#1M Marksans Pharma Ltd. Investor Presentation Q3 & 9M FY22 February 11, 2022 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 ©2021 - Marksans Pharma Limited, All Rights Reserved.#2Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The company's results may be affected by factors including, but not limited to, the risks and uncertainties in pharmaceutical research and development; competitive developments; regulatory actions; the extent and duration of the effects of the COVID-19 pandemic; litigation and investigations; business development transactions; economic conditions; and changes in laws and regulations, including health care reform. The company undertakes no duty to update forward-looking statements except as required by applicable law. ©2021 - Marksans Pharma Limited, All Rights Reserved. 2#3M Marksans Pharma Ltd. Q3 & 9M FY22 Earnings BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 2021 - Marksans Pharma Limited, All Rights Reserved. ©2021 - Marksans Pharma Limited, All Rights Reserved.#4Management Commentary We are on the cusp of long term growth across regulated markets. Our diversified portfolio continues to gain market share in these markets and helped us register growth, despite pricing and demand challenges. The geopolitical environment has impacted profitability, but we remain focused on our target to reach Rs 2,000 crores revenues along with margin improvement over the next couple of years. " 1,072.8 + 2.6% (YoY) Revenue 9MY22 (*cr.) ©2021 - Marksans Pharma Limited, All Rights Reserved. Mark Saldanha Founder, Chairman & Managing Director 195.2 (20.1)% (YoY) EBITDA 9MFY22 (*cr.) 157.2 (1.2)% (YoY) 9MFY22 PAT (cr.) 323.0 (Dec'21) Cash (cr.) 4#59MFY22 Highlights Revenues *1,072.8 Cr 2.6% YoY EBITDA 195.2 Cr (20.1)% YoY (510) Bps PAT 157.2 Cr (1.2)% YoY (90) Bps EPS 3.82 (0.3)% YoY ☐ Financial Highlights Operating Revenue was 1,072.8 cr.; growth of 2.6% as compared to 1,046.0 Cr. in 9MFY21 EBITDA at 195.2 cr. as compared to 244.2 cr.in 9MFY21 EBITDA margins at 18.2% in 9MFY22 as against 23.3% in 9MFY21 ■ PAT stood at 157.2 Cr. as compared to 159.2 Cr. in 9MFY21 ☐ ■ EPS for 9MFY22 was 3.82 compared to 3.83 in 9MFY21 ©2021 - Marksans Pharma Limited, All Rights Reserved. Business Highlights ■ R&D spend of 21.7 cr. at 2.0% of sales in 9MFY22 Capex for 9MFY22 at 32.8 cr. ■ EBITDA margin reduction due to increased input & freight costs and incremental R&D expenses ■ Better product mix, lower depreciation, finance cost and reduced tax outflow meant a marginal reduction in PAT New Launches Launched new products: ■ Cetirizine Hydrochloride Tablets 5 mg and 10mg for perennial allergic rhinitis treatment in US ■ Acetaminophen Extended-Release Tablets USP, 650 mg (OTC) in US Fluoxetine in US ■ Loperamide 2mg Hard Capsules in UK 5#6Financial Highlights - Profit and Loss Statement Particulars (cr.) 9MFY22 9MFY21 YOY Q3FY22 Q2FY22 Q3FY21 YOY Operating Revenue 1,072.8 1,046.0 2.6% 362.6 361.2 358.5 1.2% Gross Profit 567.6 601.1 (5.6)% 195.1 185.8 216.9 (10.1)% Gross Profit Margin % 52.9% 57.5% (460) Bps 53.8% 51.4% 60.5% (670) Bps EBITDA 195.2 244.2 (20.1)% 57.8 60.1 91.1 (36.5)% EBITDA Margin % 18.2% 23.3% (510) bps 15.9% 16.6% 25.4% (950) bps Finance Costs 3.4 5.2 (33.7)% 1.0 1.5 1.7 (43.2)% Depreciation & Amortization* 23.4 34.8 (32.7)% 8.6 7.4 8.6 (0.2)% Other Income 26.5 0.7 3,781.3% 12.1 8.6 (3.2) NA Profit before tax 194.9 204.9 (4.9)% 60.4 59.8 77.6 (22.3)% Taxes 37.8 45.9 (17.8)% 12.1 13.5 18.7 (35.4)% Net Profit 157.2 159.1 (1.2)% 48.3 46.3 58.9 (18.1)% Net Profit Margin % 14.3% 15.2% (90) Bps 12.9% 12.5% 16.6% (370) Bps Diluted EPS (*) 3.82 3.83 (0.3)% 1.20 1.11 1.42 (15.7)% *Includes accelerated depreciation of 10.0 cr. in 9MFY21 ©2021 - Marksans Pharma Limited, All Rights Reserved. 