#1K.P.I. GLOBAL INFRASTRUCTURE LIMITED CIN: L40102GJ2008PLC083302 Since 1994 R кр GROUP www.kpgroup.co KPI/INV-PPT/AUG/2020/92 Date: August 7, 2020 To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Scrip Code: 542323 Sub.: Investor Presentation/Key highlights of FY20 performance Dear Sir, Apropos the captioned subject, please find attached herewith the Investor Presentation along with the key highlights of the FY20 performance of the Company. This is for your information and records. Thanking You, Yours faithfully, SM Power of Nature For K.P.I. Global Infrastructure Limited GLOBA STRUCTURE LI SURAT Raj Upadhyay Company Secretary & Compliance Officer Reg. Office: KP House', Opp. Ishwar Farm Junction BRTS, Near Bliss IVF Circle, Canal Road, Bhatar, Surat- 395017, Gujarat, India. Tel: +91-261-2244757, Fax: +91-261-2234757 E-mail [email protected], Website: www.kpiglobal.kpgroup.co#2KPI Global NFRASTRUCTUR M TED Since 1994 кр GROUP www.kpgroup.co KPI Global INVESTOR Infrastucture Ltd PRESENTATION BSE - KPIGLOBAL - 542323 www.kpiglobal.kpgroup.co#3Inside the document 1. FY20 Highlights 2. i. Operational Highlights ii. Financial Highlights iii. Management Comments iv. Impacts from COVID-19 Corporate Profile i. Introduction & Snapshot ii. Corporate Ethos iii. Management Team 3. Business Model i. Business Segments 4. Solar Space i. Solar is the future ii. IPP ii. Driving factors. iii. CPP 5. Market Statistics iv. Industrial Plot Sale V. Our Strengths 6. Get in touch & Disclaimer vi. KPI Going Forward vii. Orderbook#4Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET FY20 Operational Highlights 01/34 Section: FY20 Highlights INDEPENDENT POWER PRODUCER (IPP) Capacity Additions: 25.762 MW, up 172% Cumulative Capacity: 40.762 MW POWER GENERATION Units generated FY20: 4.61 Cr Units, up 147% y-o-y Units generated FY19: 1.87 Cr Units CAPTIVE POWER PRODUCER (CPP) SALES Capacity Executed: 3.12 MW Cumulative Capacity Executed: 6.20 MW KPI Global Infrastructure Ltd Portfolio CUF : 19.10% on a portfolio of 40.762 MW#5Investor Presentation March 2020 Standalone Profit & Loss 02/34 Section: FY20 Highlights FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Particulars FY20 Revenue from Operations Total Income Total Operating Expense EBITDA Interest Cost Depreciation and Amortisation Profit before Taxes Profit After Taxes KPI Global Infrastructure Ltd ▲ 32.02% Revenue from Operations 3 years' CAGR EBITDA 15.48% 3 years' CAGR FY19 FY18 (Rs. in crores) 59.28 34.51 31.56 59.55 34.62 31.60 39.64 23.66 21.03 27.32 21.17 18.60 7.84 3.87 2.98 7.49 4.47 8.08 11.99 12.83 7.54 6.50 8.90 7.39 6.44% Profit After Taxes 3 years' CAGR#6Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Standalone Balance Sheet Particulars Shareholders Fund Non Current Liabilities Current Liabilities FY20 FY19 FY18 (Rs. in crores) 98.06 99.04 49.29 124.49 43.84 45.58 75.91 18.36 12.44 Total 298.46 161.24 107.31 Non Current Assets 217.05 102.58 82.67 Current Assets 81.41 58.66 24.64 Total 298.46 161.24 107.31 03/34 Section: FY20 Highlights KPI Global Infrastructure Ltd#7Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Standalone Cash Flow Statement Particulars Cash Flow from Operating Activities FY20 FY19 (Rs. in crores) 30.24 -17.06 Cash Flow from Investing Activities -109.25 -15.14 Cash Flow from Financing Activities 87.30 33.07 Net increase/(decrease) in cash and cash equivalents 8.29 0.87 Cash and cash equivalents at the beginning of the year 1.99 1.12 Cash and cash equivalents at the end of the year 10.28 1.99 04/34 Section: FY20 Highlights KPI Global Infrastructure Ltd#8Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Consolidated Profit & Loss 05/34 Particulars Revenue from Operations Total Income Total Operating Expense EBITDA Interest Cost Depreciation and Amortisation Profit before Taxes Profit After Taxes FY20 FY19 FY18 (Rs. in crores) 59.28 34.51 31.56 59.55 34.62 31.60 39.72 23.66 21.03 27.24 21.17 18.60 7.84 3.87 2.98 7.48 4.47 8.08 11.92 12.83 7.54 6.44 8.90 7.39 Section: FY20 Highlights KPI Global Infrastructure Ltd ▲ 72% Revenue from Operations YOY growth 29% EBITDA YOY growth -28% Profit After Taxes YOY growth This was on account of change in Depreciation method & deferred Tax effect.