ZOTANSE2 August 2021

Zota Health Care LImited has informed the Exchange about Investor Presentation

Zota Health Care LImited

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A Zota

healthcare Itd.

August 02, 2021

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, 2021.

This is for your information and record.

Thanking you,

Yours faithfully,

For Zota Health Care Limited

EAL

HCAR

Ashvin Variya (Company Secretary & Compliance Officer)

Place: Surat

Encl: a/a

Registered office Zota House, 2/896, Hira Modi Street Sagrampura, Surat 395 002| Ph: +91 261 2331601 Emailt infO@zotaheathcare.com Web: www.zotahealthcare.com

Plant Plot no. 169, Surat Special Economic Zone, Nr. Sachin Railway Station, Sachin, Surat 394 230 (Guj) India Ph: +91 261 2397122

CIN L24231GJ200OPLCO38352

Q1FY22

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

J U L Y 2 0 2 1

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

Q1FY22- Result Highlights

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Stand Quarterly Financial Highlights

Q-o-Q

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

3344.49

Q1-FY22

34.02%

Q1-FY22

488.62

Q1-FY22

337.41

3064.26

Q4-FY21

29.57%

Q4-FY21

-14.24

Q4-FY21

-68.06

Q1-FY22

Q4-FY21

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

Q1-FY22

Q1-FY21

3344.49

Q1-FY22

Q1-FY21

1754.96

34.02%

Q1-FY22

488.62

Q1-FY22

337.41

33.66%

Q1-FY21

115.18

Q1-FY21

50.84

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Revenue Break up – Quarterly

Domestic Sales

Dava India Sales

Export Sales (SEZ)

1,815.1

896.8

768.7

1,013.4

1,282.2

1,056.2

632.6

370.0

328.7

Q 1 - F Y 2 1

Q 4 - F Y 2 1

Q 1 - F Y 2 2

Q 1 - F Y 2 1

Q 4 - F Y 2 1

Q 1 - F Y 2 2

Q 1 - F Y 2 1

Q 4 - F Y 2 1

Q 1 - F Y 2 2

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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

Q1FY22

Q1FY21

632.6 896.8 1,815.1 3,344.5 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%

328.7 370.0 1,056.2 1,754.96 1,164.32 590.6 33.66% 475.46 206.50 268.96 115.18 6.56% 22.82 138.00 7.86% 73.91 64.09 3.65% 0.74 63.35 3.61% 12.51 50.84 2.90%

YoY %

92% 142% 72% 91% 90% 93% 37 bps 37% 27% 44% 324% 805 bps 34% 276% 766 bps -17% 614% 1002 bps 19% 621% 1004 bps 852% 564% 719 bps

QoQ %

-38% 17% 42% 9% 2% 26% 446 bps -29% 2% -42% 3531% 1507 bps 24% 4901% 1518 bps -28% 704% 1615 bps -83% 664% 1629 bps 1021% 596% 1231 bps

Q4FY21

1013.4 768.7 1,282.20 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 -68.06 -2.22%

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Management Commentary

Davaindia recorded best ever quarterly Revenues in Q1FY22, despite a challenging external environment.

The Company has registered highest-ever quarterly Standalone Revenue of ₹3,344.49 Lakhs and gross margins of 34.02% in Q1FY22.

Exports performance was disturbed in Q1FY22 despite good order book. This was primarily due to a shortage in shipping containers leading to slower dispatch.

The sales contribution from new-age business stood at 46% in Q1FY22 as compared to 58% in Q4FY21 and 40% in Q1FY21.

EBITDA stood at Rs 519.10 Lakhs, with margins at 15.52% due to optimization of operational expenses on Davaindia front. Domestic marketing sales further aided the profitability.

PAT stood at Rs. 337.41 Lakhs, increasing 564% YoY basis and 596% QoQ basis.

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Management Commentary

DOMESTIC OPERATIONS

Domestic Revenues registered a growth of 90.14% YoY and 32.23% QoQ at ₹ 2711.9 Lakhs, supported by a surge in demand due to COVID-19.

EBITDA at ₹ 428.86 Lakhs for Q1FY22, backed by strong recovery in demand of Prescription Based Drugs.

*Here, Domestic Operations includes the operations of Davaindia.

PAT stood at ₹ 286.44 Lakhs for Q1FY22.

EXPORTS

Exports revenues grew 92% on YoY basis at ₹ 632.60 Lakhs in Q1FY21.

