S H Kelkar and Company Limited has informed the Exchange regarding Investor Presentation:Submission of earnings presentation on audited financial results for the quarter and year ended March 31, 2019

May 23, 2019

To The Manager The Department of Corporate Services BSE Limited Floor 25, P. J. Towers, Dalal Street, Mumbai — 400 001

Scrip Code: 539450

Dear Sir/ Madam,

Keva,

To The Manager The Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai — 400 051

Scrip Symbol: SHK

Sub: Submission of earnings presentation on audited financial results for the quarter and year

ended March 31, 2019

Further to the approval of audited financial results for the quarter and year ended March 31, 2019 by the Board of Directors of the Company at its meeting held on May 22, 2019 and submission of the same with the stock exchanges, we submit herewith presentation on results being made to investors in the Conference Call scheduled on May 27, 2019 at 11.00 am IST, invite of which has been submitted to the stock exchanges on May 21, 2019.

You are requested to take the above on record.

For S H KELKAR AND COMPANY LIMITED

CO4

CL'Y

MUMBAI r- rix 400080,lyy

•S" *

Ramesh Vaze Managing Director

End: As above

S H Kelkar And Company Limited Regd. Office : Devkaran Mansion, 36, Mangaldas Road, Mumbai - 400 002. (INDIA) Phone : (022) 2206 96 09 & 2201 91 30 / Fax : (022) 2208 12 04 www.keva.co.in CIN No. L74999MH1955PLC009593

Crafting Sensorial Delight

S H Kelkar and Company Limited

Largest Indian-origin Fragrance & Flavour Company

Q4 & FY19 Earnings Presentation

May 23, 2019

Disclaimer

in

the

other

factors,

concerning

reflect objectives

involve a number of

Certain statements and opinions with respect to the anticipated future performance of SHK in the presentation statements”), which (“forward-looking various and strategies, assumptions anticipated results may or may not prove to be correct. Such forward-looking statements risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among economic, political, changes regulatory, business or other market conditions. Such forward- looking statements only speak as at the date the presentation is provided to the recipient and SHK is not under any obligation to update or revise such forward-looking statements to reflect new events or circumstances. No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient’s purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof and SHK has no obligation whatsoever to update any of the information or to correct any inaccuracies which may become apparent subsequent to the date hereof.

the conclusions contained herein or

2

Crafting Sensorial Delight

Q4 & FY19 Results Overview

Management Comment

Commenting on the performance, Mr. Kedar Vaze, Whole Time Director & CEO at SH Kelkar and Company Ltd. said:

“This has been a challenging fiscal for us as we witnessed multiple macro-headwinds that impacted our performance in certain customer categories. Despite these broader market challenges, I am happy to share that we have gained a higher wallet share in our key customer accounts during the fiscal gone by. Our industry trends post GST implementation also suggests that there has been a structural shift towards larger & mid-sized players, leading to a notable decline in smaller accounts. We believe our revenue base has already been reset in FY19, and we are witnessing healthy traction in mid & large customers, with stronger focus towards enhancing the Company’s business share in these accounts.

internal analysis of

On the operational front, I am pleased to share that in the month of May, we have reached optimal utilization levels at our Greenfield manufacturing facility at Mahad. Operationalization of this facility will help improve availability of key raw materials, leading to increased cost efficiencies for SHK, going forward.

From a longer-term perspective, we foresee immense potential in our business and have accordingly undertaken several measures towards strengthening relationships with our existing customers, building and developing a robust product portfolio with new customers, and increasing operational and cost efficiencies. On the whole, we look forward to delivering steady growth in our financial and operating performance in FY2020.”

