Laurus Labs Limited — Investor Presentation 2021

Apr 29, 2021

Laurus Labs Limited Corporate Office 2"d Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad - 50003~. Telangana, India T +91 0 6659 ~333, 3980 333, 232 0500 I 501 F +91 ~0 6659 ~320 I 3980 ~320

April29, 2021

To	To
The Corporate Relations Department	The Listing Department
BSE Limited	National Stock Exchange of India Limited
Phiroz Jeejeebhoy Towers, 25th Floor,	Exchange Plaza,
Dalal Street	Bandra Kurla Complex, Bandra (East)
Mumbai -400001	Mumbai -400 051
Code: 540222	Code: LAURUSLABS

Dear Sirs,

Sub: Investors/ Analysts Presentation

Please find enclosed the presentation to the Investors/ Analysts on the Standalone and Consolidated Financial Results of the Company for the Quarter and year ended March 31, 2021, for the Investors/ Analysts call scheduled on April 30, 2021, which was already intimated on April 26, 2021.

The presentation is also being uploaded on the website of the Company www.lauruslabs.com.

Please take the information on record.

Thanking you,

Yours sincerely, For Laurus Labs Limited

G. Venkateswar Redd~ ____, Company Secretary

Encl: As above

LAURUS Generics LAURUS Generics LAURUS Synthesis LAURUS Ingredients Active Pharmaceutical Ingredients & Intermediates Finished Dosage Forms Contract Development & Manufacturing Services Specialty Ingredients lor Nutraceutical & Allied Industry

Q4 & FY21 INVESTOR PRESENTATION April 29, 2021

BSE: 540222 NSE : LAURUSLABS

Disclaimer

This presentation contains statements that constitute "forward looking statements" including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, such statements reflect various assumptions concerning future developments and a number of risks, uncertainties and other important factors that could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, regulatory and legislative developments which could adversely affect our business and financial performance.

Laurus Labs undertakes no obligation to publicly revise any forward looking statements to reflect future events or circumstances.

No part of this presentation may be reproduced, quoted or circulated without prior written approval from Laurus Labs Limited.

Consistent Quarterly Performance

* The equity shares of the Company of ₹ 10/- each sub-divided into 5 equity shares of ₹ 2/- each w.e.f. September 30, 2020, accordingly EPS has been restated. YOY Gr : FY 21 full year vs FY 20 full year

3

₹ Cr

Business Snapshot

Division	Generic API	•Generic FDF	•Synthesis (CDMO)	•Bio
Overview	•Development, manufacture and sale ofAPIs andAdvanced Intermediates•Leadership in various High Value andHigh Volume APIs with sizeable GlobalMarket share.•High potent manufacturing units.	•Developing and manufacturing oral solidformulations for LMIC,North America & EUMarkets.•Backed by in house API strengths	•Contract development and manufacturingservices for global pharmaceuticalcompanies and several latestage projectsexecuted•Steroidsand Hormone manufacturingcapability	•Bio -ManufacturingCompany•Recombinant products -animal origin freeproducts for safer, viralfree bio manufacturing•Precision Fermentationcapabilities -scale upexpertise and large scalemanufacturingcapabilities
Products andService Offerings	•Anti –Viral•Anti-diabetic•CVS•PPIs•Oncology	•Anti –Viral•Anti-diabetic•CVS•PPIs•CNS	•Commercial scalecontract manufacturing•Clinical phase supplies•Analytical and researchservices•Nutraceuticals, dietarysupplements andcosmeceutical products	•Access to Bio basedtechnical expertise (usedin Vaccine, insulin,biologic, manufacturing•Enzymes bio-catalysis(Green API process)•Large Fermentationcapability
Filings	•Commercialized 60+ products•61 DMFs filed	•Filed 27 ANDAs with USFDA and 9 Finalapprovals and 8tentativeapprovals Inaddition completed 2 products validation•Field 12 dossiers in Canada, 9 in Europe, 8with WHO, 2 in South Africa, 2 in India & 14products filed in various ROW markets.	•API validation planned in Unit 05•Customdevelopment of ophthalmic portfolioinitiated•LSPL –API validations planned
Infrastructure	•4 Manufacturing facilities, (4,186 KL) (1)(2)•~1,000 KL under expansion	•5bn Units / year capacity•Capacityenhancement under progress	•Dedicated manufacturing (Unit –5) Capacity(137KL) for steroidaland hormonalintermediates•Set up a dedicated block in Unit 4 for highpotent phytochemicals APIs•Incorporated Laurus Synthesis Capacity (149KL)	•2 manufacturingfacilities. The first onehas fermentationcapacity of 10,750 Ltswhile the second facilityhas 180,000 Lts
(1)	Includes ingredients products excluding Unit 2 API & Kilo lab(2)	APIs , Ingredients and Synthesis (other than Aspen supplies) are		4

