#1NATCO PHARMA LIMITED INVESTOR PRESENTATION Q2FY24 NATCO 1#2DISCLAIMER/IMPORTANT DISCLOSURE NATCO THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF NATCO PHARMA LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE "COMPANY"). The material that follows is a Presentation of general background information about the Company's activities as at the date of the Presentation or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward- looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company's intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company's actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and expansion plans (iii) changes in regulatory norms applicable to the Company (iv) technological changes (v) investment and business income (vi) cash flow projections etc. (vii) exposure to market as well as other risks. The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements based on any subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. 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This document is just a Presentation for information purposes and private circulation only and is not intended to be a "prospectus" or "offer document" or a "private placement offer letter" (as defined or referred to, as the case may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the equity shares of the Company or any of its subsidiaries. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company's securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This presentation is confidential and this presentation or any part thereof should not be used or relied upon by any other party or for any other purpose and should not be copied, reproduced, recirculated, redistributed, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of the Company. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any persons in possession of the aforesaid should inform themselves about and observe any such restrictions. 2#3KEY HIGHLIGHTS Diversified enterprise focused in pharmaceutical sector with presence across geographies - India, US and ROW Strong brand position in domestic pharma segments • Well established player in oncology with brands catering to diseases including breast, bone, lung and ovarian cancer Expanding reach to wider pool of doctors through NATCO REACH • Focused on complex generics for the US Markets with niche Para IV and Para III filings • Established front-end presence through Dash acquisition Two R&D centers with around 465 employees (1) Targeting growth in Crop Health Sciences business with state-of-the-art manufacturing facilities for both technical and formulation Total revenues (2) of ₹28,117 million for the financial year ended 31st March 2023 Listed on BSE and NSE with a market capitalisation (3) of USD 1.89 billion Incorporated in 1981 and headquartered in Hyderabad with around 4,900 employees across all locations (1). (1) As of March 31, 2023 (2) Represents consolidated revenue (3) Market capitalization as of Sept 30, 2023 using INR / USD exchange rate of 83.1073 NATCO 3#4PERFORMANCE AT A GLANCE Financial Performance (1) (million) 1400 1200 1000 800 600 400 200 22,424 22,247 21,557 20,224 20,438 9,688 6,962 9,250 6,444 6,900 7,098 4,608 4,409 3,625 1,700 FY18 FY19 FY20 FY21 FY22 Revenue ■EBITDA PAT NATCO Pharma Stock Performance 0 28-Sep-18 28-Sep-19 FY numbers have been prepared under Ind AS 28-Sep-20 (1) Represents consolidated gross revenue and includes other income (3)As on September 30,, 2023 28-Sep-21 28-Sep-22 28,117 43.2% 41.6% 10,402 7,153 Profitability Margins NATCO 34.1% 32.9% 31.0% 29.0% 37.0% 25.4% 22.8% 20.5% 17.7% 8.3% FY23 FY18 FY19 FY20 FY21 FY22 FY23 ■EBITDA% PAT% Efficiency Ratios Ownership Structure (3) 29% 24% 50.29% 49.71% 23% 18% ■ Promoter ■ Public 15% 14% 12% 11% 5% 4% 18% 15% 28-Sep-23 No. of fully paid-up equity shares held: 17,91,09,870 FY18 FY19 FY20 