SKIPPER

S KIPPER Date: 13 November 2019 The Manager The Manager National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Dalai Street Plot No. C-1, Block-G Mumbai- 400 001 Bandra Kuria Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Name- SKIPPER / BSE Scrip Code- 538562 Re: Investors Presentation Dear Sir, We are forwarding herewith Investors Presentation for the quarter ended 30 September 2019. 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, Loudon Street, 1st Floor, Kolkata - 700 017 CIN L40104WB1981 PLC033408 Phone 033 2289 2327 / 5731 / 5732, Fax 033 2289 5733 Email mail@skipperlimited corn, Website www skipperlimited corn Q2 & H1 PERFORMANCE, 2019 - 20 SKIPPER LIMITED INVESTOR PRESENTATION Broad-basing the pyramid SKIPPER LIMITED INVESTOR PRESENTATION About Us W H O W E A R E Skipper Limited is India’s largest and world's most competitive integrated transmission tower manufacturing company 3 K E Y FAC TS • Flagship company of • Four Power Grid • Widely respected the S.K. Bansal Group Corporation of India- player; awarded Largest (incorporated 1981). approved transmission Tower Supplier Award by tower and pole Power Grid for 3rd • Angle rolling, tower, manufacturing plants consecutive year accessories and fastener (combined engineering manufacture coupled • Awarded Best Industry capacity 300,000 MTPA) with EPC line in Water Resources construction • Among the most sector by Central Board effective knowledge of Irrigation and Power. • One of India’s largest pools in the sector and fastest growing comprising 2,450+ polymer pipes & fittings members companies 4 SKIPPER LIMITED INVESTOR PRESENTATION Key Management B OA R D O F D IR EC TO RS – W H O LE T IME Sajan Kumar Bansal Sharan Bansal Devesh Bansal Siddharth Bansal Yash Pall Jain Managing Director Director Director Director Director He is the driving force A mechanical With a Master's in Heading the company's He is a B.com graduate behind the company's engineering graduate, International Business first diversification into from Punjab University exponential growth since he is heading the Tower degree under his belt, non steel products, he is and has an experience the beginning of the new manufacturing and EPC he is heading the Tubes responsible for the of over 35 years in millennium. Under his business of the and Tubular products Polymer product various leading Industrial visionary leadership, the company. He's taken divisions of the manufacturing divisions. houses. In his corporate company has grown from the company to a company. He is also He has a degree in career he has held a single unit, single leadership position in responsible for the Entrepreneurship from several responsible and product manufacturer to this industry. group's upstream University of Illinois, USA. important portfolios. multi-unit, multi product expansions. manufacturing, ranging from Steel to Polymer. 6 B OA R D O F D IR EC TO RS - IN D E P E N D E N T Mr. Amit Kiran Deb Mrs. Mamta Binani Mr. Joginder Pal Dua Mr. Ashok Bhandari Sri Pramod Kumar Shah C.A IAS (Retd.), Immediate Past Ex CMD - Allahabad C. A. He is a Fellow Chairman President ICSl Bank He has profound member of the He has held several She is one of the He has been with experience in Institute of responsible and leading Practicing Allahabad Bank for 5 working with Chartered important portfolios Company years and retired as different industries. Accountants of in the West Bengal Secretary from Chairman of (B.I.F.R.). He has held India and has 35 State Government, Eastern India and He has held several various notable years of experience before finally retiring her professional portfolios in reputed positions in in practicing as Chief Secretary career includes 17 banking different sectors accountancy with and Tourism years of experience organizations and and finally retired an expertise in the Secretary. He has in corporate was on the as the CFO in area of internal profound consultation & governing board of Shree Cement audit. He has knowledge and advisory. several education Limited, a B.G. graduated with a experience in institutions. Bangur Company. Bachelor's Degree in Commerce from various industries. Calcutta University. 