Eris Lifesciences Ltd · NSE:ERIS
Eris Lifesciences — Investor Presentation (August 2022)
35 slides from Eris Lifesciences's investor presentation, Aug 10, 2022
Slide 1: Corporate Presentation filing letter to exchanges
EY Entrepreneur of the year-2013 2013 FROST & SULLIVAN Beat Practices-2013 Badness today/YES hank Excellence Awards-2013 Eris Eris Lifesciences Limited Date: 10 August 2022 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla C
Slide 2: Corporate Presentation August 2022
Er s POWER OF EMPATHY TRUTH OF SCIENCE CORPORATE PRESENTATION AUGUST 2022
Slide 3: Business Highlights
Business Highlights Eris ▪ Founded in 2007; profitable from the second year of Revenue CAGR 12% in last 2 years operations 13,470 10,741 ▪ Only Indian listed pharmaco with a pure-play Domestic Branded Formulations model ▪ Rank 21 in IPM - Youngest among India’s Top-25 domestic branded formulation ph
Slide 4: Financial Snapshot
Financial Snapshot Eris • FY 22 Dividends as % of net profits ₹ mn ₹ mn 21% 13,470 4,850 1 20% il 1 16% Op Revenue 11.2% EBITDA 12.6% 1 yoy growth yoy growth 1 1 ₹ mn 1 4,058 PAT’ 14.3% FY20 FY21 FY22 yoy growth EPS (INR) Highlights 1sok CAGR ▪ Maintained ROIC at >= 30% over last 13 years 29.9 26.2
Slide 5: Eris Ranks among the Top-10 Fastest Growing Companies in Q1 FY23
Eris Ranks among the Top-10 Fastest Growing Companies in Q1 FY23 Eris 22.7 19.6 17.7 Eris has outperformed 16.7 the IPM by 600 bps in Q1 FY23 11.8 a 8.1 8.1 7.3 2.1 2.6 1.4 IPM MANKIND INTAS IPCA TORRENT SUN* ERIS LS GSK ZYDUS* ABBOTT* ALKEM* % Acute I , Therapy I 46% 52% 24% 66% 26% 42% I I 11% II
Slide 6: Chronic and Sub-Chronic focused therapy mix
Chronic and Sub-Chronic focused therapy ` mix Eris Contribution of Chronic + Sub-chronic vs. Acute Therapy-wise composition of revenue Others Women’s Health 11% Anti Diabetes 5% CNS 29% 7% Chronic & 81% Sub-chronic 89% Derma 8% 16% 24% Acute 19% 11% VMN Cardiac Care MAT Jun’17 MAT Jun’22 Contributio
Slide 7: Continues to Outperform in Cardiometabolic by a Significant Margin
Continues to Outperform in Cardiometabolic by a Significant Margin Eris Eris grew at 8.1% in Q1 FY 23 vs. IPM growth of 2.1%; outperformed IPM in Cardio-Metabolic, CNS, Derma & Women’s Health therapies 1 1 L IIPM Eris Cardio-Metabolic : 53% of Eris VMN : 16% of Eris 21.1 61.2 18.7 r- 5.7 12.2 14.9 1
Slide 8: Three Emerging Therapies (20% of Revenue) Growing at 25% plus p.a.
