#1Updated Apr 2013 RANBAXY Trusted medicines.Healthier lives Investor Presentation 2013#2Safe Harbor Forward Looking Statements Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward- looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. Ranbaxy does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. RANBAXY Trusted medicines.Healthier lives 2#31 Overview 2 3 Global Presence Organizational Priorities Gx Business Advantages Business, R&D & Manufacturing RANBAXY Trusted medicines.Healthier lives Mission Key Milestones Overview Mission Key Milestones 4 Daiichi Sankyo Partnership 5 Corporate 6 Past Financials Governance Shareholding Share Performance Long Term Value Drivers Challenges & Opportunities Pattern CSR 3#4Overview Ranbaxy is an innovation driven Generics Company 1/2 Innovation, science focused Generics Company Innovative products developed on platform of diverse technologies coupled with analytical capabilities Growth focus: (1) Focus on building Branded Generics business, worldwide (2) Leverage Ranbaxy's strong presence in, growing Emerging Markets (3) Continue to create niche/ exclusive opportunities SCIENCE OTOLIBRARY RANBAXY Trusted medicines.Healthier lives 4#5Overview Pioneer in the Indian Pharma market with competitive advantages at a global level Unique Advantages Vertically Integrated Global Presence • Entrepreneurial & empowering culture • Strong presence in Emerging Markets • Global regulatory prowess • Synergies with Daiichi Sankyo through the Hybrid Business Model • R&D • Strength in technology •1,100+ R&D Personnel with over 75% are qualified scientists • Demonstrated NDDS capabilities ⚫ Manufacturing: DF and API • Manufacturing locations in 8 countries across the globe • Amongst the top global Gx companies • Sales in over 150 countries • 2012 Sales: over $2.3 Bn • ~80% International • Ground presence in ~40. countries Global team with expertise in multiple markets • 14,000 employees; over 50 nationalities |RANBAXY Trusted medicines.Healthier lives 5 2/2#6Mission Enriching lives globally, with quality and affordable pharmaceuticals Mission Enriching lives globally, with quality and affordable pharmaceuticals. Tagline Trusted medicines. Healthier lives. RANBAXY Trusted medicines.Healthier lives 6#7Key Milestones Ranbaxy has been a trendsetter_for the Indian Pharma Industry 2012 2011 2009 2008 Launched First New Drug from India, Synriam TM, a new age cure for Malaria Arteline Malate and Fiperapute Prophete Tablets Synriam Launched Gx LipitorⓇ, largest pharma product in the world. Crossed $2 Bn in Global Revenue Executive Leadership reconstituted for transition to professionally managed company Hybrid business model with Daiichi Sankyo Daiichi-Sankyo 2004 Crossed $1 Bn in Global Revenue 2001 1998 -Launched its first Para IV product - Cefuroxime Axetil Enters the world's largest Phamra market Crossed Sales of $200 Mn (Rs.1,000 Cr) 1997 with exports over $100 Mn (Rs.500 Cr) 1978 First major step for becoming an MNC. Set up a JV plant in Nigeria 1973 Ranbaxy goes public and was listed subsequently 1961 Ranbaxy incorporated in India $1 = Rs. 50 |RANBAXY Trusted medicines.Healthier lives 7#81 Overview 2 3 Global Presence Organizational Priorities Gx Business Advantages Business, R&D & Manufacturing RANBAXY Trusted medicines.Healthier lives 4 Mission Key Milestones Global Presence Gx Business Advantages 5 Corporate 6 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Performance Pattern CSR Long Term Value Drivers Challenges & Opportunities 8#9Global Presence Ground presence in ~40 countries and products sold in over 150 countries Canada United Kingdom Latvia Lithuania Ireland Germany Netherlands France Poland Ukraine Romania Kazakhstan Spain USA Portugal Italy Bulgaria Peru Brazil Morocco Senegal Russia China Egypt UAE Nepal Myanmar — Hong Kong India Thailand ⚫Vietnam Nigeria Cambodia Sri Ivory Coast Lanka Cameroon Malaysia Kenya Zambia Zimbabwe Mauritius South Africa Australia Mohali SEZ, India is the latest manufacturing facility to receive USFDA approval RANBAXY Trusted medicines.Healthier lives 9#10Sales Breakup Across Geographies Ranbaxy is focused on developing Branded Gx in Emerging Market; sales are well distributed across Developed and Emerging