#1KRBLLimited GOD OF GRAINS Investor Presentation Q4 and FY19#2Safe Harbor KRBL Limited This presentation contains statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to KRBL Limited and its affiliated companies ("KRBL") future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. KRBL undertakes no obligation to periodically revise any forward looking statements to reflect future/ likely events or circumstances. Q4 and FY19 Investor Presentation#3KRBLLimited Q4FY19 & FY19 Performance https://www.youtube.com/watch?v=ft08luxERIO#4Q4FY19 & FY19 - Standalone Financials (1/2) Revenue from Operations 876 Q4 - YoY 1,196 3,246 FY - YOY 4,120 (Rs. In Crore) Q4FY18 Q4FY19 FY18 FY19 EBITDA (Rs. In Crore) PBT (Rs. In Crore) Q4 and FY19 Investor Presentation 210 232 819 865 Q4FY18 Q4FY19 FY18 FY19 682 733 196 162 Q4FY18 Q4FY19 FY18 FY19 • KRBLLimited Q4FY19 revenue from operations at Rs. 1,196 cr. as compared to Rs. 876 cr. in Q4FY18; a growth of 36.6% Y-0-Y. Highest ever FY19 revenue from operations at Rs. 4,120 cr. as compared to Rs. 3,246 cr. in FY18; a growth of 26.9% Y-0-Y. Q4FY19 EBIDTA at Rs. 232 cr. (Margins at 19.4%) as compared to Rs. 210 cr. (Margins at 24.0%) in Q4FY18; a growth of 10.5% Highest ever EBITDA at Rs. 865 cr. (Margins at 21.0%) for FY19 as compared to Rs. 819 cr. (Margins at 25.2%) for FY18; a growth of 5.6% • Q4FY19 PBT at Rs. 196 cr. (Margins at 16.4%) as compared to Rs. 162 cr. (Margins at 18.5%) in Q4FY18; a growth of 20.6% PBT of Rs. 733 cr. (Margins at 17.7%) for FY19 as compared to Rs. 682 cr. (Margins at 20.8%) for FY18; a growth of 7.5% 4#5Q4FY19 & FY19 - Standalone Financials (2/2) 96 PAT (Rs. In Crore) Q4 - YoY 137 462 FY - YOY 503 Q4FY18 Q4FY19 FY18 FY19 5.81 21.38 19.62 4.08 EPS (In Rs.) Inventory Position (Rs. In Crore) Q4 and FY19 Investor Presentation Q4FY18 Q4FY19 3,129 2,462 FY18 FY19 Mar '18 Mar '19 • KRBLLimited Q4FY19 PAT at Rs. 137 cr. (Margins at 11.4%) as compared to Rs. 96 cr. (Margins at 10.9%) in Q4FY18; a growth of 42.4% Highest ever FY19 PAT at Rs. 503 cr (Margins at 12.2%) as compared to Rs. 462 cr. (Margins at 14.2%) for FY18; a growth of 9.0%. Q4FY19 EPS at Rs. 5.81 as compared to Rs. 4.08 in Q4 FY18. FY19 EPS at Rs. 21.38 as compared to Rs. 19.62 in FY18. Inventory position as of March 2019 increased to Rs. 3,129 cr as compared to Rs. 2,462 cr in March 2018. 5#6FY19 vs. FY18 - Business update - Standalone Financials 4% FY18 3% FY19 Segment Revenue 40% ₹ 3246 cr 45% 56% ₹ 4120 cr 52% KRBL Limited Contribution of Export Business increased from 40% to 45%. Agri - India Agri - Export Energy FY18 Rice Sales Qty (MT) Rate Value (in Rs./MT) (Rs. In Cr.) Qty (MT) Indian Market Sales 312,570 53,333 1,667 352,829 Export Market Sales 168,840 76,991 FY19 Rate Value (in Rs./MT) (Rs. In Cr.) 55,244 1,949 1,300 218,320 84,369 1,842 • • Indian Market Rice Sales increased by 13% in quantity terms, and 17% in value terms during the quarter, as compared to same period last year. Price realization, in Indian Market sales during the quarter increased by 3.6% to Rs. 55,244 per MT as compared to Rs. 53,333 per MT in the same period previous year. Export Market Rice Sales increased by 29% in terms of quantity and 42% in terms of value. Price realization, in export market rice sales during the quarter at Rs. 84,369 per MT as compared to Rs. 76,991 per MT in the same period previous year. Q4 and FY19 Investor Presentation 6 10#7Strong financial indicators... Total Debt to Equity Ratio Interest Coverage Ratio 0.55 0.52 12.22 10.68 Mar'18 Mar'19 FY 18 FY 19 2.05 Current Ratio Mar'18 Quick Ratio* 2.03 2.06 2.07 Mar'19 Mar'18 Mar'19 #Based on consolidated financials *Quick Ratio is calculated after including inventory since inventory is quickly convertible in cash. Q4 and FY19 Investor Presentation 7#8KRBLLimited Q4FY19 - Key Marketing Initiatives https://www.youtube.com/watch?v=ft08luxERIO#9360-degree campaign Special days deserve something