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Pfizer Ltd.

BSE: 500680 Sector: Health care
NSE: PFIZER ISIN Code: INE182A01018
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P/E 34.72
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OPEN 4023.05
CLOSE 4014.45
VOLUME 861
52-Week high 4800.00
52-Week low 3983.40
P/E 34.72
Mkt Cap.(Rs cr) 18,303
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Pfizer Ltd. (PFIZER) - Director Report

Company director report

Including Management Discussion and Analysis Report

To the Members

Your Directors take pleasure in presenting this 71st Annual Report alongwith the Audited Financial Statement for the financial year ended March 312022. TheCompany operates only in one business segment that is "Pharmaceuticals" andthis Report covers its Pharmaceutical business performance.

CHAIRMAN OF THE BOARD

Your Directors wish to acknowledge the long and illustrious association Mr. R. A. Shahhad with your Company as a Director on the Board from 1965 and as the Chairman of theBoard from December 7 1999 till February 1 2022. During his tenure your Companybenefitted tremendously in its strategic decisions from the wealth of his knowledge acrossa spectrum of areas including Corporate laws merger & acquisitions pharmaceuticalpolicy and pricing.

Mr. Shah guided your Company navigating through a significantly transforming operatingenvironment over past five decades and served as a force of continuity and stability in anindustry characterized by rapid changes. By virtue of his long standing leadership on theCompany's Board Mr. Shah has been a mentor to a number of Pfizer leaders.

Your Directors wish to record their appreciation for the most valuable contributionsmade by Mr. Shah.

Members are aware that the Board of Directors appointed Mr. Pradip Shah as theChairman of the Company with effect from February 3 2022. Mr. Pradip Shah holds an MBAfrom the Harvard Business School and is a Chartered Accountant and Cost Accountant. Mr.Pradip Shah ranked 1st in the Chartered Accountancy examination. Mr. PradipShah is a Director on the Board of several reputed companies and is also a member ofvarious prestigious committees/commissions. Mr. Pradip Shah is on the Board of the Companysince 1999.

DIVIDEND

The Board of Directors at their Meeting held on May 20 2022 recommended a dividend of'35/- (350%) per equity share for the financial year ended March 31 2022. The dividendpayout will be '160.12 Crore including Tax Deducted at Source.

FINANCIAL HIGHLIGHTS

Particulars Year ended March 31 2022 Year ended March 31 2021
Net Sales 2530.28 2190.04
Other Operating Income 80.71 48.51
Revenue from Operations 2610.99 2238.55
Other Income 62.65 81.12
Profit Before Tax 772.89 668.72
Income Tax Expense 160.33 171.11
Profit for the year 612.56 497.61
Total other 7.17 (0.96)
comprehensive income (net of tax)
Total comprehensive income for the year 619.73 496.65

Your Company's sales for the financial year ended March 31 2022 stood at '2530.28Crore as compared to '2190.04 Crore in the previous year which represents a growth of15.54%. The sales for the year under review are not strictly comparable with that of theprevious year on account of the impact of COVID-19.

Profit before tax for the financial year ended March 312022 was '772.89 Crore ascompared to '668.72 Crore in the previous year. The profit after tax stood at '612.56Crore for the financial year ended March 31 2022 as compared to '497.61 Crore in theprevious year recording a growth of 23.10%.

ECONOMIC OVERVIEW

Following a contraction of 7.30% in 2020-21 the Indian economy was expected to grow by8.00-8.50% in 2022-23. Optimism about strong economic recovery was tempered during thisfiscal towards the end of 2021 with the emergence of second wave of COVID-19 and theRussia- Ukraine crisis along with the pre-existing challenges like inflation supplyshortages etc. IMF corrected India's GDP growth forecast for the year 2023 down to 8.20%on account of weak domestic demand coupled with inflationary pressures owing to theongoing geopolitical crisis.

Inflation remains to be a key challenge for economies around the world and India is noexception. A large part of the surge in inflation was earlier driven by high food pricesfollowed by fuel prices that started rising in 2021. Rising prices of commodities and rawmaterials globally have also seeped into the economy. However the consumer confidence inIndia has seen gradual improvement with the easing of pandemic restrictions. The impact ofpandemic severely restricted Indian consumers' spends over the past couple of years. Thereappears to be a resurgence in the consumer spends which augurs well for the economy.

In the Union Budget 2022-23 the government has allocated ' 86200 crore to theMinistry of Health and Family Welfare in comparison to '73932 crore in the previousyear an increase of 16.55%. This is primarily driven by increased allocation tocentrally-sponsored public health schemes to continue building sustainable healthcareinfrastructure and ensure system preparedness to handle increasing healthcare needs.

India's gross tax collection for the financial year 2021-22 has beaten expectationswith total tax collection touching '27.07 lakh crore. Higher capital spending oninfrastructure and asset-building projects are likely to boost growth multipliers in themedium term.

CURRENT HEALTHCARE AND PHARMACEUTICALS ENVIRONMENT

Indian Pharmaceutical Industry Market Overview:

The Indian Pharma Market (IPM) with turnover of '185498 Crore for the period of April2021 - March 2022 has registered a robust growth of 18.2% against single digit growth of4.3% in the previous year. Post recovery from the second COVID-19 wave and with theimprovement in patient footfalls the growth was primarily driven by volumes whichcontributed 9.7% followed by price at 4.3% and new products introductions at 4.2%.Multinational companies hold about 18% market share and have grown at 11.9%.

Therapeutic Growth:

The acute care segment with a growth of 21.7% has outperformed Chronic segment's 12.6%growth. The acute therapy areas of Anti-infectives with 35% growth Respiratory with 54.2%growth and Pain with 21.4% grew at a faster pace which propelled performance of the Acutesegment.

Market Prognosis:

The Indian Pharmaceutical Market is forecasted to grow at 9.2% CAGR between 2021 and2026 to reach '295084 Crore by 2026. One of the growth drivers for the pharmaceuticalindustry during the forecast period is expected to be partnerships and co-marketingagreements between Indian and multinational companies thereby benefitting both originatorand local partners. Such alliances will drive rapid and broader market penetration for newbrands and an increase in sales for more established products.

Expansion of e-pharmacy and chain businesses.

E-pharmacy sales which were already rising rapidly saw a strong surge in demandduring the second wave of the pandemic registering more than 25% growth in 2021. Therapid growth of the sector is encouraging investments from large businesses andconsolidation of smaller players.

Increase in health insurance coverage. The central government's Ayushman Bharat -Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) health insurance scheme will be a key driverof healthcare access and improve health outcomes over the forecast period. The 'Aap KeDwar Ayushman' campaign launched in February 2021 to facilitate door-to-door beneficiarymobilization brought over 40 million people under the coverage of the scheme.

Constraints:

Wider implementation of trade margin caps. Following trade margin caps and price cutsfor non-scheduled cancer drugs in 2019 the National Pharmaceutical Pricing Authority hadindicated that it intends to apply trade margin caps to a larger number of non-scheduleddrugs. While the COVID-19 pandemic delayed the price control initiatives in theshort-term implementation of TMR led price caps is expected to re-emerge in the medium tolong term. Pfizer supports the principles of Trade Margin Rationalization with dueconsideration to certain technical aspects such as exclusion of non-commercial andnontrade supplies in the design and application of the pricing formulae.

Expansion of DPCO price controls. Originally scheduled for introduction in 2020 theNational List of Essential Medicines (NLEM) update was delayed owing to the COVID-19pandemic. A new version of the NLEM list is now anticipated in 2022 with a possibility ofexpansion of the number of drugs included in price controls.

The COVID-19 pandemic. The pandemic had a negative impact on certain therapeutic areassuch as non-covid vaccines and other chronic segments due to reduced access to healthcarefacilities. While this access has improved again following the relaxation of pandemic-linked restrictions; the continuing risk of increase in COVID infection rates due tocurrent and new variants remains a potential challenge for the future.

AN OVERVIEW OF THE PHARMA OPERATING ENVIRONMENT

Mitigating the impact of COVID-19 on public health and ensuring availability ofvaccines to the population continues to be a major priority for the Government. Inaddition to COVID-19 management the Government has also been focusing on Research andDevelopment promotion of indigenous drugs/medicines through an enabling policy frameworkand creation of a consumer- friendly pricing regime for the non-scheduled drugs.

Department of Pharmaceuticals (DoP) released a draft R&D Policy in October 2021 tocatalyze research & development and innovation in the pharmaceutical sector which aimsto simplify regulatory processes to enable rapid drug discovery explore mechanisms toincentivize private sector investment in research enhanced academia- industrycollaboration among others. It is envisaged that such a policy ecosystem will give a boostto innovation while also ensuring affordable medicines for all. It is pertinent to notethat the extent to which Government is successful in creating a viable R&D ecosystemwill depend on factors such as autonomy to institutions for collaborating with industrypreserving strong Intellectual Property (IP) protection funding from the Governmentstreamlining regulatory approvals and aligning India's regulatory systems with globalstandards and systems. Your Company has been highlighting the need for these interventionsin interaction with the Government and through industry forums.

Your Company has also been engaging with the Government on the need for streamliningand expediting regulatory approval for new drugs with support from the Drug Regulators.While the process of drug approvals is well defined there are often delays in theapproval processes which impacts the planning and launch of new drugs. Your Company hasbeen advocating for a faster and more predictable approval process with defined timelinesfor each stage of the regulatory approval process. This would ensure timely access ofdrugs to needy patients while also facilitating ease of doing business for the industry.

The drug pricing regulator- National Pharmaceutical Pricing Authority (NPPA) initiatedconsultation with the industry in May 2022 for finalizing the Trade Margin Rationalization(TMR) regime. The intent of the Government behind introducing TMR is to address cases ofhigh trade margins in sale of non-scheduled drugs. Your company in principle supportsimplementation of TMR while also highlighting the need for certain checks and balancessuch that non-commercial/non-trade supplies are excluded for the purposes of determiningtrade margins.

The PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) was approved by theCabinet in September 2021 with an outlay of about '64180 crore over six years (till FY25-26). The Scheme aims to develop capacities of health systems and institutions acrossthe continuum of care at all levels viz. primary secondary and tertiary while preparinghealth systems in responding effectively to the current and future pandemic/disasters.Given the focus on capacity building along with development of an IT-enabled diseasesurveillance system through establishment of surveillance laboratories at various levelsyour Company believes such initiative is an important step towards developing theresilience of the healthcare system while addressing the challenges arising out of healthemergencies in future.

NITI Aayog in October 2021 released a report on 'Health Insurance for India's MissingMiddle' highlighting the absence of insurance coverage for a sizeable chunk of ourpopulation. The bottom 50% of the population is provided comprehensive hospitalizationthrough the Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana 20% is covered throughsocial and private voluntary health insurance while the remaining 30% is not covered underany health insurance scheme. The report stresses on developing a low- cost insurancesolution for the missing population. Your Company supports such an approachimplementation of

which would ensure that no patient suffers on account of lack of access to innovativeand breakthrough medicines and vaccines.

Your Company is committed to innovation and supporting launch of start-ups fromprototype to market launch. Launched in collaboration with close to 20 partners from theHealthcare ecosystem the Pfizer INDovation program aims to accelerate incubation forhealthcare start-ups while making the products/services market ready. With two focusedthemes of oncology and digital health this year a grant of up to '65 lakhs with two-yearsof incubation across IITs and other technology centers will be provided. This initiativeis also providing other forms of support such as customized 24-month innovation ventureacceleration market-access and scale up advisory and mentoring and follow-on fundingopportunity.

