Piramal Pharma Limited · NSE:PPLPHARMA
Piramal Pharma — Piramal Enterprises — H1 FY2021 Earnings Presentation
39 slides from Piramal Pharma's earnings presentation, Oct 28, 2020
Slide 1: Piramal Enterprises Limited Q2 & H1 FY2021 Results
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Piramal Enterprises Limited Q2 & H1 FY2021 Results 28 October 2020
Slide 2: Key Highlights
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 2 Key Highlights PEL Consolidated Financial Services Pharma USD 28% increase in Equity2 INR Closed Pharma deal; Capital Adequacy Ratio 34% 2.7 - 3.1 vs. Mar-19 to 34,739 Cr. Business valued at an EV of billion 39% reduction in Ne
Slide 3: Revenues and Net Profits
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 3 Revenues and Net Profits (In INR Crores) Total Revenues1,2 Net Profit3 6,457 6-year CAGR: 21% 6,239 6-year CAGR: 50% 1,124 5,477 1,000 863 4,283 686 3,210 537 2,381 405 1,977 97 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 H1FY21
Slide 4: Balance Sheet Highlights
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 4 Balance Sheet Highlights Overall Equity (INR Cr.) Net Debt (INR Cr.) Net Debt-to-Equity 2.0x 1.9x 1.8x 1.6x 1.2x 1.2x 1.2x 0.96x 34,739 55,122 52,055 48,963 30,572 31,018 31,475 46,066 29,013 27,224 26,856 26,655 37,283 38,153
Slide 5: Segment-wise equity allocation
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 5 Segment-wise equity allocation (In INR Crores) Overall Equity (Post-Pharma deal in Oct-2020)1 Pharma: 22%1 Financial Services (Lending): 48% Built a differentiated business, valued at an EV of 237% Provision Coverage Ratio, wit
Slide 6: Borrowings and capital inflows
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 6 Borrowings and capital inflows Inflows1 since the beginning of FY20 Reduction in short-term borrowings ■ Inflows of INR 42,800 Cr. since the beginning of FY20, through ■ Significant reduction in Commercial Papers (CPs) exposure
Slide 7: Financial Services
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 7 Financial Services
Slide 8: Loan Book and Total Income
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 8 Loan Book and Total Income Loan book 1 Income from Financial Services (in INR Crores) (in INR Crores) 8-year CAGR: 68% 8-year CAGR: 49% 52,793 53,055 51,522 3,968 3,760 3,290 33,261 2,270 19,640 1,450 9,020 731 345 455 2,650 3,
Slide 9: Wholesale Lending
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 9 Wholesale Lending
Slide 10: Residential RE industry trends: Recovery in performance during Q2
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 10 Residential RE industry trends: Recovery in performance during Q2 No. of housing units sold (industry-wide) Jan-Mar’20 Apr-Jun’20 Jul-Sep’20 Q2 FY21 sales as a % of Q4 FY20 sales Hyderabad 42% 49,905 33,403 15,959 6,147 Mumbai
Slide 11: Significant consolidation taking place in the real estate sector
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 11 Significant consolidation taking place in the real estate sector Industry-wide decline in the number of developers since 20121 -28% -47% -45% -54% -52% -53% -58% -58% -65% -78% Chennai Bengaluru Gurugram Thane Mumbai Noida Hyd
Slide 12: Performance of PEL's Developer Clients
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 12 Performance of PEL’s Developer Clients Performance of our developer clients in Sep-20 Factors driving residential real estate sales ■ Sales of developers back to 100% of pre-COVID Changing customer preferences and need for l
Slide 13: Increasing granularity of the loan book
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 13 Increasing granularity of the loan book (in INR Crores, unless otherwise stated) Wholesale Loan Book Top-10 exposures Single-borrower exposures No. of accounts >15% of net worth -11% -20% 3 51,436 45,840 18,404 14,717 1 Mar-19
Slide 14: Retail Lending
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 14 Retail Lending
Slide 15: Retail Lending strategy
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 15 Retail Lending strategy A Product Strategy B Geography Selection C Partnerships ■ Pivot from ‘Affluent Housing’ to ‘Mass ■ ‘Bharat’– Tier 2/3 locations in small & mid- ■ Strategic partnerships for customer access Affluent’ & ‘
Slide 16: Taking a differentiated approach to Retail Lending
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 16 Taking a differentiated approach to Retail Lending From Product Profitability To Risk Optimized Profitability for Post-COVID World From From From From Vanilla Product Suite Logistical Regression On-premises Mass Market models
Slide 17: Retail Lending: Progress and key milestones
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 17 Retail Lending: Progress and key milestones ■ On-boarded senior management and new talent (for credit, technology, BIU and collections) ■ 4 product categories and 7 variants (Affordable, Mass Affluent Housing, Secured Business
Slide 18: Asset Quality
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 18 Asset Quality
Slide 19: Conservative provisioning to mitigate any contingencies from COVID-19
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 19 Conservative provisioning to mitigate any contingencies from COVID-19, etc. Total Provisions In INR Crores Overall provisioning: Provision of INR 1,903 Cr. 3,037 created in Q4 FY20 in 495 ■ Total provisions of INR 3,037 Cr., r
Slide 20: Liabilities
