Atul Limited · NSE:ATUL

Atul — Shareholder Meeting (2023)

52 slides from Atul's shareholder meeting presentation, 2023

1. Slide 1: Annual General Meeting 2023

   welcome Annual General Meeting 2023 | 21

2. Slide 2: Current environment

   Current environment INS VOLATILITY AMh ? ag 1 S VUCA~ A NG a AMBIGUITY COMPLEXITY ' rs « We L BRITTLE, ANXIOUS, NON-LINEAR, INCOMPREHENSIBLE 1] 21

3. Slide 3: Main areas

   Main areas People Operations Systems Progress Operations Growth 2 | 21

4. Slide 4: Profit before tax

   Profit before tax from operations ` cr 828 803 804 730 312 80 7 03-04 09-10 14-15 19-20 20-21 21-22 22-23 3 | 21

5. Slide 5: Endurance

   Endurance  Think deeply  Interpret changes clearly  Work creatively  Act cohesively  Relearn quickly  Serve earnestly Become internally stronger 4 | 21

6. Slide 6: Financials 2022-23 (standalone)

   Financials 2022-23 standalone Sales ` cr EBITDA ` cr EBITDA % 5,002 953 19% 18% 4,929 895 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 PBT ` cr RoCE % 24% 804 19% 730 2021-22 2022-23 2021-22 2022-23 5 | 21

7. Slide 7: Financials 2022-23 (consolidated)

   Financials 2022-23 consolidated Sales ` cr EBITDA ` cr 5,364 996 5,014 894 2021-22 2022-23 2021-22 2022-23 Sales: increase by volume – (1)% increase by price – 2% EBITDA % PBT ` cr 20% 810 688 17% 2021-22 2022-23 2021-22 2022-23 6 | 21

8. Slide 8: Dividend

   Dividend 325% 75% 275% 125% 250% 250% 200% 150% 150% 120% 100% 100% 85% 75% 60% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Special dividends: • 125% in FY20 on the 125th anniversary of our Founder • 75% in FY23 on completion of 75 years of incorporation of the Company 7 | 21

9. Slide 9: Stagnant Sales and PBT

   Stagnant Sales and PBT  Lower demand  Decrease in selling prices  Increase in prices of coal  Fire in one of the plant No excuses for decline in performance 8 | 21

10. Slide 10: Rebuilding

    Rebuilding Fire in April, 2022 | 21

11. Slide 11: Projects

    Projects Current potential at To be completed in Sales potential 90% capacity utilisation 2023-24 and 2024-25 ` 6,350 cr ` 1,150 cr ` 7,500 cr No structural change observed in demand of the products 9 | 21

12. Slide 12: Crop Protection – Retail

    Crop Protection – Retail Sales ` cr 197 176 2021-22 2022-23 Committed to long-term growth 10 | 21

13. Slide 13: Polymers – Retail

    Polymers – Retail Sales ` cr 245 211 2021-22 2022-23 Committed to long-term growth 11 | 21

14. Slide 14: Mandate

    Mandate enlarge retail base expand geography Build product portfolio fortify processes strengthen team Practice the philosophy of continuous improvement. Get a little bit better every single day. BRIAN TRACY 12 | 21

15. Slide 15: Financials of subsidiary, JV and associate entities

    Financials of subsidiary, JV and associate entities production* Sales ` cr PBT ` cr 578 47 518 10 2021-22 2022-23 2021-22 2022-23 *Amal, Anaven, Atul Bioscience, Atul Rajasthan Date Palms, Amal Speciality Chemicals, DPD, Rudolf Atul Chemicals, Osia Infrastructure 13 | 21

16. Slide 16: Financials of subsidiary, JV and associate entities

    Financials of subsidiary, JV and associate entities Sub-optimal performance  Lower sales from Atul Bioscience, Ambernath  Delayed stabilisation of Atul Rajasthan Date Palms  Pressure on selling prices of ANAVEN  Stabilisation of Amal Speciality Chemicals 14 | 21

17. Slide 17: Atul Products Ltd

    Atul Products Ltd 300 tpd Caustic + 50 MW powerplant Investment: ` 822 cr, Sales: ~ ` 500 cr, Date of completion: September 30, 2023 | 21

18. Slide 18: JV and associate entities

    JV and associate entities Amal (50%) Amal Speciality Chemicals (50%) Anaven (50%) Atul Bioscience (100%) Atul Rajasthan Date Palms (74%) DPD (98%) Osia Infrastructure (100%) Rudolf Atul Chemicals (50%) | 21

