#1Investor Presentation Q3FY20 05-02-2020 Cipla#2Disclaimer Cipla Except for the historical information contained herein, statements in this presentation and the subsequent discussions 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 our ability to successfully implement our strategy, our growth and expansion plans, our ability to obtain regulatory approvals, technological changes, fluctuation in earnings, foreign exchange rates, our ability to manage international operations and exports, our exposure to market risks as well as other risks. Cipla Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. 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Investor Presentation: Q3FY20 05-02-2020 2#3We are structuring our businesses for long-term sustainable growth and see strong growth opportunities across our key markets • · • 1 'One-India' Bringing together the might of 3 businesses Leveraging strengths across India prescription, Trade generics and Consumer health businesses Strong synergies across portfolio, distribution and consumer focused initiatives US Generics and Specialty 3 Focused and moderated investments across Gx R&D and Specialty built-up Gx R&D investments to be focused towards select value accretive assets • Specialty: Focused investments towards Institutional business; CNS assets to be out-licensed • • 2 Cipla South Africa and Emerging Markets Private market execution in SA; consolidated presence in EMs Strong private market franchise in South Africa; continue to strengthen market leadership in the OTC space as tender business normalizes across the region EM: Focused execution in fewer, bigger markets 4 Lung Leadership across markets Leveraging Cipla's drug-device capabilities to establish a global franchise Establish Cipla as leaders in Lung delivery across key markets (including US and EU) Global co-development and exclusive marketing rights for anti-fungal Inhaled Itraconazole (Pulmazole) Investor Presentation: Q3FY20 3#4Key highlights: Continued growth momentum across key businesses Strong Financial 1 Performance Overall Adj. Revenues: 9% (Q3 YoY Growth) India Rx -18.5% EBITDA: (Adjusted for overhead India Gx Cipla charge on FG inventory movement in Q3 - ~120bps) South Africa 20% 13% Q3 YoY Growth (Private Market, Q3 YoY Growth; ZAR) Continued growth 2 across key markets 14% 7% (Q3 YoY Growth) (Q3 YoY Growth) Momentum continues in 3 the US business US$133mn Q3 Revenues 13% Q3 YoY Growth Retained share in key product categories 4 R&D and Pipeline Progress ◉ 5 Quality and Compliance Q3 R&D at INR 308cr or ~7% to sales; Respiratory trials well on-track for Advair Establishment Inspection Report (EIR) received for Invagen and Patalganga indicating closure of inspection ■ US FDA audit at Bangalore API facility ended with procedural observations Closely working with US FDA to comprehensively address Goa observations Investor Presentation: Q3FY20 4#5Cipla Expanding ROCE profile; Continued focus on maintaining balance sheet health with strong cash flow generation Net Debt Net Debt/Equity ROCE (Pre Tax) 1,581 594 0.10 0.04 13.9% 12.3% 10.9% Mar'19 Dec'19 Mar'19 Dec'19 FY18 FY19 TTM Decl Focused efforts on working capital management and cash generation initiatives Reduction in Net Debt/Equity despite continued growth and strategic investments 1 Trailing Twelve Months Investor Presentation: Q3FY20 5#6Financial Performance - Q3FY20 Cipla Revenues INR 4,371 Cr 9% EBITDA INR 758 Cr / 17.3% 17.3% 5% Adj. EBITDA¹ 18.5% 13% Q3 FY20 (Consolidated) Revenue² Break-up Actuals vs Q3 FY 19 (Rs Cr) Global API, 4% Others, 3% Total Revenue from Europe, 4% 4,371 9% Operations Emerging a) Domestic Sales 1,841 15% Mkts, 7% India, 41% b) Int'l Sales 2,394 4% c) Other Operating Income 136 35% SAGA, 19% EBITDA 758 5% EBITDA % 17.3% PAT 351 6% North America, 22% PAT % 8% 1 Adjusted for overhead charge on FG inventory movement in Q3 - ~120bps 2 Others: Includes CNV business, Vet and others; SAGA includes South Africa, Sub-Saharan Africa and Cipla Global Access; Percentages have been rounded-off Investor Presentation: Q3FY20 6#7India (Rx + Gx): Second consecutive quarter of 13%+ growth in India prescription; Trade Gx comes back to YoY growth India prescription 14% YOY India Trade Gx 7% YOY Q3 Y-o-Y Rs Cr 1777 1577 13% Q3 FY 19 Q3 FY 20 Q3 Q-o-Q Rs Cr 1730 3% 1777 Q2 FY20 Q3 FY20 Cipla Therapy Market Rank Market Share Cipla Market Growth Growth Overall Chronic Respiratory Inhalation 2 7.85% 13% 11% 1 68% 14% 12% Urology 1 14.5% 12% 14% Cardiology 4 5.6% 14% 11% Trade generics business delivered growth of 7% on a year on year basis The prescription business grew 14% on a YoY basis driven by performance across both chronic and acute therapies. Key Business Highlights¹ Continued growth investments: Acquired Vysov and in-licensed Elores brands, Berok Zindagi 2 on-going Investor Presentation: Q3FY20 1.Market data as per IQVIA MAT Dec' 19 7#8SAGA¹: South Africa, Sub-Saharan Africa and Cipla Global Access SA Private