capacity

manufactured at Unit 1,3 ,4 & 6

Segmental Revenue Breakup

• Generic API division showcased a robust growth of 61% YoY
  • Anti Viral segment recorded a robust growth of 70% YoY
• Generic FDF Revenue Showcased a healthy growth of 102% YoY
  • The growth was led by higher LMIC Market volumes and increased volumes from North America and EU
  • Commenced marketing of in-licensed products in the USA to leverage front-end capabilities
• Custom Synthesis division recorded a strong growth of 35% YoY

₹ Cr

Generic API Division

• Strong demand in 1st line ARV API
• Order book position is robust
• Adding more capacity to meet the growing demand
• Other API segment (incl. CVS and Diabetes) reported good growth
• Under discussion with Key Generic Partners for CM opportunity
• Creating dedicated block for Non-ARV APIs including expansion for High Potent capacity at Unit 4

Generic FDF Division

• FDF Business delivered robust growth for the quarter. This is driven by continued strong demand in ARV segment of LMIC region and portfolio expansion in developed markets
• Overall FDF revenue for FY 21 grew by 102% YoY
• Strong order book in all geographies
• 2 Additional products validated as part of our CDMO expansion in EU
• FDF capacity debottlenecking completed
• New manufacturing block will be commercialized by Sep 2021

• Synthesis business delivered robust growth for the quarter
• Total Number of Active Projects in the CDMO division stood at the end of FY21 was 50 (vs 40 in FY20)
• Multiple Partnership proposals are in collaborative phase.
• Created a 100% subsidiary for Synthesis business and acquired small facility at Vizag under this. Also, creating a dedicated R&D center for the Synthesis Division

Capabilities *	As onMar-11	As onMar-16	As onMar-21
Description of theCompany	ARV APIcompany	APICompany	PharmaceuticalCompany
Team Strength	883	2,266	4,808
Manufacturing units	1	2	8
Reactor Volume (KL)	220	1,870	4,638
Formulation OSD (bn)	-	2	5
DMF's	12	28	61
ANDA's -Total filed-Para IV-First to File	-	-	2727
Patents-Filed-Granted	48-	21825	292150
US FDA approvedmanufacturingsites	1	2	5

Financials (₹ Cr) *(for each period of 5 Yrs)Sources	FY 06-FY 11	FY 11-FY 16	FY16-FY 21
Cash Profit (PAT +Dep)	7	633	2,478
Equity incl.Sec. Premium	127	359	313
Net Debt	230	773	390
Total -Sources	365	1,765	2,991
Application
Grossblock addition	241	1,187	1,984
NWC addition	123	572	856
Dividend	0	6	151
Total -Application	365	1,765	2,991

* Consolidated numbers

5 year Division wise Revenue Contribution

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Financial Track Record – Trend from FY17 to FY21 ₹ Cr

5 years Return Ratios

Note: Based on consolidated financials as per Ind AS

• (1) Pre-tax RoCE is calculated as EBIT/Average Capital Employed. Capital employed is defined as Net Worth + Long Term and Short Term Borrowings + Current Portion of Long Term Borrowing - Cash
• (2) RoE is calculated as PAT/Average Net Worth
• (3) Net Debt means total debt less cash balance

Net Debt ₹ Cr	FY 17	FY 18	FY 19	FY 20	FY 21
Long-Term	198	221	352	266	567
Short-Term	644	759	684	791	886
Gross Debt	842	980	1,036	1,057	1,453
Less: Cash & Bank balances	(2)	(3)	(3)	(2)	(48)
Net Debt	840	977	1,033	1,055	1,405

Manufacturing Facilities at Parawada, Vizag

• API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing.
• Commenced operations in 2007.
• 328 reactors with 1,226 Kilo Liters capacity.
• Received approvals from US FDA, WHO-Geneva, NIP Hungary, KFDA, COFEPRIS, PMDA, ANVISA & JAZMP – Slovenia.

