Glenmark Pharmaceuticals : Investor Day 2024

Mr. Utkarsh: Good evening, everyone, thank you. Thank you for joining us today here in-person and quite a few of you have joined us virtually, as well. I am Utkarsh. I lead the investor relations at Glenmark Pharmaceuticals Limited. And on behalf of the management, I welcome you all to the 2024 Investor Day. It gives me great pleasure to meeting you again after a couple of years since we last did our last Investor Day in November '22. I think, as we mentioned in our recent interactions, the last year has been a transitionary year for the company, and today the management is here to provide a more detailed outlook on the future and some key priorities for the organization as we move forward. There will be an opportunity to interact with the management team during the Q&A session, which is followed following the completion of the presentation. So participants who are joining us virtually, please ask your questions through the question box or the chat box. A quick and kind request to everybody present here in the room, please keep your cell phones and all other devices on silent mode so that it does not disturb the presenters. Before we start, just a reminder that the document and discussion today will comprise of certain forward looking statements which will concern the company's plans, objectives, strategies. These are obviously based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, and actual outcomes may vary. So the document should not be regarded as a substitute for the receiver's judgment. Just a disclaimer before we start. In terms of our agenda today, so we have from our management team, Glenn Saldanha, Chairman and Managing Director. Glenn will cover Glenmark's journey up until today and the strategic outlook for the future for the organization. Christoph Stoller, he heads our Europe and Emerging Markets Business. He will cover all 4 key geographic regions of Glenmark in more detail including our current presence and our future growth drivers. Cyril Konto is president and CEO of Ichnos Glenmark Innovation or IGI. He'll walk us through our pipeline on the innovative assets and our roadmap for IGI. And V. S. Mani is Executive Director and Global CFO. He'll take us through the various measures the company has taken to strengthen, the balance sheet, to strengthen the organization and some long term targets for the company. As mentioned before, post the presentation we'll have a Q&A session. So the 4 speakers will be joined by Ashish Mukkirwar, Group Vice President and Head of Corporate Strategy for the Q&A session, as well. With this, I would like to invite Glenn Saldana, Chairman and Managing Director on the stage to start the presentation.

Mr. Glenn: Good evening, friends, and welcome to the Glenmark Investor Day presentation. So I want to start by saying, you know, our vision for Glenmark has always been to be a leading, research-based global pharmaceutical organization. If you look at where we are today, we're about one-and-a-half billion dollars in revenues. We have 10 manufacturing facilities, about 60% of our contribution comes from our branded markets. 80 countries, so very broad global presence, footprint in many countries, 4 research facilities, and we are focused on 3 therapeutic areas globally. So we work in dermatology, respiratory, and oncology. In India, we also have cardiovascular, which is a big segment, and diabetes, but our global presence is in these 3 therapeutic areas. We are unique in that. We've we have over 300 million dollars that we've earned in out-licensing income through our NMEs. And today we have 4 innovative clinical assets in development, mainly under IGI, which Cyril will cover. About 15,000 employees worldwide. So that's the footprint, today. If you look at Glenmark, you know. So I've been running Glenmark now 25 years, right, and the last 5-6 years was super challenging for us, because we got hit with 4 or 5 different areas, right. The first was, you know, the slowdown in the US generics business. Clearly, the US generics over the last 5-6 years, was very challenging, and continues to remain a challenging environment. Glenmark's approach to working around that was to enhance our branded capabilities and and strengthen our branded business, which we did pretty successfully. We launched

