#1LARSEN & TOUBRO Investor Presentation Q4 / FY23 10th May, 2023 LTIMindtree 190 1190#2L&T Chennai Innovation Campus (Representative Image) Disclaimer This presentation contains certain forward looking statements concerning L&T's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 2#301 L&T Overview EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES ବିର୍ସା ମୁଣ୍ଡା ହକି ଷ୍ଟାଡିୟମ T Birsa Munda International Hockey Stadium in Rourkela LARSEN & TOUBRO 3#4L&T - At a Glance India's largest E&C company with interests in EPC Projects, Hi-Tech Manufacturing and Services. Group Revenue Credit Rating Market Capitalization لأمم ☆☆☆ 奶 CRISIL: AAA / (Stable) ICRA: AAA (Stable) A Professionally Managed Corporate Group *1,833Bn FY 23 (approx. US$ 23Bn) (Larsen and Toubro Ltd) 3323Bn 10th May, 2023 (approx. US$ 41 Bn) (Larsen and Toubro Ltd) EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 4#5Builders to the Nation Statue of Unity, Gujarat Kempegowda International Airport- Terminal 2 Narendra Modi Stadium, Ahmedabad 4MWp Floating Solar Plant, Tirupati Crude and Vacuum Distillation Unit, Vizag Mono Ethylene Glycol (MEG) Project, Paradip Kakrapara Nuclear Power Plant Multi-modal terminal at Sahibganj, Jharkhand Coke Oven Battery in Kalinganagar, Odisha Nuapada Water Supply Project, Odisha Baha'i Temple, Delhi Madhya Pradesh Expressway Hydrocracker, HPCL Vizag Refinery ICGS Sarang 44 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES L&T Technology Services - 5G Lab 230MW Solar PV Plant in Tamil Nadu for NTPC LARSEN & TOUBRO 5#6International Footprint Sheikh Khalifa Interchange, UAE Al Rayyan Stadium, Doha, Qatar Al-Wakrah bypass road, Qatar Kensington Oval, Bridgetown, Barbados Coke Drum supplied to a Mexican customer Cryostat for ITER, France Industrial Area Sewage Treatment Works, Qatar 225 MW Combined Cycle Power Plant, Bangladesh Hasbah-II-Saudi Arabia Mauritius LRT 375 MLD Jebel Ali Sewage Treatment Plant Gathering Centre (GC 30), Kuwait Midyan Gas Processing Facilities, KSA Modular Fabrication Yard, Sohar - Oman LTIMindtree Delivery Centre, Johannesburg LTIMindtree's Digital Innovation Hub, London EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 6#7Executive Directors S. N. Subrahmanyan Chief Executive Officer and Managing Director* R Shankar Raman Whole-time Director & Chief Financial Officer M. V. Satish Whole-time Director & Sr. Executive Vice President (Buildings) B.SC ENGG (CIVIL), B.Com, ACA, ACMA BE (Civil) MBA (Finance) Joined L&T in November 1984 Vast experience in Design & Build (D&B) Contracts, PPP Projects, Engineering and Construction Industry Joined L&T Group in Nov 1994 Joined L&T in 1980 Vast experience in Finance, Taxation, Risk Management, Legal and Investor Relations Vast experience in Construction, Business Development, Contracts Management and Property Development in India and GCC region Subramanian Sarma Whole-Time Director & Sr. Executive Vice President (Energy) Masters in Chemical Engineering from IIT Mumbai Joined L&T Group in 2015 Vast experience in managing large business portfolios in energy sector S.V. Desai Whole-Time Director & Sr. Executive Vice President (Civil Infrastructure) Masters in Civil Engineering Joined L&T Group in 1997 Vast experience in Heavy Civil and Infrastructure Space * Will be has been re-designated as the “Chairman and Managing Director" of the Company with effect from 1st October, 2023 Note: Mr D. K. Sen as a Whole Time Director & Sr. Executive Vice President (Development Projects) superannuated from 07th April, 23 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES T.Madhava Das