Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Investor Presentation (March 2022)
53 slides from Piramal Pharma's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022 0
Slide 2: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'intend', 'pl
Slide 3: Demerger and Simplification of Corporate Structure
Demerger and Simplification of Corporate Structure DRAFT
Slide 4: Demerger is expected to unlock significant value for stakeholders
Demerger is expected to unlock significant value for stakeholders Corporate Structure: Pre- and Post-demerger1 Strategic Rationale Pre-demerger Post-demerger1 Simplifies the corporate structure: Creates two separate pure-play entities in PEL Financial Services and Pharma Piramal Enterprises Limited
Slide 5: Piramal Pharma Limited
6 Piramal Pharma Limited Piramal Pharma
Slide 6: Solid Three-Pronged Business Model with Market Leading Positions
Solid Three-Pronged Business Model with Market Leading Positions CDMO (~62%1) Complex Hospital Generics (29%1) Consumer Top 3 in India and Health (9%1) 4th Largest Inhaled 13th Largest Globally2 11th Anesthesia Player Ranked in OTC Globally2 segment in India2 Global Footprint with a Robust Track Foc
Slide 7: Key Competitive Strengths
Key Competitive Strengths Market Leadership Infrastructure and Quality Patient Centricity Strong Market Position Global Footprint with a Focus on Customer and Across Segments Robust Track Record of Patient-centric Approach Compliance and Quality CDMO Complex Hospital Generics India Consumer Healthca
Slide 8: Global Footprint with a Track Record of Compliance, Growth and Profitability
Global Footprint with a Track Record of Compliance, Growth and Profitability Global Footprint 100+ 76% 15 Countries with commercial Revenues from North America, Manufacturing sites (North America, ~5,500 presence Europe and Japan Europe and India) B2B Customers(3) Compliance1 ~250 36 ~1,350 Nil Regu
Slide 9: Proven Track Record of Inorganic and Organic Expansion
Proven Track Record of Inorganic and Organic Expansion Growth capex across Discovery, Development and Commercial Manufacturing within CDMO: — Discovery Services – addition of labs and in vitro capability — Development Services – site expansion — Riverview – HPAPI expansion, additional labs Healthy
Slide 10: Strong Quality Underpinned by Customer and Patient-centric Approach
Strong Quality Underpinned by Customer and Patient-centric Approach Best in Class Quality Track Record… …Driven by a Focus on Customer and Patient Centricity 240+ Regulatory Inspections with no OAI Complex Hospital India Consumer USFDA Inspections CDMO Generics Healthcare Total Regulatory Inspection
Slide 11: Institutional Focus on Sustainability
Institutional Focus on Sustainability Established ESG Framework… …with Significant Impact Environment Environment ~82K 1,780 Trees planted during Tons of CO2e offset EHS initiatives designed to create long FY21 during FY21 term sustainability and value for the Company and its stakeholders ~125K ~1
Slide 12: Strong Financial Performance Across Segments
Strong Financial Performance Across Segments Strong Growth Across Segments… ….with Increasing Profitability Balanced Mix Across Segments (Revenue In INR Crore) (EBITDA in INR Crore) India Consumer 14% CAGR % margin Healthcare 8% CDMO 13% CAGR 7% 15% 22% CHG 16% CAGR CDMO ICH 15% CAGR 67% Complex Hos
Slide 13: Diversified Revenue across Regions, Capabilities & Customer Categories
Diversified Revenue across Regions, Capabilities & Customer Categories FY21 Split of Revenue 22% 4% US Europe 26% 8% 53% Japan Others Commercial manufacturing Development services 17% 70% Discovery services 2% Inhalation anesthesia 21% Injectable anesthesia and pain management 54% Intrathecal spasti
Slide 14: Key Strategic Priorities
Key Strategic Priorities 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Track record of building scalable Capacity expansion across multiple sites differentiated pharma Acquisitions of niche manufa
Slide 15: 1. CDMO
6 Piramal Pharma Limited 1. CDMO
Slide 16: CDMO Market – Large and Growing Addressable Market
