#110000 000000 Creating Lasting Value Investor Presentation - March 2022 NSE:SUNPHARMA | BSE:524715| Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM SUN PHARMA#2Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", “aim”, “will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate”, “intend”, "plan", "contemplate", "seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties 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, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Sun Pharmaceutical Industries Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. SUN PHARMA 2#3Contents 1 Sun Pharma at a glance 2 Long-term Strategy 3 Global Specialty Initiatives 4 5 Revenue Composition, History & Acquisition Track Record Business Operations, R&D, Manufacturing 6 Corporate Governance 7 8 Financials - P&L, Balance Sheet, Cash Flows & Ratios Key Milestones Targeted 00 SUN PHARMA 3#4Sun Pharma at a glance US India 4th Largest Global Specialty Generic Company* Emerging Markets Rest of World Manufacturing Footprint Market Presence Employees Quality Compliance R&D and Manufacturing Addressable Segments • • Ranked 9th in US Generics Market## No. 1 Pharma Company in India Amongst the largest Indian Pharma Company in Emerging Markets • Expanding presence in Rest of World. . ⚫43 manufacturing sites across the world Presence in more than 100 countries across branded and generic markets • 37,000+ global employee base • • Multiple manufacturing facilities approved by various regulatory authorities across the world including USFDA ⚫ Capabilities across dosage forms like injectables, sprays, ointments, creams, liquids, tablets and capsules •Specialty products, branded generics, complex generics, pure generics & APIS SUN PHARMA *Source: Evaluate Pharma Estimates for 12 months ended Dec 2020 ## Source: IQVIA data for 12 months ended Dec 2021 4#5World's 4th Largest Specialty Generic Pharma Co SUN PHARMA Teva 2020 Worldwide Generic Sales (US$ in billions) Novartis Viatris Sun Pharma + Taro Pfizer Fresenius 5.3 3.8 3.6 3.3 Aurobindo 3.0 Apotex 2.5 Endo 1.9 Lupin 1.9 Dr. Reddy 1.9 Nichi-Iko 1.9 Sawai 1.8 STADA 1.8 Himka 1.7 Aspen 1.7 8.5 8.3 Source: Evaluate Pharma Estimates for 12 months ended Dec 2020 5#6Sun Pharma today SUN PHARMA US Formulations 9th largest generics company in US* with a strong pipeline (88 ANDAs & 13 NDAs awaiting approval) Presence in Specialty branded & generics segments with more than 560 approved products FY21 sales: Rs. 100,921 mn India 33% FY21 Geographical sales split India Branded Generics No.1 ranked with 11 classes of doctor categories ⚫ Leading position in high growth chronic therapies Specializes in technically complex products FY21 sales: Rs. 103,432 mn Market cap: US$ 29 bn (1) Gross Sales: Rs. 332,331 mn EBITDA: Rs. 82,263 mn (24.8% margin) R&D Investment: 6.5% of Sales Globalized supply chain Strong balance sheet Share Revenue Emerging Markets 18% Rest of World (ROW)# 15% India Branded Generics 31% API & Others FY21 6% International 67% 54% owned by promoter group US Formulation 30% Note: Emerging Markets Presence in about 80 countries across Africa, Americas, Asia and Eastern & Central Europe Key focus markets - Romania, Russia, South Africa, Brazil & Mexico and complementary & affiliated markets FY21 sales: Rs. 57,840 mn (1) As of Mar, 17 2022 using spot exchange rate of INR/USD = 75.81 # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. All sales numbers in US$ for 12 months ended March 31, 2021 * Source: IQVIA data for 12 months ended December 2021 Rest of World (ROW) Presence across key markets in Western Europe, Canada, Japan, Israel, A&NZ and other markets ⚫ Product portfolio includes specialty products, differentiated offerings for hospitals, injectables & generics for retail market FY21 sales: Rs. 48,956 mn 6.