Whole-Time Director & Sr. Executive Vice President (Utilities) BE (Elec), NIT MBA- XIM, Bhubaneshwar Joined L&T Group in 1985 Vast Experience in managing and nurturing business portfolios of global utility projects especially in power transmission and distribution and renewables Anil. V. Parab Whole-Time Director & Sr. Executive Vice President (Heavy Engineering & L&T Valves) Mechanical Engineer from V.J.T.I Mumbai Joined L&T Group in 1982 Vast Experience in Technology, Business Development & leading manufacturing facilities LARSEN & TOUBRO 7#8L&T - Shareholding Pattern Mutual Funds, 17% L&T Employee Trust, 14% Others, 8% Govt. Financial Institututions & Insurance Companies, 15% As at 31st March, 2023 FII's & GDR, 25% Individuals, 21% • Listed with BSE & NSE GDRs listed with LSE and LuxSE L&T is one of the most widely held listed companies in India • No promoter holding Uninterrupted Dividend payment record since 1946 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 8#9Fabrication & Construction Value creating Integrated Business Model IT, Engineering & Technology Services EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Design & Engineering EPC Projects Financial Services Product Realty & Infrastructure Development Hi Tech Manufacturing LARSEN & TOUBRO 9#10Segment Composition Infrastructure Projects Energy Projects IT & TS Others Hydrocarbon Buildings & Factories Power Heavy Civil Water Power T&D Green EPC LTIMindtree LTTS Digital Platforms Data Centers Realty Smart World & Communications* Industrial Machinery & Products Financial Services Transportation Infra Hi-Tech Manufacturing Minerals & Metals Heavy Engineering Retail Lending Wear Hear Protection * The Company entered into a Business Transfer Agreement on January 12, 2023 to transfer the Carved-out Business of Smart World and Communication (SWC) Business unit of the Company, forming part of the Others segment by way of a sale on a going concern basis to L&T Technology Services Limited (LTTS), a listed subsidiary. The transfer was completed on April 1, 2023 Defence Engineering Green Manufacturing Wholesale Lending EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Development Projects L&T IDPL* ** Hyderabad Metro Nabha Power Green BOO **Held for Sale LARSEN & TOUBRO 10#11E&C Delivery Platform One of Asia's largest vertically integrated E&C Companies EPC PROJECTS Design & Engineering Procurement & Construction Commissioning Manufacture & Fabrication Single point responsibility for turnkey solutions EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 11#12Marquee Customers - Projects & Manufacturing 8021 EL ओएनजीसी ongc भाराराप्रा सयन कप NHAI MMRC NPCIL वयम रक्षाम Indian Coastguard दिल्ली मेट्रो रेल कॉरपोरेशन लिमिटेड DELHI METRO RAIL CORPORATION LTD. NHSRCL National High Speed Rail Corporation Ltd. एनटीपीसी Thermal NTPC Power Corporation ارامكو السعودية Saudi Aramco ACWA CWA POWER وا باور أدنوك ADNOC هيئة كهرباء ومياه دبي شركة بترول أبوظبي الوطنية Dubai Electricity & Water Authority AM/NS INDIA ArcelorMittal Nippon Steel India National (इंडियन ऑयल NVDA NARMADA VALLEY DEVELOPMENT AUTHORITY (AN ORGANISATION OF GOVT. OF MADHYA PRADE IndianOil METRO EXPRESS KAHRA EL MAA هيئة مياه وكهرباء أبوظبي Abu Dhabi Water & Electricity Authority شركة البترول الوطنية الكويتية (ترمرد) Dhaka Metro Rail ArRiyadh Development Authority EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES KNPC MMRDA Mumbai Metropolitan Region Development Authority www.mmrdomumbai.org PDO Petroleum Development Oman LARSEN & TOUBRO 12#13Rewards and Recognitions BW BUSINESSWORLD BAMEY MOST Knewletus Perine