ZIMLABNSE20 May 2023

Zim Laboratories Limited has informed the Exchange about Investor Presentation

Zim Laboratories Limited

Ref No.: ZLL/CS/BM/BSE-NSE

Date : 19.05.2023

BSE Limited, Market Operations Dept. P. J. Towers, Dalal Street, Mumbai- 400 001 Company Code- 541400

Dear Sir,

National Stock Exchange of India Limited Listing Compliance Department Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051 (Symbol - ZIMLAB)

Sub : Investor Presentation May 2023

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find enclosed Investor Presentation May 2023.

Kindly take the intimation on record.

Thanking you,

Yours faithfully,

For ZIM LABORATORIES LIMTED

(Piyush Nikhade) Company Secretary and Compliance Officer Membership No. A38972

Encl : As above.

ZIM LABORATORIES LIMITED __________________________________________________________________________________________ www.zimlab.in I info@zimlab.in I CIN : L99999MH1984PLC032172

Works : B-21/22, MIDC Area, Kalmeshwar – 441 501 Dist. Nagpur Maharashtra, India. Ph. + 91.718.271370 I Fax : +091.7118.271470

Regd. Office : Sadoday Gyan (Ground Floor), Opp. NADT, Nelson Square, Nagpur – 440013. Maharashtra, India. Ph. +091.712.2981960

ZIM Laboratories Limited Investor Presentation May 2023

SAFE HARBOUR

The presentation has been prepared by ZIM Laboratories Limited (“ZIM” or the “Company”) solely for information purposes and does not constitute an offer to sell or recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. By accessing this presentation, you are agreeing to be bound by the trading restrictions.

The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm.

Certain statements contained in this presentation may be statements of the Company’s beliefs, plans and expectations about the future and other forward-looking statements. The forward-looking statements are based on management’s current expectations or beliefs as well as a number of assumptions about the Company’s operations and factors beyond the Company’s control or third-party sources and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this presentation.

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. You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this presentation and any liability in respect of the presentation or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expressly disclaimed.

BUSINESS

05 OVERVIEW

15 INCOME STATEMENT

06 TRANSFORMATION INITIATIVES

16 BALANCE SHEET

07 BUSINESS HIGHLIGHTS

08 FINANCIAL HIGHLIGHTS

13 R&D AT CORE

FINANCIALS

OUTLOOK & FOCUS

CORPORATE

22 OUTLOOK

23 FOCUS : FY24

25 BOARD OF DIRECTORS : ZIM

26 BOARD OF DIRECTORS : ZHTL

27 SUBSIDIARIES

S T N E T N O C

BUSINESS

OVERVIEW

ZIM develops and supplies differentiated generic Pharmaceutical and Nutraceutical products in Finished Formulations (FF) and Pre- Formulation Intermediates (PFI) in certain key therapeutic categories across RoW markets

Our differentiation and value proposition is in our ability to develop and supply combination generic products in the oral solid dosage form, using drug delivery techniques and various non infringing proprietary manufacturing processes

Our core capability is built on the foundation of a strong, experienced in- house R&D set up which provides various delivery solutions that are comprehensive and cover product conceptualisation, product development, clinical studies, dossiers, manufacturing & supplies

We have enhanced our R&D capabilities through our investment in a very experienced team in ZIM Health Technologies Ltd (ZHTL -100% subsidiary)

TRANSFORMATION INITIATIVES

Current Business

Outlook

Pharmaceuticals

Nutraceuticals

Pharmaceuticals; New Innovative Products (NIP)

Nutraceuticals

Generic Products

PFI

FF / OTF

PFI

77% Revenue Contribution

23% Revenue Contribution

New Products (Various Stages of Dossier Completion)

Dossiers filed in the EU

Fillings planned for the FY24

Branded Generics/OTF

85% Export

Attractive Products

Better Margins

Presently catering to the Rest of the World (RoW) Pre-formulation intermediates (PFI) and Finished formulations (FF): unique combinations of generic products with various drug delivery techniques High R&D focus and a strong pipeline of innovative products Marketing ties: local pharma companies and distributors as partners to market the products

