Sun Pharmaceutical Industries Limited · NSE:SUNPHARMA
Sun Pharmaceutical Industries — Investor Presentation (January 2013)
38 slides from Sun Pharmaceutical Industries's investor presentation, January 2013
Slide 1: Creating Lasting Value - Investor Presentation January 2013
Creating g Lasting g Value e Investor Presentation- January 20 013 BSE:524715 • NSE:SUNPHARMA Bloomberg: SUNP@IN • Reuters: SUN.BO www.sunpharma.com
Slide 2: Disclaimer
Disclaimer Except for the historical information contained he erein, statements in this presentation and the subsequent discussions, which include word ds or phrases such as “will”, will , “aim”, aim , “will will likely result”, “would”, “believe”, “may”, “expect””, “will continue”, “anticipate”, “e
Slide 3: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 3 Creating Lasting Value - Invvestor Presentation
Slide 4: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 4 Creating Lasting Value - Invvestor Presentation
Slide 5: Revenue Composition
Revenue Composition p 2011-12 Annual Gross Sales : Rs 81,173 millio on 5 Year CAGR 29% India Branded Generics 36% 5 Year CAGR 20% APIs 5 Year CAGR 14% 7% 14% US Formulations International 5 Year CAGR 46% Generics 5 Year CAGR 41% 43% Finished Dosage F International s sales 92% sales 62% 5 year CAGR 3
Slide 6: Creating Value, Continuously
Creating Value, Continuo ously… ‘83 ‘13 1983 1995 2004 2010 2012 Began with B ith 5 products First API USD 350mn Acquired Dusa Plant Panoli FCCB raissed 1993 Acquired 1997 Taro 2011 2007 1994 $7.5Mn $7 5Mn invested First Research Centre in Caraco SPARC, Baroda JV for Emerging Demerger Markets IPO -
Slide 7: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 7 Creating Lasting Value - Invvestor Presentation
Slide 8: Strategy and Approach
Strategy and Approach Create sustainable revenue streams Seek cost leadership • Focus: Chronic therapies • Vertical integration : Development through • Differentiation: Technically Manufacturing g (API ( and complex products Finished Dosage) to Marketing • Speed to market • Optimize operational cost
Slide 9: Growing Steadily
Growing Steadily Consistent top-line and bottom-line growth; (Figures in Rs billion) continuing the trend despite increasing size Net Sales EBITDA 32 2.5 N tP Net Profit fit 25.9 80.1 7.8 21.4 6.7 6.8 1.9 1.7 1.7 0.8 0.5 96-97 01-02 06-07 11-12 96-97 01-02 06-07 11--12 96-97 01-02 06-07 11-12 9
Slide 10: Sustained Profitability
Sustained Profitability Superior business model Margins consistently higher than peers* Gross Margin EBITDA Margin Net Margin 90% 60% 60% 80% 32% 80% 41% 40% 40% 70% 20% 20% 60% 0% 0% 50% -20% 20% 40% -20% -40% 07-08 08-09 09-10 10-11 11-12 07 08 08-09 07-08 08 09 09-1 09 10 10-11 10 11 11-12 11 12
Slide 11: Successful At Acquisitions
Successful At Acquisition ns Acquired 16 high potential yet under-perform ming businesses*; successful turnarounds 10,000 45 8 Early y Acquisitions q s 8,000 36 6,000 27 4,000 18 2,000 9 0 0 95-96 96-97 97-98 98-99 99-0 00 00-01 01-02 02-03 03-04 Net Sales (MINR) Operating Margin(%) M Operating Prof
Slide 12: Key Deals & Rationale
Key Deals & Rationale Year Deals Country Rationale Dermatology company, FDA approved 2012 Acquired DUSA Pharmaceuticals, Inc. US facility at Wilmington Wilmington, MA. MA 2011 100% ownership of Caraco US Privatization Develop and commercialize technology 2011 Formation of Sun-MSD JV Emerging Markets
Slide 13: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 13 Creating Lasting Value - Invvestor Presentation
Slide 14: India Branded Generics: Strong Base
India Branded Generics : Strong Base • Market Share : 4.7%* Th Therapywis ise Break-up B k Others 7% • Leadership in chronic Others Neuro-Psychiatry a Opthalm po ogy Opthalmology Opt mology gy 5% y - 5% 27% segment; 8% Neuro Psychiatry Neuro-Psychiatry Antiasthamatic & 28% Top 3 in over 50% of Antia
