Cohance Lifesciences Ltd · NSE:COHANCE
Cohance Lifesciences — Suven Pharmaceuticals — H1 FY24 Earnings Presentation
29 slides from Cohance Lifesciences's earnings presentation, 2023
Slide 1: Suven Pharmaceuticals Ltd. Earnings Presentation Q2 & H1FY24
Suven Pharmaceuticals Ltd. …Towards a Brighter Tomorrow Earnings Presentation Q2 & H1FY24
Slide 2: Risk Statement
Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions, contained in this presentation may be forward-looking statements that involve a number of risks and uncertainties. Although Suven attempts to be accurate in making these fo
Slide 3: Executive Summary: Key Messages from Management
Executive Summary Key Messages from Management • In the first 30 days, transition to the new management is completed smoothly and we feel good about the progress • Met all key customers in person. Customers’ feedback has been encouraging, they are happy with the smooth transition and having multiple
Slide 4: Table of Contents
Table of Contents Pharma CDMO Sector 05 Overview Specialty Chem CDMO Sector 09 Overview Business Overview 11 New Leadership Team 17 Q2 and H1 FY24 operating and 21 financial performance Pg. 4
Slide 5: Pharma CDMO Sector Overview
Pharma CDMO Sector Overview
Slide 6: A $70 Bn+ is the addressable market
Small Molecule CDMO A $70 Bn+ is the addressable market Estimated Market Sizes (in $ Bn) 102 Captive API Outsourced 51 Intermediate 70 On-Patent 147 19 35 Total 51+19 = 70 51 35 Outsourced API Addressable Market Off-Patent Total Spend on Small Molecule CMC Pg. 6 Source: Industry Research
Slide 7: Global CDMO Industry: Small Molecule CDMO Expected Growth of ~7%
Global CDMO Industry: Small Molecule CDMO Expected Growth of ~7% driven by Macro Tailwinds A Small Molecule Pipeline continues to grow B Small Molecule Approvals remain despite growth in Biologics the majority Clinical Phase Pipeline (Phase-1 to Pre-Registration) US FDA New Molecule Approvals Trend
Slide 8: Increased Outsourcing to Asia: India expected to be the biggest beneficiary
Small Molecule CDMO Increased Outsourcing to Asia : India expected to be the biggest beneficiary Both India and China are expected to CAGR (E): increase share of Addressable Market CY22-27 Shift of Outsourcing to Asia (Development + Commercial mfg) ~7% Margin pressures driven by increased manufactur
Slide 9: Specialty Chem CDMO Sector Overview
Specialty Chem CDMO Sector Overview
Slide 10: Agrochemical Industry is going through macro-headwinds
Specialty Chemicals Market Overview Agrochemical Industry is going through macro-headwinds; has come back strongly in the past INVENTORY DESTOCKING Destocking at a large-scale due to inventory pile-up with customers Stocking Levels in customer channel inventory expected to return to normalcy over ne
Slide 11: Business Overview
Business Overview
Slide 12: Suven Pharma: India's Leading Innovator Focused CDMO Company
Suven Pharma: India’s Leading Innovator Focused CDMO Company STRONG FINANCIAL TRACK-RECORD OVER 20+ YEARS DEEP CUSTOMER RELATIONSHIPS WITH MARQUEE BIG PHARMA EXTENSIVE DEPTH AND WIDTH OF CHEMISTRY CAPABILITIES MULTIPLE ENGINES OF GROWTH Pg. 12
Slide 13: Marquee long tenured Customer Base
Marquee long tenured Customer Base 15+ 20+ 100+ Our top 10 pharma Specialty Chemical Active Phase 1- customers customers average 3 projects average tenure tenure 75%+ 13 Projects with Active commercial global innovators projects where Suven is partner of choice Pg. 13
Slide 14: Extensive Depth and Width of Chemistry Capabilities
We have built extensive Depth and Width of Chemistry Capabilities… 34 400+ 880+ Years Experience Scientists Projects Executed • Alkylations • Asymmetric synthesis • Metallation– MeLi / n n-BuLi / LDA/HMDS • Acylation • Carbohydrates • Mitsunobu Reaction • Amidation • Grignard reaction • Oxidation –
Slide 15: Multiple Engines of Growth Across Business Verticals
… With Multiple Engines of Growth Across Business Verticals H1 FY24 - Consolidated Pharma CDMO Specialty Chemicals Formulations And Others 64% 21% 9% • Strong Relationship with Rising • Core Business Vertical • 25+ Years of Relationship with an Agro Pharma • Long Term Relationship with Big Major • P
Slide 16: Scale Suven Pharma into a globally respected CDMO player
