Investor Presentation June 2014 BSE: Symbol: ALEMPHARM Code: 533573 - PowerPoint PPT Presentation

Alembic Pharmaceuticals Limited Investor Presentation June 2014 BSE: Symbol: ALEMPHARM Code: 533573 NSE: Symbol: APLLTD ISIN: INE901L01018 www.alembic-india.com

Safe Harbour 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; trend towards 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 Alembic Journey 2003 State-of-the-art 2001 Formulations facility for Starts Regulatory 1972 manufacturing Markets of "Althrocin"- a Cephalosporin C 1971 brand of Erythromycin Erythromycin launched 1961 manufactured for the first Lal Bahadur time in India 1940 Shastri, the then Started Prime minister 1907 manufacturing inaugurates the cough syrup, Penicillin plant Started vitamins, tonics manufacturing and sculpture tinctures and drugs alcohol at Vadodara

The Alembic Journey 2014 - Para IV filed 2011 - Cumulatively 64 ANDAs filed, - ANVISA (35 ANDA/NDA 2010 approvals approved) - Aggressive and 66 DMFs - Azithral sales ANDAs and 2009 Reach INR DMFs filing 1000 million Addressed mark 2007 chronic therapies - Demerger AL-APL through Acquisition of multiple 2006 Non-Oncology marketing Business of divisions US FDA M/s Dabur 2004 approvals for Pharma Ltd. API and State-of-the-art Formulation Research Plants Centre established in Vadodara

Strategic Advantage Alembic Research Centre is Well-developed the first in India to be Infrastructure facility - Information Security Certified 3 US FDA approved plants High-end quality / Highly talented pool of RA structure 350 Research Scientists Manufacturing excellence R&D / F&D / Captive with optimal cost benefits Bio-equivalence facility Therapy focused marketing Therapy focused marketing Strong partnership Long term through 15 marketing arms through over 4,400 marketing staff and alliance relationship with on PAN India basis covering over 1.8 lacs doctors in Generic space API customers

Alembic Research Centre State-of-the-art Analytical & IPR infrastructure R&D FACILITY F&D CAPABILITIES BIO EQUIVALENCE CENTRE R&D Centre has been Expertise in Drug Deliveries State-of-the-art 90-bedded new recognized by DSIR, and Niche Formulations Bio Centre Govt. of India Well-defined Processes 100 Bio Pilot Studies High-end R&D Equipment - and Quality Systems NMR XRD, TGA, DSC, LCMS Capabilities in Solid Oral, 50 Pivotal Studies World-class Infrastructure Liquid Oral Products

Research Capabilities FORMULATIONS API 64 66 60 ANDA Filing ANDAs filed DMFs filed ANDAs filed DMFs filed with DMFs Filing DMFs Filing 35 ANDA / NDA approvals 64 64 61 61 66 66 66 66 57 57 60 60 54 54 44 44 45 45 37 37 32 32 25 25 25 32 13 12 13 9 7 6 6 4 3 0 Up to 2010 10-11 11 2011 11-12 12 2012-13 13 2013 13-14 14 Q1 1 2014-15 15 Up p to 2010 010-11 11 2011-12 12 2012-13 13 2013-14 14 Q1 2014-15 15 2009 2009-10 10 2009 09-10 10

Manufacturing Infrastructure Formulations - Generics API Branded Formulations (Regulatory Markets) USFDA, MCC, MHRA, Formulations plant at USFDA, EDQM, TGA, WHO ANVISA, TPD approved Baddi, Himachal Pradesh approved API facility at formulations facility at Panelav Panelav and at Karkhadi Current annual production capacity of plus 5 billion tablets/capsules. Further being expanded to 7 billion tablets/capsules in the current year.

Manufacturing Infrastructure Certifications

Effective Marketing PAN India Marketing and Distribution Network OSTEOFIT ZENOVI Orthopedics Gynecology SPECIA Cardiology SUMMIT EYECARE Diabetes INTENSA Cardiology ENTERON Urology Ophthalmology Diabetes Critical Care Gastroenterology GASTRON ALCARE CORAZON Gynecology Gastroenterology RESPIRATORY Cardiology High End Diabetes Respiratory SPECIALITY MARKETING MAXIS CORIUM DIVISION Rural Dermatology Focused PHARMA MEGACARE General Acute General Acute Division Division

