Sharda Cropchem Limited has informed the Exchange about Investor Presentation

Slla.rda Cropchem Limited

Tel. : -t-91 2266782800 FAX: +91 2266782828 I 66782808 E-mail : oHice@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

January 22, 2022

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

Scrip Symbol: SHARDACROP EQ

Subject: Investors/Analyst's Presentation for the qua rter and nine months ended December 31, 2021

Dear Sir/Madam,

Pursuant to Regulation 30 of the SESI (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 nine months ended December 31,2021 .

The presentation www.shardacropchem.com Regulations.

is also being uploaded on

the website of the Company in accordance with Regulation 46 of the Listing

We request you to take the same on record.

Yours faithfully,

Jetkin Gudhka Company Secretary & Compliance Officer

Encl: As above

Sharda Cropchem Limited INVESTOR PRESENTATION Q3 & 9M FY22 Results Update

2

PAGE NO.

CONTENTS

03

13

15

20

22

Q3 & 9M FY22 RESULT HIGHLIGHTS

FINANCIAL PERFORMANCE

COMPANY OVERVIEW

BUSINESS MODEL

BUSINESS STRATEGY & OUTLOOK

3

Q3 & 9M FY22 Result Highlights

Q3 FY22: KEY FINANCIAL HIGHLIGHTS

04

REVENUE & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

In ₹ Mn

34.5%

33.9%

8,798

78.2 %

4,938

Q3 FY21

Q3 FY22

Revenues grew by 78.2% YoY to ₹ 8,798 mn in Q3 FY22 led by strong volume growth across geographies & better product mix & price realisation

Gross profit grew by 75% YoY to ₹ 2,984 mn in Q3 FY22. Gross margin during Q3 FY22 stood at 33.9%, which is marginally impacted by higher freight costs.

22.8%

97.1 %

2,009

20.6%

1,019

15.7%

15.4%

74.9 %

1,358

776

111.6 %

11.6%

1,022

9.8%

483

Q3 FY21

Q3 FY22

Q3 FY21

Q3 FY22

Q3 FY21

Q3 FY22

EBITDA grew by 97.1% YoY from ₹ 1,019 mn in Q3 FY21 to ₹ 2,009 mn in Q3 FY22

EBITDA margin expanded by 220 bps YoY to 22.8% in Q3 FY22 driven by economies of scale , effective cost management marginally setted off by higher freight cost.

PBT grew by 74.9% YoY from ₹ 776 mn in Q3 FY21 to ₹ 1,358 mn in Q3 FY22 led be better operating leverage, however, it was partly impacted by higher depreciation and forex loss in Q3 FY22 vis-à-vis forex gain in Q3 FY21.

PAT surged by 111.6% YoY from ₹ 483 mn in Q3 FY21 to ₹ 1,022 mn in Q3 FY22

PAT margin expanded by 184 bps YoY to 11.6% in Q3 FY22 mainly due to lower effective tax rates (24.7% in Q3 FY22 vs. 37.8% in Q3 FY21)

* EBITDA excluding IA & IAUD write-off (₹ 70.1 mn in Q3 FY22, ₹ 56.9 mn in Q3 FY21)

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

9M FY22: KEY FINANCIAL HIGHLIGHTS

05

REVENUES & GM

EBITDA & EBITDA MARGIN *

PBT & PBT MARGIN

PAT & PAT MARGIN

In ₹ Mn

32.0%

30.8%

21,453

13,075

64.1 %

16.0%

2,092

19.2%

10.9%

11.4%

96.6 %

4,113

71.0 %

2,438

1,425

8.0%

1,723

80.8 %

7.3%

953

9M FY21

9M FY22

9M FY21

9M FY22

9M FY21

9M FY22

9M FY21

9M FY22

Revenues grew by 64.1% YoY to ₹ 21,453 mn in 9M FY22 led by strong volume growth across geographies & strong product mix

Gross profit grew by 57.8% YoY to ₹ 6,608 mn in 9M FY22. Gross margin during 9M FY22 stood at 30.8% , which is marginally impacted by higher freight cost.

EBITDA grew by 96.6% YoY from ₹ 2,092 mn in 9M FY21 to ₹ 4,113 mn in 9M FY22

EBITDA margin expanded by 317 bps YoY to 19.2 % in 9M FY22 driven by economies of scale & effective cost management , which is marginally impacted by higher freight costs.

