Creating Lasting Value: Investor Presentation - August 2019

Creating Lasting Value
Investor Presentation – August 2019
NSE:SUNPHARMA | BSE:524715 |
Bloomberg:SUNP IN | Reuters:SUN.BO
WWW.SUNPHARMA.COM
Disclaimer
Except for the historical information contained herein, statements in this presentation and
the subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely
result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”,
“plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”,
“potential”, “will pursue” and similar expressions or variations of such expressions may
constitute "forward-looking statements". These forward-looking statements involve a
number of risks, uncertainties and other factors that could cause actual results to differ
materially from those suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to our ability to successfully implement our
strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning
policies, technological changes, investment and business income, cash flow projections, our
exposure to market risks as well as other risks. Sun Pharmaceutical Industries Limited does
not undertake any obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
© Sun Pharmaceutical Industries Limited. All Rights Reserved. 2

Contents
1 Sun Pharma at a glance
2 Long-term Strategy
3 Global Specialty Initiatives
4 Revenue Composition, History & Acquisition Track Record
5 Business Operations, R&D, Manufacturing
6 Corporate Governance
7 Financials – P&L, Balance Sheet, Cash Flows & Ratios
8 Key Milestones Targeted

Sun Pharma at a glance
4th Largest Global Specialty Generic Company *
US • Ranked 8th in US## / Largest Indian Pharma Company in US
India • No. 1 Pharma Company in India
• Amongst the largest Indian Pharma Company in Emerging

Emerging Markets Markets
Rest of World • Expanding presence in Rest of World
Manufacturing Footprint • 44 manufacturing sites across the world
• Presence in more than 100 countries across branded and generic

Market Presence markets
Product Portfolio • Portfolio of more than 2,000 products across the world
Employees • 32,000+ global employee base
• Multiple manufacturing facilities approved by various regulatory

Quality Compliance authorities across the world including USFDA
• Capabilities across dosage forms like injectables, sprays,
R&D and Manufacturing ointments, creams, liquids, tablets and capsules
• Specialty products, branded generics, complex generics, pure
Addressable Segments generics & APIs
*Source: Evaluate Pharma Estimates for 12 months ended Dec 2018
## Source: IQVIA data for 12 months ended April 2019
World’s 4th Largest Specialty Generic Pharma Co
0.0 2.0 Worldwide
2018 4.0Generic Sales
6.0 8.0
(US$ in billions) 10.0 12.0
Mylan 10.8
Teva 8.9
Novartis 8.6
Sun Pharma + Taro 3.9
Pfizer 3.5
Fresenius 3.2
Aurobindo 2.3
Lupin 2.2
Aspen 2.0
Amneal 1.8
Sanofi 1.8
Apotex 1.7
Dr. Reddy 1.6
STADA 1.6
Sawai 1.6
Zydus Cadila 1.6
Source: Evaluate Pharma Estimates for 12 months ended Dec 2018

Sun Pharma today
US Formulations India Branded Generics
8th largest generics company in US* with a strong No.1 ranked with 11 classes of doctor categories
pipeline (108 ANDAs & 6 NDAs awaiting approval) Leading position in high growth chronic therapies
Presence in generics, Specialty and branded segments Specializes in technically complex products
with more than 466 approved products FY19 sales: US$ 1,051 mn (2)
FY19 sales: US$ 1,526 mn (2) Emerging
Western
(1) Markets
• Market cap: US$ 14 bn 19%
Europe &
India Other
• Gross Sales: US$ 4,101 mn (2) Markets #
27%
• EBITDA: US$ 847 mn (21% margin) (2) 12%
Geographical
Revenue
sales split
Break-up
India
• R&D Investment: 7% of Sales Branded API & Others
FY19 FY19 6%
• Globalized supply chain Generics
26%
• 54% owned by promoter group
• Strong balance sheet, low debt US
International Formulation
73%
• Strong product pipeline 37%
Emerging Markets Western Europe, Canada, Japan ANZ & others

Presence in about 80 countries across Africa, Americas, Presence across majority of markets in Western Europe,
Asia and Eastern & Central Europe Canada, Japan and A&NZ
Key focus markets – Brazil, Mexico, Russia, Romania, Product portfolio includes differentiated offerings for
South Africa, and complementary & affiliated markets hospitals, injectables and generics for retail market
FY19 sales: US$ 767 mn (2) FY19 sales: US$ 494 mn (2)
Note:
(1) As of August, 14, 2019 using spot exchange rate of INR /USD = 71.09
(2) Using average exchange rate for FY19 of INR /USD = 69.95
# Includes Western Europe, Canada, Australia & New Zealand, Japan and other markets.
All sales numbers in US$ for 12 months ended March 31, 2019.
* Source: IQVIA data for 12 months ended April 2019

