Piramal Enterprises

Piramal Enterprises Limited – Q2 & H1 FY2020 Results Presentation
Piramal Enterprises Limited

Q2 & H1 FY2020 Results
21 October 2019
Piramal Enterprises Limited – Q2 & H1 FY2020 Results Presentation Page 2
Key Financial Highlights
15% growth in Revenues 29% growth in Profit before 18% growth in Net profit1
during Tax & Exceptional items during
Q2 FY2020 during Q2 FY2020 Q2 FY2020
INR 3,604 Crores INR 733 Crores INR 569 Crores
18% growth in Revenues 25% growth in Profit before 19% growth in Net profit1
during Tax & Exceptional items during
H1 FY2020 during H1 FY2020 H1 FY2020
INR 7,110 Crores INR 1,338 Crores INR 1,029 Crores
Note:
1) Net Profit excludes exceptional gain/loss for the period
Operational highlights for the quarter
Financial Services Overall Pharma Housing Finance
Loan Book of INR 53,055 Crores; Revenue2 grew 19% YoY in Q2; Global Loan book grew ~3x times YoY to
Gross NPAs ratio at 0.9%; Pharma delivered strong EBITDA INR 6,393 Crores; constitutes 12% of
ROE of 17.3%1 margins of 24% overall loan book vs. 4% a year ago
Consumer Products Quality & Compliance Healthcare Insights & Analytics
Successfully cleared 11 regulatory

Strong recovery in India Consumer
inspections (including 3 USFDA YoY revenue growth of 14% during Q2
Products – YoY revenue growth of
inspections) and 75 customer audits & H1 FY2020
53% in H1
during H1
Note:
1) ROE for current reported period is considering Cash Tax and other synergies from reverse merger
2) Pharma includes Global Pharma Services, Global Pharma Products and India Consumer Products
Delivering robust growth - track record (In INR Crores)
Total Revenues1 Net Profit1,2
Net Profits Net Profit Margin %
7,110
4% 14% 14% 14% 14% 14%
6,047
5yrs CAGR – 24% 5 yrs CAGR – 60% 1,029
4,790 863
3,742 686
2,904 537
2,425
405
97
H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20
Note:
1) FY2015 results have been prepared based on IND GAAP and FY2016 onwards on IndAS basis
2) Net Profit excludes exceptional gain/loss for the specified period
Superior revenue growth across business segments
Revenues: H1 FY2020 vs. H1 FY2019 Revenues: Q2 FY2020 vs. Q2 FY2019
Total Revenue 18%

Total Revenue 15%
Financial Services 21%

Financial Services 13%
1
Pharma 16% Pharma1 19%
HIA 14% HIA 14%
Note: (1) Pharma includes Global Pharma Services, Global Pharma Products and India Consumer Products
Net worth & Revenue Split

Equity breakdown as of Sep-2019 Revenue breakdown for H1 FY20
Pharma & DRG 1 DRG Pharma

Shriram 9%
18% 35%
Investments &
Others
28%
Financial
Financial Services Services
54% 56%
Total Equity as of Sept’19 – INR 26,655 Crores Total Revenue for H1 FY2020 – INR 7,110 Crores
Well-capitalized businesses with a diversified revenue mix

Note: (1) Includes Equity from unallocated business
Performance trend in Financial Services

Financial Services Performance • Asset Quality: Consistently maintaining a healthy asset
(In INR Crores) quality
Loan Book1 RoE (%)2,3
− GNPA ratio below 1% since last 14 quarters
15 16 20 25+ 25+ 19 19 17 • Loan book diversification: Housing finance loan book grew
~3x times YoY to INR 6,393 Crores
7-year Loan Book − Housing Finance constitutes 12% of overall loan book
CAGR of 82%
52,793 53,055 as of Sep-2019 vs. 4% as of Sep-2018
Gross NPA ratio as on • Improving borrowing mix: Shifting borrowing mix towards
30 Sept 2019 is 0.9% long-term sources of funds
33,261
− Raised ~INR 24,000 Crores of long-term funds in the
19,640
last one year
− CP exposure reduced to ~INR 1,480 Crores from
9,020
~INR 18,000 Crores as of Sep-2018
2,650 3,602
812
• Returns: Continue to deliver strong ROE of 17.3% in
Sep'12 Sep'13 Sep'14 Sep'15 Sep'16 Sep'17 Sep'18 Sep'19 H1 FY2020
Note: (1) FY2016 - FY2020 results have been prepared based on IND AS, prior periods are IGAAP (2) ROE for past period are reported for full year (3) ROE for current reported period and FY2019 is
considering Cash Tax and other synergies from reverse merger
Consistent performance trend in Pharma
Pharma Performance • Growth: PEL’s H1 Pharma revenue has grown at a CAGR of

