33 slides from Solara Active Pharma Sciences's investor presentation, Sep 24, 2020
Slide 1: Strong Foundation. Accelerating Growth.
STRONG FOUNDATION. ACCELERATING GROWTH.
Slide 2: Safe Harbor
Safe Harbor 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", "p
Slide 3: Solara Is A Young BUT An Experienced Company
Solara Is A Young BUT An Experienced Company… Demonstrated operational excellence over 3 decades • Demerged the select API business of Strides Shasun • Demerged Human API business from SeQuent to to integrate with human API business of SeQuent operate as Pure Play animal healthcare company • Expansi
Slide 4: Business Model Well Suited To Benefit From Emerging Trends
Solara’s Business Model Is Well Suited To Benefit From Emerging Trends… While the opportunity is growing, it needs a focused play USFDA’s increasing Supply chain IP conflicts and Increasing Pollution and oversight on APIs diversification competing interests Environmental Concerns • FDA’s increased o
Slide 5: Business Model Underpinned By Scale Of Operations and Depth In Capabilities
Solara’s Business Model Is Underpinned By Its Scale Of Operations and Depth In Capabilities… API business model with large scale infrastructure, wide products and established customer relationships Capabilities Research Complex chemistry capabilities including Pipeline of 25+ handling of catalytic h
Slide 6: Strong And Anchored Values Drive Actions With Stakeholders
Strong And Anchored Values Drive Actions Towards Positive Engagements With All Its Stakeholders… INTEGRITY Our business stands on the pillar of integrity, honesty and RESPECT fairness. Everything we do here We at Solara respect our stands the test of public Employees, Customers and scrutiny Partners
Slide 7: Solara Brings Solid Infrastructure In Manufacturing And R&D
Solara Brings Solid Infrastructure In Both Manufacturing And R&D… Experience Manufacturing Sites 30 + 6 Years of Legacy Solara At a People Research and Glance Development +2300 Centers Employees 2 Successful USFDA Audits 24 7
Slide 8: Solara Leadership Team Has More Than A Century Of Experience
Solara Leadership Team Has More Than A Century Of Collective And Relevant Experience Bharath R. Sesha (Bharath) Hariharan S. (Hari) MD & CEO Executive Director Bharath has over two decades of experience across Hariharan is a Cost Accountant with rich diverse industries. His expertise spans across th
Slide 9: Solara Leadership Team Has More Than A Century Of Experience
Solara Leadership Team Has More Than A Century Of Collective And Relevant Experience Roy Joseph Sundara Moorthy V. (Sundar) CHRO CQO Roy has over 30 years of multifaceted Sundar has rich and diversified experience of 23 years experience in industrial Relations, in the Quality Management, Regulatory
Slide 10: Solara Board Of Directors
Solara Board Of Directors Guide The Organization Based On Their Diverse And Rich Experience Deepak Vaidya Nirmal Bhogilal R. Ramakrishnan Independent Director Non-Exec. Director & Chairman Independent Director He is a practicing Chartered Fellow member of the ICA in Chairman of the Batliboi Accounta
Slide 11: Solara Well Poised For Accelerated Growth
2° SOLARA Solara Well Poised For Accelerated Growth
Slide 12: Solara Has Robust Manufacturing Capabilities
Solara Has Robust Manufacturing Capabilities… Core focus • Provide reliability to customers via mirror facilities for key products Ambernath • Deploy systems that are highly automated for ensuring consistent operations EU GMP • Focus on technology and production processes that represent a clear adva
Slide 13: Facilities Offer Wide Ranging Capabilities: Pondicherry, Cuddalore
Facilities Offer Wide Ranging Capabilities Suited For A Diverse Product Portfolio… Pondicherry Facility • The buildings for the manufacturing of Intermediates and isolation of final drug substance are separate. • Packing sections are controlled and meets ISO Class - 8 requirements. • Reactors are in
Slide 14: Facilities Offer Wide Ranging Capabilities: Mangalore, Ambernath
Facilities Offer Wide Ranging Capabilities Suited For A Diverse Product Portfolio… Multipurpose Mangalore Facility ▪ Multi purpose cGMP API and intermediate facility inspected by DCD, USFDA, WHO, EDQM, MFDS, TGA, AEMPS, ISO-14001 ▪ 6 Full fledged cleanrooms meeting ISO class-8 slandered can hand six
Slide 15: Commencement of phase 1 of new greenfield facility at Vizag
Solara announces commencement of phase 1 of its new greenfield facility at Vizag, India 15
Slide 16: Phase 1 Goes On Stream For Ibuprofen
Phase 1 goes on stream for Ibuprofen • 3,600 TPA new capacity goes on stream from Q2’21 • Ibuprofen capacity for Solara augments to 8,400 TPA with significant capacity commitments and long-term contracts • DCS controlled automation with compliance of 21CFR part 11. • Peak capacity expected to reach
Slide 17: In House R&D Enables Continuous Launch Of New Products
