Solara Active Pharma Sciences Ltd. · NSE:SOLARA
Solara Active Pharma Sciences — Q1 FY2019 Earnings Presentation
30 slides from Solara Active Pharma Sciences's earnings presentation, Aug 14, 2018
Slide 1: Pure play APIs
Pure play APIs. SOLARA ACTIVE PHARMA SCIENCES | AUGUST 18 Investor Presentation and Q1 FY19 Performance review Dated 14th August 2018 1
Slide 2: Young but enterprising
YOUNG BUT ENTERPRISING. SOLARA IS YOUNG BUT DIFFERENTIATED TO THE CORE WITH ITS BUSINESS MODEL
Slide 3: Evolution on an experienced foundation
Evolution on an experienced foundation Demonstrated operational excellence over 2 decades • Demerged the select API business of Strides Shasun to • Demerged Human API business from SeQuent to operate as integrate with human API business of SeQuent Pure Play animal healthcare company • Expansion acro
Slide 4: Building on strong core values
Building on strong core values Doing what is ‘RITE’ for the customers Respect Transparency We treat each other and our partners with Through timely communications, it is our endeavor to respect. We value and respect each others keep our stakeholders, suppliers and customers time. We will always resp
Slide 5: Pure-play APIs with focused business orientation
Pure-play APIs with focused business orientation API only business model with large scale infrastructure, wide products and established customer relationships Capabilities Research Complex chemistry capabilities including Pipeline of 20+ products under handling of catalytic hydrogenation, hydride di
Slide 6: Changing API landscape
CHANGING API LANDSCAPE. THE API INDUSTRY GLOBALLY IS IN THE TRANSITION AND SOLARA GETS THE ADVANTAGE
Slide 7: While the opportunity is growing, it needs a focused play
While the opportunity is growing, it needs a focused play Trends indicating favorable play for companies with focused API play USFDA’s increasing Supply chain IP conflicts and Increasing Pollution and oversight on APIs discontinuance competing interests Environmental Concerns • FDA’s increased overs
Slide 8: Solara is in a sweet spot amongst the peer group
Solara is in a sweet spot amongst the peer group Our core strategy is in sync with the trends , focus is now on steady execution Control over supply chain for APIs Commitment to highest levels of Compliance • Comfort to customers with a backward integrated setup that ensures supply F C • Integrated
Slide 9: Strategically poised
STRATEGICALLY POISED. SOLARA IS WELL DESIGNED TO SCALE A PROMISING AND EXPANDING BUSINESS
Slide 10: Robust manufacturing capabilities
Robust manufacturing capabilities 5 facilities with all major regulated market approvals Core focus • Mirrored facilities for developing products • Deploy systems that are highly automated and stringent, specifically in the labor intensive areas. • Focus on technology and production processes that r
Slide 11: Wide product offerings and pipeline
Wide product offerings and pipeline Rich basket of niche high value products for the global markets 50+ 20+ 130+ APIs APIs under development DMFs filed Predominantly in Anthelmintic, across Anthelmintic, Anti- with regulators across US, UK, Anti-malarias, Anti-infective, malarias, Beta blockers, Jap
Slide 12: Foothold in key markets
Foothold in key markets Establishing relationship with customers ensuring business enhancement 26% 38% EU 5% US 1% MENA Japan 9% 18% WHO SE Asia 3% LatAm 12
Slide 13: Strong Compliance and Quality Framework
Strong Compliance and Quality Framework Consistently deliver high quality products that can be relied upon by both our customers and regulators Competitive Competitive compliance demonstrated through various successful customer and regulatory audits Multilayered Appropriate cGMP for all phases of In
Slide 14: Experienced Leadership and execution team
Experienced Leadership and execution team Jitesh Devendra (Jitesh) CEO Jitesh has more than 20 years’ experience and has led the North America API business as well as managed the Formulations P&L business of erstwhile Shasun Pharmaceuticals Limited, which got merged with Strides Shasun Limited. Jite
Slide 15: Independent board with strategic oversight
Independent board with strategic oversight Deepak Vaidya Nirmal Bhogilal Independent Director Non-Exec. Director & proposed Chairman Fellow member of the ICA in England and Wales. Chairman of the Batliboi Group. He was Past He has previously worked as the Country Head of President and Committee Memb