#9Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Consolidated Balance Sheet 06/34 Particulars Shareholders Fund Non Current Liabilities Current Liabilities Total Non Current Assets Current Assets Total Section: FY20 Highlights KPI Global Infrastructure Ltd FY20 FY19 (Rs. in crores) 98.00 99.04 124.47 43.84 75.91 18.36 298.38 161.24 215.97 102.58 82.41 58.66 298.38 161.24#10Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Consolidated Cash Flow Statement Particulars Cash Flow from Operating Activities Cash Flow from Investing Activities FY20 39.87 (118.78) FY19 (Rs. in crores) (17.06) (15.14) Cash Flow from Financing Activities 87.30 33.07 Net increase/(decrease) in cash and cash equivalents 8.39 0.87 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 1.99 1.12 10.37 1.99 07/34 Section: FY20 Highlights KPI Global Infrastructure Ltd#11Investor Presentation March 2020 Ratios 82.60% 08/34 Section: FY20 Highlights FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET 69.11% 70.76% 33.30% 32.98% 31.33% 61.16% 58.86% 45.88% 2017-18 2018-19 2019-20 2017-18 2018-19 2019-20 Gross Profit Margin Operating Profit Margin 2017-18 2018-19 2019-20 EBITDA Margin 6.25 5.46 3.48 12.67% 11.99% 9.63% Ili 7.79% 6.23% 2.92% KPI Global Infrastructure Ltd 2017-18 2018-19 2019-20 Interest Coverage Margin 2017-18 2018-19 2019-20 Return on Capital Employed 2017-18 2018-19 2019-20 Return on Equity#12Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Management commentary 09/34 Section: FY20 Highlights KPI Global Infrastructure Ltd . The Financial year 2019-20 has been an extremely exciting one for the company with its core businesses adding momentum. KPIGIL seen a gradual and steady increase of revenue contribution from its key segment-Solar Power sale business. When the industry saw slowdown in installation growth leading to lowest growth in solar power generation in past six years, our company registered substantial increase in generation due to addition of 25 MW to our existing portfolio of solar power plant in the 3rd quarter of the FY 2019-20. Our capacity increased by 2.6 times from 15 MW to 40 MW leading to 150% growth in our power generation revenue, which was major contributor to our overall YoY revenue growth of 72 %. The contribution of power sale segment provides the strong stability to our overall revenue this year and is expected to continue in future. Our solar power plant sale segment also showed substantial growth of 52% YoY registering highest sales in the segment since the advent of this segment. Though we expected further increase in this segment, but due to overall pandemic situation in the couple of months of last quarter the momentum of our growth slowed marginally, which is expected to cover up in the coming quarters of next financial year. As stated in our HY key highlights, the company has cautiously taken steps toward reduction in sale of Industrial plot business segment and shifts its focus more toward sustainable segments (Power Sale & Power plant sale). Thereby there was a decline of 5% in our plot sale segment. The company registered remarkable growth of 78% in the absolute operating profits and thereby was able to marginally improve its strong operating profitability margin to 46%. In-spite of reduction in plot sale business which was major contributor in profitability in the past years, the company was able to maintain its strong profitability trajectory. The increase in power sale segment, which has high profit margins, not only compensated toward the reduction in profits from plot sale segment, but also provided long term sustainability to our revenue and profits. Net profit after tax of the company decreased due to impact of deferred tax on account of higher depreciation as per Income Tax Act, but were able to record healthy operating profit. The company had wisely decided to opt for tax regime under the new section (115BAA) which was introduced through Taxation ordinance 2019. Under this section. company does not have to pay any tax this year on account of heavy depreciation due to substantial addition to fixed assets. The long term vision to add capacity to its owned power plant will help the company to take the benefits of depreciation under this section in coming years and is expected to surpass the forgone MAT credit it had earned in the past.