Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q3 FY2023 Earnings Presentation
31 slides from Laurus Labs's earnings presentation, Jan 30, 2023
Slide 1: Cover letter to stock exchanges: Investors/Analysts Presentation
January 30, 2023 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 2023 Financial Results and Business Update
Q3 & 9M FY 2023 Financial Results and Business Update January 30 , 2023 >, 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 3 Laurus Q3 & 9M FY2023 Investor Presentation | January 30, 2023
Slide 5: Financial Overview
1 4 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 6: 9M/FY23 – Overview
9M/FY23 – Overview Strong YTD operational results Revenues ₹ 4,660 Cr ▲33% EBITDA ₹ 1,307 Cr ▲ 26% Summary 9M/FY23 Consolidated Financials [₹Crore] 9M/FY23 9M/FY22 Y-o-Y Strong momentum continued delivering ₹ 4,660 Cr Revenues and 33% growth. Sustained robust growth in CDMO and API business Revenu
Slide 7: 9M/FY23 – Business performance
9M/FY23 – Business performance Non-ARV portfolio led by CDMO driving key growth 9M/FY23 Segment Performance Highlights [₹ Crore] 9M/FY23 9M/FY22 Y-o-Y FDF 747 1,389 -46% Formulation (FDF) 1,895 1,500 26% Declined by 46% due to less procurement from Global agencies and adverse pricing. APIs Though
Slide 8: Drivers of 9M FY23 results and Guidance
Drivers of 9M FY23 results and Guidance Broadly maintaining Revenue growth and margins 9M FY 2023 FY 2023 +33% Pipeline progress and strong commercial execution CDMO Strong double digit Revenues growth CMO projects ramp-up in key markets Revenue growth Weak procurement in ARVs + excess channel
Slide 9: Summary Quarterly Performance
Summary Quarterly Performance Sustaining momentum Revenues EBITDA & Margins % [₹ Cr] [₹ Cr] 700 38.0% 33.8% 31.3% 28.9% 28.2% 27.9% 29.5% 28.5% 1,576 33.0% 26.1% 600 1,545 1,539 28.0% 1,425 1,412 500 477 23.0% 1,279 400 454 449 1,203 400 398 404 18.0% 348 300 1,029 13.0% 200 290 8.0% 100 3.0% 0 -2.0
Slide 10: Financial Performance 3Q/FY23
Financial Performance 3Q/FY23 Continued Strong operational performance Revenues ₹ 1,545 Cr ▲50% EBITDA ₹ 404 Cr ▲ 39% Summary 3Q/FY23 Consolidated Financials Revenues: up 50% YoY driven by CDMO-Synthesis and slightly favorable base [₹Crore] 2Q/FY23 3Q/FY23 3Q/FY22 Y-o-Y Q-o-Q in API business Reven
Slide 11: Business review & Strategy
2 10 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 12: Business Performance 3Q/FY23
Business Performance 3Q/FY23 3Q/FY23 Segment Performance Highlights [₹ Crore] 2Q/FY23 3Q/FY23 3Q/FY22 Y-o-Y Q-o-Q FDF 149 249 373 -33% 67% Formulation (FDF): Declined 33% due to soft ARV demand/weak APIs 680 632 424 49% -7% price. Sequential recovery in-line and expect to improve from next quarter
Slide 13: Generic FDF
Generic FDF Sequential ARV recovery in-line; Further normalization likely Revenue Growth Global Filings [₹ Cr] 491 ROW 40 16 56 373 349 Canada 13 6 19 249 Approved Y-o-Y ▼ 33% Pending 149 Q-o-Q ▲ 67% EU 11 1 12 US 26 10 36 3Q 4Q 1Q 2Q 3Q FY22 FY22 FY23 FY23 FY23 * Includes 12 Tentative approvals in
Slide 14: Generic APIs
Generic APIs Growth Stays Strong supported by Continued strength in Other APIs Revenue Growth API Sales mix 680 [₹ Cr] 13% 11% 8% 12% 632 20% 583 539 24% 33% 29% 32% 424 32% Y-o-Y ▲ 49% Onco API Q-o-Q ▼ 7% Other API 65% 60% 59% ARV API 48% 55% 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q FY22 FY22 FY23 FY23 FY23 F
Slide 15: CDMO - Synthesis
