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Overseas Investor Conference Presentation

March 2016

Piramal Enterprises Limited

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

comparable to current period.

Note: Figures in previous periods might have been regrouped or restated, wherever necessary to make them

or circumstances after the date thereof.

Piramal Enterprises Limited does not undertake any obligation to update forward-looking statements to reflect events

other risks.

technological changes, investment and business income, cash flow projections, exposure to market risks as well as

implement its strategy, the Companys growth and expansion plans, obtain regulatory approvals, provisioning policies,

These risks and uncertainties include, but are not limited to Piramal Enterprise Limiteds ability to successfully

results to differ materially from those suggested by the forward-looking statements.

These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual

expressions may constitute 'forward-looking statements'.

'should', 'potential', 'pipeline', 'guidance', 'will pursue' 'trend line' and similar expressions or variations of such

'anticipate', 'estimate', 'intend', 'plan', 'contemplate', 'seek to', 'future', 'objective', 'goal', 'likely', 'project', 'on-course',

which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may', 'expect', 'will continue',

Except for the historical information contained herein, statements in this presentation and any subsequent discussions,

Disclaimer

PAGE 1

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Entered Financial Services in


2011

From 40th largest in 2007, business grown to become 7th largest currently.
Most brands among top two in their respective market
Revenues grew at 18% CAGR over last 7 years

Aggressively grew pharma


OTC business since 2007

Created one of largest Real Estate developer financing business of India


Deployed over $3 Bn in >160 transactions across debt & equity
APG and CPPIB chose us for partnership
Entered retail financing through stakes in Shriram Group of Companies

Now amongst top integrated global CDMOs offering both APIs & Forms
10 facilities located in NA, Europe & Asia All key ones are FDA approved
Revenues grew at 16% CAGR over last 5 years

Entered pharma CDMO


business in 2003

M&As till 2009 & organic initiatives later - Now worlds 3rd largest business.
Presence in around 120 countries
Revenues grew at 18% CAGR over last 5 years

Sold Domestic Formulations at $3.8 Bn (9x sales & 30x EBITDA)

Transformed from 48th to 4th largest pharma company in India

Outcome / Potential Outcome

Entered Inhalation
Anaesthesia business in 2002

Entered pharma business in


1988 by investing $1 mn

What we did?

Unparalleled track record of developing large profitable


businesses

PAGE 2

RoE in FS business
25%+

Vodafone deal Realized IRR @ 19%


p.a

Mr. Ajay Piramal now


Chairman of Shriram
Capital (Holdco)
Contributing to
Shrirams long term
growth strategy

$0.8 bn invested in
Shriram Group

MAR 2016

Discontinued NCE
research
Exited non-strategic
businesses

Selective acquisitions
in OTC and Pharma
Solutions

5 Year Revenue
CAGR - ~17%

~$0.5 bn invested in
Healthcare

Business, geographic,
currency diversification
Strong profitability
margins

~$0.7 bn invested in
Information
Management

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. Used average exchange rate of Rs.60 per $ for conversion of INR into USD

Average yields on loan


- 17%

Invested $1.8 bn
(on B/S) & $1.4 bn
(off B/S) in FS

Key capital allocations

Special dividend

Annual dividends

Buyback

Capital returned to
shareholders through:

$0.8 bn of capital
returned to
shareholders

$3 bn realized (net of taxes) from Abbott on sale of our Domestic Formulations business
+
Free cash flow realized from our operations over last few years

Efficient capital allocation over years

PAGE 3

HC - 71%

FY2013
$0.6 bn

FS -11%

IM -18%

FS - 18%
HC - 62%

FY2015
$0.9 bn

IM - 20%

MAR 2016

2.
3.
4.

20%

HC

FS

100%

56%

IM

24%

$0.3 bn

$2.0 bn

Total Capital
Employed

PAGE 4

Others include treasury income.


As per books. Excludes unallocated portion of capital employed to various business segments
Used average exchange rate of Rs.60 per $ for conversion of numbers

FY2010

FY2015

Movement in capital employed mix3 (%)

Significant shift in the capital employed to non-Healthcare


sectors as well

DRG

Revenues : 19%

Information Management

9M FY2016 Revenues : $0.8 bn

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. Healthcare revenues include revenues from other businesses contributing 1% of the total revenues
for FY2015

FY20112
$0.3 bn

HC - 80%

Others - 20%

Movement in revenue mix (%)

Diversification of revenues towards high growth business


segments

Investments in Shriram

Alternative Asset Management

Critical Care

Consumer Products

Wholesale Lending

Revenues : 27%

Revenues : 54%

Pharma Solutions

Financial Services

Healthcare

Piramal Enterprises

Created a strong business portfolio

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note: Healthcare revenues does not include revenues from others businesses

MAR 2016

+15%

+14%

+27%

% change - 9M FY2016 Vs. 9M FY2015 Revenues

+13%

+17%

+33%

+94%

+131%

Strong growth in revenues driven by improved operating performance across business segments

Information Management

Financial Services

Healthcare

Total Revenue

Information Management

Financial Services

Healthcare

Total Revenue

% change - Q3 FY2016 Vs. Q3 FY2015 Revenues

Revenue growth across business segments

PAGE 5

23

13
1

10

12

MAR 2016

2.

10

14

13

Others

Used average exchange rate of Rs.60 per $ for conversion of numbers

11

12

15

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. All historical numbers used in our analysis are the numbers as reported in those respective periods.

14

9MFY12

18

9MFY13

21

9MFY14

17

9MFY16

9MFY15

26

Q1FY12

Q1FY13

26

Q1FY14

Q1FY15

34

Q2FY12

15

Q2FY13

38

Q2FY14

Q2FY15

49

Q1FY16

Information Management

Q3 FY12

Healthcare

Q3FY13

Financial Services

Q2FY16

PAGE 6

19

In Rs. billion

Q3FY14

Business-wise revenue trend

Q3FY15

Consistent and strong revenue performance across all business


segments....

Q3FY16

5.7

9MFY14

3.6

9MFY13

3.2

9MFY12

MAR 2016

2.

0.4

6%

PAGE 7

6.3

3.2

2.8

34%

2.1

21%

21%

23%

Used average exchange rate of Rs.60 per $ for conversion of numbers

5.0

2.1

1.5

0.7

5%
0.3

9%

13%

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. All historical numbers used in our analysis are the numbers as reported in those respective periods.

