Skipper Ltd · NSE:SKIPPER

Skipper — Q2 FY2022 Earnings Presentation

36 slides from Skipper's earnings presentation, Nov 9, 2021

  1. Slide 1: Cover letter to stock exchanges

    9rcPPER Limited Date: 9 November 2021 The Manager The Manager National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Dalal Street Plot No. C-L, Block-G Mumbai- 400 001 Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Name- SKIPPER/BSE Scr

  2. Slide 2: Q2 & H1 FY'22 Results Investor Presentation

    Q2 PERFORMANCE, 2021 - 22 SKIPPER LIMITED INVESTOR PRESENTATION Q2 & H1 FY’22 Results 9th November, 2021

  3. Slide 3: Disclaimer

    DISCLAIMER 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

  4. Slide 4: Who We Are

    WHO WE ARE Company is India’s largest and world's only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC. 3

  5. Slide 5: Skipper: One-Stop Solution Provider

    PRODUCT OFFERINGS SKIPPER: ONE -STOP SOLUTION PROVIDER Engineering products Polymer products Infrastructure projects Capacity: 300,000 MTPA Capacity: 51,000 MTPA M I S S•I Transmission ON Line EPC • Power Transmission Tower • UPVC Pipes • Railway Electrification EPC • Power Distribution Poles • CPVC

  6. Slide 6: Q2 FY'22 Performance Update

    SKIPPER LIMITED Performance Update Q2 FY’22 Update

  7. Slide 7: Q2 FY'22 Key Performance Highlights

    B U S I N E S S U P D AT E Performance Update Q2 Fy’22 – Key Performance Highlights  Strong revenue performance across major business segments in spite of covid related challenges.  Health and safety of employees and partners remains key focus area for the company ; Almost 100% employees in corpor

  8. Slide 8: Financial Performance Q2 & H1 FY'22

    BUSINESS REPORT CARD Financial Performance Q2& H1 FY’22 Rs in Mn Sl Profit & Loss Summary Q2 FY’22 Q2 FY’21 H1 FY’22 H1 FY’21 1 Revenues 4,792.9 4,036.0 7,539.3 6,243.1 2 Reported EBITDA 419.4 477.6 586.4 568.1 EBITDA Margins (%) 8.8% 11.8% 7.8% 9.1% 3 (+) Other Income 10.0 3.8 18.9 6.8 4 (-) Deprec

  9. Slide 9: Revenue Performance Highlights Q2 FY'22

    REVENUE PEFRORMACE HIGHLIGHTS – Q2 Fy’22 Rs in Mn Rs in Mn Stand Alone - Revenue Segment - Revenue 4,793 4,036 19% + 24 % 3,944 3,185 + 77 % - 81 % 772 436 415 77 Q2 FY '22 Q2 FY'21 Engg Polymer Infra Q2 Fy'22 Q2 FY'21 • Revenue up by 19 % YoY despite operational constraints in the wake of COVID-19

  10. Slide 10: Profitability Performance Highlights

    PEFRORMACE HIGHLIGHTS Q2 Fy’22 Profitability Margin was impacted on account of -  Unprecedented commodity price rally in our key raw material (i.e Steel & Zinc) - had its impact on fixed price contracts;  Increase in prices of other RM inputs like Fuel / Coal also impacted overall contracts in gen

  11. Slide 11: Segment Performance Q2 & H1 FY'22

    SEGMENT REPORT Segment Performance Q2 & H1 FY’22 Infra Segment Profit & Loss Summary Q2 FY'22 Q2 FY'21 Change % H1 FY'22 H1 FY'21 Change % Polymer 2% Net Sales 3,943.8 3,184.6 23.8% 5,991.3 4,777.1 25.4% Engg 16% EBITDA - Operating 413.1 290.9 42.0% 524.7 379.7 38.2% Products % of Sales 10.5% 9.1% 8

