STRIDES PHARMA SCIENCE LIMITED — Earnings Release 2024

May 22, 2024

==> picture [143 x 47] intentionally omitted <==

May 22, 2024

BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001

Scrip code: 532531

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

Scrip code: STAR

Dear Madam/ Sir,

Sub: Press Release

Please find enclosed herewith Press Release (along with Earnings presentation) issued by the Company titled:

“Strides reports best-ever full-year performance for FY24 Strides declares a final dividend of ₹2.5 per share”

The meeting commenced at 11:30 hrs IST and concluded at 13:30 hrs IST.

This is for your information and records.

Thanks & Regards,

For Strides Pharma Science Limited,

MANJUL Digitally signed by MANJULA R A R Date: 2024.05.22 13:37:05 +05'30' Manjula Ramamurthy Company Secretary ICSI Membership No.: A30515

==> picture [90 x 87] intentionally omitted <==

Encl. As above

==> picture [505 x 51] intentionally omitted <==

Press Release May 22, 2024

==> picture [132 x 51] intentionally omitted <==

Strides reports best-ever full-year performance for FY24 Strides declares a final dividend of ₹2.5 per share

FY2024 Performance Highlights

• Highest ever full-year Revenue of ₹40,555 million in FY24, up 14.4% YoY

• Highest ever full-year EBITDA of ₹7,477 million in FY24, up 77.6% YoY

• US business achieved top end of $250 million revenue outlook for FY24, grew by 11.8% YoY

• Net Debt reduced by ₹3,131 million in FY24

• Net Debt to EBITDA improved to 2.72x in FY24

Q4FY2024 Performance Highlights

• Highest ever quarterly Revenue of ₹10,583 million

• Gross Margin returned to a historic high of 60.7% in Q4FY24

• Highest ever quarterly EBITDA of ₹2,040 million

OneSource Update

• Incumbent Biologics business recorded positive EBITDA for the first time in Q4FY24, net of one-time expenses

• Delivered on-track FY24 EBITDA performance for Strides SGC and Steriscience businesses proposed to merge into OneSource

• Received “No objection” from Stock Exchanges (NSE and BSE) on 21[st] May’24 for OneSource listing; Filing with NCLT to be completed in Q1FY25

Bangalore, India, May 22, 2024 - Strides Pharma Science Ltd (BSE: 532531, NSE: STAR) today announced its consolidated financial results for the quarter (Q4FY24) and Full Year (FY24) ended March 31, 2024.

Financial Highlights (In ₹ m)

Particulars	Q4FY24	Q3FY24	QoQ	Q4FY23	YoY	FY24	FY23*	YoY
Revenues	10,583	10,389	1.9%	9,904	6.9%	40,555	35,458	14.4%
Gross Margin	6,421	6,176	4.0%	5,897	8.9%	24,150	20,246	19.3%
Gross Margin %	60.7%	59.5%	122bps	59.5%	113bps	59.5%	57.1%	245bps
EBITDA	2,040	1,950	4.6%	1,596	27.8%	7,477	4,210	77.6%
EBITDA %	19.3%	18.8%	51bps	16.1%	316bps	18.4%	11.9%	656bps

1 Adjusted PAT = PAT from continuing operations without JV share and exceptional items (net-off taxes)

• FY23 numbers are excluding de-consolidated UCL

Arun Kumar, Founder, Executive Chairperson & Managing Director, commented on the performance and said, “FY24 was an exceptional year for Strides, marked by the successful completion of our Reset strategy initiated in FY22. The company achieved all its key objectives laid down in our Reset strategy and has bounced back to become a strong and resilient company.

As a result of our focus on consistent growth and cost containment, FY24 concluded as the best year in the Company’s history in terms of both Revenue and absolute EBITDA.

With today’s leadership announcement, we have introduced a well-structured succession and leadership development program, guided by the Board. I am confident that the strong internal talent we have developed over the years will ensure the company's continued long-term growth.

In the near term, we will continue to focus on operating cash flows while investing in growth to ensure that the efforts of our Reset are balanced by an improved revenue CAGR, in the coming years.

Our ESG efforts have started to yield results, with our EcoVadis rating improving from 30 to 44 during the first year of review. We will continue to intensify our efforts to become a more sustainable and responsible company”.

Detailed investor communication on the performance of the Company is attached.

