Cipla Ltd. — Investor Presentation 2019

Nov 6, 2019

6th November, 2019

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

Scrip Code: 500087

Scrip Code: CIPLA

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

Sub: Investor Presentation

Dear Sir/ Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed investor presentation dated 6th November, 2019.

This is for your information and record.

Thanking you,

Yours faithfully, For Cipla Limited

Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Mandar Kurghode

Cipla Ltd.

Investor Presentation Q2FY20

06-11-2019

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. Cipla Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

Information relating to any medical products or medical devices contained herein is provided by Cipla for general information purposes only. Information on any of the medical products or medical devices may vary from country-to-country. A reference to a medical product or a medical device does not imply that such medical product or medical device is available in your country. The commercial availability of the medical products or medical devices listed herein in your country is dependent on the validity and status of existing patents and/or marketing authorizations related to each. An independent enquiry regarding the availability of each medical products or medical device should be made for each individual country.

The product information contained herein is not intended to provide complete medical information, and is not intended to be used as an alternative to consulting with qualified doctors or health care professionals.

Nothing contained herein should be construed as giving of advice or the making of a recommendation and it should not be relied on as the basis for any decision or action. It is important to only rely on the advice of a health care professional.

Key highlights:

	1	Continued growthacross key markets	Overall10%(Q2 YoY Growth)	India Rx13%(Q2 YoY Growth)	India Gx61%(QoQGrowth)	South Africa13%(Private MarketQ2 YoY Growth; ZAR )
	2	Strong EBITDA margintrajectory		~21%(Q2 EBITDA)	21%Q2 EBITDA YoY Growth
3		Momentum continues inthe US business	US$135mnQ2 Revenues	25%Q2 YoY Growth	Launched Pregabalin	Retained share in CinacalcetandDaptomycin
	4	Pipeline Progress	Q2 R&D at INR 295cr or ~7% to sales; Respiratory trials well on-trackPatient randomization completed for Advair; Albuterol as a launch in the first half ofFY21
	5	Quality and Compliance	Response submitted for the inspection at Goa

Financial Performance – Q2FY20

1 Others: Includes CNV business, Vet and others; SAGA includes South Africa, Sub-Saharan Africa and Cipla Global Access; Percentages have been rounded-off

Continued focus on maintaining balance sheet health with strong cash flow generation

• Loan repayment of US$110mn made during the quarter*, a year ahead of schedule*
• Reduction in Net Debt/Equity despite continued growth and strategic investments

India (Rx + Gx) : Strong recovery in the generics business and momentum across key therapies in the branded business

Key Business Highlights1

• Strong recovery in the trade generics business with growth of 61% on a sequential basis
• The branded business grew 13% on a YoY basis driven by performance across both chronic and acute therapies.
• Seasonal triggers helped acute business drive over 15% year on year growth in primary sales

Therapy	MarketRank	MarketShare	CiplaGrowth	MarketGrowth
Overall Chronic	2	7.8%	15%	12%
Respiratory Inhalation	1	67.9%	16%	15%
Urology	1	14.7%	15%	14%
Cardiology	4	5.7%	17%	12%

North America: Momentum continues behind new launches and retained share on key assets

Key Business Highlights

• Continue to retain share in Cinacalcet despite multiple competitors launching the product; contribution in value terms substantially normalized
• Launch of Pregabalin and Daptomycin
• During Q2, the gross margin expanded by ~500bps vs the same quarter last year. On a YTD basis, the gross margin expansion is ~900bps

• Pipeline Update:

• o Progressing well on trials for Respiratory products
• o Patient randomization completed for Advair; Albuterol as a launch in the first half FY21
• US Specialty:
  • o Targeting submission of IV Tramadol NDA later in the year via Avenue Therapeutics.
  • o Resumed supplies of Plazomicin in the market

2 PEPFAR approved ANDAs can be commercialised in US

SAGA1 : South Africa, Sub-Saharan Africa and Cipla Global Access

Key Business Highlights

South Africa:

• Overall South Africa business grew strongly at 12% on a year on year basis in local currency; private market business recovered strongly from Q1 to drive ~13% year on year growth
• Private market continued the momentum growing over 3 times the market at 7% as per IQVIA MAT Sept'19
• With Mirren portfolio growing strongly, Cipla is now the 3rd largest player in the OTC market, capturing a market share of 6.8%

1. Financial numbers are rounded off

EM, Europe and API

Strengthening portfolio offering in key markets:

• In Sri Lanka, entered into a strategic partnership with Novartis for marketing and distribution of Ultibro Breezhaler
• Signed a strategic partnership with Novartis, effective Oct 1, to market their Respiratory portfolio in Australia

• Growth driven by performance in key products
• Overall FPSM UK market share at 12% as per ePACT May-July data

• Key customers and focused therapies of Oncology and Respiratory continue to drive business
• Momentum continues in seedings and lock-ins

Key priorities for the upcoming quarters:

India

1

2

3

4

• o Leverage on the momentum and continue to drive performance across both branded and generics
• o Launch Berok 2.0: Second version of Cipla's flagship patient-focused initiatives in Respiratory

South Africa

• o Continue growth momentum in the private market portfolio to deliver growth in the overall business
• o Continue to be a dominant player in the OTC space and drive further growth in the Mirren portfolio

US:

• o Focus on limited competition launches in Q4; drive ramp-up in existing assets
• o Continue to track Respiratory filings closely
• o IV Tramadol NDA filing later this year; continue supply of IV Plazomicin in the market

Quality and Compliance

• o Work with US FDA to address the observations in Goa
• o Continue to operate our facilities globally with the highest level of compliance and control

Thank you

Registered Office :

Cipla Limited, Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013

For any queries, please contact Naveen Bansal Investor.Relations@cipla.com

For more information please visit www.cipla.com