#1MAN Industries (India) Ltd Man Industries (India) Ltd. iaky Oil Gas Water Q2 FY22 Investor Presentation#2MAN Industries (India) Ltd Disclaimer This presentation and the accompanying slides (the "Presentation"), which have been prepared by Man Industries India Limited (the "Company"), have 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#3Table of Content 1. Q2 & H1 FY22 Highlights 2. New Era Of Growth 3. Industry Opportunities 4. Company Overview 5. Historical Financial Highlights MAN Industries (India) Ltd 3#4Q2 & HI FY22 Highlights#5Recent Developments MAN Industries (India) Ltd Financial Performance Business Outlook Unexecuted Order book stands at Rs. 13,500 million as on date with active bid book of over Rs. 1,50,000 million CRISIL Rating Upgrade - Long term to CRISIL A/Stable; Short term to CRISIL A1 Cash flow from Operating activities for period ended 30th September 2021 stood at Rs. 2,332 million Gross Debt to Equity as on 30th September 2021 stands at 0.08 Opening up of economic activities post lockdowns shot up demand for oil & gas leading to multi year high oil & gas prices Current level of high prices of oil & gas a big positive for SAW players as it is expected to drive spending for oil & gas pipeline related infrastructure Now the oil & gas companies have started to pass on the hike in price 5#6Consolidated Profit & Loss Statement - Q2 & H1 FY22 MAN Industries (India) Ltd Particulars (INR Mn) Revenue from Operations Q2 FY22 4,902 Q2 FY21 % Change H1 FY22 H1 FY21 % Change 5,872 8,939 9,856 Other Income 109 79 175 197 Total Income 5,011 5,951 (15.8%) 9,114 10,052 (9.3%) Gross Profit 1,458 1,721 2,583 3,177 Gross Margin 29.1% 28.9% 28.3% 31.6% Operating expenses 926 1,118 1,601 2,022 EBITDA 532 603 (11.8%) 982 1,156 (15.0%) EBITDA Margin % 10.6% 10.1% 10.8% 11.5% Finance Cost 82 133 171 332 Depreciation 113 119 224 234 Profit Before Tax 337 351 587 590 Tax Expenses 92 78 150 146 Profit After Tax 245 273 (10.3%) 438 444 (1.44%) PAT Margin % 4.88% 4.58% 4.8% 4.4%#7Consolidated Balance Sheet as on 30th Sept' 2021 MAN Industries (India) Ltd (Rs Mn) Sept' 21 Mar' 21 (Rs Mn) Sept' 21 Mar' 21 Share Capital 286 286 Fixed Assets incl. CWIP 3,257 3,376 Other Equity 8,543 8,063 Non-Current Investment 1,023 1,023 Shareholders' Funds 8,828 8,349 Trade Receivables 403 252 Borrowings 16 20 Other Financial Assets 51 46 Deferred tax liability 239 255 Other Non-Current Assets 1,077 1,080 Other liabilities 105 134 Total Non-Current Assets 5,811 5,778 Total Non-Current Liabilities 360 409 Inventories 4,363 3,316 Trade Payables 5,642 5,176 Sundry Debtors 4,289 6,560 Other Current Liabilities 554 736 Cash 434 173 Current Tax Liabilities 66 97 Bank 552 849 Other Financial Liabilities 322 321 Other Financial Assets 115 153 Short Term Borrowings 700 2,773 Other Current Assets 909 1,032 Total Current Liabilities 7,285 9,102 Total Current Assets 10,662 12,081 Total Liabilities 16,472 17,859 Total Assets 16,473 17,859 7#8New Era of Growth#9Strengthening the Board & Leadership Team Continued Strong Leadership . Building the next generation of Leadership • • Mrs. Heena Kalantri, Non-executive Director • MAN Industries (India) Ltd Mr. Ramesh C Manshukhani, Group Chairman with 40+ years of experience Driving force behind success of the Man Group through setting up new manufacturing facilities with