ANNUAL INVESTOR CONFERENCE 25 th April, 2017 1 SAFE HARBOUR This - PowerPoint PPT Presentation

ANNUAL INVESTOR CONFERENCE 25 th April, 2017 1

SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Welspun India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. 2

Chairman’s address 1. 2. Business Insights AGENDA 3. Financial Highlights 3

CHAIRMAN’S ADDRESS 4

Macro-Economic Overview 5

MACRO ECONOMIC DEVELOPMENTS Change in US Administration Commodity Price Escalation Brexit FY17 EVENTS Currency Demonetisation Appreciation Stronger India 6

STRONGER INDIA Political Economic Social Stable govt. with 65% of population GDP growth at a strong below 35 yrs age 7.1% in FY17 leadership Improving ‘Ease of Per Capita Income doing business’ Increasing Brand crossed $1500 p.a consciousness Initiatives like “Make In India”, “Skill India” FDI inflows Internet penetration to growth at 18% in “Affordable housing” reach 60% by 2020 CY2016 scheme to boost home- related consumption “Digital India” Inflation under control; initiative to transform Policy measures like GST RBI closely monitoring it India into a digitally accelerate move towards organised sector empowered society Strong Growth Expected in next 5-7 Years 7

CURRENCY COMPARISON USD/INR USD/PKR USD/CNY USD/BDT USD/LKR USD/VND 110 108 China 106 SriLanka 104 Bangladesh 102 Vietnam Pakistan 100 98 India 96 94 92 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Mar -17 Indian Rupee appreciated by 6% from recent peak  Positive for importers  Exporters struggling to recalibrate to the new level All figures indexed to 100 taking 1 st April 2016 as base 8

COMMODITY PRICE ESCALATION Coal Price (Index 100) Cotton Shankar 6 Price (Index 100) 29% 37% Crude Oil Price (Index 100) Metal Price Index (Index 100) 38% 26% Mar-17 Coal price is Coal Futures - (UCXMc1), Metal index includes Copper, Aluminum, Iron Ore, Tin, Nickel, Zinc, Lead, & Uranium Price Indices 9

WELSPUN GROUP 10

WELSPUN GROUP – JOURNEY SO FAR… CONTINUED STRATEGIC EFFORTS TIMELY REFOCUS ON SIMPLIFICATION OF + ASSET CORE DELEVERAGING CORPORATE MONETISATION BUSINESSES STRUCTURE WELSPUN GROUP SALIENT ACTIVITIES FY 2016-17 Renewable Energy business sale Buyback of 15.49% shares in Welspun Enterprises India’s first financial closure in a HAM project HAM Project construction progressing ahead of schedule Awarded discovered field in B9 Cluster Keystone XL & Dakota Access pipeline project cleared by US government 11

REAPING BENEFITS OF THE EFFORTS Net Debt / EBITDA Net Debt/Equity 3.50 0.80 3.00 3.32 0.70 0.75 0.73 0.60 2.50 0.65 1.97 0.50 2.00 1.57 0.49 0.40 1.32 1.50 0.30 1.00 0.20 0.50 0.10 - - FY13 (A) FY15 (A) FY16 (A) FY17 (E) FY13 (A) FY15 (A) FY16 (A) FY17 (E) Interest Coverage Ratio 2.00 Current Ratio 3.50 1.80 3.00 1.60 3.14 3.20 1.77 1.69 1.40 2.50 1.51 1.20 2.00 1.28 1.00 1.50 1.92 0.80 0.60 1.00 1.34 0.40 0.50 0.20 - - FY13 (A) FY15 (A) FY16 (A) FY17 (E) FY13 (A) FY15 (A) FY16 (A) FY17 (E) Group Level Ratios are Continuously Improving 12

WELSPUN GROUP COMPANIES - CREDIT RATING Short Term Long Term Welspun India AA- A1+ Welspun Global AA- A1+ Brands Welspun Corp AA- A1+ Welspun Enterprises A A1 As per CARE/FITCH 13

Global Leader in Global Leader in Infrastructure Home Textiles Large Diameter Pipes Oil & Gas Group Revenue Market Cap Employees US$ 2.3 Billion US$ 2 Billion 25,000+ 14

