ZOTANSE10 June 2022

Zota Health Care LImited has informed the Exchange about Investor Presentation

Zota Health Care LImited

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i-zoto'

healthcare ltd.

)une L0, 2022

To, The Manager Listing Department, The National Stock Exchange of lndia [imited Exchange Plaza,

Band ra Kurla Complex, Bandra (E), Mumbai - 400051

Dear Sir/Madam,

Trading Symbol: ZOTA

Sub: lnvestor Presentation

Ref: Regulation 30 of sEBl (tisting obligations and Disclosure Requirements) Retulations, 2015

With reference to the captioned subject we, Zota Health Care Limited are submittlng herewith enclosed the lnvestor Presentation in respect of Audited Financial Results for the quarter and year ended March 3L,2022.

This is for your information and record.

Thanking you,

Yours faithfully,

For Zota Health Care Limited

l,n- Nj}Y'

Ashvin Variya (Company Secretary & Compliance Officer) Place: Surat

Encl: a/a

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-$ 6n lr,o <() t-( Q'-f',

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Registered office : zotq House. 2/896. Hiro Modi street Sqgrqmpuro. Surot - 195 OO2 I Ph: +91 261 2331601 Emoll info@zotaheolthcorecom Web : wwwzotqheolthcore.conn

Plont : Plot no.169, Surot Specio Economic Zone, Nr Sochin Rqiwoy Stotion, Sochin, Surot 394 23O (Guj) ndio ph. +91 261 2397122

ctN L2423tGJ2000PLCO3a352

Q4FY22

P E R F O R M A N C E H I G H L I G H T S

J U N E 2 0 2 2

Safe Harbour

This presentation has been prepared by the Zota Health Care Limited (the “Company”) only for information purpose to the stakeholders and does not contain any offer or invitation to subscribe the securities of the Company. No offering of securities shall be made except by means of offer documents.

This presentation has been prepared on the basis of information and data available with the Company consider reliable. This presentation may not contain all the information that you may consider material. Any liability in respect of the content of or any omission from this presentation is expressly excluded.

Stakeholders are advice to compare the data provided in the presentation with the full financial results available on the website of the Company as well as on website of NSE.

This presentation contains “forward looking statement”, including “future oriented financial information” and “financial outlook”. This forward looking statement is based on management’s current expectations and belief, and subject to uncertainty. Actual result may be vary from the material facts contained in this presentation due to changes in government policies, regulations, economics reforms, natural calamities, competition, technology, etc. Company is not under obligation to inform any update or alter in forward looking statement, whether as a result of any new information or future events

z o t a h e a l t h c a r e . c o m

Table Of Contents

z o t a h e a l t h c a r e . c o m

RESULT HIGHLIGHTS

OPERATIONAL METRICS

DAVAINDIA

BUSINESS OUTLOOK & STRATEGY

FINANCIAL SUMMARY

Q4FY22- Result Highlights

z o t a h e a l t h c a r e . c o m

Stand Quarterly Financial Highlights

Q-o-Q

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

3,175.26

Q4-FY22

26.12%

Q4-FY22

36.45

Q4-FY22

34.74

3,093.88

Q3-FY22

39.93%

Q3-FY22

516.50

Q3-FY22

354.23

Q4-FY22

Q3-FY22

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

Q4-FY22

Q4-FY21

3,175.26

Q4-FY22

26.12%

Q4-FY22

36.45

Q4-FY22

34.74

3,064.26

Q4-FY21

29.57%

Q4-FY21

-14.24

Q4-FY21

-68.07

z o t a h e a l t h c a r e . c o m

Stand Annual Financial Highlights

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

FY22

FY21

13,153.33

10,684.12

FY22

FY21

33.45%

31.35%

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

FY22

1,534.95

FY22

1,058.01

FY21

67.56

FY21

-16.24

z o t a h e a l t h c a r e . c o m

Revenue Break up – Quarterly

Domestic Sales

Dava India Sales

Export Sales (SEZ)

