10 November, 2020 To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai — 400 001 Bandra East, Mumbai — 400051 Company code: 533333 Company code: FCL Dear Sirs/Madam, Subject :- Regulation 30, Schedule III Part A (15) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 With reference to the above caption subject, we enclose Investor Presentation for the quarter and half year ended 30th September 2020, requesting you to kindly take this in your record. Kindly acknowledge receipt of the same. Thanking You, Yours faithfully, For FINEFOTEX CHEMICAL LIMITED Sa njay Digitally signed by Sanjay Surendra Surendra Tibrewala Date: 2020.11.10 TI brewa la 16:58:39 +05'30' Sanjay Tibrewala Director DIN-00218525 Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Investor Presentation November 2020 Drilling Specialties Textile Specialties Home Care and Hygiene Specialties Other Specialties Agenda Company Overview 3 – 14 Sustainability Approach 15 – 21 Financial Performance 22 – 27 2 Company Overview 3 An Introduction to Fineotex Speciality chemicals producer for 4+ decades with a market 450+ 60+ leading position in the international textiles industry Product Categories Countries Present Bluesign, ZDHC, Successful entry into home care and hygiene and drilling 43,000+ MT p.a. Star Export House Installed Capacities speciality chemicals Accreditations 100+ Rs. 270 mn Biotex Malaysia spearheads the R&D solutions, application Dealers in Indian and Deployed for brownfield research and product development International Market facility at Ambernath, Maharashtra Attractive industry dynamics with technical barriers to entry Rs. 600 mn Rs. 3,520 mn Liquid Investments as Market Capitalization as and high levels of development and product customisation on 30th September 2020 on 30th September 2020 4 Fineotex Investment Case Business Dynamics Acquisition Track Record Global Customer Reach • Fineotex and Biotex associated with • Biotex (73% owned) net profit has • International acceptance by high quality and innovation across grown by a factor of 4x since profile customers industries globally acquisition in 2011 • 50% of sales come from 60+ countries • Top 10 customers: 33% of sales • De-leveraged into a debt free • Top 10 products: 18% of sales Company Promoter Commitment 10 Year Financial CAGR Robust Balance Sheet • Promoter stake up from 62.5% to 71% • Revenues 24.4%, EBITDA 21.7% , PAT • Net cash positive, well poised for growth over time 22.2% • Rs 600 mn of liquid investments: • Incremental shares purchased at • Cash Flow from Operations 22.0% Rs. 270 mn allocated to upcoming market prices higher than IPO issue • Cash Flow from Operations to EBITDA brownfield facility price at 83% in FY2020 • Disciplined approach to acquisitions 5 Our Evolution 1995 2004 2007 2011 2014 ❖ Incorporation of ❖ Accredited with ❖ Acquisition of FCPL ❖ Listed on BSE ❖ Bonus declared on 1:1 Fineotex ISO 9001:2008 by Fineotex Chemical ❖ Incorporated wholly owned basis Chemical ❖ Incorporation of Limited subsidiary in Malaysia ❖ Accredited with ISO Industries (FCI) Fineotex ❖ Acquired majority stake in 4001:2004 & OHSAS Chemical Private Biotex Group 8001:2007 Limited (FCPL) certifications 2015 2017 2018 2019 2020 ❖ Listed on NSE ❖ Fineotex Chemical ❖ Awarded as IPF ❖ Biotex partnered with ❖ NSE top 1,000 companies ❖ Received Star Limited fastest growing Bluesign ❖ Buyback of 11 lacs shares Export House announced first chemical ❖ Manufacturing capacity up to a maximum price of recognition buyback manufacturing increased to 43,000 Rs. 40 Company at BSE MTS annually and both ❖ Deployed Rs. 270 million for Limited on December facilities GMP certified new brownfield facility at 20, 2017 Ambernath, Maharashtra 6 Driving Future Growth Home Care Specialities Hygiene Specialities Textile Specialities Drilling Specialities Leverage core manufacturing and development expertise into new high growth areas 7 Focus on Growth and Diversification Home Care and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • A unique ‘Mosquito Life Cycle Controller’ ▪ FMCG - branded detergents • Significant potential for offering effective product under development by Biotex ▪ Public Health and Hygiene products used for drilling in oil exploratory • Non toxic eco-friendly solution designed with processes European technology in Malaysia by Biotex • Significant opportunity