#1H HARIOM PIPES | SCAFFOLDINGS | COILS HARIOM PIPE INDUSTRIES LIMITED For Sale INVESTOR PRESENTATION September 2023#2Safe harbour / Disclaimer H HARIOM PIPES SCAFFOLDINGS | COILS This presentation and the accompanying slides (the "Presentation"), which have been prepared by "Hariom Pipe Industries Limited" (the "Company") solely for the 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 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. Certain statements in this presentation concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures and general economic conditions affecting demand / supply and price conditions in domestic and international markets. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable. 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. The Company does not make any promise to update/provide such presentation along with results to be declared in the coming years. 2#3do Uttam Jana 1362181858 Company Overview 1205#4Vision, Mission and Goal H HARIOM PIPES SCAFFOLDINGS | COILS VISION To be a top-notch steel pipe producer, constantly striving for value-added products MISSION To grow, horizontally and vertically, our product basket of quality steel products and pursue geographical expansion GOAL To reach Rs 2,500 crore in Revenue by FY26 without compromising on our profitability#5Products One of the most integrated players of steel pipes and tubes Backward integrated into steel production from iron ore and scrap Forward integration into value-added steel products 80% H HARIOM PIPES SCAFFOLDINGS | COILS Share of Value Added Products in Revenue Value added products I Recycled Steel I MS Billets Hot Rolled Strips MS Pipes and Tubes Scaffolding Iron Ore* Sponge Iron T Galvanised Coil Galvanised Pipe Hot Rolled Coils* HRPO (Hot Rolled Pickled and Oiled) Cold Rolled Coils Cold Rolled Pipe *purchased from external sources I 5#6About Hariom An integrated producer of customised steel products HHARIOM PIPES SCAFFOLDINGS | COILS One of the most integrated players of steel pipes and tubes Modern facilities driving efficient and sustainable production ll, Stronghold in the South and West India market A customer-centric approach to developing customised solutions Sustained growth and profitability showcases market resilience and adaptability 9#7Manufacturing Modern facilities driving efficient and sustainable production H HARIOM PIPES SCAFFOLDINGS | COILS Hot Charging in manufacturing substantially reduces carbon emissions and power consumption Harvesting pits save rainwater and recharge borewells sustainably 6000 tree plantation נונו ERP systems for real- time order intimation and billing Zero Liquid Discharge system for water recycling, ensuring zero wastage and circular usage Carbon dust (solid emission in Furnace) extracted for reuse in printing industry Mahabubnagar Pipe unit is 100% powered by solar energy#8Company at a glance We have built a strong foundation to drive our future growth H HARIOM PIPES SCAFFOLDINGS | COILS 701,232 MTPA Total installed capacity An integrated producer of premium steel products 300,000 MTPA of GP/GC capacity 250+ Product specification 1500+ Dealer network and POS Robust performance over FY20-FY23 2 MW Renewable power Installed Capacity (MTPA) 701,232 533,232 41% 36% 53% 300,832 300,832 243,400 Revenue CAGR EBITDA CAGR PAT CAGR FY20 FY21 FY22 FY23 Q1FY24 8#9Key milestones Progressively adding capacity of value-added products 2017 Started slitting line 2010 . 2019 2020 Acquisition of Sponge Iron Unit situated at Anantapur, A.P., with a capacity of 36,000 MTPA to achieve cost efficiency and better control of the entire value chain Enhancement of installed capacity in Furnace Unit, Rolling Mill and Pipe Mill to 264,832 MTPA 2018 Converted to a public limited company; renamed as Hariom Pipe Industries Limited • Started Rolling Mill Unit in May Started Pipe Mill Unit-1 in July 2011 Started Pipe Mill II, Scaffolding Unit 2008 Started Furnace Division in February 2007 Incorporated as Hari Om Concast and Steels Private Limited on 21st June 2007 2022 HHARIOM PIPES SCAFFOLDINGS | COILS • Increased Scaffolding Unit capacity to 5000 MTPA • Raised Rs 130 crores (gross) through an IPO on Main Board (NSE and BSE) on April 13 • Furnace unit installed capacity increased to 104,232 MTPA, while rolling mill installed capacity was increased to 124,000 MTPA • • 2023 Acquired operating assets with GP/GC capacity of 180,000 MTPA located at Tamil Nadu, resulting in product diversification 10+ new value-added products, such as GP pipes and coils, added Increased the Pipe Mill's capacity to 132,000 MTPA Set up a GP Unit at Mahabubnagar, TS with a 120,000 MTPA total capacity Rs 102.85 crores received through the issue of warrants and equity shares 9#10Manufacturing Modern facilities driving efficient and sustainable production H HARIOM PIPES SCAFFOLDINGS | COILS Location Products and Installed Capacity Capacity in FY22, Product MTPA Capacity in FY23, MTPA Expected Capacity in FY24, MTPA M.S. Billets 95,832 1,04,232 1,04,232 HR Strips 84,000 1,24,000 Mahabubnagar, Telangana Integrated Steel Plant 1,24,000 MS Tubes 84,000 84,000 1,32,000* GP Plant Galvanised Pipes 1,20,000* Scaffolding 1,000 5,000 5,000 Anantapur, Andhra Pradesh (near Bellary) Sponge iron unit Sponge Iron 36,000 36,000 72,000 Perundurai, Erode, Tamil Nadu GP/GC plant Newly acquired plant through an Asset Transfer Agreement for a cash consideration of Rs 55 Crore TOTAL Galvanised Pipes & Coils 1,80,000 1,80,000 3,00,832 5,33,232 7,37,232 *Completed in Q1FY24 10#11Geographic presence Stronghold in the South and West India market • Focus on developing the existing markets • Creating new channels in under and non-penetrated geographies • Dealer-focused model 。 Dealers categorisation based on size, business and potential 。 Dedicated support 。 Products suited to customers' need 。 Credit extension Maharashtra Orissa 230+ Dealers H HARIOM PIPES SCAFFOLDINGS | COILS 165+ Dealers Karnataka Telangana Andhra Pradesh Tamil Nadu across 26 Districts in Karnataka 30+ Dealers across 14 Districts in Kerala across 33 Districts in Telangana 140+ Dealers across 26 Districts in Andhra Pradesh 60+ Dealers across 32 Districts in Tamil Nadu 650+ Total No. of Dealers 11#12Clientele A customer-centric approach to developing customised solutions Supplier of choice to marquee clients SRC COMPANY INFRA PVT.LTD. TATA Concorde Dukes Group ENERGY ANALMATED TATA PROJECTS H HARIOM PIPES SCAFFOLDINGS | COILS CHOURASIA SVS PROJECTS INDIA PVT. LTD. EMER, ONTRACTORS AND INDWELL SRI ADITYA HOMES PRIVATE LIMITED SRR What do customers want New products and competitive pricing Convenience Inspiring Growth AMARA RAJA Gotta be a better way Technical support BSG kap MPOWER INFRATECH Solution for new applications How do we serve Development of new grades and sizes 1,500 points of sales Support team for training of fabricators Customer Service Team for key customers 12#13Performance Sustained growth and profitability showcases market resilience and adaptability HHARIOM PIPES SCAFFOLDINGS | COILS Sales (MT) Average Price per MT 109,085 65,391 59,010 65,845 60,740 44,888 41,841 35,818 Blended EBITDA per MT 8,929 5,759 5,329 11 7,585 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 Financial year data Sales volume growth led by capacity increase and higher utilisation even during COVID-19 Sales and EBITDA per MT benefiting from higher share of finished steel and value-added products 2.7x Capacity increase during FY20-FY23 2.4x Sales Volume increase during FY20-FY23 42% Increase in EBITDA per MT during FY20-FY23 13#14Leadership team Strong team led by an Independent Board H HARIOM PIPES SCAFFOLDINGS | COILS Board of Directors Pramod Kumar Kapoor Chairman & Independent Director Rajender Reddy Gankidi Independent Director Key Managerial Personnel Rupesh Kumar Gupta Managing Director Chirag Partani CS & CCO Rupesh Kumar Gupta Managing Director Shailesh Gupta Whole Time Director Soumen Bose Independent Director Sunita Gupta Non-Executive Director Shailesh Gupta Whole Time Director Amitabh Bhattacharya Sneha Sankla Independent Director CFO 14#15Growth Drivers#16Industry India's steel industry shines amidst economic growth