Driving Long Term Growth
• Optimize operational costs

• Enhance share of specialty business
globally • Vertically integrated operations
• Achieve differentiation by focusing on
technically complex products
• Focus on key markets – achieve
critical mass
• Speed to market
• Ensure sustained compliance with Create
global regulatory standards sustainable Cost
revenue streams leadership
Balance Business
profitability & development
investments
for future • Use acquisitions to bridge
critical capability gaps
• Focus on access to products,
• Increasing contribution of
technology, market presence
specialty and complex products
• Ensure acquisitions yield high
• Future investments directed
return on Investment
towards differentiated products
• Focus on payback timelines

Our Specialty Portfolio
• Indication - For plaque psoriasis
• Launched in US in October 2018
• Phased launch in Europe by Almirall starting December 2018 onwards
Ilumya/ • Launched in Australia in December 2018
Ilumetri • Evaluating new indications for Ilumya - Late-breaking phase 2 data shows potential
to improve joint & skin symptoms of Psoriatic Arthritis
• Regulatory filling in Japan in August 2019
• Out licensed to CMS for Greater China market in June 2019
• Indication - For dry eye disease

Cequa • NDA approved in US. Launch preparations are ongoing
• Out licensed to CMS for Greater China market in June 2019
• Indication - For the treatment of severe recalcitrant nodular acne

Absorica
• Currently marketed in US
• Indication – In combination with BLU-U Blue Light Photodynamic Therapy

Levulan Illuminator for treatment of minimally to moderately thick actinic keratoses of the
Kerastick face, scalp, or upper extremities.
• Currently marketed in US for actinic keratosis
Our Specialty Portfolio
• Indication - For LABCC (locally advanced basal cell carcinoma)
Odomzo
• Currently marketed in US, Germany, France, Denmark, Switzerland, Australia and Israel
• Indication - For metastatic castration resistant prostate cancer in combination with

Yonsa methylprednisolone
• Launched in US in May 2018
• Indication - For prevention of ocular pain & treatment of inflammation following cataract
Bromsite surgery
• Launched in US in November 2016
• Indication - For reduction of elevated IOP in patients with open-angle glaucoma or ocular
hypertension
Xelpros • BAK (Benzalkonium chloride) free form of latanoprost
• Launched In US in January 2019
Infugem/ • Gemcitabine (chemotherapy product) in pre-mixed ready to use bags

• Launched in US in April 2019
InfuSMART • Launched in Europe in July 2016

Highly Diversified Revenue Base
Emerging Markets
19% Western Europe &
Other Markets #
12%
API & Others

6%
India Branded FY19 Sales
Formulations Rs.289 billion
26%
US Formulations
37%
# Includes Western Europe, Canada, Japan , Australia, New Zealand and other markets.

Impressive Track Record of Growth
(All Figures in INR Billion)
56.6
71.1
286.9
59.3
38.8
160.0
Adjusted
Sales EBITDA 18.2 Net Profit
18.6
42.7 CAGR CAGR CAGR
9.8 25% 3.9 20% 3.1 18%
FY04 FY09 FY14 FY19 FY04 FY09 FY14 FY19 FY04 FY09 FY14 FY19
23.6
39.6
30.5
16.2
15.5
21.6 22.0
Operating Free Cash 7.6 Adjusted
Cash Flow 0.0 Flow EPS (Rs)
CAGR
FY04 FY09 FY14 FY19
CAGR
2.9 1.3
15% 18%
-10.2
FY04 FY09 FY14 FY19 FY04 FY09 FY14 FY19

Consistent profitability and returns
Gross Margin # EBITDA Margin Net Margin (adjusted)
77% 23%
75%
73% 73%
72% 29% 29% 19%
27% 18%
20% 21% 13% 14%
FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19
ROCE ROE Market Cap (USD Bn)

19% 20% 35
16% 18% 30
15%
14% 25
9% 18
8% 9% 9% 16
# Gross margin= (Net Sales- Material Cost)/ Net Sales * 100
ROCE & ROE exclude one-time exceptional charges (Market Cap as on 31st March )

Profitability
Gross Margin EBITDA Margin Net Margin

77%
75%
73% 73%
72%
29% 29%
28%
66%
64% 64%
63% 63%
23% 23%
21% 19%
20% 18%
19% 19%
18% 13% 14%
19%
13% 14%
10%
8%
8%
Gross margin= (Net Sales – Material Cost) / Net Sales * 100 Sun Pharma Range of Top 9 Indian Pharma Cos. Average
#Top 9 Indian Pharma company include Aurobindo, Cadila Healthcare,
Cipla, DRL, Glenmark, Ipca, Lupin, Torrent and Wockhardt.

