#1H HERANBA INDUSTRIES LIMITED A Govt. Recognised Export House INVESTOR Presentation NOVEMBER 2021 heranba.co.in#2Safe Harbor This presentation and the accompanying slides (the "Presentation"), which have been prepared by Heranba Industries 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. heranba.co.in 2#3CONTENTS 01 02 03 04 05 COMPANY OVERVIEW SLIDE 04 MANAGEMENT TEAM SLIDE 11 QUARTERLY PERFORMANCE SLIDE 14 FINANCIAL PERFORMANCE SLIDE 18 STRATEGY FOR GROWTH SLIDE 23 H40841#401 | COMPANY Overview HERANBA AT GLANCE SLIDE 05 OUR JOURNEY SLIDE 06 VALUE CHAIN SLIDE 07 INTERMEDIARIES SLIDE 08 TECHNICALS SLIDE 09 FORMULATIONS SLIDE 10#5HERANBA at a Glance heranba.co.in 3 Manufacturing Facilities 60+ Countries Presence 000 πPPP 650+ Employees (as of FY21) $ 77.70% Revenue from Institutional customers** (as of H1 FY22) 9400+ Dealers across India JAAA 35% Revenue from Exports as % of sales (as of H1 FY22) Approx. 25% Revenue from Top 10 customers (as of H1 FY22) 32.38% ROE# (as of H1 FY22) **Institutional Customers includes Technical Exports, Technical Domestic, Branded Formulation and Public Health Clients | #ROE = Return on Equity 5#6Our Journey 1996 CMAC ■ Started manufacturing the Intermediate CMAC 2006 2020 2021 BRANDED FORMULATIONS ■ Forward Integrated into Branded Formulations through its own distribution network EXPORTS Exported Technicals and Formulations to more than 60 countries in the international markets INITIAL PUBLIC OFFERING Listed on BSE & NSE 2005 7 2014 2002 TECHNICALS Forward integrated into the manufacturing of Technicals, primarily made from the raw material CMAC and other Intermediates FORMULATIONS Forward integrated into the manufacturing of Formulations developed from Company's synthetic pyrethroids product portfolio of cypermethrin, alphacypermethrin, deltamethrin, permitherin, lambda cyhalothrin ISO CERTIFICATE Receipt of ISO 9001:2015 certification in respect of production & dispatch of agro Formulations and packing & dispatch of agro based herbicides heranba.co.in AAR 2019 TURNOVER ■ Achieved Turnover of 1000 Crores 60#7Value Chain Value Chain Manufacturing Process HIL manufactures a wide range of products, and each product has its own unique manufacturing process The Company specializes in the manufacturing processes that mainly include chemical reactions of: HIL over the years, has scaled up the manufacturing of Intermediates, Technicals and Ammonolysis Hydrolysis Favorski Reaction Methoxylation Halogenation Esterification Isomerisation Friedel Crafts Cyclisation Cyanation Condensation Formulations which form part of the entire value chain of the agrochemicals industry The process of manufacturing can be classified broadly into three stages Reaction Purification Final Blending and Packing heranba.co.in 7#8Intermediaries Intermediates Cypermethric Acid Chloride (CMAC) High CIS CMA High CIS CMAC High Trans CMA High Trans CMAC Bromobenzenes Metaphenoxy Benzaldehyde (MPBD) End-use Intermediates manufactured are for Company's own captive consumption for manufacturing various Technicals and Formulations heranba.co.in 8#9Technicals Herbicides ■ Glyphosate Metribuzin ■ Clodinofop Insecticides Cypermethrin Deltamethrin Alpha Cypermethrin Acephate ■ Lambda Cyhalothrin Permethrin Profenophos Temephos Theta Cypermethrin ▪ Thiamethoxam ■ Imidacloprid Technicals heranba.co.in Fungicides ■ Tricyclazole Hexaconazole 9#10Formulations Insecticides Jayam ☐ Progress Plus Param ■ Cypraplus Dyken ■ Mantra ■ Astron Signor Prompt Cypra ■ Heraban Alpha Shakti Henoxa Herbicides