Rushil Decor Limited — Investor Presentation 2021

Nov 8, 2021

RDL/063/2021-22 Date: 08.11.2021

To, National Stock Exchange of India Ltd. Exchange Plaza, Sandra - Kurla Complex, Sandra (E), Mumbai - 400051 NSE EQUITY SYMBOL: RUSHIL

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001 BSE SCRIPT CODE: 533470

ISIN: INE573K01017

Sub: Submission of Q2 F.Y. 2021-22 Presentation.

Dear Sir/ Madam,

We are enclosing herewith a copy of the 02 F.Y. 2021-22 Presentation regarding the financial performance of the company and other highlights for the period ended on 30th September, 2021.

Please take the same in your records and do the needful.

Thanking you

Yours Faithfully,

For, Rushil o/;J,r Limited Hoel� .,�

Hasmukh K. Modi Company Secretary

Encl: as above

OFF SINDHU BHAVAN ROAD, SHILAJ, AHMEDABAD-380058, GUJARAT, INDIA.

REGO. OFFICE: S. NO. 125, NEAR KALYANPURA PATIA, VILLAGE ITLA, GANDHINAGAR-MANSA ROAD, TA. KALOL, DIST. GANDHINAGAR-382845, GUJARAT, INDIA. I GIN: L25209GJ1993PLC019532

PH: +91-79-61400400 I FAX: +91-79-61400401 I EMAIL: INFO@RUSHIL.COM I WWW.RUSHIL.COM

Investor Presentation Q2 & H1 FY22

This presentation has been prepared by Rushil Décor Limited (the "Company") solely for information purposes and does 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 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.

Financial Highlights

Management Comment

Commenting on the results, Shri Krupeshbhai G. Thakkar, Chairman, Rushil Décor Limited said: "In the quarter ended September 2021, we reported a 80.16% YoY growth in revenue, with EBITDA growing 67.83% to Rs. 21.90 crores with a PAT of Rs. 7.68 crores. As for half year, we recorded a revenue of Rs. 262.31 crores. This is mainly due to substantial increase in sales volumes, better realizations and additional sales from the new facility.

As per our anticipation, we see an increase in demand at the new Vishakhapatnam facility for MDF Boards. This gives us the strength and motivation that the days of struggle are behind us and this facility is the starting point to reach our ultimate goal. Along with this, there is a shift in consumer preference as well and nowadays younger generations are opting for products easy on their pockets as well as continually changing with their trendy lifestyles and choices.

Our team has been the most important asset and our members have shown great responsibility and a sense of belonging by keeping each other motivated in recent challenging times. I would like to take this opportunity to thank each member of the Rushil Decor family. I would also like to thank our Clients, Creditors, Banks, Financial Institutions, and all other Stakeholders. Their faith & support in us has made it easier for us to strive and excel."

Financial Highlights – Quarterly

Sales Volume

Segmental Revenue (Rs. Crs)*

Financial Highlights – Quarterly

Rs. Crore	Q2 FY22*	Q2 FY21*	Y-o-Y (%)	Q1 FY22*
Total Income	171.32	95.09	80.16%	90.99
Raw Materials	93.39	48.46		43.40
Employee Cost	10.30	7.55		9.59
Other Expenses	45.73	26.04		36.50
Total Expenditure	149.42	82.04		89.49
EBITDA	21.90	13.05	67.83%	1.51
EBIDTA Margin (%)	12.78%	13.72%	(94 bps)	1.65%
Other Income	0.20	0.26		0.18
Depreciation	6.02	2.19		5.90
Interest	5.76	3.07		5.88
Exceptional Item (Gain) / Loss	0.00	0.00		0.00
Profit Before Tax	10.31	8.05		(10.09)
Tax	2.63	1.23		(2.50)
Profit After Tax	7.68	6.82	12.70%	(7.58)
Other Comprehensive Income	(0.06)	0.09		(0.06)
Net Profit	7.63	6.91	10.38%	(7.64)
Net Profit Margin %	4.45%	7.26%	(281 bps)	(8.40%)
Basic EPS in Rs.	3.86	4.57	(15.54%)	(3.81)

• Increase in Income by 80.16% Y-o-Y mainly due to higher volumes and better realizations
• EBITDA Margin slightly lower due to higher raw material costs
• Interest cost slightly higher on account of inventory built-up due to maintenance shutdown of plant
• Depreciation is higher Y-o-Y due to commencement of new plant in Andhra Pradesh

*Company came out with Rights Issue in Sept'20 to raise Rs. 24.89 cr by issuing 50 lakh shares