#7Driving Sustainable Long Term Growth Enhance share of specialty business Achieve differentiation by focusing on technically complex products Focus on key markets - achieve critical mass Speed to market Ensure compliance with global regulatory standards Sustainability Committed to - Governance, Community Upliftment, Access to Affordable Healthcare & Environment Conservation Growth and Sustainability Cost leadership 0 Balance profitability & investments for future Business development Increasing contribution of specialty and complex products Future investments directed towards differentiated products SUN PHARMA Optimize operational costs Vertically integrated operations Use acquisitions to bridge critical capability gaps Focus on access to products, technology, market presence Ensure acquisitions yield high return on Investment • Focus on payback timelines#8Our Specialty Portfolio Indication For plaque psoriasis SUN PHARMA Ilumya/ Ilumetri Cequa • Launched in US in October 2018 & in Australia in Dec-2018, Phased launch in Europe by Almirall starting December 2018 onwards • Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were maintained over five years • Winlevi Absorica LD • Evaluating new indications for Ilumya - Phase-2 data shows potential to improve joint & skin symptoms of Psoriatic Arthritis. Commenced Phase-3 trials in 2020 Out licensed to CMS for Greater China market & to Hikma for Middle East & North African markets • Launched in Japan in September 2020 and in Canada in October 2021 •Indication For dry eye disease • Launched in US in October 2019 • Out-licensed to CMS for Greater China market in June 2019 • Launched in Canada in January 2022 For the topical treatment of acne vulgaris in patients 12 years of age and older Launched in US in November 2021 • Indication - For the treatment of severe recalcitrant nodular acne that cannot be cleared up by any other acne treatments, including antibiotics. • Launched in US in February 2020 • Indication - In combination with BLU-U (Blue Light Photodynamic Therapy Illuminator) for treatment of minimally to moderately thick actinic keratoses of the face, scalp, or upper extremities. Levulan Kerastick • Currently marketed in US for actinic keratosis 8#9Our Specialty Portfolio • Indication - For LABCC (locally advanced basal cell carcinoma) Odomzo • Currently marketed in US, Germany, France, Denmark, Switzerland, Australia and Israel Yonsa • Indication - For metastatic castration resistant prostate cancer in combination with methylprednisolone . Bromsite Xelpros Sprinkle Portfolio • Launched in US in May 2018 SUN PHARMA • Indication - For prevention of ocular pain & treatment of inflammation following cataract surgery Launched in US in November 2016 • Indication - For reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension • BAK (Benzalkonium chloride) free form of latanoprost • Launched In US in January 2019 Products using sprinkle technology for patients who have difficulty swallowing • Sprinkle versions of metoprolol (cardiology), rosuvastatin (cardiology) & duloxetine (neuro- psychiatry) commercialized in US between 2018-2019 Therapeutic solutions for long-term care (LTC) patients 9#10Our Specialty Pipeline 10 SUN PHARMA Route of Mechanism of Molecule/Asset Indication Pre-clinical Phase-1 Phase-2 Phase-3 Registration Approved Administration Action Ilumya Psoriatic IL-23 Injection (tildrakizumab) Arthritis Antagonist Psoriasis, Selective SIPR1 SCD-044 Atopic Dermatitis Oral Agonist MM-II Treatment of pain in osteoarthritis Liposomal intra Injection -articular lubrication GL0034 Type 2 Diabetes Injection GLP-1R Agonist 10 Creating Lasting Value - Investor Presentation#11Highly Diversified Revenue Base India Branded Formulations 31% Emerging Markets 18% Rest of World (ROW)# 15% FY21 Sales Rs. 332 billion API & Others 6% US Formulations 30% SUN PHARMA # Includes Western Europe, Canada, Japan, Australia & New Zealand, Israel and other markets. 11#12Impressive Track Record of Growth (All Figures in Rs Billion) CAGR for FY06-FY21 278.9 332.3 J 16.4 57.2 FY06 FY11 FY16 FY21 Sales 81.3 75.6 EBITDA 19.5 CAGR CAGR 4.9 21% 22% FY06 FY11 FY16 FY21 5.7 1.9 66.9 61.7 Operating 19.4 23.9 Cash Flow CAGR 26% FY06 FY11 FY16 FY21 32.8 50.0 Free Cash Flow 18.2 59.3 52.3 FY06 FY11 FY16 FY21 2.4 7.6 24.7 21.8 -1.6 FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 SUN PHARMA Adjusted Net Profit CAGR 17% Adjusted EPS (Rs/Share) CAGR 17% 12#13Profitability and Return Ratios. Gross Margin # 72.6% 71.5% 71.4% ။ 73.8% EBITDA Margin 19.9% 20.7% 20.0% 24.8% Adjusted Net Profit Margin 13.5% 12.7% 12.5% III 