Slide 1: Laurus Labs Limited Q2 & H1 FY18 Results Presentation
LAURUS LABS LIMITED Q2 & H1 FY18 RESULTS PRESENTATION 9 November - 2017
Slide 2: 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 mat
Slide 3: Business Snapshot
Business Snapshot Overview • Development, • Development and • Contract development • Sale and manufacture of manufacture and sale of manufacture of oral solid and manufacturing specialty ingredients for active pharmaceutical formulations services for global use in nutraceuticals, ingredients (APIs)
Slide 4: Strategy in Motion
Strategy in Motion ARV & HEP-C Other APIs FDFs Synthesis Ingredients • Significant increase in • Leadership in select • Leverage API • Focus on supply of • Leverage process HIV patient Oncology API. capabilities; capture key starting materials chemistry skills to population with Launching few more o
Slide 5: Transformation of Business Model
Transformation of Business Model • Commenced • Successfully listed on BSE & construction of NSE Unit 2 • Commenced operations • Set up the • Investment of • Incorporated of Unit 5 - dedicated for R&D Centre at Rs. 490 million Laurus Inc. at ASPEN IKP, in the Delaware as a • Filed first ANDA for US K
Slide 6: Capitalize on our Leadership Position in APIs
Capitalize on our Leadership Position in APIs Laurus’ Outlook Achievement Sustain leadership in GA LMICs Strong presence across WHO Market second line therapies API segment recommended 1st line treatment in Generic Target regulated market Accessible- Low & Middle opportunity post patent expi
Slide 7: Significant Investments in Generic FDF Business
Significant Investments in Generic FDF Business Filed first ANDA and WHO dossier in 2016. Leverage API production As on date filed 8 ANDAs and R&D capabilities to and in addition completed forward integrate into FDF 11 validations for Capture significant formulations. Filings Strategy operat
Slide 8: Strong R&D Capabilities
Strong R&D Capabilities “Research-first” approach – Set up Key Accreditations dedicated R&D center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 R&D team comprising 750 plus scientists (25.0% of total employee strength) including 45 PhDs Kilo Lab at R&D center
Slide 9: Quality Focus & Regulatory Audits
Quality Focus & Regulatory Audits - Laurus’ Philosophy “One Quality for all markets” Regular Inspection at different manufacturing units We maintain consistent quality, efficiency and 2017 WHO, USFDA, EU (Germany) product safety. 2016 USFDA We have adopted uniform manufacturing standards across all
Slide 10: Facilities Overview
Facilities Overview Unit-I • Located at Jawaharlal Nehru Pharma Unit-IV City, Vishakapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • 300 reactors, with 1140 Kilo Litres capacity. • Received approvals from US FDA, WHO- Geneva,
Slide 11: Management Team
Management Team Tom Versosky Chandrakanth Chereddi President FDF North America ED & Head, Generics FDF and Synthesis Dr. Prafulla Kumar Nandi SVP, Global Regulatory Ravikumar V V G Venkateshwar Reddy Affairs (Formulations) ED &CFO CS and Sr. GM – Legal & Secretarial Dr. Lakshmana Rao C V Exec .VP –
Slide 12: Corporate Governance
Corporate Governance Executive Directors Name Background Dr. Satyanarayana Chava Whole-time Director, Founder and Chief Executive Officer Dr. Raju Srihari Kalidindi Whole-time Director and Head of Generics – API & Ingredients Ravi Kumar V V Whole-time Director and CFO Chandrakanth Chereddi W
Slide 13: Efficient Use of Capital and Prudent Leverage
