Slides
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COLOR PALETTE Q3 & 9M FY2025 Results January 2025
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COLOR PALETTE Disclaimer 2 This presentation and the accompanying slides (the “Presentation”), which have been prepared by Piramal Pharma Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities of the Company in any jurisdiction, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. Except for the historical information contained herein, statements in this Presentation and any subsequent discussions, which include words or phrases such as 'will', 'aim', 'will likely result', 'would', 'believe', 'may', 'expect', 'will continue', 'anticipate', 'estimate', 'intend', 'plan', 'contemplate', 'seek to', 'future', 'objective', 'goal', 'likely', 'project', 'on-course', 'should', 'potential', 'pipeline', 'guidance', 'will pursue' 'trend line' and similar expressions or variations of such expressions may constitute 'forward-looking statements'. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to Company’s ability to successfully implement its strategy, the Company’s growth and expansion plans, the performance of the Indian economy and of the economies of various international markets, obtain regulatory approvals, provisioning policies, technological changes, investment and business income, income or cash flow projections, the performance of the industry in India and world-wide, exposure to market risks as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially from results expressed in or implied by this Presentation. Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. Given these uncertainties and other factors, viewers of this Presentation are cautioned not to place undue reliance on these forward-looking statements. The information in this Presentation does not constitute financial advice (nor investment, tax, accounting or legal advice) and does not take into account an investor’s individual investment objectives, including the merits and risks involved in an investment in the Company or its securities, or an investor’s financial situation, tax position or particular needs. Past performance information in this Presentation should not be relied upon as an indication of (and is not an indicator of) future performance. This Presentation is not a prospectus, disclosure document, a statement in lieu of a prospectus, an offering circular, an invitation or an advertisement or an offer document under the Companies Act, 2013, together with the rules and regulations made thereunder, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, or any other applicable law in India. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation, and nothing in this Presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. The Presentation has not been independently verified and any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. The contents of this Presentation are strictly confidential and may not be copied or disseminated, reproduced, re-circulated, published, advertised or redistributed, in whole or in part, to any other person or in any media, website or otherwise in any manner without the Company’s written consent. Note: Figures in previous periods might have been regrouped or restated, wherever necessary to make them comparable to current period. For the ease of presentation, certain financial information herein has been rounded off to one decimal place or two decimal places or whole numbers, as the case may be.
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COLOR PALETTE 815 977 15% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % 500 600 700 800 900 100 0 110 0 120 0 9MFY24 9MFY25 Key Performance Highlights of Q3FY25 / 9MFY25 3 EBITDA and EBITDA Margins Revenue from Operation 1,959 2,204 Q3FY24 Q3FY25 330 350 17% 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % -50 50 150 250 350 450 550 650 750 850 Q3FY24 Q3FY25 13% 14% 9MFY25 Revenue Break-up 57%30% 13% CDMO Complex Hospital Generics India Consumer Healthcare (In ₹ Crore) (In ₹ Crore) EBITDA Margin 5,619 6,397 9MFY24 9MFY25
