Cipla Ltd. — Investor Presentation 2020

Nov 6, 2020

6[th] November, 2020

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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 6[th] November, 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 RAJENDRA 40ac91535876f12ba1fa5ba45cc5cc8db6c b, postalCode=122001, st=HARYANA, serialNumber=0be85c0408d0e3afd66366 9f5314248a72fdcdf34d01d48d472d7cf926 CHOPRA 2696f6, cn=RAJENDRA CHOPRA Date: 2020.11.06 18:16:13 +05'30' Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Mandar Kurghode

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Investor Presentation Q2FY21

06-11-2020

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: Q2FY21

06-11-2020

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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

• ❖ 1.5 lakhs+ severe Covid-19 patients ❖ Teleconsultation support to 20,000+ serviced with supply of Actemra ®, doctors to ensure safe and Cipremi ® and Ciplenza ® convenient healthcare access

  • Employees

  • ❖ Continued work from home with several enabling programs for ensuring well-being, care and support

• ❖ Engagement with 2.5 lakhs+ doctors through virtual conferences ❖ 24*7 ambulance and quarantine and continuing medical education facility in India for select locations seminars

• ❖ 95,000+ patients supported via 24*7 helpline for Covid-19 products

• ❖ Doctor consultation facility

• ❖ Offered support for post-recovery of mild-to-moderate Covid-19 patients

• ❖ Developing knowledge building platforms for healthcare ❖ Health Insurance with COVID care professionals by partnering with cover leading universities

Investor Presentation: Q2FY21

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Strong demand, resilient operations and cost control drive Q2 performance

Overall Revenues 1 India delivers growth across all lines of business One India 15% 16% India Rx India Gx CHL (YoY Growth) (QoQ Growth) 17% 30% 5[th] consecutive 2x growth Strong demand Robust performance across geographies YoY QoQ quarter of market across regions YoY and transferred led by organic beating growth brands EBITDA 2 US business continues 3 South Africa delivers 23% to strengthen strong growth Margin Q2FY21 Strong 29% 12% US$141mn 5% SA performance QoQ (YoY Growth) (QoQ Growth) Q2FY21 Revenues 14% across private and tender Continued momentum in YoY in ZAR Terms businesses Sustained cost control new launches

Investor Presentation: Q2FY21

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Continued progress across our key strategic priorities

South Africa & Emerging markets

One-India

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US Generics

• Continue to drive synergies • 3[rd] largest within the SA private • across the three businesses market with 7.0% market share[1] ; new brands significant growth

• • Prescription growth 14% YoY; driver • continued servicing with Covid products • OTC market share stood at 7.2%; 3[rd] overall and 1[st] in addressable

• • Continued strong demand and market[1] high order flow across regions in trade generics • Australia and focused DTMs[2] • witnessing strong demand and

• • Healthy demand in consumer achieving scale

• health brands transitioned from • trade generic business • Establishing biosimilar franchise via partnerships across emerging

• • Digital adoption and launch of markets

• Continue to build the US pipeline with differentiated products

  • Continued momentum across new launches such as Albuterol, Esomeprazole oral suspension, DHE Nasal spray; Dimethyl Fumarate DR launched

Focused R&D investments towards value accretive assets Continued investments in expanding capacity and developmental capabilities for global respiratory franchise

• Digital adoption and launch of Berok Zindagi 3.0

Investor Presentation: Q2FY21

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1. Market data as per IQVIA MAT Sept’ 20 │2. Direct to Market

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

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Net Debt Net Debt / Equity Cash Balances [1]
807 Net cash 0.05 Net cash 3,623
positive position positive position
2,009
(0.03)
(453)
Mar'20 Sept'20 Mar'20 Sept'20 Mar'20 Sept'20
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• Strong governance set-up for cash and liquidity management

• Focused efforts on working capital management and improved cash flow generation

• Net cash positive position at September-20 end reflects strong balance sheet strength

Investor Presentation: Q2FY21 │1. included cash and cash equivalents and current investments

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Financial Performance – Q2FY21
Revenues INR 5,038 Cr 15% YoY EBITDA INR 1,177 Cr │ 23.4% 29% YoY
Q2 FY21 (Consolidated) Revenue [1] Break-up
Actuals Others,
vs Q2 FY 20 Global API, 4%
(Rs Cr) 1%
Europe, 5%
Total Revenue from
5,038 15%
Operations
Emerging
Mkts, 9%
EBITDA 1,177 29% India, 41%
EBITDA % of revenue 23.4% 266 bps
SAGA,
PAT 665 41%
18%
PAT % of revenue 13.2% 248 bps
Focused R&D
R&D INR 226 Cr
investments North America, 21%
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Financial Performance – Q2FY21

