#1INVESTOR PRESENTATION Jan 2024 GRAVITA We Recycle to Save Environment Towards Clean, Green & Sustainable Future#231 YEARS GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR www. GRAVITA We Recycle to Save Environment 2#3Lead recycling plant in Jaipur 1994 We are on an AMAZING JOURNEY 2001 2019 New recycling facility at Mundra port Started Aluminium & Plastic recycling in Africa 2016 Added Aluminium Recycling _ 1st recycling unit in Ghana 1st Overseas recycling unit at Sri-Lanka Diversified in Plastic recycling 2007 2010 2015 Listed on NSE & BSE 2013 2021 2022 GRAVITA We recycle to save environment Added Rubber Recycling, Became MCX empaneled brand Value added products in Jaipur 3#4Building a Green World through Recycling Unwavering commitment to sustainability-driven values continues to light the growth path. Vision To be the most valuable company in the recycling space globally. Mission Rank among the top five global recycling companies by 2026, driven by ✰ Diversification ✰ Sustainable growth ✰ Eco-friendly innovation Core Values Fairness ܀ Trust ܀ Respect ܀ ✰ Passion ✰ Nurturing Relationship Social Responsibility ✰ Community development ✰ Advance education Combat hunger ܀ Safeguard the environment GRAVITA We Recycle to Save Environment Business Verticals Existing: ✰ Lead Aluminium Plastic ܀ Rubber ܀ ❖Turnkey Solutions Upcoming Diversifications: Lithium-ion ✰ Steel Paper ܀ ✰ Stakeholder value creation 4#5Management Commentary & Business Outlook GRAVITA We recycle to save environment "Gravita is strongly progressing towards achieving its ambitious Clear Vision 2027 focusing on diversifying into new business verticals, attaining a revenue cagr and profitability growth of 25%+ and 35%+. Our strategies of expanding the capacities, increasing the proportion of value-added products and back to back hedging for risk mitigation has shown results in the form of strong and sustainable margins. We are confident that, with the same level of commitment and teamwork, we will achieve our mission to Rank among the top five global recycling companies by 2026. Coming to Q3 & 9MFY24 performance, I am pleased to report that our company has delivered a strong financial & operational performance. Volumes, Revenue, EBITDA and PAT for nine months have increased by 5%, 12%, 19% and 24% resp. ROCE and proportion of Value-added products for 9MFY24 stood strong at 26% and 47% respectively. With the support of all the stakeholders, we are confident that we will be able to achieve our Vision 2027" Yogesh Malhotra Whole Time Director & CEO 5#6FINANCIAL Highlights 22% Revenue CAGR -5 Yrs 35% PAT CAGR - 5 Yrs 40 Cr+ Reduction in Debt in FY 2023 Revenue 2801 9-10% Consistent EBITDA margins Locking the margins Back-to-back hedging mechanism in place PAT (Cr) and PAT Margin (%) A+ GRAVITA We recycle to save environment External credit rating from ICRA 12 Years History of sustainable dividend payouts Capital Employed (Cr) 7.18% 201 969 2216 37% 6.32% 807 36% 139 51% 39% 1410 31% 1348 1242 514 544 3.20% 75% 460 33% 25% 29% 2.46% 23% 29% 21% 63% 64% 52 69% 61% 71% 1.25% 75% 77% 71% 67% 33 79% 61% 49% 15 48% 25% 47% 52% 39% 53% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 India Overseas India Overseas India Overseas PAT Margin 6#7QUARTERLY HIGHLIGHTS - Q3 FY24 Riding Higher - VISION 2027 REVENUE (Cr) 836 GRAVITA We recycle to save environment 789 758 -7% -4% 26%+ 20%+ Volume Y-o-Y Revenue Y-o-Y EBITDA Y-o-Y PAT Q3FY23 Q2FY24 Q3FY24 Y-o-Y 89.68 EBITDA* (Cr) 11.82% 79.84 70.91 42% Revenue from Value added products EBITDA per MT 23,377 36% 17,673 17,010 17,033 17% Revenue from Overseas Business Y-o-Y Increase in Production 8.98% Q3FY23 VOLUME (MT) EBITDA 9.56% H Q2FY24 Q3FY24 -EBITDA % - 38,769 34,488 33,868 PAT (Cr) 60.27 50.20 6.36% 6.92% 57.86 - 7.95% 11,679 11,080 9,339 11,073 9,110, Q3FY23 Q2FY24 Lead ■ Aluminium Q3FY24 Plastic 5,840 3,398 3,404 3,018 3,264 2,458 Q3FY23 Lead Q2FY24 ■ Aluminium Q3FY24 ■ Plastic *Revenue / EBITDA after adjustment of income/loss from Currency & Metal