Kuantum Papers Limited

rs,

rinting of books, notebooks, annual reports, directories, account books, envelopes, diaries, calendars, computer &office stationery, soap wrapping, cups and straws. • • The company manufacturers its pro

1 crore

al farm forestry program includes wood plantations of around 3,300 acres and it envisions to reach 1 crore saplings in 5 years. Investor Presentation Operational Revenue (INR Mn) & EBITDA Margins (%) 7,

15.91%

ngs in 5 years. Investor Presentation Operational Revenue (INR Mn) & EBITDA Margins (%) 7,447 15.91% 4,039 7.25% 8,304 14.33% 9,658 27.46% FY20 FY21 FY22 9M-FY23 Sales Volume (MT) 1,25,

7.25%

Investor Presentation Operational Revenue (INR Mn) & EBITDA Margins (%) 7,447 15.91% 4,039 7.25% 8,304 14.33% 9,658 27.46% FY20 FY21 FY22 9M-FY23 Sales Volume (MT) 1,25,267 84,183

14.33%

ntation Operational Revenue (INR Mn) & EBITDA Margins (%) 7,447 15.91% 4,039 7.25% 8,304 14.33% 9,658 27.46% FY20 FY21 FY22 9M-FY23 Sales Volume (MT) 1,25,267 84,183 1,51,674 1,13,

27.46%

onal Revenue (INR Mn) & EBITDA Margins (%) 7,447 15.91% 4,039 7.25% 8,304 14.33% 9,658 27.46% FY20 FY21 FY22 9M-FY23 Sales Volume (MT) 1,25,267 84,183 1,51,674 1,13,720 FY20 FY21

0%

FY23 Sales Volume (MT) 1,25,267 84,183 1,51,674 1,13,720 FY20 FY21 FY22 9M-FY23 3 0.0 0% 2 5.0 0% 2 0.0 0% 1 5.0 0% 1 0.0 0% 5 .00 % 0 .00 % 2 Board of Directors Sh. Jagesh Khaita

00 %

51,674 1,13,720 FY20 FY21 FY22 9M-FY23 3 0.0 0% 2 5.0 0% 2 0.0 0% 1 5.0 0% 1 0.0 0% 5 .00 % 0 .00 % 2 Board of Directors Sh. Jagesh Khaitan - Chairman • Sh. Jagesh Khaitan is the Chairma

INR 4,440 million

tion cum upgradation project has been successfully completed in March 2021 with a capital outlay of INR 4,440 million. • Branding of paper products in a commoditized paper business has paid rich dividends, as a resul

7%

nitoring and planned shuts. Investor Presentation 4 Geographical Presence & Sales Model Punjab 7% Haryana 10% Delhi 32% Rajasthan Gujarat 4% 4% Madhya Pradesh 1% Maharashtra 6% Jammu &

10%

planned shuts. Investor Presentation 4 Geographical Presence & Sales Model Punjab 7% Haryana 10% Delhi 32% Rajasthan Gujarat 4% 4% Madhya Pradesh 1% Maharashtra 6% Jammu & Kashmir 7%

32%

s. Investor Presentation 4 Geographical Presence & Sales Model Punjab 7% Haryana 10% Delhi 32% Rajasthan Gujarat 4% 4% Madhya Pradesh 1% Maharashtra 6% Jammu & Kashmir 7% Delhi 32% U

“• Composite Project with PM 4 -250 TPD, Chemical Recovery plant -200 TPD and Co-Generation Power Plant – 10 MW undertaken.”

“Project KITE launched with KPMG for operational excellence.”

“• Project KORE launched with Accenture for operational excellence.”

“• Backward Integration Project of INR 4,440 Million initiated.”

“Investor Presentation 2022 Production capacity increased to 1,64,250 MTPA 2021 • Backward Integration Project completed in March’21.”

“• Cost of power - will be in the range of INR 3 – 3.5/unit as against INR 4.75 – 5.0/unit currently.”

