#1PRISM CEMENT PRISM RMC Complete Concrete Solutions ☑JOHNSON Not just tiles, Lifestyles. AMONGST INDIA'S LEADING INTEGRATED BUILDING MATERIALS COMPANY www.prismjohnson.in PRISM JOHNSON LIMITED (Formerly Prism Cement Limited) Investor Presentation May'20 1#2Our Brands PRISM PRISM PLUS CHAMPION CEMENT CHAMPION CEMENT JOHNSONTILES JOHNSONENDURA REDEFINING LIFESTYLES, WORLDWIDE. JOHNSON BATHROOMS FIND CLARITY INDUSTRIAL TILING SOLUTIONS JOHNSON MARBLE&QUARTZ NATURE, REINVENTED PRISM RMC 9011921 59817 31924 www.prismjohnson.in PRISM CEMENT PRISM RMC Complete Coutin JOHNSON Not for Wes, Lifesty PRISM CHAMPION DURATECH CEMENT JOHNSONMARBONITE PREFERRED OVER ITALIAN MARBLE JOHNSON PORSELANO BEAUTIFUL IMPRESSIONS.FOREVER. PrismSand 000 2 HEX#3Integrated Building Materials Company PRISM CEMENT ■ PPC (Portland Pozzalana Cement) ■ Champion Champion Plus Duratech ■ OPC (Ordinary Portland Cement) PRISM RMC Complete Concrete Solutions PRISM CEMENT PRISM RMC JOHNSON Not feat Wes, Lifestyle Complete Co Ready-mixed concrete Aggregates Manufactured Sand JOHNSON Not just tiles, Lifestyles. ■ Tiles (Ceramic, Vitrified, Industrial) Sanitary ware & Faucets (Bath Fittings) ■ Engineering Marbles & Quartz Construction Chemicals Markets Covered Regional presence, (Satna Cluster in Central India) catering mainly to Rural regions Pan India presence, catering mainly Urban Real Estate and Infrastructure Pan India presence, catering Aspirational and Affordable Consumption www.prismjohnson.in 3#4Year ended March 2020 - Executive Summary PRISM CEMENT PRISM RMC Complete Co JOHNSON Not fat es. Lifestyle Particulars Cement Division HRJ Disivion Consolidated Data FY20 FY19 FY20 FY19 RMC Division FY20 Total FY19 FY20 FY19 Total Capacity 7mt 7mt Capacity Utilization (%) 82 89 63msm 58 68msm 58 11.2cum 32 10.5cum 37 금금 ΝΑ ΝΑ NA ΝΑ Revenues (Rsmn) 25,840 27,733 18226 18273 14139 14807 58205 60813 % of total revenues 44 46 31 30 24 24 EBITDA (Rsmn) 5,089 5,230 695 599 229 385 6013 6214 EBITDA (%) 19.7 18.9 3.8 3.3 1.6 2.6 10.3 10.2 % of total EBITDA 85 84 12 10 4 6 EBIT (Rsmn) 3850 4015 -207 50 -139 173 3504 4239 Capital Employed (Rsmn) 16201 15655 11048 11807 1501 1733 28750 29196 ROCE (%) www.prismjohnson.in 23.8 25.6 -1.9 0.4 -9.3 10.0 12.2 14.5 Excluding Insurance numbers 4#5Year ended March 2020 - Standalone & Consolidated financials Summary of Standalone Financials (Rsmn) Net Sales FY20 FY19 % chg 55535 59306 Other operating income 188 Total revenue from operations 55723 250 59556 EBITDA 5217 5547 Other Income 265 207 -6.4% -24.7% -6.4% -5.9% 27.6% Depreciation and amortization 2004 1601 25.2% EBIT 3478 4154 -16.3% Finance costs 2059 1741 Profit before tax 1316 2301 Profit after tax 565 1460 18.3% -42.8% -61.3% EPS (Rs) 1.1 2.9 -61.4% Summary of Consolidated Financials (Rsmn) FY20 FY19 % chg Net Sales 58901 61238 -3.8% Other operating income 661 706 -6.3% Total revenue from operations 59562 61944 EBITDA 5392 6010 -3.8% -10.3% Other Income 282 266 5.7% Depreciation and amortization 2506 2000 25.3% EBIT 3168 4280 -26.0% Finance costs 2516 2196 14.6% Profit before tax 621 2012 -69.1% Profit after tax 17 1164 -98.6% EPS (Rs) 0.0 2.3 -98.7% www.prismjohnson.in PRISM CEMENT दूर की सोच JOHNSON Not just fes Lifesty PRISM RMC Complete Concrete Solutions Standalone EBITDA has declined by ~6% due to lockdown EBIT is down by ~16% yoy due to higher depreciation PBT was at 1,316mn lower as compared to FY19 due to above reasons ☐ PAT declined by ~61% as the Company has reversed deferred tax assets. Company intends to opt for lower tax regime Consolidated EBITDA has reduced by ~10% EBIT is down by ~26% yoy due to higher depreciation PBT and PAT were at `621mn and `17mn 5#6Key highlights for year ended March 2020 PRISM CEMENT PRISM RMC Complete Couto JOHNSON Not feat res. Lifesty Prism Johnson reported consolidated EBITDA of `6013mn (excl insurance numbers), declining by ~3%. The decline is attributed to nationwide shutdown impacting the sales volume in