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 20 Liabilities
Slide 21: Borrowing mix
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 21 Borrowing mix As on Sep 30, 2020 Breakdown of borrowing mix by type of instrument Breakdown of borrowing mix by type of investor 1% Loans Banks 1% 4% 1% 7% 6% 4% 1% NCDs / Bonds FIIs / FPIs 5% ECB Insurance 7% 48% CP MFs 57% 3
Slide 22: Asset-liability profile
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 22 Asset-liability profile (in INR crores) As on Sep 30, 20201,2 81,574 Cumulative Inflows 65,059 Cumulative Outflows 47,455 45,266 39,228 34,283 20,400 12,212 15,285 5,784 6,062 3,504 8,395 6,809 9,120 4,070 1,177 1,851 up to 14
Slide 23: Capital Adequacy and Leverage
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 23 Capital Adequacy and Leverage Capital Adequacy Ratio (%)1,2 Net Debt-to-Equity 2 34% 4.4x 33% 31% 29% 3.9x 27% 3.7x 22% 22% 23% 2.8x 2.5x 2.3x 2.2x 2.1x Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-18 Mar-19 Jun
Slide 24: Performance metrics
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 24 Performance metrics Key Performance Indicators: PEL Financial Services Particulars H1 FY2021 Total Loan Book size INR 51,522 Cr. Total Equity on Lending (utilized synergies from reverse merger) INR 16,775 Cr. Net Debt INR 34,6
Slide 25: Financial Services: Key strategic priorities
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 25 Financial Services: Key strategic priorities 1 Increasing granularity of the loan book 2 Taking proactive corrective actions to mitigate potential risks 3 Building a digitally-led, multi-product retail lending platform 4 Focus
Slide 26: Pharma
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 26 Pharma
Slide 27: Pharma Equity Capital Raise
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 27 Pharma Equity Capital Raise Closed one of the largest PE deals in the Indian pharma sector with The Carlyle Group USD 490m raised as fresh equity for a 20% stake in the Pharma business, valuing it at an EV of USD 2,775m. In ad
Slide 28: Resilient revenue performance
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 28 Resilient revenue performance Consistent Revenue growth ■ Delivered revenue of INR 1,441 Cr. (+9% YoY) in Q2, contributing 44% to PEL’s overall revenue. Revenues (INR Cr.) Q2 EBITDA Margin − CDMO: INR 866 Cr. (+20% YoY) -1% 2%
Slide 29: Key developments during the quarter
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 29 Key developments during the quarter CDMO Complex Hospital Generics India Consumer Products ■ Strong growth in development order book ■ Improving market demand for products ■ Launched 15 products and 38 SKUs in H1, used in surg
Slide 30: Key strategic priorities: Pharma
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 30 Key strategic priorities: Pharma 1 Delivering consistent revenue growth and improve profitability 2 Pursuing organic and inorganic growth opportunities leveraging fresh capital Capacity expansion across multiple sites Acqu
Slide 31: Financials
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 31 Financials
Slide 32: Diversified Revenue Mix
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 32 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-20 30-Sept-19 % Change 30-Sept-20 30-Sept-19 % Change H1 FY2021 FY2021 Financial Servi
Slide 33: Consolidated Profit & Loss
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 33 Consolidated Profit & Loss (In INR Crores or as stated) Quarter II ended Half year Ended Particulars 30-Sept-20 30-Sept-19 % Change 30-Sept-20 30-Sept-19 % Change Net Sales 3,302 3,271 1% 6,239 6,457 -3% Non-operating other in
Slide 34: Consolidated Balance Sheet
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 34 Consolidated Balance Sheet (In INR Crores) Particulars As on Sep 30th, 2020 Equity Share Capital 45 Other Equity 31,430 Non Controlling Interests - Borrowings (Current & Non Current) 42,675 Deferred Tax Liabilities (Net) 26 Ot
Slide 35: Appendix
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 35 Appendix
Slide 36: Developing fund-based platforms – Alternative AUM
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 36 Developing fund-based platforms – Alternative AUM Alternative AUM JV Partner / Size / Initial As on Sep-2020 Platform Co-investor Commitment (in INR crores) 2,105 India RF – Stressed Asset Investing Bain Capital USD 629m Mezza
Slide 37: Stage-wise provisioning
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 37 Stage-wise provisioning Particulars (in INR Cr., unless otherwise stated) As on Mar-2020 As on Jun-2020 As on Sep-2020 Gross Stage 1 & 2 Loans 49,761 49,984 50,243 Provision - Stage 1 & 2 loans 2,479 2,518 2,542 Provision Cove
Slide 38: Dial-in details for Q2 & H1 FY2021 Earnings Conference Call
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 38 Dial-in details for Q2 & H1 FY2021 Earnings Conference Call Event Location & Time Telephone Number +91 22 6280 1264 / +91 22 7115 8165 (Primary Number) +91 70456 71221 (Local Number) India – 5:30 PM IST 1800 120 1221 / 1800 26
Slide 39: For Investors
Piramal Enterprises Limited – Q2 & H1 FY2021 Results Presentation Page 39 For Investors : Hitesh Dhaddha Chief Investor Relations Officer Email : hitesh.dhaddha@piramal.com Phone : +91 22 3046 6306 Aditya Sharma Chief Manager – IR (Financial Services) Email : investor.relations@Piramal.com Phone : +
Piramal Enterprises — H1 FY2021 Earnings Presentation on 6ix