Lupin
Scaling new heights….
May 8, 2013
Safe Harbor Statement
Materials and information provided during this presentation may contain ‘forward-looking
statements’. These statements are based on current expectations, forecasts and assumptions
that are subject to risks and uncertainties which could cause actual outcomes and results to differ
materially from these statements.
Risks and uncertainties include general industry and market conditions, and general domestic and
international economic conditions such as interest rate and currency exchange fluctuations. Risks
and uncertainties particularly apply with respect to product-related forward-looking statements.
Product risks and uncertainties include, but are not limited, to technological advances and
patents attained by competitors, challenges inherent in new product development, including
completion of clinical trials; claims and concerns about product safety and efficacy; obtaining
regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and
healthcare cost containment, and governmental laws and regulations affecting domestic and
foreign operations.
Also, for products that are approved, there are manufacturing and marketing risks and
uncertainties, which include, but are not limited, to inability to build production capacity to meet
demand, unavailability of raw materials, and failure to gain market acceptance.
The Company disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise.
Vision: To be an innovation
led transnational
pharmaceutical company
Pharma Landscape
Global generics to grow from $242b to $400b in 2016
France : 41
Germany : 45
UK
: 22
USA : 322
Canada: 22
47 78
6 7
China : 67
India : 14
Italy : 29
Spain : 23
2011 Total Mkt
2011 Gx
6 8
7 10
5 7
Brazil : 30 15
Mexico : 10 4
3.5
2
31
13
4.5
3
58
27
Japan: 111
28
8
2016 Gx
Australia
:
13
1.5
2.5
Source; IMS market prognosis, May 2012
Pharma Mkt 2011- $956 b
Pharma Mkt 2016 - $ 1145 – 1235b
Generic Mkt 2011- $242 b
Generic Mkt 2016- $400 b
Overall growth: 65%
6
10
BRIC – Fuelling generics & overall growth
Italy
3%
Spain
3%
Canada
Generics – 2011-16 CAGR
driven by :
4%
Germany
5%
France
5%
UK
South Korea
USA
Australia
Japan
Rapid growth in generics
 Economic growth
 Healthcare
7%
expenditure
8%
 New products
 Structural changes in
11%
12%
13%
Russia
14%
Brazil
14%
India
healthcare systems
15%
China
16%
Source; IMS Health, Epsicom & Bloomberg
Industry Trends & Drivers
Headwinds
Tailwinds

Generics are the obvious winners of any
healthcare reform (affordable care)
opportunities in the bio Potential
similars space (regulatory pathway
evolving across markets)

Industry under consolidation phase
(lesser number of competitors).
Partnering opportunities

Ageing population

Price control measures & inclination of
moving branded generics to generic –
generic (e.g. India, EU5)
cliff - ~$60b of drugs going off
 Patent
patent in 5 years (2014 to 2018), as
against ~$70b in 3 years (2011 to 2013)
 Big Pharma pursuing BGx opportunities
 Increasing regulatory costs & oversight
Momentum gained so far…
Lupin Today
 8th largest Market Cap amongst Global Generic Companies ~$5.7 billion
 Revenues > $ 1.74 billion
 Top 4 Pharmaceutical company in India
 US and Domestic business outperforming industry
 Onshore presence in 10 countries (significant presence across 4 countries)
 R&D expenditure @ 7.5% of net sales
 Vertically integrated
 12 manufacturing sites (5 US FDA approved) (2 sites in Japan)
Conversion rate: USD = INR 54.30
Awards & Accolades

NDTV Business Leadership Awards - Pharma Company of the Year 2012

Lupin was ranked 1st amongst pharma companies in the Great Place to Work
survey ‘Best Companies to work for 2012, India’ and amongst the Top 50
companies overall

NSE included Lupin in the S&P CNX NIFTY index

Ernst & Young Entrepreneur of the Year 2011, for Life Sciences and Health
Care: Dr Desh Bandhu Gupta

