Investor Presentation April 2015 BSE CODE 524558 NSE

Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements", These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Investor Presentation | Neuland Labs | www. neulandlabs. com 2

Company Information Investor Presentation | Neuland Labs | www. neulandlabs. com 3

Company Overview • • • 30+ 75+ Years of excellence Products developed 78 80+ 400+ Mn USD Revenue for FY 14 Countries of business Regulatory Filings 1500+ Experienced professionals including scientists Headquartered in Hyderabad, India with two overseas office in USA and Japan Two Business verticals : APIs and Custom Manufacturing Solutions(CMS) Two manufacturing facilities with collective capacity of 525 KL One ~3400 sqm Research and development center with 180+ scientists and 60 hoods, as part of Neuland Pharma Research Pvt. Limited, an affiliate of NLL Presence in 10 diverse therapeutic categories including cardiovascular , central nervous systems , anti-invectives, anti-asthmatics , anti-fungal , anti-ulcerants and anti-spasmodic Over 75% revenues by exports and regulated markets contributing bulk of it Investor Presentation | Neuland Labs | www. neulandlabs. com 4

The Journey 2011 2004 USA Operation Large portfolio of APIs 2015 Diversified 2014 Product Mix (DPM) Model High value Shift niche strategy launched 1997 2007 1986 1984 First API sale of salbutamol 1994 First FDA Audit Japan Operation Neuland goes public Strategic Manufacturing deal with Mitsubishi group Multiple audits passed with no failures Incorporated Investor Presentation | Neuland Labs | www. neulandlabs. com 5 2018 DPM mix

Board and Key Management Dr. D. R. Rao Chairman and Managing Director & Promoter M. Sc. from Andhra University, Post Graduate Diploma in Technology – IIT Kharagpur Ph. D. in Organic Chemistry -University of Notre Dame, U. S. A. Has held senior positions in R & D, production and quality assurance at Glaxo India Member of Royal Society of Chemistry Mechanical Engineer MBA in Corporate Finance - University of Notre Dame, U. S. A. Earlier Production Group Leader in Cummins Inc. U. S. A. D Saharsh Rao Director & President – Contract Research D Sucheth Rao Executive Director & Chief Executive Officer Engineering Graduate Masters in MIS - Weatherhead School of Management, Cleveland, OHR MBA - University of North Carolina, U. S. A. Previous experience: Managing Director and Executive Vice-Chairman at Glaxo India Ex-President of Organization of Pharmaceutical Production of India Humayun Dhanrajgir Non-Executive Director Investor Presentation | Neuland Labs | www. neulandlabs. com 6

Board and Key Management Dr. Christopher M. Cimarusti Non-executive Director Ph. D. in Organic Chemistry - Purdue University, U. S. A. Post Doctoral Research - Columbia University, U. S. A. Former Sr. Vice President, Pharmaceutical Development - Bristol-Myers Squibb Professor of International Management, Fuqua School of Business, Duke University, Durham, NC, USA. On the editorial board of several management journals. P V Maiya, Non-Executive Director Dr. Will Mitchel Non-Executive Director Previous experience: Helped set up ICICI Bank and retired as its CMD Managing Director at Central Depository Services (India) Limited Previous experience: Nominee Director of SBICAP ventures , SBICAP securities, SBI Global factors, SBI Capital market and Suzlon energy. Director on the board of Vijaya Bank. Investor Presentation | Neuland Labs | www. neulandlabs. com 7 Ms. Bharati Rao Independent Director

