Lupin Ltd — Investor Presentation 2020

Aug 7, 2020

August 7, 2020

BSE Limited

Department of Corporate Services, P. J. Towers, Dalal Street, MUMBAI - 400 001.

National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

Dear Sir/Madam,

Sub: Q1 FY2021 Investor Presentation.

Pursuant to Regulation 30(2) read with Schedule III Part A (15) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, enclosed is a copy of the Q1 FY2021 Investor Presentation.

Kindly confirm receipt.

Thanking you,

Yours faithfully, For LUPIN LIMITED

R. V. SATAM COMPANY SECRETARY (ACS - 11973)

Encl.: a/a

Investor Presentation Q1 FY2021

Safe Harbor Statement

Materials and information provided during this presentation may contain 'forward-looking statements'. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements.

Risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited to, technological advances and patents obtained by competitors. Challenges inherent in new product development, including completion of clinical trials; claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and healthcare cost containment; and governmental laws and regulations affecting domestic and foreign operations.

Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not limited to, inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market acceptance.

You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Lupin – Awards and Accolades

• McKesson Supplier of the Year Award 2019
• India Pharma Innovation of the Year 2019 Department of Pharmaceuticals, Govt. of India
• Operational Excellence in Manufacturing India Pharma 2019
• Lupin's Ankleshwar Facility Wins Gold Award - American Society for Quality
• India Pharma Leader Award - India Pharma 2020 and India Medical Device 2020 conference organized by FICCI and the Ministry of Chemicals and Fertilizers, GOI
• "BEST Award" from ATD 2019
• Excellence in Corporate Social Responsibility India Pharma 2019
• IDMA Corporate Citizen Award 2019 Lupin Foundation
• Lupin ranked No.1 in the Biotech and Pharma, and amongst Top 50 large organisations in the list of top 100 – Great Place to WorkTM for 2019-20
• Awarded by Quality Circle Forum of India at 33rd National Convention on Quality Concepts at IIT BHU, Varanasi
• 3 sites rated 7 by ISRS (International Sustainability Rating System), the highest score in the pharmaceutical sector globally
• Sreeji Gopinathan in CIO Power List 2020 - RPA Icon from Core media

Q1 FY2021 Snapshot

Mr. Nilesh.D.Gupta Managing Director Lupin Limited

"The quarter's performance was impacted by the COVID-19 pandemic and related lockdowns, affecting our key businesses in India and US. We continue to focus on business continuity while ensuring employee safety. Despite the challenges impacting revenues, we improved margins driven by tight expense control. We expect to continue the momentum on margin improvement. This is a pivotal year for us to deliver on our key complex generic assets and to sustain the momentum on the compliance front."

Important developments

Commercial

• Amidst the challenges, maintained outperformance to IPM1 and further improved market share
• Signed distribution agreement in key EU territories for orphan drug NamusclaTM
• Continued traction in API business

Pipeline

• Received European approval for our biosimilar Etanercept (branded as Nepexto®), for all indications of the reference product (Enbrel®)
• NamusclaTM Orphan Drug Designation granted by USFDA for treatment of myotonic disorders
• Filed 4 ANDAs, received 4 ANDA approvals during Q1

Regulatory

• EIR's for Vizag, Nagpur, Pithampur Unit I, Mandideep Unit II during the quarter

• PG 4 • Pithampur facilities (Unit I, Unit II and Unit III) successfully completed UK MHRA inspection

• Note: 1. IQVIA Jun-20

• 1. Before Fx & Other Income

Strategic Vision Well Diversified Pharma Business

• Major revenue contributor now
• Maximize on capability to maintain leadership in US
• Outperform in India
• Attain scale in other EM's

