Piramal Enterprises Limited

Investor Presentation
February 2015
Piramal Enterprises An Overview:

Piramal Enterprises
Rev : ` 38.3bn | Operating Profits : ` 6.9bn
Equity Investment in :
SCL ` 20.1bn
STFC ` 16.3bn
SCUF ` 7.9bn

Healthcare Information Financial

Management Services*
Rev : ` 23.0bn Rev : ` 8.3bn Rev : ` 6.8bn

Pharma Critical OTC + Life DRG, US Lending Asset

Solutions Care Opthal Sciences Management
[Rev : [Rev : [Rev :
[Loan Book
` 14.5bn] ` 5.8bn] ` 2.7bn]
`39.3bn,]
[AUM
~`72.9bn]

Contract Niche OTC Focus on Global Lending to Real Estate

mfg. generic products Imaging healthcare Real Estate, third party
business Anesthetic business in Agents and information Education & fund
products India & JV Bio- management Infrastructure management
business with Allergan Orthopedics business Sector business

All figures are for 9MFY2015

*Includes Investment Income

2
Healthcare Segment

3
Pharma Solutions

4
 Pharma Solutions - A full-service CMO across the
drug life-cycle

Medicinal Early Phase Custom Synthesis and Formulations

Development Full scale supplies
Chemistry

CLINICAL DEVELOPMENT

Pre-clinical Pre-clinical
Discovery Phase I Phase IIa
Dev. Dev. Phase IIb Phase III Launch
Research API API
API Forms

Clinical Trials Formulations

Formulations development

Medicinal API
API API
&
Canada Torcan
Synthetic Canada - Torcan Canada - Torcan (niche APIs
Chemistry UK Morpeth only)
UK Morpeth
Services
India Ennore UK - Morpeth
India - India Ennore
Ahmedabad Formulations India - Digwal, Ennore
Formulations
UK Morpeth Formulations
UK Morpeth
India - Ahmedabad UK - Morpeth
India Ahmedabad
India - Pithampur

Sales (` In crores) Q3FY2015 YoY Growth 9MFY2014 YoY Growth

Pharma Solutions 487 3% 1,448 13% 5

Entry into Sterile Injectable Space

Coldstream Laboratories, a U.S. based CDMO

acquired in January 2015 for ~USD 30 Mn

Focused on development & manufacturing of

sterile injectables

Offers clinical trial to commercial-scale

manufacturing of sterile liquid and
injectables

Capabilities include handling of high potency View of Coldstream Laboratories facility

& cytotoxic compounds including ADCs

Sterile injectable is one of the fastest growing

segments within formulations manufacturing

Significant synergies with existing business

expected by uniting the strengths,
competencies, expertise and portfolios

Will expand our offerings, reach & access to new

customers Coldstream Laboratories specializes in development
& manufacture of cytotoxic & potent compounds
 Pharma Solutions Global Footprint

CANADA
Toronto
UNITED KINGDOM
- API development & manufacturing Morpeth
- API development & manufacturing
- Formulation development
- Commercial formulation manufacturing
- Clinical Trial supplies & distribution
Grangemouth
- Antibody Drug Conjugates development &
manufacturing

RM supplies

INDIA
Mumbai R&D
- API development
USA CHINA
- Formulation development
Kentucky Shanghai
- Formulations Development -Sourcing Office
Chennai
(Injectables)
- Formulations Manufacturing
-API development & manufacturing
(Injectables)
Hyderabad
- API manufacturing

Ahmedabad
-Drug Discovery Services
-Formulations Development
-Clinical Trial manufacturing

Pithampur
-Commercial formulation manufacturing
7
Market Characteristics
Global Outsourcing market estimated to be $63 billion, growing at 12%
Market share of India extremely low
Lower costs and high quality manufacturing skill presents compelling rationale to
shift manufacturing to India
Cost pressures on big pharmaceuticals due to patent expiries leading to
opportunities for Indian CMOs

Global Outsourcing Market Size India CMOs Size

70.0
63.0 5 4.6
60.0 4.5
4
50.0
3.5
40.0 35.7 3
$ Bn

30.0 $ Bn 2.5 2.1

2
20.0 1.5

10.0 1
0.5
-
0
Year 2012 Year 2017 Year 2012 Year 2017
Source: Scrip Insights 2012 8
Critical Care