1,501.1

1023.8

1,013.4

1,452.6

910.4

768.7

739.5

650.4

1,282.2

Q 4 - F Y 2 1

Q 3 - F Y 2 2

Q 4 - F Y 2 2

Q 4 - F Y 2 1

Q 3 - F Y 2 2

Q 4 - F Y 2 2

Q 3 - F Y 2 1

Q 3 - F Y 2 2

Q 4 - F Y 2 2

z o t a h e a l t h c a r e . c o m

FY- Result Highlights

z o t a h e a l t h c a r e . c o m

Stand Profit & Loss Statement - Quarterly

Particulars (Rs Lakhs)

Export Sales (SEZ) Dava India Sales Domestic Sales Revenues from Operations Cost of Goods Sold Gross Profit % Margin Operational Exp Employee cost Other expenses Operating Profit % Margin Other Income EBITDA % Margin Depreciation EBIT % Margin Interest Cost EBT % Margin Taxes Profit After Taxes % Margin

Q4FY22

Q3FY22

650.39 1023.78 1501.09 3,175.26 2,346.30 828.96 26.11% 792.78 256.03 536.75 36.18 1.14% 82.39 118.57 3.73% 69.84 48.73 1.53% 3.93 44.80 1.41% 24.77 34.74 1.09%

739.54 910.38 1452.56 3,093.88 1,858.51 1235.37 39.93% 718.87 244.93 473.94 516.50 16.69% 33.64 550.14 17.78% 75.51 474.63 15.34% 1.31 473.32 15.30% 125.00 354.23 11.45%

YoY %

-36% 33% 17% 4% 9% -9% -346 bps -14% 0% -19% 354% +160 bps 235% -1042% +340 bps -19% 164% +400 bps -26% 155% +405 bps -291% 151% +332 bps

QoQ %

-12% 12% 3% 3% 26% -33% -1382 bps 10% 5% 13% -93% -1555 bps 145% -78% -1405 bps -8% -90% -1381 bps 200% -91% -1389 bps -80% -90% -1036 bps

Q4FY21

1,013.4 768.7 1,282.2 3,064.26 2,158.19 906.07 29.57% 920.31 255.08 665.23 -14.24 -0.46% 24.62 10.38 0.34% 86.05 -75.67 -2.47% 5.33 -81.00 -2.64% -12.94 -68.07 -2.22%

z o t a h e a l t h c a r e . c o m

Management Commentary

The Company reported a flattish growth in Revenues in Q4FY22, primarily due to lower export sales.

The Company has registered a decrease in gross margins from 39.93% in Q3FY22 to 26.12% in Q4FY22 subdued performance on export front, further affected by rising input costs – primarily API’s .

Exports performance suffered a 12% decline QoQ and 36% YoY, due to prolonged container shortages, logistical challenges and rising lead times.

The sales contribution from new-age business stood at 53% in Q4FY22 as compared to 53% in Q3FY22 and 58% in Q4FY21.

EBITDA stood at Rs 118.57 Lakhs, with margins at 3.73% due to compression in GPM primarily affected by export segment.

PAT stood at Rs. 34.74 Lakhs, increasing 151% YoY basis and declining 90% QoQ basis.

010

z o t a h e a l t h c a r e . c o m

Management Commentary

DOMESTIC OPERATIONS

Domestic Revenues registered a marginal increase of 6.85% QoQ and a growth of 23.11% YoY at ₹ 2524.87 Lakhs supported by healthy performance on both fronts.

EBITDA at ₹ 78.26 Lakhs for Q4FY22, backed by strong recovery in demand of Prescription Based Drugs.

*Domestic Operations includes the operations of Davaindia.

EXPORTS

PAT stood at ₹ 40.44 Lakhs for Q4FY22.

Exports revenues declined 12% on QoQ basis and 36% YoY at ₹ 650.39 Lakhs in Q4FY22.

EBITDA at ₹ 40.31 Lakhs for Q4FY22, in line with the decrease in export sales volume.