About Strides

Strides, a global pharmaceutical company headquartered in Bengaluru, India, is listed on the BSE Limited (532531) and National Stock Exchange of India Limited (STAR). The Company mainly operates in the regulated markets and has an “in Africa for Africa” strategy and an institutional business to service donorfunded markets. The Company’s global manufacturing sites are located in India (Chennai, Puducherry, and two locations in Bengaluru), Italy (Milan), Kenya (Nairobi), and the United States (New York). The Company focuses on “difficult to manufacture” products sold in over 100 countries. Additional information is available at the Company’s website at www.strides.com.

For further information, please contact:

Strides Badree Komandur Executive Director – Finance & Group CFO +91 80 6784 0747 Email:investor-relations@strides.com Saurabh Ambaselkar Investor Relations +91 99609 31220 Email:saurabh.ambaselkar@strides.com Strides Pharma Science Limited CIN: L24230MH1990PLC057062 Regd. Office: 201, ‘Devavrata’, Sector - 17, Vashi, Navi Mumbai - 400 703 Corp. Office: Strides House, Bannerghatta Road, Bengaluru – 560076		Corporate Communication Pallavi Panchmatia:+91 80 6784 0193 Email: pallavi.panchmatia@strides.com PR Consultancy Adfactors PR Janhavi Bellare: +91 93228 54508 Janhavi.bellare@adfactorspr.com Talal Syed:+91 99876 19679 syed.talal@adfactorspr.com

Delivering with Momentum Q4 & FY24 Results | May 22, 2024 Strides Pharma Science Limited

==> picture [45 x 73] intentionally omitted <==

Safe Harbor

Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements“. These forward-looking statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those suggested by the forwardlooking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

==> picture [89 x 48] intentionally omitted <==

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

2
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

==> picture [558 x 497] intentionally omitted <==

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

||||||||||
|---|---|---|---|---|---|---|---|---|
|Best Full-year and Quarterly Performance|
|FY24|FY23|[*]|YoY|Q4FY24|Q4FY23|YoY|
|Revenues|₹40,555m|₹35,458m|14.4%||₹10,583m|₹9,904m|6.9%||
|Gross|
|₹24,150m|₹20,246m|19.3%||₹6,421m|₹5,897m|8.9%||
|Margins|
|59.5%|57.1%|245bps|60.7%|59.5%|113bps|
|EBITDA|₹7,477m|₹4,210m|77.6%||₹2,040m|₹1,596m|27.8%||
|18.4%|11.9%|656bps|19.3%|16.1%|316bps|
|Adj. PAT|[1]|
|₹1,990m|₹600m|232%||₹670m|₹341m|96.1%||
|4.9%|1.7%|321bps|6.3%|3.4%|288bps|
|EPS|[2]|₹21.66|₹6.64|₹7.29|₹3.78|

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

1 Adjusted PAT = PAT from continuing operations without JV share and exceptional items (net-off taxes) 2 EPS on Adjusted PAT

• FY23 numbers are excluding de-consolidated UCL (of Rev/GM/EBITDA/Adj. PAT of ₹ 1,584m/ ₹ 527m/ ₹ 250m/ ₹ 114m)

“ FY24 was an exceptional year for Strides, marked by the successful completion of our Reset strategy initiated in FY22.

The company achieved all its key objectives laid down in our Reset strategy and has bounced back to become a strong and resilient company. As a result of our focus on consistent growth and cost containment, FY24 concluded as the best year in the Company’s history in terms of both Revenue and absolute EBITDA.

With today’s leadership announcement, we have introduced a wellstructured succession and leadership development program, guided by the Board. I am confident that the strong internal talent we have developed over the years will ensure the company's continued longterm growth.

In the near term, we will continue to focus on operating cash flows while investing in growth to ensure that the efforts of our Reset are balanced by an improved revenue CAGR, in the coming years.

