ZOTANSE17 September 2022

Zota Health Care LImited has informed the Exchange about Investor Presentation

Zota Health Care LImited

September 17, 2022

To, The Manager Listing Department, The National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400051

Dear Sir/Madam,

Trading Symbol: ZOTA

Sub: Investor Presentation

Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

With reference to the captioned subject we, Zota Health Care Limited are submitting herewith enclosed the Investor Presentation in respect of Unaudited Financial Results for the quarter ended June 30, 2022.

This is for your information and record.

Thanking you,

Yours faithfully,

For Zota Health Care Limited

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

Encl: a/a

Registered Office: Zota House, 2/896, Hira Modi Street, Sagrampura, Surat-395002 Ph: +91 261 2331601 Email: info@zotahealthcare.com Web: www.zotahealthcare.com

CIN: L24231GJ2000PLC038352

Q1FY23

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

S E P T E M B E R 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

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Table Of Contents

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RESULT HIGHLIGHTS

OPERATIONAL METRICS

DAVAINDIA

BUSINESS OUTLOOK & STRATEGY

FINANCIAL SUMMARY

Q1FY23- Result Highlights

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Stand Quarterly Financial Highlights

Q-o-Q

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

2,948.78

Q1-FY23

37.30%

Q1-FY23

206.14

Q1-FY23

146.41

3,175.26

Q4-FY22

26.11%

Q4-FY22

36.18

Q4-FY22

34.74

Q1-FY23

Q4-FY22

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

Q1-FY23

Q1-FY22

2,948.78

Q1-FY23

37.30%

Q1-FY23

206.14

Q1-FY23

146.41

3,344.49

Q1-FY22

34.02%

Q1-FY22

488.62

Q1-FY22

337.41

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Revenue Break up – Quarterly

Domestic Sales

Dava India Sales

Export Sales (SEZ)

1,815.1

1,501.1

1023.8

1019.3

766.6

632.6

650.4

1,162.8

896.8

Q 1 - F Y 2 2

Q 4 - F Y 2 2

Q 1 - F Y 2 3

Q 1 - F Y 2 2

Q 4 - F Y 2 2

Q 1 - F Y 2 3

Q 1 - F Y 2 2

Q 4 - F Y 2 2

Q 1 - F Y 2 3

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FY- Result Highlights

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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

Q1FY23

Q4FY22

766.6 1019.3 1162.8 2,948.78 1,848.88 1099.90 37.30% 893.76 256.59 637.17 206.14 6.99% 54.18 260.32 8.83% 55.96 204.36 6.93% 1.64 202.72 6.87% 47.37 146.41 4.97%

650.3 1023.8 1501.1 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%

YoY %

21% 14% -36% -12% -16% -3% 328 BPS 38% -2% 64% 58% -762 BPS 78% 50% -669 BPS -9% 55% -675 BPS 86% 56% -678 BPS -60% 57% -512 BPS

QoQ %

18% 0% -23% -7% -21% 33% 1119 BPS 13% 0% 19% 470% 585 BPS -34% 120% 509 BPS -20% 319% 540 BPS -58% 353% 546 BPS 91% 321% 387 BPS

Q1FY22

632.6 896.8 1,815.1 3,344.49 2,206.54 1137.95 34.02% 649.33 261.33 388.00 488.62 14.61% 30.48 519.10 15.52% 61.68 457.42 13.68% 0.88 456.54 13.65% 119.13 337.41 10.09%

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Management Commentary

The Company reported a decline in Revenues in Q1FY22, primarily on account of lower Domestic Sales and flat Dava India Sales.

Domestic Sales reported a decline of 36% YoY and 23% QoQ, while exports performance continues to suffer due to prolonged container shortages, logistical challenges and rising lead times.

The sales contribution from new-age business stood at 61% in Q1FY23 as compared to 53% in Q4FY22 and 46% in Q1FY22.

The Company has registered an increase in gross margins from 26.11% in Q4FY22 to 37.30% in Q1FY23.

EBITDA stood at Rs 260.32 Lakhs, with margins at 8.83% driven by an increase in Gross Margins.

PAT stood at Rs. 146.41 Lakhs, increasing 57% YoY basis and declining 321% QoQ basis.

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Management Commentary

DOMESTIC OPERATIONS

Domestic Revenues registered a decline of 13.60% QoQ and 19.55% YoY at ₹ 2182.14 Lakhs on account of lower dispatch due to warehouse shifting.

