GROWTH THROUGH

EFFICIENCY

Investor presentationSeptember 2019

2

CORPORATE OVERVIEW

OUR CAPABILITIES

EXPANSION PLANS

FINANCIAL HIGHLIGHTS

What’sInside

3

4

Evolution on an experienced foundation

5

•Strategic recourse to focus on mature APIs offering

supply chain security for the regulated markets

•Organic growth with over 80% regulated market

business along with profit sharing partnerships

•Demerged Human API business from SeQuent to

operate as Pure Play animal healthcare company

•Leadership position in key API’s with scale of

manufacturing from Low Volume to Mid to High

Volume

• Investments across the facilities to focus on quality

and EHS

•Expansion across the regulated markets with key

approvals and compliance record

•Demerged the select API business of Strides Shasun

to integrate with human API business of SeQuent

Demonstrated operational excellence over 2 decades

Why a shift towards standalone API setup?

6

While the opportunity is growing, it needs a focused play

Supply chain

discontinuance

• Regulatory requirements are

tightening and will likely continue to

do so with a push for more

transparency in the supply chain.

This could result in requiring

certification for good manufacturing

practices for key intermediates and

raw materials*

USFDA’s increasing

oversight on APIs

• FDA’s increased oversight on

resulting in 483s, warning

letters and import alerts

Increasing Pollution and

Environmental Concerns IP conflicts and

competing interests

• Forward integration interest

of majority API players has

led to concerns around

potential competition with

international customers along

with issues around IP

security and conflict

• Governments’ increasing focus on pollution

controls and zero liquid discharge

• Environmental regulations, especially in China,

are putting pressure on corporations to remedy

pollution problems. Some plants are being shut

down or moved, causing capacity issues and

supply chain interruptions from raw materials to

intermediates and APIs.

Highlights

7

Pipeline of 20+

products under

different stages of

development

Research

Presence in 75+

countries,75%+ regulated

market sales and 100+

Filings

Market Presence

5 Globally compliant API and

diversified facilities with

capacity over 1600kl

Infrastructure

Commitment to highest

levels of compliance,

consistency and quality

with zero 483s in last 2

USFDA audits

Compliance

Consciously favoring value

over volumes thereby

limiting pricing pressure in

the long term and creating

capacities after assuring

demand

Orientation

Complex chemistry capabilities including

handling of catalytic hydrogenation,

hydride reductions, organometallic

reactions, hazardous reactions amongst

others

Capabilities

API business model with large scale infrastructure, wide products and established customer relationships

Solara Business at a glance

YEARS OF EXPERIENCE

CAPABILITIES

MANUFACTURING

EMPLOYEES

R&D CENTRES

SCIENTISTS

30+ years of experience in research based API and intermediate development

Offers Contract Research and Manufacturing and Development Services across the entire value chain of a new chemical entity which covers from Discovery to Commercial Phase.

5 globally compliant manufacturing facilities with 1,600KL capacity and capabilities in high vacuum distillation, hydrogenation, halogenation, Grignard reaction, polymer chemistry amongst others

2,500+ people across multiple locations embracing our culture of integrity, and transparency

Two state of the R&D centres with new and better technologies at competitive cost

200+ scientists with strong technical leadership to develop high-quality services that create strategic value for our partners and customers

8

Doing what is “RITE” for the customers

RESPECTWe at Solara respect our Employees, Customers and Partners. Here we ensure that our client’s expectations are consistently met

TRANSPARENCYRegularly engage with investors, suppliers, customers, and stakeholders by providing regular financial and business updates.

INTEGRITYOur business stands on the pillar of integrity, honesty and fairness. Everything we do here stands the test of public scrutiny

EFFICIENCYWorking towards achieving a high level of efficiency in all process and systems and fulfilling the promises made to stakeholders.

9

Brief Profile of the Board of Directors

10

Deepak Vaidya

Dr. Kausalya Santhanam

Non-Exec. Director & Chairman

Independent Director

Nirmal BhogilalIndependent Director

Independent Director

Fellow member of the ICA in

England and Wales. He has

previously worked as the Country

Head of Schroder Capital Partners

(Asia) Pte. Ltd. for over 12 years.

He is experienced in the corporate

financial services industry in India

and abroad.

Founder of SciVista, she is a

Patent attorney registered with

IPO as well as the US PTO.

She has a Ph.D in Cell biology

and Immunology and her Post

Doctoral training was in Cancer

Biology at Center for Cellular

and Molecular Biology

He is a practicing Chartered Accountant

and a Management Consultant at

Bangalore having an experience of 36

years in Direct tax matters, Audit and

Assurances. He was nominated by

KSIIDC for few listed Companies and

currently holds directorships in reputed

companies

Chairman of the Batliboi Group.

