#1Granules India Limited Investor Presentation - May 2023 100 ranules GRANULES 1#2Agenda 01 Company Overview 02 Strategic Levers 03 Financial Highlights 2#3COMPANY OVERVIEW Transforming with Science and Technology Vision: To be the global leader in pharmaceutical manufacturing by process innovation and unparalleled efficiencies 1800#4Company Overview About Us Granules India is a vertically integrated, high- growth pharmaceutical product manufacturing based in company Hyderabad, India. We manufacture high-quality API, FD, PFI and Speciality Products with a focus on customer centricity Establishment in 1984 Business Verticals Vertically integrated across value chain FD PFI ΑΡΙ e $ Global Reach 80+ countries 300+ customers 60+ ANDA filings Core products Paracetamol Metformin Ibuprofen Guaifenesin Methocarbamol R&D Inaugurated a new 20,000 sqft state of the art R&D facility at Genome Valley with more than 150 scientists across both divisions Manufacturing Base 7 operational facilities; 6 in India, 1 in US One of the world's largest paracetamol API facilities World's largest PFI facility One of the largest single- site FD facilities Installed Capacity 39,360 TPA of API 24,640 TPA of PFI 28.3 Bn dosages of FD Regulatory Approvals USFDA, EDQM, EU GMP, COFEPRIS, WHO GMP, TGA, KFDA, DEA, MCC, HALAL People Strength 5,000+ people 90+ people at GPI, Chantilly, USA#5Our Differentiating Edge Economies of scale › Our facilities can accommodate large-scale customers with our industry-leading batch size of 6MT in PFIS 1.I. Î › Our dedicated R&D team is committed to developing products and process. efficiencies to create a diverse range of cost-effective offerings Strong R&D capabilities R&D Vertically integrated model > An integrated value chain that has promoted us from an API manufacturer to a global pharmaceutical player › Spotless regulatory approvals history including US FDA Impeccable regulatory compliance LO 5#6Our Journey: Three decades of delivering on promises Formative years with focus on APIs Global footprint, Established dominance in Core APIs + PFIs, Entered Finished dosages space Expanding into complex generics + Strengthening market penetration in regulated markets Moving towards complex technology 1984 1990 1991 1993 1995 2001 2002 2003 2005 2008 2010 2013 2014 2014 2015 2016 2019 2020 2022 2022 Established first PFI facility at Jeedimetla Incorporated Granules India Private Limited Opened 2nd API facility in Jeedimetla Granules formed as Triton Labs to produce Paracetamol API at Bonthapally Listed on the BSE Entered the Finished dosage segment Merger of Triton with Granules New Paracetamol plant at Bonthapally Listed on the Hyderabad Stock Exchange Set up a large-volume PFI facility in Gagillapur and a wholly owned subsidiary Granules USA for marketing in the US Received USFDA Acquired API manufacturing facility in Vizag to further strengthen the API portfolio Established 15,000 sqft R&D facility in Hyderabad approval for its first ANDA Laid down the foundation for its Oncology OSD Plant in Vizag Entered OTC business in US through Granules Consumer Healthcare Incorporated Granules Pharmaceutical Inc in the US to focus on formulations in the US Acquired Sajjla Bio Labs to augment Biotechnology R&D Laid foundation for the largest single manufacturing site for MUPS facility Commenced sale of Rx Products in the US under the GPI Label Completed share buy-back worth Rs.311 Cr (including taxes and transaction cost) 9#7Our Manufacturing Footprint: 7 facilities - 6 in India and 1 in US 13 Installed capacity › 34,560 TPA > 4,800 TPA Value chain Facility location › Bonthapally › Jeedimetla ΑΡΙ > Vizag (Unit IV) > 380 KL ΑΡΙ > Vizag (Unit V) > 15 KL › Bonthapally II (API Intermediate) > 61.5 KL Approvals › U.S. FDA, EDQM, WHO, COFEPRIS, INFARMED › U.S. FDA, EDQM, COFEPRIS, WHO, CDCSO › U.S. FDA, KFDA, EU GMP, WHO GMP, EDQM › EU GMP PFI › Gagillapur > 23,200 TPA › US FDA, COFEPRIS, TGA, MCC, INFARMED PFI › Jeedimetla > 1,440 TPA > WHO GMP, COFEPRIS, INFARMED › Gagillapur > 26.8 Bn › US FDA, MCC, COFEPRIS, TGA, INFARMED FD > Virginia, USA > 1.5 Bn › US FDA, DEA > Vizag (Unit V) > 1.1 Bn › EU GMP 7#8Empty#9Leadership team - Our Management C Krishna Prasad Chairman and Managing Director Dr. K.V.S. Ram Rao Joint Managing Director & Chief Executive Officer Uma Devi Chigurupati Executive Director Priyanka Chigurupati Executive Director of GPI and GUSA Harsha Chigurupati Executive Director Mukesh Surana Uma Rao G PV Srinivas Chief Financial Officer Chief Human Resources Officer Chief Technology Officer Anil Arora President - Formulation Operations Sanjay Kumar Senior Vice President - Corporate Strategy & Planning 6#10Our Business Structure Granules India Ltd (GIL) (100%) Granules USA (GUSA) Granules Pharmaceuticals Inc (GPI) Granules Europe Ltd (GEL) Granules Lifescience Pvt. Ltd Granules CZRO (100%) Granules Consumer Health (GCH) ✓ GIL: Parent company with presence across the entire pharmaceutical manufacturing value chain from API to finished dosages GUSA: B2B Marketing & Distribution arm for APIs, PFIs and OTC FDs from GIL in the US ✓ GCH: Focused on marketing private-label OTC drugs to retailers in the US. Also, built a packing facility (GPAK) for Rx, OTC and Controlled substances for internal use as well as contract packing services GPI: R&D, manufacturing and front-end division for marketing of Rx products including controlled substances in the US ✓ GEL: B2B Marketing & Distribution arm for APIs, PFIS and FDs from GIL in Europe ✓ GLPL: Created for commissioning new plants in India (applicable for favourable tax regime with lower income tax rate) ✓ GCZRO: Created to establish Integrated Green Pharmaceutical Zone in Kakinada to manufacture products with zero carbon footprint 10#11ANDA/Dossier filing status GPI IP GIL IP Filing Status South Total USA USA Europe Canada UK Others Africa Approved 24 29 5 5 3 1 67 Tentatively Approved 1 1 2 To be approved 5 10 3 2 4 3 27 Total Products 30 40 8 7 4 3 4 96 ANDA/Dossier filed - Therapeutic area wise Analgesics 29 Central Nervous System 20 Cardiovascular 10 Anti-diabetics Mineral supplements 9 5 Anti-Histamines 4 Anti-gout 3 Antitussives 3 Other areas 13 11#12STRATEGIC LEVERS (Granules 2.0) A Strengthening the core Towards excellence in Science, Technology and Innovation B Technology Platforms C Sustainability#13Strategy Lever A: Strengthening our core Built on scale Focused execution Cost leadership through a culture of continuous incremental innovation I Our approach: Manufacturing excellence Granules Core Vertical integration and leadership Vertically integrated across the value chain Leadership in key molecules. Scale advantage in Paracetamol, Metformin and Ibuprofen Among the world's largest facility for Paracetamol API One of the world's largest facilities for the PFIS and FDs Global cost Leadership Successful New product launches Market and customer centricity Quality and compliance Excellent regulatory track record Facilities approved by all major health authorities/regulators Successfully built and ramped up the US business Customer relationship management with key B2B partners I Business Development New Product development Sales Global Leadership Molecules Customer Service Excellence 13#14Strategy Lever B: Technology platforms to reimagine manufacturing through innovation Granules Core Chemistry Excellence Fluorination Manufacturing Excellence Scale & Large Volume Controlled Substances & Onco Infrastructure + Chlorination Nitration Hydrogenation + Others Sustainable Supply Chain Global