WINDLASNSE8 November 2023

Windlas Biotech Limited has informed the Exchange about Investor Presentation

Windlas Biotech Limited

Reg. Off.: 40/1, Mohabewala Industrial Area Dehradun, Uttarakhand 248 110, India Tel.:+91-135-6608000-30, Fax:+91-135-6608199

Corp. Off.: 705-706, Vatika Professional Point, Sector-66, Golf Course Ext. Road, Gurgaon, Haryana 122 001, India Tel.:+91-124-2821030

CIN-L74899UR2001PLC033407

November 8, 2023

To Listing / Compliance Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001

To Listing / Compliance Department National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (E), Mumbai – 400 051

BSE CODE: 543329

NSE SYMBOL: WINDLAS

Dear Sir/ Madam.

Sub: Regulation 30(6) of the SEBI (LODR) Regulations, 2015

Please find enclosed herewith the Results Presentation for the Quarter and Half Year ended September 30, 2023 for

your records.

Kindly take the same on record.

Thanking you,

Yours faithfully,

For Windlas Biotech Limited

Ananta Narayan Panda Company Secretary & Compliance Officer

Encl: as above

www.windlas.com

Windlas Biotech Limited Investor Presentation – November 2023

Safe Harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Windlas Biotech Limited (the “Company”), have been prepared solely for

information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in

connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing

detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty,

express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This

Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this

Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively

forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions

that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international

markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and

expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks,

as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this

Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by

third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Managing Director’s Message

Mr. Hitesh Windlass

During the second quarter of fiscal year 2024, the Indian Pharma Market (IPM) witnessed volume de-growth. Despite the headwinds posed by industry volumes, we are pleased to report yet another impressive quarter of financial results for our company. The company exhibited a sustainable performance, with a half-yearly YoY revenue growth of 18% and a quarterly YoY revenue growth of 15%. This growth can be attributed to the sustained growth witnessed across all business verticals.

Our diligent efforts to attract new customers and increase business with existing customers over the past two years have started to yield positive results. This is evident from the steady growth observed in our Generic Formulations CDMO business. We continue to grow in our trade generics and institutional business vertical, propelled by our strategic efforts to enhance our product portfolio as well as distribution reach across the hinterland markets of India and also optimize our institutional offerings in the same vertical. On a small base Export vertical grew by 130% YoY in H1 FY24.

The EPS stood at Rs 12.54 in H1 FY24 highest post listing, as compared to EPS of Rs 10.09 in H1 FY23, experiencing a growth of 24% YoY. The Company distributed dividends related to FY 23 to our shareholders, while simultaneously maintaining a robust liquidity position.

As communicated earlier, we have achieved mechanical completion of our injectables facility at the end of Q2 of this fiscal year. The completion of our injectables facility marks addition of a new dosage form for horizontal expansion. With this achievement, we are poised to unlock a new stream of revenue generation, starting from the next fiscal year.

We continue to have an upbeat view on India's pharmaceutical industry as a whole. Several favourable signs show that the company is now enjoying a good trend across all of its business verticals. Given the company's distinctive value proposition and high customer involvement, it is well-positioned to successfully pursue its long-term objectives in a sustainable manner.

CEO & CFO's Message

The company progressed with astute focus on growth and expansion, while upholding a strong commitment to establishing sustainability in our operations and fostering future business growth. Despite the challenging business environment of low volume growth, the company exhibited growth across various operational and financial metrics.

The company crossed Rs 150 Cr revenue milestone in Q2 FY24 and hat-trick of record-breaking quarterly revenue, also achieved highest ever revenue and EBITDA quarter.

Ms. Komal Gupta

The company's steadfast commitment to attaining its diverse Generic Formulations CDMO strategic goals remains evident. Our efforts to gain new customers and introduction of new products over the last two years has started bearing fruits in terms of the growth that we are currently witnessing in our Generic Formulations CDMO business. During the first half of fiscal year 2024, our Generic Formulations CDMO vertical exhibited a healthy performance, generating a revenue of INR 228.1 crores, reflecting YoY growth rate of 12%, and for Q2 FY24 revenue reached Rs 117.8 crores, growth rate of 10% YoY, indicating a positive trajectory for the vertical.

