Zydus Wellness Limited · NSE:ZYDUSWELL
Zydus Wellness — Investor Presentation (September 2020)
32 slides from Zydus Wellness's investor presentation, Sep 11, 2020
Slide 1: Exchange intimation letter for investor presentation
September 11, 2020 Listing Department Code: 531335 BSE LIMITED P J Towers, Dalal Street, Fort, Mumbai–400 001 Listing Department Code: ZYDUSWELL NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai–400 051 Re: Investor Presentation. Dear Sir / Madam, Plea
Slide 2: Investor Presentation September 2020
Investor Presentation September 2020
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “presentation”) contains selected information about the activities of Zydus Wellness Limited (the “Company”) and its subsidiaries and affiliates (together, the “Group”) as at the date of the presentation. It does not purport to present a
Slide 4: Agenda
Agenda 1 Company overview 2 Key highlights 3 Recent updates 4 Appendix 2
Slide 5: Company overview
Company overview
Slide 6: Company overview
Company overview Brands 25+ 4 INR 9,481 Cr Years of operations brands as category Market capitalization2 market leaders1 SAMPRITI Shareholding structure3 Others 2.1x INR 1,767 Cr 18.2% 16.44% 5yr share price FY20 Revenue from FY20 EBITDA LIC 3.20% appreciation2 operations margin Threpsi Care 12.52%
Slide 7: Key milestones in our journey
Key milestones in our journey 2019 Acquisition of Heinz India Private Limited (“Heinz”) and integration & merger with Zydus Wellness Products 2017 Launched Sugar Free Green with Stevia & new production facility at Sikkim Unit II 2006 Acquisition of 2018 1991 Carnation Nutra Launched Everyuth Tan Lau
Slide 8: Key Highlights
Key Highlights
Slide 9: Right recipe for growth
Right recipe for growth 1 Compelling market fundamentals and consumer dynamics 2 Portfolio of several market leading brands 3 Strong distribution network with presence across multiple channels Stable and well-established supply chain with high quality 4 manufacturing facilities 5 Strong focus on inn
Slide 10: Compelling market fundamentals and consumer dynamics
1 Compelling market fundamentals and consumer dynamics While GDP growth and per capita income have declined in FY21, they are expected to bounce back in FY22 Real GDP y-o-y growth (%) Per capita net national income (INR) at constant prices 94,954 94,236 7.2% 6.1% 92,085 6.0% 4.2% 89,761 87,828 FY18
Slide 11: Portfolio of several market leading brands
2 Portfolio of several market leading brands Prickly heat Butter SAMPRITI powder substitute Sugar Premium substitute healthy ghee #1 N/A #1 N/A Health food Natural drink skin care #5 #1(1) Instant energy Low calorie #1 N/A sugar powder Foods #X Market rank Skin care Source: Company information; Niel
Slide 12: Portfolio of several market leading brands (cont'd.)
2 Portfolio of several market leading brands(cont’d.) Glucon-D - Instant energy health drink Complan - Milk-based health food drink Glucon-D Complan Category size: ~INR 9.8bn (11% growth1) Category size: ~INR 73bn (6% growth1) Market share: 59.0% Market share: 5.4% Category-leading brand w
Slide 13: Portfolio of several market leading brands (cont'd.)
2 Portfolio of several market leading brands(cont’d.) Sugar Free - India’s 1st low calorie sugar substitute Nycil - legacy brand in the prickly heat powder category Sugar free Nycil Category size: ~INR 385 Cr Category size: ~INR 761 Cr Market share: 93.6% Market share: 34.4% Launched in 19
Slide 14: Portfolio of several market leading brands (cont'd.)
2 Portfolio of several market leading brands(cont’d.) Nutralite - butter substitute and low calorie spreads Sampriti – Premium healthy ghee Nutralite Sampriti One of the leading butter substitutes and low calorie spreads in India Clarified butter primarily made from buffalo milk used in Premiu
Slide 15: Portfolio of several market leading brands (cont'd.)
