Wuxi Apptec Co., Ltd. Class A · SSE:603259
Wuxi Apptec Co., Ltd. Class A — FY2019 Earnings Presentation
37 slides from Wuxi Apptec Co., Ltd. Class A's earnings presentation, April 2020
Slide 1: WuXi AppTec 2019 Annual Results
WuXi AppTec 2019 Annual Results 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements; Use of Non-IFRS Financial Measures
Forward-Looking Statements This presentation may contain certain “forward-looking statements” which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe
Slide 3: Agenda
Agenda 01 2019 Annual Results 02 Business Highlights 03 Financial Overview 04 Business Continuity Plan Notes: All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The unit of currency is RMB. 3
Slide 4: 2019 Annual Results
mt uk i Wuki Apptec 2019 Annual Results
Slide 5: 2019 Business Highlights
2019 Business Highlights “Long-Tail” Strategy Global Footprint 1,200+ New Customers 29 Global Sites & Branch Offices 3,900+ Active Customers 17,800+ Scientists & Technicians Loyal Customer Base M&A 100% Retention for Our Acquired Pharmapace to Top 10 Customers Enhance Biometrics Services Capabilitie
Slide 6: Accelerated Growth in 2019
Accelerated Growth in 2019 Revenue Adjusted Non-IFRS Net Profit RMB MM RMB MM 12,872 9,614 2,407 7,765 1,742 6,116 1,413 995 2016 2017 2018 2019 2016 2017 2018 2019 6
Slide 7: IFRS & Adjusted Non-IFRS Measures
IFRS & Adjusted Non-IFRS Measures RMB Million 2019 2018 YoY Change Revenue 12,872 9,614 3,259 33.9% IFRS Gross Margin% 38.9% 39.3% -0.4% Non-IFRS Gross Margin% 40.6% 40.3% 0.3% IFRS Operating Profit 2,486 2,596 -111 -4.3% IFRS Operating Profit Margin% 19.3% 27.0% -7.7% Adjusted Non-IFRS Operating Pr
Slide 8: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit (1) RMB Million 2019 2018 Net Profit Attributable to the owners of the Company 1,855 2,261 RMB MM Add: Share-based compensation expenses 161 46 2,407 Listing expenses and issuance expenses of convertible bonds 4 22 Fair value gains or losses from derivative component of
Slide 9: Strong, Loyal and Expanding Customer Base
Strong, Loyal and Expanding Customer Base Top 20 Global Global “Long-tail” Customers CAGR Total Pharmas and China Customers 3,900+ Active Customers Including All of the 2016-2019 19.3% 33.5% 28.2% Top 20 Global Pharmaceutical Companies (1) 18,000 RMB MM 45% 16,000 40.4% 36.0% 40% 33.2% 32.5% 14,000
Slide 10: Increase Customer Conversion to Drive Growth
Increase Customer Conversion to Drive Growth Contract Value & Duration Customer Stickiness 8% 2019 Revenue Composition 50% China-based Lab 12% Clinical 29% Services US-based CDMO Lab Services Services 3% 2016 Revenue 53% Clinical 27% Composition China-based Lab 15% CDMO Services US-based Lab Service
Slide 11: Business Highlights
mt uk i Wuki Apptec Business Highlights
Slide 12: China-based Laboratory Services Highlights
China-based Laboratory Services Highlights Small Molecule Drug Integrated IND Revenue & Profit Discovery Package Services Success-based Services Revenue growth Provided/enabled global Combine scientific, Submitted 30 NME IND accelerated 26.6% YoY. customers with many PCC program management a
Slide 13: Anticipate the Industry Trend & Built Capabilities Early
Anticipate the Industry Trend & Built Capabilities Early PROTAC Drug Discovery Platform Enables Rising New Segment of the New Small Molecule Class PROTAC Platform Biotech Services Revenue RMB MM 500 474 400 300 249 200 137 100 50 0 2016 2017 2018 2019 Note: Picture from Arvinas website 13
Slide 14: CDMO/CMO Services Highlights
