Marksans Pharma Ltd. — Interim / Quarterly Report 2021

Feb 8, 2021

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

Q3 & 9MFY21 | 8th February 2021

BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reserved.

Safe Harbor

Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may be affected by factors including, but not limited to, the risks and uncertainties in pharmaceutical research and development; competitive developments; regulatory actions; the extent and duration of the effects of the COVID-19 pandemic; litigation and investigations; business development transactions; economic conditions; and changes in laws and regulations, including health care reform. The company undertakes no duty to update forward-looking statements except as required by applicable law.

2

1 Q3 Highlights 2 Company Overview 3 Business Opportunity by market size 4 Key Focus Areas in FY21 5 5 -years Financial Highlights 6 Leadership Team

3

Management Commentary

Mark Saldanha MA N AGIN G DIRE CTOR A N D C EO

“ I am pleased to share that we delivered another outstanding quarter led by all round growth. We maintained our momentum with a 24.6% revenue growth and operational improvement with a record EBITDA of Rs. 91.1 crore. We remain cautiously positive of continuing the said traction in the forthcoming quarters in the light of gradual reopening of lockdowns in developed markets.”

==> picture [198 x 170] intentionally omitted <==

==> picture [34 x 35] intentionally omitted <==

==> picture [47 x 47] intentionally omitted <==

==> picture [40 x 41] intentionally omitted <==

==> picture [46 x 46] intentionally omitted <==

24.6% 92.6% 99.4% 195.6 (YoY) (YoY) (YoY) (Dec’20) Revenue EBITDA PAT Cash (₹ cr.)

4

5

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 113] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

Financial Highlights

• Q3FY21

• Operating Revenue was ₹ 358.4 cr.; Y-o-Y growth of 24.6%

• EBITDA was ₹ 91.1 cr.; Y-o-Y growth of 92.6%

• EBITDA Margin stood at 25.4% for Q3FY21 as against 16.4% in Q3FY20

• PAT stood at ₹ 58.9 cr., Y-o-Y growth of 99.4%

9MFY21

• Operating Revenue was ₹1,046.0 cr.; Y-o-Y growth of 30.9%

• EBITDA was ₹ 244.2 cr.; Y-o-Y growth of 98.5%

• EBITDA Margin stood at 23.3% for 9MFY21 as against 15.4% in 9MFY20

• PAT stood at ₹ 159.0 cr., Y-o-Y growth of 104%

	Particulars(₹ cr.)	Q3FY21	Q2FY21	Q3FY20	9MFY21	9MFY20
	Operating Revenue	358.4	356.5	287.6	1,046.0	798.9
	Gross Profit	216.9	192.8	147.5	601.3	401.8
	Gross Profit Margin %	60.5%	54.1%	51.3%	57.5%	50.3%
	EBITDA	91.1	83.2	47.3	244.2	123.1
	EBITDA Margin % Finance Costs	25.4% 1.7	23.3% 1.9	16.4% 1.6	23.3% 5.2	15.4% 6.7
	Depreciation & Amortization	8.6	19.0	7.3	34.8	17.0
	Other Income	(3.2)	3.7	0.0	0.7	0.3
	Profit before tax	77.6	65.9	38.3	204.9	99.6
	Taxes	18.7	15.2	8.8	45.9	21.6
	Net Profit	58.9	50.7	29.6	159.0	78.0
	Net Profit Margin %	16.6%	14.1%	10.3%	15.2%	9.8%
	Diluted EPS (INR)	1.42	1.21	0.71	3.83	1.86

6

Strong growth in Revenue & Margins

==> picture [343 x 272] intentionally omitted <==

----- Start of picture text -----

Operating Revenue
(₹ Cr.)
358.4
287.6
Q3FY20 Q3FY21
EBITDA 25.4%
& EBITDA
Margin
16.4%
(₹ Cr.)
47.3 91.1
Q3FY20 Q3FY21
----- End of picture text -----

==> picture [343 x 135] intentionally omitted <==

----- Start of picture text -----

60.5%
Gross Profit
216.9
& Gross
Profit Margin 147.5
(₹ Cr.)
51.3%
Q3FY20 Q3FY21
----- End of picture text -----

==> picture [343 x 135] intentionally omitted <==

----- Start of picture text -----

16.6%
PAT &
PAT Margin 10.3%
(₹ Cr.)
58.9
29.6
Q3FY20 Q3FY21
----- End of picture text -----

