#1L RCI Industries & Technologies Limited Investor Presentation April 2017 RCI#2Disclaimer RCI This presentation has been prepared by RCI Industries and Technologies Limited (the "Company") solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2#3Table of Contents Company Overview ○ Business & Industry Overview Financial Highlights Way Ahead#4Company Overview#5Amongst leading manufacturers of Copper products in India RCI Amongst leading manufacturers of Copper products in India Multi-product portfolio Manufacturing & warehouse facilities Strong customer base Head quartered in Delhi with two plants in Himachal Pradesh RCI Strips RCI Copper & In addition to copper, capacity for production of brass, stainless steel and special alloys Flat products - copper, brass, aluminium and stainless steel sheets, strips, foils and coils etc Round products - annealed /un-annealed copper wires, bunched copper wires Tin Alloys Solder, Lead - free Solder - in form of bars, strips and sheets Handicrafts in brass and copper ■ Manufacturing at Nalagarh - 24,000 MT and Baddi -3,000 MT - increase to 24,000 MT in Q1FY18 ■ Average capacity utilization of both plants at 60-70% Advanced technology and high graded raw material deployed ■ Warehousing in Delhi, Maharashtra and Rajasthan ◉ Global customer network with strong presence in Middle East and Africa ■ Diverse customer portfolio - both domestic & overseas ■ 75% of sales from top 10 customers ◉ Products adhere to ISO certifications such as ISO 9001:2015 and 14001:2015 Products internationally certified 5#6Journey So Far 1992 ■ Established 100% EOU - Satya Metals as partnership Firm 2006 2014 ■ Merged manufacturing unit Satya Metals and changed name to RCI Copper ■ Shifted focus to manufacturing 2014 2016 RCI ■ RCI Industries & Technologies Limited incorporated as trader of Ferrous and Non Ferrous Metals ■ Listed on BSE SME Platform ■ Started subsidiary in Dubai - RCI World Trade Link DMCC ◉ Acquired M/s. Devi Metals; manufacturing unit in Baddi on April 2016 ■ Entry into flat products (strips, foils, coils, sheets) ■Listed on BSE Mainboard .... Conscious shift from trading to manufacturing to offer an integrated product portfolio 6#7Experienced Management Team Rajeev Gupta Chairman & MD ■ Graduate in commerce from Hindu College, Delhi University ■ Rich experience of 22 years in the industry Mrs. Mamta Gupta Director Mr. Raj Singh Jamwal Director Mr. Anil Kumar Jain Director Mr. I.P. Saboo CFO ■ Graduate from Delhi University Experience in human relations ■ Planned and directed strategies, development of advertising campaign, creative development ■ Retired Brigadier of Indian Army ■ M.Sc in Defence Studies from Madras University and ■ Diploma in Senior Defence management from Indore University ■ Graduate Diploma in Strategic Studies from Australian University ■ Masters in Management Studies from Osmania University ■ B Com from Delhi University ■ Experienced Corporate Planning professional with over 30 years experience Expertise in supply chain management and research & development ■ B.Com from Delhi University; Chartered Accountant; BGDBA from Annamalai University Comprehensive experience of 30 years in Finance and Taxation RCI 7#8Business & Industry Overview#9Industry Opportunity India - among top 20 major producers of copper globally ■ In FY16, copper ore production in India at 39 lakh tonnes was 11% higher compared to the previous year ■ Refined copper production in FY16 was ~7.9 lakh tonnes and the estimated consumption was ~ 6.5 lakh tonnes India