Within the domain of Domestic Trade Generics and Institutional vertical, the company has been consistently delivering Accessible, Affordable, and Authentic medication to the underserved regions of India. The generics sector in India is poised for robust growth, driven by the implementation of government policies that seek to foster the acceptance and dependence on generic medications. Within the Trade Generics & Institutional vertical, during H1 FY24 we recorded a revenue of Rs. 59.1 crores, achieving YoY growth of 33% and for Q2 FY24, we generated revenue of Rs. 28.3 crores, exhibiting a growth rate of 23% when compared with the corresponding period in the previous year.

The company's export vertical growth approach comprises its broadening into semi-regulated markets. In the first half of fiscal year 2024, our company's revenue reached INR 10.3 crores, achieving YoY growth of 130% and In Q2 FY24, the exports vertical witnessed an increase in revenue, amounting to INR 6.4 crores, growth of 157% on a year-on-year basis, reflecting an upward trend.

In the context of the financial performance of the company, the revenue generated during H1 FY24 reached Rs. 297 crores, a YoY gain of 18% and for Q2 FY24 amounted to Rs. 153 crores, growth of 15% YoY. The EBITDA metric indicated growth during the first half of fiscal year 2024, reached Rs. 36 crores, growth of 20% YoY and for Q2 FY24 reaching a total of Rs. 19 crores, uptick of 17% YoY. The company's PAT for H1 FY24 stood at Rs. 26 crores, a YoY rise of 19% and for the Q2 FY24 amounted to Rs. 14 crores, reflecting a YoY increase of 15%.

In line with our objective of creating long-term value for all our shareholders and stakeholders, in Q2 FY24 the company has paid the dividend of Rs 8.3 crores (Rs 4 per share) related to FY23 as per the dividend policy. The EPS stood at Rs 12.54 and Rs 6.75 per share in H1 FY24 and Q2 FY24 (highest EPS post listing). The company generated strong operating cash flows of Rs. 54 Crores during H1 FY24 and had a healthy liquidity position of Rs. 167 Crores as on 30th September 2023.

Financial Performance Highlights

Key Highlights: H1 and Q2 FY2024

Crossed 150 Cr milestone & hat-trick of highest quarterly revenue

Highest ever EBITDA of Rs 19 Crores in Q2FY24

EPS in H1FY24 Rs 12.54 (highest post listing) YoY growth of 24%

Paid dividend related to FY23: Rs 8.3 Cr (Rs. 4 per share)

Generated net operating cashflows of Rs. 54 Cr during H1FY24

Strong liquidity of Rs. 167 crores as on 30th September 2023

Half-yearly Performance Highlights

Revenue

+18%

297.5

252.7

EBITDA & EBITDA Margin (%)

13.4% 11.3%

11.8%

11.2% 12.0%

Rs. Crores

Clocked in highest Clocked in highest ever Revenue & ever Revenue & EBITDA EBITDA

+20%

35.8

29.8

d e t a d

i l

o s n o C

H1 FY23

H1 FY24

H1 FY23

H1 FY24

Generic Formulations CDMO

+12%

228.1

203.7

Trade Generics & Institutional

+33%

59.1

44.5

e u n e v e R

a c i t r e V

Exports

+130%

10.3

4.5

H1 FY23

H1 FY24

H1 FY23

H1 FY24

H1 FY23

H1 FY24

Quarterly Performance Highlights

d e t a d

i l

o s n o C

Revenue

+15%

152.7

132.7

Crossed Rs.150 Cr. Crossed Rs.150 Cr. Revenue milestone Revenue milestone and hat-trick of and hat-trick of highest quarterly highest quarterly revenue revenue

EBITDA & EBITDA Margin (%)

13.4% 11.3%

12.1%

11.2% 12.2%

Rs. Crores

+16%

18.7

16.0

Q2 FY23

Q2 FY24

Q2 FY23

Q2 FY24

Generic Formulations CDMO

+10%

117.8

107.1

Trade Generics & Institutional

+23%

28.3

23.1

e u n e v e R

a c i t r e V

Exports

+157%

6.5

2.5

Q2 FY23

Q2 FY24

Q2 FY23

Q2 FY24

Q2 FY23

Q2 FY24

Vertical Break-up

H1FY23

H1FY24

81%

18%

77%

20%

CDMO

Trade Generics & OTC

Exports

CDMO

Trade Generics & OTC

Exports

Q1FY24

Q2FY23

Q2FY24

76%

21%

CDMO Trade Generics & OTC Exports

81%

17%

77%

19%

CDMO Trade Generics & OTC Exports

Consolidated Profit & Loss Statement – H1 & Q2 FY24

Particulars (Rs. Crores)