Financial Highlights – Half Yearly

Rs. Crore	H1 FY22*	H1 FY21*	Y-o-Y (%)
Total Income	262.31	144.16	81.95%
Raw Materials	136.78	75.56
Employee Cost	19.89	12.82
Other Expenses	82.23	41.39
Total Expenditure	238.90	129.77
EBITDA	23.41	14.40	62.60%
EBIDTA Margin (%)	8.92%	9.99%	(107 bps)
Other Income	0.38	0.65
Depreciation	11.92	4.36
Interest	11.64	6.34
Exceptional Item (Gain) / Loss	0.00	0.00
Profit Before Tax	0.23	4.35
Tax	0.13	1.15
Profit After Tax	0.10	3.20	(96.83%)
Other Comprehensive Income	(0.12)	0.18
Net Profit	(0.02)	3.38	(100.52%)
Net Profit Margin %	(0.01%)	2.34%	(235 bps)
Basic EPS in Rs.	0.05	2.14	(97.66%)

▪ Half-year numbers have been impacted due to Q1 FY22 performance which was affected by COVID

▪ Increase in Income by 81.95% Y-o-Y mainly due to substantial increase in volumes, incremental realizations and additional sales from new facility

*Company came out with Rights Issue in Sept'20 to raise Rs. 24.89 cr by issuing 50 lakh shares

Balance Sheet as on 30th Sept'21

Rs. Crore	As on 30thSept 2021	As on 31stMar 2021	Rs. Crore	As on 30thSept 2021	As on 31stMar 2021
Equity	264.02*	264.15	Non-current Assets	600.27	615.92
Equity Share Capital	19.89	19.73	Property, Plant and Equipment	582.84	587.18
Other Equity	244.13	244.41	Capital WIP	2.83	1.04
Non-Current Liabilities	335.20	343.49	Other Intangible Assets	0.01	0.03
Long Term Borrowings	287.09	295.21	Financial Assets
			Investments	0.01	0.01
Other Financial Liabilities	8.97	9.59	Trade Receivables	2.37	2.37
Provisions	2.78	2.38	Loans	0.10	0.08
Deferred Tax Liabilities (Net)	28.38	28.30	Other Financial Assets	6.65	6.60
Other Non-Current Liabilities	7.98	8.01	Other Non-Current Assets	5.45	18.60
Current Liabilities	256.28	200.79	Current Assets	255.23	192.51
Short Term Borrowings	114.11	83.46	Inventories	133.06	84.27
Trade Payables	115.50	102.56	Financial Assets
Other Financial Liabilities	1.15	1.14	Trade Receivables	73.26	57.54
			Cash & Cash Equivalent	1.40	1.56
Other Current Liabilities	7.99	2.84	Bank Balance other than Cash	5.46	10.07
Provisions	17.54	10.79	Loans	0.00	0.00
Current Tax Liability (Net)	0.00	0.00	Other Current Assets	42.04	39.07
Total Equity & Liabilities	855.49	808.43	Total Assets	855.49	808.43

*Company came out with Rights Issue in Sept'20 to raise Rs. 24.89 cr by issuing 50 lakh shares

During this quarter 2,74,210 partly paid up equity shares were converted into fully paid up shares – Company has not utilised said proceeds till end of quarter ended 30th September 2021

Company Overview

One of the leading player in manufacturing Decorative Laminate Sheets and Medium Density Fibre Boards (MDF) in India

One of the
Largestplayer in Laminates
segment

Focussed on 3

segments, MDF + LAMINATES + PVC Industry growth areas

4 Generationsin Business of Design Engineering

India's 3rd largest manufacturer of MDF boards

28 years of experience in Industry

Manufactures Decorative (single sided) as well as Industrial (double sided) Laminates with wide range of designs, colors and finishing in 3 manufacturing plants of Laminates located at Gujarat with Laminate capacity of 34.92 lakh sheets p.a.

"Vir Laminate" and "Vir MDF" well recognised and respected brands in Industry

Manufacturing thin and thick MDF Boards and Pre-Lam MDF Boards with thickness ranging from 2mm to 30mm at its plant in Chikmagalur, Karnataka with capacity of 300 CBM per day or 90,000 CBM p.a. & 2,40,000 CBM p.a. capacity at new plant in Andhra Pradesh covering thin and thick MDF Boards with thickness from 2mm to 30mm

**~ 120**

Vir Studdios across India

Global Footprint across 42 countries

More than 1000 designs in Laminated Sheet

Employee Strength: 600+

28 years of Growth & Experience

Strong & Experienced Management Team

Shri Krupeshbhai G. Thakkar – Chairman

• Experience in industry of laminated sheets and allied items
• Conferred with several accolades which include "Rajiv Gandhi Shiromani Award" and "Indira Gandhi Sadbhavana Award" in 2007 for his achievement in his field of work and contribution to the Nation
• Promoter of Company and appointed as Chairman w.e.f. 13th August 2021

