Neuland Laboratories Ltd. · NSE:NEULANDLAB
Neuland Laboratories — Q3 FY2016 Earnings Presentation
24 slides from Neuland Laboratories's earnings presentation, February 2016
Slide 1: Investor Presentation | Q3FY16
Investor Presentation | Q3FY16 BSE CODE : 524558 | NSE SYMBOL : NEULANDLAB | BLOOMBERG: NLL:IN | REUTERS: NEUL.NS © 2015 – Neuland . All Rights Reserved | www.neulandlabs.com
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Investor Presentation | Neuland | www.neulandlabs.com
Investor Presentation | Neuland | www.neulandlabs.com 3
Slide 4: Company Overview
Company Overview 32+ 75+ 78 80+ 400+ 1000+ Years of Products Mn USD Countries of Regulatory Experienced excellence developed Revenue for business Filings professionals FY 15 including scientists • • • • • • Investor Presentation | Neuland | www.neulandlabs.com 4
Slide 5: Our Growth Story
Our Growth Story 2015 2013 Collaboration 10th USFDA with API Inspection Corporation, a 2009 company of Mitsubishi 1st NCE Chemicals approval 2004 PMDA US Office Japan 1997 Incorporated approval 1994 2007 First FDA 2010 Audit Japanese 1986 Neuland Subsidiary First Peptide initial Incorporated Collabo
Slide 6: Board and Key Management
Board and Key Management M.Sc. from Andhra University, Post Graduate Diploma in Technology – IIT Kharagpur Dr. D. R. Rao Ph.D. in Organic Chemistry -University of Notre Dame, U.S.A. Chairman and Managing Has held senior positions in R & D, production and quality assurance at Glaxo India Director & P
Slide 7: Board and Key Management
Board and Key Management Dr. Christopher M. Ph.D. in Organic Chemistry - Purdue University, U.S.A. Cimarusti Post Doctoral Research - Columbia University, U.S.A. Non-Executive Director Former Sr. Vice President, Pharmaceutical Development - Bristol-Myers Squibb Professor of International Management,
Slide 8: Our Strength
Our Strength • Preferred and reliable source of Active Pharmaceutical Ingredients (APIs) manufacturing, marketing and supply for several leading pharmaceutical companies worldwide • Features: • 2 US FDA and EU GMP compliant manufacturing facilities • Collective capacity: 480KL • 75 APIs across 10 di
Slide 9: Our Strength
Our Strength Our Custom Manufacturing Solutions (CMS) derives from its proven expertise in manufacturing at varied scales, a deep understanding of complex chemistry and manufacturing facilities compliant with the guidelines of the leading regulatory authorities and EHS. Services • Manufacturing API
Slide 10: Manufacturing Base
Manufacturing Base Bonthapally, Hyderabad Pashamylaram, Hyderabad Establishment • Started operations in 1986 • Started operations in 1994 Size and capacity • Built up area of 45,325 sq mtr. • Built up area of 36,800 sq mtr. • Plant capacity : 175.47 KL • Plant capacity : 300.10 KL Key Products • Ram
Slide 11: Business Mix
Business Mix % Revenue by Verticals % Revenue by Territory* ROW 11% CMS Japan CMS 4% 15% 15% Europe CMS 53% CMS 6% 3% API API North API API 85% America 85% 97% 94% 31% FY12 FY13 FY14 FY15 India 1% *-Rounded off, based on end market reach Investor Presentation | Neuland | www.neulandlabs.com 11
Slide 12: R&D Infrastructure
R&D Infrastructure R&D Facility, Hyderabad* Infrastructure: • 11 Development Labs • 60 Fume hoods • Analytical Lab • Kilo Lab dedicated for Scale up • Dedicated Labs for Peptides Establishment • Started operations in 2008 • Separate facility for D2 analogues Size and • Built up area of 3382.5 sq cap
Slide 13: Regulatory Filings and IPR
Regulatory Filings and IPR 48 25 ~400 19 5 11 144 DMFs with Filings with EUDMF filings CEPs Received Japanese DMF filings with ROW filings USFDA Health Canada across for different filed KFDA Korea including Germany, products Turkey, France, Mexico, Brazil Poland, Italy etc etc • ~650 filings world o
Slide 14: Industry structure and key drivers
Industry structure and key drivers API Industry’s Share in Global Contract Key Drivers Manufacturing Industry • Increased demand for biopharmaceutical manufacturing services • Complex and potent drug development will Finished Dosage Formulations, lead to higher demand of High Potency 33% Forecast Ac
Slide 15: Investor Presentation | Neuland | www.neulandlabs.com
Investor Presentation | Neuland | www.neulandlabs.com 15
Slide 16: Financials
Financials Financial Performance 500 450 464 466 465 100 Current Ratio(x) 398 1.2 400 0.9 0.9 0.8 0.8 300 50 200 2011 2012 2013 2014 2015 100 0 0 Debt to Equity(x) FY11 FY12 FY13 FY14 FY15 2.8 Figures in INR Cr Sales 398 450 464 466 465 2.5 EBITDA 50 48 61 73 67 1.9 1.5 Net Profit 5 2 14 27 16 1.2 R
Slide 17: Highlights – Q3/9MFY16
Highlights – Q3/9MFY16 9M Financial Performance • Total Operating income was Rs 3,716.7 mn for 9MFY16 as compared to Rs 3,317.4 mn in the 9MFY15, an increase of 12% • EBITDA stood at Rs 605.7 mn as compared to Rs 463.4 mn during the same period in the previous year(9MFY15), an increase of 31% • EBIT
Slide 18: Investor Presentation | Neuland | www.neulandlabs.com
Investor Presentation | Neuland | www.neulandlabs.com 18
Slide 19: Business Strategy
Business Strategy Exports higher volumes to Add new therapies Japan and other regulated and products markets having high margins Future Strategy Add more capacity and File DMFs, Patents and consolidate existing with grow intangibly. a profitable product basket Create an organization that results in
Slide 20: Focus on new products
Focus on new products 30% 15% 15% 2018 50% 2015 70% 20% Faster Growth Higher margins Increased with high volume with complex Penetration in APIs molecules APIs the CMS space Bring sustainability for future Investor Presentation | Neuland | www.neulandlabs.com 20
Slide 21: Future Product and market share mix
Future Product and market share mix 100% 100% World Market Share 2015 2018 90% 90% 80% 80% 70% 6 products > 20% MS 70% 18 products > 20% MS 3 products > 40% MS 9 products > 40% MS 60% 4 products > INR 20 Cr 60% 8 products > INR 20 Cr Total No. Of Products: 31 Total No. Of Products: 36 50% 50% 40% 40
Slide 22: Growth in CMS
Growth in CMS Develop Scale up Manufacture • 11 development labs • 2 kilo labs • 2 manufacturing sites • 60 fume hoods • cGMP pilot plant with two • 11 diverse production blocks • mg to gm scale production areas • Kg to ton scale • Analytical R&D • 0.5-50 kg batch size Scale the revenue growth in CM
Slide 23: Investment Rationale
Investment Rationale Horizontal Growth Continued expansion as preferred API source world wide Enhance manufacturing capacity to sustain high growth in APIs and CMS Increased number of new products with focus on market share on existing products through process improvement and capacity utilizat
Slide 24: For further information contact
For further information contact: Arpita Poola Ankit Gupta Neuland Labs Christensen IR +91 40 3021 1600 +91 22 4215 0210 arpita@Neulandlabs.com ankitgupta@christensenir.com
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