Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q1 FY2022 Earnings Presentation
32 slides from Laurus Labs's earnings presentation, Jul 29, 2021
Slide 1: Investors/Analysts Presentation cover letter
Laurus Labs Limited Corporate Office 2"d Floor. Serene Chambers. Road No. 7 Banjara Hills, Hyderabad- 50003~ . Telangana. India T +91 ~0 6659 ~333, 3980 ~333, 23~2 0500 I 501 LAURUS Labs F +91 ~0 6659 ~320 I 3980 ~320 Knowledge . Innovation . Excellence July 29, 2021 To To The Corporate Relations De
Slide 2: Q1 FY 2022 Financial Results and Business Update
Q1 FY 2022 Financial Results and Business Update 29 July, 2021
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 Financial Overview 2 Business review & Strategy 3 Outlook & Guidance 4 Appendix 3 Laurus Q1FY22 Investor Presentation | July 29, 2021
Slide 5: Financial Overview
Financial Overview 1 4 Laurus Q1FY22 Investor Presentation | July 29, 2021
Slide 6: Financial Performance 1Q/FY22
Financial Performance 1Q/FY22 Sustaining healthy growth Revenues ₹ 1,279 Cr ▲31% EBITDA ₹ 400 Cr ▲41% 1Q/FY22 Consolidated Financials Key Highlights [₹Crore] 1Q/FY22 1Q/FY21 Y-o-Y Q-o-Q Revenue from operations has grown 31.3% YoY. Growth driven by Revenues 1,279 974 31.3% -9.4% sustained strong mo
Slide 7: Summary Quarterly Performance
Summary Quarterly Performance Consistent delivery [₹ Cr] 1,412 21% 33% 34% 31% 20% 23% 29% 34% 1,289 1,279 1,139 477 974 433 379 400 839 712 730 284 193 140 150 EBITDA Revenues & Margins % 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY20 FY20 FY20 FY21 FY2
Slide 8: Business review & Strategy
Business review & Strategy 2 7 Laurus Q1FY22 Investor Presentation | July 29, 2021
Slide 9: Business Performance 1Q/FY22
Business Performance 1Q/FY22 FDF & Synthesis business tracking strong despite Covid-19 challenges 1Q/FY22 Segment Performance Key Highlights [₹ Crore] 1Q/FY22 1Q/FY21 Y-o-Y Q-o-Q Formulation (FDF): Strong growth at +48% YoY & 21% QoQ. Key FDF 521 352 48.0% 21.2% drivers demand in ARV segment for L
Slide 10: Generic FDF
Generic FDF Strong delivery across Core markets drives Mix improvement ▲ 48% Y-o-Y [₹ Cr] ▲ 21% Q-o-Q ROW 22 7 29 521 452 430 430 Canada 10 5 15 352 Revenue Approved Global Filings Growth Progress Pending EU 5 6 11 US * 18 10 28 1Q 2Q 3Q 4Q 1Q FY21 FY21 FY21 FY21 FY22 0 5 10 15 20 25 30 * Includes 9
Slide 11: Generic APIs
Generic APIs Demand normalization visible ▲ 5% Y-o-Y [₹ Cr] ARV API Other API Onco API ▼ 31% Q-o-Q ARV API Other API Onco API 14% 10% 15% 9% 8% 797 10% 9% 8% 11% 731 15% 14% 21% 22% 26% 14% 19% 21% 14% 26% 19% 571 549 522 Revenue API revenues Growth 78% 71% mix 64% 64% 66% 77% 75% 64% 66% 71% 4Q 1Q
Slide 12: CDMO - Synthesis
CDMO - Synthesis Accelerating our focus Operational [₹ Cr] Highlights ▲ 95% Y-o-Y ▲ 11% Q-o-Q 195 176 116 127 1 2 3 4 5 100 Revenue 50 4 4 100+ 550KL+ Growth Projects Commercial Big Pharma R&D FY22 end till date Projects Global Scientist Total 1Q 2Q 3Q 4Q 1Q Client Capacity FY21 FY21 FY21 FY21 FY22
Slide 13: Laurus Bio - Bio business
Laurus Bio - Bio business Benefit of capacity ramp-up to reflect from Q2 [₹ Cr] 14 180KL fermentation capacity partially commissioned in June’21 9* Acquiring additional land for creating Revenue 1MN liters fermentation capacity Growth Leveraging Parent’s existing Global Partnership and strong
Slide 14: R&D Focusing to create a Value Centric Portfolio
R&D Focusing to create a Value Centric Portfolio $ 37 bn 39 46 54 60 61 66 ◄ DMFs 500 10% R&D spend 3 9 19 26 27 28 ◄ US ANDA & Filing 400 trend (US/EU 7% 7% /Canada) 300 6% 80% 6% Non-ARV 184 6% 200 166 160 US/EU 134 114 4% 4% $ 11bn pipeline by ~15% Non-ARV 100 49 Addressable market 85% ARV 20% AR
Slide 15: Healthy Regulatory track with unwavering commitment to Quality
Healthy Regulatory track with unwavering commitment to Quality Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Start Last US FDA – Facility Regulatory Certifications audits (since Year Inspection status inception) Kilo Lab USFDA, TGA, KFDA, PMDA, – R&D ANVISA Brazil 2006 2016 –
Slide 16: Fundamentally - Diversified our Segment mix
Fundamentally - Diversified our Segment mix Further Intensifying the Transformation drive FY 2017 FY 2021 (IPO) (By Segment) Revenues: ₹ 1,905cr Revenues: ₹ 4,813cr Revenues CAGR: 21% Onco & Integrated Business Approach EBITDA CAGR: 32% Other API+, 16% to create value ARV api, 39% Synthesis, 11%
Slide 17: Manufacturing Infrastructure (1/2)
Manufacturing Infrastructure (1/2) Strong capabilities in Contract Manufacturing – a good fit to multiple strategic alliance Jawaharlal Nehru Pharma City, Visakhapatnam APIIC, Atchutapuram, Visakhapatnam 1 2 •FDF & API •API, CDMO - Synthesis • 6 bn Tablets/Capsules per year) • 328 reactors with 1,22
