#1A Fairchem Organics Limited FAIRCHEM A FAIRFAX COMPANY Investor Presentation June 2021 Y#2Company at a Glance 25 years of legacy Long lasting Pan India Raw Material sourcing capabilities with diversified vegetable oil refineries Well entrenched Customer Relationships in high growth industries like Paint, Inks, Printing Promoted by Fairfax India Holdings and backed by experienced Management team Leading manufacturer in High emphasis on Business Sustainability India for substantial part of the overall and Corporate Governance standards revenue Ongoing Capacity expansion to increase capacity by more than 2.5x by end of FY22 with minimal CAPEX FAIRCHEM A FAIRFAX COMPANY One of a kind manufacturing process using by-products of vegetable oils to create value added products hence creating Wealth from Waste State-of-the-art manufacturing unit with critical equipment/design from Germany & Switzerland Strong Return Ratios ROE: 25% ROCE: 30% Strong Long Term Financial Track Record 5 year CAGR: Revenue: 14% EBITDA: 24% PAT: 36% Investor Presentation | www.fairchem.in 2#3Company Overview FAIRCHEM A FAIRFAX COMPANY 3#4Company Overview • . Fairchem Organics Ltd. (Fairchem) is engaged in the business of manufacturing of Oleo Chemicals and Nutraceuticals, since the last 25 years. The company's key oleo chemical products include Dimer Acid, Linoleic Acid, Palmitic Acid, Monomer Acid, and nutraceutical products include Mixed Tocopherols and Sterol concentrate. It has a state-of-the-art Manufacturing unit which was set up in 1995 and has over the years gone through various stages of expansion, backward integration, debottlenecking and technological advancements to create a one of its kind world class facility. The plant raw material capacity has been expanded from 45,000 MTPA to 72,000 MTPA in FY21, and is being expanded further to 1,20,000 MTPA by end of FY22 with minimal capex spends. Fairchem is the one of the only manufacturers of Linoleic Acid and Dimer Acid in India, which are the major part of the overall revenues and having a large addressable market size in India. Mixed Tocopherol concentrate and Sterols concentrate are nutraceutical products having usage in FMCG and food additives. Fairchem supplies to various marquee customers like Asian Paints, Huber (erstwhile Micro Inks), Arkema, BASF, ADM, Cargill etc. Investor Presentation | www.fairchem.in 11.62% 2,039 Revenue & EBITDA Margin (In Mn) FAIRCHEM A FAIRFAX COMPANY 17.32% 15.79% 13.92% 14.44% 3,966 3,065 2,428 2,499 FY17 FY18 FY19 FY20 FY21 FY21 Segmental Revenue (%) O Oleo Chemicals 97% Nutraceutical 3% 4#5Fairchem's Competitive Advantage . • • Major Player in the Indian Oleo Chemical Market Using Renewable Resources Processing waste from edible oil refining process to produce high value oleo chemicals giving it price advantage Enjoy Leadership Position in the industry due to barriers to entry Focus on green manufacturing processes which reduces effluents to ensure sustainability Strong Customer and Supplier Relationships • Well entrenched Customer Relationships in high growth industries like Paint, Inks, FMCG • Fair pricing from customers due to quality of products • More than 20 years relationship with key raw material suppliers. FAIRCHEM A FAIRFAX COMPANY Competitive Position • Low cost of raw material and efficient manufacturing process enables it to be highly cost competitive vis a vis global peers Leading manufacturer in India for substantial part of the overall revenue • Position to sell most that it produces Experienced senior management . • • - Fairchem is well supported by an esteemed Promoter Institution – Fairfax India Holdings Strong and experienced management team that have positioned business well for continued growth and development Strong R&D team focusing on integration and green chemistry Capital Efficiency • . Majority of the capacity expansion has been undertaken primarily through internal accruals. Judicious strategy on capacity expansion by evaluating market demand-supply scenario and working very closely with its customer base Investor Presentation | www.fairchem.in 5#6Key Milestones The original project was to process by-product stream of Rice Bran Oil. Commenced project in late 1993. The Company was Listed on