RPGLIFE

January 29, 2022 The Manager BSE Limited Listing Department Corporate Relationship Department Floor National Stock Exchange of India Limited 25, P.J. Towers Exchange Plaza, 5th Floor Dalal Street Plot No. C1, ‘G’ Block, Bandra-Kurla Complex Mumbai 400 001. Bandra (East), Mumbai 400 051. Symbol: RPGLIFE Scrip code: 532983 Dear Sirs, Sub: Investor Presentation Please find enclosed herewith a copy of Investor Presentation with respect to Unaudited Financial Results of the Company for the quarter and nine months ended December 31, 2021. Kindly take the same on record. Thanking you, Yours faithfully, For RPG Life Sciences Limited Rajesh Shirambekar Head – Legal & Company Secretary Encl.: as above Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. Theactualresults,performanceorachievements,couldthusdiffermateriallyfromthoseprojectedinanysuchforward-lookingstatements. The company operates in the Pharmaceutical segment. Some of the historical Profit and loss numbers which are sliced in the investor presentation for certain sales divisions are purely for broaderunderstandingforinvestorsofthebusinessofthecompanyanditsgrowthtrajectory.Theinformationcontainedinthesematerialshasnotbeenindependentlyverified.Noneofthe Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts anyresponsibility or liability whatsoever, whetherarisingintort,contractorotherwise,foranyerrors,omissionsorinaccuraciesinsuchinformationoropinionsorforanyloss,costordamagesufferedorincurredhowsoeverarising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contentsof thisdocument includingitsaccuracy,fairness,completenessor verification orfor anyother statement made orpurported to be madebyanyofthem,or onbehalf ofthem,and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertake no obligation to update or revise any information or the opinionsexpressed inthispresentation asa resultof newinformation, future eventsor otherwise. Anyopinionsor information expressed inthispresentation are subject tochange without notice. This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of RPG Life Sciences Limited Limited (the “Company”), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore.Anyperson/partyintendingtoprovidefinance/investintheshares/businessesoftheCompanyshalldosoafterseekingtheirownprofessionaladviceandaftercarryingouttheir own due diligence procedure to ensure that theyare making an informed decision. Thispresentation is strictly confidential and may not be copied or disseminated, in whole or in part,and inanymannerorforanypurpose.Nopersonisauthorizedtogiveanyinformationortomakeanyrepresentationnotcontainedinorinconsistentwiththispresentationandifgivenormade, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves aboutandobserveanysuchrestrictions.Byparticipatinginthispresentationorbyacceptinganycopyoftheslidespresented,youagreetobeboundbytheforegoinglimitations. 2 RPG Life Sciences Overview RPG Life Sciences, part of RPG Enterprises, is an integrated research based pharmaceutical Company operating in the domestic and international markets in the Leader in Immunosuppressants branded formulations, global generics and synthetic APIs space. Domestic Formulations (DF) 6 Leading Text Book Brands Develop, manufacture and market branded formulations in India & Nepal APIs 18% International Formulations (IF) 50+ Markets Presence Domestic International Develop, manufacture and sell oral solid dosage Formulations Formulations formulations in the generics and branded (DF) 64% (IF) 18% generics space across Regulated and Emerging Markets 3 Manufacturing Facilities APIs Develop, manufacture and sell high value 1100+ Employees synthetic APIs in the general therapeutic category 3 RPG Life Sciences Product Portfolio Key Therapies Key Products Immunosuppressant Portfolio Text Book Brands New Portfolio Specialty Chronic Life Cycle Management • Nephrology (Existing Products) Azathioprine • Rheumatology Trastuzumab Domestic Azathioprine • Oncology Vildagliptin Formulations Spironolactone • Orthopaedics Adalimumab (DF) • Gastroenterology Mycophenolate Mofetil Diphenoxylate HCl Teneligliptin • Cardiology Bevacizumab • Diabetology Cyclosporine Naproxen Rituximab • Neuropsychiatry Haloperidol Tacrolimus Tofacitinib Disopyramide Phosphate International Key Products Formulations Generics - Azathioprine, Sodium Valproate PR, Nicorandil (IF) Branded Generics – Siloxogene, Azoran, Mofetyl, Arpimune, Dipsope Key Products APIs APIs - Quinfamide, Azathioprine, Haloperidol, Risperidone, Propantheline Bromide, Nicorandil, Pantoprazole, Diphenoxylate 4 Key Financials, Business Highlights & Strategy 5 Key Highlights of 9M FY22 RPGLS growing faster than the market at 19.9%% vs 14.9% (IPM)* Healthy double-digit growth in revenues from operations Profit margins’ record-setting trajectory continues – EBITDA margin reaches 22% & PBT margin 19% on YTD basis 9M FY22 records significant PBT margin expansion across the segments Sales health parameters in healthy zone and consistently improving RPGLS iconic brands being built through diligent life cycle management strategy New Products** contribution (18%) significantly improved in Domestic Business in line with our priorities International Formulations Business also being strengthened by Continuous thrust on New Products/Customers/Markets Company continues to remain debt free with highest ever net cashflow generated from operations *AIOCD AWACS MAT Dec’21 report **Launched FY20 Onwards 6 Company Financial Performance – Profit Margins Upward y-o-y Record setting Trajectory continues – EBITDA Margin reaches 22% & PBT Margin 19% (9M FY22) EBITDA% 22% PBT% 18% 19% 16% 14% 12% 11% 10% 10% 10% 9% 8% 6% 6% 5% 4% 4% 4% 4% 1% 0% 0% 7 Key Financials : 9M FY22 (All figures in Rs. Crores except EPS in Rs.) Revenue from Operations EBITDA & EBITDA Margin PBT & PBT Margin 336.4 74.6 296.4 62.2 57.9 44.6 22% 19% 20% 15% FY21 9M FY22 9M FY21 9M FY22 9M FY21 9M FY22 9M PAT & PAT Margin EPS 44.0 26.6 33.1 20.0 11% 13% FY21 9M FY22 9M FY21 9M FY22 9M Key Financials’ Trends (All figures in Rs. Crores except EPS in Rs.) Revenue from Operations EBITDA & EBITDA Margin PBT & PBT Margin 70.8 74.6 389.1 59.9 375.6 62.2 53.6 41.8 34.4 336.4 330.2 15.1 10% 16% 18% 22% 5% 11% 14% 19% FY19 FY20 FY21 FY22 9M FY19 FY20 FY21 FY22 9M FY19 FY20 FY21 FY22 9M PAT & PAT Margin EPS 44.0 26.6 40.1 24.2 29 17.5 10.8 6.5 3% 8% 10% 13% FY19 FY20 FY21 FY22 9M FY19 FY20 FY21 FY22 9M Key Financials’ Trends ROCE% ROE% Debt/Equity Ratio 18.5% 0.22 23.6% 24.3% 16.4% 11.0% 6.7% 0.06 0.01 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Company becomes Debt-free 10 Business Segment-wise Performance : 9M FY22 Sales (Rs Crs) • Domestic Formulations contributed 64% to total Sales of 9M FY22 Domestic • 20% Sales growth majorly driven by Legacy Products 218.5 Formulations • Better than Market growth despite Covid headwinds due to second wave 182.6 • New Products Contribution improved to 18% on account of New launches in Specialty (DF) (Biosimilars) & Chronic (Gliptins) segments and Line Extensions for Legacy Products • Salesforce Productivity Improved to Rs 5 Lacs FY21 9M FY22 9M 63.1 59.9 • International Formulations contributed 18% to total Sales of 9M FY22 International • Sales Degrowth of -5% due to political instability in Myanmar, one of our key emerging Formulations markets, and, Medical caution in prescribing immunosuppressants in view of COVID (IF) • New Products/Customers/Markets Contribution improved to 31% FY21 9M FY22 9M 59.7 51.0 • API contributed 18% to total Sales of 9M FY22 API • 17% Sales Growth majorly driven by niche products • Continuous thrust on new customer development FY21 9M FY22 9M 11 Key Financials : Q3 FY22 (All figures in Rs. Crores except EPS in Rs.) Revenue from Operations EBITDA & EBITDA Margin PBT & PBT Margin 24.7 115.6 107.6 20.6 21.4 17.1 21% 16% 18% 20% FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 PAT & PAT Margin EPS 14.6 12.9 8.8 7.8 13% 12% FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 RPG Life Sciences ICRA Rating Upgraded in FY21 Long term rating upgraded to A from A- Short term rating upgraded to A1 from A2+ Outlook on long term rating has been retained as Stable. The rating upgradation factors:  Considerable improvement in the operating performance on the back of • Improvement in sales hygiene • Cost rationalisation measures adopted over FY2020 and H1 FY2021.  