Apcotex Industries Limited — Investor Presentation 2021

Jul 29, 2021

==> picture [560 x 80] intentionally omitted <==

Date: 29[th] July 2021

To, Manager - Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001 Scrip Code: 523694	To, The Manager - Listing Department, The National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, Block G, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 Symbol: APCOTEXIND

Sub : Earnings Presentation – July 2021 (Q1 – FY 2021-22)

Dear Sir/Madam,

Please find enclosed herewith Earnings Presentation – July 2021. The same is for your reference and records.

Thanking you,

For Apcotex Industries Limited

==> picture [130 x 31] intentionally omitted <==

Anand V Kumashi Company Secretary

==> picture [548 x 82] intentionally omitted <==

==> picture [48 x 53] intentionally omitted <==

EARNINGS PRESENTATION Q1-FY22

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Executive Summary
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

==> picture [703 x 18] intentionally omitted <==

----- Start of picture text -----

OVERVIEW
----- End of picture text -----

• Apcotex Industries Ltd (Apcotex) is a leading producer of Synthetic Rubber (Nitrile Rubber, High Styrene Rubber, Nitrile Polyblends and Nitrile Powder) and Synthetic Latex (XSB Latex, VP Latex, Styrene Acrylics and Nitrile Latex) in India.

• The company has one of the broadest range of Emulsion Polymers available in the market today.

• The various grades of Synthetic Rubber find application in products such as Automotive Components, Hoses, Gaskets, Rice De-husking Rollers, Printing and Industrial Rollers, Friction Materials, Belting and Footwear.

• Apcotex is listed on both the BSE and NSE and has an approximate market capitalisation of INR 16,660.4 Mn as on 30[th] June, 2021.

==> picture [229 x 21] intentionally omitted <==

----- Start of picture text -----

BUSINESS MIX
----- End of picture text -----

==> picture [220 x 21] intentionally omitted <==

----- Start of picture text -----

MARQUEE CLIENTS
----- End of picture text -----

==> picture [220 x 21] intentionally omitted <==

----- Start of picture text -----

MANUFACTURING
----- End of picture text -----

▶ SYNTHETIC LATEX

• Paper/ Paper Board, Carpet, Construction, Tyre Cord, Speciality.

▶ SYNTHETIC RUBBER

• Automobile, Footwear, Rice Rolls.

• SYNTHETIC LATEX

▷ ITC Ltd, BILT, JK PAPER, Pidilite Industries, MRF, SRF,Century Enka, etc. ▶ SYNTHETIC RUBBER

▷ Paragon Footwear, Ajanta Footwear, Relaxo Footwear, Jayshree Polymers, Parker Hannifin, etc.

• Taloja Facility: Maharashtra

• 55,000 MTPA Synthetic Latex

• 7,000 MTPA High Styrene Rubber

• Valia Facility: Gujarat

• 21,000 MTPA Nitrile Rubber and Allied Products.

▷ .

Operational Revenue - INR 5,406 Mn

Operating EBITDA - INR 685 Mn

PAT- INR 442 Mn

2

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Company Overview
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

==> picture [286 x 32] intentionally omitted <==

----- Start of picture text -----

Op. Revenue (INR Mn) and
Operating EBITDA Margin (%)
----- End of picture text -----

• The company’s Taloja plant was established in 1980 as a division of Asian Paints (India) Ltd. In 1991, the division was spun off as a separate company, which was headed by Mr. Atul Choksey, former MD of Asian Paints. The company is currently headed by Abhiraj Choksey who is the Managing Director.

• Apcotex has a significant global presence and for last few years has done business in all continents and several countries.

• It is one of the leading producers of Synthetic Rubber and Synthetic Latex in India.

• Its state-of-the-art manufacturing plants are strategically located on the western coast of India.

==> picture [278 x 157] intentionally omitted <==

----- Start of picture text -----

7000 18.0%
15.8%
16.0%
6000
5000 10.8% 12.7% 14.0%
12.0%
6.7%
4000 10.0%
3000 8.0%
6.0%
2000
4.0%
1000
2.0%
6,257 4,960 5,406 1,852
0 0.0%
FY19 FY20 FY21 Q1-FY22
Revenue EBITDA Margin
----- End of picture text -----

• Over the past several years, the company has developed a strong Research & Development base, which has enabled them to develop, manufacture and export products and compete effectively against global players.

• Apcotex Industries has a workforce strength of over 450 fulltime employees.

3

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Q1-FY22 Financial Highlights
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

==> picture [297 x 25] intentionally omitted <==

----- Start of picture text -----

Q1-FY22 Financial Highlights
----- End of picture text -----

INR 1,852 Mn INR 293 Mn Operational Revenue Operating EBITDA 15.82% INR 219 Mn Operating EBITDA Margin Net Profit 11.83% INR 4.22/share Net Profit Margin EPS

4

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Q1-FY22 Operational Highlights
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

• Business Performance:

• Revenue: Strong Quarterly Operating Revenue of INR 185 Cr in Q1 FY 2021-22. Volumes were a little lower than Q4, FY 2020-21 due to the second wave of Covid-19 and a partial maintenance shutdown at Taloja plant in June 2021.

• Exports: Highest ever export sales - 24% of overall turnover for the quarter.

• EBITDA: Strong Quarterly Operating EBITDA of INR 29.33 Cr, similar to Q4.

• PBT/PAT: Quarterly PBT and PAT of INR 27.56 Cr and INR 21.86 Cr respectively.

Other Highlights:

• Anti-dumping Duties on NBR: For both petitions, after a thorough investigation DGTR recommended antidumping duties but the Ministry of Finance has decided not to notify the duties. As of now no ADD exists for NBR imports into India.

