NAVINFLUOR

PADMANABH MAFATLAL GROUP Creating value. Sharing value. May 07, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East}, Mumbai 400001 Mumbai 400051 Scrip Code: 532504 Symbol: NAVINFLUOR EQ Dear Sir/ Madam, Sub.: Investor Presentation for Q4 & FY 2021-22 In accordance with Regulation 30 read with Schedule Ill of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Investor Presentation for the Quarter and Financial Year ended March 31, 2022 (04 and FY 2021-22} enclosed herewith. This intimation is also being made available on the Company's website www.nfil.in. Kindly take this intimation on your record. Thanking You, Yours faithfully, For NAVIN FLUORINE INTERNATIONAL LIMITED Niraj B. Mankad President Legal and Company Secretary Encl.: as above Navin Fluorine International Limited 602, 6th Floor, Natraj By Rustomjee, 194, M.V. Road & Western Express Highway, Near Kanakia 351 Building, Andheri (East), Mumbai 400069 India. T: +91 22 6650 9999 F: +91 22 6650 9800 E: info@nfil.in W: www.nfil.in CIN NO : L24110MH1998PLC115499 Navin Fluorine International Limited Growing responsibly Investor Presentation – May 2022 Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Navin Fluorine International Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may considermaterial. Any liabilityin respect of thecontents of, or any omissionfrom, thisPresentation isexpresslyexcluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and theCompany isnot responsiblefor suchthirdparty statements and projections. 2 Sustainable Growth in Performance in FY22 Growing responsibly FY22 – Performance Highlights Record revenues achieved in Operating Revenue +24% High Value Businesses Rs. 1403.6 crores 863 732 +18% Operating EBITDA s t +14% h Rs. 355.4 crores g FY21 FY22 i 2 l h Margin at 25.3 % 2 FY22 Revenue Contribution g Y i H F 61% Y Operating PBT +15% o Contribution Y from Rs. 309.5 crores High Value Businesses Margin at 22.1% High Value Legacy On Standalone basis 4 Delivered strong Growth with Sustained margins High Value Businesses Operating Revenue +23% Rs. 398.4 crores 247 207 + 20 % Operating EBITDA s t + 14 % h Q4FY21 Q4FY22 Rs. 95.8 crores g 2 i 2 l h Margin at 24.0% Y Q4FY22 Revenue Contribution g F i H 4 Q 62% Y Operating PBT + 15% o Contribution Y from Rs. 84.0 crores High Value Businesses Margin at 21.1% High Value Legacy On Standalone basis 5 Sustainable Performance in FY22 (Rs. Crs) Operating EBITDA High Value Businesses Legacy Businesses Total Revenue Margin 27.4% 25.3% 863 540 1,404 355 732 311 1,133 401 FY21 FY22 Operating PBT FY21 FY22 FY21 FY22 FY21 FY22 Margin 23.7% 22.1 % 310 Specialty Chemicals Sustainable growth Strong set of growth 269 crossed Rs. 500 Crs momentum in High Value opportunities, especially milestone and Legacy Businesses in High Value Businesses FY21 FY22 On Standalone basis 6 High Value and Legacy business grew sequentially (Rs. Crs) Operating EBITDA High Value Businesses Legacy Businesses Total Revenue Margin 26.0% 26.7% 24.0% 98 96 84 247 155 398 151 367 207 212 324 117 Q4FY21 Q3FY22 Q4FY22 Operating PBT Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Margin 22.5% 23.6% 21.1% 87 84 Specialty Business 73 continues to deliver Margins impacted largely strong performance due to higher input costs backed by strong and employee costs partnerships On Standalone basis Q4FY21 Q3FY22 Q4FY22 7 Business Vertical - Specialty Chemicals Revenues (Rs. Crs) FY22 Highlights 159 566 131 453 Achieved record quarterly and annual revenues Strong pipeline of growth opportunities, especially in agrochemicals, driven by principles of 3P : Product, Q4FY21 Q4FY22 FY21 FY22 Platform & Partnership Price hike initiated to offset high input costs 49% 51% FY22 India International 8 Business Vertical - CRAMS Revenues (Rs. Crs) FY22 Highlights 88 298 279 76 Achieved record annual sales in FY22 Focus on expanding project pipeline and