Slide 1: Investor Presentation
Investor Presentation 1
Slide 2: 2
2
Slide 3: UPL at a Glance
UPL AT A GLANCE 3
Slide 4: UPL – From local to a global player
UPL – From local to a global player 1969 1980 2000 2018 Growth through product End to end global agri input The beginning diversification presence • Phosphorus based industrial • Diversified into • Patented, proprietary, post-patent Product chemicals agrochemicals and specialty • Seeds to pre and po
Slide 5: Key milestones
Key milestones Well balanced organic & inorganic growth • RiceCo helped leverage global sales and • Crossed US$2.7 Bn in revenue marketing network in taking product offerings to global rice markets – Crop Focus 2018 • Crossed 5,884 mark in • Manzate Fungicide Business along with registrations manufa
Slide 6: Global Agro Solutions Company
Global Agro Solutions Company 2nd 130+ 35 7,435 Countries with Manufacturing Employee Largest sales presence facilities base globally post-patent agrochemicals company globally 25+ Successful 241 6,181 acquisition Granted Registrations integrations in the patents past 20 years US$2.71bn1 14% 20% 1.0
Slide 7: Sector / Industry Update
SECTOR / INDUSTRY UPDATE 7
Slide 8: Industry has strong fundamental growth drivers
Industry has strong fundamental growth drivers Crop protection - Sizeable market with stable growth Strong fundamental growth drivers Herbicides Insecticides Fungicides Others • Growing population leading to higher need for agri output $mm 56,715 CAGR (16–21E) 1,840 • Reduction in arable land due to
Slide 9: Leading market position in crop protection industry
Dow-Dupont ¹ 14,342 Syngenta ¹ 12,649 Bayer ¹ 8,015 BASF ¹ 4,767 Innovators FMC¹ 4,150 4 Monsanto Revenue (US$mm) Adama ¹ 3,259 UPL² 2,714 Nufarm ¹ 2,347 Sumitomo 3 1,913 Platform ¹ 1,879 Albaugh 3 1,053 Redsun 3 527 Post-patent Sipcam 3 488 ¹ CY17 Turnover, ² FY18 Turnover, 3 CY16 data from Philip
Slide 10: Post patent products have been gaining market share
Post patent products have been gaining market share Market share of Post patent products has been increasing steadily Patent Proprietary off-patent Post patent • Post patent products accounted for 66% of the world markets in 2016 compared to 30% in 2000 30.0% 37.2% • Post patent players have been co
Slide 11: Favorable industry dynamics towards post-patent space
Favorable industry dynamics towards post-patent space Industry characteristics Key success factors • Highly consolidated market • Strategic shift to bigger molecules Consolidated market • ~68% of market share1 with Syngenta, Bayer, BASF, • Integration of crop protection, seeds and traits Dow, Monsan
Slide 12: Significant consolidation is driving few companies to emerge as leaders
Significant consolidation is driving few companies to emerge as leaders Number of M&As in the sector Market share by revenue for top players 15 Pre-combination of Post-combination of Dow-DuPont, Dow-DuPont, Bayer-Monsanto & Bayer-Monsanto & Syngenta-Adama Syngenta-Adama 10 Others Others Syngenta Syn
Slide 13: UPL's Value Proposition
UPL’S VALUE PROPOSITION 13
Slide 14: UPL is best placed in the industry
UPL is best placed in the industry Well supported by its key pillars and a strong foundation R&D and product Registration Global manufacturing Prudent acquisition innovation capabilities and supply chain Market access strategy capabilities • Focused R&D • Local registration • Global • Marketing push
Slide 15: Well diversified geographical footprint
Well diversified geographical footprint Global footprint with presence across 130+ countries • Sales presence across 130+ countries that account for 90% of the world’s food basket • Physical presence in 40+ countries through subsidiaries and associates • Manufacturing presence across 33 sites includ
Slide 16: Well diversified geographical footprint and strong product portfolio
Well diversified geographical footprint and strong product portfolio Full suite of crop solutions including seeds and crop protection products Steadily evolving into an all encompassing product portfolio Herbicides Insecticides Fungicides Others Seeds (Advanta) 18% 20% 9% 10% 9% 27% 12% 9% 11% 48% 5
Slide 17: Well diversified and strong product portfolio - Seeds
Well diversified and strong product portfolio - Seeds Presence across major seed segments Advanta seeds – Global portfolio • Countries of presence: USA, Mexico, Australia, Argentina, Asia, Africa, Europe, Thailand Sorghum • World leader in Grain Sorghum • Major breeding programs in USA, Argentina &
Slide 18: Well diversified and strong product portfolio - Rice
Well diversified and strong product portfolio - Rice RiceCo – Rice centric solutions Key characteristics / trends of the market RiceCo’s Sales • Market size: US$ 5.9 billion • Top countries: US, Columbia, Thailand, Indonesia, China, India and Nigeria USD mn • Increase in input intensification UPL’s
Slide 19: Well diversified and strong product portfolio - Decco
