"xu, NACL Industries Limited

Ref: NACL/SE/2021-22 November 10, 2021

Phiroze Jeejeebhoy Towers Exchange Plaza, 5thFloor Dalal Street, Plot No.C/1 G Block, Mumbai — 400001 Mumbai-400051. Stock Code: 524709 Symbol: NACLIND

1) BSE Limited 2) National Stock Exchange of India Ltd

Fort, Mumbai, Bandra —Kurla Complex, Bandra (E)

Dear Sir,

Sub: Investor Presentation — reg.

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing the investor presentation for the second quarter and half year ended September 30, 2021.

Kindly take the same into records.

Thanking you,

}

for NACL Industries Limited

Satish Kumar Subudhi

Company Secretary & Head-Legal

NACL Industries Limited

Investor Presentation | Q2 FY2022

FORWARD LOOKING STATEMENT

Investor Presentation

This presentation contains forward-looking statements, including, but not limited to, the statements and expectations contained in this presentation. Statements herein, other than statements of historical fact, regarding future events or prospects, are forwardlooking statements. The words ''may'', "will", "should", ''expect'', ''anticipate'', ''believe'', ''estimate'', ''plan'', "predict", ''intend" or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements.

NACL Industries Limited has based these forward-looking statements on its current views with respect to future events and financial performance. These views involve a number of risks and uncertainties, which could cause actual results to differ materially from those predicted in the forward-looking statements and from the past performance of NACL. Although NACL believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ, e.g. as the result of risks related to the Agriculture sector and Agriculture input industry in general or NACL in particular.

As a result, you should not rely on these forward-looking statements. NACL undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

CORPORATE IDENTITY

OPERATIONAL HIGHLIGHTS

RESULTS SUMMARY

PERFORMANCE TRACK RECORD

ANNEXURE

SHAREHOLDERS INFORMATION

CORPORATE IDENTITY

ABOUT NACL

NACL is an established agrochemical Company in India, founded in 1993. The Company started as an Active Ingredient manufacturer and has built a sizable business in Domestic Retail, B2B and Exports, with many of the customers being large MNCs with long-standing relationships.

The Company has also emerged as a strong player in the formulations business with over 50 products covering all major crops. In formulations, the Company manufactures products in all major categories such as Insecticides, Herbicides, Fungicides and Plant Growth Regulators

Mission

To be a trusted name in providing high quality products and solutions to the farming community
To be a trusted custom & contract manufacturing partner
To be a model company in meeting the expectations of all stakeholders

• Concern

Values

Commitment
Quality
Integrity

QUICK FACTS

Technicals Insecticides Fungicides Herbicides • Profenofos • Lambda-Cyhalothrin • Imidacloprid • Bifenthrin • Thiomethoxam • Myclobutanil • Propiconazole • Tricyclazole • Thifluzamide • Pretilachlor • Bispyribac Sodium • Metribuzin • Clodinafop-Propargyl • Quizalofop ethyl

Formulations

Insecticides			Fungicides	Herbicides
•ProfexSuper	•Ennova	•Nagarjuna	•Mass	•Eraze	•N-Double
•Profex	•Monocrown	Index	•Nagarjuna	•ErazePlus	Mix
•Cannon	•Force	•Nagarjuna	Rizostar	•ErazeStrong	•Rhino
•Fury	•Fenny	Result	•Subtle	•Eraze-N	•Senior
•Nagarjuna	•Trust	•Combi Plus	•Slogan	•Globus	•Sirius
Mida	•Cairo	•Sivic		•Globus SG	•Smash
•Nagarjuna4G	•Dxtar	•Mass Plus		•Geomon	•Surya
•Quick 50% SP	•DxtarFS	•Zen		•Imax	•Twofour
•Pymet	•Status	•Zeb		•Nagarjuna	•Nagarjuna
•Warrior Plus	•Pestlock	•Font		Cubit	Point

