#1RITES THE INFRASTRUCTURE PEOPLE Investor Presentation Financial Results: FY21 & Q4FY21 Date: 16th June 2021#2Safe Harbor This presentation report is for distribution purpose only under such circumstances as may be permitted by applicable law. This presentation is for information purposes only without regard to specific objectives, financial situations or needs of any particular persons and does not constitute an offer, solicitation, invitation to offer or advertisement with respect to the purchase or sale of any securities of RITES Limited in any jurisdiction and no part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation is not a complete description of the Company. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, except with respect to information concerning RITES's past performance, its subsidiaries and affiliates, nor is it intended to be a complete statement or summary of the future proposals, strategies and projections referred to in the report. RITES shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from this presentation report. This presentation may contain certain forward-looking statements relating to the Company's future business, developments and economic performance. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general Financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, etc. which could cause actual developments and results to differ materially from the statements made in this presentation. RITES reserves the right to alter, modify or otherwise change the presentation without notifying any person of such changes or revision. RITES assumes no obligation to update or keep current the information contained herein. whether as a result of new information, future events or otherwise 2#3Content •Round-up of FY21 4 Financial Performance 6 Order Book 19 Outlook 22 For more details on financial results, please visit our website www.rites.com or click link below RITES Financial Statements#4Round-Up Financial Year 2020-21#5Round-up of Year FY21 - FRITES Focus on execution resulted in Q4FY21 operating revenue go up 12% and Profit by 2.4% FY21 consolidated revenue stands at 2005 crore against ₹2735 crore in FY20 due to weak first 3 quarters Order book as on 31st March 2021 stands at ₹6277 crore Export of Cape Gauge rolling stock started to Mozambique; remaining orders under manufacturing Secured PMC work of Orbital Rail Network in Haryana Secured one airport and two Integrated Check Posts works in Nepal Completion of all electrification ongoing works of IR with RITES Capacity enhancement work at Indian Railways Bikaner workshop completed Completed four railways siding works for PSUs Final Dividend of ₹4 per share in addition to interim dividends of 5 and 4 per share 5#6Financial Performance Q4FY21 and FY21#7Emerging from Pandemic - Q4FY21 > Revenue crossed pre-covid levels in Q4FY21 YoY quarterly operating revenue up by 12% > QoQ operating revenue up by 42.7% in Q4FY21 Gauge Rolling Stock Exports to Cape Mozambique begins 434 422 322 Q1FY21 Q2FY21 Q3FY21 619 Q4FY21 Standalone operating revenue in Crore 7#8Q4FY21 at a Glance (Standalone) 12.0% 619 553 6.1% 632 596 Operating Revenue Total Revenue 17.3% -2.1% 172 177 173 147 2.4% 131 135 Q4FY20 ■Q4FY21 Margins 27.8% 27.5% 21.3% 26.6% 29.8% 22.0% EBITDA PBT PAT - Revenues gaining traction; reaching pre-covid levels with growth in consultancy, exports and turnkey - Slight decrease in PBT due to lesser other income - Operational margins sustained on account of better margins in exports, leasing and turnkey *EBITDA = PBT + Interest + Depreciation + Amortization - Other Income in Crore 8#9Segmental Analysis (Revenue - Q4FY21) Q4FY21 Q4FY20 301 29 91 198 Revenue +2.8% -6.2% 54.5% 16.4% 293 31 59 170 Consultancy Leasing Exports Turnkey - Growth in Consultancy, Exports and Turnkey, execution reaching towards the pre-covid levels - Revenue spills over to FY22 for exports and turnkey - Less procurement by clients impacted the Quality Assurance business in Crore 