Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q4 FY2022 Earnings Presentation
38 slides from Laurus Labs's earnings presentation, Apr 28, 2022
Slide 1: Cover letter to stock exchanges: Investors/Analysts Presentation
Laurus Labs Limited Corporate Office 2ndFloor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad- 50003Li, Telangana, India T +91 LiO 6659 Li333, 3980 Li333, 23Li2 0500 I 501 LAURUS Labs F +91 LiO 6659 Li320 I 3980 Li320 Knowledge . Innovation . Excellence April 28, 2022 To To The Corporate Relat
Slide 2: Q4 and Full-Year 2022 Financial Results and Business Update
Q4 and Full-Year 2022 Financial Results and Business Update aurus Labs Knowledge . Innovation . Excellence April 28 , 2022
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 Q4 & Full Year 2022 Investor Presentation | April 28, 2022
Slide 5: Financial Overview
1 Financial Overview 4 Laurus Q4 & Full Year 2022 Investor Presentation | April 28, 2022
Slide 6: FY22 – Overview
FY22 – Overview Fairly Resilient operating metrics EBITDA Summary Revenues ₹ 4,936 Cr ▲3% ₹ 1,436 Cr ▼ 9% Revenues grew at moderate 3% but delivered strong mix improvement led by significant progress in Non-ARV business, especially CDMO-Synthesis FY22 Consolidated Financials Gross Margins: 55.6%
Slide 7: FY22 – Business performance
FY22 – Business performance CDMO-Synthesis led Significant progress in Non-ARV business FY22 Segment Performance Key Highlights [₹ Crore] FY22 FY21 Y-o-Y Formulation (FDF) Q4 normalization leading to healthy growth of +13% YoY for FY22 FDF 1,880 1,664 13% Sustainable ARV business and steady mark
Slide 8: FY22 – Financial Position
FY22 – Financial Position FY22 Balance sheet Increase in net fixed assets [₹Crore] FY22 FY21 Y-o-Y Increase mainly in property, plant and equipment towards capacity addition Net Fixed assets (incl. CWIP) 3,209 2,277 +932 API, CDMO and FDF business Goodwill and Intangibles 257 256 +1 Net Working Ca
Slide 9: Journey since IPO
Journey since IPO Industry leading Revenue growth Superior Earning growth [EPS] Strong Improvement in ROCE profile [₹ Cr] 18 4,936 40.1% 4,814 15 + 950bps 26.3% 2,832 2,292 2,056 16.5% 1,905 13.7% 14.1% 4 5 3 2 8.2% FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21
Slide 10: Financial Performance 4Q/FY22
Financial Performance 4Q/FY22 Healthy results driven by swift demand recovery in ARV APIs, Formulation and Strong CDMO Revenues ₹ 1,425 Cr ▲1% EBITDA ₹ 398 Cr ▼ 17% Key Highlights 4Q/FY22 Consolidated Financials [₹Crore] 3Q/FY22 4Q/FY22 4Q/FY21 Y-o-Y Q-o-Q Sequential increase in line with guidance
Slide 11: Summary Quarterly Performance
Summary Quarterly Performance Consistent Delivery – Normalization underway Revenues EBITDA & Margins % 1,425 700 38.0% 1,412 33.3% 33.6% 33.8% 31.3% 28.9% 28.2% 27.9% 29.2% 33.0% 1,288 1,279 600 [₹ Cr] 477 1,203 433 28.0% 1,139 400 398 500 379 348 23.0% 1,029 400 974 300 284 290 18.0% 13.0% 200 8.0%
Slide 12: Business review & Strategy
2 Business review & Strategy 11 Laurus Q4 & Full Year 2022 Investor Presentation | April 28, 2022
Slide 13: Business Performance 4Q/FY22
Business Performance 4Q/FY22 Key Drivers of Change – Tracking healthy 4Q/FY22 Segment Performance Key Highlights [₹ Crore] 3Q/FY22 4Q/FY22 4Q/FY21 Y-o-Y Q-o-Q Formulation (FDF): Recovered sequentially and grew by 14% YoY FDF 373 491 430 14% 32% following demand stabilization in ARVs segment. Recei
Slide 14: Generic FDF
Generic FDF GROWTH PILLAR: Integrated Approach Rebound in line with forecast Monetization of Pipeline assets Diversification into High Value therapies Revenue Growth Global Filings 521 [₹ Cr] 495 491 ROW 28 11 39 430 373 ▲ 14% Y-o-Y Canada 11 6 17 Approved ▲ 32% Q-o-Q Pending EU 6 5 11 4Q 1Q 2Q 3Q 4
Slide 15: Generic APIs
Generic APIs GROWTH PILLAR: Process Chemistry & Cost Leadership High base but Demand returning gradually in ARVs Portfolio Expansion in High Value therapies Sizeable Capacity & Purpose built Facility Revenue Growth API Sales mix ARV API Other API Onco API 2621 [₹ Cr] 8% 11% 14% 13% ▼ 32% Y-o-Y 19% 2
Slide 16: CDMO - Synthesis
CDMO - Synthesis GROWTH PILLAR: End-to-end Service Capability Accelerating towards more collaborations Built on IP Protection, Customer Flexibility Tremendous growth in outsourcing trend Revenue Growth Key Highlights 917 [₹ Cr] Synthesis business maintained its robust growth momentum +105% YoY dur
Slide 17: Laurus Bio - Bio business
Laurus Bio - Bio business GROWTH PILLAR: Opportunity in Recombinant AF Food Protein Business integration & New capacities broadly on track Synergize Biotech and fermentation capability Revenue Growth Pre-Acquisition 100 Post [₹ Cr] Plan to create 1MN liters fermentation capacity ▲ 289% Y-o-Y Lever
Slide 18: R&D: Leveraging capability to create a Value Centric portfolio
R&D Leveraging capability to create a Value Centric portfolio US/EU pipeline by Addressable market R&D spent & Filing trend $ 45 bn 39 46 54 60 61 73 ◄ DMFs 500 10% 450 3 9 19 26 27 31 ◄ US ANDAs 400 350 7% 7% 70% Non-ARV 19 Final Approvals 300 6% 4% 4% 250 6% 6% 11 US 184 202 200 166 160 $ 12bn 8 E
Slide 19: Robust Regulatory track and Quality Foundation