Warrior

	•Spice
--	------------	--

•	Eraze	•	N-Double
•	ErazePlus		Mix
•	ErazeStrong	•	Rhino
•	Eraze-N	•	Senior
•	Globus	•	Sirius
•	Globus SG	•	Smash
•	Geomon	•	Surya
•	Imax	•	Twofour
•	Nagarjuna	•	Nagarjuna
	Cubit		Point
•	Nagastra	•	Cambium

• Narilon

Plant Growth Regulators

Atonik
Gallant EG
Gallant Gold

Branded Products Portfolio of NACL includes Insecticides, Herbicides, Fungicides and Plant Growth Regulators

PRODUCT LAUNCH DURING Q2

PEST LOCK

Pest Lock is combination of two active ingredients Pyriproxyfen 5% and Difenthiuran 25% in SE formulation.

Pest Lock is recommended against sucking complex (Aphids, Thrips,Jassids and Whitefly) in Cotton.

Very effective on all the stages of whitefly – eggs, nymphs and adults.
Breaks the life cycle of the pests, thus provides longer duration control
Safe for beneficial insects and can be used as one of effective tools in IPM
Effective tool in IRM No cross resistance among two molecules, effective against the pest population resistant to other molecules

PYMET

It is a new generation systemic insecticide recommended for the control of Brown Plant Hopper in Paddy.

Pymet is having unique mode of action. It blocks the Stylet of insect mouth parts preventing the insect from feeding
It paralyses the insect hind legs resulting in insect dropping from the plant
Egg laying capacity of the insect will be reduced resulting in controlled insect population

OPERATIONAL HIGHLIGHTS

➢ Exports business grew by 73% & 63% over the corresponding quarter & half-year of last year respectively. Good order books for key products from MNCs, encouraging campaigns for contract manufacturing products, improved formulation and trading business have contributed to the positive growth. The outlook for Q-3 looks positive with good order book for technicals and formulations
➢ Domestic retail witnessed a growth of 9% over the corresponding quarter of last year, despite very challenging market conditions as a result of seasonal impact on the overall farming activities
➢ Domestic institutional grew by 18% & 34% over the corresponding quarter and half-year of last year respectively
➢ In line with the ongoing thrust on strengthening the product pipeline, the company has planned to add three new products to its portfolio in H2 FY 21-22
➢ Upon receipt of GLP certification, the NACL R&D Centre has initiated Five batch analysis and Physical chemical analysis of Technical. Development work for new Active Ingredients and Intermediate is taken up
➢ Construction activities at Dahej in Gujarat for greenfield project is progressing as per schedule
➢ Srikakulam Plant has been awarded Industry Champion Award by the Government of Andhra Pradesh. The Plant has recorded highest production levels in Q2 and meeting the market demands
➢ Srikakulam Unit is awaiting for Environment Clearance for its proposed expansion from 10000MT to 25000MT per annum
➢ Ethakota Plant has started commercial production of 2 new formulations
➢ CARE has re-affirmed the existing rating for the enhanced Long Term & Short Term Bank Facilities. For Long Term CARE A; Stable and for Short Term - CARE A1
➢ Company declared Second Interim Dividend of ₹ 0.15/- per equity share (representing 15%) on the equity share of ₹ 1/- each fully paid up for the financial year 2021-22
➢ Company has achieved financial closure of Rs 135 Crores Debt funds for the ongoing new Greenfield Project at Dahej during the Q2 of FY '22

RESULT SUMMARY – Q2FY22

Revenue Breakup (₹ in lakhs)

Investor Presentation

Q2FY22 Product Category-wise (%) 57% 15% 24% 4% Insecticides Herbicides Fungicides Plant Growth Regulators Geographical Revenue Split (₹ lakhs) Formulation Technical 32% 19% 49% 28,834 15,451 Domestic Export 67% 15% 6% 4% 7% America Europe Australia Africa Asia

Q2FY21 Product Category-wise (%) 60% 13% 22% 5% Insecticides Herbicides Fungicides Plant Growth Regulators Geographical Revenue Split (₹ lakhs) 22% 30% 48% Formulation Technical 25,491 8,926 Domestic Export Exports Exports 58% 16% 7% 20% America Europe Australia Africa Asia