further diversifying Q4FY21 Q4FY22 FY21 FY22 customer base 0% Debottlenecking of CGMP3 approved on the back of robust opportunity pipeline FY22 100% India International 9 Business Vertical - Inorganic Fluorides Revenues (Rs. Crs) FY22 Highlights 71 274 59 Achieved record annual sales driven by pricing 193 Good traction seen from end user segments especially Q4FY21 Q4FY22 FY21 FY22 in India 9% Optimized sales mix between Domestic & International market for better profitability FY22 91% India International 10 Business Vertical - Refrigerant Business Revenues (Rs. Crs) FY22 Highlights 80 266 208 Growth in profitability was driven by significant price 58 increase despite higher input costs Exports sales impacted due to higher logistics cost Q4FY21 Q4FY22 FY21 FY22 Sales into Non-emissive applications continues to 40% look robust FY22 60% India International 11 Financial Performance Growing responsibly Standalone Profitability Statement Particulars (Rs. Crs.) Q4 FY22 Q4 FY21 Y-o-Y Change % Q3 FY22 Q-o-Q Change % FY22 FY21 Y-o-Y Change % Net Revenue from Operations 398.4 324.0 23% 367.0 9% 1,403.6 1,133.1 24% Raw Material 189.9 153.2 162.0 638.3 511.0 Employee Expenses 39.4 29.5 42.6 153.3 116.2 Other Expenses 73.3 57.1 64.2 256.7 195.1 Operating EBITDA 95.7 84.3 14% 98.1 -2% 355.4 310.8 14% Operating EBITDA Margin 24.0% 26.0% -197 Bps 26.7% -271 Bps 25.3% 27.4% -211 Bps Interest Expenses 0.6 0.6 0.4 1.7 1.4 Depreciation 11.2 10.6 11.2 44.2 40.7 Operating PBT 84.0 73.1 15% 86.5 -3% 309.5 268.7 15% Operating PBT Margin 21.1% 22.6% -146 Bps 23.6% -249 Bps 22.1% 23.7% -166 Bps Other Income 14.1 19.7 7.2 37.5 74.5 Exceptional items 0.0 66.2* 0.0 0.0 66.2* Profit before tax 98.1 159.0 93.7 347.0 409.5 Tax 19.4 37.3 24.6 80.6 110.3 Profit After Tax 78.7 121.7 -35% 69.2 14% 266.4 299.2 -11% (Loss) from Associates and joint ventures (net) 0.0 0.0 0.0 0.0 0.0 Profit for the period 78.7 121.7 -35% 69.2 14% 266.4 299.2 -11% Items that will not be reclassified to Profit & Loss (net of tax) -0.2 0.8 0.1 -0.8 -0.1 Total Comprehensive income for the Period 78.5 122.5 -36% 69.3 13% 265.7 299.1 -11% *Exceptional Items include: (a) Gain of Rs. 31.4 crson account of sale of shares (net of incidental expenses) held in Convergence Chemicals Private Limited, the Joint Venture Company, including gain for giving up lease rights in land. (b) Gain of Rs. 34.83 crson account of giving up lease rights in land situated at Dahejto Navin Fluorine Advanced Sciences Limited, the wholly owned subsidiary of the Company 13 Standalone Balance Sheet ASSETS (Rs. Crs.) 31-Mar-22 31-Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) 31-Mar-22 31-Mar-21 Non-current assets 1023.6 861.4 EQUITY 1864.2 1650.1 Property, Plant and Equipment 372.9 347.8 Equity Share Capital 9.9 9.9 Capital work-in-progress 25.9 36.5 Other Equity 1854.3 1640.2 Right-of-use Assets 14.6 13.4 Investment Property 40.7 41.5 Goodwill 0.0 0.0 Non-Current Liabilities 55.5 52.1 Other Intangible Assets 0.4 0.7 Financial liabilities Investment in Subsidiaries, Associate & JV 503.4 353.4 (i) Borrowings 0.0 0.0 Financial Assets (ii) Financial Liabilities / Lease Liabilities 12.1 10.3 (i) Investments 13.2 12.4 Provisions 13.2 11.6 (ii) Loans 2.9 5.3 (iiI) Other Financial Assets 16.2 17.3 Deferred Tax Liabilities (Net) 16.7 16.7 Non-current tax assets 27.4 28.8 Other non-current liabilities 13.5 13.5 Other non-current assets 6.0 4.3 Current liabilities 204.1 164.2 Financial Liabilities Current assets 1100.3 1005.0 (i)Lease Liabilities 3.9 4.1 Inventories 229.5 154.3 (ii) Borrowings 0.0 0.0 Financial Assets (i) Investments 102.2 84.5 (iii) Trade Payables 141.6 102.7 (ii) Trade receivables 352.1 275.9 (iv) Other Financial Liabilities 18.2 20.6 (iii) Cash and cash equivalents 73.5 76.1 Contract Liabilities 1.2 3.0 (iv) Bank balances other than (iii) above 4.7 312.8 Provisions 4.8 3.9 (v) Loans 298.7 1.9 Current