Jubilant Pharmova Limited · NSE:JUBLPHARMA

Jubilant Pharmova — Jubilant Life Sciences — Investor Presentation (November 2019)

54 slides from Jubilant Pharmova's investor presentation, November 2019

  1. Slide 1: Jubilant Life Sciences Limited Investor Presentation November 2019

    Jubilant Life Sciences Limited Investor Presentation November 2019

  2. Slide 2: Disclaimer

    Disclaimer Important Disclaimer This presentation (the “Presentation”, or the “document”) has been prepared by Jubilant Life Sciences Limited (the “Company”) for the recipient for the purpose of providing information on the Company. The contents of this Presentation are confidential and strictly for

  3. Slide 3: Jubilant Life Sciences Overview

    Jubilant Life Sciences Overview Pharmaceuticals Life Science Ingredients DDDS1 Specialty Pharmaceuticals Drug Discovery  Radiopharma Specialty Intermediates Services (Jubilant  Allergy Therapy Products Biosys & Jubilant Chemsys) CDMO  CMO of Sterile Injectables and Non Sterile Products Nutritiona

  4. Slide 4: Pharmaceuticals Segment

    wW jusiaAnt Pharmaceuticals Segment LIFESCIENCES

  5. Slide 5: Evolution of Jubilant Pharma

    Evolution of Jubilant Pharma Revenue Contribution(1) JLL acquired Acquired a majority stake in Acquired Draxis Pharma SGX-listed high Completed FY19 API business – Cadista Holdings Inc. Inc. in Canada yield bond acquisition of US$761m Nanjangud, (generics pharmaceutical (manufacturer of sterile offe

  6. Slide 6: Radiopharmaceuticals Business

    Radiopharmaceuticals Business Market Size of Industry in North America 3.5  Radiopharmaceuticals Industry in North America is US$2.4bn, expected to grow at CAGR of 6.2% to reach 2.9 3.0 3.2 2.6 2.7 2.2 2.3 2.4 US$3.5bn by 2023 1.9 2.0 Industry (US$bn) Overview (1)  Oncology and cardiology diagnosi

  7. Slide 7: Radiopharmacy Business

    Radiopharmacy Business  # 2 commercial radiopharmacy network(1) in the US, operated under the Jubilant Radiopharmacy brand  Facilities include three cyclotrons  Multi-year agreements with GPOs in place Over 50 radiopharmacies spread across 22 states 750+ employees c.3 mn+ doses delivered annually

  8. Slide 8: Allergy Therapy Business

    Allergy Therapy Business Allergen Immunotherapy (AIT) Market Size  Global AIT market stands at US$1.8bn and is expected to grow at CAGR of 8.9% to reach 2.8 2.6 US$2.8bn by 2022 2.3 0.5 2.1 0.4 1.8 2.0 1.7 0.4  Major growth drivers include the increased prevalence of allergic diseases, reduced tim

  9. Slide 9: Contract Manufacturing Business – Sterile Injectables and Non-Sterile Products

    Contract Manufacturing Business – Sterile Injectables and Non-Sterile Products Global Pharmaceutical CMO Industry Size 125 134 100 109 117 5 5 7  Injectable market stands at US$5.4bn and is expected to outpace the industry (ex API) by growing at a 92 5 6 7 12 12 79 85 4 5 6 11 73 6 4 11 11 Industry

  10. Slide 10: API Business

    API Business Global Market Size : Synthetic API 149 123 131 129  Global Synthetic API market is US$115bn in 2018 and is expected to grow at a 115 Industry 46 62 51 53 CAGR of 6.7% from 2018 to 2022F to reach US$149bn(1) 48 (US$bn) Overview  53% of outsourced API market is generics(1) 67 72 78 83 8

  11. Slide 11: Solid Dosage Formulations Business

    Solid Dosage Formulations Business Global Generics Pharmaceuticals Industry Size by Unbranded Generic US Patent Expiry for Small Molecules Sales(1)(3)  Global generics pharmaceutical industry stands at US$111bn and is expected to grow at CAGR of 5.2% to reach US$136bn US$ 72.5 bn 136 by 2023 117 12

