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1/11/2018

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Corporate Presentation

JANUARY 2018

INVESTOR PRESENTATION 2

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

INVESTOR PRESENTATION 3

BOROSIL – Established Glassware Manufacturer with over 5 decades of experience

• Consumer Division
• Specialty Glass & Specialty

Laboratory Products Borosil Glass Works Ltd. Gujarat Borosil Ltd.

• Solar Glass
• Pattern Glass

25.25%

INVESTOR PRESENTATION

Shareholding Pattern

4

Gujarat Borosil Limited – A Brief Overview

Y/E 31 March FY13 FY14 FY15 FY16 FY 17 Net Revenues from operations 964 1,328 1,518 1,816 1830 growth % 21.8% 37.8% 14.3% 19.6% 1% EBITDA 57 269 219 349 406 margin % 5.9% 20.2% 14.4% 19.2% 22.2% PAT (72) 83 15 74 141 margin %

• 7.4%

6.3% 1.0% 4.1% 7.7%

• Incorporated in 1988 and having its registered office at

Bharuch, Gujarat, Gujarat Borosil Limited (GBL) is engaged in the manufacturing of: – Low-iron Solar Glass for application in solar power sector – Patterned Glass for architectural applications

• GBL has successfully developed and produced solar glass

without using antimony and have the capability to produce fully tempered glass of two mm thickness

• GBL is a cost efficient and technology driven company
• Manufacturing facility in Govali, District Bharuch, Gujarat with

production capacity of 180 metric tons/ day equivalent to production of 1 GW of modules annually with specialization in Anti-Reflective coating

• Capacity expansion under way: Additional capacity for

production of 210 metric tons/ day (equivalent to production

• f 1.4 GW of modules annually) at Bharuch. This will take the

capacity to 2.4 GW p.a.

Borosil Glass Works Ltd, 25.25% Fennel Investment, 33.13% P K Kheruka, 16.57% Public, 25.05% 74.95% Promoter Holding

Introduction Key Financials

INR Mn * Net Revenues & EBITDA exclude Other Income

INVESTOR PRESENTATION

Key Highlights

Strong Outlook for Solar Energy Leading Solar Glass manufacturer Expanded Capacity to Capitalize on Strong Demand Outlook Experienced Management Team Product Differentiation Financials Defending Competition through R&D Driven Innovation

01 02 03 04 05 06 07

• Strong Government impetus to solar energy, with targets of 100 GW installed capacity

by 2022 (Added 7.5 GW in 2016-17. Government target of 15 GW in FY18)

• Proven cost competitiveness vis-à-vis foreign glass suppliers
• Broad base of domestic and international clients
• 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

• Highly qualified management team with more than 3 decades of experience in the glass

industry

• High-quality Solar Glass with low iron content, Anti-Reflective coating, highest glass

efficiency value and high resistance to Potentially Induced Degradation

• Steady Sales growth with improved EBITDA margins led by improved productivity and

cost savings

• 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. 5

INVESTOR PRESENTATION

The Gujarat Borosil: The Solar Company

2008

• Solar PV market internationally

seeing high growth

• Government launches NAPCC in

June 2008 which declares National Solar Mission as one of the core 8 national missions

• The Solar Glass market worldwide

goes through upheavals as the prices

• f

modules and components crash (Solar Glass prices crashed by almost 35% vs FY11)

• Top 3 solar module markets i.e.

Germany, Italy and Spain continue with slow down

• Overcapacity goes up as new

facilities are commissioned in China

• Anti dumping margin of ~40% is

established against Chinese imports in EU

• Government

provides huge impetus to the industry with the revised National Solar Mission target of 100 GW of Solar Installed Capacity by 2022

• GoI imposed an anti-dumping

duty on tempered glass imported from China for 5 years

• GBL

moves to capitalize the significant opportunity for Solar Glass

• GBL secures its market position

through diversification into the Extra-Clear Architectural patterned glass and starts focusing on the domestic market

• GBL benefits in the exports segment
• GBL commissioned tempering line

with capability for 2mm.Now aims to expand its current production capacity of 1 GW per annum to 2.4 GW per annum

2012 2015 2017

6

INVESTOR PRESENTATION 7

Solar PV Module

Solar Glass is the 2nd highest value item in the Solar PV Module, next only to the Solar Cell

Note: EVA stands for Ethylene Vinyl Acetate

Aluminum Frame Solar Glass Polymer Encapsulate (EVA) Back Sheet Solar Cell Junction Box for connecting panels electrically Polymer Encapsulate (EVA)