New Innovative Products: A Basket of 10 Products Market potential of NIP : USD 500 Mn -1.5 Bn / Product* (Ex-USA); Generic+ Targeted for Key Developed and Pharmerging markets** 2 products filed in the EU; 8 products under development for developed markets; 4 developed market filings planned in FY24 Registrations are expected in 18–24 months from the date of filing Developing specialized Nutraceutical products

*Source(IQVIA)

**Key Developed and Pharmerging Markets: EU, Turkey ,Canada, Australia, BRICS, LATAM, Saudi Arabia and other markets with high GDP / Capita

BUSINESS HIGHLIGHTS

Moving up the Product Value Chain – Developing Value Added Generics

10 New Innovative Products(NIP) in various stages of development; 2 NIP filed in EU under ZIM’s name

Strong and Experienced R&D ; Multiple BE Studies and Dossiers

Comprehensive Dossiers for Key Developed and Pharmerging Markets; Multiple in-house technology platforms; 6.6% of Income invested in FY23

Upgradation of Plant and Equipment : Specific manufacturing units for NIP

Rs 261Mn Gross Block added in FY23; Rs 618Mn invested over last 4 years

Growing Registrations

56 Dossiers filed for registration & 44 products received registration during FY23; 5 Marketing Authorisations received on ZIM’s Dossiers in EU in FY23

Improving Profitability and Reducing Debt

PAT grew at a CAGR of 94.8% over 3 years (FY20-FY23); Total Borrowings reduced to Rs 596Mn in FY23(Rs 899Mn in FY20)

FINANCIAL HIGHLIGHTS

FY23

Q4FY23

Total Operating Income for FY23 was Rs3,985Mn, up 19.5% YoY

Total Operating Income for Q4FY23 was Rs1,054Mn, up 4.4% QoQ

EBITDA for FY23 was Rs584Mn, up 28.7% YoY; EBITDA margins for FY23 were at 14.7% (13.6% in FY22)

EBITDA for Q4FY23 was Rs161Mn, up 3.9% QoQ ; EBITDA margins for Q4FY23 were at 15.3% (15.3% in Q3FY23)

Profit After Tax for FY23 was Rs244Mn, up 67.2% YoY; PAT margins for FY23 were at 6.1% (4.4% in FY22)

Profit After Tax for Q4FY23 was Rs72Mn, up 9.1% QoQ; PAT margins for Q4FY23 were at 6.8% (6.5% in Q3FY23)

Our finance cost for FY23 was at Rs 56Mn vs Rs 83Mn in FY22

Our finance cost for Q4FY23 was at Rs 13Mn (for Q3FY23 was Rs 16Mn)

Gearing was at 30% with total borrowings at Rs596 Mn in FY23

ROCE and ROE for FY23 were 16.8% and 13% vs 12.5% and 8.7% for FY22 resp

Financial figures are as per Consolidated Financials unless otherwise stated in the Presentation

EXPORTS BUSINESS

Exports business for FY23 was Rs 3,382Mn, up 25.2% from Rs 2,701Mn in FY22

Contribution from Exports was 85% of our Total Operating Income

Key regions for Exports during the year were MENA, SE Asia and Africa

MIX % : FY22 375 11%

258 8%

Annual (Rs Mn)

3,382

2,701

Quarterly (Rs Mn)

799

758

733

880

899

845

641

528

2,701 81%

MIX % : FY23

356 9%

246 6%

3382 85%

FY22

FY23

Q1FY22

Q1FY23

Export

Deemed Export

Government/ Domestic

All numbers are in Rs. Mn unless otherwise stated

DOMESTIC BUSINESS

For FY23, our domestic business was Rs 603Mn and comprised 15% of our Total Operating Income