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COLOR PALETTE Key Performance Highlights of Q3FY25 / 9MFY25 4 Key Highlights Revenue (In ₹ Cr) and Growth • Continued momentum in revenue from on-patent commercial manufacturing • YoY improvement in EBITDA margin driven by operating leverage and cost optimization • Converted coal-fired steam boiler at Digwal to operate on biomass briquettes - Will eliminate ~24,000 tCO2e1 GHG emissions annually, ~17% of total emissions 1,134 1,278 3,101 3,659 Q3FY24 Q3FY25 9MFY24 9MFY25 13% 18% CDMO 252 278 747 819 Q3FY24 Q3FY25 9MFY24 9MFY25 10% 10% ICH • 16 new products and 23 new SKUs launched in 9MFY25 • Power brands delivered a healthy YoY growth of 21% in Q3 and 19% in 9MFY25 • ~40% YoY growth in E-commerce sales in Q3FY25. Present on 20+ e-commerce platforms 576 654 1,782 1,928 Q3FY24 Q3FY25 9MFY24 9MFY25 14% 8% CHG • IA2 sales in the US tracking healthy volume growth driven by order wins • Capacity expansion at Dahej and Digwal underway. Seeing MoM increase in output • Maintain our #1 Rank in the US in Sevoflurane (40%+ market share3) and in Intrathecal Baclofen (70%+ market share3) 1. Tonnes of carbon dioxide equivalent; 2. Inhalation Anesthesia; 3. As per IQVIA data
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COLOR PALETTE Business Wise Performance
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COLOR PALETTE CDMO Business 6 ❖ Robust high-teen revenue growth in 9MFY25 driven by: • Continued momentum in on-patent commercial manufacturing • Healthy demand in generic API business • Timely capacity expansions and targeted BD1 efforts driving increased customer enquires, however decision making is prolonged • Focus on superior execution, quality and sustainability, driving customer delight ❖ Continued YoY improvement in EBITDA Margin driven by: • Rising contribution from innovation2 related work and differentiated offerings • Better procurement strategies, cost optimization and operational excellence ❖ Market Outlook: • Biotech Funding – CY2024 funding improved over CY2023, enough to replenish biotech cash burn but not enough to accelerate R&D spends • Customers efforts towards supply chain diversification continues - benefits to accrue over medium to long term 1. BD – Business Development; 2. Discovery + Development + Commercial Manufacturing of products under patent Performance Highlights Revenue Growth 1,134 1,278 3,101 3,659 Q3FY24 Q3FY25 9MFY24 9MFY25 13% 18% (In ₹ Crore)
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COLOR PALETTE Maintaining our Best-in-Class Quality Track Record 360+ Regulatory Inspections with no OAI ~130 Audits Annually by Customers 5 2 4 7 5 5 3 2 3 4 4 1 8 8 10 10 21 20 24 42 26 29 35 32 32 23 13 10 14 17 26 25 27 44 29 29 35 36 36 24 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22FY23 FY24 9M FY25 US FDA Inspections Total Regulatory Inspections 60 71 116 115 140 157 167 163 141 99 148 197 172 142 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 9M FY25 ❖ Successfully cleared 45 US FDA inspections, 365 total regulatory inspections and 1,888 customer audits since FY2012 ❖ Successfully cleared 24 regulatory inspections and 142 customer audits in 9MFY25 ❖ No ‘Official Action Indicated (OAI)’ for any of our US FDA audits 7
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COLOR PALETTE A Significant Step Towards Sustainable Operations 8 Converted the coal-fired steam boiler at our Digwal facility to operate on biomass briquettes, a carbon-neutral fuel source • Will eliminate ~24,000 tCO2e GHG emissions annually, accounting for ~17% of total emissions • The shift to biomass briquettes strengthens our sustainability practices and sets a new industry standard for environmentally responsible manufacturing • Significant step toward our sustainability goal to reduce Scope 1 and 2 greenhouse gas (GHG) emissions by 42% by 2030 • Negligible increase in operating cost • Briquettes are compacted blocks of biomass materials processed and compressed under high pressure, forming a carbon-neutral, renewable fuel source • Utilizing the waste products of organic materials in the briquettes promotes circular economy principles, further enhancing sustainability • Supports SMEs and farmers By transitioning to biomass briquettes, we are significantly reducing our GHG emissions and setting new industry standards for responsible pharmaceutical manufacturing. Peter DeYoung, Chief Executive Officer, Global Pharma 16 TPH Solid Fuel Boiler Briquettes
