Sharda Cropchem Limited has informed the Exchange about Investor Presentation

§hartJa Cropchem Limited

Tel. : +91 2266782800 FAX : +91 2266782828 / 66782808 E-mail: offlce@shardaintl.com Regd . Office: Prime Business Park . Dashrathlal Joshi Road , Vile Parle (W),

Mumbai - 400056, India.

www.shardacropchem.com

ISO 9001 : 2015 Reg. No: 702949

CIN : L51909MH2004PLC145007

26 th May, 2021

The Manager National Stock Exchange India Limited Listing Department "Exchange Plaza", 5th Floor Bandra- Kurla Complex, Bandra (East), Mumbai - 400 051

Scrip Symbol: SHARDACROP EQ

Subject: Investors/Analyst's Presentation for the Quarter and Year ended March 31! 2021

Dear Sir/Madam,

to Regulation 30 of

Pursuant (Listing Obligations and Disclosure Requirements) Regulati ons, 2015 (Listing Regulations), we are enclosing herewith the presentation to be made to the I nvestors/ Analysts on the Financial Results of the Company for the Quarter and Year ended March 31, 2021.

the SEBI

website ulation

of

the

46

of

the

Company Listing

The presentation www.shardacropchem.comin accordance Regulations.

is also being uploaded

on with

the Reg

We request you to take the same on record.

Yours faithfully,

Jetkin Gudhka Company Secretary & Compliance Officer

End: As above

Sharda Cropchem Limited INVESTOR PRESENTATION Q4 & FY21 Results Update

2

PAGE NO.

CONTENTS

03

12

15

20

22

Q4 & FY21 RESULT HIGHLIGHTS

CONSOLIDATED FINANCIALS

COMPANY OVERVIEW

BUSINESS MODEL

BUSINESS STRATEGY & OUTLOOK

3

Q4 & FY21 Result Highlights

Q4 FY21: KEY FINANCIAL HIGHLIGHTS

04

REVENUES & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

36.3%

8,761

24.2 %

31.3%

10,881

26.6%

2,331

22.6%

2,460

5.5 %

15.8%

1,381

20.8 %

15.3%

1,669

16.2%

1,417

12.3%

1,339

5.5 %

In ₹ Mn

Q4 FY20

Q4 FY21

Q4 FY20

Q4 FY21

Q4 FY20

Q4 FY21

Q4 FY20

Q4 FY21

Revenues grew by 24.2% YoY to ₹ 10,881 mn in Q4 FY21 Gross profit grew marginally by 7.3% YoY to ₹ 3,410 mn in Q4 FY21. Gross margin contracted by 495bps YoY from 36.3% in Q4 FY20 to 31.3% in Q4 FY21 due to exceptionally higher gross margins in Q4FY20 driven by favourable product mix

EBITDA grew by 5.5% YoY from ₹ 2,331 mn in Q4 FY20 to ₹ 2,460 mn in Q4 FY21

EBITDA margin contracted by 400bps YoY to 22.6% in Q4 FY21 mainly due to unfavourable product mix

PBT grew by 20.8% YoY from ₹ 1,381 mn in Q4 FY20 to ₹ 1,669 mn in Q4 FY21 mainly due to revenue growth, decline in forex loss and rise in other income

PAT declined by 5.5% YoY from ₹ 1,417 mn in Q4 FY20 to ₹ 1,339 mn in Q4 FY21

PAT margin contracted by 386bps YoY to 12.3% in Q4 FY21 mainly due to lower effective tax rates in FY20

* EBITDA excluding IA & IAUD write-off (₹ 296.7 mn in Q4 FY21 and ₹ 523.3 mn in Q4 FY20)

(IA & IAUD – Intangible Assets & Intangible Assets Under Development)

