#1LARSEN & TOUBRO Investor Presentation - Q2/H1 FY22 November 01, 2021#2Disclaimer This presentation contains certain forward looking statements concerning L&T'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 the target countries for exports, ability to attract and run retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. 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. EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES L&T Innovation Campus, Chennai LARSEN & TOUBRO 2#301 L&T Overview EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Dedicated Water Supply Project, Tamil Nadu LARSEN & TOUBRO 3#4L&T - At a Glance India's largest E&C company with interests in EPC Projects, Hi-Tech Manufacturing and Services. Revenues Credit Rating Market Capitalization A Professionally Managed Corporate Group OOÛ *1,360Bn FY 21 Group (approx. US$ 19Bn) ☆ CRISIL: AAA / Stable ICRA: AAA (Stable) (Larsen and Toubro Ltd) B * 2507Bn 27th Oct, 2021 (approx. US$ 33 Bn) (Larsen and Toubro Ltd) EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 4#5L&T - Shareholding Pattern Mutual Funds & Pvt. Insurance Cos., 16% Others, 6% Govt. Financial Institutions & Insurance Companies, 18% SURE OF LID MONTHIYE 30th Sep, 2021 L&T Employee Trust, 14% FII's & GDR, 24% Major Institutional Shareholders Life Insurance Corporation of India HDFC Mutual Fund % Shares 12.6% 2.4% GIC (Singapore) 2.4% Individuals, 22% Fidelity Investments 2.1% General Insurance Corporation of India 1.8% Note: Updated as at 30th Sep 2021 • • Listed with BSE & NSE GDRs listed with LSE and LuxSE L&T is one of the most widely held listed companies in India No promoter holding Uninterrupted Dividend payment record since 1946 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO#6Experienced Management Team A M Naik Group Chairman 2 S. N. Subrahmanyan Chief Executive Officer and Managing Director 3 R Shankar Raman Whole-time Director & Chief Financial Officer D. K. Sen Whole-time Director & Sr. Executive Vice President (Development Projects) 5 M. V. Satish Whole-time Director & Sr. Executive Vice President (Buildings) 6 J.D. Patil Whole-time Director & Sr. Executive Vice President (Defence & Smart Technologies) 7 Subramanian Sarma Whole-Time Director & Sr. Executive Vice President (Energy) 8 S.V. Desai Whole-Time Director & Sr. Executive Vice President (Civil Infrastructure) 9 T.Madhava Das Whole-Time Director & Sr. Executive Vice President (Utilities) BE [Mech] B.SC ENGG (CIVIL), MBA (Finance) B.Com, ACA, ACMA B.Tech (Hons), MBA (Finance) BE (Civil) Joined L&T in March 1965 Diverse and vast experience in general management, Technology and E&C Joined L&T in November 1984 Vast experience in Design & Build (D&B) Contracts, PPP Projects, Engineering and Construction Industry Joined L&T Group in Nov 1994 Joined L&T in 1989 Joined L&T in 1980 Vast experience in Finance, Taxation, Risk Management, Legal and Investor Relations Vast experience in Design & Engineering, Business Development, Tendering and construction Vast experience in Construction, Business Development, Contracts Management and Property Development in India and GCC region M.Tech- IIT, Mumbai Joined L&T in 1978 Vast experience in leading high technology interdisciplinary strategic programs across defence & aerospace sector Masters in Chemical Engineering from IIT Mumbai Joined L&T Group in 2015 Vast experience in managing large business portfolios in energy sector Masters in Civil Engineering Joined L&T Group in 1997 Vast experience in Heavy Civil and Infrastructure Space BE (Elec), NIT MBA- XIM, Bhubaneshwar Joined L&T Group in 1985 Vast Experience in managing and nurturing business portfolios of global utility projects especially in power transmission and distribution and renewables EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO#702 Business Overview WASH TOWER EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO#8Builders to the Nation Statue of Unity, Gujarat 330 MWp Solar PV project, MP 172 MLD Water Treatment Plant, Barmer Western Dedicated Freight Corridor Kempegowda International Airport FCC Reactor Regenerator Section, Paradip AIIMS, Bhubaneshwar Baha'i Temple, Delhi Mumbai High North Complex Island City Centre, Mumbai 3rd Narmada Bridge, Gujarat Srinagar Hydro Electric Plant Hydrocracker, HPCL Visakh Refinery Mumbai International Airport Automobile Factory in Gujarat Nagpur Smart City EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO#9International Footprint Sewage Treatment Plant, Qatar Hasbah II, Saudi Arabia Twin Towers, Dubai Marina Cryostat for ITER project 400 kV Ibri-Izki Transmission Line, Oman Light Rail Transit System, Mauritius Al Batinah Expressway Interchange, Oman 225 MW Combined Cycle Power Plant, Bangladesh 10 LTI's Delivery Centre, Johannesburg 375 MLD Sewage Treatment Plant, UAE Mohammad Al Ameen Mosque Oman Gathering Centre (GC 30), Kuwait Water Treatment Plant, Doha Al Wakrah Bypass Road Project, Qatar EPC Gas Project, Qatar Al Rayyan Stadium, Qatar EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO#10Fabrication & Construction Value creating Integrated Business Model IT, Engineering & Technology Services EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Design & Engineering EPC Projects Financial Services CProduct Realty & Infrastructure Development Hi Tech Manufacturing → LARSEN & TOUBRO#11E&C Delivery Platform One of Asia's largest vertically integrated E&C Companies EPC PROJECTS Design & Engineering Construction Manufacture & Fabrication ww Single point responsibility for turnkey solutions EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO#12Quality Customer Mix 31021 ओएनजीसी MAHAGENCO onGc य भाराराप्रा NHAI तद वय रक्षाम Indian Coastguard दिल्ली मेट्रो रेल कॉरपोरेशन लिमिटेड DELHI METRO RAIL CORPORATION LTD. MMRC NPCIL National एनटीपीसी Thermal NTPC Power Corporation Maharashtra State Power Generation Co. Ltd. GAR NVDA RMADA VALLEY DEVELOPMENT AUTHORITY (AN ORGANISATION OF GOVT. OF MADHYA PRADES ارامكو السعودية Saudi Aramco BR PETROBRAS أدنوك ADNOC هيئة كهرباء ومياه دبي شركة بترول أبوظبي الوطنية Dubai Electricity & Water Authority رير TAKREER شركة أبوظبي لتكرير النفط KAHRA EL MAA هيئة مياه وكهرباء أبوظبي Abu Dhabi Water & Electricity Authority شركة البترول الوطنية الكويتية (ترمرد) Dhaka Metro Rail ArRiyadh Development Authority EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES KNPC MMRDA Mumbai Metropolitan Region Development Authority www.mmrdomumbai.org PDO Petroleum Development Oman → LARSEN & TOUBRO#13Multiple Alliances & Joint Ventures IHI Alliances TOYO ENGINEERING CORPORATION ATOMSTROYEXPORT MCDE M Pre Qualifications A AREVA Eni Snamprogetti Stamicarbon ROLLS R Rolls-Royce ROYCE Technip MBDA ISHK NCY Joint Ventures MITSUBISHI POWER KBR Sargent & Lundy*** Hanwha Techuin PPARSONS ✓ sojitz Lurgi HALDOR TOPSOE H \CLYDE AKER KVÆRNER BERGEMANN Shell uop EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES CHIYODA Befula Investments SapuraCrest Petroleum Note: Some of these are project specific alliances & pre qualifications → LARSEN & TOUBRO#14Rewards and Recognitions 2107 TOP EPCONTRACTORS