#1GLAND GLAND PHARMA LIMITED Gland Pharma Limited Financial Results Q1'FY22 21st July 2021 Gemcitabl Injection Gemcitabi Injection Gemcitab Injection#2Safe Harbor Statement 2 The Presentation is to provide the general background information about the Company's activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. This presentation may include certain "forward looking statements". These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India and any other country, ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global pharmaceuticals industries, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its directors and any of the affiliates or employee have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without prior written approval from Gland Pharma Limited. GLAND#33 Financial Highlights (1/3) Sustained business performance despite operational challenges Revenue from Operations (INR Mn) 31% 11,539 8,842 8,877 30% 11,539 EBITDA (1) / EBITDA Margin (2) (INR Mn / %) 12% 33% 4,981 4,981 4,447 3,749 49% 41% 41% 40% Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 PBT/PAT / PAT Margin (3) (INR Mn / %) 12% 35% R&D Expenses / R&D (% of Revenue) (INR Mn / %) 4,718 4,718 4,200 3,489 3,507 3,136 3,507 2,604 74% 438 304 44% 438 29% 252 34% 29% 28% 2.9% 3.8% 3.4% 3.8% Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Profit Before Tax Profit After Tax Note: (1) EBITDA stands for earnings before interest, taxes, depreciation and amortisation which has been arrived at by adding finance expense, depreciation expense and total tax expense to the profit for the period. (2) EBITDA margin = EBITDA / Total Income; (3) PAT margin = Profit for the period / Total Income GLAND#4Financial Highlights (2/3) Balance sheet continues to remain strong while CapEx remains in line with growth plans Net Worth (1) (INR Mn) 62,897 59,032 12,250 12,250 46,782 50,647 Mar'21 Jun'21 ■Networth ■Fresh issue of equity Net Working Capital (3) (INR Mn) 16,054 Mar'21 Cash and Bank Balances / Net Cash (2) (INR Mn) 30,058 30,017 30,574 30,533 Mar'21 Jun'21 Total Cash ■Net Cash Capital Expenditure (INR Mn) 17,621 Jun'21 555 Q1 FY21 1,857 Q1 FY22 4 Note: (1) Net Worth refers to sum of equity share capital and other equity. (2) Net Cash refers to Cash and Bank Balances less Non-current borrowings (including current maturities). (3) Net Working Capital refers to Current assets (excluding cash and bank balances) less Current liabilities. GLAND#5Financial Highlights (3/3) Asset Turnover Ratio (1)(2) Focus on Capital efficiency and healthy return ratios ROCE (ex-cash) (3) / ROCE (4) / RONW (5) (%) 0.8 0.7 0.7 3.6 3.1 2.8 49% 32% Ж 33% (8) Total asset turnover Fixed asset turnover Q1 FY21 Q1 FY21 ■FY21 ■ Q1 FY22 Cash Flow from Operations (INR Mn) 2,931 Q1 FY21 *ROCE (Ex-Cash) 42% 35% * * 23% 21% 23% 21% (8) FY21 Q1 FY22 ROCE RONW Cash Conversion Cycle (CCC) (6)(7) (# of Days) 1,813 65 67 64 Q1 FY22 178 184 276 Receivable days Inventory days 234 192 170 106 73 59 Payable days Cash conversion cycle Q1 FY21 ■FY21 Q1 FY22 5 Note: (1) Asset Turnover is calculated as Total Income for the period divided by average total assets for the period; (2) Fixed Asset Turnover is calculated as Total Income for the period divided by average total fixed assets for the period (Property, plant and equipment + Right-of-use assets + Capital work in progress); (3) ROCE (ex cash) = (EBIT - Taxes- Interest Income (net of taxes)) / Average Capital Employed for the period. Capital Employed represents Total Assets (excluding Cash and Bank balances) - Current Liabilities (4) Return on Capital Employed (ROCE) = (EBIT - Taxes)/ Average Capital Employed for the period. Capital Employed represents Total Assets - Current Liabilities; (5) Return on Net Worth (RONW) = Profit for the period / Average Net Worth for the period. Net Worth represents sum of equity share capital and other equity; (6) COGS mean cost of goods sold includes cost of materials consumed, purchases of traded goods, change in inventories of finished goods, traded goods and work-in-progress and manufacturing overheads; (7) Receivable days calculated as average trade receivables for the period divided by revenue from operations * over 90/360 days (as applicable), Inventory days calculated as average inventory for the period divided by COGS* over 90/360 days (as applicable), & Payable days calculated as average trade payable for the period divided by COGS* over 90/360 days (as applicable). CCC calculated as Receivable days + Inventory days - Payable days; (8) Annualised GLAND#6P&L Highlights (INR Mn) YOY QoQ Particulars Q1 FY22 Q1 FY21 Q1 FY22 Q4 FY21 FY21 growth growth Revenue From operations 11,539 8,842 31% 11,539 8,877 30% 34,629 Other Income 618 321 93% 618 473 31% 1,348 Total income 12,157 9,163 33% 12,157 9,350 30% 35,977 Gross Margin (1) 6,174 5,643 9% 6,174 4,962 24% 19,710 % margin 54% 64% 54% 56% 57% EBITDA (2) 4,981 4,447 12% 4,981 3,749 33% 14,370 % margin (3) 41% 49% 41% 40% 40% PBT 4,718 4,200 12% 4,718 3,489 35% 13,348 % margin 39% 46% 39% 37% 37% PAT 3,507 3,136 