Skipper Limited has informed the Exchange about Investor PresentationWe are forwarding herewith Investors Presentation on the financial performance of the Company for the third quarter and nine months...

SKIPPER

Date: 19 January 2021

The Manager National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C-1, Block-G Bandra Kurla Complex, Bandra (E) Mumbai- 400 051

The Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalai Street Mumbai- 400 001

NSE Scrip Name- SKIPPER/BSE Scrip Code- 538562

Re: Investors Presentation

Dear Sir,

We are forwarding herewith Investors Presentation on the financial performance of the Company for the third quarter and nine months ended 31 December 2020.

Kindly take the same on record.

Thanking you,

Yours faithfully, For Skipper Limited

Manish Agarwal Company Secretary & Compliance Officer

Encl: As above

SKIPPER LIMITED Regd. Office : 3A, London Street, 1st Floor, Kolkata - 700 017 CIN : L40104WB1981 PLC033408 Phone : 033 2289 2327 / 5731 / 5732, Fax : 033 2289 5733 Email : mail(i)skipperlimited.com, Website : www.skipperlimited.corn

Q3& 9M PERFORMANCE, 2020 - 21

SKIPPER LIMITED INVESTOR PRESENTATION Q3 & 9M FY’21 Results

D I S C L A I M E R

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 contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Skipper makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This Information includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to investment in the Company. This presentation may contain statements that are not historical facts, referred to as “forward looking statements.” The corporation’s actual future results may differ materially from those suggested by such statements, depending on various factors including statements contained in the Company's filings with the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any written or oral forward-looking statements that may be made from time to time by or on behalf of the Company

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W H O W E A R E

Skipper Limited is India’s largest and world's most competitive integrated transmission tower manufacturing company

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P R O D U C T O F F E R I N G S

S K I P P E R : O N E - S T O P S O L U T I O N P R O V I D E R

Engineering products

Polymer products

Infrastructure projects

Capacity: 300,000 MTPA • Power Transmission Tower • Power Distribution Poles • Monopoles • MS & High Tensile Angles • Solar Structures • Fasteners • Tower Accessories • Railway Structures

Capacity: 51,000 MTPA • UPVC Pipes • CPVC Pipes • SWR Pipes • HDPE Pipes • Fittings

M I S S I O N

• Transmission Line EPC • Railway Electrification EPC • Underground Utility laying by HDD

Highlights Positioned as one of the world's leading transmission tower manufacturer; largest in India

Highlights • Only polymer pipe company in India to implement TOC in its operations

Highlights • Forward integration activity • Aimed at high-margin projects

SKIPPER LIMITED Performance Update

Q3 & 9M FY’21 Update

B U S I N E S S R E P O R T C A R D

F i n a n c i a l P e r f o r m a n c e Q 3 ’ 2 1

Sl

Profit & Loss Summary

1

2

3

4

5

Revenues

Reported EBITDA

EBITDA Margins

(+) Other Income

(-) Depreciation

(-) Finance Cost

Finance Cost as % to Revenue

6

Profit Before Tax (2+3-4-5)

7

8

PBT Margins

Tax

Profit After Tax (8-9)

PAT Margins

Q3 FY’21

4,598.5

441.1

9.6%

9.7 110.4

169.1

3.7%

171.3

3.7%

56.9

114.4

2.5%

Rs in Mn

Q3 FY’20

Change %

2,998.4

347.2

11.6%

12.3 95.8

201.3

6.7%

62.3

2.1%

17.8

44.6

1.5%

53.4%

27.1%

-16.0%

174.8%

156.8%

Note: Reported EBITDA includes derivative and foreign exchange Gain of Rs 80.4 mn & Rs 17.1 mn in Q3 Fy’21 & Fy’20 respectively

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B U S I N E S S R E P O R T C A R D

F i n a n c i a l P e r f o r m a n c e 9 M ’ 2 1

Rs in Mn

Sl

Profit & Loss Summary

9M FY’21

9M FY’20

Change %

1

2

3

4

5

Revenues

Reported EBITDA

EBITDA Margins (%)

Other Income

Depreciation

Finance Cost

Finance Cost as % to Revenue

6

Profit Before Tax (2+3-4-5)

