Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q4 FY2021 Earnings Presentation
55 slides from Piramal Pharma's earnings presentation, May 13, 2021
Slide 1: Q4 & FY2021 Results Presentation
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Piramal Enterprises Limited Q4 & FY2021 Results May 13th, 2021
Slide 2: Key Highlights
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 2 Key Highlights PEL Consolidated Financial Services Pharma 29% increase in Equity INR Capital Adequacy CDMO 37% +23% over last 2 years to 35,139 Cr2 Ratio Q4 FY21 YoY Revenue growth 45% reduction in Net Debt RBI and CCI approvals I
Slide 3: Revenues and Net Profit
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 3 Revenues and Net Profit (In INR Crores) Total Revenues1,2 Net Profit3 13,068 12,809 6-year CAGR: +21% 6-year CAGR: +36% 11,883 2,615 2,627 9,430 1,936 7,325 1,551 5,225 1,252 4,103 905 421 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 F
Slide 4: Balance Sheet Highlights
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 4 Balance Sheet Highlights Net Debt-to-Equity (x) Equity1 Net Debt In INR Crores In INR Crores 2.0x 1.8x 1.2x 1.2x 0.9x +29% 35,139 55,122 31,475 30,572 48,963 -45% 27,224 26,655 37,283 36,721 30,154 Mar-19 Sep-19 Mar-20 Sep-20 Mar-
Slide 5: Long-term borrowings and capital inflows
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 5 Long-term borrowings and capital inflows Gross inflows over the last 2 years Amount (in INR Cr.)2 A Long-term borrowings1 33,478 B Equity & other inflows 18,173 o/w: Stake sale in STFC 2,300 o/w: Rights Issue 3,650 o/w: Preferenti
Slide 6: Equity allocation
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 6 Equity allocation (In INR Crores) percentages may not add up to Overall Equity 100% due to rounding-off As of Mar 31, 2021 Financial Services (Lending): 51% Pharma 1: 17% Capital Adequacy Ratio of 37%. In addition, provisions of I
Slide 7: Capital Returned to Shareholders
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 7 (In INR Crores) Capital Returned to Shareholders INR 7,335 Crores6 returned to shareholders since sale of Strong medium and long-term performance Domestic Formulations business in 2010 Normal dividend Special dividend Buyback5 Las
Slide 8: Financial Services
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 8 Financial Services
Slide 9: Executing on five major transformations in Financial Services
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 9 Executing on five major transformations in Financial Services From Mar-2019 To Mar-2021 Transformation #1 Wholesale-led business model Well-diversified FS business Wholesale-Retail mix 91:9 50:50 (expected post-DHFL acquisition) T
Slide 10: Financial Services – Retail Lending
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 10 Financial Services – Retail Lending
Slide 11: Organic retail lending build-up – Pivoting to a multi-product strategy
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 11 Organic retail lending build-up – Pivoting to a multi-product strategy Strategic Focus Progress in FY21 Growth plans for FY22 Products where banks are less Increased product suite from Products 2 to 7 products To add 4 more produ
Slide 12: Retail Lending – Expanding the product portfolio
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 12 Retail Lending – Expanding the product portfolio Retail Lending - Product Portfolio (based on fresh disbursements) 7 Used Car Loans 2 P Added during the period 6 Products added P Partnerships Digital Purchase Finance 2 P Digital
Slide 13: Multi-product Retail Lending – Operating performance
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 13 Multi-product Retail Lending – Operating performance Monthly Disbursements since launch New business vs. overall book yields Average ticket size by products Under the new retail lending strategy Retail Loan book; % p.a. As of Mar
Slide 14: DHFL Acquisition
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 14 DHFL Acquisition
Slide 15: DHFL acquisition – In line with our strategy to diversify the loan book
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 15 DHFL acquisition – In line with our strategy to diversify the loan book and increase its granularity Breakdown of the deal consideration Acquisition of DHFL fits well into our overall Retail strategy ■ Creates one of the largest
Slide 16: DHFL acquisition process
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 16 DHFL acquisition process Key Milestones Status / Remarks Date Approval of Resolution Plan by Committee of Creditors (COC) Jan-2021 Issuance of Letter of Intent (LoI) Jan-2021 Approval of Resolution Plan by RBI Feb-2021 Appr
Slide 17: Financial Services – Wholesale Lending
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 17 Financial Services – Wholesale Lending
Slide 18: PEL's Developer Clients – Recent performance
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 18 PEL’s Developer Clients – Recent performance Performance of our developer clients in Q4 FY21 Early trends witnessed in Q1 FY22 With learnings from COVID 1st wave, developers now have healthy sales pipeline and competencies to dig
Slide 19: Residential RE sector: Improvement in sales witnessed in H2 FY21