the BSE in 1995 Main focus on reduction of manufacturing cost per ton. Complete Re-Engineering of its Energy Consumption System. Installation of new balancing equipment. Increase in manufacturing Capacity to 18,000 MT p.a. Fairfax India Holdings Corporation (FIH) acquired about 45% stake in Adi Finechem Ltd De-Merged from Fairchem Speciality and now operating as Fairchem Organics Got listed on the NSE and BSE as Fairchem Organics on December 2020 1985 1995 1996 2010 2010 2012 2013 2014 Nov 2015 2016 FAIRCHEM A FAIRFAX COMPANY 2020 2021 Shifted its focus to producing Fatty Acids. Was the first and only company to manufacture Mixed Tocopherol Concentrate in India and supply to Henkel Corp subsequently taken over by Congnis Increase in Manufacturing Capacity to 8,000 MT p.a. Investor Presentation | www.fairchem.in Increased capacity to 25,000MT p.a. In December 2013. Further increased its capacity to 30,000 MT p.a. in September 2014. Increased capacity of 45000 MT in FY 16. Fairfax India acquired approximately 45% of the outstanding shares in the company at INR 212/share. Board of Adi and Privi unanimously approved a scheme of arrangement to demerge the aroma chemicals business of Privi into a wholly owned subsidiary of Adi Finechem - Adi Aromatics Limited The name of Adi Finechem Limited changed to 'FAIRCHEM SPECIALITY LIMITED' Expanded capacity from 45,000 MTPA to 72,000 MTPA 9#7Board of Directors FAIRCHEM A FAIRFAX COMPANY Utkarsh Bhikhoobhai Shah - (Chairman and Non-Executive Director) Mr. Shah aged 60 years is a science graduate with Chemistry as a principal subject. Over a period of last more than 38 years and apart from spreading the existing coal business, he diversified into textile dyes, speciality chemicals, auxiliaries, intermediates, polyester fibre & Real Estate Development. He acquired partial equity stake of Fairchem Organics Limited in the year 2010. He is heading various charitable initiatives in rural development, senior citizen, education & health. He is past president of Gujarat Chamber of Commerce & Industry. In the past, he also held the position of president of Jain International Trade Organisation, an international organization of businessmen, industrialist, professionals and knowledge stake holders. Nahoosh Jayvadan Jariwala - (Managing Director) He holds a bachelor's degree in commerce from Gujarat University. He has work experience of more than 25 years in the chemical industry. He was the Managing Director of Fairchem Speciality Limited (now known as Privi Speciality Chemicals Limited) since April, 2010. Previously he was Executive Director of the said company. Since August, 2020, he is the Managing Director of Fairchem Organics Limited. Sumit Maheshwari - (Nominee Director from Fairfax India Holdings) He is a Nominee Director of our Company nominated by our Promoter i.e. FIH Mauritius Investments Ltd. He holds a bachelor's and a master's degree in commerce from the University of Mumbai. He is a certified associate member of the Institute of Chartered Accountants of India. He has completed the post graduate programme in management from the Indian School of Business. He has over 10 years of experience in finance sector. Previously, he has worked with KPMG and is currently the managing director and chief executive officer of Fairbridge Capital Private Limited. Venkatraman Srinivasan - (Independent Director) He is an Independent Director of our Company. He holds a bachelor's degree in commerce from University of Bombay and is a fellow member of Institute of Chartered Accountants of India since 1981. He is a partner in M/s. V. Sankar Aiyar & Co., Chartered Accountants, since 1984. He is engaged in audit and assurance practice and direct tax and corporate advisory services since 1984, specialising in statutory audits of banks, mutual funds and financial companies, public sector companies, and in advisory in the areas of direct tax, company law, competition law, the Foreign Exchange Management Act (FEMA) and Securities and Exchange Board of India (SEBI) matters. He has a work experience of 35 years. He is a special invitee on the Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) for the F. Y. 2020-21 and was a special invitee on the Ind AS Transition Facilitation