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COLOR PALETTE Complex Hospital Generics Business 9 ❖ Inhalation Anesthesia • IA sales in the US tracking healthy volume growth driven by order wins for Sevoflurane and Isoflurane • Maintain our #1 Rank in Sevoflurane in the US with over 40%* market share • Registered good performance in emerging markets like Asia, Europe and RoW • Capacity expansion at Dahej and Digwal underway to capture opportunities in the RoW markets. Seeing month-on-month increase in production output ❖ Intrathecal Therapy – Continue to command market leading position in Baclofen in the US. Mitigo (morphine sulphate) also delivered encouraging growth during the quarter • Maintain #1 Rank in intrathecal Baclofen in the US with over 70%1 market share ❖ Building on our experience with Differentiated and Specialty Products • Investing in Differentiated and Specialty Products - 505(b)(2)’s, Complex generics, Differentiated generics, Branded products to enable long term growth ❖ Maintain EBITDA Margins – Cost optimization initiatives in the areas of sourcing, manufacturing, distribution and operational excellence, showing results Performance Highlights Revenue Growth 576 654 1,782 1,928 Q3FY24 Q3FY25 9MFY24 9MFY25 14% 8% (In ₹ Crore) 1. As per IQVIA data
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COLOR PALETTE 252 278 747 819 Q3FY24 Q3FY25 9MFY24 9MFY25 ❖ New Product launches - 16 new products and 23 new SKUs launched in 9MFY25 India Consumer Healthcare Business 10 Performance Highlights Revenue Growth 10% 10% (In ₹ Crore) ❖ E-commerce sales grew at over 40% YoY in Q3FY25, contributing 20% to ICH sales. Present on more than 20 e-commerce platforms ❖ Power Brands grew 19% YoY during 9MFY25, contributing 48% to total ICH sales • Excluding i-range (impacted by regulatory price control), growth in power brand was 26% for 9MFY25 • Growth was driven by Little’s, Polycrol and CIR ❖ Launched our new media campaign with Mrunal Thakur for Lacto Calamine
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COLOR PALETTE Investing for Profitable Growth 11 84 116 131 131 98 16% 15% 15% 13% 12% 0% 2% 4% 6% 8% 10% 12% 14% 16% - 50 100 150 200 FY21 FY22 FY23 FY24 9MFY25 Continuous Media and Trade Spends… (In ₹ Crore) % of ICH sales 194 268 370 448 396 0% 5000% 10000% 15000% 20000% 25000% 30000% 35000% 40000% 45000% FY21 FY22 FY23 FY24 9MFY25 …Fueling Growth of Power Brands… 35 40 63 51 39 - 10 20 30 40 50 60 70 FY21 FY22 FY23 FY24 9MFY25 …Underpinned by 150+ New Launches in 3 Years… Power Brands 48% Other Brands 52% …With Significant Contribution from Power Brands No. of New product and SKUs launches Power Brands- Little's, Lacto Calamine, i-range, CIR, Tetmosol, and Polycrol (In ₹ Crore) % of 9MFY25 Revenue
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COLOR PALETTE Onboarded Sai Ramana Ponugoti – CEO, ICH Business 12 Mr . Sai Ramana Ponugoti CEO, India Consumer Healthcare With over 20 years of leadership experience at Procter & Gamble (P&G), Mr. Sai Ramana Ponugoti has held senior roles across India, Asia, the Middle East, and Africa. As the Chief Sales Officer for P&G India, he has led transformative disruptions, driving significant business growth and profitability. Previously, as Country Manager for P&G Vietnam, he delivered exceptional results in a complex market environment. Mr. Ponugoti has been a champion of customer-centricity and innovation, consistently leading constructive disruptions and delivering superior business results, including successful profit transformation. He is passionate about talent development and fostering a culture of inclusion. His strategic vision and ability to build high- performing teams have been key to his success. Mr. Ponugoti holds MBA from the Indian Institute of Management, Lucknow. At Piramal Pharma, he will leverage his expertise to accelerate the growth of the health and wellness portfolio and deliver impactful solutions aligned with the company’s purpose of ‘Doing well and Doing good’.