RESULT SUMMARY – H1FY22

Revenue Breakup (₹ in lakhs)

REVENUE SPLIT – H1FY22

H1FY21

							(₹in lakhs)
Particulars	Q2FY22	Q2FY21	Q1FY22	Y-o-Y (%)	H1FY22	H1FY21	Y-o-Y (%)
Revenue from operations	44,285	34,417	32,468	29%	76,753	59,619	29%
Other income	547	258	315	112%	862	580	49%
Total Income	44,832	34,675	32,783	29%	77,615	60,199	29%
Expenses:
(a) Cost of materials consumed	30,800	24,262	26,424	27%	57,224	42,475	35%
(b) Purchase of stock-in-trade	2,725	1,373	1,450	98%	4,175	2,366	76%
(c) Changes in inventories of finished goods, work-in-progress and stock-intrade	(1,111)	(1,335)	(4,156)	-17%	(5,267)	(2,826)	86%
(d) Employee benefits expense	2,407	2,236	2,327	8%	4,734	4,406	7%
(e) Finance costs	703	686	638	2%	1,341	1,365	-2%
(f) Depreciation and amortisation expense	617	652	611	-5%	1,228	1,307	-6%
(g) Other expenses	5,282	3,880	3,584	36%	8,866	7,381	20%
Total Expenses	41,423	31,754	30,878	30%	72,301	56,474	28%
Profit before tax	3,409	2,921	1,905	17%	5,314	3,725	43%
Tax expense:
(a) Current tax	898	1,065	526	-16%	1,424	1,375	4%
(b) Deferred tax (net)	(13)	(13)	(52)	0%	(65)	(55)	18%
Total Tax Expense	885	1,052	474	-16%	1,359	1,320	3%
Profit for the period	2,524	1,869	1,431	35%	3,955	2,405	64%
Earnings Per Share:
(a) Basic (in ₹)	1.28	0.97	0.72		2.00	1.25
(b) Diluted (in ₹)	1.27	0.97	0.72		1.99	1.25

(₹ in lakhs)

Particulars	Q2FY22	Q2FY21	Q1FY22	Y-o-Y (%)	H1FY22	H1FY21	Y-o-Y (%)
Revenue from operations	44,285	34,417	32,468	29%	76,753	59,619	29%
Other income	483	259	267	86%	750	581	29%
Total Income	44,768	34,676	32,735	29%	77,503	60,200	29%
Expenses:
(a) Cost of materials consumed	30,800	24,262	26,424	27%	57,224	42,475	35%
(b) Purchase of stock-in-trade	2,725	1,373	1,450	98%	4,175	2,366	76%
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade	(1,111)	(1,335)	(4156)	-17%	(5,267)	(2,826)	86%
(d) Employee benefits expense	2,412	2,244	2,335	7%	4,747	4,422	7%
(e) Finance costs	625	686	580	-9%	1,205	1,365	-12%
(f) Depreciation and amortisation expense	617	652	611	-5%	1,228	1,307	-6%
(g) Other expenses	5,277	3,874	3,574	36%	8,851	7,367	20%
Total Expenses	41,345	31,756	30,818	30%	72,163	56,476	28%
Profit before share of profit of associate	3,423	2,920	1,917	17%	5,340	3,724	43%
Share of profit / (loss) from Associate	(100)	3	(18)	-3433%	(118)	26	-554%
Profit before tax	3,323	2,923	1,899	14%	5,222	3,750	39%
Tax expense:
(a) Current tax	898	1,065	526	-16%	1,424	1,375	4%
(b) Deferred tax (net)	(13)	(13)	(52)	0%	(65)	(55)	18%
Total Tax Expense	885	1,052	474	-16%	1,359	1,320	3%
Profit for the period	2,438	1,871	1,425	30%	3,863	2,430	59%
Earnings Per Share:
(a) Basic (in ₹)	1.23	0.97	0.72		1.95	1.26
(b) Diluted (in ₹)	1.23	0.97	0.72		1.95	1.26