On QoQ basis, Exports witnessed a decline of 38%, as dispatch operations were effected by a shortage of shipping containers.

The Company has a strong order book in hand, and the performance is expected to normalize in Q2FY22.

010

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Davaindia Generic Pharmacy

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Davaindia Key Figures

SKU’s

Stores rolled-out

1 , 3 1 0

1 , 3 3 3

1 , 3 3 8

1 , 3 5 3

1 , 3 6 8

1 , 3 7 1

1 , 2 5 0

1 , 5 0 3

1 , 4 3 1

1 0 9

1 0 0

9 9

4 5

3 9

3 3

3 2

3 1

4 9

Q 1 - F Y 2 0

Q 2 - F Y 2 0

Q 3 - F Y 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 1 - F Y 2 0

Q 2 - F Y 2 0

Q 3 - F Y 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

012

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Davaindia Key Figures

Average Wallet Spend

No. of Customers Served

2 2 0

2 0 9

2 0 4

1 8 1

1 5 9

1 6 4

1 5 2

1 3 6

1 2 6

2 , 5 9 , 0 2 2

2 , 6 7 , 0 3 0

2 , 7 5 , 5 2 0

2 , 2 1 , 9 7 5

4 , 7 3 , 1 8 1

4 , 4 0 , 4 5 8

3 , 5 2 , 6 2 3

3 , 3 8 , 4 1 5

3 , 2 3 , 3 9 5

Q 1 - F Y 2 0

Q 2 - F Y 2 0

Q 3 - F Y 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 1 - F Y 2 0

Q 2 - F Y 2 0

Q 3 - F Y 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

013

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Davaindia- Generic Pharmacy

During the quarter Davaindia has catered to 4.73 lakhs customers against 4.40 lakhs in Q4FY21, coupled with, increasing Average Wallet Spends which has led to Revenue growth of 42% from Davaindia on QoQ basis.

Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. Till Q1FY21 Davaindia has catered to more than 3.54 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 remains higher, thus aiding overall company growth of Davaindia's business model.

Davaindia expansions continues, although the pace was slightly slowed down in Q1FY21 due to lockdown restrictions in light of the 2nd wave of Coronavirus. Davaindia has added 49 new stores in Q1FY22 taking the total store count to 640 as of June 30, 2021.

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. 1,503 has enabled Davaindia to better serve customers across all segments. Thus increasing its customer spends across varied price points, the Average Wallet Spend was ₹220 in Q1FY22.

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Davaindia- Generic Pharmacy

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Davaindia- COCO Stores

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Davaindia Footprints

640

TOTAL NUMBER OF STORES

Legend

Davaindia Stores

States

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

No. of Stores

04 07 05 01 139 27 03 09 08 02 13 88 111 01 45 31 09 24 02 04 04 05 83 15

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Management Commentary

Commenting on Q1FY22 financial performance and operational highlights, Management Team of Zota Health Care said,

“We are happy to report a great set of numbers in a rather challenging quarter. In Q1FY22, Davaindia and the domestic Marketing business led the charge, with a surge in demand for medicines & medical products acting as a tailwind for both. The Davaindia store rollout was slowed due to the 2nd wave, but this is a temporary setback. Aggressive retail roll-out has resumed in Q2.

Going forward, we plan to improve on all three fronts, namely, store roll-out, average Wallet Spend, and number of customers served; these factors, combined with sales contribution from newly established locations, will provide us with ample headroom to grow in the coming quarters. Our second new-age business, exports, experienced a modest setback due to persistent supply chain difficulties that resulted in a container scarcity. The company, on the other hand, has a healthy order book, so revenue recovery should be swift. Recent product registrations will assist us in expanding this business. Zota Health Care will evolve into a newer, better version of itself as a result of our continued focus on new-age businesses.”

018

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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

10678.92

125.97

10804.89

10616.46

188.43

1.76

316.87

-128.44

-1.2

10.98

-139.42

-1.3

15.65

-20.89

-0.2

-0.09

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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

FY19

8.0

0.0

214.5

138.6

94.2

103.5

FY20

2,456.0

4,426.9

105.3

1,859.6

8,847.9

2,961.4

5,886.4

8,847.8

FY20

4.0

0.0

56.6

97.2

111.8

82.5

FY21

2,456.0

4,173.6

95.1

1,822.7

8,547.5

2,427.0

6,120.5

8,547.5

FY21

-1.9

-0.3

0.0

-11.7

96.3

98.3

85.7

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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