special on your plate. Hence on the festive occasion of Diwali, KRBL launched degree campaign to promote the flagship product from its portfolio - INDIA GATE CLASSIC Q4 and FY19 Investor Presentation 1 CLASSIC INDIA GATE BASMATI RICE ISS TYOHAAR SIRF CLASSIC BANEGA CELEBRATION PACK INDIA GATE BASMATI RICE CLASSIC 360 Campaign Reach KRBL Limited TV Radio OOH Digital Retail Print PDSM 2 YEARS AGED RICE 6#10Campaign Presence & Impact Campaign Presence or Uld or Physically Challenged TYOHAAR SIRE 609 OOH units in 22 CLASSIC BANEGA P CLASSIC Cities across India CLASSIC 15,000+ Retail outlets covered by POSM RAMA Campaign Impact KRBL Limited 3,860 spots across 51 channels 47% increase in total Retail Penetration of IG Classic 16,000+ spots 11:30 across 20 cities PROVISION STORE 500 Premium Outlet Branding You Tube Q4 and FY19 Investor Presentation CLASSIC ISS TYOHAAR SIRF CLASSIC BANEGA Monthly Billing increased by 125% in 6,000 Outlets 4 crore + impressions on digital space Monthly conversion increased by 19% Inserts in over 50 national magazines and dailies India Gate Classic Sales increased by 70% in Secondary Market 10#11Impact Associations vivo Camera & Music வழங்கும் BIGG BOSS 14 பிரபலங்கள், 30 கேமராக்கள், 100 நாட்கள், ஒரே வீட்டில் INDIA GATE BASMA CE ⭑VIJAY Q4 and FY19 Investor Presentation कसौटी ज़िंदगी के Partner INDIA GATE BASMATI RICE World Television Premiere Padmavat 0 colors Helo PRESENTS INDIA GATE BASMATI RICE ಬಿಗ್ ಬಾಸ್ CLASSIC CO-POWERED BY munch खूब लड़ी मर्दानी झाँसी की रानी INDIA GATE BASMATI RICE INDIA GATE Baka ch பத்மாவத் KRBL Limited 11#12KRBLLimited Company Overview https://www.youtube.com/watch?v=ft08luxERIO#13KRBL Limited A leading branded FMCG company. India's largest producer and exporter of Basmati rice Established in 1889, KRBL is India's first integrated rice company. Present in the entire value chain from seed development and multiplication, contact farming, production to marketing. #1 - Basmati rice producer in India, Basmati rice exporter, Rice miller. FY19 Financials (Standalone Financials) Business Segments Agriculture comprising of agricultural commodities (96% of the total revenue). Energy Power generation from Wind and Solar Power (4% of the total revenues). • Products Basmati & Non-basmati rice. • 'Healthy food' segment - Sprouted Brown Rice, Quinoa, Chia Seed, Flax Seed. • Milling by-products like bran oil, furfural and furfural alcohol, and de- oiled cakes. EBITDA Revenue * 4,134 cr. EBITDA * 865 cr. Margin 21% PAT * 503 cr. EPS 21.38 Markets India 35% market share in the branded Basmati rice segment (value). Exports to 81 countries. Strong presence in the Gulf Cooperation Council (GCC) countries. • 'India Gate' has 76% market share in the 'premium' category (on RSP basis) in the GCC markets. Q4 and FY19 Investor Presentation • Manufacturing At 195 MT/hour, KRBL has the largest rice milling capacity in the world. • 4 rice processing/grading plants which are based in Delhi, Punjab, Haryana and Uttar Pradesh. • Modern packaging and foodgrain warehousing facility at Alipur and Barota units. . • Brands Multi-brand presence in Indian & International markets. · Brand names include India Gate, Doon, Nurjahan, Bemisal and Unity among others. Flagship Basmati Rice brand 'India Gate' commands a premium in both international and Indian markets. NEW Be-Sealable Pick CELEBRATION PACK 1 kg net weight INDIA GATE BASMATI RICE CLASSIC Basmati Beyond Compare 13#14A 130-year-old legacy - Evolution and key milestones 2016 Set up the fourth facility at Barota KRBL Limited 2010 Received the Halal Stock split. Face Icertification value divided from Rs. 10 to Received Rs. 1 per share ISO-9002 for the 2006 I GDR Issue of US$12m 1992 Established state of the art Basmati processing plant at Ghaziabad Uttar Pradesh 1995 Listed at BSE, Delhi Stock Exchange & Ahmedabad Stock Exchange | 2001 Gautam Budh Nagar Plant Shifted focus from oil, wheat and