Tax Liabilities (Net) 9.2 7.7 (vi) Others financial assets 3.0 62.9 Other Current Liabilities 25.1 22.3 Other Current Assets 36.6 36.6 TOTAL ASSETS 2123.9 1866.4 TOTAL EQUITY AND LIABILITIES 2123.9 1866.4 14 Standalone Cashflow Statement Particulars (Rs Crs.) 31-Mar-22 31-Mar-21 (A) Cash flow from operating activities Profit before tax 347.0 409.5 Adjustments for noncash items 17.0 -64.7 Operating profit before working capital changes 364.0 344.8 Working capital adjustments -46.7 -67.6 Cash flows generated from operating activities 317.3 277.2 Income taxes paid (net of refunds) -80.7 18.6 Net Cash flows generated from operating activities (A) 236.6 295.8 Net Cash flows generated from investing / capex activities (B) -181.2 -345.3 Net Cash flows generated from financing activities (C) -58.0 -43.6 Net Cash Increase/(Decrease) -2.6 -93.1 15 Other Income Built-up Q4 FY22 (Rs. Crs) Q4 FY21 (Rs. Crs) 14.12 19.70 -0.38 -0.60 18.30 -0.80 -1.69 12.05 Reported One Off Gain MTM Gain Adjusted Reported One Off Gain MTM Gain Adjusted Other Income Other Income Other Income other income * One-Off Gain is towards Sale of Investments On Standalone basis 16 Consolidated Profitability Statement Particulars (Rs. Crs.) Q4 FY22 Q4 FY21 Y-o-Y Change % Q3 FY22 Q-o-Q Change % FY22 FY21 Y-o-Y Change % Net Revenue from Operations 408.9 336.4 22% 379.0 8% 1,453.4 1,179.4 23% Raw Material 196.7 160.7 168.2 665.6 537.4 Employee Expenses 47.3 36.9 46.9 181.5 141.7 Other Expenses 70.7 53.3 65.4 251.4 191.0 Operating EBITDA 94.3 85.5 10% 98.6 -4% 354.8 309.3 15% Operating EBITDA Margin 23.0% 25.4% -238 Bps 26.0% -297 Bps 24.4% 26.2% -181 Bps Interest Expenses 0.6 0.8 0.4 1.9 1.8 Depreciation 11.9 11.6 12.1 47.9 44.2 Operating PBT 81.7 73.2 12% 86.1 -5% 305.0 263.3 16% Operating PBT Margin 20.0% 21.8% -177 Bps 22.7% -273 Bps 21.0% 22.3% -134 Bps Other Income 12.4 22.0 7.5 39.2 79.0 Exceptional items 0.0 15.5* 0.0 0.0 15.5* Profit before tax 94.1 110.7 93.6 344.2 357.9 Tax 19.0 37.5 24.8 81.2 110.8 Profit After Tax 75.2 73.2 3% 68.8 9% 263.1 247.1 6% (Loss) from Associates and joint ventures (net) 0.0 1.6 0.0 0.0 10.5 Profit for the period 75.1 74.8 0% 68.8 9% 263.1 257.5 2% Items that will not be reclassified to Profit & Loss (net of tax) -0.5 1.1 0.3 -1.2 2.2 Total Comprehensive income for the Period 74.6 75.9 -2% 69.1 8% 261.8 259.7 1% *Exceptional Items include gain of Rs. 15.51 crson account of sale of shares (net of incidental expenses) held in Convergence Chemicals Private Limited, the Joint Venture Company, including gain for giving up lease rights in land 17 Consolidated Balance Sheet ASSETS (Rs. Crs.) 31-Mar-22 31-Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) 31-Mar-22 31-Mar-21 Non-current assets 1366.2 702.8 EQUITY 1844.2 1633.9 Property, Plant and Equipment 377.5 353.7 Equity Share Capital 9.9 9.9 Capital work-in-progress 742.1 94.9 Other Equity 1834.3 1624.0 Right-of-use Assets 37.5 44.0 Investment Property 52.8 53.9 Goodwill 87.8 87.8 Non-Current Liabilities 157.3 61.6 Other Intangible Assets 0.5 0.8 Financial liabilities Investment in Subsidiaries, Associate & JV 0.8 0.8 (i) Borrowings 100.0 Financial Assets (ii) Lease Liabilities 10.0 15.6 (i) Investments 13.2 13.8 Provisions 13.7 11.8 (ii) Loans (iiI) Other Financial Assets 19.1 18.2 Deferred Tax Liabilities (Net) 20.1 20.7 Non-current tax assets 29.0 30.8 Other non-current liabilities 13.5 13.5 Other non-current assets 6.0 4.3 Current liabilities 383.9 202.0 Financial Liabilities Current assets 1019.3 1194.7 (i)Lease Liabilities 6.3 7.0 Inventories 257.5 180.4 Financial Assets (ii) Borrowings 4.5 2.5 (i) Investments 104.2 84.5 (iii) Trade Payables 146.5 107.4 (ii) Trade receivables 357.7 284.1 (iv) Other Financial Liabilities 168.6 31.4 (iii) Cash and cash equivalents 75.7 131.9 Contract Liabilities 1.3 3.0 (iv) Bank balances other than (iii) above 20.1 412.0 Provisions 5.4 4.2 (v) Loans 0.5 0.0 Current Tax Liabilities (Net) 9.2 8.1 (vi) Others financial assets 5.9 7.0 Other Current Assets 197.7 94.9 Other Current Liabilities 42.1 38.3 TOTAL ASSETS 2385.5 1897.5 TOTAL EQUITY AND LIABILITIES 2385.5 1897.5 18 Consolidated Cashflow Statement Particulars (Rs Crs.) 31-Mar-22 31-Mar-21 (A) Cash flow from operating activities Profit before tax 344.2 357.8 Adjustments for noncash items 19.0 -12.4 Operating profit before working capital changes 363.2 345.4 Working capital adjustments -210.4 -125.5 Cash flows generated from operating activities 152.9 219.9 Income taxes paid (net of refunds) -78.1 17.4 Net Cash flows generated from operating activities (A) 74.8 237.3 Net Cash flows generated from investing / capex activities (B) -172.4 -237.1 Net Cash flows generated from financing activities (C) 41.5 -45.1 Net Cash Increase/(Decrease) -56.1 -44.9 19 Consistent Dividend Performance Dividend as % of Face Value Robust Dividend Payout Special 550% 550% 550% ✓ ContinuousDividendover12 years Dividend Final of 150% Interim + ✓ Special Dividend of 600% on FV of Special 150% Rs. 10 in FY12 Dividend of 75% 390% 300% 300% + 350% ✓ Special Divided of 75% on FV of Rs. Special 10 in FY17 Dividend of 200% 600% + 240% 180% ✓ Special of 150% on FV of Rs. 2 in 210% 400% FY18 150% 150% 150% 160% 160% 130% 140% 110% 250% 250% 75% 85% 65% 75% 85% 85% 190% 170% 100% 110% 65% 65% 85% 75% 75% 75% FY10 FY11 FY12* FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 22% 24% 37% 40% 36% 38% 29% 28% 33% 31% ~30%* ~23%** 20% ` * Adjusted for excess tax provisions for earlier years Pay out Ratio = (Dividend + DDT) / PAT ** -Adjusted for exceptional gain on sale of shares in Convergence Chemicals Pvt. Ltd. and gain on account of giving up lease rights in land situated at Dahejto NavinFluorine Advanced Sciences Ltd., the wholly owned subsidiary of the Company 20 NFIL at glance Manufacturing plants strategically located closertomajor ports Strong Clientele base in India & abroad, including Global Innovators One of Largest Integrated Specialty Fluorochemical Companyin India Over 50 years of expertise in Handling Fluorine Built “India’s only plant with high pressure fluorination capabilities with cGMP compliance” for CRAMSBusiness Pioneers of Refrigerant Gas manufacturing in India “RESPONSIBLE CARE” certification 22 Integrated Business Model • Chemical Complex at Surat spread over • Backward integration for Raw material 135 acres, houses Refrigerant, Inorganic through 25% JV partner in the only Fluorides& SpecialtyChemicalsPlants Fluorspar beneficiation company in India • cGMP Compliant facility for CRAMS in • Diversified sourcing of Fluorspar away Dewas from China • New Greenfield Investment coming up in Dahej Integrated Business Model • Pioneered Manufacturing of Refrigerant • State-of-the-art R&D centre – Navin Gases in India Research Innovation Centre at Surat • Over 45 years of experience in handling • DSIR approved R&D Centre Fluorine • Supports in product addition & process • Extensive expertise focusing on specialty efficiency in all business units fluorine chemistry • R&D strength augmented by Manchester Organics Acquisition 23 Our Delivery Revenues (Rs. Crs) Revenue Contribution (%) FY2011 FY2022 1,404 Commenced Specialty Speciality Chemicals 27 % 40 % 11.3 % Chemicalsin 2000 431 11Y CAGR Commenced CRAMS 0 % 21 % CRAMS FY11 FY22 business in 2011 Net Profit (Rs. Crs) 266 Inorganic Fluorides 18 % 20 % 12.6 % Inorganic Fluorides & Refrigerants are 72 11Y CAGR traditional business since 1967 55 % 19 % FY11 FY22 Refrigerants *Figures from 2016-17 to 2020-21 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable * CRAMS business generating revenue since FY13 and Excludes Revenue from Dahej Operations of Rs. 55.68 Crstill 30th November 2017 for FY18 24 Reinforcement of Trust Delivering on the 3P Strategy (Product, Platform and