investorpresentation -september2011

8/2/2019 InvestorPresentation -September2011

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Lupin LtdQuarter 2

Investor Presentation


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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


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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


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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


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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


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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


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Business Update


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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)


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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


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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


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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


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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


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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


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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


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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


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The Way Ahead


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Lupins Core Strength in Generics

Managing the Environment Advantage

Local market knowledge Speed & agility High quality products Low cost manufacturing


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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


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Thank You

investorpresentation -september2011

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