Major Product Portfolio Top Therapatic Ranking * Other Therapatic Products Area Products Area Rekool Gastroenterology Azithral Anti Infective 38 Zeet/Bro-Zeet Cough & Cold Althrocin 61 Anti Infective Tellzy Cardiology Wikoryl Respiratory 161 Rosave Cardiology Sharkoferrol Tonic Roxid 165 Anti Infective Tetan Cardiology 293 Gestofit Gynecology Livfit Hepaprotectives Zofix Anti Infective Ulgel Antacid and Anti Flatulant Glisen Anti Diabetic Ovigyn Gynecology * Source: ORG June, 2014

Growth Drivers Branded Formulations Enhanced focus on existing branded business Through effective pan-India distribution Expected network and therapy based marketing annual growth and by pushing ahead acute and chronic segments like anti-infectives and cough 15-18% & cold medications Launch 20-25 new products Launch of new products to boost sales momentum and brand build up Enter into new therapeutic segment Corazon for Cardio and Alembic Respiratory for High end Respiratory launched in FY 2014-15

Growth Drivers International Generics Superior cost efficiency Position Alembic as a cost efficient dependable quality manufacturer Expanded annual production capacity Annual production enhanced from 2.6 billion tablets/capsules to 5 billion tablets/capsules. Further being expanded to 7 billion tablets/ capsules in the current year. ANDA filings and approvals for off-patent drugs Over the next five years, products that currently generate more than USD 142 billion In sales are expected to go off-patent. Alembic can tap these opportunities by launching new generic products at appropriate times.

Financial Highlights – Quarterly Consolidated Q I - FY 14-15 INR million Q I / 14-15 Q I / 13-14 Growth % Sales Business Share '15 Formulation India Branded 2,233 1,920 45% 16% India Generics 252 264 5% -5% International Branded 227 150 5% 51% International Generics 1,138 33% 855 23% API 1,063 1,070 21% -1% Export Incentive 48 29 16% 4,961 4,288 100% Grand Total Total Domestic 2,784 2,412 56% 15% 2,177 44% 16% Total Export 1,876

Financial Highlights – Quarterly Result Highlight (Consolidated) Q I - FY 14-15 INR million Q I / 14-15 Growth % Particulars Q I / 13-14 EBDITA (Before R&D) 1,262 939 34% 35% EBDITA (Post R&D) 967 715 EBDITA % 16.7% 19.5% PBT 849 605 40% PAT 39% 647 466

Financial Highlights – 2013-14 Consolidated FY 2013-14 INR million 2013-14 2012-13 Growth % Sales Business Share '14 Formulation India Branded 8,506 7,484 46% 14% India Generics 1,207 1,262 6% -4% International Branded 736 558 4% 32% International Generics 4,684 99% 2,358 25% API 3,388 3,505 18% -3% Export Incentive 163 93 22% 18,684 15,260 100% Grand Total Total Domestic 10,411 9,971 56% 4% 8,273 44% 56% Total Export 5,289

Financial Highlights – 2013-14 Result Highlight (Consolidated) FY 2013-14 INR million Growth % Particulars 2013-14 2012-13 EBDITA (Before R&D) 4,741 45% 3,263 3,577 2,520 EBDITA (Post R&D) 42% EBDITA % 16.5% 19.2% PBT 3,106 2,064 51% PAT 43% 2,355 1,653

Revenue Overview Sales Composition Q1 FY 14-15 API Export Export Incentive 1% 15% API Domestic 6% India Branded Formulations International Generics 45% 23% International Branded Formulation India Generics 5% 5%

Revenue Overview Sales Composition Therapy Based Sales Break up Q1 FY 14-15 31% Anti Infectives Business Cough & Cold 10% General 41% Domestic Domestic Branded Branded 21% Gastrology Business Business 12% Cardiology Gynecology 11% 5% Orthopedics 6% Anti Diabetic 2% Nephrology/Urology 2% Ophthalmology Specialty 59% (Source : ORG June 2014)

Revenue Overview Sales Composition FY 13-14 API Export Export Incentive 1% 15% API Domestic 3% India Branded Formulations International Generics 46% 25% International Branded Formulation India Generics 4% 6%

R & D Expense Increased Thrust on Research to create Intellectual Property R&D spend as a % to Sales 7.00% 6.04% 5.06% 4.78% 4.06% 2010 10-11 11 2011 11-12 12 2012-13 13 2013 2013-14 14 Q1 1 2014-15 15

Shareholding Pattern Alembic Pharmaceuticals Limited Promoter Group 45% Alembic Limited 29% Public 15% Total Paid up Capital FI / FII / MF INR 377.03 million 11% 188.52 million Total No. of Shareholders 49,555 Market Capitalisation INR 50,193 million As on 30th June 2014