8/2/2019 InvestorPresentation -September2011
1/19
Lupin LtdQuarter 2
Investor Presentation
8/2/2019 InvestorPresentation -September2011
2/19
Corporate Highlights Q2 11-12
Net sales grew by 24% to Rs. 17,417 million during Q2, FY 2011-12, up from Rs. 14,094
million (Q2 FY 10-11) Net profits grew by 24% to Rs. 2,669 million during Q2, FY 2011-12, as compared to Rs
2,150 million (Q2 FY 10-11)
Growth across all geographies
US business grew by 15.2% in INR terms and 17.8% in USD terms
Japan grew by 13.5% in INR terms and 3.8% in JPY terms
S African business grew at 61.0% in INR terms and 57% in ZAR terms India Region sales continued to grow at 22.2%
Capex spend at Rs 1,285 million to meet expected demand
Revenue Expenditure on R&D was at Rs. 1,380 Mn., amounting to 7.9% of Net Sales
during Q2, FY 2011-12, as against Rs. 1,157 Mn., 8.2% of Net Sales in Q2, FY 2010-11
During the quarter the company filed one ANDA bringing the Cumulative filings as of
Q2, FY 2011-12, to 153 filings, of which 54 have been approved by the US FDA Metformin ER Tablets launched in the US market with 180 days exclusivity
Licensing agreement entered into with Medicis Pharmaceutical Corporation for
applying proprietary technology on multiple products
8/2/2019 InvestorPresentation -September2011
3/19
Financial Trend Q2 2011-12
Sales +24%
-
5,000
10,000
15,000
20,000
Q2 10-11 Q2 11-12
14,094
17,417
Sales (Net)
-
1,000
2,000
3,000
4,000
5,000
Q2 10-11 Q2 11-12
3,001
4,057
EBIDTA
-
500
1,000
1,500
2,000
2,500
3,000
Q2 10-11 Q2 11-12
2,150
2,669
Net Profit
8/2/2019 InvestorPresentation -September2011
4/19
Financial Highlights : Q2 11-12
Rs 2,669 Mn
YoY growth 24%
Rs 4,057 Mn
YoY growth 35%
WC : 89 days
Debt Equity : 0.25
ROCE : 22.8%
Rs 17,417 Mn
YoY growth 24%
RevenueFinancialStrengths
PATEBITDA
8/2/2019 InvestorPresentation -September2011
5/19
Balance Sheet Ratios
Particulars Q2 11-12 FY 10-11
Operating WorkingCapital 16,089 13,082
No. of Days to Sales 89 83
ROCE (%) 22.8% 21.5%
Debt Equity Ratio 0.25 0.22
Rs Mn
8/2/2019 InvestorPresentation -September2011
6/19
Revenue Mix : Q2 11-12
Business Break up
Formulation
89%
API
11%
Within India
31%
Outside
India
69%
Advanced
Markets
Sales
57%
Emerging
Market
Sales
10%
Domestic
Sales (Net)
33%
Geographical Break up
Formulations Sales Break up
8/2/2019 InvestorPresentation -September2011
7/19
Business Update
8/2/2019 InvestorPresentation -September2011
8/19
US Branded
Branded portfolio forms 25% of US Turnover and grew by 19% in the quarter
US Generics
5th largest Generic player in the U.S. by Rx (IMS Health)
grew by 14% in thequarter
No. 1 in 16 out of 32 products
Top 3 in 30 of the 32 products
EU Generics
Recorded a growth of 25% during the quarter
Advanced Markets US and Europe
5161
5981
4600
4800
5000
5200
5400
5600
5800
6000
6200
Q2 2010-11 Q2 2011-12
USDMn
Sales (only formulations)
8/2/2019 InvestorPresentation -September2011
9/19
India Region Formulations
Aggressive focus on brand building
Extensive collaboration with thought leading institutions
Continues to be among the fastest growing company in the domestic space @ 22%
Contributed 29% to Lupins overall revenues during Q2, FY 2011-12
Branded business grew by 23% during the quarter
Current Field Force strength at 4600+
4 products find a place among the top 300 in the industry
11 new products launched in the Quarter
41915120
0
1000
2000
3000
4000
5000
6000
Q2 2010-11 Q2 2011-12
RsMn
Sales
8/2/2019 InvestorPresentation -September2011
10/19