Creating Value, Continuously…
Agreement with
Merck for in- Acquired
Began with 5 Acquired Dusa Acquired InSite Acquired Pola
licensing Biosintez in Russia
products Vision ophthalmic Pharma in Japan
Tildrakizumab portfolio
Year 1983 1994 2010 2012 2013 2014 2015 2016 2018 2019
Mkt Cap (US$ Bn) 0.1 7.8 12.3 15.6 19.7 34.6 30.0 18.3 16.4
as of Mar, 31 of
respective years
• Entry into Japan -

Acquired 14 brands
Acquired from Novartis
IPO - Rs. 550 Mn Acquired URL • Acquired Global rights
Acquired Taro Ranbaxy
raised Pharma for Cequa & Odomzo
Sun Pharma Today
32,000+ Invested over Rs.150 Bn Part of NSE Nifty & BSE 44 Manufacturing facilities 73% of sales from
Employees in R&D till date Sensex in India in 6 Continents international markets

Key Deals & Rationale
Year Deals Country Rationale
Licensing agreement with CMS for
2019 Greater China Access to Greater China market for Tildrakizumab & Cequa
Tildrakizumab & Cequa
2018 Acquired Pola Pharma in Japan Japan Access to Japanese dermatology market.
Acquired global rights for Cequa &
2016 Global Enhances specialty pipeline.
Odomzo
2016 Acquired Biosintez Russia Local manufacturing capability to enhance presence in Russian market
Licensing agreement with Almirall for
2016 Europe Access to European market for Tidrakizumab
Tildrakizumab for Psoriasis
2016 Acquired 14 brands from Novartis Japan Entry into Japan
Distribution agreement with Distribution services agreement in India for brand “Oxra” & “Oxramet”®
2016 India
AstraZeneca (brands of dapagliflozin, used for diabetes treatment)
2015 Acquired InSite Vision Inc. US Strengthens branded ophthalmic portfolio in U.S.
Distribution agreement with Distribution services agreement in India for brand “Axcer”® (brand of
2015 India
AstraZeneca ticagrelor, used for the treatment of acute coronary syndrome)
Strengthen position as the 5th largest Global Specialty Generic Pharma
2015 Sun Pharma – Ranbaxy Merger Global Markets Company, No.1 Pharma Company in India & Strong positioning in
Emerging Markets
In-licensing agreement with Merck for
2014 Global Markets Strengthening the specialty product pipeline
Tildrakizumab a biologic for psoriasis
2014 Acquired Pharmalucence US Access to sterile injectable capacity in the US
2012 Acquired DUSA Pharma, Inc. US Access to specialty drug-device combination in dermatology segment
Acquired Taro Pharmaceutical Access to dermatology generic portfolio
2010 Israel
Industries Ltd. Manufacturing facilities at Israel & Canada
1997 Acquired Caraco Detroit, US Entry into US Market

Successful track record of turning around
acquisitions
ROCE 27% 26% 23% 35% 41% 19% 22% 30% 20% 27% 14% 16% 9%
350
8 Early Acquisitions 4 Acquisitions Recent Acquisitions
300 Assets of: Taro

Bryan Dusa
250 Hungary URL
Able Labs Ranbaxy
Chattem InSite Vision
200 Odomzo
Yonsa
150
100
50
-
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
Sales (Rs Bn) EBITDA (Rs Bn)
US Business
37% of Revenues

US Business at a glance
8th Largest Pharma Company in the US Generics Market *
• Largest generic dermatology company and amongst top 5

Dermatology Segment branded dermatology company in the US
• Wide basket of 574 ANDAs & 58 NDAs filed and 466 ANDAs & 52
Comprehensive Portfolio NDAs approved across multiple therapies
Robust Pipeline • 108 ANDAs & 6 NDAs pending with FDA
Market Presence • Presence in generics, branded & OTC segments
• Integrated manufacturer with flexibility for manufacturing

Flexible Manufacturing onshore/ offshore
• Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets,

Dosage Forms Capsules, Drug-Device combination
* Source: IQVIA data for 12 months ended April 2019

US Business - Significant Ramp-up in Sales
Key Milestones in US
Sales in Rs billion
FY98 •Entry in US through Caraco acquisition
10 year CAGR - 21%
•Acquired Taro Pharma – Entry into US

137 135 138 FY10
dermatology market
•Acquired DUSA - Entry in branded specialty

FY13
market
107
•Acquired InSite Vision – Strengthen
98 FY16 ophthalmic portfolio
87
•Tildrakizumab filing in US & Europe
•Acquired Ocular Technologies giving
access to Cequa, a product for treating dry
62 FY17 eyes.
•Launched BromSite in US
•Acquired Odomzo- branded oncology
product from Novartis
35 •Launched Odomzo in US
FY18
23 •US FDA approval for Ilumya
15
11
•Launched Ilumya & Yonsa in US
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
•Received USFDA approval for Cequa

FY19
•Launched Xelpros in US
•Launched Ready-to-Infuse INFUGEMTM

ANDA Pipeline - Significant ramp up
ANDAs Filed and Approved (Cumulative) ANDA Approvals by Therapeutic Area
597 584
572 561 571 574 120
478 103
453 466
438 427
413 422
344
65
47
42
31
19
15 12 12
CNS
CVS
Oncology
Metabolism
Gastro
Skin
Pain
Allergy
Other
Antibiotic
FY14 FY15 FY16 FY17 FY18 FY19 Q1 FY20
Cumulative Products Filed Cumulative Products Approved
(Cumulative no’s for FY16 are lower than FY15 due to Bryan facility divestment.
Ranbaxy numbers added for March’15)
(As of June’19)