Net Revenue from Operations

COGS

Gross Profit

Gross Margin (%)

Employee Expenses

Other Expenses

EBITDA

EBITDA Margin (%)

Other Income

Finance Costs

Depreciation

Reported PBT

Taxes

Reported PAT

H1FY24

H1FY23

297.5

187.4

110.1

37.0%

41.9

32.4

35.8

252.7

160.8

91.8

36.3%

34.4

27.6

29.8

12.0%

11.8%

5.9

0.5

6.5

34.7

8.6

26.1

5.5

0.5

5.7

29.2

7.2

22.0

YoY%

17.7%

19.9%

67bps

20.1%

24bps

18.8%

18.6%

Q2FY24

152.7

95.9

56.8

37.2%

21.3

16.8

18.7

Q2Y23

132.7

84.4

48.3

36.4%

17.7

14.5

16.0

12.2%

12.1%

3.2

0.3

3.3

18.3

4.3

14.0

2.6

0.1

2.9

15.6

3.4

12.2

YoY%

15.0%

17.5%

80bps

16.5%

15bps

17.1%

15.0%

EBITDA Bridge for Q2 & H1 FY24

H1FY24 EBITDA Bridge(Rs. Crores)

29.8

16.3

2.0

7.5

4.7

35.8

H1FY23

Higher/Lower Sales Impact on Gross Margins

Gross Margin Improvement/ Reduction

Employee Benefit Expenses

Other Expenses

H1FY24

Q2FY24 EBITDA Bridge (Rs. Crores)

16.0

7.3

1.2

3.6

2.3

18.7

Q2FY23

Higher/Lower Sales Impact on Gross Margins

Gross Margin Improvement/ Reduction

Employee Benefit Expenses

Other Expenses

Q2FY24

Rewarding Shareholders

•

Highest ever EPS in H1 and Q2 FY24 post listing. The earnings per share (EPS) experienced a growth i.e. in the first half of fiscal year 2024, the EPS stood at Rs.12.54 YoY growth of 24% and in Q2 FY24 Rs 6.75 a growth of 21% YoY.

Dividend:

•

In line with our policy, the company has paid 20% of its consolidated profits i.e., is Rs 8.3 Cr (Rs 4.0 per share), to its shareholders for FY23

According to our company policy, we aim to maintain a Dividend Payout Ratio as near as possible to 20% of our consolidated profit after

tax, subject to -

o Company’s need for Capital for its growth plan

o Positive Cash Flow

Consolidated Balance Sheet

Equities & Liabilities (Rs. Crores)

Sept-23

Mar-23

Assets (Rs. Crores)

Sep-23

Mar-23

Consolidated

Equity

Equity Share capital

Other Equity

Non Controlling Interest

Total Equity

Financial liabilities

(i) Borrowings

(ii) Other Financial liabilities

(iii) Lease Liability

Deferred tax liabilities (Net)

Provisions

Total Non Current Liabilities

Financial liabilities

(i) Borrowings

(ii) Trade Payables

(iii) Other financial liabilities

(iv) Lease Liability

Provisions

Current tax liabilities (Net)

Other current liabilities

Total Current Liabilities

10.4

405.8

0.0

416.2

0.1

0.2

2.5

0.0

2.3

5.1

2.2

107.2

32.9

1.6

1.0

1.3

2.5

10.5

391.8

0.0

402.3

0.1

0.3

3.0

0.0

2.0

5.5

0.3

87.7

26.4

1.5

0.4

0.6

4.1

148.7

121.2

Non Current assets Property, Plant and Equipment Capital work in progress Right to use assets Other Intangible assets Intangible assets under devlp. Financial Assets

(i) Investments (ii) Other Financial Assets

Deferred Tax Assets (net) Other non-current assets Total Non Current Assets Current Assets Inventories Financial Assets

(i) Investments (ii) Trade receivables (iii) Cash and Bank Balances (iv) Bank Balances & Financial Assets (v) Other Financial Assets

Current Tax Assets(Net) Other current assets Total Current Assets

Total Equity and Liabilities

570.0

529.0

Total Assets

99.6 57.0 5.7 0.8 2.4

0.0 2.4 1.9 11.8 181.6

61.1

141.2 127.4 1.2 26.3 2.0 0.0 29.3 388.4

570.0

102.6 13.8 6.3 0.5 1.0

0.0 7.6 2.0 41.6 175.4

74.7

106.5 116.9 3.7 21.8 1.5 0.0 28.5 353.6

529.0

Consolidated Cash Flow Statement

Particulars (Rs. crores)