  12. Slide 12: Debt Management

    Debt Management Debt Details Rs in Million 30.09.2021 31.03.2021 Inc / (Dec) Long Term Debt 2,059 2,563 (504) Current Maturities of Long 648 586 62 Term Debt Total Long Term Debt 2,707 3,149 (442) Short Term Debt 3,576 1,236 2,340 Gross Debt Level 6,283 4,385 1,898  Unavailability of Export Contain

  13. Slide 13: Mitigation Strategy

    Ma na gi ng RM P ri c e Vo l ati l i ty The company is taking all necessary steps to tackle & neutralise the impact of this temporary RM volatility / Container Freight issues and protect margins - Securing Newer Contracts at elevated commodity price level Mitigation Strategy Considering lack of cont

  14. Slide 14: The Invisible Positives in the Decline

    LOGICAL REASONING THE INVISIBLE POSITIVES IN THE DECLINE 1 Skipper reported consecutive q-o-q growth in order book inflow; Secured orders in 2 Skipper continued to increase its non- India exposure; received first time order and enquiry 3 Only polymer pipe company to successfully implement Theory of

  15. Slide 15: Engineering Products Order Book Composition

    ORDER BOOK PIE Engineering Products – Order Book Composition – Sep 2021 Total Order Book T&D Order Book Rs 21,220 million Rs 20,060 million Railways Telecom 2% 4% 40% 41% T&D Breakup T&D 94% 19% T&D Telecom Railways Domestic – 61% Export – 39% PGCIL SEB & Others Export 14

  16. Slide 16: Rising Order Inflow

    Rising Order Inflow Engineering Products – Order Inflow Composition • New Order Intake of Rs 5,010 million in Q2 FY’22 & Rs 9,540 million in H1 Fy’22 for engineering products supply from PGCIL, SEB’s & Telecom Players and for various supplies across Asia Pacific , Africa and LATAM markets • T&D Orde

  17. Slide 17: Rising Export Share Inflow

    ORDER BOOK PIE Rising Export Share Inflow Export Order Inflow Trend Positioned to grow export business to 75% of Engineering revenue in next 2 years  Secured new export orders in excess of Rs 3,880 million Surpassed last year total inflow by over during H1 Fy’22 and Rs 6,030 million in the trailing

  18. Slide 18: Strong Bidding Pipeline

    Strong Bidding Pipeline Strong Bidding Pipeline of 48,000 Million as on 30th Sep 2021; International – 35,000 Mn & Domestic - 18,000 Mn • Expecting International Ordering & Execution to gain pace in H2 FY’22; • In advanced Stages of negotiation to secure some good size International contract • Large

  19. Slide 19: Business Outlook: Big Opportunity USA

    Business Outlook With Major Approvals in place and strong relationship been developed with Major USA EPC players and Utilities over the past few years, Company is well poised to target and get benefitted from this massive Power T&D investment plans. Big Opportunity – USA With bipartisan support, the

  20. Slide 20: Key Highlights COP26 Climate Change Meet

    Key Highlights -COP26 Climate Change Meet (Nov’21) One Sun One World One Grid Project (OSOWOG) • India and Britain signed a solar power initiative, called One Sun One World One Grid, that envisions an interconnected transnational solar grid. • OSOWOG is India's initiative to build a global ecosystem

  21. Slide 21: Skipper's Polymer Business

    P O LY M E R P R O D U C T S S E G M E N T SKIPPER’S POLYMER BUSINESS Polymer Plants invested Guwahati Fittings Among few Indian One of few Indian manufacturing state-of-the-art Plant enjoys tax companies assured companies with capacity of 51,000 manufacturing exemption of CPVC for pipes NSF certifi

  22. Slide 22: Polymer Highlights

    Polymer Highlights Polymer – Improving Revenue Performance Major Highlights TTM Revenue of Rs 2,693 million  Only Polymer Pipe company in India to implement TOC into its operation Highest Ever Q2 Revenue Performance  Growing National Presence ;  Deriving 75% of overall revenue through TOC channel

