Slide 1: Investor Presentation Q1 FY20
Investor Presentation Q1 FY20 9th August 2019 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reserved.
Slide 2: Forward looking statement
Forward looking statement Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks an
Slide 3: Agenda
Agenda ▪ Company at a glance ▪ Revenue composition ▪ History & acquisition track record ▪ Long-term strategy ▪ Research & development ▪ Operational review and financials ▪ Quarterly review - Q1 FY20 ▪ Investment rationale ©2019 – Marksans Pharma Limited, All Rights Reserved. 3
Slide 4: Company at a glance
Company at a glance ©2019 – Marksans Pharma Limited, All Rights Reserved. 4
Slide 5: Company overview
Company overview Business Description Revenue Mix Product Portfolio Rs. Cr. • Marksans Pharma Ltd., headquartered at Pain Management 297 Mumbai, is engaged in Research, Manufacturing OTC Rx Cardiovascular System (CVS) 156 & Marketing of generic pharmaceutical 46.06% 53.94% Cough & Cold 139 formulati
Slide 6: Company timeline
Company timeline Spun-off into a Acquired Bell Revenue Received first separate entity Sons & crossed Rs ANDA approval as Marksans Company Ltd. 1000 crore for in the USA Pharma Ltd. in the UK the first time 2003 2007 2011 2019 2001 2005 2008 2015 Incorporated as Acquired Acquired a subsidiary of Acqu
Slide 7: Company structure
Company structure Marksans Pharma (UK) Limited Marksans Holdings Limited Wholesale Distribution of distribution of quality generic generic pharma pharma Manufacturer of OTC Manufacturer of Liquids & Ointments range of OTC & Rx products ©2019 – Marksans Pharma Limited, All Rights Reserved. 7
Slide 8: Manufacturing capabilities
Manufacturing capabilities Goa, India Southport, UK Farmingdale, USA • Manufactures oral solid tablets and • Manufactures non-sterile liquids, • Manufactures soft gels, tablets and soft gelatin capsules ointments and powder product capsules • One of the biggest manufacturing • Supplies to UK, West A
Slide 9: Revenue composition
Revenue composition ©2019 – Marksans Pharma Limited, All Rights Reserved. 9
Slide 10: The US, North America has increased its share in revenue over the past years
The US, North America has increased its share in revenue over the past years REVENUE MIX Europe, UK US, North America Australia, NZ RoW Company’s business is 3% 7% 6% 4% 6% classified under 4 heads: 11% 12% 14% 11% 12% • North America/ US generics 20% • Europe/UK generics 36% 45% 41% 41% • Australia
Slide 11: The UK is the highest contributor to Marksans Pharma's revenues
The UK is the highest contributor to Marksans Pharma’ s revenues Overview of the market • The UK pharmaceutical market is estimated to grow from ~USD 29 billion in 2015 to ~USD 43 billion by 2020, at a CAGR of 8.4%, driven primarily by a robust life sciences 413.0 industry Company presence Total rev
Slide 12: Marksans is among a few Indian players with a proprietary marketing presence in the US
Marksans is among a few Indian players with a proprietary marketing presence in the US Overview of the market • The US holds over 30-40% of the global pharmaceutical market. It is expected to reach USD 190.4 billion by 2024, at a The projected CAGR of 10.6% during 2019-2024, due to favoring United 4
Slide 13: Australia and NZ region registered highest growth among regulated markets in FY19
Australia and NZ region registered highest growth among regulated markets in FY19 Overview of the market • Australia’s pharmaceutical market is set to rise from >$22.85 billion in 2016 to $25.2 billion by 2020 registering a CAGR of Australia 2% and New 119.9 Company presence Total Revenues • Zealand
Slide 14: After harnessing the regulated markets, Marksans is venturing out in the emerging countries
After harnessing the regulated markets, Marksans is venturing out in the emerging countries Overview of the markets • ROW includes markets of South East Asia, MENA, Russian Federation & Africa Rest of 60.3 Company presence Total Revenues • the world (र Cr.) Targeting four major clusters such as Sout
Slide 15: History & acquisition track record
History & acquisition track record ©2019 – Marksans Pharma Limited, All Rights Reserved. 15
Slide 16: The Marksans Evolution
The Marksans Evolution Investment Phase Consolidation Phase Recovery Phase Growth Phase FY05 - 09 FY10 - 12 FY13 - 16 FY17 - 19 • Acquired 3 companies: • Integration of acquired • Acquired Time-Cap • The Company crossed Rs 1. Nova Pharmaceuticals companies was running Laboratories Inc. 1000 crore in
Slide 17: Transformation over the years
Transformation over the years Geographic • Marksans commenced business with CRAMS The Company • Marksans commenced operations as a presence directed at the UK and Australian markets was largely a formulations manufacturing enterprise and growth • The Company entered the US market in 2011- manufactur
