#1LAXMI ORGANIC INDUSTRIES LTD www.laxmi.com Investor Presentation - 26th May, 2021#2Disclaimer Certain statements and opinions with respect to the anticipated future performance of Laxmi Organics Ltd (Laxmi) in the presentation ("forward-looking statements"), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Such forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward- looking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Such forward-looking statements only speak as at the date the presentation is provided to the recipient and Laxmi is not under any obligation to update or revise such forward-looking statements to reflect new events or circumstances. No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient's purposes. The delivery of this presentation does not imply that the information herein is correct as at any time subsequent to the date hereof and Laxmi has no obligation whatsoever to update any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent subsequent to the date hereof. www.laxmi.com#3Agenda 01 Company overview 02 Business 03 Strategy 04 Financials#4Company overview LAXMI ORGANIC INDUSTRIES LTD#5Company overview Large scale organic chemical manufacturing for more than three decades Combined with YCPL the Company will become the largest manufacturer of Ethyl Acetate (ETAC) in India and among the top 7 in the world Only manufacturer of Diketene derivatives in India with ~55% market share Forayed into high margin specialty fluorochemicals by acquisition of Miteni, Italy Diversified portfolio of more than 50 products catering to pharma, agro, paints & coatings, printing & packaging, dyes & pigments industry segments Global footprint with offices in Europe, China, Middle-East with stock points in Europe Marque customers in high growth applications in 30+ countries DSIR approved 2 R&D facilities with state-of-the-art infrastructure www.laxmi.com 5#6De-risked business model with diversified customer base Pharma Ingredients (API) India market - Growth Diversified customer base (2019-24 CAGR) 11% % of revenue from sale of manufactured products & services 7% 11% Agrochemicals & Fertilizers 10% 11% FY21 BY Dyes & Pigments 11% 11% 0 Paints & Coatings 11% Pharmaceuticals Agrochemicals Flavor & Fragrance 13% Ingredients ■Chemicals Source: Frost & Sullivan Report 27% 33% Printing and Packaging Colour and pigment Others www.laxmi.com 6#7De-risking through presence in different geographies Robust export earnings (INR mn) Low dependence on a single export market FY21 sale break-up 3,972 3,541 3,293 2,863 FY18 FY19 FY20 FY21 Americas, 7% Rest of Asia, 17% China, 1% Africa, 7% Europe, 41% Middle East, 19% Russia, 8% Customers in 30+ countries, including UK, USA and UAE among others Local presence & International offices facilitate in sales & market insights Arrangements for storage of finished products in key markets ensures delivery on short notice www.laxmi.com 7#8In-house Research & Development capabilities Consistent technology absorption to develop new potential marketable products o Developed five different chemistry platforms on commercial scale o Addition of 34 New Products to the SI Platform in the last 8 years o 2 of the new piloted molecules in SI ready for commercialization R&D - Key growth driver of business o Two DSIR recognised R&D facilities working on ketene, diketene & other complex chemistries o Dedicated team of 49 employees - focused on innovations in chemistry & engineering o Unlocked value in various complex chemistries, resulting in higher margins & revenues ● Patent in European countries and USA www.laxmi.com 8#9Business L LAXMI ORGANIC INDUSTRIES LTD#10Revenue (INR mn) Overview of Acetyl Intermediates (AI) business Comprising of ETAC, acetaldehyde, ethanol & other customised solvents Growing capacity utilisation Expanding manufacturing capabilities 8,954 9,139 8,145 6,497 161000 MTPA + Acquisition of YCPL 80% 84% 84% 64% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Competitive Edge • Strong conversion efficiencies aid consistent contribution margin across business cycles Strategic location, backward integration, large storage capabilities help achieve economies of scale 11000 MTPA Acetaldehyde 29000 MTPA ETAC 201,020 MTPA www.laxmi.com 10#11Overview of Specialty Intermediates (SI) business - Basket of 34+ products – ketene, diketene derivatives (esters, acetic anhydride, amides, arylides & others) Healthy revenue contribution from new products Highly versatile products (INR mn) 51% 46% 48% Pharmaceutical 1 42% 36% 5,069 2 Agrochemicals 4,562 4,083 4,368 3,259 Dyes & Pigments 3 4 Flavor & Fragrance Paints & Coatings 5 FY17 FY18 FY19 FY20 FY21 6 Stabilizer for Polyester & PVC Revenue -Revenue from products developed in-house Broad based growth • Product mix optimization improving profitability Acquisition of significant international accounts www.laxmi.com#12Fluorospecialty– Differentiated position in chemical manufacturing Growth drivers of fluorochemicals O One in every 3 new APIs will be based on