Solara Active Pharma Sciences Ltd. · NSE:SOLARA
Solara Active Pharma Sciences — Q2 FY2019 Earnings Presentation
30 slides from Solara Active Pharma Sciences's earnings presentation, November 2018
Slide 1: Respect Integrity Transparency Efficiency – November 2018
RESPECT INTEGRITY TRANSPARENCY EFFICIENCY N O V E M B E R 2 0 1 8
Slide 2: Young but enterprising
YOUNG BUT ENTERPRISING. SOLARA IS YOUNG BUT DIFFERENTIATED TO THE CORE WITH ITS BUSINESS MODEL
Slide 3: Evolution on an experienced foundation
Evolution on an experienced foundation Demonstrated operational excellence over 2 decades • Demerged the select API business of Strides Shasun to • Demerged Human API business from SeQuent to operate as integrate with human API business of SeQuent Pure Play animal healthcare company • Expansion acro
Slide 4: Building on strong core values
Building on strong core values Doing what is ‘RITE’ for the customers Respect Transparency We treat each other and our partners with Through timely communications, it is our endeavor to keep respect. We value and respect each others time. our stakeholders, suppliers and customers aware and well We w
Slide 5: Pure-play APIs with focused business orientation
Pure-play APIs with focused business orientation API only business model with large scale infrastructure, wide products and established customer relationships Capabilities Research Complex chemistry capabilities including Pipeline of 20+ products under handling of catalytic hydrogenation, hydride di
Slide 6: Changing API landscape
CHANGING API LANDSCAPE. THE API INDUSTRY GLOBALLY IS IN THE TRANSITION AND SOLARA GETS THE ADVANTAGE
Slide 7: While the opportunity is growing, it needs a focused play
While the opportunity is growing, it needs a focused play Trends indicating favorable play for companies with focused API play USFDA’s increasing Supply chain IP conflicts and Increasing Pollution and oversight on APIs discontinuance competing interests Environmental Concerns • FDA’s increased overs
Slide 8: Solara is in a sweet spot amongst the peer group
Solara is in a sweet spot amongst the peer group Our core strategy is in sync with the trends , focus is now on steady execution Control over supply chain for APIs Commitment to highest levels of Compliance • Comfort to customers with a backward integrated setup that ensures supply F C • Integrated
Slide 9: Strategically poised
STRATEGICALLY POISED. SOLARA IS WELL DESIGNED TO SCALE A PROMISING AND EXPANDING BUSINESS
Slide 10: Robust manufacturing capabilities
Robust manufacturing capabilities 5 facilities with all major regulated market approvals Core focus • Mirrored facilities for developing products • Deploy systems that are highly automated and stringent, specifically in the labor intensive areas. • Focus on technology and production processes that r
Slide 11: Wide product offerings and pipeline
Wide product offerings and pipeline Rich basket of niche high value products for the global markets DMF FILING RUN RATE GEOGRAPHY WISE FILINGS 72 10 15 12 8 6 6 FY16 FY17 FY18 FY19(P) FY20(P) • 50+ Commercial APIs predominantly in Anthelmintic, Anti-malarias, Anti-infective, Neuromuscular Insomnia,
Slide 12: Foothold in key markets
Foothold in key markets Establishing relationship with customers ensuring business enhancement 27% 38% EU 3% US 1% MENA Japan 10% 17% WHO SE Asia 3% LatAm 12
Slide 13: Strong Compliance and Quality Framework
Strong Compliance and Quality Framework Consistently deliver high quality products that can be relied upon by both our customers and regulators Competitive Competitive compliance demonstrated through various successful customer and regulatory audits Multilayered Appropriate cGMP for all phases of In
Slide 14: Experienced Leadership and execution team
Experienced Leadership and execution team Jitesh Devendra (Jitesh) Ranjit Kumar Singh (Ranjit) CEO Chief People Officer >20 years’ experience in pharmaceutical business development >12 years of professional HR and Talent management experience in varied predominantly in regulated markets. Jitesh has
Slide 15: Independent board with strategic oversight
Independent board with strategic oversight Deepak Vaidya Non-Exec. Director & Chairman Fellow member of the ICA in England and Wales. He has previously worked as the Country Head of Schroder Capital Partners (Asia) Pte. Ltd. for over 12 years. He is experienced in the corporate financial services in
Slide 16: Growth strategy
GROWTH STRATEGY. INTEGRATE, EXPAND AND SEAMLESSLY EXECUTE
