Marksans Pharma Ltd. — Investor Presentation 2021

May 31, 2021

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Investor Presentation
Q4 & FY21 | 31st May 2021
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BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2019 – Marksans Pharma Limited, All Rights Reserved.

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Safe Harbor

Certain statements in this our future are forward which involve a presentation concerning growth prospects looking statements, 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.

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Contents
1 Q4 & FY21 Highlights
2 5 Year Performance Review
3 Company Overview
4 Business & Opportunity by Market Size
5 Key Focus Areas
6 Leadership Team
7 Investment Rationale
8 ESG & Corporate Governance
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Management Commentary

Mark Saldanha

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MANAG ING DIRECTOR AND CEO
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“ I am pleased to share that our all-round growth of 21.3% in FY21 was on the back of wallet share with addition of new and new increasing existing customers, logos product launches. Our investments in the US business is bearing fruit with EBITDA margin to 24.7% about as well as an expansion brought by operating leverage optimised product mix. We will continue to invest in our businesses to make ourselves future ready while remaining cautiously optimistic of continuing the growth traction in coming ” quarters.

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1,376.2 339.6 238.5 212.3
+ 21.3 % + 76.6 % + 97.5 % (Mar’21)
(YoY) (YoY) (YoY) Cash (₹ cr.)
4
FY21 Revenue (₹ cr.) FY21 EBITDA (₹ cr.) FY21 PAT (₹ cr.)
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Financial Highlights

Q4FY21

• Operating Revenue was ₹ 330.2 cr. as compared to ₹ 335.3 Cr. in Q4 FY20 due to deferment of certain sales in lockdown to next quarter

• EBITDA was ₹ 95.4 cr.; Y-o-Y growth of 37.8%

• EBITDA Margin stood at 28.9% for Q4FY21 as against 20.6% in Q4FY20

• PAT stood at ₹ 79.5 cr., Y-o-Y growth of 86.0%

FY21

• Operating Revenue increased by 21.3% to ₹ 1,376.2 cr. due to greater market depth in existing products coupled with new launches

Business Highlights- FY21

• Continuing its expansion strategy in existing markets, Marksans launched 5 new products in UK / Europe markets

• Capacity expansion at US facility completed with addition of packaging and manufacturing lines

• Product Pipeline:

• Plan to file 12 ANDAs in US, >20 MA’s in UK/ Australia

• Plan to file 7 DMFs over next 2 years for API business

o

     - Plan to launch 3-4 products in FY22 in US

  -

  - ANDA / MA acquisition to continue in US & EU for shorter time to market

  - Marksans plans to incur capex of ₹ 200.0 Cr. over 2 years for both formulations and APIs

• EBITDA increased by 76.6% to ₹ 339.6 cr.

• EBITDA Margin increased stood at 24.7% for FY21 as against 17.0% in FY20 due to improved product mix and increased operating leverage

• PAT stood at ₹ 238.5 cr., Y-o-Y growth of 97.5%

• Generated Cash from Operations and Free Cash Flow of ₹ 178.7 crores and ₹ 132.3 crores respectively

• Working Capital cycle increase on account of additional inventory to avoid any non-fulfilment of sales in the lockdown and also new product launches

• Board instituted Dividend Policy:

• 10-25% of consolidated free cashflow to be distributed as Dividend

• Higher payout in special circumstances

• Balance between resource conservation & shareholder reward

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Financial Highlights – Profit and Loss Statement

Particulars (₹ cr.)	Q4FY21	Q3FY21	Q4FY20	YoY	FY21	FY20	YoY
Operating Revenue	330.2&	358.4	335.3	-1.5%&	1,376.2	1,134.2	21.3%
Gross Profit	203.5	216.9	187.5	8.5%	781.1	566.4	37.9%
Gross Profit Margin %	61.6%	60.5%	55.9%	570 bps	56.8%	49.9%	690 bps
EBITDA	95.4	91.1	69.2	37.8%	339.6	192.3	76.6%
EBITDA Margin %	28.9%	25.4%	20.6%	830 bps	24.7%	17.0%	770 bps
Finance Costs	2.8	1.7	2.0	39.0%	8.0	8.7	-8.7%
Depreciation & Amortization	1.3	8.6	9.6	-86.2%	36.2	26.7	35.6%
Other Income	6.0	-3.2	0.0	NA	6.7	0.3	1940.9%
Profit before tax	97.2	77.6	57.6	68.9%	302.2	157.2	92.2%
Taxes	17.7	18.7	14.8	19.6%	63.6	36.4	74.7%
Net Profit	79.5	58.9	42.7	86.0%	238.5	120.8	97.5%
Net Profit Margin %	23.6%	16.6%	12.7%	1090 bps	17.2%	10.6%	660 bps
Diluted EPS (INR)	1.9	1.4	1.0	92.9%	5.8	2.9	101.5%