fourth quarter of the fiscal year Cement volumes de-grew by 3% on account of lockdown in March. Else Cement volumes would have grown as they were up marginally by 1% for the first 11 months. Overall cement & clinker volumes declined 9%, as clinker volumes were down sharply. ■ Premium products volume contribution improved by ~400bps to 22% of overall Cement volumes ' Cement EBITDA per ton was at 889, swing of 55 per ton over FY19, on account of higher realizations, partly offset by higher overall costs Consolidated HRJ Division's revenue were nearly flat at ~` 18226mn. Bathroom segment revenues grew by ~9%. Tiles volume were down ~5%. Working capital continues to remain under control During FY20, the turnaround in HRJ operating performance was visible as 9mFY20 Consolidated EBITDA grew by ~9% and EBITDA margins were at ~4.6%. ■Consolidated EBITDA for the year stood at 695mn, as the fourth quarter performance was impacted by lockdown. EBITDA margins for Q4FY20 were at ~1.2%. www.prismjohnson.in 6#7Key highlights for year ended March 2020 PRISM RMC PRISM CEMENT Complete Couto JOHNSON Not forat es, Lifestyle RMC (India) revenues de-grew by ~5%. Volume declined by 14%. EBITDA was at due to prolonged monsoon, NGT ban on construction and volatile input costs ~' 229mn, declining by ~41% After four years of reduction, standalone debt (net) has increased by ~900mn to ~14,750mn mainly due to capex in WHRS and significant blockage of working capital due to sudden lockdown ■ Consolidated debt (net) was at ~18,270mn, marginal increase of ~100mn ■ The Company had declared interim dividend of 1.00 per equity share (10% of FV) in Q1FY20 Re-affirmation of Credit Rating. On May 14, 2020 India Ratings affirmed its existing ratings for Prism Johnson for its long-term loans / NCDs / working capital limits etc ■ The Company has not opted for moratorium with any banks / Fls for principal or interest payments. The Company did not opt for moratorium on TDS and made all payments in time www.prismjohnson.in 7#8Outlook PRISM RMC PRISM CEMENT Complete Co JOHNSON Not feat res. Let Variable cost of Cement Division is likely to come down in the foreseeable future on account of commissioning of WHRS & solar power, fuel mix change and benign fuel cost HRJ Division's variable cost is likely to come down due to lower gas cost All the three Divisions have identified several significant fixed cost saving initiatives. A good part of this cost savings would be sustainable To review inefficient and unprofitable manufacturing assets and undertake appropriate measures ■ Capex are being scaled down in all the three divisions resulting in better cash flows Over the years, the Company has been proactively managing its liquidity profile. During FY20 too, the Company had created liquidity buffer to take care of its financial obligations during H1FY21. Given the current challenges, the Company continues to explore its strategy of pre-payment / refinancing so as to fulfill financial obligations till H1FY22 Rural and Individual Housing Segment demand to normalize and pick up better than Urban demand. Hence Cement demand is likely to come at normalize level much sooner than Tile and RMC demand, which is likely to see demand revival by year end Considering the steps taken to save costs, we expect to emerge leaner and stronger post these short term challenges www.prismjohnson.in 8#9Health and safety priority during lockdown period PRISM CEMENT PRISM RMC Complete Coutin JOHNSON Not feat res. Most Health and Safety of all stakeholders has been of paramount importance during the lockdown period. Prism Johnson undertook following initiatives during these period towards the same The Company provided Covid-19 Testing Machine to Madhya Pradesh Government To ensure safety of all employees, company implemented and facilitated work from home. Regular contact with all the employees and business associates for their and family well-being Compliance with Government directions