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 19 Residential RE sector: Improvement in sales witnessed in H2 FY21 No. of housing units sold (last 5 quarters) Jan-Mar'20 Apr-Jun'20 Jul-Sep'20 Oct-Dec'20 Jan-Mar'21 Overall Residential RE Industry YoY change in Jan-Mar’21 49% 75%
Slide 20: Making the loan book more diversified and granular
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 20 Progressing in line with our strategy to make the loan book more diversified and granular (in INR Crores, unless otherwise stated) Wholesale Loan Book Top-10 exposures Single-borrower exposures No. of accounts >15% of net worth -
Slide 21: Asset Quality
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 21 Asset Quality
Slide 22: Maintaining adequate provisions to manage any contingences
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 22 Maintaining adequate provisions to manage any contingences Total Provisions Provisioning: In INR Crores ■ At the onset of the COVID crisis, adopted a Incremental provision of conservative & prudent approach to provisioning 2,963
Slide 23: Capital adequacy, leverage and ALM
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 23 Capital adequacy, leverage and ALM
Slide 24: Capital Adequacy and Leverage
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 24 Capital Adequacy and Leverage Capital Adequacy Ratio (%)1 Net Debt-to-Equity 37% 3.9x 34% 31% 27% 2.8x 22% 2.3x 2.1x 1.8x Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Financial Services has sufficient gro
Slide 25: Asset-liability profile
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 25 Asset-liability profile (in INR crores) As on Mar 31, 20211 81,217 Cumulative Inflows 64,202 63,979 Cumulative Outflows 45,865 41,628 32,139 18,349 12,911 13,717 8,990 9,177 10,045 7,069 6,150 3,907 294 1,036 1,895 up to 14d up t
Slide 26: Borrowing mix
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 26 Borrowing mix As on Mar 31, 2021 Breakdown of borrowing mix by type of instruments Breakdown of borrowing mix by type of investors 1% 1% 1% 1% 5% 5% Loans Banks 1% 1% 5% NCDs / Bonds FIIs / FPIs 7% ECB Insurance 45% CP 17% MFs 46
Slide 27: Performance metrics
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 27 Performance metrics Key Performance Indicators: PEL Financial Services Particulars FY 2021 Total Assets1 INR 56,848 Cr. Total Loan Book size INR 44,668 Cr. Total Equity INR 18,073 Cr. Net Debt-to-Equity 1.8x Average Yield on Loan
Slide 28: Financial Services: Executing on our strategic priorities
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 28 Financial Services: Executing on our strategic priorities 1 Transforming into a well-diversified business, across wholesale and retail lending, through organic & inorganic initiatives 2 Organic build-up of the multi-product Retai
Slide 29: Pharma
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 29 Pharma
Slide 30: Resilient Revenue Performance in Pharma
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 30 Resilient Revenue Performance in Pharma Revenue and EBITDA Track Record ■ Consistent growth: PEL’s annual Pharma revenue grew at a Full Year Revenue1,2 EBITDA Margin (In INR Crore) CAGR of 14% over last 10 years 7% 7% 11% 14% 14%
Slide 31: Diversified revenue across regions, capabilities & customer categories
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 31 Diversified revenue1 across regions, capabilities & customer categories Revenue by segment Revenue by services 2% 21% 54% Inhalation anesthesia 4% Commercial manufacturing Injectable anesthesia and 26% pain management Development
Slide 32: Integrated business model in CDMO segment drives consistent growth
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 32 Integrated business model in CDMO segment drives consistent growth CDMO Full Year Revenue Performance CDMO Quarterly Revenue Performance 10-year Revenue CAGR of 13% (In INR Crore) +23% Market position: 13th largest CDMO globally
Slide 33: Comprehensive range of services lead to healthy growth in order book
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 33 Comprehensive range of services lead to healthy growth in order book Capabilities across sites enabling to provide integrated offerings Excellent track record in progressing molecules through the lifecycle Development Late stage
Slide 34: Differentiated product portfolio of Complex Hospital Generics
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 34 Differentiated product portfolio of Complex Hospital Generics Complex Hospital Generics Full Year Revenue Performance Complex Hospital Generics Quarterly Revenue Performance 10-year Revenue CAGR of 16% (In INR Crore) +1% Market p
Slide 35: Large market with limited competition and Covid volatility
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 35 Large market with limited competition and Covid volatility Complex Hospital Generics: Market Size Injectables Inhalation Anti- Blood- Other hospital Anesthesia Pain management Cardiovascular Nutritionals anesthesia infective rela
Slide 36: Strong performance in the India Consumer Healthcare Business
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 36 Strong performance in the India Consumer Healthcare Business India Consumer Healthcare Full Year Revenue Performance India Consumer Healthcare Quarterly Revenue Performance 10-year Revenue CAGR of 15% +55% (In INR Crore) Market p
