#14 Galaxy Global Supplier to Global Brands February 11, 2023 National Stock Exchange of India Limited, Listing Compliance Department Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East) Mumbai 400 051 - Scrip Symbol: GALAXYSURF Galaxy Surfactants Ltd. BSE Limited, Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Scrip Code: 540935 Sub: Investor presentation on the Unaudited Financial Results for the quarter and nine months ended December 31, 2022. Ref: Regulation 30 (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dear Sir/Madam, We are enclosing Investor Presentation on the Unaudited Financial Results for the quarter and nine months ended December 31,2022. The information is also hosted in announcement section on the website of the Company at www.galaxysurfactants.com. We request you to take the same on record. Yours faithfully, For Galaxy Surfactants Limited NIRANJAN ARUN KETKAR Digitally signed by NIRANJAN ARUN KETKAR Date: 2023.02.11 19:36:18 +05'30' Niranjan Ketkar Company Secretary M. No. A20002 encl: as above Communication Address: Rupa Solitaire, Ground Floor, Unit no. 8, 12A and 14 Millennium Business Park, Mahape, Navi Mumbai, 400 710 Ph: +91-22-33063700 Regd. Office: C-49/2, TTC Industrial Area, Pawne, Navi Mumbai-400 703, India CIN: L39877MH1986PLC039877 Ph: +91-22-27616666 Fax: +91-22-27615883/27615886 e-mail: [email protected] Website: www.galaxysurfactants.com#2Galaxy Global Supplier to Global Brands Galaxy Surfactants Limited Investor Presentation - February 2023#3Safe Harbor Galaxy Global Supplier to Global Brands This presentation and the accompanying slides (the "Presentation"), which have been prepared by Galaxy Surfactants 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 whatsoever. 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. This Presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. Responsible Care OUR COMMITMENT TO SUSTAINABILITY 2#4Q3 & 9M FY23 Performance Highlights 3#5Q3 & 9M FY23: Key Developments Responsible Care OUR COMMITMENT TO SUSTAINABILITY Supply Side situation improves. Significant decline in Freight rates, raw material prices and improved availability vis-à-vis YTD Dec FY 22 aids performance While macro headwinds continue in AMET, Q-O-Q Volumes reflect some improvement. Slowdown in Europe impacts Specialty Volumes India remains resilient. Improving demand for premium categories aids growth. Demand for Mass and Masstige categories remained stable Pricing, Product Mix and Exchange Gain ensure EBITDA/MT stays well above the guided range 4 Galaxy Global Supplier to Global Brands While Supply Scenario continues to improve, Global Demand scenario remains uncertain. Given the volatility, risk management remains the key prerogative 4#6Q3 & 9M FY23 Consolidated Highlights Responsible Care OUR COMMITMENT TO SUSTAINABILITY 931 Total Revenue^ +16% 1,084 78 Q3FY22 Q3FY23 Q3FY22 Total Revenue^ 2,644 9MFY22 +31% 3,474 267 9MFY23 ^Includes other Income EBITDA +102% 158 EBITDA 46 Q3FY23 Q3FY22 +63% 437 164 PAT 4 Galaxy Global Supplier to Global Brands +133% Rs. In Crores 106 PAT Q3FY23 +77% 291 9MFY22 9MFY23 9MFY22 9MFY23 5#7Volume Highlights Responsible Care OUR COMMITMENT TO SUSTAINABILITY Volume: Q3FY23 Highlights Performance Surfactants Specialty Care Products Total Volume 4 Galaxy Global Supplier to Global Brands 39,156 21,044 36,983 58,027 58,364 19,208 Q3FY22 Q3FY23 India Market grew YoY by 12.2% Q3FY22 Q3FY23 Q3FY22 Q3FY23 Africa Middle East Turkey de-grew YoY by 6.4% Rest of the World de-grew YoY by 8.9% 6#8Volume Highlights Responsible Care OUR COMMITMENT TO SUSTAINABILITY Volume: 9MFY23 Highlights Performance Surfactants Specialty Care Products Total Volume 4 Galaxy Global Supplier to Global Brands 1,13,784 1,13,501 62,922 1,76,706 59,418 1,72,919 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 India Market grew YoY by 7.7% Africa Middle East Turkey de-grew YoY by 14.8% Rest of the World de-grew YoY by 0.5% 7#9Q3 & 9M FY23 Consolidated Highlights Revenue Highlights Responsible Care OUR COMMITMENT TO SUSTAINABILITY Performance Surfactants 570 +20% Specialty Care Products Total Revenue^ 683 361 Q3FY22 Q3FY23 Q3FY22 Performance Surfactants 1,646 9MFY22 +32% +11% 401 931 Q3FY23 Q3FY22 Specialty Care Products 2,165 998 9MFY23 ^Includes other Income +31% 1,309 2,644 4 Galaxy Global Supplier to Global Brands +16% Rs. In Crores 1,084 Q3FY23 Total Revenue^ +31% 3,474 9MFY22 9MFY23 9MFY22 9MFY23 00 8#10Consolidated Profit & Loss Statement Particulars (Rs. In Crores) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-O-Y Net Revenue from Operations 