at all times PRISM CEMENT दूर की सोच JOHNSON Not just tiles, Lifestyles. PRISM RMC Complete Com Selatio Prism Johnson Limited provides *65 Lakhs worth Covid-19 Testing Machine to Madhya Pradesh Government www.prismjohnson.in The Corona virus outbreak has taken the world by surprise. To control the virus, testing facilities play a very vital role. In order to augment the testing facilities of Covid-19 in Madhya Pradesh, Prism Johnson Limited as a responsible corporate citizen has decided to contributein this social cause by handing over a high speed Covid-19 testing machine to the Government of Madhya Pradesh. The 'Made in Singapore', RT PCR QuantStudio 7 Flex system with ancillaries is one of the most advanced machines available presently and can accurately do about 1,000 tests per day. This will help the Government of Madhya Pradesh to do quick and accurate Covid-19 tests on patients and help in controlling the spread of the contagious virus. PRISM JOHNSON LIMITED 6#10Quarter ended March 2020 - impacted by lockdown Segment Revenue (Rs mn) 7954 PRISM CEMENT PRISM RMC Complete Co JOHNSON Not jar Men Lifestylan Segment EBITDA (Rs mn) 2000 1696 1530 1500 9000 8000 6663 7000 6170 6000 5000 4000 5075 4304 1000 3939 3659 3535 3442 3000 500 2000 1000 0 Cement HRJ RMC -500 ■Q4 FY20 Q3 FY19 ■Q4 FY19 1043 -126 -1 47 20 75 103 0 Cement HRJ RMC Q4 FY20 Q3 FY19 Q4 FY19 Cement ~14% yoy volume decline to 1.51mn ton. EBITDA /ton - ` 1016 as compared to 969 on yoy basis. Absolute EBITDA was lower due to volume decline RMC (India) Revenue de-grew by ~10% on yoy basis EBIT losses were at - ` 85mn Q4FY20 performance was impacted by lockdown HRJ Volume de-grew by ~31% yoy, as a result of lockdown. Standalone EBIT loss was on account of lower volumes Consolidated EBITDA margins at 1.2%. www.prismjohnson.in 10#11PRISM JOHNSON - Efforts towards re-creating history PRISM CEMENT EBITDA - `1229/Ton & ROCE - 63% in FY 10 PRISM RMC Complete Cur Cement Years of Profitable Benchmark Sales CAGR - 17% ('03-'12). Conso EBITDA of 14.6% in FY10 HRJ Growth Sales CAGR -39% ('03-'12). EBITDA of 6.1% in FY11 RMC Cement Years of FY11-14 Challenges HRJ RMC Cement FY15-18 Years of Consolidation HRJ www.prismjohnson.in RMC JOHNSON Not juaren, Lifestyl Blending Silo reconstruction, low capacity utilization, estimated opportunity loss ~ 4bn of cash flows Power & Fuel unavailability in AP(2 Plants) & Karnataka (40% Capacity). Flat sales in FY13-14. Conso EBITDA 2.2% in FY14 Cautious on Debtors management, lower utilization leading flattish sales during FY13-14 and EBITDA margins came down (2.5% in FY15) Resort to pet coke, group captive power sourcing and optimizing logistic costs = Better EBITDA/Ton despite reduced / flat realization Fuel & power issues behind. Focus on scaling up of marketing activities, improving utiln levels & efficiencies, white spaces. Lower Working cap Flat sales continued. increasing sales of value added concrete, cost management and focus on infrastructure segment. 11#12www.prismjohnson.in PRISM CEMENT#13RMC JOHNSON Not for Wes, Lifesty Cement Overview Current INDIA PRISM CEMENT PRISM Complete Co 2 Modern Plants in Satna, MP (Central India) with effective capacity of 7mn ton Superior Capital Employed < ~US$ 33/ton 24% 20% Further consolidation in the cluster augurs well Increase in effective coverage in existing markets Network appointment and revival with focus towards untapped and unrepresented markets Superior Product Mix - Duratech+Champion Plus Plant East UP MP Bihar % of Sales 40% 22% 15% 18% 20% 11% 3% 6% 0% FY15 FY16 FY17 FY18 FY19 FY20 Growth plans - Opportunity for greenfield expansion in Kurnool District, AP. ~3000 acres of land in possession, limestone reserves secured Eastern UP MP Bihar www.prismjohnson.in 56% Sales Mix 24% 76% Trade Non Trade 13#14Cement - Financial & Operational Highlights Particulars PRISM PRISM RMC CEMENT Unit FY20 FY19 JOHNSON Not forat e Mastyt FY10 Cement & Clinker Sales Volume Mn Ton 