Wuxi Apptec Co., Ltd. Class A · SSE:603259
Wuxi Apptec Co., Ltd. Class A — FY2023 Earnings Presentation
27 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, Mar 19, 2024
Slide 1: WuXi AppTec 2023 Annual Results
WuXi AppTec 2023 Annual Results March 19, 2024 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and Non-IFRS Financial Measures
Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe
Slide 3: Agenda
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Business Outlook 3 Note: Unless otherwise stated, all financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB. All net profit disclosed in this
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Revenue Surpassed RMB40 Billion in 2023; Adjusted Non-IFRS Net Profit Exceeded 10 Billion
Revenue Surpassed RMB40 Billion in 2023; Adjusted Non-IFRS Net Profit Exceeded 10 Billion for the First Time Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +2.5% excluding COVID-19 +25.6% +15.5% commercial projects 39.4 40.3 10.9 9.4 2022 2023 2022 2023 Net Profit 1 Net Profit After De
Slide 6: 2023 Business Highlights
2023 Business Highlights Enable Customers to Grow Together Build Platform & Improve Efficiency 1,200+ new customers, 6,000+ active customers 32 global sites & branch offices Backlog +18%↑ YoY excluding COVID-19 commercial 41,116 total employees, including 37,851 projects, among which: TIDES backlog
Slide 7: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Execute Long-Tail Strategy Increase Customer Strong, Loyal & & Increase Support to Conversion to Sustain Expanding Customer Base Large Pharma Growth Revenue breakdown Revenue breakdown Revenue breakdown Existing clients Top 20 global pharma cli
Slide 8: Stability and Resilience of the Company's Financial Performance
Diversified Revenue Streams from Customers Across Regions Ensure the Stability and Resilience of the Company’s Financial Performance China Europe 7.37Bn，+1% 4.70Bn，+12% Revenue contribution: 18% US Revenue contribution: 12% 26.13Bn， excluding COVID-19 commercial projects + 42% Revenue contribution:
Slide 9: ESG Leading Position Further Enhanced in Global ESG Rating Systems
ESG Leading Position Further Enhanced in the Global ESG Rating Systems Committed to the Science Based Targets initiative (SBTi) in Dec. 2023 SBTi Committed in Dec. 2023 Consecutive “A-” rating in CDP Consecutive “AA” ratings Climate Change in 2022-2023, in 2021-2023 first “A-” rating in CDP Water Se
Slide 10: 2. Business Highlights
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Slide 11: WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth
WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth, with Continued Expansion in TIDES Drug Discovery (R) Generating Strong Growth of Development Continued Expansion of Financial Performance Downstream Opportunities and Manufacturing (D&M) New Modalities (TIDES) ⚫ Revenue grew 1.1%
Slide 12: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline driven by “Follow the Molecule + Win the Molecule” Strategies “R” 2023 Newly 420,000+ Compounds 1 Added Molecules in Total 1,255 1,225 2,748 Preclinical & Phase I 25 326 Phase II 2 66 Phase III 20 Commercial & 3 Phase III Projects Added in 2023 61 Commercial 12
Slide 13: TIDES (Oligo and Peptide): Fast Growing Pipeline and Strengthening Capabilities
TIDES (Oligo and Peptide): Fast Growing Pipeline and Strengthening Capabilities Bring in the Next Wave of Accelerated Growth Oligo and Peptide “D&M” Molecules Solid Phase Peptide Synthesizer Total Reactor Volume >5x 32,000 # of molecules Liter 267 +41% 189 99 6,000 39 4,000 2,000 500 2020 2021 2022
Slide 14: WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leadership
WuXi Testing: Drug Safety Evaluation Service & SMO Maintain Leadership Position and Drive Steady Growth Financial Performance Lab Testing Services Clinical CRO & SMO ⚫ Revenue grew 14.4% YoY to ⚫ Revenue of lab testing services grew 15.3% YoY to 4.78bn, ⚫ Revenue from clinical CRO and SMO grew 11.8%