7 P RO D U C T O FFE R IN G S SKIPPER: ONE - STOP SOLUTION PROV ID ER Engineering products Polymer products Infrastructure projects Capacity: 300,000 MTPA Capacity: 51,000 MTPA MI SS•I TOraNns mission Line EPC • Power Transmission Tower • UPVC Pipes • Railway Electrification EPC • Power Distribution Poles • CPVC Pipes • Underground Utility laying • Monopoles • SWR Pipes by HDD • MS & High Tensile Angles • HDPE Pipes • Solar Structures • Fittings • Fasteners • Tower Accessories • Railway Structures Highlights Highlights Highlights Positioned as one of the world's • Only polymer pipe company in • Forward integration activity leading transmission tower India to implement TOC in its • Aimed at high-margin projects manufacturer; largest in India operations Revenues Revenues Revenues (FY’19) (FY’19) (FY’19) Rs16,452mn Rs1,598mn Rs 658mn FO OT P R IN TS G LOBAL P RESEN CE SOUTH AMERICA Peru, Colombia, Chile, Paraguay, Panama EUROPE UK, Germany, Spain AFRICA Kenya, Egypt, Ghana, Nigeria, Zambia, Sierra Leone Guinea, South Africa, Botswana, Burundi, Angola MIDDLE EAST Jordan, Saudi Arabia, UAE SOUTH AND SOUTH EAST ASIA Nepal, Bangladesh, Sri Lanka, Indonesia, Philippines, Malaysia AUSTRALIA SKIPPER LIMITED Performance Update Q2 & H1 FY’20 Update B U S IN ES S R E P O RT CA R D F in an cial Performan ce Q 2 & H1 F Y ’2 0 Rs in Mn Sl Profit & Loss Summary Q2 FY’20 Q2 FY’19 H1 FY’20 H1 FY’19 1 Revenues 3,132.5 5,239.6 6,518.2 10,026.6 2 Operating EBITDA (without Forex) 356.6 534.6 749.9 1,043.0 % of Revenue 11.4% 10.2% 11.5% 10.4% 3 Forex Gain / (Loss) (11.0) (146.6) 22.2 (205.3) 4 Reported EBITDA (2+3) 345.6 388.0 772.1 837.8 % of Revenue 11.0% 7.4% 11.8% 8.4% 5 Depreciation 94.9 96.6 188.4 211.8 6 Interest Expenses 232.1 256.5 447.7 530.5 7 Other Income 1.6 3.4 4.3 6.6 8 Profit Before Tax (4-5-6+7) 20.3 38.3 140.4 102.1 9 Tax 6.1 13.4 44.0 32.2 10 Profit After Tax (8-9) 14.2 24.9 96.4 69.9 11 P E FRO R MACE H IG H LIG H TS Performance Update Q2 & H1 FY’20 Revenue impacted on account of –  Consciously slowed down supplies to the customer unwilling to give secured payment terms  Considering the liquidity situation in the market, Limited our credit risk exposure across our customers ; at this stage we find it more prudent to not chase growth in revenue at the cost of financial discipline.  Lack of short term orders in market  Structural changes undergoing implementation in Polymer Segment Management ideology of not chasing growth at the cost of financial discipline will be maintained and adhered. 12 P E FRO R MACE H IG H LIG H TS Performance Update Operational Performance Highlights  Stand Alone operating EBITDA margins improved to 11.5% in spite of lower sales; The margins of engineering business are back to their normal historical range of 13%.  Stable raw material prices and corrective steps undertaken to reduce overhead and fixed costs leaded to improved margin performance ; Stronger expected execution in our Engineering business going forth will further boost its performance.  Productivity and cost reduction initiatives at the plant and site level are expected to further improve efficiency in operations and aid to stable margins  Actively pursuing projects worth Rs 2,950 crore on international front and about Rs 1,020 Crores on the Domestic front, which are at the highest level in company history. 13 S EG ME N T R E P O RT Se gme nt Pe rfo rman c e Q2 & H 1F Y ’ 20 Q2 Q2 H1 H1 Infra Segment Financial Summary Polymer FY’20 FY’19 FY’20 FY’19 6% 8% Net revenue 2,643.7 4,776.1 5,576.0 8,817.0 Engg. EBIDTA (w/o forex) 345.1 526.5 725.1 1,004.6 Products % of Revenue 13.1% 11.0% 13.0% 11.4% Net revenue 301.1 359.0 541.0 919.9 Polymer EBIDTA (w/o forex) 8.4 5.9 12.9 12.4 products % of Revenue 2.8% 1.6% 2.4% 1.3% Net revenue 187.7 104.5 401.2 289.7 Engg Infra projects EBIDTA (w/o forex) 3.1 2.2 11.9 26.0 86% % of Revenue 1.7% 2.1% 3.0% 9.0% Net revenue 3,132.5 5,239.6 6,518.2 10,026.6 Total EBIDTA (w/o forex) 356.6 534.6 749.9 1,043.0 Revenue Mix – H1 FY’20 % of Revenue 11.4% 10.2% 11.5% 10.4% Note: Segment EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of sales in their respective segment 14 IMP ROV E ME N T T R E N D S Op. EBITDA Margin (without Forex) 20.0% 13.3% 12.9% 13.1% 11.8% 11.0% 12.2% 10.0% 11.6% 11.4% 10.6% 10.2% 7.0% 6.2% 0.