  12. Slide 12: Life Science Ingredients Segment

    Life Science Ingredients Segment

  13. Slide 13: Specialty Intermediates & Nutritional Products

    Specialty Intermediates & Nutritional Products Global Market Size ($ Mn) : Speciality Chemicals Global Market Size (KT): Vitamin B3  Global specialty chemicals market is USD 1.1 billion in 2018 and is expected to grow at 5.4% to reach USD 1.2 Industry billion in 2022. Overview  Global nutrition ma

  14. Slide 14: Life Science Chemicals

    Life Science Chemicals Global Market Size (KT): Acetic Global Market Size (KT): Ethyl Anhydride Acetate  Global Acetic Anhydride market is 585 KT in 2018 and is expected to Industry grow at 4.2% to reach 662KT in 2022 Overview  Global Ethyl Acetate market is 2046 KT in 2018 and is expected to grow

  15. Slide 15: Jubilant Life Sciences – Key Strengths & Strategies

    Jubilant Life Sciences – Key Strengths & Strategies

  16. Slide 16: Jubilant Life Sciences Key Strengths

    Jubilant Life Sciences Key Strengths 1 Strong Leadership in Key Products and Markets 2 Global Competitive Edge Due to Low Cost and Vertical Integration 3 De-risked Business Model With Diverse Sources of Revenue 4 Strong Pipeline of Products with Deep R&D Capabilities 5 High-Quality, World –Class, Lo

  17. Slide 17: Leading Market Positions with High Barriers to Entry for Specialty Pharmaceuticals

    Leading Market Positions Across Business Lines, with High Barriers To 1 Entry For Specialty Pharmaceuticals Highlights Entry Barriers  #3 radiopharmaceuticals manufacturer in the US (1)  Extensive regulatory and licensing requirements  #2 commercial radiopharmacy network in the US (1) Specialty P

  18. Slide 18: Global Competitive Edge Due to Low Cost and Vertical Integration

    Global Competitive Edge Due to Low Cost and Vertical 2 Integration Vertical integration across the value chain enables cost competitive advantage resulting in higher margins Integrated Operations… Life Sciences Ingredients Animal & Speciality Radiopharmacies Ingredients Vitamins Human  Provides dir

  19. Slide 19: De-risked Business Model With Diverse Sources of Revenue

    3 De-risked Business Model With Diverse Sources of Revenue  Presence in niche Specialty businesses that have high barriers to entry  Diverse end-use industry segmentation in Life Science Ingredients with focus on Pharmaceutical and Agrochemical industries  Presence across geographic locations ena

  20. Slide 20: Strong Pipeline of Products With Deep R&D Capabilities

    4 Strong Pipeline of Products With Deep R&D Capabilities  Strong R&D capabilities demonstrated by complex and niche product filings including 505(b)(2) in radiopharma  Strong R&D support with a dedicated workforce of more than 500 R&D professionals. Over 852 patents filed till FY19  Strong pipeli

  21. Slide 21: High-Quality, World-Class, Low Cost Manufacturing Footprint

    5 High-Quality, World-Class, Low Cost Manufacturing Footprint Spokane, Washington, USA Roorkee, Uttarakhand  Contract manufacturing of Sterile  Generics manufacturing injectable and Allergy therapy Gajraula, Uttar Pradesh  Largest integrated facility of Specialty Intermediates and Samlaya, Gujara

  22. Slide 22: Experienced Management Team with High Standards of Corporate Governance

    Experienced Management team with high standards of corporate 6 governance Shyam S Bhartia Hari S Bhartia Chairman Co-Chairman & Managing Director 39 industry years in pharma, specialty 33 industry years in pharma, specialty chemicals, foods, oil and gas, aerospace and IT chemicals, foods, oil and ga

  23. Slide 23: Demonstrated Financial Track Record with Strong Revenue Growth

    Demonstrated Financial Track Record with Strong Revenue Growth and 7 Attractive Profitability Profile Revenue from Operations1 Total Revenue EBITDA Split1 Reported EBITDA2  Revenue increased at a CAGR of 12% over FY15-19 and EBITDA 5,826 5,893 5,861 7,518 9,111 4,448 732 1,291 1,370 1,558 1,775 925

