Slide 1: Jubilant Life Sciences Limited
Jubilant Life Sciences Limited August 2018
Slide 2: Disclaimer
Disclaimer Important Disclaimer This presentation (the “Presentation”, or the “document”) has been prepared by Jubilant Life Sciences Limited (the “Company”) for the recipient for the purpose of providing information on the Company. The contents of this Presentation are confidential and strictly for
Slide 3: Jubilant Life Sciences At a Glance
Jubilant Life Sciences At a Glance Revenue (INR bn) Global integrated pharma and life sciences solutions provider with a track record of about 40 years 80.0 1.8 70.0 1.2 1.3 1.8 60.0 Strategic presence in lnjectables with USFDA approved 50.0 Manufacturing facilities in North America 40.0 25.6 40
Slide 4: Jubilant Life Sciences Overview
Jubilant Life Sciences Overview Pharmaceuticals Life Science Ingredients Specialty Pharmaceuticals Radiopharmaceuticals Specialty Intermediates and Nutritional CMO of Sterile Injectables Products Others Allergy Therapy Products Drug Discovery Solutions India Branded API & Generics Pharmace
Slide 5: Key Credit Strengths
Key Credit Strengths 1 Global Competitive Edge Due to Low Cost and Vertical Integration 2 Strong Leadership in Key Products and Markets 3 De-risked Business Model With Diverse Sources of Revenue 4 Strong Pipeline of Products with Deep R&D Capabilities 5 High-Quality, World –Class, Low Cost Manufactu
Slide 6: Global Competitive Edge Due to Low Cost and Vertical Integration
Global Competitive Edge Due to Low Cost and Vertical 1 Integration Vertical integration across the value chain enables cost competitive advantage resulting in higher margins Pharmaceuticals Life Sciences Ingredients 1 2 3 4 Presence across the spectrum offering products/services and Fine Crop Anim
Slide 7: Leadership Position in Key Products
2 Leadership Position in Key Products… Pharmaceuticals Leader in Radiopharmaceutical products such as MAA, DTPA and I-131 Specialty Ranked in top 5 Contract Manufacturers in North America for sterile Pharmaceuticals Pharmaceuticals Leading supplier in North America for Allergy Therapy Products
Slide 8: Strong Position in Radiopharma & Allergy Therapy Products
…With Strong Position in Radiopharma & Allergy Therapy 2 Products Business Radiopharmaceuticals Wide array of therapeutic and diagnostic products, with market leadership and limited competition across key products in North America Demonstrated strong growth in Radiopharmaceuticals business • Fut
Slide 9: De-risked Business Model With Diverse Sources of Revenue
De-risked Business Model With Diverse Sources of 3 Revenue De-risked business model FY18 Revenue Mix by Segment FY18 Revenue Contribution of Top 10 Customers Presence in niche Specialty businesses that have high Drug Discovery Solutions Top 10 barriers to entry 3% Specilaty Specialty Customers F
Slide 10: Strong Pipeline of Products With Deep R&D Capabilities
4 Strong Pipeline of Products With Deep R&D Capabilities Strong R&D capabilities demonstrated by complex and niche product filings in formulations and API Strong R&D support with a dedicated workforce of around 1,100 R&D professionals 95 filings + 4 ANDAs for dosage (sterile) Pharmaceuticals R&D
Slide 11: High-Quality, World-Class, Low Cost Manufacturing Footprint
High-Quality, World-Class, Low Cost Manufacturing 5 Footprint Spokane, Washington, USA Roorkee, Uttarakhand Contract manufacturing of Sterile Generics manufacturing injectable and Allergy therapy Gajraula, Uttar Pradesh Largest integrated facility of Specialty Intermediates and Samlaya, Gujara
Slide 12: Experienced Management Team with High Standards of Corporate Governance
