#1Laurus Labs Limited Corporate Office 2nd Floor, Serene Chambers, Road No. 7 Banjara Hills, Hyderabad - 500034, Telangana, India T +91 40 6659 4333, 3980 4333, 2342 0500/501 F+91 40 6659 4320/3980 4320 LAL LAURUS Labs Knowledge. Innovation. Excellence October 20, 2023 To The Corporate Relations Department BSE Limited Phiroz Jeejeebhoy Towers, 25th Floor, Dalal Street Mumbai 400001 - Code: 540222 Dear Sirs, Sub: Investors/Analysts Presentation To The Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai 400 051 Code: LAURUSLABS Please find enclosed the presentation to the Investors/Analysts on the Standalone and Consolidated Financial Results of the Company for the Quarter and half year ended September 30, 2023, for the Investors/Analysts call scheduled on October 20, 2023 @ 04.00 PM (IST), which was already intimated on October 13, 2023. The presentation is also being uploaded on the website of the Company www.lauruslabs.com. Please take the information on record. Thanking you, Yours sincerely, For Laurus Labs Limited VENKATESWAR Digitally signed by VENKATESWAR REDDY GOGIREDDY REDDY GOGIREDDY Date: 2023.10.20 15:06:35 +05'30' G. Venkateswar Reddy Company Secretary & Compliance Officer Encl: As above Registered Office: Laurus Enclave, Plot Office 01, E. Bonangi Village, Parawada Mandal, Anakapalli District-531021, Andhra Pradesh, India. CIN: L24239AP2005PLC047518, T +91 891 682 1101, 1102, F +91 891 682 1103, E [email protected], W lauruslabs.com LAURUS Generics AP & Formulations LAURUS Synthesis Contract Development & Manufacturing Services LAURUS Bio Biotechnology#2LAURUS Labs Knowledge. Innovation. Excellence Q2 & H1 FY 2024 Financial Results and Business Update October 20, 2023#3Safe Harbor Statement This presentation contains statements that constitute "forward looking statements" including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, such statements reflect various assumptions concerning future developments and a number of risks, uncertainties and other important factors that could cause actual developments and results to differ materially from our expectations. These factors include, but not limited to: 1) Change in the General market and macro-economic conditions for key global markets where we operate, 2) Governmental and regulatory trends, 3) Allocations of funds by the Governments in our key global markets, 4) Successful implementation of our strategy, R&D efforts, growth & expansion plans and technological changes, 5) Movements in currency exchange and interest rates, 6) Increase in the competitive pressures and Technological developments, 7) Changes in the financial conditions of third parties dealing with us, 8) Changes in laws and regulations that apply to our customers, suppliers and Pharmaceutical industry. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of Laurus Labs Limited may vary materially from those described in the relevant forward-looking statements The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. This presentation is strictly confidential and may not be copied or disseminated, reproduced, re-circulated, re-distributed, published or advertised in any media, website or otherwise, in whole or in part, and in any manner or for any purpose without written approval from Laurus Labs Limited. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. This presentation is for information purpose only and is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, or the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, or any other applicable law in India. By accessing this presentation, you accept that this disclaimer and any claims arising out of the use of the information from this presentation shall be governed by the laws of India and only the courts in Telangana, India, and no other courts, shall have jurisdiction over the same. 2 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#4Agenda