#1Welspun Corp Ltd Investor Presentation - July 2020 ✓ WELSPUN CORP PIPES AND PLATES World's Leading Line Pipe Manufacturer#2SAFE HARBOUR WELSPUN CORP PIPES AND PLATES This presentation and the accompanying slides (the "Presentation"), which have been prepared by Welspun Corp Limited (the "Company" or "WCL"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ 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, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.#3WELSPUN CORP PIPES AND PLATES While the world is striving to combat COVID19, we as a responsible organization are standing in solidarity and ensuring safety and wellbeing of our extended family of 100,000+ 473 Welspun is leaving no stone unturned in lending support and assistance to the government, society, communities, customers and employees in this hour of crisis LIVE THE LAST FRONTIER Fighting COVID 19 TOGETHER#4✓ WELSPUN CORP PIPES AND PLATES COVID-19 IMPACT MACRO ECONOMIC FACTORS - Oil Prices IMMEDIATE AFTERMATH Remained depressed because of lower demand Practically all bids and new orders postponed Economy faced Liquidity crunch Falls to all-time low of 76.97 Global Bids Liquidity USDINR Supply chain disruptions. Logistics Plants & Offices Order Book Complete shutdown from late March till Mid April One each large order from Australia & USA got deferred CURRENT SITUATION Recovering with improved demand & supply cuts. Seeing improved traction in new bids and orders Improved with RBI liquidity measures Currently around 75 levels. Supply chain gradually. improving Plants operational from mid April 2020. Recently won a large order in USA for 90KMT#5✓ WELSPUN CORP COVID-19 COMPANY ACTION PLAN People Cash Customer Production & Supply Chain . . PIPES AND PLATES WFH for HO location. Other plants completely operational. Task force created & responsibilities assigned for each important function. Extensive training imparted to enhance skill set ( > 100 webinars). • Availability of medical staff round the clock at our key locations Comfortable liquidity position • Sharp focus on collections. • Complete check on payments. • • Cost optimization measures enforced. Significant capex reduction. • . Benefits from government stimulus packages Current order book provides 2-3 quarters visibility. All PSU projects on fast track mode. In consultation with EPCs for securing major water projects. Force majeure letters sent where necessary Resumed operations with revised SOPs & policies for safety & security in second fortnight of April in India. KSA plant operational from 7th June. Flawless start up due to high level of maintenance during lockdown Logistics substantially picked up helping in revenue recognition#6✓ WELSPUN CORP PIPES AND PLATES Q1 FY21 AT A GLANCE - 目 694 KMT Order Book; Valued at US $ 734 mn 198 cr Net CashFrom Net Debt of INR 32 Crs (March FY20) 197 cr EBITDA 279 Crs [Q] 58 cr 10,100 / US $135 Free Cash Flow Profit After Tax Op EBITDA / Ton 130 KMT Production 222 KMT Sales 1.8 mn MT Active Bids; Future Outlook Note: Pipe Sales & Production volumes, Order Book and Future Bids include Saudi Arabia operations; All other figures pertain to IND-AS continuing operations#7ORDERBOOK - QUARTERLY TREND (Figures in KMT) ✓ WELSPUN CORP PIPES AND PLATES Order Book Valued at USD 0.73 Billion 1,721 1,712 1,656 1,564 1,357 1,305 706 694 423 425 428 339 319 337 418 222 369 376 304 274 171 (181) 210 130 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Closing Order Book Order Booked -Orders Executed Decent order book in spite of challenging macro environment Note: Order Book includes Saudi Arabia operations#8ORDERBOOK - YEARLY TREND (Figures in KMT) W WELSPUN CORP PIPES AND PLATES 913 601 1,657 1,712 706 694 FY16 FY17 FY18 FY19 FY20 Q1 FY21 ■Closing Order Book Decent order book in spite of challenging macro environment Note: Order Book includes Saudi Arabia operations#9P&L - QUARTERLY Sales Volume (KMT) 304 369 339 337 319 ill 428 418 ✓ WELSPUN CORP PIPES AND PLATES Operating EBITDA (Rs. Mn) 3,712 3,359 3,169 2,494 2,658 2,585 2,075 222 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 1,827 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Operating EBITDA / Ton Profit After Tax (Rs. Mn) 2,342 1,733 1,256 833 571 1,404 578 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Rs. 2,185 