17.8% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ROCE ROE Market Cap (USD Bn) 13.5% 11.8% 11.1% 11.0% 12.5% 18.3 16.6 9.4% 8.7% 9.1% 11.9 19.3 FY18 FY19 FY20 FY21 # Gross margin= (Sales - Material Cost)/Sales*100) ROCE & ROE exclude one-time exceptional charges ROCE = EBIT / Average of (Total Assets - Current Liabilities) ROE Net Profit / Average Shareholders Equity FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 SUN PHARMA (Market Cap as on 31st March) 13#14Profitability Gross Margin 73% 72% 71% 74% 64% 65% 64% 64% FY18 FY19 FY20 FY21 SUN PHARMA EBITDA Margin Adjusted Net Profit Margin 25% 21% 20% 20% 20% 17% 16% 16% FY18 FY19 FY20 FY21 18% 13% 14% 13% 14% 10% 9% 9% FY18 FY19 FY20 FY21 Gross margin= (Net Sales - Material Cost) / Net Sales * 100 Sun Pharma Range of Top 9 Indian Pharma Cos. #Top 9 Indian Pharma company include Aurobindo, Cadila Healthcare, Cipla, DRL, Glenmark, Ipca, Lupin, Torrent and Wockhardt. Average 14 14#15Creating a Global Company SUN PHARMA DUSA a SUN PHARMA company MERCK Agreement with +Biosintez InSite Vision Solutions for Sight Began with 5 products Acquired Dusa Merck for in- licensing Tildrakizumab Acquired InSite Vision ophthalmic portfolio. a SUN PHARMA company Acquired Biosintez in Russia POLA PHARMA Acquired Pola Pharma in Japan In-lincesed WinleviⓇ (clascoterone cream 1%) for acne treatment in US & Canada Year 1983 1994 2010 2012 2013 2014 2015 2016 2018 2019 2020 2021 2022 IPO Rs. 550 Mn raised RANBAXY URL PHARMA LABORATORIES LIMITED TARO Acquired Taro Acquired URL Pharma Acquired Ranbaxy Sun Pharma Today Entry into Japan Launch of Specialty products -Acquired 14 • Ilumya brands from • Cequa Novartis • Odomzo • Acquired Global • Absorica LD rights for • Yonsa Cequa & Xelpros Odomzo . Sprinkle products 37,000+ Global Employee Base Invested Rs. 209 Bn in R&D till date (Since 1994) BSE SENSEX NIFTY Stock of the nation Part of NSE Nifty & BSE Sensex in India 43 Manufacturing facilities in 6 Continents 67% of sales from international markets 15#16Key Deals & Rationale Deals SUN PHARMA Year Country 2022 Taro (Sun's subsidiary company) acquired Alchemee Business from Galderma US, Japan, Canada In-licensed WinleviⓇ 2021 US & Canada (clascoterone cream 1%) Exclusive licensing agreement with Himka Middle East & 2020 for Ilumya North Africa 2020 Licensing agreement with SPARC for SCD-044 Global Rationale Acquired the "Proactiv", "Restorative Elements" and "In Defense of Skin" brands. Strengthens Taro's OTC portfolio Topical treatment of acne vulgaris Registration and commercialization of the product in all Middle East & North Africa (MENA) markets. Potential treatment for psoriasis, atopic dermatitis & other auto-immune disorders 2020 In-licensed Triferic brand from Rockwell Medical Inc. (USA) India Expands nephrology portfolio in India - for treating anaemia in hemodialysis patients. 2019 Licensing agreement with Astrazeneca UK for ready-to-use infusion oncology products Mainland China Access to oncology market in Mainland China 2019 Licensing agreement with CMS for Tildrakizumab, Cequa & 8 generic products Greater China Access to Greater China market 2018 Acquired Pola Pharma in Japan Japan 2016 Acquired global rights for Cequa & Odomzo Global Access to Japanese dermatology market. Enhances specialty pipeline. 2016 Acquired Biosintez Russia Local manufacturing capability to enhance presence in Russian market 2016 Licensing agreement with Almirall for Tildrakizumab for Psoriasis Europe Access to European market for Tidrakizumab 16#17Key Deals & Rationale Year Deals Country 2016 Acquired 14 brands from Novartis Japan Distribution agreement with 2016 India AstraZeneca 2016 Distribution agreement with AstraZeneca India 2015 Acquired InSite Vision Inc. US 2015 Distribution agreement with AstraZeneca India 2015 Sun Pharma - Ranbaxy Merger Global Markets In-licensing agreement with Merck for Global 2014 Tildrakizumab a biologic for psoriasis Markets 2014 Acquired Pharmalucence US 2012 Acquired DUSA Pharma, Inc. US Acquired Taro Pharmaceutical 2010 Industries Ltd. 1997 Acquired Caraco Rationale SUN PHARMA Entry into Japan Distribution services agreement in India for brand "Oxra" & "Oxramet"Ⓡ (brands of dapagliflozin, used for diabetes treatment) Distribution