Upl Limited · NSE:UPL
Upl — ICICI Securities ESG Conference 2021
44 slides from Upl's conference presentation, Jun 25, 2021
Slide 1: ICICI Securities ESG Conference Presentation
ICICI Securities ESG Conference Working with farmers Presentation in 130+ countries to help them feed the 25 June 2021 world sustainably
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: Global Challenges and Importance of Agriculture
Global Challenges and Importance of Agriculture
Slide 4: Global Challenges and Statistics
Global Challenges and Statistics World Indicators-2020 Dynamics per minute Death from Hunger 17.3 Deforestation 22.6 ha Fresh Water withdrawal 8.8 million m3 Energy Consumption 1.26 PJ New Motor Vehicles 190 Urban Encroachment 4.7 ha Soil Degradation 23 ha Co2-C Emissions 21.9 Gg Note: The Ohio Stat
Slide 5: Resources for Agriculture
Resources for Agriculture • 40% of the Earth’s terrestrial surface is used for Agriculture • 70% of the global freshwater used for irrigation • Yet, 1 in 11 persons is food-insecure and 2-3 in 7 are malnourished Note: The Ohio State University, Carbon Management and Sequestration Centre Report 5
Slide 6: Role of Agriculture in mitigating climate change
Role of Agriculture in mitigating climate change • Cumulative manmade emissions since the yr 1750 is 675 GT of which • 75% is fossil fuels and • 25% is due to land use change • Sustainable Agriculture can transform agriculture land into carbon sink: potential to restore 500 GT back into the soils UP
Slide 7: UPL providing effective solutions to farmers to produce more from less and become resilient
UPL providing effective solutions to farmers to produce more from less and become resilient Driving sustainable agriculture Sustainable Agriculture Achieving transformational growth through technology integration ➢ Less land usage Lead the Agri Solutions space ➢ Less water usage through differentiat
Slide 8: UPL: A Global Leader in Sustainable Agriculture Solutions
UPL: A Global Leader in Sustainable Agriculture Solutions #1 #1 #5 Ag.chem company In BioSolutions In the Industry3 in ESG by Sustainalytics1 10k+ 13k+ 138 Employees Product Countries with sales Registrations presence ₹ 387B 21% ₹ 86B 26% FY21 Revenue 5Y Revenue Growth FY21 EBITDA 5Y EBITDA Growth 1
Slide 9: Sustainability at UPL
Sustainability at UPL
Slide 10: Our Approach to Sustainability
Our Approach to Sustainability Triple-Bottomline Policy & Management Sustainability Sustainability Sustainability Approach System Reporting Certifications Ratings Sustainability Policy Environment Sustainable Procurement Policy Human Right Policy HSE Policy Social Product Stewardship Policy Tax Poli
Slide 11: Key Achievements over the last 5 years
Key Achivements over the last 5 years Manufacturing Products and Services • Reduced specific water consumption by 21% • Transition from post patent to differentiated and sustainable products : Currently 29% portfolio • Reduced specific carbon emission by 26% • Reduced specific waste disposal by 45%
Slide 12: International Sustainability Ratings
International Sustainability Ratings UPL included in UPL Ranked No.1 among all UPL is logo holder of DJSI Sustainability Yearbook 2021 Agrochemicals globally in 2020. FTSE4Good Scores across international ratings substantially increased over the last 5 years 12 Note: Sustainalytics rating based on r
Slide 13: Committed To Set Science Based Targets
Committed To Set Science Based Targets UPL has committed to set science-based targets to keep global temperature increase below 2ºC 13
Slide 14: UN Sustainable Development Goals
UN Sustainable Development Goals
Slide 15: Our Priority SDGs
Our Priority SDGs Our Sustainability Ambition We have identified five priority SDGs for UPL among 17 SDGs. The United Nations adopted the ‘Agenda 2030’ with a total of 17 Sustainable Development Goals (SDGs) in September 2015 to end poverty, protect the planet, and ensure prosperity for all. Our amb