mint W3 CHAMPIONS 2021 Dr. C. Jayakumar Vice President & Head, Corporate Human Resources (CHROL Larsen & Toubro Limited (LAT) Future of Work Disruptor 2021 LARGE ENTERPRISE L&T Hydrocarbon Engineering was ranked as the 'Top EPC Contractor in the Middle East' by Oil & Gas Middle East magazine for 2021 L&T won the 'Future of Work Disruptor' award in the large enterprise category at the Mint W3 2021 Awards EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO#15L&T's Business Structure Business verticals Buildings & Factories Transportation Infrastructure Heavy Civil Infrastructure Water & Effluent Treatment Power T&D Power Heavy Engineering Defence Engineering LARSEN & TOUBRO Subsidiaries, JVs & Associates L&T Hydrocarbon Engineering* Financial Services IT & Technology Services Infrastructure SPVS (BOTS) Realty Development MHPS JVs (Boilers & Turbine MFG.) Other Manufacturing & Fabrication Subsidiaries Services and other Subsidiaries & Associates *Proposed to be merged with Larsen & Toubro Limited effective 1st April 2021 subject to necessary statutory and regulatory approvals including the approvals of the NCLT / other regulatory authority and the respective Shareholders and Lenders/Creditors of each of the companies. EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO#1603 Key Highlights EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Rishikesh-Karnaprayag Rail Link Package 2 LARSEN & TOUBRO 16#17Striking a balance between "Profitable Growth" & "Capital Employed" This far......and beyond. Delay in awards finalization despite robust tendering activity Focus on "profitable execution" and "cash generation" Order Book at near record high levels EBITDA margin improves on better overhead recovery despite commodity headwinds Strong tailwinds in IT & TS portfolio Improved ridership in Hyderabad Metro EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Return ratios being pursued rigorously Thrust on "Retaili-sation" of Financial Services book Divestment of Hydel Asset LARSEN & TOUBRO 17#18Key Financial Indicators (Amount in bn) % Var Q2 FY21 Q1 FY22 Q2 FY22 (y-o-y) % Var (q-o-q) % Var Particulars H1FY21 H1FY22 (y-o-y) 280 266 421 50% 59% Order Inflow 516 687 33% Order Book 2989 3305 11% 310 293 348 12% 19% Revenue 523 641 23% 10.7% 10.8% 11.5% EBITDA (%) 9.5% 11.2% 11 12 17 56% 47% Operational PAT 13 29 > 100% 55 12 18 -67% 55% Overall PAT 58 30 -49% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Particulars H1FY21 H1FY22 Net Working Capital 26.7% 22.0% RONW (TTM) (%)* 16.8% 11.8% *Includes gain on divestment of Discontinued (E&A) business LARSEN & TOUBRO 18#1904 Group Performance EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Project under construction in Colombo LARSEN & TOUBRO 19#20Q2/H1 FY22 Order Inflow/Order Book Q2 FY21 Q2 FY22 Order Inflow 50% 200 221 421 178 102 280 H1FY21 H1FY22 33% Order Book 11% (Amount in bn) 716 375 312 687 758 2989 3305 2273 2547 326 190 516 H1FY21 H1FY22 Domestic International • Q2 Order Inflows from Hydrocarbon, Infrastructure, Heavy Engineering, Realty and Industrial Machinery businesses Delay in awards finalization despite robust tendering activity • Strong prospects pipeline for H2 . Large and diversified order book provides multi-year revenue visibility EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 20#21Group Performance - Sales & Costs Q2 FY21 Q2 FY22 H1 H1 % Var Rs Billion % Var FY21 FY22 310.3 347.7 12% Revenue 522.9 641.1 23% 39% 35% International Rev. 41% 37% 175.1 197.4 13% MCO Exp.