9
Critical Care Strong presence in the Inhalation
Anesthetic Market

Geographies US EU RoW US EU RoW US EU RoW

/Key
Products
Halothane

Isoflurane

Sevoflurane

Desflurane

Propofol

2006 2013 2016

Addressable
Market
Opportunity 100 850 1,800
~ $ Million

10
 Critical Care Infrastructure in place for sustained
rapid growth
84 Distributors

32 Sales Field Force

38 Managers

Products Products Approvals/Certi

Manufactured fication

Bethlehem USFDA, AFSSAPS

Digwal US FDA, WHO,

UKMHRA, MCC

Ambernath (BSV) WHO (` In crores) Q3FY2015 YoY Growth 9MFY2015 Growth

Baddi (Abbott) UKMHRA Critical Care 213 8% 582 7%

Sales

Desflurane Sevoflurane Isoflurane Halothane Propofol Haemaccel 11

OTC Business

12
OTC Strong Track Record
Strong brand portfolio across various high growth segments.
Sales & Marketing network distributes to 2,30,000 lacs outlets which includes 1,40,000 lacs
chemist stores & covers all 481 one lakh+ towns
Products launched through FY2013 showing traction Lacto Calamine Reneu, Lacto Calamine
Sun Screen, Polycrol+, Jungle Magic perfumes (extensions) & Jungle Magic Mosquito Bandtiz
Acquired Caladryl from Valeant Pharma in Oct 2013. In Mar 2014, entered into an exclusive
sales & distribution partnership with Merisant India for its artificial table-top sweetener, Equal.

(` In crores) Q3FY2015 YoY Growth 9MFY2015 Growth

OTC + Opthal JV 94 14% 273 12%

Sales 13
Life Sciences

14
Life Sciences - Status of PELs drug pipeline
Drug Candidate/ Description & Current Status
Products

Florbetaben Reliably detects Beta-Amyloid in the brain, which is the pathological

hallmark of disease in probable Alzheimer's disease patients

Status :
Approval from USFDA and the European Commission received in March
2014 and February 2014 respectively.
Registered first sales during Q2 in Europe & US.

BST CarGel Bio-orthopaedic product for cartilage repair

Status :
Received regulatory approval for and launched BST Cargel in Europe.
Filed for insurance reimbursement in several countries by which
patients have access to medical technologies through their health
insurance payer.
Financial Services

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Lending
Financing to Real Estate & Education Sectors :

Currently lending to real estate developers & educational institutes in Mumbai, Pune,
Bengaluru, Chennai, Coimbatore, Bhopal & NCR

Loan Book as on December 31, 2014: ` 3,008 Cr.

Financing to Infrastructure Sector :

Making superior risk adjusted returns through funding Infra Cos. with a mix of projects that
already generate strong operating cash flows & projects requiring last mile funding.

MOU with SBI Capital Markets for prospects in acquiring controlling stakes in road PPP assets.

Entered into a strategic alliance with APG Asset Management for investing in rupee
denominated mezzanine instruments issued by infrastructure companies in India. Target
investment of $ 1 bn over next 3 years. Initial commitment of $375 mn from each party.

Invested ` 925 Cr till date:

` 425 Cr in Navayuga Road Projects Pvt. Ltd. in Mar, 2013 - 8 Road SPVs (mix of operational and under
construction assets) for a tenor of 60 months

` 500 Cr in Green Infra Limited in Apr, 2013 - 300 MW operational assets (wind and solar) for a tenor
of 60 months
Asset Management
Provided through a Private Equity Fund with Rs. 7,286 Cr under management.

Presence in Tier 1 cities, through 10 Local partners, in ~30 Projects.

Closed Fund Scheme V at Rs. 1000 Cr & Domestic 3rd party advisory mandate-IIFL
Income Opportunities Fund, at Rs. 750 Cr

Entered into 50:50 alliance with CPPIB Credit Investments Inc. for providing rupee
debt financing to urban residential projects. Initial commitment of $ 250mn from
each party.
Information Management Segment

19
Decision Resources Group - An Overview
Subscription-based global decision support market leader and premium brand
in the healthcare information services market (~$5.7 billion 1)

~$2.4 billion segment is addressable by the Company today

Provides web-enabled insights and predictive analytics via proprietary

databases, high-value analytical reports and tools

Enables customers to make fully-informed key investment and cost containment

decisions in each phase of the life sciences lifecycle

Proprietary content and data streams created in-house through a rigorous,

highly-analytical, knowledge-driven process

Staff of approximately 290 analysts, including 100+ highly-credentialed PhDs, MDs,

MPHs, Pharmacists, MBAs and key industry experts

Global scale and reach with offices in Belgium, Canada, England, Japan and
various locations across the U.S. (~500 full-time employees)
1. Veronis Suhler Stevenson, 2011..