Group Committee of the ICAI for the F. Y. 2019-20. He participated in the case study based governance program on "Audit Committees in this New Era of Governance" at the Harvard Business School. Darius Dinshaw Pandole - (Independent Director) He is an Independent Director of our Company. He holds a bachelor's degree in economics from Harvard University and a master's degree in business management from the University of Chicago. He is presently the managing director and chief executive officer - private equity and equity AIF, JM Financial Limited. He has over 27 years of experience in private equity. Prior to this, he was a partner at New Silk Route Advisors, a private equity advisory firm primarily focused on India. He was also an executive director with IDFC Asset Management Company Limited that managed the India Development Fund, an infrastructure focused private equity fund. Sonal Vimal Ambani - (Independent Director) is an Independent Director of our Company. She holds a bachelor's degree in chemistry, a master's degree in business administration in marketing and finance and a doctorate in business management. She has worked as an Assistant Vice President in Morgan Stanley Dean Witter. She is involved in charity and non-profit initiatives. She also holds two patents granted in the US, namely, 'Systems and Method for Providing Financial Services to Children and Teenagers' and 'Purchase Management System and Electronic Receipts'. Investor Presentation | www.fairchem.in#8Manufacturing Facility Investor Presentation | www.fairchem.in • The company's State-of-the-Art Manufacturing unit is located in Sanand, Ahmedabad. • It has one of the largest processing capacities for Natural Soft Oil based Fatty acids in India. FAIRCHEM A FAIRFAX COMPANY • • • • The low cost of raw material and efficient manufacturing process enables the company to be highly cost competitive vis-a-vis global peers The current installed capacity measured in terms of throughput of raw materials is 72,000 MTPA. The plant currently has a staff strength of more than 200 employees. Equipment and Make: Short Part Distillation from UIC Germany, Fractionation from Sulzer Switzerland, Wiped film Evaporators, Medium and High-Pressure Splitters Quantity of Raw Material Processed Asset Turnover Ratio Plant Capacity (Metric Tons) (Metric Tons) 3.3 72,000 52,115 60,000 48,207 2.5 2.2 2.3 2.5 38,904 41,020 45,000 45,000 45,000 31,198 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 8#9Capacity Expansion FAIRCHEM A FAIRFAX COMPANY 1,20,000 • Over the years Fairchem has gone through various stages of expansion, debottlenecking and technological advancements to create a one of its kind world class facility. Majority of the capacity expansion has been undertaken primarily through internal accruals. The company uses a judicious strategy on capacity expansion by evaluating market demand-supply scenario and working very closely with its customer base to understand their needs and requirements. The company undergoes a major capex every few years only once the plant utilisation reaches optimum levels. Fairchem's last major capex was done from FY14 to FY16 when it enhanced the capacity from 18,000 MTPA to 45,000 MTPA Plant Capacity (Metric Tons) 2.5X 90,000 72,000 • . In FY21 the company began its next phase of capacity expansion and had increased the capacity to 72,000 MTPA as on 31st March 2021. Furthermore, it plans to increase the capacity to 90,000 MTPA by end of H1-FY22 and to 1,20,000 MTPA by end of FY22. 45,000 The total capex spend to enhance the capacity from 45,000 MTPA to 1,20,000 MTPA along with forward integration of existing product streams is expected to be under INR 100 crores. FY20 FY21 H1-FY22 FY22 The capacity expansion has the potential to more than double the company's revenues in the coming years, besides enhancing the return ratios. Investor Presentation | www.fairchem.in 6#10Financial Governance Standards Invest for long term growth value creation Always be adequately capitalized Not overleverage the balance sheet Secure sources of sustainable raw material supply Invest in backward and forward integration Transparent communications with all the stakeholders. Low volatility in the cash flow generation