* 19.8 14.9 -25% Fin. Charge Opex** 267.4 40.9 60.8 72.5 19% Staff Costs 21.2 22.9 8% Sales & Admin. 277.0 307.8 11% Total Opex 351.8 32% 30.6 -25% 122.3 141.3 16% 42.8 45.7 7% 473.4 569.4 20% • • 33.3 39.9 20% EBITDA 49.6 71.7 45% • 10.7% 11.5% EBITDA % 9.5% 11.2% Projects & Manufacturing and IT&TS businesses drive revenue growth MCO expense variation is reflective of job progress, revenue mix and higher input costs Reduction in Finance Charge Opex is a function of reduced borrowing cost and lower average liabilities in FS business Resource augmentation in service businesses drives staff cost SG&A reflective of activity levels Improved overhead recovery contributes to EBITDA growth * Manufacturing, Construction and Operating expenses **Finance cost of financial services business and finance lease activity EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES ← LARSEN & TOUBRO 21#22Group Performance - Profit Parameters Q2 FY21 Q2 FY22 % Var Rs Billion H1 FY21 H1 FY22 % Var 33.3 39.9 20% (10.4) (7.8) -25% (7.1) (7.3) 2% EBITDA Fin. Cost Depreciation 5.6 5.3 -5% Other Income (6.8) (8.8) 31% Tax Expense (0.5) 0.0 JV/S&A PAT Share (3.0) (4.1) 36% Non-controlling Int. 11.1 17.2 56% Operational PAT 12.9 29.0 > 100% 49.6 71.7 45% (21.0) (16.1) -23% (13.9) (14.5) 4% 13.4 11.8 -12% (8.8) (16.0) 81% (1.5) (0.2) -84% (4.8) (7.7) 60% Finance cost commensurate with reduced level of borrowing at parent Other income reflective of level of treasury investments & yield earned during the quarter Share of JV / Associate PAT primarily comprises results of L&T IDPL and Power JVs NCI variation largely due to improved profitability of services portfolio Exceptionals (net of tax & NCI) represents : 81.5 Discontinued Operations 81.5 - (37.3) 1.0 Exceptionals (net of tax and NCI) a. Gain on divestment of stake in a Hydel power plant (36.2) 1.0 b. 55.2 18.2 -67% Reported PAT 58.2 29.9 -49% Tax expense on transfer of NxT digital business from Parent to Mindtree EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES ← LARSEN & TOUBRO 22#2305 Segment Performance Analysis EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES PM एम - Provided Critical subsystems for most of India's space missions → LARSEN & TOUBRO 23#24Segment Composition DON Infrastructure Power Heavy Engineering (HE) Process Plant Equipment Buildings & Factories (B&F) Transportation Infra (TI) Heavy Civil infra (HC) EPC-Coal & Gas Thermal Power Plant Construction Nuclear Power Plant Equipment Water & Effluent Treatment (WET) Electrostatic Piping Centre & Forgings Precipitator Power T&D (PT&D) Power Equipment Metall. & Mat. Handling (MMH) Mfg. * IT & TS Defence Engineering Defence Onshore Aerospace Offshore Shipbuilding Projects and Manufacturing Information Technology Technology Services Hydrocarbon Realty Others Industrial Products & Machinery Smart World & Comm. (SW&C) Financial Services Developmental Projects Rural Lending Housing Finance Wholesale Finance Asset Management Roads/Trans. Line * Metros Power Generation IT&TS, FS and Concessions EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES * Consolidated at PAT level → LARSEN & TOUBRO 24#25G wh= Order Inflow Composition Q2 FY22 Rs 421 Bn H1 FY22 Rs 687 Bn HE, 2%. Defence, 1% Power, 0.3% Hydrocarbon, 34% Services, 34% Services, 29% Others, 5% Infrastructure, 29% Middle East, 33% USA & Europe, 16% Power, 2% HE, 2% Defence, 1% Hydrocarbon, 23% Others, 4% Infrastructure, 34% Middle East, 23% USA & Europe, 19% Domestic, 48% Domestic, 55% ROW, 3% ROW, 3% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO 25#26G dh= Order Book