DIANA 1 Corporate Overview 2 Financial Overview 3 Business Review & Strategy 4 Outlook LAURUS Labs Knowledge. Innovation. Excellence#51. Corporate Overview DIANA LAURUS Labs Knowledge. Innovation. Excellence#6Executive Summary ☐ ☐ ☐ ☐ ☐ Overall performance resilient ex-PO1 ; Core growth rebounding on healthy demand environment in API and FDF business. CDMO business project pipeline scaled up along with expansion of our strategic manufacturing partnerships 2,406 Cr Revenues for H1, declined 23%. Excluding PO, growth was 14% * 356 Cr EBITDA resulted in a margin of 15% with higher upfront expense on resource allocation towards growth projects and new initiatives. Gross margins maintained at very healthy level Continued focus on growth Capex in CDMO division CGT technology collaboration achieved breakthrough innovation - NexCAR19, India's First CAR-T approval, Accelerating pursuit for next generation innovation Published ESG report for FY 2023 highlighting enhanced sustainability strategy and commitments Outlook: FY24 to be a consolidation year. H2 priorities 1) includes Higher capacity utilization across network to support growth acceleration, 2) Scale up of the new Animal health commercial asset and 3) Continuous improvement initiatives 1 FY23 financials information is based on material Purchase Order supplies to Big Pharma, that was completed on Dec-22 5 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#7Advancing and augmenting our operational excellence ■ - ■ 1 Operational excellence 2 Value enhancing BD Expanded application of new edge technology into small molecules like; Flow Chemistry, Bio catalysis, Precision fermentation Λ Stabilization of ARV business and achieved over 50% of targeted cost improvement initiatives Grown Scientific and Commercial advantage to onboard new clients Fully automated manufacturing line implemented DP including ODFS 51 quality audits completed Implemented SANKALP (in alliance with DSS+) to enhance Organizational Safety excellence ^ Process, Procurements and Integration, 1 R/R=relapsed refractory 6 3 Transformative technology ☐ ☐ Multi-Year Commercial Contract with leading Global Crop Science company signed and further deepening engagement; potentially diversifies CDMO portfolio Commercial activity initiated from Animal health site LSPL-U2 from Oct'23 Global supply chain migration leading to new CMO opportunities India's first CAR-T cell therapy, NexCAR19 approved from CDSCO on 12-Oct/23 to treat r/r Lymphoma/Leukemia indication Increased stake in Cell therapy company ImmunoACT to ~34% CAR-T treatment capacity expansion to service more patients Collaboration with IIT Kanpur to in- license and fund development of Gene therapy assets. GLP lab construction work initiated for AAV Vectors and Gene Therapy Products Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#8Delivering Capex projects to support Future growth 7 CDMO, VTZ^ Animal Health (AH) (LSPL-U2)- Development & Mfg. facility Commercial activities started at 1st block in Oct'23 and further expansion ongoing Agro Chem (LSPL-U4)-mid-scale Intermediates mfg. Small molecules & High Potent (HP) (LSPL-U3) Clinical cGMP mfg capabilities CDMO, HYD^ R&D Center: Small molecules & HP's Clinical Process research development and Drug product development Labs - online from late FY24 BIO, BLR^ Precision Fermentation, AOF r-proteins Expansion at R1 including new R&D block R2: Downstream capability expansion on track for Dec'23 delivery BIO, MYQ^ Synthetic Biology, AOF r-protein (Food) R3: Greenfield/Large scale, commercial fermentation facility (~2Mn liters under Phased manner) New Capacities brought on line in FY23 Expected to come on line in FY24 Future Capex ■ New capacities brought online in FY23 to get Optimally utilized by FY25 ■ US$ 100mn+ CDMO investment on track ■ Commercial activity initiated at AH unit Expect