3.0

1.6

1.4

0.8

0.8

14.1

6.9

9MFY15

15% 11%

9MFY16

13%

Q1FY12

15%

Q1FY13

14%

Q1FY14

19%

Q1FY15

17%

Q2FY12

17%

Q2FY13

20%

Q2FY14

18%

Q2FY15

33%

Q2FY16

29%

Q1FY16

OPBITDA Margin

Q3 FY12

Q3FY13

OPBITDA (Rs. billion)

Q3FY14

Operating profit and margin trend

Q3FY15

.resulting in significant growth in operating profits..

Q3FY16

(1%)

(6%)

892

7,970

9MFY16

3,205

9MFY15

(15%)

5%

MAR 2016

3.

10%

(11%)

(4%)

3%

17%

2%

6%

(1%)

16%

18%

PAGE 8

Net profit excluding exceptional item has been calculated by adjusting back the pre-tax exceptional
item to the reported net profit number for various periods except for FY2015, where the post-tax
exceptional gain from Vodafone transaction has been adjusted back to the reported net profit for
the quarter.

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. All historical numbers used in our analysis are the numbers as reported in respective periods.
2. Used average exchange rate of Rs.60 per $ for conversion of numbers

Q1FY12

1%

54
Q1FY13

17%

553
Q1FY15

8%

2,053
Q1FY16

14%

518
Q2FY12

16%

413
Q2FY15

Net Profit Margin

2,550
Q2FY16

639
Q3FY13

9%

1,540

9MFY12

(224)

9MFY13

(1,969)

9MFY14

(1,404)
Q1FY14

(481)
Q2FY14

(917)
Q2FY13

111
Q3 FY12

(140)
Q3FY14

Net profit and margin trend


Net profit excluding exceptional items (Rs. million)

2,241
Q3FY15

.and net profits

3,370
Q3FY16

Q1
Q2

Q3

FY12
Q4

Q1
Q2

Q4

Q1

1%-10%

Q3

FY13
Q2

Q3

FY14

0%

Q4
Q1

Q2

Q4

Q1

Below 0%

Q3

FY15

Q2

FY16
Q3

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PAGE 9

Information Management grew in all 11 quarters since acquisition despite economic volatility in West

Healthcare grew in 19 out of last 20 quarters

Financial Services grew at >20% in 13 out of last 15 quarters

In FY16, overall growth has been higher than 20% in all three quarters

Positive growth across business segments in last 10 quarters

Consolidated revenues grew in 19 out of 20 quarters

* Investment income from treasury operations for various periods has been clubbed under Financial Services to make numbers more comparable

11%-20%

Before acquisition of DRG

Q4

FY11

21% and above

Total Revenues

Information Mgt

Fin. Services

Healthcare

Businesses

Matrix showing YoY revenue growth over last 20 quarters

Consolidated revenues growth in last 20 quarters

PAGE 10

EXECUTIVE DIRECTOR,
LEADS OTC, HR, ETC.
MBA, STANFORD

VICE-CHAIRPERSON
EMINENT SCIENTIST
AWARDED PADMA SHRI

EXECUTIVE

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

EXECUTIVE DIRECTOR,
25+ YEARS WITH GROUP
TURNAROUND BUSINESSES

NANDINI PIRAMAL

DR. SWATI PIRAMAL

INDEPENDENT

MAR 2016

VIJAY SHAH

FORMER CHAIRMAN,
ICICI BANK

FORMER VICE-CHAIRMAN,
TCS

S RAMADORAI

SENIOR MD & Co-CHAIRMAN,


ASIA OPERATING COMMITTEE,
BLACKSTONE, SiNGAPORE

N VAGHUL

FORMER CHAIRMAN,
HINDUSTAN UNILEVER LTD

GAUTAM BANERJEE

KEKI DADISETH

EMINENT SCIENTIST
FORMER DG, CSIR
AWARDED PADMA VIBHUSHAN

EMINENT SCIENTIST
FORMER DIRECTOR - IISc
AWARDED PADMA SHRI

FORMER MD & CEO,


HDFC STANDARD LIFE

DR. RAGHUNATH MASHELKAR

PROF. GOVERDHAN MEHTA

DEEPAK M SATWALEKAR

FORMER PRESIDENT & CEO


TRANSUNION

SIDDHARTH (BOBBY) MEHTA

AWARDED ENTREPRENEUR OF THE YEAR BY UK TRADE & INVESTMENT COUNCIL


AWARDED CEO OF THE YEAR BY WORLD STRATEGY FORUM
AWARDED GLOBAL LEADER OF TOMORROW BY WORLD ECONOMIC FORUM
SERVED ON PM TASK FORCE ON KNOWLEDGE BASED INDUSTRIES AND PM COUNCIL FOR
TRADE & INDUSTRY

AJAY PIRAMAL
CHAIRMAN

High standards of corporate governance


CHAIRMAN

Executive Director
Independent Director
External Experts
Business CEO
Management Members

Executive Director
External Experts
Business CEO

Investment Committee for


RE Asset Management

FINANCIAL SERVICES

Executive Directors
Independent Directors
External Expert
Business Heads
Management Members

Ex. Vice Chairman of DSP Merrill Lynch


Member of SEBI and RBI Committees

Former ED & HeadWholesale Banking, HDFC Bank


Worked for 26 years in Bank of America

Founder & CEO of Arka Capital Advisors;


Former MD of Warburg Pincus

Among panel of lawyers for SEBI, CCI and WTO Panel


for the Government of India

Shitin Desai

Harish
Engineer

Rajesh Khanna

Shikhar Ghosh

N. Vaghul

Tara
Subramaniam

R A Shah

Bharat D. Shah

Deepak M.
Satwalekar

Independent Director
External Expert
Business CEO
Management Members

Information Management
Board

Professor of Entrepreneurial Management at HBS


Founder and CEO/Chairman of eight companies

Former Chairman, ICICI Bank

Director - Sun Group


Past experience in HDFC Limited.

