#1www Jyoti Resins and Adhesives Ltd Q1 FY2024 Investor Presentation EURO 7000 SYNTHETIC WOOD ADHESIVE#2Safe Harbour Statement EURO 7000 SYNTHETIC WOOD ADHESIVE This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of Jyoti Resins and Adhesives Ltd.("Euro 7000" or "Company"), nor shall part, or all, of this document form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities of the Company. This document is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose. The information in this document is being provided by the Company and is subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This document contains statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this document that is not a statement of historical fact is a forward looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the document. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. You acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. Investor Presentation 2#3CORE TOPICS Quarter Performance highlights Performance snapshot | Stronger Balance Sheet; Improving Cash Flows Financial highlights 01 Business Model Business Model | 02 Our competitive edge EURO 7000 XTRA (ANTI TERMITE SYNTHETIC WOOD ADHESIVE Investor Presentation Way forward Way forward 03 04 50 05 EURO 7000 SYNTHETIC WOOD ADHESIVE Company background About Us Our Journey | Our Network | Manufacturing | Our strengths & commitment | Management Team | Annual Performance snapshot | Financial highlights Product Portfolio, New Products, Digital Adervtisement, Events Diversified product portfolio | New Products | Digital Ads | Recent Dealer Events 3#4EURO 7000 SYNTHETIC WOOD ADHESIVE Performance Highlights#5Performance Snapshot EURO 7000 SYNTHETIC WOOD ADHESIVE 62.5% Gross Margin Vs 41.4% in Q1FY23 33.9% EBITDA Margin Vs 17.0% in Q1FY23 90.6% Growth in 94.4% Growth in EBITDA PBT YOY YOY 25.7% PAT Margin vs 14.2% in Q1FY23 73.5% Growth in Net Profit & EPS YOY Gross Margin improvement to 62.5% led by easing of supply side constraints. This has led to highest ever EBITDA and PBT Margin for any quarter at 33.9% and 25.7% respectively. Volume growth was marginally lower YoY due to unseasonal cyclone and heavy rains in certain key states. Company has forayed into new States/UT namely New Delhi & Uttar Pradesh with 5 branches. As on 30 June 2023, company has Cash & Cash Equivalents to the tune of Rs 700+ mn, thereby continuing to be debt free. Company has initiated the process of appointment of RB Kabra & Co LLP as statutory auditors for approval at the upcoming AGM. RB Kabra & Co LLP is now in partnership with Ecovis, which is a European global consulting firm with core competencies in tax, audit and legal. Investor Presentation 5#6Quarterly Financial highlights EURO 7000 SYNTHETIC WOOD ADHESIVE (All values in Rs mn) Q1FY24 Q4FY23 Q1FY23 YOY% FY23 FY22 YoY% Net Sales 611.8 650.8 639.1 -4.3 2,612.5 1,819.6 43.6 Expenditure 404.4 450.3 530.2 -23.7 2,006.3 1,581.9 26.8 EBITDA 207.5 200.5 108.9 90.6 606.3 237.6 155.1 EBITDA Margin (%) 33.91% 30.81% 17.04% +1,688 bps 23.21% 13.06% +1,015 bps Other Income 5.6 17.5 2.1 171.9 22.6 34.5 -34.4 Depreciation 2.7 4.0 2.7 -1.2 14.5 7.1 104.6 Interest 0.0 0.3 0.0 -100.0 0.3 0.5 -32.8 Profit Before Tax 210.4 213.7 108.2 94.4 614.1 264.6 132.1 Tax 53.0 49.7 17.5 202.9 149.7 66.9 123.6 Profit After Tax 157.4 164.1 90.7 73.5 464.4 197.6 135.0 PAT Margin (%) 25.73% 25.21% 14.2% + 1,153 bps 17.8% 10.9% +692 bps Earnings Per Share (Rs) 13.12 13.67 7.56 73.5 38.70 16.47 135.0 Investor Presentation Note: Rs 10 mn = Rs 100 lacs Rs 1 crore = 6#7EURO 7000 SYNTHETIC WOOD ADHESIVE Business Model & Our Edge#8Business Model 01 The company imports raw materials from several countries. The raw materials are then processed and white glue is manufactured in their plant at Santej. The finished product is then packaged into different sizes starting from 500 gm upto 70 kgs. The products are then sold through a mix of Distributors and Consignee & Sales Agents into the retail market (sold to dealers). 02 At a team level, the company has zonal managers, area managers, sales executives and business development executives. The whole chain works cohesively towards the visibility, promotions, training of carpenters, use and applications, resolving customer issues, sales orders and processing, and other related activities. 