& Revenue impact on account of shipment of goods due to lockdown deferred to next quarter

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Consistent Performance over Quarters

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Operating Revenue
(₹ cr.)
&
356.5 358.4
335.3 331.2 330.2
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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EBITDA (₹ cr.) & EBITDA Margin %
28.9%
25.4%
23.3%
20.6% 21.1%
91.1 95.4
83.2
69.2 70.0
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Gross Profit (₹ cr.) & Gross Profit Margin %
61.6%
60.5%
57.9%
55.9%
54.1% 216.9
203.5
187.5 191.6
192.8
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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PAT (₹ cr.) & PAT Margin
23.6%
16.6%
14.9%
14.1%
12.7%
79.5
58.9
49.4 50.7
42.7
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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& Revenue impact on account of shipment of goods due to lockdown deferred to next quarter

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Financial Metrices

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ROCE
31.6% 32.6%
28.9%
27.0%
24.2%
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Net Debt to EBIDTA (x)
-0.4
-0.4
-0.5
-0.6 -0.6
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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ROE
26.3%
24.5%
22.8%
20.8%
18.6%
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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Fixed Asset Turnover Ratio (x) []
&
4.7
4.5 4.4
4.0
3.7
Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21
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• Includes Tangible net fixed assets, CWIP and Intangibles

& Revenue impact on account of shipment of goods due to lockdown deferred to next quarter

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Financial Highlights

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Operating Revenue (₹ cr.)
CAGR : 15.7%
1376.2
1134.2
1000.1
912.7
767.2
FY17 FY18 FY19 FY20 FY21
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EBITDA (₹ cr.) & EBITDA Margin
24.7%
17.0%
13.2%
8.6% 339.6
5.8%
192.3
132.1
44.7 78.4
FY17 FY18 FY19 FY20 FY21
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Gross Profit (₹ cr.) & Gross Profit Margin
50.2% 49.9% 56.8%
42.7%
40.2%
781.1
566.4
502.1
389.6
308.4
FY17 FY18 FY19 FY20 FY21
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PAT (₹ cr.) & PAT Margin

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17.2%
10.6%
8.0%
238.5
3.9%
1.5% 120.8
11.3 35.8 80.4
FY17 FY18 FY19 FY20 FY21
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Financial Ratios

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ROE
26.3%
18.6%
14.6%
2.6%
7.5%
FY17 FY18 FY19 FY20 FY21
Net Debt to EBITDA (X)
1.9
1.0
0.5
-0.6
-0.4
FY17 FY18 FY19 FY20 FY21
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ROCE
32.6%
24.6%
19.1%
3.2%
10.4%
FY17 FY18 FY19 FY20 FY21
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Fixed Asset Turnover Ratio (x) []
4.4
4.0
3.6
2.9 3.3
~
FY17 FY18 FY19 FY20 FY21
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• Includes Tangible net fixed assets, CWIP and net Intangibles

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Segmental Mix

Therapeutic Segment-Wise YoY

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100.0%
6.8%
8.2%
10.2%
11.7%
13.9%
90.0%
7.5%
8.3%
8.6%
8.6%
7.3%
80.0%
12.0% 8.8% 20.6%
18.4%
10.9%
70.0%
5.2%
11.7% 6.0%
6.3% 6.7%
60.0%
9.0%
14.2%
12.4%
13.8% 13.1%
50.0%
9.0%
14.6%
40.0%
15.4%
14.5%
15.4%
30.0%
43.9%
20.0%
35.1%
31.4% 30.8%
29.6%
10.0%
0.0%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Pain management Cardiovascular System (CVS) Cough and cold
Central Nervous System (CNS) Anti-diabetic Gastrointestinal
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Segment Revenue YoY
100.0%
90.0%
80.0%
41.4%
44.1%
51.0%
54.7%
58.0%
70.0%
60.0%
50.0%
40.0%
30.0%
58.6%
55.9%
49.0%
45.3%
42.0%
20.0%
10.0%
0.0%
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
RX OTC
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Others

