#1000000 10000 Creating Lasting Value Investor Presentation - June 2021 NSE:SUNPHARMA | BSE:524715| Bloomberg:SUNP IN | Reuters:SUN.BO WWW.SUNPHARMA.COM SUN PHARMA#2Disclaimer 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. Sun Pharmaceutical Industries Limited does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 2#3Contents 1 Sun Pharma at a glance 2 Long-term Strategy 3 Global Specialty Initiatives 4 LO 5 Revenue Composition, History & Acquisition Track Record Business Operations, R&D, Manufacturing 6 Corporate Governance 7 Financials - P&L, Balance Sheet, Cash Flows & Ratios 8 Key Milestones Targeted © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 3#4Sun Pharma at a glance US India 4th Largest Global Specialty Generic Company* Emerging Markets Rest of World Manufacturing Footprint Market Presence Employees Quality Compliance R&D and Manufacturing Addressable Segments • • . Ranked 10th in US Generics Market## • No. 1 Pharma Company in India Amongst the largest Indian Pharma Company in Emerging Markets Expanding presence in Rest of World • 44 manufacturing sites across the world Presence in more than 100 countries across branded and generic markets • 37,000+ global employee base • Multiple manufacturing facilities approved by various regulatory authorities across the world including USFDA • Capabilities across dosage forms like injectables, sprays, ointments, creams, liquids, tablets and capsules •Specialty products, branded generics, complex generics, pure generics & APIS SUN PHARMA *Source: Evaluate Pharma Estimates for 12 months ended Dec 2020 ## Source: IQVIA data for 12 months ended Feb 2021 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 4#5World's 4th Largest Specialty Generic Pharma Co SUN PHARMA Teva 2020 Worldwide Generic Sales (US$ in billions) Novartis Viatris Sun Pharma + Taro Pfizer Fresenius 5.3 3.8 3.6 3.3 Aurobindo 3.0 Apotex 2.5 Endo 1.9 Lupin 1.9 Dr. Reddy 1.9 Nichi-Iko 1.9 Sawai 1.8 STADA 1.8 Himka 1.7 Aspen 1.7 8.5 8.3 Source: Evaluate Pharma Estimates for 12 months ended Dec 2020 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 5#6Sun Pharma today US Formulations 10th largest generics company in US* with a strong pipeline (94 ANDAs & 9 NDAs awaiting approval) Presence in Specialty branded & generics segments with more than 550 approved products FY21 sales: US$ 1,359 mn (2) India Branded Generics No.1 ranked with 10 classes of doctor categories Leading position in high growth chronic therapies Specializes in technically complex products FY21 sales: US$ 1,393 mn (2) India 33% FY21 International 67% Geographical sales split Market cap: US$ 22 bn (1) Gross Sales: US$ 4,465 mn (2) EBITDA: US$ 1,096 mn (24.5% margin) (2) R&D Investment: 6.5% of Sales Globalized supply chain Strong balance sheet 54% owned by promoter group Revenue Share SUN PHARMA Emerging Markets 18% Western Europe & Other Markets # 15% India FY21 Branded API & Others 6% Generics 31% US Formulation 30% Note: Emerging Markets Presence in about 80 countries across Africa, Americas, Asia and Eastern & Central Europe Key focus markets - Romania, Russia, South Africa, Brazil & Mexico and complementary & affiliated markets FY21 sales: US$ 779 mn (2) (1) As of July, 16, 2021 using spot exchange rate of INR /USD = 74.54 (2) Using average exchange rate for FY21 of INR/USD = 74.23 # Includes Western Europe, Canada, Australia & New Zealand, Japan and other markets. All sales numbers in US$ for 12 months ended March 31, 20201 * Source: IQVIA data for 12 months ended Feb 2021 © Sun Pharmaceutical Industries Limited. All Rights Reserved. Western Europe, Canada, Japan ANZ & others Presence across key markets in Western Europe, Canada, Japan and A&NZ Product portfolio includes specialty products, differentiated offerings for hospitals, injectables & generics for retail market FY21 sales: US$ 649 mn (2) 160#7Driving Long Term Growth Enhance share of specialty business globally Achieve differentiation by focusing on technically complex products Focus on key markets - achieve critical mass Speed to market Ensure sustained compliance with global regulatory standards Create sustainable Cost revenue streams leadership Increasing contribution of specialty and complex products Future investments directed towards differentiated products Balance profitability & investments for future Business development © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA Optimize operational costs Vertically integrated operations Use acquisitions to bridge critical capability gaps Focus on access to products, technology, market presence Ensure acquisitions yield high return on Investment Focus on payback timelines#8Our Specialty Portfolio Ilumya/ Ilumetri - Indication For plaque psoriasis SUN PHARMA • Launched in US in October 2018 & in Australia in Dec-2018, Phased launch in Europe by Almirall starting December 2018 onwards. • Long term clinical data shows that the significant response rate seen in 52 & 64 weeks were maintained over five years • Evaluating new indications for Ilumya - Phase-2 data shows potential to improve joint & skin symptoms of Psoriatic Arthritis. Commenced Phase-3 in 2020 • Out licensed to CMS for Greater China market & to Hikma for Middle East & North African markets Launched in Japan in September 2020 . • Indication - For dry eye disease Cequa • Launched in US in October 2019 Absorica LD Levulan Kerastick • Out-licensed to CMS for Greater China market in June 2019 •Indication - For the treatment of severe recalcitrant nodular acne that cannot be cleared up by any other acne treatments, including antibiotics. • Launched in US in Feb-2020 • Indication - In combination with BLU-U (Blue Light Photodynamic Therapy Illuminator) for treatment of minimally to moderately thick actinic keratoses of the face, scalp, or upper extremities. •Currently marketed in US for actinic keratosis © Sun Pharmaceutical Industries Limited. All Rights Reserved. 8#9Our Specialty Portfolio Odomzo Indication For LABCC (locally advanced basal cell carcinoma) SUN PHARMA • Currently marketed in US, Germany, France, Denmark, Switzerland, Australia and Israel Yonsa Bromsite Xelpros Sprinkle Portfolio • Indication - For metastatic castration resistant prostate cancer in combination with methylprednisolone • Launched in US in May 2018 - Indication For prevention of ocular pain & treatment of inflammation following cataract surgery • Launched in US in November 2016 • Indication - For reduction of elevated IOP in patients with open-angle glaucoma or ocular hypertension BAK (Benzalkonium chloride) free form of latanoprost Launched In US in January 2019 • Products using sprinkle technology for patients who have difficulty swallowing Sprinkle versions of metoprolol (cardiology), rosuvastatin (cardiology) & duloxetine (neuro-psychiatry) commercialized in US between 2018-2019 Therapeutic solutions for long-term care (LTC) patients © Sun Pharmaceutical Industries Limited. All Rights Reserved. 9#10Highly Diversified Revenue Base India Branded Formulations 31% Emerging Markets © Sun Pharmaceutical Industries Limited. All Rights Reserved. 18% FY21 Sales Rs. 331 billion Western Europe & Other Markets # 15% API & Others 6% US Formulations 30% SUN PHARMA # Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets. 10#11Impressive Track Record of Growth (All Figures in INR Billion) 331.4 81.3 75.6 278.9 Sales EBITDA 19.5 57.2 CAGR CAGR 22% 4.9 21% 16.4 FY06 FY11 FY16 FY21 1.9 66.9 61.7 FY06 FY11 FY16 FY21 23.9 Operating Cash Flow 19.4 CAGR 26% 32.8 50.0 Free Cash Flow 5.7 59.3 52.3 SUN PHARMA 18.2 Adjusted Net Profit CAGR 17% FY06 FY11 FY16 FY21 2.4 7.6 24.7 21.8 -1.6 FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 FY06 FY11 FY16 FY21 © Sun Pharmaceutical Industries Limited. All Rights Reserved. Adjusted EPS (Rs/Share) CAGR 17% 11#12Consistent profitability and returns Gross Margin # EBITDA Margin 73.8% 72.6% 71.5% 71.4% 20.7% 19.9% 20.0% SUN PHARMA 24.5% Net Margin (adjusted) 17.9% 13.5% 12.7% 12.5% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ROCE ROE Market Cap (USD Bn) 13.5% 11.8% 11.1% 11.0% II 9.4% 8.7% 9.1% 12.5% 18.3 16.6 11.9 19.3 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 # Gross margin= (Net Sales - Material Cost)/ Net Sales*100 ROCE & ROE exclude one-time exceptional charges ROCE = EBIT / Avg. (Total Assets - Current Liabilities) ROE = Net Profit / Avg. Shareholders Equity © Sun Pharmaceutical Industries Limited. All Rights Reserved. (Market Cap as on 31st March) 12#13Profitability Gross Margin 73% 72% 71% 74% 64% 64% 64% 65% FY18 FY19 FY20 FY21 SUN PHARMA EBITDA Margin Net Margin (Reported) 25% 21% 20% 20% 20% 17% 16% 16% FY18 FY19 FY20 FY21 Gross margin (Net Sales - Material Cost) / Net Sales * 100 #Top 9 Indian Pharma company include Aurobindo, Cadila Healthcare, Cipla, DRL, Glenmark, Ipca, Lupin, Torrent and Wockhardt. © Sun Pharmaceutical Industries Limited. All Rights Reserved. 