#1Q3 PERFORMANCE, 2018 - 19 SKIPPER - Limited SKIPPER LIMITED INVESTOR PRESENTATION Broad-basing the pyramid L N 00#2SKIPPER LIMITED INVESTOR PRESENTATION About Us L N SKIPPER - Limited 00#3SKIPPER WHO WE ARE Limited Skipper Limited is India's largest and world's most competitive integrated transmission tower manufacturing company 3#4SKIPPER KEY FACTS Limited • Flagship company of the S.K. Bansal Group (incorporated 1981). • Angle rolling, tower, accessories and fastener manufacture coupled with EPC line construction • One of India's largest and fastest growing polymer pipes & fittings companies izi • Four Power Grid Corporation of India- approved transmission tower and pole manufacturing plants (combined engineering capacity 300,000 MTPA) Among the most effective knowledge pools in the sector comprising 2,450+ members Widely respected player; awarded Largest Tower Supplier Award by Power Grid for 3rd consecutive year • Awarded Best Industry in Water Resources sector by Central Board of Irrigation and Power. 4#5SKIPPER LIMITED INVESTOR PRESENTATION Key Management L N SKIPPER - Limited 00#6SKIPPER BOARD OF DIRECTORS Limited - WHOLE TIME Sajan Kumar Bansal Managing Director He is the driving force behind the company's exponential growth since the beginning of the new millennium. Under his visionary leadership, the company has grown from a single unit, single product manufacturer to multi-unit, multi product manufacturing, ranging from Steel to Polymer. Sharan Bansal Director A mechanical engineering graduate, he is heading the Tower manufacturing and EPC business of the company. He's taken the company to a leadership position in this industry. Devesh Bansal Director With a Master's in International Business degree under his belt, he is heading the Tubes and Tubular products divisions of the company. He is also responsible for the group's upstream expansions. Siddharth Bansal Director Heading the company's first diversification into non steel products, he is responsible for the Polymer product manufacturing divisions. He has a degree in Entrepreneurship from University of Illinois, USA. Yash Pall Jain Director He is a B.com graduate from Punjab University and has an experience of over 35 years in various leading Industrial houses. In his corporate career he has held several responsible and important portfolios. 00 6#7SKIPPER BOARD OF DIRECTORS - INDEPENDENT Limited Mr. Amit Kiran Deb IAS (Retd.), Chairman He has held several responsible and important portfolios in the West Bengal State Government, before finally retiring as Chief Secretary and Tourism Secretary. He has profound knowledge and experience in various industries. Mrs. Mamta Binani Immediate Past President ICSI She is one of the leading Practicing Company Secretary from Eastern India and her professional career includes 17 years of experience in corporate consultation & advisory. Mr. Joginder Pal Dua Ex CMD - Allahabad Bank He has been with Allahabad Bank for 5 years and retired as Chairman of (B.I.F.R.). He has held several portfolios in reputed banking organizations and was on the governing board of several education institutions. Mr. Ashok Bhandari C. A. He has profound experience in working with different industries. He has held various notable positions in different sectors and finally retired as the CFO in Shree Cement Limited, a B.G. Bangur Company. Sri Pramod Kumar Shah C.A He is a Fellow member of the Institute of Chartered Accountants of India and has 35 years of experience in practicing accountancy with an expertise in the area of internal audit. He has graduated with a Bachelor's Degree in Commerce from Calcutta University. 