Eris Lifesciences Ltd · NSE:ERIS
Eris Lifesciences — Q1 FY25 Earnings Presentation
19 slides from Eris Lifesciences's earnings presentation, Aug 2, 2024
Slide 1: Stock exchange filing cover letter
Date: 02 August 2024 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
Slide 2: Q1 FY25 Investor Presentation
Q1 FY 25 INVESTOR PRESENTATION 2nd Aug 2024 1
Slide 3: Eris Strategic Business Units Explained
ERIS STRATEGIC BUSINESS UNITS EXPLAINED 90% of Q1 Revenue Base business Domestic Branded Biocon-1 Formulations (Nov-23 deal) (DBF) Biocon business ERIS Biocon-2 LIFESCIENCES (Apr-24 deal) 10% of Q1 Revenue Focused on exports Swiss to 70+ semi- Parenterals regulated markets 2
Slide 4: Domestic Branded Formulations – Base Business Highlights (AWACS)
DOMESTIC BRANDED FORMULATIONS – BASE BUSINESS HIGHLIGHTS (AWACS) 20 Base Business Highlights – AWACS Pharmatrac th ▪ Q1 growth 12.7% vs. CVM growth of 8.1% - ahead of market by 460 bps - market-beating growth in 4 out of top 6 therapies Eris now ranks among the ▪ Oral Anti-Diabetes market share grow
Slide 5: Domestic Branded Formulations – Base Business Financials
DOMESTIC BRANDED FORMULATIONS – BASE BUSINESS FINANCIALS Base Business – Q1 Financials ▪ Q1 Organic revenue growth 10% ▪ Q1 Gross Margin 86% - up by 282 bps on a yoy basis FY25 Guidance ▪ Q1 EBIDTA Margin 39% - up by 185 bps on a yoy basis due to productivity gain, gross margin improvement and • Rev
Slide 6: Strong Start to Business Integration – Biocon-1 Business Segment
STRONG START TO BUSINESS INTEGRATION – “BIOCON-1” BUSINESS SEGMENT (A) Portfolio acquired in Nov-23 ▪ Q1 revenue growth of 16% driven by strong growth in power brands, with a Q1 YPM of INR 7.43 lakh FY25 Guidance 40% growth • Revenue INR 125 crore (25% in Top-7 growth on the base of INR power 100 cr
Slide 7: Strong Start to Business Integration – Biocon-2 Business Segment
STRONG START TO BUSINESS INTEGRATION – “BIOCON-2” BUSINESS SEGMENT (B) Portfolio acquired in Apr-24 ▪ Integrated well ahead of schedule; delivered 13% revenue FY25 Guidance growth in Q1 FY25 with a YPM of INR 7.8 lakh • Basalog & Insugen combined revenue ▪ Insulin Segment (Basalog and Insugen) ~ INR
Slide 8: Domestic Branded Formulations Business – Q1 Financial Summary
DOMESTIC BRANDED FORMULATIONS (DBF) BUSINESS – Q1 FINANCIAL SUMMARY DBF Revenue (INR Crore) DBF EBIDTA (INR Crore) 632 225 39% 34% 455 168 Q1 24 Q1 25 Q1 24 Q1 25 DBF EBIDTA Margin (Per Cent) DBF YPM (INR Lakh) 39% 5.66 13% 37% 36% 5.02 Q1 24 Q1 25 Ex Biocon Q1 24 Q1 25 7
Slide 9: DBF P&L Statement for Q1 – Significant Fixed Cost Synergies Coming In
DBF P&L STATEMENT FOR Q1 – SIGNIFICANT FIXED COST SYNERGIES COMING IN Total Domestic Branded Formulations Q1 FY 25 Integration Benefits Coming In Q1 FY 25 Q1 FY 24 INR Crores • Q1 Gross Margin reduction of yoy Gr % 584 bps yoy due to change in Revenue from Operations 632 455 38.9% product mix (Bioco
Slide 10: Evolution from Specialty to Specialty + Superspecialty Business