RESPECTED COMPANIES 1 IGBC GRE INDIAN RATING LDING C COUNCIL IGBC GOLD Great Place To WorkⓇ Certified FEB 2023 - FEB 2024 INDIA TM Businessworld (BW) has ranked L&T among India's Most Respected Companies in 2023. L&T features among the Top 20 companies in India. PROJECTS MEED AWARDS 2022 In association with L&T's Power & Distribution (PT&D) won two awards at the Middle East Economic Digest (MEED) Project Awards in the "Power Projects of the Year" category المشرق mashreq Indian Green Building Council (IGBC) set up by the Confederation of Indian Industry (CII) has awarded a Gold rating to Hyderabad Next Business Park Tower 1 at Raidurg in March 2023. Apart from this, as many as 23 metro stations of L&T HMRL currently have IGBC platinum rating BRITISH SAFETY COUNCIL Sword of Honour 2022 Winner L&T verticals won eight awards from British Safety Council (BSC) which confers the Sword and Globe of Honour awards 2022 to the "best of the best" projects having innovative Occupation Health & Safety systems and practices. L&T was certified as a Great Place to Work by the Great Place to Work Institute (Feb'2023- Feb'2024) ET THE ECONOMIC TIMES Human Capital HCA Awards L&T was recognized as one of the top companies for 'Excellence in Recruitment and Hiring -Freshers/Campus Hire' at the Economic Times Human Capital Awards (ETHCA) 2022 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 13#1402 Key Highlights ХРЯЗАМ CRAJASE 3 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Western Dedicated Freight Corridor - CTP 3R (Iqbalgarh to Makarpura) LARSEN & TOUBRO 14#15"Buoyant" performance amidst Capex tailwinds Key milestones achieved during the year Rs 2 trillion+ Order Inflow in FY23 19% y-o-y growth Healthy execution ramp up & smart working capital management 17% y-o-y Revenue Growth Profit & Return Ratio Rs 10374 crore Recurring PAT in FY23 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Record High!! 5 Year High!! ≈ Rs 4 trillion Order Book as on 31st March 23 Record High!! 16.1% NWC / Revenue as on Mar' 23; Robust operational cash flows supported by smart execution 12.2% ROE as on March 23; on the path to achieving strategic plan 5 Year Best!! LARSEN & TOUBRO 15#16三月 Key Financial Indicators (Amount in Rs. bn) Q4 FY22 Q4 FY23 (y-o-y) Particulars FY22 FY23 (y-o-y) 739 761 3% Order Inflow 1930 2305 19% Order Book 3576 3995 12% 529 583 10% Revenue 1565 1833 17% 12.3% 11.7% EBITDA (%) 11.6% 11.3% 36 40 10% Recurring PAT 86 104 21% 36 40 10% Overall PAT 87 105 21% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Particulars FY22 FY23 Net Working Capital 19.7% 16.1% ROE (TTM) (%) 11.0% 12.2% LARSEN & TOUBRO 16#17• Q4 / FY23 Order Inflow/Order Book • Q4 FY22 Q4 FY23 3%↑ Order Inflow 401 360 761 417 322 739 FY22 FY23 19% ↑ 1440 865 2305 1089 841 1930 || 952 Domestic International Healthy awarding momentum across India and GCC in Q4 Strong prospects pipeline for FY24 International orders constitute 28% of the Mar'23 order book EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Order Book 12% ↑ (Amount in Rs. bn) 1118 3576 3995 2877 2624 FY22 FY23 LARSEN & TOUBRO 17#1803 Group Performance EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES New Living Quarter (LQ) & Revamp at 'NQ Complex' (NLRNC-RT2) Project LARSEN & TOUBRO 18#19Group Performance - Sales & Costs Remarks for the quarter Q4 FY22 Q4 FY23 % Var Rs Billion FY22 FY23 % Var 528.5 583.4 10% Revenue 1565.2 1833.4 17% 33% 39% International Rev. 36% 38% • 348.0 379.7 9% MCO Exp.* 939.3 1105.9 18% 14.4 15.2 6% Fin. Charge Opex** 59.5 60.3 1% • 79.7 99.8 25% Staff Costs 297.0 372.2 25% 21.2 20.3 -4% Sales & Admin. 