Q2 FY22 Press release

Cipla announces Q2 FY22 results

Growth momentum across core therapies and markets continue

and sustained cost control drives EBITDA margin of 22.2%

Income from Operations	EBITDA	PAT
INR 5,520 Cr	INR 1,226 Cr │22.2%1	INR 711 Cr │12.9%1
10% YoY	4% YoY	7% YoY

1. as a % of revenue

Mumbai, October 26, 2021: Cipla Limited (BSE: 500087, NSE: CIPLA) today announced its unaudited consolidated financial results for quarter ended September 30th, 2021.

Key highlights of the quarter

• One India: Overall business grew by 16% YoY on high FY21 base led by sustained volume traction across core therapies; covid portfolio contribution normalising in-line with expectations
• SAGA: Continued market beating growth in South Africa private business; SAGA grew 8% YoY in USD terms
• US business: Reported USD 142Mn revenue at multi-quarter high; Steady momentum in core products offsetting price erosion in rest of the portfolio
• R&D investments stand at INR 274 crore; Priority projects spends on track
• Continued healthy net cash positive position led by growth in operating profitability and prudent working capital management; Prepaid USD 137.5Mn outstanding InvaGen acquisition debt during the quarter

"I am pleased to see the strong momentum in core therapies across our branded markets and sustained cost control leading to 10% revenue growth and 22.2% EBITDA margin for the quarter, offsetting price erosion and normalising covid contribution. In India, we continue to drive strong performance led by sustained volume traction despite a high FY21 base. Our collaboration with Eli Lily for their diabetes products helps us further strengthen our endeavour of creating access to innovative medicines in-line with the One-India strategy. The US business also witnessed healthy run rate driven by core portfolio and desired traction in respiratory franchise across Albuterol and Arformoterol. International markets rebounded in-line with expectations despite continuing geopolitical challenges. Featuring in the Forbes World's Best Employers 2021, affirms our commitment to promote a positive and inclusive culture and sustained efforts to build a future fit organisation"

Umang Vohra

MD and Global CEO, Cipla Ltd

For Queries Contact:

Corporate Communications	Investor Relations	Cipla Ltd.
Cipla House,
Heena Kanal	Naveen Bansal
Peninsula Business Park,
[e-mail]	[e-mail]
Ganpatrao Kadam Marg,
		Lower Parel, Mumbai-400013

ONE-INDIA

❖

• Overall business grew by 16% YoY in INR terms over high FY21 base
• The branded prescription business continued strong performance driven by sustained volume traction across therapies in core portfolio; covid portfolio contribution normalising in-line with expectations
• Trade generics business reported healthy order flow across regions benefiting from strong demand regions and continued momentum in flagship brands
• Consumer health business witnessed robust traction in anchor brands & transitioned brands
• Strategic partnership with Eli Lilly for Diabetic products Humalog® and TrulicityTM

Therapy	Market rank	Market share
Overall Chronic	2	7.8%
Respiratory	1	23.1%
Urology	1	14.6%
Anti-infective	3	7.5%
Cardiac	5	5.3%

Source: IQVIA MAT September 2021

SAGA - SOUTH AFRICA, SUB-SAHARAN AFRICA AND GLOBAL ACCESS

• SAGA grew 8% YoY in USD terms
• South Africa private business continued market beating growth during the quarter; Market beating growth in CNS, respiratory and anti-infectives therapies
• SSA & CGA: Performance attributed to delays in order confirmation from select clients

Market segment	Market rank	Market share	Cipla growth	Market growth
South Africa private	3	7.3%	8.7%	5.4%
South Africa OTC	3	6.8%	8.0%	10.6%

Source: IQVIA MAT August 2021

NORTH AMERICA

• Steady momentum in core products offsetting price erosion in rest of the portfolio
• In Albuterol, Cipla's TRx market share stood at 18.2% of the generic market and 14.6% for the overall market as per IQVIA week ending 8th October 2021
• In Arformoterol, Cipla's TRx market stood at 39% of the generic market and 24% for the overall market as per IQVIA week ending 8th October 2021
• New approval: Difluprednate Ophthalmic Emulsion 0.05%

INTERNATIONAL MARKETS (EMERGING MARKETS & EUROPE) & API

• International markets grew 14% YoY in USD terms
• Emerging markets business resumed middle eastern supplies, demonstrated strong DTM performance and contribution from Covid therapy products
• Bevacizumab Biosimilar launched under partnership in Spain
• In API, sales momentum was supported by strong customer relationships