20
Decision Resources Group - An Overview
Long-standing, strategic relationships with the top pharmaceutical, medical
technology and managed care companies

Over 96% customer renewal rate in CY2014

48 out of top-50 pharma companies are its clients

10+ year relationships with top ten customers

Products and services are deeply imbedded in customers work flow and decision
making processes

Continues to grow in new geographies and product categories.

Acquired Abacus International, a provider of evidence-based global market access

solutions in early December 2012 in the UK.
Decision Resources Group Areas of Operation

BioPharma Market Access Medical Technology

Reports on therapeutic area Data services on payer share Therapeutic reports and
and drug utilization trends, and drugs coverage by sales audits covering major
used by R&D and brand insurers device categories
teams
Decision Resources: Health Leaders: Managed care Millennium Research:
Therapeutic area assessment market intelligence (e.g. data on Medical technology market
(e.g. epidemiology forecasts, payer market share within intelligence, including hospital
market share projection specific geography) data on product utilization,
physician/payer insight) syndicated reports, and
Fingertip Formulary: Data customer research
BioTrends: Specialty portal that provides information
therapeutic treatment on formulary status for drugs AMR: Syndicated audit of
algorithms, disease within a specific geography hospital diagnostic imaging
management patterns, procedure volumes and
assessment of new product PharmaStrat: Payer focused contrast media usage
launches strategy consulting, market
research and market monitoring
Manhattan Research:
Annual studies on eHealth Pinsonault: data and analytic
trends and digital media tools , training, research and
adoption among healthcare events targeting managed
professionals and consumers markets sales and marketing

AMR: Hospital therapeutic

audits and formulary insights
Strategic Investments

23
Equity investments
Shriram Group
In May 2013, PEL acquired ~9.96% stake in Shriram Transport Finance
Company Limited, one of the listed NBFCs of the Shriram Group. Total
investment of ` 16.4bn.

In April 2014, PEL acquired a stake of effective 20% in Shriram Capital Limited,
the holding company for the Financial Services & Insurance entities of the
Shriram Group. Total investment of ` 20.1bn.

In June 2014, PEL acquired a stake of 9.99% in Shriram City Union Finance, a
retail finance focused NBFC of the Shriram Group. Total investment of ` 7.9bn.

These investments are in line with PELs long term strategy of building presence
in the financial services sector.

Mr. Ajay Piramal appointed as a Chairman of Shriram Capital.

Vodafone India

In April 2014, PEL monetized its 11% stake in Vodafone India for ` 89.0bn.
Total investment was of ` 58.6bn.
24
Summary Financials Q3FY2015

25
Financial Highlights
Revenue growth across all business segments during both the quarter and nine-month periods
Up 9% at ` 1,399 Crores during Q3 FY2015
Up 13% at ` 3,826 Crores during 9M FY2015

Operating profit :
16% higher at ` 320 Crores during Q3 FY2015
22% higher at ` 693 Crores during 9M FY2015

Net profit :
Increased to ` 249 Crores for Q3 FY2015 vs. loss of ` 11 Crores for Q3 FY2014
Increased to ` 2,755 Crores for 9M FY2015 vs. loss of ` 190 Crores for 9M FY2014
(In ` Crore)

Q3 Revenue Q3 OPBITDA Q3 Net PAT

1,399 320 249

1,286 276

(11)

Q3 FY2014 Q3 FY2015
Q3 FY2014 Q3 FY2015 Q3 FY2014 Q3 FY2015
Segment-wise Topline Performance

% change - Q3 FY2015 Vs. Q3 FY2014 Revenues

Total Revenue 9%

Healthcare 6%

Financial Services 11%

Information Management 18%

% change - 9M FY2015 Vs. 9M FY2014 Revenues

Total Revenue 13%

Healthcare 11%

Financial Services 24%

Information Management 14%

Revenue growth across business segments during both the quarter and nine-month periods
Consolidated Financial Performance
(In ` Crores or as stated)

Particulars Q3 FY2015 Q3 FY2014 9M FY2015 9M FY2014

OPBITDA 320 276 693 568

OPBITDA Margin (%) 23% 21% 18% 17%

PBT (Before Exceptional Items) 207 2 262 -158

Net PAT (Excluding Exceptional Items) 214 -8 322 -197

Reported Net PAT 249 -11 2,755 -190

Reported EPS 14.4 -0.7 159.6 -11
1. Exceptional item includes gain during Q3 FY2015 on account of partial reversal of amount written down in Q2 due to scaling
back of investments in NCE Research. Exceptional item for 9MFY2015 also includes gain on sale of 11% stake in Vodafone
India for ` 8,900 Cr (Investment of ` 5,864 Cr made in FY2012) partly offset by amount written down on account of scaling back
of investments in NCE research
2. Includes our share of profits in Shriram Capital

