Click to edit Master title style Corporate Presentation 1/11/2018 - PDF document

JANUARY 2018 Click to edit Master title style Corporate Presentation 1/11/2018 1

Disclaimer This presentation is strictly private and confidential. This presentation is prepared exclusively for the benefit and for the internal use of the recipient and/or its affiliates and does not carry any right of publication or disclosure to any other party. Neither this presentation nor any of its contents may be used for any other purpose without the prior consent of Gujarat Borosil Limited (GBL). The information in this presentation reflects prevailing conditions and our view as of this date, all of which are, accordingly, subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. The ideas expressed herein factor in the current regulatory framework and accordingly is subject to change. GBL and their directors, officers, employees and promoters expressly disclaim any responsibility or liability whatsoever in connection with the compilation of this presentation and the information contained herein. This presentation may include future expectations, projections, or forward looking statements. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events to be materially different from future events expressed or implied by such forward looking statements 2 INVESTOR PRESENTATION

BOROSIL – Established Glassware Manufacturer with over 5 decades of experience 25.25% Borosil Glass Gujarat Works Ltd. Borosil Ltd.  Specialty Glass & Specialty Laboratory Products  Solar Glass  Pattern Glass  Consumer Division 3 INVESTOR PRESENTATION

Gujarat Borosil Limited – A Brief Overview Introduction Key Financials INR Mn  Incorporated in 1988 and having its registered office at Y/E 31 March FY13 FY14 FY15 FY16 FY 17 Bharuch, Gujarat, Gujarat Borosil Limited (GBL) is engaged in Net Revenues 964 1,328 1,518 1,816 1830 from operations the manufacturing of: growth % 21.8% 37.8% 14.3% 19.6% 1% – Low-iron Solar Glass for application in solar power sector EBITDA 57 269 219 349 406 margin % 5.9% 20.2% 14.4% 19.2% 22.2% – Patterned Glass for architectural applications PAT (72) 83 15 74 141  GBL has successfully developed and produced solar glass margin % -7.4% 6.3% 1.0% 4.1% 7.7% without using antimony and have the capability to produce * Net Revenues & EBITDA exclude Other Income fully tempered glass of two mm thickness Shareholding Pattern  GBL is a cost efficient and technology driven company Borosil Glass  Manufacturing facility in Govali, District Bharuch, Gujarat with Works Ltd, Public, production capacity of 180 metric tons/ day equivalent to 25.25% 25.05% production of 1 GW of modules annually with specialization in Anti-Reflective coating 74.95% Promoter  Capacity expansion under way: Additional capacity for Holding P K Kheruka, production of 210 metric tons/ day (equivalent to production Fennel 16.57% Investment, of 1.4 GW of modules annually) at Bharuch. This will take the 33.13% capacity to 2.4 GW p.a. 4 INVESTOR PRESENTATION

Key Highlights Strong Outlook for Solar Energy  Strong Government impetus to solar energy, with targets of 100 GW installed capacity 01 by 2022 (Added 7.5 GW in 2016-17. Government target of 15 GW in FY18) Leading Solar Glass manufacturer 02  Proven cost competitiveness vis-à-vis foreign glass suppliers  Broad base of domestic and international clients 03 Defending Competition through R&D Driven Innovation  State-of-the-art manufacturing facility, with strong testing, innovation and R&D infrastructure. Recently acquired capability to make fully tempered 2 mm solar glass. Product Differentiation 04  High-quality Solar Glass with low iron content, Anti-Reflective coating, highest glass efficiency value and high resistance to Potentially Induced Degradation Experienced Management Team 05  Highly qualified management team with more than 3 decades of experience in the glass industry Expanded Capacity to Capitalize on Strong Demand Outlook 06  Company looking to more than double its existing capacity. Solar glass demand growing exponentially and will get further boost with emphasis on domestic manufacturing of modules 07 Financials  Steady Sales growth with improved EBITDA margins led by improved productivity and cost savings 5 INVESTOR PRESENTATION