1,080.3 929.1 16.3% 1,231.6 -12.3% 3,470.8 2,632.8 31.8% Other Income 3.7 1.8 1.1 2.8 11.3 Total Revenue 1,084.0 930.9 16.5% 1,232.7 -12.1% 3,473.6 2,644.1 31.4% Cost of Material Consumed 739.1 674.1 900.5 2,441.3 1,882.8 Employee's Benefits Expense 60.0 51.6 62.7 184.6 153.5 Other Expenses 127.1 127.1 136.8 411.1 340.7 EBITDA 157.8 78.1 101.9% 132.8 18.9% 436.6 267.1 63.5% EBITDA Margin 14.6% 8.4% 10.8% 12.6% 10.1% Depreciation 21.6 17.7 20.5 61.0 52.7 EBIT 136.2 60.4 125.5% 112.3 21.3% 375.6 214.4 75.2% Finance cost 5.6 2.8 5.6 15.6 9.4 PBT 130.7 57.6 127.0% 106.7 22.5% 360.1 205.0 75.7% Tax expense 24.5 12.0 22.8 69.6 40.6 PAT 106.2 45.6 132.8% 83.9 26.6% 290.5 164.4 76.7% PAT Margin 9.8% 4.9% 6.8% 8.4% 6.2% Other Comprehensive Income 10.8 1.2 23.0 63.5 9.4 Total Comprehensive Income 117.0 46.8 150.0% 106.8 9.5% 354.0 173.8 103.7% EPS 29.96 12.86 23.65 81.92 46.36 Responsible Care OUR COMMITMENT TO SUSTAINABILITY As per Ind AS 4 Galaxy Global Supplier to Global Brands Fatty Alcohol prices in this quarter decreased to an average price of $ 1,393/MT vs, average prices of $2,603/MT in Q3FY22. The same was $ 1,490 /MT in Q2FY23 9#11Standalone Profit & Loss Statement 4 Galaxy Global Supplier to Global Brands Particulars (Rs. In Crores) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Net Revenue from Operations 760.7 656.4 15.9% 864.8 -12.0% 2,481.8 1,835.9 35.2% Other Income -2.8 4.9 -1.9 -8.7 16.4 Total Revenue 757.9 661.3 14.6% 862.9 -12.2% 2,473.1 1,852.2 33.5% Cost of Material Consumed 545.8 497.5 660.1 1,850.7 1,378.8 Employee's Benefits Expense 34.5 28.1 35.1 103.7 81.3 Other Expenses 77.5 90.1 89.2 264.5 231.0 EBITDA 100.1 45.7 119.2% 78.5 27.5% 254.3 161.1 57.8% EBITDA Margin 13.2% 6.9% 9.1% 10.3% 8.7% Depreciation 13.5 10.9 12.9 38.2 32.6 EBIT 86.7 34.8 149.3% 65.6 32.0% 216.2 128.6 68.1% Finance cost 3.0 1.6 3.3 8.8 5.8 PBT 83.7 33.2 152.0% 62.4 34.2% 207.3 122.8 68.8% Tax expense 21.2 8.8 15.9 52.8 31.6 PAT 62.5 24.4 155.5% 46.5 34.4% 154.5 91.2 69.3% PAT Margin 8.2% 3.7% 5.4% 6.2% 4.9% Other Comprehensive Income 0.1 -0.1 0.1 0.2 -0.2 Total Comprehensive Income 62.6 24.4 156.6% 46.6 34.4% 154.7 91.1 69.9% EPS 17.62* 6.90* 13.11* 43.57* 25.74* Responsible Care OUR COMMITMENT TO SUSTAINABILITY As per Ind AS 10#12Business Overview 11#13Responsible Care OUR COMMITMENT TO SUSTAINABILITY Truly Indian MNC... Leading manufacturer of Ingredient for Home & Personal care Industry (HPC) Product applications across Mass, Masstige & Prestige range of Customers GLOBAL+LOCAL-GLOCAL Preferred supplier to leading Multinational, Regional & Local FMCG Brands Globally Recognized Integrated Across Full Value Chain of HPC Industry Advanced portfolio of Innovative Products & Solutions Galaxy Global Supplier to Global Brands Brand Custodian www Proven Credentials in R&D 12#14...Vertically Integrated in HPC Industry Responsible Care OUR COMMITMENT TO SUSTAINABILITY 4 Galaxy Global Supplier to Global Brands 205+ Product Grades 7 Strategically Located Facilities with Inhouse Project Execution Capabilities 5 in India, 1 in Egypt, 1 in US Extensive R&D Capabilities 74 Members, R&D Centre, Pilot Plant, Product Application Centre; PATENTED PATENTED PATENTED Indigenous Intellectual property 88 Approved; 15 Applied CLIENTS Serving 1,400+ Clients 80+ countries 1,800+ Employees across Presence across Sustainability - A way of Life all our Facilities 13#15We grow faster than HPC FMCGS India's Largest Manufacturer of Oleochemical based Surfactants and Speciality Care Products for Home Care and Personal Care Industries (HPC) Responsible Care OUR COMMITMENT TO SUSTAINABILITY Global Supplier to Global Brands 01 Consumer to Chemistry 02 Multiple Products across Categories 60 03 Innovation & Technology 04 High Growth Industry 05 4 Galaxy Global Supplier to Global Brands 14#16Our growth trajectory over Three Decades 1986: Incorporation of Company 1984: New Plant at Tarapur for Ethoxylates, Phenoxyethanol, Sunscreens 1994: New plant set up at Tarapur 1995: Acquisition of Galaxy Chemicals 1997: Sulfonation plant Setup at Taloja and Research Centre at Navi Mumbai 1998: Commissioning of new plant in Taloja 2004: setting up of EOU at Taloja 2009: Acquisition of Tri-K Industries • Galaxy Chemicals Egypt S.A.E. & Rainbow Holdings GmbH became step down subsidiary 4 Galaxy Global Supplier to Global Brands Revenue (Rs in Crores) 2011: Commissioning of Egypt and Jhagadia Plants 2014: Purchase of business of Surfactants International LLC 2016: Expansion of Jhagadia Plant for mild surfactants 3,698 2768 2,602 2,795 1317 1696 1801 162 1980 1984 1988 1990 