87.3 87.6 0% • 463.3 515.0 11% Total Opex 1383.2 1625.9 18% 65.2 68.3 5% EBITDA 182.0 207.5 14% 12.3% 11.7% EBITDA % 11.6% 11.3% * Manufacturing, Construction and Operating expenses **Finance cost of financial services business and finance lease activity EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Strong execution momentum in Hydrocarbon, Hi-Tech Manufacturing and IT&TS MCO expense variation is reflective of activity levels and revenue mix Resource augmentation and salary hikes across businesses drives staff cost • SG&A reflective of lower credit cost in FS Drop in EBIDTA margin primarily due to cost pressures in Projects portfolio LARSEN & TOUBRO 19#20Group Performance - Profit Parameters Q4 FY22 Q4 FY23 % Var Rs Billion FY22 FY23 % Var 65.2 68.3 5% EBITDA 182.0 207.5 14% (7.1) (8.1) 15% Fin. Cost (31.3) (32.1) 3% (7.7) (8.5) 11% Depreciation (29.5) (35.0) 19% 5.2 7.4 44% Other Income 22.7 29.3 29% (15.5) (14.6) -6% Tax Expense (42.0) (44.8) 7% 1.3 0.1 - JV/S&A PAT Share 1.3 (0.9) (5.2) (4.7) -9% Non-controlling Int. (17.5) (20.2) 15% 36.2 39.9 10% Recurring PAT 85.7 103.7 21% Exceptionals (net of tax and NCI) 1.0 1.0 36.2 39.9 10% Reported PAT 86.7 104.7 21% Note: Profit consolidation of L&T IDPL at PAT level has been discontinued from Q4FY23, post signing of definitive agreement for sale of stake. The investment in the JV is classified as "Held for Sale" EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES • Remarks for the quarter Higher finance cost due to increase in rate of borrowing Other income reflective of level of treasury investments & yields during the quarter Share of JV / Associate PAT primarily comprises results of Power and Hydrocarbon JVs. L&T IDPL profit consolidation has been discontinued from Q4FY23 (refer note below) Higher Recurring PAT aided by improved performance LARSEN & TOUBRO 20#21RAS BOCAS I APPROX 04 Segment Performance Highlights CAUTION VITALWK NIROGEN UNDER PRESSURE NOT ENTER WITHOUT REMOVAL OF NITROGEN POST WELD HEAT TREATED VESSEL-NO WELDING OR ARC STRIKING ON PRESSURE PAR LARSEN & TOUBRO 90° EAST RATED LOAD CAPACITY-385061 kg Coke Drums for a client in Egypt EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 21#22Segment Geography Order Inflow Composition - Q4 / FY23 Infrastructure, 54% Domestic, 53% Q4 FY23 Rs. 761 Bn Hi-Tech Manufacturing, 11% Energy, 12% Others, 3% Middle East, 32% FY23 Rs. 2305 Bn Hi-Tech Manufacturing, 7% Others, 4% Energy, 13% Services, 20% USA & Europe, 13% Infrastructure, 51% Services, 25% Middle East, 19% USA & Europe, 16% ROW, 2% Domestic, 62% ROW, 3% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 22#23Order Book as on 31-Mar-2023 Infrastructure, 71% Segment O Energy, 18% Hi-Tech Manufacturing, 7% Others, 4% Domestic, 72% Order Book Rs. 3995 Bn EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Geography Middle East, 24% USA & Europe, 0.6% ROW, 3% LARSEN & TOUBRO 23#24Revenue Composition - Q4 FY23 / Geography Segment Q4 FY23 Rs. 583 Bn Hi-Tech Manufacturing, 4% Energy, 14% Infrastructure, 53% Domestic, 61% Others, 3% FY23 Rs. 1833 Bn Hi-Tech Manufacturing, 3% Others, 4% Energy, 14% Services, 26% Middle East, 17% USA & Europe, 16% Infrastructure, 47% ROW, 6% Domestic, 62% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Services, 32% Middle East, 13% USA & Europe, 19% ROW, 6% LARSEN & TOUBRO 24#25Infrastructure Projects Segment Net Revenue 5% ↑ 297.3 74.3 312.2 82.9 223.0 229.3 Q4 FY22 Q4 FY23 9.2% EBITDA Margin 7.5% ↓ 724.0 Net Revenue 20% ↑ 867.2 (Amount in Rs. bn) 167.5 191.9 556.5 675.3 FY23 FY22 8.2% EBITDA Margin 7.0% ↓ Domestic