is one of largest copper importers alongside China, Japan, South Korea and Germany ■ Falling prices of copper in international markets will benefit Indian manufacturers RCI Copper consumption in India recorded 5.9% CAGR in the last decade, second only to China ☐ Copper demand expected to grow at 9-10% Major consumers of copper products - Building and construction, engineering, transport & consumer durables ■ Over 30% of India's copper demand comes from telecom sector and 26% from electrical sector Key drivers for demand Required for end use sectors which are on fast growth track ■ Government push for infrastructure development ☐ Expanding domestic market in rural areas#10Diverse Product Portfolio with wide applications... Annealed/Un-Annealed Copper Wire & Bunched Copper Wire ■ Used in automotive cables, television & ■ electronic Industry, construction High tolerance bunched copper wire ropes used as connectors due to its flexibility and strength Copper/Brass - Foils / Coils ■ Used in Automobiles: radiators, bulb and lamp caps, imitation jewellery, eyelets, thimbles, clocks, pens and various sheet metal pressed components Tin Solder Wires/Strips and Bars ■ Used in all electronic appliances & goods, PCB, Mobiles, etc. RCI Stainless Steel - Strips/Sheets/Foils/Coils ■ Especially suited for small precision components requiring bending, drawing and punching operations ▪ Used in electrical, computer, telephone, watch, radio, tape recorders, thermostat, fountain pen, nibs, chemical industry, battery cell contacts flexible hoses etc. Copper/Brass Special Alloys Applications in houses, power grids and aircraft industry ■ Used in construction, cement industry, ship building and allied industries Indian Handicrafts ■ Over 1,000 handicraft products fabricated in Copper and Brass#11Key Strengths Multi-Product Portfolio ■ Well balanced product mix ■ Competitive pricing based on low making ■ charges Expanding range of products at regular intervals ■ Expertise to re-roll / process any special materials 02 20 Client Centric ■ Commitment to customer satisfaction " Catering to specific needs of diverse customer segments ■ Competitive edge in achieving stable growth and gaining new clients 04 H0 Focused Workforce ■ Dynamic, experienced leadership ■ Dedicated, well trained employee base 01 03 63 05 RCI Innovative Ideas ■ In-house R&D lab for new product ideas ■ Swift response to market conditions Adaptability to changes in business landscape ■ Utilization of advanced technology Quality Standards & Assurance ■ Adherence to quality standards at all stages of manufacturing High quality and prime grade raw material ■ Checked for dimensional accuracy & temper at each stage ■ Well equipped with all modern testing facilities to check for physical, mechanical and chemical properties 11#12Manufacturing and Warehousing Facilities Manufacturing Manufacturing Unit for Copper/Brass - Wire, Handicrafts, Tin Solder bars/alloys at Nalagarh : - ■ Products Manufactured - Annealed / un-annealed copper wires, bunched copper wires; Handicrafts and Art ware; Tin Solder/Alloys ■ Capacity of 24,000 MT Manufacturing Unit for Strips/Foils/Coils at Baddi : - ■ Products Manufactured - Copper/Brass/Stainless-Sheets / Strips / Foils/Coils etc. ■ Current capacity of 3,000 MT; to increase to 24,000 MT in Q1FY18 Average total capacity utilization 60-70% Warehousing Delhi 200 sq. m. warehousing at Vishwas Nagar Bhiwadi, Rajasthan - 780 sq. m. warehousing at Khushkhera Panvel, Maharashtra - 2,000 sq. m. warehousing in FTWZ, SEZ FS3 