Piramal Healthcare Limited

Investor Presentation April 2012

Agenda
Overview of Piramal Healthcare Pharma Solutions Critical Care Consumer Products Business Life Sciences Financial Services Special investments
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Piramal Healthcare an overview:

Select Financials:
Market Cap: Debt: EV: Rs. 8,100 crs Rs. 1,200 crs Rs. 9,300 crs Cash receivable from Abbott: Rs. 4,000 crs Book Value of investment in Vodafone: Rs. 5,863 crs 9MFY12 PAT: Rs. 153 crs

9MFY12 Sales: Rs. 1,664 crs

High Standards of Corporate Governance: Board of Directors:

Independent Member 1 2 3 4 5 6 Keki Dadiseth N Vaghul Deepak Satwalekar S Ramadorai Dr. R. A. Mashelkar Prof. Govardhan Mehta Particulars Ex-Director, Unilever Plc. & former Chairman, Hindustan Lever Ltd. International advisor to Goldman Sachs Former Chairman, ICICI Bank Limited, Director of Mahindra & Mahindra, Wipro Limited Former CEO & Managing Director HDFC Standard Life Insurance Co. Ltd Director of Infosys and Franklin Templeton Asset Management (India). Former CEO, Tata Consultancy Services Limited (TCS) An eminent scientist, Former Director General of CSIR, Former Member of Scientific Advisory Council to the Prime Minister Internationally acclaimed researcher in organic chemistry, Ex-Director of Indian Institute of Sciences

Piramal Healthcare an overview:

Piramal Healthcare

Pharma Business

Financial Services Business

Pharma Solutions
Partners with MNC pharma cos to service their mfg & development needs Sales Rs. 10.2 bn

Critical Care
Sells anesthetic products to hospitals globally

OTC

Life Sciences
Works in 4 TA: Oncology, Diabetes, Inflammation Infectious Diseases Has a pipeline of 16 compounds with 8 in clinical trials Received approval for cartilage repair gel BST-Cargel

NBFC
NBFC focused on lending to Real estate sector Current book of Rs. 1.3 billion

IndiaReit
A Real Estate Investment Trust with domestic and offshore fund Total AUM Rs. 38 billion
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Sells OTC Products in India

Sales Rs. 3.9 bn

Sales Rs. 1.9bn

Pharma Solutions

Market Characteristics

Global Outsourcing market estimated to be USD 32 billion, growing at 12% Market share of India extremely low Lower costs and high quality manufacturing skill presents compelling Cost pressures on big pharma due to patent expiries leading to

rationale to shift manufacturing to India

opportunities for Indian CMOs

Global Outsourcing Market Size
70 60 50 40 30 20 10 0 Year 2011
Source: Business Insights 2012

India CMOs Size

6 5
U SD B n

64.0

5.3

U SD B n

4 3 2 1 0 1.8

31.9

Year 2017

Year 2011

Year 2017

A full-service CMO across the drug life-cycle

Medicinal Chemistry Early Phase Custom Synthesis and Formulations Development CLINICAL DEVELOPMENT Discovery Research Pre-clinical Pre-clinical Dev. Dev. API Forms Phase I API Phase IIa Phase IIb Phase III API Formulations development API Torcan (niche APIs only) Morpeth, Digwal, Ennore Formulations Morpeth Pithampur Growth 43.4% 74.8% 12.3% 7 Launch Full scale supplies

Clinical Trials Formulations Medicinal & Synthetic Chemistry Services India Ahmedabad API Canada Torcan UK Morpeth, Morpeth India Ennore Formulations UK Morpeth India - Ahmedabad API

Canada - Torcan UK Morpeth, India Ennore, Formulations UK Morpeth India Ahmedabad 9M FY2012 963 585 378

Sales break-up (Rs. In crores) Pharma Solutions From assets in India From assets outside India

Pharma Solutions Global Footprint

CANADA
Toronto API development & manufacturing

UNITED KINGDOM
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 Formulation development Chennai API development & manufacturing Hyderabad API manufacturing

CHINA
Shanghai Sourcing Office

Ahmedabad Drug Discovery Services Formulations Development Clinical Trial manufacturing Pithampur Commercial formulation manufacturing 8

