Marksans Pharma Limited · NSE:MARKSANS
Marksans Pharma — Q1 FY2022 Earnings Presentation
44 slides from Marksans Pharma's earnings presentation, Aug 11, 2021
Slide 1: Investor Presentation Q1FY22
Investor Presentation Q1FY22 | A ugust 11, 2021 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reser ved.
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may
Slide 3: Contents
Contents 1 Q1FY22 Highlights 2 Company Overview 3 Business & Opportunity by Market Size 4 5 Year Performance Review 5 Key Focus Areas 6 Leadership Team 7 Investment Rationale 8 ESG & Corporate Governance 3
Slide 4: Management Commentary Mark Saldanha
Management Commentary Mark Saldanha M A N A G I N G D I R E C TO R A N D C E O “ We recorded a sales growth of 5.4% led by increased penetration in regulated markets despite pandemic induced logistics issues. We drove gains from operating efficiencies and a debt free balance sheet resulting in our b
Slide 5: Q1FY22 Highlights
® Marksans Pharma Ltd. Q1FY22 Highlights
Slide 6: Q1FY22 Highlights
Q1FY22 Highlights Revenues EBITDA PBT PAT EPS Credit Rating ₹ 349.0 Cr ₹ 77.3 Cr ₹ 74.8 Cr ₹ 62.6 Cr ₹ 1.5 IND A 10.5% YoY 21.8% YoY 26.8% YoY Upgraded 5.4% YoY 25.9% YoY 110 Bps 290 Bps 270 Bps from IND A- Financial Highlights Business Highlights Preferential Issue • Operating Revenue was ₹ 349.0 c
Slide 7: Financial Highlights – Profit and Loss Statement
Financial Highlights – Profit and Loss Statement Particulars (₹ cr.) Q1FY22 Q4FY21 Q1FY21 YoY Operating Revenue 349.0 330.2& 331.2 5.4% Gross Profit 186.7 203.5 191.6 -2.6% Gross Profit Margin % 53.5% 61.6% 57.9% -440 bps EBITDA 77.3 95.4 70.0 10.5% EBITDA Margin % 22.2% 28.9% 21.1% 110 bps Finance
Slide 8: Consistent Performance on yearly basis
Consistent Performance on yearly basis Operating Revenue Gross Profit (₹ cr.) & Gross Profit Margin % (₹ cr.) 60.5% 61.6% 57.9% 54.1% 53.5% 216.9 & 331.2 356.5 358.4 330.2 349.0 191.6 192.8 203.5 186.7* Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 EBITDA (₹ cr.) & EBITDA Mar
Slide 9: Financial Metrices
Financial Metrices ROCE ROE 28.9% 31.6% 32.6% 30.7% 24.5% 26.3% 25.4% 27.0% 20.8% 22.8% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Net Debt to EBIDTA (x) Fixed Asset Turnover Ratio (x)* 4.7 & -0.4 4.5 4.4 -0.5 4.3 -0.6 -0.6 -0.6 4.0 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY2
Slide 10: Company Overview
® Marksans Pharma Ltd. Company Overview
Slide 11: Company Structure - Parents & Subsidiary
Company Structure - Parents & Subsidiary Marksans Pharma (UK) Limited Distribution of quality Marksans Holdings Limited generic pharma Manufacturer of range of Only OTC 162+ OTC & Rx products; product licenses; Regional sales Manufacturer of 50+ products portfolio Manufacturer of development across
Slide 12: Business Overview
BUSINESS MODEL - GEOGRAPHIC MIX - Business Overview ~96% US & RoW of revenues comes from 3.8% North regulated markets Product Portfolio FY21 (₹ Cr.) America Australia 10.9% 39.7% Pain Management 604 Anti-Diabetic 150 Forward- Cough & Cold 124 integrated Cardiovascular System(CVS) 124 Q1FY22 business
Slide 13: Focused Business Model
Focused Business Model Focus on Forward Wider Product Regulated Markets Integrated Basket Business Model • Marksans commenced business with • Marksans commenced operations as a • Marksans commenced its journey with CRAMS directed at the UK and Australian formulations manufacturing enterprise product
Slide 14: Forward Integrated Business Model
Forward Integrated Business Model R&D and Manufacturing Supply chain and distribution End Consumers AUSTR ALIA Retail chains UK Goa, India EUROPE NORTH Pharmacy Stores AMERICA Southport, UK CANADA ROW EXPORT Hospitals Farmingdale, USA 14
Slide 15: Strategic Focus on Regulated Markets
Strategic Focus on Regulated Markets USA Global Footprint Regulatory Approvals Marksans Pharma entered into strategic These markets are empowered with tie-ups and acquired key players in regulatory approvals which allows the major markets to expand its global company to sell its products without foo
Slide 16: Niche Formulations with few Competitors
