Inv

est

or

Pre

sen

tati

on

Ja

nu

ary

20

16

Tab

le o

f C

on

ten

ts

E

xecu

tive S

um

mary

C

om

pan

y O

verv

iew

B

us

iness O

verv

iew

In

du

str

y O

verv

iew

F

inan

cia

l O

verv

iew

3

Execu

tive S

um

mary

Exe

cuti

ve

Su

mm

ary

4

•M

an

gala

m D

rug

s &

Org

an

ics

Ltd

. (M

an

gala

m)

wa

s in

corp

ora

ted

in 1

97

2 a

nd

is o

ne

of

the

larg

est

su

pp

liers

an

d m

an

ufa

ctu

rers

of

An

ti-M

ala

ria

l Act

ive

Ph

arm

ace

uti

cals

In

gre

die

nts

(A

PI)

in t

he

wo

rld

.

•T

he

co

mp

an

y’s

he

ad

qu

art

er

is i

n M

um

ba

i, w

ith

tw

o m

an

ufa

ctu

rin

g f

aci

lite

s a

t V

ap

i, G

uja

rat.

•M

an

gala

m w

as

inco

rpo

rate

d b

y M

r. G

. M

. D

ho

ot,

wh

o h

as

be

en

th

e v

isio

na

ry b

eh

ind

th

e s

ucc

ess

a

nd

div

ers

ific

ati

on

of

the

co

mp

an

y fr

om

a c

he

mic

al c

om

pa

ny

to b

eco

me

a g

lob

al A

PI

sup

plie

r.

Ov

erv

iew

•A

nti

Ma

laria

l A

PI’

s l

ike

Art

he

me

the

r, L

um

efr

an

tin

e,

Art

esu

na

te ,

Am

od

iaq

uin

e H

ydro

chlo

rid

e,

Dih

ydro

art

em

isin

in, P

ipe

raq

uin

e p

ho

sph

ate

, C

hlo

roq

uin

e P

ho

sph

ate

, H

ydro

xych

loro

qu

ine

Su

lph

ate

, P

yro

na

rid

ine

te

tra

ph

osp

ha

te

•A

nti

Re

tro

vir

al A

PI’

s –

Th

e c

om

pa

ny

ha

s re

cen

tly

fo

raye

d in

to A

nti

Re

tro

vir

al A

PI’s

an

d h

as

rece

ive

d

ap

pro

val a

nd

is m

an

ufa

ctu

rin

g T

en

ofo

vir

Dis

op

roxy

l Fu

ma

rate

, 2

oth

er

pro

du

cts

are

at

valid

ati

on

st

ag

e a

nd

5 m

ore

in R

&D

ph

ase

.

•O

the

rs -

Uri

cosu

ric

Ag

en

t :

All

op

uri

no

l, A

na

lge

sic:

Nim

esu

lide

an

d A

nti

Hyp

ert

en

sive

: B

iso

pro

lol

Fum

era

te

Bu

sin

ess

Mix

•D

om

est

ic C

lie

nts

: A

jan

ta P

ha

rma

, C

IPLA

, IP

CA

, S

un

Ph

arm

a,

Dr.

Re

dd

y’s

.

•In

tern

ati

on

al C

lie

nts

: S

an

ofi

, G

uili

n,

Myl

an

, M

ER

CK

Cli

en

ts

•R

ev

en

ue

at

INR

2,2

07

mn

; 3

ye

ar

CA

GR

of

12

.8%

•E

BIT

DA

at

INR

20

4 m

n;

3 y

ea

r C

AG

R o

f 1

1.6

%

•N

et

Pro

fit

at

61

mn

; 3

ye

ar

CA

GR

of

11

3.2

%

FY

20

15

Fin

an

cia

ls

5

Co

mp

an

y O

verv

iew

Co

mp

an

y O

ve

rvie

w

6

1,5

41

1

,28

8

1,2

28

2,2

07

FY1

2FY

13

FY1

4FY

15

Re

ve

nu

e G

row

th (

INR

Mn

)

nM

an

gala

m D

rug

s &

Org

an

ics

LTD

. w

as

inco

rpo

rate

d i

n 1

97

2,

com

me

nce

d o

pe

rati

on

s in

19

77

, a

nd

wa

s lis

ted

on

BS

E a

nd

NSE

in

20

05

-06

. T

he

Co

mp

an

y h

as

am

ark

et

cap

ita

liza

tio

n o

f

aro

un

dR

s.2

,57

0M

n(a

so

f3

1st

De

cem

be

r2

01

5)

nW

ell

est

ab

lish

ed

p

laye

r in

a

n

Ind

ust

ry

wit

h

stro

ng

e

ntr

y

ba

rrie

rs .

