#1PARRYS UNLOCKING VALUE DELIVERING PERFORMANCE E.I.D.- Parry (India) Limited Investor Presentation | December 2019 murugappa#2PARRYS DISCLAIMER Certain statements included in this presentation may be forward looking statements made based on management's current expectations and beliefs concerning future developments and their potential effects upon E.I.D.-Parry (India) Limited and its subsidiaries. There can be no assurance that future developments affecting E.I.D.-Parry (India) Limited and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks, uncertainties and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. E.I.D.-Parry (India) Limited does not intend and is under no obligation, to update any particular forward-looking statement included in this presentation. The facts and figures mentioned in this presentation is for informational purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of the Company, or the solicitation of any bid from you or any investor or an offer to subscribe for or purchase securities of the Company, and nothing contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Nothing in the foregoing shall constitute and/or deem to constitute an offer or an invitation to an offer, to be made to the Indian public or any section thereof or any other jurisdiction through this presentation, and this presentation and its contents should not be construed to be a prospectus in India or elsewhere. This document has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any other jurisdiction or by any stock exchanges in India or elsewhere. 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The Company or any other parties whose names appear herein shall not be liable for any statements made here in or any event or circumstance arising there from. 2 murugappa#3Flow of Presentation Overview of E.I.D.- Parry (India) Limited Global Sugar Scenario Indian Sugar Scenario EID Sugar Business Sugar Refinery Nutraceuticals Division Historical Financials#41 OVERVIEW As pure as it gets EID, South India's largest sugar producers, adheres to the highest standards of quality and specifications, bringing customers the finest quality of sugar#5Vision & Mission "Enriching and Energizing by creating value added products from agriculture" Make the brand Parrys the most preferred choice to achieve Sustainable and Profitable growth PARRYS 5 murugappa#6Business overview - EID Parry India Mi Revenue (FY19) * 3,538 Cr Pony's Aure Sugar, Co-gen & Distillery Leading Sugar producer in South India ❖ 8 sugar factories and standalone distillery spread across South India Plants 15 White Label Amrit Amrit SUGAR Parry's 908 PARRYS E.I.D-PARRY (INDIA) LIMITED PARRYS Market Cap 29 Billion (30 Sep 2019) Nutritional Health Supplements ❖ Market leader in micro-algae; Leading producer of Organic Spirulina ✰ Developer & provider of high quality nature-sourced ingredients for human health ✰ Partnership with Synthite Industries Spirulina Chlore cea- Spiridis Thanks PRUNG ENTR Port-based sugar refinery in Kakinada ❖ First company in Asia to get Bonsucro International Certification for sustainable sugar production 6 murugappa#7A company with more than 230 years of legacy 1788 Thomas Parry arrived in Madras to establish the House of Parry 1839 The firm became "Parry & Co" in 1956 East India Distilleries & Sugar factories Ltd. bought 100% stake in Parry & Co. 1981 EID becomes part of Murugappa group 1995 Start of bio pesticides 2003 Hived off farm inputs to Coromandel 2006 Divests Parryware to Roca, Spain 2010 Acquired 4 Sugar