Regulatory system strengthening: Overall the operating environment in India wasdefined by an immediate and short-term focus to resolve COVID-19-related bottlenecks andminimise disruption of manufacturing supply chains and availability of medicines. Manyflexibilities were adopted during the period to ensure the availability of the essentialmedicines hand sanitizers as well as protective equipment including masks PPE Kits alongwith fast- track processing of applications for clinical trials and new drug includingvaccines for COVID-19. CDSCO continue to engage at international platforms forstrengthening the regulatory system and supporting the innovation ecosystem in thecountry.

TRANSFER OF UPJOHN BUSINESS

Pfizer Inc. USA had announced on July 29 2019 that it had entered into a definitiveagreement to combine its Upjohn Business which consists off-patented branded and genericestablished medicines with Mylan N.V. thereby creating a new global pharmaceuticalcompany viz. Viatris Inc. Your Company had thereafter on September 30 2021 entered intoa business transfer agreement (BTA) with Mylan Pharmaceuticals Private Limited (Mylan)subsidiary of Viatris Inc to transfer certain primarily off-patent branded and genericestablished medicines business comprising of six brands which included Lyrica ViagraCelebrex Amlogard Daxid and Dilantin along with related business assets and liabilities(Upjohn Business) as a going concern to Mylan for a consideration of '180.48 Crore. Thecompletion of the said transaction is subject to fulfilment of certain conditionsincluding regulatory approvals as set out in the BTA.

THANE PLANT - BUSINESS TRANSFER AGREEMENT

In September 2015 the Company entered into a Business Transfer Agreement (BTA) fortransfer of the Company's manufacturing facility at Thane as a going concern. The BTA willbe concluded upon receipt of all necessary approvals. The Company has received partapproval from MIDC for transfer of the business undertaking save and except certainportion of the land which is subject to pending proceedings and has represented to theMIDC and Government for granting approval for transfer of the entire land.

REVIEW OF OPERATIONS:

GO-TO-MARKET TRANSFORMATION STRATEGY:

Your Company has been operating in India since our country became a Republic. In these72 years your Company has always been focused on achieving breakthroughs that make Indiaa healthier place to live in. Each of Pfizer's innovations and breakthroughs have been aresult of our patient-centric way of working. As you know your Company adopted Pfizer'sglobal Purpose - Breakthroughs that change patients' lives in 2018. Since then we havebeen on a transformation journey to be the most customer-centric and innovativepharmaceutical company in India.

In the first phase of this journey your Company worked towards consolidating a robustportfolio with the right mix of innovative and established products. To grow ourestablished business we renewed our focus on delivering specialty medicines and makingour established products accessible and affordable for millions of patients across largergeographies. In our established business we have doubled our doctor base doubled ourretailer coverage increased our stockists base by four times and expanded our presenceto over 300000 towns and villages. To increase the breadth of our innovative portfolioyour Company has introduced many breakthrough medicines at lightning speed.

Through your Company's innovative and established brands we have changed the lives ofcountless patients. With Zavicefta a market leader in its category we have enabledhealthcare professionals to treat persistent infections that are resistant to antibiotics.It has saved the lives of more than 50 thousand patients to date and has helped familiesreunite with their loved ones. With Prevenar13 vaccine we have protected numerouschildren and adults from Pneumonia one of the most common infectious diseases in theworld. Through Eliquis we have touched the lives of more than 4 lakh patients and reducedthe risk of strokes. With Enbrel we have enabled a better quality of life and mobility forthe Rheumatoid Arthritis patients.

With a diverse portfolio in place the next step in your Company's journey was todeliver our medicines to our customers in a way that would not only help us grow but alsocreate a greater impact on customers patients and communities. Thus we set out toredefine our customer experience.

In the second phase of your Company's transformation we will stand true to ourcommitment to our new Go-To-Market Strategy and transform the way we engage customers andpatients. We will place customer experience at the center and revolutionize how weintroduce our robust portfolio to HCPs retailers institutions Governments and otherstakeholders. In effect we will move away from just delivering our products tounderstanding our customers' journeys. Our unique proposition will lie in the value wewill add at every step of this journey through multiple innovative solutions includingomni-channel interactions with our customers.

To make this a reality your Company added new functions like the Patient andHealthCare Experience Studio team and Health Solutions Partner (HSP) team. Your Company'snew and existing functions will be strengthened by new customer-facing specialists calledSubject Matter Experts (SMEs) who will support our field colleagues deliver thisincremental value. The Patient and HealthCare Experience Studio team will createinformative yet engaging content which will be leverage by our customer facing colleagues.The HSP function through SMEs like the Health Solutions Partners (HSP) will be focused onproviding customized health solutions to HCPs with the purpose of better customerexperience and enhanced impact of our medicines and vaccines on patients and society. TheKey Account Management function now known as Strategic Account Management (SAM) will bereinforced by Strategic Health Partners (SHPs) who will be focused on leading long-termconsultative senior executive relationships with healthcare institutions to becometrusted business advisors.

We will enhance our commitment to communities with the help of HealthCare AccessSpecialists (HAS) and Patient Engagement Partners (PEPs) who will be a part of the Accessteam. A HAS colleague will mobilise new sources of funding and enhance partnerships in newpayor segments like State Governments and Insurance companies. A PEP will work ongenerating insights and providing stellar experience for our Patients and HCPs withregards to Pfizer Patient Value Offerings. In addition to these SMEs there are many moresuch roles that will be added to help us step into the future.

Going forward the role the purpose and designation of our customer facing colleagues(CFCs) will now expand into that of a HealthCare Executive (HCE) colleague. In the newPfizer HCEs will need to demonstrate a growth mindset and a better understanding of theirstakeholders. They will need to use digital channels and analyze data to not only generateincremental revenue but also provide value-added services to HCPs retailers andinstitutions. Moreover the HCEs will enhance their strategic relationships with ourcustomers by leveraging their new superpowers - the SMEs.

In summary with your Company's transformation whenever a Pfizer colleague interactswith a customer in the future they will carry a portfolio that will not only include ourproducts but also the value-added services they will provide through the SMEs and othercrossfunctional colleagues. This is being the new for all of us and the crux of how Pfizeris changing in India.

Business Operations:

Your Company's commercial operations are conducted through distinct business units thatfocus on clearly defined therapeutic areas. Between these business units your Companycollectively addresses 15 therapy areas with a portfolio of over 150 products that includetherapeutics and vaccines.

1. Vaccines:

Your Company's Vaccine business focuses on a pneumococcal conjugate vaccine - Prevenar13. This vaccine provides broad coverage against the most prevalent 13 serotypes ofStreptococcus pneumoniae. Prevenar 13 is now ranked 26th in the Indian PharmaIndustry (March 2022). With the approval of the Drugs Controller General of India in May2021 for 18-49 years age group in addition to the pediatric adolescent and 50-plus agegroup Prevenar 13 has become the only pneumococcal conjugate vaccine for all age groupsavailable in India.

Your Company continues to enjoy a leadership position in the pneumococcal vaccinesmarket with a unit share of 43.7% becoming the most prescribed pneumococcal vaccine. With59.2% value market share your Company maintained a leadership position by value as wellin the pneumococcal vaccine market as of March 2022.

Your Company is committed to creating awareness and making vaccines accessible to thepeople of India so that more individuals can be protected against the devastatingpneumococcal infections. While your Company enjoys equity and trust of pediatriciansPrevenar 13 is now also making in-roads in nonpediatric specialties to establish theimportance and relevance of adult and elderly vaccination.

Your Company continued with its endeavor of establishing importance of choosing broadcoverage Pneumococcal Conjugate Vaccine for pediatric patients with the support ofHealthcare Professionals with robust scientific updates and global best practicesconducting multiple experience-sharing initiatives by enlisting the support ofinternational speakers.

Your Company undertook various initiatives to establish Adult Vaccination and sustainand strengthen its presence at pediatric vaccination:

• COVID-19 led disruption continued to create a challenge in face-to-face customerengagement. Your Company continued to leverage digital platforms to educate physicians onthe disease burden of pneumococcal diseases and helped them recognize the benefits ofpneumococcal vaccination. Your Company leveraged various experts such as pulmonologist andinfectious disease specialists across the nation to share their experience in treatingpneumococcal disease and emphasised on the importance of prevention amongst adultpatients.

• To facilitate adult vaccination Your Company launched a 100% digital journeyfor patients and consumers from awareness to fulfilment by identifying and approaching theright target population on social media and driving consultation and vaccination throughLybrate. Through this campaign your Company reached out to 8 million people drivingengagement with 30000 consumers. Your Company aims to partner with more platforms toincrease reach and improve engagements thus touching more lives.

• Your Company partnered with a leading e-pharmacy in India thus spreadingawareness amongst their patient pool of 500000 co-morbid patients to drive vaccinationfulfilment in their ecosystem itself.

• Availability of vaccines for adults is a critical step to complete the circle ofprotection. Hence your Company partnered with hospitals across India to encourage them todeploy adult vaccination centers - a dedicated resource from where information on adultimmunization can be obtained. Your Company has an ambition to expand such strategicpartnership to protect more lives against pneumococcal disease in the future.

• Continuing the campaign "FIGHT PNEUMO" your Company spread awarenesson the importance of pneumococcal vaccination amongst adults and at-risk patients. YourCompany continued to leverage the Fight Pneumo YouTube Channel and partnered with AdultVaccination Specialists (such as infectious disease specialists pulmonologistscardiologists etc.) across the country to create patient awareness in nine regionallanguages.

2. Inflammation and Immunology:

The Inflammation and Immunology vertical makes available medicines to patientssuffering from chronic diseases related to immune system like Rheumatoid ArthritisPsoriatic Arthritis Ankylosing Spondylitis Juvenile Idiopathic Arthritis Psoriasis andUlcerative Colitis. These advance therapies include drugs made from protein-cytokine andoral therapies that manage inflammation and pain. The goal of this team is to transformthe management of chronic inflammatory diseases many of which are not well managed byexisting treatment options that provide only symptomatic relief. Your Company currentlyhas two products under Inflammation and Immunology.

Enbrel is the first Tumor Necrosis Factor (TNF) inhibitor launched across the globe forchronic indications like Rheumatoid Arthritis (RA) Ankylosing Spondylitis (AS) PsoriaticArthritis (PsA) Psoriasis (PsO) and Juvenile Idiopathic Arthritis (JIA). Till date thisauto prefilled injection that can be applied subcutaneously among all age groups hasimpacted the lives of over 6 million patients worldwide. Enbrel is backed by more than 500clinical trials and more than 7000 publications.

Enbrel is currently prescribed by Rheumatologist Dermatologist PediatricRheumatologist and selected orthopedic treating physicians in India. With a legacy of over20 years your Company continued to maintain the growth in Enbrel through various medicalmarketing initiatives like International Speaker Programs Case Based Discussions Trainthe Trainer Programs and Patient Focused Communication campaign building on the heritageand trust created by the brand backed by robust scientific data.