  23. Slide 23: Our USP: Theory of Constraints

    THEORY OF CONSTRAINTS OUR USP • Partnering benefits: • Exponential Sales Growth & Gain in Market Share Skipper is the only Indian polymer pipe company to • Robust Processes & Systems in place to improve implement Theory of profitability Constraints (TOC) approach in an organized • Consistent availab

  24. Slide 24: New Polymer Product Addition

    New Polymer Product Addition Performance Update Awards & Approvals PTMT BATH ACCESSORIES CISTERN & SEAT COVER 23

  25. Slide 25: New Polymer Product Addition: Awards & Approvals

    New Polymer Product Addition Performance Update Awards & Approvals 24

  26. Slide 26: Performance Outlook

    Business Outlook PERFORMANCE OUTLOOK  Almost 80% of our old legacy engineering export orders secured on CIF basis have got executed in H1 Fy’21 ; Going forth most of the revenue execution will take place from newer contracts which were secured on FOB terms aiding to better margin performance  Stro

  27. Slide 27: FY'22 Guidance

    Business Guidance FY’22 - Guidance  Revenue Guidance - Company expects to clock double digit annual revenue growth in FY’22 on back of strong pending execution of engineering contracts and strong polymer segment performance  Order Inflow – Targeting Inflow of Rs 18,000 - 20,000 million in full yea

  28. Slide 28: Shareholding Pattern

    Shareholding Pattern Shareholding pattern Major Institutional Shareholders a s o n 3 0 th S e p 2 1 A s o n 3 0 th S e p 2 1 Name % Promoters Baillie Gifford - Pacific Horizon Investment 4.49% 71.89% Trust Ocean Dial Asset Management India (ICGF) 4.08% Foreign Portfliio Univeral Golden Fund 0.54% In

  29. Slide 29: Future Ready

    SKIPPER 0 © GK Le SKIPPER } =] ok R&D Future Ready

  30. Slide 30: Focus on Growing Exports

    EXPLORING NEW GEOGRAPHIES FOCUS ON GROWING EXPORTS • Optimistic outlook: Positioned to grow exports to 50% of Engineering revenue in current year (FY’22) and to 75 % in next International certifications 2 years. Certification Country • Opportunity-ready: Certified by prominent international CFE/LAPE

  31. Slide 31: Leadership Position in International T&D Sector

    LEADERSHIP POSITION S K I P P E R I S C L E A R LY P O I S E D T O B E I N T H E W I N N I N G S P O T I N T H E I N T E R N AT I O N A L T & D S E C T O R • Skipper is the highest accredited manufacturers in India for supplying to global markets • Largest and lowest cost manufacturer out of India a

  32. Slide 32: Telecom Sector: Telecom Tower

    TELECOM SECTOR TELECOM TOWER • India needs around 100,000 additional towers to address growth China 1.4 bn 1.94 mn • National Telecom Policy aims to inspire $100 bn investment in Customers Telecom tower five years • India’s 30 per cent broadband penetration leaves large headroom • Sector added 65,00

  33. Slide 33: Leadership Position in the Telecom Sector

    LEADERSHIP POSITION S K I P P E R I S C L E A R LY S E T T O B E I N T H E W I N N I N G S P O T 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

  34. Slide 34: Transmission Line Tower Testing Station

    T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n Skipper boasts of India ‘s largest Tower & Monopole Load Testing Station - • All new large T&D projects in domestic markets now comes along with Design and Load testing scope; • Our new R&D centre will give us distinct advantage ove

  35. Slide 35: Skipper Vaccination Drive

    S K I P P E R VA C C I N AT I O N D R I V E More than 2,200 + Employees and Workers were Vaccinated 34

  36. Slide 36: Contact details

    For any queries please contact: Aditya Dujari (Investor Relations) Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017 E-Mail: aditya.dujari@skipperlimited.com Tel: + 91 33 2289 2327/5731 Mobile: 9830806906 35

Skipper — Q2 FY2022 Earnings Presentation on 6ix