Sun Pharma IR Presentation

Creating Lasting Value
Investor Presentation May 2017
NSE:SUNPHARMA | BSE:524715 |
Bloomberg:SUNP IN | Reuters:SUN.BO
WWW.SUNPHARMA.COM
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 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.
Sun Pharmaceutical Industries Limited. All Rights Reserved. 2

Contents
1 Sun Pharma at a glance
2 Long-term Strategy
3 Global Specialty Initiatives
4 Revenue Composition, History & Acquisition Track Record
5 Business Operations, R&D, Manufacturing
6 Corporate Governance
7 Financials P&L, Balance Sheet, Cash Flows & Ratios
8 Key Milestones Targeted

Sun Pharma at a glance
4th Largest Global Specialty Generic Company
US Ranked 4th in US* / Largest Indian Pharma Company in US
India No. 1 Pharma Company in India
Amongst the largest Indian Pharma Company in Emerging

Emerging Markets Markets
Europe Expanding presence in Europe
Manufacturing Footprint 42 manufacturing sites across the world
Presence in more than 150 countries across branded and generic

Market Presence markets
Product Portfolio Portfolio of more than 2,000 products across the world
Employees 34,000+ global employee base
Multiple facilities approved by various regulatory authorities

Quality Compliance across the world including USFDA
Capabilities across dosage forms like injectables, sprays,
R&D and Manufacturing ointments, creams, liquids, tablets and capsules
Specialty products, branded generics, complex generics, pure
Addressable Segments generics & APIs
* Source: Evaluate Pharma for 12 months ended Dec 2016
Worlds 4th Largest Specialty Generic Pharma Co
2016 Worldwide Generic Sales (US$ in billions)
Teva 9.9
Mylan 9.6
Novartis 9.0
Sun Pharma 4.6
Allergan 4.2
Pfizer 3.5
Endo International 2.5
Fresenius 2.5
Lupin 2.5
Sanofi 2.1
Aspen Pharmacare 2.0
Aurobindo 1.9
Cipla 1.7
Dr. Reddy 1.7
Nichi-Iko Pharma 1.6
Source: Evaluate Pharma

Sun Pharma today
US Formulations India Branded Generics
4th largest generics company in US* with one of the No.1 ranked with 11 classes of doctor categories
strongest pipeline (157 ANDAs & 5 NDAs awaiting Leading position in high growth chronic therapies
approval) Specializes in technically complex products
Presence in generics, Specialty and branded segments FY17 sales: US$ 1,155 mn (2)
with more than 427 approved products Emerging
FY17 sales: US$ 2,051 mn (2) Markets Western
Market cap: US$ 19 bn (1) 15% Europe &
India Gross Sales: US$ 4,512 mn (2) Other
26% India Markets #
EBITDA: US$ 1,308 (29% margin) (2)
Geographical
Branded 9%
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%
Emerging Markets Western Europe, Canada, Japan ANZ & others

Presence in over 100 countries across Africa, Americas, Presence across majority of markets in Western Europe,
Asia and Eastern & Central Europe Canada, Japan and A&NZ
Key focus markets Brazil, Mexico, Russia, Romania, Product portfolio includes differentiated offerings for
South Africa, and complementary & affiliated markets hospitals, injectables and generics for retail market
FY17 sales: US$ 675 mn (2) FY17 sales: US$ 385 mn (2)
Note:
(1) As of May, 29, 2017 using spot exchange rate of INR /USD = 64.55
(2) Using average exchange rate for FY17 of INR /USD = 67.07
# Includes Western Europe, Canada, Australia & New Zealand, Japan and other markets.
All sales numbers in US$ for 12 months ended March 31, 2017.