cotton to rice and shifted base from Lyallpur to Lahori Gate, Delhi 1993 Registered as a Public Limited Company 1998 Received ISO- 1 9002 for the Alipur, Delhi plant and I entered the Indian Market with India 1 Gate and Doon I 2004 Set up the processing, grading and packaging facility at Dhuri, Punjab 2018-19 Crossed the INR 40bn revenue mark 2003 First company to receive FDI in the Indian rice industry 2004 I Received the HACCP & SQF 1 Certification 2009 Crossed the INR 10bn revenue mark 2013 Crossed the 2017 Strengthened its green energy portfolio with total capacity of 114.35 MW in wind power, 15 MW in solar projects and INR 20bn revenue17.55 MW in biomass mark iRice mill processing ! unit certified for complying with SOP I for export of rice to China and the US I ☐☐☐ | Certifications 1889 KRBL-Incorporated in 1889 at Lyallpur, Pakistan Q4 and FY19 Investor Presentation 14#15KRBL Limited 6 Key investment highlights Opportunities in new growth segments Basmati Rice- Attractive industry 1 dynamics Undisputed leader with dominant brand positioning Robust financial performance KRBLLimited Strong manufacturing and 5 Q4 and FY19 Investor Presentation 2 distribution With a fully integrated strength 3 business model 4#161 Basmati Rice - Attractive industry dynamics KRBL Limited Basmati Rice - A niche opportunity Basmati producing regions are limited. Exclusively grown in India and Pakistan. Legally enforced regional trademark. A Geographic Indication (GI) recognition for Indian Basmati rice. Ageing in basmati (~ 18 months) is essential as it enhances the attributes of basmati by reducing moisture content, increasing aroma, length, taste and cooking results. Growth in India's Basmati production... Introduction of higher yielding and shorter duration variety has supported strong growth in Basmati production in the last two decades. New variety is increasingly adopted by farmers due to shorter growth cycle, lower irrigation requirements, and higher yields compared to other traditional varieties. Basmati rice production in 2017-18 has recovered to 9.0 MMT (1.9 million hectares) compared to 8.0 MMT (1.7 million hectares) in the previous year. . Coupled with Indian consumption drivers Growing urbanisation Rising income levels Organized Retail - Spread of modern trade Steadily changing trend of consumers opting for quality and branded rice India's Basmati exports 1 - continuously rising demand Demand Supply dynamics in GCC importing countries 1 35,000 14,000 4.04 4.00 4.05 3.86 4.00 3.75 3.70 4.00 3.46 30,000 12,000 3.17 25,000 3.00 2.33 2.00 1.00 H 10,000 3.00 20,000 8,000 1.90 15,000 2.00 1.70 1.79 1.62 1.58 1.65 6,000 1.41 1.44 1.20 1.24 10,000 4,000 1.00 5,000 2,000 0.00 0 0.00 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19* I Million Tonnes Crore I Million Tonnes Crore Q4 and FY19 Investor Presentation 1 Source: APEDA, Agricultural and Processed Food Products Export Development Authority *2018-19 Data from APEDA for the period Apr 18 - Feb 19. 16#172 KRBL is the undisputed leader of Indian Rice Industry INDIA GATE - The flagship brand Largest selling brand of India. Well-established in both the Indian market as well as the key International markets. Dozens of variants aimed at different consumers and comes in a wide range of formats/sizes. INDIA GATE INDIA GATE KRBI KRBL Limited Top 5 brands (by value) Market share (%) in India Market share (%) in Metro Market Market share (%) in Town class I 35 26 7 4 3 36 24 7 6 4 40 25 6 4 3 BASMATI RICE India Gate Peer 1 Peer 2 Basmati Peer 3 Peer 4 Rice Brand India Gate Peer 1 Peer 2 Peer 3 Basmati Rice Peer 4 India Gate Peer 1 Peer 2 Peer 3 Peer 4 Basmati Brand Rice Brand INDIA GATE O BASMATI RICE CLASSIC BASMATI RICE Super Basmati Beyond Compare Q4 and FY19 Investor Presentation Market share (%) in Rural areas Market share (%) in Traditional markets 45 20 7 3 3 33 25 9 4 2 Weighted Value Distribution* in Packaged Basmati Rice Category (in %) 98 94 57 53 29 India Gate Peer 1 Peer 2 Peer 3 Peer 4 Basmati 1kg Rice India Gate Peer 1 Basmati Rice Peer 2 Peer 3 Peer 4 Brand Brand India Gate Basmati Rice Brand Peer 1 Peer 2 Peer 3 Peer 4 (Source: AC Nielsen MAT March, 2018) * Weighted Value Distribution (percentage of stores that sells our products based on their weighted importance), 98% of the modern trade stores sell our packaged Basmati Rice products. 