7

Improving Financial Ratios

==> picture [689 x 272] intentionally omitted <==

----- Start of picture text -----

ROCE ROE
31.6%
24.5%
17.2% 13.9%
Q3FY20 Q3FY21 Q3FY20 Q3FY21
Net Debt Material Cost 48.7% 39.5%
-(0.1)
to EBITDA (x) ₹ cr. and as 141.4
% of
-(0.6)
Revenue
140.1
Q3FY20 Q3FY21
Q3FY20 Q3FY21
----- End of picture text -----

8

Consistent Performance over Quarters

==> picture [668 x 169] intentionally omitted <==

----- Start of picture text -----

Operating Revenue Gross Profit (₹ cr.) & Gross Profit Margin %
(₹ cr.) 60.5%
55.9% 57.9%
54.1%
287.6 335.3 331.2 356.5 358.4 51.3% 187.5 191.6 192.8 216.9
147.5
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
EBITDA (₹ cr.) & EBITDA Margin % PAT (₹ cr.) & PAT Margin
----- End of picture text -----

==> picture [298 x 83] intentionally omitted <==

----- Start of picture text -----

25.4%
23.3%
20.6% 21.1%
16.4%
83.2 91.1
69.2 70.0
47.3
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
----- End of picture text -----

==> picture [298 x 90] intentionally omitted <==

----- Start of picture text -----

16.6%
14.9%
14.1%
12.7%
10.3%
58.9
49.4 50.7
42.7
29.6
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
----- End of picture text -----

9

Resulting in improving metrices

==> picture [689 x 272] intentionally omitted <==

----- Start of picture text -----

ROCE ROE
24.2% 27.0% 28.9% 31.6% 18.6% 20.8% 22.8% 24.5%
17.2% 13.9%
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
Net Debt to EBIDTA (x) Material Cost (₹ cr.) and as % of Revenue
48.7%
-0.1 44.1% 42.1% 45.9% 39.5%
163.7
-0.4 -0.4 140.1 147.8 139.6 141.4
-0.5
-0.6
Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21
----- End of picture text -----

10

11

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 113] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

Company Structure - Parents & Subsidiary

==> picture [792 x 207] intentionally omitted <==

----- Start of picture text -----

Marksans Pharma (UK) Limited
Distribution of quality
Marksans Holdings Limited generic pharma
Manufacturer of range of Only OTC
162+
----- End of picture text -----

Manufacturer of range of 162+ OTC & Rx products; product licenses; Manufacturer of 50+ products portfolio Manufacturer of OTC Liquids & Rx and OTC liquid Ointments products 450+ OTC/SKU Wholesale products distributor of 50+ products in generic pharma pipeline.

==> picture [151 x 66] intentionally omitted <==

----- Start of picture text -----

Regional sales
development across Asia
(China, Japan, Singapore,
Vietnam, Sri Lanka and South
Korea)
----- End of picture text -----

==> picture [32 x 33] intentionally omitted <==

12

==> picture [792 x 318] intentionally omitted <==

----- Start of picture text -----

REVENUE MIX - BUSINESS MODEL -
Rx
Business Overview OTC 45%
55% 95%
FY20 of revenues comes from
regulated markets
Product Portfolio FY20 (₹ Cr.)
Pain Management 350
Anti-Daibetic 209 Forward-
Cardiovascular System(CVS) 164 GEOGRAPHIC MIX - integrated
Cough & Cold 149 RoW business model
Gastrointestinal 93 4.6% Australia
Central Nervous System(CNS) 76 10.0%
US &
Anti-Allergic 33
North Presence in niche
Miscellaneous 17 America 9MFY21
Anticancer 17 43.1% softgel segment
Anti hair fall (male) 14 Europe, UK
42.3%
Anti-Biotic 13
----- End of picture text -----

BUSINESS DESCRIPTION -

Marksans Pharma Ltd., headquartered at Mumbai, is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulations

Key focus areas lie in

OTC & prescription (Rx) drugs

Company manufactures tablets (plain, enteric coated and film coated), hard & soft gelatin capsule, oral liquids and ointments

Its manufacturing facilities are accredited by

USFDA, UKMHRA and Australian TGA

13

Focussed Business Model

Focus on Regulated Markets

• Marksans commenced business with CRAMS directed at the UK and Australian markets

