ZY.

dUS
Wellness _ _ _ _ _ _ _ _ _ _ __
May 14, 2024

Listing Department Code: 531 335

BSE LIMITED
P. J. Towers, Dalal Street,
Mumbai–400 001

Listing Department Code: ZYDUSWELL

NATIONAL STOCK EXCHANGE OF INDIA LIMITED
Exchange Plaza, C/1, Block G,
Bandra Kurla Complex,
Bandra (E),
Mumbai–400 051

Re: Investor Presentation

Dear Sir / Madam,

Please find attached the Investor Presentation on the audited financial results for the quarter
and year ended on March 31, 2024.

Please find the same in order.

Thanking you,

Yours faithfully,
For, ZYDUS WELLNESS LIMITED
Digitally signed by
NANDISH NANDISH PRADIP JOSHI
PRADIP JOSHI Date: 2024.05.14
13:04:20 +05'30'

NANDISH P. JOSHI
COMPANY SECRETARY

Encl.: As above

Zydus Wellness Limited

Regd. Office: ‘Zydus Corporate Park’, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle,
S. G. Highway, Ahmedabad – 382481, India.
Phone No.: +91-79-71800000; Website: www.zyduswellness.com
CIN: L15201GJ1994PLC023490
Q4 FY24
Earnings Presentation
May 14, 2024

Zv.dus
Wellness
 Safe Harbour Statement ZY.dUS
Wellness

This presentation contains certain forward-looking statements including those describing Zydus Wellness’s strategies,
strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking
statements” are based on certain expectations, assumptions, anticipated developments and other factors over which
Zydus Wellness exercises no control. Hence, there is no representation, guarantee or warranty as to their accuracy,
fairness or completeness of any information or opinion contained therein. Zydus Wellness undertakes no obligation to
publicly update or revise any forward-looking statement. These statements involve a number of risks, uncertainties
and other factors that could cause actual results or positions to differ materially from those that may be projected or
implied by these forward-looking statements. Such risks and uncertainties include, but are not limited to: growth,
competition, domestic and international economic conditions affecting demand, supply and price conditions in the
various businesses in Zydus Wellness’s portfolio, changes in Government regulations, tax regimes and other statutes.
This document is a presentation and is not intended to be a prospectus or offer for sale of securities.

2
 Agenda Zv.dus
Wellness

Operating environment- Overview

Zydus Wellness: Financial performance

A leading
Consumer Wellness Business Highlights
Company in India
The Road Ahead

~
G/ucon-01.,
/ns/;Jntfnergy
( Sugar Nutralite·
\ Free·· ,aw.tau,

3
Operating Environment – Overview
& ZY.dUS
Wellness
Financial Performance
 Gradual demand progression in select consumption spaces Zv.dus
Wellness

Gradual demand uptick Mixed trend in Commodities

• Demand trend shows a gradual progression in • Commodity rates on a rising trend sequentially for
selected consumption spaces some key inputs while for others they continue to
decline
• Rural demand growth is converging with urban
• Overall low to negligible impact on gross margins
• Extended winters impacting some categories

5
 ZY.dUS
Key input rate trends towards recovery of Gross Margins Wellness

Milk Edible oils* DMH*

+3.9% vs Q4 FY22 +17% vs Q4 FY22
-33% vs Q4 FY22
-11.6% vs Q4 FY23 +3% vs Q4 FY23
-11% vs Q4 FY23
-4.3% vs Q3 FY24 +1% vs Q3 FY24
-0.4% vs Q3 FY24

Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24

Aspartame Stevia Diesel

+4% vs Q4 FY22 +2% vs Q4 FY22
-36% vs Q4 FY22 -22% vs Q4 FY23 -4% vs Q4 FY23
-24% vs Q4 FY23 -3% vs Q3 FY24 +0.5% vs Q3 FY24
-9% vs Q3 FY24

Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY22 Q4 FY23 Q3 FY24 Q4 FY24
*Edible oils includes - Refined Palm Oil and all other oils which are used as inputs, DMH- Dextrose Monohydrate
6
 Zv.dus
Gross margin recovery with right actions… Wellness

