Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q2 FY19 Earnings Presentation
27 slides from Laurus Labs's earnings presentation, Nov 1, 2018
Slide 1: Cover letter to stock exchanges
laurus labs limited Corporate Office 2'~ Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad - 500034, Telangana. India T +91 40 39804333 I 2342 0500 I 501 LAURUS Labs F +91 40 3980 4320 Knowledge . Innovation . Excellence November 01 , 2018 To To The Corporate Relations Department The Listi
Slide 2: Q2 & H1 FY19 Results Presentation
LAURUS LABS LIMITED Q2 & H1 FY19 RESULTS PRESENTATION November 01, 2018 BSE: 540222 NSE : LAURUSLABS
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ mate
Slide 4: Business Snapshot
Business Snapshot Overview • Development, manufacture • Developing and manufacturing • Contract development and • Sale and manufacture of and sale of active oral solid formulations manufacturing services for specialty ingredients for use in pharmaceutical ingredients global pharmaceutical nutraceuti
Slide 5: Strategy in Motion
Strategy in Motion ARV & HEP-C Oncology & Other APIs FDFs Synthesis Ingredients • Significant increase in HIV • Leadership in select • Leverage API capabilities; • Services offering • Leverage process patient population with Oncology API. Launching capture operating development and chemistry skills
Slide 6: Transformation of Business Model
Transformation of Business Model • Crossed INR 20 billion of revenue • Commenced commercial operations from Unit 4 • Incorporated a subsidiary in Germany • Investment of • Incorporated First • Unit 2-Formulations, inspected by INR 600 Mn by Subsidiary in USA, • Successfully listed on BSE & USFDA wit
Slide 7: Formulations Business – Global Approach
Formulations Business – Global Approach Extensive Manufacturing capabilities across markets with commitment to maintain highest quality standards – “One Quality Standard for All Markets” Current FDF Manufacturing Capacity - 5 bn tab/caps with total Capex investment of ~INR 4,250 mn Tenofovir (
Slide 8: Formulations Strategy for Developed Markets
Formulations Strategy for Developed Markets US, EU, Canada remains our key focus markets by focusing on the combination of Overview commercialised high volume products, first to file, Para IV opportunity based on IP to address short, medium and long term strategy. Target Markets USA, Europe and Cana
Slide 9: Formulations Strategy for Emerging Markets
Formulations Strategy for Emerging Markets Emerging Markets of Africa & ARV Tender business remains the Overview forefront of our Formulations Strategy. Integrated approach is key to success and Laurus is well positioned to garner this opportunity Emerging Markets – Global fund tenders, WHO Tender,
Slide 10: Strong R&D Capabilities
Strong R&D Capabilities “Research-first” approach – Set up dedicated R&D Key Accreditations center in Hyderabad in 2006 prior to commissioning API manufacturing facility in 2007 and further expansion completed in 2017. R&D team comprising 800 plus scientists (~24% of total employee strength) inc
Slide 11: Quality Focus & Regulatory Audits
Quality Focus & Regulatory Audits Laurus’ Philosophy “One Quality Standard for all markets” Regular Inspection at different manufacturing units 2018 USFDA We maintain consistent quality, efficiency and product safety. 2017 WHO, USFDA, EU (Germany) 2016 USFDA We have adopted uniform manufacturing sta
Slide 12: Manufacturing Facilities at Parawada, Vizag
Manufacturing Facilities at Parawada, Vizag Unit-I • Located at Jawaharlal Nehru Pharma City, Vishakhapatnam, India. • API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing. • Commenced operations in 2007. • 315 reactors with 1,141 Kilo Liters capacit
Slide 13: Manufacturing Facilities at Achutapuram, Vizag
Manufacturing Facilities at Achutapuram, Vizag Unit-II • Located at APIIC, Achutapuram, Visakhapatnam, India. (SEZ) • FDF and API manufacturing facility • Commenced operations in 2017. • FDF - capacity of 5 bn tablets per year. • API block with 12 reactors with 83 Kilo Liters capacity. • Received ap
Slide 14: Business Highlights – Q2 & H1 FY19