services agreement in India for brand "Oxra" & "Oxramet"Ⓡ (brands of dapagliflozin, used for diabetes treatment) Strengthens branded ophthalmic portfolio in U.S. Distribution services agreement in India for brand "Axcer"® (brand of ticagrelor, used for the treatment of acute coronary syndrome) Strengthen position in the Global Generic Pharma Industry, No.1 Pharma Company in India & Strong positioning in Emerging Markets Strengthening the specialty product pipeline Access to sterile injectable capacity in the US Access to specialty drug-device combination in dermatology segment Access to dermatology generic portfolio Manufacturing facilities at Israel & Canada Israel Detroit, US Entry into US Market 17#18US Business 30% of Revenues SUN PHARMA 18#19US Business at a glance 9th Largest Pharma Company in the US Generics Market * Dermatology Segment . Ranked 2nd by prescriptions## in the US dermatology market SUN PHARMA Comprehensive Portfolio** . Wide basket of 600 ANDAs & 66 NDAs filed and 512 ANDAS & 53 NDAS approved across multiple therapies Robust Pipeline** . • 88 ANDAS & 13 NDAs pending approval with USFDA Market Presence Flexible Manufacturing Dosage Forms **All data as of 31-Dec-2021 • Presence in branded, generics & OTC segments • Integrated manufacturer with flexibility for manufacturing onshore/ offshore • Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets, Capsules, Drug-Device combination * Source: IQVIA data for 12 months ended Dec 2021 ## Source: IQVIA data for 12 months ended Dec 2021 19#20FY11 23 23 35 US Business - Sales Sales in Rs. billion Tht FY12 FY13 ENE 62 42 TU FY14 98 FY15 FW55 FY16 137 FY17 10 year CAGR - 16% 135 138 FY18 87 FY19 107 105 101 FY20 720 FY21 20 SUN PHARMA#21Key Milestones in US FY22 • Launched Winlevi® (clascoterone cream 1%) for topical treatment of acne vulgaris SUN PHARMA FY21 FY20 FY19 FY18 FY17 FY13 FY10 FY98 • Presented long term clinical data for Ilumya & other clinical insights for Odomzo & Levulan at American Academy of Dermatology Conference • Presented Pre-clinical data for GL0034 (GLP-1R agonist) at American Diabetes Association Conference Launched Cequa in US • Launched Absorica LD in US in Feb-2020 • Launched Ilumya & Yonsa in US • Received USFDA approval for Cequa • Launched Xelpros in US • Launched Ready-to-Infuse INFUGEM™M • Launched Odomzo in US • US FDA approval for Ilumya . Tildrakizumab filing in US & Europe • Acquired Ocular Technologies giving access to Cequa, a product for dry eyes. • Acquired Odomzo- branded oncology product from Novartis • Acquired DUSA - Entry in branded specialty market . . Acquired Taro Pharma - Entry into US dermatology market • Entry in US through Caraco acquisition 21#22ANDA & NDA Pipeline ANDAS Filed and Approved (Cumulative) 595 600 584 561 571 581 512 501 483 453 427 422 FY17 FY18 FY19 SUN PHARMA NDA Filed and Approved (Cumulative) 41 42 39 36 FY20 FY21 Q3FY22 FY17 FY18 Cumulative Products Filed Cumulative Products Approved 59 52 42 FY19 64 66 50 60 55 55 53 FY20 FY21 Q3FY22 I Cumulative Products Filed Cumulative Products Approved (All data as of 31-Dec-2021) 22#23India Branded Generic Business 31% of Revenues SUN PHARMA 23#24India Business at a glance Market Position** No. 1 in India No. 1 ranked with 8.2% market share ** - Prescription Ranking## Chronic Segment Acute Segment ● Product Offering Strong Brand Positioning** De-risked Growth** Sales Strength -As per AIOCD AWACS data for 12 months ended Dec'21 ## As per SMSRC data for Oct'21 No. 1 ranked by prescriptions with 11 different classes of doctors Market leader in the chronic segment Strong positioning in the acute segment • Specializes in technically complex products and offers a complete therapy basket •29 brands in the country's top 300 pharmaceutical brands • Top 10 Brands contribute approx. 