Upl Limited · NSE:UPL
Upl — Investor Day (May 2024)
53 slides from Upl's investor day presentation, May 13, 2024
Slide 1: Capital Markets Day
Capital Markets Day 13 May 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of UPL Limited (UPL) and certain of the plans and objectives of UPL with respect to these items. Examples of forward-looking statements include
Slide 3: UPL Group FY24 Performance
UPL Group FY24 Performance Jai Shroff, Chairman and Group CEO
Slide 4: UPL Group FY24: Highly Unusual Year, in-line with Global Crop Protection Industry
UPL Group Highly Unusual Year, in-line with the Global FY24 Crop Protection Industry Revenue EBITDA Net Debt (US$ Bn) Working Capital FY24 Actuals INR₹ 431Bn INR₹ 55Bn US$ 2.66Bn 86 Days FY24 Change YOY (20%) (51%) +US$ 0.6Bn +22 Days Prolonged Destocking Up ~$200 Mn adjusted Driven by transitory an
Slide 5: Future Focus: Value Creation with Focus on Profitability & Deleveraging
Future Value Creation with Focus on Profitability & Focus Deleveraging Faster Growth across Improve Capital platforms - flexibility to Efficiency and pursue independent growth Profitability strategies Emphasis on Value Creation Improve Cashflows and Unlocking Value of Focus on Deleveraging Platforms
Slide 6: Unlock Power of Platforms: Accelerate Profitable Growth
Future Unlock Power of Platforms: Accelerate Profitable Focus Growth with Emphasis on Cash Generation Crop Protection Global Seeds Specialty Chemicals UPL Sustainable Agri Advanta UPL Corporation Ltd. UPL Specialty Chemicals Ltd. Solutions Ltd. Enterprises Ltd. • Continue to expand portfolio of diff
Slide 7: UPL Leading the Agenda for Sustainable Agriculture on World Stage
Reimagining UPL Leading the Agenda for Sustainable Sustainability Agriculture on World Stage UPL, the only private company invited to present examples to more than 35+ Ministers of Agriculture on the subject of food security, water conservation, and climate-smart technologies at COP28 Presidential R
Slide 8: OpenAg in Action: Real World Impact on Sustainability
OpenAg in Action Real World Impact on Sustainability How UPL’s solutions touch more than just crops – an example from India Create a segment of “Green Sugar” Create an ecosystem of connected produced from sustainably-grown sugar cane stakeholders using end- Vision sugar cane Mission to-end sustainab
Slide 9: Transition to Green Chemistries
Transition to Green Real World Impact on Sustainability UPL commences transition to Green Chemistries in its Specialty Chemicals Platform FY24 FY25 & Beyond • Commissioned 62 MW Wind • Transition to Green Chemistries and Hydrogen Solar Hybrid power plant production • Share of green power at 30% • Co
Slide 10: UPL Group FY24 Financial Performance
UPL Group FY24 Financial Performance Anand Vora, CFO
Slide 11: UPL Group Q4FY24 Demand Recovery; Margins Hit by Transitory Impact
UPL Group Demand Recovery vs. Q3; Margins hit by Transitory Impact Q4FY24 of Higher Rebates & High-Cost Inventory Liquidation All Figures In ₹ crore Particulars Q4FY24 Q4FY23 Change % Revenue Variance – Q4FY24 vs. Q4FY23 Revenue 14,078 16,569 -15% Higher rebates impact of ₹948 crore Contribution Pro
Slide 12: UPL Group FY24 Financial Results
UPL Group Destocking, Lower Prices led Revenue Impact; FY24 Transitory Impacts and One-time FX Loss hit Profitability All Figures In ₹ crore Particulars FY24 FY23 Change % Revenue Variance – FY24 vs. FY23 Revenue 43,098 53,576 -20% Higher rebates impact of ₹2,354 crore 14,989 21,593 included in pric
Slide 13: FY24 Working Capital Analysis
FY24 Working WC Days Higher Mainly due to Capital Analysis Lower Factoring FY24: 12,777 Cr FY24: 14,601 Cr FY24: 17,241 Cr FY24: 10,137 Cr FY23: 13,985 Cr FY23: 14,970 Cr FY23: 19,565 Cr FY23: 9,390 Cr 146 133 124 108 102 95 86 64 Inventory Receivables Payables Net Working Capital FY24 FY23 WC Days
Slide 14: Decline in Profitability and High Working Capital led to Increase in Net Debt
UPL Group Decline in Profitability and High Working Capital FY24 led to Increase in Net Debt Net Debt Position - FY24 Increase in Net Debt by ~$602 Mn YoY mainly All figures are in INR Crore and US$ Mn due to: • Cash flow impact of decline in profitability Particulars FY24 FY23 Change • Reduced Fact
Slide 15: UPL Corporation Ltd.
