Slide 1: Reaching Out For New Horizons: 2018 Annual Results Corporate Presentation
Reaching Out For New Horizons 2018 Annual Results Corporate Presentation 26th June 2018 | Hong Kong Stock Code 2633
Slide 2: Agenda
Do Well Agenda Feel Good Deliver More Key Strategic Priorities Derek Sum Chief Executive Officer Financial Results & Highlights Victor Lau VP – Finance and Investor Relations • Poised For Future Growth – BIRD 2020 • Q&A 2
Slide 3: Fast Changing Environment & Dynamic Industry Trends
Fast Changing Environment & Do Well Feel Good Dynamic Industry Trends Deliver More Advances in Biosimilars, Genomics, Personalized Medicines Opportunities Cost leadership via lean structure to Create Value but Pockets of opportunities: OTC/Medical Nutrition Challenges Require Agility & Change M&A la
Slide 4: Functional & Operational Excellence to Deliver Sustainable Growth
Functional & Operational Excellence Do Well Feel Good to Deliver Sustainable Growth Deliver More • Broad-to-market Local Leadership • First-to-market & Scalability • Economies of scale translated into cost advantage • R&D and in-licensing capabilities (ER Quetiapine , Tenofovir) Functional • Track r
Slide 5: Solid Performance Across Core Businesses
Do Well Solid Performance Across Core Businesses Feel Good Deliver More • Expanded market share of respiratory products through new launches • Robust sales growth of Losartan & Gliclazide Revenue Generics • Strong performance of CNS (Amisulpride/ +23.3% Zolpidem /Risperidone) plus first generic on L
Slide 6: BIRD 2020
Do Well BIRD 2020 Feel Good Deliver More Bold - in exploring opportunities Innovative - in the way we serve and build Respect - values and people Dedicated - in what we aspire to achieve 6
Slide 7: Key Strategic Objectives [BIRD 2020]
Do Well Key Strategic Objectives [BIRD 2020] Feel Good Deliver More 1 Increase market shares in all markets in which we operate Increase market presence outside of Hong Kong and become a 2 forward-looking player in Asia Strengthen values in our product portfolio through a selection of 3 in-licensed
Slide 8: Strategic Priorities For Generating Values
Do Well Strategic Priorities For Generating Values Feel Good Deliver More Establish a regional sales • Covering Greater China and ASEAN 1 • Integrate & optimize organizational infrastructure to drive performance strength Build portfolio of Biosimilars & • Be the partner of choice for in-licensing or
Slide 9: Poised For Future Growth
Do Well Poised For Future Growth Feel Good Deliver More HK#039;000 Revenue HK#039;000 EBIDTA (Adjusted) HK#039;000 Profit Attributable to Shareholders 1,600,000 450,000 220,000 1,500,000 200,000 400,000 1,400,000 CAGR 18% CAGR 27% 180,000 CAGR 26% 350,000 1,300,000 160,000 1,200,000 300,000 140,000 1,100,000
Slide 10: BIRD 2020: Do Well Feel Good Deliver More
BIRD 2020 Do Well Feel Good Deliver More 10
Slide 11: Financial Results & Highlights
Financial Results & Highlights 11
Slide 12: Business Performance in FY2018
Do Well Business Performance in FY2018 Feel Good Deliver More Solid growth of +23.3% in revenue, +20.7% in EBITDA and +12.8% in profit Performance Growth Drivers • Solid sales growth for central nervous system and respiratory categories as Generic: Revenue grew by +7.4% well as ophthalmic preparatio
Slide 13: Key Financial Data
Do Well Key Financial Data Feel Good Deliver More (HK$’m) FY2018 FY2017 Changes Revenue 1,548.7 1,256.0 +23.3% Gross Profit 617.7 556.9 +10.9% EBITDA (Adjusted) 397.0 328.9 +20.7% Profit Attributable to Shareholders 202.3 179.3 +12.8% Dividend – Interim and Final (HK cents) 3.8 2.2 +72.7% EPS - Basi
Slide 14: Revenue
Do Well Revenue Feel Good Deliver More (HK$ ’M) Revenue increased by 23.3% to 1,548.7 HK$1,548.7 million 1,400 1,256.0 177.7 • Increase in revenue of $81.2 million in Generic 192.2 Drugs Segment (77%), HK$33.8 million in 1,200 158.4 Proprietary Medicine Segment (12%) and $177.7 1,000 million in Whol
Slide 15: Gross Profit
Do Well Gross Profit Feel Good Deliver More (HK$ ’M) Gross Profit increased by 10.9% to HK$617.7 million 800 700 • Contributed by the increase in both Generic Drugs and Proprietary 600 Medicines segments as well as the addition of new Wholesale and 500 Retail Segment 400 300 556.9 617.7 200 100 0 20
Slide 16: EBIDTA (Adjusted)
Do Well EBIDTA (Adjusted) Feel Good Deliver More (HK$ ’M) EBIDTA (Adjusted) increased 500 by 20.7% to HK$397.0million 450 400 • Growth of HK$68.1 million 350 • Contributed by business growth and acquisitions made in prior year 300 • Represented the strong capability 250 of generating operating cash
Slide 17: Profit Attributable to Shareholders
Do Well Profit Attributable to Shareholders Feel Good Deliver More (HK$ ’M) Profit attributable to shareholders increased 300 by 12.8% to HK$202.3 million 250 • Contributed by the enhancement in profit from operation and EBITDA 200 • Affected by the increase in finance due to issue of convertible bo
Slide 18: Dividend
Do Well Dividend Feel Good Deliver More (HK Cents) 4 3.8 3.5 3 2.5 2.2 2.9 2 1.5 1.4 1 0.5 0.8 0.9 0 2017 2018 For the year ended 31 March Interim Dividend Final Dividend 18
Slide 19: Key Balance Sheet Data
Do Well Key Balance Sheet Data Feel Good Deliver More (HK$’000) FY2018 FY2017 Total Assets Less Current Liabilities 2,149,792 1,911,578 Cash and Cash Equivalents 656,733 359,685 Inventories 316,323 261,313 Trade and Other Receivables 254,797 201,470 Net Gearing Ratio 34.6% 32.6% 19
Slide 20: Thank You! Q&A
Thank You ! Q&A 20
Slide 21: Appendix
Do Well Appendix Feel Good Deliver More • AnnualAnnual Consolidated Statement Consolidated ofProfit Statement of Profit or Loss and Other Comprehensive Income or Loss and Other Comprehensive Income • Annual Consolidated Statement of Financial Position 21
Slide 22: Annual Consolidated Statement of Profit or Loss and Other Comprehensive Income
Annual Consolidated Statement of Profit Do Well Feel Good or Loss and Other Comprehensive Income Deliver More Year ended 31 March 2018 2017 HK$’000 (audited) HK$’000 (audited) REVENUE 1,548,684 1,255,957 Cost of sales (931,022) (699,069) GROSS PROFIT 617,662 556,888 Other income 19,506 11,740 Sellin
Slide 23: Annual Consolidated Statement of Financial Position
Annual Consolidated Statement of Do Well Feel Good Financial Position Deliver More As at 31 March 2018 As at 31 March 2017 HK$’000 (audited) HK$’000 (audited) NON-CURRENT ASSET Investment property 91,000 - Other property, plant and equipment 982,270 1,007,672 Leasehold land 48,041 48,839 Intangible