• API manufacturing facility and includes capacity for ingredients, synthesis and contract manufacturing.
• Commenced operations in 2015.
• 259 reactors with 1,982 Kilo Litres capacity.
• Received approvals from USFDA, WHO Geneva, NIP Hungary, COFEPRIS, KFDA, ANVISA & JAZMP – Slovenia.

• A dedicated Hormone and Steroid facility for Aspen
• Commenced operations in 2017.
• 46 reactors with 137 Kilo Litres capacity .

Manufacturing Facilities at Atchutapuram, Vizag

• Located at APIIC, Atchutapuram, Visakhapatnam, India. (SEZ)
• FDF and API manufacturing facility
• Commenced operations in 2017.
• FDF capacity of 5 bn tablets/capsules per year. Capacity expansion initiated and will be operational by Q1 FY22
• API block with 12 reactors with 83 Kilo Liters capacity.
• Received approvals from BVG Hamburg Germany, USFDA, WHO Geneva, JAZMP Slovenia, ANVISA and various African Countries

• API manufacturing facility and includes capacity for Ingredients, Synthesis and Contract Manufacturing.
• Commercial operations in 2018
• 54 reactors with 221 Kilo Liters capacity
• Received approval from WHO, USFDA and COFEPRIS Mexico

• Located at APIIC, Atchutapuram, Visakhapatnam, India.
• API manufacturing facility.
• Commercial operations in 2018
• 68 reactors with 758 Kilo Liters capacity.
• Received approval from USFDA

Quality Focus & Regulatory Audits

Facility	Key Agencies	Recent Inspection Year	No of USFDAaudit ( sinceinception
Kilo Lab –R&D	USFDA	2016 –EIR received	3
Unit 1	USFDA, WHO –Geneva, ANVISA,COFEPRIS –Mexico and JZAMPSlovenia	2019 -20 –EIR Received,and cGMP certification received	5
Unit2	USFDA, WHO –Geneva,BGVHamburg, ANVISA, JZAMP –Slovenia & Various AfricanCountries	2019-20–EIR Received, andcGMP certification received	3	Laurus'Philosophy"One QualityStandard for all
				markets"
Unit 3	USFDA, WHO –Geneva, ANVISA,COFEPRIS –Mexico and JZAMPSlovenia	2019 -20 –EIR received, andcGMP certification received	5
Unit 4	WHO, USFDA & COFEPRIS –Mexico	2019-20–EIR received & cGMPcertification received	1
Unit 5	No DMFs Filed
Unit 6	USFDA	2019 –EIR received	1	15

Strong R&D Capabilities

Current Filings Status

Therapy	US ANDA	Europe	Canada
ARV	16	4	5
Anti-Diabetic	3	3	3
CVS	3	-	1
CNS	1	1	1
Others	4	1	4
Total	27	9	14

	DMFs	PatentsFiled	PatentsGranted
CumulativeFilings	61	292	150

• Invest in portfolio based on complexity and scale
• Creating separate R&D center for Synthesis Division
• Filing pace to increase in FY 22 across markets

Covid-19 Response Combatting without Compromising on strategic priorities

Outlook for FY22 & Beyond

Healthy Revenue visibility on the back of robust Order Book

• Partnership with Global Fund offers higher volume contracts with reasonable predictability in FDF Tender business.
• Have a healthy order book for FY 22 & beyond in FDF CMO business with a strategic partner in EU
• Robust growth in Other API segment to continue on the back of higher order book visibility from key therapeutic segments like CVS, Anti Diabetic and PPIs
• Several new customers added with programs in various clinical phases
• Incorporated a Wholly Owned subsidiary to give increased focus and eventually dedicated R&D and Manufacturing for Synthesis Business
• Other therapeutic areas and Oncology to offer consistent opportunities to broaden scope, with ongoing new product introduction