factories in KN & AP Set-up the country's first sugar plant at Nellikuppam 1788 EID Parry incorporated 1975 Start of distillery operations 1848 EID was in varied businesses. such as sugar, fertilizers, chemicals, sanitary ware etc. 1990s Start of algal based Nutraceuticals 1997 Divests confectionary business to Lotte, South Korea; Pioneering launch of branded retail sugar 2004 Established Sugar refinery at Kakinada 2008 Hived off Bio division to Coromandel 2018 PARRYS 7 murugappa#82 Global Sugar Scenario Opportunities with riders Growth coupled with shifting regulatory scenarios#9Global sugar consumption expected to moderate 1.8% CAGR (%) 203 183 2.0% 172 152 141 2006 2010 2016 2020 Annual world sugar consumption (Million Metric Tons) Source: FAO, Copersucar analysis 2026 ✰ Global Sugar Market is expected to grow at a CAGR of 1.8% until 2026 PARRYS Africa, China, India, Asia - Contribution to grow from 56% to 61% 9 murugappa#10Real value per million metric ton 15 8.78 9.13 10 5 O -5 -10 -15 -20 06/07 11.75 11.52 4.30 All 8.02 Large global deficit estimated for SY 2019-20 Global production surplus/deficit and raw sugar price average (Oct/Sep basis) 11.41 30 -7.62 -6.34 3.39 25 2.84 0.23 0.52 20 -15.98 07/08 08/09 09/10 10/11 11/12 Source: S&P Global Platt Analytics 12/13 ✰ Lower production in Brazil, India and Thailand 13/14 14/15 15/16 16/17 previous estimates 17/18 18/19 -6.16 15 Deficit yet Cents per Pound 19/20* 20/21* 10 to be fully priced PARRYS 10 murugappa#113 Indian Sugar Scenario Steadying the giant Managing business cyclicality in a highly-regulated eco-system#12India - World's largest sugar producer & consumer Industry Size Operating Mills Private(50%) * 105,000 Cr 525 Co-op(44%) (US$ 15 Bn) Others (6%) Farmers 50 Million 5 million workers Production UP 80% Maharashtra Karnataka Planted area 5 Million Hectares 415 MMT of sugarcane Consumption 26 MMT Per Capita 19kg Source: ISMA PARRYS 12 murugappa#13Increasing sugarcane & sugar production in India Cane Area & Yield / Hectare Sugar production (MMT) 82 75 70 70 72 67 69 65 64 61 SY10 SY11 SY12 SY13 SY14 SY15 SY16 SY17 SY18 SY19 SY10 SY11 SY12 SY13 SY14 SY15 SY16 SY17 SY18 SY19 I Cane Area (Million hectare) -Yield (Metric Ton/hectare) Sugarcane production (MMT) SY10 Source: ISMA 415 SY11 SY12 SY13 SY14 SY15 SY16 SY17 SY18 SY19 Key Takeaways ❖ Increasing cane area. sugarcane the most attractive crop for the farmer Yields have also increased - adoption of high. yielding cane varieties ❖ Significant growth in sugar production increasing recovery - 13 PARRYS murugappa#14Price (*/MT) 1000 1100 1298 1000 1391 1120 14,692 11,517 9,988 6,698 5,258 5,341 1080 1285 1450 1250 1700 1350 Sugarcane price significantly higher than competitive crops PARRYS 1310 1400 2100 1450 1360 2200 2009-10 2010-11 2011-12 2012-13 2015-16 2016-17 2017-18 2018-19 2013-14 2014-15 ■Paddy Wheat Sugarcane ■ Estimated profitability per acre by crop (average land holding by farmer is ~ 1 acre) 25,464 1,345 Rice Jowar Bajra Maize Wheat Barley Ragi Gram Lentil Tur Moong Urad Sugarcane Source: CACP, Ministry of Agriculture, Agmarknet, CEIC, CMIE, Axis Capital estimates 19,285 17,633 17,880 14 7,336 murugappa 16,260 1410 1525 2300 1470 1625 2300 1550 1735 2550 1750 1840 2750#15Varietal adoption has resulted in increase in recovery % Sugar Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 All India 10.2 10.2 10.3 10.0 10.2 10.4 10.6 10.4 10.7 10.9 Uttar Pradesh 9.1 9.1 9.1 9.2 9.3 9.5 10.6 10.6 10.8 11.5 Maharashtra 11.5 11.3 11.7 11.4 11.4 11.3 11.3 11.3 11.2 11.3 Karnataka 10.7 10.9 