6#7Consistent Performance on yearly basis Operating Revenue (cr.) Gross Profit (* cr.) & Gross Profit Margin % EBITDA (cr.) & EBITDA Margin % 1046.0 9MFY21 1072.8 9MFY22 ©2021 - Marksans Pharma Limited, All Rights Reserved. 601.3 567.6 244.2 195.2 57.5% 23.3% 52.9% PAT ( cr.) & PAT Margin 159.0 157.2 15.2% 14.3% 18.2% 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 7#89M FY22 Geographical Performance ROW 4.3% Australia 10.1% Europe, UK 42.3% ◉ Commentary on Geographical Performance US, North America was the highest contributor at #463.5 cr. and witnessed 2.9% growth in 9MFY22 ■ EU, UK formulations market recorded 2.6% growth at 454.1 cr. in 9MFY22 ■ Australia, NZ formulation markets recorded 4.3% growth at 108.7 cr. in 9MFY22 ■ Rest of World recorded 5.0% decrease with sales of 46.5 cr, in 9MFY22 due to logistics issues US & North America 43.2% ©2021 - Marksans Pharma Limited, All Rights Reserved. 8#9M Marksans Pharma Ltd. Company Overview 鳳城 BSE: 524404 | NSE: MARKSANS | ISIN: INE750C01026 2021 - Marksans Pharma Limited, All Rights Reserved. ©2021 - Marksans Pharma Limited, All Rights Reserved.#10Business Overview B R M Marksans Pharma Ltd. Marksans Pharma Ltd., headquartered at Mumbai, is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulations Key focus areas lie in OTC & prescription (Rx) drugs Company manufactures tablets (plain, enteric coated and film coated), hard & soft gelatin capsule, oral liquids and ointments 4 R&D Centres R&D FOCUS ~95% of revenues comes from regulated markets (FY21) 50 Scientists 40+ Products in-Pipeline ACCREDITATIONS FDA U.S. FOOD & DRUG Medicines & ADMINISTRATION ©2021 - Marksans Pharma Limited, All Rights Reserved. Forward-integrated business model Manufacturing facilities accredited by USFDA, UKMHRA and Australian TGA APPROVED PRODUCTS/ IN PIPELINE 350+ Dossiers filed Healthcare products Regulatory Agency Australian Government Department of Health Therapeutic Goods Administration 25+ 300+ Approved MA/ANDA S S Filed MA/ANDA 10 10#11Group Structure M Marksans Pharma Ltd. 米 M Marksans Pharma Inc. NOVA M Marksans Pharma(UK) Ltd. (USA) PHARMACEUTICALS Marksans Holdings Limited ↓ Bell's Healthcare Relon Chem Manufacturer of OTC Liquids & Ointments 450+ OTC/SKU products Manufacturer of Rx and OTC liquid products 162+ product licenses; Wholesale distributor of generic pharma Time-Cap Labs, Inc. Manufacturer of range of OTC & Rx products; 50+ products portfolio Plan to launch 3-4 new products in FY22 Distribution of quality generic pharma Only OTC Regional sales development across Asia (China, Japan, Singapore, Vietnam, Sri Lanka and South Korea) ©2021 - Marksans Pharma Limited, All Rights Reserved. rme 11#12Investment Rationale Sustainable business model with strategic focus on regulated markets with markets of USA, UK, Australia, New Zealand, Canada contributing to c. 95% of total revenues (FY21). Delivering robust and consistent financial performance with FY17-FY21 revenue growing at 15.7%, ROCE margin expansion of 2940 bps and a net cash balance sheet. USFDA, UKMHRA, TGA-Australia accredited manufacturing facilities across its key regions providing for a low-cost base. Continued focus on R&D investments leading to a robust pipeline of new developed and under development products to add onto its existing 300+ approved ANDAS/MAS. Wide range of product offerings and one of the most active Indian firms focused on Soft gel. M Marksans Pharma Ltd. Experienced and professional management team with strong line of operations. Proven ability to pursue value-accretive and prudent M&A opportunities and successful post merger integration Forward integrated business model with presence across the pharma value chain including in-house R&D centers, owned and outsourced manufacturing set up and widespread supply chain and distribution set up through subsidiaries in USA, UK and Australia. ©2021 - Marksans Pharma Limited, All Rights Reserved. 