#1January 31st, 2024 ap PAL 50 Pajanta pharma limited Investor Presentation Q3 FY 2024#231st January 2024 Important Disclosure Except for the historical information contained herein, statements in this presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'intend', 'plan', 'contemplate', 'seek to', 'future', 'objective', 'goal', 'likely', 'project', 'on-course', 'should', 'potential', 'pipeline', 'guidance', 'will pursue' 'trend line' and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to Ajanta Pharma's ability to successfully implement its strategy, the Company's growth and expansion plans, obtain regulatory approvals, provisioning policies, technological changes, investment and business income, cash flow projections, exposure to market risks as well as other risks. Ajanta Pharma Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. These materials are not a prospectus, a statement in lieu of a prospectus, an offering circular, an invitation or an advertisement or an offer document under the Indian Companies Act, 2013 together with the rules and regulations made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States or in any other jurisdiction. 2 ajanta#331st January 2024 Contents 7 3 1 Ajanta at a Glance Branded Generic Business 2 India, Asia, Africa - Diversified markets enables growth US Generic Business Selective play & normalized price erosion assists growth Africa Institution Business 4 In-line performance R&D & Manufacturing 5 Strong formulation capabilities 6 Financials Improved margins with better GC & cost optimization Strategy Initiatives Levers for growth Sustainability Initiatives. 8 Committed to sustainable practices 3 ajanta#431st January 2024 Ajanta at a Glance ajanta#531st January 2024 We are present in 30 countries globally 0 USA Generic Generics Africa 20 countries India Branded Generics Rest of Asia 10 countries 09 5 ajanta#631st January 2024 Branded Generics in India & EM is sizeable part of the business US Generics 23% Africa 15% 9M FY 2024 Sales Rs. 3,121 cr. Africa Instn. 6% = EM Emerging Markets Asia 25% India 31% 71% Branded Generics 50% of our products are 1st to Market 500+ Brands across therapeutic segments 4,500+ Medical Representatives globally for promotion of products 6 ajanta#731st January 2024 Market diversification in Branded Generics enables continued growth Metoprolol Succinate Extended Release Tablets USP Met XL 25 alanta Metoprolol Succinate Extended Release Tablets USP Met XL 100 janta Melacare+ Artefan 80/480 Artemether 80 mg and Lumefantrine 480 mg Tes Comprimés d'artmeter 80 mg et de lunefarine 480 mg Artefan so/480 Sitaprit MZD GC Tablet Sitapril M 50/1000) atsalipin & Motormin Hynchbu T1000 20g Langghting Ceam ajanta Plus Melacare+ Skin Lightening and Brightening Cream Rx 20 g 03 ajanta 10 ml Corboxymethylcellulose Sedium and Glerin Eye Drops Sodium de Carboxymethylcellule et Glycin Gutres Pour Softdrops ajante 10 x 10 Tablets Febuxostat Tablets 80 mg Feburic 80 ajanta 3 India Africa Regions Asia Chronic Therapies in focus Cardiac Diabetics Ophthal Derma Pain Leadership In Molecules & Sub- Therapeutic Segments 7 ajanta#831st January 2024 Our Business is well diversified & gives us an edge India Branded Generics Asia Other Business Africa Institutional Africa 4 8 8 Anti Malaria T Segments T Segments T Segments T Segment US Generics 54 Approved ANDAS (includes 2 Tentative) ~50% First to market Leadership In Sub therapeutic segments Leading Brands in segments 1st Generic