Investor Presentation www.ajantapharma.com 1 BSE Symbol : AJANTAPH Code: 532331 NSE Symbol : AJANTPHARM ISIN: INE031B01031
Safe Harbour Statement This presentation may include certain forward looking statements, based on current expectations, forecasts and assumptions within the meaning of applicable laws and regulations. They are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. The Company disclaims any obligation to revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. 2
Index 1. Global Presence 2. India Branded Generics 3. Emerging Markets 4. Regulated Markets 5. Infrastructure 6. Financial Highlights 3
Global Presence USA West Asia (3 Countries) CIS (6 Countries) Latin America (4 Countries) South East Asia (3 Countries) India Africa (19 Countries) 4
India Branded Generics 5
Therapy Focus Dermatology Ophthalmology Cardiology Others MR Strength 2,500 6
India Sales Q4 FY 14 Momentum Continues FY14 Sales Rs. 95 Cr (FY13 Rs. 71 Cr) Growth 33% 30 26% 48% 26 25 47% 24 18% 20 20 19 18 18 Rs. Cr 15 13 15 19% 10 6 7 5 0 Ophthalmology Dermatology Cardiology Institution Others Q4 FY'13 Q4 FY'14 7 Source: Company
India Sales FY14 Excellent Growth FY14 Sales Rs. 385 Cr (FY13 Rs. 292 Cr) Growth 32% 120 26% 45% 100 32% 100 104 Rs. Cr 80 60 64 85 79 72 54 66 24% 32% 40 20 23 30 0 Ophthalmology Dermatology Cardiology Institution Others FY'13 FY'14 8 Source: Company
Within Segments Ajanta Way Ahead 45% 40% 35% 36% 40% 41% 30% 25% 20% 19% 18% 15% 10% 10% 10% 12% 5% 0% Pharma Market Dermatology Cardiology Ophthalmology Source: IMS, MAT March 14 IPM Ajanta Pharma 9
Indian Pharmaceutical Market (IPM) v/s Ajanta Growth 40% 35% 38% 36% 30% 29% 25% 20% 15% 15% 10% 10% 10% 5% 0% IPM IPM Indian Pharmaceutical Market, Source: IMS Mar-12 Mar-13 Mar-14 Ajanta Pharma 10
Ajanta Branded Generics Sales Evolution 350 323 300 250 240 200 180 Rs. Cr 150 135 109 100 88 50 17 30 49 66-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11 Source: Company
IPM Ajanta Improves Rankings Further Segment IMS MAT Mar 14 IMS MAT Mar 13 IMS MAT Mar 05 Ophthalmology 5 5 28 Dermatology 13 15 98 Cardiology 24 28 38 Ajanta Pharma 39 45 88 Source: IMS 12
IPM Leading Brands, Gaining Ground Brand Value (Rs. Cr) IMS MAT Mar 14 Growth over Previous Year Segment Melacare Range 53 43% Derma Met-XL Range 51 24% Cardio Atorfit Range 32 39% Cardio Softdrops Range 11 83% Ophthal Apdrops Range 9 23% Ophthal Rosufit Range 8 233% Cardio Feburic Range 8 43% Ortho 13 Source: IMS
Product Profile Many First To Market Segment Total No. of Products as on today No. of Products First Time in Market (last 9 yrs) Ophthalmology 54 48 Cardiology 27 10 Dermatology 48 34 Others 31 27 Total 160 119 14 Source: Company
Ajanta s Brands in Top 100 within Segments Respective Segment No. of Brands in top 100 in respective segment No. of Brands enjoying leadership ( Among Top 3) in respective segment Ophthalmology 7 17 Cardiology 2 6 Dermatology 1 16 Source: Company 15
New Product Launches in India Cardio Cardio Derma Derma Ophthal Ophthal Others Others Ophthal FY14 new launches 24 (First to market 9) 16
Emerging Markets 17