INVESTOR PRESENTATION 8

Key Growth Drivers for Indian Solar Industry

Strong Policy Initiatives

Source: MNRE

Indian Solar Mission

• National Solar Mission (NSM) sets out the target of 100 GW of grid-connected solar power by 2022
• Solar Parks Policy:

― A scheme by MNRE to set up solar parks across the country, each with a capacity of Solar Projects generally above

500 MW, with an aggregate target of 40 GW

― The above target helps achieve the overall solar power target of 100 GW by 2022

Solar Cities

• Aims to reduce the conventional energy consumption of 60 selected cities by a minimum of 10% through the adoption of

a combination of renewable energy alternatives (with a focus on solar energy) and energy efficiency measures

Tax and Financial Incentives

• Viability gap funding (VGF) scheme, Bundling scheme, Domestic content requirement (DCR)
• Tax and Financial Incentives to support the rooftop solar market:

― Capital subsidy: 30% subsidy for residential and institutional consumers (INR 50 bn) ― Accelerated depreciation: 80% depreciation (40% from FY18) ― Tax holiday: 10 year tax holiday (MAT payable) ― Low cost funding from global financial development institutions

National Tariff Policy (NTP)

• Amendments to National Tariff Policy (NTP), 2016 re-emphasizes a push for renewables, especially solar energy:

― Solar RPO target increased to 8% by 2022 ― Renewable Generation Obligation (RGO): Mandates coal and lignite based power plants established after a specified

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

INVESTOR PRESENTATION 9

Renewable Energy Targets

Capacity (GW) Till FY17 Target Capacity (FY22) Implied Capacity Addition Per Annum Addition CAGR (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%

Source: MNRE, Solar Energy Sector (ICRA Report)

Target Capacity Addition Rooftop Solar PV 40 GW Ground mounted solar projects 57 GW

Renewable Energy Targets - Overall Renewable Energy Targets - Solar (by 2022)

Others 3 GW

INR 6 Tn

Investment Required Measures Identified by GoI  Changes in land use regulations and tenancy laws  Identifying large chunks of land for solar land and rooftop projects  Developing power transmission network and green energy corridor  Setting up exclusive parks for domestic manufacturing of solar PV modules  Considering infrastructure status to solar projects  Strong enforcement of RPO norms and for providing RGO  Making net-metering compulsory

INVESTOR PRESENTATION 10

Solar PV Modules Competitive Landscape

Strong policy initiatives for solar PV modules

• Solar Module: Out of total installed capacity of ~8.4 GW, of which ~5.5 GW is operational, the utilized capacity is much

lower due to stiff Chinese competition. Hence, rest of the demand for solar modules is met through imports. Any imposition of anti-dumping duty on solar modules could expand the target market for GBL further.

• Solar glass demand is growing exponentially driven by Government strong impetus to solar energy and emphasis on

domestic manufacturing. It will get further boost with emphasis on domestic manufacturing of modules. Solar Glass Market Place High growth in domestic manufacturing of Solar PV Modules Solar glass suppliers Solar PV Modules Domestic PV Module Production Imported PV Modules (majority China) Imported Glass (majority China) Indian Glass Manufacturers (Gujarat Borosil)

INVESTOR PRESENTATION 11

Indian Solar PV Modules Industry: Supported by Policy Impetus

Source: MNRE

Boost to Domestic Solar Modules Production in India ♦ Government has proposed developing 7.5 GW of Solar by 2022 with a target that at least 5.5 GW of solar modules will be made in India every year in connection. ♦ Under the Modified Special Incentive Package Scheme (M-SIPS), announced by the Department of Electronics and Information Technology, 20% and 25% subsidy on capital expenditure has been announced for entities establishing cell and module lines in Special Economic Zones (SEZ) and Non-SEZs, respectively. ♦ The rooftop solar sector recently received approval from World bank for a global environmental facility (GEF) grant of US $ 22.93 Million to enhance installed capacity of grid connected rooftop solar (GRPV) and to strengthen the capacity of relevant institutions for wise spread installations in India. ♦ Government is finalizing a scheme to subsidize manufacturing of solar equipment in India - Subsidy would be in the form of either interest subvention or cheaper loans from banks or any other suitable form. Boost to Production of Solar Module Components Domestically ♦ The Indian Ministry of Finance has imposed an anti-dumping duty on tempered glass (solar glass) imported from China in the range of $52.85 per metric ton (MT) to $136.21/MT for 5 years. ♦ India’s Jawaharlal Nehru National Solar Mission (JNNSM) mandates solar power project developers to locally source a portion of their solar panel requirements as per the Domestic Content Requirement (DCR) clause to boost the sale of solar panels in India. Strong Policy Initiatives

