Rallis India Limited · NSE:RALLIS

Rallis India — FY2016-17 Earnings Presentation

48 slides from Rallis India's earnings presentation, Apr 25, 2017

Slide 2: Performance Highlights: Q4 and 12 Months (Consolidated)
Performance Highlights: Q4 and 12 Months (Consolidated)  Q4 – Total income at 371 Cr  Q4 – Total comprehensive income at Rs. 32 Cr  12 Months – Total income at Rs. 1796 Cr, rise of 9%  12 Months – Profits Before Tax at Rs 222 Cr, rise by 19%.  YTD - Total comprehensive income at 297 Crs, double
Slide 4: Q4 Financial Performance: Key Highlights vs LY
Q4 Financial Performance : Key Highlights vs LY ` Crs Rallis Standalone Rallis Consolidated Q4 Q4 Q4 Q4 15-16 16-17 15-16 16-17 Revenue from Operations 346 350 380 371 EBITDA 49.6 50.5 45.1 41.6 EBITDA % 14.3% 14.6% 12.2% 11.3% Profit before tax 43.9 43.1 45.6 31.5 Total Comprehensive Income 33.3 33
Slide 5: Financial Performance: Key Highlights vs LY
Financial Performance : Key Highlights vs LY Rallis Consolidated ` Crs Rallis Standalone YTD YTD YTD YTD 15-16 16-17 15-16 16-17 Revenue from operations 1,391 1,516 9% 1642 1796 10% EBITDA 206 235 229 263 EBITDA % 14.8% 15.6% 14.1% 14.8% Profit before tax & Exceptional items 165 201 22% 186 222 19%
Slide 6: Southwest Monsoon 2016: 3% below normal, better than last two years
Southwest Monsoon 2016 : 3% below normal, better than last two years 106 Forecast Actual 106 98 97 96 93 88 86 2013 2014 2015 2016 Rains and reservoirs: Normal monsoon, with some erratic features 6 Copyright © Rallis India Limited. All rights reserved. Source: IMD
Slide 7: Monsoon Better... But not all States & not at the right time
Monsoon Better... But not all States & not at the right time Impact on Crops Tamil Nadu Gujarat Maharashtra Andhra Pradesh Madhya Pradesh Andhra Pradesh Kerala Karnataka Karnataka Karnataka Maharashtra Karnataka UP & Bihar Telangana Critical Events • Tamil Nadu: +35% in June, 3 months dry • Madhya P
Slide 8: Down South - Alternating spells of excessive rainfall and dry days
Down South- Alternating spells of excessive rainfall and extremely dry days Daily Mean Rainfall(mm) Chart Drought in Floods in  Tamil Nadu (-20% Dep.)  Guntur District of AP- Heavy  Rayalaseema Flood  Coastal Karnataka (-21%)  NI Karnataka  South & Central Karnataka (-20%)  Coastal AP  Keral
Slide 9: Business environment and Sentiment
Business environment and Sentiment Delayed monsoon followed by a prolonged dry spells in some areas led to dampened enthusiasm from farmers Except Pulses all other crop acreages are flat 9 Copyright © Rallis India Limited. All rights reserved. Source: IMD, PTI. Rallis Internal Analysis, Electronic m
Slide 10: So, how was S-W monsoon actually?
So, how was S-W monsoon actually?  Monsoon Normal after two years of drought  Kharif sowings were up  Crop health better than last year; Low Pest attack in Cotton, Paddy in many States  Retail food price momentum: prices improved  Kharif production high at 135MT On Balance, Positive 10 Copyrigh
Slide 11: How was NE Monsoon?
How was NE Monsoon? -60% Departure from Normal District Map of Tamil Nadu In spite of various weather systems and three cyclones during the Northeast Monsoon, Tamil Nadu & other Southern States still had to settle for deficit rains this season Copyright © Rallis India Limited. All rights reserved. 1
Slide 12: Sowings
Sowings Areas in Mn HA Area sown in Area sown in Area sown in 2016- YoY Change(%) Kharif Crop 2014-15 2015-16 17 On 2014-15 On 2015-16 Rice 379.67 364.43 375.7 -4.01% 3% Pulses 102.89 106.92 142.02 4% 33% Coarse Cereals 181.87 175.59 184.13 -3% 5% Oilseeds 177.98 178.67 176.6 0% -1% Sugarcane 48.74
Slide 13: Overall Domestic Business
Overall Domestic Business Assumptions Actuals SW 3% below normal, with delayed start and Monsoon-Sufficient Normal – 106% of LPA Temporal and spatial distribution of rain not uniform NE Delayed & 60% scanty Acreages Acreages – Up Acreages up, however down in key south states Farm Sentiments & High G
Slide 14: Paddy Performance – Key States
Paddy Performance – Key States PEST LOAD Low Moderate Severe Important Pest Load Acreages Sheath Stem Leaf States (comp. to Normal) Weed Bt/Blast Borer Fo. BPH Punjab | Up Haryana West Bengal Normal-Up Chhattisgarh Normal Guntur AP | Drop* Telangana Sec- Normal Karnataka Drop* Tamil Nadu | Drop* Ker
Slide 15: Growth in Fruits & Vegetables Segment
Growth in Fruits & Vegetables Segment Actions Taken Trigger Events Identified & Created 33 Dedicated F&V territories based on the potential Improvement in Increase in Crop Economics Reservoir levels Acreages & Spending & Soil Moisture (WB, CG, MH, MP, AP, Capacity of F&V Booklet with complete packag
Slide 17: Global Agchem Business 2016-17
Global Agchem Business 2016-17  The global crop protection market was estimated to decrease by 2.4% to reach a total value of $49.9 b USD in 2016.  The key factors were  Lower prices of agricultural commodities,  High inventory levels at distributor levels in many countries,  Strengthening of U
Slide 18: IBD Business Performance YTD
IBD BUSINESS PERFORMANCE YTD International has performed in line with our expectations: Brazil have recorded better start to the season, with El Niño weather patterns having broken and water availability improved. Pendi and Metri sales continue with good season leading to demand in EU. 18 Copyright
Slide 19: Contract Manufacturing business
