Slide 1: Investor Presentation Q2 & H1 FY22
Investor Presentation Q2 & H1 FY22 November 10, 2021 BSE: 524404 | NSE: M ARK SANS | ISIN: INE750C 01 026 ©2021 – Marksans Pharma Limited, All Rights Reserved. ©2021 – Marksans Pharma Limited, All Rights Reserved. 1
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may
Slide 3: Q2 & H1 FY22 Earnings
Q2 & H1 FY22 Earnings BSE: 524404 | NSE: M ARK SANS | ISIN: INE750C 01 026 ©2021 – Marksans Pharma Limited, All Rights Reserved. ©2021 – Marksans Pharma Limited, All Rights Reserved. 3
Slide 4: Management Commentary
Management Commentary We had a challenging half year with geopolitical issues impacting shipments and inputs. Our revenue growth of 3.3 percent in H1FY22 was driven by the increasing penetration in EU and North American markets. Higher raw material, freight and packaging costs impacted margins howev
Slide 5: H1FY22 Highlights
H1FY22 Highlights Revenues EBITDA PAT EPS ₹ 710.2 Cr ₹ 137.4 Cr ₹ 108.9 Cr ₹ 2.6 3.3% YoY (10.3)% YoY 8.8% YoY 8.8% YoY (320) Bps 50 Bps Financial Highlights Business Highlights Preferential Issue ▪ Operating Revenue was ₹ 710.2 cr. ; growth ▪ R&D spend of ₹ 14.4 cr. at 2.0% of sales in ▪ Issued 493
Slide 6: Financial Highlights – Profit and Loss Statement
Financial Highlights – Profit and Loss Statement Particulars (₹ cr.) H1FY22 H1FY21 YoY Q2FY22 Q1FY22 Q2FY21 YoY Operating Revenue 710.2 687.6 3.3% 361.2 349.0 356.5 1.3% Gross Profit 372.5 384.4 (3.1)% 185.8 186.7 192.8 (3.6)% Gross Profit Margin % 52.5% 55.9% (340) Bps 51.4% 53.5% 54.1% (270) Bps E
Slide 7: Consistent Performance on yearly basis
Consistent Performance on yearly basis Operating Gross Profit (₹ cr.) & EBITDA (₹ cr.) & PAT (₹ cr.) & Revenue (₹ cr.) Gross Profit Margin % EBITDA Margin % PAT Margin 720 400 100% 160 100% 115 100% 153.2 710.2 395 90% 150 90% 90% 710 110 108.9 390 80% 80% 80% 140 137.4 700 384.4 105 385 70% 70% 70%
Slide 8: H1 FY22 Geographical Performance
H1 FY22 Geographical Performance Commentary on Geographical Performance RoW ▪ US, North America was the highest contributor at ₹306.1 4.1% cr. and witnessed 1.2% growth in H1FY22 Australia 9.8% ▪ EU, UK formulations market recorded 6.7% growth at ₹ Europe, UK 305.1 cr. in H1FY22 43.0% ▪ Australia, N
Slide 9: Company Overview
Company Overview BSE: 524404 | NSE: M ARK SANS | ISIN: INE750C 01 026 ©2021 – Marksans Pharma Limited, All Rights Reserved. ©2021 – Marksans Pharma Limited, All Rights Reserved. 9
Slide 10: Business Overview
Business Overview Marksans Pharma Ltd., headquartered at Mumbai, is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulations Key focus areas lie in Company manufactures tablets ~95% Forward-integrated Manufacturing facilities OTC & prescription (plain, enteric coated and
Slide 11: Group Structure
Group Structure Distribution of quality generic pharma Manufacturer 162+ Manufacturer of Only OTC of OTC Liquids product range of OTC & Rx & Ointments licenses; products; Regional sales development 450+ Wholesale 50+ products portfolio across Asia (China, Japan, OTC/SKU distributor of Singapore, Vie
Slide 12: Investment Rationale
Investment Rationale Sustainable business model with strategic focus on regulated markets with markets of USA, UK, Australia , New Zealand , Canada contributing to c. 95% of total revenues (FY21). Delivering robust and consistent financial USFDA, UKMHRA, TGA-Australia accredited performance with FY1
Slide 13: Differentiated model - Regulated Markets Focus
Differentiated model- Regulated Markets Focus Global Footprint Regulatory Approvals Acquired key players in major markets to expand its global These markets are empowered with regulatory approvals which allows the Revenue Mix footprint company to sell its products without restrictions 3.00% 3.40% 5.