(In INR Crore) 16% over last 9 years
Pharma Revenue1,2 Global Pharma EBITDA Margin (%)
• Pharma business contributed 35% to overall revenue mix in
4 9 15 15 16 16 16 23 20 24 H1 FY20
• Profitability: Global Pharma (accounts for 91% of Pharma

9-year Revenue 2,489
revenues) has delivered a strong growth in EBITDA margins
CAGR of 16% 2,153
1,970 from 4% in H1 FY2011 to 24% in H1 FY2020
1,644 1,725
1,441 • Differentiated Model: Our differentiated business model with
1,260 focus on providing integrated pharma services and specialty
1,140
849 pharma products has enabled us to perform better than most
650
of the other Indian Pharma companies
• Quality & Compliance: Since FY2011, PEL has successfully

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 cleared 36 USFDA inspections, 151 other regulatory audits
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 and 1,064 customer audits
Note: (1) Pharma Revenue includes Global Pharma Services, Global Pharma Products, and India Consumer Products Revenue
(2) FY2016 - FY2020 results have been prepared based on IND AS, prior periods are IGAAP
Financial Services
Loan Book
Outstanding loan book1 (INR Crores)
■ Total Loan Book of INR 53,055 Crores (flat YoY)
■ ~INR 7,900 Crores of disbursements and ~INR 11,800 Crores of

repayments / pre-payments2 in H1 FY2020 52,793 53,055 3
■ Robust asset quality:

− Gross NPA ratio (based on 90 dpd) was 0.9%
− Provisioning stood at 1.8% of Loan book 33,261
19,640
9,020
2,650 3,602
812
Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19

Notes: (1) Carrying value till Dec’15 and amortised cost thereafter (2) Includes refinancing (3) Includes securitized assets through pass-through certificates (PTCs)
Loan book diversification

Breakdown of overall loan book
As on Mar-2015 As on Sep-2019
0%
12%
17%
4%
18%
48%
79%
22%
Wholesale Residential RE Wholesale Commercial RE CFG & ECL Retail
Merely 48% of the loan book is towards wholesale residential RE,

with ~66% of the lending exposure towards mid/late stage or completed projects
Note: CFG: Corporate Finance Group (incl. education sector loans) ECL: Emerging Corporate Lending
Asset-side
Repayments and developer sales

Wholesale loan portfolio: Repayments / pre-payments1 Developer Sales2
(INR Crores) (No. of units sold)
6,525
2,754 2,808
2,636 2,680
2,545
4,785
4,019 4,171
3,931
Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2
FY2019 FY2019 FY2019 FY2020 FY2020 FY2019 FY2019 FY2019 FY2020 FY2020
Repayments of ~INR 19,400 Crores in the past year, reflecting the quality of underwriting
Note: (1) Includes refinancing (based on carrying value) (2) Developer sales pertaining to projects as part of PEL’s loan book
Increasing share of retail loans

Retail housing loans outstanding
(INR Crores)
6,393
6,110 ■ Loan book of INR 6,393 Crores,
5,188 ~3x times as compared to Sep-2018
3,920
■ Presence: 15 cities, 17 branches
2,325
1,604 ■ Average ticket size: ~INR 70 lakhs
1,210
202 491
■ Customer mix: Salaried (62%) vs.
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
self-employed customers (38%)
Share of retail housing loans in overall loan book

1% 1% 3% 3% 4% 7% 9% 11% 12%
Share of retail loans to increased to 12% as of Sep-2019 compared to 4% a year ago

Asset Quality
GNPA ratio and provisioning
Gross NPA Ratio

(in %)
GNPA ratio below 1% Conservative provisioning Provision coverage

for the last 14 quarters at 1.8% of loan book of 194% as of Sep-2019
0.9% 0.9% 0.9%