  24. Slide 24: Growth Strategies and Plans

    Growth Strategies and Plans Continue to strengthen leadership positions in key business segments 1  Radiopharma: Achieve market leadership by leveraging leadership in existing products and broad distribution network along with expansion of our product portfolio through launch of niche and different

  25. Slide 25: Growth Strategies and Plans

    Growth Strategies and Plans 3 Develop a diverse product and service portfolio through differentiated and complex offerings  Specialty Pharmaceuticals Focus: Develop differentiated products in the radiopharmaceuticals and specialty injectables segments catering to the North American market  CDMO Fo

  26. Slide 26: Appendix

    Appendix W JUBILANT LIFESCIENCES

  27. Slide 27: Income Statement – Q4 & 12M'FY19

    Income Statement – Q4 & 12M’FY19 Particulars Q4 FY 18 Q4 FY19 YoY Growth 12M FY18 12M FY19 YoY Growth (Rs Crs) (%) (Rs Crs) (%) Total Revenue from Operations (Net of Excise) 2252 2386 6% 7518 9111 21% Pharmaceuticals 1233 1399 13% 3995 5324 33% Life Science Ingredients 968 912 (6%) 3328 3545 7% Othe

  28. Slide 28: Adjusted EBITDA – Q4'FY19 and FY'19

    Adjusted EBITDA – Q4’FY19 and FY’19 % Change % Change S. No. Q4'FY18 Q4'FY19 YoY FY18 FY19 YoY 1 Reported EBITDA 481 351 (27%) 1,558 1,775 14% 2 One-off Adjustments 18 103 485% 90 157 74% 3 Adjusted EBITDA 498 455 (9%) 1,649 1,932 17% 4 Reported EBITDA Margin 21.3% 14.7% 20.7% 19.5% 5 Adjusted EBITD

  29. Slide 29: Corporate Actions

    Corporate Actions  In March 2019, Company’s wholly-owned subsidiary Jubilant Pharma Limited, Singapore, issued USD 200 Mn rated unsecured bonds of USD200 million. The Notes bearing interest at 6.00% per annum will Bonds mature in March 2024  In March 2019, the Company fully redeemed the outstandin

  30. Slide 30: Q2 & H1'FY20 Results Analysis

    Q2 & H1’FY20 Results Analysis

  31. Slide 31: Chairmen's Message

    Chairmen’s Message JUBILANT Q2’FY20 PERFORMANCE Revenue flat at Rs. 2,266 Crore vs. Q2’FY19; EBITDA at Rs 481 Crore up 6% YoY and 8% QoQ PAT at Rs 249 Crore up 19% YoY and 35% QoQ with EPS of Rs. 15.7 per share vs. Rs 13.5 per share last year Commenting on the Company’s performance, Mr. Shyam S Bhar

  32. Slide 32: Corporate Announcement

    Corporate Announcement Ww J 'UBIIANT ‘LIFESCIENCES

  33. Slide 33: Corporate Announcement (1/2)

    Corporate Announcement (1/2) Jubilant Life Sciences Limited (JLL), an integrated global Pharmaceuticals and Life Sciences company has announced that the Committee constituted on 26th July, 2019 to consider the option of reorganizing the businesses of the company has recommended the following: i. Dem

  34. Slide 34: Corporate Announcement (2/2)

    Corporate Announcement (2/2) Structure post demerger 1. The Pharmaceutical entity will have three businesses viz.- • Pharma business through Jubilant Pharma Limited Singapore (JPL) is engaged in manufacturing and supply of Radiopharmaceuticals with a network of over 50 radio-pharmacies in the US, Al

  35. Slide 35: Rationale of Demerger

    Rationale of Demerger  Create focused, distinct and separate entities for Pharmaceuticals and LSI business undertakings leading to greater operational efficiencies with dedicated management structure.  These distinct business undertakings will enable strategic growth with optimal capital structure