The second product under Inflammation and Immunology is Xeljanz (tofacitinib) whichwas launched in India in 2016 for Rheumatoid Arthritis and Psoriatic Arthritis. It is thefirst oral Janus Kinase (JAK) inhibitor a type of medication that functions by inhibitingthe activity of one or more of the Janus kinase family of enzymes. In 2021 Xeljanzreceived approval for an additional indication of Ulcerative Colitis allowing itspromotion to Gastroenterologists.

Your Company has also pioneered several innovative initiatives in Digital space fordriving patient awareness to improve disease diagnosis and to help patients achieve a goodquality of life during treatment. The team is poised to maximize its presence in therheumatic space with the successful GTM Model Launch.

3. Internal Medicine:

Internal Medicine business has been on a transformation journey in India to #BeTheNewsince 2018. In its first phase the team embarked on a landmark journey of evolution. Theteam took two bold initiatives. First we enhanced your Company's specialty focus in coremarkets and second we expanded our reach in the multiplier markets - Tier 2 onwardsthrough strategic external partnerships. With this we witnessed significant expansion ofour business impacting the lives of millions of patients and over 1.25 Lakh HCPs. Throughthe efforts of our colleagues in Internal Medicine we have doubled our retailer coverageand tripled our specialty focus in our core markets over the last few years. We have alsonurtured our flagship innovative brands like Eliquis as one of the market leaders in itssegment. In the second phase of our transformation it is our aim to equip ourselves withthe right capabilities to deliver industry-defining customer experience (CX). Staying trueto our commitment to our new Go-To- Market strategy and to meet our CX goals we will nowtransform the way we engage patients and physicians. To make this vision a reality wehave been working on building a new Go-To-Market strategy for the Internal Medicinebusiness. With the help of our new strategy our HealthCare Executives will work to betterunderstand our customer journeys across therapy areas. They will identify opportunities toprovide customised interventions and solutions that will deliver a personalized experienceto our customers and improve patient outcomes by using digital channels effectively.

Eliquis: Eliquis? (Apixaban) a Factor Xa Inhibitor Anticoagulant is a leading oralAnticoagulant predominantly prescribed by cardiologists physicians/pulmonologistsvascular surgeons and orthopedic surgeons. Atrial Fibrillation is the key indication forwhich NOACs are prescribed. Eliquis continues to out-perform the market by achievinghighest quarter value market share of 29.7% with an EI 115 (month) EI 128 (Qtr) and EI 112(MAT March 22'). Eliquis grew by 44.6% in Jan-Mar 22' PY Qtr and 39.7% MAT The team hasbought in significant outreach and penetration for the brand through the new Go-To-Marketcopromotion strategies which started in 2021. This strategy has been seen to createtraction in prescribers (102% growth PY) and prescriptions (186% growth PY) Eliquis hasbeen in the forefront in promoting first-in-class anti-coagulation science through variouseducational programmes like Expert Conclave: Case based panel discussions MasterclassWebinar: International and National Expert coming together for sharing updates in AF/VTEmanagement reaching to more than 5000 attendees ASPIRE: capability building throughcertification program for 1000 Consulting physicians. For the first time PatientFamiliarization Initiative (Direct-to-HCP sampling) was initiated to help HCPs experienceEliquis and positively impact lives of patients needing anticoagulation therapy. In viewof market maximation and expansion opportunity in pre-Loss of Exclusivity period Eliquisgained endorsement for new pricing strategy for improving access and affordability for thepatients in India.

Neuroscience and Cardiovascular: Your Company's Neuroscience portfolio representsmultiple brands that are leaders in their respective segments. Pacitane (Trihexyphenidyl)leads in its therapeutic category with 68% market share with 20% Rx growth over last year.Ativan (Lorazepam) is the second largest anxiolytic brand in the BenzodiazepineTranquilizer market growing at 25% in Rx.

Minipress XL the leading brand in the market for uncontrolled hypertension hasincreased its market share to 45% with growth of 11% and EI of 104 as on MAT March 22.Your Company continued its engagement activities in the area of uncontrolled hypertensionthrough medico-marketing initiatives with physicians nephrologists and cardiologists.

Respiratory Portfolio:

Your Company has presence in the Respiratory portfolio with Cough and OralCorticosteroids therapies. The flagship brand Corex Dx has maintained leadership positionin the dry cough Respiratory Portfolio Market with 16.9% value market share. One of themajor initiatives taken during the year was 'cough the right way'-a campaign that aimed tocreate awareness and avoid spread of infections. As part of future growth strategy yourCompany continues to focus on building brands in the productive cough segment with lineextensions of Corex LS and Corex LS Junior.

Women's Healthcare:

Your Company's portfolio in Women's Healthcare supports important life-stages likepregnancy menopause and contraception with established iconic brands across the continuumof care. Brands like Folvite Ovral L and Premarin continue to maintain their leadershipposition in the represented market and the consolidated portfolio continues to drivestrong growth. Acceleration in digital transformation and enhanced focus on gynecologiststhrough phygital (physical + digital) promotional approach helped drive robustprescription growth. Now four of our flagship brands in the portfolio - Folvite AutrinOvral G and Folvite MB feature amongst the top 100 brands prescribed by gynecologists inIndia.

Pioneering initiatives in the digital space targeted at Gynecologists and Consumersdifferentiate us in the marketplace. The launch of our first virtual consumer awarenessinitiative- #sPILLthebeans has created an ecosystem that supports consumers' journey fromawareness to consultation and fulfillment. We have reached a significant milestone of over15 million Indian consumers using social media platforms this year. This resulted in thepositive traction with consumers and Healthcare Professionals.

Our on-going flagship programme- "Partners through Parenthood" which supportsgynecologists to manage patients in the 24-months journey of parenthood is now geared upto reach consumers through social media platforms partnering with eminent 4000gynecologists for better pregnancy outcomes.

Your Company's commitment towards SCIENCE FIRST is reinforced in the current times byleveraging partnerships with renowned scientific associations such as the Family WelfareCommittee of Federation of Obstetric and Gynecological Societies of India (FOGSI) SpinaBifida Foundation (SBF) and Indian Society of Perinatology and Reproductive Biology(ISOPARB) to upgrade scientific knowledge of gynecologists through innovative digitalchannels. Your Company pioneers in gynecologist education and building resources and toolsfor advancing better quality of care for patients with commitment to improve maternaloutcomes and reproductive health.

Gastric portfolio: Your Company has presence in gastroenterology segment with brandslike Neksium Gelusil and Mucaine. The focus of our Esomeprazole Proton Pump Inhibitor(PPI) - Neksium has been on delivering excellence by driving strong in-clinic focus onkey specialties including gastroenterologists and orthopedicians. Your Company launchedGERDian

campaign to promote rational use of PPIs and is working with International Associationslike American Society of Gastrointestinal Endoscopy (ASGE) with the Gastro Video Theatreportal. The objective of this program is to educate Gastroenterologists for knowledgeupgradation and enhanced patient outcomes on the most relevant topics in theGastroenterologist domain from the premium world-renowned institute - ASGE and engageGastroenterologists in an informative and insightful knowledge exchange from peer reviewedhigh quality surgical videos by renowned experts and innovators across the globe. YourCompany has intensified focus on nursing homes and small hospitals that have helpedsustain momentum. Your Company has launched a Hospital Staff Education and LearningProgramme (HOPE)-a module-based content platform designed especially for the nursingcommunity and paramedic staff. Neksium D launched in 2019 continues to build growth forthe brand and has been positioned to drive differentiation by targeting patients withsymptoms related to Refractory GERD.

Leading brands such as Gelusil and Mucaine have further entrenched your Company'sdominance in the gastric segment. Gelusil position in the Antacids market has strengthenedwith dominance in the high potential states leading to a 22% market share. With arefreshed GTM strategy and consistent innovation we have increased the on-groundactivation to ~75000 retailers which has helped us improve the brand's visibility andavailability to consumers. Additionally outreach and engagement via awareness campaignson hyperacidity conditions on digital platforms such as Facebook Instagram YouTube hashelped us reach over 50 million consumers. Meaningful partnerships with trade partnershave enabled us to increase reach. Mucaine has driven robust prescription growth of 19%across specialties and maintained leadership position in the liquid antacid category witha market share of 20%.

Pain and inflammation portfolio: Your Company has a pronounced presence in the pain andinflammation category with brands Dolonex (Piroxicam) and Wysolone (Prednisolone). Bothare legacy brands with more than 40 years of presence in India and are leaders in theirrespective categories having impacted lives of more than 10 million patients in thecountry. Dolonex DT and Wysolone both have an EI of 97 and 103 respectively each backed bystrong Rx growth of 26% and 16% respectively. Your Company has continued its engagementactivities in osteoarthritis (OA) and low back pain (LBP) through medico-marketinginitiatives like 'Back in Action' campaign with orthopedicians and physicians on treatingOA and LBP. Your Company has started an educational initiative 'Pain Scientia' inpartnership with the American Academy of Pain Medicine (AAPM). Pain Scientia is a one-of-a-kind program that gives physicians an overview of interdisciplinary pain managementeducation to improve their ability to recognise and comprehend

the unique needs of pain patients as well as refer and treat patients in aninterdisciplinary multimodal manner. The portfolio expanded in December 2020 with theintroduction of Dolonex E (Etoricoxib) for the treatment of osteoarthritis. Your Companyplans to further expand the portfolio to provide a range of solutions for management ofosteoarthritis. Further this year your Company plans to create a digital presence fordoctors treating patients with joint pain through 'Pain Clinics'.

Vitamins Portfolio:

Becosules has been helping patients and consumers boost immunity for many decades now.Having served millions of Indians over the last couple of years more so during thepandemic to improve and boost immunity with B-Complex forte and vitamin C combination ofBecosules Pfizer continues to drive the B-complex and multivitamin market. Continuedfocus on prescriptions at the HCPs has helped us improve the prescriber base to 50000HCPs. To further strengthen the OTC contribution and reach to the consumers we rolled outprint media and social media campaigns in important geographies. With leading dailies ofUttar Pradesh and Maharashtra Becosules reached out to ~60 million consumers in the twostates. Relentless on-ground activation at ~75000 retailers and consumers is propellingthe brand to the next level.

4. Hospitals

Your Company's Hospital business unit focuses on institutions such as hospitals andnursing homes with its advanced anti-infectives and sterile injectables portfolio.

Pfizer's breakthrough innovative and patented drug Zavicefta (ceftazidime-avibactam)has recorded exponential growth driven by increased uptake across a greater number ofhospitals. This novel drug is indicated for the management of hospital- acquired pneumoniaincluding ventilator-associated pneumonia (HAP/VAP) complicated intra-abdominal infection(cIAI) complicated urinary infection (cUTI) and Bacteremia associated or suspected to beassociated with any of the three indications in adults. With Zavicefta the team has builtstrong credibility and equity with customers through extensive advocacy with clinicianseducation of microbiologists for facilitating diagnosis and digital outreach for widerreach.

The category also has a strong presence across the anti-bacterial continuum rangingfrom beta-lactam/ beta-lactamase-inhibitor (BL/BLI) products to high- end anti-bacterialproducts. Amongst these Magnex Forte 3g is the leading brand with 4.1% market share byvalue in the represented market segment. In 2017 the team acquired and launched the brandMeronem an injectable antibiotic indicated for the treatment of serious bacterialinfections which are difficult to treat due to resistant pathogens. Meronem enjoys 6.8%market share by value in the represented market.

