Sai Life Sciences Sustainability Report 2021

1 Building on the Sustainability Momentum Sustainability Report

2 The world is changing with the challenges becoming multidimensional. Many aspects of business and life were challenged by COVID-19. We took timely actions to support our multiple stakeholders. Our actions ranged from ensuring an effective crisis response, to safeguarding the well-being of our employees and to managing supply-chain disruptions. Such experiences build the realization of generating momentum by being responsible and committing to make progress towards higher goals despite difficult times. We belong to the pharmaceutical innovation value chain that expands access to medicines, one of the vital elements of the sustainability imperative. Our presence in global sustainability platforms is helping us undertake collaborative partnerships in this direction. Building on the momentum even while tackling day to day difficulties associated with COVID-19, our sustainability agenda --- our plan of action for people, prosperity, and the planet remained our focus. We continue taking critical measures that promote sustainable consumption and production, technological progress, and a values-driven approach. As we steadily address sustainability goals, we seek to become the chosen one by our key stakeholders. It is a steep learning curve, yet we choose this path as we are committed to playing our part in building a sustainable world. With this mindset, every change we are catalyzing at Sai----be it in our culture, or systems, or practices, all add up to make us agile and responsive to the needs of the patient by being customer centric while aiming for net positive impact. Sustainability at Sai Life Sciences

3 This is our second annual sustainability report, and it describes our progress based on our sustainability framework which encompasses- sustaining as a partner of choice, being an employer of choice, growing as an HSE champion of choice and becoming a neighbour of choice. Reporting period for this Sustainability Report: April 2020 to March 2021 Reporting cycle: Annual In accordance: This report has been prepared with the GRI Standards - Core Option Scope & Boundary • Corporate office, R&D & Manufacturing centres, India • R&D centre, Manchester, UK Scope of Reporting • Financial performance indicators: India, USA & UK • Environmental performance indicators: India & Manchester (only Hazardous waste & Electricity consumption) • Employee metrics: India & Manchester • Community performance indicators: India. About this report

4 Contents 5 Letter from our Chairman .............................................................. Message from our CEO .................................................................... About us ......................................................................................................... Sustainability Framework ............................................................... Governance .................................................................................................. Sustaining as a partner of choice ........................................... Being an employer of choice ....................................................... Growing as an HSE champion of choice .......................... Becoming a neighbour of choice ............................................. GRI content Index .................................................................................... Glossary ............................................................................................................. 6 8 14 18 20 36 47 62 67 74

5 Letter from our Chairman Dear Stakeholder, A consistent track record of over two decades has enabled Sai Life Sciences earn the trust of its stakeholders for its commitment and capability to deliver value. We take a holistic approach to ensure that whatever we do impacts each of our stakeholders in a positive way. Though the year 2020 was challenging and uncertain, our collective ability of being agile kept the momentum going. We viewed the pandemic as an opportunity to lead in a more positive and impactful way. The need to respond with agility, yet thoughtfully, was fully supported by our leaders and our people, helping us stay on track with the efforts to meet our sustainability goals. In 2019, we said that the momentum of sustainability is making Sai Life Sciences aspire to be the best for the world. As the world, including us, was dealing with the challenges of COVID-19, a break in the pharmaceutical supply chain serviced by CDMOs was imminent. However, our commitment and well-planned operations kept the supply chain productive and supportive of customers’ goals. Sai Life Sciences is pursuing a sustainable growth model drawing upon multidisciplinary talent in science and technology and a human-centered ethos—focused on customer delight, empowered people, and a team-based work environment. Our sustainability journey is strongly rooted in our core values of Integrity, Transparency, Ownership, Reliability, Respect, Collaboration, which serve as cultural cornerstones, giving us the strength to thrive. As we continue to operate in a world where COVID-19 related challenges are still not behind us, we are taking a call for an unrelenting response. Sustainability is at a turning point -- which means more focus on serving our customers who meet global unmet medical needs, taking concrete steps to address climate change, and keeping our operations sustainable and safe, while being connected to the community. Sincerely, K Ranga Raju Chairman