H1FY24

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Direct taxes paid (net of refund)

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Net Increase in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the period

Cash & Cash equivalents at the end of the period

36.7

24.8

61.4

-7.7

53.7

-44.5

-11.8

-2.5

3.7

1.2

FY23

64.4

6.3

70.7

-9.7

61.0

-14.1

-43.7

3.1

0.6

3.7

Company Overview

Windlas Biotech at Glance

Scalability

Durability

Profitability

 Leading Domestic Generic Formulations CDMO

 Well aligned workforce with ESOPs and

 Consistently maintained Gross Margins

in terms of Revenue

variable pay

above 35% since FY19

 License to manufacture 5,370* Products (as of March, 2023) across 4 plants with 7.3bn+ Tablets/Capsules capacity

 1 employee in Quality for every 3 employees in

Manufacturing (as of March 31, 2023)

 Provided Generic Formulations CDMO

products services to 7 of the Top 10 (15 of top 20) Indian Pharmaceutical Formulations Companies (in FY23)

 Growing Trade Generics & Institutional Business through channel, product and geographic expansion.

 Digitalized Planning and Quality

Management Systems with Data Analytics based decision support

 Emphasis on Chronic and Sub-chronic therapies (57%) and Complex Generics (76%) (for FY23)

 Own R&D Labs High innovation velocity - Complex products grown from 1,325 to 2,147 in FY23 vs FY22

 Net cashflow from operations for FY23 is

INR 61.0 crores

 Strong Liquidity of INR 138 Crores as on

FY23 and Net Debt Free Company.

 RoE** – 16.1% and RoCE** – 18.1% For

FY23

 PAT of INR 42.6 crores for FY23 with 8.3%

PAT margin

*from the State Drug Licensing Authority, Drug Controlling and Licensing Authority (Manufacturing), Garhwal Mandal, Uttarakhand ** For ROCE & ROE, Capital Employed & Equity at the end of period after removing cash/bank & mutual fund balances at the end of period

Windlas Biotech’s Presence in Pharma Value Chain

Research

Drug Development

API Manufacturing

Formulation Manufacturing

Packaging

Value Chain

CRO Vertical

Generic Formulations CDMO Vertical

*Signifies Presence of Windlas Biotech in the Respective Verticals

We invest in creating our own formulation technology for our products. Almost 100% of our CDMO supplies are based on products where we own the entire IP from initiation to regulatory permission.

Journey So Far…

 Commenced operations at

Dehradun Plant – I and initiated commercial production

Dehradun Plant – IV Revenues crossed INR 100 Crores for FY2010

 Received first USFDA inspection clearance  Revenues crossed ₹200 Crores for the FY

• Revenues crossed ₹300 Crores for the FY 2016-17 • Launched first product in the United States from

2013-14

the Dehradun Plant – IV

 Commenced operations at Plant – II  Investment of ₹75 Crores from Tano India

• Commenced operations at Dehradun Plant – III • Divestment of Windlas Healthcare to Cadila

Private Equity Fund II

Healthcare

2001

2010

2014-15

2018

2023 Onwards

2021-22

2020

2019

 Buyback of Rs. 25 crores successfully

completed

 Dividend payments of Rs. 7.6 Crores

(Rs. 3.5 per share) for FY22

 Trade Generics and Institutional grew at CAGR of 35% from FY19 to FY23  Injectable mechanical completion ongoing and will be operational by FY24

 Approval of Scheme of Amalgamation of

Windlas Healthcare

 Capital expenditure of INR 79.18 Crores

towards addition of Fixed Assets

 Got listed on Exchanges in August 2021  Capacity of Capsules/ Tablets increased

from 5 Bn+ as of Mar 31,2020 to 7 Bn+ as of March 31, 2022

 Capital Expenditure of INR 15.2 Crores towards addition to Fixed Assets

 Acquired the erstwhile associate

– Windlas Healthcare

 Capital expenditure of INR 12 Crores towards

addition to Fixed Assets

Strong Board of Directors…

 Chairman of Confederation of Indian Industries , Uttarakhand State Council,  Established Windlas Biotech in 2001.  Led Windlas Biotech as MD till 2020

21+ years of experience in field of management Bachelor’s degree from the IIT-BHU, MS in Material Science & Engr. from Georgia Institute of Technology and MBA from the Booth School of Business, University of Chicago Leads the company since 2008

 22+ years of experience in the

pharmaceutical industry, he has a Bachelor’s degree in Law from the Hemwati

 Nandan Bahuguna Garhwal University,

Srinagar (Garhwal)

 22+ years of experience in manufacturing

and supply operations.

