Banswara Syntex Ltd · NSE:BANSWRAS

Banswara Syntex — FY2016 Earnings Presentation

38 slides from Banswara Syntex's earnings presentation, May 2016

1. Slide 1: Investor Presentation – May 2016

   BANSWARA SYNTEX LIMITED Investor Presentation – May 2016

2. Slide 2: Safe Harbour

   Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Banswara Syntex Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu

3. Slide 3: FY16 Result Highlights

   -BANSWARA By Zz \ 2) Y co 29 ra = = > =) Wn 3) a Ne) A > LL a

4. Slide 4: Consistent Superior Quarterly Performance - Consolidated

   Consistent Superior Quaterly Performance - Consolidated Total Operating Income Rs crs EBIDTA Rs crs +13% +70% 350.4 47.6 309.2 325.4 301.8 292.7 40.7 39.7 35.3 28.0 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 PBT Rs crs PAT Rs crs 18.3 12.0 13.9 8.3 8.7 5.4 3.0 1.5 -2.4 -1.

5. Slide 5: Q4 FY16 Results Highlights

   Q4 FY16 Results Highlights  Revenue growth of 13.3% to Rs.350 crores  Pass on of lower commodity prices leding to lower realisation & revenue growth  Improvements in Gross Margins is due to higher weightage of Garmenting & Fabric in the product mix  EBITDA grew by 69.9% to Rs. 47.6 crores  EBIT

6. Slide 6: Consolidated Q4 & FY16 P&L Highlights

   Consolidated Q4 & FY16 P&L Highlights Rs Crs Q4 FY16 Q4 FY15 Y-o-Y FY16 FY15 Y-o-Y Total Operating Income 350.4 309.2 13.3% 1,270.2 1,230.6 3.2% Raw materials 181.4 161.9 615.7 617.2 Employee Exp 49.1 47.4 199.0 183.5 Other Expenses 72.2 71.9 292.2 288.9 EBIDTA 47.6 28.0 69.9% 163.4 140.9 15.9% Marg

7. Slide 7: Improving Business Parameters

   Improving Business Parameters Net Debt Rs. crs Net Debt:Equity -50 -77 666 617 3.1 2.8 540 2.2 Mar-14 Mar-15 Mar-16 Mar-14 Mar-15 Mar-16 ROE ROCE 12% 11% 23% 22% 18% 4% Mar-14 Mar-15 Mar-16 Mar-14 Mar-15 Mar-16 Net Debt includes Current Maturity of Debt 7

8. Slide 8: About Banswara Syntex Ltd

   -BANSWARA By Zz \ zg | x< 0) YY c > Y © — © S n Cc ig) aa) p=) =) ie) 2 <x a

9. Slide 9: Business Snapshot

   Business Snapshot Vertically Integrated Textile Revenue Growth Solutions Company 10% CAGR over last 5 years Reputed Production Domestic and Facilities at International Exports to more Daman, Clients than 60 countries Surat & Banswara In-House R&D J.V. with “Treves SA” of France for Design Studio Aut

10. Slide 10: Vertically Integrated Textile Solutions Company

    Vertically Integrated Textile Solutions Company Yarn  Produces blends of viscose staple fibre, polyester Yarn staple fibre, acrylic staple fibre, lycra, cotton, linen and wool Retail Brand  Production Capacity – 35,460 tons pa o 33,300 tons - polyester blended dyed yarns o 2,160 tons - wool mix ya

11. Slide 11: Evolution – Complete Textile Vertical

    Evolution – Complete Textile Vertical • Incorporated as • Started • Started first unit • 2nd unit of 15 MW • Bought the a Joint Sector production of of 18 MW captive thermal power plant complete stake Co. with RIICO Readymade thermal power • Started wool & wool in Carreman JV Ltd. Garments plant mix

12. Slide 12: Leadership Team

    Leadership Team 2 4 1 3 1 Mr. R L Toshniwal – Chairman 2 Mr Rakesh Mehra – Vice Chairman  Masters degree in Textiles from Leeds University, UK  Chartered Accountant from ICAI  52 years experience in Textile Industry  29 years experience in Textile Industry  On the board of four other companies

