Slide 1: Q3 2023 Investor Review
— ZN Q3, 2023 ibnsina pharma Investor Review
Slide 2: Outline: Board Presentation
Outline: Board Presentation Business Performance YTD, Challenges & Key Initiatives Top Line OPEX Income Working Capital Non Core Market Performance Optimization Statement & Net Debt Business Dynamics Revenue & Gross Profit EBITDA vs OPEX Breakdown & Analysis of CCC, Debt & Financial Non-core Busines
Slide 3: Pharma Market Dynamics
Pharma Market Dynamics SA ibnsidapharma
Slide 4: Total Pharma Market Growth: QoQ 20-21-22-23
Market Value Total Pharma Market Growth: QoQ 20-21-22-23 9M 22 vs 9M 23 Exchange Rate pressure EDA to increase Prices resulting in a double-digit growth in market value 25% 57.2 45.7 43.2 42.5 41.5 39.4 36.7 36.7 36.1 33.6 32.7 32.7 29.6 29.8 27.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 20
Slide 5: Pharma Market: Growth Drivers
Units Sold ASP Pharma Market: Growth Drivers 9M 22 vs 9M 23 9M 22 vs 9M 23 Growth leveraged by “Average Selling Price” growth compensating decline in “Units sold” 6% 32% 1,023 948 958 949 927 938 905 900 893 877 887 847 836 824 809 61 55 51 46 44 41 41 38 39 37 37 35 35 34 33 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 6: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Sustainable Growth Differentiation Working Collaterals Capital (Held for Sale) Enhancement Ibnsina Pharma’s Q3, 2023 Strategic Pillars Highlights Investment OPEX Diversification Optimization Digitalization 6
Slide 7: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 8: 4% Increase in Market Share, Market Leadership
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 4% in Market Share Increase in Units & Value over Last Year in all segments Market Leadership Position 24% Market Share – 9M 8
Slide 9: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 3 25% 0.7 100% Non-Core business Debt Ratio Days of cash Performance Ro
Slide 10: Exceptional Growth in Revenues
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Exceptional Growth in Revenues Double Market Growth (25%) 50% Growth in Revenue (24.3bn) Q3 YTD 2bn Higher than Total Revenues 22 Revenues Growth Expected to exceed 11bn FY23 10
Slide 11: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 12: Higher Growth in GP vs Revenue (50%)
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Higher Growth in GP vs Revenue (50%) 55% YTD Cash FY23 Lower 0.15% than 22 Record Growth in Gross Profit Importation Margins (1.9bn) Non-Pharma Distribution Margins 12
Slide 13: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 14: Exponential growth in EBITDA
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Exponential growth in EBITDA Operational Optimization & Digitalization Reflected on Op- 101% exp % of Sales (3.2% 23 vs 4% 22) Growth in EBITDA EBITDA Doubled with 1bn Q3 YTD vs (1bn) 0.5bn YTD Q3 22 14
Slide 15: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 16: Positive & Significant Growth in NPM
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Positive & Significant Growth in NPM Despite dramatic rise of interest rate by 118% compared to Jan 22 46% Growth in Net Profit Plus, inflation impact on OPEX (174mn) 16
Slide 17: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 18: Decrease in Debt Ratio from 35% to 25%
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Decrease in Debt Ratio from 35% to 25% (YoY) 75% of total assets are free financed 25% Debt Ratio Further supporting bottom line (27% â vs 22) figures 18
Slide 19: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 20: Maintaining healthy levels of CCC
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Maintaining healthy levels of CCC Despite exceptional revenue growth by 50% 0.7 Drop by 8 days vs 9M, 2022 Days of cash conversion (vs 8.7) 20
Slide 21: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 22: Successful ERP roll-out
