#1SUMITOMO CHEMICAL Sumitomo Chemical India Limited Investor Presentation February 2022#2Safe 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 of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission 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#3Financial Performance & Key Highlights#4- Performance Highlights – Quarter & YTD Revenue (Rs Crs) +26% Gross Profit (Rs. Crs) & Gross Profit Margin (%) +26% 266 EBITDA (Rs. Crs) & EBITDA Margin (%) +62% 127 PAT (Rs Crs) +64% 561 707 211 89 78 54 37.6% 37.6% 17.9% 13.9% 12.6% 9.7% Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Revenue (Rs Crs) 2,111 9MFY21 +14% Gross Profit (Rs. Crs) & Gross Profit Margin (%) 2,400 796 9MFY22 EBITDA (Rs. Crs) & EBITDA Margin (%) +18% 491 291 +13% 903 416 PAT (Rs Crs) +20% 349 37.7% 37.6% 19.7% 20.5% 13.8% 14.5% 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Given the seasonality in the business, it is best monitored on an annual basis 4#5Consolidated Profit & Loss Account Statement - Quarter & YTD Particulars (Rs. Crs) Revenue from Operations Q3 FY22 Q3 FY21 707.2 560.9 YOY 26% Q2 FY22 910.4 QoQ -22% 9M FY22 9M FY21 YOY 2,399.5 2,110.6 14% COGS Gross Profit 441.5 349.9 555.5 1,496.6 1,314.4 265.7 211.1 26% 354.8 -25% 902.9 796.2 13% Gross Profit % 37.6% 37.6% -6 bps 39.0% -141 bps 37.6% 37.7% -9 bps Employee Expenses 51.8 49.5 45.4 151.5 151.9 Other Operating Expenses 87.3 83.5 94.7 260.5 228.7 Operating EBITDA 126.5 78.0 62% 214.7 -41% 491.0 415.5 18% EBITDA Margin 17.9% 13.9% 398 bps 23.6% -569 bps 20.5% 19.7% 77 bps Other Income Depreciation EBIT EBIT Margin Interest 6.2 5.4 7.9 19.4 13.9 11.4 11.1 10.9 33.4 33.1 121.3 72.4 67% 211.6 -43% 477.0 396.3 20% 17.1% 12.9% 424 bps 23.2% -609 bps 19.9% 18.8% 110 bps 1.6 1.5 2.0 5.4 4.5 Profit Before Tax & Exceptional 119.7 70.9 69% 209.6 -43% 471.6 391.9 20% Exceptional Item Gain / (Loss)* 0.0 0.0 0.0 0.0 0.0 Profit Before Tax 119.7 70.9 69% 209.6 -43% 471.6 391.9 20% PBT Margin Tax Net Profit Net Profit Margin 16.9% 12.6% 428 bps 23.0% -610 bps 19.7% 18.6% 109 bps 30.7 16.8 55.4 122.7 100.6 88.9 54.1 64% 154.2 -42% 348.9 291.3 20% 12.6% 9.7% 292 bps 16.9% -436 bps 14.5% 13.8% 74 bps Other Comprehensive Income Total Comprehensive income for the period 0.5 0.4 1.4 0.1 -1.4 89.4 54.6 64% 155.6 349.0 289.9 20% Given the seasonality in the business, it is best monitored on an annual basis Merger expenses 5 UT#6Revenue Breakup – YTD Product Breakup 6% 11% 7% 10% 6% 8% 43% 45% 9MFY21 9MFY22 12% 10% 1% 2% 4% 3% 2% 3% 9MFY21 Geographic Breakup 8% 0% 0% 4% 2% 4% 1% 9MFY22 81% 85% 20% 22% Insecticides Herbicides PGR Fungicides Metal Phosphides AND & EHD* Domestic Africa Japan Asia (Ex. India) Europe South America North America Australia Segment Breakup Bulk & Branded Domestic Exports 15% 20% 66% 69% 71% 76% 85% 80% 34% 31% 29% 24% 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Generic Speciality * Animal Nutrition Division (AND) and Environmental Health Division (EHD) Bulk Branded 6#7Consolidated Working Capital Movement Change Particulars (Rs. Crs) Dec-21* Sep-21* (Dec-21 to Sep-21) Change Mar-21 (Dec-21 to Mar-21) Change Dec-20* (Dec-21 to Dec-20) Inventory (A) Inventory Days (Inventories/ COGS* No. of days in period) (i) Trade Receivables (B) 696.6 650.4 42.6 754.4 -57.8 544.0 152.6 145 111 166 143 917.1 983.6 -66.5 848.2 68.9 916.5 0.6 Trade Receivables Days (Trade Receivables/Revenue* No. of days in period) (ii) 119 105 117 150 Trade Payables (C) 509.1 561.3 -52.2 598.3 -89.2 596.1 -87.0 Trade Payables Days (Trade Payables/ COGS* No. of days in period) (iii) 106 96 132 157 Other Financial Liabilities (D) 424.9 451.0 -26.1 349.8 75.1 379.8 45.1 Other Financial Liabilities Days (Other Current Liabilities/Revenue * No. of days in period) (iv) 55 48 48 62 Net Working Capital (A+B-C-D) 679.7 621.7 58.0 654.5 25.2 484.6 195.1 Net Working Capital Days (i + ii — iii – iv) 103 72 103 74 Key Highlights Maintained higher inventory on back of anticipated strong demand as well as to protect against increasing input cost Focused efforts towards improving collections - Collection during 9M FY22 of ~Rs. 2,512 crores as compared to Rs. 2,449 crores during 9M FY21, increased by 3% yoy Cash, Cash Equivalents and Liquid investments of ~Rs. 664 crores as on 31st December 2021 Given the seasonality in the business, it is best monitored on an annual basis * No. of Days in period: Dec-21-92 days, Sep-21 - 92 days, Mar-21 - 365 days, Dec-20 - 92 days 7#8SUMITOMO CHEMICAL Sumitomo Chemical Company Limited, Japan - An Introduction O#9Overview of our Parent Company About Sumitomo ✓ Sumitomo started business in Japan in early 16th Century (400 years+) ✓ Currently several Sumitomo founded