Slide 14: Differentiated model – Forward Integration
Differentiated model – Forward Integration Supply chain R&D Manufacturing End Consumers and distribution Australia Goa, India Navi Mumbai, India Goa, India Pharmacy Stores United Kingdom, Europe Southport, United Kingdom Southport, Retail Chains United Kingdom United States, Canada Hospitals Farming
Slide 15: Differentiated model – Accredited facilities across key regions
Differentiated model – Accredited facilities across key regions (Manufacturing Facilities) Manufacturing Facility Capacity Accreditations Goa, India 8 bn softgel and hard gelatin capsules and ▪ Manufactures oral solid tablets, tablets per annum and soft and hard gelatin capsules ▪ Ongoing expansion
Slide 16: Our strategic growth drivers of the past…
Our strategic growth drivers of the past… Strategy Growth Levers Increased presence in Consistently focused on the niche soft gel segment which softgel segment gives higher margins Acquired front end companies which give access to local Forward Integration brands and large wholesalers thereby enabli
Slide 17: ...along with Accretive Acquisitions…
...along with Accretive Acquisitions… Successful Track Record of Integrating Acquisitions Acquisitions Nova Pharmaceuticals Bell Sons & Co. Relonchem Time-Cap Laboratories Target Country Australia United Kingdom United Kingdom United States Transaction Date March 24, 2006 December 31, 2007 August 27
Slide 18: ..And Consistent Product Launches..
..And Consistent Product Launches.. RECENT KEY PRODUCT LAUNCHES BRAND COMPOSITION THERAPY SEGMENT MARKET METOZOLV (H1FY22) Metoclopramide 10MG Gastrointestinal UK CRESTOR (H1FY22) Rosuvastatin - 5,10, 20, 40 MG Cardiovascular UK COZAAR Losartan Potassium – 25, 50 & 100 MG Cardiovascular UK TAZAC, AX
Slide 19: …have led to Marksans of Today..
…have led to Marksans of Today.. FY17 FY21 Business: Regulated markets: ₹ 741.6 crs Regulated markets: ₹ 1313.8 crs Regulated Markets Focus Emerging markets: ₹ 32.9 crs Emerging markets: ₹ 62.3 crs Products 100+ ~300 Manufacturing Goa: 6 billion capsules and tablets p.a. Goa: 8 billion capsules and
Slide 20: ...with consistent financial performance over the years…
...with consistent financial performance over the years… Operating Revenue (₹ cr.) Gross Profit (₹ cr.) & Gross Profit Margin (%) 1000 56.8% 60.00% 50.2% 49.9% 1,376.2 781.1 1,500.0 42.7% 50.00% 40.2% 1,134.2 1,000.1 566.4 40.00% 1,000.0 912.7 502.1 767.2 500 389.6 30.00% 308.4 20.00% 500.0 10.00% 0
Slide 21: ...with consistent financial performance over the years (cont’d)…
...with consistent financial performance over the years (cont’d)… ROE ROCE (%) 30.00% 26.9% 35.00% 32.6% 30.00% 25.00% 24.6% 20.00% 19.0% 25.00% 19.1% 14.8% 20.00% 15.00% 15.00% 10.4% 10.00% 7.6% 10.00% 5.00% 2.6% 5.00% 3.2% 0.00% 0.00% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Debt to E
Slide 22: ..and Presence in Diverse Segments
..and Presence in Diverse Segments Therapeutic Segment-Wise YoY Segment Revenue YoY 10.2% 6.8% 8.2% 11.7% 13.9% 7.5% 8.3% 8.6% 8.6% 7.3% 44.1% 12.0% 8.8% 20.6% 18.4% 10.9% 51.0% 58.0% 54.7% 58.6% 5.2% 11.7% 6.0% 6.3% 6.7% 14.2% 9.0% 12.4% 13.8% 13.1% 9.0% 14.6% 15.4% 15.4% 14.5% 55.9% 49.0% 45.3% 43
Slide 23: Geography wise performance – US Business
Geography wise performance – US Business Company Presence Overview of the market ▪ In June 2015, Marksans acquired Time-Cap Labs which ▪ The US holds over 30-40% of the global pharmaceutical enabled Marksans to establish proprietary marketing market. Nominal spend on medicine is expected to grow at
Slide 24: USA- Unique Advantage of Own Manufacturing and Marketing
USA- Unique Advantage of Own Manufacturing and Marketing Old Business Positioning New Business Positioning Acquired entity Outsourced Distributor / 3rd party pharma co Manufacturer & Distributor of OTC & Rx Distributors Distributors Large Wholesalers Pharmacies / Government Distributor 1 Distributor
Slide 25: Growth levers for the future – US business
Growth levers for the future – US business Revenue FY21 Organic Growth New Products in Pipeline Inorganic Growth Revenue FY25 ▪ 50+ products in various ▪ Expanding presence in other ▪ 25 products identified with a ▪ Planning to acquire ANDAs ▪ To achieve a sustainable therapy area segments North Ame
Slide 26: Geography wise performance – UK Business