FY21: KEY FINANCIAL HIGHLIGHTS

05

REVENUE & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

In ₹ Mn

30.7%

20,030

31.7%

23,956

17.5%

19.0%

4,552

19.6 %

3,506

29.8 %

12.9%

3,095

67.4 %

9.2%

1,849

8.2%

1,647

9.6%

2,292

39.2 %

FY20

FY21

FY20

FY21

FY20

FY21

FY20

FY21

Revenues grew by 19.6% YoY to ₹ 23,956 mn in FY21

Gross profit grew by 23.6% YoY to ₹ 7,597 mn in FY21. Gross margin expanded by 104bps YoY from 30.7% in FY20 to 31.7% in FY21 due to favourable product mix & higher sales in Europe region

EBITDA grew by 29.8% YoY from ₹ 3,506 mn in FY20 to ₹ 4,552 mn in FY21

EBITDA margin expanded by 150bps YoY to 19.0% in FY21 mainly due to favourable product mix and operating efficiencies

PBT grew by 67.4% YoY from ₹ 1,849 mn in FY20 to ₹ 3,095 mn in FY21 due to impressive YoY revenue growth and forex gains in FY21 as against forex loss in FY20

PAT grew by 39.2% YoY from ₹ 1,647 mn in FY20 to ₹ 2,292 mn in FY21

PAT margin expanded by 135bps YoY to 9.6% in FY21

* EBITDA excluding IA & IAUD write-off (₹ 383.2 mn in FY21 and ₹ 546.5 mn in FY20)

(IA & IAUD – Intangible Assets & Intangible Assets Under Development)

Q4 & FY21: REGIONWISE REVENUE BRIDGE

06

Q4 FY21 REGIONWISE REVENUE BRIDGE

FY21 REGIONWISE REVENUE BRIDGE

In ₹ Mn

➢ Europe and NAFTA continues to be the growth engine for Sharda Cropchem

Q4 & FY21: SEGMENTWISE HIGHLIGHTS

07

Q4 FY21 YoY ANALYSIS: REVENUE BREAKUP

FY21 YoY ANALYSIS: REVENUE BREAKUP

In ₹ Mn

10,048

8,227

10,881

8,761

20,585

16,850

23,956

20,030

534

834

3,180

3,372

Agrochemicals

Non-Agrochemicals

Total Revenue

Agrochemicals

Non-Agrochemicals

Total Revenue

Q4FY20

Q4FY21

FY20

FY21

➢ Agrochemicals revenues during Q4 FY21 grew by 22.1% YoY ➢ Non-Agrochemicals revenues during Q4 FY21 grew by

56.1% YoY ➢ Revenue Mix:

Agrochemicals : Non-Agrochemicals mix stood at 92:8 in Q4 FY21 & 94:6 in Q4 FY20

➢ Agrochemicals revenues during FY21 grew by 22.2% YoY ➢ Non-Agrochemicals revenues during FY21 grew by 6.0% YoY ➢ Revenue Mix:

Agrochemicals : Non-Agrochemicals mix stood at 86:14 in FY21 & 84:16 in FY20

Q4 FY21: AGROCHEMICALS BUSINESS DEEP DIVE

8

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

Q4 FY20: Agrochemicals Revenues : 8,227

In ₹ Mn

7 4 3

, I

A

Q4 FY21: Agrochemicals Revenues : 10,048

9 0 5

, I

A

➢ Q4 FY21 Revenue Growth:

Europe: 14.4%, NAFTA: 34.8%, RoW: 5.8% & LATAM 46.2%

➢ Formulation: AI Mix Q4 FY21 – 95:5 Q4 FY20 – 96:4

➢ Product Mix updates: Herbicides continues to command 52.6% of revenues in Q4 FY21 & 52.6% of revenues in Q4 FY20

FY21: AGROCHEMICALS BUSINESS DEEP DIVE

9

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

FY20: Agrochemicals Revenues : 16,850

In ₹ Mn

0 1 4 , 1

, I

A

FY21: Agrochemicals Revenues : 20,585

4 0 4 , 1

, I

A

➢ FY21 Revenue Growth:

➢ Formulation: AI Mix

Europe: 20.0%, NAFTA: 26.0%, LATAM: 24.6% & ROW: 17.1%

FY21 – 93:7 FY20 – 92:8

➢ Product Mix updates: Herbicides continues to command 51.3% of revenues in FY21 & 50.6% of revenues in FY20

Q4 & FY21: NON-AGROCHEMICAL BUSINESS DEEP DIVE

10

REVENUE BREAKUP: REGIONWISE

Europe

NAFTA

LATAM RoW

Europe

NAFTA

LATAM RoW

19%

18%

3%

7%

32%

37%

17%

27%

7%

32%

28%

Q4 FY21

Q4 FY20

FY21

FY20

4%

42%

42%

41%

44%

➢ Europe grew by 35.7% in Q4 FY21 to ₹ 265 mn ➢ NAFTA grew by 57% in Q4 FY21 to ₹ 352 mn ➢ LATAM grew by 215.2% in Q4 FY21 to ₹ 59 mn ➢ RoW grew by 64.8% in Q4 FY21 to ₹ 158 mn

➢ Europe grew by 22.4% in FY21 to ₹ 1,076 mn ➢ NAFTA grew by 12.7% in FY21 to ₹ 1,488 mn ➢ LATAM grew by 87.1% in FY21 to ₹ 239 mn ➢ RoW declined by 33.4% in FY21 to ₹ 568 mn

FY21: WORKING CAPITAL UPDATE

11

WORKING CAPITAL DAYS*

NET WORKING CAPITAL DAYS

164

158

164

147

68

69

74

86

FY20

FY21

FY20

FY21

Inventory Days

Receivables Days

Creditors Days

➢ Net working capital days stood at 86 days in FY21 as against 74 days in FY20

* Calculated on average inventory, receivables and creditors

12

Consolidated Financials

Q4 & FY21: CONSOLIDATED PROFIT & LOSS STATEMENT

13

Particulars

Revenue from Operations

COGS

Gross Profit

Gross Margin %

Employee Expenses

Other Expenses

EBITDA*

EBITDA Margin %

Forex (Gain)/Loss

Depreciation

Finance Cost

Other Income

PBT

Tax Expense

PAT

PAT Margin %

Earnings Per Share (EPS) In ₹

Q4 FY21

Q4 FY20

YoY %

FY21

FY20

YoY%

In ₹ Mn

10,881.4

7,471.5

3,409.9

31.3%

118.6

1,128.4 2,459.6

22.6%

131.5

522.2

7.7

167.6

8,760.7

5,581.4

3,179.3

24.2%

33.9%

7.3%

23,956.1

20,030.2

16,359.6

13,886.1

7,596.5

6,144.1

19.6%

17.8%

23.6%

36.3%

495bps

116.5

1,255.2 2,330.9

1.8%

10.1% 5.5%

26.6%

400bps

179.5

350.0

4.5

107.9

26.8%

49.2%

71.9%

55.4%

20.8%

N.A.

5.5%

31.7%

373.2

3,054.8 4,551.7

19.0%

(198.9)

1,704.4

27.7

459.3

30.7%

104bps

349.0

2835.7 3,505.9

7.0%

7.7% 29.8%

17.5%

150bps

151.4

1,371.2

19.2

431.1

N.A.

24.3%

44.6%

6.5%

3,094.5

1,848.7

67.4%

802.3

201.8

297.7%

2,292.2

1,646.9

39.2%

1,669.2

1,381.4

329.9

(35.5)

1,339.3

1,416.8

12.3%

14.84

16.2%

386bps

15.70

5.5%

9.6%

25.40

8.2%

135bps

18.25

39.2%

* EBITDA excluding IA & IAUD write-off (₹ 296.7 mn in Q4 FY21, ₹ 523.3 mn in Q4 FY20, ₹ 383.2 mn in FY21 and ₹ 546.5 mn in FY20)

(IA & IAUD – Intangible Assets & Intangible Assets Under Development)