Slide 18: Manufacturing Infrastructure (2/2)
Manufacturing Infrastructure (2/2) IKP Knowledge Park, Genome Valley, Hyderabad Laurus Bio (facility acquired through Richcore) Bangalore Kilo R1 Lab •API, CDMO - Synthesis •Bio-Ingredients • 43 reactors and 4.3 KL capacity • Fermentation capacity of 10,750 Liters (2 reactors of • Key Approvals: USF
Slide 19: Capacity Progress
CAPEX Investments – An overview of on-Going Projects Re-investing to support Long term growth Expansion Type Division Location Status & Capacity Operational Timelines Brownfield Formulation Vizag Unit 2 - 4 billion units (New building) Completion by Mar 22 Brownfield Formulation Vizag Unit 2 - 1 bil
Slide 20: Laurus Vision and Our Values
Laurus Vision “To become a leading player in offering integrated solutions to global pharmaceutical needs in creating a healthier world” Our Values KNOWLEDGE I N N OVAT I O N EXCELLENCE CARE INTEGRITY 19 Laurus Q1FY22 Investor Presentation | July 29, 2021
Slide 21: Board of Directors
Board of Directors Strong Governance Standard from a diverse board Dr. M. Venu Gopala Rao Dr. Satyanarayana Chava Mr. V V Ravi Kumar Non-Executive Chairman & Independent Director Executive Director & Chief Executive Officer Executive Director & Chief Financial Officer Key Expertise: General Manageme
Slide 22: Key Management Team
Key Management Team Driven by credible expertise Dr. V Uma Maheswer Rao Mr. Srinivasa Rao S Mr. Krishna Chaitanya Chava Head – Chemical R&D Head – Manufacturing & Operations Head - Synthesis and Ingredient Key Expertise: Extensive experience in process R&D, Key Expertise: +27 years experience in pro
Slide 23: ESG Standards & Sustainability Strategy
ESG Standards & Sustainability Strategy 80 68 68 65 57 59 56 52 52 47 50 45 Strictly comply with the Environmental Protection Law 41 39 37 and other EHS regulations S&P global 31 CRISIL Ranking * Sustainability initiatives are accredited by multiple E S G Overall agencies including Ecovadis® & C
Slide 24: Outlook & Guidance
Outlook & Guidance 3 23 Laurus Q1FY22 Investor Presentation | July 29, 2021
Slide 25: Outlook FY2022 & Ahead
Outlook FY2022 & Ahead Business Moats Key Segment Outlook & Enablers 1 Renewed market share gains in ARV portfolio in LMIC Integrated Approach Market share growth in US launched products & Create differentiated generic pipeline for the Solid execution & Trust from Formulations developed mark
Slide 26: Laurus Priorities FY2022
Laurus Priorities FY2022 Accelerating action for value creation 1 Business Proactive portfolio de-risking, enhanced procurement and operational efficiency Integrating & leveraging Richcore acquisition Widen technology portfolio and access new market opportunities Strengthen position with Big
Slide 27: Appendix
Appendix 4 26 Laurus Q1FY22 Investor Presentation | July 29, 2021
Slide 28: 15 years of patience, diligence and perseverance
15 years of patience, diligence and perseverance Capabilities 2006-11 2011-16 2016-21 Pharmaceutical Company transformation ARV APIs API company company Team strength 883 2,266 4,808 No of Scientist at R&D 400+ 500+ 750+ Manufacturing Units 1 (FDA compliant) 2 (FDA) 8 (5 FDA) Reactor volume (KL) 220
Slide 29: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate All are 100% Subsidiaries except Laurus Structure Laurus Labs Limited Bio* India Laurus Synthesis Laurus Generics SA *Laurus Bio (earlier Sriam Labs Pvt Ltd Laurus Holdings Ltd Pvt. Ltd (PTY) Ltd Richcore) 74.4% ^ Laurus Synthesis Inc USA is ^La
Slide 30: Recognition from Industry
Recognition from Industry Great Place to Work Golden Peacock Award For the third consecutive time in a For Excellence in Corporate study conducted by the Great Governance 2020 Place to Work® Institute Most Promising company of India Pharma Leader Award Year 2021 Presented at the 6th edition of the A
Slide 31: Conference Call Details
Conference Call Details Results conference call on Friday July 30, 2021 at 11:00 AM IST Details of the conference call are as follows Location Dial-In Details Conference dial-in Universal Dial-In +91 22 6280 1148 India Local access Number +91 22 7115 8049 Available all over India Singapore 800 101 2
Slide 32: About Us
About Us Laurus Labs is a fully integrated pharmaceutical and biotechnology company, with a leadership position in generic Active Pharmaceutical Ingredients (APIs) and a major focus on anti-retroviral, Hepatitis C, and oncology drugs. We also develop and manufacture oral solid formulations, provide