FY15-16 EARNINGS PRESENTATION

30th May 2016

For updates and specific queries, please visit our website www. aurobindo.com

Aurobindo Pharma undertakes no obligation to publicly revise any forward looking statements to
reflect future events or circumstances.

These factors include, but are not limited to, general market, macro-economic, governmental and
regulatory trends, movements in currency exchange and interest rates, competitive pressures,
technological developments, changes in the financial conditions of third parties dealing with us,
legislative developments, and other key factors that we have indicated could adversely affect our
business and financial performance.

While these forward looking statements represent our judgment and future expectations
concerning the development of our business, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ materially from our expectations.

This presentation contains statements that constitute forward looking statements including and
without limitation, statements relating to the implementation of strategic initiatives, and other
statements relating to our future business developments and economic performance.

Disclaimer

Oral Formulations
Inj & Opthalmics
Ceph Oral

III
IV
VI B
VII (SEZ)
XII
Auro Life USA
Auronext
Total
166

215

27

36

Final Approval Tentative Approval

Mar-15 Mar-16 Mar-15
Mar-16
91
93
19
19
8
28
2
10
11
29
54
8
15
19
19
9
10

17
2
183

16
3
147

Under Review
Mar-15 Mar-16
4
12
58
37
1
101
79

Total
Mar-15 Mar-16
114
124
66
67
11
11
138
148
19
19
26
26
2
3
376
398

*Tentative Approvals include 21 ANDAs approved under PEPFAR, not for commercialization in the US market

Oral Formulations
Penem Inj

Penicillin Oral & Inj

Oral Formulations

Details

Unit

Unit wise ANDA Filings as on 31-Mar-2016

Global presence with 87% of sales from international markets, spanning across more than 150 countries

Vertical integration with in-house API for ~75% of its Formulation products

Launched 28 products during the FY 2015-16

23 approved in Q4 FY16; 58 approved in FY16

Final Approval 49 (20 Injectables, 29 Oral)
Tentative Approval 9 (2 Injectables, 7 Oral)

Well entrenched US portfolio of 398 filed ANDAs

11 ANDAs filed in Q4 FY16; total 22 ANDAs filed in FY16
251 total approved including 36 Tentative* Approval

Business Highlights

API- INR 775 cr

Board approved Interim dividend of INR 0.70 per equity share of INR 1/for the quarter

Effective Tax Rate at 27.2%

PAT after minority interest at INR 562.8 cr; Margin at 15%

R&D cost at INR 160cr, 4.3% of sales

EBITDA at INR 882.3 cr representing 23.5% margin

Formulations - INR 3,011 cr;

US INR 1,666cr
EU INR 841cr
ARV INR 328cr
Emerging Market INR 176cr

Revenues (net of Excise duty) increased by 19% to INR 3,747 cr (US$

556 Mn)

Financial Highlights-Q4 FY15-16

Q4 FY15-16 Revenue Breakup

API- INR 2,884 cr

Net Debt at US$ 584 Mn as on 31 March 2016

Gross Debt at INR 4,708 cr (US$ 711 Mn)
Cash at INR 840 cr (US$ 127 Mn)

Board approved Interim dividend of INR 0.70 per equity share of INR
1/- for the quarter; total dividend for the financial year at INR 2.5 per
equity share of INR 1/-

Effective Tax Rate at 27.3%

Capex spent during the year is ~US$ 212 Mn

PAT after minority interest at INR 1,982 cr; Margin at 14.3%

R&D cost up by 38% at INR 477cr, 3.4% of sales

EBITDA at INR 3,205.6 cr representing 23.1% margin; 190 bps higher

than the previous year

Formulations - INR 11,166 cr;

US INR 6,144cr
EU INR 3,130cr
ARV INR 1,200cr
Emerging Market INR 691cr

Revenues (net of Excise duty) increased by 14.6% to INR 13,896 cr

(US$ 2,128 Mn)

Financial Highlights FY15-16

2,000

4,000

6,000

8,000

10,000

12,000

14,000

15.2

5,855

21.2

12,121

23.1

13,896

EBITDA Margin (%)

FY15-16 Revenue Breakup

Revenue (INR Cr)

FY11-12 FY12-13 FY13-14 FY14-15 FY15-16

13.2

4,627

8,100

26.4

28
26
24
22
20
18
16
14
12
10

FY13

3,708

1.7

FY14

4,107

2.1

FY15

4,913

2.7

FY16

5,762

2.6

FY13

8.8

11.8

FY13

15.2

Gross Block is calculated as Tangible Assets + Intangible Assets-Goodwill

1000

2000

3000

4000

5000

6000

Gross Fixed Asset Turnover Ratio

Gross Block (INR Cr)

Gross Block & Fixed Asset Turnover

Sales (INR Cr)