Our ESG efforts have started to yield results, with our EcoVadis rating improving from 30 to 44 during the first year of review. We will continue to intensify our efforts to become a more sustainable and responsible company”

Arun Kumar

Founder, Executive Chairperson & Managing Director

==> picture [89 x 48] intentionally omitted <==

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

3
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

==> picture [45 x 73] intentionally omitted <==

FY24 Performance Highlights Strides declares final dividend of ₹2.5 per share for the year FY24

==> picture [893 x 372] intentionally omitted <==

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

FY24 OUTLOOK FY24 ACHIEVEMENTS COMMENTS
• Recorded highest-ever full-year revenue in FY24 driven by
CONTINUING BUSINESS
FY24 REVENUES AT ₹40,555M,
growth in the US and Other Regulated Markets
REVENUES TO GROW AT 15%
GREW BY 14.4% YoY •
Q4FY24 revenue growth was driven by the US markets and
YOY
Growth markets
AIMING FOR AN EBITDA OF FY24 EBITDA AT ₹7,477M, • Stable operating costs led by cost control measures and
ACHIEVING HIGHER END OF THE manufacturing efficiencies enabled superior EBITDA margin
₹7,000M – ₹7,500M
OUTLOOK expansion
NET DEBT TO EBITDA 2.72x AS OF • Net Debt reduced by ₹ 3,131 m in FY24
NET DEBT TO EBITDA < 3x
MARCH’24 • Net Debt at ₹ 20,350 m as of Mar’24
EMPHASIS ON • Right sizing of network optimization achieved across all our
NETWORK OPTIMIZATION
MANUFACTURING NETWORK manufacturing infrastructure and further augmented by the
CONCLUDED
OPTIMIZATION exit of Singapore facility
----- End of picture text -----*

==> picture [59 x 31] intentionally omitted <==

==> picture [89 x 48] intentionally omitted <==

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

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

* YoY growth on continuing business i.e. excluding UCL

==> picture [45 x 73] intentionally omitted <==

Revenue Break-up - Revenues Grew in Line with the Outlook US achieves revenue of $250m in FY24; Other Regulated Markets delivered a strong 19.9% YoY growth in ₹ terms

==> picture [934 x 413] intentionally omitted <==

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

xx Revenue in $M xx% YoY change
Other Regulated Markets (ORM) Growth and Access Markets
Total Revenue (₹/$M) US (₹/$M) Revenue Mix
(₹/$M) (₹/$M)
Access Market Growth Market US ORM
Growth Market Access Market
$447 $491 $232 $250 $134 $154 $81 $87
14.4% 11.8% 19.9% 12.5%
8000
₹ 7,174
₹ 6,378 7000
7%
6000 10%
5000
4000 51%
3000 32%
2000
1000
0
FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24
₹ 4,186
₹ 3,256
₹ 35,458 ₹ 40,555 ₹ 18,447 ₹ 20,632 ₹ 10,632 ₹ 12,750 ₹ 3,123 ₹ 2,987
----- End of picture text -----*

• *FY23 Growth Markets Excl. UCL numbers

==> picture [59 x 31] intentionally omitted <==

• •

Consistent and Linear Improvement in Key Financial Me Stable and sustainable margins Total Revenue (₹/$M) Gross Margin EBITDA & EBITDA Margin ₹ 9,904 ₹ 9,320 ₹ 10,264 ₹ 10,389 ₹ 10,583 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 ₹ 1,596 ₹ 1,686 ₹ 1,801 ₹ 1,950 ₹ 2,040 16.1% 18.1% 17.5% 18.8% 19.3% 1% 3% 5% 7% 9% 11% 13% 15% 17% 19% 21% 0 500 1,000 1,500 2,000 2,500 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 EBITDA (₹M) EBITDA Margin (%) ₹ 5,897 ₹ 5,470 ₹ 6,083 ₹ 6,176 ₹ 6,421 59.5% 58.7% 59.3% 59.5% 60.7% 1% 11% 21% 31% 41% 51% 61% 71% 4,500 5,000 5,500 6,000 6,500 7,000 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Gross Margin (₹M) Gross Margin (%) $123 $113 $128 $125 $126 Linearity in revenue in past few quarters Further incremental growth to come in H2FY25 • Quality of business improved on the back of superior portfolio mix • Gross Margin consistently improved and returned to historic highs • Stable cost and operating leverage enabled EBITDA Margin improvement

Consistent and Linear Improvement in Key Financial Metrics Stable and sustainable margins

