SUMICHEM

SCIL/SEC/2023 4th February, 2023 To, BSE Limited, The National Stock Exchange of Listing Department, India Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra East, Mumbai - 400 051 Dear Sirs, Sub: Investor Presentation on Financial Results for the Quarter and nine months ended 31st December, 2022 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith investor presentation on the Financial Results of the Company for the quarter and nine months ended 31st December, 2022. Kindly do the needful to display the same on your website. Thanking you, Yours faithfully, For Sumitomo Chemical India Limited Pravin D. Desai Vice President and Company Secretary Encl: a/a Sumitomo Chemical India Limited Investor Presentation February 2023 Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India 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 what so ever. No offering of securities of the Company will be made except by means ofa 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 consider material. Any liability in respect ofthe contents of, or anyomission from, this Presentation is expressly excluded. 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 the Company is not responsible for such third party statements and projections. 2 Performance Highlights – Quarter & YTD Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) 0% +2% -5% +7% 266 266 127 89 90 120 754 707 37.6% 35.3% 17.9% 16.0% 12.6% 12.0% Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) +15% +19% +23% +19% 1,038 586 430 2,861 903 491 349 2,400 37.6% 36.3% 20.5% 20.5% 14.5% 15.0% 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 Given the seasonality in the business, it is best monitored on an annual basis 4 Performance Highlights – 9MFY23 Key Highlights New Product Launches ✓ At the industry level, overall demand, particularly in the domestic market, was sluggish during the quarter, primarily as a result of a delay in sowing due to the extended monsoons and an Company launched 3 unique proprietary 9(3) products – Sumi Blue increase in channel inventory as a result of a slower offtake during the kharif season. The Diamond, Pyclome and Danitol NXT during the National Level and inventorylevelswerealsohigh,asthelevelofpestinfestationwasrelativelylow RegionalLevelTradeChannelPartners’Meeting ✓ Our domestic volumes growth during the quarter were largely benign due to the challenging environment. However, the decline in demand was partially offset by improved price realizations. Sharp decline in revenue from fungicide segment resulted into modest topline growth ✓ The export growth continues to remain robust, while there are some signs of slowdown in Latin America due to high channel inventory. Recent capacity expansion investments should help sustain this encouraging trend. The export business has witnessed growth of 39% y-o-y in 9MFY23 ✓ 4insecticide,1fungicide,1metalphosphideand3PGRproductslaunchedduring9MFY23 ✓ Our efforts to enhance our product mix, revamp our distribution reach and scaling up our capacitiespositionsustodeliverconsistentresultsinthefuture ✓ The company is taking steps to boost growth in both domestic and international markets. In recent years, we have prioritized filling in the gaps in our portfolio, particularly for certain crops andpests.Weareoptimisticthattheseeffortswillresultinsteadyfuturegrowth The company has recently received registrations for 2 unique proprietary 9(3) products and is in process of commercially launching theseproductsinthemarket 5 Consolidated Profit & Loss Account Statement – Quarter & YTD Particulars (Rs. Crs) Q3 FY23 Q3 FY22 YoY Q2 FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 753.7 707.2 7% 1,121.7 -33% 2,860.8 2,399.5 19% COGS 487.3 441.5 696.7 1,823.2 1,496.6 Gross Profit 266.4 265.7 0% 424.9 -37% 1,037.6 902.9 15% Gross Profit % 35.3% 37.6% -223 bps 37.9% -254 bps 36.3% 37.6% -136 bps Employee Expenses 52.3 51.8 54.3 163.9 151.5 Other Operating Expenses 93.6 87.3 92.6 287.7 260.5 Operating EBITDA 120.4 126.5 -5% 278.0 -57% 586.0 491.0 19% EBITDA Margin 16.0% 17.9% -191 bps 24.8% -881 bps 20.5% 20.5% 2 bps Other Income 13.2 6.2 10.5 28.4 19.4 Depreciation 11.4 11.4 15.2 37.8 33.4 EBIT 122.2 121.3 1% 273.4 -55% 576.6 477.0 21% EBIT Margin 16.2% 17.1% -93 bps 24.4% -815 bps 20.2% 19.9% 27 bps Interest 1.3 1.6 1.4 4.0 5.4 Profit Before Tax 120.9 119.7 1% 272.0 -56% 572.6 471.6 21% PBT Margin 16.0% 16.9% -88 bps 24.2% -821 bps 20.0% 19.7% 36 bps Tax 30.4 30.7 70.5 142.5 122.7 Net Profit 90.5 88.9 2% 201.5 -55% 430.1 348.9 23% Net Profit Margin 12.0% 12.6% -57 bps 18.0% -596 bps 15.0% 14.5% 49 bps Other Comprehensive Income -1.2 0.5 0.3 1.6 0.1 Total Comprehensive income for the period 89.3 89.4 0% 201.7 -56% 431.7 349.0 