Investor Presentation

June 2013

Safe Harbor
This presentation and the accompanying slides (the Presentation), which have been prepared by Hikal Limited (the Company), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Companys market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the paper industry in India and world-wide, competition, the companys ability to successfully implement its strategy, the Companys future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Companys market preferences and its exposure to market risks, as well as other risks. The Companys actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Hikal Limited

Company Overview

Technology Driven Contract Manufacturing Company for On-Patent Molecules Off-Patent Molecules Contract manufacturing of APIs, AIs Intermediates and Custom Synthesis

Only Company in India to provide Active APIs for Pharmaceuticals and Agrochemicals Diversified Customer base in US, Europe, and Japan Integrated manufacturing facilities approved by Leading Global Companies First Responsible Care custom manufacturing Life Science Company in India

Just the right chemistry

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Introduction

Industry Overview & Potential Hikal An Overview Pharmaceuticals Crop Protection Moving to the next level Financial Highlights
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5 8 20 25 28 30
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Global Industry Potential

Pharmaceutical Industry
Expected growth of ~5 6% in the next 2 years Key Growth Drivers Prevalence of Diseases Worldwide Rising per Capita Income
Market Size : US$ bn

Crop Protection Industry

Expected growth of ~6- 8% in the next 2 years Key Growth Drivers for Crop & Non-Crop Segments Higher prices of the Agricultural Commodities Consolidation within Industry Rising Income & Demand in BRIC Countries for increased productivity in farmlands
Market Size : US$ bn

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Outsourcing Market Growing in Size

Indian CRAMs Market
Global Outsourcing market is expected to grow at 12.6% CAGR Indian CRAMS Sector is expected to double to US$ 7.6 bn 2012; growth of 2x compared to 2010 Contract Manufacturing will register growth of 41.4% Contract Research will register growth of 12.6%
Market Size : US$ bn

Extent of Outsourcing across Value Chain

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CRAMs - Key Growth Drivers

Increasing Generic Drug Utilization
Growing focus of Government on Healthcare Reforms and Cost Reduction

Significant Patent Expiries in US

Drugs worth US$ 97 bn expected to go off patent from 2011-15 in US compared to USS$ 73 bn during 2006-10 period

Efficient R&D and Low Cost Manufacturing will drive Volumes & Margins
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Hikal Locations

Hikal Limited

Business Overview

Pharmaceuticals

Crop Protection

Contract & Custom Manufacturing Generics Human Health Animal Health Track record with and established relationships with Innovators, mid size Pharma, Biotech & Generic Companies

Custom Synthesis and Contract Manufacturing of Agrochemicals, Intermediates and Specialty Chemicals Preferred Supplier to Top Crop Protection Companies

Research & Development

Offers Right Combination of Capabilities, Quality combined with significant Cost Arbitrage Full development & Scale up Service to Innovator Companies , Generic & Biotech Companies

Leverage Strong Relationships to create Business Opportunities across Segments

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Present across the Value Chain

Launch Expiry

Lead molecule identified

Discovery research Pre launch Discovery Research biology & Chemistry Development Pre- Ph Ph Ph Clinc I II a II b Ph III

On patent growing

Off patent mature Full scale Manufacturing

Off patent

Contract Research Hikal R&D Services

Contract Manufacturing Hikal Manufacturing Services

Expertise in Custom Synthesis and Contract Research, with capabilities scaling up from Gram to Kilo and Ton level of Production
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 from R&D to Commercial Manufacturing

HIKAL R&D SERVICES Route Scouting Chemical Process Development Scale-up Kilo Scale production cGMP/ non GMP Customer Site

Technology

Transfer

Chemical Process Development

Scale-up

Non GMP Campaign

Process Validation Commercial Manufacturing

Analytical Method Dev.

