Dodla Dairy Limited — Investor Presentation 2021

Aug 7, 2021

DODLA DAIRY LIMITED

MILK & MILK PRODUCTS Corporate Office : # 8-2-293/82/A, Plot No. 270-Q, Road No. 10C, Jubilee Hills, Hyderabad - 500033. DODLA DAIRY Ph : 040-4546 7777 Fax : 040-4546 7788

Date: 7 August 2021

MILK & MILK PRODUCTSDate: 7 August 2021The General ManagerThe ManagerDepartment of Corporate ServicesListing DepartmentNational Stock Exchanges of India LimitedBSE LimitedPhiroze Jeejeebhoy Towers"Exchange Plaza", 5th Floor,Plot No.C/1, G BlockDalai Street, FortMumbai-400 001Bandra-Kurla ComplexBandra (East), Mumbai 400051.ee/Scrip Code : DODLAScrip Code : 543306
DODLA DAIRY LIMITEDCorporate Office : # 8-2-293/82/A, Plot No. 270-Q, Road No. 10C,Jubilee Hills, Hyderabad - 500033.Ph : 040-4546 7777 Fax : 040-4546 7788
	DODLA DAIRY

Dear Sir/Madam,

Sub: Investor Presentation.

Pursuant to the Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 we are enclosing herewith the Investor Presentation.

The copy of the disclosure is available on the website of the Company i.e. www.dodladairy.com

This is for your information and record.

Thanking you,

Yours Faithfully, For Dodla Dairy Limited

chy

Ruchita Malpani Company Secretary & Compliance Officer ECSIN: EF010677B000093738

x An ISO 22000-2005 & 50001 EnMS Certified Company «

DODLA DAIRY INVESTOR PRESENTATION

DODLA

DAIRY

DAIRY TABLE OF CONTENT

01 About Us

Company Canvas

Strategic Advantages

Full Year Financials

Quarterly Highlights

ABOUT US

DODLA DAIRY DODLA DAIRY SNAPSHOT

About Us

Founded in 1995, Dodla Dairy is an integrated dairy company based in South India. Processes and sells milk and produces dairy-based valueadded products ("VAPs")

Read More

NOTES: *Data as per CRISIL report

DAIRY OUR JOURNEY SO FAR

DODLA

25+ years of dairy operations in partnership with marquee investors

NOTE: (1). Black River is the erstwhile name of the private equity fund Proterra which invested through its entity Black River Capital Partners Food Fund Holding (Singapore) Pte Ltd.

PRESENCE ACROSS DAIRY VALUE CHAIN

DODLA

DAIRY

DAIRY FEW OF OUR PRODUCTS

DODLA

PASTEURIZED POUCH MILK Full cream, Standardised Milk, Toned,

UHT MILK Toned, Double Toned CURD Sachet Curd, Bucket Curd, Cup Curd

GHEE Cow ghee, White ghee (buffalo ghee) and Premium ghee (full boiled white ghee)

ICE CREAM Vanilla, Elaichi, Pista, Badam, Chocolate, Strawberry, Pineapple

YOGHURT Plain, Strawberry, Vanilla, Chocolate & Mango

DODLA DAIRY ORGAFEED PRIVATE LIMITED: BUILT ON A STRONG FOUNDATION

INR 38 Mn Orgafeed Pvt Limited

Wholly Owned Subsidiary

Orgafeed primarily engaged in farming, breeding, agriculture, horticulture and allied activities such as poultry, dairy and livestock farming. Additionally, it is also in the business of seed crushers, manufacturing and dealing of groundnuts, gingerly, cotton and in the manufacturing of cattle feed.

Key Highlights:

• State-of-the-art manufacturing facilities at Kadapa, Andhra Pradesh
• Cattle feed plant capacity of 80 MTPD
• Selling directly to our farmers through our procurement network which is adjusted against the value of the raw milk supplied to us by such farmers

• We have tied up with various veterinarians to provide services to farmers for their milch animals
• During FY21, the Company's sales is INR 220 Mn, EBITDA

MEET THE EXECUTIVE TEAM

EXP: 25+ years of Dairy Exp EXP: 35+ years of Dairy Exp

Mr. Dodla Sunil Reddy Mr. Venkat Krishna Reddy Busireddy Mr. Anjaneyulu Ganji

Managing Director Chief Executive Officer Chief Financial Officer

23+ years with Dodla

EX: Tata Cummins Private Ltd & Maersk

DODLA DAIRY BOARD OF DIRECTORS

Ex: 22+ years of Dairy Exp Board Member: Nelcast Ltd

Dairy Exp: 40+ years | Previously Associated: National Dairy Research Institute, Tamil Nadu Dairy Corporation Ltd.