Shri Rushil Krupeshbhai Thakkar – Director

• Associated with Company since last 8 years
• Completed Bachelor of Commerce from Gujarat University
• Online certificate course in MBA Essential from "The London School of Economics and Political Science"
• Appointed as Director w.e.f. 13th August 2021

Shri Vipul S. Vora – Chief Financial Officer

• Over 38 years of experience in field of finance & accounts
• Associated with Company since last 15 years
• Commerce Graduate, hold degree as Chartered Accountant from ICAI, holds DISA Course from ICAI

Shri Keyur M. Gajjar – Chief Executive Officer

• Associated with Company since last 16 years
• Holds degree of Bachelor of Engineering and Masters In Business Administration

Shri Hasmukh K. Modi – Company Secretary

• Associated with Company since last 14 years
• Completed Bachelor of Commerce, hold degree of Company Secretary from ICSI in year 2003
• Completed ICWAI in 2011

Key Strengths

Key Strength - Strategic Manufacturing Advantage

Manufacturing Unit

World-class infrastructure modelled on International Technical Plants

▪ BIS certification and Eco-mark certification for MDF manufacturing

Green-label certification from Singapore Environmental Council for laminates manufacturing process

Ratings & Recognition

Business Overview

Product Portfolio

APPLICATIONS :

1mm Master Series | Compact | Ext-Lam | Digital Layer | Unicolor | Sync Series | H2 Series | Mar Resistance Grade | Post Forming | Primelam (0.8mm) | High Gloss | Door | Lab Grade | FR Grade Chalk/ Marker Grade | Sleek

AVAILABLE SIZE :

8ft X 4ft (2440mm X 1220mm) | 9ft X 4.25ft (2800mm X 1300mm) | 10ft X 4.25ft (3050mm X 1300mm)

Laminates MDF Boards PVC

Great alternative to solid wood, particle board and plywood

APPLICATIONS :

Commercial, residential projects along with other institutional projects

AVAILABLE SIZE :

8ft X 4ft (2440mm X 1220mm)

• All international sizes are available

AVAILABLE THICKNESS :

All thicknesses from 2mm to 30mm

APPLICATIONS :

Partitioning, Panelling, False Ceiling, Furniture, Modular Furniture, Kitchens, Exhibitions and Display Products, Pre-laminated Stationary Articles, Automotive, Construction, Consumer Goods, etc

FEATURES :

Smooth Surface, Gluing and Laminations, Easy Installation, Environment Friendly, Best for Sandwich Construction, Nailable and Screwable, Sawing and Cutting, Timeless Warranty, Splinter-Free Impact-Resistant, Anti-Fungal, Weather and Ageing Resistant

AVAILABLE SIZE* :

8ft X 4ft (2440mm X 1220mm)

*Custom sizes available

Product Portfolio – MDF Boards

India's third largest manufacturer of MDF

Products Our Brands 156.74 172.52 156.46 167.07 155.92 2017 2018 2019 2020 2021 MDF Sales (in Crs)

Manufacturing

Units

Areas: India

Network

• 1 (based in Karnataka, India)
• New unit added in Andhra Pradesh
• State of art CNC machines that make MDF with homogeneity and less wastage

Marketing

Capacity

1,100 CBM/day (after

Utilization

82% (FY21)

recent addition of 800 CBM/day in March'21)

(excluding new capacity)

Range 4 Ft. X 8 Ft. MDF Boards with thickness range from 2 mm to 30 mm, both in Interior & Exterior grades

100+ Distributors 2 Consignment stockists 1,000+ Dealers 6 Branches 50+ OEMs

(including 5 of Flooring)

VIR Studdio – Creating Brand Awareness

• Unique marketing platform across Country displays entire product range at one location
• Live practical end use demonstration in very practical and effective manner - helping customers to visualize various permutations and combinations of entire product range
• Signature showrooms/display centers –'Vir laminates' as well as 'Vir Boards' range of products all under one roof
• As of July 2021, Company has 120+ showrooms

