KUANTUM

Kuantuln Papers Ltd Pooer MoteTs 1he KPLiSEs/EP 17.08.2021 BSE Limited National Stock Exchange ofIndia Limited Phiroze Jeejeebhoy Towers Exchange Plaza DaJal Street Plot No. CIl, G Block, Mumbai 400 001 Bandra-Kurla Complex Scrip Code: 532937 Bandra (East) Scrip ID: KUANTUM Mumbai 400 051 Trading Symbol: KUANTUM Reg: Earnings Presentation - Disclosure under Regulation 30 of Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby attach a copy of Earnings Presentation for the quarter ended 30 June 2021 for your information and record purposes. The said presentation will thereafter be uploaded on the Company's website at www.kuantun1papers.com Kindly take the same on record. For Kuantum Papers Ltd ~' (Vivek Trehan) Company Secretary Encl:aJa CorpOffice WIA FFTowerA GodrejEternia Plot70 IndlArea1Chandigarh 160002 RegdOffIce&Works SallaKhurd 144529 DisttHoshiarpur Punjab www.kuantumpapers.com kuantumcorp@kuantumpapers.com CIN•L21012PBl997PlC035243 Executive Summary • Kuantum Papers Ltd., is one of the largest Agro based paper FY21 FINANCIALS manufacturers in India and is committed to manufacturing (INR Mn) wood free, high quality maplitho, creamwove, copier and specialtypaper. Revenues • The company has an Integrated manufacturing facility of INR 4,039 148,500 MTPA with4 Paper machines, Agro andWoodbased pulping, Co-generation Power plant & Chemical Recovery EBITDA Plant. INR 293 • Kuantum’s products are extensively used in the printing of books, notebooks, annual reports, directories, envelopes, EBITDA Margin diaries,calendars,computerandofficestationery. ` 7.25% • Ithasastronglong-lastingpanIndiadealershipnetwork of 90+ dealers from which it undertakes order based PAT manufacturing. • The company caters to marquee clients like INR (127) Wal-Mart, McGraw Hill, Kukoyo(Mumbai), Thomson, Lotus Global, Navneet Publications, Oxford PAT Margin UniversityPress,Macmillanamongstothers. NA • Kuantum maintains a Social Farm forestry EPS programme, thus contributing to future source of woodchips. INR (1.46) 2 About Kuantum Papers • Incorporated in 1980, Kuantum Papers started itscommercial operations in an economically Operational Revenue (INR Mn) & EBITDA backwardvillageofHoshiarpur,Punjab. Margin • They started their commercial operations with 30 TPD and are currently operating at 450 7,143 25.00% 7,935 7,447 TPD,aftercompletionoftheirbackwardintegrationprojectinMarch’21. 6,427 20.00% 20.65% 19.61% • Due to its location in the foothills of the Shivalik range, Kuantum Papers has been 18.14% 15.00% strategically utilizing agro residues like wheat straw, sarkanda and bagasse along with wood 15.91% 4,039 10.00% chips,veneerwaste&bambootomakehighqualitypaper. 1,475 7.25% 10.51% 5.00% • The company’s fully integrated manufacturing facility spread across 259 acres helps it gain 0.00% advantageintermsofbetteroperationalefficiencyandhigherproductoffering. FY17 FY18 FY19 FY20 FY21 Q1-FY22 • Kuantum’s product offerings include maplitho, creamwove, copier paper and value-added specialty products like Azurelaid papers, parchment paper, cartridge paper, ledger paper, Production MT stiffnerpaperandcolouredpaperwithaGSMrangeof48–180GSM. • The company’s major area of operations lie within 1,000 kms of the plant in Northern and 1,25,618 Eastern India with a strong dealership network, many of whom have been associated with 1,15,997 1,27,756 1,26,633 Kuantumsince3generations. 82,531 • The company manufacturers its products on an order-based system from its 90+ dealer network. 