24% Given the seasonality in the business, it is best monitored on an annual basis 6 Revenue Breakup – YTD Product Breakup Geographic Breakup 7% 7% 8% 0% 8% 1% 0% 0% 8% 2% 10% 4%2% 3%3% 4% 1% 7% 5% 8% 43% 43% 9MFY22 9MFY23 9MFY22 9MFY23 10% 10% 78% 81% 22% 25% Insecticides PGR Fungicides Domestic Japan Europe North America Herbicides Metal Phosphides AND & EHD* Africa Asia (Ex. India) South America Australia Segment Breakup Bulk & Branded Domestic Exports 20% 18% 69% 70% 76% 75% 80% 82% 31% 30% 24% 25% 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 Generic Speciality Bulk Branded * Animal Nutrition Division (AND) and Environmental Health Division (EHD) 7 Consolidated Working Capital Movement Change Change Change Particulars (Rs. Crs) Dec-22* Sep-22* (Dec-22 to Mar-22* (Dec-22 to Dec-21* (Dec-22 to Sep-22) Mar-22) Dec-21) Inventory (A) 750.4 818.2 -67.8 937.8 -187.4 696.6 53.8 Inventory Days (Inventories/ COGS* No. of days in period) (i) 113 110 179 128 Trade Receivables (B) 1,035.7 1,185.3 -149.6 843.1 192.6 917.1 118.6 Trade Receivables Days (Trade Receivables / Revenue*No. of days in period) (ii) 100 101 100 105 Trade Payables (C) 473.9 549.5 -75.6 517.2 -43.3 509.1 -35.2 Trade Payables Days (Trade Payables/ COGS*No. of days in period) (iii) 71 74 99 94 Other Financial Liabilities (D) 436.4 512.4 -76.0 399.7 36.7 424.9 11.5 Other Financial Liabilities Days (Other Current Liabilities / Revenue*No. of days in period) (iv) 42 44 48 49 Net Working Capital (A+B-C-D) 875.8 941.6 -65.8 864.0 11.8 679.7 196.1 Net Working Capital Days (i+ ii –iii –iv) 99 94 133 91 Key Highlights ✓ Continue to maintain lower inventory as compared to previous quarters on back of smoothening of input supply chain channels and decrease in input cost ✓ Focused efforts towards improving collections -Collection during 9M FY23 of ~Rs. 2,989 crores as compared to Rs. 2,512 crores during 9M FY22, increased by 19% yoy ✓ Cash, Cash Equivalents and Liquid investments of ~Rs. 892 crores as on 31stDecember 2022 Given the seasonality in the business, it is best monitored on an annual basis 8 * No. of Days in period: Dec-22 –92 days, Sep-22 –92 days, Mar-22 –365 days, Dec-21 –92 days Sumitomo Chemical Company Limited, Japan - An Overview Overview of our Parent Company About Sumitomo ✓ SumitomostartedbusinessinJapaninearly16thCentury(400years+) ✓ CurrentlyseveralSumitomofoundedcompaniesoperateasindependentlistedcompanieswithwidespreadshareholdingandrunbyitsprofessionalboards ✓ Eventoday,allSumitomocompaniescontinuetofollowbasicbusinessphilosophyandethicalpracticesofSumitomo About Sumitomo Chemical Company Limited, Japan (SCC) ✓ SCCwasfoundedin1913andundertakesseveralchemicalrelatedbusinessesasanindependentlistedcompany ✓ SCCisaleadingJapaneseresearchdrivendiversifiedchemicalcompany listedontheTokyoStockExchangewithconsolidatedsalesrevenueofmorethanUS$22.5bn ✓ Offers diverse range of products globally in 5 business sectors: petrochemicals, energy and functional materials, IT-related chemicals and materials, pharmaceuticals and health and cropsciencessector; ✓ Followprinciplesof‘JIRI–RITA’whichmeansbalancebetweensocietybenefitsandcorporateprofits; SustainabilityisveryhighpriorityandSCCreceivedEcovadisGoldrating ✓ SCCholds12,600+Patentsofwhich~34%areinHealth&CropScience SCC’s Health and Crop Science Sector - Undivided Focus for Leadership in India ✓ Health&CropSciencesSector–RevenueofmorethanUS$3.8bn ✓ LeadingR&Dspendersgloballyamongagro-solutionplayers ✓ StrongpipelineofAgro-SolutionsandEnvironmentalHealthproductswithveryhighbusinesspotentialof~US$1.4-$1.8bn ✓ SCCrecentlyacquiredNufram’sdistributioninLatinAmericatherebygainingleadershippositioninLatinAmericaGenericsMarketSegment ✓ SCILisflagshipentityofSCCgroupfocusingonhighpotentialIndianmarket; onlyTGgrademanufacturingsiteoutsideJapanandpartofSCC’sgrowthstrategy ✓ SCCisproudofSCIL’sachievementsofarandconfidentofitsgrowthpotential ✓ SCCwillcontinuetosupportSCILtoachievemarketleadershippositioninIndianmarket 10 Sumitomo Chemical India Ltd. - Company Overview Journey to 13x Growth Formidable Player in the Indian SCIL - Vision & Mission in India Agrochemicals Space Diversified & De-risked Portfolio Strong Brand and Well- Strategically Located Across the Agro-Chem Value Entrenched Distribution Manufacturing Facilities Chain Network Strong Focus on R&D, Process Autonomous Board with Vast Innovation and Safety, Health Growth Strategies Industry Experience and Environment (SHE) SCIL - Vision & Mission Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distribution and Product • Endeavor to achieve success and sustainability Portfolio through innovation & excellence Manufacturing: • Supplying the most competitive products with safe and stable operation