Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q1 FY2017 Earnings Presentation
27 slides from Neuland Laboratories's earnings presentation, 2016
Slide 1: Investor Presentation Q1FY17
Investor Presentation Q1FY17 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS © 2016, Neuland Laboratories Limited. All Rights Reserved
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: Company Information
Company Information © 2016, Neuland Laboratories Limited. All Rights Reserved
Slide 4: Company Overview
Company Overview 32+ 75+ 85 80+ 400+ 1000+ Years of Products Mn USD Countries of Regulatory Filings Experienced excellence developed Revenue for FY business professionals 16 including scientists • Headquartered in Hyderabad, India with two overseas subsidiaries in USA and Japan • Two Business vertic
Slide 5: Our Growth Story
Our Growth Story 2015 2013 Collaboration 10th USFDA with API Inspection Corporation, a 2009 company of 1st NCE Mitsubishi approval Chemicals 2004 PMDA US Office Japan 1997 Incorporated approval 1994 2007 First FDA 2010 Audit Japanese Neuland Subsidiary First Peptide 1986 initial Public Incorporated
Slide 6: Board and Key Management
Board and Key Management Dr. D. R. Rao D Sucheth Rao D Saharsh Rao Chairman and Managing Vice Chairman and Joint Managing Director Director CEO M.Sc. from Andhra University, Post Graduate Diploma in Technology – IIT Mechanical Engineer Engineering Graduate Kharagpur MBA in Corporate Finance
Slide 7: Board and Key Management
Board and Key Management Managing Director and Executive Vice-Chairman at Glaxo India Humayun Dhanrajgir Ex-President of Organization of Pharmaceutical Production of India Independent Director Dr. Christopher M. Ph.D. in Organic Chemistry - Purdue University, U.S.A. Cimarusti Post Doctoral Research
Slide 8: Board and Key Management
Board and Key Management Deputy Managing Director of SBI. Presently on the Boards of various companies, including SBI Capital Markets Ltd., SBI Global Factors Ltd., Tata Bharati Rao Teleservices Ltd., Delphi-TVS Diesel Systems Ltd. and Vijaya Bank. Independent Director Masters degree in statistics f
Slide 9: Business Saliency
Business Saliency Neuland Generic Drug Custom Manufacturing GDS Substances(1) CMS Solutions Contract Manufacturing business where work executed is exclusive for the customers Prime Niche on products at various phases of their life- cycle(2) Mature APIs, typically with APIs with complex high competit
Slide 10: Generic Drug Substance (GDS)
Generic Drug Substance(GDS) • Preferred and reliable source of Active Pharmaceutical Ingredients (APIs) manufacturing, marketing and supply for several leading pharmaceutical companies worldwide • Features: – 2 US FDA and EU GMP compliant manufacturing facilities – Collective capacity: 480KL – 75 AP
Slide 11: Custom Manufacturing Solutions
Custom Manufacturing Solutions Our CMS business derives from its proven expertise in manufacturing at varied scales, a deep understanding of complex chemistry and manufacturing facilities compliant with the guidelines of the leading regulatory authorities and EHS. Services • Manufacturing API to cus
Slide 12: Manufacturing Base
Manufacturing Base Bonthapally, Hyderabad Pashamylaram, Hyderabad Establishment • Started operations in 1986 • Started operations in 1994 Size and capacity • Built up area of 45,325 sq mtr. • Built up area of 36,800 sq mtr. • Plant capacity : 175.47 KL • Plant capacity : 300.10 KL Key Products • Ram
Slide 13: Business Mix
Business Mix Revenue by Verticals Revenue by end territory ROW 11% 13% 17% 11% Japan 18% 22% 4% 27% Europe 53% 71% 65% 57% North America 31% FY-14 FY-15 FY-16 India CMS NICHE PRIME 1% 13
Slide 14: R&D Infrastructure
