Slide 1: Cover letter to stock exchanges
April 27, 2023 To To The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai – 400001 Mumbai – 400 051 Code: 540222 Code: LAURUSLABS De
Slide 2: Full-Year 2023 Financial Results and Business Update
Full-Year 2023 Financial Results and Business Update April 27 , 2023
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that constitute “forward looking statements” including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. W
Slide 4: Agenda
Agenda 1 Full Year 2023 Corporate Overview 2 Financial Overview 3 Business Review & Strategy 4 Outlook 3 Laurus Q4 & Full Year FY2023 Investor Presentation | April 27, 2023
Slide 5: Successful FY 2023 confirms robust business model
Successful FY 2023 confirms robust business model Financial Results Setting strong base for future growth* ESG-Ratings* ₹ Successful execution of large purchase order with Big Pharma Won new projects from few big pharma. LL’s visibility ₹ 6,041 Cr enhanced to win more business from global client
Slide 6: Service Platform Manufacturing & Quality
Harnessing operational excellence Across market segment Value Chain Discovery Development Manufacturing Packaging Marketing >> Offers Integrated approach 6,500+ employees worldwide 6 global regulatory agencies 10 production facilities & 1 R&D site Manufacturing & Quality 940+ quality audits 2,300+ s
Slide 7: Our Business outcome – delivering strong growth momentum across divisions
Our Business outcome – delivering strong growth momentum across divisions % of Revenues CAGR FY18-23 Our Global Footprints* 1 API 43% 7% 12% 2 CDMO 36% 71% 40% North America Net Revenues Europe ₹ 6,041 Cr 19% 1 3 FDF 114% ROW 48% 2 4 BIO 2% 47% * Based on Geographical location of the Customer 1 Base
Slide 8: FY 2023: Updated Guidance achieved and Drivers
FY 2023: Updated Guidance achieved and Drivers Revenue growth and margins were healthy FY 2023 target FY 2023 Drivers Pipeline progress and strong commercial execution within CDMO Strong double digit CMO projects ramp-up in key markets Revenues growth +22% ARV pricing impact, Weak tender procu
Slide 9: Broad and Diversified underlying business growth
Broad and Diversified underlying business growth Diversification of Laurus business + 24% CAGR 125 FY 18 FY 23 ₹ 2,056 Cr ₹ 6,041 Cr [₹ Crores] 1972 2% 6,041 402 36% 37% 744 742 ARV 7% 73% 18% 2,056 ARV API (Onco+Others) FDF (ex-ARV) CDMO Bio FY 18 ARV API FDF (ex-ARV) CDMO BIO ^ FY 23 (Onco+Others)
Slide 10: ARV business impact Pricing led – Countermeasures
ARV business impact Pricing led – Countermeasures to stablise business on track Well positioned to stabilize ARV sales amidst Due to the recent and unexpected volatility in ARV market, we decided to provide better ongoing challenges insight on our Readiness around stabilizing ARV business and retain
Slide 11: Growth Capex Projects update
Growth Capex Projects update New Capacities brought on line in FY23 Expected to come on line in FY24 Future Capex CDMO, VTZ^ Animal Health FDF, VTZ (LSPL-U2)- Dedicated development and Expansion of small molecules DP capabilities manufacturing facility – online from H2 at U2 – by 4 billion unit annu
Slide 12: Delivering on existing Capex projects to support Long-Term growth
Delivering on existing Capex projects to support Long-Term growth Capex investment CDMO facility status (AH1 & R&D site2) Large part of Capex addition between FY22-23 [₹ Crores] 1 (mainly FDF & API division) is under ramp up phase; Optimal utilization by FY25 % Sales 19% 16% 990 Mar’23 Mar’23 950 2
Slide 13: Commercial Capacity Progress
Commercial Capacity Progress Reactor Volumes Drug Product Capacity +2,842 7,480 Reactor Capacity (KL) Oral Solids (billion) 10 +2,768 4,638 +1,650 5 1,870 2 220 FY11-16 FY16-21 FY23 FY06-11 FY11-16 FY16-21 FY23 Uniquely positioned to meet growing global demand for DS and DP projects 12 Laurus Q4 & F
Slide 14: Good progress on Emerging CAR-T technology
Good progress on Emerging CAR-T technology GMP CAR-T cell therapy facility (Navi-Mumbai) Our strategic collaboration with CGT platform Co. ImmunoACT making good progress Our investment supported establishing GMP facility for manufacturing CAR-T treatment in Navi Mumbai. Further we continue to enha