7#8SKIPPER PRODUCT OFFERINGS Limited SKIPPER: ONE-STOP SOLUTION PROVIDER Engineering products Capacity: 300,000 MTPA Polymer products Capacity: 51,000 MTPA • Power Transmission Tower • UPVC Pipes • CPVC Pipes • Monopoles • SWR Pipes • HDPE Pipes • Power Distribution Poles • MS & High Tensile Angles • Solar Structures • Fasteners • Tower Accessories • Fittings Infrastructure projects • Transmission Line EPC Underground Utility laying by HDD . Railway Structures Highlights Positioned as one of the world's leading transmission tower manufacturer; largest in India Highlights . Only polymer pipe company in India to implement TOC in its operations Highlights • Forward integration activity • Aimed at high-margin projects Revenues Rs17,782mn 4 yr CAGR 16.8% Revenues Rs2,100mn 4 yr CAGR 37.3% Revenues Rs855mn 4 yr CAGR 33.4%#9SKIPPER FOOTPRINTS Limited SOUTH AMERICA Peru, Colombia, Chile, Paraguay, Panama EUROPE UK, Germany, Spain AFRICA Kenya, Egypt, Ghana, Nigeria, Zambia, Sierra Leone Guinea, South Africa, Botswana, Burundi, Angola MIDDLE EAST Jordan, Saudi Arabia, UAE SOUTH AND SOUTH EAST ASIA Nepal, Bangladesh, Sri Lanka, Indonesia, Philippines, Malaysia AUSTRALIA GLOBAL PRESENCE#10SKIPPER LIMITED Performance Update Q3 & 9M FY'19 Update L SKIPPER - Limited N 00#11SKIPPER BUSINESS REPORT CARD Limited The reason for decline in Q3 Q3 Revenue impacted Financial Performance Q3 FY 19 Rs in Mn • Consciously slowed down supplies to the customer unwilling to give secured payment terms SI Profit & Loss Summary Q3 FY'19 Q3 FY'18 Slower Project Execution; Sites not ready for want of Govt Approvals. 1 Net Revenue (Excl Excise Duty) 4,348.2 5,664.2 • Lack of short term orders in market 2 • Structural changes undergoing Operating EBITDA (without Forex) 270.6 579.2 implementation in Polymer Segment Profitability Margins impacted % of Net Revenue 6.2% 10.2% 3 Depreciation 85.2 117.6 Higher incidence of Fixed cost getting absorbed on reduced sales 4 Interest Expenses 235.0 176.3 Sustained high raw material prices of both Steel & Zinc for most part of the quarter had its 5 Other Income 3.5 3.3 impact on Fixed Price contracts • Slow off take and delay in execution of T&D 6 Operating PBT (2-3-4+5) (46.1) 288.6 projects - led to lower utilisation of plant capacities. 7 Forex Gain / Loss 151.3 161.6 • Increase in working capital borrowing on account of reduced payables Profit Before Tax (Reported PBT) (6+7) 105.2 450.2 Management ideology of not chasing growth 9 Tax 40.6 158.2 at the cost of financial discipline will be maintained and adhered. 10 Profit After Tax (Reported PAT) (8-9) 64.6 292.0 11#12SKIPPER BUSINESS REPORT CARD Limited Financial Performance 9M FY 19 Rs in Mn SI Profit & Loss Summary 9M FY'19 9M FY'18 1 Net Revenue (Excl Excise Duty) 14,374.8 14,808.7 2 Operating EBITDA (without Forex) 1,313.7 1,644.0 % of Net Revenue 9.1% 11.1% 3 Depreciation 297.0 345.6 S Interest Expenses 765.5 545.1 5 Other Income 10.1 14.1 6 Operating PBT (2-3-4+5) 261.3 767.4 7 Forex Gain / Loss (54.0) 295.8 8 Profit Before Tax (Reported PBT) (6+7) 207.3 1,063.2 9 Tax 72.8 379.0 10 Profit After Tax (Reported PAT) (8-9) 134.5 684.2 12#13SKIPPER SEGMENT REPORT Limited Segment Performance Q3 & 9M FY'19 Q3 Polymer Infra 9% Segment Financial Summary FY'19 Q3 FY'18 9M FY'19 9M FY'18 3% Net revenue 3,839.4 4,863.3 12,656.3 12,858.1 Engg. EBIDTA (w/o forex) 267.5 496.4 1,272.1 1,436.8 Products % of Revenue 7.0% 10.2% 10.0% 11.1% Net revenue 331.0 539.9 1,250.8 1,352.0 Polymer EBIDTA (w/o forex) 3.3 51.8 15.8 135.1 products % of Revenue 1.0% 9.6% 1.3% 10.0% Net revenue 177.9 261.0 467.6 598.5 Engg 88% Infra projects EBIDTA (w/o forex) (0.2) 30.9 25.9 72.1 % of Revenue -0.1% 11.9% 5.5% 12.0% Total Net revenue EBIDTA (w/o forex) 4,348.2 5,664.2 14,374.7 14,808.7 270.7 579.1 1,313.7 1,643.9 Revenue Mix - 9M FY'19 % of Revenue 6.2% 10.2% 9.1% 11.1% Note: Segment EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of sales in their respective