FY21 FY22 FY23 ■ROE ROCE (2) Represents PAT after minority interest 4#5KEY BUSINESS SEGMENTS DOMESTIC FORMULATIONS EXPORT FORMULATIONS SUBSIDIARIES NATCO API BUSINESS Overview (1) Three key business segments: Oncology, Specialty Pharma, Cardiology and Diabetology Strong brand position in the domestic oncology Specialist sales force of nearly 550 personnel and ~1,000 distributors Strengthened C&D portfolio through additional 250+ sales force Launched 11 new products across oncology and C&D Targeting 20 product launches a year with over 12% growth Strengthening the gastroenterology, critical care, oncology and cardio-diabetes portfolios with expanded geographical, disease and therapy area coverage. Focused on niche opportunities in the US, Canada and emerging markets Integration of Dash Pharmaceuticals LLC complete and name changed to Natco Pharma USA LLC Focus on Para IV and First-to-File molecules Strengthening presence in South-east Asia, MENA and LATAM among other ROW markets by registering our niche product portfolio in these countries. • Operations in Brazil, Canada, Singapore, Australia and Philippines Amongst top 10 generic companies by sales revenue in Canada. Strong portfolio of Oncology, cardiovascular and CNS therapies In Brazil, continued to increase our presence in the Oncology and primary healthcare segments with strong market share in Everolimus and Apixaban Building a strong product portfolio in Singapore in both Tender and Private segments. • 45 active DMFs (2) in the US with niche products under development Exports focused on US, Europe and emerging markets Oncology APIs and specialty products Difficult-to-make chemistry with long synthesis. Expanding our portfolio. oligonucleotide 1.As of March 31, 2023 2.As of Sept 30, 2023 5#6US MARKET FOCUS- COMPLEX GENERICS & FRONTEND KEY PRODUCTS IN THE PORTFOLIO (1) Afinitor(2.5 mg, 5 mg, 7.5 Tykerb Zortress Molecule Lenalidomide Glatiramer Acetate Oseltamivir Everolimus (higher strength) Lanthanum Carbonate Liposomal Doxorubicin LapatinibDitosylate Everolimus (lower strength) NATCO Therapeutic Segment / Primary Indication Cancer/Multiple Myeloma CNS/Multiple Sclerosis Anti-Viral/Influenza Cancer/Breast Renal disease Cancer/Ovarian and other Cancer/Breast Immunosupressant/Organ Transplant Predominantly focused on high-barrier-to-entry products that are typically characterized by one or more of the following: Intricate Chemistry ■ Challenging delivery systems Difficult or complex manufacturing process Will continue to work with partners for complex products or those involving unique patent challenges Low risk business model; through partnerships with global pharmaceutical players ■ Marketing partner typically responsible for litigation and regulatory process to secure ANDA approval. Multi-site approvals ■ Multi-sourcing arrangements Launched Ondansetron, Nitroglycerin and Armodafinil through NATCO Pharma USA LLC. Revlimid Key Brand Copaxone Tamiflu mg and 10 mg) Fosrenol Doxil PIPELINE OF NICHE IN THE US 23 Para IVs in the pipeline (2) Of which 15 are approved (2) (either tentative or fully). SOLO FIRST TO FILE IN THE PIPELINE (1) Key Brand Key Brand Molecule Therapeutic Segment / Primary Indication Eliquis Apixaban KEY PARA IV PRODUCTS IN THE PIPELINE (1) Molecule Therapeutic Segment / Primary Indication Anticogulant Ozempic Semaglutide pen Diabetes Tracleer Kyprolis Imbruvica Ibrutinib (tablet) Bosentan (32mg) Anti-hypertensive Lynparza Olaparib Carfilzomib (10mg) Cancer/Multiple Myeloma Kyprolis Carfilzomib Cancer/Leukaemia Imbruvica Zydelig Lynparza Ozempic Balversa Idelalisib Cancer Pomalyst Olaparib Semaglutide pen (8mg/3ml) Erdafitinib Ovarian/Breast Cancer Lonsurf Ibrutinib Pomalidomide Trifluridine/Tipracil Ovarian/Breast Cancer Cancer/Multiple Myeloma Cancer/Leukaemia Cancer/Multiple Myeloma Metastatic colorectal cancer Diabetes Bladder Cancer 