#1SRF The Corporate Relationship Department, BSE Limited 1st Floor, New Trading Ring Rotunda Building, P.J. Towers Dalal Street, Mumbai 400 001 Scrip Code-503806 SRF/SEC/BSE/NSE National Stock Exchange of India Limited "Exchange Plaza" Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Scrip Code-SRF Dear Sir, 29.07.2021 Presentation- Earnings Call (Un-Audited Financial Results for the quarter ended 30.06.2021) In continuation of our letter dated 26th July, 2021 informing about hosting of earning call to discuss Un- Audited financial results for quarter ended 30th June, 2021, please find enclosed Investors presentation, of the same for your reference and record. The same is also available on the Company's website i.e. www.srf.com Thanking you, Yours faithfully, For SRF LIMITED Repa RAJAT LAKHANPAL VP (CORPORATE COMPLIANCE) & COMPANY SECRETARY Encl: As above Corporate identity No. L181010L1970PLC005197 SRF LIMITED Block-C Sector 45 Gurugram 122 003 Haryana India Tel: +91-124-4354400 Fax: +91-124-4354500 E-mail: [email protected] Website: www.srf.com Regd. Office: Unit No. 236 Sr 237, 2nd Floor DLF Galleria, Mayur Plate Noida Link Road Mayur Vihar Phase 1 Extension Delhi 110091#2SRF Limited Q1 FY22 Results Presentation July 29, 2021 SRF We always find a better way#3Disclaimer SRF We always find a better way Certain statements in this document may be forward-looking. Such statements are subject to certain risks and uncertainties like regulatory changes, local, political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding COVID-19 and the effects of government and other measures seeking to contain its spread, risks related to an economic downturn in any of the countries where SRF Limited has its manufacturing and / or commercial footprint. SRF Limited may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. The company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. Q1 FY22 Results Presentation | 2 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.#4Contents וייוייוויי 04 Company Overview 10 Q1 FY22 Results Overview SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Muz 15 Q1 FY22 Segmental Performance 2.400 SRF We always find a better way 95 5.970 35.933 5.970 542 1720 539 137 1.710 1.720 9,996 900 0.314 48,100 0.314 0.316 233,167 0 781 1190 833,789 1.180 1.190 778,186 1 4,500 0.332 10,000 0.332 0.338 68,000 100 10,000 0.460 0.479 158,294 31 Outlook 430 7.500 350,000 000 Q1 FY22 Results Presentation | 3#5COMPANY OVERVIEW SRF We always find a better way#6Snapshot 8,400 INR Cr Revenue 43% Chemicals 39% Packaging 2,188 Cr EBIDTA Exports to 75+ Countries Operations in 4 Countries 15% Technical Textiles FY 21 numbers pertaining to continuing operations only TO 匡 1,198 Cr PAT 14 Manufacturing Plants 7,000 Global Workforce Q1 FY22 Results Presentation | 5 SRF We always find a better way#7Overview - Business Profile Revenue 3,645 3,292 1,240 232 EBIT 728 898 177 26 No of Plants 2 6 4 2 Chemicals Specialty Chemicals Intermediates for AI/API/ Applications Contract Manufacturing, Custom Research & Synthesis Fluorochemicals Packaging Films Films for Flexible Packaging Bi-axially Oriented Polyethylene Terephthalate (BOPET) Bi-axially Oriented Polypropylene (BOPP) • Refrigerants • Pharma Propellants Industrial Chemicals Technical Textiles Tyre Cord Fabrics (Nylon & Polyester) Belting Fabrics Polyester Industrial Yarn Others Coated Fabrics • Laminated Fabrics SRF We always find a better way These numbers are based on FY21 results; pertaining to continuing operations only Q1 FY22 Results Presentation | 6 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.