• Entered the regulated Australian market with the acquisition of Nova in 2005

• Entered the regulated UK market with the acquisition of Bell Sons & Company Ltd. in 2007 and Relonchem Limited in 2008

• Entered the US market in 2011-12 and acquired Time-Cap Laboratories in 2015

Forward Integrated Business Model

• Marksans commenced operations as a formulations manufacturing enterprise

• The Company entered front-end marketing in regulated markets through acquisitions

• The Company was among a few Indian mid-sized companies with frontend marketing capabilities

• The Company invested in a state of- theart R&D facility, strengthening integration

Wider Product Basket

• Marksans commenced its journey with products addressing the pain management segment

• The Company focused on high-growth areas impacted by lifestyle disorders

• The Company launched soft gelatin capsules, a niche category

• The Company now offers products across >10 therapeutic segments

• The Company now has a global presence across 25 countries

14

Forward Integrated Business Model

==> picture [792 x 305] intentionally omitted <==

----- Start of picture text -----

R&D and Manufacturing Supply chain and distribution End Consumers
AU S T R A L I A
Retail chains
U K
Goa, India E U RO P E
N O RT H Pharmacy Stores
A M E RI C A
Southport, UK
C A N A D A
RO W EXPORT
Hospitals
Farmingdale, USA
----- End of picture text -----

15

16

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 113] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

Strategic Focus on Regulated Markets

==> picture [43 x 44] intentionally omitted <==

==> picture [44 x 44] intentionally omitted <==

Global Footprint

Regulatory Approvals

Marksans Pharma entered into strategic tie-ups and acquired key players in major markets to expand its global footprint

These markets are empowered with regulatory approvals which allows the company to sell its products without restrictions

==> picture [44 x 44] intentionally omitted <==

Proprietary Marketing Presence

==> picture [43 x 44] intentionally omitted <==

Higher Margins

Marksans is among a handful of Indian players with a proprietary marketing presence in the world’s largest pharma market such as US, UK and Australia

Company can generate higher margins by eliminating third parties from the value chain

==> picture [44 x 44] intentionally omitted <==

Expansion in Regulated Markets

==> picture [43 x 44] intentionally omitted <==

25+ Countries

Currently, the company markets products in 25+ countries with the UK and the US being the largest

The Company expects to expand in the regulated markets through integrated product development, cGMP compliance, regulatory compliance and utilization of latest technologies

==> picture [43 x 44] intentionally omitted <==

European Countries

Marksans Pharma generates ~95% of its revenues from regulated markets

~95%

Other prominent markets include Australia, New Zealand, Canada and several other European countries

==> picture [105 x 47] intentionally omitted <==

----- Start of picture text -----

USA
----- End of picture text -----

==> picture [105 x 16] intentionally omitted <==

----- Start of picture text -----

Australia
----- End of picture text -----

==> picture [104 x 17] intentionally omitted <==

----- Start of picture text -----

UK
----- End of picture text -----

==> picture [26 x 26] intentionally omitted <==

==> picture [105 x 16] intentionally omitted <==

----- Start of picture text -----

New Zealand
----- End of picture text -----

17

Niche Formulations with few Competitors

==> picture [46 x 47] intentionally omitted <==

DIFFERENTIATED OFFERINGS

Focused on softgel capsules with a view to build a differentiated set of offerings in the crowded generics market

==> picture [31 x 30] intentionally omitted <==

SELECTIVELY TARGETED LARGER MARKETS

Marksans has filed softgel products in all major markets including USA, UK, Europe, Canada, Australia & Russia. Of this, US alone is potentially a USD9 billion market

==> picture [42 x 42] intentionally omitted <==

LIMITED COMPETITION

Given the challenges in preparing Softgel formulations plus other economic, technical and patent constraints there are not many players in this segment

NEW APPROVALS

6 new approvals are awaited in US

==> picture [47 x 47] intentionally omitted <==

HIGH BARRIERS TO ENTRY

High capex requirements and operational costs further restrict entry

==> picture [34 x 33] intentionally omitted <==

MANUFACTURING CAPABILITIES WITH REGULATORY APPROVALS

Marksans’ Goa facility has a capacity to turn out 2.4 billion softgel capsules per annum, and has all the necessary approvals by USFDA, UKMHRA, TGA & other key regulatory authorities

18

19

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 113] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

UK Business & Opportunity by market size

OVERVIEW OF THE MARKET

The UK & EU pharmaceutical market is estimated to grow from ~USD 468 billion in 2016 to ~USD 585 billion by 2030, at a CAGR of 1.6%, driven primarily by a robust life sciences industry.[*]

COMPANY PRESENCE

• One of the top 5 Indian pharma companies in the UK.