12 122#13Differentiated model-Regulated Markets Focus Global Footprint Acquired key players in major markets to expand its global footprint Regulatory Approvals These markets are empowered with regulatory approvals which allows the company to sell its products without restrictions Higher Margins Proven ability to generate higher margins by eliminating third parties from the value chain Proprietary Marketing Presence Among the few Indian players with a proprietary marketing presence in the world's largest pharma market such as US, UK and Australia 25+ Countries Market reach in 25+ countries with the UK and the US being the largest Expansion in Regulated Markets Proposed expansion in the regulated markets through integrated product development, cGMP compliance, regulatory compliance and utilization of latest technologies Expansion to other developed markets Other prominent markets include Australia, New Zealand, Canada and several other European countries ©2021 - Marksans Pharma Limited, All Rights Reserved. Revenue Contribution Generates ~95% of its revenues from regulated markets Revenue Mix 3.40% 3.00% 5.60% 4.20% 13.8% 10.9% 12.0% 12.4% 4.60% 10.6% 37.3% 45.5% 42.3% 41.3% 45.0% 45.5% 40.7% 41.1% 42.5% 38.5% FY17 FY18 FY19 FY20 FY21 US, North America Europe, UK ■Australia, NZ ROW 13#14Differentiated model - Forward Integration Goa, India Navi Mumbai, India 米 R&D Farmingdale, United States Southport, United Kingdom ©2021 - Marksans Pharma Limited, All Rights Reserved. Manufacturing Supply chain and distribution M Marksans Pharma Ltd. Australia Goa, India 米 Southport, United Kingdom NOVA PHARMACEUTICALS United Kingdom, Europe Bell's Healthcare Relon Chem United States, Canada Farmingdale, United States Time-Cap Labs, Inc. Rest of World Exports End Consumers Pharmacy Stores Retail Chains 000 DOO +3000 000 |000 Hospitals 14#15Differentiated model - Accredited facilities across key regions (Manufacturing Facilities) Marksans Manufacturing Facility Goa, India Manufactures oral solid tablets, and soft and hard gelatin capsules Ongoing expansion for adding new manufacturing lines Capacity 8 bn softgel and hard gelatin capsules and tablets per annum Accreditations FDA U.S. FOOD & DRUG ADMINISTRATION Australian Government Department of Health Therapeutic Goods Administration Southport, United Kingdom Manufactures non-sterile liquids, ointments and powder sachets 2 bn bottles per annum 1 bn tubes per annum Supplies to UK, West Africa & Middle East 1 bn sachets per annum 来 ☐ Farmingdale, United States Manufactures hard gels, tablets and capsules Spread over an area of 7000 sq. m "Made in the USA" product offering Added incremental packaging lines 6 bn tablets and hard capsules per annum ©2021 - Marksans Pharma Limited, All Rights Reserved. Medicines & Healthcare products Regulatory Agency Medicines & Healthcare products Regulatory Agency FDA U.S. FOOD & DRUG ADMINISTRATION 15#16Our strategic growth drivers of the past... Strategy Growth Levers ]] Increased presence in softgel segment Consistently focused on the niche soft gel segment which gives higher margins Forward Integration Acquired front end companies which give access to local brands and large wholesalers thereby enabling easy distribution push 1500 Calibrated manufacturing to optimize resources Aligned manufacturing in India and regulated markets for consistent supplies to leading retailers in developed markets ©2021 - Marksans Pharma Limited, All Rights Reserved. 