Experienced Management team with high standards of 6 corporate governance Shyam S Bhartia Hari S Bhartia Chairman Co-Chairman & Managing Director 39 industry years in pharma, specialty 33 industry years in pharma, specialty chemicals, foods, oil and gas, aerospace chemicals, foods, oil and gas, aero
Slide 13: Performance Back on Track With Business Related Concerns Resolved
Performance Back on Track With Business Related Concerns Resolved Robust Growth in Jubilant Life Sciences’ EBITDA… Successful Resolution of Warning Letters at Montreal and 22% 20% 21% 21% 22% Spokane Montreal CMO Facility 4,808 4,307 4,471 In Feb 2013, Jubilant’s manufacturing facility Jubilant Ho
Slide 14: Pharmaceuticals Segment
f) we > Vie SS —_—, VW jusuanr Pharmaceuticals Segment LIFESCIENCES 14
Slide 15: Overview
Overview Specialty Pharmaceuticals API & Generics 1 One of the leading US player involved in 1 US focused formulations player with a development, manufacturing, marketing and growing presence in Japan, Australia and distribution of radiopharmaceutical products emerging markets Radio Leadership
Slide 16: Value Creation in Pharmaceutical Businesses
Value Creation in Pharmaceutical Businesses Revenue 1,997 8,950 15,458 27,277 39,954 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2003 2005 2007 2008 2009 2011 2014 2017 Acquired Acquired Acquired Hollister Acquired Draxis Commissio Commission Co
Slide 17: Overview
Overview Pharmaceuticals Revenue (INR m) Specialty Pharmaceuticals API & Generics Radiopharmaceuticals: North America Solid Dosage Formulations: Strong pipeline market leadership in nuclear imaging of 95 ANDAs filed and 35 ANDAs pending 39,954 products approvals as on June 30, 2018 31,035 28,850
Slide 18: Pharma business has shown Strong Profitability
Pharma business has shown Strong Profitability EBITDA margin increasing from 16.6% in FY 2015 to 25.1% in FY 2018 API & Generics Specialty Pharmaceuticals EBITDA Margin (%) 16.6% 30.9% 31.4% 25.1% 29% Revenue (INRmm) 25,251 25,586 31,035 40,133 20,786 26388 16558 14861 11597 13,989 13,989 14,477 13,
Slide 19: Unique US led business model
We have a unique US led business model which makes us standout amongst Indian pharma companies Strength in North America ~79% of Pharma Revenues from Diversified Low Risk Business Model US and Canada • Market leadership in stable, niche • Leadership positions in specialty segments with high entry pr
Slide 20: Key Growth Drivers
Key Growth Drivers New launches including differentiated products in niche businesses Strong order book in CMO business – expect good ramp up of operations and higher capacity utilization in the coming quarters Target deeper penetration in North America and accelerating growth to become a leading
Slide 21: Life Science Ingredients
f) we > Vie SS —_—, VW jusianr Life Science Ingredients LIFESCIENCES 21
Slide 22: Overview
Overview Life Sciences Ingredients Revenue (INR m) Speciality Intermediates & Nutritional Products Life Sciences Chemicals Specialty Intermediates 33,282 Leadership in domestic market and significant global 28,824 Global leadership in Pyridines, Picolines and presence 25,759 derivatives Key p
Slide 23: Life Sciences Ingredients Key Growth Drivers
Key Growth Drivers Conversion of existing product specific plants to multi-purpose plants to meet enhanced customer demand requirements New Product launches in Specialty Intermediate plants Specialty Intermediates and Increased supply of Life Sciences intermediates for Pharma related applications
Slide 24: Financial Overview
é ry we > Vie SS —_—, W jusianr Financial Overview LIFESCIENCES 24
Slide 25: Financial Overview
Financial Overview Revenue (INR m) EBITDA (INR m) & EBITDA Margin Capex (INR m) 75,178 15,880 3,974 58,262 58,933 58,614 13,702 12,603 21% 23% 22% 2,904 21% 2,497 2,209 7,317 1,381 20,786 13% 4,471 FY15 FY16 FY17 FY18 Q1'FY19 FY15 FY16 FY17 FY18 Q1'FY19 FY15 FY16 FY17 FY18 Q1'FY19 EBITDA EBITDA Marg