CONSOLIDATED PROFIT & LOSS STATEMENT

	In INR Cr				Q2FY22				Q2FY21				Y-o-Y				Q1FY22			Q-o-Q
									Growth						Growth
	Total Revenue from Operations	5,520				5,038					10%			5,504			0.3%
	EBITDA			1,226				1,177					4%			1,346			-9%
	% of Income from Operations	22.2%				23.4%				-114bps		24.5%				-224bps
	PAT			711				665					7%			715^			-0.5%
	% of Income from Operations	12.9%				13.2%				-32bps			13.0%				-10bps
	^ Includes impact of impairment
	BUSINESS-WISE SALES PERFORMANCE$
		Business (In INR Cr.)			Q2FY22				Q2FY21				Y-o-Y				Q1FY22				Q-o-Q
										Growth					Growth
	India (Rx + Gx + CHL)		2,416			2,090						16%					2,710				-11%
	North America		1,055			1,035							2%					1,038				2%
	SAGA#		994			923								8%					837				19%
		South Africa^			710				568							25%					634				12%
	International Markets*		821			722							14%					582				41%
	API		172			189							-9%					302				-43%
	Others		62			81				-23%					36				72%
		Total			5,520				5,038						10%					5,504				0.3%

$ Financials are rounded-off│# Includes South Africa, Sub-Saharan and Cipla Global Access business, excludes SA Animal Health│^ Excluding SA Animal Health| * International Markets include Emerging Markets and Europe| CHL - Cipla Health limited

BALANCE SHEET:

Key Balance Sheet Items (In INR Cr.)	September-21	June-21
Equity	19,673	19,462
Total Debt	1,100	1,931
Inventory	5,550	5,532
Cash and Cash Equivalents*	3,557	4,895
Trade Receivables	3,505	3,416
Net Tangible Assets	5,623	5,721
Goodwill & Intangibles	4,779	4,941

* Includes current investment and excluding unclaimed dividend balances

EARNINGS CONFERENCE CALL

The Company will host an Earnings conference call at 1900 hrs IST (2130 hrs SST/HKT, 1430 hrs BST, 0930 hrs US ET), during which the leadership team will discuss the financial performance and take questions. A transcript of the conference call will be available at www.cipla.com.

Earnings Conference Call Dial-	October 26, 2021 at
in Information Date and Time	1900	- 2000 hrs IST
	2130	- 2230 hrs SST/HKT
	1430	- 1530 hrs BST
	0930	- 1030 hrs US ET
Dial-in Numbers
Universal Access	Primary Access: ([phone]) | ([phone])
Diamond pass link	Click hereto register
Local Access	Available all over India: ([phone])
Toll-free Number	USA: + 1 3233868721
	UK: + 44 2034785524
	Hong Kong: + 852 30186877
	Singapore: + 65 31575746

Playback of Earnings Conference Call audio:

Playback of the earnings call will be available after the end of the call on the following number:

	Phone number	Access code	Replay Dates
Local Toll	India ([phone])	49147#	October 26, 2021 to November 2,
India ([phone])		2021

ABOUT CIPLA LTD

Established in 1935, Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets. Our strengths in the respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments are well-known. Our 46 manufacturing sites around the world produce 50+ dosage forms and 1,500+ products using cutting-edge technology platforms to cater to our 80+ markets. Cipla is ranked 3rd largest in pharma in India (IQVIA September 2021), 3rd largest in the pharma private market in South Africa (IQVIA MAT August 2021), and is among the most dispensed generic players in the U.S. For over eight decades, making a difference to patients has inspired every aspect of Cipla's work. Our paradigm-changing offer of a triple anti-retroviral therapy in HIV/AIDS at less than a dollar a day in Africa in 2001 is widely acknowledged as having contributed to bringing inclusiveness, accessibility and affordability to the centre of the HIV movement. A responsible corporate citizen, Cipla's humanitarian approach to healthcare in pursuit of its purpose of 'Caring for Life' and deep-rooted community links wherever it is present make it a partner of choice to global health bodies, peers and all stakeholders. For more, please visit www.cipla.com, or click on Twitter,Facebook,LinkedIn.

Disclaimer: Except for the historical information contained herein, statements in this presentation and the subsequent discussions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties including the impact of Covid-19 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, our ability to obtain regulatory approvals, technological changes, fluctuation in earnings, foreign exchange rates, our ability to manage international operations and exports, our exposure to market risks as well as other risks.