SHARDACROPNSE26 October 2021

Sharda Cropchem Limited has informed the Exchange about Investor Presentation

Sharda Cropchem Limited

Sharda Cropchem Lintited

Tel. : +91 22 66782800 FAX: +91 2266782828 / 66782808 E-mail : office@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

October 26, 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 half year ended September 30, 2021

Dear Sir/Madam,

to Regulatio n 30 of the SEBI

Pursuant (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), we are enclosing herewith the presentation to be made to the Investors/Analysts on the Financial Results of the Company for the quarter and half year ended September 30, 2021.

website ulation

the of the

Company Listing

The presentation www.shardacroDchem.comin accordance Regulations.

is also being uploaded

on with

the Reg

We request you to take the same on record.

Yours faithfu lly,

Jetkin Gudhka Company Secretary & Compliance Officer

End: As above

Sharda Cropchem Limited INVESTOR PRESENTATION Q2 & H1 FY22 Results Update

PAGE NO.

CONTENTS

Q2 & H1 FY22 RESULT HIGHLIGHTS

FINANCIAL PERFORMANCE

COMPANY OVERVIEW

BUSINESS MODEL

BUSINESS STRATEGY & OUTLOOK

Q2 & H1 FY22 Result Highlights

Q2 FY22: KEY FINANCIAL HIGHLIGHTS

REVENUES & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

In ₹ Mn

31.1%

28.0%

6,428

4,248

51.3 %

16.1%

1,038

76.8 %

13.8%

587

7.1%

6.5%

37.3 %

415

302

4.5%

191

67.9 %

5.0%

320

Q2 FY21

Q2 FY22

Q2 FY21

Q2 FY22

Q2 FY21

Q2 FY22

Q2 FY21

Q2 FY22

Revenues grew by 51.3% YoY to ₹ 6,428 mn in Q2 FY22 led by strong volume growth across geographies

Gross profit grew by 36.3% YoY to ₹ 1,798 mn in Q2 FY22. Gross margin during Q2 FY22 stood at 28.0%

EBITDA grew by 76.8% YoY from ₹ 587 mn in Q2 FY21 to ₹ 1,038 mn in Q2 FY22

EBITDA margin expanded by 233bps YoY to 16.1% in Q2 FY22 driven by volume growth and better cost management, partly impacted by change in product mix and inflation in the freight cost.

PBT grew by 37.3% YoY from ₹ 302 mn in Q2 FY21 to ₹ 415 mn in Q2 FY22, partly impacted by higher depreciation charge and forex loss in Q2 FY22 vis-à- vis forex gain in Q2 FY21

PAT surged by 67.9% YoY from ₹ 191 mn in Q2 FY21 to ₹ 320 mn in Q2 FY22

PAT margin expanded by 49bps YoY to 5.0% in Q2 FY22 mainly due to lower effective tax rates (22.9% in Q2 FY22 vs. 36.9% in Q2 FY21)

* EBITDA excluding IA & IAUD write-off (₹ 8.7 mn in Q2 FY22 and ₹ 19.2 mn in Q2 FY21)

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

H1 FY22: KEY FINANCIAL HIGHLIGHTS

REVENUES & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

In ₹ Mn

30.5%

28.6%

12,655

8,137

55.5 %

16.6%

2,104

96.1 %

13.2%

1,073

8.0%

8.5%

66.3 %

1,080

649

5.8%

470

5.5%

701

49.2 %

H1 FY21

H1 FY22

H1 FY21

H1 FY22

H1 FY21

H1 FY22

H1 FY21

H1 FY22

Revenues grew by 55.5% YoY to ₹ 12,655 mn in H1 FY22 led by strong volume growth across geographies

Gross profit grew by 46.0% YoY to ₹ 3,624 mn in H1 FY22. Gross margin during H1 FY22 stood at 28.6%

EBITDA grew by 96.1% YoY from ₹ 1,073 mn in H1 FY21 to ₹ 2,104 mn in H1 FY22

EBITDA margin expanded by 344bps YoY to 16.6% in H1 FY22 driven by volume growth and better cost management, partly impacted by change in the product mix and inflation in the freight cost.

PBT grew by 66.3% YoY from ₹ 649 mn in H1 FY21 to ₹ 1,080 mn in H1 FY22 led by better operating leverage ,partly impacted higher depreciation & forex loss in H1FY22 vs forex gain in FY21.