30,554 • The company’s social farm forestry program includes wood plantations of around 1,500 hectares. Post their maturity these plantations will beused as wood source for their facility FY17 FY18 FY19 FY20 FY21 Q1-FY22 hencecontributingtobettermarginperformance. 3 Key Strengths Pan India presence with an extensive network of Cost savings through executed Backward 90+dealers Integration Project will lead to improved EBITDA marginsintherangeof28-30% Long standing relationship with dealers, many Improved infrastructure of paper machines in associatedwiththecompanyforover3decades ordertobemorecosteffective Largest product Portfolio in the Paper Industry Located near densely populated Northern Region covering Maplitho, Creamwove, Copier and including NCR, a higher paper consumption SpecialtyPaper market Strategic location in Punjab with abundant Successful in creating a branded portfolio of availability of raw materials such as Wheat Straw, products Sarkanda, Kana Grass & Bagasse, allows us to get steadysuppliesatstableprices Ability to command a price premium in the range of 5-7% over our competitors due to better quality Raw Materials are perfect substitutes of each ofproductsandsuperiormarketorientation other, so we are not dependent on any single one throughouttheyear Marketbasedsalesratherthangovernmentorders. Customers are delighted to deal with us rather Future source of wood chips: Social farm forestry than our competitors due to regular and timely programme which will serve us for our future supplies sourcein-housewoodpulprequirement 4 Current Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Co-Gen Power Plant Segment • Total Capacity: 380 TPD • Total capacity: 450 TPD • Total Capacity: 700 Solids • Turbines: Total 38 MW • Agro based pulp: 200 TPD • Machine 1 -30 TPD TPD ➢ New : 20 MW & 8 MW Capacity • Wood pulp: 180 TPD • Machine 2 -35 TPD • New CRP : 500 Solids TPD ➢ Existing Turbines : 10 MW • Machine 3 - 115 TPD • Existing CRP : 200 Solids • Boilers: Total 190 TPH • Machine 4 - 270 TPD TPD ➢ New : 130 TPH ➢ Existing : 60 TPH • Installed new Chemical • Kuantum combines agro pulp • Thedifferentconfigurations • Installed two new turbines Recovery Plant of 500 TPD along with wood pulp and of the four paper machines of 20 MW and 8 MW from from Andritz for the imported pulp in order to allow Kuantum to Siemens,therebytakingthe treatment of Black Liquor produce better quality fibre for manufacture a wide variety totalcapacityto38MW. produced in the pulping paperproduction of surface-sized, non • A new Boiler of 130 TPH process surface-sized and value- from ISGEC has been • Caustic soda, which is a Description addedspecialtyproducts installed making the total costly chemical used in the capacity190TPH. pulping process is • Power costs are expected recovered through this to come down substantially plantleadingtoreductionin in the range of INR 2.3-2.5 operational cost and thus perunit marginimprovement 5 Future Growth Strategy Strengthening of Plant through Project Upgradation across Wood Pulping, CRP & Co-Generation Power plant Focusing on cost optimization and quality enhancement Creating a portfolio of higher proportion of value added specialty products from additional pulping efficiency achieved 6 Q1-FY22 Financial & Operational Highlights Q1-FY22 Financial Highlights Q1-FY22 Operational Highlights INR 1,475 Mn INR 155 Mn • The Backward Integration project was completed in March 2021, and the cost benefits