#1Dr Lal PathLabs May 23, 2022 National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra Kurla Complex Bandra (E) Mumbai 400 051 BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 Subject: Corporate Presentation Q4 & FY22 Dear Sir/Madam, Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations), please find attached herewith Corporate Presentation of the Company for Q4 & FY22, which the Company proposes to share with analysts/ investors. We request you to please take the same on record. Thanking You, Yours Faithfully, For Dr. Lal PathLabs Limited Rajat Kalra Company Secretary and Legal Head Encl. As above Regd. Office: Dr. Lal PathLabs Ltd., Block E, Sector-18, Rohini, New Delhi - 110085, +91-11-30258600, Fax: +91-11-2788-2134 Corporate Office: Dr. Lal PathLabs Ltd., 12th Floor, Tower B, SAS Tower, Medicity, Sector-38, Gurugram - 122 001, Haryana +91-124-3016-500, Fax: +91-124-4234-468 E-mail: [email protected], Web: www.lalpathlabs.com, CIN No.: L74899DL1995PLC065388#2Dr Lal PathLabs Dr. Lal PathLabs Limited (DLPL) ENABLING HEALTHIER LIVES Corporate Presentation May 2022#3Disclaimer By attending the meeting / telephonic call where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by Dr. Lal PathLabs Limited (the "Company") for use in presentations by the Company at analyst and investor meetings and does not constitute a recommendation regarding the securities of the Company. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither the Company nor any of its advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. Neither the Company nor any of its advisors or representatives is under any obligation to update or keep current the information contained herein. The information communicated in this presentation contains certain statements that are or may be forward looking. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Any investment in securities issued by the Company will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, readers should not unduly rely on these forward looking statements. The Company, its advisors and representatives assume no responsibility to update forward-looking statements or to adapt them to future events or developments. This presentation has been prepared for informational purposes only. This presentation does not constitute a prospectus under the (Indian) Companies Act, 2013 and will not be registered with any registrar of companies. Furthermore, this presentation is not and should not be construed as an offer or a solicitation of an offer to buy securities for sale in the India. This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of the Company, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, sold or delivered within the United States or to U.S. persons absent from registration under or an applicable exemption from the registration requirements of the United States securities laws. This presentation and the information contained herein is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the U.S., Canada, Australia, Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted. By reviewing this presentation, you are deemed to have represented and agreed that you and any person you represent are either (a) a qualified institutional buyer (within the meaning of Regulation 144A under the Securities Act) or (b) not a U.S. person (as defined in Regulation S under the Securities Act) and are outside of the United States and not acting for the account or benefit of a U.S. person. 2 Dr Lal PathLabs#4Table of Contents Company Overview Investment Highlights Q4 & FY22 Highlights 4 6 23 DLPL Strategy for Future Growth 33 DISCLAIMER: This presentation may contain 'forward-looking' statements at places. The Company's business operations remain subject to Classification: Restricted undetermined contingencies and risks. Dr. Lal PathLabs Limited would not be liable for any action undertaken based on such 'forward-looking' 3 statements and does not commit to revising/updating them publicly. Dr Lal PathLabs#5Dr Lal PathLabs Corporate Overview Dr. Lal PathLabs at a glance Our Evolution Dr. Lal PathLabs overview Experienced Management team#6Dr. Lal PathLabs - At a Glance India's Leading & Trusted Diagnostics Company 70+ years of experience in the field of diagnostics 100 Mn patients serviced in last 5 years 