#1Gujarat Fluorochemicals Limited Investor Presentation Q4FY23 TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY#2Earnings Update Q4FY23 Financial Trend Company Overview Core Competencies TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY 2#3Business Analytics Business Analytics 100.000 2 5 5 5 5 5 5 5 5 m TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY Sales Percent Business Strate Sales 1 Sales 3 2365 Business Analy Earnings Update Q4FY23 33% 27% 25% getulle 33% 25% P 3#4Q4FY23 Highlights TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY Consolidated Revenue for FY23 was Rs.5685 Cr and for Q4FY23 was Rs. 1471 Cr up by 44% & 37% respectively on a YoY basis. ➤ Consolidated EBIDTA for FY23 was Rs.2047 Cr and for Q4FY23 was Rs. 529 Cr up by 71% & 60% respectively on a YoY basis. ➤ The EBIDTA margins for FY23 and for Q4FY23 were 36%. ➤ Consolidated PAT for FY23 was Rs. 1323 Cr and for Q4FY23 was Rs. 332 Cr up by 71% & 52% respectively on a YoY basis. ROCE & ROE improved to 34.07% & 27.14% for FY23 from 24.46% & 20.1% for FY22 respectively. 4#5Consolidated Revenue from Operations GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY 1,418 1,471 4% 1,074 37% 1,471 3,954 44% 5,685 Q3FY23 Q4FY23 Q4FY22 Q4FY23 FY22 FY23 Figures in Rs. Cr LO#6Consolidated EBITDA & EBIDTA Margin GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY 36% 37% 36% 36% 30% 2,047 31% 523 529 529 1% 331 60% 1,198 71% Q3FY23 Q4FY23 Q4FY22 EBITDA -EBITDA % EBITDA Q4FY23 EBITDA % FY22 EBITDA FY23 EBITDA % Figures in Rs. Cr CO 6#7Consolidated PAT & PAT Margin GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY 23% 23% 23% 23% 20% 20% 1,323 331 332 332 219 52% Q3FY23 Q4FY23 Q4FY22 Q4FY23 PAT PAT % PAT PAT % Figures in Rs. Cr 71% 775 FY22 FY23 PAT PAT % PAT excludes Income Tax pertaining to earlier years 7#8Revenue Business Vertical - Bulk Chemicals 285 Q3FY23 260 Q4FY22 Figures in Rs. Cr 9% 17% 237 TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company Q4FY23 Performance and Outlook - Bulk Chemicals Plants running at full capacity during the quarter. Bulk Chemicals prices corrected during the quarter as anticipated and are expected to remain subdued. 237 Q4FY23 00 8#9Revenue Business Vertical - Fluorochemicals 349 36% 476 Q3FY23 Q4FY23 135 Q4FY22 254% Figures in Rs. Cr 476 Q4FY23 TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BETOND INFINITY Performance and Outlook - Fluorochemicals Volumes and Prices improved over the previous quarter. Refrigerant demand appears to be subdued during Q1FY24. New fluorochemicals plants are gradually ramping up production and expected to contribute to increased revenues in the upcoming quarters. 9#10Revenue Business Vertical - Fluoropolymers 763 ↓ 5% 723 Q3FY23 Q4FY23 634 Q4FY22 14% Figures in Rs. Cr 723 Q4FY23 TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY Performance and Outlook - Fluoropolymer Volumes remained stable during the quarter however the prices have corrected marginally. There are planned shutdowns of some of the plants during Q1FY24. In addition to de-bottlenecking of PTFE capacity, creation of additional capacities for New fluoropolymers is on course. The demand fundamentals for fluoropolymers continues to be robust because of growing demand from new emerging sectors. 10#11GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY 2023 Financial Trend 2017 2018 2019 2020 2021 +587 2022 +1.53 +0.68 +1.75 11#12Annual Revenue, EBIDTA and PAT Trend 5685 6000 2,047 5000 3954 4000 3403 3000 2606 2651 1954 2000 1344 1302 1000 2000 2282 1,198 36% 638 553 30% 24% 21% 1262 1349 0 FY 20 FY 21 FY 22 FY23 FY 20 FY 21 FY 22 FY23 Domestic Revenue Export Revenue EBIDTA EBIDTA % Figures in Rs. Cr 1,323 775 23% 355 20% 84 13% 3% FY 20 FY 21 FY 22 FY23 IPAT -PAT % TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY * PAT excluding exceptional items & earlier years taxation 12#13ROCE, ROE, Debt-Equity & Working Capital Trend TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY 11.92% FY 21 0.33 FY 21 ROCE 24.46% FY 22 Net Debt Equity Ratio 34.07% 9.87% FY 23 FY 21 155 0.26 0.23 RoE 20.10% FY 22 Working Capital Days 27.14% FY 23 128 120 FY 21 FY 22 FY 23 FY 22 FY 23 * Excluding one offs and extraordinary income / loss 13#14Capex FY 2022 Rs 660 Cr FY 2023 Rs 1349 Cr FY 2024 Rs. 1500 Cr TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY GFL is currently investing / has planned capex towards expanding its capacities for Fluoropolymers, Refrigerant Gases and Battery Chemicals. 