• UK business is driven by its two subsidiaries, Relonchem and Bell.

• Bell has a strong OTC portfolio with 450+ OTC/SKU products and 50+ products in pipeline.

OUTLOOK

• Company has 50+ products in the pipeline in different stages to cater to UK market.

• Company is awaiting approval for ~20 MAs in the UK market.

• Relonchem’s portfolio comprises 162 MA’s.

• Source: Cefic.org

==> picture [551 x 145] intentionally omitted <==

----- Start of picture text -----

442.4 22.6%
(₹ Cr.)
Y-o-Y Growth
The UK
Total Revenue
(9MFY21)
----- End of picture text -----

==> picture [41 x 40] intentionally omitted <==

42.3% Contribution to Total Revenues

20

Expansion Strategy for UK

• Wide UK customer base and 100% reach within the distribution channel. • Broad and diversified range of product portfolio with well recognized brands. • Captured a large share of OTC and generic markets. REVENUE FY20 • Working on receiving USFDA approval for Southport facility to commence exports to USA. • Increase in partnership with major national distributors, pharmacies, retailers and chemist wholesalers. ORGANIC GROWTH • Developing a range of narcotic & dermatology products • Range of oral solid products under-development to increase market share in generic and OTC markets • Investment in manufacturing facility to develop oral liquid solutions NEW PRODUCTS IN PIPELINE • For rapid expansion into various therapy areas and other markets including UK and Europe, the company plans to acquire product licenses. INORGANIC GROWTH • Sustainable revenue growth • Consistently delivering on profit margins • Focus towards Europe, USA and other export destinations • One of the key OTC product supplier and private label manufacturer in the industry REVENUE FY25 21

US Business & Opportunity by market size

OVERVIEW OF THE MARKET

The US holds over 30-40% of the global pharmaceutical market. Nominal spend on medicine was USD 511 billion in 2019, and is expected to grow at projected CAGR of 4-5% over near term, due to favorable government programs and policies.

COMPANY PRESENCE

• In June 2015, Marksans acquired Time-Cap Labs which enabled Marksans to expand its offering in US market.

• 50+ products in various therapy area segments.

• Proprietary marketing presence with 100% integration of Time-Cap Laboratories.

OUTLOOK

• Strengthen company’s US operations in the coming years

• Add 4-5 new products to its portfolio during the year under review

• Strong distribution channel marketing for both OTC and Rx products.

*Source: PwC

==> picture [44 x 51] intentionally omitted <==

==> picture [41 x 40] intentionally omitted <==

==> picture [41 x 40] intentionally omitted <==

450.5 45.3% 43.1% (₹ Cr.) Contribution to Total Y-o-Y Growth The United States Total Revenue Revenues (9MFY21)

22

Expansion Strategy for US

	REVENUE FY20 ORGANIC GROWTH NEW PRODUCTS IN PIPELINE INORGANIC GROWTH REVENUE FY25	• 50+ products in various therapy area segments • Positioned in the niche soft gel category • Strong distribution channel marketing for both OTC and RX products • 23 ANDAs filled till date • Expanding presence in other North American region • Increase in ANDA fillings for soft gel dosage • Partnership with leading retailers • Exploiting untapped potential of drugs going off patent • 25 products identified with a focus on soft gels and OTC products • 15 products in R&D • Planning to acquire ANDAs to cut short development time • Increasing capacity in India and US facility to meet future requirements • Expected to grow rapidly to achieve a high growth platform in FY25

23

Australia Region Business & Opportunity by market size

OVERVIEW OF THE MARKET

Australia’s pharmaceutical market is set to rise from $30.5 billion in 2018 to US$ 40.1 billion by 2024 registering a CAGR of 5.1%[*]

COMPANY PRESENCE

• Marksans carries out business operations in Australia and New Zealand through its subsidiary Nova Pharmaceuticals.

OUTLOOK

• Australia and New Zealand will continue to remain focus markets for the Company.

• Nova is one of the leading generics and private label suppliers in Australia.

