26 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, Apr 25, 2023
Slide 1: First Quarterly 2023 Results
WuXi AppTec First Quarterly 2023 Results April 25, 2023 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: Results Overview, Business Highlights, Financial Performance, Growth Outlook
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook Notes: 3 All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB.
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Continued Solid Growth of Revenue & Profit in Q1 2023
Continued Solid Growth of Revenue & Profit in Q1 2023 Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +5.8% +14.1% 9.0 2.3 8.5 2.1 2022Q1 2023Q1 2022Q1 2023Q1 Net Profit Net Profit After Deducting Non-Recurring Items RMB billion RMB billion +32.0% +9.0% 2.2 1.9 1.6 1.7 2022Q1 2023Q1 202
Slide 6: Continue Strong Growth on Back of CRDMO/CTDMO Business Model
Continue Strong Growth on Back of CRDMO/CTDMO Business Model Follow the Science / Technology – Follow the Customer – Follow the Molecule Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion Adjusted Non-IFRS NPM 23.9% 39.4 9.4 22.4% 22.9 22.0% 16.5 18.0% 5.1 24.2% 26.1% 12.9 17.6% 3.6 9.6 8.
Slide 7: Q1 2023 Business Highlights
Q1 2023 Business Highlights “Long-Tail” Strategy Global Footprint 310+ New Customers 32 Global Sites & Branch Offices 6,000+ Active Customers 43,800 Total employees Loyal Customer Base 40,405 Scientists & Technicians 100% Retention of Our Top 10 Customers Small Molecule CRDMO DDSU Q1 2023 Pipeline 2
Slide 8: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Strong, Loyal & Execute Long-Tail Increase Customer Expanding Customer Strategy & Increase Conversion to Sustain Base Support to Large Pharma Growth Revenue composition Revenue composition Revenue composition Existing clients Top 20 Global Phar
Slide 9: Resilience of the Company's Financial Performance
Diversified Revenue from Customers Across Regions Ensures the Stability and Resilience of the Company’s Financial Performance China Europe 1.67bn, +5% 1.44bn, +19% Revenue contribution: 19% US Revenue contribution: 16% 5.41bn, +3% Excluding COVID-19 22% commercial projects: + Revenue contribution: 6
Slide 10: Talent Development and Operating Efficiency Improvement to Support Growth
Talent Development and Operating Efficiency Improvement to Support Growth Steady Growth of Output per Capita1, Resulting from Continuously Improved Operating Efficiency 43,800 2,379 RMB MM per capita 0.89 0.9+ Total Employees ending Overseas March 31 2023 Employees 0.63 0.66 0.59 0.54 36,130 4,275 2
Slide 11: 2. Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 12: WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth
WuXi Chemistry: Integrated CRDMO Business Model Drives Steady Growth, with Continuous Expansion in TIDES Development and Financial Performance Drug Discovery (R) Manufacturing (D&M) New Modalities (TIDES) Revenue growth of 5.1% YoY to Revenue of discovery chemistry Revenue of D&M service grew
Slide 13: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline driven by “Follow the Molecule + Win the Molecule” Strategies “R” 2023Q1 422,704 compounds 1 Win the Molecules in Total 258 252 2,177 Preclinical & Phase I 5 301 Phase II 57 Phase III 1 55 Commercial 13 Notes1: 422,704 individually synthesized compounds in labs
Slide 14: WuXi Testing: Lab Testing Services Drives Steady Growth
WuXi Testing: Lab Testing Services Drives Steady Growth Financial Performance Lab Testing Services Clinical CRO & SMO Revenue growth of 13.6% Revenue from lab testing Revenue of clinical CRO SMO maintained #1 YoY to 1.45bn services grew 15.9% YoY to and SMO grew 7.7% YoY to leadership positi
Slide 15: WuXi Biology: Strong Contribution from New Modalities Related Services
WuXi Biology: Strong Contribution from New Modalities Related Services Comprehensive Financial Performance Discovery Biology New Modalities Screening Platform Revenue growth of 8.3% One of the largest discovery Focused on improving our new A comprehensive early discovery screening modalities
Slide 16: WuXi ATU: CTDMO Business Model Drives Growth
WuXi ATU: CTDMO Business Model Drives Growth Progress of Financial Performance Project Pipeline Commercial Projects Revenue grew 8.7% to 0.32bn; Focused on improving our Supported a US client to complete BLA filing for a TIL product, the world’s first Testing grew 8.6%, Development integrated
Slide 17: WuXi ATU: Growing Pipeline on Globally Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform Testing Cell Therapies Gene Therapies CAR-T | TIL | Stem Cells AAV | LENTI | TESSA | OV US | EU | CN Provided globally 52 Preclinical & Phase I integrated CTDMO services to Cell & Gene Therapy product 8 Phase II development 8 Phase
Slide 18: WuXi DDSU: First Year to Receive NDA Approval
WuXi DDSU: the First Year to Receive NDA Approval of New Drugs Developed for Customers Financial Performance Project Pipeline Innovative R&D NDA Approval Revenue declined 31.0% Cumulatively submitted 175 Filed INDs for 3 drug In March 2023, a customer has YoY to 0.17bn IND filings and obtain
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 39,355 38.7% 22,902 38.0% 15,228 16,535 40.0% 40.3% 8,704 12,872 39.8% 5,155 6,670 37.8% 41.0% 9,614 8,474 8,964 3,830 3,202 3,678 2018 2019 2020 2021 2022 2022Q1 2023Q1 2018 2019 2020 2021 2022 2022Q1 2
Slide 21: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +13.6% +5.1% 1,453 6,433 6,118 1,279 2022Q1 2023Q1 2022Q1 2023Q1 WuXi Biology WuXi ATU WuXi DDSU +8.3% +8.7% -31.0% 577 324 241 533 166 299 2022Q1 2023Q1 2022Q1 2023Q1 2022Q1 2023Q1 21 Note: If the sum of the data above is inconsistent with the tota
Slide 22: Segment Adjusted Non-IFRS Gross Profit
Segment Adjusted Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing +17.1% 44.9% +15.6% 36.3% 40.3% 35.7% 2,888 528 2,466 456 2022Q1 2023Q1 2022Q1 2023Q1 WuXi Biology WuXi ATU WuXi DDSU +8.7% -49.9% 33.1% 41.5% 2022Q1 2023Q1 41.4% -22 -24 24.0% -7.5% 240 80 220 -7.4% 40 7.5% 2022Q1 2023Q1 2022
Slide 23: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million 2023Q1 2022Q1 Net profit attributable to the owners of the Company 2,168 1,643 (1) Add: +14.1% Share-based compensation expenses 166 180 RMB MM 2,342 Issuance expenses of convertible bonds 0.3 0.4 Fair value gains from derivative component of convertible bond
Slide 24: Capital Expenditure and Operating Cash Flow
Capital Expenditure and Operating Cash Flow Q1 2023 Free Cash Follow Achieved RMB 1.68 Billion, Turned Positive and Grew Strongly YoY RMB MM Capital Expenditure Operating Cash Flow 9,966 10,230 6,936 4,379 3,828 3,031 2,951 2,532 2,529 2,249 1,526 1,270 22Q1 2,208 22Q1 417 2018 2019 2020 2021 2022 2
Slide 25: 4. Growth Outlook
4. Growth Outlook i ls Be 3)
Slide 26: 2023 Outlook
2023 Outlook As global demand for life saving and innovative drugs continues to grow, demand for 1 our integrated CRDMO & CTDMO services keeps growing. We will achieve revenue growth of 5-7% in 2023 We will focus on building new capabilities and capacities, and constantly improving operating efficie