Cipla Ltd. — Investor Presentation 2021

Jan 29, 2021

29[th] January, 2021

(1) BSE Limited (2) National Stock Exchange of India Limited Listing Department, Listing Department 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 29[th] January, 2021.

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 RAJENDRA e6f40ac91535876f12ba1fa5ba45cc5cc 8db6cb, postalCode=122001, st=HARYANA, serialNumber=0be85c0408d0e3afd663 CHOPRA 669f5314248a72fdcdf34d01d48d472d 7cf9262696f6, cn=RAJENDRA CHOPRA Date: 2021.01.29 16:52:27 +05'30' Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Mandar Kurghode

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Investor Presentation Q3FY21

29-1-2021

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CLICK TO EDIT MASTER TITLE STYLE DISCLAIMER

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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 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.

In Q3, we continued our efforts globally in combating Covid-19 and delivering on our promise of ‘Caring for life’ CLICK TO EDIT MASTER TITLE STYLE

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• Patients Physicians

• ❖ 2 lac+ severe COVID patients ❖ 600+ virtual conferences & served during the quarter; 4 webinars engaging 75k+ lac+ during the pandemic physicians ❖ Teleconsultation support to physicians

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Employees

• ❖ Hybrid return to office approach with stringent safety protocols; option to work from home

• ❖ Developing knowledge building in partnership with leading universities for physicians

Comprehensive Covid-19 portfolio for diagnosis and treatment

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Cipremi® Remdesivir

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Ciplenza® Actemra® CIPHANDS® Favipiravir Tocilizumab Sanitizer range

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ELIFast®

COVID-19 antibody detection for India CIPtest® Rapid Antigen Detection Test for Covid-19 diagnosis Covi-G® COVID-19 rapid antibody detection for EMEU

We commissioned the largest open access solar power plant under group captive scheme in Maharashtra CLICK TO EDIT MASTER TITLE STYLE

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Largest open access solar power plant in the state

• ❖ 30 MW solar group captive project in Tuljapur, Maharashtra spread across an area of 11 acres

• ❖ Project in partnership with AMP Solar Power System Ltd.

Securing green energy requirements for manufacturing units

• ❖ Renewable power for Kurkumbh and Patalganga units ❖ ~35,000 tonnes of carbon dioxide equivalent (tCO2e) emissions avoided over 25 years of project life

Growing solar energy portfolio

• ❖ 48MW added through various initiatives since FY19

• ❖ 4 manufacturing units now on renewable power

Continued commitment to 2025 sustainability goals

• ❖ By 2025, Cipla plans to achieve carbon and water neutrality, zerowaste to landfill, anti-microbial resistance stewardship and green chemistry

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Relentless commitment towards contributing to a greener environment by promoting the use of cleaner and renewable sources of energy

Strong demand, sustained cost optimization and operational excellence drives Q3 performance CLICK TO EDIT MASTER TITLE STYLE

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One India strategy progressing well Overall Revenue

Solid traction in top consumer brands

(YoY Growth) Overall 6[th] Consecutive quarter 22% 15% 58% #1 in pain relief revenue of double-digit growth in (YoY Growth) prescription business Nicotex Cofsils Omnigel South Africa performance in-line 18% (YoY Growth) Overall 6% Fastest growing amongst SSA Solid performance SAGA (YoY growth in $ top 5 corporations in South 15% (YoY growthin $ Terms) across geographies Terms) Africa private market CGA 63% Overall EBITDA[1] North America continues to scale-up Continued traction in gRevlimid settlement US$141Mn 6% Albuterol strengthens complex Q3FY21 Revenues (YoY Growth) and new launches generic pipeline EBITDA 24.8% API EMEU Margin Q3FY21 Emerging markets 46% Sustained 18% 69% Cost Europe 28% (YoY growth in $ (YoY Growth) Optimization (YoY growth in $ Terms) Terms)

1. Includes one-time income from Lenalidomide settlement with Celgene

Strong balance sheet and robust free cash flow generation CLICK TO EDIT MASTER TITLE STYLE