• Major Capex Projects

• All debottlenecking projects will be completed in Q2, FY 2021-22 giving additional revenue of INR 60-70 Cr p.a. once completed.

• Obtained initial Environmental approvals in Q1 to start construction for 2 new brownfield projects – one each at Valia and Taloja. Total capex investments expected to be around INR 140-150 Cr over the next 4 quarters.

• Taloja Plant 3-year agreement with unionized workmen amicably signed in this quarter.

5

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Q1-FY22 Income Statement (As per IndAS)
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

Particulars (INR Mn)	Q1-FY22	Q1-FY21	Y-o-Y	Q4-FY21	Q-o-Q
Operational Revenue	1,852	599	209.2%	1,869	(0.9)%
Total Expenses	1,559	642	142.8%	1,569	(0.6)%
Operating EBITDA	293	(43)	NA	300	(2.3)%
Operating EBITDA Margin	15.82%	-	NA	16.05%	(23) Bps
Depreciation	33	37	(10.8)%	32	3.1%
Finance Cost	8	9	(11.1)%	8	NA
Other Income	24	19	26.3%	20	20.0%
PBT	276	(70)	NA	280	(1.4)%
Tax	57	(3)	NA	54	5.6%
PAT	219	(67)	NA	226	(3.1)%
PAT Margin	11.83%	-	NA	12.09%	(26) Bps
Other Comprehensive Income	77	35	120.0%	15	NA
Total Comprehensive Income	296	(32)	NA	241	22.8%
Diluted EPS (INR)	4.22	(1.29)	NA	4.36	(3.2)%

6

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Historical Income Statement
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

Particulars (INR Mn)	FY19	FY20	FY21	Q1-FY22
Operational Revenue	6,257	4,960	5,406	1,852
Total Expenses	5,581	4,626	4,721	1,559
Operating EBITDA	676	334	685	293
Operating EBITDA Margin	10.80%	6.73%	12.67%	15.82%
Depreciation	118	134	145	33
Finance Cost	18	13	38	8
Other Income	77	59	65	24
PBT	617	246	567	276
Tax	151	80	125	57
PAT	466	166	442	219
PAT Margin	7.45%	3.35%	8.18%	11.83%
Other Comprehensive Income	(2)	(56)	177	77
Total Comprehensive Income	464	110	619	296
Diluted EPS (INR)	8.99	3.21	8.52	4.22

7

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Balance Sheet
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

Particulars (INR Mn)	FY20	FY21
Shareholders Fund	2,513	3,054
Equity Share Capital	104	104
Other Equity	2,409	2,950
Total Non Current Liabilities	349	241
Deferred Tax liabilities	57	105
Borrowings	226	60
Long Term Provision	29	31
Other Financial Liabilities	37	45
Total Current Liabilities	1,107	1,222
Short Term Borrowings	189	51
Trade Payables	460	589
Other Current Liabilities	374	438
Short Term Provision	5	5
Other Current Liabilities	79	139
TOTAL EQUITY & LIABILITIES	3,969	4,517

Particulars (INR Mn) FY20 FY21	~~8~~
Total Non Current Assets 1,916 2,383
Property,Plant and Equipment 1,239 1,441
Capital Work inprogress 193 116
Non Current Investments 334 682
Intangible Assets 9 7
Current Tax Assets(net) 55 73
Other Non Current Assets 86 64
Total Current Assets 2,053 2,134
Investments 211 142
Inventories 597 558
Trade Receivables 891 1,048
Cash & Cash Equivalents 117 106
Other Bank Balances 43 44
Short Term loans & Advances 3 4
Other Financial Assets 60 72
Other Current Asset 131 160
TOTAL ASSETS 3,969 4,517

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Historical Performance Indicators
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

Operational Revenue (In Mn)

Operating EBITDA and EBITDA Margin

PAT and PAT Margin

==> picture [687 x 126] intentionally omitted <==

----- Start of picture text -----

7000 6,257 800 11.9% 12.7% 14.0%
8.2%
6000 5,382 4,960 5,406 700 10.8% 12.0%500450 7.2% 7.5%
5000 600 10.0%400
4000 500 6.7% 350
8.0%300
400
3000 6.0%250 3.4%
300 200
2000 200 4.0%150
1000 100 638 676 334 685 2.0%10050 386 466 166 442
0 0 0.0% 0
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
----- End of picture text -----

==> picture [271 x 138] intentionally omitted <==

----- Start of picture text -----

10 Asset Turn Over Ratio
8.3
8
6.8
6
4.0 3.8
4
2
0
FY18 FY19 FY20 FY21
----- End of picture text -----

==> picture [288 x 127] intentionally omitted <==

----- Start of picture text -----

0.250 Debt to Equity
0.20
0.200
0.150
0.100 0.07
0.050
0.01
-0.01
0.000
FY18 FY19 FY20 FY21
-0.050
----- End of picture text -----

9

==> picture [679 x 36] intentionally omitted <==

----- Start of picture text -----

Disclaimer
----- End of picture text -----

==> picture [28 x 30] intentionally omitted <==

Apcotex Industries Ltd Disclaimer:

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apcotex Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

For further details, please feel free to contact our Investor Relations Representatives:

==> picture [70 x 59] intentionally omitted <==

Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-49039500 Email: apcotex@valoremadvisors.com

==> picture [54 x 59] intentionally omitted <==

Mr. Anand Kumashi Apcotex Industries Limited CIN: L99999MH1986PLC039199 Email: avkumashi@apcotex.com

10

Thank You