Arrow Greentech Limited — Investor Presentation 2019

Nov 27, 2019

zr" November 2019

To Manager (CRD) BSE Ltd. (BSE) P.J. Towers, Dalal Street, Mumbai 400 001

Manager (CRD) National Stock Exchange of India Ltd. (NSE) Exchange Plaza, Sandra Kurla Complex Sandra (E), Mumbai - 400051

fil!: Script Code- 516064 Script Code-ARROWGREEN Sub: Presentation on Business Performance of the Company

Dear Sir,

With reference to captioned subject matter, please find enclosed herewith presentationon business performance of the Company.

This is for your information and records.

Thanking you,

Yours faithfully,

ARROW GREENTECH LTD

Corporate Office : Solitaire Corporate Park BuildingNo 3 U it N . Phone: +91-22-4074 9000 • fax: +91-22-407 •, m. o 372. 7th Floor, Guru HargovindjiMarg, Chakala Andheri . Works: Plot No. 5310 531 GIDC Ankl h 493099Email: contact@arrowgreentech.com• Website· www' arr (Etasth), Mumbai 400093, Maharashtra, INDIA. • • , es war - 92002 G t INDIA · · owgree ec com CIN No: L21010MH1992PLC069281 ' ujara • Phone: +91-2646-224743/224744 E- ·1· k@ . ma, · an arrowgreentech.com

Investor Presentation – November 2019

Safe Harbor

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Arrow Greentech 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 what so ever. 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.

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

WSF

Key Business

Verticals

IP &

Avery

Pharma

Security

Products

BIO PLAST

Consolidated Highlights

Our increased capacity utilization of Water Soluble Film has led to double digit growth in H1FY20. However, the ramping up of capacity is slower than expected. Developing new grades has always been our motive and the management continues that journey for FY 20 as well. Recently we achieved breakthrough in the exports business in new market with one of our major client.

Fire in one of the unit in Ankleshwar Factory - Due to fire incidence in one of unit in Ankleshwar factory, certain tangible assets and inventory were damaged and destroyed. Company has taken adequate insurance cover and does not expect significant impact on financials. However, water soluble film production and sales volume in H2FY20 will be adversely affected due to this incidence.

We are setting up GMP WHO approved, state of the art manufacturing facility and R&D centre near Ahmedabad, for manufacturing our patented products in Health, Hygiene and Pharma sector.

Project execution is going on full pace and we expect to start commercial production in Q4 FY20. Management is in talks with major Pharma companies to consume our entire production in order to enter the sale revenue cycle at the early stage of development / production.

We have taken varied steps to revive IP revenue. We are in process of filing more patents and monetising of our few more patents. We expect this business to grow in the coming quarters. In a strategic move the company has decided to venture in to new international markets. We are actively bidding for manufacturing and supply of security products under Govt. of India's make in India (MII) scheme and we expect in coming years our security products manufacturing facility will boost our topline and bottomline.

Klenz The investment phase for Klenz is over. Our modified business model for this vertical is expected to support our topline growth. We are also working on white labelling of water soluble capsules for cleaning solution.

Eco-friendly solutions (Bioplast) to replace toxic plastic for future generations. We are in process to grab the opportunities with ban on use of plastics. We are expecting fast movers advantage in this area as we are one of the very few companies in India that has been granted with a license ( CPCB) and also having a tie up with one the leading global manufacturers of the raw material.

About the Company

Arrow Greentech in a Snapshot …

Experienced Board Of Directors

Mr. Shilpan P. Patel Chairman & M.D

Mr. Neil Patel, Joint Managing Director

Mr. Haresh Mehta Independent Director

Mr. Harish Mishra Independent Director

Mr. Dinesh Modi Independent Director

Mr. Dinkar Trivedi Independent Director

Ms. Aradhana Singh Independent Director

Corporate Structure

Business Overview

Water Soluble Film (WSF)

Development, Production & Marketing of Wide Range of Water Soluble Film

Klenz Pro

Arrow's Klenz Pro is the most concentrated range of hygiene, in water-soluble capsules. Does not generate plastic waste and is firmly committed to the environment

4

Intellectual Property

Total of 39 granted patents across the World, based on Core Technology of Water Soluble Film

Bio Plast

An eco-friendly solutions to replace toxic plastic for our future generation. This is 100% Bio-compostable, made from renewable plant resources and has a diverse range of applications such as carry bag, garbage bag and food container etc.