The domestic business includes sale to Central/ State Government, agencies owned by the Government and sale through deemed exports (products billed in India for export by 3rd parties)

MIX % : FY22 (RS. 633 MN)

168 26%

18 3% 46 7%

Our range of OTF products in India are marketed by partners in their brands through ecommerce / online platforms

143 23%

258 41%

The Government business is mainly in pharmaceutical products under the “Jan Aushadhi and CGHS” scheme to ESIC , Railways etc. and comprise of our differentiated and high margin generic products that provide certain benchmark threshold of net contribution %

Our continued focus on high margin business under central government schemes (Jan Aushadhi & CGHS – ESIC railway) resulted in increase in the mix of this business to Rs 200Mn in FY23 from Rs 168Mn in FY22

Within the domestic business, the relatively lower net margin business from Deemed Exports has marginally reduced from Rs 258Mn in FY22 to Rs 246Mn in FY23

MIX % : FY23 (RS. 603 MN)

37 6%

36 6%

200 33%

84 14%

Deemed Export Others Jan Aushadhi & CGHS - ESIC & Railway

246 41%

State Govt. ODS

All numbers are in Rs. Mn unless otherwise stated

ORAL THIN FILMS

During FY 23, we received Marketing Authorisation (MA) for EU market – Sildenafil Citrate in Spain. Several other products - Melatonin, Ondansetron, Vitamin D3, Methyl cobalamin, Levocetirizine, Sildenafil, Tadalafil etc. in various strengths have also received approvals and been commercialized across ROW

Our partners received 4 Marketing Authorisations; in the Netherlands, Croatia, Czech Republic and Malta for marketing Sildenafil Citrate 50 mg OTF dosage; registration on ZIM’s Dossier (this is in addition to the MA granted for Rizatriptan OTF dosage for EU)

Opioid Analgesic product (In Sublingual film form), co-development project completed successfully & final dossier has been submitted by our Business partner to Health & regulatory authorities in the EU; Manufacturing and Supply to follow after registration is received

Our Marketing partner in Canada has filed for registration on ZIM’s dossier for Antiemetic product (In Orally disintegrating strip form)

We successfully launched Vitamin D3 ODS combination products with our partner in Italy; 3 Rx product registrations filed by our partner in Italy on ZIM’s dossiers

Our OTF plant is EU-GMP and NSF ANSI 455-2 accredited and scalable for business across markets

Nutraceutical Supplement products have also been developed using the OTF platform and these products are being presently marketed through eCommerce / OTC platforms. Some of these products are likely to be filed for OTC registration in USA, EU and across developed markets

12% CAGR of OTF business over

the 3 years (FY20-FY23)

Marketing Authorisations received by our partners in EU on ZIM’s dossiers in FY23

BUSINESS MIX : MARKETS AND PRODUCTS

Region Wise Revenue Mix

26%

23%

37%

19%

25%

12%

17%

27%

FY20

FY21

21%

22%

13%

24%

19%

FY22

18%

14%

22%

31%

15%

FY23

India

Asia (ex india)

Africa Middle East Others

% Concentration of Top 10 Pharmaceutical Products

57%

FY23

FY22

FY21

FY20

50%

49%

Diversified Geographical Mix; Hedge against adverse geo-political risks

Focus shifting to developed markets in the EU and Pharmerging markets like LATAM, Brazil, Australia, CIS countries, South Africa, Philippines and Vietnam

Consolidating our top differentiated product offerings to improve economies of scale and strengthen the core business

R&D AT CORE

Focus on using Differentiated Drug Delivery techniques Non – infringing development and manufacturing process using various technology platforms –

- Micro - Emulsion Coating Technology (MECT) - Pellet Cold Forming Technology (PCFT) - Rapid Gelation Drug Release Technology (RGDRT) - Matrix Pore Forming Tablet Technology (MAPOTAB)

