Biocon Ltd. — Call Transcript 2022

Apr 29, 2022

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Biocon Limited 20th KM, Hosur Road Electronic City Bangalore 560 100, India T 91 80 2808 2808 F 91 80 2852 3423 CIN : L24234KA1978PLC003417

www.biocon.com

April 29, 2022

To The Secretary BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street,Mumbai – 400 001	To The Secretary National Stock Exchange of India Limited Corporate Communication Department Exchange Plaza, Bandra Kurla Complex Mumbai – 400 050
Scrip Code - 532523	Scrip Symbol- BIOCON

Dear Sir/Madam,

Subject: Presentation and Video Recording of Q4 FY22 Earnings Call

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), please find enclosed the presentation on Q4 and full year FY22 Earnings Call conducted today i.e. on 29th April, 2022. The same is also available on the website of the Company www.biocon.com.

Further, the Video Recording w.r.t. the Earnings Call is also available on the website of the Company at https://www.biocon.com/news-biocon/video-gallery-biocon/quarterly-statements-biocon/.

Kindly take the above said information on record.

Thanking You,

Yours faithfully,

For Biocon Limited

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_______ Mayank Verma

Company Secretary & Compliance Officer

Encl. as above

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Q4 and full year FY22 Earnings Call

April 29, 2022

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B I O C O N L I M I T E D
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Safe Harbor Statement

Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such statements. factors that could cause actual results to differ from our forward-looking Important materially expectations include, amongst others general economic and business conditions in India, our ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global biotechnology and pharmaceuticals industries, increasing competition in and the conditions of the Indian biotechnology and pharmaceuticals industries, changes in political conditions in India and changes in the foreign exchange control in India. Neither the nor its directors and of the affiliates have to or regulations company, any any obligation update otherwise revise statements circumstances after this date or to reflect the occurrence of any reflecting arising underlying events, even if the underlying assumptions do not come to fruition.

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Q4 and full year FY22 Earnings Call

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3

B I O C O N L I M I T E D

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Opening Remarks

Biocon reported revenues of $1.1 billion (₹8,397 Crores)

Transformative acquisition of Viatris’ biosimilars business for $3.335 billion

Biocon awarded by EcoVadis in the ‘Bronze’ category for its sustainability practices

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‘Pipeline is our lifeline’

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APIs
Niche
Potent Peptide molecules
APIs APIs for
hospitals
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G E N E R I C S

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Formulations
Device
Potent Oral
Injectables Topicals Dependent
Solids
Products
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B I O S I M I L A R S

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Today < 2 years 2-4 years >4 years
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• Pegfilgrastim - Bevacizumab (US)

• • Trastuzumab - Aspart (US) - Bevacizumab (EU) - Adalimumab (US) - Glargine 100 IU - rH-Insulin (US) - Aspart (EU) - Vaccines [1] (SILS deal
• • Adalimumab (EU) expected to close in H2
• • 2022) Etanercept (EU)

• Aflibercept[2] - Pertuzumab

• • Ustekinumab - Glargine 300 IU - Denosumab - Seven undisclosed programs

• Wave 2 biosimilars to address ~$20b

• market opportunity[3]

1 Subject to completion of the acquisition of Covishield Technologies Private Limited (CTPL) | 2 Expected to be included in BBL portfolio post the completion of BBL’s acquisition of Viatris’ biosimilar business (Viatris has global rights to the program partnered with Momenta) | 3 Based on 2021 originator and biosimilar reported sales B I O C O N L I M I T E D

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Board Update

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6

B I O C O N L I M I T E D

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Board Update

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Naina Lal Kidwai joins Biocon Limited Board as Additional Director

• A veteran banker and business leader

• Past President of FICCI

• An MBA from Harvard Business School

• Recipient of several awards including the Padma Shri for her contribution to trade & industry.

• Serves as an Additional Director and Senior Advisor for Rothschild India, and Senior Advisor Advent International, Non-Executive Director on boards of Holcim, Max Financial Services etc.

• Retired in 2015 as Chairman of HSBC India & Executive Director of HSBC Asia Pacific

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Financial Highlights Q4 and full year FY22

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B I O C O N L I M I T E D

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Financial Highlights: Q4FY22

Q 4 F Y 2 2

Q 4 F Y 2 1

Revenue

Revenue +21% ₹2,476Cr ₹2,048Cr Core EBITDA[*] +37% ₹815Cr ₹594Cr % margin 33% 32%

Biosimilars +48% | Generics +26% | Research Services +15% Dilution Gain in Bicara of ₹30Cr vs ₹160Cr in Q4FY21

Mark-to-market loss on investments of ₹6Cr

Forex Gain of ₹2Cr vs ₹7Cr in Q4FY21

EBITDA

EBITDA +3% ₹659Cr % margin 27% Profit Before Tax +9% ₹384Cr before Exceptional Items % margin 15%

₹641Cr

31%

₹353Cr 17%

Gross R&D spend at ₹232Cr R&D spend in P&L ₹191Cr

Exceptional Loss of ₹41Cr vs Gain of ₹13Cr in Q4FY21

Net Profit (Before exceptional items) % margin

₹262Cr ₹253Cr 11% 13%

Net Profit after exceptional items at ₹239Cr

*Core EBITDA defined as EBITDA before forex, dilution gain in Bicara, R&D, mark-to-market loss on investments and licensing income

