Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — 9M 2022 Earnings Presentation
28 slides from Ibnsina Pharma's earnings presentation, 2022
Slide 1: Investor Presentation 9M22 Results
Investor Presentation 9M22 Results Egypt’s Fastest Growing Pharmaceutical Distributor § 2nd largest pharmaceutical distributor with a retail market share of 21% § c.49k clients served annually through a network of 65 operational sites and a fleet of 832 vehicles § 6-year revenue CAGR of 25% compared
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
The Company in numbers 20+ years Experience in pharmaceutical distribution #1 Growing pharmaceutical distributor in Egypt 2nd Largest pharmaceutical distributor with 21% retail market share c.49 k Retail pharmacies, hospitals & wholesalers served Over 360 Multinational & local pharmaceutical supplie
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 Retail Market Share¹ Established in 2001, Ibnsina Pharma “ISP” is the fastest growing, and 2nd largest, pharmaceutical distributor in Egypt with a market share of 22.4% Nationwide dist
Slide 6: Strategies Timeline
Strategies Timeline … 2017 Launch: 2001-2005 Established in 2001 under the name Expansion Strategy: 2009-2012 “Ibnsina Laborex” in partnership with Pinault Printemps Redoute (“PPR”) Investment to add 15 distribution 2015 through its subsidiary Eurapharma centers & 5 offices, and enhance 7 Operationa
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 and main warehouse 50 Distribution Centers (DC) 268 296 340 0.4% 2 Tender DC 2 Reverse Logistics Warehouses 17.6%
Slide 8: Leveraging our network to serve our c.49k customers nationwide
II Introduction to the Company …and leveraging our network to serve our c.49k customers nationwide Clients by Geography (FY2022) 14.5% 14.6% 12.8% 13.1% 30.8% 31.6% 13.4% 41.6% 46.1% 19.6% 25.4% 26.0% 28.5% 28.7% 27.7% 25.8% 49,801 45,978 868 2,955 Total Customers Retail Pharmacies Wholesale Clients
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)
II Key Investment Highlights 2 Attractive Industry Dynamics (I/II) A highly defensive sector with significant room for continued growth Total Market Size1 | EGP bn Market Segmentation Egypt’s healthcare market is the fastest growing in the region driven by significant growth in the pharmaceuticals m
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 Total Market Share Market Segmentation I Total Market Share 9M2022 Public Sector 5% Novartis 7.7% Pharco 4.3% ISP 21.7% GSK 3.5% Others 64% ABZ 0.9% El Daw
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 1 31.3% 32.7% ( -1.4%) ISP Retail Market Share Progression 22.4% 21.8% 21.3% 20.5% 19.2% 2011 9.
Slide 15: Efficient Business Model
4 Efficient Business Model Ibnsina pharma Strategy is focusing on four strategic pillars Sustainable Growth • Focus on high-margin items specially exclusive and imported . • Increase our market share with high-profitable clients • Expand the cash-based clients • Achieve targeted rebates Higher Margi
Slide 16: Ramp Logistics (I/II)
4 Ramp Logistics (I/II) Diversification by tapping into the EGP 80 BN high margin logistics sector Ramp Logistics Clients A 3PL company serving three main sectors; Pharma, FMCG and e-Commerce Nationwide warehouses with 25,000 m2 A transportation and distribution fleet covering all over Egypt A high
Slide 17: Ramp Logistics (II/II)
4 Ramp Logistics(II/II) expanding with 20K dry PP, currently capacity 40K pallet positions (60% occupancy) and planning to expand 35K additional pallet in 2023 Ramp Logistics in Geographical Numbers Existence Currently operates 3 warehouses in 6th of 1 October, Obour and 10th of Ramadan +9000 +35,00
Slide 18: El Shorouk hospital
4 El Shorouk hospital ISP taps into hospital business with the acquisition of El Shorouk hospital for EGP 430MN 2- Sherouk Hospital Other Main Highlights: Location El-Shorouk City § Radiology department § Cosmetic services clinics § Complete dental units § Lab/Pharmacy El-Shorouk City, Badr, Cities
Slide 19: Concrete digital infrastructure
4 Concrete digital infrastructure Concrete digital infrastructure to support ISPH Strategy as a leading ”Pharma Disruptor” Internal Supplier Customer INFOR ERP System: B2B Mobile App: • Strong & secure ERP system for a better • A digital self service channel to receive the business reporting , custo
Slide 20: Optimization & Working Capital
4 Optimization & Working Capital Optimizing supply chain network and working capital to improve productivity rate” Supply Chain Working Capital Productivity 01 Optimization 02 Enhancement 03 Improvement 1. Consolidating current network to Receivables – Client Side Organization Structure & Manpower a
Slide 21: 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 Distributed Alexandria Aventis 7% Amoun 5% by ISP 14.6% Cairo & C
Slide 22: 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, % CAGR 25% CAGR 23% +10.7% Y-o-Y CAGR 31% +27.1% Y-o-Y +16.2% Y-o-Y 2 0 . % 4.2% 4.2%
Slide 23: 9M22 Financial Performance
6 9M22 Financial Performance 9M22 9M22 9M22 9M22 Net Revenues Gross Profit EBITDA Net Profit EGP 15.8 BN EGP 1.2 BN EGP 495.05 MN EGP 118.4 MN ▲ 0.38% y-o-y -4.9% y-o-y -19.95% y-o-y -51.06% y-o-y Source: Company Management 23
Slide 24: Robust Financial Performance
III Key Investment Highlights 6 Robust Financial Performance Effective working capital management has been a key success factor to ISP’s performance DOH 2018 2019 2020 2021 9M 2022 36 36 36 Inventory 34 day days 40 day days s days s 89 92 88 83 96 Receivables day day days days s days s 124 126 121 1
Slide 25: 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 26: Experienced Management Team
III Key Investment Highlights 8 Experienced Management Team Highly experienced management team with strong track record 30 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 27: Experienced Management Team
8 Experienced Management Team Highly experienced management team with strong track record AIM Ibnsina Pharma’s investment arm established a new subsidiary, "Ibnsina Trade” to capture growth opportunities in medical promotion outsourcing, pharmaceuticals exports, non-food FMCG products distribution R
Slide 28: Contact Information
Contents ¡1 Executive Summary ¡2 Company Overview ¡3 Key Investment Highlights ¡4 Financial Performance Review ¡5 Contact Information Contact Information Mohamed Mahmoud Shawky Investor Relations & Corporate Communication Director Tel.: +2010 00852771 28 Email: mohamed.shawky@Ibnsina-pharma.com