The team also believes that Antimicrobial Stewardship (AMS) is a key pillar to ensureappropriate usage of anti-infectives and hence is committed to creating awareness on AMSamongst HCPs. The team has engaged with more than 1000 HCPs through continuous medicaleducation to learn more about AMS and created innovative digital solutions to reach out tomore than 11000 HCPs to spread awareness and knowledge on infection control strategies.The Hospital category also engaged with stakeholders beyond doctors in the hospital togain collaborative insights to become value partners for these institutions.

During the year under review the team has extensively leveraged the power of digitalto connect with customers on their preferred channels and platforms to deliver informationabout the therapy and your Company's products. The team designed and launched extensiveomnichannel agile content customised video channels and built innovative solutionsaround simulation and gamification to provide an immersive experience to customers.

MANUFACTURING OPERATIONS

Overview:

Your Company's manufacturing operations are carried out in full compliance with locallaws and in line with the stringent Pfizer Global Quality Compliance and EnvironmentHealth & Safety standards. Your Company has taken stringent measures to ensure thatthere is no disruption in product supply due to the COVID-19 pandemic while ensuringhealth safety and well-being of all employees by implementing all local regulatory andPfizer global pandemic requirements.

Your Company has successfully implemented Integrated Manufacturing Excellence Program(IMEx)—Pfizer's

internal production system throughout the Goa site making it the first site acrossPfizer Global Supply (PGS) and Local Solid Manufacturing (LSM) to be 100% Phase 1 andPhase 2 IMEx certified with 100% Pfizer colleagues' involvement.

Your Company focusses strongly on environmental sustainability through implementationof green energy initiatives and waste minimization projects.

People

Over the past year your Company formed a Colleague Resource Group (CRG) to improvediversity and inclusion initiatives across the site. The CRG conducted several programsand initiatives to train and motivate employees to foster a DEI (Diversity Equity andInclusion) culture. Your company also implemented a Compliance Champions Committee andintroduced a quarterly compliance champion awards program to strengthen and sustain thecompliance culture at the site. Your company also rolled out the Data Integrity andIndividual Accountability Program (DIIA) at the site to further enhance the compliance anddata integrity culture at the site.

IMEx trainings for leaders and all employees was carried out to deliver best-in-classperformance which included Six Sigma Yellow/ Lean Green Belt training and otherOperational Excellence trainings to improve the competency of site colleagues.

Environment Sustainability

Your Company follows stringent global safety environmental health and occupationalhygiene standards. We have created an excellent model for environmental sustainabilitywith focus on conservation of resources green energy and waste minimization.

Your Company has continued its journey towards Green Energy and completed Phase-III andPhase-IV Solar projects during the year. Site's solar power generation had gone up by 2.7times. A total of 345 MWH of electrical energy generated through Solar power system wasconsumed in Manufacturing activity thus reducing the carbon footprint by 260 Tonnes.

The Plant has continued its efforts towards energy conservation through replacement ofold manufacturing operations machines with high-efficiency machines. The site alsoreplaced old dehumidifiers with new generation high efficiency units to conserve energy.These initiatives have resulted in significant reduction in power consumption.

MEDICAL AFFAIRS

During the year under review your Company's Medical affairs team partnered withvarious business units to help deliver our medicines to our customers in a way that wouldnot only create greater impact on customers but also to the patients and communities.

As part of its various medical education initiatives to deliver impactful insights anddisseminate medical knowledge the Medical team partnered with Vaccine business to helpthem to win the digital race. The team reached out to ~500 HCPs through variousinitiatives including consulting physicians pulmonologists infectious diseasespecialists and other specialists ('ECHO Vaccines' in partnership with Association ofPhysicians of India and 'SHIELD') delivering first-in-class science.

The team also conducted three medical advisory board meetings with pediatricianspulmonologists infectious disease specialists intensivists cardiologistsnephrologists and consulting physicians and gathered insights on pediatric includingadolescent pneumococcal vaccination and building adult vaccination ecosystem.

The Medical team also published six review articles on disease burden of respiratorysyncytial virus meningitis meningococcal disease group B Streptococcus Clostridioidesdifficile and co-morbidities in patients with community-acquired pneumonia in variousinternational journals.

The Medical team collaborated with Policy and Public Affairs Patient Advocacy andAccess teams to improve awareness on and access to pneumococcal vaccination for adultswith comorbidities elderly population and

patients with sickle cell disease. This helped us focus on our narrative of 'patientcentricity'.

The Medical team supported FISF (Fungal Infection Study Forum) towards building anational online fungal registry for invasive fungal infections (IFIs). The registry willbe collecting the clinical and microbiological details of invasive mold infectionsprospectively from various public and private hospitals over two years which will bepublished at regular intervals. This will help address the gaps in epidemiological andclinical outcome data for IFIs.

Antimicrobial stewardship continued to be a key focus area with the continuation of the'Pfizer ORBIT- The AMS Revolution' a project focused on sustainable AMS practices(inclusive of education/digital solution/and monitoring). The digital healthcare solutionproject has been initiated in six Tier 1 hospitals with the objective of making the AMSpractices sustainable to reduce AMR. The educational initiatives focused on training theAMS teams in Tier 2 hospitals on local antibiotic policy development. Eight out of the 19hospitals successfully developed local antibiotic policies. Additionally ~600 HCPs fromTier 2 hospitals including clinicians pharmacists and nurses were trained on theirrespective roles in AMS implementations in the hospital.

Efforts also continue with ATLAS global surveillance program with 10 Indian sites andpublication of the susceptibility data for different antibiotics in the Indian scenario.The global surveillance data including India is available for HCPs to access onhttps://atlas-surveillance.com

The Medical Affairs team also supported educational initiative focusing on trainingHCPs on understanding diagnostics patient journey and current trends in the management ofMDR Gram-negative infections via master classes followed by observership and a month-longdigital engagement for query resolution post observership.

The Medical Team continued our efforts to reach out to a greater number of patientsaffected with inflammatory disorders with recent launch of Xeljanz in Ulcerative colitisand reaching out to over 200 gastroenterologists across the country.

The team strived to disseminate the favorable benefit risk profile of our immunologyportfolio through our Immunology Medical Updates forum with multiple specialties andyoung rheumatologists reaching out to more than 100 specialists across the country throughour interactions.

The team continued leading the conversations with high quality science regarding ourupcoming portfolio by updating clinicians through our collaborations with specialisedassociations like the Skin Allergy Society for Atopic dermatitis Masterclass and settingup structured real-world-evidence framework for Immuno- dermatological conditions likeAtopic dermatitis Alopecia areata and Vitiligo.

The Medical team also successfully partnered with Medical Associations acrossportfolios for focused medical education programs like ECHO in collaboration with API andAFPI GUTS in collaboration with Asian institute of gastroenterology and Gynecologyconnexions with Indian menopause society.

The Medical team partnered with prime cardiac centers providing a common platform toshare their mutual clinical expertise digitally in the use of NOACs as a first step indigitalizing NOAC care in collaboration with API VSI and CVRS. Scientific publicationsaddressing the practical challenges in AF and VTE in the form of simple algorithmscustomized to India. Internal Medicine and Rare Diseases medical team collaborated toconnect with the cardiologist to positively improve the life of the patients with rarecardiovascular condition; amyloid transthyretin cardiomyopathy.

PEOPLE EXPERIENCE (PX)

Out with the old in with the new. The organization formerly known as Human Resourceshas a brand-new name - People Experience.

The name People Experience (PX) holistically represents the work we do and speaks tothe vibrant and inclusive experiences we will continue to create for our colleagues.Everything we do in People Experience is focused on our colleagues their engagementcreating opportunities for them to be their best and amplifying their potential.

People Experience has launched many new initiatives that have focused on integratingthe workforce workplace and work output. And the People Experience name betterrepresents our aspiration and focus - providing special attention to the health andwellness of our colleagues simplifying end-to-end processes to prioritize meaningfulwork and fostering an environment where our people can thrive grow and contribute toour purpose of Breakthroughs that Change Patients' Lives.

The year 2021-22 reinforced the importance of being a safe inclusive and supportiveplace to work for all our colleagues. Even during such trying times your Companyresponded with agility ensuring the safety and well-being of our employees while ensuringminimum disruption to our business. Our continued success links directly to thecommitment engagement and performance of our colleagues. It is important that we notonly attract and retain the best and brightest diverse talent but also ensure they remainengaged and can thrive in an environment that is committed to helping them grow succeedand contribute directly to achieving our purpose. As part of these efforts we strive foran inclusive and empowering work environment adopting practices to simplify processes andremove needless complexity rewarding both performance and leadership skills fosteringcareer growth and internal mobility and offering competitive compensation and benefitsprograms that encourage mental and physical wellbeing.

A. Talent Attraction & Engagement:

• Co-creating our Employee Value Proposition (EVP): In line with your Company'sBold vision of Unleashing the Power of our People and making Pfizer an amazing workplacefor all the team has been on a journey of strengthening our Employer Brand in the Indianpharma industry. The team tied up with a leading digital media agency to collaborate incrafting our Employee Value Proposition while also having our internal employees act aschampions of the change by voicing their ideas and perspectives. Our colleagues fromacross the Commercial Science and Medicine and Pfizer Global Supply units in Indiareaffirmed Pfizer as their employer of choice and rated us positively during theevaluation process. This allowed us to win this coveted certification of Great Place toWork in our first year of participation.

• Pulse Survey: Your Company understands the importance of continuously listeningand responding to colleague feedback and our engagement survey Pfizer Pulse provides aforum for our colleagues to give structured feedback about their colleague experience.Through this survey we measure and track key areas of the overall colleague experienceand equip leaders with actionable insights for discussion and follow-up.

• Sales Career Architecture: Keeping with the commitment to developing internaltalent and creating a holistic experience for our employees the revamped Sales Careerarchitecture enabled employees to take charge of their career development while alsoinstilling ownership and accountability at the manager level. The identified set of highpotential colleagues are then put through a structured learning journey to enable them tomake a successful transition into the next level roles.

• Breakthrough Benefits: Your Company is committed to building an amazingworkplace where colleagues can bring their best version of themselves to work every day.Subsequently your Company has launched various Breakthrough benefits with a focus onproviding flexibility and support to the diverse needs of our colleagues. As part of theseefforts your company introduced a 'Log In for your Day' policy to empower colleagues todesign their workday maximise productivity and enhance work-life balance. Introduction ofWellness Day to help colleagues take time to re-charge and focus on their physical andmental well-being. Partnered with and launched Thrive Global a wellness andorganizational change initiative with a primary focus on colleague mental health andwellness. Helped our colleagues gain access to expert opinions on wellness and mentalhealth advice

and tips on various aspects of day-to-day life through our employee assistance programprovider. Also as a continued commitment to the overall health and well-being of ourcolleagues the Pfizer India Immunization program continues to provide access toQuadrivalent Flu Vaccine and Pneumococcal Vaccine to all colleagues in India and theireligible dependents by reimbursing the cost of vaccination in order to build ourCorporate Immunity Quotient.

