#1EVEREST Investor Presentation January 2015#2EVEREST This presentation has been prepared by Everest Industries Limited (the "Company") solely for information purposes and does 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 what so ever. 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#3Everest Industries... Demand Rural Building Products Urban Products Roofing Sheets & Accessories Fibre Cement Boards Solid Wall Panels & Grids Capacity 810,000 MTPA Manufacturing Facilities 6 manufacturing plants located across India Distribution Network EVEREST Pre Engineered Building Industrial Pre-engineered Steel Buildings Smart Steel Buildings 72,000 MTPA* 3 manufacturing plants in India 38 Sales Depot & over 6,000 Dealer Outlets Presence in over 600 cities & 10,000 villages Export to over 20 countries 1250 Projects executed across India * 30,000 MTPA to be commissioned shortly Complete Building Products Solution Provider 3#4Experienced Board of Directors EVEREST Name Role A. V. Somani Promoter & Chairman M. L. Gupta Vice Chairman Manish Sanghi Y. S. Rao Managing Director Background • Executive Director • M. L. Narula Independent Amitabh Das Mundhra Independent B. L Taparia Independent Mrs. Bhavna G. Doshi Independent . • • • MBA from University of Pittsburgh, USA, PGDBM from SPJIMR Varied experience in area of real estate, construction, textile manufacturing and information management B. Tech from IIT Kharagpur with 40+ years of experience with ACC He was the MD of the Company from 2002 to 2010 Mechanical engineer and an alumnus of IIM-A Joined as Marketing Director in 2001 & became MD in Sep 2010 Mechanical engineer with diverse industrial experience of 30+ years With Everest since 1997 An Electrical Engineer with vast industrial and managerial experience Retired as MD of ACC Whole time director of Simplex Infrastructures Ltd Vast experience in strategy & project management. Commerce & Law Graduate with 40+ years of diverse experience in Accounts, Taxation and Secretarial practice. Expertise in Company Secretarial, Legal & Corporate Governance matter. Retired from Ambuja Cement Limited CA with 25+ years of experience in taxation, restructuring, valuation, family partitions, arbitrations, accounting matters & JVs. Former Partner for KPMG firm in India 4#5Key Business Highlights 5#6Key Business Highlights Industry - Growth Drivers in place “Everest” Strong Brand Name - commands Premium Well established Distribution Network - Ability to introduce new Building products & solutions EVEREST Manufacturing facilities - Well spread across country - Helps deepen reach and control freight cost. Expanding Capacities in Steel Building and Boards & Panels 6#7Building Products - Strong Growth Drivers EVEREST Roofing Industry ◆ Higher Disposable Income & Aspiration quotient of Rural India Rising Minimum Support Price Govt. Focus on Rural Housing Development Higher allocation to Indira Awas Yojana Improve access to credit through Golden Jubile Rural Housing Finance Scheme ◆ Govt. schemes for Rural employment generation ◆ Prime Minister Rozgar Yojana ◆ Rural Employment Generation Programme Large population stays in Kuccha house... Kuccha 21% RCC 21% Pucca Bricks-6% 25% Stone-7% Fibre Cement & Metal Roofing - 12% Clay Tiles-30% Grass, Thatch, Wood, Mud -22% Plastic, Tarpauline and Others - 2% 54% ... Migrating to Pucca House... Offers large opportunity for Roofing Products Source: PMEAC, Census Data & www.fipp.org 7#8Everest - a leading player in Industry Roofing Industry consistently growing... 3.8 3.7 3.5 4.1 4.2 FY09 FY10 FY11 FY12 FY13 .... ... Cement Roofing Market Share Char minar 19.3%. Others 27.5% Utkal. 