Investor Presentation | November 2017

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 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.
The Company does not undertake any obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.

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A New Horizon – Pure Play Animal Healthcare
Evolution to a robust SeQuent
Pre-2013
Low margin
business
• Formed by amalgamation of
businesses
• API led strategy
• Low value APIs &
specialty chemicals
• Unregulated market
business
^The Board of Directors meeting held on February 3, 2017 approved in principle demerger of Human API Biz to a separate entity to be listed in BSE / NSE
2013-16 2016-17 Today & Beyond
Designed for growth
Re-strategized from Sharpened Focus
Built for Value
‘Growth’ to ‘Value’
• Creating disruptive value
• Established Alivira- Global • De-merging Human API
integrated animal health business into a new listed • India’s first global integrated
business entity- Solara Active Pharma animal health player with a
Sciences $120m+ annual rev. run rate
• Refocused human pharma
biz. - mature APIs & • Deepened know-how &
regulated markets • Niche Human API business
front end footprint
with strong margins
• Divested- non-core specialty • Only US FDA approved API
chemical business facility in India
• Enhanced focus - R&D
• Strengthened balance sheet • Solara to be amongst the • Organic & inorganic
(Promoter infusion & QIP) largest standalone human expansion
API companies in the country
• Investment & ramp up in • Integration & cross
state of the art futuristic API • Will posses the commodity leveraging
facilities API manufacturing
capabilities of Strides Shasun • Aggressive R&D in API &
and technical knowhow of Formulations
Sequent.
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Differential market attributes, Alivira’s distinctive approach
Indian Pharma
Approach
• Manufacturing driven
strategy taken global
Industry • India based management
Dynamics
• Strong market
intelligence available -
IMS database and trends
• A big advantage to begin,
however leads to hyper
strategy with me too
products
Market
Knowhow
Unique Animal
Health/Veterinary
characteristics
• Limited scale in-market
local business
• Customer focused business
with emphasis on
relationships
• No secondary market
database and business
built on local knowledge
• Complex & distinct
regional needs
• Vet market : exemplified by
regulatory barriers & FMCG
characteristics
Alivira’s Approach
• Applying cutting-edge
resources to remain ahead
of the curve in a rapidly
growing industry
• Global management with
international expertise and
local knowhow
• Local know how with
veterinarians connect
• Region specific portfolio
• Customer centric;
relationship driven front
end
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Differential market attributes, Alivira’s distinctive approach
Indian Pharma
Approach
• Partner approach
• Price position with
Customer customers and gradually
Acquisition moving up the value chain
• Industry driven by patent
expiry
• High R & D focus with
large filings in US
Research
Unique Animal
Health/Veterinary
characteristics
• Branded generics market
• Veterinarian connect is
critical including the
relationship with farmers
• Few products under patent
protection
• Limited R&D focussed on
drug delivery & ease of use
• Complex regulatory
framework driving
disproportionate R&D
returns
Alivira’s Approach
• Established global front
end for last mile
partnership
Customized R&D approach
• Smart program with focus
on API & Formulations
• Multiple approaches
leveraging local knowledge
• Smart usage of resources
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Animal Health- The BEST of both worlds

Specialty Commodity Branded Global Animal

FMCG
Pharma Generic Generic Health
R&D for ease of use & drug
delivery
R&D Expenses
Complex regulatory
requirements leading to
disproportionate R&D
Regulatory Barriers returns

Few products under patent

protection
IP Barriers

Brand Building & Veterinarian connect is

local distribution critical including the
strength relationship with farmers
Local know how /
information No secondary market
availability database hence, business
developed on strong local
knowledge
Management
Complex & distinct
regional need

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Alivira- India’s largest animal Health Company

Formulations APIs

• Focus on global livestock market with
an organic-inorganic led strategy to
accelerate expansion
• Strong presence in Europe, LATAM,
Turkey, India, Africa & South East Asia
95+ • Wide range of products, predominantly in
Countries Anthelmintics & emerging NSAID portfolio
• Established relationship with top 10
25% veterinary companies with a steady
customer base across US, Europe, LATAM

• Recent foray into France & Ukraine

35+ & India
• India’s only FDA approved API
• Global R&D approach with localised R&D pipeline for API manufacturing facility in Vizag.
75%
& Formulations
manufacturing capabilities in
regulatory geographies.