• Tie-ups with topmost retailers & pharmacies in Australia, like Woolworths Ltd., Coles Mayer Ltd., Aldis, Metcash and Fauldings.

• Presence in key therapeutic areas.

*Source: IBIS 2018

==> picture [162 x 86] intentionally omitted <==

Australia & New Zealand (9MFY21)

==> picture [44 x 51] intentionally omitted <==

==> picture [41 x 40] intentionally omitted <==

==> picture [62 x 17] intentionally omitted <==

----- Start of picture text -----

11.8%
----- End of picture text -----

104.2 11.8% (₹ in Cr.) Y-o-Y Growth Total Revenue

==> picture [41 x 40] intentionally omitted <==

==> picture [117 x 57] intentionally omitted <==

----- Start of picture text -----

10.0%
Contribution to Total
Revenues
----- End of picture text -----

24

Emerging Market Business & Opportunity by market size

OVERVIEW OF THE MARKET

ROW includes markets of South East Asia, MENA, Russian Federation & Africa

COMPANY PRESENCE

• Presence in emerging markets such as South East Asia, MENA, LATAM, CIS and Africa

OUTLOOK

• In process of launching new products and obtaining product registration for ~175 developed products in emerging markets.

• Targeting four major clusters such as South East Asia, Russia & CIS, Middle East and Africa

• In these countries, specific countries like Kenya, Ukraine, Sri Lanka, Cambodia and Myanmar are targeted

==> picture [758 x 145] intentionally omitted <==

----- Start of picture text -----

49.0 39.0% 4.7%
(₹ in Cr.) Contribution to Total
Y-o-Y Growth
Rest of the World
Total Revenue Revenues
(9MFY21)
----- End of picture text -----

25

Manufacturing Capabilities

Goa, India
	•	Manufacturesoral solid tablets,	CAPACIT Y	ACCREDITATI ONS
	•	andsoft and hard gelatin capsules One of the biggest manufacturing	2.4 bnsoftgel and hard gelatin capsules per annum
		facility in Asia	6 bnsolid tablets per
			annum
Southport, UK
	•	Manufacturesnon-sterile liquids,	CAPACIT Y	ACCREDITATI ONS
	•	ointmentsandpowder sachets Supplies toUK, West Africa & Middle East	2 bnbottles per annum 1 bntubes per annum
			1 bnsachets per annum

==> picture [17 x 17] intentionally omitted <==

Farmingdale, USA

==> picture [131 x 79] intentionally omitted <==

• Manufactures hard gels, tablets CAPACIT Y and capsules 6 bn tablets and hard

• • Spread across an area of 7000 sq. capsules per annum

CAPACIT Y ACCREDITATI ONS

==> picture [61 x 39] intentionally omitted <==

m

• "Made in the USA” product offering

26

R&D and Product Launches Highlights

==> picture [242 x 151] intentionally omitted <==

----- Start of picture text -----

R&D Expenditure (₹ in Cr.)
1.5% 1.5%
15.7
14.6 0.7%
0.6%
0.6%
8.3
4.5 5.3
FY17 FY18 FY19 FY20 9MFY21
R&D Expenditure % of sales
----- End of picture text -----

RECENT KEY PRODUCT L AUNCHES

Brand	Composition	Therapy Segment	Market
IMURAN (Q3FY21)	AZATHIOPRINE 50 MG	Immunosuppressant	UK
TOFRANIL (Q3FY21)	IMIPRAMINE 25 MG	Central Nervous System	UK
LORATIDINE SGC (Q3FY21)	CLARITIN	Antihisyamine	Australia
RISPERDAL	Risperidone	Central Nervous System	UK
KEPPRA	Levetiracetram – 750mg, 1000mg	Central Nervous System	UK
ZOLOFT	Sertraline – 100mg	Central Nervous System	UK
ADVIL MINI	Ibuprofen(Min) SGC – 200mg	Pain Management	UK
PANADOL RAPID	Paracetamol (Rapid) 650mg	Pain Management	Australia
MUCINEX	Mucinex Fast / Sinus Max	Cough & Cold	USA
VICKS DQ/NQ	Day quil / Nightquil SGC	Cough & Cold	USA
ALKASELTZER	Alka Seltzer Plus	Gastrointestinal	USA

Continued focus on R&D investments leading to a robust pipeline of new developed & pipeline products