Edible Film

This is based on Water soluble film technology which allows a small quantity of Active Ingredient to be delivered in a user friendly format. This is a new drug delivery system. The Company has a patent for this product

Water Soluble Film (WSF)

What is Water Soluble Film (WSF) ?

Liquid Detergent Packed in WSF

Packaging material that is environmentally safe & fully biodegradable when disposed in water or waste

What it WSF ? Properties of WSF

• Optimum Tensile Strength
• Flexibility for using in multiple forms of packaging
• Excellent Moisture/Heat Sealing
• Eco-friendly

Dissolves Completely

materials

Applications of WSF

Embroidery Film

Help to avoid puckering and slipping of the fabric and make it more stable

Mould Release Film

Forms a barrier between parts and mold surfaces that are still curing. Film is resistant to solvents and yet is water-soluble

Watersol is the trademark product of Arrow Greentech Ltd.

Use of WSF in Packaging Film

State of the art Manufacturing Facilities

State of art Manufacturing Facilities

Ankleshwar, Gujarat : ~ 350 Km far from Bombay Land on 99 years renewable lease from GIDC R&D Centre with Modern Equipment's Common Utilities and R&D available for future expansion

Global Presence

Presence in Europe, Asia, North & South America and Africa – mainly 3 supply points located in India, United Kingdom and South America

Wide Distribution channel to service our clients from around the world

What is Arrow Klenz Pro?

Klenz Pro is the most concentrated range of hygiene chemicals available in India

Product Range : General Cleaning, Kitchen Cleaning, Industrial Cleaning and Laundry Cleaning

First company to successfully launch cleaning chemical in water-soluble film

Designed in collaboration with Proquimia (Spain)

Caters to Hotels, Pharmaceutical plants, Manufacturing Industry, Auto Mobile Industry, Corporate offices, Facility Management companies, Government bodies

Benefits of Klenz Pro

Klenz Pro Products are all compliant with European 2017 norms and have a wide range of ECO-LABELED products in the portfolio

Distribution Channel

Company's website –
http://klenzpro.com/general
_cleaning.html

KLENZ PROiufacturer of a wide range of products which include General Cleaning Product, Kitchen Cleaning Product, Laundry Product and Personal Care Product.General Cleaning ProductMuch time is spent in buildings or facilities for professional, cultural or training purposes or to perform leisure activities, etc. In this kind of setting, where thevisual aspect and comfort are two main objectives to be achieved, the quality of cleaning products is extremely important. Proquimia offers the appropriatesolutions for the cleaning, disinfection and ambience of your installations.Yes! I am interested	Mumbai, Maharashtra$E$ Products & Services	Home	About Us	Send E-mailContact Us
				C Request Callback

Our Marketing & Launch Strategy along with Quality built Products made us win the "Best Innovative Chemical Product" in to build a strong Distribution and Sales team which will help our long-term vision

Intellectual Property

Key Granted Patents across the Globe

39 patents granted across the world

Key Granted Patents across the Globe

21 Printing - SAM Security Health & Hygiene Packaging

Region	No. of PatentsGranted
India	15
Australia	4
South Africa	4
Europe	7
USA	6
UK	1
Eurasia	1
Russia	1

BioPlast

BioPlast

An eco-friendly green solution to replace toxic plastic for our future generation

Replacement of Plastics packaging, made from petrochemicals

Have in-licensed the technology for manufacturing the bioplast film from Biotec, Germany that is compliant with the European standards (EN 13432)

Biotec's expertise in bioplastics and Arrow's water soluble film technology together could revamp the packaging with sustainable solutions