FY21: CONSOLIDATED BALANCE SHEET

14

Particulars Equities & Liabilities Shareholder's Funds Equity and Share Capital Other Equity Non-controlling Interest Total Equity

Non-Current Liabilities Borrowings Trade Payables Other Financial Liabilities Provisions Deferred Tax Liabilities (net) Total non-current liabilities

Current Liabilities Borrowings Trade Payables Other Financial Liabilities Other Current Liabilities Current Tax Liabilities Provisions Total current Liabilities Total Equity & Liabilities

FY21

FY20

902.2 15,240.8 3.1 16,146.1

- 24.0 116.0 30.2 928.7 1,098.9

678.5 8,067.5 1,535.9 580.0 31.7 500.0 11,393.6 28,638.6

902.2 13,125.7 2.7 14,030.6

0.9 23.8 130.6 26.6 693.0 874.9

- 6,866.9 897.2 543.5 15.2 243.9 8,566.7 23,472.2

Particulars Assets Non-Current Assets Property, Plant and Equipment Goodwill Other Intangible assets Intangible assets under development Deferred Tax Assets (net) Non-Current Tax Assets Other non-current assets Total non-current assets

Current Assets Inventories Investments Trade Receivables Cash & Cash equivalents Other Bank balances Other Financial Assets Other Current Assets

Total current assets

Total Assets

In ₹ Mn

FY21

FY20

208.8 4.3 5,231.1 1,310.4 60.4 736.3 94.0 7,645.3

5,255.5 830.1 11,625.7 855.5 1,749.8 280.6 396.1 20,993.3

28,638.6

278.2 4.4 3,880.8 1,614.0 39.2 725.3 115.5 6,657.4

3,822.4 1,155.3 9,893.9 777.6 756.9 112.8 295.9 16,814.8

23,472.2

15

Company Overview

COMPANY’S SNAPSHOT

16

Agrochemicals Focused Company

Asset-Light Business Model

Firm Registration Pipeline

Intellectual Property (IP) driven company engaged in marketing and distribution of wide range formulations and generic active ingredients

The Company efficiently channelises its time and resources for strengthening its core competency of identifying generic molecules and registration opportunities which offers scalable growth with limited capital requirements

The Company has procured 2,543 registrations* [2,270 registrations - Formulations and 273 registrations - Active Ingredients (AIs)]. Additionally, it has filed 1,128 applications for registrations globally pending at different stages

Diversified Sourcing Arrangements

Enduring relationship with multiple manufacturers and formulators enables the Company to source and supply formulations or generic active ingredients at competitive prices

Consistently Increasing Global Presence

With its diversified range of product portfolio, the Company has grown by expanding its business operations in 80+ countries, across Europe, NAFTA, Latin America and Rest of the World

*As on 31st March, 2021

Wide-spread Distribution Network

Presence in the entire agrochemical value chain with 500 third-party distributors and 400+ sales force serving the Company’s esteemed clientele in 80+ countries

Prudent and Professional Management

Sound Financial Standing

Financial Performance

The Company’s apt domain knowledge and experience gives a substantial competitive advantage for expanding its business in existing markets and entering new geographies

Sharda Cropchem is a debt-free company which enables the Company to utilise its cash flows prudently

Sales – 14.4% (FY17-21 CAGR) ROCE – 16.0% (FY21), ROE – 15.2% (FY21) and Net Cash & Cash Equivalents - INR 3,435 mn (FY21)