Investor Presentation | www.fairchem.in FAIRCHEM A FAIRFAX COMPANY 10 10#11Business Overview B FAIRCHEM A FAIRFAX COMPANY 11#12Business Segments Investor Presentation | www.fairchem.in FAIRCHEM ORGANICS OLEO CHEMICALS NUTRACEUTICAL FAIRCHEM A FAIRFAX COMPANY 12 122#13Oleo Chemicals Oleo Chemicals are chemicals derived from Plant and Animal Fats. They are analogous to petrochemicals derived from petroleum. The formation of basic oleochemical substances like Fatty Acids, Fatty Acid Methyl Esters (FAME), Fatty Alcohols, Fatty Amines and Glycerol are by various chemical and enzymatic reactions. • . Fairchem is a leading producer of Fatty Acids from natural oils and fats derived from vegetable oils The company has over the years developed and mastered the process of manufacturing its entire product range from waste/by product streams of natural vegetable oils by utilizing state of the art equipments of acceptable local and international quality Revenue Contribution (INR Mn) Main Product Linoleic Acid / Soya Fatty Acid Dimer Acid Application • Paints and Inks FAIRCHEM A FAIRFAX COMPANY •Paints, Inks and Epoxy Hardeners Monomer Acid • Paints and Inks Distilled fatty acids Palmitic • Liquid Soap, Textile Auxi and low Value paints •Amines, Amides, Soap Volume (M Ton) 3,843 36,931 38,050 2,957 28,799 2,278 2,090 1,521 Investor Presentation | www.fairchem.in 49,892 47,878 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 13 33#14Linoleic Acid Linoleic Acid is designed especially to produce fast drying protective coating having lighter color. It is an unsaturated fatty acid and is a liquid at room temperature. Purpose of Use: . Linoleic Acid is designed especially to produce fast drying protective coating having lighter color. Company Positioning: • The only company to manufacture Linoleic Acid of such quality in India. Cost advantage due to usage of by product of vegetable oil refinery as raw material. Investor Presentation | www.fairchem.in Applications Paints Inks Amines Lubricants Cosmetics Textiles FAIRCHEM A FAIRFAX COMPANY 14#15Dimer Acid Dimer Acid also known as dimerized fatty acids are prepared from unsaturated fatty acids obtained from vegetable oil. It is a light yellow or yellow viscous transparent liquid. It is non-toxic. Purpose of Use: • Offers improved bonding. Used as curing agents for epoxy-based anti-corrosion coatings and for priming and protecting metal Dimer acids act as a stabilizer in lubricants used for Cold Rolling Mills Increase the life span of nylon products Applications Company Positioning: • Fairchem is the only company to manufacture this product in India • • The company supplies this product as an import substitute for sale to consumers in Surface Coating and Printing Ink industry on import parity with added advantage of just-in-time delivery and better quality. As result Fairchem has been preferred supplier for most of its clients and believes it would gradually substitute large part of its client requirement, which are met through import at present. It makes this product by using relatively cheaper raw material which is a by-product of vegetable oils whereas world at large makes them from virgin Vegetable oils or Tall Oils. Investor Presentation | www.fairchem.in Paints Applications Inks Epoxy Hardeners Lubricants Resins Textiles FAIRCHEM A FAIRFAX COMPANY 15#16Monomer Acid & Distilled fatty acids Fairchem is one of the leading producers of Monomer and Other distilled fatty acids with significantly lower raw material costs Monomer Acid: . Monomer Acids are non-petroleum, non-animal based products that can be used as substitutes for various vegetable and tallow-based fatty acid derivative products. Applications Paints Lubricants . Monomers are atoms or small molecules that bond together to form more complex structures such as polymers. Soaps Detergents Distilled fatty acids: . . . Fatty acids are obtained from hydrolysing fats and oils of animal and plant origin at a high pressure and temperature. They are then distilled, obtaining a product with a white appearance and a soapy feel. Distilled fatty acids have a wide range of applications in consumer and industrial markets. They are generally liquids or soft solids, and contain a mixed composition of acids