B. Building Capability

• Leadership Effectiveness Journey: Your

Company tied up with a leading management consulting firm to co-create a transformativejourney for the Leadership Team to be aligned to the strategic changes in the long-termvision of the organization. The program focuses on how to make our leaders more effectivein terms of growth mindset agility and complexity empowering and collaborating and mostimportantly building new leaders. The journey which started in November 2020 with thediagnostic phase had the entire Leadership team going through an exhaustive survey andbehavioral event interviews. The objective of the diagnostic phase was to evaluate factorsassociated with highly effective top leadership teams of an organization. At this stagethe program is now moving into the action phase with multiple workshops being scheduledwith the Leadership team to build leaders for the future.

• Talent Planning: As your Company starts focusing on its long-term strategy ofbeing a science and innovation-based organization we must identify mission critical rolesthat will play a determining role in our success story and place the right talent in thoseroles. With this objective in mind the talent planning approach was revamped shiftingits' focus from the individual to the role. This approach enables us to assess any gapsand craft a holistic build/buy/borrow talent plan to meet the talent demands of the newagile organization. This approach would tie in with creating customised learning anddevelopment plans focused on building key experiences that will lead to successfuloutcomes.

C. Diversity Equity and Inclusion

• Leadership Commitment: Diversity Equity and Inclusion is a key area of focusfor us and it is our constant endeavor to Make Pfizer India a truly diverse and inclusiveworkplace. Towards this we have prioritized Gender Diversity as a core area of focus andour Leadership team has taken significant measures to enable building gender diverseteams. There are two significant goals that have been carved out in this area: (i)Increase women representation in the field force to 10% as compared to 7% today (ii)Increase women representation in Leadership

Team to 20% as compared to 14% today. In order to promote Gender Diversity we haveintroduced Differentiated Rewards for Diversity Hiring. As part of this initiative theemployee referral policy was made more lucrative encouraging women colleagues to referwomen peers for field roles and earn double the referral amount. Additionally adifferentiated reward scheme was also created for the internal sourcing team to create apipeline for diverse profiles for field roles. We exhibited strong Leadership Commitmentto its' Diversity Equity & Inclusion agenda in the expansion hiring project forHospitals and Vaccines team. The expansion saw business and HR teams coming together tochampion the cause of Diversity and Inclusion and we were able to successfully on-board100% diversity talent for Vaccines team and 51% diversity talent for Hospitals team.

• Transition Coaching: As an organization we understand the significance of notonly getting diverse Talent on-board but also creating an enabling work environment forthem where they get to be at their professional best. As part of this objective aninitiative called "Transition Coaching" was launched for high potential womenleaders taking up new and challenging assignments. In this regard we partnered with aleading consulting firm to provide access to external coaches for the identified set ofwomen colleagues. A three-month coaching journey was crafted specifically for thesecolleagues in discussion with their managers to enable these women leaders to make asuccessful transition and setting up them for success in their new roles.

• Fine Balance Workshops: As we continue focusing on building gender diverse teamsin the field it is important for us to build our managers capability to lead diverseteams successfully. Keeping this objective in consideration we partnered with a leadingconsulting firm in DEI space and co-created workshops equipping our managers to exhibitbehaviors and leadership style that will help colleagues to realize their true potential.

• Courageous Conversations: It is important for us that our colleagues feel safeand included as part of the organization. This is also in alignment with Pfizer values ofCourage and Equity where every person deserves to be seen heard and cared for andshould be able to Speak Up without any fear. To build a culture of inclusivity Pfizerglobally has initiated a series of dialogues called Courageous Conversations. Thisworkshop focuses on creating a safe space for colleagues where they can share theirstories without the fear of judgement. culture building in this context.

D. Create Room for Meaningful Work

Your Company is continuously striving to create room for meaningful work by identifyingopportunities through technology and innovation to digitize the existing HR processes. HRDigital Assistant - a chatbot has been enabling managers to become selfsufficient incompleting day-to-day transactions about critical life-cycle events of the colleagueswithout any dependency or support. Also your company has made significant progress inautomating its' talent attraction process through tools like HireVue and HiredScore toautomate the screening and interview process and simplify the overall hiring cycle for thehiring manager as well as the candidates. To further simplify the ways of working theinternal recruitment team was introduced in Q3 of 2020 to standardise the internal hiringprocess and to act as a one- stop solution for all internal movements. The team continuesto make progress on simplifying processes and removing needless complexity.

COVID-19 impact on Business Operations

Your company has always been committed to the health and well-being of its employees.Since the beginning of the pandemic Pfizer has taken swift action in ensuring acontinuous supply of our medicines to our customers. We collaborated with cross-functionalcolleagues and external partners to strengthen our supply chain and overcome thechallenges presented by the pandemic. We formed a COVID task force to share regularupdates and guidance to our colleagues so that they can protect themselves and theirfamilies from the disease. For our colleagues and their registered dependents we:

• partnered with leading Healthcare Service Providers for accelerated COVIDtesting and virtual consultation

• Introduced additional COVID medical insurance cover

• Delivered home care package comprising of masks sanitizers and other protectiveequipment

• Reimbursed cost of purchase of Oximeter

• Reimbursed cost of COVID tests

• Introduced home quarantine cover for at-home treatment of COVID-positivecolleagues and their dependents

• Supported with hospital admissions sourcing of critical life-saving medicinesand consultations with specialist HCPs

• Procured Oxygen concentrators and made them available across major cities inIndia

• Partnered with leading Healthcare Service Provider to provide anall-encompassing home isolation package

• Shared frequent communication to ensure that they have access to latest andauthentic information

• Introduced special safety and well-being allowances for field colleagues toprocure additional safety equipment

• Organized vaccination camps across 7 Pfizer sites and partner hospitals toadminister both doses of COVID-19 vaccine

While COVID-19 is still a threat to our health your Company will continue to takeadequate precautions to ensure continuity of its business and protect colleagues and theirfamilies. Pfizer is to share that in spite of the pandemic and its significant rampageover three waves your Company has not suffered any significant adverse impact on itsbusiness operations. In fact your company has achieved significant breakthroughs in thistime - from introducing new launches to building stronger relationships with HCPs andinstitutions. We have adopted a new hybrid way of working that has laid the foundation forour future growth and success.

LEGAL:

Your company's Legal division is committed to providing pragmatic solutions in linewith the legal and commercial interests of the Company. Being a specialized departmentthe Legal Division works proactively with the business to drive compliant and innovativebusiness ideas strategies and programs right from inception and thereby promotes Pfizer'scommitment to Patients First. Your Company's Legal Lead also serves as the Risk CounsellorLead ("RCL") and acts as the primary risk management interface for all functionsIndia. In this capacity the RCL provides comprehensive risk management advice and counselto the business and enabling functions with the strong support of in-market Complianceand other risk management functions as appropriate.

The Legal Division continues to forefront solutions with the business pertaining todigital initiatives and support the business to enhance reach to physicians and awarenessto patients leveraging technology and plays leadership role in the following areas-

• Spearheading litigation against infringers and protecting the IP rights andentitlement of the Company.

• Guiding the business across Digital initiatives to enhance reach to physiciansand awareness to patients using technology.

• Constant support for Projects across divisions and enabling functions.

• Mitigation of risks associated with the Company's business operations andintellectual property rights.

• Defending the Company against litigation as well as pro-actively initiatinglitigation wherever necessary to ensure that the Company is insulated from operationalrisk.

BIOPHARMA OPERATIONS GROUP

Biopharma Operations is a fully integrated partner that delivers transformationalsolutions and excellence in everything we do to meet the everchanging needs of ourbusiness and our customers. The biopharma operations group is comprised of:

Biopharma Operations Partners (BOPs) is a fully dedicated interface for BUs offeringstrategic partnership and business insights as well as Biopharma Operations catalogexpertise. BOPs are full-time integrators interfacing with the business for localexecution in close partnership with the service enablement teams. BOPs are playing apivotal role in your Company's new Go-To- Market Strategy of Transforming the way weengage with patients and physicians playing a consultative part for driving launch of keytools and platforms; and other key enabling projects.

Biopharma Enablement designs and delivers strategic solutions that enable and optimizethe Patient/HCP commercial experience and ensures excellence for Pfizer's customer-facingand marketing colleagues HCPs and patients. The enablement team continuously delivers thepatient/HCP experiencing services finding new ways to deliver on scale and ensureexceptional experiences along the journey.

Biopharma Quality (BQ) fosters creativity and experimentation by providing riskmitigation strategies to ensure quality. Taking a "Big Q" approach (a customercentric and holistic approach to quality) BQ makes quality a competitive advantage forPfizer. BQ also advises on all aspects of quality trends opportunities and internalquality capabilities.

The Biopharma Operations (bio-ops) Group works in close partnership with the businessto ensure delivery of key bio-ops. services with enhanced speed efficiency and agility.The bio-ops. team are responsible for strategising operationalising and meeting the needsof key stakeholders and customer facing colleagues at Pfizer. It is this collectiveadvantage of the group that has led to strong partnerships with business and othercustomers; thereby helping Pfizer to deliver breakthroughs that change patients' lives'

Some of the key accomplishments of the group include:

• Launching of Service Request Tool which empowered ~1900 BU clients to leveragethe tool to raise biopharma ops. service requests

• Launching of Future of Content (FoC) as part of India Content Strategy withobjective of simplifying end to end content process

• Redesigning the Evaluation Index (EI) Process offering a holistic perspective ona colleague's performance

SUPPLY CHAIN

At Pfizer the objective of Supply Chain is to orchestrate and support breakthroughsthat change patients' lives through interventions that enhance our services across thevalue chain. In our drive towards continuous improvement and to stay ahead of the curvethis year apart from the core

focus of upgrading and developing our facilities we have taken a step to create aframework to capture the voice of our customers regularly and use their inputs to enhancetheir experience with Pfizer. We have also initiated use of predictive analytics forpurchase patterns disease profile value add services etc. These inputs would be used tocreate solutions and drive Customer Delight.

To further compliment all these initiatives a differentiated logistics network strategyhas been put in place to increase reach of our medicines and to also tap wider customersegments beyond our current footprint. All these initiatives would help us to evolve as anagile and sustainable customer supply chain organisation. The Supply Chain function isalso constantly and successfully developing a talent pool to provide logistics solutionswithin and beyond India and also nurturing the concept of center of excellence to supportsupply chain transactions for other markets across Asia Pacific.

DIGITAL

While the economy continues to reel from the effects of the pandemic the crisisenabled short-term disruption and elicited long-term changes in the way the world doesbusiness including rapid technology adoption and accelerated digital transformation. Theteam achieved significant milestones this year including many that were important forupscaling and optimizing business and continued to make progress on cyber securitycontrols to ensure your Company is secure from external threats to our IntellectualProperty and mission critical information.

Personalisation remains one of the most important user experience trends. Your Companyhas developed curated content which is updated on a timely basis to ensure the targetaudience remains engaged on Pfizer platforms. In sync with the changing times the teamhas delivered on many transformative solutions including enabling our customer-facingcolleagues to connect virtually with healthcare professionals digital platforms forpatient support programs and awareness campaigns on social media and other connectedplatforms.

Process Automation has been one of the key levers in 2021. The Company has digitaliseda key process workflow which has helped reduce manual intervention significantly.

As your Company continues to adopt innovative digital technologies it recentlyintroduced Artificial Intelligence- powered solutions a prime example of the power ofdigital transformation. AI-powered chatbots that answer simple customer enquiries serve asa welcoming change speeding up communication increasing convenience and delivering quickresolutions.