n

Th

e c

om

pa

ny

is o

ne

of

the

la

rge

st a

nd

mo

st p

refe

rre

d A

PI

sup

pli

er

for

An

ti-M

ala

ria

dru

g m

an

ufa

ctu

rin

g c

om

pa

nie

s in

the

re

gu

lato

ry m

ark

et

acr

oss

th

e w

orl

d.

nT

he

co

mp

an

y’s

AP

Is h

ave

re

ceiv

ed

ce

rtif

ica

tio

ns

fro

m W

orl

d

He

alt

h

Org

an

iza

tio

n(W

HO

),

Eu

rop

ea

n

Dir

ect

ora

te

for

Qu

alit

y o

f M

ed

icin

es

(ED

QM

) a

nd

E

uro

pe

an

M

ed

icin

es

Ag

en

cy(E

MA

).

nM

an

gala

m

is o

ne

of

the

5

co

mp

an

ies

glo

ba

lly t

o

qu

alif

y

un

de

r th

e B

ill C

linto

n F

ou

nd

ati

on

fo

r su

pp

ly o

f A

nti

-Ma

lari

al

dru

gs

wo

rld

wid

e.

nT

he

co

mp

an

y h

as

div

ers

ifie

d i

ts p

rod

uct

ra

ng

e o

ver

the

la

st

few

ye

ars

fro

m I

nte

rme

dia

tes

an

d S

pe

cia

lty

Ch

em

ica

ls t

o

AP

I’s

like

A

nti

M

ala

ria

l,

An

ti

Re

tro

vira

l,

Uri

cosu

ric

Ag

en

t,

An

alg

esi

c a

nd

An

ti H

ype

rte

nsi

ve.