EVOLUTION FROM A “SPECIALTY” TO A “SPECIALTY + SUPERSPECIALTY” BUSINESS – RESULTING IN SIGNIFICANT HEADROOM FOR GROWTH Therapy-wise composition of revenue – MAT Mar’22 Therapy-wise composition of revenue – MAT Jun’24 100% = INR 1,662 crore 100% = INR 3,108 crore Rest Rest Nephro WHC Critical Care Or
Slide 11: Strong Start to Business Integration - Swiss Parenterals
STRONG START TO BUSINESS INTEGRATION - SWISS PARENTERALS Financial Summary Product Pipeline and Order Book Status ▪ Q1 headline financials ▪ 185 New Dossiers filed in Q1 across 42 ▪ Revenue INR 73 crore countries ▪ EBIDTA INR 26 crore ▪ 11 new products filed in Q1 in the segments of Ophthalmology, C
Slide 12: Consolidated P&L Q1 FY25 – Good Visibility of Fixed Cost Synergies
CONSOLIDATED P&L Q1 FY25 – GOOD VISIBILITY OF FIXED COST SYNERGIES Consolidated Q1 FY 25 • Q1 operating revenue up by 54.2% to INR 720 crore Q1 FY 25 Q1 FY 24 INR Crores yoy Gr % • Q1 Margin Movement and Fixed Cost Synergies Revenue from Operations 720 467 54.2% • Gross Margin down by 829 bps in Q1
Slide 13: Acquisition of an Approved LL Site of Biocon
ACQUISITION OF AN APPROVED LL* SITE OF BIOCON – CREATING THE HUB FOR OUR BIOTECH BUSINESS AND GETTING “GLP-1 READY” The Board has approved a proposal to acquire Chemman Labs at a valuation of INR 105 crore Site Highlights A key stepping stone to realise our Biotech vision ▪ Broad-spectrum biosimilar
Slide 14: Putting It All Together - Business Guidance for FY25
PUTTING IT ALL TOGETHER - BUSINESS GUIDANCE FOR FY 25 FY 25 – Business Guidance FY 25 – Key Considerations • Total DBF revenue INR 2,600+ crore with EBIDTA ▪ Depreciation ~ INR 100 cr. margin of 36% • Organic DBF revenue growth of 12-14% with base business EBIDTA of 37% ▪ Amortisation ~ INR 205 cr.
Slide 15: We Remain Committed to Rebuilding Balance Sheet Strength
WE REMAIN COMMITTED TO REBUILDING BALANCE SHEET STRENGTH Balance Sheet strategy shared at the end of FY24 – To reduce Debt to EBIDTA from 3.5x to < 2x in 18 months Outstanding Debt to Key Considerations Debt* (INR Cr) Fiscal-Year EBIDTA* As on 31 March 2024 We are on 3,000 3.5 x • Proforma EBIDTA fo
Slide 16: In Closing - Strategic Priorities for FY25
IN CLOSING - STRATEGIC PRIORITIES FOR FY25 1 Base Business • Organic growth 12-14% with robust growth in power brands • EBIDTA margin of 37% 2 Biocon Business • Overall revenue growth of 27% (across both segments acquired) • New product launches to expand CVM and broaden our base • EBIDTA margin exp
Slide 17: Shareholder Profile
SHAREHOLDER PROFILE Shareholding of Promoters and Top 15 Institutional Shareholding Pattern Investors 30-Jun-24 31-Mar-24 31-Dec-23 Name of Shareholder 1,023* 843* 910* Other Promoters 54.88% 54.90% 54.90% Public s 13.53% 0.77% HDFC Mutual Fund 7.76% 6.60% 5.39% Chrys Capital (Emerald Investment Lim
Slide 18: 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
Slide 19: Thank You
THANK YOU KRUTI RAVAL INVESTOR RELATIONS kruti@erislifesciences.com 18