Eris Lifesciences Ltd · NSE:ERIS
Eris Lifesciences — Q2 FY23 Earnings Presentation
22 slides from Eris Lifesciences's earnings presentation, Oct 20, 2022
Slide 1: Exchange filing cover letter: Investor Presentation
Date: 20 October 2022 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra Kurla Complex Mumbai- 400001 Bandra (E) Mumbai-400051 Security Code: 540596 Symbol: ERIS SUBJECT: INVESTOR PRESENTATION Dear Sir/Madam, Pursuant to the requir
Slide 2: Eris Lifesciences Q2 FY23 and H1 FY23 Investor Presentation
Eris ERIS LIFESCIENCES LIMITED Q2 FY 23 and H1 FY 23 INVESTOR PRESENTATION 20th October 2022 I- 1 tris
Slide 3: Financial and Business Highlights – Q2 FY23 and H1 FY23
FINANCIAL AND BUSINESS HIGHLIGHTS – Q2 FY 23 AND H1 FY 23 Q2 FY 23 H1 FY 23 INR mn INR mn INR mn INR mn 4,605 1,514 8,591 2,807 28.0% 32.9% 21.2% 32.7% Op Revenue yoy growth EBITDA Margin Op Revenue yoy growth EBITDA Margin INR mn INR mn 1,194 2,125 25.9% 24.7% PAT Margin PAT Margin • Oaknet growth
Slide 4: Oaknet – An Emerging Success Story in Value Creation through M&A
OAKNET – AN EMERGING SUCCESS STORY IN VALUE CREATION THROUGH M&A Going into the deal – May 2022 Value Creation Initiatives - May 2022 to Sep 2022 • Strategic entry for Eris into the • Leveraged key levers of Execution Excellence Dermatology segment • Realigned Divisional focus with specific Product
Slide 5: Clear Visibility on Secular Growth Drivers Over the Next 3 Years (1/2)
CLEAR VISIBILITY ON SECULAR GROWTH DRIVERS OVER THE NEXT 3 YEARS (1/2) Therapeutic Segment/s Key Growth Drivers 3-year Outlook 1 Core Segment - Cardio • Eris continues to grow well ahead of the market • Market expected to Metabolic sustain “early to mid • Q2 FY23 – Eris 21.8% growth vs. Market 14.6%
Slide 6: Clear Visibility on Secular Growth Drivers Over the Next 3 Years (2/2)
CLEAR VISIBILITY ON SECULAR GROWTH DRIVERS OVER THE NEXT 3 YEARS (2/2) • 2 Therapeutic Segment/s Emerging Therapies (21% of current revenue) Key Growth Drivers Eris portfolio has achieved critical mass (Revenue base Rs. 420 cr. per annum) and has been growing well ahead of the market 3-year Outlook
Slide 7: Q2 FY23 and H1 FY23 – Entity Wise Margin Profile
Q2 FY 23 AND H1 FY 23 – ENTITY WISE MARGIN PROFILE Q2 FY 23 H1 FY 23 EBITDA Margin Entity Op Op YoY Gr EBITDA YoY Gr YoY Gr EBITDA YoY Gr H1 FY 23 H1 FY 22 Revenue Revenue Eris (Standalone) 3,554 10% 1,410 3% 6,841 9% 2,672 3% 39.1% 41.3% Oaknet (BGx) 681 NA 165 NA 996 NA 229 NA 23.0% NA Aprica (BGx
Slide 8: Eris Ranks Among the Top-10 Fastest Growing Companies in Q2 FY23
ERIS RANKS AMONG THE TOP-10 FASTEST GROWING COMPANIES IN Q2 FY23 Eris has outperformed the IPM by 630 bps in Q2 FY23 23.2 20.4 a 19.3 18.6 16.9 16.6 16.4 15.6 15.0 14.6 13.0 IPM INTAS GLENMARK ERIS LS TORRENT EMCURE* SUN* ZYDUS* ABBOTT* FDC MACLEODS Eris continues to be amongst the Top-10 companies
Slide 9: Eris Continues to Grow Ahead of the Market in Cardiometabolic and 3 Emerging Therapies
ERIS CONTINUES TO GROW AHEAD OF THE MARKET IN CARDIOMETABOLIC AND 3 EMERGING THERAPIES Eris grew at 19.3% in Q2 FY 23 vs. IPM growth of 13.0%; 1 1 1 I I L Outperformed IPM in all 6 core therapies - Cardio-Metabolic, VMN, CNS, Derma & Women’s Health IPM Eris Cardio-Metabolic : 53% of Eris Emerging Sp
Slide 10: Three Emerging Therapies (21% of Revenue) Grew at 25.3% in Q2 FY23
THREE EMERGING THERAPIES (21% OF REVENUE) GREW AT 25.3% IN Q2 FY23 IPM Eris r" ) 1 I % Derma: 8% of Eris I i ) CNS : 7% of Eris Women’s Health : 6% of Eris ) 24.1 25.8 38.6 38.2 49.3 29.5 38.1 38.4 J.I.Liad I MI .• _M _I MI 16.0 17.5 25.1 24.1 24.0 28.0 13.1 15.0 16.0 11.1 7.6 13.2 16.5 10.6 15.3 15
Slide 11: VMN Market Has Bounced Back in Q2; Eris Grows 210 bps Ahead of Market