5.72 6.27 2.86 Net Sales Rs in bn 25.7 27.6 10.2 Net realization incl clinker Rs/Ton 4494 4395 3562 Total cost Rs in bn 20.8 22.5 6.7 Total cost Rs/Ton 3627 3590 2347 EBITDA incl operating income Rs/Ton 889 834 1229 Freight & forwarding Unit FY20 FY19 FY10 Lead Distance Kms 382 391 377 Mode Mix Railway Road do do % 43 50 % 57 50 559 73 27 Power and fuel Unit FY20 FY19 FY10 Power consumption per ton of cement Fuel Mix (on Calorific Value) Kwh 74 73 72 Pet-Coke Coal AFR FY10 figures as per IGAAP do do do % 51 60 0 % 47 39 100 % 3 1 0 www.prismjohnson.in 14#15Cement - Financial & Operational Highlights Particulars Raw materials Staff costs Power & fuel Freight & forwarding Other exps Total cost PRISM CEMENT PRISM RMC Complete Cont Unit FY20 FY19 Rs/Ton 531 479 Rs/Ton 278 244 Rs/Ton 1227 1314 Rs/Ton 976 1002 Rs/Ton 615 551 Rs/Ton 3627 3590 JOHNSON Not forat e Mestr Power cost have declined due to sourcing of power from third party at lower cost and part implementation of Solar Power. Fuel cost have come down partly due to change in fuel mix and benign Pet-coke prices Freight and forwarding has come down due to reduction in lead distance and optimization of freight rates Staff cost and Other expenses are up due to lower volumes in FY20 www.prismjohnson.in 15#16Cement Relz - Cost - Realization and Cost Trend 5000 1227 4500 4000 Realization - Cost Trend PRISM CEMENT PRISM RMC Complete C JOHNSON Not feat Res. Let 1400 4494 4395 1200 4182 3907 3784 3800 3686 3587 1000 889 834 800 3627 3590 600 3500 3562 3272 3130 3632 3356 3148 3518 501 3000 3055 619 567 477 2347 410 2500 249 2664 173 2000 FY10 FY11 FY17 to FY20 As per IND AS www.prismjohnson.in FY12 FY14 FY15 FY16 -Realisation -Total cost 400 200 0 FY18 FY19 FY20 FY17 EBITDA/Ton (Incl Operating Income) 16 EBITDA/Ton#17Cement EBITDA/Ton in Rs New Blending Silo Pet Coke EBITDA/Ton Trend PRISM CEMENT PRISM RMC Сория Саконие ко JOHNSON Not for Wes, Lifesty 1,000 889 834 800 619 567 600 477 410 400 200 0 2015 2016 2017 2018 2019 2020 FY17 to FY20 As per IND AS www.prismjohnson.in EBITDA/Ton Trend Better realizations and higher utilization levels EBITDA per ton moved up despite cost pressures 17#18www.prismjohnson.in PRISM RMC Complete Concrete Solutions#19RMC Overview Aggregate Plants - 7 RMC India 106 Commercial Concrete Mega Vertical • Aggregate Concrete Plants -99 PRISM RMC PRISM CEMENT Complete Caution JOHNSON Not fat es, Lifestyle Ready mixed concrete is concrete in ready to use form. It is one of the most versatile building material used in construction. Benefits such as consistent quality, saving of site space, optimize labour, safety, reduced pollution amongst others ■ Started in mid-90s: ~10-12% of total cement used for concrete in India is through RMC route (Metros / Tier1 ~35-60% & Tier2 ~20%) v/s 50- 70% in developed economies ■ Industry Structure Barriers to entry: Location and permission in cities ~50% unorganized. Post GST implementation organized players have gained market share Evolution in construction technology should also aid in growth momentum Labour shortage and self distancing norms due to Covid-19 pandemic could turn into an opportunity for Ready Mixed Concrete manufacturers by replacing site mix, which is labour intensive 19 www.prismjohnson.in#20RMC (India) Division PRISM CEMENT PRISM RMC Complete Coutin JOHNSON Not feat res. Let ■ 2nd largest player: pan India presence with 99 Operational Plants in 45 Cities/towns Backward integration: 7 plants of aggregates & manufactured sand ■ BIS and NABL Accredited Labs ■ Volume decline of ~5% in FY20 due to prolong monsoon & NGT ban in some regions and lockdown in Q4FY20. FY03-12 sales CAGR of 39% ■Long-term demand drivers - Affordable housing offers growth opportunity. Infra development is the need of hour ■ Promote sales of value-added products and increase sales in Individual House Building (IHB) segment ■ Focus on road, metros and captive plants Focus on O&M segment and cost management program in