 Previously associated with ICI India Ltd, Baxter India Private Ltd, and Pfizer Ltd.  Bachelor’s degree from IIT-B & Master’s degree in science from University of Kentucky

Pawan Sharma Executive Director

Vivek Dhariwal Chairman and Independent Director

Co-founded Windlas Biotech in 2001 Deeply engaged in managing client relations, and product portfolio expansion Plays a significant role in driving the product portfolio decisions and overall commercial operations including business development, supply chain and procurement He is a BBA graduate from George State University Atlanta

 20+ years of experience.  Bachelor’s degree in technology from the IIT,

Delhi, Master’s degree in science from University of Southern California, and an MBA from University of Chicago.

 Currently associated with Michael & Susan Dell Foundation India and previously with Boston Consulting Group

Prachi Jain Windlass Non-Executive Director

Ashok Kumar Windlass Whole Time Director

Hitesh Windlass Managing Director

Manoj Kumar Windlass Jt. Managing Director



 



Srinivasan Venkatraman Non-Executive Director

 Fellow member of the Institute of Chartered Accountants of India.  Previously associated with Wealth Tree Advisors, Hines, Aon Global Insurance Services, and Lovelock & Lewes

Gaurav Gulati Non-Executive Director

 Bachelor’s degree in Science (computer science) from the University of Illinois. MBA from Booth School of Business.

…Coupled with Proficient Management Team

Mr. Ashok Kumar Windlass, Whole Time Director Founded Windlass Biotech in 2001 54+ Years of Experience in the industry, he has led Windlas Biotech as MD till 2020.

Mr. Hitesh Windlass, Managing Director 21+ Years of experience in field of management Leads the company since 2020 & plays a significant role in preparing strategy of Company.

Mr. Manoj Kumar Windlass, Joint Managing Director Experience – 22+ Years; Co-founded Windlas Biotech in 2001. Deeply engaged in managing client relations, and product portfolio expansion

Mr. Pawan Sharma, Executive Director 22+ Years of experience in the industry. He has been attached with Windlass Since 2001. Controls the Administrative & Commercial activities of the company.

Ms. Komal Gupta, CEO & CFO Experience – 18+ Years; Educational Qualification - CA, CS & CWA Working with Windlas since 2015 Previously worked with DSM Group and Anand Automotives Systems Ltd.

Mr. Om Prakash Sule, Site Quality Head Experience - 26+ Years; Previously worked with Piramal Enterprises Limited and Mankind Pharma Limited.

Mr. Ananta Narayan Panda , Company Secretary and Compliance Officer Experience - 22+ Years; Previously worked with GMR Airports Limited, Spice Smart Solutions Limited

Mr. Mohammed Aslam, President – Sales and Marketing Experience - 43+ Years; Educational Qualification - Graduate in Science (Biology & Chemistry) Previously worked with Pharmed -Bracco, Modi-Mundi Pharma, a Swiss MNC and Dalmia Industries Limited

Vertical Overview

Generic Formulations CDMO

Trade Generics & Institutional

Exports



Generic Formulations CDMO vertical focused on providing products & services across- a diverse range of pharmaceutical & nutraceutical generic products. Such products are sold to Indian or foreign Pharma MNCs who market products under their own brand names. Intellectual Property Rights of 99% of products sold owned by Windlas.

Contribution as a % of Total Revenue from Operations



This vertical consists of Trade Generics which includes products sold to various institutions. These products are Drugs for which Patents have been expired and are typically used as a substitute to branded expensive Generic medicines. Generally sold to the Distributors & not Medical representatives.



Export vertical is engaged in identifying high growth opportunities in Semi regulated international markets & selected regulated markets. The motive is to Develop & Register product applications in order to obtain marketing authorizations for medicines & health supplements. Subsequently such products are sold to Pharmaceutical & Pharmacies in the respective markets.