1992 1994 1998 2000 2004 322 2007 382 589 2008 2010 2012 2014 2016 2019 2020 2021 2022 " " Responsible Care OUR COMMITMENT TO SUSTAINABILITY 1980-1990 IMPORT SUBSTITUTION Established credentials in surfactants/ specialty ingredients space Due to high import duties, personal care products were considered luxury goods Galaxy was a strong supplier for import substitution Developed a solid R&D base 1990-2000 INDIA GROWTH PHASE Post Economic Liberalisation, market for personal care products grew substantially ■ " Galaxy emerged as a strong player Grew ☐ exponentially led by innovation capabilities strong Focused on capturing the domestic market and large customer accounts Set up capacities to cater to the emerging requirements ◉ 2000-2010 EXPORT GROWTH PHASE Strategic shift with focus on Global markets expansion Made investments to acquire manufacturing facilities at USA, Egypt and established international offices ◉ Increased share of revenue from international business 2010-2022 GLOBAL ESTABLISHMENT ◉ Dominant Share in India Increased Global Participations ■ Supplier Recognitions (Global) ■ Strong R&D Capability ☐ Customer Partnership IPO - listing of the company on BSE and NSE Accepted as Global Vendor benchmarked with best International peers 15#17Our focus is Personal & Home Care Segment Hair Care Shampoos Conditioners Colorants Styling Gels Oral Care Toothpaste Tooth powder Mouth wash Home Care Carpet Cleaner Toilet Cleaner Detergents Fabric Cleaner Glass/Floor Cleaner 4 Galaxy Global Supplier to Global Brands Mass Mass -tige Prestige Serving needs across Consumer Segments Mass Mass -tige Prestige Skin Care Sun care Fairness Creams Moisturizing Creams Anti-ageing Creams Cosmetics Nail Polish Lip Colors Foundations Toiletries Hand washes/ Toilet Soaps / Body wash Shaving Cream / Lotions Responsible Care OUR COMMITMENT TO SUSTAINABILITY 16#18... with over 205+ Product Offerings Performance Anionic Surfactants Surfactants Non-lonics Surfactants FAES, FAS, LABSA Foam and Dirt removal properties Ethoxylates Amphoteric Surfactants Betaines Cationic Surfactants Speciality Care Products UV Filters Preservatives, Preservative Blends Speciality Ingredients Quats Sunscreen Agents (OMC, OCN & Others) Phenoxyethanol, Preservative Blends Consumer Benefits 4 Galaxy Global Supplier to Global Brands Cosmetics and Personal care products as emulsifiers and solubilisers Dermatological properties to reduces skin irritation Effective conditioning aids: substantively to hair and antimicrobial properties Absorb or block the harmful radiation, Mild for the skin with Moisturizing Reduced toxicity & prevent spoilage Mild Surfactants (MS), Proteins and Syndet & Transparent Bathing Bar Flakes, Surfactant Blends MS: Cleanse adequately without compromising basic function of skin Protein: cosmetic industry for conditioning, protection and strengthening of hair/skin, anti-irritancy, moisturization etc Bifurcation is only for Investor community as every product has different functionality Fatty Alkanolamides (FA) and Fatty Acid Easters (FAE) Other Care Products Conditioning Agents, Polyquats & Amine Oxides FA & FAE: Foam, viscosity boosters and pearlizer in a formulation Improves the quality of another material also called as moisturizers, conditioning benefits to the hair etc Responsible Care OUR COMMITMENT TO SUSTAINABILITY 17#19Our Business Segments... About Product Performance Surfactants "Substantive Raw Material in Customer's End-products" ■ Products are functional in nature where End- consumer require foaming & cleansing ? No. of Products Revenue Mix (9MFY23) Responsible Care OUR COMMITMENT TO SUSTAINABILITY ⑥Galaxy Global Supplier to Global Brands Speciality Care Products "Unique Functionality to Customer's End-products" ■ Niche & Premium products ■ ☐ Large volume consumption in all rinse-off formulations Low volume consumption ☐ Oligopolistic for most products ☐ Products are Pulled by FMCG as it is required due to impulse buying from end consumer 45 +products 62% Low penetration due to its unique application +products 160+ 38% 18#20Our Global Footprints Responsible Care OUR COMMITMENT TO SUSTAINABILITY USA: TRI-K Industries-100% owned Manufacturing R&D # Plants # Employees Marketing office 9MFY23: Revenue Breakup 33% 26% USA TRI K 1 Industries 67 Netherlands Egypt: 100% owned* Manufacturing Egypt Galaxy Chemicals (Egypt) S.A.E. Global Headquarters India India: Parent Entity R&D × Manufacturing # Plants R&D 41% # Employees 225 # Plants 5 Marketing office × # Employees 1,546 Marketing office ■ India ■ AMET ROW Presence in High Growth & Matured Markets 4 Galaxy Global Supplier to Global Brands 19#21"Consumer to Chemistry": Creation of Products Responsible Care OUR COMMITMENT TO SUSTAINABILITY Idea Stage 35 A Feasibility Stage 88 approved Patents and 15 applied Galaxy Global Supplier to Global Brands INDIA USA EUROPE 20 20 5 ROW 9 GLOBALLY Applied 15 Capability Stage M 88 Patents since 2000 15 Patent applied 3 Patent Granted in India in FY22 New product grades, process, efficiencies Products Added 2019-20 205+ Market Ready Stage 215 2015 2021-22 201 190 2012 2016 178 129 Product in the Market PRODUCT LAUNCH 1980 2013 109 Innovation Funnel 3 2009 20 20#22...with World-class R&D facilities Collaborative product development with Customers which helps Customers in choosing "Right Technology with Right Application" Inhouse R&D Team of 74 professionals comprising of doctorates, chemists and engineers Well-Equipped R&D Centre, Pilot Plant at Tarapur, Maharashtra; Product applications centre for proteins at Denville, USA Innovation Funnel (adopted in 2007) to consistently diversify product offerings, meet customer needs and consumer trends Responsible Care™ OUR COMMITMENT TO SUSTAINABILITY 4 Galaxy Global Supplier to Global Brands 21 24#23State-of-the-art Manufacturing Facilities Responsible Care OUR COMMITMENT TO SUSTAINABILITY Location No. of Units Installed Capacity Tarapur, Maharashtra ✓ 3 34,747 MTPA ✓ Galaxy Global Supplier to Global Brands Details 1 pilot plant for scale up and commercialisation of new products rolling out from R&D activities Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai Easy access to the Jawaharlal Nehru Port Trust, Navi Mumbai Taloja, Maharashtra 1 156,741 MTPA One of the largest sulfation facilities in India Jhagadia, Gujarat* 1 132,750 MTPA Located close to raw material source ethylene oxide Suez, Egypt* 1 117,500 MTPA New Hampshire, USA 1 600 MTPA Located in the Attaqa Public Free Zone, exempt from all direct and indirect taxes Access to the Suez Canal, can address AMET, Europe and Americas (North and South) markets Step-down Subsidiary - Tri-K Industries owns and operates for different grades of proteins for cosmetic applications *Environmental clearances for expansion and additional land available at Jhagadia and Suez plants 222 22#241,400+ Clients across 80+ Countries 4 Galaxy Global Supplier to Global Brands Unilever Dabur Procter & Gamble Colgate Palmolive Reckitt Benckiser Himalaya Henkel Emami Loreal CavinKare Long term strategic relationship with all of the top 10 customers Strict qualifications and extensive collaboration with customers for end-product development & Many more... 9MFY23: Revenue Contribution MNC Customers: 56% Regional Players: 10% Local & Niche Player: 34% Through Innovation funnel, Demonstrated Engineering & Technical excellence All FMCG Protocols accomplished by us which helped to create Decade old partners Of basket of 205+ products, clients has various requirement with different quantity with different pricing i mechanism Galaxy has created Integrated Value chain for long lasting relationship Responsible Care OUR COMMITMENT TO SUSTAINABILITY 23#2524 24 Awards & Certifications: Won in the Past Decade Innovation Zone Recognition from Clients Certifications Responsible Care OUR COMMITMENT TO SUSTAINABILITY marico "Certificate of Excellence in Samyut", 2017 Unilever GOLD MEDAL "Best Supply Partner", 2015 "Winning through Innovation" at the Partner to Win, 2012 Awards "Innovation Award" for Green Catalyst and Sustainability at the Partner to Win, 2014 Awards Received Gold Medal for "Galsoft GLI21", Organized by HPCI, ISCC and SOFW IHPCIA Iconic Company Indian HPC Industry GREAT PLACE ΤΟ WORKⓇ "Great Place to Work" for the Fiscal 2017-2018 Association RESEARCH Leadership INTERA Quality INSTITUTE Experti FOR MA URING Excellence "Silver Medal" in India Green Manufacturing Challenge 2016 for Jhagadia unit L'ORÉAL 4 Galaxy Global Supplier to Global Brands Award of Global Performance" for L'Oréal Asia Pacific 2012 "Certificate of Appreciation", 2008 Q COLGATE-PALMOLIVE "Certificate of Recognition", 2014 CavinKare 2018 CavinKare Long Standing Partner Award Making Lives Happier A TC ITC Limited Best Reliable Partner Award Best Value Addition Award Certificate of Appreciation For valuable association as a Business Partner CHEMEXCIL "Gold Award", Castor Oil and Specialty Chemicals Panel for export performance in large scale sector for the years 2011-2012, 2012-2013 and 2015-2016. Trishul Award in 2017 for the outstanding export performance CERTIFIED ISO 14001: 2004, COMPANY Various ISO Certification