RYALTRIS, which is our first global branded product, which today is a very strong brand for Glenmark and growing from strength-to-strength every year. And we initiated some in-licensing activities of branded products to move up the value chain. The second area which adversely impacted us over the last 5-6 years was the whole US FDA, adverse audits that we faced in some of our sites, right. Today, we've pretty much done with all the remediation work in both Monroe and Goa. And we're waiting for the FDA to come and reinspect. Also, we've, you know, over the last couple of years, we've totally overhauled our entire quality organizations, invested heavily in building systems through the strengthen management oversight. So that's a big area which we've addressed. And I think going forward we should come out stronger. The 3rd area which hit us pretty badly was, you know, we were spending a lot of money on innovation. Clearly, we are the poster child of innovation in India, you know, with over 300 million dollars of revenues that we've earned over the years, you know, throughout licensing our own intellectual property. But I think, you know, at one point we were spending almost up to a 120 million dollars in innovation which was way beyond the size of the company. So what we've done today is we've scaled it back. Now our innovative spend this year is down to about 50 million dollars right. So we've pruned some of our programs, been much more judicious, and we've done some great partnership deals. So we have 2 partnership deals which Cyril will talk about. But that's the, that's the other area we've addressed. Then on the litigation side, as you know, in the last 5 years, we faced 2 or 3 big litigations. Primarily, Zetia was a big one - the DOJ litigations. So on that front we've actually done a good job in settling many of these, and I think going forward we have very little exposure on the litigation side. And then of course the last point is the high leverage that we were carrying in a very high interest rate environment as an organization. I mean, today, you know, we've substantially delivered the balance sheet and we are net cash positive as of March. So these are some of the challenges we faced as an organization if you just look back over the last 5-6 years. And today, we've overcome, I would say, all these 5-6 challenges as a firm, right. And we are well poised to to propel the firm forward from here on. Glenmark's goal as an organization is to continuously move up the value chain, right. And we've been working on this for years for for decades now, right, as an organization. And if you look at the 3 therapeutic areas that we work in, so dermatology, respiratory, and oncology on the branded side, we made substantial progress in these three areas. So, in dermatology, as most of you are aware, we are among the leaders in India. We recently in-licensed Pfizer's product abrocitinib, and we are commercializing that in the derm space. We also did a great, deal in Europe with in-licensing our product called Winlevy. Sun Pharma has the US rights. We have the European rights. So Europe, UK, South Africa, these are some of the areas. All this is helping us strengthen our derma franchise, not just in India, but, in in most parts of the world, right. So given the the significant strengths that we have in dermatology. So the goal, of course, is to continue to build on these therapeutic areas. The second area is respiratory. In the respiratory space, you know, we are ranked now number 2 in India. In the respiratory space, we're also number 2 in the Russian market with Ascoril as being among the leaders there. And then, of course, with the launch of RYALTRIS which has been transformational, right, we filed this in over 80 countries…we have 34 markets globally where we have a presence. To add to that, you know, which we recently filed, you know, we have almost 4 products in Europe commercially on the branded respiratory side and we continue to expand in the respiratory area, right, as a company, globally. And then the last segment is oncology. In oncology, you know, if you see most of our business was mainly in generic oncology, cytotoxic drugs, you know, with the launch of Akynzeo in India. That was our first branded product in India. And now we've gone on to in-license a few more products. So we in-licensed a product called envafolimab, which is a PD L1. The unique thing about envafolimab is it's a subcutaneous