Analytical Method Validation

Stability Studies

Regulatory Affairs

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Boards of Directors

Jai Hiremath Chairman & MD

Sameer Hiremath President & Joint MD

Baba Kalyani

Dr. Peter Pollak

Dr. Wolfgang Welter

Sugandha Hiremath

Prakash Mehta

Kannan Unni

Shivkumar Kheny

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Management Team

Mr. Jai Hiremath, Chairman & Managing Director

More than 35 years of experience in Pharmaceutical and Chemical industry Under his leadership, Hikal has become one of the leading Life Sciences company globally. Past President of the Indian Chemical Council (ICC) and the Past Chairman of the Chemical Committee of the Federation of Indian Chamber of Commerce and Industry (FICCI).

Mr. Sameer Hiremath, President & Joint Managing Director

More than 16 years of experience in Plant Operations & Manufacturing at Hikal Chemical Engineer from MIT, Pune and an MBA cum M.S. degree in Information Technology from Boston University, USA

Mr. Sham Wahalekar

Sr. V P, Finance & Company Secretary

Dr. Peter Nightingale

President, Acoris Research

Mr. Ashok Anand

President, Pharmaceuticals

Mr. Satish Sohoni

Sr. V P, Crop Protection

Mr. Anish Swadi

V P, Business Development
Hikal Limited

Ms. Sulabha Sawant

Head HR & Administration
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Management Team

Jai Hiremath Sameer Hiremath Chairman & MD President & Joint MD

Dr. P. Nightingale Dr. V. Ekkundi Acoris Bangalore R&D

Ashok Anand Satish Sohoni Ravi Khadabadi Sham Wahalekar Pharmaceuticals Crop Protection Supply Chain Finance

Anish Swadi Bus. Dvlp.

Sulabha Sawant HR & Admin

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Scientific Advisory Board

Padma Shri in 2000 by the President of India Chevalier de la Lgion d'Honneur Fellow of the Royal Society and a member of the Scientific Advisory Committee to the Prime Minister of India Pharmaceutical Society of Japan (PSJ) The Abbott Prize and the Japanese Peptide Society Award Bhatnagar Prize in Chemistry and Lifetime Research Award from the Chemical Research Society of India. Dr. K. Nagarajan spearheads the scientific efforts at Hikal.

Dr. Goverdhan Mehta

He holds a D.Sc. from the University of Marseilles, France; Ph.D. In Organic Chemistry from Pune University - National Chemical Laboratory; and a Ph.D. from Michigan State University and Ohio State University USA. He is a National Research Professor, Eli Lilly Chair, School of Chemistry at the University of Hyderabad and a Bhatnagar Fellow. He is a Ph.D. from the University of Tokyo, is Professor Emeritus of the Nagoya City University and an adjunct Professor of the Graduate School of Environmental and Human Sciences, Meijo University. He is the Honorary President of the Japanese Society for Process Chemistry. He is B.Sc. (Hons) in Chemistry from Loyola College, Madras, and Ph.D. from the University of Madras. He is a postdoctoral Fellow from Wayne State University, California Institute of Technology, Pasadena and Zurich University, Switzerland. He has held various positions as Head, Medicinal Chemistry, Ciba Research Center; Director, R&D of Searle India, among others. He is a Ph.D. in Chemistry from the Johann Wolfgang Goethe University, Frankfurt am Main, where he is the Honorary Professor of Chemistry. Prof. Kleemann is the Chairman of the Board of Directors of Protagen AG and a member of the Board of Directors of several non-listed and listed biotech and fine chemical companies

Dr. Takayuki Shioiri

Prof. K Nagarajan

Co-author of the standard reference book, 'Pharmaceutical Substances'.

Prof. Axel Kleemann

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State-of-Art Facilities

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Pharmaceutical Division Site Overview

Location : Jigani, Bangalore
Products : APIs & Bulk Drug Intermediates Accreditations : USFDA, KFDA, TGA, PMDA (Japan) & ISO 9001, ISO 14001, OHSAS 18001 Offers scale up capabilities and can provide validation and launch quantities under cGMP conditions Audited frequently by Innovator companies from US, European and Japan

Location : Panoli, Gujarat

Products : Bulk Drug Intermediates Accreditations : US FDA certified, PMDA (Japan) ISO 9001, ISO 14001, OHSAS 18001 Manufactures cGMP Intermediates & Regulatory starting Materials. Audited & Approved for supply by Innovator Companies
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Crop Protection Site Overview