26

.23

%

73

.77

%

FY

15

Se

gm

en

tal

Re

ve

nu

e B

rea

k-u

p

Exp

ort

sD

om

est

ic

Ke

y M

ile

sto

ne

s

7

Full

fle

dge

d p

ub

lic li

mit

ed

Ap

pro

va

l fro

m B

ill

Cli

nto

n F

ou

nd

ati

on

19

77

19

90

19

96

20

01

20

02

20

04

20

08

20

06

19

72

M

an

gala

m w

as

Inco

rpo

rate

d

Co

mm

en

ced

Op

era

tio

ns

Div

ers

ific

ati

on

into

AP

Is

Ma

nga

lam

Dru

gs

& O

rga

nic

s Lt

d

wa

s fo

rme

d

ISO

ce

rtif

ica

tio

n

Firs

t a

pp

rova

l fro

m E

DQ

M f

or

Nim

esu

lide

Co

mp

an

y g

ot

list

ed

on

BS

E &

NS

E

20

14

2

01

1

20

10

Re

ceiv

ed

DM

F &

WH

O a

pp

rov

als

for

An

ti-M

ala

ria

l A

PIs

Up

gra

de

d F

aci

lity

1

Sta

rte

d A

nti

-Re

tro

vir

al A

PI

Pro

du

ctio

n

20

15

Furt

he

r A

PI

pro

du

cts

Div

ers

ific

ati

on

Ke

y S

tre

ng

ths

8

En

try

Ba

rrie

r

2-3

ye

ars

on

an

av

era

ge

fo

r a

ne

w

en

tra

nt

to s

tart

m

an

ufa

ctu

rin

g A

PI

Hig

h q

ua

lity

sta

nd

ard

fo

r a

pp

rova

ls

We

ll e

sta

blis

he

d

larg

e p

laye

rs in

th

e

ma

rke

t

Co

mp

eti

tiv

e

Po

siti

on

Larg

est

m

an

ufa

ctu

rer

of

An

ti-m

ala

ria

l AP

Is

in t

he

wo

rld

On

e o

f th

e lo

we

st

cost

pro

du

cer

Top

re

ven

ue

p

rod

uct

s a

re b

est

se

llin

g c

om

bin

ati

on

fo

r A

nti

-Ma

lari

a

form

ula

tio

ns

Pre

sen

ce i

n

Re

gu

lato

ry M

ark

et

Ind

ia’s

ma

jor

An

ti-

ma

lari

al

AP

I m

an

ufa

ctu

rer

to

h

ave

pre

mie

r ce

rtif

ica

tio

ns

Pro

du

cts

un

de

r re

gu

late

d m

ark

et

com

ma

nd

p

rem

ium

pri

cin

g

Sta

nd

alo

ne

Su

pp

lier

for

An

ti-

Ma

lari

al A

PIs

in t

he

re

gu

lato

ry m

ark

et

Fo

cus

on

R&

D &

D

ive

rsif

ica

tio

n

10

% o

f th

e t

ota

l w

ork

fo

rce

are

in

volv

ed

in R

&D

Stro

ng

fo

cus

on

R

&D

Div

ers

ifyi

ng

fro

m

Ge

ne

ric

AP

I to

A

nti

-ma

lari

al A

PI’s

& A

nti

Re

tro

vira

l A

PI’s

Pre

mie

r C

ert

ific

ati

on

s

WH

O a

pp

rova

ls f

or

7 A

nti

-ma

lari

al

AP

Is.

ED

QM

ap

pro

val f

or

2 A

PIs

Clin

ton

fo

un

da

tio

n

ap

pro

val t

o s

up

ply

A

nti

-ma

lari

al A

PIs

w

orl

dw

ide

Exe

cuti

ve

Dir

ect

or

9

Mr.

Go

va

rdh

an

M.

Dh

oo

t

(Ch

air

ma

n &

Wh

ole

Tim

e D

ire

cto

r)

nM

r.

Go

vard

ha

n

Mu

rlid

ha

r D

ho

ot

ha

s b

ee

n

wit

h

the

com

pa

ny

sin

ce in

cep

tio

n.

nH

e h

as

be

en

an

in

stru

me

nta

l in

in

cre

asi

ng

th

e e

xpo

rts

of

the

Co

mp

an

y a

nd

exp

an

din

g a

nd

div

ers

ifyi

ng

th

e c

om

pa

ny

fro

m c

he

mic

al

ma

nu

fact

ure

r to

a la

rge

AP

I m

an

ufa

ctu

rer.

nU

nd

er

his

le

ad

ers

hip

th

e c

om

pa

ny

ha

s re

ceiv

ed

ap

pro

vals

fro

m i

nte

rna

tio

na

l re

gu

lato

ry b

od

ies

like

WH

O,

ED

QM

an

d

EM

A.

nM

r. D

ho

ot

lea

d t

he

wa

y to

th

e c

om

pa

ny

's d

ive

rsif

ica

tio

n.

Ma

nu

fact

uri

ng

Fa

cili

tie

s a

t V

ap

i, G

uja

rat

10

§To

tal P

rod

uct

ion

are

a:

32

72

Sq

. m

§2

AP

I m

an

ufa

ctu

rin

g a

nd

1 s

olv

en

t

reco

very

blo

ck

§A

PIs

Ma

nu

fact

uri

ng

Ca

pa

city

: 7

20

TPA

Faci

lity

1 (

WH

O a

pp

rov

ed

)

§To

tal P

rod

uct

ion

are

a:

30

59

Sq

. m

§To

tal 1

AP

I m

an

ufa

ctu

rin

g,

1

inte

rme

dia

te m

an

ufa

ctu

rin

g,

1 p

ilot

pla

nt

& 1

re

cove

ry b

lock

s

§M

an

ufa

ctu

rin

g c

ap

aci

ty:

AP

Is 3

60

TPA

§ I

nte

rme

dia

tes

: 1

,00

0 T

PA

Faci

lity

2

Un

it 1

Va

pi,

Gu

jara

t La

b,

Un

it 2

Va

pi,

Gu

jara

t

Re

sea

rch

& D

ev

elo

pm

en

t

11

nT

he

co

mp

an

y h

as

a s

tro

ng

fo

cus

on

R&

D o

n n

ew

pro

du

cts

an

d t

he

rap

eu

tic

seg

me

nts

.