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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

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

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REV ENU E MI X
5.6%
3.4% 3.0% 4.2% 4.6%
10.9%
13.8% 12.4% 10.6%
12.0%
37.3% 45.5% 42.3%
41.3%
45.0%
45.5%
42.5%
40.7% 41.1%
38.5%
FY17 FY18 FY19 FY20 FY21
US, North America Europe, UK Australia, NZ RoW
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Company Structure - Parents & Subsidiary
Marksans Pharma (UK) Limited
Distribution of quality
Marksans Holdings Limited generic pharma
Only OTC
Manufacturer of range of
162+
OTC & Rx products;
product licenses; Regional sales
Manufacturer of 50+ products portfolio
Manufacturer of development across Asia
OTC Liquids &
Plan to launch 3-4 new
Rx and OTC liquid
(China, Japan, Singapore,
Ointments
products in FY22
products Vietnam, Sri Lanka and South
450+ OTC/SKU
Wholesale Korea)
products
distributor of
50+ products in generic pharma
pipeline.
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Business Overview

Product Portfolio FY21 (₹ Cr.) Pain Management 604 Anti-Diabetic 150 Cough & Cold 124 Cardiovascular System(CVS) 124 Gastrointestinal 101 Central Nervous System(CNS) 83 Anti-Allergic 57 Vitamins, supplements 47 Anti-Biotic 46 Anticancer 26 Anti hair fall (male) 14

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REVENUE MIX - BUSINESS MODEL -
OTC
Rx
59%
41%
~95%
of revenues comes from
FY21
regulated markets
Forward-
GEOGRAPHIC MIX -
integrated
RoW business model
4.6%
Australia
10.6%
US &
North Presence in niche
America FY21
softgel segment
42.5%
Europe, UK
42.3%
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BUSINESS DESCRIPTION -

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

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Key focus areas lie in

OTC & prescription (Rx) drugs

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

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Its manufacturing facilities are accredited by

USFDA, UKMHRA and Australian TGA

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Focussed Business Model

• Focus on Forward Wider Product Regulated Markets Integrated Basket Business Model

• • • • Marksans commenced business with Marksans commenced operations as a Marksans commenced its journey with CRAMS directed at the UK and Australian formulations manufacturing enterprise products addressing the pain markets management segment • The Company entered front-end

• • • Entered the regulated Australian market marketing in regulated markets through The Company focused on high-growth with the acquisition of Nova in 2005 acquisitions areas impacted by lifestyle disorders

• • • • Entered the regulated UK market with The Company was among a few Indian The Company launched soft gelatin the acquisition of Bell Sons & Company mid-sized companies with frontend capsules, a niche category Ltd. in 2007 and Relonchem Limited in marketing capabilities • The Company now offers products across

• 2008 • The Company invested in a state of- the>10 therapeutic segments

• • Entered the US market in 2011-12 and art R&D facility, strengthening acquired Time-Cap Laboratories in 2015 integration

• The Company now has a global presence across 25 countries

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Forward Integrated Business Model

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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 R O P E
N O RT H Pharmacy Stores
A M E R I C A
Southport, UK
C A N A D A
R O W EXPORT
Hospitals
Farmingdale, USA
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Strategic Focus on Regulated Markets

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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

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Proprietary Marketing Presence

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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

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Expansion in Regulated

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25+ Countries

Markets

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

Expansion to other developed

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~95%
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markets

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

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

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USA
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Australia
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UK
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New Zealand
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Niche Formulations with few Competitors

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LIMITED COMPETITION
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HIGH BARRIERS TO ENTRY

DIFFERENTIATED OFFERINGS

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

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

High capex requirements and operational costs further restrict entry

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NEW APPROVALS
6 new approvals are awaited in US
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SELECTIVELY TARGETED LARGER MARKETS

MANUFACTURING CAPABILITIES WITH REGULATORY APPROVALS

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

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

Marksans Pharma is currently one of the most active Indian firms focused in Softgel segment

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US Business & Opportunity by Market Size

OVERVIE W 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.