7

8

PBT Margins (%)

Tax

Profit After Tax (8-9)

PAT Margins (%)

10,841.5

1,009.2

9,516.5

1,119.3

13.9%

-9.8%

9.3%

16.4 336.3

514.0

4.7%

175.3

1.6%

55.4

120.0

1.1%

11.8%

16.7 284.2

649.0

6.8%

202.7

2.1%

61.7

141.0

1.5%

-20.8%

-13.5%

-14.9%

Note: Reported EBITDA includes derivative and foreign exchange Gain of Rs 264.5 mn & Rs 39.3 mn in 9M Fy’21 & Fy’20 respectively

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P E F R O R M A C E H I G H L I G H T S

Strong Revenue Performance across all business segments

Stand Alone - Revenue

Segment - Revenue

Rs in Mn

Rs in Mn

4,598

53%

3,544

+ 55%

2,998

2,284

+ 63 %

+ 32 %

626

384

428

330

Q3 FY '21

Q3 FY'20

Engg

Polymer

Infra

Q3 Fy'21

Q3 FY'20

Our Integrated Plant functions, close proximity to raw material sources and employment of local labor in our Mfg plants - provides us a great edge and control in our operations and supply chain management, helping us to overcome this crisis quickly.

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P E F R O R M A C E H I G H L I G H T S

Q3 FY’21 - Performance Update

 Strong Revenue performance across all the business segments

 Focus continues on Bottom-line improvement; PBT & PAT grew significantly in compare to previous

year quarter.

 Unprecedented commodity price rally in our Key raw material items (i.e Steel & Zinc) and higher

ocean freight rates adversely impacted profitability of our Engineering segment business.

 Finance cost as % of sales reduced to 3.7% against 6.7 % in previous year quarter.

 Secured new orders of Rs 2,300 million in Q3 FY’21 for engineering products supplies from PGCIL,

SEB’s, Telecom and for supplies across various export markets ; YTD inflow at 4,940 million

 Actively pursuing projects worth Rs 28,000 million on international front and about Rs 12,500

million on the Domestic front.

 Stronger expected execution in both Engineering & Polymer segment going forth coupled with Productivity and cost reduction initiatives at the plant and site level are expected to further improve efficiency in operations and aid to stable margins

 Fully operationalised state of art Transmission Line Tower Testing Station (DSIR recognised).

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S E G M E N T R E P O R T

S e g m e n t P e r f o r m a n c e Q 3 & 9 M F Y ’ 2 1

Polymer 13%

Infra 10%

Engg 77%

Revenue Mix – 9M FY’21

Note: Segment Operating EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of Sales & Capital Employed in their respective segment

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SegmentProfit & Loss SummaryQ3 FY'21Q3 FY'20Change %9M FY'219M FY'20Change %Net Sales3,544.1 2,284.6 55.1%8,321.2 7,860.5 5.9%EBITDA - Operating301.7 293.8 2.7%692.9 1,021.7 -32.2%% of Sales8.5%12.9%8.3%13.0%Net Sales626.0 384.0 63.0%1,373.5 925.0 48.5%EBITDA - Operating22.5 14.9 50.9%25.6 25.0 2.4%% of Sales3.6%3.9%1.9%2.7%Net Sales428.4 329.8 29.9%1,146.9 731.0 56.9%EBITDA - Operating36.5 21.4 70.5%26.2 33.3 -21.4%% of Sales8.5%6.5%2.3%4.6%Net Sales Total4,598.5 2,998.4 53.4%10,841.5 9,516.5 13.9%EBITDA Total360.7 330.1 9.3%744.7 1,080.0 -31.0%% of Sales7.8%11.0%6.9%11.3%Engg ProductsPVC ProductsInfra Projects TotalE f f i c i e n t D e b t M a n a g e m e n t

Debt Details

Rs in Million

31.03.2020

31.12.2020

Inc / (Dec)

Long Term Debt

Current Maturities of Long Term Debt

Total Long Term Debt

Short Term Debt

Gross Debt Level

Debt Equity Ratio (X)

1,569

344

1,913

2,624

4,537

0.66

2,083

700

2,783

1,226

4,009

0.57

514

356

870

(1,398)

(528)

(0.09)

 Gross Debt reduced by Rs 528 million during the period, on account of better working

capital utilisation.

