Lupin Ltd.

About Lupin

Herbaceous perennial plant from South & western North America , Mediterranean region and Africa.

Fixes nitrogen from the atmosphere into ammonia via a rhizobium root nodule.

Lupin beans are edible and are also used as fodder for animals.

Vision

Mission• “Our aspiration is to become a multi-billion dollar

transnational company and be counted amongst the top generic pharmaceutical companies in the world. Going forward, we have to consistently set ourselves standards and benchmarks that will be world-class but uniquely Lupin.”

Dr Desh Bandhu Gupta Chairman

Values

History & Milestones 1980 Lupin commissioned a formulations plant and an R&D

center at Aurangabad. 1981 Ethambutol production was started. 1986 Lupin was started. 1988 The Lupin Human Welfare and Research Foundation

(LHWRF) was founded.(a CSR initiative). 1993-94 Lupin Laboratories Ltd and Lupin Chemicals Ltd raised

money through IPOs. 2000 The R&D Centre at Pune began operations. 2002 Exports to the Advanced Markets crossed Rs.1000 mn.

Rising trend of exports as a % of total revenue – up 33% year-over-year.

Merger & Acquisitions

2007

•Japan - Kyowa Pharmaceutical Industry Company Ltd. ( Generic Company)

2008

•Australia - Generic Health Pty Ltd.

2008

• Germany - Hormosan Pharma (Generic Company)

2008

•South Africa - Pharma Dynamics

2009

•Philippines - Multicare Pharmaceuticals Inc.

2010

•US – Antara and Aller-Naze

Corporate Social Obligation\

The Lupin Human Welfare & Research Foundation (LHWRF) Transforming lives of over 2 million people. Focus on uplifting people and families below the poverty line. Women and Child development. Better Public Health. Education and Employability. International Symposium on Diabetes.

Business Segments

Business Segments FORMULATIONS:• End products • Tablet, capsules , injectibles or syrups.

APIs and intermediates :• Active Pharmaceutical Ingredients used in the

manufacturing of drugs.• Intermediates – used for synthesis of APIs.

Business Break-Up

Formu-la-

tions

85%

API15%

Business Mix

Out-side India63%

India27%

Geography Mix

Formulations Commands a business of over Rs. 11,412 mn spread across the globe

2005-06 2006-07 2007-08 2008-09 2009-100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

52%

61%70%

81% 85%

% contribution (gross sales)

Advanced Market61%

India32%

Emerging Market7%

Formulation sales break-up (09-10)

Formulations-India

FY 08-09 FY 09-1010000

10500

11000

11500

12000

12500

13000

13500

11011

13008

Sales (in Rs. million)• Fastest growing pharma

company.• Aggressive focus on brand

building.• New Products constitute over

45% of sales.

• Divisions in India : Lupin Pharma, Lupin Respira, Endeavour, Maxter Pinnacle, Lupin

Diabetes care, MindVision, Lupinova.• 42 new products launched this year.

Formulations-Advance Markets

Generics - US :• 5th largest Generic player.• Generics business grew by 45%

Generics – Europe• Cefpodoxime Proxetil tabs

France – 72% market share• Ceftiofur – Ranked #1 generic

2008-09 2009-100

50100150200250300350 273

348Net Sales ($ million)

Branded :• Suprax continues robust growth.• Branded portfolio forms 37% of US Turnover

Formulations-Emerging MarketsJapan

Australia

South Africa

API & Intermediates

2005-06 2006-07 2007-08 2008-09 2009-100%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

48%

39%

30%

19%

15%

% contribution (gross sales) • Global leadership in chosen therapies Cephs Ceph-intermediates Anti-TB range Lisinopril