A robust capital structure and strong coverage indicators based on • Decline in the company’s debt levels • Healthy cash flows • No major debt-funded capital expenditure (capex) 13 Domestic Formulations (DF) • Operating in Mass/Mass-specialty and Specialty segments • Presence in both Acute & Chronic therapy areas • Leading Text Book Brands – Azoran, Aldactone, Lomotil, Naprosyn, Serenace, Norpace • Leader in Immunosuppressant category • Good Customer Coverage - Cardiologists, Diabetologists, Urologists, Nephrologists, Rheumatologists, Oncologists • New Product Launches in New Category – Biosimilars Business Strategy 5 Pillars of Profitable Domestic Business Growth 1 2 3 4 5 Product Portfolio Strategic Brand Assets Customer coverage Sales force Profitability Rejuvenation by building through Life deepening in targeted effectiveness improvement by Opex building Chronic & Cycle Management by therapies by expanding augmentation by control, efficient Specialty Portfolio with introducing Line field force and deploying competencies building manufacturing New Launches Extensions digital and productivity operations and sales enhancement initiatives hygiene 14 International Formulations (IF) • Strong presence in immunosuppressant segment (Azathioprine) • Footprints across Regulated and Emerging Markets - Canada, UK, Germany, France, Australia, South East Asia, Africa • Long lasting, impeccable supply track record and business relationship with some of the leading generic players of the world • High Quality and Process orientation making us a preferred partner Business Strategy 3 Pillars of Step-wise Global Business build up 1 2 3 Build Focus on products with specific/ Expand footprints in Immunosuppressant competitive advantage e.g. Nicorandil Emerging Markets like Portfolio (Special manufacturing conditions like Myanmar, Vietnam, low RH), Sodium Valproate PR Philippines, Sri Lanka, (Complex Generic product) Egypt, Sudan 15 APIs • High Value, Low Volume Niche APIs • Mature Stable Molecules • Provides backward integration to International Formulations business • Footprints across geographies - LATAM, Iran, Germany, China, South Korea, Bangladesh, Egypt, India, etc • Strong customer focus - Long lasting relationship with Big Pharma and Leading Generic Firms. Business Strategy Business Continuity 1 2 3 Efficiency enhancement Niche Product Focus - Mature Stable Molecules Quinfamide – Market/Customer Expansion 16 Manufacturing Facilities Formulations Unit 1, Ankleshwar • F1 unit caters to the Domestic and Emerging Markets • Multipurpose plant with dedicated product lines for Oral Dosage forms including Tablets, Liquids and Powder • WHO, Kenya, Nigeria approved Formulations Unit 2, Ankleshwar • F2 unit caters to the Regulated Markets • Dedicated product lines for Oral Dosage (Capsules & Tablets) • Equipped to handle low RH and low temperature conditions products • WHO, EUGMP (from Hamburg Health authority), Canada, Ethiopia, Kenya, Sudan, Nigeria approved API Unit, Navi Mumbai • MF1: Multipurpose unit catering to emerging markets including India • MF2: Dedicated Immunosuppressant facility catering to Regulated and Emerging markets including India • MF3: Multipurpose unit catering to Regulated and Emerging markets including India • WHO, TGA Australia approved & Written Confirmation (WC) received from CDSCO 18 Strong Backend Capabilities Quality Regulatory • All Critical SOPs harmonized through CQA • Well established & evolved Regulatory function catering • Quarterly Internal audit of all plants by CQA to Canada, UK, EU, Australia and Emerging markets • All critical deviations, change controls and market • Expertise of eCTD submissions complaints investigation approved by CQA • Integrated Project Management activities Formulations R&D Digitization Focus Areas • In addition to Formulations Development of IR, have • Quality Management systems : e-QMS, e-DMS, e-LMS. capabilities to develop Modified Release & Complex • Access to critical manufacturing equipment through IRIS Generics scanner • Dossiers Gap Analysis and fulfilment • All QC instruments attached with dedicated software • Tech Transfer/Site transfer activities and server • GLP compliant Analytical Lab for Development and • All stability chambers with software control Validation of Analytical Methods • Secondary packing Complies with EUFMD requirement for Track and Trace. 