#1K Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. Investor Presentation December 2020#21 K Bodal Chemicals Ltd." Safe Harbor Certain statements in this document may be forward looking statements. Such forward looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward- looking statements. Bodal Chemicals Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. www.bodal.com#3K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Bodal Chemicals Limited (BCL) at a Glance BCL is one of the largest manufacturers and exporters of multiple chemical products including Dyestuffs, Dye Intermediates, Basic Chemicals, and its variants. BCL's wide range of products make it a well-integrated player enjoying a lowered cost of production. Besides, BCL is also an end-to-end solution provider for its customers. 30+ years of experience (Incorporated in the year 1989) 70+ Distributors Network Across India 10 Manufacturing Facilities 10 7 Domestic Depots and ¦ 3 Overseas Depots (China, Turkey & Bangladesh) 1,560+ 600+ Domestic Employees Numbers of Customers 1,500+ Contract Labours 6 Operating Subsidiaries 150+ Overseas Customers 30+ Overseas Employees 200+ Product Choice 2 www.bodal.com#43 К Bodal Chemicals Ltd." In line with Atamanirbhar Bharat Abhiyan In-line with the govt. initiative to reduce dependency on import of Chemicals through rigorous in-house innovation Strengthening global foothold to mark a sizeable contribution in the export of the Chemicals from India 1131 Progressing well to meet the demand through a clear focus on capacity expansion MAKE IN INDIA Powering 'Atamanirbhar Bharat Abhiyan' through continuous Innovation and product development to cater the requirement of end-use industries in Domestic and Global Market www.bodal.com#5The Ethos - Vision and Mission 4 K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Vision To become one of the prominent chemical company with distinctive integrated production models and varied products portfolio on a global arena. Mission To achieve sustainable growth in business by providing best quality products & services to customers, taking utmost care of all our stakeholders and focus on Environment, Social and Governance policies. www.bodal.com#6Visionary Team - Our KMP's K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Mr. Suresh J. Patel Chairman & MD Dynamic A man who doesn't need an introduction in the world of Chemicals especially Dye Intermediates. persona with revolutionary and always keep rising attitude. He is the face of the company, founder and the backbone of BCL. He has an experience in manufacturing of chemicals over 3 decades. He continues to inspire the senior management team towards growth and excellence. Mr. Bhavin S. Patel, Executive Director He is the second generation entrepreneur and new-age visionary personality. With specialization in chemistry on education front, he is having about 17 years of experience in the field of chemicals. Under his leadership, 'BODAL' immerged as the brand and BCL was able to mark its presence around the globe. Pioneer of Dyestuffs division, having vision of uprising globally and embarks Bodal around the world by setting up and taking care of international subsidiaries. Mr. Ankit S. Patel, Executive Director He holds a graduate degree in economics from University of Nevada and a master's degree in business administration from Devry University, USA. He has been associated with the Company for 13 years. He heads the Basic Chemicals division at the Company, including production, sales, and expansion plans. He has been significantly involved in the development of the sulphuric acid plant of the Company. He is leading the upcoming chemicals projects of Chemicals Ltd. basic Bodal Mr. Mayur Padhya CFO He holds a graduate degree in commerce from H.L. Commerce College. He is qualified as a chartered accountant and cost & management accountant. He is a senior corporate financial management executive with more than 25 years of experience. He handles finance, corporate affairs, and investor relationship. He also supervises accounts, secretarial, internal audit, and exports for the Company. He has been associated with the Company for 20 years. 