and meet demand Core Values: • Strengthen Procurement Power • Innovation • Expand Manufacturing Functions • Excellence Management & Support: • Integrity • Establishing the most efficient organization to support business growth and alignment with SCC • Respect & value all stakeholders • Develop administrative efficiency while ensuring • Customer focus internal controls • People focus • Full & Strict Compliances • Sustainability • Value Creation for all stakeholders 12 Journey to 13x Growth in India in last 12 years Exploration Phase: 2000 – 2010 Manufacturing JV with New Acquired product - 2000 2002 Started EHD (Public Health) 2005 2010 Chemi ‘Sulfosulfuron’ Leader business rights from Monsanto Started Animal Nutrition SCIL incorporated in India as 2001 Started ASD business 2003 Acquired EHD (HHI) 2006 Sales ~ INR 2 Bn EHD (HHI) distribution company unit from Bayer Vapi Aggressive Growth Phase : 2011 – 2021 Robust growth driven 1st full year SCIL 2.0 –Getting by Organic & In-organic of ready for next expansion operations growth phase Merger completion Acquisition of Excel Acquisition of New Chemiand Setting-up new organization, control system, PCO function integration with SCIL and innovative sales team Crop Care 30.6 26.4 11% 24.2 22.2# 19.4# 16.3 17.4 16.9 18.2 Rs. Bn 13.2 12.7 11.9 11.4 9.7 9.5 9.8 10.3 9.0 7.8 6.9 ECC 7.2 SCIL 4.5 4.9 6.5 7.1 7.9 8.5 9.0 10.0 2.3 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 # Inter-company transactions are eliminated. Other operating income is included 13 HHI –Household Insecticides Formidable Player in the Indian Agrochemicals Space 5 200+ 700+ Grown 13X+* over FY11-22 Manufacturing Brands SKUs Rs. Bn Facilities 13X 30.6 14 25+ / 200+ Technical Actives Patents / Registrations 16,000+ 1,750+ Direct Distributors Employees & 60+ Depots Product Name Product Category Indicative Use Glyphosate Herbicide Tea Gardens, non-cropped s Profenophos Insecticide Cotton, Soya bean t c u Dantotsu Insecticides Vegetables 2.3 d o Tebuconazole Fungicides Wheat, Soya bean, Chilli r P Progibb Plant Growth Regulator Citrus Fruits FY11 FY22 y e K Aluminum Phosphide Fumigant Warehousing of Food Grains Chlorpyriphos Insecticide Paddy, Beans, Gram *On an organic basis, grown 6X+ DL-Methionine Animal Nutrition Poultry 14 Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to over 60 countries Generics Speciality 7% 2% 2% Australia Insecticides 11% North America Domestic Herbicides 45% 30% 78% South America PGR 9% 43% Exports Europe Metal Phosphides FY22 FY22 22% 6% 10% Asia (Ex. India) Fungicides 9% 70% 18% AND & EHD Japan 17% Africa 21% ✓ Greaterfocusonhighgrowth,stableandhighprofitablesegmentssuchasHerbicides,PGR, ✓ Top10productscontributeslessthan45%ofTotalRevenue Bio-rationalproducts ✓ Noproduct/moleculecontributesmorethan16%ofTotalRevenue ✓ Increasing contribution from PGR segment and offerings for both Kharif and Rabi crops to reduceseasonalityinthebusiness ✓ Diversified across key crops - Concentrated efforts now on fruits & vegetables, paddy and other high ✓ Oneofthehighestproportionofenvironmentally-friendlyproductsintheIndustry growthsegments 15 Strong Brand and Well-Entrenched Distribution Network ✓ Strongbrandwith market leading position across various product categories ✓ Dual brand portfolio can offer products at all price points serving multiple 23 States 60+ Depots customer sub-segments ✓ In-depth knowledge of own research products, proven go-to-market 16,000+ ~40,000 strategyand deepfarmerconnectfacilitates launch of Speciality products Distributors Dealers ✓ On-field demonstration of products, training of farmers in using the products, building awareness among stakeholders in relation to the products 4.4 million+ ~600 Farmer Connect through Sales Team ✓ Pan-India distribution network ensures strong presence with both 1,500+ retailers and farmers and on-timefeedbackmechanism Field / Market Development Officers ✓ Scale and diversity of product offerings lead to superior bargaining power Domestic Bulk & Branded Contribution Exports with distributors and provides one-stopsolutionfor farmers (FY22) 76% 21% ✓ Expanded teams for strategic marketing, demand generation, product 79% 24% developmentandregulatoryaffairsto focus on future growth Bulk Branded 16 Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protectionsolutions ✓ Morethan1,500+Relationshipmanagersconnectingto4.4million+farmersthroughout cropcycle ✓ Over200brandscoveringmaximumofcropsandpestsegments ✓ 16,000+distributors,40,000+dealersand60Depotshelpinexpandingbrandvisibilityandconnect ✓ Morethan600+ QualifiedandskilledmanagersinSales,Marketingandcustomersupport ✓ Companywith20+megabrandswithhighbrandrecall ✓ HealthygeographicalBrandcoveragethroughoutIndiaincludingNorthEastandJ&K ✓ OptimumuseofadvertisingmediawithincreasedDigitalPlatformspresence 17 Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites,engagedwith 17.2 million consumers in2021-22. More than 31,000 subscribers http://www.danitolindia.com/ http://www.naturedeep.in/ Conducted 100s of YouTube, Facebook,Google,ZoomVideo Livesessionsin2021-22 http://danzapower.com/ http://www.vidyutindia.com/ ✓ Successful campaign to introduce the QR codes of http://www.sumitomoproducts.com/ to the retailersandfarmers. 