Slide 1: Cover letter to stock exchanges
April 25, 2024 To To The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai – 400001 Mumbai – 400 051 Code: 540222 Code: LAURUSLABS De
Slide 2: FY 2024 Financial Results and Business Update
FY 2024 Financial Results and Business Update April 25 , 2024
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 Corporate Overview 2 Financial Overview 3 Business Review & Strategy 4 Outlook 3 Laurus Q4 & Full Year FY2024 Investor Presentation | April 25, 2024
Slide 5: Corporate Overview
Corporate Overview 4 Laurus Q4 & Full Year FY2024 Investor Presentation | April 25, 2024
Slide 6: Full Year 2024 in numbers
FY 2024 Underlying performance Full Year 2024 in numbers Q4 5,041Cr 51.7% 7,762 1,113 1,440Cr Revenues in ₹ Gross Reactor Quality Revenues in ₹ -17% Margin Volume in KL audits +4% +9% ex-PO2 delivery 798Cr 1 700Cr 6,735 2,458 259Cr 16% CAPEX in ₹ Employees R&D & 18% EBITDA Margin 14% of Revenues Qua
Slide 7: FY 2024 – Putting strong base to deliver future growth
FY 2024 – Putting strong base to deliver future growth and operational excellence Strong customer interest in Laurus technology offerings (Hydrogenation, Flow chemistry, Biocatalysis, and large commercial capacity) and healthy NCE pipeline progress. Delivering on multiple RFPs involving higher che
Slide 8: Board reorganisation considering growth potential and succession planning
Board reorganisation considering growth potential and succession planning 1 Existing (Executive director) New additions * Mr. Shirish Arya Director – Corporate Strategy and BD Mr. Shirish Arya is currently the founder and chairman of Dr. Lakshmana Rao Mint Hotels, a leadingMs.chain Soumya Chava of b
Slide 9: Committed to Strong Corporate Governance w/45% Independent Board
Committed to Strong Corporate Governance w/45% Independent Board 2 Existing members New members* New Board Composition adds to diverse thought leadership enabling Resilient for long-term 55% Board specializing in Mr. Karnam Sekar pharmaceutical industry experience Mrs. Aruna Bhinge Dr. Rajesh Koshy
Slide 10: Business Division – Strong cumulative performance with Broad Portfolio of Customer
Business Division – Strong cumulative performance with Broad Portfolio of Customer Revenues % FY24 CAGR FY19-24 Diversified portfolio of Customers API Revenue by Location Revenue by Customers 51% -2% 6% 1 Active pharma ingredients ROW N.America Top 10 17% 40% CDMO 24% ^ 26% 56% 2 Contract Developmen
Slide 11: FY 2024 Resilient growth ex-PO while margins nearing inflection
FY 2024 Resilient growth ex-PO while Negative impact in Margins nearing inflection Base business grew adjusted for one-time PO impact GPM healthy; Margin decline from asset underutilization Covid-19 Purchase order (PO) impact GPM resilient despite sharp fall in CDMO mix, implying strong financial he
Slide 12: FY22-24 Capex Optimisation underway to support medium-term growth
FY22-24 Capex Optimisation underway to support medium-term growth Laurus asset turns is low and is Growth project portfolio (by phase) Optimisation underway expected to reach optimal levels 2 Indicative $100mn CDMO investments ongoing # Large projects by phase 2 Indicative ₹ 2,600 Cr Dedicated AH
Slide 13: Delivering our existing CDMO growth projects
Delivering our existing CDMO growth projects Vizag (LSPL-U2 multiple Mfg block operational in FY24, LSPL-U4 build up ongoing) CDMO R&D Hyderabad (to be opened in June’24) ETP plant Total Area: 65 Acre LSPL-U4 site1 u/construction Potential Future sites MB 4 (product MB 3 u/construction optimisation
Slide 14: Diversifying underlying business growth, backed by Integrated model
Diversifying underlying business growth, backed by Integrated model Healthy revenue growth through robust model Continued diversification of our business mix FY 18 FY 24 160 ₹ 2,056 Cr ₹ 5,041Cr 727 [₹ Crores] 438 5,041 3% 18% 658 1002 9% 50% 2,056 ARV 20% +16% CAGR 73% ARV API (Onco+Others) FDF (no
Slide 15: ARV business stabilised; well positioned to retain market share
ARV business stablised; Well positioned to retain market share despite industry challenges Stabilizing ARV sales ~ ₹25bn in medium-term Easing channel stock driving price normalization. Stable demand across 3,296 Post covid ARV de- API FDF - % to Sales TLD1 with global Clients 2,883 stocking & pri
