GRP Limited — Investor Presentation 2020

Feb 19, 2020

From Corporate Office: 510, A Wing, Kohinoor City C-l Kirol Road, Off L.B.S. Marg, Kurla CW) Mumbai - 400 070, India T: +91 22 6708 2600 / 2500 F: +91 22 6708 2599 IMPACT POSITIVE

GRP/M /6% /2019-20 19.02.2020

To	To
BSE Limited	National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,	Exchange Plaza, Bandra Kurla Complex,
Dalal Street,	Bandra (E),
Mumbai - 400 001.	Mumbai - 400 051.
Scrip code : 509152	GRPLTDSymbol— Series: EQ:

Dear Sir / Madam,

Sub: Investor Presentation

Pursuant to regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith Investor Presentation.

The aforesaid presentation has been uploaded on the Company's website viz., www.grpweb.com

You are requested to take the above on record and oblige.

Thanking you,

Yours faithfully, For GRP Ltd.

Abhijeet Sawant Company Secretary

Encl: a/a

GRP Ltd, CIN No.: £25191GJ1974PLC002555 Registered Office: Plot No. 8, G.L.D.C., Ankleshwar - 393 002, Dist. Bharuch, Gujarat, india T: +91 2646 250471 / 251204 / 650433 F: +91 2646 251622 www.grpweb.com

GRP Limited

Investor Presentation February 2020

Click Here for GRP LTD's Corporate Video

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

Performance Highlights

Performance Highlights for Q3FY20*

• Revenue has been flattish as compared to previous quarter due to subdued demand by the tyre companies amid the ongoing auto slowdown
• Profitability has been slightly lower due to higher raw material cost coupled with lower capacity utilization in Q3FY20 as compared to previous periods

Overall markets are challenging due to lower economic activity globally and virgin prices being stagnant

Due to the Auto Sector slowdown, the volumes and price realizations has remain muted

Drop in operating margins due to continued material import restrictions in a SKU and rise in logistic cost on account of global sulphur tax and inability to pass the same to customer

Operational Highlights

RM prices expected to increase due to reversal of restriction on alternate use of End Of Life Tyres

Focused opportunities in the tyre sector would positively impact the profitability of the business

Automation remains a key focus area towards improving margins

Segment Wise Performance Trend*

*Data On Standalone Basis

Segmental Financial Highlights*

Particulars (in Rs. Mn)*	Reclaim Rubber		Non-Reclaim Rubber
	Q3FY20	Q2FY20	Q3FY20	Q2FY20
Revenue	870.3	848.9	35.3	40.6
Raw Material	435.3	432.1	13.6	13.3
Other Expenses	390.7	379.0	22.4	19.1
EBIDTA	44.3	37.8	-0.7	8.2
EBIDTA Margin	5.1%	4.5%	-2.0%	20.2%

✓ Non-Reclaim rubber businesses will help company diversify its offerings among various industries reducing our overall dependence on the tyre sector

✓ Although Non-Reclaim business performance was subdued in Q3 due to global uncertainties in auto and allied sectors leading to lower demand and lower capacity utilization, we hope to get back on track from FY21 onwards as business sentiment improves

Standalone Q3FY20 Profit & Loss Statement

Profit & Loss (Rs. Mn)	Q3 FY20	Q3 FY19	9M FY20	9M FY19
Revenue (Net of Taxes)	905.7	976.5	2692.1	2,650.9
Cost of Goods Sold	448.9	465.8	1350.7	1260.0
Gross Profit	456.7	510.7	1341.4	1391.0
Gross Profit Margin	50.4%	52.3%	49.8%	52.5%
Employee Cost	154.8	160.1	446.4	439.8
Other Expenses	258.4	256.4	755.5	739.0
EBIDTA	43.5	94.2	139.5	212.1
EBITDA Margin	4.8%	9.6%	5.2%	8.0%
Other Income	2.2	2.0	6.8	5.5
Depreciation	35.3	32.8	101.3	96.7
Finance Cost	20.3	14.4	44.1	46.0
PBT	-9.9	49.0	0.9	74.9
Tax	-7.0	14.0	-42.9	14.4
PAT	-2.9	35.0	43.8	60.5
PAT Margin	-0.3%	3.6%	1.6%	2.3%
Cash Profit	32.4	67.8	145.1	157.3