Mr. Dodla Sesha Reddy Mr. Raja Rathinam Mr. Raman Tallam Puranam Mr. Akshay Tanna Chairman & Non-Executive Director Independent Director Independent Director Non-Executive Nominee Director

EX: SBI Capital Markets Limited | Sundaram AMC Ltd.

EX: Deutsche Bank and Merrill Lynch | Partner – TPG Growth and Rise Fund | Board Member: Lenskart Solutions, Big Tree Entertainment, ESS Kay Fincorp Ltd

Mr. Madhusudhana Reddy

Whole-time Director

EX: Imperial Granites Limited Member of BAR council of Andhra Pradesh

Mr. Rampraveen Swaminathan Independent Director

EX: Cummins India Limited, International Paper |Board Member: Mahindra Logistics & Lords Freight

Ms. Ponnavolu Divya Independent Director

EX: Deutsche Bank Head of Change Governance | Board Member: Nelcast Ltd, NC Engergy Limited, Ponnas Infrastructure Pvt Ltd.

COMPANY CANVAS

DODLA DAIRY

OUR STRENGTH TO DELIVER COMPETITIVE ADVANTAGE

Processing Capacity

• Best practices to maximize capacity utilization, operating metrics and profitability
• Flexible and agile with Continuous improvement mindset

▪ All dairy processors have access to the same raw material and equipment; what distinguishes us is our dedicated employees and our strong relationship with farmers

Sales Volume

• Company have comprehensive product offering across different markets and channels
• Company conducts regular Product

OUR VALUE-ADDED PRODUCT INVESTMENTS

DODLA

DAIRY

STRONG VAP PRODUCT PORTFOLIO

Dodla Dairy is investing heavily in expanding its range of valueadded products, a move that is anticipated to boost margins. The company has been proactive in identifying and responding to customer preferences. It has invested significantly in valueadded products such as Curd, Ice Creams, Flavoured Milk, Lassi, Butter Milk, Ghee, Yoghurt and Butter to name a few.

FACTORS DRIVING THE VAP GROWTH:

• The rapid economic growth and urbanisation have resulted in a
• fundamental shift in consumer preferences and food preferences
• Consumer desire for branded, healthier, and more nutritional alternatives is growing
• Rising disposable incomes driving demand for value added dairy products
  • Post COVID-19 pandemic, structural changes occurred in
• consumer pattern a result of heightened hygiene awareness, which benefits the organised dairy industry

The company already has a strong distribution network in southern states for milk as well as value added products through which it can roll out existing and upcoming products

VAP Sales (in Rs. Mn)

DAIRY OUR OVERSEAS PRESENCE

DODLA

Dodla operates in Kenya and Uganda in Africa through its subsidiaries Lakeside Dairy Limited & Dodla Dairy Kenya Limited. Our African product portfolio is marketed under the "Dairy Top" and "Dodla +" brands and includes Milk, yogurt with different flavours, ghee, paneer, cheese and UHT milk.

Of total milk produced in African continent is primarily produced in Kenya, Uganda & Tanzania* 75%

Dairy player margins are higher due to limited competition and constrained supply of processed milk

Dodla has Similar Integrated Business model in Africa

Easier milk farming due to abundance of grazing lands for large animal population in Africa

Africa contributes to total 5% of world milk production. West Africa, with its growing population and demand for dairy is attractive market for dairy companies*

STRATEGIC ADVANTAGES

DODLA DAIRY

KEY STRENGTHS

DODLA DAIRY STRINGENT QUALITY CONTROL PROCEDURES

Well Defined Quality and Food Safety Procedures at Various Stagesfrom Procurement to Distribution

Procurement Stage Processing Stage

• VLCCs equipped with GPRS enabled electronic milk analysers which test for the fat and solid not fat (SNF) content of the raw milk

