#1CH CH JUBILANT LIFESCIENCES Jubilant Life Sciences Limited Investor Presentation February 2020#2Disclaimer Important Disclaimer This presentation (the "Presentation", or the "document") has been prepared by Jubilant Life Sciences Limited (the "Company") for the recipient for the purpose of providing information on the Company. The contents of this Presentation are confidential and strictly for use by the recipient only. The Presentation shall not, in whole or in part, be disclosed without prior written consent of the Company. This Presentation must not be copied, reproduced, distributed, or otherwise disclosed or passed on to others, in whole or in part, by any means, in any form under any circumstances whatsoever at any time hereafter. The recipient agrees to keep confidential any information contained herein and any other written or oral information otherwise made available in connection with the Company. In furnishing this document, neither the Company, nor its associates and affiliates, nor any of their respective officers, directors, advisors, undertake any obligation to provide to the recipient (a) access to any additional information or to update this document, or (b) to correct any inaccuracies therein which may or may not become apparent. This Presentation may contain statements about events and expectations that may be "forward-looking", including statements relating to future status, events, prospects or circumstances, including but not limited to statements about plans and objectives, outlook, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward- looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from these forward-looking statements due to number of risks and uncertainties, including future changes or developments in the Company's business, its competitive environment, its ability to implement its strategies and initiatives, respond to industry changes and the political, economic, regulatory and social conditions in India. The Company may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the regulatory bodies and our reports to shareholders. The Company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This Presentation does not constitute a prospectus, offering circular or offering memorandum or an offer invitation or a solicitation of any offer to purchase or sell, any securities of the Company, and should not be considered or construed in any manner whatsoever as a recommendation that any person should subscribe for or purchase any of Company's securities. None of the projections, expectations, estimates or prospects in this Presentation should be construed as a forecast implying any indicative assurance or guarantee of future performance, nor that the assumptions on which such future projections, expectations, estimates, or prospects have been prepared are complete or comprehensive. This Presentation utilizes information which has not been independently verified (including by opinion, anecdote and speculation) and which has been sourced from a variety of public sources and third parties. Neither the Company, nor its associates and affiliates, nor any of their respective officers, directors, advisors, makes any representation or warranty (expressly or impliedly) as to the accuracy, adequacy or completeness of this document or its contents or of any other oral or written information furnished or made available. The Company disclaim to the extent possible by law, all responsibility in relation to this Presentation. This Presentation, is not a recommendation to invest, is not an investment advice, and, is prepared to provide background information for investors in relation to the Company. This Presentation does not purport to contain all information investors may require to evaluate an investment in the Company. In preparing the Presentation, the Company have not taken into account the particular investment objectives, financial situation or particular needs of investors. Before making an investment decision, an investor should independently consider whether an investment in the Company is appropriate in light of its particular investment needs, objectives and financial circumstances. An investor should conduct its own independent investigations, due diligence and analysis of the potential benefits and risks of any investment in the Company. An investor should seek professional advice, including tax advice before making an investment decision. The distribution of this Presentation in or from certain jurisdictions may be restricted or prohibited by law. Recipients are required to inform themselves of, and comply with, all restrictions or prohibitions in such jurisdictions. Neither the Company nor any other person shall have any liability to any person in relation to the distribution or possession of this document or copies thereof in or from any jurisdiction where the distribution of such a document is prohibited or requires special authorisation or any regulatory consent or approval. By accepting this document the recipient has agreed, upon request, to return promptly all material received from the Company without retaining any copies. By accepting this Presentation, the recipient agrees that this Presentation is strictly confidential and shall not be copied, published, distributed or transmitted to any person, in whole or in part, by any means, in any form under any circumstances whatsoever and that the recipient has further agreed, upon request, to return promptly all material received from the Company without retaining any copies. The recipient further represents and warrants that it is lawfully able to receive this Presentation under the laws of the jurisdiction in which it is located and / or any other applicable laws, and that it will not reproduce, publish, disclose, redistribute or transmit this Presentation. NOTES 1. The numbers for the quarter have been reclassified and regrouped wherever necessary 2. Closing Exchange Rate for USD 1 at Rs 71.39 as on Dec 31'19, Rs 69.16 as on March 31'19 and Rs. 69.78 as on Dec 31'18 3. Financial numbers FY 2016 onwards, are as per Indian Accounting Standards (Ind-AS) JUBILANT LIFESCIENCES#3Jubilant Life Sciences Overview ✓ Radiopharma Pharmaceuticals Specialty Pharmaceuticals Allergy Therapy Products CDMO CMO of Sterile Injectables and Non Sterile Products Active Pharmaceutical Ingredients Generics² Solid Dosage Formulations India Branded Pharmaceuticals (IBP) FY19 Revenue Mix by Segment DDDS 2% Life Sciences Chemicals 23% Nutritional Products 5% Specialty Pharmaceuticals 31% Specialty Intermediates 11% CDMO 16% Generics 12% 100% Rs 9,111 Cr Life Science Ingredients Specialty Intermediates DDDS1 Drug Discovery Services (Jubilant Biosys & Jubilant Chemsys) Nutritional Products Life Sciences Chemicals FY19 Revenue Contribution by Region China and ROW 8% Europe & Japan 14% Proprietary Drug Discovery (Jubilant Therapeutics) FY19 EBITDA Mix by Segment DDDS 1.0% India 27% Life Science Ingredients 24% Pharmaceuticals 75% USA & Canada 51% 100% Rs 9,111 Cr 100% Rs 1,835 Cr USD 1.3 billion integrated global pharmaceuticals and life sciences company Strong position in Specialty Pharmaceuticals – Radiopharma and Allergy Therapy Products 6 USFDA approved manufacturing facilities including 4 in North America and 2 in India; 5 state-of-the-art LSI mfg. facilities in India Expertise in chemistry and manufacturing spanning over four decades of experience ➤ Employs around 8,000 people globally, including over 2,200 in North America and more than 500 dedicated to R&D 1. Drug Discovery & Development Solutions 2. IBP business, earlier presented under segment 'Others' has from Q2'FY20 onwards been reclassified under 'Pharmaceuticals' segment within 'Generics' subsegment JUBILANT LIFESCIENCES#4JUBILANT LIFESCIENCES Pharmaceuticals Segment#5Evolution of Jubilant Pharma FY18 US$619m Revenue Contribution(¹) Growth: 22.9% FY19 US$761m CDMO 30.3% 6.8% 16.3 7.0 % % 14.0 % 42.8 % 19.9 % Generics 19.9% 46.4% Specialty Pharmaceuticals 49.9% CDMO 27.6% 14.7% 12.9% 19.2% JLL acquired API business - Nanjangud, Karnataka, India Acquired a majority stake in Cadista Holdings Inc. (generics pharmaceutical company in the US) with a USFDA approved manufacturing facility for solid dosage formulations Acquired Draxis Pharma Inc. in Canada (manufacturer of sterile products, non-sterile products and radiopharmaceuticals) SGX-listed high yield bond offering Completed acquisition of Triad's radiopharmacies in the US FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Generics 19.9% I Specialty Pharmaceuticals 53.2% Acquired Pharmaceutical Services Incorporated Created R&D centre for solid dosage formulations N.V. and PSI Supply