Premier Explosives Limited · NSE:PREMEXPLN

Premier Explosives — Investor Presentation (August 2016)

30 slides from Premier Explosives's investor presentation, August 2016

1. Slide 1: Investor Presentation August 2016

   INVESTOR PRESENTATION AUGUST 2016

2. Slide 2: Overview: Who we are, Mission and Vision

   OVERVIEW Who we are A leading manufacturer of high energy materials for Mission industrial and defence applications Become a global player in quality formulations of high energy materials in a safe, green and economical way through an employee Our facilities empowered organization Six manufacturing

3. Slide 3: Overview: Industry firsts

   OVERVIEW 1st Company in India to have deployed indigenous technology for manufacturing explosives and detonating fuels 1st Company in the world to produce safer and greener NHN detonators on commercial scale replacing ASA detonators 1st Indian private entity manufacturing and supplying solid propell

4. Slide 4: Timeline

   TIMELINE Appreciation for Mr. A N Gupta MoU with development of appointed as Gulbarga Propellant Delivered Chairman Start of University for composition for 1000th Start of Start of Explosives Solid research in LRSAM without Booster grain Explosives Detonators Development Propellants high energy comb

5. Slide 5: Management

   MANAGEMENT Dr. A. N. Gupta | Chairman Promoter Having earned his Masters degree in mining engineering, he has developed a penchant for learning and R&D. He has actively involved himself in product development projects of defence, new products and processes. A recipient of "Pickering and ISM Medal" f

6. Slide 6: Human Resource

   HUMAN RESOURCE  Over 1,200 dedicated and experienced employees  About 550 people trained in propellant and pyrotechnic Promote Recruit products  Team comprises of about 100 engineers / scientists HUMAN  Excellent relationship & conducive working environment RESOURCE  Very low attrition rate  R

7. Slide 7: Awards and Accolades, Letters of Appreciation

   AWARDS AND ACCOLADES Year Award From High Energy Materials 2016 HEMSI Honorary Fellowship 2016 Society of India 2015 Outstanding Entrepreneur Award from Enterprise Asia Appreciation for development of Propellant composition for LRSAM without 2014 from Director, DRDO combustion instability 2013 Inc.

8. Slide 8: Registrations & Ratings

   REGISTRATIONS & RATINGS  DSIR-recognized in-house R&D centre  NABL-accredited quality control laboratory  ISO 9001:2008 certification  CE marking for exports  REACH membership  ICRA rating (A- for long term, A2+ for short term)  D&B rating (4A2)  AS 9100C Certification – Under implementation

9. Slide 9: Business Segments

   BUSINESS SEGMENTS Commercial explosives Manufacturing a comprehensive range of sophisticated explosives at various locations. The range includes Bulk Explosives, Cartridge Explosives, Cast Booster, Detonators, Detonating Fuse, etc. These products are used by mining and infrastructure industries. Def

10. Slide 10: Commercial Explosives - Overview

    COMMERCIAL EXPLOSIVES - OVERVIEW Cartridge Explosives Bulk Explosives Cast boosters Detonators Detonating Fuse  Cartridge explosives are  Precursor emulsions  High detonation pressure  A device used to trigger the  Flexible, water proof cord used in quarrying, manufactured at centralised explos

11. Slide 11: Commercial Explosives - Major Customers

    COMMERCIAL EXPLOSIVES - MAJOR CUSTOMERS  Coal India Limited  Singareni Collieries Limited  Neyveli Lignite Limited  National Mineral Development Corporation  Karnataka EMTA  Cement manufacturers  Exports to Greece, Jordan, Turkey, Nepal, Thailand, Philippines, Indonesia, etc. 11

12. Slide 12: Commercial Explosives - Special Products

    COMMERCIAL EXPLOSIVES - SPECIAL PRODUCTS Explosive Bolts Pyrocartidges IR Flare IED-3 Detonator Cable Cutter Pyrotechnic Igniter 12

13. Slide 13: Commercial Explosives - Special Products

    COMMERCIAL EXPLOSIVES - SPECIAL PRODUCTS Gas Generator Riot control Devices Canisters TBI Squibs 13

14. Slide 14: Commercial Explosives - Industrial Licenses Received from DIPP

    COMMERCIAL EXPLOSIVES - INDUSTRIAL LICENSES RECEIVED FROM DIPP Product Award Date Site Mixed Explosives 17-Jun-16 Military fuses of all types including filling and assembling 01-Jul-15 Munition 20 mm and above including filling and assembling 01-Jul-15 War heads of all types including filling and as

15. Slide 15: Emerging Business - Defence & Space

    EMERGING BUSINESS - DEFENCE & SPACE Propellants Pyros Explosives Pyrogen igniters Pyro cartridges CL - 20 Case-bonded propellants Pyro actuators HNS - IV Free standing grains Explosive bolts Smoke / flash generators Fuel rich BKNO3 Igniters IR generators Gas generators Specialized squibs 15

16. Slide 16: Defence - Licences

    DEFENCE - LICENCES (INR mn) Product UoM Capacity Propellants Tons 1,000 Pyros Nos. 20,00,000 CL –20 Kgs. 10,000 HNS Kgs. 10,000 HNF Kgs. 10,000 Ammunition 40mm and above Nos. 10,00,000 Missiles & Rockets Nos. 1,00,000 - each Mines, Bombs and Torpedoes Nos. 1,00,000 - each MOB dispersion Devices Nos.