16 16#17...along with Accretive Acquisitions... Successful Track Record of Integrating Acquisitions Acquisitions Target Country Transaction Date NOVA PHARMACEUTICALS Australia March 24, 2006 Bell's Healthcare United Kingdom December 31, 2007 Relon Chem United Kingdom August 27, 2008 5.7 Time-Cap Labs, Inc. United States June 30, 2015 2.9 Sales increase from 43.9 4.3 acquisition to FY21 (x) Rationale To leverage Nova's research capabilities To strengthen UK market presence To establish UK front end presence To establish US front end presence ■ To establish ANZ front end presence To enter OTC segment Fund Raise PE-UTI Ventures, FCCB QIP Spring Hill Bioventures Deal value 300 mn USD 50 mn USD 21 mn Transaction Date Feb 2003 Nov 2005 End use Startup Funding Expansion Mar 2015 Time-Cap acquisition funding Preferential allotment- Orbimed, Promoters 3,720 mn July 2021 Utilise Orbimed's resources & expertise to accelerate Marksans endeavour of becoming a fully integrated global company ©2021 - Marksans Pharma Limited, All Rights Reserved. 17#18..And Consistent Product Launches.. RECENT KEY PRODUCT LAUNCHES Imipramine 25 MG BRAND ZYRTEC (Q3FY22) IMODIUM (Q3FY22) PROZAC (Q3FY22) TYLENOL (Q3FY22) METOZOLV CRESTOR COZAAR TAZAC, AXID LYRICA IMURAN TOFRANIL LORATIDINE SGC Cetirizine Hydrochloride - 5 MG, 10 MG Loperamide-2 MG Fluoxetine Acetaminophen Extended-Release Tablets USP- 650 mg (OTC). Metoclopramide 10MG Rosuvastatin - 5,10, 20, 40 MG Losartan Potassium – 25, 50 & 100 MG COMPOSITION THERAPY SEGMENT MARKET Antihistamine USA Gastrointestinal UK Central Nervous System US Pain Management US Gastrointestinal Cardiovascular UK 米 UK Cardiovascular UK Nizatidine 150 & 300 MG Gastrointestinal UK Pregabaline-25, 50, 100, 150, 200 & 300 MG Central Nervous System UK Azathioprine 50 MG Immunosuppressant UK Central Nervous System UK RISPERDAL ADVIL MINI PANADOL RAPID MUCINEX Claritin Risperidone Ibuprofen(Min) SGC - 200mg Paracetamol (Rapid) 650mg Mucinex Fast/Sinus Max Antihistamine Australia Central Nervous System UK Pain Management Pain Management Cough & Cold UK USA Australia USA ©2021 - Marksans Pharma Limited, All Rights Reserved. 18#19...have led to Marksans of Today.. Business: Regulated Markets Focus Products FY17 Regulated markets: 741.6 crs Emerging markets: 32.9 crs 100+ FY21 1313.8 crs Regulated markets: Emerging markets: 62.3 crs ~300 Manufacturing Facilities Goa: 6 billion capsules and tablets p.a. UK: 13.6 million bottles p.a. 7.8 million tubes p.a. 5.75 million units p.a. USA: 5 billion tablets & capsules p.a. 1- Goa R&D R&D to sales: 0.6% Revenue: 767.2 cr. EBITDA: 44.7 cr. Goa: 8 billion capsules and tablets p.a. UK: 2 billion bottles p.a. 1 billion tubes p.a. 1 billion sachets p.a. USA: 6 billion tablets & capsules p.a. 1 - Goa 2- Navi Mumbai R&D to sales: 1.4% Revenue: 1376.2 cr. EBITDA: 339.6 cr. Financials ©2021 - Marksans Pharma Limited, All Rights Reserved. EBITDA %: 5.8% PAT: 11.3 Cr. EBITDA%: 17.2% PAT: 238.5 cr. 19#20...with consistent financial performance over the years... Operating Revenue (cr.) Gross Profit (cr.) & Gross Profit Margin (%) 56.8% 50.2% CAGR:15.7% 49.9% O 1,376.2 42.7% 40.2% 781.1 1,134.2 1,000.1 912.7 566.4 502.1 767.2 389.6 308.4 FY17 FY18 FY19 FY20 FY21 EBITDA (*cr.) & EBITDA Margin 24.7% FY17 FY18 FY19 FY20 FY21 PAT (cr.) & PAT Margin 17.2% 17.0% 10.6% 13.2% 8.0% 8.6% 339.6 1.5% 5.8% 3.9% 192.3 132.1 11.3 44.7 78.4 35.8 80.4 120.8 238.5 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 ©2021 - Marksans Pharma Limited, All Rights Reserved. 20 20#21...with consistent financial performance over the years (cont'd)... ROE 7.6% 2.6% FY17 19.0% 14.8% ROCE (%) 26.9% FY18 FY19 FY20 FY21 Net Debt to EBITDA (x) 1.9 FY17 1 0.5 FY18 ©2021 - Marksans Pharma Limited, All Rights Reserved. 