5 www.bodal.com#7K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Key Strengths of the Bodal Chemicals Strong and Experienced management team With 30+ years of experience and impressive educational background of leaders coupled with extensive knowledge of the chemical industry enables BCL to meet its strategic goals 4444 Integrated Business Model 68 BCL is the most integrated Dyestuffs Company in India. This allows approx. 48% of the Basic Chemical to be captively consumed by Dye Intermediates and approx. 43% of Dye Intermediates output to be consumed by Dyestuffs, giving Bodal a cost- competitive advantage Strong Relations with Marquee Clients An integrated business model, ease of product availability and strict quality adherence have made Bodal a partner of choice for customers 6 Organic & ☐ Inorganic Growth Through acquisition of manufacturing units and marketing unit, BCL has resorted to skillful growth via organic and inorganic mediums Robust Financials • Total Revenues from Operations increased by 157% (10% CAGR) to 12,318 Million in 2019-20 from 4,793 Million in 2009-10 EBITDA increased by 200% (12% CAGR) to 1,580 Million in 2019-20 as compared to 527 Million in 2009-10 www.bodal.com#8K Bodal Chemicals Ltd." COLAUSE INTERSATION INN WWTH Key Milestones - The brand Story 1989-90 1993 2006 Got listed on BSE. Reverse merger with DintexDye Chem (Unit 1). Acquired Unit IV 2007 Started building Unit VII at world-class mega site Acquired Unit II-B | Acquired Unit III 1996-2005 2008 1994 Changed name to Bodal Chemicals Pvt. Ltd. Acquired Unit VIII. closed Unit V and Unit VI 2010 Backward integration: Basic Chemicals at Unit VII 2017 Acquired 70% stake in SPS Processors (Zero Discharge). Acquired stake in Trion Chemicals, TCCA specialist (Zero Discharge) 2018 Dyestuffs capacity expansion by 12,000 MTPA. Further installed additional 5MW co-generation powerplant 2019 Incorporation of subsidiaries (in India, China & Bangladesh). Enhanced Dyestuffs capacity by 6,000 MTPA. Enhanced TC capacity 2011-2016 by 36,000 MTPA. Acquired 80% stake in SEN-ERBOYA (a Turkish entity) Recognized as Bluesign System partner 2020 Acquired 100% stake in Trion Chemicals 1989 Started as JK Pharma at Unit II-A 7 1997 Acquired Unit V | Acquired Unit VI 2011 Completed Unit VII 2012 & 2013 Industry Downturn 2004 2013 & 2015 1991-1995 Acquired Unit | Enhanced 2006-2010 MEEP at Unit I, Unit VII 2017- onward competency through forward integration in Dyestuffs segment at Unit I 2014 Turnaround 2016 Amalgamation: BodalAgrotech, LABSA, Unit X (Zero Discharge) www.bodal.com#9Bodal Group Companies Stake (%) Product / Activity Sr. No. Name of Subsidiary / Location 1 Trion Chemicals Pvt. Ltd. (TCPL) - 100% Trichloroisocyanuric Acid (Khambat, Gujarat) 2 SPS Processors Pvt. Ltd. (SPS) - (Kosi, Uttar Pradesh) 70% H Acid 8 K Bodal Chemicals Ltd." COLOUR INTERSATION INNOVATION Total Capacity 12,000 MTPA 3,000 MTPA (with de bottlenecking done recently) 6,000 MTPA Vinyl Sulphone 3 - Bodal Chemicals Trading Private Ltd. (BCTPL) (Gujarat) 100% Trading and Marketing subsidiary NA 4 Bodal Chemicals Trading Shijiazhuang Co. Ltd. (China) 100% Trading & Marketing subsidiary for China and adjacent countries NA 5 Sen-er Boya Kimya Tekstil Sanayi Ve 80% Standardizing, trading, and NA marketing subsidiary for Turkey Ticaret Ltd. (SEN-ER BOYA) - (Turkey) 6 Bodal Bangla Ltd. - (Bangladesh) 100% Trading & Marketing subsidiary for Bangladesh NA Step-down Subsidiaries: 100% Trading & Marketing subsidiary for ΝΑ Senpa Dis Ticaret Anonim Sirketi - (Turkey) Uzbekistan and adjacent countries www.bodal.com#10Subsidiaries Performance 9 K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION SUBSIDIARY UNIT SPS Processors Pvt. Ltd. (SPS) (Kosi, Uttar Pradesh) Trion Chemicals Pvt. Ltd. (TCPL) (Khambat, Gujarat) Sen-er Boya Kimya Tekstil Sanayi Ve Ticaret Ltd. (SEN-ER BOYA) - (Turkey) DESCRIPTION ON THE PRODUCTION & SALES PERFORMANCE BCL has recently added 6,000 MTPA of Vinyl Sulphone plant along with existing capacity of H-acid of 3,000 MTPA. The effluents of H-acid can be used in production of VS and effluents of VS can be used in production of H-acid. This will