10.1% EVEREST Ramco 12.8% Vishaka/ Shakti 15.9% Everest 14.0% Everest - 14% Market Share of Fibre Cement Roofing Market in India 8#96 Building Products - Growth Drivers in Place Boards & Panel ◆ Ability to address specific construction needs like ◆ Modular, Ready-to-install product with shorter on-site labour cycle, dry walling Better aesthetic appeal in premium housing projects, commercial applications ♦ Resistance to Fire, moisture, dampness & Termites ◆ Rapid Urbanisation and with steady migration of people to Urban areas Adoption of modern construction techniques - focuses on products which saves time without compromising safety or strength "Clean India" Campaign will use fast modular construction Products T EVEREST EVEREST SMART TOILET Smart Solutions for a Clean Future#10Everest Building Products Portfolio Rootlight EVEREST STRENGTH SPEED SAFETY Hi-Tech Roofing Pre-Engineered Buildings Heavy Duty Floor DuraSteel Roofs Designer Ceilings Access Floor#11Steel Building - Gaining momentum... EVEREST Market Government initiative "Make in India" to drive the PEB Market to growth at faster pace Currently, Low penetration of PEB in India ~ 27% Industrial & institutional buildings on PEB vs. 70% in USA ◆ Usage across all categories of project ◆ Manufacturing Industries, Logistics - Warehousing, cold storages, Infrastructure Projects Airports, Cargo Hubs, Metro Rails Increasing acceptance for Newer Applications like Education, Hostels, Project Accommodation, Guest Houses Growth Drivers ◆ Govt. focus on Infra development Planned to increase infrastructure investment in GDP to 10% Increase in Warehousing space * ◆ Agri warehousing capacity in India - 120 mnT compared to 250 mnT of food grain production ◆ Shortages of Cold storage To minimize wastage of fruits and vegetables, NHB recommend investment of Rs. 55 bn by FY16 ◆ Desire for Speedy Construction A Major driver for the Growth of PEB * By end of 12th five year plan - 11#12... & acceptance in India EVEREST Steel Buildings Faster construction time Strength • 33% of time to completion vis-à-vis conventional construction On site erection using assembly tools without any manufacturing process at location Meets Indian Standards (IS) and international norms • Uniform & consistent quality • Manufactured at state of the art facility • Can withstand cyclones and earthquakes Safety • Minimum onsite work Low cost • Cost of designing, manufacturing, on-site erection and transportation is low, which reduces overall cost of construction A globally accepted construction method ... ..... .....Now increasingly used in India 12#13Everest Steel Building Business... Credentials Highly qualified and experienced team Strong reference clients like Wal-Mart, Britannia, Ericsson, General Motors, Cadbury Business Model On-going Technical Support Design EVEREST Manufacturing Everest - Fastest Growing PEB Manufacturer in the country Construction Services Complete PEB solution provider Project Management Completed over 1,250 Steel Buildings in India On-site Consultation Transportation 13#14Cadbury Plant: 1,000th Steel building of Everest EVEREST Cadbury Mondelez International#15Everest Steel Building Projects EVEREST BRITANNIA INDUSTRIES - Biscuit Manufacturing Factory Patna & Odisha Area (Sq.ft) 5,00,000 GODREJ AGROVER - Cattle Feed Manufacturing Unit Varanasi, Kanpur, Kharagpur & Kolasib (Mizoram) Area (Sq.ft):10,17,384 15#16"Everest" - Strong, Rural Brand High recall and strong Brand Recognition all over the country - Rural consumers Constructions Architects and structural engineers "Everest" - Brand assures that all its products live up to the promise of Strength, Speed and Safety - Everest Offers Complete Building Solutions EVEREST Commands Premium Pricing 16#17Well Spread Distribution Network... EVEREST WARMADA WORKS KHMAPURWORKS Building with Strength, Speed and Safety across India BHAGWARPUR WORKS-ROORKEE DELHI MORE WORKE BANCHI