prequalified by WHO 22 Under Approval ANDAS 300+ Products 200+ Products 200+ Products Note: All data as of Mar-23 unless otherwise specified 1Bn+ Patients Treated 44 Products on shelf 8 ajanta#931st January 2024 India Branded Generic Business Healthy Growth 9 ajanta#1031st January 2024 We have a strong brand franchise in India Sales Contribution (IQVIA MAT Dec 2023) 65% Chronic Sales Pain 9% 12% NLEM Exposure 4 year CAGR (IQVIA MAT Mar 2020-2023) Cardiac Derma Focus on 50%+ 38% 20% 22% 4 1st to market products 19% 19% 16% specialty therapies Ophthal 31% 2,800+ MRS 250,000+ Doctors Covered 33% Ajanta Cardiac Ophthal Derma Pain 10 ajanta#11Our leading brands continue to post healthy growth 11 INR 25+ Cr. Brands 4 year CAGR (IQVIA MAT Mar 2020-2023) 57% contribution from Top 10 brands 13 New launches in 9M FY24 4 1st to market in 9M FY24 13% 18% 5% 8% #1 #1 MET XL Softdrops Source: IQVIA MAT Dec 2023 IPM = Indian Pharmaceutical Market, Source: IQVIA, MAT 17% 13% 12% 11% #2 #2 Feburic Apdrops IPM I APL # Brand Rank in product category 8% 7% #2 Melacare 11 ajanta#1231st January 2024 We continue to outperform industry growth IPM Growth vs. Ajanta Growth Cardiac 10% 6% Dec-23 IPM-Indian Pharmaceutical Market, Source: IQVIA, MAT 20% 15% 11% 10% 5% 13% 8% 4% 18%18% 16% 12% 10% 8% 0% Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Opthal 11% 15% Dec-23 Derma 7% 18% Pain 17% 10% Dec-23 Dec-23 IPM Ajanta Pharma 12 ajanta#1331st January 2024 We have 6th fastest CAGR for last 4 years JB Pharma Dr. Reddy's Eris Ipca Aristo Ajanta Intas Alkem Torrent Micro FDC Cipla USV Sun Pharma Alembic Emcure Cadila Pharma Lupin Glenmark Zydus IPM-Indian Pharmaceutical Market, Source: IQVIA, March MAT 4 Years Sales CAGR in IPM 21% 6th fastest CAGR for last 4 years 18% 15% 14% 14% 13% 13% 13% 12% 11% 11% 11% 11% 10% 10% 10% 9% 9% 8% 33% 13 ajanta#1431st January 2024 Branded Generic Business Asia & Africa Growth continues 14 ajanta#1531st January 2024 We have wide presence in markets & therapies Key Markets Africa, South East Asia, Middle East Asia & Central Asia Leadership In many molecules & sub-therapeutic segments Among Top 10 Players in many markets 15 ajanta#1631st January 2024 We were pioneers for front-end presence in EM 20 New launches in 9M FY 2024 New Focus Strengthening countries of small presence Pipeline Of healthy product registrations Major Therapeutic segments Cardiac Diabetes Ophthal Pain Derma Gastro Anti Histamine Respiratory = EM Emerging Markets 16 ajanta#1731st January 2024 We are optimistic of consistent growth in EM Asia 12% CAGR 957 813 712 673 Revenue (Rs. Cr.) Africa 16% CAGR 587 559 413 349 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 = EM Emerging Markets 4 years Consistent growth both in Asia & Africa 17 ajanta#1831st January 2024 Generic Business USA Selective play assists growth 18 ajanta#1931st January 2024 Our US strategy of selective play pays Revenue (INR Cr.) 17% CAGR 696 637 828 54 ANDA approvals (includes 2 tentative) 44 Products on shelf 516 FY20 FY21 FY22 FY23 4 Launched during 9M FY 2024 (1 more in Q4 FY 2024) 22 Pending approvals 6 ANDA filed in 9M FY 2024, target 6~8 this year 19 ajanta#2031st January 2024 Institution Business Africa In-line performance 20 ajanta#2131st January 2024 Our Institution business is of Anti-Malaria in Africa 244 FY20 Revenue (INR Cr) 271 (8%) CAGR 206 190 FY21 FY22 FY23 1st Generic company to obtain WHO Pre-Qualification Stagnates Due to lower procurement by aid agencies 1 Billion+ Patients treated till date 21 ajanta#2231st January 2024 R&D & Manufacturing Strong Formulation Capabilities 22 ajanta#2331st January 2024 Our R&D continues to provide product innovation R&D Spend (Excluding Capex) (Rs. cr.) 9% 6% 5% 6% 6% 176 164 139 237 204 ■FY 2019 ■FY 2020 FY 2021 FY 2022 ■FY 2023 Q3 FY 2024 - Rs. 52 cr. (Rs. 61 cr.) 9M FY 2024 - Rs. 157 cr. (Rs. 174 cr.) 5% of Revenue • • • Strong Capabilities 800+ Scientists Formulation Development Analytical Development API Development Bio-Analytical Lab Drug Regulatory Affairs • IPR 23 ajanta#2431st January 2024 Our 7 plants are best in class ajanta APPROVED FDA U.S. FOOD & DRUG ADMINISTRATION APPROVED Paithan (Maharashtra) apania Guwahati (Assam) Tablets, Capsules & Powder Tablets, Capsules & Powder Tablets, Capsules, Ointments & Sterile Eye Drops Tablets & Capsules Dahej (Gujarat) Pithampur (Madhya Pradesh) 24 ajanta#2531st January 2024 Financial Highlights Higher margins 25 ajanta#2631st January 2024 Branded Generics Sales Continues to Grow 5% India (Rs. cr.) 308 294 227 28% Asia (Rs. Cr.) 7% Africa (Rs. Cr.) 13% Total (Rs. Cr.) Q3 Consolidated 755 292 155 666 145 ■Q3 FY23 Q3 FY24 Q3 FY23 ■ Q3 FY24 ■ Q3 FY23 ■ Q3 FY24 Q3 FY23 Q3 FY24 28% 27% 14% of Total Revenue of Total Revenue of Total Revenue 69% of Total Revenue ajanta#2731st January 2024 So also Total Sales continues to grow 13% 5% 179% 13% Q3 Consolidated Branded Generics (Rs. Cr.) USA Generics (Rs. Cr.) Africa Institution (Rs. Cr.) Consolidated Sales (Rs. Cr.) 1,09 3 755 266 252 86 964 666 31 Q3 FY23 Q3 FY24 Q3 FY23Q3 FY24 Q3 FY23 Q3 FY24 69% 23% 8% of Total Revenue of Total Revenue of Total Revenue Q3 FY23 Q3 FY24 27 ajanta#2831st January 2024 India takes the lead in Branded Generics Sales 9M 11% India (Rs. cr.) 982 888 719 8% Asia (Rs. Cr.) 776 458 3% Africa (Rs. Cr.) 8% Total Consolidated (Rs. Cr.) 472 2,23 0 2,065 ■9M FY23 ■9M FY24 9M FY23 ■9M FY24 ■9M FY23 ■9M FY24 9M FY23 9M FY24 31% 25% 15% of Total Revenue of Total Revenue of Total Revenue 71% of Total Revenue ajanta#2931st January 2024 US takes the lead for overall growth 8% 11% 33% 10% 9M Consolidated Branded Generics (Rs. Cr.) USA Generics (Rs. Cr.) Africa Institution (Rs. Cr.) 188 2,23 703 2,83 7 Consolidated Sales (Rs. Cr.) 3,12 1 2,06 5 0 631 141 ■9M FY23 ■9M FY24 9M FY23 9M FY24 ■9M FY23 9M FY24 71% of Total Revenue 23% of Total Revenue 6% of Total Revenue 9M FY23 9M FY24 29 ajanta#3031st January 2024 EBITDA @ 28% with consistent efforts (INR Cr) Q3 FY 2023 % to RO Q3 FY 2024 % to RO % Growth Revenue from Operations (RO) 972 1,105 14% COGS (269) 28% (294) 27% Gross Profit 703 72% 811 73% 15% Employee Benefit (192) 20% (231) 21% 20% Other Expenses (340) 35% (266) 24% (22%) EBITDA 170 17% 314 28% 85% Depreciation (33) 3% (34) 3% Finance Cost (3) 0% (3) 0% Other Income 35 4% 14 2% Profit Before Tax 169 17% 291 26% 73% Tax Expense (34) 3% (81) 7% Net Profit 135 14% 210 19% 56% | Other Comprehensive Income 12 1% 3 0% Total Comprehensive Income 147 15% 213 19% 45% Q3 Consolidated 30 ajanta#3131st January 2024 Profitability improves with cost optimization (INR Cr) 9M FY 2023 % to RO 9M FY 2024 % to RO % Growth Revenue from Operations (RO) 2,861 3,155 10% COGS (810) 28% (802) 25% Gross Profit 2,051 72% 2,353 75% 15% Employee Benefit (562) 20% (667) 21% 19% Other Expenses (901) 32% (792) 25% (12%) EBITDA 588 21% 894 28% 52% Depreciation Finance Cost Other Income Profit Before Tax Tax Expense Net Profit (98) 3% (101) 3% (5) 0% (6) 0% 108 4% 49 2% 593 21% 