Shasun Pharmaceuticals Limited

Analyst meeting Presentation 11th February 13

Disclaimer
This presentation may include certain forward looking statements , based on current expectations, within the meaning of applicable laws and regulations. Actual results may differ and the company does not guarantee realization of these statements. The Company also disclaims any obligation to revise any forward-looking statements. The readers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. No part of this presentation may be reproduced, quoted or circulated without prior written approval from Shasun Pharmaceuticals Limited.

SHASUN

Business Outlook

Shasun Growth Strategy

Shasun is working towards growth strategy Rs 2000 Crs by FY 15 Growth Drivers
New Markets New products
Biotech/Nanotech growth Exploring biosimilars R&D in cutting edge technologies with collaborative efforts

Formulations

Technology tie-ups
APIs growth Capacity increase for Ibuprofen and derivates Increase in API capacity Focusing on new products development New market growth

Capacity expansion
Formulations growth Capacity expansion and new contracts Own ANDA filings Co Development

Cost optimization
CRAMS growth New customers/ new products acquisition in US, EU and Japan New facility in Vizag

Exploit technology differentiation Nano technology development

Biotech

CRAMS

APIs

Business Verticals

API & Intermediates

FORMULATIONS

CRAMS

BIOTECH & NANOTECH

Oral Solid Dosage (Tablets & Hard Gel Capsules) Matured and New APIs Development capabilities ranges from OSD to Topical Gel; Oral Dry Powder Suspension and Oral Solution

Contract Research facility in India & UK

Biosimilars

Contract Manufacturing facility in India & UK

Radioactive Gold Nanoparticles

API Strategy
Product Ibuprofen and Derivates Gabapentin Nizatidine Cycloserine Tenofovir Sevelamer HCl Sevelamer Carbonate Colesevelam New products Growth drivers Shasun is one of the largest manufacturers of Ibuprofen in the world. Ibuprofen Derivatives growth in Europe and South Asia with improved margins Capacity expansion and process improvement will help the growth Market growth in India, S Asia , EU and Africa Nizatidine is an anti-ulcerant drug and reentry in to Japan market Used for Multi drug resistant TB. Tender based market , one of the 2 suppliers approved by WHO DMF filed in 2012 and product sales in 13-14 Shasun filed DMF in 2009. Growth driver-Patent Expiry Aug 13 Shasun filed DMF in 2009. Growth driver -Patent Expiry Aug 14 Shasun filed DMF in 2009. Growth driver -Patent Expiry Apr 15 5 DMF filled in FY 13 and 11 Products under development to support growth

API Products DMF filings FY 13

S No 1 2 3 Product Pitavastatin calcium Tenofovir Levetiracetam DMF Category US DMF US DMF US DMF CEP US DMF US DMF DMF filed 11th April 2012 24th May 2012 27th September 2012 28th September 2012 26th November 2012 26th December 2012

4 5

Milnacipran HCl Dextromethorphan

API New products pipeline

APIs under dev Product - 1 Product - 2 Product - 3 Product-4 Product - 5 Product - 6 Product - 7 Product - 8 Product - 9 Product - 10 Product-11 Therapeutic Area Anti-viral -WHO Anti-inflammatory Anti-ulcerant Metabolic disorder Anti-emetic Anti-convulsant Anti-ulcerant Lipid lowering agent Metabolic disorder Respiratory Disease Anti-coagulant Product Peak Sales $4 Bn $800 M $3.4 Bn $750 M $500 M $4.3 Bn $610 M $6 Bn $600 M $1 Bn $4 Bn US Patent Expiry Jul '17 Open Open Sep '18 Jul '18, Dec '16 Jun '20 Dec '16 Nov '25, Jan '20 Feb '22

Product pipeline to support growth

Formulation - Strategy

Technology Value Creation India : Generic InHouse & Out Licensing

NDA 505 (b) (2) Complex Formulations

Products in Development Team India

CDAMS

In Progress

CDAMS Formulations product pipeline

Strong growth product pipeline

Formulation move up in value chain

Own ANDA development -Products under development launch in phased manner FY 15 to FY 17 Long term contracts with large generic players

Big Pharma partnership for contract manufacturing Profit sharing agreements to provide benefit by FY 15 Domestic formulation entry

India - Formulation marketing

Formation of Team India Formulations as per plan with 138 adequately trained and purpose oriented employees. Successful launch of Siren a cause based campaign towards Eradication of Childhood anemia. 3000 Plus doctors 2000 plus retailers and several other caregivers are made to experience the unique strengths, approach and value proposition of Brand Shasun 10 products with 16 SKUs to reach market by March 13.