International hal Robust domestic ordering momentum continues in Q4 • Strong prospect pipeline for FY24 · Execution growth reflective of opening order book and stage of execution • Near term margin headwinds continue with cost pressures in certain projects, client claims being pursued EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 25#26Energy Projects Segment Net Revenue 18% ↑ 79.2 67.2 37.4 16.5 HITACH 50.7 41.8 235.9 Net Revenue 6% ↑ (Amount in Rs. bn) 249.1 71.0 96.8 152.3 164.9 Q4 FY22 Q4 FY23 FY22 FY23 8.8% EBITDA Margin 10.4% ↑ 7.8% EBITDA Margin 9.1% ↑ Domestic International • • Receipt of multiple international orders in Q4 buoys Hydrocarbon order book; muted order inflows in Power business Robust execution momentum drives Hydrocarbon revenue growth; lower revenues in Power reflective of depleting Order Book Execution cost savings in Power and favorable customer claims in Hydrocarbon aids margin improvement EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 26#27Hi-Tech Manufacturing Segment Net Revenue 21% ↑ 21.3 17.6 6.4 2.4 15.2 14.9 Q4 FY22 Q4 FY23 24.0% EBITDA Margin 19.7%↓ Domestic 15.0 (Amount in Rs. bn) Net Revenue 10% ↑ 59.4 65.3 FY22 44.4 15.5 49.8 19.6% EBITDA Margin 18.0% ↓ International hal FY23 Order inflow growth in Defence Engineering driven by Government's thrust towards indigenization; whereas Heavy Engineering was impacted on order deferrals • Higher progress in Refinery business in Heavy Engineering and execution ramp up in Defence drives revenue growth • Higher margin in Q4 PY is explained by better progress in Nuclear jobs in Heavy Engineering The Defence Engineering business does not manufacture any explosives nor ammunition of any kind, including cluster munitions or anti-personnel landmines or nuclear weapons or components for such munitions. The business also does not customise any delivery systems for such munitions EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 27#28IT & Technology Services Segment • Net Revenue 21% ↑ 106.4 87.6 20.6 17.2 85.8 70.5 LTIMindtree Net Revenue 26% ↑ || 322.7 407.4 || 0.1 || 64.5 78.8 || 258.1 || 328.5 Q4 FY22 Q4 FY23 FY22 FY23 23.7% EBITDA Margin 19.9%↓ 23.3 % EBITDA Margin 20.7% ↓ LTIMindtree LTTS Digital Businesses LTIMindtree revenue growth led by BFSI and Manufacturing & Resources • • LTTS revenue growth led by Transportation, Plant Engineering and Industrial Products Segment margin impacted mainly due to higher employee costs Revenues and margins of Digital Platforms business are not significant as they have been launched recently EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES (Amount in Rs. bn) LARSEN & TOUBRO 28#29Financial Services Segment RETAIL. DIGITAL. SUSTAINABLE. Q4 Q4 % Var Rs. Bn FY22 FY23 % Var FY22 FY23 29.6 31.2 5% Income from Operations 119.7 125.7 5% 3.4 5.0 46% Reported PAT 10.7 16.2 52% Micro Loans 2.2 3.3 53% PAT (Net of NCI) accruing to the group 6.8 10.7 58% Book Gross Stage 3 Assets Net Stage 3 Assets Net worth 883.4 808.9 -8% 4.08% 4.74% 1.98% 1.51% A 199.5 215.3 8% Housing Finance SME Loans Consumer Loans On course to become a top-class 'digitally-enabled' retail finance company; moving from 'product-focused' to 'customer-focused' approach Q4 revolved around improved NIMS + Fees, lower credit costs, better asset quality and run down of wholesale & expansion of retail (share of Retail at 75% of Book) Adequate growth capital available (CRAR @ 24.52%) EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 29#30• • Development Projects Segment Net Revenue 12% ↑ 11.0 1.0 12.3 1.9 9.9 10.4 Q4 FY22 Q4 FY23 2.4% EBITDA Margin 