6 Message from our CEO Dear Stakeholder, As a new generation CRO-CDMO, we aim to be agile and flexible, bringing together professionals from multiple disciplines to find solutions that support rapid innovation and production. Our partners gain efficiency combined with quality, compliance, and a positive environmental footprint. Through SaiNxt, our transformation initiative, we have the vision to create a sustainable presence for value creation in the sector. We are at the midpoint of our SaiNxt transformation journey that we began in 2019 with a horizon of 4 years. Our intent: to create a lasting shift that would make us flexible, agile, and collaboration-ready. Despite experiencing one of the most challenging growth phases due to the pandemic, we remain determined and committed to fulfilling partnership goals. As a responsible corporate citizen, we stepped up our participation in addressing COVID-19 related challenges. We rapidly scaled support for both our people and the community. While healthcare support was organized and monitored to ensure safe operations, we never lost sight of the need for supply chain continuity taking proactive measures to meet customer commitments. Augmenting capabilities, building partnerships Innovator pharmaceutical and biotechnology companies are strategic in their partnerships with CRO-CDMOs and aim for speed, flexibility, and a wide range of capabilities. An accelerated pace of delivery is vital for them as they strive to create access to medicines and meet unmet patient needs. We seek to make a mark in the product pipelines of our innovator customers as we work with 17 out of 25 top pharma companies. Participating as a supply chain partner in the potential launch of 21 new medicines is in line with our vision of launching 25 new medicines by 2025. Our differentiators in customer engagement include a global R&D edge with advanced capabilities in science and technology, agile manufacturing operations with integrated sustainability priorities, and a competent team that is committed to customer-centricity. The SaiNxt initiative has strengthened our position as a partner of choice with notable progress across the organization in seven areas: • Growth in scientific depth and scale • Expansion in technology platforms and capabilities • Fully integrated discovery and development campus, built for speed • Global delivery model for biology and process chemistry • Augmented manufacturing facilities • Global customer outreach • Thrust on Sustainability Momentum on sustainability The sustainability agenda is an all-encompassing theme across our priorities. We believe that our business growth gains momentum as we strengthen our sustainability focus. Building on this momentum is our endeavor. Taking a leap of faith across process, technology, infrastructure, and people, we have achieved a critical shift in our cultural fabric, reflecting collaboration and accelerated delivery. With a continuous improvement mindset, our focus is on preventing waste, leveraging value-adding processes where our people are involved in ideating and executing projects under the SaiGO operational excellence initiative. Presenting below a few milestones in the reporting year across our sustainability principles of stakeholder partnership and prioritizing the planet: Prioritizing the planet • Renewable energy consumption exceeded our SDG goal and is currently at 13% of our total energy consumption • Implemented 10 energy conservation projects with a payback of 3 months • Achieved zero waste to landfill • Zero Liquid Discharge facility in our largest manufacturing facility • Applying Greenness index to 65% of our portfolio with potential positive benefits during manufacturing • Practice of sustainable chemistry – fit for purpose selection from a toolkit of scientific approaches - for e.g.: Catalysis, Bio-catalysis, and Flow chemistry that has the potential for better resource utilization. People-centricity • Empowering teams to undertake shop floor transformation by owning customer-centric KPIs, workplace safety, and resource management • Zero lost time injuries with frontline supervisors’ participation in HSE tours and comprehensive process safety management Emphasizing sustainability as part of the organization-wide transformation provides opportunities to be a forerunner in the customer ecosystem. “ ”

7 • Sai Gurukul - our award-winning digital learning & development management system which expands the competence of our talent with customized content • SaiGO initiative to define business processes to promote collaboration, particularly in technology transfer • Investment to the tune of USD 3 million by installing advanced containment systems capable of minimizing chemical exposure up to 1μg/m3 • In-house capability for monitoring chemical exposure, heat stress, personal noise dosimetry to personnel Community engagement We dedicated a significant part of the year and utilized 50% of our CSR outlay to help the community deal with COVID-19 challenges. Ranging from donation, supply of food and sanitation material, providing PPE and medical support, our teams were in the frontline giving their best engagement. We also altered our regular programs to serve the most emerging needs within the context of the pandemic. Recognition of our efforts Emphasizing sustainability as part of the organization-wide transformation provides opportunities to be a forerunner in the customer ecosystem. As we work with innovator pharmaceutical companies, we are aware of their commitments to address global sustainability challenges. We strive to play our part and enable them to build a supply chain that reflects sustainability as a priority. Our determined efforts are getting reinforced by our customers, industry associations, and professional membership organizations. • Sai has received two Excellence in Practice Awards from the Association for Talent Development-USA, for 2021 under Learning Technologies and Change Management categories. We were also awarded for Best Advance in Learning Technology by the Brandon Hall group. • Our flagship manufacturing facility received a 5-star rating for excellence in EHS practices at the 13th edition of the Confederation of Indian Industry’s (CII-SR) Excellence Awards. We also received the 21st National Award for Excellence in Energy Management for our manufacturing facility. We remain committed to working with our stakeholders to make a difference for our world. Thank you for taking the time to learn more about Sai’s sustainability efforts, goals, and achievements. Sincerely, Krishna Kanumuri CEO & Managing Director

8 About us

9 Tox to early phase supplies Commercial supplies Mid to late phase supplies Biology Medicinal & Synthetic chemistry DMPK Toxicology in vivo Pharmacology Discovery Development Manufacturing Computational chemistry Process R&D Analytical R&D Early Phase Scale-up Process Engineering Process Safety Services spanning the drug discovery continuum

10 Track record of making it better 100+ clinical stage programs served; 25 active commercial programs and 10 in Phase III 39 programs advanced from IND to phase I, II or III USA, EU, Japan > 95% of products manufactured serve these highly regulated markets. USFDA, PMDA 100% successful track record of regulatory inspections across our R&D and manufacturing facilities. 17 of the top 25 big pharma companies as well as several small and medium biotechs utilize our services. Diverse therapy areas Oncology, CNS, Inflammation, Antivirals, Rare diseases and more PSCI Membership Sai Life Sciences became Associate Member of PSCI ACS – GCI Membership Sai Life Sciences became Associate Member of ACS-GCI ISO 14001 & 45001 Corporate office, R&D and Manufacturing facilities are IMS certified