==> picture [79 x 21] intentionally omitted <==

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

xx Revenue in $M
----- End of picture text -----

==> picture [218 x 26] intentionally omitted <==

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

Adj. PAT (₹M)
----- End of picture text -----

Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24

• Full year impact of Singapore sale to reflect in EPS next year

==> picture [89 x 48] intentionally omitted <==

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

6
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

US Market

The US remains a key market for Strides, Having achieved the higher end of the FY24 revenue outlook of $250m, we are well poised to achieve the ~$400m objective over the next 3 years

xx	xx	US Business Achieved Top-end of $250m Revenue Outlook, Grew by 11.8% YoY Incremental growth to be visible in H2FY25 Full Year Revenue (₹/$M) ▸FY24 Revenues at ₹ 20,632m ($250m), grew 11.8% over FY23 ▸Q4FY24 Revenues at ₹ 5,380m ($65m), grew 5.5% YoY ▸Sustained market share across the product portfolio enabled YoY growth ▸Very weak flu season in Q4FY24 was offset by gSuprep launch ▸Received 9 new product approvals ▸Launched 6 products; total commercialized products at 66 ▸Disciplined and calibrated portfolio launch approach led to improved profitability ▸Ranked amongst the top 3 in 34 products enjoying a market-leading position for several years, contributing 75% of our total US revenues ▸Industry-leading customer service levels amongst generic pharma players leading to near-zero Failure- To-Supply penalties ▸The focus remains on the fast-tracked launches from our approved basket of ANDAs (260+ active AND with 245 approvals) ▸Aiming to launch an additional 60 products over the next 3 years to achieve the stated objective $400m revenue ▸Investment in new segments as part of a long-term strategy to grow beyond $400m; entry into the na spray and 505 (b)(2) ▸Aiming for first filing from the new segment in the next 12-15 months Highlights Business Outlook ₹ 5,097 ₹ 4,699 ₹ 4,993 ₹ 5,560 ₹ 5,380 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 ₹ 18,447 ₹ 20,632 FY23 FY24 YoY 11.8% Quarterly Revenue Trend (₹/$M) YoY 5.5% QoQ -3.2% $232 $250 $63 $57 $61 $67 $65 Revenue in $M
		₹ 5,097 ₹ 4,699 ₹ 4,993 ₹ 5,560 ₹ 5,380 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 YoY 5.5% QoQ -3.2% $63 $57 $61 $67 $65

▸ The focus remains on the fast-tracked launches from our approved basket of ANDAs (260+ active ANDAs with 245 approvals) ▸ Aiming to launch an additional 60 products over the next 3 years to achieve the stated objective of $400m revenue ▸ Investment in new segments as part of a long-term strategy to grow beyond $400m; entry into the nasal spray and 505 (b)(2) ▸ Aiming for first filing from the new segment in the next 12-15 months

==> picture [89 x 48] intentionally omitted <==

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

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

==> picture [59 x 31] intentionally omitted <==

YoY and QoQ growth are on ₹ reported numbers

Other Regulated Markets Portfolio maximization and increased focus on B2B partnerships will continue to drive growth

==> picture [382 x 273] intentionally omitted <==

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

19.9% YoY
Full Year Revenue (₹/$M)
xx Revenue in $M YoY 19.9% 
$154
$134
₹ 10,632 ₹ 12,750
FY23 FY24
----- End of picture text -----

Other Regulated Markets - FY24 Revenues at $154m, Grew by 19.9% YoY

Highlights

▸ All regulated markets ex-US form part of the Other Regulated Markets ▸ FY24 Revenues at ₹12,750m ($154m), grew 19.9% YoY ▸ Q4FY24 Revenues at ₹3,322m ($40m)

• Robust demand for key products coupled with new long-term supply contracts, has significantly propelled growth within the EU market

▸ Strong customer advocacy and dependable supply enabled us to expand our customer base

==> picture [362 x 208] intentionally omitted <==

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

Quarterly Revenue Trend (₹/$M)
YoY - 1.0%  QoQ 1.1% 
$42 $35 $40 $40 $40
₹ 3,356 ₹ 2,873 ₹ 3,269 ₹ 3,286 ₹ 3,322
Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24
----- End of picture text -----

Business Outlook

▸ Expansion of product portfolio and new customer acquisitions to drive growth ▸ Conversion of the existing strong funnel of new opportunities to deliver growth ▸ Continued momentum in filings and approvals to fast-track growth ▸ New product approvals in key markets to drive growth in H2FY25

==> picture [89 x 48] intentionally omitted <==

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

10
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

YoY and QoQ growth are on ₹ reported numbers

Growth and Access Markets Growth Markets positioned for strong growth via geographical expansion & new products

