WuXi AppTec Co., Ltd. Class A · SSE:603259
WuXi AppTec Co., Ltd. Class A — FY2022 Earnings Presentation
34 slides from WuXi AppTec Co., Ltd. Class A's earnings presentation, Mar 21, 2023
Slide 1: WuXi AppTec 2022 Annual Results
WuXi AppTec 2022 Annual Results March 21, 2023 1 603259.SH / 2359.HK
Slide 2: Forward-Looking Statements and 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
01 Results Overview 02 Business Highlights 03 Financial Performance 04 Growth Outlook Notes: 3 All financials disclosed in this presentation are prepared based on International Financial Reporting Standards (or “IFRSs”). The currency is RMB.
Slide 4: 1. Results Overview
1. Results Overview 4
Slide 5: Strong Revenue & Profit Growth in 2022
Strong Revenue & Profit Growth in 2022 Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion +71.8% +83.2% 39.4 9.4 22.9 5.1 2021 2022 2021 2022 Net Profit Net Profit After Deducting Non-Recurring Items RMB billion RMB billion +72.9% +103.3% 8.8 8.3 5.1 4.1 2021 2022 2021 2022 5 Note: The non
Slide 6: Continue Strong Growth on Back of CRDMO/CTDMO Business Model
Continue Strong Growth on Back of CRDMO/CTDMO Business Model Follow the Science / Technology – Follow the Customer – Follow the Molecule Revenue Adjusted Non-IFRS Net Profit RMB billion RMB billion Adjusted non-IFRS NPM 23.9% 9.4 39.4 22.4% 22.9 5.1 22.0% 16.5 3.6 12.9 18.0% 17.6% 2.3 9.6 1.7 2018 2
Slide 7: 2022 Business Highlights
2022 Business Highlights “Long-Tail” Strategy Global Footprint 1,400+ New Customers 32 Global Sites & Branch Offices 5,950+ Active Customers 44,361 Total employees Loyal Customer Base 41,118 Scientists & Technicians 100% Retention of Our Top 10 Customers Small Molecule CRDMO DDSU 2022 Pipeline 973 N
Slide 8: Our Platform & Business Model Continued to Perform Well
Our Platform & Business Model Continued to Perform Well Strong, Loyal & Execute Long-Tail Strategy Increase Customer Expanding Customer & Increase Support to Large Conversion to Sustain Base Pharma Growth Revenue composition Revenue composition Revenue composition Existing clients Top 20 Global Phar
Slide 9: Strong Revenue Growth from Customers Across All the Regions
Strong Revenue Growth from Customers Across All the Regions China Europe 7.53bn, +30% 4.43bn, +19% Revenue contribution: 19% Revenue contribution: 11% US 25.88bn, +113% Revenue contribution: 66% Japan, Korea & Others 1.51bn, +23% Revenue contribution: 4% 9
Slide 10: Talent Development and Operating Efficiency Improvement to Support Growth
Talent Development and Operating Efficiency Improvement to Support Growth Steady Growth of Output per Capita*, Resulting from Continuously Improved Operating Efficiency 44,361 2,281 RMB MM per capita Total Employees ending Overseas 0.89 December 31 2022 Employees 0.63 0.66 0.59 0.53 0.54 36,678 4,44
Slide 11: Strong commitment to environmental protection and ESG
Strong commitment to environmental protection and ESG Sustainability Management ESG Leading Position in the Global ESG Rating Systems and Technologies Green Chemistry Technology Platforms • Biocatalysis • Flow Chemistry • Direct Isolation Consecutive “AA” ratings Awarded “Low Risk”, ranked Top 2% of
Slide 12: 2. Business Highlights
2. Business Highlights Z ls Ban. =|
Slide 13: WuXi Chemistry: Integrated CRDMO Business Model Drives Revenue to Double in 2022
WuXi Chemistry: Integrated CRDMO Business Model Drives Revenue to Double in 2022 Development and Financial Performance Drug Discovery (R) Manufacturing (D&M) Capacity Expansion Revenue growth of 104.8% YoY to Revenue of discovery chemistry Revenue of D&M service grew Began operations in Chan