Glory Glory 71 (IN MILLION) ■ Chakde ■ Shera ■ Heraquat Zinta Pendant ■ Atria Formulations Fungicides " Macamba Sulphy ■Mask Propizole Vintage Exort 2,479.56 4,971.39 FY18 Mandy Tulip Silicon Plus Revenue from Technical and Formulations 7,280.28 2,764.16 heranba.co.in #Technicals includes Technical Domestic and Technical Exports | Formulations includes Branded Formulations, Formulation Exports and Public Health 6,480.94 3,032.80 8,569.74 3,616.73 4,724.40 2,324.01 FY19 FY20 FY21 HY FY22 Technicals# Formulations* 10#11ABOUT PROMOTERS SLIDE 12 LEADERSHIP TEAM SLIDE 13 02 MANAGEMENT Team#12Experienced Promoters with Domain Knowledge Promoters having a cumulative experience of more than six decades Mr. Sadashiv K. Shetty CHAIRMAN AND EXECUTIVE DIRECTOR Mr. Raghuram K. Shetty MANAGING DIRECTOR Holds a bachelor's (physics and chemistry) and master's (chemistry) degree in science from University of Mysore Has experience of more than three decades in agrochemicals industry Has been on Board since September, 1994 and is responsible for the overall supervision, direction and management of the Company He has been instrumental in new products development and addition of capacities Has previously worked with Sudarshan Chemical Limited, Gharda Chemical Limited, Hoechst Pharmaceuticals and Nirlon Limited Holds a bachelor's degree in economics from University of Mysore Subsequently, pursued government commercial diploma from the Department of Education, Bureau of Government Examinations, Maharashtra and completed diploma in export and import management from the India International Trade Centre, Mumbai Has experience of more than three decades in agrochemicals industry Has been on Board since September, 1994 and is fully involved in day-to-day affairs of the Company He has been instrumental in developing export business for the Company heranba.co.in 12#13Management Expertise Mr. Rajkumar Bafna CHIEF FINANCIAL OFFICER Mr. Rajesh Ohri VICE PRESIDENT - PROCUREMENT & BUSINESS DEVELOPMENT Mr. Mopidevi V. Rao HEAD OF R&D DIVISION Holds a bachelor's degree in commerce from University of Bombay and is an associate member of the Institute of Chartered Accountants of India He has 18+ years of industry experience in the field of accounts, corporate finance and management information systems Oversees overall finance and accounting, risk management and audit compliance in the Company Holds a bachelor's degree in engineering (production) from Shivaji University, Kolhapur He has several years of experience in field of supply chain management and procurement of raw materials Looks after procurement department along with business development function of the Company Holds a bachelor's and master's degree (organic chemistry) degree in science from Andhra University He has also done Ph.D. in chemistry from GITAM University He has experience of more than two decades in the field of agro formulations of insecticides, fungicides and herbicides Looks after development of new products & has control over the R&D activities in the Company Has previously been associated with Insecticides (India) Limited, Nagarjuna Agrichem Limited and Solaris Chemtech Limited heranba.co.in 13#1403 | QUARTERLY Performance FINANCIAL HIGHLIGHTS SLIDE 15 KEY RATIOS SLIDE 16 FINANCIAL SUMMARY SLIDE 17#15Q1FY22 Financial Highlights Revenue from Operations at *3534.35 million in Q2FY22 as compared to 3491.79 million in Q2FY21-growth of 1.22% Y-o-Y and growth of 0.58% Q-o-Q. EBITDA (incl. other income) at *663.50 million in Q2FY22 as compared to *565.78 million in Q2FY21 growth of 17.27% Y-o- Y and de-growth of 3.97% Q-o-Q. EBITDA (incl. other income) Margins were at 18.77% in Q2FY22 as compared to 16.20% in Q2FY21-growth of approx. 