Rain Industries Limited

Jagan Reddy Nellore

Vice Chairman of RAIN Industries Limited.

Gerard Sweeney

President of RAIN Carbon Inc.

T. Srinivasa Rao

Chief Financial Officer of RAIN Industries Limited; and

Alan Chapple

Director of Corporate Communications at RAIN Carbon Inc. RAIN INDUSTRIES LIMITED

6.85 billion

ntation it can be noted that we finished the first quarter 2023 with an Adjusted EBITDA of Rupees 6.85 billion. This is in line with our fourth-quarter 2022 EBITDA of Rupees 6.90 billion and within our hist

6.90 billion

sted EBITDA of Rupees 6.85 billion. This is in line with our fourth-quarter 2022 EBITDA of Rupees 6.90 billion and within our historically normal range. Given the challenges posed by continued high energy c

21 million

result of this, we were forced to make a net realizable value adjustment on inventories of about $21 million during the quarter. It is also worth noting that, as a global company with operations across thre

rs,

of a major smelter coming back online once energy costs come down. As a long-time customer of ours, this smelter restarting could be beneficial for us. It is also worth reminding everyone that alumi

3%

Moving on to the distillation side of our Carbon segment, coal tar pitch volumes were down about 3% in the first quarter, as the smelter curtailments in Europe continued to chip away our pitch sale

13%

, preventing even higher margin erosion. In our other carbon products category, volumes increased 13%. That was primarily driven by a steep increase in sales of carbon black oil due to stronger dem

4%

e economy. During the first quarter, China’s economy grew RAIN INDUSTRIES LIMITED 4%, but much of the recent production has been for inventory-building rather than as current sales t

52.10 billion

ch 2023 Quarter. In the First quarter of 2023, RAIN achieved consolidated net revenue of Rupees 52.10 billion compared to Rupees 44.09 billion in the first quarter of 2022, an increase of Rupees 8 billion. T

44.09 billion

uarter of 2023, RAIN achieved consolidated net revenue of Rupees 52.10 billion compared to Rupees 44.09 billion in the first quarter of 2022, an increase of Rupees 8 billion. This resulted from an increase i

8 billion

2.10 billion compared to Rupees 44.09 billion in the first quarter of 2022, an increase of Rupees 8 billion. This resulted from an increase in revenue of Rupees 9.73 billion from our Carbon segment offset

9.73 billion

r of 2022, an increase of Rupees 8 billion. This resulted from an increase in revenue of Rupees 9.73 billion from our Carbon segment offset by decrease of Rupees 1.65 billion from our Advanced Materials seg

1.65 billion

increase in revenue of Rupees 9.73 billion from our Carbon segment offset by decrease of Rupees 1.65 billion from our Advanced Materials segment and Rupees 0.08 billion from our Cement segment. RAIN’s con

“Accordingly, RAIN Management will be addressing those questions.”

“ALAN Thanks Gerry, can you provide your views on aluminum-industry capacity and how any increased capacity in the CPC or CTP industries will be impacted?”

“Also, considering that the major capex investments for that segment have been completed, what will be the new normal for Advanced Materials?”

“Considering that we are starting in the middle of the calendar year, we expect the plant to run at 40-50% capacity for the remainder of this year and then ramp up over the next 1- 2 years.”

“Also, with the reduction of production capacity in Europe by others HHCR producers, we expect to achieve higher volumes in next couple of years.”

“As indicated earlier, our intention is to reduce debt with the cash that will be generated as our working capital requirements come down.”

“What kind of steps can we take to minimize the inventory losses going forward?”

“With operations spread across various jurisdictions and a higher concentration of debt only in USA and Germany, there will be variations in the effective tax rate.”

“However, we expect that the effective tax rates will be in the range of 30- 32% going forward.”

Management

1

With me on the call today are

1

Management

Mr. Jagan Reddy Nellore – Vice Chairman of RAIN Industries Limited. Mr. Gerard Sweeney – President of RAIN Carbon Inc. Mr. T. Srinivasa Rao – Chief Financial Officer of RAIN Industries Limited; and Mr. Alan Chapple - Director of Corporate Communications at RAIN Carbon Inc. RAIN INDUSTRIES LIMITED Good day ladies and gentlemen. This is Alan Chapple, Director of Corporate Communications at RAIN Carbon Inc. Welcome to the RAIN Industries Limited earnings discussion for the first quarter of 2023.

With me on the call today are

- Mr. Jagan Reddy Nellore – Vice Chairman of RAIN Industries Limited. - Mr. Gerard Sweeney – President of RAIN Carbon Inc.; and - Mr. T. Srinivasa Rao – Chief Financial Officer of RAIN Industries Limited Following the Earnings Presentation and Management Commentary that we released on May 9, 2023, we have been receiving questions from certain investors and analysts regarding industry developments and the status of our expansion projects. Accordingly, RAIN Management will be addressing those questions. Before we begin, management would like to mention that some of the statements made in today's discussion may be forward-looking in nature, and they could be affected by certain risks and uncertainties. The company's actual results could differ materially from such forward-looking statements. We will now start the discussion. RAIN INDUSTRIES LIMITED ALAN Gerry, the first question is with regard to our operations in Europe. Can we sell higher coal tar pitch volumes outside of Europe to comp