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Zydus Lifesciences Limited 1 Earnings Presentation: Q4 & Full Year FY25 20th May, 2025 zyd us Dedicated To Life
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Disclaimer and Safe Harbor Statement • THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “projects”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. • By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward- looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company’s actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and expansion plans (iii) changes in regulatory norms applicable to the Company (iv) technological changes (v) investment income (vi) cash flow projections etc. • The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. This document is just a Presentation and is not intended to be a “prospectus” or “offer document” or a “private placement offer letter” (as defined or referred to, as the case may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company’s equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company’s securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever. 2 zyd~ Dedicated To Life
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Q4 FY25: At a Glance ❑ Total revenues grew 18% YoY. ❑ India branded formulations business posted double-digit growth and outpaced the market growth. ❑ Consumer Wellness business delivered robust double-digit growth aided by strong volume uptake. ❑ US formulations business continued its upward journey with a robust growth driven by volume expansion and new product launches. ❑ International markets business grew in double-digit driven by strong demand led growth across geographies. ❑ EBITDA margin stood at 32.6%, up 310 bps YoY. ❑ Capex (organic) for the quarter: Rs. 3,202 mn. ❑ Net cash: Rs. 48,836 mn (at 31-Mar’25) vs 8,561 mn (at 31-Mar’24) Highlights of Q4 FY25 Rs. 65,279 mn 18% YoY Revenues from Operations Rs. 4,799 mn 7.4% of revenues R&D Rs. 21,255 mn 32.6% of revenues 30%YoY EBITDA & Margin % Rs. 13,905 mn 18% YoY Net Profit ex. Exceptional Business-wise Sales Break-up (Rs. mn) and YoY Growth 3 Total 62,902 ▲11% ▲12% ▲17% ▲17% ▲24% Regulatory Updates ❑ Ambernath API manufacturing facility received an Establishment Inspection Report (EIR) with No Action Indicated (NAI) status against an inspection conducted in February, 2025. The inspection was concluded without any observations. ▼23%▼10%
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53,843 70,585 FY24 FY25 16,305 13,876 21,255 Q4FY24 Q3FY25 Q4FY25 13,096 18,555 FY24 FY25 3,516 5,031 4,799 Q4FY24 Q3FY25 Q4FY25 Key Financial Metrics (1/2) Total Revenues (Rs. mn) EBITDA (Rs. mn) and EBITDA Margin % Total R&D (Rs. mn) and % to Revenues Gross Profit (Rs. mn) and Gross Margin % 4 55,338 52,691 65,279 Q4FY24 Q3FY25 Q4FY25 1,95,474 2,32,415 FY24 FY25 39,223 36,857 48,308 Q4FY24 Q3FY25 Q4FY25 1,33,192 1,69,035 FY24 FY25 70.9% 69.9% 68.1% 72.7% 74.0% 6.4% 9.5% 7.4% 6.7% 8.0% 29.5% 26.3% 32.6% 27.5% 30.4%
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65,354 71,427 62,596 60,585 56,629 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Key Financial Metrics (2/2) PAT ex. Exceptional (Rs. mn) 5 Net Cash (Rs. mn) Organic Capex (Rs. mn) Net Working Capital* (Rs. mn) *Net working capital includes Inventory, Trade receivables and Trade payables. 8,561 18,922 25,906 30,916 48,836 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 11,823 10,235 13,905 Q4FY24 Q3FY25 Q4FY25 38,737 47,451 FY24 FY25 2,126 2,907 3,202 Q4 FY24 Q3 FY25 Q4 FY25 8,628 12,140 FY24 FY25
