Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — Q3 2018 Earnings Presentation
30 slides from Ibnsina Pharma's earnings presentation, 2018
Slide 1: Investor Presentation Q3 2018 Audited Results
Investor Presentation Q3 2018 Audited Results Egypt’s fastest growing pharmaceutical distributor 2nd largest pharmaceutical distributor with a market share of 20.2% c.42k clients served annually through a network of 57 operational sites and a fleet of 654 vehicles 5-year revenue CAGR of 31% co
Slide 2: Disclaimer
Disclaimer THIS DOCUMENT CONTAINS STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, “FORWARD-LOOKING STATEMENTS” WHICH ARE NOT HISTORICAL FACTS BUT RATHER ARE STATEMENTS OF FUTURE EXPECTATIONS AND PROJECTIONS BASED ON MANAGEMENT’S VIEWS AND ASSUMPTIONS REGARDING TRENDS IN THE EGYPTIAN, MIDDLE EASTERN, EU
Slide 3: Agenda
Agenda I Introduction to the Company II Key Investment Highlights III Appendix IV Contact Information 3
Slide 4: The Company in numbers
II Introduction to the Company The Company in numbers 17+ years Experience in pharmaceutical distribution #1 Growing pharmaceutical distributor in Egypt 2nd Largest pharmaceutical distributor with c.20.2% market share¹ in Q3 2018 c.42k Retail pharmacies, hospitals & wholesalers served in Q3 2018 Ove
Slide 5: Ibnsina Pharma, Egypt's fastest growing pharmaceutical distributor
II Introduction to the Company Ibnsina Pharma, Egypt’s fastest growing pharmaceutical distributor… Company Overview Market Share¹ Established in 2001, Ibnsina Pharma “ISP” is the fastest growing, and 2nd largest, pharmaceutical distributor in Egypt with a market share of c.20.2% Nationwide distribut
Slide 6: …with a proven track record of success…
II Introduction to the Company …with a proven track record of success… 2015 Expansion: 2009-2012 Launch: 2001-2005 Investment to add 15 distribution Established in 2001 under the name centers & 5 offices, and enhance “Ibnsina Laborex” in partnership with efficiency through standardizing Pinault Prin
Slide 7: …optimally expanding our distribution network to unlock value…
II Introduction to the Company …optimally expanding our distribution network to unlock value…. Distribution Network No. of Sites (Rev/Site – EGP mn) Revenue by Business Line 5 Platforms (Inbound Logistics) 43 Distribution Centers (DC) 144 174 127 166 3.2% 0.3% 2.4% 1 Tender DC 2 Reverse Logistics Wa
Slide 8: …and leveraging our network to serve our c.42k customers nationwide
II Introduction to the Company …and leveraging our network to serve our c.42k customers nationwide Clients by Geography (9M 2018) 14.4% 14.5% 10.7% 13.8% 31.1% 31.8% 12.3% 42.9% 17.1% 44.1% 25.4% 26.0% 34.1% 25.0% 28.4% 28.4% 42,297 39,655 756 1,886 Retail Pharmacies Wholesale Clients Hospital Clien
Slide 9: Key Investment Highlights
Key Investment Highlights 9
Slide 10: Key Investment Highlights
III Key Investment Highlights Key Investment Highlights 1 Solid Demographic A rapidly growing population coupled with a growing middle class and increasing healthcare awareness, positions Egypt Profile as one of the most attractive consumer markets in the region 2 Attractive Industry A highly defens
Slide 11: Solid Demographic Profile
III Key Investment Highlights 1 Solid Demographic Profile Egypt’s demographic profile makes it the region’s largest consumer market Population I mn Age Pyramid Urban Population Disposable Income | EGP bn Population (mn) Growth Rate Egypt has seen a growth in health awareness on the back of a growing
Slide 12: Attractive Industry Dynamics (I/II)
III Key Investment Highlights 2 Attractive Industry Dynamics (I/II) A highly defensive sector with significant room for continued growth Health Expenditure CAGR 2013-2017 Pharmaceutical Sales | EGP bn Total Number of Pharmacies | ‘000 Egypt’s healthcare market is the fastest growing in the region Gi
Slide 13: Attractive Industry Dynamics (II/II)
III Key Investment Highlights 2 Attractive Industry Dynamics (II/II) A highly defensive sector with significant room for continued growth Pharma Market Share Market Segmentation I Market Share FY2017 Public Sector 3% Novartis 8% GSK 6% ISP 20.2% Ezaby 4% Sanofi 5% Seif 2% Pharco 5% Roushdy 2% FY 201
Slide 14: Strong Market Share
III Key Investment Highlights 3 Strong Market Share Exceptional profitable growth on the back of a solid value-based differentiation strategy ISP is the fastest growing distributor in the Egyptian market 32.7% ISP Market Share Progression 32.9% 20.2% 19.2% 16.9% 2011 9.9% 20.2% 9M 2018 15.4% 13.9% O
Slide 15: Efficient Business Model
