Dr. Reddy s Laboratories Limited Investor Presentation June 2013 LIFE. RESEARCH. HOPE

Dr. Reddy s Laboratories Limited Investor Presentation June 2013 LIFE. RESEARCH. HOPE

Safe Harbor Statement This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact, including, but not limited to, those that are identified by the use of words such as anticipates, believes, estimates, expects, intends, plans, predicts, projects and similar expressions. Risks and uncertainties that could affect us include, without limitation: General economic and business conditions in India; The ability to successfully implement our strategy, our research and development efforts, growth and expansion plans and technological changes; Changes in the value of the Rupee and other currency changes; Changes in the Indian and international interest rates; Allocations of funds by the Government; Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry; Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and Changes in political conditions in India. Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes may vary materially from those indicated in the applicable forward-looking statements. Any forward-looking statement or information contained in this presentation speaks only as of the date of the statement. We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the statement or information is made or to account for unanticipated events. 1

Company Overview Looking Back Looking Forward Business Updates 2

Our Strategy Leverage industry-leading science & technology, product offering and customer service with execution excellence. Our Values Integrity and Transparency Safety Quality Productivity Respect for Individual Collaboration and Teamwork Sustainability 3

Overview Integrated business model spanning 3 segments. Global Generics Global access to affordable medicines Pharmaceutical Services & Active Ingredients Proprietary Products Meeting unmet medical needs... Deep Understanding Partner of Choice FY13 Revenue mix 71% of total Finished dosage businesses in distribution-driven as well as doctor-driven markets Strategic focus on key large markets North America, India, Russia / CIS & other Emerging Market territories and Europe FY13 Revenue mix 26% of total Amongst the leaders in supply of generic APIs globally Customers include generic manufacturers, innovator companies Focus on building sustainable and profitable branded proprietary business Efforts in new drug discovery, differentiated formulations & Biologics (with a focus on Generic Biopharmaceuticals) * Revenue converted at the average billing rate for FY 13. 4

Minimizing Business risk Diversified Model Strong vertically integrated portfolio of businesses, geographies & products. Global Generics Generics : North America // Germany // Rest of Europe Branded Generics : India // Russia & CIS // Other Emerging Markets // GSK Alliance Generic Biopharmaceuticals Dr. Reddy s PSAI Active Ingredients Custom Pharmaceutical Services Proprietary Products Specialty/Differentiated Formulations 5

Company Overview Looking Back Looking Forward Business Updates 6

The Last Decade Acquired Roche's API business (Mexico) 2004 2005 Launched Reditux (Rituximab) World's 1 st monoclonal antibody biosimilar in India $1 Bn in revenue 2006 Acquired betapharm simvastatin / finastride AG 2007 2008 Acquired GSK s Bristol penicillin facility 10 th year of NYSE listing Strategic alliance with GSK for emerging markets 2009 2010 2011 Acquired Octoplus Merck Serono deal for biosimilars 2012 2013 $2 Bn in revenue Launched Cresp ( darbepoetin alfa) in India - world s first generic and only one in India Acquired BASF s formulation manufacturing unit and Dow Pharma s small Molecules Business Launch of US specialty business, Promius TM Pharma. Built the foundations for a strong business. Moved up the value chain. Strengthened capabilities. Achieved scale and global presence. Acquired to aid growth. $ 463 Mn Revenue converted at respective years average billing rate. Revenue CAGR 19 % $ 2.23 Bn 7

Infrastructure : Global footprint Leiden Oral solids and topical Louisiana Princeton Tennessee Cambridge Chiral technology, mpegs Mexico Steroids Oral solids and suspensions India Active ingredients, oral solids, injectables API (8) Finished Dosages (9) Biologics (1) Technology Development Centers (4) R&D Centers Integrated Product Development Organization [IPDO] and NCE R&D center in Hyderabad, India Aurigene R&D center in Bangalore, India, Princeton Numbers in brackets indicate number of facilities/plants 8

Our Strengths 1. Industry leading chemistry skills Several niche product opportunities in API & generics (tacrolimus / lansoprazole / omeprazole mg OTC / fondaparinux / fexofenadine product family / Ibandronate / metoprolol succinate etc) 2. Early mover advantage in biosimilars Global generic launch of rituximab 4 products in marketing portfolio 3. Infrastructure 25+ billion units in generics capacities 9 formulation (4 USFDA approved) and 8 API mfg facilities (All USFDA approved) 4. Diversified business model Risk diversified across different nature of businesses and across countries 5. High vertical integration Global leader in DMF filings (577 Mar 13) 9