CDMO Market – Large and Growing Addressable Market CDMO CHG ICH CDMO Market Growing at a Healthy Pace… …Driven by Sustainable Tailwinds (In USD Bn) CAGR of 7% New Businesses will emerge within Biotech and Mid Pharma 169 115 US and Asia Pacific witnessing higher growth of 7.7–8.5% p.a. over 2021–
Slide 17: Service Offerings Across the Lifecycle of the Molecule
Service Offerings Across the Lifecycle of the Molecule CDMO CHG ICH Discovery Development Commercial Manufacturing India – Digwal, Pithampur, Ennore, Mahad, India – Ahmedabad, Ennore, Digwal, Turbhe Turbhe Facilities North America – Aurora, Lexington, North America – Aurora, Lexington, India – Ahmed
Slide 18: Continuing to expand presence across niche capabilities and integrated offerings
Continuing to expand presence across niche capabilities and integrated offerings CDMO CHG ICH Large part of the revenue sticky in nature Commercial products Discovery Witnessing significant growth in products under patent and phase III molecules Services 4% Commercial CMO & Generic APIs Development
Slide 19: Expertise in Niche, Complex and High-Margin Areas
Expertise in Niche, Complex and High-Margin Areas CDMO CHG ICH Antibody Drug Peptide Complex Oral Solid Potent sterile Highly Potent Dosage Biologics and injectables API (HPAPI) Conjugates APIs formulations Vaccines Minority stake in Yapan Strong expertise in Bio, CDMO providing Ability to han
Slide 20: Adding capabilities in large molecules with investment in Yapan Bio
Adding capabilities in large molecules with investment in Yapan Bio CDMO CHG ICH Expanding further in large molecules Acquired minority stake in Yapan Bio, CDMO providing expertise in biologics and vaccines Added new technologies and capabilities in large molecules, including vaccines and gene the
Slide 21: Diversified Blue-chip Global Customer Base
Diversified Blue-chip Global Customer Base… CDMO CHG ICH Increasing share of Revenue from Big Pharma and Superior Value Proposition to Win and Retain Customers Emerging Bioparma… % of Revenue Big Pharma Emerging Biopharma Others Generics Quality & compliance Reliable & flexible track record service
Slide 22: Attractive Customer Metrics and Increasing Share of Late-Stage Projects
…with Attractive Customer Metrics and Increasing Share of Late-Stage Projects CDMO CHG ICH Increasing Revenue Contribution from Top 20 Clients Long Standing Relationships with Top Clients Revenue of Top 20 clients as of FY21 Share of Revenue from Top 20 clients based on Tenure (INRcr.(1)) 26% CAGR 2
Slide 23: De-risked Manufacturing Footprint
De-risked Manufacturing Footprint CDMO CHG ICH Manufacturing Base across US, Canada, UK and India North America United Kingdom India Ahmedabad1 Grangemouth Pithampur Facilities Aurora Turbhe Morpeth Mahad Riverview Digwal Sellersville Lexington Ennore API development and manufacturing API develo
Slide 24: Track Record of Consistent Above-Market Growth
Track Record of Consistent Above-Market Growth CDMO CHG ICH Revenue Growth 9M FY22 Revenue Performance Revenue Contribution to PPL (In INR Crore) (In INR Crore) 13% CAGR +10% 3,616 2,566 CDMO 9M FY22 2,326 revenue: INR 2,566 Crs 2,329 56% 1,021 Regional Share of Revenue 9M FY21 9M FY22 FY21 CDMO Rev
Slide 25: Clearly Identified Levers of Growth
Clearly Identified Levers of Growth CDMO CHG Consumer ICH HC Increase capacity through operational excellence Capacity Expand major sites through customer-led brownfield expansions across both API and drug product — $130m approved / committed across multiple facilities for brownfield expansion C
Slide 26: To Summarize: CDMO
To Summarize CDMO CHG Consumer ICH HC Presence Across Lifecycle Integrated Platform Quality Service Offerings Across the Integrated Platform across Drug Best-in-Class Lifecycle of the Molecule allowing Substance and Product allows for Quality Track Record Multiple Entry Points with Clients Greater V
Slide 27: 2. Complex Hospital Generics
2. Complex Hospital Generics DRAFT
Slide 28: Broad Portfolio Spanning Inhalation Anesthesia, Pain Management, Intrathecal Therapy and More