11.1 10.4 11.0 11.1 10.7 10.2 10.6 10.6 Source: ISMA State-wise recovery % 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 India Uttar Pradesh Maharashtra Karnataka Key Takeaways All India recovery % has increased by 65 basis points ❖ Significant improvement in recovery % in Uttar Pradesh due to CO 238 PARRYS 15 murugappa#16Million Mteric Tons Production outstrips consumption 33.7 32.3 28.3 26.3 26.0 25.1 25.1 24.4 24.4 24.5 21.3 25.6 21 8 25.5 26.0 26.0 24.2 22.6 22.8 Drought 20.7 20.3 18.9 9.3 9.1 7.5 7.8 5.8 6.0 6.6 3.9 SY10 SY11 SY12 SY13 SY14 -Production Source: ISMA 14.3 10.4 \8.3 SY15 SY16 SY17 SY18 SY19 SY20E ▶Consumption -Stocks Huge stock levels cap the domestic sugar prices 16 murugappa PARRYS#17India Sugar Balance (Million Metric Tons) Sugar Year 2018-19 2019-20E Opening stock 10.4 14.3 Production 33.7 26.0 Consumption Domestic 26.0 26.0 Exports 3.8 6.0 Closing stock (including 14.3 8.3 Huge stock levels - 4 months sales - cap the buffer stock) domestic sugar prices PARRYS murugappa#18Cane cost as a % of sugar realization has increased 3,148 2,951 2,951 2,917 2,727 2,492 3,620 3,121 3,141 3,100 3.000 2,550 2,613 2,613 2,100 2,200 2,300 2,300 1,700 1,298 1,391 1,450 SY10 SY11 SY12 SY13 SY14 SY15 SY16 SY17 SY18 SY19 SY20E -Cane Price --Sugar Price Cane price per Metric Ton Sugar price per quintal ₹ Source: ISMA Key Takeaways PARRYS Selling price of sugar regulated by the Government based on market factors Payment for ܀ sugarcane based on Fair & Remunerative Price @ 9.5% 10% recovery (not linked to selling price of sugar) Cane cost as a % of sugar price has increased from 44% to 86% over the last decade 18 murugappa#19Business Cyclicality & Industry Challenges Induced Cyclicality Industry Challenges Higher sugar production Higher sugarcane production 1 Improved profitability; Low sugarcane arrears 4-5 years Decline in sugar prices; Lower Profitability 2-3 years High sugarcane arrears 1 Decline in area under cultivation; Lower sugar cane production - Narrowing Spreads (Sugar price Cane price) ❖ Cane, Sugar, Power and Ethanol prices. controlled by GOI Stock surplus and depressed prices Seasonal run of plants - Average Operating days reducing from 180 to 120 ❖ Huge stress on water availability ✰ Decline of farming generation Lower sugar availability; Increase in sugar prices Lower sugar production PARRYS 19 murugappa#20Government Reforms in Sugar Sector Short Term ✰ Zero export duty - Mills incentivized to export a proportion of their production ❖ Minimum Selling Price for sugar ❖ Maintenance of buffer stock to limit quantum available for sales ❖ Restriction on monthly sale of sugar by mills through Release Order mechanism Long Term - 10% Ethanol Blending Program Opportunity for sugar mills to expand into distilleries with investment subsidies ◆ Procurement price fixed for ethanol made from different molasses sources ❖ Five year off take commitment by government * 5 MMT of Sugar expected to be diverted, providing stability to sugar prices by managing surplus 20 20 PARRYS murugappa#214 EID Sugar Business Newer fields, better yields Maximizing value by better capacity utilization, de- commoditization & profitable use of by-products#22PARRYS Sugar Operations - "Farm" to "Farm" An integrated sugar factory produces sugar, power for export, ethanol and organic manure Sugar Cane Cane Juice Sugar Mill SUGAR Sugar Waste to wealth Molasses Press Mud Bagasse H Power Plant Power - Grid Distillery Rectified Ethanol ENA Waste Water/ Spent Wash Spirit ☑ L Ash Sugar KASH ➡► - Organic Manure Plant