#13Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Coping up with COVID-19 10/34 Section: FY20 Highlights GENERAL OPERATIONS Electricity generation has been unaffected due to COVID-19. There was some impact on Electricity off-take but nothing detrimental. No major impact as solar power units gets first set-off against consumption as per solar policy. Receiving regular monthly payments from clients, no major delay in payments. PROJECTS UNDER-CONSTRUCTION • • All construction activity was mandatorily suspended from March 24, 2020 as per the sweeping lockdown announced by GOI. Construction activity is resumed presently. All projects in hand were almost completed, hence no cost overruns. Some revenue with respect to CPP Segment was deferred and could not be booked in FY2019-20, due to unmet project completion milestones. Outlook for business development, in CPP, has taken a dip given the slowdown in business environment due to COVID-19 and a deferral in CAPEX plans of our clients. FINANCIAL IMPACT & RESOURCES . • The company does not foresee any strain on its financials due to this pandemic. No material Impact on sale of power business whereas marginal impact on receivables from CPP segment. No major impact experienced on the access of capital for future IPP projects, only minor operation delays due to shutdown of workplaces. KPI Global Infrastructure Ltd#14Corporate Profile İ. ii. INTRODUCTION & SNAPSHOT CORPORATE ETHOS iii. MANAGEMENT TEAM#15Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET About KPI Global 12/34 Section: Corporate Profile KPI Global Infrastructure Ltd KPI Global Infrastructure (KPI) is a multi-dimensional solar energy player, with interest in power generation as an IPP, turnkey solutions for CPP and O&M services. All the services are rendered under the brand name of 'Solarism'. 85% 85% of PPAs with AA- or higher rated counter-parties Incorporated in 2008 and listed in 2019, KPI is part of the KP Group established in 1994 (Surat, Gujarat) which has interests in Solar Energy, Wind Energy (BSE: KPEL) Telecom Infrastructure among others; with a total turnover of INR 2.5+ billion. Long-term focused PPA Portfolio (15 year+) Dedicated power evacuation infrastructure for 100% portfolio ~7.48 MW CPP Order-book of ~7.48 MW 6.20 MW Cumulative capacity energised for CPPS Gujarat-focused portfolio ~41 MW Solar power generation portfolio of 40.76 MW#16Investor Presentation March 2020 Corporate Ethos 13/34 Section: Corporate Profile KPI Global Infrastructure Ltd FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET VISION "Power India by the power of Nature" MISSION Our goal is to accelerate the adoption of solar technology across India to conserve our environment and provide an environmentally friendly & sustainable power supply. For this we develop sustainable solar renewable energy generating models for our customers & thereby transit them from fossil fuel energy to Solar energy. VALUE Ethical, Transparent, Equal- Opportunity to all, Diversity (gender, geography, religion, language, etc.), Respect for the individual, Teamwork, passion, Environmentalism, Integrity, Loyalty, Commitment#17Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Management Team 14/34 Section: Corporate Profile KPI Global Infrastructure Ltd MR. FARUK G PATEL Chairman & Managing Director Mr. Faruk G. Patel, the Chairman & Managing Director is the founding promoter of our company. He is one of the highly acclaimed entrepreneurs and visionary corporate leaders in the renewable energy sector. His business journey started by a small venture, engaged in logistic and then moved on to construction and infrastructure, finally forayed into Renewable energy business, thereby becoming the promoter & founder member of KP Group of companies.. KP Group of Companies are engaged into various businesses mainly Solar, Wind, Fabrication and Galvanising and so on. During his entire business career, he has always emphasized upon pecuniary as well as the social objectives, pursuant to which he has earned fame and social acclamation from the community and the fraternity. Considering his achievements and contributions made by him, he has also been awarded as 'Legends of Surat 2018' by Gujaratmitra, 'The Leaders Award 2019' by Mantavya News and also 'Business Icon 2018' by Times Group. MRS. BHADRABALA D JOSHI Director Mrs. Joshi has done his B. Pharm from Gujarat University and LLB from South Gujarat University. Mrs. Joshi has been an Advocate on the state roll maintained by The Bar Council of Gujarat. At present, she is one of the panel members of Approved Advocates of Nationalized Banks, in Surat, such as IDBI, Dena Bank, Canara Bank, Central Bank of India, Syndicate Bank, and Punjab National Bank. She has been serving as Director on the board of the company since January 2018.