companies operate as independent listed companies with widespread shareholding and run by its professional boards ✓ Even today, all Sumitomo companies continue to follow basic business philosophy and ethical practices of Sumitomo About Sumitomo Chemical Company Limited, Japan (SCC) ✓ SCC was founded in 1913 and undertakes several chemical related businesses as an independent listed company ✓ SCC is a leading Japanese research driven diversified chemical company listed on the Tokyo Stock Exchange with consolidated sales revenue of more than US$ 20 bn ✓ Offers diverse range of products globally in 5 business sectors: petrochemicals, energy and functional materials, IT-related chemicals and materials, pharmaceuticals and health and crop sciences sector; ✓ SCC holds 12,600+ Patents of which ~34% are in Health & Crop Science SCC's Health and Crop Science Sector - Undivided Focus for Leadership in India Health & Crop Sciences Sector - Revenue of more than US$ 4.0 bn Leading R&D spenders globally among agro-solution players ✓ Strong pipeline of Agro-Solutions and Environmental Health products with very high business potential of ~US$1.4 -$1.8 bn ✓ SCC recently acquired Nufram's distribution in Latin America thereby gaining leadership position in Latin America Generics Market Segment ✓ SCIL is flagship entity of SCC group focusing on high potential Indian market; only TG grade manufacturing site outside Japan and part of SCC's growth strategy ✓ SCC is proud of SCIL's achievement so far and confident of its growth potential ✓ SCC will continue to support SCIL to achieve market leadership position in Indian market 9#10SCC Growth Strategy in Health & Crop Sciences Sector - R&D - Core Competence: R&D R&D performance data Crop Protection Sales & Number of Issued Patent (2012-2019) (Million US$) Sumitomo Chemical is conducting 14,000 12,600 Crop Protection Products Sales Numbers of Issued Patents R&D based on the knowledge 12,000 10,118 Intellectual Capital regarding chemical and 10,000 biorational crop protection 8,000 7,128 6,256 products, which is obtained after 6,000 4,528 3,792 3,611 its many years of R&D activities. 4,000 1,978 2,627 2,170 2,575 2,248 2,517 2,000 278 123 37 Human Capital Personnel located around the world are conducting R&D using a global network. Bayer Syngenta BASF Corteva FMC ADAMA Sumitomo Nufarm Chemical R&D Expenses to Sales Ratio (Billion JPY) 40 R&D Expenses Ratio 10.0% 8.0% 30 20 10 L = || | || | | 6.0% 4.0% 2.0% 0.0% '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3 '19/3 '20/3 The Chemistry Research Center: A global discovery and innovation base for the Health & Crop Sciences Sector Refer SCC, Japan IR presentation and Investor handbook 2020 at SCC website 10#11SCC - Growth Strategy in Health & Crop Sciences Sector - Distribution 北米 6挑点 6 sites in North America Valent U.S.A. 欧州 8挻点 8 sites in Europe SCAE SC Italia Valent Canada Kenogard Valent Mexico 南米6抛点 6 sites in South America SC Brazil SC Chile Refer SCC, Japan IR presentation and Investor handbook 2020 at SCC website アジア 9拠点 9 sites in Asia SC India SC Vietnam SC Asia ニューファーム社から買収した拠点 Sites acquired from Nufarm 既存の当社の拠点 Existing sites of the Company SCC HQ SC Australia 11#12Sumitomo Chemical India Ltd. - Company Overview - SCIL Vision & Mission Journey to 11x Growth in India Formidable Player in the Indian Agrochemicals Space Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Strong Brand and Well- Entrenched Distribution Network Strategically Located Manufacturing Facilities. Strong Focus on R&D, Process Innovation and Safety, Health and Environment (SHE) Autonomous Board with Vast Industry Experience Growth Strategies#13SCIL Vision & Mission - • • • Vision & Values Vision: To be a trusted market leader in Indian crop- protection sector To develop a vibrant corporate culture Endeavor to achieve success and sustainability through innovation & excellence Core Values: • Innovation • Excellence • Integrity • Respect & value all stakeholders . Customer focus • People focus • Sustainability • • Mission Marketing and Sales: Further penetration into Indian market & take leadership; expand exports Strengthen Sales Force, Distribution and Product Portfolio Manufacturing: Supplying the most competitive products with safe and stable operation and meet demand • Strengthen Procurement Power Expand Manufacturing Functions Management & Support: Establishing the most efficient organization to support business growth and alignment with SCC Develop administrative efficiency while ensuring internal controls • Full & Strict Compliances Value Creation for all stakeholders 13#14Journey to 11x Growth in India Exploration Phase: 2000-2010 2000 Manufacturing