Lupin Ltd. Investor Presentation

September 3, 2014

Safe harbor statement

Materials and information provided during this presentation may contain ‘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.

Risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations. Risks and uncertainties particularly apply with respect to product-related forward-looking statements. Product risks and uncertainties include, but are not limited, to technological advances and patents attained by competitors, challenges inherent in new product development, including completion of clinical trials; claims and concerns about product safety and efficacy; obtaining regulatory approvals; domestic and foreign healthcare reforms; trends toward managed care and healthcare cost containment, and governmental laws and regulations affecting domestic and foreign operations.

Also, for products that are approved, there are manufacturing and marketing risks and uncertainties, which include, but are not limited, to inability to build production capacity to meet demand, unavailability of raw materials, and failure to gain market acceptance.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Parameter

Market Cap

Revenues

PAT

PAT%

Finished dosage mix

2005

Rs. 22 bn.

Rs. 1,161 cr.

Rs. 84 cr.

7%

45%

2014

Rs. 418 bn.

Rs. 11,087 cr.

Rs. 1,836 cr.

17%

90%

Lupin’s Journey

CAGR 39%

CAGR 28%

CAGR 41%

Lupin is a globally dominant generic force

7th

largest generics (by market cap3)

3rd

largest Indian Pharma (by total sales)

10th

largest generics (by sales3)

Globally

2.8%

IPM Market Share (by total sales1)

4th

largest South Africa generics2

Emerging markets

Strong presence in Australia Philippines Mexico

5th

largest US generics

(by prescriptions1)

8th

largest Japanese generics1

Advanced Markets

Presence in Europe

#1 in Anti-TB & Cephalosporins (globally)

Sources:

1 IMS MAT March 14

2 IMS MAT June 14

3 Bloomberg Industries GNRC

Global outlook

The last couple of years have seen higher approvals by US FDA. However industry feels that the future would be a scenario wherein there are fewer small molecule blockbuster drugs ahead for generics to pursue…

Source: FDA and EvaluatePharma

Fewer USFDA approvals vs. amount invested in R&D…

1

5 2 4 2 3 7 6 6 6 2

31

18 18 16

21 19

15 24

33

25

88 96

108 120

131 129 131 138 137 135

0

40

80

120

160

0

15

30

45

60

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Glo

bal R

&D

expe

nse

($b

n)

NM

Es +

Bio

logi

cals

Ap

pro

ved

Biologics NMEs R&D expenditure

…and patent cliff moving towards biologics……

Source: Broker notes

2

Global outlook

$73bn

$9bn

$58bn

$23bn Biologics

Traditional

0

10

20

30

40

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17

916 13 15

33

12 16 1712 13

11

7 3

14

51($

bn

)

Traditional Biologics

Source: Mergermarket and broker notes

Global outlook…..Consolidation

Global Pharma majors have taken bold steps towards consolidation

Derma

Ophtha

Combining Global OTC Business

Pfizer offering >$100bn for AZ

Diabetes business

Source: Mergermarket and broker notes

Global outlook…..Consolidation

Indian companies, increased geographic presence and acquired technologies…

Tech

no

logy

…And consolidation at trade channels creating margin squeeze for generics

Geo

grap

hy

Mexico

EU assets

South Africa

Critical to be a valued partner providing high

quality service and products

Partnered with

Partnered with

Market size across Globe

Developed markets Emerging Markets

356

224

116

190

81

349

222

112

168

73

0

100

200

300

400

North America Europe Japan APAC & Africa LatAm

($b

n)

1.1%

2012 2017

Emerging markets likely to grow much faster than the Developed Markets

Key Therapy Areas – Growth Profile

Growing Therapy Areas Losing Therapy Areas

Source: EvaluatePharma

73

16 13

42

14

91

68

90

19 14

45

13

83

63

129

21 16

51

14

90

56

12%

6%

4%

4%

0.4%

(0.3%)

(4%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%

14%

(60)

(40)

(20)

0

20

40

60

80

100

120

140

Glo

bal

Mar

ket

Size

($b

n)

2013 2015 2018 2013-18 CAGR

Focus on: Complex generics Biosimilars Specialty business M & A that require investment in building capabilities …

1

What does this mean for Gx?

2

3

4

Lupin’s Transformation

Anti-infective and API focused domestic player

Generics formulation player focusing on domestic & advanced markets

Specialty generic player across the globe including emerging markets

Pre-2005

2005-2013

2014……..

Building Capabilities

• Technology and R&D

• Acquired Nanomi – a complex injectible platform in Netherlands

• Set-up a specialty R&D center in the US for Inhalation

• Built capabilities in:

• Respiratory

• Controlled substances

• Complex Injectables

• Dermatology

• Geographic spread – strengthening emerging market presence

• Acquired Opthalmic specialty company in Mexico – Laboratorios Grin

• Global Biosimilar program

• Two approvals in India

• Developmental JV in Japan – YL Biologics

Building Capabilities

• Continued focus on branded business in the US

• Acquired US rights for Alinia® Oral Suspension

• Co-marketing arrangement for Locoid® Lotion

• Launched Antara® low dose

• Investment in HR capital:

• Ms. Theresa Stevens – Chief Corporate Development Officer

• Dr. Maurice Chagnaud – President Europe & Head of Inhalation Strategy

• Dr. Matthew Davis as CMO - US & Head of Global Clinical Development –

Complex Generics & Specialty

• Dr. Xian-Ming Zeng - Sr. VP, Inhalation R&D

• Dr. Avinash Nangia - VP, R&D

Q1 2014-15 Performance Highlights

Business Growth – Last 12 Quarters 15

.4 17.4

17.9

18.8

22.2

22.4 24

.7

25.4

24.2 26

.3

29.8

30.5 32

.8

3.0 4.

