Balrampur Chini Mills Limited

Corporate Presentation September - 2018

Safe Harbour

Certain statements in this document may be forward-looking statements. Such forward-

looking statements are subject to certain risks and uncertainties like government actions,

local political or economic developments, agricultural policies, climatic conditions,

technological risks, and many other factors that could cause our actual results to differ

materially from those contemplated by the relevant forward-looking statements. Balrampur

Chini Mills Limited will not be in any way responsible for any action taken based on such

statements and undertakes no obligation to publicly update these forward-looking

statements to reflect subsequent events or circumstances.

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3 Table of Content

Global Scenario

Indian Scenario

BCML

BCML Financial Performance

Global Scenario

The Global Story

Global sugar demand is expected to increase to 192 mn tones by 2021 and 235 mn tones by

2030 compared to 183 mn tones in 2017

Asia will remain the biggest consumer of sugar, increasing its share of total consumption from

around 40% to 45% by 2021

By 2030, India and China will still remain the biggest consumers accounting for nearly 25% of

global consumption

Consumption in Europe is expected to remain stable

Africa will also begin to emerge as a major consumer by 2030

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Sugar Opening Stocks

Sugar Production

Internal Consumption

Consumption Growth Y-o-Y

Closing Stock

Months of Consumption

Global Sugar Status

Supply Mismatch

Over last 20 years sugar production has risen by 45% to over 195 mn tones

Global consumption expected to be around 183 mn tones

Concentrated Industry

Industry is mature and increasing production is difficult given the demand on acreage

India, Africa and EU Key to fill Demand

Brazil has almost reached its saturation point, which currently accounts for 45% of global exports

Weather – A key Determinant

World sugar production still heavily dependent on weather and continued cyclical production patterns

Sugar Diversion to Ethanol

Sugarcane is also getting diverted towards Ethanol globally in view of need to produce green power

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43 44

180 195

179 183

1.4 2.2

44 56

2.9 3.7

2016-17 2017-18E

E = Estimated

Fig. in Mln tons

Global Sugar Scenario - Updates 7

CS Brazil

UNICA projects CS Brazil cane crush of ~588 mn tones in MY 2018-19, down from 596.3 mn tones

Sugar production expected at ~29 mn tones, lower by 7 mn tones on account of climatic conditions and higher switch to Ethanol

China

USDA estimates sugar output ~10.6 mn tones ~5% higher than previous year

Demand expected to increase to ~15.2 mn tones

Imports are forecast at ~3.0 mn tones a decline of ~1.2 mn tones

Thailand

Production is expected ~ 14.2 mn tones

Exports expected to increase to ~10 mn tones

EU

Production is expected ~ 20.2 mn tones

Expected to be ~3 mn tones net exporter

From a peak deficit of 7 mln ton the world has made a swift recovery to show back to back surpluses during both

2017-18E an 2018-19E (October to September) of 11.6 mln ton and 11.9 mln ton

Indian Scenario

Indian Sugar Industry – Size & Overview

Area under Sugarcane: 4.95 million hectares [sugar season 2016-17]

Sugarcane Production: 304 million tones [sugar season 2016-17]

Number of Sugar Mills in Operation: 493 [sugar season 2016-17]

Average Capacity of Sugar Mills: 3,800 TCD

Production of Sugar: ~32 million tones [sugar season 2017-18] as compared to

20.2 million tones [sugar season 2016-17]

Average per capita consumption: 18.9 kgs of sugar and 4.1 kgs of other sweeteners

Refinery capacity: 4.50 million tones

Provides direct employment: ~5 million workers

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Domestic Sugar Balance 10

Opening Stock

Production

Increase in Production

Internal Consumption

Growth Y-O-Y

Exports

2013 2014

Imports

Closing Stock

Months of Consumption

2015 2016 2017 2018 E

7.6 8.2 6.5 8.8 7.7 3.9

25.1 24.3 28.3 25.1 20.2 32.3

-4.56% -3.19% 16.46% -11.31% -19.52% 59.90%

23.0 24.0 24.8 24.6 24.5 25.5

2.68% 4.35% 3.33% -0.81% -1.63% 4.08%

1.5 2.0 1.2 1.6 - 0.5

- - - - 0.5 0.2

8.2 6.5 8.8 7.7 3.9 10.4

4.3 3.3 4.2 3.8 2.0 4.9

( Fig. in Mln tons )

Sector Perspectives

• Sugar mills in U.P. was ~12 million tones of sugar in SS 2017-18 as compared to 8.8 million tones last season, owing to better yields.

• Maharashtra mills produced ~10.8 million tones in SS 2017-18 as compared to 4.2. million tones in previous season, owing to higher acreage.

• Sugar production in Karnataka was ~3.6 million tons in SS 2017-18 as compared to 2.2 million tones in previous season.

