Q1 FY2018 Earnings Presentation Providing Affordable and Innovative medicines for healthier lives
Highlights Q1 FY2018 vs. Q1 FY2017 Management Perspective Performance of the Company during the quarter was impacted by o Net Revenue of Rs. 1,377 million the prevailing regulatory challenges and GST-led de stocking in the domestic market. Despite unfavorable industry scenario, we are o EBITDA of Rs. 99 million, down 47.1% pleased to report revenue growth of around 49%, which is mainly supported by General Anti Infectives and Parasitology segments. EBITDA margin of 7.2% However, our profitability was impacted by a transitional impact of o PBT of Rs. 69 million, down 54.6% GST which is expected to be normalized in H2 FY2018. Going forward, our new USFDA plant to cater to the domestic and PBT margin of 5.0% regulated markets, proposed new plant for antibiotics coupled o PAT of Rs. 49 million, down 57.1% with initiatives undertaken such as widening portfolio through product launches and enhancing geographic outreach will be the PAT margin of 3.6% key growth drivers in the near future. ” o Total Debt of Rs. 597 million Mr. Mahendra G. Patel, Managing Director Total Debt / Equity of 0.3x and Net Debt to LTM EBITDA of 1.2x 2
Performance Overview Consolidated Financial Performance Q1 y-o-y Particulars FY2018 FY2017 Growth (%) Net Revenue 1,377 927 48.5% EBITDA 99 186 (47.1)% Margin (%) 7.2% 20.1% PBT 69 151 (54.6)% Margin (%) 5.0% 16.3% Profit After Tax (PAT) 49 114 (57.1)% Margin (%) 3.6% 12.3% Basic EPS (Rs.) 2.45 6.99 (64.9)% Note: Financials for Q1 FY2017 and Q1 FY2018 are as per IND-AS 3
Performance Overview Revenue Breakup General Anti Infectives 1.8% 0.6% 0.9% 2.1% Respiratory Systems 17.9% Therapeutic Area 24.9% 14.0% 26.7% Parasitology 0.4% Alimentary Tract and Metabolism 1.3% 1.9% Musculo-Skeletal System 3.7% Q1 FY2018 Q1 FY2017 Genito Urinary System and Sex Hormones 18.6% Cardiovascular System 10.2% 13.5% Blood and Blood Forming Organs 16.5% Central Nervous System 12.1% 12.4% 14.2% 6.4% Others 32.5% Geography 40.2% International Q1 FY2018 Q1 FY2017 Domestic 59.8% 67.5% 4
Performance Trend Net Revenue (Rs. million) and Y-o-Y Growth (%) Q1 FY2018 Highlights (Y-o-Y) 48.5% o Revenue growth supported by increasing 22.5% (6.9)% demand from General Anti Infectives and (18.6)% (31.9)% Parasitology segments 927 777 735 1,196 1,377 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 o Profitability margins impacted by transitional EBITDA (Rs. million) and Margin (%) impact of GST 20.1% 18.7% 16.0% 7.2% 4.2% 186 145 118 50 99 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 PAT (Rs. million) and Margin (%) 12.3% 11.2% 8.8% 3.6% 0.8% 114 87 65 49 10 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 5 Note: Financials for Q1 FY2017 and Q1 FY2018 are as per IND-AS
Performance Trend Net Debt / LTM EBITDA Total Debt / Net Worth 0.5x 1.2x 0.4x 1.0x 1.0x 0.3x 0.3x 0.9x 0.3x 0.7x Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 ROCE 1 RONW 2 23.6% 18.5% 19.0% 22.1% 21.4% 16.6% 13.0% 16.1% 13.9% 10.7% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Financials for Q1 FY2017 and Q1 FY2018 are as per IND-AS Note: 1. ROCE calculated as LTM EBIT/ Capital Employed 6 2. RONW calculated as LTM Net Profit/ Net Worth
Leverage Profile (Rs. million) June 30 th , 2017 June 30 th , 2016 Long Term Debt 174 183 Credit Rating Short Term Debt 423 528 o The Company’s debt facilities have been assigned the following ratings by CRISIL Total Debt 597 711 Long term bank facilities: A- Less: Cash & Cash Equivalents 122 143 Short term bank facilities: A2+ Net Debt / (Net Cash) 475 568 Net Worth 1,964 1,547 7 Note: Financials for Q1 FY2017 and Q1 FY2018 are as per IND-AS
Recent Developments Delisting of Equity Shares from Ahmedabad Stock Exchange 1 • The Company applied for voluntary delisting from the Ahmedabad Stock Exchange Limited (ASEL) and was granted approval. The equity shares of the Company were delisted from ASEL w.e.f. 24 th November, 2016 Developed new NDDS formulation Ondansetron Oral Spray (Domi Up) for the first time in India 2 • Currently the Ondansetron formulation is available in the form of tablet, syrup and injectable. Lincoln Pharma has developed Ondansetron (Domi Up) as an oral spray which is first in India • Ondansetron Spray (Domi Up) is used in for travelling motion sickness, during Chemotherapy, pregnancy and ENT, Neurological and Cardiac surgeries • Indian Anti-emetic drug market is valued at Rs. 678 crores and Ondansetron has a potential market size of Rs. 303 Crores Launched Vaginal Spray for the first time in India 3 • Developed a new NDDS Micronized Progesterone Vaginal Spray unde the brand name ART-Luton • ART-Luton is used for the treatment of Luteal Phase Support in ART, dysmenorrhoea and premenstrual syndrome New Launches 4 • In FY2017, the Company launched 28 new products across therapeutic areas International Operations 5 • The Company has aggressively started the business in 13 Francophone African countries 8 • The Company has got many new products registration