Slide 14: WuXi Chemistry: Growing CRDMO Pipeline
WuXi Chemistry: Growing CRDMO Pipeline driven by “Follow the Molecule + Win the Molecule” Strategies 396,773 compounds 1 “R” 2022 Win the Molecules 5,590 compounds “R+” 2 in Total 973 936 1,941 Preclinical & Phase I 33 293 Phase II 3 57 Phase III 1 50 Commercial 14 Notes: 1. 396,773 individually syn
Slide 15: TIDES: Unique CRDMO Platform Continues Rapid Growth
TIDES: Unique CRDMO Platform Continues Rapid Growth +158% YOY 2022 Revenue 2.04bn Growing Capabilities and Capacities • End-to-end platform supporting multiple complex conjugates: Oligo-Peptide, Oligo-Toxin, PDC, Peptide-PMO, etc. • Continuous innovations to improve synthesis efficiency and sustaina
Slide 16: WuXi Chemistry: Global Footprint and Capacity Expansion
WuXi Chemistry: Global Footprint and Capacity Expansion China Shanghai Waigaoqiao Shanghai Zhangjiang Tianjin Wuhan, Hubei Chengdu, Sichuan Qidong, Jiangsu R D M R R R R R Shanghai Jinshan Changzhou, Jiangsu Changshu, Jiangsu Taixing, Jiangsu Wuxi city, Jiangsu D M D M M M D M United States Switzerl
Slide 17: WuXi Testing: Strong Growth in Lab Testing Drives Revenue and Profit Growth
WuXi Testing: Strong Growth in Lab Testing Drives Revenue and Profit Growth Financial Performance Lab Testing Services Clinical CRO & SMO Revenue growth of 26.4% Revenue from lab testing Revenue of clinical CRO and SMO maintained #1 YoY to 5.72bn services grew 36.1% YoY to SMO grew 6.4% YoY
Slide 18: WuXi Testing: Strengthen Synergies across Platform
WuXi Testing: Strengthen Synergies across Platform, One-stop Services drive Business Growth Follow Customers with High-Standard Services • Provide customers with high-quality services, realize "one report for global 1 Leverage Preclinical Opportunities submission", and enable customers to save time,
Slide 19: WuXi Biology: Demand for Broad Biology Services Drives Growth
WuXi Biology: Demand for our Broad Biology Services Drives Growth, with Strong Contribution from New Modalities Related Services Financial Performance Discovery Biology New Modalities DNA Encoded Library Revenue growth of 24.7% One of the largest discovery biology Continue to build new biology
Slide 20: Biology Capability Building and Business Growth in New Modalities
WuXi Biology Capability Building and Business Growth in New Modalities +90% YOY 22.5% of total revenue in 2022 (14.6% in 2021) In-vitro/in-vivo Biology Research Service for New Modalities • PROTAC® / Molecular Glue / Target Protein Degradation • Nucleic acid based modality (Oligo / RNA / ASO) • Conj
Slide 21: WuXi ATU: CTDMO Business Model Drives Growth
WuXi ATU: CTDMO Business Model Drives Growth Financial Performance Project Pipeline Business Opportunities Revenue grew 27.4% to 1.31bn; We focused on improving our Signed a tech transfer agreement to Testing grew 36%, Development integrated CTDMO enabling manufacture commercial CAR-T product
Slide 22: WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform
WuXi ATU: Growing Pipeline on Our Globally Integrated CTDMO Platform Testing Cell Therapies Gene Therapies CAR-T | TIL | Stem Cells AAV | LENTI | TESSA | OV US | EU | CN 36 in US Provided globally 14 in CN 50 Preclinical & Phase I integrated CTDMO services to Cell & Gene 7 in US Therapy product 3 in
Slide 23: WuXi DDSU: Business Continues Evolving in 2022