N/N CATE 12 RCI#13Key Customers HAVELLS MODVAK Manufactures. Engineers. Suppliers Finolex Cooling Since 1971 FSEM RADIATORS INDOASIANN energy management SURYA STEEL KDDL Limited Surya Power Solutions QI ① QUALITY INDUSTRIES PRECISION METALWORKS golden peakock OVERSEAS LIMITED TECHNOCRAFT INDUSTRIES INDIA LTD. REPL Alpha Radiator 903-464-0066 Grand RADIATORS RCI 13#14Certifications Certification of Registration RCI INDUSTRIES & TECHNOLOGIES LTD. Reg. Off >8-97, ALL HEAVENS BUILDING, WAZPUR INDUSTRIAL AREA, DELHI-110052 WORKS/UNITS-RC COPPER, NASRA NO. 377/175 & 278/175, VILLAGE RAM SINGH, MALAGARH DEST-SOLAN, HIMACHAL PRADESH-174101 RC STRIPS, PLOT NO.-, PSIDC IND. AREA, BADDE DISTT.-SOLAN, HIMACHAL PRADESH-173262 QA CERTIFICATION SERVICES PVT. LTD. Certification of Registration RCI INDUSTRIES & TECHNOLOGIES LTD. Reg. Off.-8-97, ALL HEAVENS BUILDING, WAZEPUR INDUSTRIAL AREA, DELI-110052 WORKS/UNITS-RCI COPPER, KASRA NO. 377/175 & 37/175 VILL-RAK RAM SING NALAGARH DEST-SOLAN, HIMACHAL PRADESH-174101 ROSTRIPS, PLOT NO-4, PSIDIC IND. AREA, BADDE DESTYSOLAN, HIMACHAL PRADESH-173202 QA CERTIFICATION SERVICES PVT. LTD. ISO 9001:2015 THE MANUFACTURER & SUPPLY OF COPPER, BRASS, SS, MS, ALUMINIUM STRIPS. SHEETS FOILS, WIRES, TIN, LEAD, ALLOY WIRES, STRIPS, GRASS & RELATED PRODUCTS Certificate No Q-RCA-11.17.024 ISO 14001:2015 THE MANUFACTURER & SUPPLY OF COPPER DRASS, SS, ES, ALUMINIUM STRIPS, SHEETS, FOILS, WIRES, TIN, LEAD ALLOY WIRES STRIPS, BRASS & RELATED PRODUCTS Certificate No-E-RC-11.17.002 Certificate Dry 2017 Date of inital Registration: Juary 2017 Coffice Expiry Dum 8th January 2000 Certificate Expiry Dus-3 Refer Wak JAS ANZ IAF C Corticate issue Date January 2017 Dee of al Registration: January 201 Carificate Expiry Dum: Juary 2020 Carsifionte Expiry Da-3 Years IAF JAS-ANZ CMD SA Certification Services Pvt. Ltd. DIRECTOR ICEO CMD CA Certification Services Pvt. Ltd. DIRECTOR ICEDI ISO 9001-2015 ISO 14001-2015 RCI 14#1501 Business Strategy Enhanced product range ■ Manufacturing of wide range in round and flat products ■ Value added products to meet complete customer requirement ■ Customisation as per specifications including in special materials Quality focus 03 Strengthening customer base Entering new geographies 04 02 80 ▪ World Class Testing Equipments & laboratory which includes spectrometer from SPECTRO Analytical Instruments GmbH, Germany ■ Commitment to maintain quality, delivery timings and volumes ■ Products adhere to ISO certifications such as ISO 9001:2015 and 14001:2015 ■ Secure repeat orders from existing customer base ■ Expand product mix to meet all customer requirements Entering new customer segments - defence and the mint ■ RCI World Trade Link DMCC set up in Dubai focused on trade in the Middle East ■ Exploring markets in Africa and Russia driven by expanding offerings portfolio RCI#16Financial Highlights#17Consolidated P&L Highlights - 9M FY17 Revenue Rs. 1192.04 cr 49.53% EBTIDA Rs. 25.95 cr 23.39% PAT Rs. 13.05 cr 42.93% EPS Rs. 11.16 33.17% RCI 17#18Consolidated 9M FY17 Highlights Rs. Crs 9M FY17 9M FY16 Total Income from Operations 1192.04 797.18 YoY % 49.53% Raw Materials 1152.70 762.64 Employee Cost Other Cost Total Expenditure EBITDA Interest 3.51 0.84 9.88 12.67 1166.09 776.15 25.95 21.03 23.39% 9.78 10.55 Depreciation 1.50 0.49 Other Income 0.59 0.13 Exceptional Item 0.00 0.00 Profit Before Tax 15.25 10.12 Tax 2.20 0.99 PAT 13.05 9.13 42.93% EPS in Rs. 11.16 8.38 RCI 18#19Consolidated P&L Highlights - FY16 Revenue Rs. 1,270.19 cr 29.27% EBTIDA Rs. 28.73 