31 NABL accredited Labs; National Reference Lab accredited by CAP Largest* diagnostics chain in the country with PAN India presence and consistent track record of quality and growth 20% 3 Year Revenue CAGR 20% 3-Year PAT CAGR 120% Equity Dividend for FY 21-22 ~44% ROCE Excl. Cash & Investments 277 Labs; Geographically spread out network Rs. 344 crore (Net) Cash & Investments as on 4,731 Patient Service Centres (PSC's) 31st Mar, 22 5,113 Pathology & Radiology tests; Comprehensive Test menu As on March 31, 2022 *Largest on the basis of revenue and presence Note: Figures includes Suburban Diagnostics w.e.f. 12th November 2021 5 Dr Lal PathLabs#7• . • Our Evolution 1949 - 2005 2005-2010 Foundation 1949: Founded by Dr. Major S. K. Lal 1995: Company incorporated as Dr. Lal PathLabs Private Ltd. 2000: Three clinical labs receive NABL¹ accreditation 2001: Received ISO 9001:2008 certification 2002: Received 'International Accreditation' from CAP² Building capabilities for scale up 2005: onwards: Investment by 2010 - 2015 Strong position in North India, building network in other geographies Investment by TA Associates Clinical laboratories expansion in North region WestBridge Capital • Growing the business in East region . 2008: Acquisition of • Paliwal Medicare Private • Limited and Paliwal Entry into the South and West regions Diagnostics Private Limited 2010: National Reference Lab set up in Delhi Multiple acquisitions to scale network Successful IPO listing in Dec 2015 2015-2020 Higher contribution from Rest of India, Commissioned state of the art Kolkata Reference Lab Higher contribution from Rest of India business & focus on bundled test program "Swasthfit" Successful commissioning of Regional Reference Lab at Kolkata in 2018 Inorganic growth through acquisition of laboratories in Western & Southern India • 2020 onwards Pan India Player - Acquired Suburban, Building South Ecosystem First to set-up RT-PCR testing network in 2020 Completed acquisition of Suburban Diagnostics in 2021 · Expanded South ecosystem through Bengaluru Reference Lab and network of Hub & Satellite labs Established hub labs in North region Spearheading investments in Digital and InfoSec 1. Classification: Restricted 2. NABL: National Accreditation Board for Calibration and Testing Laboratories. CAP: College of American Pathologists. 6 Dr Lal PathLabs#8Dr. Lal PathLabs overview Established consumer healthcare brand in diagnostic services Pan-India integrated coverage with 277 clinical labs (including National Reference Lab¹ at Delhi and Regional Ref Lab at Kolkata), 4,731 Patient Service Centers (PSCs) and 10,599 Pick-up Points (PUPS)² Catalogue of 491 test panels, 2,675 pathology tests and 1,947 radiology and cardiology tests² Collected and processed ~65.9 mn samples from ~27.3 mn patients in FY22; ~49.7 mn samples from ~20.3 mn patients in FY21; ~47.7 mn samples from ~19.4 mn patients in FY20 Customers include individual patients, corporates and institutions, healthcare providers as well as hospital and clinical labs (lab management) FY22: Revenue: INR 2,087.4 Cr.; EBITDA: INR 600.4 Cr³ (Margin: 28.8%); PAT: INR 350.3 Cr (Margin: 16.8%); FY21: Revenue: INR 1,581.3 Cr.; EBITDA: INR 462.6 Cr³ (Margin: 29.3%); PAT: INR 296.5 Cr (Margin: 18.8%); Classification: Restricted 1. Total area of 7,253 square meters 2. As on March 31, 2022. 3. Normalised EBITDA excl ESOP & CSR Cost Accreditations Test Menu Routine testing Bio- chemistry Specialized testing Molecular diagnostics Proteomics Hematology Clinical pathology Flowcytometry Microbiology Basic radiology Genetics/Cytogenetics / Genomics Histopathology/Immunohistochemistry and Digital Pathology and Al Next Generation Sequencing Renal Pathology and TEM (Transmission Electron Microscopy) Transplant Immunology cap ACCREDITED™ भारत NABL 31 Labs ISO ISO15189:2007 IS9001:2008 ISO27001:2013 7 Dr Lal PathLabs#9Experienced Management team (Hony.) Brig. Dr. Arvind Lal Dr. Om Manchanda Dr. Vandana Lal Bharath Uppiliappan Executive Chairman Managing Director Whole-time Director Chief Executive Officer Ved Prakash Goel Group Chief Financial Officer Shankha Banerjee Chief Executive Officer (Group Cos) Munender Soperna Rajat Kalra Chief Information Officer Company Secretary and Compliance Officer Manoj Garg Group Chief Human Resources Officer 80 Dr