Consolidated Q3FY20 Profit & Loss Statement

Profit & Loss (Rs. Mn)	Q3 FY20	Q3 FY19	9M FY20	9M FY19
Revenue (Net of Taxes)	905.8	977.3	2,692.5	2,655.2
Cost of Goods Sold	445.1	461.8	1337.5	1253.1
Gross Profit	460.7	515.5	1355.0	1402.0
Gross Profit Margin	50.9%	52.7%	50.3%	52.8%
Employee Cost	155.6	161.1	449.0	442.5
Other Expenses	259.9	258.2	761.6	745.9
EBIDTA	45.1	96.1	144.4	213.7
EBITDA Margin	5.0%	9.8%	5.4%	8.0%
Other Income	1.0	0.8	3.3	2.5
Depreciation	35.7	33.7	102.5	99.4
Finance Cost	20.4	14.7	44.5	46.8
Profit Before Share of Profit/(Loss) of JV's	-10.0	48.6	0.7	69.9
Share of Profit/(Loss) of JV's	0.0	-1.6	0.0	-4.3
PBT	-10.0	47.0	0.7	65.7
Tax	-7.0	14.0	-42.7	14.4
PAT	-3.0	33.1	43.4	51.3
PAT Margin	-0.3%	3.4%	1.6%	1.9%
Cash Profit	32.7	66.7	145.9	150.7

Introduction

… HUGE OPPORTUNITY

…presenting a HUGE OPPORTUNITY

Huge tyre graveyards that can be seen from Space

GRP uses end-of-life tyres to recycle and manufacture

Recover, Recycle, Reuse' is GRP's raison d'etre as well as mantra for creating a clean planet

• GRP is one of the leading producers of reclaim rubber
• It recycles end- of-life tyres, automotive inner tubes, automobile profiles and moulded rubber products to produce consistent quality reclaim rubber
• The rubber produced emits 95% Lower greenhouse gas v/s virgin polymers

…to Reduce, Reuse & Recycle

15

Our Business

Believing in possibility of better tomorrow…

8 Manufacturing Units with 72,700 tons/year capacity

18% share in Indian Market & 50% of India's Export in reclaimed rubber

Supplies to 7 out of top 10 global tyre companies

Export presence in 60+ Countries across 300+ customers

~1.2 Mn End-of-Life tyres saved from reaching landfills Every Year

IATF, ISO and BS OHSAS REACH Certified for EU Zone

OUR VALUES

… since Four Decade & Counting

…serving the needs of Global Mobility Industry

…supported by self designed Manufacturing Facilities

• Continuous Development of New Products
• Expansion in New Product Categories

• Automation of Processes
• Environment friendly – Zero Discharge

Product Process Application

• Developing New Application across diversified Industries
• Products designed based on Customer application needs

New Products Margin Improvement Customer Relationship

…across Business Verticals

…all Major Tyre and Non Tyre Customer Relationships

…Global Partnerships for Business Growth

Tyre Retreading

Joint venture with an Italian company since 2015 for building a tyre retreading franchise business in India

Contract Manufacturing with an American company since 2000 to manufacture products for absorbing vibration and sound

Polymer Composite

Contract Manufacturing with an American company since 2017 to manufacture polymer composite products in India

…Distinguished Board of Directors

Dr. Peter Philip

Chairman & Non-Executive Director

No. of Years of Experience : More than 40 years in General Management

Qualification : Graduate with Honours from St. Stephen's College (Delhi) and Alumnus of Stanford University, USA and Selwyn College, Cambridge, UK. Also a director in The Malayala Manoram Co Ltd & Commercial Broadcasts Ltd.

Rajendra Gandhi

Managing Director

No. of Years of Experience : More than 39 years in General Management

Qualification : graduate engineer from the Indian Institute of Technology, Mumbai. Also a director in Steelcast Ltd.

Harsh Gandhi

Joint Managing Director

No. of Years of Experience : 15 years in various Managerial positions

Qualification : OPM program from Harvard Business School USA & holds a Bachelor of Science in Management Purdue University USA

Rajeev Pandia

Independent Director

No. of Years of Experience : More than 39 years and been influential in Strategic Planning, Project Evaluation & Management, Technology Transfer

Qualification : Bachelor in Technology (Ch.Eng.) IIT, Mumbai, & has obtained his Masters in Science from Stanford University, USA. Also a director in Excel Industries Ltd & The Supreme Industries Ltd.

