UPLNSE9 May 2022

UPL Limited has informed the Exchange about Investor Presentation

UPL Limited

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9th May 2022

BSE Limited Mumbai

National Stock Exchange of India Ltd. Mumbai

SCRIP CODE – 512070

SYMBOL: UPL

Sub.: Investor presentation

Dear Sir/ Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the investor presentation for the year ended 31st March 2022.

We request you to take the above information on records.

Thanking you,

Yours faithfully, For UPL Limited

Sandeep Deshmukh Company Secretary and Compliance Officer (ACS-10946)

Capital Markets Day 2022

From reimagining sustainability to real world impact

May 2022

Key Performance and Sustainability Highlights 1. Opening Statements in FY22

Jai Shroff, Group CEO

We had another record year

Robust performance on all counts

Continued to outperform guidance in FY22 led by the resilience of the business model

FY22 Guidance

Actual Performance in FY22

Revenue Growth

EBITDA Growth

Net Debt to EBITDA

ROCE

7% - 10%

12% - 15%

<2x

19%

1.86x

All regions except Europe delivered healthy double-digit growth

Better pricing coupled with efficient supply chain management and benefit of backward integration

Achieved target led by improved profitability

15.6%

ROCE expansion by 170 bps over FY21

1. Opening Statements 3 key pillars for sustainable growth

Jai Shroff, Group CEO

Key pillars for sustainable growth

Key Pillars

Target Outcome

Superior growth of high-margin differentiated and sustainable solutions

Accelerated penetration in select markets, crops and segments

Competitive edge in Supply Chain Management enables us to be cost competitive with reliability of supply

FY17

14%

86%

Crop Protection Portfolio Mix Evolution1 FY22

29%

71%

FY27F

50%

Post Patent

Differentiated & Sustainable

Drive ‘2x - 3x of Market Growth’ from FY22 to FY27F

UPL’s share in global crop protection market2

FY17

~4%

FY22

~8%

FY27F

~9% – 11%

Total Raw Material Sourcing Mix Evolution

FY17

29%

34%

37%

FY22

31%

38%

31%

FY27F

Further diversify sourcing mix to enhance reliability and cost competitiveness

1Sustainable Solutions include NPP BioSolutions and Soil & Seed Health 2Market Share taken from IHS Markit considered for CY16 and CY21, UPL Internal Estimates for FY27

India

Imports - China

Imports - Others

OpenAg brings solutions to farmers from ‘Soil-to-Sale’

United by OpenAg purpose

Reimagining sustainability with an open network to create sustainable growth for all - no limits, no borders.

Specialist focus, connected impact

Sustainability reimagined in innovation & food security Our global crop science solutions business is driving new and sustainable ways of innovating and partnering to address growers’ pain points.

Sustainability reimagined for farmers Our global AgTech platform is delivering complete solutions for growers: Services. Technologies. Decarbonisation. Connectivity. For sustainable outcomes and the resilience they need to grow.

Sustainability reimagined for growing Targeted sustainable bio solutions through the growth cycle, pre- and post harvest. Protecting crops, improving soil health & plant resilience, and increasing yield.

Sustainability reimagined for seeds & plant development Smart seed development - combining the most advanced techniques in conventional plant breeding with biotechnology to develop high performance seeds.

Sustainability reimagined near & post harvest Continuous innovation for smarter and safer technologies to protect freshness, flavour and nutritional value, while minimising food waste throughout the food system.

‘nurture.farm is promoting Sustainability in Agriculture Initiatives executed on Paddy crop with a focus on Carbon

Crop Residue Management

AWD Practice

An initiative to end stubble burning in India through use of bio enzymes coupled with farm mechanization & digitization

An initiative to reduce methane emissions by 50—80% through implementation of alternate wet and dry practice in paddy fields

First to list & forward sell carbon credits from agriculture

425,000 Acres+

20,000+ Credits

Collaborating with farmers to reduce 1 Gigaton of CO2 from the atmosphere by 2040

Together with our partners, we are reducing our emissions, and through carbon capture projects, helping farmers to participate in carbon markets.

1. Opening Statements FY22 Performance Overview

Mike Frank, President & COO, UPL

Anand Vora, Global CFO

FY22 Key Highlights

1. 19% revenue growth, driven by a mix of volume +8% and price +10%, and +1% FX

2. EBITDA margins were comparable to prior year, despite inflationary environment

3. Launch of NPP BioSolutions with dedicated team and enhanced capabilities

4. Investments in expansion of nurture.farm, onboarding > 1.5 million farmers

5. Advanta Seeds revenue grew by 24%; EBITDA margins at ~26%

6. Second tranche of USD700 Million sustainability linked loan (SSL) with a reduction of interest cost by 35bps

and an opportunity for a further reduction of 5bps on achievement of sustainability indicators

7. Multiple sustainability related recognitions including Asian Sustainability Leadership Award and #1 amongst

peers by Sustainalytics for a second year

8. Joined the Climate Pledge and launched the Gigaton Carbon Goal

9. Long term collaboration with Chr. Hansen on microbial biosolutions and Bunge investment in Sinagro to

enhance ability to serve growers in Brazil, among others

Q4 FY22 | Improved pricing led strong growth

Particulars (in INR B)

Q4 FY22A

Q4 FY21A

B/(W) LY

Revenue Variance vs PY

Revenue

158.6

Contribution Margin %

SG&A

EBITDA

In % Revenue

39%

26.4

35.9

23%

128.0

37%

19.0

28.4

Dummy commentary 22%

24%

231bps

-39%

26%

46bps

19%

Volume

Price

Exchange

Mike

24% higher revenue vs. LY: Herbicide portfolio a major contributor in growth, through improved price realization

231 bps higher contribution margin vs LY:

Significant improvement in CM% in Q4FY22 driven by improved pricing, product mix

~26% growth in EBITDA vs. LY: Growth driven by higher revenue and contribution, resulting in EBITDA margin improvement by 46bps vs. LY

Q4 FY22 Regional Revenue Highlights | Improved pricing led growth

Latin America: 21%

North America: 38%

Europe: 2%

Rest of World: 25%

India : 63%

(INR B)