UPL Corporation Ltd. Mike Frank, Chief Executive Officer
Slide 16: Q4 and FY24 Performance Overview
QO4 and FY24 Performance Overview
Slide 17: UPL Corp Q4 Margin Recovery vs. Q3
UPL Margin Recovery vs. Q3, Corp Q4 Despite Continued Challenges Particulars (in INR B) Q4 FY24 Q4 FY23 B/(W) LY • Pricing challenge, excess • Ex-Brazil LATAM flat vs. returns, unfavorable LY, driven by volumes Revenue 101.9 137.2 -26% weather in key regions • Differentiated Contribution margin Reve
Slide 18: UPL Corp Q4 by Regions
UPL Corp Q4 LATAM, NA, and EU Decline Due to Destocking, by Regions Pricing Pressure, and Unfavorable Weather Regional Revenue Bridge (in INR B) 16.3 3.4 14.7 1.0 137.2 101.9 Q4FY23 LATAM NA Europe ROW Q4FY24 • Price decline, adverse weather, excess returns in Brazil LATAM • Demand shifting closer t
Slide 19: UPL Corp FY24 Destocking Challenges, Pricing Pressure
UPL Corp Destocking Challenges, Pricing Pressure in Key FY24 Markets Led Decline Particulars (in INR B) FY24 FY23 B/(W) LY Revenue 308.8 419.8 -26% Contribution margin 26.1% 34.7% -860bps • Herbicides pricing • Ex-Brazil LATAM growth SG&A 59.7 63.8 6% challenge in NA, Brazil led by volumes • Higher
Slide 20: UPL Corp FY24 by Regions
UPL Corp FY24 Overall Pricing Challenge, by Regions Destocking in Key Regions Regional Revenue Bridge (in INR B) 48.6 47.2 11.6 3.6 419.8 371 324 312 309 308.8 FY23 LATAM NA Europe ROW FY24 • Post-patent herbicide impacted, mainly from destocking • Significant price decline, higher rebates and exces
Slide 21: Differentiated / Sustainable Segment Delivers Higher Volume
UPL Corp Differentiated / Sustainable Segment Continues to FY24 Deliver Higher Volume Along with Consistent Margin Revenue Bridge (in INR B) Volume growth in recent launches (Evolution®, Feroce®) in Brazil; FY24 NPLs ~$56 M 11.4 16.7 Price decline offset by input cost tailwinds and improved mix 113.
Slide 22: Differentiated Launches Outperformed, Driving Innovation and Value
UPL Corp Differentiated Launches Outperformed, Driving FY24 Innovation and Value Accelerated volume growth continues to demonstrate wider product acceptance Brand Feroce® Evolution® Shenzi® Portfolio Insecticide Fungicide | MMX platform Insecticide Superior offering against Better multi-site tech, s
Slide 23: Key Strategic Actions for Future Readiness
UPL Corp Key Strategic Actions for Future Readiness FY24 Foundation for medium to long term growth, through more efficient operating model Driver Impact Actions Simplified operating model • Regional realignment • Agile organization structure Strategic reset, lower cost base for future • Transitionin
Slide 24: FY25 Outlook
FY25 Outlook
Slide 25: UPL Corp FY25 Priorities
UPL Corp FY25 Priorities Focus on profitable growth and cash generation Accelerate Improved Cash Innovation, Leverage Margins Generation go-to-market • Margin over volumes through • Sales closer to use; • Higher focus on differentiated • Product mix Improvement in working / sustainable segment capit
Slide 26: Leading Through Innovation In Sustainable Offerings
UPL Corp Leading Through Innovation In Sustainable Offerings Focus on delivering new AIs and Our Increasing Market Footprint FY24 NPP volume growth despite challenges Ambition to grow faster vs. market Sustainable Solutions demonstrate acceptance of our offerings (~14% CAGR in FY24-FY27) Key focus a
Slide 27: Crop Protection + Sustainable Solutions Pipeline
UPL Corp Protection++Sustainable Crop Protection SustainableSolutions SolutionsPipeline Pipeline Focus on to drive delivering higher solutions margin to growth drive higher margin growth Peak Pipeline Composition Peak Pipeline Value (PPV) and other Pipeline Metrics 20% ~$5 B $1.5 B Risk Adjusted Pea
Slide 28: R&D Efforts: Recent Successful Launches