==> picture [466 x 500] intentionally omitted <==

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

Growth Market grew 29% YoY; Muted growth in Access Markets
Growth Market Revenue (₹/$M)
xx Revenue in $M YoY 12.5% 
$81 $87
₹ 7,174 8,000
₹ 6,378 7,000
Growth Markets 6,000
5,000
Access Markets ₹ 3,256 ₹ 4,186 4,000
3,000
2,000
₹ 3,123 ₹ 2,987 1,000
0
FY23 FY24
YoY 29.6%  QoQ 21.9% 
$18 $21 $24 $19 $23
2,500
₹ 2,002
₹ 1,747 ₹ 1,881 2,000
₹ 1,543
₹ 1,451
1,500
₹ 778
₹ 1,119 1,000
₹ 881 ₹ 1,238
₹ 1,053
500
₹ 570 ₹ 970 ₹ 883 ₹ 490 ₹ 644
0
Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24
----- End of picture text -----*

Growth Markets and Access Markets FY24 Revenues at $87m Growth Market grew 29% YoY; Muted growth in Access Markets

Growth Markets

• Growth Markets includes Africa operations and new geographies of LATAM, MENA, CIS, APAC

• FY24 Revenues at ₹4,186m ($51m) and Q4FY24 Revenues at ₹ 1,238m ($15m)

Business Outlook :

• Focus on portfolio maximization strategies and astute channel partner expansion will drive the future growth in Growth Markets

• New filings to aid Growth Market to grow better than company average

Access Market

• FY24 Revenue at ₹2,987m ($36m) and Q4FY24 Revenue at ₹644m ($8m)

• Continued focus on CIPs with vendors to reduce costs and enhance competitiveness

• Contribution to overall Revenues continues to be small

Business Outlook :

• Global Funds allocation was muted in FY24. However, Strides received a higher allocation in FY25 on the back of superior DIFOT (Delivery In Full On Time)

• Access Markets Revenues continue to be lumpy Q-o-Q

==> picture [89 x 48] intentionally omitted <==

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

12
----- End of picture text -----

*Excl. UCL numbers

==> picture [59 x 31] intentionally omitted <==

YoY and QoQ growth are on ₹ reported numbers

Financial Performance Strong Financial discipline enabled profitability and cash flow generation

	Profit & Loss Account – Q4 & FY24
	Income statement (₹m)
	Particulars Q4 FY24 Q3 FY24 QoQ Q4 FY23 YoY FY24 FY23 Restated YoY FY23 Reported I. Revenue 10,583 10,389 1.9% 9,904 6.9% 40,555 35,458 14.4% 37,042 II. Material Costs 4,162 4,212 4,007 16,405 15,212 16,269 III. Gross Margin (I- II) 6,421 6,176 4.0% 5,897 8.9% 24,150 20,246 19.3% 20,773 Gross Margin % 60.7% 59.5% 122 bps 59.5% 113 bps 59.5% 57.1% 245 bps 56.1% a. Personnel Cost 1,992 1,845 1,757 7,511 7,195 7,320 b. Other Opex 2,389 2,381 2,545 9,162 8,841 8,993 IV. Total Opex (a+b) 4,381 4,226 4,301 16,674 16,037 16,313 V. EBITDA (III-IV) 2,040 1,950 4.6% 1,596 27.8% 7,477 4,210 77.6% 4,460 EBITDA Margin % 19.3% 18.8% 51 bps 16.1% 316 bps 18.4% 11.9% 656 bps 12.0% c. Depreciation and amortisation 498 512 609 2,207 2,392 2,433 d. Net Finance Cost 680 717 574 2,791 1,814 1,866 e. Exceptional items – net (gain) / loss 81 101 73 1,890 119 170 f. JV share of loss 486 520 406 1,757 2,853 2,853 VI. Profit/ (loss) before tax (V-c-d-e-f) 296 100 195.9% -67 -1,169 -2,968 -2,862 g. Tax 193 101 71 316 -596 -553 VII. Profit/(loss) after tax from continuing operations 104 -1 -138 -1,485 -2,372 -2,309 h. Profit from Discontinued Operations 1 541 0 542 186 186 VIII. Profit/ (loss) for theperiod(VII+h) 104 541 -138 -943 -2,186 -2,123*
	Reconciliation of EBITDA (₹m)
	Particulars Q4FY24 Q3FY24 Q4 FY23 FY24 FY23 Restated FY23 Reported*
	Profit before exceptional items & tax 863 721 412 2,478 4 161
	Less: Finance income 122 76 231 353 745 745
	Add : Depreciation and Amortization 498 512 609 2,207 2,392 2,433
	Add : Finance costs 802 793 805 3,144 2,559 2,611
	Consolidated EBITDA asperpress note 2,040 1,950 1,596 7,477 4,210 4,460
	14 14 * FY23 restated numbers are excluding de-consolidated UCL