N.V. (Belgium) Radiopharma Allergy Therapy Products CMO Active Pharmaceutical Products Solid Dosage Formulations Acquired HollisterStier Laboratories LLC in US (a CMO service provider) Fund raising from IFC through a mix of debt and convertible instruments Acquired balance of minority stake in Cadista Holdings Inc. Consolidation of the pharmaceutical business under JPL Continued Focus on Specialty Pharmaceuticals - Radiopharma and Allergy Therapy Products (1) Revenue from operations include contribution from Radiopharmacies business from the period starting September 1, 2017 JUBILANT PHARMA#6Radiopharmaceuticals Business Industry Overview (1) Business Overview Products Strategy (1) Radiopharmaceuticals Industry in North America is US$2.4bn, expected to grow at CAGR of 6.2% to reach US$3.5bn by 2023 Oncology and cardiology diagnosis accounted for 69.4% of the industry in 2017 Increase of cardiovascular, cancerous and neurological diseases are likely to drive molecular imaging procedures Specializes in cardiology, pulmonology, oncology and endocrinology as well as bone, brain and renal imaging Supplies diagnostic and therapeutic radiopharmaceutical products to 18 countries #3 radiopharmaceutical manufacturer in nuclear medicine industry in the US based on revenue (1) (US$bn) Market Size of Industry in North America CAGR (2013-17): 6.1% CAGR (2017-23): 6.2% 1.9 2.0 2.2 2.3 2.4 2.6 2.7 2.9 3.0 3.2 3.5 2013 2014 2015 2016 2017E 2018F 2019F 2020F 2021F 2022F Customers include 3rd party commercial radiopharmacy networks, our radiopharmacies, hospitals, standalone imaging centers and cardiologists Long-term contracts in place in the US USFDA approved manufacturing facility at Kirkland, Montreal MAA for lung perfusion imaging (Sole supplier with 100% market share (¹)) ➤ DraxImage® DTPA for lung ventilation and renal imaging ( Sole supplier with 100% market share (¹)) HICONⓇ Sodium lodine-131 solution for thyroid disease and thyroid cancer management (Currently the only FDA approved supplier of I-131 (Thyroid) in the market) RUBYⓇ Rubidium Rb-82 Generator and RUBY® Rubidium Elution System (505 (b)(2)products) for myocardial perfusion imaging with PET DraxImage Exametazime (505 (b)(2)product) for intra-abdominal infection and inflammatory bowel disease Planning to file NDA for I-131 mIBG (currently undergoing Phase II and Phase III clinical trials in US) and 505(b)(2) for 7 other products Achieve market leadership in the nuclear medicine industry Increase market share of RUBY-FILL® Generator and RUBY Elution System™M - cardiac PET imaging Leverage leadership position in existing products Expand product portfolio through launch of niche and differentiated products According to Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immuno Therapy Industry and the Global and US Generic Pharmaceutical Industry 2023F Ruby-Fill® (Rubidium Rb82 Generator and Elution system) JUBILANT LIFESCIENCES#7Radiopharmacy Business # 2 commercial radiopharmacy network (1) in the US, operated under the Jubilant Radiopharmacy brand Facilities include three cyclotrons ➤ Multi-year agreements with GPOs in place HINGTON MONTANA NORTH DAKOTA MINNE Ottawa Montreal SOUTH DAKOTA WISCONN MAINE OREGON ICHI Toronto O VT IDAHO WYOMING NP LOWA ch ago NEBRASKA MA CTRI NOIS PL OHIO NEVADA United States INDIAN UTAH COLORADO San Fncisco KANSAS MISSOURI WEST VIRGIN 5Philadelphia DENJ KE CKY WIR TA CALIFO OLas Vegas OKLA MA TEI NA Los A Á Ales ARIZONA San Diego NEW MEXICO De las ARKANSAS MISS INA ° TEXAS Strategy (1) Gulf of Califor LOUISIANA Houston FL Gulf of Jubilant Radiopharmacies Over 50 radiopharmacies spread across 22 states 750+ employees c.3 mn+ doses delivered annually c.1,700 customers across National GPOs, Regional Networks, local hospitals and physician groups Strong relationships with major national GPOs Build the nation's premier centralised radiopharmacy network Optimizing coverage of radiopharmacy network through further additions and improvements or consolidation Upgradation of new sites in progress. Efforts also underway to improve operational efficiencies Establish new distribution channels through collaboration and contractual arrangements with strategic partners Geographic expansion in US and Canada by increasing brand recognition among hospital networks According to Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immuno Therapy Industry and the Global and US Generic Pharmaceutical Industry JUBILANT LIFESCIENCES#8Allergy Therapy Business Allergen Immunotherapy (AIT) Market Size Industry Overview Business Overview Products Global AIT market stands at US$1.8bn and is expected to grow at CAGR of 8.9% to reach US$2.8bn by 2022 Major growth drivers include the increased prevalence of allergic diseases, reduced time to drug approval processes and increased pharmaceutical R&D spending & biotechnology investment Venom immunotherapy is considered effective for the prevention of potential allergic reactions to hymenoptera stings ➤ Jubilant HollisterStier Allergy is the sole supplier for venom immunotherapy in the US (US$bn) 1.4 CAGR 12-17:3.8% CAGR 2017-22: 8.9% 2.6 2.8 1.8 1.7 2.0 2.1 2.3 0.5 0.4 0.4 0.3 0.3 1.4 1.6 1.6 0.2 0.2 0.2 0.2 0.2 0.3 1.2 1.3 1.4 1.5 1.5 1.7 1.8 1.2 5 6 ■Global Ex-US North America 1.9 2.1 2.3 2021F Jubilant has become the number 2 player in the allergenic extract market in the US Offers a range of different allergenic extracts and standard allergy vaccine mixtures as well as insect venom products for the treatment of allergies to insect stings Traditionally focused on North America as the key market, where significant brand loyalty is generated in respect of the "HollisterStier" brand Dedicated sales force in the US and distributors in Europe, Canada and South Korea Products are sold primarily in bulk and then mixed in the office/clinic environment USFDA approved manufacturing facilities at Spokane facility Product range includes 200+ different allergenic extracts, six insect venom products and exclusive skin diagnostic testing devices Currently the sole producer and supplier of venom products for the treatment of allergies in the US ➤ Expect to benefit from barriers to entry as biotechnology products with grandfather status; new products require an NDA Leverage Existing Capabilities Drive growth and profitability through our strong customer commitment to be partner-of-choice in US allergy market Enhance US Footprint & Portfolio Strategy Launch new, differentiated products and expand capacities in particular in venom and extract products Improve existing processes and supply reliability Expand Target Markets & Portfolio Explore adjacencies or vertical integration such as supplier & distribution agreements or diagnostic testing services Entered into partnerships to further deepen the penetration in Canada and Europe 2022F Source: Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immuno Therapy Industry and the Global and US Generic Pharmaceutical Industry JUBILANT LIFESCIENCES#9Contract Manufacturing Business - Sterile Injectables and Non-Sterile Products Industry Overview (Injectables) Injectable market stands at US$5.4bn and is expected to outpace the industry (ex API) by growing at a CAGR of 4.7% between 2017-23F to reach US$7.1bn Growth drivers include consolidation in injectable CDMO space, shortage of injectable drugs, vendor consolidation and technical expertise for sterile injectable drugs (US$bn) 59 Global Pharmaceutical CMO Industry Size CAGR 12-17: 7.7% CAGR 17-23F: 7.9% 63 67 73 79 85 92 100 109 117 125 134 43 46 50 55 60 66 72 79 87 94 102 110 2012 2013 ■API ■ Solid 2018E 2019F 2020F Injectable Other SDFN 2021F 2022F 2023F Business Overview Products Sterile injectables account for c.80% while non-sterile products account for the balance c.20% of CMO revenues Deep and long-term relationships with our top 10 customers at least 10 years of business relationships with 6 of our top 10 customers. Serves 7 out of the top 20 pharmaceutical companies globally based on revenue ➤ Fully integrated contract manufacturer of sterile injectables with in-house R&D capabilities - well positioned to become a leading, cost effective CMO Full suite of services to our customers including supply chain support, lab testing services, regulatory submission support, manufacturing process refinement and project management USFDA approved manufacturing facilities located in Spokane, Washington and Montreal, Canada Sterile Injectables Freeze-dried (lyophilized) injectables, vial and ampoule liquid fills, Biologics, water for injection diluents and Sterile ointment, creams and liquids Currently produce vial ranges from two milliliters to 100 milliliters and batch sizes ranging up to 2,000 litres