Zydus Lifesciences : August 2022

August 10, 2022
Listing Department	Code: 532321
BSE LIMITED
P J Towers, Dalal Street, Fort,
Mumbai-400 001
Listing Department	Code: ZYDUSLIFE
NATIONAL STOCK EXCHANGE OF INDIA LIMITED
Exchange Plaza, Bandra Kurla Complex,
Bandra (E),
Mumbai-400 051
Re:	Investor Presentation

Dear Sir,

Please find attached the Investor Presentation on the unaudited financial results for the quarter ended on June 30, 2022.

Please find the same in order.

Thanking you,

Yours faithfully,

For, ZYDUS LIFESCIENCES LIMITED

DHAVAL NARENDRA SONI

Digitally signed by

DHAVAL NARENDRA SONI

Date: 2022.08.10 13:17:09 +05'30'

DHAVAL N. SONI COMPANY SECRETARY

Encl.: As above

Zydus Lifesciences Limited

Earnings Presentation

10th August, 2022

1

Disclaimer and Safe Harbor Statement

• THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE "COMPANY"). The material that follows is a Presentation of general background information about the Company's activities as at the date of the Presentation or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms
  "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company's intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates.
• By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward- looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company's actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and expansion plans (iii) changes in regulatory norms applicable to the Company (iv) technological changes (v) investment income (vi) cash flow projections etc.
• The Company, as such, 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 or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. This document is just a Presentation and is not intended to be a "prospectus" or "offer document" or a "private placement offer letter" (as defined or referred to, as the case may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company's equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company's securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever.

2

Q1 FY23: Financial Performance

Total Revenues*

Rs. 40,727 mn

2% YoY

EBITDA & Margin %

Rs. 8,330 mn

20.5% of revenues

14% YoY

R&D

Rs. 2,842 mn

7% of revenues

Net Profit ex. Exceptional

& Disc. Ops ^

Rs. 5,295 mn

11% YoY

Key Highlights of Q1 FY23

❑ Ex-COVID related business, total revenues grew 11% yoy.

❑ Branded portfolio of India formulations business continued to progress

well (up 9% yoy, ex-COVID) with market share gain in key therapy areas.

❑ Consumer Wellness business rebounded on the back of robust

performance of summer heavy brands viz. Glucon-Dand Nycil.

❑ US formulations business grew on the back of volume expansion and

new launches during the quarter.

❑ Research & Development (R&D) spend: at Rs.2,842 mn (7% of revenues).

Revenue Break-up (Rs. mn) and YoY Growth

	614EU	API	Alliances
EM	1,224	477
3,155	3% -10%	-6%
14%				India Form
				11,251
		Total	-17%
		39,229
		1%
US				Consumer
15,592				Wellness
9%				6,916

18%

❑	Net cash: Rs. 5,628 mn (at 30-Jun'22) vs Rs. 569 mn (at 31-Mar'22).
❑	Capex for the quarter: Rs. 2,828 mn.

Moraiya USFDA Inspection Update

• USFDA inspected the facility from 26th July to 5th August,2022.
• Inspection concluded with four Form 483 observations, none of which were related to data integrity.

Note:

* Total Revenues include net sales and other operating income.

^ Adjusted for exceptional items and loss from discontinued operations.

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Key Financial Metrics (1/2)

	Total Revenues (Rs. mn)		Gross Profit (Rs. mn)
40,018			38,638	40,727	26,468		25,634
		23,988
	37,598	36,398		23,064	23,679

Q1FY22

Q2FY22

Q3FY22

Q4FY22

Q1FY23

Q1FY22

Q2FY22

Q3FY22

Q4FY22

Q1FY23

	Total R&D (Rs. mn) and % to Revenues		EBITDA ex. one-offs (Rs. mn) and Margin %
7.3%	5.9%	7.0%	7.0%	7.0%	24.3%	25.0%	20.6%	22.3%	20.5%
2,935			2,697	2,842	9,719	9,393
		2,553			8,612
						8,330
	2,222					7,516

Q1FY22

Q2FY22

Q3FY22

Q4FY22

Q1FY23

Q1FY22

Q2FY22

Q3FY22

Q4FY22

Q1FY23

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