injection. The only PD 1, PD L1 in that space with with a subQ injection. Almost a 4 billion dollar market in India, and emerging markets. So a very large market and the the leader of in that space, immuno oncology particularly is, which is a very large product, among the largest products in the industry. So envafolimab will be a big competitive advantage for us in India and emerging markets. We also did a deal with Beijing recently. Beijing is among the the leading Chinese players with strong presence in in most parts of the world, including US and Europe, where we, in-license 2 of their products for the Indian market, where we have the exclusive rights. And then, of course, with IGI, right, the strength that we've built in IGI, the capabilities, the the technology, the the BEAT platform, you know, gives us a very strong footprint in the oncology space. And IGI, you know, has 2 very exciting assets which Cyril will talk about, right. Which we think eventually can get commercialized as we go forward. So these are the 3 areas where we're very focused on continuing our efforts, right, and building as we go forward. The 4th pillar for us is the generic space. As you know, the US generics market has been extremely challenging for everyone. And we believe will continue to remain challenging. Here our our strategy as an organization is basically to focus on leveraging our respiratory capabilities that we've built over decades, you know, across the world. And, you know, we launch we believe we launch our first two nasal sprays this year in the US market. And, of course, we filed generic flovent, right, the 44 MCG, and we have the other strengths we are working on, which, we believe we have a very exclusive position on that particular product. So respiratory is a big area. And then, of course, injectables, you know, we have 5 or 6 injectables on the market we're launching. Once we are hoping Monroe will get back on stream and we will start commercializing some of the other injectables. So that's the other big lever for growth for the US. And then we have some complex generics and some FTFs which have been settled and which are slated for launch as we go forward. So these are the different levers that we have as an organization, you know, by which we are moving up the value chain and continuing to add value if I look at, you know, the global brand so far. Right, so we have 3 brands that we classify as global brands, right, the first is, of course, RYALTRIS. So RYALTRIS, we think, you know, it's about 40-50 million dollars in in last year. We think that this year could be 80 plus million dollars in revenues. And this will go on to become a major brand for us, right, over the next 2-3 years. So it's, it's scaling up pretty nicely as we go forward. envafolimab, is the oncology product we just talked about, so we start launching in FY26. And Winlevi is the product we, clascoterone, which we are launching in Europe, South Africa and the UK, right. We think total estimated sales for our branded portfolio alone will be 300-400 million dollars over the next 5 years, if not more, right. That's a key platform that that that we are, expanding as we go forward. So just to see show you the transition, right, FY19 - 55% of our business was branded. FY24 - 60. We think it'll go up to 70-75 percent in by FY29, and this is despite having some great launches on the generic side and despite the respiratory build out the injectable build out on the on the generic side which should help, starting this year propel the business forward. So the branded presence will will go up significantly. So this is, what I call as Glenmark 2.0, right, I mean, if you see historically as a company, we've, you know, we've always been a high growth company, right, and that's what's got us to the one-and-a-half billion dollars as an organization. However, you know, we had a lower focus on return on capital employed and our overall margins. And and, of course, we built up a lot of leverage, right, in the Glenmark 2.0 era, right, the way we see the company going forward, right, basically there are 4 pillars for us, right, as an organization, going forward. So the first is focus on revenue growth. We will continue to be a high growth company, right, and you will see some of the projections, right, you will continue to see strong growth from Glenmark. However, you know, we will continue to drive capital allocation basis ROCE, right, so you know, we are very focused on return on capital employed for every investment that

we'll make going forward. The second area for us which is important is to further improve our operating efficiencies and to drive continuous margin improvements, right, you know, our move into the branded space, right, will will give us a big lever in terms of margin improvements as you go forward. Clearly, RYALTRIS will be a significant contributor to the margins as we go forward. But even with even despite RYALTRIS there are certain geographies like Latin America and and Europe till last year, right, which were under the company average. Those now will continue to accelerate. So, you will see substantial improvement in the overall GCs and margins as you go forward, right, over the next 3 to 5 years. The third point, is important. It's a big change and shift in mindset at Glenmark. So stay debt averse, right, and we will make sure that whatever we will remain free cash positive net of post any Capex dividend and M&A that we do, right, we will continue to stay free cash positive from here on. So we will not leverage up again going forward. And the 4th area is, you know, drive shareholder wealth creation, right, by increasing our payout ratios now, you know, historically our payout ratios have been very low. But our goal is from FY26, right, we will increase our our payout ratios, why we are dividend and or share buybacks, right, so these are the 4 areas we've said we're gonna concentrate on as a company going forward. And you'll see through the rest of the presentation that, you know, the growth trajectory is significant and, you know, the the runway is pretty significant as a company as we go forward. So with this, I'd invite Christoph Stoller who Heads Europe and Emerging Markets to to present our entire global formulations business, for all the geographies. Christoph.

Mr. Christoph: Ladies and gentlemen, good afternoon. A very warm welcome from my side, as well. It's a great pleasure to be with you here this afternoon. Glenmark has a true global commercial footprint. We have a diversified business from a portfolio point of view, generics, OTC, novel branded molecules, and from a geographical point of view. Therefore, we have a very robust and derisked business. As laid out by our chairman earlier on, Glenmark's core therapeutic areas are respiratory, dermatology, and oncology. In our Indian market, we focus, in addition, on cardiac and diabetes. In our more tender driven markets, such as some European countries or the US, for instance, we are more therapeutic area agnostic and focus more on dosage forms such as oral solids, injectables, and devices. In India, our largest market, we have consistently and continuously outgrown competition in recent years. Glenmark is one of the fastest growing companies in India, which represents 31% of our global net revenues. One of our key levers is there that we have been able to build very strong brands. Emerging markets and Europe are growth engines for Glenmark as well. In the last 2 years, we have been able to grow our business in Europe by 50%. In the US, as mentioned earlier by our chairman, we have seen some significant challenges in recent years. We are convinced that we have hit the bottom and that things will only be better going forward. As mentioned earlier on, Glenmark is one of the fastest growing companies in the Indian pharmaceutical market. We have continuously and sustainably been able to outgrow competition. This is being reflected in our ranking in the various therapeutic areas. We are number 2 in dermatology. We have improved our ranking to being number 2 in respiratory and number 3 in cardiac. Glenmark is well known for creating mega brands. We have now brands, 9 brands, in India's pharmaceutical market in the top 300. 9 brands have a turnover of more than 1 billion rupees and 15, a turnover above 500 billion rupees. Launch excellence is one of our key strategic levers and growth drivers. Roughly, 4 to 5 percent of our growth is coming from new product launches. For instance, Glenmark has been the first company in India to introduce Lirafit. Lirafit is indicated for type 2 diabetes. The launch is a success. We see, months on months, higher sales. Another example of being first is Zeta