reflecting the parent oil or fat. Distilled fatty acids are important raw materials for the production of soaps, detergents, surfactants and lubricants. Investor Presentation | www.fairchem.in Textiles FMCG Nutri Grain FROSTIES FAIRCHEM A FAIRFAX COMPANY 16#17Nutraceuticals • Nutraceutical, a portmanteau of the words “nutrition” and “pharmaceutical” applied to products that range from isolated nutrients, dietary supplements and herbal products, specific diets, genetically modified food, and processed foods such as cereals, soups, and beverages. Fairchem currently produces (Natural) Mixed Tocopherol Concentrate/Natural vitamin E which it primarily exports to global MNCs. Main Product Application Natural Vitamin E/Food and Cosmetic Industry • Vitamin E (Natural) Mixed Tocopherol • Cosmetic Industry Concentrate • Food • Pharmaceutical • FMCG • Pet Food (Natural) Concentrated Sterols • Investor Presentation | www.fairchem.in Revenue Contribution (INR Mn) 334 258 207 102 115 FAIRCHEM A FAIRFAX COMPANY FY17 FY18 FY19 FY20 FY21 Volume (M Ton) 1,903 1,363 954 477 520 Food Pharmaceutical (Raw material to manufacture Cortico Steroids) FY17 FY18 FY19 FY20 FY21 17 17#18Mixed Tocopherol Concentrate FAIRCHEM A FAIRFAX COMPANY • Tocopherol is used as raw material to manufacture natural Vitamin E. Natural Vitamin E is almost 3-4 times more expensive than synthetic Vitamin E. Developed markets like US and Europe are the key consumers due to the high value of the product. Only method of manufacturing Natural Vitamin E is through vacuum distillation of the raw material which is a by-product of vegetable oil refining - Deodorizer Distillate. Fairchem is the dominant manufacturer of Mixed Tocopherol Concentrate in India which is sold on `Freight Saving', `Production Cost Saving' and `By-product Value concept'. Key clients for Nutraceuticals are BASF, ADM, Cargill Inc. (U.S.A). Purpose of Use: Essential ingredient in making Natural Vitamin E Help skin with problems such as Acne, Dryness, and Swelling Useful for fighting diseases associated with aging- particularly cancer and heart disease. Advantages of Natural Vitamin E • The effect of natural vitamin E as compared to synthetic vitamin E is 1:3. However, after absorption, a protein in the liver recognizes only the naturally occurring forms, such as d-alpha tocopherol. As a result, the unrecognized forms of synthetic vitamin E are preferentially excreted. When taking some synthetic vitamins, there's also an increase potential for allergic reactions. Since some synthetic vitamins are largely made up of chemicals, including nicotine and coal tars, some individuals may experience allergic reactions when taking them. Pregnant women transfer natural-source vitamin E to their babies approximately three times more efficiently than synthetic vitamin E. Investor Presentation | www.fairchem.in Vitamin E Applications Food FMCG Pet Food Nutri Grain FROSTIES Cosmetic Industry Pharmaceutical 18#19Industry Overview FAIRCHEM A FAIRFAX COMPANY 19#20Oleo Chemicals Industry • FAIRCHEM A FAIRFAX COMPANY The oleo chemicals market is broadly segmented into four key applications markets: Pharmaceutical & personal care, • Food & beverages, Soaps & detergents, Polymers Pharmaceutical & personal care is the largest application market for oleo chemicals accounting for majority of the share. World Production of Leading Oil & Fat, 2020 Others 28.40% Palm 27.80% Sunflower 7.70% Rape . Growing biochemical product demand in various consumer applications such as personal care, detergents, and food & beverages is expected to remain a key factor driving growth. 12.70% Soya bean 23.40% • • . The global oleo chemicals market is expected to reach USD 30.15 billion by 2024. The global oleochemicals market size was valued at USD 19.46 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.57% from 2021 to 2028. The Linoleic Acid Market is forecasted to grow at a rate of 4.0% CAGR during the period of 2021-2026. Dimer acid market will reach an estimated valuation of USD 2.11 Billion by 2027, while registering this growth at a rate of 4.10% for the forecast period of 2020 to 2027. Dimer acid market report analyses the growth, which is currently being growing due to the growing number of construction