CDMO/CMO Services Highlights Revenue & Profit Follow the Molecule New Capabilities Proven Quality Revenue growth Provided services to ~1,000 Oligo & peptide cGMP pilot Jinshan facility passed Japan accelerated 39.0% YoY. projects. facility began operation and PMDA and EMA inspections. comple
Slide 15: CDMO/CMO: "Follow the Molecule" Strategy
CDMO/CMO: “Follow the Molecule” Strategy 756 Preclinical & Phase I 177 Phase II Provided Services to ~12% 40 Phase III Global New Small Molecule Drug Clinical Pipeline 21 Commercial 15
Slide 16: US-based Laboratory Services Highlights
US-based Laboratory Services Highlights Labs & Facilities Cell and Gene Revenue & Profit in US & China Therapies CDMO Medical Device Testing Revenue growth accelerated CGT: 20,000M2 cGMP Provided services to 31 Integration and 29.8% YoY. CGT services facilities in Pennsylvania, clinical stag
Slide 17: Cell and Gene Therapies CDMO
Cell and Gene Therapies CDMO Capitalizing on the Fastest Growing Sector Assisted Juventas in Provided services to 31 clinical submitting 2 IND filings for its stage projects with 23 projects in cell therapy products with the NMPA. Phase I and 8 projects in Phase II/III. China-based Established
Slide 18: Clinical Research CRO/SMO Services Highlights
Clinical Research CRO/SMO Services Highlights Revenue & Profit Capabilities & Capacities Establish Our Track-Record M&A Revenue growth accelerated SMO maintained #1 Helped a variety of new Acquired clinical CRO 81.8% YoY. Excluding the effect leadership in China, with drugs for cancers, Phar
Slide 19: Growing Clinical Research Capabilities in China and the U.S.
Growing Clinical Research Capabilities in China and the U.S. Strong Domestic Presence Supplemented by Growth Potential Internationally Clinical research services coverage in China Major offices in China Beijing San Diego Chengdu Phase I Wuhan Clinical Trial Unit Austin Shanghai WuXi Clinical Guangzh
Slide 20: Continue to Build Capabilities and Capacity Globally 2019
Continue to Build Capabilities and Capacity Globally——2019 China-based Lab Services CDMO/CMO Services Cell and Gene Therapies Clinical Research Services • Newly built Nantong R&D • STA’s new drug product • Cell and gene therapies bio- • Acquired Pharmapace, a Center began operation. manufacturing fa
Slide 21: Growing Talents for Sustaining Business Growth
Growing Talents for Sustaining Business Growth Rapid Expansion of Talent Base Employees As of Oversea 21,744 December 31, 2019 1,672 ~ 25,000 21,744 17,730 14,763 11,422 Research & CDMO1 17,872 Development 6,029 2016 2017 2018 2019 2020E Note: 2019 Key Talent Retention Rate: 94%2 1. Including small
Slide 22: Capacity in Progress
Capacity in Progress Jinshan Wuxi Tianjin Munich Minnesota Changzhou New Jersey Suzhou San Diego Philadelphia Chengdu Wuhan The Capacity of Our Sites is Expanding Shanghai k m2 1,200 1,132 1,000 943 768 800 622 600 545 400 ~1,132K m2 of Laboratories, Manufacturing 200 Facilities and Offices Worldwid
Slide 23: Financial Overview
mt uk i Wuki Apptec Financial Overview
Slide 24: Financial Performance
Financial Performance Revenue Non-IFRS Gross Profit Non-IFRS GPM RMB MM RMB MM 15,000 12,872 8,000 41.3% 42.2% 40.3% 40.6% 12,000 9,614 6,000 5,259 9,000 7,765 3,893 6,116 4,000 3,277 6,000 2,525 2,000 3,000 0 0 2016 2017 2018 2019 2016 2017 2018 2019 Net Profit Attributable to Owners of the Company
Slide 25: Segment Revenue
Segment Revenue China-based Laboratory Services CDMO / CMO Services RMB MM RMB MM 6,473 5,113 3,752 4,121 2,699 3,270 2,109 1,637 2016 2017 2018 2019 2016 2017 2018 2019 US-based Laboratory Services Clinical and Other CRO Services RMB MM RMB MM 1,563 1,063 1,135 1,204 935 585 356 206 2016 2017 2018