PAGE 11

Solicitor and senior partner at M/s Crawford Bayley &


Co

Chairman, HDFC Securities


Advisor HDFC Bank

Former MD & CEO, HDFC Standard Life


Has been consultant to the World Bank and ADB

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Partner with PWC


Practicing in M&A

Ashish Dalal

Suhail Nathani

Worked with Mckinsey and Intel


MBA from INSEAD, France

Niraj
Bhukhanwala

MAR 2016

Investment & Advisory


Committees for Special
Situation transactions

INFORMATION MANAGEMENT

Independent Directors and External Experts who are members of Business Boards/ Investment Committees

Executive Directors
External Expert
Key Business CEOs
Management Members

Investment Committee for


Real Estate Lending

Pharma Operations Board

HEALTHCARE

Business Boards / Investment Committees : Operating our business segments as three virtual companies

Board and Board-Sub Committees with majority Independent Directors

Robust Governance mechanism

MAR 2016

Organizations

Among top 10 global sovereign pension funds


Strategic alliance to deploy upto USD 500 mn of debt financing to residential projects in India

Alliance Partner
Real Estate Financing
Total AUM - C$283 Bn

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PAGE 12

A leading US based global private equity firm


Exited from Decision Resources Group in 2012 for ~US$ 635 mn

Strategic Partner
Total AUM US$ 45 Bn

Among top 50 global pharma companies


PEL sold its Pharma DF business to Abbott for $3.8 Bn, at 9x sales and 30x EBITDA

Acquirer Domestic
Formulations Business
Total Assets - $41 Bn

One of the worlds largest global investors, wholly owned by the Government of Singapore
Among top investors in Nicholas laboratories in early 90s

Among top 2 mobile operators in the world


PEL bought 11% stake in Vodafone India. Monetized by realizing 52% over amount invested

PEL had invested


in Vodafone India
Market Cap - $81 Bn

Financial Partner
Total AUM >US$ 343 Bn

Allergan India a 51:49 joint venture between Allergan Inc and PEL
Commenced commercial operations in 1996. India leader in ophthalmology

JV Partner
Market Cap - $112 Bn

One of the largest financial services business conglomerate in India


PEL holds stakes in holding co. & listed subs. Mr. Piramal is Chairman of SCL (holdco.)

Netherlands largest asset manager


Strategic alliance to deploy upto USD 1 bn in infrastructure mezzanine investments in India

Alliance Partner
Infrastructure Financing
Total AUM - 405 Bn

PEL invested in
Shriram Group
Total AUM Rs.900+ Bn

Key highlights

Nature of Partnership

Strong partnerships

PIRAMAL ENTERPRISES

INR/share

INR/share

Dividend paid

Net cash flow

1989-1992

1988

32%

18

18

CY13

53

53

CY14

43

14%

113

7,946

CY15

1024

20

1,004

CY15

1998-2003

CY12 CY13 CY14

18

18

CY12

1993-1997

4,624

CY11

378

378

CY11

MAR 2016

2012-2015

1,753

C. Post Sale

As on Date

3,770

A+B+C

Capital Raised

All numbers till 1992 represents book value


Analysis carried out based on market information till 31 Dec 2015
Used average exchange rate of Rs.60 per $ for conversion of numbers

2010-2011

1,233

B. Sale period

Incremental Market Cap

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

2.
3.
4.

2004-2009

623

Dividend Paid

Note:
1. Company raised merely $80 mn during the entire period (includes initial capital invested in
the company in 1988)

INR/share

Nifty as on 31 Dec

Annualized
Return (IRR)

UOM

Particulars

INR/share

PEL Share price as


on 31 Dec

Annualized Return
(IRR)

UOM

Particulars

Annualized return of PEL vs Nifty

A. Before sale of our Domestic Formulations business to Abbott

Capital returned through buyback

Shareholder value creation in less than 3 decades


(In USD million)

Creating and delivering significant value for our shareholders

PAGE 13

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PAGE 14

Quartile
4

151-200
companies

Source: Bloomberg, Company Financials

Quartile
3

101-150
companies

Price / Book

Quartile
2

Price / Earnings

51-100
companies

3Yr Net Profit CAGR

Quartile
1

3Yr Revenue CAGR

Top 50
companies

BSE-200
BSE
200

PEL positioning among BSE 200 companies on revenue, profitability and valuation parameters

PEL among top performing companies of India on key


parameters

4%
7%
26%
13%
7%

8%
37%
29%
17%
7%
17%

Lupin

Dr. Reddy's

Cipla

Aurobindo Pharma

Median

HDFC (Consolidated)

Bajaj Finance

Indiabulls Housing Finance

LIC Housing Finance

Mahindra Finance

Median

MAR 2016

EBITDA
Margin

YoY
PAT
growth
PAT
Margin

103%

22%

22%

38%

12%

-17%

-20%

13%

21%

55%

13%

-21%

-18%

2.
3.

16%

16%

8%

13%

28%

17%

19%

Excluding Shriram Group companies


Excludes exceptional items

149%

20%

-34%

20%

24%

44%

10%

15%

14%

14%

16%

15%

15%

33%

16%

13%

16%

35%

34%

14%

28%

29%

13%

-1%

28%

61%

YoY
Asset
growth1

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

29%

Top 5 listed NBFCs of India

23%

23%

22%

27%

27%

28%

Top 5 listed Pharma Companies of India

YoY
EBITDA
growth

Source : Bloomberg, Company and peer financial statements


Note:
1. YoY asset growth for all companies are as on 30th September 2015.

Piramal Enterprises
27%

-3%

Sun Pharma

YoY
Revenue
growth

Companies

9M FY16 (in %)

PEL Vs. Peers : Performance and valuation metrics

4.0
3.4
5.3
5.3

21
24
17
24

5.5

19

19

12

10

25

1.3

2.2

2.0

2.2

2.1

4.4

4.8

7.5

34

25

6.9

PAGE 15

P/B

38

P/E

Trailing 12M

Financial Services

Among top deployers of


capital in India

Market leaders in
Used CV, MSME
Financing

20% stake in Shriram Capital


10% stake in STFC
10% stake in SCUF

Invested
$0.8 bn

Retail financing
Used CV financing
MSME financing
Gold & home loan
Personal loan
Life and general insurance
Broking

Strategic stakes in Shriram


Group

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. Used average exchange rate of Rs.60 per $ for conversion of numbers

MAR 2016

AUM
$1.4 bn

Third party funds invested in


Real Estate
Special Situations

Alternative
Assets under Management

Strong portfolio with a total investments, loans and assets under management of $4 bn

Loan book
$1.8 bn

Financing for :
Real estate
Special situations

Wholesale
Lending

Complete suite of products to meet diverse customers needs

Financial Services

Financial Services : Diversified exposure across segments

PAGE 17

FY12

FY11

FY13

43

20

FY14

76

29

16

121

FY15

84

48

46

178

MAR 2016

86

111

46

243

9M FY16

FY12

FY13

10

FY14

21

FY15

43

FY12

FY13

FY14

Interest Income
Dividend Income - Shriram
Associate Income - Shriram
Investment Income
Total
7