Bio-compost ▸ Manure H Cane Farm 22 murugappa#23Sugar - Manufacturing capacities PARRYS Crushing (TCD) Co-Gen (MW) Distillery (KLPD) AP - Sankili 5,000 16.0 45 KN - Haliyal 7,500 31.0 50 KN - Bagalkot 6,000 15.5 KN - Ramdurg 5,000 13.0 TN - Nellikuppam 7,500 24.5 75 TN - Pugalur 4,800 22.0 TN - Pudukottai 4,500 18.0 TN - Pettavaithalai 3,500 20.0 TN - Sivaganga 64 43,800 160.0 234 23 murugappa#2429.3 55.2 10.3% 10.3% FY15 FY16 24.8 55.9 9.6% Operational performance - Sugar Cane Crush & Recovery Sugar Production & Sales 44.4 Average realization per kg (₹) 36.7 10.0% 10.1% 37.2 FY15 FY17 FY18 FY19 Cane Crush (LMT) Recovery % 36.8 34.3 FY15 FY16 FY17 FY18 FY19 31.0 5.7 5.5 5.9 7.4 4.3 4.8 4.9 FY16 FY17 FY18 ■Sugar Production (LMT) ■Sugar Sales (LMT) ❖ Reduced cane availability Tamil Nadu Lower recovery in Tamil Nadu ✰ Lower average realization per kg - Drought in 24 24 murugappa 3.9 FY19 3.8 4.0 PARRYS#2555.2 55.9 44.4 36.7 3,503 3,280 Operational performance - Co-gen 4,667 Cane Crush & Power generated 6,521 5,540 Power export & Average realization per unit (*) 4.9 4.4 3.8 Lower sugarcane volume resulted in lower generation of power Tamil Nadu locations out of Power Purchase Agreement (PPA) ✰ IEX realization also lower than PPA 37.2 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Cane Crush (LMT) Power generated (Lakh units) Power export (Lakh units) Average realization per unit 4,891 25 25 murugappa 4,142 3,519 1,857 3.9 3.2 1,636 PARRYS#2655.2 643 657 705 Operational performance - Distillery Cane Crush & Alcohol produced Alcohol sales & Average realization per liter (*) 55.9 44.4 36.7 664 37.2 647 43.4 40.9 FY15 FY16 FY17 FY18 FYF19 FY15 Cane Crush (LMT) Alcohol produced (Lakh Ltrs) FY16 Alcohol Sales (Lakh Ltrs) FY17 Performance for FY 2018-19 impacted on account of: Low molasses availability due to lower crushing High cost of bought-out molasses 610 676 679 45.2 609 FY18 Average realization per Liter 26 murugappa 49.1 46.1 662 FY19 PARRYS#27Financial Summary - Sugar Revenue (in Crores) FY15 FY16 FY17 FY18 FY19 104 EBIT ( in Crores) 258 3 -40 FY15 FY16 FY17 FY18 FY19 Capital employed (in Crores) -95 FY15 FY16 FY17 FY18 FY19 PARRYS Particulars UOM FY15 FY16 FY17 FY18 FY19 Particulars UOM FY15 FY16 FY17 FY18 FY19 Cane Crush LMT 55.2 55.9 44.4 36.7 37.2 Recovery % 10.3% 10.3% 9.6% 10.0% 10.1% Power generated Power export L Units 4,667 6,521 5,540 3,503 3,280 L Units 4,891 4,142 3,519 1,857 1,636 Sugar produced LMT 5.7 5.9 4.3 4.9 3.8 Average realization ₹ 4.4 4.9 3.8 3.9 3.2 Sugar Sold LMT 5.5 7.4 4.8 3.9 4.0 Alcohol produced LL 643 657 705 664 647 Average realization ₹ 29.3 24.8 34.3 36.8 31.0 Alcohol sold LL 610 676 679 609 662 Capacity utilization % 86% 79% 68% 56% 57% Average realization ₹ 43.4 40.9 45.2 49.1 46.1 27 murugappa#28Sugar Business - What Challenges we face? Restricted Sugar sales due to Release Order Mechanism - Impact on Cash Flow Higher Cane cost in TN due to lower recoveries than the FRP recovery of 9.5% for Lower Sugar Realization due to surplus stocks Decreasing sugarcane planting (acreage) in TN due to continuous drought Cane price higher in TN/ AP as freight charges are paid by mills over and above FRP Non operating units in TN - lower capacity utilization & Cane Crush and Lower realization in Power PARRYS 28 murugappa#29Our Future Plans & Strategy Increase volume of sugar ❖ Relocate assets to area of higher and assured cane availability and higher recovery Maximise realization from sugar Increase ܀ volumes in Retail & Institutional segments Introduce differentiated & value added