Slide 1: Exchange filing cover letter
30th October 2023 Electronic Filing National Stock Exchange of India Limited Department of Corporate Services/Listing “Exchange Plaza” Bandra-Kurla Complex, BSE Limited Bandra (E), Phiroze Jeejeebhoy Tower, Mumbai-400051 Dalal Street, Fort, Mumbai-400001 NSE Symbol : APLAPOLLO Scrip Code : 533758 De
Slide 2: Q2FY24 Earnings Presentation
Q2FY24 Earnings Presentation 1
Slide 3: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Contents
Contents • Q2FY24 at glance • Financial Performance • Business Strategy • New Initiatives • ESG Engagement APL APOLLO TUBES • Team APL Apollo 3
Slide 5: Q2FY24 at a Glance
Q2FY24 at a Glance 675k Ton ₹ 46.3 Bn ₹3.3Bn ₹ 4,817 Sales Volume Revenue EBITDA EBITDA/ton 12% yoy increase 17% yoy increase 40% yoy increase 25% yoy increase 55% ₹266 Mn ₹ 2.0Bn ₹ 2.4Bn Value Added Sales mix Interest Cost Net profit Cash profit Q2FY23 was 54% 96% yoy increase 35% yoy increase 37%
Slide 6: Highest ever Quarterly Sales Volume/EBITDA/Net Profit
Highest ever Quarterly Sales Volume/EBITDA/ Net Profit Profit & Loss (Rs Mn) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Sales Volume (k Ton) 373 427 403 552 423 602 605 650 662 675 Revenue 25,343 30,839 32,304 42,147 34,386 39,692 43,271 44,311 45,449 46,304 EBITDA 2,547 2
Slide 7: Financial Performance
FINANCIAL PERFORMANCE APL APOLLO TUBES 6
Slide 8: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Sales Sales Sales Application Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton Vol. EBITDA/Ton Mix Mix Mix (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) (%) (K Ton) (Rs) Hea
Slide 9: De-commoditizing Product Portfolio
De-commoditizing Product Portfolio Existing Proposed FY20 FY21 FY22 FY23 H1FY24 capacity Capacity Product Sales Sales Sales Sales Application Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Vol. EBITDA/Ton Sales Mix Vol. EBITDA/Ton (KTon) (KTon) Category Mix Mix Mix Mix (%) (KTon) (Rs) (%) (KTon) (R
Slide 10: Diversified product offering created through continuous innovation
Diversified product offering created through continuous innovation Product Category Application Product – visual Key USPs Applications Applications – visual overview overview • First company to introduce DFT High-rise, Warehousing, Infrastructure technology in India Heavy • Offers columns of 300mm x
Slide 11: Global Peer Benchmarking
Global Peer Benchmarking 162 19% 17% 14% APL Apollo 185 106 6% SSAB 68 Maruichi Zekelman SSAB Maruichi Zekelman APL Apollo Revenue (Rs Bn) EBIDTA Margin (%) 3.6 APL APOLLO TUBES 2.8 60% 60% 80% 1.4 97% 1.1 SSAB Maruichi Zekelman APL Apollo SSAB Maruichi Zekelman APL Apollo Manufacturing Capacity (mn
Slide 12: Growing Strength to Strength
Growing Strength to Strength Volume (k'ton) EBITDA (Rs Mn) 675 3,229 3,250 662 3,072 650 2,729 2,319 602 605 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 EBITDA/Ton (Rs) Net Profit (Rs Mn) APL APOLLO TUBES 4,970 4,817 4,510 4,645 2,018 2,029 1,936 3,850 1,692 1,502 Q2FY23 Q3
Slide 13: Growing Strength to Strength
Growing Strength to Strength ROE (%) ROCE (%) 28.9 34.6 32.4 24.8 25.2 29.2 23.5 26.5 21.2 18.4 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Interest Coverage Ratio (x) Net Working Capital Days APL APOLLO TUBES 29 19.7 13.9 11.0 9.3 9 7 3.8 5 5 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23
Slide 14: Growing Strength to Strength
Growing Strength to Strength Operating Cash Flow (Rs Bn) 1.7 Net Debt/EBITDA (x) 9.8 9.7 6.5 5.1 4.8 0.2 0.2 0.2 0.2 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 Net Debt/ Equity (x) Net Debt (Rs Bn) APL APOLLO TUBES 0.6 7.9 2.0 2.4 2.2 0.1 0.1 0.1 1.6 0.1 FY20 FY21 FY22 FY23 H1FY24 FY20 FY
Slide 15: Growing Strength to Strength
Growing Strength to Strength Operating Cashflow to EBITDA (%) Capex to Op. Cash flow 144 90 87 74 107 95 59 69 76 29 FY20 FY21 FY22 FY23 H1FY24 FY20 FY21 FY22 FY23 H1FY24 FCF (Rs Bn) APL APOLLO TUBES Du-Pont ROE (%) 5 30 6.1 4 25 3 20 2 1.4 1 15 0 10 -0.4 FY19 FY20 FY21 FY22 FY23 H1FY24 -0.6 0.4 Net
Slide 16: Profit & Loss Statement (Consol)
Profit & Loss Statement (Consol) Particulars (Rs Mn) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 FY23 H1FY24 Sales Volume (K Ton) 602 605 650 662 675 2,280 1,336 Net Revenue 39,692 43,271 44,311 45,449 46,304 1,61,660 91,753 Raw Material Costs 34,747 37,693 37,823 39,207 39,784 1,40,178 78,991 Employee Costs
Slide 17: Balance Sheet & Cash flow (Consol)
Balance Sheet & Cash flow(Consol) Balance Sheet - Assets (Rs mn) H1FY24 FY23 Cashflow Statement (Rs mn) H1FY24 FY23 Cash & Bank Balance 9,340 6,295 EBITDA 6,322 10,215 Receivables 1,445 1,374 Change in receivables -65 1,990 Inventories 13,633 14,799 Change in inventory 1158 -6340 Other current asset
Slide 18: Consol. Cash Flow Bridge (Rs Mn.)