DM, a triple dark fixed dose combination in the area of diabetes 2 as well. In line with our global strategy to move up the value chain, we focus as well to in license novel therapies for the benefit of patients in India. Last week, we announced in licensing of Tevimbra and Brukinsa in the field of oncology from Beijing. Another example is in license for India and the emerging markets. In addition, we keep adapting our go to market model. In our OTC, DTC franchise, we have been able to increase our sales fivefold to 3 billion rupees most recently. In line with our strategy, we will continue to grow our core areas to manage our current brands and to build new strong mega brands. Furthermore, we keep extending our geographical footprint in India. We will add 500 sales representatives in India alone in this current fiscal year. We will continue to excel in launch management and we will keep adding novel medicines, also through way of in licensing. As mentioned earlier, we're also very successful with our OTC, DTC franchise, and we will continue to focus on that area and exploring new alternate channels. Glenmark has a real global commercial footprint. We are active in many high potential emerging markets in Latin America, Asia Pacific, Russia, CIS, and Middle East and Africa. The overall market growth opportunity in these markets is huge. Please allow me to call out a few highlights across these emerging markets. Glenmark is the 2nd largest Indian pharma company in Russia. We are the number 2 expectorant market in Russia and number 9 in the dermatology market. As in India and all our emerging markets, we have been able to build very strong brands such as Ryaltris, Ascoril, and Candibiotic. In Latin America, we have businesses in Brazil and Mexico and many more countries, but Brazil and Mexico, which are key in Latin America as they account for more than 50% of the overall Latin American pharmaceutical market. We are amongst the top 10 respiratory, in our covered market in these countries and we have very ambitious growth plans in this year and in the years to come to strengthen our market position in these countries. In Middle East and Africa, we have both our own presence in key markets, such as being the number 3 player in Kenya and strong partnerships with distributors in other markets, as we speak, we are strengthening our positioning our position and are expanding in Saudi Arabia. Our key markets in Asia Pacific are Malaysia, Philippines and Vietnam. We are the number 1 in our covered market in dermatology and we have been able to build realtressvery successfully in Asia Pacific as well. The launch of Envafolimab, the new biological entity, will strengthen our market position further going forward. We plan to grow our business in the years to come with a CAGR, a compound annual growth rate, of 15 to 20 percent. We will use the following strategic levers to achieve these growth targets. We have a very strong foundation, our commercial infrastructure in these territories. We will use that foundation to continue to increase market shares, for instance, for one of our key brands, Ryaltris, and to launch novel molecules such as Envafolimab successfully. In line with our strategy, to move up the value chain, this will allow us to increase profitability further. We will expand our geographical footprint selectively and we will continue to expand our product offering. As laid out when discussing our Indian market, we will as well add novel therapies to our pipeline and portfolio. And, of course, it goes without saying, in a growth company, launch excellence remains a key value driver for us. And last but not least, we will continue to build local partnerships in order to grow our business sustainably and in order to enhance our offering. Europe has been the fastest growing region of Denmark. As mentioned earlier, we have been able to outgrow competition and to grow our business in Europe by more than 50% in 2 years, while increasing profitability significantly. We have our own presence in key markets, such as the UK, Germany, Spain, Italy, and we work with key market leaders in select markets in which we are not present ourselves, such as, for instance, France, where we do, in these markets, we use the model of out licensing. Again, in line with our strategy to move up the value chain, we have been able to strengthen our non-generic business segments. We have increased the share of our branded business by 10

