#1ALKEM LABORATORIES LIMITED Investor Presentation Q3FY22 February 4, 2022 ALKEM#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. 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, unless it is required by Law. O e ALKEM#3· Key Highlights of Q3FY22 and 9MFY22 • Revenue from Operations grew by 13.0% YoY during the quarter, with EBITDA margin at 19.0% and Net Profit growth of 16.6% YoY India Business: Company's secondary sales in Q3FY22 registered growth of 16.0% YoY compared to IPM growth of 10.4% YoY (Source: IQVIA data) Strong volume led growth in the acute therapies partially helped by COVID-19 • Faster than market growth in chronic therapies during 9MFY22 • Trade Generic business continues to deliver robust growth despite the high base of last year • Recently launched Pulmocare division (in respiratory segment) saw encouraging response with higher than market growth rate US Business - Continue to face pricing pressure on the base business, partially being mitigated by new product launches R&D expenses in the quarter was 1.4 billion at 5.5% of revenue from operations The Company filed 1 ANDAs with the US FDA and received 6 approvals (including 1 tentative approvals) in Q3FY22 Healthy Balance Sheet with net cash of 14.9 billion as on December 31, 2021 O e ALKEM#4Key Financial Highlights - Q3 FY22 (Consolidated) All figures in mn Revenue from Operations 23,181 YoY: 13.0% 26,190 Q3FY21 Q3FY22 India sales 15,140 YOY: 19.9% 18,156 Q3FY21 Q3FY22 International sales 7,738 YoY: (0.4)% 7,709 Q3FY21 Q3FY22 e ALKEM#5Key Financial Highlights - Q3 FY22 (Consolidated) Gross Profit and Gross Margin 14,304 YoY: 13.4% 16,223 All figures in mn EBITDA and EBITDA Margin 5,291 YoY:(5.8)% 4,985 61.7% Q3FY21 61.9% 22.8% Q3FY22 Q3FY21 19.0% Q3FY22 PBT (before Minority Interest) PAT (after Minority Interest) 5,434 YoY: (14.6)% YoY: 16.6% 5,257 4,510 4,639 Q3FY21 Q3FY22 Q3FY21 Q3FY22 e ALKEM#6Key Financial Highlights 9MFY22 (Consolidated) - All figures in mn Particulars (mn) 9 MFY22 9 MFY21 YoY growth Revenue from Operations 81,503 66,729 22.1% Gross Profit 50,014 41,174 21.5% Gross Profit margin 61.4% 61.7% EBITDA 17,157 16,513 3.9% EBITDA margin 21.1% 24.7% PBT 16,016 15,839 1.1% PBT margin 19.7% 23.7% PAT (After Minority Interest) 15,380 13,450 14.3% PAT margin 18.9% 20.2% EPS (*/share) 128.64 112.49 14.3% e ALKEM#7India Business India Business: Q3FY22 Sales of 18,156 million (19.9% YoY growth) • India sales contributed 70.2% to total sales in Q3FY22 . . • In 9MFY22, the Company's secondary sales grew by 31.7% YoY compared to IPM growth of 21.1% YoY (Source: IQVIA data) Growth was mainly led by acute therapies like anti-infectives, vitamins / minerals / nutrients, gastrointestinal and pain management segment helped by COVID-19 tailwinds During 9MFY22, the Company also outperformed IPM in the chronic therapies like neuro / CNS, cardiac, anti-diabetes and derma Company's Trade Generic business delivered a robust growth during the quarter and nine months, despite the high base of last financial year Q3 FY22 - India Sales (mn) 9MFY22 - India Sales (mn) 15,140 YOY: 19.9% 18,156 42,264 YoY: 34.5% 56,858 Q3FY21 Q3FY22 9M FY21 9MFY22 O e ALKEM#8Acute Therapies Chronic Therapies O Secondary Sales Performance Robust growth across all the major therapeutic segments in 9MFY22 Market rank 3 40.0% 41.5% 33.8% 25.9% 21.3% 24.4% 20.3% 19.0% Anti-infectives Gastro-intestinal Pain/ Analgesics Vitamins/Minerals / Nutrients Alkem sales growth YoY1,2 Indian pharma industry sales growth YoY1,2 +2 18 Market rank 29.6% 8.0% Anti-diabetic Alkem sales growth YoY1,2 8 27 27.7% 12.3% 12.0% 11.5% Neuro/ CNS Source: IQVIQ data 1 Domestic formulations sales; 2 For 9 months ended December 31, 2021 Cardiac Indian pharma industry sales growth YoY1,2 32.0% 18 Derma 12.1% O e ALKEM#9. O • US Business US Business: Q3FY22 Sales of 5,731 million (YoY decline of 6.9%) US sales contributed 22.2% to total sales in Q3FY22 YoY decline was mainly on account of significant pricing pressure on the base business which was partially offset by new product launches In 9MFY22, the Company filed 9 ANDAs with the US FDA and received 18 approvals (including 3 tentative approvals) As on December 31, 2021, the Company has filed a total of 160 ANDAs (including 2 NDAs) with the US FDA and has received 124 approvals (including 15 tentative approvals and 2 NDAs) Q3FY22 US Sales (mn) - 6,156 YoY: (6.9)% 5,731 9MFY 22 - US Sales (mn) 19,078 YoY: (6.3)% 17,871 Q3FY21 Q3FY22 9MFY21 9MFY22 e ALKEM#10US Business Update on US FDA inspections Last inspection Status post last inspection Manufacturing Facility Capability Bioequivalence Taloja (India) July 2021 Centre Formulations June 2021 Successfully closed inspection without any observations Received 2 observations. Already sent a detail response to the US FDA on the corrective and preventive actions being taken St. Louis (US) Baddi (India) Formulations February 2020 EIR# received in March 2020 Daman (India) Formulations August 2019 EIR# received in October 2019 California (US) APIs August 2018 EIR# received in October 2018 Ankleshwar (India) APIs December 2016 EIR# received in March 2017 Mandva (India) APIs September 2015 EIR# received in March 2016 O e ALKEM#11Other International Business Other International Business: Q3FY22 Sales of ₹1,978 million (25.0% YoY growth) • Other International Market sales contributed 7.6% to total sales in Q3FY22 • • The Company has presence in Australia, Europe, South East Asia, Latin America, Africa and CIS Key markets like Australia, Chile, Philippines and Kazakhstan registered healthy growth during Q3FY22 and 9MFY22 Q3FY 22 Other International Sales (mn) 1,582 YoY: 25.0% 1,978 9MFY22 Other International Sales 4,303 (mn) YoY: 34.6% 5,793 Q3FY21 Q3FY22 9MFY21 9MFY22 O e ALKEM#12O Latest Shareholding Pattern Shareholding pattern as on December 31, 2021 Non-Institution, 23.53% Promoter & Promoter Group, 57.13% Institution, 19.34% Institution - Mutual Funds, Alternate Investment Funds, Foreign Portfolio Investors, Financial Institutions / Banks Non-Institution - Public, Other Bodies Corporates, Clearing Members, Non Resident Indians, Hindu Undivided Family and Trusts O e ALKEM#13Thank You For further information or queries, please contact Gagan Borana Investor Relations Tel: +91 22 3982 9960 E-mail: [email protected] O e ALKEM