#1Privi Speciality Chemicals Ltd Presentation August 2021#2Content Investor Presentation August 2021 01 Company Overview 02 Industry Overview 03 Business Overview 04 Infrastructure Overview 05 Financial Overview PRIVI SPECIALITY CHEMICALS LIMITED 2#3About Privi PRIVI SPECIALITY CHEMICALS LIMITED Fast growing manufacturer of Aroma Chemicals (specialty chemicals forming key ingredients in formulation of fragrances) Global leaders in key products we manufacture Revenue (Rs lakhs) and EBITDA margin Revenue O-EBITDA% 20.99% 19.33% 17.39% 1,35,047 1,29,652 13.65% 13.80% 1,09,677 で Top Aroma Chemical manufacturer in India Marquee customer base - supplying to top players of Flavours & Fragrance market across globe 60,904 Fully integrated manufacturing facility 81,268 ill Consistently delivering profitable growth to our investors FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Investor Presentation August 2021 5Yr CAGR 21% 3#4Subsidiaries PRIVI PRIV • PRIVI SPECIALITY CHEMICALS LIMITED PRIVI BIOTECHNOLOGIES PVT LTD Fully equipped biotechnology center at Nerul, Navi Mumbai with highly skilled and qualified operational team of 30 odd scientists Research areas in biotechnology including fermentation, enzymology, biotransformation, and chromatography. Technology collaboration with Institute of Chemical Technology (ICT) Jointly working on different biotechnology projects with Department of Biotechnology (DBT), Department of Science & Technology (DST), Indo-German Science & Technology center (IGSTC), Government of India PRIVI ORGANICS USA CORP Incorporated in 2013, based out of New Jersey, USA To identify and utilize opportunities in Privi's target markets, both in North and South America • Strong team of around 10 people Strengthening its position as a market leader through continuous customer engagement and its formal presence in the US market Branch Office and warehouse in Amsterdam, Netherland (Europe) to facilitate customers, widening the scope of Privi products across globe Investor Presentation August 2021 4#5Board of Directors PRIVI SPECIALITY CHEMICALS LIMITED Mr. Mahesh Babani Mr. D. B. Rao Mr. Rajesh Budhrani Mr. Dwarko Khilnani Mr. P. R. Barpande Chairman & Managing Director Investor Presentation August 2021 Executive Director Independent Director Independent Director Independent Director Mr. Anurag Surana Independent Director Mrs. Anuradha Thakur Independent Director 5#6Executive Team HARISH RAHEJA VP-BUSINESS DEVELOPMENT G. MITTAL Sr. VP-COMMERCIAL Investor Presentation August 2021 D. B. RAO EXECUTIVE DIRECTOR NARAYAN IYER CHIEF FINANCIAL OFFICER RAMESH KATHURIA Company Secretary and Compliance Officer MAHESH BABANI CHAIRMAN & MANAGING DIRECTOR RS RAJAN PRESIDENT S. B.PATHARE Exec. VP- OPERATIONS (Mahad) J. MARATHE Sr. VP- MANUFACTURING (Mahad) D. RAGHAVA Sr. VP OPERATIONS & DEVELOPMENT (Jhagadia) PRIVI SPECIALITY CHEMICALS LIMITED SANJEEV PATIL Sr. VP-STRATEGY RAM SURVE VP HUMAN RESOURCE The executive team are all professionally qualified in their domain and possess more than two decades of experience individually 6#7Key Milestones Induction of full time CEO, paving way to professionally managed company Turnover crossed Rs.1 bn. mark 1997 2005 Commenced Exports, First export to Germany Investor Presentation August 2021 PRIVI SPECIALITY CHEMICALS LIMITED Private Equity investment by Standard Charted Longer term contracts - Givaudan, P&G, Henkel Commenced production at Unit-VI Gujarat Turnover crossed Rs 5 bn mark Name change to Privi Organics India Ltd, subsidiary of listed co. Fairchem Speciality Amalgamation and name change to Privi Speciality Chemicals Ltd, listed Independently 2007 2011 Infusion of Private Equity Capital by Avigo 2012 Set up CST, GTO processing facility 2014 2016 2017 2019 2020 Private Equity investment by Fairfax Turnover crossed Rs.10 bn. mark 7#8Content 01 Company Overview 20 02 Industry Overview 03 Business Overview 04 Infrastructure Overview 05 Financial Overview Investor Presentation August 2021 PRIVI SPECIALITY CHEMICALS LIMITED 8#9Industry Overview PRIVI SPECIALITY CHEMICALS LIMITED • • Privi operates in Aroma chemicals (Fragrance