India Branded
Generic Business
26% of Revenues

India Business at a glance
No. 1 in India
Market Position** • No. 1 ranked with 8.2% market share
Prescription Ranking## • No. 1 ranked by prescriptions with 11 different classes of doctors
Chronic Segment • Market leader in the chronic segment
Acute Segment • Strong positioning in the acute segment
• Specializes in technically complex products and offers a complete

Product Offering therapy basket
Strong Brand Positioning** • 30 brands in the country’s top 300 pharmaceutical brands
• Top 10 Brands contribute approx. 18% of India revenues

De-risked Growth**
• Growth driven by a basket of brands – low product concentration
Extensive Sales Force • 9,200+ strong field force covering over 400,000 doctors
** - As per AIOCD AWACS data for 12 months ended June’19

## - As per SMSRC data for June’19

Largest Pharma Company in India
Market Share Branded Generic Sales in India as of 12 Months ended June 2019 (US$ in mn)
1,462
Sun Pharma 8.2%
1,085
Abbott + Abbott HC + Novo 6.2%
826
Cipla 4.7%
718
Zydus + Biochem 4.1%
636
Lupin 3.8
633
Mankind 3.7%
604
Alkem + Cachet + Indchemie 3.5%
547
Torrent 3.3%
495
Intas 3.0%
513
Glaxo 2.9%
497
Macleods 2.8%
413
Emcure+Zuventus 2.5%
Source: AIOCD AWACS MAT June 2019 data converted at average of Rs. 69.56/US$

India Business – Sales ramp-up
Leadership in chronic segment; Strong positioning in acute segment
30 brands in top 300 brands of country
Sales in Rs Billion
Therapeutic Revenue Break-up
10 year CAGR -14%
Others
Impact of Opthalmology 3% 4% Cardiology
80
Ranbaxy 77 Urology 3% 18%
Acquisition 73 Gynaecology, 3%
71
67 Respiratory 4%
Vitamins /
Minerals /
Nutrients, 4%
Dermatology, 6% Market Share Neuro-Psychiatry

8.2% 17%
37
Pain / Analgesics
29 30 7%
24
20
17
Diabetology, 9%
Gastroenterology
Anti-Infectives 12%
10%
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
• As per AIOCD AWACS – June‘19

Leadership in key therapeutic areas*
Number 1 Ranking with 11 Doctor Categories*
Prescription Ranking
Specialist Feb ’15 Feb ‘16 Feb ‘17 Feb ‘18 Feb ’19
Psychiatrists 1 1 1 1 1
Neurologists 1 1 1 1 1
Cardiologists 1 1 1 1 1
Orthopaedic 1 1 1 1 1
Gastroenterologists 1 1 1 1 1
Nephrologists 1 1 1 1 1
Diabetologists 1 1 1 1 1
Ophthalmologists 1 1 2 1 1
Dermatologists 1 1 1 1 1
Urologists 1 1 1 1 1
Consulting Physicians 1 1 1 1 1
Oncologists 2 1 1 1 2
Chest Physicians 1 1 2 1 2
*Ranks based on prescription share

Source-Strategic Marketing Solutions and Research Centre (SMSRC) Prescription Data
25
Creating Lasting Value - Investor Presentation
Best-in-class field force productivity
Sales Per Representative (Rs. Mn)
Field Force Productivity
11.0 Impact of
Ranbaxy
10.1 Acquisition
Sun
• Rs 8.8 Mn/ MR
Pharma
8.6 8.8
8.3
7.8 Industry
7.4 • Rs 5.2 Mn/ MR
Average*
* Approximation based on brokerage reports
• Well trained and scientifically

oriented sales representatives team
with strong performance track record
FY13 FY14 FY15 FY16 FY17 FY18 FY19 • Field force with highest productivity
amongst key players in India
Sales Per Representative (Rs. Mn)

Emerging Markets
19% of Revenues

Emerging Markets Business at a glance
Largest Indian Company in Emerging Markets
Global footprint • Presence in about 80 markets
• Brazil, Mexico, Russia, Romania, South Africa and complementary

Focus Markets & affiliated markets
Product Portfolio • Extensive basket of branded products
Customer Focus • Strong relationships with doctors and medical practitioners
Sales Force • Approximately 2,300 Sales Representatives
• To cross-sell products between Sun Pharma and Ranbaxy

Opportunity marketing infrastructure
Local Manufacturing • Across 7 countries
• Acquired Biosintez to enhance presence in Russian market in

Russia Acquisition Nov’ 16 – Gives access to local manufacturing facility.