segment 13#14SKIPPER ORDER BOOK PIE Limited Engineering Products Order Book Composition December 2018 YTD Order Book Rs 2,638 Crores - YTD T&D Order Book Rs 2,182 Crores 5% 12% T&D Breakup 83% T&D Telecom ■Railways Domestic - 87% Export - 13% 43% 16% 41% ■PGCIL SEB & Others Export 14#15SKIPPER ORDER STRUCTURE Limited - Engineering Products – Order Inflow Composition FY'19 Qtr Wise - Order Inflow Total 1,141 Crores 506 Q3 FY'19 Order Inflow Rs 506 Crores 225 410 Q1 Fy'19 Q2 FY'19 Q3 FY'19 21% Q3 Inflow Composition PGCIL ■T&D - Export Strong Bidding Pipeline of 3,730 Crores ; International - 2,450 Cr & Domestic 1,280 Cr 33% 14% 32% SEB & Others Telecom & Railways 15#16SKIPPER LIMITED INVESTOR PRESENTATION Introspection L N 00 SKIPPER - Limited#17SKIPPER BUSINESS BOTTLENECKS Limited II. Increase in raw material costs Skipper's response: Absorbed cost increase Slower orders from Power Grid, India's largest T&D company Skipper's response: Accelerated sectoral and customer diversification ☑ Sectoral liquidity crisis Skipper's response: Engaged in selective business; secured payment terms first; conscious decision to curb revenues Challenges And responses 12. Delay in availability of project sites Skipper's response: Increase the share of non- T&D and International business in the revenue mix Decline in capacity utilisation Skipper's response: Widening the product mix using the same infrastructure#18SKIPPER LOGICAL REASONING Limited THE INVISIBLE POSITIVES IN THE DECLINE 1 Skipper reported consecutive q-o-q growth in order book inflow; order inflow from PGCIL reported a decline; Skipper's YTD order inflow at Rs 1,141 cr 2 Skipper continued to remain profitable; cash profit of Rs 46 cr in the first nine months of 2018- 19 3 Skipper continued to increase its non- India exposure; received first time enquiry from a number of countries 4 Skipper continued to exercise a bidding discipline; abstained from irrational bidding; protected Balance Sheet integrity 18#19SKIPPER BUSINESS OUTLOOK Limited PERFORMANCE OUTLOOK Company expects to achieve revenue of last year on back of stronger execution planned in last quarter Focus on strengthening the international T&D order book to benefit from start of FY 2020 Strong rebound expected in domestic T&D action both on Ordering and Execution front post central elections Strong existing order book will help to clock annual revenue growth of 15-20% in FY'20 Desired EBITDA margin focus of 13-14% in FY'20 Volume-value play to drive shareholder value 19#20SKIPPER BUSINESS MANTRA Limited % THE BIG MESSAGE C Profitability in a downturn is a validation of Skipper's business model Conscious slowing down: Not chase growth at the cost of financial discipline Sectoral consolidation to lead to next rebound; opportunity to switch sectors based on margin Skipper opportunity- ready through re- navigated business model Progressive broadbasing to strengthen revenues and margins - overall quality of business positive 20 20#21Core Strategy BROADBASING OUR PYRAMIDS L N 00 SKIPPER - Limited#22SKIPPER WHAT IS BROAD BASING THE PYRAMID? Limited 1 ENGINEERING PRODUCTS BUSINESS Broadbasing the number of sectors addressed Riding the growth of some fast- growing segments into the long-term like telecom and railways Broadbasing the customer mix within each sector (government and non-government) Riding the inflection point within India where the power transmission sector opened to private players 2 3 Broadbasing the number of customers Addressing the needs of a reasonable number of the large and a large number of small fast growing companies Broadbasing the pyramid Broadbasing the countries of our presence Entering new geographies to derisk from an excessive dependence on one or few economies 4 22#23SKIPPER | WHY BROADBASING THE PYRAMID? Limited WHY