#1Premier Explosives Limited K PREMIER EXPLOSIVES LIMITED INVESTOR PRESENTATION | October 2021#2Results Highlight- Q2 FY22 Financial Highlights (in Rs. Mn) Operating revenue Operating profit Profit before exceptions item Exceptional item (VRS expense) PBT Q2FY22 548.2 69.1 30.4 30.4 Q2FY21 452.6 40.1 10.7 (90.8) (80.1) Revenue Breakup (in Rs. Mn) Explosives Defence Services Total Q2FY22 148.9 366.1 33.2 548.2 Q2FY21 111.3 294.8 46.5 452.6 Standalone Numbers WW Premier Explosives Limited 2#3Results Highlight- H1 FY22 Financial Highlights (in Rs. Mn) Operating revenue Operating profit Profit before exceptions item H1FY22 875.6 128.1 48.1 Exceptional item (VRS expense) PBT 48.1 H1FY21 682.8 32.5 (24.0) (90.8) (114.8) Revenue Breakup (in Rs. Mn) Explosives Defence Services Total H1FY22 296.7 491.4 87.4 875.5 H1FY21 282.6 310.1 90.1 682.8 Standalone Numbers WW Premier Explosives Limited 3#4Profit & Loss Statement In Rs. Mn Q2FY22 Q2FY21 Q1FY22 H1FY22 H1FY21 Revenue from Operations 548 453 327 876 683 Expenses 479 413 267 748 650 Operating profit 69 40 60 128 33 Operating Margins 12.6% 8.9% 18.3% 14.6% 4.8% Other income 0.3 1 Depreciation 24 13 24 48 48 3 25 Interest 19 17 19 194 37 35 55 Profit before exceptional item 30 11 18 48 (24) Exceptional item (VRS exp) 91 91 PBT 30 (80) 18 48 (115) Tax (5) (23) 5 10 (33) PAT 25 (58) 13 38 (82) EPS (before exceptional item) 2.39 0.75 1.18 3.57 (1.56) EPS 2.39 (5.34) 1.18 3.57 (7.65) Standalone Numbers WW Premier Explosives Limited#5Balance Sheet Highlights In Rs Mn Equity Share Capital Other Equity Non-current liabilities Current liabilities Total liabilities Net Fixed Asset Block CWIP Sep'21 Mar'21 107.5 107.5 1,777.1 1,742.6 183.4 205.5 1,033.2 885.6 3,101.2 2,941.2 1,681.5 1,726.3 2.9 17.6 Other non-current Assets 240.5 200.1 Current assets Total assets Standalone Numbers 1,176.3 997.2 3,101.2 2,941.2 WW! Premier Explosives Limited 5#6Improving Order Book Order Book (in Rs. mn) 2,976 3,883 4,838 4,287 4,314 Order Break-up ww Premier Explosives Limited Services, 1,540, 36% Explosives, 1,143, 26% Defence, 1,631, 38% ■Explosives Defence Services Mar'18 Mar'19 Mar'20 Mar'21 Sep'21 6#7Company Overview#8Pioneer in Explosives & Defence Sector... WW Premier Explosives Limited A leading manufacturer of High Energy Materials ⚫ 1st in India to manufacture Explosives and Detonating fuse with indigenous technology 1st in the world to produce Safer and Greener NHN detonators on commercial scale 1st Private Company to manufacture Solid Propellants to India's missile programs Serving Defence & Space and Mining & Infrastructure Industries Participation in Defence and Space programs with Indigenous technology & Technology Transfer ⚫ Owns Licenses for manufacturing & development products provides High Entry barrier Highly trained manpower in handling high energy chemicals Team Strength of over 1,200 trained people across various function State-of-the-art manufacturing facilities Seven Manufacturing facilities in Telangana, Madhya Pradesh, Maharashtra & Tamil Nadu 00 8#9Grew under leadership of Industry Veteran.. Dr. A. N. Gupta Chairman & Managing Director WW Premier Explosives Limited • • · • Recipient of 'Udyog Rattan Award' & 'Pickering and ISM Medal' Member of Society of Explosives Engineers, U.S.A, Ex-Chairman of Explosives Development Council and Fellow of High Energy Materials Society of India (HEMSI) Written a number of Technical papers in national & international Seminars and Journals T V Chowdary Dy. Managing Director A Chemical Engineer with over 35 years of experience in production of Chemicals, Explosives and Solid Propellants. Having