Capabilities to produce quantities for both large-scale commercial operations as well as for clinical trials Enhance and expand capacity 30% Capacity Expansion through following initiatives ☐ Capacity addition by operating one line 24X7 Strategy effected in Spokane during Q3'FY19. ■ 24x7 shifts on another line from Q3'FY20 ■ New Lyo equipment to increase capacity to be commercialised in Q4'FY20 Achieve operational efficiencies Focus on First Time Right customer service and increase product filling yields Reduce time cycle between product releases Non- sterile Products Semi-solid dosage formulations, including antibiotic ointments, dermatological creams and liquids (syrups and suspensions) Identify new customer targets New customer targets for ampoules, semi-solids and non-sterile liquids Focus on long term high value contracts Product portfolio extension ➤ Finding opportunities to strategically extend our product portfolio Investing in a brand new Ophthalmic space in Montreal Evaluating opportunities for new product launches Source: Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immuno Therapy Industry and the Global and US Generic Pharmaceutical Industry JUBILANT LIFESCIENCES#10API Business Global Market Size: Synthetic API CAGR (2018-22): 6.7% 149 123 131 129 Industry Overview ➤ 53% of outsourced API market is generics (1) Global Synthetic API market is US$115bn in 2018 and is expected to grow at a CAGR of 6.7% from 2018 to 2022F to reach US$149bn (1) 115 62 (US$bn) 48 51 53 46 67 72 78 83 87 2018E 2019F 2020F 2021F 2022F ■Captive Outsourced Business Overview One of the global suppliers with market leadership in select key API products (1) ~80% of commercialized portfolio is in lifestyle driven therapeutic areas such as CVS, CNS, anti-infective and non-communicable diseases ~60% of API sales are to regulated markets Sartans continue to be a key focus area API facility at Nanjangud, Karnataka (USFDA, PMDA Japan, KFDA Korea, COFEPRIS Mexico and Brazil ANVISA certifications) (2) Product Risperidone Products (1) Oxcarbazepine Jubilant Global Market Share(1) c.33% c.30% Carbamazepine Pinaverium 20% 20% Continue to be a preferred supplier to our customers Product Meclizine Citalopram Donepezil Jubilant Global Market Share(1) 20% 18% 16% Strategy Focus on product selection, new product launches and increasing market share of existing products Well differentiated strategy of products and markets, focus on cost optimization supported by highly capable team with a proven track record to drive sustainable growth Increasing the range of products in key markets such as US, Europe and expanding our geographical reach in select Emerging Markets Continue to invest in R&D to build-up product pipeline and capacity expansion at plants (1) Source: Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immuno Therapy Industry and the Global and US Generic Pharmaceutical Industry JUBILANT LIFESCIENCES#11Solid Dosage Formulations Business Industry Overview Global generics pharmaceutical industry stands at US$111bn and is expected to grow at CAGR of 5.2% to reach US$136bn by 2023 ➤ It is estimated that there will be USD72.5 billion worth of small molecule drugs will have patent expiry from 2018-22 Pharmerging market has seen strong growth both in volume (6.2%) and value (4.1%) in the recent past (2011-2016)-driven by preference for branded generics coupled with increase in out-of-pocket spend Business Overview Products #1 player in 4 products with over 45% share in each of the three products ➤ Amongst top 3 players in another 2 products 2012 (US$bn) Global Generics Pharmaceuticals Industry Size by Unbranded Generic Sales(1)(3) CAGR (2012-17): 4.3% CAGR (2017-21):5.2% US Patent Expiry for Small Molecules 90 98 100 102 106 111 117 123 129 136 2016 2017 55 commercialized generic sound dosage formulations products across the US, Europe, Canada, Australia and the rest of the world (2) 98 ANDA filings in the US - of which 36 are pending (2) We are one of the market leaders in select key products in the US(1) Benefit from backward integration into API business supported by in-house R&D facilities Manufacturing facility at Salisbury, US (USFDA) and Roorkee, India (USFDA, UKMHRA, PMDA Japan, ANVISA Brazil and MCC South Africa) Expanded solid dosage formulations capacity at Roorkee facility now operational 2018E 2019F 2020F Strategy Aim is to be the first to enter and last to exit using our chemistry and R&D capabilities and manufacturing expertise to drive growth Focus on investment in R&D in order to increase our ANDA filings and approvals Focus on cost leadership with increased integration of in-house APIs ➤ Expand business into emerging markets by leveraging existing US filings Source: Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immunotherapy Industry and the Global and US Generic Pharmaceutical Industry (1) (3) 23 (2) As of December 31, 2019 Only includes prescription drugs 2021F JUBILANT LIFESCIENCES (US$bn) 2013 2014 14.0 11.1 2015 20.6 2016 14.8 2017 2018 2019 2020 2021 2022 US$ 72.5 bn 129.0 22.8 14.0 12.6 11.7 5.2#12JUBILANT LIFESCIENCES Life Science Ingredients Segment#13Specialty Intermediates & Nutritional Products Industry Overview Global specialty chemicals market is USD 1.1 billion in 2018 and is expected to grow at 5.4% to reach USD 1.2 billion in 2022. Global nutrition market is USD 570 billion in 2018, majorly dominated by Animal Feed Market (80%) Global Market Size ($ Mn) : Speciality Chemicals CAGR (2018-2022): 5.4% Global Market Size (KT): Vitamin B3 CAGR (2018-2022): 2% 1,235 1,112 1,055 60 61 62 62 58 59 2018E 2020F 2022F 2018E 2019F 2020F 2021F 2022F Business Overview Specialty Intermediates business comprises of Advance intermediates with product offerings such as Pyridines, Picolines, Cyanopyridines, Piperidine and their value added derivatives known as Fine Ingredients and Crop Science Ingredients Nutritional products business comprises of Vitamins, Animal Nutrition & Human Nutrition offering Vitamin B3, Vitamin B4 and Specialty Products Economies of scale and extensive backward and forward integration across the pyridine value chain drives cost competitiveness and secure supply chain. Exports accounted for 65% of the business revenue in FY19 ➤ Strong customer base, end-to-end market offerings and market play in growth segments Product offerings service Pharmaceutical, Agrochemical, Personal Care, Healthcare, Nutrition (Human & Animal) & Other Life Science industries Key Product Products Pyridines¹ Vitamin B3² Jubilant Global Market Share 22% 16% Key Product Vitamin B4 (India) Jubilant India Market Share 64% Strategy Leverage integrated value chain to ensure cost advantages and higher margins Capacity expansion through regular debottlenecking & process intensification to meet incremental market demand Drive growth through new product launches thereby expanding product portfolio; Increase in customer alliances to defend market share and internal asset optimization Strategic product expansion to cater wide ranging agro applications; Focus on R&D oriented new products and CDMO for innovators (1) Merchant Sales Share (2) Share of addressable market for Vitamin B3 Source: IMS Database; Trade Datebase, Alltech Feed Survey, Euro Monitor JUBILANT LIFESCIENCES#14Life Science Chemicals Global Acetic Anhydride market is 585 KT in 2018 and is expected to grow at 4.2% to reach 662KT in 2022 Global Market Size (KT): Acetic Anhydride CAGR (2018-2022): 4.2% Global Market Size (KT): Ethyl Acetate Industry Overview Global Ethyl Acetate market is 2046 KT in 2018 and is expected to grow at 2% to reach 2156KT in 2022 662 2156 610 2046 2082 585 2018E 2020F 2022F 2018E 2020F 2022F Dominant player in domestic market for over 3 decades. High share in international market. ➤ Only organized player in domestic market, supplies to all major customers Business Overview Leading producer of Acetic Anhydride and Ethyl Acetate, which have applications in Pharma, Agro, Drugs, Dye sectors Large scale ethanol producer; Ethanol used in Advanced intermediates and Life science chemicals business. One of the largest suppliers of Ethanol to OMCS under GOIs Ethanol Blending Program (EBP) " - ➤ One of the lowest cost manufacturers Strategic location in India's sugarcane belt for cost efficient raw material supply Bagged new annual contract with higher volumes and prices in the EBP of Gol Key Product Products(1) Acetic Anhydride Ethyl Acetate Jubilant Global Market Share(1) Jubilant India Market Share (1) Global Acetic Anhydride (585KT) - 2018E Global Ethyl Acetate (2046KT)-2018E 123 15% 4% 71% 33% 94 ■ Jubilant Share 491 1923 Capacity/Product/ Geographic Expansion Continued capacity investment - New