10.4% 3.2% 24.6% 19.1% 32.6% FY17 FY18 FY19 FY20 FY21 Fixed Asset Turnover Ratio (x) * 4.4 4 3.6 3.3 2.9 -0.4 -0.6 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * Includes Tangible net fixed assets, CWIP and net Intangibles 21#22..and Presence in Diverse Segments Therapeutic Segment-Wise YoY Segment Revenue YoY 6.8% 10.2% 8.2% 11.7% 13.9% 7.5% 8.3% 8.6% 8.6% 7.3% 44.1% 12.0% 8.8% 20.6% 18.4% 10.9% 51.0% 54.7% 58.0% 58.6% 5.2% 11.7% 6.0% 6.3% 6.7% 14.2% 9.0% 12.4% 13.8% 13.1% 9.0% 14.6% 15.4% 15.4% 14.5% 55.9% 49.0% 43.9% 45.3% 42.0% 41.4% 35.1% 31.4% 29.6% 30.8% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Cardiovascular System (CVS) Central Nervous System (CNS) Gastrointestinal RX ■ OTC ■Pain management Cough and cold Anti-diabetic Others ©2021 - Marksans Pharma Limited, All Rights Reserved. 22#23Geography wise performance - US Business Company Presence ■ In June 2015, Marksans acquired Time-Cap Labs which enabled Marksans to establish proprietary marketing presence in US. Among the Top 20 Indian pharma companies in USA with a business franchise of USD 100 million 50+ products in various therapy area segments. Major focus on pain management with 30+ products Strong distribution channel marketing for both OTC and Rx products. United States Overview of the market ■The US holds over 30-40% of the global pharmaceutical market. Nominal spend on medicine is expected to grow at projected CAGR of 8% to reach USD 685 billion by 2023, due to ageing population, greater focus on speciality diseases and biologics innovation.* ■ Marksans' differentiated product offering of Softgel ☐ Capsules alone has market potential of USD 9 billion in US** (9MFY22) 463.5 ©2021 - Marksans Pharma Limited, All Rights Reserved. 2.9% (Cr.) Total Revenue Y-o-Y Growth 43.2% Contribution to Total Revenues *Source: internal estimates, **PwC 23#24USA- Unique Advantage of Own Manufacturing and Marketing Old Business Positioning M Marksans Pharma Ltd. New Business Positioning M Marksans Pharma Ltd. Outsourced Distributor / 3rd party pharma co Distributors Acquired entity Time-Cap Labs, Inc. Manufacturer & Distributor of OTC & Rx Distributors Distributor 1 Distributor 2 Distributor 3 Large Wholesalers (Red Oak, ClarusOne, WBad) Pharmacies/ Groceries Government Institutions Wholesalers & Retailers in US Presence of distributor in the value chain eats away the margins given Marksans doesn't have its own front presence Can't control the relationships of sole distributor with other distributors, which can greatly affect the product reach in wholesale & retail chains in U.S. Wholesalers & Retailers in US ■ Own presence in the form of acquired entity gives the required front- end presence in the U.S. markets ■ Marksans can also send its own bulk products, where TCL can repackage and place the products in the U.S. markets Full control of the distributors and end-point wholesalers & retailers ©2021 - Marksans Pharma Limited, All Rights Reserved. 24#25Growth levers for the future - US business ☐ Revenue FY21 50+ products in various therapy area segments Positioned in the niche soft gel category ☐ Strong distribution Channel marketing for both OTC and Rx products 23 ANDAs filed till date Organic Growth Expanding presence in other North American regions Increase in ANDA filings for soft gel dosages Partnership with leading retailers Exploiting untapped potential of drugs going off patent New Products in Pipeline 25 products identified with a focus on soft gels and OTC products 15 products in R&D ☐ Inorganic Growth Planning to acquire ANDAS to cut short development time ■ Increasing capacity in India and US facility to meet future requirements Revenue FY25 ■ To achieve a sustainable growth and profitability ©2021 - Marksans Pharma Limited, All Rights Reserved. 