15 Digital Launch programs of ✓ Morethan5,000downloads ✓ Video based campaigns to increase awareness among farmers and disseminate information on Taboli across India to introduce ✓ Rating–4.5 the product to distributors & necessaryprecautionstostopthespreadofCOVID19. retailers 18 Digital transformation & SAP Implementation Earlier SCIL was using different SAP platforms in different parts of business. From April 2021, SCIL has completed implementation ofanintegratedSAPSH4HANAsystemacross theentity includingseveraladditionalmodules Common SAP system across the entity and greater use of technology will enable greater integration, efficiencies &synergiesacrosstheorganizationandexpected toprovidelongtermbenefits SCIL plans to carry forward digital transformation journey across all areas with deployment of various value-added modules and systems including ‘SAP Integrated Business Planning’, ‘SAP Analytics Cloud’, ‘QR ‘Code Printing System’, ‘Adoption of Drone Technologies’ and various digital interfaces to reach out to distribution channel & farmers and providethemtimelyinformation 19 Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~58 and Formulations Chlorpyriphos, Profenophos, Glyphosate, Tebuconazole Production and manufacturing of Metal Tech, Quinalphos, Gajod ~120 Phosphides, Sulphur WDG and other WDG Imidacloprid, Thiacloprid, formulations Acetamiprid, Byspyribac Production and manufacturing of Active Tarapur ~5 Sodium, Fluroxypyr, Ingredients Aluminium Phosphide, Zinc Phosphide, Sulphur WDG, Vapi ~6 Formulation & Packaging Fenpropathrin Gujarat Formulations for above TG Formulation of Glyphosate and Other Silvassa ~3 products and several other Speciality Products speciality and generic Gajod Maharashtra products Silvassa • Overall Optimal capacity utilization generally Bhavnagar • Continues investments to enhance capacity as per the forecasted Vapi demand (similar to the trends followed in past) Tarapur • Recently acquired additional land at Dahej and Bhavnagar for future Mumbai –Head Office projects 5 Manufacturing Plants 4 Branches & 68 Depots Pan India Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 20 Capex Plans Additional Capex Research & Development Regular Capex Rs. 120 crore Rs. 70-75 crore p.a. Indian R&D team is working on over 2 years for 5 products manufacturing several off-patent productsforDomesticaswell asExports To manufacture additional proprietary technical to global affiliates including high growth Maintenance capex grade active ingredients products for our parent regions such as Latin America, Africa company SCC Japan and our global affiliates and Asia Pacific which will entail additionalcapexandisunderevaluation Capacity enhancements for existing products 5 products have been approved in-principle for in line with projected demand supply to SCC and several others are in pipeline Future Expansion Plans Projects are being set-up at our existing sites. Infrastructure enhancements for supporting Target commercialization over next 1 year future growth Signed and registered agreements to buy 2 additional land parcels and transfer process is expectedtobecompletedsoon Efficiency improvement projects and safety Revenue potential of these 5 products on the enhancement above capex is Rs. 200 crore to Rs. 250 crore p.a. • ~20 acre privately owned land parcel adjoining our existingBhavnagarsite Sustainability initiatives, full compliance with Estimated margins are in line with current • ~50 acre privately owned land parcel at a prime locationatDahejwithinPCPIRZone environmental norms & renewable energy projects margins earned by SCIL for similar projects One project for a very important global proprietary product These products have growing global demand. began commercial production recently and the second Trials and registrations for future pipeline Potential to add further capacities and project involving multiple products is expected to begin products additional products in medium to long term commercial production in Q1 FY23-24 21 Strong Focus on R&D and Process Innovation End-to-End Product Development Capabilities ✓ 3fullyequipped,DSIRapprovedR&Dlabslocatedat Mumbai,Bhavnagarand Gajodcapableofsynthesis,technicalproductandformulationdevelopment ✓ R&D Team comprises of 75+ qualified and dedicated engineers & scientists ofwhich10+arePhDswithmorethan15yearsofExperience ✓ 25+patentsgrantedacrossvariousgeographies;9applicationsfiled ✓ ProductPipeline DF EO ▪ Multipleproductscomingfrominitiatives VR EM L OU ▪ GlobalSpecialityProprietaryproductstobelaunchedinIndia PL MA T ▪ New combination products / pre-mixtures currently under N E O I developmentfordomesticandexports TN ▪ Off-patentproductsunderdevelopmentfordomesticandexports ▪ Technicalproductsapprovedformanufacturingandexports ✓ R&D facilities to gain capability for creating new processes and new combinations using SCC Japan’s chemistries which would help improve productionprocessesandefficiency 22 Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy Abiding by SCC Japan’s EHS Policies working environment at manufacturing sites ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sitesatBhavnagar,Gajod,TarapurandSilvassa;ISO:9001:2015atVapi A8000CertificationforSocialAccountabilityinBhavnagarandGajod Dr. Vikram Sarabhai award for developing green technology from departmentofScienceandTechnology,GovernmentofGujarat Efforts focused on reducing effluent load and effluent treatment cost, for staying innovativeandcompetitiveinthemarket Certificates of appreciation received ten times from jointly by Gujarat Safety The quality of the products is maintained and upgraded to the applicable national CouncilandDish andinternationalstandardsthroughrigorouspursuitofSixSigmainitiative Focused on energy conservation and energy cost reduction: 50% of total power requirementthroughwindandsolarpowergenerationplants GovernmentofGujaratforachieving10lakhaccidentfreeman-hours Expandingsolarpowerplantcapacityinlinewithtowardsgreenenergywouldalso help in reducing dependence on outsourced power as well as in energy cost Certificates of merits received from jointly by Gujarat Safety Council and reduction DishGovernmentofGujaratforachieving20lakhaccidentfreeman-hours 3RPrinciple:Recovery–Recycle–Reuse Safety audit, training programmes and other safety management processes and Certificates of honour received two times jointly by Gujarat Safety Council programmesarecarriedout/conductedatregularintervals and Dish Government of Gujarat for achieving 30 lakh accident free man- All the manufacturing and warehousing sites of the Company are covered by hours safetyaudit Focus on purity, quality and timely delivery of products to the customer 23 Awards & Accolades Shramveer award for improvement of product efficiency Jamnalal Bajaj Award for “Fair Business and Practices” received from national level Delhi Vishwakarma Rashtriya Puraskar received for process First ever president’s gold shield for import substitution development First award for export of organic and inorganic chemicals National Safety Award by Labour Ministry, Government of India for safety performance ICMA award for innovation and purposeful programs for social Shramveer Award to employees from Labour Ministry, state progress level received six times First Sir P.C. Ray award for development of products and process with indigenous technology Shram Bhushan Award to employees received five times Punjab Haryana Delhi Chamber of Commerce and Industries Shram Ratna to employees, received seven times award for ethical business Winner active ingredient trophy and certificate from M/s. Shram Shri award to employees received three times Bayer Trishul award for the excellent performance for exports in Gujarat State Safety Certificate for safety commitment international markets Global CSR award from SCC for one of our Integrated Village CSR Award from Federation of Gujarat Industries Development Programme 24 Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 30yearsofexperienceincorporatelaws,foreigninvestment theNationalUniversityofSingapore and collaborations, mergers and acquisitions and private ▪ AdvisortoGovtsinAsiaontaxpolicy&pensionreforms;andto equityinvestments,banking,franchisingandhospitality multi-lateral institutions including IMF, Asian Development Bank,PFRDAofIndia,GovtofGujarat,&WorldBank ▪ MemberofthepaneltoreviewCrawfordSchoolofPublicPolicy atAustralianNationalUniversity Bhupendranath Bhargava Ninad Dwarkanath Gupte Independent Non-executive Director Non-executive Director ▪ Experience of over 50 years in areas including banking, ▪ Experienceof43yearsinmanagementofcompaniesoperatingin projectfinancingandcreditrating fine chemicals, performance chemicals, industrial chemicals & agrochemicals ▪ Held directorship in several leading corporates and was on theadvisoryboardofanindependentregulatorybodysetup ▪ Held senior positions at Excel Industries, BASF India, Herdillia by the Government of India to