#1KAMDHENU STEEL Sampurna Suraksha Ki Guarantee KAMDHENU LIMITED INVESTOR PRESENTATION January 2024 INTO ORBIT. GAINING MOMENTUM. Great Place To WorkⓇ Certified OCT 2023 - OCT 2024 INDIA#2SAFE HARBOR KAMDHENU Samouma Suraksha Ki Guarantee STEEL This presentation and the accompanying slides (the "Presentation"), which have been prepared by Kamdhenu Limited (the "Company"), have been prepared solely for 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. 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#3WE ARE INDIA'S LARGEST BRANDED TMT BAR PLAYER KAMDHENU Samouma Suraksha Ki Guarantee Brand Turnover of Rs. 21,000 crores +; CAGR Growth of 18% over the last decade STEEL Key BRANDS over the years 80+ Franchise Units to manufacture Steel Rebars, Structural Steel Products & Colour Coated Profile Sheets KAMDHENU is Largest TMT selling brand in India, in the Retail Segment KAMDHENU na Suraksha Ki Guarant STEEL Converted steel commodity into branded product becoming India's Largest TMT Steel Bars brand with in-house capacity of 120,000 MT p.a. State-of-the-art TMT Technology 8,500+ Dealers across India 4% less weight per meter than normal and 20% more strength 3 KAMDHENU NX Next Generation Interlock Steel KAMDHENU PAS10000 KAMDHENU COLOUR MAX COLOUR COATED METAL SHEETS#4OUR JOURNEY 2022-2023 2019-2020 2018 2016-2017 2011-2015 2006-2010 2001-2005 1994-2000 1994 Incorporation of Kamdhenu Ispat Limited 1995 Production of Steel Bars Certified for international quality standards ISO 9001 & BIS 1786:1985 - 2004 Innovated franchisee business association model 2005 Adopted Modern Technology of CRM Belgium To Manufacture TMT Steel Bars 2006 IPO Listed at NSE/BSE 2008 - Forayed into Decorative Paints Business COLOUR DREAMZ KAMDHENU Samouma Suraksha Ki Guarantee STEEL 2023-2024 2023 - The company has been awarded the "Great Place to Work certification" 2013 Launched Kamdhenu SS10000 premium TMT bars 2014 Launched Kamdhenu Structural Steel 2015 Became largest TMT selling brand in India 2016 Name Changed from Kamdhenu Ispat Ltd. to Kamdhenu Ltd. positioned as branding and marketing company 2017 Launched Kamdhenu Nxt - TMT interlock steel for next generation 2018 - Expansion of marketing network through enhanced number of dealers and distributors 2019 Own Manufacturing Expansion 2020 Launched Kamdhenu PAS10000 Steel Bar Board approved the scheme of arrangement 2021- Filed Scheme of Arrangement with NCLT, Chandigarh Bench - 2022 Approved Scheme of Arrangement by NCLT, Chandigarh Bench 2023 - Listing of Equity shares of Kamdhenu Ventures Limited (Paint Business) pursuant to the Scheme of Arrangement on NSE and BSE on 24th January 2023 4#5STRONG PRODUCT PORTFOLIO FOR ALL USER SEGMENTS Kamdhenu - Nxt TMT Next Generation Interlock Steel and has got the angular double rib design having obtained all the rights to manufacture, market and sell double rib TMT bar Ab Steel nahin. Power Alloy Steel Ka hai zamana! KAMDHENU PAS 10000 Kamdhenu 1 PAS 10000 Unique Rib design which gives locking of 360 degree. Its alloy gives it better rust-proof qualities and gives capability to bear more weight. Along with that it also gives double earth-quake prevention to the building Sampurna Suraksha Ki Guarantee KAMDHENU STEEL 5 KAMDHENU Samouma Suraksha Ki Guarantee STEEL Kamdhenu Structural Steel Produced under franchisee agreement multitude of special contours such as angles, channels, beams, flats, round, square & entire range of MS Pipes Kamdhenu Colour Max Colour Coated profile sheets - versatile color metal products make dream building look stylish and elegant for industrial warehouse & housing#6PAN-INDIA DECENTRALIZED MANUFACTURING & MARKETING NETWORK KAMDHENU Samouma Suraksha Ki Guarantee STEEL 80+ 8,500+ 250+ I Franchisees Dealers Distributors Decentralized Outsourced Manufacturing Model 1 Communication Working with a local manufacturer makes the communication process easy. Real time conversations result in a better understanding of the specifics and