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India Formulations business Sustained market outperformance led by strong volume uptake Highlights for the quarter ▪ Branded business grew faster than the market with 11% YoY growth, driven by high uptick in pillar brands and innovation products. ▪ Secondary sales grew faster than the market with 10% YoY growth. Strong performance in chronic segment and overall higher than market growth in key therapies led to outperformance. ▪ Share of Chronic portfolio has gone up consistently over the years and stood at 43%*, an improvement of 400 bps over the last 3 years. *Source: IQVIA MAT March 25 10.7% Q4 FY25 Gr. YoY 1.6%QoQ Brand building - a key growth driver 1000+ 500 to 1000 250 to 500 # of Brands Brand Value (Rs. Mn)* 10 20 36 Therapy-wise Break-up* 6 25% Q4 FY25 Revenue Contribution FY25 Gr. 10.1% Q4FY24 Q3FY25 Q4FY25 FY24 FY25 Cardio- Diabeto 16% Respi 13% Gynae 6% Onco 9%Nephro 4% Hepato 2% GI 9% Derma 6% Pain 8% Anti- infectives 13% Others 14%
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Consumer Wellness ▪ Growth was largely driven by strong 13% volume growth. ▪ Personal care segment witnessed strong consumer traction and achieved robust double-digit growth. ▪ Food and nutrition segment also registered strong double-digit growth driven by category expansion & product innovation and supported by acquisition of Naturell (India) Pvt. Ltd. ▪ Naturell (India) Pvt. Ltd. is a leading player in healthy snacks category with a brand portfolio of Max Protein and Rite Bite. 7 17.1% Q4 FY25 Gr. YoY 102.3%QoQ Strong volume uptake driven by robust demand across categories Key brands continued to hold dominant market share Brand Name Market Share# 58.8% 33.8% 95.9% 7.7% 48.5% 77.7% 4.0% #Source: Nielsen and IQVIA MAT March 2025 report * Facial cleansing segment includes Face wash, Scrub and Peel-off. Facial Cleansing * Scrub Peel Off Highlights for the quarter 14% Q4 FY25 Revenue Contribution FY25 Gr. 16.5% Q4FY24 Q3FY25 Q4FY25 FY24 FY25
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US Formulations business Base business volume expansion and new launches led to strong growth ▪ Base business grew sequentially every quarter through the year driven by volume expansion and new launches. ▪ Launched 5 new products, filed 3 ANDAs and received approval for 6 ANDAs during the quarter. ▪ For the full year, filed 27 ANDAs and received approval for 24 new products (incl. 5 tentative approvals). ▪ For the full year, launched 17 new products in the generics space. On the specialty front, Launched all 3 brands of Sitagliptin 505(b)(2) franchise viz. ZituvioTM, ZituvimetTM and ZituvimetTM XR tablets. Continued investment to build the generics pipeline 8 24.1% Q4 FY25 Gr. YoY 29.9%QoQ Highlights for the quarter Q4 FY25 Revenue Contribution ^ includes 5 tentative approvals in FY25 and 27 on a cumulative basis. Q4 FY25 Revenue Contribution Q4FY24 Q3FY25 Q4FY25 FY24 FY25 $ 304 mn $ 285 mn $ 363 mn $ 1049 mn $ 1307 mn FY25 Gr. 27.2% 3 6 Filings Approvals ANDA filings and approvals - Q4 FY25 27 24 Filings Approvals ANDA filings and approvals - FY25 ^ 486 421 Filings Approvals ANDA filings and approvals - Cumulative ^
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International Markets Formulations business Strong growth on the back of resilient demand across markets ▪ Sustained the growth momentum with a strong demand led growth across geographies. ▪ Focused on expanding the presence in select therapies across key markets by leveraging the global R&D portfolio of generics and specialty products. 9 11.8% Q4 FY25 Gr. YoY -2.7%QoQ Highlights for the quarter Q4 FY25 Revenue Contribution Q4 FY25 Revenue Contribution FY25 Gr. 13.8% Q4FY24 Q3FY25 Q4FY25 FY24 FY25