nT

he

re i

s a

hig

hly

qu

alif

ied

te

am

of

20

+ r

ese

arc

h s

cie

nti

sts

nW

orl

d c

lass

lab

ora

tory

wit

h s

tate

of

the

art

te

chn

olo

gy.

nN

on

-in

frin

gin

g p

roce

ss >

Pa

ten

tab

le p

roce

ss

nT

he

la

bo

rato

ry h

as

be

en

ap

pro

ved

by

the

De

pa

rtm

en

t o

f

Scie

nti

fic

an

d I

nd

ust

ria

l R

ese

arc

h,

Go

vern

me

nt

of

Ind

ia

nR

&D

te

am

cu

rre

ntl

y fo

cuse

d o

n d

eve

lop

ing

an

d a

pp

rova

l

qu

alif

ica

tio

n p

roce

ss o

f A

nti

-Re

tro

vira

l AP

Is

−1

su

cce

ssfu

lly l

au

nch

ed

AP

I -

Te

no

fovi

r D

iso

pro

xyl

−2

AP

Is u

nd

er

valid

ati

on

ph

ase

−5

un

de

r d

eve

lop

me

nt

Bu

sin

ess O

verv

iew

Ma

lari

a:

Glo

ba

l P

he

no

me

no

n

13

♦ E

leva

ted

occ

urr

en

ce o

f ch

loro

qu

ine

- o

r

mu

lti-

resi

sta

nt

ma

lari

a

♦ O

ccu

rre

nce

of

chlo

roq

uin

e-r

esi

sta

nt

ma

lari

a

♦ N

o P

lasm

od

ium

fa

lcip

aru

m o

r ch

loro

qu

ine

-

resi

sta

nce

♦ N

o m

ala

ria

nIn

2

01

4,

97

co

un

trie

s a

nd

te

rrit

ori

es

ha

d

on

-go

ing

m

ala

ria

tra

nsm

issi

on

−M

ala

ria

is

pre

sen

tly

en

de

mic

in

a b

roa

d b

an

da

rou

nd

th

e

eq

ua

tor,

ina

rea

so

fth

eA

me

rica

s,m

an

yp

art

so

fA

sia

,a

nd

mu

ch o

f A

fric

a

nA

n e

stim

ate

d 3

.3 b

illio

n p

eo

ple

are

at

risk

of

ma

lari

a,

of

wh

om

1.2

bill

ion

are

at

hig

h r

isk

−In

20

13

, 9

0%

of

the

wo

rld

’s m

ala

ria

de

ath

s o

ccu

rre

d i

n

Afr

ica

nT

he

tw

o m

ost

co

mm

on

str

ain

s o

f m

ala

ria

are

P.

falc

ipa

rum

(P

f)

an

d P

. V

iva

x (P

v)

nP

lasm

od

ium

fa

lcip

aru

m (

Pf)

is t

he

wo

rst

stra

in o

f m

ala

ria

−P

F ca

use

s th

e m

ost

acu

te a

nd

se

vere

fo

rm o

f m

ala

ria

;

mo

st o

f th

e c

ase

s re

gis

tere

d u

nd

er

WH

O a

re P

F m

ala

ria

l

case

s .

nP

lasm

od

ium

V

iva

x (P

v)

is

a

pro

tozo

al

pa

rasi

te

an

d

a

hu

ma

n

pa

tho

ge

n.

P.v

ma

lari

a

is

the

m

ost

fr

eq

ue

nt

an

d

wid

ely

dis

trib

ute

d c

au

se o

f re

curr

ing

ma

lari

a.