Slide 15: Bio Update – Access to precision fermentation & biotechnology know-how
Bio Update – Access to precision fermentation & biotechnology know-how Accelerated growth in Bio-portfolio Advantage created since acquisition Sales Reduced our Acq. Multiple 2.7x Leveraged LL’s Global Customer base for AOF and CDMO offerings Enhance technical expertise in enzymes and bio- catal
Slide 16: Strengthening R&D platform
Strengthening R&D platform Green and Semi-Synthetic Technology Demonstrated enzymatic reaction both at lab and at commercial scale successfully 2300+ Developing novel enzymes and biotransformation tech 1/3rd of total workforce into R&D, Quality and Regulatory Implementation of Green Catalyst p
Slide 17: Enabling Customers with Integrated manufacturing capabilities
Enabling Customers with Integrated manufacturing capabilities Visakhapatnam Hyderabad Bangalore U1 U3 U5 LSPL U1 R1 R2 API CDMO API CDMO^ API CDMO API Intermediates Bio-Ingredients Bio-Ingredients 334 R1 297 R 51 R 42 R + 3 AGR2 31 R 5 Fermenters 4 Fermenters 1,240 KL 2,341 KL 151 KL 139 KL 81 KL 10
Slide 18: Strong commitment to ESG practices
Strong commitment to ESG practices ESG Focus on UN SDG Priorities Implementing Sustainability Management across key Sites and Invested into Green Chemistry Platforms Sustainability Technologies Bio-enzyme catalysis Continuous Flow Chemistry Recognition from ESG Rating agencies Consecutive “BBB
Slide 19: Financial Overview
2. Financial Overview 18 Laurus Q4 & Full Year FY2023 Investor Presentation | April 27, 2023
Slide 20: FY 2023 - Strong Operational results
FY 2023 - Strong Operational results Strong business fundamentals delivers robust Revenues growth FY23 Consolidated Financials Comments [₹Crore] FY23 FY22 Y-o-Y Delivers on updated guidance; with strong 22% growth in Revenues at ₹ 6,041 Revenues 6,041 4,936 22% Cr, and EBITDA of ₹ 1,594 Cr resulti
Slide 21: FY23 – Business performance
FY23 – Business performance Strong growth led by Non-ARV and CDMO segment FY23 Segment Performance Comments [₹ Crore] FY23 FY22 Y-o-Y Formulation (FDF) Declined by 39% due to less procurement from Global agencies and adverse pricing. FDF 1,140 1,880 -39% However, ARV sales continues to recover aga
Slide 22: FY 2023 – Financial Position
FY 2023 – Financial Position Strong balance sheet to support growth investments FY23 Balance sheet Increase in net fixed assets [₹Crore] FY23 FY22 Y-o-Y Increase mainly in property, plant and equipment towards capacity addition Net Fixed assets (incl. CWIP) 3,700 3,209 +491 API and FDF business Go
Slide 23: Summary Quarterly Performance
Summary Quarterly Performance Revenues EBITDA & Margins % [₹ Cr] [₹ Cr] 700 38.0% 31.3% 28.9% 29.5% 28.5% 1,576 600 28.2% 27.9% 33.0% 1,539 1,545 26.1% 28.0% 1,425 1,381 500 20.8% 23.0% 1,279 400 454 449 1,203 400 398 404 18.0% 348 300 13.0% 1,029 200 290 287 8.0% 100 3.0% 0 -2.0% 1Q 2Q 3Q 4Q 1Q Q2
Slide 24: Financial Performance 4Q/FY23
Financial Performance 4Q/FY23 Comments 4Q/FY23 Consolidated Financials Revenues: down 3% YoY due to lower sales particularly in CDMO-Synthesis [₹Crore] 3Q/FY23 4Q/FY23 4Q/FY22 Y-o-Y Q-o-Q and ARVs FDF Revenues 1,545 1,381 1,425 -3% -11% Sequential recovery in ARVs FDF is in line though pricing r
Slide 25: Business review & Strategy
3. Business review & Strategy 24 Laurus Q4 & Full Year FY2023 Investor Presentation | April 27, 2023
Slide 26: Business Performance 4Q/FY23
Business Performance 4Q/FY23 4Q/FY23 Segment Performance Comments [₹ Crore] 3Q/FY23 4Q/FY23 4Q/FY22 Y-o-Y Q-o-Q Formulation (FDF): Sequential recovery in-line, however YoY FDF 249 393 491 -20% 58% declined 20% due to overall softness in ARV demand/weak price. APIs 632 714 539 32% 13% Developed mar
Slide 27: Generic FDF
Generic FDF Continues to recover against Q2 lows Revenue Growth Global Filings 1,880 [₹ Cr] ROW 42 18 60 Y-o-Y ▼ 20% 1,140 Q-o-Q ▲ 58% Canada 13 7 20 Approved Pending 491 EU 12 3 15 349 393 249 149 US 26 11 37 FY22 FY23 4Q 1Q 2Q 3Q 4Q FY22 FY23 FY23 FY23 FY23 * Includes 12 Tentative approvals in US
Slide 28: Generic APIs