started to flow in post the period Income from Operations EBITDA oftrailcommissioning • However, operations were impacted on account of the 2nd waveofCovid-19resultinginmuteddemand INR (54) Mn INR (0.62)/ share • The company executed a strategic shift in business to tap the Net Profit Diluted EPS (Not Annualized) exportmarkets,thathelpedpickupsalesduringthequarter • With improved levels of vaccination, educational institutions andofficesarebeingopenedupbystatesinaphasedmanner whichisexpectedtorevivedomesticdemandbyendofQ2 8 Q1-FY22 Income Statement Particulars(INR Mn) Q1-FY22 Q1-FY21 Y-o-Y Q4-FY21 Q-o-Q Operational Income 1,475 476 NA 1,691 (12.8%) Total Expenses 1,320 578 NA 1,412 (6.5%) EBITDA 155 (102) NA 279 NA EBITDA Margins (%) 10.51% NA NA 16.50% NA Other Income 15 6 NA 10 52.0% Depreciation 121 84 44.1% 96 26.0% Finance Cost 170 76 NA 43 NA Exceptional Item - - - 86 - PBT (121) (256) NA 64 NA Tax (66) (93) NA (40) NA Profit After tax (54) (163) NA 104 NA PAT Margins (%) NA NA NA 6.15% NA Other Comprehensive Income - - - 5 - Total Comprehensive Income (54) (163) NA 109 NA Diluted EPS (INR) (0.62) (1.86) NA 1.19 NA 10 Income Statement Particulars(INR Mn) FY20 FY21 Q1-FY22 Operational Income 7,447 4,039 1,475 Total Expenses 6,262 3,746 1,320 EBITDA 1,185 293 155 EBITDA Margins (%) 15.91% 7.25% 10.51% Other Income 88 100 15 Depreciation 317 348 121 Finance Cost 304 277 170 Exceptional Item - 86 - PBT 652 (318) (121) Tax (66) (191) (66) Profit After tax 718 (127) (54) PAT Margins (%) 9.64% NA NA Other Comprehensive Income (1) 4 - Total Comprehensive Income 717 (123) (54) Diluted EPS (INR) 8.23 (1.46) (0.62) 11 Balance sheet Assets (INR Mn) FY20 FY21 Equity & Liabilities (INR Mn) FY20 FY21 Non-current assets Equity Equity share capital 87 87 Property, plant and equipment 10,201 14,263 Other equity 8,230 8,085 Capital work-in-progress 3,096 205 Total equity 8,317 8,172 Investment property 79 78 Liabilities Other intangible assets 55 17 Non-current liabilities Financial assets Financial liabilities • Loans 40 40 • Borrowings 4,683 6,137 • Other financial assets 52 40 • Other financial liabilities 163 169 Income tax assets (net) - 3 Provisions 11 12 Deferred tax liabilities (net) 272 84 Other non-current assets 178 7 Deferred income 55 50 Total non-current assets 13,701 14,653 Total non-current liabilities 5,184 6,452 Current assets Current liabilities Inventories 924 524 Financial liabilities Financial assets • Borrowings 620 603 • Trade receivable 143 331 • Trade payables 279 448 • Cash and Cash equivalents 5 5 • Other financial liabilities 1,038 425 Other current liabilities 39 35 • Other bank balances 190 157 Provisions 3 3 • Loans 5 10 Deferred income 4 5 • Others financial assets 72 39 Current tax liabilities (net) 10 - Other current assets 454 424 Total current liabilities 1,993 1,519 Total current assets 1,793 1,490 Total liabilities 7,177 7,971 Total assets 15,494 16,143 Total equity and liabilities 15,494 16,143 12 Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 593 729 779 718 10.00% 6,427 7,143 7,935 7,447 1,166 1,475 1,556 1,185 3 3 0 5 . . 