Robust improvement in financial metrics Base Revenue ($ Mn) 1,353 1,428 1,639 1,918 2,232 EBITDA ($ Mn) 332 One-off contribution from exclusivity sales 334 360 530 534 FY09 FY10 FY11 FY12 FY13 Base revenues represent revenues excluding significant exclusivity sales All figures converted at respective periods average translation/ delivered rate FY09 FY10 FY11 FY12 FY13 All figures converted at respective periods average translation/ delivered rate PAT % to sales 12% 13% 14% 16% 15% 16% 18% 18% 24% 23% FY09 FY10 FY11 FY12 FY13 PAT adjusted for one time non cash impairment charges & other non recurring costs FY09 FY10 FY11 FY12 FY13 RoCE mentioned above is pre-tax Operating RoCE adjusted for one time non cash impairment charges & other non recurring costs 10

Company Overview Looking Back Looking Forward Business Updates 11

Future Growth Drivers Innovation (R&D) Organic Growth Productivity Inorganic Growth Complex generics and injectables Biosimilars Differentiated Formulations Breadth and Depth Customer relationships and engagement Procurement of product materials and packaging Manufacturing processes Product and market rationalisation Alliances manufacturing & marketing Capability based Acquisitions In-licensing and brand acquisitions Marketing and distribution Corporate Governance, Sustainability and Operations excellence 12

Small molecules Complex generics Current Performance Development catalysts Future Outlook Complex Generics Growing pipeline of limited competition products in US E.g: fondaparinux, tacrolimus, omeprazole Mg OTC, metoprolol etc Technology Platforms to aid complex generic dev.. Mpegs Chiral technology Biocatalysis technology Polymer technology Improving R&D productivity & filings rate Greater share of filings to belong to niche category 13

Company Overview Looking Back Looking Forward Business Updates 14

Global Generics: North America Base Revenues ($ Mn) Excluding upside revenues Upside Revenues 275 301 417 570 738 FY09 FY10 FY11 FY12 FY13 $156 mn $54 mn $100 mn Portfolio Growing portfolio of limited competition products Mar-13 Mar-12 Tacrolimus 45% 22% Lansoprazole 21% 19% Ziprasidone 24% 27% Fondaparinux 27% 24% (Volume Generics Market; Source: IMS Health Inc Mar 2013) Pipeline 200 Cumulative ANDAs 65 pending ANDAs (~$32 bn of innovator brand sales value) 38 Para IVs 8 First-to-Files (FTFs) 15

Global Generics: North America Continued growth in the period upto FY17 Service Level excellence Continued strong engagement with strategic customers Strategic Focus High Quality portfolio Steady growing business Mix of limited competition and complex generics products to significantly enhance 12-15 new launches annually with launch-year 16

Emerging Markets Foot Print Emerging markets are projected to drive the global pharmaceutical market growth CIS Russia Jamaica Venezuela Brazil China India Myanmar Vietnam Srilanka Australia South Africa New Zealand 17

Global Generics: Emerging Markets Russia Revenue ($ Mn) 258 232 196 6th largest branded generic 126 152 Robust & consistent outperformance of industry growth over the years FY09 FY10 FY11 FY12 FY13 Top 6 Rx products Top 2 in market shares Top Products Market Share Rank Omez 60% 1 Nise 63% 1 Ketorol 58% 1 Ciprolet 44% 1 Cetrine 33% 2 Senade 94% 1 Increasing mix of OTC sales 29% 34% 18% 26% 13% FY09 FY10 FY11 FY12 FY13 Source: Pharmexpert YTD Dec 2012 18

Global Generics: Emerging Markets Russia Focus & Build portfolio in select Therapeutic areas : Focus Therapeutic areas Gastrointestinal Pain Anti-infectives Dermatology Cardiovascular Gynaecology Existing Grow Mega brands (brands > $20 mn) Scale-up OTC portfolio Build portfolio of differentiated New & difficult to manufacture Biosimilars & Oncology products 19

Global Generics: India Revenue (Rs Crs) 848 1,016 1,169 1,294 1,456 Strong relationship with GP/CPs Coverage of > 200,000 doctors Overall prescription ranking at 11 th (Source: July-October 12 SMSRC data) FY09 FY10 FY11 FY12 FY13 Growing portfolio of biosimilars 66 41 32 FY09 FY10 FY11 FY12 FY13 88 Rs Crs 110 Strong market share in Top brands Top 10 Brands Market Share Rank Omez 54% 1 Nise 49% 1 Stamlo 19% 1 Omez-DSR 24% 2 Reditux NA ~1 Stamlo Beta 12% 2 Razo 14% 1 Atocor 5% 6 Razo-D 9% 1 Econorm 44% 1 20

Global Generics: India Focus & Build portfolio in select Therapeutic areas : Focus Therapeutic areas Gastrointestinal Pain Anti-infectives Dermatology Cardiovascular Oncology Existing Grow & sustain Mega brands (brands > Rs. 30 crs) Scale-up Biosimilars & Oncology 1 new biosimilar launch annually Enhance customer New engagement through scale up of Dr. Reddy s Foundation for Health Education 21