Broad Portfolio Spanning Inhalation Anesthesia, Pain Management, Intrathecal Therapy, Generic Injectables and Specialty Products Pre-2016 2016-2021 Injectables Inhalation Anesthesia Product Category Anesthesia Intrathecal Therapy Others and pain management Level of Low Medium Low Varied competition
Slide 29: Differentiated portfolio and strong pipeline of products
Differentiated portfolio and strong pipeline of products Differentiated portfolio spanning inhalation anesthesia and injectable Inhalation Anesthesia Injectable Anesthesia (Sevoflurane, Isoflurane, and pain management No of products in pipeline1 Desflurane, Halothane) (Fentanyl, Sufentanil, Alfentan
Slide 30: Vertically Integrated Manufacturing Capabilities and Well Built Out Commercial Infrastructure
Vertically Integrated Manufacturing Capabilities and Well Built Out Commercial Infrastructure CDMO CHG ICH Key Starting Material Finished Products Distribution Direct Sales Vertically Integrated Manufacturing Capabilities Commercial Presence through a Combination of Own Sales Force and Local Partner
Slide 31: Track Record of High Growth
Track Record of High Growth CDMO CHG ICH Revenue Growth 9M FY22 Revenue Performance Revenue Contribution to PPL (In INR Crore) (In INR Crore) 16% CAGR +25% 1,669 1,454 Complex Hospital Generics 9M FY22 1,162 revenue: 878 INR 1,454 Crs 32% 388 FY11 FY16 FY21 Regional Share of Revenue 9M FY21 9M FY22
Slide 32: Clearly Identified Levers of Growth
Clearly Identified Levers of Growth CDMO CHG ICH Line-extensions within Sevoflurane for select EU markets, increasing market share in US and continued Sevoflurane geographic expansion and Global roll-out of Desflurane and leveraging the strong GPO position for other inhalation anesthesia product
Slide 33: To Summarize: Complex Hospital Generics
To Summarize CDMO CHG ICH Vertical Integration Entry Barriers High Market Share Vertically integrated for Leading Sevoflurane supplier in Well Entrenched in segments with US, UK, South Africa, Brazil and Inhalation Anesthesia Products High Barriers to Entry Mexico Pipeline Customer Relationships Qua
Slide 34: 3. India Consumer Healthcare
3. India Consumer Healthcare DRAFT
Slide 35: Market Leading Brands in Attractive High Growth Segments
Market Leading Brands in Attractive High Growth Segments CDMO CHG ICH Category Analgesics Skin care VMS1 Women’s health Digestives Kids wellness (US$m) Market Size 820 2,000 1,400 450 430 450 Category Growth2 9% 8% 8% 9% 6% 12% i-range Brands3 Core 1st 6th 5th 2nd 5th • 40-year heritage synonymous •
Slide 36: Well Established Commercial Infrastructure with Multi-channel Distribution
Well Established Commercial Infrastructure with Multi-channel Distribution Strategy CDMO CHG ICH With Differentiated Strategy Across Channels Investments to Increase Brand Strength Modern trade & e- Consolidated Media and Trade Spends (INRcr.) Channel Chemist and cosmetics Chemists Kids’ stores Comm
Slide 37: Robust Growth during Covid-19 Led by Strategic Initiatives
Robust Growth during Covid-19 Led by Strategic Initiatives CDMO CHG ICH Strong Growth Demonstrated Against Headwinds Revenue (INR Crore) 671 456 CY 2020 CY 2021 1 Investing in Brand Promotion and Marketing 2 Launched New Products 3 Leveraging E-commerce to Drive Growth No of E-commerce platform 41 6
Slide 38: Launched direct to customer e-commerce website
Launched direct to customer e-commerce website CDMO CHG ICH Piramal’s own e-commerce website, Wellify.in 37
Slide 39: Track Record of High Growth
Track Record of High Growth CDMO CHG ICH Revenue Growth 9M FY22 Revenue Performance Revenue Contribution to PPL (In INR Crore) (In INR Crore) 15% CAGR +45% 12% 545 501 ICH 375 9M FY22 revenue: INR 545 Crs 261 127 FY11 FY16 FY21 Revenue Mix in ICH 9M FY21 9M FY22 9MFY22 ICH Revenue Built reach and
Slide 40: Clearly Identified Levers of Growth
Clearly Identified Levers of Growth CDMO CHG ICH Tech Enablement Strengthen Sales through Tech enablement & Capability Capability building for improvement in market servicing Building High Investment in Growing Powerbrands through media and launches Powerbrands Create awareness and trials us
