Imexpharm Corporation · HOSE:IMP
Imexpharm — Q1 2024 Earnings Presentation
31 slides from Imexpharm's earnings presentation, May 2024
Slide 1: Investor Presentation 1Q24 Financial Results
INVESTOR PRESENTATION 1Q24 FINANCIAL RESULTS HCMC, May 2024
Slide 2: Contents
CONTENTS 01 1Q24 BUSINESS RESULTS AND 2024 GUIDANCE 02 VIETNAM PHARMACEUTICAL MARKET OVERVIEW 03 COMPANY PROFILE
Slide 3: 1Q24 Business Results and 2024 Guidance
01 1Q24 BUSINESS RESULTS AND 2024 GUIDANCE 3
Slide 4: Low double-digit market growth led by ETC; favorable landscape for local players
Low double-digit market growth led by ETC; favorable landscape for local players ETC continues to outgrow OTC, driving the entire market to Vietnamese government’s continuous support to local achieve double-digit growth in 1Q24 pharmaceutical companies 1Q24 % YoY All ATC Antibiotics VN Pharmaceutica
Slide 5: 1Q24 Business highlights
1Q24 Business highlights Net revenue R&D Pipeline VND 491.1 bn +12 new projects ▲ 2% YoY ETC market share EBITDA New launch VND 104.7 bn 5 SKU ▼ 9% YoY (April: +2 SKU) % margin: 22% Tier 2 market Profit before tax share Stock performance 18% VND 77.8 bn 19% ytd ▼ 22% YoY 5
Slide 6: PBT declined due to stagnant OTC market, lower production & IMP4 depreciation
PBT declined due to stagnant OTC market, lower production & IMP4 depreciation VND bn YoY 13% 22x 2% 25% (22%) (25%) 3x (22%) 74% (9%) 6
Slide 7: Modest net sales growth fueled by expansion in ETC market
Modest net sales growth fueled by expansion in ETC market Revenue (VND bn) ETC Channel Gross revenue ETC 58% yoy ETC kept outperforming thanks to +13% ETC-P 65% yoy • Consistently growing hospital channel 545 • Continued partner network 482 80% 20% expansion ETC-P ETC-I • Launches of new products 1Q
Slide 8: Increasing contribution from EU-GMP factories (IMP2, 3, 4)
Increasing contribution from EU-GMP factories (IMP2, 3, 4) 4% Factory Production volume vs. 1Q23 5% 1Q24 IMP1 (4.3%) IMP2 (6.5%) 4% 2% 42% IMP3 2.7% 35% 25% 1Q23 IMP4 800% 58% 11% Others (28%) TOTAL (4.2%) In 1Q24, we pro-actively lowered inventory balance especially at IMP1 given stagnant retail ma
Slide 9: COGS hike partially offset by effective SG&A cost control
COGS hike partially offset by effective SG&A cost control COGS (VND bn) +25% COGS increased sharply in 1Q24 due to API price increased ~ 3% on average 311 Pro-actively lower finished goods inventory balance amid sluggish 248 OTC market, that resulted in lower production volume 1Q23 1Q24 Significant
Slide 10: Resilient profitability
Resilient profitability Gross 48% Key focus areas profit 44% margin 39% 37% 34% Upgrade SAP ECC to SAP S/4 Hana Rise, 27% 25% FY23 avg. 24% and IFRS implementation EBITDA 20% 21% margin Continue to launch new products in IMP4 Conclude the Service Agreement with SK – 1Q23 2Q23 3Q23 4Q23 1Q24 Plasma i
Slide 11: Positive ytd stock performance
Positive ytd stock performance % Stock price VND 67,500 30.00 IMP Market cap VND bn 4,700 25.00 DHG 20.00 EPS VND 4,149 TRA 15.00 DBD 10.00 P/E 16.3 DMC 5.00 VN-Index P/B 2.2 - (5.00) EBITDA multiple 10.4 (10.00) Revenue multiple 2.4 (15.00) 17-Jan 2-Feb 27-Feb 14-Mar 1-Apr 17-Apr 9-May 27-May Note:
Slide 12: 2024 Business guidance
2024 Business guidance No. Target (VND Bn) 2023 2024 Growth 1 Gross revenue 2,113.9 2,630.1 24% • OTC 1,083.0 1,214.0 12% • ETC 884.0 1,316.1 49% 2 Net revenue 1,994.0 2,364.9 19% 3 Profit before tax 377.3 423.0 12% 4 EBITDA 466.0 550.0 18% EBITDA margin 23% 23% 12
Slide 13: Vietnam Pharmaceutical Market Overview
02 VIETNAM PHARMACEUTICAL MARKET OVERVIEW 13 13
Slide 14: Fast-growing Vietnam pharma market with increasing local contribution
Fast-growing Vietnam pharma market with increasing local contribution Top 10 pharma companies by sales value in 2023 Vietnam as one of 17 countries classified as pharmerging 100 % markets with double digit growth 90 % MNCs 80 % MSD Domestic companies 70 % Local production value share FY 2023 % Growt
Slide 15: Viral vaccines and antibiotics are leading market in terms of sales value
Viral vaccines and antibiotics are leading market in terms of sales value Top 15 leading ATC3 by sales value in 2023 IMP is covering J01C and J01D J07E - 80% Viral Vaccines 70% 60% J07B - L01G - 50% Combi Of Vaccines Mab Antineoplastics 40% A12A - J07D - C10A - J01C - Calcium Bacterial Vaccines Chol
Slide 16: Pharmaceutical market trend