Partnerships) through New Capex Programs $410 Mn Multi Year Contract in High Performance Product (HPP) Launch of new products in agrochemicals through Multi-Purpose Plant (MPP) Beginning of New Partnership in agrochemicals backed by multi year supply contract Manufacturing and supply of a new Fluoro speciality molecule covering all three business drivers : 3 P’s - Product, Platform & Partnerships 25 Capacity Expansion - High Performance Product (HPP) Key Highlights Entered into a $410 million contract with Honeywell International Inc. for manufacture and supplyof a High-Performance Product(HPP) in the fluorochemicalspace $410 Mn $61.5 Mn Project will be executed through wholly owned subsidiary Navin Fluorine Advanced (Rs. 2,800 crs) (Rs. 436 crs) SciencesLimited(NFASL) at Dahej in the stateof Gujarat Contract Signed Capex required with Global Investing $51.5mn (Rs. 365 crs) for dedicated manufacturing facility and ~$10mn (Rs.71 Company crs) forcaptivepowerplant 7 Years The product is not part of the Navin Fluorine’s existing product portfolio and is a new set of opportunitiesfor applicationof fluorineforcompletelynew vertical Contract Period; Sales will be evenly Willmanufacture bothintermediate & final product staggered Intermediate can be used for multi-product manufacturing, currently the contract is for one ROC & product Q1 FY23 Margins Expected Company level Commencement of EBIDTA & ROC for this High performance Capex to be funded Through wholly Royalty free access Supplies project product in through internal owned subsidiary to technology fluorochemical space accruals & debt (NFASL) 26 Capacity Expansion - Multi-Purpose Plant (MPP) Other Key Points Rs. 195 crores Rs. 260 – 280 crores • Project will be executed through wholly owned subsidiary Navin Fluorine Advanced Sciences Limited Capex to be funded (NFASL) at Dahej in the state of Gujarat Expected peak by internal accruals annual revenue & debt • This investment will lay foundation for the next phase of growth of our specialty chemicals business. 1.35x – 1.45x Fluorochemical space • It will help enhance our product offerings and strengthen at peak Products our customer relationships along with providing building blocks for future growth Asset Turnover New Products • Margins and return ratios at company levels. Capacity is Portfolio expected to come on stream during H1 of FY23 Work at site progressing well 27 Multi year agreement - Agro-chemical fluoro-intermediate Navin Fluorine signs Rs. 800 crores multi year agreement for supply of key agro-chemical fluoro-intermediate Rs. 800 crores 5 years Strengthen our Product Offerings Agreement Value Agreement Term Strengthen Customer Relationship Rs. 125 crores End of FY23 Investment Supply Provide building block for future growth commencement ( incl. 14 crores for ETP) Navin Fluorine Advanced Sciences Limited (‘NFASL’), a wholly owned subsidiary of the Company, has entered into a multi-year agreement with a large multinational company for manufacture and supply of a key agro-chemical fluoro-intermediate The facility will be located at Dahej, in the state of Gujarat and will be funded through a mix of internal accruals and debt 28 New Capex - A New Fluoro Speciality Molecule “ The project will strengthen the New Capacity addition Capex to be funded product offerings as well as Rs. 540 crs key account relationship along to cater to multiple through a mix of internal with providing building blocks segments Investment accruals and debt forfuture growth ” Peak Revenue potential Capacity to come on of Rs. ~600 crs per stream by end of annum CY2023 Navin Fluorine Advanced Sciences Limited (‘NFASL’), a wholly owned subsidiary of the Company, has entered into a multi-year contract with a large multinationalcompanyformanufacture and supplyof a key FluoroSpecialtyChemicals. 