work on reforms in Chemicals and worked as MD of Cheminova India and Agrocel telecommunicationssector IndustriesandasJointMDofExcelCropCare 25 Autonomous Board with Vast Industry Experience Tadashi Katayama Masanori Uzawa HiroyoshiMukai Non-executive Director Non-executive Director Non-executive Director ▪ MBAfrom UniversityofVirginia,USAand ▪ MBA from Vanderbilt University, U.S.A. a Bachelor’s degree from the University ▪ Associated with Sumitomo Chemical and a Master’s degree from Kyoto ofTokyoinJapan Groupforover30years UniversityinJapan ▪ Associated with Sumitomo Chemical, ▪ Holds a bachelor’s degree from the ▪ Associated with Sumitomo Chemical, Japan and has experience of over 19 UniversityofOsaka,Japan Japan since 1992 in the Health and Crop years in the areas of strategy, planning Sciencebusinessunitinvariouspositions and business development for crop protection&otherchemicalbusinesses. Chetan Shantilal Shah Sushil ChampaklalMarfatia Managing Director Executive Director ▪ Commerce graduate from the University of Mumbai and ▪ Chartered Accountant with over 42 years of industry holds a master’s degree in Business Administration from experience NorthRopeUniversityintheUSA ▪ Worked with New Chemi Industries Limited for 33 years ▪ Over 43 years of industry experience in various leadership whichwaslatermergedwiththeCompany andseniormanagementroles Board is supported by a strong and experienced management team associated with Company since long 26 Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • AimtoinvestinseamlessintegrationofR&DbetweenSCIL andSCC • Driving operational efficiencies maintaining highest safety India units which would help improve our production processes, standardsandResponsibleCarecompliances enhancingyieldsandefficiency • Invest~15%ofconsolidatedEBITDAeveryyearforupgradationof • Introducenewproductsaspermarketdemand manufacturingfacilitiesandcapacityexpansiontocatertostrong domestic/globaldemand ▪ Balanced portfolio of generic and speciality products ▪ Consolidate position as best agro-chemical marketerinIndia Further Brand Development Product Pipeline Expand Export Business • Investments for marketing of new and • Multipleproductscomingfrominitiatives existingproductsandbrands • Enhance exports in regions like Africa ▪ Striveformanufacturingexcellence • GlobalSpecialityProprietaryproductstobe • On-field demonstrations, training of Leverage SCC’s Global supply chain and launchedinIndia farmersfor buildingground-leveldemand marketing network to drive exports in • New combination products / pre-mixtures generationsupportedbydigitalmarketing LatinAmerica,AsiaandEurope ▪ Set-upastrongmanagement&team currently under development for domestic • Extraordinary preparations for new andexports productlaunchesunderway • Off-patent products under development fordomesticandexports ▪ Lay the foundation for next generation • Technical products for manufacturing and leadership exports Leverage expertise in successful product launches and capacity expansions to fuel future growth 27 Historical Performance Highlights Financial Performance & Key Takeaways Key Takeaways Consolidated Balance Sheet Assets (Rs. Crs) Sep-22 Mar-22 Equity & Liabilities (Rs. Crs) Sep-22 Mar-22 Non-Current Assets (A) 590.2 487.6 EQUITY (A) 2,219.7 1,927.2 Property, Plant and Equipment 379.3 349.6 Equity Share Capital 499.1 499.1 Capital work-in-progress 22.5 21.1 Other Equity 1,720.6 1428.1 Right to use an Asset 30.7 36.4 Other Intangible Assets 4.6 4.3 Non-current liabilities (B) 41.6 61.0 Intangible Assets under Development 16.6 14.1 Non-Current Financial liabilities Non-Current Financial Assets Lease Liabilities 17.2 24.7 (i) Investments 0.1 0.1 Provisions 7.3 22.3 (ii) Loans & other financial assets 104.2 30.8 Deferred tax liabilities (net) 17.1 13.9 Deferred tax Asset (net) - - Non-Current tax Assets (net) 23.7 21.6 Non-current Tax Liabilities - - Other non-current Assets 8.4 9.5 Current liabilities (C) 1,193.6 1,021.4 Current Assets (B) 2,864.8 2,522.0 Current Financial liabilities Inventories 818.2 937.8 (i) Borrowings - - Current Financial Assets (ii) Trade Payables 549.5 517.2 (i) Investments 311.2 356.0 (ii) Trade receivables 1,185.3 843.1 (iii) Lease Liabilities 14.5 12.9 (iii) Cash and cash equivalents 80.8 57.2 (iii) Other financial liabilities 512.4 399.7 (iv) Bank balances other than (iii) above 218.0 21.9 Other current liabilities 54.6 79.8 (v) Loans 0.4 0.5 Provisions 18.8 7.2 (vi) Other financial assets 114.8 174.5 Other Current Assets 136.1 131.0 Current tax liabilities 43.8 4.7 Total Assets (A+B) 3,454.9 3,009.6 Total Equity & Liabilities (A+B+C) 3,454.9 3,009.6 NIL borrowings Cash, Cash Equivalents & Liquid Investments of ~Rs. 800 Crsas on 30thSeptember 