15% 12% 9% 8% 9% 7% 8% 8% FY18 FY19 FY20 FY21 Sun Pharma Range of Top 9 Indian Pharma Cos. Average 13#14Creating a Global Company DUSA a SUN PHARMA company Began with 5 products Acquired Dusa MERCK Agreement with Merck for in- licensing Tildrakizumab InSite Vision Solutions for Sight +Biosintez a SUN PHARMA company Acquired POLA PHARMA Acquired InSite Vision ophthalmic portfolio Biosintez in Russia Acquired Pola Pharma in Japan SUN PHARMA Year- 1983 1994 2010 2012 2013 2014 2015 2016 2018 2019 2020 IPO Rs. 550 Mn raised TARO Acquired Taro Sun Pharma Today URL PHARMA Acquired URL Pharma RANBAXY LABORATORIES LIMITED Acquired Ranbaxy Entry into Japan -Acquired 14 brands from Novartis • Acquired Global rights for Cequa & Odomzo Launch of Specialty products Ilumya Cequa Odomzo • Absorica LD Yonsa Xelpros Sprinkle products 37,000+ Global Employee Base Invested over Rs. 193 Bn in R&D till date (Since 1994) © Sun Pharmaceutical Industries Limited. All Rights Reserved. BSE SENSEX NIFTY тубб Stock of the nation Part of NSE Nifty & BSE Sensex in India 44 Manufacturing facilities in 6 Continents 67% of sales from international markets 14#15Key Deals & Rationale Year Deals Country Rationale SUN PHARMA Middle 2020 Exclusive licensing agreement with Himka for Ilumya East & North Africa 2020 Licensing agreement with SPARC for SCD-044 Global Registration and commercialization of the product in all Middle East & North Africa (MENA) markets. Potential treatment for atopic dermatitis, psoriasis and other auto-immune disorders 2020 In-licensed Triferic brand from Rockwell Medical Inc. (USA) India Expands nephrology portfolio in India for treating anaemia in hemodialysis patients. - 2019 Licensing agreement with Astrazeneca UK for ready-to-use infusion oncology products Mainland China Access to oncology market in Mainland China Licensing agreement with CMS for Greater 2019 Tildrakizumab, Cequa & 8 generic Access to Greater China market China products 2018 Acquired Pola Pharma in Japan Japan Access to Japanese dermatology market. 2016 Acquired global rights for Cequa & Odomzo Global Enhances specialty pipeline. 2016 Acquired Biosintez Russia Local manufacturing capability to enhance presence in Russian market 2016 Licensing agreement with Almirall for Tildrakizumab for Psoriasis Europe Access to European market for Tidrakizumab © Sun Pharmaceutical Industries Limited. All Rights Reserved. 15 S#16Key Deals & Rationale Year Deals Country 2016 Acquired 14 brands from Novartis Japan Distribution agreement with 2016 India AstraZeneca 2016 Distribution agreement with AstraZeneca India 2015 Acquired InSite Vision Inc. US 2015 Distribution agreement with AstraZeneca India Rationale SUN PHARMA Entry into Japan Distribution services agreement in India for brand “Oxra" & "Oxramet"Ⓡ (brands of dapagliflozin, used for diabetes treatment) Distribution services agreement in India for brand "Oxra" & "Oxramet"Ⓡ (brands of dapagliflozin, used for diabetes treatment) Strengthens branded ophthalmic portfolio in U.S. Distribution services agreement in India for brand "Axcer"Ⓡ (brand of ticagrelor, used for the treatment of acute coronary syndrome) Strengthen position in the Global Generic Pharma Industry, No.1 Pharma Company in India & Strong positioning in Emerging Markets Strengthening the specialty product pipeline Access to sterile injectable capacity in the US Access to specialty drug-device combination in dermatology segment Access to dermatology generic portfolio Manufacturing facilities at Israel & Canada Global 2015 Sun Pharma - Ranbaxy Merger Markets In-licensing agreement with Merck for Global 2014 Tildrakizumab a biologic for psoriasis Markets 2014 Acquired Pharmalucence US 2012 Acquired DUSA Pharma, Inc. US Acquired Taro Pharmaceutical 2010 Israel Industries Ltd. 1997 Acquired Caraco Detroit, Entry into US Market US © Sun Pharmaceutical Industries Limited. All Rights Reserved. 16#17US Business 30% of Revenues SUN PHARMA © Sun Pharmaceutical Industries Limited. All Rights Reserved. 