markets CY 2012 As a % of Region/Business ($ Mn) Total North America 1,011 44% India Incl. SL 409 18% Eastern Europe + CIS 250 11% Developed Markets Western Europe 178 8% APAC + ME 107 5% Africa 177 8% LATAM 41 2% API + Others 138 6% Total Sales 2,312 100% Emerging Markets Emerging markets contribute ~60% of total DF sales excluding FTFs RANBAXY Trusted medicines.Healthier lives 10#11Generics Business Advantages Governments across the world are promoting Gx; a unique advantage for larger Indian players • Patent Expiries • Low Gx penetration • Control increase in healthcare costs Availability of large scientific talent pool • Cost advantage Gx/Rx competencies • Size & scale • Therapeutic width • Operational synergies Growth potential India Factor Consolidation Product Portfolio • Ever-growing array of Gx • Move to Specialty/Niche RANBAXY Trusted medicines.Healthier lives 11#121 Overview 2 3 Global Presence Organizational Priorities Gx Business Advantages Business, R&D & Manufacturing RANBAXY Trusted medicines.Healthier lives 4 Mission Key Milestones Daiichi Sankyo Partnership Organizational Priorities Business, R&D & Manufacturing 5 Corporate 6 Past Financials Governance Shareholding Share Performance Long Term Value Drivers Challenges & Opportunities Pattern CSR 12#13Ranbaxy Organizational Priorities Build a sustainable, profitable & growing business across the world based on quality Business • Focus on sustainable, profitable growth in base business • Successfully monetize high value opportunities R&D and Manufacturing • R&D to be innovative, competitive and commercially viable ⚫ Deliver service excellence and enhance productivity/ capability Quality Effectively fulfill Consent Decree obligations Highest standard of compliance Focus on Quality . 7 8 9 9 8 7 RANBAXY Trusted medicines.Healthier lives 13#14Business 1/2 Focus on sustainable, profitable growth in base business and capitalize on high value opportunities Business • Focus on sustainable, profitable growth in base business • Successfully monetize high value opportunities in Developed markets Base Business Strengthen business across Emerging Markets/Invest in growth . India (sales growth faster than Indian Pharmaceutical Market in 2011) -First Indian Company to launch an NCE: Anti- malaria molecule for P. Falciparum Malaria. - Strengthen under-represented market segments. - Focus on consolidation of products launched and productivity of field force. Eastern Europe & CIS focus, Africa - Build on Branded Gx and OTC businesses High Value Niche/Exclusive Product Leverage and monetize on high value opportunities in Developed Markets • FTF's post exclusivity FTFs • Products with High value exclusivity RANBAXY Trusted medicines.Healthier lives 14#15Business Focused approach on high Emerging and value added markets Emerging Market/ Brand Focus • India • Malaysia South Africa • Nigeria • Morocco • Egypt • Romania • Poland • Russia . Ukraine • Brazil • Venezuela • Mexico 2/2 Developed/Opportunity Market Focus • Canada • USA • • W. Europe • Scandinavia Australia • New Zealand • Japan Market Growth Rate 5% 15% Pharma/ Emerging Market Developed Market Emerging markets expected to grow 3 times faster than Developed markets Focused approach on Brand building and monetization of market opportunities RANBAXY Trusted medicines.Healthier lives 15#16Americas USA has the largest generic market worldwide and is amongst the most important markets for Ranbaxy • USA Market size is $325 Bn in 2011; growth ~4% pa. • USA has the largest generic market worldwide. Significant patent expiries through 2015 in the USA. Ranbaxy pioneered USA market entry from India; the Company now has strong presence in the country. ⚫ Pioneer in having filed ANDAS in the country. • Focus on monetizing on FTF franchise and growing differentiated product mix for more profitable business. ORDEM • Sizable Brazil presence. • Ranked 8th Gx player in Canada. RANBAXY Trusted medicines.Healthier lives 16#17European Union Present in almost all the EU countries. Ranbaxy is ranked No.1 in its represented segment in Romania • Size of EU pharma market is $140 Bn with marginal growth of 2%. • West Europe has slowed down while East Europe is an emerging Pharma market. • West