PAT surged by 49.2% YoY from ₹ 470 mn in H1 FY21 to ₹ 701 mn in H1 FY22

PAT margin contracted by 24bps YoY to 5.5% in H1 FY22 mainly due to higher effective tax rates (35.1% in H1 FY22 vs. 27.6% in H1 FY21)

* EBITDA excluding IA & IAUD write-off (₹ 44.1 mn in H1 FY22 and ₹ 29.6 mn in H1 FY21)

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

Q2 & H1FY22: REGIONWISE REVENUE BRIDGE

Q2 FY22 REGIONWISE REVENUE BRIDGE

H1 FY22 REGIONWISE REVENUE BRIDGE

In ₹ Mn

➢ NAFTA , Europe & LATAM continues to be the growth engine for Sharda

Cropchem

Q2 & H1FY22: SEGMENTWISE HIGHLIGHTS

Q2 FY22 YoY ANALYSIS: REVENUE BREAKUP

H1 FY22 YoY ANALYSIS: REVENUE BREAKUP

In ₹ Mn

5,029

3,443

6,428

4,248

10,373

6,515

12,655

8,137

1,399

805

2,282

1,622

Agrochemicals

Non-Agrochemicals

Total

Agrochemicals

Non-Agrochemicals

Total

Q2 FY21

Q2 FY22

Q2 FY21

Q2 FY22

➢ Agrochemicals revenues during Q2 FY22 grew by 46.1%

➢ Agrochemicals revenues during H1 FY22 grew by 59.2%

YoY

➢ Non-Agrochemicals revenues during Q2 FY22 grew by

➢ Non-Agrochemicals revenues during H1 FY22 grew by

73.8% YoY ➢ Revenue Mix:

40.7% YoY ➢ Revenue Mix:

Agrochemicals : Non-Agrochemicals mix stood at 78:22 in Q2 FY22 as against 81:19 in Q2 FY21

Agrochemicals : Non-Agrochemicals mix stood at 82:18 in H1 FY22 as against 80:20 in H1 FY21

Q2 FY22: AGROCHEMICALS BUSINESS DEEP DIVE

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

Q2 FY21: Agrochemicals Revenues : 3,443

In ₹ Mn

[62%]

[23%]

[9%]

[6%]

8 5 2

, I

[43%]

[36%]

[14%]

[7%]

Q2 FY22: Agrochemicals Revenues : 5,029

8 0 3

, I

➢ Q2 FY22 Revenue Growth:

Europe: 0.6%, NAFTA: 124.4%, LATAM 134.8% & RoW: 85.9%

➢ Formulation: AI Mix Q2 FY22 – 94:6 Q2 FY21 – 93:7

➢ Product Mix updates: Herbicides continues to command 52.0% of revenues in Q2 FY22 & 51.0% of revenues in Q2 FY21

H1 FY22: AGROCHEMICALS BUSINESS DEEP DIVE

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

H1 FY21: Agrochemicals Revenues : 6,515

In ₹ Mn

[57%]

[26%]

[11%]

[6%]

3 6 4

, I

[45%]

[34%]

[15%]

[6%]

H1 FY22: Agrochemicals Revenues : 10,373

4 7 8

, I

➢ H1 FY22 Revenue Growth:

Europe: 25.8%, NAFTA: 110.8%, LATAM 120.3% & RoW: 44.9%

➢ Formulation: AI Mix H1 FY22 – 92:8 H1 FY21 – 93:7

➢ Product Mix updates: Herbicides continues to command 49.7% of revenues in H1 FY22 & 49.8% of revenues in H1 FY21

Q2 FY22: NON-AGROCHEMICAL BUSINESS DEEP DIVE

REVENUE BREAKUP: REGIONWISE

In ₹ Mn

Q2 FY21: Non-Agrochemicals Revenues : 805

Q2 FY22: Non-Agrochemicals Revenues : 1,399

[45%]

[31%]

[16%]

[8%]

[50%]

[30%]

[15%]

[5%]

➢ NAFTA grew by 95.9% in Q2 FY22 to ₹ 702 mn ➢ Europe grew by 64.7% in Q2 FY22 to ₹ 413 mn ➢ RoW grew by 58.9% in Q2 FY22 to ₹ 207 mn ➢ LATAM grew by 17.5% in Q2 FY22 to ₹ 77 mn

H1 FY22: NON-AGROCHEMICAL BUSINESS DEEP DIVE

REVENUE BREAKUP: REGIONWISE

In ₹ Mn

H1 FY21: Non-Agrochemicals Revenues : 1,622

H1 FY22: Non-Agrochemicals Revenues : 2,282

[43%]

[34%]

[17%]

[6%]

[48%]

[29%]

[18%]

[5%]

➢ NAFTA grew by 55.8% in H1 FY22 to ₹ 1,088 mn ➢ Europe grew by 19.3% in H1 FY22 to ₹ 655 mn ➢ RoW grew by 47.8% in H1 FY22 to ₹ 412 mn ➢ LATAM grew by 33.7% in H1 FY22 to ₹ 127 mn