Future proposed products such as Tea-Coffee portion packs, aluminum foil, jute hessian bags when laminated inside with bio compostable film will provide dual advantages of heat blockage inside the packaged material and sustainability

Edible Film

Edible Films

01 Technology is a relatively new development, but broadly based on water soluble film technology, which also allows small quantities of active ingredients to be delivered in a user-friendly format

02

Edible film division will work closely with clients to create the most effective thin film product and process solutions. this patent has now been granted in several countries, including Australia, South Africa, Europe and India. This patent is still being prosecuted in the USA

03

Recently invested into our new Wholly Owned Subsidiary (WOS) Company, Avery Pharmaceuticals Private Ltd. to manufacture, produce or to otherwise deal in pharmaceuticals and other related products. Arrow's water soluble edible film foray will be limited to the use of its patented drug (Active) delivery system, using edible Water Soluble Film for many major pharmaceutical and nutraceutical companies

Strategic Benefits & Growth Opportunities

Key Entry Barriers

Future Potential for Water Soluble Film

Ban of Plastics will help grow BioPlast Business

• Our products are plasticizer-free, thermoplastic material that contains natural potato starch and other biologically sourced polymers
• The absence of plasticizer allows the material to be easily processed to manufacture products of consistent quality
• Due to its composition the material is edible, digestible, water soluble and will biodegrade readily in an industrial or domestic composting environment

Growth Drivers

Intellectual Property

• Monetize the existing Patents by selling or licensing the Patents
• R&D to develop more of Products & Processes and file New Patents

Water Soluble Film

• Focussing on high margin applications thereby moving up the value chain

Partnerships / JV's

• Partner / JV with the players in the FMCG and Pharmaceuticals to develop products for the end consumers using our Patents
• Water Soluble Film / Packaging to be provided by Arrow Greentech Film Division

KLENZ

• White labelling
• Once KLENZ reaches a sizeable turnover, we shall manufacture the chemicals ourselves

Financials

Consolidated Profit & Loss Statement

Particulars(Rs. In Lakhs)	Q2 FY20	Q1 FY20	H1 FY20	H1 FY19
Net Revenue from Operations	568.51	453.23	1021.74	1154.34
Cost of Material Consumed	112.90	90.58	203.48	275.1
Purchase of Stock-in-Trade	39.87	229.83	269.7	565.85
Change in Inventories	101.66	-58.26	43.4	-128.04
Total Raw Material	254.43	262.15	516.58	712.91
Employee Expenses	175.43	207.27	382.7	418.33
Other Expenses	298.13	255.39	553.53	714.82
EBITDA	-159.48	-271.58	-431.07	-691.72
Other Income	41.32	93.43	134.75	85.46
Depreciation	88.63	85.90	174.53	202.72
EBIT	-206.79	-264.05	-470.85	-808.98
Finance Cost	10.67	2.74	13.41	0
Profit before Tax	-217.46	-266.79	-484.26	-808.98
Tax	21.73	3.72	25.45	26.94
Profit After Tax	-239.19	-270.51	-509.71	-835.92
Other Comprehensive Income (Net of Tax)	-17.71	-112.58	-130.29	107.29
TOTAL COMPREHENSIVE INCOME	-256.90	-383.09	-640.00	-728.63
EPS (Rs.)	-1.99	-2.26	-4.25	-7.03

