Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Investor Presentation (August 2019)
16 slides from Dr. Reddy's Laboratories's investor presentation, August 2019
Slide 1: Investor Presentation
Investor Presentation August 2019 Dr. Reddy’s Laboratories Limited Hyderabad, India BSE: 500124 | NSE: DRREDDY | NYSE: RDY
Slide 2: 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 underlying assumptions and
Slide 3: More than ever people across the world need access to affordable healthcare
More than ever people across the world need access to affordable healthcare Our purpose and promises remain relevant to achieve this need PURPOSE OUR PROMISES Bringing expensive medicine within reach We accelerate access Addressing unmet patient needs to affordable medicines because Helping patients
Slide 4: We have what it takes to win in the generics industry
We believe that the changes in market dynamics have created exciting opportunities. We have what it takes to win in the generics industry Strong R&D, API, Broad portfolio – Six spaces set Commitment to Stable ownership complex generics, Differentiated, up for growth operational and strong biologics,
Slide 5: We have improved our business performance in last few years
We have improved our business performance in last few years… SALES: 2 year CAGR of 5% EBITDA: 2 year CAGR of 16% INR Cr. 15,385 14,081 14,203 3,419 1,468 1,173 1,424 2,414 2,549 2,128 2,199 2,408 31% 4,420 4,598 5,507 36% 18.1% 17.0% 22.2% 45% 6,360 5,982 5,996 39% FY17 FY18 FY19 FY17 FY18 FY19 EBIT
Slide 6: Controlling spend and capex with a strong balance sheet
…We are controlling our spend and capex while we remain with a strong balance sheet and are focusing on improving profitability … Gross margin holding up despite continuing price Spend optimization initiatives & improved productivity erosion in the US INR Cr. 6,592 6,517 6,450 55.6% 54.2% 53.7% 4,63
Slide 7: We continued on our improvement journey in Q1 FY20
We continued on our improvement journey in Q1 FY 20 Revenues EBIDTA* Free Cash Flow INR 3,844 Cr INR 1,134 Cr INR 850 Cr (YoY growth: 3%) (% of Sales: 29.5%) PBT * R&D Expenses Net Debt / Equity INR 850 Cr INR 361 Cr 0.04 (YoY growth: 70%) (% of Sales: 9.4%) * Includes Rs. 346 cr received from Celge
Slide 8: Recent Updates - YTD FY20
Recent Updates - YTD FY 20 United States Canada Launched 10 products including some complex and Received $ 50 million First- to- market Assets like Daptomycin Inj, Carboprost as settlement towards Inj, Vitamin K Inj, OTC Guaifenesin Pseudoephedrine and Section 8 damages for re-launch of Isotretino
Slide 9: Our Focus continues to be on
Our Focus continues to be on: 1 Delivering high growth in emerging markets 2 Enhancing customer service Launching new products in US and other markets and 3 continue to build a healthy pipeline Improving efficiency and cost controls, 4 elimination of waste 5 Divesting non strategic assets and brands
Slide 10: Our Quality Journey
Our Quality Journey We are committed to excellence in quality and being best in class U.S. FDA Audit Updates Sites Previously on Warning Letter CTO 6: Submitted all compliance responses; Awaiting re-inspection FTO 7 Sterile Plant: Received EIR, status changed to VAI Update on recently audited sites
Slide 11: Six spaces which will drive significant growth: US Generics
Six spaces which will drive significant growth 1 ● 107 products pending approval in US* US ● Ramp-up in New launches Generics ● Providing great customer service We have a healthy pipeline of First-to-market, complex Products NUMBER OF PENDING FILINGS* BY DOSAGE FORM Topical/ Transdermal/ 10 products
Slide 12: Six spaces which will drive significant growth: China
Six spaces which will drive significant growth 2 ● We are looking for sustainable high growth in China China ● Many of our US products meet the new Chinese requirements High CAGR in China What are we going to do in China? 24% ● Select and launch products that meet local requirements CAGR 129 ● Scale
Slide 13: Six spaces which will drive significant growth
Six spaces which will drive significant growth 3 4 ● Focus on mega brands Russia India ● Focus on leveraging Dr. Reddy’s brand ● Develop and launch clinically differentiated products 5 ● Partner of choice for global generics manufacturers effectively API ● Global Leadership through cost, service and
Slide 14: Key Strategic Priorities
Key Strategic Priorities Focus on execution in the short term… Focus on Improve Focus on profitable growth efficiencies and compliance and and shareholder our cost structure quality returns Growth in all markets and launch new products PROPRIETARY
Slide 15: Key Strategic Priorities
Key Strategic Priorities …And ensure growth in the long term Continue to build Strengthen our Build strong our global positioning with leadership teams portfolio organic and and enhance our inorganic moves internal Divest non strategic assets Selective inorganic moves to processes complement our
Slide 16: Thank you
Thank you PROPRIETARY
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