0.6% 0.5% 0.5% 0.5%
0.4% 0.4% 0.4% 0.3% 0.3%
0.2% 0.2%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Factors enabling healthy asset quality
100% of wholesale real estate lending 100% deals with escrow accounts,
enabling complete visibility on developer’s cash
is secured, with a security cover of 1.5x-2x
flows
97% of developer loans are in Tier-1 100% of developer sales MIS monitored
cities every month
Independent risk and legal teams, 100% of transactions are covered as part of
directly reporting to Board Members ‘Early Warning Signal’ meetings
100% deals based on conservative ~66% of wholesale RE exposure towards

underwriting assumptions mid / late-stage or completed projects
Liabilities-side
Continue to further diversify funding mix
■ Raised ~INR 24,000 Crores of long-term funds (1-year & above) during the last one year from several banks
and financial institutions, which includes:
− ~INR 8,400 Crores raised via bank term-loans
− ~INR 14,700 Crores raised through NCD issuances from diversified investors, including banks, FIIs,
insurance companies, mutual funds, etc.
■ PTCs amounting to ~INR 2,400 Crores were the first rated securitization instrument of a wholesale loan
book in the Indian market – received the 2nd highest rating from CRISIL
Significant reduction in exposure to CPs

Commercial Paper (CP) borrowings1
(INR Crores)
18,017
■ Reduced exposure to CPs by 92% YoY
− CPs outstanding with Mutual Funds

amount to merely INR 615 Crores currently
-92%
as compared to ~INR 15,600 Crores as of
Sep-2018
■ Reduction of ~INR 7,900 Crores in CPs during

1,483 Q2 FY2020
Sep-18 Sep-19
Note: (1) Overall CP borrowings

Asset-liability Profile
(in INR crores)
As on Sep 30, 2019
70,850
63,490
47,798
Cumulative Inflows
38,358 38,069
Cumulative Outflows 33,732
17,710
16,821
11,227
10,295
3,268 2,441 4,978 4,118
1,887 1,418 2,612 1,867
up to 14d up to 1m up to 2m up to 3m up to 6m up to 1 yr up to 3 yrs up to 5 yrs > 5 yrs
Positive gap across all maturity buckets
Note: Data for PCHFL

Borrowing mix
Borrowing mix by type of instrument Borrowing mix by investor
10% 5% 9% 6% 12% 7% 11% 9%

16% 2% 2% 18% 2%
2% 6% 2% 4% 6%
12% 7% 0% 2% 3% 2% 8%
2% 8%
15% 2% 2% 4%
18% 11% 8%
18% 19% 19% 21% 7% 4%
17% 29%
17%
67% 71% 69% 69%

63% 63% 62%
56%
47% 49%
Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
Loans NCDs / Bonds ECB CP Tier II Securitization Others Banks MFs Insurance FIIs Securitization Others
• Share of bank borrowings increased from 49% as of Sep-2018 to 69% as of Sep-2019

• Share of MFs in overall borrowings declined from 29% in Sep-2018 to 4% in Sep-2019
Note: Data for PCHFL
Alternative Assets Under Management


(in INR Crores)
India RF Platform (JV with Bain Capital Credit):
RE
■ Concluded three investments so far:
APG
− USD 156m1 invested in marine chemicals business in
India RF (Stressed Asset Platform) 1,845 Nov-2018
− USD 144m1 invested in pharmaceutical & vaccines
2,306 player in Apr-2019
1,000
1,830 − USD 51m in debt purchase of downstream steel player
Real Estate:
7,259 ■ The change in AUM for RE includes investments under
5,792 5,790
the co-investment platform with Ivanhoé Cambridge, a
real estate subsidiary of CDPQ
Sep-2017 Sep-2018 Sep-2019
Note: (1) Represents total investment size along with co-investor

Performance metrics
Income from Financial Services Key Performance Indicators: PEL Financial Services (excl. Shriram)
(in INR Crores)
Particulars H1 FY2020
3,968 Total Loan Book size INR 53,055 Cr.
8-year Revenue Total Equity on Lending (utilized synergies from reverse merger) INR 14,274 Cr.
CAGR of 53% 3,290 Debt-to-Equity 2.9x
Average Yield on Loans 14%
Average Cost of Borrowings 11%

2,270
Net Interest Margin 5.4%
Cost to Income Ratio 19.7%

1,450
Total Provisioning as on Sept 30, 2019 1.8%
Gross NPA ratio (based on 90 dpd) 0.9%

731
455 ROA 3.4%
345
129 156 ROA (considering Cash Tax and other synergies from merger) 4.0%
ROE 14.9%
H1 H1 H1 H1 H1 H1 H1 H1 H1
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ROE (considering Cash Tax and other synergies from merger) 17.3%
Note: FY2016 - FY2020 figures have been prepared based on IND AS, prior periods are IGAAP
Leverage and Capital Adequacy
Debt-to-Equity
In 3Q18, only ~INR 2,300 Cr. was

allocated to Financial Services from the
~INR 7,000 Cr. fund raise, of which ~INR
5,000 Cr. was to be allocated to FS
■ Capital adequacy ratio1 of 30% as of
6.4x In 4Q18, the remainder of the In 2Q20 additional equity of ~INR
~INR 5,000 Cr. was allocated
Sep-2019
1,700 Cr. allocated to Financial
5.5x towards the business Services from stake sale in STFC
4.6x
■ Debt-to-equity (incl. investments in
4.4x 4.4x
3.7x 3.9x 3.9x 3.8x Shriram) at 2.3x as of Sep-2019
2.9x
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
Note: (1) Capital Adequacy Ratio for PCHFL

