NOCIL Ltd — Investor Presentation 2020

Jan 30, 2020

30th January 2020

SEC/122B

The Secretary	The National Stock Exchange of India Ltd.
The Bombay Stock Exchange Limited	Exchange Plaza
"P.J. Towers"	Bandra Kurla Complex,
Dalal Street	Bandra (East)
Mumbai-400 001	Mumbai-400 051
Scrip Code: 500730	Symbol: NOCIL

Dear Sir,

Sub: Investor Presentation

Pursuant to Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, we enclose herewith Investors Presentation on the Financial Highlights for the quarter and nine months ended 31st December 2019.

The aforementioned Presentation has been uploaded on the Company's website viz., www.nocil.com.

We request you to take the above on your records and acknowledge receipt.

Thanking you,

Yours faithfully, For NOCIL Limited Amit K. Vyas AMIT KUNDAN VYAS Digitally signed by AMIT KUNDAN VYAS DN: c=IN, o=Personal, 2.5.4.20=83ce41194720ac59c832db4f4 c5bad300e6c12dee1d20c8a74e0e0fd4 bae8051, postalCode=400011, st=MAHARASHTRA, serialNumber=ce9572346503ab01604b dbd2fe672a29f88580111781df58beb97 779860e8331, cn=AMIT KUNDAN VYAS Date: 2020.01.30 18:08:58 +05'30'

Assistant Vice President (Legal) & Company Secretary

Encl.: as above

NOCIL LIMITED

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

Quarterly Performance

off-take in order to maintain wallet share

• Prolonged slowdown resulted into temporary oversupply scenario leading to price suppression
• Full impact of ADD in this quarter

• Lower capacity utilisation resulted into operating deleverage
• Price suppression to some extent was net off through internal efficiency

• Depressed market leading to Price Suppression
• Full ADD impact
• Operating leverage did not play out

Key Highlights

Industry Scenario:

• Volume de-growth seems to have bottomed out. Pick up in sales volume expected
• Price depression seems to be more of temporary nature, in the worst case for few months

Our Strategy:

• Focus on gaining Market share
• Focus on optimisation of resources
• Q4FY20 volumes expected to be highest in FY20
• Depending on the relationship coupled with higher volume off-take price aggression strategy will be selectively rolled out

Maintain Guidance of Marginal de-growth in volume for FY20 in the range of 0% to 5%

Rs. In Crores	Q3 FY20	Q2 FY20	Q1 FY20	Q-o-Q	9M FY20	9M FY19	Y-o-Y
Net Revenue from Operations	194	210	230	-7.4%	634	801	-20.9%
Raw Material	93	89	100		282	356
Value Addition *	102	121	129		352	445
Value Addition %	52.3%	57.7%	56.4%		55.6%	55.6%
Employee Expenses	19	19	20		57	50
Other Operating Expenses	47	54	54		155	164
Operating EBITDA	36	48	56	-25.5%	140	231	-39.6%
Operating EBITDA Margin	18.4%	22.8%	24.5%		22.1%	28.9%
Depreciation	8	8	7		23	17
Interest	0^	0^	0^		1	0
Other Income	1	2	2		6	8
Profit Before Tax	29	42	51		122	222
Tax	8	-13**	18		13	74
Net Profit	21	55	33		109	148
Net Profit Margin	10.6%	26.3%	14.2%		17.1%	18.5%

*Revenue (-) cost of raw materials consumed (-) cost of traded goods (-) change in inventories

** includes deferred tax credit of Rs. 24 crores on account of reduction in tax rate

^ less than 1 crore

Rs. In Crores	Q3 FY20	Q2 FY20	Q1 FY20	Q-o-Q	9M FY20	9M FY19	Y-o-Y
Net Revenue from Operations	194	210	230	-7.4%	634	801	-20.9%
Raw Material	93	89	100		282	356
Value Addition *	102	121	129		352	445
Value Addition %	52.3%	57.7%	56.4%		55.6%	55.6%
Employee Expenses	19	19	20		59	52
Other Operating Expenses	46	54	53		151	161
Operating EBITDA	37	48	57	-24.5%	142	233	-39.2%
Operating EBITDA Margin	18.8%	23.1%	24.6%		22.4%	29.1%
Depreciation	8	8	8		24	18
Interest	0^	0^	0^		1	0
Other Income	1	2	3		6	8
Profit Before Tax	29	42	51		122	222
Tax	8	-13**	18		14	74
Net Profit	21	55	33		109	149

*Revenue (-) cost of raw materials consumed (-) cost of traded goods (-) change in inventories

** includes deferred tax credit of Rs. 24 crores on account of reduction in tax rate

^ less than 1 crore

Business Overview

Company Overview

• Part of Arvind Mafatlal Group
• Expertise in Rubber Chemical Business over 4 decades
• Largest Rubber Chemicals Manufacturer in India
• Long Term Business Relationships with Tyre Majors (Both Domestic & International)
• Awarded Responsible Care Logo by Indian Chemical Council

Management Team

Mr. Hrishikesh . A. Mafatlal – Promoter & Chairman

• Executive Chairman and Promoter Director of NOCIL Ltd
• B.Com. (Hons.) & has attended the Advanced Management Programme at the Harvard Business School, USA