Three Emerging Therapies (20% of Revenue) Growing at 25% plus p.a. Eris IPM Eris Derma: 8% of Eris CNS : 7% of Eris Women’s Health : 5% of Eris 25.8 38.3 39.2 49.3 I 30.0 38.1 25.5 25.3 28.0 24.1 13.1 15.0 16.5 15.3 11.1 12.2 10.6 7.7 3.7 1.8 2.4 0.4 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22
Slide 9: Top-15 Power Brands Portfolio Contribute ~66% of Revenue
Top-15 Power Brands Portfolio Contribute ~ 66% of Revenue Eris Our Top 15 Mother Brands contribute ~ 66% of our revenue Blockbuster additions to power brand portfolio in the last two years MAT June’22 Sales (₹ mn) Market share GlimiSave ` 2,775 6% Z.4:&flelis Eritel 1,510 4% • Crossed INR 100+ crore
Slide 10: Strong Position in the Oral Anti-Diabetes Market
Eris Enjoys a Strong Position in the ~ INR 10,400 Crore Oral Anti-Diabetes Market Eris Eris ranks in Oral Anti-Diabetes therapy Eris has built a full-service presence in Oral Anti-Diabetes therapy with high market ranks in latest generation By Revenue* molecules (DPP4 and SGLT2 inhibitors) AIM Total
Slide 11: Leveraging the Insulin/GLP1 Opportunity with MJ Biopharm
Biopharm Eris I. Jan 2022 – Leveraging the Insulin/ GLP1 Opportunity with MJ • Leading position in Indian oral anti-diabetes • Strong credibility with Diabetologists/ Endocrinologists and Key Opinion Leaders • Deep coverage of specialists and consulting physicians in Metro and Tier-1 markets • Two b
Slide 12: Entered Dermatology Through Acquisition of Oaknet Healthcare
May 2022 – Entered Dermatology Through the 100% Acquisition of Oaknet Healthcare Eris Oaknet Deal Rationale for Eris Oaknet Business Overview • With the Oaknet deal, Eris extends its presence to • Revenue base of INR 1,950 mn in FY22 87% of the Rs. 55,000 crore Chronic Market, with a • Ranked among
Slide 13: Created significant value from past acquisitions
Created significant value from past acquisitions Eris Acquisition Rationale Value Creation L L • Launched several new products in Neurology and Psychiatry to build a CNS franchise growing at 33% • Entry into CNS p.a. Domestic therapy • Flagship brand Renerve has grown from Rs. 77 2017 Formulations c
Slide 14: High Prescription Ranks among Super-Specialists
Eris Enjoys High Prescription Ranks among Super-Specialists Er s , Eris Prescription Ranks* among leading Doctor Specialties 3 4 4 DIABETOLOGISTS # CARDIOLOGISTS NEUROLOGISTS 5 CONSULTING 7 8 GASTROENTEROLOGISTS PHYSICIANS DERMATOLOGISTS ** 13 Source: SMSRC MAT Jun 2022│* Rank in Represented Market
Slide 15: Three Pillars of Our Market Engagement
Three Pillars of Our Market Engagement Eris Eris POWER OF EMPATHY TRUTH OF SCIENCE The core focus of our market engagement is to enable clinicians to improve clinical outcomes in patients through timely and precision diagnosis and treatment 1 2 3 Dissemination of Generation of Patient Care initiativ
Slide 16: Leading the Digital Dissemination of Scientific Knowledge
1. Leading the Digital Dissemination of Scientific Knowledge since the Start of the Pandemic Eris • As a prominent stakeholder in the enhancement of scientific knowledge, Eris has facilitated ~3,600+ digital (group) interactions since the start of the pandemic covering 52,000+ doctors • Discussion t
Slide 17: The India Diabetes Study
2a. Pioneering India-Centric Studies to Generate Actionable Scientific Evidence – The India Diabetes Study Eris DIABETES IDA First of its kind nation-wide study STUDY Cardiovascular risk in newly diagnosed type 2 diabetes patients in India 5080 Patients │ 1932 Physicians │ 928 Medical centres │ 121
Slide 18: The India Heart Study
2b. Pioneering India-Centric Studies to Generate Actionable Scientific Evidence – The India Heart Study Eris IHS Methodology (1 3 1 INDIA HEART IHS Revealed Expert Speak STUDY The investigators examined the blood 42% of the participants were White-coat hypertensives get pressure of 18,918 participan
Slide 19: Patient Care – Driving Precision Diagnosis
3. Patient Care – Driving Precision Diagnosis and Better Disease Management Eris 19,653 ▪ Objective - to bring cutting- 1,15,333 edge healthcare solutions to our patients through the involvement of Key Opinion Leaders ▪ Focused on state-of-the-art diagnostic facilities and subsequent treatment optio
Slide 20: Our Manufacturing Infrastructure
Our Manufacturing Infrastructure Eris WHO-GMP manufacturing 79% of revenue (in FY22) came facility in Guwahati, Assam WHO GMP facility in Guwahati, Assam 100,000 Built-up area (sq. ft) from products manufactured at 280+ Products manufactured the Guwahati facility Capacity utilization for Prescriptio
