#1376.1 359.6 463 987.3 2356 3612 538,46 465.35 7831 45.02 675.8 125 799 1299.7 951.07 154 789 12.69 65723 452.3 763.2 684.3 2358 32.5 684,1 125.25 456.22 153.8 235 12.39 3695 23.36 3612.19 763.33 752.36 32.35 26.9 215 421,22 125.08 14.22 0,05 9512 33.2 561.2 346.2 45692.33 0,09 489.56 1.75 34,4 789 65.01 123.25 7534 333.44 NOTA-2 NALE NO CI FUNDUSZU Dr. Reddy's Laboratories Limited Hyderabad, India BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY 1.Ztytutu yych o 2.2 tytułu instrumentbw poche Mulu dywid Investor Presentation June 2023 Dr. Reddy's PROPRIETARY#2Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact, including, but not limited to, those that are identified by the use of words such as "anticipates", "believes”, “estimates”, "expects", "intends", "plans”, “predicts", "projects" and similar expressions. Risks and uncertainties that could affect us include, without limitation: General economic and business conditions in India and other key global markets in which we operate; The ability to successfully implement our strategy, our research and development efforts, growth & expansion plans and technological changes; . Changes in the value of the Rupee and other currency changes; • Changes in the Indian and international interest rates; • Allocations of funds by the Governments in our key global markets; • • • Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry; Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and Changes in political conditions in India and in our key global markets. Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes may vary materially from those indicated in the applicable forward-looking statements. For more detailed information on the risks and uncertainties associated with the Company's business activities, please see the company's annual report filed in Form 20-F with the US SEC for the fiscal year ended March 31, 2023, quarterly financial statements filed in Form 6-K with the US SEC for the quarters ended June 30, 2022, September 30, 2022, December 31, 2022, and our other filings with US SEC. Any forward-looking statement or information contained in this presentation speaks only as of the date of the statement. We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the statement or information is made or to account for unanticipated events. All financial numbers in this presentation are as per IFRS consolidated financial statements 2#3Our purpose guides and energizes us on our journey Our credo translates into three pillars Good Health Can't Wait. Access To serve as many patients as possible across the world Affordability operational excellence and productivity to deliver care affordably to patients Patient-centric Innovation Focused innovation to identify and address unmet needs of patients ©copyright Dr. Reddy's Ltd. 3#4Dr. Reddy's is uniquely positioned to create sustained Shareholder Value Strong & Established Core businesses (API, GX, OTC, Biosimilars) Diversified presence across markets (US, Europe, India, Russia, China, Brazil & other EM) Future growth opportunities (NCES, CDMO, Nutra, others) Digitalization focus across marketing, R&D and manufacturing operations Emphasis on productivity and efficient resource utilization Compliance driven, Strong focus on Quality High ESG focus with proactive initiatives Strong Balance Sheet to support organic and inorganic moves $ ©copyright Dr. Reddy's Ltd. 4#5FY23 Highlights (1/2) 1 Healthy business growth o Revenues in North America Generics & in Branded markets of India & EM crossed $ 1 bn mark for second consecutive year 2 Launched Lenalidomide capsules in the US (as part of the volume limited settlement with innovator) 3 Healthy EBITDA at 30% and ROCE at 35% 4 Strong Free Cash Flows, leading to a net cash surplus of $ 614 mn 5 Acquisitions of - o Cardiovascular brand CidmusⓇ in India ○ Mayne Pharma's US generic product portfolio ○ Eton's branded and generic injectable products