Ibnsina Pharma · EGX:ISPH
Ibnsina Pharma — FY2023 Earnings Presentation
46 slides from Ibnsina Pharma's earnings presentation, 2024
Slide 1: Investor Review Q4 2023
— ZK @Q4, 2023 ibnsina pharma Investor Review
Slide 2: Outline: Board Presentation
Outline: Board Presentation Business Performance YTD, Challenges & Key Initiatives Market Top Line OPEX Income Working Capital Non Core Dynamics Performance Optimization Statement & Net Debt Business Revenue & Gross Profit EBITDA vs OPEX Breakdown & Analysis of CCC, Debt & Financial Non-core Busines
Slide 3: Pharma Market Dynamics
Pharma Market Dynamics Macros and pharma market status 3
Slide 4: Pharma Market: Total Pharma Market Growth
Market Value Pharma Market: Total Pharma Market Growth FY 22 vs FY 23 Exchange Rate pressure EDA to increase Prices resulting in a double-digit growth in market value 30% 61.9 57.2 45.7 42.5 43.2 41.5 39.4 36.1 36.7 36.7 32.7 32.7 33.6 29.6 29.8 27.7 Q1, 2020 Q2, 2020 Q3, 2020 Q4, 2020 Q1, 2021 Q2,
Slide 5: Pharma Market: Growth Drivers
Units Sold ASP Pharma Market: Growth Drivers FY 22 vs FY 23 FY 22 vs FY 23 Growth leveraged by “Average Selling Price” growth compensating decline in “Units sold” -4% 34% 8 0 1 0 0 1,023 948 958 949 960 927 938 905 900 7 0 877 893 887 847 836 8 0 824 809 65 61 6 0 55 6 0 51 5 0 46 44 41 41 4 0 39 4
Slide 6: ISP Strategy 2023-2024: FY 2023 Highlights
ISP Strategy 2023-2024: FY, 2023 Highlights Key highlights on 9 months’ results Sustainable Growth Differentiation Working Collaterals Capital (Held for Sale) Enhancement Ibnsina Pharma’s FY, 2023 Strategic Pillars Highlights Investment OPEX Diversification Optimization Digitalization 6
Slide 7: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perform
Slide 8: Increase in Market Share, Market Leadership
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results 4% in Market Share Increase in Units & Value over Last Year in all segments Market Leadership Position 24% Market Share – FY 8
Slide 9: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 10: Exceptional Growth in Revenues
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Exceptional Growth in Revenues Double Market Growth (30%) 53% Growth in Revenue (35bn) FY 2023 Revenue 12bn Higher than 22 10
Slide 11: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 12: Higher Growth in GP vs Revenue (53%)
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Higher Growth in GP vs Revenue (53%) 56% Importation Margins Record Growth in Gross Profit Non-Pharma Distribution Margins (2.5bn) 12
Slide 13: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 14: Exponential growth in EBITDA
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Exponential growth in EBITDA Operational Optimization & Digitalization Reflected on Op- 100% exp % of Sales (3.2% 23 vs 4% 22) Growth in EBITDA EBITDA Doubled with 1.32bn FY, 23 vs (1.3bn) 0.66bn FY, 22 14
Slide 15: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 16: Healthy Growth in NPM
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Healthy Growth in NPM Despite dramatic rise of interest rate by 119% compared to Jan 22 24% Growth in Net Profit Plus, inflation impact on OPEX (214mn) 16
Slide 17: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 18: Decrease in Debt Ratio from 29.4% to 25.6%
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Decrease in Debt Ratio from 29.4% to 25.6% (YoY) 75% of total assets are free financed 25.6% Debt Ratio Further supporting bottom line (13% â vs 22) figures 18
Slide 19: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 20: Maintaining Healthy Levels of CCC
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Maintaining Healthy Levels of CCC Despite exceptional revenue growth by 53% -0.8 Drop by 4.5 days vs FY, 2022 Days of Cash Conversion (vs 3.7) 20