Ingredients) market which is a part Flavour and Fragrance (F&F) Industry Global F&F market size is about USD 30.4 Bn Fragrance accounts for about USD 16.1 Bn (53%) of the total F&F market • Within Fragrance, Aroma chemicals market size is about USD 5.5 Bn • • The Aroma chemicals market is expected to grow at an compounded annual growth rate of 5.8% from 2020 to 2027 (value based). Rising importance of personal hygiene and grooming is expected to remain one of the key driver of growth Rapid urbanisation coupled with increased consumer spending has led to augmented demand with fragrance being a prominent factor USD 30.4 Bn Flavour and Fragrance Market Fragrance (53%) Flavours (47%) Fine Fragrance and Functional Fragrance (35%) Aroma chemicals (18%) Investor Presentation August 2021 Source: Grand View Research and Company's internal estimates 6#10Industry Overview PRIVI SPECIALITY CHEMICALS LIMITED • Terpenes & Terpenoids possess effective medicinal properties, such as antiseptic, anti-carcinogen, and anti-microbial properties • Musk chemicals find scope in different applications, such as soap, detergents, cosmetics and personal care, food, and household products. . • COVID 19 has caused change in lifestyle necessitating increased hand washing frequencies, better hygiene in general - including more cleaning of floors, more frequent washing of clothes etc. • • The global perfume market size was valued at USD 32 billion in 2018 and is expected to expand at a CAGR of 3.9% from 2019 to 2025 Increased working-class population in developing economies like China and India is expected to enhance the scope of personal care products including perfumes and deodorants. Musk (13%) Aroma Chemicals Segments Others (16%) 0 Petrochemical based (34%) Terpenes & Terpenoids (37%) Investor Presentation August 2021 Source: Grand View Research and Company's internal estimates 10#11Aroma Chemicals Value Chain PRIVI SPECIALITY CHEMICALS LIMITED Raw Material Source Building Blocks Aroma Chemicals Market Segmentation Formulators FMCG ■Naphthalene Value % Volume % Floral Perfume ■Cresol ■Catechol Petrochemical Styrene ■Isobutene ■Soft Floral ■Floral oriental After Shave ■Fine Fragrances 34% 48% Oriental ■Phenol ■Toluene Alpha Pinene ■Beta Pinene Pine Tree 37% 34% Wood ■Longifolene Derivatives Musk ■Musk 13% ■Lower Esters Others Adipic Acid ■ Others 16% 11% USD 5.5 Bn 4,00,000 Tns Key Players in Each Segment ■Privi Speciality ■IFF ■Millennium (Symrise) = DRT (Firmenich) ■Arizona Privi Speciality ■IFF = DRT (Firmenich) Millennium (Symrise) ■Chinese Companies Soft Oriental ■Oriental Woody Oriental ■Woods Mossy Woods Dry Woods Fresh ■Citrus ■Fruity Green ■Water ■Givaudan ■Firmenich ■Symrise Takasago ■IFF ■Soaps & Creams ■Lotions ■Shampoo ■Hair Oil ■Detergent ■Fabric Softeners ■Bleach Air Fresheners ■Incense Sticks ■Candles ■Toilet Cleaners ■Insect Repellent....and others ■Unilever ■ P&G ■Henkel ■Reckitt Benckiser ■Colgate-Palmolive Investor Presentation August 2021 11#12Content Investor Presentation August 2021 01 Company Overview 02 Industry Overview 03 Business Overview 04 Infrastructure Overview 05 Financial Overview PRIVI SPECIALITY CHEMICALS LIMITED 12#13. • Product Segment PINENE Dihydromyrcenol Amber Fleur Pine Oil Terpineol Terpinen-4-ol PHENOL CITRAL Ortho Tertiary Butyl • Cyclocitral Cyclo Hexyl Acetate • Citronellal • Para Tertiary Butyl Cyclo Hexyl Acetate • Citronellol • Citronellyl Nitrile Timber Touch & Forte PRIVI SPECIALITY CHEMICALS LIMITED SPECIALITY • Damascones • Sandal Products • Ionones • Nimberol In Privi's product portfolio, Pinene segment forms the major part of sales. Approximately 70% of the sales comes from Pinene segment Investor Presentation August 2021 13#14Sales Geography USA Mexico Investor Presentation August 2021 Columb Brazil Export to 30+ Countries UK Netherland Germany France Switzerland Chile Argentina Turkey Greece Israel Pakistan Spain Italy Egyp UAE Russia China Japan Taiwan Hong Kong India B'desh Thailand Singapore Indonesia Australia New Zealand PRIVI SPECIALITY CHEMICALS LIMITED Global Delivery Capabilities Stocking Points ❖ India Rotterdam (Netherland) New