#1Shankara Building Products Ltd. Q2 & H1 FY23 Results KOHLER THE BOLD LOOK KOHLER SHANKARA Bulldpro BUILDING MATERIALS AND MORE U KOHLER Shank#2Safe Harbor Shankara Building Products Ltd. This presentation and the accompanying slides (the "Presentation"), which has been prepared by Shankara Building Products Limited (the "Company"), has 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. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2#3About us India's leading organized retailer/wholesaler of home improvement and building products Fulfillment Centers Products SKUS 0.45 mn sqft 75+ 1,00,000+ Mysore, Karnataka SHANKARA Buildpro States/UT 9/1 Shankara Building Products Ltd. Stores Products Thiruvalla, Kerala Electricals Interior-Exterior Irrigation Nellore, Andhra Pradesh Chennai, Tamil Nadu UltraTech Buildpro 3056 0205 ప్రోజెక్ట్ లిమిటెడ్ అల్ట్రాట DOBRO DO ANC Flooring Plumbing & Sanitaryware Construction Materials 3#4Q2 & H1 FY23 Business Highlights 01 T0 The Company has achieved Accelerated financial performance during Q2 & H1FY23 02 70 Achieved Revenue growth of 50% during Q2FY23 and 65% during the H1FY23 03 The Company efficiently managed its net working capital to 32 days in Q2FY23 Shankara Building Products Ltd. 04 70 The Company's focused approach helped to achieve a positive cash flow of Rs.75 Crs for the period ended 30th September 2022 4#5Performance Highlights Particulars (Rs. Cr) Revenue EBITDA PAT Shankara Building Products Ltd. H1FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 H1FY22 Q2FY22 Q1FY22 1,739.3 906.7 832.5 782.2 585.0 1,051.2 605.7 445.5 56.0 29.5 26.5 31.1 15.3 41.4 22.2 19.2 27.5 15.5 12.0 15.6 3.5 15.2 9.0 6.3 Growth Drivers Operational efficiency Positive demand environment Accelerated financial performance over the last 6 quarters 5#6Q2&H1FY23 Financial Highlights Revenue +50% EBITDA +32% 606 907 22 29 9 PAT +73% 16 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 QFY23 1,051 +65% 1,739 41 +35% 56 15 +81% 28 Shankara Building Products Ltd. Rs. Cr H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 6#7Rs. Cr Revenue Break up 621 Retail 966 212 Revenue across Verticals Channel H1FY22 H1FY23 412 218 362 1,051 Enterprise Total 1,739 Shankara Building Products Ltd. 7#8Consolidated P&L Statement Shankara Building Products Ltd. Particulars (Rs. in Crs) Q2FY23 Q2FY22 Q1FY23 H1FY23 H1FY22 Revenue From Operations 906.7 605.7 832.5 1,739.3 1,051.2 Other Income 2.9 1.3 0.4 3.3 2.0 Raw Material 852.5 562.7 782.9 1,635.4 969.6 Employee Expenses 12.5 10.4 10.7 23.2 19.5 Other Expenses 15.1 11.8 12.9 28.0 22.8 EBITDA 29.5 22.2 26.5 56.0 41.4 EBITDA % 3.3% 3.7% 3.2% 3.2% 3.9% Depreciation 3.9 4.3 4.1 8.0 8.8 Finance Cost 5.9 6.0 6.3 12.3 12.2 Profit before Tax 19.7 11.8 16.0 35.7 20.3 Tax 4.1 2.8 4.0 8.1 5.1 Profit After Tax 15.5 9.0 12.0 27.5 15.2 80#9Consolidated Balance Sheet Shankara Building Products Ltd. Particulars (Rs. in Crs) Total Equity Equity Share Capital Other Equity Non-current liabilities Sept-22 607.5 Mar-22 Particulars (Rs. in Crs) Sept-22 Mar-22 556.0 Non-current assets 287.5 274.5 22.9 22.9 Property, Plant and Equipment 239.2 225.8 584.6 533.1 Investment Property 9.6 9.6 Capital Work in Progress 1.9 1.6 44.0 52.5 Right of use Assets 5.1 8.6 Financial Liabilities Goodwill on Consolidation 14.0 14.0 (i) Borrowings 30.8 35.6 Other Intangible assets (ii) Lease Liabilities 6.1 10.0 Financial Assets (iii) Other Financial Liabilities 0.1 0.1 (i) Trade Receivables 3.0 3.2 Deferred Tax Liabilities (Net) 7.0 6.8 (ii) Loans 0.1 0.1 (iii) Other financial assets 10.5 9.6 Other non-current assets 4.2 2.1 Current