Composition as on 30-Sep-21 Power, 4% HE, 1% Infrastructure, 74% Defence, 2% Hydrocarbon, 15% Domestic, 77% Others, 4% Order Book Rs 3305 Bn EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Middle East, 15% USA & Europe, 1% ROW, 7% → LARSEN & TOUBRO 26#27dh= B Revenue Composition Q2 FY22 Rs 348 Bn Power, 3% HE, 2% Services, 35% Defence, 2% Hydrocarbon, 14% Infrastructure, 40% Others, 4% Middle East, 9% USA & Europe, 20% ROW, 6% Domestic, 65% H1 FY22 Rs 641 Bn Services, 37% Power, 3% HE, 2% Defence, 2% Hydrocarbon, 14% Infrastructure, 38% Others, 4% Middle East, 9% USA & Europe, 21% Domestic, 63% ROW, 7% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO 27#28Infrastructure Segment Net Revenue 7% ↑ Net Revenue 26% ↑ 139.2 129.7 193.6 26.3 34.5 53.0 140.6 95.2 112.9 Q2 FY21 Q2 FY22 6.4% EBITDA Margin 8.3% ↑ Domestic H1 FY21 243.3 49.8 193.5 H1 FY22 6.3% EBITDA Margin 7.8% ↑ International • • Robust new order announcements and tendering activity; some delays in awards finalization Strong prospect pipeline in H2 "Calibrated execution" in line with cash inflows during Q2 Better job mix and improved overhead recovery aids margin despite commodity headwinds EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES (Amount in bn) → LARSEN & TOUBRO 28#29Power Segment Net Revenue 62% ↑ • 11.1 10.6 6.9 2.3 0.8 0.5 8.8 6.4 Q2 FY21 Q2 FY22 3.1% EBITDA Margin 2.7% ↓ Subdued ordering environment continues 9.8 Net Revenue 77% ↑ (Amount in bn) 18.7 2.5 16.2 H1 FY21 H1 FY22 2.4% EBITDA Margin 2.6% ↑ Domestic International Large opening order book drives healthy execution Margin reflective of stage of execution and under recoveries • Profits of Boiler, Turbine & other JV companies are consolidated at PAT level under equity method EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 29#30Heavy Engineering Segment Net Revenue 4% ↑ • 6.0 6.2 9.8 Net Revenue 20% ↑ 11.7 (Amount in bn) 2.7 3.8 3.6 5.6 6.1 6.0 2.4 3.5 Q2 FY21 Q2 FY22 5.1% EBITDA Margin 15.7% ↑ H1 FY21 H1 FY22 9.9% EBITDA Margin 16.7% Domestic International Multiple order wins in Refinery, Oil & Gas vertical Job specific challenges & slower execution impacts revenue in Q2 PY margin were impacted by a one-time warranty provision. EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 30#31Defence Engineering Segment Net Revenue 10% ↑ Net Revenue 24% ↑ 7.6 8.4 12.4 15.3 (Amount in bn) 1.3 2.0 2.9 3.1 9.5 12.2 7.1 5.6 Q2 FY21 Q2 FY22 24.4% EBITDA Margin 13.7% ↓↓ H1 FY21 H1 FY22 20.0% EBITDA Margin 16.7%↓ Domestic International • Order inflows impacted due to award deferrals Jobs progress drives revenue in Q2 Margin a function of job mix; PY margins aided by cost savings / contingency releases on job completion The business does not manufacture any explosives nor ammunition of any kind, including cluster munitions or anti-personnel landmines or nuclear weapons or components for such munitions. The business also does not customise any delivery systems for such munitions EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 31#32Hydrocarbon Segment Net Revenue 20%↑ 48.7 40.4 16.0 21.5 32.7 18.9 Q2 FY21 Q2 FY22 8.5% EBITDA Margin 8.3% ↓ Domestic 71.1 Net Revenue 27%↑ 90.6 31.1 37.0 34.1 59.5 H1 FY21 H1 FY22 7.1% EBITDA Margin 8.9% ↑ International RED 48M Receipt of a high value international order buoys order book Peaking of execution activity in onshore jobs drive revenues in Q2 No major margin variation in Q2 as compared to PY EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES (Amount in bn) → LARSEN & TOUBRO 32#33Developmental Projects