Slide 1: Cover letter to stock exchanges
October 21, 2022 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
Slide 2: Q2 & H1 FY 2023 Financial Results and Business Update
Q2 & H1 FY 2023 Financial Results and Business Update October 21 , 2022 >, aurus Labs Knowledge . Innovation . Excellence
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 3 Laurus Q2 & H1 FY2023 Investor Presentation | October 21, 2022
Slide 5: Financial Overview
1 4 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 6: 1H/FY23 – Overview
1H/FY23 – Overview Strong Performance in a challenging environment Revenues ₹ 3,115 Cr ▲26% EBITDA ₹ 903 Cr ▲ 21% Summary 1H/FY23 Consolidated Financials Strong momentum delivering ₹ 3,115 Cr Revenues and 26% growth, driven by [₹Crore] 1H/FY23 1H/FY22 Y-o-Y Synthesis business Revenues 3,115 2,482
Slide 7: 1H/FY23 – Business performance
1H/FY23 – Business performance Robust delivery in Non-ARV business 1H/FY23 Segment Performance Highlights [₹ Crore] 1H/FY23 1H/FY22 Y-o-Y FDF 498 1,016 -51% Formulation (FDF) 1,263 1,076 17% Decline by 51%, essentially impacted from continued weak procurement from Global APIs agencies. Expecting r
Slide 8: Summary Quarterly Performance
Summary Quarterly Performance Resuming to growth trajectory Revenues EBITDA & Margins % 1,539 1,576 700 38.0% [₹ Cr] 33.6% 33.8% 31.3% 28.9% 28.2% 27.9% 29.5% 28.5% 1,412 1,425 600 33.0% 1,288 1,279 477 454 449 433 28.0% 1,203 500 400 398 348 23.0% 400 1,029 290 18.0% 300 13.0% 200 8.0% 100 3.0% 0 -
Slide 9: Financial Performance 2Q/FY23
Financial Performance 2Q/FY23 Retaining strong operational performance Revenues ₹ 1,576 Cr ▲31% EBITDA ₹ 449 Cr ▲ 29% Summary 2Q/FY23 Consolidated Financials Revenues: up 31% YoY driven by Synthesis Business [₹Crore] 1Q/FY23 2Q/FY23 2Q/FY22 Y-o-Y Q-o-Q Revenues 1,539 1,576 1,203 31% 2% Strong CD
Slide 10: Business review & Strategy
2 9 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 11: Business Performance 2Q/FY23
Business Performance 2Q/FY23 2Q/FY23 Segment Performance Highlights [₹ Crore] 1Q/FY23 2Q/FY23 2Q/FY22 Y-o-Y Q-o-Q Formulation (FDF): Declined 70%, primarily impacted by softening FDF 349 149 495 -70% -57% demand and excess inventory led depressed pricing. Recovery APIs 583 680 527 29% 17% expected
Slide 12: Generic FDF
Generic FDF ARV business led decline; better H2 offtake Revenue Growth Global Filings 495 [₹ Cr] 491 ROW 39 15 54 373 349 Canada 11 6 17 ▼ 70% Y-o-Y Approved ▼ 57% Q-o-Q Pending 149 EU 10 1 11 US 26 8 34 2Q 3Q 4Q 1Q 2Q FY22 FY22 FY22 FY23 FY23 * Includes 12 Tentative approvals in US FDF revenues d
Slide 13: Generic APIs
Generic APIs +29% driven with unprecedented growth in Other API, further supported by sustained ARVs rebound Revenue Growth API Sales mix ARV API Other API Onco API 680 [₹ Cr] 583 14% 13% 11% 7% 539 20% 527 22% 24% 33% 424 32% ▲ 29% Y-o-Y 32% ▲ 17% Q-o-Q 64% 65% 60% 48% 55% 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1
Slide 14: CDMO - Synthesis
CDMO - Synthesis Over 3x growth and another Record quarter Key Comments Timelines & Flexibility IP Protection Another strong quarter for CDMO amid continued favorable market Foundation conditions; Increased revenues by +365% YoY to ₹ 720 cr for Q2, supported Integrated Service Capability – From pr
Slide 15: Laurus Bio - Bio business
Laurus Bio - Bio business Revenue Growth Key Comments 35 [₹ Cr] 30 Largely stable and clocked Q2 sales of ₹ 27 cr. H1 sales up 43% 26 27 25 Fully operational benefits of new capacities to reflect through FY23 ▲ 4% Y-o-Y Focus on Improving Products offering and Go-to-market by leveraging ▼ 10%
Slide 16: R&D focus – strong product pipeline
R&D focus – strong product pipeline US/EU pipeline by Addressable market $ 44 bn Product Specific Approach based on Complexity and Scale 60% Non-ARV Growing R&D pipeline with Addressable market at US$ $ 21bn 40bn+ (>60% of opportunity in Non-ARVs space) ~65% Non-ARV Multiple First-to-file oppo
Slide 17: Execution driven by strong R&D platform