FINANCE

The Finance Division has been a strong and effective business partner to provideguidance and leadership while upholding highest standards for internal controls andcorporate governance. The division has been instrumental in driving performance managingrisks and opportunities in rolling out new Go-To-Market strategy and leading variousenterprise-wide initiatives.

During the year under review your Company's Finance team partnered strongly with eachof the business units in developing and executing the new Go-To-Market strategy drivingkey projects execution of Business Transfer Agreement for transfer of Upjohn business andplayed the role of enabler in multiple high impact business critical matters.

The Finance Division continued to support business units in ensuring businesscontinuity during COVID-19 second wave period by providing thought leadership to themanagement working capital support to the trade and driving various business decisions toensure uninterrupted supply of medicines.

In addition to the strong business partnering the Finance division played a pivotalrole in ensuring fiduciary integrity upholding high corporate governance standardsdeveloping governance policies maintaining good investor relations institutionalizingeffective internal controls and consistently driving strong business performance andfinancial prudence.

Internal Control Systems their adequacy and Compliance

The Compliance Controls and Risk (CCR) is responsible to ensure adequacy andeffectiveness of internal controls through continuous monitoring. CCR's objective is togive senior management Risk Management Committee and the Audit Committee an independentand reasonable assurance on the adequacy and effectiveness of the Company's riskmanagement control and governance processes. This is achieved through a co-sourcedinternal audit model wherein audit reviews are performed through an independent CharteredAccountancy firm.

Your Company has laid down Internal Financial Controls that include a risk-basedframework to ensure orderly and efficient conduct of its business safeguarding of itsassets accuracy and completeness of the accounting records and assurance on reliabilityof financial information.

The Audit Committee has evaluated the design framework and operative assessment anddeliberated with members of management and Statutory Auditors to ascertain their views oropinion. The Audit Committee has satisfied itself on the adequacy and effectiveness of theinternal financial control system laid down by management. The Statutory Auditors haveconfirmed the adequacy of the internal financial control systems over financial reporting.

The CCR conducts a risk assessment every year during which all risks to the Company'sobjectives are assessed and mitigating plans are recorded in risk register. This riskregister includes operational financial regulatory legal business and compliancerisks. All the key risks along with mitigating plans are presented and discussed twice ayear/ semiannually with the Risk Management Committee and the Audit Committee.

Annually based on the risk assessment findings from previous internal audits etc. CCRprepares the annual audit plan which is approved by the Risk Management Committee and theAudit Committee. CCR ensures execution of audit plan is throughout the year. As part of

the quarterly review status of the annual audit plan design assessment operatingeffectiveness key audit findings and remediation status of prior findings are presentedand discussed with the Risk Management Committee and the Audit Committee.

As a way of reinforcing ethics and integrity your Company has identified approx. 76colleagues as "Compliance Champions" from various teams who act as first pointof contact for colleagues in case they have policy related questions. These measures haveensured that your Company is well placed to drive the spirit of compliance across itsstakeholders

COMPLIANCE AND ETHICS

Your Company operate ethically and thoughtfully in everything that we do owning ourresponsibility to change lives for the better. As part of this responsibility weprioritise safety quality and transparency in our operations. Our governance structuresupports proactive business-led quality and compliance built around elements of effectiverisk management.

Your Company has implemented an effective and integrated compliance management with arobust framework keeping a proactive approach to identify and manage emerging compliancerisks by thoughtful risk taking and leadership accountability.

During the year under review the Compliance team introduced various complianceprograms to further enhance culture of compliance at grassroots level through compliancechampions and implemented a pro-active and robust risk and compliance governanceframework. The team enhanced the use of digital approach and adopted data analytics andtechnology for compliance monitoring and adherence which has led to more effectivemonitoring and dealing with the risks at early stages. With the new Go-To-Market strategywe proactively identified the newer risk your Company is exposed to and implemented amitigating framework of controls and governance. The compliance and business processestools and system have been further simplified with the use of new technology which hasalso led to better compliance adherence.

Your Company has a well-defined policy covering interaction with HealthcareProfessionals and Government officials called 'My Anti-Corruption Policy & Procedures'(MAPP). The policy addresses both local legal requirements while also leveraging bestpractices followed in other markets. Right tone from the top by the leadership and regulartraining and awareness also provides frequent reinforcements of Pfizer compliance andethics values. We continue to enhance and update our policies keeping continuous evolvinginternal external environment and emerging risk in mind. These measures have ensured thatyour Company is well placed to drive the spirit of ethics and compliance across itsstakeholders.

As part of various culture enhancing initiatives a Competition on Compliance(Compliance Champion

League)-CCL introduced a new initiative called Compliance Nuts & Crackers. Thecolleagues approached Compliance in a gamified manner with a combination of EthicsCompliance and Happiness activities which Compliance champions not only completedthemselves but also cascaded to their respective cohorts of field colleagues. This helpedinculcate Joy into Compliance learning and provided colleagues with much needed virtualfun and engagement during the pandemic. Your company also introduced a very innovative'Compliance Radio' program (but in a visual format) which aimed at striking a candiddiscussion and messaging from leaders and colleagues across Pfizer on Culture ValuesPolicies and Practices.

Office of the Ombudsman

As a global best practice your Company continue to provide support of "Office ofthe Ombudsman" to give guidance on grievances of Pfizer colleagues. Office of theOmbudsman continues to provide Pfizer employees access to multiple platforms and avenuesto raise concerns and seek assistance on a variety of matters. This is designed as an'informal' service - a mechanism whereby colleagues are able to ask their question in aninformal atmosphere and get sound advice back on what to do and how to handle. The Officeof the Ombudsman is an independent body that supplements the formal channels of grievanceredressal that exist at Pfizer.

CORPORATE AFFAIRS

The Corporate Affairs Division works in the domains of Government Relations PublicPolicy External Communications Patient Advocacy and Corporate

Social Responsibility. During the year under review the division undertook numerouspolicy advocacy initiatives; stakeholder engagement outreach;campaigns to build corporateand therapy area reputation and community and colleague engagement programmes.

Government Relations and Public Policy

Your Company's Managing Director Mr. S. Sridhar continues as the President of theOrganization of Pharmaceutical Producers of India starting February 2021. Pfizer alsocontinued as the Co-Chair of the Pharma Committee of the US India Business Council(USIBC).

a) Engagement through associations and direct advocacy:

Your Company undertook direct advocacy and also engaged with different governmentstakeholders through industry associations such as the OPPI FICCI PhRMA USIBC and USIndia Strategic Partnership Forum (USISPF) on several important policy level issues whichhave a direct impact on the business. Prominent issues which were advocated include theNational List of Essential Medicines Public Procurement Order Drugs and Magic Remedies(Objectionable Advertisement) Act authorised

import and trade of patented medicines in India strengthening of Intellectual Propertyeco-system inclusion of innovative therapies under Government Programmes among others.Your Company continued to participate and play an active role in leading the dialogue withrelevant government stakeholders and contributing recommendations on the above- mentionedpolicy level issues.

b) Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY):

Your Company has continued to engage with the National Health Authority (NHA)government entity responsible for implementation of AB-PMJAY for the inclusion ofinnovative therapies in the Health Benefit Packages of AB-PMJAY. Further to ourengagements for inclusion and funding models for pricing of these therapies NHA hasreleased consultation paper on the structured process for submission of proposals forinclusion under the Health Benefit Packages. Pursuant to the industry's engagement theNHA has also decided to constitute a Health Technology Assessment unit that will take upall proposals of inclusion of new technologies and therapies in the program - a positivemove that will provide a structured pathway for such new therapies to be offered toAB-PMJAY beneficiaries. NHA has shown interest in engaging with the industry and explorepossibilities that would institutionalise decision making and pricing process forinclusion of innovative therapies for the AB-PMJAY beneficiaries.

c) Adult immunisation:

Your Company strongly believes that adult immunization against vaccine preventablepneumococcal disease should be taken up on a large scale. Most Indian & Globalhealthcare societies recommend priority immunization against pneumonia for those who atrisk such as the elderly and those having co-morbid conditions especially patients withhigh-risk conditions of opportunistic infections like sickle cell disease and HIVpatients. Your Company has been front ending the discussion on the need for undertakingadult immunization with both the central and the state governments. We have partnered withthe US -India strategic Partnership Forum for a series of round tables to engage with keystakeholders from the government policy makers healthcare experts insurance companiesNGOs patient groups public and private sector health facilities to not only raiseawareness about the need for adult immunization but also make recommendations which couldlead to the development of a comprehensive policy at the national level for adultimmunization. We also continue to explore other avenues for inclusion of adultimmunization in specific government programs such as National Programme for Health Care ofthe Elderly (NPHCE) National AIDS Control Organisation (NACO) and State programmes forSickle Cell Disease patients.

d) Enhancing ease of doing business and patient centric policies: Your company remainsengaged with the Government on several aspects of Government policies that have a directimpact on ease of doing business and positively impact patients. Towards this yourcompany undertook a number of initiatives:

i. Custom Duty Exemption on lifesaving drugs-

Your company engaged with the Department of Revenue Ministry of Finance through FICCIand other industry associations advocating for retention of customs duty exemptions oncertain lifesaving drugs. Consequent to these engagements these exemptions were retainedon key drugs thereby enabling the company to maintain and expand access to thesetherapies for patients

ii. Awareness generation for diseases such as Pneumonia- Your company engagedextensively with the Government to advocate for enabling provisions in current legislationto allow for awareness generation campaigns on vaccine preventable diseases such asPneumonia. This will continue to be a priority going forward given the positive impact onawareness on preventive adult immunization.

iii. Trade margin rationalization: Your company remains well aligned with theGovernment's intent to rational trade margins on drugs such that access can be maintainedand enhanced. Towards this your company remains engaged with the Department ofPharmaceuticals and the National Pharmaceuticals Pricing Authority such that awell-considered approach is followed that recognizes supplies to Government and volumesdelivered as a part of various access programs as distinct from sales to commercial tradechannels.

iv. National List of Essential Medicines: Your company engaged extensively with theExpert Committee responsible for revision of the NLEM providing relevant inputs to theCommittee on a rational and impactful revision of the list such that the most appropriatedrugs are included in this list with due consideration of emerging healthcare challengessuch as Anti-Microbial Resistance

v. Patient Advocacy

As a commitment and promise to patients and caregivers Pfizer launched a PatientCharter for India during the "Patient in Focus" week in October 2021. With thisyour Company has become the first country to give a framework to strengthen listening topatient's insights act on the received insights to make our Go-To-Market strategyaddressing the patient's need and to empower patient's voice in the country to enableaccess of our innovative treatment solutions.

Your Company collaborated with the Indian Institute of Digital Education (IIDE) totrain 30 senior leaders of Patient Organizations to

upskill their capabilities in digital space. Leaders were trained with a customisedmodule and were exposed to industry-leading practices and tools. Learnings have startedenabling them to leverage digital channels best and to expand and strengthen their reachto impact more patients.

Through the year over 45 Patient Organizations benefitted our capability developmentworkshops. Virtual workshops were organised in the area of clinical researchorganizational development and digital marketing.