The Gujarat Borosil: The Solar Company  The Solar Glass market worldwide goes through upheavals as the prices of modules and components crash (Solar Glass  Government provides huge prices crashed by almost 35% vs impetus to the industry with the FY11) revised National Solar Mission  Solar PV market internationally  Top 3 solar module markets i.e. target of 100 GW of Solar seeing high growth Germany, Italy and Spain Installed Capacity by 2022  Government launches NAPCC in continue with slow down  Overcapacity goes up as new  Anti dumping margin of ~40% is  GoI imposed an anti-dumping June 2008 which declares National Solar Mission as one of facilities are commissioned in established against Chinese duty on tempered glass imported China the core 8 national missions imports in EU from China for 5 years 2008 2012 2015 2017  GBL  GBL secures its market position  GBL benefits in the exports segment  GBL commissioned tempering line moves to capitalize the significant opportunity for Solar Glass through diversification into the with capability for 2mm.Now aims to Extra-Clear Architectural patterned expand its current production glass and starts focusing on the capacity of 1 GW per annum to 2.4 domestic market GW per annum 6 INVESTOR PRESENTATION

Solar PV Module Solar Glass Polymer Encapsulate (EVA) Solar Cell Polymer Encapsulate (EVA) Back Sheet Junction Box for connecting panels Aluminum electrically Frame Solar Glass is the 2 nd highest value item in the Solar PV Module, next only to the Solar Cell Note: EVA stands for Ethylene Vinyl Acetate 7 INVESTOR PRESENTATION

Key Growth Drivers for Indian Solar Industry Strong Policy Initiatives  National Solar Mission (NSM) sets out the target of 100 GW of grid-connected solar power by 2022  Solar Parks Policy: Indian Solar ― A scheme by MNRE to set up solar parks across the country, each with a capacity of Solar Projects generally above Mission 500 MW, with an aggregate target of 40 GW ― The above target helps achieve the overall solar power target of 100 GW by 2022  Aims to reduce the conventional energy consumption of 60 selected cities by a minimum of 10% through the adoption of Solar Cities a combination of renewable energy alternatives (with a focus on solar energy) and energy efficiency measures  Viability gap funding (VGF) scheme, Bundling scheme, Domestic content requirement (DCR)  Tax and Financial Incentives to support the rooftop solar market: Tax and ― Capital subsidy: 30% subsidy for residential and institutional consumers (INR 50 bn) Financial ― Accelerated depreciation: 80% depreciation (40% from FY18) Incentives ― Tax holiday: 10 year tax holiday (MAT payable) ― Low cost funding from global financial development institutions  Amendments to National Tariff Policy (NTP), 2016 re-emphasizes a push for renewables, especially solar energy: ― Solar RPO target increased to 8% by 2022 National Tariff ― Renewable Generation Obligation (RGO): Mandates coal and lignite based power plants established after a specified Policy (NTP) date to set up renewable capacity, or purchase renewable energy, as per the directions of central Government ― Allowing fully depreciated power plants whose PPAs have expired to bundle renewable power with power from plants ― Exempting renewable sources from inter-state transmission charges Source: MNRE 8 INVESTOR PRESENTATION

Renewable Energy Targets Renewable Energy Targets - Overall Target Implied Capacity Per Annum CAGR Capacity (GW) Till FY17 Capacity (FY22) Addition Addition (FY17-22) Solar 12.3 100 87.8 17.5 52% Wind 32.3 60 27.7 5.5 13% Bio-mass 8.2 10 1.8 0.4 4% Others 4.4 5 0.6 0.1 3% Renewable Energy Targets - Solar (by 2022) Target Capacity Addition Measures Identified by GoI  Changes in land use regulations and tenancy laws Rooftop Solar PV 40 GW  Identifying large chunks of land for solar land and rooftop projects INR 6 Tn  Developing power transmission network and green energy Investment Ground mounted solar projects corridor Required 57 GW  Setting up exclusive parks for domestic manufacturing of solar PV modules  Considering infrastructure status to solar projects Others  Strong enforcement of RPO norms and for providing RGO 3 GW  Making net-metering compulsory Source: MNRE, Solar Energy Sector (ICRA Report) 9 INVESTOR PRESENTATION