PAT stood at ₹ (5.70) Lakhs for Q4FY22.

z o t a h e a l t h c a r e . c o m

Davaindia Generic Pharmacy

z o t a h e a l t h c a r e . c o m

Davaindia Key Figures

Gross Mercantile Value (GMV)

Total GMV of Davaindia Stores stood at 1711 Lakhs during Q4FY22 up 14% QoQ

No. of SKU’s

New Stores rolled-out

1,644

1,614

1,585

1,503

Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22

13 13

z o t a h e a l t h c a r e . c o m

Davaindia Key Figures

Average Wallet Spend

No. of Customers Served

2 6 7

2 3 7

2 2 9

2 2 0

2 0 9

2 0 4

1 8 1

1 5 9

1 6 4

6 , 4 1 , 7 1 2

5 , 6 8 , 1 8 3

5 , 4 0 , 9 2 4

4 , 7 3 , 1 8 1

4 , 4 0 , 4 5 8

3 , 3 8 , 4 1 5

3 , 5 2 , 6 2 3

3 , 2 3 , 3 9 5

2 , 7 5 , 5 2 0

Q 4 - F Y 2 0

Q 1 - F Y 2 1

Q 2 - F Y 2 1

Q 3 - F Y 2 1

Q 4 - F Y 2 1

Q 1 - F Y 2 2

Q 2 - F Y 2 2

Q 3 - F Y 2 2

Q 4 - F Y 2 2

Q 4 - F Y 2 0

Q 1 - F Y 2 1

Q 2 - F Y 2 1

Q 3 - F Y 2 1

Q 4 - F Y 2 1

Q 1 - F Y 2 2

Q 2 - F Y 2 2

Q 3 - F Y 2 2

Q 4 - F Y 2 2

z o t a h e a l t h c a r e . c o m

Davaindia- Generic Pharmacy

During the quarter Davaindia has catered to the highest-ever number of customer i.e. 6.42 lakhs against 5.68 lakhs in the previous quarter. Coupled with increasing Average Wallet Spends which stood at 267 against 237 in the previous quarter.

Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. As of FY22, Davaindia has catered to more than 5.29 million happy customers.

Davaindia retail pharmacy stores’ focus continues to be chronic ailments – Cardiac, Diabetic, Thyroid, among others – as repeat orders from existing and new customers remain high, thus aiding the overall growth of Davaindia's business model.

Davaindia expansions continues, in Q4FY22, the Company rolled-out 11 COCO stores on a base of 6 stores in the previous quarter. The Company will pursue rapid store growth on the COCO front. The Company also rolled out additional 40 FOFO stores, taking the total FOFO count to 497, and the total store count to 514.

The company has adopted various advertisements, marketing, and promotional channels like Print, TV, Digital, and Outdoor mediums to increases top-of-the mind brand recall in the minds of its customers. This exercise that begun to gain traction and has led to footfall & wallet share increase among its users.

A higher number of SKU’s i.e. 1,644 has enabled Davaindia to better serve customers across all segments. Thus, increasing its customer spends across varied price points, the Average Wallet Spend was ₹267 in Q4FY22.

z o t a h e a l t h c a r e . c o m

Davaindia- Generic Pharmacy

z o t a h e a l t h c a r e . c o m

Davaindia- COCO Stores

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Operational FOFO Stores

497

OPERATIONAL FOFO STORES AS ON 31.03.2022

Legend

Franchise Owned Franchise Operated (FOFO) Stores

States

Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu And Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Meghalaya Odisha Punjab Rajasthan Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal

No. of Stores

1 7 15 2 31 1 55 27 1 2 7 10 16 68 50 1 45 3 23 6 7 5 85 6 23

z o t a h e a l t h c a r e . c o m

Operational COCO Stores

OPERATIONAL COCO STORES AS ON 31.03.2022

State

Gujarat Haryana Maharashtra Rajasthan Delhi

No. of Stores

7 2 4 3 1

Legend

Company Owned Company Operated (COCO) Stores

Operated by wholly-owned subsidiary Davaindia Health Mart Limited

z o t a h e a l t h c a r e . c o m

Management Commentary

Commenting on Q4FY22 financial performance and operational highlights, Management Team of Zota Health Care said,

“The Company's performance for Q4FY22 has been significantly affected due to the prolonged supply-chain disruption in our export business. During the quarter under review, our export business registered a decline in Revenue from Operations on both YoY and QoQ basis, primarily due to increasing port congestions, prolonged container shortages, and rising lead times. Higher export freight and rising input cost, especially APIs, have further dampened our profitability during the quarter.

Our domestic and Davaindia front performance continues to do well during the quarter under review. Our Davaindia sales crossed an important benchmark of 10+ crore quarterly sales, and we expect this trend to continue as the Company rolls out more stores each quarter. During the quarter, we significantly expanded our COCO footprint, with an additional 11 stores spread across four states. COCO stores have the potential to generate higher sales and contribute to better margins. We also expect Average Wallet Spends to accelerate further as we witness a higher contribution from COCO stores, since COCO stores allow the Company to present its full breadth of product portfolio to potential customers.

