ANNUAL INVESTOR CONFERENCE 2017 9th June 2017, Mumbai Seeking Happiness | Finding Growth World Economy – Slow Pace of Revival Projections % Change 3.6 3.5 3.4 3.1 2015 2016 2017 2018 Source: IMF World Economic Outlook, April 2017 3 However, Uncertainties Loom • Inward orientation of countries – “Reverse Globalization” • Globalization of terrorism • Risks to cyber-security 4 India – Continued Growth Momentum % Change Projections 7.9 7.7 7.2 6.8 FY 2015 2016 2017 2018 Source: IMF World Economic Outlook, April 2017 5 2017 – 2018 : Year of Disruptions • Implementation of GST • Reform push by government especially in Infrastructure, Railways and Urban Development • Impact of technology transformation 6 Re-imagining Businesses • CEAT – from commodity to consumer • KEC – resurgence through focused diversification • Zensar – being digital and selling digital • RPG Life Science – improvement trajectory continues 7 Why RPG? - Best in class governance and disclosure standards - People-centric ethos; thrust on innovation and diversity - Learning Environment & Operational Excellence - Robust Strategy 8 Shareholder Wealth Creation CEAT KEC Zensar RPG LS SENSEX CEAT: 17.3x Combined Market Cap US$ 3.0 bn RPG LS: 6.8x Zensar: 5.3x KEC: 3.3x SENSEX: 1.7x Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Market Caps and SENSEX indexed to 1 on 2nd April 2012 9 RPG @ the forefront of Digital reimagine RPG Smart Products Future Factories Connected Customers Intelligent Workplaces 10 KEC INTERNATIONAL LIMITED Power T & D Cables Railways Water Water Power T & D Cables Railways Civil Solar Overview: FY 2016-17 MULTI-LOCATIONAL PAT for FY17MANUFACTURING grows 106% YoY Significant improvement in profitability. 8 Manufacturing facilities EBIDTAacross Margins India, Brazil increase and by Order Intake for FY 17 grew by 42% over FY 16. 130 bps toMexico 9.3% in FY 17 Manufactures Towers, Cables, Poles and Hardware Order Book for FY 17 shows 35% increase YoY. PBT for Q4 FY 17 crosses Rs 200 crs for the first time Robust L1 pipeline. EBITDA Margin for Q4 FY 17 at 10.4% Foray into civil business Successful Resurgence of Remarkable Uptick Broadening of Significant International in Railways and Customer Base in improvement in Business Solar Business India working capital 12 Key Growth Drivers . International Order book grows 27% YoY . Entered/ re-entered 8 new countries in FY 17 Resurgence of . Added East Asia Pacific as a new focus region international . De-risked concentration exposure in Saudi business . SAE continues on growth trajectory . Secured large sub-station orders in Africa. Balanced order book Successful . Increasing presenceGLOBALwith SOURCINGexisting SEB clientele broadening Material . Evaluating business potential with new SEBs of customer Working capital funding base in India . Working with major privateEquipmentdevelopers . Actively engaging withManpowernew entrants 13 Key Growth Drivers Railways Rs crs Revenue Order Book . Revenue doubles, order book triples 1,522 . Margins of railways moving closer to T&D 518 446 Remarkable . Increase in budgetary allocation for railways 210 uptick in the . Overhead electrification targets doubled railways and Mar-16 Mar-17 solar Solar Rs crs business Revenue Order Book 464 . Installed 65 MW of projects with trackers GLOBAL SOURCING . Commissioned 100 MW of projects till date Material . 140 MW of projectsWorkingcurrently capital fundingunder execution 160 Equipment 93 . Entered the ‘Big League’ in Solar EPC 39 Manpower . Established strategic partnerships Mar-16 Mar-17 14 Key Growth Drivers MULTI-LOCATIONAL Improvement in FCFE: EBITDA Margins % trendMANUFACTURING 10.4% 8.9% 9.3% 8.4% 8.7% • Reduction in interest costs 8% 7% 7.3% 7.3%8 Manufacturing7.3% facilities 6.4% 6.3% 5.9% across India, Brazil and • Improvement in working capital cycle 5.6% 5.1% Mexico • Reduction of debt Manufactures Towers, Cables, Poles and Hardware Improvement in ROCE: • Significant improvement in EBIT Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 • Reduction in capital employed across SBUs Mar Mar Mar Mar Particulars Particulars 2017 2016 Incr/(Decr) 2017 2016 Incr/(Decr) Receivables (Rs cr)* 5,355 5,902 (547) Net Debt (Rs cr)* 1,767 3,098 (1,331) Receivable (days) 231 247 (16) Acceptances (Rs cr) 969 794 175 Working capital (days) 108 139 (31) Total (Rs cr): 2,736 3,892 (1,156) * Receivables and net debt exclude amounts related to the company’s BOT Project 15 Future Growth Drivers Solar - International T&D EPC- Brazil Substation- International Improving financials Additional capacity of Close to 30,000 kms of Built/ building around Continuing reduction in 30 GW expected in lines to be built till 70 sub stations in the finance costs through addressable 2019. AIS & GIS Space. better working capital geographies. management and Estimated investment Completed/ ongoing 20 borrowing profile. Exploring global of close to Rs 60,000 crs projects across 19 markets like UAE, in transmission