Lupin Ltd — Investor Presentation 2021

Oct 28, 2021

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October 28, 2021

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: Q2 FY2022 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 Q2 FY2022 Investor Presentation.

Kindly confirm receipt.

Thanking you,

Yours faithfully, For LUPIN LIMITED

Rajvardhan Vishnu Satam

Digitally signed by Rajvardhan Vishnu Satam DN: c=IN, o=Personal, 2.5.4.20=e8a002ede68da3b7e41e01d21c2b9062761a29a5f004 91762a5ac549cb034cae, postalCode=400104, st=Maharashtra, serialNumber=df8ebe60a88c796663c738ea25bfa0b475d195f7 26cdb67a2ff09c4242771b2a, cn=Rajvardhan Vishnu Satam Date: 2021.10.28 20:16:38 +05'30'

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

Encl.: a/a.

Registered Office: 3[rd] Floor, Kalpataru Inspire, Off W. E. Highway, Santacruz (East), Mumbai - 400 055 India. Tel: (91-22) 6640 2323. Corporate Identity Number: L24100MH1983PLC029442 www.lupin.com

www.lupin.com

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Investor Presentation Q2 FY2022

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October 28, 2021

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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.

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cost
include,
and
a
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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.

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Lupin – Awards and Accolades

• Vinita Gupta named among Most Powerful Women in Business in India – #7 by Fortune India

• India Pharma Leader Award - India Pharma 2020 and India Medical Device 2020 conference organized by FICCI and the Ministry of Chemicals and Fertilizers, GOI

• Lupin ranked No.1 in the Biotech and Pharma , and amongst Top 50 large organisations in the list of top 100 – Great Place to Work[TM] for 2019-20

• Lupin awarded ‘Masters of Risk in Pharma & Healthcare’ at India Risk Management Awards 7[th] Edition by CNBC-TV18

• Lupin named ‘Best Researcher of the Year’ at the ETHealthworld.com India Pharmaworld Awards

• LHWRF won Greentech CSR India Award

• Greentech Energy Conservation Awards 2021 for Outstanding Achievement in Energy Conservation

• Lupin’s Ankleshwar Facility won the Gold Award - American Society for Quality; Gold Award for Improvement Project in Manufacturing and Operation by CII, Gold Award at the National Award for Manufacturing Competitiveness Assessment conducted by International Research Institute of Management and Gold Award in 13[th] Cycle of QCI - D.L. Shah Quality Awards, Gold Award for Consistency at Operational Excellence at the National Awards for Manufacturing Competitiveness 2019-20

• Lupin’s Goa Facility won the Gold Category Award in 13[th] Cycle of QCI-D.L. Shah Quality Awards

• 3 sites rated 7 by ISRS (International Sustainability Rating System), the highest score in the pharma sector globally

• In house Taxation Team (Direct and Indirect) won FOUR awards at the ITR Asia-Pacific Tax Awards 2021 by the International Tax Review

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• Sreeji Gopinathan in CIO Power List 2020 - RPA Icon from Core media

• Won 5 INDIASTAR Awards for Excellence in Packaging - 2020

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Q2 FY2022 Snapshot

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Sales (INR mn, YoY Growth)
India, North America,
15,435, 16% 14,291, 2%
Total
40,034, 6%
API,
2,678, (28%)
Growth Markets,
EMEA,
3,484, 7% 3,490, 20%
EBITDA [1] R&D
INR 6,285 mn INR 3,300 mn
15.7% 8.2%
of sales of sales
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Mr. Nilesh.D.Gupta Managing Director Lupin Limited

“Our sustained efforts to drive growth have helped us cross INR 4,000 cr. sales this quarter. We remain focused on ramping up our revenues in the U.S. while continuing our robust growth in India. With the restructuring in the U.S., we have significantly scaled down the Specialty burn. We remain committed to our journey of margin improvement through sustainable growth and cost optimization, while ensuring the safety of our people and the highest standards of compliance”

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Important developments Commercial

• Sequential uptake in US generics business driven by ramp up in Albuterol and Brovana AG^