Business Highlights – Q2 & H1 FY 19 Overall Total Income at INR 11,273 Mn during the H1 FY19 (Y-o-Y) grown by 11 % and INR 5,883 Mn during quarter grown by 9% Y-o-Y. R & D spent of INR 794 Mn and 7 % as percentage of sales during H1 FY19. Generic API Filed 230 patent applications and 69 patent
Slide 15: Performance Highlights - Abridged Profit & Loss statement
Performance Highlights - Abridged Profit & Loss statement Growth % Growth % Growth % (Q2 FY19 Particulars (Rs. mn) Q2 FY19 Q2 FY18 (Q2 FY19 Vs. Q1 FY19 H1 FY19 H1 FY18 (H1 FY19 Vs. Vs. Q2 FY 18) H1 FY 18) Q1 FY 19) Total Revenues from Operations (Net) 5,883 5,386 9.2% 5,390 9.1% 11,273 10,170 10.8%
Slide 16: Drivers of Revenue – Division wise revenue breakup
Drivers of Revenue – Division wise revenue breakup Total Revenues grew by 9% for the quarter (Y-o-Y) and 11% 4% 1% 2% 3% 3% 3% 9% 10% 6% 7% for H1 (Y-o-Y) 10% 8% 8% 4% 9% 7% 7% 8% 8% 8% 8% ARV Segment registered a healthy growth of over 17% in H1 4% 5% 6% 5% 10% (Y-o-Y) on the back of improved v
Slide 17: Abridged Balance Sheet
Abridged Balance Sheet As on As on 31.03.2018 30.09.2018 Particulars (Rs. mn) EQUITY AND LIABILITIES Shareholders' funds Share capital 1,060 1,064 Reserves and surplus 13,766 13,862 Non-current liabilities 2,272 3,898 Current liabilities 13,069 13,911 Total 30,167 32,735 ASSETS Non-current assets 1,
Slide 18: Efficient Use of Capital and Prudent Leverage
Established Track Record Of Delivering Growth – Efficient Use of Capital and Prudent Leverage Pre Tax Return on Capital Return on Equity(2) (%) Total Debt/Equity Ratio (x) Employed(1) (%) 16.5% 16.5% 17.0% 17.4% 1.2x 1.1x 14.5% 13.7% 12.7% 11.9% 0.8x 0.7x 0.6x 7.1% 4.4% FY15 FY16 FY17 FY 18 FY 19 H1
Slide 19: Management Team
Management Team Tom Versosky Chandrakanth Chereddi President FDF North America ED & Head, Generics FDF & Strategy Dr. Prafulla Kumar Nandi SVP, Global Regulatory Affairs Ravi kumar V V G Venkateshwar Reddy (Formulations) ED &CFO CS and Sr. GM – Legal & Secretarial Dr. GSR Anjaneyulu Exec. VP & Head,
Slide 20: Corporate Governance
Corporate Governance Executive Directors Name Background Dr Satyanarayana Chava Whole-time Director, Founder and Chief Executive Officer Ravi Kumar V V Whole-time Director and CFO Chandrakanth Chereddi Whole-time Director and Head of Generic FDF and Strategy Dr Lakshmana Rao C V Whole-time D
Slide 21: Ownership Structure
Ownership Structure Corporate Structure Laurus Labs Limited Laurus Synthesis Laurus Holdings All are 100% Sriam Labs Pvt Ltd. Inc. Ltd. Subsidiaries India USA UK Laurus Generics Laurus Generics Inc. GmbH. USA Germany Shareholding pattern * 33.4% 5.93% 9.25% 1.1% 0.13% 19.8% 11.6% 18.89% Promoter Fin
Slide 22: Pharmaexcil Outstanding Exports Award 2017-2018
Pharmaexcil Outstanding Exports Award 2017-2018 Laurus Labs bags the prestigious Pharmaexcil Outstanding Exports Award 2017-2018 in Pharmaceutical Sector. Mr. V V Ravi Kumar, ED&CFO, Laurus Labs received the award on 14 of September 2018 in a grand ceremony held in Hyderabad. 21
Slide 23: Global Generics & Biosimilars API Supplier of the year award 2018
Global Generics & Biosimilars API Supplier of the year award 2018 22
Slide 24: Fortune 500 Company, Great Place To Work
Laurus Labs is a Fortune 500 Company, Great Place To Work and one of the India’s Best Workplace in 2018 Laurus Labs is listed in the Fortune Laurus Labs is certified as Laurus Labs is recognized as 500 Companies List in India “Great Place to Work” for the one of the Best Work Places in year 2018. Bi
Slide 25: Results Conference Call
Results Conference Call Results conference call on Friday November 02, 2018 at 4:00 PM IST Details of the conference call are as follows: Timing 4:00 PM IST on Friday, November 02, 2018 Conference dial-in Primary number +91 22 6280 1214 India Local access Number +91 7045671221 Available all over Ind
Slide 26: Contact us
Contact us About Laurus Labs Ltd. Laurus Labs is a leading research and development driven pharmaceutical company in India. The Company has grown consistently to become one of the leading manufacturers of Active Pharmaceutical Ingredients (APIs) for anti-retroviral (ARV) and Hepatitis C. Laurus also
Slide 27: Thank You
Thank You