Western Europe, Canada, Japan, ANZ & Other
Markets
12% of Revenues

Western Europe & Other Markets at a glance
Amongst the leading Indian Companies

• Across all major markets in Western Europe, Canada, A&NZ, Japan
Market Presence and few other markets
• Expanding basket of products including injectables and hospital
Product Portfolio products as well as products for retail market
• Development and commercialization of complex generics and
Focus differentiated products to drive sustainable and profitable growth
Sales Force • Distribution led model
• At Canada, Japan, Australia, Israel and Hungary + Servicing from

Local Manufacturing India facilities
• Acquired 14 established prescription brands from Novartis in

Japan Presence March’16.
• Acquired Pola Pharma in Japan in Jan‘19

Global Consumer Healthcare Business

Global Consumer Healthcare Business
at a glance
An Attractive Opportunity
India • Amongst the top 10 consumer healthcare companies
Global Presence • Operates in about 20+ countries
• Romania, Russia, South Africa, Nigeria, Myanmar, Ukraine, Poland,

Focus Markets Thailand, Belarus, Kazakhstan, Morocco and UAE
Strong Brand Equity • Enjoy strong brand equity in 4 countries
Sales Force • Promoted through dedicated sales force in each market
• Amongst top 10 consumer healthcare companies in India,

Strong Positioning Romania, Nigeria & Myanmar

Active Pharmaceutical
Ingredients (API) Business
6% of Revenues

API Business
Backward Integration – Strategic Importance
• Backward integration provides cost competitiveness and supply

Strategic Importance reliability
Customers • Large generic and innovator companies
Product Portfolio • Approximately 300 APIs
Pipeline Development • Approx. 20 APIs scaled up annually
• 315 DMF/CEP approvals to date

Regulatory approvals
• 414 DMF/CEP Filings to date
Manufacturing • Across 14 facilities

Research & Development

Research & Development
Cumulative R&D Spend of over Rs 150 billion to date
• R&D spend at 7% of sales for FY19

R&D Spend
• Strong cash flows & large scale to support R&D investments
• Strong research teams in generics, finished dosage development,

Capabilities biological support, chemistry
• Approx. 2,000 scientists globally with capabilities across dosage

Organization forms like orals, liquids, ointments, gels, sprays, injectable
IPR Support • Strong team of intellectual property experts supporting R&D
• Developing non infringing formulations and development of

Focus specialty/complex products

R&D Investments
R&D Investments Filings and Approvals
6.3% 6.5% 7.2% 8.3% 7.6% 8.6% 6.9% ANDA NDA/BLA DMF/CEP Patents
23.0 23.1
22.5 574 414 1067
58
19.6 19.8
52 961
466 315
10.4
7.0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 Filed Approved Filed Approved Filed Approved Filed Granted
R&D Investments (Rs Bn) R&D Investments (% of Sales)

As of June 30, 2019

Global Manufacturing
Presence

Global Manufacturing Presence
World Class Manufacturing Infrastructure
• 44 manufacturing facilities across India, the Americas, Asia, Africa,

Extensive Global Footprint Australia and Europe
• Vertically integrated network across six continents enabling high

Integrated Network quality, low cost and a quick market entry across the geographies
• One of the few companies that has set up completely integrated

Capabilities manufacturing capability for the production of oncology,
hormones, peptides, controlled substances and steroidal drugs
• High quality manufacturing facilities. Many of the plants have

High Quality received approvals from US FDA, UK MHRA and various other
regulatory authorities
• Ability to manufacture a variety of dosage forms – Orals, Creams,

Dosage Forms Ointments, Injectables, Sprays, Liquids

Global Manufacturing Footprint
Tiszavasvari Haifa Penza
(Hungary) (Israel) (Russia)
Ontario (Canada)
Cluj (Romania)
(US)
Giza, (Egypt)
Billerica, MA
New Jersey(US) Saitama, Japan (2 units)
Lagos (Nigeria)
Tennessee Kuala Lumpur
Be-Tabs,
South Africa) (Malaysia)
Gazipur, Bangladesh
Cranbury
Port Fairy (Australia)
Wilmington M.A.
Latrobe, (Australia)
(India)
(India)
Baddi
Jammu
Mohali Halol
Toansa Karkhadi
Malanpur Guwahati
Dewas Sikkim (2 units)
Paonta Silvassa
Ankleshwar
Goa
Panoli
Baska Dadra
Ahmednagar
Maduranthakam
Formulation Plant API Plant Formulation & API Plant
Dahej
Finished Dosage Manufacturing
30 Finished dosage manufacturing sites
• India : 14, US : 4, Japan : 2

• Canada, Hungary , Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt, Nigeria
and Russia : 1 each
• Capacities available for a variety of finished dosages
Orals Injectables / Sterile Topicals
Tablets / Capsules Vials Dry powder Creams

Semisolids Ampoules Eye drops Ointments
Liquids Pre-filled Syringes MDI
Suppository Gels Aerosols
Lyophilized Units
41
© Sun Pharmaceutical Industries Limited. All Rights Reserved.
API Manufacturing
14 API manufacturing locations
• India : 9, Australia : 2, Israel : 1, US : 1, Hungary : 1
Panoli & Ahmednagar Australia, Hungary &