lead to higher operational efficiency and profitability for SPS Plant. VS plant at SPS is expected to be operational by early FY22. In the Trion plant, demand for TCCA in the USA has improved recently and due to correction in raw material prices in the recent quarters such as Caustic Soda and Chlorine, the margins have improved also. BCL is expecting a gradual increase in profitability from Trion Unit in the upcoming quarters. Before acquisition of Sen-er Boya unit, the sales were nearly 80 - 100 MT per month, which has improved to ~200 MT pm and going forward with a strong distribution network BCL is expected to strike ~300 MT pm sales in next 6-12 months. www.bodal.com#11K Bodal Chemicals Ltd." Highly Integrated and Cost-efficient Business Model Approx. 48% of the Basic Chemical to be captively consumed by Dye Intermediates and approx. 43% of Dye Intermediates output to be consumed by Dyestuffs, giving BCL a cost-competitive advantage Manufacturing Value Chain Input Materials-part/full in-house Input Materials-external Bodal Chemicals Products End use industries 10 Input Materials Basic Chemicals Dye Intermediates Dyestuff Trion Chemicals End Use Industry Water Vinyl Sulphone + Derivatives Reactive Dyes Textiles Para Nitro Aniline Ice H Acid Beta Naphthol Steam DASA Sulphuric Acid Power Acid Dyes Leather FC Acid Chloro Sulphonic Acid Sulphur Aniline Oleum 65% Oleum 23% Gamma Acid Direct Dyes Paper Naphthalene Sodium Bi Sulphate K Acid PNCB Acetanilide Meta Ureido Aniline Liquid Dyes Detergent Caustic Soda Thionyl Chloride Other Specialty Intermediates TCCA Water Treatment Chlorine www.bodal.com#12K Bodal Chemicals Ltd." Rigorous Integration to achieve Operational Efficiency 11 STRATEGIC DECISIONS Adding capacities into core business. Expanding reach into different geographies. Integration of business. Gradual margins expansion. UP AND RUNNING ACTIONS Expansion of Dyestuffs capacity by 18,000 MTPA in the last two years to improve margins. Acquired 100% stake in Trion Chemicals to turn it into a profitable business in the near term. Addition of VS plant with 6,000 MTPA capacity at SPS. N Acquired 80% stake in Turkish entity Sener Boya to strengthen the foothold in international markets. Opened several warehouses in India as well as abroad. And incorporation of marketing subsidiary in China & Bangladesh. Stabilized production of the Thionyl Chloride (TC) plant with a capacity of 36,000 tonnes. Stabilized co-generation power plant of 5 MW. www.bodal.com#13K Bodal Chemicals Ltd." Strong in-house support for Product Development 12 Well-equipped Laboratories All the testing undertaken across BCL's well-equipped laboratories through strong R&D leads to product development, hence testifying innovative capability. BCL also has availability of Pilot plant. Aligned with the 'Aatmanirbhar Bharat Abhiyan' Through strong R&D, Bodal is adding economic value by strengthening in-house feed production. This reduces dependency on other countries for raw material import and through this, BCL is also aligned to the Government's 'Aatmanirbhar Bharat Abhiyan' initiative. Minimizing dependency on Imports In the overall raw materials mix, BCL procures hardly 1-2% from China. Thus, BCL is immune to any disruption in supply chain from China and will not have impact from it. www.bodal.com#14Integrated Products Portfolio Segment Basic Chemical Product Sulphuric Acid Chlorosulphonic Acid Sulphur Trioxide Oleum 23% & 65% Sodium Bisulphate Acetanilide Thionyl Chloride Beta Nephthol Para Nitro Aniline. Vinyl Sulphone & Derivatives + . Vinyl Sulphone Ester (Acetanilide Parabase) • Vinyl Sulphone Paracresidine Base • Ortho Anisidine Vinyl Sulphone Sulpho Ortho Anisidine Vinyl Sulphone Dye Intermediates Dyestuffs* . Sulpho Para Vinyl Sulphone • PCVS H Acid DASA F.C. Acid Gamma Acid K Acid Sulpho Tobias Acid 4.N.A.D.P.S.A 6-Nitro MPDSA Meta Ureido Aniline 1:2:4 DIAZO Reactive Dyes Acid Dyes Direct Dyes Liquid Dyes Note: Dyestuffs capacity refers to Powder form only (Except Liquid Dyes capacity of 10,000 MTPA). 