Location : Taloja, Maharashtra
Products : Crop Protection AIs & Intermediates Accreditations : ISO 9001, ISO 14001, OHSAS 18001 & ISO 17025 (GLP) Manufactures Fungicides, Insecticides and Intermediates. The site manufactures on patent active ingredients for innovator companies

Location : Mahad, Maharashtra

Products : Crop Protection AIs & Intermediates Accreditations : ISO 9001, ISO 14001, OHSAS 18001 Manufactures Intermediates Audited frequently by several Fine Chemical and Multinational Companies

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Research & Development

R & D Facilities at Pune & Bangalore
Supports clients with early life cycle of products : Route Scouting Small scale synthesis Process Research Kilo quantities Scale up facilities New product development

R&D Facility offers : Troubleshooting support Synthesis of Intermediates and APIs Process Development

Optimization / Scale up in lab/kilo lab and document support for commercialization

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Pharmaceuticals

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Pharmaceutical Business Profile

Rs. Million

Custom Manufacturing projects in Intermediates and APIs for Multinational Companies Manufacture of Animal health products Worlds largest supplier of Gabapentin, API for Neuropathic use Focus in the CNS area Growth driven by
Addition of New Customers in Existing & Newer geographies New Products in various stages of the pipeline

Pharmaceuticals - Revenue
5Y CAGR : 19%

Pharmaceuticals - PBIT
5Y CAGR : 15%

Strong Customer Relationships

Large Global Generic & Innovator Cos.
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Existing & Future Growth Drivers

Construction of newest multipurpose API plant capable of manufacturing 4 APIs simultaneously is underway at US FDA facility in Bangalore. Phase I Expected completion by end 2013 New Pilot Plant for early stage projects under construction at Bangalore Will add to number of products in the pipeline Panoli plant approved by US FDA - Second US FDA Manufacturing Site Bangalore USFDA facility passed third Audit and received zero 483s (zero regulatory deviances) Audited and certified by Supply Chain Consortium Rx360 Leading Multinational Innovator, Biotech and Chemical Companies are members of Rx360 The certification showcases regulatory and quality compliance
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R & D Expertise

Contract Research & Development

Process research of APIs and intermediates involving multi-step complex synthesis Strong Track Record of developing non-infringing commercially viable processes

Facilities ensuring seamless scale up from Lab to Commercialization

Dedicated Technology Transfer Group of chemists and process engineers Dedicated R&D small & pilot scale production assets to ensure high throughput of molecules
Activities Drug Discovery Support Analytical method Development Process Research Process Development Process Improvement Kilogram Laboratories Pilot Plants cGMP compliance Hikal Limited
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Acoris Research Pune

* * * *

Bangalore R&D Center

* * * * * *

Bangalore Manufacturing

Panoli

Taloja

* * * * * * * * * * * *

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R & D Expertise

Acoris (formerly a 100% subsidiary) Division of Hikal

Provides early stage support services to the Life Science industry Customers : Multinational Companies from US, Western Europe and Japan FY 2011-2012 : Completed multiple laboratory scale and major pilot plant development projects

Strong Project Pipeline

Projects range from Phase I to Phase III (Intermediates & Advanced Intermediates) The success of these projects depends on Regulatory Approvals A majority of these projects are from Repeat Customers

Research Molecules in various stages of Phase II & III - Building a pipeline for future commercial supplies
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Crop Protection

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Crop Protection Business Profile

Rs. Million

Custom Synthesis and Contract manufacturing of Agrochemicals, Intermediates and Specialty Chemicals Worlds largest supplier of Thiabendazole (TBZ) Other products include Growth driven by
Addition of multiple products to existing and new customers Long term Supply contracts in place Volume & Margin Expansion

Crop Protection - Revenue

5Y CAGR: 12.8%

Crop Protection - PBIT

5Y CAGR: 10.7%

Strong Customer Relationships

Global Leading Agrochemical Companies

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Existing & Future Growth Drivers

Made inroads in Japanese Market

Added new customers for commercial manufacturing starting 2013, the lab trials for these molecules have been completed Multiple Late Stage Research products for Japanese Companies should be commercialized in the near future.