17#182 The #1 brand in several lucrative International markets India Gate #1 Indian Basmati brand in Canada both in Ethnic and Modern Trade. India Gate and Bab Al Hind Leadership in Kuwait with 19.7% market share. India Gate #1 Premium Indian Basmati brand in Bahrain and Lebanon. North Africa Leadership in North Africa with a total import share of 11% with KRBL brands. Nurjahan #1 brand Dominance in South Africa with. a total import share of 29% Source: Retail Data, Distributors Data, APEDA Data Q4 and FY19 Investor Presentation KRBL Limited India Gate & Nurjahan #1 & #2 Indian Basmati brand in Qatar with 27% market share. India Gate Dominance in Oman with India Gate and Nurjahan in Indian Basmati Segment. Exports to 81 countries India Gate has 76% market share in the 'premium' category (on RSP basis) in the GCC markets. India Gate's Classic variant is the most preferred brand in Saudi Arabia, Kuwait, UAE, Qatar, Bahrain. India Gate and Bab Al Hind #2 in Indian Basmati white rice segment in Saudi Arabia India Gate #1 Indian Basmati brand in UAE: 35% market share; Next peer at 11% market share. India Gate India Gate is the most aspirational brand in Singapore and Hong Kong with a total import share of over 9%. India Gate #1 Dominance in the Australasia region. India Gate # 1 brand in Australia and New Zealand with a total import share of 26%. 18#192 A multi-brand strategy addressing all segments and markets Brands catering to bottom of pyramid consumers to super premium consumers INDIA GATE BASMATI RICE DOON BASMATI RICE INDIAN FARM BASMATI RICE Taj Mahal LION Basmati Rice Unity Bemisal BASMATI Necklace Premium Rice BASMATI RICE Wisam BASMATI RICE ماركة التلفون Telephone Rice Train LOTUS BASMATI RICE Nur Jahan BASMATI RICE Q4 and FY19 Investor Presentation AARATI PREMIUM RICE CELEBRATION PACK -> INDIA GATE BASMATI RICE CLASSIC DOON BASMATI RICE Premium 14 INDIA GATE INDIA GATE BASMATI RICE Premion DOON BASMATI RICE Tibar Wissam BASMATI RICE INDIA GATE INDIA BADMATER Parboiled GATE Brown 25 KRBL Limited Nur Jahan BASMATI RICE ELONGATION SERVES MORE LONGER HOLDING TIME INDIAN FARM BASMATI RICE أرز الوسام 19#202 With continued focus on branding and consumer engagement Focussed on small, sweet habits and customs of India Big Boss INDIA GATE BASMATI RICE 2 YEARS AGED RICE India i Puraam Aadat INTE INDIA GATE BASMATI RICE Super DADI KI PURANI RECIPE AZMAANE KI AADAT BIGG BOSS Loved the Quinoa Kheer by Suja? Retweet with A #QuinoaOnBiggBoss KRBLLimited WORLD'S LARGEST RICE MILLERS ABASMATI RICE EXPORTERS With a 127-year heritage, KRBL Ltd. is India's first integrated rice company with a comprehensive product chain. It is not only India's largest selling basmati rice brand company, but is also recognised as the world's largest rice miller and basmati rice exporter. India ki Puraani Aadat INDIA GATE BASMATI RICE AGED RICE Traditions that matter Q4 and FY19 Investor Presentation QUINOA LF LIVING EPICUREAN GUILD AWARDS 2018 Co-powered by INDIA • KRBL Limited Brand Spends- Rice Segment. India Gate brand has the highest Advertising spends in the segment. India Gate brand is on top of the category list with a 31% share of voice on TV and a 37% share of expenditure across multi-media channels. Jashn-E-Biryani series of videos on YouTube IND GAT Jashn-e-Biryani Healthy Lifestyle- Quinoa.life 'Gulfood 2018', QUINDA Dubai World Trade Centre LIFE Say Hi to Quinoa QUENDA INDIA Basmati Life Tastes Better For FY18 Corporate Master Chef challenge 100% Natural