Sharda Cropchem Limited has informed the Exchange about Investor Presentation

§harda Cropelleol Limited

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

Mumbai - 400056, India.

www.shardRcropchem.com

ISO 9001: 2015 Reg . No: 702949

CIN : LS1909MH2004PLC145007

27th July, 2021

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

Scrip Symbol: SHARDACROP EQ

Subject: Investors/Analyst's Presentation for the Quarter ended June 30, 20 21

Dear Sir/Madam,

to Regulation 30 of

Pursuant (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulati ons), we are enclosing herewith the presentation made to the Investors/ Analysts Call on the Financial Results of the Company for the Quarter ended June 30, 2021.

the SEBI

website ulation

of

the

46

of

the

Company Listing

The presentation www .shardacro pc hem.comin acco rdance Regulations.

is also being uploaded

on with

the Reg

We request you to take the same on record.

Yours Sincerely,

Jetkin Gudhka Company Secretary fi: Compliance Officer

Encl: As above

Sharda Cropchem Limited INVESTOR PRESENTATION Q1 FY22 Results Update

2

PAGE NO.

CONTENTS

03

09

11

16

18

Q1 FY22 RESULT HIGHLIGHTS

FINANCIAL PERFORMANCE

COMPANY OVERVIEW

BUSINESS MODEL

BUSINESS STRATEGY & OUTLOOK

3

Q1 FY22 Result Highlights

Q1 FY22: KEY FINANCIAL HIGHLIGHTS

04

REVENUES & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

In ₹ Mn

29.9%

29.3%

6,227

3,889

60.1 %

17.1%

1,066

119.4 %

12.5%

486

8.9%

10.7%

91.6 %

665

347

7.2%

279

36.4 %

6.1%

381

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Revenues grew by 60.1% YoY to ₹ 6,227 mn in Q1 FY22 led by strong volume growth across geographies

Gross profit grew by 57.1% YoY to ₹ 1,825 mn in Q1 FY22. Gross margin remained flat at 29.3% in Q1 FY22 mainly due to product mix

EBITDA grew by 119.4% YoY from ₹ 486 mn in Q1 FY21 to ₹ 1,066 mn in Q1 FY22

EBITDA margin expanded by 463bps YoY to 17.1% in Q1 FY22 mainly due to better operating leverage

PBT grew by 91.6% YoY from ₹ 347 mn in Q1 FY21 to ₹ 665 mn in Q1 FY22 well supported by higher operating leverage

PAT surged by 36.4% YoY from ₹ 279 mn in Q1 FY21 to ₹ 381 mn in Q1 FY22

PAT margin contracted by 107bps YoY to 6.1% in Q1 FY22 mainly due to higher effective tax rates (42.7% in Q1 FY22 vs. 19.5% in Q1 FY21)

* EBITDA excluding IA & IAUD write-off (₹ 35.4 mn in Q1 FY22 and ₹ 10.4 mn in Q1 FY21)

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

Q1 FY22: SEGMENTWISE HIGHLIGHTS

05

Q1 FY22 YoY ANALYSIS: REVENUE BREAKUP

In ₹ Mn

5343

3072

6227

3889

817

884

Agrochemicals

Non-Agrochemicals

Total

Q1 FY21

Q1 FY22

➢ Agrochemicals revenues during Q1 FY22 grew by 73.9% YoY ➢ Non-Agrochemicals revenues during Q1 FY22 grew by

8.2% YoY ➢ Revenue Mix:

Agrochemicals : Non-Agrochemicals mix stood at 86:14 in Q1 FY22 as against 79:21 in Q1 FY21

Q1 FY22: AGROCHEMICALS BUSINESS DEEP DIVE

06

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

Q1 FY21: Agrochemicals Revenues : 3,072

In ₹ Mn

[51%]

[29%]

[13%]

[7%]

5 0 2

, I

A

[47%]

[33%]

Q1 FY22: Agrochemicals Revenues : 5,343

[16%]

[4%]

5 6 5

, I

A

* [ ] %age revenue share

➢ Q1 FY22 Revenue Growth:

Europe: 60.1%, NAFTA: 98.5%, LATAM 109.6% & RoW: 7.4%

➢ Formulation: AI Mix Q1 FY22 – 89:11 Q1 FY21 – 93:7

➢ Product Mix updates: Herbicides continues to command 48.0% of revenues in Q1 FY22 & 49.0% of revenues in Q1 FY21