Generic APIs Strong and All rounded growth; supported by continued CMO opportunities Revenue Growth API Sales mix 2,700 [₹ Cr] 13% 11% 8% 12% 18% Y-o-Y ▲ 32% 2,039 24% 33% 29% 32% Q-o-Q ▲ 13% 33% Onco API Other API 680 714 65% 59% 59% ARV API 539 583 632 55% 49% FY22 FY23 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q
Slide 29: CDMO – Synthesis
CDMO – Synthesis Accelerated growth on the back of Solid scientific and commercial execution Maintaining strong growth momentum in Baseline projects Successful project execution with Top MNC at incredible [₹ Cr] speed and scale in recent years have further Enhanced 2,167 Laurus Lab’s visibility of m
Slide 30: CDMO - Synthesis
CDMO - Synthesis Underlying demand trend in the Baseline projects stays robust Comments Revenue Growth Q4 Revenues decline due to PO supplies in the base [₹ Cr] year and completion of PO related material supplies 720 Y-o-Y ▼ 37% 642 in Dec’22 577 Q-o-Q ▼ 64% Baseline projects continue to acceler
Slide 31: Laurus Bio - Bio business
Laurus Bio - Bio business Rebound; new capacities in ramp-up phase Revenue Growth Comments [₹ Cr] Delivered solid recovery with +31% YoY growth and sequential +109% Y-o-Y ▲ 31% growth in Q4 sales of ₹ 46 cr. Overall FY23 grew +25% 125 Q-o-Q ▲ 109% 100 Driven by unprecedented growth in the CDMO b
Slide 32: R&D focus – strong product pipeline
R&D focus – strong product pipeline US/EU pipeline by Addressable market R&D spent & Filing trend US Filings by Therapy Mix $ 48 bn 500 54 60 61 73 79 DMFs 10% Para IV: 16 450 14% FTFs: 11 19 26 27 31 37 ANDAs 400 55% 350 7.2% 5.7% 3.8% 4.1% 3.5% 8% Non-ARV 300 $ 26bn 250 211 6% Total Filed 202 8% 5
Slide 33: Robust Regulatory and Quality Foundation
Robust Regulatory and Quality Foundation Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Facility Regulatory Certifications Year Last US FDA – audits (since 54 started Inspection status Total Regulatory Audits inception) 940+ 890+ Kilo Lab – USFDA, TGA, KFDA, PMDA, 43 Quality au
Slide 34: Outlook
4. Outlook 33 Laurus Q4 & Full Year FY2023 Investor Presentation | April 27, 2023
Slide 35: Future Growth strategies to drive sustainable growth
Future Growth strategies to drive sustainable growth Build a bigger CDMO and CMO service business and capitalise on diversification of 1 Outsourcing and Dual souring trend Leveraging Comprehensive capabilities and Technology links to further enhance Co 2 positioning and fully capture cross business
Slide 36: FY 2024 : Sales outlook
FY 2024 : Sales outlook Sales drivers CDMO: Revenue expansion of base pipeline projects and 2H Animal health contract supplies kick-off Generics1: Growth in existing and new CMO contracts (Diabetic & CV portfolio) across key markets, Key product approvals and better visibility in ARV business Bio: R
Slide 37: Highlights FY 2018-23 – Steady Improvement
Highlights FY 2018-23 – Steady Improvement Revenues EBITDA & Margins % [₹ Cr] 2000 37.0% 1800 32.0% 33% 26% 6,041 1600 29% 1573 1,594 27.0% 1400 4,814 4,936 1,436 1200 22.0% 1000 17.0% 2,832 800 20% 12.0% 2,056 2,292 600 21% 16% 400 570 7.0% 442 371 200 2.0% FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 F
Slide 38: Our Recognitions
Our Recognitions OSH India Award – 2022 under the category Health and Safety Initiatives – Unit-4 CII Industrial Safety Excellence Award 2022 in recognition of Best EHS Innovative practices for Unit-6 Fortune India – Featured in Best CEOs of Year 2022 AIMA Award - Emerging Business Leader of
Slide 39: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate Structure • All are 100% Subsidiaries except Laurus Bio (Basic : 76.60%, Diluted : 74.37% ) and ImmunoACT Fully paid (Basic: 27.57%, Diluted 26.62%) Laurus Labs Limited Based on paid up capital subscription India Sriam Labs Pvt Laurus Holdings L
Slide 40: Conference Call Details
Conference Call Details Laurus Labs Results Conference Call to be held on Thursday, 27th April 2023 at 5:00 PM IST Dial – In – Details Universal Dial-In +91 22 6280 1342 Click below to Express Join with India Local access Number +91 22 7115 8243 Diamond Pass Singapore 800 101 2045 Click here to regi
Slide 41: About Laurus Labs
About Laurus Labs Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company with an aim to improve the quality of life for millions around the world. We have a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, on