to spend Rs10bn in FY24 Capex ■ H1 Capex reported at ₹ 385 Cr; 16% of Revenues API, VTZ Small molecules (U4/U6)- Expansion of large scale mfg. by 1500KL+ Extended cGMP HPAPIS FDF, VTZ Expansion of small molecules DP capabilities at U2 by 4 billion unit annually Continuous investment in diversified portfolio to support growth momentum A Vizag (VTZ), Hyderabad (HYD), Bangalore (BLR), Mysore (MYQ) Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#9Strategic Investment - Delivering commitment on breakthrough technology Highlights of our journey Recent Collaboration and Initiative ☐ Increasing stake to ~88% LAURUS Bio September 2023 IIT KANPUR Indian Institute of Technology Kanpur June 2023 Immuno ACT May 2023 wwwwww CHROLO Integrated offering with capabilities across rh- Protein, Bio-catalysis & precision fermentation ■ In-licensed few gene therapy assets and funding support to advance clinical trials Setting-up GLP lab for Vectors and Gene Therapy products ■ Additional infusion; Increasing stake to ~34%. GMP facility on going expansion ■ Phase II completed for CD-19 targeting B- lymphoid malignancies on 60 patients. Product approval received from CDSCO1 (12-Oct 2023) Precision Fermentation Gene Therapy 8 ◉ Acquired 26.6% in CAR-T cell platform co November 2021 ■ Aim to bring novel technology to cancer patients at a very affordable pricing 1 Central Drugs Standard Control Organization (CDSCO) Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 Cell Therapy Retain Goal to Invest up to 10% of profits on disruptive technologies ~370 Crore Cumulative Investment in last 3 years consistent with our Goal LAURUS Labs Knowledge. Innovation. Excellence#10Achieved breakthrough innovation Now Approved India's first indigenously developed CAR-T cell therapy, NexCAR19 granted marketing approval from CDSCO on October 12, 2023 Treatment eligible for Adult patients with relapsed or refractory B-cell lymphomas and leukemia in India. Multi-center Phase I/ II pivotal clinical trial, conducted with 60 patients; clinical data indicates ~70% overall response rate (ORR) Favorable balance of efficacy and toxicity with low grade CRS1; a significant improvement over other commercially approved CD19-directed CAR-T cell therapies Invested over 94 crores in ImmunoAct and further working towards enhancing the GMP facility to service more patients NexCAR19 (Actalycabtagene autoleucel) CAR-T Product MADE IN INDIA Combination of ImmunoAct R&D pipeline, technology and Laurus support in building manufacturing capabilities will accelerate our pursuit of next generation innovation in cell therapies and new drug discovery 1 CRS=cytokine release syndrome; CAR T-chimeric antigen receptor T cells 9 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#11R&D focus: Strong pipeline & Platform with over 2300 Scientist & Quality team US/EU pipeline by Addressable market R&D spent & Filing trend $ 49 bn 60 61 73 79 82 DMFs 26 27 31 37 38 ANDAS $ 28bn 60% Non-ARV 5.7% 3.8% 4.1% 3.5% 4.4% -75% Non-ARV 25% ARV Approved (55)^ 202 211 184 160 1 105 40% ARV FY20 FY21 FY22 ■R&D spends (Cr) Pending/Underdevelopment (62) 6500+ Total talent pool With over 1/3rd of total workforce into R&D, Quality and Regulatory 1H1 FY24 results includes CGT related spends of 6 Cr 10 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 FY23 1HFY24 As % to Sales 1050 R&D Scientists 218 Patents Granted US Filings by Therapy Mix 16% 8% 8% Total Filed 38 53% 16% Para IV: 16 FTFs: 11 * Total filings: EU (18) & Canada (21) ■ARV Anti-Diab. CVS CNS Others 75+ Launches DS and DP LAURUS Labs Knowledge. Innovation. Excellence#12Unwavering Regulatory and Quality foundation Laurus Philosophy "One Quality Standard for All Markets" Facility Regulatory Certifications Year started Last US FDA- Inspection status No of USFDA audits (since inception) 91 Total Regulatory Audits Kilo Lab - R&D