QUINOA PRESENTS CORPORATE MASTERCUFE 20 20#213 • Strong manufacturing capabilities, early investments for capacity KRBL Limited Manufacturing and Warehousing capability Manufacturing and procurement facilities in close proximity to the Basmati growing regions. Production capacity at 195 tonne per hour (TPH), the largest in the industry. Sufficient capacity for future growth, limited capex requirements. Long-term working relationship with Bühler since 1997. First- mover advantage in accessing the latest technology for the paddy processing industry. MM LINE 1 Location Processes Production Storage capacity capacity (MT/Hr) (MT) Gautam Budh Nagar, Uttar Pradesh Rice processing, grading and packaging 45 405,000 Dhuri, Punjab Rice processing, grading and packaging 150 515,000 Alipur, Delhi Grading and packaging 20,000 Barota Sonipat, Haryana Grading and packaging 60,000 Q4 and FY19 Investor Presentation Warehousing space with the most hygienic storage conditions, ongoing fumigation and safe custody of cargo. Equipped with comprehensive systems that ensure maximum protection from ground, moisture, humidity, bird droppings, rodents and infestation through micro-organisms and insects. 21#223 Distribution network strength - Pan-India and International KRBLLimited Tie-ups with major online players FRESH CO. Fresher. Cheaper. bb big basket amazon India's largest online supermarket flipkart.com G GROFERS Paytm mall I Pan-India retail and wholesale network BIG BAZAAR Reliancefresh Making India Beautiful more. ADITYA BIRLA GROUP D Mart easyday STAR HyperCITY METRO Cash & Carry spencer's MARKET ✓ Big Apple * Bazaar⭑ VISHAL MEGA MART™ Nmart Distribution tie-ups with large retailers globally Walmart coles Al Meera HYPERMARKET & SUPERMARKETS SHOPRITE Woolworths COSTCO الميرة هايبر ماركت وسوبر ماركت WHOLESALE Spinneys The fresher experience HyperPanda هایبرینده RETAILS LuLu H-E-B Carrefour In its modern trade channel, enhanced presence to 7,530 stores*. Continuously improving same-store sales and category share. *As of March 2018 Q4 and FY19 Investor Presentation QUINOA SEED E نوعيه عاليه لا تفاري Life Tastes Better Rising opportunity from the online distribution network. Dedicated team of professionals to build capabilities in e-commerce channel. 22 222#234 Fully integrated operations; present in entire value chain Integrated value chain - Presence across the entire value chain enables controlling costs and quality Seed development A leading rice player to manufacture Basmati seeds. and a seed grading plant. 1. Procurement An extensive seed multiplication 2. Grading 3. Contact Farming Farmers are hand held through every step of the crop cycle. Pre and post harvest management seminars to improve understanding of grain development. Q4 and FY19 Investor Presentation Ageing 4. Processing 5. Distribution 6. Marketing KRBL Limited Value-added products Manufacturing value-added products from the by-products generated in the milling plants. Power Generation A diversified power generator with interest in Biomass, Wind and Solar Power. Total installed capacity of 146.90 Mw. Captive power and sale of excess power. 23#244 Research-based approach and quality control focus Seed Development Entered into Seed Development & Multiplication (QSDIP program). • Dedicated team of agricultural experts who continuously research and develop new seeds with better yield. Developed seeds distributed to farmers under contact farming. Collaboration with Institutions Among the first in the industry to form an association with Pusa Institute, for developing better varieties of Basmati. Associations with leading agri-universities such as Indian Agricultural Research Institute to use studied and tested methods for quality. Applied for patent on nutritional enhancement of rice through processing. Q4 and FY19 Investor Presentation IP KRBL Limited Strong R&D focus to improve quality Extensive research on