19. Slide 19: Q1 Financials

    Q1 Financials standalone Sales ` cr EBITDA ` cr EBITDA % 1,409 288 19% 18% 1,018 176 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 PBT* ` cr PBT ` cr RoCE % 248 213 23% 131 14% 131 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 * PBT without adjusting for loss because of fire Down, but significan

20. Slide 20: Digitalisation

    Digitalisation Pervading technology across functions  Supply chain planning  Sales forecasting  Customer relationship  Enterprise Resource Planning – Oracle  HR processes 16 | 21

21. Slide 21: Digitalisation: R&D and Manufacturing

    Digitalisation R&D and Manufacturing  Design of experiment studies  Data acquisition and real time analysis  Digital storage and transfer of data  RFID  Intelligent plant 17 | 21

22. Slide 22: Human Resources

    Human Resources ET | MT recruitment Elevation from within 106 108 30% 86 72 19% 10% 2020-21 2021-22 2022-23 2023-24 2020-21 2021-22 2022-23 18 | 21

23. Slide 23: Organisation structure

    Organisation structure dimensions Particulars UoM 1994-95 2022-23 Gross block ` cr 231 2,872 Sales ` cr 235 5,002 Businesses No 4 9 Foreign entities No 1 7 Operating entities No 5 22 Non-operating entities No 2 24 19 | 21

24. Slide 24: Atul Foundation

    Atul Foundation Atul Foundation is committed to fostering sustainable socio-economic upliftment, particularly in the lives of the underprivileged through relevant programs | projects namely: Education Empowerment 16,280 b, 240 v 10,980 b, 508 v Conservation Health 52,190 b, 67 v 27,560 b, 76 v Infra

25. Slide 25: Education

    Education Nurtured 16,280 children through quality education in 240 villages | 21

26. Slide 26: Empowerment

    Empowerment Empowered 10,980 tribal youth and women through vocational training, self-help groups and other activities in 508 villages | 21

27. Slide 27: Health

    Health Helped 27,560 children, youth, men and women through various health programs in 76 villages | 21

28. Slide 28: Relief

    Relief Extended support to 10,596 people from 15 villages | 21

29. Slide 29: Infrastructure

    Infrastructure Improved quality of life for 6,636 people through various infrastructure projects in 21 villages | 21

30. Slide 30: Conservation

    Conservation Planted 52,190 trees and conducted conservation initiatives in 67 villages | 21

31. Slide 31: Institutions under Atul Foundation

    Institutions under Atul Foundation Kalyani Shala Urmi Stree Sanstha Ulhas Utkarsh Atul Rural Development Fund Atul Vidyalaya Atul Club Atul Vidyamandir Atul Institute of Industrial Training Atul Foundation Vocational Excellence Institutes Health Center | 21

32. Slide 32: Recognition

    Recognition Awarded for water conservation initiatives by The Southern Gujarat Chamber of Commerce and Industry and Gujarat Pollution Control Board | 21

33. Slide 33: Independent directors

    Independent directors Mr Rajendra Shah Mr Bansi Mehta since May 1983 since April 1992 | 21

34. Slide 34: Non-executive independent Directors

    Non-executive independent Directors Rajendra Shah Bansi Mehta Susim Datta Srinivasa Rangan Mukund Chitale Shubhalakshmi Panse Baldev Arora Pradeep Banerjee Rangaswamy Iyer | 21

35. Slide 35: Team Atul

    Team Atul | 21

36. Slide 36: remain connected

    remain connected contact@atul.co.in | 21

37. Slide 37: Dreams | Determination | Dedication

    Dreams | Determination | Dedication | 21

38. Slide 38: Shareholders queries

    Shareholders queries | 21

39. Slide 39: Queries

    Queries Number of queries No Shareholder name Shares held Operations Growth People Equity Others Total 1 Mr Manish Gupta 1,28,194 7 2 2 3 3 17 2 Mr Ravi Mehta 35,400 9 3 - - 12 3 Mr Sunil Kothari 11,500 - 2 - 1 3 4 Mr Rupen Masalia 6,536 11 8 - - 19 5 Mr Laxman Gupta 386 - 2 - 3 5 6 Ms Ashadevi Gupt

