Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — Q1 2024 Earnings Presentation
48 slides from Ibnsina Pharma's earnings presentation, Jul 1, 2024
Slide 1: Q1 2024 Investor Review
— ZK Ql, 2024 ibnsina pharma Investor Review
Slide 2: Outline: Investors' Presentation
Outline: Investors’ Presentation Business Performance YTD, Challenges & Key Initiatives Top Line OPEX Income Working Capital Non Core Market Performance Optimization Statement & Net Debt Business Dynamics Revenue & Gross Profit EBITDA vs OPEX Breakdown & Analysis of CCC, Debt & Financial Non-core Bu
Slide 3: Pharma Market Dynamics
Pharma Market Dynamics Macros and pharma market status 3
Slide 4: Pharma Market: Total Pharma Market Growth
Market Value Pharma Market: Total Pharma Market Growth Q1 24 vs Q1 23 Exchange Rate pressure EDA to increase Prices resulting in a double-digit growth in market value 41% 61.9 58.74 57.2 45.7 42.5 43.2 41.5 39.4 36.1 36.7 36.7 32.7 32.7 33.6 29.6 29.8 27.7 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020 Q1, 202
Slide 5: Pharma Market: Growth Drivers
Units Sold ASP Pharma Market: Growth Drivers Q1 24 vs Q1 23 Q1 24 vs Q1 23 Growth leveraged by “Average Selling Price” growth compensating decline in “Units sold” 1% 40% 8 0 1 0 0 1,023 948 958 949 960 72.08 927 938 905 900 7 0 877 893 887 847 836 8 0 824 809 65 815 61 6 0 55 6 0 51 5 0 46 44 41 41
Slide 6: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Sustainable Growth Differentiation Working Collaterals Capital (Held for Sale) Enhancement Ibnsina Pharma’s Q1, 2024 Strategic Pillars Highlights Investment OPEX Diversification Optimization Digitalization 6
Slide 7: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 8: 3.1% in Market Share
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 3.1% in Market Share Increase in Value vs Q1, 2023in all segments 27% Market Share 8
Slide 9: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 10: Exceptional Growth in Revenues
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Exceptional Growth in Revenues 55% Q1, 2024 Revenue 3.9bn Higher than 23 Growth in Revenue (10.9bn) 10
Slide 11: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 12: High growth despite 2023's exceptional performance
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter High growth despite 2023’s exceptional performance 42% Importation Margins Growth in Gross Profit Non-Pharma Distribution Margins (778bn) 12
Slide 13: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 14: Exponential growth in EBITDA
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Exponential growth in EBITDA Operational Optimization & Digitalization Reflected on Op-exp % 46% of Sales (3.2% Q1, 24 vs 3.6% Q1, 23) Growth in EBITDA (406bn) 14
Slide 15: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 16: Healthy Growth in NP
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Healthy Growth in NP Despite skyrocketing interest rate by 176% compared to Mar 22 35% Growth in Net Profit (98mn) 16
Slide 17: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 18: Decrease in Debt Ratio from 29% to 25%
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Decrease in Debt Ratio from 29% to 25% (Q1, 24 vs Q1, 23) 75% of total assets are free financed 25% Debt Ratio Further supporting bottom line (14% â vs Q1, 23) figures 18
Slide 19: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 20: Maintaining Healthy Levels of CCC
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Maintaining Healthy Levels of CCC Despite exceptional revenue growth by 55% 1.98 Days of Cash Conversion (vs 2.3) 20
Slide 21: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 22: Successful ERP roll-out
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Successful ERP roll-out Ongoing stabilization phase Integrating business cycles to 100% further optimizing operations Roll-out 22
Slide 23: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 24: Diversifying portfolio with new business lines