	Net Debt reduced by₹3,131m in FY Current Net Debt to EBITDA stands at 2.72x – Ahead of	Net Debt reduced by₹3,131m in FY Current Net Debt to EBITDA stands at 2.72x – Ahead of	Net Debt reduced by₹3,131m in FY Current Net Debt to EBITDA stands at 2.72x – Ahead of
	Particulars (In ₹m)	Mar'23	Mar’24
	Working Capital Loans Long Term Loans US Long Term Revolver Facility*	14,473 7,617 4,507	15,742 4,727 3,676
	Gross Debt	26,596	24,145
	Cash and Cash Equivalents**	-3,115	-3,795
	Net Debt	23,481	20,350

Net Debt reduced by ₹3,131m in FY24, Net Debt at ₹20,350m Current Net Debt to EBITDA stands at 2.72x – Ahead of the outlook of <3x

• The increase in the interest cost for FY24 is due to interest rate increases compared to FY23 and a one-off Finance income in FY23

• Majority of the year’s debt reduction was completed in Q4FY24 and the benefit of interest cost savings to flow in FY25

• Credit rating “Ratings reaffirmed; Outlook revised to Stable” received in Q4FY24

• Efficient working capital cycle enabled operating cash generation

• Strong operating cash flow generation of ₹7,011m post-tax enabled us to reduce debt by ₹3,131m, and fund capex of ₹1,182m

• Cash to Cash cycle improved from 140 days in FY23 to 129 days in FY24

• Long-term revolver is asset-based financing backed purely by local assets, mainly US receivables with no recourse to Indian operations

• ** Cash and cash equivalents ₹ 3,795m consists of cash balance ₹ 1,610m , deferred consideration receivable

• ₹ 742m and deposits of ₹ 1,443m

Finance cost (In ₹m)	FY23	FY24
Interest Cost on Borrowings (A)	1,977	2,544
Other Finance Charges (B)	634	601
Finance Income (C)	805	353
Net Finance Cost (A+B-C)	1,807	2,791

Outlook for FY25

• ➢ Aiming for Net Debt reduction of ₹5,000m (including debt pushdown of ~₹2,800m to OneSource)

• ➢ Free cash generation to enable Net Debt to EBITDA ratio to <2x by FY25

• ➢ Continuing Capex of ₹1,500m - ₹2,000m

==> picture [89 x 48] intentionally omitted <==

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

15
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

==> picture [45 x 73] intentionally omitted <==

Key Balance Sheet Ratios

==> picture [588 x 193] intentionally omitted <==

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

Net Debt to Equity (x) Net Debt to EBITDA (x)
5.27
1.08
0.98
2.72
FY23 FY24 FY23 FY24
----- End of picture text -----

==> picture [275 x 213] intentionally omitted <==

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

RoCE (%)
15.02% #
12.83%
4.48%
FY23 FY24 Q4FY24
----- End of picture text -----

Current Ratio (x)

==> picture [274 x 168] intentionally omitted <==

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

1.05
1.03
FY23 FY24
----- End of picture text -----

All ratios are computed on full year numbers *Capital Employed = Equity + Net Debt # ROCE Exit runrate basis Q4FY24

==> picture [276 x 393] intentionally omitted <==

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

Cash to Cash Cycle (Days)
140
129
FY23 FY24
Fixed Asset Turnover Ratio (x)
4.60
3.09
FY23 FY24
----- End of picture text -----