Slide 18: Long-term strategy
Long-term strategy ©2019 – Marksans Pharma Limited, All Rights Reserved. 18
Slide 19: Strategic focus on regulated markets
Strategic focus on regulated markets Marksans Pharma generates 94% of its revenues from regulated markets • The Company markets products in 25+ countries with the UK and the US being the largest. The Company’s prominent markets, include Australia, New Zealand, Canada and several other European count
Slide 20: Niche formulations with few competitors
Niche formulations with few competitors Marksans is currently one of the most active Indian firms focused in Softgel segment • Differentiated offerings: Focused on softgel capsules with a view to build a differentiated set of offerings in the crowded generics market • Limited competition - Given the
Slide 21: One of the few mid and small-sized pharma companies to have a forward integrated business model
One of the few mid and small-sized pharma companies to have a forward integrated business model R&D and Manufacturing Goa & Mumbai* (India) Southport (UK) Farmingdale (US) Supply chain and EXPORT distribution Australasia EMEA UK & Europe North America / Canada ROW End Consumers Retail chains Pharmac
Slide 22: Research & development
Research & development ©2019 – Marksans Pharma Limited, All Rights Reserved. 22
Slide 23: R&D continues to be the backbone of the Marksans
R&D continues to be the backbone of the Marksans Marksans has India’s leading R&D facilities for generic molecules: • The Company invested in R&D facilities to strengthen the integration • In FY18, Marksans commissioned a state-of-the-art R&D center at Navi Mumbai, apart from one in Goa • The new R&
Slide 24: Operational review and financials
Operational review and financials ©2019 – Marksans Pharma Limited, All Rights Reserved. 24
Slide 25: Consolidated revenue crossed INR 1000 Cr. in FY19
Consolidated revenue crossed INR 1000 Cr. in FY19 Topline driven by key geographies Revenue (₹ Cr.) 13.9% • The revenue growth in FY19 was driven by FY19 1,004.7 increasing market share in the US & North American region CAGR FY18 913.1 US Region: • Revenue from the US market grew 10.76% over FY18, F
Slide 26: Balance Sheet Trends
Balance Sheet Trends RoE RoCE Net Debt to EBITDA 14.8% 1.63 24.0% 9.1% 17.5% 0.89 11.4% 0.49 1.9% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 ©2019 – Marksans Pharma Limited, All Rights Reserved. 26
Slide 27: EBITDA margin increased during FY19
EBITDA margin increased by 418 bps during FY19 Steady growth in the profitability EBITDA (₹ Cr.) EBITDA Margin (%) • Gross margin improved from 42.68% during FY18 13.6% to 50.20% in FY19 due to better product mix in US FY19 136.8 62.5% 9.5% • The company reported a 418 bps increase in 6.7% FY18 86.9
Slide 28: Quarterly Review - Q1 FY20
Quarterly Review - Q1 FY20 ©2019 – Marksans Pharma Limited, All Rights Reserved. 28
Slide 29: Growth in Profitability
Growth in Profitability Revenue (₹ Cr.) 3.86% “We have had a satisfactory quarter in terms of revenue growth while our EBITDA margins continues to be at a Q1 FY20 247.21 healthy level. We will continue to focus on our strategy of niche products that have minimal competition to drive Q4 FY19 257.14 r
Slide 30: Business Review
Business Review Revenue by market (₹ Cr.) ▪ Company achieved revenue of Rs. 100.9 crores from Europe, UK US & North America Australia & NZ RoW Europe, UK: Formulation business as compared to Rs. 108.24 crores achieved during last year same period registering degrowth of 6.8% during the quarter, main
Slide 31: Financials
Financials PARTICULARS (₹ Cr.) Q1’20 Q4’19 Q1’19 FY19 FY18 Revenue from Operations 245.03 247.41 235.25 1,000.07 912.69 Other Income 2.18 9.73 3.23 4.62 8.47 Total Revenue 247.21 257.14 238.49 1,004.69 921.17 Material Consumption 124.28 122.76 115.89 498.00 523.13 Gross Profit 120.76 124.65 119.36 5
Slide 32: Investment Rationale
Investment Rationale ©2019 – Marksans Pharma Limited, All Rights Reserved. 32
Slide 33: Investment Rationale
▪ Company is widening its products portfolio in the complex and high- Investment margin generics segment ▪ The US, the UK and Australian are the key Marksans’ markets with all of Rationale them being now empowered with all regulatory approvals ▪ Marksans is among a handful of Indian players with a p
Slide 34: Corporate Office
Corporate Office: 11th Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Mumbai 400 053. Maharashtra - India © 2019 Marksans Pharma Limited, All Rights Reserved. “Marksans Pharma” and The Marksans Pharma Logo are trademarks of Marksans Pharma Limited. In addition to Company d