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1 Fy'20 Q2 Fy'20 Engineering Stand Alone • Engineering & Stand Alone EBITDA margin are back to its normal range of 13% & 12 % respectively , Clocked the desired range for past 3 consecutive quarters. • Improved margin performance despite of lower sales in Q2 & H1 FY’20 ; Corrective steps undertaken to reduce fixed cost, Stable Raw material prices and better operational efficiencies resulted in such improvement. • Margins to get better with expected increase in Engineering execution on both domestic and international front going forth. Note: Engineering EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of its sales 15 CA P ITA L STAT U S Debt Details Rs in Mn 30.09.2019 30.09.2018 Increase / (Decrease) Gross Debt 6,096 6,551 (455) Net Debt 5,982 6,351 (369) Leverage Ratio (X) Long Term Debt Equity Ratio 0.27 0.32 (0.05) Gross Debt Equity Ratio 0.93 1.05 (0.12) • Half year Interest expenses down by 16% in compare to previous year period • Focus continues on Balance sheet consolidation ; Implementation of TOC in both Engineering & Polymer business to significantly improve the working capital cycle and bottom-line profitability 16 O R D E R B O O K P IE En gin e ering P ro d u c ts – Ord e r Bo o k Co mp o s ition – Se p 2019 Total Order Book T&D Order Book Rs 2,380 Crores Rs 2,058 Crores 30% 20% 67% 47% 23% 13% Domestic T&D Domestic - Telecom & Railways Exports PGCIL SEB & Private Export Order Book to Sales stands at 1.5 X 17 O R D E R IN FLOWS & CO MP O S IT IO N • Secured new orders of Rs 667 crore in Q2 FY’20 for engineering products supplies from PGCIL, SEB’s, Railways and for supplies across various export markets. • YTD Engineering Order Intake of Rs 852 crores ; Share of Non T&D products at 13% in overall order book • T&D Order book well diversified between Power Grid, Domestic SEB and International Projects Strong Bidding Pipeline of 3,970 Crores as on 30th Sep 2019; H1 FY’20 Order Inflow Total – 852 Crores International – 2,950 Cr & Domestic - 1,020 Cr The company expects Ordering & Execution to gain pace in the second half of the year with increased participation opportunities from Power Grid, SEB, TBCB projects, Exports and Infrastructure push in North East & East India. 73%  Growing global competiveness; Focusing on international markets to drive the ordering growth  EPC tenders for some of the recently awarded TBCB projects are to get finalised by this quarter. 22%  Plans worth of Rs 50,000 crores of Green Energy corridor related projects to come up for bidding from next year will provide a big boost to the domestic transmission industry 5% T&D Domestic T&D - Export  Strong order traction from Domestic Railway; Non T&D share of business Railways & Telecom will continue to grow. 18 B U S IN ES S O U T LO O K P ERFORMANCE OUT LOOK Rebound expected in domestic T&D action both on Ordering and Execution front from next quarter onwards Focus on strengthening the international T&D order book ; Positioned to grow exports to 40% of revenue in next 2 years Desired EBITDA margin focus of 12-13% in FY’20 Implementation of TOC in both Engineering and Polymer business to significantly improve its working capital cycle and bottom-line profitability Volume-value play to drive shareholder value 19 B U S IN ES S MA N T R A T HE B I G M ES SAGE Profitability in Conscious Sectoral Skipper Progressive a downturn is slowing down: consolidation opportunity- broadbasing a validation of Not chase to lead to next ready to strengthen Skipper’s growth at the rebound; through re- revenues and business cost of opportunity to navigated margins – model financial switch sectors business overall discipline based on model quality of margin business positive 