Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Q2 & H1 FY21 Earnings Presentation
32 slides from Jb Chemicals & Pharmaceuticals's earnings presentation, Nov 10, 2020
Slide 1: J. B. Chemicals & Pharmaceuticals Limited – Company Presentation cover letter
J. B. CHEMICALS & PHARMACEUTICALS LIMITED November 10, 2020 National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex Bandra (E) Mumbai 400 051 Stock Symbol: JBCHEPHARM Dear Sir, Sub: Company Presentation Enclosed is Company's presentation on financial results for the quarter and
Slide 2: Q2 & H1 FY21 – Financial Results
Q2 & H1 FY21 – FINANCIAL RESULTS JB CHEMICALS AND PHARMACEUTICALS LIMITED
Slide 3: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Index
Index 4 12 17 25 Company Q2 & H1 FY21 Business Historial Overview Financial Overview Financial Performance Performance 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Corporate Snapshot
Corporate Snapshot o Over four decades of business presence with established operations in India and international markets o Strong brands, world-class production capabilities and established marketing/distribution provide strategic framework for growth o Well-established domestic formulations franc
Slide 7: Multi-dimensional pharma company with several growth drivers
Multi-dimensional pharma company with several growth drivers 40+ Years of operations with consistent track record across multiple businesses 5 Brands among top 300 brands, contributing over 80% of domestic formulations revenues 29% Growth in chronic therapies* in the domestic formulations business 2
Slide 8: Change in controlling stake and management
Change in controlling stake and management KKR acquires controlling equity stake: KKR has completed acquisition of 54% stake in JBCPL from the founding promoters of the company, funded from KKR’s Asian Fund III, a $9.3 billion fund focused on investments in private equity transactions across the Asi
Slide 9: Strengthening of Board of Directors
Strengthening of Board of Directors o Three new non-executive and independent directors appointed o The Board is Chaired by Mr. Ranjit Shahani Mr. Ranjit Mr. Sumit Mrs. Padmini Shahani Bose Khare Kaicker Global business leader with over 40 Former member of the Indian Managing Partner of B. K. Khare
Slide 10: KKR: Committed to transform JBCPL into a best-in-class pharma platform
KKR: Committed to transform JBCPL into a best-in-class pharma platform JBCPL Acquisition – Belief in Sustainable Growth Opportunity o Kohlberg Kravis Roberts & Co. L.P. (“KKR”) is a leading global Key Drivers…… investment firm with industry-leading investment experience, in-depth industry knowledge,
Slide 11: KKR has invested ~$14bn Globally in Health Care since 2004
KKR has invested ~$14bn Globally in Health Care since 2004 Biopharmaceuticals Medical Devices Providers Other Services Life Sciences Tools/Diagnostics As of September 30, 2020. Includes invest ments mad e by KKR’s Priv at e Equity, Growth Equity , and Core Invest ment St rat egi es, as well as the K
Slide 12: CEO's Message
CEO’s Message Nikhil Chopra, CEO, JBCPL on Future Outlook: “I am delighted to be at the helm of JBCPL, a company with a strong business model and multi-pronged drivers of long-term growth. With management control transitioning to KKR and the new management team coming on board, the company is unique
Slide 13: Q2 & H1 FY21 Financial Performance
Q2 & H1 FY21 Financial Performance 12
Slide 14: Financial Overview
Financial Overview Revenues (INR cr) o Domestic Formulations and International businesses maintain positive momentum 966 903 o * Exports order book remains healthy (Sep 20 order book growth Rs. 57 cr deferred into October of 39% over Sep 19) – however, Rs. 57 crore of planned Q2 dispatches have been
Slide 15: Financial Overview
Financial Overview Profit Before Tax (INR cr) Margin (%) 26.5% o Marginal decline in Profit Before Tax during Q2 FY21 due to: 22.2% 22.4% 21.4% 256 • Deferment of export shipments of Rs. 57 crore to 194 October 102 99 • Lower other income earned during Q2 FY21 consequent to marked-to-market mark-dow
Slide 16: Revenue Analysis
Revenue Analysis Domestic Formulations* (INR cr) o JBCPL is among the fastest growing companies as per IPM data: 411 438 • July-Sep'20: JBCPL 21.5% vs market growth rate at 4% o Robust growth in Cardiac segment o Gradual demand recovery in acute segment 204 214 o Increasing level of digital engageme
Slide 17: Abridged Balance Sheet
Abridged Balance Sheet Balance Sheet Sep-20 Mar-20 Net Worth 1,629 1,438 Debt 31 32 o Cash position continues to improve with no major spending during H1 – net debt-free, cash-positive status Other Liabilities 138 103 o Higher inventory position reflective of: Total Liabilities 1,798 1,573 • Deferme
