CIPLA

Cipla 29th July, 2022 (1) BSE Ltd. (2) National Stock Exchange of India Ltd. Listing Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th floor, Dalal Street Plot no. C/1, G Block, Mumbai 400 001 Bandra Kurla Complex, Bandra (East), Mumbai -400 051 Scrip Code: 500087 Scrip Code: CIPLA (3) SOCIETE DE LA BOURSE DE LUXEMBERG Societe Anonyme 35A Boulevard Joseph 11, L-1840 Luxembourg Sub: Investor Presentation Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the investor presentation dated 29th July, 2022. This is for your information and record. Thanking you, Yours faithfully, For Cipla Limited ndra Chopra Company Secretary Encl: as above Prepared by: Chirag Hotchandani Cipla Ltd. Regd. Office -Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013, India P +91 22 24826000 F +9122 24826120 W www.cipla.com E-mail contactus@cipla.com Corporate Identity Number L24239MH1935PLC002380 CLICK TO EDIT MASTER TITLE STYLE Investor Presentation Q1FY23 29-7-2022 CDLIISCCK TLOA EIDMITE MRASTER TITLE STYLE Except for the historical information contained herein, statements in this presentation and the subsequent discussions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties including impact of Covid-19 and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, our ability to obtain regulatory approvals, technological changes, fluctuation in earnings, foreign exchange rates, our ability to manage international operations and exports, our exposure to market risks as well as other risks. The investor presentation is not intended to endorse, advertise, promote or recommend the use of any products listed in it which are for representation purpose only, some of which are reference listed drugs of which the Company has approved, under approval or under development generic equivalents. The prefixes “g” and “generic” used interchangeably indicate the generic versions of the named brand drugs. Information relating to any medical products or medical devices contained herein is provided by Cipla for general information purposes only. Information on any of the medical products or medical devices may vary from country-to-country. A reference to a medical product or a medical device does not imply that such medical product or medical device is available in your country. The commercial availability of the medical products or medical devices listed herein in your country is dependent on the validity and status of existing patents and/or marketing authorizations related to each. An independent enquiry regarding the availability of each medical products or medical device should be made for each individual country. The product information contained herein is not intended to provide complete medical information, and is not intended to be used as an alternative to consulting with qualified doctors or health care professionals. Nothing contained herein should be construed as giving of advice or the making of a recommendation and it should not be relied on as the basis for any decision or action. It is important to only rely on the advice of a health care professional. Q1FY23 Performance SustainCedL IpCeKrfo TrmOa nEcDeI aTc MrosAs gSeToEgRra TphITieLsE a nSdT cYoLnEtinued momentum on core profitability KEY HIGHLIGHTS Overall Revenue EBITDA R&D Investment1 INR 5,375 Cr INR 1,143 Cr Core margin INR 274 Cr trajectory intact; despite sharp 2% 6% 21.3% normalisation in covid 4% 5.1% portfolio contribution overall Ex-covid Margin YoY growth of overall compared to Q1FY22 YoY growth YoY growth revenue BUSINESS UNIT-WISE REVENUE & YOY GROWTH One-India North America SA Private International Markets 9% YoY growth 10% YoY growth 8% YoY growth 18% YoY growth (ex-covid) in INR terms in $ terms in ZAR terms in $ terms Steady momentum in core Strong DTM2 growth across Continued core portfolio formulation business driven by geographies; offset emerging momentum across therapies and Recovery expected in Q2FY23 contribution from respiratory and market forex volatility and muted business segments peptide products B2B demand in Europe Note: 1. Opexincluding depreciation | 2. Direct to market Continued focus on maintaining strong balance sheet health and robuCstLIfCreKe TcOa EsDhITfl oMwASgTeERn eTrITaLtEio SnTYLE Total Debt1 (INR Cr) Cash Balances2 Net Cash3 / Equity (INR Cr) 0.19 0.19 1,084 5,211 4,965 1,056 Mar'22 Jun'22 Mar'22 Jun'22 Mar'22 Jun'22 ▪ Robust free cash flow generation driven by prudent working capital management and optimised capex drive ▪ Continued governance on cash and liquidity management ▪ Net cash positive position continues at June-22 end reflects robust capital structure 1. Total debt includes lease liabilities | 2. Includes cash and cash equivalents including fixed deposits, current investments, margin deposits and excludes unclaimed dividend balances | 3. Net Cash = Total Cash balances -Total debt Financial Performance – Q1FY23 CLICK