Slide 1: Cover letter to stock exchanges
SKILITER Date: 12 August 2019 The Manager The Manager National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Dalal Street Plot No. C-1, Block-G Mumbai- 400 001 Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Name- SKIPPER / BSE Scrip Cod
Slide 2: Investor Presentation Q1 Performance 2019-20: Broad-basing the pyramid
Q1 PERFORMANCE, 2019 - 20 SKIPPER LIMITED INVESTOR PRESENTATION Broad-basing the pyramid
Slide 3: About Us
SKIPPER LIMITED INVESTOR PRESENTATION About Us
Slide 4: Who We Are
WHO WE ARE Skipper Limited is India’s largest and world's most competitive integrated transmission tower manufacturing company 3
Slide 5: Key Facts
K E Y FA C T S • Flagship company of • Four Power Grid • Widely respected the S.K. Bansal Group Corporation of India- player; awarded Largest (incorporated 1981). approved transmission Tower Supplier Award by tower and pole Power Grid for 3rd • Angle rolling, tower, manufacturing plants consecutive
Slide 6: Key Management
SKIPPER LIMITED INVESTOR PRESENTATION Key Management
Slide 7: Board of Directors – Whole Time
B OA R D OF D I R ECTORS – W HOLE T I M E Sajan Kumar Bansal Sharan Bansal Devesh Bansal Siddharth Bansal Yash Pall Jain Managing Director Director Director Director Director He is the driving force A mechanical With a Master's in Heading the company's He is a B.com graduate behind the company's eng
Slide 8: Board of Directors – Independent
B OA R D OF D I R ECTORS - I N D E PENDEN T Mr. Amit Kiran Deb Mrs. Mamta Binani Mr. Joginder Pal Dua Mr. Ashok Bhandari Sri Pramod Kumar Shah C.A IAS (Retd.), Immediate Past Ex CMD - Allahabad C. A. He is a Fellow Chairman President ICSl Bank member of the He has profound He has held several She is
Slide 9: 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
Slide 10: Global Presence
FOOTPRINTS GLOBAL PRESENCE 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
Slide 11: Q1 FY'20 Update
SKIPPER LIMITED Performance Update Q1 FY’20 Update
Slide 12: Financial Performance Q1 FY'20
BUSINESS REPORT CARD Financial Performance Q1 FY’20 Rs in Mn Sl Profit & Loss Summary Q1 FY’20 Q1 FY’19 Change % 1 Revenues 3,385.6 4,787.0 -29.3% 2 Reported EBITDA 426.5 449.7 -5.2% % of Revenue 12.6% 9.4% 3 Forex Gain / (Loss) 33.2 (58.6) 4 Operating EBITDA (without Forex) (2-3) 393.3 508.4 -22.6%
Slide 13: Performance Update Q1 FY'20
PEFRORMACE HIGHLIGHTS Performance Update Q1 FY’20 Revenue impacted on account of – Slower than expected off take on account of general elections related challenges with in the country Consciously slowed down supplies to the customer unwilling to give secured payment terms Considering the liqui
Slide 14: Operational Performance Highlights
PEFRORMACE HIGHLIGHTS Performance Update Operational Performance Highlights Stand Alone operating EBITDA margins improved to 11.6% in spite of lower sales; The margins of engineering business are back to their normal historical range of 13%. Stable raw material prices and corrective steps undert
Slide 15: Segment Performance Q1 FY'20
SEGMENT REPORT Segment Performance Q1FY’20 Polymer Infra Segment Financial Summary Q1 FY’20 Q1 FY’19 7% 6% Net revenue 2,932.2 4,040.9 Engg. Products EBIDTA (w/o forex) 379.2 478.1 % of Revenue 12.9% 11.8% Net revenue 239.9 560.9 Polymer products EBIDTA (w/o forex) 5.2 6.5 % of Revenue 2.2% 1.2% Net
Slide 16: Improvement Trends: Op. EBITDA Margin
IMPROVEMENT TRENDS Op. EBITDA Margin (without Forex) 20% Engineering Stand Alone 12% 13% 13% 11% 10% 12% 12% 11% 10% 7% 6% 0% Q1'19 Q2'19 Q3'19 Q4'19 Q1 Fy'20 • Engineering & Stand Alone EBITDA margin are back to its normal range of 13% & 12 % respectively , Clocked the desired range for past 2 cons
Slide 17: Order Book to Sales stands at 1.5X
ORDER BOOK PIE Engineering Products – Order Book Composition – June 2019 Total Order Book T&D Order Book Rs 2,363 Crores Rs 1,985 Crores 6% 40% 40% 10% T&D Breakup 84% 20% T&D Telecom Railways PGCIL SEB & Others Export Domestic – 83% Export – 17% Order Book to Sales stands at 1.5 X 16
Slide 18: Order Inflows & Composition
ORDER INFLOWS & COMPOSITION • Secured new orders of Rs.185 crore in Q1 FY’20 for engineering products supplies from PGCIL, SEB’s and for various supplies across South America & Asia markets. • Strong growth trajectory in Telecom & Railway Businesses; Share of Non T&D Products at 16% in overall order
Slide 19: Performance Outlook
BUSINESS OUTLOOK PERFORMANCE OUTLOOK Strong rebound expected in domestic T&D action both on Ordering and Execution front from next quarter onwards Focus on strengthening the international T&D order book ; Positioned to grow exports to 40% of revenue in next 2 years Desired EBITDA margin focus of 12-
Slide 20: The Big Message
BUSINESS MANTRA THE BIG MESSAGE Profitability in Conscious Sectoral Skipper Progressive a downturn is slowing down: consolidation opportunity- broadbasing a validation of Not chase to lead to next ready to strengthen Skipper’s growth at the rebound; through re- revenues and business cost of opportun
Slide 21: Core Strategy
Core Strategy BROADBASING OUR PYRAMIDS
Slide 22: What is Broadbasing the Pyramid?