He was Past President and

Committee Member of the Indian

Machine Tool Manufacturers

Association. He has been

Chairman of various committees

in CII and its Western Region

Ronald Tjeerd de Vries (Ron)Independent Director

Ankur Thadani is a Principal at TPG

Growth, based in Mumbai. He joined

TPG in 2013 and has worked on

multiple investments in Healthcare,

Energy and Consumer sectors across

India and the broader South-Asia

region. Ankur also serves on the board

of CTSI, Rhea Healthcare.

Ankur Thadani

Independent Director

Mr. Ronald Tjeerd de Vries (Ron) is

a MsC in Chemical Engineering and

IMD executive Leadership Alumni.

He has 25 years’ experience in the

MNC Corporate Sector in Pharma

and Food Presently he is Owner

and MD of RDV Consulting based

at Auckland (NZ).

R. Ramakrishnan

Solara’s leadership team

11

Leadership with several years of experience in the pharmaceutical industry

Jitesh has more than 20 years’ experience and has led the North America API business as well as managed the Formulations P&L business of erstwhile Shasun Pharmaceuticals Limited, whichgot merged with Strides Shasun Limited. Jitesh has been responsible for P&L business for North America and Europe Finished Dosage Form (Regulated Markets-Region 1) and overallresponsible for API business P&L.

Sreeni has over 24 years of experience in Pharmaceutical Manufacturing, Technology Transfer, Project Management in setting up facilities, Quality Assurance, Plant operations and Sales & Marketing.

Sreenivasa Reddy B. (Sreeni)COO

Jitesh Devendra (Jitesh)CEO

Hariharan S. (Hari)CFO

Hariharan is a Cost Accountant with rich and varied experience of more than 30 years in field of Corporate Finance, Accounts and Strategic planning. He played a vital role in the merger process ofShasun Pharmaceuticals Ltd. with Strides Shasun Limited.

Sundara Moorthy V. (Sundar)SVP- Quality Management & Regulatory Affairs

Venkateshan Rangachari (Venky)CBOVenky has over 28 years of experience in Executive Management and leadership roles in pharmaceutical and project management across varied geographies in Healthcare space. He has rich experiencein API and CRAMS business across the world, has held senior positions in business development and managing overseas subsidiaries/ manufacturing units .

Sundara Moorthy has done his Post Graduation in Organic Chemistry. He has rich and diversified experience of 23 years in the Quality Management, Regulatory Affairs and Compliance functions.

Swaminathan Srinivasan(Swami)Head – Research & Development

25+ years of experience in generic pharmaceutical industry with vast exposure in active pharmaceutical ingredient as well the Dosage forms with deep understanding of the industry dynamics. He wasassociated with Jubilant Life Sciences, Alembic, Dr. Reddy Laboratories, Orchid & Ranbaxy.

12

13

Robust manufacturing capabilities5 facilities with all major regulated market approvals

CuddaloreMysore

INTERMEDIATES

Puducherry

Mangalore

Ambernath

EU GMP

Vizag(Greenfield Site)

Core focus• Mirrored facilities for developing products • Deploy systems that are highly automated and stringent, specifically in

the labor intensive areas.• Focus on technology and production processes that represent a clear

advantage against the industry standard

Capabilities1600 KL capacity with capabilities in high vacuum distillation, hydrogenation, halogenation, Grignard reaction, polymer chemistry amongst others

Key Approvals Globally compliant API facilities with all regulatory approvals and adherence to the highest quality standards

Manufacturing StrategyCapacity creation after assurance of demand and location based diversification for minimizing concentration risk

14

Facilities

Pondicherry Facility Multipurpose Cuddalore Facility

▪ The buildings for the manufacturing of Intermediates and isolationof final drug substance are separate.

▪ Packing sections are controlled and meets ISO Class - 8requirements.

▪ Reactors are in the range of 1200 L to 12,500 L of size with MOC of SS, MSGL, GL

▪ Highly flexible pilot plant with a broad range of equipment

▪ FDA inspected cGMP multi purpose API and intermediate facility

▪ Broad range of reactor sizes with flexible containment and LEV facilities. The facility has reactors varying in size from 250 L to 12500 L

▪ Different material of construction SS, GL, SS-GL, MS-GL, Hastealloy

▪ Temperature ranges from –90°C to +200°C

▪ Segregated hydrogenation facility with multiple gas scrubbing systems

15

Facilities

Multipurpose Mangalore Facility

▪ Multi purpose cGMP API and intermediate facility inspected by DCD, USFDA,

WHO, EDQM, MFDS, TGA, AEMPS, ISO-14001

▪ 6 Full fledged cleanrooms meeting ISO class-8 slandered can hand six

products simultaneously

▪ Broad range of stainless steal and Mild steal glass lined reactors of size from