Critical Care

Critical Care - expanding product portfolio and enhancing geographic reach

Geographies /Products Halothane Isoflurane Enflurane Sevoflurane Desflurane Propofol
US EU RoW US EU RoW US EU RoW

2006
Addressable Market Opportunity $ Million

2011

2016

100

550

1,800
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Critical Care Infrastructure in place for sustained rapid growth

84 Distributors 32 Sales Field Force 38 Managers

Products

Products Manufactured

Approvals/Certific ation USFDA, AFSSAPS US FDA, WHO, UKMHRA, MCC WHO USFDA

Bethlehem Digwal

Ambernath (BSV) Baddi (Abbott)

(Rs. In crores) Critical Care Sales

9M FY2012 281

Growth 3.3%

Desflurane

Sevoflurane

Enflurane

Isoflurane

Halothane

Propofol

Haemaccel

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OTC Business

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OTC Strong Track Record

Moved from no. 40 in 2008 to top-10 in 2011 Sales have grown by 29% CAGR in last 3 years (9M FY12 sales: Rs. 109 crores) Field force expansion to improve distribution to 4 lakh chemists and cover all 485 1 lakh+ towns in India Lacto Calamine won coveted 2010 REBRAND 100 Winner Successful Rx to OTC transformation for Polycrol, Tetmosol and Supractiv

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Life Sciences

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R&D: To launch a molecule globally

16 products under development in various stages Our lead molecule for P276 is currently undergoing Phase I/II clinical trials for multiple indication of cancer: Head & Neck, Mantle Cell Lymphoma, Malignant Melanoma, Pancreatic and Triple Negative Breast Cancer; Potential Market size: $ 10 billion; Earliest expected launch: FY2014 Received the European CE mark approval for the innovative bioorthopaedic product for cartilage repair - BSTCarGel . Acquired molecular imaging development portfolio of Bayer pharma which includes rights to Florbetaben a final stage Phase III clinical trial molecule. Explore out-licensing opportunity for P1736, a Diabetes molecule which is currently in Phase II after the completion of this trial

Annual spend : Rs. 230 Rs. 250 crores

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BST-CarGel: An overview
A novel bioscaffold for advanced cartilage regeneration that has clinically demonstrated consistently higher quality cartilage repair An EU class III medical device, it is a liquid scaffold which, combined with the patients whole blood, is then implanted into a debrided cartilage lesion prepared with bone marrow access Received European CE mark regulatory approval in April 2012 Plans to commercially launch in the fourth quarter of the 2012 calendar year Filed for regulatory approval to sell in Canada and will soon file in India
MRI of patient treated with CarGel
Damaged Cartilage Before Treatment Cartilage After Treatment

Current European Market Potential The CE mark enables us to access a potential $ 200 mn market in Europe. While we can sell in all EU countries, the largest markets in Europe for BST-CarGel are: UK, Germany, France, Spain, and Italy

Piramal Imaging An overview

PHL has signed agreement to acquire leading portfolio of molecular imaging tracers from Bayer AG forming subsidiary Piramal Imaging Lead compound Florbetaben - final stage Phase III molecule Reliably detects Beta-Amyloid in the brain, which is the pathological hallmark of disease in probable Alzheimer's disease patients Potential tool to aid in diagnosis and assessment of Alzheimers disease Positive Phase III results to be presented April 25 at American Academy of Neurology Annual Meeting Early diagnosis can both improve patients quality of life and reduce healthcare costs Potential Market size: $ 1.5 billion Earliest regulatory filing: 2012 Other assets include strong pipeline of PET imaging tracers in CNS, Oncology, and Cardiovascular diseases Core members of Bayers R&D team will join Piramal Imaging leadership team

Financial Services

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Vision to be specialized financial services company

PHL Capital

IndiaReit
Advisor to Offshore and Domestic Real estate funds AUM: Rs. 3,800 crores

PHL Finance
NBFC lending to Real Estate, Promoter Financing, Hospitals, Educational Institutes etc. Team in place for Real Estate Funding, being set up for other segments Operations commenced; current loan book of Rs. 131 crores

Infra NBFC
Regulatory approvals awaited

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Indiareit - Executive Summary

