Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — Q2 FY2022 Earnings Presentation
54 slides from Piramal Pharma's earnings presentation, Nov 11, 2021
Slide 1: Q2 & H1 FY2022 Results
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Piramal Enterprises Limited Q2 & H1 FY2022 Results November 11th, 2021
Slide 2: Key Highlights
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 2 Key Highlights Demerger of Pharma and Completed the Acquisition H1 FY22 Performance Simplification of Corporate Structure and Merger of DHFL ■ Approved by the Board in Oct-2021 ■ Completed the acquisition of DHFL and its ■ Deli
Slide 3: Revenues and Net Profit
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 3 Revenues and Net Profit (In INR Crores) Total Revenues Net Profit1 6,239 1,084 1,090 6,014 • H1 FY22 performance does not include DHFL’s financials • Revenue decline amid fall in FS revenues due to reduction in the wholesale lo
Slide 4: Demerger and Simplification of Corporate Structure
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 4 Demerger and Simplification of Corporate Structure
Slide 5: Demerger and Simplification of Corporate Structure – Key Announcements
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 5 Demerger and Simplification of Corporate Structure – Key Announcements Piramal Pharma Limited (PPL) Piramal Enterprises Limited (PEL) ■ The Pharmaceuticals business will get vertically demerged from ■ PHL Fininvest Pvt. Ltd., t
Slide 6: PEL Corporate Structure: Pre-Demerger
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 6 PEL Corporate Structure: Pre-Demerger Shareholders Promoters Investor3 56% 44% Piramal Enterprises Limited (Listed on BSE and NSE) 80% 20% Financial Services businesses Piramal Pharma Limited FY21 FS Revenue Contribution: 55% F
Slide 7: Corporate Structure: Post demerger and simplification
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 7 Corporate Structure: Post demerger and simplification of the corporate structure PEL Structure – Post-Demerger PPL Structure – Post-Demerger Shareholders Promoters Shareholders Promoters Investor4 56% 44% 45% 35% 20% Piramal En
Slide 8: Strategic Rationale
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 8 Strategic Rationale Value creation levers Implications for shareholders1 Creates two separate pure-play entities in Financial A Simplifies corporate structure Shareholders of PEL will get 4 shares of Services and Pharmaceutical
Slide 9: PEL Balance Sheet
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 9 PEL Balance Sheet As of 30th Sep 2021 Current Post Demerger (pro-forma) PEL PEL (NBFC) PPL Total Assets INR 1,02,149 Cr. INR 90,062 Cr. INR 12,087 Cr. Net Debt INR 46,838 Cr. INR 43,644 Cr. INR 3,194 Cr. Total Equity1 INR 35,89
Slide 10: Financial Services
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 10 Financial Services
Slide 11: Financial Services Transformation: Significant progress in Q2 FY22
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 11 Financial Services Transformation: Significant progress in Q2 FY22 Consolidation ‐ Raised capital and improved capital adequacy Completed the DHFL acquisition; Phase I ‐ Deleveraged the business integration underway (FY2019-21
Slide 12: Financial Services: Building a dominant position in select segments
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 12 Financial Services: Building a dominant position in select segments Dominant position in Dominant position in Building dominant position in Real Estate Developer affordable housing underserved SME segment financing
Slide 13: DHFL Acquisition
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 13 DHFL Acquisition
Slide 14: Completed the DHFL acquisition during the quarter
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 14 Completed the DHFL acquisition during the quarter Key Milestones Transaction Highlights Nov-2021: Merged entity renamed as ‘PCHFL’ 1st financial services company resolved through the IBC route Oct-2021: Appointment of MD Sep-2
Slide 15: Breakdown of Consideration Paid for the DHFL acquisition
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 15 Transaction Overview: Breakdown of Consideration Paid for the DHFL acquisition Breakdown of Consideration Paid Particulars Amount (INR Cr.) As of 30th Sep-2021 Total Consideration Paid 34,250 Less: Cash / SLR Bonds on DHFL’s B
Slide 16: Gross value vs. Acquisition Value of DHFL’s Assets
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 16 Transaction Overview: Gross value vs. Acquisition Value of DHFL’s Assets Breakdown of DHFL’s Assets DHFL’s AUM fair valued at INR 20,277 Cr. Particulars (i.e. post markdowns and provisioning) Gross Value Value at which assets
Slide 17: AUM: Growth and diversification through the DHFL acquisition
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 17 AUM: Growth and diversification through the DHFL acquisition PEL Financial Services: Overall AUM PEL Financial Services: AUM Mix In INR Cr. DHFL AUM In % Wholesale Retail 66,986 +42% 20,277 67% 89% 47,181 46,709 33% 11% Jun-20
Slide 18: Growth and Geographic Presence in retail lending