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Successful ERP roll-out Ongoing stabilization phase Integrating business cycles to 100% further optimizing operations Roll-out 22
Slide 23: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 24: Diversifying portfolio with new business lines
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results Diversifying portfolio with new business lines Higher margins Great synergy achieved further empower core business 3 Non-Core business Performance 24
Slide 25: ISP Strategy 2023-2024: Q3, 2023 Highlights
ISP Strategy 2023-2024: Q3, 2023 Highlights Key highlights on 9 months’ results 50% 55% 101% 46% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit 9M Revenue (1.9bn) (1bn) (174mn) (24.3bn) 25% 0.7 3 Debt Ratio 100% Non-Core business Days of cash Roll-out (27%
Slide 26: Sustainable Growth
ISP Strategy 2023-2024: Q3, 2023 Highlights Sustainable Growth Sustainable Growth Differentiation Working Collaterals Capital (Held for Sale) Enhancement Ibnsina Pharma’s Sustainable Strategic Pillars Growth Investment OPEX Diversification Optimization Digitalization 26
Slide 27: Market Share: Total Market Value Performance
Market Structure – 9M, 2023 Market Share: Total Market Value Performance Pharmacies Hospitals Wholesale Ibnsina Pharma continues its successful run; retaining leadership position 50% 33% 17% among competitors despite challenges. Market Share Market Share ISPH vs Market ISPH vs Market 9M, 2022 vs 9M,
Slide 28: Revenue Analysis: Growth & Market Share
Revenue Growth Revenue Analysis: Growth & Market Share 9M, 22 vs 9M, 23 Ibnsina Pharma plans to close 2023 just shy of 35bn EGP Revenue 50% 10 2021 Revenue: 22.3bn FY, 2022 Revenue: 22.8bn 9M 2023 Revenue: 24.3bn 9M Revenue: 16.2bn 9M Revenue: 16.2bn 9 9.3 160% 8 8.0 7 7.0 6 6.6 110% 6.1 5.8 5.7 5 5
Slide 29: Revenue Analysis: Growth Across All Business Units
Revenue Growth Revenue Analysis: Growth Across All Business Units 9M, 22 vs 9M, 23 Addressing customer segments individually, modifying internal capacity to cater segment’s needs & potential 50% 9.3 Segments 9M Growth 8.0 Pharmacies 7.0 6.6 32% 6.1 5.8 5.7 Wholesale 5.5 5.5 4.33 5.1 4.9 3.66 80% 3.2
Slide 30: Revenue Analysis: Subsidiaries & Non-core Business
Other Revenue Growth Revenue Analysis: Subsidiaries & Non-core Business 9M, 22 vs 9M, 23 Diversifying portfolio for sustainability and higher growth potential 128% Other Revenues QoQ Growth: 127% Data Services 70 Over-printing 67 Marketing Digital 11 17 43 36 31 35 28 34 20 31 27 21 26 19 22 19 9 11
Slide 31: Market Anatomy: Segments Performance
Market Anatomy: Segments Performance Ibnsina Pharma growth is in line with market dynamics, growing wholesale segment 80% in the first 9 months of 2023 Market Anatomy – Segments’ Contribution ISP Segment Contribution to Total Revenue 2020 – 2023 (9M) 2020 – 2023 (9M) - (Market Data) 2023 29% 2022 20
Slide 32: Gross Profit: Gross Profit Analysis
Gross Profit Growth Gross Profit: Gross Profit Analysis 9M 22 vs 9M 23 Optimize gross profit due to success in managing CTG, GDT & Supplier Deals 55% Gross Profit Optimization (YTD) Cash Discount Given (Millions) Gross Profit Value (Millions) 8 0 0.15% 2.92% 2 .9 0 % 7 0 2.77% 2 .8 0 % 6 0 2 .7 0 %
Slide 33: ISPH Strategy 2023-2024: OPEX Optimization
ISPH Strategy 2023-2024: ISP Strategy OPEX Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s OPEX Strategic Pillars Optimization Working Diversification Capital & Debt Optimization Digitalization 33
Slide 34: Operational Productivity: Optimization
Operational Productivity: Optimization Optimizing key operational metrics, reflecting positively on EBITDA 851 71 7521 Optimization of Vehicles | Sites | FTE’s Revenue Per Vehicle 4 0 Revenue Per Site 5 0 % Revenue Per FTE 46% 37% 4 4 0 % 3 0 47% 5 0 % 3 5 0 4 5 % 3 5 % 4 0 % 4 5 % 3 3 0 2 5 4 0 % 3