20 W H AT IS B ROA D BA S IN G T H E PYR A MID ? EN G IN EERIN G P ROD UC TS BUSIN ESS 1 2 Broadbasing the customer mix Broadbasing the number of within each sector (government sectors addressed and non-government) Riding the growth of some fast- growing segments into the long-term Riding the inflection point within like telecom and railways India where the power transmission sector opened to private players Broadbasing the pyramid Broadbasing the Broadbasing the countries number of customers of our presence Addressing the needs of a Entering new geographies to reasonable number of the large derisk from an excessive and a large number of small fast dependence on one or few growing companies economies 3 4 22 W H Y B ROA D BA S IN G T H E PYR A MID ? W H Y W E A RE BROA D BA S IN G To be able to To strengthen capitalise on To strengthen margins; some sectoral upturns competitiveness; sectors promise with speed; last person lower working faster off the standing capital cycle blocks To report a To transform To progress lower sectoral from an Indian towards any- beta; smooth the company into a market business performance global player sustainability curves 23 ST IMU LU S B E H IN D B ROA D BA S IN G T H E PYR A MID ? W H AT W ILL FACILITATE OU R BROA D BA S IN G Deep knowledge capital on product manufacture, quality standards and certifications Fungible manufacturing capacity (from one product to another with no capex); only integrated manufacturer in the sector Strategic location; proximity to raw material sources; freight competitive Existing presence in 30+ countries; relationships with 100+ global EPC players Progressively enhanced capacity utilisation, revenues and amortisaton economies Global quality certifications and customer approvals in place – a ready foundation waiting to be scaled Ability to enter segments with low capital cost (strengthening competitiveness from day one) Low long-term debt on the books 24 K E Y D R IV E RS O F T H E ID EA TH E IMPAC T OF TH E BROAD BASIN G : FOUR D RIV ERS Building Focus on Focus on telecom credential and Increased projects coming out and railways relationship with bidding for of PGCIL, SEB and sectors (domestic global EPC players projects private transmission sectoral to gain presence promising players (Domestic diversification) in international superior IRR T&D) market OrOdredre bro booko bkr beraeka-uk-pu aps a pse pre sre sgemgmenetns t s T&D order book break-up as per End user 6% 7% 23% 47% 30% 87% PGCIL SEB & Others Exports T&D Telecom Railways As on June, FY20 As on June, FY20 25 BROAD BASIN G WOV EN AROUN D F IN AN CIAL D ISCIP LIN E Driven by the Bids for projects Believes that no Consistent philosophy of that meet basic IRR business is better resistance to chasing profitable criteria than bad volumes over growth business profits Can temporarily Geographic Invested in pre-bid and selectively diversification team capabilities; sacrifice margins for (global) dictated by attractive strike rate a larger strategic large volumes, of around 50 % market entry and superior realisations growth and quicker receivables 26 SKIPPER LIMITED INVESTOR PRESENTATION Future Ready E XP LO R IN G N E W G EO G R A P H IES BROADBASING TO REDUCE DOMESTIC DEPENDENCE • Opportunity-ready: Certified by prominent International certifications international organizations for confidence- Certification Country enhancing certifications CFE/LAPEM Mexico • Established traction: Working with over 100 CWB Canada & USA Global EPC player ; Enlisted 11 prominent DEWA Dubai customers in two years ROHAS Malaysia CE CERTIFICATION Europe • Creditable beginning: first-time enquiries ACHILLES/STATNET Nordics from South Korea, Uruguay, Paraguay, Saudi Electric Company Saudi Arabia Romania, Croatia, Mexico, Panama, Poland, The Jordanian Electric Power Company Ltd Jordan Afghanistan, Russia, Australia and Nicaragua RETIE Colombia among others EETC Egypt BPC Bhutan • Optimistic outlook: Positioned to grow KETRACO Kenya exports to 40 % of revenues in next two year TCN Nigeria and to 50% in three years (15% today) NGCP