Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Q4 FY2013 Earnings Presentation
22 slides from Dr. Reddy's Laboratories's earnings presentation, May 14, 2013
Slide 1: Q4 and FY13 Press Meet
Dr. Reddy’s Laboratories Ltd Q4 and FY13 Press Meet May 14, 2013
Slide 2: A Touching Tribute
e oo Y Dr. REDDY'S ( nqno son nent eenapenagllfe & Times of Dr aniiRedty — H@ Introduced India to the Pharma doyen Drug Called Innovation Anji Reddy passes away Anji Reddy, pioneer of Indian ‘ i) : pharma industry, arr eee passes away = ore res eel _ 7 sepememre = SUR iyaeiyemi we tee q ‘ = : Te 4 P
Slide 3: Industry Trends
Industry Trends Growth Shift to Emerging Markets US Generics Growth Customer Consolidation Regulatory Constraints Product Portfolio Shift Amongst Generic Companies
Slide 4: Emerging Markets: New Frontier of Growth
Emerging Markets: New Frontier of Growth Russia CIS China Myanmar Vietnam Venezuela Srilanka Australia South Africa New Zealand
Slide 5: Growth Opportunities for Dr. Reddy's
Growth Opportunities for Dr. Reddy’s High Value Launches in the US Strong Pipeline of Difficult to Make Products OTC Play in the US and Emerging Markets Biosimilars Niche Technology Capabilities
Slide 6: Transformational initiatives in driving Operational Excellence
Transformational initiatives in driving Operational Excellence Safety Cost Leadership Capacity Management Globalizing R&D
Slide 7: Globalizing our R&D
Globalizing our R&D Chirotech Technology Development Centre Cambridge, UK Octoplus Technology Development Centre Leiden, Netherlands Development Lab Princeton , USA Global presence Industry leading Chemistry skills Integrated Product Development Centre Building niche technology capabilities Hy
Slide 8: Industry trends and business drivers by segment
Global Generics‐ Active Custom Global North America Pharmaceutical Pharmaceutical Biosimilars Generics‐ EMs Ingredients Services Patent expiries Regulatory Volume Big Pharma Volume Patent expiries advances in EU growth rationalization growth Price erosions and US Effect of price of costs Ind
Slide 9: Recognitions
Recognitions ‘Best Managed Boards of India’ award Conferred by the Stars of the Industry Group, Asian Confederation of Businesses. Selected as one of the ‘Best Managed Boards in India’ in the Aon Hewitt, Mint, BSE and NSE Study, 2012. Titanium Award for Excellence in Corporate Governance From 'The A
Slide 10: FY13 Business Highlights
FY13 BUSINESS HIGHLIGHTS
Slide 11: FY Business Highlights
FY 13 Business Highlights Q4 FY13 Revenues at ` 3,340 Crs Best ever Quarterly Performance FY 13 Revenues ` 11,627 Crs EBITDA ` 2,782 Crs YoY Growth 26%# 24% to Sales Investment in R&D at around PAT ` 1,678 Crs 7% YoY Growth 18% # Excluding the impact of the olanzapine profit share recorded in FY 12
Slide 12: Key Financial Highlights
Key Financial Highlights ` Crs Quarter Annual 26% 3,340 20% 11,627 Revenues 2,658 9,674 37% 929 9.5% 2,782 EBITDA 680 2,541 66% 571 18% 1,678 PAT 343 1,426
Slide 13: Global Generics ₹8,256 Crs (FY13)
Global Generics `8,256 Crs (FY13) Europe Emerging Markets US `772Crs (‐7%) `2,244 Crs (31%) `3,785Crs (38%#) India `1,456 Crs (13%) # Excluding the impact of the olanzapine profit share recorded in FY 12
Slide 14: Global Generics: US
Global Generics : US Revenues ` Crs Market Shares Key Products 38#% Mar-13 Mar-12 Rank Olanzapine sales during 451 Tacrolimus 45% 22% 1 Q3FY12 Lansoprazole 21% 19% 2 3,785 Fondaparinux 27% 24% 2 2,738 (Volume – Generics Market; Source: IMS Health Inc Mar2013) • Finasteride (FTF) market Share: 78%
Slide 15: Global Generics: Emerging Markets
Global Generics : Emerging Markets Revenues ` Crs RUSSIA 31% • Volume growth in key brands and new product launches • OTC revenues at 34% to sales 2,244 1,716 CIS • YoY growth of 28% • OTC revenues growth: 76% FY12 FY13 25% RoW Q4 FY12 466 584 Q4 FY13 • YoY growth of 42% • Volume growth in key brand
Slide 16: Global Generics: India
Global Generics : India Revenues ` Crs 13% Volume growth in key brands: Nise, Stamlo, Reditux, OmezD, Econorm, Atocor and Razo 1,456 1,293 24 New Products Launched Biosimilar revenues at ` 110 Crs; YoY Growth +25%, 3 year CAGR of 39% FY12 FY13 9% Growth focus – Combination Rx Q4 FY12 320 348 Q4 FY13
Slide 17: Pharmaceutical Services & Active Ingredients
Pharmaceutical Services & Active Ingredients Revenues ` Crs 29% APIs Growth driven by new launches to 3,070 2,381 generic customers on the back of many patent expiries FY12 FY13 36% CPS Growth driven by new customer orders Q4 FY12 748 1017 Q4 FY13 DMFs Pipeline 47 DMF filings during the year; US 1
Slide 18: Q&A Session
my Dr. REDDY'S Q&A Session Mae vance ARCH.HOPE
Slide 19: P&L FY13
P&L FY13 ` Crs Particulars FY13 FY12 Gr% Revenue 11,627 9,674 20% Gross Profit 6,058 5,331 14% % to sales 52% 55% SG&A 3,358 2,887 16% % to sales 29% 30% R&D 767 591 30% % to sales 7% 6% EBITDA 2,782 2,541 9.5% % to sales 24% 26% PAT 1,678 1,426 18% % to sales 14% 15% 19
Slide 20: P&L Q4 FY13
P&L Q4 FY13 ` Crs Particulars Q4 FY13 Q4 FY12 Gr% Revenue 3,340 2,658 26% Gross Profit 1,685 1,397 21% % to sales 50% 53% SG&A 872 722 21% % to sales 26% 27% R&D 233 174 34% % to sales 7% 7% EBITDA 929 680 37% % to sales 28% 26% PAT 571 343 67% % to sales 17% 13%
Slide 21: Key Balance Sheet Items
Key Balance Sheet Items ` Crs Particulars Mar’13 Mar’ 12 Cash & Cash Equivalents 2,210 1,815 Trade & Other receivables 3,197 2,534 Inventories 2,160 1,935 Property, plant & equipment 3,781 3,325 Loans & borrowings (current & non current) 3,676 3,221 Trade accounts payable 1,186 950 Net Debt – Equity
Slide 22: Thank You
LIFE.RESEARCH.HOPE THANK YOU
Dr. Reddy's Laboratories — Q4 FY2013 Earnings Presentation on 6ix