250 L to 6300L

▪ Self contained “Pilot facility” having SS, GL and all glass reactors of size 20 Lit

to 250Lt

▪ Pressure reaction facility, Operating temperature ranges from –20°C to +130°C

Multipurpose Ambernath Facility

▪ FDA inspected cGMP multi purpose API and intermediate facility

▪ The facility has reactors varying in size from 250 L to 8000 L

▪ Different material of construction SS, GL, SS-GL, MS-GL

▪ Temperature ranges from –20°C to +130°C

▪ Segregated hydrogenation facility with multiple gas scrubbing systems

16

Dedicated research and development capabilities

17

Strong technical leadership to develop

high-quality pharma products that

create strategic value for our partners

and customers

Technical Expertise

R&D capability to develop over an

entire cycle with new and better

technologies at competitive cost

Development

Focus on differentiated products

characterized by complex formulations

across diverse therapeutic categories

Product Selection

Strong IP assessment capabilities and

strong global regulatory expertise

Regulatory Filings

Our R&D Centre in Chennai Our R&D Centre in Bangalore

Two India based R&D Centre for best in class product development

18

Foothold in key markets

37%

US6%

Japan

18%

SE Asia

25%

EU

Establishing relationship with customers ensuring business enhancement

3%

LatAm

3%

MENA

8%

WHO

18

Regulatory Approvals – Inspection Track Record

19

Regulatory AgencyLatest Inspections at

Puducherry Cuddalore Mangalore Ambernath

United States May-2017 Jul-2019 Jul-2018 Jan-2019

Europe Nov-2014 Jan-2017 Sept-2017 Oct-2017

Geneva - Oct-2016 Feb-2018 -

India Jul-2018 Jan-2018 Aug-2018 Dec-2017

TG TGA, Australia - May-1998 Feb-2013 -

Uni United Kingdom Jan-2017 Jan-2017 - -

Japan Nov-2007 Mar-2017 Jul-2019 -

Regulatory Approvals – Inspection Track Record

20

*As Mysore is an intermediate site, no regulatory inspection has been conducted so far. Site has a valid GMP certificate issued by the Drug Control Department, Government of Karnataka

Wide product offerings and pipeline

21

Rich basket of niche high value products for the global markets

DMF FILING RUN RATE GEOGRAPHY WISE FILINGS

79

17

13

11

08

05

8

6 6

910

FY16 FY17 FY18 FY19 FY20(P)

• 50+ Commercial APIs predominantly in Anthelmintic, Anti-malarias, Anti-infective, Neuromuscular Insomnia, Anti Psychotic Hyperkalemia, amongst others

• 20+ APIs under development across across Anthelmintic, Anti-malarias, Beta blockers, Muscle relaxants, Novel Oral Anti-Coagulants, Anti-infective and other niche segments

• 140+ DMFs filed

05 12

Promising Approach for CRAMS

Customer confidentiality guaranteed

ConfidentialityHighly responsive, customer focused teams from inquiry to delivery

ResponsivenessDelivery performance a KPI, even at the proposal stage

Performance

Dedicated Project Management, driving project execution and responding to customer need

TeamHigh level of communication, visibility and customer involvement

TransparencyPost-project customer survey to continuously monitor our performance and drive improvement

Feedback

22

Wide gamut services across the development chain

Chemistry Pre-clinical Phase 1 to Phase 3 Commercial

• Hit to Lead• Lead Optimization

• Synthesis & Purification• Ref. Std. & Impurities

• Process Optimization• cGMP Production

• Process Validation • Capacities• Cost Advantage

Contract ManufacturingAPIs and Advanced Intermediates

Custom SynthesisPilot campaigns, Clinical supply

Contract Development (FTEs)Lead Analogues, Building Blocks, Ref Stds

CONTRACT DEVELOPMENT

CONTRACT MANUFACTURING

ANALYTICAL & REGULATORY SUPPORT

23

Business development structure with customer centricity

24

Business Development Team

Go to market team

Emptor (Customer centricity)

Aligned to execute business seamlessly while focusing on customer

service, complaints, supply assurances and receivables

Post the handover from BD team, GTM team focusses on business execution,

driving growth strategies and retaining customer business

Core focus around portfolio strategy, selection, new opportunities and business

analytics

How do we differentiate over traditional API approach

• Focus on end to end process

• Customer centricity at the core

• Closed cohesive working with analytics

and R&D

High focus on customer advocacy

EHS and Safety

25

Zero Liquid Discharge System

▪ Low TDS treatment followed by

Biological treatment system cum RO

Plant.

