26 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, Aug 1, 2023
Slide 1: WuXi AppTec First Half 2023 Results
WuXi AppTec First Half 2023 Results August 1, 2023 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe
Slide 3: Results Overview, Business Highlights, Financial Performance, Growth Outlook
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook 3 Note: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB.
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Continued Revenue & Profit Growth in Q2 2023
Continued Revenue & Profit Growth in Q2 2023; Revenue excluding COVID-19 Commercial Projects Grew Stronger Revenue Adjusted Non-IFRS Net Profit RMB billion +6.7% excluding +39.5% COVID-19 RMB billion +22.4% commercial projects 2.8 9.3 9.9 2.2 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Net Profit Net Profit Aft
Slide 6: Continued Solid Growth of Revenue & Profit in H1 2023
Continued Solid Growth of Revenue & Profit in H1 2023 Revenue Adjusted Non-IFRS Net Profit RMB billion +6.3% excluding +27.9% COVID-19 RMB billion +18.5% commercial projects 18.9 5.1 17.8 4.3 H1 2022 H1 2023 H1 2022 H1 2023 Net Profit Net Profit After Deducting Non-Recurring Items RMB billion RMB bi
Slide 7: H1 2023 Business Highlights
H1 2023 Business Highlights Enable Customers to Grow Together Continued to Build Platform 600+ new customers, 6,000+ active customers 32 global sites & branch offices Backlog +25%↑ excluding COVID-19 commercial 41,296 total employees, including, projects, among which, TIDES backlog +188%↑ 37,972 sci
Slide 8: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Execute Long-Tail Strategy Increase Customer Strong, Loyal & & Increase Support to Conversion to Sustain Expanding Customer Base Large Pharma Growth Revenue breakdown Revenue breakdown Revenue breakdown Existing clients Top 20 global pharma cli
Slide 9: Diversified Revenue Streams from Customers Across Regions
Diversified Revenue Streams from Customers Across Regions Ensure the Stability and Resilience of the Company’s Financial Performance China Europe 3.23Bn, +6% 2.22Bn, +19% US Revenue contribution: 17% Revenue contribution: 12% 12.37Bn, excluding COVID-19 commercial projects +42% Revenue contribution:
Slide 10: Strong Commitment to Environmental Protection and ESG
Strong Commitment to Environmental Protection and ESG Sustainability Management ESG Leading Position in the Global ESG Rating Systems and Technologies Green Chemistry Technology Platforms • Biocatalysis • Flow chemistry (continuous manufacturing) Awarded as Industry and Named to the 2022 S&P DJSI Re
Slide 11: 2. Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 12: WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth
WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth, with Continued Expansion in TIDES Drug Discovery (R) Generating Strong Growth of Development Continued Expansion of Financial Performance Downstream Opportunities and Manufacturing (D&M) New Modalities (TIDES) ⚫ Q2 revenue grew 2.