various parameters such as chemistry, quality and ageing of Basmati rice to constantly improve quality. Team of experienced rice professionals and farmers, who blend their traditional knowledge with modern technology. Constant improvement of process and enhancement of operational efficiency. Endorsement of our strong quality thrust Certified/registered by: FSSC 22000 issued by SGS SGS HACCP registered SQF Code Edition 7.2 issued by SGS USFDA registered BRC Certification issued by SGS ISO 9001: 2000 certification 24 24#254 Deep-rooted relationships with farmers, nurtured over decades Contact Farming • A systematic process developed by KRBL to reach out to farmers at the field level and assist them from the time of procuring agri-inputs/seeds till the time the product is ready to be sold in the markets. Hand-holding the farmer every step of the way; both through On-field and Off-field support. On-field support Extension officers are assigned agri-extension routes in specific areas in Uttar Pradesh, Uttarakhand and Punjab. Each route comprises of 40-50 villages in a district. Extension officers tour their designated districts and carry out agricultural extension activities such as: ✓ Advising farmers on choice and treatment of seeds, nursery and field preparation, cultivation ✓ Provision of quality seeds for cultivation ✓ Harvest and post-harvest assistance Integrated Pest Management support - Pest identification, control, monitoring and prevention. Q4 and FY19 Investor Presentation • KRBLLimited Off-field support Dissemination of information about agricultural practices, modernization and crop management to the farmers without imposing any terms and conditions on them. Inform farmers of latest agricultural techniques, modern cultivation technology, new varieties of pesticides and high yielding and disease-resistant varieties of seeds. Promote the use of hydroponic technology amongst farmers through a partnership between KRBL and Ayurvet to engage in soil- less cultivation of paddy nursery. Participation in farmer meetings conducted by Kisan Vigyan Kendras. Organise in-house Kisan Mela with partners such as Bayer Crop Science, Ayurvet and Mahindra etc. 25#264 Value-add from by-products of milling plants KRBL Limited . • • Main by-products generated are Rice Bran and Paddy Husk. Rice Husk is an excellent source of heat energy. Sold as a fuel to produce steam and electric power. Paddy husk is used in the manufacture of rice husk boards, silica gel and manufacture of furfural. Dhuri has a 3000 TPA capacity Furfural plant and a 3000 TPA capacity plant to produce Furfuryl Alcohol from Furfural. Approx. 25% of Furfuryl Alcohol demand in India is met by KRBL; the rest is met by imports. Dhuri also has a 250 TPD capacity solvent extraction plant to produce rice bran oil which is sold to various oil refineries who refine it and sell it as an edible oil. Liquid Glucose is produced from smallest broken raw milled rice. KRBL operates a liquid glucose plant with a capacity of 25 TPD. T . Integrating best sustainable practices, contributing to revenue Revenues from sale of Rice Bran Oil increased by 65% in FY19. First full year operation of Furfural oil plant (commissioned in FY17) The power generation business consists of biomass, solar and wind energy plants. KRBL uses rice husk that's generated in its facilities to produce non-conventional power, to meet its captive power requirements. The Biomass division meets the internal power requirements at Dhuri and Ghaziabad plants. This division produces 17.6 MW, on account of the natural by products of rice-milling - Bran Oil, Furfural etc. Revenues from D Oil Cake business increased by 62% . Any excess energy generated in Biomass is sold to the Punjab State Electricity Board. • Wind power plant capacity of 114.35 MW and Solar power plant capacity of 15 MW. Q4 and FY19 Investor Presentation Power sales in FY19 increased by 4%. First