…Distinguished Board of Directors

Mahesh Gandhi

Non-Executive Director

No. of Years of Experience : More than 30 years in General Management

Qualification : He is a Graduate and an accomplished industrialist and the Chairman of the Industrial Development & Investment Co. Pvt Ltd

Alpana Parida

Independent Director

No. of Years of Experience : 30 year Marketing career, spanning USA and India;

Qualification : Graduate from IIM (Ahmedabad) and has a Bachelor's degree in Economics from St. Stephen's College, Delhi University. Also a director in Cosmo Films Ltd & Primesec Investments Ltd

Saurabh Shah

Independent Director

No. of Years of Experience : More than 20 years of experience as advisor in the fields of public equity investments, private equity, capital markets and Merger & Acquisition in India

Qualification : MBA from the Stern School of Business at New York University. Also a director in Citicorp Finance (India ) Ltd.

Nayna Gandhi

Non-Executive Director

No. of Years of Experience : More than 39 years and also director in Grip Polymers Ltd., (wholly owned subsidiary of GRP Ltd.) since November, 1993

Qualification : Diploma holder in Home Science

…with Experienced Management Team

Ganesh GhangurdeChief Compliance Officer•	Hemant KaulPresident Marketing &	RajenDoshiPresident & COO•MBA Georgia State,MS, IIT Mumbai	Kush GiramkarBusiness Head IndustrialPolymers & Head	ShilpaMehtaChief Financial Officer	SanjeebLahriHead HR &Administration
Chartered Accountant(ICAI) & CompanySecretary (ICSI)•Associated with GRP'ssenior ManagementCadre for more than 25years•Experience coversFinance & Accounts,Legal & Statutory,Compliances, Projects,,Rights & Public Issues,IT & SAPImplementations	CEO of Marangoni GRP•MBA, Leeds UniversityBusiness School, UK•At GRP since 2012 postspending 19 years intyre sector in India &Europe with Apollotyres and Birla tyres·Handling MGPLbusiness in India ;oversee Sales andMarketing & BusinessDevelopment forReclaim Rubber.	•Experienced inexecuting businesstransformations, M&Aand ChangeManagement acrossManufacturing, Serviceand Technologycompanies.•Worked across NorthAmerica, Europe andAsia in B2B and B2Cspace for companieslike GE, Honeywell,Coke, Citigroup, Legal& General (UK) andMahindra (India).	Procurement•MBA from IndoGerman Chamber ofCommerce, Graduatemechanical engineerfrom Govt. College ofEngineering, Pune•More than 22 years ofrich experience in thediverse fields ofmanufacturing sectorsuch as MaterialsManagement, ProjectManagement,Operations, R & D andNew BusinessDevelopment.	•Chartered Accountant(ICAI)•Overall 20+ years'experience and 15years in seniormanagement cadre•Work experienceincludes Accounts &Finance, Company law,Direct & Indirecttaxation, SAPimplementation &operations, Audit	•Post Graduate Diplomain Industrial Relations& PersonnelManagement fromUniversity of Burdwan,•More than 20 years ofprofessionalexperience in thediverse fields of TalentAcquisition, Staffing,Employee/IndustrialRelations, Productivity& Analysis, Learning &Development.•More than 19 years ofexperience with TATAGroup (Domestic &International)

Awards & Accolades – Testimony to our raison d'etre

At GRP, we are committed to transitioning from a 'recycled material company ' to a 'Sustainable Raw Material Company'. Therefore, embracing the certifications, partnerships required for achieving that status. PLUS embracing the UN's Sustainability Development Goals.

CSR – Impact Positive Initiatives

• Our CSR vision "to contribute towards social and economic development of the communities where we operate in. And while doing the same, we want to build a sustainable way of life for all sections of society".
• GRP believes in doing business the right way and ensuring that we reach out to underserved communities in the way we do business.
• GRP believes in focus beyond business interests and addressing the "quality of life" challenges that underprivileged communities face, and working towards making a meaningful difference to them

• Balwadis/Mobile Vans for Elementary Education
• Toy-bank to strengthen development through play in rural areas
• Merit based scholarship to support University Education
• Strengthen/Support existing institutes engaged in providing primary, secondary & higher level Education

EDUCATION SUSTAINABLE LIVELIHOOD HEALTHCARE WOMEN EMPOWERMENT

• Supporting initiatives around Yoga, meditation, other selfhelp
• Awareness programs for clean living/housing facilities (5S, etc.)
• Awareness programs on hygiene, safe water
• Encouraging plantation of trees through self-help groups of women

