Biocon Ltd

Biocon's long-term investments in world-class research and manufacturing, coupled with a robust quality culture, have created an innovative and reliable global brand, committed to delivering effective, safe, and patient-centric healthcare that is timely, equitable, and efficient.

By advancing research, increasing manufacturing scale, and expanding commercial presence, Biocon is creating a ripple effect – a "multiplier" – that benefits both patients and the planet.

The ‘Multiplier Effect' in Action

We have historically capitalized on the interconnectedness of our businesses to draw on complementary capabilities, expand our reach, and deliver value to our shareholders. Building on the shared legacy of Biocon's scientific excellence, our Generics, Biosimilars and Research Services businesses have emerged as uniquely differentiated world-class players in their respective domains.

Biocon Biologics, which had embarked on a transformational journey with the acquisition of Viatris' global biosimilars business in FY23, successfully completed the operational and organizational integration of the acquired business across 120+ countries in FY24. Consolidation of the newly acquired business has multiplied our commercial reach. We leveraged our broader and deeper commercial footprint to grow our biosimilars business with Biocon Biologics surpassing the annual revenue milestone of USD 1 billion in FY24.

Our Generics business, which is focused on creating and capturing value through vertical integration, multiplied its future growth drivers with the approval of Liraglutide, a GLP-1 peptide. The approval from the Medicines and Healthcare products Regulatory Agency (MHRA), UK, for Liraglutide, a vertically integrated product, is the first approval for a generic version of this diabetes and weight management treatment in a major regulated market.

Several years ago, Syngene embarked on a strategic journey to transform itself into a full-service partner for its clients, covering all aspects from discovery to development and manufacturing. While extending our leadership position in research services we expanded our development and manufacturing services to establish ourselves as a leading contract development and manufacturing organization (CDMO). This move leveraged our established track record in discovery, research, and development for both small and large molecules. Today, Syngene stands as a premier company with leading capabilities in biologics manufacturing, thereby addressing multiple requirements of the global pharmaceuticals industry encompassing discovery and development research.

Delivering Business Excellence

At Biocon Group, we are continually striving to refine and enhance our activities and processes with the aim of assuring the highest quality of products and services. We instituted the John Shaw Excellence Awards (JSEA) this year to evaluate, assess, calibrate, recognize, and reward strategic business units across the Group for achieving a level of excellence at par with internationally acclaimed awards such as the Deming Prize.

Championing Sustainability

By integrating ESG principles into our strategy and daily decision-making processes, we are seeking to ensure the holistic well-being of all our stakeholders and the wider ecosystem. As a responsible corporate citizen, we are contributing significantly to the overarching aim of sustainable development. In the 2023

S&P Corporate Sustainability Assessment, we improved our Global ESG Score to 63 from 52 the previous year, thus featuring on the Dow Jones Sustainability Emerging Markets Index for the third consecutive year. We also featured in the S&P Global Sustainability Yearbook 2024 for the second year in a row.

As a Company, we have chosen to use resources responsibly and cut greenhouse gas emissions and waste to reduce our environmental impact. Biocon Limited has set itself ambitious targets for reducing our Scope 1 and Scope 2 emissions, lowering freshwater consumption, and ensuring 100% recycling of waste. I am happy to report that we made good progress towards these goals this year.

Management and Board Appointments

During the year, we appointed Peter Bains as Biocon Group CEO, who is responsible for capitalizing on the synergies between the three Biocon Group entities with the aim of maximizing the combined value for all stakeholders. Peter's comprehensive understanding of the Group, coupled with his extensive global leadership experience and successful track record across the biopharmaceutical sector, will be a great value add in pursuing the Group's growth strategy.

Rekha Mehrotra Menon and Nicholas Robert Haggar joined Biocon's Board as Independent Directors in FY24. Rekha, an industry leader in technology-driven innovation, previously chaired Accenture in India. Nicholas, with over 30 years of experience, has held key roles in global pharmaceutical and healthcare enterprises. Atul Dhawan, who joined the Board as an Independent Director in May 2024, brings four decades of experience in governance, strategy, and other diverse fields.

Dividend

Biocon's Board recommended a final dividend of H0.50 per share, at the rate of 10% of the face value of the stock in FY24.

Aiming for Sustainable Growth

Debt reduction and strengthening of the balance sheet are high on Biocon's agenda. In FY24, we (Biocon Biologics) prepaid USD 250 million of the long-term debt obtained by the Company to fund the acquisition in the Biosimilars business. I would like to conclude by expressing my deep gratitude to all our shareholders for their continued trust and look forward to their support as we work together towards addressing patients' needs and enabling health equity while driving business expansion and maximizing shareholder value.

Yours sincerely,