USFDA, TGA, KFDA, PMDA, ANVISA Brazil 2008 2021 USFDA 4 1,025+ 935+ Unit 1 USFDA, TGA, MHRA-UK, KFDA, WHO-Geneva, PMDA, NIP-Hungary, Russian GMP, Mexican, ANVISA 2008 2019 EIR Received 6 44 Audits/6 Global Quality audits since inception Customer audits USFDA, BGV-Hamburg, WHO- Regulators (USFDA/WHO/PMDA/TGA/EMA/M HRA) Geneva, ZAZIBONA, Tanzania-FDA, NDA-Uganda, PMPB-Malawi, KENYA, Unit 2 2016 2023- EIR Received LO 5 MCAZ-Zimbabwe, JAZMP-Slovenia, Ethiopia-FDA, Kazakhstan, EMA, MFDS-Korea, Malta-MA USFDA, WHO-Geneva, NIP- Unit 3 Hungary, Russian GMP, Mexican, JAZMP-Slovenia, KFDA, ANVISA 2015 2019 EIR received 4 On-going improvement in QMS and implementation across different functions, incl. R&D, Quality and Technical operations Unit 4 WHO-Geneva, USFDA & Mexican 2018 - 2019 EIR received 1 Unit 5 USFDA 2017 2022 EIR received 1 ■ No incidents of Product Recall in the last five years Unit 6 USFDA 2018 2018 EIR received 1 ■ #51 Quality audits in H1: Regulatory #4 & Customer #47 Sriam Labs None 2018 Nil Nil LSPL U-1 None 2020 Nil Nil 11 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge Innovation. Excellence#13Putting Quality and Excellence at the center of everything we do 12 Guided by our purpose of fostering a healthier world by delivering best quality and affordable healthcare solution Our purpose is anchored in core values of Knowledge, Innovation, Excellence, Integrity, and Care Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 FY 2023 ESG Report released Pioneering Responsible Innovation for a Better Future LAURUS Labs Knowledge. Innovation. Excellence#142. Financial Overview DIANA LAURUS Labs Knowledge. Innovation. Excellence#151H FY24 - Financial Performance Core growth rebounding on healthy demand environment 1H/FY24 Consolidated Financials Comments [*Crore] 1H/FY24 2 1H/FY23 1 Revenues 2,406 3,115 Gross Margins 51.6% 56.3% EBITDA 356 903 Y-o-Y -23% -470bps -61% % to Revenues 14.8% 29.0% -1420bps PBT 95 684 -86% Net Profit 62 484 -87% ■ Revenues: 2,406 Cr, declined 23% YoY, impacted by particularly strong CDMO-Synthesis revenues in base year, partly off-set by improved performance in API and FDF segment Underlying revenues increased by 14% ex-large PO supplies ■ Gross Margins: 51.6%, decreased by 470 bps YoY due to change in share from the business divisions ■ EBITDA : 356 Cr, decreased by 61% YoY % to Revenues 2.6% 15.5% ◉ EBITDA Margins: 14.8%, due to negative operating leverage EPS 1.1 9.0 -88% ■ Net Profits: 62 Cr 1H/FY24 1H/FY23 Y-o-Y Operating Cash flow Capex 474 243 95% 385 416 -7% Net Debt-to-EBITDA 1.9x 1.3x 46% ROCE 11.4% 22.7% -11.3%pts Capex nearly in-line; as we continue to deliver on key projects ■ ROCE declined on higher CDMO base effect, negative leverage and continued strong capital deployment 1 2 14 FY23 financials information is based on material Purchase Order supplies to Big Pharma, that was completed on Dec-22 H1 FY24 results includes 1) Cell & Gene related spends of 6 Cr under R&D expenses, 2) ImmunoACT share of loss 3.4 Cr and 3) LSPL Unit 2 expenses 7 Cr Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#16Financial Performance 2Q/FY24 Q2 recovery; Demand uptrend intact 2Q/FY24 Consolidated Financials [*Crore] 1Q/FY24 2Q/FY24 1 2Q/FY23 Y-o-Y Q-o-Q ■ Revenues: Revenues 1,182 1,224 Gross Margins 50.6% 52.5% 1,576 55.1% EBITDA 168 188 449 -22% 4% -260bps 190bps -58% 12% % to Revenues 14.2% 15.4% 28.5% PBT 41 54 328 Net Profit 25 37 233 -1310bps -84% -84% 120bps 32% 48% Comments 1,224 Cr, declined 22% YoY, particularly from strong CDMO- Synthesis revenues in base year, however quarter-to-quarter recovered in-line with improving API and FDF revenues Underlying revenues increased by 18% YoY ex-large PO supplies ■ Gross Margins: 52.5%, decreased by 260 bps YoY and increased by 190 bps QoQ due to change in product mix ■ R & D spends reported at 58 crs and ~4.7% of Revenues; higher spends partly