19% of India revenues - low product concentration • Growth driven by a basket of brands • • 10,963 strong field force SUN PHARMA 24#25Largest Pharma Company in India Market Share SUN PHARMA Formulation Sales in India as of 12 Months ended Dec 2021 (Rs. mn) 137,580 Sun Pharma 8.2% Abbott Abbott HC + Novo 6.2% Cipla 5.0% 104,140 83,460 73,510 Mankind 4.4% Zydus 3.9% Lupin 3.8% 65,660 62,750 58,640 Alkem Cachet + Indchemie 3.5% 52,660 Torrent 3.2% 51,920 Macleods 3.1% Intas 3.1% 51,360 50,200 Aristo 3.0% 49,920 Dr. Reddy 3.0% Source: AIOCD AWACS MAT Dec 2021 25#2624 29 29 FY11 TUC FY12 India Business - Sales ramp-up 10 year CAGR -16% Sales in Rs. Billion, One-time impact of change in 97 Impact of distribution Ranbaxy Acquisition 30 37 103 Therapeutic Revenue Break-up** Others Opthalmology 2% 4% Urology 3% Gynaecology, 4% Vitamins/ Minerals / Nutrients, 5% Cardiology 17% 80 77 73 71 Respiratory 5% 67 Dermatology, 6% Market Share 8.2% Neuro-Psychiatry 16% FY16 FY17 Pain / Analgesics 7% Diabetology 8% Gastroenterology 12% Anti-Infectives 11% ** As per AIOCD AWACS - Dec'21 26 SUN PHARMA#27Leadership in key therapeutic areas* Number 1 Ranking with 11 Doctor Categories* Prescription Ranking Specialist Oct '17 Oct '18 Oct '19 Oct '20 Oct '21 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Orthopaedic 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1 1 1 Dermatologists 1 1 1 1 1 Urologists 1 1 1 1 1 Consulting Physicians 1 2 1 1 1 ENT 2 2 2 2 1 Chest Physicians 2 3 2 Nephrologists 1 1 1 22 1 2 Ophthalmologists 1 1 2 2 2 *Ranks based on prescription share Source-Strategic Marketing Solutions and Research Centre (SMSRC) Prescription Data Creating Lasting Value - Investor Presentation SUN PHARMA 27#28Best-in-class field force productivity Sales Per Medical Representative (Rs. Mn) 9,291 9,291 9,550 9,707 10.0 8.8 8.6 8.3 FY17 FY18 FY19 SUN PHARMA 10,963 Impact of sales force expansion 9.4 Well trained and scientifically oriented sales representatives team with strong performance track record Field force with highest productivity amongst key players in India Expanded sales force strength in FY21 to enhance geographical & doctor reach and improve brand focus FY20 FY21 No. of Medical Representatives Sales Per Representative (Rs. Mn) 28#29Emerging Markets 18% of Revenues SUN PHARMA 29#30Emerging Markets Business at a glance Amongst the leading Indian Companies in Emerging Markets Global footprint . Presence in about 80 markets SUN PHARMA Focus Markets • Romania, Russia, South Africa, Brazil, Mexico and complementary & affiliated markets Product Portfolio Customer Focus • Sales Force • Opportunity Local Manufacturing •Extensive basket of branded products Strong relationships with doctors and medical practitioners Approximately 2,200 Sales Representatives Favourable macroeconomic parameters to drive pharmaceutical consumption in the long-term • Across 7 countries 30#31Rest of World (Western Europe, Canada, Japan, ANZ, Israel & Other Markets) SUN PHARMA 15% of Revenues 31#32Rest of World Markets at a glance Market Presence Product Portfolio Focus Sales Force Amongst the leading Indian Companies Local Manufacturing Japan Presence • Across all major markets in Western Europe, Canada, A&NZ, Japan, Israel and other markets Expanding basket of products including specialty brands, SUN PHARMA injectable & hospital products as well as products for retail market • Development and commercialization of complex generics and differentiated products to drive sustainable and profitable growth • • Distribution led model • Sales force for Specialty products . • At Canada, Japan, Australia, Israel and Hungary + supplies from India facilities • Acquired 14 established prescription brands from Novartis in March 2016 • Acquired Pola Pharma in Japan in Jan 2019 Canada Presence • Launched Ilumya in Japan in September 2020 • Portfolio of generics and specialty products • Specialty products - Launched Ilumya in October 2021 and Cequa in January 2022 32#33Global Consumer Healthcare Business SUN PHARMA 100 g CLOTRIMAZOLE DUSTING POWDER ABZORB ABSORBENT DUSTING POWDER NEW Pack ALL-ROUND NEW 360 ACTION ANTIFUNGAL ANTIBACTERIAL RANBAXY VOLİNİ REVITAL H Daily Health Supplement PEPMELT Whomins Minerals Glaving PEPFIZ AVIACO Natural Way To Healthy Heart & Digestion Garlic Pearls RANBAXY Garlic Pearls Natural Way to thy Heart & Digestion 30 GP EVITAL PROTEIN NXT POWER UP 10 Za 33#34Global Consumer Healthcare Business at a glance SUN PHARMA India Global Presence An Attractive Opportunity • Amongst the top 10 consumer healthcare companies Presence in about 20+ countries Focus Markets . • Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland, Thailand, Belarus, Kazakhstan, Morocco, UAE and Oman Strong Brand Equity •Enjoys strong brand equity in 4 countries Sales Force Strong Positioning . • Promoted through dedicated sales force in each market Amongst top 10 consumer healthcare companies in India, Romania, Nigeria & Myanmar 34#35Active Pharmaceutical Ingredients (API) Business 6% of Revenues SUN PHARMA 35#36API Business Backward Integration - Strategic Importance Strategic Importance Customers Backward integration provides cost competitiveness and supply reliability • Large generic and innovator companies Product Portfolio Approximately 370 APIS Pipeline Development Regulatory approvals Manufacturing • Approx. 20-30 APIs scaled up annually • 376 DMF/CEP approvals to date 485 DMF/CEP Filings to date • Across 14 facilities SUN PHARMA 36#37Research & Development SUN PHARMA 10 SAMSUNG 943 0000 37#38Research & Development Cumulative R&D Spend of ~Rs. 209 billion to date R&D Spend • . Capabilities Organization R&D spend at 6.5% of sales for FY21 Strong cash flows & large scale to support R&D investments Capabilities in finished dosage development, biological support, chemistry and new drug development • Approx. 2,700 headcount globally with capabilities across dosage forms like orals, liquids, ointments, gels, sprays, injectables IPR Support . Focus Strong team of intellectual property experts supporting R&D • Developing non infringing formulations and development of specialty/complex products SUN PHARMA 38#39R&D Investments R&D Investments Filings and Approvals SUN PHARMA 7.6% 8.6% 6.9% 6.1% 6.5% ANDA NDA/BLA DMF/CEP Patents* ** 23.1 600 66 22.5 21.5 19.8 19.8 512 99 2,129 485 53 376 1,386 FY17 FY18 FY19 FY20 FY21 Filed Approved Filed Approved Filed Approved Filed Granted R&D Investments (Rs Bn) R&D Investments (% of Sales) ** Excludes Expired/Abandoned Patents (All data as of 31-Dec-2021) 39#40Global Manufacturing Presence SUN PHARMA 40 40#41Global Manufacturing Presence World Class Manufacturing Infrastructure Extensive Global Footprint • 43 manufacturing facilities across India, the Americas, Asia, Africa, Australia and Europe Integrated Network Capabilities High Quality • Vertically integrated network across six continents enabling high quality, low cost and a quick market entry across the geographies • One of the few companies that has set up integrated manufacturing capability for the production of oncology, hormones, peptides and steroidal drugs High quality manufacturing facilities. Many facilities approved by US FDA, UK MHRA, EMEA and other international regulatory authorities Dosage Forms • Ability to manufacture a variety of dosage forms - Orals, Creams, Ointments, Injectables, Sprays, Liquids SUN PHARMA 41#42Manufacturing Facilities Formulation 43 manufacturing sites SUN PHARMA • . ΑΡΙ India 15, US: 3 Canada, Japan, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia: 1 each Capacities available for a variety of finished dosages India 9, Australia: 2, Israel: 1, US: 1, Hungary: 1 Injectables / Sterile Orals Tablets/Capsules Semisolids Topicals Vials Ampoules Dry powder Eye drops Creams Ointments Liquids Pre-filled Syringes MDI Suppository Gels Aerosols Lyophilized Units 42#43Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Chairman Israel Makov Former President & CEO of Teva Pharmaceuticals Industries Ltd. SUN PHARMA Independent Director Gautam B. Doshi Professional with expertise in M&A, Taxation, Accounting & Corp. and Commercial Laws. Independent Director Dr. Pawan Goenka Former MD & CEO of Mahindra & Mahindra Ltd. Independent Director Rama Bijapurkar Independent management consultant & Professor of Management Practice at IIM, Ahmedabad 43#44drcomstime Financials dreamstime G dreamstime dreamstime 44 SUN PHARMA Download more graphics at www.psdgraphics.com#45Financials Market Capitalisation Rs. 2,100 billion / US$ 29 billion (as of 17th March 2022) FY17 YOY FY18 ** YOY FY19 YOY FY20 YoY SUN PHARMA (All Figures in Rs. Mn) FY21 YoY P&L Summary Sales 302,642 Gross Profit 221,335 3% 9% 260,659 186,413 EBITDA 87,751 16% 51,846 Net Profit 69,644 53% 20,957 -14% 286,863 -16% 208,173 -41% 59,280 -70% 26,654 10% 323,252 12% 230,947 13% 332.331 3% 11% 245,430 