19 RPG Life Sciences response to COVID-19 A passionate call to the entire organization to go all out to ensure continuous availability of our life saving, critical medicines to our patients. Our Plants did not stop even for a single day. Every patient, who asked for our critical medicines, serviced by door delivery. 100% Employees are vaccinated with Dose 1 and 99% stand fully Vaccinated Key Priorities Employees Care Business Continuity Community Service • Strict protective measures across all Conserve Cash • “SafeSeniors” tool development for locations • Sustained OPEX control measures early detection of risk in vulnerable - Detailed SOP • Company became debt-free Senior citizen segment - Immunity boosting measures - Special Care for co-morbidities Supply Continuity • Community Servicing through RPG - Enhanced medical Insurance • RM/PM availability through proactive planning Foundation - sanitizers, masks, gloves, - Advisories/Sessions and relationship management with key vendors PPE Kits; meals, etc. - PPE kits, Masks and Sanitizers Customer Outreach through Digital • Continuous Digital Connect/Engagement • Deployment of Digital initiatives like e-CMEs, with employees and their families teleconsultation facilitation service, webinars, etc. 21 New Digitalization Initiatives to Transform Business Game Changer Customer Connect Initiative Employee Connect Initiatives Digital Platform for comprehensive Salesforce Operations tracking: #Customer visits, customer engagement activities, sales performance analytics etc Anytime, Anywhere Doctor Support HR Chatbot for quick resolution of queries Initiative related to HR process and company policies A digital platform for Salesforce Grievance Industry First Initiative Redressal Initiatives in Plant Operations e-QMS: Digital Platform to track all 6 Quality parameters Range of Services e-DMS: Digital Platform to manage all manufacturing/quality documents >29000 Key Opinion Leaders e-LMS: Digital Platform to Track Training Sessions on CGMP e- Access: Retina Scanning for machine access All above represent Illustrative list of the initiatives 22 People Initiatives to build Performance Culture with focus on Happiness I Love My Work I Feel Valued I am Growing RPGLS Heroes Outperformance We Skill. You Grow. Recognition You Excel. We Applaud. Competency Building Motivation Continuum Continuum Akanksha Career Development High Happiness I Live a Purposeful & Quotient I cherish our Culture Balanced Life RPGLS Parivar RPGLS Values I Feel Connected Tyohar-Utsav Champions Shrankhla Living Organizational Digital RPGLS Family RPGLS Happiness Values Get Together Forums Leadership Connect – Month & Quarter 23 FY22 Priorities Ensure 100% double dose vaccination of employees Maintain growth momentum in top-line and bottom-line across the business segments Continue to grow our presence in chronic and specialty therapies in DF through new product launches and new customer segments Continue to build iconic/legacy brands into strategic assets Continue to enhance salesforce productivity through targeted measures New customer acquisitions in IF and APIs businesses Accelerate digital transformation initiatives across frontend and backend to transform business Building a Happy and Performance Driven Culture 24 RPG Life Sciences Bagged Top Awards from IDMA Prestigious Awards from IDMA - Indian Drug Manufacturer’s Association in January 2020 (consists of 1000+ pharma companies) IDMA Quality Excellence IDMA Corporate Citizen Award 2019 Award 2019 (GOLD AWARD) IDMA Margi Patel Choksi Memorial Best Patent Award 2019 26 RPG Life Sciences is one of the India’s Best Workplace in 2020 – Amongst Top 100 • Ranked 85 amongst India's 100 Best Companies to Work For 2020 • One of India's Best Workplaces in Biotechnology & Pharmaceuticals ​by Great Place to Work® Institute ​ 27 Media Recognition • Not a single day Plant stoppage • Home Delivery of critical life saving medicines to all the patients 28