Pidilite Industries Ltd. — Investor Presentation 2023

Jan 25, 2023

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25[th] January, 2023

The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14[th] floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock Code – 500331 Stock Code - PIDILITIND

Sub: Earnings Presentation

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

Dear Sir,

Please find attached the Earnings Presentation for the quarter ended 31[st] December, 2022.

Thanking You,

Yours faithfully, For Pidilite Industries Limited

MANISHA Digitally signed by MANISHA RAKESH RAKESH SHETTY Date: 2023.01.25 SHETTY 11:39:33 +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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Q3’ 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

• ➢ This quarter saw stability in key input prices and consumer pricing.

• ➢ Demand conditions in rural and semi urban area remain under strain.

• ➢ The recent significant input cost reductions as well as increased construction activity along with governmental initiatives in capex and rural sector augurs well for the future.

• ➢ As an organization we continue to invest in our brands, supply chain, digital infrastructure, innovation and distribution to deliver volume led profitable growth.

03

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FINANCIAL HIGHLIGHTS

PERFORMANCE OVERVIEW

• ➢ Nine months of the current financial witnessed robust revenue aided volume year growth by strong growth

• across categories and geographies.

• ➢ Growth was broad based across Consumer and Bazaar (‘C&B’) and Business to Business (‘B2B’) segments with both segments reporting double digit value growth as well as a healthy CAGR of over 15% over a three-year period.

• ➢ The current quarter registered a growth of 5% with C&B business growing at 7% (Vol: ~1%) over PY high base.

• ➢ While input prices have moderated significantly, gross margins have only improved marginally over the last quarter, largely as a result of high-priced inventory. EBITDA margins are in line with the previous quarters despite an increased investment in A&SP.

• ➢ Despite uncertain global economic conditions, currency devaluation and inflation, International Subsidiaries reported moderate sales growth whilst EBITDA remained under pressure due to higher input costs and impact of currency depreciation.

• ➢ Domestic C&B subsidiaries continue to deliver industry leading profit and growth.

03

EARNINGS SUMMARY

9M’ FY23

NET SALES EBITDA PBT PAT CONSOLIDATED Rs. 9,077 Cr Rs. 1,525 Cr Rs. 1,331 Cr Rs. 1,003 Cr YOY GROWTH 23.0% 5.5% 5.0% 5.3% STANDALONE Rs. 8,179 Cr Rs. 1,419 Cr Rs. 1,279 Cr Rs. 966 Cr YOY GROWTH 23.3% 2.5% 2.4% 2.9%

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

EARNINGS SUMMARY

Q3’ FY23

CONSOLIDATED

YOY GROWTH

STANDALONE YOY GROWTH

NET SALES EBITDA PBT PAT Rs. 2,987 Cr Rs. 496 Cr Rs. 419 Cr Rs. 308 Cr 5.1% - 9.7% - 13.9% - 14.3% Rs. 2,698 Cr Rs. 468 Cr Rs. 403 Cr Rs. 296 Cr 4.8% -11.9% -16.3% -17.4%

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

SEGMENT SUMMARY

(in INR Crores)

Sr. No	PARTICULARS	9M	9M	9M	Q3	Q3	Q3
		FY23	FY22	Growth	FY23	FY22	Growth
1	Segment Sales a) C&B b) B2B c) Others Total Less : Inter Segment Sales	6,584.5 1,682.8 81.5	5,284.8 1,419.2 44.9	24.6% 18.6% 81.5%	2,203.8 508.2 33.3	2,052.1 542.2 20.5	7.4% -6.3% 63.1%
		8,348.8 169.5	6,749.0 116.4	23.7% 45.6%	2,745.3 47.1	2,614.7 41.0	5.0% 14.8%
	Net Sales	8,179.3	6,632.6	23.3%	2,698.2	2,573.7	4.8%
2	Segment Results a) C&B b) B2B c) Others Total Segment Results Less : i ) Finance Costs ii) Other unallocable expenditure net of Unallocable income	1,541.0 161.2 5.0	1,460.4 147.2 -1.4	5.5% 9.6% 471.1%	518.9 40.6 3.9	550.5 50.4 -1.2	-5.7% -19.4% 435.0%
		1,707.2	1,606.2	6.3%	563.5	599.8	-6.1%
		21.6 406.5	22.0 335.4	-1.6% 21.2%	10.1 150.0	6.8 110.8	48.2% 35.3%
	PBT	1,279.1	1,248.8	2.4%	403.4	482.1	-16.3%

OVERSEAS SUBSIDIARIES PERFORMANCE 9M’ FY23

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(in INR Crores)
Asia
Sales
23%
189.2 233.3
Americas
Sales
185.0 198.2 7%
EBITDA
32.3 38.1 18%
EBITDA Middle East and Africa
13.0 1.2 Sales EBITDA
156. [189.7] 21% 5.1
-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 Q3’ FY23

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(in INR Crores)
Asia
Sales 6%
70.6 74.8
Americas
Sales
5%
58.4 61.1
EBITDA
18%
12.3
10.0
EBITDA
Middle East and Africa
0.8
Sales 19% EBITDA
-2.2
63.9
53.8 1.8
-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 9M & Q3’ FY23

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300 36% 287.3 22% 120 12% 19%
95.7
240 210.7 226.8 100 85.3
78.6
185.4
80
65.9
180
60
120
40
60
20
0 0
C&B B2B C&B B2B
89% 55.3 108% 79% 126%
60
33
40 29.3
23 16.8
20
1.8
9.3
13
0
1.3
3
-20
(21.0) -7
-40
-4.9
C&B B2B
C&B B2B
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 in 1959

Pioneer in Consumer & Specialty Chemicals

7 Regional offices

34 plants

35 co-makers in India

7500+ employees

Adhesives & sealants, construction chemicals, art & craft products & polymer emulsions

International

manufacturing

facilities in USA, Thailand,

Dubai, Brazil, Egypt, Bangladesh, Sri Lanka & Kenya

20 overseas subsidiaries

( 6 direct and 14 stepdown) 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

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

• 6,200+ SKUs of 900+ products

Domestic Revenue of for FY22 Rs. 7,461 Cr

• 34 plants, 35 Co-makers

• 4,898+ distributors

• 44 warehouses

• 7 regional offices & 4 RDCs

12 domestic subsidiaries (including 1 partnership

firm) and 6 associates

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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 HOLDING PATTERN- 31st December 2022

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14.90%
Promoters
Mutual Funds
11.08% FPIs
Others
4.08%
69.94%
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SHARE PRICE MOVEMENT

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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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