Driving Long Term Growth
Vertically integrated operations

Enhance share of specialty business
globally Optimize operational costs
Achieve differentiation by focusing on
technically complex products
Focus on key markets achieve
critical mass
Speed to market
Ensure sustained compliance with
Create
global regulatory standards sustainable Cost
revenue streams leadership
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

Our Specialty Initiatives
In-licensed Tildrakizumab (a monoclonal antibody targeting IL-23) from MSD for
treating chronic plaque psoriasis- Filed with US FDA and EMA for European market.
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 branded oncology product Odomzo in Dec16. Product is approved in 30

countries globally including US, Europe and Australia, Initiated marketing in the US.
Ramping up Launched BromSite first specialty ophthalmology product in US in Nov16

Specialty
Pipeline
Acquired Dusa Pharma in US Access to patented drug-device combination useful for
treating Actinic Keratosis, a dermatology ailment
Acquired InSite Vision - Focuses on developing new specialty ophthalmic products, has
three late stage programs.
In-licensed Xelpros (ophthalmology) and Elepsia (CNS) products from SPARC
Entered into a joint venture with Intrexon Corporation for developing gene-based
therapies for ocular diseases

Highly Diversified Revenue Base
Emerging Markets
15%
Western Europe &
Other Markets #
9%
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.

Impressive Track Record of Growth
(All Figures in INR Billion)
302.6 87.8 69.6
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
67.7 33.9 29.0
19.4
23.9 Operating Free Cash 10.8 Adjusted

Cash Flow Flow EPS (Rs)
CAGR CAGR 3.3 CAGR
1.9 -1.6 0.7 28%
0.7 36% 0.4 35%

Consistent profitability and returns
Gross Margin # EBITDA Margin Net Margin (adjusted)
83% 44% 45% 35%
82% 32%
75% 77%
73% 29% 29% 23%
27%
18% 19%
FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17
ROCE ROE Market Cap (USD Bn)

27% 27% 31% 35
26% 30
25
16% 19% 20%
15% 15% 18% 20
16
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 )

Sustained Profitability Vs. Peers
Superior business model
Margins consistently higher than peers#
Gross Margin EBITDA Margin Net Margin
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.

Creating Value, Continuously
Licensing agreement with Almirall for
Tildrakizumab in Europe for Psoriasis
Announced positive results from Phase-3
trials for Tildrakizumab
Entry into Japan -Acquired 14 brands from
Began with 5 Acquired URL Novartis
IPO - Rs. 550 Mn Acquired Taro Acquired Dusa Acquired Biosintez in Russia
products Pharma
raised Acquired Global rights for Seciera & Odomzo
BromSite launch in US
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

Key Deals & Rationale
Year Deals Country Rationale
Acquired global rights for Seciera &
2016 Global Enhances specialty pipeline.
Odomzo
2016 Acquired Biosintez Russia Local manufacturing capability to enhance presence in Russian market
Licensing agreement with Almirall for
2016 Europe Strengthening the distribution of Tildrakizumab in Europe
Tildrakizumab for Psoriasis
2016 Acquired 14 brands from Novartis Japan Entry into Japan
Distribution agreement with Distribution services agreement in India for brand Oxra &
2016 India
AstraZeneca Oxramet (brands of dipagliflozin, used for diabetes treatment)
2015 Acquired InSite Vision Inc. US Strengthens branded ophthalmic portfolio in U.S.
2015 Acquisition of GSKs Opiates Business Global Markets Vertical Integration for controlled substances business
Distribution agreement with Distribution services agreement in India for brand Axcer (brand of
2015 India
AstraZeneca ticagrelor, used for the treatment of acute coronary syndrome)
5th largest Global Specialty Generic Pharma Company, No.1 Pharma
2015 Sun Pharma Ranbaxy Merger Global Markets
Company in India & Strong positioning in Emerging Markets
In-licensing agreement with Merck for
2014 Global Markets Strengthening the specialty product pipeline
Tildrakizumab a biologic for psoriasis
Sterile injectable capacity in the US, supported by strong R&D
2014 Acquired Pharmalucence US
capabilities
2013 Acquired URLs generic business US Adds 107 products to US portfolio
2012 Acquired DUSA Pharma, Inc. US Access to branded derma product
Acquired Taro Pharmaceutical Dermatology & Topical Product
2010 Israel
Industries Ltd. Manufacturing Plant at Israel & Canada
1997 Acquired Caraco Detroit, US Entry into US Market
Successful track record of turning around
acquisitions
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)
US Business
45% of Revenues

US Business at a glance
4th Largest Pharma Company in the US Generics Market *
Largest generic dermatology company and amongst top 5

Dermatology Segment branded dermatology company in the US
Wide basket of 584 ANDAs & 41 NDAs filed and 427 ANDAs & 36
Comprehensive Portfolio NDAs approved across multiple therapies
157 ANDAs & 5 NDAs pending FDA approval, including a