H1 FY22: WORKING CAPITAL UPDATE

WORKING CAPITAL DAYS*

NET WORKING CAPITAL DAYS

102

H1 FY21

H1 FY22

H1 FY21

H1 FY22

Inventory Days

Receivables Days

Creditors Days

➢ Net working capital days improved to 86 days in H1 FY22 as against 98 days in H1 FY21

* Calculated on average inventory, receivables and creditors

Financial Performance

Q2 & H1 FY22: CONSOLIDATED PROFIT & LOSS STATEMENT

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 ₹

In ₹ Mn

Q2 FY22 Q2 FY21

YoY % H1 FY22 H1 FY21

YoY %

FY21

6,427.8

4,247.6

51.3% 12,654.6

8,136.6

55.5% 23,956.1

4,629.4

2,927.7

58.1%

9,030.8

5,655.1

59.7% 16,359.6

1,798.4

1,319.9

36.3%

3,623.7

2,481.5

46.0%

7,596.5

28.0%

31.1% (309bps)

28.6%

30.5% (186bps)

31.7%

105.4

74.2

42.2%

205.9

158.0

663.9 1,037.9

678.0 587.0

(2.1%) 76.8%

1,358.1 2,103.8

1,280.3 1,072.8

30.3%

6.1% 96.1%

373.2

3,054.8 4,551.7

16.1%

13.8% 233bps

16.6%

13.2%

344bps

19.0%

131.8

606.4

4.4

128.5

415.1

94.9

320.2

5.0%

3.55

(70.3)

N.A.

16.9

(204.9)

N.A.

(198.9)

423.2

43.3%

1,145.6

777.8

47.3%

1,704.4

7.3 (39.5%)

94.7

35.7%

10.5

193.1

302.3

37.3%

1,079.8

111.5 (14.9%)

190.7

67.9%

4.5% 49bps

2.11

68.2%

378.9

700.9

5.5%

7.77

15.6

(32.6%)

(0.6%)

27.7

459.3

66.3%

3,094.5

194.4

649.1

179.2

111.4%

802.3

469.9

49.2%

2,292.2

5.8% (24bps)

5.20

49.4%

9.6%

25.40

* EBITDA excluding IA & IAUD write-off (₹ 8.7 mn in Q2 FY22, ₹ 19.2 mn in Q2 FY21, ₹ 44.1 mn in H1 FY22, ₹ 29.6 mn in H1 FY21 and ₹ 383.2 mn in FY21)

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

H1 FY22: CONSOLIDATED BALANCE SHEET

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

H1 FY22

FY21

902.2 15,729.8 3.2 16,635.2

- 24.3 78.0 23.1 1,012.9 1,138.3

290.5 5,743.9 1,756.8 793.1 29.4 535.1 9,148.8 26,922.3

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 1,490.6 625.4 31.7 500.0 11,393.6 28,638.6

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 financial 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

H1 FY22

FY21

178.5 4.3 4,989.6 1,884.0 47.4 699.3 124.1 7,927.2

6,078.9 1,700.3 8,256.6 1,087.7 1,203.2 162.2 506.2 18,995.1

26,922.3

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

Company Overview

COMPANY’S SNAPSHOT

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 2,610 registrations* [2,324 registrations - Formulations and 286 registrations - Active Ingredients (AIs)]. Additionally, it has filed 1,054 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 September, 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

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

KEY FINANCIAL PERFORMANCE INDICES

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

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

KEY INSTITUTIONAL INVESTORS – 30TH SEP 2021 % HOLDING

MARKET DATA

AS ON 22ND OCT 2021

HDFC MF

DSP MF

L & T Mutual Fund

9.20%

2.89%

1.45%

Market capitalization (INR Mn)

28,058.6

Price (INR)

No. of shares outstanding (Mn)

Face Value (INR)

311.0

90.2

10.0

52 week High-Low (INR)

387.1 – 230.8

SHAREHOLDING – 30TH SEP 2021

SHARE PRICE PERFORMANCE

DII 13.55%

FII 0.89%

Public 10.74%

Promoter 74.82%

390

370

350

330

310

290

270

250

Source: BSE

Oct-20

Jan-21

Apr-21

Jul-21

Oct-21

Business Model

DIFFERENTIATED ASSET LIGHT BUSINESS MODEL

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

Identification & Registration

Registration

AI Manufacturing

Customer & Products

Basic & Applied Research

Sharda is a focussed global agrochemical marketing & distribution company

Business Strategy & Outlook

BUSINESS STRATEGY & OUTLOOK

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,

Portugal, USA & India

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

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

markets

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

➢ Investing in preparing dossiers and seeking registrations in own name

Focus on Operational Efficiencies

➢ Accelerated focus on revenue generating investments

➢ Margin improvements

➢ Better cost management and eliminate NVAs

FOR FURTHER QUERIES

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

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