 9M YTD Finance cost down by 21 % in compare to previous year

 Efforts continues on cash flow & balance sheet consolidation, focus to improve bottom-

line profitability

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O R D E R B O O K P I E

E n g i n e e r i n g P r o d u c t s – O r d e r B o o k C o m p o s i t i o n – D e c 2 0 2 0

Total Order Book Rs 15,990 million

T&D Order Book Rs 14,120 million

4%

8%

T&D Breakup

88%

35%

27%

38%

T&D

Telecom

Railways

Domestic – 67%

Export – 33%

PGCIL

SEB & Others

Export

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S t r o n g B i d d i n g P i p e l i n e

Strong Bidding Pipeline of 40,500 Million as on 31st Dec 2021; International – 28,000 Mn & Domestic - 12,500 Mn

•

•

•

•

Expecting International Ordering & Execution to gain pace in Q4 FY’21;

In advanced Stages of negotiation to secure some good size International contract

Large pent up demand in domestic T&D ; Order awards continues to remain muted

Increased focus on building up Engineering capabilities

International

 Growing global competiveness; Focusing on international markets to drive the ordering growth;

 Strong Anti China Sentiment; and global supply chain now actively looking for reducing their dependence on China is a great positive outcome of this crisis ; will bring more opportunities on our way

 Majority of New Transmission lines are now getting built to cater renewables; leading to shorter

execution cycle and faster supplies to meet project deadlines.

Domestic

 After a 2 years lull, The domestic T&D actvities are showing signs of rebound

 Large bunching up of order that remained postponed + Rs 500,000 million of GEC related projects to

come up for bidding will provide much needed boost to the domestic transmission industry

 Tender Pipeline continues to stay strong, Many tenders in the domestic T&D market which got

postponed, largely GEC related projects – now expected to be concluded in Q4’21 / Q1’22 .

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E x p o r t - P o s i t i o n e d f o r G r o w t h

International Certifications

Credential Establishments

Audit Approval of Plant

Registration with International EPC players

FY’ 21 & FY’22 Time to ripe the benefits

• Major regulatory approval done

•

Established relations with 100 global EPC players

• Our International bidding pipeline of

28,000 million are at the highest level in company history, is a true testimony of our efforts

• We are at inflection juncture and targeting to grow exports geographies

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B U S I N E S S O U T L O O K

P E R F O R M A N C E O U T L O O K

Covid Lockdown impact is more of a Revenue deferment for us rather than revenue loss, None of our projects got cancelled neither faced any significant deferment.

Company expects to clock double digit annual revenue growth in FY’21 on back of strong pending execution of engineering contracts and strong polymer segment performance;

Expect good traction in International TL orders, While pending domestic TL ordering bids are expected to get awarded by Q4’21 / Q1’22

Focus on mechanisation and automation along with several cost reduction initiatives to further improve efficiency in operations and aid to stable margins

Implementation of TOC in both Engineering and Polymer business to significantly improve its working capital cycle and bottom-line profitability

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Fully Integrated In-House Research & Development Centre

Future Ready

F U T U R E R E A D Y

Skipper boasts of largest Tower & Monopole Load Testing Station in India, which is also one of the largest in the world.



Started Operations in the state of art Transmission Line Tower Testing Station is spread across 14 acres of land in Howrah, West Bengal commissioned in March’20.

 Approved and recognized by Dept. of Scientific and Industrial Research (DSIR), Govt. Of India.

 One of the largest Testing facilities of India and first of its kind in Eastern India

 Capable of Full scale load testing, a reliable tool for validating the structural design

 The facility is designed to Test all kinds of Lattice Towers, Monopoles & Guyed Towers with World

Class Technical Parameters

 Ultimate Destination for OHTL Contractors & Manufacturers for Prototype Testing

For the first time ever, all new large T&D projects in domestic markets comes along with Design and Load testing scope; Our new R&D centre will give us distinct advantage over competition.

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T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n

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T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n

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For any queries please contact:

Aditya Dujari (Investor Relations)

Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017

E-Mail: aditya.dujari@skipperlimited.com Tel: + 91 33 2289 2327/5731 Mobile: 9830806906

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