1.As of Sept 30, 2023 2. As of Sept 30, 2023. Approval received either by Natco or its marketing partner Yondelis Trabectedin Calquence Zydelig Acalabrutinib Idelalisib Advanced soft-tissue sarcoma/ ovarian cancer Cancer/Blood Cancer 6#7RESILIENT DOMESTIC PHARMA BUSINESS OVERVIEW OF DOMESTIC PHARMA BUSINESS Three key business segments: Oncology, Pharma specialty and Cardiology & Diabetology Focus on niche molecules with high barriers to entry. Majority of launches in India are first-time branded generics Strategic entry into high volume mass market with innovative products Promising pipeline of ~40 innovative molecules for future growth in specialty business Launched 11 products across the three business segments during FY 2022-23 DOMESTIC FORMULATION SALES(¹) (* IN Million) ONCOLOGY NATCO One of the leaders in the branded oncology medicines in India Two decades of strong presence in oncology segment with 54(¹) in 2022-23 Portfolio of well recognized brands - 6 brands with INR 100mn+ sales in the oncology segment Widened its oncology product range with introduction of additional therapy options for liver/kidney/prostate cancers and entering into the untapped market of ovarian cancer with a novel agent. PHARMA SPECIALTY 7,202 7,347 4,101 4,770 5,405 ساا 3,749 FY18 FY19 FY20 FY21 FY22 FY23 FY numbers have been prepared under Ind AS (1) Represents gross revenue 23 Brands in #1 position in indicated prescription Around 650 sales force in India 8 Brands in excess of INR 100mn+ sales 6,000+ doctors engaged through continuous professional development programmes Focus increased in areas other than Hep-C: Hep-B, Ortho-Rheuma, Critical care Market penetration into new disease areas and increased customer base translating into higher market share. CARDIOLOGY & DIABETOLOGY Strengthened the portfolio with anticoagulants, anti-diabetics, anti- hypertensives, metabolic disorder therapies with novel products Apigat achieved #1 position in prescriptions with extensive market penetration and customer acquisition Fortified anti-diabetic portfolio by introducing new-age gliptins like sitagliptin Capitalised on health & nutrition awareness phenomenon with introduction of cutting-edge formulation of Vitamin D3- Nanonat D3 Expanding reach to wider base of doctors/patients/geographies through NATCO Reach by adding 250+ sales executives. 7#8EXPANDING ROW PRESENCE NATCO CANADA Strong portfolio with 30+ products including Oncology, anti-viral, cardiovascular and CNS therapies Amongst top 10 generic companies by sales revenue in Canada 25 approvals in place Highest market share of Nat-Lenalidomide in this molecule Launched Nat-Pomalidomide, Nat-Apixaban, Nat-Teriflunomide in the market BRAZIL Launched Apixaban in Brazil, amongst the first to launch, through own sales and out-licensing Launched Azacitidine in Brazil through generic and brand, second generic in the market Launched Gefitinib- first to launch and the only generic Launched Vildagliptin, only generic and first-to-launch Continue to be the single source for Everolimus for the fourth consecutive year Strong market share for Oseltamivir Launched first generic Azacitidine in the market PHILIPPINES SUBSIDIARIES REVENUE (IN Million) 4,011 1,814 .... 1,086 1,085 946 3,752 Gaining market share in branded generics in oncology by making available basket of products at attainable prices Increasing reach in the country by selling products in additional provinces FY18 FY19 FY20 FY21 FY22 FY23 Natco has 8 subsidiaries including two step-down subsidiaries NZ ASIA-PACIFIC Participated and won large tender in Hong Kong market for Oseltamivir capsules Launched Oseltamivir capsules in China market- Natco's first product launch in the territory Won large tenders for Imatinib tablets & Erlotinib tablets in Thailand market Launched first generic Apixaban in Myanmar, Thailand & Philippines Acquired