Q2 FY2018 Earnings Presentation Providing Affordable and Innovative medicines for healthier lives
Highlights Q2 FY2018 vs. Q2 FY2017 Management Perspective “We are pleased to report an improved financial performance during o Net Revenue of Rs. 926 million the quarter primarily on account of increasing export sales and restored demand from the domestic market. Our profitability o EBITDA of Rs. 184 million, up 23.1% improved significantly as a result of normalized impact of GST. ▪ EBITDA margin of 19.9%, up 80 bps As a testimony to our in-house R&D capabilities we have recently o PBT of Rs. 151 million, up 27.0% received a patent for an anti-malarial drug. We are expecting meaningful contribution to the revenue from exports after the ▪ PBT margin of 16.3%, increased 113 bps introduction of this drug in the African market. o PAT of Rs. 113 million, Up 27.9% Going forward, we are very optimistic about our business outlook supported by a strong export order book. Our investment in the USFDA ▪ PAT margin of 12.2%, up 93 bps lab and a new plant for antibiotics to cater to the domestic and regulated markets are expected to contribute to the growth of the o Total Debt of Rs. 503 million Company in the near term. ” ▪ Total Debt / Equity of 0.24x and Net Debt to LTM EBITDA of 1.01x Mr. Mahendra G. Patel, Managing Director 2
Performance Overview Consolidated Financial Performance Q2 y-o-y Q1 q-o-q Particulars (Rs. mn) FY2018 FY2017 Growth (%) FY2018 Growth (%) Net Revenue 926 784 18.2% 1,531 (39.5)% EBITDA 184 150 23.1% 99 86.9% Margin (%) 19.9% 19.1% 6.4% PBT 151 119 27.0% 69 120.1% Margin (%) 16.3% 15.2% 4.5% Profit After Tax (PAT) 113 88 27.9% 49 130.2% Margin (%) 12.2% 11.3% 3.2% Basic EPS (Rs.) 5.65 5.42 4.2% 2.46 129.7% Note: Financials are as per IND-AS 3
Performance Overview Revenue Breakup General Anti Infectives 1.1% 3.2% 1.2% 2.2% Musculo-Skeletal System 19.4% Therapeutic Area 24.5% 11.7% Respiratory Systems 26.1% 0.1% Parasitology 0.5% 2.5% Alimentary Tract and Metabolism Q2 FY2018 2.9% Q2 FY2017 Genito Urinary System and Sex Hormones 19.5% Cardiovascular System 7.2% 11.2% Blood and Blood Forming Organs 17.0% 8.3% Central Nervous System 5.2% 20.2% 16.2% Others 37.6% Geography 37.9% International Q2 FY2018 Q2 FY2017 Domestic 62.4% 62.1% 4
Performance Trend Net Revenue (Rs. million) and Y-o-Y Growth (%) Q2 FY2018 Highlights (Y-o-Y) 65.2% 18.2% o Revenue growth supported by increasing (6.9)% (17.8)% export sales and restored demand from (31.9)% domestic market 784 735 1,196 1,531 926 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 o Profitability improved on the account of EBITDA (Rs. million) and Margin (%) normalized impact of GST 19.1% 19.9% 16.0% 6.4% 4.2% 150 118 50 99 184 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 PAT (Rs. million) and Margin (%) 12.2% 11.3% 8.8% 3.2% 0.8% 88 65 10 49 113 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 5 Note: Financials for Q2 FY2017, Q1 FY2018 and Q2 FY2018 are as per IND-AS
Performance Trend Net Debt / LTM EBITDA Total Debt / Net Worth 1.1x 1.0x 1.0x 0.4x 0.8x 0.3x 0.7x 0.3x 0.3x 0.2x Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 ROCE 1 RONW 2 23.8% 21.6% 19.1% 17.7% 16.7% 14.6% 14.9% 14.1% 11.2% 10.8% Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Financials for Q2 FY2017, Q1 FY2018 and Q2 FY2018 are as per IND-AS. Q2 FY2018 balance sheet numbers are as are as per IND-AS Note: 6 1. ROCE calculated as LTM EBIT/ Capital Employed 2. RONW calculated as LTM Net Profit/ Net Worth
Leverage Profile (Rs. million) Sep 30 th , 2017 Long Term Debt 141 Credit Rating Short Term Debt 362 o The Company’s debt facilities have been assigned the following ratings by ICRA Total Debt 503 ▪ Long term bank facilities: A- Less: Cash & Cash Equivalents 88 ▪ Short term bank facilities: A2+ Net Debt / (Net Cash) 415 Net Worth 2,119 Note Q2 FY2018 balance sheet numbers are as are as per IND-AS 7
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 Presence in 4 Patents Granted 1,000 Registered Dossiers 60+ 25 25 Patents Applications 550 Ongoing Applications Countries States across India 43 rd 300+ 15+ 650 Field Staff Rank in AIOCD Formulations Developed Therapeutic Areas June 2017 in covered markets 30+ 500+ 22 C&F Agents 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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