Globus Spirits Limited — Interim / Quarterly Report 2022

Aug 9, 2021

Result Presentation | August 2021

Bulk Alcohol | Value Segment | Franchise Bottling | Premium Segment

TABLE OF CONTENT

Q1FY22 Performance

Performance Highlights	3
Segmental Performance	5
Financial Highlights	8

Annexure

Company Overview	10
Financials	20
Shareholding Pattern	26

Q1FY22 | Performance Highlights Q4 FY21 | Performance Highlights

Almost full quarter of operations despite second wave of COVID-19 in Q1FY22

Key Business Updates Q4 FY21 | Performance Highlights

Consumer Business:

• The share of Consumer Business grew to 42% in Q1FY22 from ~35% in Q1FY21, on the back of both volume and value growth
• The Value Segment sales volumes grew by 65% YoY to 3.3 Mn cases and realisations by 16% YoY and 10% QoQ to Rs 462.5 per case in Q1FY22
• Manufacturing Business posted growth in volumes sold both on YoY and QoQ basis in Q1FY22

Expansion Update:

• West Bengal: Expansion work of additional 140 KLPD is nearing completion; Likely to be commissioned by September 2021
• Jharkhand: Planned expansion of 140 KLPD; Work has commenced recently and the project is expected to be commissioned in FY23
• Additional 140 KLPD expansion under evaluation between Bihar and another location; work expected to start later in FY22

Status of Unibev Merger:

• Shareholders, Secured Creditors and Unsecured Creditors of both the companies have already approved the scheme
• Final hearing at NCLT which was initially fixed for 10-Jun-21 has been postponed to 26-Aug-21 due to the second wave of Covid-19

Consumer Segment- Value Added, High Margin

Impact of second wave of COVID-19 in Q1FY22

Aggregate Consumer Segment Revenue in Q1FY22 is Rs. 1,555 Mn and sales volume of 3.38 Mn cases

Aggregate Value Segment realizations increased 16% YoY and 10% QoQ to Rs. 462.5 per case in Q1FY22

Note: Value Segment includes all Country Liquor and Medium Liquor Brands & Premium Segment includes all UnIbev brands

Manufacturing Business – Strong Backbone

Strong pick-up post lockdown; facilities ramped up to reach high utilisation levels

Bulk Alcohol – Revenue trend during the past 1 year (Rs. Mn )

Despite 2nd wave of Covid-19, the Capacity Utilization in Q1FY22 stood at 98% (58% in Q1FY21 and 99% in Q4FY21)

Bulk Alcohol sales volumes stood at 29.9 Mn litre in Q1FY22, up 45% YoY and 5% QoQ

Average realization for bulk alcohol came in at Rs. 51.6 per litre in Q1FY22

Net Revenue Mix – Segment-wise

Moving towards a more favourable mix with higher share of Consumer Business

• Share of Consumer business segment increased by ~650 bps YoY from 35.5% in Q1FY21 to 42% in Q1FY22
• Manufacturing segment includes revenue from Bulk Alcohol, Franchise Bottling, Hand Sanitisers and Others (by-products)

Profit & Loss Highlights | Q1FY22

Consolidated financials

Particulars (Rs Mn)	Q1 FY22	Q1 FY21	YoY (%)	Q4 FY21	QoQ(%)	FY21
Gross Revenues	5,506.2	2,919.8	88.6%	4,909.1	12.2%	16,721.3
Less-Excise duty	1,801.0	618.9	191.0%	1,342.3	34.2%	4,413.6
Net Revenues from Operations	3,705.2	2,300.9	61.0%	3,566.8	3.9%	12,307.7
Other Income	10.8	8.7	24.1%	13.1	-17.3%	65.6
Total Income	3,716.0	2,309.6	60.9%	3,579.9	3.8%	12,373.3
Total Expenditure	2,724.1	1,907.8	42.8%	2,687.4	1.4%	9,760.7
Consumption of Material	1,839.5	1,397.4	31.6%	1,744.8	5.4%	6,531.6
Employee Cost	144.9	90.8	59.7%	90.5	60.2%	384.2
Other Expenditure	739.7	419.7	76.2%	852.2	-13.2%	2,844.8
EBITDA	991.9	401.8	146.9%	892.5	11.2%	2,612.6
Depreciation & Amortization	103.4	95.6	8.2%	110.9	-6.8%	406.6
EBIT	888.5	306.2	190.2%	781.6	13.7%	2,206.0
Finance Cost	39.3	50.9	-22.8%	40.9	-4.0%	188.3
PBT	849.3	255.3	232.6%	740.7	14.7%	2,017.7
Tax Expense (Current, Deferred Tax)	292.6	68.4	327.6%	234.4	24.8%	609.5
PAT (From ordinary activities)	556.7	186.9	197.8%	506.3	10.0%	1,408.2
EPS	19.33	6.50	197.4%	17.58	10.0%	48.90