Manufacturing Strength Pashamylaram, Hyderabad Bonthapally, Hyderabad Establishment Size and capacity Key Products/Activitie s Other Operational Details R&D Facility, Hyderabad • Started operations in 1986 • Started operations in 1994 • Started operations in 2008 • • • Built up area of 45, 325 sq mtr. Plant capacity : 181. 490 KL • • Built up area of 36, 800 sq mtr. Plant capacity : 310, 200 liters • Built up area of 3382. 5 sq mtr. • • • Ciprofloxacin Hcl Ranitidine Entacapone Prostaglandins NCE APIs Intermediates & RSMs • • Process Investigation New Products Development Peptides Contract Research and Manufacturing Services • • Employee strength: 345 US FDA, EDQM & PMDA approved plant • • Employee strength: 170 Fume Hoods: 60 Ramipril Mirtazapine Enalapril maleate Sotalol Hcl Levetiracetam Levofloxacin Olanzapine • • • Salmeterol Salbutamol NCE APIs Peptide APIs Vitamin D 2 analogues Employee strength: 399 US FDA, EDQM & PMDA approved plant Investor Presentation | Neuland Labs | www. neulandlabs. com 8

Business Mix Revenue by Verticals Active Pharmaceutical Ingredients(APIs) • • • API Heritage of 30 years 2 US FDA and EU GMP compliant manufacturing facilities Collective capacity with 525 KL Flexible 100 g to hundreds ton capacity Non competitive advantage (do not compete in finished formulation) World wide customer base 80+ countries Project management systems underpin CRM EHS Record 75 APIs across 10 diverse areas Custom Manufacturing Solutions(CMS) CMS 15% • • Ciprofloxacin HCl, Mirtazapine, Ranitidine HCl, Enalapril Access technology platform to optimized processes to streamline Maleate, Ramipril, Sotalol HCl, Olanzapine, Ipratropium Bromidet product pipeline , Itraconazole and Salmeterol Experienced technology transfer from process research to commercial-scale Peptide manufacturing facility Expertise in manufacturing deuterium exchanged APIs Generic drug production capabilities Vitamin D 2 analogues Analytical development and Regulatory/QA support • • • 9 API 94% API 97% FY 13 FY 12 API 85% FY 14 % Revenue by Territory Japan 4% North America 15% India 29% Investor Presentation | Neuland Labs | www. neulandlabs. com CMS 6% CMS 3% ROW 8% Europe 44%

Regulatory Filings and IPR Regulatory Agency No. of DMFs registered USFDA 48 Canada 23 EU 378 EDQM (COS) 19 Japan 5 Korea 9 Others (ROW) 84 Total 566 Investor Presentation | Neuland Labs | www. neulandlabs. com 10

Industry structure and key drivers API Industry’s Share in Global Contract Manufacturing Industry Key Drivers • Increased demand for biopharmaceutical manufacturing services • Complex and potent drug development will Finished Dosage Formulation s; 33% Forecast lead to higher demand of High Potency Active Pharmaceutical Ingredients which 2022 command a higher price • Reformulation of drugs nearing patent APIs; 67% expiry and for companies looking to differentiate commoditised products Market Projections through 2022 - Global API Industry • The pharmaceutical industry is keen to cut spending in many areas, including drug production • Pharmaceutical companies will look to take advantage of low cost manufacturing 0 API($bn) FY 14( Est) 37. 25 FY 15(P) 42. 75 FY 18(P) 48. 03 FY 20(P) 53. 2 opportunities available in India FY 22(P) 58. 66 Data Source: Vision Gain. com Investor Presentation | Neuland Labs | www. neulandlabs. com 11

Key Financial Indicators Investor Presentation | Neuland Labs | www. neulandlabs. com 12

Financials CURRENT RATIO 0. 9 500 Figures in INR Cr 400 450 464 466 100 398 300 0. 8 2011 2012 50 2013 2. 8 2. 5 100 Sales EBITDA Net Profit FY 11 398 50 5 FY 12 450 48 2 FY 13 464 61 14 FY 14 466 73 27 2014 DEBT TO EQUITY 1. 9 0 0. 9 1. 5 0 2011 2. 1 2012 2013 FIXED ASSET TURNOVER 2. 7 2. 5 2014 2. 8 • Steady growth coupled with increase in profitability margins • Focused effort to rationalize debt levels 2011 Investor Presentation | Neuland Labs | www. neulandlabs. com 2012 2013 2014