Research & Development Research Facilities R&D Expenditure (Rs. mn) and as % of Sales 2.4% 2.0% 2.7% 88 1.6% 80 Senior Scientist 15 73 Junior Scientist 18 Analysts 18 34 Regulatory Personnel 12 Administrative Personnel 9 Others 6 FY14 FY15 FY16 FY17 Total 78 9
A Leading Pharmaceutical Company Research & Development Department Market Presence Presence in 4 Patents Granted 773 Registered Dossiers 15+ 60+ 25 Patents Applications 580 Ongoing Applications Therapeutic Areas Countries 44 th 300+ 550 Field Staff 22 C&F Agents Rank in AIOCD Formulations Developed July 2014 in covered markets 30+ 500+ 5,000 Stockiest Scientists SKUs 10
Key Milestones Received WHO – Becomes Public Covered 80% of all Developed & Launched Robust business growth in GMP for plant / Limited Company India Market 3 NDDS products domestic & international production unit from a Partnership markets 2016-17 2015-16 2014-15 2010-11 2001 2000 1997-98 1995-96 1990 1984-85 1979 1979 Started Started export to Domestic R&D Center started; Developed & Launch 3 products which are first time 11 Operations Tanzania and network across Export house launched 2 more in India. Entered in more (regulated) Mauritius nation certificate received NDDS products African and Latin American countries
Global Footprint Presence over 60 countries in Europe, Latin America, Africa, Asia Pacific and South East Asia; 22 states across India Jammu Uttaranchal Chandigarh Delhi Europe : Ambala Ghaziabad France Lucknow Guwahati Jaipur Patna Ranchi Ahmedabad Kolkata Indore Raipur Nagpur Cuttack Vijayawada Chennai Latin & Central America : Africa: Angola, Benin, Botswana, Asia: Afghanistan, Bhutan, Bangalore Bolivia, Chile, Costa Rica, El- Burkina Faso, Burundi, Cameroon, Cambodia, Fiji, Hong Kong, Salvador, Guatemala, Guyana, Congo, Ethiopia, Gabon, Ghana, Guinea, Iraq, Kazakhstan, Mongolia , Kochi Honduras, Jamaica, Panama, Ivory Coast, Kenya, Liberia, Madagascar, Myanmar, Nepal, Philippines, Peru, Suriname, Trinidad & Malawi, Mali, Matadi, Mozambique, Sri Lanka, Thailand, Vietnam Tobago, Venezuela, West Namibia, Niger, Nigeria, Rwanda, International Presence Indies Senegal, Seychelles, Sierra Leone, South C&F Agent Location in India Sudan, Sudan, Tanzania, Togo, Uganda, Yemen, Zambia, Zimbabwe, Zazibar 12
Best-in-Class Facilities Certifications: WHO-GMP Certified; ISO9001:2008 Certified R&D Center: Approved by Government of India; Team of 30 scientists for R&D Green Energy: Windmill project for captive consumption Dosage Forms Produced at Unit 1 Dosage Forms Produced at Unit 2 Description Annual Capacity Unit Description Size Annual Capacity Unit Tablet (Compression & Coating) 1,680,000,000 Tablets Liquid Ampoules 1 ml to 5 ml 60,000,000 Ampoules Total Packing (Strip + Blister) 1,680,000,000 Packs 10 ml 30,576,000 Ampoules Tablet (Granulation) 10,200,000 Kg Liquid Vials 2 ml to 10 ml 15,600,000 Vials Capsule (Filling) 360,000,000 Capsules 10 ml to 30 ml 15,600,000 Vials Dry Syrup (Filling) 6,000,000 Bottles Oral Liquids 60 ml to 100 ml 18,000,000 Bottles Ointment (Filling) 9,600,000 Tubes 150 ml to 200 ml 18,000,000 Bottles Ointment (Packing) 9,600,000 Packs Dry Powder Injection 100 mg 22,464,000 Vials 13
Wide Spectrum of Therapeutic Coverage Cough & Cold / Sterile Ophthalmic Dermatologist Gyneacologial Gastro Intestinal Anti Allergic / Anti- Eye Preparation Products Range asthmatics Drops/Ointment Anti-bacterial / Vitamins / Minerals Analgesic / Anti- Anti-diuretics/ Anti-malarial Anti-viral/ Anti- / Anti-oxidants pyretic Anti-hypertension fungal Anti-Psychotic / Phosphodiesterase Cardiac / Anti- Anti-Diarrhoeal / Anti-Convulsant Type 5 Inhibitor Anti-Diabetic Hypertensives / Anti-Spasmodic / /Anti-Depressant, and General Diuretic Laxative Otology Anesthetics 14
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