41.6% ↑ Power Development 43.7 3.7 Hyd Metro 40.0 FY22 Net Revenue 15% 50.2 6.9 2.3% EBITDA Margin 14.2% ↑ FY23 (Amount in Rs. bn) 43.3 Segment includes Hyderabad Metro, Nabha Power & L&T Uttaranchal Hydropower Limited (up to the date of its divestment i.e., 30th August 2021) Improved ridership in Metro and higher PLF in Nabha drive revenue growth Higher segment margin in Q4 primarily due to consolidation of Nabha profits led by increase in benchmark valuations Profit consolidation of L&T IDPL at PAT level has been discontinued from Q4FY23, post signing of definitive agreement for sale of stake. The investment in the JV is classified as "Held for Sale" EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 30#31• • Others Segment Net Revenue 14% ↑ 18.2 1.0 1.8- 59.8 20.7 4.5 18.9 17.2 Q4 FY22 Q4 FY23 20.7% EBITDA Margin 19.8%↓↓ 55.3 Net Revenue 15% ↑ 68.4 5.3 63.1 FY23 FY22 18.6% EBITDA Margin 18.1%↓ Domestic International (Amount in Rs. bn) Segment comprises Realty, Industrial Valves, Smart World & Communications, Construction Equipment & Mining Machinery and Rubber Processing Machinery Q4 revenue growth mainly in Realty, Rubber Processing Machinery and Construction Equipment & Mining Machinery • Margin variation due to delay in receipt of Occupancy Certificate (OC) w.r.t. a certain project in Realty EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 31#32Balance Sheet Rs Billion Mar-22 Mar-23 Incr/ (Decr) Equity & Reserves 824 893 69 Non Controlling Interest 130 142 13 Borrowings - Financial Services 841 820 -22 Development Projects 181 179 -2 Others 213 187 -26 Sources of Funds 2188 2221 32 Fixed Assets (incl ROU assets) 137 164 27 Intangible Assets & Investment Property 305 293 -12 Loans towards Financing Activities 814 738 -76 Finance lease receivable 65 62 -3 Net Non-Current Assets 173 180 7 Current Investments, Cash & Cash Equivalents 488 581 93 Net Current Assets 199 193 -7 Assets held for Sale (net) 8 10 2 Application of Funds 2188 2221 32 Gross Debt/Equity Ratio 1.29 1.14 Net Debt/Equity Ratio 0.81 0.62 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 32#33Cash Cash Flow Q4 FY22 Q3 FY23 Q4 FY23 Rs Bn FY22 FY23 67.1 51.9 79.0 Operating Profit 189.5 225.2 52.5 13.3 33.1 Changes in Working Capital [(Inc)/Dec] 6.2 11.2 (13.2) (11.5) (12.9) Direct Taxes (Paid)/ Refund [Net] (45.4) (51.3) 106.4 53.7 99.2 Net Cash from / (used in) Operations (A) 150.3 185.2 (12.4) (13.7) (7.6) Net Investment in Fixed Assets (incl. Intangible & Investment Property) (30.4) (37.9) (5.5) 21.9 (6.8) (10.7) (20.0) (49.0) Net (Purchase) / Sale of Long Term investments Net (Purchase) / Sale of Current investments (3.2) 4.4 (12.9) (67.5) 0.1 (0.0) Loans/Deposits made with JV/Associate Cos. (1.5) 0.2 3.4 4.9 5.6 Interest & Dividend Received 11.3 17.7 (25.2) (6.8) (57.8) Net Cash from /(used in) Invest. Act. (B) (36.7) (83.1) (5.6) (0.4) (1.8) Issue of Share Capital / NCI (10.1) (6.0) 18.9 (23.9) (63.0) Net Borrowings [Inc/(Dec)] (86.8) (48.3) (47.0) 6.2 62.1 Loans towards financing activities (Net) 41.4 42.6 (3.9) (8.4) (3.2) Interest & Dividend paid (55.0) (61.4) (37.7) (26.5) (5.9) Net Cash from / (used in) Financing Activities (C) (110.5) (73.2) 43.5 20.4 35.5 Net (Dec) / Inc in Cash & Bank (A+B+C) 3.1 28.9 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 33#34OUTLOOK 30 R Rupee Tor Tree EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO 34#35(-) Continuing military conflicts Supply chain issues "Localization" trends Volatile energy prices Rate hiking cycle "Stability" amidst Macro Volatility WORLD 袋 • (-) "Manufacturing" Competitiveness Skill shortage