PBT grew by 71.0% YoY from ₹ 1,425 mn in 9M FY21 to ₹ 2,438 mn in 9M FY22 led by better operating leverage, partly impacted by higher depreciation & forex loss in 9M FY22 vs forex gain in 9M FY21

PAT surged by 80.8% YoY from ₹ 953 mn in 9M FY21 to ₹ 1,723 mn in 9M FY22

PAT margin expanded by 74 bps YoY to 8.0 % in 9M FY22 mainly due to lower effective tax rates (29.3% in 9M FY22 vs. 33.1% in 9M FY21)

* EBITDA excluding IA & IAUD write-off (₹ 114.2 mn in 9M FY22, ₹ 86.5 mn in 9M FY21)

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

Q3 & 9MFY22: REGIONWISE REVENUE BRIDGE

06

Q3 FY22 REGIONWISE REVENUE BRIDGE

9M FY22 REGIONWISE REVENUE BRIDGE

In ₹ Mn

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

Q3 & 9MFY22: SEGMENTWISE HIGHLIGHTS

07

Q3 FY22 YoY ANALYSIS: REVENUE BREAKUP

9M FY22 YoY ANALYSIS: REVENUE BREAKUP

In ₹ Mn

7,233

4,022

8,798

17,605

4,938

10,537

21,453

13,075

1,565

916

3,848

2,538

Agrochemicals

Non-Agrochemicals

Total

Agrochemicals

Non-Agrochemicals

Total

Q3 FY21

Q3 FY22

9M FY21

9M FY22

➢ Agrochemicals revenues during Q3 FY22 grew by 79.8%

➢ Agrochemicals revenues during 9M FY22 grew by 67.1%

YoY

YoY

➢ Non-Agrochemicals revenues during Q3 FY22 grew by

➢ Non-Agrochemicals revenues during 9M FY22 grew by

70.9% YoY ➢ Revenue Mix:

51.6% YoY ➢ Revenue Mix:

Agrochemicals : Non-Agrochemicals mix stood at 82:18 in Q3 FY22 as against 81:19 in Q3 FY21

Agrochemicals : Non-Agrochemicals mix stood at 82:18 in 9M FY22 as against 81:19 in 9M FY21

Q3 FY22: AGROCHEMICALS BUSINESS DEEP DIVE

08

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

Q3 FY21: Agrochemicals Revenues : ₹ 4,022 Mn

In ₹ Mn

[42%]

[34%]

[43%] [43%]

[42%] [36%]

[14%]

[10%]

[8%] [14%]

[7%]

[7%]

3 3 4

, I

A

Q3 FY22: Agrochemicals Revenues : ₹ 7,233 Mn

5 2 4

, I

A

➢ Q3 FY22 Revenue Growth:

Europe: 123.5%, NAFTA: 82.3%, LATAM 27.1% & RoW: 5.3%

➢ Formulation: AI Mix Q3 FY22 – 94:6 Q3 FY21 – 89:11

➢ Product Mix updates: Herbicides continues to command 50.1% of revenues in Q3 FY22 & 50.4% of revenues in Q3 FY21

9M FY22: AGROCHEMICALS BUSINESS DEEP DIVE

09

REGION WISE

FORMULATION VS. AI

PRODUCT WISE

9M FY21: Agrochemicals Revenues : ₹ 10,537 Mn

In ₹ Mn

[57%] [48%]

[26%]

[32%]

[11%]

[11%]

[6%]

[9%]

5 9 8

, I

A

9M FY22: Agrochemicals Revenues : ₹ 17,605 Mn

[44%]

[45%]

[38%]

[34%]

[15%] [11%]

[7%]

[6%]

8 9 2 , 1

, I

A

➢ 9M FY22 Revenue Growth:

Europe: 51.9%, NAFTA: 96.5%, LATAM 87.2% & RoW: 22.0%

➢ Formulation: AI Mix 9M FY22 – 93:7 9M FY21 – 92:8

➢ Product Mix updates: Herbicides continues to command 49.8% of revenues in 9M FY22 & 50.0% of revenues in 9M FY21

Q3 FY22: NON-AGROCHEMICAL BUSINESS DEEP DIVE

10

REVENUE BREAKUP: REGIONWISE

In ₹ Mn

Q3 FY21: Non-Agrochemicals Revenues : ₹ 916 Mn

Q3 FY22: Non-Agrochemicals Revenues : ₹ 1,565 Mn

[50%] [45%] [45%]

[31%]

[29%]

[31%]

[16%]

[14%] [16%]

[8%]

[7%] [8%]

[44%]

[50%]

[38%]

[30%]

[15%] [15%]

[3%]

[5%]

➢ NAFTA grew by 51.3% in Q3 FY22 to ₹ 692 mn ➢ Europe grew by 127.4% in Q3 FY22 to ₹ 595 mn ➢ RoW grew by 80.0% in Q3 FY22 to ₹ 236 mn ➢ LATAM degrew by 36.0% in Q3 FY22 to ₹ 42 mn