JV with New Chemi 2002 Started EHD (Public Health) business 2005 SCIL incorporated in India as EHD (HHI) distribution company 2001 Started ASD business 2003 Robust growth driven by Organic & In-organic expansion Acquisition of New Chemi and integration with SCIL Expanded the business to include animal nutrition chemicals Acquired product - 'Sulfosulfuron' Leader rights from Monsanto Acquired EHD (HHI) unit from Bayer Vapi 2006 Aggressive Growth Phase: 2011 – 2021 Setting-up new organization, control system, PCO function and innovative sales team Acquisition of Excel Crop Care Merger completion 2010 Started Animal Nutrition 2 Sales INR 2 Bn SCIL 2.0 1st full year of operations 26.4 24.2 11% 22.2# 19.4# 17.4 18.2 16.3 16.9 13.2 12.7 11.9 Rs. Bn 11.4 9.7 10.3 9.0 9.5 9.8 7.8 6.9 ECC 7.2 6.5 7.1 7.9 8.5 9.0 10.0 SCIL 4.5 4.9 2.3 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 #Inter-company transactions are eliminated. Other operating income is included HHI Household Insecticides 14#15200+ Grown 11X+* over FY11-21 Formidable Player in the Indian Agrochemicals Space 5 Manufacturing Facilities 10+ Technical Actives 14,000+ Distributors Brands 25+ / 200+ Patents/ Registrations 1,500+ Employees Key Products Product Name Glyphosate Profenophos Dantotsu Tebuconazole Progibb Aluminum Phosphide Chlorpyriphos DL-Methionine Product Category Herbicide Insecticide Insecticides Fungicides Plant Growth Regulator Fumigant Insecticide Animal Nutrition 13X 26.4 Indicative Use Tea Gardens, non-cropped Cotton, Soya bean Vegetables Wheat, Soya bean, Chilli Citrus Fruits Warehousing of Food Grains Paddy, Beans, Gram Poultry 2.3 FY11 *On an organic basis, grown 5X+ FY21 Rs. Bn 15#16Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Segments + Products Geographies + Customers Geographic Diversification with Exports to over 60 countries Diversified Portfolio Across Segments ■Generics ■Speciality Insecticides 7% 11% Domestic 83% Herbicides 32% PGR 7% 45% Metal Phosphides FY21 Fungicides 11% AND & EHD 19% 68% + Crops Served 1% Australia 6% North America 21% Exports 14% FY21 17% 28% 10% South America Europe 20% Asia (Ex. India) ■Japan Africa ✓ Greater focus on high growth, stable and high profitable segments such as Herbicides, PGR, Bio-rational products ✓ Increasing contribution from PGR segment and offerings for both Kharif and Rabi crops to reduce seasonality in the business ✓ One of the highest proportion of environmentally-friendly products in the Industry Top 10 products contributes less than 50% of Total Revenue No product / molecule contributes more than 15% of Total Revenue ✓ Diversified across key crops growth segments - Concentrated efforts now on fruits & vegetables, paddy and other high 16#17Strong Brand and Well-Entrenched Distribution Network Strong brand with market leading position across various product categories Dual brand portfolio can offer products at all price points serving multiple customer sub-segments 23 States In-depth knowledge of own research products, proven go-to-market strategy and deep farmer connect facilitates launch of Speciality products 14,000+ Distributors 65+ Depots ~40,000 Dealers ✓ On-field demonstration of products, training of farmers in using the products, building awareness among stakeholders in relation to the products Pan-India distribution network ensures strong presence with both retailers and farmers and on-time feedback mechanism 1 million+ Farmer Connect through 1,400+ Field / Market Development Officers Scale and diversity of product offerings lead to superior bargaining power with distributors and provides one-stop solution for farmers 18% ~600 Sales Team Bulk & Branded Contribution (FY21) Exports 65% 35% Domestic O 82% Bulk Branded 17#18Expanding Brand Visibility and Connect SHADHEEN 019-8-21 08:47) ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions More than 1,400+ Relationship managers connecting to 1 million+ farmers throughout crop cycle Over 100 brands covering maximum of crops and pest segments ✓ 14,000+ distributors, 40,000+ dealers and 68 Depots help in expanding brand visibility and connect More than 500+ Qualified and skilled managers in Sales, Marketing and customer support Company with 20+ mega brands with high brand recall ✓ Healthy geographical Brand coverage throughout India including North East and J&K ✓ Optimum use of advertising media with increased Digital Platforms presence कृषि दिन कार्यक्रम ht Mrac 18#19Digital Marketing Initiatives. Develop "Digital Marketing" as a parallel support to Traditional marketing system leading to improved sales. ✓ Our Digital Assets: 23 websites, engaged with 5.6 million consumers in 2020-21. DANITOL INDIA ગુજરાતી मराठी తెలుగు ಕನ್ನಡ हिंदी http://www.danitolindia.com/ Nature Deep India f मराठी বাংলা ગુજરાતી தமிழ் ಕನ್ನಡ हिंदी తెలుగు English http://danzapower.com/ Vidyut DANZA POWER DANZA ગુજરાતી forat BIRGIT తెలుగు தமிழ் ಕನ್ನಡ http://www.naturedeep.in/ Vidyut Ar entranced Crop Energy Chemelizer http://www.vidyutindia.com/ Successful campaign to introduce the QR codes of http://www.sumitomoproducts.com/ to the retailers and farmers. Video based campaigns to increase awareness among farmers and disseminate information on necessary precautions to stop the spread of COVID 19. YouTube Advantage More than 31,000 subscribers Youllabe Search TABOLI इंतज़ार महुआटाबोली अब आ गया है। इंतज़ार ख़त्म हुआ टाबोली .......