Slide 26: Segment Non-IFRS Gross Profit
Segment Non-IFRS Gross Profit China-based Laboratory Services CDMO / CMO Services RMB MM RMB MM 42.9% 45.2% 44.2% 45.3% 43.7% 44.2% 42.5% 41.0% 2,966 1,537 2,279 1,148 1,864 933 1,404 715 2016 2017 2018 2019 2016 2017 2018 2019 US-based Laboratory Services Clinical and Other CRO Services RMB MM RMB
Slide 27: Capital Expenditure and Total Debt
Capital Expenditure and Total Debt Capital Expenditure (1) Total Borrowings(2) (1) RMB MM RMB MM 2,572 2,532 2,249 762 1,618 1,363 300 958 1,810 489 1,318 489 135 15 120 2016 2017 2018 2019 2016 2017 2018 2019 Short-term Long-term Note: 1.Capital expenditure includes purchase of property, plant and
Slide 28: 2019 Profit Distribution Plan
2019 Profit Distribution Plan A cash dividend of RMB3.37 (inclusive of tax) for every 10 Shares (representing an aggregate amount of RMB556,429,640.95 (inclusive of tax) based on the total issued Shares of the Company as of the date of this announcement). 4 new shares for every 10 existing Shares of
Slide 29: Received MSCI ESG Rating of "A"
Received MSCI ESG Rating of “A” Responsibility for Regulators Responsibility for Healthcare Industry Comply with laws and regulations Build an open-access platform with the Quality of our services meet global Shareholders & most comprehensive capabilities and regulatory standards Investors technolog
Slide 30: Expanding the Healthcare Ecosystem Through Investments
Expanding the Healthcare Ecosystem Through Investments Investments by Sector 80+ Portfolio Companies and Funds Covering 6 14.4% Sectors 3.6% 34.2% 10.1% 27.4% IRR as of December 31, 2019 15.2% 22.5% ~4.8B RMB Balances as of December 31, 2019 Representing 16.4% of Our Total Asset Healthcare Services
Slide 31: Business Continuity Plan
mt uk i Wuki Apptec Business Continuity Plan
Slide 32: Business Continuity Plan
Business Continuity Plan January February March • Established rapid • Transferred • March 24, over 96% response teams customers’ high of total employees in across all unites. priority projects to China returned to • Implemented BCP to Shanghai, Tianjin & work. ensure the safety of Nantong sites. our
Slide 33: Business Continuity Plan - Win Back 2020
Business Continuity Plan - Win Back 2020 Implementing BCP to Mitigate COVID-19 Impact and Win Back 2020 The COVID-19 outbreak hit our Wuhan site We implemented our Business Continuity Plan very early on to particularly hard, and to a lesser degree, our clinical minimize interruptions to operations a
Slide 34: Enabling Global Customers Working@Home
Enabling Global Customers Working@Home Global Enabling Platform Flexible Business Model Enabling Customers to Work@Home • Ensure the health and 29 global sites and offices Minimize the COVID-19 safety of our employees and impact on customers’ project distributed in 3 continents facilities. deliver
Slide 35: We Believe
We Believe The fundamentals of our business remain very strong and we are proactively working with our 1 customers to drive their R&D projects forward in this challenging time. Our global footprint and timely implementation of BCP allow us to better serve our customers, 2 even enabling customers wor
Slide 36: Thank You!
Thank You! G l o b a l P l a t f o r m . O n e V i s i o n . 36 www.wuxiapptec.com
Slide 37: Integrated End-to-End Service Capabilities
Integrated End-to-End Service Capabilities “Follow the Project, Follow the Molecule” Along the Entire Drug Development Cycle New / Existing customers New / Existing customers New / Existing customers New / Existing customers New projects New projects New projects New projects Discovery Preclinical C