2 Portfolio of several market leading brands(cont’d.) Everyuth - Facial cleansing with a strong ‘Naturals’ brand equity SugarLite – Low calorie Sugar Everyuth Sugar Lite Category size: ~INR 2,953 Cr 1 Launched in 2018 as a natural healthy sugar alternative with Market share: 6.0% 1 (77.9% in p
Slide 16: Strong distribution network with presence across multiple channels
3 Strong distribution network with presence across multiple channels Distribution network Structured distribution networks to facilitate sales to address different consumer demands Primarily sold by distributors to retail outlets and retail chains in India General Trade channels Super-stockists,
Slide 17: Stable supply chain with high quality manufacturing facilities
Stable and well established supply chain with high quality 4 manufacturing facilities Supply chain efficiency Manufacturing footprint 1 Aligarh 3 Sitarganj Sampriti Ghee and Milk Glucon-D and Complan processing 4 5 Sikkim 2 Ahmedabad 205 124 Sugar Free and Everyuth Raw material vendors Packaging mat
Slide 18: Strong focus on innovation across products
5 Strong focus on innovation across products January 2018 March 2018 October 2018 January 2020 March 2020 June 2020 July 2020 Nutralite Mayonnaise Everyuth tan removal Launched Sugarlite Sugar Free Green re- Nycil Hand Sanitizers Complan Nutrigro Complan sachets range launch Launched in three 10
Slide 19: Track record of strong financial performance
6 Track record of strong financial performance Revenue from operations Gross margin In INR Lakhs In INR Lakhs 67% 65% 56% 59% 56% 176,682 98,805 84,282 54,445 62,025 53,737 35,173 36,730 52,114 29,907 FY18 FY19 FY20 Q1 FY20 Q1 FY21 FY18 FY19 FY20 Q1 FY20 Q1 FY21 EBITDA Profit after tax In INR Lakhs
Slide 20: Experienced Board of Directors and management team
7 Experienced Board of Directors and management team . . . Dr. Sharvil P Patel Savyasachi S. Sengupta Chairman & Non-Executive Director Independent Director Director since 2009; MD of Cadila Healthcare Director since 2018 (parent company) Previously associated with Alembic Bachelor’s degree
Slide 21: With strong parentage
7 . . . with strong parentage Leading Indian pharmaceutical company which is a fully integrated, global healthcare provider INR 14,253 Cr 19.5% FY20 Revenue FY20 EBITDA margin INR 37,228 Cr 8 Market capitalization1 State-of-the-art R&D facilities 5th 36 In Indian pharmaceutical industry Manufacturin
Slide 22: Three Pillars to drive growth going forward
Three Pillars to drive growth going forward Accelerate ● Innovations to focus on portfolio diversification and expansion growth of Core Brands with an aim to recruit new customers ● Differentiated propositions supported by strong GTM ● Build scale in international business by focusing on SAARC, MEA
Slide 23: Accelerate growth of Core Brands
Three Pillars to drive growth going forward (cont’d.) Accelerate growth of Core Brands Innovation in times of COVID Differentiated propositions High protein Germ fighter Sugar Free Green Nycil Sanitizer content formula Very strong “naturals” Effective energy booster Complan Nutrigro Complan Sachet p
Slide 24: Expanding Geographical footprints
Three Pillars to drive growth going forward (cont’d.) Expanding Geographical footprints Pakistan Kuwait Bahrain Saudi Arabia Nepal Bhutan Qatar Sudan UAE Myanmar Nigeria Oman Bangladesh Maldives Malaysia Uganda Sri Lanka Kenya Tanzania Zambia Mauritius South Africa New Zealand The Company continues
Slide 25: Leverage M&A to significantly grow scale
Three Pillars to drive growth going forward (cont’d.) Leverage M&A to significantly grow scale Track record of successfully integrating acquisitions 100% Acquisition of Heinz India Private Limited (HIPL) Evaluate additional opportunities Enabled Zydus Gained a portfolio Added complementary Wellness
Slide 26: Recent updates
Recent updates 24
Slide 27: Managing the COVID Crisis
Managing the COVID Crisis – Creating opportunities out of challenges Operations & People Employees Manufacturing Distribution Employees quickly adapted to Working from Resumed operations during lockdown to run Opened few CFAs by the end of March 20, Home aided by robust IT infrastructure essen
Slide 28: Integration of Heinz India Private Limited (HIPL)
Integration of Heinz India Private Limited (HIPL) Market strategy Team Integration Channel Partners Seller Integration Outlet Coverage Expansion Completed in Sep-19 Completed in Nov-19 Completed in Dec-19 Ongoing Project Shakti to identify 1.5x coverage expansion Each level went through Chan
Slide 29: Appendix
Appendix
Slide 30: Zydus Wellness - Consolidated P&L
Zydus Wellness - Consolidated P&L INR Lakh FY18 FY19 FY20 Q1 FY20 Q1 FY21 Revenue from Operations 52,114 84,282 1,76,682 62,025 53,737 Other Income 3,506 3,888 1,071 303 182 Total Income 55,620 88,170 1,77,753 62,328 53,919 Expenses: Cost of materials consumed 16,018 29,263 75,382 12,926 10,945 Purc
Slide 31: Consolidated Balance sheet (1/2)
Zydus Wellness - Consolidated Balance sheet (1/2) INR Lakh FY18 FY19 FY20 ASSETS Non-Current Assets: Property, plant and equipment 8,090 20,742 18,877 Capital work-in-progress 24 1,031 353 Right of use assets - - 1,590 Goodwill 2,282 3,81,974 3,92,002 Other intangible assets 16 54,026 54,883 Financi
Slide 32: Consolidated Balance sheet (2/2)
Zydus Wellness - Consolidated Balance sheet (2/2) INR Lakh FY18 FY19 FY20 EQUITY AND LIABILITIES Equity Equity share capital 3,907 5,766 5,766 Other equity 65,212 3,32,862 3,40,300 Non controlling interests 1,316 - - Total Equity 70,435 3,38,628 3,46,066 Liabilities Non-Current Liabilities Financial
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