The Company is also making good progress in optimizing its supply chain, with a new, fully-automated, central warehouse in Surat setup under a strategic partnership. Basis the success of this warehouse, the Company will evaluate further on this front. To conclude, your Company is fully geared to capture the tremendous opportunity of the generic pharmacies in India."”

z o t a h e a l t h c a r e . c o m

Industry Snapshot & Business Strategy

z o t a h e a l t h c a r e . c o m

Retail Generic Medicine Landscape in India

To achieve the objective of making available quality generic medicines at affordable prices to all, ‘Jan Aushadhi Scheme’ was launched by the Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, Government of India across the county. The scheme was later renamed to Pradhan Mantri Bhartiya Janaushadhi Pariyojna (PMBJP)

Objectives of PMBJP

Savings to the common man

Strong Implementation

• To make available quality medicines consumables and surgical items at affordable prices for all and thereby reduce out of pocket expenditure of consumers/patients.

• To popularize generic medicines

among the masses and dispel the prevalent notion that low priced generic medicines are of inferior quality or are less effective.

• Generate employment by

engaging individual entrepreneurs in the opening of PMBJP Kendras.

• A medicine under PMBJP is priced on the principle of a maximum of 50% of the average price of the top three branded medicines. Therefore, the price of Jan Aushadhi Medicines is cheaper at least by 50% and in some cases, by 80% to 90% of the market price of branded medicines.

• The Product Basket of the scheme

now covers more than 1,449 medicines and 204 surgical & consumables.

• Presence in all major therapeutic categories such as Anti-infective, Anti-allergic, Anti-diabetics, Cardiovascular, Anti-cancers, Gastro- intestinal medicines, etc.

• As on 24/06/2021, 7,855 PMBJP

Kendras are functional in the country. Pradhan Mantri Bhartiya Janaushadhi Pariyojana has marked its presence in almost every district of India by covering 732 districts out of 734.

z o t a h e a l t h c a r e . c o m

Impact of PMBJP

In the financial year (2019-20), PMBJP has achieved sales of ₹258 crores (at MRP), up to 30-11-2019. This has led to savings of approximately ₹1,800 crores of the common citizens of the country.

Growth in number of stores

Growth in turnover

Product basket

Price of Janaushadhi medicines to branded medicines

(Number of stores as on 31st March of the year)

(Sales value in crore)

(No of Medicines)

5,928

5,140

3,322

315 303

900

371

700

600

488

141

1,080

269

2 0 1 3 - 1 4

2 0 1 4 - 1 5

2 0 1 5 - 1 6

2 0 1 6 - 1 7

2 0 1 7 - 1 8

2 0 1 8 - 1 9

2 0 1 9 - 2 0

2 0 1 4 - 1 5

2 0 1 5 - 1 6

2 0 1 6 - 1 7

2 0 1 7 - 1 8

2 0 1 8 - 1 9

2 0 1 9 - 2 0

2 0 1 6 - 1 7

2 0 1 7 - 1 8

2 0 1 8 - 1 9

2 0 1 9 - 2 0

Note : 2019-20 – till 31/12/2019

295

5 0 %

C h e a p e

b y

141

7 0 - 8 0 %

C h e a p e

b y

6 0 - 7 0 %

C h e a p e

b y

8 0 - 9 0 %

C h e a p e

b y

z o t a h e a l t h c a r e . c o m

Underpenetrated Generic Medicine Market

4 pillars to drive healthcare

4 As of healthcare

Branded and generic mix of Indian pharma market (%)

Overall India

Urban India

Rural India

Accessibility

Affordability

Awarness

Aliments

• Setting up of new

• Higher per capita

• Rising literacy

• Growing incidence

hospitals

income

• Higher number of

• Rising insurance

doctors

penetration

• Government

initiatives

• Cost advantage of

India

of non- communicable diseases

• Growing

urbanization

Generic GX

Branded GX

Source : CLSA

Source : IQVIA, CLSA

z o t a h e a l t h c a r e . c o m

Financial Summary

z o t a h e a l t h c a r e . c o m

Profit & Loss Statement

Particulars (INR Lakhs)

