#1O N- N OH HO Gujarat Themis Biosyn Limited Investor Presentation September 2021 HO GTB#2Disclaimer GB This presentation has been prepared by Gujarat Themis Biosyn Limited (the “Company” or “GTBL") solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward- looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2#3Table of Contents N Business Overview Company Overview 2 Industry Overview Financial Highlights ២ 0 Way Ahead GB 3#4HO N ZH Company Overview NH#5Among India's few Fermentation based Intermediate manufacturers 01 04 GTBL among one of India's few fermentation based manufacturers in pharmaceutical field Incorporated in 1981 as joint sector Company with GIIC Ltd. and Chemosyn (P) Ltd. ■ India's First Company to start commercial production of Antituberculosis drug Rifampicin Product Portfolio - strong and growing Rifamycins Treatment of - Tuberculosis and digestive tract infections ■ First to start commercial production of Rifampicin using Fermentation process Focus on Research and Development ■Company is establishing state of art R&D facilities ■ Focus now is to develop new products in line with business strategy 10 80 03 02 05 55 06 90 GB State of Art Manufacturing Facility ■ Plant in Vapi (Gujarat) ■ Over 200 Employees engaged at plant site Strong Collaborations ■TML has been open to Technical and commercial collaborations so that GTBL can adopt best technologies and best processes Strong Financial Performance ■ 107% YoY growth in Revenues ■ Conservative Balance sheet: Net Debt to Equity ratio - 0.06 in FY21 ■ Virtually debt free 5#6Journey So Far ■ Established as joint sector Company with Govt of Gujarat for fermentation business for manufacture of Erythromycin ■ Entered into JV agreement with PBG Ltd & Yuhan Corporation, South Korea to manufacture Rifampicin ■ BIFR declared GTBL as sick Company ■ Dr. Dinesh Patel stepped in as Guarantor and Adviser ■ Themis Medicare Ltd entered as promoter brought in technical and managerial and unique fermentation expertise Repaid total working capital loan ■ Deregistration complete since the SICA, 1985 has been repealed ■ Production continues despite COVID-19 pandemic 1981 1984 1991 2003 ■ Listed on Bombay ■ Started manufacture Stock Exchange of Lovastatin 2007-2009 2011-2015 2017-18 2019 2020 GB 2021 ■ Started manufacture of Rifamycin S an intermediate for Rifampicin, running at full installed capacity ■ Rehabilitation scheme approved by BIFR ■ Net worth becomes positive Changed its business model from Contract Manufacture to Manufacture and sales Model ■ Started sale of Rifamycin O from September ■ Mutually strategic decision to end technological partnership with Yuhan Group- currently in progress 6 much earlier than envisaged#7Expert and Experienced Management Team Dr. Dinesh Patel Chairman ■Doctorate in Medicinal Chemistry ■ Member of Royal Society of Chemistry, London, U.K. ■ Industrialist having working experience in the Pharma Industry since 1973 ■ Expertise in Pharmaceutical research, Biotechnology, Fermentation technology, Banking and Business management Dr. Sachin Patel Director ■ Doctorate in Biological chemistry from Christ's College, University of Cambridge, UK. ■ Industrialist having working experience in the Pharma Industry since 2000 Mr. Jagdish Kaujalgi Chief Executive Officer Mr. Rajneesh Anand Part of Themis Group GB ■ Diploma Mechanical Engineer with experience of more than 30 years in chemical industry ■ Working with GTBL since Feb-2017 ■ Associated with Themis Group in various senior capacities ■ Notable Contribution to GTBL from his vast technical and managerial experience ■ Professional having working experiences with Themis since 1977 7#8Key Strengths Strong Product Portfolio ■ Demand side remains strong for product manufactured by GTBL ■ More than decade old products with no replacement for these ■ Continued to be most accepted and preferred products with growing demand Right mix of Strong Order Book with Buy and Sell model Secure, long-term contracts to ensure steady order book along with right mix of Buy & Sell orders leading to optimal profitability 02 22 04 50 Available land for expansion Company's plans for