Investor Presentation November 2020

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This presentation contains comments and forward-looking statements based upon current plans, expectations, events, and financial and industry trends, which may affect the Company‘s future operating results and financial position. Such statements involve risks and uncertainties which cannot be predicted or quantified, and may cause future activities or results of operations to differ materially from those discussed herein. Historical results achieved are not necessarily indicative of future profits of the Company. For further information, refer to the Company's filings with the SEC.

Taro occasionally uses numerical measures in investor presentations and other forums which are considered non-GAAP Financial Measures. The Company believes that the presentation of non-GAAP measures, in combination with comparable GAAP measures, together provide our investor community with useful supplementary information concerning the Company's ongoing operations and are an appropriate way to evaluate the company's performance. However, they are provided for informational purposes only.

Forward-looking statements are applicable only as of the date on which they are made. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.

Safe Harbor Statement

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Reaching People and Touching Lives Globally as a Leading Provider of Valued Medicines.

Vision

Company Overview Fully Integrated Pharmaceutical Company

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Research-based, multinational pharmaceutical company

Predominantly US driven business (92% of sales in North America)

Diverse portfolio of 200+ pharmaceutical products

Generic Rx and OTC

Key therapeutic categories: dermatological/topical, neuropsychiatric, cardiovascular, and anti-inflammatory

Operations in the U.S., Canada and Israel with 1,500+ employees worldwide

35% of employees in R&D and Quality

Market Share

Ranked #1 or #2 in 70+% by market share in the U.S. generic market

Excellent track record with FDA & Other Agencies

Fully Compliant

Vertical Integration of API and formulation of select key products

Financial

Sun Ownership: 77.1%

Strong Balance Sheet

High margins, strong cash generation from operations

Company Overview Key Dates in Taro History

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1950 ─ Established in Israel to manufacture finished pharmaceutical products 1961 ─ Started chemical synthesis (API production) in Israel

1984 ─ Established topical product operations in Canada 1988 ─ Entered U.S. market 2003 ─ Established branded presence in U.S. 2010 ─ Sun Pharma acquires controlling interest in Taro 2012 ─ NYSE Listed Share Repurchase Programs:

2013 ─ $193M (Dutch Tender Offer): 2.0M shares 2016 ─ $250M (10b5-1): 1.8M shares 2017 ─ $250M (10b5-1): 2.5M shares 2019 ─ $300M announced; $25M (Dutch Tender Offer): 281K shares

Special Dividend: 2018 ─ $500M: $12.86 per share

Strategy and Opportunity Complex, niche products

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CREATE SUSTAINABLE REVENUE STREAMS

Differentiation: Technically

complex products

Regulatory barriers to entry

Speed to market

COST LEADERSHIP

Vertical integration : Development

through Manufacturing (API and

Finished Dosage)

Optimize operational costs

BALANCE PROFITABILITY AND INVESTMENTS FOR FUTURE

Development of complex generics

Growth both organically and through strategic

business development

Research Strategy Technically complex products, Regulatory barriers to entry

Current State (10/31/20)

220 Approved US FDA ANDAs

18 ANDAs awaiting FDA approval

Generic products with sustainable profitability

Topicals and other niche products with high clinical and regulatory barriers to entry

Technically complex manufacturing

Opportunity for API synthesis

Proprietary products

Innovative products for unmet needs

Niche markets – mainly in dermatology

Chemical Synthesis/API

Developing and manufacturing for most of our top products

59 Drug Master Files (DMFs) currently submitted to FDA

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March 31,2016

March 31,2017

March 31,2018

March 31,2019

March 31,2020

$71.2 $70.6 $70.4

$63.2 $59.8

Research & Development Investing for the future ─ $335 million over 5 years

(in millions)

6 mos. 9/30/20 6 mos. 9/30/19

$29.5

$29.0

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ANDA Filings Growing our pipeline of quality products

Note: ANDA Filings are presented on a cumulative basis since 1978. FY 2021 data is presented through November 2020.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

178 187

198 207

216 224

230 235 236

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ANDA Approvals Strong success in approvals

Note: ANDA Approvals are presented on a cumulative basis since 1978. FY 2021 data is presented through November 2020.