ecovadis SUPPLIER SUSTAINABILITY RATINGS EcoVadis Galaxy Group Mastenby No ICC WR/RM/G-1 Responsible Care OUR COMMITMENT TO SUSTAINABILITY Presented to GALAXY SURFACTANTS LTD ICC Indian Chemical Council Responsible Care, India GREEN Ⓡ TRIANGLE FOR SAFETY NSC-MC "Certificate of Appreciation" in occupational safety & health by National Safety Council of India for Taloja Plant, 2011 Ірм Japan Institute of Plant Maintenance "Special Award for TPM Achievement", 2008 IMC Chamber of Commerce and Industry "Certificate of Merit 2008 - Manufacturing Category" in the IMC Ramkrishna Bajaj National Quality Award 2008"#26Accolades Received in FY22 BW BUSINESSWORLD A Certificate OF SUSTAINABILITY PRESENTED TO MMSC India's Most Sustainable Companies 2021-22 TOP 30 Greenco A World Environment Day 2021 CHI Confederation of Indian Industry JiA ASSOCIAT INSTITUTE of QUALITY Galaxy Global Supplier to Global Brands CHI Confederation of Indian Industry Competition for recognition of Ecosystem Restoration by companies CII Sohrabji Godrej Green Business Centre here by recognizes that Water Shed Management - Drought locations in India initiative by Galaxy Surfactants Limited, Mumbai as an Excellent effort towards "Ecosystem Restoration" Certificate of Appreciation Jhagadia Industries Association would like to extend the highest appreciation to Galaxy Surfactants Ltd. For your generosity and cooperative spirit in helping Jhagadia Industries Association (JIA) run its campaign to support the people affected by the Covid-19 Pandemic since March 2020. With your support, we have been able to run multiple service campaigns to help the local administration and the affected population in various ways including: Setting up and supporting the running of Cosid Care Centers, running a Vaccination center for our employees and villagers from the adjoining villages, sanitizing adjoining villages and also the affected company premises, distribution of food packets, groceries, milk, vegetables, sanitizers, PPE kies etc. Please accept our humble thanks and heartfelt appreciation from JIA and all the beneficiaries. In association with Pradeep Bhargava Chairman KS Venkatagiri Executive Director 14th May, 2021 sharda Sustain CII GreenCo Council CII Green Business Centre Labs Paris Ashok Panjwani President Dald Sunil G. Sharda General Secretary Certificate This is to certify that team from Galaxy Surfactants Ltd Automatic Grease feeder is awarded with Gold Award in Restorative Category for presenting a Case Study at the 41st CII National Kai-Zen Competition Programme Date: 23-24 September 2021 Certificate Unique Code: Cl-IQ/2021/SEPT/11644 Certificate Issued on: 24 September 2021 CONFEDERATION OF INDIAN INDUSTRY-INSTITUTE OF QUALITY topSh Vipin Sahni Executive Director Cll Institute of Quality Galaxy Surfactants For the progressive and benchmark setting work done in the year gone, towards pushing their sustainability commitment and development URY Members: Mungo Park, Charman phant Subhash Chandana Stimp, and Sandeep Kands, Consultare at the word an Arpita Base-Act at St-End Shape/CD (ch, Miniya Chathard and Sun Labs Park Near Fatima Warsi per Cami Chi Bond and founds, exchanges Vide Tandel-tecture in Eatersity of Rading, Kartik Ganesan Aow and he havel Minan Dict of Affing and Ace Pros Panthe Cyl Amarchand Manguide See the Feeneyes bre Away Bate A Chain & Ch SW Sold&g #BWMostSustainableCompanies A CHI Confederation of Indian Industry CH INSTITUTE of QUALITY Certificate This is to certify that team from Galaxy Surfactants Ltd is awarded with Gold Award CI Confederation of Indian Industry CII in Innovative Category for presenting a Case Study at the 41st CII National Kai-Zen Competition Programme Date: 23-24 September 2021 Vipin Sahni Executive Director Certificate Unique Code: C-Q/2021/SEPT/11715 Certificate Issued on: 24 September 2021 Cil Institute of Quality CONFEDERATION OF INDIAN INDUSTRY - INSTITUTE OF QUALITY CII - GreenCo Star Performer Awards 2021 Certification of Recognition UN CERTIFICATE OF ACHIEVEMENT AWARDED TO Galaxy Surfactants Limited, Taloja In recognition of excellence in GreenCo Performance and achieving GreenCo Star Performer Award 2021 KS Venkatagiri Executive Director CII-Godrej GBC OCTOBER 2021 ESG Summit & Awards 2021 Friday, 10" December, 2021 Best ESG Initiative to Improve to Access to Clean Water WINNER Galaxy Surfactants Limited C Pradeep Bhargava Chairman, GreenCo Counc Cll - Godrej GBC Dr. J. LS Ganapati Chairman, GreenCo Assessors Panel C-Godrej GBC Conceptualised & Curated Hy transformance INSTITUTE of QUALITY Certificate This