Contract Manufacturing business  Dahej – Highest production this year  We have been qualified for couple of new businesses in contract manufacturing.  Gearing up for facilities - Investments underway  Commercial order in coming months… Copyright © Rallis India Limited. All rights reserved.
Slide 21: Reservoir & weather conditions
Reservoir & weather conditions Status of Reservoirs in India 7th April 2017 Heatwave impacted Rabi from March 2017  Same was 129% of last year  However Southern Region with 31 reservoirs including AP,TG,TN,KN,KR mere with 13 % (LY16%)  Northern Region with 6 reservoirs including Maharashtra and G
Slide 22: Rabi Sowing
Rabi Sowing Normal Sown Area Sown Area Sown Over Normal % over LY Area 15-16 16-17 sown area Wheat 30.4 29.7 31.8 6.9% 4.5% Pulses 14.1 14.4 16.0 11.1% 13.5% Oilseeds 8.5 7.9 8.4 6.3% -0.6% Rice 4.4 2.9 2.6 -11.7% -41.3% Coarse 6.5 6.1 5.8 -5.6% -11.7% cereals Total 63.9 61.0 64.5 5.7% 1.0% Sowing i
Slide 23: Q4 Crop Conditions – Impact on Rallis performance
Q4- Crop Conditions – Impact on Rallis performance Crops Key states Performance of Imperative Enablers TN, Kerala, AP, TG, Reservoirs/ Rabi/Summer Pest Pressure - Paddy CG, Irrigation Acreages Low Maharashtra, Pest Pressure Acreages of Pulses Rajasthan, Soil Moisture Total Pulses (Helicoverpa) - Kar
Slide 25: Net Working Capital
Net Working Capital ` Crs Statement of change in working capital Particulars 2015-16 2016-17 Current Assets 560.56 590.39 Inventories 257.50 244.49 Sundry Debtors 182.79 225.84 Other Financial Assets 0.59 0.74 Loans and Advances* 119.68 119.33 Current Liabilities 318.12 336.71 Trade Payable 191.45 2
Slide 26: Cash & Investment plans
Cash & Investment plans  Cash flow from Operating activities is in line with last year, with due focus on cash  Funded acquisition of Zero Waste Limited ~ 20 Crs  Investment plans of ~50 crs largely to support contract manufacturing commercialization  Special dividend considered keeping in mind
Slide 28: Agri Solution – objectives
Agri Solution – objectives Value creation to farmers – to improve productivity & net income Yield improvement 1. Existing crop – by improving quality & yield, or Optimise expenses 2. Additional crop - by enabling the farmer Better rate of produce to add one more crop/harvest, or 3. Crop shift : by h
Slide 29: Agri Solutions Journey
Agri Solutions Agri Solutions Journey  Chosen 45 territories across key geographies and 200 projects for monitoring.  Improved quality of produce, appreciated by Farmers  Farmers from neighboring project, were able to differentiate the Approach (usage of PoP)  Knowledge and skill of team crucial
Slide 32: Customer Connect 16-17 – Total Customer connect 7.5 Mns
Customer Connect 16-17 – Total Customer connect – 7.5 Mns One to One Contact Toll Free Helpline Text & Voice Blast Focused Group Discussion 3.07 Mns 0.163 Mns 2.5 Mns 150+ Crop Seminars Campaigns & Road Shows Agri Solutions PoP Total Customer 1.74 Mns 170+ Customer contact are in millions (mns) Copy
Slide 34: New Products 2016-17
New Products 2016-17 • Insecticide for • Fungicide in Paddy Cotton, Chilli & • seed treatment solution Brinjal against soil borne insect • To be launched in AP, WB and disease complex for and Karnataka • To be launched in groundnut Gujarat, MP & WB • To be launched in Gujarat &RJ Epic Launch at Vija
Slide 37: Innovation Turnover Index
Innovation Turnover Index 2015- 2016- 16 17 11% 7%  Brands like Taffin and GeoGreen get excluded from the list of ITI  Recent launches are well accepted but yet to achieve high volumes  Newly added Hunk and Zeeny, will catch up since this year low BHP attack Copyright © Rallis India Limited. All
Slide 38: Growth Drivers: Agri Solutions, Seeds, Contract Manufacturing
Growth Drivers AGRI Contract SEEDS Manufacturing SOLUTIONS Crop protection + PGN Metahelix Dahej + Geogreen Copyright © Rallis India Limited. All rights reserved.
Slide 39: Metahelix
Metahelix  13% growth in net sales to Rs 287 crs, mainly from Maize and millet  50% rise in Profits  Successful launch of promising hybrids in paddy and millet  A big boost to drive cotton business growth.  Touched 3.5 Mn farmers through PDA & PSA activities  Better working capital management
Slide 41: Safety Awards in 2016-17
Safety Awards in 2016-17 Certificate of Meritorious performance in Industrial Safety Akola Lote National level safety award 2016 Suraksha Puraskar for Ankleshwar Copyright © Rallis India Limited. All rights reserved.
Slide 42: Jal Dhan
Jal Dhan Total 21 villages 65448 People impacted (23109 AA population) Independent Director & Member-CSR Board Committee Mr. YSP Latur & Beed Thorat on Tribal Village visit HO-Mumbai Adopted 7 Working in 8 tribal villages wadi/village Akola & Lote Working in 6 villages 42 Copyright Copyright © Ralli
Slide 44: CSR & Sustainability Award 2016-17
CSR & Sustainability Award-2016-17 Two TATA Volunteering Awards 2016 Sustainability Leadership Award 2016 Copyright © Rallis India Limited. All rights reserved.
Slide 46: Agriculture year 2016-17
Agriculture year 2016-17 Crop economics of farmers All-time high food grain production of 272 million tonnes, 8% up from LY Crop Cotton Soybean Paddy Wheat Yield/Acre ~5 ~5 ~23 ~22 Growth over 2015-16 Crop Production (MT) LY(%) Yield/Acre ~7 ~8 ~25 ~23 Paddy 106.7 2.2% 2016-17 Cotton* 32.5 MB 8.3% K
Slide 47: Monsoon 2017-18
Monsoon 2017-18  IMD Forecasts this year’s monsoon to be 96 % ± 5% of LPA  El-Nino conditions interfering the rainfall pattern in the second half of four month monsoon period(Aug-Sep)  Chances of Farmers bracing up for short duration crops Forecast v/s actuals over the years. Copyright © Rallis I