• India’s most profitable API entity – ROCE 36%

Financial Analysis

Heads Of Income

Net sales95.81%

Other operating income3.78%

Other income0.41%2006

Net sales98%

Other operating income2%

Other income0.12%

2010

Heads Of ExpensesRaw material

60%

Power and fuel cost

5%

Employee cost11%

Other manu-facturing expenses

4%

Selling and admin ex-

penses17%

Miscellaneous expenses3%

2006

Raw material56%

Power and fuel cost

5%

Employee cost14%

Other manu-facturing expenses

4%

Selling and admin ex-

penses18%

Miscellaneous expenses2%

2010

Sources Of Funds

Equity share capital

2%

Re-serves

and surplus

64%

Minor-ity in-

terests1%

Loan funds 29%

Deferred tax4%

Equity share capital2.44%

Re-serves

and sur-plus

35.44%

Minor-ity in-terest0.10%

Loan funds

56.21%

Deferred tax liabilities (net)

5.81%

2006

2010

Application Of Funds

Fixed assets50%

Goodwill on consolidation

8%

In-vest-

ments1%

De-ferred

tax assets (net)1%

Net current assets41%

Fixed assets

40.83%

In-vest-

ments0.17%

De-ferred

tax assets (net)

0.10%

Net current assets

58.90%

2006

2010

Net Sales

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

1,652.93

1,985.79

2,575.39

2,954.70

3,690.09

Net sales (In Rs. Cr. )

Operating Profit =operating revenue-operating expenses

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

100

200

300

400

500

600

700

800

900

303.37333.56

541.31574.12

841.11

Operating profit (In Rs. Cr.)

Profit After Tax=Operating Income x (1-Tax Rate)

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

100

200

300

400

500

600

700

179

279.979999999999

442.8416.96

647.849999999998

Profit after tax (In Rs. Cr.)

Net Profit=Total Revenue -Total Expenses

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

100

200

300

400

500

600

700

182.72

302.06

443.38416.97

648.929999999999

Net profit (In Rs. Cr.)

Net profit (In Rs. Cr.)

Ratios

Current Assets Current Liabilities

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

0.2

0.4

0.6

0.8

1

1.2

1.41.14999999999

9991.22

0.970000000000001

0.830000000000001

0.960000000000001

Current ratio

Current Ratio =

Debt Equity

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

0.2

0.4

0.6

0.8

1

1.2

1.4

1.61.42

0.970000000000001

0.730000000000001

0.690000000000001

0.36

Column1

Debt Equity Ratio =

Profit After Tax Net Worth

100Return On Net Worth (%) =

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

5

10

15

20

25

30

35

40

28.37

34 33.6630.31

25.64

Return on net worth

Return on net worth

v Net Profit TurnoverNet Profit Margin (%) = 100

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

2

4

6

8

10

12

14

16

18

20

10.98

14.8916.3

14.09

17.52

Column1

Earnings For Equity Share Holder Total No. Of Equity Shares

Earning Per Share =

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

10

20

30

40

50

60

70

80

45.5237.6

54.0250.35

72.96

Earning per share

Dividend Total No. Of ShareDividend Per Share =

Jan-06 Jan-07 Jan-08 Jan-09 Jan-100

2

4

6

8

10

12

14

16

6.55

10

12.513.5

Column1

Core Competitors Sun Pharma Cipla Dr Reddys Labs Ranbaxy Labs GlaxoSmithKline Cadila Health Piramal Health Divis Labs Glenmark

Competitors’ Market Share

Sun Pharm

aCipla

Dr Red

dys La

bs

Ranbax

y Lab

s

GlaxoSm

ithKlin

eLu

pin

Cadila

Health

Piramal

Health

Divis L

abs

Glenmark

0

5

10

15

20

25

COMPANIES % MARKET CAPITALCOMPANIES % SALES TURNOVER

Competitors’ Profit Share

Sun Pharma

Cipla

Dr Reddys L

abs

Ranbaxy La

bs

GlaxoSmith

Kline

Lupin

Cadila Health

Piramal H

ealth

Divis Labs

Glenmark0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

% NET PROFIT

% NET PROFIT

Strategies Replicating our Branded business model in new markets

Developing our specialty business, bio-similars. Focusing the US business on more specialised products. Strategic investments in APIs will support growth across

all businesses.

Targeting doubling of sales growth every 4 years while improving operating margin

Thank You