Robust Pipeline combination of complex generics, FTF opportunities and pure
generics
Market Presence Presence in generics, branded & OTC segments
Integrated manufacturer with flexibility for manufacturing

Flexible Manufacturing onshore/ offshore
Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets,

Dosage Forms Capsules, Drug-Device combination

US Business - Significant Ramp-up in Sales
Key Milestones in US
Sales in Rs billion
FY98 Entry in US through Caraco acquisition
137 138 FY98-FY10 Ramp-up in US business

135
Launched many complex generics &
FY08 onwards few FTFs
Acquired Taro Pharma Entry into
FY10 dermatology market
98 Acquired DUSA - Entry in branded
FY13 specialty market
FY13 Acquired URLs generic business
Acquired Pharmalucence -access to

FY14 sterile injectable capacity
62
Acquired InSite Vision Strengthen
FY16 ophthalmic portfolio
Acceptance of Tildrakizumab filing
35
by US FDA for US market
23 Potential access to Seciera, a
15
14 11 product for treating dry eyes.
5 FY17 Acquired Ocular Technologies
Launched BromSite in US
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Acquired Odomzo- branded

oncology product from Novartis

ANDA Pipeline - Significant ramp up
ANDAs Filed and Approved 427 ANDA Approvals by Therapeutic Area
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
Cumulative Products Filed Cumulative Products Approved

(Cumulative nos for FY16 are lower than FY15 due to Bryan facility divestment.
Taro numbers added since Mar 2011, URL numbers added since Mar 2013 &
Ranbaxy numbers added for March15) (As of March17)

India Branded
Generic Business
26% of Revenues

India Business at a glance
No. 1 in India
No. 1 ranked with 8.6% market share
Market Position**
Growth of 11% in-line with average industry growth of 10%
Prescription Ranking## No. 1 ranked by prescriptions with 11 different classes of doctors
Chronic Segment Market leader in the chronic segment
Acute Segment Strong positioning in the acute segment
Specializes in technically complex products and offers a complete

Product Offering therapy basket
Strong Brand Positioning** 30 brands in the countrys top 300 pharmaceutical brands
Top 10 Brands contribute approx. 18% of India revenues

De-risked Growth**
Growth driven by a basket of brands low product concentration
Extensive Sales Force 9,200+ strong field force covering over 600,000* doctors
** - As per AIOCD AWACS data for 12 months ended March17

## - As per SMSRC data for Feb17 * Does not exclude overlaps
Largest Pharma Company in India
Market Share Branded Generic Sales in India as of 12 Months ended Mar 2017 (US$ in mn)
Sun Pharma 8.6% 1,422
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$

India Business Sales ramp-up
Leadership in chronic segment; Strong positioning in acute segment
30 brands in top 300 brands of country
Sales in Rs Billion
Therapeutic Revenue Break-up
Others
77 Opthalmology 2% 6%
Cardiology
71 Respiratory 4% 19%
67 Vitamins /
Minerals /
Nutrients, 4%
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
As per AIOCD AWACS March 17

Strong Customer Focus Drives Market Share Gains
Therapy focused marketing Strong increase in market share

9,200+ sales representatives Sun pharma market share has consistently
increased from 2.4% in 2000 to 8.1% in
Covering over 600,000* doctors
2016 (IMS Data for Dec16)
* Does not exclude overlaps
Market Share (%) as per IMS Dec MAT

Year -2000 % Year -2005 % Year -2010 % Year -2015 % Year -2016 %
Sun Pharma 2.4 Sun Pharma 3.3 Sun Pharma 3.7 Sun Pharma 8.1 Sun Pharma 8.1
Cipla 4.7 Cipla 5.1 Cipla 5.4 Cipla 5.2 Cipla 5.2
Lupin 2.0 Lupin 2.2 Lupin 2.7 Lupin 3.2 Lupin 3.3
Cadila 3.8 Cadila 3.7 Cadila 3.7 Cadila 3.4 Cadila 3.2
DRL 2.6 DRL 2.3 DRL 2.3 DRL 2.4 DRL 2.3
Torrent 1.8 Torrent 1.9 Torrent 2.0 Torrent 2.4 Torrent 2.3
Glenmark 1.0 Glenmark 1.2 Glenmark 1.5 Glenmark 2.0 Glenmark 2.1
Wockhardt 2.2 Wockhardt 1.9 Wockhardt 2.0 Wockhardt 1.6 Wockhardt 1.5
Ipca 1.1 Ipca 1.3 Ipca 1.4 Ipca 1.5 Ipca 1.5
Ranbaxy 4.8 Ranbaxy 4.9 Ranbaxy 4.9 Unichem 1.0 Unichem 1.1

