Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q1 FY2022 Earnings Presentation
34 slides from Neuland Laboratories's earnings presentation, 2021
Slide 1: Earnings Presentation Q1 FY22
Earnings Presentation Q1 FY 22 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Contents
Table of Contents Q1 FY-22 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q1 FY-22 Highlights
Q1 FY-22 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI Vice-Chairman & Chief Executive Officer “This quarter’s results are a one off in terms of performance. We witnessed inventory destocking from certain customers amid the pandemic, combined with certain business complexities resulting in revenue fluctuations. We belie
Slide 6: Key Highlights Q1 FY22
Key Highlights Q1 FY22 Business Highlights Financial Highlights ❖ Prime APIs witnessed growth led by ❖ Total income was Rs. 202.9 crore in Labetalol, Levofloxacin & Enalapril Q1FY22 as against Rs. 206.1 crore in Q1FY21 ❖ In the Specialty segment, Ezetimibe and Entacapone performed well even • Busine
Slide 7: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) QoQ YoY Particulars (Rs. Cr) Q1FY22 Q4FY21 Q1FY21 (%) (%) Total Income 202.9 259.3 (21.7)% 206.1 (1.5)% EBITDA 27.7 40.0 (30.9)% 34.4 (19.7)% EBITDA Margin 13.6% 15.4% (180) bps 16.7% (310) bps Profit Before Tax 12.0 24.3 (50.7)% 20.2 (40.7)% Profit Before Tax Mar
Slide 8: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) EBITDA (Rs. Cr) and EBITDA Margin (%) 19.0% 47 259 17.1% 41 15.4% 40 242 246 13.6% 203 28 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 EPS (Rs) PAT (Rs. Cr) 10.9% 21 8.8% 27 6.6% 17 13 21 17 4.3% 7 9 * Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY21 Q3FY21 Q4FY
Slide 9: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 2% 3% 2% 2% 8% 3% 22% 22% 22% 31% 37% 23% 28% 22% 22% 20% 21% 18% 48% 53% 53% 47% 43% 49% Q1 FY-21 Q1 FY-22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Prime Niche/Speciality CMS Others Prime Niche/Speciality CMS Others *Q1FY21 figures adjusted for
Slide 10: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 59% 60% 61% 60% 60% 55% TOP 10 TOP 5 % of Total revenue 39% 42% 43% 39% 42% 38% Q1 FY21 Q1 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 CUSTOMER YoY Analysis QoQ Movement 54% 57% 50% 52% 52% 46% 36% 37% 43% 44% 31% 37% Q1 FY21 Q1 FY22 Q2
Slide 11: Business Salience (Prime)
Business Salience (Prime) Q1 Q1 Q2 Q3 Q4 Q1 FY-21 48% FY-22 53% 47% FY21 43% 49% 53% FY21 FY21 FY22 TOP 10 TOP 5 PRODUCT YoY Analysis QoQ Movement (of Prime revenue) 94% 92% 93% 91% 94% 92% 72% 71% 74% 74% 77% 71% Q1 FY21 Q1 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 CUSTOMER YoY Analysis QoQ Movement 68%
Slide 12: Business Salience (Niche/Speciality)
Business Salience (Niche/Speciality) Q1 Q1 Q2 Q3 Q4 Q1 FY-21 28% FY-22 22% 20% FY21 19% 21% 22% FY21 FY21 FY22 YoY Analysis QoQ Movement TOP 10 PRODUCT TOP 5 (of Niche/Speciality 87% 91% 90% 89% 91% 83% Revenue) 64% 64% 67% 63% 64% 56% Q1 FY21 Q1 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 CUSTOMER YoY Ana
Slide 13: Business Salience (CMS)
Business Salience (CMS) Q1 Q1 Q2 Q3 Q4 Q1 FY-21 22% FY-22 22% 31% FY21 37% 23% 22% FY21 FY21 FY22 PRODUCT YoY Analysis QoQ Movement TOP 10 99% TOP 5 97% 99% (of CMS revenue) 86% 88% 84% 92% 89% 70% 72% 65% 92% Q1 FY21 Q1 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 CUSTOMER YoY Analysis QoQ Movement 97% 99%
Slide 14: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis Quarter on Quarter Movement 90 77 45 60 50 43 44 21 44 21 23 23 45 39 27 22 21 21 Q1 FY21 Q1 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 14
Slide 15: Number of Active CMS Projects
Number of Active CMS Projects Q1 FY22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 7 3 12 6 46 Intermediate 7 4 2 0 8 11 32 Grand Total 22 7 9 3 20 17 78 Q1 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 5 4 9 6 40 Intermediate 7 4 2 6 8 9 36 Grand
Slide 16: Well Placed for a Post-Covid World
Well Placed for a Post- Covid World Employee and operational repercussions Employee Management proactively addressed Supply Chain Supply chain consolidation and vendor Optimization collaboration to ensure minimal disruption Investing in pharma engineering and Manufacturing innovation skills coupled
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: Our Journey – Key Milestones
