Pidilite Industries Ltd. — Investor Presentation 2022

Nov 10, 2022

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10[th] November, 2022

The Secretary BSE Ltd. Corporate Relationship Dept., 14[th] floor, P. J. Tower, Dalal Street, Fort Mumbai - 400 001 Stock Code – 500331

The Secretary National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051 Stock Code - PIDILITIND

Sub: Earnings Presentation

-------------------------------

Dear Sir,

Please find attached the Earnings Presentation for the quarter ended 30[th] September, 2022.

Thanking You,

Yours faithfully, For Pidilite Industries Limited

MANISH A RAKESH SHETTY Digitally signed by MANISHA RAKESH SHETTY Date: 2022.11.10 11:03:16 +05'30'

Manisha Shetty Company Secretary

Encl: a/a

Regd. Office Regent Chambers, 7th Floor Jamnalal Bajaj Marg 208 Nariman Point Mumbai 400 021

Pidilite Industries Limited Corporate Office Ramkrishna Mandir Road Andheri - E, Mumbai 400059, India T + 91 22 2835 7000 2835 7952 / 2835 7365 F +91 22 2830 4482 www.pidilite.com ClN:L24100MH1969PLC014336

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Q2’ FY 23

Earnings Presentation

OUR BRANDS

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DISCLAIMER

This presentation may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially fro ~~m~~ the current views being expressed. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

03

MARKET OUTLOOK

➢ In the current quarter, the demand conditions remained soft with inflation impacting consumption

• ➢ Recent softening of commodity costs, good monsoon and increased construction activity augurs well for the future

• ➢ Going forward we remain cautiously optimistic on improving demand conditions

• ➢ We continue to invest in our brands, supply chain, digital infrastructure, and distribution to deliver consistent and volume led profitable growth.

03

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FINANCIAL HIGHLIGHTS

EARNINGS SUMMARY

H1’ FY23

CONSOLIDATED

YOY GROWTH

STANDALONE

YOY GROWTH

NET SALES EBITDA PBT PAT Rs. 6,090 Cr Rs. 1,029 Cr Rs. 912 Cr Rs. 695 Cr 34.1% 14.7% 16.7% 17.2% Rs. 5,481 Cr Rs. 951 Cr Rs. 876 Cr Rs. 670 Cr 35.0% 11.5% 14.2% 15.4%

• EBITDA is before non operating income. PBT is Profit before tax and Exceptional Items.

EARNINGS SUMMARY

Q2’ FY23

CONSOLIDATED

YOY GROWTH

NET SALES EBITDA PBT PAT Rs. 3,000 Cr Rs. 500 Cr Rs. 439 Cr Rs. 338 Cr 14.8% - 9.0% - 10.8% - 10.0%

STANDALONE

YOY GROWTH

Rs. 2,703 Cr Rs. 464 Cr Rs. 433 Cr Rs. 337 Cr 15.1% -12.3% -11.3% -9.8%

• EBITDA is before non operating income. PBT is Profit before tax and Exceptional Items.

PERFORMANCE OVERVIEW

• ➢ First half registered robust sales growth aided by strong volume growth across categories and geographies.

• ➢ Growth was broad based across C&B and B2B segments with both segments reporting double digit volume growth, enabled by distribution expansion, innovation, responsive supply chain and digital initiatives.

• ➢ The revenue growth in Q2 FY23 of 15% was largely led by pricing and mix; Urban market grew faster than Rural ~~on~~ .

• regi

• ➢ Margins continue to be impacted owing to raw material inflation, weaker currency and high-priced inventory. Mat Cost as a % to Net Sale is higher by 436 bps YOY and 74 bps sequentially.

• ➢ Control in costs below gross margin enabled to maintain EBITDA margin at the same level of previous quarters.

• ➢ International Subsidiaries witnessed good sales growth, but EBITDA remained under pressure due to higher input costs.

