Rallis India Limited · NSE:RALLIS

Rallis India — Q4 FY2018 Earnings Presentation

45 slides from Rallis India's earnings presentation, Apr 30, 2018

Slide 1: Welcome!
Welcome! V Shankar 30th April 2018 1
Slide 2: Performance Highlights: Q4 and 12 Months (Consolidated)
Performance Highlights: Q4 and 12 Months (Consolidated)  Q4 – Total income ` 371 Crs  Q4 – Total comprehensive income ` 21 Crs  FY18 – Total income ` 1808 Crs  FY18 - Total comprehensive income at ` 167 Crs.  Board recommends a Dividend of ` 2.50 per share Copyright © Rallis India Limited. All
Slide 3: Q4 Financial Performance: Key Highlights vs LY
Q4 Financial Performance : Key Highlights vs LY ` Crs Rallis Standalone Rallis Consolidated Q4 Q4 Q4 Q4 2016-17 2017-18 2016-17 2017-18 Revenue from Operations 347 349 367 371 Net sales (adj for Excise) * 328 349 6.3% 348 371 6.6% over over PY PY EBITDA 50.61 42.70 41.7 33.63 EBITDA % 14.6% 12.2% 11
Slide 4: YTD Financial Performance: Key Highlights vs LY
YTD Financial Performance : Key Highlights vs LY Rallis Consolidated ` Crs Rallis Standalone YTD YTD YTD YTD 2016-17 2017-18 2016-17 2017-18 Revenue from operations 1490 1516 1768 1808 Net sales(adj for Excise) * 1386 1498 8% 1664 1791 7.6% over over EBITDA 235.27 226.19 PY 263.61 264.47 PY EBITDA %
Slide 6: Monsoon Behaviour
Monsoon Behaviour  SPI-Jan-Mar  SPI - Jun-Mar  472 districts -Mild to extreme dryness  368 districts -Mild to extreme dryness (Irrigation was a constraint in Paddy crop) (Paddy,F&V affected due to less rainfall)  153 districts with severe to extreme dry  140 districts with severe to extreme dr
Slide 7: Rabi Sowing Status
Rabi Sowing Status 70 20% 65 64 62 60 17% 15% 50 10% 40 30 32 30 5% 5% 30 0% 20 16 17 -1% -1% 14 -4% 8 8 -5% 8 -5% 10 6 6 6 4 3 3 0 -10% Wheat Paddy Total Pulses Coarse Cereals Oil Seeds Total Normal area sown Area sown in 2016-17 Area sown in 2017-18 Change over LY Sowing is down by 1% as compared
Slide 8: Q4 Crop Conditions – Impact on Rallis performance
Q4- Crop Conditions – Impact on Rallis performance Crops Key states Performance of Imperative Enablers Reservoirs/ Pest Pressure - Paddy TN, KN, AP, TG, CG,BH,WB Irrigation Acreages Medium Pest pressure- Pulses MH,KAN,, UP, AP, TG,MP Soil Moisture Acreages Low, missed Bollworm sprays 7% Fruits & Var
Slide 10: South West Monsoon 2017 ends with 5% less than normal
South West Monsoon 2017 ends with 5% less than normal Seasonal Rainfall 1st June to 30th September Normal Actual Regions % Departure Rainfall(mm) Rainfall(mm) North West India 615 552.9 -10% Central India 975.5 918.8 -6% South Peninsula 716.1 717.6 0% East and North East India 1438.3 1386.4 -4% Coun
Slide 11: July August September
July August September Normal(mm) Actual(mm) % Departure Normal(mm) Actual(mm) % Departure Normal(mm) Actual(mm) % Departure 289.2 294 2 261.3 228.1 -13 173.4 152.1 -12 Source: IMD 11 Copyright © Rallis India Limited. All rights reserved.
Slide 12: Rainfall remains normal but ill-distributed
Rainfall remains normal but ill-distributed State-wise Week-wise Overall Overall - 5% deficient rainfall, ~65% area receives normal rainfall 12 Copyright © Rallis India Limited. All rights reserved.
Slide 13: So, how was S-W monsoon actually?
So, how was S-W monsoon actually?  Monsoon ends with 5% less than normal  Kharif sowings were down by 2% over LY  Crop health better than last year; Low Pest attack in Cotton, Paddy in many States  Kharif production is 135MT which is less than 3% over LY 13 Copyright © Rallis India Limited. All
Slide 14: How was NE Monsoon?
How was NE Monsoon? Seasonal Rainfall 1st October to 31th December Spatial Rainfall Analysis 1.10.2017 to 31.12.2017 Normal Actual % Regions Rainfall Rainfall Departure (mm) (mm) North West 62.7 27.5 -56% India Central India 79.6 72.3 9% South 273.3 243.6 -11% Peninsula East and North East 171.4 200
Slide 15: Sowings
Sowings Area in Mn Ha Normal Area sown Area sown Change Kharif area sown in 2016-17 in 2017-18 Over LY(%) Paddy 382 383 379 -1% Cotton 103 103 123 19% Pulses 147 148 142 -4% Coarse Cereals 190 191 187 -2% Oil seeds 190 189 173 -9% Groundmut 47 47 42 -11% Soyabean 115 115 106 -8% Sugarcane 46 46 50 9
Slide 16: Overall Domestic Business
Overall Domestic Business Expectation Actuals Normal – 96% ± 4% of SW below normal, with timely start and Temporal Monsoon-Sufficient and spatial distribution of rain not uniform LPA NE timely and -11% departure from Normal Acreages Acreages – Up Acreages down by 2% over LY Kharif and 1% over Rabi F
Slide 17: YTD CP Performance over Last Year Improved
YTD CP Performance over Last Year Improved Key states Pest Load Crops LY CY Stem Stem TN, KN, AP, TG, CG,BH,WB Borer,BPH,SB, Borer,BPH,SB, Paddy Blast,Grain Blast,Grain Shine shine Aphids,Jassids, Aphids,Jassids, GJ,MH,AP,TG,KN,TN Cotton Water Stress White fly,PB White fly,PB 7% Sucking Pulses MH,KA
Slide 19: Global Ag chem Business 2017-18
Global Ag chem Business 2017-18  The global crop protection market was estimated to increase by 0.2% to reach a total value of $53.69 b USD in 2017. The key factors were  Weak crop commodity prices.  High distributor inventory in many markets.  Strengthening of US dollar against most major curre
Slide 20: Current happenings in China