III Key Investment Highlights 4 Efficient Business Model Operational efficiency driven by best-in-class supply chain processes Distribution Value Chain Overview Sourcing Processing Distribution Commercial team sources orders from 350+ suppliers Over 200 platform operations employees handle and Dynam
Slide 16: Resilient Supply Chain
III Key Investment Highlights 5 Resilient Supply Chain Highly diversified supplier/client base significantly mitigating supply chain risks Diversified Geographical Presence Minimal Supplier Concentration Expansive SKUs Coverage Sanofi Alexandria Distributed Aventis 7% Amoun 5% 14.4% Cairo & Canal by
Slide 17: Robust Financial Performance
6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth 3Q18 3Q18 3Q18 3Q18 3Q18 3Q18 Net Revenues Gross Profit EBITDA Operating Profit Net Profit Normalized Net Profit EGP 3.5 BN EGP 343.5 MN EGP 196.9 MN EGP 156.3 MN EGP 113.2 MN EGP 125.4 MN ▲
Slide 18: Robust Financial Performance
III Key Investment Highlights 6 Robust Financial Performance Robust financial performance with double digit top line and bottom line growth Gross Revenue1 | EGP mn Gross Profit | EGP mn, % EBITDA & Margin | EGP mn, % YoY 35.1% CAGR 46% CAGR 31% YoY 46.2% CAGR 37% YoY 38.1% 9,818 9,683 9.0% 4.2% 8
Slide 19: Robust Financial Performance: Working Capital Management
III Key Investment Highlights 6 Robust Financial Performance Effective working capital management has been a key success factor to ISP’s performance DOH 2015 2016 2017 9M 2017 9M 2018 Inventory 32 29 29 33 34 days days days days days 85 83 83 84 83 Receivables days days days days days 112 114 128 11
Slide 20: New Revenue Streams
III Key Investment Highlights 7 New Revenue Streams Expansion into high-margin diversified revenue streams to further enhance profitability Warehousing Transportation Warehousing services for suppliers which allows them to save significant CAPEX. ISP Capitalizing on a growing need for specialized tr
Slide 21: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Highly experienced management team with strong track record 28 years of pharmaceutical industry experience with focus on commercial operations, IT, quality assurance and administration. Mahmoud Abdel Gawad Prior to Ibnsina, Mahmoud held sev
Slide 22: Experienced Management Team: Board of Directors
III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries Over 40 years of experience across various industries including healthcare, FMCG, and financial services with focus on all investment activities pursued by the Co
Slide 23: Experienced Management Team: Board of Directors
III Key Investment Highlights 8 Experienced Management Team Seasoned board of directors with diverse experience across various industries 42 years of experience in finance and banking. Hany Badr His experience included serving as Head of Treasury at Faisal Islamic Bank, until 2016, and Assistant Gen
Slide 24: Organizational Structure
III Key Investment Highlights 8 Experienced Management Team Organizational Structure Board Committees Executive Chairman Management Committees Mohsen Mahgoub Audit Committee Executive Committee Business Development Committee Board of Directors Business Review Committee Remuneration Committee Investm
Slide 25: Appendix
3s < Appendix
Slide 26: A significantly complex industry with high barriers to entry
IV Appendix A significantly complex industry with high barriers to entry Barriers to Entry Operational Complexity Inventory A Variety of High Variability of Labor Intensive Geographically Management SKUs Demand Business Dispersed Client Base Highly complex inventory 9k unique drug therapies Short-no
Slide 27: Income Statement
IV Appendix Income Statement In EGP 2014 2015 2016 2017 9M2017 9M2018 YoY Change Gross Revenue 1 4,301,516 5,439,119 7,372,467 9,818,405 6,872,056 9,682,528 41% Net Revenue 4,197,376 5,327,728 7,205,983 9,586,344 6,715,210 9,433,386 Cost Of Revenue (3,889,670) (4,931,515) (6,636,864) (8,759,914) (6,
Slide 28: Balance Sheet
IV Appendix Balance Sheet In EGP 2014 2015 2016 2017 Sep-2017 Sep-2018 Property & Equipment, net 118,666 152,479 171,327 210,264 182,849 225,115 Other Assets 2,840 5,307 6,667 8,804 8,833 7,547 Project Under Construction 25,864 13,787 47,639 161,267 148,745 431,386 Deferred Income Taxes 3,876 6,911
Slide 29: Contact Information
Contents 1 Executive Summary 2 Company Overview 3 Key Investment Highlights 4 Financial Performance Review 5 Contact Information Contact Information 29
Slide 30: Contact Information
V Contact Information Contact Information Mohamed Mahmoud Shawky Investor Relations Manager Tel.: +2010 00852771 Email: shawky@Ibnsina-pharma.com 30