Upl Limited · NSE:UPL
Upl — Investor Day (May 2021)
50 slides from Upl's investor day presentation, May 12, 2021
Slide 1: Capital Markets Day Presentation
Capital Markets Day Presentation 12th MAY 2021
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: Corporate Overview
Corporate Overview Jai Shroff, Global CEO 3
Slide 4: Our values
Our values Nothing’s impossible. Always human. One team, one focus. Win win win. Agile. Keep it simple, make it fun. 4
Slide 5: Living our value of Always Human
Living our value of Always Human Stepping up at the time of a global crisis 5
Slide 6: The global challenge of feeding the world
The global challenge of UPL delivering effective solutions feeding the world Driving sustainable agriculture 50% 17% Achieving transformational growth through technology integration More demand Harvest losses Lead the Agri Solutions space for food through differentiated products, bio-solutions, Acce
Slide 7: OpenAg
OpenAgTM Reimagining Sustainability with an open network to create sustainable growth for all - no limits, no borders.
Slide 8: Our Mission
Our Mission Change the game to make every single food product more sustainable
Slide 9: Snapshot of UPL
Snapshot of UPL #5 #1 #1 In the Industry In BioSolutions Ag.chem company in ESG by Sustainalytics1 ₹ 387B 21% ₹ 86B 26% FY21 Revenue 5Y Revenue Growth FY21 EBITDA 5Y EBITDA Growth 1 Based on Sustainalytics report dated 25th Sept 2020 9 2 Revenue and EBITDA growth from FY16 to FY21
Slide 10: OpenAg in Action: Business Performance
OpenAg in Action Business Performance Diego Casanello, Global COO
Slide 11: FY2021 Financial Highlights
FY2021 Financial Highlights A Strong Year under Challenging Conditions 8% (₹ crore) FY 2021 FY 2020 B/(W) LY Revenue Growth vs LY Strong volume growth in most Revenue 38,694 35,756 8% regions (11% growth vs FY20), partially off-set by impact of currency Gross Margin 41% 40% +46bps (-3% growth vs FY2
Slide 12: FY2021 Regional Highlights
FY2021 Regional Highlights Latin America North America Europe Rest Of World India 8% 1% 12% 3% 22% 14,863 13,764 7,044 6,815 5,691 5,635 6,422 5,714 4,677 3,828 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 Growth despite Supply constraints New product sales continue Strong growth in Asia, Excel
Slide 13: OpenAg smart solutions transforming growth
OpenAg smart solutions transforming growth Journey has begun to become an OpenAg smart Farming Partner Growth in Revenues (₹ crore) CAGR: 21% 38694 35756 31616 16680 17506 14660 Reliable Product Supplier OpenAg Smart Farming Partner Product focused supply of post- Smart Farming Solutions, combining
Slide 14: Strategy Update
Strategy Update OpenAg – Reimagining Sustainability Carlos Pellicer, Global COO
Slide 15: OpenAg helps farmers grow and prosper
OpenAg helps farmers grow and prosper. New ideas, new ways, new answers. 15
Slide 16: OpenAg is customer centric and agile
OpenAg is customer centric and agile OpenSkies Strategies drive UPL’s OpenAg Innovation pull model, developing platforms of solutions to address key farmer pain points Traditional Discovery-Driven Push Model • Higher innovation cost & risk • Lower speed-to-market of new products Product for Farmers
Slide 17: OpenAg brings solutions to farmers from soil to sale
OpenAg brings solutions to farmers from soil to sale Addressing farmers’ pain points in fast growing segments, to make every single food product more sustainable Digital Services 3-4x market CAGR Weed, Disease Seeds & Insect Plant Stress Protection & Stimulation 1-2x market CAGR 3-4x market CAGR 1 x
Slide 18: Soybean Resistance Management Platform for Brazil
Soybean Resistance Management Platform for Brazil Conceptualized in FY11, and growing consistently since launch Farmer The inability to control fungi due to loss of efficiency of established solutions and higher disease pressure, Pain Point impacting productivity and return on investment Major Solut
Slide 19: Soybean Resistance Management Platform for Brazil
Soybean Resistance Management Platform for Brazil Conceptualized in FY11, and growing consistently since launch Farmer The inability to control fungi due to loss of efficiency of established solutions and higher disease pressure, Pain Point impacting productivity and return on investment Launch Year
Slide 20: Other Examples of OpenAg Innovation Pull Model
Other Examples of OpenAg Innovation Pull Model Through the creation of Platforms of Differentiated and Sustainable Solutions PLATFORM CONTROL OF SUCKING PLATFORM ANTI-SPROUTING PESTS FOR POTATOES Solutions • Sperto®, Perito®, and more… Solutions • Argos®, Fazor®, and more… Highlighted solution Spert
Slide 21: How to become an OpenAg smart farming partner?