• India business continues to be robust (up ~16% YoY)

• 3 launches in the US, 5 brands launched in India

• Completed restructuring of the Specialty business in the US

Pipeline

• 4 filings with the US FDA incl. an ophthalmic suspension

• Submitted response to the CRL for gSpiriva

• Continue to make progress on other key filings across inhalation, complex injectable, biosimilars

Regulatory

• Received seven observations from USFDA post inspection of the Goa facility. Actively addressing cited observations

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Note: ^ Authorized Generic; 1: EBITDA for Q2 FY2022 includes an adverse impact of ~80bps for one-time costs related to US Specialty Restructuring

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Manufacturing and R&D – Diverse Global Network
Global Commercial Presence
100 23 7
Countries where Countries with Countries with
products are sold marketing offices subsidiaries
15 7
R&D Sites
Manufacturing Sites
◼
◼ 444 US ANDAs; 292 approved
12 USFDA inspected sites
◼
◼ 51 pending US First to Files
30 bn+ extended unit capacity
◼
◼ Secured a total of 36 patents in
Range of capabilities from API to
formulations including tablets, FY21
capsules, liquids, injectables,
dermatological, ophthalmics,
inhalation
5
10
RESEARCH
OPERATIONS
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Financial Results Review

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P&L Highlights- Q2 FY 2022

Amount in INR mn	Q2 FY22	% of sales	Q1 FY22	% of sales	QoQ growth	Q2 FY21	% of sales	YoY growth
Sales	40,034	100.0%	42,374	100.0%	- 5.5%*	37,818	100.0%	5.9%
Other operating income	879	2.2%	328	0.8%	168.0%	532	1.4%	65.2%
Total Revenue from operations	40,913	102.2%	42,702	100.8%	- 4.2%	38,350	101.4%	6.7%
Gross profit (excl. other operating income)1	23,769	59.4%	27,094	63.9%*	- 12.3%	24,001	63.5%	- 1.0%
EBITDA	6,285	15.7%	9,926	23.4%*	- 36.7%*	6,061	16.0%	3.7%
Adj. Profit Before Tax (PBT)	3,825	9.6%	7,503	17.7%*	- 49.0%*	3,598	9.5%	6.3%
Exceptional item2	25,873		-			-
Profit Before Tax (PBT)	(22,048)	- 55.1%	7,503	17.7%*	NA	3,598	9.5%	NA
Profit after Tax (PAT)	(20,949)	- 52.3%	5,480	12.9%	NA	2,131	5.6%	NA
Profit/(Loss) for the period	(20,980)	- 52.4%	5,425	12.8%	NA	2,110	5.6%	NA

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• *Adjusted for NCE Licensing income of INR 3,734 mn in Q1, Gross Margin in Q1 FY2022 would be 60.5% to sales, EBITDA Margin would be 16.0% to sales and PBT Margin would be 9.8% to sales. Further, on an adjusted basis, sales growth in Q2 FY2022 is 3.6% and EBITDA as well as Adjusted PBT Growth is 1.5%

• Royalty/Profit Share Expenses on certain in-licensed/partnered products have been reclassified to Material Costs from Manufacturing and Other expenses starting Q1 FY2022. On a comparable basis, the Gross Margin adjusted for such change would be 62.7% of sales in Q2 FY2021. Manufacturing & Other Expenses adjusted for this change related to Royalty/Profit Share Expenses would be 29.1% of sales in Q2 FY2021.