6% 14% 64,774 9% 82,263 27% 27% 37,649 41% 29,038 -23% Net Profit (Adjusted) 69,644 33% 33,006# -53% 38,798 18% 40,256# 4% 59,317 # 47% R&D Spend 23,138 0% 22,489 -3% 19.847 -12% 19,739 -1% 21,499 9% BS Summary Mar'17 YOY Mar'18 YoY Mar'19 YOY Mar'20 Shareholders Funds 366,397 11% 383,141 5% 414,091 8% 452,645 Loan Funds 80,910 Net Fixed Assets 149,404 -3% 20% 157,110 97,518 21% 98,934 1% 75,783 YOY Mar'21 9% 464,628 -23% 33,430 YOY 3% -56% 5% 172,919 Investments 11.919 -35% 71,430 499% 79,030 10% 175,858 11% 101,431 2% 168,322 -4% 28% 96,125 -5% Cash and Bank Balances 151,408 15% 99,290 -34% 72,760 -27% 64,876 -11% 64,455 -1% Inventory 68,328 6% 68,810 1% 78,860 15% 78,750 0% 89,970 14% Sundry Debtors 72,026 6% 78,150 9% 88,840 14% 94,212 6% 90,614 -4% Sundry Creditors 43,954 23% 47,660 8% 41,480 -13% 35,836 -14% 39,737 11% # FY18 - Adjusted for Rs. 12.1 bn provision related to Modafinil settlement & deferred tax adjustment # FY19 - Adjusted for Rs. 12 bn provision related to Modafinil settlement **FY19 - Includes a one-time sales reduction of Rs. 10,850mn related to change in distribution for India business # FY20 - Adjusted for Rs. 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India) # FY21 - Adjusted for Rs. 30.3 bn provision (related to Taro US - DOJ & MDL settlement Rs. 42.2, Rs. 0.9 bn provision related to UK Citalopram case, Rs. 4.1 bn related to deferred tax gain. Taro provisions are adjusted for minority interest) 45#46Sales Break-up In Rs Billion Sales 303 261 287 323 332 16 21 品ǒ 20 49 49 26 18 45 15 35 45 30 55 58 54 48 88 105 101 138 87 107 103 97 77 80 73 FY17 FY18 FY19 FY20 FY21 India Formulations US Formulations Emerging Markets Rest of World API+Others ge SUN PHARMA 46#47EBITDA Trend In Rs Billion Sales 303 261 287 % of Sales 323 332 26.9% 28.0% 27.4% 28.6% 26.1% 16.2% 21.0% 20.8% 20.6% 19.7% 27.9% 28.5% 31.0% 31.1% 31.8% 29.0% 19.9% 20.7% 24.8% 20.0% FY17 FY18 FY19 FY20 FY21 EBITDA Other Expenditure Personnel Costs Material Costs SUN PHARMA 47#48Cash Flow & Debt Net Cash From Operating Activities (Rs. Bn) Free Cash Flow (Rs. Bn) 70.8 65.5 50.1 50.0 61.7 39.1 22.0 FY17 FY18 FY19 FY20 FY21 Gross Debt (Rs. Bn) 103.6 104.8 98.3 82.2 33.9 19.5 FY17 FY18 FY19 FY20 FY21 -10.2 Net Cash (Excluding Debt) (Rs. Bn) 57.7 45.0 37.7 34.7 69.5 103.0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 SUN PHARMA 48#49Financial Ratios FY17 FY18 FY19** FY20 SUN PHARMA FY21 Growth (%) Sales 8.5 (13.9) 10.1 12.7 2.8 Gross Profit 2.7 (15.8) 11.7 10.9 6.3 EBITDA 16.1 (40.9) 14.3 9.3 27.0 Net Profit 53.2 (69.9) 27.2 41.3 (22.9) Net Profit (Adjusted) 33.1 (52.6)# 17.5# 3.8# 47.4# Margins (%) Gross Margin 73.1 71.5 72.6 71.4 73.9 EBITDA Margin (%) 29.0 19.9 20.7 20.0 24.8 Net Margin 23.0 8.0 9.3 11.6 8.7 Net Margin (Adjusted) 23.0 12.7# 13.5# 12.5# 17.8# Return (%) ROCE 21.8 11.1 11.8 11.0 13.5 ROE 19.8 8.7 9.4 9.1 12.5 Others Debt/Equity Fully Diluted EPS 0.22 0.25 0.24 0.17 0.07 28.9 8.7 11.1 15.7 12.1 Fully Diluted EPS (Adjusted) 28.9 13.8# 16.# 16.8# 24.7# R&D Spend % of Net Sales 7.6 8.6 6.9 6.1 6.5 Revenue 7.1 7.9 6.6 6.0 6.4 Capital 0.6 0.7 0.3 0.1 0.1 # FY18 - Adjusted for Rs. 12.1 bn provision related to Modafinil settlement & deferred tax adjustment #FY19 - Adjusted for Rs. 12 bn provision related to Modafinil settlement **FY19 - Includes a one-time sales reduction of Rs. 10,850mn related to change in distribution for India business # FY20 - Adjusted for Rs. 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India) # FY21 - Adjusted for Rs. 30.3 bn provision (related to Taro US - DOJ & MDL settlement Rs. 42.2, Rs. 0.9 bn provision related to UK Citalopram case, Rs. 4.1 bn related to deferred tax gain. Taro provisions are adjusted for minority interest) 49#50Key Financials Q3 & 9m FY22 SUN PHARMA Q3 FY22 Q3 FY21 CHANGE 9m FY22 9m FY21 (All Figures in Rs. Mn) CHANGE Gross Sales 98,142 88,088 11.4% 290,403 247,693 17.2% Gross Profit 71,736 64,754 10.8% 212,284 183,200 15.9% Gross Margin 73.1% 73.5% 73.1% 74.0% EBITDA 25,574 23,782 7.5% 78,900 62,371 26.5% EBITDA Margin 26.1% 27.0% 27.2% 25.2% Net Profit 20,588 18,524.8 11.1% 55,500 20,097 176.2% Net margin 21.0% 21.0% 19.1% 8.1% Net Profit (Adjusted) 20,588 18,524.8 11.1% 60,851 45,887 # 32.6% Net