Lupin Ltd
Quarter 2
Investor Presentation
Corporate Highlights – Q2 11-12
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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
Financial Trend Q2 2011-12
Sales
+24%
Sales (Net)
EBIDTA
17,417
20,000
14,094
4,057
5,000
3,001
1,500
2,000
5,000
1,000
1,000
-
500
-
-
Q2 10-11 Q2 11-12
2,150
2,000
3,000
10,000
2,669
3,000
2,500
4,000
15,000
Net Profit
Q2 10-11
Q2 11-12
Q2 10-11
Q2 11-12
Financial Highlights : Q2 11-12
• WC : 89 days
• Debt Equity : 0.25
• ROCE : 22.8%
• Rs 17,417 Mn
• YoY growth 24%
• Rs 4,057 Mn
• YoY growth 35%
Revenue
Financial
Strengths
EBITDA
PAT
• Rs 2,669 Mn
• YoY growth 24%
Balance Sheet Ratios
Rs Mn
Particulars
Operating Working
Capital
No. of Days to Sales
ROCE (%)
Debt Equity Ratio
Q2 11-12
FY 10-11
16,089
13,082
89
83
22.8%
21.5%
0.25
0.22
Revenue Mix : Q2 11-12
Business Break up
Formulations Sales Break up
API
11%
Domestic
Sales (Net)
33%
Formulation
89%
Geographical Break up
Within India
31%
Outside
India
69%
Emerging
Market
Sales
10%
Advanced
Markets
Sales
57%
Business Update
Advanced Markets – US and Europe
6200
6000
Sales (only formulations)
USD Mn
5800
5600
5400
5981
5200
5000
4800
5161
4600
Q2 2010-11
Q2 2011-12
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 the
quarter
 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
India Region Formulations
6000
Sales
5000
Rs Mn
4000
3000
2000
4191
5120
1000
0
Q2 2010-11
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Q2 2011-12
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 Lupin’s 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
Japan
1800
Sales
1750
INR Mn
1700
1650
1780
1600
1550
1500
1567
1450
Q2 2010-11
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Q2 2011-12
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
South Africa
800
Sales
700
INR Mn
600
500
400
679
300
200
422
100
0
Q2 2010-11
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Q2 2011-12
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
ROW
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New brand launches in Philippines in specialized Oncology portfolio.
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Brand acquisition and in-licensing – a common theme across markets
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OTC promotion support in mass media
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Created thrust in three countries across CIS – Russia, Ukraine and
Kazakhstan
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Strategic focus on tender / hospital business in CIS
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Increased focus on brand building and entry into retail chains
API and Intermediates
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Cost, quality and reliability are the cornerstones of our API strategy
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Global leadership in chosen therapies
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Cephs
Ceph-intermediates
Anti-TB range
Lisinopril
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Achieved global cost, capacity and market share leadership in most
products
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Strategic input into formulations business
Research and Development
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Talent pool of 1000+ scientists
153 ANDAs, 111 DMFs
Ability to churn out rich pipeline across geographies
Increased focus on F2F and Para IV’s
Strength in drug delivery
Litigation Settlements – Loestrin Fe, Femcon Fe, Minocycline
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Revamping Drug Discovery
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Bioadhesive
Laser-drilled
Matrix/coated
Taste-masking
Requisite infrastructure in place
Market
US
EU
Filings
153
102
Total expenditure Q2 2011-12 – Rs. 1,380 Mn, 7.9% of Net sales
Approval
54
51
US Generics Pipeline
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153 products filed, 54 approved
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Para IV’s addressing market size of US$ 30 Bn
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F2Fs – Desloratadine, Memantine, Duloxetine, Eszopiclone, Ziprasidone,
Lanthanum Carbonate, Pregabalin, Lo-Seasonique, Seasonale
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Exclusive F2Fs – Fortamet, Glumetza, Cipro DS
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Differentiated products
 Oral contraceptives
 Ophthalmic
 Niche products – Niacin XR, Esomeprazole, Tricor, Sevelamer
The Way Ahead
Lupin’s Core Strength in Generics
Managing the Environment
Advantage
• Local market knowledge
• Speed & agility
• High quality products
• Low cost manufacturing
Focal Points
Increase Market Share
Life
Cycle
Manage
ment
New
Product
Launches
Branding / Differentiation
Innovation
led VAGs
Acquisitio
ns
Value
Added
Generics
Life Cycle Management
Continuous Improvement
on the Cost front
Increased
Market
Share
Flawless
Execution
Increase Margins
Capacity Leverage
Better realization through
Value added products
Thank You