Branding through VIR Studdio Branding through Advertisements

Source link:https://www.youtube.com/watch?v=eF2xsGMcfy4

Our Product Proposition – Design led Value Engineering

	Laminates	MDF Boards	PVC
Value Proposition	Design Leaders	Quality Experts	Value Engineering	Customer
Price-point	▪Competitively priced products fordomestic and export markets	▪Competitively priced productsfor domestic markets (SouthIndia –logistics advantage)	▪Quality extruded products fordomestic and export markets	Vantage
Product Excellence	▪ISO 9001:2008; ISO 14001:2004;BSOHSAS 18001:2007 qualitycertification for managementsystems of all laminate plants byISOQAR.▪Certificate of compliance by UKcertification and inspection Ltd	▪Certified by Bureau of IndianStandards (BIS)	▪Eco-friendly▪Versatility & ease of use▪LEED certification led carboncredits	AffordableUser-friendly
Durability	▪Used for both interior and exteriorapplications and heavy-dutyindustrial applications	▪MDF boards are manufacturedusing German technology andmachines	▪Durable (8-10 years)	Best-in-class
Cutting-edge range	▪1000+ designs & 50+ textures &finishes in HPL segment alone.▪Constant innovation▪Strong product development andMerchandising team	▪Current capability of MDFboards thickness range -7.5mm to 30 mm▪Commissioned new plant atAndhra Pradesh: Capability ofproducing entire range ofthickness of MDF Board from 2mm to 30 mm		QualityAestheticAppeal

Our Manufacturing Facilities

Laminates - Gujarat

• Unit RDL, 608, GIDC Mansa, Dist. Gandhi Nagar, Gujarat
• Unit MRPL, Dholakuva Patia, Gandhinagar-Mansa Road, Mansa, Dist. Gandhinagar
• Unit RHPL, Survey No. 125, Nr. Kalyanpura Patia, Gandhinagar-Mansa Road, village Itla, Tal. Kalol

Production – 34.92 lakh sheets per annum Utilization - 78%

Manufacturing Facilities

Unit – RDL, Plot No. 58, 59 & 60p, Amble Industrial Estate Village, Amble Tal. & Dis. Chikmagalur, Karnataka

Production & Capacity Utilization – • MDF – 90,000 CBM per annum Utilization – 82%

• PVC – 12,460 CBM per annum Utilization – 14%

New Manufacturing Plant - 2 nd MDF Unit

• Greenfield project for manufacturing thin + thick MDF Boards at Vishakhapatnam, Andhra Pradesh having installed capacity of 800 CBM per day or 2,40,000 CBM per annum – 50% expected utilisation by FY22
• Location advantage: Unit setup in Agro belt, Southern India being one of prominent market for MDF - located close to Southern port making it easier to facilitate export of our products
• Attractive incentive package offered by Andhra Pradesh incurred total CAPEX of approx. Rs. 450 crores
• Started regular commercial operations from March 2021
• This plant will help Company increase market share and take care of incremental demand generated in Industry

Fire resistance

Moisture resistance

Temperature resistance

Easier pest control
Rot resistance
Easy-clean
Low maintenance

24

Our Exports shadowing global consumption

Laminates – Geography-wise Sales

• Our exports are focused in growing and fast-growing regions of furniture consumption markets
• Two star export house recognition by DGFT, Ministry of Commerce and Industry, Government of India
• Exports destinations – fastest growing markets of North America, Asia Pacific, Middle East

* Source: Global Market Insights

2017 2018 2019 2020 2021

26

Awards & Recognition

Mr. Krupesh G. Thakkar, Chairman of Company has three decades of experience in trading and manufacture of plywood, laminates and allied products. He has been conferred with accolades which include "Rajiv Gandhi Shiromani Award" and "Indira Gandhi Shadbhavna Award" in year 2007, acknowledging his achievement in their field of work and contribution to Nation. He was President of Indian Laminate Manufacturers Association

Our Company has been awarded with ISO 9001:2000 for Quality Assured, ISO 18001:1999 for Health and Safety and ISO14001:2004 for Environmental System for all units

Our Company operates in competitive environment were generating and maintaining brand recognition is significant element of our business strategy

Unlimited Unnati Pvt. Ltd. provided its prestigious leadership award to Mr. Krupesh G. Thakkar, Managing Director, Rushil Décor Limited for his vision, Commitment and belief in power of I CAN – I WILL IDEOLOGY. Shri Shyam Taneja, Founder Director of Unlimited Unnati awarded Shri Krupesh G. Thakkar with this award for showcasing his Unmatched Leadership Qualities towards achieving Quantum Growth

