Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q2 FY2022 Earnings Presentation
35 slides from Laurus Labs's earnings presentation, Oct 28, 2021
Slide 1: Cover letter to stock exchanges
Laurus Labs Limited Corporate Office 2nd Floor, Serene Chambers. Road No. 7 Banjara Hills, Hyderabad - 50003~. Telangana. India T +91~0 6659 ~333, 3980 ~333, 23~2 0500 I 501 AURUS Labs F +91 ltO 6659 lt320 I 3980 Lt320 Knowledge . Innovation . Excellence October 28, 2021 To To The Corporate Relation
Slide 2: Q2 FY 2022 Financial Results and Business Update
Q2 FY 2022 Financial Results and Business Update October 28 , 2021
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 4 Appendix 3 Laurus Q2FY22 Investor Presentation | October 28, 2021
Slide 5: Financial Overview
Financial Overview 1 4 Laurus Q2FY22 Investor Presentation | October 28, 2021
Slide 6: Financial Performance 2Q/FY22
Financial Performance 2Q/FY22 Favorable margin in base drives muted Profit growth Revenues ₹ 1,203 Cr ▲6% YoY EBITDA ₹ 348 Cr ▼8% YoY 2Q/FY22 Consolidated Financials Key Highlights [₹Crore] 1Q/FY22 2Q/FY22 2Q/FY21 Y-o-Y Q-o-Q Revenue from operations has grown 6% YoY. Growth driven by Revenues 1,27
Slide 7: Summary Quarterly Performance
Summary Quarterly Performance Consistent delivery 700 38% [₹ Cr] 1,412 33% 34% 34% 33% 31% 600 1,288 1,279 29% 477 29% 28% 1,203 433 500 1,139 23% 379 400 23% 400 21% 348 974 284 18% 300 839 193 13% 200 150 730 8% EBITDA 100 3% Revenues & Margins % 0 -2% 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 8: Business review & Strategy
Business review & Strategy 2 7 Laurus Q2FY22 Investor Presentation | October 28, 2021
Slide 9: Business Performance 2Q/FY22
Business Performance 2Q/FY22 FDF & Synthesis business tracking healthy 2Q/FY22 Segment Performance Key Highlights [₹ Crore] 1Q/FY22 2Q/FY22 2Q/FY21 Y-o-Y Q-o-Q Formulation (FDF): Witnessed +10% growth YoY driven by the ARV FDF 521 495 452 10% -5% segment for LMIC region and developed market sales
Slide 10: Generic FDF
Generic FDF Stable Core business ▲ 10% Y-o-Y [₹ Cr] ▼ 5% Q-o-Q ROW 22 9 31 521 495 452 430 430 Canada 10 5 15 Approved Revenue Global Filings Growth Pending Progress EU 5 6 11 US * 18 12 30 2Q 3Q 4Q 1Q 2Q FY21 FY21 FY21 FY22 FY22 * Includes 9 Tentative approvals in US Key Highlights FDF business r
Slide 11: Generic APIs
Generic APIs Recovery in Other APIs undercompensate ARV API decline ▼ 8% Y-o-Y [₹ Cr] ▼ 4% Q-o-Q ARV API Other API Onco API 797 731 15% 9% 8% 11% 14% 14% 21% 14% 571 549 19% 22% 527 Revenue API revenues Growth mix 77% 71% 75% 66% 64% 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q FY21 FY21 FY21 FY22 FY22 FY21 FY21 F
Slide 12: CDMO - Synthesis
CDMO - Synthesis Accelerating our focus Key Highlights [₹ Cr] ▲ 34% Y-o-Y ▼ 21% Q-o-Q 195 Synthesis business maintained its robust growth and delivered growth of 34% YoY 176 155 during the quarter to ₹ 155 cr. For 1HFY22, CDMO business grew at 62% (13% of 127 total revenues vs. 10% last year) 116
Slide 13: Laurus Bio - Bio business
Laurus Bio - Bio business Business integration & New capacities broadly on track [₹ Cr] 26 180KL fermentation capacity partially commissioned Acquiring additional land for creating Revenue 14 1MN liters fermentation capacity Growth 9* Leveraging Parent’s existing Global Partnership and strong
Slide 14: R&D Focusing to create a Value Centric Portfolio
R&D Focusing to create a Value Centric Portfolio ◄ DMFs ◄ US ANDA $ 38 bn R&D spend & Filing trend (US/EU 80% /Canada) Non-ARV US/EU $ 12bn pipeline by ~25% Non-ARV Addressable market 75% ARV 20% ARV Approved (35)^ Pending/Underdevelopment (66) ^ Including Tentative Continue to allocate critical res
Slide 15: Healthy Regulatory track with unwavering commitment to Quality
Healthy Regulatory track with unwavering commitment to Quality Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Start Last US FDA – Facility Regulatory Certifications audits (since Year Inspection status inception) 2021 – Facility Kilo Lab USFDA, TGA, KFDA, PMDA, Assessment compl
Slide 16: Fundamentally - Diversified our Segment mix
Fundamentally - Diversified our Segment mix Further Intensifying the Transformation drive FY 2017 FY 2021 (IPO) (By Segment) Revenues: ₹ 1,905cr Revenues: ₹ 4,813cr Revenues CAGR: 21% Onco & Integrated Business Approach EBITDA CAGR: 32% Other API+, 16% to create value ARV api, 39% Synthesis, 11%
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 •FDF & API •API, CDMO - Synthesis • 6 bn Tablets/Capsules per year) • 328 reactors with 1,22
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: Capacity Progress