• Primary health care centres
• Mobile health care projects
• Preventive health through awareness programs

• Gram Pari in rural areas
• Girl child education up to university level
• Introduction of Water wheel for women to roll it from a distance

▪ GRP has built a strong association with institutes like such as: Tata Institute of Social Science, Pravara Medical Trust, Ankleshwar Rotary Welfare Trust, K C Mahindra Education Trust, Nanhi Kali Foundation

Business Verticals

Reclaim Rubber - Industry Leading Technology

1 ST Company in India to design, fabricate and install an entire plant & machinery for manufacture of reclaim rubber from complete indigenous components

Strong focus on innovation and R & D with DSIR approved lab, 1 st company in India to develop reclaims like EPDM & High Tensile

1 st company in reclaim rubbersector in India to become SAP ERP enabled

ISO certified company following strict quality control norm ensuring right material supply to its customers

Recycles 1 out of every 10 truck tyres & 1 out of every 8 tubes produced in India

Largest exporter of reclaim rubber from India to more than 60 countries around the world. Caters to 7 out of Top 10 global tyre companies

VALUE PROPOSITION

ECONOMIC

• Cost-saving compared with virgin rubber
• Reduced Energy Consumption

ENVIRONMENTAL

▪ Alternative to hazardous landfills ▪ Substitutes natural rubber &

crude based synthetic rubbers saving natural resources

PROCESSING

• Faster Mixing Cycle
• Improved extrusion rate
• Retention of good ageing properties
• Reduced splicing defects
• Controlled die swell

Reclaim Rubber – Cost Effective Alternative

Tyre Industry - Largest Consumer of Rubber

Industrial Polymer – Valuable Engineering Plastic

Custom Die Forms – Diverse Product Portfolio

Converts end-of-life tyres to design products used for civil & agricultural applications

Custom Die Forms are meant to absorb vibrations in heavy equipment and for insulation against sound

GRP – C-DF has produces these products in collaboration with leading North America Companies

Ensures reuse of end-of-life tyres with minimal energy needs

PRODUCTS

• Link Mats

• Door Mats

• • Industrial Mats
  • Dock Bumpers

Retreading - Marangoni Joint Venture

Portfolio of Products = Ringtread + Unitread + Classico

Entry into Retrading Markets of India with a Unique Technology, RINGTREAD – The Spliceless Retread

Ringtread Delivers: More mileage, Better grip, More reliable and eventually lower cost per KM (CPKM) savings to fleets

Marangoni S.P.A, World's Leading Tyre Retreading Company with a legacy of 70+ years

+

GRP Ltd, India's largest and world's leading rubber recycling company

=

The JV will aim to leverage the strengths of the two partners:

Marangoni as a retreading technology specialist

GRP's understanding of Indian Markets, Strong Supply Chain along with the reach to the End Customers

MARKET OPPORTUNITY

• Radial tyres at present account for 40-45% of Tyre Industry, expected to reach 75%+ by 2020
• Radialisation is estimated to double in the next 4-5 years, thus offering a big opportunity for tyre retreaders in the country
• India's retreading market is estimated at $ 700 mn with a CAGR of 7-8% with organized sector accounting for 50 %

With Radialization there is a great opportunity for organized players in the retreading industry in CV segment as it reduces per/km cost

…Retreading across Segments

No Waste: No material wastage

High Efficiency: More efficiency due to less handling and lower process time

Less Space: Less space required for same capacity due to efficient equipment & layout

ABOUT RINGTREAD

• Ringtread Concept: Tyres are circular in structure and rotate when they work, therefore the new tread must be perfectly circular in order to integrate harmoniously with the casings and recreate a perfect unit

• Ringtread

  • The only precured tread with the profile of original tyre
  • The ring has no joints and fits perfectly to the casing without tension or deformation
  • It guarantees reduced processing times and less waste, and performance levels are equivalent / exceeds those of a new tyre

• More Reliability: No risk of downtime due to the exclusive ring system

• More Life: Less tread wear also on highly abrasive surfaces

• More Grip: The best traction even in poor road condition

• More Savings: Very low rolling resistance leading to reduced fuel consumption

New Business Initiative - Polymer Composite Products

ABOUT Polymer Composite Products

• GRP is the exclusive manufacturer to a US based company for supply of composite products
• The composite products are manufactured from 100% recycled rubber and plastics
• The product is environmentally friendly, strong and durable
• The products are well suited for variety of application in sectors such as aviation, military, logistics, construction, oil & gas, marine and agriculture.