in the US 6 Enhanced focus on core by divesting certain non-core brands in India#6FY23 Highlights (2/2) 7 80 66 9 Significant progress in biosimilar business o Launch of biosimilar StimufendⓇ (Pegfilgrastim) by Fresenius Kabi in US Clinical studies of Rituximab biosimilar completed and filed in US, EU and UK-MHRA ○ Phase 1 study of Tocilizumab biosimilar completed and Global Phase 3 study initiated Settlement of the impending IP litigation for g Suboxone Our largest manufacturing facility in Hyderabad, joins Global Lighthouse Network of the World Economic Forum 10 Horizon-2 strategic licensing deals with - ○ CardiaCare (wearable for atrial fibrillation treatment) ○ Theranica (wearable in migraine management) O WZTL (third generation CAR-T asset for clinical trials in India) ○ Junshi's Biosciences (Toripalimab in India and other markets) © copyright Dr. Reddy's Ltd.#7We are transforming into a digital organization FTO-3, our largest manufacturing facility, designated as an 'Advanced fourth Industrial Revolution (4IR) Lighthouse' by the World Economic Forum MEMBER GLOBAL LIGHTHOUSE NETWORK FTO Journey so far - . • Digitization of infrastructure & processes Project 'OpsNext' - Six Industry 4.0 technologies, 40+ use cases and heavy investment in people capabilities Significant business results seen - • • 43% manufacturing cost improvement 30% reduction in production lead time 41% energy consumption reduction On-going efforts to - Stay competitive Meet business imperatives Achieve ESG goals Our aspiration is to be the most efficient pharma operations in the world 7#8Financials 8 PROPRIETARY#9Sustaining double digit growth in Revenue & EBITDA Revenues CAGR: 12.1% EBITDA CAGR: 16.3% 7.3k cr ($ 0.9 bn) 19.0k cr 17.5k cr ($2.1 bn) 21.4k cr ($2.6 bn) 24.6k cr ($ 3.0 bn) 4.6k cr ($ 0.6 bn) 4.7k cr 5.1k cr ($0.6 bn) ($0.6 bn) ($ 2.3 bn) 26.6% 25.0% 24.0% 29.7% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EBITDA% to Revenues USD/INR = 82.19 (rate as on 31st Mar, 2023) 9#10While we continue to drive productivity, we are also investing for future growth Gross Margin: Increase driven by high margin new product sales & higher government incentives SG&A: Investing in brands and digital capabilities 56.7% 54.2% 53.8% 54.3% 53.1% FY19 FY20 FY21 FY22 FY23 R&D: Focus on high value generics including biosimilars 10.1% 8.8% 8.7% 8.2% 7.9% 31.7% 28.7% 28.8% 29.0% 27.7% 4.9k cr ($ 0.6 bn) 5.0k cr ($ 0.6 bn) 5.5k cr ($ 0.7 bn) 6.2k cr ($ 0.8 bn) 6.8k cr ($ 0.8 bn) FY19 FY20 ■SG&A cost FY21 FY22 % to Sales FY23 Capital expenditure: Selectively investing to augment capabilities, including injectables and biosimilars 1.5k cr 1.6k cr ($ 0.2 bn) 1.5k cr ($ 0.2 bn) 1.7k cr ($ 0.2 bn) 1.7k cr ($ 0.2 bn) 1.9k cr ($0.2 bn) 1.0k cr ($ 0.2 bn) 1.1k cr ($ 0.1 bn) 0.7k cr ($ 0.1 bn) 0.5k cr ($ 0.1 bn) ($ 0.1 bn) FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ■R&D cost % to Sales USD/INR = 82.19 (rate as on 31st Mar, 2023) 10#11Improving Return Metrics and Strong Balance Sheet, provides us an opportunity to grow further Free cash flow: Robust cash-flow generation from operations Net Debt/Equity: cash surplus; providing strength for expansion 0.09 *4.0k cr ($0.5 bn) -0.03 -0.04 -0.08 2.2k cr ($ 0.3 bn) 2.3k cr ($ 0.3 bn) 2.5k cr ($0.3 bn) -0.21 1.2k cr ($ 0.1 bn)* FY19 FY20 FY21 FY22 FY23 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 *Lower due to planned unwinding of receivable discounting by 0.9K cr Earnings Per Share (in INR) Return on Capital Employed: Significant improvement seen 34.6% 14.7% 12.2% 270.9 19.6% 17.8% 113.1 117.4 141.7 103.6 FY19 FY20 FY21* FY22* FY23 FY19 FY20 FY21 FY22 FY23 *Impacted due to impairment charge taken USD/INR = 82.19 (rate as on 31st Mar, 2023) 11#123-year Total Shareholder Return Dividend EPS Rs 3,984 Rs 3,679 Rs 25 Rs 30 Rs 103.7 Rs 141.7 Rs 5,576 FY21 *Closing price of May 8th, 2023; Opening rate as of May 9th 2020 Total Shareholder Return (3 Years) FY22 FY23 Dividend + Capital Gains Rs. 1,003 Dr Reddy's CAGR 3 Year : 7.8% 5 Year: 19.5% Rs 40 Rs 270.9 Rs 4,907* 12 copyright Dr. Reddy's Ltd.