Vivimed Labs Limited · NSE:VIVIMEDLAB
Vivimed Labs — Q3 FY2018 Earnings Presentation
35 slides from Vivimed Labs's earnings presentation, February 2018
Slide 1: Vivimed Labs Ltd Investor Presentation
Vivimed Labs Ltd / Active Pharma Branded Specialty Ingredient Formulations Chemicals Investor Presentation February 2018 1 1
Slide 2: Safe Harbor
Safe Harbor / This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vivimed Labs Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 3: Consolidated Performance Highlights
Consolidated Performance Highlights / Revenue* EBITDA* Net Profit* 19.6% 19.8% 6.2% 7.4% 1258.1 246.2 85.2 66.9 900.1 178.0 FY17* 9MFY18 FY17* 9MFY18 FY17* 9MFY18 Margins% Figures in Rs. Crores, as per IndAS *Normalized for one time gain from sale to Klarsen and Clariant 3
Slide 4: Segmental Information
Segmental Information / 17.2% 12.4% 21.2% 32.4% 236.7 788.5 Revenue 748.6 Specialty Chemicals 151.5 Pharmaceuticals 9MFY17 9MFY18 9MFY17 9MFY18 EBIT Margins% Specialty Chemicals: 1. The 9MFY17 figures also include the sales from the segments which were divested to Clariant ( India) Ltd. while the 9M
Slide 5: Reducing Debt in the Company
Reducing Debt in the Company / Debt (in Rs. Crs) -212 1006 926 794 Mar-17 Sep-17 Dec-17 Vivimed has been focused towards debt reduction and reducing the cost of funds # Consolidated Figures, as per IND AS 5
Slide 6: Business on a Growth Track
Business on a Growth Track / Formulations API Specialty Chemicals • Joint Venture agreement with M/s • Orbimed Asia III Mauritius Limited has • Demand in the basic and Oxidatives Strides Shasun Ltd, to ensure full invested USD 50mn. The funds are being dyes, showing a marked increase utilization of
Slide 7: Vivimed Labs at a Glance
Vivimed Labs at a Glance / Global supplier of niche molecules and formulations across Pharmaceuticals and Specialty Chemicals Pharmaceuticals: Present across the critical components in the value chain US FDA approved world class manufacturing facilities Leveraging India based R&D for competitive adv
Slide 8: Business Divisions
Business Divisions / • Uquifa s.a. is the Spanish subsidiary of Vivimed Labs with 80 years of experience Revenue Break Up as of 9M FY2018 having US FDA approved manufacturing units in Spain (2) and Mexico (1) • Manufactures APIs for pharmaceutical and animal health industries globally API • It has o
Slide 9: Multinational Global Platform
Multinational Global Platform / Facilities Total Pharmaceuticals– API 3 Pharmaceuticals – FDF 7 Kashipur Haridwar Specialty Chemicals - Active 1 Ingredients Total Facilities 11 Sant Celoni, Spain R&D Facilities 6 Lliçà de Vall, Spain Kolkata Global Support Offices 5 Cuernavaca, Mexico Bidar Bolarum
Slide 10: Global Clientele
Global Clientele / Preferred Supplier to the leading global brands 10
Slide 11: Transnational Experienced Management Team
Transnational Experienced Management Team / Santosh Varalwar Sandeep Varalwar Saurabh SG S. Raghunandan (Managing Director) (Executive Director, FDF) (Executive Director, Strategy (Director - Operations) & Business Development) ▪ Associated with Vivimed ▪ More than 2 decades of • First generation en
Slide 12: API Business - UQUIFA
API Business - UQUIFA / API (UQUIFA) Pharma FDF Specialty Chemicals 12
Slide 13: Consistently Delivering Excellence
Consistently Delivering Excellence…. / FDA Approved Global Footprints Production Facilities Multi-product 3 multi- Relationship Western Diversified Clear verticals relationship product plant with leading Producer product in the with blue across pharma portfolio portfolio chip continents names Custom
Slide 14: Backed by API's consistency and CDMO evolution
…Backed by API’s consistency and CDMO evolution / UQUIFA by Products 4.8% API’s Consistency CDMO 30.0% • UQUIFA’s generics segment has realized material growth due to strong underlying end-market generic drug demand, price growth and new customers API 95.2% • Generics growth has also come from custo
Slide 15: Diversified Product Portfolio
Diversified Product Portfolio / Product Portfolio Main Clients UQUIFA has good volume share in the below products Bulk Generics Anti Ulcer Etofenamate Antibiotic Doxylamine Succinate Antifungal Ranitidine Antiviral Omeprazole Antihistamine Analgesic Pantoprazole Niche Generics Anti Hypertensive Quet
Slide 16: API - Growth Drivers
API- Growth Drivers / Product molecules with strong underlying demand for therapy areas: anti-ulcer, CNS and CVS • Anti-Ulcers comprise ~40% of business and the Company is focused on expanding in other therapeutic areas Favourable pricing due to competitive positioning and higher compliance reliabil
Slide 17: CDMO vertical gaining traction
CDMO vertical gaining traction / Ability to Scale-Up operations offers 05 Business volumes with competitive advantage established Clients is gaining traction 04 Better revenue stability and visibility 03 Tie-ups with innovator companies offering huge 02 potential 01 Promising product pipeline to dri
Slide 18: Industry Tailwinds