33 03 The company also has an efficient carpenter reward model system which is a loyalty program for carpenters. On every bucket/drums purchased by carpenters, their receive certain amount of points, which are then recorded by downloading and logging into the app designed by the company. Post a certain threshold, the carpenters can then redeem these points in return for gifts in several forms/ modes of awards. 04 The company has a well established and customised ERP software, which integrates its sales, purchases, distributor and consignee agent ordering, billing inventory, receivables as well as the carpenter loyalty programme. Investor Presentation EURO 7000 SYNTHETIC WOOD ADHESIVE#9Our competitive edge Investor Presentation 01 02 03 04 EURO 7000 SYNTHETIC WOOD ADHESIVE Low cost manufacturing; Asset light Our network Diversified product portfolio - Overall manpower costs is limited to 15-16% of revenues - Selling and Distribution expenses maintained under 12% Asset turnover is at 8x - - - Amongst the highest EBITDA per tonne vis-à-vis peers Working capital efficient hence No Debt and OCF & FCF positive Presence in 14 states - Operating through 50 distributors for smaller cities Operating through 35 branches for bigger cities (metros) - Selling to 10,000 active retailers & working with 3 lac carpenters - 300 sales executives & business development executives The company offers a wide range of products with several features and catering to different substrates such as: - Anti Termite Wider coverage - Weather proof -Water proof -Fungal resistance -Fast drying -Heat resistance Our carpenter reward model -High fixing strength - Cold and hot press applications - - Multi purpose uses for Wood, PVC and Acrylic. We have one of the best and highest rewarding carpenter rewarding model in the industry - Reward & loyalty programs are devised state wise Company app provided to carpenters for claiming and redeeming points. Slab systems created on usage basis - 3 lac carpenters currently registered under this programme 9#10EURO 7000 SYNTHETIC WOOD ADHESIVE Way Forward#11Way forward EURO 7000 SYNTHETIC WOOD ADHESIVE ENHANCE PRODUCTION CAPACITY FURTHER Owing to sharp demand and growth in our market share, we completed the process of increasing our production capacity further to σ- 2000 TPM. Company is in the process of setting up a warehouse for enhancing storage of raw materials and finished goods. 01 EXPAND DISTRIBUTION NETWORK AND OUR BRANCHES We are looking to expand and increase our penetration in existing states with increase in branches and distributors with an eye on improving our market share. Foray into new states & increase efficiencies in established states. GROWTH OVER NEXT 3-5 YEARS Over the last 5 years, we have grown at CAGR of 38%, 103%, 113% on Revenue, EBIDTA, PAT. We are targeting 25% CAGR for Revenues over the next 3 years (Base Year: FY2023) RETURN RATIOS; DEBT FREE; IMPROVE WORKING CAPITAL EFFICIENCY Continue to maintain +30% ROE and +40% ROCE. Stay debt free and generate positive operating cash flows and free cash flows. Reduce liabilities for expenses (for redemption points) further from current 31% of revenue Investor Presentation 04 03 02 11#12EURO 7000 SYNTHETIC WOOD ADHESIVE Company background#13About Us The company launched its brand "Euro 7000" in 2006, and is now the second largest (No 2) selling wood adhesive (white glue) brand in India in the retail segment. EURO 7000 SYNTHETIC WOOD ADHESIVE Vision & Mission To Acquire National Leadership Position in Wood Adhesives Field In Retail Segment. To be India's most Preferable Adhesive Brand For The Carpenters, where Our End Users Can find The Best Solution For Gluing The Furniture. We Believe To Continuously Create New Opportunities For Our Team Members To Do Growth In Our Strategic Business. • ⚫ JYOTI RESINS AND ADHESIVES LTD is a manufacturer of synthetic resin adhesives. The Company manufactures various types of wood adhesives (white glue) under the brand name of EURO 7000. • . The company launched its brand "Euro 7000" in 2006. • The company