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: Q2FY21

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India (Rx + Gx+ CHL [1] ): Consistent execution driving growth
across businesses in India
Q2 Y-o-Y
India Rx Rs Cr
2,090
13%13% 14% 12% 14% 17%
10% 10% 9% 1,789
4%
5 [th] consecutive
quarter of market
-4% beating growth
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
IPM YoY Growth Cipla India Rx (Reported) YoY Growth
Q2 FY20 Q2 FY21
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Key Business Highlights

• The prescription business grew 14% YoY led by Covid portfolio, traction in chronic therapies coupled with a recovering hospital business partially offset by subdued seasonal triggers in acute therapies

• As per IQVIA[2] , outperformed the market in Respiratory, Inhalation and Urology while Cardiology reported strong double digit growth on a YoY basis

• The trade generics business delivered healthy growth for the quarter driven by strong demand and high order flow

• Consumer health business: H1FY21 revenue stood at INR 180+ crore; Strong demand in consumer brands post transfer from trade generics business.

• CHL – Cipla Health Limited │2.Market data as per IQVIA July-September’20

Investor Presentation: Q2FY21

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

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Q2 Y-o-Y
$ Mn
South Africa Market
14% Q2 YoY
48
ZAR Terms
28
21 24 South Africa Private
South Africa
Private 9% Q2 YoY
South Africa 56 53 ZAR Terms
Tender
Others (SSA &
CGA) Q2 FY20 Q2 FY21
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South Africa Market 14% Q2 YoY ZAR Terms

South Africa Tender 28% Q2 YoY ZAR Terms

Key Business Highlights[2]

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

• SSA and CGA report strong growth attributable to robust order book and supplies

• As per IQVIA[2] , 3[rd] largest pharmaceutical corporation in SA private market with 7.0% market share

• ▪ As per IQVIA[2] , OTC market share stood at 7.2%; maintained 3[rd] rank overall and 1[st] in addressable market; grew at 8.2% while market grew at 2.6%

• Exclusive partnership with Alvotech for commercialisation of 5 biosimilar candidates in immunology and oncology space

Investor Presentation: Q2FY21

1. Financial numbers are rounded off │2. Market data as per IQVIA MAT September’20 9

North America: Growth driven by continued momentum in new launches

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Key Business Highlights Q2 Y-o-Y
•
Continued traction in new launches namely $ Mn
Albuterol, Esomeprazole oral suspension and DHE
Nasal Spray supporting the base business;
Launched dimethyl fumarate DR capsules
141
135 4%
• Healthy YoY growth
Growth across government and institutional
adjusted for Cinacalcet
channel driven by portfolio expansion Base in base
includes
Cinacalcet
• 5% QoQ
Largest TRx market share of ~84% in the Proventil
market as per IQVIA week ending 2 [nd] October
2020
•
US business profitability trending close to
company level in H1FY21 Q2 FY20 Q2 FY21
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Investor Presentation: Q2FY21

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ANDA [[1]] Portfolio & Pipeline (As on 30 [[th]] Sept 2020)
Total 165 19 66 250 ANDAs
ANDA Portfolio
22
56
9
4
21
78 4
1 3 37
10
5
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]] Sept 2020)

1 Does not include Vet product ANDAs

2 PEPFAR approved ANDAs can be commercialised in US

Investor Presentation: Q2FY21

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Emerging Markets, Europe and API

• Emerging Markets Europe API

• $ Mn $ Mn $ Mn 33

• 64 64 24% 25 27 15% 22

• Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21

• ▪ Maintained scale with continued ▪ Strong performance in key DTM[1] ▪ Strong sales momentum and

• demand across all regions markets orderbook

• ▪ Remdesivir supplies commenced across ▪ ▪ FPSM pMDI market share is ~20%[2] Continued traction with global

• multiple markets; Covid kits launched and Beclomethasone 10.7%[2] in UK seedings & lock-ins

• ▪ Continued focus on value generating DTM[1] markets ▪ Higher margins driven by product mix and pricing

• Direct-to-Market│2. internal estimates

Investor Presentation: Q2FY21

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Priorities for the coming quarters: Sustaining growth through the pandemic

1

Digital adoption and

resilient

operations

• Adopting digital transformation for patient and channel connect to expand access and leverage demand patterns

• Proactively de-risking the business by diversifying sources for critical APIs, intermediates and KSMs and maintaining adequate inventory levels

• One-India: Driving market beating growth and scaling India across the three businesses

• South Africa: Continue market outperformance in the private market & OTC portfolio with new launch momentum

Driving 2 profitable growth

• US: Drive share and focus on maximizing value opportunity in complex generics

• Respiratory: Continue focus on expanding our global respiratory franchise

• Emerging Markets: Focus on growth through organic launches and partnerships to augment generic and biosimilar footprint

• Drive Return on Invested Capital expansion

3

Quality and Compliance

• Continue to engage with US FDA to comprehensively address observations in Goa

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

Investor Presentation: Q2FY21

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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: Q2FY21

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