#8Manufacturing Facilities FLUOROCHEMICALS & SPECIALTY CHEMICALS 2 National Operations 1. Rajasthan, India - Bhiwadi 2. Gujarat, India - Dahej TECHNICAL TEXTILES 4 National Operations 1. Madhya Pradesh, India - Malanpur, Bhind 2. Tamil Nadu, India - Manali 3. Gummidipoondi 4. Viralimalai PACKAGING FILMS 3 National Operations 1. Uttarakhand, India- Kashipur 2. Madhya Pradesh, India - Special Economic Zone (SEZ), 3. Pithampur, Indore - Bagdoon, Pithampur, Indore 3 International Operations 4. KwaZulu-Natal, South Africa 5. Rayong, Thailand 6. Jaszfenyszaru, Hungary SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 1 4 1 2 SRF We always find a better way LAMINATED FABRICS 1 National Operation 1. Uttarakhand, India - Kashipur COATED FABRICS 1 National Operation 1. Tamil Nadu, India Gummidipoondi International Operations 5 South Africa Thailand Hungary Q1 FY22 Results Presentation | | 7#9Market Leadership Across Businesses SRF We always find a better way Speciality Chemicals ■ Established relationship with marquee customers ☐ ☐ Capability in scaling up pilot processes and creating value through operational excellence High levels of customer engagement backed by strong R&D, technical service, product and quality management under one roof Handling complex reactions - halogenation, ethylation, hydrogenation, nitration, diazotization, grignard, isomerization, amination, organocatalysis, and decarboxylation Fluorochemicals ■ Unique and fully integrated facilities extending across a wide range of refrigerants and industrial chemicals ■ Domestic leadership in HFC's with strong trade distribution network; significant market share of Fluorochemicals in India with global scale operations ■ One of the few global ☐ manufacturers for Pharma grade 134a/P - propellant in metered dose inhalers Among the top five global manufacturers for key Fluorochemicals products Packaging Films ■ Recognized for expertise in developing, manufacturing and marketing innovative, superior film products ■ Flexible business model, strong and loyal customer relationships with tailored solutions; NPD Lab to ensure future readiness Highly efficient asset base offering value added products in close proximity to customer locations Technical Textiles ■ Domestic market leader in Tyre Cord manufacturing and Belting Fabrics ■ 40% share in India's Nylon Tyre Cord market. 2nd largest player globally ■ 3rd largest manufacturer of Conveyor Belting Fabrics in the world SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 8#10Growth Levers Build a Company known and respected for its R&D capabilities I SRF We always find a better way Focus on building leadership businesses Build and maintain market leadership in business segments Nurture innovation through R&D Reposition portfolio towards knowledge- based products Focus on building knowledge-based value-added products Continue to build new competencies in the chemical technology space Drive growth in new businesses De-risk from Technical Textiles Business SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 9#11דיוןיי וייויד וויי SRF We always find a better way Q1 FY22 RESULTS OVERVIEW#12Abridged Results Overview - Consolidated Consolidated figures Particulars (Rs. Crore) Q1 FY22 Q1 FY21 % Y-o-Y Gross Operating Revenue 2,699.4 1,545.2 74.7% EBIDTA 678.1 382.4 77.3% EBIDTA Margin (%) 25.1% 24.8% Depreciation Interest ECF (Gain)/Loss 123.0 104.0 18.2% 27.5 43.2 -36.4% (7.2) 9.1 -179.1% Profit Before Tax 534.9 226.2 136.5% Profit After Tax 395.3 176.9 123.5% Profit After Tax Margin (%) 14.6% 11.4% Diluted EPS (Rs.) 66.72 30.77 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. SRF We always find a better way Q1 FY22 Results Presentation | 11#13Results Overview - Financial Overview Consolidated figures Key Financial Ratios PARTICULARS SRF We always find a better way FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA Margin 17.59% 13.59% 20.43% 22.13% 21.42% 17.69% 19.00% 20.90% 26.05% PAT Margin 6.69% 4.04% 8.78% 9.51% 10.87% 8.38% 8.33% 12.70% 14.26% Net Debt to Equity 0.70 1.00 0.98 0.71 0.67 0.82 0.83 0.76 0.39 Net Debt to EBIDTA 2.08 3.80 2.83 1.97 2.11 3.01 2.42 2.48 1.24 Asset Turnover 0.82 0.73 0.77 0.7 0.68 0.66 0.72 0.66 0.65 Debtors Turnover 7.44 5.81 7.43 8.79 7.21 8.1 6.90 8.09 6.64 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 12#14705.2 1,113.7 CB PFB 677.4 1,041.3 ☐ 140.4 492.9 23.7 53.6 CB Chemicals Business; PFB - Packaging Films Business; TTB - Technical Textiles Business; Others SRF General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Consolidated figures Results Overview -> Revenue & EBIT REVENUES (Rs. Crore) Q1 FY21 ■Q1 FY22 1,546.7 2,701.5 TTB OTHERS TOTAL CB PFB 88.6 222.3 220.7 236.8 (14.0) TB 133.7 (0.3) 1.9 OTHERS TOTAL Q1 FY22 Results Presentation | 13 EBIT (Rs. Crore) IQ1 FY21 Q1 FY22 295.0 594.7 SRF We always find a better way#15Results Overview - Revenue Share Q1 FY21 1.5% 43.8% 9.1% 45.6% Q1 FY22 2.0% 38.5% CB-Chemicals Business; PFB - Packaging Films Business; TTB - Technical Textiles Business; Others SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. SRF We always find a better way 18.2% CB PFB TTB Others 41.2% Q1 FY22 Results Presentation | 14#16VOLEURUSO-1,35379-00:00:00 14 g (EEST) CUPLUSD Ticks 300/300 175 8611 NOS 110043 DEN 2335 23:43 23:46 23St 061314 HOW Gold spol-1.276,820-2:00:00 13 g (CEST) Goat upal (S), 1 rade, #159/300, Logarithmic, Helin Ah 5 SRF We always find a better way Q1 FY22 SEGMENTAL OVERVIEW Chemicals 13 202040 2050 21:00 20:10 21-23 21:30 21:40 21:50 2200 22:10 22:29 220 22 Technical Textiles PBX Quote Lat Beach Alets Settings Word Mar Name 88 507 down 17 gct NASDAQ Gov 12.27s or 12 percent of 4.399.9 Dow Jones Com SSE Com Packaging Films Others#17Chemicals Business SRF We always find a better way Q1 FY22 Results Presentation | 16#18Chemicals Business - Results Update SRF We always find a better way Consolidated figures PARTICULARS (Rs. Cr) Segment Revenues % Contribution to Revenues EBIT Q1 FY22 Q1 FY21 1,113.7 705.2 % SHIFT 57.9% 41.2% 45.6% 222.3 88.6 151.0% % EBIT Margins 20.0% 12.6% % Contribution to EBIT 37.4% 30.0% SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 17#19Chemicals Business Specialty Chemicals Business o Segment registered healthy performance over CPLY owing to: • Higher sales from exports and domestic markets • Strong focus on adding new products to strengthen the overall product range . Increase in raw material prices and export freight rates impacted Q1, seems to be a short-term phenomenon Focus on expanding Pharma product profile SRF continues to make investments in capacity expansion to maintain the growth momentum • Two new plants commissioned at Dahej Successfully completed the campaigns for two key products . Existing expansion plans are on track SRF We always find a better way Market Trends Growth momentum in Agrochemicals is expected to continue across key markets Visible traction in specialty chemical space The second wave of COVID-19 induced lockdowns resulted in disruption of supply chains, leading to an overall increase in raw material prices and export freight across geographies SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 18#20Chemicals Business SRF We always find a better way SOUD CHEMICAS Chemicals Technology Group o Chemicals Technology Group (CTG) is actively engaged in the development of new process technologies o Key focus on high end molecules o Strong internal competencies and capabilities Equipped with state-of-the-art R&D facilities and an ingenious team of scientists and engineers o 3 R&D centres in India 8 new process patents were granted in Q1FY22, taking the tally to 99 global patents to-date. Overall, the Company has applied for 317 patents SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. 99 Global Patents granted 317 Patents applied Q1 FY22 Results Presentation | 19#21Chemicals Business Fluorochemicals Business Segment delivered a robust performance on account of: • Higher sales volumes in the refrigerants and the blends segment, especially from the export markets • Uptick in Auto sales led to higher offtake in R-134a revenues • Healthy contribution from the chloromethanes segment . Domestic market in Q1 witnessed lower offtake induced by localized lockdowns SRF We always find a better way Base effect positive witnessed in Q1 FY 22 due to nationwide lockdown in Q1 FY 21 ○ The Board approved projects at Dahej to be implemented in next 24 months: • 2 Integrated expansion of the Fluorocarbon based Refrigerant capacity at an investment of Rs. 550 crore Installation of 200 KV grid at a projected cost of Rs. 135 crore, ensuring availability of stable power for future readiness Market Trends Production of passenger vehicles in India significantly higher when compared with CPLY Demand and production volumes in the AC market also witnessed a spike Pharma segment continued to do well in Q1 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 20#22Packaging Films Business