#1RITES THE INFRASTRUCTURE PEOPLE Investor Presentation Financial Results: FY20 & Q4'20 Date: 30th June 2020#2i Safe 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#32 Content Financial Performance - FY20 & Q4'20 4 Order Book 18 C 3 Outlook for FY 20-21 21 3#4I.Financial Performance - FY20 & Q4'FY20#5Round-up of a Successful Year - FY20 Ofice eOffice@RITE Inaugurated by # Highest ever revenue (up 22%) and profits (up 29%) # Final Dividend of 6 per share Shri Rajeev Mehrotra CMD 11 Dec 2019 # Highest ever Annual Dividend of 400 Cr (16 per share) # TD 6500 161% rise in exports over FY19: # Supply of 6 DEMU Trainsets to Sri Lanka completed, secured repeat order of 2 more. # Foray into Cape Gauge market with 706 cr. export contract of DEMU Trainsets and Locos to Mozambique # Construction supervision Operationalized - Mauritius Metro (Phase-1) - # Completed 188kms of Railways Electrification & 83 kms of track work # Completed Integrated Check Post at Biratnagar in Nepal #Added 62nd locomotive to our leasing fleet # Equity investment of 48 cr. for 24% shareholding in IRSDC #1:4 bonus shares issued in August'19 # Implementation of E-office#6Another Year of Strong Performance Consolidated 20.9% 2047 2474 22.1% 2240 2735 Operating Revenue Total Revenue FY19 ■FY20 21.9% 1969 2401 Standalone 23.1% 2164 2665 Operating Revenue Total Revenue Achieved 22% growth in operating revenue as against targeted 17% on standalone basis Growth driven by increase in Exports, Leasing and Turnkey Construction Business in Crore 6#7Profits with Sustained Margins (Consolidated) 19.6% 776 34.7% EBITDA 929 19.8% 730 874 29.3% 633 490 FY19 FY20 Margins 34% 32% 23.2% 32.6% 21.9% PBT Focus on expeditious execution of orders helped in increased profits Increased human resource productivity helped in maintaining margins *EBITDA = PBT + Interest + Depreciation + Amortization PAT in Crore 7#8Profits with Sustained Margins (Standalone) 21.6% 712 867 21.6% 823 in Crore 32.9% 677 34.1% 596 445 FY19 FY20 Margins 32.5% 30.9% 22.4% 31.3% 20.5% EBITDA PBT PAT Consultancy and leasing helped to maintain margins on incremental revenues PAT is positively impacted by 52 crore due to adoption of lower tax rate from this financial year *EBITDA = PBT + Interest + Depreciation + Amortization 8#9Segmental Growth (Standalone) in Crore FY20 1066 121 541 673 -2.3% + 16.5% + 161.6% + 18.7% 264 + 35.5% FY19 1091 104 207 567 195 Consultancy Lease Exports Turnkey Other Income Significant growth in Exports on supply of DEMU Trainsets and Locomotives to Sri Lanka Consultancy remained almost flat due to various reasons including disruption in March'20, even certain foreign projects suffered due to lockdown Leasing business increased on account of increased client-base and addition by existing clients Turnkey project growth can be attributed to timely execution of key projects 9#10Consultancy Leasing Segmental Profits and Margins(Standalone) 479 -0.2% 478 123 in Crore 43.9% 44.9% 96.6% 62 30.2% 22.7% FY19 FY20 FY19 FY20 Margins 5.6% 23.2% 44 47 19 42.6% 38.6% FY19 FY20 23 3.3% 3.4% FY19 Impact of slightly lower consulting turnover offset by increased profit margins in the segment *Profits and Margins before charging un-allocable expenses of *110 crore FY20 Exports Turnkey Projects 10#11714 Q4FY20 at a Glance (Standalone) -22.6% 553 765 -22.1% 596 Operating Revenue Total Revenue Q4'19 Q4'20 Margins 216 -13.9% -12% 206 177 190 -1% 133 131 31.9% 29.8% 22% 28.3% 26.9% 17.4% EBITDA PBT PAT in Crore Revenue moderated during the quarter due to major shipments completed till Q3FY20 and impact on revenue due to lockdown. On annual basis exports and turnkey has exceeded in FY20 over FY19 as detailed in slide 9 Margins remained intact on account of better margins in consultancy ||#12Segmental Analysis (Q4FY20) Profit Margins 48.2% 33.9% Q4FY20 293 31 ☐ 59 15.8% 3.3% ΠΕ170 Revenue -8.6% +6.3% -42.8% -34.9% Q4FY19 320 29 103 261 Consultancy Leasing Exports Turnkey Profit Margins 43.0% 43.8% 34.2% 4.1% in Crore Consultancy margins remained intact despite less revenue due to restrictions in March'20 Exports margins got impacted due to provisioning of 5.45 crore against a recoverable from a client. Provision provided in terms of accounting policy but the amount is expected during this year Fall in turnkey can be attributed to lower execution in the month of March *Profits Margins doesn't include un-allocable expenses 12#13REMCL Performance -2.5% 83 81 Total Revenue -19.1% 25 -0.3% 60 60 60 Financial Year 0.6% 49 50 41 -15.3% T EBITDA PBT PAT 35 in Crore FY19 ■FY20 -5.3% 20 -5.7% 18 17 -5.1% 15 14 4th Quarter 11 ■Q4FY19 10 Q4FY20 Total Revenue