Date: 11th August, 2023

BSE Limited National Stock Exchange of India Limited

Corporate Relation Department Listing Department
Phiroze Jeejeeboi Towers, Exchange Plaza, C-1,
1, Block-G,
Block
Dalal Street, Bandra-Kurla Complex,
Mumbai - 400001. Bandra (East), Mumbai - 400051.
Scrip Code: 524404 Symbol: MARKSANS

Sub: Investor Presentation

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations,
ions, 2015, kindly find enclosed herewith the inve
investor
stor presentation for Q1FY24.

We request you to take the aforesaid on record.

Thanking You.

Yours faithfully,
For Marksans Pharma Limited
Digitally signed by
HARSHAVARDH HARSHAVARDHAN
PANIGRAHI
AN PANIGRAHI Date: 2023.08.11 18:22:42
+05'30'

Harshavardhan Panigrahi
Company Secretary

Encl: As above
 Q1FY24

Earnings
Presentation
11th August 2023
 Safe Harbor
Certain statements in this presentation concerning our future growth prospects are forward looking statements, which

involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such

forward-looking statements. The company's results may be affected by factors including, but not limited to, the risks

and uncertainties in pharmaceutical research and development; competitive developments; regulatory actions;

litigation and investigations; business development transactions; economic conditions; and changes in laws and

regulations, including health care reform. The company undertakes no duty to update forward-looking statements

except as required by applicable law.

2
 Q1FY24 Financial and Business Highlights

Table of Contents About Marksans Pharma

Marksans Pharma is India’s leading

pharmaceutical company specializing in the
research, manufacturing, and marketing of Roadmap for the future
generic pharmaceutical formulations

ESG

3
Q1FY24 Business & Financial Highlights
 Management Commentary
“We have had a strong start to FY24, with our revenue crossing INR 5 bn in the first quarter,
reflecting our commitment to strengthening our OTC portfolio. We continue to experience an
increase in wallet size from existing customers which reinforces our strong capabilities and
relationship with our customers, we intend to strengthen the momentum in the coming quarters.
The integration and scalability of acquired Teva Pharma’s manufacturing unit in Goa is proceeding as
planned.

Looking ahead, we remain focused to drive sustainable growth and creating superior shareholder
value.” Mark Saldanha
M A N A G I N G D I R E C TO R A N D C E O

₹ 500.0 cr ₹ 102.0 cr ₹ 70.4 cr ₹ 636 cr

+15.3% +39.9% +17.0%
(YoY) (YoY) (YoY) as of June 30th, 2023

Q1FY24 Revenue Q1FY24 EBITDA Q1FY24 PAT Cash Balance

5
Financial Highlights Q1FY24 – YoY Performance

YoY Growth
₹ Cr. Q1FY24 Q1FY23 % YoY Performance

Revenue growth is being driven by market share increases

Revenue 500.0 433.8 15.3% and new launches in the UK and Europe, the US,
Australia, and New Zealand regions

Gross Profit 257.3 218.9 17.5% Gross Profit improved mainly on account of better product
mix and reduction in rates of few raw materials
Gross Margin % 51.5% 50.5%

EBITDA 102.0 72.9 Improvement in EBITDA margins was led by cost

39.9% optimization initiatives and the normalization of freight
EBITDA Margin % 20.4% 16.8% expenses

PAT 70.4 60.2 Overall, PAT growth is due to improved performance,

17.0% however, there is an increased tax rate in the UK from 19%
Net Profit Margin % 13.8% 13.4% last year to 25% in the current year

6
Financial Highlights Q1FY24 – QoQ Performance

QoQ Growth
₹ Cr. Q1FY24 Q4FY23 % QoQ Performance

Revenue growth is driven by share gains with existing

Revenue 500.0 486.0 2.9%
customers and markets

Gross Profit 257.3 242.1 6.3% Gross Profit improved mainly on account of better product
mix and reduction in rates of few raw materials
Gross Margin % 51.5% 49.8%