• Tests conducted at VLCCs for color and smell for segregation of poor quality of raw milk

• Quality checks documented in a quality manual to ensure raw milk meeting standards for further processing is procured

• At chilling centers and processing plants, the raw milk undergoes adulteration tests and neutralizer tests to detect contaminants

• FT-1 Milko-scanner at Hyderabad enables conduct of 26 adulterant tests automatically

• Well-defined and documented quality system, monitored at various stages

Quality Certified Products and Processing Plants

DAIRY FOCUSED ENGAGEMENT AND LONG-TERM RELATIONSHIP WITH DAIRY FARMERS

DODLA

REGULAR DIRECT PAYMENT

• Money paid directly to farmers in their bank accounts once every 10 to 15 days
• ~84% of total farmers payment covered as of Q1FY22

TRANSPARENCY IN PROCUREMENT

• Company has VLCCs equipped with GPRS enabled Electronic milk analyzers & Weigh scales
• This Enables testing of quality and quantity of raw milk procured

SUPPLY CATTLE FEED

• Incorporated Orgafeed Private Limited to help provide cattle feed to farmers through own procurement network
• Payments adjusted against value of raw milk supplied

TIE UP WITH VETERINARIANS

▪ Organize training camps to educate about ways to prevent common ailments for cattle

FACILITATE BANK LOANS

▪ Facilitate sanction of loans from regional banks to invest into cattle

DAIRY INVESTMENT RATIONALE

DODLA

Integrated Supply Chain

Strong Direct procurement model, eliminating middleman, reducing the cost of primary raw material and maintaining relationship with farmers

Automated Plants

Fully automated plants leading to improved operational efficiencies and reduce operating costs

Backward Integrated

Presence in cattle feed business through its subsidiary, leveraging existing supply chain resulting in better margin profiles for business

Proven Track Record

Proven track record of successfully integrating organic and inorganic assets with existing operations leading to substantial growth

Robust Balance Sheet

Strong cashflows led to robust Balance Sheet giving financial flexibility for Future Growth of company

DODLA DAIRY DODLA ESG COMMITMENT

ENVIRONMENT COMMITMENT

• We are dedicated to producing dairy products in a manner that is humane toward people, animals, and the environment, as well as beneficial to our societies
• We believe that preserving and rebuilding the environment is crucial in providing opportunities for future generations

SOCIAL COMMITMENT

• To ensure a sustainable future, we are focused on the development of healthy business model and products
• We are safeguarding people's safety and well-being in workplace, while continue to offer growth opportunities for them, and supporting the communities in which we live and work. This is all part of ensuring dairy plays a role in a sustainable food system

GOVERNANCE COMMITMENT

• We have established a diverse governance structure in order to fully use the resources of all partners in order to maximise synergy and enhance corporate governance
• We are committed to providing our shareholders with accurate, timely, regular and reliable information on the Company's activities, performance, prospects and strategy

FULL YEAR FINANCIALS

DAIRY KEY RATIOS – FULL YEAR

DODLA

2.3%

6.5%

▪ Revenue impacted in FY21 due to Covid-19 lockdown, resulting in loss of sales

▪ Margin improved as against FY20 on account of lower raw materials cost and better sales realization

NOTE: All numbers above have been rounded-off to zero decimal excl. percentage | Percentage have been rounded-off to one decimal

DAIRY KEY RATIOS – FULL YEAR

DODLA

▪ Robust growth and margins leading to high capital efficiency, low debt levels and an efficient working capital cycle

NOTE: All numbers above have been rounded-off to zero decimal excl. percentage & Multiples | Percentage have been rounded-off to one decimal | Multiple have been rounded off to two decimal

QUARTERLY HIGHLIGHTS Q1FY22

MANAGEMENT COMMENTARY

DODLA

DAIRY

I'm pleased to report that we were able to lean into our resilient business model to drive strong financial results to start this fiscal year. The strength of multi-channel business model fueled first-quarter revenue growth by 12.5%, despite the continued covid pandemic impacting out of home consumption. Our brand affinity is deepening, and we continue to grow in our chosen operating regions. We will continue to leverage our world-class infrastructure, operational expertise, and strong financial position to expedite investments across our key strategic growth drivers. The solid financial results reflect the strength of our company and our team's exceptional performance across the board, sustaining our growth momentum and increasing operational efficiency year-on-year basis.