How to become an OpenAg smart farming partner? OpenAg OpenSkies Reimagining ① Strategies Sustainability OpenAg with an open network to ② Innovation create sustainable growth OpenAg for all - no limits, no ③ Collaboration borders. ④ OpenAg Services Digital and 21
Slide 22: OpenSkies Strategies are built from farmer pain points
OpenSkies Strategies are built from farmer paint points OpenSkies Country Strategies Program initiated in FY21 for Strategies are created through a the development of long-term customer centric approach, with growth strategies for UPL’s the identification of major farmer top 20 countries, representi
Slide 23: Strategy Update
Strategy Update OpenAg – Reimagining Sustainability Adrian Percy, CTO
Slide 24: OpenAg Innovation driven by Farmer Pain Points
OpenAg Innovation driven by Farmer Leading to solutions and Pain Points collaborations “Best-in-class” at re-inventing chemistry and creating crop solutions 103 78 New Technology Collaborations with Deploy a “field to lab” approach that combines Evaluations External Partners deep market insights to
Slide 25: UPL's Capabilities for Delivering OpenAg Innovation
UPL’s Capabilities for Delivering OpenAg Innovation Through agility, creativity and collaboration, we are committed to solving pain points that drive sustainable agriculture and farmer resiliency. Field Stations, Chemistry and Formulation R&D Labs 750+ 20+ >2.5% R&D Professionals R&D Facilities Annu
Slide 26: Connecting Innovation to Farming at Scale
Connecting Innovation to Farming at Scale Bringing OpenAg Innovation and OpenAg Collaboration together • The OpenAg Farm is an area of 25,000 ha divided into 7 farms in the state of Mato Grosso • UPL has partnered with farmers and farming companies to realize this innovative vision • By farming at s
Slide 27: OpenAg Innovation pipeline is transforming UPL
OpenAg Innovation pipeline is transforming UPL >$2.5 Bn Innovation Rate¹ >$4.5 Bn 21.8% Total Risk Adjusted Peak Est. Projected Risk Adjusted 20.8% 20.8% Sales3 Outlook Revenue in 5 years ~50% 15 FY 19-20 FY 20-21 FY 21-22² Increase in PPV from last year New Molecules in Development Pipeline FY2021
Slide 28: Building Sustainable Solutions for the Soil and Seed Health Segment
Building Sustainable Solutions for the Soil and Seed Health Segment Flupyrimin, Novel Insecticide GAXY, Proprietary Biostimulant with new mode of action with optimizing plant potential expanded application TAM: ~$1.6 Bn TAM: ~$ 0.1-0.2 Bn • Inability to protect seeds and seedlings from insects • Ina
Slide 29: Strategy Update
Strategy Update OpenAg – Reimagining Sustainability Carlos Pellicer, Global COO
Slide 30: OpenAg Collaboration - Our way of life
OpenAg Collaboration - Our way of life We connect and collaborate in new ways to resolve challenges and create new opportunities together OpenAg Center Collaboration portal Agronomical Collaboration Collaboration with FIFA Foundation Collaborations for Access to technologies Digital Collaborations S
Slide 31: OpenAg Collaboration - Our way of life
OpenAg Collaboration - Our way of life Enhanced Tool Kit of Solutions Description Partner Date March 2021 • Addition of core active ingredient to develop new family of value-added solutions to growers, with 17 formulations in AI/Service Chlorantraniliprole the pipeline TAM $5.0 Bn • Early access to
Slide 32: OpenAg Collaboration - Our way of life
OpenAg Collaboration - Our way of life Enhanced Tool Kit of Solutions Description Partner • Flupyrimin, discovered by Meiji, is a patented insecticide with a new MOA subgroup Date 2018, 2020 and May 2021 • Latest license agreement provides UPL exclusive access to Flupyrimin AI/Service Flupyrimin, IP
Slide 33: OpenAg Collaborations drive growth
OpenAg Collaborations drive growth Enhanced Tool Kit of Solutions Partner Date January 2021 May 2021 Service: Scalable sensor on an artificial Soil Health Collaboration AI/Service intelligence platform Technology to monitor the Two-year collaboration to help Description temperature, humidity and car
Slide 34: OpenAg Digital Universe
OpenAg Digital Universe We help farmers be more resilient by making agriculture simpler, more predictable and sustainable 34