Employee expenses increased due to the onboarding of

EBITDA 102.0 109.5 6.9% Teva’s acquired manufacturing facility employees. Other
Expenses increased on account of the addition of newly
EBITDA Margin % 20.4% 22.5% acquired facility costs

PAT 70.4 82.7 Tax rates in the UK increased from 19% to 25% in the
14.8% current year resulting in higher tax provisions, which
Net Profit Margin % 13.8% 16.6% impacted PAT margins

7
Other Highlights
Revenue from operations in Q1FY24 is at Rs 500.0 cr. , out of which US revenues is at Rs 193.3 Cr. , UK and Europe
revenues at Rs 225.9 Cr., and Australia and New Zealand revenues at Rs 58.6 Cr.

Cash Balance at the end of 30th June 2023 is at Rs 636 cr. in Q1FY24

Research & Development (R&D) spend Rs 8.46 cr. in Q1FY24

In Q1FY24, Cash from Operations is at Rs 34.3 cr. and Free Cash Flow is at -47.2 cr. on account of high capex in
the quarter

In Q1FY24, the capex incurred was Rs 81.5 cr. Capex investment is in-line with our plan for scaling the
acquired manufacturing unit from Teva Pharma in Goa

Working capital cycle for the quarter was ~120 days

The company received FDA approval for a key product, Acetaminophen, and Ibuprofen Tablets, 250 mg/125 mg
(OTC), the OTC equivalent of Advil@ Dual Action Tablets.

8
 Q1FY24 Financial Trends
Operating Revenue (₹ Cr.) Gross Profit (₹ Cr.) & Gross Profit Margin (%)
50.5% 50.7% 50.1% 49.8% 51.5%
49.4%

229.4 240.3 257.3

218.9 242.1
206.4
479.8 486.0 500.0
418.1 433.8 452.6

Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

EBITDA (₹ Cr.) & EBITDA Margin (%) PAT (₹ Cr.) & PAT Margin (%)
120 22.5% 25.00% 20.00%
20.4% 16.6%
13.8%
100
16.8% 17.7% 109.5 20.00%
16.0% 102.0 13.4% 12.9% 15.00%
80
15.2% 12.5% 82.7
80.3 15.00% 70.4
76.6 60.2 60.1 62.3
60 72.9 10.00%
63.6 10.00% 6.8%
40

5.00% 29.7 5.00%

20

0 0.00% 0.00%
Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24

9
 Q1FY24 Revenue spilt by Market

USA UK and Australia RoW

Regions Europe and New
Zealand

% of total Operating
38.7% 45.2% 11.7% 4.4%
Revenues

YoY Revenue -15.4%

11.2% 24.8% 11.4%
Growth
• Revenue from the USA • Revenue from the UK and Europe • Revenue from the Australia • Revenue from RoW region in
region in Q1FY24 is INR region in Q1FY24 is INR 225.9 cr. and New Zealand region in Q1FY24 is INR 22.2 cr.
193.3 cr. grew by 11.2% YoY grew 24.8% YoY on account of Q1FY24 is INR 58.6 cr. grew declined by 15.4% YoY
on account of new product new launches, incremental 11.4% YoY due to
launches and also due to an market share, and also on incremental market • 20.7% CAGR over FY17-23
increase in the wallet size of account of better realization due
existing customers to currency fluctuation. share • ROW includes markets of
Southeast Asia, MENA,
• 15.1% CAGR over FY17-23 • 10.2% CAGR over FY17-23 Russian Federation & Africa
• 12.1% CAGR over FY17-23
• One of the leading Indian
pharmaceutical firms in the UK in
terms of revenue. 10
 Segmental Mix

Therapeutic Segment-Wise Split Segment Revenue Split

6.8% 8.2%
11.7% 13.9% 12.7% 14.6%
7.5% 8.3%
8.6% 7.3% 6.6%
8.5%
6.0% 1.6% 44.1%
8.8% 20.6% 18.4% 10.9% 51.0%
3.6% 8.1% 54.7% 58.6%
11.7% 6.0% 11.4% 68.6%
6.3% 6.7% 14.0% 74.4%
9.0% 8.5%
12.4% 13.8% 13.1%
9.0% 9.2%