25% APIs

450+ 4 12 23 2 30+
Finished Manufacturing Dosage Commercial Manufacturing Filings
Dosages Facilities Formats APIs Facilities
75% Formulations

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Advantageously placed in a growing opportunity

11.7
Industry to grow at a CAGR of ~7%
16.8
25.1
2014 18.1 with Production animal segment 2019
having the larger pie

Focus Area

Production Animals
Companion Animals
Global population
growth & focus
Increased Productivity on well being Increased
demand improvements of animals Increased
pet ownership
for animal medicalization
Changing global
protein for pets
lifestyle &
evolving habits
Heightened
Unmet
focus
medical
on food safety
needs

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*Figures in US$ billion.
Animal health – Large Growing and Diverse Sector
Total Animal Health Market Size (US$bn) CAGR
6.8
2010-14 2014-19
10.7
4.6 6.6% 7.2%
3.4 7.2
11.9 7.8% 8.1%
5.3
8.6
6.8 8.0% 8.2%
9.3 12.6
7.5 6.0% 6.7%

2010 2014 2019 5.5% 6.3%

Europe Asia-Pacific Rest of World

Animal Health Pharmaceuticals Feed Additives Vaccines

Market Size
(US$bn)

15.8 20.0
8.9 11.4 13.9
10.5 6.1
3.6 4.5
2010 2014 2019 2010 2014 2019 2010 2014 2019
Presence
Alivira’s

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Fast expanding market coverage

14%

20%
52%

15%

Europe
LATAM
Emerging Markets
Turkey 95+ countries and progressing

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Strong Management team

Manish Gupta Sharat Narasapur Tushar Mistry Shrikant Makode

CEO Global Manufacturing strategy Global Finance Global API Head

Ramon Vila Jose Nunes Filho Dr. Huseyn Aydin Dr. Sumit Saxena
Business Europe Business LATAM Business Turkey Business Emerging Markets

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Formulations – Skill & Scale
A steady foundation for global expansion

• Europe, LATAM, Turkey, India, • Comprehensive portfolio

Africa and SE Asia
• Recent foray into France &
Ukraine
covering feed, nutritional and
Geographic Product Portfolio therapeutic classes
Presence
• Addresses multitude of
species across therapy classes

Differentiators

• Possess a wide range of • Diversified manufacturing and

dosage forms including R & D base globally
injectables, powders, granules, Wide Dosage Follow the
solutions, suspensions and forms customer model • Customised market centric
topicals formulations

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Across Multiple Geographies

Geography Our Presence Growth Drivers & Focus Areas

▪ Establish Alivira front end presence across all top

▪ Front end team of 35+ with presence in 4 of
10 markets
the top 10 EU countries (ES, NL, BE, SE)
and 15 other EU markets through
▪ Expand distribution reach across all EU countries
distributors
Europe (29)
▪ 95+ product registrations with last mile
channel partnership for 27 EU companies ▪ Robust R&D pipeline (Cattle, poultry & Swine)
▪ Manufacturing & R&D base at Barcelona
▪ Addition of nutritional additives & supplements

▪ 3rd largest Animal Health Company in

Turkey (~10% market share)
▪ Largest producer of veterinary
Turkey pharmaceuticals
▪ Portfolio of 120+ products & 40+ field force
▪ Robust manufacturing capabilities
▪ Enhanced presence in cattle & sheep segment
▪ Strategic tie-up for entry into vaccine segment for
cattle
▪ Foray into poultry market