Pharmaceutical market trend HIGH DEMAND FOR HIGH-QUALITY DRUGS 1 HIGH-GROWTH CAGR 2022-2027 forecasted 2 ANTIBIOTICS 3 BENEFITED (i.e. EU-GMP) at 10.3% thanks to As per Vietnam disease’s Growing middle and high in model, antibiotics constitute the come population while market • Stable economic growt
Slide 17: Company Profile
03 COMPANY PROFILE 17 17
Slide 18: A leading Pharmaceutical company in Vietnam
A leading Pharmaceutical company in Vietnam Est. Year 1977 Largest EU-GMP production facilities in VN 11 Headquarter Dong Thap, Vietnam 7 6 5 3 3 3 3 Major Shareholders SK(1) 65%, Vinapharm 22% # Employees 1,400 No.1 in Antibiotics market (% M/S) (2) Net revenue VND 1,994 bn 8.7 21% growth rate 8.7
Slide 19: Our almost 5 decades of pioneering and innovation
Our almost 5 decades of pioneering and innovation 1997 2001 2016 2020 2023 The 1st pharma The 1st pharma IMP3: EU-GMP Health Supplement 27 EU MAs company achieved company to be Factory achieved (11 products) ASEAN GMP equitized in WHO-GMP Vietnam pharma SK Group became a No. 1 market strategic share
Slide 20: Production capabilities
Production capabilities We develop the largest number of EU-GMP production lines in Vietnam IMP1 • Est: 1997 (’23 WHO-GMP recertified) IMP3 • Est. 2010 (’23 EU-GMP recertified) • Non-beta Lactam, Penicillin, • Key line: Cephalosporin, Penicillin Supplements, Herbal medicine • Production lines: 5 • P
Slide 21: Sales capabilities - leading ETC market
Sales capabilities - leading ETC market We attain No. 1 local manufacturer position in ETC channel in Vietnam thanks to high-quality products and strong bidding track records We are the only local pharma company 1 branch to be in Top 5 ETC Players in Vietnam Hanoi 45 sales reps Top 5 players in ETC
Slide 22: Sales capabilities – rapidly expanding OTC network
Sales capabilities – rapidly expanding OTC network Our nationwide sales network covers 63/ 63 cities in Vietnam We sell to 17,500+ mom-and-pop pharmacies in the country and develop strong partnership 1 branch Hanoi 45 sales reps with leading pharmacy chains. Northern Top 4 pharmacy chains in Vietnam
Slide 23: Our Valued Partners
Strong partnership with global pharmaceutical companies Our Valued Partners 23
Slide 24: Strong growth momentum
Strong growth momentum Net revenue (VND Bn) CAGR 9% VND 1,994 bn record high revenue in 2023, thanks to… 1,994 +26% YoY 7% vs. 8% market avg 6% yoy in OTC despite flat OTC market, driven by 1,403 5% 3-digit-growth in selling to pharmacy chains; and 42% 10% 11% 34% 7% 30% 35% 34% 56% yoy in ETC which
Slide 25: Sustainable profitability
Sustainable profitability Profit before tax (VND bn) EBITDA (VND bn) • Consistent investment in EU-GMP productions created • Profit margin has significantly improved thanks to better competitive advantages for IMP to sustain strong economies of scale and multiple initiatives to optimize profitabilit
Slide 26: Revenue breakdown
Revenue breakdown Product mix Factory contribution 3% 4% 9.4% 31% 5.4% 71% 29% 51% 4.8% 2.8% 2.7% 1.0% 1.1% 1.7% 11% Antibiotics Cough medicine Analgesic and antipyretic Digestive aid IMP1 IMP2 IMP3 IMP4 Others Anti-tuberculosis Anti-inflammatory Antiallergy Vitamins Health supplement • IMP1 - total
Slide 27: Our products
Our products \ — mrs “Oe Claminat 1 29 LEVOFLOXACIN Claminat ter E' — ~ gas Bee . Se MEXCOLD’ Plo me > Oweoum GB
Slide 28: Key Financial Ratios
Key Financial Ratios Ratio 2019 2020 2021 2022 2023 Note Net revenue (VND Bn) 1,402.5 1,369.4 1,266.6 1,643.7 1,994.0 9.2% CAGR (19-23) Profit before tax (VND Bn) 202.4 255.4 238.9 291.4 377.3 16.8% CAGR (19-23) EBITDA (VND Bn) 247.3 314.2 304.8 355.6 466.0 17.2% CAGR (19-23) BV (VND) 31,544 25,941
Slide 29: Top-tier fully-integrated pharma with value added portfolio
Top-tier fully-integrated pharma with value added portfolio IMP Vision SEA’s Top-tier Fully Integrated Pharma with Value Added Portfolio 2030 As-Is (’23) To-Be (’30) Experience-based/ Market & Strategy “Market Creator” Reactive Data-Driven Quality/ Tech. / Portfolio “First Generic” Antibiotics Value
Slide 30: Shareholder structure and IMP stock
Shareholder structure and IMP stock 13.17% Charter capital VND bn 700 No. of outstanding shares 70 million shares Book value per share VND 29,763 22.03% EPS VND 4,380 64.80% Market cap VND bn 3,964 P/E 12.9 x P/B 1.9 x SK and related parties (KBA, Binh Minh Kim) EBITDA multiple 8.5 x Vietnam Pharmac
Slide 31: Thank You
Thank You For further discussion, please contact our IR team ir@imexpharm.com 31