#1Texmaco Rail & Engineering Ltd. Investor presentation September 2023 Vit ra 9022 NOT TO Ultra Tech The T TO BE LOGSE SHUNTED 22 Litra Tech LOT a Tre adventz#2Texmaco Rail & Engineering Ltd. Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure adventz#3Texmaco Rail & Engineering Ltd. Adventz Group: USD 4bn conglomerate Saroj Kumar Poddar, Executive Chairman Agri-Business Engg. & Infrastructure Zuari Agro Chemicals Ltd. Paradeep Phosphates Ltd. Mangalore Chemicals & Fertilizers Ltd. Gobind Sugar Mills Ltd. Listed company •Texmaco Rail & Engineering Ltd. Touax Texmaco Rail Car Leasing Pvt. Ltd. Wabtec Texmaco Rail Pvt. Ltd. Texmaco Infrastructure & Holdings Ltd. Akshay Poddar, Non-executive Director Emerging Lifestyles ZUAR GARDEN CITY Services adventz ⚫ Zuari Infraworld India Ltd. • Zuari Finserv Ltd. • Adventz Zuari Indian Furniture Insurance Brokers Ltd. Products Ltd. • Hettich India Pvt. Ltd. • Zuari Global Ltd. • Zuari Management Services Ltd. • Lionel India Ltd. • Style Spa Furniture Ltd. Adventz has presence across diverse sectors in India#4Texmaco Rail & Engineering Ltd. Texmaco: Snapshot of key business verticals Freight cars Steel Foundry Component systems & Rail Infra & Others AML 2320 solutions . Diverse range of rail freight solutions • . • • Indian Railway freight cars Commodity specific special freight cars • Freight cars for export Special purpose freight cars Only company working with mild-steel, stainless-steel and composite materials for manufacturing of rolling stock solutions • • Largest internationally accredited foundry in India Largest foundry for IR castings Largest exporter of railway castings in India ⚫ Manufactures parts of freight cars, like bogies and castings, for global clients • Also caters to MoD, Marine, and mining industries Crossings and turnouts for high-speed railway Note: Ministry of Defense (MoD); Indian Railways (IR) Global sourcing partner for precision fabricated parts, machined systems and solutions Caters to global parties for sourcing bogie, passenger rolling stock and metro rail parts Working with global majors Development of components for interiors of passenger rolling stock Over-Head Electrification Sub station adventz#5Texmaco Rail & Engineering Ltd. Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure adventz#6Texmaco Rail & Engineering Ltd. New Texmaco adventz 01 Well-positioned to capitalize on the highest ever capital outlay by Indian Railways 04 Access to world class technology from global partnerships Texmaco Rail & Engineering Ltd. 02 Full-suite wagon building and component manufacturing facilities, with export capabilities and credentials 03 Largest and the only AAR (American Association of Railroad) approved steel foundry in India Note: Association of American Railroad (AAR) 05 De-risked business model - focused on manufacturing and export prowess 06 Change management led by professionals and enablers#7Texmaco Rail & Engineering Ltd. National Rail Plan¹ The Great Rail Infra push Capital outlay² Key projects Increase modal share of IR ✓ in freight from 26% to HO 45% by 2030 Target freight volumes from 1.5bn tones in FY'23 to 3.6bn tones by FY'31E 457m tones CO2 savings from DFC in 30 years #|||||| Rolling stock INR 4.8 lakh cr (Wagons 0.9 lakh cr) Terminals INR 0.8 lakh cr Track & Infrastructure: INR 9.3 lakh cr Total: INR 15.0 lakh cr Invest in infra to cater to growing demand till 2050 Note: Indian Railways (IR) 1. Source: CARE report 2. National Rail plan, capital outlay 2021-2031 INR 1.5 lakh cr Dedicated Freight Corridor (DFC)1 INR 2.4 lakh cr Budgetary outlay for railways in Union budget'24 INR 5.0 lakh cr High Speed Rail corridor¹ 126 critical and super critical projects of total cost 1.2 lakh cr for completion by 2024 adventz#8Texmaco Rail & Engineering Ltd. Delivering