WE ARE BROADBASING To strengthen margins; some sectors promise lower working capital cycle To be able to capitalise on sectoral upturns with speed; faster off the blocks To strengthen competitiveness; last person standing To transform from an Indian company into a global player To report a lower sectoral beta; smooth the performance curves To progress towards any- market business sustainability 23#24SKIPPER | STIMULUS BEHIND BROAD BASING THE PYRAMID? Limited WHAT WILL FACILITATE OUR BROADBASING Deep knowledge capital on product manufacture, quality standards and certifications Fungible manufacturing capacity (from one product to another with no capex); only integrated manufacturer in the sector Strategic location; proximity to raw material sources; freight competitive Existing presence in 30+ countries; relationships with 100+ global EPC players Progressively enhanced capacity utilisation, revenues and amortisaton economies Global quality certifications and customer approvals in place - a ready foundation waiting to be scaled Ability to enter segments with low capital cost (strengthening competitiveness from day one) Low long-term debt on the books 24#25SKIPPER KEY DRIVERS OF THE IDEA Limited THE IMPACT OF THE BROADBASING: FOUR DRIVERS Focus on projects coming out of PGCIL, SEB and private transmission players (Domestic T&D) Building credential and relationship with global EPC players to gain presence in international market Focus on telecom and railways sectors (domestic sectoral diversification) Increased bidding for projects promising superior IRR Order book break-up as per segments 5% 2,528 Cr 5% 12% 95% T&D ■Telecom ■T&D As on 31st Dec, FY18 2,638 Cr 83% Telecom Railways As on 31st Dec, FY19 T&D order book break-up as per segments 16% 2,405 Cr 51% 33% 16% 41% 43% 2,182 Cr PGCIL SEB & Others Exports As on 31st Dec, FY18 PGCIL SEB & Others Exports As on 31st Dec, FY19 25#26$KIPPER Limited Driven by the philosophy of profitable growth BROADBASING WOVEN AROUND FINANCIAL DISCIPLINE Bids for projects Believes that no that meet basic IRR criteria business is better than bad business Consistent resistance to chasing volumes over profits Can temporarily and selectively sacrifice margins for a larger strategic market entry and growth Geographic diversification (global) dictated by large volumes, superior realisations and quicker receivables Invested in pre-bid team capabilities; attractive strike rate of around 50% 26#27SKIPPER LIMITED INVESTOR PRESENTATION Future Ready L N SKIPPER - Limited 00#28SKIPPER EXPLORING NEW GEOGRAPHIES Limited BROADBASING TO REDUCE DOMESTIC DEPENDENCE • Opportunity-ready: Certified by prominent international organizations for confidence- enhancing certifications Established traction: Working with over 100 Global EPC player; Enlisted 11 prominent customers in two years • Creditable beginning: first-time enquiries from South Korea, Uruguay, Paraguay, Romania, Croatia, Mexico, Panama, Poland, Afghanistan, Russia, Australia and Nicaragua among others • • • Optimistic outlook: Positioned to grow exports to 40% of revenues in next two year and to 50% in three years (15% today) Competitiveness: Increasing cost of labour and capacity shut downs in China is making Indian players like us globally competitive Visible brand: Participated in around 25 global exhibitions in two years to enhance visibility International certifications Certification Country CFE/LAPEM CWB DEWA ROHAS CE CERTIFICATION ACHILLES/STATNET Saudi Electric Company The Jordanian Electric Power Company Ltd RETIE EETC BPC KETRACO TCN NGCP Mexico Canada & USA Dubai Malaysia Europe Nordics Saudi Arabia Jordan Colombia Egypt Bhutan Kenya Nigeria Philippines 28#29SKIPPER LEADERSHIP POSITION Limited SKIPPER IS CLEARLY POISED TO BE IN THE WINNING SPOT IN THE INTERNATIONAL