percentage points in 5 years to, today, a level of 30%. This share will keep going up as we add novel therapies to our pipeline and our portfolio. As we have demonstrated in the last 2 years, we have a great foundation. By adding more branded products, more novel therapies, we will be able to benefit from that infrastructure even further and this will lead to increased profitability. A key driver of our growth has been in the past and will continue to be our respiratory franchise. We will launch 4 key brands in the coming 12 to 18 months. We are very happy with the success of one of our key brands, Ryaltris, indicated for allergic rhinitis. In Czech Republic, to quote just one example, for instance, we have a market share of today 25%, and we are very happy with our market shares in Poland as well and in Slovakia, which is the most recent country in which we have launched that brand. And last but not least, we will expand our geographical footprint further. We have recently entered the Italian market and just a few months ago, we have started operations in Austria. This will also support our intention to increase profitability further, albeit changing our geographical footprint in Europe. In a nutshell, summarizing what I just mentioned, we will continue to grow our core business and to excel with launches. While respiratory remains a core therapeutic area, we will add novel molecules, such as Winlevy, plus catering to indication for acne, the first NCE new chemical entity launch in the history of Glenmark in Europe. Winlevi will be the cornerstone of our dermatology franchise in Europe, which will be a key growth driver for us. We have a clearly defined plan how to expand our geographical footprint in Europe, and, as just mentioned, we keep executing that plan, most recently our expansion into Austria. We have a very strong agile team in Europe which will continue to identify opportunities and to execute these opportunities. All of this put together will allow us to continue to outgrow competition and to increase profitability further, in line with our global strategy to move up the value chain. As mentioned earlier, we have seen challenges in our US business in the most recent time, which has led to a decline of our top line over the last 5 years. The key reasons being competition and price erosion, a lack of meaningful product launches, and the FDA audits. We are convinced that we have now achieved the inflection point and that the situation will improve going forward, meaning that we will return back to growth. We have a very diversified portfolio. Our top 5 products in the US account for only 25% of our revenue in that country. Glenmark has been able to maintain leadership positions in key products. In 27% of our portfolio, we are ranked number 2. Excuse me. In 27% of our portfolio, we are ranked number 1, and we are ranked number 2 in 33% of our portfolio. Our recent approvals and our pipeline, we have filed 47 products and have received approval for 51 products in the last 5 years. And we have launched 57 products. That number includes 6 in licensed products. We have worked very hard and focused to continuously and rigorously work on quality improvements. The remediation at both our Monroe and our Goa sites have completed. We have engaged to resolve the warning letters at the earliest. Last but not least, 2 days ago, Marc Kikuchi has joined Glenmark as President, North America, another milestone to strengthen our position in our US market. The key driver to be back on the growth path in the US are our differentiated launches. We will continue to strengthen our injectable portfolio. Today, we offer 6, 7 molecules. By fiscal year 26, we will have a portfolio of 15 molecules, which includes 4, 5 coming from our Monroe site. In respiratory, we have already launched 2 nasal sprays. By adding more files, we are building a very solid respiratory portfolio with nasal sprays and MDIs. Complex generics and approved, settled first two files will be 2 other key pillars of our growth strategy. We have

3 first two file products in our pipeline. Due to confidentiality reasons, I'm not in a position to call these out. And last but not least, OTC and our institutional business will further support our growth ambition as well as our Canadian business, where we intend to continue to grow our market share. Thank you

very much for your attention. And with that, I would like to ask Cyril, President and CEO of IGI, to join me on stage. Thank you.

