Slide 1: March 2018 Presentation
HMiKAL March 2018 Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hikal 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 securities, and
Slide 3: Company Overview
Company Overview Leading Sustainable Technology driven company serving the Crop Protection & Pharmaceutical Industries • Amongst the few Global Company to offer customized, cost effective and sustainable solutions from R&D to Commercial Manufacturing • One of very few global and only Indian Company
Slide 4: Hybrid Business Model
Hybrid Business Model 1 Pharmaceuticals • Contract & Custom Manufacturing • Generics • Human Health • Animal Health Pharmaceuticals • Strong Relationships 2 Crop Protection with Innovators, Mid size Pharma, Biotech & Crop Protection • Custom Synthesis and Generic Companies Contract Manufacturing of
Slide 5: Evolution
Evolution Crop Protection R&D Commenced operations with a plant in Mahad. Established R&D center in Pune to focus on R&D and Second Plant augment pharmaceuticals commissioned in Taloja and crop protection along with Merck, USA processes Pharmaceuticals Diversified into pharmaceuticals business by ac
Slide 6: Timeline
Timeline Year Milestones 1988 Hikal is incorporated 1991 First Manufacturing site at Mahad begins operations - Signed a long term supply agreement with Hoescht India 1995 Signed a long term manufacturing and supply agreement with Merck, U.S., for a large volume Agvet Active Ingredient 1997 Manufactu
Slide 7: Global Regulatory Compliances
Global Regulatory Compliances © Hikal Limited
Slide 8: Regulatory Milestones
Regulatory Milestones 2017 2014 5th Successful US FDA audit 2013 for Bangalore Successfully completed facility 2012 Panoli & EDQM Bangalore (European 2011 Pharma Sites Directorate for Panoli certified by the US FDA are EU Audited Quality of 2008 Panoli & Medicines) Bangalore Audit at Bangalore sites
Slide 9: Board of Directors
Board of Directors Jai Hiremath Sameer Hiremath Baba Kalyani Amit Kalyani Dr. Wolfgang Welter Chairman & MD President & Joint MD Dr. Axel Kleemann Sugandha Hiremath Prakash Mehta Kannan Unni Shivkumar Kheny Note: Mr. Ranjit Shahani has been appointed as Additional Director, subject to the approval o
Slide 10: Management Team
Management Team Jai Hiremath Sameer Hiremath Chairman & MD President & Joint MD Anish Swadi Dr. Sudhir Nambiar Manoj Mehrotra Kumar Inamdar Sham Wahalekar Kumaar Priyaranjan Strategy Research & Pharmaceuticals Crop Protection Finance HR Technology Strategy © Hikal Limited
Slide 11: Scientific Advisory Board
Scientific Advisory Board He holds a D.Sc. from the University of Marseilles, France; Ph.D. In Organic Chemistry from Pune University - National Chemical Laboratory; and a Ph.D. from Michigan State University and Ohio State University USA He is a National Research Professor, Eli Lilly Chair, School
Slide 12: Focused Strategy
Focused Strategy To be a leading reliable & high quality sustainable CDMO player globally Vision Aggressive Growth • Aggressive growth in Pharmaceuticals , Animal Health & Crop Protection • Support NCE & Gx Molecules Serving a large range of Customers Strategy Relationships Develop Own Portfolio • D
Slide 13: Value Chain
Value Chain Expertise in Custom Synthesis and Contract Research with capabilities scaling up from Gram to Kilo and Ton level of Production Lead molecule Launch identified Expiry On patent Off patent Discovery research growing mature Off patent Pre launch Discovery Development Full scale Manufacturin
Slide 14: Contract Development & Manufacturing
Contract Development & Manufacturing Hikal’s Business Model is to provide Services and Support across the Value Chain Early Pre- Launch Lifecycle develop Phase I Phase II Phase III development +4 years Extension ment Physical Product Development Varying degrees of ongoing improvements Varying degree
Slide 15: Hikal – Locations
Hikal – Locations Pharmaceuticals Crop Protection Mahad Bangalore Research & Development Pune Taloja Panoli Panoli © Hikal Limited
Slide 16: Manufacturing Capabilities