Proven fund management expertise,
Best positioned to benefit from emerging Indian real estate
Consistent fund raising Proven & consistent investment strategy Strong team with comprehensive investment experience;

supplemented with key differentiators

successful exits across vehicles

Realized exits across funds Exits commenced since October 2008 Valuations in sync with guidance and exit delivery Estimate 2.22x pre-tax money multiple on valued portfolio (March 11) Ability to profitably deploy large pools of capital; Over USD 650Mn in 4 years First to declare independent valuations First to commence exits in investee projects First to round trip investments across all fund offerings First to manage third party portfolio

History of firsts in the Indian market

On track execution and delivery

Work commenced on majority projects No partners litigations No land issues No credit default Visible cash flows Work linked to off-take

Comprehensive Experience 5 Top Tier 1 cities 8 Local partners 23 Projects 53.7m sq ft of Saleable area currently under development 20
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IndiaReit: Build on strong Brand Equity

Current fund raising plans:
I Offshore funds Offshore development fund Rental yield fund II Domestic fund Slum redevelopment fund Rs. 500 crores Size $ 500 million $ 125 million

PHLs commitment to these new funds will be 8 10 percent IndiaReit to look for special mandates like the investment management mandate that it has from Trinity Capital PLC under which it manages US $ 200 mn of assets Investment in IndiaReit to generate ROE of 18-20% from 2014 onwards
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PHL Finance: Way Forward

Led by Mr. A. K. Purwar, ex-Chairman of State Bank of India Strong systems and process in place aimed at building a book of quality asset with Gross NPAs less has 2% and Net NPAs less than 1% To have loan book of Rs. 5,000 crores by FY2016 PHLs commitment to be Rs. 750 crores (One time Cash infusion) Investment in this NBFC to generate ROE of 15-16% by FY2016

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Special Investments

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Special Investments
PHL to invest surplus funds in investments that give:

o o o o o o

minority equity stake global companies in India high growth sectors short to medium term Minimal risk ROE: 17-20% p.a.

PHL has increased its stake in Vodafone Essar to 11% with the total investment of $ 1.2 billion The partnership underscores trust placed by global companies in Piramal values, ethics, corporate governance and good reputation

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Thank you

For further details contact: Sagar Gokani sagar.gokani@piramal.com Prasad Mhatre prasad.mhatre@piramal.com

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Back-up slides

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Profit & Loss Account Consolidated Continuing Businesses Q3 FY2012

Rs. Crores
Period ended - Consolidated Total operating income NCE R&D Expenses Other Operating Expenses OPBIDTA OPM % Interest Depreciation Profit before tax Income tax Profit after tax EPS (Rs.) Q3 Ended 31-Dec-11 31-Dec-10 617.6 94.0 486.9 36.6 5.9% 22.1 40.1 (25.6) (37.8) 9.7 0.5 534.9 420.7 114.1 21.3% 12.9 24.0 77.2 16.9 60.3 2.9 % Gr 15.5% 15.7% -67.9% 71.3% 66.9% 9 Months Ended 31-Dec-11 31-Dec-10 % Gr 1,664.3 94.0 1,249.3 320.9 19.3% 52.4 95.6 172.9 16.7 152.6 9.0 1,319.6 1,902.7 115.4 8.7% 71.7 69.9 (26.1) 3,662.5 12,535.2 599.8 26.1% -34.3% 178.0% -26.9% 36.9% -

Note: Foreign exchange gain (mainly on Abbott receivables) included in OPBIDTA of Q3 FY2012 and 9MFY2012 of Rs. 28.0 crores and 206.9 crores

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Balance Sheet Consolidated Q3 FY2012

Rs. Crores

Period ended- Consolidated Equity capital Reserves & Surplus Networth Minority Interest Deferred tax liability (Net) Loan funds Total Net fixed assets Investments Net current assets Inventories Sundry debtors Other current assets Current liabilities Total

As at 31-Dec-11 34.5 11,541.8 11,576.4 8.9 60.1 1,172.9 12,818.2 1,971.9 3,877.0 6,969.4 495.9 396.8 7,404.1 1,327.3 12,818.2

As at 30-Sep-11 33.4 11,879.2 11,912.7 7.7 46.1 1,088.9 13,055.4 1,717.9 3,917.5 7,420.0 455.6 351.9 7,546.2 933.7 13,055.4
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1. Other current assets include amount of Rs. 6,373 crores as receivable from Abbott towards sale of Healthcare Solutions business