15.4% 15.4% 14.5%

51.2% 55.9%
43.9% 44.0% 49.0% 45.3% 41.4%
31.4% 29.6% 30.8% 31.4%
25.6%

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Pain management Cardiovascular System (CVS)
Cough and cold Central Nervous System (CNS)
Anti-diabetic Gastrointestinal RX OTC
Others*
11
 Consolidated Profit and Loss Statement
Particulars (₹ cr.) Q1FY24 Q1FY23 Q4FY23 YoY QoQ FY23 FY22 YoY
Operating Revenue 500.0 433.8 486.0 15.3% 2.9% 1,852.1 1490.8 24.2%
Gross Profit 257.3 218.9 242.1 17.5% 6.3% 930.8 774 20.3%
Gross Margin % 51.5% 50.5% 49.8% 95 bps 165 bps 50.3% 51.9% -170 bps
EBITDA 102.0 72.9 109.5 39.9% -6.9% 339.3 258.9 31.1%
EBITDA Margin % 20.4% 16.8% 22.5% 359 bps -211 bps 18.3% 17.4% 100 bps
Finance Costs 1.6 1.8 2.4 -12.4% -34.3% 9.1 8.4 8.1%
Depreciation & Amortization 13.7 11.1 13.9 23.1% -1.7% 51.9 44.8 15.8%
Other Income 10.1 16.5 11.0 -38.8% -8.2% 59.3 41.9 41.7%
Profit before tax 96.8 76.4 104.2 26.7% -7.1% 337.7 247.5 36.4%
Taxes 26.4 16.3 21.5 61.9% 22.7% 72.3 60.7 19.2%
PAT 70.4 60.2 82.7 17.0% -14.8% 265.3 186.8 42.0%
Net Profit Margin % 13.81% 13.40% 16.6% 41 bps -279 bps 13.9% 12.2% 170 bps
Diluted EPS (INR) 1.52 1.46 2.0 3.8% -24.2% 6.4 4.5 42.2%

12
About Marksans Pharma
Marksans Pharma - At a Glance

Market Reach Accreditations Cash in hand

Global footprint- Present in 50+ countries USFDA, UK MHRA, Australian Cash position of ₹636 cr. and a net debt-
~96% revenue generated from the regulated TGA, EU, Health Canada and free position as of 30th June 2023
markets of the US, UK and Europe,
Japanese Health Authority
Australia, and New Zealand.

Employee Products Free Cash Flow

300+ products in the form of tablets (plain, Healthy Free Cash Flow of
1400+ employees enteric coated and film coated), hard & soft
gelatin capsule, oral liquids and ointments
₹183.8 cr. in FY23

Manufacturing and R&D Capabilities Product Pipeline Net debt negative balance sheet
Strong pipeline of more than
for last five years
4 Manufacturing Units in Goa, UK and USA 76 products
4 R&D centers in Goa, Navi Mumbai, UK
and USA

14
 Manufacturing Capabilities
Manufacturing Facility in Southport, UK
• Manufactures non-sterile liquids, ointments and powder
sachets
UK • Supplies to UK, West Africa & Middle East
• Spread across 7,300 sq. meters
C A PAC I T Y ACC R E D I TAT I O N S
2 bn bottles per annum
1 bn tubes per annum