Industry Overview

China's MDF consumption 50 million CBM Huge penetration opportunity India's MDF consumption 2.8 million CBM 35% 70% 65% 30% GLOBAL INDIA Plywood MDF South, 45% North, 30% West, 15% Others, 10% Regional Demand for MDF in India MDF v/s Plywood Consumption ▪ Millennials want furniture compatible with their lifestyle ▪ Easy on pocket ▪ DIY (Do-it-yourself) trends gaining traction ▪ Made from wood, fibres and resin ▪ Sourced through agroforestry ▪ Machine dried and pressed to produce dense, stable sheets ▪ More stable than solid wood ▪ Withstands changes in heat and humidity better Global Size of MDF market* 61.3 102 2019 2027 In $ Bn The Plywood Substitution Opportunity - MDF Plywood replacement opportunity - MDF Total Indian Plywood market: INR 180 billion

Furniture of the Future: Made with MDF

* Source: grandviewresearch.com

Huge opportunity in MDF and PVC from surge in demand

Percentage share of organized/ unorganized furniture industry

Laminates Industry Snapshot

• Consumption of Indian panel products has grown at CAGR of 15-20% for organised segment
• Increasing consumerism and urbanization are key growth drivers

• Industry size INR 5,000 crore
• 40% organized sector
• 60% unorganized sector

MDF Industry Snapshot

• ~33% of India's requirement met through imports from China, Malaysia, Thailand and Sri Lanka
• Significant advantages over plywood spurring popularity

▪ CAGR of 20% presently

PVC Industry Snapshot

• Globally preferred alternative to wood and wood products

• LEED certification (green building) & enhanced recycled content credit

• Industry size INR 1,000 crore

• CAGR of 10.7% between 2016 and 2021

The Agro-Forestry Edge

What is agroforestry?

Land use system which integrate trees and shrubs on farmlands and rural landscapes to enhance productivity, profitability, diversity and ecosystem sustainability.

Impact

Improvement in productivity

Farmer income and livelihood opportunities for rural smallholder farmers

Win-win for Farmers & RDL

• Active participation in government-sponsored agroforestry projects
• Farmers in coffee growing regions of South India growing trees on their farmland.

Singapore Green Label

Indian Ecomark

• Fast growing trees such as eucalyptus, acacia, silver oaks
• Require timely cutting to protect plantations
• RDL strategically sources Agro-forestry wood from farmers
• Farmers gain second source of income

Conservation of natural resources and forest

Environmental protection security

Increasing forest / tree cover

31

Strategies for Growth – in line with Company's Vision

• Focus on expanding distributor network opening new marketing offices, appointment of new distributors
• Tapping smaller towns considered to be new emerging realty hubs for development of residential and commercial complexes, and we intend to position ourselves to capitalize on these emerging opportunities

Brand Enhancement & Increasing Market Reach Diversifying Product Portfolio by Strengthening Infra Support

▪ Enrich product portfolio of MDF products by introducing Wood PVC (WPVC) boards and marble board panels as an extension of its MDF panel product

In-depth Market Penetration, New Product Infusion coupled with additional capacity to fuel next level of growth and profitability for Rushil Decor Limited

Impact Of Government Sponsored Mission

• Demand for plywood, MDF boards and laminates is likely to remain strong with Government's focus on infrastructure and lowcost housing
• India 3rd largest consumer market globally driving demand

LEED certified Green Buildings (picking up in India) can only use MDF + PVC and no plywood

Impetus to Make in India programme on global platform gives indigenous manufacturers an inherent advantage

Growth Outlook - 4f Focus : Favourable Furniture Fundamentals 01 02 03 04 Fundamentals of Growth ▪ Product Penetration through multiple customer channels ▪ Housing Deficit & Macro demand ▪ Capacity Expansion Future of Furniture ▪ MDF & PVC led Value engineering ▪ Quality performance ▪ Design integrity & thinking Financial & Geographic Stronghold ▪ Strong financial performance ▪ Regional Leadership (South India) The Agro Forestry Edge ▪ Responsible sourcing of wood ▪ Access to low-cost raw material ▪ Second income for farmers 4F Strategy Demand Drivers for Furniture Industry – Global & Local Tourism Demand ▪ Tourism world's largest commercial industry ▪ Demand for mid-market hotels increasing in India Commercial Space Demand ▪ Demand for office spaces in top 8 cities of India alone equals 27 million square feet (MSF) Housing Demand ▪ By 2030, World will need at least 300 million new housing units and largescale investments (World Bank 2016)

▪ Expanding in other markets (East India)

For further information, please contact:

Mr. Vipul Vora Chief Financial Officer Rushil Decor Ltd Email: vipul@rushil.com Website: www.rushil.com

Mr Amit Sharma / Ms Disha Shah Bridge Investor Relations Pvt. Ltd.

Tel: +91 9867726686 / +91 9699060134 Email: amit@bridge-ir.com, disha@bridge-ir.com Website : www.bridge-ir.com