20.10.

2022

To,

BSE Limited National Stock Exchange of India Limited

Phiroze JeeJeebhoy Towers, Exchange Plaza, Plot no. C/1,
Dalal Street, G Block, Bandra-Kurla Complex
Fort, Mumbai – 400 001 Bandra (E),
Scrip Code: 543318 Mumbai - 400 051
Trading Symbol: CLEAN

Dear Sir/Madam,

Subject: Investor Presentation.

In accordance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, please find enclosed Financial Results presentation for quarter and
half year ended 30th September, 2022.

The aforesaid presentation is also available on the Company’s website.

You are requested to take the same on record.

Thanking You.

For Clean Science and Technology Limited

Digitally signed
MAHESH by MAHESH
ARVIND ARVIND
KULKARNI
KULKARNI Date: 2022.10.20
15:49:00 +05'30'

Mahesh Kulkarni
Company Secretary

Encl: As above
Clean Science and
Technology Ltd.
Investor Presentation

Q2 FY2023 I October 2022

SAFE HARBOUR

This investor presentation has been prepared by Clean Science and Technology Limited (“CSTL”) and does not constitute
a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other
documentation or information (or any part thereof) delivered or supplied, should not be deemed to constitute an offer.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness,
accuracy, completeness or correctness of such information or opinions contained herein. The information contained in
this presentation is only current as of its date. Certain statements made in this presentation may not be based on
historical information or facts and may be “forward-looking statements”, including those relating to the general business
plans and strategy of Clean Science and Technology, its future financial condition and growth prospects, future
developments in its industry and its competitive and regulatory environment, and statements which contain words or
phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, among many others, or similar
expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties
and other factors that could cause actual results, opportunities and growth potential to differ materially from those
suggested by the forward-looking statements.
Clean Science and Technology Limited may alter, modify, or otherwise change in any manner, the content of this
presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and
disseminated in any manner.

2
Q2 FY 2023 & H1 FY 2023
Update
Q2 FY23 UPDATE
Revenue growth intact; EBITDA margins stabilized on Q-o-Q basis but input prices continue to remain volatile

2x revenue over last 2 years

113 140 125 134 146 153 181 205 234 248

Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23

50.40% 50.60% 50.30% 52.90% 49.30%

45.30%
42.70% 41.30% 39.40% 39.80%

39.40% 37.90%
35.50% 35.10%
31.70%
26.90% 29.20%
25.00% 24.30%
21.60%

9.90% 10.00% 10.90% 10.60%

6.30% 6.90% 6.80% 7.50% 8.20% 7.90%
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23
EBITDA % RM costs % P&F costs %

CAPEX/INVESTMENT  Incurred total cash capex of ~ Rs. 62 crores during H1 FY23

UPDATE  Investment in subsidiary of Rs. 65 crores during H1 FY23
Note: RM - raw material; P&F – power & fuel 4
Q2 FY23 and H1 FY23 P&L OVERVIEW
Sustained revenue growth and meaningful profitability margins; input prices continue to remain short term concern

P&L (INR Crore) Q2 FY 2023 Q1 FY 2023 Q-o-Q (%) Q2 FY 2022 Y-o-Y (%) H1 FY 2023 H1 FY 2022 Y-o-Y (%)

Sale of products 245.0 232.0 6% 151.7 62% 477.0 296.3 61%

Other operating income 2.5 2.1 1.5 4.6 3.2

Total Revenue 247.5 234.1 6% 153.2 62% 481.6 299.5 61%

Raw material expenses 92.7 91.3 2% 48.0 93% 184.1 90.2 104%

Raw material % 37.9% 39.4% 31.7% 38.6% 30.4%

Other operating expenses 57.2 51.4 11% 36.4 57% 108.6 69.2 57%

EBITDA 97.5 91.3 7% 68.7 42% 188.9 140.1 35%

EBITDA % 39.8% 39.4% 45.3% 39.6% 47.3%

Depreciation expenses 8.7 8.5 3% 6.1 42% 17.1 11.9 44%

Other Income * 3.1 10.9 8.6 14.0 15.1

Profit before tax (PBT) 91.9 93.8 (2)% 71.2 29% 185.7 143.3 30%
PBT % 37.5% 40.4% 47.0% 38.9% 48.4%

Profit after tax (PAT) 68.3 70.5 (3)% 53.5 28% 138.7 108.1 28%
PAT% 27.9% 30.4% 35.3% 29.1% 36.5%

Note: * Other Income related to CFCL of INR 0.7 Cr and INR 9.4 Cr in Q2 FY23 and Q1 FY23 respectively 5
H1 FY 2023: BALANCE SHEET SUMMARY
Debt free balance sheet with cash surplus of ~INR 235 Crores; strong return ratios