CRAMS API Pipeline SPL

14 12 10 8 6 4 2 0 Preclinical Phase I Phase II Phase III Launch 5 5 3 8 12

SHASUN-NBI LLC S-NBI-29

Clinical trial study in patient dogs with prostate cancer 12th dog in progress and results consistent with respect to tumour regression. Total of 20 dogs to be done. Biodistribution study in healthy dogs 2 more dogs being done and positive indication of being selectively retained only in tumour cells and leaking out of normal cells Preparatory steps underway for IND submission for Phase-1 trials: Additional preclinical studies (toxicity) being undertaken Compiling Investigators Brochure & setting up Advisory Board Pre-IND meeting being setup with US FDA in June 13 IND submission targeted by Sep13

Shasun India Review of YTD Dec 12

Shasun India Business Update

Formulation 1. 2. 3. Profit sharing agreement signed with a US based customer for 4 products and first launch expected in 2015 WHO-Geneva has approved the facility NCE Molecule development contract for 3 major customers

Pondy Ibu Plant 1. Ibu Derivatives capacity expanded 2. Long term supply contracts for supply of Ibuprofen 3. Backward integration of raw material project Cuddalore 1. 2. 3. Reduction realisation in one of the API Process improvement projects to improve the margin Facility inspected by WHO Geneva and approval awaited

Shasun India Business Update

Bio Tech

1.

Gold Nano particle project IND application with US FDA by Sep13

2 Tapping into the opportunity of Tender businesses 3. Dossiers being submitted for export marekts CRAMS API 1. 2. Japan focus area for growth and secured two new projects NCE Molecule development contract for 2 customers

Major Strategy Projects

New Plant for API in Cuddalore plant Creation of new production block for New Products in Cuddalore Green field project in Vizag Phase I Formulation capacity expansion Phase II Existing products capacity expansion in line with sales Backward Integration of key raw material

Shasun Pharma Solutions Limited, UK

Business Review

19

12-13 SPSL Update

People Stable UK Management Team has an average of 20 years of service at the Dudley site Expanded Business Development Team working well and delivering increased number of RFPs Staff transfer program continues with Shasun, India to share best practice and enhance level of integration

Profitability YTD EBITDA of 6.0M vs 5.2M last year EBITDA/Sales margin of 23% vs 17% last year

12-13 SPSL Update

Sales Activities Client visits to site up 50% on 11-12 Request for Proposal (RFP) count up 35% on 11-12 Proposal performance up 11% on 11-12

Compliance (Quality, Safety, Environmental) Successful completion of several major HSE regulatory inspections Record waste treatment & bioplant performance Continued strong performance on Process Right First Time Over 80 customer visits & 10 successful customer Quality Audits during 2012-13

Investment Update 12-13

Over the last 12 months we have invested around 2.5M at Dudley Investment in general infrastructure upgrades of around 1M New capability investment of around 1.5M New cGMP Scale Up Lab Hydrogenation Suite Successful validation of new 20L high pressure, high containment API suite Established facility for production of Controlled Substances Enhanced capabilities for Bio treatment plant

R&D Capabilities
Part of Shasun Global R&D Organisation Strong IP portfolio of more than 40 patents Over 40 Scientists based in UK (60% PhDs) World Class Hazard Evaluation Lab UK Process Industry Innovation Award Winner in 2011 and 2012 Strong reputation for high levels of technical and service excellence UK Development Resources (Chemistry, Scale Up Labs and Pilot Plant) currently running at capacity

Strategy for growth

PROTECT and extract maximum value from established businesses

NURTURE new growth opportunities

SECURE and deliver new business

CRAMS SPSL UK Pipeline

25

10 7

10

Phase I

Phase II

Phase III

Launch

12 new products introduced in last 12 months

Key Growth Drivers Existing Product Prospects SPSL UK

Phase & Application
API for European Biotech Phase III; Alzheimers

Status

Annual Potential

Phase III initiated; Validation Proposal Agreed; Supply Agreement discussions in progress Over 30% growth achieved in 2012-13; progressing demand for 2013-14

15-35M

Technology Product for European Big Pharma

Launched; anti coagulant

1.5-2.5M

Registered Intermediate for European Big Pharma API for European Biotech Technology Intermediate for Generic Product