lines. countries in past 2 Improving operating Jordan, Thailand, South years. leverage in railways and Africa. Shift from solar business. manufacturing to EPC Replicate success story To leverage T&D infra by leveraging KEC’s of domestic substation Better margin profiles and capabilities, use expertise. business in international through participation in PQs from India. market. high value tenders. Solar park- India EPC- Brazil Substation- Afghanistan 16 Strategy: FY 2017-18 and beyond MULTI-LOCATIONAL Prudent Financial AugmentedMANUFACTURING Operational & Progressive & Evolving Management & Execution Excellence; Focus Cultural Ethos on 8Delivering Manufacturing Projects facilities Control across India, Brazil and Ahead ofMexico Schedule Manufactures Towers, Cables, Poles and Hardware Valuing People; Enhanced Client Focus Investment in Human to meet the evolving Capital; Focus on aspirations of KEC’s Diversity & Inclusion Global Customer Base. Committed to Digital Transformations Focused Social Ensuring & Endeavors Inspiring Innovation Safety@Workplace 17 CEAT LIMITED MAKING MOBILITY SAFER AND SMARTER. EVERYDAY. Overview One of India’s leading tyre company with over 50 yrs of presence Distribution Network : 4,500+ dealers, 450+ exclusive CEAT franchisees 6 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath* & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 player in Sri Lanka in terms of market share * Under commissioning FY 17 Revenue Breakup by Product FY 17 Revenue Breakup by Market Farm, 7% Speciality, Exports, 14% (6%) 5% (5%) (14%) Passenger Truck and Cars / UV, Buses, 33% 13% (11%) (38%) OEM, LCV, 13% Replacement, 23% (23%) (13%) 63% (63%) 2/3 wheelers, 29% (27%) Note : Figures in parenthesis denote FY16 19 Key Updates Financial Update . FY17 Sales at Rs 5,722 Crs; 5% growth . PAT at Rs 361 Crs; margin at 6.3% . Debt / equity ratio at 0.4 times . Long term credit rating upgrade to AA by CARE and India Ratings & Research Accolades . Ranked highest in India for OE Tyre customer satisfaction as per J.D. Power 2017 India Original Equipment Tyre Customer Satisfaction Index (TCSI) . Halol plant conferred with “Sword of Honour Award” by British Safety Council 20 Strategy 1 Differentiated Products Two wheelers Domestic Market Passenger cars & 2 Strong Brand Utility vehicles 3 Extensive Distribution Profitable growth 4 Deep OEM Partnerships International Off Highway Tyres Market Emerging markets 5 World Class R&D 6 Expanding Global Reach 21 1 Differentiated Products . “Fuelsmarrt” tyres for Passenger Cars . “Win Series” tyres for Truck & Bus Reduced rolling resistance High-strength rubber & steel Less fuel consumption, more savings High load carrying capability Endurance & overheating prevention . “Puncture Safe” tyres for 2 Wheelers - India’s 1st Self Sealing tyre . “Milaze” tyres for SUV Taxi segment . “Buland” tyres for Small Commercial Vehicles Improved life & load carrying capacity Stiffer shoulder & sidewall gives higher Higher mileage up to 1,00,000 loadability kilometers Higher tread radius delivers longer life 22 2 Strong Brand TVCs/ Campaigns In the Game of Roads, CEAT Helps Be Monsoon Smart Tubeless Bike Tyres Drive Safe Dad 23 3 Extensive Distribution Shoppe Shop in Shop (SIS) Distribution Network . 4,500+ dealers . 450+ CEAT Franchisees (Shoppes + Hubs) . 250+ two-wheeler distributors . 350+ Multi Brand Outlet / Shop in Shops . Launched CEAT Bike Shoppes Multi Brand Outlet (MBO) Bike Shoppe District Coverage No. of CEAT Shoppes 290 601 464 176 212 102 FY12 FY15 FY17 FY12 FY15 FY17 24 4 Deep OEM Partnerships 25 5 World Class R&D . State of the art R&D facility at Halol plant . R&D focussed on development of breakthrough products, alternate materials, green tyres, smart tyres . Partnerships with global institutes and technology partners . Increased allocation towards R&D 26 6 Expanding Global Reach Key Export Clusters Emerging markets . Sri Lanka: Europe Cluster Leadership position with 50+% market US Cluster share Middle East . Focused Cluster product and distribution ASEAN strategy for Cluster West Africa East Africa select clusters LATAM Cluster Cluster Cluster 27 Passenger Segment Trends 2/3 wheelers (Rs Cr) PC / UV (Rs Cr) 743 1,648 1,483 619 561 1,246 476 899 376 639 284 525 Revenue FY 12 FY13 FY 14 FY 15 FY 16 FY 17 FY 12 FY13 FY 14 FY 15 FY 16 FY 17 . 2 Wheeler plant at Nagpur (Phase I) commissioned in March 2016; Expanding Capacity of 120 MT/day by Q2 FY18 . Passenger Car Radial plant at Halol (Phase II) commissioned in September Capacities 2015; Capacity of 120 MT/day by Q2 FY18 . FY17/ FY16 volume growth: 2/3 wheelers (+20% ), PC/UV (+15%) 28 Off Highway Tyres Status Update . Greenfield OHT (Off Highway Tyres) radial plant in Ambernath . Investing Rs 330 Crs for a Phase 1 capacity of 40 MT/day which will be further ramped up to 100 MT/day . Plant is now live and tyres are being tested across multiple global markets 29 Strategic Expansion Plans .