Slide 21: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 22: Successful ERP roll-out
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Successful ERP roll-out Ongoing stabilization phase Integrating business cycles to 100% further optimizing operations Roll-out 22
Slide 23: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 24: Diversifying portfolio with new business lines
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023 results Diversifying portfolio with new business lines Higher margins Great synergy achieved further empower core business 3 Non-Core business Performance 24
Slide 25: Q4 2023 Highlights on 2023 results
ISP Strategy 2023-2024: Q4, 2023 Highlights Key highlights on 2023’s results 53% 56% 100% 24% 24% Growth in Growth in Growth in Market Share – Growth in Gross Profit EBITDA Net Profit FY Revenue (2.5bn) (1.3bn) (214mn) (35bn) 25.6% -0.8 3 Debt Ratio Days of cash 100% Non-Core business Roll-out Perfo
Slide 26: ISP Strategy: Sustainable Growth
ISPH Strategy 2023-2024: ISP Strategy Sustainable Growth Sustainable Growth Differentiation Working Collaterals Capital (Held for Sale) Enhancement Ibnsina Pharma’s Sustainable Strategic Pillars Growth Investment OPEX Diversification Optimization Digitalization 26
Slide 27: Market Share: Total Market Value Performance
Market Structure – FY, 2023 Market Share: Total Market Value Performance Pharmacies Hospitals Wholesale Ibnsina Pharma continues its successful run; retaining leadership position 50% 33% 17% among competitors despite challenges. Market Share Market Share ISPH vs Market ISPH vs Market FY, 2022 vs FY,
Slide 28: Revenue Analysis: Revenue Growth
Revenue Analysis: Revenue Growth Ibnsina Pharma achieves 58% QoQ revenue growth rate in 2023 YoY Growth: 53% 1 2 ,0 0 2021 Revenue: 22.3bn FY, 2022 Revenue: 22.8bn FY, 2023 Revenue: 34.7bn 2 3 5 % 58% 1 0 , 0 64% 10,444 9,322 1 8 5 % 58% 8 ,0 0 28% 7,988 8% 20% 6,995 1 3 5 % 17% -2% 6,594 22% 12% 6
Slide 29: Revenue Analysis: Growth Across All Business Units
QoQ Growth Revenue Analysis: Growth Across All Business Units ISP Segments Addressing customer segments individually, modifying internal capacity to cater segment’s needs & potential 58% 12 10 10.44 9.32 Targeted QoQ Growth 8 Pharmacies 7.99 49% 6.99 6 6.59 6.13 Wholesale 5.79 5.68 5.51 5.45 4.94 5.
Slide 30: Revenue Analysis: Subsidiaries & Non-core Business
Other Revenue Growth Revenue Analysis: Subsidiaries & Non-core Business FY, 22 vs FY, 23 Diversifying portfolio for sustainability and higher growth potential 126% QoQ Growth: 110% Other Revenues Transporting 76 Warehousing Data Services 70 67 Over-printing Marketing 11 17 26 Digital 43 36 35 31 34
Slide 31: Market Anatomy: Segments Performance
Market Anatomy: Segments Performance Ibnsina Pharma growth is in line with market dynamics, growing wholesale segment 75% in 2023 Market Anatomy – Segments’ Contribution ISP Segment Contribution to Total Revenue 2020 – 2023 FY 2020 – 2023 FY - (Market Data) 2023 29% 2022 2023 28% 2021 33% 2022 26% 2
Slide 32: Gross Profit: Gross Profit Analysis
Gross Profit Growth Gross Profit: Gross Profit Analysis FY 22 vs FY 23 Optimize gross profit due to success in managing CTG, GDT & Supplier Deals 57% Gross Profit Optimization (FY) Cash Discount Given (Millions) Gross Profit Value (Millions) 1 ,2 0 0 0.16% 3 .2 0 % 1 ,0 0 3.02% 3 .0 % 2.86% FY 2023
Slide 33: ISP Strategy: OPEX Optimization
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s OPEX Strategic Pillars Optimization Working Diversification Capital & Debt Optimization Digitalization 33
Slide 34: Productivity: Optimization
Productivity: Optimization Optimizing key operational metrics, reflecting positively on EBITDA 851 71 7,678 Optimization of Vehicles | Sites | FTE’s Revenue Per Vehicle 6 0 Revenue Per Site 4 5 % Revenue Per FTE 37% 6 4 0 % 4.42 4 0 % 4 5 5 0 % 44% 5 0 40% 4 0 4 5 % 3 5 % 0.23 3 5 % 0.45 5 4 0 % 3 0