Europe is a bottom line focus market for Ranbaxy. • Focus is on profitability, not just market share. • East Europe is a growth market. • Russia is a growth market for Ranbaxy. • Ranbaxy is a leading Gx + OTC player in Romania. • Sales Grown as high as double digits. Manufacturing facility in Romania. RANBAXY Trusted medicines.Healthier lives 17#18India Ranbaxy has been a pioneer in the domestic market; key market for Ranbaxy Indian Pharma Market (IPM) is amongst the larger markets in the world with turnover of ~$13 Bn and growth rate of more than 13-14% pa. Ranbaxy is amongst the largest Pharma companies in India. Jes 1 . • Ranbaxy has been a pioneer in the IPM. Therapy mix reflects the IPM with Acute therapy contribution ~70%+ of total business, Chronic the rest. • Focus is on growing productivity and development of brands. . Large distribution networks that comprises over 5,000 field force. • Nine brands in Top 100 Indian medicine list. |RANBAXY Trusted medicines.Healthier lives 18#19APAC (excluding India) & Africa APAC and Africa are growth markets for the Company • Strong, growing presence in APAC ex India. • Manufacturing facility in Malaysia. • First company to launch generic Lipitor in Australia. Capitalize on DS's strengths in China, Japan & South Korea to claim high market share. • DS will be the front for Generic drugs from Ranbaxy in Japan. • Amongst the largest players in Africa with presence in over 40 countries. • Large presence in South Africa, Nigeria etc. Manufacturing in 3 countries in the region. RANBAXY Trusted medicines.Healthier lives 19#20Research & Development: Overview Ranbaxy has an attractive portfolio of ANDAs and FTF pipeline Amongst the highest R&D spend in Indian Cos. Investment R&D Expense $ Mn 140 127 8.0% 120 110 104 7.0% 97 98 93 100 7% 6.0% 80 6% 6% 6% 5.0% 60 5% 4.0% 40 4% 20 3.0% 0 2.0% 2007 2008 2009 2010 2011 2012 R&D Expense $ Mn R&D Expense % of sales Over 1,100 R&D personnel with post graduate and scientific background People Dedicated facility for Gx Research Infrastructure Amongst the highest number of regulatory submissions on a cumulative basis internationally Amongst the most attractive FTF pipeline in the industry → Ability to monetize FTF opportunities in the past RANBAXY Trusted medicines.Healthier lives 20#21Research & Development Focus on differentiated product development and improve productivity Continue to work on better technologies & capabilities Strengthen processes, improve productivity Quality by Design Differentiated product development → e.g. Isotretenoin Work towards global leadership on key products RANBAXY Trusted medicines.Healthier lives 21#22Manufacturing Manufacturing facilities in 8 countries including Developed and Emerging markets serve larger market requirements; Utilization and productivity improvement to drive performance • . USA Romania Ireland Malaysia India South Africa Nigeria Morocco Optimum capacity utilization and productivity improvement CGMP compliant world-class API and DF manufacturing facilities in Developed and Emerging Markets Plan for manufacturing in strategic locations and based on local strategies and compulsions Create flexibility in manufacturing Highest standards of compliance; concern for safety and environment Quality by Design RANBAXY Trusted medicines.Healthier lives 22#231 Overview 2 3 Global Presence Organizational Priorities Mission Key Milestones Gx Business Advantages Business, R&D & Manufacturing RANBAXY Trusted medicines.Healthier lives 4 Daiichi Sankyo Partnership Daiichi Sankyo Partnership 5 Corporate 6 Past Financials Governance Shareholding Share Performance Long Term Value Drivers Challenges & Opportunities pattern CSR 23#24Daiichi Sankyo Partnership: Strategic Synergies Ranbaxy-Daiichi Sankyo synergies run across the entire value chain of each Company Innovator Company Daiichi-Sankyo 1. Access to high growth, high volume markets 2. Access to low cost R&D and Manufacturing RANBAXY Generic Company 1. Access to advanced competencies and capabilities 2. Access to proprietary products Hybrid Business Strategic combination creates an Innovator and Generic Pharmaceutical Powerhouse 'Global Hybrid Business Office' ensures sustained operational and strategic synergies