Acetic Anhydride plant commissioning to get completed in Q2'FY20 with annual revenues of over Rs 300 Crore Expansion of exports Strategy Expansion in geographies such as Europe and South East Asia to drive growth in the business Leverage integration and continuous improvement in manufacturing processes to drive cost efficiencies Leverage global sales and distribution network and reliable customer base 1. Source: IHS Market JUBILANT LIFESCIENCES#15JUBILANT LIFESCIENCES Jubilant Life Sciences - Key Strengths & Strategies#16Jubilant Life Sciences Key Strengths 1 Strong Leadership in Key Products and Markets JUBILANT LIFESCIENCES 7 2 Global Competitive Edge Due to Low Cost and Vertical Integration 3 De-risked Business Model With Diverse Sources of Revenue 4 Strong Pipeline of Products with Deep R&D Capabilities 5 High-Quality, World -Class, Low Cost Manufacturing Footprint 6 Experienced Management team with high standards of corporate governance Demonstrated Financial Track Record with Strong Revenue Growth and Attractive Profitability Profile JUBILANT LIFESCIENCES#171 Specialty Pharmaceuticals Leading Market Positions Across Business Lines, with High Barriers To Entry For Specialty Pharmaceuticals Radio pharma Allergy Therapy Products CMO Highlights #3 radiopharmaceuticals manufacturer in the US (1) #2 commercial radiopharmacy network in the US (1) Specialists in lung, thyroid, bone and cardiac imaging products ✓ Sole supplier with 100% market share in the US in MAA and DTPA (1) ✓ Currently the only FDA approved supplier of I-131 (Thyroid) in the market ✓ Received two 505(b)(2) approvals for RUBYFILL® and DraxImage Exametazime #2 player in the allergenic extract market in the US (1) Product range of 200+ different allergenic extracts, six insect venom products and exclusive skin diagnostic testing devices Sole producer and supplier of venom products in the US(1) Serves 7 out of the top 20 pharmaceuticals companies globally based on revenue (1) Deep and long-term relationships with our top 10 customers ✓ At least 10 years of business relationships with 6 of our top 10 customers Entry Barriers Extensive regulatory and licensing requirements Capital intensive nature of the business Vertical Integration with commercial radiopharmacy business Biotechnology products with grandfather status; new products require an NDA Niche US allergen extract market Limited number of manufacturers with the requisite know- how for sterile injectables Proximity to customers Technical expertise required to develop products, obtain licensing and regulatory approvals LSI Generics CDMO APIS Solid Dosage Formulations One of the market leaders in the US for several key API products Oxcarbazepine (global market share at c.30%) Carbamazepine (global market share at c.20%) and others 55 products across the, US, Europe, Canada, Australia and the rest of the world (2) #1 player in 4 products with over 45% share in each of the three products Amongst top 3 players in another 2 products Speciality Intermediates and Global leadership position in Pyridines & derivatives Second largest producer globally in Vitamin B3 Leader in 11 fine ingredients products Nutritional Products Life Science Chemicals Globally top 4 in Acetic Anhydride (Merchant Sales) Globally #7 in Ethyl Acetate (1) According to Frost & Sullivan - Independent Market Research on the Radiopharmaceutical Industry, US Radiopharmacy Chain, US Contract Manufacturing Organisation Industry, US Allergy Immuno Therapy Industry and the Global and US Generic Pharmaceutical Industry; (2) As of June 30, 2019 JUBILANT PHARMA#182 Global Competitive Edge Due to Low Cost and Vertical Integration Vertical integration across the value chain enables cost competitive advantage resulting in higher margins Integrated Operations... Life Sciences Ingredients Radiopharmacies Provides direct access to hospital networks - ability to deliver c.3mn+ patient doses annually to c.1,700 customers Animal & Speciality Ingredients Vitamins Human Nutrition Forward integration Radiopharmaceuticals Specialty Intermediates and Nutritional Products Pyridine Beta L Radiopharmaceuticals and Allergy All cold-kits for radiopharmaceuticals and allergy products are manufactured at CMO facility CMO Formulations APIs from the manufacturing facility are used for solid dosage formulations (35% of APIs used are in-house) APIS Methanol Formal dehyde Acetal dehyde Ammonia Backward integration Ethanol Life Sciences Chemicals Molasses Ethyl Acetate Acetic Anhydride Specialty gases Acetic Acid Procured Captive Sales Merchant Sales JUBILANT LIFESCIENCES#193 De-risked Business Model With Diverse Sources of Revenue Presence in niche Specialty businesses that have high barriers to entry Diverse end-use industry segmentation in Life Science Ingredients with focus on Pharmaceutical and Agrochemical industries Presence across geographic locations enables the company to capture different market segments Diverse Segments FY19 Revenue Split¹ DDDS 2% Life Sciences Chemicals Specialty Pharmaceuticals 31% I 23% Nutritional Products 5% Specialty Intermediates 11% Generics 12% CDMO 16% Diverse revenue base with substantial revenue contribution from Specialty Pharma, CDMO, Generics, Life Science Chemicals and Specialty Intermediates and Nutritional Products businesses 100% Rs 9,111 Cr Diverse Products Broad Customer Base Broad Geographical Base FY19 Revenue Split FY19 Revenue Split Rest of the Products 59% Top 10 Products | 41% I Rest of the Customers 80% Top 10 products account for 41% of FY19 Revenue FY19 Revenue Split Top 10 Customers 20% China and ROW 8% Europe & Japan 14% India 27% USA & Canada 51% Diversified customer base with top 10 customers accounting for only 20% of the revenue Broad geographic base with North America and India being the major markets JUBILANT 1. IBP business, earlier presented under segment 'Others' has from Q2'FY20 onwards been reclassified under 'Pharmaceuticals' segment within 'Generics' subsegment PHARMA#20Life Science Ingredients (1) As on Sep 30, 2019 Pharmaceuticals 4 Strong Pipeline of Products With Deep R&D Capabilities ▸ Strong R&D capabilities demonstrated by complex and niche product filings including 505(b)(2) in radiopharma ▸ Strong R&D support with a dedicated workforce of more than 500 R&D professionals. Over 852 patents filed till FY19 Strong pipeline of 8 products in the Radiopharmaceuticals business including I-131 mIBG with market size of over USD 300 million 44 commercial APIs, 96 US DMFS filed¹ Pharmaceuticals R&D Spending (Rs Cr.) Product pipeline as on Sep 30, 2019 Dosage (Orals) Steriles 261 260 244 Region Total 217 Approval Pending Filings Total Filings Approval Pending US 96 61 35 15 13 2 Canada 23 23 0 17 16 1 Europe 36 33 3 4 4 0 FY 16 FY17 FY18 FY19 ROW 41 36 5 9 9 0 Broad product portfolio of ~90 products driven by R&D capabilities and Chemistry expertise ▸ Strong R&D led product pipeline of over 30 products, planned to be launched over the next 3-5 years ▸ Expertise in a large number of chemical processes; highly equipped laboratories with advanced equipments and analytical facilities Over 70 scientists in the LSI business 4 R&D centers - Gajraula, Noida, Ambernath & Bharuch 147 patents filed till FY19 Life Science Ingredients (LSI) – Product Pipeline / New Launches # Till March 31, 2018 55 Total New Launches FY19 6 61 Specialty Intermediates Nutritional 22 1 23 Products Life Science Chemicals 7 0 7 Total 84 7 91 JUBILANT LIFESCIENCES#215 High-Quality, World-Class, Low Cost Manufacturing Footprint Spokane, Washington, USA Contract manufacturing of Sterile injectable and Allergy therapy FDA Salisbury, Maryland, USA Solid Dosage Formulations (Tablets & Capsules) FDA Last Inspection Facility Montreal, May, 2018 CMO Montreal, Sep, 2017 Radiopharma Salisbury May, 2018 Spokane July, 2019 Roorkee Nov, 2019 Nanjangud Dec, 2018 Samlaya, Gujarat Animal Nutrition Products Bharuch, Gujarat SEZ for Vitamins and Specialty Intermediates Noida Corporate Office Roorkee, Uttarakhand Generics manufacturing FDA MHRA Gajraula, Uttar Pradesh Largest integrated facility of Specialty Intermediates and Life Science Chemicals Montreal, Canada Radiopharmaceuticals Contract Manufacturing of Sterile Injectables and non- Sterile Products FDA Ambarnath, Maharashtra Specialty Intermediates Nira, Maharashtra Life Sciences Chemicals Nanjangud, Karnataka API manufacturing afssaps Pmda FDA 独立行政法人 |医薬品医療機器総合機構 Pharmaceuticals and Medical Devices Agency Pharmaceuticals Manufacturing Facilities Life Science Manufacturing Facilities 4 USFDA approved manufacturing facilities in North America and 2 USFDA approved manufacturing facilities in India. 