ZOTANSE17 February 2022

Zota Health Care LImited has informed the Exchange about Investor Presentation

Zota Health Care LImited

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} zoto'

healthcare ltd.

Fe*uary 17 ,2022

To, The Manager Listing Department, The National Stock Exchange of lndia [imited Exchange Plaza,

Bandra Kurla Complex, Ba ndra (E), Mumbai - 400051

Dear Sir/Madam,

Trading Symbol: ZOTA

Sub: lnvestor Presentation

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

With reference to the captioned sub.iect we, zota Health Care Limited are submitting herewith enclosed the lnvestor Presentation in respect of Unaudited Financial Results for the quarter and nine months ended December 31, 2021".

This is for your information and record.

Thanking you,

Yours faithfully,

For_Zota Health Care Limited

Ashvin Variya (Company Secretary & Compliance Officer) Place:5urat

Encl: a/a

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Reghtered office : Zoto House, 2,/896 Hira Modi Street Sogrqmpurq, Surat 395 oo2 Ph: +91 261 2331601 Emq l: info@zotoheo thcorecom Web : wwvvzotoheo thcore.corn

Plont : Plot no 169, Surqt Speclol Economlc Zone, Nr Sqchln Roilwoy Stotiortr Sachin, Surot 394 23o (Guj) lldlo Pl 1912612397122

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Q3FY22

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

F E B R U A R Y 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

z o t a h e a l t h c a r e . c o m

Table Of Contents

z o t a h e a l t h c a r e . c o m

RESULT HIGHLIGHTS

OPERATIONAL METRICS

DAVAINDIA

BUSINESS OUTLOOK & STRATEGY

FINANCIAL SUMMARY

Q3FY22- Result Highlights

z o t a h e a l t h c a r e . c o m

Stand Quarterly Financial Highlights

Q-o-Q

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

3,093.88

Q3-FY22

39.93%

Q3-FY22

516.50

Q3-FY22

3,539.70

Q2-FY22

33.82%

Q2-FY22

493.62

Q2-FY22

354.23

331.63

Q3-FY22

Q2-FY22

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

Q3-FY22

Q2-FY21

3,093.88

Q3-FY22

39.93%

Q3-FY22

516.50

Q3-FY22

354.23

3,048.27

Q3-FY21

29.78%

Q3-FY21

-118.60

Q3-FY21

-100.76

z o t a h e a l t h c a r e . c o m

Stand 9-Month Financial Highlights

Y-o-Y

Revenues (₹ Lakhs)

Gross Profit (%)

9M-FY22

9M-FY21

9,978.07

9M-FY22

35.78%

7,619.86

9M-FY21

32.07%

Operating Profit (₹ Lakhs)

PAT (₹ Lakhs)

9M-FY22

1,498.76

9M-FY22

1,023.27

9M-FY21

81.81

9M-FY21

51.82

z o t a h e a l t h c a r e . c o m

Revenue Break up – Quarterly

Domestic Sales

Dava India Sales

Export Sales (SEZ)

1,699.9

1,452.6

1,334.5

693.5

910.4

848.1

1,020.3

991.7

739.5

Q 3 - F Y 2 1

Q 2 - F Y 2 2

Q 3 - F Y 2 2

Q 3 - F Y 2 1

Q 2 - F Y 2 2

Q 3 - F Y 2 2

Q 3 - F Y 2 1

Q 2 - F Y 2 2

Q 3 - F Y 2 2

z o t a h e a l t h c a r e . c o m

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

Q3FY22

Q2FY22

739.54 910.38 1452.56 3,093.88 1,858.51 1235.37 39.93% 718.87 244.93 473.94 516.50 16.69% 33.64 550.14 17.78% 75.51 474.63 15.34% 1.31 473.32 15.30% 125.00 354.23 11.45%

991.70 848.10 1699.90 3,539.70 2,342.47 1,197.2 33.82% 703.61 224.49 479.12 493.62 13.95% 18.04 511.66 14.45% 66.02 445.64 12.59% 1.19 444.45 12.56% 114.07 331.63 9.37%

YoY %

-28% 31% 9% 1% -13% 36% 1014 BPS -30% 6% -40% 535% 2058 BPS -41% 994% 1980 BPS -6% 435% 1999 BPS -62% 426% 2006 BPS 382% 452% 1475 BPS

QoQ %

Q3FY21

-25% 7% -15% -13% -21% 3% 611 BPS 2% 9% -1% 5% 275 BPS 86% 8% 333 BPS 14% 7% 275 BPS 10% 6% 274 BPS 10% 7% 208 BPS

1,020.25 693.50 1,334.52 3,048.27 2,140.35 907.92 29.78% 1026.52 231.66 794.86 -118.60 -3.89% 57.09 -61.51 -2.02% 80.08 -141.59 -4.64% 3.42 -145.01 -4.76% -44.26 -100.76 -3.31%

z o t a h e a l t h c a r e . c o m

Management Commentary

010

The Company reported a decrease in Revenues in Q3FY22 on a QoQ basis, primarily due to lower export sales.

The Company has registered a healthy increase in gross margins from 33.82% in Q2FY22 to 39.93% due to rising Davaindia sales and good pricing in overall Domestic business.

Exports performance suffered a 25% decline QoQ and 28% YoY, due to prolonged container shortages, rising lead times and increase in inputs costs – primarily some API’s.

EBITDA stood at Rs 550.14 Lakhs, with margins at 17.78% due to improvement in GPM and optimization of expenses on Davaindia front.

