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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.
2 Long-term Strategy
6 Corporate Governance
Product Portfolio Portfolio of more than 2,000 products across the world
Teva 9.9
Mylan 9.6
Novartis 9.0
Allergan 4.2
Pfizer 3.5
Fresenius 2.5
Lupin 2.5
Sanofi 2.1
Aurobindo 1.9
Cipla 1.7
Revenue
sales split
Break-up
R&D Investment: 7.6% of Sales Generics FY17 API & Others
FY17 26% 5%
Globalized supply chain
54% owned by promoter group
Strong balance sheet, low debt US
International
Strong product pipeline Formulation
74%
45%
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
Acquired Ocular Technologies Gives access to global rights for Seciera for treating
Dry Eye Disease. Announced positive results from confirmatory Phase-3 trials in Jan17.
NDA filing expected by Q3 FY18. Evaluate other markets for filling Seciera.
Acquired InSite Vision - Focuses on developing new specialty ophthalmic products, has
three late stage programs.
Entered into a joint venture with Intrexon Corporation for developing gene-based
therapies for ocular diseases
India Branded
Formulations
API & Others
26%
5%
FY17 Sales
Rs 302 billion
US Formulations
45%
# Includes Western Europe, Canada, Japan , Australia, New Zealand and other markets.
Adjusted
32.5 26.0
Net Sales EBITDA Net Profit
80.1
CAGR CAGR 7.8 CAGR
21.4 6.7
6.9 29% 1.9 29% 1.7 28%
FY02 FY07 FY12 FY17 FY02 FY07 FY12 FY17 FY02 FY07 FY12 FY17
19.4
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17
# Gross margin= (Net Sales- Material Cost)/ Net Sales * 100
ROCE & ROE exclude one-time exceptional charges (Market Cap as on 31st March )
83%
82%
80%
77% 45% 35%
44% 33%
75% 32% 32%
75%
41%
34% 19%
67% 18%
28% 14% 14% 13% 14%
29% 12%
63%
62% 62%
61% 7%
60%
22% 23%
20% 20% 19% 19%
FY11 FY12 FY13 FY14 FY15* FY16* FY11 FY12 FY13 FY14 FY15* FY16* FY11 FY12 FY13 FY14 FY15 FY16
Gross margin= (Net Sales Material Cost) / Net Sales * 100 Sun Pharma Range of Top 10 Indian Pharma Cos. Average
#Top 10 Indian Pharma company include Aurobindo, Cadila Healthcare,
Cipla, DRL, Ranbaxy, Glenmark, Ipca, Lupin, Torrent and Wockhardt.
Year 1983 1993 1994 1997 2010 2011 2012 2013 2014 2015 2016 2017
Market Cap (US$ Bn) as 0.1 0.1 7.8 10.1 12.3 15.6 19.7 34.6 30.0 25.5
of Mar, 31 of respective
years
Positive Phase-3
results for Seciera
Tildrakizumab
$7.5Mn filing in US &
First Research Centre JV for Ocular
invested Acquired GSKs Europe
SPARC, Baroda Therapy Agreement with
in Caraco Merck for in- Acquired Ranbaxy Opiates Business &
InSite Vision
licensing ophthalmic portfolio
Tildrakizumab
Sun Pharma Today
34,000+ Invested Rs. 110 billion Part of NSE Nifty & BSE 42 Manufacturing facilities 74% of sales from
Employees in R&D till date Sensex in India in 6 Continents international markets
ROCE 24% 25% 26% 27% 38% 37% 18% 34% 20% 24% 27% 15% 16%
350