Current happenings in China Key happenings Current update  Chinese Central Government MEP (Ministry of Environmental Protection) started new round of environmental inspection mainly in Shandong & New Round of MEP Jiangsu provinces. Inspection  Due to this, many plants are expected to shut / run fo
Slide 21: International Business Performance YTD
INTERNATIONAL BUSINESS PERFORMANCE YTD International has performed in line with our expectations:  Brazil situation is improving, showing a positive impact however Chinese competition continue to impact margins in Acephate  Herbicides sales continue with good season leading to demand in EU  Fungi
Slide 22: Net Working Capital 2017-18
Net Working Capital-2017-18 Statement of change in working capital ` Crs Particulars 2016-17 2017-18 Current Assets 590.06 912.83 Inventories 244.49 374.86 Sundry Debtors 225.84 365.33 Other current Assets 119.73 172.65 Current Liabilities 338.93 481.86 Trade Payable 227.93 368.65 Provisions 26.52 1
Slide 23: Reasons impacting Margins
Reasons impacting Margins Gross Margins EBITDA Margins  Product mix variance  Employee benefit expenses increased due to additional man  Farmer opted for low value power recruitments as per plan generics due seasonal aberrations  Some one-time expenses  Competitive pressures due to  Provision
Slide 24: Reasons for increase in Working Capital
Reasons for increase in Working Capital Inventory Debtors  Strategic Inventory held considering  Long dry spells along with intermittent anticipated shortages in Key RM required rains during active crop growth and for H1FY 19 sales plan harvesting period affected the market cash cycles  Output Pr
Slide 26: High Yields, Better Quality, Lower Costs
2017-18 Kharif –  High Yields Value Creation  Increase farmer 0.5 M  Better quality SoW  Lower costs  Higher revenues 1M Farmers Rabi – Kharif achievement – 45 k farmers 0.5 M % Improvement in Yield % increase in income < 5% >40% 6094 3081 13% 11-20% 7% 16128 11-40% 35% 11643 5-10% 25% 11475 25
Slide 27: Digital Updates
Digital Updates  Drishti rolled Pan India for 4  Samadhan has a multilingual Crops – 4 pests x 4 diseases – support with app being available in 11 languages  SAMPARK extensively being used Paddy, Cotton, Tomato & Chilly  Farmers registered on Samadhan for CA Training.  Crop Health, Weather, Soi
Slide 29: Customer Connect FY18 – Total Customer connect 9.48 Mns
Customer Connect FY18– Total Customer connect – 9.48 Mns One to One Contact Toll Free Helpline Text & Voice Blast Focused Group Discussion Crop Seminars Campaigns & Road Shows Samadhan App Total Customer 9.48 Mns Customer contact are in millions (mns) Copyright © Rallis India Limited. All rights res
Slide 30: New Products 2017-18
New Products 2017-18 • Insecticide for Paddy,Cotton, • Specialized • Fungicide in Paddy fungicide for Fruits Chilli & Brinjal and Vegetables • Controls Sheath blight with Yield • Combination of Acephate segment and Quality enhancement +Buprofezin Launch in Guntur,Raipur,Chandigarh Launch in Guntur,
Slide 31: Innovation Turnover Index
Innovation Turnover Index 2016-17 2017-18 7% 10%  Recent launches are well accepted but yet to achieve high volumes  Growth driven by Summit, Pulito, Cenator and Epic Copyright © Rallis India Limited. All rights reserved.
Slide 33: Metahelix
Metahelix  1.5x PBT for second consecutive year (PBT Rs 32.6 Cr vs Rs 20.9 Cr PY)  Sustained growth in Revenues & PBT; Better than AOP performance in Capital Employed & Free Cashflow in spite of difficult environment  Revenue: Rs 318 Cr vs Rs 278 Cr LY;  Capital Employed Rs.84 Cr; FCF Rs 40 Cr 
Slide 35: Stewardship 2017-18 – Safety Awareness campaign
Stewardship 2017-18 – Safety Awareness campaign Activity Number Number of farmer meetings: 597 Safety meetings – All India No.of farmers participated : 38,289 Safety meetings with TATA Trusts in Number of farmer meetings: 472 Maharashtra state No. of farmers participated : 26,000 Awareness campaign
Slide 37: PPE program with Government Officials to spread awareness
PPE program with Government Officials to spread awareness Sangli Nashik Ratnagiri Jalgaon Copyright © Rallis India Limited. All rights reserved.
Slide 39: Sustainability Model
stainability Model (&) RALLIS A TATA Enterprise RALLIS INDIA LIMITED S ¢ Responsible Care’ A TATA Enterprise Corporate Sustainability Social (CSR + AA) Environment Natural Resource . Industrial Waste rw) Energy & Greening Zero liq. Discharge Wealth from Waste O2 Reduction Renewable Source
Slide 40: Jal Dhan Project-Impact
Jal Dhan Project-Impact Harvested nearly 1.06 Million cubic Meter Approx. 5.0 crores of Bucket of water Harvested Four times more water than what we utilise in our operations 111688 beneficiaries covered
Slide 41: Education Initiative
Education Initiative No of schools 36 No. of students 29 8755 9800 20 16 5085 4972 3984 5 2559 2468 69080 980 2013-14 2014-15 2015-16 2016-17 2017-18 2013-14 2014-15 2015-16 2016-17 2017-18
Slide 43: Agriculture year 2017-18
Agriculture year 2017-18 All-time high food grain production of GVA in agriculture and allied activities at 2011-12 277.49 million tonnes, 1% up from LY prices(%YoY) 5.6 Production in Production in Growth Crops 4.9 Despite a bumper 2016-17(MT) 2017-18(MT) over LY(%) output, agriculture is Rice 109.7