activities in emerging economies. • Asia Pacific is the leading consumer of oleo chemicals. The region is also expected to witness the fastest growth over the next few years owing to abundant raw material supply and significant developments in the application markets. India's leading consumption of Leading Oils Groundnut Cotton 6.60% 3.20% Others 10.30% Rape 14.20% Palm 42.70% Soya bean 16.40% Sunflower 6.50% Investor Presentation | www.fairchem.in 20 20#21Oleo chemicals Industry in India • India oleochemicals market is projected to cross US$2.6 billion by 2025. FAIRCHEM A FAIRFAX COMPANY India oleochemicals market has been segmented into five categories namely - fatty acids, fatty alcohols, glycerin, fatty acid methyl esters and fatty amines. Robust growth in India oleochemicals market can be attributed to the increasing demand for naturally derived raw materials for paints and soaps industry. Fatty acids control a lion's share in the India oleochemicals market on account of large requirement for distilled fatty acids and polyunsaturated acids, which are essential in the production of soaps, personal care products, detergents, lubricants, surfactants, etc. Indian Oleo Chemical players are well positioned with abundant raw material supply, lower manpower cost and improving infrastructure which should be the key market drivers for the industry at large. Fatty acids, Fatty Alcohol and Methyl Ester and Refined Glycerin are basic Oleo Chemicals which then go into end use application of Surfactant, Soap and Detergents, Cosmetics, Food Emulsifiers, Paints and Inks & Lubricants. • In India while processing crude soft vegetable oils like SSCC, Groundnut and Rapeseeds 3 key products are generated by these oil refineries Prime Oil • . . Acid Oil (AO) (Used for Linoleic & Dimer Acid) Deodorizer Distillate (DOD) (Used for Tocopherol) The Prime Oil is converted into oils for edible purpose and AO and DOD which are composed of Free Fatty Acids, Mix Glycerides and other important nutraceutical products are sold to chemical companies to derive fatty Acids AO from different sources of Vegetable Oil can generate varied Fatty Acids that have different applications Oils SSCC, Groundnuts, Rice Bran & Rapeseeds By-product Acid Oils Deodorizer Distillate Deodorizer Distillate SSCC, Groundnuts, Rice Bran & Rapeseeds Palm, Palm Kernel & Coconut SSCC-Soya, Sunflower, Corn and Cotton Investor Presentation | www.fairchem.in Fatty Acids Palmitic, Linoleic, Dimer, Monomer Mixed Tocopherol, Distilled Fatty Acids Stearic, Lauric, Distilled Fatty Acids Application Inks & Paints, Epoxy hardeners Natural Vitamin E Low grade resins and Soap' Soap Noodles, Rubber Tyre, Cosmetic 21 21#22FAIRCHEM A FAIRFAX COMPANY Financial Overview 22 22#23Profit & Loss Statement PARTICULARS (INR Mn) Revenue from Operations FY19 FY20 FY21 2,499 3,065 3,966 Total Expenses EBITDA EBITDA Margin 2,138 2,581 3,279 361 484 687 14.44% 15.79% 17.32% Other Income 43 66 3 Depreciation 55 60 66 Finance Cost 57 66 68 PBT 292 424 556 Tax Profit After Tax PAT Margin 77 77 131 215 347 425 8.60% 11.32% 10.72% Other Comprehensive Income (2) (1) (5) Total Comprehensive Income 213 346 420 Basic/Diluted EPS (INR per share) 5.51 26.65 32.63 Investor Presentation | www.fairchem.in FAIRCHEM A FAIRFAX COMPANY 23#24Balance Sheet FAIRCHEM A FAIRFAX COMPANY ASSETS FY19 FY20 FY21 EQUITY AND LIABILITIES FY19 FY20 FY21 Non-Current Assets EQUITY Property, Plant and Equipment 1,108 1,219 1,220 Equity Share Capital 391 130 130 Capital work-in-progress 9 94 295 Instruments entirely equity in nature Right of use assets 44 43 43 Other Equity 635 1,137 1,557 Intangible Assets 1 1,026 1,267 1,687 Financial Assets (i) Investments (ii) Loans LIABILITIES Non-Current Liabilities Financial Liabilities (iii) Other Financial Assets 1 3 - Borrowings 83 163 260 Non-current Tax Assets (Net) 6 14 18 Provisions 9 12 18 Other Non-current Assets 13 66 30 Deferred Tax Liabilities (Net) 121 116 113 1,181 1,440 1606 213 291 391 Current Assets Current Liabilities Inventories 340 353 453 Financial Liabilities Financial Assets (i) Borrowings 405 444 222 (i) Trade receivables 321 379 468 (ii) Trade Payables 100 64 109 (ii) Cash and Bank Balance 2 2 4 (iii) Other financial liabilities 93 81 