project execution as his forte, he is excellent in HR Management and is a steadfast trouble-shooter. • Development of solid propellant products for export markets • Y. Durga Prasad Rao Director Operations A mechanical engineer having 34 years experience in manufacture of explosives, propellants, refractories and factory management દ + Supported by skilled workforce Over 1,200 Dedicated and Experienced Employees Team comprises of about 100 Engineers Scientists About 550 people trained in Propellant and Pyrotechnic products 9#10332 ERBX8 437 with impetus on Research & Development... 40 band RA 8192 QÅ Loir NEW PRODUCT Collaboration with Gulbarga University, IIT Madras and BITS Pilani for research in high energy materials Certified Lab WW Premier Explosives Limited World's 1st producer of NHN based detonators on commercial scale much safer and greener than traditional ASA. о Licensed the technology to a US company Developed Solid Propellants for various missiles including a combustion-stable Propellants for LRSAM, MRSAM,ASTRA etc *** Laboratories have been certified by DSIR and accredited by NABL ...thrives to remain at the forefront of technology and product development 10#11& high focus on Safety at Manufacturing facilities Bulk Explosives • Singrauli (Madhya Pradesh) Chandrapur (Maharashtra) • Godavarikhani (Telangana) Manuguru (Telangana) Neyveli (Tamil Nadu) Accessories & Defence Explosiv • Peddakandukur (Telangana) Detonator, Detonating fuse, Packaged Explosives, Pyrodevices Solid Proellants Katepally (Telangana) Solid propellants HMX/RDX Ammunition Mines Warheads Bombs 4 W Premier Explosives Limited#12Greenfield expansion at Katepally . Katepally Solid Propellant Plant WW О Obtained License from Chief Controller of Explosives, Nagpur for production of solid propellant at the facility Facility will enable Company to manufacture Solid Propellant of larger size for ISRO & DRDO. • Received order for production of PSOM-XL (Solid Propellant) for small satellite launch vehicles from Vikram Sarabhai Space Center (VSSC) O Second PSOM -XL was delivered on 30.06.2021 . RDX & HMX Plant О Is commissioned and started meetig the in house requirement and domestic market 12 Premier Explosives Limited#13Premier Serving the critical needs of Industry Commercial Explosives Explosives Limited WW Manufactures diverse range of commercial explosives for Mining & Infrastructure Industries Product range includes Bulk Explosives, Cartridge Explosives, Cast Booster, Detonators, Detonating Fuse, etc Defence & Aerospace • Manufacture of solid propellants for tactical missiles (Astra, Akash and LRSAM / MRSAM) strategic missiles (Agni), Veda Etc. Entered in Indian Space programme as approved supplier of PSOM-XL Motor for use in Polar Satellite Launch Vehicle (PSLV) to ISRO Only domestic manufacturer supplying countermeasures like Chaffs and Flares to Indian defence Undertaking Operation & Maintenance services for solid propellant plants of ISRO at SHAR, Sriharikota and DRDO at ASL, Jagdalpur 13#14Business Segments#15Stable business of Commercial Explosives... Manufacturing Explosives Products .... Bulk Explosives Cast Boosters Detonators Detonating Fuse WW Premier Explosives Limited ...for Clients in Mining & Infrastructure Industries कोल ल डण्डिया Coal India Neyveli Lignite Corporation Limited INLCI VISION COLLIE ONE FAMILY. ONE THE SINGA ERIES COMPAN N. ONE MISSION LIMITED SCCL HILICT MOIL Cement Manufacturers Export to Countries Israel, Greece, Jordan, Turkey, Nepal, Thailand, Philippines, Indonesia, Djibouti etc. 15#16Building Defence & Aerospace segment... Manufacturing Products