Niche Formulations with few Competitors DIFFERENTIATED OFFERINGS LIMITED COMPETITION HIGH BARRIERS TO ENTRY Focused on softgel capsules with a view to Given the challenges in preparing Softgel High capex requirements and operational build a differentiated set of offerings in the formulations plus ot
Slide 17: Business & Opportunity by Market Size
Business & Opportunity by Market Size 17
Slide 18: UK Business & Opportunity by Market Size
UK Business & Opportunity by Market Size C O M PA N Y P R E S E N C E OUTLOOK OVERVIEW OF THE MARKET • One of the top 5 Indian pharma companies in the UK. • Bell has 50+ products in the The UK & EU pharmaceutical market is estimated pipeline in different stages to cater to grow from ~USD 468 billion
Slide 19: Expansion Strategy for UK
Expansion Strategy for UK UK BUSINESS Q1FY22 • Wide UK customer base and 100% reach within the distribution channel. • Broad and diversified range of product portfolio with well recognized brands. • Captured a large share of OTC and generic markets. ORGANIC GROWTH • Working on receiving USFDA approv
Slide 20: US Business & Opportunity by Market Size
US Business & Opportunity by Market Size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLOOK The US holds over 30-40% of the global • In June 2015, Marksans acquired Time-Cap Labs • Strengthen company’s US operations in the which enabled Marksans to expand its offering in coming years pharma
Slide 21: Expansion Strategy for US
Expansion Strategy for US • 50+ products in various therapy area segments in both OTC & Rx US BUSINESS Q1FY22 • Positioned in the niche soft gel category • 23 ANDAs filled till date • Capacity increased by adding more packaging and manufacturing lines • Expanding presence in other North American reg
Slide 22: Australia Region Business & Opportunity by Market Size
Australia Region Business & Opportunity by Market Size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLOOK Australia’s pharmaceutical market is set to • Marksans carries out business operations • Australia and New Zealand will continue to in Australia and New Zealand through its remain focus
Slide 23: Emerging Market Business & Opportunity by Market Size
Emerging Market Business & Opportunity by Market Size OVERVIEW OF THE MARKET C O M PA N Y P R E S E N C E OUTLOOK ROW includes markets of South East Asia, • Presence in emerging markets such as • In process of launching new products and South East Asia, MENA, LATAM, CIS and obtaining product registr
Slide 24: Manufacturing Capabilities
Manufacturing Capabilities Goa, India • Manufactures oral solid tablets, C A PAC I T Y A C C R E D I TAT I O N S and soft and hard gelatin capsules 2.4 bn softgel and hard gelatin capsules per annum • Ongoing expansion for adding new manufacturing lines 6 bn solid tablets per annum Southport, UK • M
Slide 25: R&D and Product Launches Highlights
RECEN T K EY P ROD UCT L AUN CHES R&D and Product Brand Composition Therapy Segment Market METOZOLV (Q1FY22) Metoclopramide 10MG Gastrointestinal UK Launches Highlights CRESTOR (Q1FY22) Rosuvastatin - 5,10, 20, 40 MG Cardiovascular UK COZAAR Losartan Potassium – 25, 50 & 100 MG Cardiovascular UK TAZ
Slide 26: 5 Year Performance Review
® Marksans Pharma Ltd. 5 Year Performance Review
Slide 27: Financial Highlights
Financial Highlights Operating Revenue (₹ cr.) Gross Profit (₹ cr.) & Gross Profit Margin CAGR : 15.7% 50.2% 49.9% 56.8% 40.2% 42.7% 1376.2 781.1 1000.1 1134.2 566.4 767.2 912.7 502.1 308.4 389.6 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (₹ cr.) & EBITDA Margin PAT (₹ cr.) & PAT Margi
Slide 28: Financial Ratios
Financial Ratios ROE ROCE 26.3% 32.6% 18.6% 24.6% 2.6% 14.6% 19.1% 3.2% 10.4% 7.5% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Debt to EBITDA (X) Fixed Asset Turnover Ratio (x)* 4.0 4.4 1.9 2.9 3.3 3.6 1.0 0.5 ~ -0.6 FY17 FY18 FY19 FY20 FY21 -0.4 FY17 FY18 FY19 FY20 FY21 28 * Includes Tang
Slide 29: Segmental Mix
Segmental Mix Therapeutic Segment-Wise YoY Segment Revenue YoY 100.0% 6.8% 100.0% 10.2% 8.2% 11.7% 13.9% 90.0% 7.5% 8.3% 90.0% 8.6% 8.6% 7.3% 80.0% 80.0% 12.0% 8.8% 20.6% 44.1% 18.4% 10.9% 51.0% 70.0% 54.7% 70.0% 58.0% 58.6% 5.2% 11.7% 6.0% 6.3% 6.7% 60.0% 14.2% 9.0% 60.0% 12.4% 13.8% 13.1% 50.0% 9.
