Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Merger or Acquisition (October 2021)
25 slides from Piramal Pharma's merger presentation, Oct 7, 2021
Slide 1: Demerger and Simplification of Corporate Structure
Piramal Enterprises Limited Demerger and Simplification of Corporate Structure To create two separate listed entities in Financial Services and Pharmaceuticals 7th October 2021
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 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 4: 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 5: 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 6: 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 7: Corporate Structure: Post demerger and simplification of the corporate structure
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 8: PEL – Revenue Breakdown
PEL – Revenue Breakdown PEL – Revenue by Businesses FY 2021, in INR Crores Financial Services Pharma Financial Services loan book split1 Pharma (Post DHFL merger) revenue split 9% CDMO 7,033 Wholesale 55% 5,776 29% Complex Hospital Generics Retail 45% 62% India Consumer Healthcare Total loan book1:
Slide 9: 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
Slide 10: Strategic Rationale
Strategic Rationale Value creation levers Implications for shareholders1 Creates two separate pure-play entities in Financial Services A Simplifies corporate structure and Pharmaceuticals Shareholders of PEL will get 4 shares of ✓ PPL for every one share in PEL, in addition Strengthens governance De
Slide 11: 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 12: 1. Piramal Enterprises Limited
1. Piramal Enterprises Limited Will be a listed diversified NBFC, with presence across retail and wholesale financing
Slide 13: Piramal Enterprises Limited: Company Overview
Piramal Enterprises Limited: Company Overview Piramal Enterprises Limited Retail Wholesale Alternative Investments Life Lending Lending Assets in Shriram Insurance 20% stake Multi-product platform launched in Shriram Capital Loans to residential & CDPQ, APG, in Nov-2020; Partnership with commercial
Slide 14: Organic build-up of the multi-product retail lending platform
Organic build-up of the multi-product retail lending platform Strategic Priorities: Multi-product platform Expanding the product portfolio Retail Lending - Product Portfolio Differentiated products where banks are less interested, Products Products added or less significant V Variants launched 7 Geo
Slide 15: DHFL acquisition: Transforming into a well-diversified lender
DHFL acquisition: Transforming into a well-diversified lender, with significant increase in retail AUM and pan-India presence Significant increase in size and scale post the DHFL merger PEL Financial Services: Loan Book Mix Distribution network post DHFL merger1 In % Wholesale Retail ~5 times Pirama
Slide 16: Building business resilience
Building business resilience Significantly improved provision coverage Increasing granularity of wholesale loan book Strengthening the liabilities side Provisioning as a % of total AUM Weighted average maturity of borrowings, in years, on a residual basis 18,404 5.8% -30% ~4 Incremental provision of
Slide 17: Focusing on sustainable growth and profitability
Focusing on sustainable growth and profitability Strategic roadmap: Progressing on transformation agenda Key growth and ROE drivers (medium-to-long term) Consolidation ✓ Immediate reduction in average cost of borrowings ▪ Improving capital adequacy; deleveraging the ~9.5% (pro forma, post DHFL merge
Slide 18: 2. Piramal Pharma Limited
2. Piramal Pharma Limited Will be a large India listed Pharma company focused on CDMO, Complex Hospital Generics and India Consumer Healthcare
Slide 19: Pharma business with global operations and footprint
Pharma business with global operations and footprint Key Highlights: Piramal Pharma Pharma FY21 Revenue: INR 5,776 Crs1 EBITDA: INR 1,283 Crs; EBITDA Margin: 22% Complex Hospital India Consumer JV with CDMO Generics Healthcare Allergan 14% Revenue 10 76% 100+ year CAGR1,2 Revenue from countries with
Slide 20: Targeting attractive, large, and growing markets with high entry barriers
Targeting attractive, large, and growing markets with high entry barriers Pharma CDMO Complex Hospital Generics (CHG) India Consumer Healthcare (ICH) End-to-end Integrated model with niche capabilities Differentiated product portfolio with global distribution Strong brands with India-wide distributi
Slide 21: Diversified presence across regions, capabilities & customer categories
Diversified presence across regions, capabilities & customer categories Revenue by segment 2% Revenue by services 21% 54% Inhalation anesthesia 4% Commercial Injectable anesthesia and 26% manufacturing pain management Intrathecal spasticity Development 22% services Other products 70% Discovery Reven
Slide 22: Consistent long-term track-record of revenue growth
Consistent long-term track-record of revenue growth (In INR Crs) Consolidated revenue and EBITDA margin Revenue EBITDA Margin (%) Sold Domestic Formulations business to Abbott 5,776 5,419 4,322 4,786 3,624 3,467 3,893 2,715 3,008 1,906 2,339 1,537 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY
Slide 23: Capital Raise and Growth & Profitability Levers
Capital Raise and Growth & Profitability Levers Capital raise and balance sheet strengthening (In INR Crs) Growth & Profitability Levers USD 490m raised as fresh equity for a 20% stake in the Pharma business Balance Sheet Strengthening post fund raise 1 Delivering consistent revenue growth and impro
Slide 24: Dial-in details for the Investor Call
Dial-in details for the Investor Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) India – 6:00 PM IST 1800 120 1221 (Toll free number) USA – 8:30 AM Toll free number (Eastern Time – New York) 18667462133 Conference call on 7th October, 2021 UK – 1:30 P
Slide 25: For Investors
For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Mayank Kumar Investor Relations – Financial Services Investor Relations - Pharma Email : investor.relations@piramal.com Email : investor.relations@piramal.com Pho
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