hedging Q3FY23 Q2FY24 Q3FY24 PAT - -PAT% 7#8Project Updates Tanzania Togo Started commercial production of plastic at its existing recycling plant Capacity 1,800 MTPA Capex - Rs. 2.25 Cr. From internal accruals GRAVITA We recycle to save environment Started commercial production of lead from its existing recycling plant Capacity 6000 MTPA Capex Rs. 3.61 Cr. From internal accruals Increased capacity of Lead recycling to 64,640 MTPA Capex Rs.21 Cr. from internal accruals Started Rubber Recycling Capacity of 3,000 MTPA Capex Rs.3.86 Cr. from internal accruals - Chittoor Tanzania Mundra Started Value Added Production of Red Lead with a Capacity of 4,800 MTPA Started Plastic Recycling with a Capacity of 7,500 MTPA Oman Gravita signed MOU to establish Battery Recycling Plant through JV Capacity of 6,000 MTPA in Phase 1 Increased capacity of Lead recycling to 60,000 MTPA Gravita's first recycling facility in Middle East 8#9New recycling Verticals Lithium, Steel & Paper VISION 2027 GRAVITA We recycle to save environment 25%+ ROCE 25% + Revenue CAGR 35% + Profitability Growth 50%+ Value added products 25%+ Non-Lead business Our Priorities Shareholder value creation Return accretive growth Judicious use of capital 6#10Capacity Expansion & CAPEX over the Years Capacity (MT) 4,34,319 3,95,319 CAPEX (Rs Cr.) 159 148 GRAVITA We recycle to save environment 2,04,919 2,33,919 3,24,319 FY22 FY23 FY24E FY25E FY26E Lead Aluminium Plastic Rubber -Total 73 110 110 105 100 45 FY22 FY23 FY24E ■Existing Verticals FY25E New Verticals FY26E 4,25,000 MTPA Capacity planned by FY 2026 Rs. 600+ Cr Capex planned by FY 2026 10#11RETURN ON CAPITAL EMPLOYED 18% 16% FY20 *on Average Capital Employed 29% 29% 26% FY21 FY22 FY23 H1 FY24 3 Years Capital Allocation policy for new projects Maximum Payback period GRAVITA We recycle to save environment Target ROCE 25% + Consolidated Drivers of ROCE Improving industry dynamics Resultant reduction in working capital Improving demand- supply Value added products 25% + ROCE 8+ 11 Asset turns#12Reducing NET WORKING CAPITAL CYCLE • • Processing of Scrap near to the source - Avoid Transits Retail scrap collection through OEM's - Zero working capital 95 Days March'22 86 Days Sep'23 * GRAVITA We recycle to save environment 65 Days March'26 34 15 ■ Receivables ■ Paid Plant Inventory * ■Transit Inventory 46 17 21 15 15 48 ■ Receivables ■ Paid Plant Inventory * ■Transit Inventory 35 ■ Receivables ■ Paid Plant Inventory * ■Transit Inventory Paid Inventory includes advance to vendors and net off Trade payables Based on Avg Core working capital 12#13Leveraging existing GRAVITA'S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita's Strengths. Barriers to Entry Global Operations & Integrated Supply Chain Deep Routed Diversified procurement Customer network Q GRAVITA We recycle to save environment Turnkey Recycling Technology Solutions Robust Management network Customised & Value Added Products Operation Excellence Strong Partnering Capability Risk Mitigation-Back to Back Hedging Mechanism 【13#14Barriers to Entry Import License in India Based on past years performance OEM Approvals Takes time to get products approved from OEM's GRAVITA We recycle to save environment Specialist Knowledge Experience & Technical Know-how Multinational Procurement Network Global Presence Time & Cost of Entry Customer Base, Capacity procurement networks Industry Specific ENTRY BARRIER Capability to Develop Customized Products More Value-added products for better margins 14#15GLOBAL & PAN INDIA Operations Global spread helps reduce logistics costs and procure material cheaper. Start small > grow volumes > establish new plants close to procurement sources. Increased flexibility in recycling closest to raw material access and consuming markets. America Dominican Republic Africa Ghana (Accra) Senegal (Dakar) Mozambique (Maputo) Tanzania (Dar-es-Salam) Togo (Lome) Existing Facilities GRAVITA We recycle to save environment Head Quarters India (Jaipur, RJ) Upcoming Facilities Asia India - Kathua (J&K) - Jaipur (Rajasthan) - Jaipur SEZ (Rajasthan) - Chittoor (Andhra Pradesh) - Mundra (Gujarat) - Sri Lanka (Mirigama) - Oman (Muscat) 15#16Deep Routed PROCUREMENT NETWORK 31 2,05,000 MT+ Own yards 1500+ Touch points Scrap collection GRAVITA We recycle to save environment Europe Touch Points Scrap collection MT) - 5,500+ Americas Touch Points- 75+ Scrap collection (MT) -19,000+ Africa Own Yards 26 Touch Points- 450+ Scrap collection (MT) -6,000+ Asia Own Yards-5 Touch Points- 1000+ Scrap collection(MT 13,500+ Deep presence in Asia, Africa, Middle East, Europe & America ensures raw material at competitive prices 16#17Diversified CUSTOMER NETWORK - GLOBAL 38+ Countries 375 + Customers 1,55,000 MT + Recycled products delivered GRAVITA We recycle to save environment Americas Countries - 9 Customers -27 Delivered-6,000 MT+ Europe Countries - 10 Customers -18 Delivered-17 500 MT+ Middle East Countries 5 Customers 26 Delivered-24,000 MT+ Asia Countries - 14 Customers, 201 Delivered 7,500 MT+ 17#18Diversified CUSTOMER NETWORK-INDIA Srinagar Kathua JAMMAND KASHMIR HIMACHAL PRADES GRAVITA We recycle to save environment Gravita with pan India presence enjoys the logistic benefits by serving: • 230+ domestic customers in 22 states in India • 90+ overseas customers in 36 countries. RAJASTHAN Mundra Gandhinagar Gandhidham GUJARAT Daman DAMAN AND DIU DADRA AND NAGAR HAVELI Mumbai (Bombay) Phagi Chandigath PUNAB HARYAN Del New Del Simla Dehra dun Uttarakhand UTTAH PRADESH UNACHAL FRAUES SIKKIM tanagar Gangtok ASSAM LAND Lucknow Patna BIHAR Dispur Shillongo MEGHALAYA Kotima Imphal MANPUR Agartala Bhopal JHARKHAND Ranchi The Aizawl BENGAL RAM MADHYA PRADESH CHHATTISGARH Raipur Sassa MAHARASHTRA Telangana Hyderabad Panaji GOA ANDHRA PRADESH KARNATAKA Chitoo Chennai (Madras) Bangalore PONDICHERRY- Pondicherry PONDICHERRY TAMIL NADU Kavaratti PONDICHERRY LAKSHADWEEP Odisha Bhubaneswar PONDICHERRY Chittoor Gandhidham Kathua Phagi Trivandrum Mundra 18#19OPERATIONAL EXCELLENCE * As on 23rd Jan 2024 47% Customized & Value added products GRAVITA We recycle to save environment 4 Recycling Verticals 11 Recycling Plants 1500+ Touch Points Globally 2.86Lac+ 57% 29% MT Production Capacity* Capacity Utilization Overseas Capacity* 2.05 Lac+ MT Scrap Collection ILA India's only Accredited Plants 60000 MT+ Healthy Orderbook 19#20OUR PARTNERS (Strong Partnering Capability) GRAVITA We recycle to save environment AMARA RAJA Gotta be a better way OCTAL INDORAMA TATA Area ваттегіes (GS YUASA A samvardhana motherson Korea Zinc.Co., Ltd. HITACHI thyssenkrupp TATA KEC KEC INTERNATIONAL LIMITED LUMINOUS DOHA CABLES دوكاب Ducab GLENCORE KEI Wires and Cables The power behind the power™ CLARIOS EXIDE Panasonic SANDHAR Growth. Motivation. Better Life TVSX AL DOBOWI Nilkamal TRAFİGURA op POLYCAO asianpaints zi TOYOTA TSUSHO HT Honda Trading PHILIPS Lighting 20#21TURNKEY SOLUTIONS for Recycling In house Recycling Technology Technical Consultancy & Services for Recycling PLC based Control & Monitor System for advanced set-ups Planning and Specification Design 8 ko A. GRAVITA We recycle to save environment Executed more than 50 turnkey projects globally including Qatar, UAE, Saudi Arabia, Poland, Chile Annual Maintenance Contracts Regular R&D for cost effective & environment friendly processing. Fabrication Testing Installation Operation Handover (21)#22ROBUST MANAGEMENT & focus on Human Capital GRAVITA We recycle to save environment Rajat Agrawal Managing Director Yogesh Malhotra Whole Time Director & CEO 27 Yrs + Avg Management Experience in diversified Industries 175+ Professionals (CA's, MBA's, Engineers) 100% Employees covered under incentive schemes 5 Yrs Average Employee Association Average Employee Age 15 Yrs Average Management Association 35 Yrs Vijay Pareek Naveen Sharma Rajeev Surana Executive Director* Executive Director* Executive Director* 625+ Employees Sunil Kansal Chief Financial Officer Ajay Thapliyal Vice President 4 rounds ESOP's * Non-Board Member 22#23CUSTOMIZED AND VALUE ADDED