Emerging Markets Brand leadership in many markets 29% Growth in FY 14 & 16% in Q4 FY 14 450 strong field force in 25+ countries Country specific brand portfolio Expertise in product registrations Fastest growing company in Philippines & Franco Africa Ranked 6 th in Franco & 35 th in Philippines (IMS Dec 13) 18
Emerging Markets Q4 Revenue Break-up (Rs. Cr.) 120 28% 10% 105 Region Q4 FY14 Q4 FY13 Growth 100 96 95 Africa 96 75 28% Asia 105 95 10% 80 60 75 Latam 5 8-78% 40 Total 206 178 16% 20 8 5-78% 0 Africa Asia Latam 19 Q4 FY'13 Q4 FY'14
Emerging Markets FY14 Revenue Break-up (Rs. Cr.) 400 35% 368 350 30% Region FY14 FY13 Growth 300 272 311 Africa 368 272 35% 250 239 Asia 311 239 30% Latam 16 26-36% Rs. Cr 200 150 Total 695 537 29% 100 50 26-36% 16 0 Africa Asia Latam 20 FY'13 FY'14
New Product Launches Emerging Markets Region FY 14 Africa 10 Asia 20 Latin America 2 21
Emerging Markets Building Brands Region No. of Brands Registered No. of Brands under Registration Field Force Strength Major Segments Africa 968 915 206 Antibiotic, Anti-Malaria, Ortho Asia 361 350 244 Antibiotic, Derma, Ortho, OTC, Ophthal, Cardio, GI Latam 62 128 - Ophthal, MED, GI Total 1,391 1,393 450 22
Regulated Markets 23
Regulated Markets - USA Total ANDAs filed 23 Approved 2 (launched 1) Under approval 21 2-3 Approvals expected in FY 15 Own front end team launching Risperidone Filing target every year > 6 Expected market size of ANDA filed $1.5bn (post generic) Only solid dosage Mix of Para II, Para III, Para IV No FTFs 24
Infrastructure 25
Infrastructure Formulation Manufacturing 3 Facilities in Aurangabad (1 USFDA, UKMHRA, WHO Pre-Q, approved) Total Existing Capacities per annum on single shift basis o Tablets - 1500 Million o Capsules - 425 Million o Powders - 21 Million o Liquids - 8 Million 1 Facility at Mauritius 2 Facilities coming up in Gujarat API Manufacturing 1 Facility in Aurangabad (Captive mid size plant, 18 tons per annum) 26
Paithan Manufacturing Facility Approved by US FDA UK MHRA WHO Geneva (Pre-Q) MOH of Multiple Countries Dosage forms Tablets Capsules Powders 27
Other Manufacturing Facilities Chitegaon Tablets, Capsules, Oral Jelly Chikalthana Liquid & Oral solids Mauritius Tablet & Capsules API Multi-product facility Mid capacity plant 28
New Manufacturing Facilities Under Implementation Dahej Facility Tablet (1,740 Million per annum) Capsule (216 Million per annum) Powder (150 Million per annum) Capacities on single shift basis Commercialization Q1 FY 16 Facility in SEZ Investing Rs.220 Cr, already spent Rs.130 Cr 29 Savli Facility Target completion in Q3 FY16 Ophthal & Derma facility Domestic Tariff Area Investing Rs.180Cr, already spent Rs.15Cr
R&D The Catalyst for Growth Formulation, Many first to market products to credit Analytical & API Development Team of 350+ people Niche, complex & difficult to make products Enhancing capacities & capabilities Development of different dosage forms 30
R&D Excellent Capabilities Formulation, Expertise in innovative product development Extended Release Bi Layer Doubling the capacity in terms of Space Equipment Other infrastructure Excellent skill set in Drug Regulatory Affairs Dossiers filing Country specific requirements 31
Financial Highlights 32