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

160 164 168 172 181

193 203

211 219

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Taro Israel Manufacturing, Research, Marketing & Distribution

API Development and Manufacturing

Fully Compliant ─ Approved by FDA, IMH and Accreditation of foreign manufacturing

900,000 sq. ft. manufacturing facility

700+ employees

51 Molecules for Israel Market / 250+ products manufactured Therapeutic Areas – Dermatology, Pain, Gastro, Cardiology and Dental

Manufactures 100+ finished dosage form products for sale in Israel and export

Primary product lines: Dermatology: Rx and OTC semi-solid and liquid products (creams, ointments, lotions & gels) Cardiology and Neurology: Prescription oral dosage products Gastroenterology: Rx and OTC (Nexium, Normalax & Meroken) Oral analgesics, Rx and OTC Oral Central Nervous System (CNS) - Rx OTC nasal sprays Allergy (Antihistamine): OTC oral dosage products

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Taro Canada Manufacturing, Research, Marketing & Distribution

Fully Compliant ─ Approved by FDA and Health Canada

245,000+ sq. ft. manufacturing facility

500+ employees

Marketing and distribution of brand, generic and OTC products for the Canadian market

Ranked # 6 in the Canadian generic market 160+ products sold in Canada

Manufactures 200+ finished dosage form pharmaceutical products

Primary product lines: Dermatology: Rx and OTC semi-solid products

(creams, ointments and gels) and liquids Injectables and specialty products Solid-oral generic medicines

+$200 MM in sales

Taro Canada Top 10 Products

MAT Sep. 2020 Sales CAD $ MM

Testosterone $13.8

Betaderm $13.8

Mometasone $12.2

Atorvastatin $12.1

Warfarin $11.4

Clobetasol $8.8

Clotrimaderm $8.3

Bupropion XL $7.9

Mupirocin $6.7

BP Clindamycin $4.9

Source: IQVIA MAT Sep 2020

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Taro USA Headquarters and Distribution Center

Source: IQVIA MAT Sep 2020

Headquarters – Hawthorne, New York 130+ employees

Distribution Center – Cranbury, New Jersey 300,000 sq. ft. 70+ employees Solar powered

Marketing and distribution of generic products in the U.S. market

Dermatology: Rx and OTC semi-solid products (creams, ointments & gels) and liquids

Rx $709 MM in sales

Taro USA Top 10 Products

MAT Sep. 2020 Sales USD $ MM

Carbamazepine Tab ER $55.2

Dapsone Gel $53.9

Tretinoin Cream $36.5

Terconazole Cream $27.1

Warfarin Tab $24.7

Fluorouracil Cream $22.9

Ketoconazole Cream $20.7

Carbamazepine Tab $20.0

Enalapril Maleate Tab $20.0

Metronidazole Gel $18.5

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Net Sales Composition North America and Derm Focused

Source: Taro 2020 Form 20-F

63% 17%

6% 3% 11%

Dermatological & Topical

Neuropsychiatric

Cardiovascular

Anti-inflammatory

Other

77%

15%

7%

1%

By Country

U.S.A.CanadaIsraelInternational

By Product Type

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Growing our business: 3 commercial pillars Fiscal Year 2020

$496 million

USA

$98 million

Generics

OTC

Canada Israel & Int’l

$51 million

OTC Generics

Generics

OTC

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Strong presence in U.S. distribution channels

Major U.S. drug wholesalers, smaller wholesalers and distributors

All major retail pharmacy and food chains

All major mass merchandisers

Integrated health organizations Pharmacy Benefit Managers (PBMs)

Group Purchasing Organizations (GPOs)

Long-Term Care Providers (LTCs)

Health Maintenance Organizations (HMOs)

Institutions

Government V.A., State Medicaid formularies, others

Excellent service levels

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Key Financial Ratios Full-year results

Gross margin Net margin

EBITDA margin Earnings per share

2016 2017 2018 2019 2020

82% 76%

70% 67% 62%

2016 2017 2018 2019 2020

57% 52%

32%

42% 38%

2016 2017 2018 2019 2020

66% 60%

48% 47% 42%

2016 2017 2018 2019 2020

$12.62 $11.05

$5.27

$7.23 $6.35

Taro Income Statement Current 6 month and full year comparisons

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As Reported

2020

Proforma

20202019 2020 2019

(unaudited) (unaudited) (unaudited) (audited) (audited)

Sales, net 260,477$ 260,477$ 322,146$ 644,769$ 669,893$

Cost of sales 113,943 113,943 118,819 245,044 224,169

Gross profit 146,534 146,534 203,327 399,725 445,724

Operating Expenses:

Research and development 29,484 29,484 28,982 59,777 63,238

Selling, marketing, general and administrative 46,323 46,323 43,370 93,413 89,971

