#1車 Granules India Limited Investor Presentation August 2023 GRANULES Transforming Healthcare through Innovation and Sustainability#2Safe harbour The Presentation is to provide the general background information about the Company's activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any investor should subscribe / purchase the company shares. The Company makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information contained herein. This presentation may include certain "forward looking statements". These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties which could cause actual outcomes and results to differ materially from these statements. Important factors that could cause actual results to differ materially from our expectations include, amongst others general economic and business conditions in India, ability to successfully implement our strategy, our research and development efforts, our growth and expansion plans and technological changes, changes in the value of the Rupee and other currencies, changes in the Indian and international interest rates, change in laws and regulations that apply to the Indian and global pharmaceuticals industries, increasing competition, changes in political conditions in India or any other country and changes in the foreign exchange control regulations in India. Neither the company, nor its directors and any of the affiliates or employee have any obligation to update or otherwise revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without prior written approval from Granules India Limited. 2#3Company overview About Us Granules India is a vertically integrated, high-growth pharmaceutical company with 38 years of proven performance and increasing presence across the world. Headquartered in Hyderabad, India, Granules offers collaborative and strategic partnership to global pharmaceutical leaders by producing best quality API, PFI and FD through manufacturing excellence, process innovation and regulatory expertise Business Verticals Vertically integrated across value chain FD PFI ΑΡΙ Global Reach 80+ countries 300+ customers 60+ ANDA filings Top 5 products Paracetamol Metformin Ibuprofen Guaifenesin Methocarbamol Establishment in 1984 @ R&D Inaugurated a new 20,000 sqft state of the art R&D facility at Genome Valley with more than 170 scientists across both divisions Manufacturing Base 8 facilities; 6 in India, 2 in US (1 is packing unit) One of the world's largest paracetamol API facilities World's largest PFI facility One of the largest single-site FD facilities Installed Capacity 39,360 TPA of API 24,640 TPA of PFI 28.3 Bn dosages of FD Regulatory Approvals USFDA, EDQM, EU GMP, COFEPRIS, WHO GMP, TGA, KFDA, DEA, MCC, HALAL People Strength 5,000+ people 90+ people at GPI, Chantilly, USA 3#4Our journey so far.. Formative years with focus on APIs Global footprint, Established dominance in Core APIs + PFls, Entered Finished dosages space Expanding into complex generics + Strengthening market penetration in regulated markets Moving towards complex technology 1984 1990 1991 1993 1995 2001 2002 2003 2005 2008 2010 2013 2014 2014 2015 2016 2019 2021 2022 2022 2023 Established first PFI facility at Listed on the BSE Incorporated Jeedimetla Entered the Finished dosage segment Acquired API manufacturing facility in Vizag to further strengthen the API portfolio Granules India Private Limited Opened 2nd API facility in Merger of Triton with Granules New Paracetamol plant at Bonthapally Established 15,000 sqft R&D facility in Jeedimetla Listed on the Hyderabad Stock Exchange Hyderabad Received USFDA Granules formed as Triton Labs to produce Paracetamol API at Bonthapally Set up a large-volume PFI facility in Gagillapur and a wholly owned subsidiary Granules - USA for marketing in the US Laid down the foundation for its Oncology API and OSD Plant in Vizag Acquired Sajjla Bio Labs to augment Biotechnology R&D Setup GPAK, a 79,000 sqft packaging facility in the US Entered OTC business in US through Granules Consumer Healthcare Setup the largest single manufacturing site for MUPS facility approval for its first ANDA Incorporated Granules Pharmaceutical Inc in the US to focus on formulations in the US Commenced sale of Rx Products in the US under the GPI Label Completed share buy- back worth Rs.311 Cr (including taxes and transaction cost) 4 4#5Our manufacturing footprint Manufacturing