57.6

47.7

35.1

25.4

• Brazil driven growth, primarily in herbicides and insecticides

•Herbicides led by glufosinate products; strong growth in insecticides vs. LY

•Better commodity prices, tight supply and favorable channel stock further supported growth

25.8

26.3

FY21

FY22

20.6

25.8

8.5

13.8

• Growth led

Click to add text

by fungicides, herbicides and NPP Biosolutions, despite significant losses due to product bans and Russia-Ukraine conflict since Feb

•Growth driven by fungicides, herbicides and insecticides, despite supply chain constraints

•Revenue increase driven by herbicides and new product launches including Shenzi®SC, Triskele® and Trishuk®

•Overall favorable commodity prices for cash crops, pulses, oilseeds

Mike

FY21

B/(W) LY

Revenue Variance

FY22 | Strong revenue and EBITDA growth

Particulars (in INR B)

Revenue

Contribution Margin %

SG&A

EBITDA

EBITDA Margin %

FY22

462.4

41%

88.4

101.7

22%

386.9

41%

71.5

85.6

22%

19%

51bps

-24%

19%

-14bps

19% higher revenue vs. LY: Herbicide portfolio across regions was a major contributor in growth, through improved price realization 51 bps higher contribution margin vs LY: Improved pricing more than offset increased inputs costs, leading to slightly higher contribution margin ~19% growth in EBITDA vs. LY: Growth driven by higher revenue and contribution; however, higher SG&A resulted in EBITDA margin dip by 14bps vs. LY

10%

Volume

Price

Exchange

Crop Protection Portfolio Evolution

• Differentiated and Sustainable Products revenue

grew 19%, maintaining revenue share versus FY21

• ~70% of the growth in Differentiated & Sustainable Solutions volume driven

• Major pricing actions in Post Patent, representing

~90% of its growth

FY22 Regional Revenue Highlights | Double digit growth in all regions with the exception of Europe

Latin America: 21%

North America: 37%

Europe: 7%

Rest of World: 11%

India : 22%

(INR B)

148.6

180.4

78.1

56.9

64.2

68.9

70.4

78.1

56.9

46.8

•Brazil driven growth primarily in herbicides and insecticides

FY21

FY22

• Growth in fungicides, herbicides and NPP Biosolutions, despite significant losses due to product bans and Russia-Ukraine conflict since Feb

•Herbicides led by glufosinate products; strong growth in insecticides vs. LY

•Better commodity prices, tight supply and favorable channel stock supported growth

•Growth across fungicides, herbicides and insecticides, despite supply chain constraints

•Revenue increase driven by herbicides and new product launches, including Shenzi®, Triskele® and Trishuk®

•Robust growth despite adverse market conditions

•Overall favorable commodity prices for cash crops, pulses, oilseeds

Net Profit grew by 29% YoY in Q4FY22, and 26% YoY in FY22

Particulars

Q4FY22

Q4FY21

Change %

Total Revenue from operation

15,860

12,797

Contribution Profit

EBITDA

EBIT

Other Income / (Loss)

Finance Cost

PBT

Tax

PAT

PAT after Associate Income, Minority Interest and Exceptional Items

6,236

3,591

2,949

(95)

800

2,055

266

1,789

1,379

4,736

2,839

2,264

(139)

421

1,704

320

1,384

1,065

24%

32%

26%

30%

21%

29%

FY22

46,240

19,002

10,165

7,806

(355)

2,295

5,157

530

4,627

3,626

FY21

38,694

15,704

8,559

6,386

2,060

4,377

685

3,692

2,872

₹ crore

Change %

19%

21%

19%

22%

18%

25%

26%

▪ Strong EBITDA growth drove ~29% increase in net profit in Q4 FY22 and 26% growth in full-year FY22 ▪

In Q4 FY22, finance cost increased due to 1) Mark to market losses of INR 172 crore in respect of advance sales orders as compared to net exchange gain of INR 121 crore in Q4 FY21, and 2) higher cost of non-recourse factoring

Higher contribution margins drove better EBITDA Margins (higher by 46 bps) in Q4 FY22

EBITDA Variance Bridge – Q4FY22 vs. Q4FY21

All figures are in INR Crore

2,688

375

1,389

175

22%

2,839

748

23%

3,591

Q4FY21

Volume

Price & Currency

Production Cost

Freight

SG&A

Q4FY22

• Higher realizations and efficient supply chain management helped drive ~231 bps expansion in contribution margins (39.3% in Q4FY22 vs. 37.0% in

Q4FY21)

•

SG&A as % of sales increased by ~185 bps YoY to 16.7% in Q4 FY22 due to investments in NPP, digital platform - nurture.farm and other initiatives focused on moving closer to the farmers

Better pricing, healthy volume growth aided in keeping EBITDA margins intact

EBITDA Variance Bridge – FY22 vs. FY21

4,353

22%

3,192

8,559

3,608

639

1,692

All figures are in INR Crore

22%

10,165

FY21

Volume

Price & Currency

Production Cost

Freight

SG&A

FY22

•

Strong contribution margin helped offset the impact of higher investments in NPP, digital and other initiatives focused on moving closer to the farmers and maintain flat EBITDA margins

FY22 Working Capital Analysis

FY22: 13,078 Cr

FY21: 9,422 Cr

FY22: 14,287 Cr

FY21: 11,874 Cr

FY22: 18,733 Cr

FY21: 13,789 Cr

104

114

113

149

131

Inventory

Receivables

Payables

Net Working Capital

FY2022

FY2021

Note: As a risk management measure, the company sells its receivables on non-recourse basis to banks. Receivables sold as of 31st March 2022 were 12,099 crore (31st March 2021: 7,623 crore)

FY22 Net Debt/EBITDA at <2x

Net Debt Position - FY22

Cash Generated by Business in FY22

Utilization of Funds in FY22

All figures are in INR Crore and US$ Mn

Particulars

FY22

FY21

Change

Gross Debt

Cash and cash equivalent1

Net Debt

Net Debt ‘Adjusted for Currency Impact’

Net Debt to EBITDA

25,866 $3,416

23,774 $3,252

6,960 $919

4,853 $664

+2,092 +$164

+2,107 +$255

18,906 $2,497

18,921 $2,588

-15 -$91

18,2541 18,921

-667

1.86x

2.21x

1Excluding impact of INR Depreciation in FY22 (from INR 73.11 on 31 Mar’21 to INR 75.72 on 31 Mar’22). INR Depreciation impact on net debt was INR 652 crore

1,124

685

3,031

All figures are in INR Crore

9,267

2,703

Operating cashflow before WC

Incremental WC

Others

Tax & Finance cost paid

Cash generated by business

Capex and other investments

Dividends

Surplus post fund utilization

4,426

922

801

• Net Debt to EBITDA down by 16% to 1.86x.