In House R&D Brings Significant Speed And Capabilities To Enable Continuous Launch Of New Products Two India based R&D Centre for best in class product development Technical Expertise Strong technical leadership to develop high-quality pharma products that create strategic value for our partners and
Slide 18: Strong Track Record Of Regulatory Approvals
A Strong Track Record Of Regulatory Approvals Provides Peace Of Mind To Our Customers… Latest Inspections at Regulatory Agency Puducherry Cuddalore Mangalore Ambernath United States Feb-2020 Mar-2020 Feb-2020 Jan-2019 Europe Nov-2014 Jan-2017 Sept-2017 Oct-2017 Geneva - Oct-2016 Feb-2018 - India Jun
Slide 19: Strong Track Record Of Regulatory Approvals
A Strong Track Record Of Regulatory Approvals Provides Peace Of Mind To Our Customers… Latest Inspections at Regulatory Agency Puducherry Cuddalore Mangalore Ambernath MFDS, South Korea Feb 2017 Nov 2012 Jul 2018 --- Mexico Sep 2015 Sep 2015 --- --- Slovenia Feb 2015 --- --- --- Denmark Oct 2008 Oct
Slide 20: A Growing Product Portfolio Enables Wider Opportunities
A Growing Product Portfolio Enables Wider Opportunities And Stronger Customer Relationships Rich basket of niche high value products for the global markets DMF FILING RUN RATE GEOGRAPHY WISE FILINGS 9 8 6 6 4 82 11 FY16 FY17 FY18 FY19 FY20 • 80+ Commercial APIs predominantly in Anthelmintic, Anti-ma
Slide 21: Financials
Financials Tete Pharma Scenes
Slide 22: FY20 - A Solid Year Of Operational Excellence
FY20 - A Solid year of operational excellence… Revenues ₹ 13,493m 4% YoY EBITDA ₹ 2,793m 21% YoY PAT ₹ 1,145m 71% YoY 22
Slide 23: FY20 – Strong Year For Operating Efficiencies And Profitability
FY20 – A strong year for operating efficiencies and profitability YoY Performance Highlights Business and Operations Update Optimal product mix, favorable outcomes of cost improvement programs Particulars FY20 FY19 Change and revenues from new products led to a 390-basis point improvement in the O
Slide 24: Q1FY21 - Highest Ever Quarterly EBITDA
Q1FY21 - Operating leverage delivering highest ever EBITDA in a quarter with 24% EBITDA margins Revenues Operating EBITDA Reported EBITDA PAT ₹ 3,530m ₹ 1,007m ₹ 863m ₹ 423m Q1’21 Q1’21 Q1’21 Q1’21 Q1’20 Q4’20 Q1’20 Q4’20 Q1’20 Q4’20 Q1’20 Q4’20 3,345 3,089 787 724 663 605 265 178 YoY% QoQ% YoY% QoQ
Slide 25: Strong All-Round Performance Despite Covid-19 Disruption
In spite of a 3-week Covid-19 disruption, Solara demonstrated strong all-round performance YoY and QoQ Performance Business and Operations Update Year on Year Comparison Particulars Q1 '21 Q1 '20 Change Business Revenue 3,530 3,345 6% Regulated markets represents ~76% of our quarterly revenues. Gr
Slide 26: Focus on Operating Leverage, Working Capital, and Cashflows
Focus on operating leverage, working capital, and cashflows resulting into better ratios Statement of Assets and Liabilities Key Highlights Net Debt/EBITDA Net Debt/Equity *ROCE% Source of Funds 19.0 Particulars Rs Mn Mar’19 Mar’20 Jun’20 16.8 % 2.2 0.8 0.8 Shareholders' funds 9,559 10,859 11,294 2.
Slide 27: Strong Momentum Continues After One-Off Q4'20
Strong momentum continues after a “one-off” Q4'20 performance EBITDA (₹ Million) Profit After Tax (₹ Million) Basic EPS (₹/share) 16.0 15.7 1000 0.5 900 863 0.45 423 820 413 11.2 800 0.4 10.2 10.3 701 705 700 656 663 0.35 9.0 605 289 600 0.3 262 265 494 23% 24% 6.8 500 465 0.25 221 20% 20% 20% 18% 1
Slide 28: Targeting Over 25% YoY Growth in FY21
Targeting over 25% YoY Growth in FY21 with significant expansion in EBITDA Revenues EBITDA EBITDA Margins FY19 ₹ 13,991 FY19 ₹ 2,316 FY19 17% FY20 ₹ 13,493 FY20 ₹ 2,793 FY20 21% FY21E 30-35% YOY FY21E 25-30% YoY FY21E High Teens % 28
Slide 29: Solara — The Road Ahead
Fess Pharma Sciences WA \\ \ Solara — The Road \ \Y\ Ahead...
Slide 30: Growth Strategy Along Five Levers
The Growth Strategy Is Along Five Levers, Complimenting And Amplifying Each Other … Strong foundation… ...Leading To Accelerating Growth 01 CUSTOMER CENTRICITY 05 NEW PRODUCTS/MARKETS 04 Solara has strong customer In a short span of 2 years Solara has relationships lasting many years. We established
Slide 31: Key Focus Areas For FY21
Key focus areas for the year FY 21 GROWTH & SUSTAINING NEW GROWTH LEVERS THE EXISTING BUSINESS NEW PRODUCTS & CRAMS • Transitioning to a strategic relationship with customers • Expand share of New Product launches in the past years to based on high advocacy and supply assurance driven by new markets
Slide 32: Well Poised To Significantly Accelerate Growth and Value Creation
Based On A Strong Foundation, Solara Is Well Poised To Significantly Accelerate Growth and Value Creation… Deep and diverse capabilities across the spectrum of manufacturing and R&D Strong market presence across the world with sales in 75+ countries Growing product portfolio with 40+ active products
Slide 33: Thank You
THANK YOU REGISTERED OFFICE 201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703. Tel.: +91 22 2789 2924 Fax No. +91 22 2789 2942 Email: investors@solara.co.in Website: www.solara.co.in CIN: U24230MH2017PLC291636 CORPORATE OFFICE 3rd & 4th Floor, Batra Centre, No.28, Sardar Patel Road, Guindy, Ch