Syngene International Ltd. · NSE:SYNGENE
Syngene International — Q1 FY21 Earnings Presentation
39 slides from Syngene International's earnings presentation, Jul 21, 2020
Slide 1: Cover letter to stock exchanges
Ref: Syn/CS/SE/IP/2020-21/July/41 Syngene International Limited Biocon SEZ, Biocon Park, Plot No. 2 & 3, Bommasandra Industrial Area, IV Phase, Jigani Link Road, Bengaluru 560 099, Karnataka, India T +91 80 6891 8000 F +91 80 6891 8808 CIN: L85110KA1993PLC01493 July 21, 2020 www.syngeneintl.com To,
Slide 2: Investor Presentation July 21, 2020
Investor Presentation July 21, 2020 Strictly confidential and privileged
Slide 3: Safe harbour
Safe harbour Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statements
Slide 4: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Shareholding and Share Information
Slide 5: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Shareholding and Share Information
Slide 6: Q1FY21 Revenue Rs. 4,369 Mn; EBITDA Rs. 1,398 Mn; PAT Rs. 580 Mn
Q1FY21 Revenue Rs. 4,369 Mn; EBITDA Rs. 1,398 Mn; PAT Rs. 580 Mn Operating Highlights Financial Highlights ▪ CRISIL long term rating upgraded from Crisil AA to Crisil ▪ Quarterly revenue from operations of Rs. 4,216 Mn, AA+ with a stable outlook - an indication of Syngene’s marginally up on the corr
Slide 7: Q1FY21 Financial Performance
Q1FY21 Financial Performance All figures in Rs. Mn unless otherwise specified ▪ Revenues from operations increased by 0.2% led by growth P&L Summary Q1 FY21 Q1 FY20 YoY Change in Discovery Services, supported by steady traction in the Dedicated R&D Centre business Revenue from operations 4,216 4,209
Slide 8: Update on COVID-19
Update on COVID-19 Introduction of shift operations, work from home where Priorities in these uncertain times possible and other protection measures for employees allowed operations to return to near normal levels Safety and wellbeing Client projects of our people back on schedule ▪ National lockdow
Slide 9: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Shareholding and Share Information
Slide 10: Putting science to work: Who we are and what we do
Putting science to work Who we are and what we do ▪ Offering integrated research, development and manufacturing services to take projects from early discovery to commercial supply ▪ Working with clients from around the world to find solutions to their scientific challenges for small and large molecu
Slide 11: Syngene key facts and figures
Syngene key facts and figures All figures are as on March 31, 2020, unless otherwise specified 360+ active clients 8 collaborations 400+ Patents with top 10 pharmaceutical held with clients companies 1.9 Mn sq. ft. 4200+ talented team of 90% employees of World class infrastructure, scientists in 25-
Slide 12: The Syngene advantage
The Syngene advantage Integrated service provider offering end-to-end Flexible and varied business models drug discovery, development and manufacturing To cater to client requirement services on a single platform International accreditations Experienced in successfully managing large OHSAS 18001 Cer
Slide 13: Our experience spans multiple industry segments and partnerships with global leaders
Our experience spans multiple industry segments and partnerships with global leaders across the world Client Base • Four leading US, FY 20 362 Asian, European chemicals and FY 19 polymer 331 manufacturing • Leading China based companies FY 18 316 crop protection • Germany company headquartered FY 17
Slide 14: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Shareholding and Share Information
Slide 15: Biocon group and Syngene
Biocon group and Syngene • Biocon Limited, founded in 1978, is an innovation-led global biopharmaceuticals company • Syngene, a subsidiary of Biocon Limited, was established in 1993 as India’s first Contract Research Organization - Company has 25 years plus of unparalleled experience in novel molecu
Slide 16: About us
About us All figures in Rs. Mn unless otherwise specified A Global CRO Quality Focus • Integrated Drug Discovery, Development and • Quality driven organization Manufacturing service provider • Excellent track record of compliance with • Small and Large Molecules, ADCs, global regulators Oligonucleot
Slide 17: Our journey so far
Our journey so far Foundation Globalization and strategic acquisition • Operations started • Expanded into formulations development • Expansion of R&D Lab • Contract with Endo Pharmaceuticals to develop novel anti cancer biological • Granted 100% Export Oriented Unit (EOU) therapeutic molecules stat
Slide 18: Strong track record of growth and profitability
Strong track record of growth and profitability ▪ Growth driven by increase in sales from existing clients and acquisition of new clients ▪ “Engage, expand and extend” strategy to extend client relationship over a longer period of time ▪ Growth in total number of clients ▪ Increase in average revenu
Slide 19: Multiple levers for growth going ahead
Multiple levers for growth going ahead Expand/Extend Existing Clients Capacity Expansion - High service integration - Consistent investment - Dedicated centres model - FTE services, manufacturing, formulation, biologics, stability Engage New Clients - Tailored service offerings and Client Capacity d
Slide 20: Our divisions
Our divisions Discovery Development Manufacturing Dedicated Services Services Services R&D Centres Solution: Conducts early-stage Solution: Encompasses activities Solution: Manufacturing services for Solution: These centres offer research, from target identification from pre-clinical to clinical tri
Slide 21: Our collaboration models
Our collaboration models Dedicated R&D labs Full-time equivalent (FTE) Fee for service (FFS) • Dedicated scientific and support personnel, • Dedicated scientific resources selected from partner- • Flexible, on-demand resources with targeted customised and managed to partner specified disciplines ski