4

Consolidated Summarized P&L Statement

Particulars (Rs. crore)

Q4 FY19

Q4 FY18

Revenues from Operations (Sales excluding Excise & GST) Other Operating Income Total Operating Income Other Income Total Income Total Expenditure

• Raw Material expenses • Employee benefits expense • Other expenses

EBITDA EBITDA Margin (%) Finance Costs Depreciation and Amortization Exceptional Items PBT Tax expense PAT PAT Margin (%) Cash Profit

268.6

0.3 268.9 12.0 280.8 244.8 156.5 30.1 58.2 36.0 13% 6.1 7.9

- 22.0 1.9 19.6 7% 27.5

282.7

1.1 283.9 16.7 300.5 258.0 173.7 31.2 53.2 42.5 14% 1.6 6.5 2.78 31.6 11.9 21.0 7% 27.5

Y-o-Y Change (%)

FY19

FY18

Y-o-Y Change (%)

-5%

1,041.2

1,019.3

2%

-72% -5% -28% -7% -5% -10% -3% 10% -15% - 131 Bps 281% 22%

-30% -84% -7% - 2 Bps 0%

2.5 1,043.6 27.9 1,071.5 911.5 590.8 128.1 192. 7 160.0 15% 14.0 31.2 - 114.9 27.0 88.5 8% 119.6

1.8 1,021.0 25.7 1,046.7 862.9 562.9 125.2 174. 8 183.8 18% 4.0 23.8 12.9 143.2 50.6 93.9 9% 117.7

40% 2% 8% 2% 6% 5% 2% 10% -13% -263 Bps 251% 31%

-20% -47% -6% -71 Bps 2%

5

Key Developments

Established a Creation and Development Center (CDC) in Singapore to sharpen focus on certain categories and strengthen foothold in South East Asian markets  In addition to this centre, SHK operates three other CDC in India, Netherlands and Indonesia wherein new products are constantly

under development in conjunction with customer requirements

 The CDC centre in Singapore will help the team to carry out local market and consumer research, thereby enabling stronger knowledge of local preferences that will help SHK to develop innovative products and further enhance its presence in South East Asia

Healthy progress towards ramping up production at Mahad facility during the quarter – the plant is operating at optimal levels in May 2019  The state-of-the-art facility at Mahad manufactures Tonalid and other key raw materials used in the fragrance industry

 Operationalization of this facility to help improve availability of key raw materials, thereby enabling enhanced cost efficiencies

going forward

 Further, higher production of key ingredients will help boost the revenue performance from FY20 onwards

6

FY2019 Financial and Operational Discussions (Y-o-Y)

Revenues from operations stood at Rs. 1,041.2 crore as against Rs. 1,019.3 crore, higher by 2% YoY

 In FY19, the demand environment witnessed a slowdown across the fragrance and flavours divisions led by multiple macro-headwinds that

impacted performance, especially in the domestic market

 The Company’s fragrance division, domestically, witnessed a structural shift towards larger & mid-sized players, leading to a decline in demand from smaller customer categories. So, while the Company gained a higher wallet share in the mid and larger customer categories, sales from the smaller accounts saw a significant impact

 Increased momentum in the overseas business - International flavors and fragrance segments, both grew at a healthy rate of 14%

EBITDA stood at Rs. 160.0 crore; EBITDA margins at 15%

 Pricing pressures on key raw materials continued to impact profitability margins on a YoY basis

 Gross margins in FY19 stood at 43% as against 45% in FY18 due to the change in customer mix

PAT stood at Rs. 88.5 crore, lower by 6%; EPS at Rs. 6.20

 Interest costs increased to Rs. 14.0 crore from Rs. 4 crore in FY18, primarily owing to the commissioning of new facility at Mahad

7

Fragrance Division Net Revenue & Operating Profit

33

255

27

242

140

907

130

934

Q4 FY18 Q4 FY19

FY18

FY19

Rev. growth -5%

Rev. growth 3%

Y-o-Y Growth

OP growth -16%

OP growth -7%

 Fragrance division delivered a steady topline growth of 3% in FY19 – domestic revenues were lower by 2% led by a slowdown in the demand environment in certain customer categories

 Overseas

revenues marked

a

healthy

growth of 14%

 Operating profit margins at 14% in FY19 vs 15.4% in FY18; 11.3% in Q4 FY19 vs 12.8% in Q4 FY18

Domestic and Overseas Revenue – FY19

Y-o-Y Growth (%)