Future Outlook for Financial Services

Financial Services: Key areas of growth & profitability
Wholesale Lending Retail Lending Asset Management
■ ‘Last-mile’ funding to developers ■ Expand target customer segment and ■ Extending our fiduciary franchise
geographic reach
− Senior secured lending − Partnerships across both asset
− Targeting self-employed customers for aggregation, as well as lending
− Superior risk-reward opportunities
higher yields and better fee income opportunities
■ Co-lending / co-origination with banks − Tap newer markets (Tier 2/3 cities)
■ USD 1bn InvIT platform with CPPIB,
− To reduce single borrower exposure 1st renewables focused InvIT in India
■ Leverage technology to reduce costs
− Jointly underwrite loans
− Centralizing operating model ■ Potential lending platform with large
− Generate fee income institutional investors for non-real estate
− Analytics-driven underwriting, based
and non-infra sectors
on behavior-driven models
■ Exploring inorganic growth opportunities
■ Enter consumer lending, driven by

technology at its core
Financial Services: Key Strategic Priorities
A Further diversification of the loan book
B Explore inorganic growth opportunities in retail financing
C Entering into consumer lending
D Reduce single-borrower exposure in the wholesale loan portfolio
E Tap superior ‘risk-reward’ opportunities in wholesale lending, e.g. last-mile funding, co-lending
F Further diversify borrowing mix towards long-term sources of funds
G Leverage technology to reduce costs and drive operational efficiency in retail lending
Piramal Enterprises Limited – Q2 & H1 FY2020 Results Page 30
Global Pharma
Consistent performance in Global Pharma

Global Pharma Performance Performance Highlights
(In INR Crores) ■ Global Pharma Revenues grew 17% YoY to INR 1,204
Global Pharma Revenue
2,267 Crore in Q2 FY20
- Global Pharma contributes 91% of total Pharma
2,007
9-year Revenue revenues
CAGR of 16% 1809
1526 1545 ■ Regulated Markets comprise 77% of Global Pharma

1330 revenues
1157
1052 ■ H1 Global Pharma EBITDA Margins at 24% - growing
778
consistently from 4% in H1 FY11
610
■ Key factors fuelling growth:
- Global Pharma Services: Strong order book and
Integrated offerings with niche capabilities
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 - Global Pharma Products: New key launches and realizing
synergies from acquisitions
Note:FY2016 - FY2020 results have been prepared based on IND AS, prior periods are IGAAP
Differentiated business model
PEL’s Strong presence in Specialty and CDMO ■ Our differentiated business model has
enabled us to perform better than
100% most other Indian Pharma companies
80% ■ Over 90% of revenues derived from

niche businesses of complex generics
60% and CDMO, as compared with less
than 5% for most large Indian Pharma
companies
40%
■ Positioned ourselves as partner of
20% choice for large Global Pharma and
virtual Biotech companies
0%
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 PEL ■ Built strong Capabilities in Highly
Potent APIs and Antibody Drug
India Generics/OTC International Generics API Specialty CDMO Conjugates (ADCs)
Note: 1) Pharma peer set includes (not necessarily in the same order): Aurobindo Pharma, Cipla, Dr. Reddy’s Lab, Lupin and Sun Pharma
2) Data set for the period ending March 31, 2019 Source : Companies reported numbers, Stock Exchange Filings, Bloomberg
Strong focus on Quality and Compliance

Multi-year track record of successful inspections
Total Regulatory ■ Successfully cleared 3 USFDA inspections for a key
Year USFDA Inspections Customers
facilities at Bethlehem, Lexington and Pithampur, 8
(incl. USFDA)
other regulatory inspections, and 75 customer audits
FY 2012 5 13 60
during H1 FY 2020
FY 2013 2 10 71
FY 2014 4 14 116 ■ Successfully cleared 36 USFDA inspections, 151
FY 2015 7 17 115 other regulatory inspections, and 1,064 customer
FY 2016 5 26 140 audits since FY2011
FY 2017 5 25 157 ■ A strong quality governance model, with the Quality