WuXi DDSU: Business Continues Evolving in 2022 to Better Provide Innovative Drug Discovery Services for Customers Financial Performance Project Number Innovative R&D Business Evolvement Revenue declined 22.5% During the Reporting Period, our Among the 172 projects that INDs DDSU’s revenue de
Slide 24: WuXi DDSU Value Driver: Long-term Sustainable Royalty Incomes to Come
WuXi DDSU Value Driver: Long-term Sustainable Royalty Incomes to Come 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cumulative IND Submissions - 3 18 28 55 85 118 144 172 66.4 60.0 54.0 44.2 33.5 28.2 21.8 # of Commercialized Drugs 15.2 10.5 6.4 2.4 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031
Slide 25: 3. Financial Performance
3. Financial Performance Pinte
Slide 26: Financial Performance
Financial Performance Revenue Adjusted Non-IFRS Gross Profit Adjusted non-IFRS GPM RMB MM RMB MM 38.7% 39,355 15,228 38.0% 22,902 42.2% 39.8% 40.0% 40.3% 16,535 8,704 12,872 6,670 9,614 5,155 7,765 3,277 3,830 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Net Profit Attributable to Own
Slide 27: Segment Revenue
Segment Revenue RMB MM WuXi Chemistry WuXi Testing +26.4% +104.8% 28,850 5,719 4,525 14,087 2021 2022 2021 2022 WuXi Biology WuXi ATU WuXi DDSU +27.4% -22.5% +24.7% 1,308 1,251 2,475 1,026 1,985 970 2021 2022 2021 2022 2021 2022 27 Note: If the sum of the data above is inconsistent with the total, i
Slide 28: Segment Non-IFRS Gross Profit
Segment Non-IFRS Gross Profit RMB MM WuXi Chemistry WuXi Testing +106.6% +37.3% 41.2% 36.7% 33.8% 40.8% 11,882 2,101 1,530 5,751 2021 2022 2021 2022 WuXi Biology WuXi ATU WuXi DDSU +22.5% -48.7% 40.9% 2021 2022 45.6% 41.7% 11 30.2% 1.1% -77 571 1,013 827 293 Unfavorable -5.9% 2021 2022 2021 2022 28
Slide 29: Revenue and Adjusted Non-IFRS Gross Profit at Constant Exchange Rate
Revenue and Adjusted Non-IFRS Gross Profit at Constant Exchange Rate (CER) 2022 ex. 2021 (RMB Million) 2022 2021 YoY% YoY% @CER Hedge @CER ex. Hedge Revenue 39,355 22,902 71.8% 38,790 22,070 75.8% Adjusted Non-IFRS Gross Profit 15,228 8,704 75.0% 14,754 7,872 87.4% Adjusted Non-IFRS Gross Profit Mar
Slide 30: Adjusted Non-IFRS Net Profit
Adjusted Non-IFRS Net Profit RMB Million 2022 2021 Net Profit Attributable to the owners of the Company 8,814 5,097 Add: Share-based compensation expenses 684 540 Issuance expenses of Convertible Bonds 2 3 +83.2% (1) Fair value (gains)/losses from derivative component of (509) 1,001 Convertible Bond
Slide 31: Capital Expenditure and Operating Cash Flow
Capital Expenditure and Operating Cash Flow Operating cash flow grew 133.6% in 2022 Capital Expenditure of 2022-full year was RMB 9.97 billion Capital Expenditure Operating Cash Flow Free cash flow positive in 2022 10,230 9,966 RMB MM 6,936 4,379 3,828 3,031 2,532 2,529 2,249 1,796 1,363 1,526
Slide 32: 4. Growth Outlook
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Slide 33: 2023 Outlook
2023 Outlook 1 We expect revenue growth of 5-7% in 2023 on top of an exceptionally strong year of 2022 • Excluding Covid-19 commercial revenues, WuXi Chemistry expects to grow 36-38% • TIDES (New Modality business) expects to grow ~2x of WuXi Chemistry • Other business (WuXi Testing, WuXi Biology, W
Slide 34: We are Well Positioned to Continue Grow in Good Times and Challenging Times
We are Well Positioned to Continue Grow in Good Times and Challenging Times Unchanged growing global demand for new medicines & innovative drugs 01 • Science & technology continue to make new discoveries & advancements • Innovators and entrepreneurs continue to emerge • Mankind’s pursuit of health &