has steadily increased its plant (at Santej, Ahmedabad) capacity to 1000 Tonnes per month, expanded capacity to 2000 TPM (24,000 TPA) in Aug'22. • Euro 7000 has today grown exponentially and is now the second largest (No 2) selling wood adhesive (white glue) brand in India in the retail segment. • • The company's success so far in this business is an outcome of its strategic vision focus on delivering world class products and services to its customers. Today it services 14 states in India through 35 branches and 50 distributors, catering to 10,000 active retailers and 3 lac carpenters across India. A 300 strong sales force plays a key role in this process. Investor Presentation 13#14Our Journey Established in 1994 by Chairman and first generation entrepreneur Mr.Jagdish Patel - 2005 Mr Utkarsh Patel, ED joins the business after completing Chemical Engineering; and Masters courses in Marketing and International Business Management 2007 company expand capacity to 250 TPM and enters new markets outside Gujarat 2012 Company forays into Maharashtra and other key markets 2018-2019 EURO 7000 SYNTHETIC WOOD ADHESIVE Presence grows to 12 states & capacity to 1000 TPM 2023 Foray into New Delhi & UP with 5 new branches. 01 02 20 03 04 50 05 06 07 08 80 60 09 10 11 IPO in the year 1994-95. Manufacturing setup at Santej, Ahmedabad over an area 8000 square yard Investor Presentation 2006 - Euro 7000 brand launched-white glue - premium adhesive for retail 2010 - Company forays into Rajasthan markets 2016-2017 Company expands production capacity to 500 TPM 2022 Company expands capacity to 2000 TPM. Initiates process to setup warehouse. 14#15Our Network today 300 14 STATES SALES FORCE Jammu & Kashmir Amritsar Ludhiana O Himachal Pradesh Punjab Chandigarh Uttarakhand Haryana ° O Delhi Rajasthan C Jaipur Uttar Pradesh 10,000 Jodhpur Bhilwara Udaipur о Kota 35 Madhya Pradesh BRANCHES ACTIVE RETAILERS ° Gujarat EURO 5 Bhopal 0 Indore Jabalpur Rajkot O Baroda Chhattisgarh B 50 DISTRIBUT- ORS 300,000 CARPEN- TERS Investor Presentation Surat Nashik Jalgaon Amravati Aurangabad Maharashtra Nagpur ዕ Mumbai Pune Latur Solapur Sangli Hyderabad Kolhapur Andhra Pradesh Go Karnataka Bangalore Chennai Coimbatore Kerala a Tamil Nadu Bihar Sikkim Arunachal Pradesh Assam Nagaland Meghalaya Manipur Jharkhand Tripura West Bengal Mizoram Orissa Kolkata EURO 7000 SYNTHETIC WOOD ADHESIVE EURO 7000 XTRA SINTHETIC WOOD ADHESIVE EURO 7000 WP#16Manufacturing & Operations EURO 7000 SYNTHETIC WOOD ADHESIVE Manufacturing Plant Our manufacturing plant at Santej, Ahmedabad, Gujarat is currently at 2000 TPM (24,000 TPA). Administrative Offices Our corporate office is at Ahmedabad, Gujarat. We also have an Administrative Office in Mumbai. Other than this we have 35 branch offices & warehouses across key cities & states. Investor Presentation 16#17Our strength & commitment 14 STATES 35 BRANCHES 50 DISTRIBUT- ORS Best Customer Service High Quality Machines Quick Delivery Investor Presentation EURO 7000 SYNTHETIC WOOD ADHESIVE Strong Technical Support High Standard Raw Material Strong Warehousing Facilities A 300 SALES FORCE 10,000 ACTIVE RETAILERS 300,000 CARPEN- TERS 17#18EURO 7000 SYNTHETIC WOOD ADHESIVE +40% Return on Equity +50% Return on Capital Employed Second Largest brand in India Clear lead as 2nd largest Wood Adhesive brand in India (retail segment) Debt Free Continues to be Net Debt negative since FY18 Dividend 60% Dividend Per Share 15.5% Dividend Payout for FY23 Shareholders Funds increased by 70% YoY in FY23 to Rs 1,060 mn Consistent growth in Operating Profit & Net Profit. Both have increased by 1.5x & 1.35x in FY23 (YoY) Revenue touched Rs 262 cr in FY23 Current production capacity stands at 2000 TPM Promoter holding Increased from 49.97% in Mar 2022 to 50.82% as on Mar 2023 Investor Presentation 18#19EURO 7000 SYNTHETIC WOOD ADHESIVE iiii Jagdish N Patel Chairman Mr Jagdish N Patel is the first generation entrepreneur and started this company in 1994 eyeing the huge opportunity he saw in the market for organized players in adhesives. With his financial prowess and effective team management capabilities, he built the strong foundation on which Euro 7000 stand today. Management