As at As at
In INR Crore
30-September-2022 31-March-2022
Assets
Non-current assets
Fixed Assets 323.7 292.3
Capital work-in-progress 41.8 44.1
Right of use asset 2.9 2.9
Other non-current assets 139.9 61.2
Total non-current assets 508.4 400.6 Key ratios H1 FY2023 FY 2022
Current assets
Inventories 100.3 88.1 Return on Net Worth 31.7% 29.7%
Investments 210.4 190.4
Trade receivables 164.9 153.5
Return on Capital Employed 54.8% 51.5%
Cash and bank balances 26.1 29.5
Other current assets 20.3 62.8
Total current assets 521.9 524.4
Total Assets 1,030.3 925.0 Net Fixed asset turnover (times) 2.9x 2.3x
Equity and Liabilities
Net-worth 874.2 768.9
Non-current liabilities Net working capital days 69 59
Borrowings 0.7 0.3
Provisions 0.1 0.1
Deferred tax liabilities (net) 18.5 20.9
Total non-current liabilities 19.3 21.3
Current liabilities
Trade payables 82.4 102.1
Other current liabilities 54.4 32.7
Total current liabilities 136.8 134.8
Total Equity and Liabilities 1,030.3 925.0
6
REVENUE PROFILE – H1 FY 2023
Strong revenue growth across all segments and geographies

REVENUE MIX BY SEGMENT (INR Cr.) REVENUE MIX BY GEOGRAPHY

319 217 97 41 53 33

6% 7%

15% 15%

35% 38%
H1 FY23 15% H1 FY22 15%

29% 25%
Performance Pharma & Agro FMCG
Chemicals Intermediates Chemicals

H1 FY 2023 H1 FY 2022 China India Europe Americas Row

Performance chemicals - Contributing 67% of revenues | Increased realizations

and volume growth across all products.
 Exports continue to be key growth driver
(Y-o-Y growth of 52%)
Pharma & Agro Intermediates - Contributing 20% of revenues | Increased
volume offtake across products I Strong growth in DCC and Guaiacol
 Continued de-risking of geographical revenue aided by new
customer additions

FMCG chemicals - Contributing 11% of revenues | Strong growth in 4-MAP

7
Corporate presentation
CLEAN SCIENCE AND TECHNOLOGY AT A GLANCE
A brief Introduction about the Company

 Among the few global organisations focused on developing ingenious technologies with unique, innovative, sustainable, and
cost-effective catalytic manufacturing processes

 Globally, among the largest manufacturers of certain chemicals developed in-house.

500+ Global 1,000+ Strong team 16+ Accreditation &

and domestic customers across Zero Debt Company
(10% women) Certifications
30+ countries

Sustainability and 3 manufacturing units with 70+ Scientists over

70% revenues from exports
ESG deeply ingrained in our 42,000 MTPA combined 4 R&D facilities
philosophy capacity

9
COMPANY EVOLUTION
Continuous R&D and Innovation has led to new product launches on a consistent basis

YEAR 2006 2009 2011 2014 2018 2020 2021 2022

REVENUES (INR Crore) - 1 19 120 241 419 512 685

 Commercialized plant to
 Commercialized manufacture P-BQ and TBHQ 2022
unique vapour phase
route to manufacture 2020
Anisole  Expanded capacity of
 Backward integration 2021 MEHQ, Guaiacol and BHA
for flagship products by 50%
 Commercialized unique
 Commercializing unique
 Technocrat Promoters technology to
technology to foray into
collaborated to develop manufacture DCC
HALS series
novel, clean and sustainable  Commercialized 2018
chemical processes unique catalytic
 Aligned to the philosophy, technology to 2014
Company was named as manufacture 4-MAP
Clean Science and
Technology  Commercialized
2009
unique catalytic
2011 forward
integration to
2006  Commercialized
manufacture BHA
unique catalytic
technology to
manufacture MEHQ
and Guaiacol

10
DIVERSIFIED PRODUCT PROFILE SERVING CRITICAL END-USER INDUSTRIES
Largest capacity in the world for our flagship products

PERFORMANCE PHARMA AND AGRO FMCG

CHEMICALS INTERMEDIATES CHEMICALS

MEHQ (Monomethyl Ether of Hydroquinone) Guaiacol 4-MAP (4-Methoxy Acetophenone)

 Used as polymerization inhibitor in acrylic acids,  Pre-cursor to manufacture APIs for cough syrup  Used in UV blocker in sunscreens (cosmetics
acrylic esters, super absorbent polymers (diapers (pharma industry) industry)
and sanitary pads)
 Key raw material to produce Vanillin
 Pre-cursor for agrochemical industry

1 in World & India 2 in World 1 in India 1 in World & India

BHA (Butylated Hydroxy Anisole)