Robust Regulatory track and Quality Foundation Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Year Last US FDA – Facility Regulatory Certifications audits (since started Inspection status inception) 2021 – Facility Kilo Lab – USFDA, TGA, KFDA, PMDA, Assessment completed Robus
Slide 20: We continue to fundamentally diversify our Segment mix
We continue to fundamentally diversify our Segment mix FY 2017 FY 2022 IPO By Segment Revenues: ₹ 1,905cr Revenues: ₹ 4,936cr Bio, 2% Revenues CAGR: 21% Onco & Continued Organic Investment in EBITDA CAGR: 32% Other manufacturing asset, Integrated ARV apis, APIs, 16% approach across portfolio, Strong
Slide 21: 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) • 333 reactors with 1,23
Slide 22: 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 23: Growth Investments in FY22 and Future Projects
Growth Investments in FY22 and Future Projects Expanding to drive Long-term sustainable growth Division Location Status & Capacity Operational Vizag Unit 2 - 4 billion units (New building) Completion before June’22 Formulation Vizag Unit 2 - 1 billion units (De-bottlenecking) New capacities brou
Slide 24: Foundation Statement: Laurus Vision and Values
Foundation Statement Laurus Vision Our Values “To become a leading player in offering integrated solutions to Knowledge Innovation Excellence Integrity Care global pharmaceutical needs in Seek to learn Strike out on new Scale new peaks Stand up always Be diligent, safe constantly to paths to go fart
Slide 25: 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 26: Key Management Team
Key Management Team Driven by credible expertise Dr. V Uma Maheswer Rao Mr. Srinivasa Rao S Mr. Krishna Chaitanya Chava EVP – Chemical R&D EVP – Manufacturing & Operations EVP - Synthesis Division Key Expertise: Extensive experience in process R&D, Key Expertise: +27 years experience in production K
Slide 27: ESG Standards & Sustainability
ESG Standards & Sustainability | Adopting best practices for better future Approach Accreditation Sustainability approach built in our Core Value Framework Well recognized by multiple agencies including MSCI* to support longer value creation (Global leader in ESG Ratings) Enhanced Process & Fo
Slide 28: Outlook & Guidance
3 Outlook & Guidance 27 Laurus Q4 & Full Year 2022 Investor Presentation | April 28, 2022
Slide 29: Outlook FY2023 & Ahead
Outlook FY2023 & Ahead Business Segments Outlook & Growth Drivers FY 2023 Aspirational Target Retain market share gains in ARV portfolio including few potential launches in 2L ART Create niche product pipeline for the developed markets backed by in-house API strength Formulations Strong pipeli
Slide 30: 8 Pillars underpins Laurus Sustainable Growth
8 Pillars underpins Laurus Sustainable Growth 1 Research First Approach; Process chemistry skills and Develop cost leadership 2 One quality standard for all markets & State-of-art Modern manufacturing facilities; comparable to large CMO Players 3 Impeccable compliance track record; FDA and EMA accep
Slide 31: Laurus Priorities FY2023
Laurus Priorities FY2023 Continued focus on value creation led by growth acceleration and operational excellence Business Deliver on Capex Investment projects to support diversified Long term growth Minimize supply chain challenges and accelerate efficiency Widen technology portfolio and acces
Slide 32: Recognition and Accolades
Recognition and Accolades Great Place to Work Golden Peacock Award Most Promising company of Year 2021 For the third consecutive time For Excellence in Corporate in a study conducted by the Governance 2020 Awarded by CNBC-TV18 Indian Great Place to Work® Institute Business Leader Awards India Pharma
Slide 33: Appendix
4 Appendix 32 Laurus Q4 & Full Year 2022 Investor Presentation | April 28, 2022
Slide 34: ARV market – Industry Trend (1/2)
Updated WHO guideline – 2021 ARV market – Industry Trend (1/2) KEY FINDINGS Progress on HIV treatment – Moving to 95-95-95 target Emphasize on Differentiated and 37.7M People Living with HIV – 75% treatment coverage Progress Toward UNAIDS Targets on HIV integrated service delivery models; in 2
Slide 35: ARV market – Industry Trend (2/2)
ARV market – Industry Trend (2/2) DTG based ART to remain preferred regime by 2025 By 2023, DTG based regime share est. to reach DTG comprised 8% of 2L treatment in 2020. The share Weighted Avg. GA LMIC Regimen Prices 94%. DTG has better clinical benefits & affordability of DTG is expected to
Slide 36: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate Structure All are 100% Subsidiaries except Laurus Laurus Labs Limited Bio and ImmunoACT* India Laurus Synthesis Laurus Generics *Laurus Bio (earlier Sriam Labs Pvt Ltd Laurus Holdings Ltd *ImmunoACT 18.94%^^ Pvt. Ltd SA (PTY) Ltd Richcore) 74.4%
Slide 37: Conference Call Details
Conference Call Details Results conference call on Friday – April 29, 2022 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 1342 India Local access Number +91 22 7115 8243 Available all over India Singapore 800 10
Slide 38: About Laurus Labs
About Laurus Labs 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,