Ref: SECT: STOC: 43-21 May 21, 2021 Tu To The Secretary The Manager, BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, C-1, G Block, Bandra-Kurla Mumbai - 400 001 Complex, Sandra (East), Mumbai - 400 051 Scrip Code: 519552 Scrip Code: HERITGFOOD Sub: Investor Presentation - revised Pursuant to Regulation 30 and other respective regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are herewith enclosing the copy of revised Investor Presentation which covers the milestones achieved by the Company during the quarter/year ended March 31, 2021, apart from that there are certain other information which is required to be known by our existing shareholders as well as prospective investors of the Company. The copy of the disclosure is available in the website of the Company i.e. www.heritagefoods.in Kindly take the same on record and display the same on the website of your exchange. Thanks & Regards For HERITAGE FOODS LIMITED UMAKANTA BARIK Company Secretary & Compliance Officer M. No: FCS-6317 Enc: a/a About the c.ompany: Heritage Foods founded in the year 1992 is one of the fastest growing Private Sector Enterprises in India, with two business divisions' viz., Dairy and Renewable Energy under its flagship company Heritage Foods Limited and Cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL). Presently Heritage's milk and milk products have market presence in Andhra Pradesh, Telangana, Kamataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Uttar Pradesh and Uttarakhand. It has total renewable energy generation capacity of 10.39 MW from both Solar and Wind for captive consumption of its dairy factories. "•AlTH AIID HAPrlll�s5o HERITAGE FOODS LIMITED CIN : L15209TG1992PLC014332 FSMS 002 AN ISO: 22000 CERTIFIED COMPANY Regd. Off:# 6-3-541/C, Panjagutta, Hyderabad - 500 082. Telangana, IN□IA. Tel.: +91-40-23391221, 23391222 Fax: 30685458 email: [email protected], website: www.heritagefoods.in INVESTOR PRESENTATION May 2021 HERITAGE FOODS LIMITED Nurture. Nourish. Flourish Discussion Summary Company Snapshot The Heritage Advantage Financial Highlights Annexures HERITAGE FOODS LIMITED Company 01 Snapshot Heritage Foods Ltd. Amongst the leading private players in the Dairy Industry Overview 29 years of legacy and domain expertise in dairy industry backed with strong product portfolio and brands serving +1.5 million households in 11 states. Product portfolio includes Curd, Ice Cream, Frozen Dessert, Paneer, Butter Milk, Flavoured Milk, Lassi, A2 Milk and UHT milk. Strong relationships with +0.3 million dairy farmers for milk procurement. 18 State-of-the-art milk processing facilities with a processing capacity of 2.7 million litres per day (MLPD). Heritage in Numbers (FY21) Dedicated and experienced team and technologically advanced R&D Sales: INR 24,731 mn Milk Chilling Capacity: 2.1 MLPD infrastructure with stringent quality control. *PAT: INR 1,483 mn Milk Packaging Capacity: 1.7 MLPD Vision Debt/Equity: 0.10:1 Milk Processing Capacity: 2.7 MLPD To delight every home with fresh and healthy products and ROCE: 35.6% Curd Packaging Capacity: 742 MTPD^ empowering the farmer ROE: 24.9% 1 Wholly Owned Subsidiary: Heritage Nutrivet and 1 JV Co: Heritage Novandie Foods Pvt. Ltd. 4 ^Metric Tons Per Day *PAT excludes exceptional items and profit & loss from discontinued operations Nurture. Nourish. Flourish Decoding our growth mantra Nurture Nourish Flourish Empowering Direct procurement of milk from Assist and equip farmers to improve Increase farmers income, enhance the Farmers farmers milch animals' yield farmers social-economic lives Tech-Enabled Expand milk processing capabilities Maintaining stringent quality control Delighting consumers through omni- Business with state-of-the-art machinery and product innovation channel supply chain Operations Strengthening Built a strong product portfolio Heritage Novandie JV to strengthen Aspire to be nationally recognized Product through Consumer-centric approach value-added products proposition brand for healthy & fresh products Portfolio 05 Financial Debt-Equity at 0.10:1 & Cash and Cash Deploying internal accruals for funding Focus on efficient capital management Excellence Equivalents at INR 218 mn in FY21 the Company’s capex plans & maximize shareholders value 5 Deploy ‘Nurture-Nourish-Flourish’ Approach for achieving INR 60 billion landmark Technology enabled ‘Grass to Glass’ Approach ‘Tech’ it to the next level Milk Procurement Consumer Delight Digitally automated procurement systems sends Satiate tastebuds & bring delight to +1.5 mail alerts to the Procurement & Inputs team million households by supplying pure and about quality & quantity, tanker acknowledgments 01 