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WOCKHARDT LTD

15 YEARS OF VALUE CREATION
Investor Conference 23rd Feb’07

15 Years of Transformation
1992 (IPO)
98% revenue from India 98% revenue from India 800 Wockhardians in India 800 Wockhardians in India

TODAY
67% revenues from outside India 67% revenues from outside India
4800 Wockhardians, 13 nationalities 4800 Wockhardians, 13 nationalities 800 in US & Europe 800 in US & Europe 11 Manufacturing plants 11 Manufacturing plants (8 USFDA & 7 MHRA approved) (8 USFDA & 7 MHRA approved) 2 outside India 2 outside India Organic and Inorganic growth Organic and Inorganic growth

2 Manufacturing plants 2 Manufacturing plants

Organic growth Organic growth

7 acquisitions (including 4 overseas) 7 acquisitions (including 4 overseas) 1 divestment 1 divestment

Small R & D Small R & D

Significant ramp up in R & D Significant ramp up in R & D activity activity

Wockhardt has transformed into a globally competitive pharmaceutical company

Wockhardt's Journey
Rs. crs
Pinewood acquisition

1600
Insulin launched CP , UK acquisition EPO launched Wallis acquisition Dumex acquisition

1400

1200

1000 800 600 400 200
Biotech R & D initiated

Esparma, acquisition EISAI alliance ( Methycobal) Demerger

Hep B launched

GDR issue

Merind acquisition New drug R & D initiated

IPO
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'92

'93

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'98

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'01

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Merind Asian company to launch recombinant insulin Major pharma overseas acquisition – CP Selected for the business SUPERBRAND recognition in pharma sector .First Movers FIRST MOVERS IPO by Indian pharma after economic reforms Pharma company to raise funds through GDR Major pharma acquisition in India .

Performance Snapshot CAGR (last 15 years) Sales Performance • Domestic 23% 15% 43% • International Business Profitability R&D investment IPO investor returns 23% 38% 20% Consistent growth in sales and profitability coupled with significant investments for the future .

2 molecules in Phase I trial 2 molecules in Phase I trial . 250+ patents filed 250+ patents filed . 450 Scientists 450 Scientists . API Chiral Chemistry . 45+ ANDAs filed 45+ ANDAs filed .R&D Multi – disciplinary R&D Skilled Team . NDDS API Chiral Chemistry NDDS . 15 ANDA approvals received 15 ANDA approvals received . 3 products in advanced pre-clinical 3 products in advanced pre-clinical . 100 PhDs 100 PhDs R & D Activity . Biotechnology Biotechnology . 1 molecule in Phase II trial 1 molecule in Phase II trial . NCE NCE .

Fixative cream Spray-dried Nutrition. Lyophilized products. Gels Sterile Cephalosporins. Suspensions Creams. Powders. Cartridges. Fermentation technologies . Fermentation technologies . Ampoules. Cartridges. mammalian cell API’s : 3 major expression systems: yeast. Liquids. Vials. Chemical Sterile Cephalosporins. Pellets. mammalian cell Tablets. Chemical synthesis. Peptide synthesis synthesis. Fixative cream . Gels Creams. Ointments. Suspensions Tablets. Sachets. Denture cleansing tablets. Denture cleansing tablets. Cephalosporins. Capsules. Lyophilized products. Ampoules. Peptide synthesis Spray-dried Nutrition. e-coli. Pellets. Ointments. Sachets. Cephalosporins. Pre-filled syringes Pre-filled syringes API’s : 3 major expression systems: yeast. Capsules.Manufacturing Capabilities Comprehensive Manufacturing Capabilities Steriles Biotech Oral Topical API Others Vials. Liquids. Powders. e-coli.

UK 1998 CP Pharma. India 1998 Wallis Labs. Germany 2004 Dumex. Ireland 2006 .Successful Acquisition Journey Merind. India 2006 Pinewood. UK 2003 Esparma.

India Nigeria (Wockhardt Nigeria Ltd. Lagos) R&D Manufacturing facilities . Osterwedingen) USA (Wockhardt USA Inc. Ireland Germany (esparma GmbH. New York) Corporate Headquarters – Mumbai. Moscow) Wrexham) Pinewood.Wockhardt Ltd Wockhardt UK Ltd. Russia (Wockhardt Russia Ltd.

INDIA BUSINESS .

Wockhardt Vs Industry 10% 13% 28% 7% 9% 18% 2004 2005 Industry Wockhardt 2006 India business has been consistently outperforming the Industry Source Industry – IMS Wockhardt – company data .

India Business .2006 Respiratory 12% Derma 5% Neutraceuticals 22% Pain 18% CNS Nephrology 7% 2% Others 10% CVS 3% Diabetology 8% Antiinfectives 13% 35% growth Chronic 56% Acute 43% Preventive 1% Acute Chronic Preventive Complete Therapeutic Range with a focus on lifestyle segments .

Initiatives Focus on major therapeutic areas Category Nutraceuticals Nephrology Cough Pain Diabetology Ranking 1 1 3 9 9 Growth (2006) 88% 18% 22% 38% 13% Leading position and healthy growth in focused therapies .India Business .

