GREENPANEL

GPIL/2022-2023 November 8, 2022 The Manager The Manager BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E), Mumbai-400001 Mumbai - 400051 Scrip Code: 542857 Symbol - GREENPANEL Dear Sir/Madam, Sub: Presentation on un-audited financial results for the quarter and half year ended September 30, 2022 Pursuant to the provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed a Presentation on the unaudited Standalone and Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2022. Kindly take the above on record. Thanking You Yours faithfully For GREENPANEL INDUSTRIES LIMITED (Lawkush Prasad) Company Secretary & AVP – Legal ACS:18675 Encl.: As above v Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. Greenpanel Industries Limited (GPL) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2 INDEX Contents Page No. Snapshot of the Company 4 Our performance, Q2 FY2023 5 Overview by MD & CEO 14 Greenpanel Brand’s Financial Health 16 The Journey so far 23 Financial Evolution 32 Capital Structure 38 MDF Business 44 Ply Business 50 Achieved so far 55 3 v A snapshot of our company 1 2 3 Brand vision: We envision to About us: Greenpanel is a Management: Greenpanel is led by maintain our Leadership prominent wood panel player Mr. Shiv Prakash Mittal, Executive Position in the Panel Industry in India with a national Chairman, and Mr. Shobhan Mittal, and supply best quality Panel leadership in Medium Managing Director and CEO, products to our customers. DensityFibreboard (MDF). supported by experienced To be referred as “Pride of professionals and workforce (1910 India, Panel of India” as on March 31 2022). 5 4 Locations: The Company is headquartered in Kolkata (West Bengal), Listing: The Company was supporting offices in Gurgaon and Singapore and state-of-the-art listed on October 23 2019 and manufacturing facilities in Rudrapur (Uttarakhand) and Srikalahasti enjoyed a market (AndhraPradesh);the latter is arguably the largest MDF plant in Asia. capitalisation of ₹ 5,222 crores as on September 30 2022 (NSE closing price of ₹ 425.85). 4 v Domestic MDF performance continued to be good. However, slowdown in the 1 export markets impactedvolumes. Sustained growth (YoY): Revenue 12% 2 EBITDA 8% PAT 8% Steep increase in MDF Performance 3 realisations 28% YoY Highlights Working capital hygiene 4 & Strong Balance Sheet 5 6 Our financial performance in brief 124.35 115.29 456.12 408.50 Q2 FY2022 Q2 FY2023 EBITDA (₹ Crores) 72.46 67.06 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Net Sales Growth (₹ Crores) PAT (₹ Crores) 7 Our financial performance in brief 22.8 22.8 0 bps 5.91 5.47 Q2 FY2022 Q2 FY2023 RoCE - Post Tax(%) 32.5 31.7 Q2 FY2022 Q2 FY2023 Q2 FY2022 Q2 FY2023 Earnings per share (₹) RoCE - Pre Tax (%) 8 v Financial Highlights Q2 FY2023 v/s Q2 FY2022 Key Ratios (%) Q2 FY2023 Q2 FY2022 Gross Margin 58.60 56.50 EBITDA Margin 27.30 28.20 EBIT Margin 23.30 23.50 Net Margin 15.90 16.40 Sales Promotion / Net Sales 0.90 1.10 Employee Expenses / Net Sales 7.90 7.90 Logistics Costs / Net Sales 4.50 4.60 EPS (₹) 5.91 5.47 9 Segment Performance - MDF (Quarter) Particulars Q2 FY2023 Q2 FY2022 Growth Net Sales (₹ Crores) 395.09 335.34 17.80% EBITDA Margin 30.40% 31.40% EBIT Margin 26.00% 26.10% Annual Capacity (CBM) 6,60,000 5,40,000 Production (CBM) 1,22,627 1,28,517 -4.60% Sales Volume (CBM) 1,26,232 1,37,044 -7.90% Capacity Utilisation 74% 95% Blended Realisation (₹/CBM) 31,299 24,446 28.00% Domestic Realisation (₹/CBM) 33,554 27,167 23.50% Export Realisation (₹/CBM) 22,906 18,863 21.40% 10 Segment Performance - MDF (6 Months) Particulars 6M FY 2023 6M FY 2022 