Eris Lifesciences Ltd · NSE:ERIS

Eris Lifesciences — Q4 FY23 and FY23 Earnings Presentation

20 slides from Eris Lifesciences's earnings presentation, May 17, 2023

  1. Slide 1: Cover letter to stock exchanges: Investor Presentation

    Date: 17th May, 2023 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla Complex Mumbai- 400001 Bandra (E) Mumbai-400051 Security Code: 540596 Symbol: ERIS SUBJECT: INVESTOR PRESENTATION Dear Sir/Madam, Pursuant to the require

  2. Slide 2: Q4 FY23 and FY23 Investor Presentation

    Q4 FY 23 and FY 23 INVESTOR PRESENTATION 17th May 2023 1

  3. Slide 3: Financial and Business Highlights – Q4 FY23 and FY23

    FINANCIAL AND BUSINESS HIGHLIGHTS – Q4 FY 23 AND FY 23 Q4 FY 23 FY 23 INR mn INR mn INR mn INR mn 4,028 1,189 30% Margin 16,851 5,367 32% Margin 32% 25% Op Revenue yoy growth EBITDA Op Revenue yoy growth EBITDA INR mn INR mn 615 15% Margin 3,742 22% Margin PAT PAT • Organic standalone revenue growth

  4. Slide 4: Key Business Metrics - FY23 Update

    KEY BUSINESS METRICS - FY 23 UPDATE 75% 26% 20% 22% ₹28.1 ₹34 OCF to Dividend ROIC * ROE * EPS Cash EPS EBITDA Payout Ratio • Consolidated OCF to EBIDTA Ratio - 75% (adjusted for GST-related one-off items on brand acquisitions) • Paid dividend of Rs. 100 cr in FY23; Payout ratio of 26% in FY23; 3-ye

  5. Slide 5: Q4 FY23 and FY23 – Entity Wise Growth and Margin Profile

    Q4 FY 23 AND FY 23 – ENTITY WISE GROWTH AND MARGIN PROFILE Q4 FY 23 FY 23 EBITDA Margin Entity Op Op YoY Gr EBITDA YoY Gr YoY Gr EBITDA YoY Gr FY 23 FY 22 Revenue Revenue Eris (Standalone) 3,146 11% 1,115 10% 13,307 9% 5,051 4% 38% 40% Oaknet (BGx) 675 182 2,268 570 25% 10%* Aprica (BGx) 74 -24% -20

  6. Slide 6: Other Business Updates

    OTHER BUSINESS UPDATES • Restructuring to simplify corporate structure and unlock synergies • Effective 1st April 2024, we propose to demerge the Domestic Formulations business of Oaknet and amalgamate it with the parent company Eris Lifesciences Ltd. • We expect this to strengthen our overall “go t

  7. Slide 7: Oaknet Operations Turned Around in Less Than 12 Months of Acquisition

    OAKNET OPERATIONS TURNED AROUND IN LESS THAN 12 MONTHS OF ACQUISITION Oaknet Revenue Trend from Operations (Full Year) Oaknet EBIDTA Trend (Full Year) INR Crore INR Crore 61 28% 250 194 189 195 • Organic 238 cr. 3x (22% growth) 33 Acquired • Glenmark & DRL 21 20 Acquired by Eris ~ 12 cr. by Eris • T

  8. Slide 8: Eris Ranks Among the Top-10 Fastest Growing Companies in FY23

    ERIS RANKS AMONG THE TOP-10 FASTEST GROWING COMPANIES IN FY 23 Eris has outperformed the IPM by 496 bps in FY23 17.8 16.6 15.5 14.3 11.8 11.8 11.5 11.5 11.3 10.7 9.3 IPM INTAS MANKIND TORRENT ERIS LS GSK ABBOTT MACLEODS ALKEM AJANTA ZYDUS Eris continues to rank among the Top-10 companies (by growth)

  9. Slide 9: Significant Diversification of Therapy Mix in FY23

    SIGNIFICANT DIVERSIFICATION OF THERAPY MIX IN FY23 Therapy-wise composition of revenue – FY22 Therapy-wise composition of revenue - FY23 100% = INR 1,618 crore 100% = INR 2,342 crore Rest Rest WHC WHC 8% 9% 4% Rank in CNS Diabetes 5% Diabetes CNS 29% CVM - 6 8% 32% 7% Rank in Derma 14% CVM - 3 21% V