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Across Multiple Geographies
Geography Our Presence
▪ Brazil- 25+ registered products; GMP
manufacturing facility approved by MAPA,
LATAM Field force 11+
▪ Mexico- 28+ registered products; Field force
of 7+
▪ Africa- 14 key countries, 85+ approved
products - 14 field force (direct & indirect)
▪ South East Asia- 5 countries, 11 Indirect field
force, 65+ approved products
Emerging
▪ MENA - 6 countries, 12 Indirect field force,
Markets
24 registrations
▪ CIS Ukraine – Field force 3 & 3 registrations
▪ India Cattle & Poultry - 160+ field force; 44
approved products
Growth Drivers & Focus Areas
▪ Addition of therapeutic products, nutritional
additives & supplements
▪ Cross leverage of group portfolio
▪ In-license products leveraging EU relationships
▪ Expand into other LATAM markets
▪ Establish front end in parts of East Africa & South
East Asia
▪ New markets : Egypt, Saudi, Thailand, Tanzania, CIS
& Qatar
▪ Focus on innovative Non-antibiotic product
portfolio
India:
▪ Poultry : Leveraging Alivira global presence
▪ Ruminants : Focused approach on selected -
therapies, brands & territories
▪ Entry into vaccines for marketing in India– tie up
with IDT Biologika, Germany - a leading EU
company
▪ Foray into pet portfolio
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End to end capabilities for an integrated play
Manufacturing facilities R&D capabilities
Dosage Form Spain Turkey Brazil India Dosage Form Spain Turkey India

APIs APIs

Oral Solution
Oral Solution
Liquid for inhalation
Liquid for inhalation
Oral Suspension
Oral Suspension
Water Soluble Powder
Water Soluble Powder
Drug Premix
Drug Premix
Nutritional Feed Add.
Nutritional Feed Add.
Tablets
Pre Filled Syringes Pre Filled Syringe

Tablet Injectable

Inj. Solution Inj. Solution

Inj. Suspension Inj. Suspension

Granules for Injection Granules for Injection

Gases
Gases
Aerosols
Aerosols
Pour On / Spot On
Pour-on/ Spot-on
Disinfectants
Disinfectants

In Process In Process 17
API Edge In Animal Health
 Comprehensive API Business
Our dedicated USFDA approved facility at Vizag – 1st in the world
Anthelmentic
Business
43%
• Offers a 23 products globally
• Long standing relationships with global Top 10 animal
Antiemetic health companies
3%
Ecto-Parasiticides 3%
Beta Agonist 3%
3% 20% Key Products
Antibiotic Antiprotozoal
5% • Triclabendazole, Flunixin, Clorsulon, Fenbendazole,
Supplements 20% Albendazole & Praziquantel

NSAID / Anesthetics • R&D pipeline of more than 10 products

Strategic Progression
70%
Commercialized
• Expanding portfolio into newer therapeutic segments
12%
• Leveraging key existing customer relationships to expand
Under Feasibility
18% product basket across geographies

Under Development

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USFDA Approved Veterinary API facility

• World Class, State of the art manufacturing facility at

Vizag with annual capacity of 1,000 MT

• 224.6kl reactor capacity with six clean rooms and multi

product capabilities

• 45 acre land area with significantly enhanced capacities

& room for further growth

• Compliant to latest EHS regulations

• USFDA approved facility for foray into United States - the

largest animal health market – Key growth driver

Intermediates Facility : Tarapur, Maharashtra, India

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Relationship with Top 10 Global Animal Health Players – An Edge

Top 10 Animal Health

Under Discussion Under Qualification Commercialized
Companies
Company A 2 0 4

Company B 6 4 5

Company C 4 0 4

Company D 1 1 1

Company E 4 1 4

Company F 5 3 3

Company G 1 3 5

Company H 1 1 1

Company I 4 4 3

Company J 6 2 6

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Future Strategy
 Future Strategy

New Markets New Segments New Capabilities

• Expand presence in Top • Commercialization of • Expand EU Establish

10 EU markets Formulations R&D manufacturing Alivira as a top
pipeline across EU capability- 10 global
• Enter new Emerging • spot on
markets across MENA,
animal health
• Expand range of Phyto- • Pour on &
South East Asia & LATAM solutions and probiotics • Injectables
company by
product & technical FY2022
• Exploring North American offering • Investing heavily into
opportunity R&D to forward
• Focus on R&D in new integrate APIs into
• Building the Global high value APIs formulations.
ALIVIRA Brand