Growth Net Sales (₹ Crores) 787.00 589.60 33.50% EBITDA Margin 31.80% 28.80% EBIT Margin 27.50% 23.00% Annual Capacity (CBM) 6,60,000 5,40,000 Production (CBM) 2,55,851 2,50,965 1.90% Sales Volume (CBM) 2,51,260 2,49,779 0.60% Capacity Utilisation 78% 93% Blended Realisation (₹/CBM) 31,322 23,581 32.80% Domestic Realisation (₹/CBM) 33,451 26,434 26.50% Export Realisation (₹/CBM) 23,422 17,454 34.20% 11 Segment Performance - Plywood (Quarter) Particulars Q2 FY2023 Q2 FY2022 Growth Net Sales (₹ Crores) 61.03 73.17 -16.60% EBITDA Margin 7.30% 13.60% EBIT Margin 5.60% 11.70% Annual Capacity (Mn Sqm) 10.50 10.50 Production (Mn Sqm) 1.79 2.42 -26.00% Sales Volume (Mn Sqm) 2.04 2.62 -22.10% Capacity Utilisation 68% 92% Average Realisation (₹/Sqm) 299 279 7.20% 12 Segment Performance - Plywood (6 Months) Particulars 6M FY 2023 6M FY 2022 Growth Net Sales (₹ Crores) 131.88 118.45 11.30% EBITDA Margin 9.50% 12.60% EBIT Margin 8.00% 10.40% Annual Capacity (Mn Sqm) 10.50 10.50 Production (Mn Sqm) 4.14 4.03 2.70% Sales Volume (Mn Sqm) 4.56 4.37 4.30% Capacity Utilisation 79% 77% Average Realisation (₹/Sqm) 289 271 6.60% 13 v Overview by MD & CEO “MDF volumes showed decent growth in domestic markets while export markets have slowed down. We look forward to improved performance in future quarters.” 14 v Overview by MD & CEO “MDF sales volumes de-grew by 7.90% YoY; operating margins reduced by 106 basis “Net debt reduced by ₹ 42 crores during Q2 points to 30.40%.” to negative ₹ 59 crores as on 30th September 2022. We had also made payments of Rs 30 crores on MDF Expansion “Plywood volumes de-grew by 22.10% YoY; Project during the quarter” operating margins fell by 635 basis points to 7.30% due to lower volumes and increased raw material costs.” “Widening distribution reach and focus on small urban clusters is supporting sustained volume growth.” “Consolidated operating margins reduced by 96 basis points to 27.30% due to lower plywood volumes and increase in raw “We are optimistic of sustainable growth in material costs.” future quarters." “Working capital investment increased by 10 Shobhan Mittal days YoY to 24 days as on 30th September Managing Director & CEO 2022.” Greenpanel Industries Limited 15 v Part two Greenpanel Brand’s Financial Health Brand acceptance has supported sustained growth 16 v We strengthened realisations across both product lines MDF 28.0 %, Growth in 31,299 average MDF realisations ₹ / cubic meter, Average realization, Q2 FY2023 Plywood 24,446 7.2 299 279 ₹ / cubic meter, %, Growth in ₹ / square meter, ₹ / square meter, Average realization, average Average realization, Average realization, Q2 FY2022 Plywood Q2 FY2023 Q2 FY2022 realisations 17 We widened our margins by building a stronger business We continued to We maintained our remain principally an margins in an MDF-driven company environment of rising raw material 87 costs 55% % of revenues drive from MDF, Q2 FY2023 27.3 YoY growth in PAT IN H1 FY 82 % EBITDA margin, 2023 VS H1 FY Q2 FY2023 % of revenues drive 2022. from MDF, Q2 FY2022 28.2 Note: We are considered % EBITDA margin, the most attractive listed Q2 FY2022 MDF proxy in India 18 We strengthened our working capital hygiene Inventory Working capital Receivables cycle 9 39 24 Days, receivables Days, Total Inventory Days, working capital expressed in days of expressed in days of cycle from resource turnover equivalent, turnover equivalent, Q2 purchase to sales Q2 FY2023 FY2023 receipt, Q2 FY2023 36 11 14 Days, Total Inventory Days, receivables Days, working capital expressed in days of expressed in days of cycle from resource turnover equivalent, Q2 