Slide 15: WuXi Biology: New Modalities Business Drives Growth
WuXi Biology: New Modalities Business Drives Growth; WuXi Biology Platform Continues to Generate Downstream Opportunities Financial Performance Discovery Biology Comprehensive Screening Platform ⚫ Revenue grew 3.1% YoY to ⚫ One of the largest discovery biology enabling ⚫ Early discovery screening pl
Slide 16: WuXi ATU: CTDMO Business Model Drives Growth
WuXi ATU: CTDMO Business Model Drives Growth Financial Performance Pipeline & Progress of Commercial Projects ⚫ Revenue grew 0.1% YoY to ⚫ Focused on improving the integrated CTDMO platform. By end of 2023, we provided development, testing & manufacturing 1.31bn services for 64 projects, including 1
Slide 17: WuXi ATU: Advancing Pipeline on Our Globally Integrated CTDMO Platform
WuXi ATU: Advancing Pipeline on Our Globally Integrated CTDMO Platform Testing CAR-T | TIL | MSC Cells AAV | LVV | TESSA US | EU | CN Provided integrated 49 Preclinical & Phase I CTDMO services globally to product development 9 Phase II ✓ 2 projects are in BLA 5 Phase III preparation stage 2nd comme
Slide 18: WuXi DDSU: First Year to Receive NDA Approval of New Drugs
WuXi DDSU: the First Year to Receive NDA Approval of New Drugs Developed for Customers; Breakthrough to Receive the First Royalty Income Financial Performance NDA Approval Project Pipeline ⚫ Revenue declined 25.1% YoY ⚫ In 2023, 3 new drugs developed for our customers ⚫ In 2023, supported customers
Slide 19: 3. Financial Performance
3. Financial Performance 19
Slide 20: Financial Performance
Financial Performance Revenue Adjusted Non-IFRS Gross Profit Adjusted Non-IFRS GPM RMB MM RMB MM 39.8% 40.0% 40.3% 38.0% 38.7% 42.0% +2.5% +25.6% excluding COVID-19 commercial projects 39,355 40,341 +11.2% 15,228 16,938 22,902 16,535 8,704 9,614 12,872 6,670 3,830 5,155 2018 2019 2020 2021 2022 2023
Slide 21: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +1.1% +36.1% +14.4% excluding COVID-19 commercial projects 28,850 29,171 6,540 5,719 2022 2023 2022 2023 WuXi Biology WuXi ATU WuXi DDSU +3.1% +0.1% -25.1% 2,475 2,553 1,308 1,310 970 726 2022 2023 2022 2023 2022 2023 21 Note: If the sum of the data
Slide 22: Segment Adjusted Non-IFRS Gross Profit
Segment Adjusted Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing +10.8% +20.3% 41.2% 45.1% 36.7% 38.6% 13,168 11,882 2,527 2,101 2022 2023 2022 2023 WuXi Biology WuXi ATU WuXi DDSU +6.8% -9.5% 40.9% 42.4% 2022 2023 30.2% 36.5% 1,013 1,082 -77 293 265 -125 -5.9% -9.6% 2022 2023 2022 2023 22
Slide 23: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million 2022 2023 Net profit attributable to the owners of the Company under PRC 8,814 9,607 GAAP difference 1 - 1,083 Net profit attributable to the owners of the Company under IFRS 8,814 10,690 Add: RMB MM Share-based compensation expenses 684 622 +15.5% Issuance e
Slide 24: Continued Growth of FCF Driven by Business Growth & Operating Efficiency
Continued Growth of FCF Driven by Business Growth & Operating Efficiency 2023 Operating Cash Flow Up 23.6% YoY Due to FX Impact & Efficiency Improvement; Constantly Improve Asset Utilization RMB MM Capital Expenditure 12,641 Operating Cash Flow 9,966 10,230 6,936 5,517 4,379 3,828 3,031 2,249 2,532
Slide 25: 4. Business Outlook
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Slide 26: Proposed U.S. Legislation
Proposed U.S. Legislation WuXi AppTec was named in proposed legislation (the “Draft Bill”) introduced to the U.S. House of Representatives and the U.S. Senate in Jan 2024. The preemptive designation of WuXi AppTec as a named “biotechnology company of concern” may result in certain impact on the Co
Slide 27: 2024 Outlook
2024 Outlook Despite uncertainties in the external environment, revenue expects to reach RMB 38.3-40.5 1 billion in 2024, and maintain positive growth of 2.7-8.6% excluding COVID-19 commercial projects Continue to improve operating efficiency. Adjusted non-IFRS NPM in 2024 expects to 2 remain at a s