40. Slide 40: Thank you

    Thank you | 21

41. Slide 41: Global chemicals market 2021

    Global chemicals market 2021 Euro bn Country Production Imports Exports Consumption Net import Germany 171 94 128 138 -34 India 104 63 33 133 30 France 103 51 65 89 -14 USA 437 125 150 412 -25 China 1,729 188 161 1,757 28 Japan 190 39 70 159 -31 South Korea 133 43 69 107 -26 World 4,026 1,520 1,426

42. Slide 42: Inflation, China vs India

    Inflation, China vs India Inflation 14 12 10 8 6 4 2 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 -2 China India Indian inflation higher every year since 2000 Source: World Bank CPI data 2 | 12

43. Slide 43: Global production and prices

    Global production and prices CAGR between 2008 and 2021 Euro bn Production Producer price Capital R&D Country index index expenditure spend Germany (0.1)% 1.3% 7.3 4.4 India 2.7% 3.1% 5.0 1.6 France 0.9% 0.7% 4.0 2.4 USA (1.2)% 1.9% 25.2 7.9 China 9.1% 0.0% 109.0 14.7 Japan (0.3)% (0.1)% 6.1 7.6 Sou

44. Slide 44: Role of China in Global Chemicals

    Role of China in Global Chemicals Difficult to compete with China on commodity and must focus should be on specialty chemicals 4 | 12

45. Slide 45: IIP – Manufacturing vs Chemicals (India)

    IIP – Manufacturing vs Chemicals (India) IIP - Manufacturing vs Chemicals 160 140 120 100 80 60 40 20 0 Jun-22 Feb-20 Apr-20 Jun-20 Feb-21 Apr-21 Jun-21 Feb-22 Apr-22 Feb-23 Apr-23 Aug-19 Aug-20 Aug-21 Oct-19 Aug-22 Dec-19 Oct-20 Oct-21 Oct-22 Dec-20 Dec-21 Apr-19 Dec-22 Jun-19 Manufacturing Chemica

46. Slide 46: Indian Chemicals – Production vs Consumption

    Indian Chemicals – Production vs Consumption Euro bn Year Production Exports Imports Consumption 2018 101.7 28.0 47.5 121.2 2019 105.2 30.3 48.7 123.6 2020 92.5 26.7 42.2 108.0 2021 103.5 32.8 62.6 133.3 CAGR 0.59% 5.42% 9.64% 3.22% CAGR of consumption significantly higher than CAGR of production So

47. Slide 47: Chemicals – IIP vs imports

    Chemicals – IIP vs imports Units bn Import volume Year IIP for Chemicals Chapter 29 2017-18 116 14 2018-19 119 15 2019-20 119 15 2020-21 116 15 2021-22 121 16 2023-23 129 18 CAGR 2% 5% CAGR of import volume is much higher than CAGR of IIP for Chemicals * Annualised based on actuals upto Jan 2023 Sou

48. Slide 48: Trade deficit Chapter 29

    Trade deficit Chapter 29 USD bn Country Import (USD bn) Exports (USD bn) Trade deficit (USD bn) 19-20 20-21 21-22 22-23 23-24 19-20 20-21 21-22 22-23 23-24 19-20 20-21 21-22 22-23 23-24 China 8 9 13 13 13 3 2 2 2 1 5 7 10 12 12 Others 12 11 16 16 14 15 16 20 20 18 -3 -5 -4 -4 -4 Total 20 20 29 29 26

49. Slide 49: Chemicals volume growth (%)

    Chemicals volume growth (%) Year Global India China EU 2010 9.3 2011 4.8 2012 2.9 2013 4.6 2014 3.5 2015 3.6 2016 3.4 2017 3.7 2018 2.7 2019 1.8 2020 (0.4) (5.4) 3.4 (2.1) 2021 6.1 7.0 7.7 6.0 2023 2.2 4.6 6.6 (5.8) Cumulative growth over 8.30% 5.90% 18.70% (2.25)% last 3 years EU has long-term stru

50. Slide 50: Import and export prices

    Import and export prices USD | MT Imports of products falling under the purview of Chemexcil, for the year 2019-20, 2020-21 and 2021-22 2019-20 2020-21 2021-22 Chapter number|panel Volume Volume Volume Rate Rate Rate MT MT MT IMPORTS (32) Dyes 41,513 8,053 35,652 7,593 44,027 8,724 (38) Agrochemical

51. Slide 51: Global chemicals capacity utilisation

    Global chemicals capacity utilisation 11 | 12

52. Slide 52: IPEX – Regional and Global

    IPEX – Regional and Global 11|26 12 | 12

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