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COLOR PALETTE Financials
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COLOR PALETTE Consolidated Financials Highlights 14 (in ₹ Cr. or as stated) Particulars Q3FY25 Q3FY24 YoY Change 9MFY25 9MFY24 YoY Change Revenue from Operations* 2,204 1,959 13% 6,397 5,619 14% CDMO 1,278 1,134 13% 3,659 3,101 18% CHG 654 576 14% 1,928 1,782 8% ICH 278 252 10% 819 747 10% EBITDA 350 330 6% 977 815 20% EBITDA Margin 16% 17% 15% 15% Share of Net Profit of Associates 17 14 22% 57 47 20% Net Profit After Tax 4 10 (64)% (62) (83) NM A steady all-round performance in 9MFY25 - Healthy revenue growth of 14% YoY accompanied by 20% YoY growth in EBIDTA driven by operating leverage and cost optimization initiatives Note: * Revenue from Operations includes foreign exchange gains/losses
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COLOR PALETTE Strategic Goals
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COLOR PALETTE Financial Aspirations for FY2030 16 Exponential Growth in PAT Enhance ROCE More than Double the Revenues US$2+ Bn Revenue Early Teens P A T Margins High Teens ROCE 2x Reduce Leverage on the Balance Sheet ~1x Net debt to EBITDA 1x Over 3x Growth in EBITDA ~25% EBITDA Margins 3x Note:- The aspirations mentioned above does not include Inorganic growth
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COLOR PALETTE US$2+ Bn Company with 25% EDITDA Margin by FY2030 17 US$1.2 Bn revenues with ~25% EBITDA margin US$200 Mn revenues with double-digit EBITDA margin CDMO CHG ICH Emerge as a fast-growing, innovation- focused integrated CDMO, leveraging our scientific excellence and our global network of end-to-end and differentiated services to bring valued solutions to our customers and their patients Become a leading critical care company by strengthening our core of inhalation anesthesia, injectable pain, and intrathecal therapies and building a growing portfolio of differentiated and specialty products for patients Establish ourselves as a significant player in the Indian consumer healthcare segment with market leading brands and extensive distribution reach Strategic Goals for FY2030 US$600 Mn revenues with 25%+ EBITDA margin
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COLOR PALETTE Key Investment Highlights 18 US$2+ Bn Global Pharma, Health & WellnessCompany by FY2030 Strong focus on sustainability and patient, customer, and consumer centricity – SBTi approved GHG reduction targets Best in class quality and compliance – 350+ successful regulatory inspections since FY2012 Strong track record of organic and inorganic expansion – 15+ M&As in last 10 years Target 25% EBITDA margins through enhanced productivity and cost optimization initiatives Globally diversified network of facilities across 3 continents, differentiated capabilities and market leading brands Presence in large multi-billion dollar size attractive industry segments with promising tailwinds Strong promoter group with over 35 years of demonstrated ability to build scalable and differentiated businesses 1 2 3 4 5 6 7
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COLOR PALETTE Dial-in details for Q3 and 9M FY25 Earnings Conference Call 19 Event Location & Time Telephone Number Conference Call on 29th January 2025 India – 05:30 PM IST +91 22 6280 1461 / +91 22 7115 8320 (Primary Number) 1 800 120 1221 (Toll free number) USA – 07:00 AM (Eastern Time – New York) Toll free number 18667462133 UK – 12:00 PM (London Time) Toll free number 08081011573 Singapore – 08:00 PM (Singapore Time) Toll free number 8001012045 Hong Kong – 08:00 PM (Hong Kong Time) Toll free number 800964448 Express Join with Diamond Pass™ Please use this link for prior registration to reduce wait time at the time of joining the call – Click Here
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For Investor Queries: Madhusudan Dalmia Investor Relations Email: madhusudan.dalmia@piramal.com Gagan Borana Investor Relations and Enterprise Risk Management Email: gagan.borana@piramal.com