89 Member R&D Team ; 4 PhDs ; 71 post graduate professionals

Marketing Authorisations granted on ZIM’s dossiers in EU in FY23

Patents Granted

Under Examination

R&D Expense Mix % Total R&D Spend as % of Total Operating Income

16%

6.5%

80%

8% 6%

5.3%

86%

24%

7.1%

71%

21%

6.6%

71%

Versatile technology platforms developed for Pharmaceuticals and Nutraceuticals

Rs 843 Mn

Spent over last 4 years on Opex, Facility and BE Studies

FY20

FY21

FY22

FY23

Total R&D Spend as % of Total Operating Income

Capital Expenses on BE study

Capital Expenses on Infrastructure & Equipment

R&D Expenses in P&L (Employee;Material,BE-Study etc.)

FINANCIAL OVERVIEW

INCOME STATEMENT

Particulars (Rs Mn)

Total Operating Income

Other Income

Total Income

EBITDA

EBITDA %

Profit Before Tax (PBT)

PBT %

Profit After Tax (PAT)

PAT %

EPS (Rs / Share)

FY23

3,985

4,049

584

14.7%

353

8.9%

244

6.1%

5.01

FY22

3,334

3,378

454

13.6%

210

6.3%

146

4.4%

2.99

Change % (YoY)

Q4FY23

Q3FY23

19.5%

46.2%

19.9%

28.0%

68.4%

67.2%

67.6%

1,054

1,061

161

15.3%

9.4%

6.8%

1.48

1,010

1,034

155

15.3%

100

9.9%

6.5%

1.35

Change % (QoQ)

4.4%

(70.8)%

2.6%

3.9%

(1)%

9.1%

9.6%

Q4FY22

1,050

1,066

164

15.6%

108

10.3%

6.7%

1.45

BALANCE SHEET

Particulars (Rs Mn)

Gross Block – Tangible & Intangible Assets including WIP

Net Block – Tangible & Intangible Assets including WIP

Other Non- Current Assets

Current Assets

Total Assets

Net Worth

Borrowings

Other Non- Current Liabilities

Current Liabilities

Total Liabilities

FY23

2,257

1,357

150

1,909

3,416

2,003

596

759

3,416

FY22

1,920

1,174

121

2,121

3,416

1,757

513

1,135

3,416

FY21

1,762

1,172

158

1,918

3,248

1,608

811

827

3,248

FY20

1,689

1,256

177

1,820

3,253

1,538

899

810

3,253

TOTAL OPERATING INCOME

Annual (Rs Mn)

2,777

165

2612

FY20

CAGR 12.8%

3,073 153

2,920

3,334

3,282

3,985 98

3,887

FY21

FY22

FY23

Operating Income

Other operating income

Quarterly (Rs Mn)

1,050

927

994

1,010

1,054

867

775

642

Q1FY22

Q1FY23

Total Operating Income grew to Rs3,985Mn in FY23 vs Rs3,334Mn in FY22; growth of 19.5%; CAGR of 12.8% over last 3 years (FY20-FY23)

Business related ”Other Operating Income” includes licensing fees and export incentives

For the quarter, Total Operating Income grew to Rs 1,054Mn from Rs 1,010Mn in Q3FY23; growth of 4.4%

EBITDA

Annual (Rs Mn) and as % of Total Operating Income

CAGR 29.2%

421

13.7%

454

13.6%

584

14.7%

FY21

FY22

FY23

271

9.8%

FY20

Quarterly (Rs Mn) and as % of Total Operating Income

111

114

10.1%

14.4%

Q1FY22

13.1%

164

155

161

131

137

15.6%

14.1%

15.3%

13.8%

Q1FY23

EBITDA grew to Rs 584Mn in FY23 vs Rs 454Mn in FY22 to in spite of increase in operating costs and employee costs; CAGR of 29.2% over last 3 years (FY20-FY23)