17#18US Business at a glance 10th Largest Pharma Company in the US Generics Market * Dermatology Segment • Ranked 2nd by prescriptions## in the US dermatology market Comprehensive Portfolio** • Robust Pipeline** Market Presence SUN PHARMA Wide basket of 595 ANDAS & 64 NDAs filed and 501 ANDAS & 55 NDAS approved across multiple therapies • 94 ANDAS & 9 NDAs pending with FDA • Presence in generics, branded & OTC segments Flexible Manufacturing Dosage Forms **All data as of 31-March-2021 • Integrated manufacturer with flexibility for manufacturing onshore/ offshore Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets, Capsules, Drug-Device combination * Source: IQVIA data for 12 months ended Feb 2021 ## Source: IQVIA data for 12 months ended Feb 2021 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 18#19US Business - Significant Ramp-up in Sales Key Milestones in US SUN PHARMA 23 55 35 62 62 FY98 Sales in Rs. billion •Entry in US through Caraco acquisition 10 year CAGR - 16% FY10 •Acquired Taro Pharma - Entry into US dermatology market 137 138 135 FY13 98 87 107 FY17 105 101 3 3 3 3 3 3 3 3 3 2 2 © Sun Pharmaceutical Industries Limited. All Rights Reserved. FY18 •Acquired DUSA - Entry in branded specialty market •Tildrakizumab filing in US & Europe Acquired Ocular Technologies giving access to Cequa, a product for dry eyes. •Acquired Odomzo- branded oncology product from Novartis •Launched Odomzo in US •US FDA approval for Ilumya •Launched Ilumya & Yonsa in US •Received USFDA approval for Cequa FY19 •Launched Xelpros in US •Launched Ready-to-Infuse INFUGEM™ •Launched Cequa in US FY20 •Launched Absorica LD in US in Feb-2020 FY21 •Presented long term clinical data for Ilumya & other clinical insights for Odomzo & Levulan at American Academy of Dermatology Conference •Presented Pre-clinical data for GLP-1R agonist at American Diabetes Association Conference 19#20ANDA Pipeline - Significant ramp up ANDAS Filed and Approved (Cumulative) ANDA Approvals by Therapeutic Area 595 129 584 561 571 581 112 501 483 453 427 422 FY17 FY18 Cumulative Products Filed FY19 FY20 FY21 Cumulative Products Approved © Sun Pharmaceutical Industries Limited. All Rights Reserved. 67 62 48 48 31 19 15 14 15 14 Allergy Oncology Metabolism Antibiotic SUN PHARMA 51 Gastro Others (All data as of 31-March-2021) 20#21India Branded Generic Business 31% of Revenues SUN PHARMA © Sun Pharmaceutical Industries Limited. All Rights Reserved. 21#22India Business at a glance Market Position** No. 1 in India No. 1 ranked with 8.2% market share SUN PHARMA Prescription Ranking## Chronic Segment Acute Segment Product Offering Strong Brand Positioning** De-risked Growth** Sales Strength ● . No. 1 ranked by prescriptions with 10 different classes of doctors Market leader in the chronic segment Strong positioning in the acute segment • Specializes in technically complex products and offers a complete therapy basket •28 brands in the country's top 300 pharmaceutical brands. • • ** - As per AIOCD AWACS data for 12 months ended Mar'21 ## As per SMSRC data for Feb'21 © Sun Pharmaceutical Industries Limited. All Rights Reserved. • Top 10 Brands contribute approx. 19% of India revenues - low product concentration Growth driven by a basket of brands • 10,900+ strong field force 22 22#23Largest Pharma Company in India Market Share SUN PHARMA Formulation Sales in India as of 12 Months ended March 2021 (Rs. mn) 120,466 Sun Pharma 8.2% Abbott Abbott HC + Novo 6.3% 93,510 72,790 Cipla 4.9% 62,620 Zydus 4.3% 62,620 Mankind 4.3% 55,970 Lupin 3.8% 51,240 Alkem Cachet + Indchemie 3.5% 46,130 Torrent 3.1% 44,740 Intas 3.0% Dr. Reddys 42,700 2.9% 42,020 Macleods 2.9% 40,690 Emcure + Zuventus 2.8% Source: AIOCD AWACS MAT March 2021 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 23#24India Business - Sales ramp-up Leadership in chronic segment; Strong positioning in acute segment 28 brands in top 300 brands of the country Sales in Rs. Billion, Therapeutic Revenue Break-up** 24 FY11 FY12 Impact of Ranbaxy Acquisition 29 29 30 37 10 year CAGR -16% One-time impact of 103 change in 97 distribution 80 77 73 71 67 FY17 © Sun Pharmaceutical Industries Limited. All Rights Reserved. Others Opthalmology 3% 4% Urology 3% Gynaecology, 3% Respiratory 4% Vitamins/ Minerals / Nutrients, 5% Cardiology 18% SUN PHARMA Dermatology, 6% Market Share 8.2% Neuro-Psychiatry 17% Pain / Analgesics 7% Anti-Infectives, 9% Diabetology 9% Gastroenterology 12% **As per AIOCD AWACS - Mar'21 24#25Leadership in key therapeutic areas* Number 1 Ranking with 10 Doctor Categories* SUN PHARMA Prescription Ranking Specialist Feb '17 Feb '18 Feb '19 Feb '20 Feb '21 Psychiatrists 1 1 1 1 1 Neurologists 