Jersey (USA) Distribution Points Singapore (Asia Pacific) Shanghai (Asia Pacific) Grasse (Europe) Milano (Europe) Manchester (Europe) Mexico (LATAM) ❖Brazil (LATAM) SMOI/JIT Geneva (Switzerland) 14#15Key Strengths Leadership position in the world market for products like- DHMOL, Amber fleur, Terpineol, Pine Oil. PRIVI SPECIALITY CHEMICALS LIMITED Constant benchmarking of operations in terms of energy costs and processing yields Ideal balance of entrepreneurship and professional management Scale of operation Management Team Operation Excellence Integrated inhouse developed CST processing for manufacturing key raw material for pine based products Backward Integration KEY STRENGTHS Robust Manufacturing Supply Chain R&D Capabilities Production facilities optimised and operations perfected over decades of experience Global sourcing of Crude Sulphated Turpentine (CST pulp mill waste) and global delivery of finished products. Market Access Established strong relationships with leading F&F and FMCG companies. Have excellent track record towards customer satisfaction Substantial and long term emphasis on R&D with state of the art facilities and well qualified scientists. All process scale up, project implementation is done by in-house teams. Investor Presentation August 2021 15#16Sustainability SUSTAINABLE DEVELOPMENT GOALS NO 1 POVERTY ++ We contribute towards the skill development of the people in the surrounding villages so that they can obtain employment to secure their source of income. 3 6 PRIVI SPECIALITY CHEMICALS LIMITED CLEAN WATER AND SANITATION We provide assistance in the construction and repair of toilets in the surrounding areas & works to create awareness about hygiene 11 SUSTAINABLE CITIES AND COMMUNITIES GOOD HEALTH AND WELL-BEING We focus on improving the health care facilities in the nearby areas by arranging health check-up camps, distributing free medicines, building gymnasiums, spreading health awareness, as well as providing safe drinking water, etc 13 4 QUALITY EDUCATION Investor Presentation August 2021 Augmenting the education system with focus on digital education we focus on digital education at Zila Parishad Schools by providing them the requisite software - 15 CLIMATE ACTION in the remaining efforts one step We believe ahead in of conserving natural resources, recycle & reuse of materials, and creating waste to wealth. We ensure that all our operations, effluents, discharges are properly treated, controlled, and meeting legal norms. We also work on implementing advanced technologies to reduce the emissions LIFE ON LAND We have been planting a large number of trees in our vicinity as Iwell as on land taken on lease specifically for creating natural habitat for the growth of flora and fauna and maintenance of ecological balance. 16#17Sustainability PRIVI SPECIALITY CHEMICALS LIMITED Till 2008 Conventional 2008-11 Effluent reduction at Source 2011-13 Water Recycle & Reuse at U2 2013-15 Implemented Green Process (leading to reduction in water usage) 2015-17 Water Recycle & Reuse across all units 2017-18 Working for Zero effluent water discharge 2018-19 Self reliance in Power 2019-21 Progressing towards Zero Liquid Discharge Effluent treatment Investor Presentation August 2021 17#18Corporate Social Responsibility Education Healthcare PRIVI SPECIALITY CHEMICALS LIMITED Environment • • Facilitating education of school Health children from underprivileged families. Distribution of stationery, syllabus books, and learning materials. Enhancing scholastic performance. • . Setting up toy libraries in Balwadi. • Enriched education through . multimedia and mobile exhibition • check-up camps, blood donation camps and cataract operation camps. Aid and assistance in the area of medical research. Diet and nutritional counselling for expectant and new mothers. Safe drinking water for children and communities. Distribution of clothes, blankets and other necessities to shelter from weather extremities Plantation of trees. Cleaning drives and sanitization practices. Solar lights for school and communities. Conserving the ecosystem. Investor Presentation August 