Changing business mix to drive growth

• Generic FDF segment contributed ~35% in FY 21 to total revenue as against just 2% in FY19
• Non ARV API business to contribute significantly showcasing the speed of diversification of revenues.
• The change in revenue & product mix to generate better profitability & margins
• Synthesis business to show gains in line with new customer additions in CDMO
• Acquired Aspen's South African Subsidiary, in order to get a foothold in worlds' largest Generic Accessible ARV market
• The Richcore (renamed as Laurus Bio) acquisition will help us enter into high growth segments of AOF products, Enzymes and Biologics

Capacity augmentation to result in better return ratios

• Among top 5 in India in terms of Reactor capacities
• All the green field expansion have turned Cash positive in FY20 with near maximum utilization
• Continue to undertake Brown Field Capex programs for Capacity addition in line with strong order book visibility and business outlook
• Brown Field capex in existing sites to have shorter payback period and ROCE accretive
• Doubling our FDF capacity by FY22
• Acquired assets of an API Unit in Vizag to be used for backward integration and pre-clinical chemistry
• Initiating green field expansion for all the divisions (API, FDF and Synthesis)

Key Milestones

Board of Directors & Leadership Team

Executive Directors
Name	Background
Dr Satyanarayana Chava	 Whole-time Director, Founder and Chief Executive Officer
Ravi Kumar V V	 Whole-time Director and CFO
Dr Lakshmana Rao C V	 Whole-time Director and Head, Quality

Non-Executive Directors
Name	Background
Dr. M. Venu Gopala Rao	 Non Executive Chairman and Independent Director
Chandrakanth Chereddi	 Non-Executive Director, Former Head of Generic FDF andStrategy at Laurus Labs Limited
Aruna RajendraBhinge	 Independent Director; FormerHead of Food Security Agenda, APAC at Syngenta India Limited
Dr. Rajesh Koshy Chandy	 Independent Director; Professor of Marketing at the London Business School
Dr. Ravindranath Kancherla	 Independent Director and Founder-Member and Treasurer of ELSA of Asia in Singapore and Chairman ofGlobal Hospitals

Dr. Satyanarayana Chava Founder & CEO

Mr V.V Ravi Kumar ED & CFO

Dr. Lakshmana Rao C V ED & Head, Quality

Dr. V Uma Maheswer Rao Exec. VP & Head, API & R&D

Mr. S. Srinivasa Rao Exec. VP – Operations

Head – Synthesis Division

G. Venkateshwar Reddy CS & AVP – Legal & Secretarial

Ownership Structure

Results conference call on Friday April 30, 2021 at 11:00 AM IST

Details of the conference call are as follows

Location	Dial-In Details
Conference dial-in Universal Dial-In	+91 22 6280 1148
India Local access Number	+91 22 7115 8049 Available allover India
Singapore	800 101 2045
Hong Kong	800 964 448
USA	1 866 746 2133
UK	0 808 101 1573

For Diamond pass please Copy this URL in your browser:

https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=7598724&linkSecurityString=1972ca58c0

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Contact us

About Laurus Labs Ltd.

Laurus Labs is a leading research driven Pharmaceutical manufacturing Company in India. We have grown to become one of the leading manufacturers of API for Anti-Retroviral (ARV), Oncology, Cardiovascular, Anti-Diabetics, Anti-Asthma and Gastroenterology .We are thriving on growth opportunities in formulation manufacturing to service all leading markets of North America, Europe and Low Middle Income Countries (LMIC). We are driving growth opportunities in Contract Development and Manufacturing through our Synthesis business. Most of our manufacturing facilities are approved by major regulatory authorities USFDA, WHO-Geneva, UK-MHRA etc. Our approach remains to identify and invest ahead of time with strategic investments in State-of-the-Art R&D and Manufacturing Infrastructure enabling us to become a quality supplier of high volume products. Corporate Identification No: L24239AP2005PLC047518.

Laurus Labs continues to be in the Fortune 500 Companies List in India since 2017

Laurus Labs is certified as "Great Place to Work" for the third consecutive year 2020

For more information about us, please visit www.lauruslabs.com or contact:

Vivek Kumar Tel: +91 040 6659 4366 Email: investorrelations@lauruslabs.com

Thank You