cr 89.86% PAT Rs. 14.93 cr 141.35% EPS Rs. 13.70 141.62% RCI 19#20Consolidated Annual Financial Highlights - FY16 Production Volume (MT) 7,625 6,315 15,021 I Revenue (Rs. Crs) 1,270.19 982.57 FY14 FY15 FY16 I EBITDA (Rs. Crs) 427.79 FY14 FY15 FY16 PAT (Rs. Crs) RCI 30.00 28.73 16.00 14.93 14.00 25.00 12.00 20.00 10.00 15.13 15.00 8.00 6.18 6.00 10.00 5.91 5.00 4.00 1.79 2.00 0.00 0.00 FY14 FY15 FY16 FY14 FY15 FY16 20 20#21Consolidated Key Ratios - FY16 RoA 3.95% 168 bps RCI RoE 23.85% 1,102 bps ROCE 19.60% 783 bps 21 21#22ROA (%) Key Ratios 1.58% 2.27% 3.95% FY14 FY15 FY16 ROCE (%) ROE (%) 8.78% 11.77% RCI 19.60% FY14 FY15 FY16 12.83% 23.85% 4.00% FY14 FY15 FY16 22 222#23Consolidated Annual Profitability Highlights RCI Rs. Crs FY16 FY15 YoY % Total Income from Operations 1270.19 982.57 29.27% Raw Materials 1220.05 941.16 Employee Cost 1.16 0.95 Other Cost 20.25 25.32 Total Expenditure EBITDA Interest 1241.46 967.43 28.73 15.13 89.86% 12.19 7.98 Depreciation 0.78 0.63 Other Income 0.89 0.53 Exceptional Item 0.00 0.00 Profit Before Tax 16.65 7.05 Tax 1.72 0.87 PAT 14.93 6.18 141.35% EPS in Rs. 13.70 5.67 23 223#24as on – FY16 Consolidated Balance Sheet Highlights as on - RCI Rs. Crs Mar-16 Mar-15 Rs. Crs Mar-16 Mar-15 Shareholder's Funds 62.58 48.20 Non-current assets 42.68 4.57 Share capital 10.90 10.90 Fixed assets 4.77 3.02 Reserves & Surplus 51.68 37.30 Deferred tax assets 0.03 0.00 Non-current liabilities 70.93 31.75 Non-current Investments 36.45 0.00 Long term borrowings 25.99 1.68 Long-term loans & advances 1.43 1.55 Defer Tax liabilities 0.00 0.01 Other non-current assets 0.00 0.00 Other Long-Term liabilities 44.85 30.00 Current assets 335.68 267.75 Long-Term Provisions 0.10 0.07 Current investments 0.0 0.00 Current liabilities 244.85 192.38 Inventories 74.15 60.87 Short Term Borrowings 76.06 49.43 Trade receivables 225.46 165.41 Trade Payables 147.01 117.20 Cash & Cash equivalents 7.54 6.14 Other Current liabilities 20.03 24.79 Short-term loans & Advances 27.24 34.43 Short-term provisions 1.75 0.94 Other Current Assets 1.29 0.90 Total Equities & Liabilities 378.36 272.32 Total Assets 378.36 272.32 24 24#25Way Ahead#26Way Ahead 17 01 2 02 03 04 Shift from Trading to Manufacturing ■Increased production capacity through acquisition capacity enhancement Increased revenue and improved margins post enhanced capacities Foray into Defence and the Mint ▪ New high-value products for supply to Defence and Mint segments ■ In process of securing license for these segments RCI Focus on Value-Added Products ■ To manufacture flat rolls which have better realisations ■ To manufacture a unique tape (copper and stainless steel) which is currently imported ■ Production at Baddi plant for tin strips / wire and other articles of tin CAPEX for enhanced Production Capacity ■ ~Rs. 50 crore capex towards enhancing existing capacity Capex done through preferential issue and internal accruals " To increase capacity from 3,000 MT to 24,000 MT 26#27Thank You Bombay Stock Exchange Limited BSE The edge is efficiency RCI 537254 Bloomberg RCIT IN REUTERS DRCII.BO For further information, please contact: Company: RCI Industries & Technologies Limited CIN No. L74900DL1992 PLC047055 Mr. Inder Prakash Saboo Chief Financial Officer [email protected] Mr. Abhishek Kedia Company Secretary [email protected] www.rciind.com Investor Relations Advisors : Bridge Investor Relations Pvt. Ltd. CIN No. U74900MH2016PTC273679 Mr. Dheeraj Manwani [email protected] Ms. Shivangi Bubna [email protected] www.bridge-ir.com 27 27