PERFORMANCE TRACK RECORD

HISTORIC QUARTERLY TREND (1/2)

(₹ in lakhs)

10.55%

9.62%

19,099 30,172 23,868 27,663 25,202 34,417 26,475 33,043 32,468 44,285 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Revenue from Operations 1,388 2,383 1,792 2,044 2,138 4,259 2,888 3,521 3,154 4,729 7.00% 7.80% 7.45% 7.36% 8.38% 12.28% 10.78% 10.45% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 EBITDA and EBITDA Margin EBITDA EBITDA Margin

HISTORIC QUARTERLY TREND (2/2)

(₹ in lakhs)

FINANCIAL PERFORMANCE (2/2)

154 134 131 79 82 FY17 FY18 FY19 FY20 FY21 Working Capital Days

Investor Presentation

CREDIT RATING

Investor Presentation

TIMELINE (1/2)

TIMELINE (2/2)

BOARD OF DIRECTORS

Mrs. K Lakshmi Raju Chairperson & Non-Executive Director

Mr. M Pavan Kumar Managing Director & CEO

Mr. Sudhakar Kudva Independent Director

Mr. N Vijayaraghavan Non-Executive Director

Mr. Raghavender Mateti Independent Director

Mr. Atul Churiwal Investor Nominee Director

Mr. Rajesh Kumar Agarwal Investor Nominee Director

Mr. Ramkrishna Mudholkar Independent Director

Mr. N Sambasiva Rao Independent Director

Ms. Veni Mocherla Independent Director

KEY MANAGEMENT TEAM

Mr. Amit Tandon Vice President - Domestic Sales & Marketing

Mr. Amit Taparia Senior VP – SCM, Procurement, IT and Registrations & RA

Mr. C. Varada Rajulu Senior VP –Operations (Srikakulam and Ethakota Plants)

Mr. G. Jagannadha Rao Executive VP – Exports Sales & Marketing

Mr. Harish Chandra Bijlwan VP – Operations & Technology

Mr. M Pavan Kumar Managing Director & CEO

Mr. R.K.S Prasad Executive VP – Finance & CFO

Mr. Satish Kumar Subudhi CS & Head – Legal

Mr. S. Mani Prasad Head – Human Potential Development

Mr. Srinivasa Rao Bitra Senior General Manager & Head Plant Operations (Formulations Unit)

10,000 metric tons per annum

and 12,500 retail outlets across India under the Company's direct to retail approach

NACL – A UNIQUE INVESTMENT CASE

01

Capable R&D team with state-ofthe-art, GLP accredited facility, to develop differentiated products and cost efficient manufacturing processes.

RESEARCH & DEVELOPMENT

GOVERNANCE & LEADERSHIP

Accomplished Board Members and seasoned professional leadership with decades of industry experience; long standing record of enlightened governance and mature business processes.

CONSISTENT GROWTH

Sustained improvement across all key performance parameters over many quarters.

DISTRIBUTION NETWORK

Extensive market reach through a large base of retailers and distributors.

PRODUCT PORTFOLIO

Robust, diversified and expanding product portfolio, spanning insecticides, herbicides, fungicides and plant growth regulators

ENDURING BUSINESS RELATIONS

Long standing and trusted relationships with multi-national and domestic Companies.

STRONG VALUE CHAIN

Well developed presence in R&D, intermediate, technical grade materials and formulations manufacturing, exports and brand marketing; intensive farmer and customer engagement.

BRAND EQUITY

Distinct consumer preference based on brand competitiveness with accent on quality and service.

CERTIFICATES

ICC (Indian Chemical Council) certified to use Responsible Care Logo, for a period of Three Years.

Responsible Care certification is increasingly recognized as a differentiator in the Chemical Industry for doing business in Domestic and International market.

The R&D facility of NACL Industries Limited, situated at Nandigaon village, outskirts of Hyderabad (Telangana), India has been accredited for "Good Laboratory Practice" issued by NGCMA, Department of Science and Technology, Government of India.

