POWERINDIA

HITACHI lnspire the Next: January 24, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street G Block, Bandra-Kurla Complex, Bandra (E) Mumbai 400 001 Mumbai 400 051 (Atten: DCS Listing) (Atten: Manager Listing Department) Ref: BSE Scrip Code: 543187, NSE Scrip Symbol: POWERINDIA Dear Sirs, Subject: Analysts/Investors’ Presentation Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of presentation to be made during the conference call with Analysts/Investors as scheduled today i.e., January 24, 2024 for the information of the Stock Exchanges. The above information is also hosted on the website of the Company at https://www.hitachienergy.com/in/en/investor- relations Kindly take the same on your records. Thanking you, Yours faithfully, For Hitachi Energy India Limited Poovanna Ammatanda General Counsel and Company Secretary Encl: as above Hitachi Energy India Limited Registered and Corporate Office: 8th Floor, Brigade Opus, 70/401, Kodigehalli Main Road, Bengaluru – 560 092, Phone: 080 68473700 CIN: L31904KA2019PLC121597 www.hitachienergy.com/in @Hitachi Energy Q3FY24 Analyst Conference Call N Venu, Managing Director & CEO Hitachi Energy India Limited @Hitachi Energy 2024-01-24 © 2024 Hitachi Energy. All rights reserved. Important notices HITACHI lnspiTe the Next This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions, countries and industries that are major markets for Hitachi Energy India Limited (“Hitachi Energy India”). These expectations, estimates and projections are generally identifiable by statements containing words such as “expects,” “believes,” “estimates,” “targets,” “plans,” “outlook” or similar expressions. There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others: business risks associated with the volatile global economic environment and political conditions costs associated with compliance activities market acceptance of new products and services changes in governmental regulations and currency exchange rates, and such other factors as may be discussed from time to time in Hitachi Energy India’s filings with the Stock Exchanges and Securities and Exchange Board of India (SEBI), including its Annual Report. Although Hitachi Energy India believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. Further, Information shared herein inter-alia contains some key financials pertaining to Hitachi Energy India. Hitachi Energy India being a listed entity is obliged by law not to share the said information to any one (other than those who are involved in the process and who are bound by Insider Trading Regulation) unless and until the financials are considered and approved by Hitachi Energy India board and thereafter announced to stock exchanges as per the listing obligations entrusted upon Hitachi Energy India. Therefore, privy to this presentation should kindly ensure strict confidentiality of the information shared and discussed herein. . 2 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy License to operate – Safety HITACHI lnspiTe the Next Focus on employee well being; essential Safety Week - Do the right thing! Customer recognition, appreciation for life saving rules safety standards & practices MP POWER TRANSMISSION PACKAGE-II LIMITED House No.·5/1006, Near Nachiketa School, VIJay Nagar, Jabalpur 482002, Madhya Pradesh HSE Mail 10, fflPPllz018rrotM com Week Ref: MPPTP-II/HEIUKhaira/1107/20112023 Date: 20-11-2023 M/1Hiti,chiEnernlndi1Limited. Subjttt: ApprKiation letter for Good EHS Practice & Qua I D<!arSir, - This ,:Ne, u, immt'n,., plnsure to iUu<' th letter of appreciation le ~~~§~ijij~g~ru~~v~o m,int11inin11oodst.ind1rdsofqualityands.fetypr,cticesdurin1e•e Good st1nd11rds of quality ind Hlety prKtices were m11intained by t IC.h11ir1Sitt'by•doptin1qualitymt'UuruwithsincrreefforU. Thankfn1You. Youn faithfully, fa4 SibapraHdOas, ClusterHndProjec:tsSUbstation, MP Power Tran,mission Pllckace-11 Limited. MP POWEA TANSMISSION PACKAGE-II UMITEO l~lloo<,ACH, S...nt'9r.....,Nff1V10:iv-O...Cit'ol1,S.O.H;gtw.~.IO>c)d;yer.Mtnfll10od' Registered Office: C-105, Anand Nikctan, Ne Consistent engagement across all Promoting HSE behaviors that drive world-class Driving HSE culture along the energy value employees – shopfloor demonstrations, performance across all teams using multiple chain donation drives & life support training platforms, formats 3 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Sustainability 2030 – Waste flow mapping projects initiated at 5 locations HITACHI lnspiTe the Next Waste flow mapping projects initiated at 5 locations Other ongoing projects Why waste flow mapping projects? 