0 0 0 0 % % 9.23% 10.21% 9.82% 9.64% 25.00% 5.00% 20.65% 19.61% 4,039 20.00% 15.91% 18.14% 293 15.00% 1,475 155 0.00% 7.25% 10.00% 10.51% (127) (54) 5.00% FY17 FY18 FY19 FY20 FY21 Q1-FY22 (3.69%) FY17 FY18 FY19 FY20 FY21 Q1-FY22 0.00% (3.14%) (5.00%) FY17 FY18 FY19 FY20 FY21 Q1-FY22 Net Worth (INR Mn) Cash Conversion Cycle Net Debt to Equity 57 8,317 8,172 7,666 6,914 43 43 40 6,207 37 0.81 0.61 0.32 0.34 0.37 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 13 Capital Market Data 100% 80% 60% 40% 20% 0% -20% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Kuantum Sensex Price Data (30thJune,2021) INR Shareholding Pattern as on 30thJune, 2021 Face Value 1.0 Public, Market Price 76.4 29.70% 52 Week H/L 88.9 / 38.3 Market Cap (Mn) 6,662.6 Promoters, 70.30% Equity Shares Outstanding (Mn) 87.3 1 Year Avg Trading Volume (‘000) 56.4 14 Disclaimer Norepresentationorwarranty,expressorimplied,ismadeasto,andnorelianceshouldbeplacedon,thefairness,accuracy,completenessorcorrectnessoftheinformationoropinions containedinthispresentation.Suchinformationandopinionsareinalleventsnotcurrentafterthedateofthispresentation.Certainstatementsmadeinthispresentationmaynotbe based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Kuantum PapersLimited (“Company”or “KuantumPapersLtd.”),whichareexpressedingoodfaithandintheiropinionreasonable,includingthoserelatingtotheCompany’sgeneralbusinessplansandstrategy, itsfuturefinancialconditionandgrowthprospectsandfuturedevelopmentsinitsindustryanditscompetitiveandregulatoryenvironment. Forward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactors,whichmaycausetheactualresults,financialcondition,performanceorachievementsofthe Companyorindustryresultstodiffermateriallyfromtheresults,financialcondition,performanceorachievementsexpressedorimpliedbysuchforward-lookingstatements,including futurechangesordevelopmentsintheCompany’sbusiness,itscompetitiveenvironmentandpolitical,economic,legalandsocialconditions.Further,pastperformanceisnotnecessarily indicativeoffutureresults.Giventheserisks,uncertaintiesandotherfactors,viewersofthispresentationarecautionednottoplaceunduerelianceontheseforward-lookingstatements. TheCompanydisclaimsanyobligationtoupdatetheseforward-lookingstatementstoreflectfutureeventsordevelopments. Thispresentationisforgeneralinformationpurposesonly,withoutregardtoanyspecificobjectives,financialsituationsorinformationalneedsofanyparticularperson.Thispresentation doesnotconstituteanofferorinvitationtopurchaseorsubscribeforanysecuritiesinanyjurisdiction,includingtheUnitedStates.Nopartofitshouldformthebasisoforberelieduponin connectionwithanyinvestmentdecisionoranycontractorcommitmenttopurchaseorsubscribeforanysecurities.NoneofoursecuritiesmaybeofferedorsoldintheUnitedStates, withoutregistrationundertheU.S.SecuritiesActof1933,asamended,orpursuanttoanexemptionfromregistrationtherefrom. Thispresentationisconfidentialandmaynotbecopiedordisseminated,inwholeorinpart,andinanymanner. ValoremAdvisorsDisclaimer: ValoremAdvisorsisanIndependentInvestorRelationsManagementServicecompany.ThisPresentationhasbeenpreparedbyValoremAdvisorsbasedoninformationanddatawhichthe Companyconsidersreliable,butValoremAdvisorsandtheCompanymakesnorepresentationorwarranty,expressorimplied,whatsoever,andnorelianceshallbeplacedon,thetruth, accuracy,completeness,fairnessandreasonablenessofthecontentsofthisPresentation.ThisPresentationmaynotbeallinclusiveandmaynotcontainalloftheinformationthatyou mayconsidermaterial.Anyliabilityinrespectofthecontentsof,oranyomissionfrom,thisPresentationisexpresslyexcluded.ValoremAdvisorsalsoherebycertifiesthatthedirectorsor employeesofValoremAdvisorsdonotownanystockinpersonalorcompanycapacityoftheCompanyunderreview. ForfurtherinformationpleasecontactourInvestorRelationsRepresentatives: Mr.AnujSonpal ValoremAdvisors Tel:+91-22-4903-9500 Email:kuantum@valoremadvisors.com 15