Gni Group Ltd. · TSE:2160
Gni — Q1 2023 Earnings Presentation
27 slides from Gni's earnings presentation, May 18, 2023
Slide 1: GNI Group Ltd. FY2023 Q1 Financial Results
We Bring New Hope to Patients GNI Group Ltd. FY2023 Q1 Financial Results Corporate Presentation May 18, 2023 We Bring New Hope to Patients. Ying Luo (罗楹),PhD President and Chief Executive Officer Kanichiro Suzuki, PhD Chief Financial Officer Securities Code: 2160
Slide 2: Forward-looking Statements
We Bring New Hope to Patients Forward-looking Statements This presentation contains statements concerning the current plans, expectations and strategies of GNI Group Ltd. (GNI Group). Any statements contained herein that pertain to future operating performance and that are not historic facts are for
Slide 3: Contents
We Bring New Hope to Patients Contents Q1 Business Highlights Business Models & Strategies Q1 Financial Highlights Supplementary Materials © 2023 GNI Group Ltd. All rights reserved. 3
Slide 4: Q1 2023 Business Highlights (1/3)
We Bring New Hope to Patients Q1 2023 Business Highlights (1/3) Stable performance overall, but higher expenses pushed down consolidated profits. Annual forecast remains unchanged ✓ BC and BAB continue to be profitable ✓ Healthy cash flow and liquidity Factors that pushed down profits: ✓ Higher expe
Slide 5: Q1 2023 Business Highlights (2/3)
We Bring New Hope to Patients Q1 2023 Business Highlights (2/3) R&D Making Steady Progress BC Cullgen ✓ F351 subject enrollment in ✓ TRK degrader clinical trial Ph III clinical trial passed approved by HGRAC mid-point CBIO ✓ F573 Ph II clinical trial commenced ✓ F351 NASH Ph IIa trial outline disclo
Slide 6: Q1 2023 Business Highlights (3/3)
We Bring New Hope to Patients Q1 2023 Business Highlights (3/3) Strategic Initiatives towards Business Expansion ✓ Transactions with CBIO on track Pharmaceutical ✓ Cullgen’s successful funding led by an AstraZeneca-CICC fund Segment ✓ Multiple pre-IND studies are on-going in COPD and cancers ✓ OsDer
Slide 7: Business Models & Strategies
We Bring New Hope to Patients Q1 Business Highlights Business Models & Strategies Q1 Financial Highlights Supplementary Materials © 2023 GNI Group Ltd. All rights reserved. 7
Slide 8: What is GNI?
We Bring New Hope to Patients What is GNI? Balanced drug discovery and profitability Unique global biopharmaceutical company Innovative and efficient global platform R&D in the US and China + Efficient clinical development in China + Commercialization in the US, China and Japan Great growth potentia
Slide 9: BC's Development Pipeline
We Bring New Hope to Patients BC's Development Pipeline Beijing Continent pharmaceutical co. ltd Target Product Indication Preclinical Phase I Phase II Phase III NDA Marketed Countries Idiopathic Pulmonary Fibrosis (IPF) China Fibrosis-associated Dermatomyositis Interstitial Lung China ETUARY® disea
Slide 10: CBIO's Development Pipeline
We Bring New Hope to Patients CBIO's Development Pipeline Target Product Indication Preclinical Phase I Phase II Phase III NDA Marketed Countries Diseases Fibrosis Liver F351 Hepatic fibrosis resulting from NASH US © 2023 GNI Group Ltd. All rights reserved. 10
Slide 11: Cullgen's Development Pipeline
We Bring New Hope to Patients Cullgen's Development Pipeline Target Target Area Indication preclinical Phase I Phase II Phase III NDA Marketed Countries Breast, pancreatic, lung cancer, malignant Cell cycle (a) N/A melanoma, novel immunotherapeutics Cell cycle (b) Breast and ovarian cancer N/A Epige
Slide 12: Q1 Financial Highlights
We Bring New Hope to Patients Q1 Business Highlights Business Models & Strategies Q1 Financial Highlights Supplementary Materials © 2023 GNI Group Ltd. All rights reserved. 12
Slide 13: 2023Q1 Financial Highlights (1/2)
We Bring New Hope to Patients 2023Q1 Financial Highlights (1/2) Solid Topline Growth in Core Businesses Revenue Historical Q1 Financial Overview (In Million yen) Profit Items 4,500 900 Revenue YoY 800 273 m 4,000 JPY 4,206 m ↑ 700 6.9% 3,500 600 3,000 Operating Profit 500 2,500 -81 m 400 JPY 397 m ↓
Slide 14: 2023Q1 Financial Highlights (2/2)