External Communications

The External Communications team worked extensively to build Your Company's positivereputation in media and non-media platforms. Your Company continued to engage with thewide universe of external stakeholders including media the HCP community Government andindustry stakeholders. This helped us build thought leadership position for key therapyareas such as anti-microbial resistance immunization and others while showcasing ourcommitment towards important corporate responsibility initiatives. Your company and itsleaders participated in industry events and media stories on varied topics generating over5 billion positive impressions across print digital and electronic media.

The team also rolled out a new avatar of your Company's website-www.pfizerltd.co.inThis contemporary website will be your source of all information pertaining to yourCompany.

CORPORATE SOCIAL RESPONSIBILITY

The purpose of your company is to promote access to quality healthcare in the countryby nurturing innovations encouraging community involvement of our employees andsynergizing efforts in partnerships with government and other stakeholders for collectiveimpact.

This year the team continued to identify and work on projects that are aligned toPfizer's CSR priorities as listed below:

• Promote Indian innovation and Indian intellectual property with a focus onhealthcare;

• Undertake awareness and access programmes in partnership with NGOs governmentand healthcare providers in areas such as women and child health among others;

• Support Government national and/or state programs and priorities with linkagesto healthcare; and

• Participate in disaster relief activities.

Your Company's flagship CSR initiatives undertaken during the year under review gainedsignificant momentum leading to high-impact outcomes.

Pfizer along with NGO partner Americares India Foundation (AIF) has rolled out twomajor projects to combat India's AMR challenges.

a. Project Parivartan focusses on addressing the current Infection Prevention andControl (IPC) challenges in healthcare facilities. In this multi-year project yourCompany is supporting

the development of a model for "Institutional Capacity Building" to deliverfacility-based IPC and Anti-Microbial Stewardship among 11 small and mid-size hospitalsacross India.

b. Pfizer along with an NGO partner launched an online learning program calledOPEN-AMR for healthcare workers to offer access to quality training on InfectionPrevention and Control (IPC) across India. The project provides AMPS/ IPC module as perthe WHO guidelines. The platform is accessible free of cost with certification in sixlanguages (English Hindi Tamil Telugu Malayalam and Marathi). It was launched in theAMR Summit the first ever E-Summit to be held in India supported by Pfizer implementedby Americares India Foundation (AIF).

The Indian Council of Medical Research (ICMR)- Pfizer collaboration aims at enhancingthe existing AMR Stewardship Program with a focus on awareness. The project helps toaddress the growing threat of antimicrobial resistance (AMR) in India. As a part of theproject nine ICMR network hospitals have been adopted and being trained in AMSP (anddesignated as Nodal Champions) who in turn would adopt and mentor 5-10 small hospitalsboth private and government in their region with a total of 50-70 hospitals onstewardship. Separately an additional number of 120 nursing homes/hospitals have beenconsidered only for stewardship training.

The Pfizer-ACF (Tata Trusts) Cancer Care

Project has been set up to work with the high-risk population that require healthcareattention. Overall this project aims to serve as a one-stop information and supportcentre for patients and families at Tata Trusts' key cancer hospitals. Alamelu CharitableFoundation (ACF) was established by Tata Trusts to support the setup of a comprehensivehealthcare network across India. The program is in the first Phase of its operation andincludes the following:

• Health and wellness kiosks in Ranchi Diphu Silchar and Tirupati. The kiosksprovide services such as counselling and interactive sessions on preventing cancer andlifestyle-related disorders to reduce the risk of non-communicable diseases (NCD)counselling session for smoking cessation and prevention screening for Oral Cervical andBreast cancer general physician examination and basic laboratory investigation mainlyhaemotological serological and bio- chemical test etc.

• Community outreach and early detection for NCD screening of catchmentpopulation and referral to the nearest centre.

• Set-up and operationalisation of a patient referral and tracking platform.

• Manage and operate a virtual patient helpdesk complemented by one on-sitepatient navigator

in OPD and day care centers in the four locations.

The project in its first year of operation has positively impacted lives of over1000000 beneficiaries and over 1500 healthcare workers. This project is a breakthroughin providing access and high-quality consistent care as the primary objective of theprogramme.

As a part of the Company's CSR initiative your Company has partnered with NGO Doctorsfor You to set up physical helpdesks at 10 high burden cancer hospitals across India. Theaim of the initiative called Project Aastha is to improve the treatment experience forcancer patients throughout their journey by handholding them and their caregivers throughthe diagnosis treatment and rehabilitation phases.

Pfizer's Healthcare Innovation Project that started in 2015 in partnership with IITDelhi (Pfizer-IIT Delhi Innovation and IP Program) has supported 28 Indian innovators tilldate. The programme's Version 2.0 "Pfizer INDovation" was rolled out inpartnership with Social Alpha - a healthcare accelerator company focusing on supportingstart-ups with specific themes in healthcare for 24 months. In 2021 the focus would be onOncology and Digital Health. This unique partnership model that brings together close to20 partners from the healthcare ecosystem is designed to provide funding resourcesexpertise and infrastructure to propel India's healthcare innovations from prototype tomarket. The program envisages active support for venture acceleration from other marketinvestors. The objective of this programme is to nurture support celebrate and rewardhealthcare innovations that are 'Made in India'. The project funded by Pfizer would beunencumbered in nature with all rights of innovations being owned by the innovators.

Your Company is working towards developing the village of Kaulale Jawhar under thePfizer Sustainable Village Transformation Project

with BAIF Institute for Sustainable Livelihoods and Development as the implementationpartner. At present work is ongoing in nine villages of the same Gram panchayat Kaulalefor proposed integration of the key components for holistic village development this yearto achieve several development ideals that include but are not limited to :

• Clean drinking water and sustainability of water sources.

• Quality education for all (primary education).

• Safe food and nutritional security for all.

• Safe sanitation facilities and access to quality curative and preventivehealthcare services through awareness.

• Livelihood security and financial inclusion.

• Optimal use management and sustainability of natural resources andconservation of biodiversity.

COVID-19 relief efforts in India:

Your Company's efforts during the pandemic includes

Yamuna Sports Complex Covid Care Centre (Doctors for You):

Yamuna Sports Complex Covid Care Centre (YSC CCC) provides Covid Care facility runningfever clinicsaddressing Post Covid complications at the community areas and reaching outto vulnerable people in need of essential health care services at their doorstep throughMobile Medical Unit interventions.

YSC CCC was started in the month of April 2021 (during second wave of Covid 19). Thecentre managed around 20000 mild to moderate symptomatic Covid patients out of which 43%belong to the Geriatric population 50 double bedded Pediatric HDU Pediatric ward andChild friendly space was added to the facility.

2 PSA Oxygen plants were installed to meet oxygen demand in case third wave strike.Amid Omicron led third wave of Covid YSC CCC was revived again into a 400 beddedfacility all oxygen supported beds. 2 more oxygen plants are installed in the facility.350+ patients benefited from this project.

Magnex Forte 3g Product Donation for Covid 19 Relief (Americares India Foundation) :

Your Company donated around 11 Lakh vials of Magnex Forte 3g to healthcare institutionsacross India for use in the treatment of patients suffering from Covid 19.

Your Company is pleased to inform that it has met its CSR spends obligation. A briefoutline of the initiatives undertaken during the year and details of CSR projectsundertaken by your Company during the financial year under review are provided in theCorporate Social Responsibility Report which forms part of this Report and annexedherewith as "Annexure - A".

WHISTLE BLOWER / VIGIL MECHANISM

Your Company has established a Whistle Blower/ Vigil Mechanism through which itsDirectors Employees and Stakeholders can report their genuine concerns about unethicalbehaviour actual or suspected fraud or violation of the Company's code of conduct orethics policy. The said Policy provides for adequate safeguards against victimization andalso direct access to the higher levels of supervisors. The e-mail ID for reportinggenuine concerns is: 'corporate.compliance@pfizer.com'. In appropriate and exceptionalcases concerns may be raised directly to the Chairman of the Audit Committee at'Chairman. IndiaAuditcom@pfizer.com'. No person has been denied access to the AuditCommittee Chairman. A quarterly report on the whistle blower complaints received andaction taken thereon is placed before the Audit Committee for its review.

PREVENTION OF SExUAL HARASSMENT POLICY

The 'Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal)Act 2013' (the "Act") seeks to protect women colleagues against sexual

harassment in their workplace. Pfizer has specially designed training modules to helpall colleagues and contingent associates to understand what constitutes sexual harassmentin the workplace how to address it and Pfizer's role in preventing it. Your Company hasan Internal Complaints Committee constituted under the purview of the Act and have ensuredadherence to the Act.

The details of complaints filed and disposed of during the Financial Year under revieware as under:

Sr. No. Particulars Number of Complaints
1 Number of Complaints pending as on the beginning of the Financial Year 2021-22 Nil
2 Number of Complaints filed during the Financial Year 2021-22 1
3 Number of Complaints disposed of during the Financial Year 2021-22 1
4 Number of Complaints pending as on the end of the Financial Year 2021-22 Nil

DIRECTORS:

In accordance with the provisions of the Companies Act 2013 Mr. Milind Patil (DIN:02546815) retires by rotation at the ensuing Annual General Meeting and being eligibleoffers himself for re-appointment.

Mr. R. A. Shah (DIN: 00009851) ceased to be Independent Director and Chairperson ofthe Company with effect from close of business on February 12022. Your Directors wish toplace on record their appreciation of the distinguished association of Mr. R. A. Shah withthe Company and the invaluable contributions made by Mr. R. A. Shah during his tenure asan Independent Director and Chairman of the Company.

The Board of Directors of the Company at their Meeting held on February 3 2022appointed Mr. Pradip Shah (DIN: 00066242) Independent Director as the Chairman of theBoard of Directors of the Company with immediate effect.

All Independent Directors have given the declarations that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 and SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015.

Board Performance Evaluation

The Company has devised a Performance Evaluation Framework and Policy which sets amechanism for the evaluation of the Board Board Committees and Directors.

Performance Evaluation of the Board Committees and Directors was carried out throughan evaluation mechanism in terms of the aforesaid Performance Evaluation Framework andPolicy.

The performance evaluation of each individual Director the Board and Committees wascarried out through deliberations. The said performance evaluation was done based on theparameters stated in the templates designed under the aforesaid Framework and after takinginto consideration the guidance note issued by the Securities and Exchange Board of India.

Independent Directors' Meeting

During the year under review one Meeting of the Independent Directors was held on May26 2021 without the presence of the Executive Directors and Management Personnel. At thesaid Meeting the Independent Directors carried out performance evaluation ofNon-Independent Directors and the Board of Directors as a whole performance of Chairmanof the Company the quality content and timeliness of flow of information between theManagement and the Board based on the Performance Evaluation framework of the Company.All the Independent Directors were present at the aforesaid Meeting.

FAMILIARIZATION PROGRAM FOR

INDEPENDENT DIRECTORS:

Your Company has in place a Familiarization Program for Independent Directors toprovide insights into the Company's business to enable them to contribute significantly toits success. The Executive Directors and Senior Management make presentations periodicallyto familiarize the Independent Directors with the strategy operations and functions of theCompany. Your Company also circulates news and articles related to the Industry andprovide specific regulatory updates to the Independent Directors on a regular basis.