Japan
Net Sales grew by 13.5% at Rs 1,780 Mn and contributed 10% of the revenues
during the quarter. Sales in JPY terms grew by 3.8% during the quarter
Market leader in Risperidone in terms of units and key player in Amlodipine
6 new products launched during the year Profit enhancement measures to yield better results in the days to come
Work ongoing for 12 manufacturing site transfer projects for cost advantage
1567
1780
1450
1500
1550
1600
1650
1700
1750
1800
Q2 2010-11 Q2 2011-12
INRMn
Sales
8/2/2019 InvestorPresentation -September2011
11/19
South Africa
Net Sales grew by 61% at Rs 679 Mn and contributed 4% of the revenues during
the quarter. Sales in ZAR terms grew by 57% during the quarter
Sixth largest generic company in the S African market
Leading presence in CVS
Several new products under registration
Future growth through improved generics, IP challenges and in-licensing
Leaders in Amlodipine, Amloc and Bilocor in unit sales
422
679
0
100
200
300
400
500
600
700
800
Q2 2010-11 Q2 2011-12
INRMn
Sales
8/2/2019 InvestorPresentation -September2011
12/19
ROW
New brand launches in Philippines in specialized Oncology portfolio.
Brand acquisition and in-licensing a common theme across markets
OTC promotion support in mass media
Created thrust in three countries across CIS Russia, Ukraine andKazakhstan
Strategic focus on tender / hospital business in CIS
Increased focus on brand building and entry into retail chains
8/2/2019 InvestorPresentation -September2011
13/19
API and Intermediates
Cost, quality and reliability are the cornerstones of our API strategy
Global leadership in chosen therapies
Cephs
Ceph-intermediates
Anti-TB range
Lisinopril
Achieved global cost, capacity and market share leadership in mostproducts
Strategic input into formulations business
8/2/2019 InvestorPresentation -September2011
14/19
Research and Development
Talent pool of 1000+ scientists
153 ANDAs, 111 DMFs
Ability to churn out rich pipeline across geographies
Increased focus on F2F and Para IVs
Strength in drug delivery
Litigation Settlements Loestrin Fe, Femcon Fe, Minocycline Bioadhesive
Laser-drilled
Matrix/coated
Taste-masking
Revamping Drug Discovery Requisite infrastructure in place
Total expenditure Q2 2011-12 Rs. 1,380 Mn, 7.9% of Net sales
Market Filings Approval
US 153 54
EU 102 51
8/2/2019 InvestorPresentation -September2011
15/19
US Generics Pipeline
153 products filed, 54 approved
Para IVs addressing market size of US$ 30 Bn
F2Fs Desloratadine, Memantine, Duloxetine, Eszopiclone, Ziprasidone,Lanthanum Carbonate, Pregabalin, Lo-Seasonique, Seasonale
Exclusive F2Fs Fortamet, Glumetza, Cipro DS
Differentiated products
Oral contraceptives
Ophthalmic
Niche products Niacin XR, Esomeprazole, Tricor, Sevelamer
8/2/2019 InvestorPresentation -September2011
16/19
The Way Ahead
8/2/2019 InvestorPresentation -September2011
17/19
Lupins Core Strength in Generics
Managing the Environment Advantage
Local market knowledge Speed & agility High quality products Low cost manufacturing
8/2/2019 InvestorPresentation -September2011
18/19
IncreasedMarketShare
LifeCycle
Management
Innovationled VAGs
Acquisitions
ValueAdded
Generics
FlawlessExecution
NewProduct
Launches
Branding / Differentiation
Life Cycle Management
Continuous Improvementon the Cost front
Capacity Leverage
Better realization throughValue added products
Focal Points
Increase Market Share Increase Margins
8/2/2019 InvestorPresentation -September2011
19/19
Thank You