Units ► Bonthapally, Telangana ► Jeedimetla, Telangana API ► Vizag (Unit IV), Andhra Pradesh ►Vizag (Unit V), Andhra Pradesh ► Bonthapally II (API Intermediate, Telangana) ► Gagillapur, Hyderabad ► Jeedimetla, Telangana Capacity ▸ 34,560 TPA 4,800 TPA 380 KL 15 KL ‣ 61.5 KL 23,200 TPA ➤ 1,440 TPA Regulatory Approvals ► U.S. FDA, EDQM, WHO, COFEPRIS, INFARMED ‣ U.S. FDA, EDQM, COFEPRIS, WHO, CDCSO ► U.S. FDA, KFDA, EU GMP, WHO GMP, EDQM ▸ EU GMP ► US FDA, COFEPRIS, TGA, MCC, INFARMED WHO GMP, COFEPRIS, INFARMED PFI FD Packaging Gagillapur, Hyderabad ► Virginia, USA ► Vizag (Unit V), Andhra Pradesh ►Virginia, USA 26.8 Bn 1.5 Bn ▸ 1.1 Bn ► 2 OTC lines and 1 Rx line ► US FDA, MCC, COFEPRIS, TGA, INFARMED ‣ US FDA, DEA ▸ EU GMP ‣ US FDA 5#6R&D Capabilities Strengthened headcount to ~300 across spectrum of R&D centers with complementary capabilities 0 Integrated Product Development Genome Valley - MN Park R&D facility for Integrated Product Development ▪ ~170 scientists across API & FD R&D Fast tracking product development through seamless coordination & shared analytical resource Controlled Substances Pragathi Nagar R&D CoE for CII API Development Select KSMs GPI R&D Cll Finished Dosage Complex technologies FD ☐ New Technologies Bio Lab at Pragathi Nagar Enzyme & Fermentation Pune R&D New technologies KSM & Backward Integration 6#7Our Geographic footprint: Revenue share (FY23) North America 58% Latin America 8% RoW 6% Europe 23% India 6% 7 7#8Our Leadership team: Management Committee C Krishna Prasad Chairman and Managing Director Dr. K.V.S. Ram Rao Joint Managing Director & Chief Executive Officer Uma Devi Chigurupati Executive Director Priyanka Chigurupati Executive Director of GPI and GUSA Mukesh Surana Chief Financial Officer Uma Rao G PV Srinivas Chief Human Resources Officer Chief Technology Officer Harsha Chigurupati Executive Director Anil Arora President-Formulation Operations Sanjay Kumar Senior Vice President - Corporate Strategy & Planning 8#9Our Business structure Granules India Ltd (GIL) (100%) Granules USA (GUSA) Granules Pharmaceuticals Inc (GPI) Granules Europe Ltd (GEL) Granules Lifescience Pvt. Ltd Granules CZRO (100%) Granules Consumer Health (GCH) ✓ GIL: Parent company with presence across the entire pharmaceutical manufacturing value chain from API to finished dosages GUSA: B2B Marketing & Distribution arm for APIs, PFIs and OTC FDs from GIL in the US ✓ GCH: Focused on marketing private-label OTC drugs to retailers in the US. Also, built a packing facility (GPAK) for Rx, OTC and Controlled substances for internal use as well as contract packing services GPI: R&D, manufacturing and front-end division for marketing of Rx products including controlled substances in the US ✓ GEL: B2B Marketing & Distribution arm for APIs, PFls and FDs from GIL in Europe GLPL: Created for commissioning new plants in India (applicable for favourable tax regime with lower income tax rate) GCZRO: Created to establish Integrated Green Pharmaceutical Zone in Kakinada to manufacture products with zero carbon footprint 9#10Strategic Priorities and Organizational Transformation#11Pursuing Purpose-led Growth リ As we embark on this ongoing journey, with careful deliberation, we have revitalized our purpose, vision, and values, ensuring they embody our commitment to transformation. Dr. Krishna Prasad Chigurupati Chairman & Managing Director#12Transforming for the Greater Good: Our new Purpose, Vision & Values PURPOSE Healing lives responsibly through pioneering green science. VALUES Challenging Limits Futuristic Thinking VISION To establish ourselves as a world leader in green chemical and pharmaceutical industry by harnessing cutting-edge technologies to enhance quality of life. Customer Driven Empowering Employees Quality Everywhere Environmental Stewardship 12#13Strategic Priorities Strengthening the core R&D and Innovation Sustainability 13#14Strengthening the core: Building & sustaining our competitive advantage Manufacturing excellence Granules Core Market and customer centricity Vertical integration and leadership Quality and compliance Manufacturing Excellence + Scale & Large Volume + MUPS Capacity + Controlled Substances & Onco Infrastructure Process Innovation and improvements Backward integration of KSMs and advanced intermediates Global Leadership Molecules New Product launches based on unique capabilities 14#15R&D and Innovation: Becoming an innovation and science-led enterprise Enzyme & Bio Transformation Eco friendly substitute to metallo-catalysis Flow Technology Platform Excellence in identified chemistries Green Score in R&D Development Implementation of Green card and Eco scale initiatives. From the early stages of development Mild Reaction Conditions Greater Selectivity Simplified Work Streams Simplified Processing & Purification Safer & Lean Operations Fewer byproducts Improved Productivity Efficient Heat/Mass transfer Green Chemistry Matrix Better Control over Process Atom Economy Atom efficiency E-factor Faster Reactions & Capital Efficiency - Smaller Lead Time Higher Asset Eco-Scale for process efficiency 6 parameters & 38 sub-parameters at every stage Turn Sustainable & Lower Carbon Footprint of the reaction Yield Safety Effluent Input/ RM Cost Operations Parameters Infrastructure considerations 15#16Sustainability & Response to Climate Change An area of emerging opportunities 66 Government or private sector commitments to net-zero cannot be a mere public relations exercise." ANTÓNIO GUTERRES, United Nations Secretary-General, 8 November 2022 From Vision to Action Industries need to Lead the Way in Sustainable Supply Chains and Green-Tech 16#17Empty#18Financial information#19Financial highlights: Revenue and profitability Revenue FY23 FY22 Y-0-Y Gr% (In Mn) 45,119 37,649 20% Value Added 22,046 18,813 17% Value Added % 48.9% 50.0% EBITDA 9,138 7,222 27% EBITDA % 20.3% 19.2% PAT 5,166 4,128 25% PAT % 11.4% 11.0% 19 19#20Financial highlights: Cashflow and ratios ROCE% FY23 FY22 21.1% FY23 FY22 FY23 FY22 Net debt/ 2.02 0.84x 0.97x EBITDA 19.3% Fixed asset turn 2.06 = ROCE Annualised EBIT / Average capital employed Capital employed = Equity + Total Borrowings + LT liabilities Cash Fixed asset turn = Annualised Sales / Average Tangible Gross block CCC Net debt Gross debt - Cash and cash equivalents (In Mn) FY23 FY22 FY23 FY22 FY23 FY22 132 138 Operating Cashflow 7,387 3,321 Capex 4,105 3,967 CCC DIO+ DSO - DPO DIO and DPO are calculated using Material Cost consumed and DSO is calculated using Sales 20 20 20 20#21Financial highlights: Revenue split Region wise share 53% 48% 23% 21% 10% 8% 12% 6% 6%5% Division wise share 30% 26% 22% 20% (In Mn) 50% 52% 5%3% USA Canada Europe LATAM India ROW ΑΡΙ PFI FD FY23 % FY22% FY23 % FY22 % FY23 FY22 Y-0-Y Gr% FY23 FY22 Y-0-Y Gr% USA 23,780 18,251 30% API 13,414 9,751 38% Canada 2,099 1,290 63% PFI 9,021 8,456 7% Europe 10,210 7,902 29% FD 22,684 19,442 17% LATAM 3,443 3,811 (10%) India 2,895 4,415 (34%) ROW 2,691 1,979 36% 21 21#22Last 5 years performance: Sales and profitability Sales: 5yr CAGR: 22% VA and VA%: 5yr CAGR: 23% 45,119 37,649 32,375 25,986 22,792 16,918 22,046 18,463 18,813 51% 47% 45% 13,177 57% 50% 10,236 49% 7,955 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 EBITDA and EBITDA%: 5yr CAGR: 27% PAT and PAT%: 5yr CAGR: 31% 9,138 5,495 8,552 5,166 20% 26% 7,190 13% 17% 4,127 17% 5,253 10% 3,354 20% 19% 16% 2,784 3,840 8% 2,364 11% 11% 1,326 (In Mn) FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 22 222#23Last 5 years performance: Cashflow and ratios ROCE% 17.4% 13.1% 11.4% 28.6% Cash to Cash cycle 125 114 117 109 Asset turns (In Mn) Net debt and Net debt/EBITDA 8,704 9,082 2.00 1.98 2.02 2.06 7,671 1.89 21.1% 1.75 19.3% 3.13 2.36 6,058 5,752 6,966 1.15 0.97 0.84 0.67 138 132 2 2 2 2 2 2 -651 Net Debt Net Debt/EBITDA Operating Cash flow 4,762 4,325 3,321 2,622 7,387 4,463 2,788 li 1,843 Capex 2,710 3,967 4,105 23#24ANDA and Dossier Filing status GPI IP GIL IP Filing Status South Total USA USA Europe Canada UK Others Africa Approved 24 57 5 6 3 1 72 Tentatively Approved 1 2 - 2 - - - To be approved 5 12 3 1 6 3 25 Total Products 30 71 8 7 6 3 4 99 Analgesics CNS Other areas Cardiovascular Anti-diabetic Mineral supplements ANDA/Dossier filed - Therapeutic area wise 13 11 9 5 4 3 Anti-gout 3 Anti-Histamines Antitussives 22 29 24#25GRANULES Mr. Puneet Varshney GM Business Finance and Head Investor Relations Email: [email protected] www.granulesindia.com thank you! orient capital Ms. Payal Dave [email protected] Mr. Irfan Raeen +91 97737 78669 [email protected] Corporate address: www.orientcap.com GRANULES 358 532482 ONSE GRANULES Floor 2 Block 3 My Home Hub Madhapur Hyderabad 500081 CIN: L24110TG1991PLC012471 Voice: +91 40 69043600 www.granulesindia.com Bloomberg GRAN:IN REUTERS GRAN:NS