is to certify that team from Galaxy Surfactants Ltd Kaizen Diverter Valve is awarded with Silver Award in Restorative Category for presenting a Case Study at the 41st CII National Kai-Zen Competition Programme Date: 23-24 September 2021 Certificate Unique Code: CHQ/2021/SEPT/11649 Certificate Issued on: 24 September 2021 CONFEDERATION OF INDIAN INDUSTRY-INSTITUTE OF QUALITY Responsible Care OUR COMMITMENT TO SUSTAINABILITY 48. Vipin Sahni Executive Director Cl Institute of Quality INDIAN CHEMICAL COUNCIL NATIONAL ENERGY MANAGEMENT AWARD 2021 ICC ftward 2020 ICC Acharya P. C. Ray Award for Development of Indigenous Technology Conferred on GALAXY SURFACTANTS LTD. Navi Mumbai EXCELLENT ENERGY EFFICIENT UNIT GALAXY SURFACTANTS LTD. 25#27ESG Initiatives 26#28Environment Responsible Care OUR COMMITMENT TO SUSTAINABILITY 4 Galaxy Global Supplier to Global Brands Water Stewardship • • • Ensuring the manufacturing units in India are Zero Liquid Discharge Units since 2017 Aim to achieve ZLD at our Egypt location as well Multiple water conservation projects like recycling, condensate recovery, steam recovery and have even incorporated several water stress adaptation projects in society Other initiatives are rainwater harvesting, drinking water availability, Rejuvenation of Wells, proper sanitation facilities, check dam creation, De-silting of water bodies, Installation of Kedia Farm Pattern (Patended) rainwater harvesting structures in fields of farmers etc. In year 2021, restored 4,15,261 Cubic Metres (CuM) of water back to the environment in comparison to its withdrawal of 2,97,513 CuM of water Waste Management . • Classify waste mainly as Hazardous and non-Hazardous waste. Reducing waste at the point of generation, re-using it for different processes, and proper disposal through relevant channels World-class practices as TPM (Total Productive Maintenance) is adopted at the manufacturing sites over several years Implemented CEP and Waste Elimination Suggestion Award Program (WESAP) projects that have reduced waste . Climate Change Setting emission targets in line with the Science Based Targets approach Initiatives towards resource efficiency, cost savings, adoption of low-emission energy sources, development of new products Implemented ISO 50001:2018 Energy Management System at Taloja Manufacturing Unit Measure and monitor SOX, NOx, PM (Particulate Matter) emissions on a regular basis at manufacturing sites in India Stack emissions are measured and monitored on regular basis by authorized third party agencies Increasing Renewable Energy Consumption Commissioned installation of Roof Top solar panels and completed overall around 803 kWp solar installations at its • corporate office and manufacturing sites at Taloja and Jhagadia 27#29Galaxy Global Supplier to Global Brands Galaxy Surfactants Ltd. has been certified as 1.4X water positive Because businesses thrive only when communities thrive#30Achieved the status of being a water positive company Responsible Care OUR COMMITMENT TO SUSTAINABILITY Commemorating World Water Day, 2022, Galaxy Surfactants emerged as among the few Indian companies to achieve water positive certification and become 1.4X water positive 4 Galaxy Global Supplier to Global Brands The certification was granted by DNV Business Assurance India Private Limited which carried out verification of Galaxy's Water Accounting Data for its operational plants at Tarapur, Taloja and Jhagadia and Corporate Office at Navi Mumbai in India From January '21 to December '21, Galaxy Surfactants restored 4,15,261 (CuM) cubic metres of water back to the environment in comparison to its withdrawal of 2,97,513 CuM of water Galaxy Surfactants, with the principles of Water Stewardship, has directed its operations to ensure the usage of water, socially and culturally equitable, environmentally sustainable, and economically beneficial. DNV adopted a risk-based approach and conducted the onsite and off-site evaluation of the qualitative and quantitative information and Water Debit and Credit data presented in Galaxy Surfactants' Water Report 29#31Social Responsible Care OUR COMMITMENT TO SUSTAINABILITY Employee Safety, Health & Well being Fair Labour Practices Women Empowerment 4 Galaxy Global Supplier to Global Brands • Implemented ISO 45001:2018 Occupational Health and Safety management system at various manufacturing locations Monthly safety performance is reviewed by the top management in monthly Safety & Conversion meet Safe workplace environment and imparts training to all its employees on regular basis Regularly provide