preferences of the products by the Customer 2 Low Minimums Even the smaller quantity of the orders are delivered efficiently. This will help us penetrate even in the smaller Tier II & Ill cities of the Country, efficient inventory control at retailers and construction sites Owned Plant Franchisee Network 3 Quick Turn-Around Times Turnover time for manufacturing is faster with diversified manufacturers. The demand forecast is accurately known, and the deliveries are planned accordingly Map not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness. 4 Transportation Costs Saving in Freight & Transportation Cost is reduced to a large extent with manufacturing near to the End Customer#7SUSTAINABLE GROWTH THROUGH BRAND CREATION Kamdhenu Brand Sales Turnover (In Rs. Crs) Volumes Sold (In Lakh MT Tonnes) +32% +21% 16,072 12,027 12,031 10,851* 8,072 21,197 +12% +21% 30.9 24.9 25.5 23.5 23.9^ 17.6 EBITDA (In Rs. Crs) KAMDHENU Samouma Suraksha Ki Guarantee STEEL +11% +10% 60.0 53.4 54.6 45.1 46.4# 36.3 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 CAGR +21% I CAGR +12% * Reduction in Selling Prices in FY20 A Volumes reduced due to COVID-19 # Excluding one-time tax settlement 7 CAGR +11% I#8ASSET LIGHT BUSINESS MODEL... Kamdhenu Limited Innovator - We do Research and introduce new products based on Customer Requirement in the Market Franchise Franchise Manufactures products based on technology, design and quality specifications provided by Kamdhenu KAMDHENU STEEL Dealer Distributor Dealers Distributors Committed chain of Dealers and Distributors connected with Franchisee Sales Depot created by Kamdhenu 8 KAMDHENU Samouma Suraksha Ki Guarantee Hierarchy of Marketing Network STEEL Franchisee Every franchisee is allowed to sell its product in a particular region which is its designated geographical area. Franchisee has to sell through particular distributors. Distributor Dealer Every distributor is also assigned a particular region which is its designated geographical area Every distributor shall facilitate the supply to a set of dealers in the said designated geographical area on exclusive basis#9CREATING LONG TERM SUSTAINABILITY Easy availability of product in all parts of the country BRAND I I I Benefits to Kamdhenu $ Enhanced revenue and increase in | Profitability due to Royalty earned == Expertise & Experience Provide franchise units with expertise and experience I for an efficient business Saving Transport cost Increase in | | Market share oooooO I I Ensure quick Improvement I delivery of in Brand | Efficient handling large ! I Products to | Bargaining Power I Equity volumes consumers I I I I I I 9 KAMDHENU STEEL Brand "KAMDHENU" Franchisee can leverage brand "KAMDHENU" Win-Win for Franchises KAMDHENU Sampuma Suraksha Ki Guarantee STEEL Quality Assurance Ready Marketplace | Centralized Publicity I I I I I I I Assurance of quality from Kamdhenu gives comfort to end customers Ready Platform I Assistance to T I | in niche market I Centralized giving facelift to Publicity support | unorganized I of Kamdhenu I I I I sector/new enterprise I I I Bank Funding I Marketing I I I Network I Capacity Utilization T T I I Presence and brand grants them easy & zero hassle availability of bank funding I | I Access to Provides exceptional I I I I I Marketing I distinctiveness and I J Network enables them to I | across India I | earn premium on their products I I I I thereby leading to higher capacity I I I utilization I#10STRUCTURAL STEEL FASTEST GROWING SEGMENT - Description Kamdhenu Limited manufactures Structural Steel under franchisee arrangement One such product which continues to pioneer new innovations It is counted as one of the most recycled material on Earth, made of 88% cast-off product, fully recyclable in the future Special Contours • End-user Industries Advantages KAMDHENU Samouma Suraksha Ki Guarantee STEEL Production of a multitude of special contours such as: Angles Channels Beams Flats Round & Square Pipes Industrial