FY15

11

9M FY15

60

PAGE 18

9M FY16

14

9M FY16

Rapidly growing income from FS business


(in Rs. billion)

FY11

Loan Book
Asset Management

Strong trend of cumulative exits / repayments1, 2


(in Rs. billion)

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Notes:
1. Excludes our investment in Vodafone India, which was exited during FY2015
2. Exits from Asset Management business have been included on calendar year basis

39

42

38

38

63

Investment in Shriram
Loan Book
Asset Management

Built a solid financial services portfolio1


(in Rs. billion)

Financial Services : Built a robust and scalable financial


services platform

Robust asset quality with negligible NPAs

Among leaders in residential developer financing in


India Getting quality deals from top developers

Strong growth in Construction Financing Now 38% of


book size

Strategic alliance with CPPIB

Strategic alliance with APG for investments in infra

FY12

4
FY13

20

FY14

29

48

FY15

Of the total 132%


increase over FY15
loan book, 80% is
driven by
construction finance

9MFY16

111

PAGE 19

Note:
1. Excludes our investment in Vodafone India, which was exited during FY2015 and includes special
situation investments

FY11

(In Rs. billion)

Trend showing significant scaling up of loan book1

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Minimum construction/execution risk

MAR 2016

Healthy security and cash cover of 1.5x - 2x

Special Situation :

>70% portfolio with grade A

Real Estate Lending:

Gross NPAs at 1%; provided for more than required

Significant growth due to our entry into construction


finance few quarters earlier

Total Loan Book of Rs.111 bn as on 31 Dec 2015 vs.


Rs.39 bn, as on 31 Dec 2014

Wholesale Lending : Growing exponentially, robust asset quality

1.0

0.3

0.3

0.4

0.6

0.0

0.5

1.0

0.8%
0.6%
10.1%

Indiabulls Housing Fin.


LIC Housing Finance
Mahindra Finance

~1%

Piramal Enterprises
All numbers are as on 31 Dec 16/ for 9M FY2016
PEL ratios are for its lending business

0.7%

0.8%

Dewan Housing Fin


Median

2.9%

L&T Finance Holdings

3.3%

1.3%

Bajaj Finance

Cholamandalam Fin

0.7%

Gross NPA
ratio1

HDFC (Consolidated)

Top NBFCs

1.
2.

25%+

1%

9-10%

25%+

19%

19%

11%

15%

7%

19%

27%

21%

19%

RoE

PAGE 20

Comparison of PEL with other large NBFCs on key parameters

RoE on Loan Book

Gross NPA Performance

Cost of Capital

AA (ICRA)

~17%

Average Yield on Loans


Credit rating

1.1x

Ratios

PEL overall Debt / Equity

Particulars

PEL performance against key ratio matrices

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
FY14 FY14 FY15 FY15 FY15 FY15 FY16 FY16 FY16

MAR 2016

20

40

0.8

1.1

1.5

60
0.9

2.0

80

0.8

2.5

(x)

100

Net Debt/Equity

3.0

Loan Book

120

(Rs.billion)

ROE expected to further improve with increase in


scale of business, optimum leverage levels, more
trusted partnerships and down-selling opportunities.

PEL overall Net Debt / Equity trend

Still significant potential to grow business by


increasing leverage

B/S headroom - key competitive advantage

Maintaining strong balance sheet in challenging


economic scenario.

Strong balance sheet gives huge potential to grow our


Financial Services segment

Exited more than 92% of corpus in vintage funds

Strong sponsor commitment of 7.5%

MAR 2016

86.4

PAGE 21

Gross AUM as on Increase in Real


Increase in
Gross AUM as on
31st Dec 2014 Estate Gross AUM Special Situations 31st Dec 2015
AUM (under APG)

72.9

9.0

4.5

Growing Alternative Asset Management business


(Rs. billion)

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PEL earns Management Fees and Carry

Rs.4.5 billion funded under alliance with APG

Special Situations :

Invested in 61 projects in 7 cities with 24 top developers

Expecting to reach 100% in next few months

Real Estate gross AUM of Rs.82 billion

Real Estate :

Total gross Assets under Management grew to Rs.86


billion

Alternative Asset Management

Manpower strength

Customers

Industry rank in used CV and MSME financing

76,000+

12 mn

#1

MAR 2016

Source: Livemint, 17 April, 2014

PAGE 22

Ajay Piramal is a good entrepreneur and


we are organization builders. The equity
investment by Piramal in Shriram creates a
platform where both these skills get
combined. So the entrepreneurial skills of
Piramal Group will certainly help in
introducing new ideas into the way we are
doing business at Shriram Group......and
now with Piramal on board, we can look
forward to better entrepreneurial thoughts
that can enable the business to do things
differently and at a different pace.

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note:
1. Includes Shriram Transport Finance and Shriram City Union Finance

Number of branches

November 2014

Shriram Capital

Chairman of

appointed as

Ajay Piramal

Mr. R. Thyagarajan, Founder of Shriram


Group on Piramals investment deal

June, 2014

3,000+

April, 2014

May, 2013

Rs.8.0 bn

Market capitalization of listed entities1

Rs.21.5 bn

Rs.16.4 bn

Invested

US$ 4.5 bn

Invested

Invested

stake in SCUF.

Assets under management in financial services

stake in SCL.

stake in STFC.

Acquired ~10%

US$ 16 bn

Acquired 20%

Acquired ~10%

Partnership with Shriram Strategic in nature

MAR 2016

Enter
more
partnerships

Continue the
growth
momentum

Contribute in
taking
Shriram to
next level

Develop
strong system
and maintain
robust asset
quality

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PAGE 23

Hired external consultant to assist in developing


strategy

Focused on developing long term strategy

Mr. Piramal now Chairman of Shriram Capital

Consistently monitor & react to early-warning signals

Strengthening teams to handle potential scale

Automatization of systems and processes

ALM framework in place

Effective measures taken to maintain robust asset


quality

Inorganic opportunities could also become the key drivers of growth in future

To explore down-selling opportunities to improve


ROEs

Partnerships to generate more fee income

Multiple partners in Real Estate AUM business

Partnerships like CPPIB & APG reflects robustness


of business model

Special Situations to also look into non-infra sectors

Real Estate financing to grow construction finance

Potential to grow through optimizing leverage level

Financial Services Strategy : On track to create one of the


largest well-diversified Financial Services businesses of India

Healthcare

2 years in a row

MAR 2016

Note:
1. CMO Leadership Awards
2. CPhl Awards 2015

FY10

FY11

10

FY12

14

16

FY13

5 years CAGR @ 16%


(Global CDMO market
growing @ 9%)

(in Rs. billion)

FY14

18

FY15

20

Strong revenue performance

9M
FY15

14

17

PAGE 25

9M
FY16

Coldstream Laboratories, Kentucky

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Acquired Coldstream facility. Commenced capacity expansion.