The sales contribution from new-age business stood at 53% in Q3FY22 as compared to 52% in Q2FY22 and 56% in Q3FY21.

PAT stood at Rs. 354.23 Lakhs, increasing 454% YoY basis and 7% QoQ basis.

z o t a h e a l t h c a r e . c o m

Management Commentary

DOMESTIC OPERATIONS

Domestic Revenues registered a decline of 7% QoQ and a growth of 17% YoY at ₹ 2362.9 Lakhs supported by healthy performance in both verticals.

EBITDA at ₹ 317.68 Lakhs for Q3FY22, backed by surge in Davaindia revenue.

PAT stood at ₹ 171.08 Lakhs for Q3FY22.

*Domestic Operations includes the operations of Davaindia.

EXPORTS

Exports revenues declined 25% on QoQ basis and 28% YoY at ₹ 739.54 Lakhs in Q3FY22.

EBITDA at ₹ 232.46 Lakhs for Q3FY22, in line with the decrease in export sales volume.

PAT stood at ₹ 183.14 Lakhs for Q3FY22.

z o t a h e a l t h c a r e . c o m

Davaindia Generic Pharmacy

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Davaindia Key Figures

Gross Mercantile Value (GMV)

Total GMV of Davaindia Stores stood at 1501 Lakhs during Q3FY22 up 7% QoQ and 31% YoY.

No. of SKU’s

New Stores rolled-out

1,614

1,585

1,503

Q1-FY22

Q2-FY22

Q3-FY22

Q1-FY22

Q2-FY22

Q3-FY22

13 13

z o t a h e a l t h c a r e . c o m

Davaindia Key Figures

Average Wallet Spend

No. of Customers Served

2 3 7

2 2 9

2 2 0

2 0 9

2 0 4

1 8 1

1 5 9

1 6 4

1 5 2

5 , 6 8 , 1 8 3

5 , 4 0 , 9 2 4

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

2 , 6 7 , 0 3 0

2 , 7 5 , 5 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 2 - F Y 2 2

Q 3 - F Y 2 2

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 2 - F Y 2 2

Q 3 - F Y 2 2

During Q3FY22, up by 5% QoQ and 76% YoY

z o t a h e a l t h c a r e . c o m

Davaindia- Generic Pharmacy

During the quarter Davaindia has catered to the highest-ever number of customer i.e. 5.68 lakhs against 5.41 lakhs in the previous year. Coupled with increasing Average Wallet Spends which stood at 237 against 229 in the previous quarter.

Davaindia has led the revolution of patients opting for generic medicines against branded counterparts. As of Q3FY22, Davaindia has catered to more than 4.65 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, although FOFO store roll-out has slightly slowed down in FY22 due to the lockdown disruptions and change in supply-chain strategy of the Company. In the coming quarters, the Company is confident of coming back with higher FOFO store roll-outs.

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. 1,614 has enabled Davaindia to better serve customers across all segments. Thus, increasing its customer spends across varied price points, the Average Wallet Spend was ₹237 in Q3FY22.

z o t a h e a l t h c a r e . c o m

Davaindia- Generic Pharmacy

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Davaindia- COCO Stores

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Operational FOFO Stores

457

OPERATIONAL FOFO STORES AS ON 31.12.2021

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 12 2 27 1 55 24 1 2 7 10 15 67 46 1 36 3 24 4 6 5 75 6 20

z o t a h e a l t h c a r e . c o m

Operational COCO Stores

OPERATIONAL COCO STORES AS ON 31.12.2021

Cities

Surat Palanpur Mehsana

No. of Stores

4 1 1

Legend

Company Owned Company Operated (COCO) Stores

Operated by wholly-owned subsidiary Davaindia Health Mart Limited

z o t a h e a l t h c a r e . c o m

Management Commentary

Commenting on Q3FY22 financial performance and operational highlights, Management Team of Zota Health Care said,

“The performance of Q3FY22 has witnessed some decrease on the topline front due to lower exports sales in the quarter, coupled with a QoQ decline in Domestic sales. Export sales suffered from logistical challenges such as container shortages and longer lead times to our export markets. We believe this is a temporary phenomenon and should correct in due course. Despite a QoQ dip in sales, the Company has done well on the profitability front, primarily on account of a healthy increase in gross margins. During the quarter we witnessed good pricing in our Domestic business which was aided by an increase in Davaindia sales, leading to better blended gross margins.

On the operational front, the Company moves ahead with its expansion plans for strengthing Davaindia's pan- India presence. The Company has been receiving an excellent response for its COCO stores and, in light of the same, has decided for faster rollouts of COCO stores in the coming quarters. On the FOFO stores front, the Company has rolled-out stores less aggressively in 9MFY22 due to two reasons: a) lockdown disruptions in the early part of the year and b) a change in the supply-chain strategy. The Company will stabilize its supply-chain strategy in the coming quarter, and then resume active rollouts for FOFO stores as well.

Zota Health Care will build on this performance, and evolve into a newer, better version of itself with its continued focus on new-age businesses.”

z o t a h e a l t h c a r e . c o m

Industry Snapshot & Business Strategy

z o t a h e a l t h c a r e . c o m

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.

z o t a h e a l t h c a r e . c o m

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

z o t a h e a l t h c a r e . c o m

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

z o t a h e a l t h c a r e . c o m

Financial Summary

z o t a h e a l t h c a r e . c o m

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

z o t a h e a l t h c a r e . c o m

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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