13 Revenue Share (%) Production Capacity Utilization (FY20) ~10.58% 2,26,000 MT 87.9% ~38.09% 33,000 MT 81.5% ~43.91% 35,000 MT 54% K Bodal Chemicals Ltd." CLAUSE INTERSATION INNOVATION www.bodal.com#15Strong Clientele Basic Chemical LANXESS Lanxess India Pvt. Ltd. ADITYA BIRLA Grasim Industries Ltd (Chemical Division) Dye Intermediates OHYOUNG Ohyoung Inc. GRASIM Mcfills Enterprises Pvt. Ltd. Dyestuffs DyStar. Dystar HUNTSMAN ching tough Huntsman DEEPAK Deepak Nitrite Ltd. MOL Meghmani Organics Ltd. SRF SRF Ltd. GF Gujarat Fluorochemicals Ltd. JAY Hubei Color Root Technology Co. Ltd. Jay Chemical Industries Ltd. Chemistar Chemistar Intermediates Pvt. Ltd. Alps Chemicals Pvt. Ltd. Vertelus Specialty Vertellus Materials (India) Pvt. Ltd. EVONIK Evonic Specialty Silica POWER TO CREATE India Pvt. Ltd. AksharChem Aksharchem India Ltd. ALPS ORNET Istemedates Ornet Intermediates Pvt. Ltd. d Aceto US, L LLC. ACETO 14 ARCHROMA Archroma D-BASF The Chemical Company BASF K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION stabl STAHL united United Fabricare Supply. Inc. abcww.tharply F Repico REPICO RIFA RIFA TFL TFL KISCO KISCO Everlight Chemical EVERLIGHT www.bodal.com#16Global Footprints Out of the total production, about 41% is exported to over 45 countries across the world Canada Export Sale (Mn) 3,399.89 FY18 15 LISA Dominican Republic Honduras Venezuela Colombia Ecuador Benal Peru Chile Argentina ruguay 6,102.48 FY19 rmany -Belarus Biglum Franca Czech Republic Bulgaria Subekistan Portugal Spain Turkey Syria Cypr Iran MoreSco Pakistan Egypt Dubai indis Niger South Africa Sri Lanka Russis China Taiwan Thand Vietnam Malaysia Indonesia K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Sapan Australs 5,144.54 No. of Countries 45+ FY20 www.bodal.com#17Marketing Initiatives to push Demand 16 K Bodal Chemicals Ltd." COLAUSE INTERSATION INN WWTH Entity Acquired ~80% stake in Turkish Entity Sener Boya Bodal Bangla Limited - Bangladesh Bodal Chemicals Trading Shijiazhuang Co. Ltd. - China 10 Depots Value addition Acquisitions/opening of marketing & trading units will become an important arm for BCL in strengthening its position in distribution of final product i.e. Dyestuffs, in the domestic markets of respective countries. • 7 Depots across India and 3 out of India at China, Turkey & Bangladesh. Depots are the exclusive warehouse for the distribution in the local markets. • Bodal will continue to expand its global presence further in coming years. www.bodal.com#18Moving towards a Global Dyestuffs player with B2C Focus 17 K Bodal Chemicals Ltd." About Dyestuffs Segment In Dyestuffs segment, BCL manufactures 150+ product variants, which contributes nearly 40-45% in the total production capacity, out of which 60-70% is exported. Moving towards a Global B2C Dyestuffs Player • Higher margins in Dyestuffs segment due to limited traders' involvement ⚫ Direct relationship with customers. Strong brand building • Strengthening business integration Opportunity to enter new geographies. www.bodal.com#19K Bodal Chemicals Ltd." Diversification into Specialty Benzene Downstream Products and Expansion of Sulphuric Acid & its Derivatives 18 BCL announces diversification into Specialty Benzene Downstream Products and expansion of Sulphuric Acid & its Derivatives at Saykha GIDC, Bharuch, Gujarat. These products will further enhance 'Specialty Chemicals Segment' for BCL and shall open new growth areas as the company intend to further expand into Specialty products. www.bodal.com#20K Bodal Chemicals Ltd." Brief Detailing of the planned Diversification & Expansion Intended date for commencement of the project Expected date of completion Estimated cost of project Estimated Revenue Capacity of the Benzene Downstream Product Capacity of the Sulphuric Acid & Derivatives Independent R&D Center End-user Industry of the products January 2021 September 2022 Total cost of the project including one time infrastructure cost will be around 3,600 mn out of which cost of Benzene series products will be around 1,800 mn and cost of Sulphuric Acid & Derivatives will be around 1,250 mn. BCL has already purchased the land costing around 850 mn from internal accruals. Around 4,500 mn (at optimum utilization) 58,600 MTPA Products - MCB, PNCB, ONCB, MNCB, DNCB, PNA, 2,4 DNCB, MPDSA etc 3,40,000 MTPA