UPL Corp R&D Efforts: Recent Successful Launches Offering Type Launch type Key Regions FY24 status Weed management Preview® 2-way herbicide – pre-emergent New launch NA Triskele® 3-way herbicide New launch LATAM / ROW Winger® Cereal herbicide Geographic expansion ROW Disease management Evolution® 3-
Slide 29: Robust R&D Pipeline (1/2)
UPL Corp Robust R&D Pipeline (1/2) On track to building a comprehensive product portfolio for future Offering Type Key Regions Current Status Remarks Weed management Kashmir® 3-way herbicide LATAM Phase 4 Launch ready “AS 1” Pre-plant burndown LATAM Phase 3 Reg. expected in FY26 “AM 1” 2-way herbici
Slide 30: Robust R&D Pipeline (2/2)
UPL Corp Robust R&D Pipeline (2/2) On track to building a comprehensive product portfolio for future Offering Type Key Regions Current Status Seed Applied Technologies Flupyrimin 500 FS ST insecticide LATAM Phase 2 “CY ST” ST fungicide LATAM / NA Phase 2 NPP Nitrogen Fixing Improve N Fixation, posit
Slide 31: FY25 Action Plan to Rebuild Key Impacted Markets
UPL Corp FY25 Action Plan to Rebuild Key Impacted Markets Regain market share with profitable growth and improved cash generation Market reality today Immediate Priorities - Generic AIs significantly impacted, mainly in US, Brazil row crops - Profitable growth, improved cash generation, through stro
Slide 32: Summary: Focus on Profitable Growth
UPL Corp Summary: Focus on Profitable Growth Driving Innovation And Value ✓ On path to business recovery in FY25 ✓ Priority to improve business quality resulting in improved margins and cash generation ✓ Continue to focus on differentiated / sustainable solutions, through new mixtures and increased
Slide 33: UPL SAS FY24 Performance
UPL SAS FY24 Performance Ashish Dobhal, Chief Executive Officer
Slide 34: UPL SAS Q4 FY24 Focus on Cash Generation and Overheads
UPL SAS Focus on Cash Generation and Overheads Q4 FY24 Optimization In INR Crore Particulars Q4FY24 Q4FY23 YoY% 60% Decline in Revenue vs LY • Revenue Variance: Volumes -57%, Price: -3% Revenue 429 1,062 -60% • In-line with new strategy of realigning of sales closer to the season to Contribution Pro
Slide 35: UPL SAS FY24 Reduced Cotton Acreage Impacted Sales
UPL SAS Reduced Cotton Acreage, Low Glufosinate Demand and FY24 Delayed Placement Impacted Sales In INR Crore 34% Decline in Revenue vs LY Particulars FY24 FY23 YoY% • Revenue Variance: Volumes -27%, Price: -7% Revenue 2,845 4,326 -34% • Lower Cotton acreages in North India (~10% YoY) and Rice in An
Slide 36: UPL SAS New launches to Diversify Crop Profile
UPL SAS New launches to Diversify Crop Profile New Key Launches planned in FY25 6 New launches with focus on Differentiated and Sustainable Portfolio to help strengthen presence in Rice, Vegetables and Maize. # New Portfolio & Composition Pain Point & Crop Application Peak Revenue Launches (no. of p
Slide 37: UPL SAS Realigning Business Priorities for the Future
UPL SAS Realigning Business Priorities for the Future Regain volume Higher Volume Growth Expand Continued in flagship Contribution from New Differentiated & SG&A products from Recent Launches Sustainable Share Rationalization Profitable Launches (Flonicamid+ (Increase to ~35% Growth Mixtures, in FY2
Slide 38: Advanta Enterprises FY24 Performance
Advanta Enterprises FY24 Performance Benjamin Marolda, Global Chief Operating Officer
Slide 39: Advanta Q4 FY24 Robust Growth in Sales and Profitability
Advanta Continued to Deliver Robust Growth in Sales and Q4 FY24 Profitability In INR Crore Particulars Q4FY24 Q4FY23 YoY% +34% Revenue Growth vs LY • Price: +6%, Volume: +27%, FX: +0.5% Revenue 1,119 835 34% • Higher volumes and Improved realizations in Canola, Corn, and Sorghum Contribution Profit
