Corporate Presentation – August 2012

Enhancing a Sustainable Future!

Safe Harbour

Certain statements in this presentation concerning our future growth prospects are forward

looking statements, which involve a number of risks, and uncertainties that could cause

actual results to differ materially from those in such forward-looking statements. The risks

and uncertainties relating to these statements include, but are not limited to, risks and

uncertainties regarding fluctuations in earnings, our ability to manage growth, intense

competition in our industry of operations including those factors which may affect our cost

advantage, wage increases, our ability to attract and retain highly skilled professionals,

cost overruns on contracts, client concentration, our ability to manage our international

operations, our ability to successfully complete and integrate potential acquisitions,

liability for damages on our contracts, the success of the companies in which Deepak Nitrite

has made strategic investments, withdrawal of governmental fiscal incentives, political

instability, legal restrictions on raising capital or acquiring companies outside India, and

unauthorized use of our intellectual property and general economic conditions affecting

our industry. Deepak Nitrite Ltd. may, from time to time, make additional written and oral

forward-looking statements, including our reports to shareholders. The company does not

undertake to update any forward-looking statement that may be made from time to time

by or on behalf of the company.

CONTENTS

1 About DNL

4

3

2 Market Environment

Differentiators & Drivers

Financials

5 Growth Plans

Deepak Nitrite Limited - A Leading Chemical Company

Deepak Nitrite : Snapshot

Deepak Nitrite : About Us

• Established in 1970s by Mr. C.K. Mehta

• Market leader in India for Sodium Nitrite / Nitrate & Nitro Toluenes.

• DNL is a top 3 global supplier for products like Cumidines and Oximes

• On par with global players in colour intermediates business

• In-house availability of requisite building blocks

• Track record of successful acquisitions.

Milestones

1972

1972

1979

1984

1992

1994

1999

2005

2006

2011

2011

Manufacturing of Sodium Nitrite and Sodium Nitrate at Vadodara, Gujarat.

Prestigious “P. C. Ray” Award for innovation Listing on Public Markets

Co-promoted Deepak Fertilizers and Petrochemicals Ltd.

Acquisition of Sayadri Dyestuffs & Chemicals from Mafatlal group.

Multipurpose Nitro-Aromatics plant.

Hydrogenation facility near Mumbai.

Acquisition of Aryan Pesticides Limited

Relocation of Sayadri Facilities to Vadodara and Roha.

Acquisition of colour intermediate business from Vasant Chemicals Ltd

Greenfield expansion at Dahej for OBA

Brownfield expansion at Nandesari for Inorganic Intermediate - Salts

Facilities

1 Corporate Office Vadodara, Gujarat

2 Manufacturing Facility Roha, Maharashtra

3 Manufacturing Facility Taloja, Maharashtra

4 Manufacturing Facility Nandesari, Gujarat

5 Manufacturing Facility Hyderabad, AP

6 R&D Facility Pune, Maharashtra

7 Facility under implementation Dahej, Gujarat

( ( ( (

Products & Application

Specialty

Colourants

Fuel Additives

Petrol Blending

Diesel Blending

Aviation Turbine fuel

Nitro Chloro Benzene

Pharmaceuticals

Dyes

Rubber Chem.

Agrochemicals

Pigments

Xylidines

Pigment

Fuel Additive

Agro Chemicals

Pharma Interm.

Oximes

Agrochemicals

Sodium Nitrite

Dyes / Pigments

Pharma Interm.

Food colours

Electroplating

Speciality Chemicals

Colourants

Cumidines

Agrochemicals

Nitro Tolunes

Colourants

Speciality Chem

Rubber Chemicals

Pharmaceuticals

Explosives

Dyes

Specialty Chem.

DASDA

Agrochemicals

DASDA

Paper

Textiles

Detergents

Technical Capabilities – Expertise in processes

Hydrogenation / Reduction

Nitration

Sulfonation

Alkylation

Condensation Oxidation

Nox Production / Absorption

Diazotisation

Technical Capabilities

Able to handle complex and hazardous chemical processes with a high success ratio

Able to optimize processes while meeting standards on product specifications, product quality and environmental norms

Multi purpose manufacturing facilities provide flexibility to change

product mix

Focus on Technical capabilities to provide a competitive edge - R&D

efforts also directed towards improvement of existing processes to enhance competence

Environmental Care

•We are committed to best practices and technologies for a cleaner, sustainable world

•We adhere to all statutory and recommended environmental norms • R&D initiatives are supervised by Environmental scientists to ensure that all

processes optimize resources and minimize impact on environment •We have established effluent treatment plants at all of our facilities • Compliance with environmental standards and green, sustainable business models are important parameters when serving global customers