Slide 16: UPL Sustainability Goals By 2025
UPL Sustainability Goals By 2025 Sustainability vision Working with farmers to help them feed the world sustainably Goals by 2025 Goal Goal Goal Goal 1 2 3 4 Reduce Environmental Enhance World Enhance Sustainable Strengthen Footprint Food Security Sourcing Community Well-being Target Reduce 20% spec
Slide 17: Goal 1: Reduce Environmental Footprint
Goal 1: Reduce Environmental Footprint 1 2025 Target FY2021-22 Targets Initiatives in manufacturing for FY2021-22 Reduce manufacturing Reduce over FY2019-20 • Utilisation of biomass as a source of energy environmental footprint Specific CO2 • Recycling 100% plastics used in packaging from baseline F
Slide 18: Sustainable Manufacturing Technologies
Sustainable Manufacturing Technologies Recent successes in Waste Treatment and Rain Water Harvesting Scaleban DAF-MBBR Waste Treatment Implemented to recycle ETP treated Implemented for efficient biological water into cooling tower upto 250000 treatment of wastewater. This help ppm TDS. This help us
Slide 19: Sustainable Agriculture Practices: Creates an all-round Impact
Sustainable Agriculture Practices: Creates an all-round Impact Financial Environmental Societal Impact Impact Impact Increase Yield Soil Health Reduces use of Chemicals Reduce Risk Carbon Sequestration Reduced Air pollution Market linkage Managing water Farmer’s insurance • Pronutiva package • Minim
Slide 20: Sustainable Agriculture Practice: Global Carbon Initiative
Sustainable Agriculture Practice: Global Carbon Initiative The initiative Carbon programs An aggregation-based carbon farming model creates ▪ Carbon Sequestration new revenue streams for farmers to ensure use of all • Soil Organic Carbon regenerative practices helps preserve soil health and • No til
Slide 21: Reducing Air pollution: Avoiding Stubble burning
Reducing Air pollution : Avoiding Stubble burning The Problem Our Partners Over 5.7mn acres are burnt by farmers in Punjab and Haryana to clear out residue from mechanised harvesting before planting the next crop, causing an increase in airborne pollution and health issues, and reduction of soil nut
Slide 22: Reducing fresh water consumption in agriculture
Sustainable Agriculture Practice: Reducing fresh water consumption in agriculture • Revolutionary patented starch-based granule intended for soil incorporation in the root zone The positive impact of Zeba on the environment is one of the • It has the function to absorb water biggest differences betw
Slide 23: Sustainable Agriculture Practice: Spraying Services in India
Sustainable Agriculture Practice: Spraying Services in India Conventional Application AFS Application 23
Slide 24: Goal 2: Enhance World Food Security
Goal 2: Enhance World Food Security 2 2025 Target FY2021-22 Targets Projects for FY2021-22 Achieve 50% revenues Achieve over 30%+ R&D revenues from differentiated and • New products and mixtures to address farmer from differentiated and sustainable products pain-points • OpenAg Center: Technology Pa
Slide 25: Environmental friendly biologicals portfolio
Enhance World Food Security: Environmental friendly biologicals portfolio Young plant Development and First flowering and fruit First fruit First fruit establishment vegetative growth reproduction initiation growth Ripening Soil & Seed Health Plant Life Cycle Plant Stress & Stimulation Innovative Di
Slide 26: Pronutiva Case Study: Increasing plant yield and farmer income
Pronutiva Case Study: Increasing plant yield and farmer income Apple Average Color Program +15% Average Yield Increase +34% Average Russet Improvement +13.5% Improvement 2018, Poland By Numbers: -25% Average Residue Reduction Our ProNutiva program integrates natural BioSolutions with conventional cr
Slide 27: Solutions to combat post harvest losses
