Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Investor Presentation (June 2023)
28 slides from Dr. Reddy's Laboratories's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023 Dr. Reddy’s Laboratories Limited Hyderabad, India BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY PROPRIETARY
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: Our purpose guides and energizes us on our journey
Our purpose guides and energizes us on our journey Our credo translates into three pillars Access To serve as many patients as possible across the world Good Affordability Health operational excellence and productivity to deliver care Can’t affordably to patients Wait. Patient-centric Innovation Foc
Slide 4: Dr. Reddy's is uniquely positioned to create sustained Shareholder Value
Dr. Reddy’s is uniquely positioned to create sustained Shareholder Value Diversified presence across Strong & Established Core businesses markets (US, Europe, India, (API, Gx, OTC, Biosimilars) Russia, China, Brazil & other EM) Digitalization focus across Future growth opportunities marketing, R&D a
Slide 5: FY23 Highlights (1/2)
FY23 Highlights (1/2) 1 Healthy business growth o Revenues in North America Generics & in Branded markets of India & EM crossed $ 1 bn mark for second consecutive year 2 Launched Lenalidomide capsules in the US (as part of the volume limited settlement with innovator) 3 Healthy EBITDA at 30% and RoC
Slide 6: FY23 Highlights (2/2)
FY23 Highlights (2/2) 7 Significant progress in biosimilar business o Launch of biosimilar Stimufend® (Pegfilgrastim) by Fresenius Kabi in US o Clinical studies of Rituximab biosimilar completed and filed in US, EU and UK-MHRA o Phase 1 study of Tocilizumab biosimilar completed and Global Phase 3 st
Slide 7: We are transforming into a digital organization
We are transforming into a digital organization FTO-3, our largest manufacturing facility, designated • Journey so far – as an ‘Advanced fourth Industrial Revolution (4IR) • Digitization of infrastructure & processes Lighthouse’ by the World Economic Forum • Project ‘OpsNext’ - Six Industry 4.0 tech
Slide 8: Financials
Financials 8 PROPRIETARY
Slide 9: Sustaining double digit growth in Revenue & EBITDA
Sustaining double digit growth in Revenue & EBITDA Revenues EBITDA CAGR: 12.1% CAGR: 16.3% ₹ 7.3k cr ($ 0.9 bn) ₹ 24.6k cr ₹ 4.6k cr ₹ 4.7k cr ₹ 5.1k cr ₹ 21.4k cr ($ 3.0 bn) ₹ 17.5k cr ₹ 19.0k cr ($ 2.6 bn) ($ 0.6 bn) ($ 0.6 bn) ($ 0.6 bn) ($ 2.1 bn) ($ 2.3 bn) 26.6% 25.0% 24.0% 29.7% FY20 FY21 FY2
Slide 10: While we continue to drive productivity, we are also investing for future growth
While we continue to drive productivity, we are also investing for future growth Gross Margin: Increase driven by high margin new SG&A: Investing in brands and digital capabilities product sales & higher government incentives 8,000 31.7% 28.7% 28.8% 29.0% 27.7% 30.0% 7,000 56.7% 6,000 25.0% 54.2% 53
Slide 11: Improving Return Metrics and Strong Balance Sheet, provides us an opportunity to grow further
Improving Return Metrics and Strong Balance Sheet, provides us an opportunity to grow further Free cash flow: Robust cash-flow generation from operations Net Debt / Equity: cash surplus; providing strength for expansion 0.09 ₹ 4.0k cr -0.03 -0.04 ($ 0.5 bn) -0.08 ₹ 2.2k cr ₹ 2.3k cr ₹ 2.5k cr ($ 0.3
Slide 12: 3-year Total Shareholder Return
3-year Total Shareholder Return Dividend Rs 25 Rs 30 Rs 40 EPS Rs 103.7 Rs 141.7 Rs 270.9 Rs 5,576 Rs 4,907* Rs 3,984 Rs 3,679 FY21 FY22 FY23 *Closing price of May 8th, 2023; Opening rate as of May 9th 2020 Total Shareholder Dividend + Capital Gains Dr Reddy’s 3 Year : 7.8% Return (3 Years) Rs. 1,00
Slide 13: Business Strategy
Business Strategy 13 PROPRIETARY
Slide 14: We continue to progress on our journey in two horizons
We continue to progress on our journey in two horizons… Horizon 1 – Growing the core Horizon 2 – Building the future Disease Branded Immuno- Management CDMO Generics Generics oncology (small and API NCEs large mol.) Nutraceuticals Biosimilars OTC Digital Biologics & CGT Services D2C (drivers in shor
Slide 15: ...to deliver our future
Growth …to deliver our future Serving 1.5Bn+ patients (3X from current baseline) aspiration Double digit revenue growth Returns 25% EBITDA and 25% ROCE Sustainability Be a leader 15 © copyright Dr. Reddy’s Ltd.