Ernst & Young Family Business Award 2012: Ms. Vinita Gupta
 CVS Caremark Supplier Partner Award winner - Pharmacy Category for 2012
Consistent track record of growth
Net Sales - CAGR 27%
EBITDA - CAGR 29%
1,742
Figures in USD m
269
1,282
522
FY08
699
FY09
423
879
1,051
184
118
FY10
FY11
FY12
FY13
FY08
221
137
FY09
FY10
FY11
FY12
 Evolved into a multinational company with >70 % of turnover from outside India
►
4th largest pharma company in India
►
5th largest and fastest growing generic player in the US by prescriptions
►
7th largest and the fastest growing generic player in Japan
FY13
Profit & shareholder returns
Basic EPS (USD)
Net profit - CAGR 26%
Figures in USD m
242
159
160
FY08
126
75
0.18
FY09
FY09
FY10
0.36
FY11
FY12
Dividend %
92
100
FY08
0.22
0.29
0.36
FY10
FY11
FY12
125
135
FY 09
FY 10
0.54
FY13
200
150
160
FY 11
FY 12
FY13
FY 08
FY13
Corporate Highlights FY13
Net Sales USD m
EBITDA USD m
1,742
1,282
FY12
Net Profit USD m
423
242
269
FY13
FY12
 Net sales grew by 36% to USD 1,742 m during FY13
 EBITDA margins grew to 24% during FY13 from 21%
 Growth across all geographies
►
US business (including IP) grew by 49%
►
India Region Formulation sales grew at 24%
►
Japan grew by 52% and South Africa grew by 26%
160
FY13
FY12
FY13
 Continued investment for growth
► Capital expenditure at
USD 90
m.
► R&D revenue expenditure 7.5%
of net sales at USD 131 m
► Filed 21 ANDAs
Consistent execution leading to QoQ & YoY
growth
Net Sales (USD m) 454
412
409
284
321
PAT (USD m)
467
62
53
347
330
52
49
75
43
39
29
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
EBITDA %
21.7%
23.2%
19.2%
23.3%
Q1
Q2
25.6%
26.2%
FY12
21.0%
Q3
20.2%
Q4
FY13
Business Mix – FY13
Geographical breakup
Outside
India,
72%
US sales split
Brand
21%
India,
28%
Generic
79%
Major markets (Net sales)
Sales break up
API
10%
Formulations
90%
6% 10%
40%
US (including IP)
Europe
3%
India
Japan
14%
South Africa
Rest of world
25%
2%
API
Key financial indicators
Profitability / Returns
Returns
FY13
FY12
FY11
EBITDA
24.3%
21.0%
21.0%
PBT
20.3%
17.2%
17.0%
PAT
14.2%
12.8%
15.0%
ROCE
30.8%
20.0%
21.5%
Financial ratios
Ratio
Debt Equity ratio (Net)
Working capital days
FY13
FY12
FY11
0.14
0.31
0.22
93 days
99 days
86 days
Geography wise performance
United States
Net sales (USD m)
694
 Brand business grew by 13% while generics
grew by 70%
 Brands business ~21% of the US sales
466
 US business clocked USD 693 m
 Received approval for Suprax drops
 14 ANDA approvals received & 10 products
launched during the year
 Strong base business
FY12
FY13
Strong Pipeline
 116 pipeline products (market $ 54 b)
 25 first to file generics, (market ~$13 b)
 12 exclusives (market ~$1.62 b)
►
#1 in 24 out of 46 products (IMS Mar’13)
►
Top 3 in 37 out of 46 products (IMS
Mar’13)
►
5th largest generics player (IMS Dec’12)
 Challenges
 Generic challenge for Antara
India
 Ranked 7th on Month MAT Jan’13 basis.
Net sales (USD m)
435
 Chronic & Semi-Chronic therapies now
constitute 60% of the portfolio
351
 Gluconorm and Tonact contributed above
Rs.1,000m in sale
 Ranked 3rd in CVS segment as per growth rate.
 CNS/Neuro segment grew 19.1% against market
growth of 12.6%
FY12
FY13
 Ranked 7th in Anti Diabetics segment with
growth of 23.1%
 Retained its top position with 44.6% market
share in Anti TB segment
India
Therapy Mix
Gynaecology
4%
CNS
5%
Gastro Intestinal
(GI)
8%
Others
12%
Anti Diabetic
15%
CVS
22%
Anti-TB
9%
Anti - Asthma
9%
Anti Biotics.
16%
Chronic & Semi-chronic therapies now account for 60% of the portfolio
Japan
 Completed 5 years in the Japanese market
Net sales (USD m)
240
 Sales increased from USD 86 million to USD 240
million during 5 years
 In JPY terms consolidated net sales increased to JPY
159
19,785 m, entailing a YoY growth of 39%
 Kyowa excluding Irom grew by 14% to JPY 13,984m
 Supply chain integration from India:
FY12
FY13
►
Goa facility received first 3 approvals in
formulations
►
Tarapur facility received 2 approvals in API
 11 products launched during the year
ROW sales
Net sales (USD m)
 Pharma Dynamics emerged as the 5th largest
154
generic company in South Africa and the no.1
CVS company during FY13.
113
 Launched OTC products in Australia under
the umbrella of “Pharmacy Action”
 Multicare amongst the fastest growing
generic companies in the Philippines,
FY12
FY13
improving its ranking from 39 to 34 last year
 Largest supplier of Anti-TB products to WHO
API
Net sales (USD m)
694
 Strategic input into formulations
business
466
 #1 TB and Ceph player globally
 API business grew by 12% from USD
466 m. to USD 694 m in FY13
FY12
FY13
 Increasing focus on US API
R&D
131
R&D spends (USD m)
89
96
66
25
28
FY07
FY08
43
FY09
FY10
 Total expenditure at 7.5% of sales
 Talent pool of 1200+ scientists
 176 ANDA filings, of which 78 have been
approved by the U.S. FDA & 138 US
DMFs filed to date
 Filed 21 ANDAs & received 14 approvals
during the year
 Increased focus on F2F (25 filings in
pipeline)
FY11
FY12
FY13
 NDDD:
► Pipeline of 10 programs in
various phases of drug discovery
 Bio-similars:
► Approval received for GCSF
(Filgrastim)
► Pipeline of 10 drugs in various
phases of development
Future direction
Growth Levers & Enablers
• Healthy pipeline
• Value added generics
• Specialties
• NDDR program
• Disruptive costs
• Supply chain efficiency
• Geographical expansion
• Brands
• Platform technologies
R&D
M&A
Supply
Chain
People &
Capability
• Leadership pipeline & capability
building
• Sustainability initiatives (people,
planet & profitability)
Thank You