Delivered robust financial performance with growth in operating profit and net profit in both Q3 and
9M FY2015, primarily on back of strong operating performance
Business-wise Revenue Performance
(In ` Crores or as stated)
Quarter III ended Nine Months ended
Net Sales break-up % Sales % Sales 9 Months 9 Months
31-Dec-14 31-Dec-13 % Growth % Growth
FY 2015 FY 2014

Healthcare 57% 794 750 6% 60% 2,303 2,070 11%

Pharma Solutions 487 471 3% 1,448 1,283 13%
Piramal Critical Care 213 197 8% 582 542 7%
OTC & Ophthalmology 94 82 14% 273 245 12%
Financial Services 16% 225 202 11% 18% 679 546 24%
Information Management 27% 377 318 19% 22% 825 725 14%
Others - 3 16 - - 19 40 -
Total 100% 1,399 1,286 9% 100% 3,826 3,381 13%

Note:
1. Foreign Currency denominated revenue in 9M FY2015 was ` 2,631 Cr (69% of total revenue).
Consolidated Profit & Loss
(In ` Crores or as stated)
Q3 FY15 9M FY15
Particulars
31-Dec-14 31-Dec-13 Growth 31-Dec-14 31-Dec-13 Growth
Total operating income 1,399 1,286 9% 3,826 3,381 13%
R&D Expenses 47 62 (25%) 221 227 (3%)
Other Operating Expenses 1,032 948 9% 2,912 2,586 13%
OPBIDTA 320 276 16% 693 568 22%
OPBIDTA Margin % 23% 21% 18% 17%
Non-operating other income 67 20 245% 180 236 (24%)
Interest expenses 101 230 (56%) 392 780 (50%)
Depreciation 80 64 26% 219 182 20%
Profit before tax & exceptional items 207 2 - 262 (158) -
Exceptional items Expenses/(Income) (35) (3) - (2,692) 7 -
Income tax 33 9 244% 311 36 774%
Profit after tax (before MI & Prior Period items) 209 (10) - 2,642 (187) -
Minority interest - 1 - - 0 -
Share of Associates 40 (0) - 112 (3) -
- -
Net Profit after Tax 249 (11) 2,755 (190)
EPS (` /share) 14.4 (0.7) - 159.6 (11) -

Note:
1. Non-operating other income primarily consists income from our treasury investments.

2. Interest expense for the quarter was lower due to reduction in debt using cash proceeds from sale of stake in Vodafone India.

3. Exceptional Gain during Q3 FY2015 is on account of partial reversal of amount written down in Q2 on account of scaling back of
investments in NCE Research. Exceptional gain for 9MFY2015 also includes gain on sale of 11% stake in Vodafone India for ` 8,900 Cr
(Investment of ` 5,864 Cr made in FY2012) partly offset by amount written down on account of scaling back of investments in NCE
research.

4. Income under share of associates primarily includes our share of profits at Shriram Capital.
Consolidated Balance Sheet
(In ` Crores or as stated)
Particulars Dec 31 2014 Mar 31 2014
Shareholders' Funds
(A) Share Capital 35 35
(B) Reserves & Surplus 12,076 9,287
Minority Interest - -
Loan Funds 6,309 9,552
Deferred Tax Liability 4 9
TOTAL 18,424 18,882
Fixed Assets 7,212 6,682
Investments 7,201 9,446
Deferred Tax Asset 29 50
Current Assets, Loans and Advances
Inventories 698 652
Sundry Debtors 787 725
Cash and Bank Balances 1,685 334
Other Current Assets 441 1,045
Loans and Advances 2,121 2,558
Less : Current Liabilities and Provisions
Current Liabilities 1,116 1,431
Provisions 634 1,179
TOTAL 18,424 18,882

Break Up Loan Funds (In ` Crores) In ` Terms In $ Terms Total

As on 31-Dec-14 2,940 3,369 6,309
As on 31-Mar-14 6,105 3,447 9,552
Note: Foreign currency loans have been used mainly to acquire assets outside India & will be repaid from net cash generated
from non-India assets.
For Investors:

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