Manufacturing Capabilities Pune R&D Center in Pune becomes operational 2009 Bangalore & Panoli First new API plant commissioned at 2003 Bangalore. Multi-purpose pharma intermediate plant commissioned at Panoli Bangalore Acquired R&D and manufacturing site; enters the Pharmaceutical Business 2001 Pan
Slide 17: Pharmaceuticals
Pharmaceuticals Overview • Contract Development & Custom Manufacturing (CDMO) projects in Intermediates and APIs • World’s largest supplier of Gabapentin, API for Neuropathic use • Developing own Generic Portfolio • Strong Customer Relationships with Large Global Generic & Innovator Cos. R&D, Contra
Slide 18: Pharmaceuticals – Facility Overview
Pharmaceuticals – Facility Overview Jigani, Bangalore • Products : API’s & Bulk Drug Intermediates • Accreditations: USFDA, KFDA, TGA, PMDA (Japan) & ISO 9001, ISO 14001, OHSAS 18001 • Offers scale up capabilities and can provide validation and launch quantities under cGMP conditions • Audited frequ
Slide 19: Existing Contracts
Existing Contracts European Innovator • Long-term contract manufacturing agreement with a European innovator client to exclusively manufacture molecules commercially gaining Client momentum • Molecules are performing well in the market & volumes have increased substantially • These products are expe
Slide 20: Future Strategy
Future Strategy New Relationships Existing Contracts • Added New innovator • Start with a specific and biotech customers product and expand for early stage molecules horizontally for contract Existing development • European Innovator Contracts • Projects in various stages • USA based Food of clinica
Slide 21: Crop Protection
Crop Protection Overview • Custom Synthesis and Contract manufacturing of Agrochemicals, Intermediates and Specialty Chemicals • World’s largest supplier of Thiabendazole (TBZ) • On Patent Molecule Manufacturer • Strong Relationships with Global Leading Agrochemical Companies • Strong Japanese Prese
Slide 22: Crop Protection – Facility Overview
Crop Protection – Facility Overview Taloja, MH • Products: Crop Protection AIs & Intermediates • Accreditations : ISO 9001, ISO 14001, OHSAS 18001 & ISO 17025 (GLP) • Manufactures Fungicides, Insecticides and Intermediates • The site manufactures on patent active ingredients for innovator companies
Slide 23: Key Relationships
Key Relationships Product Successfully The product is On-Patent Thiabendazole for completed the lab used on grapes, New Japanese trials of an potatoes, Generation Fully Innovator Intermediate tobacco and Product commercialized in Final stages to vegetables. 2013 and volumes manufacture pilot The wid
Slide 24: Future Strategy
Future Strategy Diversifying Products & Clients Proprietary Products • Several projects have • Started been completed on manufacturing & development and selling our own pilot plant level Diversifying products developed Products & • Clients - Japanese, by our R&D such as Clients European and mid- Qui
Slide 25: Research & Development Update
Research & Development Update Research Molecules in various stages of Phase II & III - Building a pipeline for future commercial supplies Investments in R&D R&D – Benefits Accrued As % to Sales R&D (Rs. mn) 5% 5% • Developed a new API using an enzymatic process 350 which is both cost-effective and e
Slide 26: Our R & D Efforts
Our R & D Efforts • Several early stage projects in pipeline majority of these are from innovator clients in Japan & Europe • Completed piloting and validation of two on-patent herbicides for Japanese clients and an intermediate herbicide for an on-patent European innovator company • Commercialized
Slide 27: R&D – Facility Overview
R&D – Facility Overview PUNE, MH • Provides process research of APIs and intermediates involving multi-step synthesis ▪ Successful track record in developing non-infringing processes and scaling up from lab to kilo to commercialization • Supports clients with: ▪ Route Scouting ▪ Contract Research &
Slide 28: Research & Development Expertise
Research & Development Expertise Facilities ensures seamless scale up from Lab to Commercialization Bangalore Activities R&D Pune Mahad Panoli Taloja Manufacturing Drug Discovery Support Analytical method Development ✓ ✓ Process Research ✓ Process Development ✓ ✓ ✓ Process Improvement ✓ ✓ ✓ ✓ Kilogr