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Net Debt (INR Cr) Net Debt / Equity Cash Balances [1 ]
807 0.05 (INR Cr)
2,746
Net cash Net cash
positive positive
position position 2,009
(939)
(0.05)
Mar'20 Dec'20 Mar'20 Dec'20
Mar'20 Dec'20
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• Continued governance on cash and liquidity management

• Focused efforts on working capital management and robust free cash flow generation

• $137Mn invagen loan repaid 1 year ahead of schedule ; INR 300 cr working capital loan in India repaid during the quarter

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

• included cash and cash equivalents and current investments

Financial Performance – Q3FY21 CLICK TO EDIT MASTER TITLE STYLE

Revenues INR 5,169 Cr 18% YoY

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Q3 FY21 (Consolidated)
Actuals
vs Q3 FY 20
(Rs Cr)
Total Revenue from
5,169 18%
Operations
EBITDA [2] 1,281 69%
EBITDA % of revenue 24.8% 744 bps
PAT 748 113%
PAT % of revenue 14.5% 644 bps
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R&D INR 221 Cr Focused R&D investments

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EBITDA[2] 24.8% 69% YoY INR 1,281 Cr │

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Revenue [1] Break-up
Others,
API, 4%
1%
Europe, 5%
Emerging
Mkts, 9%
India, 43%
SAGA,
18%
North America, 20%
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1. As per IQVIA 1 India includes Rx + Gx+ CHL; Others: Includes CNV business ; SAGA includes South Africa, Sub-Saharan Africa and Cipla Global Access; 2. Figures have been rounded-off │2. Includes one-time income from Lenalidomide settlement with Celgene Sri Lanka, Myanmar, Nepal and Morocco

+ One India (Rx Gx+ CHL[1] ): Consistent execution driving growth across businesses in India CLICK TO EDIT MASTER TITLE STYLE

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Key Business Highlights

Prescription business

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• ❖ Growth led by covid-19 portfolio, healthy traction in respiratory and chronic therapies, recovery in hospital and acute businesses with opening-up of OPDs

25% (YoY growth)

	Therapy2	Market Rank	Market share	Cipla Growth	Market growth
	• 8 Overall Chronic 2 8.1% 6% 10%
	Respiratory 1 25.4% 14% -4%
	Urology 1 14.4% 8% 7%
	Cardiac 5 5.2% 9% 15%
	Derma 11 2.7% 15% 8%

Trade generics business:

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• ❖ 7% YoY growth adjusted for brands transitioned to consumer health business.

• ❖ Healthy seasonal demand across regions

Consumer health business:

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INR 250 Cr+

• ❖ Strong demand for organic products and continued traction in our consumer brands post transfer from trade generics business

(9MFY21 revenue)

One India Q3 Y-o-Y

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Rs. Cr
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2,231
22%
1,834
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Q3FY20
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Q3FY21

1. CHL – Cipla Health Limited │2. Market data as per IQVIA Oct’20 - Dec’20

Solid traction across top consumer brands CLICK TO EDIT MASTER TITLE STYLE

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Anchor consumer brands
#1 18.6%
Pain Relief Category market share in Dec’20
46%
(YTD YoY growth)
#1 98.1%
NRT Category market share in Nov’20
14%
(YTD YoY growth)
#2 5.9%
Cough & Cold Category market share in Dec’20
82%
(YTD YoY growth)
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Emerging consumer brands

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8% (YTD YoY growth) 38% (YTD YoY growth) 87% (YTD YoY growth) 24% (YTD YoY growth)

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1. Market data as per Nielsen

SAGA[1] : South Africa, Sub-Saharan Africa and Cipla Global CLICK TO EDIT MASTER TITLE STYLE Access