Financial Performance

FY15

13

21.2

FY14

24.1

Avg ROE
36.7

FY15

26.2

35.2

Avg ROCE

14.3

23.1

FY16

26.2

32.2

FY16

PAT Margin

Average ROE & ROCE %

FY14

14.5

26.4

EBITDA Margin

EBITDA & PAT Margin (%)

FY14

FY15

FY16

34

FY13

1.23

3.6

FY14

0.95

1.7

1.6

FY16

0.54

1.2

Net Debt/EBITDA

FY15

0.77

Net Debt/Equity

Net Debt/Eq & Net Debt/EBITDA

FY13

20

27

EPS (INR/Share)

3,162
1,788

3,747
2120

Net Operating Income

656
20.7%

882
23.5%
(4.6)
21
25
111
771
563
67.38

EBIDTA (excl. Fx & other

income)

Fx (Gain) / Loss

Other Income

Finance Cost

Depreciation

PBT

PAT (after minority interest)

Avg Fx Rate US$ 1= INR

62.20

404

557

85

23

(1.2)

1,132

56.6%

1237

Overheads

56.6%

79%

80%

Formulations % of sales

Gross Margin

676

775

API

2,517

3,011

Formulations

Q4
FY15

Q4
FY16

Value INR Cr

65.77

535

721

99

23

(13)

23.5%

823

1,119

55.6%

1,942

3,495

80%

695

2,837

Q3
FY16

Consolidated Financial Performance

65.31

1,982

2,722

393

93

68

66

23.1%

3,206

4,533

55.7%

7,739

13,896

79%

2,884

11,166

FY16

61.04

1,576

2,168

333

84

81

60

21.2%

2,564

4,051

54.6%

6,615

12,121

77.9%

2,706

9,559

FY15

60.28

1,173

1,533

313

108

22

203

26.4%

2,134

2,359

55.5%

4,494

8,100

65%

2,864

5,378

FY14

609

Fx Loan US$ Mn

Debt Profile

691

688

181
3,588
599
2.9%

Cash Balance
Net Debt
Net Debt (US$ Mn)
Finance Cost

1.9%

638

3,989

471

4,460

55

50

4,355

62.50

Mar-15

2.0%

584

3,867

840

4,708

42

106

4,600

66.26

Mar-16

Fx Debt and Fx Cash Balance are reinstated

3,769

65

Sales Tax Deferment

Gross Debt

53

Rupee Loan

3,651

59.92

Closing Rate1 US$ = INR

Fx Loan restated in INR

Mar-14

Debt as on (INR Cr)

Registered Office:
Plot No. 2, Maitrivihar, Ameerpet, Hyderabad 500038

Corporate Office:
Water Mark Building, Level-1, Plot No.11, Survey No. 9, Kondapur, Hitech City, Hyderabad - 500084

Investor Relations:
Deepika Gupta Padhi
Phone: +91-40-66725000/5401
+91 98486 67906
Email:
ir@aurobindo.com

For updates and specific queries, please visit our website www. aurobindo.com

Thank You

1.7
1.1
1.9
11.0
4.4
2.1
6.5
17.5
63%

Europe

Emerging Market

ARV

Formulations Sales

Betalactum

Non-Betalactum

API Sales

Gross Sales

Formulations as %
of Gross Sales
63%

19.5

7.2

66%

21.8

7.4

2.7

4.8

4.5
2.7

14.4

2.2

1.3

1.5

9.3

Q3

12.3

2.3

0.9

1.7

7.3

Q2

FY14

68%

23.7

7.5

2.7

4.8

16.1

1.9

1.3

1.8

11.2

Q4

77%

29.5

6.7

2.2

4.5

22.8

2.2

1.4

8.0

11.2

Q1

77%

29.2

6.9

2.4

4.5

22.4

1.4

1.6

7.7

11.7

Q2

79%

32.0

6.7

2.2

4.6

25.3

3.3

1.3

8.6

12.0

Q3

FY15

79%

31.9

6.8

2.4

4.4

25.2

2.7

1.4

7.7

13.4

Q4

78%

33.6

7.2

2.5

4.8

26.4

3.0

1.7

7.4

14.3

Q1

80%

33.7

6.9

2.6

4.3

26.8

2.7

1.7

7.6

14.8

Q2

80%

35.3

7.0

2.5

4.5

28.4

3.1

1.8

7.8

15.7

Q3

FY16

Vertical integration with in-house API for around 75% of its Formulation products

Formulations segment witnessed continuous growth and is now 80% of total sales up from 63% in Q1 FY14

6.2

Q1

USA

INR Bn

Sales Break-Up

80%

37.9

7.7

2.7

5.0

30.1

3.3

1.8

8.4

16.7

Q4

1. 1
2.0

23.4
31.0
30.3

30.3

PBT (before exceptional item)

PAT before exceptional items

Total Shareholder Funds

Total Gross Debt

Net Debt

Gross Fixed Assets (net of Goodwill)