Settlements and loss contingencies 478,924 — (150) — (3,678)

Operating income (loss) (408,197) 70,727 131,125 246,535 296,193

Financial (income) expense, net:

Interest and other financial income (12,988) (12,988) (18,481) (33,645) (33,542)

Foreign exchange (income) expense (829) (829) (7,860) (14,837) (25,309)

Other gain, net 1,929 1,929 1,676 3,018 1,810

Income (loss) before income taxes (392,450) 86,474 159,142 298,035 356,854

Tax expense 12,444 12,444 36,691 53,485 74,732

Net income (loss) (404,894) 74,030 122,451 244,550 282,122

Net (loss) income attributable to non-controlling

interest (15,108) (142) 90 309 345

Net income (loss) attributable to Taro (389,786)$ 74,172$ 122,361$ 244,241$ 281,777$

March 31,September 30,

Year EndedSix Months Ended(In thousands)

Balance Sheet Highlights Strong Balance Sheet - Cash Rich ($1.5 billion), No Debt

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September 30, March 31, March 31,

2020 2020 2019

ASSETS (unaudited) (audited) (audited)

CURRENT ASSETS:

Cash and cash equivalents 498,796$ 513,354$ 567,451$

Marketable securities 543,204 595,383 481,883

Accounts receivable and other:

Trade, net 231,670 235,221 237,945

Other receivables and prepaid expenses 44,947 35,567 47,362

Inventories 167,213 153,073 148,079

TOTAL CURRENT ASSETS 1,485,830 1,532,598 1,482,720

Marketable securities 476,800 459,639 304,322

Property, plant and equipment, net 207,923 209,961 206,242

Deferred income taxes 143,297 106,693 110,974

Other assets 32,258 32,361 31,068

TOTAL ASSETS 2,346,108$ 2,341,252$ 2,135,326$

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables 39,967$ 28,858$ 35,060$

Other current liabilities 547,349 193,873 181,761

TOTAL CURRENT LIABILITIES 587,316 222,731 216,821

Deferred taxes and other long-term liabilities 40,047 8,762 7,383

TOTAL LIABILITIES 627,363 231,493 224,204

Taro shareholders' equity 1,727,957 2,103,864 1,905,536

Non-controlling interest (9,212) 5,895 5,586

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 2,346,108$ 2,341,252$ 2,135,326$

(In thousands)

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Cash Flow Significant Cash Flow Generation

As Reported

2020

Proforma

20202019 2020 2019

(unaudited) (unaudited) (unaudited) (audited) (audited)

Cash flows from operating activities:

Net (loss) income (404,894)$ 74,030$ 122,451$ 244,550$ 282,122$

Adjustments required to reconcile net income to net cash

provided by operating activities:356,747 (19,361) 907 27,055 41,587

Net cash (used in) provided by operating activities (48,147) 54,668 123,358 271,605 323,709

Net cash provided by (used in) investing activities 32,791 32,791 (130,142) (298,162) 257,136

Net cash used in financing activities — — — (26,984) (588,849)

Effect of exchange rate changes on cash and cash equivalents 798 798 — (556) (1,156)

Decrease in cash and cash equivalents (14,558) 88,257 (6,784) (54,097) (9,160)

Cash and cash equivalents at beginning of period 513,354 513,354 567,451 567,451 576,611

Cash and cash equivalents at end of period 498,796$ 601,611$ 560,667$ 513,354$ 567,451$

Six Months Ended September 30, Year Ended March 31,(In thousands)

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Shareholder value creation NYSE Listed in 2012

Special Dividend: $500 million ($12.86/share)

Share Repurchase Programs: 2013 Dutch Tender Offer: 2.0M shares ($193M)

2016 10b5-1: 1.8M shares ($250M)

2019 10b5-1: 2.5M shares ($250M)

2019 $300M Dutch Tender Offer announced; 281K shares ($25M)

Key financial metrics (December 2011 – March 2020) Net Sales: 3.0% CAGR

R&D Spend: 6.2% CAGR

Operating Income: 2.3% CAGR

Net Income / EPS: from $183 million / $4.11 to $244 million / $6.35

Free Cash flow increases over 1.4X from 2011 to $270 million at March 2020

Cash and cash equivalents (including bank deposits and short-term/long-term marketable securities)

$1.5 billion increased from $259 million

Company well positioned for medium & long-term performance

Taro Summary Overview

NYSE: TARO

www.taro.com