place ■ Plant Health Index continues to improve with more focus on safety and maintenance Asset turnover: >9x (Capital Employed - ~Rs1.5bn and Sales ~Rs14.1bn) www.prismjohnson.in 20 20#21RMC EBITDA - Performance EBITDA `bn PRISM PRISM RMC CEMENT Complete Co JOHNSON Not forat es, Lifestyle 0.60 4.5% 0.52 4.1% 4.0% 0.50 0.40 0.30 2.5% 0.38 3.1% 3.5% 0.39 2.6% 3.0% 2.5% 0.30 0.28 2.0% 0.23 2.0% 0.20 1.6% 1.5% 1.0% 0.10 0.5% 0.00 0.0% 2015 2016 2017 2018 2019 2020 EBITDA % Subdued Economy Extra Cautious on Debtors Management Low Capacity Utilization FY16 to FY20 as per IND AS www.prismjohnson.in 21 21 EBITDA %#22PMC Repairerete DyecreteⓇ comprises an eye catching array of concrete that are suitable for a wide variety of architectural and decorative applications. They combine the aesthetic appeal with the long lasting durability of concrete. Repaircrete™ is Ready to use wet Micro Concrete (M40 & M60) for structural strengthening & retrofitting. It eases concreting in areas with limited accessibility. Elitecrete™ is a light weight concrete with densities varying from 800 to 1800 kg/m3. It is a composite material consisting of Portland cement and its varieties, light weight aggregate, porous fillers and modifying agents. PRISM RMC Complete Concrete Solution SPECIALS www.prismjohnson.in FRCcreteⓇ is fibre reinforced concrete. Fibres which increases its structural integrity, include steel, glass or synthetic fibres. It is used in heavy traffic wearing surfaces like warehouses, container yards, railway platforms, industrial floors, airport taxiways etc. Perviouscrete™ is "Rain water harvesting" concrete. It is a special category of modified concrete that permit rain and storm water run offs to percolate through it, rather than flood surrounding areas or storm water drains.#23www.prismcement.com JOHNSON Not just tiles, Lifestyles.#24H & R Johnson (India) - (HRJ) Overview PRISM RMC PRISM CEMENT Complete Coutin JOHNSON Not forat es, Lifestyle ■ Set up in 1958, offers wide range of tiles, sanitaryware & faucets, engineering marbles & quartz and construction chemical ■ Overall capacity down to ~63mn m2 pa from 68 m2 pa due to close of aging unviable kiln. 11 Manufacturing plants (Own & JVs). Asset light business model thru seven manufacturing JVs contributing ~70% of capacity (5 JVs in Gujarat & 2 JVs in AP) Two faucet manufacturing plants Large national trade network of over ~1000 dealers ■ Johnson Aspire is the Division's initiative to connect with specifier community ■ 8 Experience Centres were opened during FY20 taking the total to 19. These are large format centres displaying entire range of Division products and spread across the country. SELECTED BUSINESS Superbrand Industry Validated 2019 SELECTED Superbrand INDIA Consumer Validated 2019 SELECTED Superbrand INDIA Consumer Validated 2019 JOHNSON ENDURA INDUSTRIAL TILING SOLUTIONS www.prismjohnson.in JOHNSON Not just tiles, Lifestyles. JOHNSON MARBLE&QUARTZ NATURE, REINVENTED 24#25Complimentary and Emerging businesses to leverage Brand & Distributions Construction Chemicals ARDEXTENDURA • 50% Stake in Ardex Endura-JV with Ardex, Germany • R&D Driven • Pioneer in tile fixing adhesives •Added industrial flooring and waterproofing • Plants in Bengaluru, Baroda, Durgapur, Pune, Nellore, Bhiwadi and Allahabad; Pan India presence PRISM CEMENT PRISM RMC Complete Couto Bathrooms JOHNSON BATHROOMS FIND CLARITY •Sanitaryware, Taps / Bath Fittings, ⚫Healthy industry structure; Brand and after sales service play key role •2 Manufacturing plants for Fittings- Baddi, HP & Samba, J&K JOHNSON Not for Wes, Lifesty Last three years revenues Ardex Endura Net sales Rsmn Revenues Bathroom Segment Rsmn 1548 1558 1800 1760 1700 1618 1600 1529 1500 1400 FY18 FY19 FY20 FY18 FY19 FY20 25 1600 1500 1400 1347 1300 1200 www.prismjohnson.in#26HRJ Initiatives going ahead PRISM CEMENT PRISM RMC Complete Conte Solutions JOHNSON Not forat es, Lifestyle Consolidated volumes de-grew by ~5% in