R&D Infrastructure R&D Facility, Hyderabad* Infrastructure: • 11 Development Labs • 60 Fume hoods • Analytical Lab • Kilo Lab dedicated for Scale up Establishment • Started operations in 2008 • Dedicated Labs for Peptides Size and capacity • Built up area of 3382.5 sq mtr. • Separate facility for D2
Slide 15: Regulatory Filings and IPR
Regulatory Filings and IPR 48 25 ~400 19 5 11 144 DMFs with Filings with EUDMF filings CEPs Received Japanese DMF filings with ROW filings USFDA Health Canada across Germany, for different filed KFDA Korea including France, Poland, products Turkey, Mexico, Italy etc Brazil etc • ~650 filings world o
Slide 16: Industry structure and key drivers
Industry structure and key drivers API Industry’s Share in Global Contract Key Drivers Manufacturing Industry • Increased demand for biopharmaceutical manufacturing services Finished Dosage • Complex and potent drug development will Formulations, 33% lead to higher demand of High Potency Active Fore
Slide 17: Financial Performance
Financial Performance © 2016, Neuland Laboratories Limited. All Rights Reserved
Slide 18: Q1FY17 Performance
Q1FY17 Performance Financial Performance Operating Highlights Total Operating income was Rs 1,497.7 mn for Successfully cleared ANVISA audit for our Q1FY17 as compared to Rs 1,237.2 mn in the Unit II Q1FY16, an increase of 21% Continued business momentum in Salmetrol as we added new customers
Slide 19: Key Operating Metric
Key Operating Metric Revenue Split(Quarter on Quarter) YoY Analysis Quarter on Quarter Movement 4% 23% 22% 16% 23% 24% 30% 26% 29% 25% 25% 29% 66% 53% 57% 51% 47% 47% Q1FY16 Q1FY17 Q2FY16 Q3FY16 Q4FY16 Q1FY17 CMS NICHE PRIME CMS NICHE PRIME 19
Slide 20: Key Operating Metric
Key Operating Metric CMS Business Depth 10 9 5 6 6 3 1 3 2 3 4 1 2 1 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Clinical Commercial *- Quantities taken for validation and launch are considered as Commercial 20
Slide 21: Historical Financials
Historical Financials Financial Performance (INR Cr) Current Ratio (x) 550 510 100 1.2 464 466 469 0.9 0.9 1.1 450 0.8 350 2012 2013 2014 2015 2016 50 150 Debt to Equity (x) -50 0 2.5 FY12 FY13 FY14 FY15 FY16 1.9 1.5 1.2 0.9 Sales 450 464 466 469 510 EBITDA 48 61 73 67 82 Net Profit 2 14 27 16 27 20
Slide 22: Future Growth Strategy
Future Growth Strategy © 2016, Neuland Laboratories Limited. All Rights Reserved 22
Slide 23: Business Strategy
Business Strategy Exports higher volumes to Add new therapies and Japan and other regulated New New products having high margins markets Geography Products Add more capacity and File DMFs, Patents and grow consolidate existing with a Business Intellectual intangibly. profitable product basket Scale
Slide 24: Focus on new products
Focus on new products 17% 25% 2016 2018 50% 57% 27% 25% Higher margins Increased Faster Growth with with complex Penetration in the high volume APIs molecules APIs CMS space Bring sustainability for future 24
Slide 25: Growth in CMS
Growth in CMS Develop Scale up Manufacture • 11 development labs • 2 kilo labs • 2 manufacturing sites • 60 fume hoods • cGMP pilot plant with two • 11 diverse production blocks • mg to gm scale production areas • Kg to ton scale • Analytical R&D • 0.5-50 kg batch size Scale the revenue growth in CM
Slide 26: Investment Rationale
Investment Rationale Horizontal Growth Continued expansion as preferred API source world wide Enhance manufacturing capacity to sustain high growth in APIs and CMS Increased number of new products with focus on market share on existing products through process improvement and capacity utilizat
Slide 27: For further information contact
For further information contact: IR Desk Ankit Gupta Neuland Labs Christensen IR +91 40 3021 1600 +91 22 4215 0210 ir@Neulandlabs.com ankitgupta@christensenir.com
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