WORKS PODANUR WORKS-COMBATURE KOLKATA WORKS BOMNATHPUR WORKS 0 4 HEAD OFFICE FACTORY PROJECTS Building Products 2 tier distribution network ~1,000 stockist ➤ -6,000 retail outlets 38 sales depot pan India Optimizes Logistics Costs Exports to Emerging & Growth markets Middle East, Africa, SAARC & Europe Steel Buildings Over 1,250 projects executed across India. Illustrative Map & Not to Scale . . . Provides edge for introducing New Products#18Expanding Capacity across segments... EVEREST Building Products: Boards & Panel Greenfield project in UAE for Boards & Panel Capacity: 72,000 MTPA ◆ Estimated Project Cost: Rs. 100 Crs Land acquired, major approvals are in place ◆ Estimated Completion time: 18 months ◆ Caters to increasing demand of International market with significant savings in Transportation cost Steel Buildings ◆ Greenfield project in Dahej, Gujarat for Steel Building ◆ Capacity: 30,000 MTPA Project Cost : Rs. 50 Crs Ready for commercial Production Caters to Projects in Western, Central and Southern region ◆ Savings in Freight Cost and better client servicing including faster deliveries Improves diversification of product portfolio 18#19Financial Highlights 19#20Quarterly Profitability Statement EVEREST Rs. in Crores Revenues Q3 FY15 Q3 FY14 YOY% Q2 FY15 QoQ% 277.3 230.5 20.3% 246.5 12.5% Raw Material 163.1 125.3 140.4 Manpower Cost 26.5 26.2 27.8 Other Operating Expenses 77.5 71.4 69.8 EBITDA 10.3 7.7 33.5% 8.5 20.9% EBITDA Margin 3.7% 3.3% 3.5% Other Income 1.37 1.4 5.6 Depreciation 6.1 7.2 6.3 Interest 4.5 4 3.4 Profit Before Tax 1.1 0.2 435.0% 4.5 Tax -0.07 -1.2 1.1 Net Profit 1.1 -1.0 3.4 Net Profit Margin 0.4% -0.4% 1.4% Earning Per Share (EPS) ^ 0.8 -0.6 2.2 ^ - Not Annualised 20#21Profitability Highlights EVEREST Rs. in Crores Revenues 9M FY15 9M FY14 Var % FY14 FY13 912.0 728.8 25% 1,035.3 1,014.1 Raw Material 534.2 410.3 603.4 561.8 Manpower Cost 82.2 78.4 97.0 92.1 Other Operating Expenses 238.8 213.8 295.1 262.4 EBITDA 56.8 26.3 116% 39.9 97.8 EBITDA Margin 6.2% 3.6% 3.8% 9.6% Other Income 7.3 9.2 12.3 8.8 Depreciation 18.7 19.1 26.7 22.1 Interest 11.4 8.0 12.6 5.6 Profit Before Tax 34.0 8.4 305% 12.9 78.9 Tax 9.9 2.3 3.8 26.4 Net Profit 24.1 6.1 295% 9.2 52.5 Net Profit Margin 2.6% 0.8% 0.9% 5.2% Earning Per Share (EPS) 15.9 4.0 6.02 34.70 21#22Building Products Segment Sales ('000 MT) Revenue (Rs. Crores) EVEREST 652.4 Q4 768.5 758.3 Q4 619.0 ■ Q3 147.5 174.3 Q3 212.2 170.6 ■ Q2 188.4 Q2 154.1 161.2 187.7 138.9 Q1 172.7 Q1 174.4 140.7 133.0 160.0 116.6 142.0 210.7 230.3 291.5 192.9 246.6 231.9 FY13 FY14 FY15 FY13 FY14 FY15 22#23Steel Buildings Segment Sales ('000 MT) Revenue (Rs. Crores) EVEREST 34.4 Q4 276.4 Q4 245.6 Q3 Q3 26.1 11.2 94.3 Q2 67.0 88.87 Q2 10.3 5.7 19 8.1 Q1 ☐ Q1 57.8 7.9 70.5 72.0 8.0 7.2 57.5 7.3 62.1 10.9 96.7 7.9 66.7 5.1 46.0 FY13 FY14 FY15 FY13 FY14 FY15 23#24Balance Sheet Highlights Rs. in Crores EVEREST March-14 March-13 Rs. in Crores March-14 March-13 Shareholder's Fund 295 290 Non-current assets 418 292 Share capital 15 15 Fixed assets (inc. CWIP) 343 248 Reserves & Surplus 279 275 Long-term loans and 75 43 advances Non-current liabilities 86 91 Current assets 409 409 Long term borrowings 51 59 Inventories 242 254 Other non-current 34 32 liabilities Trade receivables 81 52 Current liabilities 447 320 Cash and bank balances 25 53 Short term borrowings 166 95 Other current assets 61 Other current liabilities 282 225 50 50 Total Liabilities 828 701 Total Assets 828 701 24#25For further information, please contact: EVEREST Company: Investor Relations Advisors : Everest Industries Ltd. CIN: L74999MH1934PLC002093 Mr. Rakesh Gupta [email protected] www.everestind.com Stellar IR Advisors Pvt. Ltd. CIN: U74900MH2014PTC259212 Mr. Gaurang Vasani [email protected] www.stellar-ir.com 25