Standalone Profit & Loss Statement

Particulars(Rs. In Lakhs)	Q2 FY20	Q1 FY20	H1 FY20	H1 FY19
Net Revenue from Operations	800.86	660.23	1461.09	1663.21
Cost of Material Consumed	112.89	90.58	203.47	275.11
Purchase of Stock-in-Trade	39.88	229.82	269.7	573.76
Change in Inventories	96.81	-61.26	35.55	-103.64
Total Raw Material	249.58	259.14	508.72	745.23
Employee Expenses	162.86	194.33	357.19	399.13
Other Expenses	261.29	226.54	487.83	636.12
EBITDA	127.13	-19.78	107.35	-117.27
Other Income	129.13	36.77	165.9	333.74
Depreciation	77.51	80.79	158.3	185.76
EBIT	178.75	-63.8	114.95	30.71
Finance Cost	3.7	2.74	6.44	0
Profit before Tax	175.05	-66.54	108.51	30.71
Tax	21.73	3.72	25.45	26.94
Profit After Tax	153.32	-70.26	83.06	3.77
Other Comprehensive Income (Net of Tax)	-0.47	-0.47	-0.94	-1.33
TOTAL COMPREHENSIVE INCOME	152.85	-70.73	82.12	2.44
EPS (Rs.)	1.31	-0.6	0.71	0.03

Consolidated Balance Sheet

EQUITY AND LIABILITIES	Sep-19	Mar-19
EQUITY
Equity Share Capital	1174	1174
Other Equity	5900	6612
Shareholder`s Funds	7074	7786
Non Controlling Interest	152	163
LIABILITIES
Non-current liabilities
Provisions	18	16
Borrowings	440	4
Deferred Income tax liabilities	38	37
Other Non -Current liabilties	138	0
Total -Non Current liabilities	634	57
Current Liabilities
Financial Liabilities
Trade payables	181	343
Other financial liabilities	573	256
Provisions	18	13
Other Current liabilities	36	38
Total Current liabilities	809	649
TOTAL -EQUITY AND LIABILITIES	8669	8656

ASSETS	Sep-19	Mar-19
Non -Current Assets
Property, plant and equipment	2044	2111
Capital Work in Progress	717	144
Investment Property	14	14
Intangible Assets	302	158
Intangible Assets Under development	86	98
Financial Assets
Investments	1335	1660
Loans	69	45
Other Financial assets	22	64
Tax assets (net)	110	117
Other non-current assets	870	673
Total -Non-current Assets	5569	5084
Current assets
Inventories	518	589
Financial Assets
Trade receivables	561	760
Cash and Cash equivalents	1301	1770
Bank balances other than cash and cash
equivalents	259	64
Loans	1	10
Other Financial assets	16	2
Other current assets	443	376
Total Current Assets	3100	3571
TOTAL -ASSETS	8669	8656

Standalone Balance Sheet

EQUITY AND LIABILITIES	Sep-19	Mar-19
EQUITY
Equity Share Capital	1174	1174
Other Equity	3620	3613
Shareholder`s Funds	4794	4787
LIABILITIES
Non-current liabilities
Provisions	18	16
Borrowings	440	0
Deferred Income tax liabilities	37	36
Other Non -Current liabilties	19	0
Total -Non Current liabilities	514	53
Current Liabilities
Financial Liabilities
Trade payables	227	308
Other financial liabilities	536	269
Provisions	18	13
Other Current liabilities	23	33
Total Current liabilities	805	624
TOTAL -EQUITY AND LIABILITIES	6114	5463

ASSETS	Sep-19	Mar-19
Non -Current Assets
Property, plant and equipment	1127	1147
Capital Work in Progress	180	64
Investment Property	14	14
Intangible Assets	195	157
Intangible Assets Under development	43	56
Investment in Subsidiaries and Associates	54	54
Financial Assets
Investments	868	1170
Loans	1094	471
Other Financial assets	22	16
Tax assets (net)	68	74
Other non-current assets	688	270
Total -Non-current Assets	4354	3491
Current assets
Inventories	487	550
Financial Assets
Trade receivables	502	704
Cash and Cash equivalents	181	302
Bank balances other than cash and cash
equivalents	259	64
Loans	1	10
Other Financial assets	2	1
Other current assets	327	341
Total Current Assets	1759	1972
TOTAL -ASSETS	6114	5463

For further information, please contact

Arrow Greentech Limited CIN: L21010MH1992PLC069281 Ms. Poonam Bansal poonam@arrowgreentech.com

www.arrowgreentech.com

THANK YOU