#1PENNAR INDUSTRIES LIMITED Q4 INVESTOR PRESENTATION MAY 2022 PENNAR INDUSTRIES#2Disclaimer This presentation and the accompanying slides (the "Presentation") have been prepared by Pennar Industries Limited ("Pennar" or the "Company") solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm. You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this Presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this Presentation and any liability in respect of the Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expressly disclaimed. Certain statements contained in this Presentation may be statements of the Company's beliefs, plans and expectations about the future and other forward looking statements that are based on management's current expectations or beliefs as well as a number of assumptions about the Company's operations and factors beyond the Company's control or third party sources and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward looking statements. Forward looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this Presentation. 2 PENNAR INDUSTRIES#3Discussion Summary Results Update Consolidated Balance Sheet Statement Diversified Engineering Company With End-To-End Capabilities Q4FY22 Business Highlights segment wise Order Book ܀ Financial Highlights Robust Manufacturing Facilities & Strong Sales Network Shareholding Structure PENNAR INDUSTRIES#4Results Update Particulars (Rs. in Crs) Q4 FY22 Q4 FY21 YoY% FY22 FY21 YoY% Revenue From Operations (Net of Taxes) 692.77 556.79 24.4% 2,265.75 1,525.35 48.5% Other Income 7.09 8.99 -21.1% 17.06 18.66 -8.6% Total Income 699.86 565.78 23.7% 2,282.81 1,544.01 47.8% COGS 429.82 340.71 26.2% 1,401.59 919.91 52.4% Gross Profit 270.04 225.07 20.0% 881.22 624.10 41.2% Gross Margin % 38.6% 39.8% -120 bps 38.6% 40.4% -182 bps Employee Expenses 59.09 33.41 76.9% 208.45 136.38 52.8% Other Expenses 153.04 137.06 11.7% 484.35 376.19 28.8% EBITDA 57.91 54.60 6.1% 188.42 111.53 68.9% EBITDA Margin % 8.3% 9.7% -138 bps 8.3% 7.2% 103 bps Depreciation 15.25 11.79 29.3% 54.13 48.17 12.4% Finance Cost 20.93 18.10 15.6% 78.38 79.67 -1.6% PBT Excl. Exceptional item 21.73 24.71 -12.1% 55.91 -16.31 -442.8% Exceptional item 0.00 19.96 -100.0% 0.00 19.96 -100.0% PBT 21.73 44.67 -51.4% 55.91 3.65 1431.8% Tax expense 5.01 11.09 -54.8% 14.00 0.81 1628.4% PAT Before MI PAT Margin % 4 16.72 33.58 -50.2% 41.91 2.84 1375.7% 2.4% 5.9% -355 bps 1.8% 0.2% 165 bps PENNAR INDUSTRIES#5Consolidated Balance Sheet Statement Particulars (Rs. in Crs) FY22 FY21 Particulars (Rs. In Crs) FY22 FY21 Equity & Liabilities Property, Plant And Equipment 561.74 554.86 Right use of asset 69.85 31.51 Equity Share Capital 71.08 71.08 Capital Work-in-progress 75.72 61.23 Other Equity 664.10 624.75 Goodwill 0.00 3.22 Shareholder's Equity 735.00 696.00 Non Cotrolling Interest 0.95 0.87 Other Intangible Assets 12.43 13.24 Total Equity 736.13 696.70 Financial Assets Non-Current Liabilities Investments 0.02 0.02 Borrowings Lease liability 98.59 112.78 Trade Receivables 20.89 17.54 44.64 26.69 Other Financial Assets 11.35 10.48 Other Financial Liabilities 12.26 9.91 Income Tax Assets (Net) 13.33 3.28 Provisions 14.28 11.66 Other Non-current Assets 4.31 12.08 Deferred Tax Liabilities (net) 6.95 15.25 Total Non-Current Assets 769.64 707.47 