Leadership in key therapeutic areas*
Number 1 Ranking with 11 Doctor Categories*
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
*Ranks based on prescription share

Source-Strategic Marketing Solutions and Research Centre (SMSRC) Prescription Data
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
Well trained and scientifically

oriented sales representatives team
with strong performance track record
FY11 FY12 FY13 FY14 FY15 FY16 FY17 Field force with highest productivity
amongst key players in India
Sales Per Representative (Rs. Mn)

Emerging Markets
15% of Revenues

Emerging Markets Business at a glance
Largest Indian Company in Emerging Markets
Global footprint Presence in over 100 markets
Brazil, Mexico, Russia, Romania, South Africa and complementary

Focus Markets & affiliated markets
Product Portfolio Extensive basket of branded products
Customer Focus Strong relationships with doctors and medical practitioners
Sales Force Approximately 2,300 Sales Representatives
To cross-sell products between Sun Pharma and Ranbaxy

Opportunity marketing infrastructure
Local Manufacturing Across 9 countries
Acquired Biosintez to enhance presence in Russian market in

Russia Acquisition Nov 16 Gives access to local manufacturing facility.

Western Europe, Canada, Japan, ANZ & Other
Markets
9% of Revenues

Western Europe & Other Markets at a glance
Amongst the leading Indian Companies

Across all major markets in Western Europe, Canada, A&NZ, Japan
Market Presence and few other markets
Expanding basket of products including injectables and hospital

Product Portfolio products as well as products for retail market
Development and commercialization of complex generics and

Focus differentiated products to drive sustainable and profitable growth
Sales Force Distribution led model
Local Manufacturing At Canada, Israel and Hungary + Servicing from India facilities
Acquired 14 established prescription brands from Novartis in

Japan Entry March16

Global Consumer Healthcare Business

Global Consumer Healthcare Business
at a glance
An Attractive Opportunity
India Amongst the top 10 consumer healthcare companies
Global Presence Operates in about 20+ countries
Core markets include. India, Russia, Romania, Nigeria, South

Africa & Myanmar
Market Focus
Growth markets include Ukraine, Poland, Kazakhstan, Thailand &
UAE
Strong Brand Equity Enjoy strong brand equity in 4 countries
Sales Force Promoted through dedicated sales force in each market
Amongst top 10 consumer healthcare companies in India,

Strong Positioning Romania, Nigeria & Myanmar

Active Pharmaceutical
Ingredients (API) Business
5% of Revenues

API Business
Backward Integration Strategic Importance
Backward integration provides cost competitiveness and supply

Strategic Importance reliability
Customers Large generic and innovator companies
Product Portfolio Approximately 300 APIs
Pipeline Development Approx. 20 APIs scaled up annually
291 DMF/CEP approvals to date

Regulatory approvals
428 DMF/CEP Filings to date
Manufacturing Across 14 facilities
Opiates Business Acquired GSKs Opiates business in Australia in Sept15

Research & Development

Research & Development
Cumulative R&D Spend of Rs 110 billion to date
R&D spend at 7.6% of Net Sales for FY17

R&D Spend
Strong cash flows & large scale to support R&D investments
Strong research teams in generics, finished dosage development,

Capabilities biological support, chemistry
2,000 scientists globally with capabilities across dosage forms like

Organization orals, liquids, ointments, gels, sprays, injectables
Strong team of intellectual property experts supporting R&D

IPR Support (internal and external lawyers)
Developing non infringing formulations and development of

Focus specialty/complex products

R&D Investments
R&D Expenditure Filings and Approvals
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
R&D Expenses (Rs Bn) R&D Exp (% of Sales)

As of March 31, 2017

Global Manufacturing
Presence

Global Manufacturing Presence
World Class Manufacturing Infrastructure
42 manufacturing facilities across India, the Americas, Asia, Africa,