8 Early Acquisitions 4 Acquisitions Recent Acquisitions
300 Taro
Assets of: Dusa
250 URL
Bryan Ranbaxy
Hungary InSite Vision
200 Able Labs
Chattem
150
100
50
-
FY94
FY95
FY96
FY97
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Sales (Rs Bn) EBITDA (Rs Bn)
Sun Pharmaceutical Industries Limited. All Rights Reserved. 15
US Business
45% of Revenues
Wide basket of 584 ANDAs & 41 NDAs filed and 427 ANDAs & 36
Comprehensive Portfolio NDAs approved across multiple therapies
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
597 584
572 103 102
478
449 438
413 427
397
377
344 63
311
250 44
225
30 28
21
14 12 10
CNS
CVS
Oncology
Metabolism
Gastro
Other
Skin
Pain
Allergy
Antibiotic
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Strong Brand Positioning** 30 brands in the countrys top 300 pharmaceutical brands
Extensive Sales Force 9,200+ strong field force covering over 600,000* doctors
1,021
Abbott 6.2%
787
Cipla 4.8%
701
Zydus + Biochem 4.2%
608
Mankind 3.7%
586
Alkem + Cachet + Indchemie 3.5%
547
Lupin 3.3%
499
Glaxo 3.1%
470
Macleods 2.8%
462
Intas 2.8%
447
Emcure+Zuventus 2.7%
438
Pfizer 2.6%
Source: AIOCD AWACS MAT Mar 2017 data converted at average of Rs. 67.07/US$
Gynaecology, 4%
Dermatology, 5%
Market Share
Neuro-Psychiatry
8.6%
37 17%
Pain / Analgesics
30 7%
29
24
20
17 Diabetology, 9%
15
12
Gastroenterology
Anti-Infectives 12%
11%
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Prescription Ranking
Specialist Feb 14 Feb 15 Feb 16 Feb 17
Psychiatrists 1 1 1 1
Neurologists 1 1 1 1
Cardiologists 1 1 1 1
Orthopaedic 1 1 1 1
Gastroenterologists 1 1 1 1
Nephrologists 1 1 1 1
Diabetologists 1 1 1 1
Consulting Physicians 5 1 1 1
Dermatologists 7 1 1 1
Urologists 11 1 1 1
Oncologists 7 2 1 1
Ophthalmologists 1 1 1 2
Chest Physicians 4 1 1 2
25
Creating Lasting Value - Investor Presentation
Best-in-class field force productivity
Sales Per Representative (Rs. Mn)
Field Force Productivity
11.1 11.0
10.1 Sun
Rs 8.3 Mn/ MR
9.2 Pharma
8.3
7.5 Industry
7.4 Rs 5.2 Mn/ MR
Average*
* Approximation based on brokerage reports
FY11 FY12 FY13 FY14 FY15 FY16 FY17 Field force with highest productivity
amongst key players in India
Sales Per Representative (Rs. Mn)
15% of Revenues
9% of Revenues
Local Manufacturing At Canada, Israel and Hungary + Servicing from India facilities
An Attractive Opportunity
5% of Revenues
5.8% 5.6% 6.3% 6.5% 7.2% 8.3% 7.6% ANDA DMF/CEP Patents
23.0 23.1
584 428 1023
19.6
427 751
291
10.4
7.0
4.4
3.3
FY11 FY12 FY13 FY14 FY15 FY16 FY17 Filed Approved Filed Approved Filed Granted
India : 13, US : 4
Canada, Mexico, Hungary , Israel, Bangladesh, South Africa, Malaysia, Romania, Egypt,
Nigeria and Russia : 1 each
Capacities available for a variety of finished dosages
41
Sun Pharmaceutical Industries Limited. All Rights Reserved.
API Manufacturing
42
Sun Pharmaceutical Industries Limited. All Rights Reserved.