(both India) Tennessee (US)
• International regulatory
approvals: USFDA, API • Controlled substances
European Key Plants manufacture
• Stand alone units for

peptides, anti-cancer,
steroids, sex hormones
42
© Sun Pharmaceutical Industries Limited. All Rights Reserved.
Corporate Governance
Our philosophy on corporate governance envisages

working towards high levels of transparency,
accountability and consistent value systems across
all facets of operations
Chairman
Israel Makov
Former President & CEO of
Teva Pharma. Industries Ltd.
Independent Director Independent Director Independent Director
Rekha Sethi Vivek C. Sehgal Gautam B. Doshi

Director General Chairman, Samvardhana Professional with expertise
All India Management Motherson Group & in M&A, Taxation, Accounting
Association (AIMA) Motherson Sumi Systems & Corporate and Commercial
Ltd. Laws.
.
Financials

Financials
Market Capitalisation Rs. 1,000 billion / US$ 14 billion ( All Figures in Rs. Mn )
FY15 YoY FY16 YoY FY17 YoY FY18 YoY FY19** YoY
P&L Summary
Sales 2,72,451 70% 2,78,881 2% 3,02,642 9% 2,60,659 -14% 2,86,863 10%
Gross Profit 2,05,059 55% 2,15,577 5% 2,21,335 3% 1,86,413 -16% 2,08,173 12%
EBITDA 77,208 9% 75,594 -2% 87,751 16% 51,846 -41% 59,280 14%
Net Profit 45,394 44% 45,457 0% 69,644 53% 20,957 -70% 26,654 27%
# #
Net Profit (Adjusted) 47,771 -16% 52,309 9% 69,644 33% 33,006 # -53% 38,798 # 18%
R&D Spend 19,550 88% 23,025 18% 23,138 0% 22,489 -3% 19,847 -12%
BS Summary Mar'15 YoY Mar'16 YoY Mar'17 YoY Mar'18 YoY Mar'19 YoY
Shareholders Funds 2,80,415 51% 3,29,825 18% 3,66,397 11% 3,83,141 5% 4,14,091 8%
Loan Funds 75,724 204% 83,164 10% 80,910 -3% 97,518 21% 98,934 1%
Net Fixed Assets 96,848 66% 1,24,130 28% 1,49,404 20% 1,57,110 5% 1,72,919 10%
Investments 35,028 26% 18,298 -48% 11,919 -35% 71,430 499% 79,030 11%
Cash and Bank Balances 1,09,771 45% 1,31,817 20% 1,51,408 15% 99,290 -34% 72,760 -27%
Inventory 56,669 81% 64,225 13% 68,328 6% 68,810 1% 78,860 15%
Sundry Debtors 50,928 131% 67,757 33% 72,026 6% 78,150 9% 88,840 14%
Sundry Creditors 32,430 144% 35,830 10% 43,954 23% 47,660 8% 41,480 -13%
#
FY15 -Adjusted for Rs 2.4 bn for settlement provision for Texas Medicaid Program litigation
FY16 -Adjusted for Rs 6.9 bn of exceptional items related to Ranbaxy integration
FY18 -Adjusted for Rs 12.1 bn provision related to Modafinil settlement & deferred tax adjustment
FY19 -Adjusted for Rs 12 bn provision related to Modafinil settlement
**FY19 – Includes a one-time sales reduction of Rs 10,850mn related to change in distribution for
India business
Sales Break-up
In INR Billion In USD Million
Sales 303 261 287 4,511 4,044 4,101
245
16
385
26 18 229 264
15 35 675 461 494
45
30
54 751 767
48
138 2051
1357
87 107 1526
77 80 1155 1246
73 1051
FY17 FY18 FY19 FY17 FY18 FY19

India Formulations US Formulations #Exchange Rate : US$1 = Rs 67.07 (for FY17)
US$1 = Rs 64.46 (for FY18)
Emerging Markets Rest of World
US$1 = Rs 69.95 (for FY19)
API+Others

EBITDA Trend
In INR Billion
Sales 272 279 303 261 287
% of Sales
25% 23%
27% 28% 27%
16% 17%
16%
21% 21%
30% 33% 28%

31% 31%
29% 27% 29%

20% 21%
FY15 FY16 FY17 FY18 FY19
EBITDA Other Expenditure Personnel Costs Material Costs

Cash Flow
Net Cash From Operating Activities (Rs Bn) Free Cash Flow (Rs Bn)
71
67
34
56 33 33
31
40 39
20
22
FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19
(10)

