Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q4 FY2019 Earnings Presentation
27 slides from Laurus Labs's earnings presentation, May 2, 2019
Slide 1: Cover letter to stock exchanges
Laurus Labs Limited Corporate Office 2"" Fioor. Serene Chambers. Road No. 7 Banjara Hills, Hyderabad- 50003£., Telangana. India T +91 £.0 3980£.333 I 23£.2 0500 I 501 F +91 £.0 3980£.320 LAURUS Labs Knowledge . Innovation . Excellence May 02,2019 To To The Corporate Relations Department The Listing
Slide 2: Laurus Labs Limited Q4 & FY19 Investor Presentation
LAURUS LABS LIMITED Q4 & FY19 INVESTOR PRESENTATION May 02, 2019 BSE: 540222 NSE : LAURUSLABS
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ mate
Slide 4: Business Snapshot
Business Snapshot Overview • Development, manufacture • Developing and manufacturing • Contract development and • Sale and manufacture of and sale of active oral solid formulations manufacturing services for specialty ingredients for use in pharmaceutical ingredients global pharmaceutical nutraceuti
Slide 5: Strategy in Motion
Strategy in Motion Hep C, Oncology & FDFs ARV Other APIs Synthesis Ingredients • Significant increase in HIV • Leadership in select • Leverage API capabilities • Focus on supply of key • Leverage process patient population with Oncology API. Launching backed up by backward starting materials and che
Slide 6: Formulations Business – Global Approach
Formulations Business – Global Approach Extensive Manufacturing capabilities across markets with commitment to maintain highest quality standards – “One Quality Standard for All Markets” Current FDF Manufacturing Capacity - 5 bn tab/caps with total Capex investment of ~INR 4,310 mn Entered Str
Slide 7: Formulations Strategy for Emerging Markets
Formulations Strategy for Emerging Markets Emerging Markets of Africa & ARV Tender business remains the forefront of our Formulations Overview Strategy. Integrated approach is key to success and Laurus is well positioned to garner this opportunity Emerging Markets – Global Fund tenders, PEPFAR Tende
Slide 8: Formulations Strategy for Developed Markets
Formulations Strategy for Developed Markets US, EU, Canada remains our key focus markets by focusing on the combination of commercialised high Overview volume products, first to file, Para IV opportunity based on IP to address short, medium and long term strategy. Target Markets USA, Europe and Cana
Slide 9: Synthesis (CDMO) Business Strategy
Synthesis (CDMO) Business Strategy 2,552 • State-of-the-art cGMP facilities to manufacture NCEs • Can support early stage, late stage and commercial launch supply requirements 1,541 Overview • Working with Global Innovator Companies • Around 50% of the business revenue comes from ASPEN & the rest 1,
Slide 10: Transformation of Business Model
Transformation of Business Model • Crossed INR 20 billion of revenue • Commenced commercial operations from Unit 4 • Investment of INR • Investment of INR • Incorporated a subsidiary in Germany 600 mn by FIL 3000 mn by • Unit 2- Received EIR from USFDA • Set up the R&D Capital Warburg Pincus • Succe
Slide 11: Strong R&D Capabilities
Strong R&D Capabilities “Research-first” approach – Set up dedicated R&D Key Accreditations center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 and further expansion completed in 2017. R&D team comprising ~800 scientists (~24% of total employee strength) includi
Slide 12: Quality Focus & Regulatory Audits
Quality Focus & Regulatory Audits Laurus’ Philosophy “One Quality Standard for all markets” Regular Inspection at different manufacturing units 2019 USFDA We maintain consistent quality, efficiency and product 2018 USFDA, JAZMP - Slovenia safety. 2017 WHO, USFDA, EU (Germany) We have adopted uniform
Slide 13: Manufacturing Facilities at Parawada, Vizag
Manufacturing Facilities at Parawada, Vizag Unit-I • Located at Jawaharlal Nehru Pharma City, Vishakhapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • Commenced operations in 2007. • 319 reactors with 1,180 Kilo Liters capacit
Slide 14: Manufacturing Facilities at Achutapuram, Vizag
Manufacturing Facilities at Achutapuram, Vizag Unit-II • Located at APIIC, Achutapuram, Visakhapatnam, India. (SEZ) • FDF and API manufacturing facility • Commenced operations in 2017. • FDF - capacity of 5 bn tablets/capsules per year. • API block with 12 reactors with 83 Kilo Liters capacity. • Re