Mr. Cyril: Ladies and gentlemen, it's a pleasure to be back and present the progress made towards the last update 18 months ago. My name is Cyril. I'm the president and chief executive officer of ICHNOS Glenmark Innovation. So we launched, IGI, in January to combine forces from ICHNOS Sciences Incorporation and, Glenmark, the innovation medicine unit. With that, we achieved a robust pipeline combining biologics. And you may remember, last time I presented the BID platform, a protein platform for building new molecules, multispecific molecules. And now we're also integrating small molecules out of the Mahape, Glenmark Research Centre. And this will enable developing drugs in both heme malignancies and solid tumors. We are leveraging experts from different parts of the world. Our clinical development group is located in New York, led by Lida Pacaud. We have biologics capability, including pharmacology and protein engineering in Lausanne, Switzerland. And now have a small molecule research capabilities in Mumbai. We're also leveraging landmark footprint in India. We have both our lead asset, ISB 1442 and ISB 2001, approved by the DCGI in India, so that we can increase speed of patient recruitment and, at the same time, leverage cost efficiencies. I'm glad to report that we treated our first patient with ISB one 442 in India yesterday. Lastly, when I joined here, Ichnos Sciences was burning a lot of cash. Glenn mentioned a 120,000,000. We've been cost efficient to a point that we expect to spend $50,000,000 in fiscal year 25, while we continue to grow the portfolio. Few words in our portfolio, made of, a diversity of immune cell engagers and now a small molecule across different type of cancer indication. I'll start with ISB 2,001. This is our award renowned, tri specific, BCMA, CD38, CD3, t zone engager that we are developing in the Relapsed/Refractory Multiple Myeloma setting. When phase 1 with this asset, it has received orphan drug designation by the FDA, and we expect to disclose proof of concept clinical data at the American Society of Hematology annual meeting later this year. ISB 1442 is an innovative drug. Again, multispecific with 2 CD38 Biparatopic binders and 1 CD47 binder, engaging myeloid cells. We're developing this asset in multiple myeloma, with plans to, initiate clinical trials in AML later on. The the key differentiating factor of this asset is the fact that it engaged myeloid cells in a crowd of t cell engagers. So it's different, subset of immune cells, which could translate into a competitive advantage. Again, this drug has received orphan drug designation by the FDA. We are now embarking in small molecule coming from the Glenmark Innovation pipeline. And I'm glad to report that the CBLB inhibitor, or GRC 65327, is expected to treat its 1st patient in early 2025, with a DCGI submission scheduled later this year. This will be our first asset with the solid tumor pen solid tumor indications. You may remember last last time I came here, I reported a recent deal with Almirall Therapeutics, a Spanish pharmaceutical company, and our ISB 880 asset. I'm glad to report the progress of our alliance partner with this anti IL-one Rap monoclonal antibody in inflammatory disease. We also, in the meanwhile, licensed our telazorlimab phase 2b asset and its follow on molecule, ISB 830x8, to Astraea Therapeutics. And they have the plan to file the IND for the follow on molecule with their YTE modified version before the end of this year. This is very important for us because those are the intellectual property revenues Glenn mentioned earlier, with, I'd say, world class, type of, out licensing deal. And lastly, I wanna leave you with our roadmap. It's a simple simplified roadmap, to highlight the key information. We formed IGI as part of our cost efficiency model. We will deliver clinical proof of concept with ISB 2,001 and or ISB 1442 this year. At the same time, we have expanded our bid platforms the protein platforms that Ichnos Science fully own. With that, in parallel, we're also expecting to divest

our manufacturing plan to remain even further cost efficient. We will, on the basis of all these elements, set a partnership with, one of our lead assets, at least, in fiscal year 26. All combined, plus the recovery of the biotech market in the US, we shall expect to go to, the Nasdaq for a capital raise in fiscal year 27. Thank you for your attention. I'm now, welcoming on stage, V. S. Mani, our executive director and global chief financial for Glenmark Pharmaceutical.

