Anupam Rasayan India Ltd. Q4FY24 & FY2024 Investor Presentation PDF

ANUPAM RASAYAN INDIA LTD. R ARILSLDSTX20240518013 Date: May 18, 2024 To, To, BSE Limited, National Stock Exchange...

ANUPAM RASAYAN INDIA LTD. R ARILSLDSTX20240518013 Date: May 18, 2024 To, To, BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, ‘Exchange Plaza’, C-1, Block-G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai -400001, India Mumbai 400051, India SCRIP CODE: 543275 SYMBOL: ANURAS Dear Sir/ Madam, Subject: Investor Presentation Pursuant to Regulation 30 and other applicable regulations, if any, of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith a copy of the ‘Investor Presentation’ in respect of the Audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2024, of Anupam Rasayan India Limited (the “Company”). The Investor Presentation will also be hosted on the website of the Company at www.anupamrasayan.com. We request you to kindly note the same and take into your records. Thanking you, Yours Faithfully, For, Anupam Rasayan India Limited Digitally signed by ASHISH GUPTA ASHISH DN: cn=ASHISH GUPTA c=IN o=Personal Reason: I am the author of this GUPTA document Location: Date: 2024-05-18 17:27+05:30 Ashish Gupta Company Secretary & Compliance Officer Encl.: As above Registered Office: Tel. : +91-261-2398991-95 Office Nos. 1101 to 1107, 11th Floor, Icon Rio, Fax : +91-261-2398996 Behind Icon Business Centre, Dumas Road, E-mail : [email protected] Surat-395007, Gujarat, India. Website : www.anupamrasayan.com CIN - L24231GJ2003PLC042988 Anupam Rasayan India Limited Q4FY24 & FY2024 May 2024 Quarterly Highlights 1 2 Anupam Rasayan India Limited \  3 Quarterly Financial Highlights \ Limited India Consolidated EBITDA (Incl. Consolidated PAT stood Rasayan Consolidated Total Revenue was ₹ 4,130 Mn; Other Revenue) was ₹ 1,047 at ₹ 405 Mn., margin Y-o-Y de-growth of 18% Mn.; margin stands at 25% stands at 10% Anupam Standalone Total Revenue Standalone EBITDA (Incl. Standalone PAT stood at was ₹ 3,195 Mn; Y-o-Y Other Revenue) was ₹ 849 ₹ 283 Mn., margin de-growth of 18% Mn.; margin stands at 27% stands at 9% Added 6 new products in Q4FY24 taking total to 70 products  4 Managing Director’s Message \ Limited “Indian chemical industry including spec chem industry has faced significant headwinds India during the last year. However, despite the de-growth in the top-line, we have been able to sustain our profitability and maintain margins at 27% levels on a full year consolidated Rasayan basis. During the year, the Agro chemical industry in particular faced challenges, however our past sustained efforts in expanding our pharma and polymer portfolio have started yielding results leading to pharma contributing over 9% of revenue in FY24, up from 4% Anupam last year. We expect pharma and polymer segment each to further increase their revenue share in double digits by next year. In FY2024, we have focused on expanding our customers, products and end market applications. We have added 17 new molecules, 4 new MNCs including 2 Japanese majors and expanded contribution from polymer and pharma which going forward will lead to balanced product portfolio from end market perspective. We believe that headwinds in the industry may continue for the next two quarters. However, financial year 2025 will be a year of growth for us with our major focus on polymer and pharmaceutical space.” Mr. Anand S Desai MANAGING DIRECTOR  5 Operational Updates \ Limited India Commercialization of New Molecules – In Q4FY24, 6 new molecules were commercialized taking total to 17 new molecules Rasayan launched in FY24. Of the total 6 molecules, 5 molecules are from fluorination series. Anupam Capex Incurred – Company incurred capex of ₹4,824 Mn till Q4FY24 out of the ₹6,700 Mn announced, with balance capex to be incurred in H1FY25. Further Investment in Green Energy – Company to invest ₹593 Mn. Towards setting up of Hybrid (Solar plus wind) power plant of 9.6 MW capacity. This will result in savings of ~₹150 Mn. Per year. This, along with our existing investment in renewable energy, would translate to over 65% of Company’s electricity consumption from green sources. Preferential Issue and Repayment of Term Loans – Company repaid ₹2,490 Mn. of long term borrowings in Q4FY24 from the proceeds of the preferential issue.  