Slide 35: OPEX Optimization: Optimization
OPEX Optimization: Optimization New lowest Opex to Sales recorded in Q3 2023 with a steady decline against rising EBITDA margin OPEX vs EBITDA (% of Sales - QOQ) 4.5% 4.3% 4.0% 4.1% 4.0% 4.0% 3.7% 3.5% 3.6% 3.4% 3.1% 3.2% 2.7% 2.6% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 OPEX to Sale
Slide 36: ISPH Strategy 2023-2024: Income Statement
ISPH Strategy 2023-2024: ISP Strategy Income Statement Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Income Strategic Pillars Statement Working Diversification Capital & Debt Optimization Digitalization 36
Slide 37: Income Statement: 9M 22 vs 9M 23
Income Statement: 9M 22 vs 9M 23 ISP Consolidated 46% growth in NP collectively despite set-backs in subsidiaries performance and due to the solid position ISP Standalone of Ibnsina Pharma AIM Consolidated Gross Sales (Growth: 50%) Gross Profit (Growth: 55%) OPEX (Growth: 23.1%) EBITDA (Growth: 101%
Slide 38: ISPH Strategy 2023-2024: Working Capital & Net Debt Optimization
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Working Capital & Strategic Pillars Debt Optimization Working Diversification Capital & Debt Optimization Digitalization 38
Slide 39: Working Capital Optimization: Exceptional Relative Performance
Working Capital Optimization: Exceptional Relative Performance Maintaining a healthy CCC further supports spontaneous financing and free cash flow. 8.0 CCC CCC CCC CCC CCC CCC 9.4 Days 8.7 Days 3.7 Days 2.3 Days 0 Days 0.7 Days 40 40 39 39 38 37 127 127 131 122 121 123 96 96 96 84 83 86 S1 - 2022 9M
Slide 40: Net Debt Optimization: Net debt maintained at same level despite growth
Net Debt Optimization: Net debt maintained at same level despite growth Net Finance Bearing Debt to Equity at last 3 quarters levels despite recent Equity multiple adjustments & Revenue growth Net Debt (mn) 3,597 3,805 3,241 3,852 3,526 4,013 Equity (mn) 1.376 1.246 1.260 1.332 1.368 1.410 Net Debt
Slide 41: Cash Flow Statement: 9M, 2023 Financial Figures
Cash Flow Statement: 9M, 2023 Financial Figures 300mn enhancement in cash flow from operations QoQ; leveraged by extended supplier payment Cash Flow Statement In EGP 9M 23 9M 22 Used from Provisions (318,769) (689,379) Cash flow from operating activities : (Paid) from financing interest (690,085,575
Slide 42: ISPH Strategy 2023-2024: Investment Diversification
ISPH Strategy 2023-2024: ISP Strategy Investment Diversification Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Non-Core Ibnsina Pharma’s Strategic Pillars Business (Diversification) Working Investment Capital & Debt Diversification Optimization Digitalization 42
Slide 43: Investment Diversification: Non-pharmaceutical Distribution
Investment Diversification: New Business Lines Ibnsina follows a strategic path to diversify portfolio; introducing 2 new business lines with great prospects and very high synergy with ISP’s core business 1 0 4 4 0 % Non-pharmaceutical Distribution 9 0 93 90 3 6 0 % Overview on Business 85 82 82 8 0
Slide 44: Investment Diversification: Medical Promotion
Investment Diversification: New Business Lines Ibnsina follows a strategic path to diversify portfolio; introducing 2 new business lines with great prospects and very high synergy with ISP’s core business Medical Promotion Total Medical Promotion Revenue (Scientific Office Outsourcing) 2 5 2 0 % 34%
Slide 45: Ramp Logistics Review: P&L Analysis – Challenges & Actions
Ramp Logistics Review: P&L Analysis – Challenges & Actions Positive revenue growth against negative EBITDA & Net Profit with prospected positive bottom line by year end P&L - 2023 Full Year Outlook P&L - 2023 Full Year Outlook Results P&L - 2023 Full Year Performance – By Quarter 140 Revenue 40 4 1
Slide 46: ibnsinapharma
ibnsinapharma