#13Business Strategy 13 PROPRIETARY#14We continue to progress on our journey in two horizons... Horizon 1 - Growing the core Horizon 2 - Building the future Generics Branded Generics API Immuno- oncology NCES Disease Management CDMO (small and large mol.) Nutraceuticals Biosimilars OTC Biologics & CGT Digital Services D2C (drivers in short to medium-term) (drivers in short to long-term) D2C: Direct-to-customer; CGT: Cell & Gene therapy; OTC: Over the counter 14 © copyright Dr. Reddy's Ltd.#15...to deliver our future aspiration Growth Serving 1.5Bn+ patients (3X from current baseline) Double digit revenue growth Returns 25% EBITDA and 25% ROCE Sustainability Be a leader 15 copyright Dr. Reddy's Ltd.#16With patient at the center, our execution is driven by three pillars of Market Leadership, Productivity and Innovation . Digital and Automation • Operational & Commercial Excellence Productivity • Continuous Improvement Leadership in chosen spaces To Serve 1.5Bn+ patients Sustainability • Focus on 'products that matter' о Economy of Scale, Complex, Brands and Clinically differentiated products • • Patient-focused Innovation • Incremental & breakthrough Unmet needs & user delight Horizon-1 & Horizon-2 16 copyright Dr. Reddy's Ltd.#17Core businesses - Generic Markets North America - Growth in 9 out of last 12 quarters Win in channels Retail 60%+ products are ranked 1-3 Institutional 58% + products are ranked 1-3 OTC Private label Ranked 2 in Rx- OTC segment • 190+ commercial products Robust pipeline* of 175+ products, 81 of them filed ~40% Injectables/Sterile products • 25+ complex products • At advanced stages on multiple platform technologies - Particulate Systems, Microsphere & Liposomal, Peptides platform, Emulsions and Suspensions Focus areas Horizon-1 - Injectables, retail generics productivity, OTC & direct to patients Horizon-2 - Biosimilars, digital solutions, drug-device combos & immune oncology Europe -21% sales CAGR in last four years Continuous Growth & expansion • New countries Strong pipeline* of biosimilars and generics • Focus areas 5 added in the last year 185 Commercial products Source: Internal analysis, IQVIA *Pipeline means products filed or in under development stage or approved but yet to be launched Horizon-1 - Build scale in EU5 (Germany, UK, Spain, France & Italy), selective expansion to other markets & first to market launches Horizon-2 - Branded businesses (Differentiated branded & OTC), New spaces (Pharmaceutical Cannabis) & Biosimilars 17 © copyright Dr. Reddy's Ltd.#18Core businesses - Branded Markets India - 2X growth in last four years Driving strong outcome 16 Brands in IPM Top 300 Brands with >100Cr+ 15+ 12 MQT Rank in the IPM • Aim to be among Top-5 in India • Focus areas Horizon-1 - Build big brands, winning in chosen therapy/ disease areas (through differentiated portfolio & inorganic play) & S&M productivity (using digi-analytics) Horizon-2- Nutraceuticals, OTC, biologics, CAR-T, NCE / NBE, condition & disease management, digital ecosystem play & others Emerging Markets - 2X growth in last five years Driving strong outcome • Markets added 13 in last 5 years Russia - 40 products, 6 mega-brands, & 800+ employees China - Double-digit filings annually Serving patients 48 in 48 countries 11 520 Filings in last 4 years Brands with >100 Cr+ • Focus areas Horizon-1 - Grow Mega-brands (Rx & OTC), Leverage global portfolio in EM & S&M excellence Horizon-2 - Differentiated formulations, Nutrition portfolio, Biologics, NCE / NBE, Disease management & Direct-to-Customer 18 Source: Internal analysis, IQVIA *Pipeline means products filed or in under development stage or approved but yet to be launched ©copyright Dr. Reddy's Ltd.