45 25#26Geography wise performance - UK Business Company Presence ■ One of the top 5 Indian pharma companies in the UK. ■Relonchem and Bell have partnered with leading UK retailers including Tesco, ASDA, Morrisons, Boots for a strong distribution footprint. ☐ Bell has a strong OTC portfolio with 450+ OTC/SKU products Relonchem's portfolio comprises 162 MA's. Overview of the market ■ The UK pharmaceutical market is estimated to grow by a CAGR of 3.6% to ~USD 34.0 billion by 2023, driven primarily by a universal coverage, growing disease burden and ease of healthcare access.” * United Kingdom (9MFY22) 454.1 ©2021 - Marksans Pharma Limited, All Rights Reserved. 2.6% (Cr.) Total Revenue Y-o-Y Growth 42.3% Contribution to Total Revenues *Source: Internal estimates 26#27UK-OTC Positioning gives Marksans the Right to Win Geography Trends in the category ■ The UK is one of the largest Rx-to-OTC switch markets in EU Large number of registered remedies sold outside pharmacies FMCG oriented OTC market Marksans Presence Strong OTC presence in Europe, with a subsidiary in UK Therapy Areas The largest segments within the OTC market are pain relief and cough/cold/sore throat The UK subsidiary product portfolio cater to the prime segments within the OTC market. Bells Healthcare has numerous products within the Cough and cold and analgesics segment Dosage Forms ©2021 - Marksans Pharma Limited, All Rights Reserved. ■ Consumers rated softgel capsules (SGC) as a highly desirable form and this industry has limited competition globally ■ 82% rated softgels as fast acting and effective, and 89% found them easy to digest Marksans enjoys a strong expertise in SGC manufacturing in both prescriptions as well as OTC 27#28Growth levers for the future - UK business Revenue FY21 Wide UK customer base and 100% reach within the distribution channel Broad and diversified range of product portfolio with well recognized brands Captured a large share of OTC and generic markets Organic Growth Working on receiving USFDA approval for the Southport facility to commence exports to the USA Increase in partnerships with major national distributors, pharmacies, retailers and chemist wholesalers New Products in Pipeline Developed a range of narcotic & dermatology products Range of oral solid products under development to increase market share in generic and OTC markets Investment in manufacturing facility to develop oral liquid solutions Inorganic Growth For rapid expansion into various therapy areas and other markets such as in the UK and in Europe, the Company plans to acquire product licenses Revenue FY25 ■ Sustainable revenue growth Consistently delivering on profit margins Focus on Europe, USA and other export destinations One of the key OTC product supplier and private label manufacturer in the industry ©2021 - Marksans Pharma Limited, All Rights Reserved. 88 28#29Australia Region Business Company Presence ☐ ☐ Marksans carries out business operations in Australia and New Zealand through its subsidiary Nova Pharmaceuticals. Nova is one of the leading branded and private label and suppliers in Australia Tie-ups with topmost retailers & pharmacies in Australia, like Woolworths Ltd., Coles Mayer Ltd., Aldis, Metcash and Fauldings. Presence in key therapeutic areas Australia & New Zealand (9MFY22) 108.7 ■ Australia and New Zealand will continue to remain focus markets for the Company ■Increased MA filings planned in next 2 years 4.3% (Cr.) Total Revenue Y-o-Y Growth Overview of the market ■ Australia's pharmaceutical market is set to rise to USD 28.8 billion by 2026 registering a CAGR of 2.1%* 10.1% Contribution to Total Revenues ©2021 - Marksans Pharma Limited, All Rights Reserved. *Source: Internal estimates 29#30Rest of the World Company Presence ■ ROW includes markets of South East Asia, MENA, Russian Federation & Africa ☐ ■ Presence in emerging markets such as South East Asia, MENA, LATAM, CIS and Africa ■ In these countries, specific countries like