1. Water conservation project (reuse of RO reject water) | 3.7% - 13.7 KL/month fresh- water reduction at Maneja ▪ Waste is an unwanted by-product of the value that we intend to create. 2. Rainwater harvesting and recharge pits | Survey completed at Halol, DBR – in Nov 23. ▪ Reducing waste and improving resource efficiency is a key part of 3. Elimination of paper cup – pilot competed at DBR | Eliminated 35,000/ paper reaching a sustainable future. cups/month ▪ If we manage waste properly, we can reduce and eliminate further 4. Roof top solar (609 KWp) installation | Opex model at DBR contribution to climate change, water and air pollution, which 5. Mandatory retrofitting of emission control device (RECD) on DG sets (11 No’s) | directly affects many ecosystems and species. Minimum 70% reduction of particulate matter Waste hierarchy Upcoming projects Reduce material use & waste 1. EV charging points –technical assessment & feasibility in progress at DBR ReuH products & materials 2. Wood waste -Identification of pilot projects i.e. reuse in packing MAI Repair products 3. Replacement of diesel operated fork-lift truck (FLT) with electric FLT Recycle materials 4. Metal waste –Pressure test on MS and Al tube for utilizing it in our own operation at DBR 5. Battery Energy Storage System: i-store as a backup of DG –DBR 4 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Indian economy paces itself for the democratic exercise Macro-economic snapshot Growth drivers remain intact and tracking upwards India GDP estimated to grow at 7.3% during FY 23-24: GoI RBI* holds interest rate in Dec meeting (6.5%) | Inflation increased to 5.6% in November largely attributed to recurring food price hikes. SBI's study shows individual’s weighted mean income has risen 3.7X during FY14-FY21 (₹3.1 lakhs to ₹11.6 lakhs ) India’s peak electricity demand is expected to reach 277 GW by 2027 and to 366 GW by 2032, up from 239.9 GW in September# Industry growth (IIP2) – IIP rises to 16 month high in October 14.0 9.4 9.4 9.0 8.0 6.9 6.4 5.3 5.0 4.0 IIP Mining Manufacturing Electricity Capital Goods 5 © 2024 Hitachi Energy. All rights reserved. *RBI : Reserve Bank of India 2-IIP – Index of Industrial Production | # Bloomberg Estimate I Internal Hitachi Energy Analysis | PIB.GOV.IN | CRISIL egnahC% HITACHlt lnspiTe the Nex Sector Trend 30 GW annually to be added to reach 290 GW solar target by 2030 60 Renewables 1st Wind offshore tenders announced – 7GW to be auctioned by FY24 Yr 35 TBCB projects offered in current FY. Transmission 2 HVDC projects to be awarded in next 12 months Revival of private CAPEX Industry Hydrogen, Steel, O&G and Cement have ■ Apr'22-Oct'22 ■ Apr'23 -Oct' 23 aggressive expansion plans. Metro, High-Speed Rail, Rail ~ Rail Electrification, Rolling stock Upgrade Doubling of capacity by 2025. ■ ~~~ Datacenters Investment from major players like AWS, Adani, NTT Discom upgradation & modernization. Distribution RDSS scheme @Hitachi Energy 360⁰ framework for collaborative energy transition HITACHI lnspiTe the Next G5 HVDC converter manufacturing for Thought leadership – India leading global Industry focused customer events – Mumbai infeed commences conversations datacenters in Zone West Nurturing our supply ecosystem - CEA recognition for industry training Global Board visit – interaction with Transformer channel partner meet initiatives; customer appreciation government, select customers & factory tour 6 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Completing steps towards energy transition for customers HITACHI lnspiTe the Next 220/33kV AIS Substation for 300MW hybrid 400 kV GIS, 400/220kV 500 MVA ICT, BALCO 230KV/11kV GIS 2X75MVA Trfo Substation generation (solar+wind) at Pavagada for CTRLS DC, Chennai 7 © 2024 Hitachi Energy. All rights reserved. Order execution, navigating external supply chain risks HITACHI drive revenue growth lnspiTe the Next Q3FY24 Growth Growth Key order wins (INR crore) YoY QoQ ▪ Renewables: 220kV& 400kV AIS S/S t Orders 1,235.0 +1% -29.3%* ▪ Chennai Metro Rail: Dry and Power t Transformers Revenue 1,276.4 +22.6% +3.9% ▪ Hydropower: 9 X400kV GIS & 400kV t PBT 33.8 +152.5% +4.4% reactors t ▪ Multiple state utility: 4 X 765kV PAT 23.0 +401.5% -7.2% Transformers; 9X400kV GIS OBL 7,552 ▪ Datacenter: 2X 220kV GIS Substations ▪ Export orders for renewables & utilities in Africa, Middle East & Order