Slide 1: Exchange filing cover letter for investor presentation
January 24, 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
Slide 2: Q3 & 9M FY 2024 Financial Results and Business Update
Q3 & 9M FY 2024 Financial Results and Business Update January 24 , 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 Q3 & 9M FY 2024 Investor Presentation | January 24, 2024
Slide 5: Corporate Overview
1. Corporate Overview 4 Laurus Q3 & 9M FY 2024 Investor Presentation | January 24, 2024
Slide 6: Executive Summary
Executive Summary Sustained 9M performance ex-PO, with ₹ 3,601 Cr Revenues, declined 23%. Excluding PO1, growth was 11% Strengthened Scientific and Research expertise and working towards addressing customer commercial needs and to accelerate our CDMO potential ₹ 539 Cr EBITDA resulted in a mar
Slide 7: Continued focus on growth and operational excellence
Continued focus on growth and operational excellence Continuous investment in diversified portfolio and Capex optimization underway to drive long term growth Underlying financial health of business resilient 52%+ GPM and Executing on strategic partnership. Slower Q3 to rebound Growing applicat
Slide 8: Update on Capex projects to support long term growth
Update on Capex projects to support long term growth CDMO, VTZ^ BIO, BLR^ Animal Health (AH) (LSPL-U2)- Development & Mfg. facility Precision Fermentation, AOF r-proteins Continuous investment in diversified Commercial activities started at 1st block in Oct’23 Expansion at R1 including new R&D b
Slide 9: Optimisation of FY22-24 Capex underway
Optimisation of FY22-24 Capex underway Laurus asset turns is low and is Growth Capex FY22-24 (by phase) Optimisation underway expected to reach optimal levels Indicative # Large projects by phase 2 Indicative Over 60% of the Capex into ~₹ 2,500 Cr 2 API/FDF yet to meaningfully 1,050 scale-up 1.4x
Slide 10: Strategic Investment – Journey towards Delivering breakthrough technologies
Strategic Investment – Journey towards Delivering breakthrough technologies Our Collaboration and Updates Technologies Investments Dec’23 – Started GLP lab construction for Vectors/Gene products Gene Jun’23 – In-licensed few gene therapy assets and funding support to advance clinical trials Therapy
Slide 11: R&D focus: Strong pipeline & Platform with over 2400 Scientist & Quality team
R&D focus: Strong pipeline & Platform with over 2400 Scientist & Quality team US/EU pipeline by Addressable market R&D spent & Filing trend US Filings by Therapy Mix $ 46 bn 60 61 73 79 83 DMFs Para IV: 16 500 26 27 31 37 39 6% ANDAs 15% FTFs: 11 450 4.8% $ 32 bn 400 8% 65% 350 5.7% 3.8% 4.1% 3.5% N
Slide 12: Manufacturing & Development network well Invested to meet Customer needs
Manufacturing & Development network well Invested to meet Customer needs Visakhapatnam Parawada Hyderabad Bangalore U1 U3 U5 LSPL U1 Sriam Lab R1 R2 API CDMO API CDMO^ API CDMO API Intermediates Bio-Ingredients Bio-Ingredients 336 R1 296 R & R&D 53 R 42 R + 3 AGR2 31 R 5 Fermenters & R&D 4 Fermenter
Slide 13: Unwavering Regulatory and Quality commitment
Unwavering Regulatory and Quality commitment Laurus Philosophy “One Quality Standard for All Markets” No of USFDA Year Last US FDA – Facility Regulatory Certifications audits (since started Inspection status inception) 1,075+ Quality audits since inception Kilo Lab – USFDA, TGA, KFDA, PMDA, ANVISA
Slide 14: Continue to advance on ESG agenda, supporting long-term success
Continue to advance on ESG agenda, supporting long-term success Recognition from ESG Rating agencies Signed GHG commitment with Science Based Targets Initiative (SBTi), a leading carbon footprint reduction initiative Unit-4 recognized for "Environmental Excellence" in 23rd Annual Greentech Envir
Slide 15: Financial Overview
2. Financial Overview 14 Laurus Q3 & 9M FY 2024 Investor Presentation | January 24, 2024
Slide 16: 9M FY24 – Financial Performance
9M FY24 – Financial Performance Sustained core growth + Strength in Gross margins 9M/FY24 Consolidated Financials Comments [₹Crore] 9M/FY24 2 9M/FY23 1 Y-o-Y 3,601 4,660 Revenues : ₹ 3,601 Cr, declined 23% Y/Y, impacted by particularly strong Revenues -23% CDMO-Synthesis revenues in base year, par
Slide 17: Financial Performance 3Q/FY24