Extensive Global Footprint Australia and Europe
Vertically integrated network across six continents enabling high

Integrated Network quality, low cost and a quick market entry across the geographies
One of the few companies that has set up completely integrated

Capabilities manufacturing capability for the production of oncology,
hormones, peptides, controlled substances and steroidal drugs
High quality manufacturing facilities. Many of the plants have

High Quality received approvals from US FDA, UK MHRA and various other
regulatory authorities
Ability to manufacture a variety of dosage forms Orals, Creams,

Dosage Forms Ointments, Injectables, Sprays, Liquids

Global Manufacturing Footprint
Tiszavasvari Haifa Penza
(Hungary) (Israel) (Russia)
Ontario (Canada)
(US) Cluj (Romania)

New Jersey(US)
Billerica, MA Giza, (Egypt)
Lagos (Nigeria) Kuala Lumpur
Tennessee (Malaysia)
Be-Tabs,
South Africa)
Cranbury Bangladesh Plant

Port Fairy (Australia)
Wilmington M.A.
Latrobe, (Australia)
(India)
(India)
Iztapalapa Baddi
Jammu
(Mexico) Mohali Halol
Toansa Karkhadi
Malanpur Guwahati
Dewas Sikkim (2 units)
Paonta Silvassa
Ankleshwar
Goa
Panoli
Dadra
Ahmednagar
Maduranthakam
Formulation Plant API Plant Formulation & API Plant
Dahej
Finished Dosage Manufacturing
28 Finished dosage manufacturing sites
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
Orals Injectables / Sterile Topicals
Tablets / Capsules Vials Dry powder Creams

Semisolids Ampoules Eye drops Ointments
Liquids Pre-filled Syringes MDI
Suppository Gels Aerosols
Lyophilized Units
41
Sun Pharmaceutical Industries Limited. All Rights Reserved.
API Manufacturing
14 API manufacturing locations
India : 9, Australia : 2, Israel : 1, US : 1, Hungary : 1
Panoli & Ahmednagar Australia, Hungary &

(both India) Tennessee (US)
International regulatory
approvals: USFDA, API Controlled substances
European Key Plants manufacture
Stand alone units for

peptides, anti-cancer,
steroids, sex hormones
42
Sun Pharmaceutical Industries Limited. All Rights Reserved.
Corporate Governance
Our philosophy on corporate governance envisages

working towards high levels of transparency,
accountability and consistent value systems across all
facets of operations
Chairman Independent Directors & Members of Audit Committee

Israel Makov Ashwin Dani Keki Mistry
Former President Non-Executive Vice Vice Chairman
& CEO of Teva Chairman, & CEO, HDFC Ltd.
Pharma. Industries Ltd. Asian Paints Ltd. .
.
Independent Director Hasmukh Shah S. Mohanchand
Rekha Sethi Former Chairman of Dadha
Director General Gujarat Gas & Former Former Chairman &
All India Management Chairman & Managing Managing Director, TDPL
Association (AIMA) Director, IPCL .
.
Financials

Financials
Market Capitalisation Rs. 1,206 billion / US$ 19 billion ( All Figures in Rs. Mn )
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

Sales Break-up
In INR Billion In USD Million
Sales 275 279 303 4,501 4,262 4,512
175 245
16 381 225 385
11 15 26 330
23 22 611
675
45 548
37 36
2244 2066 2051

138
137 135
71 77 1090 1093 1155

67
FY15 FY16 FY17 FY15 FY16 FY17

India Formulations US Formulations #Exchange Rate : US$1 = Rs 61.13 (for FY15)
US$1 = Rs 65.43 (for FY16)
Emerging Markets Rest of World
US$1 = Rs 67.07 (for FY17)
API+Others Rest of world includes all formulations sales excluding US & India

EBITDA Trend
In INR Billion
Sales 81 112 160 272 279 303
% of Sales
21% 19% 17%

25% 23%
27%
14% 13%
15%
16% 17%
16%
24% 25%
24%
30% 33% 28%
41% 44% 44%

29% 27% 29%
FY12 FY13 FY14 FY15 FY16 FY17
EBITDA Other Expenditure Personnel Costs Material Costs