Continuous efforts to improve gross margins with calibrated price increases across
portfolio

Efficient hedging strategy for key inputs

Gross Margin % to Net Sales

Y-o-Y
+ 10 - 165 + 198 + 418 + 377 + 193
Gap
54.4%
bps 50.6%
52.4%
50.8%
47.7% 48.9%
44.9%

Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 YTD FY YTD FY

23 24 7
 Zv.dus
Segment performance snapshot Wellness

Food & Nutrition Personal Care

Q4 FY 24 - Net Sales (INR Million) --........
Nutralite
- HIE!!►

9.6% t 7,780

7,099 Growth Y-o-Y [ 6.0% ] Growth Y-o-Y [ 23.0% ]

Q4FY23 Q4FY24

FY 24 - Net Sales (INR Million) Food & Nutrition Personal Care

22,426 3.2% t 23,152 Nutralite
~

Growth Y-o-Y [ 0.4% ] Growth Y-o-Y [ 17.0% ]

FY23 FY24

8
 Zv.dus
Financial highlights for the Quarter and Financial year Wellness

Q4 FY24 FY24
INR Million YoY Growth % INR Million YoY Growth %

Net Sales 7,780 9.6% 23,152 3.2%

Total Income from Operations 7,827 9.8% 23,279 3.2%

Gross Margins 4,277 18.1% 11,895 7.3%

Gross Margins (% to Net Sales) 54.4%

t +377 bps y-o-y 50.8%
t +193 bps y-o-y

EBITDA 1,622 12.2% 3,082 -8.6%

PBT 1,544 22.2% 2,601 -10.6%

PAT 1,503 3.4% 2,669 -14.0%

Adjusted PAT* 1,503 24.7% 2,623 -9.1%

*Adjusted PAT is after eliminating exceptional items and one-time deferred tax assets impact in current year and comparable previous year

9
 ZY.dUS
Business Highlights Wellness
 Zv.dus
Leaders in 5 out of 6 categories Wellness

Strengthen “Energy” credential with new launches Strengthening core through Relaunch of the Brand
Glucon·D<
Jnstantfnergy
• Category leading brand with 99% plus brand recall • Focused on scientifically proven claims on memory and
• ~60% market share in the category concentration and enhanced chocolate taste
• With 63% more protein than regular health drink

Replacing sugar in all forms of Consumptions Building a healthier sugar brand

• India’s first low calorie sugar substitute with more than 95% ** • “Healthier Sugar” which is completely natural with 50% less
market share calories than regular sugar
• Potential to be amongst top 3 global brands • Potential to be the next sizeable brand in sweeteners
portfolio

Growing Faster than Market A Leader getting stronger

• Scrub Volume market share from 34.8% in 2018 to 44%* • Market leading brand with heritage of over 65 years
• New launches in previous years – Body lotions and Aloe Gel • Strengthening leadership with Volume market share from
29.6% in 2018 to 36.5%*

Building ‘Dairy + Spread’ portfolio

Nutralite· • Leveraged milk sourcing to expand dairy segment with
#fd&Mff,±EJ Doodhshakti Ghee in retail and institutional channels and
Pro-biotic Butter

* As per MAT March 2024 Nielsen report

** Launched I’mlite, a unique formulation of sugar blended with stevia to offer consumers 50% less calories than regular sugar
11
 Zv.dus
Building sustainable business performance Wellness

Driving the Winning in

category competitive
growth market

Building
Navigating relevance
challenges to new age
consumers

12
 Zv.dus
Driving the category growth Wellness

Driving the prickly heat powder category penetration#

l#fii+I
MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24
PHP ■ NYCIL

Driving continuous volume growth*

Volume Market share

36.5

32.7

MAT Mar'20 MAT Mar'24

*As per MAT March 2024 Nielsen report
#As per MAT February 24 Kantar World Panel Household data 13
 Zv.dus
Driving the category growth
1 _____________________w--=ellness
Recruiting new consumers for the Glucose powder Launched Glucon-D Activors –
category# An Electrolyte Engery Drink for on the go consumption
G/ucon-lJ;
V