13. Slide 13: Board of Directors

    Board of Directors Mr. R. L Toshniwal Mr. Rakesh Mehra Chairman Vice-Chairman Mr. Ravindra Kumar Toshniwal Mr. Shaleen Toshniwal Managing Director Joint Managing Director Mr. Parduman Kumar Mr. D P Garg Dr. S B Agarwal Independent Director Independent Director Independent Director Mr. Vijay Kumar Ag

14. Slide 14: Business Overview

    -BANSWARA By Zz \ = wv 5 — 7) > Oo Yn Yn A c x77) = a) a 14

15. Slide 15: Business Model (Process)

    Business Model (Process) Spinning Weaving & Processing Garmenting Polyviscose, Worsted Fabric, Garments / Made-Ups Cotton Fabric & Technical (Trousers, Jackets & Fabric Waist Coats) Polyviscose & Processing & Worsted Finishing into Spinning Fabric Spun Yarn for Fabric for Internal Use Internal Use E

16. Slide 16: Yarn

    Yarn  One of the largest single-mill setups producing spun fibre-dyed yarns in Asia  Specialties include :  P/V Dyed Yarn - Rigid and Lycra, 100% Acrylic Yarn, Worsted Yarn with blends like P/W and P/W/Lycra  Specialty Yarn - Grindle and Slub in Dyed form  90% of production consists of fibre-dy

17. Slide 17: Fabric

    Fabric  Hi-Quality Hi-Performance Textile wear finished fabric Poly Viscose Worsted Fabric for both Domestic and Exports Fabric  Leadership in Poly Viscose and Poly Viscose Lycra for Suiting  Presence Across: Worsted, Wool Specialties, Viscose, Poly Viscose, Poly Viscose Lycra, Cotton Suiting and

18. Slide 18: Readymade Garments

    Readymade Garments  Specialties:  Formal Trousers – Water Repellent and Stain Release  Suits – In depth know-how in Lined and Unlined 3-Piece Suiting  Casuals - Enzyme Washed/Bleached Casual Bottoms & Jackets  Garmenting units – Daman and Surat SEZ  Installed capacity for 3.45 lakh Trousers &

19. Slide 19: Domestic Clientele

    Domestic Clientele E-Commerce Clients: 19

20. Slide 20: International Clientele

    International Clientele Increasing presence in Garmenting Space 20

21. Slide 21: Global Presence

    Global Presence USA & Geographical Export Canada France & Russia break up FY15 UK Others Greece UAE 8% Gulf Mexico India 14% America 30% Europe 49% Exports to more than 60 countries 21

22. Slide 22: Manufacturing Capability

     Manufacturing Capability 22

23. Slide 23: Manufacturing Facilities

    Manufacturing Facilities Surat SEZ Unit Thermal Power Plant Daman Facility Banswara Facility Invested over Rs. 14 crores towards expansion and modernization of Surat SEZ over 5 years 23

24. Slide 24: Manufacturing Capabilities

    Manufacturing Capabilities Spinning Unit Weaving Unit Dyeing Unit Garmenting Unit Invested over Rs. 426 crores towards expansion and modernisation between FY10 -15 • Garmenting Rs.38 Crs • Spinning Rs.209 Crs • Power Unit Rs.47Crs • Fabric Rs.132 Crs 24

25. Slide 25: Spinning and Yarn

    Spinning and Yarn Synthetic Blended Yarn Spinning Worsted Yarn (Spindles) 130,552 130,552 130,552 130,552 21,120 21,120 21,120 21,120 14,400 129,016 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Fiber & Wool Dyeing (MT/month) Yarn Dyeing 1,050 1,050 150 150 150 150 150 840 840 840 25 FY12 FY13 F

26. Slide 26: Fabric Weaving and Processing

    Fabric Weaving and Processing Sales in Lac Mtrs/Year Commodity Fabric Capacity in Lac Mtrs/Year 167 163 Revenue in Rs Crores 151 154 Fabric Weaving Fabric Weaving 95 360 360 +6% CAGR 336 312 288 532 513 488 470 403 FY11 FY12 FY13 FY14 FY15 Value Added Fabric 164 160 157 155 FY11 FY12 FY13 FY14 FY15