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NCE: Saroglitazar Magnesium • Data monitoring and follow-up is going on post the completion of patient recruitment for Phase II(b)/ III clinical trials for PBC indication and Phase II(b) clinical trials MASH indication for the US market. NCE: Usnoflast • Received the USFDA approval to conduct Phase II(b) clinical trials in patients with ALS. • The USFDA has also granted an ODD status to the molecule for ALS indication. Vaccines R&D • With the support of Gates Foundation, initiated development of the world’s first combination vaccine against shigellosis and typhoid. We shall conduct early-stage development, animal immunogenicity studies and regulatory preclinical toxicology studies for this combination vaccine. • Received regulatory approval to initiate Phase II clinical trials for Bivalent TCV vaccine. Updates on Innovation (1/2) PBC – Primary Biliary Cholangitis, MASH - Metabolic Dysfunction-Associated Steatohepatitis, ALS – Amyotrophic Lateral Sclerosis, ODD – Orphan Drug Designation, TCV – Typhoid Conjugate Vaccine 10
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Updates on Innovation (2/2) Specialty Initiatives • Entered into an exclusive licensing, supply and commercialization agreement with Zhuhai Beihai Biotech Co., Ltd for BEIZRAY, which is an Albumin Solubilized Docetaxel Injection, a 505(B)(2) product for the US market. BEIZRAY, is the first clinically validated, improved formulation of Docetaxel without synthetic excipients like Polysorbate-80 or Sulfobutyl Ether Cyclodextrin. BEIZRAY is indicated for the treatment of breast Cancer, non-small cell lung cancer, prostate cancer, gastric adenocarcinoma, and head and neck cancer. • Entered into an exclusive development, licensing, supply and commercialization agreement with Synthon BV of the Netherlands for a novel 505(B)(2) Oncology product. NDA for the product is likely to be filed in 2026. The product will provide additional benefits in the form of reduced pill burden, flexibility for dose adjustment and enhanced patient compliance. NDA – New Drug Application 11
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Other Updates 12 Acquisition of Amplitude Surgical x Zy ’ MedTech strategy • Forayed into Medtech space by entering into a share purchase agreement to acquire a majority stake in Amplitude Surgical SA, France. • The proposed acquisition shall act as a platform to x Zy ’ g b MedTech strategy and a natural extension for the Company having a proven track record in life sciences and wellness segments. • Amplitude Surgical holds leading position in the attractive orthopaedics market with global reach. • Holds extensive, high-quality portfolio compliant with the highest quality standards and regulations enhanced by ongoing product development pipeline and computer assisted program. • Dedicated team of R&D personnel working in close partnership with various stakeholders to develop technologically advanced products (e.g. Andy – Surgical Robot). • Zydus’ operational excellence and global footprint will enable potential synergies and efficiencies. • Revenue of € + and superior margin profile with continued initiatives to optimize business model and maximize value creation.
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Zydus at a Glance 1st Approved product for NASH in India - (Bilypsa® - Saroglitazar) Biosimilars (pipeline & launched) & 7 novel products (pipeline) 1. In FY25, assuming exchange rate of Rs. 84.57 per USD 2. As on 19th May,2025, exchange rate of Rs. 85.43 per USD 3. IQVIA MAT March 2025 TRx 13 8 R&D Centers For NCE, APIs, Generics, Vaccines Biosimilars and Wellness products 1st 24 Biosimilars in portfolio (incl. 3 ADCs), launched 14 products in India 1st OSD formulation for anemia associated with CKD – OxemiaTM (Desidustat) Biosimilars (pipeline & launched) & 7 novel products (pipeline) 8 >35% Revenues from India Geography (Formulations and wellness) in FY25 Biosimilars (pipeline & launched) & 7 novel products (pipeline) 1st 5th Largest generic Co. in US in terms of prescription3 Among Top 3 In >55% of product families marketed in US4 Brands among Top 300 in India5 >27 K Zydans globally incl. >1400 scientists (R&D) Global Revenues1 $10.7 bn Market Capitalization2 38 Mfg. sites having capabilities across dosage forms 4. IQVIA MAT March 2025 TRx 5. As per IQVIA MAT March 2025 ~$2.75 bn