9M FY22: NON-AGROCHEMICAL BUSINESS DEEP DIVE

11

REVENUE BREAKUP: REGIONWISE

In ₹ Mn

9M FY21: Non-Agrochemicals Revenues : ₹ 2,538 Mn

9M FY22: Non-Agrochemicals Revenues : ₹ 3,848 Mn

[46%] [43%]

[34%]

[32%]

[17%]

[16%]

[6%]

[6%]

[48%]

[46%]

[29%]

[33%]

[18%]

[17%]

[5%]

[4%]

➢ NAFTA grew by 54.0% in 9M FY22 to ₹ 1,780 mn ➢ Europe grew by 54.2% in 9M FY22 to ₹ 1,251 mn ➢ RoW grew by 58.1% in 9M FY22 to ₹ 648 mn ➢ LATAM grew by 5.1% in 9M FY22 to ₹ 169 mn

9M FY22: WORKING CAPITAL UPDATE

12

WORKING CAPITAL DAYS*

NET WORKING CAPITAL DAYS

129

101

99

84

92

104

71

72

9M FY21

9M FY22

9M FY21

9M FY22

Inventory Days

Receivables Days

Creditors Days

➢ Net working capital days stood at 72 days in 9M FY22

* Calculated on average inventory, receivables and creditors

13

Financial Performance

Q3 & 9M FY22: CONSOLIDATED PROFIT & LOSS STATEMENT

14

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 ₹

108.4

936.3

2,009.2 22.8%

In ₹ Mn

Q3 FY22 Q3 FY21

YoY% 9MFY22

9M FY21

YoY% FY21

8,798.1

4,938.1

78.2% 21,452.7

13,074.7

64.1% 23,956.1

5,814.3

3,233.0

79.8% 14,845.1

8,888.1

67.0% 16,359.6

2,983.8

1,705.1

75.0%

6,607.5

4,186.6

57.8%

7,596.5

33.9%

34.5% (61 bps)

32.0% (122 bps)

30.8%

314.4

96.6

12.2%

254.6

646.1

44.9%

2,294.4

1,926.4

23.5%

19.1%

31.7%

373.2

3,054.8

1,019.2

20.6% 220 bps

97.1% 4,113.0 19.2%

2,092.0

96.6% 16.0% 317 bps

4,551.7

19.0%

55.5

(125.4)

N.A.

72.4

(330.3)

N.A.

(198.9)

590.4

404.3

46.0%

1,736.0

1,182.2

46.8%

1,704.4

4.3

69.1

4.5

(2.9%)

97.4 (29.0%)

14.8

262.2

20.1

(26.0%)

291.8

(10.1%)

1,357.9

776.2

74.9%

2,437.7

1,425.4

71.0%

336.0

293.3

14.6%

714.9

1,022.0

483.0 111.6%

1,722.9

11.6%

11.3

9.8% 184 bps

5.4 111.8%

8.0%

19.1

472.5

952.9

7.3%

10.6

51.3%

80.8%

74 bps

80.9%

27.7

459.4

3,094.5

802.4

2,292.2

9.6%

25.4

* EBITDA excluding IA & IAUD write-off (₹ 70.1 mn in Q3 FY22, ₹ 56.9 mn in Q3 FY21, ₹ 114.2 mn in 9M FY22, ₹ 86.5 mn in 9M FY21 and ₹ 383.2 mn in FY21)

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

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 2,645 registrations* [2,355 registrations - Formulations and 290 registrations - Active Ingredients (AIs)]. Additionally, it has filed 1,099 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 December, 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

KEY FINANCIAL PERFORMANCE INDICES

18

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

19

KEY INSTITUTIONAL INVESTORS – 31ST DEC 2021 % HOLDING

MARKET DATA

AS ON 19TH JAN 2022

HDFC MF

DSP MF

9.20%

3.53%

Market capitalization (INR Mn)

33,264.3

Price (INR)

No. of shares outstanding (Mn)

Face Value (INR)

368.7

90.2

10.0

52 week High-Low (INR)

387.1 – 262.0

SHAREHOLDING – 31ST DEC 2021

SHARE PRICE PERFORMANCE

Public 11.43%

DII 12.75%

FII 1.00%

Promoter 74.82%

390

370

350

330

310

290

270

250

Source: BSE

Jan-21

Apr-21

Jul-21

Oct-21

Jan-22

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

➢ Investing in preparing dossiers and seeking registrations in own name

04

Focus on Operational Efficiencies

➢ Accelerated focus on revenue generating investments

➢ Margin improvements ➢ Better cost management and eliminate NVAs

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