Earnings Presentation Q4 FY22

May 25, 2022

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Executive Summary

Consolidated

Consolidated Results - Q4 FY22

Pfaudle

*Excluding PPA and acquisition related adjustments (non-cash) related to PFI acquisition. FY21 Balance sheet is restated to account for PPA related adjustments. The purchase price was allocated to assets acquired and liabilities assumed based on the provisional fair values as the date of acquisition in accordance with Ind AS 103. During the current year, the Group completed PPA and realigned values of assets and liabilities acquired on acquisition. Backlog is net of POC. Margin and growth percentages are calculated on absolute figures. Q4 FY21 includes two months of PFI business.

$\sigma$

Consolidated Results - FY22

accordance with Ind AS 103. During the current year, the Group completed PPA and realigned values of assets and liabilities acquired on acquisition. Margin and growth percentages are calculated on absolute figures. FY21 includes two months of PFI business.

Consolidated Cash Flow Statement - FY22

Figures in $\overline{\ast}$ crore

Q Free cash flow generation of Rs 171 crore during FY22

Q Vatva acquisition partly funded through internal accruals

Consolidated Balance Sheet

Figures in $\overline{\epsilon}$ crore

Particulars	31.03.22	31.03.21*	Particulars		$31.03.22$ $31.03.21$ *
Shareholder's equity	527	406	Fixed Assets	560	524
Non-controlling interests	141	116	Goodwill & Intangibles	455	524
Debt	505	492	Receivables	356	310
Pension liabilities	373	454	Inventory	670	576
Trade payables	391	302	Cash and equivalents	291	243
Other liabilities (current & non-current)	791	648	Other assets (current & non-current)	396	241
Total Liabilities and Equity	2,728	2,418	Total Assets	2,728	2,418

□ Balanced capital allocation with net gearing of 0.3 times (from 0.4 times) as on March 31, 2022

Pension reduction by 18% to Rs 373 crore
$\Box$ Working capital in control with healthy collections and funding by customer advances
□ Credit Ratings reaffirmed at AA-/A1+ with Stable outlook (or high degree of safety) by both CRISIL Ratings and ICRA

*FY21 Balance sheet is restated to account for PPA related adjustments. The purchase price was allocated to assets acquired and liabilities assumed based on the provisional fair values as the date of acquisition in accordance with Ind AS 103. During the current year, the Group has completed the Purchase Price Allocation and realigned the values of assets and liabilities acquired on acquisition

Consolidated Profitability Metrices

EARNINGS PER SHARE (EPS) - $\sim 10$

RETURN METRICES

*Consolidated figures exclude PPA, and other acquisition related adjustments related to PFI acquisition in FY21 and FY22

FY19 and FY20 includes GMM India and Mavag. FY20 and FY21 ROE and RoCE are restated due to changes in Shareholder's equity (consolidated) EPS (basic) is calculated using net profit attributable to equity holders (excludes non-controlling interests)

To maintain consistency vs previous periods, following definitions are retained -RoE is calculated as net profit attributable to equity holders divided by total equity (excludes non-controlling interest) RoCE is calculated as EBIT divided by total equity + non-controlling interest + total debt

Integration Update

Corporate Brand

Branded Product Lines

MAVAG Filtration & Drying

CSR^* Activities -

EDLON Fluoropolymers

Business Functions

Our services branch ranges from the provision of parts and maintenance to complete process solution delivery, including conception, design and installation.

Our systems offering branch provides reaction systems, evaporation and distillation systems, acid recovery systems, filtration and drying systems, extraction systems and more.

GMM $P$ faudler $-$ Foundation

Our global and regional initiatives are dedicated to giving back to our planet and society.

*Corporate Social Responsibility

Project Apollo

Operational Excellence

Implement lean production model across manufacturing sites to increase throughput

Strategy alignment across global operational footprint

New furnace in Hyderabad and US under commissioning

Indian-built vessels delivered to Europe, Americas and China

Value-Sourcing

Leverage low-cost

capabilities to increase

market share and margins

across the group

Made in India components being regularly supplied to Europe

Cross-Selling

Capture customer wallet share through portfolio expansion & innovation

Interseal's ace5000™ to be launched in China
Test center for customer trials in Gujarat under development
Mavag opportunity pipeline and backlog remains strong