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Key Business Highlights

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South Africa
❖ Overall business in-line with last year for the quarter in ZAR terms
Private 11% Tender 8%
market (9MFY21 YoY growth market (9MFY21 YoY growth
in ZAR Terms) in ZAR Terms)
• 1
0
Market Segment [2] Market Rank Market share Cipla Growth Market growth
South Africa private 3 7.1% 2.4% -2.0%
South Africa OTC 3 7.2% 6.4% 3.3%
Continued expansion of product portfolio: Strategic partnership with
Alvogen for 4 oncology products
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Sub-Saharan Africa (SSA) & Cipla Global Access (CGA)

❖ SSA: 15% YoY growth in $ terms on strong commercial execution

• ❖ CGA: 63% YoY growth in $ terms on higher order delivery in the quarter

Q3 Y-o-Y

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$ Mn
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33 45
29
26
55 52
Q3FY20 Q3FY21
South Africa
Private Others (SSA &
CGA)
South Africa
Tender
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1. Financial numbers are rounded off │2. Market data as per IQVIA MAT Dec’20

North America: Momentum continues driven by traction in new launches CLICK TO EDIT MASTER TITLE STYLE

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Key Business Highlights

Q3 Y-o-Y

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US Generics ramp-up continues

• ❖ Continued expansion in market share for Albuterol and traction in other assets along with growth in the institutional channel

• ❖ In 9MFY21, the US business continues to deliver robust profitability

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$ Mn
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• ❖ US respiratory franchise $100Mn+ in 9MFY21

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• 1 141
1
6%
Albuterol HFA market [1] segment TRx Market Rank TRx Market share
133
gProventil 1 84.6%
Generic market (AG + Gx) 3 15.7%
Total market (Brand + AG + Gx) 3 12.3%
Pipeline update
❖ gAdvair is under active review; continuous engagement with agency
❖ 2 inhalation assets to move into clinical trials shortly Q3FY20 Q3FY21
❖ gRevlimid settlement improves earnings visibility and enhances complex
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• ❖ gRevlimid settlement improves earnings visibility and enhances complex product portfolio

• Market data as per IQVIA week ending 15[th] January 2021

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ANDA [1] Portfolio & Pipeline (As on 31 [st] December 2020)
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Total ANDAs 165 19 66 250
22
56
9
4
21
78 4
3
37
1
10
5
Approved ANDAs Tentatively Approved ANDAs Under Approval ANDAs
2
Cipla Ltd PEFPAR Invagen Partnered ANDAs
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1 Does not include Vet product ANDAs

2 PEPFAR approved ANDAs can be commercialised in US

Emerging Markets, Europe and API CLICK TO EDIT MASTER TITLE STYLE

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Emerging Markets Europe API
Q3 Y-o-Y Q3 Y-o-Y Q3 Y-o-Y
$ Mn 66 $ Mn $ Mn
34
28% 27
46% 18%
27 23
45
Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21
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Key Business Highlights

Key Business Highlights

Key Business Highlights

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• ❖ Continued demand across all regions

• ❖ #1 Indian exporter to emerging markets[1]

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• ❖ Consistent in-market performance and market share gains in key DTMs[2]

• ❖ FPSM pMDI market share is ~20%[3] and Beclomethasone 12.8%[3] in UK

• ❖ Seamless execution of orderbook and wellentrenched customer relationships

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• ❖ Continued traction with global seedings & lock-ins

• As per IntelliMax, markets other than India, US and EU for Apr’20 – Nov’20 │ 2. Direct-to-Market│3. internal estimates

Our priorities include CLICK TO EDIT MASTER TITLE STYLE

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Maintain market beating growth in large branded and unbranded generic franchises of India, South Africa and augment consumer wellness franchise

Expanding lung leadership globally and maximising value opportunity in US complex generics by prioritizing key launches with focused execution and collaborating with regulatory authorities Scaling up businesses across branded and generic DTMs of Europe and Emerging markets through execution on organic and partnered launches

Accelerating digital transformation to capitalize opportunities and growth opportunities across markets

Focus on regulatory compliance across manufacturing locations and embrace best-in class globally benchmarked ESG[1] practices

Sustained expansion in RoIC over the long term

1. Environmental, Social and Governance

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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