11 Boston Manchester San Francisco San Diego Ohio Indianapolis North Carolina New York Massachusetts Newcastle London Paris Leiden Berlin Tokyo Shanghai Zurich Milan Hyderabad Bidar R&D and manufacturing sites Commercial presence Strong global presence

12 Facilities overview We are headquartered in Hyderabad, India. We pride ourselves in our global reach and have multiple locations across the country as well as globally. Development Centre - Hyderabad and Pune, India Manufacturing Hub - Bidar and Bollaram, India Process R&D Lab - Manchester, UK Discovery Biology Lab - Cambridge, USA

13 Year in review Awards & recognitions 21st National Awards for Excellence in Energy Management Association for Talent Development Excellence in Practice Awards 5-star rating at CII-SR EHS Excellence Awards Revenue $103.9million Headcount 2195permanent employees Fixed assets $95.8million CSR contributions 0.3 $ million Profit after tax (PAT) $8.3million 700 in R&D 550 in Manufacturing 300 in Quality

14 Sustainability framework

15 What sustainability means to Sai? Sustainability is an engine for our growth as we actively integrate sustainability principles. We build on the 4 inter-related elements of our sustainability framework and generate compelling value for our stakeholders. Approaching Sustainability 1 4 2 3 Sustaining as a partner of choice Becoming a neighbour of choice Making a positive difference in the community through consistent participation Being an employer of choice Culture of empowerment, Learning & Development and access to diverse talent to accelerate scientific progress, safety, quality, & culture transformation Growing as an HSE champion of choice Green process development and responsible manufacturing by reducing environmental footprint and ensuring safe operations Operational excellence for delivery velocity, developing a science-driven, robust & scalable approach, demonstrate shared commitment to the end result We anchor ourselves in two practices to propel us to go the extra mile: • Partnering effectively with customers, suppliers, and employees – Emphasize developing strong partnerships from within with everyone in a team, committed to having the right culture to experience mutual gain and serve the patient • Championing the cause – for the planet and our society – Take care of the environment and our communities to make a positive difference.

16 Stakeholder Engagement and Materiality Assessment Our approach is to prioritize and seek the best possible impact for sustainability, driven by stakeholder engagement and materiality assessment. We revisited the materiality assessment undertaken in the reporting year 2019-2020. Our goal was to reiterate our commitment to integrate stakeholder inputs into our sustainability framework. Key stakeholder inputs and boundaries of action Quality, partner in meeting environment goals, safe process and workplace, cutting-edge practice in R&D and technology, robust process, On Time In Full delivery (OTIF) Customers R&D, Technology Transfer, HSE, Manufacturing, Quality, Program management, Operational Excellence Audit, Project review meeting, Customer feedback survey, Business Development meeting Meeting career goals, benefits, performance management, skill building, engagement & empowerment HR, R&D, Manufacturing, Operational Excellence Employee satisfaction survey, one on one discussion, departmental meeting, PMS review Employees Customer engagement, meeting business growth goals, Stakeholder engagement, cost efficiency, OTIF, Right first time Governance, Finance, Business Development, R&D, Manufacturing, HSE, Operational Excellence Board meeting, Management review, Investor meeting Investors/Board Suppliers Strategic partnership, support in meeting HSE and Quality goals SCM, Manufacturing Audit, Performance review meeting Community/NGOs COVID -19 response support, continuing engagement CSR, Manufacturing, HR, R&D Engagement meeting, Volunteering activity Regulators/Government Compliance HSE, Quality, Manufacturing, R&D Audit, Annual review Stakeholder Inputs Boundary Engagement mechanism Associations Best practices, Knowledge sharing HSE, Quality, HR, Manufacturing, SCM Conference, Events, Award application

17 Material Focus Areas We looked at the stakeholder inputs, grouping their interests into actionable areas. As the next step, we derived the key focus areas that matter most to Sai and our stakeholders. The focus areas are held together within the 4 elements in our sustainability framework. Looking ahead We have committed management attention and invested in people, processes and infrastructure to make sustainability a lived experience in the organization. We are looking forward to more momentum as we garner support from our multiple stakeholders. As we participate in the UN Global Compact, take up actions towards SA 8000 certification and define targets for diversity and inclusion, we are hopeful of co-creating and enhancing our sustainability framework to effectively serve our stakeholders. Compliance with regulatory, quality, HSE, labour & ethics requirements Shows the extent to which Sai has gained momentum in the material area Quality of science, robust process design, speed in technology transfer Sustaining as a partner of choice 2 Being an employer of choice Becoming a neighbor of choice Operational excellence, Sustainable manufacturing, quality, safety, delivery, cost efficiency Supplier engagement on EHS Employee development & Skill building Benefits & Performance management framework Employee engagement Diversity & Inclusion Infrastructure & supplemental support for education & health Livelihood training Volunteering 3 4 1 Growing as an HSE champion of choice Process safety & Industrial hygiene Energy efficiency Water & waste management Workplace safety