  36. Slide 36: Rationale of Amalgamation

    Rationale of Amalgamation  Currently, a significant portion of the Promoters’ shareholding in Jubilant Life Sciences is held through a multi-tier structure. The proposed Amalgamations will result in a simplified structure directly identifiable with the Promoters.  The current regulatory requiremen

  37. Slide 37: Q2'FY20 Results Analysis

    Q2’FY20 Results Analysis WV J 'UBIIANT ‘LIFESCIENCES

  38. Slide 38: JLL – Q2'FY20 Financial Highlights

    JLL – Q2’FY20 Financial Highlights YoY Particulars1 Q2'FY19 Q2'FY20 Change (%)  Revenue flat at Rs 2,266 Crore vs. Q2’FY19 Revenue • Pharmaceuticals revenue at Rs 1,452 Crore, up 9% YoY, contributing 64% to revenue Pharmaceuticals2 1,332 1,452 9% Life Science Ingredients 887 753 (15%) • LSI revenue

  39. Slide 39: Q2'FY20 Adjusted Earnings

    Q2’FY20 Adjusted Earnings Consol EBITDA S. No. Particulars Q2'FY19 Q2'FY20 % Change YoY Rs Crore 1 Reported EBITDA 454 481 6% 2 One-off Adjustments 8 23 3 Adjusted EBITDA 462 504 9% 4 Reported EBITDA Margin 20.0% 21.2% 5 Adjusted EBITDA Margin 20.4% 22.2% One-off Expenses S. No. Particulars Q2'FY19

  40. Slide 40: Pharmaceuticals Segment Highlights – Q2'FY20 (1/2)

    Pharmaceuticals Segment Highlights – Q2’FY20 (1/2) Particulars1 Q2'FY19 Q2'FY20 % Change  Pharmaceuticals revenue at Rs 1,452 Crore, up 9% both YoY and QoQ Revenue 1,332 1,452 9% Specialty Pharma 712 743 4% • Healthy growth in all key revenue segments led by 20% YoY CDMO 372 411 10% growth in Gener

  41. Slide 41: Pharmaceuticals Segment Highlights – Q2'FY20 (2/2)

    Pharmaceuticals Segment Highlights – Q2’FY20 (2/2) USFDA Inspection Details CDMO1  Revenue up by 10% YoY and 19% QoQ to Rs 411 Crore Facility Last Inspection CMO Montreal, CMO May, 2018  Growth in CMO business led by higher volumes from existing customers Montreal, Radiopharma Sep, 2017  Initiati

  42. Slide 42: LSI Segment Highlights – Q2'FY20

    LSI Segment Highlights – Q2’FY20 Particulars 1 Q2'FY19 Q2'FY20 % Change  LSI revenue at Rs 753 Crore, down 15% YoY and 7% QoQ mainly due to Revenue 887 753 (15%) • Strong growth in Specialty Intermediates and Nutritional Specialty Intermediates 196 259 32% Products Nutritional Products 107 113 6% •

  43. Slide 43: Drug Discovery & Development Solutions – Q2'FY20

    Drug Discovery & Development Solutions – Q2’FY20 1 Particulars Q2'FY19 Q2'FY20 % Change  Drug Discovery & Development Solutions (DDDS) comprises Revenue 50 61 20% Drug Discovery Services 50 61 20% • Drug Discovery Services business through Jubilant Biosys Limited & Jubilant Chemsys Limited which pr

  44. Slide 44: Proprietary Drug Discovery (Jubilant Therapeutics)

    Proprietary Drug Discovery (Jubilant Therapeutics)  Jubilant Therapeutics, a subsidiary of Jubilant Life Sciences for proprietary innovation, is a capital efficient, semi-virtual biopharma with agile business model and asset specific subsidiaries for creative partnerships.  The company’s core stra