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ESG Highlights 14 ESG Performance ... Climate Change @f 45% reduction in GHG Intensity by 2030 •• -- ~ (GHG Emissions) II t;@~ II Water Management Waste Management ■ ' ' ~ 2/3 of target achieved. @f Net Carbon Neutral by 2035 ~ ~40% of renewable energy in the total energy mix @f Net Water Neutral by 2028 ~ Creation of water recharge structures in progress ~ Achieved wastewater recycling ~ 43% (FY25) against 38% (FY24) @f Waste disposal via co-processing up 40% for India operations by 2026 ~ 36% waste disposal via co-processing FY25 Period : S&P Global ... . . . . . . . . . . SUSTAINALYTICS ecovadi zyd~ Dedicated To Life ESG Ratings 2022 2023 2024 Zydus Lifesciences Limited holds the 2nd position in the ESG Rating by S&P Global for 2024 (Indian peers) 38.3-High Risk 29.5-Medium Risk 3.1/5 •Lower the better
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Consolidated Financial Performance (reported) * Excludes Research related expenses 15 Rs. mn Q4 FY25 Q4 FY24 YoY gr. Q3 FY25 QoQ gr. FY25 FY24 YoY gr. Total Income from Ops. 65,279 55,338 18.0% 52,691 23.9% 2,32,415 1,95,474 18.9% Gross Contribution (GC) 48,308 39,223 23.2% 36,857 31.1% 1,69,035 1,33,192 26.9% Gross Margin % 74.0% 70.9% 69.9% 72.7% 68.1% Employee benefits expenses * 8,695 7,545 15.2% 8,516 2.1% 32,896 28,190 16.7% R&D expenses 4,799 3,516 36.5% 5,031 -4.6% 18,555 13,096 41.7% Other operating expenses 13,165 11,910 10.5% 11,260 16.9% 48,633 38,873 25.1% Net [gain]/loss on foreign currency transactions 394 -53 843.4% -1,826 121.6% -1,634 -810 -101.7% EBITDA 21,255 16,305 30.4% 13,876 53.2% 70,585 53,843 31.1% EBITDA Margin % 32.6% 29.5% 26.3% 30.4% 27.5% Other Income 806 1,564 -48.5% 575 40.2% 2,695 2,841 -5.1% Finance cost 766 346 121.4% 320 139.4% 1,659 812 104.3% Depreciation and amortization 2,379 2,053 15.9% 2,290 3.9% 9,158 7,641 19.9% PBT before exceptional items 18,916 15,470 22.3% 11,841 59.8% 62,463 48,231 29.5% Exceptional Expenses/ (Incomes) 2,196 - - 2,196 142 1446.5% Profit before Tax 16,720 15,470 8.1% 11,841 41.2% 60,267 48,089 25.3% Tax expenses 4,232 3,212 31.8% 1,795 135.8% 14,119 9,775 44.4% Share of profit from JVs -51 171 -129.8% 219 -123.3% 578 1,184 -51.2% Profit/(loss) from discontinued ops. - 32 -100.0% -3 100.0% - 230 Minority Interest 728 638 14.1% 27 2596.3% 1,471 1,133 29.8% Reported Net Profit 11,709 11,823 -1.0% 10,235 14.4% 45,255 38,595 17.3%
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Details of Exchange Rate Fluctuations 16 Rs. mn Q4 FY25 Q4 FY24 YoY gr. % FY25 FY24 YoY gr. % A. On operating transactions (above EBITDA line) 504 -57 983.3% -1,451 -864 -68.0% a. Included in COGS 110 -4 2815% 183 -54 441.5% b. Part of other operating expenses (shown separately) 394 -53 843% -1,634 -810 -101.7% c. Part of non-operating expenses B. On other income 191 - 191 - C. On foreign currency borrowings (part of finance cost) - - - 4 -100.0% Total Exchange Rate Fluctuations ('+' = loss, '-' = gain) 695 -57 1318.1% -1,260 -860 -46.6%
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Thank you Registered Office: Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, Sarkhej-Gandhinagar Highway, Ahmedabad – 382 481 Gujarat, India For any queries, please contact Arvind Bothra Arvind.Bothra@zyduslife.com +91-22-62711905 For more information, please visit: www.zyduslife.com www.linkedin.com/company/zyduslife