VMN MARKET HAS BOUNCED BACK IN Q2; ERIS GROWS 210 BPS AHEAD OF MARKET f- I • VMN Segment : 16% of Eris IPM 1 II 59.7 I I Eris 48.0 II II 37.2 .J.I II II II 13.1 14.5 14.1 11.8 II 12.4 14.5 9.9 II 7.6 5.3 I 1.1 •M -• II -6.0 -6.0 I I I -0.3 7 -4.0 -5.3 II -11.9 -13.2 II Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4
Slide 12: Eris Maintains High Prescription Ranking Among Doctor Specialties
ERIS MAINTAINS HIGH PRESCRIPTION RANKING AMONG DOCTOR SPECIALTIES Eris Prescription Ranking* among Doctor Specialties 4 4 4 DIABETOLOGISTS # CARDIOLOGISTS NEUROLOGISTS 5 CONSULTING 7 5 GASTROENTEROLOGISTS PHYSICIANS DERMATOLOGISTS Source: SMSRC MAT Aug 2022 │* Rank in Represented Market including Oa
Slide 13: Power Brands Continue to Have Leading Presence in Core Therapies (1/3)
POWER BRANDS CONTINUE TO HAVE LEADING PRESENCE IN CORE THERAPIES (1/3) Therapy wide presence in Oral Diabetes Care with power brands holding high ranks in Newer-generation fast-growing molecules Sulfonylurea Glitni5ave rank 6 in the ≈5,000 cr Glimepiride and combinations market Glimisave MV rank 2 i
Slide 14: Power Brands Continue to Have Leading Presence in Core Therapies (2/3)
POWER BRANDS CONTINUE TO HAVE LEADING PRESENCE IN CORE THERAPIES (2/3) Strong presence in Anti-Hypertensives: the largest segment of Cardiac Care E ritel rank 5 in the ≈4,000 cr Telmisartan and combinations market Eritel CH rank 5 in Telmisartan + Chlorthalidone market Eritel LN rank 2 in Telmisarta
Slide 15: Power Brands Continue to Have Leading Presence in Core Therapies (3/3)
POWER BRANDS CONTINUE TO HAVE LEADING PRESENCE IN CORE THERAPIES (3/3) Leading brands in Medical Dermatology Cosvate rank 1 in the ≈500 cr Clobetasol and combinations market 16% market share Cosvate-GM rank 1 Clobetasol + Gentamicin + Miconazole market Cosmelite rank 3 in Melasma Therapy Emerging pr
Slide 16: Q2 FY23 and H1 FY23 - Standalone Income Statement
Q2 FY 23 AND H1 FY 23 - STANDALONE INCOME STATEMENT Standalone Q2 FY 23 H1 FY 23 INR Millions Q2 FY 23 Q2 FY 22 H1 FY 23 H1 FY 22 yoy Gr % yoy Gr % • Q2 FY23 standalone operating revenue of Rs. 355 Sale of Products 3,500 3,161 10.7% 6,720 6,164 9.0% crore, which represents a growth of 10% yoy Other
Slide 17: Q2 FY23 and H1 FY23 - Consolidated Income Statement
Q2 FY 23 AND H1 FY 23 - CONSOLIDATED INCOME STATEMENT Consolidated Q2 FY 23 H1 FY 23 INR Millions Q2 FY 23 Q2 FY 22 H1 FY 23 H1 FY 22 yoy Gr % yoy Gr % • Q2 consolidated operating revenue Rs. 461 cr, Sale of Products 4,553 3,533 28.9% 8,474 6,970 21.6% Other Operating Income 52 63 -18.2% 117 119 -2.
Slide 18: Eris Continues to Execute Successfully on Growth Drivers (1/2)
ERIS CONTINUES TO EXECUTE SUCCESSFULLY ON GROWTH DRIVERS (1/2) • 1 Expansion of power- brands’ franchise • Our business model of building strong and sustainable brands enables us to consistently outperform the market • Eris delivered a growth of 19% in Q2 FY23 vs. a market growth of 13% • Eris deliv
Slide 19: Eris Continues to Execute Successfully on Growth Drivers (2/2)
ERIS CONTINUES TO EXECUTE SUCCESSFULLY ON GROWTH DRIVERS (2/2) •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 added ~ 200 Reps to the Eris field-force since the start
Slide 20: Shareholder Profile
SHAREHOLDER PROFILE Shareholding of Promoters and Top 15 Institutional Investors As on As on As on Name of Shareholder 30-Sep-22 30-Jun-22 31-Mar-22 Others 711* 667* 689* FPIs 0.37% 15.39% Promoters 52.29% 52.30% 52.66% 1 Chrys Capital (Emerald Investment Limited) 7.58% 7.58% 5.50% 2 UTI Mutual Fund
Slide 21: 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 the underlying assumptions
Slide 22: Thank You
Eris ERIS LIFESCIENCES LIMITED THANK YOU KRUTI RAVAL INVESTOR RELATIONS kruti@erislifesciences.com 21 Kris