Companies

84%

87%

85%

81%

78%

Contribution as a % of Total Revenue from Operations

10%

18%

13%

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

Generic Formulations CDMO Business Highlights

No. Of Customers 371

Brand Used Brand of the end CDMO Customer

Products Fixed dosage, Fixed dosage plus modified release, Customized generics, chewable/ dispersible and plain oral solids

Revenue Mix (% of FY23) 78%

Amongst the leading Domestic Generic Formulations CDMO in India

Intellectual Property Rights of 99% of products sold owned by Windlas

Well Diversified Product Portfolio

Windlas provides Generic Formulations CDMO products & services ranging from product discovery, product development, licensing and commercial manufacturing of complex generic products in compliance with current GMP

Company’s product portfolio predominantly overlaps with Fast Growing Chronic vertical and High Margin Complex Generic Vertical:

Generic Formulations CDMO Revenue grew with a CAGR of 12%

Value chain of End-to-end Services

Portfolio Bifurcation as % of Total Revenue from Operations FY23

23%

INR Crores

257

287

+12%

362

380

398

Product Discovery & Development

43%

57%

FY19

FY20

FY21

FY22

FY23

76%

CDMO Revenue

Licensing

No. of Generic Formulations CDMO Products Catered every year

Chronic & Sub-Chronic Acute

Complex Generics Conventional Products Others

+28%

1,364

2,405

1,834

Contract Manufacturing

900

1,051

(i) chronic and sub-chronic, such as, anti-diabetic, cardiovascular, neuropsychiatry, respiratory health and nutraceuticals ; and (ii) acute, such as, gastroenterology, vitamins, minerals and supplements (“VMS”), analgesic, dermatological and cough/ cold

2019

2020

2021

2022

2023

Large Marquee Customer Base

 Streamlined Client Acquisition Process

Added New Customers at a rapid pace

Lead Identification

Proposal Creation

Negotiation

Contract Winning

Client Management

 Key Factors that lead to Expansion of Customer base

Audits by several MNC & Domestic Customers over the years

Product Excellence : dosage innovation, developing complex generic products

Manufacturing Excellence : track record, responsiveness, quality & technical standards, turnaround times

Planned capital expenditure: Invested in specialized products and services and equipment and dedicated infrastructure

 Key Factors that lead to Expansion of Customer base

 Quality, Quantity and specifications for the products

 Company is responsible for the procurement of raw materials and packaging

materials

 Provide the proper pricing & supply terms

371

285

+40%

204

143

FY19

FY20

FY21

FY22

FY23

No. of CDMO Customers catered to

Key Highlights

We have consistently maintained strong, exclusive & Long-Standing relationships with the leading Indian Pharmaceutical companies.

Provided Generic Formulations CDMO Products and Services to 7 of the top 10 (15 of the top 20) Indian Formulations pharmaceutical companies.

De-Risking the Customer Concentration

Long-term nature of the relationships help in pre-plan the Capex and eventually help in achieving sustainable growth and profitability

Long-term Relationships with Marquee Clients

Ease is Pre-Planning Capex

Increased Economies of Scale

Strengthened Purchasing Power for Raw Materials

Competitive cost structure in order to achieve Profitability

Continuously reducing highest customer’s contribution

Lowering client concentration risk

12.3%

11.7%

11.0%

12.6%

9.5%

56.7%

56.8%

57.5%

51.9%

42.0%

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

Underpinned by Strong Tailwinds for Organized Players

Key Updates in Generic Formulations CDMO industry

Scaled CDMOs shifting identity from “Supplier” to “Partner”

Customers asking for higher quality systems in R&D as well as manufacturing

‘Marketeers’ equally responsible for quality of the drug product in eyes of regulator

New schedule M to be implemented in October 2021 – many small manufacturers may become unviable

Production Linked Incentive - 2 Scheme to cover complex products in formulations

Generic Formulations CDMOs deploying superior R&D infrastructure, expertise and capital

‘Raw materials purchase efficiency of larger Generic Formulations CDMOs exceeds that of customers in many small – mid volume products

Demand from customers for launch of patent expiry products

End to end services offered by larger Generic Formulations CDMO reduces the complexities in inventory management & logistics for the big pharma companies

Strong Industry Tailwind- Domestic Generic Formulations CDMO to grow at 14%+ CAGR in next 5 years

Consolidation in the Generic Formulations CDMO industry driven by need for providing better and wider portfolio of products and services