अब आ गया है Taboli Product Launch Video with 193K views in 3 months Sumitomo Chemical India Limited seeks your gracien presence for the Grand Digital LAUNCH of TABOLI Date: Sunday, 19th July 2020 Tia: 11AM Esence the fascinating Paanch of Fabali 15 Digital Launch programs of Taboli across India to introduce the product to distributors & retailers LIVE LIVE किसानों की बात सुमिटोमो के साथ मिलिए हमारे कृषि डॉ. अभिषेक यादव से सोयाबीन की उन्नत कृषि तकनीक are frega wat रविवार 7 जून 2020 सुबह 11 बजे Farming Tube सब 11 बजे Sumitomo in Convenation with the Agriculture Enthusiasts Meet Our Expers Mr. Bhagwan Verma Topic Pest Management in Soybean Wednesday, 24th June, 7pm Farming Tube/24th June, 7pm Conducted 168 YouTube Live sessions in 2020-21 सुमिलेमी फेमिकन प्रोडक्ट्स के बारे में अधिक altatorit às fère हमारी मोबाइल ऐप डाउनलोड करें। Get it on Google play More than 5,000 downloads Rating - 4.5 19#20Digital transformation & SAP Implementation $ 01 Earlier SCIL was using different SAP platforms in different parts of business. From April 2021, SCIL has completed implementation of an integrated SAP SH4 HANA system across the entity including several additional modules 02 Common SAP system across the entity and greater use of technology will enable greater integration, efficiencies & synergies across the organization and expected to provide long term benefits 03 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' and various digital interfaces to reach out to distribution channel & farmers and provide them timely information 20 20#21Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs L Gujarat La Maharashtra Gajod Silvassa Bhavnagar Vapi Tarapur Mumbai - Head Office L 5 Manufacturing Plants 4 Branches & 68 Depots Pan India Plant Location Area (acres) Segment Served Bhavnagar ~58 Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: and Formulations Gajod ~120 Production and manufacturing of Metal Phosphides, Sulphur WDG and other WDG formulations Tarapur ~5 Production and manufacturing of Active Ingredients Vapi ~6 Formulation & Packaging Silvassa ~3 Formulation of Glyphosate and Other Speciality Products • Chlorpyriphos, Profenophos, Glyphosate, Tebuconazole Tech, Quinalphos, Imidacloprid, Thiacloprid, Acetamiprid, Byspyribac Sodium, Aluminium Phosphide, Zinc Phosphide, Sulphur WDG, Fenpropathrin Formulations for above TG products and several other speciality and generic products Overall Optimal capacity utilization generally (Utilization were impacted in Q1 due to Covid-19 related lockdown and restrictions) Continues investments to enhance capacity as per the forecasted demand (similar to the trends followed in past) • Recently acquired additional land at Dahej and Bhavnagar for future capex Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 21#22Regular Capex Rs. 70-75 crore p.a. Maintenance capex Capacity enhancements for existing products in line with projected demand Additional Capex Rs. 100-110 crore over 1-2 years for 5 products To manufacture additional proprietary technical grade active ingredients products for our parent company SCC Japan and our global affiliates 5 products have been approved in-principle for supply to SCC and several others are in pipeline Research & Development Indian R&D team is working on manufacturin several off-patent products for Domestic as well as Exports to global affiliates including high growth regions such as Latin America, Africa and Asia Pacific which will entail additional capex and is under evaluation Capex Plans Infrastructure enhancements for supporting future growth Efficiency improvement projects and safety enhancement Sustainability initiatives, full compliance with environmental norms & renewable energy projects Trials and registrations for future pipeline products Projects are being set-up at our existing sites. Target commercialization over next 2 years Revenue potential of these 5 products on the above capex is Rs. 200 crore to Rs. 250 crore p.a. Estimated margins are in line with