Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q1 FY2023 Earnings Presentation
27 slides from Laurus Labs's earnings presentation, Jul 27, 2022
Slide 1: Cover letter to stock exchanges
laurus labs limited Corporate Office 2 ·Floor. Serene Chambers. Rood No. 7 Banjoro Hills. Hyderabod- 500034, Telangana. lnd1a T +91 40 6659 4333. 3980 4333. 2342 0500 I 501 LAURUS Labs F +91 40 6659 4320 /3980 4320 Knowledge . Innovation . Excellence July 27, 2022 To To The Corporate Relations Depar
Slide 2: Q1 FY 2023 Financial Results and Business Update
Q1 FY 2023 Financial Results and Business Update July 27 , 2022 O” Otc a (ror xG \s) > aurus Labs Knowledge . Innovation . Excellence
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 3 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 5: Financial Overview
1 Financial Overview 4 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 6: Financial Performance 1Q/FY23
Financial Performance 1Q/FY23 Strong start into the year Revenues ₹ 1,539 Cr ▲20% EBITDA ₹ 454 Cr ▲ 14% Key Highlights 1Q/FY23 Consolidated Financials [₹Crore] 4Q/FY22 1Q/FY23 1Q/FY22 Y-o-Y Q-o-Q Revenue growth of 20% YoY driven from renewed progress in Non-ARV business Revenues 1,425 1,539 1,279
Slide 7: Business Performance 1Q/FY23
Business Performance 1Q/FY23 Key growth led by CDMO-Synthesis and Non-Arv APIs 1Q/FY23 Segment Performance Key Highlights [₹ Crore] 4Q/FY22 1Q/FY23 1Q/FY22 Y-o-Y Q-o-Q Formulation (FDF): Decline 33%, primarily impacted by ARV FDF 491 349 521 -33% -29% business although volumes were stable. Taking
Slide 8: Summary Quarterly Performance
Summary Quarterly Performance Resuming to growth trajectory Revenues EBITDA & Margins % 1,539 700 38.0% [₹ Cr] 33.3% 33.6% 33.8% 31.3% 28.9% 28.2% 27.9% 29.5% 1,412 1,425 600 33.0% 1,288 1,279 477 454 433 28.0% 1,203 500 1,139 379 400 398 348 23.0% 400 1,029 290 18.0% 300 13.0% 200 8.0% 100 3.0% 0 -
Slide 9: Business review & Strategy
2 Business review & Strategy 8 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 10: Generic FDF
Generic FDF ARV business led decline Revenue Growth Global Filings 521 [₹ Cr] 495 491 ROW 28 12 40 373 349 ▼ 33% Y-o-Y Canada 11 6 17 Approved ▼ 29% Q-o-Q Pending EU 9 2 11 1Q 2Q 3Q 4Q 1Q US 24 8 32 FY22 FY22 FY22 FY22 FY23 * Includes 13 Tentative approvals in US Key Highlights FDF revenues declin
Slide 11: Generic APIs
Generic APIs Driven from sustained rebound in ARVs while Other APIs in-line Revenue Growth API Sales mix 583 [₹ Cr] ARV API Other API Onco API 549 527 539 11% 14% 13% 11% 20% 424 14% 22% 24% ▲ 6% Y-o-Y 32% 32% ▲ 8% Q-o-Q 75% 64% 65% 48% 55% 1Q 2Q 3Q 4Q 1Q FY22 FY22 FY22 FY22 FY23 1Q 2Q 3Q 4Q 1Q FY22
Slide 12: CDMO - Synthesis
CDMO - Synthesis Accelerating growth on the back of Integrated CDMO model Key Highlights Best Timelines & Flexibility Accelerated growth momentum +196% YoY during the quarter to ₹ 577 cr, Excellent IP Protection supported by solid demand from new and existing clients Foundation Integrated Service
Slide 13: Laurus Bio
Laurus Bio New capacities scale up to reflect through FY23 Revenue Growth 35 [₹ Cr] Strong market dynamics - Alternate food protein 30 26 25 Scale, cost, and functionality core drivers for differentiation ▲ 114% Y-o-Y 14 Leverage existing Global Partnership & chemistry skills ▼ 14% Q-o-Q Pla
Slide 14: R&D: Clear focus to Create Value Centric portfolio
R&D Clear focus to Create Value Centric portfolio US/EU pipeline by Addressable market R&D spent & Filing trend $ 40 bn 46 54 60 61 73 74 ◄ DMFs 500 10% 9 19 26 27 31 32 ◄ US ANDAs 400 60% 7% $ 21bn Non-ARV 300 202 6% 6% 184 6% 4% 3% 200 166 160 4% ~65% Non-ARV 114 100 49 40% ARV 35% ARV 0 2% FY18 F
Slide 15: 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) Kilo Lab – USFDA, TGA, KFDA, PMDA, 2021 – USFDA Robust Quality Culture that a
Slide 16: We continue to fundamentally diversify our Segment mix
We continue to fundamentally diversify our Segment mix FY 2017 (IPO) FY 2022 (By Segment) Revenues: ₹ 1,905cr Revenues: ₹ 4,936cr Bio, 2% Revenues CAGR: 21% Onco & EBITDA CAGR: 27% Other ARV apis, APIs, 16% 25% Key FY25/26 goal Synthesis, 19% includes ~25% of revenues from Synthesis ARV api * 80%
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 •API, CDMO - Synthesis •FDF & API • 333 reactors with 1,232 KL capacity • 10 bn Tablets/Caps
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: Investments over past 12 months and Future Projects update
Investments over past 12 months and Future Projects update Expanding to drive Long-term sustainable growth Division Location Status & Capacity Operational Vizag Unit 2 - 4 billion units (New building) Formulation Vizag Unit 2 - 1 billion units (De-bottlenecking) New capacities brought online H
Slide 20: ESG Standards & Recognitions
ESG Standards & Recognitions | Adopting best practices for better future Approach Accreditation & Progress Well recognized by multiple agencies Sustainability approach built in our Core Value Framework to support longer value creation Consecutive “A” rating by MSCI ESG Ratings - among top 20%
Slide 21: Outlook & Guidance
3 Outlook & Guidance 20 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 22: Outlook FY2023 & Ahead
Outlook FY2023 & Ahead Business Segments Outlook & Growth Drivers Consolidate market share gains in ARV portfolio Create niche product pipeline for the developed markets backed by in-house API strength Formulations Strong pipeline (US, EU) >US$40bn mkt opportunity; Diabetic & CV portfolio mone
Slide 23: Laurus Priorities FY2023
Laurus Priorities FY2023 Continued focus on delivering growth and operational excellence for long-term success Business Deliver on Capex Investment projects to support diversified Long term growth Minimize supply chain challenges and accelerate efficiency Widen technology portfolio and access
Slide 24: 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 25: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate Structure • All are 100% Subsidiaries except Laurus Labs Limited Laurus Bio (Basic : 76.60%, Diluted : 74.37% ) and ImmunoACT Partly paid (Basic: 18.94%, Diluted 18.20%) India ImmunoACT Fully paid (Basic: 27.57%, Diluted 26.62%) Based on paid up
Slide 26: Conference Call Details
Conference Call Details Results conference call on Thursday – July 28, 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 1
Slide 27: 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,