• Includes Provision of INR 18,796 mn [including INR 387 mn towards litigation and settlement related expenses] under Glumetza class actions towards business compensation expense based on the agreement to settle the dispute with two plaintiff groups; Impairment Expense of INR 7,077 mn for impairment of Solosec® IP

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Q2FY22 YoY QoQ 2.2% 7.2%

36%

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North America

Consolidating our position in the US[1]

Gaining momentum

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US quarterly sales ($ mn) #3 #3 #3 #3 #3
188 195 140 #4 4.5
184 4
180 120
172 129 3.5
100 123 121 120
109 3
80 2.5
60 83 2
40 51 65 63 53 55 1.51
20 45
0.5
0 0
2016-17 2017-18 2018-19 2019-20 2020-21 Q1 FY22
Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 No. of Products (mkt leader) Top 3 by mkt share US Rx pharma ranking
US Generics: Established Leader
•
Look to continue to gain market share (US
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• Look to continue to gain market share (US Generics), including further ramp-up of Albuterol

rd 3

152

202

• Specialty restructuring completed in Q2, incl. recognition of associated one-time costs

Largest in the Filings pending DMF filings US approval (cumulative) (by prescriptions[1] ) (cumulative)

• 51 FTFs incl. 20 exclusive FTF await USFDA approval

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Note:

1. IQVIA Sep-21

Q2FY22 YoY QoQ 39% % 15.9% 5.7%

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India

India business continues to be robust

India quarterly Sales (INR bn)

16.4 15.4 13.3 13.7 12.9 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Strong brand portfolio

Note: 3 brands in Top 100 10 brands in Top 300	BRANDS	RANK (MAT Sep’21)
	GLUCONORM-G	41
	HUMINSULIN	85
	BUDAMATE	99
	CIDMUS GIBTULIO ONDERO IVABRAD TONACT AJADUO RABLET - D	168 183 200 231 234 282 297

Consistently outpacing chronic market growth

5 Year CAGR % Lupin Rank1	5 Year CAGR % Lupin Rank1	5 Year CAGR % Lupin Rank1	5 Year CAGR % Lupin Rank1	5 Year CAGR % Lupin Rank1
Therapy	Market	Lupin	MAT Sep-16	MAT Sep-21
Acute	9%	5%	13	15
Chronic	12%	15%	5	4
Cardiac	11%	12%	3	3
Anti-diabetics	12%	20%	5	3
Respiratory	10%	14%	4	2

• 6[th] rank in the IPM[1]

• 65% Chronic contribution[1] ; Leadership across cardiac, diabetes, respiratory segments

• For Lupin, Respiratory, Pain, Gynae segments registered strong growth ( >20%) in Q2

• 1 brand launched in Anti-diabetic therapy, 1 brand in Urology, 1 brand in VMS and 2 brands launched in Cardiac segment in Q2

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1. IQVIA Sep-21

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Other Markets

• Germany: EUR 8 mn sales in Q2 FY22

• EU5 • UK: Launched Luforbec® 100/6 µg pMDI, first branded generic alternative to Fostair®, indicated for treatment of Asthma & COPD.

• • Market leader in CVS space

• South Africa • ZAR 357 mn sales in Q2 FY22 (grew 17% YoY)​

• • 4[th] largest generics player[1]

• Australia • AUD 18.3 mn sales in Q2 FY22 (up 27% YoY)

• • BRL 48 mn sales in Q2 FY22

• Brazil • Outperformed market growth (in terms of value) across the OTC segment

• • MXN 172 mn sales in Q2 FY22 (growth of 11% YoY)

• Mexico • Market Leader in Ophthalmology (#2 in units) with a national footprint

• • API revenues down 28% YoY on lower offtake of anti-infectives

• API + Global • Some countries postponed their tenders for procurement of both TB and ARV products

• Institutional by a year

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1. IQVIA Midas Sales Audit June-21

Note:

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Key Financial Metrics

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R&D (INR mn) Capex (INR mn)
3,843
3,737
1,905
3,479
3,427
3,300 1,396 1,451
1,182
1,057
Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22
R&D (% of Sales) Net debt/ Equity
0.13
10.2%
8.9% 9.1% 8.8% 0.10
8.2%
0.05
(0.01)
(0.02)
Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22
Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22
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THANK YOU
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Registered Office

Lupin Limited,

3[rd] Floor, Kalpataru Inspire, Off. Western Expressway Highway, Santacruz (East), Mumbai 400 055, India. Phone: +91 22 6640 2323 | Fax: +91 22 6640 2051 | www.lupin.com

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