#1one TARO CH TARO Investor Presentation Sept. 2023 TARO CARLON OUPS CH₂CI C=O -CH3 NOCH,CINO, H₂ N₂O CH CHCI-O O TARO CIO, CHP CHNO#22 Safe Harbor Statement This presentation contains comments and forward-looking statements based upon current plans, expectations, events, and financial and industry trends, which may affect the Company's future operating results and financial position. Such statements involve risks and uncertainties which cannot be predicted or quantified, and may cause future activities or results of operations to differ materially from those discussed herein. Historical results achieved are not necessarily indicative of future profits of the Company. For further information, refer to the Company's filings with the SEC. Taro occasionally uses numerical measures in investor presentations and other forums which are considered non-GAAP Financial Measures. The Company believes that the presentation of non-GAAP measures, in combination with comparable GAAP measures, together provide our investor community with useful supplementary information concerning the Company's ongoing operations and are an appropriate way to evaluate the company's performance. However, they are provided for informational purposes only. Forward-looking statements are applicable only as of the date on which they are made. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise. TARO#33 Vision Reaching People and Touching Lives Globally as a Leading Provider of Valued Medicines. TARO REACHING PEOPLE. TOUCHING LIVES. TARO#44 Company Overview Fully Integrated Pharmaceutical Company Antibiotic Antibiotic TARO Research-based, multinational pharmaceutical company Predominantly US driven business (90% of sales in North America) Diverse portfolio of 200+ pharmaceutical products Generic Rx and OTC ■ Key therapeutic categories: dermatological/topical, neuropsychiatric, cardiovascular, and anti-inflammatory Operations in the U.S., Canada and Israel with 1,500+ employees worldwide ◉ 35% of employees in R&D and Quality Market Share ◉ Ranked #1 or #2 in 65% by market share in the U.S. generic market Excellent track record with FDA & Other Agencies ㅁ Fully Compliant FDA, Ministry of Health, Health Canada Vertical Integration of API and formulation of select key products Financial ◉ Sun Ownership: 78.5% Strong Balance Sheet $1.3 billion in cash and marketable securities: -0- debt High margins, strong cash generation from operations farin Topicort רוקמול Dermal Terconazole Vaginal#55 or Company Overview Key Dates in Taro History 1950 - Established in Israel to manufacture finished pharmaceutical products 1961 - Started chemical synthesis (API production) in Israel TARO 1984 - Established d topical product operations in Canada 1988 - Entered U.S. market TARO TARO LISTED NYSE 2010 Sun Pharma acquires controlling interest in Taro 2012 NYSE Listed 2019 Exited branded presence in U.S. - 2022 Alchemee Acquisition - 2023 - Sun Pharma announces proposal to acquire all of Taro's outstanding ordinary shares Share Repurchases: ☐ 2013 – $193M (Dutch Tender): 2.0M shares 2016/2017 - $500M (10b5-1): 4.3M shares 2019 - $300M announced: 2019 – $25M (Dutch Tender): 281K shares ▪2021 - $50M (10b5-1): 673K shares Special Dividend: 2018 $500M: $12.86 per share TARO LISTED NYSE TARO#66 ☐ Strategy and Opportunity Complex, niche products TARO CREATE SUSTAINABLE REVENUE STREAMS Differentiation: Technically complex products COST LEADERSHIP ㅁ Vertical integration: Development through Manufacturing (API and Finished Dosage) □ Optimize operational costs ㅁ ☐ Regulatory barriers to entry Speed to market BALANCE PROFITABILITY AND INVESTMENTS FOR FUTURE ☐ Development of complex generics ☐ Growth both organically and through strategic business development#77 Research Strategy Technically complex products, Regulatory barriers to entry TARO ☐ Current State (9/30/23) ㅁ ㅁ 234 Approved US FDA