due to additional initiative in CGT space % to Revenues EPS 2.1% 3.0% 14.8% ■ EBITDA : 188 Cr, decreased by 58% YoY and increased by 12 % QoQ 0.5 0.6 4.3 -86% 20% 1 15 ■ EBITDA Margins: 15.4%, due to negative operating leverage though expanded 120bps QoQ ■ Net Profits: 37 Cr 2Q FY24 results includes 1) Cell & Gene related spends of 6 Cr under R&D expenses, 2) ImmunoACT share of loss 2.1 Cr and 3) LSPL Unit 2 expenses 5 Cr Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#171H FY24 - Business Performance Overall resilient ex-large PO^ 1H/FY24 Segment Performance [Crore] 1H/FY24 1H/FY23 Y-o-Y FDF 617 498 24% APIs 1,226 1,263 -3% CDMO-Synthesis^ 474 1,297 -63% Bio 89 57 56% Total Revenues 2,406 3,115 -23% CDMO-Synthesis 20% Bio 4% APIs 51% 1H/FY24 Business Mix FDF 25% Formulation (FDF) ■ In-line Q2 recovery in ARV business driving +24% growth in H1 and continue to track healthy underlying demand Developed markets sales increased on higher volume growth and stable pricing. Additional products will be launched in the coming periods APIs Stable; steady ARV API and strong delivery in Oncology (+51%) compensated for decline in Other API (-24%) ■ Demand for CMO opportunities upbeat with on-going advantage from Global supply chain diversification CDMO-Synthesis ■ Declined due to large PO executed last year ■ Base pipeline projects scaling up well; executing on scientific led approach to BD Signed first Ag-chem supply contract in Q1 and manufacturing plant will be ready in 15 to 18 months Commercial Validation of Products at Animal health site will be initiated in H2. R&D site (u/LSPL) will be ready by Mar 2024 Bio Record +56% growth, fueled by CDMO services Bio-catalysis expertise enhanced in select small molecules projects ■ R2 capacities being optimized; optimizing capacity going on-line from Dec'23 ^ FY23 includes material Purchase Order (PO) supplies to Big Pharma; reflected in CDMO-Synthesis segment. Contractual supplies was completed in Dec-22 16 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#18Summary Quarterly Performance Revenues 1,029 1,425 [Cr] EBITDA & Margins % 29.5% 1,539 1,576 28.2% 27.9% 28.5% 1,545 26.1% 1,381 20.8% 454 1,182 1,224 449 15.4% 398 404 14.2% 290 287 188 168 3Q FY22 4Q 1Q FY22 FY23 2Q FY23 3Q 4Q FY23 FY23 1Q FY24 2Q FY24 ROCE^ % 17 25.9% 23.7% 22.7% 22.7% 22.7% 21.3% 15.9% 11.4% 3Q 4Q FY22 FY22 FY23 1Q 2Q FY23 3Q 4Q 1Q 2Q FY23 FY23 FY24 FY24 Net Leverage* 1.9x 1.6x 1.3x 1.3x 1.3x 1.2x 1.2x 1.2x Net Debt-to-EBITDA 3Q FY22 4Q 1Q 2Q FY22 FY23 FY23 3Q FY23 4Q 1Q FY23 FY24 2Q FY24 3Q FY22 4Q FY22 1Q Q2 Q3 Q4 FY23 FY23 FY23 FY23 Q1 FY24 Q2 FY24 ^ EBIT (TTM)/Capital Employed Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 * Net Debt/EBIDTA (TTM) [Cr] LAURUS Labs Knowledge. Innovation. Excellence#193. Business review & Strategy DIANA LAURUS Labs Knowledge. Innovation. Excellence#20Business Performance 2Q/FY24 Tracking in-line; Rebound led by Non-ARV API + FDF business 2Q/FY24 Segment Performance [Crore] 1Q/FY24 2Q/FY24 2Q/FY23 Y-o-Y Q-o-Q FDF 285 332 149 APIs 597 629 680 123% -8% 16% 5% CDMO-Synthesis 250 224 720 -69% Bio 50 39 27 44% -10% -22% Total Revenues 1,182 1,224 1,576 -22% 4% 19 CDMO-Synthesis 18% Bio 3% APIs 52% 2Q/FY24 Business Mix FDF 27% Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 ■ Formulation (FDF): Sharp rebound; +16% QoQ following ARV offtake by global agencies and stable pricing. Strong YoY driven by low base last year. Overall underlying demand trend remains healthy. Developed market growth supported by market share expansion ■ APIs: Improved +5% sequentially though declined YoY. Onco bounced back on skewed increased demand (+117%). ARV continued its volume led steady momentum although declined 8% both YoY and QoQ CDMO-Synthesis: Revenues declined due to YoY comparison given large PO executed last year. Otherwise, Baseline business tracking healthy and project