Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Q4 FY22 Earnings Presentation
32 slides from Jb Chemicals & Pharmaceuticals's earnings presentation, May 27, 2022
Slide 1: Company Presentation cover letter to NSE
“=n GOOD PEOPLE for GOOD HEALTH May 27, 2022 National Stock Exchange of India Limited Exchange Plaza, 5'" Floor, Plot No. C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai — 400051. Stock Symbol: JBCHEPHARM Dear Sir, Sub: Company Presentation Enclosed is Company’s presentation on financial resu
Slide 2: Q4 & FY22 Financial Results and Business Discussion
Q4 & FY22 FINANCIAL RESULTS AND BUSINESS DISCUSSION May 27, 2022
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Corporate Snapshot
Corporate Snapshot Years of operations with Pillar brands ranked in Top 300 45+ consistent track record across multiple businesses 5 IPM brands, contributing over 70% of domestic formulations revenues^ Global manufacturer of Regulated and semi-regulated 40+ markets of presence, through direct operat
Slide 5: World Class Manufacturing Facilities
World Class Manufacturing Facilities Seven state-of-the-art manufacturing facilities in Western India Over 40 global regulatory accreditations US FDA EU – GMP HEALTH – Canada SAHPRA – South Africa MHRA – UK TGA – Australia MOH – Russia Producing a wide array of dosage forms 4
Slide 6: Q4 / FY22: Financial Performance & Highlights – CEO's Message
Q4 / FY22: Financial CEO’s Message Performance “Our strong performance and sales momentum continues in the fourth & Highlights quarter, with several businesses outperforming. This allows us to close FY22 on a positive note, despite a challenging external environment. Domestic business maintains its
Slide 7: Q4 / FY22: Financial Performance & Highlights
Q4 / FY22: Financial Performance & Highlights
Slide 8: Financial Overview – Q4 & FY22: Revenue
Financial Overview – Q4 & FY22: Revenue Overall JBCPL | FY22 Revenue (INR): 2,424 Cr | YoY Gr% (FY22): 19% | YoY Gr% (Q4): 18% Revenues (INR cr) 2,424 19% 2,043 Revenue momentum continued in the fourth quarter, clocking strong double-digit growth • Sales growth for Q4 FY22 was 18% 18% 625 FY
Slide 9: Domestic Business highlights
Domestic Business highlights
Slide 10: Strong double-digit and market-beating growth in Q4 and FY22
Strong double-digit and market-beating growth in Q4 and FY22 despite market slowdown Domestic Formulations | FY22 Revenue (INR): 1,173 Cr | YoY Gr% (FY22): 32% | YoY Gr% (Q4): 30% JBCPL remains the fastest growing company among the top 30 IPM companies in Q4 FY22 and MAT Mar’22 Revenues (INR c
Slide 11: Growth in Domestic business pivoted around 5 key themes
Growth in Domestic business pivoted around 5 key themes 1 2 3 4 5 Re-Aligned Increasing Acceleration Acquisition-led Go-To-Market Making contribution from through New Growth, via strong model driving Big Brands Bigger Chronic Launches brand franchises productivity Therapies 10
Slide 12: 1. Re-Aligned Go-To-Market model driving productivity
1. Re-Aligned Go-To-Market model driving productivity Fastest growing in Top 30 IPM companies, in Q4 and FY22 Steady improvement in PCPM# Leadership position Market-Beating growth* in the covered markets Monthly revenue per MR (INR Lakhs) 29% vs IPM growth of 18% 38% + market share in 5 molecule cat
Slide 13: 2. Increasing contribution from Chronic Therapies
2. Increasing contribution from Chronic Therapies Contribution from Chronic vs Acute Therapies Chronic Therapy (%)* Acute Therapy (%)* • Consistently increasing contribution from Chronic Therapies 57% 54% 54% 50% 60% • FY22 ended with 50% of Domestic sales from Chronic segment* - aided by launches i
Slide 14: 3. Making Big Brands Bigger
3. Making Big Brands Bigger Rank in Rank in MS% in Value JBCPL CVM IPM CVM CVM (INR Cr.) Gr% Gr% RANTAC #45 #2 41% 289 19% 6% 5 major brands feature in the Top 300 IPM Brands* CILACAR #52 #1 51% 273 19% 12% These brands command a dominant share in their respective molecule segments METROG
Slide 15: 4. Accelerating growth through New Launches
4. Accelerating growth through New Launches New Introductions - % to Domestic Sales FY21 FY22 4.0% 5 17* 1.4% new launches new launches FY21 FY22 Some of the new introductions of FY22 Nintabid (Respiratory) DAPACOSE – M (Diabetes) JBTOR (Diuretics/CKD/CHF) Metrogyl-O (Antibiotic) 14 * excluding line
Slide 16: 5. Acquisition-led growth, via strong brand franchises
5. Acquisition-led growth, via strong brand franchises Judicious deployment of Capital and Free Cash flow in value-accretive brands and franchises SANZYME AZMARDA Sizeable market opportunity in Heart-Failure (HF), Acquisition of Sanzyme portfolio marks our foray ARNI# is the highest growth category,
Slide 17: Sanzyme: synergies with JBCPL's business lines and GTM model
Sanzyme: offers synergies with JBCPL’s current business lines and India Go-To-Market model Area Comments • Among the highest growing segments in Indian pharmaceutical Market Opportunity market and gastro-enterology segment Sanzyme integration on • Still a nascent opportunity in India, with room to