1 1 1 1 1 Cardiologists 1 1 1 1 1 Orthopaedic 1 1 1 1 1 Gastroenterologists 1 1 1 1 1 Diabetologists 1 1 1 1 1 Dermatologists 1 1 1 1 1 Urologists 1 1 1 1 1 Consulting Physicians 1 1 1 1 1 Chest Physicians 2 1 2 2 1 Nephrologists 1 1 1 1 2 ENT 2 2 2 1 2 Ophthalmologists 2 1 1 2 2 *Ranks based on prescription share Source-Strategic Marketing Solutions and Research Centre (SMSRC) Prescription Data Creating Lasting Value - Investor Presentation 25#26Best-in-class field force productivity Sales Per Medical Representative (Rs. Mn) 10.0 8.8 8.6 8.3 Impact of sales force expansion 9.4 Well trained and scientifically oriented sales representatives team with strong performance track record Field force with highest SUN PHARMA productivity amongst key players in India Recently expanded the sales. force strength to enhance geographical & doctor reach and improve brand focus FY17 FY18 FY19 FY20 FY21 Sales Per Representative (Rs. Mn) © Sun Pharmaceutical Industries Limited. All Rights Reserved. 26#27Emerging Markets 18% of Revenues SUN PHARMA © Sun Pharmaceutical Industries Limited. All Rights Reserved. 27#28Emerging Markets Business at a glance Amongst the leading Indian Companies in Emerging Markets Global footprint · Presence in about 80 markets • Focus Markets Product Portfolio Customer Focus Romania, Russia, South Africa, Brazil, Mexico and complementary & affiliated markets •Extensive basket of branded products • Strong relationships with doctors and medical practitioners Sales Force • Approximately 2,200 Sales Representatives Opportunity Local Manufacturing © Sun Pharmaceutical Industries Limited. All Rights Reserved. To cross-sell products between Sun Pharma and Ranbaxy marketing infrastructure . Across 7 countries SUN PHARMA 28#29SUN PHARMA Western Europe, Canada, Japan, ANZ & Other Markets 15% of Revenues © Sun Pharmaceutical Industries Limited. All Rights Reserved. 29#30Western Europe & Other Markets at a glance Market Presence Amongst the leading Indian Companies . Product Portfolio Focus Sales Force Local Manufacturing SUN PHARMA • Across all major markets in Western Europe, Canada, A&NZ, Japan and few other markets Expanding basket of products including specialty brands, injectable & hospital products as well as products for retail market • Development and commercialization of complex generics and differentiated products to drive sustainable and profitable growth • Distribution led model • Sales force for Specialty products • At Canada, Japan, Australia, Israel and Hungary + Servicing from India facilities • Acquired 14 established prescription brands from Novartis in March'16. Japan Presence • Acquired Pola Pharma in Japan in Jan'19 • Launched Ilumya in Japan in September 2020 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 30#31Global Consumer Healthcare Business SUN PHARMA 100 g CLOTRIMAZOLE DUSTING POWDER ABZORB ABSORBENT DUSTING POWDER NEW Pack ALL-ROUND NEW 360 ACTION ANTIFUNGAL ANTIBACTERIAL RANBAXY © Sun Pharmaceutical Industries Limited. All Rights Reserved. REVITAL H PEPMELT Daily alth Supplement Marsh PEPFIZ Natural Way To Healthy Heart & Digestion Garlic Pearls RANBAXY Garlic Pearls Natural Way to hy Heart & Dignition 31#32Global Consumer Healthcare Business at a glance SUN PHARMA India Global Presence Focus Markets Strong Brand Equity An Attractive Opportunity • Amongst the top 10 consumer healthcare companies • • Presence in about 20+ countries Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland, Thailand, Belarus, Kazakhstan, Morocco, UAE and Oman Enjoys strong brand equity in 4 countries Sales Force . Promoted through dedicated sales force in each market • Strong Positioning © Sun Pharmaceutical Industries Limited. All Rights Reserved. Amongst top 10 consumer healthcare companies in India, Romania, Nigeria & Myanmar 32#33Active Pharmaceutical Ingredients (API) Business 6% of Revenues SUN PHARMA © Sun Pharmaceutical Industries Limited. All Rights Reserved. 33#34API Business Backward Integration - Strategic Importance Strategic Importance Customers Backward integration provides cost competitiveness and supply reliability • Large generic and innovator companies Product Portfolio Approximately 300 APIS Pipeline Development Regulatory approvals Manufacturing . • Approx. 