Corporate Governance
FY13 YoY FY14 YoY FY15* YoY FY16* YoY FY17* YoY
P&L Summary
Sales 1,12,389 40% 1,60,044 42% 2,72,451 70% 2,78,881 2% 3,02,642 9%
Gross Profit 91,592 44% 1,32,250 44% 2,05,059 55% 2,15,577 5% 2,21,335 3%
EBITDA 49,063 51% 71,141 45% 77,208 9% 75,594 -2% 87,751 16%
Net Profit 29,830 12% 31,415 5% 45,394 44% 45,457 0% 69,644 53%
Net Profit (Adjusted) 35,666 # 34% 56,589 # 59% 47,771 # -16% 52,309 # 9% 69,644 33%
R&D Spend 7,042 58% 10,418 48% 19,550 88% 23,025 18% 23,138 0%
BS Summary Mar'13 YoY Mar'14 YoY Mar'15* YoY Mar'16* YoY Mar'17* YoY
Shareholders Funds 1,49,897 23% 1,85,250 24% 2,56,232 38% 3,29,825 29% 3,66,397 11%
Loan Funds 1,982 -25% 24,890 89,939 261% 83,164 -8% 80,910 -3%
Net Fixed Assets 50,771 55% 58,242 15% 1,10,201 89% 1,24,130 13% 1,49,400 20%
Investments 24,116 9% 27,860 16% 27,163 -3% 14,635 -46% 6,884 -53%
Cash and Bank Balances 40,587 21% 75,902 87% 1,09,980 45% 1,31,817 20% 1,51,410 15%
Inventory 25,778 24% 31,230 21% 56,680 81% 64,225 13% 68,328 6%
Sundry Debtors 24,122 16% 22,004 -9% 51,061 132% 67,760 33% 72,030 6%
Sundry Creditors 10,580 7% 13,283 26% 32,865 147% 35,830 9% 43,954 23%
Exchange Rate :
For Market Capitalisation US$1 = Rs 64.55(As on 29 May 2017)
# Adjusted for Rs 5.83 bn provision related to generic Protonix settlement for the year 2012-13 and
adjusted for Rs 25.17 bn provision related to generic Protonix settlement for the year 2013-14 and
adjusted for Rs 2.4 bn for settlement provision for Texas Medicaid Program litigation for 2014-15 and
adjusted for Rs 6.9 bn of exceptional items related to Ranbaxy integration for 2015-16
175 245
16 381 225 385
11 15 26 330
23 22 611
675
45 548
37 36
% of Sales
14% 13%
15%
16% 17%
16%
24% 25%
24%
34
68 33
31
56
25
40 19
34
15
24
22
FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16
Growth (%)
Sales 40.4 42.4 70.2 2.4 8.5
Gross Profit 43.9 44.4 55.1 5.1 2.7
EBITDA 50.9 45.0 8.5 (2.1) 16.1
Net Profit 12.3 5.3 44.5 0.1 53.2
Net Profit (Adjusted) 34.3 # 58.7 # (15.6) # 9.5 # 33.1
Margins (%)
Gross Margin 81.5 82.6 75.3 77.3 73.1
EBITDA Margin (%) 43.7 44.5 28.3 27.1 29.0
Net Margin 26.5 19.6 16.7 16.3 23.0
Net Margin (Adjusted) 31.7 # 35.4 # 17.5 # 18.8 # 23.0
Return (%)
ROCE 26.7 26.9 14.7 14.8 16.1
ROE 25.7 30.9 18.5 17.6 19.8
Others
Debt / Equity 0.01 0.13 0.35 0.25 0.22
Fully Diluted EPS 14.4 15.2 18.9 18.9 28.9
Fully Diluted EPS (Adjusted) 17.2 # 27.3 # 19.9 # 21.7 # 28.9
R&D Spend % of Net Sales 6.3 6.5 7.2 8.3 7.6
Revenue 5.9 6.2 6.7 8.0 7.3
Capital 0.4 0.3 0.4 0.3 0.3
# Adjusted for Rs 5.83 bn provision related to generic Protonix settlement for the year 2012-13.
Adjusted for Rs 25.17 bn provision related to generic Protonix settlement for the year 2013-14.
. Adjusted for Rs 2.4 bn for settlement provision for Texas Medicaid Program litigation for 2014-15
Adjusted for Rs 6.9 bn of exceptional items related to Ranbaxy integration for 2015-16
US Formulations
All Financials are as per IND-AS # Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets
Global
Consumer Maintain leadership in existing markets through focus on innovative solutions
Enhance presence in high growth markets
Healthcare
Develop more products through expanded R&D team for global markets
R&D Focus on developing complex products across multiple dosage forms
Invest to further build on specialty pipeline
Investing for Future Invest in R&D and in building the specialty business
Product Portfolio Portfolio of more than 2,000 products across the world
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
2016 Sun Pharmaceutical Industries Limited., All Rights Reserved.
SUN Pharma, The Sun Pharmaceutical Industries Logo are trademarks of Sun Pharmaceutical Industries Limited.
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