►
+242 bps

MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24

Glucon D ■ Glucose Powder

Consumption dropped in FY 2024 due to poor seasonality

#As per MAT Feb 24 Kantar World Panel Household data

14
 Zv.dus
Driving the category growth Wellness

Driving market share

❖Widening the portfolio basket

❖Driving double digit growth at 4 year CAGR^
❖Superior product offering along with strong campaigns focused on recruiting new users
❖Scrub and peel off continues to strengthen its leadership with growth in volume market share*
r---------------------1L-_____
+676bps (Scrub)_____.~-----------------------1
I I

+558bps -108bps +227bps

2021 2022 2023 2024
-88bps -35bps +168bps
I I
I I

+45bps (Peel Off)

l----------------------~~------------~-----------------------!

""" iveryyitr very\)ltf

L.C-. fJ,.i,,L..- fl""rt,t-

*As per MAT Mar 2024 Nielsen report

^Basis internal sales for Apr-Mar 24
15
 Zv.dus
Winning in Competitive Market Wellness

Franchise continues to grow

❖Penetration# continues to grow for 3 successive years

_____.
+26BP _____.
+23BP

MAT Feb'21 MAT Feb'22 MAT Feb'23 MAT Feb'24

❖Volume offtakes* continue to grow ahead of the category

❖Growth driven by stronger campaign with 360-degree activation

*As per MAT March 2024 Nielsen report and price pack architecture interventions
#As per MAT February 24 Kantar World Panel Household data

16
 Zv.dus
Winning in Competitive Market Wellness

Nutrcllite· Consistent strong volume growth

..,511$1J,,M♦

❖Widening the portfolio basket

❖Double digit growth at 4 year CAGR^ with consistent volume growth driven by a wide portfolio and
supported by focused B2B and B2C teams

❖Continued to support the brand with digital media, e-com channel activations and consumer
sampling initiatives

^Basis internal sales 17

 Zv.dus
Building relevance to new age consumers Wellness

Efforts to leverage changing shopper behavior and target new age consumers fruitful
Channel specific innovative E-commerce exclusive packs & E-commerce saliency^
1 marketing initiatives 2 3
promotions 6.2%
5.2%
4.6%

,.,. .:..
Sf'C 3.3%
Sugar
Free· !b'fik

I
O\KK
RICll(.IJCOA

Natw,a, 1.6%

I
Digital campaign to garner
it

225g Powder
Concentrate
400g Powder
Concentrate
•
SF D’lite Chocolate range
-t Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q4 FY24

8.0%
better traction 6.7%
5.8%

3.6%

Starting llf' "1 9 9 I

bea u t:y. klcch e n ~ •
D ea l s on f as hion ,
1.0%

■
FY20
I
FY21 FY22 FY23 FY24

World’s 1st ever cookery show on Metaverse EY Scrub Visibility on SF Homepage Visibility on
Amazon Big Basket ^Basis internal company data 18
 Zv.dus
Navigating Challenges Wellness

Suglf
Free·
Offtake continues to get stronger

❖Sugar Free has maintained its number one position with a

market share of 95.9%*
rm
❖Driven by new campaign and distribution expansion,
Sugar Free Green continues double-digit growth^ since
last 12 quarters. Contribution to Sweeteners business has
grown to ~ 7%^ Change
your
❖ Launched I’mlite, a unique formulation of sugar blended sugar to
with stevia to offer consumers 50% less calories than L--->
get fitter.
regular sugar

,'
JJ

ZV~us
VWJ!nes5

*As per MAT March 2024 IQVIA report

^Basis internal sales 19
 Zv.dus
Continuing to strengthen brand leadership Wellness

Glucon·DI.
"-":::::"/ Suga~
Free™
rm I
ever,,lf h ® N_u~r~te·
~ Jnaturals
♦---- - - ---- - - ---- - - ---- - - ---- - - ► ♦-
__,;
- - ---- - - ---- - - --►