1 bn sachets per annum

USA INDIA

Manufacturing Facility in Farmingdale, USA Existing Manufacturing facility in Goa New Teva Pharma acquired a
• Manufactures hard gels, tablets • Manufactures Capsules & Tablets Manufacturing facility in Goa
and capsules • One of the biggest manufacturing facilities in • Scalable capacity with a plan to
• Spread over an area of 7000 sq. m Asia double the existing Indian capacity
• "Made in the USA” product • Fully-automated unit spread over 18,000 sq. from 8bn units per annum
offering meters campus • Manufacturing site is spread across
• Added incremental packaging lines • Generic pharmaceuticals manufactured from 47,597 sq mt
this facility are exported across the globe • Plan to manufacture tablets, hard
C A PAC I T Y AC C R E D I TAT I O N S and soft gel capsules, ointments,
C A PAC I T Y AC C R E D I TAT I O N S liquids, creams
6 bn tablets
2.4 bn softgel and hard AC C R E D I TAT I O N S
and hard
gelatin capsules per
capsules per
annum
annum 6 bn solid tablets per
annum
15
Business Structure
Supply and Distribution through a network of subsidiaries

100% 100% 60% 100%

100% 100% 100%

Distribution of Engaged in the business

quality generic of marketing of
Manufactur 162+ pharma medicines in the UAE
er of OTC product Manufacturer of
range of OTC & Rx and neighboring
Liquids & licenses;
products; countries.
Ointments Only OTC
Wholesale
450+ distributor Supplies products
OTC/SKU of generic 50+ Regional sales through the Dubai
products pharma products portfolio development across Health Authority (DHA)
Asia (China, Japan,
100+ MA
Singapore, Vietnam, Derma focused
Sri Lanka and South products range
Korea)

16 16
OTC Store Brand Retailers/Customers
• In the OTC Segment, Marksans manufactures store brands (private label manufacturing) for
retailers/customers and manufactures OTC products through its own label as well.
• The company has more than 1500+ SKUs and 300+ products
• Marksans is a preferred store brand partner where our capabilities and expertise in private-label
manufacturing have helped sustain and grow our long-lasting partnership with top retailers in key regions

Long-lasting partnership for store brand manufacturing with the leading retailers across our key geographies

Our top Our top Our top

Retailers/Customers in USA Retailers/Customers in UK Retailers/Customers in
Australia

17
 High Growth Trajectory

Operating Revenue (₹ Cr.) EBITDA (₹ Cr.) Net Profit (₹ Cr.) Segmental Revenue Mix (%)
1,852.1 265.3
339.3
58%
74%

767.2
42%
44.7 26%
11.3
FY17 FY23
FY17 FY23 FY17 FY23 FY17 FY23 Rx OTC

ROE (%) ROCE (%) Net Debt to EBITDA (%) Fixed Asset Turnover Ratio (x)
17.8% 18.8% 3.7
1.9
2.9

4.8% FY17 FY23

2.5%
(2.0)

FY17 FY23 FY17 FY23 FY17 FY23

ROE = Net Profit after taxes/Average ROCE = EBIT / Capital employed || Capital
Shareholder’s Value employed = Tangible Net Worth + Total Debt + 18
Deferred Tax Liabilities
Roadmap for the future
 Roadmap for the future

Consistent Growth in
Topline and
Profitability

Strengthening the OTC Business

Backward Integration for sustained Supplement growth through Continued product launches through
• Aim to capture a significant part
margin development acquisitions a healthy product pipeline
of the multi-billion-dollar OTC
opportunity. According to • Strong product pipeline followed
• Aim to expand Gross & EBITDA • Marksans will follow calibrated by successful launches led by
IQVIA, Global OTC Size in 2022 is
margin through backward inorganic growth approach continued focus on R&D
$176 billion.
integration • Expansion in growing markets • Strong pipeline of more than 76
• Marksan’s OTC segment grew at
• Marksans is in the process of and EU through acquiring front- products.
CAGR of 18% (from FY17-FY23)
Backward integration , API end marketing and distribution
Majority of revenue in OTC
manufacturing for captive companies is the focus area
comes from manufacturing and
consumption and top 10 • Marksans has a strong balance
selling store brands (private label
molecules sheet to support the growth
manufacturing) for key retailers
in key regions
• Marksans is the most preferred
and growing store brand low-
cost manufacturing partner

20
 The OTC Opportunity (1/2)

Global OTC Drugs Market ($ Bn)