Slide 18: Business Overview
Business Overview 17
Slide 19: Fast growing Domestic Formulations business
Fast growing Domestic Formulations business JBCPL is the amongst the fastest Leadership position growing pharma companies in the covered markets Extensive doctor and patient connect 4 Team Structure Pan India 15% 30% + share in 5 molecule HCP coverage Vs market growth* categories of 5% 75,000 40,000
Slide 20: Fueled by growth in chronic segment and big brands becoming bigger
Fueled by growth in chronic segment and big brands becoming bigger Increasing contribution from chronic therapies leading to industry outperformance Chronic Therapies (%) Domestic Formulations* (INR cr) Growth Levers Portfolio expansion in chronic segment 797.1 674.6 BD/ In-licensing and strategic p
Slide 21: Clearly defined businesses across key geographies
Clearly defined businesses across key geographies International Business Business interests across Direct presence in Russia Distributor relationships in the US, formulations, CMO and API’s and South Africa Asia, Africa and Latin America APIs 7.6% Contract Manufacturing 18.6% International Revenues*
Slide 22: Formulations presence in 40+ regulated/semi-regulated markets
Formulations presence in 40+ regulated/semi-regulated markets International Business Direct presence with own field force in high-potential branded generics emerging markets Expanding focus on private markets in South Africa; consolidating in public, veterinary, hospitals and export markets Prescrip
Slide 23: CMO and API leverage organizational strengths
CMO and API leverage organizational strengths International Business Contract Manufacturing APIs Projects focused on lozenges, syrups, tablets, ointments and creams Regulated markets focus – exports to European MNCs o Top 5 manufacturer of medical/herbal lozenges with significant market opportunity
Slide 24: Growth Levers
Growth Levers International Business International Expand into additional high potential emerging markets Formulations Strengthen position in established markets, adding products/brand extensions Focus on niche, difficult to produce or limited competition products in the US API Well-positioned to ca
Slide 25: Manufacturing Facilities
Manufacturing Facilities Facility Products Compliance approvals Tablets, capsules USFDA, UK, AU, SA, EU Panoli, Gujarat IV infusions SA, Russia, EU (Campus 1) Liquids AU, EU, Russia, Ukraine Topicals AU, EU, Russia, Ukraine Vials Brazil, Russia, Ukraine Panoli, Gujarat IV infusions Russia, Ukraine (
Slide 26: Historical Financial Performance
Historical Financial Performance 25
Slide 27: Strong revenue growth and margin expansion
Strong revenue growth and margin expansion Revenues (INR cr) 1,775 o Growth acceleration following realignment of go-to- 1,643 1,413 market model and expansion of sales force in India with greater focus on chronic therapies o Expansion of global footprint, leveraging existing products along with gro
Slide 28: Accelerated profit growth
Accelerated profit growth Profit After Tax (INR cr) Margin (%) 15.3% 11.8% 272 9.9% o Growth initiatives delivered on a largely stable capital 194 base through higher utilization of capacities 139 o Debt-free, cash surplus status maintained despite increasing pay-outs to shareholders FY18 FY19 FY20
Slide 29: Broad-based growth contribution
Broad-based growth contribution Domestic Formulations* (INR cr) o Consistently outpaced the market by focusing on key brands and chronic therapies 797 o Sales Force expansion and divisionalization over the last three years has 675 enabled therapy focus, resulting in: 588 • Top 5 brands improving the
Slide 30: Substantial improvements in shareholder returns and consistent cash generation
Substantial improvements in shareholder returns and consistent cash generation Net Cash Position (INR cr) ROCE* 468 28% 435 402 24% 15% FY18 FY19 FY20 FY18 FY19 FY20 Operating Cash Flow (INR cr) Free Cash Flow (INR cr) 275 202 194 145 123 87 FY18 FY19 FY20 FY18 FY19 FY20 29 * ROCE = EBIT/(Net Worth
Slide 31: About J.B. Chemicals & Pharmaceuticals Limited
About J.B. Chemicals & Pharmaceuticals Limited J.B. Chemicals and Pharmaceuticals Limited (JBCPL) (BSE: 506943 | NSE: For further information, please JBCHEPHARM | ISIN: INE572A01028), established in 1976, is one of India's leading pharmaceutical companies. An integrated, publicly-listed organization
Slide 32: Thank You
Thank You 31
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