Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q2 FY21 Earnings Presentation
33 slides from Neuland Laboratories's earnings presentation, Nov 3, 2020
Slide 1: Exchange cover letter: Press Release and Investors/Analysts Presentation
NEULAND WHERE OPPORTUNITY BECOMES REAUTY Neuland Laboratories limited Sanali Info Park, 'A' Block, Ground Floor, 8-2-120/113 Road No.2, Banjara Hills Hyderabad - 500 034. Telangana, India. Tel: 040 30211600 /23551081 Fax: 040 3021 1602 Email: neuland@neulandlabs.com www.neu landlabs.com November 3,
Slide 2: Neuland Q2 FY21 income at Rs.242.0 crore; up 29.6%
Neuland Q2 FY21 income at Rs.242.0 crore; up 29.6% EBITDA margins improve by 350 bps Hyderabad, India, November 3, 2020 – Neuland Laboratories Limited (NLL) (NSE: NEULANDLAB; BSE:524558), a pharmaceutical manufacturer providing active pharmaceutical ingredients (APIs), complex intermediates and cust
Slide 3: About Neuland Laboratories Limited
About Neuland Laboratories Limited For over 36 years, Neuland Labs has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close to 80 countries. Neuland Labs has developed more than 300 processes and 75 APIs and has filed over 898+ Regula
Slide 4: Earnings Presentation Q2FY21
Earnings Presentation Q2FY21 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved. 1
Slide 5: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 6: Table of Contents
Table of Contents 1 Q2 & H1 FY21 Highlights 2 Business Overview 3 Capabilities 4 Financials 5 Outlook
Slide 7: Q2 & H1 FY21 Highlights
Q2 & H1 FY21 Highlights 4
Slide 8: Management Speak
Management Speak - Sucheth Davuluri - Saharsh Davuluri Vice-Chairman & Chief Executive Officer Vice-Chairman & Managing Director “We are pleased to report a record quarterly “The CMS business is continuing to drive growth revenue of Rs.242 crores. The revenue growth of with good performance from the
Slide 9: Operational Highlights – YoY
Operational Highlights – YoY H1 FY21 Total income increased by 21.7% led by growth in all 3 segments EBITDA margins increased by 480 bps to 16.9% PBT margins increased by 550 bps and PAT margins increased by 430 bps Q2 FY21 Total income increased by 29.6% in Q2FY21 on account of balanced gro
Slide 10: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) QoQ YoY YoY Particulars (Rs. Cr) Q2FY21 Q1FY21 Q2FY20 H1FY21 H1FY20 (%) (%) (%) Total Income 242.0 206.1 17.4% 186.8 29.6% 448.1 368.3 21.7% EBITDA 41.4 34.4 20.1% 25.4 62.8% 75.8 44.5 70.4% EBITDA Margin 17.1% 16.7% 40 bps 13.6% 350 bps 16.9% 12.1% 480 bps Profi
Slide 11: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 2% 2% 6% 5% 2% 2% 7% 6% 22% 27% 31% 25% 28% 31% 23% 26% 18% 28% 24% 24% 20% 20% 25% 25% 51% 48% 47% 46% 47% 42% 47% 42% H1FY20 H1FY21 Q2FY20 Q2FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Prime Niche/Speciality CMS Others Prime Niche/Speciality CMS
Slide 12: Key Operating Metrics - CMS Revenue Split
Key Operating Metrics - CMS Revenue Split 50 71 27 30 57 21 40 17 19 26 49 27 27 9 22 22 18 27 8 6 9 5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Rs. In Cr H1FY20 H1FY21 Rs. In Cr FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 Commercial 57 71 Commercial 9 19 26 17 40 30 27 21 50 Development 27 49 Development 5 8 6 1
Slide 13: No of CMS Active Projects Increasing
No of CMS Active Projects Increasing Q2 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 14 4 6 3 10 6 43 Intermediate 7 4 2 5 8 9 35 Grand Total 21 8 8 8 18 15 78 Q1 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 12 4 5 4 9 6 40 Intermediate 7 4 2 6 8 9 36
Slide 14: Well placed for a post COVID world
Well placed for a post COVID world Shortening the supply chain and de-risking the vendor base Placed reserve manpower in Manufacturing and Quality functions to meet customer requirements Ready to meet changing regulatory requirements via online audits Continued focus on Business Development
Slide 15: Business Overview
Business Overview 12
Slide 16: Company Overview
Company Overview Legacy Scale Capability Reach Expertise: 36+ years Mfg. Facilities: 3 Product portfolio: 75+ Presence : 80+ backed by robust regulatory approved across 10 therapeutic countries quality systems, with 731 KL capacity categories regulatory & compliance Export revenues: 75% framework Re
Slide 17: Our Journey - Key Milestones