India’s sugar production for the

2017-18 season was ~32.3 million tones, up

~59.90% as compared to 20.2

million tones produced in previous season

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For 2018-19 season production is expected ~34 million tones. U.P. set to produce ~13~mln tones whereas Maharashtra and Karnataka is expected ~~11.5 mln tones and 4.5 mln tones

respectively

Key data on Indian Sugar Industry 12

Acreage (000 Hectares)

Sugarcane Production (lac Ton)

Yield per hectares (tones)

Cane Crushed (lac tones)

Drawal %

Production (lac tones)

2012-13

Average Recovery %

Average Duration (days)

No. of mills in operation

2013-14 2014-15 2015-16 2016-17

5279 5341 5307 5284 4945

3545 3456 3668 3369 3036

67.1 64.7 69.1 63.7 61.3

2506 2385 2730 2365 1941

70.69% 69.01% 74.43% 70.20% 63.93%

25.1 24.3 28.3 25.1 20.2

10.03% 10.23% 10.37% 10.62% 10.44%

126 125 135 117 99

526 509 538 526 493

Comparison of FRP with SAP paid by some States 13

FRP*

Uttar Pradesh

Bihar

Punjab

Haryana

2012-13 2013-14 2014-15 2015-16 2016-17

170.00 210.00 220.00 230.00 230.00

280.00 280.00 280.00 280.00 305.00

255.00 255.00 255.00 260.00 280.00

245.00 280.00 295.00 295.00 305.00

271.00 295.00 305.00 305.00 315.00

`/Qtl. of sugarcane

2017-18

255.00

315.00

310.00

310.00

330.00

SAP – as announced by respective states for the normal variety of sugarcane

* Linked to recovery of 9.50%

FRP – for SS 2018-19 has been fixed at Rs. 275 per qtl. of cane linked o recovery of 10%

BCML

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Locations

15

76,500

TCD Sugar Capacity

163.2

MW Cogen Saleable Capacity

A Leading Integrated Sugar Player In India

360

KLPD Distillery Capacity

Management expertize: Strong management team with years of sugar industry experience

One of the pioneers of Integrated Business Model in India that stabilizes

revenue streams along with providing a hedge against the sugar cycle

Latest technology implemented to achieve highest operational results and

leverage inter-plant synergies to maximize by-product utilization Operational efficiencies

Integrated model

Maximize value accrual from

every ton of cane crushed

Greater hedge against the

sugar cycle

Economic sized operations

driving cost efficiencies

Close proximity between

plants maximizes by-product

utilization

Business Model

Supported by

very strong

farmer

relationships

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Integrated operations Intra-plant synergies

Plant Locations 17

Balrampur

Babhnan

Tulsipur

Haidergarh Akbarpur

Mankapur

Rauzagaon

Kumbhi Gularia

Maizapur

UTTAR PRADESH

Factory Locations

Sugarcane crushing capacity at 76,500 TCD, Distillery and

Co-generation operations of 360 KLPD and 163.20 MW

(Saleable) respectively

* During season saleable cogeneration capacity is 16 MW

UNITS Sugar

Capacity (TCD)

Distillery

(KPLD)

COGEN POWER (MW)

SALEABLE CAPACITY

BALRAMPUR 12,000 160 27.25

BABHNAN 10,000 100 8.00

TULSIPUR 7,000 - -

HAIDERGARH 5,000 - 20.95

AKBARPUR 7,500 - 11.00

MANKAPUR 8,000 100 30.00

RAUZAGAON * 8,000 - 23.00

KUMBHI 8,000 - 23.00

GULARIA 8,000 - 20.00

MAIZAPUR 3,000 - -

Update on Allied Segments 18

The Board of Directors of the

Company has approved

setting up of 160 KLPD Zero

Liquid Discharge distillery at

Gularia Unit at an estimated

Capex of around 207 crores.

The augmentation of the said

distillery will enhance the

total distillation capacity of

the Company to 520 KLPD

Achieved zero discharge at all the three distilleries

Benefits of Ethanol Blending Programme:

Improves ability to pay farmers on time

Eco-friendly product

Generates green power through bagasse where nearly 32% of the power produced is self consumed and rest is exported to state electricity grid at predetermined tariff

Distillery

Cogeneration

Board of Directors 19

KAMAL NAYAN SARAOGI – Chairman Emeritus

MEENAKSHI SARAOGI – Chief Mentor

SUMIT MAZUMDAR, Chairman (Independent Director)

VIVEK SARAOGI, Managing Director

DINESH K. MITTAL (Retd. IAS), Lead Independent Director

R. N. DAS (Retd. IAS) , Independent Director

KRISHNAVA DUTT, Independent Director

NOVEL L. LAVASA, Independent Director

SAKTI PRASAD GHOSH, Independent Director

DR. ARVIND KRISHNA SAXENA, Whole-time Director

NARESH DAYAL, Non-Executive Director

Shareholding Pattern – As on 30th June, 2018 20

Promoters, 41

Fund Houses / Insurance Cos. /

Banks 8

FII / FPI, 19

Body Corporate, 5

Public & Others, 27

BCML Financial Performance

5 Year Operational Summary 22

FY14 FY15 FY16 FY17 FY18

Revenue from Operations 2758.71 3093.21 2874.07 3641.00 4400.72

Gross Profit 599.99 492.07 826.83 1327.75 895.69

PBDIT 239.96 141.54 457.45 894.51 479.43

Finance Costs 117.84 102.09 66.55 55.43 52.03

PBDT 122.12 39.45 390.90 839.08 427.40

Depreciation & Amortization 109.45 115.61 110.11 104.94 95.22

Profit before tax and exceptional items 12.87 (76.16) 280.79 734.14 332.18

Exceptional items - - 173.10 - -

Pre-tax profits 12.87 (76.16) 107.69 734.14 332.18

Tax 9.03 (18.43) 7.43 141.86 111.06

Profit for the year 3.64 (57.73) 100.26 592.28 221.12

Other comprehensive income (net of tax) N.A. N.A. (0.38) (3.63) (4.55)