Sustain and Grow Portfolio Execution Build

• Deliver on key complex generics, esp. Inhalation and Injectables

• Continue filing P4 and semiexclusive generics

• Execute on biosimilars

• Create a meaningful Women's Health business in US

• Neurology / CNS focus in other developed markets

Q1 FY2021 Financial Results Review

P&L Highlights – Q1 FY2021

Amount in INR mn	Q1 FY21	% ofsales	Q4 FY20	% ofsales	QoQgrowth	Q1 FY20	% ofsales	YoYgrowth
Net sales	34,686	100.0%	37,910	100.0%	(8.5%)		38,155 100.0%	(9.1%)
Other operating income	593		547			622
Total revenue	35,279		38,457		(8.3%)	38,777		(9.0%)
Gross profit(excl. other operating income)	21,807	62.9%	23,860	62.9%	(8.6%)	24,931	65.3%	(12.5%)
EBITDA	5,314	15.3%	7,339	19.4%	(27.6%)	8,134	21.3%	(34.7%)
PBT before exceptional item	2,725	7.9%	4,123	10.9%	(33.9%)	4,789	12.6%	(43.1%)
Exceptional item	-		(831)1		-	-	-	-
PBT after exceptional item	2,725	7.9%	4,954	13.1%	(45.0%)	4,789	12.6%	(43.1%)
Profit after Tax	1,082	3.1%	3,903	10.3%	(72.3%)	2,634	6.9%	(58.9%)
Net Profit from continuing operations	1,069	3.1%	3,896	10.3%	(72.6%)	2,647	6.9%	(59.6%)
Profit/(Loss) from discontinued operations	0	NA	0	NA	-	384	-	NA
Profit/(Loss) for the period	1,069	NA	3,896	NA	NA	3,031	NA	NA

North America

35% Q1FY21 YoY QoQ 21.1% 23.0%

One-off Metformin recall a setback

4 ANDA filings (during the quarter) 175 Products marketed (cumulative) 158 Filings pending approval (cumulative) US portfolio progressing

Note:

1. IQVIA Jun-20

Consolidating our position in the US1

• Key near term priorities include Continued ramp up in Levothyroxine, Metformin relaunch and Albuterol MDI launch (post approval)
• Bolstered complex injectable pipeline through partnership with ForDoz Pharma
• Restructured the Women's health set up and spend (Opex savings)
• 47 FTF's incl. 16 exclusive FTF await USFDA approval

by Rx

PG 8

India

1. IQVIA Jun-20

India business continues to outperform IPM Leadership across cardiac, diabetes, and respiratory

	5 Year	CAGR%	Lupin Rank1
Therapy	Market	Lupin	MATJun-15	MATJun-20
Acute	8%	6%	13	13
Chronic	12%	14%	5	4
Cardiac	11%	10%	3	3
Anti-diabetics	15%	21%	4	3
Respiratory	10%	15%	4	2

• 63% Chronic contribution1 ; Our chronic segment grew 10% against 5% chronic market growth in Q1FY21
• For Lupin, Anti-Diabetic, Cardiac and CNS registered robust (high singe digit – low teens) growth
• Ranked #1 in New Introductions (NI 24 months)
• Launched 4 brands in Anti-diabetic therapy and 2 Cardiac brands

PG 9

Other Markets

depoelveD	EU5	•Germany: EUR 7.6 mn sales in Q1 FY21•ARV's, Inhalation and CNS are the key focus therapeutic segments•NamusclaTM –Signed distribution agreement in key EU territories
	Australia	•thlargest generics player34•Biosimilar Etanercept approved in Australia
stekr	South Africa	•th largest Rx generics player24; Market leader in CVS space•Q1 FY21 revenues were ZAR 237 mn
amgngir	Brazil	•BRL 55 mn sales in Q1 FY21 (up 17% YoY)•Outperformed market growth across the generics and OTC segment
emE	Mexico	•MXN 123 mn sales in Q1 FY21•#2 (in units) ophthalmic player
	API + GlobalInstitutional	•API revenues grew 17% YoY in Q1 FY21•Continued leadership in anti-TB Institutional business
		PG 10Note:1.IQVIA Jun-202. IQVIA May-203. IQVIA Mar-20

Manufacturing and R&D – Diverse Global Network

R&D – Higher focus on complex products and FTFs

Invested INR 3.6 bn or 10.3% of sales on R&D in Q1FY21 at 7 R&D sites globally

THANK YOU

VISIT WWW.LUPIN.COM FOR DETAILS