Zydus Lifesciences Limited has informed the Exchange about Investor Presentation

May 20, 2022

Listing Department BOMBAY STOCK EXCHANGE LIMITED P J Towers, Dalal Street, Fort, Mumbai–400 001

Listing Department NATIONAL STOCK EXCHANGE OF INDIA LIMITED Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai–400 051

Re:

Investor Presentation

Dear Sir,

Code: 532321

Code: ZYDUSLIFE

Please find attached the Investor Presentation on the audited financial results for the quarter / year ended on March 31, 2022.

Please find the same in order.

Thanking you,

Yours faithfully, For, ZYDUS LIFESCIENCES LIMITED (Formerly known as Cadila Healthcare Limited)

DHAVAL N. SONI COMPANY SECRETARY

Encl.: As above

Zydus Lifesciences Limited Earnings Presentation 20th May, 2022

1

Disclaimer and Safe Harbor Statement

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•

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THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “projects”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward- looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company’s actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and expansion plans (iii) changes in regulatory norms applicable to the Company (iv) technological changes (v) investment income (vi) cash flow projections etc.

The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. This document is just a Presentation and is not intended to be a “prospectus” or “offer document” or a “private placement offer letter” (as defined or referred to, as the case may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company’s equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company’s securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever.

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Q4 FY22: Financial Performance

Total Revenues*

R&D

Key Highlights of Q4 FY22

Rs. 38,638 mn 5% YoY

Rs. 2,697 mn 7% of revenues

EBITDA & Margin %#

Net Profit ex. One-offs Exceptional & Disc. Ops ^

Rs. 8,612 mn 22.3% of revenues 1% YoY

Rs. 5,250 mn 12% YoY

* Total Revenues include net sales and other operating income.

Revenue Break-up (Rs. mn) and YoY Growth

-2% 138%

1%

10%

Total 37,418, 5%

-4%

14%

6%

❑ Ex-COVID related business, total revenues grew 7% yoy.

❑ India formulations business continued to display robust performance led

by strong momentum in branded portfolio.

❑ Launched Desidustat (OxemiaTM) in India for the treatment of anemia in

patients with Chronic Kidney Disease (CKD). It is the second NCE launched, discovered and developed in-house.

❑ On the Specialty front in the US, entered into an asset purchase agreement with BridgeBio Pharma for acquisition of NULIBRYTM

❑ Research & Development (R&D) spend: at Rs.2,697 mn (7% of revenues).

❑ Net debt: Rs. -570 mn (at 31-Mar’22) vs INR 34,862 mn (at 31-Mar’21).

❑ Capex for the quarter: Rs. 2,668 mn and for FY22: Rs. 11,218 mn.

Key Board Meeting Updates

❑ The Board approved buy-back of upto Rs. 7,500 mn at Rs. 650 per equity

share (90% premium to closing share price of 19th May, 2022).

❑ The Board recommended a dividend of 250%.

Note: # Adjusted for one-time COVID related inventory provision of Rs. 1,435 mn in Q4 FY22

^ Adjusted for one-time COVID related inventory provision, exceptional and non-recurring items as well as profit/ loss from discontinued operations.

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India Form11,640 ConsumerWellness, 6,330 US14,233 EM2,750 EU633 API1,363 Alliances469 Key Financial Metrics (1/2)

Total Revenues (Rs. mn)

Gross Profit (Rs. mn)

Total R&D (Rs. mn) and % to Revenues

EBITDA ex. one-offs (Rs. mn) and Margin %

6.2%

7.0%

7.0%

7.8%

6.8%

23.1%

20.6%

22.3%

23.5%

23.1%

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36,703 36,398 38,638 Q4FY21Q3FY22Q4FY22144035152652FY21FY222,266 2,553 2,697 Q4FY21Q3FY22Q4FY2211,196 10,406 FY21FY228,495 7,516 8,612 Q4FY21Q3FY22Q4FY2233,871 35,239 FY21FY2224,339 23,064 23,680 Q4FY21Q3FY22Q4FY2296,014 97,200 FY21FY22Key Financial Metrics (2/2)

PAT ex. Exceptional, one-offs and discontinued ops.(Rs. mn)

Capex (Rs. mn)

Net debt/ EBITDA

Net Working Capital* (Rs. mn)

(0.02)

*Net working capital includes Inventory, Trade receivables and Trade payables.