INR 370-410 Billion FY25P

~14% CAGR

INR 250 Billion FY21P

FY20

~400 Organised + 15,000 Unorganised Players 79%

Top 6 (incl. Windlas Biotech) 21%

Source: CRISIL Report

Capex & Outlook For Injectables

Key Highlights

 Ongoing mechanical

completion for injectables

 Brown Field Project at Dehradun Plant - II

 Liquid Vials & Lyophilized

vials

Multiple Triggers for Revenue Growth and Improved Return Ratios

Key Growth Drivers

Impact

 Rise in chronic diseases  Emergence of New Drug

Delivery Systems

 New Therapeutic areas for

Injectables

 Would help improve economies of scale  B2B Injectables CDMO

vertical to improve overall company’s margins

Foray into High Growth Injectables Business: Injectables business will complement the existing CDMO offerings and will enable to achieve higher margins

Outlook on Global Injectables Market

Outlook on Domestic Injectables CDMO Industry

$ 700-800 Billion 2025P

~8% CAGR

$ 502 Billion 2020

Source: CRISIL Report

~INR 51 Billion FY25P

~12% CAGR

~INR 32 Billion FY21P

Domestic Trade Generics & Institutional Business Overview

Brand Used Company’s Brand Names

Products Focus on Respiratory, Anti-diabetic, Gastroentology & other chronic + sub chronic TA’s

Revenue Mix (% of FY23) 18%

No. of Brands

278

Leveraging Trade Generics & Institutional Market Opportunity

Highlights

Key Drivers

Fastest Growing SBV in the last three years chart

Rs. 91 Crores Trade Generics & Institutional SBV revenue (FY23)

Low costs generics

compared to branded

INR Crores

Trade Generics & Institutional Revenue

+35%

Distributed through 695 Stockists & Distributors spread across 29 states (FY23)

Similar quality to branded generics but are sold at relatively lower prices

FY19

FY20

FY21

FY22

FY23

Sold directly to the distributor and not marketed through Medical representatives.

People in rural areas who are less privileged to access the healthcare facilities

With number of Brands on growing at a healthy pace

Also includes institutional sales.

Government push for schemes such as Jan Aushadhi Yojana, encouraging traded generics use

110

128

+26%

185

218

278

FY19

FY20

FY21

FY22

FY23

Export Business Overview

No. Of Customers

Focused on Emerging & Semi-Regulated Markets

Brand Used Own Brands and End Customer Brands

Products Exported 74 Products during FY23 which includes Generic Medicines & Health Supplements

Revenue Mix: 3.9% of FY23 Revenue from Operations Exports SBV: INR of 20 crore as of FY23.

Geographic Reach

Robust R&D Capabilities

Robust R&D capabilities help in Customize and Market Complex; Generic Products to Customers and differentiate from Competition

R&D Key Highlights

Licensed to manufacture 5,370 Products as of FY23

Focus on low cost First-to-launch generic products

Consistent in R&D Expenditure

Robust Growth in Complex Generics

R&D Expenditure

Strong medical affairs and regulatory affairs team

+21%

6.5

INR Crores

8.9

No. of Variations in Complex Generics

2,147

+36%

934

1,325

4.2

3.9

3.6

625

725

2019

2020

2021

2022

2023

Leading to New Innovations

2019

2020

2021

2022

2023

Leading to Significant increase in Revenue from High Margin Complex Generics:

Significant Experience in developing Multi-Drug Products

Chocolate flavored chewable tablets

28%

29%

33%

35%

37%

Dispersible tablets

Sustained release products

Novel Formulations of Existing Molecules

28%

11%

23%

12%

32%

30%

31%

25%

29%

11%

10%

26%

23%

Fixed Dosage Combinations

Fixed Dosage Modified Release

Customised Generics

Chewable/ Dispersable

Plain Oral Solids

FY19

FY20

FY21

FY22

FY23

Competencies in Manufacturing Facilities

Efficiency & Effectiveness in Regulatory & Quality Compliance act as solid Entry Barriers

Dehradun Plant 1 commenced operations in 2001

Dehradun Plant 2 commenced operations in 2014

Dehradun Plant 3 commenced operations in 2018

Dehradun Plant 4 commenced operations in 2009

Total Installed operating capacity per annum

Plant wise operating capacity as of 31st March FY23

Key Highlights

Windlas Biotech Limited has informed the Exchange about Investor Presentation

Market Movers