The Watchful "Households❞ INDIA The "Core" of ✓ Balanced Portfolio ✓ Capability Spectrum "History" of Performance ✓ Embracing new technology (+) (+) Tax buoyancy Prudent policy • Digitalization trends . China + 1 Trends • Energy Transition moves management Capex Resurgence Macro Stability EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Targeting "inclusive" growth LARSEN & TOUBRO 35#36EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES Thank You Investor Relations: P Ramakrishnan ([email protected]) Harish Barai (Harish. [email protected]) Shalmali Dange ([email protected]) LARSEN & TOUBRO 36#37Segment Margin - Q4 FY23 Rs 100 crore = Rs 1 bn Q4 FY22 Q4 FY23 Segment (Rs Cr) Net Revenue EBITDA EBITDA % EBITDA Net Revenue EBITDA % Infrastructure Projects Segment 29727 2735 9.2% 31222 2331 7.5% Energy Projects Segment 6717 588 8.8% 7916 824 10.4% Hi-Tech Manufacturing Segment Others Segment 1762 422 24.0% 2134 419 19.7% 1824 377 20.7% 2073 411 19.8% Total (Projects & Manufacturing) 40030 4122 10.3% 43345 3986 9.2% IT & Technology Services Segment 8761 2078 23.7% 10645 2119 19.9% Financial Services Segment 2963 509 17.2% 3116 688 22.1% Developmental Projects Segment 1096 26 2.4% 1229 511 41.6% Total (Services & Concessions) Total 12820 2613 20.4% 14990 3318 22.1% 52851 6735 12.7% 58335 7305 12.5% EBITDA to PAT (Q4 FY23) Particulars EBITDA Depreciation IT&TS Financial Services Dev. Projects Projects & Manufacturing* Corporate Total 2119 688 511 3986 270 7574 (312) (29) (81) (368) (64) (854) Segment Result 1808 660 430 3618 206 6720 Finance Cost & Tax Expense (484) (243) (332) (157) (1057) (2274) Non-controlling interest (415) (85) 27 1 (472) Share in profit/(loss) of JV and associate Exceptional items (net of tax) 12 12 PAT 909 332 98 3500 (851) 3987 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES *Interest cost and tax provisions of parent company are reflected under Corporate LARSEN & TOUBRO 37#38Segment Margin - FY23 Rs 100 crore = Rs 1 bn FY22 FY23 Segment (Rs Cr) Net Revenue EBITDA EBITDA % EBITDA Net Revenue EBITDA % Infrastructure Projects Segment 72404 5920 8.2% 86717 6064 7.0% Energy Projects Segment 23593 1843 7.8% 24907 2276 9.1% Hi-Tech Manufacturing Segment 5942 1167 19.6% 6535 1174 18.0% Others Segment 5977 1113 18.6% 6845 1240 18.1% Total (Projects & Manufacturing) 107916 10043 9.3% 125004 10754 8.6% IT & Technology Services Segment 32266 7529 23.3% 40737 8446 20.7% Financial Services Segment 11971 1574 13.1% 12575 2372 18.9% Developmental Projects Segment 4368 100 2.3% 5024 715 14.2% Total (Services & Concessions) 48605 9203 18.9% 58337 11534 19.8% Total 156522 19245 12.3% 183341 22288 12.2% EBITDA to PAT (FY23) Particulars IT&TS Financial Services Dev. Projects Projects & Manufacturing* Corporate Total EBITDA 8446 2372 715 10754 1394 23682 Depreciation (1274) (113) (324) (1406) (384) (3502) Segment Result 7172 2259 392 9348 1009 20180 Finance Cost & Tax Expense (1972) (872) (1274) (436) (3138) (7691) Non-controlling interest (1620) (450) 39 (29) (2060) Share in profit/(loss) of JV and associate Exceptional items (net of tax) (76) (18) (94) 136 136 PAT 3580 1073 (958) 8934 (2158) 10471 EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES *Interest cost and tax provisions of parent company are reflected under Corporate LARSEN & TOUBRO 38#39Return ratios improve in the Projects & Manufacturing (P&M)* portfolio Growth over FY19 Rs crore FY19 FY20 FY21 FY22 FY23 Gross Segment Revenue (P&M) 104661 106034 94639 109800 127012 Y-0-Y% 1% -11% 16% 16% Segment Result (PBIT) 8432 9301 8230 8842 9348 11 21% 11% Y-o-Y% 