significant market share for Tenofovir Alafenamide Fumarate in Thailand, Indonesia & Vietnam markets *Includes one-time licensing fee 8#9API FACILITES NATCO Strategically important business - develops APIs primarily for third party sales and also for captive consumption Portfolio of 45 (¹) active US DMFs with niche products under development Focus on complex oncology molecules. Other therapeutic areas of development includes CNS and Orphan indications Exports are focused on the US, EU, Latin America and RoW markets. In-house KSMs for several APIs a key competitive advantage MEKAGUDA TELANGANA Oncology API's and speciality products Approvals from USFDA, PMDA (Japan), COFEPRIS (Mexico), EDQM (Europe), ANVISA, WHO, EU GMP (Germany), CDSCO STRENGTHS Complex multi-step synthesis & scale-up Advanced synthetic/separation technologies Containment facility for handling High potency APIs Peptide (Solid phase) pharmaceuticals Oligo nucleotide Pharmaceuticals Well established process safety engineering lab (1) As of Sept 30, 2023 Last USFDA audit successfully completed and EIR received in September 2019 CHENNAI TAMIL NADU Dedicated for Oncology USFDA, CDSCO, WHO-GMP USFDA audit with Establishment Inspection Report (EIR) received in July 2019 9#10FORMULATION FACILITIES INTERNATIONAL MARKETS DOMESTIC MARKETS NATCO PHARMA LTD NATCO KOTHUR TELANGANA Oral and solid dosages including dry powder, cytotoxic & non- cytotoxic orals and cytotoxic injectables. USFDA, GMP, DCA, German Health Authority, Australia TGA, ANVISA (Brazil) USFDA audit conducted in October 2023, received Form 483, awaiting EIR VISAKAPATNAM ANDHRA PRADESH Solid oral tablet and capsule manufacturing Site approval received from USFDA. ANVISA, Health Canada Authority Located in a Special Economic Zone (SEZ) USFDA audit with Establishment Inspection Report (EIR) received in June 2023 NAGARJUNASAGAR TELANGANA GUWAHATI ASSAM Oncology, Antibiotics and Antiviral Tablets, Capsules ANVISA (Brazil), WHO GMP and Kenya MOH, EFMHACA- Ethiopia, NMRA- Sri Lanka, Health Canada Approvals in place to service regulatory markets WHO-GMP, CDSCO Compliant facility DEHRADUN UTTARAKHAND Tablets, Capsules GMP, WHO-GMP, Public Health Service of the Netherlands (EU GMP) 10#11R&D CAPABILITIES R&D Expense (in million) 2,500 12% NATCO 14.0% R&D capabilities demonstrated by its complex and niche product filings in formulations and API segments 12.0% 2,000 9.3% 9.1% 8.7% 10.0% 8% 1,500 7.8% 8.0% 2,267 6.0% 1,000 1,976 1,950 1,665 1,656 1,596 4.0% 500 2.0% 0.0% FY18 FY19 FY20 FY21 FY22 FY23 R&D Expense R&D Expense% 8% 22% Two research facilities with capabilities across synthetic chemistry, nano pharmaceuticals, new drug discovery and cell biology Specialised R&D laboratories in two research facilities Talented Pool of Scientists: 465(1) 9% 4% FINISHED DOSAGE FORMULATIONS (FDF) (2) ACTIVE PHARMACEUTICAL INGREDIENTS (API)(2) 27% ■ AR & D 5% ■CR & D ■ Masters ■FR & D ■ Ph.D. ■ Others ■ NDDS ■RA 23 Para IV filings in pipeline 56 Cumulative DMFS filed 30% 70% Others 25% BREAKDOWN OF SCIENTISTS FY numbers have been prepared under Ind AS (1) As of March 31, 2023 2) As of Sept 30, 2023. Does not include integrated DMFS filed with ANDAS 15 approved Para IV (either tentative or final) 45 active DMFS 11#12NATCO CROP HEALTH SCIENCES Leveraging strong Techno-Legal expertise in Pharma to drive business in Agro-Chemical segment. Manufacturing Facilities include a Technical (Active Ingredient) and Formulation asset, located in the state of Andhra Pradesh. Operate additional leased facilities, especially to supply Granule Products. Targeting two categories of products - bioproducts and pesticides. Successfully launched broad-spectrum insecticide Chlorantraniliprole (CTPR) based products in India across key agrarian states. Launched first pheromone-based mating disruption product for management of Pink Bollworm