Jb Chemicals & Pharmaceuticals Ltd. · NSE:JBCHEPHARM
Jb Chemicals & Pharmaceuticals — Q3 FY22 Earnings Presentation
26 slides from Jb Chemicals & Pharmaceuticals's earnings presentation, Feb 14, 2022
Slide 1: Investor Presentation cover letter to NSE
• J. B. CHEMICALS & PHARMACEUTICALS LIMITED el February 14, 2022 National Stock Exchange of India Limited Exchange Plaza, 5"" Floor, Plot No. C/1, G-Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Stock Symbol: JBCHEPHARM Dear Sir, Subject: Investor Presentation Enclosed please find the pr
Slide 2: Q3 & 9M FY22 Financial Results
Q3 & 9M FY22 FINANCIAL RESULTS February 14, 2022
Slide 3: 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 date of this
Slide 4: Company Overview; Q3 & 9M FY22 Financial Performance
Company Overview Q3 & 9M FY22 Financial Performance 3
Slide 5: Company Overview
¢ - oo! eS +/ ~ ° , J.B. CHEMICALS & : PHARMACEUTICALS LTD. Company Overview NX
Slide 6: Company at a glance: key facts
Years of operations with Brands among top 300 brands, 45 consistent track record across multiple businesses 5 contributing over 70% of domestic formulations revenues Global manufacturer of Regulated/semi-regulated 40+ markets of presence through direct operations and distributors Top 5 medicated/her
Slide 7: Financial track record and business-wise revenue
Revenue (INR cr) PAT (INR cr) EBITDA Margin (%) ROE (%) ROCE (%) 27.4% 42% 21.3% 18.6% 29% 15.4% 24% 2,043 1,643 1,775 15% 25% 1,413 19% 449 13% 139 194 272 10% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 6 Financial Year ends on 31st March Business-wise Revenue (INR crore) 86 24 17 63 224 165 9M FY22 F
Slide 8: Consistent Outperformance in Covered Markets
Among the fastest Leadership Brands have growing pharma position consistently companies in the covered recorded market Vs market growth market share in No of brands markets beating growth of 18 %* 5 molecule in Top 300 categories * MAT Dec 21 growth Increasing Contribution from Chronic Therapies (MA
Slide 9: International Formulations, APIs, CMO
Intl Formulations* CMO* APIs* Intl Formulations* CMO* APIs* 72 % 20 % 8% 75 % 18% 7% FY21 International 9M FY22 International Business Revenues 817 224 86 Business Revenues 668 165 63 INR 1,127 crore INR 896 crore * Contribution to international business * Contribution to international business Inte
Slide 10: Seven manufacturing facilities and global accreditations
Seven state-of-the-art manufacturing facilities in Western India Over 40 global regulatory accreditations US FDA EU – GMP HEALTH – Canada SAHPRA – South Africa MHRA – UK TGA – Australia MOH – Russia Producing a wide array of dosage forms 9
Slide 11: Q3 & 9M FY22 Financial Performance
Q3 & 9M FY22 Financial Performance 10
Slide 12: CEO Views on Q3 FY22
“Our performance in the third quarter reflects a strong business momentum in a macroeconomic environment that has continued to be challenging. Revenue growth in India saw positive traction from our renewed Go-To-Market model and product introductions resulting in JB maintaining its position as the f
Slide 13: Revenues and revenue split
Revenues (INR cr) o Despite the challenging operating environment, revenue momentum remained strong in the third quarter 23%** 1,800 • **Excluding the revenue which got deferred to Q3 FY21 1,514 from Q2 FY21 in the previous financial year, the sales growth for Q3 FY22 was 23% 548 10% 601 19% o Domes
Slide 14: EBITDA reconciliation
INR crore Q3 FY22 9M FY22 Revenue 601 1800 Reported EBITDA 128 419 Non Cash ESOP Cost 25 38 Included in Employee Benefits expense Operating EBITDA 153 457 (excluding ESOP Cost) Operating EBITDA Margin 25.5% 25.4% One time consultancy/advisory - 14 One-off expenditure recorded in Q2 FY22 services Adj