Industry Tailwinds / • High regulatory barriers, time factor and cost of validation becoming entry barriers. • Experienced players like Benefit from UQUIFA are benefitting from it High Entry Barriers ▪ Chemical skills and ability to Increasing regulatory concerns scale up can help to achieve makes U
Slide 19: Pharma FDF Business
Pharma FDF Business / Pharma FDF Specialty Chemicals 19
Slide 20: Business Overview
Business Overview / Company manufactures wide range of dosage forms which finds acceptance in regulated and pharmerging markets Key Business Segments Contract Manufacturing (CMO) Regulated Markets Pharmerging Markets • Product Type: Capsules and • Acquired US FDA approved Solid • Focused towards, me
Slide 21: Facilities Overview
Facilities Overview / Jeedimetla Hyderabad Kashipur Uttarakhand PICs/NDA/WHO-GMP • ISO 9001-2000, ISO 14001 and OHSAS 18001 approvals certifications • WHO-GMP/NAFDAC approvals Klar-sehen Jeedimetla, Hyderabad Haridwar Uttarakhand • ISO 13485 certified • ISO 9001-2000, ISO 14001 and OHSAS 18001 • CE
Slide 22: Key Strengths and Growth Drivers
Key Strengths and Growth Drivers / Strengths Growth Drivers • A dedicated team of 60 scientists working • Planning to launch formulations based on on formulation developments for USA / UQUIFA API’s in the Indian and ROW Australia / EU and India market markets • Pan India presence in Institution • De
Slide 23: Specialty Chemicals Business
Specialty Chemicals Business / Specialty Chemicals 23
Slide 24: Overview
Overview / • Manufacturing active ingredients for home care, personal care and industrial products • Product range - hair dyes, photochromic dyes, photochromic products, anti-microbials and imaging chemicals • Maintains leadership position through captive manufacturing (Bidar-Karnataka) or with othe
Slide 25: Segment Journey
Segment Journey / 2015-2017 Strategic Move • Sold a part of its home and 2010-2014 personal care business segment to Clariant (India) Ltd Customization and Diversification • Launched a new hair care • Entered new segments through 2006-2009 exclusive partnerships for product called MBB specifically f
Slide 26: Strong Customer Coverage
Strong Customer Coverage / Through Key Account Managers USA P&G, Colgate Sales & Marketing Team Direct Reach • Dedicated account managers who ensure enhanced Customer service, (KAM Approach) Customer mining & creation of new business opportunities EU P&G • Matrix structure across geographies and fun
Slide 27: Growth on Track
Growth on Track / Increasing market share from existing products New Focus Verticals Jarocol Naturals • Jarocol is a globally recognized trademark serving £ 10 billion retail market and it is growing by 5-6% year on year ▪ Cosmeceuticals: Beauty from within • Vivimed is strategically aligned with gl
Slide 28: Top Customers
Top Customers / Hair Dyes Photochromatic COSMOTEC 28
Slide 29: Vision 2020
Vision 2020 / To achieve leadership in API’s, CDMO, and FDF segments Strengthen operations across all business through continuous R&D, robust product pipeline and focus on steady growth Expand global footprints by leveraging diversified manufacturing facilities and partnership tie-ups with big pharm
Slide 30: Financial Performance
Financial Performance / API (UQUIFA) Pharma FDF Specialty Chemicals 30
Slide 31: Consolidated P&L Statement
Consolidated P&L Statement / Particulars (Rs. In Crores) Q3FY18 Q3FY17 YoY Q2FY18 QoQ 9MFY18 9MFY17 YoY REVENUE 299.6 360.0 -16.8% 282.5 6.0% 900.1 1025.2 -12.2% Cost of Material Consumed 128.2 125.4 107.4 371.0 431.6 Employee Expenses 52.3 50.1 44.4 139.5 141.6 Other Expenses 70.0 84.6 68.0 211.6 2
Slide 32: Consolidated Balance Sheet
Consolidated Balance Sheet / Particulars (Rs. Crs) Sep – 17 Mar - 17 Particulars (Rs. Crs) Sep - 17 Mar - 17 EQUITY AND LIABILITIES 2,495.8 2,065.5 ASSETS 2,495.8 2,065.5 Shareholder's Funds 1211.9 723.9 Non-current assets 1,140.0 958.3 Share Capital Fixed assets Equity Share Capital 16.4 16.2 Equit
Slide 33: Standalone P&L Statement
Standalone P&L Statement / Particulars (Rs. In Crores) Q3FY18 Q3FY17 YoY Q2FY18 QoQ 9MFY18 9MFY17 YoY REVENUE 65.9 139.5 -52.8% 61.1 7.8% 193.4 343.8 -43.7% Cost of Material Consumed 23.9 38.2 18.2 66.5 141.8 Employee Expenses 8.8 10.0 9.2 25.0 30.4 Other Expenses 13.3 18.6 13.6 43.7 59.9 Other Comp
Slide 34: Standalone Balance Sheet
Standalone Balance Sheet / Particulars (Rs. Crs) Sep – 17 Mar - 17 Particulars (Rs. Crs) Sep - 17 Mar - 17 EQUITY AND LIABILITIES 1,271.8 1,364.3 ASSETS 1,271.8 1,364.3 Shareholder's Funds 555.5 549.1 Non-current assets 603.3 575.1 Share Capital Fixed assets Equity Share Capital 16.4 16.2 Tangible A
Slide 35: For further information, please contact
/ For further information, please contact: Company : Investor Relations Advisors : Vivimed Labs Ltd. Strategic Growth Advisors Pvt. Ltd. CIN:L02411KA1988PLC009465 CIN: U74140MH2010PTC204285 Mr. Sunil Arab Mr. Rahul Agarwal / Nirali Shah Email: Sunil.Arab@vivimedlabs.com Email: rahul.agarwal@sgapl.ne