Ipca Laboratories Ltd.

Corporate Presentation

Aug 2016
 Company Overview

Incorporation : 1949

Present Management : Since 1975

Total income F. Y. 2015-16 : ` 2838.92 Crs / US$ 433 Mn

Exports F. Y. 2015-16 : ` 1428.72 Crs / US$ 288 Mn

Number of Employees : 13,141 including 6018 in

marketing and distribution

Business Model : Fully integrated pharmaceutical

company producing Branded
and Generics Formulations,
APIs and Intermediates
 Five Years Highlights

2011-12 2012-13 2013-14 2014-15 2015-16

Domestic Income ( ` Crs ) 941.01 1,081.00 1,190.23 1,367.54 1,410.20
Domestic Income (US $ Mn) 143.67 165.04 181.71 208.78 215.30
Export Income ( ` Crs ) 1,401.97 1,716.08 2,066.02 1,752.86 1,428.72
Export Income (US $ Mn) 214.04 262.00 315.42 267.61 218.13
Total Income ( ` Crs ) 2,342.98 2,797.08 3,256.25 3,120.40 2,838.92
Total Income (US $ Mn) 357.71 427.04 497.14 476.40 433.42
Net Profit After Tax ( ` Crs ) 280.17 331.39 477.37 256.11 91.45
Net Profit After Tax (US $ Mn) 42.77 50.59 72.88 39.10 13.96
Manufacturing Facilities
Formulations
 Manufacturing Facilities
Formulations

Location Dosage Form Approvals / Inspections

UK-MHRA, TGA-Australia,
Athal, Silvassa Tablets & Capsules MCC-South Africa,
HPB-Canada, WHO-Geneva

Tablets, Liquids, Injectables

Ratlam, Madhya Pradesh MCC-South Africa
& Ointments

Kandla, Gujarat Betalactum Tablets,

UK-MHRA, MCC-South Africa
Capsules & Dry Syrups

UK-MHRA,
Silvassa Tablets & Capsules TGA-Australia, HPB-Canada,
US-FDA*
* Under Import Alert
 Manufacturing Facilities
Formulations

Location Dosage Form Approvals / Inspections

Tablets &
Dehradun, Uttaranchal WHO-GMP
Cephalosporin Injectables

Indore (SEZ), Madhya UK-MHRA

Tablets & Capsules
Pradesh US-FDA*

Sikkim Tablets & Capsules GMP

Pithampur, Dhar , Madhya WHO-GMP

High Potency Oral Solid Dosage
Pradesh INVIMA Colombia

Tarapur, Palghar Tablets

* Under Import Alert

Manufacturing Facilities
Active Pharmaceutical Ingredients (APIs)
 Manufacturing Facilities
APIs

Location Approvals / Inspections

TGA-Australia, EDQM, Danish Regulatory Authority,
Ratlam, Madhya Pradesh PMDA-Japan, WHO-Geneva,
US-FDA*

Indore, Madhya Pradesh WHO-GMP

Ankleshwar, Gujarat PMDA Japan

Nandesari, Gujarat WHO-GMP

Aurangabad, Maharashtra WHO-GMP

Mahad, Maharashtra GMP

Ranu (Tehsil Padra), Gujarat

* Under Import Alert

Revenue Break-up
 Revenue Break-up
2015 - 16

77%
76%
60%
Total Formulations 51%
APIs Total Exports
Revenue
Revenue 40% Domestic
24%
23% 49%

84%
65%
71% 90%

Exports Formulations Domestic Formulations

APIs APIs
29%
35% 16%
10%
 Revenue Break-up

2015-16 2014-15

` Crs Domestic Exports Total Domestic Exports Total Growth

Branded
Formulations 1206.70 236.36 1443.06 1128.73 343.81 1472.54 -2.0%
Generic
Formulations - 685.69 685.69 - 895.40 895.40 -23.4%

Total Formulations 1206.70 922.05 2128.75 1128.73 1239.21 2367.94 -10.1%

API / Intermediates 140.66 506.67 647.33 178.32 513.65 691.97 -6.5%

Others 62.84 - 62.84 60.49 - 60.49

Total Income 1410.20 1428.72 2838.92 1367.54 1752.86 3120.40 -9.0%

Growth 3.1% -18.5% -9.0%
Financials
 Financials

F.Y. 2015 - 16 F.Y. 2014 - 15

%
` Crs US$ Mn ` Crs US$ Mn Growth

Total Income 2838.92 433 3120.40 476 -9%

EBIDT 324.08 49 523.71 80 -38%

EBIDT % 11.51% 16.96%

PBT # 108.52 17 357.73 55 -70%

PBT % 3.85% 11.59%

PAT # 91.45 14 256.11 39 -64%

PAT % 3.25% 8.29%

# After forex Loss of ` 39.22 Crs as against forex gain of Rs. ` 4.25 Crs for previous year.
 Financials

Profitability to
Net Income FY 2015-16 FY 2014-15 FY 2013-14
PBIDT 11.51% 16.96% 24.89%