Cash Flow
Net Cash From Operating Activities (Rs Bn) Free Cash Flow (Rs Bn)
34
68 33
31
56
25
40 19
34
15
24
22

Financial Ratios
FY13 FY14 FY15 FY16 FY17
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

Key Financials Q4 & FY17
( All Figures in Rs. Mn )
Q4 FY17 Q4 FY16 CHANGE FY17 FY16 CHANGE

Gross Sales 68,252 74,160 -8% 3,02,642 2,78,881 9%
Gross Profit 46,300 60,074 -23% 2,21,335 2,15,577 3%
Gross Margin 68% 81% 73% 77%
EBITDA 12,357 20,336 -39% 87,751 75,594 16%
EBITDA Margin 18% 27% 29% 27%
Net Profit 12,228 14,161 -14% 69,644 45,457 53%
Net margin 18% 19% 23% 16%
Net Profit (Adjusted) 12,228 14,161 -14% 69,644 52,309 33%
Net margin (Adjusted) 18% 19% 23% 19%
R&D 6,002 7,111 -16% 23,138 23,025 0%
R&D as % of Net Sales 8.8% 9.6% 7.6% 8.3%
EPS (Diluted) INR 5.1 5.9 -13% 29.0 18.9 54%
EPS (Diluted) INR (Adjusted) 5.1 5.9 -13% 29.0 21.7 34%
All Financials are as per IND-AS

Sales Breakup Q4 & FY17
( All Figures in Rs. Mn )
Q4 FY17 Q4 FY16 CHANGE FY17 FY16 CHANGE

Formulation
India 19,164 17,435 10% 77,491 71,497 8%
US 25,545 39,103 -35% 1,37,588 1,35,169 2%
Emerging Markets 12,127 8,365 45% 45,299 35,843 26%
ROW 7,323 5,332 37% 25,832 21,618 19%
Sub-total 64,159 70,235 -9% 2,86,210 2,64,128 8%
Bulk 3,955 3,760 5% 15,979 14,025 14%
Others 138 165 -16% 454 728 -38%
Gross Sales 68,252 74,160 -8% 3,02,642 2,78,881 9%
US Formulations
India Branded Generics

26%
28%
15%
Emerging Markets Q4 Q4 11%
Western Europe & Other Markets # FY17 11% FY16

7%
53%
6% 5%
API & Others 37%
All Financials are as per IND-AS # Includes Western Europe, Canada, Japan, Australia, New Zealand and other markets

Key Milestones targeted for future
Enhance share of specialty/branded business

US Continue to focus on complex generics and high entry barrier segments
Business Ensure broad product offering to customers across multiple dosage forms
Gain critical mass in key therapeutic segments
Improve productivity of India business

India Maintain leadership position in a fiercely competitive market
Business Continuously innovate to ensure high brand equity with doctors
Gain critical mass in key emerging markets

RoW Enhance product basket in emerging markets
Business Improve profitability in developed European markets

Key Milestones targeted for future
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
Ensuring 24x7 compliance to cGMP is imperative for a global business

Regulatory/ Continuously enhance systems, processes, human capabilities to ensure compliance
Quality with global regulatory standards
Ensure resolution of consent decree at Ranbaxys facilities
Target sustainable and profitable growth

Financial
Deliver on the US$ 300 million synergy benefits from Ranbaxy acquisition by FY18

FY18 Guidance
Consolidated Revenues May decline by single digit over FY17
R&D Investments Approximately 9%-10% of revenues to be invested in R&D
Target US$ 300 million in synergy benefits from the Ranbaxy

Ranbaxy Integration Synergy acquisition by FY18
Investing for Future Invest in R&D and in building the specialty business

Sun Pharma at a glance
4th Largest Global Specialty Generic Company
US Ranked 4th in US* / Largest Indian Pharma Company in US
India No. 1 Pharma Company in India
Amongst the largest Indian Pharma Company in Emerging

Emerging Markets Markets
Europe Expanding presence in Europe
Manufacturing Footprint 42 manufacturing sites across the world
Presence in more than 150 countries across branded and generic

Market Presence markets
Product Portfolio Portfolio of more than 2,000 products across the world
Employees 34,000+ global employee base
Multiple facilities approved by various regulatory authorities