Established Track Record Of Delivering Growth – Efficient Use of Capital and Prudent Leverage Pre Tax Return on Capital Return on Equity(2) (%) Total Debt/Equity Ratio Employed(1) (%) (x) 41.2% 27.2% 1.5x 26.1% 31.9% 1.2x 1.1x 1.1x 16.5% 16.5% 14.5% 14.3% 17.0% 17.4% 0.7x 0.6x 12.7% 12.8% FY13 FY14
Slide 14: Business Highlights
Business Highlights Overall Generic FDF Total revenues grew by 4.3 % in this quarter despite Filed 8 ANDAs with USFDA, one dossier in Canada, one transition to GST. dossier in Europe, one dossier with WHO and one dossier in South Africa. Completed 11 products validations. R & D Opex of INR 493
Slide 15: Performance Highlights - Abridged Profit & Loss statement
Performance Highlights - Abridged Profit & Loss statement Growth % Growth % Growth % (Q2 FY18 (Q2 FY18 (H1 FY18 Particulars (Rs. mn) Q2 FY18 Q2 FY17 Q1 FY18 H1 FY18 H1 FY17 Vs. Vs. Vs. Q2 FY 17) Q1 FY 18) H1 FY 17) Total Revenues from Operations (Net) 5,386 5,165 4.3% 4,784 12.6% 10,170 9,263 9.8% T
Slide 16: Drivers of Revenue
Drivers of Revenue Revenue Contribution ARV Volumes increased on the back of 3% 3% 3% 4% 3% higher demand from all the customers. 6% 5% 7% 7% 5% 8% 8% 7% 9% 9% Oncology API sales had maintained. 8% 7% 7% 8% 9% 5% 10% 16% 15% Hepatitis C Contributions were lower 16% due to pricing pressure, Maj
Slide 17: Drivers of Earnings
Drivers of Earnings 1,250.0 EBITDA Margin (%) 22.6% 22.4% 22.1% 22.4% 1,200.0 21.6% 22.2% 1,150.0 Rs. Mn Q2 FY18 operating margins stood at 22.0% 22.1 % on the back of; 1,100.0 21.8% o Continued performance in APIs 1,050.0 with robust growth in higher 21.6% volumes in key ARV and 1,000.0 21.4% o G
Slide 18: Abridged Balance Sheet
Abridged Balance Sheet As on As on 30.09.2017 31.03.2017 Particulars (Rs. mn) EQUITY AND LIABILITIES Shareholders' funds Share capital 1,060 1,058 Reserves and surplus 12,953 12,247 Non-current liabilities 2,184 1,968 Current liabilities 13,372 11,261 Total 29,569 26,534 ASSETS Non-current assets 1,
Slide 19: Awards and Recognitions
Awards and Recognitions “API SUPPLIER OF THE “IKP Achiever Award YEAR 2017” 2017” Laurus Labs bags the Global Generics & Biosimilars Laurus Labs receives the IKP Achiever Award 2017 for “API Supplier of the Year” 2017 award. the growth it recorded during the year 2017. The award was presented to Dr.
Slide 20: Awards and Recognitions
Awards and Recognitions “BEST MANAGEMENT BUSINESS EXCELLENCE NATIONAL SAFETY AWARD 2016” AWARD 2017 AWARD 2016 BY GOVERNMENT OF Laurus Labs Limited receives "HMTV Laurus Labs Limited has bagged the ANDHRA PRADESH. Business Excellence Award 2017" National Safety Award 2016. This award being conferred
Slide 21: Ownership Structure
Ownership Structure Corporate Structure Laurus Labs Limited Laurus Synthesis Sriam Labs Pvt Laurus Holdings All are 100% Inc. Ltd. Ltd. Subsidiaries USA India UK Laurus Generics Inc. USA Shareholding pattern * 30.6% 8.5% 10.7% 1.2% 0.1% 19.9% 11.6% 17.4% Promoter Financial Non- Foreign Institutions/
Slide 22: Results Conference Call
Results Conference Call Results conference call on Friday November 10, 2017 at 3:00 PM IST Details of the conference call are as follows: Timing 3:00 PM IST on Friday, November 10, 2017 Conference dial-in Primary number +91 22 3938 1071 India Local access Number 3940 3977 Available in - Ahmedabad, B
Slide 23: Contact us
Contact us About Laurus Labs Ltd. Laurus 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, Oncology and oth
Slide 24: Thank You
Thank You