Consol. Cash Flow Bridge (Rs Mn.) 3,000 2,000 1,000 4,803 -3,564 (Rs Mn) 0 -1,000 600 -2,213 -2,434 -1,618 -2,000 APL APOLLO TUBES -3,000 Net debt in FY23 Op Cash flow Capex Investments Dividend & others Net debt in H1FY24 Business continues to Capex being funded from Net debt to EBITDA at 0.2x gene
Slide 19: Business Strategy
Capex Plan for Distribution value addition Enhancement BUSINESS STRATEGY APL APOLLO TUBES Market Creation Innovation 18
Slide 20: APL Apollo Vision
APL Apollo Vision MARKET CREATION INNOVATION ESG • Solid new product + • Replacement of + • Introducing environmentally conventional construction products friendly products pipeline • Wood • To reduce the emissions by • Complete product • Angles/Channels 25% by 2030 portfolio for steel • RCC • Worki
Slide 21: Innovation: world's only company with 8x8mm to 1000x1000mm tubes
INNOVATION World’s only company to make steel tubes with size range of 8x8mm to 1000x1000mm and thickness range of 0.18 mm to 40mm APL APOLLO TUBES 20
Slide 22: What we have done so far as the first company: Indian Markets
What we have done so far as the first company Indian Markets Structural steel square and Structural application in rectangular tubes: construction Industry Pre-galvanized structural Corrosive resistant structural steel tubes (Apollo Z): applications DFT (Direct Forming Faster TAT with tailor made si
Slide 23: What we have done so far as the first company: Global Markets
What we have done so far as the first company Global Markets Chaukhat (Door frame Replacing Conventional shape tubes) wooden door frames Rectangular section of 1:11 Replacing Conventional (Length to Breadth) wooden sections APL APOLLO TUBES 22
Slide 24: Registered patented products
AAAS Handrail Window Frame Window Frame Tube (L) Tube (1) REGISTERED PATENTS PRODUCTS Window Frame Reflector Tube Oval Tube Tube (Z) n FJ Double Door Apollo Signature Four door =} Frame Frame =f fe} Plank Tube Octagon Fencing Tube re} < = < Single Door Elliptical Tube D Section Frame Checkered Sheet
Slide 25: New Product Pipeline from Raipur plant
New Product Pipeline from Raipur plant Superior corrosion resistant, World’s 1st thicker high load bearing with color coated products aesthetics World’s 1st Color coated Superior corrosion resistant structural steel tubes with aesthetics India’s 1st 500x500mm dia structural steel tubes Replacing RCC
Slide 26: Market Creation
MARKET CREATION APL APOLLO TUBES 25
Slide 27: Structural Steel Tube Applications
Structural Steel Tube Applications Application Mix Commercial Buildings 25% Housing 50% APL APOLLO TUBES Infrastructure 20% Others 5% *As per H1FY24 revenue 26
Slide 28: How Have We Created Market..