Marksans’ differentiated product offering of Softgel Capsules alone has market potential of USD 9 billion in US

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.

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

OUTLOOK

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ANDA PIPELINE

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• Strengthen company’s US operations in the coming years

• Add 3-4 new products to its portfolio during the year

*Source: PwC

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The United States (FY21)

• under review

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34.2%
Y-o-Y Growth
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42.5% Contribution to Total Revenues

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585.5 (₹ Cr.) Total Revenue

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Expansion Strategy for US

• 50+ products in various therapy area segments in both OTC & Rx

• • Positioned in the niche soft gel category

• • 23 ANDAs filled till date

• • Capacity increased by adding more packaging and manufacturing lines

US BUSINESS FY21

• Expanding presence in other North American regions

• • Increase in ANDA fillings for soft gel dosage

• • Partnership with leading retailers

• • Exploiting untapped potential of drugs going off patent

ORGANIC GROWTH

• Plan to file 12 ANDA’s

NEW PRODUCTS IN PIPELINE

• Plan to launch 3-4 new products in FY22

• IN PIPELINE •

• INORGANIC Planning to acquire ANDAs to cut short development time • Increasing capacity in India and US facility to meet future requirements

• GROWTH

US BUSINESS FY25

• Expected to grow rapidly to achieve a high growth platform in FY25

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UK Business & Opportunity by Market Size

OVERVIE W 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.

MARKETING AUTHORISATION PIPELINE

(RELONCHEM)

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20
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20
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• .

• Relonchem’s portfolio comprises 162 MA’s

PRODUCT PIPELINE (BELL)

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OUTLOOK
50
•
Bell has 50+ products in the pipeline in different stages to cater to UK market.
450+
•
Relonchem is awaiting approval for ~20 MAs in the UK market.
Source: Cefic.org
The UK
(FY21) 582.0 14.1% 42.3%
(₹ Cr.)
Contribution to Total
Y-o-Y Growth
Total Revenue Revenues
25
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25
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Expansion Strategy for UK

UK BUSINESS FY21

ORGANIC GROWTH

NEW PRODUCTS

IN PIPELINE

INORGANIC

GROWTH

UK BUSINESS FY25

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• 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.

• 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.

• Developing a range of narcotic & dermatology products

• Investment in manufacturing facility to develop oral liquid solutions

• 20 MA filings planned in next 2 years

• For rapid expansion into various therapy areas and other markets including UK and Europe, the company plans to acquire product licenses.

• 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

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Australia Region Business & Opportunity by Market Size

OVERVIE W 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.

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

OUTLOOK

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

• Increased MA filings planned in next 2 years

• 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

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Australia & New Zealand
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(FY21)
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146.3 4.0% 10.6%
(₹ in Cr.)
Contribution to Total
Y-o-Y Growth
Total Revenue Revenues
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• Emerging Market Business & Opportunity by Market Size

OVERVIE W 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

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Rest of the World
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(FY21)
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62.3
(₹ in Cr.)
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Total Revenue
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32.4%
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Y-o-Y Growth
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4.5%
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Contribution to Total Revenues

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Manufacturing Capabilities

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Goa, India • Manufactures oral solid tablets, CAPACIT Y ACCREDITATIO NS and soft and hard gelatin 2.4 bn softgel and hard capsules gelatin capsules per annum • Ongoing expansion for adding new 6 bn manufacturing lines solid tablets per annum Southport, UK • Manufactures non-sterile liquids, CAPACIT Y ACCREDITATIO NS ointments and powder sachets 2 bn bottles per annum • Supplies to UK, West Africa & 1 bn Middle East tubes per annum 1 bn sachets per annum

Farmingdale, USA • Manufactures CAPACIT Y ACCREDITATIO NS hard gels, tablets and capsules 6 bn tablets and hard • Spread over an area of 7000 sq. m capsules per annum • "Made in the USA” product offering • Added incremental packaging lines

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RECENT KEY PRODUCT L AUNCHES

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R&D and Product Launches Highlights