Philippines • Competitiveness: Increasing cost of labour and capacity shut downs in China is making Indian players like us globally competitive • Visible brand: Participated in around 25 global exhibitions in two years to enhance visibility • 28 LEA D E RS H IP P O S IT IO N SKIP P ER IS CLEARLY P OISED TO BE IN TH E W IN N IN G SP OT IN TH E IN TERN ATION AL T& D SEC TOR • Skipper is the highest accredited manufacturers in India for supplying to global markets • Largest and lowest cost manufacturer out of India and one of the lowest globally • In between 2005 – 15 Skipper supported multiple Indian non integrated T&D EPC Contractors (holding major market share) with low cost reliable Transmission Tower supplies (Towers are almost 50% of the value of any project). • Currently replicating the same format in International markets with major International EPC contractors, helping them leverage their relations with the Utilities better • Increase in approvals such as CWB (North America), Lapem (Central America & Mexico), CE (Europe), DEWA (Middle east), Achilles (Nordic countries) and Sirim (South East Asia) which gives it better access to T&D business in these regions. Continuously increasing , Utility approval list with more key utilities in the European markets 29 G ROW IN G G LO BA L CO MP E T IT IV E N ES S SKIPPER CH IN ESE MAN UFAC TURERS WHAT MAKES US MORE COMPETITIVE Higher Price : Chinese manufacturers are almost 10-15% higher priced than Indian manufacturers, owing to un favorable currency and much higher labor costs. Limited Capacities to offer : Chinese manufacturers have cut capacities owing to pollution issues and the remaining capacity is tied up in their Belt – Road project so are quoting very long lead times. Reliability: More and more global utilities are interested to source from Indian manufacturers compared to Chinese due to regular quality issues over the years. 30 G ROW IN G G LO BA L CO MP E T IT IV E N ES S Considerable increase in Bidding Volumes from International T&D Sector Bidding Volumes 2017-18 H1 FY’20 Change T&D sector Rs in Cr Rs in Cr % International T&D 810 2,950 264% Domestic T&D 1,625 1,020 -37% Total 2,435 3,970 63% H1- FY’20 FY 2017-18 26% 33% 67% 74% Domestic T&D International T&D Domestic T&D International T&D These developments reinforce our belief of a significant turnaround in the international markets. 31 G LO BA L N E E D GLOBAL T&D INVESTMENT OPPORTUNITIES According to World Energy Outlook (WEO) 2015, a total of US$ 8.4 trillion investments are expected to flow in the global T&D investments between 2015 and 2040, averaging US$320 billion per year. 32 IN D IA STO RY T&D INDUSTRY OVERVIEW IN INDIA • Historical skew between generation and T&D asset creation; shortage of power evacuation capacity • Skew correction across the last decade: substantial increase in T&D capacity amounting to 345 GW as on September 2019 which is estimated to grow at a CAGR of 6.5% between 2018 and 2023. • Part of an overarching government agenda: one nation, one grid • National power grid backbone enabling regions of power surplus to feed regions of power deficit • Part of a long-term structural correction to maximise national resource use and create one consolidated market • This structural correction to widen and deepen: large room for India’s transmission network to grow • India Transmission capex estimated at INR 2.6 trillion (+49%) in the 13th Plan. 33 D O MEST IC O P P O RT U N IT IES STRONG OPPRTUNITY IN INDIA’S T&D SECTOR • Planned government transmission sector investment of Rs 2.6 lakh crore in FY17-22; estimated Total line Rs 1.3 lakh crore allocated for intra-state transmission capacity. SEBs and private players to capacity drive orders • Village electrification, railway electrification, enhanced public-private participation and Electricity for All by 2019 to drive sectoral rebound 11th Plan: • 175 GW renewable energy capacity addition targeted by 2022 – an unprecedented opportunity 2,57,481 CKM • Rs 50,000 cr Plus Green Corridor Projects (Lines being built in Western region catering