Cipla Ltd. — Investor Presentation 2019

Aug 7, 2019

Cipa

7[1h ] August, 2019

(1) BSE Limited (2) National Stock Exchange of India Limited Listing Department, Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 51h floor, Dalal Street, Plot no. C/1, G Block, Mumbai 400 001 Sandra Kurla Complex, Sandra (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: 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[7] 1h August, 2019.

This is for your information and record.

Thanking you,

==> picture [100 x 76] intentionally omitted <==

----- Start of picture text -----

Yours faithfully,
For Cipla Limited
----- End of picture text -----

Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Mandar Kurghode

Cipla Ltd.

Reg d. Offlce- Cipla Hause, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Pare!, Mumbai 400013, India. p •91 22 24626000 F •91 22 2lt626120 W www.cipla com E-M all contonctus@ciplo com Corporate Identity Number L2lt239MH193SPLC002360

==> picture [198 x 108] intentionally omitted <==

Investor Presentation Q1FY20

07-08-2019

Disclaimer

==> picture [123 x 67] intentionally omitted <==

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.

Investor Presentation: Q1FY20

07-08-2019

2

==> picture [123 x 67] intentionally omitted <==

Key milestones achieved in the quarter:

• India continues strong secondary performance across key therapies and outpacing the

• India & market in Respiratory and Cardiology

• 1 •

• South Africa Private South Africa private business continues to outperform the market; grew over 2 times the market at 7.3%[1]

• Approvals received for Ambrisentan and Pregabalin

• US Generics • Respiratory trials for generic Advair on track

• 2 •

• Ramp-up IP-enabled Cinacalcet continued to drive growth in the business; US Court of Appeals in the Third Circuit dismissed innovator’s motions in appeal for injunction

• Acquired worldwide rights (excluding Greater China) of ZEMDRI™ (IV Plazomicin) from Achaogen Inc. in a Chapter 11, U.S. Bankruptcy Code auction

3 New Investments

• Signed a definitive agreement to form a manufacturing JV and opened office in China; critical milestone in the journey to establish a respiratory franchise in the market

• • Executed transaction for development and commercialization of inhaled itraconazole in US with Pulmatrix

4

5

• Received EIR for Kurkumbh plant for the inspection conducted by the United States Food

• Operations and Drug Administration (USFDA) from 11th March 2019 to 20th March 2019

• • Despite significant global volatility and revenue deferrals for the quarter, profitability

• Profitability maintained

• As per IQVIA MAT Jun’19

Investor Presentation: Q1FY20

3

==> picture [123 x 67] intentionally omitted <==

Cipla furthers Anti-Microbial Resistance (AMR) stewardship with acquisition of key anti-infective ZEMDRI™(IV Plazomicin)

==> picture [142 x 94] intentionally omitted <==

ZEMDRI (IV Plazomicin)

• A novel aminoglycoside with a robust clinical data package and convenient once daily dosing

• Strong commercial synergies with IV Tramadol[1] in the Institutional Specialty space

• Acquired from Achaogen Inc. in a Chapter 11, U.S. Bankruptcy Code auction of Achaogen’s assets

• Transaction of Achaogen’s assets Details • Cipla has acquired worldwide rights of ZEMDRI™(excluding Greater China) with its allied assets and limited liabilities

• • Approved for patients with cUTI (complicated Urinary Tract Inflection),

• FDA Approved including pyelonephritis

FDA Approved including pyelonephritis United States and • Data on cUTI with concurrent bacteremia included in clinical section and Commercial activity against carbapenem resistant isolates included in microbiology section

• Regulatory submission focused on cUTI, including pyelonephritis, BSI (Blood Filed and European Union Steam Inflection) due to CRE (Carbapenem-resistant Enterobacteriaceae) under-review and in patients with limited treatment options

1. Avenue Therapeutics second tranche contingent on key label conditions

Investor Presentation: Q1FY20

4

==> picture [704 x 359] intentionally omitted <==

----- Start of picture text -----

Financial Performance – Q1FY20
Revenues INR 3,989 Cr EBITDA INR 905 Cr ~23% to sales
Q1 FY20 (Consolidated) Revenue [1] Break-up
Actuals
vs Q1 FY 19 Global API, Others,
(Rs Cr) 5% 4%
Total Revenue from Europe, 5%
3,989 1.3%
Operations
India, 34%
a) Domestic Sales 1,429 -8%
Emerging
Mkts, 7%
b) Int’l Sales 2,466 8%
c) Other Operating Income 95 2%
SAGA,
17%
EBITDA 905 25%
EBITDA % 22.7%
PAT 478 6%
North America, 28%
PAT % 12%
----- End of picture text -----