fluorine chemistry o Upto 20% of pharma molecules contain Fluorine atom ● 50% of agrochemical molecules developed recently have fluorine Diversification into high margin fluorospecialty chemicals... Miteni (Italy) Manufacturer of organic fluorospecialities & electrochemical fluorination Plant & Machinery Design & Operating Paperwork 41 REACH registrations 14 Patents Progress Laxmi well poised to leverage the opportunity with its experience in complex chemistries ○ Total spend till 31st March 21 - Rs. 1000 million R&D in India - Kilo Lab operations have started World-class technology, library of 100+ products in R&D and scale-up stages, multi-purpose facility O Dismantling activities have restarted and the initial container loads will start in June 21 Civil and infrastructure work at Lote, India is more than 50% complete ○ A team of more than 40 is working in India and Italy O R&D in Italy - Plan to start by end of Q2 FY22 www.laxmi.com 12#13Strategy LAXMI ORGANIC INDUSTRIES LTD#14Strategy Increasing global footprint Creation of subsidiary in USA with an aim of having a stock point in the US Operationalise Chinese subsidiary and have stock point in China to supports exports to China Continuing focus on innovation • Leverage know-how in complex chemistries to add downstream & value-added products о New products in AI & SI segment to have synergies in raw materials & processes with existing products Dedicated R&D unit for fluorospecialty for long term growth opportunity 。 Acquired 30000 sq ft of R&D floor space near Mumbai Establishing the fluorospecialty business Capture market share of Miteni, utilising existing chemistries & past customer base Dismantle & relocate assets to India, with marketing support in Europe Leverage existing relationships in pharma & agro sector to boost market entry www.laxmi.com 14#15Financial performance L LAXMI ORGANIC INDUSTRIES LTD#16Networth EBITDA 12,000 10,000 8,000 6,000 The financial journey 8,594 Rs. in millions 10,751 10,778 10,484 15,743 15,386 13,961 20,000 17,731 18,000 16,000 14,000 12,000 10,000 8,000 6,031 4,000 5,095 6,000 3,434 2,213 4,000 2,000 2,140 1,544 1,591 1,437 1,210 804 873 607 645 701 822 2,000 226 Revenue EBIDTA Net worth FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Net worth 10-year growth trajectory EBIDTA Revenue Revenue Note: FY21 Net worth includes IPO proceeds of Rs.4843 million received in Mar 21 5-year growth trajectory CAGR 15% Revenue 12% EBIDTA 23% Net worth CAGR 13% 16% 36% www.laxmi.com 16#17Standalone results (Rs Mn) Q4FY21 Q4 FY20 Variance % Rs in Mn FY21 FY20 Variance % Revenue 4,708 3,428 37% Revenue 16,156 13,663 18% ΑΙ 2,806 1,802 56% ΑΙ ব 9,139 8,145 12% SI 1,572 1,129 39% SI 5,069 4,368 16% Others 330 497 -34% Others 1,947 1,150 69% EBITDA 590 266 122% EBITDA 2,119 1,252 69% EBITDA margin 12.5% 7.7% EBITDA margin 13.1% 9.2% Profit After Tax 312 133 135% Profit After Tax 1,226 786 56% EPS 1.34 0.60 EPS 5.40 3.21 Return on Capital Employed 18.7% 17.6% www.laxmi.com 17#18Consolidated results (Rs Mn) Q4FY21 Q4 FY20 Variance % Rs in Mn FY21 FY20 Variance % Revenue 5,213 3,879 34% Revenue 17,731 15,386 15% EBITDA 654 210 211% EBITDA 2,213 1,437 54% EBITDA margin 12.6% 5.4% EBITDA margin 12.5% 9.3% Profit After Tax 364 102 257% Profit After Tax 1,271 702 81% EPS 1.56 0.46 EPS 5.59 2.86 Return on Capital Employed 18.9% 15.6% www.laxmi.com 18#19Financial performance trend Revenue from operations (INR mn) EBITDA profile (INR mn) 17,685 15,685 15,341 13,931 1,522 1,556 1,180 2,213 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 PAT profile (INR mn) 763 727 702 Return ratios 1,271 24 22 19 19 18 17 16 16 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ■ROE(%) ■ROCE(%) Figures on consolidated basis; RoE = PAT / Average Net worth; ROCE = EBIT/Average Capital Employed; Capitali Employed for FY21 includes IPO proceeds of Rs.4843 million received in Mar 21 www.laxmi.com 19#20Financial performance trend Asset turnover (x) 1.8 Working capital days (x) 52 51 1.7 1.5 1.2 FY18 FY19 FY20 FY21 Leverage profile (x) 0.40 0.40 FY18 FY19 0.30 FY20 0.00 FY21 33 27 FY18 FY19 FY20 FY21 Cash Inflow from Operations before WC changes and Capex Outgo (Capex Outgo pertains to LOIL only) 1,143 1,191 1,057 972 884 FY18 FY19 333 FY20 Figures on consolidated basis; Asset Turnover = Sales / Average Total Assets; Working Capital Days = 365 * (Inventories + Receivables - Payables) / Sales; Cash Flow from Operations = PAT + Depreciation 1,736 878 Operating Cash inflow ■Capex FY21 www.laxmi.com 20#21Glossary о ETAC - Ethyl Acetate о Al-Acetyl Intermediates о SI - Specialty Intermediates О DSIR - Department of Scientific and Industrial Research о IFC - International Finance Corporation о LOIL - Laxmi Organic Industries Ltd О YCPL - Yellowstone Chemicals Pvt Ltd о YFCPL - Yellowstone Fine Chemicals Pvt Ltd AHPL - Acetyls Holdings Pvt Ltd о R&D - Research and Development O WC - Working Capital о REACH - Registration, Evaluation, Authorisation, and Restriction of Chemicals www.laxmi.com 21#220000 THANK YOU