5 state-of-the-art Life Science Ingredients manufacturing facilities in India JUBILANT LIFESCIENCES#226 Experienced Management team with high standards of corporate governance R Sankaraiah Executive Director - Finance 33 years Exp. Pharmaceuticals Shyam S Bhartia Chairman 39 industry years in pharma, specialty chemicals, foods, oil and gas, aerospace and IT Pramod Yadav, CEO - Jubilant Pharma 29 years of Industry Experience Alok Vaish CFO Designate 26 years Exp. Life Sciences Ingredients Hari S Bhartia Co-Chairman & Managing Director 33 industry years in pharma, specialty chemicals, foods, oil and gas, aerospace and IT Rajesh Srivastava, CEO - Life Sciences Ingredients 29 years of Industry Experience Ajay Khanna Chief - Strategic & Public Affairs 37 years Exp. Drug Discovery & Development Solutions Marcel J Velterop, President - Drug Discovery Solutions 28 years of Industry Experience Shareholding Structure Others 4.5% Jubilant Vision ✓ To acquire and maintain global leadership position in chosen areas of businesses ✓ To continuously create new opportunities for growth in our strategic businesses ✓ To be among the top 10 most admired companies to work for To continuously achieve a return on capital of at least 10 points higher than the cost of capital NRI and Indian Public 14.7% Financial Institutions / MFs / Banks 2.7% Foreign Institutional Investors 27.4% Promoter 50.7% As of 31st December 2019 JUBILANT LIFESCIENCES#231. Rs. Crs 7 Rs.Crs Revenue increased at a CAGR of 12% over FY15-19 and EBITDA increased at a CAGR of 25% over the same period Demonstrated Financial Track Record with Strong Revenue Growth and Attractive Profitability Profile Revenue from Operations¹ ● Total Revenue 5,826 5,893 5,861 7,518 9,111 6,763 Reported EBITDA² EBITDA Split¹ 732 1,291 1,370 1,558 1,775 1,438 CAGR Reported EBITDA : 25% 18 18 26 445 39 2 632 434 313 433 176 3,545 176 123 -126 182 3,328 2,356 3,144 2,882 2,576 322 1,372 892 975 1,127 977 445 Revenue CAGR: 12% FY 15 FY16 FY17 FY18 .217 Rs. Crs 5,349 4,013 4,231 2,559 2,885 3,104 FY 15 FY16 FY17 FY18 FY19 9MFY20 -1 FY19 9MFY20 Margins Pharma FY 15 FY 16 Pharma FY17 ■LSI ■DDDS FY 18 FY19 9M'FY20 LSI Reported 17.4% 30.9% 10.2% 15.0% 12.6% 21.9% 31.4% 24.3% 25.7% 26.6% 23.4% 16.8% 19.0% 20.7% 12.6% 13.3% 19.5% 21.3% PAT ■Pharma LSI DDDS EPS 25.1 36.9 41.3 36.9 40.0 Net Debt to EBITDA² 3.3 643 638 2.7 576 574 2.1 431 1.9 1.7 FY16 FY17 FY18 FY19 9M'FY20 Pharma Revenue and EBITDA includes India Branded Pharmaceuticals 2. Reported EBITDA is after Corporate Expenses 23 FY16 FY17 FY18 FY19 9M'FY20 Reported EBITDA up 14% YoY to Rs 1775 Crore. Adjusted EBITDA after one-time expenses at Rs 1,932 Crore up 17% YoY Increase in revenue and EBITDA attributable to increasing share of high margin Pharmaceuticals segment Pharma margins at 26% in FY19 and 24% in FY18 including Radiopharmacies and IBP Specialty Pharmaceuticals margin at 27.6% in FY19 as against 36.7% in FY18 CDMO margin at 31.4% in FY19 vs. 24.4% in FY18 Generics margin at 12% in FY19 vs. -6% in FY18 (including IBP) PAT at Rs 574 Crore in FY19 vs Rs 643 Crore in FY18. Normalised PAT³ at Rs 855 Crore as compared to Rs 714 Crore in FY18 Net Debt/EBITDA down to 1.9x as on 31 Mar 2019 from 3.3x as on March 31, 2016 Normalised PAT is before exceptional items of stock settlement charge of Rs 280 Cr on IFC convertible loan due to one time settlement in FY 19 and one time product development amortization charge of Rs 91 Cr in FY18 3.3x.a JUBILANT LIFESCIENCES#24Growth Strategies and Plans 1 Continue to strengthen leadership positions in key business segments JUBILANT LIFESCIENCES 2 Radiopharma: Achieve market leadership by leveraging leadership in existing products and broad distribution network along with expansion of our product portfolio through launch of niche and differentiated products Allergy: Continue to drive growth and profitability through our strong customer commitment to be the partner-of-choice in the US allergy market and leveraging the strong brand recognition of the "HollisterStier" brand CMO: Strengthen industry position through "first time right" customer service and identifying new customer targets for ampoules, semi-solids and non-sterile liquids APIs: Focused on product selection and cost optimization, to continue to be a preferred supplier to our customers Formulations: Focus on cost leadership with increased integration in our portfolio mix and of in-house APIs and continue to expand our business into emerging markets by leveraging our existing US filings. ■ Life Science Chemicals Acetyls: Expand our market share globally of Acetic Anhydride by expanding capacities and maximize Ethyl Acetate profitability through customer and market prioritization Ethanol: Expand our presence and market share of Ethanol to OMCs in domestic market Specialty Intermediates Retain top 2 global position in Pyridine & Picolines business " New products development and launch to improve ROCE of FI & CSI business ◉ Expand CDMO business offering products from cGMP facilities to global Pharma Innovator customers Nutritional Products Retain top 2 global position in Vitamin B3 with focus on feed, human nutrition and personal care industries; Expand Niacin business also Expand & Retain ledership position in Vit B4 (Choline Chloride) in domestic market. Expand Animal and Human Nutrition product portfolio Be closer to the customer to provide high quality products and services Current Platform: Approximately 70% of our assets are in North America which account for 80% total revenue from operations (Pharma Segment) ➤ Targets: Leverage the insights gained from successfully bringing products in North American market to launch products in other markets JUBILANT LIFESCIENCES#25Growth Strategies and Plans 3 JUBILANT LIFESCIENCES 5 4 Develop a diverse product and service portfolio through differentiated and complex offerings ➤ Specialty Pharmaceuticals Focus: Develop differentiated products in the radiopharmaceuticals and specialty injectables segments catering to the North American market CDMO Focus: Focus on driving growth through capacity expansion in CMO business and new filings in the API business Generics Focus: Focus on developing complex products with limited competition and to file products that can be integrated with our in-house API manufacturing Life Science Chemicals Focus: Expand to new chemistry platform of Diketene, Capacity enhancement of Acetic Anhydride and expand customer base in global markets ➤ Specialty Intermediates Focus: Focus on developing new products using existing assets, Expand customer base for CDMO and establish agro active business Nutritional Products Focus - Productivity & Profitability improvement, Expansion into new segments like encapsulated products and develop food ingredients portfolio Offer an integrated business model that provides products and services which are cost-effective Cost Competitive API Manufacturing: Continue to increase share of solid dosage formulations manufactured with in-house APIs Vertical Integration: Leverage network of radiopharmacies to distribute radiopharmaceutical products Operational Efficiency: Leveraging capabilities across an expanded revenue base thereby gaining scale in operations Cost Competitive Manufacturing in LSI: Continue to increase share of chemicals manufactured Leverage vertical Integration in LSI: Leverage integration from basic feed-stock to drive growth Operational Efficiency in LSI: Leveraging capabilities across an expanded revenue base thereby gaining scale in operations Continue to pursue strategic acquisitions to further consolidate leadership positions and accelerate growth Potential Future Acquisition Areas: Radiopharmacy sales and distribution network in the US and Canada Manufacturing capacity and capabilities to further strengthen the radiopharmaceutical portfolio focused on the North American market Manufacturing sites in India to support Dosage and API businesses JUBILANT LIFESCIENCES#26Q3 & 9M'FY20 Results Analysis JUBILANT LIFESCIENCES#27Chairmen's Message JUBILANT Q3'FY20 PERFORMANCE Revenue at Rs. 2,315 Crore lower by 3% YoY; EBITDA at Rs 513 Crore lower by 2% YoY and higher by 7% QoQ Commenting on the Company's performance, Mr. Shyam S Bhartia, Chairman and Mr. Hari S Bhartia, Co-Chairman & Managing Director, Jubilant Life Sciences Ltd. said: "We reported stable performance YoY and growth in EBITDA with better margins sequentially and PAT was lower due to certain exceptional charges. Demand conditions across all Pharma businesses, Specialty Intermediates and Nutritional Products are strong. Overall we are confident of delivering strong performance going forward. Pharmaceutical segment reported steady revenue growth during the quarter. We witnessed healthy