PBT 3.85% 11.59% 19.45%

PAT 3.25% 8.29% 14.76%

 Financials

Business Characteristics FY 2015-16 FY 2014-15 FY 2013-14

Return on Capital Employed % (PBIT /
Capital Employed) 4.37% 12.71% 25.28%
Return on Net Worth % (PAT / Net
Worth) 3.97% 11.47% 24.09%
Fixed Asset Turnover Ratio (Total
Income / Net Fixed Assets) 1.35 1.54 2.21

Capital Employed Turnover Ratio (Total

Income / Capital Employed) 0.90 1.03 1.26
Asset Coverage Ratio (to term loan) (Net
Fixed Assets / Total Long Term
Borrowings) 3.06 3.32 3.22
Long Term Debt Equity Ratio (Total Long
Term Borrowings / Net Worth) 0.30 0.27 0.23
Debtors Turnover Ratio (Days) (Trade
Receivables / Turnover) x 365 48 42 51
Creditors Turnover Ratio (Days) (Trade
Payables / Purchases) x 365 108 66 100

Inventory Turnover Ratio (Days)

(Inventory / Turnover) x 365 109 109 96
 Financials

Growth FY 2015-16 FY 2014-15 FY 2013-14

Net Total Income -9.00% -4.20% 16.40%
Domestic Sales 3.10% 15.30% 10.90%
Export Sales -18.50% -15.20% 20.40%
PBIDT -38.10% -35.00% 29.60%
PBT -69.70% -43.10% 36.40%
Net Profit -64.30% -46.30% 44.10%
 Financials

Q1 2016 - 17 Q1 2015 - 16
%
` Crs US$ Mn ` Crs US$ Mn Growth

Total Income 847.03 129 761.79 116 11%

EBIDT 128.51 20 80.13 12 60%

EBIDT % 15.26% 10.60%

PBT # 76.57 12 29.34 4 161%

PBT % 9.09% 3.88%

PAT # 47.57 7 20.92 3 127%

PAT % 5.65% 2.77%

# After forex Loss of ` 8.13 Crs as against Rs. ` 10.75 Crs for previous quarter.
 Financials
Contribution of Therapeutic Groups

2014 15 2015 16
Therapeutic Segment
Exports Domestic Exports Domestic
21% 36% Non Steroidal Anti-Inflammatory Drugs (NSAID) 25% 39%

30% 23% Cardiovasculars & Anti-Diabetics 31% 23%

24% 14% Anti-Malarials 17% 12%

11% 7% Anti-Bacterials 12% 6%

2% 5% Gastro-Intestinal (GI) Products 3% 5%

3% 3% Neuro Psychiatry 5% 3%
2% 4% Cough Preparations 2% 4%

- 4% Dermatology - 4%

- 2% Urology - 2%

- 1% Neutraceuticals - 1%

7% 1% Others 5% 1%

100% 100% Total 100% 100%

Branded Formulations
Domestic
 Branded Formulations
Domestic

All India Rank ORG-IMS : 22nd (MAT June16).

25 Depots & 2 C&F agents.

13 Therapy Focused Marketing Divisions.

Field Strength (PSR/ BA) 4216.

Over 2000 Wholesalers.

3 brands among top 300 brands (HCQS, Zerodol-P & Zerodol-SP).

Market leaders in Anti-malarials & Rheumatoid Arthritis.

 Branded Formulations
Domestic

` 1206.70 Crs
US$ 1854Mn
CAGR = 11.20%
` 1128.73 Crs
US$ 172 Mn
` 969.42 Crs
US$ 148 Mn

` 878.10 Crs
US$ 134 Mn

Sales
2012 - 13 2013 - 14 2014 - 15 2015 - 16
 Branded Formulations
Domestic

Future Growth Drivers

The company introduced 19 new Brands in the India market during 2015-16.

Clinical research as a tool to launch innovative combination formulations / NDDS.