ANDAS 19 ANDAS awaiting FDA approval Generic products with sustainable profitability ㅁ Topicals and other niche products with high clinical and regulatory barriers to entry ㅁ Technically complex manufacturing ㅁ Opportunity for API synthesis Proprietary products ㅁ Innovative products for unmet needs ㅁ Niche markets - mainly in dermatology Chemical Synthesis/API ㅁ ◉ Developing and manufacturing for most of our top products 60 Drug Master Files (DMFS) currently submitted to FDA#8A-Ks 200 75 8 HOCH Research & Development - Investing for the future – $290 million over 5 years (in millions) $63.2 $59.8 $60.2 $54.5 $52.2 March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 $30.5 $23.0 6 mos. 9/30/22 6 mos. 9/30/23 TARO#99 ANDA Filings Growing our pipeline of quality products 249 253 230 224 235 242 242 216 207 198 187 178 FY FY FY FY FY FY FY FY FY FY FY FY 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: ANDA Filings are presented on a cumulative basis since 1978. TARO#1010 ANDA Approvals Strong success in approvals 233 234 221 226 211 203 193 181 164 168 172 160 FY FY FY FY FY FY FY FY FY FY FY FY 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: ANDA Approvals are presented on a cumulative basis since 1978. TARO#11☐ ☐ ☐ ☐ ☐ ☐ 11 Haifa, Israel Manufacturing, Research, Marketing & Distribution Fully Compliant - Approved by FDA, IMH and Accreditation of foreign manufacturing API Development and Manufacturing 900,000 sq. ft. manufacturing facility 700+ employees 100+ finished dosage forms/250+ products manufactured ㅁ Focus: oral solids, liquids, semi-solids and foams Therapeutic Areas - Dermatology, Pain, Gastro, Cardiology and Dental Primary product lines: ◉ ㅁ ㅁ ㅁ Dermatology: Rx and OTC semi-solid and liquid products (creams, ointments, lotions & gels) Cardiology and Neurology: Prescription oral dosage products Gastroenterology: Rx and OTC (Nexium, Normalax & Meroken) Oral analgesics: Rx and OTC ◉ Oral Central Nervous System (CNS): Rx O O O O ◉ ◉ OTC nasal sprays Allergy (Antihistamine): OTC oral dosage products +$46M in sales#1212 Brampton, Canada Manufacturing, Research, Marketing & Distribution Fully Compliant - Approved by FDA and Health Canada Manufactures 200+ finished dosage form pharmaceutical products Focus: semi-solids and liquids Primary product lines: ㅁ Dermatology: Rx and OTC semi-solid products ㅁ (creams, ointments and gels) and liquids Injectables and specialty products Solid-oral generic medicines Ranked #6 in the Canadian generic market ㅁ 160+ products sold in Canada 245,000+ sq. ft. manufacturing facility 500+ Employees ☐ +$136M in sales (+)#1313 U.S. Operations Headquarters and Distribution Center - HAWTHORNE, NEW YORK - Headquarters 130+ Employees - CRANBURY, NEW JERSEY - Distribution Center 300,000 sq. ft. SOLAR POWERED#1414 Taro USA Headquarters and Distribution Center TARO ☐ Headquarters - Hawthorne, New York ㅁ 130+ employees Taro USA Top 10 Products Tretinoin(Base) Cream Clindamycin(Phosphate) Lotion MAT September Sales USD $MM $51.6 $14.8 ㅁ Distribution Center - Cranbury, New Jersey 300,000 sq. ft. ㅁ Solar powered Warfarin(Sodium Salt) Tabs $14.8 Mupirocin (Base) Ointment $14.7 Fluorouracil(Base) Cream $14.2 ☐ Marketing and distribution of generic products in the U.S. market ☐ Dermatology: Rx, OTC and Proactiv, semi- solid products (creams, ointments & gels) and liquids $363M in sales Dapsone(Base) Gel $14.2 Metronidazole(Base) Gel $14.1 Betamethasone (Dipropionate) Cream $12.9 Enalapril(Maleate) Tabs $12.3 Phenytoin (Sodium Salt) Caps $12.3 Source: IQVIA MAT Sept. 2023#1515 Alchemee Acquisition Topical skin care products proactiv proactiv CLEANSE 1 CLEANSER 2 TONE 3 proactivea 2 proactiv ☐ REPAIR ㅁ ㅁ proaction 3 In Feb. 2022, Taro acquired the Proactiv business and product line. ㅁ Proactiv is a line of topical skin care products with a core acne indication: the products include cleansers