20-30 APIs scaled up annually 365 DMF/CEP approvals to date • 479 DMF/CEP Filings to date • Across 14 facilities © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 34#35Research & Development 10 © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA SAMSUNG 0000 35#36Research & Development Cumulative R&D Spend of over Rs. 193 billion to date • R&D Spend • Capabilities Organization IPR Support • Focus © Sun Pharmaceutical Industries Limited. All Rights Reserved. • R&D spend at 6.5 % of sales for FY21 Strong cash flows & large scale to support R&D investments Capabilities in generics, finished dosage development, biological support, chemistry and new drug development • Approx. 2,600 headcount globally with capabilities across dosage forms like orals, liquids, ointments, gels, sprays, injectables Strong team of intellectual property experts supporting R&D • Developing non infringing formulations and development of specialty/complex products SUN PHARMA 36#37R&D Investments R&D Investments 7.6% 8.6% 6.9% 6.1% 6.5% Filings and Approvals ANDA NDA/BLA 595 23.1 64 22.5 21.5 501 19.8 19.8 FY17 FY18 FY19 FY20 FY21 Filed Approved R&D Investments (Rs Bn) R&D Investments (% of Sales) © Sun Pharmaceutical Industries Limited. All Rights Reserved. DMF/CEP 479 55 SUN PHARMA Patents** 1969 365 1287 Filed Approved Filed Approved Filed Granted ** Excludes Expired/Abandoned Patents (All data as of 31-March-2021) 37#38Global Manufacturing Presence SUN PHARMA © Sun Pharmaceutical Industries Limited. All Rights Reserved. 38#39Global Manufacturing Presence World Class Manufacturing Infrastructure Extensive Global Footprint • 44 manufacturing facilities across India, the Americas, Asia, Africa, Australia and Europe Integrated Network Capabilities High Quality • Vertically integrated network across six continents enabling high quality, low cost and a quick market entry across the geographies • One of the few companies that has set up integrated manufacturing capability for the production of oncology, hormones, peptides and steroidal drugs High quality manufacturing facilities. Many facilities approved by US FDA, UK MHRA, EMEA and other international regulatory authorities Dosage Forms © Sun Pharmaceutical Industries Limited. All Rights Reserved. Ability to manufacture a variety of dosage forms - Orals, Creams, Ointments, Injectables, Sprays, Liquids SUN PHARMA 39#40Manufacturing Facilities Formulation 44 manufacturing sites API . India 15, US: 3, Japan : 2 Canada, Hungary, Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria and Russia : 1 each Capacities available for a variety of finished dosages India 9, Australia: 2, Israel: 1, US : 1, Hungary: 1 Injectables / Sterile Orals Tablets/Capsules Topicals Vials Semisolids Ampoules Dry powder Eye drops Creams Ointments Liquids Pre-filled Syringes MDI Suppository Gels Aerosols Lyophilized Units © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 40#41Corporate Governance Our philosophy on corporate governance envisages working towards high levels of transparency, accountability and consistent value systems across all facets of operations Chairman Israel Makov Former President & CEO of Teva Pharma. Industries Ltd. SUN PHARMA Independent Director Vivek C. Sehgal Chairman, Samvardhana Motherson Group & Motherson Sumi Systems Ltd. Independent Director Gautam B. Doshi Professional with expertise in M&A, Taxation, Accounting & Corp. and Commercial Laws. Independent Director Rekha Sethi Director General All India Management Association (AIMA) Independent Director Dr. Pawan Goenka Former MD & CEO of Mahindra & Mahindra Ltd. Independent Director Rama Bijapurkar Independent management consultant & Professor of Management Practice at IIM, Ahmedabad © Sun Pharmaceutical Industries Limited. All Rights Reserved. 41#42Financials dreamstime dreamstime dreamstime dreamstime © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 42 Download more graphics at www.podgraphics.com#43Financials Market Capitalisation Rs. 1,600 billion / US$ 22 billion (as of 16th July 2021) SUN PHARMA FY17 YOY FY18 YoY FY19** YoY FY20 YoY (All Figures in Rs. Mn) FY21 YOY P&L Summary Sales 302,642 9% 260,659 -14% 286,863 10% 323,252 13% 331,392 3% Gross Profit 221,335 3% 186,413 -16% 208,173 12% 230,947 11% 244,491 6% EBITDA 87,751 16% 51,846 -41% 59,280 14% 64,774 9% 81,324 26% Net Profit 69,644 53% 20,957 -70% 26,654 27% 37,649 41% 29,038 -23% # Net Profit (Adjusted) 69,644 33% 33,006" -53% 38,798 18% 40,256 4% 59,317* 47% R&D Spend 23,138 0% 22,489 -3% 19,847 -12% 19,736 -1% 21,499 9% BS Summary Mar'17 YOY Mar'18 YOY Mar'19 YoY Mar'20 YOY Mar'21 YOY Shareholders Funds 366,397 11% 383,141 5% 414,091 8% 452,645 9% 464,628 3% Loan Funds 80,910 -3% 97,518 21% 98,934 1% 75,783 -23% 33,430 -56% Net Fixed Assets 149,404 20% 157,110 5% 172,919 10% 175,858 2% 168,322 -4% Investments 11,919 -35% 71,430 Cash and Bank Balances 151,408 15% 99,294 Inventory 68,328 6% 68,810 Sundry Debtors 72,026 6% 78,150 499% 79,025 -34% 72,756 1% 78,860 9% 11% 101,431 -27% 64,876 28% 96,125 -5% -11% 64,455 -1% 15% 78,750 0% 89,970 14% 88,840 14% 94,212 6% 90,614 -4% Sundry Creditors 43,954 23% 47,662 8% 41,479 -13% 35,836 -14% 39,737 11% # FY18 - Adjusted for Rs. 12.1 bn provision related to Modafinil settlement & deferred tax adjustment # FY19 - Adjusted for Rs. 12 bn provision related to Modafinil settlement **FY19 - Includes a one-time sales reduction of Rs. 10,850mn related to change in distribution for India business # FY20 - Adjusted for Rs. 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India) #FY21 - Adjusted for Rs. 30.3 bn provision (related to Taro US - DOJ & MDL settlement Rs. 42.2, Rs. 0.9 bn provision related to UK Citalopram case, Rs. 4.1 bn related to deferred tax gain. Taro provisions are adjusted for minority interest) © Sun Pharmaceutical Industries Limited. All Rights Reserved. 43#44Sales Break-up In INR Billion Sales 303 261 287 323 331 16 21 品ǒ 20 48 26 18 45 15 35 45 30 55 58 48 48 54 54 105 101 138 87 107 77 FY17 103 88 97 80 73 FY18 FY19 FY20 FY21 India Formulations US Formulations Emerging Markets Rest of World API+Others © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 44#45EBITDA Trend In INR Billion Sales 303 261 287 323 331 % of Sales 26.9% 28.0% 27.4% 28.6% 26.2% 16.2% 20.7% 21.0% 20.8% 19.7% 27.9% 28.6% 31.0% 31.1% 31.8% 29.0% 24.5% 19.9% 20.7% 20.0% FY17 FY18 FY19 FY20 FY21 EBITDA Other Expenditure Personnel Costs Material Costs © Sun Pharmaceutical Industries Limited. All Rights Reserved. SUN PHARMA 45#46Cash Flow Net Cash From Operating Activities (Rs. Bn) Free Cash Flow (Rs. Bn) 70.8 39.1 22.0 65.5 61.7 33.9 19.5 SUN PHARMA 50.1 50.0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 © Sun Pharmaceutical Industries Limited. All Rights Reserved. -10.2 46#47Financial Ratios SUN PHARMA FY17 FY18 FY19** FY20 FY21 Growth (%) Sales 8.5 (13.9) 10.1 12.7 2.5 Gross Profit 2.7 (15.8) 11.7 10.9 5.9 EBITDA 16.1 (40.9) 14.3 9.3 25.5 Net Profit 53.2 (69.9) 27.2 41.3 (22.9) Net Profit (Adjusted) 33.1 (52.6)" 17.5# 3.8# 47.4# Margins (%) Gross Margin 73.1 71.5 72.6 71.4 73.8 EBITDA Margin (%) 29.0 19.9 20.7 20.0 24.5 Net Margin 23.0 8.0 9.3 11.6 8.8 Net Margin (Adjusted) 23.0 12.7# 13.5" 12.5# 17.9' Return (%) ROCE 21.8 11.1 11.8 11.0 13.5 ROE 19.8 8.7 9.4 9.1 12.5 Others Debt/Equity 0.22 0.25 0.24 0.17 0.07 Fully Diluted EPS 28.9 8.7 11.1 15.7 12.1 Fully Diluted EPS (Adjusted) 28.9 13.8# 16.2# 16.8# 24.7" R&D Spend % of Net Sales 7.6 8.6 6.9 6.1 6.5 Revenue 7.1 7.9 6.6 6.0 6.4 Capital 0.6 0.7 0.3 0.1 0.1 # FY18 - Adjusted for Rs. 12.1 bn provision related to Modafinil settlement & deferred tax adjustment # FY19 - Adjusted for Rs. 12 bn provision related to Modafinil settlement **FY19 - Includes a one-time sales reduction of Rs. 10,850mn related to change in distribution for India business #FY20 - Adjusted for Rs. 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India) #FY21 - Adjusted for Rs. 30.3 bn provision (related to Taro US - DOJ & MDL settlement Rs. 42.2, Rs. 0.9 bn provision related to UK Citalopram case, Rs. 4.1 bn related to deferred tax gain. Taro provisions are adjusted for minority interest) © Sun Pharmaceutical Industries Limited. All Rights Reserved. 47#48Key Financials Q4 & FY21 SUN PHARMA Q4 FY21 Q4 FY20 CHANGE FY21 FY20 (All Figures in Rs. Mn) CHANGE Gross Sales 84,314 80,780 4.4% 331,392 323,252 2.5% Gross Profit 61,906 57,732 7.2% 244,491 230,947 5.9% Gross Margin 73.4% 71.5% 73.8% 71.4% EBITDA 19,568 12,561 55.8% 81,324 64,774 25.5% EBITDA Margin 23.2% 15.5% 24.5% 20.0% Net Profit 8,942 3,998 123.6% 29,038 37,649 -22.9% Net margin 10.6% 4.9% 8.8% 11.6% # Net Profit (Adjusted) 13,430 6,605 103.3% 59,317' # 40,256 47.4% Net margin (Adjusted) 15.9% 8.2% 17.9% 12.5% R&D 5,571 5,360 3.9% 21,499 19,736 8.9% R&D as % of Net Sales 6.6% 6.6% 6.5% 6.1% EPS (Diluted) INR 3.7 1.7 123.6% 12.1 15.7 -22.9% # EPS (Diluted) INR (Adjusted) 5.6 2.8 103.3% 24.77 16.8 47.4% # Q4 FY21 - Adjusted for 4.5 bn provision (related to Taro US DoJ settlement Rs. 5.8 bn, provision related to UK Citalopram case Rs. 0.9 bn & provision related to deferred tax gain Rs. 1.2 bn. Taro provisions are adjusted for minority interest) # FY21 - Adjusted for Rs. 30.3 bn provision (related to Taro US - DOJ & MDL settlement Rs. 42.2, provision related to UK Citalopram case Rs. 0.9 bn & provision related to deferred tax gain Rs. 4.1 bn. Taro provisions are adjusted for minority interest) # Q4FY20 & FY20 - Adjusted for Rs. 2.6 bn provision (related to Dusa US DoJ settlement of Rs. 1.6 bn and Indirect Tax provision of Rs. 1.0 bn in India) © Sun Pharmaceutical Industries Limited. All Rights Reserved. 48#49Sales Breakup Q4 & FY21 SUN PHARMA (All Figures in Rs. Mn) Q4 FY21 Q4 FY20 CHANGE FY21 FY20 CHANGE Formulation India 26,709 23,648 12.9% 103,432 97,102 6.5% US 26,946 27,129 -0.7% 100,839 105,425 -4.4% Emerging Markets 14,015 13,540 3.5% 57,834 55,044 5.1% ROW 11,913 11,212 6.3% 48,191 45,210 6.6% Sub-total 79,583 75,529 5.4% 310,296 302,780 2.5% ÀPI Others 4,357 4,834 -9.9% 19,504 19,159 1.8% 374 417 -10.3% 1,593 1,312 21.4% Gross Sales 84,314 80,780 4.4% 331,392 323,252 2.5% US Formulations 32% 17% 29% 17% India Branded Generics Q4 Q4 Emerging Markets FY21 14% FY20 14% 5% 6% Rest of World 32% 34% API & Others © Sun Pharmaceutical Industries Limited. All Rights Reserved. # Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets 49#50Key Milestones targeted for future US Business India Business • EM & ROW Business Global Consumer Healthcare • • Enhance share of specialty/branded business • Continue to focus on complex generics and high entry barrier segments • Ensure broad product offering to customers across multiple dosage forms • Focus on productivity enhancement • Maintain leadership position in a fiercely competitive market SUN PHARMA Continuously innovate to ensure high brand equity with doctors • Continue to evaluate in-licensing opportunities for latest generation patented products • Gain critical mass in key markets •Enhance product basket in emerging markets · • Focus on profitable growth Maintain leadership in existing markets through focus on innovative solutions Enhance presence in high growth markets © Sun Pharmaceutical Industries Limited. All Rights Reserved. 50#51Key Milestones targeted for future • R&D • Focus on developing complex products across multiple dosage forms Invest to further build the specialty pipeline SUN PHARMA Regulatory/ Quality • Ensuring 24x7 compliance to cGMP is imperative for a global business Continuously enhance systems, processes, human capabilities to ensure compliance with global regulatory standards Financial • Target sustainable and profitable growth • Focus on improving ROCE © Sun Pharmaceutical Industries Limited. All Rights Reserved. 51#52Sun Pharma at a glance US India 4th Largest Global Specialty Generic Company* Emerging Markets Rest of World Manufacturing Footprint Market Presence Employees Quality Compliance R&D and Manufacturing • Ranked 10th in US Generics Market## No. 1 Pharma Company in India • • • Amongst the largest Indian Pharma Company in Emerging Markets Expanding presence in Rest of World • 44 manufacturing sites across the world Presence in more than 100 countries across branded and generic markets • 37,000+ global employee base • • Addressable Segments Multiple manufacturing facilities approved by various regulatory authorities across the world including USFDA • Capabilities across dosage forms like injectables, sprays, ointments, creams, liquids, tablets and capsules Specialty products, branded generics, complex generics, pure generics & APIS SUN PHARMA *Source: Evaluate Pharma Estimates for 12 months ended Dec 2020 ## Source: IQVIA data for 12 months ended Feb 2021 © Sun Pharmaceutical Industries Limited. All Rights Reserved. 52#53SUN PHARMA Thank You! For more information please contact: Investors: Nimish Desai Tel: +91 22 4324 4324, Ext 2778 Tel Direct +91 22 4324 2778 [email protected] Corporate Address: SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063 © 2017 Sun Pharmaceutical Industries Limited., All Rights Reserved. "SUN Pharma", The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners. NSE:SUNPHARMA, BSE: 524715, Reuters: SUN.BO, Bloomberg: SUNP IN CIN: L24230GJ1993PLC019050 www.sunpharma.com © Sun Pharmaceutical Industries Limited. All Rights Reserved. 53