FY20, could have been better but for lockdown. Consolidated EBITDA at similar levels as in FY19. Working capital under control. Key highlights during FY20: Turnaround visible however full year performance impacted by lockdown. Complimentary business continue to grow - Bathroom segment revenues grew XX%. Sales organisation sub classified into 4 verticals viz Johnson, Marbonite, Endura, Porselano bringing in greater focus leading to better performance Product innovation and developments - large format, germ free, R series, SRI cool roofs amongst others in tile segment and Johnson International in Bathroom segment Channel expansion - ensuring district presence Renewed focus on cost control and productivity measures Demand drivers in the medium term Export opportunities to open up especially to USA, Europe and China Engineering Marbles & Quartz exports have seen jump over last few years Consolidated export revenues Rsmn - Tiles 1194 2000 464 530 0 FY18 FY19 FY20 Export revenues Rsmn - Engg Marbles & Quartz 2000 213 774 1167 0 Penetration into rural markets FY18 FY19 FY20 Bathroom segment - Channel expansion, secondary demand generations and plumbers connect program www.prismjohnson.in 26#27EBITDA `bn HRJ Consolidated EBITDA - Performance PRISM CEMENT PRISM RMC Complete Crete Solutions 0.90 0.78 0.77 0.80 0.70 3.3% 0.63 3.7% 3.3% 0.68 3.0% 4.0% 3.7% 3.5% 0.60 0.60 2.9% 2.5% 0.50 2.0% 0.40 1.5% 0.30 1.0% 0.20 0.10 0.0% 0.4% 0.5% 0.0% 0.00 2015 2016 2017 2018 2019 2020 IEBITDA EBITDA % FY16 to FY20 as per IND AS www.prismjohnson.in 27 EBITDA % JOHNSON Not forat es, Lifestyle#28ESG initiatives - efforts to gain momentum PRISM RMC PRISM CEMENT Complete Coutin JOHNSON Not Joat es, Lestyle Environment stands out as a key issue in ESG analysis. Prism Johnson is committed towards achievement and maintenance of high standards of Environment, Health and Safety issues at all plants and offices. . . The Company actively looks for opportunity to replace fossil fuels with green / renewable energy: . • • • Cement Division has commissioned 12.5MW Solar Power and plans to commission total of 25MW by September 2020. HRJ Division has plans to commission ~5MW solar power by September 2020 Cement Division to commission WHRS in a phased manner by November 2020 Increasing usage of alternate fuels Usage of bio-diesel for transportation equipment by all the three Divisions - Rain water harvesting measures in and around Cement plant 1.6x water positive. Enhancing the biodiversity in the mined out and peripheral areas Total of 19 categories of Johnson Tiles meet the requirements of GreenPro Eoclabelling and qualifies as Green Tiles. To name a few - Endura Cool Roof, Endura Hi-Traffic, Endura Acid & Alkali Resistant, Endura Industrial, Endura Parking, Endura Hexa Series, Johnson Germfree Wall, Johnson Germfree Floor, Porselano Germfree GVT Slabs & Splits (Elite), Royalcare and Elevation and Smart As a ongoing initiative, RMC Division conducts training and safety program www.prismjohnson.in 28#29ESG initiatives - PRISM RMC JOHNSON PRISM CEMENT Complete Co Not forat es, Lifestyle With the objective of giving back to the society several initiatives were conducted during the quarter at PAN India level: • • Free medical assistance to nearby villagers and organization of free mega medical camps at Satna Awareness on addiction and its health effects amongst employees and drivers across RMC plants Other social initiatives include: rural infrastructure development, promoting and developing education, vocational skill development and social welfare activities Golden Peacock Awards A Strategic Tool to Lead the Competition Excellence in Corporate Governance - 2019 www.prismjohnson.in Company's Corporate Governance comprises inter alia: • Good Board practices • Board commitment towards compliance • • Improved financial performance Transparency in disclosures • Sustainability 29#30ESG - Awards & Recognitions GREEN PRODUCTS Prism & Johnson SERVICES CO Limited