It i

s le

ss v

iru

len

t th

an

P.Fa

lcip

aru

m m

ala

ria

.

nT

he

A

nti

-Ma

lari

al

ma

rke

t is

b

ee

n

gro

win

g

fro

m

21

9M

n

tre

atm

en

ts i

n 2

01

0 t

o 3

67

Mn

. t

rea

tme

nts

in

20

14

Sou

rce

: W

HO

Ad

dre

ssin

g M

ala

ria

Wit

h M

ult

iple

Pro

du

cts

14

33

%

43

%

24

%

LUM

EF

AN

TR

INE

AR

TE

ME

TH

ER

Oth

er

nT

he

re a

re n

o p

erm

an

en

t p

reve

nti

on

s o

r va

ccin

es

ag

ain

st m

ala

ria

as

of

tod

ay.

nFo

llo

win

g A

nti

-Ma

lari

al

AP

Is a

re p

rod

uce

d b

y th

e c

om

pa

ny:

−A

rth

em

eth

er

−Lu

me

fan

tin

e

−A

rte

sun

ate

−A

mo

dia

qu

ine

Hyd

roch

lori

de

−D

ihyd

roa

rte

mis

inin

−P

ipe

raq

uin

e p

ho

sph

ate

−C

hlo

roq

uin

e P

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sh

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the

fa

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mp

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the

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ati

on

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op

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rese

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tio

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in

form

ati

on

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d o

pin

ion

s a

re i

n a

ll e

ve

nts

no

t cu

rre

nt

aft

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the

da

te o

f th

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rese

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tio

n.

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rta

in s

tate

me

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ma

de

in

th

is p

rese

nta

tio

n

ma

y n

ot

be

ba

sed

on

his

tori

cal

info

rma

tio

n o

r fa

cts

an

d m

ay

be

"fo

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rd l

oo

kin

g s

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me

nts

" b

ase

d o

n t

he

curr

en

tly

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ld b

eli

efs

an

d a

ssu

mp

tio

ns

of

the

ma

na

ge

me

nt

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Ma

ng

ala

m

Dru

gs

& O

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nic

s Li

mit

ed

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om

pa

ny

or

Ma

ng

ala

m )

, w

hic

h a

re e

xpre

sse

d i

n g

oo

d f

ait

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nd

in

th

eir

op

inio

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ea

son

ab

le,

incl

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ing

th

ose

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lati

ng

to

th

e C

om

pa

ny

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en

era

l

bu

sin

ess

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ns

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ts f

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dit

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row

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rosp

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s a

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fu

ture

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pm

en

ts i

n i

ts in

du

stry

an

d it

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mp

eti

tive

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eg

ula

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en

viro

nm

en

t.

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oki

ng

sta

tem

en

ts i

nvo

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kn

ow

n a

nd

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kno

wn

ris

ks,

un

cert

ain

tie

s a

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oth

er

fact

ors

, w

hic

h m

ay

cau

se t

he

act

ua

l re

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ina

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on

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ve

me

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mp

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fer

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teri

all

y fr

om

th

e r

esu

lts,

fin

an

cia

l co

nd

itio

n,

pe

rfo

rma

nce

or

ach

iev

em

en

ts e

xpre

sse

d o

r im

pli

ed

by

such

fo

rwa

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me

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incl

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ing

fu

ture

ch

an

ge

s o

r d

ev

elo

pm

en

ts i

n t

he

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mp

an

ys

bu

sin

ess

, it

s co

mp

eti

tive

en

viro

nm

en

t a

nd

po

liti

cal,

eco

no

mic

, le

ga

l a

nd

so

cia

l co

nd

itio

ns.

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rth

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pa

st p

erf

orm

an

ce i

s

no

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dic

ati

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f fu

ture

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sult

s. G

ive

n t

he

se r

isks

, u

nce

rta

inti

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an

d o

the

r fa

cto

rs,

vie

we

rs o

f th

is p

rese

nta

tio

n a

re c

au

tio

ne

d n

ot

to p

lace

un

du

e r

eli

an

ce o

n t

he

se

forw

ard

-lo

oki

ng

sta

tem

en

ts.

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e C

om

pa

ny

dis

cla

ims

an

y o

blig

ati

on

to

up

da

teth

ese

fo

rwa

rd-l

oo

kin

g s

tate

me

nts

to

re

fle

ct f

utu

re e

ven

ts o

r d

eve

lop

me

nts

.