12% 3,507 2,604 35% 9,970 % margin 29% 34% 29% 28% 28% 6 Note: (1) Gross Margin = Revenue from Operations - Materials consumed; (2) EBITDA stands for earnings before interest, taxes, depreciation and amortisation which has been arrived at by adding finance expense, depreciation expense and total tax expense to the profit for the period; (3) EBITDA margin = EBITDA / Total Income GLAND#7USA, Europe, Canada and Australia (Core Markets) ☐ Revenue: We delivered a strong performance with growth in existing products including Micafungin, Enoxaparin, Heparin, Dexmedetomidine among and among others new prod- uct launches. It was also an important milestone to launch our first set of penem products for the US market. ■ New launches(2); Q1 FY21: 17 Product SKUS (12 molecules) US filings update: As of June 30, 2021, we along with our partners had 286 ANDA filings in the United States, of which 239 were approved and 47 pending approval. ANDA Filed ANDA Approved DMFS Filed Q1 FY22 2 6(3) LO 6% USA Q1 FY22: Rs. 7,042 Mn YoY Growth: 16% Core Markets (1) Revenue Contribution Q1 FY21 63% 7% Q1 FY22 54% 7 Note: ANDA count includes technology transfer ANDAS Europe, Canada and Australia (1) Core markets includes USA, Europe, Canada and Australia (2) Includes products where launch quantity is dispatched to our partners (3) Received final approval for one product which was earlier tentatively approved GLAND#8Rest of the World Markets 8 Strong momentum during the first quarter in line with our focus on increased contribution from Rest of the world markets sales as was observed in FY21 Q1 FY22: Rs. 2,227 Mn YoY Growth: 51% ■This has been driven by new partnerships and increased penetration geographically ■ We also initiated registration of new products such as Ertapenem in the LatAm region Rest of the World Markets Our existing portfolio is seeing strong demand from new partnerships entered in to during the year, on account of our ability to respond to the changing market demand during COVID-19 Q1 FY21 Revenue Contribution 17% Q1 FY22 19% GLAND#9India (Domestic Market) 9 ■ Domestic market sales received strong demand during the quarter accounting to 77% y-o-y growth ■ The new capacities being made available for the domestic market has helped ramp up volume growth in the core portfolio of products Q1 FY22: Rs. 2,270 Mn YoY Growth: 77% India (Domestic Market) To support the domestic market during the second wave of COVID-19, we ramped up supply of essential drugs like Remdesivir and Enoxaparin considering the requirement for Indian patients ■ New launches: Q1 FY22: 1 Product SKU Q1 FY21 Revenue Contribution 15% Q1 FY22 20% GLAND#10Near Term Focus Areas Focus on achieving a diverse product mix offering products at various stages of their lifecycle as well as a robust product pipeline Commercialization of fill-finish vaccine manufacturing capacity and capability building on vaccine drug substance manufacturing. We also look to continuing investments towards creating robust infrastructure for the vaccine and bio-similar space 10 10 Expanding development and manufacturing capabilities in new delivery systems such as pens and cartridges Expanding development and manufacturing capabilities in complex injectables such as peptides, long-acting injectables, suspensions and hormonal products Geographic expansion in to emerging markets to diversify revenue base while maintaining healthy profitability GLAND#11Responding to COVID-19 ✓ To ensure health and safety of employees and their family, vaccination drives were conducted at corporate office and manufacturing facilities ✓ We put in adequate safeguards by taking precautionary measures; social distancing, workplace fumigation and sanitization across all plants 11 Gland-Fosun Foundation in collaboration with Breas Medical, a member of Fosun Pharma group, GLAND A FOSUN PHARMA Company FOSUN PHARMA FOSUN BREAS FOR STAY STRONG INDIA! helped addressing the shortage of 加油印度 ventilators during the 2nd wave of the COVID-19 pandemic Distributed nearly 150 Breas ventilators to various government / charitable hospitals in Telangana districts, as well as contributed towards critically needed multi-channel monitors, HDF, ultrasound and ECG machines to Hospitals in Hyderabad VANS Vivo vivo viva Vivo ViVO STRY STRONG NOS 油印度 加油 Vivo VO VO Viv MEDICO JOINT REPLA FOSUN BREAS Taken for COVIO-13 Pants BOUNCE BACK TO YOUR ACTIVE LIFE Greater precision, faster recovery with ROBO 3.0 New advanced Robotic assisted Joint Replacement Surgery 10 vivo Breas Medical Team, Gothenburg Sweden Government Hospital, Rajanna-Sircilla District, Medicover Hospital, Hyderabad Telangana GLAND#12Registered Office Gland Pharma Limited Survey No. 143-148, 150 & 151 Near Gandimaisamma 'X' Roads D.P. Pally, Dundigal Gandimaisamma Mandal Medchal-Malkajgiri District Hyderabad 500043, Telangana, India GLAND Corporate Office: Gland Pharma Limited Plot No. 11 & 84, TSIIC Phase: IV Pashamylaram (V), Patancheru (M), Sangareddy District Hyderabad 502307, Telangana, India BSE 543245 ONSE GLAND Bloomberg GLAND:IN