• In 2022, the OTC market grew by 10.4% YoY to achieve total
210
global sales of $176 billion.
176 • North America and Western Europe have the highest market
shares
• North America OTC holds around ~25% of total global sales
106
• Robust growth is projected for the global OTC market over
the next four years despite continued macroeconomic
challenges, inflationary pressures, cost of living increases, and
changing consumer behaviors. In 2023, 6.8% growth is
forecasted
• The prescription to over-the-counter (Rx to OTC) drugs switch
2016 2022 2025f - increasing demand for and availability of OTC drugs is
Source: IQVIA OTC Review driving this market segment
Source: IQVIA OTC Review

Marksans Pharma’s OTC business is present in US, UK & Europe, Australia, and a few RoW nations. The company is present in the largest markets
by total OTC drugs sales and its focus is to expand the footprint.

21
 The OTC Opportunity (2/2)

Category Value Share • According to IQVIA, Cough and cold and Respiratory, Pain Relief,

Nutrition, Gastrointestinal, Dermatology, and Allergy are the

Nutrition 22.1%
largest OTC therapeutical segments globally according to total OTC

Gastrointestinal 15.7%
sales

• Marksans is currently present in large market-size therapeutical

Cough and cold and Respiration 14.7%

segments in OTC -Pain Management, Cough and Cold,

Pain Releif 14.6%
Gastrointestinal, and Anti-Allergic – Our near-term focus is to

Dermatology 9.9%
create a complete product offering in these four segments

• The company’s focus is to get into the liquids, creams, and

Allergy 4.2%
ointments OTC category
Source: IQVIA OTC Review | Global OTC Category Performance – YTD November 2021

22
Continued product launches through a healthy product pipeline
Strong product pipeline followed by successful launches led by continued focus on R&D

• Planned 34 new filings over

the next three years
• In addition, 16 products are
already filed and awaiting • 10 products are in the pipeline
approval and expected to be launched
over the next two years

UK Australia and New Zealand

USA Rest of World
• 32 products are in the pipeline • 124 products approved
• 20 are oral solids • 120 products awaiting
• 12 are ointments and creams. approval
Within oral solids • 108 products are in the
• 4 are Softgels Pipeline

23
 Key Product Launches
Brand Composition Therapy Segment Market
LOSARTAN LOSARTAN 25 MG, 50 MG, 100 MG TABLETS Anti-Diabetic UK
ONDANSETRON ONDANSETRON 4MG, 8 MG TABLETS Gastrointestinal UK
CARVEDILOL CARVEDILOL 3.125 MG, 6.25 MG, 12.5 MG, 25 MG TABLETS Cardiovascular System(CVS) UK
TRAMADOL TRAMADOL 50 MG CAPSULES Pain Management UK
CLOPIDOGREL CLOPIDOGREL 75 MG TABLETS Cardiovascular System(CVS) UK
PREDNISOLONE PREDNISOLONE 5 MG TABLETS Anti-Allergic UK
ROSUVASTATIN ROSUVASTATIN 5MG, 10MG, 20MG, 40 MG TABLETS Cardiovascular System(CVS) UK
BICALUTAMIDE BICALUTAMIDE 50MG , 150MG TABLETS Anticancer UK
FUROSEMIDE FUROSEMIDE 20MG, 40MG TABLETS Cardiovascular System(CVS) UK
LIQUIDS - LORATIDINE LORATIDINE 5MG/5ML ORAL SOLUTION 70ML GSL PACK Anti-Diabetic UK
LIQUIDS - IBUPROFEN IBUPROFEN 100 MG/5ML ORAL SOLUTION 200 ML P PACK Pain Management UK
LIQUIDS - ALL IN ONE SOLUTION PARACETAMOL, GUAIFENESIN, PHENYLEPHRINE Cough and Cold UK
APAP ER ACETAMINOPHEN EXTENDED RELEASE 650MG Pain management US
CETRIZINE TABLETS CETRIZINE 5MG, 10MG Anti Allergy US
FLUOXITINE CAPSULES FLUOXITINE 10MG, 20MG, 40MG Central Nervous System(CNS) US
FAMOTIDINE TABLETS FAMOTIDINE TABLETS USP, 10 MG and 20 MG Gastrointestinal US
ACETAMINOPHEN AND
ACETAMINOPHEN AND IBUPROFEN TABLETS, 250 mg/125 mg Pain Management US
IBUPROFEN TABLETS
FLUOXETINE ORAL SOLUTION FLUOXETINE 20MG/5ML ORAL SOLUTION Central Nervous System(CNS) UK
PREGABALIN CAPSULES, 25 MG, 50 MG, 75 MG, 100 MG, 150 MG,
PREGABALIN CAPSULES Central Nervous System(CNS US
200 MG, 225 MG, and 300 MG.