9#10Segmental Analysis (Profits - Q4FY21) in Crore Profit Margins 40.4% 38.4% 27.6% 4.1 Q4FY21 121 11 25 8 Profits -13.9% +6.3% +169% +43.5% Q4FY20 141 10 9 6 Consultancy Leasing Exports Turnkey Profit Margins 48.2% 33.9% 15.8% 3.3% Overall Margins sustained due to execution pick up with easing of restrictions and effective cost control measures Decrease in consultancy margins due to less quality assurance income & certain projects milestone were not reached *Profit Margins don't include un-allocable expenses & finance cost 10#11Performance During FY21 2474 -24.8% 1860 Operating Revenue Consolidated 2735 -26.7% 2005 Total Revenue FY20 ■FY21 2401 -25.1% 1797 Standalone 2665 -26.9% 1947 Operating Revenue Total Revenue -Decrease in operating revenue is mainly due to . Decrease in Export by Rs. 448 crore, excluding exports, the decrease in standalone operating revenue is 8.4% • Disruptions in supply chain and restrictions imposed due to pandemic - 30 coaches at port ready for shipment on 31st March due to non-availability of ship in FOB export contract - Consolidated other income decrease by 44.1% mainly due to one time settlement of Rs. 91 crore during FY20 in Crore 11#12Profits with Sustained Margins Consolidated in Crore 874 -32.2% 668 -24.5% 505 633 -29.9% 593 602 -23.6% 460 444 FY20 Standalone 823 -31.6% 596 7562 -28.8% 424 FY21 25.6% 28.9% 21.8% 27.2% 29.6% 22.2% Margins 25.1% 30.9% 22.4% 27.0% 32.0% 23.2% EBITDA PBT PAT EBITDA PBT PAT - Operational margins sustained despite decrease in revenue with the help of cost reduction measures - Decrease in profits is mainly attributable to less revenue due to pandemic-induced restrictions & supply chain disruptions and Rs. 114 crore decrease in other income. *EBITDA = PBT + Interest + Depreciation + Amortization - Other Income 12#13Segmental Growth (Standalone) Profit Margins* 44.2% 35.6% 19.0% 3.8 in Crore FY21 972 108 93 624 150 Revenue -8.8% 10.3% - 82.8% - 7.3% - 43.2% FY20 1066 121 541 673 264 Consultancy Lease Exports Turnkey Other Income Profit Margins* 44.9% 38.6% 22.7% 3.4% - Margins sustained in consultancy and turnkey due to timely cost-control measures - Export margins moderated due to lower exports - Leasing margins moderated due to reduced requirements of Locos in H1 and depreciation on locos *Profit Margins don't include un-allocable expenses & finance cost 13#14REMC Ltd Performance 81 -15.1% 69 Total Revenue -5.3% 20 19 Total Revenue in Crore -31.5% 58 .-30.8% 50 44 -31.1% Financial Year 34 35 FY20 24 ■FY21 4th Quarter EBITDA PBT PAT -17.7% 16 -22.3% 13 14 -22.4% 11 10 Q4FY20 8 ■Q4FY21 EBITDA PBT PAT - Consultancy revenue impacted due to less traction power requirement during lockdown - Power generation quarterly revenue up by 86% to 3.2 Cr and yearly revenue up by 46.9% to 16.5 Cr * EBITDA = PBT + Interest + Depreciation + Amortization - Other Income 14#15Trade Receivable in Days (Standalone) 116 105 97 113 101 FY17 FY18 FY19 FY20 FY21 Debtor days improved over last year and remained within the guided range * Debtor days are net of provisions 15#16Value Generation for Investors (Standalone) Networth (in Crore) EPS (*) 2577 23.86 2384 2199 2322 -27.8% 2035 17.22 FY17 FY 18 FY19 FY20 FY21 FY20 FY21 - Decrease in Net worth is due to return of ₹257 crore of surplus cash to shareholder through Buy Back and *60 crore of taxes thereon 16#17Dividend Apportioned* Dividend Payout Ratio: 73.6% for FY21 on 12 months PAT (including final dividend for FY21) 400 312 150 255 Final 96 2nd Interim 80 100 1st Interim 96 133 110 80 78 40 150 120 95 70 55 FY17 FY18 FY19 FY20 FY21 in Crore - 96.12 crore (₹ 4 per share) of Final dividend for FY21 has been recommended and will be paid in FY22, subject to approval of shareholders *The above numbers are based on dividends declared for relevant years and not on the year of payment basis 17#18Employee Productivity да Continuous rationalization of manpower to improve productivity REVENUE PER EMPLOYEE (STANDALONE) 0.82 0.65 0.66 Hv FY21 Profit before