freight cars, for the needs of many sectors 20+ types of freight cars - supplied to core sectors of the nation... adventz Agri / Food Auto Steel Cement Alumina / Powders Oil Fly Ash ↑ Coal Milk Defense Iron ore Container LPG ... and many more Over 50,000+ freight cars supplied over past c.20 years Technically equipped to cater to markets across all gauges#9Texmaco Rail & Engineering Ltd. Near-term revenue visibility from order-book position Strong trend of ramp-up production 83% 96% 63% 78% 28% 7% 1,637 1,413 1,331 1 1,077 482 127 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 I No. of freight cars mfg. (#) Q1 FY'24 Q2 FY'24 Capacity utilization (%) Annual wagon manufacturing capacity of 6,800 units as of Sep'23 Note: Indian Railways (IR) 1. Minor decline due to change in specifications from IR Strong order-book of freight cars (Sep'23) 20% Private INR 50 bn Indian Railways 80% adventz Strategic alliance with Hindalco for Aluminum freight cars Won its largest ever order of 20,000+ freight cars from IR#10Texmaco Rail & Engineering Ltd. 12,000+ VUs sold to Indian Railways in over 10 years VCR 2267940 70002 One of the largest supplier of freight cars adventz ADITYA BIRLA GRASIM Bharat Petroleum 7,000+ VUs sold to private parties in 10 years TM सेल SAIL ACC cement UltraTech EMENT adani JINDAL Ports and Logistics एनटीपीसी NTPC GATX vedanta transforming for good DP WORLD OMPLO STEEL & POWER 550+ VUS exported to foreign markets over the past 10 years Gondola Wagon for Iron Ore (Liberia) ☑Tank Wagon (Sri Lanka) Oil Tank Wagon (Bangladesh) Mineral Wagon (Ghana) Tank car for Phosphoric acid (Senegal) Container flat Wagon (Mali) Cars with sliding doors (Uganda) Side discharge cars (Vietnam) ArcelorMittal Low sided flat cars (Hungary) C 10.02.2015 Note: Vehicle Units (VUS)#11Texmaco Rail & Engineering Ltd. Full-suite manufacturing facilities, and infrastructure Six manufacturing facilities Strategic location 2 wagon manufacturing facilities Total ~200-acre facilities Effective expansion adventz 5 located at Agarpara, Belgharia, Sodepur and Panihati in Kolkata, WB 1 facility located at Raipur, CG Connectivity to major highways and ports Facilities in Kolkata situated within a radius of 5km Internal network of 15 rail lines 12 Bays for production of freight cars/Loco shells Large yard to hold 200+ freight cars ~ 114 acres at Belgharia & Agarpara & ~42 acres at Panihati & Sodepur ~30 acres at Raipur, CG Expansion of capabilities by enhancing existing facilities Establishing new mfg. facilities Note: West Bengal (WB); Chhattisgarh (CG)#12Texmaco Rail & Engineering Ltd. Largest and internationally approved steel foundry in India Capacity of 42,000 tones p.a., currently running at near 100% utilization Versatile process with demonstrated quality & capability Two Class A Foundries in Kolkata & Raipur with Railway Bogie, Coupler & Crossing mfg. facilities Proven capability of Railway & Mining Castings for domestic and export Strong trend of ramp-up in utilization Industry leading Infrastructure base High Pressure Molding lines Automated Sand Plant FAST LOOP No Bake moulding Inhouse CAD/CAM/CAE 84% 100% 89% 100% 66% Electric Arc Melting Furnace Induction Melting Furnace 31% 10,461 1 10,788 8,871 9,338 6,889 Modern heat treatment facilities 3,271 Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 Q1 FY'24 Q2 FY'24 Production (tones) -Utilization (%) Note: Computer-Aided Design (CAD); Computer-Aided Engineering (CAE); Computer-aided Manufacturing (CAM); National Accreditation Board for Testing and Calibration Laboratories (NABL); Indian Railways (IR) 1. Minor decline due to change in specifications from IR Automatic Induction Hardening NABL certified testing Lab Flash Butt Welding Machine adventz#13Texmaco Rail & Engineering Ltd. 77 Sole exporter of railway