Cipla Ltd. — Regulatory Filings 2021

Oct 26, 2021

26th October, 2021

• (1) BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
• (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

(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, we are enclosing the investor presentation dated 26th October, 2021.

Kindly take it on record.

Thanking you,

Yours faithfully,

For Cipla Limited

RAJENDR A KUMAR CHOPRA Digitally signed by RAJENDRA KUMAR CHOPRA Date: 2021.10.26 18:38:55 +05'30'

Rajendra Chopra Company Secretary

Encl: as above

Prepared by: Pratiksha Mangaonkar

Investor Presentation

Q2FY22

October 26, 2021

CLICK TO EDIT MASTER TITLE STYLE DISCLAIMER

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.

CLICK TO EDIT MASTER TITLE STYLE Strong traction in core therapies across branded markets and continued respiratory momentum in the US drive Q2FY22 performance Overall Revenue Overall EBITDA 10% (Q2 YoY Growth in INR Terms) Strong delivery across branded & generic markets; Covid contribution normalizes EBITDA Margin 22.2% 4% (Q2 YoY Growth in INR Terms) One India 16% (Q2 YoY Growth in INR Terms) SAGA SA Private North America International Markets & API Sustained momentum across core therapies on a high FY21 base; strong growth in flagship brands 8% 20% Overall SAGA (Q2 YoY growth in \$ Terms) (Q2 YoY growth in ZAR Terms) \$142 Mn Q2FY22 Revenues Revenue at multi-quarter high; Steady momentum in core products offsetting price erosion in rest of the portfolio 9% (Q2 YoY growth in \$ Terms) 14% (Q2 YoY growth in \$ Terms) International API

CLICK TO EDIT MASTER TITLE STYLE Strong capital structure and robust free cash flow generation continues in Q2FY22

• Growth in operating profitability and prudent working capital management drives robust free cash flow generation
• Net cash positive position continues at Sept-21 end reflects strong balance sheet health

• Prepaid USD 137.5 Mn outstanding InvaGen acquisition debt during the quarter

• Net Cash = Total Cash balances - Total debt | 2. Includes cash and cash equivalents and current investments excluding unclaimed dividend balances

CLICK TO EDIT MASTER TITLE STYLE Continued expansion in portfolio offerings with long-term partnerships & launches across our strategic markets

One India	✓ Strategic partnership with Eli Lily for diabetic products Humalog® and TrulicityTM
South Africa	New launches in CNS, Respiratory and ARV therapies to ✓ strengthen our chronic portfolio mix
International Markets	Launched Bevacizumab Biosimilar under partnership in Spain to ✓ strengthen our oncology portfolio
US Generics	Approval for Difluprednate Ophthalmic Emulsion 0.05% ✓ Albuterol Gx share1 18.2% Arformoterol Gx share1 39% ✓

Financial Performance – Q2FY22

Revenues	INR 5,520 Cr		10%
		Q2 FY22 (Consolidated)			Revenue1	Break-up
		Actuals (Rs Cr)	vs Q2 FY 21		API, 3% Others, 1%
Total Revenue from Operations		5,520	10%	International Markets, 15%
EBITDA		1,226	4%
EBITDA % of revenue		22.2%	-114 bps
PAT		711	7%	SAGA, 18%
PAT % of revenue		12.9%	-32 bps
R&D	INR 274 Cr		Priority projects spends on track

1. As per IQVIA 2. Sri Lanka, Myanmar, Nepal and Morocco 1 India includes Rx + Gx+ CHL; SAGA includes South Africa, Sub-Saharan Africa and Cipla Global Access; International Markets include Emerging Markets and Europe| Figures have been rounded-off

CLICK TO EDIT MASTER TITLE STYLE One India (Rx + Gx+ CHL¹ ): Consistent execution driving growth across businesses in India

Key Business Highlights

Branded prescription business

• ❖ Sustained volume traction across therapies in core portfolio
• ❖ Acute and respiratory nebulization tracking well
• ❖ Covid portfolio normalizing on a YoY and sequential basis
• ❖ Strategic in-licensing for widening therapy base continues with Antidiabetic deal with Eli LIly

Market Rank	Market share
2 • 7	7.8%
1	23.1%
1	14.6%
3	7.5%
5	5.3%

Trade generics business

• ❖ Healthy order flow benefiting from strong demand across regions
• ❖ Continued momentum in flagship brands

Consumer health business

❖ Robust traction in anchor brands as well as brands transferred from trade generics business

1. CHL – Cipla Health Limited │2. Market data as per IQVIA IMS MAT September 2021

Global consumer health franchise gaining traction

7.0+% contribution to overall revenues in H1FY22; Improving consumer health outcomes

CLICK TO EDIT MASTER TITLE STYLE SAGA¹ : South Africa, Sub-Saharan Africa and Cipla Global Access

Key Business Highlights

South Africa

• ❖ Continued market beating growth in South Africa (SA) private business; tender business performed inline with expectations
• ❖ Market beating growth in CNS, respiratory and antiinfectives therapies

Market Segment2	Market Rank	Market share	Cipla Growth	Market Growth
South Africa private	3	7.3%	8.7%	5.4%
South Africa OTC	3	6.8%	8.0%	10.6%

Sub-Saharan Africa (SSA) & Cipla Global Access (CGA)

❖ Performance attributed to delays in order confirmation from select clients

20%

(Q2 YoY growth in ZAR Terms)

SA Private market

SAGA: 8% Y-o-Y

1. Financial numbers are rounded off │2. Market data as per IQVIA MAT August 2021

CLICK TO EDIT MASTER TITLE STYLE North America: Continued traction in core formulation portfolio

Key Business Highlights

US Generics ramp-up to multi-quarter high

• ❖ Steady momentum in core products offsetting price erosion in rest of the portfolio
• ❖ New approval: Difluprednate Ophthalmic Emulsion 0.05%
• ❖ Focus continues on limited competition complex launches

Albuterol HFA1	Generic market (AG + Gx)	Total market (Brand + AG + Gx)
TRx Market Rank	4	4
TRx Market share	18.2%	14.6%
Arformoterol1	Generic market (AG + Gx)	Total market (Brand + AG + Gx)
TRx Market Rank	2	3
TRx Market share	39%	24%
Pipeline update ❖	Closely working with USFDA on gAdvair

142

North America

Q2 Y-o-Y

2%

Q2FY21 Q2FY22

\$ Mn

139

2 PEPFAR approved ANDAs can be commercialised in US

International Markets and API

97 111 - 20 40 60 80 100 120 Q2FY21 Q2FY22 Q2 Y-o-Y International Markets 14% \$ Mn

• ❖ Emerging markets business resumed middle eastern supplies, demonstrated strong DTM performance and contribution from Covid therapy products
• ❖ Bevacizumab Biosimilar launched under partnership in Spain

25 23 Q2FY21 Q2FY22 Q2 Y-o-Y API \$ Mn -9%

Key Business Highlights Key Business Highlights

• ❖ Sales momentum supported by strong customer relationships
• ❖ Continued traction with global seedings & lock-ins

CLICK TO EDIT MASTER TITLE STYLE Our FY22 priorities include

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

Ensuring Covid portfolio availability and maximize patient reach

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 including biosimilars

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 ESG¹ practices

Sustained expansion in RoIC over the long term

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