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R&D Expenditure (₹ in Cr.)
1.4%
1.5%
0.6% 18.9
0.6% 0.7%
5.3 14.6
8.3
4.5
FY17 FY18 FY19 FY20 FY21
R&D Expenditure % of sales
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Brand	Composition	Therapy Segment	Market
COZAAR (Q4FY21)	Losartan Potassium – 25, 50 & 100 MG	Cardiovascular	UK
TAZAC, AXID (Q4FY21)	Nizatidine – 150 & 300 MG	Gastrointestinal	UK
LYRICA (Q4FY21)	Pregabaline- 25, 50, 100, 150, 200 & 300 MG	Central Nervous System	UK
IMURAN	Azathioprine 50 MG	Immunosuppressant	UK
TOFRANIL	Imipramine 25 MG	Central Nervous System	UK
LORATIDINE SGC	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 USA
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

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

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Plans to enhance portfolio with

addition of 12-13 products every year

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

R&D 4 Centres 50+ Scientists

Products 50+ in Pipeline 350+

Dossiers filed

300

Approved ANDAs/MAs 25+

Filed ANDAs/MAs

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Key Focus Areas

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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

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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)

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Leadership Team

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MR. MARK SALDANHA Man agin g Director & CEO

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.

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MR. VARDDHMAN JAIN Wh o le - Tim e 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.

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MR. SATHISH KUMAR MD – Marksan s P h arma 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.

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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.

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MR. JITENDRA M SHARMA Ch ief F in an cial Officer 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. 34

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Investment Rationale

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Widening Product Portfolio

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

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Engaging R&D Team

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

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Key Markets

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

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Debt Free, Cash Surplus Balance Sheet

Marksans generated cash from operations of ₹ 178.7 cr. in FY21 and has surplus cash of ₹ 212.3 cr. and a debt free balance sheet.

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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.

Full Integration for Higher B2C Revenue, Increase Margins

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Marksans plans to invest in additional Front End Distribution, Formulation capacities and API business, which will make it a fully integrated pharma business, secure supply chain thereby leading to Higher B2C . revenue and increase margins

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Investment Rationale

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Sustainable business model with strategic focus on regulated markets with markets of USA, UK, Australia and New Zealand contributing to c. 95% 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.

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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 offerings 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 FY21 revenue at growing 21.3% Y-o-Y and FY21 EBITDA growing 76.6% Y-o-Y and a net cash balance sheet.

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Shareholder Information

Shareholding as on March 31, 2021

Promoters 48.25% (Shares pledged – Nil)

Others 47.08% FII DII 4.34% 0.33%

Share Information (as on March 31 2021)	Share Information (as on March 31 2021)
NSE Ticker	MARKSANS
BSE Ticker	524404
Market Cap (INR Cr)	2,045
% free-float	51.75%
Free-float market cap (INR Cr)	1,058
Shares Outstanding	40,93,13,698
3M ADTV (Shares)*	19,52,664
3M ADTV (INR cr)*	11.2
Industry	Pharmaceuticals

*Source: BSE, NSE

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ESG Philosophy

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ENVIRONMENTAL
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• 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.

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SOCIAL
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• 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.

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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.

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ESG at Marksans

HELPING WOMEN & CHILD DEVELOPMENT

PROVIDE FIRE ' EXTINGUISHING EQUIPMENT S

PARTNER WITH “ ” CHERISH LIFE INDIA FOUNDATION DISTRIBUTED FREE MEDICINES TO BACKWARD SEGMENT

Marksans along with Ministry of Health, Government of Goa is helping in Women and child development, professionalizing Anganwadis and national nutrition mission in Goa. Company has provided fire extinguishing equipment to the fire department, Government of Goa. Partnering with “Cherish Life India Foundation” we provided medical treatment to under privileged society suffering from cancer and other blood disorders. Marksans & “Sri Sathya Sai Mobile Medicare Project” has distributed Free medicines to the needy and backward segment of society.

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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.

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Contact Us

INVESTOR RELATIONS TEAM AT MARKSANS PHARMA

Jitendra Sharma

Ravi Udeshi/ Rahul Thakur (Christensen Investor Relations)

(CFO)

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

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

CORPORATE OFFICE

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.

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