Segment Net Revenue 3% ↑ 11.7 16.9 Net Revenue 36% ↑ 11.4 0.4 0.9 11.0 10.8 Q2 FY21 Q2 FY22 5.3% EBITDA Margin 4.1%↓↓ Power Development 0.7 16.2 23.0 1.4 21.6 H1 FY21 H1 FY22 5.8% EBITDA Margin 1.9%↓ Hyd Metro (Amount in bn) Segment includes Power Development business (Thermal & Hydel up to the date of divestment) and Hyderabad Metro Lack of coal availability impacts Nabha revenue in Q2; whereas subsiding Covid 2nd wave leads to improved Metro ridership Segment margin impacted by non recognition of Nabha margin from Q3FY21 Roads & TL concessions (part of L&T IDPL) are consolidated at PAT level under the Equity method EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO 33#34IT & Technology Segment Net Revenue 28% ↑ 78.8 121.9 Net Revenue 24%↑ (Amount in bn) 151.0 61.7 25.7 19.1 37.8 58.6 48.5 71.7 15.8 12.9 30.8 25.5 29.7 37.3 Q2 FY21 Q2 FY22 23.2% EBITDA Margin 23.3% ↑ LTI LTTS H1 FY21 H1 FY22 21.9% EBITDA Margin 23.2% ↑ Mindtree • • LTI revenue growth led by Hi-Tech, Media & Entertainment, BFS and Manufacturing Mindtree revenue growth led by Travel, Transportation & Hospitality and Retail, CPG & Manufacturing • LTTS revenue growth led by Plant Engineering & Industrial Products • Margin is a function of utilization, wage cost, onshore: offshore mix and operational efficiencies EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO 34#35Others Segment Net Revenue 4% ↑ 13.2 13.8 20.3 1.1 2.0 3.3 11.2 12.7 Q2 FY21 Q2 FY22 18.0% EBITDA Margin 20.8% ↑ Domestic 17.0 H1 FY21 Net Revenue 33%^ (Amount in bn) 27.1 2.2 24.9 H1 FY22 14.1% EBITDA Margin 18.1% ↑ International Segment comprises Realty, Industrial Machinery, Valves and Smart World & Communications Strong revenue growth in Realty and Industrial Machinery business; Smart World & Communications and Valves businesses report muted revenues • Realty and Industrial Machinery businesses drive margin growth EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO 35#36Financial Services Segment (Amount in bn) Q2 Q2 H1 H1 % Var Rs Bn % Var FY21 FY22 FY21 FY22 33.4 29.8 -11% Income from Operations 66.3 60.4 -9% 2.7 2.2 -15% Reported PAT 4.1 4.0 -3% 1.7 1.4 -16% PAT (Net of NCI) accruing to the group 2.6 2.5 -4% Mutual Fund Average AUM 630.6 782.7 24% Book 988.2 869.4 -12% Gross Stage 3 Assets 5.24% 5.74% Net Stage 3 Assets 1.71% 2.81% Net worth 151.6 192.1 27% Q2 revolved around pick up in retail disbursements, strong collections, improved NIMs & Fees and maintenance of adequate liquidity on Balance Sheet The business continues to pursue the strategy of higher "retaili-sation" of its loan book, diversification of liabilities, maintaining prudent ALM and targeting sustainable NIMS . Sufficient growth capital available EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES → LARSEN & TOUBRO 36#3706 Environment & Outlook EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 37#38India's current decade of inclusive growth Last Decade The Clean up & Reforms Journey • Demonetization • GST • IBC • RERA • Labour Reforms • Ease of Doing Business Overlap Period Current Decade Profitable Growth The Booster Dose India's "Make" Decade could witness.. Higher Cash Sustainability L&T's Generation Focus Areas • Direct Tax cuts • PLI scheme • Fiscal / Monetary push • NIP / NMP • Gati Shakti Capex Resurgence "Manufacturing" & " Exports" • The comeback of Indian consumer • Digital Infrastructure Newer Businesses Improved Return Ratios Risks • Cleaner India - Renewables, Green H₂ Inflation Geopolitical Dynamics Supply Chain Disruptions Return of virus EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES L&T's MOAT Group well positioned to capture "growth upcycle" Healthy Order Book Strong Balance Sheet Capability Spectrum International Presence Growing IT&TS services portfolio to balance cyclicality LARSEN & TOUBRO 38#3907 ESG Disclosures Sustainable progress for a better world STEM EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 39#40Early movers in reporting Building lives Building the nation. 