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 18 Growth and Geographic Presence: Significant increase in size & scale of retail lending post the DHFL acquisition Financial Services: Retail Loan Book Distribution network post-merger1 In INR Cr. Piramal branch DHFL branch 22,2
Slide 19: Scale: Pan-India presence and ~1 million customers
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 19 Scale: Creates a platform with pan-India presence and ~1 million customers No. of branches No. of customers1 ~1 million 301 43x 22x 14 23,286 Pre-merger Post-merger Pre-merger Post-merger Presence in no. of states / UTs2 Prese
Slide 20: Asset quality: Decline in NPA ratios post the DHFL merger
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 20 Asset quality: Decline in NPA ratios post the DHFL merger Gross NPA Ratio (as a % of AUM) Net NPA Ratio (as a % of AUM) Total provisions In % In % INR Cr. 4.1% 2,797 2,683 2.9% 2.1% 1.5% Mar-2021 Sep-2021 Mar-2021 Sep-2021 Mar
Slide 21: Retail Loan Book Breakdown
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 21 Retail Loan Book Breakdown: A granular and diversified retail loan portfolio Breakdown of the retail loan book – Post-merger By product category By customer segment By ticket size2 SBL Others SME 1% 0.2% Self- INR 1 - 2.5m 9%
Slide 22: Customer Segment: Strengthening our presence in the affordable segment
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 22 Customer Segment: Strengthening our presence in the affordable segment Small business owner Small business owner ‘Kirana store’ owner Tailoring business in Bahadurgarh, Haryana in Meerut, Uttar Pradesh ■ Required working capit
Slide 23: Borrowings: Diversifying the borrowing mix
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 23 Borrowings: Diversifying the borrowing mix As on Sep 30, 2021 Breakdown of borrowing mix by type of instruments 4% 6% ▪ Increase in share of NCDs / Bonds in borrowing Others 5% 1% 6% mix post the DHFL acquisition NCDs /Issue P
Slide 24: Further improvement in the maturity profile of our borrowings
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 24 Further improvement in the maturity profile of our borrowings Weighted average maturity of borrowings In years, on a residual basis 3.7 DHFL acquisition funded by low-cost, long-term borrowings Funding of INR 19,550 Cr. though
Slide 25: Capital efficiency: Improved utilization of equity in FS business
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 25 Capital efficiency: Improved utilization of equity in FS business Pre-merger Post-merger (Jun-2021) (Sep-2021) Equity (Financial Services) INR 18,378 Cr. No additional INR 17,857 Cr.1 ➔ capital allocation AUM INR 47,181 Cr. IN
Slide 26: Organic Retail Lending
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 26 Organic Retail Lending
Slide 27: Expanding the product portfolio
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 27 Expanding the product portfolio Retail Lending - Product Portfolio New Additions 9 P Partnerships2 Unsecured Business Loans P D 7 Live Partnerships D Direct Sales Merchant BNPL3 P Pre-owned Car Loans P D Products Digital Purch
Slide 28: Retail Lending – Operating Performance
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 28 Retail Lending – Operating Performance Retail loans – Monthly disbursements1 New business vs. overall book yields1 Under the new retail lending strategy, in INR Cr. Retail Loan book; % p.a. Fresh Disbursement Yield Covid-19 Ov
Slide 29: Wholesale Lending
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 29 Wholesale Lending
Slide 30: Residential Real Estate: Q2 FY22 industry-wide sales recover
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 30 Residential Real Estate: Q2 FY22 industry-wide sales recover to Q3 FY21 levels Overall Residential RE Industry: Housing units sold across top-8 cities Covid-19 Covid-19 71,963 1st wave 2nd wave 64,010 Q2 FY22 Sales breakdown:
Slide 31: PEL’s Developer Clients
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 31 PEL’s Developer Clients Performance of our developer clients in Q2 FY22 YoY growth in sales across all categories – affordable, mid-market and luxury projects Developer Sales 1.6x times YoY (by value) Developer collections fro
Slide 32: FS Performance metrics
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 32 FS Performance metrics
Slide 33: Financial Services: Balance Sheet Metrics
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 33 Financial Services: Balance Sheet Metrics Q1 FY22 Q2 FY22 QoQ Particulars (pre-merger) (post-merger) Change Total AUM1 47,181 66,986 +42% • Significant increase in loan book and AUM post Total Loan Book 42,754 62,215 +46% the
Slide 34: Financial Services: P&L Performance Ratios
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 34 Financial Services: P&L Performance Ratios Q2 FY22 Particulars1 Q1 FY22 (excl. DHFL) Average Yield on Loans 13.4% 13.6% • Average yields declined marginally QoQ amidst reduction in the wholesale book – Average Cost of Borrowin
Slide 35: Liabilities
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 35 Liabilities