Lal PathLabs#10Dr Lal PathLabs Investment Highlights#11Investment Highlights Largest consumer healthcare brand in diagnostic services, with unmatched reputation Demonstrated high scalability, integrated through centralized IT platform for network expansion Best-in-class and consistent financial track record with healthy return ratios Brand Well poised to garner incremental market share centered on intrinsic strengths and expertise in healthcare Consolidating presence in West through Suburban acquisition Fundamental levers in place to drive expansion based on humongous market opportunity Classification: Restricted 10 Dr Lal PathLabs#12Indian Healthcare Services is a large and growing opportunity ~1.4 bn ~$3,400 bn Total Healthcare Expenditure as % India's expected population in 20251 India GDP in FY232 of GDP (2019)5 India 3.0% India, highly underpenetrated market China 5.4% 2.5% Government Expenditure on healthcare (as % of GDP) in FY253 Russian Federation 5.7% South Africa 9.1% Brazil 9.6% $372 bn Japan 10.7% ~62% France 11.1% Expected India's healthcare industry size in CY223 Out of pocket expenses to overall healthcare spends4 Germany 11.7% US 16.8% Source: (1) NITI Aayog- Policy Recommendations by R. K. Sinha, (2) PHDCCI Report, (3) IBEF, (4) Article by Outlook Classification: Restricted India, (5) World Bank 11 Dr Lal PathLabs#13Drivers of India diagnostic services market Diagnostic Services Industry Size 14-16% CAGR ~Rs. 980 Bn ~Rs. 710 Bn FY21 FY23E Growth Drivers Screening, early detection, and monitoring reduce downstream costs Demand for lifestyle diseases-related services to grow Increase in evidence-based treatments Focus on preventive diseases and wellness Source: Industry Data, Centrum Institutional Research Report Classification: Restricted 12 Dr Lal PathLabs#14Diagnostic Services industry continues to remain highly fragmented Standalone Centres 46% Pan- India Chains Highly Fragmented Industry ~35% 17% Diagnostic Chains 37% Hospital Based Labs Largely fragmented and unorganized Source: Industry Data, Centrum Institutional Research Report Classification: Restricted Regional Chains ~65% 13 Dr Lal PathLabs#15Established reputed consumer healthcare brand in Diagnostic Services Pillar of a Strong Brand Online Registration Offline Medico Marketing Doctor Customer BOTS Query Handling Call Centre Classification: Restricted Lab/PSCs Sample Collection Home Retail Marketing 33 Single brand pulls patients Walk-in customers account for highest share of revenues Diverse and large customer . pool Digital Marketing Online Report Delivery Offline Accreditations from CAP, NABL and ISO Centrally administered surveillance programs Coverage in metros, Tier 1 and Tier 2 cities Wide reach through PSCs and PUPS access 24x7 including online access and home DE Accreditations Nationwide Network Digital capabilities Fast Turnaround Time collection Dedicated logistics team 14 Dr Lal PathLabs#16Collection network LPL's scalable business model provides strategic advantage for expansion and consolidation Clinical Labs (Testing/Collection) Walk-ins Home Collection National Reference Lab & Regional Ref. Lab I Patient Service Centers .K App/Call Centre Franchise Web aggregator Walk-ins Å Å Å Classification: Restricted Pickup Points Hospitals Doctors Labs Single brand pulls patients Walk-in customers account for highest share of revenues Diverse, large customer pool offers monetization opportunities 15 Dr Lal PathLabs#17Digital Touchpoints across patient journey Digital Point Of Sale Applications Sample Collection Logistics 忌 Patient App/Website - Order Booking, Reports, Find Nearby Center, Test Info, Expected time of report, Live order status, App Notifications " Partner Portal " Registration, Business snapshots, Report Download, Al enabled Recommendation engine Home Collection Portal - Customer Order Booking, Report status Seamless Omni channel Experience Phlebo App Scan lab number, Documentation, Order Closures for home collection Phlebo Kiosk In lab application for Phlebo Customer Feedback/NPS Scoring Report Engine ■ Live tracking of samples, inter & intra city, cash collection, dynamic routing, gamification, lab shipments Audit Lab Processing 0000 Customers Historical Trends Cumulative Reporting Smart Report " RPA For Govt. Reporting Live Report Status Reporting & Analysis Instruments integrations Quality & Compliance Workflow Management DATA LAKE - REAL TIME ANALYTICS MICROSERVICS BASED ARCHITECTURE SECURED APPLICATIONS SCALABLE INFRA - LEVERAGING POWER OF CLOUD 16 Dr Lal PathLabs#18Extending "Digital Properties" to our Partners to enhance Partner Experience Digital Onboarding Self initiated seamless digital onboarding • Alert center for faster communication • Tie up with partners for faster Partner setup • Notifications via SMS & Emails on progress Reports View and download report for patients • Real time status of the report • • • Printing of reports with and without headers Blocking of reports for non paying customers Send secured and encrypted reports to patients via email Business Snapshot Business analytics on Patients & Revenue Insights into what's selling and what not Individual tests vs panels sold Daily, weekly, monthly & yearly numbers 動画 A B 연 Registration • • • Integrated patient order booking workflow with historical data AI/ML enabled recommendation engine for upselling & cross selling opportunities Notifications to customer on booking, invoicing and report status Quality & Compliance • Digital compliance & quality checklist Document management for all compliance related documents Mobile enabled app for completion of trainings Vials information at every test during registration to reduce errors Revenue Real time ledgers and Invoices Revenue share details Payment history for payments made to clear credit outstanding 17 Dr Lal PathLabs#19Control Tower Implementation "Control Tower" implementation provides a complete visibility of Patient samples across the sample processing lifecycle. The insights will help the business users to reduce delay and improve processing leading to better customer service. = -A Control Tower Teams Front Desk Failure Indicator Areas - Home Collection, Credit management & Sample/Registration Deficiency Logistics Failure Indicator Areas - Unregistered Samples, Bagging & Shipping of samples Lab Operations Failure Indicator Areas - samples scan- in & scan-out, Shipment creation, Report Validation Digital Failure Indicator Areas: Delay in report upload and payment Key Highlights • Centralized Monitoring Team for "Control Tower" Operation • Real-time information for the delays happening across sample processing lifecycle with actionable insights • Quick decision making • Drill-down level information available till last leaf i.e. Lab Number / Field Executive • Information accessible based on Roles & Rights • Overall design is based on "Mobile First" Approach Cloud Data Lake • Future ready Cloud architecture with easily scalable and upgradable • Data for "Control Tower" is processed through "Data Lake" hosted on Cloud • "Data Lake" helps in consolidating the data from multiple source systems and provides easy access information securely Classification: Restricted 18 Dr Lal PathLabs#20Scalable Model integrated through centralized IT & digital platforms allows for network expansion Integrated National Network... Network Expansion National Reference Laboratory No. of Clinical Laboratories* No. of PSCs 277 231 216 4,731 3,705 3,095 No. of PUPS 10,59 9 9,247 6,995 Regional Reference Laboratory FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Clinical Laboratories Patient Service Centers * Notes Includes National Reference Laboratory and Regional Reference Labs in Kolkata & Bengaluru Classification: Restricted • Includes 38 Labs, 177 PSC's and 983 PUP's of Suburban Diagnostics 19 Dr Lal PathLabs#21Attractive operating metrics No. of patients (Mn) No. of samples (Mn) Total Revenue (INR Cr.) Non-covid Revenue (INR Cr.) CAGR: 19% CAGR: 18% CAGR: 25% CAGR: 13% 27.3 1691 66.0 2087 19.4 20.3 1330 47.7 49.7 1581 1257 1330 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Consumer brand and Increase in samples with network expansion driving patient volumes patient volumes growth FY20 FY21 FY22 FY22 Revenues increased on account of : - Gains in patient volumes at 35% Non Covid Revenue growth CAGR at 13% Note: Results includes Suburban financials wef 12th Nov 21. On transition from IGAAP to IND AS, revenue adjusted as per IND AS 115. Classification: Restricted 20 Dr Lal PathLabs#22Robust financial performance Total Revenue (INR Cr.) CAGR: 25% 1581 1330 South Others India 7% 