latest technologies Endorsed Mr. Nikhil Mansukhani as Managing Director Over 8 years of experience in steel pipes industry Responsible for business development, designing & liasoning Spearheading current growth and capex plans of the Company Board of Directors Mr. Narendra Mairpady, Ex Chairman I-O-B Non-executive Independent Director, Mrs. Renu Jalan, Non-executive Independent Director Mr. Pramodkumar Tandon, Non-executive Independent Director#10Continued Focus on Corporate Governance MAN Industries (India) Ltd Divestment of noncore business activity . The Board of Directors have approved disinvestment of equity in the subsidiary Merino Shelter Pvt. Ltd, which is engaged in real estate development Proceeds to be used for capex plans for enhancing product range and entry into value added products On the demerger issue Completed Company's part in demerger process by calling the record date pursuant to the Scheme of Demerger to determine the list of shareholders Approached/Applied the Hon'ble Bombay High Court requesting to give directions to (MIPL) to issue and allot equity shares to the list of shareholders Consistent Dividend Paying • Distributing dividend to shareholders for over 25+ years 10#11Leveraging Existing Capacity to Drive Growth Current Capacity Total available capacity 1 million MTPA HSAW Pipe 5,00,000 Optimize utilization to generate higher revenue from current setup LSAW Pipe 5,00,000 Focus on higher ticket size projects for better utilization and reduced wastage • Debottlenecking to enhance production and improve margins • Coating capacity 3LPE/FBE coating & Concrete weight coating (CWC) 6.4 mn sqm pa - 3LPE/FBE & 1,25,000 cubic mts pa - CWC MAN Industries (India) Ltd 11#12Entering New Product Offering ERW Steel Pipes 6" to 18" diameter size (API grade) . To Serve the hydro-carbon and CGD sector . New line to be installed at existing facility at Anjar, Gujarat Installed capacity at 1,25,000 MTPA Estimated capex of approx. Rs 150 crore Expected to be operational by Q1 FY23 Present Capacity MAN Industries (India) Ltd Steel Bends, Value added Products & Upgradation • Size range of 18" nominal bore to 48" nominal bore Volume 400 - ~500 bends annually To be installed at Anjar, Gujarat Estimated Capex of Rs. 100 crore Expected to be operational by Q1 FY23 Projected Capacity 1,25,000 ERW 5,00,000 5,00,000 LSAW HSAW 5,00,000 5,00,000 2020-21 2022-23 12#13Industry Opportunities#14Strong Demand Growth from Global Oil & Gas Sector • Source - IEA Global demand for steel pipes and tubes to increase at CAGR of 6.2 % from 142.4 billion USD in 2019 to 230.4 billion USD in 2027 Oil & Gas sector largest consumer of steel pipes Increase in spending for exploration and distribution of oil and gas will lead this growth Global Steel Pipes & Tubes Market (USD Billion) 6.2% CAGR 230.4 217.0 204.3 192.4 181.1 170.6 160.6 151.2 142.4 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E 2027E MAN Industries (India) Ltd 14#15Supported by Domestic Gas Infra Push National Gas Grid City Gas Distribution MAN Industries (India) Ltd Govt plans to increase share of natural gas in the energy mix to increase to 15% by 2030 from 6% now Announced the expansion of the natural gas grid from the 18,000 kilometers to 34,500 kilometers CGD market to grow at 10% CAGR over next 10 years Plans to take CGD network to 