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter Diversifying portfolio with new business lines Higher margins Great synergy achieved further empower core business 3 Non-Core business Performance 24
Slide 25: ISP Strategy 2024: Q1 2024 Highlights
ISP Strategy 2024: Q1, 2024 Highlights Key highlights of the quarter 55% 42% 46% 35% 27% Growth in Growth in Growth in Growth in Market Share Gross Profit EBITDA Net Profit Revenue (778mn) (406mn) (98mn) (10.9bn) 25% 1.98 100% 3 Debt Ratio Days of cash Roll-out and Non-Core business (14% â vs Q1 23)
Slide 26: ISPH Strategy 2024: Sustainable Growth
ISPH Strategy 2024: ISP Strategy Sustainable Growth Sustainable Growth Differentiation Working Collaterals Capital (Held for Sale) Enhancement Ibnsina Pharma’s Sustainable Strategic Pillars Growth Investment OPEX Diversification Optimization Digitalization 26
Slide 27: Market Share: Total Market Value Performance
Market Structure – Q1, 2024 Market Share: Total Market Value Performance Pharmacies Hospitals Wholesale Ibnsina Pharma leads the market in March 2024 in from value & units 49% 30% 21% standpoints Market Share Market Share ISPH vs Market ISPH vs Market Q1, 2023 vs Q1, 2024 + 3% Q1, 2023 vs Q1, 2024 +
Slide 28: Revenue Analysis: Growth
Revenue Analysis: Growth Ibnsina Pharma achieves 54% QoQ revenue growth rate in 2024 1 2 ,0 0 2021 Revenue: 22.3bn 2022 Revenue: 22.8bn 2023 Revenue: 34.7bn 54% 2 3 5 % 58% 10,842 1 0 , 0 64% 10,444 9,322 1 8 5 % 58% 8 ,0 0 28% 7,988 8% 20% 6,995 1 3 5 % 17% -2% 6,594 6 ,0 0 22% 12% 6,131 -8% 7% 5,7
Slide 29: Revenue Analysis: Growth Across All Business Units
QoQ Growth Revenue Analysis: Growth Across All Business Units ISP Segments Addressing customer segments individually, modifying internal capacity to cater segment’s needs & potential 54% 12 10.84 10 10.44 9.32 Targeted QoQ Growth 8 Pharmacies 7.99 67% 6.99 6 6.59 6.13 Wholesale 5.79 5.54 5.51 5.68 5
Slide 30: Revenue Analysis: Subsidiaries & Non-core Business
Other Revenue Growth Revenue Analysis: Subsidiaries & Non-core Business Q1, 24 vs Q1, 23 (Without Reclass) Diversifying portfolio for sustainability and higher growth potential 104% Other Revenues Transporting 87 Warehousing Data Services 76 Over-printing 70 Marketing 67 31 Digital 11 17 26 43 36 35
Slide 31: Gross Profit: Gross Profit Analysis
Gross Profit Growth Gross Profit: Gross Profit Analysis Q1 24 vs Q1 23 Optimize gross profit due to success in managing CTG, GDT & Supplier Deals 42% Gross Profit Optimization (Q1) Cash Discount Given (Millions) Gross Profit Trend (Margin %) 0.48% 8.1% 4 0 4 .0 % 3 5 0 8.0% 3 0 3 .5 0 % 2 5 0 3.24%
Slide 32: Market Anatomy: Segments Performance
Market Anatomy: Segments Performance Ibnsina Pharma growth is in line with market dynamics, growing wholesale segment 144% in 2024 Market Anatomy – Segments’ Contribution ISP Segment Contribution to Total Revenue 2020 – 2024 Q1 2020 – 2024 Q1 - (Market Data) 2024 20% 2024 30% 2023 2022 2021 2023 31%
Slide 33: ISP Strategy: OPEX Optimization
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s OPEX Strategic Pillars Optimization Working Diversification Capital & Debt Optimization Digitalization 33
Slide 34: Productivity: Optimization
Productivity: Optimization Optimizing key operational metrics, reflecting positively on EBITDA 852 72 8,041 Optimization of Vehicles | Sites | FTE’s Revenue Per Vehicle 1 6 0 Revenue Per Site 6 0 % Revenue Per FTE 2 4 0 % 36% 1.32 1 4 6 0 % 1 4 0 5 0 % 2 3 5 % 49% 48% 0.21 1 2 1 2 0 5 0 % 2 0.15 3 0
Slide 35: OPEX Optimization: Optimization
OPEX Optimization: Optimization New lowest OPEX to Sales recorded in Q1 2024 with a steady decline OPEX vs EBITDA (% of Sales - QOQ) 4.5% 4.3% 4.0% 4.1% 4.0% 4.0% 3.8% 3.7% 3.5% 3.6% 3.4% 3.3% 3.2% 3.1% 3.2% 2.9% 2.7% 2.6% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 OPEX
Slide 36: ISP Strategy: Income Statement
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Income Strategic Pillars Statement Working Diversification Capital & Debt Optimization Digitalization 36