Slide 15: Operating EBITDA and Profit After Tax
Op. EBITDA* (INR cr) Margin (%) 31.2% 28.9% 25.5% 25.4% 26.2% 457 471 o Gross Margin profile remains steady at 66% in Q3 FY22 437 • Significant inflation witnessed in API prices, managed through cost optimization initiatives and price increases 171.0 153.0 o Operating costs are now at normalized lev
Slide 16: Domestic Formulations performance
o As per IQVIA, JB was the fastest growing company among the Domestic Formulations* (INR cr) top 30 companies for CY 2021 • MAT Dec 2021: JB grew at 27% vs market growth of 18% 887 20 % 32 % • Oct - Dec 2021: JB grew at 27% vs market growth of 10% 671 o Re-aligned Go-To-Market model continues to del
Slide 17: International Business performance
International Business** (INR cr) o International business witnessed steady revival except for the US business 9% • South Africa continues to record growth in both public and 3% 820 896 private markets. • Russia/CIS region delivered strong growth for Q3 FY 22 306 315 • CMO business performed well du
Slide 18: Profit and loss statement
Particulars (In INR Cr.) Q3 FY22 Q3 FY21 YoY Growth 9M FY22 9M FY21 YoY Growth Sales (Net) 593 539 10% 1782 1491 20% Other Operating Income 8 9 -11% 18 23 -22% Revenue from Operations 601 548 10% 1800 1514 19% Cost of Goods Sold 206 187 10% 630 507 24% Gross Profit 395 361 9% 1170 1007 16% Gross Pro
Slide 19: Highlights Q3 FY22
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Slide 20: Company growth vs peers, MAT Dec'21
Companies (MAT Dec’21 data) MAT Dec’21 Value (Crs) %MS %Growth IPM 181634 100 18.1 J B Chemicals 1269.0 0.7 27.4 Alkem 7027.5 3.9 26.6 Aristo Pharma 5328.8 2.9 26.3 Emcure 3898.5 2.2 25.7 Glenmark Pharma 4372.3 2.4 25.2 Dr Reddy’s Labs 5243.2 2.9 23.1 Macleods Pharma 5730.5 3.2 22.4 Mankind 7732.1 4
Slide 21: Acquisition of Brands & Related Assets from Sanzyme Private Limited
Acquisition of Brands & Related Assets from Sanzyme Private Limited 20
Slide 22: Transaction Overview and Brands Overview
Transaction • Acquisition of brands and related assets from Sanzyme Private Limited in the probiotics, therapeutic Overview nutraceuticals and reproductive health market • Sanzyme is a leading player in the probiotics and hormones segments • Flagship brand “SPORLAC” is one of the leading probiotic b
Slide 23: Acquisition consideration and rationale
• JB paid a consideration of ~INR 628 crore* upon successful closing of the transaction • The transaction was closed in the first week of Feb 2022 • JB funded the acquisition through internal accruals • As of September 30, 2021 JBCPL had ~INR 741 crore of cash on its Balance Sheet • The acquisition
Slide 24: Sanzyme overview and brand portfolio
Overview Brands Portfolio Sporlac Division • Sanzyme is engaged in the manufacturing of speciality • 3rd largest probiotics brand in India probiotics formulations and infertility management • today3 Wide range of indications like diarrhea, IBS/IBD2, immunity building, dental products Sporlac DS Tabl
Slide 25: High growth market, attractive set of brands
• Focused on high growth probiotics Multiple levers available with High growth market and reproductive health market JBCPL to accelerate next phase of growth • Leadership position in operating categories Lifecycle management of • Highly scalable and go to brands portfolio with existing brands, lever
Slide 26: For further information, please contact
J.B. Chemicals and Pharmaceuticals Limited (JBCPL) For further information, please contact: (BSE: 506943 | NSE: JBCHEPHARM | ISIN: INE572A01028), established in 1976, is one of the fastest growing pharmaceutical companies in India Lakshay Kataria, Chief Financial Officer and a leading player in the
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