TO EDIT MASTER TITLE STYLE Revenues INR 5,375 Cr 2% YoY EBITDA INR 1,143 Cr │21.3% 15% YoY Q1 FY23 (Consolidated) Revenue1 Break-up Actuals API, 3% vs Q1 FY 22 Others, 1% (INR Cr) International Markets, Total Revenue from 5,375 -2% 13% Operations EBITDA 1,143 -15% SAGA, India, 46% EBITDA % of revenue 21.3% -318 bps 15% PAT 686 -4% PAT % of revenue 12.8% -22 bps Priority projects on R&D2 INR 274 Cr 4% YoY North America, 22% track 1. As per IQVIA 2.Sri Lanka, Myanmar, Nepal and Morocco 1. India includes Rx + Gx+ CHL; SAGA includes South Africa, Sub-Saharan Africa and Cipla Global Access; International Markets include Emerging Markets and Europe | 2. Opexincluding depreciation | Figures have been rounded-off One India (Rx + Gx+ CHL1): Continued core portfolio momentum across businesses amid significant normalisation in covid contribution CLICK TO EDIT MASTER TITLE STYLE Core One-India portfolio growth tracking above 10% for most quarters; market beating growth in branded prescriptions for 5 consecutive quarters One-India business quarterly trends (INR Cr.) One-India Business TTM3 trends (INR Cr.) 4,000 50% 9,601 10,000 8,837 20% 2,710 40% 3,000 2,483 8,000 6,961 30% 15% 1,608 6,000 2,000 1,388 20% 10% 10% 4,000 1,000 5% 0% 2,000 - -10% - 0% Q1FY20 Q1FY21 Q1FY22 Q1FY23 TTM June-20 TTM June-21 TTM June-22 One-India (INR Cr.) One-India (Ex-Covid) YoY growth One-India (INR Cr.) One-India (Ex-Covid) YoY growth Branded Prescription (Ex-Covid) YoY growth Branded Prescription (Ex-Covid) YoY growth Branded prescription business Trade generics business Consumer health business ❖ Healthy traction across our flagship brands ❖ Sustained momentum across therapies in with steady order flow across regions; ❖ Robust traction in anchor brands as well as core portfolio driven by pricing & new Continued channel engagement and transitioned brands introductions governance ❖ Sharp consumer insighting and strong on- ❖ Healthy market share2 and rank2 across ❖ 16 new launches; includes anti-diabetic ground execution therapies and ophthalmic products 1. CHL –Cipla Health Limited │2. Market data as per IQVIA MAT June 2022 | 3. Trailing 12 months Strategic product deals and investments in Q1FY23 ContinCuLeIdC sKtr eTnOg tEhDenITin Mg oAfS OTnEeR-I nTdITiaLEfr aSnTcYhLisEe with medium to long term growth levers Diagnostics Transaction description: Acquisition of 21.05% for ~INR 25 Cr. in Achira Labs, engaged in development and commercialization of point of care (PoC) medical test kits in India Strategic rationale: Cipla’s entry in the PoC diagnostics and AMR space through the design, development, and manufacturing of microfluidics-based technologies; increasing patient access to innovative, affordable and quality diagnostic solutions Including Endura Mass, Wellness Transaction description: Acquisition of Endura Mass, a Domestic Consumer renowned nutritional supplement brand in the category of Business under Cipla weight gain from Medinn Belle Herbal Care Private Limited Health expected to Strategic rationale: Expand Cipla’s wellness portfolio by foraying achieve annualized into new category nutritional supplements for weight gain revenue of INR 600+ Cr Digital Transaction description: Acquisition of additional stake for INR 25.9 Cr. In GoApptiv Private Limited; Cipla’s total stake increases to 22.02% on a fully diluted basis post investment (Initial investment in June 2020) Strategic rationale: Enable Cipla to further widen its patient reach to affordable and quality drugs with end-to-end brand marketing and channel engagement across tier 2- 6 towns in India by leveraging GoApptiv’s end to end digital solutions Global consumer wellness franchise committed to provide a holistic wellnCeLsICsKs oTlOu tEioDnITs ;MimASpTrEoRv TinITgLEh SeTaYltLhE outcomes Consumer franchise in India Flagship Brands 1,100 INR Cr+ 9% ↑ 22% ↑ 22% ↑ 18% ↑ 25% Trailing 12-month revenue Contribution of Global Consumer franchise to overall ↑ 45% ↑ 30% ↑ 10% ↑ 35% revenues in Q1FY23 Consumer franchise in South Africa 17% Flagship Brands 1,275 Q1FY23 YoY growth in Global Consumer franchise ZAR m+ Trailing 12-month revenue ZAR 80m+ ZAR 80m+ ZAR 95m+ ZAR 100m+ ZAR 55m+ Trailing 12 month Trailing 12 month June-22 YoY growth June-22 revenue SAGA1: South Africa, Sub-Saharan Africa and Cipla Global Access CLICK TO EDIT MASTER TITLE STYLE $ Mn South Africa2 Q1 Y-o-Y ❖ Muted growth in private primary sales with recovery 8 Brands launched expected in Q2FY23; traction in tender business across multiple therapies in Q1FY23 ❖ In secondary terms, strong demand continues with South Africa private business continuing to outperform market 27 ❖ Growth diversified across base and new product 28 4-in-1 fixed dose anti-retroviral portfolios treatment launched in 22 ❖ Healthy ranks & market positions in key therapy areas partnership with DNDi3 20 Market Segment Market Rank Market share Cipla Growth