Slide 18: Azmarda: Sacubitril + Valsartan has grown at a healthy rate
Azmarda: Sacubitril + Valsartan has grown at a healthy rate in last few years driven by their superior profile, especially in HFrEF* Combined SV market HF has a lot of untapped potential, allowing room for Sales performance^ (INR Cr) growing significantly 43% p.a. 451 351 Good scope to leverage our
Slide 19: Domestic Business - on track towards achieving strategic priorities
Domestic Business - on track towards achieving strategic priorities WHEN WE STARTED CURRENT POSITION MID TO LONG-TERM OBJECTIVES IPM Position Ranked #32 in IPM Ranking 25th In IPM Ranked in IPM Top 20 companies Contribution from ~45% of Domestic sales 50% of Domestic sales ~60% of Domestic sales Chr
Slide 20: International Business highlights
International Business highlights
Slide 21: International business witnessed a strong revival in Q4
International business witnessed a strong revival in Q4 and delivered double-digit growth in FY’22 International Business | FY22 Revenue (INR): 1,236 Cr | YoY Gr% (FY22): 10% | YoY Gr% (Q4): 9% International business witnessed a strong revival in Q4, especially supported by the CMO business, a
Slide 22: International Business - on track towards achieving strategic priorities
International Business - on track towards achieving strategic priorities KEY INITIATIVES & MILESTONES One of the fastest growing companies in South Africa #15 ranked Company by Value; #11 rank by Volume (IMS)* South Africa Increased proportion of private market business as percentage to overall s
Slide 23: Leveraging leading position in Lozenges for future growth in CMO
Leveraging leading position in Lozenges for future growth in CMO Contract Manufacturing Growth Levers Top 5 manufacturer of • New Customers – 1 major Deeper penetration with existing medical/herbal lozenges with significant market opportunity global Customer added customers: explore new opportunitie
Slide 24: Financial Analysis
J.B. CHEMICALS & PHARMACEUTICALS LTD. Financial Analysis N
Slide 25: EBITDA Analysis – Q4 and FY22
EBITDA Analysis – Q4 and FY22 INR crore Q4 FY22 FY22 Revenue# 625 2424 Reported EBITDA 125 543 Non Cash ESOP Cost 24 62 Included in Employee Benefits expense Operating EBITDA 149 605 (excluding ESOP Cost) Operating EBITDA Margin 24% 25% One time consultancy/advisory 15* 29 * Pertaining to Acquisitio
Slide 26: Financial Overview Q4 & FY22: Profitability
Financial Overview Q4 & FY22: Profitability Op. EBITDA* (INR cr) Margin (%) Adjusted EBITDA 27.4% 634 Adjusted EBITDA grew by 32% during Q4 YoY and 13% during 605 26.2% 560 26.1% FY22: reported EBITDA lower due to non-cash ESOP charge and one-time costs 25.0% 23.4% 24.0% Underlying Gross Margin
Slide 27: Q4 & FY22 – Financial Performance (Consolidated)
Q4 & FY22 – Financial Performance (Consolidated) Particulars (In INR Cr.) Q4 FY22 Q4 FY21 YoY Growth FY22 FY21 YoY Growth Sales (Net) 625 528 18% 2424 2043 19% Other Operating Income Revenue from Operations 625 528 21% 2424 2043 19% Cost of Goods Sold 213 195 9% 843 701 20% Gross Profit 412 334 23%
Slide 28: Q4 & FY22 – Cash Flow Statement
Q4 & FY22 – Cash Flow Statement Particulars (In Cr.) FY22 FY21 Operating EBITDA 605 560 Working Capital Adjustments -302 -94 Working Capital increased significantly, primarily due to – Cash Generated from Operating Activities 305 457 • Investments made in the base business Tax Payments -135 -142 to
Slide 29: Consistent Revenue/EBITDA growth over the years
Consistent Revenue/EBITDA growth over the years Domestic Formulations (INR cr) Revenues (INR cr) International Business (INR cr) CAGR:19% CAGR: 11% CAGR:14% 2424 1236 1173 2043 1127 892 1775 942 954 797 1643 816 588 675 1413 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 30: Delivering profitability in a tough operating environment while investing for growth
Delivering profitability in a tough operating environment while investing for growth Particulars FY18 FY19 FY20 FY21 FY22 Gross Margin 61.9% 63.7% 64.5% 65.7% 65.2% Employee Cost/Revenues 17.8% 17.5% 18.2% 16.7% 18.1% Other Operating Expenses/Revenues 28.8% 27.5% 25.0% 21.5% 24.7% Reported EBITDA Ma
Slide 31: We continue to build a Solid Foundation and Accelerate our Growth Journey
We continue to build a Solid Foundation and Accelerate our Growth Journey BUSINESS GROWTH PRODUCTIVITY IMPROVEMENT STRONGER GOVERNANCE Therapy & Brand focused Growth objectives supported Continuous thrust on approach in line with core by robust organization improving productivity & cost strengths of
Slide 32: About J.B. Chemicals & Pharmaceuticals Limited
About J.B. Chemicals & Pharmaceuticals Limited J.B. Chemicals and Pharmaceuticals Limited (JBCPL) For further information, please contact: (BSE: 506943 | NSE: JBCHEPHARM | ISIN: INE572A01028), established in 1976, is one of the fastest growing pharmaceutical companies in India Lakshay Kataria, Chief
J. B. Chemicals & Pharmaceuticals — Q4 FY22 Earnings Presentation on 6ix