Geography wise performance – UK Business Company Presence Overview of the market ▪ One of the top 5 Indian pharma companies in the UK. ▪ The UK pharmaceutical market is estimated to grow by a ▪ Relonchem and Bell have partnered with leading UK CAGR of 3.6% to ~USD 34.0 billion by 2023, driven primar
Slide 27: UK- OTC Positioning gives Marksans the Right to Win
UK- OTC Positioning gives Marksans the Right to Win Trends in the category Marksans Presence ▪ The UK is one of the largest Rx-to-OTC switch markets in EU Strong OTC presence in Europe, ▪ Large number of registered remedies sold with a subsidiary in UK outside pharmacies Geography ▪ FMCG oriented OT
Slide 28: Growth levers for the future – UK business
Growth levers for the future – UK business Revenue FY21 Organic Growth New Products in Pipeline Inorganic Growth Revenue FY25 ▪ Wide UK customer base and ▪ Working on receiving USFDA ▪ Developed a range of ▪ For rapid expansion into ▪ Sustainable revenue growth 100% reach within the approval for the
Slide 29: Australia Region Business
Australia Region Business Company Presence Overview of the market ▪ Marksans carries out business operations in Australia ▪ Australia and New Zealand will ▪ Australia’s pharmaceutical and New Zealand through its subsidiary Nova continue to remain focus markets market is set to rise to USD Pharmaceut
Slide 30: Rest of the World
Rest of the World Company Presence Overview of the market ▪ ROW includes markets of South ▪ Presence in emerging markets such as South East Asia, ▪ Spending in emerging markets is East Asia, MENA, Russian MENA, LATAM, CIS and Africa expected to grow at ~5% CAGR to Federation & Africa reach USD 475 b
Slide 31: Our Future Growth Strategy…
Our Future Growth Strategy… Strategy Growth Levers The company generates ~95% of its revenue from regulated markets and Expansion expects to further expand in these markets through continued push of Expansion of current product portfolio in regulated market existing products and new launches in regu
Slide 32: … guided by well rounded Board with Global Expertise…
… guided by well rounded Board with Global Expertise… Mark Saldanha Sandra Saldanha Varddhman Jain Seetharama Raju Buddharaju Founder, Chairman & Promoter, Whole-Time Director Independent Director Managing Director Whole-Time Director ▪ Science Graduate ▪ MA in Arts (Sociology) ▪ M. Pharm (Pharmaceu
Slide 33: … guided by well rounded Board with Global Expertise…
… guided by well rounded Board with Global Expertise… Abhinna Sundar Mohanty Digant Mahesh Parikh Dr. Meena Rani Surana Dr. Sunny Sharma Independent Director Independent Director Independent Director Non-Executive Director ▪ M.Sc., Mathematics ▪ MBA, Finance ▪ B. Pharm., Ph.D in Pharmaceutics ▪ MBA,
Slide 34: … and driven by Experienced Leadership Team
… and driven by Experienced Leadership Team Mark Saldanha Varddhman Jain Sathish Kumar Anjani Kumar David Mohammed Jitendra M Sharma Founder, Chairman & Whole-Time Director MD – Marksans Pharma COO – Global Operations MD- Pharmaceuticals Chief Financial Officer Managing Director UK Ltd. and USA Aust
Slide 35: Shareholder Information
Shareholder Information Share Information (as on Sep 30, 2021) NSE Ticker MARKSANS Promoters 48.25% BSE Ticker 524404 (Shares pledged: Nil) Others Market Cap (₹ Cr) 2,824.2 48.05% % free-float 51.8% Free-float market cap (₹ Cr) 1,461.5 Shares Outstanding 40,93,13,698 3M ADTV (Shares)* 31,88,715 3M A
Slide 36: ESG Philosophy
ESG Philosophy Environmental Social Governance ▪ Efficient use of resources to ▪ Company is actively contributing to ▪ Committed to good corporate minimize the waste generation. the social and economic governance to achieve long term development and build a better corporate goals and to enhance ▪ Pr
Slide 37: ESG Philosophy
ESG Philosophy Environmental Social Governance ▪ Procured 2.9 million units of ▪ Organized certified courses for ▪ Committed to good corporate renewable energy in FY21 enhancing employees’ management governance to achieve long term and technical skills corporate goals and to enhance ▪ ₹ 1.1 cr. spen
Slide 38: For more information please contact: Investor Relations Team
For more information please contact: Investor Relations Team Jitendra Sharma Ravi Udeshi/ Rahul Thakur Corporate Office (CFO) 11th Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Marksans Pharma Ltd Christensen Investor Relations Mumbai – 400 053, Maharashtra - India Tel: +