06 high-quality milk & milk products through and farmer payments omni-channel distribution network Heritage Digit Centre 02 05 Sales & Distribution Creates SMS alerts on milk stock, tanker monitoring, procurement representative IT-enabled sales automation sends feedback, weekly status reports & other periodic analysis of sales and inventory to related activities channel partners through SMS alerts 03 04 Materials Management Operations Digitally enabled approval process from Online digitally enabled operations for handling Purchase Requisition to Purchase Order release dispatch (through GPS), product shelf life & and prompt invoice submission tracking & merchandizing communication of capex material status 6 Maintaining stringent quality check across the ‘Milk-Value Chain’ ensuring purity Presence across the value chain Concentrated focus at every stage Cattle Feed, Procurement Sale of Dairy & Milk Chilling Dairy Nutrition & from milk Value Added Centres Processing Animal Health farmers Products 18 state-of-the art 1.0 MLPD milk & 0.3 MLPD/KgPD Through wholly- 1.3 MLPD milk 2.1 MLPD milk chilling plants Value added products sold in owned subsidiary procurement per day capacity 11 States company Heritage 2.7 MLPD processing 0.3 million milk 198 Bulk Coolers, Mini Nutrivet capacity 2 Brands namely Heritage & farmers base in 8 Chilling & Chilling Centres Dairy Pure 2 modern states 1.7 MLPD packaging manufacturing capacity Omnichannel presence 12,052 procurement facilities with an 0.13 million Retail Outlets representatives 742 MTPD Curd installed capacity of 32 Heritage Distribution Centres Packaging Capacity 12,000 MT per month 858 Heritage Parlours 6 e-Commerce website 26 Organized Retail Chains/MRFs 7 Creating a sustainable business model through ‘Connecting the dots’ approach The Heritage Advantage 02 Increasing Value-Added Products Share Delighting Consumers with ‘more the merrier’ Approach Diverse Product Portfolio Value-Added Products Sales (in INR Mn) Milk Fresh Milk, A2 Milk and UHT Milk 7,222 Value Added Curd, Paneer, Cheese, Butter Milk, Flavoured 6,190 5,258 5,825 Products Milk, Milk Shakes, Immunity Milk, Sweets, 4,390 Cheese and Ice creams/Frozen Deserts FAT – CP Ghee, Butter and Fresh Cream FY17 FY18 FY19 FY20 FY21 Factors driving Value-Added Products The value-added products (VAP) have clocked a CAGR of 5.8%, during Demand FY17-21. The VAP consumption declined in FY21 due to drop in out of home consumption due to COVID-19 pandemic. However, the demand for High disposable income VAP is expected to bounce back strongly in the coming years. Convenience Business Dynamics of Value-Added Products Urbanization Easy & Cost Longer Shelf Growing consumer preference for branded healthier & nutritious High Margin Effective Life alternatives Supply Chain 9 Riding on Value-Added Products for sustainable growth and enhanced margins Robust Supply Chain Network Seasoned ‘Dairy Products FMCG’ player Heritage Foods Distribution Network Strength Sound Supply Chain Management in place for Heritage Owned Sourcing Milk directly from farmers Retail Trade Network Manufacturing high-quality milk & milk products and value-added products 0.13 Million 32 Heritage Cost-effective supply boosting omnichannel Kirana Stores Distribution Centres presence Supply Chain Management: 26 Organized 858 Exclusive Retail Chains / MRFs Heritage Parlours Success Stories Integrated technology driven supply chain flexes our procurement & distribution capabilities 6 E-Commerce 1,712 Heritage TUCH aiding tight inventory control Websites App subscribers Deployment of data analytics gives deep-insight and understanding about the consumer behaviour leading to strengthen our product portfolio 10 Strengthening the brand through omnichannel presence Technology Enabled Operations Raising the operational efficiency quotient Technology @ work Heritage TUCH App 12,052 Milk Procurement Representatives Consumer-centric Approach 113 Bulk Coolers Deploy state-of-the-art technology 76 Chilling Plants Continuous product/process innovation 18 Processing Plants Meet consumer expectations & enhance consumer delight 1,912 Vehicles Technology Integrated Network Integrated Technology 05 Convenient One-in-All App 6,223 Distributors/Agents No Minimum Order Secured Digital Payments The Power of TUCH Your Personal Assistant 11 Harnessing technology for the next wave of growth Steady operating cash flows fueled capex plans On a sound footing INR in Mn Net Cash Generated from Operating Activities Working Capital Analysis * 16 15 15 14 11 2,279 14 1,480 1,147 1,212 1,167 10 10 9 26 21 21 19 4 13 4 2 4 4 1 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Receivable Days Inventory