T&D SECTOR . Skipper is the highest accredited manufacturers in India for supplying to global markets Largest and lowest cost manufacturer out of India and one of the lowest globally In between 2005 – 15 Skipper supported multiple Indian non integrated T&D EPC Contractors (holding major market share) with low cost reliable Transmission Tower supplies (Towers are almost 50% of the value of any project). Currently replicating the same format in International markets with major International EPC contractors, helping them leverage their relations with the Utilities better Increase in approvals such as CWB (North America), Lapem (Central America & Mexico), CE (Europe), DEWA (Middle east), Achilles (Nordic countries) and Sirim (South East Asia) which gives it better access to T&D business in these regions. Continuously increasing, Utility approval list with more key utilities in the European markets 29#30SKIPPER GROWING GLOBAL COMPETITIVENESS Limited SKIPPER S CHINESE MANUFACTURERS WHAT MAKES US MORE COMPETITIVE Currency Factor: The current rupee depreciation has made us more competitive in the export markets and is now bringing more opportunities on our way. Indian currency over last 2 years has depreciated about 10-11% whereas Chinese currency has remained flat in this period Higher Price Chinese manufacturers are almost 10-15% higher priced than Indian manufacturers, owing to un favorable currency and much higher labor costs. Limited Capacities to offer: Chinese manufacturers have cut capacities owing to pollution issues and the remaining capacity is tied up in their Belt - Road project so are quoting very long lead times. Reliability: More and more global utilities are interested to source from Indian manufacturers compared to Chinese due to regular quality issues over the years. 30#31SKIPPER GROWING GLOBAL COMPETITIVENESS Limited Considerable increase in Bidding Volumes from International T&D Sector Bidding Volumes T&D sector 2017-18 Rs in Cr 2018-19 Change Rs in Cr % International T&D 810 2,450 202% Domestic T&D 1,625 1,280 -27% Total 2,435 3,730 53% FY 2018-19 FY 2017-18 67% 33% Growing International Share 34% 66% Domestic T&D International T&D Domestic T&D International T&D These developments reinforce our belief of a significant turnaround in the international markets. 31#32SKIPPER GLOBAL NEED Limited GLOBAL T&D INVESTMENT OPPORTUNITIES According to World Energy Outlook (WEO) 2015, a total of US$ 8.4 trillion investments are expected to flow in the global T&D investments between 2015 and 2040, averaging US$320 billion per year. Europe 1092 Americas 893 Middle East Latin America Source: WEO 2015, IEA 1 World Energy Outlook 2015 2 World Energy Outlook 2015 494 842 Africa 469 Eurasia 284 3,783 Asia 524 Asia Oceanic 32#33SKIPPER INDIA STORY Limited T&D INDUSTRY OVERVIEW IN INDIA Historical skew between generation and T&D asset creation; shortage of power evacuation capacity Skew correction across the last decade: substantial increase in T&D capacity amounting to 345 GW as on September 2019 which is estimated to grow at a CAGR of 6.5% between 2018 and 2023. Part of an overarching government agenda: one nation, one grid National power grid backbone enabling regions of power surplus to feed regions of power deficit Part of a long-term structural correction to maximise national resource use and create one consolidated market • This structural correction to widen and deepen: large room for India's transmission network to grow India Transmission capex estimated at INR 2.6 trillion (+49%) in the 13th Plan. 33#34SKIPPER DOMESTIC OPPORTUNITIES Limited STRONG OPPORTUNITY IN INDIA'S T&D SECTOR Planned government transmission sector investment of Rs 2.6 lakh crore in FY17-22; estimated Rs 1.3 lakh crore allocated for intra-state transmission capacity. SEBS