Cipla Ltd. — Interim / Quarterly Report 2020

May 15, 2020

==> picture [67 x 25] intentionally omitted <==

15[th] May, 2020

(1) BSE Limited (2) National Stock Exchange of India Limited Listing Department, Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5[th] floor, Dalal Street, Plot no. C/1, G Block, Mumbai 400 001 Bandra Kurla Complex, Bandra (East), Mumbai - 400 051

Scrip Code: 500087 Scrip Code: CIPLA EQ

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

Sub: Press Release

Dear Sir/ Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed Press Release dated 15[th] May, 2020.

This is for your information and record.

Thanking you,

Yours faithfully,

For Cipla Limited

Digitally signed by RAJENDRA CHOPRA DN: c=IN, o=Personal, 2.5.4.20=4987ad48c3965cfde78c8ea69e6f RAJENDR 40ac91535876f12ba1fa5ba45cc5cc8db6c b, postalCode=122001, st=HARYANA, serialNumber=0be85c0408d0e3afd66366 9f5314248a72fdcdf34d01d48d472d7cf92 A CHOPRA 62696f6, cn=RAJENDRA CHOPRA Date: 2020.05.15 19:03:40 +05'30' Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Mandar Kurghode

Cipla Ltd.

Regd. Office - Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013, India. Phone : +91 2224826000 Fax : +9122 24826120 Website: www.cipla.com Email : contactus@cipla.com Corporate Identity Number: L24239MH1935PLC002380

Cipla announces Q4 and FY20 results

==> picture [132 x 72] intentionally omitted <==

Demonstrating sustained growth momentum across core businesses and unlocking of respiratory pipeline

	Income from Operations EBITDA Margin % PAT INR 4,376 Cr INR 246 Cr ~15%1 Q4:
	INR 17,132 Cr INR 1,547 Cr ~19% FY:

1. Impacted by ~200bps due to Covid related cut-off

Mumbai, May 15, 2020: Cipla Limited (BSE: 500087, NSE: CIPLA) today announced its audited consolidated financial results for quarter ended March 31[st] , 2020.

Key highlights of the quarter

• India: The Rx business grew by 12% on a y-o-y basis recording a 3[rd] consecutive quarter of market beating growth. The trade Gx business revives strongly recording 2[nd] consecutive growth quarter

• South Africa: Overall business continued the strong growth momentum to deliver growth of 10% on a y-o-y basis in local currency; private business continues to outpace the market significantly

• US business : Reported USD 118mn post normalisation of IP-enabled opportunity

• Quality Focus: Received EIR for API manufacturing facility at Bangalore from USFDA

• R&D investments stand at INR 311 crores or 7.1 % of sales

• Focused execution of business continuity planning for manufacturing, supply chain, R&D and marketing with emphasis on cost optimization and cash management

As the world endures the unprecedented COVID-19 pandemic, our foremost focus has been on safeguarding our employees and ensuring wellbeing of our patients. In support of the Government’s efforts to combat the crisis, the company set-up an INR 25 crore ‘Caring for Life’ COVID-19 dedicated fund to support the healthcare ecosystem and communities. As a pharmaceutical company, it our constant endeavour to ensure that patients have access to life-saving drugs, we recently partnered with Gilead Sciences, Inc. for the manufacturing and distribution of the investigational medicine Remdesivir to treat COVID-19 patients upon approval. Our key markets continued to demonstrate strong growth momentum in the quarter. The USFDA approval for generic Albuterol MDI and the successful completion of the Phase 3 clinical study of generic Advair Diskus® has strengthened our respiratory franchise in the US market; furthering our aspirations of becoming the lung leaders of the world. As a ‘new world’ dawns post the pandemic, Cipla continues to uphold its pioneering legacy by reimagining healthcare and reinventing the ecosystem; all keeping the patient care at the core.

Umang Vohra MD and Global CEO, Cipla Ltd

For Queries Contact :

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

Corporate Communications Heena Kanal CorpComm@cipla.com

Investor Relations Naveen Bansal Investor.Relations@cipla.com

INDIA

• ➢ India Rx business delivered 3[rd] consecutive quarter of market beating double-digit growth

• ➢ Trade Gx business grew by 15%[1] reviving strongly since Q2 highlighting the fundamental strength of the business

• ➢ Cipla continued to perform well across key therapeutic areas.

