Cipla Ltd. — Investor Presentation 2020

Nov 6, 2020

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• document or use this space to emphasize a key point. To place this text box anywhere on the page, just drag it.] (1) BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
  • [Cite your source here.] (2) National Stock Exchange of India Limited Listing Department Exchange Plaza, 5th floor, Plot no. C/1, G Block, 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 RAJENDRA CHOPRA Digitally signed by RAJENDRA CHOPRA DN: c=IN, o=Personal, 2.5.4.20=4987ad48c3965cfde78c8ea69e6f 40ac91535876f12ba1fa5ba45cc5cc8db6c b, postalCode=122001, st=HARYANA, serialNumber=0be85c0408d0e3afd66366 9f5314248a72fdcdf34d01d48d472d7cf926 2696f6, cn=RAJENDRA CHOPRA Date: 2020.11.06 18:16:13 +05'30'

Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Mandar Kurghode

Investor Presentation Q2FY21

06-11-2020

Disclaimer

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.

Cipla's efforts in combatting Covid-19

• ❖ 1.5 lakhs+ severe Covid-19 patients serviced with supply of Actemra ®, Cipremi ® and Ciplenza ®
• ❖ 95,000+ patients supported via 24*7 helpline for Covid-19 products
• ❖ Offered support for post-recovery of mild-to-moderate Covid-19 patients

Patients Physicians Employees

• ❖ Teleconsultation support to 20,000+ doctors to ensure safe and convenient healthcare access

• ❖ Engagement with 2.5 lakhs+ doctors through virtual conferences and continuing medical education seminars

• ❖ Developing knowledge building platforms for healthcare professionals by partnering with leading universities

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

• ❖ 24*7 ambulance and quarantine facility in India for select locations

• ❖ Doctor consultation facility

• ❖ Health Insurance with COVID care cover

Strong demand, resilient operations and cost control drive Q2 performance

Continued progress across our key strategic priorities

One-India	South Africa & Emergingmarkets	US Generics
•Continue to drive synergiesacross the three businessesPrescription growth 14% YoY;•continued servicing with Covidproducts•Continued strong demand andhigh order flow across regions intrade generics•Healthy demand in consumerhealth brands transitioned fromtrade generic business•Digital adoption and launch ofBerokZindagi3.0	•3rdlargest within the SA privatemarket with 7.0% market share1;new brands significant growthdriver•OTC market share stood at 7.2%;rdoverall and 1st3in addressablemarket1•Australia and focused DTMs2witnessing strong demand andachieving scale•Establishing biosimilar franchisevia partnerships across emergingmarkets	•Continue to build the US pipelinewith differentiated productsContinued momentum across•new launches such as Albuterol,Esomeprazole oral suspension,DHE Nasal spray; DimethylFumarate DR launchedFocused R&D investments•towards value accretive assets•Continued investments inexpanding capacity anddevelopmental capabilities forglobal respiratory franchise

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

• 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

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

India (Rx + Gx+ CHL1 ): Consistent execution driving growth across businesses in India

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 IQVIA2 , 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.

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

Key Business Highlights2

• 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 IQVIA2 , 3rd largest pharmaceutical corporation in SA private market with 7.0% market share
• As per IQVIA2 , OTC market share stood at 7.2%; maintained 3rd rank overall and 1st 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

North America: Growth driven by continued momentum in new launches

Key Business Highlights

• Continued traction in new launches namely Albuterol, Esomeprazole oral suspension and DHE Nasal Spray supporting the base business; Launched dimethyl fumarate DR capsules
• Growth across government and institutional channel driven by portfolio expansion
• Largest TRx market share of ~84% in the Proventil market as per IQVIA week ending 2nd October 2020
• US business profitability trending close to company level in H1FY21

1 Does not include Vet product ANDAs

2 PEPFAR approved ANDAs can be commercialised in US

Emerging Markets, Europe and API

• Maintained scale with continued demand across all regions
• Remdesivir supplies commenced across multiple markets; Covid kits launched
• Continued focus on value generating DTM1 markets

• Strong performance in key DTM1 markets
• FPSM pMDI market share is ~20%2 and Beclomethasone 10.7%2 in UK

• Strong sales momentum and orderbook
• Continued traction with global seedings & lock-ins
• Higher margins driven by product mix and pricing

Priorities for the coming quarters: Sustaining growth through the pandemic

1	Digitaladoption andresilientoperations	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 andKSMs and maintaining adequate inventory levels
2	Drivingprofitablegrowth	One-India: Driving market beating growth and scaling India across the three businesses••South Africa:Continue market outperformance in the private market & OTC portfolio withnew launch momentum•US:Drive share and focus on maximizing value opportunity in complex genericsRespiratory: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 andCompliance	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

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