PRODUCTS Customized Lead Alloys Lead Sheets Lead Bricks GRAVITA We recycle to save environment Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of customer's product mix. Value Added Products % in revenue 50% 47% 44% 43% 42% 42% Red Lead Lead Oxide Customized Aluminium Alloys Plastic Granules ① FY20 FY21 FY22 FY23 9M FY24 FY27E 23 Pet Flakes - Food grade#24Risk Mitigation by BACK TO BACK HEDGING mechanism Back-to-Back Hedging GRAVITA We recycle to save environment Core Inventory +Back-to-Back Hedging . To mitigate the risk of commodity prices fluctuation from June. 2016 • Metal equivalent of the scrap bought, is sold on the same day · Pricing against Customer contracts - Natural Hedging • Forward Contracts on LME Exchange for balance quantity - till final sale to customer $ 2379 • Core inventory was not part of back to back hedging 2.50% . • Gravita started hedging of core inventory also in June, 2019 by taking a forward contact on LME Exchange. June, 2019 onwards Gravita is enjoys stable margins and is not affected by the commodity price fluctuations $2283 $ 2105 $1867 10.21% $ 2122 $1947 9.70% 10.21% 8.32% 8.61% 9.70% 7.23% 6.50% 6.11% 5.00% -1.50% 7.23% 8.32% FY18 FY19 FY20 FY21 FY22 FY23 -EBITDA % Inventory Gain/Loss -LME ■Business Margin 24#25GRAVITA Improving MARKET DYNAMICS IN RECYCLING - Paradigm Shift We recycle to save environment Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT ↓ ↓ 1 Shift from informal to formal Improved logistics Tie-ups with OEM's More availability of domestic Reduced working capital cycle scrap Better capacity utilizations (5)#26Indian Lead Recycling Market (Cr) Shift from INFORMAL TO FORMAL With redefining of Battery Waste Management Rules (BWMR), Extended producers responsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in India 80% GRAVITA We recycle to save environment CPCB serves show-cause notice to battery manufacturers Battery Manufacturers NOTICE CPCB serves show-cause notice to battery manufacturers 24/09/2019 11:30am New Delhi, Sep 24 (KNN) The Central Pollution Control Board (CPCB) has served show-cause notice to battery manufacturing companies across the country, including those in Delhi, for violation of the batteries (Management and Handling) Rules "You are directed reply within 15 days as why to sale of new lead acid batteries manufactured by you shall not be restricted for failing to comply with batteries rules thereby causing potential damage to environment," the notice read, The apex pollution body has also asked the state pollution control boards to crackdown on illegal recycling of batteries I y ensuring that manufacturers and importers sell new lead acid batteries on through registered dealers. 65% 35% 75% Gravita having Pan India presence and association with OEM's will benefit the most from this shift repe Rajasthan State Pollution Control Board Headquarter, 4, Institutional Area, Jhalana Doongri, Jaipur-302004 Phone: 0141-2716907, 2716804 e-mail: [email protected] Toll Free HelpLine No.: 18001806127 Ext. 7 बैटरी डीलर्स के रजिस्ट्रेशन के सम्बंध में सूचना राजस्थान राज्य प्रदूषण नियंत्रण मण्डल के कार्यालय आदेश दिनांक 31.12.2020 द्वारा बैटरी डीलर्स को 31 मार्च 2021 तक रजिस्ट्रीकरण हेतु राज्य मण्डल के पोर्टल पर ऑन लाइन आवेदन प्रस्तुत (Submit) करने पर निर्धारित आवेदन शुल्क की राशि रू. 10,000/- (शब्दों में दस हजार मात्र) में शत प्रतिशत छूट दी गई थी। इसी क्रम में राज्य प्रदूषण नियंत्रण मण्डल द्वारा शुल्क में छूट दिनांक 30.06.2021 तक बढा दी गयी है। | अतः समस्त बैटरी डीलर्स से आग्रह है कि वे आवेदन शुल्क के भुगतान में इस छूट का लाभ उठाने के लिये अंतिम दिनांक 30.06.2021 से पूर्व ही रजिस्ट्रेशन हेतु ऑन लाइन आवेदन राज्य मण्डल को प्रस्तुत करें। ज्ञातव्य है कि 30.06.2021 के पश्चात शुल्क छूट को आगे नहीं बढ़ाया जायेगा एवं राज्य मण्डल दोषी बैटरी डीलर्स के विरूद्ध नियमानुसार कार्यवाही करेगा। किसी भी प्रकार की जानकारी के लिये राज्य मण्डल के सम्बन्धित क्षेत्रीय अधिकारी से सम्पर्क किया जा सकता है। राज. संवाद /सी/21/02 सदस्य सचिव TOI CITY Delhi Mumbai Bengaluru Hyderabad Kolkata Chennai Agra Agartala Ahmedabad Ajmer Alla