Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q4 FY2022 Earnings Presentation
33 slides from Neuland Laboratories's earnings presentation, 2022
Slide 1: Earnings Presentation Q4 FY22
Earnings Presentation Q4 FY 22 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Contents
Table of Contents Q4 & FY-22 1 HIGHLIGHTS 2 BUSINESS OVERVIEW 3 CAPABILITIES 4 FINANCIALS 5 OUTLOOK 3
Slide 4: Q4 & FY-22 Highlights
Q4 & FY-22 HIGHLIGHTS
Slide 5: Management Speak
Management Speak SUCHETH DAVULURI “The past financial year was marked by a flat revenue, owing principally to weak GDS offtake from our customers. Given our focus on building execution excellence, we remain confident about the long-term prospects of all our businesses despite facing certain technica
Slide 6: Key Highlights FY22
Key Highlights FY22 Business Highlights Financial Highlights ❖ Growth from development projects ❖ Total income was Rs. 953.2 crore in was offset by Inventory destocking and FY22, as compared to Rs. 953.0 in lower offtake at customers’ end crore in FY21* ❖ Focus on creating execution & project ❖ EBIT
Slide 7: Key Highlights Q4 FY22
Key Highlights Q4 FY22 Business Highlights Financial Highlights ❖ In Prime segment, Mirtazapine, ❖ Total income was Rs. 256.5 crore in Labetalol & Levofloxacin performed Q4FY22, a decrease of 1.1% YoY* well. ❖ EBITDA margin decreased by 10 bps ❖ Specialty had a decent growth quarter from 15.4% to 15
Slide 8: Profit & Loss Snapshot (Standalone)
Profit & Loss Snapshot (Standalone) YoY QoQ YoY Particulars (Rs. Cr) Q4FY22 Q3FY22 Q4FY21 FY22 FY21 (%) (%) (%) Total Income 256.5 238.4 7.6% 259.3* (1.1) % 953.2 953.0* 0.0% EBITDA 39.3 34.2 15.1% 40.0 (1.7)% 144.3 162.5 (11.2)% EBITDA Margin 15.3% 14.3% 100 Bps 15.4% (10) Bps 15.1% 17.1% (200) Bps
Slide 9: Financials (Standalone)
Financials (Standalone) Revenue (Rs. Cr) 953 * 953 EBITDA (Rs. Cr) and EBITDA Margin (%) 258 257 238 180 163 16.7% 203 43 39 17.1% 160 15.3% 144 13.6% 14.3% 34 140 15.1% 28 120 100 80 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY21 FY22 60 Certain items classified as revenue in Q1 &Q3 have been reclassified as exp
Slide 10: Key Operating Metrics
Key Operating Metrics YoY Analysis Quarter on Quarter Movement 4% 3% 4% 4% 3% 5% 28% 22% 30% 27% 28% 40% 22% 22% 23% 24% 25% 20% 53% 47% 43% 45% 43% 36% FY 21 FY 22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Prime Speciality CMS Others 10
Slide 11: Business Salience (Overall Company)
Business Salience (Overall Company) PRODUCT YoY Analysis QoQ Movement 64% 54% 58% 60% 61% TOP 10 57% TOP 5 40% 39% 43% % of Total revenue 42% 38% 41% FY 21 FY 22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 CUSTOMER YoY Analysis QoQ Movement 52% 53% 54% 53% 49% 47% 36% 41% 36% 37% 41% 39% FY 21 FY 22 Q1 FY22 Q2
Slide 12: Business Salience (Prime)
Business Salience (Prime) Q1 Q2 Q4 FY-21 47% FY-22 43% Q3 53% FY22 45% 36% FY22 43% FY22 FY22 PRODUCT YoY Analysis QoQ Movement 96% 95% 97% 92% 98% 92% TOP 10 TOP 5 (of Prime revenue) 78% 74% 73% 71% 70% 67% FY 21 FY 22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 CUSTOMER YoY Analysis QoQ Movement 63% 59% 60% 6
Slide 13: Business Salience (Specialty)
Business Salience (Specialty) Q1 Q2 Q3 Q4 FY-21 22% FY-22 24% 22% FY22 23% 20% 25% FY22 FY22 FY22 YoY Analysis QoQ Movement TOP 10 PRODUCT TOP 5 83% 82% 91% 91% 89% 86% (of Specialty Revenue) 57% 60% 66% 64% 67% 61% FY 21 FY 22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 CUSTOMER YoY Analysis QoQ Movement 56% 6
Slide 14: Business Salience (CMS)
Business Salience (CMS) Q1 Q2 Q3 Q4 FY-21 28% FY-22 30% 22% FY22 27% 40% 28% FY21 FY22 FY22 PRODUCT YoY Analysis QoQ Movement TOP 10 99% 99% TOP 5 97% (of CMS revenue) 82% 85% 80% 92% 75% 71% 83% 84% 61% FY 21 FY 22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 CUSTOMER YoY Analysis QoQ Movement 99% 99% 97% 89% 8
Slide 15: Key Operating Metrics – CMS Revenue Split
Key Operating Metrics – CMS Revenue Split Rs. In Cr Commercial Development YoY Analysis Quarter on Quarter Movement 282 269 114 95 136 70 72 38 44 14 38 168 133 23 56 57 34 21 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 15
Slide 16: Number of Active CMS Projects
Number of Active CMS Projects Q4 FY22 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 14 3 7 7 8 8 47 Intermediate 7 5 2 0 8 12 34 Grand Total 21 8 9 7 16 20 81 Q4 FY21 Pre-Clinical P-1 P-2 P-3 Development Commercial Grand Total API 15 3 7 3 12 6 46 Intermediate 7 4 2 0 8 11 32 Grand