across the globe RANBAXY Trusted medicines.Healthier lives 24#25Daiichi Sankyo Partnership: Functional Synergies Hybrid Business Model: Some examples of synergies delivered thus far Annual Report 2013 Consolidate. Strengthen. Grow. RANBAXY R&D: Innovative products Cost effective processes SCM & Procurement: Working out Global supply chain synergies Manufacturing: API: Availability & Cost efficiency DF: Availability to DS Espha and DS Front end Marketing: Authorization for DS products in various countries being shifted to Ranbaxy & vice versa Dutch-Sankyo Strategic Moves RANBAXY Trusted medicines.Healthier lives 25#26Daiichi Sankyo Partnership Hybrid Business Model: Examples of marketing synergies Mexico/ 2011: DS to be front-end for the business Romania/2009/10: Launched EvistaⓇ, TavanicⓇ Thailand/2013: DS to be front-end Gx & Brand business Japan/2010: DS to be front-end for the business Malaysia/Singapore/ 2011: Launched CravitⓇ, DS products Daiichi Sankyo Ranbaxy Daiichi Sankyo and Ranbaxy DS to lead Ranbaxy to lead Germany/2012: Launched Atorva in synergetic arrangement with DS Germany Italy/2011: To promote DS products to pharmacies Africa/ Dec 2009: Ranbaxy to lead marketing & distribution South Africa 2010: Tavanic® India/2009/10: Ranbaxy launched Ovlance®, (anti- hypersensitive), Prasugrel® RANBAXY Trusted medicines.Healthier lives 26#271 Overview 2 3 Global Presence Organizational Priorities Mission Key Milestones Gx Business Advantages Business, R&D & Manufacturing RANBAXY Trusted medicines.Healthier lives 4 Past Financials Share Performance Corporate 5 6 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Performance Pattern CSR Long Term Value Drivers Challenges & Opportunities 27#28Key Financial Numbers and Ratios Past financial performance 4 yr ($ Mn) 2009 2010 2011 2012 CAGR Net Sales 1,519 1,868 2,112 2,310 15% EBITDA 121 402 335 353 42% EBITDA Margin 8% 22% 16% 15% EBT from ordinary activities 131 399 218 288 30% EBT from ordinary activities as a % of sales 9% 21% 10% 12% R&D Expense 98 127 104 93 R&D Expense/Sales% 6% 7% 5% 4% Debt/Equity Ratio 1.6 1.3 1.5 1.1 RANBAXY Trusted medicines.Healthier lives 28#29Share Price Performance Ranbaxy share movement vis-à-vis Sensex 21,000 20,000 19,000 18,000 17,000 16,000 15,000 Ranbaxy share price and Sensex 600 2/4/2012 11/5/2012 19/06/2012 26/07/2012 5/9/2012 -BSE Sensex L.H.S تر 15/10/2012 23/11/2012 Ranbaxy R.H.S 3/1/2013 11/2/2013 20/03/2013 550 500 450 400 350 RANBAXY Trusted medicines.Healthier lives Rs./Share 29#30Organizational Priorities Business, R&D & Manufacturing 1 Overview 2 3 Global Presence Gx Business Advantages RANBAXY Trusted medicines.Healthier lives Mission Key Milestones Corporate Governance Shareholding Pattern CSR 5 4 Daiichi Sankyo Partnership Past Financials Share Performance 60 Long Term Value Drivers Challenges & Opportunities Corporate Governance Shareholding Pattern CSR 30#31Corporate Governance Robust corporate governance system monitors and controls the internal functioning of Ranbaxy The institutionalized framework of Corporate Governance and Code of Reporting and Disclosures Practices strengthen decision making and compliance with ethical integrity and reliability Code of Conduct Board procedures Various sub- committees of the Board internal Audit Department Internal Control Legal Compliance Framework External Auditor RANBAXY Trusted medicines.Healthier lives 31#32Non-Independent Directors Board of Directors The Board of Ranbaxy has a mix of diverse experience and strong Independent Directors Dr. Tsutomu Une, Chairman 1970: Joined Daiichi. 1999: Inducted on Daiichi's BoD. 2002-06: Served as Daiichi's MD. Mr. Arun Sawhney, CEO& MD Chairman of FICCI Pharma. Committee. Founding member of Pharmaexcil. 30yrs of international experience. Mr. Takashi Shoda 2001: Director of Board of Sankyo. 