14#15COMPANY OVERVIEW GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY 15#16INOX GFL GROUP TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY The INOXGFL Group with a legacy of more than 90 years is one of the largest business Groups in India. The Group is a forerunner in diversified business segments comprising specialty chemicals, fluoropolymers, gases, wind turbines and renewables. The Group currently with 3 listed entities has a market capitalization ~ 5 bn USD. Chemical Business INOXGFL BEYOND GROUP INFINITY Renewable Energy Business GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM • Gujarat Fluorochemicals Ltd, leading Indian Chemicals Company. Business verticals: Fluoropolymers, Fluorospecialities & Chemicals. • Largest PTFE / fluoropolymer manufacturer in India. • Developing products / grades catering to new age businesses viz. EV- Batteries, Solar Panels & Hydrogen Fuel Cells. INOX WIND Energizing INDIA INOXGreen ENERGY SERVICES LIMITED Inox Wind Energy Ltd. • Inox Wind Ltd is a fully integrated player in the wind energy market and provides end-to-end turnkey solutions. INOX Green Energy Services Limited is India's leading wind O&M services player with more than 10 years of operating history. Inox Wind Energy Ltd is the holding company of wind business. 16#17Business Verticals BULK CHEMICALS 30 years of expertise in Fluorine Chemistry Established player in Fluoropolymers, Specialty Chemicals, Refrigerants & Bulk Chemicals TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY FLUOROCHEMICALS Three manufacturing facilities in India, Fluorspar mine in Morocco, offices and warehouses in Europe and USA FLUOROPOLYMERS NEW AGE INDUSTRY Only Fluoropolymer producer in India and amongst the top few globally. Major supplier of Fluoropolymers to Europe and USA Foray into New Age Business - Chemicals & Fluoropolymers for EV- Batteries, Solar Panels & Hydrogen Fuel Cells 17#18Bulk Chemicals Vertical PRODUCTS CAUSTIC SODA CHLOROFORM APPLICATIONS • Textiles ⚫ Soaps & Detergents • Alumina ⚫ Feedstock for Refrigerant Gas R-22 • Solvent - Pharma Major producer of Chloroform and MDC. METHYLENE DI CHLORIDE CTC TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY • Pharma API • Foam manufacturing Agri-chem & Pharma Formulation • Pesticides • Agricultural Chemicals • Plastics • Resins 18#19Fluorochemicals Vertical PRODUCTS HF BASED APPLICATIONS • Agrochemical majorly Insecticides, Herbicides & Fungicides • Plant Growth Regulators TFE BASED KF BASED TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY REFRIGERANTS Pharmaceutical Intermediates, Agrochemical Pesticide & Intermediates • Pharmaceutical Intermediates, Air-conditioners • Agrochemical Pesticide & Intermediates GFL has been developing its value added product portfolio based on carbon, fluorine, nitrogen, hydrogen and oxygen. These products contribute significantly in the field of agro-chemicals, pharmaceuticals, EV battery chemicals and several more. Entry barriers Technical know-how, process safety, raw-material availability and product validation. ➤ GFL with its integrated value chains starting from basic raw materials offers a host of building blocks for these Specialty Chemicals. ➤ Largest R-22 producer from India ➤ Other Refrigerant gases in the portfolio includes R125, R410 amongst others. 19#20Fluoropolymers Vertical GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM FKM • Wire & Cable • Automotive • Defense • Chemicals • Refineries • Semiconductors • Aviation An INOXGFL Group Company PPA BEYOND INFINITY • Improve Surface Finish & Gloss for LLDPE • HDPE & PP Films Processing • Food & Pharma . • Partitioning Agent PRODUCTS APPLICATIONS PTFE • Oil & Gas • Pharma & CPI • Food • Automotive • Aero-space & Defense • Electricals • Electronics & Semi- conductors • Cookware • Construction & Mechanical Parts MICRO POWDERS Printing Inks • Engineering Plastics • Coatings • Industrial Finishes PFA • Semi-conductors • Aero-space Chemical Processing Corrosion Resistant Fluid Transfer • Paints • Elastomers . Oils & Greases • Wire & Cables • Telecom PVDF ⚫ Chemical Processing • Electronics • Architecture • Pharma EV Batteries ⚫ Solar Panels • Water Treatment Membranes • Oil & Gas FEP • Aerospace • Telecom • Chemical Entry barriers: Technical know-how, process safety, raw-material availability, capex intensive. Customer validation, approvals and qualifications, a time consuming & painstaking process. ➤ Huge growth potential: ➤ 5G, EV Battery, Solar Panel, Hydrogen Fuel Cells, Semi-conductors, Internet of Things, Clean Environment. Fluoropolymers have unique set of properties with no technically viable substitutes which can impart the same set of properties and performance: Fire, Weather, Temperature, Wear & Friction Resistant / Non-Wetting / Non-Stick / Dielectric Strength / Durability & Long life. 20 20#21New Age Industry Vertical APPLICATIONS PRODUCTS ELECTRIC VEHICLES SOLAR PANELS PVDF Electrode Binders ⚫ PVDF Film ⚫ Back-sheet • Battery Chemicals • LiPF6 • Additives • Electrolyte Formulations GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company HYDROGEN FUEL CELLS / ELECTROLYZERS • Fluoropolymers(FKM, PTFE, FEP) • Membranes • Charging Accessories GFL has developed technology and products to participate in each of these industries having huge potential and offering higher margins. Entry barriers: Technology, product development, stringent quality standards, buyer qualification, gestation period and a capex intensive integrated value chain. 21#22New Age Vertical-Electric Vehicle Batteries TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY APPLICATIONS PRODUCTS ELECTRIC VEHICLES BATTERIES ⚫ PVDF Electrode Binders • Battery Chemicals • LiPF6 . • Additives • Electrolyte Formulations Battery demand 2030 for EVs, energy storage and consumer electronics is estimated at 2633 GWH with EV battery chain providing revenue opportunities of 300 Billion US$ by 2030. (Source: World Economic Forum, Mckinsey Analysis dated October 2019). Almost a dozen companies are planning to set up EV Battery manufacturing plants in India over the next few years, in line with the Government push to make India a significant global manufacturer of EV vehicles. GFL is in the process of setting up an integrated battery chemicals complex. In addition, GFL has developed suitable PVDF grades for cathode binder application. This initiative will require significant capex in the next few years and will ensure a robust growth in revenues and profits. DISCHARGE CATHODE (+) ALUMINIUM CURRENT COLLECTOR ELECTRON 00000 LITHIUM-ION BATTERY ELECTROLYTE Li PVDF BINDER LI-METAL OXIDES 00 00 CATHODE (+) ELECTROLYTE ANODE (-) COPPER CURRENT COLLECTOR ALUMINIUM CURRENT COLLECTOR LI-METAL CARBON LITHIUM ION PVDF SEPARATOR ELECTRON Li CHARGE ANODE (-) COPPER CURRENT COLLECTOR LI-METAL CARBON PVDF BINDER LITHIUM ION PVDF SEPARATOR LI-METAL OXIDES 22 22#23New Age Vertical-Solar Panels TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY APPLICATIONS PRODUCTS SOLAR PANELS PVDF Film • Back-sheet Under the Solar Mission, to reduce both the carbon emissions and the dependance on imports of oil, the Indian Government has announced a very ambitious target of achieving 450 GW of renewable energy by 2030. Solar panels are the heart of solar power plants and these contain back-sheet based on PVDF film. GFL is setting up India's first PVDF solar film project which will be commissioned in the next financial year. With our own integrated PVDF manufacturing facilities, this plant will be ideally suited to cater to both the domestic and international markets. 6 1 Al Frame �Glass Solar Cells Connecting ribbons Back Sheet - PVF/PVDF ◆ Junction Box �EVA Sheet Solar Panel 23 23#24New Age Vertical-Hydrogen Fuel Cells/ Electrolyzers TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOX GFL Group Company BEYOND INFINITY APPLICATIONS PRODUCTS HYDROGEN FUEL CELLS / ELECTROLYZERS Fluoropolymers (FKM, PTFE, FEP) • Membranes • Charging Accessories Green hydrogen has the potential to decarbonise industry, transport, energy and heating leading to significant emission reductions. There are around 200 hydrogen fuel cell projects currently announced in Europe alone, with investments focussed across multiple industries, from transport to heavy industry. (Source: Hydrogen Council, Europe). In India, major business houses have already announced huge capital outlay in the hydrogen sector. Electrolysers enable the transformation of renewable energy such as wind and solar power into green hydrogen. Fluoropolymers are integral to the functioning of Electrolysers. In addition, fluoropolymer based proton exchange membranes (PEM) form the heart of fuel cells and electrolysers. GFL with its rich experience and a portfolio of majorly Fluoropolymers is well equipped to cater to the Fluoropolymers required for the hydrogen electrolysers, fuel cells and charging stations. GFL has also taken up the project to indigenously develop and produce the PEM membranes. GFL expects this initiative to offer a sustained business growth over the foreseeable future. POLYMER ELECTROLYTE MEMBRANE (PEM) FUEL CELL FLOW OF CURRENT GAS DIFFUSION e LAYER 02 FUEL CELL H₂O H2 GAS DIFFUSION LAYER H2 CATHODE (+) ANODE (-) POLYMER ELECTROLYTE MEMBRANE (PEM) 24 24#25TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY capability service expertise core specialty skills competency knowledge quality