current margins earned by SCIL for similar projects These products have growing global demand. Potential to add further capacities and additional products in medium to long term Future Expansion Plans Signed and registered agreements to buy 2 additional land parcels and transfer process is expected to be completed soon • ~20 acre privately owned land parcel adjoining our existing Bhavnagar site ~50 acre privately owned land parcel at a prime location at Dahej within PCPIR Zone Capex plan progressing as per schedule; commercial production is expected to start during FY 22-23 22 22#23Strong Focus on R&D and Process Innovation End-to-End Product Development Capabilities 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development R&D Team comprises of 75+ qualified and dedicated engineers & scientists of which 10+ are PhDs with more than 15 years of Experience 25+ patents granted across various geographies; 9 applications filed Product Pipeline ■ Multiple Global Speciality Proprietary products to be launched in India (target to launch minimum 2-3 every year) 9 new combination products / pre-mixtures currently under development for domestic and exports (5 insecticides, 2 fungicides, 2 PGR) ■ 3 Off-patent products under development for domestic and exports ◉ 5 Technical products approved for manufacturing and exports ■ Several additional products are under discussion R&D facilities to gain capability for creating new processes and new combinations using SCC Japan's chemistries which would help improve production processes and efficiency IPR DEPARTMENT PROCESS DEVELOPMENT SOIL HEALTH RESEARCH PROCESS SAFETY ANALYTICAL DEVELOPMENT EVELOPMENT FORMULATIO DEVE 23#24Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sites at Bhavnagar, Gajod, Tarapur and Silvassa; ISO:9001:2015 at Vapi A8000 Certification for Social Accountability in Bhavnagar and Gajod Efforts focused on reducing effluent load and effluent treatment cost, for staying innovative and competitive in the market The quality of the products is maintained and upgraded to the applicable national and international standards through rigorous pursuit of Six Sigma initiative Focused on energy conservation and energy cost reduction: 50% of total power requirement through wind and solar power generation plants Expanding solar power plant capacity in line with towards green energy would also help in reducing dependence on outsourced power as well as in energy cost reduction 3R Principle: Recovery - Recycle - Reuse Safety audit, training programmes and other safety management processes and programmes are carried out/conducted at regular intervals All the manufacturing and warehousing sites of the Company are covered by safety audit Responsible Care* DECOMMITMENT ABILITY Abiding by SCC Japan's EHS Policies Dr. Vikram Sarabhai award for developing green technology from department of Science and Technology, Government of Gujarat Certificates of appreciation received ten times from jointly by Gujarat Safety Council and Dish Government of Gujarat for achieving 10 lakh accident free man-hours Certificates of merits received from jointly by Gujarat Safety Council and Dish Government of Gujarat for achieving 20 lakh accident free man-hours 13: Certificates of honour received two times jointly by Gujarat Safety Council and Dish Government of Gujarat for achieving 30 lakh accident free man- hours Focus on purity, quality and timely delivery of products to the customer 24 24#25Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Chairman and Independent Director " ■ Professorial Fellow at Lee Kuan Yew School of Public Policy at the National University of Singapore Advisor to Govts in Asia on tax policy & pension reforms; and to multi-lateral institutions including IMF, Asian Development Bank, PFRDA of India, Govt of Gujarat, & World Bank Member of the panel to review Crawford School of Public Policy at Australian National University Preeti Gautam Mehta Independent Non-executive Director ◉ 30 years of experience in corporate laws, foreign investment and collaborations, mergers and acquisitions and private equity investments, banking, franchising and hospitality Bhupendranath Bhargava Independent Non-executive Director ◉ Experience of over 50 years in areas including banking, project financing and credit rating Held directorship in several leading corporates and was on the advisory board of an independent regulatory body set up by the Government of India to work on reforms in telecommunications sector Ninad Dwarkanath Gupte Non-executive Director ■ Experience of 43 years in management of companies operating in fine chemicals, performance chemicals, industrial chemicals & agrochemicals Held senior positions at Excel Industries, BASF India, Herdillia Chemicals and worked as MD of Cheminova India and Agrocel Industries and as Joint MD of Excel Crop Care 25#26Autonomous Board with Vast Industry Experience ■ Hiroyoshi Mukai Non-executive Director Associated with Sumitomo Chemical Group for over 30 years Holds a bachelor's degree from the University of Osaka, Japan Tadashi Katayama Non-executive Director MBA from Vanderbilt University, U.S.A. and a Master's degree from Kyoto University in Japan Associated with Sumitomo Chemical, Japan since 1992 in the Health and Crop Science business unit in various positions Masanori Uzawa Non-executive Director • ■ MBA from University of Virginia, USA and a Bachelor's degree from the University of Tokyo in Japan Associated with Sumitomo Chemical, Japan and has experience of over 19 years in the areas of strategy, planning and business development for crop protection & other chemical businesses. Chetan Shantilal Shah Managing Director Commerce graduate from the University of Mumbai and holds a master's degree in Business Administration from North Rope University in the USA Over 43 years of industry experience in various leadership and senior management roles Sushil Champaklal Marfatia Executive Director Chartered Accountant with over 42 years of industry experience ■ Worked with New Chemi Industries Limited for 33 years which was later merged with the Company Board is supported by a strong and experienced management team associated with Company since long 26#27Growth Strategies • • Continued Investment in R&D and Pipeline Capacity Expansion Aim to invest in seamless integration of R&D between SCIL and SCC units which would help improve our production processes, enhancing yields and efficiency Introduce new products as per market demand * Further Brand Development Investments for marketing of new and existing products and brands of On-field demonstrations, training farmers for building ground-level demand generation supported by digital marketing Focus on high margin brands 11 products registration in process to further improve capacity utilization including product level expansion • • • Driving operational efficiencies maintaining highest safety standards and Responsible Care compliances Invest 15% of consolidated EBITDA every year for upgradation of manufacturing facilities and capacity expansion to cater to strong domestic/global demand Expand Export Business Achieving Market Leadership in India Balanced portfolio of generic and speciality products Consolidate position as best agro-chemical marketer in India осо Product Pipeline 9 new combination products/pre-mixtures currently under development for domestic and exports (5 insecticides, 2 fungicides, 2 PGR) Enhance exports in regions like Africa and Europe Leverage SCC's Global supply chain and marketing network to drive exports Strive for manufacturing excellence Set-up a strong management & team 3 Off-patent products under development for domestic and exports 5 Technical products for manufacturing and exports Multiple Global Speciality Proprietary products to be launched in India Lay the foundation for next generation leadership Leverage expertise in successful product launches and capacity expansions to fuel future growth 27#28Financial Performance & Key Takeaways Historical Performance Highlights Key Takeaways#29Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) +11% 2,645 2,425 2,228 1,913 487 +31% 333 291 217 345 +34% 205 166 145 18.4% 11.3% 13.0% 13.7% FY18* FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Networth (Rs Crs) +17% 1,541 1,222 1,048 954 FY18 FY19 FY20 FY21 ROCE (%)^ 29.1% 25.2% 26.6% Net Working Capital Days 45.5% 131 119 115 103 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 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 2. Appointed date for merger of ECC and SCIL is 1st Apr'18 *Revenue is Net of Excise Duty. ^ ROCE - {EBIT/ (Net Worth + Borrowings - Cash and Cash Equivalent)} ✓ Good monsoon and availability of water boosted farmer sentiment and resulted in good growth in rabi season 2020 as well as upcoming Kharif season in 2021 in the Indian domestic market ✓ Combined entity ~2x in size ✓ Net debt free balance sheet ✓ Strong margin profile maintained ✓ PAT number is after adjusting one time merger costs Additional upside to be realized on account of synergies 29#30Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) Net Revenue from Operations COGS Gross Profit Gross Profit % Employee Expenses Other Operating Expenses Operating EBITDA EBITDA Margin Other Income Depreciation EBIT EBIT Margin Interest FY21 FY20 FY19 FY18 2,644.9 2,424.8 2,228.4 1,912.9* 