castings from India Export Turnover (INR in cr) 114 112 92 95 adventz Strong moat of technical capabilities and certifications 140 Only Indian company certified by Association of American Railroad (AAR) Exports to niche markets - USA, Australia, and Eurasia, etc. Manufacturer and Exporter of Critical Earth Moving, Defense and Industrial Castings Significant enquiries from fortune 500 companies for Industrial castings In-house R&D team recognized by Department of Science and Industrial Research, Govt. of India FY18 FY19 FY20 FY21 FY22 FY23#14Texmaco Rail & Engineering Ltd. Wabtec Texmaco Wabtec CORPORATION Touax Texmaco Touax Ⓡ Texmaco Nymwag¹ AGשחצה Partnerships with Global leaders TOUAK TERMALDE AIT TO A ADUE Note 1. JV agreement signed; construction of facility underway BENSK229 • . Hi-tech products TMX® Bogie mounted brake systems durable, lightweight materials, freely suspended systems Low & High Friction Brake blocks for Freight, Loco & Coach applications Draft Gear and Friction Wedges Leasing solutions Serves a diverse customer-base made of private companies or operators of industrial clients adventz . Freight cars & components Manufacturing of freight cars for domestic and international markets • Manufacturing of Railway components for domestic and international markets#15Texmaco Rail & Engineering Ltd. Australia * Component systems & Solutions Mozambique Kazakhstan Spreading wings in international markets Hi-tech components turnover (INR cr) 27 22 19 FY' 21 FY' 22 FY' 23 KOIKE Large equipment base, enabling automation and precision adventz Surge in global demand for high standard components; supply- chain disruptions create new and large opportunities One of the few manufacturers with capabilities, client relationships and certifications to tap the global market Expected to be qualified supplier to the European region soon Texmaco JV with WABTEC to mfg. world class braking systems and other components for supply to domestic and US market.#16Texmaco Rail & Engineering Ltd. TexERM TexERM* is our Brand for Enterprise Risk Management across the Corporation Policy & Documentation are ready to launch Core group and Departmental Champions identified Project approach on Risk areas initiated under Chief Risk Officer (CRO). adventz#17Texmaco Rail & Engineering Ltd. Environment, Social & Governance @ Texmaco adventz World Bank approved ESG framework launched Impact assessment & Severity Audited with Materiality under process 5-year horizon plan to create positive impact on Environment, Social factors and overall Governance#18Texmaco Rail & Engineering Ltd. A De-risked business model Operational risks Key risks Full-spectrum vs. specialized Execution risks Manufacturing and vendor ecosystem Market risks Limited market risks Risk mitigation Focus on areas of core-competence with experience of 70+ years. Full-suite facilities; Management bandwidth; Gradual shift towards in-house manufacturing and assembly National Rail Plan / Growth of nation Health / Safety / Environment Air pollutants out of Foundry, safety in heavy engineering Undertaking actions on material risks mitigation; Adopting new ESG initiatives adventz#19Texmaco Rail & Engineering Ltd. Enablers to change management as we restructure adventz 01 Focus areas Identify Strategic Business Units (SBUS) 02 Management Infusion of experienced talent from within & outside the industry 03 Efficiency Rationalization of product and process Focused cost reduction 04 Monitoring Equip management with tools to monitor and execute#20Texmaco Rail & Engineering Ltd. 50+ Professionals leading change management 25+ 16+ 35+ yrs exp yrs exp yrs exp yrs exp • Indrajit Mookerjee Executive Director and Vice Chairman B.Tech in Chemical Engineering from IIT, KGP Masters Degree in Chemical Engineering from Georgia