#1op ajanta pharma limited INVESTOR PRESENTATION Q2 FY 2023 3rd November 2022 Safe Harbor Statement This presentation may include certain 'forward looking statements', based on current expectations, forecasts and assumptions within the meaning of applicable laws and regulations. They are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. The Company disclaims any obligation to revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. This material is used during oral presentation; it is not a complete record of the discussion. ajanta 2 of 37 1#2Deloitte. presents "Best Managed Company" Award to ap ajanta pharma INDIA BEST MANAGED COMPANIES 14th Oct, 2022 BEST IAGED CPANIES Deloitte Private Contents 1 2 3 4 NR India Business Global Business Infrastructure Financial Highlights CNC 4 of 37 3 of 37 ajanta ajanta 2#3Ajanta's Strength Smart Product Portfolio & Robust Execution R Smart & Beautiful Product Portfolio 50% + 1st to Market Products Leaders in various molecules & therapeutic Segments Robust Supply Chain ensures product availability every single day Branded Generic - Asia 26% Diversified Revenue Streams H1 FY 2023 Africa Inst. 6% Branded Generic - Africa 17% Generics - USA 19% Branded Generics (India & Emerging Markets) Contribute Branded Generics - India 32% 75% of Revenue ajanta 5 of 37 ajanta 6 of 37 3#415 Divisions ACS 2002 1 India Business India Branded Generic Business ACS 2022 2,800+ 300+ MRs 4 Segments Building Efficiency Product Basket ajanta 7 of 37 ajanta 8 of 37#5India Branded Generic Business Focus on 4 Therapeutic Segments ajanta Cardiology Ophthalmology Dermatology Pain Management Growth continues 2nd largest in India Outperforming IPM Gained 2 ranks India - Higher than Industry Growth 25% IPM-Indian Pharmaceutical Market Source: Iqvia, September MAT 2022 20% 15% 14% 10% 7% 6% 5% 90 10% 15% 14% 3% 20% 19% 13% Pharma Market Cardiology Ophthalmology Dermatology Pain Management IPM Ajanta Pharma 9 of 37 ajanta 10 of 37 5#6IPM Indian Pharmaceutical Market Source: Iqvia, MAT 400 300 200 100 Q2 India Sales Q2 (Rs. Cr.) 27% 248 20% Consistently Exceeding IPM Growth 15% 16% 10% 5% 11% 11% 13% 0% Mar-19 Mar-20 314 Q2 FY22 Q2 FY23 4% 8% Mar-21 ■IPM Ajanta Pharma India Sales IQVIA Sep. MAT 2022 Derma 20% Pain 8% Cardio 41% Opthal 31% 18% 18% 7% Gwth 2X of the market 14% Mar-22 Sep-22 700 H1 India Sales-H1 (Rs. cr.) 24% 600 500 477 400 IQVIA Sep. MAT 2021 300 Pain 8% Derma 21% Cardio 200 43% 100 Opthal 29% H1 FY22 593 ■H1 FY23 ajanta 11 of 37 ajanta 12 of 37 6#7India Ranking Therapies March 2013 September 2022 Ophthalmology 5th 2nd Cardiology 28th 17th Dermatology 15th 14th Pain Management NA 28th Ajanta 45th 27th 2 Global Business pon Jumped 1 Rank from June 2022 ajanta 13 of 37 ajanta 14 of 37 7#8USA Global Presence Africa 19 countries India Rest of Asia 10 countries Branded Generic - Emerging Markets 200+ Leadership Products in many molecules ajanta 15 of 37 ajanta Cardiology Anti-Diabetic Ophthalmology Dermatology Anti-Malaria Antibiotics Pain Gastro Anti-Histamines Gynecology Respiratory 16 of 37 ∞#9USA 43 21 ~10-12 39 Approvals (1 each of Final & Tentative in H1 FY 2023) Under Approval Filing Target (3 filed in H1 FY 2023) Products on Shelf ■ Price erosion, no new approvals & launches impacted H1. ■ Dahej USFDA inspection completed successfully. 