2% West Delhi & India NCR 2087 14% 34% Revenue by East Geography India (FY22) 15% FY20 FY21 FY22 • EBITDA*,PAT and Return on Net Worth (INR Cr./%) Normalised EBITDA* 365.6 227.6 Normalised PAT** 600.4 462.6 369.1 296.5 Rest of North India 28% FY20 FY21 FY22 EBITDA* Margin 27.5% 29.3% 28.8% Before ESOP & CSR Normalised 17.1% 18.7% 17.7% PAT Margin RONW 22.7% 25.4% 26.2% Growth driven primarily by increasing patient volumes and realization Increase in operating margin due to economies of scale and cost efficiencies * Normalised EBITDA excl. RSU, CSR **Normalised PBT & PAT excl. notional depreciation on consolidation of Suburban Classification: Restricted Note: Results includes Suburban financials wef 12th Nov 21. On transition from IGAAP to IND AS, revenue adjusted as per IND AS 115. 21 Dr Lal PathLabs#23Robust financial performance (Cont'd) Fixed Asset Turnover¹ Times 10.0x 10.2x 8.5x Cash and Cash Equivalents (INR Cr.) 580.0 926.6 278.8 164.3 59.3 65.5 • Self funded growth on account of strong cash flow generation • Attractive fixed asset turnover ratio given asset- light model • Current net cash position and internal accruals expected to fund next phase of growth FY20 FY21 FY22 FY20 FY21 FY22 1. Fixed Asset Turnover = Total Revenue / Net PP&E as per Ind AS Classification: Restricted Cash and Bank Balance Current Investments 22 Dr Lal PathLabs#24Dr Lal PathLabs Q4 & FY22 Highlights 4 & FY2#25FY22 Snapshot 32.0% INR 2087.4 Cr Revenues 34.5% INR 1691.3 Cr Non Covid Revenues Margin 34.7% 27.3 Mn 28.8% INR 600.4 Cr Patients Normalised EBITDA* 32.7% 66.0 Mn Margin 17.7% INR 369.1 Cr Samples Normalised PAT** *Normalised EBITDA excl. RSU, CSR **Normalised PAT excl. notional depreciation on consolidation of Suburban Note: Results includes Suburban Diagnostics 24 Dr Lal PathLabs#26Q4 FY22 Snapshot 12.7% INR 485.5 Cr Revenues 12.2% INR 419.7 Cr Non Covid Revenues Margin 13.2% 6.7 Mn 26.9% INR 130.7 Cr Patients Normalised EBITDA* 8.0% 16.3 Mn Margin INR 72.9 Cr 15.0% Samples Normalised PAT** *Normalised EBITDA excl. RSU, CSR **Normalised PAT excl. notional depreciation on consolidation of Suburban Note: Results includes Suburban Diagnostics 25 25 Dr Lal PathLabs#27Overview of Dr. Lal PathLabs Established brand Pan-India integrated coverage Varied Offerings Unique and successful operating model Established consumer healthcare brand in diagnostic services 277 clinical labs (including National Reference Lab at Delhi and Regional Reference lab at Kolkata), 4,731 Patient Service Centers (PSCs) and 10,599 Pick-up Points (PUPS)* Catalogue of 491 test panels, 2,675 pathology tests and 1,947 radiology and cardiology tests Scalable model integrated through centralised IT platform allows for network expansion Well-positioned in one of the fastest-growing segments of the Indian healthcare industry * Includes 38 Labs, 177 PSC's and 983 PUP's of Suburban Diagnostics As on March 31, 2022 Classification: Restricted 26 Dr Lal PathLabs#28Non-COVID, COVID & Allied Revenue Rs. Cr. Total 431 607 498 497 486 386 438 420 374 386 105 74 43 41 37 49 49 68 4 10 2 8 7 10 Q4 FY21 Q1 FY22 Q2 FY22 Non COVID ■COVID* ■COVID Allied 1** Q3 FY22 ■COVID Allied 2*** Q4 FY22 *COVID includes RTPCR and Antibody tests; **COVID Allied 1 includes IL-6 & D-Dimer; ***COVID Allied 2 includes CRP, Ferritin & LDH Total Covid and Covid allied contribution at 14% in Q4 FY22, 13% in Q4 FY21 Note: Revenue in Q4 22 includes Rs 46 Cr (Non Covid 29.4 Cr, Covid Rs 16.6 Cr) and Q3 22 includes Rs. 49.1 Cr (Non Covid 24.6 Cr, Covid Rs 24.5 Cr) of Suburban wef 12th Nov 21. On transition from IGAAP to IND AS, revenue adjusted as per IND AS 115. 27 Dr Lal PathLabs#29Key Performance Highlights • • . Q4 FY22 & FY22: Revenues up by 12.7% Y-o-Y to Rs. 485.5 crore in Q4 FY22. Revenue up by 32% to Rs 2087.4 crore in FY22 Normalised EBITDA* is Rs. 130.7 crore, margin of 26.9% in Q4 FY22. In FY22, Normalised EBITDA* is Rs 600.4 crore, margin at 28.8%. Normalised Profit After Tax** at Rs. 72.9 crore, margin of 15.0% in Q4 FY22, Normalised PAT** in FY22 is at Rs 369.1 crore, margin of 17.7% Net Cash and Cash Equivalents at Rs. 344 crore as on March 31, 2022 Witnessed strong trajectory in non-COVID business following ease of mobility restrictions across the country; growth in non-COVID business at 12.2% Y-o-Y Revenues from Non-COVID