Upl Limited · NSE:UPL
Upl — Non-Deal Roadshow (February 2023)
25 slides from Upl's roadshow presentation, February 2023
Slide 1: From reimagining sustainability to real world impact
Investor Presentation 2023 From reimagining sustainability to real world impact February 2023
Slide 2: Opening Statements: Company Overview
1. Opening Statements Company Overview Jai Shroff, Group CEO 2
Slide 3: UPL at a Glance
UPL at a Glance #5 #1 #1 #1 In the Industry In Post Patent Player In BioSolutions AgChem company Solutions globally in ESG by Sustainalytics1 $6.2B 14% $1.4B 17% FY22 Revenue 10Y Revenue CAGR2 FY22 EBITDA 10Y EBITDA CAGR2 13,000+ 43 (15 in India) 30 130+ Employees Globally Manufacturing Facilities R
Slide 4: Fastest Growing Crop Protection Company Among Major Players
Fastest Growing Crop Protection Company Among Major Players Crop Protection: 5-year Revenue CAGR % 1 EBITDA Margin (LFY) 22% 24% 23% 12% 20% N/A 12% 5-yr Revenue CAGR 23% 18% 7% 7% 7% 6% 5% 2 3 Note: 1 As per latest announced Fiscal Year, Peers (December); 2 4-yr CAGR given limited operating history
Slide 5: UPL's core mission is to Reimagine Sustainability in Agriculture with an OpenAg approach
UPL’s core mission is to Reimagine Sustainability in Agriculture with an “OpenAg approach” • Improved Outcomes • ProNutiva – BioSolutions & Traditional CP • Complete Solutions • Global coverage across small & large farmers • Soil Health • Food Security • Water Efficiency • Zero Residue • Plant Stres
Slide 6: Business Segments: Global CP, India CP, Seeds, and Manufacturing & Specialty Chemical
Business Segments: Global CP, India CP, Seeds, and Manufacturing & Specialty Chemical1 Distinct Pureplay Platforms Facilitate Value Unlocking and Position UPL for Accelerated Growth Global Crop Protection Platform (UPL Corporation Ltd.) • Revenue: INR 380 Bn • #6 Crop Protection company (by revenue)
Slide 7: Leadership through diversified global footprint, product mix and operational excellence
Leadership through diversified global footprint, product mix and operational excellence 12% 4% Specialty Crops Diversified footprint and customer proximity LATAM NAM 15% Soybean Geographical 17% 4% 38% Maize • Presence in 130+ countries 39% Outreach 5% Europe ROW Cotton • Strong presence across all
Slide 8: Robust Supply Chain Capabilities Supported by Vertical Integration
Robust Supply Chain Capabilities Supported by Vertical Integration & Well-Diversified Sourcing Mix Snapshot of UPL’s Manufacturing Footprint Active Ingredient (AI) Supply Total Raw Material Sourcing Snapshot - FY22 Sourcing Snapshot - FY22 22% 31% 38% 6% 72% 31% In-House Manufacturing India Outsourc
Slide 9: Robust R&D Capabilities
Robust R&D Capabilities Through Smart Business R&D, UPL is efficiently delivering innovative solutions to support farmer resiliency Snapshot of R&D Capabilities and Investment Recent Investments 1000+ 30 ~3% • Opened new field trial stations in Spain, UK and Mexico R&D Annual Revenue R&D Facilities
Slide 10: Generating and Protecting Value Through IP
Generating and Protecting Value Through IP Granted Patents Pending Applications IP Protected Portfolio Total Countries 1,814 3,881 >30% of Revenue 134 New product development lifecycle Category Distribution – Granted Patents Pain Pain Points Points 13% Herbicide Fungicide 31% 9% Registration Registr
Slide 11: Track Record of Delivering Superior Financial Performance
Track Record of Delivering Superior Financial Performance Delivered Consistent Growth and Improved Profitability with Continued Focus on Deleveraging Total Revenue* (In ₹ Bn) EBITDA* (In ₹ Bn) and EBITDA Margin (%) EBITDA Margin % 21% 20% 20% 21% 22% 22% 462 358 387 316 102 19% 86 175 75 167 63 19%
Slide 12: Growth Strategy: FY23 - FY27
Growth Strategy: FY23 - FY27
Slide 13: Global Crop Protection - Key pillars for driving sustainable growth
Global Crop Protection (including India) - Key pillars for driving sustainable growth Key Pillars Target Outcome Crop Protection Portfolio Mix Evolution1 FY17 FY22 FY27F 1 14% Superior growth of high-margin 29% differentiated and sustainable solutions 86% 71% 50% 50% Post Patent Differentiated & Sus