Enhanced capacity at Grangemouth

Doubled capacity at Discovery services sites.

Acquisition, Debottlenecking and Capacity Expansion

Business head globally awarded as CEO of the year in 2015

Rated1 among best global CDMO in quality, reliability & regulatory

Along with various customers, serving 5 of top 7 global pharma cos.

10 sites in NA, Europe and India. All key sites approved by FDA.

Amongst top integrated CDMOs offering both APIs &Forms

Address customers needs across drug lifecycle

Pharma Solutions: Our unique positioning

Phase 1

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

UK - Morpeth

UK - Billingham

UK - Grangemouth

MAR 2016

Clinical Trial Supplies

India - Mumbai

Regulatory,
Pharmacovigilance,
Patents

UK Morpeth, Grangemouth (ADC)


India Pithampur
US - Kentucky

Bio-catalysis

SPECIAL SERVICES

UK Grangemouth (ADC)
India Ahmedabad, Mumbai
US Kentucky

Late phase Formulations (OSDs & Steriles)

Off-patent

Early phase Formulations

Commercial (CMO)

On-patent

India Digwal, Ennore


Canada Aurora
UK - Morpeth

Launch

India Ennore
Canada Aurora

Phase 3

Late phase API

Phase 2

Early phase API

Development (CRO)

Preclinical

Antibody Drug Conjugates

India Ahmedabad

Medicinal &
Synthetic
chemistry
services

Discovery

Discovery

Pharma Solutions: End-to-end service provider

PAGE 26

MAR 2016

KENTUCKY

USFDA, MHRA

API & Formulation


development &
manufacturing

MORPETH

USFDA, MHRA

ADC Manufacturing

API & Formulation


development

MUMBAI

Formulation development

Drug discovery and

AHMEDABAD

Grangemouth
Morpeth

Premixes
WHO-GMP

Vitamins and Minerals

MAHAD

CHINA

manufacturing

API development &

ENNORE

manufacturing
USFDA

API development and

DIGWAL

manufacturing
USFDA, MHRA

Formulation

PITHAMPUR

Sourcing office

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

USFDA

Sterile Development
and Manufacturing

USFDA, MHRA

API development &


manufacturing

CANADA

GRANGEMOUTH

Pharma Solutions: Strong global footprint

PAGE 27

MAR 2016

Continue to look at attractive M&As.

Inorganic
Growth

Constantly
improving Quality
and Customer
Centricity

Focused
Customer
Segmentation

Targeting Biotech, medium, virtual


companies

Targeting late phase opportunities

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Focus on execution to ensure sustainable performance

Customer Centricity: Organization wide initiative to improve customer experience & service delivery.

Quality, EHS & Reliability: Invested in processes / capabilities

Acquired U.S. based CDMO


Coldstream in 2015, for development
& manufacturing injectables.

Executed debottlenecking initiatives in API plants to handle higher volumes.

Debottlenecking /
Capacity expansion

Capacity expansion at Discovery Services, Grangemouth and Cold Stream

Pharma Solutions strategy : Series of initiatives undertaken to


deliver strong performance in coming years

PAGE 28

Abbott

Baxter

PCC

FY2009

3%

MAR 2016

FY2015

12%

Isoflurane

Europe

ME/Africa

Halothane

Desflurane

US

Latin America

Sevoflurane

Asia

Product-wise

Isoflurane

* Desflurane is expected to get launched in 2017

Halothane

Sevoflurane

Baxter

Desflurane*

AbbVie

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Piramal

PAGE 29

Only company with entire portfolio of Inhalation Anaesthesia

Geography-wise

PEL rapidly gaining share in the global inhalation anaesthetic market

FY2012

8%

Source : Internal estimates, secondary market research

0%

2%

4%

6%

8%

10%

12%

14%

PEL growing global market share

12%

Market Share

2014 global inhalation anaesthesia market ~$1.2 billion

Critical Care : Significant positioning in global inhalation


anaesthetic market

MAR 2016

FY2005

0.1

FY2006

0.7

Acquired pharma
business of ICI India
Limited - Entry in
Inhalation
Anaesthetics:
Halothane

2002

FY2008

0.8

FY2009

1.3

FY2010

3.3

Acquisition of brand
Haemaccel from
Plasmaselect,
Germany.

FY2011

3.9

FY2012

4.1

FY2013

6.2

Acquired Minrad Inc., US


- Gave access to
Sevoflurane & Desflurane
Acquired Rxelite Inc., US
- Gave direct presence in
the region
Acquired Injectable
Anaesthesia business in
India

2009

FY2014

7.2

FY2015

7.6

Production doubled at
Bethlehem ; Registered
Sevolfurane in EU
countries

2010-2012

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

FY2007

0.8

Acquired Inhalation
Anaesthetics business
of Rhodia Organique,
UK - Distribution
network across 58
countries.
Manufacturing
technology for
Halothane & Isoflurane.

2005

2008

Became one of the top 3 players in the world

6 key acquisitions till 2009 and organic growth later

Critical Care: Successful growth strategy

9M
FY2015

5.8

PAGE 30

9M
FY2016

6.3

(Revenue in Rs. billion)

Presence in now over 100


countries; >50% market
share in emerging
markets; significantly
increased Sevoflurane
market share in US

2013-2015

MAR 2016

Manufacturing Plant

Distributors

Direct sales force

118 countries
Recently launched
Australia
Germany
Saudi Arabia
UK
Netherlands
Malaysia
Iraq

25
Entry Planned
Brazil
Russia
China
Canada

Sub-Saharan Africa

14

Australia

South Asia

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

19

Latin America & Caribbean

Middle East & North Africa

East Asia & Pacific

15

PAGE 31

Significant share in UK and Japan

Serving over 6,000 hospitals in the world

North America

Over 50% market share in Emerging Markets

Manufacturing facilities in the US and India

33

Market share in US grew from 20% in 2011 to 30% now

Global workforce with ~75% staff located outside India

Europe & Central Asia

6 million surgeries globally

Presence in over 100 countries

Critical Care: Unparalleled global footprint

Launch Desflurane in 2017 Challenging the


domination of Innovator

Launch
Desflurane

Enter new market


& increase share
in existing
markets

MAR 2016

Entered co-promotion agreement & launched two


hospital products
PAGE 32

Actively looking at both organic and inorganic opportunities


to add other critical care products to portfolio.