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4,684 5,069 5,250 Q4FY21Q3FY22Q4FY222058122988FY21FY222,795 3,100 2,668 Q4FY21Q3FY22Q4FY227,634 11,218 FY21FY221.03 0.87 0.11 0.09 Q4FY21Q1FY22Q2FY22Q3FY22Q4FY2241,577 43,756 46,289 48,765 49,188 Q4FY21Q1FY22Q2FY22Q3FY22Q4FY22India Formulations business

Branded business continued to display strong growth

Highlights for the quarter

Q4 FY22 Revenue Contribution

31%

Q4 FY22 Gr.

YoY

QoQ

13.8%

7.9%

FY22 Gr.

19.0%

Large brands - a key growth driver

TA-wise Break-up*

Brand Value (Rs. Mn)*

1000+

500 to 1000

250 to 500

# of Brands

8

22

36

▪ Ex. COVID opportunities, Gx portfolio and divested

products, the branded prescription business grew by 19% YoY.

▪ Growth was well represented by volume expansion as

well as better realization.

▪ Gained market share in key therapies viz. anti-diabetic,

cardiovascular and gynecology on a YoY basis#.

▪ On the Super Specialty front,

➢ Retained leadership position in Nephrology

segment* and

➢ Fastest growing Company in India in Oncology

segment.

▪ With first in market launches like UjviraTM and

ExmeptiaTM, biologics business has one of the largest portfolios and is among the fastest growing companies in respective therapeutic areas.

*Source: AWACS MAT March 22 #Source: AWACS Jan – Mar 2022 qtr.

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Anti-infectives15%Cardiac15%Derma5%GI11%Gynae6%Pain10%Respi11%Others27%40,429 48,125 FY21FY22India Formulations Sales (Rs. mn)10,232 10,785 11,640 Q4FY21Q3FY22Q4FY22India Formulations Sales (Rs. mn)Consumer Wellness

Focus on execution to accelerate the growth

Highlights for the quarter

Q4 FY22 Revenue Contribution

17%

▪ Retained leadership position in 5 out of 6 brands in

their respective categories.

▪ Business environment remained challenging due to

inflationary pressure on input costs.

▪ Gross margins improved sequentially on the back of price increase taken in various brands and cost improvement measures.

Q4 FY22 Gr.

YoY

QoQ

5.8%

65.6%

FY22 Gr.

7.5%

Key brands continued to maintain leadership position

Leading Brands

#1

#1

#1

#1

#1

Indicates category rank

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5,984 3,822 6,330 Q4FY21Q3FY22Q4FY22Consumer Wellness Sales (Rs. mn)18,409 19,788 FY21FY22Consumer Wellness Sales (Rs. mn)US Formulations business

Consolidating the position amidst challenging environment

Highlights for the quarter

Q4 FY22 Revenue Contribution

38%

▪ Maintained top 3 ranking in ~ 60% of the product

families in the US.

▪ Received final approval for 5 new products and launched 4 new products during the quarter.

$ 204 mn

$ 199 mn

$ 189 mn

$ 856 mn

$ 780 mn

▪ On the Specialty front, acquired NULIBRYTM

(Fosdenopterin for Injection).

Q4 FY22 Gr.

YoY

QoQ

-4.3%

-4.4%

FY22 Gr.

-8.5%

Continued investment to build the generics pipeline

ANDAs

Q4 FY22

FY22

Cumulative

Filings

Approvals

1

5

26

28^

420

312

The product is approved by the USFDA to reduce the risk of mortality in patients with molybdenum cofactor deficiency (MoCD) Type A, an ultra-rare, life- threatening pediatric genetic disorder.

^ inclusive of 10 tentative approvals.

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14,876 14,892 14,233 Q4FY21Q3FY22Q4FY22US Formulations Sales (Rs. mn)63,505 58,138 FY21FY22US Formulations Sales (Rs. mn)Emerging Markets Formulations business

Base business continued to display growth

Highlights for the quarter

Q4 FY22 Revenue Contribution

7%

Q4 FY22 Gr.

YoY

QoQ

10.0%

-5.6%

FY22 Gr.

17.3%

▪ Excluding COVID opportunities, the business grew by

29% on a YoY basis.

▪ Robust performance in key markets of Latin America, Philippines and Vietnam drove overall performance of the business.