#18Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Management Team 15/34 Section: Corporate Profile KPI Global Infrastructure Ltd MR. SHAHEEDUL HASAN Chief Operating Officer Mr. Hasan, has been actively and efficiently dealing and handling all the verticals and segments of the operational units of our organizations. He also looks after project implementation and execution with the utmost accuracy. He has a Bachelor's degree in Science (Engineering) from internationally acclaimed Aligarh Muslim University. He has a rich work experience of more than 30 years in R&D, telecom, and solar industries. In the past, he has been associated with reputed organizations like ISRO as a Scientist, Siemens, Tata Telecom, Airtel, Aircel. Before joining KP Group he was Vice President and CTO in Reliance Communications Limited. MR. RAJNIKANTH SHAH Director Mr. Rajnikant H. Shah, Director of the Company, is also chairman of Shreeji Group of Companies and also holds strong presence in the Cement Industry, Construction and Land Development, Automobile Industry and other businesses. He is also socially engaged and an active member of President of Khadaita Bandhu Samaj, Surat City Gymkhana (A Respected Sport Club in Surat), Lalbhai Contractor Stadium, Chamber of Commerce and Industry, etc. He has completed B.Com from Barfiwala College, Surat. MR. SALIM YAHOO Chief Financial Officer Mr. Yahoo is responsible for heading, managing, and controlling all the accounts & financial functions of the company. He brings vast work experience and expertise of more than 22 years in the fields of finance and accounts. He has been instrumental in establishing fiscal discipline in the company and unparalleled confidence in the team by utilizing his sound financial & analytical skills, and advisory intellect. He holds a Bachelor's degree in Commerce from the University of Mumbai and also a Diploma in Business & Administration from Symbiosis center for distance learning. In the past, he has worked with CRISIL Limited as Director - Rating MCG, HDFC Bank, Axis Bank, Bajaj Alliance Insurance Company Limited, Bombay Mercantile Co-Operative Bank, among others.#19Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Management Team 16/34 Section: Corporate Profile KPI Global Infrastructure Ltd MR. MOH. SOHIL YUSUFBHAI DABHOYA Whole Time Director Mr. Dabhoya supervises overall business and specifically the sales, marketing & administration department of the company. His skills include problem-solving, decision making, management, leadership, excellent communication, and negotiation skills. He has a B.Com degree from Veer Narmad South Gujarat University and MBA from the well-known Sikkim Manipal University. His work experience has been very vast and versatile. he has been engaged with the company for more than 12 years. MR. CHANDRAVADAN RAVAL Vice President (Projects)) Mr. Chandravadan Ravall heads execution of the Projects of our Company and is technically extremely sharp with deep understanding in his field. He has 35 years of experience in the field of Electrical Engineering and administration of all the activities of distribution licensee. He holds Bachelor degree in Electrical Engineering from Saurashtra University, Rajkot, (Gujarat), India. Prior to joining our Company, he was associated with DGVCL (Dakshin Gujarat Vij Company Limited), a subsidiary company of Gujarat Urja Vikas Nigam Limited (GUVNL), formerly known as Gujarat Electricity Board (GEB) the Government of Gujarat Undertaking, as a Superintending Engineer (SE). During his tenure with DGVCL, he has headed various fields in Southern Gujarat region in the industrial, rural and urban sections. MS. RAJVI UPADHYAY Company Secretary & Compliance Officer Ms. Rajvi Upadhyay has been responsible to head, manage, look after and channelize all the Secretarial functions and statutory compliances of the Company. She plays very pivotal role of building up the long lasting and trustworthy relationship between the company and the stake holder. She has completed B.Com (Honours with Finance) from Veer Narmad South Gujarat University and also a qualified Company Secretary from the Institute of Company Secretaries of India. Prior to Joining our Company, she had worked and served GTPL DCPL Private Limited as a Company Secretary.