structures, flyovers, bridges, dams, transmission line towers, underground platforms in metro railways and other reinforcement structures across the country • High Strength and High Ductility Superior Bend ability, Weld ability and Straightness Available in every state of India Economic in Application Lower sectional weight and higher strength technique Highly cost-effective and save steel 10#119M FY24 STEEL BUSINESS RESULT HIGHLIGHTS - - Q3 & 9M FY24 Note: Q3 FY24 Revenues from Operations Rs. 155.0 Crores ✓ -15% YoY Revenues from Operations EBITDA PAT KAMDHENU Samouma Suraksha Ki Guarantee STEEL Rs. 14.2 Crores Rs. 11.1 Crores -17% YoY EBITDA -7% YoY PAT Rs. 548.7 Crores Rs. 43.2 Crores Rs. 33.4 Crores -3% YoY -4% YoY +10% YoY The decrease in revenues and EBITDA is primarily attributed to a temporary reduction in construction activities in the Delhi NCR region during the third quarter due to implementation of GRAP by government authorities in the NCR region. Over the last quarter, there were 37 days of GRAP Stage 3 and above wherein construction activities were completely banned in NCR region which has led to reduced demand and therefore lower ASPs. This has led to lower revenues and profitability during the quarter. 11#12CORE STEEL TMT BUSINESS I Q3 FY24 I Revenue Break Up KAMDHENU Samouma Suraksha Ki Guarantee STEEL Return On Equity* ROCE* Debt* I 9M FY24 I L- Revenue from Own Facility Rs. 122.8 Crores -16.6% 24.1% Rs. 454.4 Crores -0.3% Ban on Construction Activity during Q3 in Delhi NCR region implementation of GRAP by government authorities in the NCR region Royalty Income through Franchisee Sales Rs. 32.0 Crores +6.9% Rs. 93.6 Crores +11.7% Trading Sales Rs. 0.2 Crores Rs. 0.7 Crores *Brand Turnover as on December 2023 Rs. 15,700 Crores +1.2% Note: All comparisons are on Y-o-Y basis *Note: Brand Turnover is for 9 Months ended December 2023 32.2% NIL Increased Focus on Own Manufacturing & Franchisee Business Lower Working Capital Leading to Better Capital Efficiencies + Improved Return Ratios Recouped Business Strategy of Reducing B2B Trading Sales Ability to Innovate Newer Products and Gain Market Share * As on 30th September 2023, on Annualized Basis 12#13HUGE CAPACITIES AT ZERO CAPEX Production Capacity of Franchisees Steel Rebars 40 Lacs MT per annum Structural Steel 10 Lacs MT per annum Installed Capacities (MT) Regional Split 19% 31% 35% 21% 52.5 L Colour Coated Profile Sheets Royalty Income (FY23) Rs 114 Cr. 2.5 Lacs MT per annum 15% 31% North South 33% 15% East West 13 KAMDHENU Samouma Suraksha Ki Guarantee STEEL Company Owned Manufacturing, R&D and T&D Steel Division at Bhiwadi, Rajasthan Production Capacity 120,000 MT per annum (Realigned to support the future innovation, product development and training to franchise staff) Innovation Centre Research & Development and new products / designs based on customer requirement are introduced Plant used as training centre for all technical staff deputed at the franchisee's unit - trained on various technical, qualitative and commercial aspects Revenue from Own Facility for FY23 stood at Rs. 591 crores#14PROPOSED FUND RAISE OF ~ RS. 100 CRS. KAMDHENU Samouma Suraksha Ki Guarantee STEEL • The Board of Directors of the Company at their meeting held on 13th January, 2024 has approved the withdrawal of the Preferential Issue of 50,00,000 warrants convertible into equity shares, which was approved by the Board at their meeting held on 11th November, 2022, and subsequently approved by the shareholders of the Company at their Extra-Ordinary General Meeting held on 9th December, 2022, which could not be completed in view of seeking clarification on the issue price from regulatory authorities, the period of 12 months lapsed from the passing of the said Special Resolution, within which allotment against the said preferential issue had to be made. Therefore, Board of Directors of the Company has accorded their approval to withdraw the above said proposal of fund raising, since the