Slide 26: Pharma Business: Overview
Pharma Business: Overview Revenue (INR m) Revenue by Segment (FY18) Revenue by Geography (FY18) ROW India 7% 3% 40,133 Europe & Japan 31,035 10% 28,850 26,820 Generics Specialty 34% Injectables 66% 11,813 USA & Canada FY15 FY16 FY17 FY18 Q1'FY19 80% EBITDA (INR m) % of Total EBITDA (FY18) 9,751 10,0
Slide 27: Life Sciences Ingredients: Overview
Life Sciences Ingredients: Overview Revenue (INR m) Revenue by Segment (FY18) Revenue by Geography (FY18) 33,282 China & ROW 31,442 14% 28,824 Specialty 25,759 Intermediates & Nutritional Products 46% India 8,468 59% Life Sciences Europe, North Chemicals America & 54% Japan 27% FY15 FY16 FY17 FY18 Q
Slide 28: Strong Balance Sheet
Strong Balance Sheet Debt Overview (INR m) Debt Breakdown by Currency (30-Jun-18) 39,901 INR 39,040 31% 36,585 37,146 36,566 35,009 34,458 34,795 33,272 32,307 US$ & Other Currencies 69% Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Gross Debt Net Debt Net Debt / EBITDA • Reorganized debt portfolio in such a w
Slide 29: Q4'FY18 and FY18 Results Analysis
Q4’FY18 and FY18 Results Analysis 29
Slide 30: Income Statement – Q4'FY18
Income Statement – Q4’FY18 Particulars Q4'FY17 Q3'FY18 Q4'FY18 YoY Growth QoQ Growth (Rs Crs) (%) Total Revenue from Operations (Net of Excise) 1,598 2,068 2,252 41% 9% Pharmaceuticals 804 1,101 1,238 54% 12% Life Science Ingredients 743 922 968 30% 5% Drug Discovery Solutions 51 45 47 -8% 5% Total
Slide 31: Financial Highlights – Q4'FY18
Financial Highlights – Q4’FY18 • Consolidated revenue at Rs. 2,252 Crore, up 41% YoY and 9% QoQ • Pharmaceuticals revenue at Rs. 1,238 Crore, contributing 55% to revenue, up 54% YoY and 12% QoQ • Life Science Ingredients revenue at Rs. 968 Crore, contributing 43% to revenue, up 30% YoY and 5% QoQ •
Slide 32: Income Statement – FY18
Income Statement – FY18 Particulars FY17 FY18 YoY Growth (Rs Crs) (%) Total Revenue from Operations (Net of Excise) 5,861 7,518 28% Pharmaceuticals 3,104 4,013 29% Life Science Ingredients 2,576 3,328 29% Drug Discovery Solutions 182 176 -3% Total Expenditure 4,516 5,999 33% Other Income 25 40 61% E
Slide 33: Financial Highlights – FY18
Financial Highlights – FY18 • Consolidated revenue at Rs. 7,518 Crore, up 28% YoY • Pharmaceuticals revenue at Rs. 4,013 Crore, up 29% YoY, contributing 53% to the revenues • LSI revenue at Rs. 3,328 Crore, up 29% YoY, contributing 44% to the revenues • Drug Discovery Solutions revenue at Rs. 176 Cr
Slide 34: Segmental Revenue Analysis – FY18
Segmental Revenue Analysis – FY18 Revenue • Company reports highest-ever (Rs. Crs.) Revenue YoY Segmental Revenue Analysis revenue of Rs. 7,518 Crore, driven Mix (%) Growth % FY17 FY18 by improvement in Pharmaceuticals 3,104 4,013 53% 29% Pharmaceuticals and Life Science Generics 1,448 1,375 18% -5%
Slide 35: Pharmaceuticals Segment Highlights
Pharmaceuticals Segment Highlights Geo-wise Revenue (Rs crs) Q4'FY17 Q3'FY18 Q4'FY18 Mix % YoY % QoQ % ROW 6.7% International 767 1,067 1,203 97% 57% 13% Europe & India Japan 2.8% North America 580 915 992 80% 71% 8% 10.4% Europe & Japan 130 85 129 10% -1% 51% ROW 57 66 82 7% 44% 24% North America 8
Slide 36: Pharmaceuticals Segment Highlights
Pharmaceuticals Segment Highlights • Pharmaceuticals revenue at Rs. 4,013 Crore, up 29% YoY, contributing 53% to the revenues • Specialty Injectables reported revenues of Rs. 2,639 Crore, showing robust growth of 59% YoY, contributing 66% to Pharma segment sales as compared to 53% in FY17 • Revenues
Slide 37: Portfolio of R&D products – Filings and Approvals