Execution driven by strong R&D platform R&D spent & Filing trend H1 R&D spend at ₹ 98 cr (3% to Sales) 46 54 60 61 73 74 ◄ 10% 500 DMFs 450 9 19 26 27 31 34 ◄ US ANDAs DMF filings as on date: 74 400 350 7% Continued Investment of ~4% of the Revenues; with 300 202 Focus on Complexity 250 6% 6%
Slide 18: Robust Regulatory track and Quality Foundation
Robust Regulatory track and Quality Foundation Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Year Last US FDA – Facility Regulatory Certifications audits (since started Inspection status inception) 2021 – USFDA Robust Quality Culture that achieves both Quality and Kilo Lab –
Slide 19: 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 •API, CDMO - Synthesis •FDF & API • 334 reactors with 1,240 KL capacity • 10 bn Tablets/Caps
Slide 20: 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 21: Investments over past 12 months and Future Projects update
Investments over past 12 months and Future Projects update Capacity expansion continued to accelerate Division Location Status & Capacity Operational Vizag Unit 2 - 4 billion units (New building) Formulation Formulation Vizag Unit 2 - 1 billion units (De-bottlenecking) New capacities brought o
Slide 22: ESG Standards & Recognitions
ESG Standards & Recognitions | Adopting best practices for better future Approach Accreditation & Progress Well recognized by multiple agencies Sustainability approach built in our Core Value Framework to support longer value creation “BBB” rating by MSCI ESG Ratings – among top 20% of Global
Slide 23: Outlook & Guidance
3 22 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 24: We continue to fundamentally diversify our Segment mix
We continue to fundamentally diversify our Segment mix FY 2017 (IPO) FY 2022 (By Segment) Revenues: ₹ 1,905cr Revenues: ₹ 4,936cr Bio, 2% Revenues CAGR: 21% Onco & EBITDA CAGR: 27% Other APIs, 16% ARV apis, 25% Synthesis, Retain FY25/26 goal of ~25% 19% revenues from Synthesis ARV api * 80% New te
Slide 25: Outlook FY2023 & year ahead
Outlook FY2023 & year ahead Business Segments Business Segments Growth Outlook Consolidate market share gains in ARV portfolio despite continued pricing challenges Creating niche product pipeline for the developed markets backed by in-house API strength Formulations Strong DM pipeline >US$40bn
Slide 26: Updated FY2023 target
Updated FY2023 target We are on track to deliver a strong underlying Revenue and EBITDA growth in FY2023. However, based on current visibility we are anticipating achievement of ~ 90 % from the earlier guidance range of Strong double digit US$ 1bn FY23 Revenue target (US$INR=72) Revenue growth O
Slide 27: Laurus Priorities FY2023
Laurus Priorities FY2023 Continued focus on delivering growth and operational excellence for long-term success Business Deliver on Investment projects to support diversified growth Minimize supply chain challenges and accelerate efficiency Widen technology portfolio and access new market oppor
Slide 28: Recognition and Accolades
Recognition and Accolades Golden Peacock Award Most Promising company of Great Place to Work: Fourth Year 2021 consecutive time in a study conducted For Excellence in Corporate by the Great Place to Work® Institute Governance 2020 Awarded by CNBC-TV18 Indian Business Leader Awards India Pharma Leade
Slide 29: Corporate Structure and Shareholding Details
Corporate Structure and Shareholding Details Corporate Structure • All are 100% Subsidiaries except Laurus Labs Limited Laurus Bio (Basic : 76.60%, Diluted : 74.37% ) and ImmunoACT Partly paid (Basic: 18.94%, Diluted 18.20%) India ImmunoACT Fully paid (Basic: 27.57%, Diluted 26.62%) Based on paid up
Slide 30: Conference Call Details
Conference Call Details Results conference call on Friday – October 21, 2022 at 5:00 PM IST Details of the conference call are as follows Location Dial-In Details Conference dial-in Universal Dial-In +91 22 6280 1342 India Local access Number +91 22 7115 8243 Available all over India Singapore 800 1
Slide 31: 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,