Enhance World Food Security: Solutions to combat post harvest losses Organic Zero Residue Near Harvest Protection Organic product line delivers natural solutions for the reduction In-season fruit protection from sun scald and dehydration which dramatically of chemical residues to meet retailer deman
Slide 28: Goal 3: Enhance Sustainable Sourcing
Goal 3: Enhance Sustainable Sourcing 3 2025 Target FY2021-22 Target Action Plan for FY2021-22 60% sustainable 25% Procurement from sustainable suppliers sustainable sourcing • Policy, framework and toolkit development. sourcing • India, where 40% of our manufacturing is based, will be our key Sustai
Slide 29: Goal 4: Strengthen Community Well-being
Goal 4: Strengthen Community Well-being 4 2025 Target FY2021-22 Target Projects for FY2021-22 • One Billion Hearts Initiative at Côte d'Ivoire with The Impact 3 million lives Impact Heart Fund to provide universal access to through livelihood, 1.5 million lives cardiovascular health for 1 billion pe
Slide 30: Governance - Board of Directors
Governance - Board of Directors
Slide 31: Senior, Experienced Directors on Board with a Dual Board Structure
Senior, Experienced Directors on Board Acting as Custodians for the Shareholders – With a Dual Board Structure Dual Board Structure Information Best Practices UPL Ltd. Expertise UPL Corp. Listed on Indian stock 22% held by exchanges ADIA & TPG Listed on the BSE and NSE in India Unlisted holding comp
Slide 32: UPL's Dual Board of Directors
UPL’s Dual Board of Directors Mr. Rajnikant Shroff Mr. Jai Shroff Mr. Vikram Shroff Mr. Arun Ashar Chairman and Global CEO Director Director – Finance Managing Director Global CEO of the Drives continuous Chartered Accounted Founder of UPL, UPL Group organizational with 42 years of Board of Director
Slide 33: Open Ag - Reimagining Sustainability
Open Ag - Reimagining Sustainability Economic Sustainability Environment Supply Sustainable Growth for All 33
Slide 34: Appendix
Appendix
Slide 35: Strengthen Community Well-being
Strengthen Community Well-being 4 FOCUS 1 INSTITUTION OF EXCELLENCE Shroff S Rotary Institute of Chemical Technology, Smt. Sandraben Shroff Gnyan Dham UPL Centre for Agriculture Excellence, India India School, India A residential farmers training centre to develop An engineering college to provide w
Slide 36: Strengthen Community Well-being (contd.)
Strengthen Community Well-being (contd.) 4 FOCUS 2 SUSTAINABLE LIVELIHOOD Agriculture Development in India with small and Applique Bien, a free training program through Cocoa & Forests Initiative (CFI) in Ghana and Ivory Coast marginal farmers autonomous fully equipped mobile units, in Burkina – Fas
Slide 37: Strengthen Community Well-being (contd.)
Strengthen Community Well-being (contd.) 4 FOCUS 3 NATURE CONSERVATION Sarus Conservation in India to conserve native crane Urban Plants Project in Colombia to promote Eco-Clubs in India to sensitize school and students on from India vegetable and ornamental plants environment and nature Conservatio
Slide 38: Strengthen Community Well-being (contd.)
Strengthen Community Well-being (contd.) 4 FOCUS 4A LOCAL AREA NEED Toilet and Sanitation Project in India by construction of Supporting community organisations We Are United (WAU), a well-structured employee toilets to improve school sanitation and drive household in Belgium volunteering programme,
Slide 39: Strengthen Community Well-being (contd.)
Strengthen Community Well-being (contd.) 4 FOCUS 4B NATIONAL AREA NEED My Super Ward which is a citizen centric App United Against Child Labour project in India - a Supporting Special Care Centre in India which is a integrating urban citizens of India with the proactive initiative to eliminate all f
Slide 40: Financial Highlights
Financial Highlights
Slide 41: 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 42: 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 43: 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 44: 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