Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — FY2020 Earnings Presentation
37 slides from Ibnsina Pharma's earnings presentation, 2021
Slide 1: Investor Presentation FY 2020 Results
Investor Presentation FY 2020 Results Egypt’s Fastest Growing Pharmaceutical Distributor § 2nd largest pharmaceutical distributor with a market share of 22.4% § c.46k clients served annually through a network of 63 operational sites and a fleet of 752 vehicles § 5-year revenue CAGR of 21% compared t
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 20 years Experience in pharmaceutical distribution #1 Growing pharmaceutical distributor in Egypt 2nd Largest pharmaceutical distributor with 22.4% market share in FY2020 c.46 k Retail pharmacies, hospitals & wholesalers served in FY2020 Over 360
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 22.4% Nationwide distributio
Slide 6: Strategies Timeline
Strategies Timeline … 2015 Expansion Strategy: 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 Printemps Redoute (“PPR”) operational proces
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 7 Platforms and main warehouse 47 Distribution Centers (DC) 268 297 3.1%0.4% 1 Tender DC 2 Reverse Logistics Warehouses 16.3%
Slide 8: Leveraging our network to serve our c.46k customers nationwide
II Introduction to the Company …and leveraging our network to serve our c.46k customers nationwide Clients by Geography (FY2020) 14.7% 14.9% 11.7% 13.0% 30.6% 31.4% 12.4% 43.8% 19.2% 40.0% 25.0% 25.7% 28.9% 28.9% 32.1% 27.8% 46,256 42,465 870 2,921 Retail Pharmacies Wholesale Clients Hospital Client
Slide 9: Key Investment Highlights
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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/III)
II Key Investment Highlights 2 Attractive Industry Dynamics (I/III) Low healthcare and pharmaceutical expenditure with unparalleled growth potential Healthcare Sector Overview Health Expenditure per capita vs GDP per capita (USD) - 2018 Healthcare Expenditure % of GDP (2018) Egyptian Household Expen
Slide 13: Attractive Industry Dynamics (II/III)
II Key Investment Highlights 2 Attractive Industry Dynamics (II/III) 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
Slide 14: Attractive Industry Dynamics (III/III)
III Key Investment Highlights 2 Attractive Industry Dynamics (III/III) A highly defensive sector with significant room for continued growth Pharma Total Market Share Market Segmentation I Market Share FY2019 Public Sector 3% Novartis 6.6% Pharco 4.1% ISP 21.7% GSK 5.1% Ezaby 2% UCP Seif 1% Sanofi 5.
Slide 15: 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 35.3% 32.7% ( +2.3%) ISP Market Share Progression 22.4% 21.3% 20.5% 19.2% 2011 9.9% 2020 16.8%
Slide 16: Efficient Business Model (I/III)
III Key Investment Highlights 4 Efficient Business Model (I/III) 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 a
Slide 17: Efficient Business Model (II/III)
4 Efficient Business Model (II/III) Digital strategy leverages unique B2B/B2C platforms to fuel data-driven growth B2B Stream Ibnsina Pharma’s digital strategy envisions the continuous introduction of products that serve each link in the pharmaceutical industry supply chain, digitizing everyday oper
Slide 18: 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 19: Robust Financial Performance
6 Robust Financial Performance Robust financial performance with double digit top line growth and strong margins FY20 FY20 FY20 FY20 Net Revenues Gross Profit EBITDA Net Profit EGP 18.7 BN EGP 1.5 BN EGP 689.1 MN EGP 224.8 MN ▲ 12.5% y-o-y ▲ 1.9% y-o-y ▼ 11.4% y-o-y ▼ 31.6% y-o-y Source: Company Man
Slide 20: 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 23% CAGR 25% CAGR 28% 2 0 . % 4.2% 4.2% 4.5% 8.6% 8.4% 8.7% 4.7% 7.3% 7.9% 7.9
Slide 21: 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 2017 2018 2019 1H 2020 9M 2020 2020 36 38 36 Inventory 34 34 36 days days days days days days 83 98 92 83 89 95 days Receivables days days days day
Slide 22: 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 23: Network Optimization and Investment Plan
Network Optimization and Investment Plan 23
Slide 24: Focus On Network Optimization
Focus On Network Optimization Reducing supply chain costs by maximizing productivity and asset utilization Network Optimization Plan Management is implementing a Network Optimization Plan that will enable Ibnsina Pharma to continue investing efficiently and expanding its footprint while lightening t
Slide 25: Targeted Cost Reduction Strategy
Targeted Cost Reduction Strategy Engendering cost efficiencies across operations with an eye to sustainability Year-on-Year OPEX Growth Hedging against pandemic-related Further recruitment has been 20% put on hold. market uncertainty, Ibnsina Pharma has adopted a cost reduction 10% strategy which wi
Slide 26: Investment Strategy
Investment Strategy Ibnsina Pharma has finalized a calibrated plan for investments and acquisitions that will allow the company to further deliver on its strategy of backward integration, expand its footprint in the field of digital healthcare, and further enhance its logistical capabilities. Key Ta
Slide 27: Appendix
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Slide 28: 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 29: Experienced Management Team
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 30: Experienced Management Team
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 31: Experienced Management Team
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 32: 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 33: Income Statement
IV Appendix Income Statement In EGP FY2017 FY2018 FY2019 FY2020 YoY p Gross Revenue 9,818,405 13,677,881 17,001,529 19,224,978 13.1% Net Revenue 9,586,344 13,323,674 16,600,460 18,678,959 Cost Of Revenue (8,759,914) (12,199,359) (15,161,005) (17,212,098) Gross Profit 826,430 1,124,315 1,439,455 1,46
Slide 34: Balance Sheet
IV Appendix Balance Sheet In EGP FY2017 FY2018 FY2019 FY2020 Property & Equipment, net 210,264 438,420 898,220 952,716 Projects Under Construction, net 161,267 336,288 160,910 219,916 Other Assets 8,804 7,641 8,494 6,905 Leased Assets, net - - 61,477 54,023 Long Term NR - 10,998 101,035 113,840 Defe
Slide 35: Cash Flow
IV Appendix Cash Flow In EGP ‘000 FY2017 FY2018 FY2019 FY2020 Cash flow from operating activities: Net profit before tax 227,697 355,857 420,883 292,340 Adjustments for: Depreciation of fixed assets 28,526 41,421 86,229 131,121 Amortization of leased assets 2,570 - - Allowance for impairment of acco
Slide 36: Contact Information
Contents ¡1 Executive Summary ¡2 Company Overview ¡3 Key Investment Highlights ¡4 Financial Performance Review ¡5 Contact Information Contact Information 36
Slide 37: Contact Information
V Contact Information Contact Information Mohamed Mahmoud Shawky Investor Relations & Corporate Communication Manager Tel.: +2010 00852771 Email: mohamed.shawky@Ibnsina-pharma.com 37