full year operation of 27.3 MW wind power plant at Gujarat (commissioned in FY17) 26#275 Robust financial performance, fundamentals comparable to FMCG standards Revenue 1&2 (in Crores) and Capacity Utilization 3 (%) EBITDA¹ (in Crores) and EBITDA Margin (%) KRBL Limited 5,000 100% 1,000 40% 4,120 865 4,000 80% 792 3,363 3,160 3,148 3,247 800 30% 2,910 654 3,000 60% 56.0% 600 442 532 24.3% 20% 508 2,000 52.1% 40% 47.5% 20.7% 21.0% 46.0% 43.0% 39.4% 16.6% 1,000 20% 400 15.2% 14.8% 10% 0 FY14 FY15 FY16 FY17 Revenue FY18 Capacity Utilization PAT¹ (in Crores) and PAT Margin(%) FY19 90 0% 200 FY14 FY15 FY16 FY17 FY18 FY19 EBITDA EBITDA Margins ROACE and ROAE 1&4 (%) 3.1X 2.6X 2.3X 0% 90 1.7X 1.6X 1.6x Debt/ EBITDA 600 20% 503 30% 27.1% 500 434 15% 399 25% 23.4% 400 13.3% 322 12.7% 12.2% 20% 10% 293 20.8% 20.7% 20.7% 20.1% 20.6% 21.0% 21.0% 20.8% 300 255 10.0% 18.6% 15% 8.6% 16.9% 5% 200 10% 100 FY14 FY15 FY16 FY17 FY18 FY19 PAT PAT Margins 90 5% 0% 0% FY14 FY15 FY16 FY17 FY18 FY19 ROACE ROAE Note: 1 2 3 Q4 and FY19 Investor Presentation Based on Consolidated Financials Based on revenue from operations which does not include other income Indicates capacity utilisation of the rice business. Calculated basis the plants running on an average for 300 days a year and on an average of 20 hours per day 4. ROACE: Return on average capital employed (EBIT / Average of previous and current fiscal year's capital employed). ROAE: Return on average equity (PAT / Average of previous and current fiscal year's equity capital) 27#285 Continuous deleveraging, improving profitability 1.50 1.00 1.12 0.50 0.80 Total Debt to Equity Ratio 16.00 12.00 8.00 0.58 0.55 0.55 0.52 5.63 5.59 0.00 FY14 FY15 FY16 FY17 FY18 FY19 Q4 and FY19 Investor Presentation 2.50 Current Ratio 4.00 Interest Coverage Ratio KRBL Limited 12.22 10.68 9.64 7.97 0.00 FY14 FY15 FY16 FY17 FY18 FY19 2.06 2.05 2.07 2.00 1.71 1.77 1.43 1.50 1.00 0.50 0.00 FY14 FY16 FY17 FY18 FY18 FY19 28#295 Reduction in cash conversation cycle despite heavy procurement #Based on standalone financials (in Crores) Q4 and FY19 Investor Presentation -Inventory -Net Debt 3,129 2,462 1,417 1,289 1,424 1,176 220 0 H1FY18 H2FY18 H1FY19* H2FY19 -Days Receivable -Days Payable -Inventory Days 305 288 275 KRBLLimited Net debt starts rising with the commencement of procurement of paddy in H2 every year and becomes insignificantly low by end of H1 of the next financial year. This is a cyclical phenomenon which results in near zero debt at the end of H1 every year for the company. The Inventory days follows the above trend. 28 Payable days has at 17 days in H2FY19 as compared to 16 days in H2FY18. Receivable days at 28 days in H2FY19. 255 28 29 28 23 16 17 H1FY18 11 H1FY19 H2FY19 * H2FY18 As on Sep'18, KRBL is at zero debt with cash surplus of INR 107cr. 29#306 Capitalising on opportunities in new growth segments INDIA GATE CHIASEED Net Weight: 1 LBS. (454 Handy RE-SEALABLE Pick INDIA GATE SPROUTED BROWN BASMATI RICE براعم ارز البسمتي البني Q4 and FY19 Investor Presentation 1 KRBL Limited INDIA GATE FLAXSEED 454 INDIA GATED BROWN BASHATI RICE 12.MIN ACTIVE HEALTH SPECIAL RICH DIETARY FIBER • Constantly innovating on our offerings to the ever changing consumer preferences. Moving up the brand value chain. Launch of new products in 'Super Premium', 'Heath food' and 'Specialised' categories. Evolving into a maker of 'healthy' and consumer centric food products. Producer of 'healthy' food products to meet the increasing trend of consumers wanting to have healthy and nutritionally superior food. Handy RE-SEALABLE Pack Good Source of Fibre INDIA GATE QUINOA Cceptional Sece of Vegetarian rel INDIA GATE GROWN RICE WEIGHT WATCHERS Special WEAK ROWS H 100% NATURAL DUNDA MANCES METALOM Net Weight: 2 LBS (90) NE SEALABLE Pek INDIA GATE Sweet Indulgence -Operiality for SSD- Delicious No INDIA GATE Jeera RICE net weight 1 kg 30#31Awards and accolades KRBLLimited 2018 