Quality Compliance across the world including USFDA
Capabilities across dosage forms like injectables, sprays,
R&D and Manufacturing ointments, creams, liquids, tablets and capsules
Specialty products, branded generics, complex generics, pure
Addressable Segments generics & APIs
Thank You!
For more information please contact:
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.
This material was used during an oral presentation; it is not a complete record of the discussion. This work may
not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or
form or in any media without the prior written consent. All product names and company names and logos
mentioned herein are the trademarks or registered trademarks of their respective owners.
NSE:SUNPHARMA, BSE: 524715, Reuters: SUN.BO, Bloomberg: SUNP IN
CIN: L24230GJ1993PLC019050
www.sunpharma.com

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Creating Lasting Value

Investor Presentation May 2017

Sun Pharmaceutical Industries Limited. All Rights Reserved. 2

3 Global Specialty Initiatives

4 Revenue Composition, History & Acquisition Track Record

5 Business Operations, R&D, Manufacturing

7 Financials P&L, Balance Sheet, Cash Flows & Ratios

8 Key Milestones Targeted

Sun Pharmaceutical Industries Limited. All Rights Reserved. 3

India No. 1 Pharma Company in India

Amongst the largest Indian Pharma Company in Emerging

Europe Expanding presence in Europe

Manufacturing Footprint 42 manufacturing sites across the world

Presence in more than 150 countries across branded and generic

Employees 34,000+ global employee base

Multiple facilities approved by various regulatory authorities

Sun Pharma 4.6

Endo International 2.5

Aspen Pharmacare 2.0

Dr. Reddy 1.7

Nichi-Iko Pharma 1.6

Source: Evaluate Pharma

Sun Pharmaceutical Industries Limited. All Rights Reserved. 5

Emerging Markets Western Europe, Canada, Japan ANZ & others

Sun Pharmaceutical Industries Limited. All Rights Reserved. 6

Vertically integrated operations

Sun Pharmaceutical Industries Limited. All Rights Reserved. 7

Acquired branded oncology product Odomzo in Dec16. Product is approved in 30

Ramping up Launched BromSite first specialty ophthalmology product in US in Nov16

In-licensed Xelpros (ophthalmology) and Elepsia (CNS) products from SPARC

Sun Pharmaceutical Industries Limited. All Rights Reserved. 8

Sun Pharmaceutical Industries Limited. All Rights Reserved. 9

302.6 87.8 69.6

67.7 33.9 29.0

23.9 Operating Free Cash 10.8 Adjusted

Sun Pharmaceutical Industries Limited. All Rights Reserved. 10

ROCE ROE Market Cap (USD Bn)

Sun Pharmaceutical Industries Limited. All Rights Reserved. 11

Gross Margin EBITDA Margin Net Margin

Sun Pharmaceutical Industries Limited. All Rights Reserved. 12

Sun Pharmaceutical Industries Limited. All Rights Reserved. 13

Sun Pharmaceutical Industries Limited. All Rights Reserved. 16

Largest generic dermatology company and amongst top 5

157 ANDAs & 5 NDAs pending FDA approval, including a

Market Presence Presence in generics, branded & OTC segments

Integrated manufacturer with flexibility for manufacturing

Liquids, Creams, Ointments, Gels, Sprays, Injectable, Tablets,

* Source: Evaluate Pharma for 12 months ended Dec 2016

Sun Pharmaceutical Industries Limited. All Rights Reserved. 17

137 138 FY98-FY10 Ramp-up in US business

FY13 Acquired URLs generic business

Acquired Pharmalucence -access to

Acquired Odomzo- branded

Sun Pharmaceutical Industries Limited. All Rights Reserved. 18

ANDAs Filed and Approved 427 ANDA Approvals by Therapeutic Area

Cumulative Products Filed Cumulative Products Approved

Sun Pharmaceutical Industries Limited. All Rights Reserved. 19

Sun Pharmaceutical Industries Limited. All Rights Reserved. 20

Prescription Ranking## No. 1 ranked by prescriptions with 11 different classes of doctors

Chronic Segment Market leader in the chronic segment

Acute Segment Strong positioning in the acute segment

Specializes in technically complex products and offers a complete

Top 10 Brands contribute approx. 18% of India revenues

** - As per AIOCD AWACS data for 12 months ended March17