pipeline continues to scale up. Commercial scale validations supplies for animal health product started ■ Bio: Strong growth +44% YoY, led by traction in CDMO business. Downstream expansion at R2 on-line from Dec'23 while new R3 site design finalized to strengthen expertise in r-protein and Growth factors. Acquired additional 13.2% stake of Laurus Bio for ~72 Cr LAURUS Labs Knowledge. Innovation. Excellence#21Generic FDF Rebound; Market dynamics stable 149 249 Revenue Growth 393 332 285 2Q FY23 3Q FY23 4Q FY23 1Q FY24 2Q FY24 [Cr] ROW Global Filings 47 Canada 13 8 21 Y-o-Y 123% Q-o-Q16% EU 14 + 18 US 28 * Includes 13 Tentative approvals in US 10 38 14 61 ■ Approved ■Pending Comments ■ Revenues during Q2 increased, led by sharp recovery in the ARV business partly supported from stable price trend on sequential basis. While Developed market revenue increased on higher volumes ■ H1 revenues increased +24% with overall market dynamics across portfolio remaining healthy Higher volumes of existing products in Europe and New approvals from North America to drive FY24 revenues ■ Won 20% of recent NACO ARV tender ■ Small molecules DP capacities at 10 billion unit annually underlying capacity utilization gradually moving up ■ H1 FY24 Developed Market filings: 5 product dossiers were filed and a total of 4 approvals received (including Tentative approvals) 20 20 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#22Generic APIs Q1 impact reversing 680 632 Revenue Growth API Sales mix 714 [* Cr] 8% 12% 9% 18% 19% 23% 33% 29% 22% 33% ■ Onco API 629 Y-o-Y 8% ■ Other API 597 Q-o-Q▲ 5% 68% ■ ARV API 59% 59% 59% 49% 2Q FY23 3Q FY23 4Q FY23 1Q FY24 2Q FY24 Comments 21 2Q 3Q 4Q 1Q 2Q FY23 FY23 FY23 FY24 FY24 ■ API business improved sequentially driven by resumption of shipments in non-ARV segment; however overall declined YoY ■ H1 revenues stable as steady ARV API (-1%) and strong delivery in Oncology compensated for decline in Other API (-24%) Oncology sharply rebounded on favorable demand dynamics, reporting revenue increase of 129% YoY and 117% QoQ. Oncology API additional capacity being created in Unit 3 ■ ARV business retained volume led steady momentum, though Q2 moderated a bit attributing to cyclicality in ordering; declined 8% both YoY and sequentially ■ Other APIs slightly recovered; +2% growth QoQ. CMO order book visibility remain healthy Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#23CDMO - Synthesis Demand acceleration intact; Focus on scientific led approach to BD YOY 9% 47% 32% 34% 37% 35% 62% 19% 95% 34% 63% 105% 272% 248% 78% [Cr] 720 642 577 Consistent Revenue growth every quarter in Baseline projects except for large purchase order (PO) supplies for a Big Pharma 360 176 195 207 148 155 73 86 78 100 116 127 250 228 224 PO supplies T 1Q FY20 2Q FY20 3Q 4Q 1Q FY20 FY20 FY21 FY21 2Q 3Q FY21 4Q 1Q 2Q 3Q FY21 FY22 FY22 FY22 Λ 4Q FY22 1Q 2Q 3Q 4Q 1Q 2Q FY23 FY23 FY23 FY23 FY24 FY24 Comments Y-o-Y 69% Q-o-Q 10% ■ Demand in Baseline projects accelerating and expect to lead the future growth. Q2 and H1 decline due to PO supplies last year Focused on leveraging integrated CDMO enabling platform to achieve diversified revenue stream ensuring resilience ■ Cumulative pipeline of 60+ active projects (Phase I, II, III + CMO). 10 projects commercial (4 API's & several intermediates) ■ ■ Expanding multi-year Ag-chem relationship on critical Als supply. Commercial manufacturing to begin in 2HFY25 Integrated capability expansion on track - Animal health unit started commercial validations supplies. R&D center coming on line by FY24 end ^ Completed PO related material supplies in Dec'22 22 22 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#24Laurus Bio - Bio business Demand upbeat Revenue Growth 39 [Cr] Y-o-Y 44% Q-o-Q22% Comments ■ ■ Reported strong growth for Q2 and H1 at +44% and +56% YoY, led by traction in CDMO