▪ High TDS treatment followed by Pre

Chemical treatment cum MEE & RO

Plant.

▪ Agitator Thin Film Drier followed by

MEE Plant to separate solids.

▪ Recovered water used in gardening

and utility for plant

▪ Solids disposed to government

authorized landfills

Biological Treatment Plant

▪ Biological Treatment Plant –

LTDS & HTDS

MEE

▪ Multiple Effect Evaporation

System (MEE Plant)

26

Up Coming Greenfield Site - Vizag

27

Project Roadmap – Multi Purpose Facility - Vizag

Project approval Construction Installation Facility Validation

• Project Approval – June’19

• Statutory Approvals & Ordering of Long Lead Items July’19 – Sept’19

• July’19 –Jan’20 • Dec’19 – Apr’20• Validation between

May’20- June’20

28

Other planned initiatives

Vizag green field multi purpose facility will be up and running in Q2 of 2020

Solara is looking forward to acquire kilo lab facilities in USA and Europe

Willing to provide dedicated facilities for our esteemed customers based on their future requirement

Solara is always stay ahead of providing advance and state of the art infrastructure and instrumentation for our existing

customers in collaborative manner.

29

30

Significant growth and profitability over 5 quarters

REVENUE(₹ in million)

NET PROFITS(₹ in million)

EBITDA(₹ in million)

EARNINGS PER SHARE(₹ / share)

3,0333,437 3,601

3,919

3,345

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

92 96

221262 265

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

465 494

656701

663

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

34

910 10

Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Well capitalized to fund future growth initiatives.

Including for cash reserves and committed equity infusion from the promoters and our lead investor – TPG Growth, Solara has a surplus of ₹5 billion ($68 million)

Growth in Reported EBITDA margins over last 5 quarters

Steady progress through the proactive cost improvement programs

Fast expanding portfolio of new products and new customers to access new markets for existing products

Strong leverage situation supporting better EBITDA to EPS conversion

31

FY19 Recap

Figures in ₹mn, unless a % or stated otherwise. All financial numbers are for the continuing business

NET DEBT/EQUITY (X) NET DEBT/EBITDA (X)

ROCE % ASSET TURNS (X)

1.5

0.8

FY18 FY19

4.0

2.0

FY18 FY19

8.4%

14.0%

FY18 FY19

1.5

1.6

FY18 FY19

FY19 VS FY18 PERFORMANCE

Particulars FY19 FY18 YoY%

Revenue 13,991 10,367 35%

Operating EBITDA 2,862 1,559 84%

Operating EBITDA

Margins20% 15% 550 bps

R&D Cost -448 -103

Forex gain/(loss) -98 2

EBITDA 2,316 1,458 59%

EBITDA Margins 17% 14% 250 bps

HIGHLIGHTS

• Growth in Revenue by 35% due to continued growth in base

business & new product launches.

• Operating EBITDA up by 84% due to price increase; better

capacity utilization and cost improvement program

• 4x growth in R&D investments to develop new products and

process improvements.

32

Right sized balance sheet with improvements in key ratios

Improvements in financial ratios led by a right sized balance sheetposition

Net Debt to EBITDA comfortable at <2x range

Net Debt to Equity at ~0.8x

Particulars Mar’18 Mar’19 Jun’19

Shareholders' funds 7,640 9,559 9,837

Less: Goodwill -3,634 -3,587 -3,587

Net worth 4,006 5,972 6,250

Term Loan 3,026 3,236 3,144

Working Capital 3,302 3,625 3,479

Gross Debt 6,328 6.861 6,623

Less: Cash -470 -2,245 -1,639

Net Debt 5,858 4,616 4,984

Total 9,864 10,588 11,234

Particulars Mar’18 Mar’19 Jun’19

Net Tangible Fixed Assets 6,703 8,034 8,359

Net Non-current Assets 1,068 190 238

Net Current Assets 2,093 2,364 2,637

Total 9,864 10,588 11,234

SOURCES OF FUND

APPLICATION OF FUND

KEY UPDATES

All values are in ₹ Mn. 33

Our Key focus areas on execution

GROWTH IN EXISTING BUSINESS

• Market extension of existing APIs

• Continuous cost improvement programs

FUTURE GROWTH

• Planned new greenfield site for capacity expansion

• Market specific new product launches

• Focussed efforts to build CRAMS business

QUALITY AND COMPLIANCE

• Continued investments to drive quality and

compliance to the next level

34

Thank You