Leadership in selected Molecules Flow Technology + Bio Transformation Cost leadership Reduced dependency on China Deep Capabilities in R&D New frontiers of Science & Technology Enzyme & Fermentations 14#15Benefits and advantages of Chemistry excellence Flow Technology Efficient Heat transfer Efficient Mass transfer Process controls Variety of chemistries Multiple step reactions ➤ Safer operations Ability to handle hazardous reactions Green Chemistry and Sustainability Faster Reactions & Smaller Lead Time ➤ Lean Operations C Capital Efficiency - Higher Asset Turn Operational Efficiency - Manpower, Utility, Solvents Lower Carbon Footprint I Bio Transformation Biocatalysts encourages the idea of green chemistry as they are mostly renewable, less toxic, and less hazardous having less or no effect on the environment Mild Reaction Conditions Greater Selectivity Simplified Work Streams Fewer byproducts Simplified Processing & Purification Greater Saving Potentials Improved Productivity 15#16Strategy Lever C: Sustainability powered by Science, Technology and Innovation Our Ongoing Sustainability efforts have been focused on Energy, Water & Waste Management Energy consumption Water conservation Reducing GHG emissions Waste management Our efforts are getting recognized in the universe of sustainability CDP DISCLOSURE INSIGHT ACTION Received Score "C" in the 1st CDP Climate Change disclosure in 2022 ecovadis Silver Rating Unit-1 Bonthapally Bronze Rating Jeedimetla unit The facilities at GGP, BPL, JDM, Unit-4 and Unit-5 are ISO certified ISO 14001 We are currently developing a comprehensive, long-term sustainability and ESG roadmap Completed stakeholder engagement, benchmarking, and materiality assessment ■ Baselining and Reporting exercise underway for Scope 1 and Scope 2 emissions Next Steps: announcing our long-term and medium-term decarbonization commitments to our stakeholders Environmental Management System ISO 45001 Occupational Health And Safety Management System#17Sustainability Redefined: Innovating for a Greener Future Kakinada Green Pharmaceutical Zone (GPZ): Granules Partnership With Greenko KAKINADA GPZ with Greenko GRANULES greenko Develop and Promote State- of-the-art Integrated Green Pharmaceutical Zones (GPZ) with first collaboration in Kakinada, Andhra Pradesh greenko Supply of Carbon Free Green Energy and Green Molecules Solutions GRANULES To build a green field facility for large scale manufacturing of KSMs, Intermediates, APIs and fermentation-based products * GRANULES CZRO* Decarbonize Granules' value streams, offering near "Net Zero" Carbon footprint from "Cradle to gate" Value Proposition Backward Integration, Value chain ownership and Supply security Create Innovation and Sustainability driven new growth opportunities Granules CZRO is the wholly owned subsidiary of Granules for Kakinada GPZ initiative 17#18GRANULES CZRO: Frugal Approach to Investment Phase Wise & Stage Gated Investment To be commissioned in a Phase wise and Stage gate manner over the next 5 years. Total Planned Outlay:* 2000 Cr over 5 years Strengthening our Core Business Focus for the first phase is to strengthen our existing Core Business ■ Key intermediates for Metformin and Paracetamol Frugal Approach to Capital Deployment Investment Plan with Optionality Built in Start with pilot scale investment, Post validation/ optimization, move to "at-scale" manufacturing Focus on quick commercialization and move over to the next product FY 24 Capex Outlay for CZRO Planned outlay for FY24 at *250 Cr *100 crore for land and civil works *150 crore for a pilot plant for two KSMs and a commercial plant for one of the KSMs 18#19• • Pharma Pathasala Vocational education & technical skills in pharmaceutical operations to High School youth to ensure