18 Governance

19 The Board along with its committees provides leadership and strategic guidance to the company’s management and ensures that the management adheres to high standards of ethics, transparency and disclosures. The Board’s objective is to create sustainable value for all stakeholders, provide vision to the company and oversee implementation of the Board’s decisions. Sustainability governance is embedded through the organization. At the Board level, the Management Committee has the ultimate responsibility for the management, target setting, performance, and long-term success and sustainability of Sai. Additionally, corporate and site level committees ensure the implementation and tracking of new initiatives as well as the identification of new opportunities. To focus effectively on issues and to ensure expedient resolution of diverse matters, the Board has constituted several committees with clearly defined terms of reference and scope. Currently, there are six Board committees and the composition and the terms of reference for these committees is determined by the Board from time to time. • Audit committee • Securityholders relationship/ investors grievance committee • Independent directors committee • Nomination & remuneration committee • Corporate social responsibility (CSR) committee • Vigil mechanism committee Board of Directors Effective Governance Dr. K. Ranga Raju Chairman Executive Krishna Kanumuri Managing Director Executive Rajagopala S Tatta Independent Director Non Executive Nandita Gurjar Independent Director Non Executive Raju A Penmasta Director Non Executive Mitesh Daga Director Non Executive Puneet Bhatia Director Non Executive

20 Sustaining as a partner of choice

21 Sai Nxt • Investing in R&D and • Technology infrastructure Embracing sustainability principles in line with our customers’ sustainability goals • Pursuing a higher percentage of renewable energy in the total energy mix • Scaling up with a mindset of responsible manufacturing with an emphasis on adopting green chemistry • Operational excellence for meeting customer needs by maximizing the efficiency of the process Partnering Ethos • Compliance • Quality focus Sustainability momentum for customer partnership Sai’s business model has evolved over the years and we are now a full-service CRO-CDMO offering end-to-end services across the drug substance discovery and development continuum. Our customer base has diversified across the spectrum starting from academia, start-ups, biotechs, emerging pharma, and large pharma companies spread across the US, UK, EU, and Japan. In keeping pace with the changing times, Sai has transformed itself into a global organization with operations and offices spread across these regions. In the journey of sustainable partnership

22 In the reporting year, we ramped up our R&D and technology infrastructure and accessed global technical expertise while creating local proximity for our customers. Put together, the emerging speed and agility are building a healthy momentum in the drive to build access to medicines. The following 7 key developments across the organization encapsulate the essence of the progress we have made through the Sai Nxt initiative: • Growth in scientific depth and scale • Expansion in technology platforms and capabilities • Fully integrated discovery and development campus, built for speed • Global delivery model for biology and process chemistry • New state-of-the-art manufacturing facilities • Global customer outreach • Renewed thrust on Sustainability Sai Nxt: En route to excellence

23 Partnering ethos that drives us the extra mile Our partnering ethos is firmly rooted in Transparency and Integrity. Our customer-facing project management structure along with electronically enabled data management helps our customers experience us as an extension of their developmental efforts. Our teams have the autonomy to make decisions that help us meet shared commitments, with a keen sense of turnaround time. On the integrity front, our audit outcomes, environmental and safety track record together make our customers trust that we are in it for the long haul as we translate sustainability principles into tangible actions. Compliance As a progressive company in the pharma outsourcing value chain, maintaining compliance is sacrosanct. Compliance is at the heart of everything that Sai does, and this is manifested in our quality and safety/sustainability track records. It involves many ongoing efforts and we are fully committed to that direction. Differentiating with customer delight champions One of our customers with whom we have associated since the year 2009, identifies customer delight champions in the MedChem team. We offer an integrated program that comprises services from CADD, Biology, DMPK, Toxicology, PRD and Manufacturing. The objective was to identify drug candidates for depression and various CNS indications (modulators of NMDA receptors). Currently, several candidates are in clinical stage development with more than 1500+ compounds made for the customer in the past 12 years. Overall, the relationship has transformed from customer to patron to research partner. Holistic approach for compliance management We have a compliance tool that helps us map and track all the relevant requirements across EHS, HR and other key areas. The tool offers an online dashboard to know the status of compliances, assign ownership and upload proof of compliance. Features include: • Web based application • User based and role driven • Real-time online dashboards on the status of compliances, remediation and notices

24 Quality remains our focus Our focus is on establishing the right systems and supporting our people to develop the skills for compliance and going beyond it to delight our customers. We are focused on meeting our customers’ quality requirements and keeping our systems audit-ready. With the same spirit, we address customer complaints, tackling them on time with the aim of being trusted partners. In one instance our customer has this to say, “Very good system in place to control all the areas like Warehouse, Manufacturing, Quality Control, Engineering, and Quality Assurance especially the use of electronic systems GMP Pro and ComplianceWire makes Sai a reliable partner.” Our customers recognize our training approach, globally experienced R&D and process engineering teams plus cGMP emphasis in kilo-lab facilities. Our quality management system components are constantly monitored, and the effectiveness of the new learning and development system is resulting in addressing quality management system components in a timely manner. Unit (April-2020 to Mar-2021) Total number of Audits Critical Observation Status Unit II 5 0 Closed Unit III 1 0 Closed Unit IV 9 0 Closed Success in Quality Audits Sai completed 15 quality audits during the reporting year. Despite challenges of carrying out remote audits, our teams fared exceedingly well and received favourable comments from key customers and their representatives. Overall, our cGMP practices, electronic systems for quality and the upkeep of the facilities is appreciated.