2005-10: CEO & President of DS. Current Chairman of DS. Dr. Kazunori Hirokawa 2007: Head R&D, DS. 2010: Director of Board of DS. 2012: Head Corporate Strategy. Independent Directors Dr. Anthony H. Wild Till 2007: Chairman of Med Pointe. Has held senior leadership positions in Innovator companies. Mr. Rajesh V. Shah Co-Chairman and MD, Mukand. Has served as President of CII and on the Boards of ONGC, HPCL. Mr. Akhiro Watanabe Over 25 yrs exp in M&A advisory. Ex-Partner at KPMG Corp Fin. Advised on over 1,000 transactions. Mr. Percy K. Shroff 1997: MD-India Head of Elekta Instrument. Current Non-executive Chairman of Elekta Medical Systems. RANBAXY Trusted medicines.Healthier lives 32#33Sub-Committees under the Board of Directors A robust Corporate Governance system in place Audit Committee Other Sub- Committees Includes 4 Independent Directors, Chairman and MD Reviews Financials; Oversees Financial Reporting processes Reviewing Internal Audit Function's plans and reviewing efficacy of the function Discuss and review periodic audit reports Reviews, with the management, application of funds raised . Compensation Committee: To align executive compensation to shareholder value generation Science Committee: Oversees focus on R & D activities Shareholder/investor Grievance and Share Transfer Committee: Internal Control Framework • To ensure compliance of Clause 49 of Listing Agreement by SEBI Optimum composition of Exec. and Non-exec. Directors in BoD Disclosure of Board Procedures; Compliance of Code of Conduct Review of risk assessment and minimization procedures RANBAXY Trusted medicines.Healthier lives 33#34Shareholding Pattern Ranbaxy shareholders are primarily large institutions Fls, 8% Public, 13% GDR, 2% Others*,1% Mutual Funds, 2%- Fils, 11% Daiichi Sankyo Company, Limited, 64% Others include Non Residents and NDCO's as on 30th March, 2013 RANBAXY Trusted medicines.Healthier lives 34#35Corporate Social Responsibility Social Commitment and Public Service is deeply embedded into the cultural fabric of Ranbaxy 'Ranbaxy Community Health Care Society' set up in 1978; earlier known as Ranbaxy Rural Development Trust CSR covers areas of maternal child health, family planning, adolescent health, reproductive health and education Operate in north-central states of India including Punjab, Haryana, Himachal Pradesh & Madhya Pradesh Public Private Partnership (PPP) with the Punjab State Government, to deliver healthcare services in identified districts of Punjab AIDS awareness and counseling, Provides affordable anti HIV medicines; over 500,000 patients worldwide benefitted Partners with Government, Medical Colleges, NGO's, Educational Institutions, CII etc. on CSR यसेव RANBAXY CARES! RANBAXY COMMUNITY HEALTH CAR S Mobile Health Care Dewas M.P. RANBAXY Trusted medicines.Healthier lives 35#361 Overview 2 3 Global Presence Organizational Priorities Gx Business Advantages Business, R&D & Manufacturing RANBAXY Trusted medicines.Healthier lives 4 Mission Key Milestones Long Term Value Drivers Challenges & Opportunities 5 Corporate 6 Past Financials Governance Daiichi Sankyo Shareholding Partnership Share Performance Pattern 7 Long Term Value Drivers Challenges & Opportunities CSR 36#37Long term value drivers Continued Sustainable profitable growth Branded Generics Focus Sustainable profitable growth • Create brands •Re-align structure; focus on larger, differentiated market Leadership in key, chosen molecules End to end strength in key, chosen molecules • End to end dominance in key, chosen molecules • Product focus and market emphasis Expand scale in focus markets Unrestricted market access with appropriate risk control measures • Build capabilities wherever required • Invest in new capacities in growth markets: Nigeria, Malaysia etc. • Evolve innovative models to address various market demands RANBAXY Trusted medicines.Healthier lives 37#38Challenges & Opportunities Sustainable profitable growth Opportunities Invest in growth: brands and markets Re-focus on: efficiency, productivity and utilization Challenges Government policies: e.g. CIS, Europe Consent decree and optimum utilization of capacities RANBAXY Trusted medicines.Healthier lives 38#39RANBAXY Trusted medicines.Healthier lives Contact Details Investor Relations Ranbaxy Laboratories Limited Plot # 90, Sector 32 Gurgaon, Haryana, 122001. Email: [email protected] Phone: +91-124-413-5208 NSE: RANBAXY BOM: 500359 Reuters: RANB.NS/RANB.BO Bloomberg: RBXY:IN Website: http://www.ranbaxy.com Thank You Some of the major Analysts Tracking Ranbaxy Barclays Citigroup Daiwa HSBC ICICI Securities Morgan Stanley Nomura SBI Capital Markets