1,655.4 1,607.6 1,458.9 1,238.7 989.5 817.2 769.6 674.2 37.4% 33.7% 34.5% 35.2% 194.3 179.3 158.4 147.5 308.4 304.7 320.5 309.6 486.9 333.2 290.7 217.1 18.4% 13.7% 13.0% 11.3% 18.6 10.7 7.6 30.5 46.6 41.0 27.8 23.7 458.9 302.9 270.5 223.8 17.3% 12.5% 12.1% 11.7% 5.6 5.5 3.7 2.8 Profit Before Tax & Exceptional 453.3 297.4 266.8 221.0 Exceptional Item Gain / (Loss)* ** -30.9 -7.0 Profit Before Tax 453.3 266.5 259.8 221.0 PBT Margin Tax Net Profit Net Profit Margin Other Comprehensive Income Total Comprehensive income for the period EPS 17.1% 11.0% 11.7% 11.6% 107.9 61.8 94.0 75.8 345.4 204.7 165.8 145.1 13.1% 8.4% 7.4% 7.6% 1.6 -5.1 0.1 5.1 199.6 165.9 150.2 347.0 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 * Revenue net of Excise Duty; ** Merger expenses 30#31Consolidated Balance Sheet Assets (Rs. Crs) Non-Current Assets (A) 365.7 Property, Plant and Equipment 277.6 Mar-21 Mar-20 Mar-19 Mar-18 360.6 318.3 312.7 282.9 277.2 264.8 Equity & Liabilities (Rs. Crs) EQUITY (A) Mar-21 Equity Share Capital Mar-20 Mar-19 Mar-18 1,541.3 1,221.8 1,048.4 954.0 499.1 499.1 274.6 274.6 Capital work-in-progress 4.3 6.5 3.2 4.5 Other Equity 1,042.2 722.6 773.8 679.4 Right to use an Asset 31.1 34.9 Other Intangible Assets 0.6 1.7 2.1 1.9 Non-Current liabilities (B) 49.6 44.5 30.2 32.5 Intangible Assets under Development 10.0 3.8 4.9 4.3 Non-current Financial liabilities Non-Current Financial Assets Lease Liabilities 15.3 19.4 (i) Investments 0.1 0.1 0.1 0.1 (ii) Loans 6.0 5.3 7.6 7.3 Deferred tax Asset (net) ༤༤ Provisions 29.2 25.1 15.6 12.7 Deferred tax liabilities (net) 5.0 14.6 18.1 1.1 Non-Current tax Assets (net) 18.5 20.2 18.8 24.8 Non-current Tax Liabilities 1.7 Other non-current Assets 17.6 Current Assets (B) Inventories 4.2 2,304.3 1,745.6 1,541.7 1,345.7 754.4 588.0 680.6 609.3 4.4 5.1 Current liabilities (C) 1,079.2 839.9 781.3 671.9 Current Financial liabilities (i) Borrowings 19.7 10.1 Current Financial Assets (i) Investments 290.2 86.0 (ii) Trade Payables 598.3 490.9 480.8 527.3 (ii) Trade receivables 848.2 849.8 671.0 551.8 (iii) Lease Liabilities 17.3 16.2 (iii) Cash and cash equivalents 213.3 92.6 50.5 73.5 (iii) Other financial liabilities 349.8 235.4 179.2 55.6 (iv) Bank balances other than (iii) above 28.8 0.9 0.9 0.8 Other current liabilities 108.2 80.2 87.2 70.1 (v) Loans 7.7 7.9 5.1 3.7 Provisions 5.6 9.7 2.5 2.3 (vi) Other financial assets 11.4 21.8 15.8 10.4 Other Current Assets 150.3 98.6 117.8 96.3 Current tax liabilities 0.0 7.4 12.0 6.6 Total Assets (A+B) 2,670.1 2,106.2 1,860.0 1,658.4 Total Equity & Liabilities (A+B+C) 2,670.1 2,106.2 1,860.0 1,658.4 NIL borrowings Cash, Cash Equivalents & Liquid Investments of ~Rs. 532 Crs as on 31st March 2021 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 31#32Consolidated Working Capital Movement Particulars (Rs. Crs) Inventory (A) Mar-21 Mar-20 Mar-19 Change (Mar-21 over Mar-19) 754.4 588.0 680.6 73.8 Inventory Days (Inventories/ COGS*365) (i) 166 134 170 Trade Receivables (B) 848.2 849.8 671.0 177.2 Trade Receivables Days (Trade Receivables / Revenue*365) (ii) 117 128 110 Trade Payables (C) 598.3 490.9 480.8 117.5 Trade Payables Days (Trade Payables/COGS*365) (iii) 132 111 120 Other Financial Liabilities (D) 349.8 235.4 179.2 170.6 Other Financial Liabilities Days (Other Current Liabilities/Revenue *365) (iv) 48 35 29 Net Working Capital (A+B-C-D) 654.5 711.4 691.6 -37.1 Net Working Capital Days (i + ii – iii – iv) 103 115 131 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#33Consolidated Cash Flow Statement Particulars (Rs. Crs) Net Profit Before Tax Adjustments for: Non-Cash Items / Other Investment or Financial Items Operating profit before working capital changes Changes in working capital Cash generated from Operations Direct taxes paid (net of refund) Net Cash from Operating Activities Net Cash from Investing Activities Net Cash from Financing Activities Net Increase /(Decrease) in Cash and Cash equivalents Add: Cash & Cash equivalents at the beginning of the period Cash & Cash equivalents at the end of the period Year ended 31-Mar-21 453.3 266.5 Year ended 31-Mar-20 Year ended 31-Mar19 259.8 Year ended 31-Mar-18 221.0 54.5 45.7 18.6 9.6 507.8 312.2 278.5 230.6 25.6 -9.4 -112.7 -100.0 533.4 302.8 165.8 130.6 107.9 81.4 88.1 83.1 425.4 221.4 77.7 47.4 -257.7 -117.9 -35.3 -39.6 -47.1 -61.4 -65.4 7.2 120.7 42.2 -23.1 15.0 92.6 50.5 73.5 58.6 213.3 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 2. Appointed date for merger of ECC and SCIL is 1st Apr'18 33#34Key Takeaways ■ ■ Formidable Player in the Indian Agro-chem Space Strong leadership position across products and processes Ability to develop new combination products (9 under