300 Export Sales - Q2 (Consolidated) Asia Branded (Rs. cr.) 31% 300 251 Total Exports (Rs. Cr.) 191 200 1% 700 1001 611 615 600 500 400 300 200 100 Q2 FY22 ■Q2 FY23 Africa Branded (Rs. cr.) 300 (8%) USA Generics (Rs. Cr.) (5%) 300 Africa Institution (Rs. cr.) 194 185 (50%) 200 200 200 159 146 100 ■Q2 FY22 Q2 FY23 Sales Q2 FY22 100 Q2 FY22 ■Q2 FY23 Sales Q2 FY23 USA 32% USA 30% Africa Institution Africa Institution 11% Asia Branded Africa Branded 24% 31% Africa Branded 25% Q2 FY22 ■Q2 FY23 Asia Branded 41% 100 66 33 Q2 FY22 Q2 FY23 ajanta 17 of 37 ajanta 18 of 37 9#10600 Export Sales - H1 (Consolidated) Asia Branded Africa Branded (Rs. cr.) USA Generics (Rs. Cr.) 10% 1% 400 400 362 364 314 284 300 (Rs. cr.) 38% 400 492 400 357 Total Exports 500 (Rs. cr.) 14% 300 1,400 1,280 200 1,200 1,123 100 1,000 800 600 400 200 H1 FY22 H1 FY22 H1 FY23 200 100 H1 FY22 H1 FY23 Sales H1 FY22 300 200 100 H1 FY22 ■H1 FY23 Sales H1 FY23 USA 32% Africa Institution 11% Africa Institution 9% USA 28% Asia Branded Africa Branded 32% 25% Africa Branded Asia Branded 25% H1 FY23 38% Total Consolidated Sales - Q2 8% 1,000 929 859 1% 750 611 615 27% 500 314 248 250 Africa Institution (Rs. cr.) 300 (8%) 200 120 110 100 H1 FY22 ■H1 FY23 Rs. cr. Q2 Q2 Gwth FY 2022 FY 2023 India 248 314 27% Exports 611 615 1% Total Sales 859 929 8% 0 India Exports Total Sales Q2 FY22 Q2 FY23 ajanta 19 of 37 ajanta 20 of 37 10 10#11Total Consolidated Sales - H1 17% 2,000 1,750 1,873 Rs. cr. 14% 1,600 1,500 H1 H1 1,280 Gwth FY 2022 FY 2023 1,250 1,123 24% 1,000 India 477 593 24% 750 593 477 Exports 1,123 1,280 14% 500 250 Total Sales 1,600 1,873 17% 0 India Exports Total Sales H1 FY22 H1 FY23 3 Infrastructure ajanta 21 of 37 ajanta 22 of 37 11#12Research & Development R&D Spend (Excluding Capex) (Rs. cr.) 9% 9% 6% 5% 6% 185 176 164 139 204 FY 2018 FY 2019 FY 2020 FY 2021 ■FY 2022 Q2 FY 2023 Rs. 59 cr. (6%) Q2 FY 2022 Rs. 49 cr. (6%) H1 FY 2023 Rs. 113 cr. (6%) H1 FY 2022 Rs. 94 cr. (6%) Formulation Manufacturing 3 facilities at Aurangabad, Maharashtra 1 facility at Dahej, Gujarat 1 facility at Guwahati, Assam 1 facility at Pithampur, Madhya Pradesh Manufacturing API Manufacturing ACG-am " 1 facility at Waluj, Aurangabad, Maharashtra (Captive Consumption) ajanta Ajanta Research Centre, Mumbai Ajanta Manufacturing Facility-Paithan, Aurangabad ajanta 23 of 37 ajanta Capsule Filling Machine Packing Machine 24 of 37 12#134 Financial Highlights 20 2014 2015 80,760 Detailed P&L - Q2 FY 2023 (Consolidated) Rs. Cr. Q2 FY 2022 % to RO Q2 FY 2023 % to RO Revenue from Operations (RO) 885 938 Other Income 29 3% 40 4% Total Income 914 978 Materials consumed 232 26% 260 28% Employee Benefit 160 18% 186 20% Finance Cost Depreciation Other Expenses 0 0% 1 0% 32 4% 33 3% 230 26% 295 31% Total Expenses 654 74% 775 82% Profit Before Tax 260 29% 203 22% Tax Expense 64 7% 46 5% Net Profit 196 22% 157 17% Other Comprehensive Income (4) 0% 2 0% Total Comprehensive Income 192 22% 159 17% EBITDA 263 30% 196 21% ajanta 25 of 37 ajanta 26 of 37 13#14Exports Domestic P&L Synopsis - Q2 FY 2023 (Consolidated) Rs. Cr. Q2 FY 2022 % to RO Q2 FY 2023 % to RO % Growth 615 66% 1% 611 69% 248 28% 314 33% 27% 26 3% 9 1% (66%) Other Op. Income Revenue from Operations (RO) 885 EBITDA PBT 938 6% 263 30% 196 21% (25%) 260 29% 203 22% (22%) PAT 196 22% 157 17% (20%) Total Comprehensive Income 192 22% 159 17% (18%) Detailed P&L - H1 FY 2023 (Consolidated) H1 FY 2022 % to RO H1 FY 2023 Rs. Cr. % to RO Revenue from Operations (RO) Other Income Total Income Materials consumed Employee Benefit Finance Cost Depreciation Other Expenses 1,633 62 4% 1,889 73 4% 1,695 1,962 404 25% 540 29% 318 19% 369 19% 2 0% 2 0% 62 4% 64 3% 428 26% 562 30% Total Expenses 1,214 74% 1,537 81% Profit Before Tax 481 30% 425 23% Tax Expense 111 7% 94 5% Net Profit 370 23% 331 18% Other