Well diversified and strong product portfolio - Decco Decco – Post harvest solutions Key characteristics / trends of the market Overview and presence • Top countries include US, Italy, Spain, Israel, India, Mexico, Costa Rica, • Provides smart protection post-harvest and storage solutions South Afri
Slide 20: Well diversified and strong product portfolio - ALP
Well diversified and strong product portfolio - ALP Global leader in ALP Fumigant market shows promising growth potential Fumigants – Regional share FY15 US$mm ROW North America 25.0% 23.0% 304 276 244 Brazil 205 218 197 4.0% 176 148 154 Europe India 20.0% 13.0% Latin America 15.0% FY11 FY12 FY13 FY
Slide 21: Well diversified and strong product portfolio – Adjacent Technologies
Well diversified and strong product portfolio – Adjacent Technologies Foraying into innovative adjacent technologies UPDT (Zeba®) Zeba® on vegetables • ZEBA absorbs and releases water as needed by plants ZEBA on Potatoes – Reduces plant stress caused by heat and limited water availability • 9% more
Slide 22: Well diversified and strong product portfolio - Biologicals
Well diversified and strong product portfolio - Biologicals Vector control and biological technologies Vector Control technologies Biological technologies • Technology to limit or eradicate the mosquito or insects carrying disease • Offers complete solution to farmers by creating a portfolio of path
Slide 23: Presence across value chain
Presence across value chain End-to-end process competence Process value chain -> Global Active Formulation Research & Marketing and product Registration ingredient and Development distribution development manufacturing packaging 23
Slide 24: Strong R&D capabilities and product innovation driving competitive advantage
Strong R&D capabilities and product innovation driving competitive advantage Strong in-house R&D capabilities • Innovating process technology of post-patent molecules • Innovating product through differentiated eco-friendly formulation, combinations & mixtures • Strong field R&D capabilities • Suppo
Slide 25: Local registrations expertise in key geographies
Local registrations expertise in key geographies Product registration process serves as a key barrier to entry Indicative Market Key highlights of product registration process duration • Federal approval followed by individual state approvals USA 3 – 3.5 years • Decisions at federal level take 1.5 y
Slide 26: World-class manufacturing facilities & efficient supply chain driving cost leadership
World-class manufacturing facilities & efficient supply chain driving cost leadership Manufacturing capabilities creating leadership position in Crop Protection market UPL operates manufacturing facilities globally - India, Europe and Latin America Large manufacturing facilities for Mancozeb, Al
Slide 27: World-class manufacturing facilities & efficient supply chain driving cost leadership
World-class manufacturing facilities & efficient supply chain driving cost leadership Ankleshwar, India Haldia, India Rotterdam, Netherlands Vapi, India Bassens, France Barranquilla ,Colombia Jammu, India Sandbach, UK Ituverava, Brazil 27
Slide 28: Best practices in safety procedures - EHS
World-class manufacturing facilities & efficient supply chain driving cost leadership Best practices in safety procedures - EHS Continued focus on safety Key safety initiative Focus on capturing leading indicators Safety talk in the beginning of each shift Increased participation of employees
Slide 29: Extensive sales, distribution and marketing setup with ability to create strong brands
Extensive sales, distribution and marketing setup with ability to create strong brands Exclusive global sales force and network of distributors creating a demand pull Europe Asia Sales – 46 Sales – 50 North America Marketing - 18 Marketing - 12 Sales – 31 Marketing - 5 AME India Sales – 20 Sales – 4
Slide 30: Farmer engagement
Extensive sales, distribution and marketing setup with ability to create strong brands Farmer engagement Farmer Engagement Adarsh Farm Services Initiatives Trust++ Program Farmer Advisory Adarsh Kisan Center Initiatives 30
Slide 31: Best-in-class profitability
Best-in-class profitability High share of Branded sales Branded sales contribution in various target markets Branded Generic 6% 5% 10% 15% 22% 25% 94% 95% 90% 85% 78% 75% North America Europe Latin America India RoW Overall 31
Slide 32: Financials
FINANCIALS 32
Slide 33: Financial Highlights – FY 2018
Financial Highlights – FY 2018 9% 47 bps 17% (CER) Delivering consistent and In spite adverse business Amidst intense cost and profitable growth year on year conditions competitive pressures 23.4% * 84 days Rs. 2,843 cr Efficient utilization of scarce Tighter rein on working capital Qualitative grow
Slide 34: Working Capital Analysis
Working Capital Analysis FY 2017 FY 2018 137 122 124 125 94 97 91 84 Days + - = Net Inventory Receivables Payables Working Capital INR in Crore FY 2017 FY 2018 Turnover 16,054 17,117 34
Slide 35: Superior Performance with Conservative Approach
Superior Performance with Conservative Approach 35
Slide 36: Financial Results: Q1 FY 2019
Financial Results: Q1 FY 2019 36
Slide 37: Thank You
THANK YOU W Zi