• Reduced net debt by US$ 91 Mn in FY22 to US$ 2,497 Mn (in USD terms) – flat in INR terms due to INR depreciation

• Operating Cashflow before WC grew 14% YoY to INR 9,267 crore in FY22. Higher WC is in-line with the strong revenue growth and higher inventory costs. Despite

higher working capital, the business generated healthy cash flow of ~INR 4,426 crore

• Given the highly dynamic environment, where we see strong demand tailwinds but also inflationary pressures and supply chain disruptions, ‘we prudently invested

towards ensuring sustainable growth’. Further, we also paid higher dividends to reward shareholders.

Note: USD/INR Exchange rates - FY22 (31st March’22): INR 75.72, FY21 (31st March’21): INR 73.11. 1Cash and Cash Equivalents include INR 840 crore of liquid investments

1. Opening Statements FY23 Guidance

Mike Frank, President and COO, UPL

FY23 Guidance

+10%+

Revenue Growth

+12-15%

+125-200 bps

EBITDA Growth

Return on Capital

Healthy growth supported by favorable market conditions:

• Strong commodity prices, with corn, soy and wheat being major beneficiaries • Oil volatility persists with high prices generating inflation for all derivatives • Increased demand for biofuels and natural fiber • High costs and reduced availability of fertilizers impacting yields which will favor

the use of biosolutions and conventional crop protection

Confident of Continuing Our Strong Performance in FY23

Superior growth of high-margin differentiated & sustainable solutions

Accelerated penetration in select markets, crops and segments

Supply Chain Competitive Edge

• Impactful New Product Launches

including Evolution®, PreviewTM 2.1 SC and Triskele® will drive growth in Differentiated Solutions (~80 launches in FY22 & FY23)

• Accelerated NPP BioSolutions growth,

helped by continued traction in pronutiva and establishment of dedicated NPP teams

• Double digit growth expected

in NAM, India and ROW

• High single digit growth in LATAM

and Europe

•

Improved operating margins supported by efficient cost and supply chain management

• >10% reduction in inventory days through implementation of new digitally enabled supply chain planning processes

New Product Launches – Differentiated Solutions

Preview 2.1 SC Superior residual control of the most troublesome weeds

Evolution 3-way protection against Asian Soybean Rust

Triskele First 3-way foliar herbicide approved in India

• Offers pre-emergent control as well as residual control of later-germinating target weeds in pre-emergent and fall burndown applications

• Delivers exceptional crop safety when

• Offers multi-site activity at various points

in the metabolism of fungi. This technology helps to reduce the possibility of diseases that resist pesticides.

compared to other pre-emergence products

• Yields an additional 3+ bags/Ha of Soybeans

• Most efficacious complete solution for controlling grasses, broad leaves and sedges on the market

• Unique 3-way WDG offer in India with excellent handling and crop safety

TAM: ~$325m1

Patents: Process and Composition pending

FY23 Launch

Soybeans / sugarcane / potatoes / field corn / tomato / asparagus

1IFarm Trak from Kynetec 2020 2Spark BIP Soybean 20/21 3Internal Estimate

TAM: ~$1.4Bn2

Patents: Multiple pending

FY22 Launch

Soybeans

TAM: ~$80m3

Patents: Combination and Composition

FY22 Launch

Sugarcane

Future Growth Strategy - FY23 to FY27 Key Growth Pillars & Strategies

Mike Frank, President & COO, UPL

Dhruv Sawhney, COO, nurture.farm

Raj Tiwari, CSCO

Superior growth of high-margin differentiated & sustainable solutions

A. Open Innovation

B. Open Collaboration

Open Innovation Topics

R&D Capabilities

Open Innovation Model

Innovation Pipeline

IP Landscape

UPL’s Capabilities for delivering Open Innovation1 Through Smart Business R&D, UPL is efficiently delivering innovative solutions to support farmer resiliency

Snapshot of R&D Capabilities and Investment

1000+

R&D Professionals

~3%

R&D Facilities

Annual Revenue reinvested in R&D

Field Stations, Chemistry and Formulation R&D Labs

Facility Type

Number

Location

Field Stations

OpenAg Farm

Chemistry and Formulations

New Ag Technologies

Brazil, Mexico, UK, India,  Vietnam, Spain

Brazil

Brazil, USA, Canada, UK, Belgium, South Africa, India, China, France, Mexico

USA, Mexico, France

1 Relates to UPL Crop Protection + NPP BioSolutions

Recent Investments

• Opened new field trial stations in Spain and UK

• Additional field trial stations planned in Mexico,

Brazil, China and West Africa.

• Opening Thane Chemistry labs in India enhances capabilities in process, formulation and analytical chemistry

New Thane Laboratory to be inaugurated in May 2022

OpenAg Center, RTP, USA

Drone spraying at Indonesia Field Research Station

Open Innovation 2nd year of operation of OpenAg Farm: creating and validating solutions at the farm level

•

The OpenAg Farm is an area of 25,000 ha divided into 7 farms in the state of Mato Grosso

Farmed multiple seasons of corn, soybeans and cotton across the year in Brazil

• Hosted multiple grower and retailer Field Days to create awareness and highlight best practices

• By farming at scale, we live the farmer pain points, create and validate solutions at farm level

Demo plots from UPL & Advanta Partnership Event (January 2022)

Open Innovation OpenAg Fam, demonstrating the benefit of UPL’s full portfolio of solutions at scale

Bringing OpenAg Innovation and OpenAg Collaboration Together

FY22 Planted Area (Ha):

Generating Results & Awareness:

NPP BioSolutions focus:

43%

38%

% of UPL Products used on Corn and Soy

OpenAg Farm soybean yield above Mato Grosso Average

BioSolutions1 improved soybean yield vs. standard

19%

~70%

+3.5 bags/ha

+8%

Corn

Cotton

Soybean

1 Treated with Biozyme, Biobac and K-Fol in demo plots

Open Innovation Developing platforms of solutions to address key farmer pain points

UPL’s Pull model driven by farmers’ challenges

Farmer pain point

Develop initial solutions with agility

Create disruptive, unique & patented solutions

Farmer pain points drive R&D / faster speed-to-market

Open approach to technology enables a wider AI pool

Platform of solutions to reinvent / create new segments

Lower innovations cost & risk

Higher ROIC business model

Crop Protection + NPP BioSolutions Pipeline Delivering high-margin Differentiated and Sustainable solutions, with a lower risk pull model and higher ROIC

Peak Pipeline Composition

Peak Pipeline Value and other Pipeline Metrics

% Post Patent Solutions

>$5.0Bn Total Risk Adjusted Peak Sales2 Outlook

+11%

Increase in PPV from last year

New molecules3 in development pipeline

New platforms of solutions in development

$2.5 - $3Bn

Risk Adjusted Sales2 contribution expected by FY27

20%+

Innovation Rate1

annual target 21.4% achieved in FY22

% Differentiated and Sustainable Solutions

1 Defined as the % of total sales from products launched in the last 5 years; 2 Considers the highest expected sales by project in any given year, risk adjusted per internal estimates assigning technical probability of success to the best of our knowledge at the time of the projection; does not consider commercial risks 3 New molecules defined as new active ingredients to be registered and sold by UPL

Open Innovation Generating and Protecting Value Through IP

Granted Patents

Pending Applications

Total Inventions

Total Countries

1,502

3,277

612

133

Category Distribution

Invention Type Distribution

Herbicide Fungicide Insecticide BioSolutions Seed Others Postharvest Device/Software

14%

16%

34%

25%

Combination Composition Method of use Formulation Process Product Others

11%

23%

12%

13%

20%

15%

Others include technology domains Fumigant, Platform technology, Seed Treatment and like

Others include - Plant patents, Kit, Software inventions and like.

Open Innovation driven by farmer pain points Driving the accelerated growth of high-margin Differentiated and Sustainable Solutions

>$5Bn

74%

of Pipeline

of Sales

1,502

3,255

Peak Pipeline Value1

Differentiated & Sustainable Focus

R&D Investment

Granted Patents

Pending Patent Applications

1Considers the highest expected sales by project in any given year, risk adjusted per internal estimates assigning technical probability of success to the best of our knowledge at the time of the projection; does not consider commercial risks

Open Collaboration - Our way of life We connect and collaborate in new ways to resolve challenges and create new opportunities together

Highlighted technology collaborations

Highlighted go-to-market collaborations

Open Collaboration – Highlighted Technology Collaborations Enhanced Tool Kit of Crop Protection Solutions

Partner:

Date:

March 2021

AI/Service:

Chloratraniliprole (CTPR)

TAM:

$5.0 Bn

Launch Year:

FY21

FY22 Update

FY27 Expectation

• Addition of core active ingredient

• New family of value-added solutions to

growers, with 17 formulations in the pipeline

• Early access to CTPR insecticide in key markets

• UPL to toll manufacture / supply CTPR to FMC

in India

• Shenzi® launch in 5 countries, including Brazil, Mexico and Poland

• Construction completed for

manufacturing plant in India; qualifications on-going to begin production by Q2 F23

• > 40 countries expected to be selling both solo and/or value-added pre-mixes containing CTPR

Partner:

Date:

(Originally )

2018, 2020 & May 2021

AI/Service:

Flupyrimin, IP

TAM:

~$2.5 Bn

Launch Year:

FY23

• Patented insecticide, new MOA subgroup

• Exclusive access to Flupyrimin formulations for foliar on Rice in several countries in SE Asia

• Exclusive access for Rice in India plus Crop Establishment applications globally with exclusions

• Enables complete portfolio for Rice in SE Asia

and India

• Strengthens Soil & Seed Health offering

FY22 Update

FY27 Expectation

• Registration obtained for

Rice in India in FY22 for FY23 launch, with over 3,500 demonstration trials conducted

• New registrations/launches expected for Rice across South-East Asia

• First registration expected for Crop Establishment in USA, with subsequent launch

Open Collaboration – Highlighted Technology Collaborations Microbial Solutions to enhance NPP BioSolutions

Long-term Strategic Collaboration for Sustainable Agriculture

Partner:

Date:

October 2021

AI/Service:

Microbial BioSolutions

TAM:

~$4.5 Bn1

Launch Year:

FY23

• Design of biological solutions (including biostimulants and biocontrol) to address key farmers’ pain points leveraging Chr. Hansen’s microbial capabilities

• Commercialization of solutions through UPL’s global distribution network

FY22 Update

FY27 Expectation

• Multiple active projects in different geographies.

• Regulatory submissions made in USA and Brazil

• 1st launch (bionematicide) expected in Brazil by early 2023.

• 6 products expected be launched by FY27 including bionematicides, biofungicides and biofertilizers.

Open Collaboration – Highlighted Go-To-Market Collaborations Increased ability to serve small to medium size farms (<4 k ha) in Brazil

Bunge investment in Sinagro, an associate company of UPL in Brazil

Partner:

Date:

Type:

January 2022

• Bunge is one of the world’s leaders in sourcing, processing, supplying

oilseed/grain products and ingredients

• Sinagro, an associate company of UPL, is a major reseller of grains and

Investment in Sinagro

agricultural products in the Cerrado region of Brazil.

Country:

Brazil

• Bunge now has acquired a 33% stake in Sinagro.

Launch Year:

FY23 (cleared by CADE in March 2022)

• Enhanced ability to serve small to medium size farms by leveraging Bunge’s

expertise in risk management and logistics capabilities.