BreenPres CERTIFIED Tiles 2019 GREEN PRODUCT * SURTHER SMSPKIN LIMITED PRISM CEMENT PRISM RMC Complete Co JOHNSON Not feat es, Lifestyle GREENTECH FOUNDATION NEW DELHINDIA) www.greentech.org GAIRYDER Environment Award BUR WINNER RSM JOANSOM UNITED CEMENT SECTOR Certificate This is to certify that Prism Johnson Limited Cement Division, Satna has been declared WINNER in Cement Sector for outstanding achievements in Environment Management. Rema Ms. Rema General Ser GOLDEN PEACOCK W A RDS WINNER OF SPECIAL COMMENDATION Environment Management 2019 www SPECIAL GOMMENDATION 11-12 July 2018 Da www.prismjohnson.in 30#31Raheja QBE General Insurance - way forward PRISM RMC PRISM CEMENT Complete Co JOHNSON Not feat es. Let Joint Venture with QBE group of Australia with Prism Johnson stake at 51%. Raheja QBE till recently had a liability led specialist insurance focus. Foray into retail business New brand identity introduced with the core messaging of 'Your Kind of Insurance' Raheja QBE will strengthen its capabilities, processes and technology to build the foundation for long term profitable and sustainable growth Following Products approval received from the regulator Private Car Bundled Policy - Private Car Addon Covers - Annual Group Hospital Daily Cash Arogya Sanjeevni Health Qube Private Car Package Policy along with add-ons rolled out in December 2019 RQBE will soon start business with MISP's (Dealers) dealing in Hyundai (Private Car), Jeep (Private Car), Tata Motors (Private Car and Commercial Vehicle) apart from others FY20 financials: Gross written premium - 1,799.7, growth of ~39% over FY19 Profit (Loss) before tax - ` (658.9mn) as compared to - ` (219mn) in FY19 Solvency - 246% www.prismjohnson.in 31#32Management Profile www.prismjohnson.in PRISM CEMENT PRISM RMC Сория Саконие ко JOHNSON Not for Wes, Lifesty Mr. Vijay Aggarwal, Managing Director B. Tech (Elec.) from IIT, Delhi and PGDM from IIM, Ahmedabad Tenure in Company: 26 years Past experience includes SBI Capital Markets On the Board of various companies including Exide Life Insurance Co, Aptech, Ardex Endura (India), Raheja QBE General Insurance Co 32 32#33Management Profile www.prismjohnson.in Mr. Atul Desai, Executive Director & CEO - RMC PRISM RMC PRISM CEMENT Complete Caution JOHNSON Not foar es. Lifestyl B.E. (Chemical) from Gujarat University and MBA (Marketing) from South Gujarat University. ■Tenure in Company: nearly four years Past experience includes Reliance Cement, Ambuja Cement and GSFC Mr. Sarat Chandak, Executive Director & CEO - HRJ B.SC (Hons), and MBA from University of Pune Tenure in Company: more than a year ■ Past experience includes Kajaria Ceramics and RAK Ceramics Mr. Vivek K. Agnihotri, Executive Director & CEO - Cement ■ M.B.A. from F.M.S., University of Delhi ■Tenure in Company: nearly five years ■ Past experience includes Ambuja Cements and ACC 33#34Management Profile Mrs. Aneeta Kulkarni - Company Secretary PRISM RMC PRISM CEMENT Complete Caution JOHNSON Not feat res. Lifesty ■ Company Secretary, LLB, PGDAM (NMIMS) and FIII (Fellow of Insurance Institute of India) ■ Tenure in Company: 25 years Past experience includes New India Assurance, Thirumalai Chemicals and Vijayshree Chemicals Mr. Manish Bhatia, CFO Chartered Accountant ■ Tenure in Company: nearly three years. ■ Past experience includes Apollo Tyres and Essar Steel www.prismjohnson.in Mr. Rajnish Sacheti, Group President Legal & Indirect Taxes ■ Company Secretary ■ Tenure in Company: 22 years ■ Past experience includes Grasim Industries 34#35Lockdown and WHRS Capex lead to temporary halt to otherwise improving financial parameters PRISM CEMENT PRISM RMC Complete Co Borrowings as on 31st March'20 - Net standalone 14.75bn, has gone up mainly due to WHRS capex Interest cost for FY20 is also higher due to liquidity management. Company had Fixed Deposits worth ` 3.6bn as on March 31, 2020 Financial Ratios JOHNSON Not foar Wes. Lifesty 6.0% 12 4.6% 4.5% 3.7% 3.5% 