#1Glenmark Life Sciences Ltd. Investor Presentation Q2 FY24 Є Glenmark LIFE SCIENCES#2Financial Performance Review Є Glenmark LIFE SCIENCES#3Q2 FY24 | Highlights Dr. Yasir Rawjee Managing Director & Chief Executive Officer REVENUE 5,954 (IN MILLIONS) EBITDA (IN MILLIONS) PAT (IN MILLIONS) 1,725 1,187 16.9% 2.9% YoY QoQ 12.2% YoY (11.5%) QoQ 11.1% YoY (12.3%) QoQ "I am pleased to share that we continue to deliver remarkable growth, propelled by a robust GPL business and steady external API business. Geographically, regulated markets including the US, Europe, LATAM and India continue to spearhead our growth. In light of the announced change in ownership, I see this development as a pivotal opportunity to augment our standing in the API industry and continue the trajectory characterised by growth and healthy margins. Looking ahead, enhanced visibility towards the H2FY24 demand for our generic API and CDMO business bolsters our confidence of delivering growth in FY24" GLS registered a revenue from operations of ₹ 5,954 Mn for Q2FY24, recording a strong growth of 16.9% YoY and 2.9% QoQ Gross Margins improved in Q2FY24 trending at 54.1%, up 120 bps YoY; EBITDA margins at 29.0% down 120 bps YoY; driven by better gross margin and higher employee expense Revenue from Generic API business was Rs. 5,428 Mn, up 19.7% YoY whereas CDMO business revenue was Rs. 253 Mn, down 18.1% YoY Generated strong free cash flow of Rs. 1,535 Mn leading to Cash and Cash Equivalents as of 30th September 2023 at Rs. 4,430 Mn GLS: Glenmark Life Sciences; GPL: Glenmark Pharmaceuticals Ltd. (parent co.) 3 Є Glenmark LIFE SCIENCES#411.94 8.57 33.7% m 2,093 EBITDA PAT (In Millions) EBITDA Margin 33.7% 1,950 29.0% 1,725 21.0% 1,069 19.4% 1.050 23.6% 1,464 PAT PAT Margin 23.4% 1,355 19.9% 1,187 EPS (In ) 8.72 11.05 9.69 H1 FY23 H1 FY23 H1FY24 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 FY23 FY23 FY23 FY24 FY24 FY23 FY23 FY23 FY24 FY24 FY23 FY23 FY23 Q1 FY24 Q2 FY24 Q2 Q3 Q4 Q1 Q2 FY23 FY23 FY23 FY24 FY24 17.5% 31.0% 31.3% 21.6% 21.7% 3,675 11,738 9,992 3,099 20.7 17.6 2,542 2,156 30.2% 28.1% Q2 & H1 FY24 Performance Strong growth with stable margins Revenue (In Millions) 16.9% EBITDA (In Millions) 6,213 5,407 5,093 5,785 5,954 1,537 1,521 H1 FY23 H1 FY23 H1 FY24 H1 FY24 4 H1 FY24 Є Glenmark LIFE SCIENCES#5P&L Highlights | Q2 & H1 FY24 Particulars (In Millions) Revenue from Operations Gross Profit Q2 FY24 Q1 FY24 QoQ Q2 FY23 YOY H1 FY24 H1 FY23 YOY 5,954 5,785 2.9% 5,093 16.9% 11,738 9,992 17.5% 3,223 3,304 -2.5% 2,693 19.7% 6,527 5,303 23.1% Gross Profit (%) 54.1% 57.1% 52.9% 55.6% 53.1% Other Income 54 18 198.2% 100 -46.3% 72 195 -63.0% Employee Benefits Expense 667 481 38.6% 474 40.7% 1,148 878 30.8% Other Expenses 885 891 -0.7% 783 13.0% 1,776 1,521 16.8% EBITDA 1,725 1,950 -11.5% 1,536 12.2% 3,675 3,099 18.6% EBITDA Margin (%) 29.0% 33.7% 30.2% 31.3% 31.0% Depreciation and Amortisation Expense 131 126 4.1% 99 32.9% 257 198 30.0% Finance Costs 4 4 0.6% 1 195.3% 8 3 164.9% PBT 1,589 1,820 -12.7% 1,436 10.7% 3,409 2,898 17.6% PBT Margin (%) 26.7% 31.5% 28.2% 29.0% 29.0% PAT 1,187 1,355 -12.3% 1,069 11.1% 2,542 2,156 17.9% Net Margin (%) 19.9% 23.4% 21.0% 21.7% 21.6% 5 e Glenmark LIFE SCIENCES#6Strong Returns Indicators ROICE Fixed Assets Turnover Working Capital Days 40% 202 36% 176 171 34% 36% 3.4 3.3 152 170 31% 2.9 2.9 2.8 98 102 104 99 89 152 136 120 116 126 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 -48 -43 -53 -67 -60 . ROICE is tracking at ~36% - Higher capital employed driven by calibrated Capex strategy . FATR is 2.8 times – Asset turn trending slightly lower due to Capex cycle . WC days at 170 days - Improved working capital due to better Debtor offset by higher inventory days and lower Payable days Strong Balance Sheet - Strong free cash