2008 Conciom apply 27 клизам и привно 2009 Rooted to the future 2010 19 typ LARSEN & TOUBRO LARSEN & TOUBRO 2011 downs of FUTURE now THE REST OF BOTH WORLDS RE L&T NATURALLY GE 2012 2013 Networked for Good NETWORKED FOR HIGHER RETURN ON CAPITALS 2018 2016 2017 Led by Technology Equipped for Growth LARSEN & TOUBRO INTEGRATED REPORT 2019-20 Technology for sustainable growth 2019 2020 armony LARSEN & TOURRO 2015 2014 Sustainable progress for a better world 2021 Released on 21st October 2021 Link: Integrated Report | L&T Corporate (Intsustainability.com) FY21 Integrated Report is the 14th consecutive year of sustainability disclosures EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 40#41Sustainability Awards and Recognition CRISIL An S&P Global Company Grant Thorton BEST INTEGRATED REPORT LARSEN & TOUBRO LIMITED Commitments Carbon Neutral 2040 Ranked No.1 in Engineering & Capital Goods Sector as per Crisil ESG rating in India (Overall Rank 22) Received the 'Grant Thornton Bharat SABERA Award' for 'Best Integrated Reporting' in Dec 2020 Water Neutral Thrust Areas Energy Conservation Renewable Energy GHG Emission Reduction Water Materials Efficiency Management Increasing Green Portfolio Improving Vendor Sustain - ability EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES 2035 Employee engagement, Safety and well- being Community development health, education, water and Sanitation and skill building LARSEN & TOUBRO 41#42EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Thank You Investor Relations: P Ramakrishnan ([email protected]) Harish Barai (Harish. [email protected]) Shalmali Dange ([email protected]) LARSEN & TOUBRO 42#43Balance Sheet Rs Billion Mar-21 Sep-21 Incr/ (Decr) Equity & Reserves 759 765 7 Non Controlling Interest 121 126 6 Borrowings Financial Services 865 827 -37 Development Projects 206 185 -21 Others 255 238 -17 Sources of Funds 2205 2142 -63 Fixed Assets (incl ROU assets) 138 131 -7 Intangible Assets & Investment Property 310 308 -2 Loans towards Financing Activities 861 794 -67 Finance lease receivable 70 68 -2 Net Non-Current Assets 150 168 18 Current Investments, Cash & Cash 473 455 -18 Equivalents Net Current Assets 203 218 15 Assets held for Sale (net) 0.03 -0.03 Application of Funds 2205 2142 -63 Gross Debt/Equity Ratio 1.51 1.40 Net Debt/Equity Ratio 1.00 0.97 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 43#44Cash Flow Q2 FY21 Q1 FY22 Q2 FY22 Rs Bn H1FY21 H1FY22 35.2 33.6 41.9 Operating Profit 53.3 75.5 (1.2) (34.7) 12.2 Changes in Working Capital [(Inc)/Dec] (5.0) (22.4) (6.8) (6.9) (13.8) Direct Taxes (Paid)/ Refund [Net] (11.8) (20.7) 27.3 (7.9) 40.4 Net Cash from (used in) Operations (A) 36.5 32.4 (3.6) (3.5) (5.7) Net Investment in Fixed Assets (incl. Intangible & Investment Property) (7.2) (9.3) 127.8 (2.6) 8.2 Net (Purchase) / Sale of Long-Term investments 131.1 5.7 (98.8) 18.5 (29.2) Net (Purchase) / Sale of Current investments (232.0) (10.7) (1.2) Loans/Deposits made with JV/Associate Cos. (0.6) (1.2) 3.9 3.1 2.1 Interest & Dividend Received 7.3 5.2 29.3 15.5 (1.7) (98.5) 16.4 (19.9) (103.6) 0.1 (25.8) Net Cash from /(used in) Invest. Act. (B) (3.1) Issue of Share Capital / NCI (101.5) (10.3) (1.6) (3.0) (61.6) (18.5) Net Borrowings [Inc/(Dec)] 48.3 (80.1) 66.8 (15.2) 12.2 Loans towards financing activities (Net) (29.5) Interest & Dividend paid 17.4 79.0 (30.0) (44.7) (9.9) (38.9) Net Cash from / (used in) Financing Activities (C) 34.1 (48.8) (47.1) (2.3) (24.3) Net (Dec) / Inc in Cash & Bank (A+B+C) (30.9) (26.6) EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 44#45Segment Margin - Q2 FY22 Q2FY21 Q2FY22 Segment (Rs Cr) Net Revenue EBITDA EBITDA % EBITDA Net Revenue EBITDA % Infrastructure Segment 12969 825 6.4% 13923 1152 8.3% Power Segment 687 21 3.1% 1114 30 2.7% Hydrocarbon Segment 4044 343 8.5% 4867 402 8.3% Heavy Engineering Segment 601 30 5.1% 624 98 15.7% Defence Engineering Segment 765 187 24.4% 845 116 13.7% Other Segment 1321 238 18.0% 1379 287 20.8% Total (Projects & Manufacturing) 20386 1645 8.1% 22752 2085 9.2% IT, TS & Mindtree Segment 6167 1428 23.2% 7876 1832 23.3% Financial Services Segment 3342 353 10.6% 2976 350 11.8% Developmental Projects Segment 1140 60 5.3% 1170 48 4.1% Total (Services & Concessions) 10649 1841 17.3% 12021 2230 Total 31035 3487 11.2% 34773 4316 18.6% 12.4% EBITDA to PAT (Q2 FY22) Financial Particulars EBITDA Depreciation IT&TS Dev. Projects Services Projects & Manufacturing* Corporate Total 1832 350 48 2085 211 4527 (295) (28) (83) (296) (26) (729) Segment Result 1537 322 (35) 1790 185 3798 Finance Cost & Tax Expense (415) (99) (380) (177) (593) Non-controlling interest (335) (80) 3 (1664) (413) Share in profit/(loss) of JV and associate (26) 27 1 Exceptional Items (net of tax) 97 97 PAT 787 143 (442) 1643 (311) 1819 * Note: Interest cost and tax provisions are reflected under Corporate EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 45#46Segment Margin – H1 FY22 - H1FY21 H1FY22 Segment (Rs Cr) Net Revenue EBITDA EBITDA % EBITDA Net Revenue EBITDA % Infrastructure Segment 19363 1225 6.3% 24332 1888 7.8% Power Segment 1061 25 2.4% 1873 49 2.6% Hydrocarbon Segment 7105 507 7.1% 9057 804 8.9% Heavy Engineering Segment 979 97 9.9% 1173 196 16.7% Defence Engineering Segment 1238 248 20.0% 1534 255 16.7% Other Segment 2034 286 14.1% 2708 489 18.1% Total (Projects & Manufacturing) 31780 2388 7.5% 40676 3682 9.1% IT, TS & Mindtree Segment 12195 2674 21.9% 15098 3503 23.2% Financial Services Segment 6626 246 3.7% 6037 607 10.1% Developmental Projects Segment 1694 99 5.8% 2296 43 1.9% Total (Services & Concessions) Total 20515 3019 14.7% 23431 4153 52295 5407 10.3% 64108 7835 17.7% 12.2% EBITDA to PAT (H1 FY22) Particulars IT&TS Financial Services Dev. Projects Projects & Manufacturing* Corporate Total EBITDA Depreciation 3503 607 43 3682 512 8346 (584) (51) (169) (590) (52) (1446) Segment Result 2920 555 (126) 3092 459 6900 Finance Cost & Tax Expense (800) (160) (750) (365) (1136) (3210) Non-controlling interest (630) (143) Share in profit/(loss) of JV and associate Exceptional Items (net of tax) (71) 3 47 (770) (24) PAT 1490 253 (947) 2777 97 (579) 97 2994 * Note: Interest cost and tax provisions are reflected under Corporate EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 46#47Share in Profit/(Loss) of JVs/Associates Q2 FY21 Q2 FY22 Rs Bn H1 FY21 H1 FY22 0.39 0.43 L&T Power JVs 0.54 0.73 (0.52) (0.26) L&T IDPL Group JVs (1.15) (0.71) (0.32) L&T Special Steels and Heavy Forgings JV (0.73) (0.07) (0.17) Others (incl associates) (0.20) (0.26) (0.53) 0.01 Total (1.54) (0.24) EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 47