Atul Limited · NSE:ATUL

Atul — Investor Presentation (July 2007)

46 slides from Atul's investor presentation, Jul 6, 2007

1. Slide 1: Welcome

   Welcome July 6, 2007

2. Slide 2: Lalbhai Group

   Lalbhai Group  Commenced manufacturing activities in 1908  Textiles, Chemicals, Engineering, Finance  Group sales US$800 million  Health, Education, Culture

3. Slide 3: The Arvind Mills Ltd

   rs - FA a Eh, | Mills Ltd

4. Slide 4: Indian Institute of Management, Ahmedabad

   Indian Institute of Management, Ahmedabad

5. Slide 5: Atul Ltd

   Atul Ltd  Founded in 1947 by Kasturbhai Lalbhai  Manufacturing and marketing of chemicals  Create wealth, generate employment, be self reliant

6. Slide 6: A moment of historic significance

   A moment of historic significance

7. Slide 7: Slide 7

8. Slide 8: An aerial view of Atul site

   An aerial view of Atul site

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10. Slide 10: Manufacturing sites

    Manufacturing sites 2 Land 1300 acres Effluent treatment plant 30000 cubic metres‫׀‬day Secured solid waste disposal facility 50000 MT Captive power plant 40 MW Water storage (2 weirs) 2 million cubic metres

11. Slide 11: Township: houses, schools, medical centre

     1150 houses  2 schools  Medical centre  Recreational facilities

12. Slide 12: JVs

    JVs Partner Duration Area American Cyanamid 1947-2000 Agro‫׀‬Pharma American Home 2000… Pharma Products ICI 1955-1995 Dyestuffs Polymers‫׀‬Pharma Ciba 1960-1999 Intermediates

13. Slide 13: Customers World-wide

    Customers World-wide = — ol ’ The Chemical BASF @ CHEMINOVA | # hemtura™ tura \ Clariant =» Crompton a%e G Dow AgroSciences i Y Dr.REDDY’S DySta re” Givaudan? S Great Lakes Gem) CHEMICAL CORPORATION

14. Slide 14: Sales

    Sales Rs cr 1000 895 814 800 681 600 566 400 200 03-04 04-05 05-06 06-07

15. Slide 15: Profit

    Profit Rs cr from operations 80 62 62 60 43 40 34 33 31 20 15 7 0 03-04 04-05 05-06 06-07 PBDT* PBT* Excluding VRS

16. Slide 16: Financial Highlights 06-07

    Financial Highlights 06-07 Rs cr 05-06 06-07 Growth over PY % of Budget A A B Net Sales 814 895 915 10% 98% Contribution 240 234 265 (3)% 88% Contribution % 29 26 29 PBIDT 91 90 109 (1)% 83% PBDT 62 62 76 0% 82% PBT 33 31 43 (6)% 72%

17. Slide 17: Profit Reconciliation: CY vs PY

    Profit Reconciliation: CY vs PY Rs cr Operating PBT 2005-06 33 Reduction in profit due to: Higher sales to production ratio over PY (11) Higher repairs & maintenance (4) Increase in raw material prices (net), etc (30) Higher depreciation (2) Total reduction (47) Increase in profit due to: Dollar app

18. Slide 18: Cash Flow from Operations

    Cash Flow from Operations Rs cr 06-07 05-06 Inc|(Dec) Operating profit before capital changes 80 87 (6) Inventories 37 (38) 75 Debtors (37) (14) (22) Other receivables (7) (12) 4 Creditors & other payables 23 18 5 Cash generation from operations 96 40 56 Tax payments (17) (2) (15) VRS payments (5) (

19. Slide 19: Cash Flow from Operations (continued)

    Cash Flow from Operations (continued) Rs cr 06-07 05-06 Inc|(Dec) Net cash flow from operations 74 17 57 Uses: Capex (46) (54) 8 Proceeds (repayments) 22 (14) 36 from borrowings Interest payments (28) (29) 1 Dividend payments (10) (7) (3) Dividend receipts 5 4 1 Other inflows 7 83 (76) Net increase

20. Slide 20: Position of Borrowings 2006-07

    Position of Borrowings 2006-07 Rs cr 06-07 05-06 Inc|(Dec) Secured Loans 319 308 11 Unsecured Loans 49 41 8 Total 368 349 19 Note: One loan of US$5.5 m availed end of March has been parked partly as short term FDR amounting to Rs16 cr carrying 11.25% p.a. interest rate.

