Wockhardt Limited · NSE:WOCKPHARMA
Wockhardt — Investor Presentation (October 2013)
33 slides from Wockhardt's investor presentation, October 2013
Slide 1: Wockhardt Limited Investor Presentation
Wockhardt Limited Investor Presentation By Dr. Murtaza Khorakiwala Managing Director Oct 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement • Except for historical information contained herein, statements in this communication, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “
Slide 3: Introduction to Wockhardt
Introduction to Wockhardt Key Business Dynamics
Slide 4: Wockhardt Today
Wockhardt Today UK, Ireland, France, Switz. USA Direct Operations in India, USA Mexico India and Europe 8600 Associates employed in 21 countries Wockhardt Direct ROW operations operations Investor Presentation Oct 2013 4
Slide 5: Wockhardt Today
Wockhardt Today UK Ireland 9 sites Chicago in India 12 Baddi Manufacturing Locations globally Ankleshwar Daman (2 Plants) Aurangabad (5 Plants) Formulations APIs Investor Presentation Oct 2013 5
Slide 6: Wockhardt Today R&D Centers
Wockhardt Today 3 R&D Centers worldwide USA / UK & India Investor Presentation Oct 2013 6
Slide 7: Update on Recent Events
Update on Recent Events TWOCKHARDT
Slide 8: Regulatory Inspections, Suspension of DPN
Regulatory Inspections Suspension of DPN
Slide 9: Regulatory Inspections, Suspension of DPN
Regulatory Inspections Suspension of DPN
Slide 10: Regulatory Inspections in weeks
Update on Recent Events 11 Regulatory Inspections in 12 weeks Investor Presentation Oct 2013 10
Slide 11: Q2FY14 / H1FY14 Regulatory Inspection Status
Update on Recent Events Q2FY14 / H1FY14 – Regulatory Inspection Status Q2FY14 H1FY14 Total No. of Regulatory Inspections 11 12 +ve outcomes (with no or minor observations) 8 9 -ve outcomes (with critical / major observations) 2 2 Result Awaited 1 1 Investor Presentation Oct 2013 11
Slide 12: Waluj Facility
Update on Recent Events 1. Waluj Facility The remediation measures have been initiated. Baseline assessment completed by Lachman Training to concerned on cGMP and Data Integrity is completed Restructuring of the Quality Function at corporate and at site completed A remediation plan is in p
Slide 13: Chikalthana Facility
Update on Recent Events 2. Chikalthana Facility Jointly inspected by USFDA and UKMHRA in July 2013 USFDA had raised certain 483 observations. Wockhardt had responded to observations from both the regulators. UKMHRA has issued a restricted GMP certificate for the Chikalthana facility to allow
Slide 14: Kadaiya and Bhimpore Facilities
Update on Recent Events 3. Kadaiya Facility Inspected by UKMHRA in September 2013 UKMHRA will issue a restricted GMP certificate for the Kadaiya to allow manufacture of certain critical products whilst it has withdrawn the GMP certificate. The Net Impact of the above shall be known once UKMHRA
Slide 15: Shendra, Waluj Cephalosporin and Baddi Facilities
Update on Recent Events 5. Shendra facility UK MHRA has conducted inspection at Shendra in July 2013 and there were no “Critical” or “Major” observations. Irish Medicine Board (IMB) conducted inspection at Shendra in July 2013 and there were no major observations. USFDA inspection is expected
Slide 16: UK Facility
Update on Recent Events 8. UK facility UK MHRA has conducted inspection at Wrexham, UK facility in July 2013 and the same was completed satisfactorily without any observations. USFDA also inspected the said facility in September 2013 and the same was completed satisfactorily with few minor obser
Slide 17: Regulatory Inspections, Suspension of DPN
Regulatory Inspections Suspension of DPN
Slide 18: Dextropropoxyphene suspension
Update on Recent Events Dextropropoxyphene suspension The manufacture and sale of Dextropopoxyphene (DPN) was suspended vide Gazette notification in May 2013. Wockhardt is contesting the suspension of the same and the matter is currently sub- judice. Investor Presentation Oct 2013 18
Slide 19: Q2FY14 Results
Q2FY14 Results TWOCKHARDT
Slide 20: Sales – Decline of 11% over Q2FY13
Sales – Decline of 11% over Q2FY13 Rs.crore Decline of 11% in Q2FY14 over Q2FY13 Investor Presentation Oct 2013 20
Slide 21: EBITDA – Declines by 62% over Q2FY13
EBITDA – Declines by 62% over Q2FY13 Rs.crore Declines by 62% in Q2FY14 over Q2FY13 Investor Presentation Oct 2013 21
Slide 22: Adj. PAT – Declines by 68%
Adj. PAT – Declines by 68% Rs.crore Declines by 68% in Q2FY14 over Q2FY13 Investor Presentation Oct 2013 22
Slide 23: Research – Increases to 10.2% of Sales
Research – Increases to 10.2% of Sales Investor Presentation Oct 2013 23
Slide 24: H1FY14 Results
H1FY14 Results TWOCKHARDT
Slide 25: Sales – Decline of 5% over H1FY13
Sales – Decline of 5% over H1FY13 Rs.crore Decline of 5% in H1FY14 over H1FY13 Investor Presentation Oct 2013 25
Slide 26: EBITDA – Declines by 36% over H1FY13
EBITDA – Declines by 36% over H1FY13 Rs.crore Declines by 36% in H1FY14 over H1FY13 Investor Presentation Oct 2013 26
Slide 27: Adj. PAT – Declines by 39%
Adj. PAT – Declines by 39% Rs.crore Declines by 39% in H1FY14 over H1FY13 Investor Presentation Oct 2013 27
Slide 28: Balance Sheet
Balance Sheet Investor Presentation Oct 2013 28
Slide 29: Key Financial Highlights
Key Financial Highlights Net Debt to Equity now at 0.21 as against 0.36 as of 31st Mar 2013 Free Cash Flow (before Capex) generation of over Rs.700 crores in H1FY14 Capital Expenditure of Rs.208 crores in H1FY14 R&D expenses at 10.2% of sales in Q2FY14 and at 8.8% of sales in H1FY14 Investor
Slide 30: US Business: Import Alert impacted
US Business: Import Alert impacted • Declines by 19% (26% in $terms) over Q2FY13. • 3 ANDAs filed during the quarter • 53 ANDAs pending approval. • Sales impacted by import alert on Waluj facility. Investor Presentation Oct 2013 30
Slide 31: EU Operations: Withstanding Challenge
EU Operations: Withstanding Challenge UK Operations • UK operation grows by 5% (-2% in £ terms) in Q2FY14. Grows by 3% (remains flat in £ terms) in H1FY14 • UK sales impacted due to reversals on product recalls. • 1 new launch in UK and 4 new launches in H1FY14 • No. 3 Generic company in UK • No. 2
Slide 32: Emerging Markets
Emerging Markets • Emerging Markets declines by 7% for Q2FY14. Declines by 6% for H1FY14. • India Business declines by 2% during Q2FY14 and grows by 1% in H1FY14 in the backdrop of suspension of Dextropropoxyphene and uncertainties due to NLEM issues. • 13 new product launches in Q2FY14 in India. •
Slide 33: For investor updates and communication
For investor updates and communication please visit www.wockhardt.com For Information please contact Tushar Mistry Tel.: +91 22 26596210 tmistry@wockhardt.com Investor Presentation Oct 2013 33