29 Core Business Strategy Valuable and Presence into High- Customer’s clear Dependable demand specialized choice - Strong pillar Fluorochemical product basket of Partnership Company Increase share of our High Innovation & Change growth Investment In MPP (Multi Value Business (CRAMS & - Moving into the new High- Purpose Plant) – Entering Specialty) which now Performance Product (HPP) into portfolio of new products contributes ~64% of the vertical in the fluorochemicals for next phase of growth Topline space Journey of Transformation continues… 30 ESG represents the cornerstone of our business Growing responsibly Our Approach to Sustainability Approach Environment Social Governance ✓ Robust Internal Controls ✓ Employees ✓ Controlled Growth ✓ Building resilience towards ✓ Customer and Vendors ✓ Balanced Approach climate change ✓ Community ✓ Board of Directors ✓ Reduce our impact on environment and nature ✓ Trust ✓ Audit Discipline ✓ Think Long-Term ✓ Specialisation 32 32 Environmental Declarations Environmental Declarations Environment Approach Adopted reduction at source as one of the Reduced per unit power consumption, which principles comprising a systematic approach translatedintoanestimatedreductionof~2.2 Our environment approach has been of recover, reuse and abatement of million KWH of power per year woven around the elements of environmentalpollution2 (approximately4%) Plan Increased product batch sizes, resulting in a Optimized waste generation through solvent Mitigate reductionofcarbonemissionequivalentto4.7 recycling, waste conversion into by-products lakhsSM3/annumofnaturalgas and novel technologies for energy conservation Adapt Invested in new manufacturing processes Recycled 2000m3/day treated waste-water, Resilience (solvent-freetransformations,continuousflow saving fresh-water consumption; made the reactor system, vapour pressure technology recycled water available for irrigation etc.) purposes Refined wastewater residence time in the Sustained the initiative of sustainable bromine recovery system; eliminated the packaging practices; supplied products in ISO generationof20tonnesofwastewaterloadfor andIBCcontainers treatmentanddisposal UsedgreenerprocessesofHALEXforspecialty Reduced natural gas consumption by 8% molecules; eliminated the use of 26 tonnes of throughfluegasrecycling solvents 33 Social Programme Social Programme Social Approach ✓ Structured induction programme for all ✓ Engaged in bonds with communities for better ‘S’ comprises the role of onboarded employees living; undertook 15 projects benefiting 31,500 people ✓ Trained around safety, health, technical and soft Harmonious industrial skills based on competence mapping - safety ✓ Formed a cross-functional Risk Management Relations training and skill upgradation training was Officetoprotectagainst thepandemic imparted to 850 permanent employees (out of a Diversity total strength of 859) and 910 contractual ✓ Segregated plants within factories into mutually employees (outofa totalstrengthof920) exclusive zones for ease in contact tracing and Inclusion control personnel movement ✓ Made an unambiguous policy declaration for not employing anychildlabour (directlyorindirectly) ✓ Ensured employee and contractor workers’ health and hygiene; provided masks and ✓ Sustained merit-based recruitment with no installed hand sanitizing facilities; periodically discrimination on the basis of race, gender, disinfected the entire factory/office premises religion, colourordisability usingsuitable disinfectants At Navin Fluorine, our people-driven ✓ Provided employees fair access to development ✓ Took an additional special life cover for staff in ferment has progressively enriched, opportunities June2020 forCOVID-19 resulting in sustainable and superior performance. 