 Used as anti-oxidant in food and feed industry
DCC (Dicyclohexyl Carbodiimide)
1 in World & India
 Used as reagent in anti-retroviral
Anisole
AP (Ascorbyl Palmitate)  Precursor to perfumes, insect pheromones,
2 in World 1 in India pharmaceuticals
 Used in infant food formulations, breakfast cereals
 Majority of Anisole produced is used for captive
and cosmetics
consumption
1 in World & India
p-BQ (Para Benzoquinone)

TBHQ (Tertiary Butyl Hydroquinone)  Intermediate in agrochemical industry 1 in World & India

 Stabilizer in oil industry

2 in World 1 in India
2 in World & India
11
KEY DIFFERENTIATORS THAT ADD VALUE
Unique benefits that set our business apart from competition

INNOVATION GLOBAL LEADERS PREFERRED PARTNER STATE-OF-THE-ART

Strategic process innovation Among the largest OF CHOICE Multiple, automated
and new product producers globally of Strong and long term manufacturing facilities with
development driven by a critical specialty chemicals relationships with a well zero liquid discharge and strong
strong with diversified diversified marquee customer focus on EHS
in-house R&D team applications base

PROMOTERS FORMULATION STATISTIC

Technocrat promoters Unique, innovative, Strong and
supported by an sustainable and cost- consistent
experienced workforce effective catalytic financial
with extensive domain manufacturing process performance
knowledge

12
STEADFAST FOCUS ON RESEARCH & DEVELOPMENT
Pioneered commercialization of catalytic reactions

Research and Development team’s focus areas

Enhance our existing catalyst Develop products with high demand

Expand product portfolio in the
1 systems to further optimize yield 2 performance chemical segment 3 which are produced by limited
and selectivity manufacturers globally

BACKED BY DIVERSE LED BY EXEMPLARY

COMPETENCY ACROSS
TECHNOLOGY R&D TEAM
~10+ CHEMISTRIES

Continuous flow reaction March 2018 September 2022

Hydroxylation Hydrogenation

Grignard Reaction Chlorination 1 PhD 7 PhD

Vapour phase reaction
Oxidation Polymeric Reaction 22 scientists 70 scientists
Tri-phasic reaction
Alkylation Esterification
4 independent R&D
Fixed bed reaction labs with pilot facility
Catalysis Halogenation

13
COHESIVE AND TECHNOCRAT PROMOTERS
Strong visibility on longevity of Promoters’ engagement in the business

Over 25 years of work experience in Over 15 years of experience in the

the chemical industry. chemical industry.

Previously worked as an Executive

Director at Mangalam Drugs and Bachelor of Chemical Technology –
Organics Ltd. Institute of Chemical Technology,
Mumbai, India (formerly known as
Bachelor of Chemical Engineering – UDCT)
ASHOK BOOB Institute of Chemical Technology, SIDDHARTH SIKCHI Master of Science in Organic
Managing Director Mumbai, India (formerly known as Executive Director Chemistry – University of Manitoba,
Key functions: Projects, UDCT) Key functions: Canada.
Manufacturing Capabilities Marketing, R&D

Over 20 years of expertise in the Over 5 years of work experience in

chemical industry. the chemical industry.
Previously, worked as an Director at
Mangalam Drugs and Organics Ltd. Bachelor of Chemical Engineering –
Pune University, India
Bachelor of Pharmacy – University of
KRISHNA BOOB PARTH MAHESHWARI MBA – Babson College, USA
Mumbai, India
Executive Director President
Key functions: Public Key functions:
relations, Purchase Business operations

Promoters’ sole business interest remains Clean Science and Technology with 78.51% stake
14
ROBUST CORPORATE GOVERNANCE
Distinguished Board of Directors and reputed financial market participants underscore sound governance

PROFILE OF NON-EXECUTIVE, INDEPENDENT DIRECTORS ON THE BOARD

PRADEEP RATHI PROF. G. D. YADAV Sanjay Kothari

Chairman and Non-Executive Director Non-Executive, Independent Director Non-Executive, Non-Independent Director
B.Sc, M.S. (MIT, USA)
MBA (Columbia, USA)
B.Chem. Engineering, B.Com (University of Calcutta)
Ph.D Technology Member of ICAI and ICSI
Chairman – Sudarshan Chemicals

KEVAL DOSHI MADHU DUBHASHI

Non-Executive, Independent Director Non-Executive, Independent Director
B.Com. (University of Mumbai)
Member of ICAI
PG in Business Administration
Erstwhile Partner at Ernst & Young LLP (IIM Ahmedabad)

Balanced board ensures transparency and accountability

Highly experienced and

Mr. Pradeep Rathi, Prof. G. D. More than 1/3rd Board
diversified non-executive
Yadav, and Mr. Sanjay Kothari members are independent Separate Chairman &
directors, are also board
have been Board members for Non-executive directors form Managing Director
members of other reputed
over a decade majority of all committees
listed companies