107 (iv) Loans Other current liabilities 28 29 46 (v) Other Financial Assets Provisions 6 3 10 Other current assets 33 15 55 Current Tax Liabilities (Net) 6 10 14 696 749 980 638 631 508 TOTAL ASSETS 1,877 2,189 2,586 TOTAL EQUITY AND LIABILITIES 1,877 2,189 2,586 Investor Presentation | www.fairchem.in 24 24#25Cash Flow Statement PARTICULARS (INR Mn) FY19 FY20 FY21 Cash and Cash Equivalents at Beginning of the year 0.2 0.2 0.3 Cash Flow From Operating Activities 342 312 394 Cash Flow from Investing Activities Cash Flow From Financing Activities (137) (239) (228) (205) (73) (166) Net Inc./(Dec.) in Cash and Cash Equivalent Cash and Cash Equivalents at End of the year 0.2 0.2 0.3 Operating Cash Inflow 342 312 394 Capital Expenditure (177) (303) (231) FCF Investor Presentation | www.fairchem.in 165 9 163 FAIRCHEM A FAIRFAX COMPANY#26Key Financial Highlights Revenue (In Mn) 5 Year CAGR - 14% EBITDA (In Mn) & EBITDA Margin (%) 5 Year CAGR -24% 17.32% 15.79% 3,966 13.92% 14.44% 687 3,065 11.62% 2,428 2,499 2,039 484 338 361 237 FAIRCHEM A FAIRFAX COMPANY PAT (In Mn) & PAT Margin (%) 11.32% 10.72% 5 Year CAGR - 36% 5.00% 91 8.00% 8.60% 215 194 425 347 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Debt to Equity 0.69 0.63 0.47 0.48 86 0.28 Cash Conversion Cycle Days 98 94 Return Ratios 31.44% 30.01% 27.52% 28.20% 19.32% 27.39% 87 25.18% 85 22.21% 20.97% 12.59% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 ROCE ROE Investor Presentation | www.fairchem.in 26 26#27Capital Markets 20% 15% 10% 5% 0% -5% -10% -15% Dec-20 Jan-21 Price Data (31st March, 2021) Face Value Sensex 15.00% 10.00% Dividend Percentage 25.00% 15.00% FAIRCHEM A FAIRFAX COMPANY 35.00% Feb-21 Mar-21 FY17 FY18 FY19 FY20 FY21 INR 10.00 Market Price 52 Week H/L Market Cap (Mn) Equity Shares Outstanding (Mn) 748.6 764.9/511.0 9,747.4 13.0 1 Year Avg Trading Volume ('000) 5.2 Investor Presentation | www.fairchem.in Shareholding Pattern as on 31st March, 2021 Public 26% Promoters 74% 27#28Disclaimer FAIRCHEM A FAIRFAX COMPANY Fairchem Organics Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context has been taken care off in the presentation and neither we undertake any obligation as to the regular updating of the information as a result of new information, future events or otherwise. We will accept no liability whatsoever for any loss arising directly or indirectly from the use of, reliance of any information contained in this presentation or for any omission of the information. The information shall not be distributed or used by any person or entity in any jurisdiction or countries were such distribution or use would be contrary to the applicable laws or Regulations. It is advised that prior to acting upon this presentation independent consultation/advise may be obtained and necessary due diligence, investigation etc. may be done at your end. You may also contact us directly for any questions or clarifications at our end. This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our industry and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words 'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue and similar expressions identify forward looking statements. Actual results, performances or events may differ materially from these forward-looking statements including the plans, objectives, expectations, estimates and intentions expressed in forward looking statements due to a number of factors, including without limitation future changes or developments in our business, our competitive environment, telecommunications technology and application, and political, economic, legal and social conditions in India. It is cautioned that the foregoing list is not exhaustive This presentation is not being used in connection with any invitation of an offer or an offer of securities and should not be used as a basis for any investment decision Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and 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. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further details, please feel free to contact our Investor Relations Representatives: XX VALOREM ADVISORS Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: [email protected] Investor Presentation | www.fairchem.in 28