INVESTOR PRESENTATION 5.8 6.9 8.4 Jun-2016 Dec-2016 May-2017 12

Leading to top PV module manufacturers ramping up capacity

Domestic PV Modules Installed Capacity Indian Solar PV Module Manufacturers – Installed and Operational Capacity* The installed capacity of the module manufacturers has seen a constant increase

In GW

Sr.

• No. PV Module Manufacturer

Installed Capacity (MW) Operational Capacity(MW)

1 Vikram Solar Pvt Ltd 500 500 2 Waaree Energies Pvt Ltd 500 500 3 Emmvee Photovoltics Pvt Ltd 500 500 4 TATA Power 400 300 5 Renewsys India Pvt Ltd 180 180 6 Lanco Solar Pvt Ltd 175 175 7 Alpex Exports Pvt Ltd 300 150 8 Sova Power Limited 200 150 9 Goldi Green Technoligies Pvt Ltd 125 125 10 HHV Solar Tehnologies Pvt Ltd 100 100 11 Premier Solar Systems Pvt Ltd 100 90 12 Websol Energy Systems Limited 90 90 13 Moser Baer Solar Limited 230 50 14 Savitri Solar Pvt Ltd 80 15 Mundra Solar 1,200 16 Others 3,718 2,596

Grand Total (in GW) 8.4 5.5

Aiming to capture strong Domestic and Exports demand, top PV players are expanding capacities significantly

Source: MNRE * As on 31st May 2017

INVESTOR PRESENTATION 13

Indian Solar PV Module Industry- Exports emerging to be next growth kicker

High Quality Product

• f GBL

Rise of Anti-Dumping Laws Globally Benefit to GBL in Exports Market

• Low Iron content at less than 90 PPM

EU

• Minimum

import price (MIP) agreement and maximum annual import quota cap for Solar Manufacturers

• Higher

duties to non-complying manufacturers if not complied with

USA

• Countervailing duty and anti-dumping

duty on top Chinese PV module manufacturers.

• The recent ruling of ITC in favor of

Suniva / Solarworld to impose ADD on solar modules that includes imposition

• f tariffs on module imports

Turkey

• Turkey

imposed definitive anti- dumping duties

• n

solar glass

• riginating in Israel and mainland China
• China-based PV panel manufacturers

are now subject to an anti-dumping fee

• f at least US$20/m²

GBL already have export revenues

• f 25% in H1FY18, which is

expected to grow further Demand expected from emerging market like Turkey Overseas PV Module Market Dynamics

• High Chemical durability
• Glass Efficiency value of 0.952
• High PID resistance
• Antimony-Free

glass with less Poisonous Content

INVESTOR PRESENTATION 14

Product Offerings: High-Quality Solar & Architectural Glass

Solar Glass Patterned Glass Architectural applications:

Photo Voltaic Modules Solar Thermal Flat Plate Collectors High-efficiency Greenhouses Shower Cubicles Partitions and Tabletops

Solar Glass Patterned Glass Dimension Parameters

• Thickness Range: 2 mm onwards
• Thickness Tolerance: ±0.2 mm for 3.2 mm and 4.0 mm thickness
• Maximum sheet width: 2,500 mm (Standard sheet width ~ 2150 mm gross)
• Maximum sheet length: 3,500 mm
• Maximum sheet width: 2,660 mm
• Maximum sheet length: 3,500 mm

PV Transmission

• ≥ 91.5% for uncoated Solar Glass
• ≥ 94% for Anti-Reflective coated glass

Fractional Sizes

• Fully computerized online automatic cutting can produce fractional sizes
• Available in standard thickness (mm): 3.2, 4.0, 5.0
• Available in standard thickness (mm): 2 – 10

Fully tempered 2 mm Solar Glass made from Air floatation Tempering line available in 2017 (High speed automatic glass tempering line which is capable of processing all custom specific sizes)