growth in Allergy Therapy Products and API businesses with stable performance in Radiopharma, CMO and Generics. EBITDA at Rs 411 Crore was up 6% YoY and 7% QoQ with margin of 28.4%, an improvement of 112 bps YoY and 180 bps QoQ. Adjusted EBITDA of Pharmaceutical segment at Rs 414 Crore was 8% higher YoY with a margin of 28.6%. LSI segment revenue at Rs 797 Crore was lower 11% YoY but up 6% QoQ led by growth in Specialty Intermediates and Nutritional Products. Life Science Chemicals business' revenue at Rs 381 Crore was down 30% YoY due to lower input prices of Acetic Acid. LSI EBITDA at Rs 100 Crore was down 21% YoY but up 10% sequentially with margins of 12.6%. The Drug Discovery Services business reported robust growth of 26% YoY in revenue and a ~2.7x increase in EBITDA with margin of 25% during the quarter. In view of the strong demand, we are making significant investments in this business to double capacities over the next 2-3 years. In our Proprietary Drug Discovery business we are working on more than six programs targeting small molecule therapies in the area of oncology and auto-immune disorders with potential to fast track promising assets from discovery to clinical stage." JUBILANT LIFESCIENCES#28Update on Reorganization Proposal Post the board approval on Oct 25, 2019 for reorganizing the businesses of the Company, the Company has filed with BSE Limited and National Stock Exchange of India Limited the Composite Scheme of Arrangement for amalgamation of certain promoter controlled entities into the Company and Demerger of the Life Science Ingredients business into the Resulting entity which shall be listed on both the stock exchanges with a mirror shareholding of the Company Upon receipt of no objection certificate from the stock exchanges, the composite scheme shall be filed with National Company Law Tribunal, Allahabad Bench No impact has been considered in the financial results of the Company on account of the Composite Scheme JUBILANT LIFESCIENCES#29Q3'FY20 Results Analysis JUBILANT LIFESCIENCES#30JLL - Q3'FY20 Financial Highlights Particulars¹ Revenue Pharmaceuticals² Q3'FY19 Q3'FY20 YOY Change (%) ■ Revenue at Rs 2,315 Crore, a decrease of 3% YoY and an increase of 2% QoQ Pharmaceuticals revenue at Rs 1,450 Crore, an increase of 2% YoY, contributing 63% to revenue • LSI revenue at Rs 797 Crore decreased by 11% YoY and increased by 6% QoQ Drug Discovery & Development Solutions (DDDS) ³ revenue was at Rs 68 Crore, an increase of 26% YoY and 12% QoQ Reported EBITDA at Rs 513 Crore decreased 2% YoY but increased 7% sequentially. EBITDA margin at 22.2% vs. 22% in Q3'FY19 and 21.2% in Q2'FY20 1,424 1,450 Life Science Ingredients 899 797 Drug Discovery & Development Solutions³ 54 Total Revenue from Operations 2,377 68 2,315 2% (11%) 26% (3%) • EBITDA Pharmaceuticals² 388 411 6% Life Science Ingredients 126 100 (21%) Drug Discovery & Development Solutions 5 17 270% Unallocated Corporate Expenses 4 (15) Reported EBITDA 522 513 (2%) Adjusted EBITDA 518 516 (0%) 15 35 261 203 (22%) 16.7 12.8 (24%) EBITDA Margins Pharmaceuticals 27.2% 28.4% Life Science Ingredients 14.0% 12.6% Drug Discovery & Development Solutions 8.6% 25.4% Reported EBITDA 22.0% 22.2% Adjusted EBITDA 21.8% 22.3% Exceptional Items PAT EPS Geography Wise Revenue¹ 636 517 1,240 1,296 Pharmaceuticals EBITDA at Rs 411 Crore an increase of 6% YoY with a margin of 28.4% as compared to 27.2% in Q3'FY19 LSI EBITDA at Rs 100 Crore decreased by 21% YoY and increased by 10% QoQ; Q3'FY20 margin at 12.6% as compared to 14% in Q3'FY19 and 12.1% in Q2'FY20 DDDS EBITDA at Rs 17 Crore increased from Rs 5 Crore in Q3'FY19; Q3'FY20 margin at 25.4% an increase from 8.6% in Q3'FY19 ○ Drug Discovery Services EBITDA was at Rs 21 Crore up from Rs 5 Crore in Q3'FY19 with margins of 31.1% In Q3'FY19 there was a forex gain of Rs 25 Crore on account of restatement of deposits vs. nil in this quarter ■ Adjusted EBITDA after one-off expenses at Rs 516 Crore vs. Rs 518 Crore in Q3'FY19. Adjusted EBITDA margin for the quarter is 22.3% vs. 21.8% in Q3'FY19 ☐ Finance costs at Rs 72 Crore vs. Rs 53 Crore in Q3'FY19 and Rs 72 Crore in Q2'FY20 Exceptional charge of Rs 23 Crore related to prepayment of high yield bonds and NCDs and Rs 11 Crore related to write-off of fixed assets not in use. Q3'FY19 charge of 15 Crore is related to IFC Stock settlement charge 329 297 173 206 ◉ Net Profit at Rs 203 Crore down 22% YoY and 18% QoQ. EPS of Rs 12.8 vs. Rs 16.7 in Q3'FY19 Capex in Q3'FY20 of Rs 111 Crore India North America ■Q3'FY19 Europe & Japan ROW ■Q3'FY20 1. All figures are in Rs Crore unless otherwise stated 2. Pharmaceuticals segment includes India Branded Pharmaceuticals business under the Generics segment 3. Drug Discovery & Development Solutions include the Drug Discovery Services (Jubilant Biosys & Jubilant Chemsys) business and Proprietary Drug Discovery business (Jubilant BILANT Therapeutics) LIFESCIENCES#31Pharmaceuticals Segment Highlights - Q3'FY20 (1/2) Particulars¹ Revenue Specialty Pharma CDMO Q3'FY19 Q3'FY20 % Change ■ Pharmaceuticals revenue at Rs 1,450 Crore, an increase of 2% YoY. 1,424 1,450 2% ■ 757 764 1% 374 393 5% Generics 293 293 0% Reported EBITDA 388 411 6% • Adjusted EBITDA 383 414 8% Reported EBITDA Margin (%) 27.2% 28.4% · Adjusted EBITDA Margin (%) 26.9% 28.6% Specialty Pharma and CDMO segments increased by 1% YoY and 5% YoY, respectively. Generics revenue was flat YoY Specialty Pharmaceuticals² (53% of Pharma Revenues) • CDMO³ Steady performance in Radiopharma business continues, led by higher volumes in key products like Ruby-FillⓇ Received favorable ruling from U.S. International Trade Commission in Ruby-Fill® Allergy business witnessed revenue growth both YoY and QoQ led by higher volumes in venom and allergenic extracts 43 40 Geography Wise Revenue¹ 1,151 1,196 136 120 94 94 India North America Europe & Japan ROW Q3'FY19 ■Q3'FY20 1. All figures are in Rs Crore unless otherwise stated 2. Specialty Pharmaceuticals comprises Radiopharma and Allergy Therapy Products businesses 3. Contract Development and Manufacturing (CDMO) business comprises CMO and API businesses • • • • Steady performance witnessed in CMO business; robust outlook due to strong order book and new deals Initiatives taken to increase total capacity by over 30% with annual potential revenues of around USD 30 million O Increased shifts to 24x7 on Line 2 from Q3'FY19 and on line 1 from Q3'FY20 onwards New Lyo equipment installed at line 2 at the Spokane facility with commercialisation expected during Q4'FY20 In API, revenue growth witnessed on account of higher volumes and better prices Company working diligently with the US FDA and Health Canada, regarding the resolution of the Official Action Indicated (OAI) in Nanjangud JUBILANT LIFESCIENCES#32Pharmaceuticals Segment Highlights - Q3'FY20 (2/2) Facility USFDA Inspection Details Last Inspection Generics¹ Montreal, CMO May, 2018 Montreal, Radiopharma Sep, 2017 Salisbury May, 2018 • Spokane July, 2019 Roorkee Nov, 2019 Nanjangud Dec, 2018 Product Pipeline as on Dec 31, 2019 Dosage (Orals) (#) . Revenue was flat YoY and down 2% QoQ primarily due to lower volumes in some key products due to customer scheduling Better pricing in certain products due to favourable market conditions Received ANDA approval for Clomipramine HCL Capsule from Salisbury facility during the quarter Roorkee WL Remediation process progressing well in consultation with 3rd party consultants to address US FDA observations. ■ Pharmaceuticals EBITDA at Rs 411 Crore increased by 6% YoY and 7% QoQ with a margin of 28.4% as compared to 27.2% in Q3'FY19 and 26.6% in Q2'FY20. Better margins in Specialty pharmaceuticals and Generics businesses during the quarter ■ Pharmaceuticals adjusted EBITDA at Rs 414 Crore increased by 8% YoY with a margin of 28.6% as compared to 26.9% in Q3'FY19 Filings Approved Pending . US 98 62 36 Canada 23 23 0 Europe 37 33 4 ROW 41 36 5 Steriles (#) Filings Approved Pending US 15 13 2 Canada 17 16 1 Europe 4 4 0 ROW 9 9 0 One-off expenses of Rs 3 Crore related to site remediation and litigation expenses R&D spent during the quarter of Rs. 72 Crore - 5% to segment sales. R&D debited to P&L is Rs. 55 Crore - 3.8% to segment sales 1. Generics business refers to the company's solid dosage formulations business and the India Branded Pharmaceuticals business JUBILANT LIFESCIENCES#33LSI Segment Highlights - Q3'FY20 Particulars¹ Q3'FY19 Q3'FY20 % Change 899 797 (11%) 252 293 16% 106 124 17% 541 381 (30%) 126 100 (21%) 14.0% 12.6% Revenue Specialty Intermediates Nutritional Products Life Science Chemicals Reported EBITDA Reported EBITDA Margin (%) Revenue Breakup by End-Use Industries 28% 27% 24% 23% 