CAPEX Investments – An overview of on-Going Projects Re-investing to support Long term growth Expansion Type Division Location Status & Capacity Operational Timelines Brownfield Formulation Vizag Unit 2 - 4 billion units (New building) Completion by Mar 22 Brownfield Formulation Vizag Unit 2 - 1 bil
Slide 20: Laurus Vision
Laurus Vision “To become a leading player in offering integrated solutions to global pharmaceutical needs in creating a healthier world” Our Values KNOWLEDGE I N N OVAT I O N EXCELLENCE CARE INTEGRITY 19 Laurus Q2FY22 Investor Presentation | October 28, 2021
Slide 21: Board of Directors
Board of Directors Strong Governance Standard from a diverse board Dr. M. Venu Gopala Rao Dr. Satyanarayana Chava Mr. V V Ravi Kumar Non-Executive Chairman & Independent Director Executive Director & Chief Executive Officer Executive Director & Chief Financial Officer Key Expertise: General Manageme
Slide 22: Key Management Team
Key Management Team Driven by credible expertise Dr. V Uma Maheswer Rao Mr. Srinivasa Rao S Mr. Krishna Chaitanya Chava EVP – Chemical R&D EVP – Manufacturing & Operations EVP - Synthesis Division Key Expertise: Extensive experience in process R&D, Key Expertise: +27 years experience in production K
Slide 23: ESG Standards & Sustainability (1/2)
ESG Standards & Sustainability (1/2) Adopting best practices for better future Environment Social Governance Our Approach to Sustainability is embedded in our Core Value Framework. We are committed to creating value for our stakeholders through careful management of resources against focused priorit
Slide 24: ESG Standards & Sustainability (2/2)
ESG Standards & Sustainability (2/2) Strictly comply with the Environmental Protection Law and other EHS regulations Sustainability initiatives are accredited by multiple agencies including MSCI* (Global leader in ESG Ratings) Rated “A” by MSCI ESG Rating - puts us among top 18% of global phar
Slide 25: Outlook & Guidance
Outlook & Guidance 3 24 Laurus Q2FY22 Investor Presentation | October 28, 2021
Slide 26: Outlook FY2022 & Ahead
Outlook FY2022 & Ahead Business Moats Key Segment Outlook & Enablers 1 Renewed market share gains in ARV portfolio in LMIC Integrated Approach Market share growth in US launched products & Create differentiated generic pipeline for the Solid execution & Trust from Formulations developed mark
Slide 27: Laurus Priorities FY2022
Laurus Priorities FY2022 Accelerating action for value creation 1 Business Proactive portfolio de-risking, enhanced procurement and operational efficiency Integrating & leveraging Richcore acquisition Widen technology portfolio and access new market opportunities Strengthen position with Big
Slide 28: Appendix
Appendix 4 27 Laurus Q2FY22 Investor Presentation | October 28, 2021
Slide 29: 1H/FY22 – Results summary
1H/FY22 – Results summary Sustaining healthy growth Revenues ₹ 2,482 Cr ▲17% EBITDA ₹ 748 Cr ▲13% 1H/FY22 Consolidated Financials Key Highlights [₹Crore] 1H/FY22 1H/FY21 Y-o-Y Revenue from operations has grown at healthy 17% YoY. Driven by Revenues 2,482 2,113 17% sustained momentum across all bus
Slide 30: 1H/FY22 – Business performance
1H/FY22 – Business performance 1H/FY22 Segment Performance Key Highlights [₹ Crore] 1H/FY22 1H/FY21 Y-o-Y Formulation (FDF): Reported strong growth of +26% YoY. Continued FDF 1,016 804 26% tendering upside in ARVs, and market share expansion along with new 1,076 1,093 -2% launches in Developed mar
Slide 31: 15 years of patience, diligence and perseverance
15 years of patience, diligence and perseverance Capabilities 2006-11 2011-16 2016-21 Pharmaceutical Company transformation ARV APIs API company company Team strength 883 2,266 4,808 No of Scientist at R&D 400+ 500+ 750+ Manufacturing Units 1 (FDA compliant) 2 (FDA) 8 (5 FDA) Reactor volume (KL) 220
Slide 32: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate All are 100% Subsidiaries except Laurus Structure Laurus Labs Limited Bio* India Laurus Synthesis Laurus Generics SA *Laurus Bio (earlier Sriam Labs Pvt Ltd Laurus Holdings Ltd Pvt. Ltd (PTY) Ltd Richcore) 74.4% ^ Laurus Synthesis Inc USA is ^La
Slide 33: Recognition from Industry
Recognition from Industry Great Place to Work Golden Peacock Award Most Promising company of Year 2021 For the third consecutive time in For Excellence in Corporate a study conducted by the Great Governance 2020 Awarded by CNBC-TV18 Indian Place to Work® Institute Business Leader Awards India Pharma
Slide 34: Conference Call Details
Conference Call Details Results conference call on Friday October 29, 2021 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 1148 India Local access Number +91 22 7115 8049 Available all over India Singapore 800 10
Slide 35: 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,