Slide 22: Our dedicated R&D centres are an industry leading model
Our dedicated R&D centres are an industry leading model 550 Scientists 200 Scientists 170 Scientists 8 Scientists 250,000+ sq. ft. laboratory space 70,000 sq. ft. laboratory space 60,000 sq. ft. laboratory space 3,200 sq. ft. laboratory space Largest R&D Centre in Asia for BMS Dedicated R&D Centre i
Slide 23: Our end-to-end platform enables us to be a one-stop-shop
Our end-to-end platform enables us to be a 'one-stop-shop' for discovery, development and manufacturing (small and large molecules) Discovery Development Manufacturing Chemistry Drug Substance Clinical Supplies Drug Product Small Molecules Large Biology Molecules Integrated Drug Substance – HPAPI Dr
Slide 24: Discovery Services: From target to a drug candidate
Discovery Services: From target to a drug candidate Candidate Hit to lead Lead optimisation Development selection Candidate Candidate 5 Lead Selection Development Compounds Exploratory PK, Tox and Developability Assessment 20 Lead In-Vivo DMPK Profiling, Compounds CADD 500 Lead Generation of focused
Slide 25: Development Services
Development Services ▪ Encompass activities across multiple disciplines as a molecule moves from pre- clinical to clinical trials Preclinical Studies ▪ Key activities include: Drug product ▪ Drug substance development (process R&D and optimisation) Drug Dvpt. Substance ▪ Drug product development (pr
Slide 26: Manufacturing Services
Manufacturing Services Small Molecules • State-of-the-art cGMP (Current Good Manufacturing Practices) facility to manufacture new chemical entities (NCEs) • Designed to support multi gram to 100s of kgs/ batch of Intermediates and APIs for clinical trials • New greenfield investments done in Mangalu
Slide 27: Backed by world class state of the art infrastructure
Backed by world class state of the art infrastructure HQ Campus – 90 Acres where most of Syngene’s capabilities are housed today R&D Expansion: Genome Valley, Hyderabad, India commenced operation in Aug 2019 Biologics Expansion: HQ Campus Biologics Manufacturing Plant API Mfg Expansion: Commercial M
Slide 28: Supported by our highly experienced and qualified team of scientists
Supported by our highly experienced and qualified team of scientists ~5,000* 60,000 23*% strong pool of employees hours of training per year female employees vs 15% in FY16 Environment that engages our employees and enables them to grow 4200*+ scientists delivering quality output and creating compet
Slide 29: Led by a globally experienced management team
Led by a globally experienced management team Management team Jonathan Hunt Dr. Mahesh Bhalgat Sibaji Biswas Ashu Tandon Vinita Shrivastava Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Commercial Officer Chief Human Resources Officer Previous AstraZeneca Sanofi, Amge
Slide 30: Advised by visionary Board of Directors
Advised by visionary Board of Directors Member of he Board Kiran Mazumdar Shaw Jonathan Hunt Dr Bala S. manian Dr. Carl decicco Professor Catherine Rosenberg Non-Executive Chairperson Managing Director and Chief Independent Director Independent Director Non-Executive Director Executive officer Chair
Slide 31: Committed to sustainability
Committed to sustainability Safety is at the heart of everything we do Committed to environmental protection Accredited with ISO 45001:2018 for its Occupational Health Accredited with ISO 14001:2015 for its effective and Safety (OH&S) measures Environment Management System (EMS) 1000 KL per Reductio
Slide 32: Consistently received recognition for our scientific capability and best practices
Consistently received recognition for our scientific capability and best practices • Ranked as one of the 25 fastest growing companies in India by Outlook Business • India Pharma Award 2019 - For “Excellence in Contract Research and Manufacturing Services” at CPhI and P-MEC India Expo • Organization
Slide 33: Proactively managing risks
Proactively managing risks Mitigation Risk Mitigation • Widening scope of engagement through new service offerings Client retention and • BCP in place to ensure continuity of • Investment in business development growth operations (Technology to aid remote Business continuity due to working, Continuo
Slide 34: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Shareholding and Share Information
Slide 35: Q1 FY21 financial highlights
Q1 FY21 financial highlights All figures in Rs. Mn unless otherwise specified Particulars Q1 FY21 Q4 FY20 Q1 FY20 QoQ Change YoY Change Revenue from operations 4,216 6073 4,209 (31%) 0.2% Other Income 153 205 205 (25%) (25%) Total Revenue 4,369 6,278 4,414 (30%) (1%) Material and Power costs 1,019 1
Slide 36: FY20 financial highlights
FY20 financial highlights All figures in Rs. Mn unless otherwise specified Particulars FY20 FY19 YoY Change Revenue from operations 20,119 18,256 10% Balance Sheet Highlights Other Income 816 751 9% Total Revenue 20,935 19,007 10% As on 31st March 2020 Material and power costs 5,652 5,726 (1%) Emplo
Slide 37: Contents
Contents 1 Operating and Financial Highlights 2 Syngene – Putting Science to Work 3 Company and Business Overview 4 Financials 5 Shareholding and Share Information
Slide 38: Shareholding and Share Information
Shareholding and Share Information Syngene’s Shareholding Pattern* Syngene’s Share Information* NSE Ticker SYNGENE BSE Ticker 539268 1% Promoter & Market Cap (Rs. Mn) 160,360 28% Promoter Group % free-float 29% Public Free-float market cap (Rs. Mn) 47,065 Share Outstanding (Mn) 400 ESOP Trust 3M ADT
Slide 39: Thank You
THANK YOU For more details www.syngeneintl.com • Visit www.syngeneintl.com • Link to latest FY20 Annual Report • IR Contact: Krishnan G + 91 806 891 9807 investor@syngeneintl.com Putting Science to Work
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