Open Collaboration - Our way of life Our open network of partners allow us to drive sustainable growth for all, contributing to over 10%1of our sales in FY27

Highlighted technology collaborations

Highlighted go-to-market collaborations

> $12 Bn of Total Available Market covered by highlighted collaborations

Bunge’s investment in Sinagro will maximize opportunities with small and middle size farms, with improved risk management and logistics capabilities

1Including other on-going collaborations not highlighted

Accelerated penetration in select markets, crops and segments

Accelerated penetration in selected geographies, crops and segments Topics

NPP BioSolutions penetration

Services/Digital Offerings

New investments in 22 countries

Enhancing proximity to farmers

Pronutiva

Dedicated Team drives accelerated growth of NPP BioSolutions

Market & FY22 Performance

Ambition and Key Growth Drivers (FY23 to FY27)

• BioSolutions market is fast-growing frontier in agriculture:

• Ambition to grow at ~20% CAGR in the next 5 years,

~ 14% CAGR1 from FY22 to FY27

outperforming the market

• NPP is #1 in BioSolutions, ~ 8% of total CP sales ($412m) in FY22 at higher contribution margins

• Dedicated NPP business unit creates focus on

communicating the value proposition of our BioSolutions, while increasing adoption at farm level

• 9 manufacturing plants and 6 Formulations/ R&D

laboratories performing AI Discovery and Development

Key Growth Drivers

1. Staffing of multifunctional dedicated NPP BioSolutions

Teams (152 FTE’s in FY23)

2. Execution of funded Strategic Initiatives to enhance

ability to win in key countries

3. R&D Pipeline driven by internal innovation/external

FY22 BioSolutions Sales by Region

FY22 BioSolutions Sales by Type

collaboration:

North America LATAM Europe ROW + India

22%

33%

BioControl

37%

BioStimulants+

44%

54%

Other

>$0.4 Bn

Total Risk Adjusted Peak Sales2 Outlook

New Molecules3 in Development Pipeline

4. Accelerate adoption through pronutiva® integrated

crop programs

1 Source: Markets and Markets 2 Considers the highest expected sales by project in any given year, risk adjusted per internal estimates assigning technical probability of success to the best of our knowledge at the time of the projection; does not consider commercial risks 3 New Molecules defined as new active ingredients to be registered and sold by UPL

Leading NPP BioSolutions

Vacciplant®/Laminarin Pre-Mixes Inventing the plant vaccine segment

K-Tionic® Foliar/Soil Nutrition BioSolution

GAXY® Novel concentrated BioStimulant

2 novel pre-mixes of BioSolutions

Nutrition BioSolution containing Carbon derived from fulvic acid, N2 and Potassium

Concentrated biostimulant with established mode of action, flexibility of application and ease of formulation

• Vacciplant as a standalone formulation

used in multiple countries (~ 20 in FY22) to boost plants’ natural defenses

• Pre-mixes in development will be excellent

tools for resistance and residue management

•

Increases the availability, assimilation and translocation of nutrients and mitigates stress • Supplies multiple nutrients and promotes the development of beneficial micro-organisms

• Option to optimize the use of high-cost

fertilisers without losing efficacy

• Patented process to conserve biologically active molecules

• Efficacy for crop establishment and

crop growth, enhancing yield and quality

TAM: $350m1

Expected Launch: 2025/26 (pre-mixes)

Regions: Global

TAM: $1.8Bn1

Expected Launch: Sold in > 15 Countries

Regions: Multiple

TAM: $800m1

Expected Launch: pre-launch in 2 countries Broader launches in 2024/25

Regions: Global

Vine / Fruits & Vegetables / Cereals / Pome fruits / Cocoa / Banana

4 patent applications

Fruits & Vegetables, Ornamentals

trade secret

Cereals/ Corn/ Soybean/

Tree, Nuts and Vines

2 patent families

1Internal Intelligence

Securing a brighter future for farmers Connected to over 1.5 million farmers, leading to economic resilience and sustainable outcomes

Farm Mechanization

Digital Offerings

E-commerce for ag inputs

•

Largest shared economy model for farm mechanisation in India, aimed at relieving labour shortage, cost and operational efficiencies and yield improvement

• Enabling farmer resilience by

connecting the ag ecosystem through digital technologies to provide services, products, solutions to farmers for sustainable farming

•

Launched in Oct 2020, an ag input marketplace to connect retailers to manufacturers, providing discovery, convenience and price transparency

2500+ machines

1.5 million farmers

80K+ retailers

5+ million acres

92% digital adoption

15+ brands serviced

Solving for farmer resilience through integrated digital solutions

Today

1.5 Mn+ Farmers onboard

5 Mn+ Acres serviced

80K+ Retailers onboard

In 3 years

6 Mn+ Farmers onboard

40 Mn+ Acres serviced

300K+ Retailers onboard

4747

New investments delivering incremental growth in 22 countries

Strategic Approach

FY22 - FY27 projected impact1

• Development of long-term growth strategies for UPL’s top 22 countries, > 80% of the market • Prioritized opportunities to address unmet needs of farmers in key crops and expand presence in segments where UPL is under-represented

• 96 accretive Strategic Initiatives designed, funded and in execution phase:

Type of Initiatives

Examples

Go-to-Market: Enhancing the ability to reach and serve a target market segment

NPL: Maximizing the impact of new product launches

Service & Digital: Creating solutions by offering a service or digital tool

Customer: Strengthening the partnership of UPL and its customers

1. USA – Midwest growth by supporting key retailer strategies in corn and soybeans 2. USA – Increase field resources to accelerate Soil & Seed Health growth

1.Argentina – Lifeline® for weed resistance management in soybeans 2. India – Launch of Flupyrimin based solutions for Rice

1. Mexico – Digital services to support sustainable agriculture in specialty crops 2. Germany – Potato pre and post harvest novel application solutions

1. Brazil – Consultancy/certification services at farm level for Food Value Chain 2. France – Offer multiple financial solutions for customers

• Strategic initiatives complementary to our R&D Pipeline, NPP BioSolutions and nurture.farm focus

• Projected impact of Strategic Initiatives in the next 5 years:

• 1.5% - 3% CAGR incremental

revenue growth

• Margin accretive

• Significant growth from strategic

initiatives in North America

• $52m of revenues in FY22, first

year of implementation

1Includes NPP BioSolutions related Strategic Initiatives, representing 15% of FY27 incremental revenues. 2Service-related initiatives include digital tools, support systems, and support application technology