==> picture [89 x 48] intentionally omitted <==

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

16
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

==> picture [45 x 73] intentionally omitted <==

Balance Sheet

Strong Governance and Corporate Actions improved the Balance Sheet position

Particulars	31-Mar-23	31-Mar-24
Assets
Net Tangible Assets ( including CWIP)	12,006	8,809
Right-of-use assets	1,846	895
Goodwill and Other Intangibles	10,769	10,565
Investments	4,390	1,969
Other Non-current Assets	674	2,659
Tax assets	4,267	3,809
Inventories	11,465	11,262
Cash and bank balances (including Current investments)	3,668	2,969
Trade receivables	12,994	11,419
Other current assets	4,306	4,040
Total Assets	66,384	58,398
Liabilities
Equity	22,123	21,256
Non-controlling interest	-394	-539
Equity	21,729	20,717
Borrowings	27,745	24,145
Lease liabilities	2,551	1,023
Tax liabilities	713	808
Other non-current liabilities	139	137
Provisions	1,959	1,632
Trade payables	9,823	8,516
Other current liabilities	1,725	1,420
Total Equity and Liabilities	66,384	58,398
			17

OneSource Strong performance in Q4

==> picture [45 x 73] intentionally omitted <==

OneSource (formerly known as Stelis BioPharma Limited) - Update

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

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

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

OneSource (erstwhile Stelis) - Biologics and Drug-Device Combinations Business

• OneSource achieved highest revenue at $21.5m in FY24, a 4.4x growth over FY23

• Recorded positive EBITDA for the first time in Q4FY24, net of one-time expenses

• During the period, the MSA’s (Master Service Agreement) increased from $31.1m to $72.9m

• The company received its first CSA (Commercial Service Agreement) for a GLP-1 to be launched by one of our key customers in FY25

• Drug Substance (DS) division was commercialized in H2FY24 and we expect it to grow in the near term

Steriscience – Complex and Soft Gelatin Capsules Specialty injectables (Strides Business Moving (CMO+CDMO) to OneSource)

• Complex and Specialty ▸ FY24 achieved 100% of injectables (CMO+CDMO) EBITDA at $20m business delivered ~100% of its EBITDA outlook of $16m in

FY24

• OneSource on completion of the transaction, will emerge as India’s first specialty CDMO with 40 unique logos including 15 logos for GLP-1

==> picture [156 x 11] intentionally omitted <==

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

OneSource – FY25 Outlook
----- End of picture text -----

• Aiming for Revenue in range of $175-190m

• Aiming for EBITDA in range of $60-65m

Update on OneSource Listing

Received “No objection”* from Stock Exchanges (NSE and BSE) on 21[st] May’24, post clearance from SEBI

==> picture [81 x 55] intentionally omitted <==

==> picture [381 x 57] intentionally omitted <==

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

Filing with NCLT to be completed in Q1FY25
----- End of picture text -----

==> picture [89 x 48] intentionally omitted <==

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

19
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

*Received “No objection” from NSE and “No adverse observations” from BSE

Update on Board and Management changes

==> picture [45 x 73] intentionally omitted <==

Current Board of Directors

==> picture [125 x 132] intentionally omitted <==

==> picture [125 x 132] intentionally omitted <==

==> picture [131 x 132] intentionally omitted <==

S. Sridhar Independent Director Retiring on 30th July 2024

Bharat. D. Shah Independent Director Retiring on 14[th] June 2024

Arun Kumar Executive Chairperson & Managing Director

==> picture [113 x 131] intentionally omitted <==

==> picture [107 x 131] intentionally omitted <==

Ameet Hariani Independent Director (wef 1[st] Feb’24)

Dr. Kausalya Santhanam Independent Director

==> picture [109 x 131] intentionally omitted <==

Homi Rustam Khusrokhan Independent Director

==> picture [109 x 131] intentionally omitted <==

Badree Komandur Executive Director & Group Chief Financial Officer

==> picture [89 x 48] intentionally omitted <==

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

21
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

Strengthening the Diversification of Board and Succession Planning (wef 1[st] June’24)

==> picture [45 x 73] intentionally omitted <==

Change in Role

New Board Members

==> picture [99 x 120] intentionally omitted <==

==> picture [113 x 120] intentionally omitted <==

Badree Komandur Designation:

Arun Kumar Designation:

Independent Director

==> picture [108 x 120] intentionally omitted <==

Subir Chakraborty

Managing Director and Group CEO

Executive Chairman

Qualification: Mechanical Engineer from IIT Madras and PGDM from IIM Calcutta

Expertise:

• ✓ 4 decades of experience in reputed organisations such as Berger Paints , Balmer Lawrie and Exide Industries