Slide 15: Relentless Customer Focus
Relentless Customer Foc cus Therapy focused marketing Strong increase in prescription and • 3,000+ 3 000+ sales representatives sales market share covering 140,000 specialist doctors 200 150 100 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Cipla p Ranbaxyy Sun Cadila Lupin pn DRL T
Slide 16: Therapy Focused Marketing
Therapy Focused Marketting Delivering promotional message to specia alty customers. Gastroenterology Orthopedics Gastroenterology, Card diology Diabetology diology, Psychiatry, Neurology Ophthalmology Rheumatology, Asthma, Oncology Fertility, Gynecology, Gynecology Dermatology gy COPD Urology gy 16
Slide 17: Preferred Choice of Doctors
Preferred Choice of Docttors Leadership in key therapeutic areas* Top 10 Brands contribute 15% of India Sale Specialist Jun ‘07 Jun ‘12 Brand Name Therapy area Psychiatrists 1 1 Proton pump inhibitor/ Pantocid N Neurologists l i t 1 1 antiulcerant Cardiologists 1 1 Glucored Group Oral antidiabetic O
Slide 18: US Generics
US Generics Integrated generic manufacturer with flexibility for manufacture onshore / Approv vals offshore Therapy wise w summary Skin, 92 Caraco Pharmaceutical Laboratories Ltd. CNS, 63 The 100% owned US ggenerics subsidiary, y, CVS, 24 markets own and Sun Pharma ANDAs Pain, 17 Allergy, 19 S Sun P
Slide 19: ANDA Pipeline: Significant ramp up
ANDA Pipeline : Significa ant ramp up Products Filed and Approved Status 377 395 400 As of Sept 12, ANDAs for 136 products await approval 350 (including 17 tentative approvals) 300 225 259 250 Sun Pharma 200 91 Products pending 177 (with 9 tentative approval) 150 100 Caraco 69 29 Products pending 50
Slide 20: Europe Generic Markets
Europe Generic Markets Focused key markets • Working on complex generic products, including injectables • Filings g from Indian site Focus Countries An API and Finished Dosage manufacturing site in Hungary with controlled substance capacity 20 Creating Lasting Value - Invvestor Presentation
Slide 21: International Branded Generic Markets
International Branded Generic G Markets Less Regulated Markets Rep plicating the speciality template • Product basket width and • 40 0 countries technology based products as 00 strong local sales force promotes • 70 growth drivers brrands to doctors CIS Countries China Mexico Myanmar B il Brazil S i
Slide 22: Leveraging through Partnership
Leveraging through Parttnership • Sun Pharma and Merck establish a Joint Venture for Emerging Markets excluding g India • JV to bring new combinations and formula ations of incrementally innovative, branded generics to market • O Opportunity t it tot use SPARC P Proprietary i t D Deelivery li Techno
Slide 23: Speciality API
Speciality API High Margin Regulated Markets Strong regulatory capability • Business largely with end users in • 229 DMF / CEP filed regulated g markets • 163 approved • Over 160 speciality APIs across 8 plants (including Taro) 23 Creating Lasting Value - Invvestor Presentation
Slide 24: Strong Regulatory Capability
Strong Regulatory Capab bility International level quality processes and docu umentation 250 225 229 206 200 155 163 154 150 133 127 90 89 100 8 81 40 50 0 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Sept-12 DMF/CEP Filed DMF/CEP Approved 24
Slide 25: Integrated product dev and manufacturing network
Integrated product dev and manufacturing m network Vertically integrated network across four conttinents enabling high quality, low cost and a quick market entry across the geograph hies Ontario (Canada) Tiszavasvari T Detroit ( (Hungary) Bryan Jammu Tennessee Cranbury Sikkim Plant Isra ael Banglade
Slide 26: Finished Dosage Manufacturing