  45. Slide 45: H1'FY20 Results Analysis

    H1’FY20 Results Analysis WV J 'UBIIANT ‘LIFESCIENCES

  46. Slide 46: JLL – H1'FY20 Financial Highlights

    JLL – H1’FY20 Financial Highlights YoY Particulars1 H1'FY19 H1'FY20 Change (%)  Revenue at Rs 4,448 Crore up 2% from Rs 4,348 Crore in H1’FY19 Revenue • Pharmaceuticals revenue at Rs 2,781 Crore, up 10% YoY, contributing Pharmaceuticals2 2,519 2,781 10% Life Science Ingredients 1,734 1,559 (10%) 63

  47. Slide 47: H1'FY20 Adjusted Earnings

    H1’FY20 Adjusted Earnings Consol EBITDA S. No. Particulars H1'FY19 H1'FY20 % Change YoY Rs Crore 1 Reported EBITDA 901 925 3% 2 One-off Adjustments 13 71 3 Adjusted EBITDA 914 996 9% 4 Reported EBITDA Margin 20.7% 20.8% 5 Adjusted EBITDA Margin 21.0% 22.4% One-off Expenses S. No. Particulars H1'FY19

  48. Slide 48: Pharmaceuticals Segment Highlights – H1'FY20

    Pharmaceuticals Segment Highlights – H1’FY20 Particulars1 H1'FY19 H1'FY20 % Change Geography Wise Revenue1 Revenue 2,519 2,781 10% 2,061 2,299 Specialty Pharma 1,377 1,468 7% CDMO 649 756 16% Generics 493 557 13% 55 66 241 221 162 195 Reported EBITDA 699 716 2% Adjusted EBITDA 712 778 9% India North

  49. Slide 49: LSI Segment Highlights – H1'FY20

    LSI Segment Highlights – H1’FY20 Life Science Chemicals Segment  LSI revenue at Rs 1,559 Crore, down 10% YoY 1 Particulars H1'FY19 H1'FY20 % Change  EBITDA at Rs 213 Crore down 3% YoY with margin of 13.7% as Revenue 1,734 1,559 (10%) compared to 12.6% in H1’FY19. Adjusted EBITDA up 1% YoY to Rs Sp

  50. Slide 50: Drug Discovery & Development Solutions – H1'FY20

    Drug Discovery & Development Solutions – H1’FY20 1 Particulars H1'FY19 H1'FY20 % Change  DDDS segment revenue up 14% YoY to Rs 109 Crore led by Revenue 95 109 14% growth in Drug Discovery Services business which was driven Drug Discovery Services 95 109 14% by higher demand from Biotech companies f

  51. Slide 51: Debt Profile

    Debt Profile Particulars 31/03/19 30/06/19 30/09/19 Foreign Currency Loans ($ Mn) ($ Mn) ($ Mn) Subsidiaries 500 500 500 Total 500 500 500 Rupee Loans (Rs. Crs) (Rs. Crs) (Rs. Crs) Standalone 1,341 1,056 1,029 Subsidiaries 61 95 21 Total 1,402 1,151 1,050 Gross Debt (Rs. Crs) (Rs. Crs) (Rs. Crs) Sta

  52. Slide 52: Appendix

    Appendix Ww) JUBIANT LIFESCIENCES

  53. Slide 53: Income Statement – Q2 & H1'FY20

    Income Statement – Q2 & H1’FY20 1 Particulars Q2'FY19 Q2'FY20 YoY Growth H1'FY19 H1'FY20 YoY Growth Total Revenue from Operations 2,269 2,266 (0%) 4,348 4,448 2% Pharmaceuticals 1,332 1,452 9% 2,519 2,781 10% Life Science Ingredients 887 753 (15%) 1,734 1,559 (10%) Drug Discovery & Development Solut

  54. Slide 54: Corporate Actions

    Corporate Actions For Investors: Ravi Agrawal / Vineet Mayer Siddharth Rangnekar Jubilant Life Sciences Limited CDR India Ph: +91 120 436 1002 / 1021 Ph: +91 22 6645 1209 E-mail: ravi.agrawal@jubl.com E-mail: siddharth@cdr-india.com Vineet.mayer@jubl.com For Media: Sudhakar Safaya Gaurav Kashyap Jub

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