Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q3 FY2020 Earnings Presentation
23 slides from Neuland Laboratories's earnings presentation, 2020
Slide 1: Investor Presentation Q3FY20
Investor Presentation Q3FY20 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved.
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Business Overview
Business Overview © 2020, Neuland Laboratories Limited. All Rights Reserved
Slide 4: Company Overview
Company Overview Legacy Scale Capability Reach 35+ years in pharma 3 regulatory approved Portfolio of 75+ 80+ countries of with robust quality manufacturing products across 10 presence systems, regulatory facilities with 731 KL therapeutic categories and compliance capacity framework 75% of revenues
Slide 5: Our Journey
Our Journey Laying Deepening our On course to Strong Foundation capabilities profitable growth Development Expansion Execution 01 02 03 1984-2003 2004-2012 2013-Today ▪ Incorporation in 1984 and IPO ▪ Investments in capacity ▪ Strategic alignment of business in 1994 expansion towards niche APIs and
Slide 6: Business Verticals
Business Verticals Work executed exclusively for the customers on Mature APIs, typically with products at various phases high competition in the API of their life-cycle Custom space Manufacturing Prime Solutions (CMS) Prime APIs and Specialty APIs collectively form Specialty Generic Drugs Substance
Slide 7: Generic Drug Substance(GDS)
Generic Drug Substance(GDS) Prime APIs Capability Business Approach Strategy Forward ▪ 3 US FDA and EU GMP ▪ Work on molecules ▪ Maintain leadership compliant either with a business position in key manufacturing leadership approach molecule facilities or partnership with ▪ Work on process ▪ Collecti
Slide 8: Custom Manufacturing Solutions(CMS)
Custom Manufacturing Solutions(CMS) Services Business Approach Strategy Forward ▪ Manufacturing API to ▪ Local presence in US ▪ Add depth in technical customer and Japan with capabilities specifications technical as well as ▪ Investment in QBD ▪ Designing and commercial labs, process developing empl
Slide 9: Business Mix
Business Mix Revenue by Verticals Revenue by end territory 3% 6% 7% 11% LATAM 23% 14% 20% Japan 3% 29% ROW 3% 25% 9% 27% 20% Europe 57% North 60% 54% 54% America 47% 22% FY-16 FY-17 FY-18 FY-19 India OTHERS CMS NICHE PRIME 6%
Slide 10: Capabilities
Capabilities © 2020, Neuland Laboratories Limited. All Rights Reserved
Slide 11: Neuland Manufacturing Facilities
Neuland Manufacturing Facilities U1, Bonthapally, U2, Pashamylaram, U3, Gaddapotharam, Unit Hyderabad 222.5 KL Hyderabad 310.2 KL Hyderabad 197 KL Year of 1986 1994 2017* establishment Employee 399 321 140 strength Mirtazapine, Sotalol Hcl, Levetiracetam, Levofloxacin, Ciprofloxacin Hcl, Entacapone,
Slide 12: One state of art R&D centre
One state of art R&D centre R&D Facility, Hyderabad Infrastructure • 11 Development Labs • 60 Fume hoods • Analytical Lab • Kilo Lab dedicated for Scale up • Dedicated Labs for Peptides • Separate facility for D2 analogues Significant R&D Achievements: • Several NCE APIs added in NDA or commercial s
Slide 13: Compliance Framework
Compliance Framework Quality Control EHS ▪ Quality Control facilitated with Wet ▪ Hazard and EHS Impact studies regularly Chemistry, Instrumentation & Microbiology conducted Laboratories ▪ 24X7 occupational health center with ▪ Equipped with sophisticated instruments ambulance facility like HPLCs, G
Slide 14: Regulatory Filings
Regulatory Filings 30 Filings with 21 18 Japanese DMF China DMF filed Health Canada filed 54 DMFs with USFDA 213 18 18 ROW filings including Turkey, filings with filings with TGA KFDA Korea Mexico, Brazil etc ~453 EUDMF filings across Germany, 21 CEPs Received for different 846+ France, Poland, prod
Slide 15: Financials
Financials © 2020, Neuland Laboratories Limited. All Rights Reserved
Slide 16: Standalone Financial Performance
Standalone Financial Performance Standalone Q3FY20 (Y/Y) Standalone Q3FY20 (Q/Q) Standalone 9MFY20 (Y/Y) ▪ Total income was Rs. 5,729.5 mn ▪ Total Revenue was Rs. 2,046.4 ▪ Total Revenue was Rs. 2,046.4 as compared to Rs. 4,963.3 mn, an mn as compared to Rs. 1,718.7 mn as compared to Rs. 1,867.9 inc
Slide 17: Key Operating Metric
Key Operating Metric YoY Analysis Quarter on Quarter Movement 5% 7% 7% 8% 6% 7% 16% 18% 19% 24% 26% 24% 32% 23% 23% 18% 18% 25% 47% 51% 51% 50% 51% 42% Q3 FY19 Q3FY20 Q4 FY 19 Q1 FY20 Q2 FY20 Q3 FY20 Prime Speciality/Niche CMS Others Prime Speciliaty/Niche CMS Others
Slide 18: Key Operating Metric
Key Operating Metric CMS Business Depth 6 13 9 9 13 12 21 20 23 4 5 7 6 4 4 19 4 4 16 13 3 7 9 8 3 5 5 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Clinical Commercial *- Quantities taken for validation and launch are considered as Commercial
Slide 19: No of CMS active projects increasing
No of CMS active projects increasing Q3 FY20 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 4 5 9 6 40 Intermediate 7 3 2 5 8 9 34 Grand Total 19 7 6 10 17 15 74 Q2 FY20 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 11 4 6 6 4 6 37 Intermediate 1 3 1 5 11 10 3
Slide 20: Historical Financials
Historical Financials Financial Performance (INR Cr) Current Ratio (x) 1.4 1.4 1.2 1.2 1.2 670 100 2016 2017 2018 2019 9M 600 573 573 (FY20) 534 510 Debt to Equity (x) 400 0.5 0.5 50 0.3 0.2 0.3 2016 2017 2018 2019 9M 200 (FY20) Fixed Asset Turnover (x) 0 0 FY16 FY17 FY18 FY19 9M (FY20) 4.3 3.2 2.9
Slide 21: Future Strategy
Future Strategy © 2020, Neuland Laboratories Limited. All Rights Reserved
Slide 22: Growth Strategy for Business
Growth Strategy for Business Business Scale Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS and CMS accelerate business growth business Chemistry Relationships Deploy advanced Leverage on Long – chemistry skills to add standing relationships with
Slide 23: Thank you for viewing this presentation.
Thank you for viewing this presentation. For further information contact: IR Desk Diwakar Pingle Neuland Labs Christensen IR +91 40 3021 1600 +91 22 4215 0210 ir@Neulandlabs.com dpingle@christensenir.com Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved.
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