Imexpharm Corporation · HOSE:IMP
Imexpharm — Investor Presentation (February 2025)
28 slides from Imexpharm's investor presentation, February 2025
Slide 1: Imexpharm Corporation
IMEXPHARM CORPORATION Ho Chi Minh City February 2025
Slide 2: Agenda
Agenda Decree No. 24/2024/ND-CP (02/2024) Vietnam & Vietnam Pharmaceutical Who We Are Incentives for Market Vietnamese-origin goods 01 02 Amended Health Insurance Law Financial Highlights No. 51/2024/QH15 Vision & Strategy (11/2024) 03 04 2
Slide 3: Vietnam & Vietnam Pharmaceutical Market
01 VIETNAM & VIETNAM PHARMACEUTICAL MARKET 3 3
Slide 4: Vietnam represents one of the most attractive pharma markets in Asia
Vietnam represents one of the most attractive pharma markets in Asia Avg. forecast GDP growth, Key growth drivers Vietnam pharma 2024-2028 market outlook 2024-2028 Vietnam Strong income 6.7% growth Pharmerging (incl. 10-13% Philippines Vietnam) 6.5% Favorable demographics Indonesia 4.9% Global 6-9%
Slide 5: Golden growth period for local manufacturers
Golden growth period for local manufacturers Local production value contribution National Strategy for Vietnam’s 70% 17% 45% pharma industry development by 2030 with a vision towards 2045 issued in Oct 2023 2001-2011 2015-2021 2030 Target • 70% market value coming from local products EU-GMP & equiva
Slide 6: 2024 favorable regulatory progress
2024 favorable regulatory progress Amended Decision Decree Pharmacy Law No. 201/QĐ-TTg No. 24/2024/ND-CP No. 44/2024/QH15 (02/2024) (02/2024) (11/2024) • Upgrade 6 hospitals to Incentives for • Drug Registration procedures; international standards Vietnamese-origin goods • Investment incentives for
Slide 7: High-tech, high-value products particularly vaccines driving market growth
High-tech, high-value products particularly vaccines driving market growth Market Value Breakdown Market Value CAGR 2022-2024 10.4% p.a Local 42% Import MAT 3Q2024: 9% yoy ▲5% 58% ▲12% Retail Hospital MNC Market Volume 59% 41% Non-MNC 38% ▲12% 62% ▲19% CAGR 2022-2024 ▲7% ▲4% 1.1% p.a (Sources: 24’Q3
Slide 8: Who We Are
02 WHO WE ARE 8 8
Slide 9: Imexpharm - decades of pioneering and innovation
Imexpharm - 5 decades of pioneering and innovation 1977 1999 2006 2019 2022 Established in The 1st pharma The 1st pharma IMP2: EU-GMP IMP4: EU-GMP Dong Thap company to do company to be 3 lines in 2019, 3 lines in 2022, franchise listed on the and 1 additional 1 additional line producti
Slide 10: A leading Pharmaceutical company in Vietnam
A leading Pharmaceutical company in Vietnam ü Market leading position benefiting from favorable national policies Management team Market #1 Favorable ü Experienced in VN antibiotics market with over 10% Government policies for local pharma management with market share players combination of internat
Slide 11: IMP's products are produced at world-class facilities in Vietnam
IMP’s products are produced at world-class facilities in Vietnam IMP1: A plant focusing on IMP2: An oral IMP3: A high-tech IMP4: An injectable non-antibiotics antibiotics plant antibiotics plant antibiotics plant Standard WHO-GMP EU-GMP EU-GMP EU-GMP Annual capacity (units) 1,038 millions 92 million
Slide 12: ETC Channel: Full-fledged infrastructure with national coverage
ETC Channel: Full-fledged infrastructure with national coverage Covering 63/63 provinces • 1st leading position in both oral and injectable antibiotics • The only one with non-beta lactam in injectable form • The only one with EU-GMP BFS and lyophilized injectables production lines ~70% Leading Hosp
Slide 13: OTC channel – rapid expanding network
OTC channel – rapid expanding network Our nationwide sales network covers 63/ 63 cities in Vietnam We sell to 17,500+ mom-and-pop pharmacies in the country 1 branch and develop strong partnership with leading pharmacy chains. Hanoi 34 sales reps Northern Top 4 pharmacy chains in Vietnam are our Nghe
Slide 14: Sustainable growth fueled by strong product portfolio & outstanding R&D capability
Sustainable growth fueled by strong product portfolio & outstanding R&D capability 7.8% 98 24 new on-going launched projects SKUs in 4.3% 76% 24% 2024 4.2% 2.4% 1.8% 1.5% 1.0% 0.9% Antibiotics Cough medicine Digestive aid Analgesic and antipyretic 361 28 Anti-inflammatory Health supplement SKUS EU M