▪ However, the situation remained challenging for

business growth in Sri Lanka in the light of ongoing political crisis. We remained vigilant to secure our receivables and offset the impact of currency decline through price hikes.

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2,499 2,914 2,750 Q4FY21Q3FY22Q4FY22EM Formulations Sales (Rs. mn)10,167 11,921 FY21FY22EM Formulations Sales (Rs. mn)Updates on Innovation

NCE: Saroglitazar Magnesium

• Global pivotal Phase II(b)/III CT viz. EPICS-IIITM to evaluate the efficacy and safety of the molecule in patients with PBC is

currently going on for the US market.

• Patient enrolment ongoing for EVIDENCES-X, another global pivotal Phase II(b) CT to evaluate the efficacy and safety of the

molecule in subjects with NASH and Fibrosis indications.

NCE: Desidustat

• Received marketing authorization from DCGI for the molecule for the treatment of anemia in patients with CKD.

• The molecule has been launched in India in March, 2022 under the brand name OxemiaTM. It is our 2nd NCE developed

exclusively from lab to market.

• On the global development front, Phase III clinical trials underway in China for management of anemia in CKD patients.

NCE: ZY19489 (Anti-malarial)

▪ The molecule is fast acting and effective against both P. falciparum and P. vivax strains of malarial parasites.

▪

It is being developed to provide an effective alternative to the current front-line antimalarial drugs, as artemisinin-based combination therapies (ACTs) are under immediate threat of resistance.

▪ Phase I study in healthy volunteers demonstrated long-half life and good safety profile.

CT = Clinical Trial; NASH = Non-Alcoholic Steatohepatitis, PBC = Primary Biliary Cholangitis, DCGI = Drug Controller General of India, CKD = Chronic Kidney Disease

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Updates on Innovation

NCE: ZYIL1 (NLRP3 inhibitor)

• Initiated Phase II(a) CTs in Australia to study the safety, tolerability, pharmacokinetics and pharmacodynamics of the

molecule in patients with CAPS in Australia.

• The molecule is an oral NLRP3 inflammasome inhibitor targeted at selectively supressing inflammation.

Biosimilars

• Submitted marketing authorization to DCGI for Rituximab and submitted an application to initiate Phase III clinical trials for

one mAb during the quarter.

• Received permission from RCGM to initiate pre-clinical toxicity study for one product during the quarter.

• On the emerging markets front, received cGMP approval for the manufacturing facility from the Mexican regulatory

authority COFEPRIS for 3 products during the quarter.

505(b)(2) and Specialty initiatives

• During the quarter, concluded pIND meeting with USFDA for 1 product in orphan space and received pNDA follow-up

response for another product during the quarter.

• During the year, received tentative approval for 1 NDA, received a clearance from the USFDA for an IND application for a pain

management product and concluded 3 pNDA meetings and 2 pIND meetings with USFDA.

CAPS = Cryopyrin- Associated Periodic Syndrome, CTs = Clinical Trials, IND = Investigational New Drug, NDA = New Drug Applications, RCGM = Review Committee on Genetic Manipulation, mAb= monoclonal antibody

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Zydus at a Glance

>$2 bn

Global Revenues1

5th

Largest generic Co. in US in terms of prescription3

8

R&D Centers For NCE, APIs, Gx formulations, Biosimilars and Vaccines

Over 50%

Revenues from branded business (India, EM and Wellness)

Among Top 3

In 60% of product families marketed in US3

1st

Approved product for NASH in India - (Bilypsa® - Saroglitazar)

$4.5 1st bn

Market Capitalization2

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Brands among Top 300 in India4

1st 1st

OSD formulation for anemia associated with CKD – OxemiaTM (Desidustat)

36 Mfg. sites Producing

Biosimilars (pipeline & launched) & 7 novel >28 bn pills annually products (pipeline)

23 K

Biosimilars (pipeline & Zydans globally incl. launched) & 7 novel 1400 scientists (R&D) products (pipeline)

22 Biosimilars in portfolio

Biosimilars (pipeline & including 13 launched in launched) & 7 novel India products (pipeline)

1. 2. 3.

Assuming exchange rate of Rs. 74.5 per USD As on 19th May, 2022, exchange rate of Rs. 77.65 per USD IQVIA, Regulatory Insights, MAT March 2022 TRx

4. As per AWACS MAT March 2022

12

Consolidated Financial Performance (reported)

Comments for Q4 FY22:

•

•

•

•

GC

impacted

by

one-time

inventory provision of Rs. 1.4 bn.