Operating costs in the last few quarters has seen an upward trend on account of significant increase in oil prices; our energy costs have increased by 22% between FY23 and FY22

In addition, employee costs have been higher due to hiring of higher cost professionals across various divisions and higher incentive pay-outs during the year

PROFIT AFTER TAX

Annual (Rs Mn) and as % of Total Operating Income

244

6.1%

CAGR 94.8%

146

4.4%

2.4%

FY21

FY22

FY23

1.2%

FY20

Quarterly (Rs Mn) and as % of Total Operating Income

6.7%

5.5%

6.8%

6.5%

4.7%

4.3%

0.3%

Q1FY22

Q1FY23

Profit After Tax(PAT) was Rs 244Mn in FY23 vs Rs 146Mn in FY22, growth of 67.2% YoY; CAGR of 94.8% over last 3 years (FY20-FY23)

Our finance cost for FY23 was at Rs 56Mn vs Rs 83Mn in FY22 (for Q4FY23 was Rs 13Mn, vs Rs 16Mn in Q3FY23)

STRENGTHENING THE BALANCE SHEET

Gross Block Addition (Rs Mn)

ROCE and ROE (in %)

199

159

158

141

16 57

337

261

FY20

FY21

FY22

FY23

Tangible Assets

Intangible Assets

Cash Flow from Operations (Rs Mn)

492

375

318

219

10.8%

4.7%

FY21

5.4%

2.2%

FY20

16.8%

13.0%

12.5%

8.7%

FY22

FY23

Total Borrowings (Rs Mn) and Gearing %

ROCE

ROE

899

58%

811

50%

513

29%

596

30%

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

OUTLOOK AND FOCUS

OUTLOOK

PHARMACEUTICAL

NUTRACEUTICAL

We will continue to focus on our transformational growth journey

The pharmaceutical business will continue to contribute over 75% of our overall operating income, the balance coming from Nutraceutical business

The building blocks of the healthcare industry and our business remain intact; we may see some headwinds in the near term on account of adverse geo-political issues, inflation and foreign currency related issues in certain markets that may mute near-term demand

Any delays in obtaining product registration, plant accreditations, marketing tie ups may also delay the launch of our various products

We will Leverage on our core R&D strengths in the pharmaceutical business to develop a basket of differentiated and unique Nutraceuticals products that complement our pharmaceutical products in key therapeutic segments thus providing a holistic approach to patient health

Our efforts will be to enter into partnerships for marketing the Nutraceutical range of products; we will also enhance our marketing efforts in B2B and B2C / E-commerce space in the domestic and global markets for supply of unique products under white label or through our own brands

We have plans to invest in a new manufacturing facility to cater to the growing needs of this segment

FOCUS : FY24

We will continue to focus on entering the Key Developed and Pharmerging markets with new innovative generic products while growing our RoW business in line with historic trends

R&D

Operations and Quality

Capital Expenditure

Marketing

Enhance the product pipeline

Invest in BE studies and increase the number of new dossiers for Developed and Pharmerging Markets

Complete successful Audits as per the plan

Upgrade the plant & equipment to increase productivity, reduce wastage

Upgrade our Dossiers for re- submission in RoW markets

Further automate the processes; reduce risks

Pace our growth capital expenditure in line with market conditions

Complete our new Warehouse project and specific units being set up for NIP

Set up a new Nutraceutical manufacturing facility

Strengthen the Marketing Team with experienced professionals

Open local offices and on- ground support system in some of our key markets

Enter into partnerships in select markets for product registrations and commercial launches

Key Developed and Pharmerging Markets: EU, Turkey ,Canada, Australia, BRICS, LATAM, Saudi Arabia and other markets with high GDP / Capita

CORPORATE

BOARD OF DIRECTORS : ZIM

Dr. Anwar S. Daud Chairman and Managing Director

Mr. Zulfiquar Kamal Director - Finance

Mr. Niraj Dhadiwal Director - Business Development

Mr. Prakash Sapkal

Director and Head – ODS Business, Formulation – Domestic, RoW and Emerging Markets

