Hikma Pharmaceuticals Plc · LSE:HIK
Hikma Pharmaceuticals — H1 2012 Earnings Presentation
27 slides from Hikma Pharmaceuticals's earnings presentation, August 2012
Slide 1: Hikma Pharmaceuticals Interim Results Presentation August 2012
Hikma Pharmaceuticals Interim Results Presentation August 2012
Slide 2: ■ This document, which has been issued by Hikma Pharmaceuticals PLC (the “Company”), comprises
■ This document, which has been issued by Hikma Pharmaceuticals PLC (the “Company”), comprises the written materials/slides for a presentation. This document and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or publis
Slide 3: Said Darwazah, Chief Executive Officer
Said Darwazah Chief Executive Officer
Slide 4: H1 2012 highlights: Injectables and Branded businesses driving strong growth
H1 2012 highlights Injectables and Branded businesses driving strong growth ■ Diversified business model continues to drive a strong performance ■ Double-digit growth in key MENA markets reflects recent investments in local manufacturing, sales and marketing and portfolio development ■ Excellent per
Slide 5: Khalid Nabilsi, Chief Financial Officer
Khalid Nabilsi Chief Financial Officer
Slide 6: Consolidated P&L: Strong Group performance in the first half of 2012
Consolidated P&L Strong Group performance in the first half of 2012 $ million H1 2012 H1 2011 Change Revenue 532.3 394.8 + 34.8% Gross profit 234.1 172.6 +35.6% Gross margin 44.0% 43.7% +0.3 Operating profit 75.1 49.0 +53.1% Adjusted1 operating profit 82.1 59.7 +37.4% Adj t d operating Adjusted ti m
Slide 7: Branded: Double-digit revenue growth across key MENA markets
Branded Double-digit Double digit revenue growth across key MENA markets Revenue($ million) Adjusted1 operating profit ($ million) 60 + 10.5% 250 + 24.6% 248.8 52.6 growth 47.5 225.2 40 200 199.6 + 12.8% organic growth 150 20 100 0 H1 2011 H1 2012 Operating margin 50 H1 2011 H1 2012 Change Reported
Slide 8: Injectables: Excellent growth in revenue and profitability
Injectables Excellent growth in revenue and profitability Revenue ($ million) Adjusted1 operating profit ($ million) 225 2 225.2 50 136.6 49.5 200 40 + 94.0% + 205.4% 30 150 116 1 116.1 20 43.6 16.2 100 + 213.0% 10 37.0 36.4 0 50 + 1.9% H1 2011 H1 2012 51.6 36.1 Operating p g margin g + 42.9% H1 201
Slide 9: Generics: Performance reflects slowdown during remediation work
Generics Performance reflects slowdown during g remediation work Revenue ($ million) Adjusted1 operating profit ($ million) 12 90 10 10.2 80 8 76.4 70 0 - 27.0% 6 60 - 132.4% 4 55.8 50 2 40 H1 2012 0 H1 2011 30 -2 2 -3.3 20 -4 10 Operating margin 0 H1 2011 H1 2012 Change H1 2011 H1 2012 Reported 13.