across segments .... Propellants Pyrogen igniters Case-bonded propellants Free standing grains Fuel rich, Grains Gas generators Strap-on motors for PSLV. Pyros Pyro cartridges Pyro actuators Smoke/flash generators IR generators Specialized squibs Explosives CL-20 HNS-IV HMX RDX and their components Bombs, Warheads ammunition Counter-measures Chaffs Flares ...for various Defence & Space PSUs GAS GENERATOR KEPLOSIVE DILTS PYROCARTIDGES 24, 100 D4) SQUIBS PYROTECHNIC IGNITER FENCE DEBE RAD ORGANISATION WW! Premier Explosives Limited 3 BANGALORE Bharat Dynamics Limited भारत इलेक्ट्रॉनिक्स BHARAT ELECTRONICS (DL) ASL ISRO सत्यमेव जयते First Private Manufacturer and Supplier of Solid Propellants in India Electronics Corporation of India Limited 16#17with focus on enhancing Technological Capabilities... Unmatched Technological know-how and Research Capabilities.... • . • . In-house development Pyrogen Igniters for Strategic missiles Non-Aluminised Propellant for Astra LRSAM composition without Combustion Instability Sledge Rocket Motors . IR flares + Production under ToT ww Premier Explosives Limited and Industrial Licences from DIPP Defence Industrial Licenses • Akash booster / sustainer grains ARM motors Pyrogen igniters for ANSP Daisy II motor for Agni Pinaka rockets - Mark I and II Astra motor Chaff • In Defence, received Industrial Licenses from DIPP for the following Few of the key licenses are: 1. Rockets and Missiles 2. Bombs & Mines for Defence 3. Ammunition. • Air Target Imitator IR flares . Propellant for NGARM & QRSAM Motors Preferred supplier to Defense Sector with High-Entry Barriers : Continuous efforts towards strengthening the Intellectual Property (IP) for manufacturing of High-Energy material 17#18Enhancing product offering... for Indian Air Force On-going Chaffs & Flares Air Target Imitators (for Air Defence & Indian Army Under Development 70 mm rockets Air-Glide bombs Re-graining of existing missiles Indigenization of power cartridges Canopy severance system for Missile Programme Expanding product portfolio Solid Propellant Rocket motor hardware Thermal insulations & Hot integration Ammonium Perchlorate HTPB & CL20 Pyrogen igniters War-heads अनि नगर AGM-1 WW Premier Explosives Limited 18#19Contributing to India's Prestigious Missile Programs Missile Туре Stage Akash Tactical, Surface to Air Production Client End user Bharat Dynamics Limited (BDL) Indian Air Force and Indian Army Tactical, Production from MRSAM DRDO / BDL Indian Army Surface to Air 2019 Agni Ballistic WW Premier Explosives Limited PEL's contribution Supplied 2000+ booster grains and 450+ sustainer grains 100% requirements of solid propellants Production Advanced Systems Laboratory Strategic Forces Command Pyrogen igniter Brahmos Cruise, Air launched Anti- ship, Land attack Production HEMRL Indian Air Force, Indian Navy and Indian Army Tactical, LRSAM Production DRDO Indian Navy Surface to Air Transfer of technology is under induction 100% requirements of solid propellants Tactical, Astra Production DRDO Indian Air Force Air to Air 100% requirements of solid propellants 19#20Increasing participation in India's Space Program Premier Explosives Limited WW Operations & Maintenance Under GOCO • • Operating and Maintaining Solid Propellant plant of ISRO at SHAR under GOCO Contract for 10 years in Jan'2019 Operating and maintaining the solid propellant plant of Advance Systems Laboratory (ASL) at Solid Fuel Complex, Jagdalpur Provides exposure to advanced processes in manufacture of solid propellants PSOM-XL for ISRO • Trial order successfully tested in January 2018 . Successfully completed & delivered an order received from Vikram Sarabhai Space Centre (VSSC) for production of PSOM-XL (solid propallent) for the Satellite Launch Vechile (SLV) • The order was executed at Katepalley Plant 20 20#21Defence: Opportunity landscape WW Premier Explosives Limited Government enhances focus on "Make In India" in Defence Defence Ministry puts '101+ Defence items' under import embargo under 'Atmanirbhar Bharat Programme' Defence Ministry estimates that contracts worth almost 'Rs. 4 lakh crore' to be given to domestic industry in the next 5-7 years. 'Defence Procurement Policy 2016' linking to 'Make in India' Initiative to increase Self Reliance' in Defence Products Offset Opportunities 'Open General Export License' scheme to be launched by Government of India to boost export of Defence Products in Long Term In last 3 years, Exports have grown by 7 times to Rs 10,745 crores National Advanced Surface to Air Missile System II (NASAMS II)- India in the process of acquiring NASAMS II from US 'Strategic Partnership' policy would rope in large private corporates into Defence Production who in turn will create overall Defence ecology including MSMES Well positioned to enhance participation Pioneer in manufacturing and supply solid propellants to India's prestigious missile programs Possesses various Industrial license for production Member of Missile Technologies Control Group (MTCR), India provided access Advanced Technologies Tying-up with OEMs- in advance stage of negotiations • • To Meet the Defence Offset Obligations Forming Partnership to Manufacture in India Manufacturing facilities capable of handling higher volume and new product requirements Greenfield project at Katepally (near Hyderabad) in about 150 acres. Another 100 acres of land available for further expansion 21#22Building Company with Vision - 2025 ww Premier Explosives Limited AKASH AKASH 永春看 AKASH Continue the leadership in High Energy Materials for defence and space Develop low cost processes and techniques for production of industrial explosives Develop capacity for missile integration Meet the full requirements of ISRO's strap-on motors Enter export market for defence products and high energy components 22#23Awards & Appreciations WW Year Award 2019 SME - Empowering India Awards 2019 in the Defense & Aerospace (Mid - Corporate) 2016 HEMSI Honorary Fellowship to Dr. A.N.Gupta 2015 Outstanding Entrepreneur Award 2014 Appreciation for development of Propellant composition for LRSAM without combustion instability 2013 Inc. India Innovative 100 Award for plant-scale manufacture of NHN detonators 2011 Appreciation for development of Propellant Casting of Motors and Igniters for First and Second Stages of Agni-4 Awarded By Hon'ble Union Minister of Steel High Energy Materials Society of India Enterprise Asia Director, DRDO Inc. India Director, Advanced Systems Laboratory ASL 2010 Appreciation for development of Pyrogen Igniters for Agni A4 2008 Appreciation for development of Pyrogen Igniters for Agni A3 ASL 2007 Defence Technology Absorption Award-2007, received from Dr. Manmohan Singh, Prime Minister of India DRDO 2007 Best R&D Effort Award AIMO 2005 Best Technology Development Award for R&D achievements FAPCCI 2004-07 Best Greenery Development Award AP Pollution Council Premier Explosives Limited 23#24PREMIER EXPLOSIVES LIMITED Mr. P. Srihari (CFO) [email protected] 'Premier House', 11 Ishaq Colony, Near AOC Center, Secunderabad 500 015 Contact Us STELLAR INVESTOR RELATIONS Ms. Pooja Sharma/ Ms. Hina Agarwal [email protected] /[email protected] Kanakia Wall Street, Andheri (East), Mumbai 400 093