Slide 21: Pan-India Sales Presence and Distribution Network
Pan-India Sales Presence and Distribution Network Er s •• Stockists Super Stockists 1 11 Region-wise sales distribution (FY22) 6 81 23 1 10% 47 56 120 200 49 56 2 4 22% 39% 89 29 133 124 1 33 97 251 70 4 29% 94 99 2 Central Warehouses 22 Sales Depots 2,059 Stockists 138 241 1 . . . South West North
Slide 22: Board of Directors
Board of Directors Eris Ane It lib • Eight-member Board of Directors, comprising of four Executive Directors and four Independent Directors Amit Bakshi Krishnakumar V Inderjeet Singh Negi Kaushal Shah Chairman and Executive Director & Executive Director Executive Director Managing Director Chief Ope
Slide 23: Lifestyle Diseases Uptrend – A Large Market Opportunity
Lifestyle Diseases Uptrend – A Large Market Opportunity Eris Expected prevalence of CVD in India ▪ Significant increase in prevalence of non- 69 communicable diseases (NCDs) in India; share of heart disease and metabolic disorders projected to expand in the years to come 29 22 19 6 8 ▪ India is call
Slide 24: Enduring Pillars of Our Business Strategy
Hence the Enduring Pillars of Our Business Strategy Eris DOMESTIC BRANDED FORMULATIONS CHRONIC AND SUB-CHRONIC THERAPIES SPECIALISTS AND CONSULTING PHYSICIANS 23
Slide 25: Key Growth Drivers (1/2)
Key Growth Drivers (1/2) Eris Expansion of • Our business model of building strong and sustainable brands has enabled us to 1 power- significantly outperform the market brands’ • There has been a clear shift in prescriber preference towards established brands over the franchise last two years; this
Slide 26: Key Growth Drivers (2/2)
Key Growth Drivers (2/2) Eris • 3 Expansion of physician coverage • We continue to make good progress in expanding our coverage of Specialists and Consulting Physicians in line with our expectations • We have expanded our field-force by ~150 in the recent past • 4 Therapeutic diversification • We co
Slide 27: Safe Harbour Statement
Safe Harbour Statement Eris 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 the underlying assump
Slide 28: Eris Lifesciences Ltd. contact details
Eris Lifesciences Ltd. CORPORATE OFFICE: “Shivarth Ambit” Plot No. 142/2, Ramdas Road, Off SBR, Near Swati Bungalows, Bodakdev, Ahmedabad, Gujarat 380054 CIN: L24232GJ2007PLC049867 Website : www.eris.co.in IR Contact Kruti Raval kruti@erislifesciences.com 27
Slide 29: Appendix
Appendix Appendix 28
Slide 30: Business Structure and Holdings
Business Structure and Holdings Eris Eris Lifesciences Limited Aprica Healthcare 11.1% N Promoters Limited Earlier known as UTH 15.3% Healthcare Limited N Public Eris M. J. Biopharm Private Limited 52.3% '111111d N FPI Earlier known as Kinedex Healthcare Private Limited 21.3% Eris Therapeutics N DII
Slide 31: Financial Summary (1/2)
Financial Summary (1/2) Eris P&L Summary FY17 FY18 FY19 FY20 FY21 FY22 Revenue 7,495 8,556 9,822 10,741 12,119 13,470 Gross Profit 6,449 7,215 8,285 9,025 9,736 10,885 Gross Profit Margin (%) 86.0% 84.3% 84.4% 84.0% 80.3% 80.8% Operating EBITDA 2,691 3,220 3,449 3,684 4,306 4,850 Operating EBITDA Ma
Slide 32: Financial Summary (2/2)
Financial Summary (2/2) Eris FY17 FY18 FY19 FY20 FY21 FY22 BS Summary Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar’22 Margin (%) Share Capital 138 138 138 136 136 136 Gross Margin 86.0% 84.3% 84.4% 84.0% 80.3% 80.8% Reserves 5,534 8,476 11,368 12,828 15,628 18,947 EBITDA Margin 35.9% 37.6% 35.1% 34.3% 35.
Slide 33: Key Brands in Oral Diabetes Care
Key Brands in Oral Diabetes Care Eris Therapy wide presence in Oral Diabetes Care with power brands holding high ranks in newer generation and fast-growing molecules (DPP4 and SGLT2 inhibitors) Sulfonylurea GlimiSave rank 6 in the ~4,800 cr Glimepiride and combinations market Glimisave MV rank 2 in
Slide 34: Key Brands in Cardiovascular and VMN Therapies
Key Brands in Cardiovascular and VMN Therapies Eris High rank in Anti-Hypertensives: the largest segment of Cardiac Care E ritel rank 5 in the ~3,900 cr Telmisartan and combinations market Eritel CH rank 5 in Telmisartan + Chlorthalidone market Eritel LN rank 2 in Telmisartan + Cilnidipine market 0
Slide 35: Thank You
THANK YOU THANK YOU Eris ErisLifesciences Lifesciences 34
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