Institute of Technology, USA Held senior management positions with various multinationals • Sudipta Mukherjee Dy. Managing Director Postgraduate from IISWBM, Production Management from AOTS Japan Ex. Management Certification from Tepper School of Business, USA & Fulbright Fellowship in Leadership & Management from Carnegie Mellon University, USA . Hemant Bhuwania Chief Financial Officer Chartered Accountant, and B.Com (Hons.) Rich experience in Corporate Finance, Treasury, Budgeting, Costing, Banking, Finance & Accounts Avijit Mitra Chief Executive Officer (Steel Foundry) • Diploma in Mechanical Engineering Advanced Diploma in Foundry Technology from NIFFT Held senior management roles across the leading auto manufacturing, foundry and metallics industries adventz#21Texmaco Rail & Engineering Ltd. Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure adventz#22Texmaco Rail & Engineering Ltd. Future ready company, in a comprehensive revamp 01 Streamlining operations Re-engineer existing product lines Market focused approach Create centers of excellence Cost reduction Conscious and selective backward integration 02 Optimizing revenue mix Increase share of exports and sales to private parties across all segments Journey to manufacture 1,000 freight cars per month 03 Enabling transformation Re-organized key management Embracing new responsibilities Access to global technology Debt-free in 3 years 04 Demerging non- core businesses Kalindee (Track laying, Signaling, Telecommunications, Auto Fare collection, etc.) adventz#23Texmaco Rail & Engineering Ltd. Strong growth visibility - existing and future IR plans to procure 1,50,000 freight cars by 2025 DD Texmaco augmenting existing human capital and expand on technology and infrastructure adventz O 区 Won its largest ever order of 20,000+ freight cars from Indian Railways, execution underway 3-5x growth in export of components and railway castings; Qualified supplier to foreign players; also benefitting from geo-political shift in supply-chains ☑ Strong infra spend by Govt. flowing down to rolling stock, where wagon manufacturers have received orders exceeding the total of last 10 years Note: Indian Railways (IR) HI 目 Company expanding its global reach by capitalizing on existing moats-accreditations, partnerships, and R&D#24Texmaco Rail & Engineering Ltd. Cost reduction drive adventz Project costs Process engineering by identifying Non-value added & complement vs. value added in the whole life cycle Standardization Creation of standard definitions and standardization of all activities Defining SOPs Sourcing Renegotiation of existing supplier contracts based on assured offtake Various other hand holdings to improve process Inventory management Inventory reduction with tie ups and backward integration In-house component developments Reorganization Reorganization and having specific Job role aligned with targets Note: Standard Operating Procedure (SOP)#25Texmaco Rail & Engineering Ltd. Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure adventz#26Texmaco Rail & Engineering Ltd. Snapshot of recent financial performance (H1 FY'24) Demonstrated growth across revenue and profitability Revenue (INR cr) 1,503 797 89% yoy growth H1 FY' 23 H1 FY' 24 EBITDA (INR cr) 134 45 EBITDA recovery H1 FY' 23 H1 FY' 24 Status of order-book (as of Sep'23) ■Freight cars (64%) ~INR 7,800 cr Rail Infra & Others (23%) ■Steel foundry (5%) Components (1%) ■Others (6%) -22 H1 FY' 23 PBT (INR cr) 47 PBT margin recovery H1 FY' 24 adventz#27Texmaco Rail & Engineering Ltd. Overview of key financial metrics Total revenue (INR cr) 2,270 1,853 1,714 1,644 FY' 20 FY' 21 FY' 22 FY' 23 EBIDTA (INR cr) 175 159 165 140 FY' 20 FY' 21 FY' 22 FY' 23 Note 1. Gross revenue, excludes inter-segment eliminations of INR 357 cr Split of Revenue (in %, for FY'23) ■Freight cars (45%) Rail Infra & Others (33%) INR 2,600 cr¹ ■Steel foundry (21%) adventz ■Component systems & solutions (1%) 3 PBT (INR cr) 26 20 -102 FY' 20 FY' 21 FY' 22 FY' 23#28Texmaco Rail & Engineering Ltd. Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure adventz#29Texmaco Rail & Engineering Ltd. Awards and accolades adventz • ISO 9001: 2015. ISO:14001, ISO:45001 certfied by Berue Veritus AAR M 1003, M201, M210 & M215 by Association of American Railroads. . Product and Facility Certified by Ukrain Railroad. • ⚫ DSIR, Govt. Of India recognised In house R&D Unit. • ⚫ Certified Export House recognised by Ministry of Commerce, Govt. Of India Best Foundry of the Year - 2009 by Institute of Indian Foundrymen. Casting of the year - 2012 by Institute of Indian Foundrymen. • Star Performer of the Year (Export) -2015-16, 2016-17, 2017-18. Certified with ISO 17025:2017, General requirements for the competence of testing and calibration laboratories 3. Only NABL Accredited Lab amongst the Railway castings suppliers#30Texmaco Rail & Engineering Ltd. Certified manufacturing process and facilities Infrastructure & ✓ Process AAR M-1003 Research Designs & Standards Facilities and end-product Certified manufacturing RDSO certification Product certification M201, M210 & M215 Quality management system ISO 9001:2015 Environmental Management System ISO 14001: 2015 processes Occupational health & Safety management A system ISO 45001: 2018 Welding of railway components EN 15085-2 Level CL1 adventz#31Texmaco Rail & Engineering Ltd. Gondola Wagon (Liberia) For Iron Ore Aloita 295 Freight cars for export market Tank Wagon (Sri Lanka) DANGER TARE 25 t LOAD 40t Oil Tank Wagon (Bangladesh) BTO 82005 42001 BR NOT TO BE OSE SHANTED Mineral Wagon (Ghana) GR 1902 TARE WEIGHT-15.32+ PAY LOAD -40.00 Tank car for transport of Phosphoric Acid (Senegal) SEFITS C MG Container flat wagon for Mali BOM 1827706 SEPROITE PER Brake Van (Bangladesh) Covered cars with sliding doors for Zambian railways Open side discharge cars for Vietnam railways H fafis BBV adventz#32Texmaco Rail & Engineering Ltd. H CAR 85186 KH B R TONS 32 MOB Freight cars for export market (cont'd) 85382 TONS 281 RETURN PAY LOAD 3917 TARE 177T AXLE LOAD 14.2T Open hopper side discharge cars for Bangladesh railway Covered side discharge hopper car for Bangladesh railway Covered cars with sliding doors for Uganda railways Covered cars with sliding doors for Vietnam railways Low sided flat cars for Hungarian railways Covered car with sliding doors for Yugoslav railways adventz#33Texmaco Rail & Engineering Ltd. Loco shell & fabricated bogies adventz Loco Shells to Indian Railways Loco Bogie Frame- Queensland Railways Flexi Curve Loco Bogie- Mozambique Flexi Curve Loco Bogie- Mozambique 201100 Loco Bogie Frame- Queensland Railways LHB Bogies - Indian Rlys. LBogies for Bangalore Metro, through BEML#34Texmaco Rail & Engineering Ltd. Steel Foundry UNKEL AGNER Kolkata & Raipur units PATTERN SHOP CIN BNO 16341 adventz#35Texmaco Rail & Engineering Ltd. The plant BLUE POINTER WOULDING SECTION Railway components The products ROS-TFTHAN 0089 adventz#36Texmaco Rail & Engineering Ltd. Component business (Hi-tech unit) 102 Safety Continuous improvement Quality Cost Productivity adventz#37Texmaco Rail & Engineering Ltd. Export - Hi-tech engineering products adventz Kazakhstan Australia Mozambique#38Texmaco Rail & Engineering Ltd. Thank You adventz#39Texmaco Rail & Engineering Ltd. Disclaimer This investor presentation has been prepared by Texmaco Rail & Engineering Limited 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 Texmaco Rail & Engineering Limited, 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'. Texmaco Rail & Engineering 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. adventz