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Human APIs
Human APIs

Strategic Focus Pre- 2013 2016-17 Moving Ahead

• Niche & regulated • De-merging Human API

• Spot business
business business of SeQuent into
• Unregulated a new listed entity
market • Long term contracts
& profit sharing • New entity to have select
Focus on low API business of Strides
• Low margin model
volume, mature Shasun Limited thereby
APIs for Regulated providing critical size to
• Stable cash flows
Markets this business

• Proposed Company to be
amongst the largest
standalone API
companies

Pre-2013 2016-17

12 12 19 20% 45+ 27+ 55+ 80%

Countries Commercial Regulated Regulated Commercial Regulated Regulated
APIs Market Market Countries APIs & 11 Market Market
Filings Under Filings
Development
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Evolution to a compelling B2B business

Demerged the commodity API business of Demerged Human API business from SeQuent
Strides Shasun while retaining the captive APIs to operate as Pure Play animal healthcare
for the formulations operations company

Expansion across the regulated markets with Organic growth with over 80% regulated
key approvals and compliance record market business along with profit sharing
partnerships

Investments across the facilities to make it Strategic recourse to focus on market APIs
future ready on quality and EHS offering supply chain security for regulated
markets

Strides Arcolab merged with Shasun Pharma to Started journey as an unregulated API
integrate its formulations and secure API manufacturer
capabilities

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Solara Active Pharma Sciences

Capabilities Infrastructure Orientation Research Compliance

Complex chemistry 5 Globally compliant Consciously favouring Pipeline of 30+ Commitment to highest
capabilities including API facilities with all value over volumes products under levels of compliance,
handling catalytic regulatory approvals, thereby limiting pricing different stages of consistency and quality
hydrogenation, hydride presence in 40+ pressure in the long development to enable exemplary
reductions, countries, 75%+ term and creating customer experience
organometallic and regulated market sales capacities after and loyalty
amongst others and 70+ filings assuring demand

Pure Play API company with rich capabilities

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Financials
Q2 Update
Net Profit (INR mn)
Net Sales (INR mn) EBITDA (INR mn)
12.8%
88
7.8%
2605 2605
1687 1687
131
H1FY17
2652 2652 2295
2295 -43
H1FY18 -43
H1FY17

H1FY18 H1FY17 -76

H1FY18 H1FY17
Q2 Q1 Q2 Q1 Q2 Q1

Formulations API Human Health

▪ Significant YoY growth

▪ VET business grew by 9%
▪ Europe- 10%
YoY
Key ▪ Brazil- 54% ▪ Human health business
▪ US market: To gain
Highlights ▪ Turkey-50% grew by 23% during the
momentum with
▪ Established presence in France quarter
commercialization of key
▪ Recorded first commercial sale
APIs in H2FY18
in Ukraine

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 Business Performance
Net Sales (INR mn) Net Loss (INR mn)

FY15 FY16 FY17

11
9,151
6,214
4,654

-180
-667
FY15 FY16 FY17

EBITDA* (INR mn) Cash from Operations (INR mn)

FY15 FY16 FY17 FY15 FY16 FY17

21
-14
-264
881
305

552

Strong focus on execution leading to profitable operations

30
* FY16-17 & FY15-16 figures as per Ind AS; FY14-15 as per Indian GAAP
Strengthened Balance sheet
Gross Block & CWIP (INR mn) Total Debt (INR mn)

4,302
5,979

3,672

2,870
5,642

5,374

FY15 FY16 FY17 FY15 FY16 FY17

Current Ratio (x) Debt to Equity (x)

5.2
1.8

1.7
1.3

0.3

0.4
FY15 FY16 FY17 FY15 FY16 FY17
Investment to acquire growth assets, key ratios improved
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* FY16-17 & FY15-16 figures as per Ind AS; FY14-15 as per Indian GAAP
Takeaway- Aiming to become a Top 10 Animal Health Company by FY22
Business Model
• Capabilities and Scale with an
established business model
• Plans to enter new geographies
and expand product offerings
Leadership
• Strategic decision to create
global leadership for the
business
• On-going partnership with the
erstwhile management in
inorganic acquisitions
Compliance and Standards
• Strict adherence to global
standards of quality &
compliance
• Setting standards for the
veterinary industry
• Robust Governance practices
Operating Performance
• Strong operating performance
with asset sweating and robust
margins
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