“Kuantum launched the Social- Forestry Plantation Project and is producing quality clonal plants of Eucalyptus and over the years has covered 3,300 approximately acres area under clonal plantation.”

“We aim to increase our footprint to almost 1 crore saplings per annum in the coming years to ensure a sustainable source of wood material.”

“• Paper consumption in India is likely to witness 6% to 7% annual growth and will reach 30 Million Ton by FY 2026-27, largely driven by emphasis on education and literacy coupled with growth in organized retail, according to industry body IPMA.”

“• The W&P segment will be benefited from the implementation of the National Education Policy 2020 • The industry size of single-use plastics is estimated to be INR 10,000 crore and these will need to be replaced with paper straws, paper bags, cup-stocks and other paper products.”

Order based manufacturing

1

Inventory

1

Collection Mechanism

1

New CRP

1

Existing CRP

1

Turbines

1

Valorem Advisors Disclaimer

1

Order based manufacturing

• The production is order based and manufacturing is undertaken after the company receives advance orders from dealers/distributors. • The company does not operate on fixed SKUs. They service their dealers based on customized order sizes, rather than fixed sizes offered by most of the competitors.

Collection Mechanism

• Collection is done strictly within 5 days of date of Chhattisgarh Chhattisgarh Invoice. Telangana # Export accounts for 15% of the total sales for FY22 Investor Presentation 5 Company History and Milestones 1980 1988 2000 2002 2005 2006 Established with a capacity of 30 TPD with PM 1&2. PM 3 installed with a capacity of 100 TPD. Debottlenecking done to achieve 40% improved efficiency on output. National Energy Conservation Award conferred by the Vice President of India. • Lignin Precipitation Plant installed in collaboration with Tanovis AG (formerly Granit Recherché SA), Switzerland. • PM 1 & 2 capacity up- graded to 60 TPD. Agro Pulp Mill upgraded to 150 TPD along with the Continuous Digestor. 2007 2008 2012 2013 2014 2015 Restructuring of ABCL took place, renamed Paper Division as ABC Paper Ltd. • Composite Project with PM 4 -250 TPD, Chemical Recovery plant -200 TPD and Co-Generation Power Plant – 10 MW undertaken. • Listed on BSE. • The company was renamed Kuantum Papers Limited

Existing CRP

200 Solids TPD • A chemical recovery plant of 500 TPD supplied by Andritz is a HERB recovery boiler with SRS technology has been installed to process caustic from Black Liquor. The Chemical Recovery Plant has three major components: Recovery Boiler Evaporator Recausticizing Plant • The plant has significantly increased the steam- to - solid ratio, which in turn improves the efficiency of the overall plant operations. • The treatment of black liquor helps in regenerating Caustic soda up to 95%+ in the recovery process Note: Caustic soda is an expensive chemical used in the pulp making process Investor Presentation 14 Co-Gen Power Plant Total Capacity : 38 MW

Turbines

• New : 20 MW & 8 MW • Existing Turbines: 10 MW Boilers : Total 190 TPH • New : 130 TPH • Existing : 60 TPH • The need of the hour is to be self-sufficient in power requirement in order to sustain operations on a long-term basis. • Kuantum has a captive Co-generation Power Plant in which they have added: o A high pressure CFBC Boiler supplied by ISGEC. o Two highly efficient back pressure turbines of 20 MW and 8 MW, supplied by SIEMENS. • The Co-Gen Power Plant allows the company to decrease its dependency on the State power Grid, enabling it to maintain seamless operations at all times. • Cost of power - will be in the range of INR 3 – 3.5/unit as against INR 4.75 – 5.0/unit currently. Investor Presentation 15 Effluent Treatment Plant The company has up-graded existing Effluent Treatment Plant with an objective of sustained parameters of treated effluent as well as to be ‘future ready’ to meet all Environmental norms. Low COD Street-1 is with Aerobic treatment. Effluent Treatment faci

Valorem Advisors Disclaimer

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further information please contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: kuantum@val