Mr. Mani: Good evening, everybody. Welcome to Glenmark Investor Day. I'm V. S. Mani. So Glenn had earlier articulated our transition through various uncertainties and all the mitigation measures that we took to emerge stronger. One of the key objectives in the past 5 years has been to derisk the business. And we took a number of measures to derisk the business and the critical ones are, you know, I would like to sort of list out. One is obviously you all are aware that the US benchmark interest rates in the last 2 years went from half a percent to almost 5 and a half percent. So therefore it was imperative for us to kind of reduce our gross debt which we could do very substantially. 2nd was also on the substantial progress in closing of key US litigations. And obviously, we had cases for Zetia, one of our products, as well as some of the cases, the DOJ. I think we have managed to settle some of these cases and obviously de risks substantially. This is very critical in terms of the operational efficiency. And you know that, if you want to improve your EBITDA etcetera, I need to do a lot of work on the GNA side which includes R&D as well. As you can see, our other expenses over the last couple of years have come down. And that's due to the continuous focus on the operational efficiencies. And last but not the least, we have done a lot of work in terms of and you'll see in the next couple of slides in terms of the work that we've done on the Capex as well as the r and d allocation. I mean, all this is, probably obviously helps us to improve our ROCs and minimize the risk. Okay. Over the last 5 years, we have taken a number of initiatives to actually strengthen the balance sheet, which is very important. Okay. And, I would like to bucket these initiatives into 3 slots. Okay. 1 is obviously the SG and a operational excellence program that has really helped us to shore up our margins much better in a very, challenging environment. 2nd is obviously we did, sort of, divest some of our non-core portfolios. And third was we actually spun out 2 of our divisions. 1 was API into Glenmark Life Sciences and the innovation into basically Ichnos. And at a very opportune time we could actually list Glenmark Life Sciences. And now we could actually find a strategic buyer as, it was already explained that we are now looking more at a branded business. So it made a lot of sense. And it absolutely helped us to deliver a balance sheet. Also now with IGI, we are looking at sort of being more, rationalizing or optimizing our further R&D spends. All this will help us. What you can see is that because of this, our, net debt to EBITDA has improved substantially. We used to be about higher than 2 times in 19. Now we are a net cash positive company. Okay. That made a lot of makes a lot of difference. Also, if you can see over the last 5 years, the rating agencies have also upgraded us, across the board. Okay. Thank you. This slide will critically show you how we have managed to sort of optimize our r and d investments and rightsizing the capex. In 19, our r and d spend was almost 13.2%. And we were at almost 12,980,000,000 rupees. So it's really substantial. And now we're looking at something like a 7 to 7 and a quarter in the coming year. So this brings down it substantially. And as earlier Cyril had pointed out our innovation spend would be about 50,000,000 And, as far as the capex goes again in 19 we were at almost 12,372 1,000,000 rupees. And now we are talking about, 7,000,000 rupees. And this has been the ballpark in which we have been spending our capexe in last 3 to 4 years. So I think these are achievable numbers. Okay. So what does all this do? Okay. So in a way if you really look at it, our estimated earnings and also obviously the kind of balance sheet that we have today, if you take put it all together, you can see that our ROCs and our ROEs are, better than, on an on an average basis. If you look at it compared to the peer average, we are definitely will look better. In terms of our ROCEs,

we'll we're looking at almost 19%. And in terms of the ROEs, we're looking at almost 15%. I think both this should help us, you know, very important. So this is a very, critical slide as far as I look at it. So in number of 22, we met you all and we gave you guidance on 7 key metrices. And I would like to now show you what we had guided in 17, in in a number of 22 and where are we today. Okay. So in terms of revenue growth etcetera, we have spoken about 10 to 12 percent growth over the next 3 to 4 years. Today we are saying in FY 25 we'll be at about one lakh 35,000,000 or 1 lakh 40,000,000 depending on how growth happens. R&D expenses we are guided to about 8 and a half to 9% from FY 24. And we're now talking about 7 to 7.25% in the next year. And the EBITDA margin we said would be 23% by FY 27. And now we are saying that coming year will be 19, and we are expecting to improve it by 1 to 2% over each year. And obviously as we had already articulated earlier that we have a number of products that are going to come up in the market. We the ultra is growing or the number of other branded products that will come. So obviously growth will fuel this improvement in the EBITDA margins. And obviously rightsizing some of our expenses will also help us to reach there. Okay. In terms of capex, we have guided to about 7,000,000 over the next 4 years and we pretty much were there most of the times give and take some small changes. We had said that would be a 0 debt company net debt by 26. Be happy to say that we are net cash positive at the end of this year. ROCE we had guided to about 23% in, FY 27. And we are pretty much on track there. Okay. As you can already see, it's very easy. And on terms of the payout ratio we said that we'll evaluate you know enhancing dividend payout ratio buyback over the next 4 to 5 years. What we would like say is that we're looking at a 15 to 20% minimum payout from FY

26. And this would be via dividend or share buyback. Earlier, Glenn had spoken about Glenmark 2.0 and the evolving ideologies. What I would like to bring out here is that how the long term targets are now very aligned with the evolving ideologies. So one was focus on revenue growth and continue to drive capital allocation basis, ROC. So obviously, with the, 12 to 15% revenue growth on CAGR and the focus so much on the in terms of the ROC. I think in terms of the capital investment of water, I think we should see it growing further. We are looking to generate further operating efficiencies to drive continuous margin improvement. We are looking at a long term of 7 to 7 and a half percent in terms of our R&D spends. And obviously we already guided to about 19% in the next year in terms of EBITDA and a further improvement each year by 1 to 2 percent. This is important. Stay averse to debt and remain free cash positive post any dividend, capex, and many etcetera. Obviously there'll be a 7,000,000 spend on capex which is very important in terms of looking at the growth and what we are ambitions that we have. But we will look to drive further improvement in ROE and ROC in the next 4 years. And and the most important, we would like to drive shareholder wealth creation, 15 to 20 percent payout over the next few years. With that, thank you very much. We'll now be ready.