DNL – Key Strengths

• Strong Track Record in hazardous processes

• Expertise in multiple chemical processes

• Flexible manufacturing facilities

• Customer list includes marquee names

• Long-term Customer

relationships

• Exports represented 44% of FY12 sales

• Govt recognized R&D facility in Pune

• Dedicated R&D spend at approx. 1% of annual revenues

• New products of last 4 years contributing 2% of sales

• Adhering to best practices & technologies

• Compliance with environmental norms

• R&D also focusing in this area

Technical Capabilities Customer Relationships R&D Environmental Care

Provides competitive edge over Peers

• DNL has identified R&D as a key differentiator and significant value creator • Spends almost 1% of annual revenues on R&D

• Dedicated R&D facility in Pune which is Recognized by Dept. of Science and

Technology, Government of India

• R&D Headcount of over 35 personnel – Experienced & highly skilled technical manpower including 3 Ph. D’s

• State of the Art Pilot Facility as a catalyst between R&D trials and commercial production

Research & Development

Business Segments & Application

Agro-chemicals,

Pigments, Dyestuffs ,Fuel Pharmaceuticals

Segments Organic

Intermediates Inorganic

Intermediates Fine & Specialty

Chemicals

Pigments, Dyes,, Rubber Chemicals, Explosives,

Food Colour, Electro PlattingGlass

Paper, Detergent, Textiles, Agro- Chemicals, Fuel Additives, Pharmaceuticals,

Applications

% of FY2012 Revenues

57% 16% 27%

Product Categories

Nitro Tolunes, Fuel Additives, Xylidine, NCB

Cumidines,

Sodium Nitrite, Sodium Nitrate

DASDA, Oximes,

Fuel Additives, Specialty Chemicals

Supply Chain

Raw Material Vendors Market

Environment

Benzene, Toluene, Xylene, Cumene

Nitric Acid, Hydrogen

Ammonia Procured Locally

Procured locally

Multiple Local suppliers /

Direct Imports

Procured Locally at Import Parity Price Or

Imported

Available from group company

Available from local manufacturers in

Gujarat

Caustic / Chlorine Multiple local

suppliers in Gujarat

Oversupply / Availability of

substitutes

Market Environment

•Global production shifting from developed countries to developing economies •Demand for end products growing well in regional economies

• India established as favorable and reliable supplier in view of heightened

focus on environmental awareness. •High barriers to entry are favoring established players

•DNL position strong due to

• Established long-term contracts with global MNCs • Supplying large proportion of requirement in key products • Supplies are split between different customers, markets and currencies thereby mitigating risk arising in any individual market

Customer Relationships

• Deepak Nitrite has a diversified customer base consisting of some of the largest chemical companies in the world, including Sygenta Global, Bayer Crop Science, BASF, Kemira, Lanxess, Clariant, Isochem, Lonza, IOC, Reliance, Essar and Sudarshan Chemicals.

• 44% of the company’s FY12 turnover was through exports

• Long standing relationships - have been supplying products for periods ranging from 5 to 10 years with several customers

• DNL has gone beyond the customer-vendor relationship and has entered into long-term partnership arrangements with many of its customers

• Diversified customer base exposes company to different industries, economic cycles and currencies thereby providing a natural hedge

Key Customers

Inroads to USA

•DNL has been able to make inroads into the US market

• Pursuing additional business wins as the US market is large and lucrative – offering significant growth opportunities

•DNL is already catering to India & Europe – by establishing itself in China & USA, DNL will be catering to the largest markets across the globe

• Exports to USA were Rs. 63 crore in FY12, registering a growth of 31 % over previous year.

Key Differentiators

GLOBAL

Supplier of choice for

leading global

companies

EXPERTISE

Capability in Handling

complex & hazardous

chemical processes like

Nitration,

Hydrogenation &

Catalytic Reactions.

SAFETY

Emphasis on adherence

to Environmental

Norms

INNOVATION

Focused on R&D

leading to new

product/process

development

FLEXIBLE

Ability to change

product mix as per

market requirement

INTEGRATION

Only company to

forward integrate from

Toluene to OBA

through Greenfield

expansion at Dahej

MARKET LEADER

Among top 3 in

almost all the

products / markets

we operate

GREEN ENERGY

Working towards

manufacturing of solar

salt for entering into

renewable energy

through Brownfield

expansion in Nandesari

DIVERSITY

Presence in multiple

applications and

product streams along

with presence in

different geographies

insulates DNL from

various market risks

Developing “New Product and New Application” for established markets

Business Drivers

Reduction in Carbon emission norms

Growth in Environmental Challenging areas

Cost competitiveness causing consolidation of weaker players

in developed economies

Growth Markets shifting to Asia

Growth Drivers

Organic

Expansion

Greenfield

project in Dahej

Deepening of

Global

relationships

Value added

products &

partnership

arrangements

Development of

innovative

technologies as a

means to

enter mature

markets

Expanding

product basket

Based on

current/new

technologies

Intensifying

geographical

reach

New market

in-roads,

competitive

position in

China,

USA

Inorganic

opportunities

Adding business

value with

attractive

return on

Invested capital

Solar Salt

Augmentation

of new business in

renewable energy

Have introduced the following products in recent years:

• Fuel Additives : • Antioxidants & cetane improver for improving quality of fuels to meet norms.