Packaging Films DORNIER PULL ROLL STATION ALE SRF We always find a better way Q1 FY22 Results Presentation | 21#23Packaging Films Business - Results Update SRF We always find a better way Consolidated figures PARTICULARS (Rs. Cr) Segment Revenues % Contribution to Revenues Q1 FY22 Q1 FY21 1,041.3 677.4 % SHIFT 53.7% 38.5% 43.8% EBIT 236.8 220.7 7.3% % EBIT Margins 22.7% 32.6% % Contribution to EBIT 39.8% 74.8% SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 22#24Packaging Films Business Key Highlights Segment continues to perform well, despite impact of COVID-19 second wave on domestic markets, owing to: . • New capacities that came on-stream in Hungary and Thailand Growing product portfolio with two new products and increasing contribution from value-added products Surge in export freight rates impacted adversely ○ Bolstered the segment mantra of 'Easy to Do Business With': • Expanded market footprint to more than 100 countries Continuous improvement in quality and delivery. Wider and deeper penetration with multinational customers 。 Sustainability initiatives remains one of the key focus areas for the business Market Trends In Q1 FY22, demand for BOPET films was subdued, while demand for BOPP films remained healthy Globally, several new lines are scheduled to commence in BOPET and BOPP - to impact industry margins in the future Preference towards Global suppliers with multi-locational facilities Exports freight costs across geographies witnessing an upward trend SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. SRF We always find a better way Q1 FY22 Results Presentation | 23#25Technical Textiles Business SRF We always find a better way Technical Textiles Q1 FY22 Results Presentation | 24#26Technical Textiles Business - Results Update SRF We always find a better way Consolidated figures PARTICULARS (Rs. Cr) Segment Revenues % Contribution to Revenues EBIT Q1 FY22 Q1 FY21 492.9 140.4 % SHIFT 251% 18.2% 9.1% 133.7 -14.0 NA % EBIT Margins 27.1% -10.0% % Contribution to EBIT 22.5% -4.8% SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 25#27Technical Textiles Business Key Highlights o Segment reported a significantly improved performance on account of: • Improved demand in the Nylon Tyre Cord, Belting Fabrics and Polyester Industrial Yarn segments Re-structuring of margin profile with long-term customers o Continued focus on enhancing operational performance across all plants o Faced certain manpower availability issues due to COVID-19 second wave, leading to marginally lower capacity utilizations 。 TTB facilities in Gummidipoondi, Manali and Gwalior have earned a 100% vendor rating from its marquee clients • Market Trends Domestic tyre industry has gained significant momentum: Strong demand is observed across all TCF segments ○ Farm tyres segment witnessed robust demand due to normal monsoon forecast o Continual strong demand is observed in two three-wheeler segment due to rise in personal mobility With the reopening of the mining sector, the belting fabric industry witnessed strong demand SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. SRF We always find a better way Q1 FY22 Results Presentation | 26#28Others SRF We always find a better way Others Q1 FY22 Results Presentation | 27#29Others - Results Update SRF We always find a better way Consolidated figures PARTICULARS (Rs. Cr) Segment Revenues % Contribution to Revenues EBIT Q1 FY22 Q1 FY21 53.6 23.7 % SHIFT 126.3% 2.0% 1.5% 1.9 -0.3 NA % EBIT Margins 3.6% -1.2% % Contribution to EBIT 0.3% -0.1% SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 28#30Others - Key Highlights SRF We always find a better way Coated Fabrics Demand for Truck Tarpaulins and awnings was adversely affected due to second wave of Covid-19 New products being introduced in the market such as fish tank pond liners and emergency shelter / protection Laminated Fabrics • SRF maintained its volume and price leadership Demand for signages and hoardings was adversely affected owing to the second wave of COVID-19 pandemic Anti-dumping duty on Chinese PVC flex film extended till January 31, 2022 SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 29#31Our Community Engagement OXYGEN GENERATION PLANT RF Foundation Bharu ઓક્સિજન જોરેન URL કારની સરકારી હોસિવરકુંડલા ત્યારે સોય તો SRF Foundation SRF FOUNDATION OXYGEN GENERATION PLANT Supported by SRF Foundation, Bharuch A CSR Initiative of SRF Limited LANT ch DONATED BY SRF Atlas Cop VURAICU DI SKF • Organized COVID-19 vaccination SRF We always find a better way camps for the ॥ शुभं भवत् ॥ community in Bharuch, Bhiwadi & Gurugram • Set up of oxygen generation plant at K.K. Mehta Govt. Hospital in Amreli district of Gujarat • Launched Atal Tinkering Labs Atal Tinkering Labs (ATL) program in collaboration with Capgemini India and NITI Aayog • Conducted a month-long digital summer camp with 5,304 students from 11 locations SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 30#325.970 542 1.720 539,137 1.710 1.720 9,996 900 0.314 48,100 0.314 0.316 233,167 0 781 1.190 833,789 1.180 1.190 778,186 4,500 0.332 10,000 0.332 0.338 68,000 10,000 0.460 0.479 158,294 430 7.500 350,000 000 OUTLOOK SRF We always find a better way#33Outlook - Chemicals Business SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. SRF We always find a better way Specialty Chemicals • Moving up the value chain by accelerating qualifications of new molecules in both Agro and Pharmaceuticals sectors, capacity utilization of newly commissioned plants to remain in focus Working on key campaigns to be run in the next few quarters • ROI accretive projects involving complex chemicals and specialty products for our global customers Fluorochemicals • Focus on expanding in new markets / geographies and product offerings, ramping up sales from refrigerants and blends . Managing key in-progress capexes, within timelines Strong focus on sustainability initiatives that minimize the environmental cost of production Q1 FY22 Results Presentation | 32#34Outlook - Packaging Films Business SCANTECH SRF We always find a better way • Pressure on margins expected due to the start-up of new lines leading to price corrections Re-emergence of COVID-19 in ASEAN region could. affect Thailand performance Unrest in South Africa in July will impact Q2 performance of the business Focus on sales mix of both Thailand and Hungary BOPET facilities, vertical start up of recently commissioned BOPP film line in Thailand • New BOPP film line in India on track • Focus on increasing pace of R&D efforts, sustainability initiatives, efficient cost structures, enhanced capabilities and value-added products SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 33#35Outlook - Technical Textiles Business SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. SRF We always find a better way International capacities being rebalanced due to certain capacity closures, providing positive NTCF trends Higher operating leverage and cost optimization by capacity rationalization across various plants • Other sub-segments of Technical Textiles Business expected to make a significant contribution to the overall performance Q1 FY22 Results Presentation | 34#36About Us SRF We always find a better way Established in 1970, SRF Limited with an annual turnover of 8,400 crore (US$ 1.1 billion) is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company's diversified business portfolio covers Fluorochemicals, Specialty Chemicals, Packaging Films, Technical Textiles and Coated and Laminated Fabrics. Anchored by a strong workforce of close to 7,000 employees from different nationalities working across eleven manufacturing plants in India and one each in Thailand, South Africa and Hungary, the company exports to more than 75 countries. Equipped with State-of-the-Art R&D facilities, SRF has filed 317 patents for R&D and technology so far, of which 99 have been granted. A winner of the prestigious Deming Prize for two of its businesses namely Tyre Cord and Chemicals, SRF continues to redefine its work and corporate culture with TQM as its management way. For further information please contact Anoop Poojari / Karl Kolah CDR India Tel: +91 98330 90434 / +91 98330 10478 Email: [email protected]/[email protected] SRF-General [Restricted use] - This mail, document can be used by recipients for its intended purpose only. Q1 FY22 Results Presentation | 35