Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY

Dr. Reddy's Laboratories — FY2010 Earnings Presentation

15 slides from Dr. Reddy's Laboratories's earnings presentation, May 6, 2010

  1. Slide 1: FY10 & Q4 FY10 Results Update

    FY10 & Q4 FY10 Results Update May 6, 2010

  2. 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

  3. Slide 3: Consolidated Key Financial Highlights

    Consolidated Key Financial Highlights  FY10 Revenues at Rs. 7,028 crs ; YoY growth of 1%  Q4 FY10 Revenues at Rs. 1,642 crs  FY10 Adjusted EBITDA at Rs. 1,584 crs ; YoY growth of 4%  Q4 FY10 Adjusted EBITDA at Rs. 352 crs  FY10 Adjusted PAT at Rs. 921 crs ; YoY growth of 10%  Q4 FY10 Adjusted

  4. Slide 4: P&L FY10 & Q4 FY10

    P&L  FY10 & Q4 FY10 All figures in Rs. Crs. except EPS FY10 FY09 Gr% Q4 FY10 Q4 FY09 Gr% Revenue 7,028 6,944 1% 1,642 1,985 -17% Gross Profit 3,634 3,650 0% 864 1,077 -20% % to sales 52% 53% 52% 54% SG&A 2,251 2,102 7% 581 527 10% % to sales 32% 30% 35% 27% R&D 379 404 -6% 95 114 -16% % to sales 5%

  5. Slide 5: Key Balance Sheet Items

    Key Balance Sheet Items Rs. Crs. Mar 10 Mar 09 Cash & Cash Equivalents 658 560 Trade & Other receivables 1,196 1,459 Inventories 1,337 1,323 Property, plant & equipment 2,246 2,088 Loans & borrowings (current & non current) 1,470 1,970 Trade accounts payable 664 599 • Amongst the best managed workin

  6. Slide 6: Key Business Updates

    Key Business Updates  Achievement of FY10 RoCE guidance (adjusted RoCE of 17% in FY10)  Improvement in profitability driven by optimization of operating costs across organization  Year of consolidation Some major restructuring efforts:  Reduction of betapharm’s workforce by more than 200 in FY10

  7. Slide 7: Segmental Analysis: Revenues

    Segmental Analysis : Revenues Global Generics FY10 Revenues at Rs. 4,861 crs • Rs. 1,682 crs • Rs. 1,016 crs • YoY gr  (15%) • YoY gr  20% North India America Russia & Other Europe CIS • Rs. 912 crs • Rs. 964 crs • YoY gr  20% • YoY gr  (19%) 7

  8. Slide 8: Global Generics: North America

    Global Generics : North America Rs. Crs. Product Pipeline : ANDAs Sumatriptan AG 719 254 Cumulative  158 Pending approvals  73 Base business 1,266 13% 1,428 base biz Para IVs  38 FY09 FY10 FTFs  12  17  ANDA approvals (including tentative) ; 12  ANDA filings ; 8  product launches  Successfu

  9. Slide 9: Global Generics: India

    Global Generics : India ORG IMS (MAT Mar 10) Rs. Crs.  Secondary Sales Growth : 20%  Dr. Reddy’s  23% 1,016  Industry  18% 848  Top 10  20%  Dr. Reddy’s Rank  13th FY09 FY10  Crossed the Rs. 1,000 crs landmark in FY10 ; Growth largely driven by volume growth of 16% by key brands such as Ni

  10. Slide 10: Global Generics: Germany

    Global Generics : Germany Number of Tenders Won Rs. Crs. Non Vert. Int. 15 -26% 13 12 985 8 730 5 4 4 8 8 7 4 5 4 2 AOK - 1 BKK TK IKK BKK GwQ DAK - 2 KKH FY09 FY10 Spectrum Allianz - 2 K  Germany continues to be a challenging and a highly tender based competitive market  Plan to increase vertical

  11. Slide 11: Global Generics: Russia

    Global Generics : Russia Pharmexpert (MAT Mar 10) Rs. Crs.  Secondary Sales Growth : 25%  Dr. Reddy’s  21% 723 580  Industry  8%  Dr. Reddy’s Rank  16th FY09 FY10  YoY Rouble growth of 38% driven largely by price increases and by key brands such as Nise, Omez, Ketorol, Ciprolet & Cetrine  R

  12. Slide 12: Pharmaceutical Services & Active Ingredients

    Pharmaceutical Services & Active Ingredients DMFs Pipeline : Rs. Crs. 9% Cumulative  375 US  156 1,876 2,040 Europe  90 Canada  59 FY09 FY10 RoW  70  Muted growth with no major launches in FY10, as a result of global industry trends  Current order book status has shown slight improvement sinc

  13. Slide 13: Proprietary Products

    Proprietary Products  NCEs • Good traction of portfolio • Balaglitazone (Phase III asset) : Initial trial demonstrated better safety and efficacy results ; continue to await guidelines from the European regulators for the next steps  Differentiated Formulations • The pipeline includes several diff

  14. Slide 14: Outlook

    Outlook  FY11 Guidance • “Revenues in the range of $1.75 to $1.8 billion and RoCE in the range of 18 to 22%”  FY13 Goal • “Remain confident of getting close to $3 billion revenue goal by FY13”  Significant new Product Launches • Pipeline progressing well by prioritizing selection & development of

  15. Slide 15: Q&A Session

    Q&A Session May 6, 2010 LIFE , RESEARCH «. HOPE

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