Market Growth 64 South Africa prescription 3 7.7% 10% 6.4% 53 South Africa OTC 3 7.0% 11.6% 8.0% South Africa overall 3 7.4% 10.6% 7.0% Q1FY22 Q1FY23 Sub-Saharan Africa (SSA) & Cipla Global Access (CGA) ❖ SSA: Traction driven by continued order flow across regions South Africa Others (SSA & Private CGA) ❖ CGA: Performance in-line with expectations driven by strong order flow for TLD South Africa Tender 1. Financial numbers are rounded off │2. Market data as per IQVIA MAT May 2022 | 3. Drugs for Neglected Diseases initiative North America: Core formulation business continues steady momCeLnICtuKm TO; c EoDnITt iMnuAeSdTE sRe TrvITicLEe SaTbYiLliEty across categories North America 10% Steady momentum in core formulation business led by contribution from respiratory and peptide $ Mn Q1FY23 YoY growth assets amongst others Q1 Y-o-Y in $ terms 155 10% 16.5% Albuterol total market share1 141 33.4% Arformoterol total market share1 22% Q1FY23 YoY Growth in DTM respiratory franchise2 Q1FY22 Q1FY23 1. Market data as per IQVIA week ending 1stJuly 2022; 2.Excludes B2B revenue for the US market North America: Respiratory, Complex generics & Peptide pipeline CLICK TO EDIT MASTER TITLE STYLE Formulation / Brand name Pre-clinical Phase 1 Phase 2 Phase 3 Filed Approved Status Complex inhalation asset Filed in Q4FY20 Fluticasone + SalmetrolDPI Filed in Q1FY21 y (gAdvairDiskus®) r o t a Partnered Inhalation Asset Filed in Q3FY17 r i p s e R Complex Inhalation Asset Development in progress Clinical trials initiated in Complex Inhalation Asset Q4FY22 Nano Paclitaxel xs Filed in Q1FY17 ec (gAbraxane®) l p i r e m n Lenalidomide oe Filed in Q1FY18 CG (gRevlimid®) s Partnered Peptide Injectable Filed in Q4FY21 e l b a Peptide Injectable Filed in Q1FY22 t c e j n Peptide Injectable Filed in Q4FY22 i e d Partnered Peptide Injectable Filed in Q4FY22 i t p e P Partnered Peptide Injectable Filed in Q1FY23 ANDA1 & NDA Portfolio & Pipeline (As on 30th June 2022) CLICK TO EDIT MASTER TITLE STYLE 15 61 9 5 18 7 79 3 1 41 8 6 Approved Tentatively Under Approval ANDAs/NDAs Approved ANDAs ANDAs/NDAs 2 Cipla Ltd PEFPAR Invagen Partnered ANDAs/NDAs 164 18 71 253 Approved Tentatively Under Approval Total ANDAs & NDAs Approved ANDAs ANDAs & NDAs ANDAs & NDAs 1 Does not include Vet product ANDAs 2 PEPFAR approved ANDAs can be commercialised in US International Markets and API CLICK TO EDIT MASTER TITLE STYLE International Markets API $ Mn $ Mn Q1 Y-o-Y Q1 Y-o-Y 93 18% 79 41 -57% 17 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Key Business Highlights Key Business Highlights ❖ Strong DTM1 growth across geographies; ❖ Performance attributed to higher Q1FY22 offset by forex volatility in emerging markets base due to one-time profit share on an API and muted B2B demand in Europe supply ❖ Steady double-digit growth in secondary ❖ Continued traction with global seedings & terms during the quarter lock-ins 1. DTM –Direct to market Our Strategic Priorities for FY23 CLICK TO EDIT MASTER TITLE STYLE Accelerate growth Building big prescription brands across Driving penetration and Consumer insighting driving portfolio in One-India chronic therapies, improved accessibility of brands for unmet expansion to address wellness needs engine with sharp productivity and HCP knowledge chronic ailments in trade generics and purpose led brand experiences focus on; partnering Advancement on innovative consumer centric products across emerging channels to accelerate the trajectory of our Global Consumer Wellness franchise across India & South Africa Sustainable scale up our US core formulations sales driven by high serviceability of respiratory and peptide franchise; closelymonitoring upcoming high value complex launches in H2FY23 Continued execution on branded & generic portfolio, brand-building, portfolio interventions, launch excellence across DTM1 markets Continued cost focus, calibrated pricing actions and other interventions to navigate inflationary procurement, freight and other cost elements for insulating margins and maintaining consistent upward RoIC2 trajectory Driving value through digital adoption across businesses and functions with a dynamic agenda under Cipla Digital Health Ltd. Focus on regulatory compliance across manufacturing facilities and implement globally benchmarked ESG3 practices 1. Direct to market| 2. Return on Invested Capital (RoIC) = EBITDA -depreciation & amortization ÷Average [(Fixed assets including goodwill + Current assets excluding cash and cash equivalent) – Current liabilities excluding borrowing)]; Calculations based on FY22 reported EBITDA | 3. Environmental, Social, Governance Thank You Registered Office : Cipla Limited, Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013 For any queries, please contact Naveen Bansal Investor.Relations@cipla.com Ankit Bhembre Investor.Relations@cipla.com For more information please visit www.cipla.com