6 QUARTERLY FINANCIALS Consolidated Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) Q4FY24 Q4FY23 INCOME India Revenue from Operations 4,010 4,800 Other Income 120 243 Total Revenue Rasayan 4,130 5,042 Total Revenue Growth (%) (18%) EXPENSES: Cost of Raw Materials Consumed Anupam 1,879 2,359 Gross Profit 2,131 2,441 Gross Margins (%) 53% 51% Gross Profit growth (%) (13%) Employee Benefits Expenses 170 164 Other Expenses 1,034 1,104 EBITDA (Incl. Other Revenue) 1,047 1,416 EBITDA Margins (%) 25% 28% EBITDA Growth (%) (26%) Finance Cost 261 203 Depreciation and Amortization 207 185 Profit Before Tax 579 1,028 Tax (Including Deferred Tax) 174 301 Profit for the Quarter 405 726 PAT Margins (%) 10% 14% PAT Growth (%) (44%) Note: All numbers above have been rounded-off to zero decimal.  7 QUARTERLY FINANCIALS Standalone Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) Q4FY24 Q4FY23 INCOME India Revenue from Operations 3,085 3,713 Other Income 111 180 Total Revenue 3,195 3,893 Rasayan Total Revenue Growth (%) (18%) EXPENSES: Cost of Raw Materials Consumed 1,353 1,735 Anupam Gross Profit 1,731 1,978 Gross Margins (%) 56% 53% Gross Profit growth (%) (12%) Employee Benefits Expenses 122 119 Other Expenses 871 934 EBITDA (Incl. Other Revenue) 849 1,104 EBITDA Margins (%) 27% 28% EBITDA Growth (%) (23%) Finance Cost 246 200 Depreciation and Amortization 185 168 Profit Before Tax 419 737 Tax (Including Deferred Tax) 135 224 Profit for the Quarter 283 513 PAT Margins (%) 9% 13% PAT Growth (%) (45%) Note: All numbers above have been rounded-off to zero decimal.  8 YEARLY FINANCIALS Consolidated Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) FY24 FY23 INCOME India Revenue from Operations 14,751 16,019 Other Income 302 86 Total Revenue 15,053 16,105 Rasayan Total Revenue Growth (%) (7%) EXPENSES: Cost of Raw Materials Consumed 6,144 7,036 Anupam Gross Profit 8,607 8,983 Gross Margins (%) 58% 56% Gross Profit growth (%) (4%) Employee Benefits Expenses 751 689 Other Expenses 4,049 3,981 EBITDA (Incl. Other Revenue) 4,109 4,399 EBITDA Margins (%) 27% 27% EBITDA Growth (%) (7%) Finance Cost 894 627 Depreciation and Amortization 797 711 Profit Before Tax 2,418 3,062 Share of profit of associates - 15 Tax (Including Deferred Tax) 743 908 Profit for the Year 1,674 2,168 PAT Margins (%) 11% 13% PAT Growth (%) (23%) Note: All numbers above have been rounded-off to zero decimal.  9 YEARLY FINANCIALS Standalone Profit & Loss Summary \ Limited (All amounts are in ₹ Mn) FY24 FY23 INCOME India Revenue from Operations 11,287 12,841 Other Income 259 22 Total Revenue 11,546 12,863 Rasayan Total Revenue Growth (%) (10%) EXPENSES: Cost of Raw Materials Consumed 4,264 5,134 Anupam Gross Profit 7,023 7,707 Gross Margins (%) 62% 60% Gross Profit growth (%) (9%) Employee Benefits Expenses 545 545 Other Expenses 3,408 3,488 EBITDA (Incl. Other Revenue) 3,329 3,697 EBITDA Margins (%) 29% 29% EBITDA Growth (%) (10%) Finance Cost 874 619 Depreciation and Amortization 719 656 Profit Before Tax 1,736 2,422 Tax (Including Deferred Tax) 564 737 Profit for the Year 1,173 1,685 PAT Margins (%) 10% 13% PAT Growth (%) (30%) Note: All numbers above have been rounded-off to zero decimal. Business Overview 2 10 Anupam Rasayan India Limited \  11 Innovating Sustainable & Custom Solutions for Global Markets \ Limited Company at a glance India