Plans to enhance portfolio with addition of 12-13 products every year

Focus is on developing soft gels and different delivery system like extended release, liquid, OTC products and ointments

R&D Products 4 Centres 50+ Scientists 50+ in Pipeline

Dossiers 350+ filed

Approved Filed 300 ANDAs/MAs 25+ ANDAs/MAs

27

28

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 113] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

Key Focus Areas

1

2

3

==> picture [50 x 50] intentionally omitted <==

----- Start of picture text -----

4
----- End of picture text -----

STRATEGY

Expansion

Expansion of current product portfolio in regulated market

Product Launch

New product development and launch

Inorganic Expansion

Inorganic expansion to enhance manufacturing capabilities and product portfolio

Backward Integration Backward integration into API manufacturing

GROWTH LEVERS

The company generates ~95% of its revenue from regulated markets and expects to further expand in these markets through continued push of existing products in regulated and other related geographies

The company has prepared a pipeline of new products for the UK and USA markets that are expected to drive revenue growth by FY25

The company has plans to acquire manufacturing assets in India as well as marketing licenses in Europe and USA to expand business operations in regulated markets

The company has a robust forward integrated business model and plans to backward integrate into API manufacturing (for captive consumption thereby having presence in the entire value chain)

29

30

==> picture [792 x 112] intentionally omitted <==

==> picture [792 x 113] intentionally omitted <==

==> picture [792 x 112] intentionally omitted <==

Financial Highlights

Operating Revenue (₹ cr.)

==> picture [298 x 78] intentionally omitted <==

----- Start of picture text -----

912.7 1000.1 1134.2 1046.0
767.2
FY17 FY18 FY19 FY20 9MFY21
----- End of picture text -----

EBITDA (₹ cr.) & EBITDA Margin

==> picture [298 x 84] intentionally omitted <==

----- Start of picture text -----

23.3%
17.0%
13.2%
8.6%
244.2
5.8% 192.3
132.1
44.7 78.4
FY17 FY18 FY19 FY20 9MFY21
----- End of picture text -----

Gross Profit (₹ cr.) & Gross Profit Margin

==> picture [298 x 80] intentionally omitted <==

----- Start of picture text -----

57.5%
50.2% 52.0%
40.2% 42.7%
589.3 601.3
502.1
389.6
308.4
FY17 FY18 FY19 FY20 9MFY21
----- End of picture text -----

PAT (₹ cr.) & PAT Margin

==> picture [298 x 84] intentionally omitted <==

----- Start of picture text -----

15.2%
10.6%
8.0%
159.0
3.9% 120.8
1.5% 80.4
11.3 35.8
FY17 FY18 FY19 FY20 9MFY21
----- End of picture text -----

31

Financial Ratios

==> picture [689 x 272] intentionally omitted <==

----- Start of picture text -----

ROE ROCE
31.6%
24.5%
2.6% 14.6% 18.6% 3.2% 19.1% 24.5%
7.5% 10.4%
FY17 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21
Net Debt to EBITDA (X) Material Cost and as % of Revenue
59.8% 57.3%
49.8% 48.0%
42.5%
1.9
1.0 0.5 458.8 523.1 498.0 544.9 444.7
-0.6
-0.4
FY17 FY18 FY19 FY20 9MFY2 FY17 FY18 FY19 FY20 9MFY21
----- End of picture text -----

32

Segmental Mix

Therapeutic Segment-Wise YoY

==> picture [354 x 302] intentionally omitted <==

----- Start of picture text -----

100.0%
6.1% 10.2% 11.7% 6.8% 8.2%
90.0% 5.0% 7.5%
8.3%
8.6%
8.6%
80.0% 16.3%
12.0% 8.8% 20.6% 18.4%
70.0% 4.9%
5.2%
11.7%
60.0% 14.1% 6.3% 6.7%
14.2%
12.4% 13.8% 13.1%
50.0%
12.5%
14.6%
40.0% 15.4% 15.4% 14.5%
30.0%
20.0% 41.1%
35.1%
31.4% 29.6% 30.8%
10.0%
0.0%
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Pain management Cardiovascular System (CVS) Cough and cold
Central Nervous System (CNS) Anti-diabetic Gastrointestinal
Others
----- End of picture text -----