resolution has become infructuous. Objectives Acquiring stake strategically in some of the franchisee units so as to re-modeling of franchisee business of the company Capital expenditure in existing manufacturing unit and/or acquiring & setting up of new office premises The Board of Directors in its meeting held on 13th January, 2024, had approved the issue of convertible warrants and accordingly proposes to issue and allot in aggregate up-to maximum of 27,50,000 (Twenty Seven Lakhs Fifty Thousand Only) convertible warrants at an issue price of Rs. 353/- (Rupees Three Hundred and Fifty Three Only) (including premium of Rs. 343/- each) or such other price as may be ascertained by the Statutory or Regulatory Authorities, to the entities/individuals belonging to Non-Promoter category, on a preferential basis subject to the approval of shareholders in ensuing extra-ordinary general meeting scheduled to be held on 8th February, 2024 and in compliance with applicable provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, as amended, and other provisions of applicable laws. Investments in existing and/or new business ventures in India and/or overseas for diversification Enhancing and strengthening the brand position and corporate image to leverage the overall brand premium Other general corporate purposes 14#15AWARDS & ACKNOWLEDGEMENTS KAMDHENU Samouma Suraksha Ki Guarantee STEEL We truly believe that Customer delight and satisfaction are the true award we vouch for and our efforts to meet the customers' expectation have brought many accolades to us WORLD'S GREATEST BRANDS INDIAN WINNER OF THE WORLD'S GREATEST BRAND 2015 ASIA & GCC WORLD CONSULTING & RESEARCH CORPORATION ASIA'S MOST PROMISING BRANDS VALIDATED BY COMUNERS & STR Category: Manufaturing-Steel-Promising Country: India POWER 2019-20 BRAND WORLD'S GREATEST BRANDS 2017-18 ASIL & OCC CHISES CONSIST Rarch by seash lervis PRESS ROPPL M BRAND VISION Kamdhenu Ltd 300e of Tear The Extrocedinte-Brand STOR ZU BB B nexbrands World's Greatest Brands 2015 amongst Asia & GCC Asia's Most Promising Brand 2015-16 by World Consulting & Research Corporation Indian Power Brand 2016 & 2019-20 Award World's Greatest Brands 2017-18 amongst Asia & GCC Icon of Trust - The Extraordinaire Brand 2015 + 2015-16 2016 & 2019-20 15 IRS asia one® G URS Asia One 2017-18 2020-22 2022-23#16BRAND PROMOTIONS Print Media National Newspaper f KAMDHENU Samoura Suraksha Ki Guarantee STEEL % Promotional Materials Digital Campaign Distribution of catalogues Brochures N The Indian EXPRESS Dainik Bhaskar ¡THE FINANCIAL EXPRESS THE ECONOMIC TIMES rajasthan patrika Regional Newspaper जनसत्ता पंजाब केसरी ■ Visiting cards Shop branding Sample board, pen, pad, mason kit having branding of Kamdhenu products. Kamdhenu NXT TMT Bars 40K views • 3 weeks ago 0:14 ■ Social media campaigns to educate consumers about benefit of its products Enable people to make the right choice 16#17BRAND PROMOTIONS AD Outdoor Campaigns Brand Educational Activities KAMDHENU STEEL ISO 9001:2008 Co Mfg Unit Alaknanda Sponge Iran Lod कामन ཉྙཊྛོ ལཐསཝཾ KAMDHENU PAS 10000 Power Alloy Steel KAMDHENU PAS 10000 Power Alloy Steel ཏྠཱཏྠཱམམསཁཾ MS 10000 NXI KAMEHU Nxt KAMDHENU Samoura Suraksha Ki Guarantee Television Campaign Dealers & Distributor Meets KAMDHENU Nxt Customer Meets Seminars, conferences ◉ Workshops International Trips Motivational Sessions Strong presence on various national and regional TV Channels such as Aajtak, Zee News, Zee Business, ABP and CNBC Network through various sponsorships and advertisement campaigns of Kamdhenu products 17 STEEL#18PARTICIPATION OF NOTED CELEBRITIES Brand Promotions, Event Participation Have Helped Strengthen Dealer Connect & Expand Visibility KAMDHENU Sampuma Suraksha Ki Guarantee STEEL Preity G Zinta Emraan Hashmi Madhuri Dixit Kanika Kapoor Tapsee Pannu Jacqueline Fernandez Kangana Ranaut Malaika Arora Sonam Kapoor Dia Mirza Sonu Nigam Rakul Preet Karishma Tanna Govinda Kareena Kapoor 18 Karisma Kapoor