FY22 Order Intake exceeded Plan

Integration now Business-as-usual

13

Performance Analysis

Income Summary Statement - Q4 FY22

							REPORTED
(in $\bar{z}$ Crore)		Standalone Results		International Results Q4 FY22			Consolidated Results
Particulars	Q3 FY22	Q4 FY22	Business (Note i)	PPA/Adj. (Note ii)	Inter-Co Eliminations	Q4 FY22	Q3 FY22	%
		$\mathsf{A}$	B	$\mathsf{C}$	D	$A+B+C+D$
Revenue from Operations	209	229	526		$-56$	699	642	9%
Cost of materials consumed	110	133	234		$-61$	305	287
Changes in inventory (WIP & FG)	$-13$	$-24$	$-9$		18	$-16$	$-34$
Employee benefits expense	23	23	164		$\bigcirc$	187	178
Labour Charges	17	18	3		$\overline{O}$	21	21
Other expenses	34	40	94		$-4$	130	109
EBITDA	38	39	40	$\Omega$	$-8$	72	82	$-13%$
- margin %	18%	17%	8%			10%	13%
Other Income			3		$-3$
Finance cost	3	4	$-2$		$\overline{O}$	$\overline{2}$	6
Depreciation and amortisation	9	9	12		$\bigcirc$	27	28
expense
Profit/(loss) before tax	27	28	34	$-7$	$-11$	44	50	$-12%$
Taxes			6	15	$-3$	26	12
Profit/(loss) after tax	20	20	27	$-22$	$-8$	17	38	$-54%$

(i) International business includes the standalone performance of Mavag and Pfaudler International (PFI) on operational basis

(ii) PPA stands for Purchase Price Allocation. Other adjustments related to acquisition (non-cash)

(iii) Amounts are rounded off to crores and subject to casting. Margin and growth percentages are calculated on absolute figures

Segmental Overview - Q4 FY22

Thank You

Appendix

Standalone

Standalone Results - Q4 FY22

Backlog is net of POC. Margin and growth percentages are calculated on absolute figures.

Standalone Results - FY22

GMN Pfaud

Standalone Balance Sheet

Figures in ₹ crore

Particulars	31.03.22	31.03.21
Shareholder's equity	445	357
Debt	128	105
Trade payables	159	93
Other liabilities (current & non-current)	138	113
Total Liabilities and Equity	870	668

Particulars	31.03.22	31.03.21
Fixed Assets	213	147
Goodwill & Intangibles	25	32
Receivables	121	113
Inventory	231	113
Cash and equivalents	15	29
Other assets (current & non-current)	265	234
Total Assets	870	668

D Debt taken for partial funding on Vatva

□ Working capital remains adequate with healthy collections and funding by customer advances

I Inventory levels increased to support growth in heavy engineering business

Standalone Revenue (Legacy Segments)

Figures in ₹ crore

Particulars	FY22	FY21	FY20
Glass lined Equipment	499	401	355
Heavy Engineering	141	96	50
Proprietary Products	176	144	111
Total Revenue	815	641	516

International

International* Results - Q4 FY22

Pfaudler

$^$ Includes Mavag & PFI, Excluding PPA impact and inter-company eliminations. $^{*}$ Q4FY21 includes January '21 results of PFI (management $\;\;\;\;\;\;\;\mathbf{GMM}$ 25 reporting converted to IFRS and unaudited) for a like-to-like comparison. Backlog is net of POC. Margin and growth percentages are calculated on absolute figures

Figures in ₹ crore REVENUE EBITDA* $24\%$ 34% 1,881 180 1,512 134 $9.6%$ 8.9% PFI: PFI: $1,374$ 1,715 155 FY22 FY21 FY22 FY21 ORDER INTAKE ORDER BACKLOG $29\%$ 34% 1,425 2,192 1,696 1,067 PFI: $PFI$ : 1,152 1,899 927 1,488 FY22 FY21 FY22 FY21**

$\overline{\phantom{a}}$ GMM

Pfaudle

* Includes Mavag & PFI, Excluding PPA impact and inter-company eliminations. ** FY21 includes YTD Jan' 21 results of PFI (management 26 reporting converted to IFRS and unaudited) for a like-to-like comparison. Backlog is net of POC. Margin and growth percentages are calculated on absolute figures