to Renewable power sources) • Dedicated schemes of Rs 1.09 lakh cr to provide 24x7 power (rural and urban) • Unprecedented Rs 1 lakh cr allocated by Central government for national transmission grid 12th Plan: • Growing transmission focus with substantial line capacity addition from 11th Plan to 13th Plan 3,64,921 CKM • 100,000+ CKM transmission lines at 220 kV+ projected for 13th Plan • R-APDRP launched by Ministry of Power; upgradation of transmission and distribution network to reduce AT&T losses to 15% • Growing participation in tariff-based competitive bidding (TBCB) by Indian private sector giants 13th Plan: (Sterlite, Essel and Adani) creating multiple revenue engines 4,70,515 CKM • SAARC keen to develop robust transmission grid to enhance pan-sub-continental power trade • Growing popularity of monopoles 34 E XPEC T E D T RA NSMI SSI O N SYST E M A DDI T I O N DURI NG 2 0 1 7 - 2 2 Transmission line Addition during 2017-18 Planned addition during Balance capacity to be As of March 2017 length(ckt. km) (till September 2017) 2017-22 added by 2022 HVDC (800/500 kV) 15,556 - 4,280 4,280 765 kV 31,240 2,046 27,300 25,254 400 kV 1,57,787 8,678 46,000 37,322 220 kV 1,63,268 1,627 28,000 26,173 Total 3,67,851 12,551 1,05,580 93,029 HDVC capacity (MW) +/-800 kV 5,000 3,000 14,000 11,000 +/-500 kV 13,500 - - Total 19,500 - 14,000 11,000 Substation capacity (MVA) 765 kV 1,67,500 10,000 1,14,000 1,04,000 400 kV 2,40,807 20,445 1,03,000 82,555 220 kV 3,12,958 8,620 75,000 66,380 Total 7,21,265 39,065 2,92,000 2,52,935 Source : Central Electricity Authority 35 P O S IT IV E O U T LO O K REASONS FOR LONG-TERM SECTORAL OPTIMISM • India the fastest growing major global economy; expected to quadruple and emerge as a $ 10 trn economy in the next 15 years • India’s power appetite projected to increase [4]x in line with its growing economy in the next decade • India extensively under-penetrated: per capita power consumption considerably lower than peer countries which is estimated to reach 3000 units by 2040 compared to 1150 units in 2018. • Three forecasted drivers of India’s power consumption: organic increase in demand in a growing economy; under-penetration likely to correct (supply likely to increase demand)/ substantial growth of renewable energy 36 G A ME P O IN T EMERG IN G G ROWTH D RIV ERS R A ILWAYS & T E LECO M  Existing capacities and capabilities fungible across sectors  The greater the fungibility, the superior the return on gross block  Margins-enhancing competitive advantage  Will progressively enhance capacity utilisation, revenues and amortisaton economies Railways Telecom Around 6,000 km of electrification planned Accelerating data boom: 5G rollout expected to annually for the next three-four years drive next stage of tower rollout • Significant presence in telecom towers; • CORE approvals for all plants after Uluberia preferred tower supplier for Jio and all major expected soon domestic telecom companies • This will enable Skipper to utilise its capacity • Alliance with Ramboll – Denmark for technical (across T&D, Railways and Telecom). design/support in process and quality assurance 37 R A ILWAY E LEC T R IFICAT IO N S EC TO R RAILWAYS ELECTRIFICATION Large and robust growth plan in the pipeline: multi-year growth outlook Projected spending of Rs 35,000 cr over a period of next 3-4 lined up for Railway Electrification in India ; 40-45% of this to get invested in Rail Structures Proposed electrification of 6,000 km network in 2018-19 and 7,000 km route in 2019 -20 Projects of Rs 40,000 cr-plus to connect capitals of five NE states and border areas with rest of the country and areas bordering China, Myanmar and Bangladesh with the rest of the country. Being an East India player we are logistically well placed to target these large upcoming opportunities Railway up-gradation (Rs in Cr) 8000 Received CORE approval for all the plant to manufacture and supply various types of 4000 Railway overhead wiring support structures. 