Delhi: 90% batteries ending up in informal sector Jasjeev Gandhiok/TNN/Updated: Aug 21, 2019, 10:06 IST TIMESPOINTS UP NEXT Delhi: 90% batteries ending up in informal sector FACEBOOK in UND AA PRE 20% 25% 9000 12000 13875 FY16 Formal Segment FY23 FY26E ■Market Size Informal Segment *Source Management estimate Burn survivor critical, Delhi cops get DCW notice Sandeep Kumar becomes fourth AAP MLA to be disqualified 4 Civic bodies spray insecticides as Yamuna continues to... Representative image betv 26#27Sustainable Circular Business Model Last mile Procurement Lead, Aluminium, Plastic, and Rubber scrap from various sources. GRAVITA We recycle to save environment Continuous engagement to ensure customer satisfaction along with continual R&D. Customer Satisfaction/ R&D Ensuring quality meets industry standards. Timely and efficient delivery to OEM's. Quality Check & Delivery Business Model Value Added Products Segregation/ Sorting/ Quality Inspection Eco-friendly Processing Segregation and sorting of scrap materials with rigorous quality inspections. Smelting & Refining of Lead and Aluminium, Shredding and reprocessing plastic & rubber. Manufacturing of Lead Alloys, Red Lead and associated products, Aluminium Alloys and Plastic Granules. 27#28ENVIRONMENT, Social & Corporate Governance Deriving Value from Waste through Modern Recycling and Recovery GRAVITA We recycle to save environment 4 Recycling Verticals 11 Recycling Plants 2.05Lac+ MT Scrap Collection* 1.55Lac+ MT Products Delivered Waste Recycling Conserving Nature ISO 14001:2015 Certified Alternate Energy Source - Solar Clean Technology Initiatives • Lead - 113,156 MT recycled • Aluminium - 9,419 MT recycled • Plastics 13,043 MT recycled ▪ Low energy intensity of 3.4 GJ/MT of products (Approx 75% less from primary production) • Low water intensity of 0.233 KL/MT of products ■ 1.4 MW of solar capacity installed & expanding - generates 12% power for Phagi plant Plans underway to install solar at Mundra (India) and Ghana facility ■ 100% Zero Discharge plants Installed Sewerage & Effluent Treatment Plant and Neutralization system in factory premises for water treatment. 28#29Environment, SOCIAL & Corporate Governance Aiming to make Holistic & Meaningful Contributions to Society 4 Rounds of ESOPS 6% Women Employees *1.02 CR CSR Spending GRAVITA We recycle to save environment ISO 45001:2018 Certified Zero fatalities for FY23 Received Euro 34Mn Loan from development funds for Africa operations 100% Health insurance coverage for employees 60% of input sourced from sustainable means Gurukul platform with 3000+ skill enhancement courses at free of cost Best in class dormitories for workers working on site 29#30Environment, Social & CORPORATE GOVERNANCE Weaving a Culture Rich in Ethics, Accountability and Transparency 50% Independent Directors Board Composition • 50% Independent Directors on board & 16% board diversity GRAVITA We recycle to save environment ILA* Registered Plants ISO 9001:2015 Certified A+ Ratings by ICRA MCX Empaneled Brand Zero Complaints ▪ Zero complaints of ethical breaches and non-compliance with statutory requirements across our plants. Achievements Recognized as a 4-star Export House by the Government of India. MCX empaneled brand for refined Lead. Executive Compensation Policy ■Compensation for Directors, KMP, and Senior Management are designed to strike balance between fixed and incentive-based components to drive business growth Detailed Disclosures • Materiality Policy, Related Party Transactions, Certifications, and other material information are promptly disclosed in all public documents *ILA - International Lead Association, a global Lead trade association 30#31Thank You SAVE THE PLANET Company Contact: Mr. Nitin Gupta (Company Secretary) Gravita India Limited CIN:L29308RJ1992PLC006870 [email protected] M: +91 70733 32660 Investor Relations Contact: Sana Kapoor Go India Advisors [email protected] M: +91 81465 50469 Sheetal Khanduja Go India Advisors [email protected] M: +91 97693 64166