margin (Adjusted) 21.0% 21.0% 21.0% 18.5% R&D 5,471 5,595 -2.2% 16,761 15,928 5.2% R&D as % of Net Sales 5.6% 6.4% 5.8% 6.4% EPS (Diluted) INR 8.6 7.7 11.1% 23.1 8.4 176.2% EPS (Diluted) INR (Adjusted) 8.6 7.7 11.1% 25.4# # 19.1" 32.6% # 9m FY22 - Adjusted for Rs. 5.3 bn provision (related to (i) US MDL (Taro) = Rs. 4,425 mn (ii) write down of a manufacturing facility=Rs. 382 mn (iii) Dexasite impairment = Rs. 1,503 mn. Taro provisions are adjusted for minority interest) # 9m FY21 - Adjusted for Rs. 28 bn provision (related to US DOJ (Taro) = Rs. 36,333 mn.) & adjusted for Rs. 2.2 bn provision (related to deferred tax gain (Taro) = Rs. 2,883 mn.) Taro provisions are adjusted for minority interest. 50#51Sales Breakup Q3 & 9m FY22 SUN PHARMA (All Figures in Rs. Mn) Q3 FY22 Q3 FY21 CHANGE 9m FY22 9m FY21 CHANGE Formulation India 31,676 27,528 15.1% 96,637 76,724 26.0% US 29,718 27,629 7.6% 84,491 73,933 14.3% Emerging Markets 17,899 15,073 18.8% 51,957 43,825 18.6% ROW# 13,532 12,991 4.2% 41,138 36,788 11.8% Sub-total 92,824 83,220 11.5% 274,223 231,269 18.6% ΑΡΙ 4,710 4,505 4.6% 14,218 15,147 -6.1% Others 608 363 67.4% 1,963 1,278 53.6% Gross Sales 98,142 88,088 11.4% 290,403 247,693 17.2% US Formulations India Branded Generics Emerging Markets Rest of World API & Others 18% 31% 17% 32% Q3 Q3 FY22 14% FY21 15% 6% 6% 30% 31% # Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets 51#52Key Milestones targeted for future US Business · Enhance share of specialty/branded business ● • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms SUN PHARMA • Focus on productivity enhancement • Maintain leadership position in a fiercely competitive market Continuously innovate to ensure high brand equity with doctors • Continue to evaluate in-licensing opportunities for latest generation patented products India Business • • Gain critical mass in key markets •Enhance product basket in emerging markets • Focus on profitable growth . EM & ROW Business • Maintain leadership in existing markets through focus on innovative solutions • Enhance presence in high growth markets Global Consumer Healthcare . 52 42#53Key Milestones targeted for future Sustainability R&D Regulatory/ Quality SUN PHARMA • Unwavering focus on Sustainability, built on a legacy rooted in caring for people, communities and the planet. • Committed to Governance, Community Upliftment, Access to Affordable Healthcare & Environment Conservation • Focus on developing complex products across multiple dosage forms • Invest to further build the specialty pipeline • • Ensuring 24x7 compliance to cGMP Continuously enhance systems, processes, human capabilities to ensure compliance with global regulatory standards • Target sustainable and profitable growth . Financial • Focus on improving overall return ratios 53#54Sun Pharma at a glance US India 4th Largest Global Specialty Generic Company* Emerging Markets Rest of World Manufacturing Footprint Market Presence Employees Quality Compliance R&D and Manufacturing Addressable Segments . • • Ranked 9th in US Generics Market## No. 1 Pharma Company in India Amongst the largest Indian Pharma Company in Emerging Markets Expanding presence in Rest of World .43 manufacturing sites across the world Presence in more than 100 countries across branded and generic markets • 37,000+ global employee base • • Multiple manufacturing facilities approved by various regulatory authorities across the world including USFDA ⚫ Capabilities across dosage forms like injectables, sprays, ointments, creams, liquids, tablets and capsules • Specialty products, branded generics, complex generics, pure generics & APIS SUN PHARMA *Source: Evaluate Pharma Estimates for 12 months ended Dec 2020 ## Source: IQVIA data for 12 months ended Dec 2021 54#55SUN PHARMA Thank You! For more information please contact: Investors: Nimish Desai Tel: +91 22 4324 4324, Ext 2778 Tel Direct +91 22 4324 2778 [email protected] Corporate Address: SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Industries Limited., All Rights Reserved. "SUN Pharma", The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners. NSE:SUNPHARMA, BSE: 524715, Reuters: SUN.BO, Bloomberg: SUNP IN CIN: L24230GJ1993PLC019050 www.sunpharma.com 55