products New Opportunities ✰ Ethanol - 01 10 03 New distillery in Bagalkot (60 KLPD) 20 02 04 50 Reduction in fixed cost Realignment of manpower Bagasse ܀ 29 29 PARRYS murugappa#305 Sugar Refinery Sweeter up the value chain Adding value & volume to manage restricted spread environments, increase profitability and create premium customer segments#31Refinery Business Model Physical Flow PARRYS wise GEEK Raw Sugar Refining Refined Sugar Spread As sugar prices are extremely volatile, we hedge purchase & sales prices on international commodity exchange ICE - New York (Raw Sugar) White Premium ICE - London (Refined Sugar) Spread = White Premium - Freight from Origin for Raw Sugar 31 PARRYS Break Bulk Containers murugappa#32Refinery - Business Profile 01 Overview PARRYS 02 . Capacity - 8.5 LMT • Sales volume - 5.4 LMT • Sales value 1,421 Crores - Global Trade Houses ALVEAN LDC. ED wilmar S&D ED&F MAN • Customers Regional Traders . Institutions Mondelēz International pepsi PERFETTI 04 03 Suppliers Certifications • Raw Sugar Ex Brazil through Global Trade Houses • Coal ex Indonesia through Traders VIGAN BON SUCRO KOSHER ISO SMETA MALEL P015 FSSC 22000 PARRYS 32 murugappa#33Refined sugar constitutes 40% of the global traded volumes PSRIPL operates in this 40% business space Global Trade White 23.6 Raw 35.4 1/3rd 57 175 Consumption 118 In production country Production Consumption MMT Source: Sucden Research 60% 51 48% 64 46% PARRYS 3% +1% 6% 5% -1% 9% Target Market 8% 9% 7% 10% Target 25% 22% Market 2016 2026 India Mexico Australia Thailand Brazil ROW Russia Indonesia China USA UE Africa ❖ Refined Sugar trade set to increase Source: FAO, Copersucar analysis 33 murugappa#34White Premium Trends - EU Impact and Refinery Closures European Exports & The White Sugar Premium White Premium Trends and Projections (US$/MT) PARRYS $/mt 250 EU 105 Re-entry 200 150 127 112 110 Closure of re-export refineries 108 98 95 A 85 85 100 83 '000s mt EU Exports -White Sugar Premium (continuation) 8,000 Refinery 7,000 Plan developed 6,000 5,000 4,000 3,000 2,000 1,000 0 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Source: ASR Group 150 Spread available for next 5 years = = 40-45 US$/MT 80 82 85 86 83 2011-12 2012-13 2013-14 2014-15 90 85 81 2015-16 2016-17 2017-18 2018-19 Historical Low 78 75 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2009-10 2006-7 2007-8 2008-9 2010-11 ✰ Due to entry of EU and lower White Premium refining capacity is getting rationalized, a trend that is expected to continue. Many refineries in Israel, Chile, Bahrain, etc. have closed while some in Dubai, Yemen, Egypt are operating at lower capacity 34 murugappa#35Our Journey so far Factory Profitable & Sustainable Business Costs to be controlled within the Spread Independent profitable toller Sales Premiums to be earned over and above spreads Make profits net of FOB charges $ Forex Hedge Desk Commodity Hedge Desk As spreads have fallen, some refiners closed, our operating efficiency improvements have helped us to survive 35 PARRYS murugappa#36Our Future Plans & Strategy "Ensure year on year profitability under restricted spread environment and Repay Long Term loans out of cash generation" Increase Sales & Move up Value chain Cost improvements (Cost < Spread) Destination CFR Sales 1 * Debottlenecking Insti - Graded 2 ✰ Yield Improvement Institution Trade - Containers 3 ❖ Handling & Logistics Trade - Break Bulk Commodity Exchange PARRYS 36 murugappa#376 Nutraceuticals Division Strength & Presence To supplement growth Expanding reach via new markets, and