Dr. Kamlesh Shende Independent Director

Chairman: Stakeholders Grievance Committee

Mr. Padmakar S. Joshi Independent Director Chairman: Nomination and Remuneration Committee

Mrs. Kavita Loya Independent Director

Chairperson : Audit Committee and Risk Committee

Dr. Kakasaheb Mahadik Independent Director Chairman: Corporate Social Responsibility Committee

BOARD OF DIRECTORS : ZHTL

Dr. Anwar S. Daud Non Executive Chairman

Dr. Chandrasekhar Mainde CEO and Executive Director

ZIM Health Technologies Ltd., (ZHTL) supports technology and business related functions of ZIM in areas of product development, manufacturing and marketing of complex generic and high end pharmaceutical and healthcare products – particularly for the Developed and Pharmerging markets

Dr. Chandrasekhar Mainde, a veteran R&D professional, joined ZHTL from Bilim, Turkey as the CEO and Executive Director and leads a team of experienced R&D, QA, QC, RA, production professionals on product ideation, development, dossier readiness, manufacturing and registration of all new products for ZIM Group

The R&D team under guidance of Dr. Mainde has been pivotal in enhancing the growth in ZIM’s business and product pipeline over the last few years

Mr. Gautam Saigal is an experienced Private Equity investment professional, who works closely with ZIM Group on all strategic and new initiatives

Mr. Zulfiquar Kamal Non Executive and Non Independent Director

Mr. Gautam Saigal Non Executive and Non Independent Director

SUBSIDIARIES

ZIM Laboratories Limited, India Listed on BSE & NSE

SIA ZIM Laboratories Limited, Latvia (100% Subsidiary)

ZIM Laboratories FZE, Sharjah , UAE (100% Subsidiary)

ZIM Health Technologies Limited, India (100% Subsidiary)

ZIM Thinorals Private Limited, India (100% Subsidiary)

For Product Registrations and marketing initiatives in the EU

For Business Development and Marketing initiatives in MENA and Africa region

Support services to ZIM on Overall R&D and Business related functions

Incorporated for OTF Business. Presently there is no business in this subsidiary

Revenue: Nil PAT:Rs(6.7) Mn

Revenue: Rs362 Mn PAT:Rs0.3 Mn

Revenue:Rs26 Mn PAT:Rs0.31 Mn

Revenue: Nil PAT:Rs(0.02) Mn

SHAREHOLDING

Ownership % (On Mar ‘23)

Traded Volume (In K) BSE+NSE

22%

609

35%

307

204

222 232

33%

169

Promoter Other Public Shareholding * HNI NRI and foreign individuals Body Corporates

Percentage figures rounded off to show whole numbers

*Includes Escrow shares; refer disclosure in published financial statements

Apr '22

May

June

July

Aug

Sept

Oct

Nov

Dec

Jan

Mar '23 Feb

Volume(Shares)

During Q3, ZIM Laboratories Limited was listed on the National Stock Exchange of India (NSE) in addition to earlier BSE listing

The company in Q3 issued Bonus Shares in the ratio of 2 (two) shares for 1 (one) existing share

Promoter Group shareholding is free of any encumbrance

3Mn shares held in Escrow* are available for sale subject to regulatory and market conditions

SHARE PRICE MOVEMENT

ZIM (BSE) vs BSE S&P Healthcare Index

23,875

50.7

70.3

71.3

22,364

82.3

106.3

23,788

86.7

90.4

78.5

21,635

Mar-22

Apr-22

May-22

Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

ZIM Avg. Closing Share Price

BSE Health care index (Average Closing price)

*Share Price - Adjusted for issue of Bonus Shares issued in Q3FY23

For Any Queries, please contact -

Company Secretary at cs@zimlab.in

For more information please visit www.zimlab.in

T H A N K Y O U

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