Category 0 Glucose
Powder D HFD [_____)[
Sugar
substitute
Blended
Sugar l [__)[ Prickly heat
powder
*Facial
cleansing JD ( Scrub Peel-off
l DD Fat
spread
Dairy

Mkt. Rank 1 5 1 NA 1 5 1 1 1# NA
Mkt. Share
% D59.5
D4.3
D95.9
D
NA
D35.0
D6.5 D45.6
D
80.2 DNA
D
NA
MS change
YoY
(in bps) • •`-61
• • t t -15
t -17 NA -41 +25 +369 +174 NA NA

Market share source: MAT March 2024 report as per Nielsen and IQVIA.
*Everyuth market rank 5 is at Total Facial cleansing segment which includes Face wash, Scrub, Peel-off, face masks
# Market rank as per company estimate

20
 Zv.dus
Campaigns and initiatives Wellness

Sampling drive and regional promotions to drive consumption

THAKAAN GONE. ENERGY ON. 21

 Zv.dus
Campaigns and initiatives Wellness

New TVC with Celebrity Madhuri Dixit and Sneha

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Attractive
consumer
offers for
key packs

22
 Zv.dus
Campaigns and initiatives Wellness

✓
-- ),-
( Sugar Driving consumption of Sugar Free Green Digital Campaign “New Year No Sugar”
Free~

1•Trending
#NewYearNoSugar
2,026posl~

Sugar Free D’lite Valentine Day’s promotions

23
 Zv.dus
Campaigns and initiatives Wellness

Digital initiatives and Print campaign to drive Nutralite dairy and spread range

~ -=---=--.. . . . ----
.... -.- ·-
··- ---•· ---
DelhiTi-~~-
--___·--------
·-..,..__ ---
--- ---· Istill live
life on
myown
terms:
Konkona
--.--
··--..,..._______
----·---w-----_
---------
____
---------
·---·--------
-·-------
----- :-.::::=:.:=
-=-~-----::..~::
----

24
 Awards and Recognitions Zv.dus
Wellness

HR Team won 1st prize in the Private Nycil won BRONZE for Sugar Free D’lite has won “Product of
Sector Manufacturing category at “Best Campaign in Personal Care” the Year Gulf 2024” Award in the
33rd National Awards for Innovative category at DIGIES Awards 2024 Sugar Free Snacks category for GCC
Training Practices region

25
 Zv.dus
Continued momentum in International business.. Wellness

UAE, Bahrain, Qatar, Kuwait, Myanmar, Malaysia, Taiwan,

Kingdom of Saudi Arabia, Pakistan, Sri Lanka, Bangladesh,
Oman, Lebanon Nepal, Bhutan, Maldives, Hong ❖ Sugar Free franchise and Complan
Kong
constituting ~ 90% of the overall business
❖ Nigeria business remained subdued due
to macro-economic issues, however
Middle east business continues to do well
0
❖ Top 5 markets constitute ~80% of the
business
❖ Launched new products expanding Sugar
Uganda, Tanzania, Kenya, r· •n•n•n•n••·······················································
Nigeria, South Africa, Australia, New Zealand Free D’lite and Complan portfolio
Mauritius, Zimbabwe, I i
Ethiopia

Targeting 8-10%
of revenues in
next 4 to 5 years

26
 Zv.dus
Environmental, Social and Governance Wellness

·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-

• • Improved ESG Score and ranking in Corporate Sustainability Assessment by

S&P Global (Dow Jones Sustainability World Index)
-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·-·--'
I
I

• ESG FY 2023
Y-o-Y
increase
[ Total Score ][_ _][ 58 53% t ]
[ Environment ] [ 49 ] [ 75% t ]
[ Social ] [ 63 ] [ 50% t ]
- - [
Governance 63 ] 47% t
27
 ZY.dUS
The Road Ahead Wellness
 Zv.dus
Three Pillars to drive growth – staying on course Wellness