#20Business Model Business Segments İ. ii. IPP iii. CPP iv. Industrial Plot Sale V. Our Strengths vi. KPI Going Forward vii. Orderbook#21Investor Presentation March 2020 Business Segments FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET 3 BUSINESS SEGMENTS 18/34 Section: Business Model IPP - INDEPENDENT POWER PRODUCER 47% sales contribution in FY20 CPP - CAPTIVE POWER PRODUCER 44% sales contribution in FY20 KPI Global Infrastructure Ltd Sale of Industrial Plots(for turnkey projects) 9% sales contribution in FY20#22Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET IPP - Independent Power Producer KPI is primarily engaged in the generation & sale of solar energy, as an Independent Power Producer, under its brand 'Solarism'. The company sells clean energy directly to third parties through long-term bilateral agreements, under the open access policy. These PPAs are priced at a discount to prevailing DISCOM rates, usually ~7% lower, creating a win-win situation for the company and its clients, most of which are energy-intensive industries. 19/34 Section: Business Model KPI Global Infrastructure Ltd HIGHLIGHTS OF IPP PORTFOLIO ~ 41 MW Solar portfolio 5.46 kWh/m2/day Solar Radiation (Source: Actual Measured data from Solarism Site) 100% portfolio equipped with dedicated power evacuation 20% CUF 5 years average Single-site portfolio ~ 8 MW 2 additional PPA signed#23Investor Presentation March 2020 2020 IPP - Independent Power Producer 2019 2018 20/34 2017 2015 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Section: Business Model 2014 2014 KPI Global Infrastructure Ltd 2013 2013 2017 2018 2019 2020 Successfully commissioned Additional 25MW of capacity by aggregating 40.762MW under Independent Power Purchase (IPP) category Successfully commissioned 15MW of capacity in Phase-1 under Independent Power Purchase (IPP) category Received GEDA Registration Certi cate for developing next 25 MW Solar Power Capacity at Solarism site Signed Facility Agreement with Power Finance Corporation Ltd (PFC) to part Finance 25MW solar project Signing of MOU with Government of Gujarat in Vibrant Gujarat 2017 for next 20MW. Received GETCO approval for next 15 MW (Total 30 MW) evacuation Received GETCO approval for laying of second circuit on 66 KV Transmission line using Panther Conductor 2015 Signing of MOU with Government of Gujarat in vibrant Gujarat 2015 for next 15MW Start of 66KV Transmission Line construction for power evacuation MOU signed with Government of Gujarat in Vibrant Gujarat 2013 for 15MW of Solar Power Plant#24Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET UNITS GENERATED, 5 YEAR CHART IPP - Independent Power Producer 5,00,00,000 4,00,00,000 3,00,00,000 2,00,00,000 21/34. 1,00,00,000 4,61,52,984 1,87,20,112 4 year CAGR - 276.95% 1,30,83,117 60,79,177- 2,28,595 FY20 FY19 FY18 FY17 FY16 Section: Business Model SOLARISM PLANT KPI Global Infrastructure Ltd Sudi, Bharuch 100% PPAs with Investment Grade rated counter-parties.#25Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET IPP Clientele 22/34 MAFATLAL INDUSTRIES LIMITED MEGHMANI ORGANICS LIMITED SINCE 1905 Mafatlal® MOL CHEMISTRY OF SUCCESS AT WORK LARSEN & TOUBRO LIMITED COLOURTEX INDUSTRIES PRIVATE LIMITED colourtex® Section: Business Model UPL LIMITED KPI Global Infrastructure Ltd UPL OpenAg™ BEST PAPER MILLS LIMITED B#26Investor Presentation March 2020 COUNTER PARTIES FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET CAPACITY (MW) PPA TENURE IPP Clientele Mafatlal Industries Ltd 2.587 3 years extendable upto 15 years Best Paper Mill Ltd (unit 1) 1.250 Best Paper Mill Ltd (unit 1) 2.000 Meghmani Organics Ltd 1.250 Meghmani Organics Ltd 1.350 3 years extendable upto 15 years 3 years extendable upto 15 years 3 years extendable upto 15 years 3 years extendable upto 15 years Meghmani Organics Ltd 2.000 Larsen & Turbo Ltd - HE (East) 1.500 3 years extendable upto 15 years 15 years Larsen & Turbo Ltd - HE (West) 1.500 15 years L&T MHPS Turbine and Generators Pvt Ltd 2.575 15 years 23/34 Colourtex Industries Pvt Ltd 6.250 20 years Colourtex Industries Pvt Ltd 5.000 20 years Section: Business Model United Phosphorous Ltd 2.200 15 years United Phosphorous Ltd 1.800 15 years United Phosphorous Ltd 7.000 15 years United Phosphorous Ltd 2.500 15 years KPI Global Infrastructure Ltd Total 40.762 --------- ------- ----- -------- Long-term tenure focused portfolio ------- Focus on well-capitalized and highly profitable counter-parties 85% portfolio with AA- or higher credit-rated counter- parties#27Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET CPP – Captive Power Producer 24/34 Section: Business Model KPI is engaged in providing turnkey solar EPC services. It involves developing, transferring, operating & maintaining grid-connected solar power projects on behalf of third parties for their captive consumption. Commonly, these projects are developed on land in possession of KPI which is either sold or leased to the CPPS. HIGHLIGHTS OF CPP PORTFOLIO 6.20 MW capacity executed 2 7.48 MW order in hand Our clients, usually power-intensive industries, benefit by captive generation through reduced power costs and meeting their Renewable Purchase Obligations (RPO). 