Products Sulphuric Acid, Oleum - (23%-65%), Liquid SO3, Chloro Sulphonic Acid etc For product development as well as process improvement Pharmaceuticals, Agrochemicals, Dyes Industry, and Rubber Industry 19 www.bodal.com#21K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Benefits of Integration from Saykha Projects Cost Efficiency Steam generated during production of Sulphuric Acid will be utilized internally for power and also as energy for production of Benzene downstream products Integrated Product Chain 1. Benzene Downstream Products Better productivity and Better margins along with Environmental benefits - At the same time some of the hazardous effluents will be utilized internally to produce other products. These processes will result in significant reduction in power/energy costs as well as better productivity for the project 2. Sulphuric Acid & Derivatives 20 PNA Oleum 23% -65% PNCB 2,4 DNCB MPDSA ONCB Sulphur Sulphuric Acid Liquid SO3 Benzene MCB MNCB DNCB Chloro Sulphonic Acid www.bodal.com#22Industry Outlook K Bodal Chemicals Ltd." The size of the Indian chemical industry is ~USD 163 Billion, wherein Pharma, Agro, Dyes and Pigments, other speciality and Fine Chemicals contribute around 50% • Over the past ten years, the Indian chemical industry has clocked a CAGR of over 10% Going forward, in the near term, the Covid-19 landscape is bound to bring some volatility in the market. But, in longer term, the industry is expected to register a growth of 13-14% over the next 5 years owing to growth of strong intellectual property regime and infrastructure development like warehouses, waste management facilities and ports • The growth of the chemical industry is majorly supported by the uptrend in Dyestuff industry. Textile constitutes ~80% of the total Dyestuff consumption, signifying the pivotal role it plays in pushing the Dyestuff market value • Dyes and Pigments are used in varied number of applications, thus making it safe in terms of any slowdown in specific end-user industry In India, Dyestuffs production is growing at a satisfactory level wherein, Gujarat is a leader with over 75% market share • Going forward, the scope for Dyestuffs industry looks huge with its production volume projected to hit 572.2 thousand tons in 2024, increasing at a CAGR of 9.11% from 2020-2024 Source: Business Today, February 2020 | Economic times, October 2019 | Maeirvidorno, December 2019 | Trade Promotion council of India, August 2018 | Financial express, February 2020 | Economic times, 14th May 2020. 21 www.bodal.com#2322 Financial highlights of Q2FY21 & H1FY21 K Bodal Chemicals Ltd." COLAUSE INTERSATION INN WWTH www.bodal.com#24K Bodal Chemicals Ltd." Standalone Financial Statement Highlights for Q2 of FY2021 v/s Q2 of FY2020 Particulars (MN) Revenue from Operations Q2 FY 21 2,828.33 Q2 FY 20 2,575.21 23 Other Income 69.60 27.87 Total Revenue 2,897.93 2,603.08 Total Expenses 2,663.94 2,417.40 EBITDA 316.36 279.10 EBITDA Margin (%) 10.92% 10.72% Depreciation & Amortization Expenses 64.42 59.84 Finance Cost 17.95 33.58 PBT with Exceptional Item 233.99 185.68 Exceptional Items - PBT 233.99 185.68 Current Tax - (7.44) Deferred Tax 58.99 (48.77) Tax 58.99 (56.21) PAT 175.00 241.89 Other comprehensive profit / loss 3.99 (1.60) Net PAT 178.99 240.29 TOTAL Comprehensive PAT Margin % 6.18% 9.23% Diluted EPS 1.43 1.98 www.bodal.com#25Standalone Financial Performance Comparison - Q2 FY20 v/s Q2 FY21 24 The total Revenue from operations increased by 9.8% from 2,575 mn in Q2 FY20 to 2,828 mn in Q2FY21 mainly due to demand improvement. EBITDA increased by 13.4% from 279 mn in Q2FY20 to 316 mn in Q2FY21. EBITDA margins improved from 10.72% in Q2FY20 to 10.92% in Q2FY21. Net profit stood at 179 mn in Q2FY21, compared to 240 mn in Q2FY20. K Bodal Chemicals Ltd." COLAUSE INTERSATION INN WWTH www.bodal.com#26K Bodal Chemicals Ltd." Standalone Financial Statement highlights for H1 of FY2021 v/s H1 of FY2020 Particulars (MN) Revenue from Operations Other Income H1 FY 21 3,929.15 H1 FY 20 5,798.67 139.98 73.63 Total Revenue 4,069.13 5,872.30 Total Expenses 4,064.07 5,242.11 EBITDA 177.75 803.00 EBITDA Margin (%) 4.37% 13.67% Depreciation & Amortization Expenses 128.18 115.99 Finance Cost 44.51 56.82 PBT with Exceptional Item 5.06 630.19 Exceptional Items PBT 5.06 630.19 Current Tax 126.12 Deferred Tax 1.49 (26.45) Tax 1.49 99.67 PAT 3.57 530.52 Other comprehensive profit / loss 7.98 (2.83) Net PAT 11.55 527.69 PAT Margin % 0.28% 8.99% Diluted EPS 0.03 4.34 25 www.bodal.com#27Standalone Financial Performance Comparison - H1 FY20 v/s H1 FY21 26 The total Revenue from operations declined by 32% from 5,798.67 mn in H1 FY20 to 3,929.15 mn in H1 FY21 Cost of material reduced by 30% from 3,669.56 mn in H1 FY20 to 2,553.02 mn in H1 FY21 EBITDA declined by 78% from * 803.00 mn in H1 FY20 to 177.75 mn in H1 FY21 and EBITDA margins reduced from 13.67% in H1 FY20 to 4.37% in H1 FY21 Net profit stood at 11.55 mn in H1 FY21, compared to H1 FY20 Current Assets stood at in H1 FY21, compared to mn in H1 FY20 527.69 Mn in 4,836.30 mn 5,456.05 Current Liabilities stood at 3,290.06 mn in H1 FY21, compared to 4,030.39 mn in H1 FY20 Finance Cost reduced by 22% from 56.82 mn in H1 FY20 to 44.51 mn in H1 FY21 Net Cash flow from operations increased from -15.05 mn in H1 FY20 to 79.26 mn in H1 FY21 K Bodal Chemicals Ltd." www.bodal.com#28K Bodal Chemicals Ltd." Revenue Mix Segmental Revenue Performance for Q1FY21 v/s Q2FY21 27 Segment Q1FY21 (Mn) Q2FY21 Growth % (Mn) Dyestuffs 392 1,051 168% Dye intermediates 398 1,187 198% Basic Chemical 145 330 127% Other Chemicals 158 246 56% Total 1,093 2,814 157% 158 246 1,051 330 145 Revenue Q1 FY21 (Mn) 392 Revenue Q2 FY21 (Mn) 398 1,187 Dyestuffs Dye Intermediates Basic Chemical Other Chemicals Q1FY21 was severely impacted by lockdown in the country which resulted into closure of plants for around 40 days, subsequently resulted in decline in demand BCL started its partial operations from beginning of May 2020 but demand was low leading to decline in prices of finished goods www.bodal.com#29Segmental Performance Segment wise Revenue Contribution 5% 10% Segment FY18 FY19 FY20 31% FY18 Basic Chemical 10% 12% 11% 54% Dye Intermediates 54% 48% 39% Dyestuffs 31% 36% 44% Other 5% 4% 6% Segment Wise Production in MT K Bodal Chemicals Ltd." 4% 12% Basic Chemical Dye Intermediates 36% FY19 Dyestuffs 48% Other Segment FY18 FY19 FY20 6% 11% Basic Chemical* 1,79,544 1,88,534 1,98,732 Dye Intermediates 22,344 23,674 Dyestuffs 15,412 18,588 Total Production 2,17,300 2,30,796 23,898 18,890 2,41,519 44% FY20 39% Note: Basic Chemical production include Thionyl Chloride in FY20. 28 www.bodal.com#30Geography wise Revenue 29 K Bodal Chemicals Ltd." COLAUSE INTERSATION INN WWTH Continent wise export revenues Particular FY18 FY19 FY20 Domestic Sale Export Sale 69% 56% 59% 7.9% 31% 44% 41% 8.1% 31% FY18 69% 44% FY19 Domestic Sale Export Sale 56% 41% FY20 FY20 26.2% 57.5% 59% Asia North America Europe South America Africas' share is 0.3% *4,965 mn Total exports www.bodal.com#31Historical Financial Highlights* Revenue FY18 FY19 FY20 PAT FY18 FY19 FY20 866.17 (MN) EBITDA 11,756.29 FY18 14,368.54 FY19 13,852.17 FY20 *The charts represents consolidated figures. 30 (MN) EBITDA Margins 1,480.65 K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION (MN) 2,038.78 2,403.94 1,245.91 FY18 17.34 1,421.83 FY19 16.73 FY20 10.69 in % www.bodal.com#32Historical Financial Highlights* PAT Margins FY18 10.60 FY19 9.90 FY20 6.25 ROCE in % ROE K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION FY18 17.88 FY19 17.14 FY20 9.30 in % EPS FY18 FY19 26.38 FY18 25.68 FY19 FY20 12.33 FY20 7.16 *The charts represents consolidated figures. 31 10.62 11.54 in % (in) www.bodal.com#33Consolidated Profit & Loss 32 K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Particulars (MN) FY18 FY19 FY20 Revenue from Operations 11,661.38 14,235.02 13,748.19 Other Income 94.91 133.52 103.98 Total Revenue 11,756.29 14,368.54 13,852.17 Total Expenses 9,891.51 12,176.84 12,839.98 EBITDA 2,038.78 2,403.94 1,480.65 EBITDA Margin (%) 17.34% 16.73% 10.69% Depreciation 120.92 121.49 278.20 Finance Cost 53.08 90.75 190.26 PBT before Exceptional Item 1,864.78 2,191.70 1,012.19 Exceptional Items PBT 1,864.78 2,191.70 1,012.19 Tax 618.87 769.87 146.02 PAT before Minority Interest 1,245.91 1,421.83 866.17 