and infrastructure investments Drivers of Growth in India Steel • Growing Per Capita Income Market • Government focus on infrastructure • Increasing discretionary spending Structural Shift from unorganised to organised production of steel pipes and tubes H HARIOM PIPES SCAFFOLDINGS | COILS Steel Industry Growth Demand [in Million Tonnes] • Growth 8.2% 7.4% 6.2% 136.97 changes in 128.85 119.86 steel pipe industry ⚫ Changing usage preference towards hollow pipes for higher strength, cost-effectiveness and aesthetics Tailwinds • Urban demand and affordable housing driving residential sector growth, heightened construction activity in rural and semi-urban areas 2022 2023 2024P for end-user segments • Infrastructure and renewable energy driving the capital goods sector • Private consumption fueling growth in automotive and consumer durables 16#17Strategy Forward integration and marketing focus to drive growth H HARIOM PIPES SCAFFOLDINGS | COILS . Production Ramp Up Expanded billets (104,232 MT) and HR Strips capacity (124,000 MT) at Telangana Newly acquired GP/GC plant at Tamil Nadu (180,000 MT) x O Capacity Expansion . • Doubling capacity of Sponge Iron unit to 72,000 MT at AP in FY24 Expanding MS Tubes capacity from 84,000 to 132,000 MT in FY24 New GP/GC plant at Mahabubngar, Telangana (120,000 MT) in FY24 Projected Capex of Rs 250 Crore • Marketing and Branding Increasing share of Value Added Products Increasing Social Media presence Geographic Expansion Expanding geographical presence with diverse products, targeting high- growth markets 17#18Projects update Growth projects driving growth and sustainability HHARIOM PIPES SCAFFOLDINGS | COILS Growth Projects • Completed expansion of Pipe Mill from 84,000 MT to 132,000 MT ● Installed GP Plant with a capacity of 120,000 MT at Mahabubnagar, TS, in June 2023 • Expansion of Sponge Iron unit at AP ongoing; expected to be completed in FY24 ESG • Zero Liquid Discharge system installed at Mahabubnagar, TS • Pipe Mill at TS fully powered by Solar Power, the only one of its kind in India CET 18#19RIOM Financial Overview HARIOM#20P/L summary Strong performance growth sets the foundation for future H HARIOM PIPES SCAFFOLDINGS | COILS Net Revenue (Rs. Crore) EBITDA (Rs. Crore) CAGR: 41% CAGR: 36% 644.46 433.28 254.56 161.15 PAT (Rs. Crore) -Margin (%) CAGR: 53% 82.74 7.36% 7.19% 5.96% 58.79 4.95% 46.32 34.98 31.90 • Volume-led revenue growth 23.92 15.16 7.97 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EPS (Rs.) CAGR: 32% 10.66 6.02 Return on Capital Employed (ROCE) 18.83 18.30 38.2% 28.0% 27.7% Return on Equity (ROE) 31.6% 21.4% 16.5% 14.7% 12.3% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Higher sales and a better product mix drove increase EBITDA • EPS, ROCE and RoE in FY23 impacted by higher equity base from preferential allotment done in March 2023 20 20#21B/S summary Strong financial profile H HARIOM PIPES SCAFFOLDINGS | COILS Rs. 130 Crore Particulars (Rs. Crore) FY20 FY21 FY22 FY23 Gross proceeds from IPO in April 2022 Total outside liabilities (ex deferred tax) 89.15 99.37 111.73 329.78 Net Worth 48.30 70.79 101.03 375.17 Ratios (x) Net Debt-to-EBITDA Ratio 2.33 2.11 1.43 2.30 Total Outside Liabilities/Tangible Net 1.85 1.40 1.11 0.88 Worth Net debt to equity 1.41 1.13 0.87 0.79 Interest Coverage Ratio 2.77 3.85 5.89 7.96 Rs. 190 Raised from issue of shares and warrants (convertible to equity within 18 months. from March 31 2023) CRISIL A-/Stable/CRISIL A2+ CRISIL Ratings on bank facilities upgraded in March 2023 from 'CRISIL BBB+/Stable/CRISIL A2' Crore 21 22#22Sources and uses of cash Investing in our growth Sources of Cash, FY23 Borrowings -ST 110 Rs. Crore Borrowings - LT 93 Total Sources 487 Rs. Crore Funds from operations 56 Increase in Cash Balance 104 IPO Proceeds and others 228 Working Capital 159 Uses of Cash, FY23 Rs. Crore H HARIOM PIPES SCAFFOLDINGS | COILS Fixed Assets 182 Total Uses 383 Rs. Crore Advances with Capital Good Suppliers 42 22 22#23Thank You HHARIOM PIPES SCAFFOLDINGS | COILS Amitabha Bhattacharya HARIOM PIPE INDUSTRIES LIMITED [email protected]