Slide 16: Growing network of 'D+M' Sites across 12 Sites
Growing network of ‘D+M’ Sites with increasing Capacities across 12 Sites India, Visakhapatnam A F Unit-1, Parawada Unit-3, Parawada Unit-5, Parawada Unit-2, Atchutapuram Unit-4, Atchutapuram Unit-6, Atchutapuram LSPL-1,Parawada LSPL-2, Atchutapuram 1,279 KL A C 2,317 KL A R 161 KL ^ C 10Bn units, 1
Slide 17: Evolving R&D – Delivering on customer focused sustainable solution
Evolving R&D – Delivering on customer focused sustainable solution Progress Technology advancements Process science Pivotal R&D platform Growing Focus on small molecules Commercial scale Continuous flow reaction Qualified alternate flow-techniques (plug-flow qualified (CFR) & micro channel) for the
Slide 18: Proven track record of Global standard Quality systems
Proven track record of Global standard Quality systems Laurus Philosophy “One Quality Standard for All Markets” Last US FDA inspection # Regulatory audit & Share of audit from top Global Regulators1 Key Regulatory # audits (since Facility Date EIR* Status Certifications inception) 47 # Total Regulat
Slide 19: Strategic Investment – Journey towards breakthrough technologies
Strategic Investment – Our Journey towards Delivering breakthrough technologies Technologies Collaboration and Key updates Mar’24 – 28,000sft site for GLP lab under-construction ( Vectors/Gene Gene products) - expect to operate phase 1 by end of FY25. New CSO identified Therapy 26% Jun’23 – In-licen
Slide 20: Updates from our Investment in ImmunoAct Cell Platform
Additional Significant Updates from our Investment in ImmunoAct Cell Platform Updates >50 Hospital Partnered Increased equity ownership to ~34% in ImmunoACT NexCAR19 Commercially Rolled out in Dec 2023 >100 Collaboration with leading oncology centers across India Successful Infusions both in B
Slide 21: Making progress on ESG agenda for long term success
Making progress on ESG agenda for long term success Recognition from major global ESG rating agencies, including S&P Global, MSCI SBTi Committed Dec-23 Signed GHG commitment with Science Based Targets Initiative (SBTi) in Dec – 2023 Consecutive “BBB” rated by MSCI ESG Ratings in FY22,23 and 24
Slide 22: Financial Overview
Financial Overview 21 Laurus Q4 & Full Year FY2024 Investor Presentation | April 25, 2024
Slide 23: FY 2024 – Financial Performance
FY 2024 – Financial Performance Robust business model delivers steady Core growth with Resilience in Gross margins FY24 Consolidated Financials Comments [₹Crore] FY24 2 FY23 1 Y-o-Y Delivers resilient performance ex-PO, with ₹ 5,041 Cr Revenues and 51.7% gross Revenues 5,041 6,041 -17% margins. Ex
Slide 24: FY 2024 - Business Performance
FY 2024 - Business Performance Core growth of 9% (ex-PO^) driven by strong FDF, CDMO and BIO with softer performance in API FY24 Divisional Performance Formulation (FDF) Increased +24%, boosted by stablising ARV business and continued volume led [₹ Crore] FY24 FY23 ^ Y-o-Y growth in developed mark
Slide 25: FY 2024 – Financial Position
FY 2024 – Financial Position FY24 Balance sheet Increase in net fixed assets [₹Crore] FY24 FY23 Y-o-Y Increase mainly in property, plant and equipment towards CDMO business i.e Net Fixed assets (incl. CWIP) 4,048 3,700 +348 investments in new R&D center (Hyderabad) and Intermediate/API manufacturi
Slide 26: Financial Performance 4Q/FY24
Financial Performance 4Q/FY24 All business supporting strong sequential recovery 4Q/FY24 Consolidated Financials Comments [₹Crore] 3Q/FY24 4Q/FY24 1 4Q/FY23 Y-o-Y Q-o-Q Revenues : ₹ 1,440 Cr, increased 4% Y/Y and +21% Q/Q, driven by continued Revenues 1,195 1,440 1,381 +4% 21% strength in FDF and
Slide 27: Summary Quarterly Performance
Summary Quarterly Performance Revenues EBITDA & Gross Profit Margins % [₹ Cr] Core Covid-19 PO [₹ Cr] 900 57.6% 58.0% 55.1% 53.4% 54.3% 800 50.6% 52.5% GPM % 1,576 49.7% 49.8% 48.0% 1,539 1,545 700 1,440 1,381 600 38.0% 29.5% 28.5% 1,182 1,224 1,195 500 26.1% 20.8% 28.0% 400 18.0% 300 14.2% 15.4% 15
Slide 28: Business Review & Strategy
Business Review & Strategy 27 Laurus Q4 & Full Year FY2024 Investor Presentation | April 25, 2024
Slide 29: Business Performance 4Q/FY24