Segment Revenue YoY

==> picture [343 x 236] intentionally omitted <==

----- Start of picture text -----

100.0%
90.0%
80.0%
44.1%
51.0%
70.0% 55.2% 58.0% 54.7%
60.0%
50.0%
40.0%
30.0%
55.9%
49.0%
20.0% 44.8% 42.0% 45.3%
10.0%
0.0%
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
RX OTC
----- End of picture text -----

33

Global Reach Enables Reduction in Country Risk

Company’s business is classified under 4 heads:

1 North America/ US generics

2 Europe/UK generics

3 Australia and New Zealand

4 Rest of the world (RoW) generics (CIS, Middle Eastern, African and South-East Asian countries)

R E V E N UE M I X

==> picture [527 x 293] intentionally omitted <==

----- Start of picture text -----

3.0%
5.6% 4.3% 6.0% 4.2%
10.9%
11.9% 13.6% 11.9% 12.4%
40.7%
36.1% 38.5%
41.0%
45.1%
46.4% 45.5% 45.0%
41.1%
37.0%
FY16 FY17 FY18 FY19 FY20
Europe, UK US, North America Australia, NZ RoW
----- End of picture text -----

34

Leadership Team

==> picture [108 x 80] intentionally omitted <==

MR. MARK SALDANHA

Ma nag ing Director & C EO

Mr. Saldanha is the founder promoter of the company. Prior to Marksans, he had been associated with Glenmark Pharmaceuticals Ltd. as a Whole Time Director. He is well versed with the overall management of the company and has vast experience across the marketing, production and finance functions.

==> picture [108 x 79] intentionally omitted <==

MR. VARDDHMAN JAIN

Whole- Time Director.

Mr. V.V. Jain, M. Pharm (Pharmaceuticals) has 25 years experience in Pharmaceutical industry with various multinational organizations. He is specialized in the area of manufacturing, quality R&D, compliance & regulatory affairs both for API and FDF manufacturing. Mr. Jain has successfully handled several regulatory inspection including USFDA, MHRA, PMDA Japan and WHO & also built sound Internal processes to clear the said tests.

==> picture [91 x 84] intentionally omitted <==

MR. SATHISH KUMAR

MD – M arksa ns Pharma UK Ltd .

Mr. Sathish Kumar is Managing Director of Marksans Pharma (UK) Ltd. & manages affairs of Bells & Sons (Druggists) Ltd and Relonchecm Ltd, both step down operating subsidiaries of Marksans Pharma (UK) Ltd. He has done masters in pharmacy and has over 20 years of experience in Pharma industry working across Production, Planning and inventory Management, Formulation development, Regulatory, Technical, Commercial, Sales and Business development.

==> picture [94 x 85] intentionally omitted <==

MR. DAVID MOHAMMED

MD- Pharmaceuticals Australasia pty ltd

Mr. Mohammed held the positions of the Managing Director Australasia and Marketing Director Asia, Africa and Australasia at Valeant Pharmaceuticals for over 7 years, prior to Nova Pharmaceuticals.

==> picture [92 x 85] intentionally omitted <==

MR. JITENDRA M SHARMA

C hief Fina ncial Off icer

Mr. Sharma is a qualified chartered accountant and cost accountant with over 20 years experience in financial functions including treasury and forex management. He has expertise in the areas of costing, fund raising and internal control systems. He is a director in MPL’s subsidiaries, Marksans Pharma (UK) Ltd, Marksans Pharma Inc. (USA), Nova Pharmaceuticals, Australia and Relonchem, UK. 35

Investment Rationale

==> picture [43 x 42] intentionally omitted <==

Widening Product Portfolio

Company is widening its products portfolio in the complex and high-margin generics segment.

==> picture [43 x 42] intentionally omitted <==

Engaging R&D Team

Marksans is among a few mid and smallsized pharma companies to have created an integrated business model by engaging R&D team in creating and filing dossiers across major markets.

==> picture [42 x 42] intentionally omitted <==

Key Markets

The US, the UK and Australia are the key Marksans’ markets with all of them being now empowered with all regulatory approvals.

==> picture [42 x 42] intentionally omitted <==

New R&D Center in Navi Mumbai

The new state-of-the-art R&D center in Navi Mumbai (Nerul) is focused on formulations and novel drug delivery systems.

==> picture [43 x 42] intentionally omitted <==

Amongst Largest Pharma Market

Marksans is among a handful of Indian players with a proprietary marketing presence in the US which is world’s largest pharma market.