Financial Ratios
FY15 FY16 FY17 FY18 FY19 **
Gro w th (%)
Sales 70.2 2.4 8.5 (13.9) 10.1
Gross Profit 55.1 5.1 2.7 (15.8) 11.7
EBITDA 8.5 (2.1) 16.1 (40.9) 14.3
Net Profit 44.5 0.1 53.2 (69.9) 27.2
Net Profit (Adjusted) (15.6) # 9.5 # 33.1 (52.6)# 17.5 #
Marg ins (%)
Gross Margin 75.3 77.3 73.1 71.5 72.6
EBITDA Margin (%) 28.3 27.1 29.0 19.9 20.7
Net Margin 16.7 16.3 23.0 8.0 9.3
Net Margin (Adjusted) 17.5 # 18.8 # 23.0 12.7 # 13.5#
Re turn (%)
ROCE 14.3 14.6 16.1 7.8 8.5
ROE 18.5 17.6 19.8 8.7 9.4
Othe rs
Debt / Equity 0.27 0.25 0.22 0.25 0.24
Fully Diluted EPS 18.9 18.9 28.9 8.7 11.1
#
Fully Diluted EPS (Adjusted) 19.9 21.7 # 28.9 13.8 # 16.2 #
R&D Sp e nd % o f Ne t Sale s 7.2 8.3 7.6 8.6 6.9
Revenue 6.7 8.0 7.1 7.9 6.6
Capital 0.4 0.3 0.6 0.7 0.3
#
FY15 -Adjusted for Rs 2.4 bn for settlement provision for Texas Medicaid Program litigation
FY16 -Adjusted for Rs 6.9 bn of exceptional items related to Ranbaxy integration
FY18 -Adjusted for Rs 12.1 bn provision related to Modafinil settlement & deferred tax adjustment
FY19 -Adjusted for Rs 12 bn provision related to Modafinil settlement
**FY19 – Includes a one-time sales reduction of Rs 10,850mn related to change in distribution for India business

Key Financials Q1 FY20
( All Figures in Rs. Mn )
Q1 FY20 Q1 FY19 CHANGE FY19 ** FY18 CHANGE
Gross Sales 82,593 71,388 15.7% 2,86,863 2,60,659 10.1%
Gross Profit 58,015 50,320 15.3% 2,08,173 1,86,413 11.7%
Gross Margin 70.2% 70.5% 72.6% 71.5%
EBITDA 18,806 15,214 23.6% 59,280 51,846 14.3%
EBITDA Margin 22.8% 21.3% 20.7% 19.9%
Net Profit 13,875 10,573 31.2% 26,654 20,957 27.2%
Net margin 16.8% 14.8% 9.3% 8.0%
# #
Net Profit (Adjusted) 13,875 10,573 31.2% 38,798 33,006 17.5%
Net margin (Adjusted) 16.8% 14.8% 13.5% 12.7%
R&D 4,223 5,001 -15.6% 19,847 22,489 -11.7%
R&D as % of Net Sales 5.1% 7.0% 6.9% 8.6%
EPS (Diluted) INR 5.8 4.4 31.2% 11.1 8.7 27.2%
# #
EPS (Diluted) INR (Adjusted) 5.8 4.4 31.2% 16.2 13.8 17.5%
# : Adjusted Rs 2.58 bn for FY18 provision on account of re-measurement of deferred tax assets.
# : Adjusted Rs 9.5 bn for FY18 & Rs 12.1 bn for FY19 provision related to Modafinil settlement in US.
** FY19 – Includes a one-time sales reduction of Rs 10,850mn related to change in distribution for India business

Sales Breakup Q1 FY20
( All Figures in Rs. Mn )
Q1 FY20 Q1 FY19 CHANGE FY19 ** FY18 CHANGE

Formulation
India 23,137 21,520 8% 73,483 80,293 -8%
US 29,474 25,437 16% 1,06,713 87,466 22%
Emerging Markets 13,486 13,087 3% 53,625 48,392 11%
ROW 11,591 7,178 61% 34,554 29,740 16%
Sub-total 77,688 67,222 16% 2,68,375 2,45,891 9%
Bulk 4,612 3,942 17% 17,303 13,993 24%
Others 293 225 30% 1,185 775 53%
Gross Sales 82,593 71,388 16% 2,86,863 2,60,660 10%

** FY19 – Includes a one-time sales reduction of Rs 10,850mn related to change in distribution for India business
US Formulations
India Branded Generics

28% 30%
16% 18%
Emerging Markets Q1 Q1
Rest of World FY20 14% FY19 10%
6% 6%
API & Others 36% 36%
# Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets

Key Milestones targeted for future
• Enhance share of specialty/branded business

US
• Continue to focus on complex generics and high entry barrier segments
Business
• Ensure broad product offering to customers across multiple dosage forms
• Improve productivity of India business

India • Maintain leadership position in a fiercely competitive market
Business • Continuously innovate to ensure high brand equity with doctors
• Continue to evaluate in-licensing opportunities for latest generation patented products
EM & • Gain critical mass in key markets

RoW • Enhance product basket in emerging markets
Business • Improve profitability in developed European markets

Key Milestones targeted for future
Global
Consumer • Maintain leadership in existing markets through focus on innovative solutions
• Enhance presence in high growth markets
Healthcare
• Focus on developing complex products across multiple dosage forms

R&D
• Invest to further build on specialty pipeline
• Ensuring 24x7 compliance to cGMP is imperative for a global business