and private players to drive orders Village electrification, railway electrification, enhanced public-private participation and Electricity for All by 2019 to drive sectoral rebound 175 GW renewable energy capacity addition targeted by 2022 - an unprecedented opportunity Rs 50,000 cr Plus Green Corridor Projects (Lines being built in Western region catering to Renewable power sources) Total line capacity 11th Plan: 2,57,481 CKM • Dedicated schemes of Rs 1.09 lakh cr to provide 24x7 power (rural and urban) • • Unprecedented Rs 1 lakh cr allocated by Central government for national transmission grid Growing transmission focus with substantial line capacity addition from 11th Plan to 13th Plan 12th Plan: 3,64,921 CKM • 100,000+ CKM transmission lines at 220 kV+ projected for 13th Plan R-APDRP launched by Ministry of Power; upgradation of transmission and distribution network to reduce AT&T losses to 15% Growing participation in tariff-based competitive bidding (TBCB) by Indian private sector giants (Sterlite, Essel and Adani) creating multiple revenue engines SAARC keen to develop robust transmission grid to enhance pan-sub-continental power trade • Growing popularity of monopoles 13th Plan: 4,70,515 CKM 34#35SKIPPER HOW WE PERFORMED IN Limited Q3 2018-19 EXPECTED TRANSMISSION SYSTEM ADDITION DURING 2017-22 Transmission line As of March 2017 length(ckt. km) Addition during 2017-18 Planned addition during (till September 2017) 2017-22 Balance capacity to be added by 2022 HVDC (800/500 kV) 15,556 4,280 4,280 765 kV 31,240 2,046 27,300 25,254 400 kV 1,57,787 8,678 46,000 37,322 220 kV 1,63,268 1,627 28,000 26,173 Total 3,67,851 12,551 1,05,580 93,029 HDVC capacity (MW) +/-800 kV 5,000 3,000 14,000 11,000 +/-500 kV 13,500 Total 19,500 14,000 11,000 Substation capacity (MVA) 765 kV 1,67,500 10,000 1,14,000 1,04,000 400 kV 2,40,807 20,445 1,03,000 82,555 220 kV 3,12,958 8,620 75,000 66,380 Total 7,21,265 39,065 2,92,000 2,52,935 Source: Central Electricity Authority 35#36SKIPPER POSITIVE OUTLOOK Limited REASONS FOR LONG-TERM SECTORAL OPTIMISM • India the fastest growing major global economy; expected to quadruple and emerge as a $ 10 trn economy in the next 15 years India's power appetite projected to increase [4]x in line with its growing economy in the next decade • India extensively under-penetrated: per capita power consumption considerably lower than peer countries which is estimated to reach 3000 units by 2040 compared to 1150 units in 2018. Three forecasted drivers of India's power consumption: organic increase in demand in a growing economy; under-penetration likely to correct (supply likely to increase demand)/ substantial growth of renewable energy 36#37SKIPPER GAME POINT Limited EMERGING GROWTH DRIVERS RAILWAYS & TELECOM ■ Existing capacities and capabilities fungible across sectors ■ The greater the fungibility, the superior the return on gross block ■ Margins-enhancing competitive advantage ■ Will progressively enhance capacity utilisation, revenues and amortisaton economies Railways Around 6,000 km of electrification planned annually for the next three-four years • CORE approvals for all plants after Uluberia expected soon This will enable Skipper to utilise its capacity (across T&D, Railways and Telecom). Telecom Accelerating data boom: 5G rollout expected to drive next stage of tower rollout Significant presence in telecom towers; preferred tower supplier for Jio and all major domestic telecom companies Alliance with Ramboll - Denmark for technical design/support in process and quality assurance 37#38SKIPPER RAILWAY ELECTRIFICATION SECTOR Limited RAILWAYS ELECTRIFICATION 8000 4000 Large and robust growth plan in the pipeline: multi-year growth outlook Projected spending of Rs 35,000 cr over a period of next 3-4 lined up for Railway