Initiatives Acquisitions Acquired two heritage nutrition brands • Protinex and Farex Doubling of the Nutrition business New division set up – NutriUno • Dedicated task force .India Business .

India Business .Initiatives In-licensing Arrangements LSI for Vitix • Through a focused dermatology division Skin-Uno Zydus Cadila for marketing Doxophylline • Under the brand name Befree Merlin Biociences for Viticolor • To be launched in Q2’07 .

India Business – Outlook GROWTH DRIVERS FOR 2007 • Focus on niche specialties • In-licensing Arrangements • New Therapies • Acquisitions • New products launches Growth momentum to continue .

EUROPEAN BUSINESS .

Ireland acquisition Wockhardt’s largest business Wockhardt’s largest business # CAGR: (+) 81% * * In last 4 years. Germany acquisition Pinewood.European Business mn$ 220 200 180 160 140 120 100 80 60 40 20 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Wallis Acquisition CP . since CP acquisition # considering annualised Pinewood sales . UK acquisition Esparma.

Turnaround Expertise Merind (India) mn $ Sales Operating Margins Operating Profits Acquisition(1998) 40 4% 2 3 years later (2001) 55 21% 12 CP(UK) mn $ Sales Operating Margins Operating Profits Acquisition(2003) 56 6% 3 3 years later (2006) 94 18% 17 .

Turnaround Expertise Dumex Business Break even within 6 months of acquisition Pinewood business To continue turnaround momentum through value creation initiatives •Synergies of Pinewood business with UK business •Synergies of Pinewood business with UK business • Operational cost reduction • Operational cost reduction • Global sourcing • Global sourcing • Robust Product Pipeline of Wockhardt Group • Robust Product Pipeline of Wockhardt Group • Indian efficient and low cost manufacturing base • Indian efficient and low cost manufacturing base .

US BUSINESS .

10 DMFs • 26 filed in 2006.Ramp up in US • 45+ ANDA filed till date • 45+ ANDA filed till date ANDA filings • 26 filed in 2006. 10 DMFs • 8 approvals received • 8 approvals received (more than double vis-à-vis 2005) (more than double vis-à-vis 2005) •5 products launched in 2006 •5 products launched in 2006 (including 3 steriles) (including 3 steriles) • Day 1 launch of Ondansetron injections • Day 1 launch of Ondansetron injections • 25+ ANDAs awaiting approval • 25+ ANDAs awaiting approval • Gaining significant market share • Gaining significant market share Q3’06 Q4’06 Q3’06 Q4’06 Bethanechol Bethanechol Enalapril Enalapril Cefuroxime Axetil Cefuroxime Axetil 41% 41% 19% 19% 14% 14% 25% 25% 16% 16% 12% 12% Products Marketing Achievements .

PERFORMANCE Q4 & FY06 .

122 crore. 87 crores • Increase by 20% . up by 44% Operating margins at 23.Financial Highlights – Q4’ 06 Sales at Rs. growth of 44% Operating Profits increase to Rs.2% Net profits at Rs. 526 crore.

2% • Reduction in material consumption by 220 bps • Other expenses increase by 220 bps Significantly lower margins in Dumex and Pinewood acquisitions Under-utilisation of biotech capacity . growth of 22% • Worldwide Formulation business grows 25% Operating margins maintained at 23.Financial Highlights – 2006 Sales at Rs. 1729 crores.

400 crores • Increase of 22% Net profits at Rs. 302 crores (before exceptional items) • Increase by 17% • Dividend declared : 100% .Financial Highlights – 2006 Operating profits cross Rs.

Financial Highlights – 2006 Sales Growth Operating margins RONW R & D expenditure growth 22% 23.2% 23% 33% .

35 crores . 138 crores Rs. crores Revenue Capital Deferred 61 20 57 • Deferred expenses to be written-off in 3 years.R & D Investment R&D investment of Rs. on commercialization • Post tax impact of deferred expenses – Rs.

Geographical Revenue Split India 39% Growth +28% Europe 41% Growth +32% ROW 10% USA 10% Growth +11% Growth (-)11% .

OUTLOOK 2007 .

2007 Global Sales to cross landmark of $ 500 million Maintain Net Profits in 16-18% range .Outlook .

Outlook .2007 India • Overall growth 20%+ • Dumex portfolio to grow 30% and margin improvement of 10% • Adding new focus divisions – Dermaceuticals & Oncology • 7 new product launches in first half .

Outlook . Steriles and complex APIs (own DMFs) .2007 Europe • Overall growth of business of 50–55% • Pinewood margin improvement of 200 basis points • 40+ New products launch planned in Europe USA • Expect 7 approvals in first half • Sales growth of 50% • 30+ filings planned for 2007 – Focus on NDDS.

2009 .WOCKHARDT STRATEGY 2007 .

WOCKHARDT STRATEGY( 2007 – 2009) Achieve Sales of $1billion Acquire company with topline of ~ $300mn ( so far acquired $86mn) Achieve PAT margin of 16 – 18% .

Geographical Revenue Split 2006 ROW 10% USA 10% Europe 41% India 39% 2009 ROW 10% India 30% USA 15% Europe 45% .

Creation of A New Wockhardt And Laying Down Foundation For A Significant Transformation .