greater brand exposure Consolidating leadership through flagship products#38Parry Nutraceuticals PARRYS Wigh Parry Nutraceuticals will focus on the business of natural products for human wellness through Health Supplements and Functional Foods by offering high quality products backed by science, addressing the global market Become the #1 Expert Recommended, Consumer Preferred Supplement Brand in Prostate Health 38 murugappa#39Business Overview - Nutraceuticals Prostate Pillar EID NUTRA 212 Cr Green Foods - Spirulina & Chlorella Joint Pillar & Asta usp CONTRUS APPROVE Manufacturing Locations Other Carotenoids & Phytochemicals - Lutein, Lycopene Green Foods - India (Oonaiyur, near Trichy) Lycopene - Carotenoids & Phytochemicals, Pune Astaxanthin - La Serena, Chile Certifications CO2 extraction - Florida USA USDA ORGANIC LECO CERT BUREAU VERITAS HALAL FOOD CERTIFIE حلال HALAL 100% 39 39 Naturland murugappa PARRYS#40Nutraceuticals -Today, A $230 bn Industry Aging population, growth of digital, self-care & health-consciousness are among the key drivers of self-care in APAC Aging population Key trends & drivers $ Growth in middle class & overall disposable income Rise of technology - mobile & digital and genetic Increased accessibility to OTC Increased self-care & medication " Potential implications Enhance focus on elderly-related OTC product portfolio Develop innovative methods to increase accessibility of aging population Improve product quality & branding through targeting attractive consumer trends, allocating resources to high-potential segments, and developing star / "hero" products Leverage on digital MCM - mobile app, social media, 3rd party sites Leverage on digital pharma retail to increase reach and enable business-to- doorstep delivery ⚫ Strike appropriate partnership choices to drive action e.g. GSK Optimize channel coverage with fast-growing e-commerce channels Maintain focus on brick-and-mortar (50-70% OTC sales across APAC) Leverage on prescription-to-OTC switch In-store promotions & engagement with pharmacists, HCPs as they remain a trusted source of info for OTC consumers Increased health consciousness & awareness Use of substantiated claims / RWI for increasingly savvy consumers Increased preference for natural products Growth Innovation " Focus marketing on product safety & efficacy ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Source: Secondary research, IQVIA MIDAS, IQVIA analysis IQVIA CH Conclave, Sep 2018 #not to be circulated without IQVIA consent IQVIA™ 3 40 PARRYS murugappa#41Industry expected to grow at a CAGR 7.8% Dietary Supplements ($ 70 Bn CAGR 6.8%) Functional Foods & Beverages ($ 160 Bn CAGR 8.2%) Vitamins & Minerals Functional Foods Functional Beverages Herbal & Traditional Medicines Probiotic Fortified Energy Drinks Probiotics Proteins Protein Supplements Omega Fatty Acid Fortified Sports Drink Protein Bars Fortified Juices Source: BCC research on Nutraceutical global market, 2018 41 PARRYS murugappa#42Dietary Supplements Prostate Health Saw Palmetto Greens Spirulina, Chlorella & Phyco Joint Health Astaxanthin EID addresses the Dietary Supplements segments through 3 Key Pillars Market is valued at $70 Bn with an expected CAGR of 6.8% APAC is the biggest and fastest growing region followed by US. While Vitamins and Minerals is the biggest sub segment, Protein and Probiotics are the fastest growing categories Algae based Dietary Supplements forms a 4% share of the DS market Saw Palmetto forms 2% of DS market PARRYS VITAMINS AND MINERALS ARE THE MOST POPULAR