WELSPUN INDIA - HOME TEXTILES INDUSTRY 15

INDIA ADVANTAGE – HOME TEXTILES Largest Favourable Competitive Producer of Socio-Economic Costs Cotton Factors 5 6 4 Global Strong Domestic Supportive Manufacturing Market Govt Policies Scale Potential 16

INDIA- LARGEST PLAYER IN US MARKET 40% 10% points Towels (Cotton) 38% 36% In 7 years 30% 26% 25% 23% 24% 23% 22% 22% 22% 22% 15% 15% 15% 2009 2012 2015 2016 22% points Sheets (Cotton) 49% 48% 45% In 7 years 29% 27% 26% 23% 22% 21% 18% 18% 16% 15% 15% 14% 13% 2009 2012 2015 2016 India China Pakistan ROW Source: Otexa 17

DOMESTIC MARKET OPPORTUNITIES Indian Urban Home Textile Market Size is Rs. 257 Bn.* in 2016 and Is Expected to reach Rs. 438 Bn. in next 5 years with CAGR of 11.25% 500 438 450 CAGR 11.25% 397 35 400 356 32 83 350 316 29 75 287 300 26 Rs. Billion 67 257 24 60 250 20 53 47 200 320 150 290 260 230 210 100 190 50 0 2016 2017 2018 2019 2020 2021 BED LINEN BATH LINEN OTHERS ~40% Urban Market is in top Metro cities ~14% Market in Top Metros is Organised * Excluding curtains, kitchen linen, upholstery 18

WELSPUN INDIA LTD 19

AUG ’16…. TRACEABILITY ISSUE ……OUR RESPONSE Business as usual with all other Customers • Strategic partnership with Cotton Egypt Association (CEA) • Promoting & marketing Egyptian cotton products worldwide Constituted an independent advisory council comprising of international experts from cotton industry, retail, branding & supply chain Successful implementation of remedial measures on structural, technology, process and people Implemented Wel-Trak TM - an industry-defining, multi-level traceability process to track the finished product back to raw material 20

……OUR RESILIENCE Revenue Net Debt to Current Positive FCF Credit Ratings Growth Equity Ratio Ratio in spite of Long Term 12% 1.3x 1.4x one-time item AA- Resilience Lender’s Trust & Customer Welspunites Community Relationships Belief 21

WELSPUN INDIA – CONSOLIDATING LEADERSHIP POSITION 21.7% 20.1% 11.3% 11.1% 9.9% 16.4% 14.7% 7.3% CY 13 CY 14 CY 15 CY 16 CY 13 CY 14 CY 15 CY 16 Market Share in Towels Market Share in Sheets * Based on OTEXA CY2016 data 22

WELSPUN INDIA – CONSISTENT PERFORMANCE What We What We FY17 Achieved Guided 3-Yr Average Revenue 15% 12% 10-15% Growth EBITDA 24% 25% 22-23% Margin Net Debt Constant 30 bn 30 bn CAPEX 8 bn 7 bn 8 bn 23

BUILDING A SUSTAINABLE LEADERSHIP POSITION New New New Innovation Brands Markets Channels Products 24

VISION 2020 Revenue Net Debt NIL $2 BN Innovative/Branded Share of Women Share of Revenue Domestic Revenue employees 50% 20% 20% 25

BUSINESS INSIGHTS 26

winning WITH CORE VALUES 27

Living the Welspun Values everyday being adapting CUSTOMER TECHNOLOGY CENTRIC delivering embracing INCLUSIVE COLLABORATION GROWTH 28

being CUSTOMER CENTRIC creating value with INNOVATION & BRANDS 29

A 150-year old legacy.. reinvented

WELSPUN’S BRAND SPECTRUM Premium & Sustainability & Innovation Technology Luxury Empowerment Innovation 36% and brands 16% of Welspun’s revenues in FY17 Coveted Licenses 31

adopting TECHNOLOGY accelerating GROWTH 32

Welspun’s proprietary industry-defining multi-level traceability process Tracking Cotton from Farm - Factory - Finished Goods - Shelf using RFID, Barcodes, QR Code Scanners with ERP System integration 33

embracing COLLABORATION leading TOGETHER 34

Top Universities Global Collaboration Technology Partners on Innovation Industry Associations 26 Unique Inventions Across The Globe 35