Add new products


to leverage strong
marketing network

Further improve
low cost position

Investments in Bethlehem site are yielding results

Lowest cost producer - progressing well on further cost


reduction initiatives

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Growth
Strategy

Having established in US, Japan and EMs, focusing on


growth in Europe
Significantly improved market share in UK with
expansion in Scotland, Wales and London region

Note: All market data is based on primary & secondary research carried out internally

Critical Cares growth drivers : Efforts delivering results. Further


efforts are on

Rs.1.3 billion

Throatsil - Sore throat pain relief product

Quikkool - Respected brand in Mouth


Ulcer

Jungle Magic Leading brands for kids

Tetmosol Largest in medicated soaps


for scabies

Rs.0.5 billion

Focused on launching innovative


products for children

PAGE 33

Allergan India, a JV with Allergan - India


leader in ophthalmology

Acquired brands in Gastro-Intestinal

Acquired Littles a baby care brand


for babies in the 0-4 age group

i-pill

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Source : Independent syndicated research providers

MAR 2016

Value Offtak
Valu
Offtake
Rs.0.5 billion

Polycrol Largest antacid in East India

Lacto

PEL has strong brand portfolio: Most brands are among the top two in their respective representative market

Lacto No. 1 among calamine lotions

Caladryl Largest in anti-allergy and


anti-itch topical application segment

i-pill 2nd largest in emergency


contraceptive

Recognized as Super Brand

Saridon Largest in oral analgesic

Saridon

Consumer Products: Brands in leadership position

PEL to expand this segment - already has presence


through Polycrol.

To launch new formats and target wider reach.

Littles is a 30 year old brand with high consumer recall.

Operates in the Rs.10 billion non-food baby-care


category, which is growing at 13%.

Will leverage on our India-wide strong network.

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Potential to increase distribution to 1,50,000 outlets

Includes entire product range across 6 categories.

Acquired baby-care brand Littles in Nov 2015

Includes key brands like Naturolax, Lactobacil &


Farizym leading brands in Gastro-Intestinal segment
(GI)

Acquired 5 brands from Organon India & MSD BV in


Dec 15

Consumer Products : Acquired two brand portfolios to leverage


strong distribution

PAGE 34

Rank

17

2009

2010

MAR 2016

FY08

1.1

(in Rs. billion)

FY10

FY11

2.0

FY12

2.2

FY13

2.7

2012

FY14

3.1

Rank

3.6

FY15

2013

Acquired Caladryl
from Inova
Pharmaceuticals

9M FY15

9M FY16

2.8

PAGE 35

18%

PEL

CAGR

12%

Market

CAGR

2020

2015

Acquired the
baby-care brand
- Littles

Rank

Acquired 5 brands
in GastroIntestinal segment

2.6

2014

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

FY09

1.2

1.8

2011
Acquired i-pill
from CIPLA.
Build capabilities,
expanded field
force

Domestic
Formulations
business sold to
Abbott

OTC (including Ophthalmology) revenues

Independently
started OTC
Business after
dissolution of JV
with BOOTS

2008

28

40

2007

Rank

Rank

Consumer Products: Growing faster than market

Sales Force Automation Program successfully rolled out


PAN India across channels. Enabled efficient productivity at
every retailer under direct coverage

Sales Force
Automation

Servicing 3.5 lacs outlets, out of


which chemist stores
are 2.2 lacs

~1,500 towns
with population over 20,000

Growing organically & inorganically

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PAGE 36

Industry leading field force and India-wide coverage will enable drive significant growth and boost profitability in
coming years

Continue to aggressively look at acquiring quality brands at


attractive valuations

New product field force launched which will be ramped up in


phases, should be completed by the end of FY16

New Product
Development

Inorganic
Initiatives

Geographical expansion program to get fully operational by


end FY16 - coverage to all 20,000 population towns
Exports to nearby geographies started contributing to business

Geographical
Expansion

Consumer Products initiatives : Simultaneously focused


towards improving growth and profitability margin

Information Management

What is the best evidence to support my access and reimbursement argument?


How will the key payers in the future make decisions about my product?

Where should my digital spend be targeted?


How can I segment and target segments uniquely?

What are my competitors doing?


How is the market unfolding? Who is winning and losing?

Market Access

Commercial
Optimization

Digital
Innovation

Market
Assessment

Performance
Improvement

Our
Business

Customized Services

Analytical Tools

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Proprietary Survey Data

Health Plan Data

MAR 2016

Hospital Audit

Leaders Interview

PAGE 38

Proprietary Databases

Market Forecasts

Where can I improve my hospitals performance? In Revenue Cycle Management? In IT? In Supply Chain?
How do I benchmark relative to hospital peers?

What levers can I pull to improve my brands volume?


How is my product being perceived in market relative to competition?

Which therapeutic markets have the highest potential?


What should healthcare organizations do as healthcare shifts to a value focus?