10% -12% 7% 6% Segment Result / Gross Revenue 8.1% 8.8% 8.7% 8.1% 7.4% Segment Funds Employed 38509 45959 37532 39376 39649 3% Y-0-Y% 19% -18% 5% 1% Segment Result/ Capital Employed 21.9% 20.2% 21.9% 22.5% 23.6% Corresponding EBITDA Margin 10.1% 10.0% 10.1% 9.3% 8.6% Rs 100 crore = Rs 1 bn Combination of Revenue Growth & reduced Capital Intensity offsets margin slide, resulting in improved returns Note: All the numbers are as per published results *P&M includes Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing and Others segments EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES is with respect to previous year LARSEN & TOUBRO 39#40The Journey of Return ratios at Group level Rs crore FY23 P&M IT&TS Gross Segment Revenue 127012 Segment Result (PBIT) (A) 9348 40988 7172 Financial Services 12575 2259 Development Unallocable Projects Corporate 5029 392 Total 183341# 1009 20180 Segment Funds Employed (B) 39649 29106 19783 19754 27212 135504 Segment Result/Segment Funds Employed (A/B) FY23 23.6% 24.6% 11.4% 2.0% 3.7% 14.9% FY22 22.5% 23.8% 7.9% -1.1% 4.5% 13.5% FY21 21.9% 20.6% 7.4% -0.9% 7.3% 12.7% FY20 20.2% 18.8% 19.9% 1.6% 1.6% 14.2%* FY19 21.9% 43.6% 25.7% 1.5% 2.4% 16.2%* Strategic Plan goals to improve return profile Memorandum Balance Sheet as on 31-Mar-23 Equity & Borrowing Amount Assets Rs crore Amount Capital Employed Networth 89326 108292 Portfolio Retail-isation (excl corp) Higher cash return to shareholders over time Non-controlling int 14241 Unallocable 27212 Borrowings 31937 Corporate Assets 135504 135504 Divestment Restructuring **Segment funds employed of FS and Nabha is net off borrowings Rs 100 crore = Rs 1 bn Note: All the numbers are as per published results. is with respect to FY19. IT&TS is w.r.t. FY20 (post acquisition of Mindtree) EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES *excludes Electrical & Automation business # Post inter-segment eliminations LARSEN & TOUBRO 40#41Breakup of Energy and Hi-Tech Manufacturing Segment Q4 Q4 Y-o-Y Rs Bn FY22 FY23 Y-O-Y FY22 FY23 76.1 88.9 17% Energy Segment 322.7 307.5 -5% Order Inflow 74.0 86.4 17% Hydrocarbon 309.1 290.8 -6% 2.1 2.5 23% Power 13.6 16.7 23% 67.2 79.2 18% Energy Segment 235.9 249.1 6% Revenue 52.4 67.4 29% Hydrocarbon 191.7 208.4 9% Energy Segment 14.8 11.7 -21% Power 44.2 40.7 -8% 8.8% 10.4% 1.7% Energy Segment 7.8% 9.1% 1.3% EBITDA Margin 9.7% 10.1% 0.4% Hydrocarbon 8.7% 9.9% 1.2% 5.2% 12.9% 7.7% Power 3.9% 6.5% 2.6% Q4 Q4 Y-o-Y Rs Bn FY22 FY23 Y-o-Y FY22 FY23 61.0 85.7 41% Hi-Tech Manufacturing 113.0 157.6 39% Order Inflow 7.2 2.8 -60% Heavy Engineering 32.2 36.4 13% 53.8 82.9 54% Defence Engineering 80.8 121.2 50% 17.6 21.3 21% Hi-Tech Manufacturing 59.4 65.3 10% Hi-Tech Manufacturing Segment Revenue 8.7 11.0 27% Heavy Engineering 27.2 32.6 20% 8.9 10.3 15% Defence Engineering 32.2 32.7 2% 24.0% 19.7% -4.3% Hi-Tech Manufacturing 19.6% 18.0% -1.7% EBITDA Margin 24.7% 16.7% -8.0% Heavy Engineering 19.0% 16.0% -3.0% 23.3% 22.8% -0.4% Defence Engineering 20.2% 20.0% -0.2% EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO#42Share in Profit/(Loss) of JVs/Associates Q4 FY22 Q4 FY23 Rs Bn FY22 FY23 0.32 0.10 L&T Power JVs 1.51 0.10 0.93 0.00 L&T IDPL Group* 0.21 (0.76) 0.07 0.01 Others** (0.44) (0.28) 1.32 0.12 Total 1.28 (0.94) * Profit consolidation of L&T IDPL at PAT level has been discontinued from Q4FY23, post signing of definitive agreement for sale of stake. The investment in the JV is classified as "Held for Sale" ** Others mainly includes Hydrocarbon and Defence JVs EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES LARSEN & TOUBRO