Slide 30: Global Reach Enables Reduction in Country Risk
Global Reach REVENUE MIX Enables Reduction in 3.4% 3.0% 5.6% 4.2% 4.6% 13.8% 10.9% 12.4% 10.6% Country Risk 12.0% 37.3% 45.5% 41.3% 42.3% Company’s business 45.0% is classified under 4 heads: 1 North America/ US generics 45.5% 40.7% 41.1% 42.5% 38.5% 2 Europe/UK generics 3 Australia and New Zealand
Slide 31: Key Focus Areas
® Marksans Pharma Ltd. Key Focus Areas
Slide 32: Key Focus Areas
Key Focus Areas S T R AT E G Y G RO W T H L E V E R S Expansion The company generates ~96% of its revenue from regulated markets and expects to 1 Expansion of current product portfolio in regulated market further expand in these markets through continued push of existing products in regulated and ot
Slide 33: Leadership Team
® Marksans Pharma Ltd. Leadership Team
Slide 34: Leadership Team
Leadership Team MR . MA R K S A L DA N H A M R . VA R D D H M A N J A I N M R . S AT H I S H K U M A R M R . D AV I D M O H A M M E D MR. JITENDRA M SHARMA Managing Director & CEO W h o l e - T i m e D i r e c t o r. MD – Marksans Pharma UK Ltd. M D - Pharmaceuticals Australasia pty Chief Financial
Slide 35: Investment Rationale
® Marksans Pharma Ltd. Investment Rationale
Slide 36: Investment Rationale
Investment Rationale Widening Amongst Largest Key Markets Product Portfolio Pharma Market Company is widening its products portfolio The US, the UK and Australia are the key Marksans is among a handful of Indian in the complex and high-margin generics Marksans’ markets with all of them being players
Slide 37: Investment Rationale
Investment Rationale Sustainable business model with strategic focus on Forward integrated business model with presence 1 regulated markets with markets of USA, UK, Australia and New Zealand contributing to c. 96% of total 5 across the pharma value chain including in-house R&D centers, owned and out
Slide 38: Orbimed Investment Update
Orbimed Investment Update • Orbimed, a Global Investment Firm with US$ 19 bn assets under management has invested in 493.24 lakhs convertible warrants at ₹74.00 per warrant totaling to ₹365 cr. • Orbimed has an option to convert the warrants into equity shares and will thereafter own 10.7% stake in
Slide 39: Shareholder Information
Shareholder Information Shareholding as on June 30, 2021 Share Information (as on June 30, 2021) NSE Ticker MARKSANS Promoters 48.25% (Shares pledged – Nil) BSE Ticker 524404 Market Cap (INR Cr) 3,530.3 % free-float 51.75% Free-float market cap (INR Cr) 1,826.0 Shares Outstanding 40,93,13,698 Others
Slide 40: ESG and Corporate Governance
ESG and Corporate Governance 40
Slide 41: ESG Philosophy
ESG Philosophy ENVIRONMENTAL SOCIAL GOVERNANCE • Efficient use of resources to minimize • Company is actively contributing to • Committed to good corporate the waster generation. the social and economic governance to achieve long term development and build a better corporate goals and to enhance • P
Slide 42: ESG at Marksans
ESG at Marksans HELPING WOMEN & Marksans along with Ministry of Health, Government of Goa is helping in Women and child CHILD DEVELOPMENT development, professionalizing Anganwadis and national nutrition mission in Goa. PROVIDE FIRE Company has provided fire extinguishing equipment to the fire depart
Slide 43: Corporate Governance Philosophy
Corporate Governance Philosophy We at Marksans Pharma Ltd adhere to following principles : 1 Conducting Business in Ethical, Transparent and Accountable manner. 2 Producing goods which have a sustainable life cycle. 3 Adherence to ethical working standards to ensure the wellbeing of all employee. 4
Slide 44: Contact Us
Contact Us I N V E S TO R R E L AT I O N S T E A M AT M A R K S A N S P H A R M A CO R P O R AT E O F F I C E Jitendra Sharma Ravi Udeshi/ Rahul Thakur 11th Floor Grandeur, Off Veera Desai Road, (CFO) (Christensen Investor Relations) Opp Gundecha Symphony, Andheri (W), Mumbai – 400 053, Maharashtra