Slide 13: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline driven by “Follow the Molecule + Win the Molecule” Strategies H1 2023 Newly “R” Added Molecules 424,938 Compounds 1 in Total 583 571 2,403 Preclinical & Phase I 10 301 Phase II 1 59 Phase III 1 56 Commercial 13 Note: 1. 424,938 compounds successfully synthesize
Slide 14: WuXi Testing: Lab Testing Services Drive Steady Growth
WuXi Testing: Lab Testing Services Drive Steady Growth, and Clinical Business Fully Recovered Financial Performance Lab Testing Services Clinical CRO & SMO ⚫ Q2 revenue grew 23.6% YoY to ⚫ Q2 revenue of lab testing services grew 21.4% YoY to ⚫ Q2 revenue from clinical CRO and SMO grew 29.6% 1.64bn 1
Slide 15: WuXi Biology: Strong Contribution from New Modalities
WuXi Biology: Strong Contribution from New Modalities; Early Discovery Screening Platform Continued to Generate Downstream Opportunities Financial Performance Discovery Biology Comprehensive Screening Platform ⚫ Q2 revenue grew 17.5% YoY to ⚫ One of the largest discovery biology enabling platform ⚫
Slide 16: WuXi ATU: CTDMO Business Model Drives Growth
WuXi ATU: CTDMO Business Model Drives Growth Financial Performance Pipeline & Progress of Commercial Projects ⚫ Q2 revenue grew 22.9% YoY to ⚫ Focused on improving our integrated CTDMO enabling platform, providing development, testing & manufacturing 0.39bn services for 69 projects, including 7 Phas
Slide 17: WuXi ATU: Growing Pipeline on Globally Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform Testing Cell Therapies Gene Therapies CAR-T | TIL | MSC Cells AAV | LVV | TESSA Provided globally 52 Preclinical & Phase I integrated CTDMO services to Cell & Gene Therapies product 10 Phase II development 7 Phase III ✓ 2 projects
Slide 18: WuXi DDSU: First Year to Receive NDA Approval of New Drugs
WuXi DDSU: the First Year to Receive NDA Approval of New Drugs Developed for Customers; Breakthrough to Receive the First Royalty Income Financial Performance NDA Approval Project Pipeline ⚫ Q2 revenue declined 17.9% YoY ⚫ In H1 2023, 2 new drugs developed ⚫ In H1 2023, supported customers to file I
Slide 19: 3. Financial Performance
3. Financial Performance 19
Slide 20: Financial Performance
Financial Performance Revenue Adjusted Non-IFRS Gross Profit Adjusted Non-IFRS GPM RMB MM RMB MM 39,355 39.8% 40.0% 40.3% 38.0% 38.7% 38.2% 41.6% +6.3% +27.9% 15,228 excluding COVID-19 +15.7% 22,902 commercial projects 16,535 17,756 18,871 8,704 7,855 12,872 6,670 6,790 9,614 5,155 9,282 9,908 Q2 3,
Slide 21: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +3.8% +36.1% +18.7% excluding COVID-19 commercial projects 13,467 3,091 12,974 2,605 Q2 6,856 7,034 +51.6% Q2 1,326 1,638 Q1 6,118 6,433 +21.8% Q1 1,279 1,453 H1 2022 H1 2023 H1 2022 H1 2023 WuXi Biology WuXi ATU WuXi DDSU Breakthrough from 0 to 1 +
Slide 22: Segment Adjusted Non-IFRS Gross Profit
Segment Adjusted Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing 41.0% +14.9% 45.3% 35.6% +26.1% 37.8% 6,103 5,314 1,168 927 Q2 2,847 3,216 Q2 640 470 2,466 2,888 528 Q1 Q1 456 H1 2022 H1 2023 H1 2022 H1 2023 WuXi Biology WuXi ATU WuXi DDSU +15.1% -26.2% 40.7% 41.5% H1 2022 H1 2023 30.7% 30
Slide 23: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million H1 2022 H1 2023 Net profit attributable to the owners of the Company 4,636 5,313 (1) Add: RMB MM Share-based compensation expenses 360 324 +18.5% Issuance expenses of convertible bonds 1 0.3 5,095 Fair value gains from derivative component of convertible bond
Slide 24: Continued Growth of FCF Driven by Business Growth & Operation Efficiency
Continued Growth of FCF Driven by Business Growth & Operation Efficiency H1 2023 Free Cash Flow Achieved RMB 2.93 Billion, Turned Positive and Grew Strongly YoY; Continued to Invest in New Capacities & New Capabilities RMB MM Capital Expenditure Operating Cash Flow 9,966 10,230 6,936 5,341 4,379 3,8
Slide 25: 4. Growth Outlook
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Slide 26: 2023 Outlook
2023 Outlook As global demand for life saving and innovative drugs continues to grow, demand for 1 our integrated CRDMO & CTDMO services keeps growing. We will achieve revenue growth of 5-7% in 2023 We will focus on building new capabilities and capacities, and constantly improving operating efficie