Direct. Diversified. Driven. Warm Welcome Shareholders

Transcription

1 Direct. Diversified. Driven. Warm Welcome Shareholders 26th Annual General Meeting Sep 15, 2017

2 FY 2017 at glance

3 A year of solid growth and margin expansion FY 2016 FY 2017 Pharma Revenues 28,499 35,106 23% Pharma EBITDA 5,417 7,230 33% EBITDA Margin % 19% 21% 160 bps INR in Millions

4 Executing the strategic plan Strong Operating Performance R&D Gains Momentum Solid Financial Results Regulated market growth driven by strong performance in North America and Australia Strong R&D infrastructure with 2 facilities including new state of the Art research centre in Bangalore Pharma revenuesfor FY 2017 at INR 35,106 Mn up 23% YoY Emerging markets growth driven by newly acquired business in Kenya (Universal Corp) R&D team strength of 500+ Pharma EBITDA for FY 2017 at INR 7,230 Mn up 33 % YoY Institutional business delivered steady performance Formulations and API R&D teams working on a Joint development platform to build a portfolio of Integrated products Focussed approachon profitability helped deliver healthy EBITDA margin expansion of 160 bps to 21% API focus shifted tomargin improvement and captive consumption 9 ANDA filings Net D/E at comfortable level of 0.78x, 4

5 Business attains critical mass FY 2016 FY % Revenue Revenue 40% INR Regulated markets 16% INR + 56 % YoY 28,499 Mn 35,106 Mn 51% +23% YoY 15% 21% 13% 18% Regulated Emerging Institutional API Regulated Emerging Institutional API FY 2016 Strategic M&A activity FY 2017 Revenue US$ 425 Mn Acquisition in Africa Acquisition of Generic Partners Acquisition of Pediacare Revenue ~ US$ 524 Mn Supply chain security Building a global OTC EBITDA Margin 19 % Universal Kenya for Australian Market portfolio EBITDA Margin 21 % 5

6 Strategic growth pillars driving performance In INR Mn 17,762 Regulated Markets Emerging Markets Institutional In North America, Front ends grew market share with marginal price erosion and the partnered portfolio witnessed certain pricing challenges. During FY 17 Company received 6 new product approvals for US Arrow has launched a total of 20 new products in FY 17 and will continue to expand its product portfolio including new products from Generic Partners. The branded generics business and Universal corporation business in Africa delivered a steady performance despite impact from depreciation in key billing currencies of EUR and USD. Added ~ 50 medical reps in Africa for the branded business during FY17. India brands business reported a tepid performance due to a carry forward impact of demonetization in the early half of the quarter. Decline in institutional business attributed to donor funding decline, while the Company has been able to maintain its market share The ARV business continues to witness healthy traction. Initiated tech transfer of existing institutional products to WHO approved facility of Universal Corporation in Kenya, supplies to start in H2 FY ,395 FY 16 FY 17 6,330 3,839 FY 16 FY 17 5,951 5,677 FY 16 FY 17 PSAI Portfolio rationalisation and increased captive consumption for the formulations helped deliver superior margins for the API business during the year. Scaled up filings for high entry barrier markets like Japan and Korea. 7,314 5,336 FY 16 FY 17

7 Strides 2.0 Global Turnover INR 35,106 Mn Global Presence 100+ countries Market Cap * INR 98,230 Mn Stridians Mfg. facilities 9 plants across 3 continents R&D centers 2 with Global filing capacities Balance sheet Size INR 81,168 Mn Shareholder s fund INR 27,104 Mn Net debt to Equity 0.78x * As at March 31, 2017

8 Post Balance Sheet date developments 4 Successful USFDA audits Seven product approvals received from USFDA Ibuprofen Tablets (Market Value US$ 520 Mn), Cetrizine(Market Value US$ 60 Mn), Memantine Tablets (Market Value US$ 60 Mn), Amantadine Caps (Market Value US$ 25 Mn), Amantadine Tablets (Market Value US$ 22 Mn) and Promethazine Tablets(Market Value US$ 17 Mn) Potassium Citrate ER Tablets (Market Value US$ 110 Mn) Closure of previously announced transactions: VivimedJv sand acquisition of Perrigo API facility Acquisition of Amneal Australia

9 AGM Agenda Ordinary Business 1. Adoption of Audited Financial Statements for the year ended March 31, Declaration of Final Dividend of Rs. 4.50/- per equity share 3. Appointment of Director in place of Mr. Deepak Vaidya, retiring director and being eligible, offers himself for re-appointment 4. Appointment of M/s. BSR & Co. LLP as Statutory Auditors of the Company Special Business 5. Appointment of Mr. Homi Rustam Khusrokhan as an Independent Director of the Company 6. Appointment of Mr. Shashank Sinha as Managing Director of the Company 7. Appointment of Mr. Badree Komandur as an Executive Director Finance of the company 8. Amendment of Article 94 of the Articles of Association of the company 9. Ratification of remuneration payable to M/s. Rao, Murthy & Associates, Cost Auditors of the Company for the Financial Year