Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — FY2022 Earnings Presentation
21 slides from Ibnsina Pharma's earnings presentation, December 2022
Slide 1: Ibnsina Pharma Investor Presentation
Ibnsina Pharma Investor Presentation Egypt’s Fastest Growing Pharmaceutical Distributor § Largest pharmaceutical distributor with a market share of 23% in December 2022 § ~47k clients served annually through a network of 65 operational sites and a fleet of 803 vehicles § 5-year revenue CAGR of 23% c
Slide 2: The global economy has witnessed some challenges since the beginning of this year
The global economy has witnessed some challenges since the beginning of this year … Petrol Barrel Price Federal Effective Funds Rate The global economy has witnessed some 105 104 108 116 110 96 3.8% 4.1% 1 challenges during this year specially after the 79 89 85 95 85 81 3.1% 3.1% Russian Ukraine Wa
Slide 3: Pharma grew in 2022 by 12.1% and expected to grow ~15-16% in 2023
… however, the pharma grew in 2022 by 12.1% and expected to grow by ~15-16% in 2023 with a declining rate for the retail contribution … Market Growth Drivers Retail Pharma Market Growth (Billions) Non-Retail Market Composition – Excluding Tender Retail Whole sale Private Hos . Ageing & Growing 13-22
Slide 4: Income Statement
Income Statement Income Statement FY 2022 consolidated FY 2022 FY 2021 Growth Description Value % Value % Value % OPEX Insights Total Sales 22,916,899,273 100.0% 22,414,112,190 100.0% 502,787,083 2.2% Cash Discount Given (652,404,173) (2.8 %) (681,279,399) (3.0 %) 28,875,226 (4.2 %) Gross profit mar
Slide 5: ISP's strategic direction covers six main strategic pillars
ISP’s strategic direction covers six main strategic pillars 1 Sustainable Growth through Differentiation 2 Working Capital Enhancement 3 OPEX Optimization 4 Digitalization Empowerment 5 Investment Diversification 6 Collaterals Liquidation 5
Slide 6: ISPH adopts multiple profitable growth tactics
ISPH adopts multiple Profitable growth tactics 1-Sustainable Growth through Differentiation 01 Increasing sales of imported products specially exclusively distributed by ibnsina pharma 02 Acquire and distribute more exclusive products from local suppliers 03 Focus on profitable segments and cash-bas
Slide 7: Importation Companies in 2022
Importation Companies in 2022 7
Slide 8: Working Capital Optimization
Working Capital Optimization : 5 days decrease in CCC and 564 Mn decrease in net debt Working Capital Enhancement Working Capital Forecast Net Debt , Net Debt to Equity Forecast 6 1 2 5 % 1 0 5 % 5 1.2x 2.6x 3.05X 2.57X CCC CCC CCC 8 5 % 4 3.60 3.81 9.4 Days 8.7 Days 3 .71 Days 3.24 6 5 % 3 4 5 % 2
Slide 9: Optimizing supply chain network and working capital to improve productivity rate
Optimizing supply chain network and working capital to improve productivity rate OPEX Optimization Supply Chain Working Capital Productivity 01 Optimization 02 Enhancement 03 Improvement 1. Consolidating current network to Receivables – Client Side Organization Structure & Manpower achieve higher ef
Slide 10: Concrete digital infrastructure to support ISPH Strategy
Concrete digital infrastructure to support ISPH Strategy Digitalization Empowerment 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 , customer service and orders from dealing pha
Slide 11: In order to diversify the investment, AIM is currently investing in four companies
In order to diversify the investment, AIM is currently investing in four companies … Investment Diversification Ramp Logistics § Ramp is a leading supply chain & third-party logistics (3PL) provider established by Ibnsina Pharma to cater for the growing demand for warehousing and transportation outs
Slide 12: In order to diversify the investment, AIM is currently investing in four companies
In order to diversify the investment, AIM is currently investing in four companies … Investment Diversification El Shorouk Hospital § Unique licensed, furnished and ready-to-operate hospital in an underserved geographical location. The only 5 stars general hospital within El Shorouk (only B- & C cla
Slide 13: Diversification by tapping into the high margin logistics sector through Ramp Logistics
Diversification by tapping into the high margin logistics sector through Ramp logistics … Investment Diversification 1- 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 a
Slide 14: Ibnsina Trade will focus on three main areas
Ibnsina Trade will focus on three main areas Investment Diversification MEDICAL PROMOTION SERVICE 1 2 Ibnsina Trade IST Export Non-Pharmaceutical Distribution 3 14
Slide 15: Medical promotion service
Medical promotion service Investment Diversification MEDICAL PROMOTION SERVICE CLIENTS § An asset light business model § Market size of EGP ~2bn § Net Profit Margin of 25% § Objective to acquire 30% coming 3 years § Finalized a contract in Q4 2022 with Sandoz § 2023 Plan is to add 4 more Suppliers T
Slide 16: The Export will focus on 4 main African countries
The Export will focus on 4 main African countries Investment Diversification EXPORT COUNTRIES There are two types of exported products: § Our Products o Select a product portfolio that is suitable for most of the African countries o Register or acquire the selected products in Egypt o Register our p
Slide 17: Non-pharmaceutical distribution
Non-pharmaceutical distribution Investment Diversification NON-PHARMACEUTICAL DISTRIBUTION TARGET SUPPLIERS § Build a dedicated supply chain that is designed according to products nature and Customer need (Big branches with low cost per meter) § Strengthen the current product list by acquiring new a
Slide 18: Diversification by tapping into the boosting Digital products & Services
Diversification by tapping into the boosting Digital products & Services … Investment Diversification 1- DIGI 360 Digi360 Target Customers A Digital Product , service & consulting company Female Pharmacies Consumers Main functions Development , support , SAS supported by sales & marketing activates
Slide 19: ISP taps into hospital business with the acquisition of El Sherouk hospital
ISP taps into hospital business with the acquisition of El Sherouk hospital Investment Diversification Sherouk Hospital Other Main Highlights: Location El-Shorouk City § Radiology department § Cosmetic services clinics § Complete dental units § Lab/Pharmacy El-Shorouk City, Badr, Cities Served Madin
Slide 20: An Investment plan covering higher-margin diversified businesses, distribution and treasury stocks
An Investment plan that covers investing in higher-margin diversified businesses, distribution business and treasury stocks 3- Investment Plan Treasury Stocks 625 M Board of Directors approved the purchase of treasury shares of 10% and its cancellation 266 Supporting stock performance and boosting 2
Slide 21: ibnsinapharma
ibnsinapharma