Slide 37: Income Statement: Q1 23 vs Q1 24
Income Statement: Q1 23 vs Q1 24 ISP Consolidated 35% growth in NP collectively despite set-backs in subsidiaries performance and due to the solid position ISP Standalone of Ibnsina Pharma AIM Consolidated Gross Sales (Growth: 55 %) Gross Profit (Growth: 42%) OPEX (Growth: 38%) EBITDA (Growth: 46%)
Slide 38: ISP Strategy: Working Capital & Net Debt Optimization
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Working Ibnsina Pharma’s Strategic Pillars Capital & Debt Optimization Working Diversification Capital & Debt Optimization Digitalization 38
Slide 39: Working Capital Optimization: Exceptional Relative Performance
Working Capital Optimization: Exceptional Relative Performance Maintaining a healthy CCC further supports spontaneous financing and free cash flow. CCC CCC CCC CCC 5.46 Days 12.46 Days 2.33 Days 1.98 Days 41 40 39 32 127 129 122 118 100 93 88 84 Q1 - 2021 Q1- 2022 Q1 - 2023 Q1 - 2024 DSO DIO DPO 39
Slide 40: Net Debt Optimization: Net debt maintained at same level despite growth
Net Debt Optimization: Net debt maintained at same level despite growth Net Finance Bearing Debt to Equity levels despite recent Equity multiple adjustments & Revenue growth Net Debt (mn) 3,262 3,852 3,526 4,013 3,613 4,129 Equity (mn) 1,509 1,332 1,368 1,410 1,449 1,547 Net Debt : Equity 2.2 2.9 2.
Slide 41: Financial Expenses: Debt Levels vs Interest Expense
Financial Expenses: Debt Levels vs Interest Expense While debt levels remain within same interval since 2022, Interest Expense rises steadily 350 FY, 2022 Interest Expense: 477mn FY, 2023 Interest Expense: 1,044mn 4,129 4,000 4,013 300 3,852 3,805 3,597 3,613 250 3,500 3,526 28.3% 200 3,262 3,241 3,
Slide 42: ISP Strategy: Investment Diversification
ISPH Strategy 2023-2024: ISP Strategy Investment Diversification Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Non-Core Ibnsina Pharma’s Strategic Pillars Business (Diversification) Working Investment Capital & Debt Diversification Optimization Digitalization 41
Slide 43: Non-pharma Distribution Review: Business Overview and Results
Non-pharma Distribution Review: Business Overview and Results Non-pharma Distribution Business Model – Higher Margin Business Line with Great Potential Non- Business Unit Pharma Distribution Segments Cosmetics Agencies E- Modern Para- Channels Wholesale commerce Trade Pharmacies pharma Pricing Worki
Slide 44: Non-pharma Distribution Review: Top Line Performance
Non-pharma Distribution Review: Top Line Performance Non-pharma Distribution Business Model – Higher Margin Business Line with Great Potential Q1, 2024 Highlights Supplier Portfolio NPM Revenue Analysis – Q1, 22 vs 23 vs 24 Expanding Current Supplier Portfolio 3% 7 0 1 5 % 134% # of Customer 6 0 1 5
Slide 45: Medical Promotion Review: Business Overview
Total MP Performance Q1, 23 vs 24 Medical Promotion Review: Business Overview MP Revenues MP Net Profit NPM High synergy diversification model with great impact on ISP’s growth performance 31mn 21mn 68% Medical Promotion Outsourcing Overview Medical Promotions Performance Benefits Global Market Size
Slide 46: Ramp Logistics Review: Service Outline & Top Line Overview
Ramp Logistics Review: Service Outline & Top Line Overview Multiple revenue streams and increase in customers on-board; showing potential Services Revenue Analysis P&L Key Challenges & Actions Revenue EBITDA Net Income 1 0 5 0 5 0 % 46 Warehousing Capacity 4 5 4 5 % Warehousing 47% Warehousing Reven
Slide 47: CAPEX Review: Main CAPEX Line
Investment 23 Investment 24 Growth CAPEX Review: Main CAPEX Line Investment facilitating growth direction 93 mn 70 mn -25% Core Investment Total Core 23 Green Projects 1 61mn HQ 3 Total Core 24 Vehicles 4 7 66mn Maintenance 5 6 (Contr.: 10%) Renovation 10 4 (Contr.: 7%) 2023 2024 (Contr.: 56%) New W
Slide 48: ibnsinapharma
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