2022 1. Given the seasonality in the business, it is best monitored on an annual basis 29 2. Appointed date for merger of ECC and SCIL is 1stApr’18 Consolidated Cash Flow Statement Cash Flow Statement (Rs. Crs) Year ended 30-Sep-22 Year ended 30-Sep-21 Net Profit Before Tax 451.6 351.9 Adjustments for: Non-Cash Items / Other Investment or Financial Items 34.5 23.0 Operating profit before working capital changes 486.1 375.0 Changes in working capital -105.6 41.5 Cash generated from Operations 380.5 416.4 Direct taxes paid (net of refund) 72.7 56.1 Net Cash from Operating Activities 307.8 360.3 Net Cash from Investing Activities -223.2 -417.8 Net Cash from Financing Activities -61.0 -51.9 Net Increase /(Decrease) in Cash and Cash equivalents 23.5 -109.4 Add: Cash & Cash equivalents at the beginning of the period 57.2 213.3 Cash & Cash equivalents at the end of the period 80.8 103.9 1. Given the seasonality in the business, it is best monitored on an annual basis since a significant portion of revenue & PAT is recorded in the first half of the year 30 Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) +13% 3,065 600 424 2,645 +29% +31% 2,425 487 345 2,228 1,913 333 291 205 166 217 145 19.6% 18.4% 11.3% 13.0% 13.7% FY18* FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Networth (Rs Crs) RoCE(%)^ Net Working Capital Days 1,927 29.8% 30.2% 131 133 +19% 119 1,541 23.2% 25.3% 24.8% 115 104 1,222 1,048 954 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 1. Given the seasonality in the business, it is best monitored on an annual basis since a significate portion of revenue & PAT is recorded in the first half of the year 31 2. Appointed date for merger of ECC and SCIL is 1stApr’18 *Revenue is Net of Excise Duty. ^ ROCE –{EBIT/ (Net Worth + Borrowings)} Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY22 FY21 FY20 FY19 FY18 Net Revenue from Operations 3,064.6 2,644.9 2,424.8 2,228.4 1,912.9* COGS 1,908.0 1,655.4 1,607.6 1,458.9 1,238.7 Gross Profit 1,156.6 989.5 817.2 769.6 674.2 Gross Profit % 37.7% 37.4% 33.7% 34.5% 35.2% Employee Expenses 202.0 194.3 179.3 158.4 147.5 Other Operating Expenses 354.7 308.4 304.7 320.5 309.6 Operating EBITDA 599.9 486.9 333.2 290.7 217.1 EBITDA Margin 19.6% 18.4% 13.7% 13.0% 11.3% Other Income 26.8 18.6 10.7 7.6 30.5 Depreciation 44.8 46.6 41.0 27.8 23.7 EBIT 581.9 458.9 302.9 270.5 223.8 EBIT Margin 19.0% 17.3% 12.5% 12.1% 11.7% Interest 6.2 5.6 5.5 3.7 2.8 Profit Before Tax & Exceptional 575.7 453.3 297.4 266.8 221.0 Exceptional Item Gain / (Loss)** 0.0 - -30.9 -7.0 - Profit Before Tax 575.7 453.3 266.5 259.8 221.0 PBT Margin 18.8% 17.1% 11.0% 11.7% 11.6% Tax 152.2 107.9 61.8 94.0 75.8 Net Profit 423.5 345.4 204.7 165.8 145.1 Net Profit Margin 13.8% 13.1% 8.4% 7.4% 7.6% Other Comprehensive Income 2.4 1.6 -5.1 0.1 5.1 Total Comprehensive income for the period 425.9 347.0 199.6 165.9 150.2 EPS 8.5 6.9 4.1 3.3 2.9 1. Given the seasonality in the business, it is best monitored on an annual basis 2. Appointed date for merger of ECC and SCIL is 1st Apr’18 32 * Revenue net of Excise Duty; ** Merger expenses Consolidated Balance Sheet Assets (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non-Current Assets (A) 487.6 365.7 360.6 318.3 312.7 EQUITY (A) 1,927.2 1,541.3 1,221.8 1,048.4 954.0 Property, Plant and Equipment 349.6 277.6 282.9 277.2 264.8 Equity Share Capital 499.1 499.1 499.1 274.6 274.6 Capital work-in-progress 21.1 4.3 6.5 3.2 4.5 Other Equity 1428.1 1,042.2 722.6 773.8 679.4 Right to use an Asset 36.4 31.1 34.9 - - Other Intangible Assets 4.3 0.6 1.7 2.1 1.9 Non-Current liabilities (B) 61.0 49.6 44.5 30.2 32.5 Intangible Assets under Development 14.1 10.0 3.8 4.9 4.3 Non-current Financial liabilities Non-Current Financial Assets Lease Liabilities 24.7 15.3 19.4 - - (i) Investments 0.1 0.1 0.1 0.1 0.1 Provisions 22.3 29.2 25.1 15.6 12.7 (ii) Loans & other financial assets 30.8 6.0 5.3 7.6 7.3 Deferred tax liabilities (net) 13.9 5.0 - 14.6 18.1 Deferred tax Asset (net) - - 1.1 - - Non-Current tax Assets (net) 21.6 18.5 20.2 18.8 24.8 Non-current Tax Liabilities - - - - 1.7 Other non-current Assets 9.5 17.6 4.2 4.4 5.1 Current liabilities (C) 1,021.4 1,079.2 839.9 781.3 671.9 Current Assets (B) 2,522.0 2,304.3 1,745.6 1,541.7 1,345.7 Current Financial liabilities Inventories 937.8 754.4 588.0 680.6 609.3 (i) Borrowings - - - 19.7 10.1 Current Financial Assets (ii) Trade Payables 517.2 598.3 490.9 480.8 527.3 (i) Investments 356.02 290.2 86.0 - - (ii) Trade receivables 843.13 848.2 849.8 671.0 551.8 (iii) Lease Liabilities 12.9 17.3 16.2 - - (iii) Cash and cash equivalents 57.25 213.3 92.6 50.5 73.5 (iii) Other financial liabilities 399.7 349.8 235.4 179.2 55.6 (iv) Bank balances other than (iii) above 21.88 