Finished Dosage Manufa acturing 16 Manufacturing sites worldwide ld id • India : 6, US : 3, Canada : 1 • Capacities available for a variety of finished dosage Tablets / Injectables / Sterile Capsules Vials Dry powder Semisolids Ampoules Eye drops Pre-filled Syringes MDI Liquids q Gels Aerosols Suppo
Slide 27: API Manufacturing
API Manufacturing 8 World class locations with all sites ISO 14001, ISO 9002 approved • India : 5,, Israel : 1,, US : 1,, Hungary g y:1 Over 25 API processes scaled up annually Panoli & Ahmednagar g Hungary & (both India) Tennessee (US) API • International regulatory Key Plants • Controlled substanc
Slide 28: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 28 Creating Lasting Value - Invvestor Presentation
Slide 29: Research and Development
Research and Development • Generic R&D spend around 6% of net sa ales • Strong research teams in generics, finish hed dosage development, biological support, chemistry • 4 R&D centers with about 800 scientists Mumbai Immediate term Balanccing Medium term ANDA DMF, ANDA, DMF Products P d t forf India
Slide 30: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 30 Creating Lasting Value - Invvestor Presentation
Slide 31: Corporate Governance
Corporate Governance Our p philosophy p y on corporate p governance g envisages g working towards high levels of transparency, accountability and consistent value systems across all facets of operattions Chairman Independent Audit Sun Pharma Directors Committee Israel Makov K ki Mistry Keki Mi t H H
Slide 32: Agenda
Agenda 5 4 3 2 Management 1 & Governance Research & Strategy & Business Development Revenue Operation ns Financials Approach Composition Growth Geographies History & API, Finish hed Profile Key Dosage & Acquisitions Manufactu uring 32 Creating Lasting Value - Invvestor Presentation
Slide 33: Shareholding Pattern
Shareholding Pattern as on Sept 30, 2012 Individuals and Others • Rs 1,000 Invested in 6% Bodies Corporate the 1994 IPO is 5% Financial Inst / Banks currently worth more 4% than Rs. 325,000 Mutual Funds 2% FIIs / Foreign Banks 20% Promoter and promoter group 64% • Total shares outstanding : 1,035 mi
Slide 34: Financials
Financials Market Capitalisation Rs. 760 billion / $ 13.9 billion* Figures in Rs million 2007-08 2008-09 2009-10 2010-11 2011-12 P&L Summary Net Sales 33,565 42,723 40,075 57,229 80,057 Gross Profit 26,344 34,154 29,096 42,577 63,644 EBITDA 15 511 15,511 18 639 18,639 13 628 13,628 19 518 19,518 32
Slide 35: Financial Ratios
Financial Ratios 2007-08 2008-09 2009-10 2010-11 2011-12 Growth (%) Net Sales 57.1 57 1 27.3 27 3 (6.2) (6 2) 42.8 42 8 39.9 39 9 Gross Profit 69.0 29.6 (14.8) 46.3 49.5 EBITDA 130.7 20.2 (26.9) 43.2 66.6 Net Profit 89 6 89.6 22 2 22.2 (25 7) (25.7) 34 4 34.4 42 5 42.5 Margins (%) Gross Margin 78.5
Slide 36: Key Financials Q2 FY13
Key Financials Q2 FY13 Q2 FY13 Q2 FY12 CHA ANGE H1 FY13 H1 FY12 CHANGE FY1112 Net Sales 26,572 18,946 40% 53,154 35,303 51% 80,057 Gross Profit 21 687 21,687 15 307 15,307 42% 43 245 43,245 27 594 27,594 57% 63 644 63,644 Gross Margin 82% 81% 81% 78% 79% EBITDA 11,685 7,840 49% 23,853 13,315 79% 32,
Slide 37: Guidance for FY13
Guidance for FY13 • Sales growth : 30-32% over FY12 at constant exchange rate • R&D : 6 6-8% 8% of sales • Capex : Rs 500 crore • ANDAs for 25 products to be filed 37 Creating Lasting Value - Invvestor Presentation
Slide 38: For updates and specific queries, please visit www.sunpharma.com
For updates and specific queries, please p visit www.sunpharma.com or feel free to contact Mira Desai Nimish Desai Tel : +91 22 6645 5645, Ext 606 Tel : +91 22 6645 5645, Ext 717 Tel Direct : +91 22 66455606 Tel Direct : +91 22 66455717 Mobile b l : +91 98219 23797 M bil : +91 Mobile 91 98203 30182
Sun Pharmaceutical Industries — Investor Presentation (January 2013) on 6ix