Cipla Ltd. — Investor Presentation 2020

Aug 7, 2020

7[th] August, 2020

• [Grab your reader’s attention with a great quote from the

document or use this space to emphasize a key point. To place (1) BSE Limited (2) National Stock Exchange of India Limited this text box anywhere on the page, just drag it.] Listing Department, Listing Department [Cite your source here.] 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: 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[th] August, 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=4987ad48c3965cfde78c8ea69 RAJENDR e6f40ac91535876f12ba1fa5ba45cc5cc8db6cb, postalCode=122001, st=HARYANA, serialNumber=0be85c0408d0e3afd66 A CHOPRA 3669f5314248a72fdcdf34d01d48d472d7cf9262696f6, cn=RAJENDRA

CHOPRA Date: 2020.08.07 18:22:13 +05'30'

Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Pratiksha Mangaonkar

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Investor Presentation Q1FY21

07-08-2020

Disclaimer

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Except for the historical information contained herein, statements in this presentation and the subsequent discussions may constitute "forwardlooking statements". These forward-looking statements involve a number of risks, uncertainties including 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.

The investor presentation is not intended to endorse, advertise, promote or recommend the use of any products listed in it which are for representation purpose only, some of which are reference listed drugs of which the Company has approved, under approval or under development generic equivalents. The prefixes “g” and “generic” used interchangeably indicate the generic versions of the named brand drugs.

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: Q1FY21

07-08-2020

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Cipla’s efforts in combatting Covid-19

Delivering on our promise of ‘Caring for life’

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Patients		Physicians		Employees
▪ Comprehensive presence across the Covid care continuum ▪ Accelerated launch of the largest Covid-19 portfolio in the country ▪ Cipremi® (Remdesivir) ▪ Actemra® (Toclizumab) ▪ Ciplenza® (Favipiravir) ▪ Ciphands® (Hand Sanitizer) ▪ 24/7 support & Toll-Free Helpline for availability of essential medicines ▪ Supported onboarding of 10K+ doctors on multipletelehealth platforms to facilitate on-demand consultations ▪ Engaged 75k+ doctors through Webinars, e-adboards and e- CMEs (Continuing medical education) ▪ Support to Healthcare professionals (HCPs) and paramedical staff withCovid healthcare managementtraining program ▪ Distributed 1.2 lac PPE Kits, 30 lac+ masks, 20 lac+ sanitizers, 11 lac gloves ▪ Embracing changed working norms withwork-life assistance program ▪ Multiple programsinitiated to ensure employeesafety and support to their families ▪ Medical emergency coordination committee ▪ Financial assistance policy

Supporting the Indian government’s efforts to effectively combat the pandemic with INR 25 Cr ‘Caring For Life’ Fund

Investor Presentation: Q1FY21

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Strong Start to FY21!

Business re-imagination, resilient operations and lower costs drive Q1 performance

Overall 9% Revenues (YoY Growth)

1 Strong EBITDA margin expansion led by cost control 24% ~145bps 16% ~923bps 61% YoY expansion YoY QoQ expansion QoQ Q1FY21

Strong growth across branded franchise 2 of India & SA India Rx South Africa Pvt One 16% 4[th] consecutive 24% India quarter of market YoY beating growth YoY in ZAR Terms

US business continues to scale-up with 3 ramp-up of new launches

US$135mn 14% Strong Albuterol QoQ ramp-up Q1FY21 Revenues

4

Strong execution on cost optimization and ZERO Net-debt

Other 27% 17% Net Debt (-) INR 50 Cr position & strong Zero net debt Expenses QoQ YoY liquidity

Investor Presentation: Q1FY21

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Significant efforts and focus across the organization to enable business operations

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1 Business Re-imagination

2 Significantly lower costs

Accelerated digital adoption to connect healthcare ecosystem and identifying value generating near term tailwinds

Strong optimization by identifying avenues for reduction of cost drivers

Operational Collaborative 3 4 Resilience Stakeholder Partnerships

Cash & Liquidity 5 Management

Various initiatives to help our Strong back-end & front-end vendors and channel operations management to partners maintain liquidity ensure serviceability and and sustain in a challenging patient access environment

Significant net cash addition through focus on cash conservation and liquidity management