turnover equivalent, purchase to sales FY2022 Q2 FY2022 receipt, Q2 FY2022 19 We utilized our Payables superior performance to 24 draw debt down 202 Days, payables expressed in days of turnover equivalent, ₹ crores, consolidated Q2 FY2023 gross debt, end of Q2 FY2023 33 382 Days, payables expressed in days of ₹ crores, consolidated turnover equivalent, gross debt, end of Q2 Q2 FY2022 FY2022 20 How we MDF capacity Plywood capacity strengthened utilization utilization our liquidity 59.2 MDF PLYWOOD 74% 68% Times or x, interest MDF capacity utilisation, cover, Q2 FY2023 Plywood capacity Q2 FY2023 on enhanced utilisation, Q2 FY2023 capacity 55.0 95% 92% Times or x, interest MDF capacity utilisation, Plywood capacity cover, Q2 FY2022 Q2 FY2022 utilisation, Q2 FY2022 21 Our We enhanced the We enhanced the segment-wise value-added value-added financial growth proportion of our proportion of our business business Superior product mix Superior realisations 4.3% 12% 247 YoY growth in plywood of revenues derived from ₹ per sq m, Average volumes, 6M FY2023 decorative veneers realization for normal (plywood business), plywood variety H1 FY2023 601 0.60% 10% ₹ per sq m, Average YoY growth in MDF of revenues derived from realization for decorative volumes, 6M FY2023 decorative veneers veneer plywood variety (plywood business), H1 FY2022 22 v Part three Brand Greenpanel: The Journey So Far 23 v Industry Overview 5,000 50 3,200 1.75 2021 2026 INDIA CHINA Size of MDF Market in India (₹ Crores) MDF Consumption (in Million CBM) 25 v Industry Overview REGIONAL DEMAND FOR MDF IN INDIA Others 10% West 15% South 45% North 30% 26 v Industry Overview 80 70 50 50 30 20 Plywood market share (%) MDF market share (%) REST OF WORLD INDIA INDIA 2030E REST OF WORLD INDIA INDIA 2030E 27 v Industry Overview 3.50 In India, MDF has penetrated all the regions in terms of market presence and is rapidly advancing in terms of 2.30 both consumer demand as well as production capacity. The production capacity has grown by more than 15x from 0.15 million CBM in 2010 to 2.30 million CBM in 2022. Further, it is expected to witness a CAGR of 20-25% in the period 2021-2026. 0.15 Industry Size (Million CBM) FY2010 FY2022 FY2026E 28 v Where do we stand… Others Greenpanel 7,40,000 6,60,000 Century Action Tesa 2,00,000 4,00,000 Rushil Décor 3,30,000 29 v Where do we stand…  We are now among the top 500 listed companies on NSE based on market capitalisation - Rank as on 31 March 2022 is 396 - Rank as on 31 March 2021 was 573  We are now a “USD 1 billion” company in terms of market capitalisation as on 31st March 2022  Credit ratings for “long term credit facilities” have consistently improved A+ A A- BBB+ FY2020 FY2021 FY2022 FY2023 30 v  Financial Evolution Areas  Capital Structure Highlighted  MDF Business  Ply Business 31 v Financial Evolution 28% 1,58,574 21% 20% 1,00,100 84,710 58,262 FY2019 FY2020 FY2021 FY2022 NET SALES (₹ Lacs) CAGR (%) 33 v Financial Evolution 27.71% 43,939 49% 20.66% 16.53% 15.46% 32% 20,681 25% 14,000 9,005 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 EBITDA VALUE (₹ Lacs) CAGR (%) EBITDA MARGIN (%) 34 v Financial Evolution 36,604 23.08% 13.80% 13,818 8.36% 6.35% 7,084 3,702 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 EBIT VALUE (₹ Lacs) EBIT MARGIN (%) 35 v Financial Evolution 15.17% 62% 24,047 26% 6.87% 5.93% -35% 6,881 1.71% 3,457 1,446 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 NET PROFIT (₹ Lacs) CAGR (%) NET PROFIT MARGIN (%) 36 v Financial Evolution 7,179 19.61 1,964 5.61 2.82 1.18 351 FY2019 FY2020 FY2021 FY2022 FY 2020 FY 2021 FY 2022 Earnings