EBITDA Sustained PBT & PAT margins of 61% and 43% respectively for the FY20 PBT PAT Q4 revenue impacted because of low demand from Railways due to lockdown and maintenance work for wind mills 13#14Trade Receivable in Days (Standalone) 161 116 105 97 46 113 FY16 FY17 FY18 FY19 FY20 Lockdown impacted the collection performance of the company as March is important month for recoveries US$8.35 million from a foreign client, expected in March'20, but received in May due to lockdown there * Debtor days are net of provisions 14#15FY20 FY19 FY18 FY17 Value Generation for Investors (Standalone) Networth (in Crore) FY16 1878 2199 2035 2384 2577 *EPS for FY 19 has been adjusted for the 1:4 bonus share issue during FY20 17.79 EPS (*) 34.1% 23.86 FY19 FY20 15#16Dividend Apportioned* Dividend Payout Ratio: 67% for FY20 on 12 months PAT (including final dividend for FY20) 136 133 110 255 400 150 Final in Crore 80 2nd Interim 80 100 1st Interim -Total Dividend Paid 80 91 78 40 150 95 70 45 55 FY16 FY17 FY18 FY19 FY20 150 crore (6 per share) of Final dividend for FY 20 has been recommended and will be paid in FY21, subject to approval of shareholders *The above numbers are based on dividends declared for relevant years and not on the year of payment basis 16#17Employee Productivity RA Hv Ω Continuous rationalization of manpower to improve productivity FY20 Profit before Tax per employee stands at Rs. 27 lakh (Rs. 20 Lakh in FY19) 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 Approx 1,500 regular skilled engineers/ professionals REVENUE PER EMPLOYEE (STANDALONE) CAGR: 18.9% 0.65 0.47 0.49 0.41 0.82 FY16 FY17 FY18 FY19 FY20 No. of Employees Status 31.03.2019 31.03.2020 Regular 2005 1970 Deputation 173 161 Contract 1142 1105 Total 3320 3236 in Crore 17#182. Order Book#19Order Book Order Book (as on 31.03.2020) Rs. 6223 Crore Leasing 2% Consultancy Rs. 2464 Crore Exports Lease Rs. 1436 Crore Rs. 122 Crore Turnkey Rs. 2131 Crore REMCL Rs. 70 Crore Turnkey 34% REMCL 1% Consultancy 40% Others 29% Exports 23% * Order book includes, ₹706 crore order from Mozambique, for which RITES emerged as L-1 in FY20 & signed agreement in June’20 * 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 Govt & PSU 71% 19#20Consultancy Exports RITES secured more than 300 projects/contracts including enhanced scope during FY20. Major Projects Secured during Q4FY20 in Crore Project Scope Amount Client Expected Completion Supply of 6 cape gauge Locomotives and 90 passenger coaches including DEMU train-sets 706.10 CFM, Mozambique 2021 Consultancy Services for Independent Quality Audits of KIIFB projects Kerala infrastructure & 60.00 2022 Investment Fund Board Andhra Pradesh State Third Party Audit for implementation of BharatNet Phase-ll 23.00 2022 Fibernet Limited DPR & Project Management Consultancy for Construction of New Railway siding 14.86 Eastern Coalfield Limited 2022 Operation & Maintenance of Locomotives 13.91 Paradip Port Trust 2023 Assessment of stability of Flyover/Bridges Hooghly River Bridge 12.25 2021 Commissioner Ltd Consultancy for Inspection, assessment and compliance 6.64 Delhi Metro Rail Corporation 2021 20#213. Outlook for FY20-21#22Pandemic Impact & Response 01 Revenue and profit targets achieved for FY20 01 Transition to Work from Home(WFH) with e-office and ERP system in place 02 May impact the earnings 02 Expediting project execution and profits for H1FY21 and exports supplies for the remaining year 03 Certain order inflows 03 Contract discussions and shifted to FY21 finalisations being done through VC 04 Collection performance impacted as March being the crucial month 04 Cost cutting measures in place wherever possible • RITES contributed 16 crore to PM CARE fund D RITES • RITES employee's also volunteered to contribute two day's pay Distributed food packets worth 1 crore through IRCTC ⚫ RITES contributed two ambulances equipped with advanced life support system for Gurugram & Nuh district ADVANCE LIFE SUPPORT AMBULANCE 22#23Business Outlook Adequate order book for execution for 2-3 years Strategic focus on international projects, exports and domestic mega projects Introduction of ₹111 Lakh crore projects under the National Infrastructure Pipeline to provide with huge opportunities - Optimistic outlook some high value tenders in pipeline in metros, rail and highway sector Some impact on FY21 due to COVID, but quick recovery expected Sufficient order book, diversified business segments and opportunities in infrastructure sector at domestic level as well as abroad are expected to help in recovery during the next fiscal Difficult to quantify outlook for FY21 at this stage 23#24Thank You