Business Performance 4Q/FY24 4Q/FY24 Segment Performance Formulation (FDF): Continued volume led ARV recovery + stable [₹ Crore] 3Q/FY24 4Q/FY24 4Q/FY23 Y-o-Y Q-o-Q pricing despite market challenges together with New launches in US and increased share in established portfolio supporting growth FDF
Slide 30: FDF
FDF On-going volume ramp-up driving strong growth Revenue Growth Global Filings +24% [₹ Cr] ROW 49 15 64 1,414 Y-o-Y ▲ 9% 1,140 Q-o-Q ▲ 17% Canada 15 7 22 Approved Pending EU 14 4 18 393 367 430 285 332 US 32 8 40 FY23 FY24 4Q 1Q 2Q 3Q 4Q FY23 FY24 FY24 FY24 FY24 * Includes 14 Tentative approvals in
Slide 31: Strategic KRKA JV focus to bring complementary capabilities
Strategic KRKA JV focus to bring Best in class Complementary capabilities Great opportunity to utilise our integrated manufacturing capabilities and KRKA extensive pipeline in innovative KRKA Laurus Labs generics of +170 pipeline products (CVS, CNS, GI, Diabetic) Strong financials Manufacturin
Slide 32: APIs delivers 30% sequential growth
APIs Delivers 30% sequential growth, supported across franchise – Increasing efficiency to offset low prices Revenue Growth API Sales mix -2% [₹ Cr] 9% 18% 19% 15% 20% Y-o-Y ▲ 4% 23% 2,609 2,545 24% 22% 25% 33% Onco API Q-o-Q ▲ 30% Other API ARV API 68% 61% 59% 55% 714 629 745 49% 597 574 4Q 1Q 2Q 3
Slide 33: CDMO - Synthesis
CDMO - Synthesis Generating Value for our Customers and Business through Operational excellence Enabling Technologies & Clinical Commercial Life Cycle Diversifying Addressable Manufacturing Platform (Ph I, II and III) (DS/DP) management markets >70 Active projects (across value chain) 10 commercial
Slide 34: Continued operational and commercial improvements
Continued operational and commercial improvements Revenue Growth (CDMO-Synthesis) Comments 2,167 [₹ Cr] Demand for LL’s offerings in API development and clinical and large commercial manufacturing held firm FY24 strong momentum reported ex-PO +24% revenue growth Strong growth +24% ex-PO Y-o-Y ▲
Slide 35: BIO
BIO On-going positive market demand Revenue Growth Comments +28% [₹ Cr] 160 Y-o-Y ▼ 37% Bio Offering experienced ongoing positive market demand 125 Q-o-Q ▼ 31% Full year stronger than expected growth despite transitionary low Q4 (due to customer order cyclicality) 46 50 42 Strong Traction in C
Slide 36: R&D: Focused approach to pipeline built up have continued
R&D: Focused approach to pipeline built up have continued R&D spent & Filing trend US Filings by Therapy Mix 60 61 73 79 83 DMFs 500 26 27 31 37 40 6% ANDAs 15% Para IV: 17 450 4.8% FTFs: 11 400 5.7% 3.8% 4.1% 3.5% 8% 350 300 1 Total Filed 50% 241 13% 40 250 202 211 184 200 160 150 15% 100 * Total f
Slide 37: Continued focus on the EHS during FY 2024
Continued focus on the EHS during FY 2024 Collaborated with DSS+* and implemented SANKALP initiative to transform Safety culture – Phase 1 completed and gearing for Phase 2 Multiple Manufacturing units bagged the CII AP Industrial Safety Excellence Awards 2023 (Unit 2, Unit 4 and 5) Unit-4 rec
Slide 38: Outlook
Outlook 37 Laurus Q4 & Full Year FY2024 Investor Presentation | April 25, 2024
Slide 39: FY 2025 – Unlock sustainable and Profitable growth
FY 2025 – Unlock sustainable and Profitable growth While factoring headwinds in cyclical parts of portfolio Growth in FY 2025 driven by: Revenues Base business PO Indicative FY25 - Not to scale Leverage recognized platform capabilities to deliver Medium to long term contracts and commercial oppo
Slide 40: Financial Highlights FY 2019-24
Financial Highlights FY 2019-24 Revenues EBITDA & Gross Profit Margins % [₹ Cr] 3,000 [₹ Cr] +9% excluding Covid-19 PO 55.2% 55.5% 54.1% 55.0% GPM % 2,500 51.7% 50.1% 46.1% 45.0% 2,000 32.7% 26.4% 29.1% 35.0% 1,500 15.8% OPM % 6,041 25.0% 4,936 5,041 1,000 4,814 20.1% 1573 1594 1436 500 16.2% 15.0%
Slide 41: Earnings call details
Earnings call details Laurus Labs Results Conference Call to be held on Thursday, 25th April 2024 at 5:00 PM IST Dial – In – Details Universal Dial-In +91 22 6280 1342 Click below to Express Join with India Local access Number +91 22 7115 8243 Diamond Pass Singapore 800 101 2045 Click here to regist
Slide 42: About Laurus Labs
About Laurus Labs Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company with an aim to improve the quality of life for millions around the world. We have a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, on