257bps Y-o-Y and de-growth of 89bps Q-o-Q. Profit After Tax at 456.15 million in Q2FY22 as compared to *377.28 million in Q2FY21 - growth of 20.90% Y-o-Y and de- growth of 3.74% Q-o-Q. heranba.co.in 15#16Quarterly Performance Net Revenue from Operations (IN MILLION) 3491.79 3514.06 3534.35 III (IN MILLION & %) EBITDA (incl. Other Rev) and EBITDA Margin PAT and PAT Margin 565.78 16.20% Q2FY21 Q1FY22 Q2FY22 ■Revenue from Operations Q2FY21 heranba.co.in EBITDA 19.66% 663.5 18.77% (IN MILLION & %) 456.15 12.91% Business Mix (IN %) 10.11% 8.89% 30.08% 32.07% 25.66% 23.19% 690.91 377.28 473.87 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 32.16% Q2FY21 37.83% Q2FY22 -EBITDA Margin PAT -PAT Margin Export Formulations Export Technicals Domestic Formulations Domestic Technicals NOTE: Domestic Formulations includes Branded Formulations and Public Health 16#17Profit & Loss Summary (Quarterly) PARTICULARS Revenue from Operations Other Income Total Revenue Total Expenses Profit Before Tax Total Tax Expense Profit After Tax EPS Basic (*) EPS Diluted (₹) Q2FY21 Q1FY22 (IN MILLION) Q2FY22 3491.79 3,514.06 3534.35 7.53 42.73 51.7 3499.32 3,556.79 3586.05 2986.59 2913.69 2971.97 512.73 643.10 614.08 135.45 169.23 157.93 377.28 473.87 456.15 9.66 11.84 11.4 9.66 11.84 11.4 EBITDA (incl. Other income) 565.78 690.91 663.50 EBITDA (incl. Other income) Margin 16.20% 19.66% 18.77% heranba.co.in 17#1804 FINANCIAL Performance KEY RATIOS SLIDE 19 FINANCIAL SUMMARY SLIDE 21#19heranba.co.in 10044.44 9513.74 1388.07 7048.41 1458.82 2283.69 KEY Ratios Net Revenue from Operations (IN MILLION) 12186.47 (IN MILLION & %) 1354.41 19.22% FY19 FY20 FY21 H1 FY22 FY19 FY20 FY21 H1 FY22 FY19 FY20 FY21 H1 FY22 FY19 EBITDA - EBITDA Margin PAT PAT Margin 754.02 976.57 1542.25 930.01 EBITDA (incl. Other Rev) and EBITDA Margin PAT and PAT Margin 2281.76 289.09 (IN MILLION & %) 3208.49 398.85 5281.34 FY20 FY21 H1 FY22 Equity Debt/(Cash) 19 6,208.45 13.19% (IN MILLION) (345.01) Net Debt/(Cash) and Equity (129.19)#20heranba.co.in FY19 (IN %) 39.48% 36.48% 38.79% 26.95% Business Mix Diversified customers base across geographies helps to mitigate risks and benefit from expected growth in agrochemical market Revenue from Operations Revenue from Exports 8.05% 39.95% 12.83% 9.48% 8.87% 33.00% 31.64% 31.53% 25.10% 20.81% 18.04% 19.05% Branded Formulations Formulations Exports FY20 FY21 H1 FY22 FY19 Technical Domestic Technical Exports (% OF SALES) 51.04% 48.96% 50.69% 49.31% 52.34% 47.66% 65.01% 34.99% Export Revenue Split: Technical and Formulations Export 19.36% 80.64% 26.02% 73.98% 18.61% 81.39% 22.99% 77.01% FY20 Domestic FY21 H1 FY22 Exports FY19 FY20 FY21 H1 FY22 ■Technical Exports Formulations Exports 20#21Profit & Loss Summary PARTICULARS Revenue from Operations Other Income Total Revenue Total Expenses Profit Before Tax Total Tax Expense Profit After Tax EPS Basic (*) EPS Diluted (₹) FY19 FY20 FY21 (IN MILLION) H1 FY22 10,044.44 73.94 10,118.38 9,513.74 165.32 9,679.06 12,186.47 7,048.41 70.30 94.43 12,256.77 7,142.84 8,897.18 8,390.64 10,173.92 5,885.66 1,221.2 1,288.42 2,082.85 1,257.18 467.18 311.85 540.59 327.17 754.02 976.57 1,542.26 930.01 19.31 25.00 39.41 23.24 19.31 25.00 39.41 23.24 EBITDA (incl. Other Income) 1,388.07 1,458.82 2,283.69 1,354.41 EBITDA (incl. Other Income) Margin 13.82% 15.33% 18.74% 19.22% heranba.co.in 