#1Clean Science Clean Science and Technology Limited innovation at work 03.08.2023 To, BSE Limited Phiroze JeeJeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001 Scrip Code: 543318 Subject: Investor Presentation. National Stock Exchange of India Limited Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 Trading Symbol: CLEAN Dear Sir/Madam, In accordance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Financial Results presentation for quarter ended 30th June, 2023 is enclosed. The aforesaid presentation is also available on the Company's website. You are requested to take the same on record. Thanking You. For Clean Science and Technology Limited Mahesh Digitally signed by Arvind Kulkarni Mahesh Kulkarni Company Secretary Encl: As above Mahesh Arvind Kulkarni Date: 2023.08.03 14:37:04 +05'30' Regd. Office: 503, Pentagon Tower 4, Magarpatta City, Hadapsar, Pune - 411013, Maharashtra, India Tel: +91 20 26899953 Fax: +91 20 26898894 Email: [email protected] Website: www.cleanscience.co.in CIN: L24114PN2003PLC018532#2Clean Science and Technology Ltd. Investor Presentation Clean Science Q1 FY 2024 I AUGUST 2023#3SAFE HARBOUR This investor presentation has been prepared by Clean Science and Technology Limited ("CSTL") and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied, should not be deemed to constitute an offer. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the general business plans and strategy of Clean Science and Technology, its future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as 'will', 'expected to', 'horizons of growth', 'strong growth prospects', among many others, or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. Clean Science and Technology Limited may alter, modify, or otherwise change in any manner, the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner. Clean Science 2#4Q1 FY 2024 Update Clean Science#5Q1 FY24 UPDATE EBITDA margins strengthened, amidst decline in revenue, led by lower input prices and lean operating cost structure 153 181 205 234 248 237 217 Clean Science Revenue in INR Crore 188 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 49.1% 46.1% 45.3% 42.7% 41.3% 41.3% 39.4% 39.8% 31.7% 29.9% 39.2% 37.9% 35.5% 35.1% 33.1% 9.9% 10.0% 10.9% 10.6% 7.9% 8.7% 8.4% 6.7% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 P&F costs % RM costs % EBITDA % CAPEX & BUSINESS UPDATE Note: RM - raw material; P&F - power & fuel Incurred total capex of Rs. 90 crores during current quarter, including investment in subsidiary of Rs. 85 crores Clean Fino-Chem Limited (CFCL) construction work on track#6Q1 FY24 P&L OVERVIEW - STANDALONE EBITDA margins improved y-o-y basis, despite drop in revenue, led by better product mix and prudent operating cost structure Clean Science P&L (INR Crore) Sale of products Q1 FY2024 Q4 FY2023 | Q-0-Q (%) Q1 FY2023 Y-0-Y (%) 185.2 214.4 (14)% 232.0 (20)% Other operating income 2.9 2.5 2.0 EBITDA margins are higher by 200 bps on Total Revenue 188.1 216.9 (13)% 234.1 (20)% Y-o-Y basis, despite 20% drop in revenue, Raw material expenses 72.6 64.1 13% 91.3 (20)% led by - Raw material % 39.2% 29.9% 39.4% better product mix Other operating expenses 38.9 47.4 (18)% 51.4 (24)% EBITDA 76.5 105.4 (27)% 91.3 (16)% EBITDA % 41.3% 49.1% 39.4% Depreciation expenses 10.7 9.8 9% 8.5 26% benign input prices prudent operating cost structure (limited impact of negative operating leverage) Other Income 12.4 12.4 10.9 Profit before tax (PBT) 78.2 107.9 (28)% 93.8 (17)% PBT % 42.2% 50.3% 40.4% Profit after tax (PAT) 58.5 80.9 (28)% 70.4 (17)% PAT% 31.6% 37.7% 30.4% 5#7REVENUE PROFILE - Q1 FY 2024 Decline in revenue led by correction in volume and realization க 0000 00 0000 10 la 13% REVENUE MIX BY SEGMENT 19% Q1 FY24 Performance chemicals 67% 10% 23% Q1 FY23 66% Pharma & Agro Intermediates FMCG chemicals Performance chemicals - Decreased realization and volume; volume impact more than realization 10% REVENUE MIX BY GEOGRAPHY 6% 35% 21% 37% Q1 FY24 32% Q1 FY23 13% 19% 13% 14% China India Europe Americas Row Pharma & Agro Intermediates - Decreased realization and volume; volume impact more than realization Domestic market was relatively less impacted than export market FMCG chemicals - Volumes were better while realization corrected; overall registered revenue growth Revenue share of Americas increased Clean Science 9#8Clean Science Corporate presentation#9CLEAN SCIENCE AND TECHNOLOGY AT A GLANCE A brief Introduction about the Company सं ➤ One of the fastest growing and among the most profitable fine and specialty chemical companies globally. Among the largest manufacturers of certain specialty chemicals developed in-house. ➤ Among the few global organizations focused on developing ingenious technologies with unique, innovative, sustainable, and cost- effective catalytic manufacturing processes 500+ Global and domestic customers across 30+ countries 1,300+ Strong team (8% women) 16+ Accreditation & Zero Debt Company Certifications Sustainability and 72% revenues from exports ESG deeply ingrained in our philosophy 3 manufacturing units with 44,000 MTPA combined 90+ Scientists over 4 R&D facilities capacity Clean Science 8#10COMPANY EVOLUTION Continuous R&D and Innovation has led to new product launches on a consistent basis YEAR 2006 2009 2011 2014 2018 2020 2021 2022 2023 REVENUES (INR Crore) 1 19 120 241 419 512 685 936 Technocrat Promoters collaborated to develop novel, clean and sustainable chemical processes Aligned to the philosophy, Company was named as Commercialized unique catalytic technology to manufacture 4-MAP Clean Science and Technology 2006 2009 Commercialized unique catalytic technology to manufacture MEHQ and Guaiacol Clean Science Commercialized plant to manufacture P-BQ and TBHQ 2023 2022 2020 Expanded capacity of MEHQ, Guaiacol and BHA by 50% Commercialized plant to manufacture HALS 770 & 701 Commercialized unique vapour phase route to manufacture Anisole Backward integration for flagship products 2021 Commercialized unique technology to manufacture DCC 2018 2014 Commercialized unique 2011 catalytic forward integration to manufacture BHA#11DIVERSIFIED PRODUCT PROFILE SERVING CRITICAL END-USER INDUSTRIES Largest capacity in the world for our flagship products Clean Science PERFORMANCE CHEMICALS 8. MEHQ (Monomethyl Ether of Hydroquinone) Used as polymerization inhibitor in acrylic acids, acrylic esters, super absorbent polymers (diapers and sanitary pads) Pre-cursor for agrochemical industry 1 in World & India BHA (Butylated Hydroxy Anisole) Used as anti-oxidant in food and feed industry 1 in World & India AP (Ascorbyl Palmitate) Used in infant food formulations, breakfast cereals and cosmetics 1 in World & India TBHQ (Tertiary Butyl Hydroquinone) Stabilizer in oil industry 2 in World & India HALS (Hindered Amine light Stabilizers) HALS 701 is used in water treatment HALS 770 is used for UV stabilization in a variety of polymers 1 in India PHARMA AND AGRO INTERMEDIATES 00 00 00 Guaiacol Pre-cursor to manufacture APIs for cough syrup (pharma industry) Key raw material to produce Vanillin FMCG CHEMICALS |b|| 0 ||| C②4-MAP (4-Methoxy Acetophenone) Used in UV blocker in sunscreens (cosmetics industry) 2 in World 1 in India 1 in World & India DCC (Dicyclohexyl Carbodiimide) Used as reagent in anti-retroviral 2 in World 1 in India p-BQ (Para Benzoquinone) Intermediate in agrochemical industry 2 in World 1 in India Anisole Precursor to perfumes, insect pheromones, pharmaceuticals Majority of Anisole produced is used for captive consumption 1 in World & India Jol 10#12KEY DIFFERENTIATORS THAT ADD VALUE Unique benefits that set our business apart from competition 888 INNOVATION Strategic process innovation and new product development driven by a strong in-house R&D team GLOBAL LEADERS Among the largest producers globally of critical specialty chemicals with diversified applications PREFERRED PARTNER OF CHOICE Strong and long term relationships with a well diversified marquee customer base STATE-OF-THE-ART Multiple, automated manufacturing facilities with zero liquid discharge and strong focus on EHS A ויויויויויד