A brief summary of the major Familiarization Programs carried out during the year forthe Independent Directors is given below:

Sr. No. Particulars of the Programmes / Presentations Date No. of Hours
1. Pharma Market Industry 26.05.2021 4.00
Performance and Regulatory changes update 28.07.2021
03.11.2021
(Duration 1.00 hr each) 03.02.2022
2. Presentation on Hospitals Business Unit - Go-to-Market Strategy 28.07.2021 1.00
3. Business presentation on Vaccines 03.11.2021 0.75
4. Presentation on Go to 24.09.2021 1.00
Market Transformation 03.11.2021
Design Blueprint
(Duration 30 minutes each)
5. Presentation on the Performance Assessment & Compensation Planning 03.02.2022 0.50
6 Presentation on Go to Market Transformation Design Blueprint 03.02.2022 1.00
7. Presentation on Risk 22.09.2021 1.50
Management Framework and Key Business Risks (Duration 45 minutes each) 12.03.2022
Total 9.75

NOMINATION AND REMUNERATION POLICY:

The Board has on the recommendation of the Nomination and Remuneration Committee frameda policy for selection and appointment of Directors Senior Management Key ManagerialPersonnel and their remuneration. The Nomination and Remuneration Policy forms part ofthis Report annexed herewith as "Annexure - B".

MEETINGS OF THE BOARD:

The details of the meetings of the Board and Committees are provided in the CorporateGovernance Report which forms part of this Report and annexed herewith as "Annexure -G".

DIRECTORS' RESPONSIBILITY STATEMENT:

Your Directors make the following statements in terms of Section 134(3)(c) of theCompanies Act 2013:

a. that in the preparation of the annual financial statements for the year ended March31 2022 the applicable accounting standards have been followed along with properexplanation relating to material departures if any;

b. that such accounting policies as mentioned in Notes 2 and 3 of the Notes to theFinancial Statements have been selected and applied consistently and judgments andestimates have been made that are reasonable and prudent so as to give a true and fairview of the state of affairs of the Company as at March 31 2022 and of the profit of theCompany for the year ended on that date;

c. that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act 2013 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

d. that the annual financial statements have been prepared on a going concern basis;

e. that proper internal financial controls were in place and that the financialcontrols were adequate and were operating effectively; and

f. that systems to ensure compliance with the provisions of all applicable laws were inplace and were adequate and operating effectively.

KEY FINANCIAL RATIOS:

Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 we give below the key financial ratios:

Sr. Nos. Particulars FY 2022 FY 2021
1 Debtors Turnover Ratio 22.41 16.35
2 Inventory Turnover Ratio 2.14 1.84
3 Interest Coverage Ratio N.A. N.A.
4 Current Ratio 2.81 2.46
5 Debt Equity Ratio N.A. N.A.
6 Operating Profit Margin 28% 27%
7 Net Profit Margin 23% 22%
8 Return on Net Worth 23% 17%

The Debtors Turnover Ratio has changed by 37% mainly on account of improved creditmanagement. None of the other aforementioned ratios have undergone a change of more than25% as compared to the previous financial year.

The return on net worth is computed as net income by average shareholders equity. Thechange in return on net worth is primarily on account of Revenue growth along with higherefficiency.

AUDIT COMMITTEE:

The details pertaining to composition of Audit Committee are included in the CorporateGovernance Report which forms part of this report.

RISK MANAGEMENT POLICY:

The details pertaining to the Risk Management Policy are included in the CorporateGovernance Report which forms part of this Report.

RELATED PARTY TRANSACTIONS:

All Related Party Transactions that were entered into during the financial year were onan arm's length basis and were in the ordinary course of business. There are no materiallysignificant related party transactions made by the Company with Promoters Directors KeyManagerial Personnel or other designated persons which may have a potential conflict withthe interest of the Company at large. The Company had entered into materially significantrelated party transactions with Pfizer Service Company BVBA Belgium for purchase of rawmaterials bulk drugs and finished goods. The same is within the limit duly approved bythe members at the 65th Annual General Meeting.

All Related Party Transactions are placed on a quarterly basis before the AuditCommittee for approval and before the Board for consideration and noting.

The Policy on Related Party Transactions as approved by the Board is uploaded on theCompany's website ‘www. pfizerltd.co.in'. The weblink for the Policy is https://www.pfizerltd.co.in/files/Related-Party-Transaction-Policy.pdf

None of the Directors have any material pecuniary relationships or transactionsvis-a-vis the Company.

Pursuant to Section 134 of the Companies Act 2013 and Rules made thereunderparticulars of transactions with related parties as required under Section 188 (1) of theCompanies Act 2013 in the prescribed Form AOC-2 forms part of this Report and annexedherewith as "Annexure - C".

PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS:

The Company has not granted any loans guarantees and investments under Section 186 ofthe Companies Act 2013 for the financial year ended March 312022.

DEPOSITS FROM PUBLIC:

During the financial year under review the Company has not accepted any deposits frompublic and as such no amount on account of principal or interest on deposits from publicwas outstanding as on the date of the Balance Sheet.

DISCLOSURES OF ORDERS PASSED BY REGULATORS OR COURTS OR TRIBUNAL:

No orders have been passed by any Regulator or Court or Tribunal which can have impacton the going concern status and the Company's operations in future.

OTHER INFORMATION:

The information on conservation of energy technology absorption and foreign exchangeearnings and outgo stipulated under Section 134(3)(m) of the Companies Act 2013 read withRule 8 of The Companies (Accounts) Rules 2014 forms part of this Report and annexedherewith as "Annexure - D".

A table containing particulars of employees in accordance with the provisions ofSection 197(12) of the Companies Act 2013 ("the Act") read with Rule 5(1) ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 formspart of this Report and annexed herewith as "Annexure - E".

The information required pursuant to Section 197(12) of the Act read with Rule 5(2) ofThe Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 inrespect of employees of the Company forms part of this Report. However as per theprovision of Sections 134 and

136 of the Act the Report and Accounts are being sent to the Members and othersentitled thereto excluding the information on employees' particulars which is availablefor inspection by the Members through electronic mode up to the date of the ensuing AnnualGeneral Meeting. Any member interested in obtaining a copy of such statement may write tothe Company Secretary at the Company's Registered Office.

The Company does not have any subsidiary company or associate company or joint venturecompany.

AUDITORS:

The Auditors Walker Chandiok & Co LLP Chartered Accountants (Firm RegistrationNo. 001076N/N500013) were appointed as Statutory Auditors to hold office for a term of 5(five) years from conclusion of 66th Annual General Meeting till the conclusionof the 71st Annual General Meeting subject to ratification by members at theAnnual General Meeting. Accordingly Walker Chandiok & Co LLP would be completingtheir term as the Statutory Auditors of the Company at this 71st Annual GeneralMeeting.

The Auditor's Report for the financial year ended March 312022 do not contain anyqualification reservation or adverse remark.

The Board of Directors of the Company at their meeting held on May 20 2022 haverecommended the appointment of Messrs. B S R & Co. LLP Chartered Accountants (FirmRegistration No. 101248W/W-100022) as the statutory auditors of the Company. Messrs. B S R& Co. LLP have confirmed their eligibility for appointment under Section 139 read withSection 141 of the Companies Act 2013.

Messrs. B S R & Co LLP will hold office for a period of 5 (five) consecutive yearsfrom the conclusion of the ensuing 71st Annual General Meeting of the Companytill the conclusion of the 76th Annual General Meeting subject to the approvalby shareholders at the ensuing Annual General Meeting.

COST AUDITORS:

Pursuant to Section 148 of the Companies Act 2013 read with the Companies (CostRecords and Audit) Rules 2014 as amended from time to time the cost audit recordsmaintained by the Company is required to be audited. The Board of Directors had on therecommendation of the Audit Committee appointed Messrs. RA & Co. to audit the costaccounts of the Company for the financial year 2022-23 on a remuneration of '1400000/-(Rupees Fourteen Lakhs only). As required under the Companies Act 2013 the remunerationpayable to the Cost Auditor is required to be placed before the Members in a generalmeeting for their ratification. Accordingly a Resolution seeking Member's ratificationfor the remuneration

payable to Messrs. RA & Co. Cost Auditors is included at Item No. 5 of the Noticeconvening the Annual General Meeting.

Your Company is required to maintain the cost records as specified by the CentralGovernment under sub-section (1) of Section 148 of the Companies Act 2013. Your Companyhas accordingly maintained the same and has filed the Cost Audit Report for Formulationsand Compliance Report for the financial year ended March 31 2021 on October 112021which is within the stipulated timeline prescribed under the applicable regulations. TheCost Audit Report for Formulations for the financial year ended March 31 2022 is due tobe filed by October 26 2022.

Messrs. R. A. & Co. have confirmed their eligibility to be the Cost Auditors andhave been appointed to conduct Cost Audit of the Company's records for the financial yearending March 31 2023. The remuneration is subject to ratification by the shareholders.

SECRETARIAL AUDIT:

Pursuant to the provisions of Section 204 of the Companies Act 2013 and The Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hasappointed Messrs. Saraf & Associates a firm of Company Secretaries in Practice toundertake the Secretarial Audit of the Company. The Secretarial Audit Report forms part ofthis Report and annexed herewith as "Annexure - F". The Secretarial Audit Reportfor the financial year ended March 31 2022 does not contain any qualificationreservation or adverse remark.

ANNUAL SECRETARIAL COMPLIANCE REPORT:

The Company has undertaken an audit for the financial year 2021-22 for all applicablecompliances as per SEBI Regulations and Circulars/Guidelines issued thereunder. The AnnualSecretarial Compliance Report has been submitted to the stock exchanges within 60 daysfrom the end of the financial year under review. The Annual Secretarial Compliance Reportis available on the Company's website at www.pfizerltd.co.in

COMPLIANCE WITH SECRETARIAL STANDARDS:

Your Directors confirm that the Secretarial Standards issued by the Institute ofCompanies Secretaries of India as applicable to the Company and which are mandatory innature have been duly complied with.

ANNUAL RETURN:

Pursuant to Section 92(3) read with Section 134(3)(a) of the Companies Act 2013 andrules made thereunder the

Annual Return of the Company as on March 31 2022 in Form MGT-7 is available on theCompany's website at https://www.pfizerltd.co.in/files/Pfizer-Limited_Draft-Annual-Return-MGT_7-_FY-2021-22.pdf

RESPONSIBILITY REPORTING:

A Report on Corporate Governance along with a Certificate from Walker Chandiok & CoLLP regarding compliance with the conditions of Corporate Governance as stipulated underRegulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 forms part of this Report and annexed herewith as "Annexure - G".

A Business Responsibility Report as stipulated under Regulation 34(2) of SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 describing the initiativestaken by your Company from an environmental social and governance perspective forms partof this Report and annexed herewith as "Annexure-H".

CAUTIONARY NOTE

Certain statements in respect to Management Discussion and Analysis may be forwardlooking and are stated as

required by the applicable laws and regulations. The future performance of the Companymay be affected by many factors which could be different from what the Directors envisagein terms of future performance and outlook.

ACKNOWLEDGMENTS

Your Directors would like to place on record their sincere appreciation for the supportand assistance extended by the Company's suppliers and business associates. Your Directorsare thankful to the esteemed shareholders for their continued support and the confidencereposed in the Company and its Management.

Your Directors wish to place on record their appreciation for the support and guidanceprovided by its Parent Company Pfizer Inc. USA.

For and on behalf of Board of Directors
Pradip Shah
Chairman
Mumbai May 20 2022 DIN:00066242

.