business at Rs 419.7 Cr with 'Swasthfit' contributing 18% Enhanced focus on driving volumes while maintaining prices; tactical penetration in West & South through modular cluster city approach playing out well. HUB lab program helping add revenue gains *Normalised EBITDA excl. RSU, CSR **Normalised PAT excl. notional depreciation on consolidation of Suburban Note: Results includes Suburban Diagnostics 28 Dr Lal PathLabs#30Financials Particulars (Rs. Cr.) Q4'22 Q4'21 Gr% FY'22 FY'21 Gr% Revenue 485.5 431.0 12.7% 2,087.4 1,581.3 32.0% Expenditure 364.5 308.9 1,526.7 1145.0 EBITDA 121.1 122.0 560.7 436.3 Stock based comp., CSR cost 9.6 7.5 39.7 26.3 Normalised EBITDA 130.7 129.5 0.9% 600.4 462.6 29.8% Normalised Margins 26.9% 30.1% 28.8% 29.3% Net other Income/ (Interest) 0.2 9.1 22.4 35.3 PBT 83.5 110.8 -24.6% 474.9 394.4 20.4% Margins 17.2% 25.7% 22.8% 24.9% PAT 62.1 85.1 -27.1% 350.3 296.5 18.1% Margins 12.8% 19.7% 16.8% 18.7% EPS (Basic) 7.41 10.10 41.70 35.33 Normalised PBT* 94.4 110.8 -14.8% 493.8 394.4 25.2% Margins 19.4% 25.7% 23.7% 24.9% Normalised PAT* Margins 72.9 15.0% 85.1 -14.3% 369.1 296.5 24.5% 19.7% 17.7% 18.7% *Normalised PBT & PAT are excl. notional depreciation on consolidation of Suburban Results includes Suburban financials wef 12th Nov'21. On transition from IGAAP to IND AS, revenue adjusted as per IND AS 115. Financial results of the Company are best monitored on a year to date basis, as there is a certain level of seasonality in business and specific quarter performance may be influenced by certain occurrences 29 in that quarter Dr Lal PathLabs#31Financial Highlights All figures in Rs. Crore Revenue Normalised EBITDA* Normalised PBT** Normalised PAT** Total & Non Covid 493.8 369.1 2,087.4 600.4 394.4 296.5 1691.3 462.6 1,581.3 1257.1 會 +32% +34.5% Margin Margin Margin 24.9% Margin 23.7% 29.3% 28.8% Margin 18.7% Margin 17.7% FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 Normalised EBITDA excl. RSU, CSR **Normalised PBT & PAT excl. notional depreciation on consolidation of Suburban Note: Results includes Suburban financials wef 12th Nov 21. On transition from IGAAP to IND AS, revenue adjusted as per IND AS 115. Financial results of the Company are best monitored on a year to date basis, as there is a certain level of seasonality in business and specific quarter performance may be influenced by certain occurrences in that quarter 30 Dr Lal PathLabs#32Management Commentary on results Commenting the announcement, (Hony) Brig. Dr. Arvind Lal, Executive Chairman said: "India remains a largely underserved market for diagnostics. The scope for growth for companies like ours is huge and we want to leverage our position as a leading player. At Dr. Lal PathLabs, we see ourselves as a progressive brand and have been at the forefront of integrating technology into our business model. This helps us reduce costs as well as provide a more seamless and cohesive experience to our patients. We continue to invest in latest technologies across medical science and patient service in line with out vision of being the most trusted healthcare partner" Commenting announcement, on Dr. Om Managing Director said: the results Manchanda, "The acquisition of Suburban Diagnostics has brought Dr. Lal PathLabs brand to the heart of Western market i.e., Maharashtra. And we will work with the Suburban team to leverage the joint expertise and capabilities to create best- in-class proposition and deliver top notch patient experience. We have demonstrated strong growth in this quarter, which is likely to continue as we realise our growth aspirations in various regions across the country. With one of the strongest digital presence in the Indian diagnostics and healthcare industry, we are well placed to reach more patients and offer them accurate diagnostics at affordable costs." " on results Commenting the announcement, Mr. Bharath Uppiliappan, Chief Executive Officer said: "Q4 FY22 started off well, however, the onset of Omicron wave in early part of the quarter impacted Non Covid business which recovered only in second half of the quarter. Our strategic initiatives leveraging digital on patient service levels, geography/tests expansion and channel capability building continue to make good strides. This will enable us to maintain our leadership position