W H AT I S B R O A D B A S I N G T H E P Y R A M I D ? ENGINEERING PRODUCTS BUSINESS 1 2 Broadbasing the number of Broadbasing the customer mix sectors addressed within each sector (government Riding the growth of some fast- and non-government) growing segments into the long-term Riding the inflecti
Slide 23: Why We Are Broadbasing
WHY BROADBASING THE PYRAMID? WHY WE ARE BROADBASING To strengthen To be able to capitalise on To strengthen margins; some sectoral upturns competitiveness; sectors promise with speed; last person lower working capital cycle faster off the standing blocks To report a To transform To progress lower se
Slide 24: What Will Facilitate Our Broadbasing
STIMULUS BEHIND BROAD BASING THE PYRAMID? W H AT W I L L F A C I L I TAT E O U R B R O A D B A S I N G 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
Slide 25: The Impact of the Broadbasing: Four Drivers
KEY DRIVERS OF THE IDEA T H E I M PA C T O F T H E B R O A D B A S I N G : F O U R D R I V E R S Focus on Building credential and Focus on telecom Increased projects coming out and railways of PGCIL, SEB and relationship with bidding for global EPC players sectors (domestic projects private transmis
Slide 26: Broadbasing Woven Around Financial Discipline
BROADBASING WOVEN AROUND FINANCIAL DISCIPLINE Driven by the Bids for projects Believes that no Consistent philosophy of that meet basic IRR business is better resistance to chasing profitable criteria than bad volumes over growth business profits Can temporarily Geographic Invested in pre-bid and se
Slide 27: Future Ready
SKIPPER LIMITED INVESTOR PRESENTATION Future Ready
Slide 28: Broadbasing to Reduce Domestic Dependence
EXPLORING NEW GEOGRAPHIES BROADBASING TO REDUCE DOMESTIC DEPENDENCE • Opportunity-ready: Certified by prominent International certifications international organizations for confidence- Certification Country enhancing certifications CFE/LAPEM Mexico • Established traction: Working with over 100 CWB C
Slide 29: Skipper Is Clearly Poised to Be in the Winning Spot in International T&D
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
Slide 30: Growing Global Competitiveness
GROWING GLOBAL COMPETITIVENESS SKIPPER C H I N E S E M A N U FA C T U R E R S WHAT MAKES US MORE COMPETITIVE 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 : Chine
Slide 31: Considerable Increase in Bidding Volumes from International T&D
GROWING GLOBAL COMPETITIVENESS Considerable increase in Bidding Volumes from International T&D Sector Bidding Volumes 2017-18 2018-19 Change T&D sector Rs in Cr Rs in Cr % International T&D 810 2,510 210% Domestic T&D 1,625 1,310 -19% Total 2,435 3,820 57% FY 2018-19 FY 2017-18 34% 33% 66% 67% Domes
Slide 32: Global T&D Investment Opportunities
GLOBAL NEED 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. 31
Slide 33: T&D Industry Overview in India
INDIA STORY 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 o
Slide 34: Strong Opportunity in India's T&D Sector
DOMESTIC OPPORTUNITIES STRONG OPPRTUNITY IN INDIA’S T&D SECTOR • Planned government transmission sector investment of Rs 2.6 lakh crore in FY17-22; estimated Total line Rs 1.3 lakh crore allocated for intra-state transmission capacity. SEBs and private players to capacity drive orders • Village elec
Slide 35: Expected Transmission System Addition During 2017-22
HOW WE PERFORMED IN Q3 2018-19 EXPECTED TRANSMISSION SYSTEM ADDITION DURING 2017 -22 Transmission line Addition during 2017-18 Planned addition during Balance capacity to be As of March 2017 length(ckt. km) (till September 2017) 2017-22 added by 2022 HVDC (800/500 kV) 15,556 - 4,280 4,280 765 kV 31,
Slide 36: Reasons for Long-Term Sectoral Optimism
POSITIVE OUTLOOK 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 exten
Slide 37: Emerging Growth Drivers: Railways & Telecom
GAME POINT EMERGING GROWTH DRIVERS R A I LWAY S & T E L E C O M 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 a
Slide 38: Railways Electrification
R A I LWAY E L E C T R I F I C AT I O N S E C T O R RAILWAYS ELECTRIFICATION 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 Str
Slide 39: Skipper Poised to Win in the Railway 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 R A I L W AY S E C T O R • Large engineering capacity which can be deployed to make Railway Masts • Low cost base of manufacturing • One plant already approved - three more under approval
Slide 40: 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
Slide 41: Skipper Set to Win 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
Slide 42: 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 70%+ gross block Among few Indian One of few Indian manufacturing state-of-the-art less than six years companies assured companies with capacity of 51,000 manufacturing old of CPVC for pipes NSF certificati
Slide 43: Partnership with Vector Consulting
S T R AT E G I C PA R T N E R S H I P PARTNERSHIP WITH VECTOR CONSULTING 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
Slide 44: 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
Slide 45: Awards and Accolades
HONORS AWARDS AND ACCOLADES AWARD: AWARD: AWARD: AWARD: THE LARGEST TOWER EMERGING POWER GLOBAL HR NO. 1 EMERGING SUPPLIER FOR 3rd EPC PLAYER EXCELLENCE BRAND IN CONSECUTIVE YEAR GIVEN BY: EPC GIVEN BY: POLYMER PIPES & GIVEN BY: WORLD WORLD HRD FITTINGS POWER GRID CONGRESS GIVEN BY: WCRC CORPORATION
Slide 46: Disclaimer and contact
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