Q4 FY19

FY19

Overseas, 33%

Domestic, 67%

Domestic

Overseas

Total Growth

-20

36

-5

-2

14

3

Note: Figures in Rs. Crore unless specified otherwise

8

Flavour Division Net Revenue & Operating Profit

21

15

113

107

4

28

5

27

Q4FY18

Q4FY19

FY18

FY19

Rev. growth -4%

Rev. growth -5%

Y-o-Y Growth

OP growth 35%

OP growth -27%

 Flavour division reported subdued performance during the period with a decline in domestic revenues

 Overseas segment continued to report healthy

sales during FY19

 Operating profit was at Rs. 15 crore with margins

at 14.4%

Domestic and Overseas Revenue –FY19

Y-o-Y Growth (%)

Q4 FY19

FY19

Overseas, 51%

Domestic, 49%

Domestic

Overseas

Total Growth

-5

-3

-4

-19

14

-5

Note: Figures in Rs. Crore unless specified otherwise

9

Consolidated Balance Sheet

Particulars (Rs. Crore)

EQUITY AND LIABILITIES Equity Equity share capital Other equity Retained earnings Other Reserves Equity attributable to owners of the Company Non-Controlling Interest Total equity

Liabilities

Non-current liabilities Financial liabilities Borrowings Others Provisions Deferred tax liabilities (net) Total non-current liabilities

Current liabilities Financial liabilities Borrowings Trade payables -total outstanding dues of micro enterprises and small enterprises -total outstanding dues of creditors other than micro enterprises and small enterprises Other financial liabilities Other current liabilities Provisions Current tax liabilities (net) Total current liabilities

Total Liabilities

As at 31st March 2019 (Audited)

As at 31st March 2018 (Audited)

144.6

425.5 293.2 863.4 10.8 874.2

70.0 2.0 0.9 17.9 90.7

264.0

7.2

127.1

27.1 13.6 10.1 31.1 480.2

570.9

144.6

368.1 344.2 856.9 0.0 856.9

48.2 1.3 0.6 8.2 58.3

116.1

8.9

146.7

29.0 25.3 12.4 26.0 364.4

422.7

TOTAL EQUITY AND LIABILITIES

1445.1

1279.6

Particulars (Rs. Crore)

ASSETS Non-current assets Property, Plant and Equipment Capital work-in-progress

Investment Property

Goodwill Other Intangible assets Intangible Assets under Development Equity Accounted Investee Financial Assets Investments* Loans Others Deferred tax assets (net) Other tax assets (net) Other non-current assets Total non current assets

Current Assets Inventories Financial Assets Investments Trade receivables Cash and cash equivalents Other bank balances Loans Others

Other current assets Total current assets

TOTAL ASSETS

*Amount less than Rs. 0.01 crs

As at 31st March 2019 (Audited)

As at 31st March 2018 (Audited)

369.4 15.4

13.8

39.8 38.9 22.2 95.8

0.0 2.7 1.4 25.5 28.0 21.8 674.8

373.9

1.5 284.4 37.4 3.4 6.2 2.2

61.1 770.3

274.4 35.6

14.3

35.6 27.5 24.6 94.6

0.0 2.2 1.4 4.4 25.2 41.2 581.1

347.9

1.5 276.6 17.4 6.4 4.1 0.2

44.2 698.5

1445.1

1279.6

10

Balance Sheet Snapshot – As on March 31, 2019

Networth

Fixed Assets

Cash & Investments

Net Debt

Note: Figures in Rs. crore

11

Cash Flow Snapshot

Particulars (Rs. crore)

FY14

FY15

FY16

FY17

FY18

FY19

Cash flow from Operations

Cash flow from investing activities

Net

32.1

-63.7

-31.6

61.7

-17.3

44.4

86.4

-22.4

64.0

102.3

-96.0

103.3

40.7

-220.6

-109.5

6.3

-117.3

-68.7

Note: Cash and cash equivalent includes investments in mutual fund

Capex

121

86

32

26

38

FY15

FY16

FY17

FY18

FY19

 Low capital

intensive business

robust cash flow generation remains a key strength of SHK’s business model

–

 Investments are primarily towards in-organic and other cost saving opportunities – benefits to reflect in cash flows going forward