34 Governance Best Practice Governance Programme Composition of Committees Out of three Members of Nomination Structured policies and processes and Remuneration Committee, two addressed investor grievances were Independent and one Non- Reported NO Executive; Accepted all resolutions proposed ✓ Defaults for repayments, creditors, by the Board to shareholders dividends and statutory dues Out of four Members of the Audit Committee, three were Independent ✓ Auditor qualification against the Employed a rigorous Board evaluation and one Non-Executive Company policy; Board comprised eminent members ✓ Re-statements of financial statements Implemented an active succession All three Members of Stakeholders pipeline for critical roles and the Board Relationship Committee were ✓ Allegations of financial imprudence Independent Carried out an Internal audit through an independent audit firm reporting directly to the Audit Committee Out of three Members of the Corporate Social Responsibility Implemented two ESOP plans Committee,twowere Independent 35 Diversity of thought and experience Mr. Vishad Mafatlal Mr. Mohan Nambiar Mr. Pradip Kapadia Mr. Sunil Lalbhai Chairman Non-Executive Director Independent Director Independent Director He holds a Bachelor of Science Degree in He is a CA with vast experience of 57 years. He is an advocate and solicitor and is a He is a science graduate and holds M. S. degree in Economics from University of He was associated for more than 26 years partner in Vigil Juris, Mumbai and has an Chemistry fom USA and M. S. degree in economic Pennsylvania, Wharton School and has a with the Associated Cement Company Ltd., experience of over 40 years in the legal planningandpolicyfromBostonUniversityofUSA.Heis rich experience of more than two decades including6yearsasitsManagingDirector.He field. He is non-executive director on an industrialist having varied experience of over 29 in the field of Textiles and Chemicals is non-executive director on board of Ion boards of Gokak Textiles Ltd and Mafatlal years in Chemicals and general management. He is industries. Exchange(India)Ltd. IndustriesLtd. Chairman and MD – Atul Limited and is non-executive director on board of Amal Limited, Bombay Dyeing & ManufacturingCo.LtdandPfizerLtd(India) s r o t Mr. Sudhir Mankad Mr. Harish H. Engineer Mr. Atul Srivastave Mrs. Radhika Haribhakti c Independent Director Independent Director Independent Director Independent Director e r He is IAS (Retd.),has served in senior He has bachelor's degree of science and He is a CA with experience of over 35 She is a graduate in commerce from Gujarat University i D positions, both with the Government of diploma in Business Management. He has years in large corporates, in the areas of and postgraduate in management from IIM – India and Government of Gujarat. He is varied experience of over 44 years in the Finance, Accounting, Taxation and Ahmedabad. She has over 30 years of experience in f o non-executive director on boards of banking sector. He retired as an executive Commerce. He is non-executive director Commercial and Investment Banking. She is non- SwarajEnginesLtdandDeepakNitriteLtd director, wholesale banking of HDFC Bank onboardofMafatlalIndustriesLtd. executive director on boards of EIH Associated Hotels , d Ltd. RainIndustriesandICRALtd r a o B Mr. Ashok Sinha Mr. SujalShah Mrs. Apurva Purohit Mr. RadheshWelling Independent Director Independent Director Independent Director Managing Director HeisBTECHinelectricalengineeringfrom Heis aCA with overall experienceofover28 She has post graduate diploma in He is a Mechanical Engineer from National Institute of IIT, Kanpur and post graduate diploma in yearsinthefieldsofvaluations,duediligence, management from IIM Bangalore. She has Technology.MastersofInternationalbusinessfromIIFT, Management from IIM, Bangalore. He has corporate restructuring, audit and advisory. overthreedecadesofexperienceinmedia and MBA from IMD. Lausanne, Switzerland. He has awealthofexperiencefromhisleadership Heisnon-executivedirectoronboardofAmal and