Enhancing proximity to farmers in all regions

• Use of AI/digital tools to better

serve farmers

Crop Service

www.uplcropservice.pl

• Farmers request post-harvest services

digitally

• Berries symposium for producers and technicians; talks from crop experts

• Spraying Services: from 2

machines in FY15 to 2,500 in FY22

• Acquisition of Yoloo has brought UPL closer

to farmers, concentrating on key crops

• 15 years of Aplique Bem1 stewardship program for small and medium size farms; > 75,000 farmers trained

• Pronutiva farmers’ day with AIS;

over 200 farmers attended

• Mobile, on-farm seed

management, seed processing and seed treatment

1Collaboration with Centro de Engenharia e Automação (CEA), Instituto Agronômico (IAC)

Pronutiva integrated solutions drive growth enabling the crop to realize its maximum potential

NPP BioSolutions

Conventional Crop Protection

Crop Health

Since 2009, UPL offers integrated crop health solutions through the pronutiva® program - combining targeted conventional crop protection and biosolutions for increased crop and soil health. Higher yields, healthier crops with lower residues. Available through UPL’s global distribution network.

Yield

Sustainability

Improved quality

ROI

Area serviced (Acres – Millions)

1.7

0.8

Integrated crop health

India pronutiva evolution:

4,046

UPL Villages have adopted pronutiva programs in FY22, 202% growth from FY21

+15%

Average Increase in Farmer Income

+220K

~8%

0.1

FY20

FY21

FY22

Farmers supported in FY22, growing to 400K farmers in FY23

Of total sales in FY22, growing to ~ 10% in FY23

1.8

1.4

0.9

0.5

Increase in groundnut yields of ~ 35-40% in Gujarat

Accelerated penetration in selected geographies, crops and segments Five key drivers for accelerated sustainable growth

NPP BioSolutions Penetration

Service/Digital Offerings

New investments in 22 countries

Enhancing proximity to farmers

Pronutiva

#1 in BioSolutions with ambition to grow at 20% CAGR, outperforming the market

From 1.5 Mn+ farmers on board today to over 6 Mn farmers in FY25

1.5% - 3% CAGR incremental revenue growth next five years on top of base business

Select acquisitions and service-oriented activities to enhance the proximity to farmers

Integrated crop health drives sustainable growth

Supply Chain Management: Reliability of supply and cost competitiveness

Occupational Health and Safety Committing to “Zero Harm”

Strengthened Personal and Process Safety Management and Enhancing Safety Culture

Hazardous Chemical Management and Incident Learnings

Strengthened Global Warehouse Assessment Program

• Incidents • Benchmarking exercise on process

safety by global experts

• Digital interventions- Manufacturing 4.0 & Robotics for ensuring people and asset safety (e.g video analytics of people movement)

• Crisis Management Plan rolled out for India and in progress for global sites

•

Implemented revised protocols for storage of WIP chemicals across all manufacturing sites globally Enhanced focus on process safety trainings

• Process, People and Operations risk

•

assessment - global exercise underway Emergency Transport Management system implemented - to attend on-road transport emergencies

•

External experts onboarded for warehouse selection – as part of business continuity planning

Note: TRFR is calculated per 200,000 manhours worked. FY2021 TRFR was impacted by Jhagadia fire incident

Process Safety Incidents (no.) Series 1

FY20

FY21

FY22

Total Recordable Frequency Rate (TRFR)

0.45

0.32

0.21

FY20

FY21

FY22

0.5

0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

Strong Global Sourcing Footprint

Snapshot of UPL’s Manufacturing Footprint

Active Ingredient (AI) Supply Sourcing Snapshot - FY22

Total Raw Material Sourcing Snapshot - FY22

22%

72%

In-House Manufacturing Outsourced Manufactuing Direct Purchase

31%

38%

31%

India Imports - China Imports - Others

• Global ‘manufacturing footprint’ enables ‘UPL’ to be closer to the customers

• ~72% of the company’s AI requirement is manufactured in-house supported by low import dependence which ensures a highly reliable AI supply base

• Manufacturing of top 10 AIs is fully backward integrated enabling

cost-leadership in key products (no import of intermediates)

•

Strategic tie-ups with partners for custom manufacturing of AIs

Reliable AI manufacturing set-up, backward integrated model for key AIs, strategically located formulation sites and well- diversified global raw material sourcing base - Provide ‘UPL’ a Competitive Edge in Supply Chain

Initiatives to Enhance Reliability of Supply Chain and Drive Capital Efficient Growth

Key Initiatives Implemented Over The Last 3 Years (FY19-FY22)

Drive growth with optimum investments

De-risking the supply chain

• Established robust manufacturing partner ecosystem

• Further diversified the key starting raw materials

• Share of AI sourcing via strategic outsourced

partners increased from 2% in FY19 to ~6% in FY22

• Capacities for new products and expansion of capacities

through debottlenecking

• Fixed asset turnover ratio improved from 1.8x

in FY19 to 2.4x in FY22

and intermediates supply sources

• Established long-term strategic tie-ups across

the supply chain

• Signed long-term contracts for in-bound and

out-bound logistics with major players

• Collaborating with key starting raw materials

and intermediates suppliers enabling to benefit from favorable sourcing terms and ensure reliability of supplies

Continued Reduction of Environment Footprint in Manufacturing Supporting cost competitiveness

FY22 Reduction in Environment Footprint (vs.FY21)

Initiatives

Current Status

60% Plants are zero liquid discharge

50,000m3

Annual rainwater harvesting and reuse

23% FY22 renewable power at two largest plants (19% in FY21)

11% Per ton water consumption

7% Per ton CO2 emissions

17%

Per ton waste disposal

Note: FY22 water,Co2 and waste numbers are subject to verification by third party assurance

• Conversion to Cleaner and Greener Technologies – Leverage Green cell team that scouts for sustainable technologies

• Increased Recycling and Improved

efficiencies using Rainwater Harvesting, Zero liquid discharge

• Enhance recyclability of total waste by converting waste to energy, extended producer responsibility for recycling waste