EBITDA at ₹ 180.80 Lakhs for Q1FY23.

PAT stood at ₹ 105.24 Lakhs for Q1FY23.

*Domestic Operations includes the operations of Davaindia.

EXPORTS

Exports revenues increased 18% on QoQ basis and 21% YoY at ₹ 766.64 Lakhs in Q1FY23.

EBITDA at ₹ 79.53 Lakhs for Q1FY223.

PAT stood at ₹ 41.17 Lakhs for Q1FY23.

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Davaindia Generic Pharmacy

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Davaindia Key Figures

Gross Mercantile Value (GMV)

Total GMV of Davaindia Stores stood at 1,595 Lakhs during Q1FY23 down 7% QoQ

No. of SKU’s

New Stores rolled-out

1,653

1,644

1,614

1,585

Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23

12 12

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Davaindia Key Figures

Average Wallet Spend

No. of Customers Served

2 6 7 2 4 8

2 3 7

2 2 9

2 2 0

2 0 9

2 0 4

1 8 1

1 6 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

6 , 4 1 , 7 1 2

6 , 4 3 , 1 2 0

5 , 6 8 , 1 8 3

5 , 4 0 , 9 2 4

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 1 - F Y 2 3

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 1 - F Y 2 3

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Davaindia- Generic Pharmacy

During the quarter Davaindia has catered to the highest-ever number of customer i.e. 6.43 lakhs against 6.42 lakhs in the previous quarter. The Company witnessed a slight decrease in Average Wallet Spends which stood at 248 against 267 in the previous quarter.

Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. As of Q1FY23, Davaindia has catered to more than 5.93 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 aggressively, in Q1FY23, the Company rolled-out 19 COCO stores on a base of 17 stores in the previous quarter. The Company will pursue rapid store roll- out on the COCO front. The Company also rolled out additional 40 FOFO stores, taking the total FOFO count to 537, and the total store count to 573.

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. 1,653 has enabled Davaindia to better serve customers across all segments. Thus, increasing its customer spends across varied price points, the Average Wallet Spend was ₹248 in Q1FY23.

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Davaindia- Generic Pharmacy

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Davaindia- COCO Stores

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Operational FOFO Stores

537

OPERATIONAL FOFO STORES AS ON 30.06.2022

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 16 2 32 1 55 30 1 3 7 10 17 68 52 1 50 3 27 10 7 5 98 6 28

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Operational COCO Stores

OPERATIONAL COCO STORES AS ON 30.06.2022

State

Gujarat Haryana Maharashtra Rajasthan Delhi Madhya Pradesh Uttar Pradesh

No. of Stores

12 2 11 4 3 1 3

Legend

Company Owned Company Operated (COCO) Stores

Operated by wholly-owned subsidiary Davaindia Health Mart Limited

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Management Commentary

Commenting on Q1FY23 financial performance and operational highlights, Management Team of Zota Health Care said,

“Zota Health Care’s Q1FY23 performance was subdued due to lower dispatches on the Domestic sales front. During the quarter, the Company shifted to a new third-party state-of-art modern central warehouse. Due to the shifting at the new warehouse & getting accustomed to new systems, the Company witnessed slower dispatches in April. However, the dispatches have picked up during the balance quarter, and operations have normalised. Thus, both Dava India and Domestic business sales were lower than expected during Q1FY23. On the Export front, the Company continues to face supply-chain and logistic issues, which is expected to continue for another quarter. Work on new product registrations is progressing well, and the Company’s marketing team is aggressively working on lead generation for recently registered products.

During the quarter, the Company rolled out 59 new stores, 19 of which were COCO stores. The response for COCO stores is particularly good, and the Company will keep expanding in this category. Some new states were also targeted for COCO stores during the quarter, such as Madhya Pradesh and Uttar Pradesh. The Company has also rolled out two pilot COCO stores at Indian Oil Corporation Petrol Pumps in Delhi, a new store format the Company is working on. On the FOFO stores, the Company rolled out 40 new stores, and the total FOFO stores stood at 537 at the end of Q1FY23, covering almost the entirety of India, barding a few East India states. To conclude, your Company is fully geared up to capture the tremendous opportunity of the generic pharmacies in India.”

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Industry Snapshot & Business Strategy

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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.

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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

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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

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Financial Summary

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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

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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

2,516.0

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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