Other Non-Current Liabilities 0.79 1.62 Current Assets Total Non-Current Liabilities 177.51 177.91 Inventories 642.85 486.55 Current Liabilities Investments 44.97 17.57 Borrowings 489.09 471.66 Trade Receivables 425.06 427.02 Trade Payables 543.65 442.72 Cash And Cash Equivalents 37.77 33.53 Lease liability 13.06 6.31 Other Balances With Banks 49.34 21.83 Other Financial Liabilities 56.81 30.54 Provisions 7.78 6.43 Loans 0.00 7.92 Income Tax Liabilities 31.58 9.73 Other Financial Assets 43.49 58.91 Other Current Liabilities 85.42 50.54 Other Current Assets 127.91 131.74 Total Current Liabilities 1227.39 1017.93 Total Current Assets 1371.39 1185.07 Total Equity & Liabilities 2141.03 1892.54 Total Assets 2141.03 1892.54 5 PENNAR INDUSTRIES#6Diversified Engineering Company With End-To-End Capabilities Wide Spectrum of Engineered Products & Customised Turnkey Engineering Solutions Across Diverse Industries Engineering Products • Wide range of customised engineering products catering to diverse sectors Strong designing & manufacturing capabilities Engineering Projects Leading player in Pre-Engineered Buildings, Solar EPC, Designing & Engineering Services with presence in USA Water Treatment Solutions (EPC + O&M), Water Treatment Chemicals & Fuel Additives Engineering Services Emerging Leader in Structural Engineering Services, BIM (Building Information Modelling), Plant- Product Engineering Services, Industrial Automation, Digital Consultancy (IoT) & Value Added Solutions PENNAR INDUSTRIES#7Diversified Engineering Company With End-To-End Capabilities 7 Strong Pedigree & Engineering Excellence Wide Spectrum of Engineered Products & Customised Turnkey Engineering Solutions Across Diverse Industries 37+ Years of experience 1,500+ Engineered Products Engineered Products * 1,000+ Customers Across Industries 7 Manufacturing Plants 3,500+ Employee Base Extensive Product & Service Offerings • Wide range of customised engineering products catering to diverse sectors Strong designing & manufacturing capabilities • Engineering Solutions** Leading player in Pre-Engineered Buildings, Solar EPC, Designing & Engineering Services with presence in USA Water Treatment Solutions (EPC + O&M), Water Treatment Chemicals & Fuel Additives Exposure to High Automobiles Growth Sectors Construction & Infrastructure Pre- Engineered White Goods Subsidiaries Ascent Buildings Pennar Global Metals Enertech Pennar Defense and Engineering Systems Private Ltd Pennar GMBH Railways Solar (MMS & PV) Pennar Global Inc ADITYA BIRLA Prominent Clientele From Diverse Sectors Reliance UltraTech LARSEN & TOUBRO amazon sw MRF קר THERMAX Hindustan Unilever Limited A TATA ITC Limited Note: * includes Steel Products BU, Tubes BU, Industrial Components BU, Railways BU, ** includes PEBS Pennar, Pennar Enviro, Pennar Global subsidiaries PENNAR INDUSTRIES#8Products Q4-FY22 Highlights ➤ Industrial Components ➤ Hydraulics Solar Panels ➤ Aerospace Machined Components ➤ Automotive/ Manufacturing Engineering Steel Products and Profiles ➤ Railway Sub Assemblies • The revenue for the year under the Products has increased from Rs. 790.75 Crs to Rs. 1426.62 Crs up by 80.41% The company has started commercial production of Body in white manufacturing plant in Chennai in Q1 FY23. The company is in talks to acquire Engineering and precision company based out of France. Precision Tubes PENNAR INDUSTRIES#9Projects Q4-FY22 Highlights Projects include • The revenue for the year under projects has increased from Pre Engineered Buildings Steel structures Module mounting Structures • • Rs. 728.77 Crs to Rs.834.10 Crs up by 14.45% Step down subsidiary Ascent Building, USA has started its commercial production and became profitable. The order book of PEB division has increased. 