growth can proceed unhindered as existing land under ownership is available for capacity expansion initiatives 06 03 05 95 01 GB Investments in R&D ☐ New, state-of-the-art R&D centre under construction for new product development Niche in fermentation-based production ☐ One of the very few players in India with technology and capacity/scale for fermentation-based product development Debt Free Company ■ Conservative Balance sheet - Net Debt to Equity ratio - 0.06 in FY21 Virtually debt free 8#9Business Overview#100 Strong & Niche Product Portfolio - Growing at pace Rifamycin S Current Product Portfolio GB ■ An intermediate for manufacturing drug Rifampicin (Anti biotic used for treatment of several types of bacterial infections, including tuberculosis, Mycobacterium avium complex, leprosy, and Legionnaires' disease) ◉ Capacity of Rifamycin S is 10,000 Kgs/Month An intermediate for manufacturing drug Rifaximin (Antibiotic used for treatment of traveler's diarrhea, irritable bowel syndrome, and hepatic encephalopathy) Capacity of Rifamycin O is 6,000 Kgs/Month Rifamycin ◉ ☐ ☐ Identified and working developing four New Products and adding to portfolio Developing them all by self All specialised products and add huge value to portfolio Demand side remains pretty strong for products manufactured by GTBL -more than decade old products - no replacement for these - continue to be most accepted and preferred prodcust with growing demand 10#11Advantages of using the Unique Fermentation Process Fermentation Lab Fermentation Process Broth Filtration Solid / Liquid Separation GB GTBL and Fermentation Technology - Strive to develop new fermentation culture: ☐ Primary Fermenter Oxidation Drying ☐ Secondary Fermenter Hydrolysis Powder Processing Fermentation is the core competency of Company GTBL became India's first Company to start commercial production of Rifampicin used as Anti-tuberculosis drug using Fermentation process Has evolved into an integrated biopharmaceutical Company that also includes a contract development and manufacturing business of intermediates based on fermentation technology Main Fermenter Crystallizer Packaging " Advantages of Fermentation Process in Drug Manufacturing Developing new and efficient processes - Going down synthetic route not only requires significant development but is time consuming and entails higher costs than fermentation option Further advancement in developing fermentation technology - Semi-synthetic approach draws upon advantages of fermentation in generation of new drugs. Natural molecules are produced through fermentation then modified synthetically, reducing toxicity, increasing potency and selectivity, and overcoming bacterial resistance to traditional antibiotics 11#12State of Art Manufacturing Facilities at Vapi A FERMENTATION DEPARTMENT Among very few companies in India with fermentation capabilities Environment Friendly & Sustainable Process Using Aerobic Bacteria for Fermentation GB 12#13IN CI Buti Industry Overview H₂C-C=CH-CH₂ Br CH HC-HC-COU H&C-HC-C CH₁₂ TSCH 1130 Me Me CH-CH Me C₂H 13 CH3 CH3#140 Pharmaceutical Market- An Overview Domestic Market Global Market 63 03 01 Active Pharmaceutical Ingredient Market valued at USD 172.69 Billion in 2018 and expected to reach USD 263.80 Billion by 2025 with CAGR of 6.24% over forecast period U.S. holds 45% global market share for pharmaceutical companies including new drug discovery using Active Pharmaceutical Ingredient 02 92 04 North America-expected to dominate Active Pharmaceutical Ingredient market GB Spending increased from USD 461.7 bn in 2016 to USD 645-675 bn in 2021, while European share of pharmaceutical drug development spending to grow from USD 151.8 bn to USD 170-200 bn from 2016 to 2021 Leading Pharma Producer- ■ Indian pharmaceutical industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK1 Amongst leading exporters- ■ India accounts for 20 per cent of global exports in generics ■ India's pharmaceutical exports stood at US$ 13.69 billion in FY20 (up to January 2020) Source: Among fastest growing industries- ■ Indian pharma sector is expected to grow at CAGR of 22.4% & medical device market