#19Core businesses - Our PSAI business is... A Essential for our competitive advantage B Key to leveraging our current portfolio across markets Key to enable global access to address unmet patient needs 1 API 2 Develop, manufacture and sell APIs to customers globally Aim to backward-integrate 70%+ core molecules in next 5 years 225+ active DMFs, 55+ products in pipeline API+ Institutional & B2B sales of value-added offerings above the API Currently in 25+ countries; Aim to be in 60+ countries in next 5 years 3 Discovery + CDMO (APSL) Discovery + CDMO services to originator & biotech companies Serving 3 of top 5 innovators and 120 biotech companies globally Health access business Working with public health institutions to enhance access 5Mn+ lives during Covid-19; Aim to impact 500Mn+ lives in the next five years 19 © copyright Dr. Reddy's Ltd.#20Biologics - We are scaling-up to build a global Biosimilars business in Horizon-1 and CGT and CDMO in Horizon-2 We are building a Global biosimilars business with Highly Regulated Market Approvals focused on development of Monoclonal Antibodies and complex fusion proteins Building Biologics Scaling-up current Biosimilars business # Out-licensed product PEG-GCSF: Launched in US and Europe markets with our partner • Rituximab: Completed Global Safety Efficacy trials and expected filing for regulated markets by Q1 FY24 We have a current portfolio of 6 commercial products in India and in 27+ Emerging Markets Robust pipeline of $50Bn+ of Innovator Peak Sales Focus areas: Oncology & Auto-Immune disease 12 Products in pipeline across various stages of development; 1 approved By FY24 • Other Modalities such as Anti-body Drug Conjugates, Cell-Gene Therapy 5 products in clinical phase 2 additional products scaled-up CDMO Biologics 20 © copyright Dr. Reddy's Ltd.#21We are doubling down on our innovative work on cancer with the mission of conquering cancer through our subsidiary Aurigene Oncology • • • 350+ Scientists 200+ 80+ Discovery NCE patents projects 19+ Under 20+ Years of clinical devp. exp. Aurigene Oncology Conquering Cancer Our focus - To discover & develop therapeutics to improve lives of cancer patients • Contributed to deliver 19 novel chemical entities for clinical development Out-licensed several first/best-in-class compounds Recently established capabilities in anti-body drug discovery and Cell & Gene Therapy Healthy product pipeline in discovery and clinical development We have under development a proprietary product pipeline of 15 programs - ⚫ Clinical stage - 8 programs IND stage-2 programs Lead optimization stage - 5 programs • In addition, we have 11 partnered programs under clinical stage 21 copyright Dr. Reddy's Ltd.#22The Industry is facing a shift and we are investing to lead Our Approach: Anchored in our Purpose Fulfills an unmet need Meaningful opportunity End-to-End Right to Win disease thinking ooooo Scaling-up Immuno-oncology NCES CDMO www 00 Horizon 2 areas Nutraceuticals New spaces Differentiated Formulations Preventive & Primary Care Platform SVAAS Biologics and Cell & Gene therapy Disease management ... and more 22 copyright Dr. Reddy's Ltd.#23Sustainability#24Our sustainability journey First sustainability report Dr. Reddy's began voluntary disclosures based on GRI standards First materiality assessment Set our Environmental Commitment Statement (ECS) with 6 goals for 2020 Delivering Good Health & going beyond compliance for a sustainable future ESG goals for 2030 Made sustainability core to our purpose and strategy, strengthened our sustainability commitment for the next decade 2004 2007 2010 2012 2016 2020 2022 2023 Sustainability statement release Covering product responsibility, transparency, operational excellence, human dignity, equal opportunity, and community development Sustainability By Design approach in operations Integrated sustainability into our core business processes 2010 ECS wrap up Achieved 3 goals completely Achieved 3 goals partially Conducted 2nd materiality assessment First integrated