15
CONTINUED COMMITMENT TOWARDS SUSTAINABILITY AND ESG
Sustainability and ESG initiatives are embedded in our long term growth strategy

ENVIRONMENT EMPATHY (E) SOCIAL RESPONSIBILITY (S) CORPORATE GOVERNANCE (G)

 Utilize resources efficiently, reduce waste  Total contribution towards CSR activities  Statutory auditors - Big 4 (BSR & Co.
and minimize emissions as part of our during last 3 years is INR 10.5 crore LLP)
sustainability commitment
 Health, safety and wellbeing of  Highly experienced, competent and
 We aim to plant more than 11,000 trees employees is integral part of all our balanced Board driving corporate ethics
over the next three years activities and values
 11 MW of solar capacity. Share of  Continual improvement in safety  Long term & short term ratings by
renewable energy in power consumption measures have resulted in zero CRISIL are A+(Positive) and A1+
at 55%. casualties till date respectively
 Reduced fresh water consumption by 14%  Our key initiatives include regular safety  No auditor qualification or
and GHG emissions (Scope 1/Scope 2) by audits, safety trainings and health re-statements of financial statements
7% over the last 3 years checkups among others till date

FOCUS ON SUSTAINABILITY FOCUS ON CSR ACTIVITIES FOCUS ON GOVERNANCE

GreenCo Together for Ecovadis

Certificate Sustainability Audit Nomination And Stakeholders
Environment Medical Committee Remuneration Relationship
Sustainability Relief Committee Committee

Healthcare Education Risk Management Corporate Social

Reduce Recycle Reuse Committee Responsibility Committee

16
ADVANCED MANUFACTURING FACILITIES DESIGNED BY IN-HOUSE ENGINEERING TEAM
3 independent functional units with dedicated lines for each product

UNIT 1
Nil plant closure notice
received from any
7 plants pollution control board
Total area – 30,000 sq.m

All Units are ISO 9001,

ISO 14001 and ISO 45001
certified
UNIT 2

4 plants
Total area – 23,337 sq.m
Sustainable processes
ensures zero liquid
discharge (ZLD) facility

 Multiple dedicated plants for key products. To that extent, each plant is immune to
UNIT 3 challenges in other plants

3 plants commercialized  Independent plants for catalysts

2 plants to commission by H2 FY23  Each unit has a separate R&D facility, warehouse, engineering and utility section
Total area – 40,343 sq.m
 Land acquired for Clean Fino-Chem (WOS), largest facility till date

17
STRONG FINANCIALS
Resilient performance demonstrated over business cycles maintaining a debt free balance sheet

REVENUE EBITDA & EBITDA% PAT & PAT%

CAGR of 30% EBITDA CAGR of 42% PAT CAGR of 47%

243 393 419 512 685 73 136 185 259 300 49 98 140 198 229
44% 33%
51% 39%
44%
33%
35%
20% 25%
30%

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

RoCE RoNW Net FA & Net FA turnover(x)

36.4% 50.8% 58.5% 73.9% 51.5% 26.0% 35.9% 40.8% 36.7% 29.7% 102 127 166 186 296

2.8x 2.3x
3.1x 2.5x
2.4x

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Note: RoCE = EBIT (ex. Other income)/capital employed (Gross FA + Working Capital); RoNW = PAT as % of net worth
Net Fixed Asset Turnover = Revenue from Operations/Net Fixed Assets; Net Fixed Assets include Property, plant and equipment, Right-of-use asset & Intangible Assets
(Nos. in INR crore)
18
KEY GROWTH LEVERS
Strategic initiatives and investments aimed at long term sustainable growth

FOCUS ON ESG SIGNIFICANT

ANDSUSTAINABILITY GREENFIELD CAPEX
Capitalise on our core philosophy Planned capex of Rs. 300 crore+
of clean and green chemistry to over next two years for
address opportunities arising from commercialising new series of
the shift in demand to sustainable products and increasing capacity
chemistry. OUR KEY of existing products

GROWTH
DRIVERS
STRENGTHEN IN INDIA ADD NEW
AND EXPAND GLOBALLY COMPETENCIES
Focus on import substitution Adding new chemistries and
opportunities in India and add new process technologies with
export customers across significant focus on high value
geographies products that limited
manufacturers produce globally

NEW PRODUCT DEVELOPMENT

Strategic investments towards developing products for new range of
speciality chemicals that find applications across diverse and fast
growing end user industries
19
 THANK YOU
For further information, please contact:
SWAPNIL MORAY
Investor Relations
Email: [email protected]

Clean Science and Technology Limited

Website: https://www.cleanscience.co.in/