Slide 14: Crop Protection + NPP BioSolutions Pipeline
Crop Protection + NPP BioSolutions Pipeline Focus on Delivering Superior Differentiated and Sustainable Solutions to Drive Higher Margins 1 Peak Pipeline Composition Peak Pipeline Value (PPV) and other Pipeline Metrics Total Risk Adjusted New molecules3 in % Post Patent >$5.0Bn 25 development pipeli
Slide 15: OpenAg is UPL's way of collaborating to solve challenges
OpenAg is UPL’s way of collaborating to solve challenges and create new opportunities 1 1 Access to Technologies Creating a Community 2 Focused on Sustainable Agriculture Collaborating with farmers to reduce 1 Gigaton of CO2 from the atmosphere by 2040 15
Slide 16: Go-to-market strategy for accelerated penetration in select markets, crops and segments
Go-to-market strategy for accelerated penetration in select markets, crops and segments 2 Multi-pronged Approach to our GTM Strategy Geographical Customer Strategic alliances/ Cross-selling expansion proximity partnerships ▪ Farmer outreach: Franchise/ ▪ “Grower pain point” for better ▪ Post-patent
Slide 17: Key Initiatives over FY23-27 to Maintain Supply Chain Competitive Edge
Key Initiatives over FY23-27 to Maintain Supply Chain Competitive Edge 3 3-pronged strategy to ‘Enhance Efficiency’ and ‘Drive ROCE Accretive Sustainable Growth’ 1 2 3 Optimise Sourcing Digitization & Continued reduction of environment Mix Analytics footprint in manufacturing • Expand own manufactur
Slide 18: Advanta Enterprises (Global Seeds Platform) – Growth Ambition & Strategy
Advanta Enterprises (Global Seeds Platform) – Growth Ambition & Strategy (FY23-FY27) Target to Achieve Revenue Growth of ~12-15 % p.a. and EBITDA Growth of ~15-18% p.a. over next 5 years 1 2 3 Increase Penetration Product Innovation Strategic M&A Across Geographies & Crops KEY ✓ ESG focused solution
Slide 19: Specialty Chemicals: Fastest Growing Division of the Group
Specialty Chemicals: Fastest Growing Division of the Group Specialty Chemicals Business has scaled-up rapidly over the last 4 years ‘Specialty Chemicals’ - Business Overview Total Revenue (In ₹ Bn) Current Chemistries End Markets 15 ▪ Phosphorus Derivatives ▪ Pharmaceuticals 10 ▪ Agrochemical 9 ▪ Su
Slide 20: Appendix
Appendix
Slide 21: 9M FY23 Business Highlights
9M FY23 Business Highlights Delivered Solid All-round Performance INR 370 Bn INR 159 Bn INR 81 Bn INR 28 Bn Revenue Contribution EBITDA Net Profit +22% +24% +24% +24% Price +17%, FX +5% Margin: 42.9% Margin: 22.0% ▪ Robust growth led by 1) improved realizations across regions with agri-commodity pri
Slide 22: 9M FY23 Regional Highlights
9M FY23 Regional Highlights Continue to Deliver Robust Operational Performance (INR Bn) Latin America North America Europe Rest of World India +26% +33% +6% 20% +15% 155 57 63 50 123 52 43 45 43 43 9MFY23 9MFY22 • Improved herbicides • Industry annual growth in • Low single-digit growth vs. • Double
Slide 23: Increase in Net Working Capital Primarily Driven by Robust Growth
Increase in Net Working Capital Primarily Driven by Robust Growth 9MFY23 9MFY22 (No. of days) 138 134 122 127 121 117 113 108 Inventory Days Recievable Days Payable Days Net Working Capital Days Dec’23 : INR 200 Bn Dec’23 : INR 170 Bn Dec’23 : INR 194 Bn Dec’23 : INR 175 Bn Dec’22 : INR 143 Bn Dec’2
Slide 24: 9M FY23 Cash Flow and Debt Position as on 31st Dec 2022
9M FY23 Cash Flow and Debt Position as on 31st Dec 2022 Gross & Net Debt Position – Dec 2022 Cash generated by Business in 9M FY23 All figures are in INR Bn and US$ Mn All figures are in INR Bn Particulars Dec’22 Sep’22 Change Mar’22 15 328 326 +2.5 259 Gross Debt 8 $3,965 $3,995 ($30) $3,416 2 75 C
Slide 25: Revamped Corporate Structure
Revamped Corporate Structure Creating Distinct Pureplay Growth Platforms to Unleash Growth Potential of Each Independent Platform UPL Limited KKR ADIA, Current Market Cap: ~INR 550 Bn6 (~US$ 6.7 Bn) Brookfield and TPG Manufacturing & Specialty Chemicals Platform US$ 300 Mn5 (INR 25 Bn) 13.33% INR 16