12

Robust Historical Financial Trend (to update)

Total Operating Income

835

925

981

1,025

1,048

EBITDA

177

189

160

160

132

FY15

FY16

FY17

FY18

FY19

FY15

FY16

FY17

FY18

FY19

EBITDA Margin

15.8%

17.1%

17.9%

18.0%

14.9%

PAT

105

93

88

64

73

Return on Net Worth & Return on Capital Employed (%)

RONW

ROCE

17.6%

21.0%

22.7%

20.2%

13.5%

12.0%

PAT Margin

7.7%

7.8%

10.6%

8.8%

8.2%

13.5%

13.9%

14.3%

13.8%

FY15

FY16

FY17

FY18

FY19

FY15

FY16

FY17

FY18

FY19

Note: Rs. Crore; All figures till FY15 as per IGAAP EBITDA adjusted for one-time expense in FY18

Note: Return on Capital Employed is calculated as [ EBIT/(Net Debt + Net Worth) ]

13

Key Financial Ratios

Particulars (Rs. crore)

FY15

FY16

FY17

FY18

FY19

EBITDA margin (%)

PAT Margin (%)

Debt to Equity

Return on Networth (%)

Return on Capital Employed (%)

15.8

7.7

0.5

13.5

17.6

17.1

7.8

0.1

13.9

21.0

17.9

10.6

0.1

14.3

22.7

18.0

8.8

0.2

13.8

20.2

14.9

8.2

0.4

12.0

13.5

Note:

1. Return on Networth is calculated as: PAT/ Average Networth 2. Return on Capital Employed is calculated as: EBIT/ Average Capital Employed 3. All figures till FY15 as per IGAAP; 4. EBITDA adjusted for one-time expense in FY18

14

Crafting Sensorial Delight

Annexure

Conference Call Details

S H Kelkar and Company Ltd.’s Q4 & FY19 Earnings Conference Call

Time

• 11.00 AM IST on Monday, May 27, 2019

Primary dial-in number

• +91 22 6280 1141

• +91 22 7115 8042

India Local access Number

• +91 70456 71221 (Available all over India)

• Hong Kong: 800 964 448

International Toll Free

• Singapore: 800 101 2045

Number

• UK: 0 808 101 1573

• USA: 1 866 746 2133

About Us

S H Kelkar and Company Limited (SHK) is the largest Indian-origin Fragrance & Flavour Company in India. It has a long standing reputation in the fragrance industry developed in 94 years of experience. Its fragrance products and ingredients are used as a raw material in personal wash, fabric care, skin and hair care, fine fragrances and household products. Its flavor products are used as a raw material by producers of baked goods, dairy products, beverages and pharmaceutical products. The Company offers products under SHK, Cobra and Keva brands.

The Company has a strong and dedicated team of scientists, perfumers, flavourists, evaluators and application executives at its facilities and five creation and development centres in Mumbai, The Netherlands and Indonesia for the development of fragrance and flavour products. The research team has developed 12 molecules over the last three years. The Company has filed 10 patent applications in respect of molecules, systems and processes developed by it, of which 2 have been commercially exploited in deodorant and fine fragrance categories.

Over the years, SHK has developed a vast product portfolio of fragrances and flavor products for the FMCG, personal care, pharmaceutical and food & beverages industry. The Company has a diverse and large client base including leading national and multi-national FMCG companies, blenders of fragrances & flavors and fragrance & flavor producers.

For further information please contact:

Ms Deepti Chandratre

S H Kelkar and Company Limited

Tel: +91 22 2167 7777

Fax: +91 22 2164 9766

Email: deepti.chandratre@keva.co.in

Anoop Poojari / Shikha Kshirsagar

CDR India

Tel: +91 22 6645 1211/1243

Fax: +91 22 6645 1213

Email: anoop@cdr-india.com

shikha@cdr-india.com

17

Crafting Sensorial Delight

Thank You