Slide 16: Three pillars of Market Leadership, Productivity and Innovation
With patient at the center, our execution is driven by three pillars of Market Leadership, Productivity and Innovation • Focus on ‘products that matter’ o Economy of Scale, Complex, Brands and Clinically differentiated products Leadership in chosen spaces To Serve 1.5Bn+ • Digital and Automation pat
Slide 17: Core businesses – Generic Markets
Core businesses – Generic Markets North America – Growth in 9 out of last 12 quarters Win in channels • 190+ commercial products • Robust pipeline* of 175+ products, 81 of them filed 60%+ products Retail • ~40% Injectables/ Sterile products are ranked 1-3 • 25+ complex products Institutional 58%+ pr
Slide 18: Core businesses – Branded Markets
Core businesses – Branded Markets India – 2X growth in last four years Driving strong outcome • Aim to be among Top-5 in India Brands in IPM 16 • Focus areas Top 300 • Horizon-1 – Build big brands, winning in chosen therapy/ disease areas (through Brands with 15+ differentiated portfolio & inorganic
Slide 19: Core businesses – Our PSAI business
Core businesses - Our PSAI business is… 1 API Develop, manufacture and sell APIs to customers globally Aim to backward-integrate 70%+ core molecules in next 5 years A Essential for our competitive advantage 225+ active DMFs, 55+ products in pipeline 2 API+ Key to leveraging our Institutional & B2B s
Slide 20: Scaling-up current Biosimilars
Biologics - We are scaling-up to build a global Biosimilars business in Horizon-1 and CGT and CDMO in Horizon-2 ❑ We are building a Global biosimilars business with Highly Regulated Market Approvals focused on development of Monoclonal Antibodies and complex fusion proteins Scaling-up current Biosim
Slide 21: Doubling down on innovative work on cancer through Aurigene Oncology
We are doubling down on our innovative work on cancer with the mission of conquering cancer through our subsidiary Aurigene Oncology 80+ 19+ 20+ 350+ 200+ Under Discovery Years of Scientists NCE patents clinical devp. projects exp. Healthy product pipeline in discovery and clinical development • Our
Slide 22: The Industry is facing a shift and we are investing to lead
The Industry is facing a shift and we are investing to lead Our Approach: Anchored in Fulfills an Meaningful End-to-End Right to Win our Purpose unmet need opportunity disease thinking Horizon 2 areas Scaling-up New spaces Immuno-oncology Nutraceuticals Differentiated Preventive & Primary NCEs Formu
Slide 23: Sustainability
Sustainability
Slide 24: Our sustainability journey
Our sustainability journey First materiality ESG goals for 2030 First sustainability assessment Made sustainability core to report Set our Environmental Delivering Good Health & our purpose and strategy, Dr. Reddy’s began Commitment Statement going beyond strengthened our voluntary disclosures (ECS)
Slide 25: Our ESG goals
Our ESG goals Transforming to build a sustainable future Being committed to environmental Making our products accessible Contributing to a fairer and more stewardship and affordable for patients socially inclusive world Reducing carbon emissions Access Equity, diversity and inclusion • 100% renewabl
Slide 26: Our credentials
Our credentials Aligned to global frameworks Global positioning
Slide 27: Recognition for our work
Recognition for our work Strong ESG positioning Building on governance ▪ Won the Gold Shield in our category from the Institute of Chartered ▪ Featured in the top 10 global pharma companies scoring 74/100 Accountants of India (ICAI) for Excellence in Financial Reporting for in the 2022 S&P Global’s
Slide 28: Thank You
THANK YOU 28 Classification | PUBLIC PROPRIETARY
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