services along with customer addition Acquired 13.2%* additional stake of Laurus Bio - Reflects confidence on growing application of enzyme technology platform both internally and externally, signaling great potential ■ R2 capacities being optimized with large-scale CDMO partners and further expect downstream capacity going on-line from Dec'23 ■ Expanding bio-catalysis platform application in small molecule commercial DS projects and explore new opportunities in Semi- synthetic biology Large scale fermentation capacity R3 design phase completed. Project to be executed in phased manner 50 50 46 46 27 22 الاس 2Q FY23 3Q FY23 4Q 1Q FY23 FY24 2Q FY24 * On 11 Sep 2023 Laurus Lab acquired additional stake in Laurus Bio from one of the Promoters and non- executive director and his family members and also with few employees/ex-employee shareholders. Post acquisition Laurus will hold 87.58% on fully diluted basis in Laurus Bio 23 23 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#25Transformation over Last 5 Years - Diversified underlying business growth [Crores] 24 24 2,056 742 744 + 24% CAGR 402 1972 125 6,041 FY 18 ARV ΑΡΙ (Onco+Others) FDF (ex-ARV) CDMO BIO^ FY 23 ^ Reflects revenues since Feb 2021, when we acquired Laurus Bio Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 Diversification of Laurus business FY 18 2,056 Cr ARV 73% FY 23 * 6,041 Cr 37% 36% 7% 18% ■ ARV ■API (Onco+Others) ■FDF (ex-ARV) ■ CDMO ■ Bio LAURUS Labs Knowledge. Innovation. Excellence#26Progress on Capacity expansion Reactor Volumes Over 4x in last 7 years Reactor Capacity (KL) 25 25 220 1,870 4,638 Drug Product Capacity Expanded 5x in last 7 years 7,480 Oral Solids (billion) FY06-11 FY11-16 FY16-21 FY23 2 5 Fermentation Capacity Expanded 18x since acquisition 190 10 Fermentation (KL) FY11-16 FY16-21 FY23 10 FY21^ FY23 +500 KL New capacity under construction for FY24 delivery Well positioned for success through leading commercial offering, supported by ongoing growth Investment ^ Since Acquisition of Laurus Bio (Feb 2021) Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#27Manufacturing footprint - Enabling Customers with Integrated capabilities Visakhapatnam Parawada API CDMO Hyderabad Bangalore U1 U3 U5 LSPL U1 Sriam Lab R1 R2 API CDMO^ API CDMO API Intermediates Bio-Ingredients Bio-Ingredients 336 R1 1,256 KL 296 R & R&D 2,317 KL 53 R 161 KL 42 R3 AGR² 139 KL 31 R 81 KL Atchutapuram U2 U4 U6 FDF API API CDMO API Intermediates 10Bn units, 12 R 89 KL 212 R 112 R 2,001 KL 1479 KL FDA Pmda US Food and Drug Admin Australian Government Kilo Lab API CDMO 43 R + R&D block 4.3 KL Department of Health and Aged Care Therapeutic Goods Administration World Health Organization MHRA EUROPEAN MEDICINES AGENCY SCIENCE MEDICINES HEALTH Regulating Medicines and Medical Devices * Fermentation Capacity in Ltr 1 Reactors 2 All Glass line Reactors ^ Hormone and Steroid facility 26 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURU 5 Fermenters & R&D 10 KL * 4 Fermenters 180 KL* 7.5 Million Lts Reactor Volumes 190 Kilo Lts Fermentation Capacity 11 Sites including R&D API/Drug Substance: 8 CDMO: 5 FDF: 1 Bio-Ingredients: 2 LAURUS Labs Knowledge. Innovation. Excellence#28Strong Commitment to Environmental Protection and ESG Sustainability Technologies Ongoing investments into Green Technology Platforms Bio-catalysis ☐ Continuous Flow Chemistry Sustainability Management across All Sites ■ ■ ■ Carbon Emission Intensity (FY23 vs. 22 per Revenue): 16%^ Water Intensity (FY23 vs. 22 per Revenue): [14% 4% Energy from Renewable sources 77% of hazardous waste recycled / co-processed Other initiatives: Swapped fuel-based vehicles with E-vehicles, Installed VFDs across sites to regulate energy consumption etc Well recognised from Global agencies on ESG score MSCI ESG RATINGS CCC B BBB A AA AAA Consecutive "BBB" rated by MSCI ESG Ratings in FY22 & 23 Accreditation & Progress ☐ ■ ☐ Recognition from external ESG rating Agencies including MSCI, S&P Dow Jones Sustainability Index (DJSI), CRISIL, and EcoVadis Launched "SANKALP" to Enhance Organizational Safety Excellence Won Several Awards on EHS best and innovative practices Initiated new system certification ISO 50001:2018 across company Double materiality assessment introduced (aligned with GRI, SASB) to create greater impact FY 2023 Integrated report published Gain more insight on our enhanced sustainability strategy and commitments SILVER 2022 ecovadis Sustainability Rating Laurus Labs Limited Pharmaceuticals S&P Global ESG Score 2022 43/100 As of October 21, 2022 Scores are industry specific Learn more at spglobal.com/esa/scores S&P Global Sustainable 1 Score improved by 30 points to 43/100 vs LY Moved to Top quartile for the first time in Dec- 22 review 68 CSRHUBⓇ ESG Ranking (%) Compared With 32,568 Companies Low 0-29 30-39 40-49 50-59 60-79 80-100 High 27 ^ Scope 1,2 and 3 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#294. Outlook DIANA LAURUS Labs Knowledge. Innovation. Excellence#30FY 2024 : Sales outlook retained 1 Sales drivers CDMO: Revenue expansion of base pipeline projects and 2H Animal health contract supplies kick-off Generics¹: Growth in existing and new CMO contracts (Diabetic & CV portfolio) across key markets, Key product approvals and better visibility in ARV business Bio: Ramp-up of new capacity implemented Completion of Large Purchase order in FY2023 Pricing Headwinds in ARV APIs and FDF ■ Year of Consolidation Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence 1 Including API and Formulation 29 29#31Earnings call details Laurus Labs Results Conference Call to be held on Friday, 20th October 2023 at 4:00 PM IST Dial-In Details - Universal Dial-In +91 22 6280 1342 India Local access Number +91 22 7115 8243 Singapore Hong Kong USA UK 800 101 2045 800 964 448 1 866 746 2133 0 808 101 1573 30 Click below to Express Join with Diamond Pass Click here to register Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 LAURUS Labs Knowledge. Innovation. Excellence#32About Laurus Labs Founded in 2005, Laurus Labs is a research-driven pharmaceutical and biotechnology company with an aim to improve the quality of life for millions around the world. We have a global leadership position in select Active Pharmaceutical Ingredients (APIs) including anti-retroviral, oncology drugs (incl High Potent APIs), Cardiovascular, and Gastro therapeutics. We also offer integrated CMO and Contract Development and Manufacturing Organization (CDMO) services to Global Innovators from Clinical phase drug development to commercial manufacturing. We are passionate about continuous technological advances for Smart and Green chemistry skills to driven efficiencies and sustainable manufacturing backed by proven regulatory inspection and quality foundation. Laurus employs 6500+ people, including around 1050+ scientists at more than 11 facilities approved by global agencies USFDA, WHO-Geneva, Japan-PDMA, UK-MHRA, EMA, TGA etc. During FY2023 Laurus generated 6,041 crore in annual revenue and is listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. Laurus' proactive stance to conduct business with utmost Transparency, Integrity and Respect for environment & communities have earned it a place in Governance benchmark, consistently Certified Great Place to Work and Rated “BBB” by leading MSCI ESG Ratings. Corporate Identification No: L24239AP2005PLC047518. Investor relations contact Vivek Kumar T: +91 040 6659 4366 E: [email protected] E: [email protected] For more information Please visit our website www.lauruslabs.com Please consider the environment before printing this Presentation 31 Laurus Q2 & H1 FY 2024 Investor Presentation | October 20, 2023 051 Building Strong Foundation LAURUS Labs Knowledge. Innovation. Excellence