What is the Shareholder value maximizing action

Growing sales in ROW Markets

Relatively Untapped Sales Potenital in the ROW Markets

Use of Cash and Untapped InOrganic Growth Shareholder Engagement, Accountability & Trust Communications in Investor Forums aiding Market Price Discovery Communications in Investor Forums aiding Market Price Discovery

Acquire assets in the market with $650-700m cash Start conducting Earnings call. Many shareholders are asking this for 3 years Present Taro's story to mutual funds in Investment Conferences.

Get coverage from Analysts.

Board Representation

Board representative of all shareholders. Board fully composed of nominees from Controlling shareholder

Reality/Facts 1. Taro's 2012 ROW sales was 1% of its sales 2. The only disclosure on this subject was made in SUN's call (40 mins into the call- Aug 9th Sun Pharma earnings conference call) where Taro's chairman Mr. Shanghvi admitted that some of Taro's products have demand in these ROW markets 3. Emerging markets are growing at significantly high pace . 1. Taro has acquired/in-licensed 1 dermatology asset Novexatin in the last 3 years 2. Taro has disclosed it will use cash for acquisition/business development 3. Perrigo, Actavis have acquired numerous companies in the last 3 years 4. Sun which gets the benefit of reporting 70% of Taro's cash on its balance sheet has acquired: Dusa(dermatology asset), URL and now Ranbaxy(to close by year end) 5. Taro's Cash an average of $500m for the last 2.5-3 years is earning ~1% 1. Shareholders have asked for earnings call and have received no response 2. Sun conducts earnings call 3. All NYSE listed Market peers Perrigo and Actavis conduct earnings call

Market's perception of Alignment(or lack there of ) with Shareholders Leading to Large discount to value

Needs Alignment

Needs Alignment

Needs Alignment

1. Shareholders have asked for attendance in Investment conf and have received no response 2. go to 6 Credit investment conferences Needs Alignment 1. Peers Until recently Suisse was the ONLY analyst firm covering Taro. 2. It appears Credit Suisse may have dropped coverage after covering for a short period. Several emails to CS Analysts covering Taro were not responded to. 3. Market peers are covered by 8-10 analyst firms Needs Alignment 1. While taro's independent directors were recently elected based of "majority of minority" vote, Bluemountain has questioned the "interest"/"lack there of" in a block of shares that were voted as minority. 2. Currently and for the last 3 years, Not 1 nominee in the board is nominee put forward by a minority shareholder 3. In light of past offers from SUN, an independent director from minority shareholder will lend independence and more credence to the board towards minority shareholders 4. The top 2 leading US proxy advisory firms recommended to vote for independent director nominees from minority shareholder Perfectly Aligned- Shareholders(Market) completely understand why a shareholder-value maximizing action is taken or NOT Taken and are in complete alignment with the Company/Board. Aligned - Shareholders more or less understand why particular shareholder-value maximizing is taken or NOT Taken and are in alignment with the Company/Board. Needs alignment - Shareholders DO NOT understand why shareholder-value maximizing action is taken or NOT Taken and more disclosures/shareholder engagement is needed to align them with Company/Board.

Needs Alignment

Course correction needed to remedy Market's perception

More disclosures on how and when this potential will be tapped More disclosures on why cash is not being used for Inorganic growth in the last 3 years (average cash balance of >$500m) and what is the future strategy for inorganic growth Conduct Earnings call and build trust with long term shareholders

Attend Investor Conferences Build relationship with 3-5 analyst firms

Provide at least 1 Independent Director seat to a minority shareholder