2021 18#19Content Investor Presentation August 2021 01 TO Company Overview 02 Industry Overview 03 Business Overview 04 Infrastructure Overview 05 Financial Overview PRIVI SPECIALITY CHEMICALS LIMITED 19#20Infrastructure OPTIMUM PRODUCTION CAPACITY ➤ CST PROCESSING CAPACITY ➤ TOTAL PLANT AREA ➤ TOTAL REACTION CAPACITY ➤ TOTAL DISTILLATION CAPACITY ➤ BLENDING CAPACITY ➤ STEAM GENERATION - 37,000 MTPA - 36,000 MTPA - 226,500 Sq mt - 500 KL - 900 KL/Day - 500 KL - 78 Tons/Hour ➤ CONNECTED POWER ➤ GENERATOR BACK-UP - 13,400 KVA - 5 085 KVA ➤ EFFLUENT TREATMENT PLANT CAPACITY - 650 M3/Day#21Unit 1 and 3 Investor Presentation August 2021 PRIVI SPECIALITY CHEMICALS LIMITED Unit 1 Amber Fleur Unit 3 Pine oil and Terpineol - उत्पादन हमारा कर्म है। सुरक्षा हमारा धर्म है। Maintenance GR TO 21#22Unit 2 PRIVI SPECIALITY CHEMICALS LIMITED Unit 2 is the largest unit of Privi. Products like DHMOL, Citral based and speciality products are manufactured at this site. It also houses the Crude sulphated turpentine and Gum turpentine processing facility (Single largest refinery globally). Investor Presentation August 2021#23Unit 10 PRIVI SPECIALITY CHEMICALS LIMITED Unit 10 is the newly constructed Supply chain excellence centre. Raw materials and Finished goods are stored here. CARVACROL TRA Total Capacity of 7400 KL RM storage = 1450 pallets = 5800 drums equivalent FG storage = 2200 pallets = 8800 drums equivalent#24Ongoing Projects GALAXMUSK PRIVI SPECIALITY CHEMICALS LIMITED CAMPHOR PRIONYL Capacity -4800 TPA Start April 2022 - Location Jhagadia, Gujarat Capacity 4800 TPA Start April 2022 Location - Mahad, Maharashtra Capacity 120 TPA Start - April 2022 Location - Mahad, Maharashtra Investor Presentation August 2021 24#25Content Investor Presentation August 2021 01 Company Overview 02 Industry Overview 03 Business Overview 04 Infrastructure Overview 05 Financial Overview PRIVI SPECIALITY CHEMICALS LIMITED 25#26Rs Lakhs Financial Highlight Revenue 1,35,047 1,29,652 1,09,677 Rs lakhs 17.4% EBITDA EBITDA 21.0% 28,351 EBITDA% 19,078 19.3% 25,063 Rs lakhs PRIVI SPECIALITY CHEMICALS LIMITED PBT IPBT PBT% 14.3% 12.2% 11.5% 19,263 15,822 12,609 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Investor Presentation August 2021 26#27Financial Highlight Sales breakup - Segment wise Figures in Rs lakhs 9,806 8% 17,099 13% 8,916 7% 1,27,656 91,835 72% Investor Presentation August 2021 PRIVI SPECIALITY CHEMICALS LIMITED Volume breakup - Segment wise Figures in Tons 990 1,636 6% 3% ■ Pinene 3,996 14% Phenol = Citral ■Speciality 29,337 22,715 77% ■ Pinene Phenol = Citral ■Speciality 27#28Financial Highlight Net Debt/Equity 0.88 0.71 0.68 2.19 FY19 (A) FY 20 (A) FY 21 (A) FY19 (A) ROE ROCE 23.96% 16.18% 16.10% 20.34% 16.47% 14.33% Days 149 Net Debt/EBITDA 1.46 FY 20 (A) Cash Conversion Days PRIVI SPECIALITY CHEMICALS LIMITED 2.06 FY 21 (A) 117 118 FY19 (A) FY 20 (A) FY 21 (A) FY19 (A) FY 20 (A) FY 21 (A) Investor Presentation August 2021 28#29Income Statement Investor Presentation August 2021 Figures in Rs lakhs FY 20-21 Description FY 18-19 FY 19-20 Revenue 1,09,117 1,32,411 1,27,656 Other income 560 2,636 1,996 Total Income 1,09,677 1,35,047 1,29,652 Cost of goods sold 66,161 80,313 75,109 Employee benefits expense 5,610 6,503 6,987 Finance cost 2,328 3,411 2,141 Depreciation and amortisation expense 4,141 5,677 7,100 Other expenses 19,734 23,879 24,802 Total Expenses 97,973 1,19,784 1,16,139 Profit before exceptional item & tax 11,704 15,263 13,513 Exceptional income 905 4,000 2,309 Profit before tax 12,609 19,263 15,822 Tax expense 4,961 4,660 4,132 Net Profit for the period 7,648 14,603 11,690 Other comprehensive income /(Loss) 5 63 -58 Total comprehensive Income 7,653 14,666 11,633 PRIVI SPECIALITY CHEMICALS LIMITED 29#30Balance Sheet PRIVI SPECIALITY CHEMICALS LIMITED Figures in Rs lakhs Description ASSETS FY 18-19 FY 19-20 FY 20-21 Description FY 18-19 FY 19-20 FY 20-21 EQUITY AND LIABILITIES Non-current assets Property, plant and equipment Capital Work in Progress Right to use assets Intangible assets EQUITY 37,374 9,378 55,929 56,021 Equity share capital 3,027 17,445 Other equity 