FY 2018 3 27 167 function reporting to a Board Member
FY 2019 2 44 163
■ Effective continuous improvement strategy to ensure
H1 FY20 3 11 75
world class standards
Total 36 187 1,064
Integrated business model in services business

Capabilities across entire drug life-cycle
■ Integrated model of services spanning

across the entire drug life-cycle
Leveraging multiple sites across the globe to offer integrated solutions
Type of Project
Route Scouting –
Intermediate dev. ~API
Formulation Dev
Formulation:
Dev, Mfg and
API and FDF:
Dev and
API dev, Clinical
Supply and
API and FDF:
Dev to Mfg
ADC Fill ■ Leveraging development capabilities
and Supply Finish
supply Supply Supply Commercial Supply to NDA filing to form a niche portfolio to be
Ahmedabad (PDS)  marketed by partners
Ahmedabad   
Ennore     ■ Riverview HPAPI expansion was

Digwal  successfully completed
Pithampur   - Further expansion plans are being
Riverview  evaluated at Riverview and
Lexington   Grangemouth
Aurora  
Morpeth  
Grangemouth 
Note: Representative Integrated Projects

Established relationships with Big Pharma as well as leading Biotechs

Well-diversified base of Pharma partners Our Biotech partnerships
■ Global Pharma Services business serves a diversified ■ Biotechs & virtual pharma, that are looking for integrated
customer base (served >500 customers in FY19) solutions across drug substance and product development
and manufacturing, are key drivers for growth
■ We supply globally with ~80% of revenue generated from
customers in US & Europe ■ Million dollar biotech customers: 15+
■ Order Book for Development services sustained the strong ■ Partnering with 5 biotechs featured in-
advancement seen in FY 2019 “Fierce 15 -
- 30 new customers have been added in Global Pharma Scientific Disruptors, Highest Levels of Funding
Services during H1 FY20; Over 50 new customers were
($50M+ Series A)”
added in FY19
■ We aim to expand our share of outsourcing from large

Pharma customers by offering integrated services and
building deeper relationships
Differentiated product portfolio of complex products

Acquired from Janssen Acquired from
Pharmaceutical Mallinckrodt LLC Acquired Acquired
in 2016 in 2017 in Jan 2018 in Jun 2018
■ Growth in all major product
Capsule for
Injectable
Plasma Intrathecal
Injectable
type I Selected families and geographies in
Inhalation Anaesthesia / for Other
Volume Spasticity Gaucher & Anti- Global Pharma Products business
Anaesthesia Pain Myxedema Products
Expander Pain Mgmt Niemann- infectives
Management Coma
Pick disease
■ Total 7 key launches in H1 FY20
Sojourn® Sublimaze® Haemaccel# Gablofen® Levothyroxine Yargesa Ampicillin- Generic APIs,
Sevoflurane USP Fentanyl citrate Polygeline Baclofen Sodium Miglustat Sulbactam - 3 launches in Q2 FY20
Vitamins and
Premixes,
Established ■ Built niche capabilities in
Terrell® Sufenta® MitigoTM Cefepime Products
Isoflurane USP Sufentanil citrate Morphine Sulfate injectable anesthesia, inhalation
anesthesia, intrathecal spasticity
Rapifen®
Fluothane® and pain management
Alfentanil Ceftriaxone
Halothane USP
hydrochloride
■ Synergies from integration of

TorraneTM Dipidolor®
Desflurane USP# Piritramide Oxacillin key acquired products from
Janssen and Mallinckrodt getting
Hypnomidate® reflected in the segment’s
Etomidate
performance
Glycopyrrolate** # In select markets Controlled substances ** Developed in-house

Continued improvement in the profitability and return profile

Significant improvement in EBITDA over the last few years Performance Highlights
(In INR Crore)
■ EBITDA margins at 24% in H1 FY20 as compared to 4% in
Global Pharma EBITDA Global Pharma EBITDA Margin (%) H1 FY11
4 9 15 15 16 16 16 23 20 24 − Consistent improvement in margin over last few years
533
3 yrs EBITDA ■ Margin expansion driven by:
CAGR – 31%
423 − Synergies from acquisitions
405
− Growth of high margin products
− Integrated offerings with niche capabilities
246 235
212 − Higher capacity utilization
175
154 − Backward integration of Raw Material
− Leveraging Global Distribution
70
21 − Process optimizations
− Cost improvement initiatives
H1 H1 H1 H1 H1 H1 H1 H1 H1 H1
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Consumer Products
Strong recovery in the India Consumer Products business