Current Year Performance- 9 MFY 15 Business Update Figures in INR Cr Key Developments • Rights issue completed on October 30 th Sales • Successful completion of regulatory audits from US, Mexico, Brazil, Korea during first 6 months EBITDA Q 2 FY 15 Q 3 FY 15 121 108 15 13 PAT 5 2 EPS 6. 7 2. 2 Margins EBITDA PAT 13% 12% 4% 2% Quarter on Quarter % change Investor Presentation | Neuland Labs | www. neulandlabs. com 14 Sales -11% EBITDA -13% PAT -63% EPS -67%

Future Growth Strategy Investor Presentation | Neuland Labs | www. neulandlabs. com 15

Business Strategy Add new therapies and products having high margins N ew g eo gr ap hi es ew n on ts s uc cu od Fo Pr Exports higher volumes to Japan and other regulated markets Future Strategy ne si Bu l a tu th c w e l el Gro t In e al Sc ss Add more capacity and consolidate existing with a profitable product basket lth a we File DMFs, Patents and grow intangibly. Create an organization that results in value for all stakeholders. Investor Presentation | Neuland Labs | www. neulandlabs. com 16

Focus on new products 30% 15% 2018 2015 70% 20% Faster Growth with high volume APIs Higher margins with complex molecules APIs Bring sustainability for future Investor Presentation | Neuland Labs | www. neulandlabs. com 17 Increased Penetration in the CMS space 50%

Future Product and market share mix World Market Share 100% Actual FY 14 90% 80% 70% 8 products > 20% MS 4 products > 40% MS 6 products > INR 20 Cr Total No. Of Products: 33 60% 50% 40% 30% 20% 10 20 30 40 50 60 20 products > 20% MS 12 products > 40% MS 17 products > INR 20 Cr Total No. Of Products: 43 60% 50% 0 Projected for FY 18 0 70 10% 0% 0% 20 40 60 80 100 Revenue (INR Crores) Investor Presentation | Neuland Labs | www. neulandlabs. com 18

Growth in CMS • • 11 development labs 55 fume hoods mg to gm scale Analytical R&D Manufacture Scale up Develop • • • 2 kilo labs c. GMP pilot plant with two production areas 0. 5 -50 kg batch size • • • 2 manufacturing sites 11 diverse production blocks Kg to ton scale Scale the revenue growth in CMS from 15% to 30% Investor Presentation | Neuland Labs | www. neulandlabs. com 19

Investment Rationale Horizontal Growth § Continued expansion as preferred API source world wide § Enhance manufacturing capacity to sustain high growth in APIs and CMS § Increased number of new products with focus on market share on existing products through process improvement and capacity utilization Expansion of Geography § Build on platform created in high margin regulated markets such as Japan § Focus on expanding the product basket and entering newer markets to have a dominant position by FY 18 New products with High margins Intellectual Growth Revenue Mix § Focus on high margin, niche and complex APIs belonging to therapies such as anti-psychotic, anti- asthmatic etc. § Increase contribution of margin accretive Custom Manufacturing Solutions (CMS) Intellectual Wealth § Portfolio of 65 products with 400+ DMFs to meet customer needs across multiple therapeutic areas § Accelerate to > 125 products and 150+ patents to ensure leadership in the API industry driven by innovation Investor Presentation | Neuland Labs | www. neulandlabs. com 20 New Geographies

For further information contact: Bhamidipati Sarada Company Secretary +91 40 3021 1685 ir@neulandlabs. com Ankit Gupta Christensen +91 22 4215 0210 ankitgupta@christensenir. com

Shareholding Pattern as on 31 st December 2014 Others, 45. 8% DIIs, FIIs, 1. 1% 1. 5% Investor Presentation | Neuland Labs | www. neulandlabs. com Key FII / DII holders Promoters, 51. 7% FII: ICGQ DII: Reliance Capital Trustee and L&T