**International* Results - FY22**

Other Updates

Shareholder Summary

DIVERSIFIED INVESTOR BASE - TOP 10 INSTITUTIONAL INVESTORS HOLD 13.0% SHARES

Particulars (in %)	Pre-acquisition (June 30, 2020)	Post acquisition (September 30, 2020)	Current (March 31, 2022)
Total Promoter Shareholding (A)	75.0	54.9	54.9
A. i. DBAG	50.4	32.7	32.7
A. ii. Patel Family	24.6	22.2	22.2
Total Public Shareholding (B)	25.0	45.1	45.1
B. i. Institutional Investors	3.0	14.3	18.0
Foreign Portfolio Investors	0.9	6.6	12.2
Mutual Funds	2.0	6.0	3.4
Alternate Investments Funds	O.O	O.1	1.7
Insurance Companies/ Banks/ Fis	0.1	1.6	0.7
B. ii. Non Institutions	22.0	30.8	27.1
Total Shareholding (A) + (B)	100	100	100

Income Summary Statement - FY22

							REPORTED
(in $\bar{z}$ Crore)	Standalone Results		International Results FY22		Inter-Co	Consolidated Results		Change
Particulars	FY21	FY22	Business (Note i)	(Note ii)	PPA/Adj. Eliminations	FY22	FY21	$\%$
		A	$\mathsf{B}$	$\mathsf{C}$	$\mathsf{D}$	$A+B+C+D$
Revenue from Operations	641	815	1,881		$-155$	2,541	1,001	154%
Cost of materials consumed	264	402	763		$-121$	1,045	386
Changes in inventory (WIP & FG)	10	$-41$	$-31$	46	$-5$	$-31$	61
Employee benefits expense	70	87	627		0	713	207
Labour Charges	42	59	14		$\bigcirc$	73	47
Other expenses	101	137	327		$-7$	457	160
EBITDA	154	172	180	$-46$	$-22$	284	139	105%
- margin %	24%	21%	10%			11%	14%
Other Income	8	4	6		$-3$		23
Finance cost		15	10		$\bigcirc$	25	10
Depreciation and amortisation expense	29	34	48	51	$\overline{O}$	133	50
Profit/(loss) before tax	126	127	129	$-97$	$-25$	133	102	31%
Exceptional items							34
Profit/(loss) before tax after exceptional	126	127	129	$-97$	$-25$	133	68	96%
Taxes	31	32	40	$-7$	-6	58	5
Profit/(loss) after tax	95	95	89	$-90$	$-19$	75	64	19%

(i) International business includes the standalone performance of Mavag and Pfaudler International (PFI) on operational basis (ii) PPA stands for Purchase Price Allocation. Other adjustments related to acquisition (non-cash)

(iii) Amounts are rounded off to crores and subject to casting. Margin and growth percentages are calculated on absolute figures 29

Working Capital Summary

CONSOLIDATED

Inventory Summary	31.03.22	31.03.21*
Inventory	670	530**
Customer advances	422	288
Net funding required for inventory	247	242
Backlog	1,932	1,483
Inventory days (net of advances)	36	39
Receivables Summary	31.03.22	31.03.21
Trade Receivables	356	310
Receivable days	51	50
Payables Summary	31.03.22	31.03.21*
Trade Payables	391	302
Payable days	56	48

STANDALONE		, 1901 00 11 1 2 01 0
Inventory Summary	31.03.22	31.03.21
Inventory	231	113
Customer advances	94	56
Net funding required for inventory	137	57
Backlog	524	416
Inventory days (net of advances)	61	32
Receivables Summary	31.03.22	31.03.21
Trade Receivables	121	113
Receivable days	54	64
Payables Summary	31.03.22	31.03.21
Trade Payables	159	93
Payable days	71	53

FY21 Balance sheet is restated to account for PPA related adjustments. The purchase price was allocated to assets acquired and liabilities assumed based on the provisional fair values as the date of acquisition in accordance with Ind AS 103. During the current year, the Group has completed the Purchase Price Allocation and realigned the values of assets and liabilities acquired on acquisition

**Adjusted for step-up inventory (PPA- related) of Rs 47 crores. Reported inventory is Rs 576 crores as on March 31, 2021 (as per restated numbers) To maintain consistency vs previous periods, following definitions are retained -

Inventory days (net of advances) is net funding required for inventory divided by LTM Sales (including proforma revenue for PFI) multiplied by 365 Receivable days is trade receivables divided by LTM Sales (including proforma revenue for PFI) multiplied by 365

$F_{\text{IMIPAS}}$ in $\overline{F}$ crore

30 Payable days is trade payables divided by divided by LTM Sales (including proforma revenue for PFI) multiplied by 365