SARDAENNSE6 August 2019

Sarda Energy & Minerals Limited has informed the Exchange regarding Investor Presentation

Sarda Energy & Minerals Limited

Industrial Growth Centeri Siltara Raipur (CG) 493111, India Tel: +91 771 2216100 Fax: +91 771 2216198/99 PAN N0.: AAACR6149L CIN : L27100MH1973PLC 016617 www.sem|.co.in info@seml.co.in

An ISO 9001, ISO 14001 &OHSAS 18001 cemfied C°mpany ,{éw Kg”;

SARDA

SARDA ENERGY & MINERALS LTD.

6th August, 2019

BSE Ltd The Department of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street — Mumbai 400 001

National Stock Exchange of India Ltd. Exchange Plaza, Bandra Kurla Complex Bandra (E), Mumbai - 400051 Fax. N o: 022-26598237/ 38, 022-26598347/ 48

Security Code No. : 504614

Symbol: SARDAEN

Series : EQ

Dear Sir,

Sub:

Corporate Presentation

With reference to the captioned subject, pursuant to Regulation 30 (6) read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015, we are enclosing herewith the Corporate Presentation on the Q1 FY 20 results of our Company.

The copy of the said Corporate Presentation is also being placed on the website of the company - www.seml.co.in. The said presentation will also be shared with various Anaiysts / Investors.

You are requested to take the information on records and disseminate the same for the information of the investors. Please acknowledge receipt.

Thanking you,

Yours faithfully, For Sarda Energy & Minerals Ltd.

cretary

Encl: As above

Registered Office .' 73/A, Centre/Avenue, Nagpur (MH) 440018, Tel: 91 712 2722407 Fax: 0712-2722107 India

Sarda Energy & Minerals Limited ...On Course Towards the Next Growth Trajectory

Investor Presentation | August 2019

Safe Harbour Statement

This presentation and the accompanying slides (the

which have been prepared by Sarda Energy & Minerals Ltd (the

solely for information purposes and do not constitute

any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever.

No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but 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. All product names, logos,

and brands are property of their respective owners. All company, product and service names used in this presentation are for identification purposes only. Use of these names, logos, and brands does

not imply endorsement.

Certain matters discussed in this Presentation may contain statements regarding the

market opportunity and business prospects that are individually and collectively forward-looking

statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict.

These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India

and world-wide, competition, the

ability to successfully implement its strategy, the

future levels of growth and expansion, technological implementation, changes and

advancements, changes in revenue, income or cash flows, the

market preferences and its exposure to market risks, as well as other risks. The

actual results, levels of activity,

performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking

information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is

not responsible for such third party statements and projections.

Agenda

Q1 FY20 : Business Update & Financial Highlights

SEML Consistent & Disciplined Growth

Strategic Priorities

Annual Financial Highlights

Q1 FY20 :

Business Update & Financial Highlights

Q1FY20 Performance Highlights (Consolidated)

Q1FY20 - Key Operational Highlights

- Planned shutdown of Vizag plant for 30 days impacted the Revenue and EBITDA during the quarter

- Highest ever Thermal Power generation (Standalone): 150Mn Kwh (Growth of 9% YoY)

- Highest ever Steel Billet Production: 50,694 MTs (Growth of 37% YoY)

- Highest ever Wire Rod production: 39,652 MTs (Growth of 32% YoY)

566crores

De-grew by 7% YoY

121crores

Margins enhanced by 100 bps YoY

51crores

Grew by 12% YoY

Total Income

EBITDA

PAT

Profitability Highlights - Consolidated

INR in Cr

Revenues

Other Income

Total Income

Raw Material

Employee Expenses

Other Operating Expenses

EBITDA

EBITDA Margin (%)

Depreciation

Interest

Profit Before Tax

Exceptional Item

Tax

PAT

PAT Margin (%)

EPS

Q1FY20

Q1FY19

YoY

Q4FY19

QoQ

555

566

350

121

21%

624

-14

610

394

123

20%

-7%

-2%

100 bps

-3%

12%

200 bps

496

521

326

106

20%

13.16

12.49

12.96

14%

27%

13%

Planned shutdown of Vizag plant for 30 days impacted the Revenue and EBITDA during Q1FY20