Iraq, Ukraine and South East Asia are targeted ■ In process of launching new products and obtaining product registration for over 100 products in emerging markets. Overview of the market Spending in emerging markets is expected to grow at ~5% CAGR to reach USD 475 billion by 2024* Rest of the World (9MFY22) 46.5 (Cr.) ©2021 - Marksans Pharma Limited, All Rights Reserved. (5.0)% Total Revenue Y-o-Y Growth 4.3% Contribution to Total Revenues *Source: Internal Estimates 30#31Our Future Growth Strategy... Strategy Expansion Expansion of current product portfolio in regulated market Product Launch New product development and launch Growth Levers The company generates ~95% of its revenue from regulated markets and expects to further expand in these markets through continued push of existing products and new launches in regulated and other related geographies Will continue to add new 4-6 new products in UK, USA every year which are expected to drive revenue growth to Rs 2,000 crores and beyond in the next few years Inorganic Expansion Inorganic expansion to enhance manufacturing capabilities, product portfolio, newer markets The company has plans to acquire manufacturing assets in India as well as marketing licenses in Europe and USA and emerging markets to expand business operations in global markets Backward Integration Backward integration into API manufacturing Plans to backward integrate into API manufacturing (for captive consumption thereby having presence in the entire value chain) ©2021 - Marksans Pharma Limited, All Rights Reserved. 31#32... guided by well rounded Board with Global Expertise... Mark Saldanha Founder, Chairman & Managing Director " Science Graduate ■ 30+ years experience in the marketing, production and finance functions Ex-Whole Time Director, Glenmark Pharmaceuticals Ltd. ©2021 - Marksans Pharma Limited, All Rights Reserved. Sandra Saldanha Promoter, Whole-Time Director ■MA in Arts (Sociology) Experience in Human Resource Management, Business Development, Projects and Supply Chain Management Varddhman Jain Whole-Time Director ■ M. Pharm (Pharmaceuticals) 27 years experience in manufacturing, quality R&D, compliance & regulatory affairs both for API and FDF manufacturing Successfully handled several regulatory inspections including USFDA, MHRA, PMDA Japan and WHO Created sound Internal processes for regulatory clearance Seetharama Raju Buddharaju Independent Director B.Sc., PGDBM, PGDMSM ■ 36 years of experience in Sales Management, Marketing and Business Administration ■ Ex-Parke-Davis, Pfizer 32#33... guided by well rounded Board with Global Expertise... ☐ ☐ Abhinna Sundar Mohanty Independent Director M.Sc., Mathematics 39 years experience in sales, marketing, business development and business strategy Ex-Alembic Pharma Digant Mahesh Parikh Independent Director MBA, Finance ■ 26 years experience in Corporate Finance, Strategic Planning and Business Set-up & Scale up. Dr. Meena Rani Surana Independent Director B. Pharm., Ph.D in Pharmaceutics -Indian Institute of Technology, BHU, Varanasi, India, Post Doctoral Fellowship in Pharmaceutics- University of Minnesota, USA ■ 28 years experience in pharmaceutical regulatory affairs, quality assurance, formulation and pre-formulation Dr. Sunny Sharma Non-Executive Director MBA, MBBS. ■ Senior Managing Director, OrbiMed Asia Ex-Investor Growth Capital (IGC), Easton Capital ©2021 - Marksans Pharma Limited, All Rights Reserved. 