mn MTM loss on (Rs.) 9,600 9,100 7,900 14,300 14,300 11,900 11,700 10,100 illi Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 -1,249 bonds Note: Pipe Sales volumes includes Saudi Arabia operations; All other figures pertain to IND-AS continuing operations#10KEY METRICS - YEARLY Earnings Per Share (Rs.) 1.0 6.0 12.3 ✓ WELSPUN CORP PIPES AND PLATES 25.6 11,065 * FY18 FY19 FY20 FY17 FY17 Return on Equity (%) 0.9% 5.6% 11.7% 23.7% 4,216 Net Debt (Rs. mn) 2,856 322 FY19 FY20 FY18 Return on Capital Employed (%) 8.8% 6.4% 22.6% 32.1% FY17 FY18 * FY19* * FY20 FY17 FY18 FY19 FY20 Note: Prior period figures are restated wherever necessary; All numbers of this sheet are based on IND-AS disclosures; FY19 onwards figures pertain to continuing operations (Pipes) only *FY19 EPS & ROE and FY20 ROE figures are adjusted for Rs 2,578 mn MTM loss on bonds and Rs 377 mn respectively#111,010 1,018 1,022 1,019 VOLUME - YEARLY TREND Production and Sales in KMT - Pipes (including Saudi JV) 1,130 1,152 1,119 1,100 FY13 FY14 FY15 FY16 FY17 FY18 954 935 Achieved all time high Production and Sales volume in FY2020 Pipe Production ■Pipe Sales FY19 1,020 1,084 FY 20 1,252 1,279 ✓ WELSPUN CORP PIPES AND PLATES 1,629 1,502#12RESULTS Note: ✓ WELSPUN CORP PIPES AND PLATES Particulars (Rs Mn) Q1 FY21 Q4 FY20 QoQ Q1 FY20 YOY FY20 FY19 YOY Pipe Sales Volume (KMT) 222 418 -46.9% 319 -30.4% 1,502 1,279 17.4% Revenue 20,693 27,589 -25.0% 20,471 1.1% 99,568 89,535 11.2% Operating EBITDA 1,827 3,359 -45.6% 2,585 -29.3% 12,839 8,966 43.2% EBITDA 1,968 3,182 -38.2% 2,416 -18.5% 12,759 7,077 80.3% Depreciation 534 587 -9.0% 545 -1.9% 2,333 2,597 -10.2% Finance cost 281 362 -22.3% 395 -28.8% 1,440 1,774 -18.8% Profit before tax and share of JV 1,153 2,234 -48.4% 1,476 -21.9% 8,985 2,706 232.0% Tax 782 1,637 -52.2% 384 103.9% 4,125 1,223 237.4% Non Controlling Interest (20) (89) -77.1% (5) 283.0% (186) 84 Share of profit/(loss) from associates & JVs 228 896 -74.5% 169 35.4% 2,060 (885) PAT after Minorities & JVs 578 1,404 -58.8% 1,256 -54.0% 6,735 682 887.0% EPS 2.2 5.4 -58.6% 4.7 -53.0% 25.6 2.6 893.6% Prior period figures have been restated, wherever necessary Figures are pertaining to continuing operations only (Pipes)#13WAY FORWARD ✓ WELSPUN CORP PIPES AND PLATES A Strengthening Business Moat through: • · Automation & Digitisation Talent development Quality control Introduce niche product basket Converting adversity into opportunity: • Leaner cost structure Leveraging strength of Balance Sheet, Human Capital, Customer Relationships & Technical know-how Evaluating niche businesses available at deep discount Extracting maximum value from Assets: Pipe business - Maximizing Asset Utilisation. • Divestment of non-core businesses - Asset Light Approach Leaner Balance Sheet: • Sharp reduction in Gross Debt Focus on FCF: Optimizing capex and working capital . Efficient utilization of cash#14✓ WELSPUN CORP PIPES AND PLATES BUSINESS MOAT Global Leadership Among Top 3 Line Pipe Manufacturers globally Accreditations Approvals: 50+ O&G majors; Qualifies for global bidding Expertise Executed critical & complex projects worldwide Customer Centricity Delivered 14+ mn MT Pipes with multiple repeat orders Supplier Relationship Long term association with global Steel & other vendors Innovation Patented technology leading to higher productivity Global but Local Domestic presence in key demand areas: USA|KSA|India One-Stop Shop Steel sourcing to ROW / Laying Site - Managing complete SCM ESG Independent Board | Focus on Diversity, CSR & Sustainability Note: KSA: Kingdom of Saudi Arabia | ROW: Right of Way .888 ........#15WELSPUN CORP PIPES AND PLATES AWARDS & ACCOLADES - TESTIMONY TO EXCELLENCE Bechtel Supplier Excellence Award (2018-19) BECHTEL OHS category in engineering sector: Anjar (2018) 2nd Annual EXCEED Golden Peacock National Quality Award: Anjar (2017) By The Martin Luther King Jr Commission of AR (2017) -ARKANSAS. Supply chain Excellence Best energy practices Golden Peacock Award SINCE MARTIN 1993 LUTHER KING, JR. COMMISSION Salute to Greatness Award 2017 CII National 5S Excellence International Safety Award Anjar (2016) Quality Systems Excellence Award for Manufacturing (Large Size Category) (2016) FICCI Vipul Mathur Hall of Fame Steel CEO of the year (2018) SUFI Steel Users Federation of India award (2018) CII Confederation of Indian Industry BRITISH SAFETY COUNCIL CEO of the Year "Gold Award" Anjar pipes International Safety Award With merit Excellence Award First Prize and many more....