Our Journey – Key Milestones Laying Strong Foundation Deepening our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 -Today Strategic alignment of R&D Acquisition Separate R&D business towards Facility of advanced Centre Established niche API’s & approved Intermediates 100 Mn+
Slide 19: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added Speciality molecules for manufacturer… complex products.. Capability Capability ✓ 3 US FDA and EU GMP compliant ✓ High end complex chemistry capabilities manufacturing facilities ✓ Backend support by R&D department ✓ Collective capacity:
Slide 20: On path to being a preferred partner in CMS
On path to being a preferred partner in CMS.. Services ✓ Manufacturing API to customer specifications ✓ Designing and developing manufacturing processes ✓ Process optimization for competitiveness ✓ Complete CMC partner for the API ✓ Patent protection for processes Business Approach ✓ Local presence
Slide 21: Capabilities
CAPABILITIES
Slide 22: Scaled up Manufacturing Facilities over the years
Scaled up Manufacturing Facilities over the years Hyderabad Location of All Units 233 KL 356 KL 271 KL UNIT 1 UNIT 2 UNIT 3 BONTHAPALLY PASHAMYLARAM GADDAPOTHARAM Year of 1986 1994 2017 Establishment Mirtazapine, Sotalol HCL, Levetiracetam, Ciprofloxacin HCL, Key Levofloxacin, Salmeterol, Products i
Slide 23: Backed up by sound R&D capabilities
Backed up by sound R&D capabilities R&D Facility, Hyderabad Neuland’s R&D facility had been inspected by USDFA in February 2016 without any observations Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion drug
Slide 24: Regulatory Filings Across Geographies
Regulatory Filings Across Geographies 30 Filings with Health Canada 10 20 Japanese DMF filed China DMF filed 57 DMFs with USFDA 19 220 filings with 22 ROW filings including Turkey, KFDA Korea filings with TGA Mexico, Brazil etc ~495 24 EUDMF filings across Germany, CEPs Received for different 898+ F
Slide 25: Global Presence
Global Presence EUROPE NORTH AMERICA 36% APAC 38% 6% JAPAN MENA INDIA 4% 2% 6% BD Office in LATAM Princeton, New Jersey 8% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to Q1 FY22 Sales by End market 25
Slide 26: Neuland Today: Snapshot
Neuland Today: Snapshot Legacy Scale Capability Reach Expertise: 37+ years backed 3 Mfg. Facilities: by robust quality Regulatory Product/ Projects Presence systems, approved with 860 portfolio: 100+ APIs 80+ countries regulatory & KL capacity across therapeutic compliance categories framework R&D:
Slide 27: Financials
FINANCIALS
Slide 28: Continuous Growth…
Continuous Growth… Rs. In Cr 163 FINANCIAL PERFORMANCE 953 HIGHLIGHTS 767 ▪ Revenue CAGR of 19.2% for FY 19-21 670 105 led by growth in all 3 businesses 80 ▪ EBITDA growth of 62.8% CAGR in FY 61 19-21 due to balanced contribution from both GDS and CMS business 203 28 16 16 ▪ Shift to CMS and Special
Slide 29: Stable Balance Sheet..
Stable Balance Sheet.. Particulars Mar-19 Mar-20 Mar-21 Jun-21 Current Ratio (x) ROCE (%) (Rs. Cr) 1.47 11.93 Shareholders 1.42 696 706 782 791 7.60 ' funds 1.37 1.37 5.89 3.89 Net Debt 194 214 152 172 2019 2020 2021 Q1FY22 2019 2020 2021 Q1FY22 Investments 8 8 7 7 Fixed Asset Turnover (x) Debt to E
Slide 30: Macroeconomic factors influencing Neuland
Macroeconomic factors influencing Neuland IMPACT NEULAND RESPONSE Government regulation: ▪ Consistent regulatory audits ▪ Successfully cleared all USFDA audits since inception approvals, audits ▪ Increased scrutiny prior to drug approvals ▪ Consistent record of new drug approvals Environmental audit
Slide 31: Outlook
OUTLOOK
Slide 32: ..Laying Foundation for our Growth Strategy
..Laying Foundation for our Growth Strategy CREATE AN ORGANIZATION THAT RESULTS IN VALUE FOR ALL STAKEHOLDERS BUSINESS SCALE Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS accelerate business and CMS business growth CHEMISTRY RELATIONSHIPS Deploy
Slide 33: Contact Us
Contact Us For over 37 Years, Neuland Laboratories Ltd. For further information contact (BSE:524558, NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close IR Desk to 80 countries. Neuland Labs Neuland Labs has deve
Slide 34: Thank You
Thank You Confidential. © 2021 Neuland Laboratories Ltd. All rights reserved.
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