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Financial Highlights: FY22

F Y 2 2

Revenue

Revenue +14% ₹8,397Cr Core EBITDA[*] +18% ₹2,669Cr

% margin 32%

F Y 2 1

₹7,398Cr

₹2,270Cr

31%

Biosimilars +24% | Research Services +19% | Generics -1% Dilution Gain in Bicara of ₹30Cr vs ₹160Cr in FY21

Mark-to-market loss on investments of ₹28Cr; Forex Gain of ₹58Cr vs loss of ₹9Cr in FY21

EBITDA

% margin

+14% ₹2,183Cr

26%

₹1,907Cr

26%

Gross R&D spend at ₹711Cr R&D spend in P&L ₹595Cr

Profit Before Tax +4% ₹1,094Cr before Exceptional Items % margin 13%

₹1,055Cr

14%

Exceptional Loss at ₹111Cr

Net Profit (Excluding Exceptional loss) % margin

₹722Cr ₹744Cr 9% 10%

Net Profit after exceptional items at ₹648Cr

*Core EBITDA defined as EBITDA before forex, dilution gain in Bicara, R&D, mark-to-market loss on investments and licensing income

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Generics Q4 and full year FY22

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B I O C O N L I M I T E D

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Generics: Q4FY22 and full year FY22

K E Y Q 4 H I G H L I G H T S

Robust sequential and YoY growth in Q4 driven by API sales ramp up, new launches in the US & normalization of operations

Q 4 F Y 2 2 Q 4 F Y 2 1 Revenue ₹717Cr ₹570Cr +26%

Profit Before Tax (PBT)

Posaconazole and Dorzolamide, launched in the US; 1[st] MoW market launch in Mexico; 1[st] approval in Singapore & in the UAE

₹116Cr ₹73Cr +59% 16% of revenue 13% of revenue

Successful site inspection by Health Canada at Bengaluru API manufacturing unit

On track to qualify & validate Vizag API facility in FY23; to commence new manufacturing expansion projects in Hyderabad & Bengaluru

Diversified renewable power consumption to solar & wind energy

F Y 2 2 F Y 2 1 Revenue ₹2,341Cr ₹2,363Cr

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Profit Before Tax (PBT)
₹261Cr ₹291Cr
11% of revenue 12% of revenue
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Biosimilars Q4 and full year FY22

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B I O C O N L I M I T E D

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Biosimilars: Q4 and full year FY22 Financials

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Q 4 F Y 2 2 Q 4 F Y 2 1 F Y 2 2 F Y 2 1
+24%
Revenue ₹982Cr ₹664Cr +48% ₹3,464Cr ₹2,800Cr
Core EBITDA [] ₹382Cr ₹215Cr +78% ₹1,320Cr ₹1,010Cr +30%
% margin 39% 33% 39% 36%
Profit Before Tax
₹144Cr ₹69Cr +109% ₹543Cr ₹365Cr +49%
before Exceptional Items
% margin 15% 10% 16% 13%
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*Core EBITDA defined as EBITDA before R&D, forex, licensing and mark-to-market loss on investments

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Biosimilars: Key Highlights

C O M M E R C I A L P E R F O R M A N C E

P I P E L I N E U P D AT E S

Interchangeable bGlargine to potentially end CY 2022 with mid to high teens market share

Unpartnered wave 2 programs, bDenosumab and bUstekinumab, entered clinical development

Oncology franchise continues strong performance bolstered by bBevacizumab launch in EU

BBL Wave 2 biosimilar portfolio to addresses ~$20b market opportunity[*]

US launches of biosimilar Aspart, Bevacizumab and Adalimumab key growth drivers of Viatris-led business

T R A N S A C T I O N U P D AT E S

BBL awarded a three-year contract for Insugen[®] in Malaysia, valued at $90m

Exercised the option to acquire Viatris’ rights in bAflibercept

In FY22, Branded Formulations India (BFI) business recorded 35% revenue growth YoY

SILS and Viatris deals on track for closing in H2 CY 2022

*Based on 2021 originator sales

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Novels Q4FY22

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Novels: Q4FY22

K E Y H I G H L I G H T S

Pivotal Phase III clinical study of Itolizumab for aGVHD* initiated in March 2022

Bicara[#] initiated dose expansion cohorts evaluating BCA101 in patients with head and neck, anal canal & cutaneous squamous cell carcinoma

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*Acute Graft-Versus-Host Disease

In Q4FY21, Biocon ceded control over the Board of Directors and Operations of Bicara Therapeutics Inc. to enable it to operate independently under a US based leadership team and raise funds to advance its development programs. As a result of this change, Bicara was classified as an Associate from a Subsidiary under IND-AS.

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Research Services Q4 and full year FY22

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B I O C O N L I M I T E D

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Research Services: Q4FY22 and full year FY22

K E Y Q 4 H I G H L I G H T S

Q 4 F Y 2 2 Q 4 F Y 2 1 Revenue ₹758Cr ₹659Cr +15%

Performance across all divisions in Q4

Profit Before Tax (PBT)

₹179Cr ₹158Cr +14%

Particularly strong quarter for Development Services on account of catching up on earlier delayed projects

24% of revenue 24% of revenue

Completed Phase III of Hyderabad research facility expansion

F Y 2 2 F Y 2 1 Revenue ₹2,604Cr ₹2,184Cr +19% Profit Before Tax (PBT) ₹515Cr ₹434Cr +19% 20% of revenue 20% of revenue

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Concluding Remarks

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B I O C O N L I M I T E D

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Concluding Remarks

Final Dividend of 10% of face value of each share proposed for FY22

Viatris and Serum deals to drive FY23 Growth

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Q&A

22

B I O C O N L I M I T E D