Market
Assessment

What we do in our Information Management business :


answer our clients most pressing questions

LIFE SCIENCES

PAYER /
PROVIDER

900+ employees globally

15 office locations globally

Solutions
Consulting Services
Research Products
Data & Analytics

Data
Research Products

MAR 2016

Provider Payer

Solutions
Consulting Services
Research Products
Data & Analytics

Life
Sciences

FUTURE
USD 16 bn

PAGE 39

May 2015 Acquired HBI


Trusted provider of best practice research,
training & services to >1,400 hospitals in US
Marks Companys entry into provider space

Leading Solutions for Health Plans and


Pharmacy Benefit Managers
Marks Companys entry into payer space

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Source: Based on proprietary market research and internal DRG estimation

Life Sciences

USD 6 bn

PRESENT

Life Sciences

USD 2 bn

PAST

Feb 2016 - Acquired Adaptive Software

Capabilities across customers product life cycle

CY2015 Revenue - $178 Mn

Expanding into New End Markets, Products and Geographies

>75% recurring revenue

Serves major Developed and Emerging Markets

Information Management : strong positioning to monetize


significant market opportunity

MAR 2016

43%

Solutions
Portfolio
(78%)

Data and
Analytics

Research
Products

2.8%
2.7%

3.4%
2.9%

3.5%

3.6%

4.0%

4.7%

Astellas Pharma
AstraZeneca
Bayer
Boehringer Ingelheim
Bristol-Myers Squibb
Johnson & Johnson
Merck & Co
Novartis
Pfizer
Roche

Customer

>10 yrs

>10 yrs

(1)
>10 yrs

>10 yrs

>10 yrs

>10 yrs

>10 yrs

>10 yrs

>10 yrs

>10 yrs

# of Years

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

PAGE 40

>10 year relationships with all of the Companys top ten


customers

Other
Customers
62.8%

4.8% 4.7%

With 97% retention and ~ 75% recurring revenues, the business has high revenue visibility

35%

22%

Global
Consulting
Services

100% among top 20 customers

97% client retention by value during CY2015

Over 75% of Revenue is recurring

DRGs clients utilize multiple portfolio offerings leading to

deeply entrenched relationships

DRG serves nearly all leading life sciences companies

Top 20 relationships comprise ~57% of revenue

Information Management : diversified customer base with high


long term revenue visibility

MAR 2016

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2004

2005

$37

2005

2006

$51

2006

2007

$62

2007

2010

2009

$103

2010

$116

Revenue
In $ Million

2009

2011

$131

2011

2012

$139

2012

2013

$151

2013

2014

$164

2014

2015

$178

2015

Post-Acquisition

2016

PAGE 41

Adaptive Software
Leading Solutions for Health Plans and Pharmacy
Benefit Managers
Marks Companys entry into payer space

Healthcare Business Insights (NBI)


Trusted provider of best practice research,
training & services to >1,400 hospitals in US
Marks Companys entry into provider space

HealthHiway
Strength in providing analytics & solutions to
Indian healthcare providers

Activate Networks
Expanded DRGs analytics capabilities
Supports clients with sales force targeting

Relay Technology Management


Enabled DRG to supply clients with premier
analytics

Abacus International
Gave access to European Health Economics and
Outcomes Research (HEOR) market

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

2008

$94

2008

Pre-Acquisition

DRGs accretive acquisitions to date and their corresponding impact on revenues

Information Management : M&A Crucial for Growth

* As of 9/30/15 filing

MAR 2016

Connolly
Truven
CRF
Emdeon
IBM Watson
IBM Watson
Median

iHealth
Heartbeat Experts
Vitruvian
Altegra
Truven Health
Merge Healthcare

$ 1,200
$ 136
$ 374
$ 910
$ 2,600
$ 1,000

Acquisition Price
(USD mn)

EV/Revenue (x)
7.4
6.1
5.5
4.9
7.0
6.1

7.5
5.2
4.5
4.3
4.2
4.2
4.4

Value / LTM
Revenue (x)

2015 Multiples
EV/EBITDA (x)
16
18
84
48
29
29

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Buyer / Investors

Target

Sector M&A valuation multiples

Source : Capital IQ

Verisk Analytics, Inc


Inovalon Holdings, Inc
Athenahealth, Inc.
Medidata Solutions, Inc.
Veeva Systems Inc.
Median

DRG Peers

DRGs peers valuation multiples

Information Management : DRGs Peer valuations

14
22
18
16
17
24
17
PAGE 42

Transaction Value /
LTM EBITDA (x)

EV (USD mn)
14,628
2,495
5,116
1,914
2,669
-

MAR 2016

Product
innovation

Continued
development of
cost &
operational
synergies

Inorganic
Growth
opportunities

Growth
Drivers

Expanding
market size &
geographical
presence

PAGE 43

Continue to look at attractive


opportunities to enhance capabilities /
expand geographically through
acquisitions

Leadership team progressing well on


integrating products and services under
one brand

Leveraging India and reviewing cost


structure to identify margin enhancement
opportunities

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Multiple new product ideas in pipeline

New delivery platform for all DRG


research reports is progressing well
and will transform how customers
access and consume DRG content

Adaptive software to enable entry into


payers market

HBI acquisition to enable entry into


provider market

DRG India office on target with 120+


positions on-boarded in two offices

Information Managements growth initiatives : targeting


multiple ways to enhance growth and increase profitability

Appendix

MAR 2016

13,996

18,587

Total 2

32.8%

13.1%

131.3%

15.4%

8.8%

20.4%

16.7%

100%

0.4%

19.5%

26.8%

5.7%

12.9%

34.8%

53.4%

% Sales

48,764

187

9,494

13,051

2,755

6,309

16,967

26,031

31-Dec-15

38,251

405

8,253

6,740

2,550

5,822

14,480

22,852

31-Dec-14

27.5%

15.0%

93.6%

8.1%

8.4%

17.2%

13.9%

% Change

Nine months ended

(In Rs. million or as stated)

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

2. Foreign Currency denominated revenue in 3Q FY2016 was Rs.11.7 billion (63% of total revenue) and in 9M FY2016 was
Rs.30.6 billion (63% of the total revenue)

1. Including Ophthalmology

Note:

186

3,772

91

4,266

Information Management

2,194

842

2,131

4,871

7,844

Others

5,075

972

Financial Services

Consumer

2,317

Critical Care

Products1

5,865

9,155

31-Dec-15 31-Dec-14 % Change

Pharma Solutions

Healthcare

Net Sales break-up

Quarter III ended

9M FY2016 Diversified Revenue Mix

PAGE 45

13,996
469
10,316
3,211
23%
667
1,005
802
2,071
346
327
2,091
399
2,490
14.4

310
2,502
873
3,218
(150)
249
2,819
-2
397
3,217
18.6

31-Dec-14

18,587
314
11,991
6,282
34%

31-Dec-15
48,764
969
33,749
14,046
29%

33%
(33%)
16%
96%
(54%)
149%
9%
55%
(24%)
35%
(1%)
29%
29%
2,033
6,349
2,374
7,356
(267)
656
6,433
-3
1,268
7,704
44.6

31-Dec-15

1,807
3,916
2,189
2,618
26,918
3,111
26,424
-3
1,121
27,548
159.6

38,251
2,212
29,123
6,916
18%

31-Dec-14

27%
(56%)
16%
103%
12%
62%
8%
181%
(79%)
(76%)
13%
(72%)
(72%)

% Change

Nine months ended

% Change

Quarter III ended

(In Rs. million or as stated)

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Income under share of associates primarily includes our share of profits at Shriram Capital.