• Innovation in Green Tech: 2 patents filed last year for innovative waste treatment technologies

Key Initiatives over FY23-27 to Maintain Supply Chain Competitive Edge

3-pronged strategy to ‘Enhance Efficiency’ and ‘Drive ROCE Accretive Sustainable Growth’

Optimise Sourcing Mix

Digitization & Analytics

Continued reduction of environment footprint in manufacturing

• Expand own manufacturing capacity

for key products

• AI/ML tools to significantly enhance

manufacturing efficiency

•

Increased sourcing of non-key products through strategic third-party manufacturing partners

• New future-ready supply chain planning

processes to improve demand predictability and production planning leading to better working capital efficiency and customer service

• Reduce specific CO2 emissions and waste disposal by ~25% from the FY20 baseline

• Reduce specific water consumption by ~20% from the FY20 baseline

Business Performance and Future Growth Strategy - FY23 to FY27 1. Opening Statements Advanta Seeds

Bhupen Dubey, COO, Advanta

Overview of Seeds Business

INR 2,985 Crore

INR 774 Crore

REVENUE

~14% CAGR over FY19-FY22

EBITDA

~23% CAGR over FY19-FY22

900+

HYBRID VARIETIES

Across 40+ Crops

60+ YEARS Research experience in plant genetics

24 Biotechnology & Research Centers

COUNTRIES

With commercial presence & employees in 26 countries

PRODUCTION SITES

KEY COUNTRIES - India - Argentina – Thailand – Australia – USA

Note: LATAM excludes Brazil (Brazil is included in RoW). North America includes Mexico. ASEAN includes Thailand, Indonesia and neighboring countries South Asia includes India and neighboring countries

Regional Mix - FY22

10%

31%

10%

16%

26%

Crop Mix – FY22

10%

16%

40%

26%

South Asia

LATAM

ASEAN

Australia

Row

North America

Field Corn

Grain & Forage Sorghum

Vegetables

Sunflower & Canola

Others

Widely recognized consumer brands associated with high performing non-GMO seeds

Global Brands

Crop Specific Brands

Technology Brands

FY22 Financial Highlights

A Strong Year under Challenging Conditions

Particulars (INR Crore)

FY 2022

FY 2021

Revenue

Contribution Margin %

SG&A Expenses

R&D

EBITDA

2,985

57.6%

678

267

774

2,405

57.2%

567

221

587

B/(W) LY

24%

+39bps

-20%

-21%

32%

EBITDA Margin %

25.9%

24.4%

+150bps

Robust Operating FCF Generation

• Operating FCF to EBITDA conversion is 77%

+24% Revenue Growth vs LY • Strong Traction in Field Corn in India;

Corn, Sunflower and Sorghum in LATAM; and Grain Sorghum in Australia & USA

• Partially Offset by Subdued performance of Fresh Corn in

Thailand

+32% (+150 bps) EBITDA Growth vs LY • Robust contribution profit growth (+25%) coupled with

lower SG&A spent as % of sales (improved by 87 bps from 24% in FY21 to 23% in FY22) and R&D investment remaining constant at 9% of sales

•

NWC days improved by 20% from FY21 to FY22 as a result of healthier cash collections of ~INR 3,100 crore for FY 22 (31% Growth)

Revenue Growth by Region vs LY

Core Focus on Innovation •

Continued R&D Investment to ensure timely portfolio renewal

•

Innovation Rate improved significantly to 33% in FY22 versus 24% in FY21*

19%

32%

22%

14%

25%

Note: • Proforma financials includes Longreach, a joint venture company •

Innovation Rate % is based on Product Sales launched in or after FY18 as % of total sales for FY21, and in or after FY19 as % of total sales for FY22

South Asia

LATAM

ASEAN

Australia

NAFTA

ROW

Advanta has Delivered Robust EBITDA Growth over FY19-22

Advanta has Grown its Revenue and EBITDA at a Healthy Pace of ~14% and ~23% CAGR respectively over last 3 years

21%

1,996

21%

2,056

24%

2,405

26%

2,984

Revenue

EBITDA

All Figures are in Crore

Key Growth

Drivers

Key Margin

Drivers

420

429

587

774

EBITDA Margin %

FY19

FY20

FY21

FY22

Market share gains in Tropical Field Corn in India, LAN and Indonesia

Strong traction in Grain Sorghum in Argentina, Australia and USA driven by proprietary technologies – ‘Igrowth‘ and ‘Aphix’

Continued growth of ‘Vegetables portfolio’ in India coupled with expansion of portfolio into MENA region

Increase in share of value- added (Sorghum) and higher margin portfolios (Vegetables and Corn in India, Sweet corn in LATAM and ASEAN)

Higher Growth in high- margin geographies such as India, LATAM, Australia and ASEAN Leveraging value pricing and R&D traits

Healthy volume growth drove operating leverage

(resulting in lower per unit supply chain cost)

Replacement of old capacities with new plants in Australia, Thailand, India and Argentina improved efficiency

Notes: • •

Proforma financials including Longreach LAN includes ANDEAN excluding Chile, Argentina and Brazil. ME&A includes Middle East and Africa

Long-term Growth Ambition

Target to Achieve Revenue Growth of ~12-15 % p.a. and EBITDA Growth of ~15-18% p.a. over next 5 years

Product Innovation

Increase Penetration Across Geographies & Crops

KEY

GROWTH

DRIVERS

✓ ESG focused solutions - developing climate smart crops

✓ Leveraging Germplasm and genetics in new geographies

and technologies across various products

✓ Market share and gains – Corn in India, Oil Crops in

✓ Smart R&D solving specific farmer need by leveraging our

presence across ‘lab-to-field’ chain

✓ Unique germplasm with focus on non- GMO traits for

boosting innovation

Argentina and Australia

✓ Sorghums portfolio in Americas leveraging the Igrowth

and Aphix technologies and Crop Focus

✓ B2C strategy to accelerate growth in ASEAN, Africa &

LATAM regions

MARGIN

DRIVERS

✓ Higher margin ‘B2C business’ and ‘Vegetable portfolio’ in Asia, Africa and Central America countries

✓ Portfolio renewal with new technologies and focus on value pricing

✓ Improving manufacturing efficiency by investing in innovation, inhouse capacities and leveraging on volume growth

UPL Growth Ambition 1. Opening Statements FY23 to FY27

Mike Frank, President and COO, UPL

FY23 to FY27 Growth Ambition

• Long Term Revenue Growth Ambition of 7-10% p.a.