and moisturizers as well as acne creams. A majority of Proactiv sales occur through a subscription model, whereby customers receive monthly shipments of products suited to their individual skin types and needs. Proactiv also sells its products to retailers such as Target and on Amazon. Acquisition Rationale Taro identified four key benefits from the Proactiv acquisition. ㅁ ㅁ Expansion of consumer health business Enhanced branded consumer health business Strengthened leadership position in dermatology: Taro is elevated to a top 5 position in topical dermatology in the US consumer health market. Creation of a comprehensive acne portfolio within the Sun group Proactiv Product ◉ ◉ ◉ The original Proactiv 3-step skin care routine was dermatologist-developed and launched in 1995. It has tremendous brand awareness especially in the USA and Japan. Proactiv has evolved from a single product direct-response company to a diversified, omni-channel platform. It is sold direct-to-consumer, as well as, in brick & mortar stores like Ulta, Target and CVS, and on e-Retailer sites like Amazon. Proactiv has a wide range of products beyond its well-known kits, ranging from Clear Skin SPF 30, Hydrocolloid Blemish Patches, Post Acne Dark Mark Relief and Post Acne Scar Gel. In July 2023, Proactiv launched its newest skin care routine "Proactiv Clean," a clean and gentle routine that smooths and helps calm skin while clearing mild breakouts. It features mineral sulfur and salicylic acids with azelaic acid, bakuchiol and chamomile, and formulated without parabens, phthalates, sulfates, cyclic silicones. TARO#1616 Net Sales Composition North America and Derm Focused Source: Taro 2023 Form 20-F By Product Type 3% 12% 6% 2%. 9% By Country 8% 5% 24% 63% 68% Dermatological & Topical Neuropsychiatric Allergy Cardiovascular Anti-inflammatory Other U.S.A. Canada Israel International TARO#1717 Strong presence in U.S. distribution channels Major U.S. drug wholesalers, smaller wholesalers and distributors ☐ All major retail pharmacy and food chains ☐ ப ☐ All major mass merchandisers Integrated health organizations Pharmacy Benefit Managers (PBMs) ◉ Group Purchasing Organizations (GPOs) ◉ Long-Term Care Providers (LTCs) Health Maintenance Organizations (HMOs) Institutions Government □ V.A., State Medicaid formularies, others TARO#1818 Key Financial Ratios Full-year results Gross margin * 67% 62% 54% 52% 47% 45% 2019 2020 2021 2022 2023 YTD 2024 EBITDA margin * • 47% 42% 31% 15% 8% 2% Net margin * 42% 38% 26% 12% 6% 4% 2019 2020 2021 2022 2023 YTD 2024 Earnings per share * $7.23 $6.35 $3.70 $1.75 $0.68 $0.49 2019 2020 2021 2022 2023 YTD 2019 2020 2021 2022 2023 YTD 2024 2024 FY20/21 & FY21/22 excludes settlement and loss contingency charges. • YTD 2024 4/1/23 to 9/30/23 TARO#1919 Taro Income Statement Current 6 month and full year comparisons (In thousands) Sales, net Cost of sales TARO Six Months Ended Sept. 30, As Reported As Reported As Reported As Reported 2023 (unaudited) 2022 (unaudited) 2023 (audited) 2022 (audited) Year Ended March 31, Proforma 2022 (unaudited) As Reported 2021 (audited) Proforma 2021 (unaudited) $ 307,096 $ 287,163 $ 572,952 $ 561,347 S 561,347 $ 548,970 $ 548,970 169,410 158,595 304,629 268,212 268,212 252,314 252,314 137,686 128,568 268,323 293,122 293,122 296,656 296,656 Gross profit Operating Expenses: Research and development 30,470 23,030 52.243 54,540 54,540 60,152 60,152 Selling, marketing, general and administrative 110,398 98,377 198,366 113,676 113,676 91,355 91,355 Settlements and loss contingencies 61,446 558,924 Operating income (loss) (3,182) 7,161 17,714 63,460 124,906 (413,775) 145,149 Financial (income) expense, net. Interest and other financial income (24,862) (6,221) (20,850) (8.187) (8,187) (20,174) Foreign exchange expense (income) (460) 3,082 2,813 (1,986) (1,986) 365 Other gain, net 956 840 2,463 4,226 4,226 