• ➢ Domestic subsidiaries maintained positive momentum with C&B subsidiaries continuing to deliver industry leading growth and margins whilst B2B subsidiaries reduced losses significantly. 03

03

SEGMENT SUMMARY

Sr. No	PARTICULARS	Quarter Ended	Quarter Ended	Quarter Ended	Half Year Ended	Half Year Ended	Half Year Ended
		Sep'22	**Sep'21 **	Growth	Sep'22	**Sep'21 **	Growth
1	Segment Sales a) Consumer & Bazaar Products (C&B) b) Business to Business (B2B) c) Others Total Less : Inter Segment Sales	2,188.7 546.8 22.4	1,917.4 460.0 14.6	14.2% 18.9% 53.5%	4,380.7 1,174.6 48.2	3,232.7 877.1 24.5	35.5% 33.9% 96.9%
		2,757.9 55.3	2,392.0 43.2	15.3% 27.8%	5,603.5 122.5	4,134.2 75.4	35.5% 62.3%
	Net Sales	2,702.7	2,348.7	15.1%	5,481.0	4,058.8	35.0%
2	Segment Results a) Consumer & Bazaar Products (C&B) b) Business to Business (B2B) c) Others Total Segment Results Less : i ) Finance Costs ii) Other unallocable expenditure net of Unallocable income	511.8 45.6 (0.3)	560.9 41.6 (0.8)	-8.8% 9.6% 57.7%	1,022.1 120.6 1.1	909.8 96.8 (0.2)	12.3% 24.6% 705.6%
		557.1	601.8	-7.4%	1,143.8	1,006.4	13.7%
		7.1 117.4	8.9 105.2	-19.9% 11.6%	11.5 256.6	15.2 224.6	-24.0% 14.2%
	Profit before tax	432.6	487.7	-11.3%	875.7	766.7	14.2%

OVERSEAS SUBSIDIARIES PERFORMANCE H1’ FY23

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(in INR Crores)
Asia
Sales
117.5 160.0 Gwth%: 36%
Americas
Sales
125.2 135.7 Gwth%: 8%
EBITDA
20.3 28.3 Gwth%: 40%
EBITDA Middle East and Africa
12.1 3.4 Gwth%: -72% Sales EBITDA
102.5 [125.7] Gwth%: 23% 3.2
-0.6
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• Amounts are like for like actual reported numbers excluding translations and other consolidation impacts

• Amounts in ‘ bold ‘ denotes CY

10

OVERSEAS SUBSIDIARIES PERFORMANCE Q2’ FY23

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(in INR Crores)
Asia
Sales
56.0 77.3
Gwth%: 38%
Americas
Sales
69.7 64.6 Gwth%: -7%
EBITDA
8.0 12.5 Gwth%: 56%
EBITDA
Gwth%: -115% Middle East and Africa
6.4
Sales EBITDA
-0.9 Gwth%: 20%
52.7 [63.4]
2.3
0.1
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• Amounts are like for like actual reported numbers excluding translations and other consolidation impacts

• Amounts in ‘ bold ‘ denotes CY

11

DOMESTIC SUBSIDIARIES PERFORMANCE H1’FY23

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200 191.6
125.4 Gwth%: 53% Gwth%: 24%
148.1
160 119.4
120
80
40
0
C&B B2B
H1 FY 22 H1 FY 23
60
Gwth%: 95%
Gwth%: 102%
36.5
40
18.7
20
0.4
0
-20
(16.1)
C&B B2B
H1 FY 22 H1 FY 23
NET SALES
EBITDA
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INR (Rs in Crore)
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EBITDA is before exception items. Figures are reported excluding other consolidation impacts.

DOMESTIC SUBSIDIARIES PERFORMANCE Q2’FY23

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INR (Rs in Crore)
120 Gwth%: 25%
81.9 102.6 Gwth%: 12%
100
80
64.9
58.2
60
40
20
0
C&B B2B
Q2 FY 22 Q2 FY 23
42
Gwth%: 40%
Gwth%: 91%
28 19.9
14.2
14
0
(0.8)
-14
(9.2)
C&B B2B
Q2 FY 22 Q2 FY 23
NET SALES
EBITDA
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EBITDA is before exception items. Figures are reported excluding other consolidation impacts.