• Achieve 50%+ of revenues from high margin differentiated and sustainable solutions by FY27,

and accelerate growth in select countries, crops and segments

o Deliver our $5Bn (at peak) R&D pipeline o Accelerated growth of NPP BioSolutions

and continued expansion of pronutiva solutions o Expand offerings of Digital and Other Services,

supported by nurture.farm

o Superior growth in 22 countries by addressing key

farmer pain points while also looking for better ways to be close to farmers

• Continue to grow Advanta Seeds revenues by 12 – 15% p.a.

• Maintain Manufacturing Competitive edge to enable profitable growth across segments with

reliability of supply

• Continuous focus on increasing ROCE and improving leverage ratios

• Reimagine Sustainability in everything we do

3-way focus for sustainable real-world impact

Environment Reduce environmental impact

Food security

Increase food security, supply & safety of food systems

Economic & social Build & promote economic resilience for farmers & farming communities

Appendix

Detailed Profit and Loss: Q4 FY22

Particulars

Total Revenue from operation

Cost of Production

Contribution Profit

SG&A Expenses

EBITDA

Other Income / (Loss)

Amortization / Depreciation

Finance Cost

PBT

Tax

PAT

Income/(Loss) from Associate Co. and JV

Minority Interest

Profit After Tax, Associate Income & Minority Interest

Exceptional Cost

Net Profit

Q4FY22

15,860

9,624

6,236

2,644

3,591

(95)

642

800

2,055

266

1,789

114

356

1,547

168

1,379

% of Sales

100%

61%

39%

17%

23%

13%

11%

10%

Q4FY22

12,797

8,061

4,736

1,896

2,839

(139)

576

421

1,704

320

1,384

298

1,145

1,065

₹ crore

% of Sales

Change %

100%

63%

37%

15%

22%

13%

11%

24%

32%

26%

21%

29%

35%

29%

Detailed Profit and Loss: FY22

Particulars

Total Revenue from operation

Cost of Production

Contribution Profit

SG&A Expenses

EBITDA

Other Income / (Loss)

Amortization / Depreciation

Finance Cost

PBT

Tax

PAT

Income/(Loss) from Associate Co. and JV

Minority Interest

Profit After Tax, Associate Income & Minority Interest

Exceptional Cost

Net Profit

FY22

46,240

27,237

19,002

8,837

10,165

(355)

2,359

2,295

5,157

530

4,627

134

811

3,950

324

3,626

% of Sales

100%

59%

41%

19%

22%

11%

10%

FY21

38,694

22,990

15,704

7,145

8,559

2,173

2,060

4,377

685

3,692

624

3,110

238

2,872

₹ crore

% of Sales

Change %

100%

59%

41%

18%

22%

11%

10%

19%

21%

19%

18%

25%

27%

26%

Q4 & FY22 Finance Cost and Other Income Breakdown

Finance Cost Breakdown

Particulars

Interest Cost on Borrowings

Interest Cost on Leases & Others

Other Finance Charges

Total Interest Cost and Other Financial Charges

Net Exchange Impact in Finance Cost

NPV – Interest & Finance

Total Finance Cost

Other Income Breakdown

Particulars

Interest Income

Net Exchange Impact

Others

Total Other Income / (Loss)

Mike

₹ crore

Q4 FY22

Q4 FY21

Change

FY2022

FY2021

Change

162

346

539

172

800

194

168

130*

492

(121)

421

(32)

178

(99)

293

379

685

749

171

882

426

338

1,605

1,646

349

340

158

256

2,295

2,060

(197)

323

(167)

(41)

191

235

Q4 FY22

Q4 FY21

Change

FY2022

FY2021

Change

(211)

(94)

(189)

(139)

(22)

132

(636)

149

(355)

190

(207)

(58)

(429)

(406)

Note: *One-time cost pertaining to prepayment of bonds in Q4FY21 has been reclassified from other financial charges to interest cost for comparison purposes

Balance Sheet: FY22

Mike

₹ crore

Particulars

YTD Mar'22

YTD Mar’21

Particulars

YTD Mar’22

YTD Mar’21

Equity Share Capital

Perpetual bonds

153

2,986

153

2,986

Retained earnings

21,522

17,748

Total Equity

24,662

20,887

Minority Interest

4,647

3,693

Borrowings

25,866

23,774

Long term Finance lease obligation

Other long-term liabilities

Deferred Tax

842

417

399

736

798

996

Provisions and others

1,685

1,776

Fixed Assets 1

Tangible Assets

Intangible Assets

Right of use assets2

Goodwill

Total Fixed Assets

Investments

Inventory

Trade receivables

Trade payables

Other liabilities

Working Capital

Cash and Bank3

Loans and advances and other current assets

8,470

11,068

792

18,364

38,695

782

13,078

14,287

(16,553)

(2,181)

8,632

6,960

3,449

7,352

11,147

695

17,689

36,883

618

9,422

11,874

(12,759)

(1,030)

7,508

4,853

2,800

Total Liabilities

58,518

52,661

Total Assets

58,518

52,661

Note: 1Fixed Assets includes Arysta Assets at its Fair Value. 2IND-AS 116 accounting standard for lease implemented in FY2020. 3Cash and Bank include INR 840 crore of liquid investments USD/INR Rate – 31 Mar’22: 75.72, 31 Mar’21: 73.11

Debt Profile: FY2022

Breakdown of Debt by Type of Loan (%)

As of March 31, 2021

As of March 31, 2022

23%

15%

54%

22%

USD Denominated Bonds

16%

20%

Acquisition Loan

Sustainability Linked Loan

42%

Others

Breakdown of Long-term Debt by Maturity (%)

Breakdown of Debt by Currency (%)

As of March 31, 2022

30%

FY2024

43%

FY26-28

26%

FY28 & beyond

55%

USD

37%

EUR

INR

2% Others

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