Phase III; Respiratory Disease Phase II for Psoriasis,

Good Phase III data; launch in 2013-14; SPSL to be only validated source Piloting, scale up and validation proposals in progress; client looking for a supply agreement Working with client to supply key intermediate using HKR technology; 2013 order finalised, looking at back integration

1-2M

5-8M

Generic Launch for Ventricular failure

4-6M plus back integration

Key New Business Opportunities SPSL UK

Phase & Application
Technology Intermediate for US Biotech API fro European Big Pharma API for US Biotech Phase III for Psoriasis

Status
Technology application to target key chiral intermediate for Phase III API; MSA signed and POC work in progress in lab Bid submitted to re-enter supply chain as 2nd source; Bid will be accepted and supply agreement granted subject to positive Phase III interim results in Q1 2013 Client interested in SPSL option due to past experience with this hazardous process Evaluating Dudley options for supply of key fine chemical intermediate based on scale and hazard

Annual Potential
5-10M

Launched; HIV

3M

Phase III; Oncology

3-5M

Hazardous Intermediate European Pharma Fine Chemical Intermediate

Launched; Imaging Agent

5-7M

Fine chemical

2.5M

Database of Open Proposals Value at 20M

Shasun

Financial Review

28

Shasun Sales
Sales Product (Rs laks) API Ibuprofen & derivatives Other APIs CRAMS India CRAMS - API CRAMS - Formulation Bio Tech SPL India - TOTAL SPSL UK -CRAMS TOTAL YTD Dec 12 YTD Dec 11 Growth % of Business 51.4% 38,956 1% 39,319 18,475 24% 30.0% 22,982 20,481 -20% 21.3% 16,338 13,595 3,048 10,547 423 53,336 23,209 76,545
29

10,792 26% 5,211 -42% 5,581 89% 122 246% 49,871 7% 22,750 72,621 2% 5%

17.8% 4.0% 13.8% 0.6% 69.7% 30.3% 100.0%

SPL India Forex position YTD Dec 12

Q1 FY13 Q2 FY13 Q3 FY13 YTD Dec-12 Cash Loss Forward Contract 980 1,025 180 2,185 MTM and Reinstaement (12) (2,045) (350) (2,407) Total Loss / (Profit) 968 (1,020) (170) (222)
Forex details Rs laks

All pending contracts closed

SPL India Financial YTD Dec 12

SPL Standalone (Rs. Lakh) Sales & operating revenue Rawmaterial cost Operations cost Total operating cost EBITDA EBITDA % PBT - after forex loss Profit on sale of Asset Tax Profit After Tax Q3 FY13 19,915 12,634 6,066 18,700 1,216 6.10% (69) 181 (177) 289 Q3 FY12 21,284 12,438 5,389 17,827 3,457 16.24% 1,402 134 1,268 9M FY13 57,761 35,416 17,040 52,455 5,306 9.19% 1,600 181 180 1,600 (1875) 1,642 9M FY12 53,323 33,548 14,073 47,621 5,702 10.69% (233)

SPSL UK Financial YTD Dec 12

SPSL UK Standalone (GBP 000) Sales & operating revenue Rawmaterial cost Operations cost Total operating cost EBITDA EBITDA % PBT - after forex loss Tax Profit After Tax Q3 FY13 8,343 1,507 5,121 6,628 1,715 20.56% 769 769 Q3 FY12 12,023 4,057 5,437 9,495 2,528 21.03% 1,593 1,593 9M FY13 26,731 5,465 15,138 20,603 6,128 22.93% 3,180 3,180 9M FY12 30,090 9,198 15,680 24,879 5,211 17.32% 2,556 (667) 3,223

Consolidated Financial YTD Dec 12

Consolidated (Rs. Lakh) Sales & operating revenue Rawmaterial cost Operations cost Total operating cost EBITDA EBITDA % PBT - after forex loss Profit on sale of Asset Tax Profit After Tax Q3 FY13 27,362 14,049 10,829 24,877 2,484 9.08% 463 181 (177) 821 Q3 FY12 31,108 15,682 9,824 25,506 5,602 18.01% 2,591 131 2,460 9M FY13 81,556 39,842 31,498 71,340 10,216 12.53% 3,978 181 180 3,979 9M FY12 76,699 40,469 26,374 66,843 9,856 12.85% 1,787 (2,373) 4,160

Consolidated Funding Dec 12

Funding as on 31.12.2012 Rs laks SPL India SPSL UK Term loan 12,361 5,362 Working capital 26,128 4,781 Cash in hand (847) (1,931) Total Borrowings 37,643 8,212

Total 17,723 30,910 (2,778) 45,855

Thank You