25 Greenness index Sustainable chemistry – fit for purpose selection from a toolkit of scientific approaches- for e.g.: Catalysis, Biocatalysis Our sustainability outlook helps us to meet strategic and business considerations and simultaneously achieve progress in addressing scientific and technical challenges. Sustainability momentum in R&D At the heart of our R&D culture: Meeting stakeholder expectations Technology platforms • Flow chemistry • Using process separations Distillation, Liquid-liquid extraction Crystallization

26 Global R&D edge The momentum for sustainability comes from the opportunity to move at the speed of science at our world-class R&D and technology centers in India, the UK, and the US. By harnessing the power of data and technology, green chemistry transformations, targeted analytical and development support, and operational excellence, our scientists and process engineers are empowered to effectively combine science and business goals. Data driven decision making We use cutting edge tools for statistical design of experiments and advanced automation in process design. We have access to innovative chemistry equipment that facilitates a rapid and more thorough understanding of process parameters and supports process optimization by identifying important factors quickly through insitu reaction monitoring. We are able to pursue accelerated scale up with the use of process modelling software and achieve reduction in deviations at scale. Integrating business workflows for better customer outcomes: SaiGO Contributing to a key part of development of new medicines requires several disciplines to work together collaboratively and harness innovation with a defined approach to make sure we deliver successfully. The SaiGo approach provides a framework to deliver innovation within a well-defined business process to ensure we meet customer needs. As we implement the different dimensions of the operational excellence model in R&D and Technology transfer, our focus is on effectively engaging diverse scientists as a cross functional team and navigating business related needs of speed, cost effectiveness and sustainability while immersing in science related new advances. • Addressing cost effectiveness and speed • Rapid start, fit for purpose route screening, selection and scale up • Phase appropriate analytical method development Early Phase Mid to Late Phase • Addressing the quality of science through – Detailed process development – Robust manufacturing process including green chemistry

27 Science-driven pipeline: Glimpses of few projects handled by us in 2020-2021 Flow chemistry to create safer and rapid reaction conditions Flow chemistry plays a key role in drug discovery, chemical process development, and manufacturing in the pharmaceutical industry. With the client tech pack, subject matter experts carried out a flow reaction in optimized process conditions. A detailed process safety study was carried out to know the level of exotherms. The R&D team focused on handling hazardous chemicals in flow, getting it first time right, running of a flow chemistry to meet safety and quality attributes and safe production of material in a continuous chemistry. The desired purity was (~95%) and % of dimer (< 4.0%). Sustainability thinking in action: Greenness Index With the adoption of the greenness index, we are seeking to embrace sustainability outcomes. While greening the process is welcome, the challenges are multifold. Yet, we are encouraged to boldly traverse the spectrum of areas, at laboratory scale, where sustainability can be integrated into route selection, the nature of starting materials, and then translated into the manufacturing process. Thegreenness index, our in-housedevelopedcomputationalmodel, enablesus to lookat these three aspects and many more to build a favorable environmental footprint. The environmental goal is dovetailed with cost-effectiveness, throughput, and scale-up viability--- a dynamic challenge that we address with R&D efforts and process technology. Our strategy of introducing green chemistry at the right time is paying off. We are witnessing a paradigm shift as we baseline customer-designed R&D or manufacturing process and value add with “greenness”, in medium to late-phase projects which comprise 65% of our portfolio. We seek to address potential long-term impacts arising out of a less green process and have formalized green chemistry-based transformation in the technical package. Customer Focus Our Contribution Developing precision-targeted therapeutics to treat patients with complex cancers. 1. Incorporated Tetra Ethylene Glycol chemistry and rapid support for validations by AR&D. Implemented scalable alternative for dry ice; optimized catalyst loading, removed DME (which is an unfavourable solvent due to toxicity). Developed a scalable route for multigram and kg synthesis of lead compound with +99.9% purity and enabled identification of the desired polymorph. Intermediate product involving Suzuki Coupling. 2. Innovative biopharmaceuticals for rare diseases driven by genetic causes. 3.

28 Green Chemistry implementation - Journey • Consultation with internal stakeholders on implementation of green chemistry principles for R&D process. • Development of framework to evaluate greenness index. • Literature review to arrive at computational model for calculating greenness index. of projects had improved Greenness index by • Inhouse computational model developed. • Development of solvent selection guideline. • Awareness sessions conducted for R&D team. • Announcement of 1st edition of Green Process of the Year award - Rotating trophy, certificates & financial incentives. • Formalized process for inclusion of green chemistry principles and framework as part of tech pack and process writeup. • Announcement of 2nd edition of green process of the year award - Rotating trophy, certificates and financial incentives. 27% >50% 2018 2019 2020-21 Green Process Awards (2020 & 2021) – Broad Performance metrics (pre vs post development) of projects had improved Greenness index by 10% 20% - 50% of projects had improved Greenness index by 47% 1% - 20% of projects had negative Greenness index (i.e. Greenness index had reduced from pre-development process) 13% of projects had no change in Greenness 3% Taking responsibility for sustainability