Per Share (₹) Market Capitalisation (₹ Crores) 37 v Capital Structure 23 10 8 6 FY2019 FY2020 FY2021 FY2022 Working Capital Turnover Ratio 39 v Capital Structure GROSS DEBT EQUITY D/E 0.91 D/E 0.85 D/E 0.30 D/E 0.61 28,265 58,651 56,106 44,688 95,165 73,038 64,550 66,164 FY2019 FY2020 FY2021 FY2022 EQUITY (₹ Lacs) GROSS DEBT (₹ Lacs) 40 v Capital Structure NET DEBT EQUITY D/E 0.88 D/E 0.81 D/E 0.51 D/E 0.06 6,023 56,666 53,752 37,462 95,165 73,038 64,550 66,164 FY2019 FY2020 FY2021 FY2022 EQUITY (₹ Lacs) NET DEBT (₹ Lacs) 41 v Shareholding Pattern Shareholding structure (%) 100% 16.44% 17.63% 90% 20.33% 24.53% 80% 10.99% 10.74% 5.84% 4.21% 70% 21.54% 18.53% 18.16% 20.73% 60% 50% 40% 30% 51.03% 53.10% 53.10% 53.10% 20% 10% 0% 15.07.2019 31.03.2020 31.03.2021 31.03.2022 Promoter DII FII / FPI Others 42 v Shareholding 63,467 22,305 19,091 19,607 15.07.2019 FY2020 FY2021 FY2022 Number of Shareholders 43 v MDF Business 87% 69% 60% 47% FY 2019 FY 2020 FY 2021 FY 2022 MDF CAPACITY UTILISATIONS 45 v MDF Business 3,72,530 1,22,512 2,97,372 1,04,903 83,059 2,11,119 1,54,782 42,981 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF SALES VOLUMES - DOMESTIC (CBM) MDF SALES VOLUMES - EXPORTS (CBM) 46 v MDF Business 23,266 1,09,715 15,428 66,325 12,064 47,736 36,711 7,435 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF SALES VALUE - DOMESTIC (₹ Lacs) MDF SALES VALUE - EXPORTS (₹ Lacs) 47 v MDF Business 18,941 17,298 29,451 14,707 14,431 23,718 22,611 22,304 FY 2019 FY 2020 FY 2021 FY 2022 FY2019 FY2020 FY2021 FY2022 MDF REALISATIONS - DOMESTIC (₹/CBM) MDF REALISATIONS - EXPORTS (₹/CBM) 48 v MDF Business 41,136 30.93% 22.94% 18.13% 16.33% 17,979 11,449 7,210 FY2019 FY2020 FY2021 FY2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF EBITDA (₹ Lacs) MDF EBITDA MARGIN 49 v Ply Business 9.30 81% 78% 8.51 8.48 71% 57% 5.68 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD CAPACITY UTILISATIONS PLYWOOD SALES VOLUMES (Mn SQM) 51 v Ply Business 275 25,594 21,546 21,710 14,116 256 251 251 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD SALES VALUE (₹ Lacs) PLYWOOD REALISATIONS (₹/SQM) 52 v Ply Business 2,803 2,702 12.72% 2,552 12.45% 11.84% 1,795 10.95% FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD EBITDA VALUE (₹ Lacs) PLYWOOD EBITDA MARGIN (%) 53 v Achieved so far…  Annual capacity of MDF increased from 540,000 CBM to 660,000 CBM in FY2022 by installation of MAT pre-heating systems  Wax emulsion system installed during the year to reduce Wax consumption in MDF production to the tune of 30%  Term loan from LBBW prepaid to the extent of EUR 9 million in FY2022 that substantially brought down the debt exposure and foreign currency exposure  Greenpanel is the largest exporter of MDF from India and has presence in 16 countries globally 54 Our widened distribution network 2,535 Number of dealers as on 31stMarch 2022 12,500+ Number of retailers as on 31stMarch 2022 17 Branches pan-India Name of physical branches West & Central: Mumbai, Pune, Indore, Ahmedabad South: Bangalore, Hyderabad, Kochi, Coimbatore, Chennai, Vijayawada North: Jaipur, Chandigarh, Lucknow, Ghaziabad, Delhi East: Kolkata, Guwahati 55 Mr. V. Venkatramani Chief Financial Officer Greenpanel Industries Limited Thank Corporate Office: Thapar House, 2nd Floor, 163, S.P. Mukherjee Road, Kolkata - 700 026 Contact: (+91) 97484 00606 / (+91) 033 4084 0600 Email: v.venkat@greenpanel.com you Website: www.greenpanel.com Mr. Gavin Desa / Mr. RishabBarar CDR India Contact: (+91) 022 6645 1237 / 1235 Email: gavin@cdr-india.com/ rishab@cdr-india.com www.greenpanel.com I Connect with us on and 56