Profitability Highlights - Standalone

INR in Cr

Revenues

Other Income

Total Income

Raw Material

Employee Expenses

Other Operating Expenses

EBITDA

EBITDA Margin (%)

Depreciation

Interest

Profit Before Tax

Exceptional Item

Tax

PAT

PAT Margin (%)

EPS

Q1FY20

Q1FY19

YoY

Q4FY19

QoQ

421

429

254

101

24%

12%

14.56

442

-16

426

258

109

26%

12%

14.4

-7%

(200) bps

-7%

351

367

226

20%

10%

10.52

17%

37%

300 bps

51%

38%

200 bps

Quarterly Volume Steel Business

Iron Ore Pellets

Sponge Iron

Steel Billets

203

199

151

125

Q1FY19

Q1FY20

Q1FY19

Q1FY20

Q1FY19

Q1FY20

Wire Rod

H. B Wires

Ferro Alloys

Q1FY19

Q1FY20

Q1FY19

Q1FY20

Q1FY19

Q1FY20

Note: A part of all production is captively consumed for production of downstream products

Production

Sales

All Fig. in ‘000 MT unless specified

Quarterly Generation & Sales - Power Business

Power (Thermal)

Power (Hydro)

279

276

Q1FY19

Q1FY20

Q1FY19

Q1FY20

Thermal Power (Captive) Capacity : 162 MW

All Fig. in Mn KwH unless specified

Generation

Sales

SEML Consistent & Disciplined Growth

SEML at a Glance

Steel Business

Hydro Power

Financials (FY19)

Pellet Production 6 Lac MT

Billet Production 1.56 Lac MT

Operational Capacity 28.8 MW

Revenue INR 2,217 Cr

EBITDA INR 499 Cr

Wire Rod Production 1.18 Lac MT

Ferro Alloys Production 1.49 Lac MT

Iron Ore Reserves 20 Mn T

Capacity Under Execution 120 MW

PAT INR 207 Cr

Dividend Per Share INR 5/Share

 Acquired Raipur Wires and Steel as a sick unit in 1979

 Installed 10 MT electric arc furnace in 1981 to produce ingots

 Installed

continuous casting machine in 1984 for billets production

 Company started 24 MW captive power plant and Ferro Alloy plant in 2001

 Commenced a fly ash brick

plant

 Acquired Iron ore mine with reserves of 20 Mn MT. Commenced ore extraction in 2004

iron

 Billet capacity increased

by 50% in FY19

 Pellet Capacity proposed to increase from 6,00,000 MT to 8,00,000 MT

 Commissioning of 96 MW Hydro Power plant located in Sikkim in FY20 and 24 MW plant in located Chhattisgarh in FY23

1979-89

1989-99

1999-08

2008-18

Post 2018

 Installed 25 TPD Electric Arc Furnance in 1990

 Acquired 3 Power units

in 1993-94

 Installed

Two Sponge Iron Kilns of 30K MT each in 1993 & 1995

 Sold two power units and installed one as captive power plant

 4.8 MW Hydro power plant commissioned in 2008-09

 Pellet

plant operations in 2009-10

commenced

 66 MVA Ferro Alloys plant & 80 MW Thermal power plant started at Vizag in 2012-13

 24 MW Hydro Power project started in July 2017 at Chhattisgarh

Kamal Kishore Sarda

Pankaj Sarda

CMD

Joint MD

• Mechanical Engineer with 40 years in Iron and Steel

experience Industry

• MS in Industrial Administration from

Purdue University, USA

• Responsible

for

steering SEML

towards the path of growth

• Industry experience of more than

12 years

Padam Kumar Jain

Director & CFO

• CA, CS with a rich experience of 31

years

• Looks after accounting,

finance, taxation, costing and corporate laws

Manish Sarda

Director

Neeraj Sarda

Director

• MBA in International Business with 25 years of experience in Iron and Steel Industry

• Presently

focused

development of segment

overall the Ferro alloys

• MBA in Finance & Marketing with more than 15 years of experience in Iron & Steel Industry

• Second generation entrepreneur, Managing Deputy presently Director of Sarda Metals & Alloys Ltd