Products benefits & features

	Composite	Wood
IMPREVIOUSTOFLUIDS	✓	
EXCELLENT GRIP	✓	
UVRESISTANT	✓	
COSTEFFECTIVE	✓	
DURABLE,LONG-LASTING,LIGHTWEIGHT	✓	
WILLNOTROT,CRACK,ORSPLINTER	✓	

Growth Drivers

We have built Sustainable Business

Usage of Reclaimed Rubber on a Growth Path

Global Reclaimed Rubber Demand

Global Reclaimed Rubber market is expected to reach USD 6.32 billion by 2025

With strategic shift towards increasing Reclaimed Rubber

To Reduce, Reuse and Recycle the use of fossil fuels and strategic shift towards Reclaimed Rubber. By 2050 companies envisages higher use of Recycled Rubber

By major tyre manufacturing companies

" In the Rubber Group, the use of recycled materials is assuming an increasingly important role. Production waste generated in physical/chemical processes is used as reclaim and adhesive mixtures as recycled products. "

In the year under review, the percentage of recycled products of the total raw materials used in tire production was 3%. Our goal is to increase this share to 10% by 2025.

Reclaimed rubber is also used at 2.5% to replace virgin rubber for compounds

Break-Up of Recycled Raw Materials by Type - FY17

Historical Financials

Profit & Loss (Rs. in Mn.)	FY19	FY18	FY17	FY16
Revenue*	3,574	2,998	3,038	3,150
Cost of Goods Sold	1,707	1,373	1,387	1,488
Employee Cost	586	525	535	493
Other Expenses	1,027	911	855	881
EBIDTA	254	189	261	288
Other Income	4	7	27	4
Depreciation	133	139	143	142
Finance Cost	46	44	38	45
Profit before share of Profit / Loss of JV	78	13	107	105
Share of Profit / (Loss) of JV	(6)	(5)	(0)	-
PBT	72	8	107	105
Tax	19	15	38	26
PAT	53	(8)	69	79

Consolidated Balance Sheet

Liabilities (Rs. Mn)	Sep-19	Mar-19
Equity Share Capital	13.3	13.3
Other Equity	1,307.8	1,284.8
Equity attributable to owners of the	1,321.1	1,298.1
Company
Non-Controlling Interests	0.0	0.0
Total Equity	1,321.1	1,298.1
Non-Current Liabilities	205.5	249.2
Financial Liabilities
(i)Borrowings	17.6	28.9
(ii)Other Financial liabilities	12.3	1.1
Provisions	4.6	5.4
Deferred Tax Liabilities (Net)	171.0	213.8
Current Liabilities	1,016.3	920.5
Financial Liabilities
(i)Borrowings	699.6	593.0
(ii)Trade Payables	144.3	217.0
(iii)Other Financial Liabilities	45.1	38.2
Other Current Liabilities	122.9	69.1
Provisions	4.5	0.3
Current tax liabilities (Net)	0.0	2.7
Total Equity & Liabilities	2,542.9	2,467.8

Assets (Rs. Mn)	Sep-19	Mar-19
Non-Current Assets	1,296.9	1,289.0
Property, Plant and Equipment	1,107.0	1,207.4
Capital work in progress	19.7	9.7
Right to use	107.6	0.0
Investment Property	10.8	11.0
Other Intangible assets	1.8	2.1
Intangible assets under development	1.2	1.2
Financial Assets
(i)Investments	5.9	6.1
(ii)Others	0.0	0.0
Other Non-Current Assets	42.9	51.5
Current Assets	1,246.0	1,178.8
Inventories	381.9	348.1
Financial Assets
(i)Trade receivables	698.1	657.3
(ii)Cash and cash equivalents	9.5	44.0
(iii)Bank balances other than mentioned	2.1	2.1
(iv)Other Financial assets	5.4	14.8
Current Tax Assets (Net)	1.4	0.0
Other Current Assets	147.6	112.4
Total Assets	2,542.9	2,467.8

CIN: L25191GJ1974PLC002555

Mr. Ganesh Ghangurde Chief Compliance Officer ganesh.ghangurde@grpweb.com

www.grpweb.com

Company : Investor Relations Advisors :

CIN: U74140MH2010PTC204285

Mr. Sagar Shroff / Mr. Shrenik Shah sagar.shroff@sgapl.net / shrenik.shah@sgapl.net +91 98205 19303 / +91 99664764465

www.sgapl.net