Our Journey - Key Milestones Laying Strong Foundation Deepening our Capabilities Increased Sustainable Growth 2013 -Today 1984-2003 2004-2012 Strategic alignment of 100 Mn+ Revenue Separate R&D business towards Acquisition Over 75 Live CMS Centre Established niche API’s & R&D of advanced Projects 15
Slide 18: Business Verticals
Business Verticals Work executed exclusively for the customers on Mature APIs, typically with products at various phases high competition in the API of their life-cycle Custom space Manufacturing Prime Solutions (CMS) Prime APIs and Specialty APIs collectively form Specialty Generic Drugs Substance
Slide 19: Our Global Presence
Our Global Presence NORTH AMERICA 31% EUROPE 48% APAC 4% JAPAN 5% MENA 8% INDIA 1% BD Office in Princeton, New Jersey Since 2004 LATAM 3% Our BD Office in JAPAN Since 2007 10+ CMS projects with Japanese Innovators Working with a Big Japanese Pharma company for the * % Refers to FY20 Sales by end mar
Slide 20: Generic Drug Substance (GDS)
Generic Drug Substance(GDS) Prime APIs Capability Business Approach Strategy Forward 3 US FDA and EU GMP Work on molecules either Maintain leadership compliant manufacturing with a business leadership position in key molecule facilities approach or partnership Work on process Collective ca
Slide 21: Custom Manufacturing Solutions (CMS)
Custom Manufacturing Solutions(CMS) Services Business Approach Strategy Forward Manufacturing API to Local presence in US Add depth in technical customer and Japan with capabilities specifications technical as well as Investment in QBD Designing and commercial labs, process developing empl
Slide 22: Competitive Advantage
Competitive Advantage Transparent Excellent Communication & Sizeable Product Balanced Collaborative Project Basket Portfolio skills Management GDS (Generic CMS (Custom Drug Manufacturing Substances) Solution Customer- Presence in Strong centric approach Strategic Regulated pipeline of helps to provi
Slide 23: Capabilities
Capabilities 20
Slide 24: Neuland Manufacturing Facilities
Neuland Manufacturing Facilities U1, Bonthapally, U2, Pashamylaram, U3, Gaddapotharam, Unit Hyderabad 222.5 KL Hyderabad 310.2 KL Hyderabad 197 KL Year of 1986 1994 2017 establishment Mirtazapine, Sotalol Hcl, Levetiracetam, Levofloxacin, Ciprofloxacin Hcl, Entacapone, Products including Key Key pro
Slide 25: State-of-the-art R&D Centre
State-of-the-art R&D Centre Infrastructure • 15 Development Labs with space for expansion • 60 Fume hoods R&D Facility, Hyderabad • Analytical Labs • Dedicated kilo Lab for Scale up • Dedicated Labs for Peptides • Separate facility for D2 analogues Significant R&D Achievements: • Several NCE APIs ad
Slide 26: Regulatory Filings
Regulatory Filings 30 Filings with 10 19 Japanese DMF China DMF filed Health Canada 55 DMFs with USFDA 213 18 22 ROW filings including Turkey, filings with filings with TGA KFDA Korea Mexico, Brazil etc ~489 EUDMF filings across Germany, 24 CEPs Received for different 898+ France, Poland, products F
Slide 27: Financials
Financials 24
Slide 28: Income Statement
Income Statement Financial Performance Highlights 800 • Revenue CAGR of 19.8% for FY 18-20 led by growth in all 3 businesses 600 • EBITDA growth of 38.9% CAGR in FY 100 18-20 due to high margin CMS business and increase in GDS contribution * 400 • Change in business mix with increasing amount of mar
Slide 29: Balance Sheet
Balance Sheet Particulars Mar-19 Mar-20 Sep-20 (Rs. Cr) Current Ratio (x) ROCE (%) Shareholders' 696 706 742 1.45 11.14 funds 1.42 7.60 1.37 3.89 Net Debt 194 214 194 2019 2020 2021 (H1) 2019 2020 2021 (H1) Investments 8 8 8 Fixed Asset Turnover (x) Debt to Equity (x)* Tangible Assets 367 391 423 0.
Slide 30: Outlook
Outlook 27
Slide 31: Growth Strategy for Business
Growth Strategy for Business Business Scale Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS and CMS accelerate business growth business Chemistry Relationships Deploy advanced Leverage on Long – chemistry skills to add standing relationships with
Slide 32: Contact us
Contact us About Neuland Laboratories Limited For over 36 years, Neuland Laboratories Ltd. (BSE:524558, For further information contact: NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing IR Desk facilities, working with customers in close to 80 countries
Slide 33: Thank you
Thank you Confidential. © 2020 Neuland Laboratories Ltd. All rights reserved. 30