Zydus Lifesciences Limited has informed the Exchange about Investor Presentation on the unaudited financial results for thequarter / half year ended on September 30, 2022

November 11, 2022

Listing Department BSE 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 unaudited financial results for the quarter / half year ended on September 30, 2022.

Please find the same in order.

Thanking you,

Yours faithfully, For, ZYDUS LIFESCIENCES LIMITED

DHAVAL N. SONI COMPANY SECRETARY

Encl.: As above

Zydus Lifesciences Limited Earnings Presentation 11th November, 2022

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Disclaimer and Safe Harbor Statement

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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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Q2 FY23: At a Glance

Revenues from Operations*

Rs. 41,347 mn 10% YoY

R&D

Highlights of Q2 FY23

Rs. 2,534 mn 6.1% of revenues

❑ Ex-COVID related business, total revenues grew 15% yoy.

❑ India formulations business continued to progress well (up 11% yoy, ex-

COVID) with market share gain in key therapies.

EBITDA & Margin %

Net Profit

❑ Consumer Wellness business continued to post double digit growth.

Rs. 8,153 mn 19.7% of revenues 9%YoY

Rs. 5,225 mn

❑ US formulations business continued to deliver sequential improvement

in revenues, aided by new launches.

❑ EBITDA margin adjusted for COVID related inventory provision stood at

22.6%.

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

❑ Net debt: Rs. 5,384 mn (at 30-Sep’22) vs (-)Rs. 632 mn (at 31-Mar’22).

-11%-17%

-8%

-5%

Total 39,427 8%

16%

4%

12%

❑ Capex (organic) for the quarter: Rs. 2,157 mn.

Moraiya receives EIR with VAI status

❑ Earlier, the USFDA inspected the facility from 26th July to 5th

August,2022 which concluded with four Form 483 observations.

❑ Post receipt of EIR with VAI classification, the inspection stands closed.

Note: * Revenues from Operations include Net Sales and Other Operating Income.

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India Form12,648 ConsumerWellness4,227 US17,084 EM3,308 EU541 API1,117 Alliances502 Key Financial Metrics (1/2)

Total Revenues (Rs. mn)

Gross Profit (Rs. mn) and Gross Margin % *

64.9%

63.4%

65.0%

62.9%

64.3%

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

EBITDA (Rs. mn) and EBITDA Margin % *

5.9%

7.0%

7.0%

7.0%

6.1%

25.0%

20.6%

22.3%

20.5%

22.6%

* Excludes COVID related inventory provision.

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24,385 23,064 25,114 25,634 26,606 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY239,393 7,516 8,612 8,330 9,356 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY232,222 2,553 2,697 2,842 2,534 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY2337,598 36,398 38,638 40,727 41,347 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23Key Financial Metrics (2/2)

PAT ex. Exceptional, One-offs and Discontinued ops.(Rs. mn)

Organic Capex (Rs. mn)

Net Debt/ EBITDA

Net Working Capital* (Rs. mn)

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

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6,697 5,069 5,250 5,295 6,087 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY232,800 3,100 2,668 2,828 2,157 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY230.11 0.09 -0.02 -0.18 0.17 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY2346,054 48,765 49,219 51,218 53,270 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23India Formulations business

Sustained growth driven by robust performance across key therapies

Highlights for the quarter

Q2 FY23 Revenue Contribution

▪

The business grew by 11% YoY, ex-COVID opportunities, and divested products.

32%

▪ Gained market share and improved ranking in key

therapies viz. cardiovascular, gynecology, respiratory and gastro intestinal on a YoY basis#.

▪

Lipaglyn® stood at 56th position# in Indian Pharma Market (IPM) viz-a-viz 66th rank during Q1 FY23.

Q2 FY23 Gr.