Slide 37: India Consumer Healthcare: Launched new products and focus on E-commerce
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 37 India Consumer Healthcare: Launched new products and focus on E-commerce Products launched including COVID-19 related Leveraging E-commerce to drive growth New products launch through E-Commerce Advanced analytics to improve
Slide 38: Capital Raise and Balance Sheet Strengthening
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 38 Capital Raise and Balance Sheet Strengthening
Slide 39: Capital Raise and Balance Sheet Strengthening
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 39 Capital Raise and Balance Sheet Strengthening One of the largest PE deals in the Indian pharma sector with The Carlyle Group Balance Sheet Strengthening (in INR Crs) Net Debt (Pharma) Net Debt-to-EBITDA (Pharma) USD 490m Affirmat
Slide 40: Key investment initiatives during the year
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 40 Key investment initiatives during the year
Slide 41: CDMO: Investing in both organic and inorganic growth initiatives (cont'd)
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 41 CDMO: Investing in both organic and inorganic growth initiatives (cont’d) Piramal Pharma Ltd. (PPL) announced the acquisition of 100% stake in Hemmo Pharmaceuticals PPL announced Hemmo acquisition for INR 775 Crores and earn-outs
Slide 42: CDMO: Investing in both organic and inorganic growth initiatives
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 42 CDMO: Investing in both organic and inorganic growth initiatives Acquired Solid Oral Dosage facility in Sellersville from G&W Laboratories • Addresses a market need for solid oral dosage form manufacturing in the US • The site fe
Slide 43: Complex Hospital Generics: Invested for raw material integration
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 43 Complex Hospital Generics: Invested for raw material integration Completed acquisition of Navin Fluorine’s 49% remaining stake in Convergence Chemicals Dahej facility • Convergence Chemicals develops and manufactures specialty fl
Slide 44: India Consumer Healthcare: Investing in Brand Promotion and Marketing
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 44 India Consumer Healthcare: Investing in Brand Promotion and Marketing Invested in brand building through brand ambassadors for key products Kajal Aggarwal for “Lacto Calamine”, Manoj Bajpayee for ‘Tetmosol’, the Sourav Ganguly fo
Slide 45: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 45 Key strategic priorities: Pharma
Slide 46: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 46 Key strategic priorities: Pharma 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Capacity expansion across multiple sites Acqui
Slide 47: Financials
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 47 Financials
Slide 48: Diversified Revenue Mix
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 48 Diversified Revenue Mix (In INR Crores or as stated) Quarter IV ended % Sales for 12M ended % Sales for Net Sales break-up 31-Mar-21 31-Mar-20 % Change Q4 FY2021 31-Mar-21 31-Mar-20 % Change FY2021 Financial Services 1,478 1,718
Slide 49: Consolidated Profit & Loss
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 49 Consolidated Profit & Loss (In INR Crores or as stated) Quarter IV ended 12M ended Particulars 31-Mar-21 31-Mar-20 % Change 31-Mar-21 31-Mar-20 % Change Net Sales 3,402 3,341 2% 12,809 13,068 -2% Non-operating other income 164 24
Slide 50: Consolidated Balance Sheet
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 50 Consolidated Balance Sheet (In INR Crores) Particulars As on March 31st, 2021 As on March 31st, 2020 Equity Share Capital 45 45 Other Equity 33,973 30,526 Non Controlling Interests 1,121 - Borrowings (Current & Non Current) 39,36
Slide 51: Appendix
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 51 Appendix
Slide 52: Stage-wise provisioning
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 52 Stage-wise provisioning Particulars (in INR Cr., unless otherwise stated) As on Mar-2020 As on Dec-2020 As on Mar-2021 Gross Stage 1 & 2 Loans 49,761 44,663 42,650 Provision - Stage 1 & 2 loans 2,479 2,028 1,766 Provision Coverag
Slide 53: Best-in-class quality track record
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 53 Best-in-class quality track record 200+ Regulatory Inspections with no OAI ~150 audits annually by customers USFDA Inspections 44 Customer Audits 167 163 157 Total Regulatory Inspections 140 141 29 29 116 115 26 27 99 25 17 71 14
Slide 54: Dial-in details for Q4 & FY2021 Earnings Conference Call
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 54 Dial-in details for Q4 & FY2021 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) India – 6:30 PM IST 1800 120 1221 / 1800 266 1221 (Toll free number) USA – 9:00
Slide 55: For Investors
Piramal Enterprises Limited – Q4 & FY2021 Results Presentation Page 55 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Mayank Kumar Chief Manager – IR (Financial Services) Chief Manager – IR (Pharma) Email : in
Piramal Enterprises — Q4 FY2021 Earnings Presentation on 6ix