A COMPANY AT GLANCE

Brand established Adhesives & sealants, in 1959 construction chemicals, Pioneer in art & craft products & Consumer & polymer emulsions

Specialty Chemicals

International

7 Regional offices

manufacturing

facilities in USA, Thailand, Dubai, Brazil, Egypt, Bangladesh, Sri Lanka & Kenya

34 plants

35 co-makers in India

20 overseas subsidiaries

( 6 direct and 14 step-

7500+ employees

down) and 1 Joint Venture

History of creating strong brands

Exporter of Pigments and

Pigment

emulsions to

emerging markets as well as Europe and North America

Among the most trusted brands in the country. Other big brands include M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Araldite, Araldite Karpenter and Araseal.

3 R&D centres in India.

1 in Singapore

1 in USA

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Rs 725 Cr revenue

from overseas subsidiaries in FY 22

INDUSTRY SEGMENT COMPOSITION

6.0% 7.2% Pigment & Industrial Resins, Preparations Construction chemicals (Project) etc. 0.7% Others 6.5% Industrial Adhesives 5.9% Art & Craft Materials etc. 53.4% 79.6% Adhesives & Consumer & Bazaar products 20.3% Sealants Construction & 19.7% Paint Chemicals Business to Business products 0.7% Others

Standalone Results - % of Total Sales based on FY 2021-22

5-Year Performance by Business Segments

Numbers represent Percentage of Total Sales

Consumer and Bazaar (C&B)

Business to Business (B2B) B2B includes Others also

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81%
81%
80% 80%
80%
79%
79%
77%
75%
2017-18 2018-19 2019-20 2020-21 2021-22
Consumer & Bazaar Products
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21%
21%
20% 20%
20%
19%
19%
17%
15%
2017-18 2018-19 2019-20 2020-21 2021-22
Business to Business and others
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DOMESTIC PRESENCE INDIA OPERATIONS

• 6,000+ SKUs of 850+ products

Domestic Revenue of for FY22 Rs. 7,461 Cr

• 34 plants, 35 Co-makers

• 4,800+ distributors

• 43 warehouses

• 7 regional offices & 4 RDCs

12 domestic subsidiaries (including 1 partnership

firm) and 4 associates

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SHARE HOLDING PATTERN- 30th September 2022

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Promoters
14.68%
Mutual Funds
FPIs
11.34%
Others
4.04%
69.94%
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MARKETING & ADVERTISING

Consistent and effective brand building activities across various categories a. Consumer Adhesives & Sealants b. Craftsmen Adhesives c. Waterproofing Chemicals d. Hobby & Craft Colours

Several of the brands are well-known in respective categories (Fevicol, Fevikwik, M-Seal, Dr Fixit, Fevicryl, etc.)

Award winning advertisements resulting in mass appeal of brands across all segments and geographies.

Significant relationship building activities with end users and influencers.

Extensive grass root contact with endusers to promote usage of products and brands.

CONNECTING DIGITALLY

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CELEBRATING OCCASSIONS- DIGITAL WAY

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SHARE PRICE MOVEMENT

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125
120
115
110
105
100
95
90
85
80
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Pidilite Sensex

Rebased to 100

CONSISTENT DIVIDEND PAYOUTS

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50%
40.6% 39.9% 40.1%
38.1%
40%
36.9%
30%
20%
10%
0%
FY18 FY19 FY20 FY21 FY22
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Note: The Net Profit considered for above calculation is excluding exceptional items

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CIN : L24100MH1969PLC014336

Investor Relations Investor.relations@pidilite.co.in

Manisha Shetty [Company Secretary]

Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Phone : +91 22 28357949 Fax : +91 22 28216007

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