Strong Brand building with focused promotion.

In licensing/ out licensing to build business in the promoted therapy.

Portfolio optimization, strategies to identify need gaps to build, enter, maintain

and exit approach.
International Business
 International Business

Exports to over 120 countries.

Recognized Star Trading House.

Among top 10 pharmaceutical exporters from India.

54% sales from exports.

Field-force to promote brands in more than 30 countries of CIS, South East Asia,
Middle East, Latin America and Africa.
 International Business

Marketing offices in Russia, Ukraine, Vietnam, Philippines, Kenya, Columbia, Sri

Lanka, Malaysia and Nigeria (subsidiary company).

Formulation dossiers for branded formulations registered in 62 countries.

 International Business

` 2066.02 Crs
US$ 315 Mn
CAGR = -5.90%
` 1752.86 Crs
US$ 268 Mn
` 1716.08 Crs
US$ 262 Mn

` 1428.72 Crs
US$ 218 Mn

Sales
2012 - 13 2013 - 14 2014 - 15 2015 - 16
 International Business

Continent-wise Exports 2015 16 (` Crs)

Bulk Drugs / %
Continent Formulations Intermediates Total Contribution
Europe 373.50 175.10 548.60 38%
Africa 198.82 20.10 218.92 15%
Americas 113.30 151.96 265.26 19%
Asia 55.87 148.03 203.90 14%
CIS 92.99 6.63 99.62 7%
Australasia 87.57 4.85 92.42 6%
Total 922.05 506.67 1428.72 100%
International
Formulations
 International
Formulations

CAGR = -8.20% ` 1465.79 Crs

US$ 224 Mn

` 1239.21 Crs
` 1194.18 Crs US$ 189 Mn
US$ 182 Mn
` 922.05 Crs
US$ 141 Mn

Sales
2012 - 13 2013 - 14 2014 - 15 2015 - 16
International
Branded Formulations
 International
Branded Formulations

` 346.06 Crs
CAGR = -5.60% ` 343.81 Crs
US$ 53 Mn
US$ 52 Mn

` 281.17 Crs
US$ 43 Mn

` 236.36 Crs
US$ 36 Mn

Sales
2012 - 13 2013 - 14 2014 15 2015 - 16
 International
Branded Formulations

Future Growth Drivers

Thrust on brand building in Pain, CVS, CNS, Anti-infective and Anti-malarial segments.

Geographical expansion in covered countries through additional field force.

Expansion in business lines - Institutions and Distributors.

Introduction of new products - Existing developed formulations are identified for

registration and launch across all continents.
International
Generics
 International
Generics

CAGR = -9.10%
Products
` 1119.73 Crs Products
Country Under
Registered
US$ 171 Mn Registration

` 913.01 Crs
US$ 139 Mn ` 895.40 Crs United Kingdom
61 1
US$ 137 Mn / Europe

` 685.69 Crs Australia /

58 9
US$ 105 Mn New Zealand

South Africa 42 20

Sales United States /

Canada
31 27

2012 - 13 2013 - 14 2014 - 15 2015- 16

 International
Generics

Future Growth Drivers

Dossiers developed by company approved in UK are being taken for registration in
other EU countries.

Most formulations registered to be backed by own API.

Sale of generic dossiers with or without supply agreements.

Contract manufacturing arrangements.

 International
Generics

Future Growth Drivers North America

Strategic tie up with 3 marketing partners for sale/distribution of Generic formulations.

42 ANDAs filed of which 18 ANDAs are approved.

8 to 10 ANDAs targeted for filing for every year.

505 (b) (2) projects/ Sustained Release Formulations.

Exploring contract development and manufacturing opportunities.

International
APIs
 International
APIs

CAGR = -0.98% ` 600.23 Crs

US$ 92 Mn

` 521.90 Crs
` 513.65 Crs
US$ 80 Mn
US$ 78Mn
` 506.67 Crs
US$ 77 Mn

Sales
2012 - 13 2013 - 14 2014 - 15 2015 - 16
 International
APIs Drug Master Files
US- UK - Canada- Japan - EDQM -
Sr. No. Name of the API FDA MHRA HPFB WHO PMDA Australia Europe
1 Atenolol a a a CEP a
2 Artemether a
3 Artesunate a
4 Artesunate Sterile a
5 Amodiaquine Hcl a
6 Amlodipine Besylate a a
7 Allopurinol a a CEP a
8 Beventalol Hcl a
9 Benzarone a
10 Benzbromarone a
11 Bendroflumethiazide a
12 Bisoprolol Fumarate a a
13 Carvedilol a a a
14 Cetrizine Dihydrochloride a CEP a
15 Chloroquine Phosphate a a
 International
APIs Drug Master Files