generation of ₹1,535 mn during the quarter leading to Cash & Cash Equivalents of 4,430 mn as on 30th Sept 2023 6 FY20 FY21 FY22 FY23 H1 FY24 Inventories Days AR days AP days Total WC days Є Glenmark LIFE SCIENCES#7EBITDA (In Millions) EBITDA EBITDA Margin Financial Performance Track Record Robust growth and profitability indicators over the years Revenue (In Millions) CAGR 11.4% 21,612 21,232 18,852 15,373 14,050 PAT (In Millions) PAT EPS (In) 4,670 4,187 31.0% PAT Margin 20.8% 20.4% 18.6% 19.7% 21.6% 31.5% 31.4% 29.7% 30.6% 6,308 5,919 6,712 3,516 3,131 2,927 38.1 35.6 32.6 29.0 27.1 Є Glenmark LIFE SCIENCES FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 4,840 4,298 Note: Numbers of FY19 are based on Proforma Financials. 7#8Business Performance Review Є Glenmark LIFE SCIENCES#9Segment Performance | Generic & CDMO business Generic API (Revenue In Millions) 4,533 4,799 5,299 5,042 CDMO (Revenue In Millions) 568 5,428 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 0 • 95% Generic API revenues in Q2FY24 increased by 19.7% YoY and by 7.7% QoQ Generic API business was driven by robust growth in regulated markets Regions like US, LATAM and Europe contributed to strong growth momentum 6 309 279 464 253 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 5% • CDMO business witnessed a de-growth of 18.1% on YoY basis driven by temporary low demand for one of the CDMO products Multiple discussions ongoing with companies globally for additional business opportunities Є Glenmark LIFE SCIENCES#10Segment Performance | GPL vs. External GPL (In Millions) 26.0% External GPL (In Millions) 37.2% 33.9% % of Total Revenue 33.5% 2,309 29.0% 1,594 1,338 1,964 2,000 External % of Total Revenue 74.0% 3,954 71.0% 3,904 66.1% 3,814 3,821 66.5% 3,755 62.8% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 34% • GPL business in Q2FY24 increased 49.5% YoY and by 1.8% QoQ GPL business contributes 33.5% of the total revenue from operations C 66% 10 10 External business grew by 5.3% YoY and 3.5% QoQ Slower growth in external business was due to subdued growth in CDMO business whereas external generic API business grew strongly in regulated markets Є Glenmark LIFE SCIENCES#11Market and Therapeutic Area Mix Market Mix 18% 19% 25% 22% 20% Therapeutic Area Mix 29% 34% 32% 39% 39% 8% Emerging Markets 7% 53 14% 82% 81% 5% 6% 3% 5% 6% 4% 3% 4% 17% 12% 18% 15% dido Others Pain Management Diabetes 75% 78% 80% CNS ■Regulated Markets CVS 42% 40% 43% 36% 38% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Regulated markets contribution is at 80% in Q2FY24 driven by growth in US, LATAM, Europe and India During Q2FY24, regulated market contributed 80% of the total portfolio compared to 75% in Q2FY23 CVS and CNS portfolio continued to deliver a strong growth Our key focused area of chronic therapies contributed 68% of the revenue in Q2FY24 11 Є Glenmark LIFE SCIENCES#12Company Overview Є Glenmark LIFE SCIENCES#13Global Footprint • Filed 489 DMFS and CEPS across major markets; United States, Europe, Japan, Russia, Brazil, South Korea, Taiwan, Canada, China and Australia 30+ ROW 70+ 370+ 95 122 157 Regulated Markets Emerging Markets 50+ 76 (Brazil) India Mix of Regulated and Emerging 13 10+ 18 125+ 10+ 21 Number of Number of customers. As of Sep 30, 2023 DMF/CEP filings serviced in FY23 Є Glenmark LIFE SCIENCES#14R&D Capabilities Cumulative Filing Status R&D Spend (In Millions) North Therapy Europe Japan Brazil Australia ROW Total America R&D Spend CVS 37 31 4 21 10 33 136 As % to Sales CNS 36 22 8 13 2 14 95 3.1% Diabetes 9 5 8 12 34 3.0% Pain Management 1 2 4 1 8 16 2.7% 2.6% Others 74 35 6 30 8 55 208 652 Total 157 95 18 76 21 122 489 2.1% 572 400 405 367 • DMF/CEPS filing continues across major markets in Q2FY24, taking the total cumulative filings to 489 as on 30 Sep, 2023. 