Opex

increased QoQ due to

increased marketing spend (incl.

Wellness) and freight cost.

Adj.

for

one-time

inventory

provision, Q4 FY22 EBITDA was

Rs. 8,612 mn (22.3% margin).

Adj. Net Profit for Q4 FY22 was

Rs. 5,250 mn, up 12% YoY.

* Excludes Research related expenses # Discontinued operations refer to divested India-centric Animal Health Business and discontinuation of Nesher and Hercon business.

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Rs. mnQ4 FY22Q4 FY21YoYgr.Q3FY22QoQgr. FY22 FY21Gr.Total Income from Ops.38,638 36,703 5.3%36,398 6.2%1,52,652 1,44,035 6.0%Gross Contribution (GC)23,680 24,339 -2.7%23,064 2.7%97,200 96,014 1.2%Gross Margin %61.3%66.3%63.4%63.7%66.7%Employee benefits expenses *5,401 5,311 1.7%5,287 2.2%21,974 20,954 4.9%R&D expenses2,697 2,266 19.0%2,553 5.6%10,406 11,196 -7.1%Other operating expenses8,405 8,267 1.7%7,708 9.0%31,413 29,993 4.7%EBITDA7,177 8,495 -15.5%7,516 -4.5%33,407 33,870 -1.4%EBITDA Margin %18.6%23.1%20.6%21.9%23.5%Other Income791 -304 360.2%607 30.3%2,247 456 392.8%Finance cost385 232 65.9%311 23.8%1,270 1,588 -20.0%Depreciation and amortization1,854 1,753 5.8%1,770 4.7%7,130 6,696 6.5%Profit before exceptional items5,729 6,206 -7.7%6,042 -5.2%27,254 26,042 4.7%Profit after exceptional items5,729 5,475 4.6%6,042 -5.2%28,381 23,991 18.3%Tax expenses1,092 -2,060 153.0%1,094 -0.2%5,117 1,936 164.3%Share of profit from JVs46 38 21.1%223 -79.4%462 474 -2.5%Profit from discontinued operations #-150 -219 31.5%-65 -130.8%22,457 -680 Minority Interest559 564 -0.9%102 448.0%1,310 514 154.9%Reported Net Profit3,974 6,790 -41.5%5,004 -20.6%44,873 21,335 110.3%Details of Other Incomes and Exchange rate Fluctuations

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Other Operating IncomeRs. mnQ4 FY22Q4 FY21YoYgr.FY22FY21YoYgr.Export Incentive98 98 -0.1%470 1,164 -59.7%Exchange Rate Fluctuations582 1,553 Processing Income76 64 18.8%309 237 30.4%Others464 732 -36.7%2,044 1,384 47.7%Total other operating income1,220 894 36.4%4,376 2,785 57.1%Other IncomeRs. mnQ4 FY22Q4 FY21YoYgr.FY22FY21YoYgr.Dividend and Interest Income269 69 288.8%696 499 39.3%Exchange Rate Fluctuations200 104 92.3%646 121 433.9%Profit on sale of Investments240 10 2385.2%751 89 747.6%Others82 -487 116.8%155 -252 161.3%Total other income791 -304 360.5%2,247 456 392.4%Details of foreign exchange fluctuationsRs. mnQ4 FY22Q4 FY21YoYgr.FY22FY21YoYgr.A. On operating transactions (above EBIDTA line)-516 84 -713.7%-1,468 164 -995.6%a. Included in other operating income-582 - -1,553 - b. Included in cost of goods66 50 31.4%85 19 350.0%c. Included in other operating expenses- 34 -100.0%- 145 -100.0%B. On other non-operating income-200 -104 -92.3%-646 -121 -433.9%C. On foreign currency borrowings (part of interest cost)71 12 491.7%71 -53 234.0%Total Foreign Currency Fluctuations (+ = loss, - = gain)-645 -8 -8066.5%-2,043 -10 -20127.2%Thank you

For any queries, please contact Arvind Bothra Arvind.Bothra@zyduslife.com +91-79-71800839

For more information, please visit www.zyduslife.com

Registered Office:

Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, Sarkhej-Gandhinagar Highway, Ahmedabad – 382 481 Gujarat, India