Vivimed Labs Limited · NSE:VIVIMEDLAB
Vivimed Labs — Q1 FY2015 Earnings Presentation
20 slides from Vivimed Labs's earnings presentation, Aug 13, 2014
Slide 1: Vivimed Labs Limited Q1 FY2015 Earnings Presentation
Vivimed Labs Limited Q1 FY2015 Earnings Presentation August 13, 2014 1 www.vivimedlabs.com © Vivimed Labs Ltd 2010 All rights reserved
Slide 2: Important Notice
Important Notice No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after
Slide 3: Where Chemistry and Quality Matters
Where Chemistry and Quality Matters Unique Business Model Best-in-Class Operations • Uses chemistry to create ingredients which • 12 manufacturing facilities and 5 R&D touch human life on a daily basis centers across the world • Focused on the Health Care, Personal Care, • 4 US FDA approved sites Ho
Slide 4: Business Segments
Business Segments Healthcare Personal Care Home Care Industrials 75.8% of Q1 FY15 sales 14.5% of Q1 FY15 sales 7.0% of Q1 FY15 sales 2.7% of Q1 FY15 sales • Active • Sun Care • Antimicrobials • Photo Chromic Pharmaceutical • Skin Care • Specialty Dyes Ingredients (API) • Hair Care Intermediates • Im
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance Performance Highlights Q1 FY2015 Revenue Breakup 7.0% 2.7% 75.8% Net Sales of Rs. 3,678 million 14.5% o Increased 6.9% y-o-y EBITDA of Rs. 581 million (up 18.9% y-o-y) o EBITDA margin of 15.8% (up 159 bps) Net Profit of Rs. 171 million and margins of 4.7% Hea
Slide 6: Financial Performance
Financial Performance Consolidated Financials Q1 y-o-y Q4 q-o-q Full Year y-o-y (Rs. million) FY2015 FY2014 Growth (%) FY2014 Growth (%) FY2014 FY2013 Growth (%) Net Sales 3,678 3,439 6.9% 3,721 (1.2)% 13,590 11,207 21.3% EBITDA 581 488 18.9% 584 (0.6)% 2,133 1,976 7.9% Margin (%) 15.8% 14.2% 15.7%
Slide 7: Segment Highlights: Healthcare
Segment Highlights Healthcare Segment Q1 FY15 Revenue: Rs. 2,779 mn 3.2% • EBIT margins increased from 7.9% in Q1 FY2014 to 8.5%, an 19.6% improvement of 61 bps. Efforts on higher revenue productivity and cost optimization have started to yield results • In the API segment, manufacturing volume has
Slide 8: Segment Highlights: Personal Care
Segment Highlights Personal Care Segment Q1 FY15 Revenue: Rs. 530 mn 0.5% • Overall, sales declined y-o-y as the Company strategically reduced volumes from low margin, high volume products to focus 46.1% more on the core home & personal care segments. Typically, the business is seasonally stronger i
Slide 9: Segment Highlights: Home Care and Industrials
Segment Highlights Home Care Segment Q1 FY15 Revenue: Rs. 258 mn 5.8% • Strategic defocus on trading of specialty intermediates resulted in 31.8% loss of sales of low margin products • Partly offset by encouraging off-take in preservatives as a new product starts to make contributions • Outlook rema
Slide 10: Segment Highlights
Segment Highlights Q1 y-o-y Q4 q-o-q Full Year y-o-y (Rs. million) FY2015 FY2014 Growth (%) FY2014 Growth (%) FY2014 FY2013 Growth (%) Segment Revenue 3,665 3,408 7.6% 3,682 (0.4)% 13,508 11,088 21.8% Specialty chemicals 886 983 (9.9)% 1,184 (25.1)% 4,143 3,704 11.9% Healthcare 2,779 2,424 14.6% 2,4
Slide 11: Quarterly Financial Trends
Quarterly Financial Trends Net Sales EBITDA and Margins 3,721 3,678 584 581 3,439 3,358 3,073 536 524 Rs. Million Rs. Million 488 17.0% 16.0% 15.7% 15.8% 14.2% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 EBITDA Margin (%) Net Profit and Margins 200 190 164 171 Rs.
Slide 12: Capital Markets
Capital Markets Shareholding Structure Key Institutional Investors 32.0% 38.1% 2.3% 27.6% Promoters FII DII Others Shareholding Pattern Trend Shareholders Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Promoters1 39.8% 37.8% 37.8% 38.1% 38.1% FII / FDI 27.4% 27.5% 27.5% 27.5% 27.6% DII 2.5% 2.4% 2.4% 2.3% 2.3%
Slide 13: Strategic Direction
Strategic Direction Continue to strengthen engagements with marquee customer base through superior product development and delivery capabilities Where Chemistry and Quality Matters Move up the value chain through vertical integration in Healthcare (R&D to manufacturing of API / FDF / brands) and tar
Slide 14: Global Reach
Global Reach A multinational global platform that provides Vivimed access to markets and significant cost advantage Kashipur, Uttarakhand Haridwar, Uttarakhand Sant Celoni, Spain Lliçà de Vall, Spain Kolkata Cuernavaca, Mexico Bonthapally, Hyderabad Bidar, Karnataka Bolarum, Hyderabad Jeedimetla, Hy
Slide 15: Strong Transnational Management Team
Strong Transnational Management Team Key Management Profile Santosh Varalwar • First generation entrepreneur Managing Director & Chief • Business growth strategy and leadership; Focus on key global client relationships Executive Officer • Previously associated with Shipping Corporation of India Subh
Slide 16: Annexure – Quarterly Consolidated P&L Statement
Annexure – Quarterly Consolidated P&L Statement Profit & Loss Statement (Rs. million) Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 3,408 3,066 3,353 3,682 3,665 Other Operating Income 32 6 5 39 12 Total Revenues 3,439 3,073 3,358 3,721 3,67
Slide 17: Annexure – Working Capital Cycle
Annexure – Working Capital Cycle 171 159 155 147 Number of days 135 112 115 74 86 39 55 54 112 121 101 94 FY 2011 FY 2012 FY 2013 FY 2014 Debtor days Creditor days Inventory days Working Capital Cycle days 17
Slide 18: Annexure – Key Ratios
Annexure – Key Ratios FY2012 FY2013 FY2014 Net Worth (Rs. million) 4,748 5,091 5,604 Net Debt (Rs. million) 5,079 5,741 7,775 Fixed Assets (Rs. million) 5,953 7,090 8,079 ROE (%) 18.4% 18.8% 13.4% ROCE (%) 8.1% 9.4% 7.7% Interest Coverage Ratio (x) 3.74 3.39 2.44 Net Debt to EBITDA (x) 3.82 2.91 3.6
Slide 19: Glossary
Glossary • ANDA: Abbreviated New Drug Application • API: Active Pharmaceutical Ingredients • CEP: Certificates of Suitability to the monographs of European Pharmacopoeia • CMO: Contract Manufacturing Organization • DMF: Drug Master File • FDF: Finished Dosage Formulation • H&PC: Home and Personal Ca
Slide 20: Thank You
Thank You Contact Details: Vivimed Labs Limited (CIN: L02411KA1988PLC009465) Veernag Towers, Habsiguda, Hyderabad 500 007 www.vivimedlabs.com Phone: +91 40 2717 6005 / 06 Fax: +91 40 2715 0599 Raghu Iyer +91 40 2717 6005 Vivimed Labs Limited raghu.iyer@vivimedlabs.com Saket Somani +91 22 3953 7444 C