Rajnandgaon (Iron Ore mine) to Siltara (SEML Plant) 140 kms

Plants / Facilities

Hydro Plant at Uttarakhand

Hydro Plant at Sikkim

Hydro Plant at Gullu

Steel Plant (SEML** Plant) at Siltara

Ferro Alloy Plant at Vizag under SMAL*

Iron Ore Mine at Rajnandgaon

*SMAL – Sarda Metals & Alloys Ltd ** SEML – Sarda Enery & Minerals Ltd

Lower transportation costs due to close proximity to raw materials and end users

Strategic Priorities

Vertically Integrated Steel Player

Better Control / Lower Cost of Production

Hydro Business Expansion

Visibility of incremental Stable Cashflow

Disciplined Growth

Consistently improving Balance Sheet Strength

Health, Safety & Social Responsibility

Focus on overall well-being of the people

Iron Ore

Pellets

Sponge Iron

Billets

Wire Rods & HB Wires

Description

140 km near SEML Plant, Siltara

Produced from Iron Ore fines & sold domestically

Produced from captive Iron Ore Lumps & Pellets

Semi finished steel product produced by continuous casting process

Hot rolled product made from direct hot billet charging

Current Capacity

Production run rate of 500,000 MT with mine life of 30 years

6,00,000 MT

3,60,000 MT

2,00,000 MT

2,10,000 MT

Captive Consumption (%)*

Expansion

100%

27%

50%

78%

Wire rods : 18%

• Mines

allotted

in Chhattisgarh with 240 Mn Tonnes of reserves

• Expansion of capacity to 8,00,000

MT#

• Started Exports during the year

• Preferred Route of Steel making

• Expansion of capacity to 3,00,000

• Thermal Coal sourced locally

• Well positioned with complete

back end integration

•

Increase in Billet production lead to rise in wire rods production

• Exported for first time

# In FY19, the pelletisation capacity is increased to 8,00,000MT of which 200,000 MT is pending final for MoEF approval

•

Two operational plants located at Raipur and Vizag with a total installed capacity of 111 MVA

• Manufactures manganese based Ferro Alloys sold domestically as well

exported to other countries

Leading exporter of the Ferro Alloys

Exports Awards:

•

 SMAL received prestigious export promotion council award in 2018

 SEML & subsidiary received Two-Star export house status from

Government of India

FY 15

FY 16

FY 17

FY 18

FY 19

Hydro Power Expansion

Operational Capacity

Under Execution

Uttarakhand

Chhattisgarh

Sikkim

Chhattisgarh

4.8 MW

24.9 MW

96 MW

24.9 MW

Operational since 2008

Operational since 2017

To be commissioned in FY20

Debt

free operation & operated at

Expected long term PLF to be around

Large hydro projects of over 25 MW

Land

acquisition

regulatory

45.42% PLF during FY14-17

40-45%

capacity classified as renewable power

approvals in place

PPA signed at INR 3.85 per unit with

the state discoms for 35 years

PPA signed at INR 5.22 per unit with

Major Project works completed with

state discoms for 35 years

expected COD in March 2020

Financial Closure under progress

Average units sold stand at 19.33 mn

on a yearly basis

Plant generating free cashflow from first year of operation

… Sikkim project completion to provide incremental stable cashflow

Disciplined Growth

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

Consistently improving Balance Sheet Strength

1,756

1,768

1,778

1,822

1,702

1,576

1,537

1,358

1,210

1,223

1.77

1.45

1.26

2.5

1.5

Rs. Cr

Term Loan

Working Capital

Total

Steel

424

224

648

Hydro Operational

120

1.12

Total

544

224

768

0.98

0.5

Hydro Under execution

594

Total

1,138

224

1,362

Steel Business includes Loans on major subsidiaries SEML & SMAL Hydro Business includes Loans on major subsidiaries PPL, CHPLLP, & MBPCL

FY15

FY16

FY17

FY18

FY19

Networth

TOL

TOL/NW

All Fig. in Cr. unless specified

Focus on Safety, Health & Social Responsibility

Health & Safety

No. of Incidents (including minor )

Social Responsibility

• Safety is taken as top priority

• Regular medical check ups &

inhouse medical facilities

•

rate (including minor Incident injuries) has seen a declining trend over past few years

• Conducting trainings on safety

measures every year

CY14

CY15

CY16

CY17

CY18

• Adopted 90 single-teacher schools in the tribal areas of Chhattisgarh

• Actively

facilities, healthcare

Sarda Energy & Minerals Limited has informed the Exchange regarding Investor Presentation

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