YoY

QoQ

4.2%

12.4%

Brand building - a key growth driver

Therapy-wise Break-up*

Brand Value (Rs. Mn)*

1000+

500 to 1000

250 to 500

# of Brands

12

26

40

*Source: AWACS MAT Sep 22 #Source: AWACS Jul – Sep 22

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12,134 10,785 11,640 11,251 12,648 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23India Formulation Sales (Rs. mn)Anti-infectives13%Cardiac16%Derma5%GI11%Gynae6%Pain10%Respi10%Others29%Consumer Wellness

Maintained growth momentum

Highlights for the quarter

Q2 FY23 Revenue Contribution

▪ Growth during the quarter was led by Glucon-D, Nycil

and EverYuth brands..

11%

▪ Gross margins were under pressure on account of

pricing pressure in key inputs.

Q2 FY23 Gr.

YoY

QoQ

12.0%

-38.9%

Key brands continued to hold dominant market share

▪ Continue to take price hikes at a portfolio level to

mitigate pressure on gross margins.

▪ Gross margins likely to recover over coming quarters.

Brand Name

Market Share#

60.0%

35.0%

95.5%

6.5%

41.8%

75.7%

4.6%

Facial Cleansing *

Scrub

Peel Off

#Source: Nielsen and IQVIA MAT September 2022 report * Facial cleansing segment includes Face wash, Scrub and Peel-off.

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3,774 3,822 6,330 6,916 4,227 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23Consumer Wellness Sales (Rs. mn)US Formulations business

Strengthening position by steady new launches

Highlights for the quarter

$199 mn

$199 mn

$189 mn

$202 mn

$214 mn

Q2 FY23 Revenue Contribution

43%

▪

▪

▪

▪

Received 15 new product approvals (incl. 2 tentative approvals) during the quarter.

Launched 10 new products (incl. g Revlimid) which aided growth momentum.

Filed 3 ANDAs during the quarter.

105 ANDAs pending approval with the USFDA.

Q2 FY23 Gr.

YoY

QoQ

15.9%

9.6%

Continued investment to build the generics pipeline

ANDAs

Q2 FY23

H1 FY23

Cumulative

Filings

Approvals

3

15^

11

22

431

326

^ includes 2 tentative approvals.

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14,734 14,892 14,233 15,592 17,084 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23US Formulation Sales (Rs. mn)Emerging Markets Formulations business

Base business continued to display robust growth

Highlights for the quarter

Q2 FY23 Revenue Contribution

8%

▪

▪

The business grew by 24% YoY, excluding revenue of COVID related products from the base.

The business grew despite challenging political and economic scenario in some of the countries.

Q2 FY23 Gr.

YoY

QoQ

-5.1%

4.8%

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3,487 2,914 2,750 3,155 3,308 Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23EM Formulation Sales (Rs. mn)Updates on Innovation

NCE: Saroglitazar Magnesium

• Submitted the results of hepatic impairment studies of the molecule in NASH and normal PBC patients to USFDA. Hepatic

impairment studies in Cirrhotic Cholestatic patients is going on which is likely to be completed by the end of FY23.

NCE: Desidustat

• Completed Phase IV clinical trials in India in patients with CKD induced anaemia.

• The trials will enroll 1004 patients, half of them being dialysis dependent and the remaining half being independent of

dialysis.

NCE: ZYIL1 (NLRP3 inhibitor)

▪ Achieved a positive Proof-of-Concept in Phase II clinical trials in patients with CAPS which is a rare, life long, auto-

inflammatory condition.

▪ The study demonstrated rapid clinical improvement and remission within days when CAPS patients with flare ups were

treated with ZYIL1.

NCE: ZY19489 (Anti-malarial)

▪ Received regulatory approval to initiate Phase II clinical trials in India.

NASH = Non-Alcoholic Steatohepatitis, PBC = Primary Biliary Cholangitis, CKD = Chronic Kidney Disease, CAPS = Cryopyrin Associated Periodic Syndrome

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Zydus at a Glance

>$2 bn

Global Revenues1

5th

Largest generic Co. in US in terms of prescription3

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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 US4

1st

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

$5.5 1st bn

Market Capitalization2

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Brands among Top 300 in India5

1st 1st

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

35 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.