• Growth in MAT Mar’20 was driven by Respiratory, Cardiac, Gastro and Pain

• Chronic therapies ranked #2 driving a significant share of our growth and grew by 12% as per IQVIA MAT Mar’20 broadly in line with market growth

• Cipla continued to maintain leadership position across Respiratory and Urology while maintaining 3[rd] position in Anti-infectives and 4[th] in Cardiology

• ➢ Continued growth investments: Acquired 4 umbrella brands in the nutraceutical segment from Wanbury Limited to further strengthen four-decade long presence in the women’s health category

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

• ➢ Overall South Africa business continued the strong growth momentum to deliver growth of 10% on a y-o-y basis in local currency for the quarter

• ➢ Cipla continues to rank as the 3[rd] largest pharmaceutical player within the South African private market with a market share of 6.9%

• ➢ Cipla emerged largest OTC player in the addressable market with a share of 7.1% and 3rd largest ARV player in the private market with a share of 15%

• ➢ The Sub-Saharan Africa business were impacted by receivables related challenges; CGA business remained flat for the quarter

NORTH AMERICA

Pipeline Update:

• ➢ Unlocking of the Respiratory franchise in the US with the launch of generic Albuterol; Only approved generic for Proventil®

• ➢ Achieved first-pass success in the phase 3 trials for generic Advair®

• ➢ Filing of another complex inhaler

• ➢ Recently launched Esomeprazole for oral suspension with First to file on the 10 mg strength

US Specialty:

• ➢ CNS Out-licensing: Sub-licensed NCE CNS asset to a partner for further development and actively exploring partnerships for the other CNS asset

• ➢ Working with USFDA on IV Tramadol NDA submitted in Dec via Avenue Therapeutics

EUROPE, EMERGING MARKETS & API Europe & Emerging Markets

• ➢ The European operations reported robust 14% growth on a full year basis led by strong performance in key DTM markets. Cipla’s overall FPSM pMDI market share is 20% in Europe

• ➢ The emerging market business was flat on Covid-19 related logistical challenges with recovery in Q1FY21

• ➢ The API business grew by 38% for the quarter and 5% for the full year in USD terms driven by continued momentum in global seedings & lock-ins

• Adjusted for CHL product transfer in base

CONSOLIDATED PROFIT & LOSS STATEMENT

In INR Cr	Q4FY20	Q4FY19	Y-o-Y Growth	FY20	FY19	Y-o-Y Growth
Total Revenue from Operations	4,376	4,404	-1%	17,132	16,362	5%
EBITDA	652	972	-33%	3,230	3,171	2%
% of Income from Operations	15%1	22%		19%	19.4%
PAT	246	367	-33%	1,547	1,528	1%
% of Income from Operations	5.6%	8.3%		9.0%	9.3%

1. Impacted by ~200bps due to Covid related cut-off

BUSINESS-WISE SALES PERFORMANCE[$]

Business (In INR Cr.) India(Rx + Gx + CHL) North America SAGA# South Africa^ Emerging Markets Europe API Others Total*	Q4FY20	Q4FY19	Y-o-Y Growth	FY20	FY19 Y-o-Y Growth	FY19 Y-o-Y Growth
	1,730	1,542	12%	6,741	6,420	5%
	856	1,143	-25%	3,874	3,421	13%
	825	822	0%	3,087	3,190	-3%
	532	513	4%	2,203	2,156	2%
	415	406	2%	1,468	1,740	-16%
	232	236	-1%	813	702	16%
	247	174	42%	752	701	7%
	**71 **	**81 **	-12%	397	189	110%
	4,376	4,404	-1%	17,132	16,362	5%

$ Financials are rounded-off│# Includes South Africa, Sub-Saharan and Cipla Global Access business, excludes SA Animal Health│

^ Excluding SA Animal Health│* Includes CNV business and other elements of Revenue│ CHL – Cipla Health limited

BALANCE SHEET:

Key Balance Sheet Items (In INR Cr.)	Mar-20	Mar-19
Equity	16,057	15,344
Total Debt	2,816	4,316
Inventory	4,378	3,965
Cash and Cash Equivalents*	2,009	2,735
Trade Receivables	3,891	4,151
Net Tangible Assets	5,673	5,507
Goodwill & Intangibles	4,834	4,777

* Includes current investment and excluding unclaimed dividend balances

EARNINGS CONFERENCE CALL

The Company will host an Earnings conference call at 1930 hrs IST (2200 hrs SST/HKT, 1500 hrs BST, 1000 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.

Earnings Conference Call DialMay 15, 2020 at in Information Date and Time 1930 – 2030 hrs IST 2200 – 2300 hrs SST/HKT 1500 – 1600 hrs BST 1000 – 1100 hrs US ET Dial-in Numbers Universal Access Primary Access: (+91 22 6280 1214)│(+91 22 7115 8115) Local Access Available all over India: (+91 7045671221) Toll-free Number USA: 1 866 746 2133 UK: 0 808 101 1573 Hong Kong: 800 964 448 Singapore: 800 101 2045

Playback of Earnings Conference Call audio:

Playback of the earnings call will be available after the end of the call on the following number:

	Phone number	Access code	Replay Dates
Local Toll	India (+91 22 71945757) India (+91 22 66635757)	44899#	May 15, 2020, to May 21, 2020

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 3rd largest in pharma in India (IQVIA MAT Mar’20), 3rd largest in the pharma private market in South Africa (IQVIA MAT Mar’20), 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 including the impact of Covid-19 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.