Standalone Performance Q4 (Rs. Cr.) Particulars Q4 FY 14 Q4 FY 13 Growth Exports 206 178 16% % to Revenue 66% 71% Domestic 95 71 33% % to Revenue 31% 29% Other Oper. Income 10 0 % to Revenue 3% 0% Revenue 311 249 25% EBITDA 112 69 63% % to Revenue 36% 28% PBT 97 60 60% % to Revenue 31% 24% PAT 70 27 159% % to Revenue 23% 11% 33
Standalone Performance FY 2013-14 (Rs. Cr.) Particulars FY 14 FY 13 Growth Exports 695 537 29% % to Revenue 63% 64% Domestic 385 292 32% % to Revenue 35% 35% Other Oper. Income 30 11 181% % to Revenue 2% 1% Revenue 1110 839 32% EBITDA 346 210 65% % to Revenue 31% 25% PBT 313 164 91% % to Revenue 28% 19% PAT 221 101 118% % to Revenue 20% 12% 34
Consolidated Performance FY 2013-14 (Rs. Cr.) Particulars FY 14 FY 13 Growth Exports 793 629 29% % to Revenue 66% 68% Domestic 385 292 32% % to Revenue 32% 31% Other Oper. Income 30 11 173% % to Revenue 2% 1% Revenue 1208 931 30% EBITDA 369 225 64% % to Revenue 31% 24% PBT 330 177 87% % to Revenue 27% 19% PAT 234 112 109% % to Revenue 19% 12% 35
Consistent Track Record of Growth 22% CAGR Operating Income 42% CAGR PAT 1500 1250 Consolidated Operating Income & PAT (Rs. Cr.) Total Income Profit After Tax 1,208 234 250 200 1000 931 150 750 677 500 250 199 230 258 309 349 408 499 51 77 112 100 50 0 10 12 34 22 25 15 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 36 0
Consolidated Performance - FY 2013-14 EBITDA (Rs.Cr.) 369 PAT (Rs.Cr.) 234 224 80 99 147 34 51 77 112 2010 2011 2012 2013 2014 Earning Per Share (Rs.) 67 2010 2011 2012 2013 2014 Dividend (Rs. Cr.) 41 10 14 22 32 5 7 10 17 2010 2011 2012 2013 2014 37 2010 2011 2012 2013 2014
Consolidated Key Financial Indicators Rs. Particulars FY 09 FY 10 FY 11 FY 12 FY 13 FY14 EPS 7 10 14 22 32 67 Cash EPS 11 16 21 31 42 79 EBITDA per share 19 23 28 42 65 109 EBITDA margin 19% 19% 20% 22% 24% 31% PAT margin 7% 8% 10% 11% 12% 19% R & D Exp. (Rs. Cr) 16 20 25 37 37 50 R & D Exp. (% to Sales) 5% 5% 5% 5% 4% 4% * EPS of all years calculated post bonus shares 38
Consolidated Key Financial Indicators Particulars FY 09 FY 10 FY 11 FY 12 FY 13 FY14 Book value per share (Rs.) 45 53 65 85 112 169 Dividend/share (Rs.) (FV Rs.5) 1.25 1.75 2.50 3.75 6.25 10.00 RONW 16% 18% 22% 26% 28% 39% ROCE 13% 14% 18% 23% 38% 47% Dividend payout 13% 14% 13% 13% 15% 18% * Book Value of all years calculated post bonus shares 39
Consolidated Key Financial Indicators Particulars FY 10 FY 11 FY 12 FY 13 FY 14 Long term debt / Equity 0.77 0.36 0.35 0.19 0.12 Total debt/equity 1.23 0.83 0.67 0.32 0.22 Receivable days 87 76 77 60 63 Inventory days 107 83 92 59 48 Payable days 183 145 131 134 99 40
Growth Drivers India Building on existing brand equity in speciality segments New Segments to gain from enhanced brand equity Pipeline of new product launches Emerging Markets Gaining market share in existing territories Focus on further strengthening the brands New product launches continues Regulated Markets Increased pace of ANDA filings Expected approvals for 3-4 ANDAs in FY 15 Own sales & marketing team in place 41
For updates and company information please visit our website: www.ajantapharma.com For specific queries, contact: Rajeev Agarwal rajeev.agarwal@ajantapharma.com 022-66061377 Ajanta Pharma Limited Ajanta House, Charkop, Kandivli (W), Mumbai 400 067 42