Cipla Ltd. — Earnings Release 2022

May 10, 2022

10[th] May, 2022

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• (1) BSE Ltd.

Listing Department Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 Scrip Code: 500087

(2) National Stock Exchange of India Ltd. Listing Department Exchange Plaza, 5[th] floor, Plot no. C/1, G Block, Bandra (East), Mumbai ‐ 400 051 Scrip Code: 500087

(3) SOCIETE DE LA BOURSE DE LUXEMBERG Societe Anonyme 35A Boulevard Joseph II, L‐1840 Luxembourg

Dear Sir/Madam,

Sub: Press Release

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the Press Release dated 10[th] May, 2022.

Kindly take the above information on record.

Thanking you,

Yours faithfully,

For Cipla Limited

RAJENDR Digitally signed by RAJENDRA A KUMAR KUMAR CHOPRA Date: 2022.05.10 CHOPRA 18:37:45 +05'30' Rajendra Chopra Company Secretary

Encl: As above

Prepared by: Chirag Hotchandani

Cipla Ltd.

Regd. Office ‐ Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai‐400 013, India

P +91 22 24826000 F +91 22 24826120 W www.cipla.com E‐mail contactus@cipla.com Corporate Identity Numbe r L24239MH1935PLC002380

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Cipla announces Q4 and FY22 results
Continued momentum across key markets drives 14% revenue growth;
Core profitability maintains strong trajectory
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Income from Operations EBITDA Margin Adj. EBITDA Margin
Q4: INR 5,260 Cr INR 763 Cr ~INR 960 Cr [1]
14% YoY 14.5% 18%+
FY: INR 21,763 Cr INR 4,578 Cr ~INR 4,775 Cr [1]
14% YoY 21.0% ~22%
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1. Excludes impact of one-time covid inventory and other charges of ~INR 200 crores in Q4

Mumbai, May 10, 2022: Cipla Limited (BSE: 500087, NSE: CIPLA) today announced its audited consolidated financial results for quarter ended March 31[st] , 2022.

Key highlights of the quarter

• One-India: Robust 21% growth across branded prescription, trade generics and consumer health over last year; 15% YoY growth adjusted for covid portfolio

• SAGA: Overall SAGA region grew by 8% on a YoY basis in USD terms; market beating growth in SA private continues

• US business : Reported $160Mn in revenue and 17% YoY growth; strong traction in respiratory assets as well as contribution from peptide assets

• R&D investments stands at INR 322 crores or 6.1 % of sales; Higher by 16% YoY driven by initiation of clinical trials on a respiratory asset

“I am pleased to see the continued momentum across our key markets despite adverse seasonality impacting overall business mix. Our One-India business continued the doubledigit trajectory during the quarter. We crossed the $1Bn milestone in our domestic branded prescription business driven by the sustained growth across our acute and chronic portfolio. Our established respiratory franchise and contribution from peptide assets has strengthened our US run rate to $160Mn. Adjusting for covid linked and other one-time charges, our core operating profitability continues to be strong underpinned by the strength of our business fundamentals. We continue to respond to challenging input cost environment with cost optimization and mix management while maintaining high serviceability. We are excited about the upcoming complex launches in H2FY23 which will further strengthen overall business and profitability trajectory.”

Umang Vohra MD and Global CEO, Cipla Ltd

For Queries Contact :

Corporate Communications Heena Kanal CorpComm@cipla.com

Investor Relations Naveen Bansal Investor.Relations@cipla.com

Cipla Ltd. Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013

ONE-INDIA

• ❖ One India business grew 21% YoY across branded prescription, trade generics and consumer health; 15% YoY growth adjusted for covid portfolio

• Branded prescription business: Sustained momentum across therapies in core portfolio; Healthy market shares and ranks across therapies

• Trade generic business: Strong demand for flagship brands and key therapeutic categories; Continued focus on customer engagement for healthy order flows

• Consumer health: Robust traction in anchor brands as well as transitioned brands; On sustainable EBITDA trajectory after break-even achieved in FY22

SAGA - SOUTH AFRICA, SUB-SAHARAN AFRICA AND GLOBAL ACCESS

• ❖ The SAGA region grew by 8% YoY basis in USD terms; private business grew 17% on a YoY basis in ZAR terms

• Market beating growth continues in South Africa private business; tender business muted in-line with expectations

• Continue to maintain leadership positions in key therapy areas

• Growth diversified across base and new product portfolios

Market Segment		Market	Market share	Cipla Growth	Market Growth
South Africaprescription		3	7.7%	12.0%	7.9%
South Africa OTC		3	7.1%	12.8%	8.1%
South Africa overall		3	7.5%	12.3%	8.0%
Source: IQVIA MAT March 2022

• ❖ SSA: Maintained scale over last year base driven by continued order flow across regions

• ❖ CGA: Performance driven by strong order flow for TLD

NORTH AMERICA

• ❖ US core formulation revenue at multi-quarter high of $160 Mn; 17% YoY growth

• ❖ Robust momentum in core formulation business; strong traction in respiratory assets as well as contribution from peptide assets