21#22Balance Sheet (1/2) PARTICULARS Non-Current Assets Property, plant and equipment Capital work-in-progress Financial Assets: (i) Investments (ii) Other Financial Assets Current tax assets (Net) FY19 FY20 FY21 (IN MILLION) H1 FY22 511.39 954.41 1,334.35 159.70 377.72 96.95 1,388.88 209.76 0.24 37.31 100.98 20.86 71 84.27 241.71 74.12 1.48 10.20 33.00 Other non-current assets 344.58 80.66 97.01 231.28 Total Non-Current Assets (1) 1,088.39 1,534.37 1,881.20 1,957.90 Current Assets Inventories 1,138.94 1,455.18 1,659.86 2,468.08 Financial Assets: (i) Trade Receivables 2,532.72 2,584.67 3,417.62 4,394.76 (ii) Cash and cash equivalents 209.65 31.94 847.80 585.83 (iii) Loans 0 8.95 (iv) Other financial assets 15.4 17.17 19.97 Other current assets Total Current Assets (II) Total Assets (I + II) 619.33 615.35 4,516.04 4,713.26 606.68 6,551.93 20.79 463.33 7,932.79 5,604.43 6,247.63 8,433.13 9,890.69 heranba.co.in 22#23Balance Sheet (2/2) PARTICULARS Equity and liabilities Equity Equity share capital Other equity Total Equity Liabilities Non-Current Liabilities Financial Liabilities (i) Borrowings (ii) Other Financial Liabilities Provisions FY19 FY20 FY21 (IN MILLION) H1 FY22 390.56 390.56 400.13 1891.2 2281.76 2817.93 4881.21 3208.49 5281.34 400.13 5808.32 6208.45 57.27 61.46 66.41 69.6 4.22 6.49 22.43 31.7 Other Non-current liabilities 2.28 11.71 10.71 Deferred Tax balances (net) 41.27 16.09 Total Non-Current Liabilities (I) 102.76 86.32 100.55 112.01 Current Liabilities Financial Liabilities (i) Borrowings (ii) Trade payables (iii) Other Financial Liabilities Current tax Balances (net) Other current liabilities Provisions 498.74 430.79 502.79 456.64 2352.07 2124.68 1955.82 2428.85 121.89 139.30 283.27 265.01 101.68 37.46 88.37 113.28 96.46 163.19 159.73 230.33 49.07 57.40 61.25 76.12 Total Current Liabilities (II) 3219.91 2952.82 3051.24 3570.23 Total Liabilities (I + II) 3322.67 3039.14 3151.79 3682.24 TOTAL EQUITY AND LIABILITIES 5604.43 6247.63 8433.13 9890.69 heranba.co.in 23 23#24Cashflow Statement PARTICULARS FY19 FY20 FY21 (IN MILLION) H1 FY22 Cash Flow from Operations 877.02 542.11 603.98 -81.77 Cash Flow from Investing Activities -373.79 -520.39 -407.13 -305.24 Cash Flow from financing Activities -411.35 -199.43 619.01 -72.08 Net increase/ (decrease) in cash and cash equivalents 91.88 -177.71 815.86 -459.09 Cash and cash equivalents at beginning of the year 117.77 209.65 31.94 847.80 Cash and cash equivalents at end of the year 209.65 31.94 847.80 388.71 heranba.co.in 24 24#2505 | Strategy for Growth COMPETITIVE STRENGTHS SLIDE 26 BUSINESS STRATEGY SLIDE 27#26Competitive Strengths Experienced Promoters and Management Team Wide range of products across value chain heranba.co.in Diversified Customer Base Product Registration enabling global outreach Exports to more than 60 countries ** Integrated Manufacturing Units Wide Distribution Network 26#27Business Strategy Well positioned to exploit opportunities offered by growth in Agrochemicals. Entering Highly Regulated USA and Europe markets heranba.co.in 0 Strengthening of R&D Facility Enhancing Production Capabilities Enhancing Formulation & Technicals in International Markets Branded Formulations and Public Health 27#28THANK YOU CONTACT US: Investor Relations Kanav Khanna [email protected] Diwakar Pingle [email protected] CORPORATE OFFICE Heranba Industries Ltd. 101/102, Kanchanganga, Factory Lane, Borivali (W), Mumbai - 400 092, India Tel: 91-22-2898 7912/14, 91-22-2898 2133/44, 91-22-2898 4439, 91-22-5070 5050 Email [email protected]