Lupin Ltd
Quarter 3
Investor Presentation
Corporate Highlights – Q3 10-11

19 consecutive quarters of growth in sales and profits

Net sales grew by 17% to Rs. 14,672 million during Q3, FY 2010-11, up from Rs. 12,554
million (Q3 FY 09-10)

Net profits grew by 39% to Rs. 2,240 million during Q3, FY 2010-11, as compared to Rs
1,606 Mn. (Q3 FY 09-10)
Growth across all geographies
 US business grew by 15% in USD terms
 Japan grew by 12% in JPY terms
 S African business grew at 37% in ZAR terms
 India Region sales continued to grow at 16%
Capex spend at Rs 107 Crores to meet expected demand.
Revenue Expenditure on R&D increased by 0.5% to Rs. 1178 Mn., amounting to 8% of
Net Sales during Q3, FY 2010-11, as against Rs. 939 Mn., 7.5% of Net Sales (Q3, FY 200910)
During the quarter the company filed 5 ANDA’s bringing the Cumulative filings as of Q3,
FY 2010-11, to 137 filings, of which 47 have been approved by the US FDA
Strategic alliance with Farmanguinhos and Department of Health, Brazil.
Settled litigations with Sunovion over Generic of Lunesta
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Financial Trend YTD December 2010-11….
Sales
+21%
Net Sales
EBIDTA
Net Profit
45,000
10,000
7,000
36,000
8,000
6,000
5,000
27,000
18,000
6,000
41,843
34,557
9,000
4,000
4,000
8,859
6,952
2,000
2,000
-
YTD 10-11
4,610
1,000
-
-
YTD 09-10
6,354
3,000
YTD 09-10
YTD 10-11
YTD 09-10
YTD 10-11
Financial Trend Q3 2010-11….
Sales
+17%
Sales (Net)
Net Profit
EBIDTA
17,500
3,500
2,500
14,000
2,800
2,000
10,500
2,100
12,554
7,000
14,672
1,400
3,007
2,619
1,000
700
3,500
-
Q3 09-10
Q3 09-10
All figures are in Mn
Q3 10-11
2,240
1,606
500
-
-
1,500
Q3 10-11
Q3 09-10
Q3 10-11
Financial Highlights : Q3 10-11
• WC : 87 days
• Debt Equity : 0.25
• Rs 14,672 Mn
• QoQ gr – 17%
• Rs 3,007 Mn
• QoQ gr – 15%
Revenue
Financial
Strengths
EBITDA
PAT
• Rs 2,240 Mn
• QoQ gr – 39%
Balance Sheet Ratios
Rs Mn
Particulars
Operating Working
Capital
No. of Days to Sales
ROCE (%)
Debt Equity Ratio
Q3 10-11
FY 09-10
13,383
11,869
87
91
21.7%
22.5%
0.25
0.37
Revenue Mix : Q3 10-11
Business Break up
Business Mix
Geographical Break up FD
Sales
API
15%
Formulation
86%
Geography Breakup
32%
US Sales
41%
EU Sales
Japan
Emerging Market Sales
Domestic Sales (Net)
Within India
33%
Outside
India
67%
8%
14%
5%
Corporate Highlights FY 09-10
15 consecutive quarters of growth in sales and profits
 Growth across all geographies
 US business grew by 28% in dollar terms
 Japan grew by 10% in JPY terms
 S African business grew at 34% in ZAR terms
 India Region sales continued growth rate at 18%
 Capex spend at Rs 443 Crores to meet expected demand
 Year of strong research delivery