pest for cotton Focus on registration of niche molecules, for both domestic and international markets. Technical Unit, Nellore, AP R&D Strong Chemistry team focused on development of Active Ingredient with emphasis on backward integration & cost optimization. Formulation development team with derived expertise from Pharma standards of quality and control for consistent delivery of product Target niche products post Intellectual Property (IP) assessment and Freedom to Operate boundaries PRODUCT DEVELOPMENT Field testing and wide area demonstrations of newer chemistries pan India Village adoption programs across different states for pest management Farmer training about new technologies SALES & DISTRIBUTION Sales & Marketing team comprises of over 300 direct and indirect employees Strategically picked distributors and dealers across all key zones in India Formulation Unit, Nellore, AP 12#13QUARTERLY FINANCIAL SUMMARY SEGMENTAL BREAKDOWN (INR Million) Revenue Division A) API Revenue Q2FY24 Q1FY24 Q2FY23 FY23 FY22 778 751 441 2,103 2,481 B) Formulation B1) Formulation - Exports (incl profit share, license income, export service income & Subsidiaries) 7,923 8,842 2,834 20,632 11,842 B2) Formulation - Domestic 1,025 1,324 935 3,749 4,771 Formulations Total Revenue (B1 + B2) 8,948 10,166 3,769 24,381 16,612 c) Crop Health Sciences 558 447 30 409 51 D) Other Operating & Non - operating incomes 324 238 286 1,224 1,293 Consolidated Total Revenue 10,608 11,602 4,526 28,117 20,438 KEY FINANCIAL SUMMARY (INR Million) Financial Summary Q2FY24 Q1FY24 Q2FY23 FY23 FY22 Revenue 10,608 11,602 4,526 28,117 20,438 Earnings before Interest, Tax, Depreciation and Amortization 4,874 5,477 1,023 10,402 3,625 (EBITDA) EBITDA Margin* (%) 45.9% 47.2% 22.6% 37.0% 17.7% Profit After Tax (PAT) 3,690 4,203 568 7,153 1,700 PAT Margin (%) 34.8% 36.2% 12.5% 25.4% 8.3% *includes other income NATCO 13#14CONSOLIDATED PROFIT & LOSS STATEMENT (as reported) NATCO Profit & Loss Statement (INR Million) Total Revenue Q2FY24 Q1FY24 Q2FY23 FY23 FY22 10,608 11,602 4,526 28,117 20,438 Gross Profit 8,450 9,642 3,468 21,844 14,829 Gross Margin (%) * 79.7% 83.1% 76.6% 77.7% 72.6% Overheads 3,576 4,165 2,310 11,442 11,204 Earnings before interest, tax, depreciation and amortization (EBITDA) 4,874 5,477 1,023 10,402 3,625 EBITDA Margin* (%) 45.9% 47.2% 22.6% 37.0% 17.7% Finance cost 42 42 38 145 177 Depreciation Profit before tax (PBT) Tax 436 435 417 1,638 1,426 4,396 5,000 703 8,619 2,022 706 797 135 1,466 322 Profit after tax (PAT) 3,690 4,203 568 7,153 1,700 Reported Earnings per share (EPS) INR - Basic and Diluted 20.6 23.26 3.11 39.18 9.32 *includes other income 14#15CONSOLIDATED BALANCE SHEET (as reported) Balance Sheet (INR Million) Net tangible assets Goodwill and other intangibles Financial assets Deferred tax asset (net) Other non-current assets Other non-current tax assets Inventories Cash and cash equivalents Trade receivables Other financial assets NATCO As of September 2023 As of March 2023 Assets 23,531 1,984 2,550 23,034 1,878 1,043 152 0 481 271 345 345 7,098 7,429 7,195 5,463 11,198 8,561 5,050 6,260 Other current assets Total assets 2,956 2,290 62,540 56,574 Liabilities Equity 52,935 48,738 Borrowings 2,388 1,650 Lease liabilities (Current & Non-current) 87 17 Deferred tax liabilities (net) 46 124 Other financial liabilities 33 17 Provisions (Current & Non-current) 1,164 1,022 Trade payables 3,661 2,638 Other current financial liabilities 814 859 Current tax liabilities (net) 673 101 Other current liabilities 739 1,408 Total liabilities Total Equity & Liabilities 9,605 7,836 62,540 56,574 15#16Contact Us 250m 12 IG 10.12 250m BOROSU 10 UITO Thank You NATCO For any queries, please contact Rajeev Menon, Investor Relations [email protected] Rajesh Chebiyam, Executive Vice President, Crop Health Sciences [email protected] Phone: 040-2354 7532 16