28.8 0.9 0.9 0.8 Other current liabilities 79.8 108.2 80.2 87.2 70.1 (v) Loans 0.47 7.7 7.9 5.1 3.7 Provisions 7.2 5.6 9.7 2.5 2.3 (vi) Other financial assets 174.50 11.4 21.8 15.8 10.4 Other Current Assets 131.03 150.3 98.6 117.8 96.3 Current tax liabilities 4.7 0.0 7.4 12.0 6.6 Total Assets (A+B) 3,009.6 2,670.1 2,106.2 1,860.0 1,658.4 Total Equity & Liabilities (A+B+C) 3,009.6 2,670.1 2,106.2 1,860.0 1,658.4 NIL borrowings Cash, Cash Equivalents & Liquid Investments of ~Rs. 599 Crsas on 31stMarch 2022 1. Given the seasonality in the business, it is best monitored on an annual basis 33 2. Appointed date for merger of ECC and SCIL is 1stApr’18 Consolidated Working Capital Movement Particulars (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Inventory (A) 937.8 754.4 588.0 680.6 Inventory Days (Inventories/ COGS*365) (i) 179 166 134 170 Trade Receivables (B) 843.1 848.2 849.8 671.0 Trade Receivables Days (Trade Receivables / Revenue*365) (ii) 100 117 128 110 Trade Payables (C) 517.2 598.3 490.9 480.8 Trade Payables Days (Trade Payables/ COGS*365) (iii) 99 132 111 120 Other Financial Liabilities (D) 399.7 349.8 235.4 179.2 Other Financial Liabilities Days (Other Current Liabilities / Revenue*365) (iv) 48 48 35 29 Net Working Capital (A+B-C-D) 864.0 654.5 711.4 691.6 Net Working Capital Days (i+ ii –iii –iv) 133 103 115 131 1. Given the seasonality in the business, it is best monitored on an annual basis 34 2. Appointed date for merger of ECC and SCIL is 1stApr’18 Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 31-Mar-18 Net Profit Before Tax 575.7 453.3 266.5 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 46.3 54.5 45.7 18.6 9.6 Operating profit before working capital changes 622.0 507.8 312.2 278.5 230.6 Changes in working capital -257.6 25.6 -9.4 -112.7 -100.0 Cash generated from Operations 364.4 533.4 302.8 165.8 130.6 Direct taxes paid (net of refund) 142.6 107.9 81.4 88.1 83.1 Net Cash from Operating Activities 221.8 425.4 221.4 77.7 47.4 Net Cash from Investing Activities -290.2 -282.7 -117.9 -35.3 -39.6 Net Cash from Financing Activities -62.6 -47.1 -61.4 -65.4 7.2 Net Increase /(Decrease) in Cash and Cash equivalents -131.1 95.7 42.2 -23.1 15.0 Add: Cash & Cash equivalents at the beginning of the period 188.3 92.6 50.5 73.5 58.6 Cash & Cash equivalents at the end of the period 57.2 188.3 92.6 50.5 73.6 1. Given the seasonality in the business, it is best monitored on an annual basis since a significant portion of revenue & PAT is recorded in the first half of the year 35 2. Appointed date for merger of ECC and SCIL is 1stApr’18 Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi-product, multi-geography, ▪ 23 states, 60+ depots, 16,000+ productsandprocesses autonomous Board with vast multi-customerde-risking distributors,40,000+dealernetwork experienceanddomainexpertise ▪ Ability to develop new combination ▪ Access to an impressive range of ▪ High credibility and brand recall products (9 under registrations and ▪ Localized experience enables better own actives along with significant amongst famers and the trade on additionalunderdevelopment) understanding of market needs to exposure towards speciality account of transparent and ethical drivegrowth products resulting in product businessdealings offerings at all price points serving multiplecustomerssub-segment To Benefit from Strong Parentage State-of-the-art Manufacturing Strong Track Record of Driving of SCC Japan and R&D Facilities Growth ▪ Benefits from international standing ▪ Operates five manufacturing ▪ Grown 13X over FY11-22 driven by of SCC Japan; most well revered facilities with state-of-the-art plants organic and inorganic expansion; brandrenownedforitsquality at strategic location which helps 11% CAGR for merged entity reducelogistictimeandcosts (including Excel Crop Care) over the ▪ Access to SCC’s global supply chain sameperiod and global R&D activities (one of the ▪ Capacity not a constraint allowing largest spenders) resulting in for significant growth on existing ▪ Debt free balance sheet with strong development of actives and broad investments returnratios rangeofformulationresearch ▪ Holds 27 patents and further 9 applicationsfiled 36 Annexures Glance of various events to bring people together Glance of various events to bring people together 38 For further information, please contact: Company : Investor Relations Advisors: Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110MH2000PLC124224 CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Mr. Parin Narichania +91 99206 02034 / +91 99300 25733 investor.relations@sumichem.co.in jigar.kavaiya@sgapl.net/ parin.n@sgapl.net www.sgapl.net For further information, kindly visit our new website www.sumichem.co.in 45