• ✓ Board member of Exide Industries from 2013 onwards prior to becoming a Managing Director & CEO in 2021

==> picture [473 x 33] intentionally omitted <==

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

New KMP
----- End of picture text -----

• ✓ Extensive experience in the field of ESG and Sustainability ✓ Recipient of several awards and accolades, including the India energy storage alliance (IESA) IN May 2023

==> picture [128 x 120] intentionally omitted <==

Vikesh Kumar

Designation: Group Chief Financial Officer

Qualification: PGDM (Finance) from SP Jain Institute of Management & Research, Mumbai

• ✓ Guest faculty at reputed management Institutions

Expertise:

Executive Director

✓ Vikesh joined Strides in 2009 as a management trainee and since then, held multiple positions in the finance function over the years and has contributed significantly to the turnaround of Strides in the last few years

==> picture [108 x 130] intentionally omitted <==

Aditya Kumar

Qualification: Bachelor of Science from Newcastle University , Master of Research in Biophysics from Kings College, London.

✓ As the CFO for the Front End businesses, he has been instrumental in driving the reset strategy focusing on building profitable, sustainable cash generating operations. He has extensive experience in Business Finance, M&A, Treasury, Forex Management, Fund Raising, Governance and Investor Relations

Expertise:

✓ Aditya started his career with Strides in 2013 as management trainee and since then held multiple functions prior to becoming the head of Business development

✓ He is currently responsible for growing the partnered Business across regulated and growth markets

==> picture [59 x 31] intentionally omitted <==

FY25 Outlook

==> picture [45 x 73] intentionally omitted <==

Outlook for FY25

PARAMETERS

PARAMETERS FY25 OUTLOOK COMMENTS CONTINUING BUSINESS REVENUE TO SIGNIFICANT GROWTH TO COME IN H2FY25 BASED REVENUE GROW AT 12-15% YoY ON TARGETED PRODUCT LAUNCHES GLOBALLY AIMING FOR AN EBITDA OF ₹9,500M – EBITDA MARGIN TO BE IN THE RANGE OF 20%- EBITDA MARGIN ₹10,000M 22% NET DEBT TO EBITDA <2.0x AS OF EFFICIENT WORKING CAPITAL CYCLE AND NET DEBT TO EBITDA OPERATING CASHFLOW TO AID DEBT REDUCTION MARCH’25 US Business US REVENUE TO BE IN RANGE OF $285- AIM TO ACHIEVE $400M IN THE NEXT 3 YEARS $300M

==> picture [37 x 37] intentionally omitted <==

==> picture [37 x 37] intentionally omitted <==

==> picture [37 x 37] intentionally omitted <==

==> picture [37 x 37] intentionally omitted <==

==> picture [59 x 31] intentionally omitted <==

==> picture [89 x 48] intentionally omitted <==

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

24
----- End of picture text -----

==> picture [45 x 73] intentionally omitted <==

Q4 & FY24 Earnings Call Details

==> picture [131 x 51] intentionally omitted <==

invites you to interact with the senior management on Q4 & FY24 Performance

May 22, 2024 3:30pm IST / 11:00am BST / 6:00am EDT / 6:00pm HKT

Participants from the Management would be:

Arun Kumar Badree Komandur Executive Director & Group CFO

Founder, Executive Chairperson & Managing Director

==> picture [73 x 59] intentionally omitted <==

Click here to pre-register and join without the operator

==> picture [59 x 73] intentionally omitted <==

Join through an operator using dial in numbers

India Primary	India Primary	+91 22 6280 1434 / +91 22 7115 8838	+91 22 6280 1434 / +91 22 7115 8838	+91 22 6280 1434 / +91 22 7115 8838
USA	18667462133		Singapore	8001012045
UK	08081011573		Hongkong	800964448

==> picture [89 x 48] intentionally omitted <==

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

25
----- End of picture text -----

==> picture [59 x 31] intentionally omitted <==

Thank You !

Strides Pharma Science Limited CIN: L24230MH1990PLC057062

Corporate Office

Strides House, Bannerghatta Road, Bengaluru - 560 076, India Tel.: +91 80 6784 0000/ 6784 0290 Email: Investor-Relations@strides.com

Registered Office

201, Devavrata, Sector 17, Vashi, Navi Mumbai - 400 703, India, Tel.: +91 22 2789 2924/2789 3199 Website: www.strides.com