  10. Slide 10: Our Anti-Diabetes Franchise – Robust Growth Across the Board

    OUR ANTI-DIABETES FRANCHISE – ROBUST GROWTH ACROSS THE BOARD Revenue from Diabetes Glimisave Mother Brand Zomelis Mother Brand (DPP4) 25% 673 304 104 10% 52% 539 69 278 FY22A FY23A FY22A FY23A FY22A FY23A Tendia Mother Brand (DPP4) Cyblex Mother Brand Gluxit Mother Brand (SGLT2) 81 62 80 59% 18% 14%

  11. Slide 11: Our Cardiovascular Franchise – Strong Momentum in Established Brands

    OUR CARDIOVASCULAR FRANCHISE – STRONG MOMENTUM IN ESTABLISHED BRANDS Revenue from CVD Therapy* Eritel Mother Brand LN Bloc Mother Brand 468 175 16% 19% 76 15% 404 147 66 FY22A FY23A FY22A FY23A FY22A FY23A Olmin Mother Brand Crevast Mother Brand Atorsave Mother Brand 67 24% 48 62 13% 14% 50 42 59 FY

  12. Slide 12: Our Emerging Therapies – Acquired Critical Mass with Growth Momentum

    OUR EMERGING THERAPIES – ACQUIRED CRITICAL MASS WITH GROWTH MOMENTUM Emerging Therapies Revenue* Cosvate Mother Brand Raricap Mother Brand Drolute Brand 75 30% 27 23 607 9% 17% 21 8x 518 69 3 FY22A FY23A FY22A FY23A FY22A FY23A FY22A FY23A • Revenue base of INR 600+ crore • Accounts for 26% of Reven

  13. Slide 13: Eris Maintains High Prescription Ranking Among Doctor Specialties

    ERIS MAINTAINS HIGH PRESCRIPTION RANKING AMONG DOCTOR SPECIALTIES Eris Prescription Ranking* among Doctor Specialties 5 5 4 DIABETOLOGISTS # CARDIOLOGISTS NEUROLOGISTS 5 CONSULTING 7 4 GASTROENTEROLOGISTS PHYSICIANS DERMATOLOGISTS Source: SMSRC MAT Feb 2023 │* Rank in Represented Market including Oa

  14. Slide 14: Q4 FY23 and FY23 - Standalone Income Statement

    Q4 FY 23 AND FY 23 - STANDALONE INCOME STATEMENT Standalone Q4 FY 23 FY 23 INR Millions Q4 FY 23 Q4 FY 22 FY 23 FY 22 yoy Gr % yoy Gr % Sale of Products 3,084 2,771 11.3% 13,071 11,938 9.5% • FY 23 operating revenue grew 9.5% to Rs. 1,331 cr. Other Operating Income 62 50 24.1% 236 220 7.5% Revenue f

  15. Slide 15: Q4 FY23 and FY23 - Consolidated Income Statement

    Q4 FY 23 AND FY 23 - CONSOLIDATED INCOME STATEMENT Consolidated Q4 FY 23 FY 23 INR Millions Q4 FY 23 Q4 FY 22 FY 23 FY 22 yoy Gr % yoy Gr % • FY 23 operating revenue grew 25% to Rs. 1,685 cr. Sale of Products 3,966 3,011 31.7% 16,618 13,262 25.3% • xx Other Operating Income 62 48 28.1% 233 209 11.8%

  16. Slide 16: Key Growth Drivers for FY24 - FY26

    KEY GROWTH DRIVERS FOR FY24 - FY26 1 Growth in Base Business • Our Top-20 power brands account for 70% of our revenues and have grown at 17% in FY23. 10 out of these brands are ranked among the Top-5 in their respective segments. We have • 4 brands with revenues of Rs. 100+ crore each • 6 brands wit

  17. Slide 17: Key Growth Drivers for FY24 - FY26 (Contd..)

    KEY GROWTH DRIVERS FOR FY24 - FY26 (Contd..) Expansion of physician • We continue to make good progress in expanding our coverage of Specialists and 3 coverage Consulting Physicians in line with our expectations • We added ~ 200 Reps to the Eris field-force in FY23 4 Therapeutic Diversification • St

  18. Slide 18: Shareholder Profile

    SHAREHOLDER PROFILE Shareholding of Promoters and Top 15 Institutional Investors As on As on As on Others DIIs 0.60% Name of Shareholder 31-Mar-23 30-Dec-22 30-Sep-22 10.02% *572 *647 711* Promoters 52.86% 52.70% 52.29% 1 Chrys Capital (Emerald Investment Limited) 7.58% 7.58% 7.58% 2 UTI Mutual Fund

  19. Slide 19: Safe Harbor Statement

    SAFE HARBOR STATEMENT This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward- looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and the underlying assumptions

  20. Slide 20: Thank You

    THANK YOU KRUTI RAVAL INVESTOR RELATIONS kruti@erislifesciences.com 19

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