We Bring New Hope to Patients 2023Q1 Financial Highlights (2/2) A closer look at the expense items Revenue Revenue and Main Expense Items (in Million yen) Expense Items 4,500 3,000 4,000 2,500 3,500 3,000 2,000 2,500 1,500 2,000 1,500 1,000 1,000 500 500 - - 2019Q1 2020Q1 2021Q1 2022Q1 2023Q1 Income
Slide 15: FY2023Q1 Consolidated P/L Summary
We Bring New Hope to Patients FY2023Q1 Consolidated P/L Summary (In Million yen) Ratio Ratio FY22 Q1 FY23 Q1 YoY (vs Revenue) (vs Revenue) Revenue 3,933 100.0% 4,206 100.0% 6.9% Gross profit 3,384 86.0% 3,632 86.4% 7.3% SG&A 2,458 62.5% 2,646 62.9% 7.6% R&D 468 11.9% 635 15.1% 35.7% Operating profit
Slide 16: YoY Change in Profit Attributable to Parent's Owners
We Bring New Hope to Patients YoY Change in Profit Attributable to Parent’s Owners Increase in SG&A and R&D as well as devaluation of CBIO due to dividend distribution pushed down the profit (in Million yen) © 2023 GNI Group Ltd. All rights reserved. 16
Slide 17: Consolidated Revenue vs SG&A / R&D Expenses
We Bring New Hope to Patients Consolidated Revenue vs SG&A / R&D Expenses (In Million yen) Revenue SG&A SG&A to Revenue (RHS) (%) 20,000 160 140 15,000 120 100 10,000 80 60 5,000 40 20 0 0 FY12/14 FY12/15 FY12/16 FY12/17 FY12/18 FY12/19 FY12/20 FY12/21 FY12/22 (In Million yen) (%) Revenue R&D R&D to
Slide 18: Segment Results
We Bring New Hope to Patients Segment Results Pharmaceutical (In Million yen, %) FY19 1Q FY20 1Q FY21 1Q FY22 1Q FY23 1Q Revenue 1,092 1,693 3,409 3,401 3,606 Operating profit 37 285 600 223 149 Operating profit margin 3.4% 16.8% 17.6% 6.6% 4.1% (In Million yen, %) Medical Device FY19 1Q FY20 1Q FY2
Slide 19: Supplementary Materials
We Bring New Hope to Patients Q1 Business Highlights Business Models & Strategies Q1 Financial Highlights Supplementary Materials © 2023 GNI Group Ltd. All rights reserved. 19
Slide 20: Explanation of Terms
We Bring New Hope to Patients Explanation of Terms Terminology Description BAB Berkeley Advanced Biomaterials LLC BC Beijing Continent Pharmaceuticals Co., Ltd Cullgen Cullgen Inc. and Cullgen (Shanghai), Inc. CBIO Catalyst Biosciences, Inc. IND Investigational New Drug NMPA National Medical Product
Slide 21: Exchange Rates
We Bring New Hope to Patients Exchange Rates (in JPY) B/S P/L Date US$ RMB US$ RMB FY2014 120.55 19.35 90.71 14.16 FY2015 120.61 18.36 113.41 14.90 FY2016 116.49 16.76 115.24 17.80 FY2017 113.00 17.29 112.39 16.64 FY2018 111.00 16.16 110.57 16.69 FY2019 109.56 15.67 109.43 15.85 2019Q1 110.99 16.47
Slide 22: Consolidated B/S Snapshot
We Bring New Hope to Patients Consolidated B/S Snapshot （In Million yen、％） FY2020 FY2021 FY2022 23Q1 20 vs 21 21 vs 22 22 vs 23 Non-current assets 10,194 12,109 16,759 17,723 18.8% 38.4% 5.8% Current assets 13,024 18,187 17,147 16,347 39.6% -5.7% -4.7% Total assets 23,219 30,296 33,906 34,070 30.5%
Slide 23: Consolidated Revenue and Net Income
We Bring New Hope to Patients Consolidated Revenue and Net Income Revenue Net Income （In Million yen ） (In Million yen) 20,000 18,000 1,500 16,000 14,000 1,000 12,000 500 10,000 8,000 0 6,000 4,000 -500 2,000 0 -1,000 © 2023 GNI Group Ltd. All rights reserved. 23
Slide 24: Revenue by Product
We Bring New Hope to Patients Revenue by Product (In Million yen) ETUARY® Biomaterials (Bone substitute) Other 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 FY12/14 FY12/15 FY12/16 FY12/17 FY12/18 FY12/19 FY12/20 FY12/21 FY12/22 © 2023 GNI Group Ltd. All rights reserved. 24
Slide 25: Revenue by Country
We Bring New Hope to Patients Revenue by Country (In Million yen) Japan China US 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 FY12/18 FY12/19 FY12/20 FY12/21 FY12/22 © 2023 GNI Group Ltd. All rights reserved. 25
Slide 26: Quarterly Revenue and Profit by Segment
We Bring New Hope to Patients Quarterly Revenue and Profit by Segment Pharmaceutical Medical Device (In Million yen) Revenue (%) (In Million yen) Revenue (%) Operating profit Operating profit 4,500 OPM(RHS) 25 OPM(RHS) 900 60 4,000 20 800 3,500 50 15 700 3,000 2,500 10 600 40 2,000 5 500 30 1,500 0
Slide 27: Contact Info: GNI Group Ltd. Investor Relations
We Bring New Hope to Patients Contact Info: GNI Group Ltd. Investor Relations infojapan@gnipharma.com : infojapan@gnipharma.com : www.gnipharma.com Securities Code: 2160