PROMOTERS Technocrat promoters supported by an experienced workforce with extensive domain knowledge FORMULATION Unique, innovative, sustainable and cost- effective catalytic manufacturing process STATISTIC Strong and consistent financial performance Clean Science 11#13STEADFAST FOCUS ON RESEARCH & DEVELOPMENT Pioneered commercialization of catalytic reactions Research and Development team's focus areas Clean Science Enhance our existing catalyst Develop products with high demand systems to further optimize yield 2 Expand product portfolio in the performance chemical segment 3 which are produced by limited and selectivity manufacturers globally Hydroxylation Grignard Reaction COMPETENCY ACROSS ~10+ CHEMISTRIES Hydrogenation Chlorination Oxidation Polymeric Reaction Alkylation Esterification Catalysis Halogenation BACKED BY DIVERSE TECHNOLOGY Continuous flow reaction Vapour phase reaction Tri-phasic reaction Fixed bed reaction LED BY EXEMPLARY R&D TEAM March 2018 1 PhD 22 scientists March 2023 7 PhD 90 scientists 4 independent R&D labs with pilot facility 12#14COHESIVE AND TECHNOCRAT PROMOTERS Strong visibility on longevity of Promoters' engagement in the business ASHOK BOOB Managing Director Key functions: Projects, Manufacturing Capabilities Over 27 years of work experience in the chemical industry. Previously worked as an Executive Director at Mangalam Drugs and Organics Ltd. Bachelor of Chemical Engineering - Institute of Chemical Technology, Mumbai, India (formerly known as UDCT) SIDDHARTH SIKCHI Executive Director Key functions: Marketing, R&D Over 17 years of experience in the chemical industry. Bachelor of Chemical Technology - Institute of Chemical Technology, Mumbai, India (formerly known as UDCT) Master of Science in Organic Chemistry - University of Manitoba, Canada. KRISHNA BOOB Executive Director Key functions: Public relations, Purchase Over 22 years of expertise in the chemical industry. Previously, worked as an Director at Mangalam Drugs and Organics Ltd. Bachelor of Pharmacy - University of Mumbai, India Over 7 years of work experience in the chemical industry. Bachelor of Chemical Engineering - Pune University, India PARTH MAHESHWARI President MBA - Babson College, USA Key functions: Business operations Promoters' sole business interest remains Clean Science and Technology with 75% stake Clean Science 13#15ROBUST CORPORATE GOVERNANCE Distinguished Board of Directors and reputed financial market participants underscore sound governance PROFILE OF NON-EXECUTIVE, INDEPENDENT DIRECTORS ON THE BOARD PRADEEP RATHI Chairman and Non-Executive Director B.Sc, M.S. (MIT, USA) MBA (Columbia, USA) Chairman Sudarshan Chemicals PROF. G. D. YADAV Non-Executive, Independent Director B.Chem. Engineering, Ph.D Technology Sanjay Kothari Non-Executive, Non-Independent Director B.Com (University of Calcutta) Member of ICAI and ICSI KEVAL DOSHI Non-Executive, Independent Director B.Com. (University of Mumbai) Member of ICAI Erstwhile Partner at Ernst & Young LLP MADHU DUBHASHI Non-Executive, Independent Director PG in Business Administration (IIM Ahmedabad) Balanced board ensures transparency and accountability Highly experienced and diversified non-executive directors, are also board members of other reputed listed companies Mr. Pradeep Rathi, Prof. G. D. Yadav, and Mr. Sanjay Kothari have been Board members for over a decade More than 1/3rd Board members are independent Non-executive directors form majority of all committees Separate Chairman & Managing Director Clean Science 14#16CONTINUED COMMITMENT TOWARDS SUSTAINABILITY AND ESG Sustainability and ESG initiatives are embedded in our long term growth strategy ENVIRONMENT EMPATHY (E) Utilize resources efficiently, reduce waste and minimise emissions as part of our sustainability commitment We aim to plant more than 11,000 trees over the next three years 17.4 MW of solar capacity. Share of renewable energy in power consumption at 55%. Reduced fresh water consumption by 14% and GHG emissions (Scope 1/Scope 2) by 7% over the last 3 years SOCIAL