How Have We Created Market.. Conventional Construction Why Structural Steel Tube replaces How to replace the conventional Applications Products these products? products?? Structural support, Towers Uniform Strength, Steel Angle/Channels infrastructure Lower steel consumption Low Diameter Cost Effect
Slide 29: Revolutionizing Construction Industry
REVOLUTIONIZING CONSTRUCTION INDUSTRY APL APOLLO TUBES 28
Slide 30: Tubular Construction Process flow
Tubular Construction Process flow Tube Manufacturing Fabrication Civil Foundation Hospital Building Production of 6,000 ton ERW Tubes are sand blasted, Civil Foundation & Arrangement Hospital tubes per day at plants of APL then connected using of anchor bolts at site to install Apollo connectors tub
Slide 31: Delhi Hospitals: Proof of Concept
APL APOLLO TUBES 6 DELHI HOSPITALS: PROOF OF CONCEPT + Total 2mn Sq.ft built-up + 18k ton Steel Tubes used + Structural work completed in average 20days Geeta Colony «—t Sultanpuri Shalimar Bagh ii GTB Hospital Sarita Vihar. e—> iq i fe f fo. , ‘ Raghuvir Nagar >
Slide 32: More live sites
More live sites MES – Delhi Cantonment University Campus- Telangana APL APOLLO TUBES Railway Station – Andhra Hospital- Mumbai Water Tank, Uttar Pradesh Pradesh 31 University, Delhi NCR Housing-Delhi
Slide 33: Applications
Applications ● High Rise Buildings ○ Hospitals, Housing, Schools, Courts, Hotels/Malls/Offices 45 42mn sq. ft. 220,000 ton heavy structural steel ● Warehouses/Cold Storage/Food Parks projects Visibility tubes ● Factory Buildings/Process Structures ● Aviation Hangers Ongoing enquiries ● Data Centres
Slide 34: Vision 2025
Vision 2025 ✓ Capacity: 5 Mn Tons 1 Dominant position with 60%+ market share Company aims to continue its dominant position in Indian Market with Capacity Utilization of 80%+ 2 Product innovation Create formidable position in newer product category (Super Heavy and Coated) ✓ Revenue 2X 3 Strengthen
Slide 35: Growth Drivers
Growth Drivers Focus on high margin A Capacity expansion B New products C products D Geographic expansion East India Raipur project Products Capacity: 0.2 MTPA Project to help deeper • Capacity: 1.2 MTPA Project specifically focused at High- value added products 3 penetration in the Eastern India (i
Slide 36: APL Apollo's ESG Transformation Journey
APL Apollo’s ESG Transformation Journey 35
Slide 37: DJSI Scoring
DJSI Scoring APL APOLLO SCORED 80TH PERCENTILE IN FY22 We expect better score APL APOLLO TUBES this year as we are improving on ESG parameters 36
Slide 38: Commitment and achievements
Commitment and achievements Commitments Achievements ▪ Committed to reducing Scope 1&2 emissions by 25% by 2030 E ▪ Introduced new, environmentally friendly products E ▪ Committed to set near term and Net Zero targets by 2050 E ▪ All plants have access to green energy, 2 plants have more than 85% de
Slide 39: Front runner for Steel for Green
Front runner for Steel for Green ▪ APL Apollo is the 1st Company to innovate readymade Doorframe, Fence, Plank and Hand rails as Steel for Green Concept which replaced conventional wood application in building construction ▪ Our Products are saving 250,000 trees every year, going ahead we will be sa
Slide 40: Steel Buildings = Decarbonization
Steel Buildings = Decarbonization ● Construction sector contributes 30% of direct and indirect Co2 emissions Steel Structure - RCC Structure ● Structural steel is preferred for steel buildings because steel is ○ Infinitely recyclable ○ Easy to pre-fabricate ○ High volume to weight ratio APL APOLLO T
Slide 41: Financial Priorities under Strong Governance
Financial Priorities under Strong Governance Growth Earnings Drive sustainable EPS growth Profitable Organic Growth Attain earnings objectives across Commitment to R&D and Talent economic cycles Innovate products to replace conventional construction methods APL APOLLO TUBES Capital Allocation Drive
Slide 42: Board of Directors
Board of Directors Sanjay Gupta Deepak Goyal Group CFO CMD & Director-Operations Steel Industry veteran with 3 decades 2 decades of professional ofexperience experience in steel tube industry Neeru Abrol Ashok Kumar Gupta Director at TCNS Clothing Co Steel industry veteran with 4 Limited & others|Aw
Slide 43: Our Leadership
Our Leadership Vinay Gupta Rahul Gupta Deepak Goyal Anubhav Gupta Chairman JMD Group CFO Group Chief Strategy Apollo Metalex Apollo Building Products & Director-Operations Officer Sanjay Gupta (New Raipur) CMD APL APOLLO TUBES Anurag Mehrotra Ravindra Tiwari Utkarsh Dwivedi Amit Thakur Chief Human R
Slide 44: Thank You
Thank You For further information, please contact: Anubhav Gupta Deepak Goyal APL Apollo Tubes Ltd APL Apollo Tubes Ltd Tel: +91 120 404 1452 Tel: +91 120 404 1400 Email: anubhav@aplapollo.com Email: deepakgoyal@aplapollo.com APL APOLLO TUBES Shubham Mittal APL Apollo Tubes Ltd Tel: +91 120 404 1453
Slide 45: Press release: Q2FY24 Financial Performance
APL Apollo Tubes Limited Regd. Office: 37, Hargobind Enclave, Vikas Marg, Delhi – 110 092 Corp. Office: 36, Kaushambi, Behind Wave Cinemas, Ghaziabad – 201010 Q2FY24 FINANCIAL PERFORMANCE Sales volume of 6,74,761 tons, +12% YoY EBITDA of Rs3.3bn, +40% YoY Net Profit of Rs2.0bn, +35% YoY Ghaziabad, O
Slide 46: Chairman's comments on Q2FY24 results
Mr. Sanjay Gupta, Chairman, APL Apollo, comments in Q2FY24 results “The Company reported highest ever quarterly sales volume, EBITDA and PAT in Q2FY24. This was supported by our continuous focus on adding value added products (VAP) in our portfolio. The VAP contributed 55% to our overall sales volum