Comprehensive Income (7) 1% 7 0% Total Comprehensive Income 363 22% 338 18% EBITDA 483 30% 418 22% ajanta 27 of 37 ajanta 28 of 37 14#15Exports Domestic P&L Synopsis - H1 FY 2023 (Consolidated) Rs. Cr. H1 FY 2022 % to RO H1 FY 2023 % to RO % Growth 1,123 69% 1,280 68% 14% 477 29% 593 31% 24% Other Op. Income 33 Revenue from Operations (RO) 1,633 EBITDA 1% (51%) 16 16 26 2% 16 1,889 16% 483 30% 418 22% (13%) PBT 481 30% 425 23% (12%) PAT 370 23% 331 18% (11%) Total Comprehensive Income 363 22% 338 18% (7%) Balance Sheet (Consolidated) Rs. Cr. Statement of Assets & Liabilities ASSETS Non-Current Assets Property, Plant and Equipment FY 2022 H1 FY 2023 1,442 1,414 Capital Work-in-Progress 153 182 Right for use assets 70 74 Other non-current assets 126 130 Sub-total Non-current assets 1,791 44% 1,800 40% Current Assets Inventories Trade Receivables Bank Balance incld. Investments 791 88 days 749 73 days 1,020 113 days 1,180 115 days 334 615 120 104 Other Current Assets Sub-total Current Assets 2,265 56% 2,648 60% TOTAL ASSETS 4,056 4,448 ajanta 29 of 37 ajanta 30 of 37 15#164,000 3,500 3,000 2,500 €2,076 2,000 1,500 1,000 500 Balance Sheet (Consolidated) Rs. Cr. Statement of Assets & Liabilities FY 2022 H1 FY 2023 EQUITY AND LIABILITIES Equity Equity Share Capital 17 26 Other Equity 3,247 3,578 Sub Total Shareholders' Funds 3,264 80% 3,604 81% Non-current Liabilities Non-current Liabilities 144 144 Sub Total Non-Current Liab. 144 4% 144 3% Current Liabilities Trade payables 327 70 days 388 76 days Other current liabilities 321 312 Sub Total Current Liabilities 648 16% 700 16% TOTAL Equity and Liabilities 4,056 4,448 Track Record (Consolidated) *2,916 2,680 Rs. Cr. Rs. Cr. 19% 18% 23% (21% 800 713 *3,457 700 654 600 500 468 387 400 300 200 100 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Consolidated Total Income PAT & PAT Margin (%) ajanta 31 of 37 ajanta 32 of 37 16#1740% Track Record (Consolidated) EBITDA Margin (%) 35% 25% 28% 19% 18% 20% 15% 10% 5% Net Margin (%) 23% 21% ili 27% 26% 30% 20% 10% 0% 2019 2020 2021 2022 RONW (%) 2019 2020 2021 2022 ROCE (%) 30% 40% 23% 23% 30% 28% 19% 26% 18% 30% 20% 23% 10% 20% 10% 0% 0% 2019 2020 2021 2022 2019 2020 2021 2022 100 80 Track Record (Consolidated) EPS (Rs.) 54 60 44 40 20 500 82 76 400 300 Free Cash Flow (Rs. Cr.) 453 200 202 200 134 100 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Payout (Dividend & Buyback) (%) Payout (Dividend & Buyback) (Rs. Cr.) 70% 60% 500 61% 400 436 47% 50% 40% 38% 25% 30% 300 179 200 116 251 20% 100 10% 0% 0 2019 2020 2021 2022 2019 2020 2021 2022 ajanta 33 of 37 ajanta 34 of 37 17#18Track Record (Consolidated) Receivable Days (Nos.) 111 Inventory Days (Nos.) 120 113 120 95 98 88 100 83 100 79 71 80 80 60 60 40 40 20 20 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Payable Days (Nos.) Book Value per share (Rs.) 120 105 400 100 80 60 40 20 ཐྰ ཎྜ ྴ R 。 98 298 91 300 255 70 200 100 378 346 0 2019 2020 2021 2022 2019 2020 2021 2022 Q2 FY23 Earnings Conference Call Earnings Conference Call Dial-in Information Date and Time November 03, 2022 at 1700 1800 hrs IST 1930 2030 hrs SST/HKT 1230 1330 hrs BST 0730 0830 hrs US ET Dial-in Numbers Universal Primary Access: +91 22 6280 1542 Access +91 22 7115 8372 International Toll USA: +1 3233868721 Number International Toll Free Number UK: +44 2034785524 Hong Kong: +852 30186877 Singapore: +65 31575746 USA: 18667462133 UK: 08081011573 Hong Kong: 800964448 Singapore: 8001012045 ajanta 35 of 37 ajanta 36 of 37 18#19Thank 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 ajanta 37 of 37 19