GEOGRAPHICAL FOOTPRINTS

17

Presence in 80+ countries across Europe, NAFTA, LATAM & RoW

FY21 CAPEX: INR 3,090 Mn

KEY FINANCIAL PERFORMANCE INDICES

18

REVENUE FROM OPERATIONS

EBITDA & EBITDA Margin*

PAT & PAT Margin

17,066

13,992

19,978 20,030

22.3% 20.2% 16.3% 17.5% 19.0%

23,956

3,124

3,454

3,267

3,506

4,552

13.6% 11.2% 8.8%

8.2%

9.6%

1,904

1,908

1,763

1,647

2,292

In ₹ Mn

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

LEVERAGE ANALYSIS

RETURN METRICS

* EBITDA excluding IA & IAUD write-off

11,351

12,842

14,031

16,146

6,545

1,686

1,226

2

FY17

1,697

FY18

Equity

3,356

2,690

3,435

679

FY19

Debt

FY20

FY21

C&CE

28.9%

21.5%

24.3%

18.2%

17.6%

14.6%

11.8%

12.3%

16.0%

15.2%

FY17

FY18

FY19

FY20

FY21

ROCE %

ROE %

Source: PAT Margin = PAT / Revenue from Operations, EBITDA Margin = EBITDA / Revenue from Operations, ROE: PAT/Avg. Equity, ROCE: EBIT/Avg. Capital Employed [(Capital Employed = Equity + Total Debt)]

SHAREHOLDING STRUCTURE

19

KEY INSTITUTIONAL INVESTORS – 31ST MAR 2021 % HOLDING

MARKET DATA

AS ON 25TH May 2021

HDFC MF

L & T Mutual Fund

DSP MF

Pinebridge Global

9.22%

4.55%

2.89%

1.96%

Market capitalization (INR Mn)

Price (INR)

No. of shares outstanding (Mn)

Face Value (INR)

32,055

355.3

90.2

10.0

52 week High-Low (INR)

374.0 – 134.6

SHAREHOLDING – 31ST MARCH 2021

SHARE PRICE PERFORMANCE

Public 5.38%

DII 16.65%

FII 3.15%

Promoter 74.82%

400

350

300

250

200

150

100

Source: BSE

May-20

Aug-20

Nov-20

Feb-21

May-21

20

Business Model

DIFFERENTIATED ASSET LIGHT BUSINESS MODEL

21

Agrochemical Value Chain

Sharda’s Operating Area

Basic & Applied Research

Identification

Registration

Active Ingredient Manufacturing

Formulation & Packaging

Marketing & Distribution

ASSET LIGHT BUSINESS MODEL

Sharda’s Model: Demand Pulled / Customer Driven

➢ Focus on identification of generic molecules,

preparing dossiers, seeking registrations, marketing & distributing formulations through third party distributors and/or own sales

➢ Manufacturing of AIs and formulations is outsourced ➢ Highly flexible operating model resulting in – ➢ Overall cost competitiveness ➢ Efficient management of fluctuating market

demand across various geographies.

➢ Offering wide range of formulations and AIs

Markets

Markets

Identification & Registration

Registration

AI Manufacturing

Customer & Products

Basic & Applied Research

Sharda is a focussed global agrochemical marketing & distribution company

22

Business Strategy & Outlook

BUSINESS STRATEGY & OUTLOOK

23

Forward Integration - Build own Sales Force ➢ Leverage market presence and execution capabilities ➢ Adopt the factory-to-farmer approach and be a one-stop solution provider ➢ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy,

01

Portugal, USA & India

Expand & Strengthen Distribution Presence ➢ Expand geographical reach using existing library of dossiers

02

➢ Two-fold strategy of further penetrating existing markets and entering new

markets

03

Continual Investment in Obtaining Registrations ➢ Continue to identify generic molecules going off- patent

➢ Investing in preparing dossiers and seeking registrations in own name

04

Focus on Biocide Registrations

➢ Scale up marketing and distribution of biocides with a focus on Europe

➢ Increase biocide registrations

FOR FURTHER QUERIES

24

Mr. Ashok Vashisht Chief Financial Officer Email: cfo@shardaintl.com Contact No: +91 22 6678 2800

Mr. Hiral Keniya / Chintan Mehta IR Consultants Email: shardacropchem@dickensonworld.com Contact no: +91 9029662801 / 9892183389

Mr. Abhinav Agarwal Chief Financial Office Email: cfo@shardaintl.com Contact No: +91 22 6678 2800