report Reporting our financial and non-financial information in a single integrated report with ESG goal progress#25Our ESG goals Transforming to build a sustainable future Being committed to environmental stewardship Reducing carbon emissions • 100% renewable power by 2030 • Carbon neutrality in our direct operations • (Scope 1 and Scope 2 emissions) by 2030 12.5% reduction in indirect carbon emissions across our supply chain (Scope 3 emissions) by 2030 Water positivity Be water positive by 2025 Making our products accessible and affordable for patients Access • Serve 1.5 billion patients by 2030 Affordability • 25% of our new-launches to be first-to- market by 2027 Contributing to a fairer and more socially inclusive world Equity, diversity and inclusion • At least 35% women in senior leadership (3X from the current baseline) by 2030 • Gender parity by 2035 • 3% of our workforce to be persons with disabilities (PWD) by 2030 • 100% living wages for our on-premise extended workforce by 2025 Compliance, Ethics and Corporate Governance Meet the highest standards on compliance and ethics backed by robust corporate governance Innovation • 3 innovative solutions to improve the standard of treatment every year from 2027 Enhancing trust with our stakeholders . ESG disclosures Progressively enhance disclosure on our ESG progress to reach top quartile by 2025 Strategic suppliers • 100% of our strategic suppliers to be compliant with our chosen ESG framework by 2030#26Our credentials Aligned to global frameworks CDP DISCLOSURE INSIGHT ACTION SUSTAINABLE GALS DEVELOPMENT Global positioning +CDP DISCLOSURE INSIGHT ACTION UN GLOBA COMPACT Global Compact United Nations TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES SCIENCE BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION FTSE4Good Water Security B Climate Security A- Supply Chain A- MEMBER OF Dow Jones Sustainability Indices SAM 2021 In collaboration with RobecoSAM brand Bloomberg Gender-Equality Index Emerging Markets Global position 1st 8th PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCIPLI Building responsible supply chains MEMBER OF Dow Jones Sustainability Indices In collaboration with SAM o RobecoSAM brand ecovadis 2022 score 47#27Recognition for our work Strong ESG positioning Featured in the top 10 global pharma companies scoring 74/100 in the 2022 S&P Global's CSA (21 Oct 2023) and Sustainability Yearbook 2023 for the 3rd year in a row Our 7th consecutive year inclusion in the Dow Jones Sustainability Index in the Emerging Markets category Scored an A- on CDP's Climate Change, a B on CDP's Water Security, and A- on CDP's Supplier Engagement rating in 2022 Rated 'STRONG' in CRISIL's Sustainability Yearbook 2022 ■ Building on governance Won the Gold Shield in our category from the Institute of Chartered Accountants of India (ICAI) for Excellence in Financial Reporting for 2021-22. Won Risk Management Team of the Year Award at CRO Leadership Summit and Awards 2022 Recognized as Company of the Year- America at the prestigious Global Generics and Biosimilars Awards 2022 Won the Cloud Innovation of the Year award at the NASSCOM Cloud Summit for our digital health subsidiary, SVAAS Wellness Investing in our people Recognized for the 6th year in a row in the Bloomberg Gender- Equality Index, featuring as the only Indian pharma company. Named among the top 20 employers in pharma/biotech globally by the Science Won the Candidate Experience Award 2022 in the United States for the 4th time in a row Reducing our environmental impact ▪ Named among Asia-Pacific Climate Leaders 2023 by Financial Times (London) and Statista ■ Recognized as an Advanced Fourth Industrial Revolution Lighthouse, part of the Global Lighthouse Network by World Economic Forum ■ Won the IGBC Green Champion Award 2022 in the category 'Pioneer in large scale adoption of green factory buildings in India'#28Dr. Reddy's THANK YOU Classification PUBLIC