29 Operational Excellence aims to make customer- centric KPIs key for transformation Engaging shopfloor teams Reducing environmental footprint Sustainability momentum in manufacturing We are experiencing a significant change in the shop floor culture. The Area Effectiveness Team (AET), Service Effectiveness Team (SET), and Grass Root Team (GRT) at the shopfloor level promote and sustain employee engagement, prompt problem solving, and robust governance. The bottom line is in the value addition we can offer to our customers arising from the ownership culture we have seeded in the shopfloor in the following core disciplines. Building agility in the manufacturing value chain

30 Operational Excellence aiming to make customer centric KPIs key for transformation One of the areas that is building momentum for sustainability is the Shop Floor Transformation initiative (SFTI) under the umbrella of Sai GO, an organization-wide Operational Excellence (OE) program. It serves as a leading example of the daily, systemic improvements being pursued in the company with three overarching goals: Right first time, On-time in-full delivery (OTIF), and Customer Delight. We are in the third year of transformation with encouraging results in key performance indicators such as batch performances in terms of quality, yield and cycle times, OTIF, Development Technology transfer effectiveness, service level agreement (SLA) with Warehouse, Quality Control and Engineering, safety and sustainable environmental practices. We are pursuing a widespread impact from our Operational Excellence program, extending the program across the entire value chain of process development, technology transfer, and manufacturing. An important responsibility as we scale up processes from R&D to manufacturing is in accelerating our partnership goals through reliable manufacturing. Consequently, our focus is on getting it right-first time in manufacturing, beginning with error-free technology transfer. Accelerating technology transfer and manufacturing We are successfully integrating upstream activities of R&D in the OE program with dynamic collaboration between R&D, manufacturing and technology transfer. There is significant traction by setting-up critical trackers for walkthrough & technology transfer meeting effectiveness and online progress check. It is further strengthened through a decision- making platform and governance framework. Overall, the time taken for Technical Package (TP) and Batch Production Record (BPR) approval has now reduced by almost one fourth. TP approval - cumulative average 0 1 2 3 4 5 6 7 8 7.2 6.82 6.8 6.4 6.4 6.3 6.1 5.9 5.78 5.89 5.81 5.89 5.81 0 2 4 6 8 10 12 14 16 Avg. TP approval days No. of TP Linear (Avg. TP approval days) 4 7 14 6 3 7 6 5 6 6 6 5 7 Dec 19 to Mar 20 Apr 20 May 20 Jun 20 July 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Days SLA for TP approval - 4 days BPR approval - cumulative average 4.3 4.4 4.2 4.3 4.4 4.1 3.9 3.82 3.67 3.45 3.4 3.38 3.25 0 1 2 3 4 5 6 7 8 9 10 Avg. BPR approval days No. of BPR Linear (Avg. BPR approval days) 3 5 9 6 5 7 4 5 7 5 5 7 7 Days Dec 19 to Mar 20 Apr 20 May 20 Jun 20 July 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 SLA for BPR approval - 1 to 2 days

31 1 2 3 4 5 In our business, the KPIs that matter most are timely delivery and execution as planned. The SFTI has played an important role in deepening a culture of service with OTIF being tracked with a critical lens. We are steadily progressing with lean audits, shopfloor-based cross-functional teams including integration of QC into the SFTI. For our established products, the OTIF is on average 75% and we are addressing root causes which cause major delays to get more encouraging results. Specifically, we are focused on reducing batch charging delay and integrating technology absorption meetings as part of the back-end processes. Release time per batch actual vs plan for Finished goods, Raw materials, intermediates, etc. Finished Goods/Raw materials/Intermediate batches released per day/analyst Turn Around Time (TAT) for moisture release, pH release, High Performance Liquid Chromatography (HPLC) release, etc. High Performance Liquid Chromatography (HPLC) and Gas Chromatography utilization Invalid Out of Specification rate and Lab errors Significant QC improvement for timely product release The approach of mapping SLAs, benchmarked with innovator pharma companies is enabling us to prioritize activities in QC and to positively impact the outcomes of the manufacturing process. Key QC Metrics Time for release Throughput In process time release efficiency Effectiveness% Equipment Utilization

32 Reducing environmental footprint Energy management is a critical consideration in the way we manage our operations. Our approach to energy management is two-pronged- one, increasing energy conservation, and second, increasing the adoption of renewable energy. Working to be one of the most energy- efficient CRO-CDMO companies in the sector, we review benchmarks to learn and improve. Focusing on our environmental footprint by optimizing energy usage One of the measures to monitor our energy performance includes Specific Energy Consumption (SEC). Despite a 16% increase in production in Unit IV in the reporting year, the SEC reduced by 19%. The initiatives for improving performance in utilities and capacity utilization have together contributed to energy efficiency. 2016-2017 45.79 57.19 48.09 61.8 72.66 2017-2018 2018-2019 2019-2020 2020-2021 0 10 20 30 40 50 60 70 80 Our employees are also engaged in building a cost-conscious culture. The launch of the “Idea Box”, supported by a structured process for brainstorming and proper evaluation has generated more than 500 cost optimization ideas. This program leverages the culture of employee engagement and expands the scope to instill the importance of waste elimination and cost excellence. KPI UOM Unit 4 Unit 3 Unit 2 Jan 21-Mar 21 SPL NOS NOS NOS NOS % % Kaizen No. of AET&SET No. of abnormalities identified Abnormalities closure Lean Audit score 874 173 9 26340 78 93 25 12 6 1676 96 91 24 - 33 312 96 - Engaging shopfloor teams The SFTI is a bottom-up approach that has introduced a structure and tools to involve employees and make them play a larger role in problem-solving. Few of the key engagement mechanisms includeSinglepoint lessons,Kaizen, identificationofabnormalities, andLeanaudits.The performance across these KPIs in our two manufacturing units and in one R&D facility is visible as the AETs and SETs are actively engaged with their ideas to address bottlenecks. SEC (MTOE/Ton) w.r.t FG production