Note: Higher Excise Duty (YoY and QoQ) is on account of higher share of Rajasthan Medium Liquor (RML) category in Value Segment, which carries higher excise duty

Key Ratios | Q1FY22

Consolidated financials

Key Ratios (% of Total Income)	Q1 FY22	Q1 FY21	Q4 FY21	FY21
EBITDA Margin	26.7%	17.4%	24.9%	21.1%
PAT	15.0%	8.1%	14.1%	11.4%
Total Expenditure	73.3%	82.6%	75.1%	78.9%
Raw material	49.5%	60.5%	48.7%	52.8%
Employee Cost	3.9%	3.9%	2.5%	3.1%
Other Expenditure	19.9%	18.2%	23.8%	23.0%
Finance Cost	1.1%	2.2%	1.1%	1.5%
Depreciation	2.8%	4.1%	3.1%	3.3%
Other Income (% of Net Revenue)	0.3%	0.4%	0.4%	0.5%

EBITDA Margin expansion driven by higher share of Consumer business and on-going impact of Ethanol Sales leading to hire purchases by OMC'S, leading to higher ENA Margins

• Saving in Finance cost due to lower outstanding debt and lower interest cost
• Higher EBITDA Margin coupled with lower Finance Cost drove profitability at PAT level

Company Overview

Presence Across the Value Chain

Well integrated operations aid in ensuring quality and cost control

Business Segments

Largely divided into Manufacturing and Consumer segments

Manufacturing Business (~57% of Revenue) Strong Backbone…

Bulk SpiritsFranchisee Bottling	By Products	Value Segment	Premium Segment
-------------------------------------	-------------	---------------	-----------------

• Recently, commenced Production of Sanitizers

Consumer Business (~43% of Revenue) High Value…

Manufacturing Business

1. Bulk Alcohol

Backbone of the 360o business model; Generating robust cashflows

• Globus is the largest grain based Extra Neutral Alcohol (ENA) manufacturer in India with a capacity of 160 Mn Litres
• Reputed IMFL players are major customers for Bulk Alcohol
• Presence in Rajasthan, Haryana, Bihar and West Bengal

ENA Revenue (INR Mn)

FY19 onwards capacity includes Bihar Plant 14 FY20 capacity was expanded to ~160 Mn BL

2. Franchisee Bottling

Strong relationships with pedigreed players ensures steady offtake

Bottling volume (Mn cases)

15

3. By-Products

Process efficiencies lead to zero discharge and incremental revenues

❑ Animal Feed Supplements (AFS)

• o Major by-product from distillation process is Animal Feed Supplements with Solubles & AFS
• o Used as food for the animal feed industry
• o High protein (min 45% ) and energy (~3500 K/cal)
• o Provides excellent animal health, performance, and food product quality

❑ CO2

• o Commercially available as high pressure cylinder gas, relatively low pressure refrigerated liquid, or as dry ice
• o Commonly used as a raw material for production of various chemicals; carbonation of soft drinks; freezing of food products such as poultry, meats, vegetables and fruit

Note: Major contribution is of AFS, followed by Co2

Consumer Business

Value Segment – GSL is One of the Largest IMIL Players

Product innovation and focus on brand building has enabled growth

Existing Product Portfolio

Value Segment Sale Volumes (Mn Cases)

Focus on Innovation through Investment in R&D

Premium Segment – UNIBEV - Unique Value Proposition

Asset-light | Focus on niche segments | Building blocks for a high margin brand play

Unibev has come out with disruptive & exclusive USP with value proposition

Crafted a range of premium and super premium whiskies blended with Upto12, 18 years old scotch & a 3 years old French blended grape brandy

For the first time, discerning consumers in India will get palate experience of Made in India whiskies which are blended with aged imported scotch from Scotland

Oakton

Premium whisky segment

Governor's Reserve

Semi-premium whisky segment

Segment is about 20m cases

L'Affaire Napoleon 3 years Brandy

Premium brandy segment Segment is about 0.5m cases

Financials

Annual | Profit & Loss Statement

Consolidated Financials

Particulars (INR Mn)	FY18	FY19	FY20	FY21
Gross Revenues	9,323.8	10,807.0	12,674.3	16,721.3
Less-Excise duty	771.4	947.9	986.1	4,413.6
Net Revenues from Operations	8,552.4	9,859.1	11,688.2	12,307.7
Other Income	53.2	70.9	37.4	65.6
Total Income	8,605.6	9,930.0	11,725.5	12,373.3
Total Expenditure	7,870.5	8,976.6	10,440.8	9,760.7
Consumption of Material	5,169.0	5,990.2	7,175.8	6,531.6
Employee Cost	229.4	277.3	342.8	384.2
Other Expenditure	2,472.1	2,709.1	2,922.2	2,844.8
EBITDA	735.0	953.3	1,284.8	2,612.6
Depreciation & Amortization	362.0	361.2	380.2	406.6
EBIT	373.0	592.2	904.6	2,206.0
Finance Cost	271.4	263.1	235.5	188.3
PBT	101.7	329.1	669.0	2,017.7
Tax Expense (Current, Deferred Tax)	45.2	91.9	172.0	609.5
PAT (From ordinary activities)	56.5	237.2	497.0	1,408.2
EPS	1.98	8.26	17.33	48.90