for the times to come" 31 Dr Lal PathLabs#33Shareholding as of 31st March, 2022 27.1% FIls, FPIS, Foreign Company & NRIs 13.2% Others 4.5% Mutual Funds* *Mutual Funds includes Alternate Investment Funds as well 32 55.2% Promoter and Promoter Group Dr Lal PathLabs#34Dr Lal PathLabs DLPL Strategy for future growth#35Vision, Mission & Values Be the most trusted healthcare partner, enabling healthier To be an undisputed market leader by providing accessible, affordable, timely and quality healthcare, diagnostics, applying insights and cutting-edge technology to create value for all stakeholders VISION lives VALUES MISSION Customer First Ethics & Integrity Quality Accountability Empathy & Compassion 34 Dr Lal PathLabs#36Vibrant Outlook Emphasis on digital native approach at front as well as back end Target to grow ahead of the industry Strongly develop Rest of India geographies, through Regional Reference Labs, Hub Labs and cluster city approach for attractive markets Deeper Penetration within the North, East, West & Central Indian markets Higher contribution from bundling of tests - 'Swasthfit' Evaluate best fit inorganic opportunities in South, and leverage expertise of recently acquired Suburban brand in West 35 Dr Lal PathLabs#37DLPL Strategy for future growth Strengthen Existing Operations Geographic expansion 04 H0 01 TO 03 02 Expansion in Offerings 808 Customer centric approach 36 Dr Lal PathLabs#38• • • DLPL Strategy for future growth Improve breadth of diagnostic testing Cutting edge technology Preventive healthcare screening Chronic & Lifestyle disease mgmt. services • Expand reach in corporate segment • Focus city & cluster approach • • Set up more clinical laboratories Creating network of Hub labs Consider alliances and acquisitions Classification: Restricted С Strengthen Existing Operations Expansion in Offering • Boosting quality & reliability standards • Improving turnaround times for testing • Online initiatives and data analytics • 808 • Customer centric approach Geographic expansion Investment in branding Multi-channel touch-points Quality of service parity for walk-ins/home collections 37 Dr Lal PathLabs#39Consistent investments in R&D DSIR recognized In House R&D unit with an experienced team of research scientists and doctors SEIENTIFIC & TRIAL RESEARCH GOVT. OF IN INDUST DSIR RECOGNIZED RECOGNITION FOR IN-HOUSE R&D 07 R&D Collaboration जवाहरलाल नेहरू विश्वविद्यालय Jawaharlal Nehru University Jawaharlal Nehru University for development of diagnostics kit for detection of mycobacterium tuberculosis and mycoabacterial species with marquee institutions CSIR-Institute of Genomics and Integrative Biology for acquisition of know-how for 27 diagnostic assays IG B INSTITUTE OF GENOMICS & INTEGRATIVE BIOLOGY Genomics Knowledge Partner Sanger Sequencing, Single Variant Sickle Cell Trio Prenatal Mutation Detection Successful commercialization of tests Leigh Syndrome Mitochondrial Mutation Detection Spino-Bulbar- Muscular Atrophy Episodic Ataxia Type 2 38 Dr Lal PathLabs#40Genevolve: The Genomics initiative • GENEVOLVE- Genetic Testing Your Smart Choice We are celebrating our 2 nd Anniversary- MIX GENEVOLVE Dr Lal PathLabs genetic TESTING YOUR SMART CHOICE Genevolve: Genomics division focuses on Genetic testing Offers wide range of key tests related to Oncogenomics, Neurogenomics, Rare disease & Pre- natal/Post-natal Tests are carried out using cutting edge technologies such as Next Generation Sequencing (NGS), MLPA, ddPCR, FISH & Sanger Sequencing among others New Tests 63 New Test Launched- Oncogenomics & Neurogenomics New Tie-ups I . Caris Inc. (USA) • Foundation Medicine • Novartis • • ONCOPATH Leaders in Oncopath In-House Testing Capabilities PAN India network of clinical laboratories, collection centers and pick-up points makes Dr. Lal PathLabs the most reliable genetic testing service provider in India Widest test range solutions for Cancer- Hematological Malignancies, Solid Tumor including multigene panels, Molecular Profiles & Panels in combinations with IHC 39 Dr Lal PathLabs#41In-house adoption of Digital Histopathology Reporting of Digital Breast cancer Panels using Al based algorithms Digital Histopathology for remote routine reporting Opportunities created by Digital Histopathology • Enhanced access to second opinion, synchronous