Slide 16: Growth strategy
GROWTH STRATEGY. INTEGRATE, EXPAND AND SEAMLESSLY EXECUTE
Slide 17: Enablers for the growth strategy
Enablers for the growth strategy Focus on differentiated strategy led by technology, compliance, and internationally relevant infrastructure Efficiencies in manufacturing operations Accelerate R&D Choosing the right products , optimizing costs and Augmenting the existing R&D capabilities finding the
Slide 18: Efficiencies in manufacturing operations
Efficiencies in manufacturing operations Following a strategy of creating dedicated trains after assuring demand Core strategy around product selection and lean manufacturing practices Driving the asset turns from 1.0x to 1.3x Consistency and efficiency of planned Choosing the right products , getti
Slide 19: Accelerate R&D engine - A strong base to propel growth
Accelerate R&D engine-A strong base to propel growth Augmenting the existing R&D capabilities at Chennai with a state of the art facility at Jigani, Bangalore Propelling the growth with the product development $7m Prime focus to develop products with complex chemistry such as polymer chemistry & pro
Slide 20: Accelerate R&D engine - Building on synthetic capabilities
Accelerate R&D engine-Building on synthetic capabilities Polymer Chemistry Carbohydrate chemistry Inorganic chemistry Peptide chemistry Organometallic chemistry Multistep complex chiral molecules Enzymatic chemistry & Natural product synthesis 20
Slide 21: Accelerate R&D engine - Analytical Development
Accelerate R&D engine-Analytical Development Analytical method validation and method transfer as per ICH guidelines and FDA requirement for key starting materials, Intermediates & API Compliance Impurity profiling US FDA audited and approved analytical laboratory facility Impurity profiling and Quan
Slide 22: Expand Capabilities
Expand Capabilities Step up investments to setup flagship facility and drive innovation and compliance to the next level Environment Chemistry Compliance Capacity Environment and health as Focus on the designing of Significant emphasis to Building a highly automated non-negotiable values that produc
Slide 23: Q1 FY19 Performance
Q1 FY19 PERFORMANCE. AN EVENTFUL YEAR FOR THE STRATEGIC GOALS
Slide 24: Key Highlights for Q1FY19
Key Highlights for Q1FY19 “ Financial Update(QoQ)1 Corporate developments Business Update “We are pleased with the positive • Total Revenue was ₹ 3,033 mn • Listing of equity shares of the • Sales was primarily driven by a beginnings of the new fiscal under Solara. for Q1FY19 as compared to company
Slide 25: Q1FY19 Performance - QoQ
Q1FY19 Performance - QoQ Financial Highlights Quarterly Trend Particulars Q1 FY19 Q4 FY18 Change Revenues Operating EBITDA Reported EBITDA Revenue 3,033 2,871 6% 3033 2871 Operating EBITDA 631 492 28% 2338 Operating EBITDA Margins 20.8% 17.1% 370bps R&D Cost (97) (28) Forex gain/(Loss) (98) (47) 631
Slide 26: Q1FY19 Performance - YoY
Q1FY19 Performance - YoY Financial Highlights Quarterly Trend Particulars Q1 FY19 Q1 FY18 Change Revenues Operating EBITDA Reported EBITDA Revenue 3,033 2,338 30% 3033 2871 Operating EBITDA 631 380 66% 2338 Operating EBITDA Margins 20.8% 16.3% 450bps R&D Cost (97) - Forex gain/(Loss) (98) 19 631 380
Slide 27: FY18 Recap
FY18 Recap Q4FY18 Review Key Balance Items Particulars FY18 Proforma FY17 Proforma Change Balance sheet items Value in ₹m Shareholders' funds 7,640 Revenue 11,215 9,463 18.5% Less: Goodwill -3,634 Operating EBITDA 1,537 1,186 29.6% Net worth 4,006 Operating EBITDA Margins 13.7% 12.5% Term Loan 3,027
Slide 28: 5 years perspective
5 years perspective Business Continuity Portfolio of new products and new customers to augment current base and enable steady growth Worldwide Presence Established strongholds in key regulated markets and growth territories Well on its path to become a leading pure-play API company with focus on hig
Slide 29: Solara Differentiators
Solara Differentiators Product Value Service • Quality of the Product • One Global Quality Policy • Exports to several countries • Matured and New API • Price and Speed • Reliable supplier • Pure Play API Company • Trust • Non-Compete • Focus approach to attain New Markets • Regulatory needs of the
Slide 30: Thank you
THANK YOU. www.solara.co.in 30
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