• DNL offers petrol additives, diesel additives and aviation fuel additives

• Strong demand and lucrative and growing market

• FY12 revenue of Rs. 98 crore, recording an increase of 56 % over previous year

Xylidines: • Agro intermediate - down stream product of existing products.

• Demand for end product driving market for this product

• FY12 revenue of Rs.115 crore, , recording an increase of 6 % over previous year

NSA: • Down stream value added product of Inorganic Intermediate.

New Product Development

6774

7927

0.0

1,500.0

3,000.0

4,500.0

6,000.0

7,500.0

9,000.0

FY11 FY12

Re

ven

ue

s (R

s m

n)

Revenues

Financials – FY12 vs. FY11

621581

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

FY11 FY12

EBIT

DA

(R

s m

n)

EBITDA

370316

0.0

100.0

200.0

300.0

400.0

500.0

FY11 FY12

PB

T (R

s m

n)

PBT

258 231

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

FY11 FY12

PA

T (R

s m

n)

PAT

Deepak Nitrite : Revenue Profile

• New Product introduction and

enhancement of offerings leading to

higher demand

• Shift of global production to domestic

manufacturers also driving traction

• Incremental revenue is coming

from Agro and fuel additives

business and its share in overall

sales basket is going up.

Deepak Nitrite : Exports

Financials – Key highlights FY12

•Increased volumes by 5% in FY12 compared to FY11

•Fuel additives gain traction. Contribute to Rs. 98 crore of revenue in FY12,

higher by 56% over last year

•Net Debt to Equity ratio is 0.68

•Augmentation of existing manufacturing facilities on track; significant progress

in FY2012

Financials – Shareholder Value Perspective

FY12 FY11 FY10 FY09 FY08

EPS (Rs.) 22.06 24.65 21.82 31.55 7.84

DPS (Rs.) 6.00 6.00 5.00 5.00 4.00

NETWORTH (Rs. Cr.) 253 238 219 191 168

BVPS (Rs.) 242 228 210 213 187

MARKET CAP (Rs. Cr.) 150 185 143 73 103

NET DEBT (Rs. Cr.) 171 58 67 90 135

Deepak Nitrite : Financial Stability

• Consistent track record of paying dividends

• Strong Revenue growth – improving operating cash flows

• Steady growth in Networth

• Low gearing: Net D/E of 0.68 (March 31, 2012)

• BVPS of Rs. 242

Growth Drivers

PRODUCT: PERFORMANCE CHEMICAL – OPTICAL BRIGHTENING AGENT

SEGMENT: FINE & SPECIALTY CHEMICALS

CAPITAL OUTLAY: Rs 200 CRORE (EST)

PROJECTED REVENUES: Rs 400 – 450 CRORE AT PEAK UTILISATION

FULL CAPACITY UTILISATION: 3 YEARS AFTER COMMISSIONING

TIME FRAME FOR COMPLETION: DECEMBER 2012 (TENTATIVE)

DAHEJ - GREENFIELD EXPANSION 1

Growth Drivers

PRODUCT: INORGANIC INTERMEDIATE – SALTS

SEGMENT: INORGANIC CHEMICALS

CAPITAL OUTLAY: Rs 40 CRORE (EST)

PROJECTED REVENUES: Rs 120 – 140 CRORE AT PEAK UTILISATION

FULL CAPACITY UTILISATION: 3 YEARS AFTER COMMISSIONING

TIME FRAME FOR COMPLETION: SEPTEMBER 2012 (TENTATIVE)

NANDESARI - BROWNFIELD EXPANSION 2

Key Takeaways

• Well entrenched multi segment chemical company with leading world

players as its customers

• One of the top 3 producers of fine intermediates

• New products / markets opportunities driving growth

• Post implementation at Dahej, DNL would be only fully integrated company globally, producing end products from building blocks.

• Strong Financials – Low gearing & track record of dividends

Thank you

More information available online: • Annual Reports

• Quarterly Financial Results

• 5 Years Financial Data & more

http://www.deepaknitrite.com/