Slide 35: OPEX Optimization
OPEX Optimization: Optimization New lowest OPEX to Sales recorded in Q4 2023 with a steady decline OPEX vs EBITDA (% of Sales - QOQ) 4.5% 4.3% 4.0% 4.1% 4.0% 4.0% 3.7% 3.5% 3.6% 3.4% 3.3% 3.1% 3.2% 2.9% 2.7% 2.6% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 OPEX to Sales EBITDA to
Slide 36: ISP Strategy: Income Statement
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Ibnsina Pharma’s Income Strategic Pillars Statement Working Diversification Capital & Debt Optimization Digitalization 36
Slide 37: Income Statement: 22 vs 23
Income Statement: 22 vs 23 ISP Consolidated 24% growth in net profit margin despite rising financial cost ISP Standalone AIM Consolidated Gross Sales (Growth: 53%) Gross Profit (Growth: 56%) OPEX (Growth: 24%) EBITDA (Growth: 100%) 1,098 2,515 (3.2%) 1,328 35,004 (7.4%) 888 (3.9%) 142 (4.0%) 23 1,61
Slide 38: ISP Strategy: Working Capital & Debt Optimization
ISPH Strategy 2023-2024: ISP Strategy Working Capital & Net Debt Optimization Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Working Ibnsina Pharma’s Strategic Pillars Capital & Debt Optimization Working Diversification Capital & Debt Optimization Digitalization 38
Slide 39: Working Capital Optimization: Exceptional Relative Performance
Working Capital Optimization: Exceptional Relative Performance Maintaining a healthy CCC further supports spontaneous financing and free cash flow. CCC CCC CCC CCC 1.8 Days 3.9 Days 3.7 Days -0.8 Days 37 39 36 29 128 131 123 114 93 90 96 84 FY - 2020 FY - 2021 FY- 2022 FY - 2023 DSO DIO DPO 39
Slide 40: Net Debt Optimization: Net debt maintained at same level despite growth
Net Debt Optimization: Net debt maintained at same level despite growth Net Finance Bearing Debt to Equity levels despite recent Equity multiple adjustments & Revenue growth Net Debt (mn) 984 1,803 3,241 3,613 Equity (mn) 1,365 1,453 1,259 1,449 Net Debt : EBITDA 1.59 2.27 4.88 2.72 Debt Ratio 13.6%
Slide 41: ISP Strategy: Investment Diversification
ISPH Strategy 2023-2024: ISP Strategy Investment Diversification Sustainable Growth Differentiation Collaterals OPEX (Held for Sale) Optimization Non-Core Ibnsina Pharma’s Strategic Pillars Business (Diversification) Working Investment Capital & Debt Diversification Optimization Digitalization 41
Slide 42: Non-pharma Distribution Review: Business Overview and Results
Non-pharma Distribution Review: Business Overview and Results Non-pharma Distribution Business Model – Higher Margin Business Line with Great Potential Non- Business Unit Pharma Distribution Segments Cosmetics Agencies E- Modern Para- Channels Wholesale commerce Trade Pharmacies pharma Pricing Worki
Slide 43: Non-pharma Distribution Review: Top Line Performance
Non-pharma Distribution Review: Top Line Performance Non-pharma Distribution Business Model – Higher Margin Business Line with Great Potential 2023 Highlights Supplier Portfolio 2023 FY Sales Revenue Analysis – 21 vs 22 vs 23 Expanding Current Supplier Portfolio 1.16bn 1 4 0 0 1 8 0 % YoY Growth 1 6
Slide 44: Medical Promotion Review: Business Overview
Total MP Performance S2, 22 + FY, 23 Medical Promotion Review: Business Overview MP Revenues MP Net Profit NPM High synergy diversification model with great impact on ISP’s growth performance 57.6mn 30mn 52% Medical Promotion Outsourcing Overview Medical Promotions Performance Benefits Global Market
Slide 45: Ramp Logistics Review: Service Outline & Top Line Overview
Ramp Logistics Review: Service Outline & Top Line Overview Multiple revenue streams and increase in customers on-board; showing potential Services Revenue Analysis P&L Key Challenges & Actions Revenue EBITDA Net Income 2 5 0 1 6 0 5 0 % Warehousing Capacity 140 4 5 % 48% 1 4 0 2 1 0 Warehousing Ware
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