entertainment industry. She is non- handled many functions ranging from Innovation to journeyastheChairmanandMDof BPCL. Ltd., Amrit Corp. Ltd., Deepak Fertilisers & executive director on boards of Mindtree Sales & Marketing to Corporate Strategy to Heisnon-executivedirectoronboardofJ. Petrochemicals Corp. Ltd. , Hindoostan Mills Ltd,andL&TtechnologyServicesLtd. Manufacturing,acrossmultiplegeographiesinhiscareer K. Cement Ltd, Tata Power Co. Ltd and Ltd., Ironwood Education Ltd. and Mafatlal spanning24years.Inhispreviousrolehewasatsenior CiplaLtd IndustriesLtd. positions with Laxmi Organic Industries Ltd, and JM HuberCorporation. 36 Balanced Board with Experience and Expertise Board Demographics Board Independence meetings during Highly FY2022 engaged 9 of 12 Board 17 Directors 75% are actively involved in NFIL’s Board Committee strategic transformation Independent 8 66 years median Board director's age 10 of 12 Highly Experienced Board to Separate directors 83% are non-executive chair Committees Chairman & MD Audit Committee CSR Committee Nomination & Stakeholders Remuneration Relationship 2 Women 25% 3 Directors Committee Committee inducted in last 2 Years Directors on the Board Risk Management Committee 37 Deepen respect for contribution to Societal Goals CHILD DEVELOPMENT 5.68 Crores Total CSR expenditure for the year ended March 31,2021 NFIL collaborated with Salaam Balak Trust, an NGO addressing the needs of This includes Rs. 2 Crores for PM cares and street children in Mumbai, covering child development from physical and Rs. 1 Crore each for to CM Relief Funds of Maharashtra, Gujarat and MP medical needs to educational, social, cultural and vocational interventions. The Company provided financial support of monthly grocery to a shelter . HEALTH AND MEDICAL CARE homeinAndheri, Mumbai comprising 70 streetchildren NFIL’s mobile health van covered 20 villages in and around Surat and Dewas, visiting WOMEN EMPOWERMENT around four villages a day. The team comprised doctors and supporting staff who checked villagers for respiratory, gastro-intestinal, fever, muscle-skeletal, ENT, eye, Supported the NGO-Shakti Foundation in Surat in activities relating to dental,skinandchronicailments women empowerment (health, hygiene and skill development in tribal areas of South Gujarat). The Company supported in establishing a sanitary pad FOOD PACKETS DISTRIBUTION manufacturingunit(30,000 pads perday) Supportedpandemicaffectedfamilieswithdailyfoodrationsin Bhatia village,Halpati Vaas near Surat where economically downtrodden families were affected by the SPORT lockdown. In April 2020, distributed 125 food kits (toor dal, chana dal, edible oil, spices,biscuitsetc.)andfoodtoneedyfamilies Supported Olympic Gold Quest to help India fulfill its mission to win Olympic gold medals. The Company funded trainees in shooting, badminton, archery, ADDRESSING THE OLD AND INFIRM boxing, wrestling and athletics. Contributed to the development of old age homes. In August 2020, the Company’s RAINWATER HARVESTING Dewas team visited Basera Vridh Ashram, organising meals for the senior citizens anddonatingitems. SupportedShri Sadguru Seva SanghTrust, dedicatedto blindness Collaborated with Piramal Sarvajal Yojana across six villages in Madhya eradication,withsurgicalandlaboratoryequipmentforcataractsurgery.Donated230 mobile phones to Blind People’s Association of India to facilitate online education in Pradesh (Tong Kalan, Pagrawadi Kalan, Udaynagar, Donta Jagir, Shahpura and Ahmedabad,SuratandBharuch. Kelod) 38 Thank You Note For further information, please contact: Company : Investor Relations Advisors : Navin Fluorine International Ltd. Orient Capital (a division of Link Group) CIN : L24110MH1998PLC115499 Ms. Payal Dave Mr. Basant Bansal +91 9819916314 Chief Financial Officer payal.dave@linkintime.co.in Basant.Bansal@nfil.in www.orientcap.com www.nfil.in 39