Financial Performance – Q1FY20

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

Investor Presentation: Q1FY20

5

==> picture [665 x 243] intentionally omitted <==

----- Start of picture text -----

Q1 Y-o-Y
Rs Cr
1800
1544
1600 -12%
1355
1400
• Conscious decision on realignment of distributors in the trade generics ; on
1200
expected lines and as per guidance in the last quarter
1000
800
•
Impact of dispatch deferrals to July of ~INR 60 crores, incremental over usual
600
trends
400
200
0
Q1 FY 19 Q1 FY 20
----- End of picture text -----

India (Rx + Gx)

==> picture [699 x 20] intentionally omitted <==

----- Start of picture text -----

Key Business Highlights [1]
----- End of picture text -----

• Cipla continued to perform well across key therapeutic areas:

• Strong prescription trends across therapies

• Continued to maintain leadership position (#1 IPM Rank) across Respiratory and Urology

• Chronic therapies continue to drive a significant share of growth and grew 14% vs 12% market growth

• Respiratory growth at 14% vs market growth of 9% and Cardiology grew by 18% vs market growth of 12%

• IQVIA Q1-FY20

Investor Presentation: Q1FY20

6

==> picture [123 x 67] intentionally omitted <==

North America: Significant growth driven by contribution from limited competition assets

==> picture [685 x 288] intentionally omitted <==

----- Start of picture text -----

Q1 Y-o-Y
Q1FY201 59% 47% $ Mn
Contribution from new
products launches in last 12 of Q1FY19 DTM of Q1FY19
months Revenues Revenues 161
61%
Key Business Highlights
100
•
Base business (normalized for Cinacalcet) grew year on year
•
Approvals received for Ambrisentan and Pregabalin
•
Gross margin expansion of over 10 percentage points led by contribution from
limited competition assets
• Pipeline Update: Q1 FY19 Q1 FY20
o Progressing well on trials for Respiratory products
o Of the total 253 ANDAs, 63 are under-approval and 21 are tentatively
approved
----- End of picture text -----

1 Only DTM revenues of new launches considered; Including contribution from Cinacalcet

Investor Presentation: Q1FY20

==> picture [123 x 67] intentionally omitted <==

SAGA[1] : South Africa, Sub-Saharan Africa and Cipla Global Access

==> picture [713 x 221] intentionally omitted <==

----- Start of picture text -----

Q1 Y-o-Y
$ Mn
SA Private Market
Secondary growth
38
2x
7.3% [2] 23 Tender business
of market re-basing
35
30
South Africa
Private Phasing of the
51 48
South Africa channel buying
Tender pattern
Others (SSA & Q1 FY19 Q1 FY20
CGA)
Key Business Highlights
----- End of picture text -----

South Africa:

• As per IQVIA (IMS) MAT Jun’19, South Africa business grew at more than two times the market at 7.3% in the private market

• Acquired portfolio of Mirren in the OTC space delivered over 10% growth

• Tender business to rebase in-line with new tender supplies in Q2

• Financial numbers are rounded off | 2. As per IQVIA MAT Jun’19

Investor Presentation: Q1FY20

8

EM, Europe and API	EM, Europe and API	EM, Europe and API
70 40 0 10 20 30 40 50 60 70 80 Q1 FY19 Q1 FY20 Emerging Markets $ Mn  Biosimilars franchise in the EM:Partnership with Alvotech on adalimumab biosimilar for select emerging markets  Quarter impacted by deferral of despatches to the first week of July and the continuing challenges in the middle eastern markets -43% Impacted by dispatch deferrals to July by ~$14.5mn One-time tender revenue ~$9mn		Europe $ Mn 20 29 0 5 10 15 20 25 30 35 Q1 FY19 Q1 FY20  44% year on year increase driven by strong performance in key products and contribution from new launches  Market share of FPSM in over 14% across Europe, as per IQVIA MAT Mar'19; UK share over 10% now 44%			API $ Mn 30 26 0 5 10 15 20 25 30 35 Q1 FY19 Q1 FY20  New product launch in ARV  Strong momentum continues in seedings and lock-ins -12%

Investor Presentation: Q1FY20

9

2

3

4

Key priorities for the upcoming quarters:

India

• Drive further growth in Chronic portfolio

1

o Launch key patient-focused initiatives in Respiratory o Improved execution on the acute portfolio by focusing on micro-market segments

==> picture [123 x 67] intentionally omitted <==

South Africa / SAGA

o Drive private market portfolio to deliver growth in the overall business offsetting impact of new tender supplies

o Evaluate portfolio choices in Global Access

US:

o Focus on limited competition launches in the later part of Q3 o Drive ramp-up in existing limited competition assets o Smooth transition of IV Plazomicin into Cipla portfolio

Quality and Compliance

o Respond to USFDA within the stipulated time for the observations at API plant in Virgonagar, Bangalore

o Continue to operate our facilities globally with the highest level of compliance and control

Investor Presentation: Q1FY20

10

==> picture [123 x 67] intentionally omitted <==

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

Investor Presentation: Q1FY20

11