Global Generics : Europe Revenue ( Mn) 183 144 140 125 110 FY09 FY10 FY11 FY12 FY13 Europe Strong cost control measures Launch of new products outside the scope of tenders Selective approach of picking portfolio 22

Pharmaceutical Services & Active Ingredients Revenue ($ Mn) 408 430 427 501 568 FY09 FY10 FY11 FY 12 FY 13 Visibility of new launches, new customer lockins and improving order book status Pipeline 17 DMFs filed in Q4 FY13 Cumulatively 577 DMFs (US 184) All figures converted at respective years average translation rate 23

Proprietary Products Strategy Calibrate investments and build a selfsustainable, commercially valuable portfolio of Specialty-oriented proprietary products Approach Pursue well-defined niche and semiblockbuster Specialty opportunities with limited competition Key Aspects Pipeline Shift from NCEs to focus on low risk R&D (differentiated products) Focus on therapeutic areas of Pain Dermatology Other TAs a) Dermatology b) Pain c) Anti-infectives Alliance with GSK to focus on commercialization of differentiated products in Emerging Markets 24

Biologics Current Performance 1 st 1 st biosimilar biosimilar darbepoetin alfa in the monoclonal antibody in world. the world. The only available in India. 2001 2007 2010 2011 1 st biosimilar filgrastim (G-CSF) in India. A single source pegfilgrastim. The only affordable pegfilgrastim in India. Filgrastim Rituximab Darbepoetin alfa Pegfilgrastim Development catalysts Development, Manufacturing and Commercialization partnership with Merck Serono for entry into regulated markets 25

Dr. Reddy s Merck Serono Biosimilars deal -- Deal coverage -- Co-development Co-manufacturing Cocommercialization Global deal Portfolio of biosimilar compounds in oncology, primarily MAbs. Sharing of development costs. For non-covered products, Dr. Reddy s continues to carry out the required development / manufacturing / commercialization. Revenue allocations Merck Serono Exclusive markets Royalty arrangement Dr. Reddy s Exclusive & co-exclusive markets US market Co- commercialization 26

Thank You For any information please contact Investor Relations Cell : Kedar Upadhye at kedaru@drreddys.com / +91 40 66834297 Saunak Savla at saunaks@drreddys.com / +91 40 49002135 Milan Kalawadia (USA) at mkalawadia@drreddys.com / +1 9082034931

Q4 FY13 Performance $ 613 Million 26% YoY gr $170 mn 28% to sales 37% YoY gr Revenue EBITDA R&D Filings $43 mn 7.0% to sales 6 ANDA filed 17 DMFs filed All US dollar figures based on convenience translation rate of 1USD = Rs 54.52 28

Revenue mix by segment $ mn $ mn Q4 Mar 13 Q4 Mar 12 Growth% Global Generics North America Europe India Russia & Other CIS RoW PSAI North America Europe India RoW Proprietary Products & Others Total 414 337 23 209 160 31 34 33 2 64 59 9 83 65 27 24 20 18 187 137 36 38 22 73 81 51 58 30 24 23 39 40 (5) 12 13 (6) 613 488 26 All US dollar figures based on convenience translation rate of 1USD = Rs 54.52 29

FY 2013 Performance $ 2,133 Mn 26% YoY gr # $510 mn 24% to sales 30%+ YoY gr # Revenue EBITDA R&D Filings $141 mn 6.6% to sales 30% YoY gr 18 ANDA, 1 NDA filed 47 DMFs filed # - Excluding the impact of Olanzapine from FY 12 All US dollar figures based on convenience translation rate of 1USD = Rs 54.52 30

Revenue mix by segment $ mn $ mn FY2013 FY2012 Growth% Global Generics North America Europe India Russia & Other CIS RoW PSAI North America Europe India RoW Proprietary Products & Others Total 1,514 1,206 26 694 502 38 142 151 (7) 267 237 13 310 243 28 101 72 42 563 437 29 105 78 34 220 155 43 85 66 29 152 138 10 55 49 12 2,133 1,692 26 All US dollar figures based on convenience translation rate of 1USD = Rs 54.52 # - Excluding the impact of Olanzapine from FY12 31

Key Balance Sheet Items $ mn Cash & Cash Equivalents March 2013 Dec 2012 405 427 Net Operating Working Capital 765 716 Property, plant & equipment 694 663 Goodwill & Intangibles 257 228 Loans & borrowings (current & non current) 673 675 Equity & Reserves 1,341 1,225 o Capital expenditure during Q4 FY 13 $26 mn o Current Cash flow hedge options of ~ $480 mn [range of Rs 56 to Rs 59] All US dollar figures based on convenience translation rate of 1USD = Rs 54.52 32