100% capacity using KPIs power evacution infrastructure PROJECTS EXECUTED TIMELINE 2019 3.08 MW capacity energised 2020 3.12 MW capacity energised KPI Global Infrastructure Ltd 100% order-book to be completed in CY#28Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Sale of Land 25/34 Section: Business Model INDUSTRIAL PLOT SALE KPI Global Infrastructure sells land parcels to third parties, which are leased back for foraying into solar power generation for 25 years. Accordingly, the company is paying a fixed rental to the landowners as per the lease agreement. The company had established an initial solar power plant of 5 MW on the plots of leased land. Since the initial needs have already been fulfilled, the company has reduced quantum as it needs owned land for project finance. Highlights of O&M Portfolio: As a one-stop solution provider KPI also provides operations and maintenance services solar power plants it energises under the CPP business. O&M is provided as a bundled service to CPP, where usually intial 2-3 years of O&M are provided (inclusively) as part of turnkey services to CPPS. CPP business directly drives the growth of this stream. However, the existing portfolio creates an annuity-based income. Land Bank of 250+ acres KPI Global Infrastructure Ltd#29Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Our Strengths FAVORABLE GEOGRAPHICAL LOCATION OF THE SOLAR POWER PLANT Factors: Located in favourable solar radiation, area which shadow free and open and receives sunrays from all the sides without any obstacles. Easy availability of soft water, nearby surrounding fertile area of black cotton soil land which reduces dust and hence lessor maintenance costs, surrounded by Dahej, Vilayat and Vagra GIDCs & skilled manpower also available easily. ESTABLISHED INFRASTRUCTURE FOR EVACUATING POWER Existing 66 KV transmission line (Panther line) from the site to Amod substation of GETCO & evacuation approval received from GETCO for transmitting power upto 70 MW. Connectivity agreement and O&M agreement signed with GETCO for a period of 25 years. HIGHER PER UNIT REVENUE REALIZATION AND ASSURED REVENUE FROM PPAS Selling of power at high rate: Sale of power at N₹ 6.77 per unit, which are priced at around 7% discount to the prevailing per unit price of the DISCOMS, less other adjustments. Assured source of revenue by having entered into bilateral PPAs for off-take of the entire existing generating capacity of 40.76 MW. 26/34 OPTIMAL DESIGN AND STRUCTURE OF THE SOLAR POWER PLANT EXPERIENCED PROMOTER AND MANAGEMENT TEAM EXISTING SYNERGIES WITHIN THE PROMOTER GROUP Section: Business Model KPI Global Infrastructure Ltd Design: Solar Array Layout is planned, connected and optimized in a way to utilize the optimum energy of the sunrays in generating power even within the fading hours of Sunlight High-resolution, rotating CCTV cameras, are continuously monitoring the location which enables taking of corrective action in time. Promoter is well equipped with vast industry experience and is supported by well qualified staff having the renewable energy industry experience Experience and relationships of the management team has improved the quality of services and facilitated access to customers. KP Buildcon Private Limited is involved in carrying out EPC activities, has the required manufacturing expertise of steel structures and has provided the Company with the required module mounting structure (MMS) and other steel structures needed, hence reducing costs. Promoter group entity involved in fabrication and galvanizing, is used as a vendor for construction of module mounting structure#30Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET KPI Going Forward CAPTIVE POWER PRODUCER Contributes to top-line STRIKING A BALANCE Capital-light Non-recurring nature of revenue coupled with recurring ancillary revenue streams INDEPENDENT POWER PRODUCER Contributes to bottom-line Capital-intensive Annuity-based income 27/34 Achieving brisk topline & bottom-line