review of slides • Enhanced quality of reporting • Potential for insourcing services • Leveraging Artificial Intelligence for Histopathology • Potential for de-centralization of histopathology reporting Classification: Restricted 40 Dr Lal PathLabs#42Highest Quality Standards in the Industry Best in the Industry CAP Proficiency Testing Score at 97.9% for National Reference Lab Consistently high EQAS Performance Testing Score at 98.6% for Satellite Labs NABL Accreditation granted to 18 Labs for processing Covid-19 samples Real time quality control monitoring Risk based quality assurance framework 100+ Quality improvement meetings on a daily basis with the network partners Digitally enabled solutions implemented for quality audits and trainings As on March 31, 2022 41 Dr Lal PathLabs#43Best in class Logistics and Supply Chain management 1000 Dr Lal PathLabs Real time sample Real time Field Executive tracking tracking Automated Cash collection process with clients Productivity and route planning visibility Real time service monitoring Control tower 42 Dr Lal PathLabs#44Enhanced Customer Experience in Home Collection Real time slot confirmation to patient Within 1 hr guaranteed on demand service Auto Routing engine to dynamically allocate the booking to nearest available phlebotomist Enabled Franchisees for Home Collection Variable model which grows with business volume Automated and scalable system 26 Dr Lal PathLabs#4511TH Key Awards & Recognition INDIA CSR AWARDS RECOGNISING EXCELLENCE CORPORATE SOCIAL RESPONSIBLITY CSR Award 2022 Business Standard Star SME of the year 2022 GAPIO Global Association of Physicians of Indian Origin FECFO awards MCFO 10 rec 2022 GAPIO Excellence in Diagnostics Award 2022 Financial Express CFO of the year 2022 CFO100 Roll of Honour 2022 1HEALTHCARE EXCELLENCE AWARDS 2020 12TH EDITION 29th September, 2020. INSPIRE CHANGE TOGETHER verb FICCI Dr. Om Manchanda honoured and awarded as 'Healthcare Personality of the Year, 2020' by FICCI - INDIA FISK MANAGEMENT AWARDS ICICI Lombard & CNBC TV18 India Risk Management Awards 2022- Healthcare Ernst & Young Entrepreneur Of The Year" EY Entrepreneur of The Year 2019 - Life Sciences & Healthcare DATAQUEST VCCIRCLE COMPUTERWORLD FROST SULLIVAN FRANCHISE INDIA Ideas For Tomor Data Quest Technology Award 2015 Excellence in Implementation of Technology VC Circle Healthcare Summit 2013- Best Diagnostic Company Computerworld Honors Laureate Program, 2012 Frost and Sullivan 4th Annual India Healthcare Excellence Award, 'Diagnostic Service Provider Company of the Year 2012' Franchise India Excellence Award in Hall of Fame Category (2011, 2012) Franchisor of the Year (Healthcare) - Franchise Plus Awards 2010 Padma Shri- (Hony) Brig. Dr. Arvind Lal (2009) 44 Dr Lal PathLabs#46Contact Us About Dr. Lal PathLabs Limited (DLPL) Dr. Lal PathLabs Limited is one of India's leading consumer healthcare brand in diagnostic services. It has an integrated nationwide network, where patients and healthcare providers are offered a broad range of diagnostic and related healthcare tests and services for use in: core testing, patient diagnosis and the prevention, monitoring and treatment of disease and other health conditions. The services of DLPL are aimed at individual patients, hospitals and other healthcare providers and corporates. The catalogue of services includes 491 test panels, 2,675 pathology tests and 1,947 radiology and cardiology tests as on March 31, 2022. As on March 31, 2022, DLPL's has 277 clinical labs (including National Reference Lab at Delhi & Regional Reference Lab at Kolkata), 4,731 Patient Service Centers (PSCs) and 10,599 Pick-up Points (PUPs). In FY21 & FY22, DLPL collected and processed approximately 49.7 million samples and 66 million samples from approximately 20.3 million and 27.3 million patients, respectively. Additional information on Dr. Lal PathLabs Limited: Corporate Identification No: L74899DL1995PLC065388 Website: https://www.lalpathlabs.com For further information please contact: Ved Goel / Rajat Kalra Dr. Lal PathLabs Limited Tel: +91 124 301 6500 Fax: +91 124 423 4468 E-mail: [email protected]/[email protected] Siddharth Rangnekar / Nishid Solanki CDR India Tel: +91 22 66451209/1221 Fax: +91 22 66451213 Email: [email protected]/[email protected] 45 Dr Lal PathLabs