1

3.8

3.8 4.

8

5.2 6.

3

6.6

6.9

7.4 8.1 8.8 11

.4

19%

23%21% 20%

22%23%

26% 26%29% 28%

27% 29%

35%

0%

10%

20%

30%

40%

0.0

10.0

20.0

30.0

40.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Rs

bn

.

Revenues EBITDA EBITDA Margins

2014-15 2011-12 2012-13 2013-14

Revenues doubled growing at a rate of 6%1, whereas EBITDA tripled growing at a rate of 12%1 since last 12 quarters…

…EBITDA margins at 35% in Q1’15 vs 19% in Q1’12

Note: 1 Compounded monthly growth rates

Business Update

• Top-line increasing by 36% driven by

• Strong US foothold + new launches

• Increasing Gx penetration in Japan

• India business giving strong growth in chronic TAs

• Increased EBITDA margins to ~35% due to

• Increasing share of high margin US business

• Cost savings in manufacturing and other expenses

• Better Forex management

• Better Working Capital management

• WC Days reduced to 76 in Q1’15 from 92 at Q4’14 end

• Continues to enjoy Net Cash status; Strong muscle to acquire

P&L Highlights

Particulars (Rs mn) Q1FY15 % of net

sales Q1FY14 % of net

sales % YoY

growth

Net sales 32,840 100.0 24,207 100.0 35.7

Other operating income 568 1.7 555 2.3 2.3

Total revenue 33,408 101.7 24,762 102.3 34.9

Gross margin (excl. other operating income)

21,766 66.3 15,459 63.9 40.8

EBITDA 11,437 34.8 6,905 28.5 65.6

EBIT 10,351 31.5 6,281 25.9 64.8

Net profit 6,247 19.0 4,011 16.8 55.8

Business Split

US 49%

Europe2%

India23%

Japan10%

ROW7%

API9%

74% business from International markets

91% formulation business

US business comprises 7% branded formulations

US & Europe

0

3,000

6,000

9,000

12,000

15,000

18,000

Q1'14 Q1'15

10,681

16,429

SalesRs. mn

• US business grew 58% to Rs. 15,740

mm & EU business degrew by 7% to Rs.

690mm

• Good contribution from new

launches

• 4 new launches in US, the portfolio

totaling to 731

• US Market Share: No. 1 in 31 products

& top 3 in 53 products.2

• Total of 200 ANDA filings, of which 103

have been approved (4 in the quarter)

• 8 filings during the quarter

• Will see more niche / complex generics

filings + launches

Note: 1 As of 30-June-14 2 IMS MAT Mar 2014

0

1,500

3,000

4,500

6,000

7,500

9,000

Q1'14 Q1'15

5,894

7,615

Sales

India

Note: 1 IMS MAT Jun 2014; 9% is the Apr-Jun quarter YoY growth for IPM

Rs. mn

• Grew by 29% YoY vs IPM growth of 9%1

• Retains 11th position in the IPM1

• 29% YoY growth and 32% QoQ growth

• High growth in all therapies with highest in Asthma, Diabetic, CVS and GI segments

• Current field force of 5,424 (~4,800 sales reps)

• Launched 16 new products during Q1’151

0

1,000

2,000

3,000

4,000

Q1'14 Q1'15

2,923

3,415

Sales

Japan

Growth in local currency 13%

• Kyowa (excl. Irom) grew by 19%; Irom

slipped by (4%) YoY

• Kyowa showed strong matured

products growth

• Irom decrease due to dip in

outlicensing business

• Product Launches- Kyowa: 2; Irom: 1

Rs. mn

0

1,000

2,000

3,000

Q1'14 Q1'15

1,9672,140

Sales

ROW

Rs. mn

Note:

1 IMS MAT Mar 2014

2 IMS MAT May 2014

• Growth of 28%

vs industry

growth of 8%2

• Grew mainly due

to new launch

and oncology

division

• Ranked 25th2

pharma

• 5 products

launched during

the quarter

• Growth of 20%

in local currency,

due to strong

matured

products growth

• 4th largest

generic company

& #1 CVS player1

• Registered one

product during

the quarter

South Africa Philippines

0

1,000

2,000

3,000

Q1'14 Q1'15

2,429

2,925

Sales

API

US and Europe grew by 256%

Domestic business grew by 42%

Emerging markets saw marginal decline

Rs. mn

R&D

• R&D expenses for Q1FY15 are Rs. 2,439 m, 7.4% of net sales vs 1,956m in Q1FY14

• Talent pool of 1,400+ scientists

• 200 ANDA filings, of which 103 have been approved (4 in the quarter)

• FTFs - 30 filings till date (US$ 13.7 bn) with 15 Exclusives (US$ 1.5 bn)

• New R&D center in the US for Inhalation

• Acquired Nanomi – Complex Injectables depot platform

• First NCE moving into Phase II & two additional NCEs’ entering into Phase I

• Pipeline of 10 bio-similar drugs in various phases of development

1,956 2,172 2,710

2,456 2,439

8.1% 8.3% 9.1%

8.0% 7.4%

Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15

FY 14 – Rs.9,294 m; 8.4% of net sales

Awards & Accolades

• ATD (erstwhile ASTD) BEST Award 2014 for

Learning & Development

• Consistently ranked among top 2 Pharma

companies for past 4 years by Great Place to

Work

• The Economic Times 500 rankings - India’s

Most Resilient Companies – 2013-14

• Dr Kamal Sharma - Best CEO - Business Today

Awards 2013

• Ms. Vinita Gupta – Forbes Asia

Businesswomen - Power 50

THANK YOU