1,74,000-inch km in 2025-26; ~65,000-inch km over next two years 18,000 Pipeline Infrastructure (Km) ~16,500 km addition 2020 Indian City Gas Distribution Market (MMSCM) 34,500 10% CAGR 9,223 25,570 2025-2026 2020 Source - Ministry of Petroleum & Natural Gas, ResearchAndMarkets.com 2030 15#16And Rising Opportunities in Water Infra . Jal Jeevan Mission 3,50,000 Total Planned Outlay 1,40,000 Govt's Initiatives Fig in Rs. crore Large diameter pipes share National River Linking Scheme Fig in Rs. crore 5,60,000 1,12,000 Total Planned Outlay Large diameter pipes share MAN Industries (India) Ltd Union Budget 2021 - 22 has allocated Rs. 50,000 crore for Jal Jeevan Mission Total size of opportunity for large diameter steel pipes in water Infrastructure estimated at ~Rs. 1,400 bn in Jal Jeevan Mission and Rs. 1,120 bn in National River Linking Scheme Source - Ministry of Jal Shakti, Management Estimates 16#17Company Overview#18Among Leading Manufacturer of Large Diameter Pipes MAN Industries (India) Ltd 25+ years in pipe industry API grade LSAW, HSAW, Coating products used in O&G, water 1 Million+ MT installed capacity 5 production lines at 2 state of art manufacturing facility Approved Vendor for domestic & international oil & gas majors ☑ 13,000+ KM pipe supplied since inception • Executed critical and complex projects worldwide GAIL for its Jagdishpur Haldia-Bokaro-Dhamra- Phase II project Kuwait Oil Company for gas oil pipeline from MAA to Sabya of 1.75 lakhs MT (~700 Km) First Indian company to export 80inch diameter 18-mtr-long pipe with 24 mm thickness for a prestigious water project 18#19Offering Specialized Products through State-of-art Facility MAN Industries (India) Ltd MAN Industries (India) Ltd. Anjar, Gujarat • Easy and fast access to Kandla & Mudra port to cater to International market Close proximity to rail and national highway Pithampur, Madhya Pradesh Close to national highway, saving logistic cost Strategically located to cater to domestic market Manufacturing facility spread across ~150 acres of land 19#20Approved Vendor for all Oil & Gas Majors Worldwide International Clients ركانية تلط عمل ال Petal De شركة أبوظى التحليات البترولية البرية الأكوا قطر للبترول Qatar Petroleum Day ENERGY TRANSFER 1000 TOTAL SNC-LAVALIN Technip Domestic Clients PETRONET LNG LIMITED GSPC CPCL (SCOP) LARSEN & TOUBRO الحياة لمادة الحديد وعده Egplin Natural Gas Coy ASCO ركات المصرية القدرات الطبيعية شركة الغاز العمانية ش.م.ع.م OMAN GAS COMPANY S.A.D.C GASCÓ BECHTEL Enppi 8 PETRONAS हिन्दुस्तान पेट्रोलियम HP ओएनजीसी GP ongc বাস ট্রান্সমিশ PERTAMINA কোম্পানী লিমিটেড GAS TRANSMISSION COMPANY LIMITED MAN Industries (India) Ltd الكويت Tuwait oll تركية Company KINDER MORGAN 5 GAIL (India) Limited (इंडियन ऑयल) IndianOil ESSAR Reliance Industries Limited बी एच ई एल BHEL ISO 9001 मेकॉन Company adani IOT Glocally Entrepreneurial Cairn (EIL Bharat Petroleum Strong and Long-term client relationship built on quality and timely execution 20 20#21Corporate Social Responsibility MIIL fulfils its socio-economic goals by partnering with various NGO's, groups or directly Company has increased its CSR spending by allocating special funds for the needs during the COVID -19 pandemic Key Focus area of CSR activities Education Women Empowerment Health Care • Key Initiatives MAN Industries (India) Ltd Employability training