PAT 1,245.91 1,421.83 866.17 PAT Margin % 10.60% 9.90% 6.25% Diluted EPS 10.62 11.54 7.16 www.bodal.com#34Consolidated Balance Sheet 33 Assets (MN) Fixed Assets Tangible Assets K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION FY18 FY19 FY20 Intangible Assets 4,358.97 6.53 Capital Work in Progress 187.00 6,056.63 6.34 255.10 6,384.11 8.84 68.58 Intangible Assets under development 525.68 123.26 84.43 Total Fixed Assets 5,078.18 6,441.33 6,545.96 Non-Current Investment & Other Financial Asset 105.69 112.52 105.97 Deferred Tax & Other tax Assets 33.45 83.77 153.50 Goodwill Other Non-Currents Assets Current Assets Current Investment Inventories Trade Receivable 158.33 168.79 155.22 22.58 154.75 30.08 5.74 1,133.05 2,076.33 2,190.51 2,836.42 2,598.51 3,770.55 Customer Bill Discounted 631.18 698.94 771.05 Cash & Cash Equivalent 11.76 77.86 144.65 Bank Balances other than cash & cash Equivalent 47.01 20.10 50.41 Loans 187.71 83.47 48.10 Other Financial Assets 9.72 32.88 1.40 Other Current Assets Total Current Assets Total 487.41 5,374.34 10,749.99 563.76 6,157.59 12,986.58 603.40 7,580.07 14,695.47 www.bodal.com#35Consolidated Balance Sheet 34 Liabilities (MN) K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION FY18 FY19 FY20 Shareholders Fund Share Capital 244.38 Reserve and Surplus 6,725.22 244.38 8,049.20 Money Received against Share Warrant 244.66 8,642.17 431.25 Total Shareholders Fund 6,969.60 8,293.58 9,318.08 Non-Controlling Interest 11.20 9.28 48.91 Non-Current Liabilities Long term Borrowing Other Financial Liabilities 10.20 138.39 0.19 5.55 Deferred Tax Liabilities 277.09 440.46 376.24 Long Term Provision 0.83 Total Non Current Liability 288.12 5.15 584.00 1.37 383.35 Current Liabilities Short Term Borrowing 1,167.07 858.32 1,793.44 Trade Payable 1,519.09 2,220.81 2,097.33 Customer Bill Discounted 631.18 698.94 771.05 Other Current Liabilites 21.17 153.85 135.28 Other Financial Liabilities 119.76 157.65 52.09 Short Term Provision 5.00 10.13 Current Tax Liabilities 17.80 0.02 95.94 Total Current Liabilities 3,481.07 4,099.72 4,945.13 Total 10,749.99 12,986.58 14,695.47 www.bodal.com#36K Bodal Chemicals Ltd." COLAUSE INTERSATION INN WWTH Forward Looking Strategy and Guidance 1 2 3 BCL is ahead of its peers in addressing the opportunity arising out of the China situation. It has the most integrated products portfolio. BCL has received approvals to start VS plant at SPS unit. It expect to start production at this plant from early FY22 after changes with respect to latest technologies. BCL expanded its Dyestuffs (powder) capacity by 18,000 MTPA in last two years. Share of Dyestuffs in total revenues will increase going ahead with higher capacity utilization which will ensure further integration of business and sustain higher margins. 35 Production levels at Liquid Dyes unit has improved and capacity utilization increased to > 40% from August 2020 owing to higher demand from paper & packaging industry. BCL believes the capacity utilization will further improve in near future and it should add to the revenue. 4 LO 5 BCL has forayed into newer geographies by setting up subsidiaries in China & Bangladesh and acquired 80% stake in Turkey based Company Sen-er Boya. The management believes this acquisition could spur volume growth in the near future Sen-er Boya's strong presence in Turkey and surrounding markets. These efforts should increase Dyestuffs revenues across the globe & increase share of B2C gradually. Trion plant is now operational and TCCA being the specialty product has strong demand in the USA markets. Management expects the performance of Trion will improve gradually in the coming years. www.bodal.com#37Forward Looking Strategy and Guidance 6 7 8 BCL proposes to grow at an accelerated pace, by adding new products in similar line of businesses, capacity expansion and concentration on high margin products. In line with the management's strategy of higher integration and becoming a global Dyestuffs player, BCL has been ahead with a focused strategic mind-set, ably supported by high-tech infrastructure, strong brand building, and modern laboratories. Gradual margins expansion due to: Optimum utilization of Thionyl Chloride (TC) Plant of 36,000 MTPA at Unit VII, a forward integration for sulphuric acid and backward integration for Vinyl sulphone • Optimum utilization of co-generation power plant will lead to substantial saving in power & fuel costs going ahead. Also, BCL is expecting a cost saving of appox. 