3.

MAR 2016

Tax expense for 9M FY15 include Rs.2.6 billion on gain from sale of stake in Vodafone India.

2.

Notes:
1.
Exceptional gain for 9M FY2015 majorly included gain on sale of 11% stake in Vodafone India for Rs.89 billion (Investment of Rs.58.6
billion made in FY2012) partly offset by the amount written down on account of scaling back of our investments in NCE research

Total Revenues
R&D Expenses
Other Operating Expenses
OPBIDTA
OPBIDTA Margin %
Non-operating other income
Interest expenses
Depreciation
Profit before tax & exceptional items
Exceptional items (Expenses)/Income1
Income tax2
Profit after tax (before MI & Prior Period items)
Minority interest
Share of profit/(loss) of associates3
Net Profit after Tax
EPS (Rs./share)

Particulars

9M FY2016 Consolidated P&L

PAGE 46

MAR 2016

FX Debt

INR Debt
113,191
39,371

Break Up Loan Funds (In Rs. million)

As on 31-Dec-15

As on 31-Mar-15

73,061

140,113

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Note: Foreign currency loans have been used mainly to acquire assets outside India & will be repaid from net cash generated from non-India
assets.

33,690

26,922

12,288
6,332
190,738

14,749
3,248
266,666

Total

6,749
8,317
4,601
3,545
34,748

7,802
9,021
4,652
5,685
42,265

TOTAL
Fixed Assets
Investments
Deferred Tax Asset
Current Assets, Loans and Advances
Inventories
Sundry Debtors
Cash and Bank Balances
Other Current Assets
Loans and Advances
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
TOTAL

Mar 31 2015
345
117,014
291
73,061
26
190,738
73,424
77,679
295

Dec 31 2015

(In Rs. million or as stated)

345
125,892
289
140,113
28
266,666
81,748
133,369
121

Shareholders' Funds
(A) Share Capital
(B) Reserves & Surplus
Minority Interest
Loan Funds
Deferred Tax Liability

Particulars

Consolidated Balance Sheet

PAGE 47

MAR 2016

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

All accruals realized till last quarter. Superior asset quality with negligible NPAs

De-risking portfolio by changing mix towards construction


finance & senior debt vis a vis equity / mezzanine
structures

Piramal group has a history of strong project development


capabilities - can take over, complete, sell project, if
required

Significant time spent for post-disbursement monitoring by


both investment and asset management teams to detect
and react to early warning signals

Established a dedicated asset management team of


financial and techno-commercial people across cities to
further enhance focus on asset quality

Healthy security and cash cover of 1.5x-2x based on


conservative underwriting assumptions

Healthy Security, Balanced Portfolio

PAGE 48

Large reputed partners like CPPIB re-assuring the investment


thesis

Independent Directors & External Experts in investment


committees

Independent legal and risk teams critically looking at


transaction

Strong financial, legal and business diligence.

Unique structuring of each transaction to address specific risks


with ability to enforce security in event of default

Care during transaction

Local teams based out of 6 cities to constantly access the


performance of the project

Post-transaction monitoring

Ability to mine primary data from existing portfolio to make


more informed decisions about product, price and sales
mix

Location and project selection - Mostly in Tier-1 cities in


select projects having intrinsic end-user demand

Developer selection >70% portfolio with grade A


developers

Diligence before transaction

Real Estate Financing : Robust asset quality is no.1 priority


for us

of

sterile

Significant synergies with existing business expected by


uniting the strengths, competencies, expertise and portfolios

Will expand our offerings, reach & access to new customers

PAGE 49

Coldstream Laboratories specializes in development


& manufacture of cytotoxic & potent compounds

View of Coldstream Laboratories facility

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

Site already has its order book running full


Execution of capex for capacity expansion on track

Significant traction at Coldstream site, post our acquisition.

MAR 2016

Acquisition playing out well

Sterile injectable is one of the fastest growing segments


within formulations manufacturing

Offers clinical trial to commercial-scale manufacturing of


sterile liquid and injectables
Capabilities include handling of high potency & cytotoxic
compounds including ADCs

manufacturing

&

Focused on
injectables

development

Coldstream Laboratories, a U.S. based CDMO acquired in


January 2015 for ~USD 30 Millions

Pharma Solutions : Entry into Sterile Injectable Space

PAGE 50

Well Positioned to be a market leader - in Europe, NA and


selected Asia-Pacific markets

High Quality R&D Team - Core members of Bayers team joined


Piramal Imaging leadership team.

PIRAMAL ENTERPRISES LIMITED OVERSEAS INVESTOR CONFERENCE PRESENTATION

High Market Potential - Molecular Imaging potential market size


of $1-1.5bn between 2020-2025

Attractive Pipeline in Neurology, Oncology & Cardiovascular


Imaging

MAR 2016

AD is a growing world-wide clinical challenge: >20mn patients


today, costs to grow from $200 bn in 2013 to $1.2 tn by 2050

Our Unique Positioning

Approved by US FDA in March 2014, European Commission in February 2014 and MFDS (South Korea) in December 2014
Registered first sales during Q2 FY2015
Currently selling in European key markets and the US
Manufacturing & distribution agreements executed in EU and US
Licensing agreements signed with partners in South Korea, Australia, Canada & Ireland
The teams are focused on driving sales by educating dementia experts and supplying Pharma trials as well as creating health
economic evidence for payors in registry trials.
We are seeking for a strategic co-investor to fund the business through key inflection points

Reliably detects Beta-Amyloid plaques in the brain, which is the pathological hallmark of Alzheimers disease

Lead Compound - Florbetaben

Acquired molecular imaging research and development portfolio of Bayer in 2012


Commercial Operations in US & UK and R&D hub in Germany

Promising Field - Future of diagnostic imaging

Entry into Business

Imaging : Well positioned to be a market leader

Bhavna Sinyal
Email : bhavna.sinyal@piramal.com
Phone : +91 22 3046 6570

Hitesh Dhaddha
Email : hitesh.dhaddha@piramal.com
Phone : +91 22 3046 6444

For Investors :