Income from Operations

Other Income

Total Income

Operating Expenses

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

PBT

Margin %

Tax

PAT

Margin %

EPS

FY15

5,646.3

1.4

5,647.8

4,796.5

851.3

15.1

150.6

700.7

12.4

66.5

634.2

11.2

207.6

426.7

7.6

3.0

FY16

6,473.3

7.7

6,481.0

5,516.8

964.2

14.9

123.5

840.8

13.0

68.3

772.4

11.9

261.5

510.9

7.9

3.6

FY17

7,158.0

5.6

7,163.6

6,153.8

1,009.8

14.1

105.4

904.4

12.6

68.2

836.2

11.7

282.1

554.1

7.7

3.9

FY18

7,785.2

151.9

7,937.0

6,695.0

1,242.0

16.0

93.7

1,148.3

14.8

12.1

1,136.2

14.6

407.4

726.8

9.3

4.2

FY19

8,562.9

154.5

8,717.4

7,788.7

928.7

10.8

139.4

789.3

9.2

3.7

785.6

9.2

230.7

554.8

6.5

2.3

FY20

9,511.3

151.3

9,662.6

9,059.7

602.9

6.3

209.8

393.1

4.1

6.9

386.2

4.1

112.0

274.1

2.9

1.1

FY21

FY22

10,684.12

125.66 10,809.78

10,490.90

193.22 1.8

316.68

-123.46 -1.2

10.97

-134.43 -1.3

-15.3

-16.24 -0.2

-0.07

13,153.33

164.56 13,317.89

11,453.82

1,699.51 12.9

273.05

1,426.46 10.8

7.32

1,419.14 10.8

376.56

1,058.01 8.0

4.25

z o t a h e a l t h c a r e . c o m

Balance Sheet & Key Ratios

Particulars (INR Lakhs)

Share capital

Reserves and Surplus

Non-current liabilities

Current liabilities

Total Equity and Liabilities

Non-current assets

Current assets

Total Assets

Key Ratios

RoCE (%)

RoE (%)

Net debt to equity (x)

Interest coverage (x)

Inventory days

Receivables days

Payable days

FY14

1,196.9

384.2

521.3

1,381.7

3,484.1

926.3

2,557.8

3,484.1

FY14

17.4

19.7

0.3

7.5

91.2

77.8

109.0

FY15

1,436.3

395.7

548.7

1,657.6

4,038.4

842.4

3,196.0

4,038.4

FY15

20.0

23.3

0.3

10.5

113.9

75.6

116.2

FY16

1,436.3

707.8

272.7

1,988.3

4,405.2

855.6

3,549.5

4,405.2

FY16

23.5

23.8

0.1

12.3

92.1

89.0

126.5

FY17

1,436.3

1,262.0

466.8

2,215.4

5,380.5

932.5

4,447.9

5,380.5

FY17

19.3

20.5

0.1

13.3

121.9

87.1

148.4

FY18

1,754.3

5,223.4

64.7

2,137.0

9,179.4

3,605.4

5,574.1

9,179.4

FY18

10.5

10.4

0.0

94.8

113.8

107.5

117.8

FY19

1,754.3

5,138.2

87.1

1,981.0

8,960.7

2,723.3

6,237.4

8,960.7

FY20

2,456.0

4,426.9

105.3

1,859.6

8,847.9

2,961.4

5,886.4

8,847.8

FY21

2456.03 4,181.2

94.5

1,820.0

8,551.6

2438.13

6,113.5

8,551.6

FY19

FY20

FY21

8.0

0.0

214.5

138.6

94.2

103.5

4.0

0.0

56.6

97.2

111.8

82.5

-1.8

-0.2

0.0

-11.3

96.1

98.5

77.6

FY22

2,516.03

6,621.4

102.9

3,287.63

12,527.93

5007.36

7520.57

12,527.93

FY22

15.4

11.6

0.0

194.9

77.6

106.3

76.4

z o t a h e a l t h c a r e . c o m

Thank You

Contact Information Mr. Himanshu Zota / Mr. Ashvin Variya

"ZOTA HOUSE", 2/896, Hira Modi Street, Sagrampura, Surat-395 002(Gujarat)

cszota@zotahealthcare.com

www.zotahealthcare.com

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