registrations and additional under development) Experienced Management Team and Board of Directors Strong and management autonomous Board with vast experience and domain expertise Localized experience enables better understanding of market needs to drive growth Well-diversified Product Portfolio Across Agro-Chem Value Chain multi-geography, Multi-product, multi-customer de-risking ■ Access to an impressive range of own actives along with significant exposure towards speciality products resulting in product offerings at all price points serving multiple customers sub-segment Strong Brand and Well-Entrenched Distribution Network 23 states, 65+ depots, 14,000+ distributors, 40,000+ dealer network High credibility and brand recall amongst famers and the trade on account of transparent and ethical business dealings To Benefit from Strong Parentage of SCC Japan ☐ Benefits from international standing of SCC Japan; most well revered brand renowned for its quality ■ Access to SCC's global supply chain and global R&D activities (one of the largest spenders) resulting in development of actives and broad range of formulation research ☐ ☐ State-of-the-art Manufacturing and R&D Facilities Operates five manufacturing facilities with state-of-the-art plants at strategic location which helps reduce logistic time and costs Capacity not a constraint allowing for significant growth on existing investments ▪ Holds 27 patents and further 9 applications filed Strong Track Record of Driving Growth ■ Grown 11X over FY11-21 driven by organic and inorganic expansion; 11% CAGR for merged entity (including Excel Crop Care) over the same period Debt free balance sheet with strong return ratios 34#35Annexures Awards & Accolades Details on Merger with Excel Crop Care Ltd.#36Awards & Accolades Shramveer award for improvement of product efficiency received from national level Delhi Vishwakarma Rashtriya Puraskar received for process development National Safety Award by Labour Ministry, Government of India for safety performance Shramveer Award to employees from Labour Ministry, state level received six times Shram Bhushan Award to employees received five times DI DI DI DI DI DI DI DI Jamnalal Bajaj Award for "Fair Business and Practices" First ever president's gold shield for import substitution First award for export of organic and inorganic chemicals ICMA award for innovation and purposeful programs for social progress First Sir P.C. Ray award for development of products and process with indigenous technology Punjab Haryana Delhi Chamber of Commerce and Industries award for ethical business Winner active ingredient trophy and certificate from M/s. Bayer Trishul award for the excellent performance for exports in international markets DI DI DI DI DI DI DI Shram Ratna to employees, received seven times Shram Shri award to employees received three times Gujarat State Safety Certificate for safety commitment 36#37Merger of Excel Crop Care to Unlock Value Successfully and smoothly completed the merger Pre-Merger Structure Post-Merger Structure SCC and its affiliates (Japan) 44.98% Public Shareholders SCC and its affiliates (Japan) Public & Others 35.03% Excel Crop Care (ECC) 75% 25% 100.00% 19.98% Sumitomo Chemical India Limited (SCIL) 01 Sumitomo Chemical India Limited (SCIL) De-risked Portfolio Presence in both technical & formulation manufacturing and across complete range of products ⚫ SCIL issued shares to shareholders of ECC (other than itself) and to get listed (shares held by SCIL in ECC stand cancelled after merger) ⚫ ECC's other shareholders, received 51 fully paid-up equity shares of SCIL of face value of INR 10 each for every 2 (two) fully paid-up equity shares of face value of INR 5 held in ECC 02 • Equity shares of SCIL listed on the Stock Exchanges from 27th Jan 20 "Long term Commitment from SCC, Japan" Highly Complementary Offerings Spread across generics & speciality and to leverage dual brands for offerings across the price spectrum 03 Distribution Scale Well-entrenched pan-India network and synergies in product marketing 04 Operational Synergies Continuous improvement in manufacturing efficiencies, location realignment and process efficiencies to lead to margin expansion 05 Undivided Parent Focus Backing of a well-established parent company with single focused entity of scale to drive India expansion 37#38For further information, please contact: Company: Investor Relations Advisors: Sumitomo Chemical India Limited CIN: L24110MH2000PLC124224 Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya +91 99206 02034 [email protected] [email protected] www.sgapl.net For further information, kindly visit our new website www.sumichem.co.in