CDMO - Synthesis Sustained growth driven by robust underlying demand and strong commercial execution Timelines & Flexibility Key Comments IP Protection Foundation Integrated Service Capability – From process Increased revenues by +210% YoY to ₹ 642 cr for Q3. For 9M, revenues for development to DS
Slide 16: Laurus Bio - Bio business
Laurus Bio - Bio business Muted; new capacities in ramp-up phase Key Comments Revenue Growth Largely Soft quarter and clocked Q3 sales of ₹ 22 cr. 9M sales up 35 22%. Unscheduled downtime during Q3 led to deferred production [₹ Cr] 30 25 27 New Capacity implementation at existing site currently
Slide 17: Execution driven by strong R&D platform
Execution driven by strong R&D platform R&D spent & Filing trend 46 54 60 61 73 77 ◄ DMFs 500 10% 2000+ 450 9 19 26 27 31 36 ◄ US ANDAs 400 1/3rd of total workforce 350 7.2% into R&D, Quality and 300 202 Regulatory 250 5.5% 5.7% 184 6% 4.1% 3.3% 200 166 160 3.8% 150 114 153 827 203 100 R&D Scientist
Slide 18: R&D focus – strong product pipeline
R&D focus – strong product pipeline US/EU pipeline by Addressable market US Filings by Therapy Mix $ 45 bn Para IV: 16 Others, 11% FTFs: 11 CNS, 8% 60% Non-ARV $ 23bn CVS, 8% Total 36 ARV, 56% ~70% Non-ARV Anti- Diabetic, 40% ARV 17% * Total filings: EU (12) & Canada (19) 30% ARV Approved (49)^ Pend
Slide 19: 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) Robust Quality Culture with Quality and Efficiency focus Kilo Lab – USFDA, TG
Slide 20: Manufacturing Infrastructure (1/2)
Manufacturing Infrastructure (1/2) Committed to Enable Customers with Integrated capabilities in Contract Manufacturing Jawaharlal Nehru Pharma City, Visakhapatnam APIIC, Atchutapuram, Visakhapatnam 1 2 •FDF & API •API, CDMO - Synthesis • 10 billion Tablets/Capsules per year • 334 reactors with 1,24
Slide 21: 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 22: Investments over past 15 months and Future Capex Projects update
Investments over past 15 months and Future Capex 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 bro
Slide 23: ESG Approach & Recognitions
ESG Approach & Recognitions | Committed towards best practices Approach Long-term commitments aligned with the following SDGs Sustainability approach built in our Core Value Framework to support longer value creation Enhanced Process & Focus of Material ESG factors Transparent disclosures – Le
Slide 24: Outlook
3 23 Laurus Q1 FY2023 Investor Presentation | July 27, 2022
Slide 25: Diversifying our Segment mix
Diversifying 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 ARV apis, APIs, 16% FY 2025/26 Goal 25% Synthesis, Over 25% 19% revenues from ARV api * Synthesis 80% New capabilities added: FDF, 38% Reco
Slide 26: Outlook FY2023 & Ahead
Outlook FY2023 & Ahead Business Segments Business Segments Growth Outlook Consolidate market share in ARVs despite pricing challenge Niche product pipeline for the developed markets supported by in-house API strength Formulations Strong DM pipeline >US$40bn mkt opportunity; Diabetic & CV portf
Slide 27: Laurus Priorities
Laurus Priorities 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 improvements Widen technology portfolio and access new market opportunities Co
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 Bio (Basic : 76.60%, Diluted : 74.37% ) and Laurus Labs Limited 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 Monday – January 30, 2023 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, oncology drugs, Cardiovascular, Gastro and Hepatitis C therapeutics. We also develop and