backlog provides revenue visibility for the coming quarters Europe: 220kV & 110kv Transformer; 330/145kV LTB/IT/DS; 16 X 66kV GIS 8 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy *In Q2FY24 STATCOM order booked – 328 Cr Transmission orders stable, strong growth in Renewables, Datacenters Renewables (Solar & Wind) Transmission Datacenters Railways & Metros 500GW Renewables by 2030 Green energy corridors 5G launched in India Indian Rail target net zero by 2030 Data Localization Regulation 2 X 25kV Electrification of High- Datacenter Policies Density Corridors Growth Growth Growth Growth +54% +1% +92% -3% SEGMENTS SECTORS CHANNELS 85% 79% 62% 64% 56% 50% 38% 22% 24% 22% 20% 14% 10% 8% 5% 12% 7% 14% 6% 4% Products Projects Services Utilities Industries Transport & Infra Direct End EPC OEM Distributor Q3 23 Q3 22 User 9 © 2024 Hitachi Energy. All rights reserved. Source – ATLAS with records manually corrected stnemgeS yeK xiM redrO HITACHI lnspire the Nexl - - - - - I - ■ ■ @Hitachi Energy Long-term growth levers – service & exports HITACHI lnspiTe the Next Exports orders up +61% Yoy • 3 X 80 MVA 220kV and 3 X 80 MVA 110kV transformers order from Eiffage France for MCA Senegal project • 330kV/145kV LTB/DS/IT order from Prime Group Azerbaijan • 16 X 66kV GIS order from REE Spain • 6 X 66kV GIS order from Portugal Service orders up 71% YoY • 400 kV RIP Bushings Order from PGCIL • 11kV Busbar Retrofit Order from Reliance • Repair of 63 MVA Transformer for SKS Power Generation • Digitalization of 2 x 75 MVA, 220 kV Transformer for STT Data Center • Training Order from STELCO, Maldives • Commissioned 8 units of CSD for Qatar • Successful repair of PPGCL - 45 MVA transformer 10 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Financial performance – Profit & Loss Statement HITACHI lnspiTe the Next Performance indicator (INR crore) Q3FY24 Q3FY22 YoY% Q2FY24 QoQ% Orders 1,235.0 1,222.1 1.1% 1,747.1 -29.3% Revenue 1,276.4 1,041.0 22.6% 1,228.2 3.9% Profit Before Tax (PBT) 33.8 13.4 152.5% 32.4 4.4% PBT % 2.6% 1.3% 2.6% Profit After Tax (PAT) 23.0 4.6 401.5% 24.7 -7.2% PAT % 1.8% 0.4% 2.0% Operational EBITA 58.4 29.9 95.2% 42.7 37.0% Operational EBITA% 4.6% 2.9% 3.5% Operational EBITDA 81.0 49.9 62.2% 65.0 24.6% Operational EBITDA% 6.3% 4.8% 5.3% Order backlog at INR 7,552.3 crore providing revenue visibility of ~22 months 11 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Quarterly performance HITACHI lnspiTe the Next INR Crores Particulars 3 months ended 3 months ended 3 months ended 31/12/2023 30/09/2023 31/12/2022 Crs % Crs % Crs % Income Revenue from operations 1 ,274.2 1 00.0 1 ,228.0 1 00.0 1 ,033.9 1 00.0 Other income 2.2 0.0 0.2 0.0 7.1 0.0 Total income 1 ,276.4 1 00.0 1 ,228.2 1 00.0 1 ,041.0 1 00.0 Expenses Material cost 8 27.2 64.8 7 95.9 64.8 6 63.9 63.8 Personnel expenses 121.4 9.5 116.6 9.5 100.3 9.6 Other expenses 247.8 19.4 249.5 20.3 226.0 21.7 Exchange and commodity variance 9.8 0.8 0.6 0.0 4.3 0.4 Depreciation 22.7 1.8 22.5 1.8 20.2 1.9 Interest 13.7 1.1 10.7 0.9 13.0 1.3 Total expenses 1 ,242.6 97.4 1 ,195.8 97.4 1 ,027.7 98.7 Profit before tax 3 3.8 2.6 3 2.4 2.6 1 3.4 1.3 Tax expenses 10.8 0.8 7.6 0.6 8.8 0.8 Profit for the period 2 3.0 1.8 2 4.7 2.0 4 .6 0.4 12 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Related Party Transaction HITACHI lnspiTe the Next Based on recommendation of the Audit Committee, the Board of Directors have considered and approved Issuance of Postal Ballot Notice for approval of Material Related Party Transactions with Hitachi Energy Sweden AB, Västerås, Sweden for an aggregate value of up to INR 700 crores during FY23-24 Particulars FY 23-24 Hitachi Energy SwedenAB, Västerås, Sweden INR 700 Crores • Sale or purchaseof product, component, system • Renderingand receivingof services, In the ordinary course business and at arms length basis 13 © 2024 Hitachi Energy. All rights reserved. @Hitachi Energy Priorities for 2024 HITACHI lnspiTe the Next • Maintain leadership in core segments Markets • Shift center of gravity to include Service, Export & Digital • Harness new segments and markets • Operational excellence to improve productivity, quality Business • Supply chain management • Drive cash focus • Leverage large backlog for revenue & profitability accretion • Reinforce safety culture Function • Upskill & cross-skill talent for agile energy transition • ERP migration project (REIWA) Build and deliver sustainable shareholder value 14 © 2024 Hitachi Energy. All rights reserved.