Q1 FY22: NON-AGROCHEMICAL BUSINESS DEEP DIVE

07

REVENUE BREAKUP: REGIONWISE

In ₹ Mn

Q1 FY21: Non-Agrochemicals Revenues : 817

Q1 FY22: Non-Agrochemicals Revenues : 884

[42%]

[36%]

[18%]

[44%]

[27%]

[23%]

[4%]

[6%]

* [ ] %age revenue share

➢ NAFTA grew by 13.5% in Q1 FY22 to ₹ 386 mn ➢ LATAM grew by 69.0% in Q1 FY22 to ₹ 50 mn ➢ RoW grew by 38.0% in Q1 FY22 to ₹ 205 mn ➢ Europe degrew by 18.7% in Q1 FY22 to ₹ 243 mn

Q1 FY22: WORKING CAPITAL UPDATE

08

WORKING CAPITAL DAYS*

NET WORKING CAPITAL DAYS

135

119

121

102

73

69

89

88

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Inventory Days

Receivables Days

Creditors Days

➢ Net working capital days stood at 88 days in Q1 FY22 as against 89 days in Q1 FY21

* Calculated on average inventory, receivables and creditors

9

Financial Performance

Q1 FY22: CONSOLIDATED PROFIT & LOSS STATEMENT

10

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 ₹

Q1 FY22

Q1 FY21

YoY %

6,226.8

4,401.5

1,825.3

29.3%

100.5

694.3 1,065.9

17.1%

(114.8)

539.2

6.1

64.6

664.7

284.0

380.7

6.1%

4.22

3,889.0

2,727.4

1,161.6

60.1%

61.4%

57.1%

29.9%

(56bps)

83.9

602.4 485.8

12.5%

(134.7)

354.6

8.3

99.7

346.9

67.7

279.2

7.2%

3.09

19.8%

15.3% 119.4%

463bps

(14.7%)

52.1%

(26.6%)

(35.2%)

91.6%

319.6%

36.4%

(107bps)

36.6%

In ₹ Mn

FY21

23,956.1

16,359.6

7,596.5

31.7%

373.2

3,054.8 4,551.7

19.0%

(198.9)

1,704.4

27.7

459.3

3,094.5

802.3

2,292.2

9.6%

25.40

* EBITDA excluding IA & IAUD write-off (₹ 35.4 mn in Q1 FY22, ₹ 10.4 mn in Q1 FY21 and ₹ 383.2 mn in FY21)

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

11

Company Overview

COMPANY’S SNAPSHOT

12

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 2,570 registrations* [2,292 registrations - Formulations and 278 registrations - Active Ingredients (AIs)]. Additionally, it has filed 1,026 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 30th June, 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

13

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

Q1 FY22 CAPEX: INR 635 Mn

KEY FINANCIAL PERFORMANCE INDICES

14

REVENUE FROM OPERATIONS

EBITDA & EBITDA Margin*

PAT & PAT Margin

17,066

13,992

23,956

19,978

20,030

22.3%

20.2%

16.3%

17.5%

19.0%

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

1,697

3,356

2,690

3,435

679

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

FY17

FY18

FY19

FY20

FY21

Equity

Debt

C&CE

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

15

KEY INSTITUTIONAL INVESTORS – 30TH JUN 2021 % HOLDING

MARKET DATA

AS ON 23RD Jul 2021

HDFC MF

L & T Mutual Fund

DSP MF

9.20%

4.41%

2.89%

Market capitalization (INR Mn)

Price (INR)

No. of shares outstanding (Mn)

Face Value (INR)

31,095

344.7

90.2

10.0

52 week High-Low (INR)

387.1 – 230.8

SHAREHOLDING – 30TH JUN 2021

SHARE PRICE PERFORMANCE

DII 16.52%

FII 1.19%

Public 7.47%

Promoter 74.82%

Source: BSE

400

350

300

250

200

Jul-20

Oct-20

Jan-21

Apr-21

Jul-21

16

Business Model

DIFFERENTIATED ASSET LIGHT BUSINESS MODEL

17

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

18

Business Strategy & Outlook

BUSINESS STRATEGY & OUTLOOK

19

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

20

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