growth through CPP business. Section: Business Model Building reserves to be invested in IPP assets о о о Achieving annuity-based income and strong bottom-line through IPP business. Cumulative portfolio target - 500 MW (3/5 year target) Targeted - 15 MW addition by 2021 о о Targeted 80 MW cumulative capacity addition by 2021 KPI Global Infrastructure Ltd#31Investor Presentation March 2020 Order Book 28/34 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET CPP UNDER DEVELOPMENT: ~7.48 MW IPP ASSETS UNDER DEVELOPMENT: ~40 MW Expected to be commissioned in FY20-21 Expected to be commissioned in FY20-21 Section: Business Model Cumulative capacity energised post commissioning ~13.68 MW Cumulative portfolio after commissioning 80.76 MW KPI Global Infrastructure Ltd#32Indian Solar Space İ. Solar is the future ii. Driving features#33Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Solar is the future Renewables are increasingly becoming an acceptable and preferred source of energy. The cost of producing solar energy has fallen substantially in recent years, making it more competitive (even cheaper) than conventional fossil- based energy sources. India's cumulative installed solar capacity reached 34.6 GW as of March 31, 2020, as per the CEA. For the foreseeable future, the government of India has set up an ambitious target of 100 GW cumulative solar energy installations till FY2022, to achieve the same, capacity additions would need to triple in the next 2 years. VELOCITY OF RENEWABLE CAPACITY ADDITION (CAGR FY14-20) 54% Solar 10% Wind 2% 10% Biomass, Small Hydro and Waste to Energy Large Hydro 30/34 Section: Indian Solar Space KPI Global Infrastructure Ltd • With this, India has expanded its solar capacity additions more than 13 times 15 in the last 6 years. Achieving a staggering CAGR of 54% from 2.6 GW in FY2014 to 34.6 GW in FY2020. -8x growth -2x growth 100 15 Other RE . India is among the top five clean energy producers globally. The country plans to have 40% of installed power generation capacity on clean sources by 2030. 34 -1.6x growth Solar 38 60 60 Wind CY2020 CY2022#34Investor Presentation March 2020 Driving factors FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Reduced costs Policy support Awareness about climate change Accessibility 31/34 Section: Indian Solar Space With utility scale power generation, technology advancement and efficiencies, cost of producing solar power has undercut the average power purchase costs of DISCOMs. Even without government incentives, it is one of the cheapest sources of power. With major thrust on renewable energy from GOI including - Open Access Regulations, Renewable Purchase Obligations and financial support including accelerated depreciation and incentives bode well for the sector. Have led governments, corporates adopt clean energy. India's participation in the Paris Climate Agreement have led it to commit 40% power generation from non-fossil based sources by 2030. Renewable energy, such as solar, can be generated in remote locations making it a much more distributed and hence scalable resource. Additionally reducing battery costs and improved battery- based power storage infrastructure are helping the cause. KPI Global Infrastructure Ltd#35Investor Presentation March 2020 Market Statistics AS ON 7th AUGUST 2020 32/34 Section: Market Statistics KPI Global Infrastructure Ltd FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET SHAREHOLDING SUMMARY FOR KPI GLOBAL INFRASTRUCTURE LIMITED 49.75 Current Price 51.47% 48.53% Promoter shareholding Public shareholding 62.95/20.50 52 Week High/Low 89.88 Cr Market Capitalization 1.80 Crore Shares Outstanding 542323 BSE Scrip Code#36Investor Presentation March 2020 Get in touch 33/34 Section: Contact Us KPI Global Infrastructure Ltd FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET MS. RAJVI UPADHYAY Company Secretary and Compliance Officer [email protected]#37Investor Presentation March 2020 FINANCIAL HIGHLIGHTS COMPANY PROFILE INDUSTRY AND MARKET Safe Harbour 34/34 Section: Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of KPI Global Infrastructure Limited ("the company" or "KPI Global Infrastructure Limited"), which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company's business, its competitive environment and politicaal, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. This presentation may not be copied or disseminated, in whole or in part, and in any manner. KPI Global Infrastructure Ltd