27. Slide 27: Garmenting

    Garmenting Capacity in ‘000 pcs/month Trousers & Suitings Garmenting Sales (Rs Crores) 345 345 345 345 285 +15% CAGR 212 200 189 136 FY12 FY13 FY14 FY15 FY16 114 Jackets 37.5 37.5 30.0 30.0 22.5 FY12 FY13 FY14 FY15 FY16 27 FY12 FY13 FY14 FY15 FY16

28. Slide 28: In-House Research & Development

    In-House Research & Development  World class fabric testing laboratory as per ISO, AATCC, ASTM, LS & Co., M & S etc. testing protocol  Achieved accreditation of Levis & Co., Marks & Spencer and undergoing ISO 17025 NABL accreditation  Computer software for developing new designs for manufacturing

29. Slide 29: Awards and Achievements

    Awards and Achievements  First laboratory in the country to be approved by Marks & Spencer, UK and Levis Strauss & co., USA  Golden trophy for BEST EXPORTER of "Synthetic and Rayon Spun Fabric Silver Trophy for SECOND BEST Exporter  Accredited partner for Semi-Luxury bag brand “Coach” for three y

30. Slide 30: Business Strategy

    -BANSWARA By Zz \ > {oY} 0) Y © a Y Y Yn Yn oO < n =) aa) a 30

31. Slide 31: Business Initiatives…

    Business Initiatives… Major Capex Completed Production of worsted fabric below Established Own Design Studio optimum and Marketing Network in Europe levels Time taken Discontinued Consolidating Product Portfolio to increase logo business in Fabrics share of for Coach Suites and impacting Jackets Las

32. Slide 32: …creating Future Drivers

    …creating Future Drivers Increasing market Hired designers from Penetrating retail presence for Europe and USA branded segment Worsted fabric increasing store count Increasing utilization of New In- House fabric and design studio in stabilizing Paris garmenting unit Going Incremental growth from For

33. Slide 33: Detailed Financial Performance

     Detailed Financial Performance 33

34. Slide 34: Standalone Q4 & FY16 P&L Highlights

    Standalone Q4 & FY16 P&L Highlights Rs Crs Q4 FY16 Q4 FY15 Y-o-Y FY16 FY15 Y-o-Y Total Operating Income 348.4 305.5 14.1% 1264.7 1226.2 3.1% Raw materials 180.1 159.3 611.6 614.8 Employee Exp 48.3 46.6 195.7 180.6 Other Expenses 73.5 72.3 296.9 293.2 EBIDTA 46.5 27.2 70.9% 160.4 137.7 16.5% Margin %

35. Slide 35: Standalone Operating Performance

    Standalone Operating Performance FY16 Revenue highlights Revenue Rs crs  Lower realisation on account of pass +8% CAGR on of correction in raw material prices 1,226 1,265  Entry into Japenes market –Strong 1,212 1,096 future potential 924  Leveraging manufacturing capacity in Jacquard Fabric for

36. Slide 36: Standalone Revenue Performance

    Standalone Revenue Performance Segment Gross Revenue Rs crs Geographic Gross Revenue Rs crs 1,271 1,271 1,231 1,236 1,231 1,236 1,130 1,130 967 473 520 967 514 470 51% 54% 47% 57% 417 45% 532 470 513 488 403 53% 49% 46% 55% 43% 189 212 200 114 136 33 36 37 40 38 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY

37. Slide 37: Consolidated Balance Sheet

    Consolidated Balance Sheet Rs. Cr. Mar 16 Mar 15 Rs. Cr. Mar 16 Mar 15 EQUITY AND LIABILITIES ASSETS Shareholders Funds 248.3 222.5 Non-Current Assets 509.7 536.6 Share Capital 16.9 16.4 Fixed Assets 492.8 526.1 Reserve & Surplus 231.3 205.6 Non current investment 1.0 0.9 Money received against shar

38. Slide 38: For further information, please contact:

    For further information, please contact: Company : Investor Relations Advisors : Banswara Syntex Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L24302RJ1976PLC001684 CIN: U74140MH2010PTC204285 Mr. J.K.Jain - CFO Ms. Ruchi Rudra / Ms. Dikshita Jain jkjain@banswarasyntex.com rruchi@sgapl.net / jdikshit

Banswara Syntex — FY2016 Earnings Presentation on 6ix