33 Sustainable procurement through supplier engagement We are committed to ensuring HSE, quality, and statutory related outcomes in our supply chain. Such a move is pivotal for risk mitigation, and it also has a positive upside as our customers recognize our engagement with our suppliers. We have qualified the Ecovadis assessment, a requirement of our global key customers, which has sustainable procurement as an important factor in the scoring criteria. The procurement cycle begins with an initial focus on qualification and then later building partnerships with strategic suppliers. Total new KSM vendors registered in FY21 Number of vendors who underwent HSE screening Percentage of vendors who underwent HSE screening 25 25 100% Strategic supplies and prioritizing sustainability By instituting a supplier code that emphasizes HSE management, statutory compliance, and quality management, we select and classify our suppliers as strategic. Almost 45% of our total supplier base, with 60% of our total spend allocated towards this base, are identified with the support of third-party agencies. As part of engaging and developing our suppliers, we also take a facilitative approach towards improvement which is mutually gainful across sustainability parameters. Additionally, we are developing product-specific engagement Initiatives which are focused on: • Encouraging value-added services • Procuring a basket of products to retain & engage the supplier • Initiating vendor managed inventory practice to progress transactional suppliers into strategic ones Improving the environmental footprint in our supply arrangement For a large volume raw material, where our annual requirement is approximately 130 tonnes per annum, we proactively engaged with the supplier to change the packaging material. By replacing paper-based packaging with re-usable containers, we have stopped disposing almost 10 tonnes of paper per annum.

34 Working with local suppliers We are consciously working on mitigating risks, learning from the challenges faced during the peak of the pandemic, with a clear goal of making the procurement process sustainable to reliably meet customer expectations. The aim is to spread our risk by simultaneously cultivating local suppliers for our key projects. The plan is to de-risk up to 30% of our key projects with 100% of the requirements getting met locally. An additional 30% of the projects would be supported with 50% of supplies getting procured from local suppliers. A similar shift is proposed in the area of capital equipment procurement, where close to 55% of our procurement would be 100% sourced from local sources. Vendor Mix for Direct Procurement Proposed Vendor Mix for Direct Procurement 100% Domestic Overseas and Domestic 100% Overseas Vendors 100% Domestic Overseas and Domestic 100% Overseas Vendors 1 2 3 4 5 6 7 8 0 Overseas Vendors Today, we are heavily dependent on overseas vendors for direct procurement Looking ahead we are taking steps to de-risk our supply chain by cultivating more local relationships with vendors Overseas Vendors 2021 2022

35 COVID 19 response - Partners Live virtual tour to sustain site inspections • Immersive walkthrough of facilities streamed via Microsoft Teams • >50 customer tour conducted during July 2020 to March 2021 • Enabled engagement of multiple stakeholders in customer organization • Proactively assessed and mitigated supply risks due to the pandemic • Diversified our supply base and transitioned rapidly • Fulfilling delivery commitment with an OTIF >97% • Zero downtime in manufacturing Supply chain continuity

36 Being an employer of choice

37 Create more opportunities for women and improve the percentage of women employees in the workforce to 12% by 2022 Continue to invest in and promote an environment of continuous learning and development to improve and motivate our workforce Ensure employee policies and benefits are updated in line with industry standards to retain and attract the best talent Sustainability momentum in people practice We aim to establish new mindsets and new ways of working within Sai. We have launched an array of different programs to support our workforce and the organization in achieving the best possible outcome. As we grow and increase our global footprint, creating a culture that unifies us and helps promote productivity and retain a talented workforce becomes increasingly important. Our approach to sustainably being an employer of choice is to ensure that we are a fair, consistent, collaborative employer and display an unwavering commitment and accountability to our employees. In this direction, we are defining new standards in our working practices and actively promote the skills of our employees. In a fast-paced and changing environment, especially as we deal with the challenges of COVID-19 we strive to incorporate the human element into our culture. Over the last year, we have updated our benefits and policies, career development frameworks, reward and recognition programs and training programs to work towards meeting our sustainability goals. Establishing a strong foundation for sustainability