Mr. Dodla Sunil Reddy

Managing Director

QUARTERLY OPERATIONAL HIGHLIGHTS

• AVERAGE MILK PROCUREMENT DURING Q1FY22 WAS AT 12.3 LLPD COMPARED TO 10.0 LLPD IN Q1FY21
• AVERAGE MILK SALES DURING Q1FY22 WERE AT 8.3 LLPD COMPARED TO 7.7 LLPD IN Q1FY21
• CURD SALES DURING Q1FY22 WAS AT 294.3 MTPD COMPARED TO 243.2 MTPD IN Q1FY21
• REVENUE FROM VALUE ADDED PRODUCTS (VAP) EXCLUDING FAT & FAT-BASED PRODUCTS WAS AT Rs. 1,399 Mn CONTRIBUTED 27.8% TO THE OVERALL DAIRY REVENUE DURING Q1FY22

NOTE: All numbers above have been rounded-off to one decimal excl. Revenue from Value Added Products (VAP) excluding fat & fat-based products

| Revenue from Value Added Products (VAP) excluding fat & fat-based products have been rounded-off to zero decimal.

DODLA DAIRY KEY RATIO - QUARTERLY

• Overall Margins are stabilizing after the muted Q4FY21 due to Covid-19 second wave impacting out of home consumption of our products
• Our PAT Margins are reverting to our initial levels, and we will continue to maintain them going ahead

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NOTE: All numbers above have been rounded-off to zero decimal excl. percentage. | Percentage have been rounded-off to one decimal

DODLA DAIRY

CAPITAL MARKET INFORMATION

Few of our Key Investors as on 30th June 2021	(% of Total Equity)
SBI CONSUMPTION OPPORTUNITIES FUND	6.83
INTERNATIONAL FINANCE CORPORATION	4.85
ASHOKA INDIA OPPORTUNITIES FUND	1.68
ADITYA BIRLA SUN LIFE MULTI-CAP FUND	1.06
DSP SMALL CAP FUND	1.02

DODLA DAIRY CONTACT US

Ganji Anjaneyulu

Chief Financial Officer investorqueries@dodladairy.com Tel: 040-4546 7777

Nikhil Morye | Krishn Bhaiya

Christensen Advisory

nmorye@christensenir.com | Kbhaiya@christensenir.com Tel: +91-9969567373 | +91-9940517368

ENCHANCED IMAGE OF OUR PLANT NEAR RAJAMUNDRY

Corporate Office

8-2-293/82/A, 270/Q, Road No 10-C, Jubilee Hills, Hyderabad – 500 033. Telangana, India. Tel: +91 40 4546 7777; Fax: +91 40 4546 7788

APPENDIX

DODLA DAIRY

BALANCE SHEET SUMMARY (FULL YEAR)

PARTICULARS	FY'18	FY'19	FY'20	FY'21
ASSETS
Non-current assets	3,745	5,374	5,697	5,703
Current assets	2,263	2,061	2,229	4,019
Total Assets	6,008	7,435	7,926	9,722
PARTICULARS	FY'18	FY'19	FY'20	FY'21
EQUITY AND LIABILITIES
Equity	3,398	4,068	4,335	6,580
Non-current liabilities	516	1,459	1,426	1,197
Current liabilities	2,094	1,908	2,165	1,946
Total liabilities	2,610	3,367	3,591	3,143
Total equity and liabilities	6,008	7,435	7,926	9,722

• Company is steadily expanding its capabilities and capacities which is reflected in our growth of Non-current assets from FY18-FY21
• Rise in Current asset post IPO accounting for increase in cash & cash eq on books

SAFE HARBOR

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Dodla Dairy Ltd (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.

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.

GLOSSARY

LLPD: Lakhs Liter per day

MTPD: Metric Tonnage Per day

UHT milk: Ultrahigh Temperature Processed Milk

VLCC: Village Level Collection Center

DRP: Dodla Retail Parlours

LPA: Liters Per Annum

MT: Metric Tonnes

VAP: Value-added Product

FII: Foreign Institutional Investor

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