training to company and contractor employees on topics like behavioural safety, Fire Safety, SCBA, MSDS, EMS-OH&S standard • Have well equipped OHC (Occupational Health Centre) which operates round the clock. • All the employees including contract employees undergo periodic medical check-up and health records are maintained well Laid down employee code of conduct (COC) applicable to all employees • A robust Grievance Redressal Mechanism in place and multiple forums for all employees to get resolutions Treating all employees equally, with dignity and with no gender bias Equal opportunity employer and are committed to including differently abled members of society • Set-up of forums for mentoring women employees and guidance by the leadership team • Promoting gender neutrality, women leadership and development, as well as providing a plethora of unique benefits for women • Aims To empower young women dwelling in slums and tribal areas and therefore: • Constructed '95 Household Bathrooms' for the protection of Dignity, Privacy, and Safety of women of Randedi village, Jhagadia Supported 3 Self Help Groups near the Taloja plant and provided them with the necessary infrastructural support to start their enterprise. • To date, out of 560 women that were given skill training, 445 succeeded in getting jobs and 5 started their own enterprises 30#32Corporate Governance Responsible Care OUR COMMITMENT TO SUSTAINABILITY Ethics Governance & Integrity . Board of directors constituted in compliance • with regulations Various committees constituted to oversee specific operational areas Dividend distribution policy Familiarization programme for independent Directors Risk Management 4 Galaxy Global Supplier to Global Brands Grievances Disclosures & Transparency Code of conduct laid down employee code of conduct Formulated Policy for addressing sexual harassment in the workplace Policy on Diversity and Formulated and implemented policy on risk management Occupational Health and Safety Management system implemented Employee welfare council formed for employee grievances and concern Separate forum formed for resolving grievances of security holders Vigil mechanism established for directors Inclusion • Policy on Health and Safety of Employees Focus on cybersecurity initiatives and employees • Comprehensive Employee Health Insurance Policy and Personal Accident Policy Whistle Blower mechanism • • A dedicated 'Investor Relation Page' on website for all investor information Timely disclosures of all annual report, quarterly results, press releases, investor presentations and other updates about the company Adopted Policy on Related Party Transaction ensuring appropriate reporting We are committed to highest standards of corporate governance in all its activities and processes. At the heart of the Galaxy corporate governance policy is the ideology of transparency and openness in the effective working of the Management and Board. 31#33Corporate Governance Responsible Care OUR COMMITMENT TO SUSTAINABILITY Governance Structure Shareholders Board of Directors 4 Galaxy Global Supplier to Global Brands Nomination & Stakeholder's Audit Committee Remuneration Committee Relationship Committee Corporate Social Responsibility Committee Risk Management Committee Management Team Organization 32#34Management Team on Board Responsible Care OUR COMMITMENT TO SUSTAINABILITY Mr. Melarkode G. Parameswaran Chairman •Appointed as Chairman w.e.f. 20th April, 2022 •Associated with Company since 2005 •Chemical Engineer from IIT Madras; PGDM from IIM Calcutta; PhD from Mumbai University Mr. Unnathan Shekhar Promoter, Managing Director •Associated with Company since 1986 ⚫Chemical Engineer, PGDM from IIM, Calcutta 4 Galaxy Global Supplier to Global Brands Mr. Natarajan K. Krishnan Executive Director, Chief Operating Officer •Associated with Company since 1993 •CWA, Advanced Management Program from Harvard Business School Mr. Vaijanath Kulkarni Whole Time Director (WTD) •Associated with Company since 1995 ⚫Chemical Engineer •Appointed as Whole Time Director in Galaxy Surfactants! w.e.f. 16th October, 2021 33#35Along with Guidance of Senior Board Members Responsible Care OUR COMMITMENT TO SUSTAINABILITY Mr. Gopalkrishnan Ramakrishnan Promoter, Non-Executive Director •Associated with Company since 1986 Qualified CA and CS Mr. Shashikant R. Shanbhag Promoter, Non-Executive Director Associated with Company since 1986 •Qualified CA 4 Galaxy Global Supplier to Global Brands Mr. Subodh S. Nadkarni Non-Executive Independent Director •Associated with Company since 2002, 30 