Investor Presentation: Q1FY21

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Financial Performance – Q1FY21
Revenues INR 4,346 Cr 9% EBITDA INR 1,049 Cr │ 24% 16% [YoY]
Q1 FY21 (Consolidated) Revenue [1] Break-up
Actuals Global API, Others,
vs Q1 FY 20
(Rs Cr) 4% 2%
Europe, 6%
Total Revenue from
4,346 9%
Operations
India, 37%
Emerging
EBITDA 1,049 16% Mkts, 11%
EBITDA % of revenue 24% 145 bps
PAT 578 21%
SAGA,
18%
PAT % of revenue 13% 131 bps
INR 200 Cr 36% Focused
R&D R&D North America, 23%
4.6% to sales QoQ investments
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Financial Performance – Q1FY21

1 India includes Rx + Gx+ CHL; Others: Includes CNV business ; SAGA includes South Africa, Sub-Saharan Africa and Cipla Global Access; Figures have been rounded-off

Investor Presentation: Q1FY21

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Q1 Y-o-Y
Rs Cr
1,608
16%
1,388
Q1 FY 20 Q1 FY 21
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India (Rx + Gx+ CHL[1] ) : Resilient execution driving growth across businesses in India

Key Business Highlights[2]

• The Rx business grew 9% YoY led by strong traction in chronic therapies despite lock down challenges; continued servicing of patients with Covid portfolio

• Outperformed the market in Respiratory, Inhalation and Urology while Cardiology reported strong double digit growth

India Rx

• Performed better than the market in CNS, Ophthalmology and Dermatology

4[th ] consecutive quarter of market beating growth

• Key acute therapies witnessed a sharp recovery in June’20 over May’20; trends to be tracked closely for Q2

• Trade generics business grew 46% YoY on a base adjusted for CHL transfers

• CHL: Growth driven by strong portfolio expansion; Ciphands generated INR 30+ crore revenue for the quarter

	Therapy Overall Chronic	Market rank 2	Market share 7.4%	Cipla growth2 7%	Market growth2 5%
	Respiratory Inhalation	1 1	25.7% 68.9%	5% 6%	-2% 4%
	Urology	1	16.3%	5%	-6%
	Cardiology	4	5.5%	10%	12%

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9% 46%
INR 100 Cr
Q1 YoY Q1 YoY
Q1FY21
(Adjusted CHL product
transfer in base)
India Rx India Gx CHL
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1. CHL – Cipla Health Limited │2.Market data as per IQVIA April-June’20

Investor Presentation: Q1FY21

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

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Q1 Y-o-Y
$ Mn
South Africa Market
17% Q1 YoY
23 28
ZAR Terms
30 25
South Africa Private South Africa Tender
South Africa
Private 24% Q1 YoY 6% Q1 YoY
South Africa 48 47 ZAR Terms ZAR Terms
Tender
Others (SSA &
CGA) Q1 FY20 Q1 FY21
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Key Business Highlights[2]

• Growth in the quarter driven by strong demand across prescription, OTC and tender business volumes

• Private business grew by 6.6% while market declined by 1.2%; continued to be the 3[rd] largest pharmaceutical corporation (Rx + OTC) within the SA private market with 7.2% market share

• OTC market share stood at 7.7%; maintained 3[rd] overall and 1[st] in addressable market; grew at 9.3% while market declined by 0.5%

• Financial numbers are rounded off │2. Market data as per IQVIA MAT Jun’20

Investor Presentation: Q1FY21

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North America: Significant growth driven by contribution from new launches and Albuterol ramp-up

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Continued momentum DHE Nasal spray
Generic Albuterol Launch of Icatibant
in complex and launched with 180
ramp-up on track pre-filled syringe
differentiated launches day CGT exclusivity
Key Business Highlights Q1 Y-o-Y
• Generic Albuterol launched and gaining significant market $ Mn
share in Proventil HFA market
• Litigation settlement with Amgen on Cinacalcet
• Pipeline Update: 161
Base includes
o Launched dihydroergotamine mesylate nasal spray
Cinacalcet
with 180 day of CGT exclusivity
o Launch of Icatibant injectable pre-filled syringe
135 Strong YoY growth
adjusted for Cincalcet
• US Specialty: in base
o CNS Out-licensing: Actively exploring partnerships for
the other CNS asset
14% QoQ
o Working with USFDA for IV Tramadol NDA goal date
Q1 FY20 Q1 FY21
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Investor Presentation: Q1FY21