6 PENNAR INDUSTRIES#10Engineering Services Q4-FY22 Highlights 10 ➤Structural Engineering Services BIM( Building Information Modelling) ➤Plant-Product Engineering Services Industrial Automation ➤Digital Consultancy(IOT) & Value added Solutions • The revenue for the year under Services is Rs.5.03 Crs • We have added few more new customers in this division • We added few more customers from Norway & Italy, there by diversifying into new geography's. • Our revenues from BIM & Plant engineering services is seeing a double digit growth. • Further to this we are planning to add new addressable market for this business PENNAR INDUSTRIES#11Financial Highlights FY15-16 Figures are as per the I-GAAP, FY17-21 Figures are as per IND-AS In Rs Crs Total Revenues 2,160 2,127 1,814 1,550 1,544 1,310 2,265 EBITDA & EBITDA Margin 12.2% 11.5% 11.2% 9.3% 221.8 199.9 189 174.2 151.3 8.9% 7.2% 8.3% 4.4% PAT Before MI & PAT Margin 3.8% 5.0% Hi 112 189 FY'16 FY'17 FY'18* FY'19 # FY'20 FY'21 FY'22 FY'16 FY'17 FY'18 FY'19# FY'20 FY'21 FY'22 58.2 58.5 3.1% 90.5 2.5% 66.7 1.8% 53 42 0.2% FY'16 FY'17 FY'18* FY'19 # FY'20 FY'21 FY'22 Return Ratios Leverage Analysis 18.4% 18.0% 15.0% 9.7% 9.0% 10.0% 7.6% 26.0% 21.0% 16.7% 9.5% 5.7% 736 701 697 656 668 600 604 0.72 0.59 14.7% 0.43 0.45 0.50 0.47 503 456 257 297 354 335 327 0.4% FY'16 FY'17 FY'18* FY'19# FY'20 FY'21 FY'22 FY'16 FY'17 FY'18* FY'19# FY'20 FY'21 FY'22 Equity Net Debt Net Debt/Equity ROE ROCE 0.62 11 adjusted to exclude exceptional and non- # Post Merger ROE PAT/Avg. (Equity + MI), ROCE = EBIT / Avg. Capital Employed (Total Debt + Equity + MI) PENNAR INDUSTRIES recurring items#12Robust Manufacturing Facilities & Strong Sales Network 12 Tarapur Velchal Isnapur Patancheru Mallarpur USA Chennai Location Products Sales Network Presence Manufacturing Plants Patancheru, Andhra Pradesh Chennai, Tamil Nadu Press Components, Profiles, ESP / Building Products, Sheet Piles / Solar, Railway Components, CRSS, Fabrication Coaches, Auto Profiles, Components / Hydraulics, Building Products, Body in white goods Isnapur, CRSS, ERW/CDW Tubes, Profiles, Solar Andhra Pradesh Velchal, Telangana Strip Galvanizing, Hot Dip Galvanizing, Pre engineered building systems Tarapur, Maharashtra Solar, Building Products, Auto Profiles, ESP Pre-Engineered Building Systems, Steel structures and Photo voltaic Module INDIA Sadashivpet, Telangana Mallapur, Hyderabad Fuel Additives, Water Treatment Chemicals & Solutions PENNAR INDUSTRIES#13Shareholding Structure Shareholding pattern as on 31-03-2022 Source: BSE 62.09% 37.71% ■ PROMOTERS ■ INSTITUTIONS ■ PUBLIC 0.20% PENNAR INDUSTRIES#14CAR-2000 A Thanking You PENNAR INDUSTRIES LIMITED 3rd Floor, DHFLVC Silicon Towers, Kondapur, Hyderabad, Telangana, India. T: +91 40 4006 1621/22/23/24 | F: +91 40 4006 1618, E: [email protected] y fin