In FY22, assuming exchange rate of Rs. 74.5 per USD As on 9th November,2022, exchange rate of Rs. 82 per USD IQVIA MAT September 2022 TRx

4. IQVIA MAT September 2022 TRx 5. As per AWACS MAT September 2022

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Consolidated Financial Performance (reported)

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•

Comments for Q2 FY23

Adjusted for COVID related sales

in Q2 FY22, YoY growth in total

income from operations was

15%.

YoY and QoQ decline in GC

margin is largely attributable to

COVID

related

inventory

provision.

YoY growth in other operating

expenses is due to lower base.

Adjusted for inventory provision,

exceptional

items and profit/

(loss)

from

discontinued

operations, Net Profit

for

the

quarter stood at Rs. 6,087 mn,

* Excludes Research related expenses # Discontinued operations refer to expenses incurred in connection with cessation of operations of one of the manufacturing facilities of Zydus Wellness Ltd.

down 9% y-o-y.

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Rs. mnQ2 FY23Q2 FY22YoYgr.Q1FY23QoQgr. H1FY23 H1FY22YoYgr.Total Income from Ops.41,347 37,598 10.0%40,727 1.5%82,074 77,616 5.7%Gross Contribution (GC)25,403 23,988 5.9%25,634 -0.9%51,037 50,456 1.2%Gross Margin %61.4%63.8%62.9%62.2%65.0%Employee benefits expenses *5,998 5,612 6.9%6,042 -0.7%12,040 11,286 6.7%R&D expenses2,534 2,222 14.0%2,842 -10.8%5,376 5,157 4.2%Other operating expenses8,719 7,159 21.8%8,420 3.5%17,139 15,299 12.0%EBITDA8,153 8,995 -9.4%8,330 -2.1%16,483 18,714 -11.9%EBITDA Margin %19.7%23.9%20.5%20.1%24.1%Other Income444 533 -16.7%659 -32.6%1,103 849 29.9%Finance cost351 301 16.6%343 2.3%694 574 20.9%Depreciation and amortization1,818 1,773 2.5%1,807 0.6%3,625 3,506 3.4%PBT before exceptional items6,428 7,454 -13.8%6,839 -6.0%13,267 15,483 -14.3%Exceptional Expenses/ (Incomes)- -1,127 100.0%29 -100.0%29 -1,127 102.6%Profit before Tax6,428 8,581 -25.1%6,810 -5.6%13,238 16,610 -20.3%Tax expenses1,370 1,357 1.0%1,184 15.7%2,554 2,931 -12.9%Share of profit from JVs148 123 20.3%221 -33.0%369 193 91.2%Profit/(loss) from discontinued ops. #55 22,772 -99.8%-83 166.3%-28 22,672 Minority Interest36 96 -62.5%581 -93.8%617 649 -4.9%Reported Net Profit5,225 30,023 -82.6%5,183 0.8%10,408 35,895 -71.0%Details of Exchange Rate Fluctuations

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Rs. mnQ2 FY23Q2 FY22YoYgr. %H1FY23H1FY22YoYgr. %A. On operating transactions (above EBIDTA line)-1,374 -290 -373.7%-2,542 -771 -230.0%a. Included in other operating income-1,294 -263 -392.0%-2,377 -790 -200.9%b. Included in COGS-80 -27 -195.6%-165 20 -947.7%c. Included in other operating expenses- - - - B. On other income-87 -133 34.6%-236 -315 25.1%C. On foreign currency borrowings (part of finance cost)- - 1 - Total Exchange Rate Fluctuations ('+' = loss, '-' = gain)-1,461 -423 -245.3%-2,777 -1,086 -155.9%Q2 FY23 Earnings Call Details

Date: 11th November, 2022, Friday

Time: 3:00 PM IST (Indian Standard Time)

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Thank you

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

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Registered Office:

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