Mr. R. M. Gadgil - President - Marketing

• B Tech in Chemical Engineering from IIT Mumbai
• Associated with the Company in various marketing capacities for nearly 38 years

Dr. Chinmoy Nandi - Vice President (Research & Development)

• Post Graduate & Ph.D. in Science
• Associated with the company for nearly 35 years in various R&D capacities

Mr. S. R. Deo – Managing Director

• M. Tech. in Chemical Engineering from IIT Kanpur
• Associated with the company for nearly 40 years in various technical capacities

Mr. P. Srinivasan – Chief Financial Officer

• Chartered Accountant with over 31 years of experience
• Associated with the Company since 2005

Dr. Narendra Gangal – Vice President (QA, Analytical & Outsourced Research)

• Ph.D. in Analytical Chemistry with 27 years of experience
• Associated with the company since 2007

Mr. Rajendra Desai – Vice President (Operations, Corporate HR & Personnel)

• Chemical Engineer with Diploma in Management Studies
• Associated with the company for nearly 34 years

Glimpse of our Plants

Navi Mumbai Plant Dahej Plant

• Set up in 1976
• Located in Trans-Thane Creek industrial area at Navi Mumbai, Thane - Belapur's industrial zone designated for the chemical Industry, about 40 kms away from Mumbai
• State-of-the-art technology for the manufacture of the entire range of Rubber Chemicals for Tyre & other Rubber Products

• Commenced operations in March 2013
• Located about 45 kms from Bharuch, Gujarat
• Location has synergistic Chemicals & Petrochemicals industry and excellent connectivity with Dahej & Hazira Port
• Fully automated continuous process plant developed completely with in-house technology

Products & Product Forms 01

• Wide Range of Rubber Chemical Products
• Varied Product Forms

Sales, Marketing & Technical Service 02

• Market Responsive Approach
• Strong MTS Team to offer Technical Services

R & D and Quality Assurance 03

• Experienced, capable & innovative team of R & D scientists.
• Ultra Modern Laboratories & Pilot Plant Facilities
• Latest Analytical Instruments

ANTI-DEGRADANTS/ ANTI-OXIDANTS

▪ These are ingredients in rubber compounds which deter the ageing and inhibit degradation due to oxygen attack of rubber products, thereby enhancing service life

ACCELERATORS

• Increase the speed of vulcanization
• Permit vulcanization to proceed at lower temperature & with greater efficiency

OTHER APPLICATIONS

• Pre vulcanization inhibition, Post vulcanization stabilization, Latex based applications etc.
• Improving Thermal Stability of cross links in rubber products

ONE STOP SHOP With WIDE RANGE to suit MARKET REQUIREMENTS

R&D and Total Quality Management

Certifications

• ISO 9001:2008
• ISO 14001:2004
• BS OHSAS 18001:2007
• ISO/IEC 17025:2005
• ISO/TS16949:2009
• IATF
• NABL
• Responsible Care by Indian Chemical Council

13

Extended life, Automotive & Industrial products will increase rubber processing chemical loadings

High Performance Tyres Stringent Environmental compliance

Cost increase in China leading to Better level playing field

NOCIL has been awarded by ICC for "Excellence in Management of Environment" under the large chemical industry

Rising Income Levels Global Demand*

Increase in Motor vehicle ownership rates, especially in developing nations would need additional consumption of rubber processing chemicals

For Rubber processing chemicals continue to forecasted to grow around 4% - 5% for next 10 years

Latest IRSG forecast speaks of 2.5% - 2.8% growth over the next 2 years

Source : Rubber Statistical Bulletin, Jul - September 2019 edition *Annualised based on H1CY19 data

CAPEX Update

Non-Chinese Dependable Player

Non-Chinese Dependable & Quality Player with Committed Plans for future growth

Presence across the entire range of Rubber

Wide Range of Product

chemicals i.e. 22 product basket

Environment Friendly Processes

Continuous investments done to adopt various innovative environmental technologies for long-term sustainability

Product Testing & Validation

Approved & registered vendor with the Major Domestic & International Tyre Players offering Technical Support to customers for Rubber Products / Process Development

Pipeline of New Generation of Rubber Chemicals

Development of Niche products using innovative technologies & Green chemistry concepts and new generation environmentally sustainable processes for growth

Entry Barrier

Customers take from 6-18 months to give approval on plant specific basis & same is carried out for various locations globally

• * Revenue from operations is net of GST/Excise duty
• ** Operating PBT (PBT - Other Income)

^ IGAAP

Margin built-up over the years

*(Revenue (-) cost of raw materials consumed (-) cost of traded goods (-) change in inventories)/Revenue

For further information, please contact:

Company : Investor Relations Advisors :

NOCIL Ltd. CIN: L99999MH1961PLC012003

Mr. P. Srinivasan - CFO finance@nocil.com

Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285

Ms. Payal Dave / Ms. Neha Shroff payal.dave@sgapl.net / neha.shroff@sgapl.net +91 9819916314 / +91 7738073466

www.nocil.com

www.sgapl.net