#16WELSPUN CORP PIPES AND PLATES ESTABLISHED RELATIONSHIP WITH GLOBAL GIANTS BR PETROBRAS GASCO Reliance Industries Limited Oil & gas TOTAL Chevron Transportation TC Energy गेल stearatett KINDER MORGAN Enterprise Products William's ConocoPhillips P ONGC ExxonMobil GAIL bp British Gas PLAINS ALL AMERICAN PIPELINE, L.P. eni BECHTEL Others FLUOR Agip 5 SAIPEM ارامكو السموم M M.O.G.E Statoil PTTEP इंडियन ऑयल PERU LNG Saudi Aramco GEAZPROM IndianOil CPOC Qatar Petroleum قطر للبترول ENERGY TRANSFER NG ODEBRECHT KVERNER Energy Partners LP Dow CENBRIDGE المؤسسة العامة لتحلية المياه المالحة Saline Water Conversion Corporation Approvals & accreditations from marquee customers across the globe Acts as an Entry Barrier#17WELSPUN CORP PIPES AND PLATES EXPERIENCED BOARD AND MANAGEMENT Board of Directors B.K.Goenka, Non-Executive Chairman & Promoter Director • Amongst India's most dynamic businessmen ⚫ Past President ASSOCHAM (2019) Recipient of Asian Business Leadership (ABLF) Award, 2019 Rajesh Mandawewala, Promoter Director • Qualified Chartered Accountant; Played an instrumental role in establishing Welspun's Textile & Pipe business Leading new strategic initiatives of the Group Authorization of investment decisions for Welspun Amita Misra - Non Executive Independent Director • Ex-IAS with 38+ years of experience in various government & international organizations. Area of specialization: Audit, Financial Management, Procurement, Industrial and Development Projects involving International Cooperation & Governance Desh Raj Dogra - Non Executive Independent Director Retired Managing Director & CEO of Credit Analysis and Research Limited. MBA, CAIIB with over 38 years of experience in banking and credit rating. K. H. Viswanathan - Non Executive Independent Director Qualified cost and works accountant with over 34 years of experience Expert in Audit, Tax & Legal, Structuring, Business Strategy, M&A Raj Kumar Jain - Non Executive Independent Director ° Qualified Chartered Accountant with over 30 years of experience Advisor to companies in the matters relating to accounts and internal control. Revathy Ashok - Non Executive Independent Director • Gold medalist from IIM, Bangalore and Member of Indian Angel Network. Independent consulting practice, working with mid and early stage companies, helping them scale ⚫ Former MD of Tishman Speyer Private Equity and Global CFO of Syntel Inc Management Team Vipul Mathur, Managing Director & CEO, Member of Board Well-known figure in the global pipe industry; Associated with Welspun since 2001 Led the company to historic high order book & profitability Recipient of Hall of Fame Steel CEO of the year (2018) by SUFI Percy Birdy, Chief Financial Officer • Member of ICAI and ICWAI with 25+ years of experience in the areas of Corporate Finance & Accounting, Costing, Budgeting, Direct & Indirect Tax, Banking, etc. • Has previously worked with Allanasons Group, Glenmark, Essel Propack Godfrey John, Business Head - INDIA /APAC/MENA & EUROPE ° 25+ years of experience in the industry. Expertise in pipes across applications such as Oil & Gas, Water, Ports and Terminals as well as structural pipes Rusty Fisher, SVP -Sales and Marketing (USA) ° ° • 33+ years of experience in the industry Has previously worked with Tubular Synergy Group, US Steel, Lone Star Served as Chairman, Line Pipe Manufacturers Group (National Association of Pipe Coating Applicators) Hisham Abdullatif Mohammed Allhmil, CEO (Middle East) Well-known figure in the Saudi steel and pipe industry Previously worked with esteemed organizations in Saudi Arabia such as Saudi Steel Pipe, SABIC, Saudi Iron and Steel Co. (HADEED) T.S. Kathayat, President & Chief - Corporate Quality & Technical Services • • 23+ years of Work Experience in the manufacturing Industry Conferred with "Quality leadership Award" and "Corporate Excellence Leader of the Year "by World Quality Congress ---------#18THANK YOU WELSPUN CORP PIPES AND PLATES Welspun Corp Limited CIN: L27100GJ1995PLC025609 www.welspuncorp.com For further information, please contact: Mr. Gaurav Ajjan [email protected]