Rallis India — FY2016-17 Earnings Presentation on 6ix

Rallis India — FY2016-17 Earnings Presentation

Slide 1: Q4 and Year 2016-17 Performance

Slide 2: Performance Highlights: Q4 and 12 Months (Consolidated)

Slide 3: Agriculture & Industry 2016-17: Year context

Slide 4: Q4 Financial Performance: Key Highlights vs LY

Slide 5: Financial Performance: Key Highlights vs LY

Slide 6: Southwest Monsoon 2016: 3% below normal, better than last two years

Slide 7: Monsoon Better... But not all States & not at the right time

Slide 8: Down South - Alternating spells of excessive rainfall and dry days

Slide 9: Business environment and Sentiment

Slide 10: So, how was S-W monsoon actually?

Slide 11: How was NE Monsoon?

Slide 12: Sowings

Slide 13: Overall Domestic Business

Slide 14: Paddy Performance – Key States

Slide 15: Growth in Fruits & Vegetables Segment

Slide 16: Global Agchem Environment Year 2016-17

Slide 17: Global Agchem Business 2016-17

Slide 18: IBD Business Performance YTD

Slide 19: Contract Manufacturing business

Slide 20: Domestic Agchem Environment Q4

Slide 21: Reservoir & weather conditions

Slide 22: Rabi Sowing

Slide 23: Q4 Crop Conditions – Impact on Rallis performance

Slide 24: Quality of operations

Slide 25: Net Working Capital

Slide 26: Cash & Investment plans

Slide 27: Agri Solutions

Slide 28: Agri Solution – objectives

Slide 29: Agri Solutions Journey

Slide 30: Rallis Customer Connect & New Launches

Slide 31: Rallis launches Customer promise

Slide 32: Customer Connect 16-17 – Total Customer connect 7.5 Mns

Slide 33: Farmers meeting & campaign

Slide 34: New Products 2016-17

Slide 35: Rallis APP launch video

Slide 36: Copyright © Rallis India Limited. All rights reserved.

Slide 37: Innovation Turnover Index

Slide 38: Growth Drivers: Agri Solutions, Seeds, Contract Manufacturing

Slide 39: Metahelix

Slide 40: Safety & Sustainability

Slide 41: Safety Awards in 2016-17

Slide 42: Jal Dhan

Slide 43: Jal Dhan in Maharashtra 2016-17

Slide 44: CSR & Sustainability Award 2016-17

Slide 45: Outlook Kharif 2017

Slide 46: Agriculture year 2016-17

Slide 47: Monsoon 2017-18

Slide 48: Copyright © Rallis India Limited. All rights reserved.