• ❖ Focus continues on limited competition complex launches

INTERNATIONAL MARKETS (EMERGING MARKETS & EUROPE) & API

❖ International Markets

• Scale supported by strong direct to market growth across geographies; offset emerging market forex volatility and muted B2B demand in Europe

• Steady double-digit growth in secondary terms during the quarter

❖ API

• Performance attributed to higher Q4FY21 base due to stock-up by customers and one-time profit share on an API supply

• Continued traction with global seedings & lock-ins

CONSOLIDATED PROFIT & LOSS STATEMENT

In INR Cr	Q4FY22	Q4FY21	Y-o-Y Growth	FY22	FY21	Y-o-Y Growth
Total Revenue from Operations	5,260	4,606	14.2%	21,763	19,160	13.6%
EBITDA	7631	796	-4.2%	4,5781	4,3033	6.4%
% of Income from Operations	14.5%	17.3%	_-279bps _	21.0%	22.5%	_-142bps _
PAT	3622	413	-12.4%	2,5172	2,405	4.7%
% of Income from Operations	6.9%	9.0%	_-209bps _	11.6%	12.6%	_-99bps _

1. Includes one-time covid inventory and other charges |2. Includes impact of impairments |3. Includes one-time income from a litigation settlement

BUSINESS-WISE SALES PERFORMANCE[$]

Q4FY22	Q4FY21	Y-o-Y Growth	FY22	FY21	Y-o-Y Growth
2,183	1,807	20.8%	9,828	7,736	27.0%
1,209	1,002	20.7%	4,431	4,091	8.3%
953	848	12.3%	3,677	3,448	6.6%
664	606	9.6%	2,633	2,301	14.4%
732	681	7.5%	2,874	2,840	1.2%
137	224	-38.7%	760	798	-4.7%
46	44	4.1%	193	246	-21.6%
5,260	4,606	14.2%	21,763	19,160	13.6%

$ Financials are rounded-off│# Includes South Africa, Sub-Saharan and Cipla Global Access business, excludes SA Animal Health│^ Excluding SA Animal Health| * International Markets include Emerging Markets and Europe| CHL – Cipla Health limited

BALANCE SHEET:

Key Balance Sheet Items (In INR Cr.)	Mar-22	Mar-21
Equity	21,117	18,586
Total Debt	824	1,756
Inventory	5,350	4,669
Cash and Cash Equivalents*	4,965	3,756
Trade Receivables	3,424	3,446
Net Tangible Assets	5,609	5,649
Goodwill & Intangibles	4,841	4,836

* Cash & cash equivalents includes current investments, fixed deposits, margin deposits and excluding unclaimed dividend balances

EARNINGS CONFERENCE CALL

The Company will host an Earnings conference call at 1900 hrs IST (2130 hrs SST/HKT, 1430 hrs BST, 0930 hrs US ET), during which the leadership team will discuss the financial performance and take questions. A transcript of the conference call will be available at www.cipla.com.

Date and Time	May 10, 2022at 1900 – 2000 hrs IST 2130 – 2230 hrs SST/HKT 1430 – 1530 hrs BST 0930 – 1030 hrs US ET
Dial-in Numbers
Universal Access	PrimaryAccess:(+91 22 6280 1562) │ (+91 22 7115 8387)
Diamondpass link	Clickhere to register
Toll Number	USA:+1 3233868721 UK:+44 2034785524 Hong Kong: +852 30186877 Singapore:+65 31575746

ABOUT CIPLA LTD

Established in 1935, Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets. Our strengths in the respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments are well-known. Our 46 manufacturing sites around the world produce 50+ dosage forms and 1,500+ products using cutting-edge technology platforms to cater to our 80+ markets. Cipla is ranked 3[rd] largest in pharma in India (IQVIA MAT Mar’22), 3[rd] largest in the pharma private market in South Africa (IQVIA MAT Mar’22), and is among the most dispensed generic players in the U.S. For over eight decades, making a difference to patients has inspired every aspect of Cipla’s work. Our paradigm-changing offer of a triple anti-retroviral therapy in HIV/AIDS at less than a dollar a day in Africa in 2001 is widely acknowledged as having contributed to bringing inclusiveness, accessibility and affordability to the centre of the HIV movement. A responsible corporate citizen, Cipla’s humanitarian approach to healthcare in pursuit of its purpose of ‘Caring for Life’ and deep-rooted community links wherever it is present make it a partner of choice to global health bodies, peers and all stakeholders. For more, please visit www.cipla.com, or click on Twitter, Facebook, LinkedIn.

Disclaimer : Except for the historical information contained herein, statements in this presentation and the subsequent discussions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, our ability to obtain regulatory approvals, technological changes, fluctuation in earnings, foreign exchange rates, our ability to manage international operations and exports, our exposure to market risks as well as other risks. In addition, the COVID-19 pandemic has created uncertainty and inability to predict the extent to which the pandemic will continue to adversely impact our business operations, financial performance, results of operations, financial position and the achievement of our strategic objectives. Cipla Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.