0 2016-17 2017-18 2018-19 2019-20 2020-21 38 LEA D E RS H IP P O S IT IO N SKIP P ER IS CLEARLY P OISED TO BE IN TH E W IN N IN G SP OT IN TH E RAILWAY SEC TOR • Large engineering capacity which can be deployed to make Railway Masts • Low cost base of manufacturing • One plant already approved - three more under approval • Integrated manufacturing facility with own raw material rolling facility 39 T E LECO M S EC TO R TELECOM TOWER • India needs around 100,000 additional towers to address growth 1.4 1.94 China bn mn • National Telecom Policy aims to inspire $100 bn investment in Customers Telecom tower five years • India’s 30 per cent broadband penetration leaves large headroom • Sector added 65,000 mobile towers in two years 1.18 0.46 • Expansion of 4G, 5G, Artificial Intelligence, Virtual Reality, India bn mn Internet of things and M2M among others are driving the Customers Telecom towers need for more towers I N DI A ON T HE C USP OF MOB I L E DA T A E X PL OSI ON India;s smartphone users will more than The number of connected devices will boom Average mobile data consumption per month double by 2022 (in mn) in india (in bn) in India (in gigabytes) 7 7 7 1 1 1 0 0 0 2 2 2 2 2 2 2 2 2 0 0 0 2 2 2 0 300 600 900 0 0.4 0.8 1.2 1.6 2.0 2.4 0 6 12 18 40 LEA D E RS H IP P O S IT IO N SKIP P ER IS CLEARLY SET TO BE IN TH E W IN N IN G SP OT IN TH E TELECOM SEC TOR • Large engineering capacity to support manufacturing of Telecom structures • Proximity to focus Telcos markets - East & North East • Tie up with one of world's leading tower design company - Ramboll • Long standing relationships with major telecos in India and abroad 41 P O LYME R P RO D U C TS S EG ME N T SKIPPER’S POLYMER BUSINESS Polymer Plants invested 70%+ gross block Among few Indian One of few Indian manufacturing state-of-the-art less than six years companies assured companies with capacity of 51,000 manufacturing old of CPVC for pipes NSF certification MTPA technology manufacture Quality certifications • ASTM D-1785, ASTM D-2467, ASTM D-2846 • IS: 12818 • IS: 13592 • IS: 4985 • IS: 15778 • IS: 13592 • IS: 14735 • IS: 10124 • IS: 14182 • NSF 42 ST R AT EG IC PA RT N E RS H IP PARTNERSHIP WITH VECTOR CONSULTING Skipper Pipes partnered Vector Consulting Group VCG a leading management consulting firm in India Partnership to increase retail market share and transform supply chain Directed to gain decisive competitive advantage Objectives To increase market share To build a robust sales organization with strong distribution ‘Pull’-based product replenishment system; high retail availability; lower corporate inventory. Processes directed to establish stronger ties with channel partners Developing partnerships with trade influencers through a long-term loyalty program 43 T H EO RY O F CO N ST R A IN TS OUR USP • Partnering benefits: • Exponential Sales Growth & Gain in Market Share Skipper is the only Indian polymer pipe company to • Robust Processes & Systems in place to improve implement Theory of profitability Constraints (TOC) approach in an organized • Consistent availability of entire range of products manner at billing points Directed to empower the • Improvement in working capital cycle and supply chain processes reduction of inventory days and systems • Gain of more output from the current capacity • Improvement in ROI to dealers and distributors 44 H O N O RS AWARDS AND ACCOLADES AWAR D: AWAR D: AWAR D: AWAR D: TH E L ARGE ST TOW E R E ME RGIN G POW E R GL OBAL H R N O. 1 E ME RGIN G SUPPL IE R FOR 3rd E PC PL AYE R E XCE L L E N CE BRAN D IN CON SE CUTIVE YE AR G IVEN B Y: E PC G IVEN B Y: POL YME R PIPE S & G IVEN B Y: W ORL D W ORL D H RD FITTIN GS POW E R GRID CON GRE SS G IVEN B Y: W CRC CORPORATION OF IN DIA L TD. (PGCIL ) AWAR D: AWAR D: AWAR D: AWAR D: MOST VAL UABL E STAR PE RFORME R TH E BE ST POL YME R MOST E TH ICAL CON TRIBUTION TO AW ARD FOR TH E YE AR BRAN D COMPAN Y POW E R IN DUSTRY 2015-16 G IVEN B Y: G IVEN B Y: G IVEN B Y: E T E DGE G IVEN B Y: E E PC CON STRICTION TIME S W ORL D CSR DAY IN DIA 45 DI SCLA I ME 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 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 46