Financial Performance 3Q/FY24 Underlying Demand uptrend intact 3Q/FY24 Consolidated Financials Comments [₹Crore] 2Q/FY24 3Q/FY24 1 3Q/FY23 Y-o-Y Q-o-Q Revenues : ₹ 1,195 Cr, declined 23% Y/Y, particularly from strong CDMO and Revenues 1,224 1,195 1,545 -23% -2% API revenues in base year offset by
Slide 18: 9M FY24 - Business Performance
9M FY24 - Business Performance Resilient; with 11% revenues growth ex-PO^ Formulation (FDF) 9M/FY24 Segment Performance Increased +32%, mainly driven by stabilization of ARV business and continued volume led growth in developed market portfolio. Continuing stable market outlook [₹ Crore] 9M/FY24 9
Slide 19: Summary Quarterly Performance
Summary Quarterly Performance Revenues EBITDA & Margins % [₹ Cr] [₹ Cr] 900 57.6% 58.0% 55.1% 53.4% 54.3% 800 52.0% 50.6% 52.5% GPM % 1,576 49.7% 48.0% 1,539 1,545 700 1,425 1,381 600 38.0% 27.9% 29.5% 28.5% 500 26.1% 1,182 1,224 1,195 20.8% 28.0% 400 300 14.2% 15.4% 15.3% 18.0% OPM % 200 398 454 44
Slide 20: Business review & Strategy
3. Business review & Strategy 19 Laurus Q3 & 9M FY 2024 Investor Presentation | January 24, 2024
Slide 21: Business Performance 3Q/FY24
Business Performance 3Q/FY24 Supported by FDF + Onco APIs 3Q/FY24 Segment Performance Formulation (FDF): Continued uptick in ARV (+11% Q/Q) following vol. [₹ Crore] 2Q/FY24 3Q/FY24 3Q/FY23 Y-o-Y Q-o-Q supplies while strong Y/Y (+47%) driven by low base last year + stable pricing. Underlying demand
Slide 22: FDF
FDF On-going recovery marks utilization step-up; Market dynamics stable Revenue Growth Global Filings 393 [₹ Cr] 367 ROW 48 13 61 332 285 249 Canada 14 7 21 Approved Y-o-Y ▲ 47% Pending Q-o-Q ▲ 11% EU 14 4 18 US 30 9 39 3Q 4Q 1Q 2Q 3Q * Includes 14 Tentative approvals in US FY23 FY23 FY24 FY24 FY24
Slide 23: APIs
APIs Sluggish; Q4 Tracking good volume across portfolio Revenue Growth API Sales mix 714 [₹ Cr] 12% 9% 15% 632 629 18% 19% 597 574 23% 29% 22% 24% 33% Onco API Y-o-Y ▼ 9% Other API ARV API Q-o-Q ▼ 9% 59% 68% 59% 61% 49% 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q FY23 FY23 FY24 FY24 FY24 FY23 FY23 FY24 FY24 FY24
Slide 24: CDMO - Synthesis
CDMO - Synthesis Scientific expertise working towards addressing customer commercial needs and Strategic BDs % Y/Y 9 47 32 34 37 35 62 19 95 34 63 105 272 248 78 [₹ Cr] Strong momentum ex-PO with +30% growth Consistent Revenue growth every quarter in Baseline projects except 720 for large purchase o
Slide 25: Delivering our existing CDMO growth projects
Delivering our existing CDMO growth projects LSPL-U2 Visakhapatnam, 2022 and Now CDMO R&D Hyderabad (to be opened in June’24) Focus to built diversified CDMO Total Area: 2,00,000 sft engine beside riding momentum in NCE clinical projects Fix 1.5 yr ago snap same angle Animal Health CDMO manufactur
Slide 26: BIO
BIO Demand upbeat; Strong momentum continued Revenue Growth Comments [₹ Cr] Stronger than expected momentum continued for Q3 and 9M at +90% and +65% Y/Y, led by rapid growth in CDMO services into an 50 expanding customer base 46 42 39 Overall demand environment upbeat Y-o-Y ▲ 91% Solid ferment
Slide 27: Transformation over Last 5 Years - Diversified underlying business growth
Transformation over Last 5 Years - Diversified underlying business growth Strong growth through robust model Diversification of Laurus business 125 FY 18 FY 23 ₹ 2,056 Cr ₹ 6,041 Cr 1 [₹ Crores] 1972 2% 6,041 402 36% 37% 744 742 ARV 7% 73% 18% 2,056 +18% CAGR (ex PO) + 24% CAGR on reported basis ARV
Slide 28: Leading commercial scale offering
Leading commercial scale offering Reactor Volumes Drug Product Capacity Fermentation Capacity Over 4x increase Expanded 18x since acquisition Over 5x increase 7,480 190 Reactor Capacity 10 Fermentation Oral Solids (KL) (KL) (billion) 4,638 5 1,870 2 10 220 FY06-11 FY11-16 FY16-21 FY23 FY11-16 FY16-2
Slide 29: Outlook
4. Outlook 28 Laurus Q3 & 9M FY 2024 Investor Presentation | January 24, 2024
Slide 30: FY 2024 : Sales outlook
FY 2024 : Sales outlook Sales drivers CDMO: Revenue expansion of base pipeline projects and 2H Animal health contract supplies kick-off Generics1: Growth in existing and new CMO contracts (Diabetic & CV portfolio) across key markets, Key product approvals and better visibility in ARV business Bio: R
Slide 31: Earnings call details
Earnings call details Laurus Labs Results Conference Call to be held on Wednesday, 24th January 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 reg
Slide 32: 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