Slide 29: Intellectual Capital
Intellectual Capital We are creating a Sustainable Culture with the help of our team of Experienced Scientists and Specialists Qualification Location Taloja Bangalore Graduate 19% Markting B.Sc. , 6% 14% Pune R & T 1% 12% Others CBD Diploma 18% 6% 9% No. of Employees (as on 31st March’2017) : 1,319
Slide 30: Animal Health – A Natural Progression
Animal Health – A Natural Progression Flexible Existing Chemical Manufacturing Commercial Development Facilities Products Animal US Based Several Japanese Health Client Other Client API Molecules Exclusively contract Completed the kilo lab trials of Completed the pilot trials of Products are a mix o
Slide 31: Key Strengths
Key Strengths Hybrid Business Model New Experienced Management Team Regulatory Compliances Strong Research & Development Established Relations with Clients Ever Growing Product Portfolio © Hikal Limited
Slide 32: Growth Drivers
Growth Drivers Uniquely positioned to become an integral part of Pharmaceutical and Crop Protection Supply Chain Blocks Built Growth Drivers ▪ Asset Creation ▪ Expansion of Product Portfolio ▪ Relationships ▪ Increase in Volumes ▪ Research & Development ▪ Margin Enhancement © Hikal Limited
Slide 33: Financials
Financials
Slide 34: Operational Highlights
Operational Highlights We expect growth in both our divisions with increased volumes from our existing products which provides sustainability to Revenues Rs. Million Standalone Revenues Standalone EBITDA +10% 10,139 1,974 1,884 1,910 1,883 1,841 9,257 1,790 1,809 +14% 8,719 8,292 6,942 1,326 6,604 1
Slide 35: Operational Highlights
Operational Highlights Higher EBITDA Margin on account of Higher Margin Products, Quality Conscious Customers and Efficient Operations Rs. Million Pharmaceuticals Revenue Crop Protection Revenue 6,052 4,087 5,691 +16% 5,375 +11% 3,538 3,565 3,344 4,754 4,477 2,888 3,570 3,716 2,465 3,210 2,021 2,759
Slide 36: Capital Expenditure
Capital Expenditure Major Asset Creation gives us an ability to scale-up operations rapidly by making small incremental investments Rs. Million Cashflow from Operations Capital Expenditure 1,857 1,774 1,635 1,546 1,410 1,367 1,256 1,177 1,132 1,029 1,023 757 701 645 613 519 521 529 457 338 FY08 FY09
Slide 37: Standalone Profit & Loss – Quarterly & Nine Months Ended
Standalone Profit & Loss – Quarterly & Nine Months Ended Rs. Million Q3 FY18 Q3 FY17 Y-o-Y 9M FY18 9M FY17 Y-o-Y Net Sales 3,506 2,555 37% 9,096 7,193 26% Expenditure 2,838 2,072 7,393 5,802 EBITDA 669 483 38% 1,703 1,391 22% Margin 19.1% 18.9% 18.7% 19.3% Other Income 9 5 28 23 Depreciation 215 171
Slide 38: Standalone Profit & Loss - Annual
Standalone Profit & Loss - Annual Rs. Million FY17 FY16 Y-o-Y Net Sales 10,139 9,257 10% Expenditure 8,165 7,447 EBITDA 1,974 1,809 9% Margin 19.5% 19.5% Other Income 34 18 Depreciation 691 673 Finance Costs 488 622 PBT 830 533 56% Tax 162 120 Net Profit 668 413 62% Margin 6.6% 4.5% © Hikal Limited
Slide 39: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Million) Sept 17 Liabilities (Rs. Million) Sept 17 Total Non Current Assets 8,139 Shareholders Fund 6,280 Fixed Assets 7,254 Share Capital 164 Tangible Assets 6,427 Intangible Assets 6 Other Equity 6,116 Intangible Assets Under Development 18 Total Non Current Li
Slide 40: Annual Dividend Payout
Annual Dividend Payout Dividend Payout 26% 26% 21% 19% 14% 24% 24% 18% including DDT 8.13 7.77 7.32 6.58 5.39 4.92 5.03 3.07 1.60 1.20 1.20 1.20 0.90 1.00 1.00 0.50 FY10 FY11 FY12 FY13 FY14* FY15 FY16 FY17 EPS DPS Declared an Interim Dividend of Re. 0.70 per equity share (35% of Face Value) * - Incl
Slide 41: Contact Us
Contact Us Company : Investor Relations Advisors : Hikal Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24200MH1988PTC048028 CIN: U74140MH2010PTC204285 Mr. Sham V. Wahalekar Ms. Payal Dave / Mr. Jigar Kavaiya +91-9819916314 / +91-9920602034 sham_wahalekar@hikal.com payal.dave@sgapl.net / jigar.ka
Slide 42: HiKAL
HiKAL