employment in any pharmaceutical manufacturing company. Granules India is engaged in : Pharma Pathashala ust Setting up of the infrastructure along with classrooms, laboratories, etc. Developing the course content • Training the trainers • Providing faculty Providing industrial internship for the students Assessing & certifying the students on completion of the course Course Contents : • Enhancing Technical Skills • Basics of pharmaceuticals ited . CGMP . Pharma Analysis • Unit Operations • Communication • Analytical Thinking • Enhancing Soft Skills Time Management Decision Making PCG-MINI anish 19#20Pharma Pathasala X#21FINANCIAL HIGHLIGHTS Rs.45,119 mn of Revenues in FY23 with 20.3% EBITDA margin 12 TIMEX 2#22FY23: Y-o-Y performance highlights - P&L Revenue FY23 FY22 Y-o-Y Gr% 45,119 37,649 20% Value Added 22,046 18,813 17% Value Added % 48.9% 50.0% EBITDA 9,138 7,222 27% EBITDA % 20.3% 19.2% PAT 5,166 4,128 25% PAT % 11.4% 11.0% (In Mn) 22 22#23FY23: Y-o-Y performance highlights - Cashflow and Ratios (In Mn) ROCE% FY23 FY22 21.1% FY23 FY22 FY23 FY22 2.02 Net debt/ EBITDA 0.84x 0.97x Fixed 19.3% 2.06 asset turn ROCE = Annualised EBIT / Average capital employed Capital employed = Equity + Total Borrowings + LT liabilities Cash - Fixed asset turn = Annualised Sales / Average Tangible Gross block CCC Net debt Gross debt - Cash and cash equivalents FY23 FY22 FY23 FY22 FY23 FY22 132 138 Operating Cashflow 7,387 3,321 Capex 4,105 3,967 CCC = DIO + DSO - DPO DIO and DPO are calculated using Material Cost consumed and DSO is calculated using Sales 23 23#24FY23 Revenue spilt by Market and Segments Region wise share 53% 48% 23% 21% 10% 12% 8% 6% 6% 5% Division wise share 30% 26% 22% 20% (In Mn) 50% 52% 5% 3% USA Canada Europe LATAM India ROW API PFI FD FY23% FY22% FY23 % FY22% FY23 FY22 Y-o-Y Gr% FY23 FY22 Y-0-Y Gr% USA 23,780 18,251 30% API 13,414 9,751 Canada 2,099 1,290 63% PFI 9,021 8,456 7% Europe 10,210 7,902 29% FD 22,684 19,442 Set 38% 17% LATAM 3,443 3,811 (10%) India 2,895 4,415 (34%) ROW 2,691 1,979 36% 24 24#25FY23 Revenue spilt by Molecules Paracetamol 46% 38% 22% Metformin Top molecules share 25% 10% Ibuprofen 13% 4%3% Guaifenesin ■FY23 % FY22 % (In Mn) FY23 FY22 Y-0-Y Gr% Paracetamol 20,626 14,282 19% 16% Metformin 9,960 9,410 3%3% Ibuprofen 4,366 4,768 (8%) Methocarbamol Others Guaifenesin 1,616 1,100 Methocarbamol 1,317 1,114 Others 7,233 6,974 2000000 25 25#26Last 5 years historical performance - Sales and profitability Sales: 5yr CAGR: 22% (In Mn) VA and VA%: 5yr CAGR: 23% 45,119 37,649 32,375 25,986 22,792 16,918 22,046 18,463 18,813 51% 47% 45% 13,177 57% 50% 10,236 49% 7,955 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 EBITDA and EBITDA %: 5yr CAGR: 27% PAT and PAT%: 5yr CAGR: 31% 9,138 8,552 20% 26% 7,190 17% 5,253 16% 2,784 3,840 5,495 5,166 13% 17% 4,127 20% 10% 3,354 19% 8% 2,364 11% 11% 1,326 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 26 26#27Last 5 years historical performance - Cashflow and Ratios 13.1% 11.4% ROCE% 17.4% 28.6% Asset turns (In Mn) Net debt and Net debt/EBITDA 8,704 9,082 2.00 1.89 1.98 2.02 2.06 7,671 6,966 21.1% 1.75 19.3% 3.13 2.36 6,058 5,752 1.15 0.97 0.84 0.67 2 2 2 2 2 2 2 2 2 2 2 2 Cash to Cash cycle 138 132 125 114 117 109 -651 FY18 Operating Cash flow 4,762 4,325 3,321 2,622 7,387 Net Debt 4,463 Capex 2,788 1,843 Net Debt/EBITDA 3,967 4,105 2,710 27#28Mr. Puneet Varshney thank you! GRANULES GM, Business Finance and Investor Relations Email: [email protected] www.granulesindia.com Corporate address: Floor 2 Block 3 My Home Hub Madhapur Hyderabad 500081 CIN: L24110TG1991PLC012471 Voice: +91 40 69043600 www.granulesindia.com Ms. Payal Dave σ orient capital Email: [email protected] Mr. Irfan Raeen Mobile+91 9773778669 Email- [email protected] www.orientcap.com