37 ANDAs and 19 DMFs filed in the year
 IP settlements – Lotrel (Benazepril/Amlodipine), Namenda
(Memantine)
 Licensing of Rifaximin ER to Salix for the US
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Year of Regulatory compliance
Mandideep facility cleared of Warning Letter in 7.5 months
 All plants inspected by FDA
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Financial Trend 09-10…..
Sales
+25%
CAGR29%
All figures are in Mn
CAGR 45%
CAGR 49%
Business Update
Advanced Markets – US and Europe
Sales
USD 000
120,000
100,000
80,000
60,000
40,000
95,857
110,530
20,000
2009-10
2010-11
Generics – US
 Settled ongoing litigations with
Sunovion over Generic of Lunesta.
 5th largest Generic player in the U.S. in
terms of prescriptions (IMS Health)

Generics business grew by 49%

No. 1 in 13 out of 29 products marketed
Top 3 in 28 of the 29 products
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Generics – EU
 Recorded impressive growth of
72% during the quarter.
 Launched Trimetazidine, where
Lupin was the first to get
approval
 Launched Clarithromycin XL in
France during the quarter
 Cefpodoxime Proxetil tabs
France – 72% market share
 Ceftiofur – Ranked #1 generic
Branded
 Branded portfolio forms 29% of
US Turnover
India Region Formulations
Rs Mn
Sales

4,000

3,200
2,400
1,600
3,446
4,005

800
-
2009-10
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2010-11
6 products find a place among
the top 300 in the industry
11 new products launched in
the Quarter
Aggressive focus on brand
building
Extensive collaboration with
thought leading institutions
Continues to be among the
fastest growing pharma
company in the domestic space
@ 16%

Contributed 27% to Lupin’s
overall revenues during Q3, FY
2010-11

Branded business grew by 14%
Current Field Force strength at
4183

Japan
Sales
JPY Mn
2,500
2,000
1,500
2,844
3,172
1,000
500
2009-10
2010-11
Launched 5 new products till
date, namely Latanoprost ED
Fluvoxamine , Rabeprazole,
Omeprazole Inj and Glimeperide
 Market leader in Risperidone in
terms of units
 Significant player in Amlodipine

Profit enhancement
measures to yield greater
results in the days to come
 Registered Net Sales of Rs.
1727 Mn and contributed
12% to Lupin’s consolidated
revenues during the quarter
 Identified 4 products for
manufacturing shift to Goa
plant

3,000
South Africa
ZAR Mn
Net Sales

80
70
60

50
40
30
77

56
20
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10
2009-10
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2010-11
Growth sustained at over 37% in
ZAR terms
Leaders in Amlodipine and
Bilocor in unit sales
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
ROW

New brand launches in Philippines
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Women’s health, primary care and pediatric segments

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
and Kazakhstan

Strategic focus on tender / hospital business paying rich
dividends 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

Global leadership in chosen therapies
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Cephs
Ceph-intermediates
Anti-TB range
Lisinopril

India’s most profitable API entity – ROCE 36%

Achieved global cost, capacity and marketshare leadership in
most products

Strategic input into formulations business
Research and Development
Talent pool of 700+ scientists
 137 ANDAs, 105 DMFs
 Litigation Settlements – Loestrin Fe, Femcon Fe.
 Ability to churn out rich pipeline across geographies
 Increased focus on F2F and Para IV’s
 Strength in drug delivery
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Revamping Drug Discovery
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Bioadhesive
Laser-drilled
Matrix/coated
Taste-masking
Market
US
EU
Filings
137
86
Approval
47
38
Requisite infrastructure in place
Total expenditure Q3 2010-11 – Rs. 1,178 Mn, 8% of Net sales
US Generics Pipeline

137 products filed, 47 approved

Para IV’s addressing market size of US$ 30 Bn

F2Fs – Desloratadine, Memantine, Duloxetine, Eszopiclone,
Ziprasidone, Lanthanum Carbonate, Pregabalin, LoSeasonique, Seasonale

Exclusive F2Fs – Fortamet, Glumetza, Cipro DS
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Differentiated products
Oral contraceptives
 Ophthalmic
 Niche products – Niacin XR, Esomeprazole, Tricor, Sevelamer
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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