at US$ 25 bn by 2025 India is second largest contributor of global biotech and pharmaceutical workforce Pharmaceutical sector was valued at US$ 33 billion in 2017 Rapidly growing healthcare sector- Indian healthcare sector, one of fastest growing sectors, expected to cross US$ 372 billion by 2022 https://www.kake.com/story/41940056/microbial-fermentation-apis-market-share-size-2020-to-2024-executive-summary-market-overview-and-top-company-profiles-says-market-reports-world https://www.medgadget.com/2020/04/active-pharmaceutical-ingredient-market-size-2019-global-api-market-analysis-and-opportunities-by-forecast-to-2025.html https://www.globenewswire.com/news-release/2020/01/17/1972092/0/en/Global-Pharmaceuticals-Industry-Analysis-and-Trends-2023.html 14#150 The Indian Pharma Advantage 01 Cost Efficiency GB ■ Low cost of production & R&D boosts efficiency of Indian pharma companies, leading to competitive exports ■ India's cost of production is approximately 33 per cent lower than that of the US ■ India's ability to manufacture high-quality, low-priced medicines, leads to huge business opportunity Increasing Investments 02 ▪ Increasing private sector investments in R&D and acquisitions are driving sector's growth ■ Between 2008-19, S&P BSE Healthcare Index has grown at 16.72% 03 ■ Economic prosperity to improve drug affordability Economic Drivers ■ Increasing penetration of health insurance to drive expenditure on medicine ■ With increasing penetration of pharmacies, especially in rural India, OTC drugs will be readily available 04 ■ Pharma Vision 2020' aimed at making India global leader in end-to-end drug manufacturing Policy Support ■ Under Budget 2020-21, allocation to Ministry of Health and Family Welfare is Rs 65,012 Cr (US$ 9.30 billion) ■ In this sector, 100 per cent FDI allowed under automatic route Indian pharmaceutical sector expected to cross to US$ 372 billion In February 2020, Indian pharmaceutical sales grew by 12.1 % year-on-year Source: https://www.ibef.org/industry/pharmaceutical-india.aspx https://www.ibef.org/download/Pharmaceuticals-May-2020.pdf Annual Turnover of Indian Pharmaceutical Market (US$ billion) 20.03 17.87 18.12 16.41 2016 2017 2018 2019 15#16100 75 50 Bobrok.vol. Q1 FY22 Financial Highlights#170 Q1 FY22 Financial Highlights EBITDA (Rs. Cr) / Margin (%) Revenue (Rs. Cr) 26.35 15.66 32.44 27.20 24.40 23.30 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 PAT (Rs. Cr) / Margin (%) 20 54.21% 50.18% 18 42.08% 43.81% 16 14 35.64% 12 10 8 13.22 6 4 10.69 8.30 6.59 2 0 60% 51.55% 41.54% 14 35.58% 41.72% 50% 12 40% 10 30% 8 16.72 6 20% 10.95 4 10% 5.57 2 0% 0 In m 14.74 39.84% 45% 40% 30.62% 35% 24.85% 30% 25% 12.92 20% 11.35 7.47 5.79 15% 10% 5% 0% Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 GB 17#180 Q1 FY22 Financial Highlights GB Rs. Crs Q1 FY22 Q1 FY21 YOY% Q4 FY21 Income from Operations 32.44 15.66 23.30 Other Operating Income 0.00 0.00 0.00 Total Income from Operations I 32.44 15.66 107.12% 23.30 Cost of Materials Consumed 5.87 4.74 0.82 Changes In Inventory 0.33 -4.56 8.42 Employee Cost 1.68 1.68 1.74 ■ Revenue growth driven by change in business model ■ Demand for the products Other Cost 7.83 7.21 4.01 Total Expenditure I 15.72 9.07 15.00 stayed consistent strong and EBITDA 16.72 6.59 153.73% 8.30 EBITDA Margin % 51.55% 42.08% 947 bps 35.64% Other Income I 1.13 0.86 0.80 ■ Raw Depreciation 0.54 0.34 0.67 Interest I 0.20 0.23 0.29 material prices impacted due to shift in business model wherein Profit Before Tax 17.12 6.88 8.14 material are procured Tax 4.20 1.31 2.34 Profit After Tax 12.92 5.57 131.91% directly by Company now 5.79 PAT Margin % 39.84% 35.58% 426 bps 24.85% EPS in Rs. ' 8.89 3.84 131.51% 3.99 18#19CH Annual Financial Highlights#200 Financial Highlights - FY21 vs FY20 GB 26.67% 713 bps EBITDA Margin 44.53% 6.39% Revenue from Operations Rs. 90.56 Crore EBITDA Rs. 40.33 Crore 1 PAT 27.48% Rs. 30.18 Crore PAT Margin 33.32% 551 bps Basic EPS 27.42% Rs. 20.77 vs. Rs 16.30 FY20 20 20#21Annual Financial Highlights - FY21 EBITDA (Rs. Cr) / Margin (%) Revenue (Rs. Cr) 38.80 41.05 35.69 90.56 85.12 FY17 FY18 FY19 FY20 FY21 PAT (Rs. Cr) / Margin (%) 52525250 45 40 35 30 44.5% 50% 37.4% 33.3% 45% 35 27.8% 35% 40% 30 30% 35% 30.2 25 25% 30% 15.6% 17.9% 16.1% 25% 20 23.7 20% 17.0% 40.3 20% 12.2% 15 10.1% 15 31.8 15% 15% 10 10% 10 10% 5 5% 6.1 6.2 7.3 5% 4.4 6.4 0% 0 3.9 0% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 GB 21#220 Key Ratios ROCE(%)* 42.77% 41.40% 33.94% 70.91% 59.9% ROA (%)** 20.4% 18.9% 19.6% 37.0% 34.2% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 ***ROE = Net Profit/Net Worth RoE(%) *** 53.3% 34.6% 32.2% 56.1% 43.2% FY17 FY18 FY19 FY20 **ROA = Net Profit/Average Total Assets/ *ROCE = EBIT/(Shareholders Fund + Total Debt-non current investments) GB FY21 22#23Annual Financial Highlights - FY21 GB Rs. Crs FY21 FY20 YOY% Income from Operations 90.56 85.12 Other Operating Income 0.00 0.00 ■ Growth in revenue on Total Income from Operations 90.56 85.12 6.39% Cost of Materials Consumed 15.75 15.44 Changes In Inventory business (0.38) (4.11) Employee Cost 7.11 6.43 Other Cost 27.75 35.52 Total Expenditure 50.23 53.28 EBITDA 40.33 31.84 26.67% EBITDA Margin % 44.53% 37.40% 713 bps Other Income 3.27 1.70 Depreciation 1.73 1.36 Interest 0.98 0.92 Profit Before Tax 40.88 31.26 30.79% Tax 10.70 7.58 Profit After Tax 30.18 23.67 PAT Margin % 33.32% 27.81% 27.48% 551 bps account of change in Company from Contract. Manufacturing to Buy and Sell model ■ Consistent strong demand offsets adverse impact of lockdown Increase in product prices, in line with market trends, benefitted EBITDA margins model of EPS in Rs. 20.77 16.30 27.42% 23#24Balance Sheet Highlights - As on 31st March 2021 GB Rs. Cr. Rs. Cr. FY20 FY21 FY20 FY21 Total Equity & Liabilities Total Assets Shareholders Funds 42.20 69.95 Non Current Assets 34.94 24.94 Share Capital 7.26 7.26 Property Plant & Equipment 17.08 16.99 R&S 34.93 62.68 Capital work in progress 0.36 2.07 Non Current Liabilities 4.54 2.49 Right of use Assets 0.00 1.96 Financial Liabilities Financial Assets Borrowings 3.18 0.00 Lease Liabilities Others 15.10 1.30 0.00 1.00 Provisions 0.49 0.51 Other Non Current Assets 2.40 2.62 Deferred Tax Liabilities (Net) 0.86 0.98 Current Assets 29.14 63.32 Current Liabilities 17.34 15.82 Inventories 6.03 6.05 Financial Liabilities Financial assets Short term borrowing 0.00 0.00 Investments 0.01 0.00 Lease Liabilities 0.00 0.80 Trade receivables 20.23 14.71 Trade Payable Cash & Cash equivalents 0.86 3.97 Due to Micro Small & Medium Enterprises 0.09 0.01 Other Trade Payables 7.36 3.53 1.22 23.66 Bank balance other than above other financial liabilities 8.85 9.32 Short Term Loans 0.02 0.02 Provisions 0.05 0.20 Other Current Liablities 0.31 0.75 Other financial assets 0.49 14.61 Current Tax Liability (Net) 0.69 1.22 Other Current Assets 0.28 0.29 Total Equity & Liabilities 64.08 88.26 Total Assets 64.08 88.26 24#25Way Ahead#26Our Way Ahead GB New Product Development & Forward Integration New Infrastructure Development In process of identifying new products which have good domestic and export potential Company working on strategy to move up the value chain by way of forward integration into API ◉ New infrastructure being planned would be compliant with strictest regulatory authorities ■ Focusing on enhancing capacities - requisite Environmental Clearance already obtained Focus on Establishing R&D Centre ◉ In process of establishing new R&D lab to take care of technology development for new products and for examining whether existing products can be used for more applications Geographical Diversification ☐ ◉ Further expanding in geographically strategic locations in India Targeting at export opportunities Enhance Capacity to meet future growth Requisite Environmental Clearance already obtained for capacity expansion at current location Open to both Organic and Inorganic opportunities for growth in Specialty Chemical space 26#27Thank You N For further information, please contact: GB Company: Gujarat Themis Biosyn Limited Investor Relations Advisors: Bridge Investor Relations Pvt. Ltd. Mr. Sangameshwar lyer [email protected] www.gtbl.in Mr. Amit Sharma - 9867726686 Mr. Rahul Trivedi - 9833541841 [email protected] [email protected] www.bridge-ir.com 27