Rallis India — Q4 FY2018 Earnings Presentation on 6ix

Rallis India — Q4 FY2018 Earnings Presentation

Slide 1: Welcome!

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

Slide 3: Q4 Financial Performance: Key Highlights vs LY

Slide 4: YTD Financial Performance: Key Highlights vs LY

Slide 5: Domestic Agchem Environment Q4

Slide 6: Monsoon Behaviour

Slide 7: Rabi Sowing Status

Slide 8: Q4 Crop Conditions – Impact on Rallis performance

Slide 9: Agriculture & Industry 2017-18: Year context

Slide 10: South West Monsoon 2017 ends with 5% less than normal

Slide 11: July August September

Slide 12: Rainfall remains normal but ill-distributed

Slide 13: So, how was S-W monsoon actually?

Slide 14: How was NE Monsoon?

Slide 15: Sowings

Slide 16: Overall Domestic Business

Slide 17: YTD CP Performance over Last Year Improved

Slide 18: Global Agchem Environment Year 2017-18

Slide 19: Global Ag chem Business 2017-18

Slide 20: Current happenings in China

Slide 21: International Business Performance YTD

Slide 22: Net Working Capital 2017-18

Slide 23: Reasons impacting Margins

Slide 24: Reasons for increase in Working Capital

Slide 25: Copyright © Rallis India Limited. All rights reserved.

Slide 26: High Yields, Better Quality, Lower Costs

Slide 27: Digital Updates

Slide 28: Rallis Customer Connect & New Launches

Slide 29: Customer Connect FY18 – Total Customer connect 9.48 Mns

Slide 30: New Products 2017-18

Slide 31: Innovation Turnover Index

Slide 32: Growth Drivers

Slide 33: Metahelix

Slide 34: Safety & Sustainability

Slide 35: Stewardship 2017-18 – Safety Awareness campaign

Slide 36: PPE Awareness program – Farmers and farm labours

Slide 37: PPE program with Government Officials to spread awareness

Slide 38: Lote unit receiving National Safety Award

Slide 39: Sustainability Model

Slide 40: Jal Dhan Project-Impact

Slide 41: Education Initiative

Slide 42: Outlook for Kharif 2018

Slide 43: Agriculture year 2017-18

Slide 44: Monsoon

Slide 45: Copyright © Rallis India Limited. All rights reserved.