3.7% 4.0% 2.9% 7 7.2 6.3 2.0% 5.6 2.8 2 2015 2016 2017 3.9 2018 2019 2020 -Financial Cost as % of Sales -Standalone Net Debt / EBITDA (x) 2000 1817 1748 1800 1570 1485 1475 1600 1386 1400 1200 1000 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 www.prismjohnson.in#36Treasury/Liquidity management PRISM CEMENT PRISM RMC Complete Co JOHNSON Not Joat es, Lestyle The Company has not opted for moratorium with any banks / Fls for principal or interest payments. The Company did not opt for moratorium on TDS and made all payments in time Over the years, the Company has been proactively managing its liquidity profile. Given the current challenges, the Company continues to explore its strategy of pre-payment / refinancing of loans well in advance As on March 31, 2020 it had cash & cash equivalent (incl undrawn CC limit) of ~ 5100mn. With better than anticipated collection and control on cash, the Company has already repaid / prepaid ~69% and 11% of its loan obligations for FY21 and FY22 respectively In the forthcoming quarters, Company plans to pre-pay / refinance further ~12% and ~37% of its loan obligations for FY21 and FY22 respectively subject to acceptance of pre-payment by existing lenders The above measures would enable Company to optimize interest cost and take care of loan obligations till H1FY21 Due to working capital management, net standalone debt as on May 26, 2020 is lower by 1.8bn at 13bn as compared to March 31, 2020 Liquidity management 8000 6795 6000 4260 4000 2923 2000 508 2500 750 0 www.prismjohnson.in FY21E FY22E Loan liability Prepaid/re-finance done Balance amount 36#37Scheme of Arrangement & Amalgamation PRISM RMC PRISM CEMENT Complete Couto JOHNSON Not forat es, Mestyle Company has considered and approved Composite Scheme of Arrangement and Amalgamation amongst Prism Johnson Limited (PJL), H. & R. Johnson (India) TBK Limited, Milano Bathroom Fittings Private Limited, Silical Ceramica Private Limited, TBK Rangoli Tile Bath Kitchen Private Limited, TBK Venkataramiah Tile Bath Kitchen Private Limited, TBK Samiyaz Tile Bath Kitchen Private Limited and their respective shareholders and creditors: Key highlights of the scheme: The Appointed Date for the Scheme is April 1, 2018 and it is the date from which the Scheme will be operative. All companies involved in the proposed restructuring, directly or through subsidiary, are wholly owned subsidiaries of PJL. No cash consideration involved The scheme shall be subject to shareholders & creditors approval, as applicable, and the necessary statutory and regulatory approvals Key objectives of the scheme Proposed Scheme would result in elimination of multiple operating companies' structure Simplification of group structure under common management Consolidation of business would lead to better, efficient and economical cost management, cost savings, pooling & optimum utilization of resources amongst others There will be no change in shareholding pattern of the Company The Scheme is likely to get completed by Q3FY20 subject to approvals and opening of lockdown 37 www.prismjohnson.in#38Shareholding Pattern as on 31st Mar❜20 Non Inst, 13.8% Domestic Inst, 7.6% Foreign Inst, 3.7% Institution category holding over 1% of total shares SBI Large & Mid cap Jupiter India Fund DSP Small Cap Fund HDFC Trustee Co Ltd IDFC Sterling Value Fund Shareholder www.prismjohnson.in Promoters, 74.9% % 3.8 2.2 1.4 1.2 1.1 PRISM CEMENT PRISM RMC Сория Саконие ко JOHNSON Not for Wes, Lifesty 38#39PRISM CEMENT PRISM RMC Сория Саконие ко JOHNSON Not for Wes, Lifesty THANK YOU For further information, please contact: Munzal Shah [email protected] +91 22 6675 4142-46 Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the future business, development 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) litigations; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation. Prism Johnson Limited assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise. www.prismjohnson.in 39