16% 13% 34% 33% 1% 1% Pharma Agro Nutrition Personal Specialty Care Chemicals Q3'FY19 Q3'FY20 592 477 Geography Wise Revenue¹ 178 163 50 48 79 110 India North America Europe & Japan ROW Q3'FY19 Q3'FY20 1. All figures are in Rs Crore unless otherwise stated LSI revenue at Rs 797 Crore, decreased by 11% YoY and increased by 6% QoQ. Strong growth witnessed in Specialty Intermediates and Nutritional Products amid lower revenue in Life Science Chemicals Specialty Intermediates . Revenue increased by 16% YoY led by strong demand and better prices in key products such as Pyridine, Beta and Pyridine derivatives Positive traction for new pyridine derivatives launched in last year Ministry of Commerce (MOFCOM) China terminated the 17.6% anti-dumping duty on imported pyridine during the quarter Nutritional Products Revenue increased by 17% YoY led by better prices of Vitamin B3 Demand scenario is expected to be strong in Q4 FY'20 Life Science Chemicals . Revenue decreased by 30% YoY due to similar drop in input prices of Acetic Acid, which led to price correction of Life sciences chemicals products Demand for Acetic Anhydride remained subdued during the quarter EBITDA at Rs 100 Crore decreased by 21% YoY and increased by 10% QoQ with margin of 12.6% as compared to 14% in Q3'FY19 . Strong growth in profitability in Specialty Intermediates and Nutritional Products businesses LSC profitability impacted due to significantly higher molasses prices and lower contribution in acetyl business due to subdued demand in export market LIFESCIENCES#34Drug Discovery & Development Solutions - Q3'FY20 Revenue Particulars¹ Q3'FY19 Q3'FY20 % Change 54 68 26% Drug Discovery Services 54 68 26% Proprietary Drug Discovery 0 0 Reported EBITDA 17 270% Drug Discovery Services 5 21 353% Proprietary Drug Discovery 0 (4) Reported EBITDA Margin (%) Drug Discovery Services 8.6% 25.4% 8.6% 31.1% Geography Wise Revenue¹ 42 52 39 ■ Drug Discovery & Development Solutions (DDDS) comprises . • Drug Discovery Services business through Jubilant Biosys Limited & Jubilant Chemsys Limited provides innovation and collaborative research through two world class research centers in Noida and Bangalore in India Proprietary Drug Discovery business through Jubilant Therapeutics, a semi-virtual biopharma company, with a business model of targeting small molecule therapies in the area of oncology and auto-immune disorders ■ DDDS revenue increased by 26% YoY to Rs 68 Crore led by growth in Drug Discovery Services business • 15 14 • 01 01 India Q3'FY19 North America Europe & Japan ■Q3'FY20 ROW • Drug Discovery Services business grew by 26% driven by higher demand from Biotech companies for Integrated Services, DMPK, Chemistry & Scale-up Proprietary Drug Discovery business currently has more than six programs at different stages with potential to partner and/or fast track from discovery to clinical stage Revenue from North America increased by 34% YoY. 1. All figures are in Rs Crore unless otherwise stated ■ EBITDA at Rs 17 Crore with margin of 25.4% • Drug Discovery Services EBITDA increased to Rs 21 Crore from Rs 5 Crore in Q3'FY19. Margin improvement to 31.1% from 8.6% in Q3'FY19 JUBILANT LIFESCIENCES#35Proprietary Drug Discovery (Jubilant Therapeutics) ■ Jubilant Therapeutics is a patient-focused biopharmaceutical company working to address unmet medical needs in oncology and autoimmune diseases. Our advanced discovery engine integrates structure-based design and computational architecture to discover and develop novel, precision therapeutics against both first-in-class and validated but intractable targets in genetically defined patient populations. We strive for speed and efficiency by employing a business model that leverages the proven and synergistic capabilities of Jubilant Life Sciences' value chain and shared services. Jubilant Therapeutics is headquartered in the U.S. and comprised of a team of passionate, pioneering scientists. www.jubilantTx.com Status of Proprietary Programs Programs Indication Pathway Current status Stage/remarks Current pipeline MEGFR mutations NSCLC and other kinase tumors Lead LSD1/HDAC6 hematological optimization Epigenetics Pre-clinical Addresses unmet need of patients developing resistance to kinase inhibitors. Lead optimization in FY20 and ready for partnering. -Dual Inhibitor malignancies and solid tumors PDL-1 Multiple cancers Immuno- Lead oncology PAD4 Inflammation, auto immune disorder Epigenetics Lead PRMT5 Lymphoma, GBM Epigenetics Lead selection optimisation optimisation Novel dual first in class epigenetic inhibitors of LSD1/HDAC6 to address unmet needs in liquid cancers like acute myeloid leukaemia (AML) and select solid tumors. Pre-IND studies including CMC initiated to enable potential Phase I clinical trial in FY21. Small molecule therapy with comparable efficacy to large molecules with potentially better safety profiles in initial studies. Further optimization and characterization of lead molecule expected to be completed in FY20. Potential to address unmet needs in multiple auto-immune disorders like rheumatoid arthritis, psoriasis and atopic dermatitis. Demonstrated efficacy in various auto immune-disorders in animal models. Preclinical candidate selection and IND enabling studies expected in FY21. Lead selection and pharmacology studies underway for further development in FY21 Partnered programs BRD4 Liquid and solid tumours Epigenetics Preclinical Partnered with Checkpoint Therapeutics in 2016 at lead stage with milestones. Toxicology studies done. Pending partner decision for further studies towards clinic. JUBILANT LIFESCIENCES#369M'FY20 Results Analysis JUBILANT LIFESCIENCES#37JLL - 9M'FY20 Financial Highlights Revenue Pharmaceuticals² EBITDA Particulars¹ 9M'FY19 9M'FY20 • YOY ■ Revenue at Rs 6,763 Crore, increase of 1% from Rs 6,725 Crore in 9M'FY19 Change (%) Pharmaceuticals revenue at Rs 4,231 Crore, increased by 7% YoY, contributing 62% to revenue ■ • 3,943 4,231 7% Life Science Ingredients 2,633 2,356 (11%) . Drug Discovery & Development Solutions³ 149 176 18% Total Revenue from Operations 6,725 6,763 1% Pharmaceuticals² 1,087 1,127 4% Life Science Ingredients 344 313 (9%) Drug Discovery & Development Solutions 19 39 108% Unallocated Corporate Expenses (27) (40) . Reported EBITDA 1,423 1,438 1% Adjusted EBITDA 1,432 1,512 6% 45 35 674 638 43.2 40.0 (5%) (7%) Exceptional Items PAT EPS EBITDA Margins Pharmaceuticals 27.6% 26.6% Life Science Ingredients 13.1% 13.3% Drug Discovery & Development Solutions 12.5% 22.0% Reported EBITDA 21.2% 21.3% Adjusted EBITDA 21.3% 22.4% Geography Wise Revenue 1,859,537 3,447 3,765 895 849 525 613 India North America Europe & Japan ROW 9M'FY19 19M'FY20 LSI revenue at Rs 2,356 Crore decreased 11% YoY, contributing 35% to revenue Drug Discovery & Development Solutions (DDDS) revenue at Rs 176 Crore, an increase of 18% YoY Reported EBITDA flat at Rs 1,438 Crore as compared to Rs 1,423 Crore in 9M'FY19. EBITDA margin at 21.3% against 21.2% in 9M'FY19 • • Pharmaceuticals EBITDA at Rs 1,127 Crore a 4% increase YoY with a margin of 26.6% as compared to 27.6% in 9M'FY19 LSI EBITDA at Rs 313 Crore as compared to Rs 344 Crore in 9M'FY19; 9M'FY20 margin at 13.3% as compared to 13.1% in 9M'FY19 DDDS EBITDA at Rs 39 Crore up from Rs 19 Crore in 9M'FY19; 9M'FY20 margin at 22% as compared with 12.5% in 9M'FY19 ■ Adjusted EBITDA after one-off expenses at Rs 1,512 Crore vs. Rs 1,432 Crore in 9M'FY19, growth of 6% YoY. Adjusted EBITDA margin in 9M was 22.4% vs. 21.3% in 9M'FY19 ■ Finance costs at Rs 216 Crore as compared to Rs 158 Crore in 9M'FY19. Exceptional charge of Rs 23 Crore related to prepayment of high yield bonds and NCDs and Rs 11 Crore related to write-off of fixed assets not in use. 9M'FY19 charge of 45 Crore is related to IFC Stock settlement charge ■ Net Profit at Rs 638 Crore down 5% YoY. EPS of Rs 40.0 vs. Rs 43.2 in 9M'FY19 ◉ Capex in 9M'FY20 of Rs 428 Crore ■ Net debt lower by Rs 217 Crore during 9M'FY20 1. All figures are in Rs Crore unless otherwise stated 123 2. 