• Calculate the Herfindahl-Hirschman Index (HHI) of your industry -draw a conclusion about the intensity of rivalry from HHI result. Use the 5 largest companies (based on revenue) in the industry to calculate HHI.

• How is the overall intensity of rivalry? (high/low?) provide rationale.

EXHIBIT 4: COMPARATIVE FINANCIAL RATIOS Pfizer Merck Novartis 12.91 Research over Revenue % 15.74 Revenue INR Mil 48,851 Gross Margin % 80.3 Operating Income INR Mil 11,824 Operating Margin % 24.2 Net Income INR Mil 6,960 Earnings Per Share INR 1.11 Dividends INR 1.12 Payout Ratio % * 82.7 Shares Mil 6,257 Book Value Per Share * INR 10.82 Operating Cash Flow INR Mil 14,512 Cap Spending INR Mil -1,496 Free Cash Flow INR Mil 13,016 Free Cash Flow Per Share * INR 2.22 Working Capital INR Mil 14,405 Tax Rate % 22.2 Net Margin % 14.25 Asset Turnover (Average) 0.29 Return on Assets % 4.13 Financial Leverage (Average) 2.59 Return on Equity % 10.24 Return on invested Capital % 7.11 Interest Coverage 8.48 Source: Morningstar.com 16.97 39,498 62.2 6,928 17.5 4,442 1.56 1.81 48.4 2,841 16.39 12,421 -1,283 11,138 1.65 10,561 17.44 11.25 0.39 17.73 50,387 65.5 8,977 17.8 17,783 7.29 2.67 77.7 2,403 32.31 11,897 -3,505 8,392 3.97 -863 13.6 35.29 0.39 13.84 1.71 24.06 19.28 13.16 Bristol Johnson Myers & Squibb Johnson 35.79 16,560 70,074 76.4 69.3 1,890 18,065 11.4 25.8 1,565 15,409 0.93 5.48 1.49 2.95 139.6 55.6 1,679 2,813 9.08 25.86 1,832 19,279 -820 -3,463 1,012 15,816 0.64 5.3 2,398 32,463 21.47 19.73 9.45 21.99 0.51 0.53 4.78 11.65 2.23 1.88 10.75 21.87 7.83 17.55 12.29 35.78 4.44 2.28 9.52 6.74 9.04 Operating Revenues CAGR 1% Yr. Eng Index Basis (2006 = 100) 2016 2015 2014 2013 2012 2014 ac AMPH : ENDF DEC DEC SUPN BR D Ad ES g b A 2 ga A 6! AC w A N 464 EXHIBIT 4: COMPARATIVE FINANCIAL RATIOS Pfizer Merck Novartis 12.91 Research over Revenue % 15.74 Revenue INR Mil 48,851 Gross Margin % 80.3 Operating Income INR Mil 11,824 Operating Margin % 24.2 Net Income INR Mil 6,960 Earnings Per Share INR 1.11 Dividends INR 1.12 Payout Ratio % * 82.7 Shares Mil 6,257 Book Value Per Share * INR 10.82 Operating Cash Flow INR Mil 14,512 Cap Spending INR Mil -1,496 Free Cash Flow INR Mil 13,016 Free Cash Flow Per Share * INR 2.22 Working Capital INR Mil 14,405 Tax Rate % 22.2 Net Margin % 14.25 Asset Turnover (Average) 0.29 Return on Assets % 4.13 Financial Leverage (Average) 2.59 Return on Equity % 10.24 Return on invested Capital % 7.11 Interest Coverage 8.48 Source: Morningstar.com 16.97 39,498 62.2 6,928 17.5 4,442 1.56 1.81 48.4 2,841 16.39 12,421 -1,283 11,138 1.65 10,561 17.44 11.25 0.39 17.73 50,387 65.5 8,977 17.8 17,783 7.29 2.67 77.7 2,403 32.31 11,897 -3,505 8,392 3.97 -863 13.6 35.29 0.39 13.84 1.71 24.06 19.28 13.16 Bristol Johnson Myers & Squibb Johnson 35.79 16,560 70,074 76.4 69.3 1,890 18,065 11.4 25.8 1,565 15,409 0.93 5.48 1.49 2.95 139.6 55.6 1,679 2,813 9.08 25.86 1,832 19,279 -820 -3,463 1,012 15,816 0.64 5.3 2,398 32,463 21.47 19.73 9.45 21.99 0.51 0.53 4.78 11.65 2.23 1.88 10.75 21.87 7.83 17.55 12.29 35.78 4.44 2.28 9.52 6.74 9.04 Operating Revenues CAGR 1% Yr. Eng Index Basis (2006 = 100) 2016 2015 2014 2013 2012 2014 ac AMPH : ENDF DEC DEC SUPN BR D Ad ES g b A 2 ga A 6! AC w A N 464