Slide 41: To Summarize: India Consumer Healthcare
To Summarize CDMO CHG ICH Portfolio Powerbrands Distribution Diversified and Market Leading Accelerated Growth backed by Excellent Commercial Product Portfolio Investments in Powerbrands Infrastructure Execution Analytics and Ecommerce Increased Emphasis on Strong Execution Focus Analytics and E-com
Slide 42: 4. Ophthalmology Branded Products
4. Ophthalmology Branded Products DRAFT
Slide 43: Strategic Ophthalmology JV with a #1 Position in the Domestic Market
Strategic Ophthalmology JV with a #1 Position in the Domestic Market #1 500 in Indian Ophthalmology employees including sales Market force Ownership Ownership Strong 49% 51% presence 33% in major disease segments FY21 PAT Margin Revenue(1) (INR Cr.) Revenue by brand2 10% CAGR 29% Others 365 38% 337
Slide 44: Appendix
6 Piramal Pharma Limited Appendix
Slide 45: Demerger and simplification of the corporate structure
Demerger and simplification of the corporate structure The pharmaceuticals business will get vertically demerged from Piramal To create two separate sector-focused Enterprises Limited (PEL) and consolidated under listed entities Piramal Pharma Limited (PPL) Both entities to have a leadership positio
Slide 46: Key Steps and Outcome (1/2)
Key Steps and Outcome (1/2) Piramal Pharma Limited (PPL) The Pharmaceuticals business will get vertically demerged from PEL and consolidated under PPL PPL will be a large India listed Pharma company, focused on PPL will become one of the largest pharma companies listed on NSE and BSE, Contract Devel
Slide 47: Key Steps and Outcome (2/2)
Key Steps and Outcome (2/2) Piramal Enterprises Limited PHL Fininvest Private Limited, the non-banking financial company (NBFC), will be amalgamated with Piramal Enterprises Limited to create a large listed NBFC in India PEL will be a large diversified listed NBFC, with significant presence across b
Slide 48: PEL Corporate Structure: Pre Demerger
PEL Corporate Structure: Pre Demerger Shareholders Promoters Investor4 56% 44% Piramal Enterprises Limited (Listed on BSE and NSE) 80% 20% Financial Services businesses Piramal Pharma Limited FY21 FS Revenue Contribution: 55% FY21 Pharma Revenue Contribution: 45% 100% 100% 100% 100% 49% 100% PCHFL1
Slide 49: Corporate Structure: Post demerger and simplification
Corporate Structure: Post demerger and simplification of the corporate structure PEL Structure – Post-Demerger PPL Structure – Post-Demerger Shareholders Promoters Shareholders Promoters Investor5 56% 44% 45% 35% 20% Piramal Enterprises Limited Piramal Pharma Limited (NBFC1, listed on BSE and NSE) (
Slide 50: PEL – Revenue Breakdown
PEL – Revenue Breakdown PEL – Revenue by Businesses FY 2021, in INR Crores Financial Services Pharma Financial Services loan book split1 Pharma revenue split 9% CDMO 7,033 36% Wholesale 55% 5,776 29% Complex Hospital Generics Retail 45% 64% 62% India Consumer Healthcare Total loan book: ~INR 60,640
Slide 51: Creating significant value for shareholders
Creating significant value for shareholders Incremental Market cap Dividend Paid Capital Returned through Buyback Capital Raised In INR Crores From ‘entry into Pharma’ to Built Financial Services and Before entry into Pharma Separate focused entities ‘sale to Abbott’ reconstructed Pharma 65,605 >USD
Slide 52: Strategic rationale and timelines
Strategic rationale and timelines Strategic Rationale Progress so far Status / Expected Simplifies the corporate structure: Creates two separate Key Milestones pure-play entities in Financial Services and Pharmaceuticals Timeline Board Approval Strengthens governance architecture: Dedicated Boar
Slide 53: Well-prepared for demerger; in line with our stated strategy
Well-prepared for demerger; in line with our stated strategy Strengthened the Balance Sheet Brought all Pharma businesses under one subsidiary • Raised USD 490m as fresh equity from The Carlyle Group for a 20% • Equity inflows of >INR 18,000 Cr. since Mar-2019 stake in the Pharma business in Oct-202