3. Pharmaceuticals segment includes India Branded Pharmaceuticals business under the Generics segment Drug Discovery & Development Solutions include the Drug Discovery Services (Biosys & Chemsys) business and Proprietary Drug Discovery business (Jubilant Therapeutics) JUBILANT LIFESCIENCES#38Adjusted Earnings Rs Crore Consol EBITDA % Change % Change S. No. Particulars Q3'FY19 Q3'FY20 YOY 9M'FY19 9M'FY20 YoY 1 Reported EBITDA 522 513 (2%) 1,423 1,438 1% 2 One-off Adjustments (5) 3 8 74 3 Adjusted EBITDA 518 516 (0%) 1,432 45 Reported EBITDA Margin 22.0% 22.2% Adjusted EBITDA Margin 21.8% 22.3% 1,512 21.2% 21.3% 21.3% 6% 22.4% One-off Expenses S. No. Particulars Q3'FY19 Q3'FY20 9M'FY19 9M'FY20 1 Site remediation 0 5 0 17 Non-supply penalties due to Roorkee Warning 2 Letter 0 (5) 3 Litigation Expense 21 45 Exchange fluctuation on restatement of deposits Donation (25) 0 Total One-Off Expenses (5) 800 5300m 0 13 34 22 (25) 14 9 74 JUBILANT LIFESCIENCES#39Particulars¹ 3,943 2,134 Pharmaceuticals Segment Highlights - 9M'FY20 Revenue Specialty Pharma Geography Wise Revenue¹ 3,211 3,495 9M'FY19 9M'FY20 % Change 4,231 7% 2,233 5% CDMO 1,024 1,148 12% Generics Reported EBITDA Adjusted EBITDA 786 850 8% 98 106 378 341 256 289 1,087 1,127 4% India 1,095 1,192 9% North America Europe & Japan ROW Reported EBITDA Margin (%) Adjusted EBITDA Margin (%) 27.6% 26.6% 9M'FY19 9M'FY20 27.8% 28.2% ■ Pharmaceuticals revenue at Rs 4,231 Crore, increased 7% YoY • Growth in all key revenue segments with 5% growth in Specialty Pharma, 12% growth in CDMO and 8% growth in Generics Revenue from North America and ROW grew 9% YoY and 13% YoY, respectively, while that from Europe & Japan was lower by 10% YoY Specialty Pharma (53% of Pharma revenue) • CDMO Revenue increased 5% YoY to Rs 2,233 Crore Radiopharma revenue increased due to higher volumes in Ruby-Fill® and other key products Revenue growth witnessed in Allergy business led by higher volumes in venom and allergenic extracts and better prices • Revenue increased 12% YoY to Rs 1,148 Crore • Growth in CMO business led by strong demand witnessed from key customers, which was reflected by higher volumes as compared to 9M'FY19 API Revenue growth was due to better pricing in products like valsartan as compared to 9M'FY19 Generics Business witnessed lower volumes due to additional quality checks on all input raw materials to meet enhanced regulatory requirements Revenue growth of 8% YoY due to better prices in some products which was offset by lower volumes ■ Pharmaceuticals EBITDA at Rs 1,127 Crore up 4% YoY with a margin of 26.6% as compared to 27.6% in 9M'FY19. ■ Pharmaceuticals Adjusted EBITDA at Rs 1,192 Crore increased 9% YoY with a margin of 28.2% as compared to 27.8% in 9M'FY19 • One-off expenses of Rs 65 Crore related to related to site remediation, litigation expenses and penalties on non-supply R&D spent during 9M at Rs. 186 Crore - 4.4% to segment sales. R&D debited to P&L is Rs. 157 Crore - 3.7% to segment sales 1. All figures are in Rs Crore unless otherwise stated LIFESCIENCES#40LSI Segment Highlights - 9M'FY20 Revenue Particulars¹ Specialty Intermediates Nutritional Products Life Science Chemicals Reported EBITDA Adjusted EBITDA Reported EBITDA Margin (%) Adjusted EBITDA Margin (%) LSI revenue at Rs 2,356 Crore, decrease of 11% YoY Specialty Intermediates 9M'FY19 9M'FY20 % Change ☐ 2,633 2,356 (11%) 683 831 22% 302 373 24% 1,648 1,151 (30%) 344 313 (9%) 344 321 (7%) 13.1% 13.3% 13.1% 13.6% Revenue Breakup by End-Use Industries 28% 27% 24% 22% 16% 13% 1% 1% 36% 33% Revenue increase of 22% YoY led by strong demand and better prices in key products such as Pyridine, Beta and Pyridine derivatives Positive traction for pyridine derivatives launched in last one year Nutritional Products • Revenue increase of 24% YoY led by better prices of Vitamin B3 Demand scenario is expected to be strong in Q4 FY'20 Life Science Chemicals ☐ Pharma Agro Nutrition Personal Specialty Care Chemicals • 9M'FY19 9M'FY20 1,758 1,429 Geography Wise Revenue¹ ☐ Revenue decreased 30% YoY due to significant drop in Acetic Acid price, which led to price correction of Life sciences chemicals products. EBITDA at Rs 313 Crore decreased by 9% YoY with margin of 13.3% as compared to 13.1% in 9M'FY19. Strong growth in profitability in Specialty Intermediates and Nutritional Products businesses LSC profitability impacted due to significantly higher molasses prices and lower contribution in acetyl business due to subdued demand in export market Adjusted EBITDA at Rs 321 Crore, with a margin of 13.6% as compared to 13.1% in 9M'FY19 481 467 264 320 129 139 India North America Europe & ROW Japan 9M'FY19 ■9M'FY20 1. All figures are in Rs Crore unless otherwise stated JUBILANT LIFESCIENCES#41Drug Discovery & Development Solutions - 9M'FY20 Particulars¹ 9M'FY19 9M'FY20 % Change Revenue 149 176 18% Drug Discovery Services 149 176 18% Proprietary Drug Discovery 0 0 Reported EBITDA 19 39 108% Drug Discovery Services 19 50 168% • Proprietary Drug Discovery 0 (11) Reported EBITDA Margin (%) Drug Discovery Services 12.5% 22.0% 12.5% 28.3% Geography Wise Revenue¹ 131 106 36 40 3 2 4 4 India North America Europe & Japan ROW 9M'FY19 ■9M'FY20 1. All figures are in Rs Crore unless otherwise stated ■ DDDS segment revenue increased 18% YoY to Rs 176 Crore led by growth in Drug Discovery Services business, which was driven by higher demand from Biotech companies for Integrated Services, DMPK, Chemistry & Scale-up. Revenue from North America increased by 24% YoY ■ EBITDA at Rs 39 Crore a YoY increase of 108% Drug Discovery Services EBITDA increased to Rs 50 Crore up 168% YoY. Margin improvement to 28.3% from 12.5% in 9M'FY19 JUBILANT LIFESCIENCES#42Debt Profile Particulars 31/03/19 30/09/19 Foreign Currency Loans ($ Mn) ($ Mn) Subsidiaries 500 Total 500 500 Rupee Loans Standalone Subsidiaries 30/12/19 ($ Mn) 400 500 400 (Rs. Crs) (Rs. Crs) (Rs. Crs) 1,156 1,341 61 1,402 1,029 21 1,050 37 Total 1,193 Gross Debt (Rs. Crs) (Rs. Crs) (Rs. Crs) Standalone 1,341 1,029 1,156 Subsidiaries Total QoQ Change Cumulative Change 3,519 3,565 2,893 4,860 4,594 4,048 (8) (546) (266) (812) Cash & Equivalent 1,370 1,363 687 Net Debt (before Fx Adjustment) 3,490 3,231 3,362 QoQ Change (56) 131 Change in debt on account of Fx rate (86) (89) difference from 31-March, 2019 Net Debt (On a Constant Currency Basis) 3,490 3,145 3,273 QoQ Change (149) 128 Cumulative Change (345) (217) Closing Exchange Rate (USD/Rs.) 69.16 70.88 71.39 ■ Partial early redemption of USD 100 million of high yield bonds issued by Jubilant Pharma Limited due in 2021 at a redemption price of 102.4375% along with accrued interest during the quarter ■ Early Redemption of Non-Convertible Debentures of Rs 745 Crore in January 2020 ■ Net Debt reduction of Rs 217 Crore in 9M'FY20 as compared to March 31, 2019 and increase of Rs 128 Crore in Q3'FY20 Average blended interest rate for 9M'FY20 @ 6.08%; INR loans @ 8.21% and USD loans @ 5.34% ☐ JLIFES LIFESCIENCES#43Appendix JUBILANT LIFESCIENCES#44Income Statement - Q3 & 9M'FY20 Particulars¹ Q3'FY19 Q3'FY20 YoY Growth 9M'FY19 9M'FY20 YoY Growth FY'19 Total Revenue from Operations 2,377 2,315 (3%) 6725 6,763 1% 9,111 Pharmaceuticals 1,424 1,450 2% 3943 4,231 7% 5,349 Life Science Ingredients 899 797 (11%) 2633 2,356 (11%) 3,545 Drug Discovery & Development Solutions 54 68 26% 149 176 18% 217 Total Expenditure 1,884 1,819 (3%) 5344 5,364 0% 7,372 Other Income 29 6 42 28 36 Segment EBITDA 519 528 2% 1450 1,478 2% 1,835 Pharmaceuticals 388 411 6% 1087 1,127 4% 1,372 Life Science Ingredients 126 100 (21%) 344 313 (9%) 445 Drug Discovery & Development Solutions 5 17 270% 19 39 108% 18 Corporate (Expenses)/Income 4 (15) (27) (40) (60) Reported EBITDA 522 513 (2%) 1423 1,438 1% 1,775 Depreciation and Amortization 98 113 15% 276 333 21% 371 Finance Cost 53 72 36% 158 216 37% 220 Profit before Tax 371 328 (12%) 989 889 (10%) 1,184 Exceptional Items (15) (35) (45) (35) (280) Profit before Tax (After Exceptional Items) 356 293 (18%) 944 855 (9%) 904 Tax Expenses (Net) 88 90 2% 266 217 (19%) 327 Minority Interest 7 0 4 0 3 PAT 261 203 (22%) 674 638 (5%) 574 Earnings Per Share - Face Value Re. 1 (Rs.) 16.7 12.8 43.2 40.0 36.9 Segment EBITDA Margins 21.8% 22.8% 21.6% 21.9% 20.1% Pharmaceuticals 27.2% 28.4% 27.6% 26.6% 25.7% Life Science Ingredients 14.0% 12.6% 13.1% 13.3% 12.6% Drug Discovery & Development Solutions 8.6% 25.4% 12.5% 22.0% 8.3% Reported EBITDA Margin 22.0% 22.2% 21.2% 21.3% 19.5% Net Margin 11.0% 8.8% 10.0% 9.4% 6.3% In Q3'FY20 and 9M'FY20 Exceptional charge of Rs 23.3 Crore was related to prepayment of high yield bonds and NCDs and Rs 11.3 Crore related to asset write-off. Q3'FY19 and 9M'FY19 charge of 15 Crore and Rs 45 Crore, respectively, was due to IFC Stock settlement charge 1. All figures are in Rs Crore unless otherwise stated 2. Pharmaceuticals segment includes India Branded Pharmaceuticals business JUBILANT LIFESCIENCES#45Corporate Actions For Investors: Ravi Agrawal / Vineet Mayer Jubilant Life Sciences Limited Ph: +91 120 436 1002/ 1021 E-mail: [email protected] [email protected] For Media: Sudhakar Safaya Jubilant Life Sciences Limited Ph: +91 120 436 1034 E-mail: [email protected] Siddharth Rangnekar CDR India Ph: +91 22 6645 1209 E-mail: [email protected] Gaurav Kashyap Perfect Relations Ph: +91 9871298413 E-mail: [email protected] JUBILANT LIFESCIENCES