2,892 (20,174) 365 2,892 Income (loss) before income taxes 23,096 11.140 38,213 77,859 139,305 (391,073) 167,851 Tax expense (benefit) Net income (loss) 4,515 18,581 (126) 12,768 19,592 11,266 25,445 58,267 12,901 126,404 Net (loss) income attributable to non-controlling interest 9,667 (400,740) (14,087) 26,380 141,471 Net income (loss) attributable to Taro $ 18,581 $ 11,266 $ 25,445 $ 58,267 $ 126,404 $ (386,653) $ 80 141,391#2020 20 Balance Sheet Highlights Strong Balance Sheet - Cash ($1.3 billion), No Debt (In thousands) ASSETS CURRENT ASSETS: TARO Sept 30, 2023 March 31, 2023 March 31, 2022 March 31, 2021 Cash and cash equivalents 269,011 154,495 S 251,134 605,177 TRANSPARENCY Accounts receivable and other: ACCOUNTABILITY RESPONSIBILITY OPENNESS Trade, net TOTAL CURRENT ASSETS Goodwill Other assets Short-term and current maturities of long-term bank deposits Marketable securities 119,980 119,980 47,586 518,058 575,814 522,028 418,480 181,064 202,260 246,973 213,539 Other receivables and prepaid expenses Inventories 46,254 57,210 59,726 53,347 208,188 226,669 210,439 180,292 1,342,555 1,336,428 1,337,886 1,470,835 Marketable securities Property, plant and equipment, net Deferred income taxes 388,370 404,896 435,189 557,209 189,893 190,139 199,692 205,508 100,807 103,672 124,882 142,007 17,231 17.231 11,820 7,191 80,617 83,147 66,892 24,123 TOTAL ASSETS $ 2,119,473 $ 2,135,513 $ 2,176,361 $ 2,406,873 Dedicated to maintaining the highest standards of quality, safety, and excellence. LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables Other current liabilities TOTAL CURRENT LIABILITIES Deferred taxes and other long-term liabilities TOTAL LIABILITIES S 43,059 S 68,485 S 68,232 S 61,166 318,429 317,064 363,887 615,135 361,488 385,549 432,119 676,301 10,429 19,106 32,799 371,917 404,655 464,918 35.115 711,416 Taro shareholders' equity 1,747,556 1,730,858 1,711,443 1,703,649 Non-controlling interest (8.192) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,119,473 $ 2,135,513 $ 2,176,361 $ 2,406,873#2121 Cash Flow Significant Cash Flow Generation (In thousands) Six Months Ended Sept 30, Year Ended March 31, As Reported As Reported 2023 2022 As Reported 2023 Proforma 2023 As Reported 2022 TARO Proforma 2022 As Reported 2021 Proforma 2021 Cash flows from operating activities: Net income (loss) S 18,581 S 11,266 S 25,445 S 25,312 S 58,266 S 126,404 S (400,740) S 141,391 F Adjustments required to reconcile net income (loss) to net cash used in operating activities: 36,712 (48,933) 6,305 73,730 (216,964) 39,214 446,510 (11,164) Net cash provided by (used in) operating activities 55,293 (37,667) 31,750 99,042 (158,698) 165,618 45,770 130,307 Net cash provided by (used in) investing activities Net cash used in financing activities Increase (decrease) in cash and cash equivalents 59,866 (36,039) (125,556) (125,556) (170,581) (78,709) 67,741 67,741 - - (24,934) (24,934) (24,196) (24,196) 114,516 (75,943) (96,639) (29,347) (354,043) 62,145 91,823 91,823 Cash and cash equivalents at beginning of period 154,495 251,134 Cash and cash equivalents at end of period 269,011 $ 175,191 $ 251,134 154,495 $ 251,134 221,787 605,177 605,177 513,354 513,354 $ 251,134 $ 667,322 $ 605,177 $ 605,177#2222 Taro Summary Overview TARO Shareholder value creation ■ NYSE Listed in 2012 □ Special Dividend: $500 million ($12.86/share) Share Repurchases: ■ 2013 Dutch Tender: 2.0M shares ($193M) ■ 2016 10b5-1: 1.8M shares ($250M) ■ 2019 10b5-1: 2.5M shares ($250M) ■■2019 Dutch Tender: 281K shares ($25M) ■2021 10b5-1; 673K shares ($50M) ☐ Cash and cash equivalents (including bank deposits and short-term/long-term marketable securities) □ $1.3 billion ☐ Company well positioned for medium & long-term performance#23Dipropional c Thank You! TARO NYSE: TARO www.taro.com TARO Cath&IN OFS CallO CH₂CI C=O CH -0-- -CHS NOCH₂CIN OH NO, CH CHCI-06 O TARO CIO, C₂Hipp