The Agriculture Leadership Award for dominant position in agro exports, pioneering work in establishing the Indian brand globally and support and financial empowerment of farmers 2017 Golden Trophy by APEDA for outstanding export performance for the year 2015-16 2016 Guinness World Record for display of the heaviest bag of India Gate Basmati Rice (weighing 557 kg) in Gulf Food Exhibition at Dubai World Trade Centre, Dubai, UAE 2015 World Greatest Brand 2015, ASI, & GCC, awarded by URS and Process reviewed by PWC 2015 Mr. Anil Kumar Mittal was awarded the prestigious Silver Jubilee Award by the National Academy of Agricultural Sciences, India 2010-14 Recipient of the Concor Exim Star Award in the northern region for exceptional financial performance and an extensive export network 1997-2017 APEDA's prestigious Export Award for many years 2010 Emerged as the Top Green Company in the list of 25 most popular food companies in India by Greenpeace, according to their policy on Genetically Modified (GM) foods 2007, 2008 Business Sphere Award for the World's Largest Rice Miller 2005-08 Awarded "Mera Brand", by Consumer World Awards as India's most preferred Basmati brand Q4 and FY19 Investor Presentation Note: 1 APEDA - Agricultural and Processed Food Products Export Development Authority 31#32Highly experienced leadership team recognised by industry KRBLLimited Anil Kumar Mittal Chairman and • Visionary of the company, provides strategic direction to all aspects of the business • Over 44 years of experience in the rice industry Managing Director .• Founder and former president of All India Rice Exporters Association • Arts graduate from Delhi University Recipient of the Silver Jubilee Award from the National Academy of Agricultural Sciences, India Arun Kumar Gupta • Expert on Basmati paddy supply chain management and paddy milling technology Joint Managing Director Over 36 years of experience in the rice industry • • Anoop Kumar Gupta • Joint Managing Director . Executive member of the Basmati Rice Farmers & Exporters Development Forum Commerce graduate from Delhi University Oversees strategy and financial operations Over 34 years of experience in the rice industry Former Executive Committee Member of the All India Rice Exporters Associations • Science graduate from Delhi University Priyanka Mittal • Oversees brand management of all KRBL brands Whole Time Director Handles corporate affairs and public engagement at the India and international level Rakesh Mehrotra Chief Financial Officer • • Over 18 years of experience in the field of international marketing and sales management Co-chairperson of Agri Committee, PHD Chamber of Commerce and Industry Chairperson of Federation of Indian Export Organizations (FIEO), Northern Region, Ministry of Commerce, and Government of India Owner President Management programme from Harvard Business School, BS in Business Management from University of Southern California, LA Special Advisor to the Women Political Leaders Global Forum (formally known as Women in Parliament, a European Parliament Initiative) Over 31 years of experience in finance Previously worked with some of the leading corporates such as Surya Group, Lakhani Group, Sanjay Dalmia Group, Mafatlal Group and Onida Group Chartered Accountant from ICAI and Commerce Graduate from BHU Q4 and FY19 Investor Presentation 32#33Shareholding Pattern 18.3% Q4 and FY19 Investor Presentation 15.14% 6.8% 1.0% Promoters 58.8% ■ Bank, FI, Insurance & Mutual Fund Foreign Portfolio Investor NRI/OCB/Foreign National/QFI ■Public/ Other As of 31st March, 2019 KRBL Limited 33#34Investor Contact: Rakesh Mehrotra Chief Financial Officer Tel: +91-120-4060 300 E-mail: [email protected] KRBLLimited KRBL Limited Regd. Office: 5190, Lahori Gate, Delhi 110 006, INDIA. Tel. +91-11-23968328 Fax: +91-11-23968327 CIN No.: L01111DL1993PLC052845 www.krblrice.com https://www.youtube.com/watch?v=ft08luxERIO 34