Slide 40: Advanta FY24 Healthy All-round Operational Performance
Advanta FY24 Healthy All-round Operational Performance In INR Crore Particulars FY24 FY23 YoY% +17% Revenue Growth vs LY • Price: +6%, Volume: +9%, FX: +2% Revenue 4,148 3,558 17% • Strong traction in Field corn, Sunflower, Canola, and Sorghum portfolios led by Contribution Profit 2,369 1,996 19% hi
Slide 41: Advanta Traction Across Key Crops led by Targeted Initiatives
Advanta Traction Across Key Crops led by Targeted Initiatives Key Technology Key Crops Brands FY24 Revenue Crop Growth Drivers & Differentiating Factors Share* (%) • Continued to grow market share on established portfolio Field Corn 45% • • Launch of new superior products (high-yield / increased tol
Slide 42: UPL Group FY24 HSE Performance
UPL Group FY24 HSE Performance Raj Tiwari, Chief Executive Officer, UPL Specialty Chemicals
Slide 43: FY24 HSE Occupational Health and Safety
FY24 HSE Occupational Health and Safety Committed to “Zero Harm” Process Safety Incidents (no.) Safety Culture Global Warehouse Transformation OHS Capability Building Assessment & Crisis 5 Underway Management ✓ Risk mitigation of Phase 1 ✓ OHS standards benchmarking ✓ Baseline assessment of all 2 cr
Slide 44: UPL included in the DJSI World Index
FY24 HSE UPL included in the DJSI World Index Commissioned 62MW DJSI rates UPL as the Included in CDP On track to achieve 5Y Included in DJSI World Wind Solar Hybrid #1 global agro- Supplier Engagement committed targets in Index project in partnership chemical company1 Leaderboard FY25 with Cleanmax
Slide 45: UPL Specialty Chemicals FY24 Performance
UPL Specialty Chemicals FY24 Performance Raj Tiwari, Chief Executive Officer
Slide 46: UPL SCL Q4 & FY24 Revenue; Margins Higher vs LY in FY24
UPL SCL Low Agchem Demand & Pricing Pressure Impacted Q4 & FY24 Revenue; Margins Higher vs LY in FY24 In INR Crore FY24 Performance Update • Captive Business Particulars Q4FY24 Q4FY23 YoY% FY24 FY23 YoY% o Lower demand in-line with the group’s AgChem business and lower realizations due to drop in ma
Slide 47: UPL SCL Key Strengths and Future Growth Strategy
UPL SCL Key Strengths and Future Growth Strategy Growth Strategy: Leverage the large asset base, vertical integration and complex chemistry expertise of the ‘captive’ business to rapidly scale-up the ‘non-captive’ business ❖ Vertically-integrated set-up provides ❖ 50+ years expertise of ❖ ‘Benefits
Slide 48: UPL Group FY25 Outlook
UPL Group FY25 Outlook Anand Vora, CFO
Slide 49: UPL Group FY25 Outlook
UPL Group FY25 Outlook 4 - 8% >50% $300 - $400 Mn Operational Free Cash Generation to be Revenue Growth EBITDA Growth used for debt reduction 49
Slide 50: Annexure
@UPL Annexure
Slide 51: Q4 & FY24 Net Finance Cost Breakdown
Annexure Q4 & FY24 Net Finance Cost Breakdown In INR Crore Particulars Q4FY24 Q4FY23 Change % FY24 FY23 Change % Interest on Borrowings 568 370 54% 2,088 1,277 64% Interest on Leases & Others 239 393 -39% 842 1,105 -24% Other Financial Charges 40 49 -18% 161 166 -3% NPV – Interest & Finance 79 155 -
Slide 52: Balance Sheet: FY24
Annexure Balance Sheet: FY24 In INR Crore Particulars YTD Mar’24 YTD Mar’23 Particulars YTD Mar’24 YTD Mar’23 Equity Share Capital 150 150 Fixed Assets Tangible Assets 9,549 9,361 Perpetual bonds 2,986 2,986 Intangible Assets 11,023 11,366 Retained earnings 24,657 26,813 Right of use assets1 1,265 9
Slide 53: Low Risk Debt Profile
Annexure Low Risk Debt Profile Breakdown of $3.4 Bn Gross Debt Debt by Security (%) Debt by Fixed/Floating Rate (%) As of March 31, 2024 As of March 31, 2024 0.7% 21% Unsecured Floating Average cost of debt Secured Fixed is ~7% 79% 99.3% Long-term Debt by Maturity (%) Debt by Currency (%) As of Marc