Growth Strategy
Increased capacity utilization at Mahad & Taloja commercial plants Excellent track record of safety, health & environment with customers Technology absorption and innovative process development Animal Health & Specialty Chemicals Business seen as a potential growth driver

Current Portfolio of contract manufacturing products with plans to launch several new products in next few years
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Moving to the Next Level

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Ready for Growth

Asset Creation Major Investment Completed Consolidated Gross Fixed Assets increased from Rs. 508 Cr in FY08 to Rs. 1,042 Cr in FY13

R&D Acquired R&D Centre, Bangalore in 2001 and Set up Acoris Research in 200809 R&D Strength absorption and creation of new technologies Green chemistry initiatives

Customer Relationships Strong Customer Relationships with the Leading Global Companies Multiple products from Existing Customers High Quantum of Repeat business

Geared to increase both Revenues & Profits

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Financials

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Operational Highlights
Rs. Million

Standalone Revenues
5Y CAGR: 16.2%

Standalone EBITDA
5Y CAGR: 18.2%

* Interest expenses includes exchange loss on PC FC

Consistent EBITDA Margins in range of 26 - 29 %

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Consolidated Profit & Loss

Rs. Million Net Sales FY13 6,604 FY2012 7,078 FY2011 5,023 FY2010 5,390

Expenditure

4,763

5,245

3,830

3,677

EBITDA Margin

1,841 27.9%

1,833 25.9%

1,193 23.8%

1,713 31.8%

Other Income Depreciation Finance Costs Exchange Loss Tax

63 491 598 484 78

14 453 664 219 51

33 410 437 32 -23

2 358 380 547 -70

Net Profit Margin

253 3.8%

460 6.5%

370 7.4%

500 9.3%

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Consolidated Balance Sheet

Rs. Million Shareholders Fund Share capital Reserves & Surplus 164 4,338 164 4,142 31-Mar-13 31-Mar-12 Rs. Million Non-current assets Fixed assets Long-term loans & advances Non-current investments Deffered Tax Assets Non-current liabilities Long Term Borrowings Deferred Tax Liabilities Long Term Provisions Current liabilities Short Term Borrowings Trade Payables Other Current Liabilities Total Liabilities 2,603 1,129 1,297 11,910 2,055 1,145 1,277 11,318 2,196 86 97 2,457 8 70 Current assets Inventories Trade receivables Cash and bank balances Short-term loans and advances Other current assets Total Assets 2,570 846 154 514 7 11,910 1,928 1,020 69 562 4 11,318 7,090 698 31 0 7,149 555 31 31-Mar-13 31-Mar-12

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Foreign Exchange Update

Revenue contribution from Exports
Direct Exports constitutes ~80% of the Sales and Domestic Sales includes deemed exports In past, majority was in US Dollars Forex Losses on the back of long term Options Contract in the past Cumulatively booked Forex Losses of Rs 130 Cr from FY2008 to FY2013
Rs. Million

Now, Diversified Currency Exposure to Euro, Rupees and US Dollars Forex Risk Management Policy in place
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Annual Dividend Payout

Dividend Payout 33% 22% 0% 22% 22% 18% 16%

Rs . Per Share

Dividend payout track record

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Certifications

3rd USFDA audit was completed successfully at Bangalore Audited successfully by the Korean FDA Audited successfully by Therapeutic Goods Administration, Australia Certified 18001 for Mahad, Taloja, Panoli and Bangalore

Certified 9001 and 14001 for Mahad, Taloja, Panoli and Bangalore, 17025- GLP for Bangalore Responsible Care certification First Indian Life Sciences company

First Indian Company to receive Rx-360 Certification

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For further information, please contact:

Company : Hikal Limited Mr. Sham V. Wahalekar sham_wahalekar@hikal.com www.hikal.com Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. Mr. Gaurang Vasani / Ms. Payal Dave vgaurang@sgapl.net / dpayal@sgapl.net www.sgapl.net

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 Hikal Limited

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