Established Custom Specializes in multi-step Catering to globally Strong supply chain Synthesis player with 40 synthesis undertaking relevant chemical & with backward Rasayan years of track record complex chemical agrochemical companies, integrated facilities since 1984 reactions including 31 MNC and Anupam cumulative 75 clients ~27,200 MT Manufacturing Strong technical 70 Complex products 1,705+ committed Capacity, spread over 6 capabilities in complex manufactured as of Q4FY24 employees manufacturing facilities chemistries supported consisting of Life science Strong and Dedicated by an R&D team of 88 related specialty chemical Management Team professionals and other specialty chemical Note: All data as of FY24.  12 Evolution of \ Phase II- Limited Phase I-Inception Anupam The Acceleration India Raised ₹5,000 mn. through QIP Formed Rasayan Commissioned Solar partnership firm Power Plant of 5.4MW “Anupam Rasayan” at Bharuch Fast growing Anupam Specialty Chemical Acquired ~26% Manufacturer with Started supplying controlling stake in focus on Custom Anti-Bacterial products Tanfac Industries Ltd. Synthesis. for German MNC Long running relationships with Started working with leading MNCs Adama Started supplying to Syngenta Listed on NSE and BSE Leveraging deep Commissioned Solar expertise across Power Plant of complex chemistries 12.5MW at Bharuch Building platforms across business Commercialized Awarded ‘Green Started Commercialized Received DSIR verticals of Agro, large scale Innovation Award’ supplying to 2 more registration for Personal Care, Pharma manufacturing by Corning Reactor Sumitomo manufacturing R&D Centre and Other Specialty site - Unit 4 Technology Japan sites – Unit 5 & 6 Chemicals.  13 Chemical Conduits and Global Partnerships \ Limited India Business Verticals Overview Few of our top global clients Rasayan Life Science Related Other Specialty Specialty Chemicals Chemicals Agrochemicals Anupam (including Crop Protection) Specialty Pigments Manufacturing agro intermediates and agro active ingredients (insecticides, fungicides and herbicides) Specialty Dyes Personal Care Manufacturing anti-bacterial and ultraviolet protection intermediates Polymer Additives and ingredient Pharmaceuticals Developing intermediates and ‘key Business Verticals-Wise Revenue starting materials’ for APIs, material sciences and surface chemistry Agro 65% Personal 17% Contributes Contributes Care 91%* 9%* Pharma 9% of revenues of revenues Other Speciality 9% Note: Financials, revenue from operations proportion rounded-off to zero decimal also *as of FY24.  14 Charting New Frontiers with R&D Excellence \ Limited Process technologies deployed India Flow Chemistry Photo Chemistry Reduced lead time Simplified Rasayan Material efficient & synthesis of cost benefits complex molecules Lesser Larger potential for environmental automation impacts in the Increased access to Anupam laboratory novel compounds Current R&D highlights DSIR recognized R&D center R&D Capex of ₹55 crores in last 5 years Team of 88 R&D professionals headed by Dr Nilesh Naik New Chemistry Additions Balz Schiemann Vilsmeier–Haack Hofmann rearrangement Sandmeyer Grignard Pyridine Chemistry Lithiation Vapour Phase & high temperature chlorination  15 Experienced Leadership & Deep Technical Talent Pool \ Limited India Mr. Anand S Desai Mrs. Mona A Desai Rasayan Managing Director Vice-chairman & Whole-time Director Over 30 years of experience in chemicals Over 20 years of experience in chemicals industry associated with company since 1992 & industry and associated with the Board since the was one of first Directors of company incorporation of the company Anupam Mr. Gopal Agrawal Mr. Ravi Desai Mr. Amit Khurana Chief Executive Officer Sales Head Chief Financial Officer Qualified CA with 25+ yrs. Exp in 15+ years of experience in sales; Qualified CA