870 3,187 3,052 Total equity 1 3,906 3,906 47,304 57,299 68,346 47,305 61,205 72,252 0 701 713 LIABILITIES Intangible assets under development 20 14 Non-current liabilities Financial assets Loans Borrowings 17,254 23,191 33,616 806 817 993 Provisions 960 1,292 1,468 Other financial assets 326 135 93 Deferred tax liabilities (net) 1,652 1,343 1,326 Income tax assets (net) 1,157 1,160 1,157 Total non-current liabilities 19,865 25,826 36,410 Other non-current assets 742 624 4,518 Current Liabilities Total Non-Current Assets 50,651 65,600 84,005 Financial liabilities Current assets i) Borrowings 23,999 25,539 16,433 Inventories 33,023 32,871 34,253 ii) Trade payables 18,385 14,972 16,739 Financial assets 0 105 0 iii) Other financial liabilities 11,162 9,495 10,538 Investments 0 105 0 iv) Lease liabilities 80 156 Trade receivables 29,856 22,890 23,904 Other current liabilities 529 406 431 Cash and cash equivalents 1,624 8,472 1,545 Provisions 94 102 136 Bank balances 671 Other current assets 7,972 360 8,071 429 Current tax liabilities (net) 2,457 743 925 9,885 Total current liabilities 56,626 51,337 45,359 Total current assets 73,145 72,769 70,016 Total Liabilities 76,491 77,164 81,769 TOTAL ASSETS 1,23,797 1,38,369 1,54,021 Total Equity and Liabilities 1,23,797 1,38,369 1,54,021 Investor Presentation August 2021 30#31Cashflow Statement Figures in Rs lakhs PRIVI SPECIALITY CHEMICALS LIMITED Description Profit before tax Depreciation and amortisation Interest expense FY 18-19 FY 19-20 FY 20-21 12,609 19,263 15,822 4,141 5,677 7,100 2,328 3,334 2,093 Other non-cash, non-operating items 303 -1,127 1,317 Taxes paid -2,526 -6,655 -3,968 Cash flow before working capital changes 16,855 20,492 22,364 (Incr) / Decr in inventories -12,674 152 -1,381 (Incr) / Decr in trade receivables -9,777 8,061 -1,671 (Incr) / Decr in loans and advances -3,835 -105 -1,939 (Decr) Incr in trade payables 6,504 -5,087 1,857 (Decr) Incr in other liabilities 1,602 -1,907 -2,020 Cash flow from operating activities -1,324 21,606 17,210 (Purchase) / Sale of fixed assets (net) -15,149 -18,033 -24,278 Other Investing Activities 3,036 476 126 Cash flow from investing activities -12,112 -17,557 -24,152 Proceeds/(Repayment) of borrowings 17,039 7,154 3,033 Other financing activities -3,189 -4,355 -3,017 Cash flow from financing activities 13,850 2,799 15 Net cash inflow / (outflow) 413 6,848 -6,927 Cash and cash equivalents at the beginning of the year 1,210 1,624 8,472 Cash and cash equivalents at the end of the year 1,624 8,472 1,545 Investor Presentation August 2021 31#321,800 1,600 1,400 1,200 1,000 800 600 400 200 PSCL Share Price 0 Capital Market -O-PSCL BSE Sensex Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 PRIVI SPECIALITY CHEMICALS LIMITED Dividend Percentage 60,000 25% 50,000 40,000 20% 30,000 BSE Sensex 15% 15% 20,000 10% 10,000 0 * Aug'21 data till 20th Aug 21 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 Shareholding Public Price Data Face Value Market Price (20th Aug 21) 52 Week H/L Market Cap (Rs lakhs) Equity Shares Outstanding (#) INR 10 1528.80 1,950.20/505.00 5,97,191 3,90,62,706 Investor Presentation August 2021 26% Promoters 74% 32#33DISCLAIMER PRIVI SPECIALITY CHEMICALS LIMITED "This Presentation, except for the historical information, may contain statements, including the words or phrases such as 'expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should' and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise of Privi Speciality Chemicals Limited, its direct and indirect subsidiaries and its associates. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Company's operations include, among others, economic conditions affecting demand / supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government policies and regulations, tax laws, and other statutes and incidental factors. You are urged to view all statements contained herein with caution. Privi Speciality Chemicals Limited does not undertake any obligation to update or revise forward look statements, whether as a result of new information, future events or otherwise" Investor Presentation August 2021 33