3 new products added to the grid of which 1 is High potent API (HP API) / oncology molecule and 2 are synthetic small molecules. The HP API portfolio now extends to 12 products with an addressable market of $21bn (Source: IQVIA, MAT June 23). 3 products are validated and 3 products are in advanced stage of development. Development progressing well for new iron complex added last quarter to the existing grid of 3 molecules, each backed by customer interest. Filing completed for 1 iron complex with 2 others in advanced stages of development. Total addressable market of $1.8 bn (Source: IQVIA, MAT June 23). FY20 FY21 FY22 FY23 H1 FY24 14 Є Glenmark LIFE SCIENCES#15Quality-focused, compliant manufacturing & R&D infrastructure Manufacturing Infrastructure R&D Infrastructure Location Annual Installed Capacity (Jun-23) Last USFDA Inspection Date Ankleshwar, Gujarat 742.2 KL* July 2019 Approvals USFDA, MHRA (UK), FIMEA (Finland), Romania (Europe) PMDA (Japan), COFEPRIS (Mexico), Health Canada, KFDA (South Korea), Gujarat FDCA Dahej, Gujarat 381.9 KL Oct 2018 USFDA, EDQM (Europe), PMDA (Japan), KFDA (South Korea) Mohol, Maharashtra 49.1 KL March 2018 USFDA, Maharashtra FDA Kurkumbh, Maharashtra 24.6 KL -NA- Maharashtra FDA Mahape, Navi Mumbai ■ R&D for new product ■ development and complex molecules High-end analytical equipment for characterization Ankleshwar, Gujarat ■ Cost improvement programs and process improvements ☐ Dahej, Gujarat Oncology R&D ■ Cost improvement programs and process improvements * Additional 208KL will be further added to the capacity in FY24 at Ankleshwar, Gujarat. 15 Є Glenmark LIFE SCIENCES#16Strategy Going Forward Є Glenmark LIFE SCIENCES#17Strategic Growth Levers 1 Gx API Business ✓ New product launches ✓ Geographical expansion ✓ Focus on new markets becoming more regulated ✓ Pursue 2nd source opportunities with top generic players New Growth levers Ramp up CDMO portfolio ✓ Expand into complex API platforms ✓ Iron compounds ✓ Oncology Operational efficiencies ✔ Debottlenecking ✓ 2nd/3rd generation process adoption ✓ Backward integration ✓ Reduce carbon footprint 2 4 ✓ Adoption of flow chemistry in manufacturing ✓ Pursue AVD opportunities 3 Capacity ✓ Greenfield - Solapur, 1000MT (CTE Received) ✓ Brownfield – Dahej, 240KL (Completed) ✓ Oncology block - Dahej (Completed) ✓ Backward integration - Ankleshwar (400 KL of which 192 KL is completed) ✓ Build R&D capability for new growth levers 17 0 Є Glenmark LIFE SCIENCES#18Future Capacity Expansion Plan Expansion Type Division Location Status & Planned Capacity Operational Timelines 208 KL (Under Construction) FY24 Brownfield API/Intermediate Ankleshwar Planned addition of 280KL-300KL FY25-FY26 Brownfield API Dahej Planned addition of 220KL-240KL FY24-FY26 Greenfield API Solapur CTE received for 1,000MT ~500 KL capacity will be operational by FY26 FY26 Total Reactor Capacity Expansion Plan (KL) 2,405 Capacity 1,792 1,456 Progress by Year 1,198 765 FY22 FY23 FY24E FY25E FY26E 18 ✓ Backward Integration plant at Ankleshwar of 208KL is under construction. ✓ Engineering work started for construction at Solapur Plant of 200KL (Phase 1). ✓ Solapur's further capacity expansion will be calibrated as per the volume demand Є Glenmark LIFE SCIENCES#19Є Glenmark e LIFE SCIENCES Thank You FOR FURTHER INFORMATION CONTACT Email: [email protected] ERNST & YOUNG LLP - INVESTOR RELATIONS DIWAKAR PINGLE Email: Diwakar. [email protected] RAHUL THAKUR Email: [email protected] CORPORATE OFFICE: 4th Floor, OIA House, 470, Cardinal Gracious Road, Andheri (E), Mumbai, 400 099, India. REGISTERED OFFICE: Plot No. 170-172, Chandramouli Industrial Estate, Mohol Bazarpeth, Solapur - 413 213, India. T: 91 22 68297979 CIN: U74900PN2011PLC139963 Website: www.glenmarklifesciences.com 19