to women Providing support in education to under privileged children Providing aid on medical front to weaker sections of the society Initiatives to improve personal Hygiene • Supplied Covid testing machines, PPE kits, masks, infrared thermometers, etc. for COVID-19 relief Pediatrics ward built for TATA hospital FY21 CSR spent of Rs. 1.76 crore higher than the required obligation, including special contribution towards covid-19 relief 21#22Historical Financial Performance#23Consolidated Profit & Loss Statement - FY21 Particulars (INR Mn) Revenue from Operations Other Income Total Income FY21 FY20 % Change 20,802 17,593 308 166 21,110 17,758 18.9% Gross Profit 7,068 5,127 Gross Margin 33.5% 28.9% Operating expenses 18,752 15,913 EBITDA 2,358 1,845 27.8% EBITDA Margin % 11.2% 10.4% 78 bps Finance Cost 527 644 Depreciation 464 523 Exceptional Items 0 25 Profit Before Tax 1,367 653 Tax Expenses 358 98 Profit After Tax 1,009 555 81.7% PAT Margin % 4.8% 3.1% 165 bps MAN Industries (India) Ltd 23#24Consolidated Balance Sheet as on 31st March 2021 MAN Industries (India) Ltd (Rs Mn) Mar-21 Mar-20 (Rs Mn) Mar-21 Mar-20 Share Capital 286 286 Fixed Assets incl. CWIP 3,376 3,719 Other Equity 8,063 7,178 Non-Current Investment 1,023 1,023 Shareholders' Funds 8,349 7,464 Trade Receivables 252 511 Borrowings 20 153 Other Financial Assets 46 156 Deferred tax liability 255 266 Other Non-Current Assets 1,080 1,079 Other liabilities 134 167 Total Non-Current Assets 5,778 6,488 Total Non-Current Liabilities 409 586 Inventories 3,316 3,796 Trade Payables 5,176 5,613 Sundry Debtors 6,560 4,500 Other Current Liabilities 736 1,611 Cash 173 1,360 Current Tax Liabilities 97 93 Bank 849 856 Other Financial Liabilities 321 657 Other Financial Assets 153 198 Short Term Borrowings 2,773 2,248 Other Current Assets 1,032 1,075 Total Current Liabilities 9,102 10,222 Total Current Assets 12,081 11,784 Total Liabilities 17,859 18,272 Total Assets 17,859 18,272 24#25Annual Profit & Loss Highlights Total Income Rs. Mn Gross Profit (Rs. Mn)/Gross Profit Margin (%) MAN Industries (India) Ltd 30,000 22,424 8,000 33.5% 40% 21,110 22,500 7,000 28.9% 35% 16,643 17,758 27.3% 6,000 24.3% 7,068 30% 5,000 25% 15,000 5,454 4,000 5,127 20% 4,552 3,000 15% 7,500 2,000 10% 1,000 5% 0 0% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA (Rs. Mn) / Margin (%) PAT (Rs. Mn) / Margin (%) 10.9% 11.2% 1,200 6% 2,500 10.4% 12% 4.8% 8.9% 2,358 1,000 5% 2,000 3.8% 1,989 8% 800 1,009 4% 1,500 1,813 1,845 3.1% 2.6% 600 3% 637 1,000 588 4% 555 400 2% 500 200 1% 0% 0 0% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 *EBITDA Including other income 25#26Key Financial Ratios Return on Capital Employed (%) 18% 22% 19% 16% FY18 FY19 FY20 FY21 Debt to Equity 0.4 FY18 0.3 0.3 0.3 FY19 Dividend Payout (%) 15% 13% 11% 10% FY18 FY19 FY20 FY21 Book Value Per Share (Rs.) MAN Industries (India) Ltd 146 131 123 114 FY20 FY21 FY18 FY19 FY20 FY21 - ROCE EBIT/Capital employed (Total assets - Current liabilities) 26#27Man Industries (India) Ltd. MAN Industries (India) Ltd the line pipe people THANK YOU Mr. Mahantesh M, Manager IR [email protected] Man House, 101, S.V. Road, Vile Parle (W), Mumbai. Pareto Capital (Investor relations advisor) Ms. Pooja Dokania/ Mr. Smit Shah [email protected]/ [email protected] B/210, Kanakia Wall Street, Andheri (East), Mumbai