RESPONSIBILITY (S) ➤ Total contribution towards CSR activities during last 3 years is INR 12.3 crore ➤ Health, safety and wellbeing of employees is integral part of all our activities Continual improvement in safety measures have resulted in zero casualties till date ➤ Our key initiatives include regular safety audits, safety trainings and health checkups among others FOCUS ON CSR ACTIVITIES CORPORATE GOVERNANCE (G) Statutory auditors - Big 4 (BSR & Co. LLP) Internal Auditor - Big 4 (PwC India) Highly experienced, competent and balanced Board driving corporate ethics and values > Long term & short term ratings by CRISIL are AA- (Stable) and A1+ respectively No auditor qualification or re- statements of financial statements till date FOCUS ON GOVERNANCE FOCUS ON SUSTAINABILITY COMPART GreenCo Certificate TOGETHER FOR SUSTAINABILITY Together for Sustainability ecovadis Ecovadis Vocational Skills Environment Sustainability Medical Relief Audit Committee Nomination And Remuneration Committee Stakeholders Relationship Committee Reduce Recycle Reuse Healthcare Education Risk Management Committee Corporate Social Responsibility Committee Clean Science 15#17ADVANCED MANUFACTURING FACILITIES DESIGNED BY IN-HOUSE ENGINEERING TEAM 3 independent functional units at Kurkumbh Industrial Area, Maharashtra with dedicated lines for each product CLEAN SCIENCE & TECHNOLOGY P. LTD क्लिन सायन्स अॅन्ड टेक्नॉलॉजी प्रा. लि. UNIT 1 7 plants Total area - 30,000 sq.m UNIT 2 4 plants Total area - 23,337 sq.m UNIT 3 5 plants Total area - 40,343 sq.m NO plant closure notice received from pollution control board All Units are ISO 9001, ISO 14001 and ISO 45001 certified Sustainable processes ensures zero liquid discharge (ZLD) facility Multiple dedicated plants for key products. To that extent, each plant is immune to challenges in other plants Independent plants for catalysts Clean Science Each unit has a separate R&D facility, warehouse, engineering and utility section Construction for 100% owned subsidiary Clean Fino-Chem Limited (CFCL) on track. 16#18STRONG FINANCIAL PERFORMANCE Resilient performance demonstrated over business cycles maintaining a debt free balance sheet REVENUE CAGR of 24% EBITDA & EBITDA% PAT & PAT% EBITDA CAGR of 31% PAT CAGR of 33% 393 419 512 685 936 136 185 259 300 403 98 140 198 229 304 44% 43% 51% 44% 35% 33% 33% 39% 25% 33% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ROCE RONW Net FA & Net FA turnover(x) 50.8% 58.5% 73.9% 51.5% 49.8% 35.9% 40.8% 36.7% 29.7% 29.8% 127 166 186 296 427 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 3.1x 2.5x 2.8x 2.3x 2.2x FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Note: ROCE = EBIT (ex. Other income)/capital employed (Gross FA + Working Capital); RoNW = PAT as % of net worth Net Fixed Asset Turnover = Revenue from Operations/Net Fixed Assets; Net Fixed Assets include Property, plant and equipment, Right-of-use asset & Intangible Assets (Nos. in INR crore) Clean Science 17#19KEY GROWTH LEVERS Strategic initiatives and investments aimed at long term sustainable growth FOCUS ON ESG AND SUSTAINABILITY Capitalise on our core philosophy of clean and green chemistry to address opportunities arising from the shift in demand to sustainable chemistry. STRENGTHEN IN INDIA AND EXPAND GLOBALLY Focus on import substitution opportunities in India and add new export customers across geographies + " 5 M 'ཞུ་ OUR KEY GROWTH DRIVERS NEW PRODUCT DEVELOPMENT Strategic investments towards developing products for new range of speciality chemicals that find applications across diverse and fast growing end user industries SIGNIFICANT GREENFIELD CAPEX Planned capex on track for commercialising new series of products Clean Science ADD NEW COMPETENCIES Adding new chemistries and process technologies with significant focus on high value products that limited manufacturers produce globally 18#20THANK YOU For further information, please contact: PRATIK BORA Email: [email protected] Clean Science Clean Science and Technology Limited Website: https://www.cleanscience.co.in/