~
Accelerate Growth of Build International Presence Significantly Grow Scale
Core Brands
Innovations to focus on portfolio Build scale in international Open to bolt-on acquisitions
diversification and expansion business by focusing on SAARC, at the right time
with an aim to recruit new MEA and SEA and suitable
customer innovations to grow them further Growing the customer base
with increased penetration
Differentiated propositions Enter new markets with relevant
supported by strong GTM offering

29
 Zv.dus
The building blocks Wellness

Category Building Leading Route to Market Digital backbone to decision Inorganic play for gap
Volume led focus Plan to enhance distribution making filling
Recruit new consumers infra and direct coverage Digitizing the whole value Proactively look for Bolt-
over next 3 years chain – Sourcing to on acquisitions
Innovation to contemporize/
Invest in capabilities; for fulfillment Focus on international
differentiate the offerings
converging Offline & Online Work with downstream and opportunities in top
Build online-first portfolio trade upstream partners for data geographies of interest
Engage shoppers at multiple sharing
touch points
Build capability around
predictive analysis

30
 Zv.dus
Building Route to market to adapt shifting channel mix Wellness

• Direct reach ~6 lakhs stores

• Channel mix shift towards expansion across sub channels,
• Implementation underway for
MT+Ecom from 17.5% (FY22) to plan to take it to ~7 lakhs in the
dashboarding of key KPI’s as

Building future ready

20.5% (FY24) coming quarters
enablers for real time decision

Traditional Trade
Organized Trade

capabilities in S&D
making
• E-com continuing good growth, • Plan to take overall availability of
contributing to 8% of sales in FY24 our products from current 2.9 *
• Digitization till last mile sales
vs 5.5% in FY 22 million stores to 3.5 million as
reported by Nielsen
• Reduced cost to serve through
• Leverage changing shopper
distributor disintermediation in
behaviour by investing in building • Rural distribution continues to be
organized trade
stronger presence and efficient opportunity for growth. Currently
spends on visibility and contributes to 50% * of total
Promotions stores present

*As per MAT March 2024 Nielsen report

31
 ZY.dUS
Appendix Wellness
 Zv.dus
Financial Summary – P&L Wellness

INR Million Q4 FY24 Q4 FY23 YoY Gr. % YTD FY24 YTD FY23 YoY Gr. %
Net Sales 7,780 7,099 9.6% 23,152 22,426 3.2%
Total Operating Income
7,827 7,130 9.8% 23,279 22,548 3.2%
Gross Contribution 4,277 3,623 18.1% 11,895 11,088 7.3%
Gross Contribution Margin-(%
of net sales) 54.4% 50.6% 50.8% 48.9%
HR Cost 536 435 23.2% 1,934 1673 15.6%
Advertisement Expenses
943 666 41.6% 2,988 2587 15.5%
Other Expenses 1176 1076 9.3% 3,891 3456 12.6%
EBITDA 1,622 1,446 12.2% 3,082 3,372 -8.6%
EBITDA Margin 20.7% 20.3% 13.2% 15.0%
PBT 1,544 1,335 15.7% 2,743 3,010 -8.9%
Exceptional items 0 72 -100.0% 142 101
PBT (after Exceptional items)
1,544 1,263 22.2% 2,601 2,909 -10.6%
PAT 1,503 1,453 3.4% 2,669 3,104 -14.0%
PAT Margin 19.2% 20.4% 11.5% 13.8%
Adjusted PAT* 1,503 1,205 24.7% 2,623 2,885 -9.1%
Adjusted PAT Margin 19.2% 16.9% 11.3% 12.8%
*Adjusted PAT is after eliminating exceptional items and one-time deferred tax assets impact in current year and comparable previous year
33
Zydus Wellness Limited
Regd. Office: Zydus Corporate Park, Scheme No. 63,
Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi
Circle, S. G. Highway, Ahmedabad – 382481, India.
CIN: L15201GJ1994PLC023490

+91-79-71800000

www.zyduswellness.com

Zv.dus
Wellness