Slide 35: OpenAg Digital Universe accelerating Smart Farming Solutions
OpenAg Digital Universe accelerating Smart Farming Solutions Agronomic advice Omni-Channel Platform in real time to that allows farmers to farmers order inputs and sell outputs online Farm Commercialization Management Farm Management FinTech Business Intel New alternative Services to farmers Financi
Slide 36: OpenAg Growth Ambition
OpenAg Growth Ambition OpenAg smart Farming Partner Journey • Long Term Revenue Growth Ambition of 7 – 10% p.a. 7% to 10% CAGR • OpenSkies Strategies will focus our efforts to create Services Platforms of Solutions that will address farmers’ pain points and to become an OpenAg Farming Partner • Deli
Slide 37: Robust Financials in a Challenging Environment
Robust Financials in a Challenging Environment Anand Vora, Global CFO
Slide 38: Track record of Superior Financial Performance
Track record of Superior Financial Performance Total Revenue* (₹ in crore) EBITDA* (₹ in crore) CAGR: 21% CAGR: 26% 35,756 38,694 8,559 31,616 7,452 6,312 16,680 17,506 8% 15% 14,660 3,429 3,517 2,711 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 PAT**@ (₹ in crore) Net Debt (₹ in cror
Slide 39: Q4 Profit and Loss Account
Q4 Profit and Loss Account ₹ crore Particulars Q4 FY21 Q4 FY20 Change Reported % Reported % % Total Revenue from operation 12,797 100% 11,141 100% 15% Variable Cost 8,061 63% 7,188 65% Gross Margin 4,736 37% 3,953 35% 20% Fixed Overheads 1,896 15% 1,784 16% EBITDA 2,839 22% 2,169 19% 31% Other Incom
Slide 40: FY2021 Profit and Loss Account
FY2021 Profit and Loss Account ₹ crore Particulars FY2021 FY2020 Change Reported % Reported % % Total Revenue from operation 38,694 100% 35,756 100% 8% Variable Cost 22,990 59% 21,756 61% Gross Margin 15,704 41% 14,000 39% 12% Fixed Overheads 7,145 18% 6,897 19% EBITDA 8,559 22% 7,103 20% 20% Other
Slide 41: Breakdown of Finance Cost
Breakdown of Finance Cost ₹ crore Particulars FY2021 FY2020 Change Q4 FY21 Q4 FY20 Change Total Interest Cost on Borrowings 1,305 1,401 (96) 265 298 (33) Other Finance Charges (refer to table below) 341 103 238 227 30 197 MTM on IC Loans and hedges 158 (159) 317 (121) (200) 79 NPV – Interest & Finan
Slide 42: Working Capital Analysis
Working Capital Analysis FY21: 9,422cr FY21: 11,874cr FY21: 13,789cr FY20: 7,850cr FY20: 11,428cr FY20: 11,555cr 131 113 118 119 90 81 80 71 Inventory Receivables Payables Net Working Capital FY2021 FY2020 Note: As a risk management measure, the company has been selling its receivables on non-recour
Slide 43: Summarised Cash Flow Statement
Summarised Cash Flow Statement (1st April 2020 to 31st March 2021) Cash generation from business ₹ crore Appropriation of cash ₹ crore Particulars Amount Particulars Amount PBT 4,377 Interest paid (1,655) Non cash items 4,047 Interest Income & Others 202 Working capital and other changes (504) Exp o
Slide 44: Guidance: FY2022
Guidance: FY2022 +7-10% +12-15% <2x Revenue Growth EBITDA Growth Net Debt to EBITDA 44
Slide 45: Sustainability
Open Ag - Reimagining Sustainability Economic Sustainability Environment Supply Sustainable Growth for All 45
Slide 46: The True Heroes of our Story
The True Heroes of our Story 46
Slide 47: Appendix
Appendix 47
Slide 48: Cost and Revenue synergy targets and achievements
Cost and Revenue synergy targets and achievements Cost Synergy Target, run rate (USD Mn) Cost Synergies Achieved (USD Mn) 882 Crore 200+ 120 Year 1 Year 2 Revenue Synergies Target, run rate (USD Mn) Revenue Synergies Achieved (USD Mn) 1,421 Crore 350+ 100 Year 1 Year 3 Actual synergies accrued to P&
Slide 49: Debt Profile: FY2021
Debt Profile: FY2021 Debt Maturity—Long term (USD Mn) Debt Distribution by currency (USD Mn) As of March 31, 2021 As of March 31, 2021 • +99% unsecured debt • $500mn acquisition loan replaced with sustainability loan @30bps lower interest and extended maturity by 2 years • Committed to Investment Gr
Slide 50: Balance Sheet: FY2021
Balance Sheet: FY2021 ₹ crore Particulars YTD Mar'21 YTD Mar'20 Particulars YTD Mar'21 YTD Mar'20 Equity Share Capital 153 153 Fixed Assets 1 Perpetual bonds 2,986 2,986 Tangible Assets 7,352 6,655 Retained earnings 17,748 16,143 Intangible Assets 11,147 11,857 Total Equity 20,887 19,282 Right of us