We aim to rapidly scale Suven Pharma into a globally respected CDMO player backed by our strategic pillars Scaling work Develop select Nurture world Add new Optimise with existing new customers class talent technologies Operations customers Deepen and leverage Winning business Invest & retain best-
Slide 17: New Leadership Team
New Leadership Team …to drive next phase of growth journey Executive leadership with global techno-commercial expertise to Accelerate Growth
Slide 18: Our new Board of Directors with deep and diverse experience
Our new Board of Directors with deep and diverse experience Annaswamy V. Prasada Raju, Pankaj Patwari Shweta Vaidheesh PhD Jalan Executive Managing Non-Executive Non-Executive Chairperson Director Director Director • 35+ years of diverse experience in • Served as Executive Director at • Managing Dir
Slide 19: Augmented our Executive Leadership Team with key leaders
Augmented our Executive Leadership Team with key leaders from the Industry Dr. Sudhir Kumar Singh Mr. Gaurav Bahadur Mr. Raju Komaravolu Mr. Brian Shaughnessy Chief Executive Officer Chief Human Resource Officer Chief Strategy Officer Chief Commercial Officer • Previously worked with • Previously wo
Slide 20: Advisory Council: Industry Leaders with Rich Global Experience
Advisory Council: Industry Leaders with Rich Global Experience Mr. Venkateswarlu Jasti Mr. Abhijit Mukherjee Mr. James C Mullen Mr. Stefan Stoffel Chairman, Advisory Council Advisor Advisor Advisor • 33+ years work ex • 35+ years work-ex • 40+ years work-ex • Recognized CDMO leader with 40+ years' e
Slide 21: Q2 and H1 FY24 Operating and Financial Performance
Q2 and H1 FY24 Operating and Financial Performance
Slide 22: Q2 & H1 Financial Performance (Consolidated)
Q2 & H1 Financial Performance (Consolidated) PAT growth of ~10% YoY in Q2FY24 and ~11% YoY H1 FY24; Stable Margins Despite Softness in Revenue Operational Revenue (INR Mn) Adjusted EBITDA (INR Mn) Margin (%) Adjusted PAT (INR Mn) Margin (%) 900 40% 34% 2,784 2,311 1,500 44% 50% 700 37% 26% 30% Q2 1,
Slide 23: Segmental Break-up
Segmental Break-up – Pharma CDMO seeing sturdy growth; Spec Chem impacted by destocking Consolidated Financials Pharma CDMO (INR Mn) Spec Chem (INR Mn) Formulations & Other Services (INR Mn) 1,483 1,515 277 1,084 184 Q2 550 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Pharma CDMO (INR Mn) Spec Ch
Slide 24: ~10% PAT growth in Q2FY24; Consolidated P&L Snapshot
~10% PAT growth in Q2FY24; FY24 H1 EBITDA% & PAT% Consistent with Last Few Years Trends INR million CAGR Consolidated P&L Snapshot FY20 FY21 FY22 FY23 Q2FY23 Q2FY24 H1FY23 H1FY24 FY20-23 Q2 YoY H1 YoY Revenue 8,338 10,097 13,202 13,403 2,784 2,311 6,172 5,786 17.1% -17.0% -6.3% COGS (2,292) (3,019)
Slide 25: Strong Balance Sheet with Steady Cash Generation
Strong Balance Sheet with Steady Cash Generation INR million Consolidated Balance Sheet Snapshot Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Property, plant and equipment (PPE) 3,531 4,371 5,306 5,842 5,910 5,717 Right of use asset (RoU) 2 9 17 14 169 169 172 Capital work-in-progress 1,016 961 300 1,6
Slide 26: Consistently Healthy Financial and Return Metrics
Consistently Healthy Financial and Return Metrics 2 2 Key Ratios FY20 FY21 FY22 FY23 H1FY23 H1FY24 Basis Net Working Capital (as days of sales) 97 80 114 98 102 115 Core NWC / Revenue * 365 PPE (as % of sales) 42.3% 43.3% 40.2% 43.6% 47.9% 49.4% Closing PPE / Revenue Capex spend during the year (INR
Slide 27: Contact Information
Contact Information Cyndrella Carvalho, Head - Investor Relations, Suven Pharmaceutical Ltd Tel: +91 9823615656 Email: cyndrella.carvalho@suvenpharm.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ +91 77770 35061 Email: gavin@cdr-india.com / rishab@cdr-india.com Pg. 27
Slide 28: Appendix - Adequate Capacity to serve current and future demand
Appendix - Adequate Capacity to serve current and future demand Jeedimetla, Banjara Hills, Vizag, Andhra Pashamylaram, Telangana, India Suryapet, Telangana, India Telangana, India Hyderabad, India Pradesh, India API & Formulation Facility Intermediate Mfg. Facility R&D–Pilot Plant Corporate Office o
Slide 29: Thank You
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Suven Pharmaceuticals — H1 FY24 Earnings Presentation on 6ix