Total comprehensive income N.A. N.A. 99.88 588.65 216.57

Equity capital 24.48 24.50 24.50 23.50 22.84

Reserves (excluding revaluation reserve) 1193.84 1104.78 1207.02 1517.75 1564.30

(` in Crores)

Statement of latest quarterly Profit & Loss 23

(` in Crores)

Q1 FY19 Q1 FY18 % Y-o-Y

Growth FY18

Revenue from operations 1002.54 1136.45 -11.78% 4400.72

EBITDA 129.38 206.72 -37.41% 479.43

Depreciation 23.29 23.82 -2.33% 95.22

Finance costs 16.53 26.37 -37.32% 52.03

Profit Before Tax 95.13 163.49 -41.81% 332.18

Total Comprehensive Income 73.19 119.78 -38.90% 216.57

Diluted EPS (`) 3.22 5.11 - 9.41

Segmental Overview – Sugar 24

772.80 805.69 742.56 794.65

927.83

48.87

216.15

FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19

Cane Crushed (Lac Quintals)

9.77 9.83 11.06 10.66 10.84 12.10 11.11

FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19

Sugar Recovery (%)

30.25 29.40 27.07 35.90 35.56 36.65

28.42

FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19

Avg. Realization - Sugar (` per kg)

75.52 79.19 82.15 84.70 100.56

5.91 24.02

FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19

Production (Lac Quintals)

Segmental Overview – Distillery 25

77,950 69,903 70,555 72,158

81,003

21,561 28,806

FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19

Production (KL)

74,080 74,202 64,749 69,180

80,659

24,402 29,961

FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19

Sales (KL)

32.62 37.40 40.41 42.55 39.15 38.97 40.26

FY 14 FY 15 FY 16 FY 17 * FY 18 Q1 FY18 Q1 FY19

Avg. Realization - Distillery (` per BL)

* Govt. had waived excise duty on supply of Ethanol for sugar season 2015-16 which resulted in higher realization for FY17.

Segmental Overview – Co-generation 26

7,505 8,295

7,469 7,537 8,741

1,972 3,028

FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19

Production (Lac units)

4.17 4.23 4.77 4.81 4.81 4.80 4.98

FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19

Avg. Realization - Cogen (` per unit)

5,474 6,168

5,307 5,105 5,680

1,457 2,111

FY 14 FY 15 FY 16 FY 17 FY 18 Q1 FY18 Q1 FY19

Power sales (Lac units)

Going Forward

Investing in the entire ecosystem

• Working together with farmers to inculcate better agricultural practices and educating them to adopt modern techniques

• Improving varietal balance, following stringent process and quality control procedures

Strengthening the Balance Sheet • Long term debt as on June 30, 18 stood at `105.5 crore. Long-term Debt-Equity ratio stood at 0.06 as on June 30,

2018

• ICRA and CRISIL both has assigned the long-term loan rating to AA and the short-term credit rating to A1+

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Focus on creating value for all stakeholders

• Declared dividend of `2.50 (250%) for the FY 17-18 leading to a total outgo of `70.72 crore( including dividend distribution tax of `11.96 crore) and also completed buy-back of 66 lac equity shares involving an outgo of `99.00 crores

• During FY 16-17 declared dividend of `3.50 (350%) and also completed buy-back of 1 cr equity shares involving an outgo of `175 crores

Contact Us

About Balrampur Chini Mills Limited - CIN: L15421WB1975PLC030118

Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The allied businesses of the Company comprise distillery

operations and cogeneration of power. The Company presently has ten sugar factories located in Uttar Pradesh (India) having an aggregate

sugarcane crushing capacity of 76500 TCD, distillery and co-generation operations of 360 KLPD and 163.2 MW (Saleable) respectively.

BCML is one of the most efficient integrated sugar producers in the country. The Company has grown its capacity by well-planned capacity expansion

projects and the acquisition of existing companies over recent years.

For more information on the Company, please log on to www.chini.com.

For further information contact:

Pramod Patwari

Chief Financial Officer

Balrampur Chini Mills Limited

Tel : +91 33 2287 4749

Fax: +91 33 2289 2633

Email: pramod.patwari@bcml.in

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Registered Office: FMC Fortuna, 2nd Floor, 234/3A, A. J. C. Bose Road, Kolkata 700020.

Anoop Poojari / Karl Kolah

CDR India

Tel: +91 22 6645 1211 / 1220

Fax: +91 22 6645 1213

Email: anoop@cdr-india.com /

karl@cdr-india.com

Thank You