Slide 10: Cash Flow: Strong management of working capital
Cash Flow Strong management of working capital Operating cash flow ($ million) ■ Operating cash flow increased by $27.9 $27 9 million to $47.1 million 50 ■ Improved profitability, better working capital 45 47.1 management and non-recurring MSI cash injection in H1 2011 40 ■ Working capital days redu
Slide 11: Capital expenditure: Investment focussed on Branded growth and MSI integration
Capital expenditure Investment focussed on Branded growth and MSI integration Capital expenditure ($ million) 35 33.0 - 20.9% ■ Development of Hikma Chemicals in Jordan 30 4.3 3.1 26.1 ■ Investment in our new business in Sudan 25 25.6 7.9 20 ■ Maintenance capex across our MENA 2.5 facilities, includ
Slide 12: Balance sheet: Solid balance sheet
Balance sheet Solid balance sheet Net debt position at 30 June 2012 ($ million) 200 ■ Increased I d borrowing b i i the in th first fi t half h lf off 2012 was to fund: 121.0 97.3 100 ■ Capital expenditure Short-term Short term Long-term Long term borrowing borrowing ■ Purchases of intangible assets
Slide 13: Summary: Outlook for 2012
Summary Outlook for 2012 ■ Group revenue growth of around 20% ■ Branded revenue growth of around 20% with gross margin and adjusted operating margin broadly in line with 2011 ■ Injectables performance in the first half to be sustained in the second half ■ Generics revenue of $115 million and breakev
Slide 14: Generics Review
GENERICS REVIEW
Slide 15: Focus on leveraging our MENA facilities and investing in R&D
Focus on leveraging our MENA facilities and investing in R&D Percentage of Generics sales produced in MENA* US Generics product pipeline 30.0% 25 24 26.8% 27.2% 22 25.1% 25.0% 5 0% 20 21.2% 20.0% 15 14 15.0% 10 10.0% % 9.4% 7.2% 5 5.0% 3 0.0% 0 2007 2008 2009 2010 2011 H1 R&D partnerships Unimark**
Slide 16: Branded Review
BRANDED REVIEW
Slide 17: Strong organic growth driven by the strength of our operations across MENA
Strong organic growth driven by the strength of our operations across MENA ■ Recent investments in local manufacturing Sales and marketing employees by country, June 2012 New capacity in Egypt and upgrades in -New Tunisia enable us to meet strong market demand ■ Reorganisation of our sales and marke
Slide 18: Focusing our portfolio on higher value products in key therapeutic areas
Focusing our portfolio on higher value products in key therapeutic areas 80% Vexal market share vs. Originator, Jan -June 2012 (%) SAUDI ARABIA 62% 52% Efexor ■ Building our CNS portfolio 60% 48% (Originator) (O i i t ) 39% 35% ■ Launched generic venlaflaxin (Originator: Efexor, 40% Hikma Brand: Vex
Slide 19: Successfully bringing new products to market to drive future growth
Successfully bringing new products to market to drive future growth Recent MENA product launches by country H1 2012: 30 products launched H1 2012 launches 16 2011 40 products FY 2011: d t llaunched h d 2011 llaunches h 14 12 5 10 8 6 6 10 2 4 4 8 8 2 5 4 2 3 2 2 2 2 0 1 Egypt Algeria KSA Lebanon Jor
Slide 20: Injectables Review
INJECTABLES REVIEW
Slide 21: Injectables performing well across all three geographies
Injectables performing well across all three geographies H1 2012 Injectables revenue by region 60.7% 22.9% 16.4% MENA US Europe & ROW Page 20
Slide 22: Growing our share of the US injectables market by volume and value
Growing our share of the US injectables market by volume and value US generic injectables market share (million eaches) US generic injectables market share ($ million) 180 700 22.1% 32.5% 160 600 140 500 15.8% 120 13.6% 400 100 16.3%16.3% 80 300 8.5% 7.8% 60 200 40 6.9% 3.3% 3.1% 2.8% 4.1% 4.0% 3.8%
Slide 23: Focusing on future growth in US injectables supported by a strong product pipeline
Focusing on future growth in US injectables supported by a strong product pipeline ■ Raising prices and prioritising higher value products US Injectables pipeline at 30 June 2012 ■ Winning new contracts and customers 20 18 ■ Expanding capacity in line with demand 18 17 16 ■ Acquiring new products 15
Slide 24: European sales driven by new product launches and contract manufacturing
European sales driven by new product launches and contract manufacturing Growth in global contract manufacturing sales - H1 2012 ■ Strong demand in Germany for key sterile products like vancomycin, meropenem and cefuroxime +32.8% ■ Growth in European and global contract manufacturing sales driven by
Slide 25: MENA Injectables revenue driven by strong growth across key markets
MENA Injectables revenue driven by strong growth across key markets MENA injectables sales growth ($ million) 25% H1 2011 H1 2012 75% 17% >100% >100% Algeria KSA Jordan Libya Tunisia Page 24
Slide 26: Conclusion
CONCLUSION
Slide 27: Continuing our strong track record of growth
Continuing our strong track record of growth Acquired Baxter’s Multi Source Injectables (US) in May 2011 Acquired minority stake in Unimark (India) and Haosun (China) Acquired 94.1% of Promopharm in Morocco Group revenues ($ million) Acquired Elie Pharmaceuticals in Sudan Inauguration of Dar Al Arab
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