Revenue performance
External disruptions such as GST and demonetization had impacted Indian
(In INR Crore)
OTC and pharma industry through down-stocking by distributors and retailers
Jul 2017
Nov 2016
GST
Demonetization PEL’s took following measures:
Implemented
H1 FY2020 Performance: ■ Use of customized growth strategies for consumer and trade brands
222
Revenue growth: 53% YoY ■ Investments in digital assets to increase awareness amongst consumers
5-Year CAGR: 15% 180 ■ Use of technology and analytics to bring in operational efficiencies
161
145 ■ Established e-commerce channel
118
111
103
Record sales achieved during the first half of this FY:
■ Revenue grew 53% YoY to INR 222 Crore as compared with INR 145 Crore
in H1 FY2019
■ The trend continues from improved performance seen in H2 FY2019,
when revenues were up 30% as against H1 FY2019
H1FY14 H1FY15 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20
Note: FY2016 - FY2020 results have been prepared based on IND AS, prior periods are IGAAP
Using e-commerce, technology and media to grow the business

Partnerships with leading E-commerce players ■ Focus on e-commerce channel for growing trade brands:
− Significant upswing in Little’s toys and wipes, i-can, i-know
and LactoCalamine volumes
− Entire OTC product range has now been listed on e-
pharmacies
■ Using analytics and technology tools to improve productivity:

Leveraging technology across operations
− Insights gained by analytics are being used to drive business
decisions on distributor credit limits, product distribution,
scale, etc.
− Use of technology continues to monitor real-time sales
movement
■ Branding activities for leading consumer brands:

Re-initiation of TV commercials for Saridon, Polycrol and Little’s
− Q2FY20 saw business re-focussing on TV commercials in
selective target markets for key brands such as Saridon,
Polycrol and Little’s
• Initial results of these launches are quite positive
Future Outlook for Pharma

Piramal Enterprises Limited – Q2 & H1 FY2020 Results 42
Trends and Opportunities shaping the various Pharma Segments of PEL

1 Global Pharma Services 2 Global Pharma Products 3 Consumer Products Division
 Market size $100bn expected to  Niche branded generics for hospitals  Estimated OTC market size of ~$5bn3
grow @ 8% CAGR1 in India
Market  Addressable market of ~$58bn2
 Fragmented market with  Price and volume driven growth with
Scenario
opportunities for consolidation select categories (e.g. chronic)
growing in double digits
 Niche capabilities across entire  Strong portfolio of complex products  Strong product portfolio with most
drug life-cycle brands among the ‘Top-2’ in their
PEL remains  Entry barrier – Complex to respective representative market
well-  Multiple sites across globe manufacture, sell, distribute and
positioned offering integrated solutions administer, resulting in limited  Large India-wide distribution
to capitalize competition network - chemist coverage
 Focusing on US Emerging comparable with top OTC players
on market BioPharma  Targeting to add, organically or
opportunities inorganically, hospital generic products  Tapping ecommerce, exports and
institutional sales for growth
1. Vision Gain Report- June 2018 & Report by Evaluate, 2018; CDMO market size is different in different reports, so have assumed it to fall in a range of $70-100b
2. IQVIA – CY 2018
3. Statista, August 2019
Piramal Enterprises Limited – Q2 & H1 FY2020 Results 43
Opportunities for future growth in pharma

1 Global Pharma Services 2 Global Pharma Products 3 Consumer Products
 Deepen customer stickiness through co-  Maximizing value of and adding new  Building power brands as well as
investment model, integrated projects etc. products to existing inhalation anesthesia launching new products
portfolio
 Develop niche products to be marketed  Increasing sales force productivity and
by partners  Maximizing value of acquired products building talent capability
leveraging existing capabilities
 Inorganic growth by investing in  Extract synergy between Consumer
adjacencies, capabilities and capacities.  Balanced portfolio building approach Product Division and India branded
E.g. Solid Oral Oncology, pre-filled between organic development, in- generics business in future
syringes, unique/ niche technologies, etc. licensing and acquisitions
 Acquiring brands that can be marketed
through existing distribution channel
4 Opportunistic bets
 Acquisition of portfolios/ capabilities adjacent to our current businesses
 Re-entry into domestic formulations
Target to grow revenues of overall Pharma business by 15% in FY2021; EBITDA Margin target of ~25%
Healthcare Insight and Analytics