Mr. Utkarsh: Thank you to all the presenters in the management team. So I would request Glenn, Mani, Cyril, Kristoff, and Ashish to come on the stage so that we can start with the Q&A session. As mentioned, our participants joining virtually can also ask questions through the chat box or the question box, on the webcast or on the Zoom link. We'll first give the opportunity to the people present in the room. Anybody has a question? I think we have a few people who can, help you with the mics. So I have a few questions coming virtually. So let's start with those. So one question is on the capex guidance. So while we have said that 700 crores is the guidance in terms of future capex, How do you see this in terms of fixed asset addition and and, and any licensing that we do? Are we planning to add any more, new manufacturing sites? Or, where is the fixed asset edition specifically, focused on?

Mr. Glenn: Well, clearly, I think, you know, given our rollout. Right? And and the 15 12 to 15% top line growth CAGR. Right? I think it'll be important for us to invest in, capex, particularly in terms of building our manufacturing capabilities and capacities mainly on the respiratory area, as a big driver for the company going forward. Additionally, I think in licensing is something we will continue doing. We did envafolimab, recently, which will commercialize in f 26. We'll continue to look for novel assets which can further help, you know, accelerate our our vision to be a branded company while remaining disciplined in terms of the overall Capex. Right? And, so that we don't impact the overall return ratios and and, the other parameters.

Mr. Utkarsh: So we have another question on IGI. So maybe you and Cyril can both chip in. So question is, so in there are 2 parts basically. 1 is, in terms of the pipeline, what's the most exciting asset that, that you are looking forward to? And, maybe Glenn, you can address this. So, how are we looking at investments into YGI beyond f 25? So obviously, there is a roadmap, but, how are we looking at the investments and what's your take on that?

Mr. Cyril: In term of excitement, they're all my babies, and they are only, sourced from our proprietary multi specific platform. I said based on the clinical data available and the recent approval of t cell engagers, we know the t cell engager works. And, and ISB 2,001 being our leading t cell engager and targeting 2, myeloma, targets, is is by default my favorite asset. That being said, I also believe that there is so many t cell engager we need something else than a drug that engages the t cells because they they're gonna be exhausted in those patients. So if we can demonstrate the the value of a myeloid cell engager or in down in our pipeline and a NK cell engager against solid tumor, that would be also a great, competitive advantage. I think this is also the the overall strategy we're building in IGI. We're leveraging different type of immune cells against heme malignancies and select tumors. Now with regards to further funding, I will turn to the chairman.

Mr. Glenn: So I think, look, we've said that, you know, we will be at $50,000,000 this year. Next year, you know, the path forward is we will I don't see us crossing 50,000,000. We will get additional revenues coming out of partnerships. And subsequently, we are looking at a capital raise. So we believe that, form of funding perspective, there's a strong possibility from FY 26, Ichnos will self fund itself, right, going forward. So that's the journey forward, from a funding perspective that we are hoping to achieve. Right? As we go forward.

Audience: Hi. Good evening all. So my question is slightly backward looking. You sold off GLS. How did you arrive at this decision? Now that you also had an output I mean, you also could have contemplated shutting down the US business or selling it out at whatever 1.2 times, sales, whatever the valuation you would have bought. Because it seemed that you are sold off a business which was cash generating, higher margin to kind of keep on funding a business which is structurally challenged. So and and did you take the help of any external advisors? Any consultants were engaged? Who kind of recommended this kind of a strategy? So slightly backward looking question because, it's important to understand, how the decision making will happen in the coming years.

Mr. Glenn: I think the the GLS asset, decision was purely based on the fact that, you know, if you go back in time. Right? We entered the API space. Right? Back in 2,005. Primarily with a vision that we would be a vertically integrated company with the lowest cost structure in the generics business. Right? Thinking