33#34... and driven by Experienced Leadership Team " Mark Saldanha Founder, Chairman & Managing Director Science Graduate ■ 30+ years experience in the marketing, production and finance functions Varddhman Jain Whole-Time Director ■ M.Pharm (Pharmaceuticals) ■ 27 years experience in manufacturing, quality R&D, compliance & regulatory affairs both for API and FDF manufacturing Sathish Kumar Anjani Kumar MD Marksans Pharma UK Ltd. COO-Global Operations and USA M. Pharm (Pharmaceuticals) 20+ years experience in Production, Formulation development, Regulatory, Technical and Business Development. B.Pharm (Pharmaceuticals) ■ 38+ years experience in all aspects of pharma management Ex-Wockhardt, Cipla, Lupin " David Mohammed MD-Pharmaceuticals Australasia Pty Ltd 20+ years experience in pharma innovation, operations, distribution Ex-MD Australasia and Africa, Valeant Pharmaceuticals Jitendra M Sharma Chief Financial Officer ■ CA, CWA ■ 28 years expertise in treasury, forex management, costing, fund raising and internal control systems. ©2021 - Marksans Pharma Limited, All Rights Reserved. 34#35Shareholder Information Others 48.75% Promoters 48.25% (Shares pledged: Nil) FII DII 2.59% 0.41% ©2021 - Marksans Pharma Limited, All Rights Reserved. Share Information (as on Dec 31, 2021) NSE Ticker MARKSANS BSE Ticker 524404 Market Cap (Cr) 2,457.9 % free-float 51.8% Free-float market cap (Cr) 1,273.1 Shares Outstanding 40,93,13,698 3M ADTV (Shares)* 18,81,425 11.9 3M ADTV (cr)* Industry *Source: BSE, NSE Pharmaceuticals 35#36ESG Philosophy Environmental Efficient use of resources to minimize the waste generation. Priority to energy conservation measures including regular review of energy generation and consumption and effective control on utilization of energy. ■ Committed to protect environment and ecological balance also maintaining quality of soil, air and water. Social Company is actively contributing to the social and economic development and build a better sustainable way of life for weaker sections of society. Ensures social and economic dignity and freedom regardless of nationality, gender, race, economic status or religion to all its talents at all level. ■ Committed to improving the quality of life of the local community and society at large. Governance ■ Committed to good corporate governance to achieve long term corporate goals and to enhance shareholders value. Highly competent and diverse board of directors Highest degree of transparency, responsibility and delegation in all facets. ■ Internal Control & Policy for managing conflict of interest and code of conduct. ©2021 - Marksans Pharma Limited, All Rights Reserved. 36#37ESG Philosophy Environmental ☐ ■ Procured 2.9 million units of renewable energy in FY21 ■ 1.1 cr. spent on energy saving equipment in FY21 ■ Installed energy efficient motors Social Organized certified courses for enhancing employees' management and technical skills ■ Distributed free food to lockdown affected underprivileged Governance ■ Committed to good corporate ☐ governance to achieve long term corporate goals and to enhance shareholders value Highly competent & diverse Board ☐ ■ Installed energy saving lamps ©2021 - Marksans Pharma Limited, All Rights Reserved. ■ Antibody testing for migrant workers ■ Internal Control & Policy for ■ Provided essential supplies to frontline health workers managing conflict of interest and code of conduct ■CSR policy in place. Exceeded requirement of 2% of past 3 years average net profit on CSR in FY21 37#38M Marksans Pharma Ltd. For more information please contact: Investor Relations Team Jitendra Sharma (CFO) Marksans Pharma Ltd Tel: +91 022 40012000 [email protected] Ravi Udeshi/Rahul Thakur Christensen Investor Relations Tel: +91 22 4215 0210 [email protected] [email protected] Corporate Office 11th Floor Grandeur, Off Veera Desai Road, Opp Gundecha Symphony, Andheri (W), Mumbai - 400 053, Maharashtra - India © 2020 Marksans Pharma Limited, All Rights Reserved. "Marksans Pharma" and The Marksans Pharma Logo are trademarks of Marksans Pharma Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.