years+ experience Qualified CA and CS, prior associations with Godrej and Sulzer Ms. Nandita Gurjar Non-Executive Independent Director •Associated with Company since 2015 •Over 20 years of experience in the field of IT and Human Resource Mr. Karanwar Bir Singh Anand Non-Executive Independent Director Recently appointed on the board, 40i years+ experience • Mechanical Engineer from IIT Bombay, PGDM from IIM, Calcutta I 34#36The 4 Cs: Our Core Strength CHARACTER Transparent & Open, Respect & Value People, Dreaming & Envisioning, Conducting Business with Integrity 03 COMPETITIVENESS Adhering to Global Quality Standards, Supplying Customers Globally, Agile & Nimble Footedness Responsible Care OUR COMMITMENT TO SUSTAINABILITY COMPETENCE Talented Team which proactively meets Complex & Changing Business Needs 4 Galaxy Global Supplier to Global Brands 24 COMFORT Respecting our Commitments, Consistent Performance over the years of Timely Delivery & Quality Consistency 35#37Growth Strategy 36#38Personal & Home Care: High Entry Barrier Businesses Responsible Care OUR COMMITMENT TO SUSTAINABILITY Process Product Chemical Engineering & inhouse project execution Wide spectrum of ingredients for Consumer categories / needs Quality Systems Customers Customer Centric Integrated solutions for the HPC FMCG Industry Superior Quality & Customised Products Meeting pre-qualifications of the Product Stringent quality benchmarks and certification Consumer preferences & trend Innovation & Consumer Benefit Direct Customer engagement with 1,400+ covering R&D and manufacturing 4 Galaxy Global Supplier to Global Brands 37#39Responsible Care OUR COMMITMENT TO SUSTAINABILITY Our Growth Vision Sales Optimization R&D and Innovation Customer Wallet share Market Strategy Profitability PROFIT 4 Galaxy Global Supplier to Global Brands Improve Financial Increased focus on high margin products in both the categories Continue to focus on R&D and Product Innovation as a part of "Consumer to Chemistry Approach” Increase Wallet Share with Existing Customers and Continued Focus to Expand Customer Base Mutually Complimentary Two-pronged Strategy to drive growth in both Emerging and Matured Market Performance through Sales Optimization, Operational Efficiencies & Functional Excellence 38#40Financial Performance 39#41Managing Volatility in Raw Material Prices and Currency... 3,000 2,600 2,200 1,800 1,400 1,000 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Fatty Alcohol Prices (USD/MT) LA Price Q3FY21 Q4FY21 Q1FY22 Q2FY22 Responsible Care OUR COMMITMENT TO SUSTAINABILITY Source: Market Prices - ICIS - LOR LA Price Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 INR/USD Prices USDINR 84.00 80.00 76.00 72.00 68.00 4 Galaxy Global Supplier to Global Brands ... Source: RBI Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 USDINR through Robust Risk Management Practices Q4FY22 Q1FY23 Q2FY23 Q3FY23 40 40#42Our Performance Highlights Responsible Care OUR COMMITMENT TO SUSTAINABILITY Revenue (Rs. In Crs) +13% 3,698 2,768 2,795 2,444 2,602 2,172 1,807 EBITDA (Rs. In Crs) +10% 460 413 358 375 282 298 238 PAT (Rs. In Crs) 4 Galaxy Global Supplier to Global Brands +17% 302 263 230 191 148 158 101 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* EBITDA per tonne Total Volume Growth (MT) +3% +7% 19,465 15,017 15,889 16,676 16,716 17,641 2,14,711 2,24,237 2,36,164 2,34,218 15,086 1,97,429 1,77,479 1,58,492 FY16 FY17* FY18* FY19* FY20* FY21* FY22* *As per Ind AS rest as per Indian GAAP ^Includes other Income FY16 FY17* FY18* FY19* FY20* FY21* FY22* 41#43Our Financial Strength Responsible Care OUR COMMITMENT TO SUSTAINABILITY Debt/Equity (x) 0.9 0.7 0.5 0.3 0.4 0.2 0.2 Return on Equity (%) 4 Galaxy Global Supplier to Global Brands 28.8% 25.2% 24.4% 23.9% 24.7% 25.5% 18.3% FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* Cash Flow from Operating Activities (Rs in Crs) 170 144 111 365 316 283 Return on Capital Employed (%) 26.8% 25.2% 25.2% 23.9% 23.5% 22.6% 19.3% 5 FY16 FY17* FY18* FY19* FY20* FY21* FY22* FY16 FY17* FY18* FY19* FY20* FY21* FY22* *As per Ind AS rest as per Indian GAAP 42#44& Responsible Care OUR COMMITMENT TO SUSTAINABILITY 4 Galaxy Global Supplier to Global Brands Thank You Company: Galaxy Global Supplier to Global Brands CIN No: L39877MH1986PLC039877 Mr. Paritosh Srivastava Email: [email protected] www.galaxysurfactants.com Investor Relations Advisors : SGA Strategic Growth Advisors CIN U74140MH2010PTC204285 Mr. Rahul Agarwal / Mr. Mandar Chavan [email protected]/ [email protected] +91 98214 38864 / +91 96993 82195 www.sgapl.net 43