Anil Kapoor Manushi Chhillar#19EXPERIENCED BOARD OF DIRECTORS KAMDHENU Samouma Suraksha Ki Guarantee STEEL Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Sachin Agarwal Mr. Saurabh Agarwal Mr. Ramesh Chand Surana Chairman & Managing Director Whole Time Director Whole Time Director Non-Executive Director Independent Director Mr. Baldev Raj Sachdeva Mr. Madhusudan Agrawal Mrs. Pravin Tripathi Mr. Vivek Jindal Mr. Harish Kumar Agarwal Independent Director Independent Director Independent Director Additional Director Chief Financial Officer 19#20PROFIT AND LOSS STATEMENT KAMDHENU Samouma Suraksha Ki Garantee Particulars (Rs. In Crs.) Revenue from Operations Cost of Materials Consumed Purchases of stock-in-trade Changes in Inventories Total Raw Material Gross Profit Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 155.0 182.7 -15% 548.7 565.2 Y-o-Y -3% 105.2 131.9 400.1 399.9 0.1 5.2 0.7 25.9 3.8 -1.0 1.7 2.2 109.1 136.0 402.5 428.0 45.9 46.6 -1% 146.2 137.2 7% GP Margin (%) 29.6% 25.5% 26.6% 24.3% Employee Expenses 11.4 10.7 35.2 31.4 Other Expenses 20.3 18.8 67.8 61.0 EBITDA 14.2 17.1 -17% 43.2 44.8 -4% EBITDA Margin (%) 9.1% 9.4% 7.9% 7.9% Other Income 2.4 0.5 5.8 0.8 Depreciation 1.3 1.2 3.8 3.5 EBIT 15.3 16.5 -7% 45.2 42.2 7% EBIT Margin (%) 9.9% 9.0% 8.2% 7.5% Finance Cost 0.3 0.4 0.5 1.7 Profit before Tax 15.0 16.1 -7% 44.7 40.5 10% PBT Margin (%) 9.7% 8.8% 8.2% 7.2% Tax 3.9 4.1 11.3 10.2 Profit After Tax 11.1 12.0 -7% 33.4 30.3 10% PAT Margin (%) 7.2% 6.6% 6.1% 5.4% 20 STEEL#21BALANCE SHEET KAMDHENU Samouma Suraksha Ki Guarantee STEEL Particulars (Rs. In Crs) Sep-23 Mar-23 Particulars (Rs. In Crs) Sep-23 Mar-23 Equity Non Current assets Equity Share Capital 26.9 26.9 Property, Plant and Equipments 45.5 44.8 Other Equity 158.1 139.7 Right of Use Assets 2.1 2.4 Total Equity 185.0 166.7 Investment in Subsidiary 0.0 0.0 Non Current Liabilities Financial Assets Financial Liabilities Other Investments 16.7 4.7 Lease Liabilities 2.0 2.6 Loans 0.1 0.1 Other Liabilities 6.0 5.4 Other Financial Assets 15.9 2.7 Provisions 3.5 3.3 Other Non-Current Assets 9.4 10.4 Deferred Tax Liabilities (Net) 0.9 1.0 Total Non Current Assets 89.7 65.1 Total Non Current Liabilities 12.3 12.3 Current Assets Current Liabilities Inventories 16.0 14.6 Financial Liabilities Financial Assets Borrowings Lease Liabilities Trade Payables 1.0 0.0 Investment 19.6 9.5 1.4 1.1 Trade Receivables 71.4 82.1 24.2 19.2 Cash and Cash Equivalents 5.3 11.9 Other Financial Liabilities 9.2 3.6 Bank Balances 0.1 0.3 Other Current Liabilities 5.0 4.7 Loans 10.2 2.9 Provisions 0.5 0.5 Other Financial Assets 0.0 0.1 Current Tax Liabilities (Net) 0.5 0.4 Other Current Assets 26.8 22.0 Total Current Liabilities 41.7 29.5 Total Current Assets 149.4 143.4 Total Equity and Liabilities 239.1 208.5 Total Assets 239.1 208.5 21#22CASHFLOW STATEMENT Cash Flow Statement (Rs. Crore) Sept-23 KAMDHENU Samouma Suraksha Ki Guarantee STEEL Sept-22 Net Profit Before Tax 29.7 24.4 Adjustments for: Non - Cash Items / Other Investment or Financial Items 1.3 4.5 Operating profit before working capital changes 31.0 28.9 Changes in working capital 18.9 9.2 49.9 38.1 Cash generated from Operations Direct taxes paid (net) Net Cash from Operating Activities Net Cash from Investing Activities Net Cash from Financing Activities Net Decrease in Cash and Cash equivalents Add: Cash & Cash equivalents at the beginning of the period Cash & Cash equivalents at the end of the period 22 22 -7.6 -6.1 42.3 32.0 -45.3 -0.6 -3.6 -31.7 -6.6 -0.3 11.9 3.7 5.3 3.4#23KAMDHENU STEEL Sampurna Suraksha Ki Guarantee THANK YOU For further Information, please contact : SGA Strategic Growth Advisors KAMDHENU Sampurna Suraksha Ki Guarantee STEEL CIN: L27101HR1994PLC092205 Mr. Harish Kumar Agarwal Group CFO, CRO & Head-Legal [email protected] www.kamdhenulimited.com CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Varun Shivram +91 98333 73300 / +91 91378 91895 [email protected] / [email protected] www.sgapl.net 23