Healthcare Insights & Analytics: Transformative initiatives driving results

Revenue performance
■ Revenue grew by 14% YoY to INR 652 Crore during H1 FY2020
(in INR Crore)
652
■ Key catalysts leading to improvement in performance:
H1 FY20 Performance ̶ Building a Comprehensive Product Suite across Data and
Revenue growth: 14% YoY Analytics, Research Products and Consulting services
570
̶ Adding new clients by becoming a partner for healthcare
532 commercial optimization
523
508 ̶ Increasingly embedding our products in workflows of our
clients
448 ■ Improving EBITDA margins to 24% for Q2 FY2020 through:
407 ̶ Transforming global talent pool

̶ India-based employees now accounting for ~35% of our total
employees
H1 FY14 H1 FY15 H1 FY16 H1 FY17 H1 FY18 H1 FY19 H1 FY20 ■ Our solutions are helping our clients to improve patient
experience
Key Strategic Priorities for Future Growth
A Focusing on cutting edge technology like AI, machine learning and analytics-enabled solutions
B Customer-centricity to accelerate delivery of value by leveraging technology
C Integrating solutions from our various best-in-class offerings to provide unparalleled client value
D Expanding business into new markets other than US to capture significant market opportunities
E Streamlining operating processes and leveraging India presence & global procurement to improve margins
Financials
Diversified Revenue Mix

(In INR Crores or as stated)
Quarter II ended Half year ended
Net Sales break-up % Sales % Sales
30-Sept-19 30-Sept-18 % Change 30-Sept-19 30-Sept-18 % Change
Financial Services 1,954 1,732 13% 54% 3,968 3,290 21% 56%
Pharma1 1,316 1,109 19% 37% 2,489 2,153 16% 35%
Global Pharma 1,204 1,029 17% 33% 2,267 2,007 13% 32%
India Consumer Products 112 81 39% 3% 222 145 53% 3%
Healthcare Insight and Analytics 333 292 14% 9% 652 570 14% 9%
Others - 11 - - - 34 - -
Total 3,604 3,144 15% 100% 7,110 6,047 18% 100%
Notes:
1. Pharma revenue unless specified includes revenue from Global Pharma Services, Global Pharma Products, and India Consumer Product
2. Foreign Currency denominated revenue in Q2 FY2020 was INR 1,398 Crores (39% of total revenue) and in H1 FY2020 was INR 2,671 Crores (38% of the total revenue)
Consolidated Profit & Loss (In INR Crores or as stated)
Quarter II Ended Half Year Ended

Particulars
30-Sep-19 30-Sep-18 % Change 30-Sep-19 30-Sep-18 % Change
Net Sales 3,604 3,144 15% 7,110 6,047 18%
Non-operating other income 62 56 11% 130 125 4%
Total income 3,666 3,200 15% 7,239 6,171 17%
Other Operating Expenses 1,349 1,491 -10% 2,750 2,921 -6%
OPBIDTA 2,317 1,709 36% 4,489 3,250 38%
Interest Expenses 1,418 1,016 40% 2,827 1,925 47%
Depreciation 166 123 35% 325 252 29%
Profit before tax & exceptional items 733 570 29% 1,338 1,073 25%
Exceptional items (Expenses)/Income (14) - - (25) (452) -
Income tax
Current Tax and Deferred Tax 260 163 60% 477 344 39%
Profit after tax (before MI & Prior Period items) 459 407 13% 835 277 201%
Minority interest - - - -
Share of Associates1 96 73 31% 169 134 26%
Net Profit after Tax 555 480 15% 1,004 411 145%
Net Profit Margin % 15% 15% 14% 7%
Net Profit (excluding Exceptional item) 569 480 18% 1,029 863 19%
Net Profit Margin %2 16% 15% 14% 14%
EPS (Rs./share) 27.90 24.23 15% 50.59 20.76 144%
Normalised EPS (Rs./share)2 28.61 24.23 18% 51.87 43.52 19%
Notes:
1. Income under share of associates primarily includes our share of profits at Shriram Capital and profit under JV with Allergan, as per the new accounting standards.
2. Net Profit excludes Exceptional gain/loss for the period
Consolidated Balance Sheet (In INR Crores)