Regulatory/
• Continuously enhance systems, processes, human capabilities to ensure compliance
Quality with global regulatory standards
• Target sustainable and profitable growth

Financial
• Focus on improving ROCE

FY20 Guidance
Consolidated Revenues • Low to mid teen growth over FY19
R&D Investments • Approximately 8%-9% of revenues to be invested in R&D
Investing for Future • Invest in R&D and in building the specialty business

Sun Pharma at a glance
4th Largest Global Specialty Generic Company *
US • Ranked 8th in US## / Largest Indian Pharma Company in US
India • No. 1 Pharma Company in India
• Amongst the largest Indian Pharma Company in Emerging

Emerging Markets Markets
Rest of World • Expanding presence in Rest of World
Manufacturing Footprint • 44 manufacturing sites across the world
• Presence in more than 100 countries across branded and generic

Market Presence markets
Product Portfolio • Portfolio of more than 2,000 products across the world
Employees • 32,000+ global employee base
• Multiple manufacturing facilities approved by various regulatory

Quality Compliance authorities across the world including USFDA
• Capabilities across dosage forms like injectables, sprays,
R&D and Manufacturing ointments, creams, liquids, tablets and capsules
• Specialty products, branded generics, complex generics, pure
Addressable Segments generics & APIs
*Source: Evaluate Pharma Estimates for 12 months ended Dec 2018
## Source: IQVIA data for 12 months ended April 2019
Thank You!
For more information please contact:
Investors:
Nimish Desai
Thank You
Tel : +91 22 4324 4324, Ext 2778
Tel Direct +91 22 43242778
nimish.desai@sunpharma.com
Corporate Address:
SUN HOUSE, CTS No. 201 B/1, Western Express Highway, Goregaon (E), Mumbai 400063
© 2017 Sun Pharmaceutical Industries Limited., All Rights Reserved.
“SUN Pharma”, The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited.
This material was used during an oral presentation; it is not a complete record of the discussion. This work may
not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or
form or in any media without the prior written consent. All product names and company names and logos
mentioned herein are the trademarks or registered trademarks of their respective owners.
NSE:SUNPHARMA, BSE: 524715, Reuters: SUN.BO, Bloomberg: SUNP IN
CIN: L24230GJ1993PLC019050
www.sunpharma.com

Creating Lasting Value: Investor Presentation - August 2019

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Creating Lasting Value: Investor Presentation - August 2019

Uploaded by

Copyright:

Available Formats

Creating Lasting Value

Investor Presentation – August 2019

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 2

3 Global Specialty Initiatives

4 Revenue Composition, History & Acquisition Track Record

5 Business Operations, R&D, Manufacturing

7 Financials – P&L, Balance Sheet, Cash Flows & Ratios

8 Key Milestones Targeted

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 3

India • No. 1 Pharma Company in India

• Amongst the largest Indian Pharma Company in Emerging

Rest of World • Expanding presence in Rest of World

Manufacturing Footprint • 44 manufacturing sites across the world

• Presence in more than 100 countries across branded and generic

Employees • 32,000+ global employee base

• Multiple manufacturing facilities approved by various regulatory

Source: Evaluate Pharma Estimates for 12 months ended Dec 2018

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 5

Emerging Markets Western Europe, Canada, Japan ANZ & others

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 6

• Optimize operational costs

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 7

• Indication - For dry eye disease

• Indication - For the treatment of severe recalcitrant nodular acne

• Indication – In combination with BLU-U Blue Light Photodynamic Therapy

• Indication - For metastatic castration resistant prostate cancer in combination with

Infugem/ • Gemcitabine (chemotherapy product) in pre-mixed ready to use bags

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 9

API & Others

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 10

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 11

20% 21% 13% 14%

ROCE ROE Market Cap (USD Bn)

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 12

Gross Margin EBITDA Margin Net Margin

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 13

• Entry into Japan -

Sun Pharma Today

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 14

2014 Acquired Pharmalucence US Access to sterile injectable capacity in the US

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 15

300 Assets of: Taro

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 17

• Largest generic dermatology company and amongst top 5

Robust Pipeline • 108 ANDAs & 6 NDAs pending with FDA

Market Presence • Presence in generics, branded & OTC segments

• Integrated manufacturer with flexibility for manufacturing

• Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets,

* Source: IQVIA data for 12 months ended April 2019

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 18

•Acquired Taro Pharma – Entry into US

•Acquired DUSA - Entry in branded specialty

•Received USFDA approval for Cequa

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 19

ANDAs Filed and Approved (Cumulative) ANDA Approvals by Therapeutic Area

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 20

© Sun Pharmaceutical Industries Limited. All Rights Reserved. 21

Market Position** • No. 1 ranked with 8.2% market share

Prescription Ranking## • No. 1 ranked by prescriptions with 11 different classes of doctors

Chronic Segment • Market leader in the chronic segment

Acute Segment • Strong positioning in the acute segment

• Specializes in technically complex products and offers a complete

• Top 10 Brands contribute approx. 18% of India revenues