US- UK - Canada- Japan - EDQM -

Sr. No. Name of the API FDA MHRA HPFB WHO PMDA Australia Europe
16 Chloroquine Sulphate a
17 Chlorthalidone a a a
18 Citalopram HBR a
19 Dihydroartemesinin a
20 Etodolac a a
21 Famotidine a a
22 Fenofibrate a a
23 Fluconazole a
24 Flumequine a
25 Furosemide a a a CEP a
26 Glimepiride a a a
27 Hydrochlorothiazide a a a CEP a
28 Hydroxyzine Di Hcl a a
29 Hydroxychloroquine Sulphate a a a a
30 Indapamide a a a
 International
APIs Drug Master Files
US- UK - Canada- Japan - EDQM -
Sr. No. Name of the API FDA MHRA HPFB WHO PMDA Australia Europe
31 Losartan Potassium a a CEP a
32 Lumefantrine a
33 Methylphenidate a a
34 Mesalamine/ Mesalazine a a
35 Metformin HCL a a a
36 Metoclopramide HCl a a CEP a
37 Metoclopramide Base a
38 Metoprolol Succinate a a
39 Metoprolol Tartrate a a a a
40 Midodrine Hydrochloride a
41 Nabumetone a a
42 Nifedipine a a
43 Ondansetron Hydrochloride a a a
44 Ondansetron Base a
Pantoprazole Sodium
45 Sesquihydrate a
 International
APIs Drug Master Files
US- UK - Canada- Japan - EDQM -
Sr. No. Name of the API FDA MHRA HPFB WHO PMDA Australia Europe
46 Paroxetine Hcl a
47 Primaquine Phosphate a a
48 Piperaquine Phosphate a
49 Probenecid a
50 Proguanil Hydrochloride a a
51 Propranolol HCl a a a CEP a
52 Pyrantel Pamoate a a a a
53 Pyrimethamine Hcl a a
54 Promethazine Hydrochloride a
55 Quetiapine Fumarate a a
56 Risperidone a
57 Residronate Sodium a
58 Ractopamine Hcl a a
59 Sodium Alendronate a a a
60 Sulfadoxine a
 International
APIs Drug Master Files

US- UK - Canada- Japan - EDQM -

Sr. No. Name of the API FDA MHRA HPFB WHO PMDA Australia Europe
61 Telmisartan a
62 Torsemide a a
63 Tramadol Hydrochloride a a a
64 Trimethoprim a a CEP a
65 Triamterene a a
66 Triclabendazole a
67 Valsartan a a
68 Warfarin Sodium Clathrate a a
69 Warfarin Sodium CEP a
70 Zaltoprofen a
71 Zoledronic Acid a
Total 46 4 20 7 16 12 43

Note : Australia accept CEP issued by EDQM

 International
APIs

Future Growth Drivers

Pursuing MNC tie-ups for supply agreements.

Non-infringing process Patent filed for APIs.

 International
APIs

Future Growth Drivers

Own API manufacturing to back formulations, especially for the Generic

market.

Exploring strategic business relationship with smaller API manufacturers for

increasing product basket.
Research & Development
APIs & Formulations
 Research & Development
APIs & Formulations

R & D Spending

Year ` Crs % to Sales

2011-12 77.96 3.39%

2012-13 100.74 3.68%

2013-14 123.24 3.85%

2014-15 157.19 5.16%

2015-16 137.67 4.97%

 Research & Development
APIs & Formulations

Current scientist manpower of over 800.

Research focus on developing APIs with non-infringing process and

development of finished dosage forms.

Development of NDDS for domestic and international market.

228 patent applications filed.

 Research & Development
APIs & Formulations

Future Strategy
Bio-tech / fermentation research facility established and working under contract
research on two products.

Undertaking contract research activities for APIs & Formulations for international
clients.
 Thank you

No part of this corporate presentation may be re-produced, quoted or circulated without prior approval of Ipca
Laboratories Limited.
This presentation may include forward looking statements based on our current business expectations. Our actual
results may differ from what is projected in this corporate presentation. The viewers of this presentation may use their
own judgment and calculation before making any decision on any matter based on the information given herein.
The company also disclaims any obligation to revise any of the information given in this presentation.