Slide 15: Top products in various dosage forms with annual sales from USD 1~4 million
Top 10 products in various dosage forms with annual sales from USD 1 ~ 4 million Biocemet Cidetus Claminat 625mg Claminat 500mg Ceftizoxim Dispersible tablet Soft gelatine capsule Film-coated tablet Powder for oral suspension Powder for injection (IMP2) (IMP1) (IMP1) (IMP1) (Cepha – IMP3) Claminat 1
Slide 16: Shareholder structure and IMP stock
Shareholder structure and IMP stock 13.17% Charter capital USD 60 mn (VND 1,540 bn) No. of outstanding shares 154 million shares Book value per share USD 0.6 (VND 14,176) 22.03% EPS USD 0.1 (VND 2,182) 64.80% Market cap USD 284 mn P/E 21.5 x P/B 3.3 x SK and related parties (KBA, Binh Minh Kim) EBIT
Slide 17: Financial Highlights
03 FINANCIAL HIGHLIGHTS 17 17
Slide 18: Double-digit growth in revenue and accelerated profitability
Double-digit growth in revenue and accelerated profitability Net revenue ▲ 11% YoY 10% 12 USD 86.5 mn Anti-biotics EU-GMP lines market share in total EBITDA ▲ 12% YoY Net 18.5% USD 20.4 mn profit 11.9% 12.6% 12.7% 13.3% margin 27.7% 20.2% 22.2% 21.7% 21.8% PBT EBITDA margin ▲ 7% YoY 4Q23 1Q24 2Q24 3
Slide 19: Consistent investments in technology and quality driving outstanding revenue growth
Consistent investments in technology and quality driving outstanding revenue growth Gross Revenue (USD mn) Net Revenue (USD mn) 5% vs. ‘20-24 CAGR % vs. CAGR 1 (*) 7% CAGR 13(*) % y 7 industr industry 28.1% 55% ETC 42% 34% 36% OTC 78.2 86.5 34% 9.5% 64.5 52% 53.7 49.7 53% 58% 62% 43% Others 10% 8% 6
Slide 20: Steadily rising profitability
Steadily rising profitability FY2024 Profit before tax FY2024 EBITDA • Competitive advantages in EU-GMP-compliant productions, high- • The product portfolio has been shifting towards high-tech high value tech high quality product portfolio and continuously optimized products including injectables an
Slide 21: IMP boosted production at its higher-value, EU-GMP factories
IMP boosted production at its higher-value, EU-GMP factories 4% Revenue by Factory Production volume Production value Factory 8% FY24 vs. FY23 FY24 vs. FY23 38% IMP1 (9%) (10%) IMP1 IMP2 28% 50% IMP2 FY24 IMP3 IMP3 (19%) 37% 37% IMP4 IMP4 133% 139% Others Others 23% 41% TOTAL (9%) 19% 13% • Low dema
Slide 22: Continued dominance in Tier 2 tenders; improvement across all levels
Continued dominance in Tier 2 tenders; improvement across all levels Market tender value IMP tender value (USD mn) (USD mn) 792.2 784.3 600.0 529.4 372.5 2023 298.0 14.3% %MS 2024 0.4% 0.3% 0.3% 0.3% 13.8% Tier 1 Tier 2 Tier 3-5 53.3 41.1 Ø Tier 1: (i) branded drugs or; (ii) produced on EU-GMP (or 2
Slide 23: Key Financial Ratios
Key Financial Ratios Ratio 2020 2021 2022 2023 2024 Note Net revenue (USD mn) 53.7 49.7 64.5 78.2 86.5 12.6% CAGR (20-24) Profit before tax (USD mn) 10.0 9.4 11.4 14.8 15.9 12.2% CAGR (20-24) EBITDA (USD mn) 12.4 11.5 14.0 18.2 20.4 13.3% CAGR (20-24) Market cap (USD mn) 147.3 203.5 157.5 155.5 283.
Slide 24: 2025 Business guidance
2025 Business guidance Completion rate No. Target (USD mn) 2024 Target 2024 Actual 2025 Target vs. target 1 Gross revenue 103.1 98.5 96% ▲ High teens • OTC 47.6 42.2 89% • ETC 51.6 54.0 105% 2 Net revenue 92.7 86.5 93% ▲ High teens 3 Profit before tax 16.6 15.8 96% ▲ High single-digit at least 4 EBI
Slide 25: Vision & Strategy
04 VISION & STRATEGY
Slide 26: Our 2030 vision is to be a SEA regional top-tier fully-integrated pharma
Our 2030 vision is to be a SEA regional top-tier fully-integrated pharma 2030 Market & Strategy “Market Creator” Data-Driven Tech. / Portfolio “First Generic” Value-Added Fully- “ Integrated Value Chain Integrated pharmaceutical” Vietnam + “First dominant Region SE & N. Asia VN FIPCO in SEA” 26
Slide 27: Strategic roadmap for IMP to transform into a top-tier player in the region
Strategic roadmap for IMP to transform into a top-tier player in the region Product Growth Antibiotics growth and TA expansion with IMP5 plan Network Operational Expansion Efficiency Unleashing growth potential to ensure capturing high growth market Sustainable profitability Focus Areas Sustainable
Slide 28: Thank You
Thank You For further discussion, please contact our IR team ir@imexpharm.com