with 10+ yrs. exp in Corporate Strategy, global M&A and with ARIL for ~12 years taxes/ accounts; Former Head of Mgmt Consultancy. Former MD & Indirect Taxes & Costing of co., with Head - IB at Edelweiss India ARIL for ~10years Mr. Vishal Thakkar Dr. Nileshkumar Naik Dr. Anuj Thakar Deputy CFO Technical Head Whole time director and R&D 20+ yrs. exp. in M&A, BD, contract PhD (Chem), M.Sc. (Organic Head mgmt. with Shell, Essar, GE Capital, chemistry); with ARIL since PhD (Chem), M.Sc. (Organic Crisil incorporation chemistry); with ARIL for ~18 yrs.  16 Expanded Business Development Team Globally \ Limited Europe United States India Mr. Thierry Baumlin Mr. Pierre Joris Mr. John Grant Rasayan Key Account Manager - Business Advisor - Business Advisor - Crop Protection Specialty Fluoro Chemicals Specialty Fluoro Chemicals 30 years+ of experience in 30 years+ of experience in 30 years+ of experience in Chemicals industry; former strategy Chemicals industry; former SBU Chemicals industry; former business procurement head at BASF head at Solvay development at 3M Anupam Mr. Rob Bryant Business Advisor - Fluoropolymers Japan 30 years+ of experience in Chemicals industry; Currently Mr. Hiroaki Matsudaira Mr. Tsutomu Suetomi working in NASA Director - Business Development Director - Business - Fluoropolymers & Electronics Development - Crop Protection Mr. Terry Clair 20 years+ of experience in 30 years+ of experience in Business Advisor - Fluoropolymers Chemicals industry; former strategy Chemicals industry; former Senior 30 years+ of experience in products head at Mitsubishi sales manager at DuPont Chemicals industry; former employee of NASA Dr. Hironori Ishikawa Business Advisor - Mr. Victor Hsia Electronic Chemicals Business Advisor - 20 years+ of experience in Electronic Chemicals chemical industry; previously 20 years+ of experience in employed with Mitsubishi Semiconductor industry; former Chemical employee of NS Nanotech Drivers Growth 3 17 Anupam Rasayan India Limited \  18 Growth Drivers \ Limited India Rasayan 1 2 3 Anupam Growth of Execution of Expansion in Polymer and Signed LOIs and Fluorination Pharma Product Contracts chemistry Portfolio  19 Growth of Pharma and Polymer Portfolio \ Limited New Strategic Custom 55+ 9+ India Development Products under pipeline to be manufactured by Number of molecules of Number of molecules in Rasayan Anupam in India: pharma and polymer in pharma and polymer R&D and pilot commercialized in FY24 Anupam Pharma Polymer Import Substitute “Key Starting Materials”; Key Intermediates for New Launch Active Ingredients which To manufacture KSM/intermediates for blockbuster are currently being manufactured in Japan and US. molecules Niche high end molecules  20 Pharma Segment Expansion \ Limited …and are targeting a large ~$15B TAM We have made significant progress in Pharma … with significant growth India Rasayan Focus segment for Anupam: High-value KSM/intermediates 10+ Anupam 25+ molecules Leading Pharma commercialized players serviced (over the past 18 months) ~$15B ~5% To t a l CAGR To manufacture KSM/intermediates for Addressable Growth blockbuster molecules, e.g., Market (2023-28) Atorvastatin Vonoprazan Source: Global Consulting firm Sitagliptin Dapagliflozin Losartan and many more… 40+ molecules in R&D and Pilot  21 Made Strides Into Polymer Chemicals \ Limited Forayed into polymer by working with leading global …across major emerging applications innovators … with a ~$10B growing TAM India Rasayan 2 Leading Anupam global innovators ~$10B ~4% High-value Polymer being serviced CAGR Chemicals To t a l A d d r e s s a b l e Growth Market commercialized Source: Global Consulting firm (2023-28) High-value intermediates across applications: Backward integration into Fluorination Defense and Aero Space Display chemicals Significant developments (adv