to work with leading branded detergent manufacturers for their • Sizable orders from a leading oil and gas • Approved by Ministry of Health Malaysia, polymer requirements company in India Singapore PUB, European Union, NSF and relevant authorities in Vietnam and Cambodia • Post the outbreak of COVID-19, large addressable market for solutions used in disinfectants and sanitizers Key Products ‘Mosquito Life Cycle Controller’ Home care and Hygiene Chemicals under development Non-textile segments will drive volume and value growth going forward 8 Upcoming Facility at Ambernath, Maharashtra ➢ Located on ~4 acres of land ➢ Expect to commission first phase of the brownfield manufacturing facility in Q1 FY2022 ➢ Proposed deployment of Rs. 270 million ➢ Cater to customer demands in the existing Textile Specialities and fast growing Home Care and Hygiene and Drilling Specialities business ➢ State of the art automated unit which will be fully compliant with the highest standards of sustainability Ambernath, Mumbai ➢ Located in close proximity to key port areas near Mumbai providing logistical and cost advantages Upcoming facility provides additional manufacturing capacity for existing product lines and new growth areas 9 Synergistic Business Model Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applications value chain: pre-treatment to finishing • Sustainable and effective textile solutions • Focused on textiles and rapidly entering other • Grow ‘Mosquito Life Cycle Controller’ revenue fast growing sectors Focus Areas share • High profile India customer base • High profile International customer base • Textile and auxiliary sectors • Textile, Home Care and Hygiene, Drilling and • ‘Mosquito Life Cycle Controller’, an eco friendly Business Segments Other Specialities non toxic solution for mosquito outbreaks used primarily across developing countries • Strong brand recall in Indian markets • Strong brand recall in International markets Competitive Edge • Reputation for diverse product portfolio • Solutions for finishing process in textile • Deep customer relationships • Strong R&D capabilities Fineotex and Biotex complement each others strengths and offer distinguished speciality chemical solutions globally 10 Specialty Textile Chemicals Overview Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Sizing Scouring, Washing, Printing, Process Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, Fixer Product Polymers, Silicones, Detergent, Levelling, Detergent, Categories Softeners Polymers, Sequestering Detergent Loop Resins Additives Fixer accelerator Key Customers Fineotex + Biotex together offer tailored solutions across the textile value chain with a focus on higher realisations 11 New Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 12 Global Customer Reach • Sales in 60+ countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, USA and Vietnam • 30+ technical marketing experts • 100+ dealers in Indian and International markets FY20 Revenue Mix 52% 48% Facilities at Mahape and Ambernath (upcoming), Mumbai, India Facility at Bangi, Malaysia Sales International India Diversified revenue mix across clients, products and geographies coupled with technical expertise 13 Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies Upcoming brownfield facility at Ambernath, Maharashtra to be future ready for next phase of growth. Partnerships with International companies to establish manufacturing facilities in India Greenfield Developments Enter fast growing synergistic segments such as Home Care and Hygiene and Drilling Specialties while continuing to focus on the core Textile Chemicals business New Product Categories Strong in-house development capabilities to grow market share across existing and new customers in both Indian and International markets. Continue to develop direct customer relationships and expand distribution network Grow Market Share Fineotex has a conservative approach to funding acquisitions, capacity expansions and greenfield/brownfield developments through internal accruals. Capital structure targeted to be net debt neutral Disciplined Capital Allocation 14 Sustainability Approach 15 Board of Directors Surendrakumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Navin Mittal Chairman and Managing Director Executive Director Executive Director Independent Director Alok Dhanuka