Th

is p

rese

nta

tio

n i

s fo

r g

en

era

l in

form

ati

on

pu

rpo

ses

on

ly,

wit

ho

ut

reg

ard

to

an

y sp

eci

fic

ob

ject

ive

s, f

ina

nci

al

situ

ati

on

s o

r in

form

ati

on

al

ne

ed

s o

f a

ny

pa

rtic

ula

r p

ers

on

. T

his

pre

sen

tati

on

do

es

no

t co

nst

itu

te a

n o

ffe

r o

r in

vita

tio

n t

o p

urc

ha

se o

r su

bsc

rib

e f

or

an

y se

curi

tie

s in

an

y ju

risd

icti

on

, in

clu

din

g t

he

Un

ite

d S

tate

s. N

o p

art

of

it s

ho

uld

fo

rm t

he

ba

sis

of

or

be

re

lie

d u

po

n i

n c

on

ne

ctio

n w

ith

an

y in

ve

stm

en

t d

eci

sio

n o

r a

ny

con

tra

ct o

r co

mm

itm

en

t to

pu

rch

ase

or

sub

scri

be

fo

r a

ny

secu

riti

es.

No

ne

of

ou

r se

curi

tie

s m

ay

be

off

ere

d o

r

sold

in

th

e U

nit

ed

Sta

tes,

wit

ho

ut

reg

istr

ati

on

un

de

r th

e U

.S.

Secu

riti

es

Act

of

19

33

, as

am

en

de

d,

or

pu

rsu

an

t to

an

exe

mp

tio

n f

rom

re

gis

tra

tio

n t

he

re f

rom

.

Th

is p

rese

nta

tio

n i

s co

nfi

de

nti

al

an

d m

ay

no

t b

e c

op

ied

or

dis

sem

ina

ted

, in

wh

ole

or

in p

art

,a

nd

in a

ny

ma

nn

er.

Va

lore

m A

dvi

sors

Dis

cla

ime

r:

Va

lore

m A

dvi

sors

is

an

In

de

pe

nd

en

t In

vest

or

Re

lati

on

s M

an

ag

em

en

t Se

rvic

e c

om

pa

ny.

Th

is P

rese

nta

tio

n h

as

be

en

pre

pa

red

by

Va

lore

m A

dvi

sors

ba

sed

on

info

rma

tio

n a

nd

da

ta

wh

ich

th

e C

om

pa

ny

con

sid

ers

re

liab

le,

bu

t V

alo

rem

Ad

viso

rs a

nd

th

e C

om

pa

ny

ma

kes

no

re

pre

sen

tati

on

or

wa

rra

nty

, e

xpre

ss o

r im

plie

d,

wh

ats

oe

ver,

an

d n

o r

elia

nce

sh

all

be

pla

ced

on

, th

e t

ruth

, a

ccu

racy

, co

mp

lete

ne

ss,

fair

ne

ss a

nd

re

aso

na

ble

ne

ss o

f th

e c

on

ten

ts o

f th

is P

rese

nta

tio

n.

Th

is P

rese

nta

tio

n m

ay

no

t b

e a

ll in

clu

sive

an

d m

ay

no

t co

nta

in a

ll o

f th

e

info

rma

tio

n t

ha

t yo

u m

ay

con

sid

er

ma

teri

al.

An

y lia

bili

ty i

n r

esp

ect

of

the

co

nte

nts

of,

or

an

y o

mis

sio

n f

rom

, th

is P

rese

nta

tio

n i

s e

xpre

ssly

exc

lud

ed

. V

alo

rem

Ad

viso

rs a

lso

he

reb

y

cert

ifie

s th

at

the

dir

ect

ors

or

em

plo

yee

s o

f V

alo

rem

Ad

viso

rs d

o n

ot

ow

n a

ny

sto

ck in

pe

rso

na

l o

r co

mp

an

y ca

pa

city

of

the

Co

mp

an

y u

nd

er

revi

ew

For

furt

he

r in

form

ati

on

ple

ase

co

nta

ct o

ur

Inv

est

or

Re

lati

on

s R

ep

rese

nta

tiv

e:

Mr.

An

uj

So

np

al

Va

lore

m A

dv

iso

rs

Te

l: +

91

-22

-30

06

-75

21

/22

/23

/24

Em

ail:

in

fo@

valo

rem

ad

viso

rs.c

om