Particulars 30 Sept 2019
Equity Share Capital 40
Other Equity 26,615
Non Controlling Interests 8
Borrowings (Current & Non Current) 52,514
Deferred Tax Liabilities (Net) 26
Other Liabilities 2,477
Provisions 176
Total 81,856
PPE, Intangibles (Under Development), CWIP 6,121
Goodwill on Consolidation 6,070
Financial Assets
Investment 18,625
Others 32,055
Other Non Current Assets 682
Deferred Tax Asset (Net) 3,990
Current Assets
Inventories 996
Trade receivable 1,141
Cash & Cash Equivalents & Other Bank balances 3,551
Other Financial & Non Financial Assets 8,625
Total 81,856
Note : 1) The above numbers have been regrouped from IND AS Financial Statements for Presentation purposes only
Appendix
Stage-wise loan book and provisioning
Loan Book as on Sep 30, 2019
Loan Book
Category % of Loan Book
(INR Crores)
Stage 1 52,107 98.2%
Stage 2 465 0.9%
Stage 3 484 0.9%
Total Loan Book 53,055 100%
Gross NPA: 0.9% Provision: 939 Cr. Provision %: 1.8%
Note: Stage 1 - Loans which are less than or equal to 30 days past due (dpd); Stage 2 – Loans which are 31-90 dpd; and Stage 3 – Loans which are 90+ dpd
Dial-in details for Q2 FY2020 Earnings Conference Call

Event Location & Time Telephone Number
Conference call on
+91 22 6280 1264 / +91 22 7115 8165 (Primary Number)
22nd Oct 2019
India – 6:00 PM IST +91 70456 71221 (Local Number)
1800 120 1221 / 1800 266 1221 (Toll free number)
USA – 8:30 AM (Eastern Time – New York) Toll free number: 18667462133
UK – 1:30 PM (London Time) Toll free number: 08081011573
Singapore – 8:30 PM (Singapore Time) Toll free number: 8001012045
Hong Kong – 8:30 PM (Hong Kong Time) Toll free number: 800964448
For online registration https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=98821&linkSecurityString=2d

b9bd9f
For Investors :
Hitesh Dhaddha
Email : hitesh.dhaddha@piramal.com
Phone : +91 22 3046 6306

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Piramal Enterprises Limited – Q2 & H1 FY2020 Results Presentation

Piramal Enterprises Limited

Key Financial Highlights

INR 3,604 Crores INR 733 Crores INR 569 Crores

INR 7,110 Crores INR 1,338 Crores INR 1,029 Crores

Operational highlights for the quarter

Financial Services Overall Pharma Housing Finance

Consumer Products Quality & Compliance Healthcare Insights & Analytics

Successfully cleared 11 regulatory

Delivering robust growth - track record (In INR Crores)

Total Revenues1 Net Profit1,2

Net Profits Net Profit Margin %

Superior revenue growth across business segments

Revenues: H1 FY2020 vs. H1 FY2019 Revenues: Q2 FY2020 vs. Q2 FY2019

Total Revenue 18%

Financial Services 21%

HIA 14% HIA 14%

Net worth & Revenue Split

Pharma & DRG 1 DRG Pharma

Well-capitalized businesses with a diversified revenue mix

Performance trend in Financial Services

Consistent performance trend in Pharma

Pharma Performance • Growth: PEL’s H1 Pharma revenue has grown at a CAGR of

• Profitability: Global Pharma (accounts for 91% of Pharma

• Quality & Compliance: Since FY2011, PEL has successfully

■ ~INR 7,900 Crores of disbursements and ~INR 11,800 Crores of

■ Robust asset quality:

Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19

Loan book diversification

Wholesale Residential RE Wholesale Commercial RE CFG & ECL Retail

Merely 48% of the loan book is towards wholesale residential RE,

Repayments and developer sales

Increasing share of retail loans

Share of retail housing loans in overall loan book

Share of retail loans to increased to 12% as of Sep-2019 compared to 4% a year ago

GNPA ratio and provisioning

Gross NPA Ratio

GNPA ratio below 1% Conservative provisioning Provision coverage

0.9% 0.9% 0.9%

Factors enabling healthy asset quality

100% deals based on conservative ~66% of wholesale RE exposure towards

Continue to further diversify funding mix

− ~INR 8,400 Crores raised via bank term-loans

Significant reduction in exposure to CPs

− CPs outstanding with Mutual Funds

■ Reduction of ~INR 7,900 Crores in CPs during

Note: (1) Overall CP borrowings

up to 14d up to 1m up to 2m up to 3m up to 6m up to 1 yr up to 3 yrs up to 5 yrs > 5 yrs

Positive gap across all maturity buckets

Note: Data for PCHFL

10% 5% 9% 6% 12% 7% 11% 9%

67% 71% 69% 69%

• Share of bank borrowings increased from 49% as of Sep-2018 to 69% as of Sep-2019

Alternative Assets Under Management

Alternative Assets Under Management

Sep-2017 Sep-2018 Sep-2019

Note: (1) Represents total investment size along with co-investor

3,968 Total Loan Book size INR 53,055 Cr.

Average Yield on Loans 14%

Average Cost of Borrowings 11%

Glycopyrrolate # In select markets Controlled substances Developed in-house