CATEGORY OF DIETARY SUPPLEMENTS Vitamins and Minerals TOP 5 SUPPLEMENTS IN CATEGORY multivitamin 78% vitamin D 32% 98% vitamin C 27% calcium 24% vitamin B/B complex 18% 98% of supplement users take vitamins and minerals Specialty Supplements 45% TOP 5 SUPPLEMENTS IN CATEGORY omega-3/fatty acids 19% fiber 13% probiotics 12% glucosamine/chondroitin 8% melatonin 8% CoQ10 8% Source: BCC research on nutraceutical global market, 2018 Market watch.com, TechSci research.com and Grandview research 45% of supplement users take digestive enzymes 5% specialty supplements 42 murugappa#43Our Future Plans & Strategy - Nutraceuticals Consolidate leadership position in Organic Spirulina and other algae; Increase market share Expand in new geographies - Latin America, United Kingdom, etc. X Introduce incremental innovation through formats and combinations # Improve brand equity - on the back of customer & scientific validations H 38058 Foray into B2C segment in US Nutra and increase the size of Prostate segment Launch color segment and target top color houses through Phycocyanin - Maximum value generation from Astaxanthin – strengthen Joint Health segment PARRYS 43 murugappa#447 Historical Financials Refined & Ready Focused on delivering stakeholder value through quality products and smart strategies to thrive in challenging & changing business environment#45Profit & Loss Summary (* Crores) Particulars Gross Revenue EBIT Interest Profit Before Tax Tax Profit After Tax PARRYS FY15 FY16 FY17 FY18 FY19 2,815 4,111 4,667 4,931 3,538 189 67 472* 164 283 210 230 194 157 174 (22) (163) 278 7 109 (11) (28) (24) 6 31 (10) (135) 302 1 79 *FY19 includes 243 Cr on account of Bio Sale proceeds 445 murugappa#46Balance Sheet Summary (* Crores) Particulars Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Shareholders Funds 986 915 1,117 1,116 1,223 Borrowings 2,534 2,467 1,694 1,742 2,170 Deferred Tax Liability / (Asset) 56 (1) (63) (71) (60) Capital Employed 3,576 3,381 2,749 2,787 3,333 Net Fixed Assets 2,089 2,071 1,961 1,875 1,792 Investments 137 294 301 449 339 Goodwill 37 25 25 25 25 Net Working Capital 1,314 991 462 439 1,177 Capital Employed 3,576 3,381 2,749 2,787 3,333 PARRYS 46 murugappa#47Glossary of terms Abbreviation / Rs. Description Indian Rupees '000 Units in thousands AP Andhra Pradesh Abbreviation EBP EID / EIDP ENA Description Ethanol Blending Program E.I.D.-Parry (India) Limited Extra Neutral alcohol APAC Asia Pacific EU European Union ATL Above the Line FC Fixed cost B2B Business to Business FDA Food & Drug Association B2C Business to Customer FRP Fair & Remunerative Price B / Bn. Billion FY Financial Year BTL Below the Line GOI Government of India CAGR Compounded Annual Growth Rate На Cr. Crores ICE Hectares Intercontinental Exchange DS Dietary Supplements IEX Indian Energy Exchange Limited EBIT Earnings Before Interest & Tax ISMA Indian Sugar Mills Association PARRYS 47 murugappa#48Glossary of terms Abbreviation Description kg Kilo grams KLPD Kilo Liters per Day SP Abbreviation SEZ Description Special Economic Zone Saw Palmetto KN Karnataka SY Sugar Year L Lakh TCD Tons Crush per Day LATAM Latin America TN Tamil Nadu LL Lakh Liters TPD Tons Produced per Day LMT Lakh Metric Tons UOM Unit of Measure MMT Million Metric Tons UP Mn. / M Million US / USA Uttar Pradesh United States of America MT Metric Tons US$/ USD United States Dollar MW Mega Watt VAP Value Added Products OMC Oil Manufacturing Companies VC Variable cost PPA Qty. Power Purchase Agreement Quantity Y-o-Y Year on Year PARRYS 48 murugappa#49THANK YOU