Slide 36: Borrowing mix – Financial Services
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 36 Borrowing mix – Financial Services As on Sep 30, 2021 Breakdown of borrowing mix by type of instruments Breakdown of borrowing mix by type of investors 1% 1% NCDs / Bonds Banks 0.2% 0.4% 5% 8% Loans 10% FIIs / FPIs 5% CP Insur
Slide 37: Pharma
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 37 Pharma
Slide 38: Strong Revenue Growth during H1 FY22
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 38 Strong Revenue Growth during H1 FY22 Long term performance track record Q2 and H1 FY22 performance Annual Revenue1,2 EBITDA Margin (In INR Crore) +20% 7% 7% 11% 14% 14% 15% 17% 18% 21% 26% 22% 2,983 5,776 5,419 2,479 10-year R
Slide 39: CDMO: Delivering in line with long term performance track record
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 39 CDMO: Delivering in line with long term performance track record Long term revenue performance Q2 and H1 FY22 performance 10-year Revenue CAGR of 13% (In INR Crore) +11% Market position: Among top 3 in India and 3,616 1,644 13
Slide 40: Comprehensive range of services lead to healthy growth in order book
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 40 Comprehensive range of services lead to healthy growth in order book Breakdown of development revenue by phase (FY21) # of molecules by phases Pre-clinical 165 Phase III 19% 34 35 Phase III molecules 30% as on Sep’21 48 82 Pha
Slide 41: Complex Hospital Generics: Strong recovery during H1 FY22
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 41 Complex Hospital Generics: Strong recovery during H1 FY22 Long term revenue performance Q2 and H1 FY22 performance 10-year Revenue CAGR of 16% (In INR Crore) +26% Market position: 4th largest inhaled 1,853 anesthesia player gl
Slide 42: Robust performance in the India Consumer Healthcare Business
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 42 Robust performance in the India Consumer Healthcare Business Long-term revenue performance Q2 and H1 FY22 performance 10-year Revenue CAGR of 15% +54% (In INR Crore) Market position: #11 rank in OTC segment 501 377 in India 41
Slide 43: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 43 Key strategic priorities: Pharma
Slide 44: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 44 Key strategic priorities: Pharma 1 Delivering consistent revenue growth and improving profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Track record of building scalable ✓ Capacity ex
Slide 45: Financials – PEL Overall
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 45 Financials – PEL Overall
Slide 46: Diversified Revenue Mix
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 46 Diversified Revenue Mix (In INR Crores, or as stated) Quarter II ended % Sales Half year ended % Sales for Net Sales break-up for Q2 30-Sept-21 30-Sept-20 % Change 30-Sept-21 30-Sept-20 % Change H1 FY2022 FY2022 Financial Serv
Slide 47: Consolidated Profit & Loss
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 47 Consolidated Profit & Loss (In INR Crores, or as stated) Quarter II ended Half year Ended Particulars 30-Sept-21 30-Sept-20 % Change 30-Sept-21 30-Sept-20 % Change Net Sales 3,106 3,302 -6% 6,014 6,239 -4% Non-operating other
Slide 48: Consolidated Balance Sheet
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 48 Consolidated Balance Sheet (In INR Crores) Particulars As on September 30th, 2021 As on March 31st, 2021 Equity Share Capital 48 45 Other Equity 34,714 33,973 Non Controlling Interests 1,128 1,121 Borrowings (Current & Non Cur
Slide 49: Appendix
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 49 Appendix
Slide 50: DHFL post-merger integration: Key focus areas
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 50 DHFL post-merger integration: Key focus areas Branch and People Credit Policies Collections Technology Branding business network and and and Integration and and reactivation Culture Products recoveries Analytics Communication
Slide 51: Financial Services: Stage-wise provisioning
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 51 Financial Services: Stage-wise provisioning Pre-merger Post-merger Particulars (in INR Cr., unless otherwise stated) As on Sep-2020 As on Jun-2021 As on Sep-2021 Gross Stage 1 & 2 Assets 50,243 45,152 65,035 Provision - Stage
Slide 52: Pharma: Investing across Businesses
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 52 Pharma: Investing across Businesses Organic investments (in INR Crs) CDMO: Announced investment of $35 CDMO: $22 Mn capacity expansion India Consumer Healthcare: Investing in brand promotion and marketing Mn in Riverview facil
Slide 53: Dial-in details for Q2 & H1 FY2022 Earnings Conference Call
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 53 Dial-in details for Q2 & H1 FY2022 Earnings Conference 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 – 7:30 AM Toll fr
Slide 54: For Investors
Piramal Enterprises Limited – Q2 & H1 FY2022 Results Presentation Page 54 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 :
Piramal Enterprises — Q2 FY2022 Earnings Presentation on 6ix