Market 20% YoY ZAR Terms South Africa Private South Africa Tender Others (SSA & CGA) Q3 Y-o-Y $ Mn Q3 Q-o-Q $ Mn 30 30 33 33 33 28 29 21 29 31 16% 47 55 56 55 Q3 FY19 Q3 FY20 Q2 FY20 Q3 FY20 Cipla Key Business Highlights South Africa private market continued the momentum growing over 2 times the market at 6.5% as per IQVIA MAT Dec' 19 Cipla continues to rank as the 3rd largest pharmaceutical corporation within the South African private market, in both volume and value Sub-Saharan Africa business grew by 12% on a year on year basis and the CGA business also delivered a growth of 7% over last year Investor Presentation: Q3FY20 1. Financial numbers are rounded off 8#9North America: Momentum continues behind retained share on key assets and new launches Cipla Key Business Highlights Continue to retain share in key product categories despite multiple competitors entering the market; contribution from Cinacalcet in value terms largely normalized now During Q3, the gross margin expanded by over ~350bps vs the same quarter last year. On a YTD basis, the gross margin expansion is ~750bps. Pipeline Update: Progressing well on trials for Advair R&D spends to come off the peak as the Advair generic trial gets over; focused portfolio investments going forward US Specialty: As per plan, NDA for IV Tramadol submitted in Dec via Avenue Therapeutics Investments focused towards Institutional business; out-licensing opportunities being explored for CNS assets Investor Presentation: Q3FY20 Q3 Y-o-Y $ Mn 133 13% 118 Q3 FY19 Q3 FY20 9#10ANDA¹ Portfolio & Pipeline (As on 31st Dec 2019) Total 170 + 22 + 65 ANDA Portfolio 29 56 9 76 76 3 11 Approved ANDAS Tentatively Approved ANDAS ■Cipla Ltd Cipla-PEPFAR2 ■Invagen 1 Does not include Vet product ANDAS 2 PEPFAR approved ANDAS can be commercialised in US Investor Presentation: Q3FY20 Partnered ANDAS 22 3 36 Under Approval ANDAS Cipla 257 ANDAS 10#11EM, Europe and API Emerging Markets $ Mn 55 -17% 45 Q3 FY 19 Q3 FY20 Strengthening portfolio offering in key markets: ☐ The quarter saw the commercialization of products in the market for our partnership with Novartis in Australia and Sri Lanka Progress on the Biosimilar pipeline on target Investor Presentation: Q3FY20 $ Mn Europe 22 27 27 Q3 FY19 Q3 FY20 Strong performance in key DTM1 markets ☐ Overall FPSM UK market share at 15% as per ePACT Oct data ☐ $ Mn ΑΡΙ Cipla 25 23 22 7% 20 25 15 10 5 0 Q3 FY 19 Q3 FY20 Performance in key accounts drives overall growth for the quarter Momentum continues in Seedings & Lock-ins world wide to build future pipeline 1. Direct-to-Market 11#12Key priorities for the upcoming quarters: India 1 2 3 4 Cipla Leverage on the momentum and continue to drive performance across both prescription and generics 。 Execute on the One-India strategy leveraging synergies across the 3 businesses South Africa Continue growth momentum in the private market portfolio to deliver growth in the overall business Continue to be a dominant player in the OTC space and drive further growth in the Mirren portfolio US: Focus on maximizing value opportunity in key commercial assets Continue to track Respiratory filings closely; focused investments going forward Finalize out-licensing for CNS Specialty assets Quality and Compliance Work with US FDA to comprehensively address the observations in Goa Continue to operate our facilities globally with the highest level of compliance and control Investor Presentation: Q3FY20 12#13To Recap: We are structuring our businesses for long-term sustainable growth and see strong growth opportunities across our key markets • · • 1 'One-India' Bringing together the might of 3 businesses Leveraging strengths across India prescription, Trade generics and Consumer health businesses Strong synergies across portfolio, distribution and consumer focused initiatives US Generics and Specialty 3 Focused and moderated investments across Gx R&D and Specialty built-up Gx R&D investments to be focused towards select value accretive assets • Specialty: Focused investments towards Institutional business; CNS assets to be out-licensed • • 2 Cipla South Africa and Emerging Markets Private market execution in SA; consolidated presence in EMs Strong private market franchise in South Africa; continue to strengthen market leadership in the OTC space as tender business normalizes across the region EM: Focused execution in fewer, bigger markets 4 Lung Leadership across markets Leveraging Cipla's drug-device capabilities to establish a global franchise Establish Cipla as leaders in Lung delivery across key markets (including US and EU) Global co-development and exclusive marketing rights for anti-fungal Inhaled Itraconazole (Pulmazole) Investor Presentation: Q3FY20 13#14Cipla Thank you Registered Office: Cipla Limited, Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013 For any queries, please contact Naveen Bansal [email protected] For more information please visit www.cipla.com Investor Presentation: Q3FY20 14