24
 R&D Capabilities
R&D Centers
R&D (₹ Cr.) and R&D % to sales
Expected to increase to ~4-5 % over the next few years
35.0 4.0%

1.5% 2.0% 1.6% 1.7%

1.4% Southport, United Kingdom
30.0
0.6% 0.6% 0.7% 2.0%
30.2 29.5
25.0 0.0%
Farmingdale, United States

20.0 -2.0%
Navi Mumbai, India
Goa, India
18.9
15.0 -4.0%

14.6
10.0 -6.0%

8.3 8.5
5.0 -8.0%

4.5 5.3
0.0 -10.0%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24

Continued focus on R&D investments Plans to enhance portfolio with Focus is on developing soft gels and
leading to a robust pipeline of new addition of 12-13 products every year different delivery system like extended
developed & pipeline products release, liquid, OTC products and ointments

4 50+ 70+ 350+ 300 25+

R&D Products Dossiers Approved Filed
Centres Scientists in Pipeline filed ANDAs/MAs ANDAs/MAs

25
25
Investment Rationale

Follows calibrated inorganic

growth approach: Marksans Funding through strategic
Pharma has a proven record of investors and promoters: Headroom for Significant
successful and capital-efficient Orbimed and Promoters fund Multiple Expansion
acquisitions and creating a unique infusion has provided
forward-integrated model in key significant strength for organic
regions and inorganic opportunities.

Focused on Balance Sheet Teva Pharma’s acquired Strong capabilities and

disciplined growth: net debt manufacturing unit will be a experience to capture a
negative balance sheet for last backbone to achieve the significant part of the multi-
five years. desired topline growth billion-dollar OTC opportunity

Preferred Store Brand Partner for Significant Balance Sheet Backward Integration will be a
Traditional Retailers strength (over Rs 636 cr. as of backbone to achieve the desired
30th June 2023) goal of Margin Expansion

26
ESG
 ESG
Provided Covid-19 Provided Covid-19 related, antibody testing, and other medical requirements like
Relief Supplies medicines , sanitizers, masks, gloves and PPE kits to the frontline workers in Goa

Free Food To Needed Joined hands with NGO’s to serving meals, ration, grocery kits for migrant families in
People villages in Goa

Medical treatment to under privileged society suffering from cancer and other blood
Promoting Healthcare
disorders in Maharashtra

Overall Wellbeing Of Women and children development, professionalizing Anganwadis and national nutrition
Women And Children mission in Goa with Ministry of Health, Government of Goa

Tree Plantation Tree plantation in Verna Industrial Estate, Goa

Oxygen Concentrator Tree plantation in Verna Industrial Estate, Goa

Women And Child Provided Sanitary Pads to poor women under the “MY PAD, MY RIGHT” program, an
Development initiative of Swatch Bharat scheme of Beti Bachao scheme of the Govt of India

28
 Thank you
For more information please contact:
Jitendra Sharma Corporate Office
(CFO) 11th Floor Grandeur, Off Veera Desai Road,
Opp Gundecha Symphony, Andheri (W),
Marksans Pharma Ltd
Mumbai – 400 053, Maharashtra - India
Tel: +91 022 40012000
[email protected]

© 2020 Marksans Pharma Limited, All Rights Reserved.

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