Portfolio of R&D products – Filings and Approvals Product pipeline as on March 31, 2018 Dosage (Orals) Steriles Region Total Filings Approval Pending Total Filings Approval Pending US 94 59 35 12 10 2 Canada 22 22 - 13 13 - Europe 103 95 8 10 10 - ROW 710 504 206 44 40 4 Total 929 680 249 79 73 6 We
Slide 38: Portfolio of R&D products – Filings and Approvals
Portfolio of R&D products – Filings and Approvals Dosage (Orals) Filed 94 ANDAs in the US i. 59 ANDAs have been approved and 35 ANDAs are pending approval ii. Filed 10 ANDAs in FY18 (in-house) + 1 Inlicensed product Made 835 filings in ROW (ex-US) markets including Canada, Europe and Japan i. 62
Slide 39: LSI Segment Highlights
LSI Segment Highlights Geo-wise Revenue (Rs crs) Q4'FY17 Q3'FY18 Q4'FY18 Mix % YoY % QoQ % ROW International 335 371 374 39% 12% 1% 12.8% Europe, Europe, North America and Japan 227 243 250 26% 10% 3% North America and India ROW 108 128 124 13% 15% -3% Japan 61.3% India 408 551 593 61% 45% 8% 25.9%
Slide 40: LSI Segment Highlights
LSI Segment Highlights FY18 revenue at Rs. 3,328 Crore, up 29% YoY, contributing 44% to the revenues Specialty Intermediates: • Revenues at Rs. 970 Crore, up 7% YoY • Launched 7 products during the year and 6 more to be launched in FY19 • Commissioned cGMP Plant in Bharuch for supplies to pharma and
Slide 41: Drug Discovery Solutions Segment Highlights
Drug Discovery Solutions Segment Highlights Revenue at Rs. 176 Crore during FY18 • Pipeline of Integrated Drug Discovery Projects, functional projects & FTE business continues to be strong • Increased effort & focus on in-house proprietary research for out-licensing molecules or onboarding new proje
Slide 42: Expenditure Analysis – Q4'FY18
Expenditure Analysis – Q4’FY18 % of % of % of YoY QoQ Expenses (Rs Crs) Q4'FY17 Q3'FY18 Q4'FY18 Sales Sales Sales Growth % Growth % Material Cost and Change in Inventory 548 34% 707 34% 817 36% 49% 16% Purchases of stock-in-trade 42 3% 79 4% 73 3% 73% -8% Employee benefits expense 324 20% 423 20% 45
Slide 43: Expenditure Analysis – FY18
Expenditure Analysis – FY18 Expenses (Rs Crs) FY17 % of Sales FY18 % of Sales YoY Growth % Material Cost and Change in Inventory 1,814 31% 2,626 35% 45% Purchases of stock-in-trade 185 3% 243 3% 31% Employee benefits expense 1,231 21% 1,556 21% 26% Power and fuel expense 334 6% 425 6% 27% Others 952
Slide 44: Q1'FY19 Results Analysis
44 Q1’FY19 Results Analysis a4
Slide 45: Income Statement – Q1'FY19
Income Statement – Q1’FY19 Particulars Q1'FY18 Q1'FY19 YoY Growth (Rs Crs) (%) Total Revenue from Operations (Net of Excise) 1,556 2,079 34% Pharmaceuticals 811 1,181 46% Life Science Ingredients 700 847 21% Others (incl. Drug Disc. and India Branded Pharma) 45 51 11% Total Expenditure 1,219 1,641 3
Slide 46: Financial Highlights – Q1'FY19
Financial Highlights – Q1’FY19 • Consolidated revenue at Rs. 2,079 Crore, up 34% YoY • Pharmaceuticals revenue at Rs. 1,181 Crore, contributing 57% to revenue, up 46% YoY • Life Science Ingredients revenue at Rs. 847 Crore, contributing 41% to revenue, up 21% YoY • Others (incl. Drug Discovery Solut
Slide 47: Pharmaceuticals Business Highlights
Pharmaceuticals Business Highlights Revenue (Rs. Crs.) Revenue Analysis YoY Growth % Revenue Mix (%) Q1'FY18 Q1'FY19 Specialty Pharmaceuticals 469 816 74% 69% API & Generics 341 365 7% 31% Total 811 1,181 46% 100% EBITDA (Rs. Crs.) EBITDA Analysis YoY Growth % EBITDA Mix (%) Q1'FY18 Q1'FY19 Specialt
Slide 48: Region-wise Revenue - Pharmaceuticals Business
Region-wise Revenue - Pharmaceuticals Business Geo-wise Revenue (Rs crs) Q1'FY18 Q1'FY19 Mix % YoY % ROW International 778 1,159 98% 49% 6.9% Europe & India Japan 2.4% North America 610 985 83% 61% 7.8% Europe & Japan 102 93 8% -9% ROW 65 82 7% 25% North America India 33 28 2% -13% 82.9% Income from