Slide 15: Business Highlights – Q4 & FY19
Business Highlights – Q4 & FY 19 Overall Total Income at INR 22,919 mn in FY19 (Y-o-Y) grown by 11.5 % and INR 6,352 mn during quarter grown by 13.4% Y-o-Y. R & D spent of INR 1,659 mn and 7.4% of sales in FY19. Generic API Filed 238 patent applications and 81 patent granted as on March 31, 20
Slide 16: Performance Highlights - Abridged Profit & Loss statement
Performance Highlights - Abridged Profit & Loss statement Growth % Growth % Growth % (Q4 FY19 (Q4 FY19 (FY19 Particulars (Rs. mn) Q4 FY19 Q4 FY18 Q3 FY19 FY19 FY18 Vs. Vs. Vs. Q4 FY 18) Q3 FY 19) FY18) Total Revenues from Operations (Net) 6,352 5,602 13.4% 5,295 20.0% 22,919 20,562 11.5% Total Expen
Slide 17: Drivers of Revenue – Division wise revenue breakup
Drivers of Revenue – Division wise revenue breakup Total Revenues grew by 13% for the quarter (Y-o-Y) and 11% 4% 4% 2% 4% 3% 2% 3% 3% 9% 7% for FY 19(Y-o-Y) 10% 11% 15% 8% Generic API 8% 9% 8% 7% 8% o ARV Segment registered a growth of 4% in FY19 (Y-o-Y) 10% 10% 11% 7% 8% on the back of improved
Slide 18: Abridged Balance Sheet
Abridged Balance Sheet As on As on Particulars (Rs. mn) 31.03.2019 31.03.2018 EQUITY AND LIABILITIES Shareholders' funds Share capital 1,064 1,060 Reserves and surplus 14,520 13,766 Non-current liabilities 3,489 2,272 Current liabilities 14,239 13,069 Total 33,312 30,167 ASSETS Non-current assets 1,
Slide 19: Snapshot of Return Ratios
Snapshot of Return Ratios Pre Tax Return on Capital Return on Equity(2) (%) Total Debt/Equity Ratio (x) Employed(1) (%) 16.5% 16.5% 17.0% 17.4% 1.2x 1.1x 14.5% 13.7% 12.7% 11.9% 0.7x 0.7x 8.2% 0.6x 6.2% FY15 FY16 FY17 FY 18 FY 19 FY15 FY16 FY17 FY 18 FY 19 FY15 FY16 FY17 FY 18 FY 19 Significant inve
Slide 20: Management Team
Management Team Mr. Tom Versosky Mr. Chandrakanth Chereddi President FDF North America ED & Head, Generics FDF & Strategy Dr. Prafulla Kumar Nandi SVP, Global Regulatory Affairs Mr. Ravi kumar V V Mr. G Venkateshwar Reddy (Formulations) ED &CFO CS and Sr. GM – Legal & Secretarial Dr. GSR Anjaneyulu
Slide 21: Corporate Governance
Corporate Governance Executive Directors Name Background Dr Satyanarayana Chava Whole-time Director, Founder and Chief Executive Officer Ravi Kumar V V Whole-time Director and CFO Chandrakanth Chereddi Whole-time Director and Head of Generic FDF and Strategy Dr Lakshmana Rao C V Whole-time D
Slide 22: Ownership Structure
Ownership Structure Corporate Structure Laurus Labs Limited Laurus Synthesis Laurus Holdings All are 100% Sriam Labs Pvt Ltd. Inc. Ltd. Subsidiaries India USA UK Laurus Generics Laurus Generics Inc. GmbH. USA Germany Shareholding pattern * 32.8% 5.2% 12.8% 1.16% 0.11% 19.72% 5.75% 22.6% Promoter Fin
Slide 23: Express Pharma Excellence Award 2019
Express Pharma Excellence Award 2019 Laurus Labs is honored to receive the Indian Express Pharma Excellence Award 2019. Dr. V. Uma Maheswer Rao, Executive Vice President, Laurus Labs and Mr. Ramana Rao, Vice President, Laurus Labs received the Award at a glittering ceremony in Hyderabad on February
Slide 24: Fortune 500 Company, Great Place To Work
Laurus Labs is a Fortune 500 Company, Great Place To Work and one of the India’s Best Workplace in 2018 Laurus Labs is listed in the Fortune Laurus Labs is certified as Laurus Labs is recognized as 500 Companies List in India “Great Place to Work” for the one of the Best Work Places in year 2018. Bi
Slide 25: Results Conference Call
Results Conference Call Results conference call on Friday May 03, 2019 at 3:00 PM IST Details of the conference call are as follows: Timing 3:00 PM IST on Friday, May 03, 2019 Conference dial-in +91 22 6280 1214 Universal Dial-In +91 22 7115 8115 India Local access Number +91 7045671221 Available al
Slide 26: Contact us
Contact us About Laurus Labs Ltd. Laurus Labs is a leading research and development driven pharmaceutical company in India. The Company has grown consistently to become one of the leading manufacturers of Active Pharmaceutical Ingredients (APIs) for anti-retroviral (ARV) and Hepatitis C. Laurus also
Slide 27: Thank You
Thank You