100 mn per annum from FY22 onwards • Increasing share of B2C in Dyestuffs across the world 9 Promoter's continuous focus on integrated business model and further expansion in the specialty chemicals space. BCL would build on its successful track record of organic and inorganic growth even going further. 36 K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION www.bodal.com#38CSR Initiatives 37 K Bodal Chemicals Ltd." COLOUR INTERSATION INNOVATION BCL seeks to be a responsible corporate citizen. It works through Trusts and YUVA Unstoppable- a renowned NGO BCL also promotes sports, with contributions to ⚫ Sports Council of the Deaf Basketball Club • Promoting individual talent to represent the country in sporting events BCL's focus areas are • Eradicating hunger, poverty and malnutrition Promoting healthcare and sanitation including contribution to the Swach Bharat Kosh Promoting education and enhancement of rural infrastructure Ensuring environmental sustainability • Providing funds for construction for drinking water pipelines Conducting regular health check-up camps CRE Cert www.bodal.com#39CSR Initiatives K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION 38 www.bodal.com#40K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION Shareholding Pattern Promoter & Promoters Group 10 No. of Shareholders FPI's and FII's 20 No. of Shareholders DII's 1 No. of Shareholders Public 51,900 No. of Shareholders 7,13,15,662 No. of Shares held 52,06,050 No. of Shares held 16,91,134 No. of Shares held 4,41,17,319 No. of Shares held as on 30th September 2020 58.30% Shareholding as of total no. of shares 4.26% Shareholding as of total no. of shares 1.38% Shareholding as of total no. of shares 36.06% Shareholding as of total no. of shares (Source: https://www.bseindia.com/corporates/shpSecurities.aspx?scripcd=524370&qtrid=107.00) 39 www.bodal.com#41Awards and Certifications K Bodal Chemicals Ltd." COLOURS INTERSATION INNOVATION 40 BCL received the prestigious Chemexcil Gold Award for the year 2005-06. This award is presented for outstanding performance in Exports by Merchant Exporters Panel of Chemexcil, Government of India. First Award for direct export of Dye Intermediates and Second Award for direct export of Dyestuffs during 2009-10 from the Gujarat Dyestuffs Manufacturers Association. Award for Highest Self Manufacturing Turnover for Domestic and Export of Dyes and Dye Intermediates during FY2013-14 from the Gujarat Dyestuffs Manufacturers Association. Award for Highest Self Manufacturing Turnover for Domestic and Export of Dyes and Dye Intermediates during FY2016-17 from the Gujarat Dyestuffs Manufacturers Association. First in Large scale unit category for outstanding performance on Domestic Market in 2016-17 and one as a Second in Large scale unit category for Excellent performance in Export of Dyestuffs from the Dyestuffs Manufacturers' Association of India for 2017-18. BCL listed amongst the Top 500 Indian Companies by the Dun & Bradstreet in 2018 for the second consecutive time. CHEMEXCIL - "Trishul Award"- 2011-12 and 2013-14 CHEMEXCIL - "Gold Award" - 2015-16 • CHEMEXCIL - "Award of Excellency" - 2016-17 Recently, recognized by ET Enterprise Icons 2018 ⚫ Gujarat Best brand award 2018 • 25 Best Companies to Work For (Industry) 2019 by CEO Insights BCL has ISO 9001:2015 and ISO 14001:2015 certifications for their production of Dye intermediates & Dyestuffs. Bluesign Certification – Recognized as Bluesign System partner - Bluesign approved Product Supplier - GOTS (Global Organic Textile Standard) Certification ZDHC Certification ISO 45001 2018 Certification . BEHIVE Certification ECOTAX Certification www.bodal.com#42Thank you For any queries, please contact: Meet Chande Investor Relations, Bodal Chemicals Ltd. Email: [email protected] Phone: +91 79 6816 0100 +91 99099 41324 K Bodal Chemicals Ltd."