==> picture [43 x 42] intentionally omitted <==

Deleveraged the Balance Sheet

Company has repaid long-term loans, deleveraged the Balance Sheet and reinvested the surplus in R&D, capacity creation and brownfield expansion.

36

Investment Rationale

1

2

3

4

Sustainable business model with strategic focus on regulated markets with markets of USA, UK, Australia and New Zealand contributing to c. 96% of total revenues.

USFDA, UKMHRA, TGA-Australia accredited and GMP compliant facilities across its key regions providing for a low-cost manufacturing base.

Experienced and professional management team with strong line of operations.

Company has ability to pursue value-accretive and prudent M&A opportunities and has a successful track record of integrating acquisitions.

5

6

7

==> picture [49 x 49] intentionally omitted <==

----- Start of picture text -----

8
----- End of picture text -----

Forward integrated business model with presence across the pharma value chain including in-house R&D centers, owned and outsourced manufacturing set up and widespread supply chain and distribution set up through subsidiaries in USA, UK and Australia.

Wide range of product offering with and one of the most active Indian firms focused in Soft gel.

Continued focus on R&D investments leading to a robust pipeline of new developed and under development products to add onto its existing 300+ approved ANDAs/Mas.

Delivering robust and consistent financial performance with FY20 revenue at rowing 13% Y-o-Y and FY20 EBITDA growing 41% Y-o-Y and a net cash balance sheet.

37

ESG Philosophy

==> picture [46 x 47] intentionally omitted <==

ENVIRONMENTAL

• Efficient use of resources to minimize the waster generation.

• Priority to energy conservation measures including regular review of energy generation and consumption and effective control on utilization of energy.

• Committed to protect environment and ecological balance also maintaining quality of soil, air and water.

==> picture [46 x 47] intentionally omitted <==

SOCIAL

• Company is actively contributing to the social and economic development and build a better sustainable way of life for weaker sections of society.

• Ensures social and economic dignity and freedom regardless of nationality, gender, race, economic status or religion to all its talents at all level.

• Committed to improving the quality of life of the local community and society at large.

==> picture [47 x 47] intentionally omitted <==

GOVERNANCE

• Committed to good corporate governance to achieve long term corporate goals and to enhance shareholders value.

• Highly competent and diverse board of directors.

• Highest degree of transparency, responsibility and delegation in all facets.

• Internal Control & Policy for managing conflict of interest and code of conduct.

38

ESG at Marksans

HELPING WOMEN & CHILD DEVELOPMENT

Marksans along with Ministry of Health, Government of Goa is helping in Women and child development, professionalizing Anganwadis and national nutrition mission in Goa.

PROVIDE FIRE

EXTINGUISHING EQUIPMENT'S

Company has provided fire extinguishing equipment to the fire department, Government of Goa.

PARTNER WITH “CHILD LIFE INDIA FOUNDATION”

Partnering with “Cherish Life India Foundation” we provided medical treatment to under privileged society suffering from cancer and other blood disorders.

DISTRIBUTED FREE MEDICINES Marksans & “Sri Sathya Sai Mobile Medicare Project” has distributed Free medicines to the TO BACKWARD SEGMENT needy and backward segment of society.

39

Corporate Governance Philosophy

We at	Marksans Pharma Ltd adhere to following principles :
1	Conducting Business in Ethical, Transparent and Accountable manner.
2	Producing goods which have a sustainable life cycle.
3	Adherence to ethical working standards to ensure the wellbeing of all
	employee.
4	Effective management and distribution of wealth.
5	Maintain a strong track record of withholding & promotion of Human rights.
6	Tracing Emission/Waste and maintain them below permissible levels
7	Application of Best management practices.
8	Business continues to create value for customer and consumer in a responsible manner.

40

Contact Us

INVESTOR RELATIONS TEAM AT MARKSANS PHARMA

CORPORATE OFFICE

Jitendra Sharma

(CFO)

Marksans Pharma Ltd Tel: +91 022 40012000 jitendra@marksanspharma.co m

Ravi Udeshi

(Christensen Investor Relations)

Christensen Investor Relations Tel : +91 22 4215 0210 rudeshi@christensenir.com

11[th] Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Mumbai – 400 053, Maharashtra - India

© 2020 Marksans Pharma Limited, All Rights Reserved.

“Marksans Pharma” and The Marksans Pharma Logo are trademarks of Marksans Pharma Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.

41