Slide 17: Business Overview
BUSINESS OVERVIEW
Slide 18: Our Journey – Key Milestones
Our Journey – Key Milestones Laying Strong Foundation Deepening Our Capabilities Increased Sustainable Growth 1984 - 2003 2004 - 2012 2013 - Today Successfully 1984 1986 1994 1997 2004 2007 2008 2009 cleared 15 USFDA Incorporated First API sale of Neuland First USA Japan R&D Centre PMDA, Japan inspe
Slide 19: Generic Drug Substance (GDS)
Generic Drug Substance (GDS) We started as a Prime API ..Added Speciality molecules for manufacturer… complex products.. Capability Capability ✓ 3 US FDA and EU GMP compliant ✓ High end complex chemistry capabilities manufacturing facilities ✓ Backend support by R&D department ✓ Collective capacity:
Slide 20: On path to being a preferred partner in CMS
On path to being a preferred partner in CMS.. Services ✓ Manufacturing API to customer specifications ✓ Designing and developing manufacturing processes ✓ Process optimization for competitiveness ✓ Complete CMC partner for the API ✓ Patent protection for processes Business Approach ✓ Local presence
Slide 21: Capabilities
CAPABILITIES
Slide 22: Scaled up Manufacturing Facilities over the years
Scaled up Manufacturing Facilities over the years UNIT-1 233 KL Bonthapally, Hyderabad UNIT-2 363 KL Pashamylaram, Hyderabad UNIT-3 305 KL Gaddapotharam, Hyderabad Year of 1986 1994 2017* Establishment Block - 1, 2, 3, 4, H, KL & S 34 Block-1, 2, 3, FC, NMSM, Mini Block - 1, 2, 4, 5 Blocks plant6 Hy
Slide 23: Backed up by sound R&D capabilities
Backed up by sound R&D capabilities R&D Facility, Hyderabad Infrastructure Significant R&D Achievements • 15 Development Labs with space for • Several NCE APIs added in NDA or commercial stage expansion drugs • 60 Fume hoods • Support for multiple APIs each year in Phase 2 • Analytical Labs and Phas
Slide 24: New capabilities built
New capabilities built FBRM HAZARDOUS & WET LABORATORY Dedicated area Particle size for hazardous check for chemical polymorph management achievement and wet lab expansion PEPTIDE LAB PID LABORATORY, To address 9800 sq. ft. new UNIT-III product quality lab with issues, additional 7 impurities hoods
Slide 25: Global Presence
Global Presence NORTH AMERICA EUROPE APAC 37% 42% 5% JAPAN MENA INDIA 4% 5% 4% BD Office in LATAM Princeton, New Jersey 4% Since 2004 Our BD Office in JAPAN Since 2007 % Refers to FY22 Sales by End market 25
Slide 26: Regulatory Filings Across Geographies
Regulatory Filings Across Geographies 30 Filings with Health Canada 10 20 Japanese DMF filed China DMF filed 62 DMFs with USFDA 19 231 filings with 22 ROW filings including Turkey, KFDA Korea filings with TGA Mexico, Brazil etc ~495 27 EUDMF filings across Germany, CEPs Received for different 916+ F
Slide 27: Financials
FINANCIALS
Slide 28: Continuous Growth…
Continuous Growth… Rs. In Cr FINANCIAL PERFORMANCE 163 HIGHLIGHTS 953 953 144 767 ▪ Revenue CAGR of 12.5% for FY 19-22 led by growth in all 3 businesses 670 105 80 ▪ EBITDA growth of 33.0% CAGR in FY 19-22 due to balanced contribution 61 from both GDS and CMS business 64 16 16 ▪ Shift to CMS and Spe
Slide 29: Stable Balance Sheet..
Stable Balance Sheet.. Particulars Mar-19 Mar-20 Mar-21 Mar-22 Current Ratio (x) ROCE (%) (Rs. Cr) 1.57 11.93 Shareholders 1.47 8.55 696 706 782 836 1.37 1.42 7.60 ' funds 3.89 Net Debt 194 214 152 212 2019 2020 2021 2022 2019 2020 2021 2022 Investments 8 8 7 4 Fixed Asset Turnover (x) Debt to Equit
Slide 30: Outlook
OUTLOOK
Slide 31: ..Laying Foundation for our Growth Strategy
..Laying Foundation for our Growth Strategy CREATE AN ORGANIZATION THAT RESULTS IN VALUE FOR ALL STAKEHOLDERS BUSINESS SCALE Extend capabilities to Invest into capacity to organically build a augment sales and sustainable GDS accelerate business and CMS business growth CHEMISTRY RELATIONSHIPS Deploy
Slide 32: Contact Us
Contact Us For over 38 Years, Neuland Laboratories Ltd. For further information contact (BSE:524558, NSE: NEULANDLAB) has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in close IR Desk to 80 countries. Neuland Labs Neuland Labs has deve
Slide 33: Thank You
Thank You Confidential. © 2021 Neuland Laboratories Ltd. All rights reserved.
Neuland Laboratories — Q4 FY2022 Earnings Presentation on 6ix