wockhardt limited direct row operations operations usa uk, ireland, france, switz. india mexico...
TRANSCRIPT
Wockhardt Limited
Investor Presentation By
Dr. Murtaza Khorakiwala Managing Director
Feb 2014
Safe Harbor Statement
• Except for historical information contained herein, statements in this communication, which include words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”, “potential”, “will pursue” and similar expressions or variations of such expressions may constitute “forward looking statements”. These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Wockhardt Limited does not undertake any obligation to update forward looking statements to reflect events or circumstances after the date thereof.
Investor Presentation Feb 2014 2
Introduction to Wockhardt Key Business Dynamics
ROW operations Wockhardt Direct operations
USA
UK, Ireland, France, Switz.
India
Mexico
Wockhardt Today
Investor Presentation Feb 2014 4
Direct Operations
in India, USA
and Europe
8600 Associates employed in 21
countries
UK Ireland
Wockhardt Today
Investor Presentation Feb 2014 5
12
Manufacturing Locations globally
Ankleshwar Daman (2 Plants)
Aurangabad (5 Plants)
Baddi
Chicago
Formulations APIs
9 sites in India
Wockhardt Today
Investor Presentation Feb 2014 6
3 R&D Centers
worldwide
USA / UK & India
Update on Recent Events
Regulatory Inspections
Update on Recent Events
Investor Presentation Feb 2014 9
Q3FY14 9MFY14
Total No. of Regulatory Inspections 6 17
+ve outcomes (with no or minor observations) 5 13
-ve outcomes (with critical / major observations) 1 4
Result Awaited 0 0
Q3FY14 / 9MFY14 – Regulatory Inspection Status
Chikalthana facility received an Import Alert from USFDA during the quarter. However, 5 products allowed to be manufactured.
Q3FY14 Results
Sales – Decline of 14% over Q3FY13
Investor Presentation Feb 2014 11
Decline of 14% in Q3FY14 over Q3FY13
Rs.crore 1,435
1,237
500
700
900
1,100
1,300
1,500
Q3-FY13 Q3-FY14
Sales
EBITDA – Declines by 56% over Q3FY13
Investor Presentation Feb 2014 12
Rs.crore
Declines by 56% in Q3FY14 over Q3FY13
545
241
0
100
200
300
400
500
600
Q3-FY13 Q3-FY14
EBITDA
Adj. PAT – Declines by 40%
Investor Presentation Feb 2014 13
Rs.crore
Declines by 40% in Q3FY14 over Q3FY13
410
250
0
100
200
300
400
500
Q3-FY13 Q3-FY14
Adj. PAT
Research – 9.2% of Sales
Investor Presentation Feb 2014 14
3.5%
5.7%
6.7%
7.7%
10.2%
9.2%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
FY11 FY12 FY13 Q1FY14 Q2FY14 Q3FY14
R&D % to Sales
9MFY14 Results
Sales – Decline of 8% over 9MFY13
Investor Presentation Feb 2014 16
Decline of 8% in 9MFY14 over 9MFY13
Rs.crore 4,124
3,792
1,500
2,000
2,500
3,000
3,500
4,000
4,500
9M-FY13 9M-FY14
Sales
EBITDA – Declines by 43% over 9MFY13
Investor Presentation Feb 2014 17
Declines by 43% in 9MFY14 over 9MFY13
Rs.crore 1,504
858
0
200
400
600
800
1,000
1,200
1,400
1,600
9M-FY13 9M-FY14
EBITDA
Adj. PAT – Declines by 40%
Investor Presentation Feb 2014 18
Declines by 40% in 9MFY14 over 9MFY13
Rs.crore 1,180
707
0
200
400
600
800
1,000
1,200
1,400
9M-FY13 9M-FY14
Adj. PAT
Key Financial Highlights
Investor Presentation Feb 2014 19
Net Debt to Equity now at 0.06 as against 0.36 as of 31st Mar 2013.
Free Cash Flow (before Capex) generation of over Rs.1,100 crores in 9MFY14.
Capital Expenditure of Rs.307 crores in 9MFY14.
R&D expenses at 9.2% of sales in Q3FY14 and at 9% of sales in 9MFY14.
US Business
Investor Presentation Feb 2014 20
• Declines by 30% (37% in $terms) over
Q3FY13.
• 7 ANDAs filed during 9MFY14.
• 53 ANDAs pending approval.
771 539 300
400
500
600
700
800
Q3-FY13 Q3-FY14
USA
Rs.
cr.
$141
$89
EU Operations UK Operations
• UK operation grows by 10% (Flat in £ terms) in Q3FY14.
Grows by 5% (remains flat in £ terms) in 9MFY14.
• 4 New products launched in 9MFY14.
• 3 largest generic company and 1st in Hospital segment
Investor Presentation Feb 2014 21
Ireland Operations
• Ireland grows by 24.7% (8% in € terms) over Q3FY14.
Declines by 16% (25% in € terms) over 9MFY13.
• Largest generic player with 27% market share.
• 1 new product launched in 9MFY14.
238 261 120
140
160
180
200
220
240
260
280
Q3-FY13 Q3-FY14
UK
Rs.
cr.
£ 27.4
£ 27.3
49 62 -
10
20
30
40
50
60
70
Q3-FY13 Q3-FY14
Ireland
Rs.
cr.
€ 7.06
€ 7.61
Emerging Markets • Emerging Markets (including India)
declined by 15% for Q3FY14. Declines by
21% for 9MFY14.
• India Business grew by 6% during Q3FY14
• 2 new products in Q3FY14 and 16 new
products launched in 9MFY14 in India.
• 2 new divisions launched in India.
• ROW operations declined by 15% during
the quarter and by 21% in 9MFY14..
Investor Presentation Feb 2014 22
324 328250
270
290
310
330
350
Q3-FY13 Q3-FY14
Emerging Markets
Rs.
cr.
Investor Presentation Feb 2014 23
For investor updates and communication please visit www.wockhardt.com
For Information please contact Tushar Mistry Tel.: +91 22 26596210 [email protected]