17. Slide 17: Defence - Strengths

    DEFENCE - STRENGTHS In-house Development Production under ToT  Akash booster / sustainer grains  LRSAM motors  Pyrogen Igniters for Strategic missiles Non Aluminium composition for Astra  MRSAM motors (Air to Air Missile)  ARM motors  Sledge rocket motors  LRSAM composition without combustion

18. Slide 18: Defence - Major Customers

    DEFENCE - MAJOR CUSTOMERS  Bharat Dynamics Limited (Production orders)  DRDO and their laboratories (Design & Development orders)  Bharat Electronics Limited  ECIL  State police, Central police, etc. (Tear gas grenades) 18

19. Slide 19: Defence - Propellant for LRSAM Missile

    DEFENCE - PROPELLANT FOR LRSAM MISSILE  LRSAM original composition developed after almost 5 years trials suffered the problem of combustion instability.  PEL solved the problem and developed an alternative propellant which was successfully tested on 10th November 2014 in Israel. Successful Home-On

20. Slide 20: Operation and Maintenance

    OPERATION AND MAINTENANCE  Operating and maintaining the solid propellant production facilities of two prestigious agencies, namely: 1. Satish Dhawan Space Centre SHAR of ISRO at Sriharikota, Andhra Pradesh 2. Solid Fuel Complex (SFC) of Advanced Systems Laboratory at Jagdalpur, Chattisgarh  These

21. Slide 21: Wind Power

    WIND POWER  800 kw wind mill at Pushpathur, Tamilnadu (PPP with TNEB)  250 kw solar pv plant at Peddakandukuru factory (captive consumption)  20 kw roof top solar plant at HO, Secunderabad (captive consumption)  Green power generation > Grid power consumption (no carbon footprint) 21

22. Slide 22: Plant Locations

    PLANT LOCATIONS Peddakandukur (Telangana) Detonator, Detonating fuse, Packaged explosives, product research & Special Products Divisions Bulk Explosives Singrauli (Madhya Pradesh) Chandrapur (Maharashtra) Godavarikhani (Telangana) Manuguru (Telangana) Neyveli (Tamil Nadu) Pushpathur (Tamil Nadu) Win

23. Slide 23: Uniquely Positioned for Growth

    UNIQUELY POSITIONED FOR GROWTH STRENGTHS OPPORTUNITIES ROADMAP  First mover advantage  ‘Self reliance’ in defence products  Enhance production of solid propellants (Akash, Astra, LRSAM,  First private producer of propellants  ‘Make in India’ in general manufacturing MRSAM, etc.)  Orders on han

24. Slide 24: Research and Development

    RESEARCH AND DEVELOPMENT $ Company ensures and thrives to remain at the Collaboration with Gulbarga University, IIT Madras and forefront of technology in its field and new BITS Pilani for research in high energy materials product development World-first in production of NHN based detonators on comme

25. Slide 25: Growth Drivers

    GROWTH DRIVERS Defence Procurement Policy 2016; linking it to Indian explosives industry, estimated to be INR “Make in India” policy, created the top priority 40 bn p.a., is considered among the top 5 in the procurement category, Indigenously Designed world. Coal requirements for the power sector De

26. Slide 26: Key Strategies

    KEY STRATEGIES Backward integration for solid propellants – raw Part of the ‘Make in India’ initiatives materials and insulation Market expansion in explosives and defence business Acquired 250 acres land for new defence projects with new Industrial licenses obtained Explore export opportunities for

27. Slide 27: Revenue Breakup – Segment Wise

    REVENUE BREAKUP – SEGMENT WISE (INR mn) (INR mn) FY15 FY16 Chg (%) Q1 FY16 Q1 FY17 Chg (%) Commercial explosives 1080.8 1307.3 21.0% 265.3 352.3 32.8% Defence explosives 249.7 371.8 48.9% 70.0 73.0 4.3% O&M 154.9 161.2 4.1% 38.9 45.2 16.2% Wind power 4.6 2.8 -39.1% 0.7 1.4 100.0% Total 1490.0 1843.1

28. Slide 28: Profit & Loss

    PROFIT & LOSS (INR mn) (INR mn) FY12 FY13 FY14 FY15 FY16 Q1 FY16 Q1 FY17 Chg (%) Revenue 1083.2 1094.0 1454.0 1494.9 1849.8 376.5 473.0 25.6% Operating profit 173.9 96.9 162.6 125.4 176.1 29.9 42.4 41.8% Profit before exceptional items 162.0 78.1 129.5 76.2 110.0 14.0 25.6 82.9% Net exceptional item

29. Slide 29: Balance Sheet

    BALANCE SHEET (INR mn) (INR mn) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Share Capital 81.3 81.3 83.6 88.6 88.6 Reserve & Surplus 373.6 403.3 488.7 530.5 565.9 Non Current Liabilities 90.8 115.5 115.4 90.3 74.7 Current Liabilities 235.0 298.9 385.6 423.2 567.7 Total Liabilities 780.7 899.0 1073.3 1132.6 1

30. Slide 30: Contact

    Contact PREMIER EXPLOSIVES LIMITED “Premier House”, 11, Ishaq Colony, (Near AOC Centre), Secunderabad – 500 015. S-ANCIAL GLOBAL SOLUTIONS PVT. LTD. (Investor Relations) 301, C-Wing, Neelkanth Business Park, Vidyavihar (W), Mumbai – 400 083. milan@s-ancial.com | Contact No.: 022 6143 2314

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