Slide 17: Enablers for the growth strategy
Enablers for the growth strategy Focus on differentiated strategy led by technology, compliance, and internationally relevant infrastructure Efficiencies in manufacturing operations Accelerate R&D Choosing the right products , optimizing costs and Augmenting the existing R&D capabilities at finding
Slide 18: Efficiencies in manufacturing operations
Efficiencies in manufacturing operations Following a strategy of creating dedicated trains after assuring demand Core strategy around product selection and lean manufacturing practices Driving the asset turns from 1.0x to 1.4x Consistency and efficiency of planned Choosing the right products , getti
Slide 19: Value creation possibility
Growth matrix for new products Phase 3 molecules • Forward looking products under development • Focus on developing IP to create entry barrier for NCE-1s competition and build strong intrinsic value • Products with ANDA filing dates in the near term • Possibility of recovering the development costs
Slide 20: Accelerate R&D engine on Technologies
Accelerate R&D engine on Technologies • Organometallic Reaction • Friedel Crafts Reaction • Diazotization • Grignard Reaction • Chiral Synthesis • Acylation • Sandmeyer Reaction • Buchwald-Hartwig coupling • Amidation • Reduction • Halide Exchange • Hydrogenation • Transfer phase Reaction • Alkylati
Slide 21: Building on Analytical capabilities
Building on Analytical capabilities Analytical method validation and method transfer as per ICH guidelines and FDA requirement for key starting materials, Intermediates & API Compliance Impurity profiling US FDA audited and approved analytical laboratory facility with Impurity profiling and Quantifi
Slide 22: Sustainability strategy
Sustainability strategy Step up investments to setup flagship facility and drive innovation and compliance to the next level Environment Chemistry Compliance Capacity Environment and health as Focus on the designing of Significant emphasis to Building a highly automated non-negotiable values that pr
Slide 23: Solara Differentiators
Solara Differentiators Product Value Service • Quality of the Product • One Global Quality Policy • Exports to several countries • Matured and New API • Price and Speed • Reliable supplier • Pure Play API Company • Trust • Non-Compete • Focus approach to attain New Markets • Regulatory needs of the
Slide 24: Q2 FY19 Performance
Q2 FY19 PERFORMANCE. AN EVENTFUL YEAR FOR THE STRATEGIC GOALS
Slide 25: Key Highlights for Q2FY19
Key Highlights for Q2FY19 “ Quarterly Update(QoQ) Quarterly Update(YoY) H1 FY19 Update(YoY) We are happy to continue our growth momentum in • Total Revenue was ₹3,437 Mn for • Total Revenue was ₹3,437 Mn for • Total Revenue was ₹6,470 Mn for the second quarter with a healthy QoQ and YoY Q2FY19 as co
Slide 26: Q2FY19 Performance - QoQ
Q2FY19 Performance - QoQ Financial Highlights Quarterly Trend Particulars Q2 FY19 Q1 FY19 Change Revenues Operating EBITDA Reported EBITDA Revenue 3,437 3,033 13% 3437 Operating EBITDA 669 631 6% 3033 Operating EBITDA Margins 19.5% 20.8% -130 bps R&D Cost -111 -97 Forex gain/(Loss) -63 -69 669 495 6
Slide 27: Q2FY19 Performance – YoY
Q2FY19 Performance – YoY Financial Highlights Quarterly Trend Particulars Revenues Operating EBITDA Reported EBITDA Q2 FY19 Q2 FY18 Change Revenue 3,437 2,798 23% 3437 Operating EBITDA 669 451 48% 2798 Operating EBITDA Margins 19.5% 16.3% 358 bps R&D Cost -111 -22 Forex gain/(Loss) -63 -17 669 495 4
Slide 28: H1FY19 Recap
H1FY19 Recap H1FY19 Review Key Balance Items Balance sheet items Mar'18 Sep'18 Particulars H1FY19 H1FY18 Change Shareholders' funds 7,640 7,607 Revenue 6,470 5,136 26% Less: Goodwill -3,634 -3,586 Networth 4,006 4,021 Operating EBITDA 1,300 831 56% Term Loan 3,027 3,376 Operating EBITDA Margins 20.1
Slide 29: 5 years perspective
5 years perspective Business Continuity Portfolio of new products and new customers to augment current base and enable steady growth Worldwide Presence Established strongholds in key regulated markets and growth territories Well on its path to become a leading pure-play API company with focus on hig
Slide 30: Registered Office
REGISTERED OFFICE 201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703. Tel.: +91 22 2789 2924 Fax No. +91 22 2789 2942 Email: investors@solara.co.in Website: www.solara.co.in CIN: U24230MH2017PLC291636 CORPORATE OFFICE 3rd & 4th Floor, Batra Centre, No.28, Sardar Patel Road, Guindy, Chennai - 60
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