intermed., monomers, cross-linkers (high value etchants, OLED materials) Sole Indian manufacturer of fluorinated molecules with Emerging segments uninterrupted access to key RMs (HF, KF) Semiconductors Heat Transfer Fluids (photoresists, encapsulation, sealants, etc.) (used in data centers) Battery chemicals (salts, solvents) …and others actively 15+ molecules in R&D and Pilot being explored  22 Strong Order Book – Recent LOI/Contracts Signed \ Limited Signing Quarter Segment Customer LOI/Contract Tenor (Years) Value(₹ Crores) India Q1FY22 Life Science Multinational Life Science Company LOI 5 ₹1,100 Q1FY22 Life Science Two Multinational Companies Contract 5 ₹540 Rasayan Q2FY22 Life Science European Multinational Company Contract 5 ₹144 Anupam Q3FY22 Life Science Japanese Multinational Company Contract 4 ₹135 Multinational Crop Protection Q4FY22 Life Science LOI 5 ₹700 Company Q4FY23 Life Science Japanese Chemical Company LOI 6 ₹984 Other Specialty Q1FY24 Japanese Multinational LOI 7 ₹1,500 Chemical Other Specialty Q1FY24 American Multinational LOI 5 ₹380 Chemical Q1FY24 Life Science Japanese Chemical Company LOI 5 ₹2,186 Other Specialty Japanese Multi National Chemical Q3FY24 LOI 9 ₹507 Chemical Company Other Specialty Japanese Multinational Q4FY24 LOI 7 ₹743 Chemical Total ₹8,919  23 Anupam’s Strategic Expansion in Fluorination with Tanfac \ Limited Anupam acquired ~26% stake in India Tanfac for ~₹1,530M in May'22 Rasayan Producer of Leading Anupam fluorinated producer of intermediates KF/HF Specialty fluoride chemical Anupam Tanfac manufacturer in India Only Indian Leading producer of manufacturer of hydrofluoric acid Backward integration with niche molecules in fluorination (HF) and organic and Tanfac to secure KSM chemistry inorganic fluorine- based products Anupam + Tanfac FY24 revenues of Uninterrupted access to key raw materials (HF and KF) for fluorination ~₹3,780 Mn chemistry Enable future expansion of product series under fluorination chemistry Reduce import dependence on China Increased capacities of existing product portfolio of Tanfac through process improvement & debottlenecking  24 Expansion in Fluorination Chemistry \ Limited FOCUSED SEGMENTS MOLECULES END APPLICATION CUSTOMER SEGMENT REVENUE India POTENTIAL Product A Elastomer US MNC Rasayan Polymers $ 40 – 70 Mn. Product B Semiconductor/Flame Retardant Japanese MNC Anupam Product X/Y Cardio/Anti-viral Indian MNC Pharmaceuticals $ 80 – 90 Mn. Product Z Oncology Indian MNC Product M Insecticide Global MNC Agrochem $ 100 Mn. Product N Herbicide European Originator $5+ Bn $220 – Anupam will source All molecules in these series are high fluorinating agents (KF value high margin product and HF) from Tanfac and For most of this products, Anupam $260 Mn Addressable market of manufacture Value will be single supplier out of Asia Targeted Series for Added Products (VAPs) on exclusive basis to originators Anupam* at Anupam Revenue Potential for Anupam* *Global Consulting Firm Research  25 Summary \ Limited Strengths and Key Highlights India Doubled manufacturing capacity in the last three years Rasayan Manufacturing Strong capex plans to expand capacity into newer Prowess molecules / chemistries Anupam R&D DSIR recognized R&D center with a team of 88 R&D professionals Capabilities Strong technical capabilities and robust R&D pipeline (90+ molecules) Strengthening Integration in Customer supply Chain Supply Chain Acquisition of Tanfac for backward integration Sustainable Partner of choice for originators/leading MNC Business model Multi pronged strategy leading to high growth  Corporate Office ANUPAM Anupam Rasayan India Ltd. India (HQ) 10th Floor, Icon Rio, Dumas Road, Surat, Gujarat, RASAYAN INDIA India – 395 007 LIMITED ThankYou BSE: 543275 | NSE: ANURAS | ISIN: INE930P01018 ©2022 – Anupam Rasayan India Limited, All Rights Reserved. DRAFT