Tax per employee stands at Rs. 19 lakh (Rs. 27 Lakh in FY20) 0.47 0.49 Ω Senior Management with an avg. experience of 33+ years Experts in Engineering, Science, Finance, ## Economics etc. with a mix of regular, deputationists and contract employees FY17 FY18 FY19 FY20 FY21 No. of Employees Status 31.03.2020 31.03.2021 Regular 1970 1919 Approx 1,400 regular skilled engineers/ professionals Deputation 161 132 Contract 1105 919 Total 3236 2970 in Crore 18#19دوم 0330 CHI D 330 Order Book#20Order Book REMCL 1% Turnkey Projects Order Book (as on 31.03.2021) Rs. 6277 Crore 35% Consultancy Rs. 2525 Crore Exports Rs. 1333 Crore Lease Rs. 123 Crore Rs. 2216 Crore Turnkey* REMC Ltd Rs. 80 Crore Exports 21% Others 29% Consultancy 40% Lease Rental 2% * Order book also includes US Dollar denominated projects and conversion to INR of such projects has been done at the time of award of the contract * REMCL's orders book is annualised based on the last quarter's procurement contracts and wind power generation and keeping in mind the Covid Impact * Does not include Rs. 1700 crore of electrification projects where RITES has emerged L1. Govt & PSU 71% 20#21Leasing Consultancy Turnkey Major Projects Secured during Q4FY21 RITES secured more than 250 projects/contracts including enhanced scope during FY21. Project Scope Establishment & Maintenance of Continuously Operating Reference Station Network for Mumbai-Ahmedabad High Speed Rail in Crore Amount Client Expected Completion 67.11 National High Speech Rail Corporation 2027 Replacement of Mechanical Signal (Signaling Works) 67.25 Northern Railways 2022 Project Management Consultancy for KIIFB projects in transport sector Kerala Infrastructure 61.25 2024 Investment Fund Board Haryana Rail Infrastructure General Consultancy for Haryana Orbital Rail Corridor 38.65 2027 Development Corp. Ltd. Project Management Consultancy for doubling between Yeshwanthpur-Channasandra & Baiyappanahalli-Hosur Technical services for reconstruction of Vivekananda road flyover, Kolkata 13.77 K-RIDE 2023 10.25 Kolkata Metropolitan Development Authority 2021 Leasing of 3 locomotives 13.75 Steel Authority of India Ltd 2023 21#22Outlook FY2021-22#23Covid-19 Response D ADVANCE LIFE SUPPORT AMBULANCE Vaccination Drive & Reimbursement of Covid-related expenses Free vaccination for employees & their dependents; reimbursement of Covid-related expenses Isolation Facility for Asymptomatic & Mildly Covid-19 positive Isolation facility equipped with 1st-line medical assistance has been set up for employees who are asymptomatic or mildly Covid+. Also, they can get e-consultation with empanelled doctors Distribution of PPE Kits & Masks and Weekly Intensive sanitisation Distributing face masks, face shields and PPE kits among the employees. And roped in CWC to conduct weekly intensive sanitisation of RITES offices across the country Essential services Continuously providing services to clients associated with essential sectors while taking extra precautions such as proper hygiene, sanitisation and social distancing at workplace Social Media Outreach RITES is using its social media handles to generate awareness among the public and bust myths and misinformation 23#24Business Outlook 01 Impact on earnings and profits of FY21 due to Covid 01 Exports and Turnkey revenue spill over to FY22 02 Adequate order book for execution for 2-3 years 02 03 Pick-up in tendering activities 04 of Infrastructure projects Pandemic resurgence in many countries is a cause of concern 03 04 05 National Rail Plan & National Infrastructure Pipeline to provide 05 Focus on execution while maintaining margins Order inflow picked up, further consolidation in order book expected 2nd Wave in India impacted business but now tempering down Strategic focus on international projects, exports and domestic mega projects definitive direction 24#25Thank You For more details on financial results, please visit our website www.rites.com or click link below RITES | Financial Statements