Slide 49: Pharmaceuticals Business Highlights
Pharmaceuticals Business Highlights • Successful USFDA inspection of Jubilant Cadista and CMO Montreal facilities; Establishment Inspection Report (EIR) received for CMO Montreal • Started I-131 MIBG OPTIMUM Phase II Trials in July 2018 with two sites initiated • The information collected from this
Slide 50: Regulatory Status
Regulatory Status Regulatory Cadista Roorkee CMO / Allergy CMO JDI Montreal Nanjangud • All sites successfully Agency USA India Spokane Montreal Canada India inspected and fully compliant with USFDA Apr – May Mar 2017 Sep 2017 May 2018 Sep 2017 Oct 2017 (USA) 2018 regulations Apr 2018 Apr 2018 Oct 2
Slide 51: Portfolio of R&D products – Filings and Approvals
Portfolio of R&D products – Filings and Approvals Product pipeline as on June 30, 2018 Dosage (Orals) Sterile including JDI Region Total Filings Approval Pending Total Filings Approval Pending US 95 60 35 12 10 2 Canada 23 22 1 14 14 0 Europe 103 95 8 8 7 1 ROW 677 478 199 44 40 4 Total 898 655 243
Slide 52: Portfolio of R&D products – Filings and Approvals
Portfolio of R&D products – Filings and Approvals Dosage (Orals) Filed 95 ANDAs in the US i. 60 ANDAs have been approved and 35 ANDAs are pending approval ii. Filed 2 ANDAs in Q1’FY19; expect to file around 10 ANDAs during the year Made 803 filings in ROW markets including Canada, Europe and Jap
Slide 53: Region-wise Revenue – LSI Business
Region-wise Revenue – LSI Business Geo-wise Revenue (Rs crs) Q1'FY18 Q1'FY19 Mix % YoY % ROW International 312 305 36% -3% 10.3% Europe, North America and Japan 204 218 26% 7% Europe, North America and ROW 108 87 10% -20% Japan India 25.7% 64.0% India 388 542 64% 40% Income from Operations 700 847 1
Slide 54: LSI Business Highlights
LSI Business Highlights Specialty Intermediates: • New multipurpose Chlorinated Pyridine plant got commissioned in Q1’FY19 • On track for 6 new product launches in FY19; Commercialized one product and expect to commercialize the balance during the quarter Life Science Chemicals: • New Acetic Anhydri
Slide 55: Region-wise revenue - Others
Region-wise revenue - Others Geo-wise Revenue (Rs crs) Q1'FY18 Q1'FY19 Mix % YoY % ROW International 41 43 86% 6% 6.9% India Europe & 14.2% North America 30 30 59% 1% Japan Europe & Japan 10 10 19% -5% 19.4% ROW 1 3 7% 472% North America India 5 7 14% 57% 59.5% Income from Operations 45 51 100% 11%
Slide 56: Expenditure Analysis – Q1'FY19
Expenditure Analysis – Q1’FY19 YoY Growth Expenses (Rs Crs) Q1'FY18 % of Sales Q1'FY19 % of Sales % Material Cost and Change in Inventory 545 35% 737 35% 35% Purchases of stock-in-trade 38 2% 59 3% 55% Employee benefits expense 310 20% 452 22% 46% Power and fuel expense 90 6% 100 5% 10% Others 234 1
Slide 57: Debt Profile
Debt Profile Particulars 31/03/18 30/06/18 Foreign Currency Loans ($ Mn) ($ Mn) Standalone 9 9 Subsidiaries 358 358 Total 367 367 Rupee Loans (Rs. Crs) (Rs. Crs) Standalone 1,007 1,081 Subsidiaries 79 62 Total 1,086 1,142 Gross Debt (Rs. Crs) (Rs. Crs) Standalone 1,066 1,142 Subsidiaries 2,414 2,514
Slide 58: Outlook
Outlook We expect to deliver higher revenues and operating profits in FY19. The growth drivers for each of the business are expected to be as follows: • Specialty Pharmaceuticals: • New products and current contract execution in Radiopharmaceuticals is expected to drive growth • Addition of new cap
Slide 59: Our Vision & Promise
Our Vision & Promise Visit Us: Web Site: www.jubl.com Jubilant Life Sciences Limited, 1-A, Sector 16-A, NOIDA- 201301 UP, India For Investors: Ravi Agrawal Anupam Jain Ph: +91-120-436 1002 Ph: +91-120-436 1021 E-mail: ravi.agrawal@jubl.com E-mail: Anupam.jain@jubl.com 59