Electrification in India; 40-45% of this to get invested in Rail Structures Proposed electrification of 6,000 km network in 2018-19 and 7,000 km route in 2019-20 Projects of Rs 40,000 cr-plus to connect capitals of five NE states and border areas with rest of the country and areas bordering China, Myanmar and Bangladesh with the rest of the country. Being an East India player we are logistically well placed to target these large upcoming opportunities Railway up-gradation (Rs in Cr) In process of seeking CORE approval for all the remaining plant (left after Ulberia) to manufacture and supply various types of Railway overhead wiring support structures. 0 2016-17 2017-18 2018-19 2019-20 2020-21 38#39SKIPPER LEADERSHIP POSITION Limited SKIPPER IS CLEARLY POISED TO BE IN THE WINNING SPOT IN THE RAILWAY SECTOR . Large engineering capacity which can be deployed to make Railway Masts Low cost base of manufacturing One plant already approved - three more under approval • Integrated manufacturing facility with own raw material rolling facility 39#402022 2017 • SKIPPER TELECOM SECTOR Limited TELECOM TOWER • India needs around 100,000 additional towers to address growth National Telecom Policy aims to inspire $100 bn investment in five years • India's 30 per cent broadband penetration leaves large headroom • Sector added 65,000 mobile towers in two years 1.4 bn China Customers 1.94 mn Telecom tower Expansion of 4G, 5G, Artificial Intelligence, Virtual Reality, Internet of things and M2M among others are driving the need for more towers 1.18bn 0.46 mn India Customers Telecom towers INDIA ON THE CUSP OF MOBILE DATA EXPLOSION India;s smartphone users will more than The number of connected devices will boom Average mobile data consumption per month double by 2022 (in mn) in india (in bn) in India (in gigabytes) 2022 2017 2022 2017 0 300 600 900 0 0.4 0.8 1.2 1.6 2.0 2.4 0 6 12 12 18 40#41SKIPPER LEADERSHIP POSITION Limited SKIPPER IS CLEARLY SET TO BE IN THE WINNING SPOT IN THE TELECOM SECTOR • Large engineering capacity to support manufacturing of Telecom structures Proximity to focus Telcos markets - East & North East Tie up with one of world's leading tower design company - Ramboll Long standing relationships with major telecos in India and abroad ((0)) 41#42SKIPPER POLYMER PRODUCTS SEGMENT Limited SKIPPER'S POLYMER BUSINESS Пи Polymer manufacturing capacity of 51,000 MTPA Plants invested state-of-the-art manufacturing technology CERTIFIED 70%+ gross block less than six years old Among few Indian companies assured of CPVC for pipes manufacture One of few Indian companies with NSF certification Quality certifications • ASTM D-1785, ASTM D-2467, ASTM D-2846 • IS: 12818 • IS: 13592 • IS: 4985 • IS: 15778 • IS: 13592 • IS: 14735 • IS: 10124 • IS: 14182 • NSF 42#43SKIPPER STRATEGIC PARTNERSHIP Limited PARTNERSHIP WITH VECTOR CONSULTING VECTOR CONSULTING GROUP Skipper Pipes partnered Vector Consulting Group VCG a leading management consulting firm in India Partnership to increase retail market share and transform supply chain Directed to gain decisive competitive advantage Objectives To increase market share To build a robust sales organization with strong distribution 'Pull'-based product replenishment system; high retail availability; lower corporate inventory. Processes directed to establish stronger ties with channel partners Developing partnerships with trade influencers through a long-term loyalty program 43#44SKIPPER THEORY OF CONSTRAINTS Limited OUR USP Skipper is the only Indian polymer pipe company to implement Theory of Constraints (TOC) approach in an organized manner Directed to empower the supply chain processes and systems Partnering benefits: Exponential Sales Growth & Gain in Market Share Robust Processes & Systems in place to improve profitability • Consistent availability of entire range of products at billing points • Improvement in working capital cycle and reduction of inventory days Gain of more output from the current capacity Improvement in ROI to dealers and distributors 44#45SKIPPER LIMITED INVESTOR PRESENTATION Performance Trends L N SKIPPER - Limited 00#46SKIPPER PERFORMANCE TRENDS Limited REVENUE & PROFITABILITY Net Sales 20000 Rs in Mn EBITDA & Margins 3500 20,737 EBITDA 16.9% 15.0% Rs in Mn 20.0% →% of Sales 15000 16,646 14,624 12,702 10000 10,415 2500 16.4% 14.6% 15.0% 10.6% 3,026 1500 2,722 10.0% 2,152 2,192 1,102 500 5.0% 5000 FY'14 FY'15 FY'16 FY'17 FY'18 FY'14 FY'15 FY'16 FY'17 FY'18 12.14 11.50 8.72 9.30 PBT & PAT 2000 Rs in Mn 15.00 EPS (FV Rs 1/-) 1600 1,767 1,804 1,433 1200 1,366 800 10.00 1,242 1,178 951 892 5.00 2.72 400 367 269 0 0.00 FY'14 FY'15 FY'16 FY'17 FY'18 FY'14 FY'15 FY'16 FY'17 FY'18 46 Rs#47SKIPPER PERFORMANCE TRENDS Limited PERFORMANCE & LEVERAGE RATIO Debt Equity 2.00 Debt / EBITDA Times (X) 4.00 3.51 3.00 ■Gross Debt Equity Ratio ■Net Debt Equity Ratio Times (X) 1.70 1.50 1.59 1.28 1.24 2.14 1.00 1.09 1.11 2.00 1.78 1.61 1.64 0.83 0.78 0.78 0.75 0.50 1.00 0.00 0.00 FY'14 FY'15 FY'16 FY'17 FY'18 FY'14 FY'15 FY'16 FY'17 FY'18 4.00 3.00 Interest Coverage 2.00 1.61 1.00 ROCE Times (X) 30.0% 3.63 3.51 3.34 3.30 20.0% 15.8% 10.0% 28.5% 25.2% 23.7% 22.8% 0.00 0.0% FY'14 FY'15 FY'16 FY'17 FY'18 FY'14 FY'15 FY'16 FY'17 FY'18 47#48SKIPPER PERFORMANCE TRENDS Limited Rs in Mn 30,000 ENGINEERING ORDER BOOK SIZE 25,890 26,270 25,000 24,485 24,290. 20,000 15,000 10,000 12,913 FY'14 FY'15 FY'16 FY'17 FY'18 Order Book 48#49SKIPPER HONORS Limited AWARDS AND ACCOLADES पावरविड ㄓ Global HR Excellence Award AWARD: EMERGING POWER YEAR EPC PLAYER GIVEN BY: EPC WORLD AWARD: GLOBAL HR EXCELLENCE GIVEN BY: WORLD HRD CONGRESS AWARD: NO. 1 EMERGING BRAND IN POLYMER PIPES & FITTINGS GIVEN BY: WCRC कारपोरेशन ऑफ इंडिया लिमिटेड AWARD: THE LARGEST TOWER SUPPLIER FOR 3rd CONSECUTIVE GIVEN BY: POWER GRID CORPORATION OF INDIA LTD. (PGCIL) The Ecosa Thos POWER FOCUS Sterite Power The New Certificate of Appreciation o Thank you Druh Sal Skyper Linded for marble con in the Power Sector EEPCINDIA Awards National Award for Export Excellence EEPC ISA SKIPPER LIMITED Star Primer Award for the year in the part grap facts el machinery and equipment, Large Enterprise LETHICAL Certificate of Achievement CONSTRUCTION TIMES BUILDERS AWARD 2017 ARK Events & Media plyte for ending achie Contribution to Real Estate Sector Skipper Limited Best Polymer Pipes & Fittings Brand of the Year Awarded on the 13th May 2017 ETHICAL COMPANY Skipper Limited 420 AWARD: MOST VALUABLE CONTRIBUTION TO POWER INDUSTRY GIVEN BY: ET EDGE AWARD: STAR PERFORMER AWARD FOR THE YEAR 2015-16 GIVEN BY: EEP C INDIA AWARD: THE BEST POLYMER BRAND GIVEN BY: CONSTRICTION TIMES AWARD: MOST ETHICAL COMPANY GIVEN BY: WORLD CSR DAY 49#50DISCLAIMER This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Skipper makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This Information includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to investment in the Company. This presentation may contain statements that are not historical facts, referred to as "forward looking statements." The corporation's actual future results may differ materially from those suggested by such statements, depending on various factors including statements contained in the Company's filings with the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any written or oral forward-looking statements that may be made from time to time by or on behalf of the Company For any queries please contact: Aditya Dujari (Investor Relations) Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017 E-Mail: [email protected] Tel: +91 33 2289 2327/5731 Mobile: 9830806906 50