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ANDA [[1]] Portfolio & Pipeline (As on 30 [[th]] June 2020)
Total 175 21 66 262 ANDAs
200 ANDA Portfolio
180
160 29
140
120
57
100
9
80
4
60
21
40 80 3
20 1 3 38
11
0 6
Approved ANDAs Tentatively Approved ANDAs Under Approval ANDAs
2
Cipla Ltd PEFPAR Invagen Partnered ANDAs
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ANDA[[1]] Portfolio & Pipeline (As on 30[[th]] June 2020)

1 Does not include Vet product ANDAs

2 PEPFAR approved ANDAs can be commercialised in US

Investor Presentation: Q1FY21

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Emerging Markets, Europe and API

• Emerging Markets Europe API

• $ Mn $ Mn $ Mn 32

• 60 29 9% 26 -7% 24

• 50%

• 40

• Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21

• ▪ Growth in the quarter driven by strong ▪ ▪

• demand and base effect from last Strong performance in key DTM[1] Adjusted YoY revenue growth at 11% markets for one-time order in Q1FY20

• year; adjusted growth for the quarter is 10% YoY ▪ FPSM pMDI market share is 20%[2] and ▪ Continued momentum with global

• ▪ Beclomethasone 9%[2] in UK seedings & lock-ins Expanded the biosimilar franchise with 4 more molecules ▪ Continues to deliver higher margins

• ▪ on product mix and pricing Continued focus on value generating DTM markets

• Direct-to-Market│2. internal estimates

Investor Presentation: Q1FY21

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Continued progress across our key strategic priorities

South Africa[1] & Emerging markets

Lung leadership across markets

• US Generics

• • Continue to build the US Generics pipeline with differentiated products

One-India

• Continue to build the US • Leveraging Cipla’s drugGenerics pipeline with device capabilities to differentiated products establish a global franchise

• • Strong ramp-up in Albuterol • 2[nd] largest inhaler selling company with ~120[2] m units

• • DHE Nasal spray and sold globally

• Icatibant prefilled syringe launched • Unlocking of the Respiratory franchise in the US with

• • Focused R&D investments healthy market share gain

• towards value accretive in Albuterol

• assets • Continued pipeline

• • Actively exploring expansion with

• partnerships for CNS asset differentiated products

• Continue to drive synergies across the three businesses

• Private market execution in SA

• Rx growth 9% YoY

• Fastest growing corporation in private market; new brands significant growth driver

• Naselin and Clocip brands transitioned from trade Gx to consumer

• 3[rd] largest within the SA private market with 7.2% market share

• 5 transitions since Q4FY20; sharp consumer insights and strategic promotion

• OTC market share stood at 7.7%; 3[rd] overall and 1[st] in addressable market

• GoApptive investment to expand reach beyond tier2 markets

• Expanding biosimilar franchise with 4 deals signed in emerging markets

• Significant business reimagination and digital adoption

• Leadership position in Respiratory across multiple markets in EMs

Investor Presentation: Q1FY21

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1. Market data as per IQVIA MAT Jun’ 20 │2. As per IQVIA

1

2

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Priorities for the coming quarters: Sustaining growth through the pandemic

Sustaining leadership in the post pandemic environment

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o Business re-imagination and cost optimisation for adapting to the new normal and continued delivery across multiple strategic priorities o Proactively de-risking the business by diversifying sources for critical APIs, intermediates and KSMs and maintaining adequate inventory levels of finished goods in the channel

India

o Driving market beating growth in India business through focused execution of the One-India Strategy o Leverage digital transformation for fortifying channel and leveraging demand patterns

South Africa

o Continue market outperformance in the private market portfolio with new launch momentum o Sustain the dominant play in the OTC space and drive further growth in the Mirren portfolio

US:

4

o Drive share and focus on maximizing value opportunity across key assets including Albuterol o Continue to track Respiratory filings closely; focused R&D investments o Finalize out-licensing for CNS Specialty assets; work with US FDA on IV Tramadol

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Quality and Compliance

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

Investor Presentation: Q1FY21

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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: Q1FY21

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