1.3
5.0
1.7

Gross Debt / Shareholders funds (x)

Net Debt / EBIDTA (x)

Asset Turnover Ratio (x)

Ratios

1.0

13.2%

EBITDA (before Fx and other income) %

to Operating income

Finance Cost

45.5%

Gross margin % of operating income

2.0

46.3

Net Operating Income

Depreciation / Amortization

FY12

Value INR Bn

5 Year Financial Snapshot

1.7

3.6

1.3

37.1

32.3

34.4

26.1

2.9

3.7

1.3

2.5

15.2%

48.9%

58.6

FY13

2.1

1.7

1.0

41.1

35.9

37.7

37.5

11.7

15.3

1.1

3.1

26.4%

55.5%

81.0

FY14

2.7

1.6

0.9

49.1

39.9

44.6

51.6

15.7

21.7

0.8

3.3

21.2%

54.6%

121.2

FY15

2.6

1.2

0.7

57.6

38.7

47.1

70.6

19.8

27.2

0.9

3.9

23.1%

55.7%

138.9

FY16

10

314

49

SA**

Canada***

1,443
109
565

Europe**

CoS

Others**
2,418

627

106

1,504

181

2,284

72

334

1,542

336

As at
Mar 14

2,588

681

114

1,601

192

2,560

83

345

1,756

376

As at
Mar 15

*Includes filings made from AuroLife Pharma LLC, USA (net of ANDAs withdrawn)
**includes multiple registration; ***excludes withdrawn
For Europe Formulations, as on 31 March 2016 additional 1,601 MAs have been transferred from Actavis

In total 376 APIs are filed across geographies with multiple registrations

2,289

172

US

Total

API

1,973

1,341

Europe**

Total

269

As at
Mar 13

US*

Formulations

Category

Filing details as on 31st March 2016

2,724

715

118

1,689

202

3,101

105

374

2,224

398

As at
31.03.16

84 products

1,328 Dossiers
(149 products)
167 Registrations
(84 products)

251 (FA: 215,

TA:36)

Approvals

11

Non antibiotics, Solid Orals

Non antibiotics, Solid & Liquid Orals (EU)
Antibiotics, Injectables
Pharma OTC, Solid Orals

Unit X*

Unit XV

Unit XVI*

APL Healthcare

* Under construction / Yet to be operationalized

Vertically integrated operations from conception to commercialization

Peptides

AuroPeptide

API plants equipped with particle size modifications systems to supply

compacted and micronized materials

High specification manufacturing plants approved by key regulators

equipped by site dedicated control laboratories located in India

Penems (Sterile)

Penems (Non-sterile)
AuroNext

Silicon LS

CVS, Anti fugal

Nutraceuticals

Natrol

Unit XIV

Antibiotics (Non-sterile)

Unit XI U

Pharma OTC / Orals and Liquids

AuroLife

AuroHealth

Oncology & Hormones

Eugia*

Non antibiotics

Antibiotics

Brazil Unit

Cephalosporins (Sterile)

Unit XI

Penem formulations

AuroNext

Unit VIA

Antibiotics (Sterile & Non-sterile)

Non antibiotic & Controlled substances

Antibiotics, injectables, Orals

Unit XII

Unit V

12

Intermediates for non antibiotics, Penems

Intermediates

Non antibiotics, ARVs / Orals

Unit VII

Unit II

Cephalosporin

CVS, CNS, Anti-Allergics, Non-Sterile

Unit IX

Cephalosporin / Orals

Unit VI B

Unit IA

Unit I

Product Capabilities

ARV, CVS, CNS (Non-sterile)

Injectables (Non-antibiotics)&Ophthalmics

Unit IV

Site

Active Pharma Ingredients

Unit VIII

Non antibiotics, ARVs / Orals

Unit III

Product Capabilities

Large manufacturing capabilities approved by key regulators for a

diversified product portfolio with technology & expertise for specialty
formulations

Site

Finished Dose Formulations

Extensive Manufacturing Base with High Quality Control and

Compliance

13.4%
5.5%
9.4%
100%

29.1

MF / Insurance

Other Bodies Corporates

Retail Investors

Total

Equity base (shares # Cr)

149.1

70.1

42.4

82.5

M-Cap at close (INR Bn)

Shareholder family (# 000)

29.1

29.1

29.1

100%

9.7%

2.2%

9.8%

23.7%

54.6%

As on
31.03.14

Equity Capital (INR Cr)

16.8%

FII

Face Value (INR)

54.9%

As on
31.03.13

Promoter Group

Group

Shareholding Pattern

75.2

356.7

29.2

29.2

100%

8.6%

1.6%

6.2%

29.6%

54.0%

As on
31.03.15

115.9

435.9

58.5

58.5

100%

9.1%

2.4%

7.2%

27.4%

53.9%

As on
31.03.16

Non-Promoter Holding 46.1%

13