Annual | Key Ratios

Consolidated Financials

Key Ratios (% of Total Income)	FY18	FY19	FY20	FY21
EBITDA	8.5%	9.6%	11.0%	21.1%
PAT	0.7%	2.4%	4.2%	11.4%
Total Expenditure	91.5%	90.4%	89.0%	78.9%
Raw material	60.1%	60.3%	61.2%	52.8%
Employee Cost	2.7%	2.8%	2.9%	3.1%
Other Expenditure	28.7%	27.3%	24.9%	23.0%
Finance Cost	3.2%	2.6%	2.0%	1.5%
Depreciation	4.2%	3.6%	3.2%	3.3%
Other Income (% of Net Revenue)	0.6%	0.7%	0.3%	0.5%

Annual | Balance Sheet

Consolidated Financials

Liabilities (INR Mn)	FY19	FY20	FY21
Networth	3978.8	4,473.0	5,853.2
Minority Interest	-7.2	-9.0	-9.2
LT borrowings	1695.4	1,328.0	1,067.1
Provisions	17.2	27.8	30.1
Deferred tax liabilities	241.5	282.6	524.8
Other non-current liabilities	24.9	37.0	77.0
Total Non Current Liabilities	5950.6	6139.4	7542.9
ST borrowings	314.2	44.8	272.8
Trade payables	946.6	1,084.9	1,187.4
Provisions	16.5	6.9	67.7
Other financial liabilities	364.5	466.4	496.4
Current tax liabilities	10.2	53.6	31.4
Other current liabilities	89.6	197.0	321.5
Total Current Liabilities	1741.5	1853.5	2377.2
Total Liabilities	7692.1	7992.9	9920.2

Assets (INR Mn)	FY19	FY20	FY21
Fixed assets (incl. CWIP)	5854.2	5,978.5	6,268.5
Intangible assets underdevelopment	6.1	6.1	-
Financial assets	149.6	183.3	175.8
Income tax assets	15.3	0.3	0.3
Other non-current assets	150.5	61.1	437.9
Total Non Current Assets	6175.8	6229.3	6882.5

Total Current Assets	1516.3	1763.6	3037.6
Other current assets	151.7	134.5	505.9
Other financial assets	70.9	28.3	49.9
Cash & cash equivalents	25.1	199.9	581.3
Trade receivables	490.9	338.1	879.2
Inventories	777.8	1,062.8	1,021.3

Enhanced Net Cash Flow from Operations

The business mix and focus on costs have led to strong operating cash flow generation

…Driven by the Following Key Factors

• Growth in business and improved profitability
• Lower Finance costs due to paring of debt
• Lower cash outlay for taxes* 80IA deduction (on account of biomass-based power plant) and MAT Credit (available for next 2-3 years based on current estimates)

* This led to a lower effective tax rate of 18% (% of PBT) in FY21, and is likely to continue over the next 2-3 years

Key Financial Ratios

Consistent focus on reducing debt from business cashflow; improving return ratios

2% 6% 11% 24% 6% 9% 15% 29% FY18 FY19 FY20 FY21 RoE RoCE

Shareholding Pattern

Total outstanding equity shares as on June 30, 2021, stands at 28.8 Mn shares

Major Non-Promoter Shareholders % shareholding
Name	% Share
Templeton Strategic Emerging Markets Fund IV, LDC	2.08%

26

Disclaimer

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Globus Spirits Limited (the "Company"), 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. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained is subject to change without notice and past performance is not indicative of future results. 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 guaranteeing 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 worldwide, 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.

You acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely and completely responsible for forming your own view of the potential future growth and performance of the Company. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update, amend, modify or revise these forward-looking statements to reflect subsequent events or developments. 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 statement/s and projection/s made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statement/s and projection/s. The contents of this presentation have not been reviewed by any regulatory authority in any jurisdiction where such presentation has been made or distributed.

Let's Connect

Mr. Bhaskar Roy Globus Spirits Limited

Phone: +91 11 6642 4600

Email: broy@globusgroup.in

Ms. Pooja Sharma / Ms. Sheetal Keswani Stellar IR Advisors

Phone: +91 22 62398024

Email: pooja.sharma@stellar-ir.com / sheetal@stellar-ir.com