liabilities Financial Liabilities 458.78 432.3 Current Assets 822.7 766.3 Inventories 380.2 372.3 (i) Borrowings 56.7 86.0 Financial Assets (ii) Trade Payables 374.4 318.7 (i) Trade receivables 370.0 354.0 (iii) Lease Liabilities 0.9 1.3 (ii) Cash and cash equivalents 27.0 2.5 (iv) Other Financial Liabilities 10.1 9.5 (iii) Bank balances other than above 8.4 4.4 Provisions 0.8 0.8 (iv) Others financial assets 0.7 0.8 Current Tax Liabilities (Net) 6.8 3.2 Other Current Assets 36.2 32.2 Current Assets Net 0.2 0.2 Other Current Liabilities 9.2 12.8 Total Liabilities 1110.2 1040.8 Total Assets 1110.2 1040.8 6#10Revenue Break up 13% 15% H1FY22 12% 8% 6% 46% Revenue across States Karnataka Andhra Pradesh Telengana Kerala Tamil Nadu Other States 12% 15% 45% H1FY23 16% 6% 5% Shankara Building Products Ltd. 10#11Working Capital Management Net Working Capital Days* 56 53 Q2FY22 Q3FY22 *Debtors are calculated on Gross Sales 44 41 Q4FY22 Q1FY23 32 Q2FY23 Efficient Working Capital Management Shankara Building Products Ltd. Operating cash flows as of September 2022 stood at Rs. 75 Crs 11#12Store Metrics (Fulfillment centers) Q2FY23 Shankara Building Products Ltd. Q1FY23 Q4FY22 Q3FY22 Q2FY22 No. of Retail Stores 91 91 90 90 90 Total Area (in Sft) 4,58,412 4,58,412 4,34,412 4,34,412 4,34,412 Average Store size 5,037 5,037 4,827 4,827 4,827 (in Sft) Average Ticket size 42,831 43,401 37,966 37,138 35,761 (In Rs) Revenue from retail 483.9 481.6 438.3 348.5 352.4 stores (Rs. Cr) Average rental cost 16.3 per Sq. Ft. per month 16.2 14.1 13.9 13.7 Same Store Sales Growth (YOY) Period No of stores Q2-23 90 Q2-22 90 *The growth is calculated on mature store outlets (Store count - 90) Revenue Growth* (in Rs. Crs) 482.4 36.91% 352.3 12#13Shankara 2.0 Transforming our ecosystem with technology and innovation Shankara Building Products Ltd. Moving to a marketplace model - an omni-channel platform for all construction and building materials through our stores (fulfilment centers) BUILDING MATERIALS MARKET Steel building material Products Structural Steel tubes ☐ Roofing solution Light structure ☐ Rebars (TMT) & Cement Fabrication accessories Non Steel Building Products ☐ Tiles & surfaces ☐ Plumbing & fittings Faucet & Sanitary Electrical & lighting Paints, Adhesive & Chemicals ☐ 91 Fulfillment Centers (4.5 lac sq ft area) ☐ Online channel ☐ Omnichannel Platform Retail Online Wholesale Project Retailer Mom-and-pop stores ☐ End customer/Household owner Builders/Developers Fabricator Plumber Architect Contractor ☐ Engineer Painter Electrician Influencer 13#14The Way Forward Shankara Building Products Ltd. 04 More focus to non steel based products Next generation to drive the growth in Non-steel based business 03 Expanding product categories & Geographical presence • Aims to increase its footprint in new markets/geographies Product portfolio consists of a wide range of building materials 02 Focus on digital presence/marketplace model Move towards greater online processes, ensuring quality and organising the vendor base • Greater focus on tech driven customer acquisition and retention • 01 Building strong relationships with key suppliers/vendors . Consistency in supplies Faster delivery & turnaround schedules Preferred customer 14#15CONTACT US For further information, please contact: Company: CIN L26922KA1995PLC018990 - Mr. Alex Varghese - CFO [email protected] www.shankarabuildpro.com Investor Relations Advisors : CIN U74140MH2010PTC204285 Ms. Manasi Bodas/ Ms. Shikha Puri [email protected]/[email protected] +91 9821043510/ +91 9819282743 www.sgapl.net Shankara Building Products Ltd. 15