21. Slide 21: Gross Block

    Gross Block Rs cr CY PY Inc|(Dec) Gross block 715 688 27 Division Project Amount AG Indoxacarb 40 TPA 6.50 AR p-Cresol 10,000 to 12,000 TPA 2.00 AR p-Anisic acid 150 TPA recovery 1.70 CO Benzathrone Toluene extraction 1.20 CO Vat Green 1 120 TPA 1.10 COR Wyeth assets 8.00 Others 6.50 Total 27.00

22. Slide 22: Salient features: AG

    AG Salient features  3rd largest producer of 2,4D in the world  Increasing domestic distribution network  Increasing input prices  Reducing formulation margins  Shrinking demand in Indian market Strategic actions planned | under implementation  Increase brand business  Reduce variable cost of

23. Slide 23: Salient features: AR

    AR Salient features  Global leader in 3 major products  Increasing input prices  Margins under pressure for commodity business Strategic actions planned | under implementation  Increase capacity of existing value added products  Enter high price markets  Introduce more value added products

24. Slide 24: Salient features: BI

    BI Salient features  Volatile selling prices  Margins under pressure being commodity business Strategic actions planned | under implementation  Introduce value added down stream products of  Increase capacity of Resorcinol  Achieve cost reduction through improved technology

25. Slide 25: Salient features: CO

    CO Salient features  Established player in VAT dyes  Increasing input prices  Increasing domestic consumption Strategic actions planned | under implementation  Acquire synergistic vat finishing capacity  Reorganise marketing setup  Introduce new value added products  Increase sourcing activit

26. Slide 26: Salient features: PI

    PI Salient features  Global leader in one major product  High contribution margin Strategic actions planned | under implementation  Increase capacity of 2 major products  Introduce new phosgene based products  Introduce several other intermediates pharma inters and APIs

27. Slide 27: Salient features: PO

    PO Salient features  Increasing input prices  Margins under pressure for commodity business Strategic actions planned | under implementation  Reorganise marketing set-up  Expand capacity of BLR  Introduce brands

28. Slide 28: Capex

    Capex Rs cr Div| Project PBT PBT Payback Period Brief description Unit Cost 2007-08 Full Cap (Years) PAAL capacity increase from AR 3 1 2 2 1000 to 2000 tpa Resorcinol capacity increase BI 14 7 2 from 1300 to 2000 tpa New ACPD system with multiframe BI cell cover for CE improvement 3 1 1 2 from 92%

29. Slide 29: Major Initiatives

    Major Initiatives (Consideration|Implementation) Rs cr Div Initiative C|I Sales AG Catalytic chlorination|Chlorophenol C 50 2,4 D capacity enhancement C 30 AR PAA expansion I 54 PAAL expansion I 6 Multipurpose plant C 36 Sulfonics C 22 BI Resorcinol expansion (3000 MT) C 34 Resorcinol derivatives I

30. Slide 30: Direction, value added products

    Direction, value added products AG Brands, Introduction of new products AR F&F chemicals, Antioxidants BI Resorcinol downstream, SO2‫׀‬SO3‫׀‬Cl2 downstream CO Specialty dyes & organic high performance pigments FL Essential oils PI Phosgene based intermediates, other pharma inters and APIs PO Consume

31. Slide 31: Value Added Products (Launched)

    Value Added Products (Launched) AG CO  Clodinafop  Vat Red 10  Imidacloprid  Indoxacarb PI  Metsulphuron methyl  Sulphosulphuron  1,1’-Carbonyl diimidazole  Triazoles  1-Chloroethyl chloroformate  1-Chloro-2-methylpropyl chloroformate AR  DDS  4-Nitrophenyl chloroformate  p-Anisic aldeh

32. Slide 32: Value Added Products (Pipeline)

    Value Added Products (Pipeline) AG CO  Fipronil  Auxiliaries  Imazethapyr  High performance pigments  Mecoprop-p  Quizalop-p PI AR  Azepine  1-CECC  p-Anisyl acetone  1-CECF  p-Anisyl phenylacetate  1-CEIC  p-Anisyl propanol  HEGC  p–Cresyl acetate  Lauryl chloroformate  4-MPCF  PT

33. Slide 33: Brands AG

    Brands AG My ag = Rito Ne “Weas o. a AC

34. Slide 34: Brands PO

    Brands PO

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46. Slide 46: Thank You

    Thank You

Atul — Investor Presentation (July 2007) on 6ix