38 Recruiting the best talent Our ability to recruit and develop the best talent directly impacts our stakeholders and promotes the long-term success of our business. Our recruitment strategy is key to attracting high-potential individuals from a wide range of backgrounds and to develop and retain them. During the reporting year, we expanded our workforce significantly. We moved quickly to implement new virtual e-learning platforms and streamlined procedures to accelerate onboarding amid pandemic restrictions. Sustainability momentum in people practices Number of new hires by age group 21-29 334 30-50 314 Over 50 7 21- 29 51% 30-50 48% Over 50 1% Rate of new hires by age group Number of new hires by gender Men 569 Women 86 Men 87% Rate of new hires by gender Number of new hires by region Telangana 377 Karnataka 208 Maharashtra 45 Manchester 25 Rate of new hires by region Telangana 57% Karnataka 32% Maharashtra 7% Manchester 4% Women 13% New Hire Highlights 86 women added to the workforce, higher proportion versus previous reporting year 13.5% New women hires Improving regional representation with 278+ hires from Karnataka, Maharashtra and Manchester 42% New hires from ex HQ locations Maintaining the talent ecosystem by employing a healthy mix of new hires under 30 as well as experienced talent Creating a balanced workforce Establishing roots in Manchester Sai Life Sciences Manchester was set up at Alderley Park in July 2020 with a Process Research and Development Center of Excellence to assist our customers in developing routes and processes to their small molecule drug substances. We have a growing team of 25 highly experienced scientists focusing on Route Design and Process Development and plan to recruit talent from the top UK Chemistry universities. The center of excellence provides high quality and efficient development, scale-up and technology transfer to the Indian sites and expands our diversity in talent and capabilities.

39 Benefits and policies In line with our commitment to retain and reward the best talent, we have also updated our benefits and policies over the last year. We have updated our group insurance and leave policies and increased the number of days of paternity leave from 3 to 5 days. For employees affected by the COVID pandemic, we set up a task force to take care of employees and their families. % employees by gender who took parental leave % employees who returned to work after taking parental leave Male 89% Female 11% Male 100% Female 37% % employees who returned & still employed for 12 months Male 83% Female 55%

40 Building a High Performance Culture We continue to benchmark and target pay, based on role-based performance. As an outcome of an external benchmarking exercise, over the last year, we have addressed employees’ compensation to match industry standards. Delivery Linked Performance Pay, External Compensation Benchmarking Introduction of DLPP, effective FY 22, for employees level 3 and above, initiating the move towards a performance based culture. Market corrections undertaken for Saimers in line with study findings from external benchmarking by Mercer. Role Based Rewards and Recognition Framework Provide more clarity on career progression and compensation in line with comparable roles in the industry. Career Counselling Cell Counselling cell targeted at ensuring every Saimer progressively reaches their full potential. Type of reward programs offered • Instant Recognition: To recognize instantly A job well Done • Team Recognition (SWAT) : To recognize teams exemplifying spirit of collaboration. • Project/department recognitions: SFTI awards, Project delivery awards, Customer delight awards, etc. Reward and Recognition Programs We launched multiple initiatives across our sites to energize, incentivize and channel the talents of our workforce. We aim to promote a culture of recognition in the organization with specific linkages to our organizational values and therefore engage and retain our talent. Through our R&R programs we also aim to reinforce particular behaviours, practices, or activities that result in better performance and positive business results. Features • Digital Platform • Point Based System • Recognition on the go, available on mobile • Flexi-rewarding % Split by gender of employees who received performance review and career development Percentage of total employees who received performance review and career development % Split by Employee category of employees who received performance review and career development Executive Level (Level 0, A, 1) Mid Management (Level 2&3) Top Management (Level 4,5,6) 46% 47% 7% *The % is calculated on the basis of total employee count at the end of the FY. The cut-off date for inclusion in annual appraisal for a given FY, is 1 Oct of that year. Employees who join after Oct 1st, shall be included in appraisal for next FY. Also, employees who are in notice period at the time of performance review are not included in the appraisal. Male 93% Female 7% * 59%

41 Accelerating the momentum through culture We communicate regularly and through a variety of channels to encourage two-way dialogue. One such initiative was the launch of the Saimer Cafe which is a quarterly magazine aimed at connecting employees across our sites and highlighting personal stories of our talented workforce and their families. This is in addition to our existing newsletter SaiGo that provides highlights of Saimer’s achievements. The reporting year was challenging due to higher engagement through virtual channels. However, we ramped up our efforts to keep our employees motivated and engaged across our sites. Over the last year, the SFTI program has been expanded across the organization. The initiative is enabling us to unify our culture by strengthening the orientation of our employees towards high performance and empower them in decision-making. At the same time, we ensure more efficient collaboration across functions within the organization. During the reporting period, we conducted a “Feel the Pulse” employee survey at Unit IV, Bidar. The survey had a participation rate of 88% and identified key areas of improvement. At Sai, we consciously work to create a culture of open dialogue with our employees and build an environment where everyone feels empowered to speak up.

42 Building a culture for sustainability Over the year we’ve found creative ways to engage with our employees and their families. A few initiatives are: We organized ‘Chitrakaar - Paint your imagination’, an exclusive drawing competition and exhibition for our associates and their families in Bidar. The exhibition provided an opportunity for Saimers and thir families to deepen bonds within the Sai community and express themselves in a year that was defined by limited physical social interaction. The theme for this year Women’s day celebration was ‘Choose to Challenge,’ which marked a call to action to challenge gender biases and inequality. Women Saimers chose parasailing as their challenge. It was a treat to watch participants fasten the harness, operate landing gear as instructed and touch down seamlessly.

RkJQdWJsaXNoZXIy MTIwMDc4NQ==