The OECD Principles of Good Laboratory Practice (GLP) ensure the generation of high quality, reliable and reproducible test data related to non-clinical health and environmental safety studies. Registration authorities of all OECD countries (which includes USA, CANADA, Australia, Japan, UK, Germany and many more countries) will now accept the test data generated out of the aforesaid R&D facility centre of NACL. These data are also required for registration of crop protection chemicals in various other Countries.

CERTIFICATES

ISO 45001:2018 ISO 14001:2015 ISO 9001:2015

ISO ACCREDITATIONS

NABL ACCREDITATIONS

R&D Facility Ethakota Unit Srikakulam Unit DSIR

AWARDS AND ACCOLADES

Best Company of the Year 2017

NACL has been awarded "Best Company of the Year 2017" presented by International Brand Consulting Corporation (IBCC), USA.

Greentech Award

NACL has bagged the "Greentech Environment Silver Award" for the year 2018 from New Delhi-based Greentech Foundation, for its best efforts towards environment protection and conservation.

Suraksha Puraskar

NACL's Srikakulam Unit has bagged the prestigious "Suraksha Puraskar" Award for the year 2017 from the National Safety Council of India, for its best

safety practices.

Certificate of Appreciation

NACL's Ethakota Unit has bagged the prestigious SAFETY AWARD for the year 2018,2019 & 2020 from the National Safety Council of India, for its best safety practices.

Best Management Award

NACL's manufacturing units situated at Srikakulam and Ethakota, Andhra Pradesh have been conferred with "Best Management Award" by the Government of Andhra Pradesh for the years 2015 & 2018.

Water Management Award

Srikakulam won CII National Award in Water management for the year 2019.

Industry Champion Award 2021

NACL's Srikakulam Unit bagged prestigious "Andhra Pradesh Industry Champion Award 2021" from the Government of Andhra Pradesh.

KEY EXTERNAL DRIVERS OF THE BUSINESS

Indian Agrochemical Market

The agrochemicals market in India is expected to register 8% CAGR to reach US$ 3.7 billion by FY22 and US$ 4.7 billion by FY25. With the government propagating the development of the agricultural sector and with the recent proposals under the 'Aatmanirbhar Bharat' package pertinent for the upliftment of the agrarian economy focused on boosting agriculture and its allied, the demand for agrochemicals seems promising.

Food Security

According to an estimate, India would require more than 450 million tonnes of food grains to feed 1.65 billion people by 2050 which will be a very difficult task. Similar challenges the world would face in terms of stepping up food production to meet the growing needs of the world population.

Exports

In crop protection chemicals, India is a net exporter. With considerable technical manufacturing capabilities coming up in the Country, India is emerging as a leading destination for sourcing agrochemical active ingredients. The country's exports have increased on account of competitive manufacturing, growing domestic demand, capacity augmentation, product and process development capabilities and technical trained manpower.

Government Initiative

The matured agro chemical sector has an excellent opportunity to grow in the domestic market and gain considerable share in the global market. The industry is adding sizeable capacities in active ingredients / technicals and formulations manufacturing and also integrating backward into intermediates with increased investment in R&D and sustainable practices. The domestic industry is emerging as a course to reckon within agrochemcial world.

PRODUCTION CAPACITY

BROWNFIELD PROJECT

NACL Industries Limited, Srikakulam, Andhra Pradesh

NACL is in process of increasing the existing Plant capacity of 10,000 MT/Annum to 25,000 MT/Annum.

25,000 MT/ Annum in phases

NACL Spec-Chem Limited, Dahej, Gujarat CAPACITY

NACL Spec-Chem Limited, a wholly owned subsidiary of NACL is setting up a Greenfield Project of Agrochemicals Active Ingredients & Formulation.

GREENFIELD PROJECTS

NACL Multichem Pvt. Ltd, Ranasthalam Mandal, Srikakulam CAPACITY

NACL Multichem Private Limited, a wholly owned subsidiary of NACL is planning to setup a greenfield Project for manufacturing of Agrochemicals and Synthetic Organic Chemicals.