Team Utkarsh J Patel Managing Director In 2005, Mr. Utkarsh Patel, Executive Director, joined the business, after completing his Chemical Engineering and Management courses in the field of Marketing and International Business Management. He is currently driving the business on all fronts and has been instrumental in the operational turnaround of the business, with a vision to be the next big participant in the adhesives industry in India. Investor Presentation 19#20EURO 7000 SYNTHETIC WOOD ADHESIVE Product Portfolio#21Diversified Product Portfolio EURO 7000 XTRA HETE WIDADES Anti termite applications EURO 2000 WP 2in1 EURO 2in1 Water proof, Anti termite, Heat & fungal resistant EURO 7000 PVCGluc TVC to 4000 Adres EURO 7000 SYNTHETIC WOOD ADHESIVE EURO EWR EURO 2000 Extreme 3 Cold & Hot press applications Waterproof, Anti termite, Fast drying (2-3 hours) EURO Extreme 3 HI-STRONG EURO ULTRA 5in1 SYNTHETIC WOOD ADHESE Waterproof, Anti termite, Heat & fungal resistance For PVC and Acrylic sheet bonding to wood; pre edge bending taps Waterproof, Anti termite, Fast drying (2-3 hours) Waterproof, Anti termite, Fast drying (2-3 hours), Weather Proof Investor Presentation *click on product to see video for use and application 21#22Product Launches (last 12 months) Extreme 3 Hi-Strong EURO 7000 Extreme HI-STRONG PERFORMANCE ADHESIVE . • • THREE BENEFITS IN ONE Fast Drying Adhesive with 2-3 hours handling strength Waterproof adhesive Anti termite formula Investor Presentation EURO 7000 SYNTHETIC WOOD ADHESIVE EURO EWR EWR D2+ EURO 7000 EWR WATER RESISTANT AIXIESNE EURO 7000 EWR NATE FORNITE ADHESIVE COLD PRESS EXPERT • Suitable for cold press Economy grade with extra strength • Use for furniture industry • HOT PRESS EXPERT Suitable for Hot & Cold Press • D2+ Formula • Fast Drying . Packing: 50 kgs drum • Powerful strength • Packing: 50 kgs drum pack Anti Termite formula water resistant adhesive D2+ Grade Adhesive with Fast Drying Formula 22#23Applications 500gm 20kg 10kg USAGE OF OUR PRODUCT 5kg EURO EURO 7000 7000 2kg 1kg 5in1 EURO Extreme 3 THE WOCE ADHES EURO WP SYNTHERIC WOOD ADHESIVE 2in1 EURO EURO Residential Commercial Industrial All Products Available In All Sizes Investor Presentation PAKKA JOD, HAMESHA EURO 7000 SYNTHETIC WOOD ADHESIVE Extreme Weather Condition Water Proof Termite Proof 23#24Digital Advertisements #SachiMein - EURO 7000 Ultra 5in1 22K views 1:13 1:02 #SachiMein - EURO 7000 WP: 2in1 57K views Navratri Mein EURO 7000 Ka Pakka Jod 16K views Investor Presentation 1:11 EURO 7000 SYNTHETIC WOOD ADHESIVE #SachiMein - EURO 7000 Extreme 3 0:54 83K views 24 *click on images to see video#25Recent Dealer Events AMI CUR EURO 7000 SYNTHETIC WOOD ADHESIVE FRO Dealer (500+) Meet - Ahmedabad, Gujarat Dealer (200+) Meet - Jodhpur, Rajasthan Dealer (200+) Meet - Vadodara, Gujarat EWR D2+ kpack CRO Dealer (300+) Meet - Rajkot, Gujarat Dealer (550+) Meet - Mumbai, Maharashtra Dealer (175+) Meet -Nashik, Maharashtra Investor Presentation 25#26Connecting users & dealers digitally मजबूत जोड हमारे रिश्तों का.... EURO 7000 An ISO 9001:2008 certified company PASSBOOK FORM कॉन्ट्राक्टर Points Offer Token EURO + EURO Points WP 2in1 5in1 तारीख : कोन्ट्राक्टर नाम : मोबाइल : Sr. No.: शहेर : कोन्ट्राक्टर साईन युरो एक्जिक्युटिव साईन JYOTI RESINS & ADHESIVES LIMITED Investor Presentation www.euro7000.com EURO 7000 SYNTHETIC WOOD ADHESIVE कॉन्ट्राक्टर Points Offer Token + Points EURO 7000 WP 2in1 WATERPROOF ADHESIVE 101 PRIZES EURO 7000 SYNTHETIC WOOD ADHESIVE EURO 7000 SYNTHETIC WOOD ADHESIVE EURO 7000 ULTRA 5in1 SYNTHETIC WOOD ADHESIVE EURO Euro 7000 Product/Service Like यूरो एडहेसिव के फेसबुक पेज को लाइक, फॉलो और शेयर करो और ढेरसारी प्राइसिस जितने का मौका पाइये मजबूत जोड हमारे रिश्तों का.... Scan barcode & collect Loyalty Points 凸 20 Like Follow Share EURO EURO EURO EURO EURO EURO XTRA Enter 3 51 PVC CLUE Like, Share & Follow our facebook page 26#27Thank You FOR FURTHER INFORMATION PLEASE CONTACT EURO 7000 SYNTHETIC WOOD ADHESIVE JYOTI RESINS & ADHESIVES LTD Email: [email protected] Website: www.euro7000.com KKAPTIFY KAPTIFY Consulting Strategy & Investor Relation | Consulting Email: [email protected] Tel: +91 845 288 6099 Website: www.kaptify.in