836 26% 41% (127) 4% (223) 7% 466 16% 613 19% 32% 9M Consolidated Other Comprehensive Income 19 1% 8 1% Total Comprehensive Income 485 17% 621 20% 28% 31 ajanta#3231st January 2024 We have track record of consistent growth Revenue (INR Cr.) EBITDA and Margin % PAT and Margin % (INR Cr.) (INR Cr.) 13% CAGR 3,743 26% 35% 28% 21% 28% 18% 23% 21% 16% 19% 3,341 3,155 2,890 2,588 999 929 894 783 713 654 614 588 683 468 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 32 ajanta#3331st January 2024 Our return ratios & cashflows are among best in industry 26% ROCE %(¹) 30% 30% 28% 19% 22% ROE %(2) CFO & Cash Conversion 67% 58% 61% 99% 75% 23% 23% 23% 18% 576 562 457 792 669 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 (INR Cr.) Note: 1. ROCE calculated as EBIT / (Net worth + Lease liability + Deferred tax liability) 2. ROE calculated as Net profit / Average net worth 3. Cash Conversion Ratio calculated as CFO (Cash Flow from Operations) / EBITDA 33 ajanta#34So also Earnings & Pay Out 31st January 2024 (INR) EPS 36 50 55 46 46 49 49 Payout (Dividend & Buyback) & PAT % (INR Cr.) 25% 38% 61% 81% 105% 642 116 251 479 436 Book Value per share (INR) 294 264 252 231 199 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 Bonus issue in April 2022 adjusted in all years for calculation of EPS & Book Value. Payout of 9M FY24 includes 2nd interim dividend declared but yet to be paid. 34 ajanta#3531st January 2024 We continue to improve on working capital front Receivable Days (Nos.) (Nos.) 113 111 95 104 104 71 14 Inventory Days 98 88 80 68 99 Payable Days (Nos.) 105 92 22 70 10 79 19 65 99 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 FY20 FY21 FY22 FY23 9M FY24 35 ajanta#3631st January 2024 Strategy Initiatives Levers for Growth 36 ajanta#3731st January 2024 Strategy in place Continuous new products. launches across all the markets Strong product portfolio under development in R&D Increasing MS in products Focus on field force productivity enhancement Optimize Expenses Focus on costs optimization Thrust on new countries Adding products & field in new countries Focus on digitalization Across all functions of the organization 37 ajanta#3831st January 2024 Sustainability Initiatives 38 ajanta#3931st January 2024 We are committed for sustainability Environment 50% from Solar Energy by FY 2025 Recycle and reuse of Waste Water Quality First Resource efficiency & low-carbon processes Highest quality products with no recalls Zero Tolerance for child labor, forced labor, sexual harassment & discrimination CSR Education, Healthcare & Rural Development for benefit of marginalized & vulnerable 39 ajanta#4031st January 2024 Earning Call Details 40 ajanta#4131st January 2024 Q3 FY24 Earnings Conference Call Earnings Conference Call Dial-in Information Date and Time Dial-in Numbers January 31, 2024 at 1700 1800 hrs IST 1930-2030 hrs SST/HKT 1230 1330 hrs BST 0730 0830 hrs US ET Universal Access Primary Access: +91 22 6280 1542 +91 22 7115 8372 International Toll Free Number USA: 18667462133 UK: 08081011573 Hong Kong: 800964648 Singapore: 8001012045 41 ajanta#4231st January 2024 Thank you For more information please visit our website: www.ajantapharma.com For regular updates follow us on twitter www.twitter.com/ajantapharmaltd For specific queries, contact: Rajeev Agarwal: 022-66061377 [email protected] Abhineet Kumar: 022-66061814 [email protected] Ajanta House, Charkop, Kandivli (W), Mumbai 400 067 CIN No.- L24230MH1979PLC022059 42 ajanta