ability advantage differeiator 45 25#26GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM Core Competencies Integrated Plant Operations Manufacturing Capabilities Global Presence An INOXGFL Group Company BEYOND INFINITY 26 26#27Integrated Operations Natural CPP Power Salt Gas / Coal Fluorspar CAUSTIC-CHLORINE Chlorine Methanol CHLOROMETHANES H₂SO 4 Chloroform AHF R-22 VCM HFP ↓ * VDC R142b VDF PVDF FKM PPA * Under Implementation FEP TFE PFA PTFE Micropowders Suspension PTFE Virgin / Modified GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY Emulsion PTFE Virgin / Modified GFL's vertically integrated facility makes it one of the most reliable producers, of a wide range Fluoropolymers, globally. of Integration play helps GFL to maximise value addition. 27#28Manufacturing Facilities RANJIT NAGAR, GUJARAT, INDIA DAHEJ, GUJARAT, INDIA TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company JOLVA, GUJARAT, INDIA BEYOND INFINITY Specialty Chemicals & Refrigerants Commissioned in 1989 Largest Refrigerant Capacity in India ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified Fluoropolymers, Specialty & Bulk Chemicals Commissioned in 2007 Largest Fluoropolymer Plant in India Vertically Integrated Plant ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified Fluoropolymers, Specialty & New Age Chemicals Under Phased Commissioning 28#29Research & Development Enables customised solutions and develop sustainable technology Collaborates with renowned educational and research institutes Equipped with team of highly efficient researchers, scientists and product specialists, state of the art equipment including application development laboratories DST approved Fluoropolymers Research and Application development centre GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company BEYOND INFINITY 29 29#30Sustainability Awards & Certification asra Asia Sustainability Reporting Awards 2020 Asia's Best Sustainability Report (First Timel GOLD GUJARAT FLUOROCHEMICALS LIMITED PRESENTED ON PRE CAN CSRWorks Thought Leadership Rajesh Chara TO APS SGUK www.CAM.COM/ ecovadis GUJARAT FLUOROCHIMICALS LTD (GROUP) Gold medal 2021 ecovadis CERTIFICATIONS Health - Safety - Environment ISO 14001: 2015 ISO 9001:2015 ISO 45001: 2018 Ethics ISO 37001: 2016 ISO/IEC 27001:2013 SA8000:2014 TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY Social Responsibility We have aligned all our Internal & Supply chain processes as per the following standards ISO 26000 2010 ISO 20400 2017 30 30#31Regulatory Compliance ROHS ROHS - Restriction of Hazardous Substances MECHA EUROPEAN CHEMICALS AGENCY USC US Pharmacopeial Convention USP Class VI - United States Pharmacopeia - SVHC Substances of Very High Concern 3A - Sanitary standards for design and fabrication of equipment FDA FDA - Food and Drug Administration R 15-2004-2011 EC 1935/2004 - European Commission GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM An INOXGFL Group Company gatonation A REACH BEYOND INFINITY REACH - Registration, Evaluation, Authorization and Restriction of Chemicals R 2004 C-10/201 EC 10/2011 - European Commission WRAS WATER REGULATIONS ADVISORY SCHEME WRAS - Water Regulation Advisory Scheme 31#32GFD GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY TM For further queries: Vibhu Agarwal Head Investor Relations e-mail: [email protected] Manoj Agrawal Chief Financial Officer e-mail: [email protected] Bhavin Desai Company Secretary e-mail: [email protected] An INOXGFL Group Company BEYOND INFINITY 32 32#33Thank You TM GER™ GUJARAT FLUOROCHEMICALS VALUE THROUGH GREEN CHEMISTRY An INOXGFL Group Company BEYOND INFINITY This presentation and the following discussion may contain "forward looking statements" by Gujarat Fluorochemicals Limited ("GFCL" or "the Company") that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of GFCL about the business, industry and markets in which GFCL operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond GFCL's control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of GFCL. In particular, such statements should not be regarded as a projection of future performance of GFCL. It should be noted that the actual performance or achievements of GFCL may vary significantly from such statements. Accordingly, this presentation is subject to disclaimer and qualified in its entirely, by assumptions and qualifications and therefore, the readers are cautioned not to place undue reliance on forward looking statements as a number of factors could cause assumptions, actual future results and events do differs materially from those expressed in the forward looking statements. 33