Abbott India : 2022-23 Annual Report

LEADING

TO MAKE A DIFFERENCE

Our purpose at Abbott is to help people live more fully through good health. We do that through our life-changing products, solutions, and technologies. We strive each day to make a difference by creating a healthier, more resilient world and a sustainable future through all that we do.

Being at the forefront of healthcare evolution, we understand that true leadership is making a difference in the lives of the people we serve, and it goes beyond business success. We leverage our industry leadership to drive meaningful change by proactively driving a positive and lasting impact in the communities we serve.

Through our unwavering focus on breakthrough innovations, we strive to redefine the boundaries of possibility and explore new frontiers in healthcare management. We empower healthcare professionals to deliver quality care and patients to access quality treatment throughout their health journey.

We care about and value our employees. Our common purpose and mission is to provide our workforce with the opportunity to change people's lives for the better while living their best lives personally and professionally. We do this by offering development opportunities and differentiated benefits that provide security for themselves and their families.

We lead with integrity and purpose to continue strengthening our legacy. We are aware that our actions today will have an impact tomorrow.

Therefore, we are continuously working towards shaping the future of healthcare that allows us to make a difference in the lives of all our stakeholders.

Contents

About Us

1. Abbott India at a Glance

1. Product Profile

1. Our Investment Case

1. Chairman's Message

1. Managing Director's Message

Our Performance

1. Key Performance Indicators

1. 10 year Financial Highlights

1. Our Business Model

Inspiring Positive Change

1. Customer Centricity

1. People

1. Community

1. Environment

Governance

1. Ethics and Compliance

1. Board of Directors

1. Senior Leadership Team

79TH

ANNUAL GENERAL MEETING

Statutory Reports

36 Board of Directors' Report and Management Discussion and Analysis

60 Business Responsibility and Sustainability Report

90 Corporate Governance Report

Financial Statements

1. Independent Auditor's Report

1. Balance Sheet
2. Statement of Profit and Loss
3. Statement of Cash Flows

1. Statement of Changes in Equity
2. Notes to the Financial Statements

177 Notice

Date: August 9, 2023

Time: 9.30 a.m.

Through Video-Conferencing (VC)/ Other Audio-Visual Means (OAVM)

Abbott India Limited

ABBOTT INDIA AT A GLANCE

MAKING BETTER HEALTH POSSIBLE EVERYDAY

Abbott India Limited strives to make world-class quality healthcare accessible to millions of Indians. We combine global expertise with local product development knowledge to address unmet and evolving needs of the Indian healthcare market. With a focus on innovation and quality, we are redefining the healthcare landscape and empowering individuals to live

FY 2022-23 Highlights

*Growth over previous year.

Therapeutic Areas

their best lives.

Abbott India Limited, a subsidiary of Abbott Laboratories, USA, is known for its high-quality trusted medicines. We specialize in various therapeutic areas including Women's Health, Gastroenterology, Central Nervous System, Metabolics, Multi-Specialty, and Vaccines.

Women's Health

We offer specialized, tailored solutions to address the key health concerns of women in India across life stages like menarche, pregnancy, and menopause.

Metabolics

We specialize in treating chronic metabolic diseases like hypothyroidism, driving advancements in metabolic health through specialized therapies, improved

diagnostics, and meaningful scientific collaborations.

Abbott's citizenship programs and investments are guided by two of India's most pressing social challenges which are lack of access to quality and affordable healthcare and inadequate education infrastructure and resources to prepare the workforce of tomorrow. We aim to address these through scalable and sustainable solutions. With a dedicated and talented workforce, we ensure the availability of our medicines to all those who depend on them.

Gastroenterology

We offer a comprehensive range of innovative gastrointestinal products for the upper and lower gastrointestinal tract and liver conditions. Along with products, we also offer beyond-the-pill solutions.

We also have key OTC (Over The Counter) (antacid) products in various formats (liquid, gel, powder, On the Go pack) in this portfolio.

Central Nervous System

We provide differentiated solutions for central nervous system diseases such as vertigo, epilepsy, migraine, and depression with the goal of minimizing their impact on life.

Multi-Specialty

Our products in this portfolio help address various health conditions like headaches, sleep disorders, and nutritional deficiencies. We provide specialized solutions for pain management, nutritional supplements, and vitamins in different formats.

Vaccines

Focusing on effective prevention, we offer a wide

range of trusted immunology products for Influenza,

Typhoid, Diarrhea, Japanese Encephalitis, and Hepatitis A.

Abbott India Limited

OUR INVESTMENT CASE

ADDING VALUE, DELIVERING RETURNS

New Product Launches

We continuously identify the evolving gaps in healthcare and accordingly, diversify into new therapeutic areas to introduce new products that specifically address those unmet needs.

Focus on International Business

We have established operations in these four countries: Nepal, Sri Lanka, Maldives, and Bhutan. We are actively expanding our business in these neighboring countries and increasing our footprint to continue to serve people who rely on our quality products.

At Abbott India, we prioritize purpose, profitability, and progress equally to achieve sustained success. Our proven scientific expertise, comprehensive and diversified solutions, and attractive value proposition for all our stakeholders provide a solid foundation for market-beating growth and high-risk-adjusted returns.

During FY 2022-23, we introduced 10 new products in various therapeutic areas, Women's Health, Gastroenterology, Metabolic, and Multi-Specialty.

Empowered Field representatives

We have a highly dedicated and passionate sales force who form over 80% of our total workforce. They engage with the medical fraternity and are committed to making a positive impact on the ground. Additionally, our continuous upskilling culture and development opportunities and effective digital tools enable and empower them for seamless and real-time engagement with stakeholders.

Diversified Product Portfolio

We provide a wide variety of products to meet diverse health needs. Our comprehensive portfolio covers multiple therapeutic categories such as Women's Health, Gastroenterology, Neurology, Thyroid, Pain Management, Vitamins, and Vaccines.

High-Quality Manufacturing

Our state-of-the-art manufacturing plant in Goa enables us to deliver world-class quality and trusted products, which act as a key differentiator and provide a competitive edge in building trust- based relationships with doctors and patients.

20.1%

of Net Sales is manufactured in Goa

Robust Financials

Our business model has continuously demonstrated its strength by delivering robust growth year after year. We have delivered double- digit EBITDA and net margins consistently, thus demonstrating our financial strength, resulting in sustainable value creation for shareholders.

8.8%

Revenue from Operations 10-year CAGR

15.7%

EBITDA

10-year CAGR

Over the years of serving patients in India, we have created a robust network of trusted partners. Our valued partnerships include our distributors, institutions, and healthcare professionals. The recent pandemic resulted in some unprecedented ways

to come together and deliver results with speed and scale. We continue to build our network of trusted partners to maximize our value offerings.

Widespread Robust Distribution Network

We take pride in building a resilient and highly effective distribution network. With a vast network of stockists and a widespread presence amongst millions of retailers, we ensure that our quality products and solutions reach our valued customers

promptly and efficiently.

This extensive distribution network connects us with our patients, enabling us to provide them with the care and support they need. Moreover, it acts as a strong feedback channel, allowing us to gather useful insights from our retailers and customers regarding

Industry-Leading Growth

We have consistently delivered above-market growth. Our top 15 brands are market leaders in their respective segments, accounting for over 80% of our revenue.

*Source: IQVIA - MAT March 2023

16.9%

PAT

10-year CAGR

15.0%

Book Value per Share 10-year CAGR

our products and solutions.

8,100+ stockists enabling us to reach a wide customer base.

3,100+ sales colleagues are making a difference by consistently engaging with the medical fraternity.

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