Product Specifications Product Application

INVESTOR PRESENTATION 15

GBL’s Solar Glass: Technologically Advanced with High Performance

Antimony-Free

Less Poisonous substances

Better Transmission

Low Iron content 90 PPM

Better Longevity

High PID resistance

Durability

High Chemical durability

High Efficiency

Glass Efficiency value

• f 0.952

01 02 03 04 05

INVESTOR PRESENTATION 16

Innovation led -Engineering and R&D Capabilities

Results Achieved through Passion for Innovation and R&D

• Developed technology to manufacture antimony free low iron textured Solar Glass

Antimony free Low Iron Solar Glass 1

• Antimony Free Solar Glass in FY15
• Use of Egg shell in glass in FY16

Patents Filed 2

• Setup of Solar modules of 302 KVA for R&D Rooftop installations which is used to

power an associate company Borosil’s 302KVA R&D Installation 3

• Total power produced per inverter for Glass with antimony is 32078 KWH and

BOROSIL glass without antimony is 34496 KWH. Hence Extra energy achieved by BOROSIL glass is 7.5 %. Higher Energy Output (in context of Rooftop R&D Installation) 4

INVESTOR PRESENTATION 17

New Photovoltaic

Solar windows Solar car parks Solar curtain walls Solar rooftops APPLICATIONS

2 3 4 5 6 1

New generation frameless photovoltaic modules Thin glass for technologies

• f the future

No roller waves, white stripes & pick ups on processed glass Environment friendly and sustainable technology Quality, Long term performance reliability & cost effectiveness Tempered as per EN 12150 qualifying it as a safety glass

ONE TECHNOLOGY SIX ADVANTAGES

INVESTOR PRESENTATION 18

Fully Tempered 2mm Solar Glass

INVESTOR PRESENTATION 19

Quality Assurance

End Cap Pallet Quality Control & Quality Assurance Measures Customized packing standard

• Quality Control & Quality Assurance measures with an

emphasis on continual improvement

• Implemented 5S training program in various work areas

to improve cleanliness

• Implementing Cp / CpK analysis and Pareto charts for

monitoring and controlling various defects

• Implemented OEE ( Overall equipment effectiveness ) by

identifying critical parameters

• Customer complaint analysis is being done by CAR

format, similar to 8D format. CAPA is also being done where ever required to investigate root cause and implement preventive action

INVESTOR PRESENTATION 20

Borosil’s Solar Glass- Efficiency Value Certifications

SPF, a leading test Institute in Switzerland, has measured the glass efficiency of the Gujarat Borosil product as 0.952, thus putting it at the highest efficiency amongst the glasses tested by them

INVESTOR PRESENTATION 21

Key Domestic Customers

Key Customers - Domestic

INVESTOR PRESENTATION 22

Key International Customers

Key Customers – International

Croatia Kenya Kenya Spain Italy Germany Italy Spain Italy US US Greece

Germany

INVESTOR PRESENTATION 23

Financial Highlights

Consistent Revenue Growth with… …with Healthy EBITDA Margins…

1,328 1,518 1,829 1,840 FY14 FY15 FY16 FY17 269 219 349 406 20.3% 14.4% 19.1% 22.1% FY14 FY15* FY16 FY17 EBITDA EBITDA Margin

INR Mn INR Mn

…and PAT Margins… …leading to Attractive Return Ratios

83 15 74 141 6.3% 1.0% 4.0% 7.7% FY14 FY15* FY16 FY17 PAT PAT Margin 1% 8% 26% 6% 14% 16% FY15 FY16 FY17 ROE RoCE^

INR Mn

*Net of write off to the extent of ~INR 56 Mn ^RoCE = EBIT/Average Capital Employed

1,328 1,518 1,829 1,840 FY14 FY15 FY16 FY17

INVESTOR PRESENTATION 24

Corporate Governance: Board of Directors

Name Designation Age Background

• B. L. Kheruka

Chairman & Non-Executive Director 87

• Associated with the Company since incorporation
• Over 30 years of experience in glass industry
• Chairman of Borosil Glass Works Limited
• P. K. Kheruka

Non-Executive Director 66

• Associated with the Company since incorporation
• Experience of nearly 30 years in glass industry
• On the board of Borosil Glass Works Limited.

Shashi Kumar Madanlal Mehra Independent Director 65

• Member of ICAI
• Partner at Mehra & Sharma Associates

Ashok Kumar Jain Non executive Director 59

• Chartered Accountant, B.Com and Member of ICAI
• Director of Motilal Oswal Asset Management and Hopewell Tableware Private

Limited Rajesh Kumar Chaudhary Whole-time Director 47

• B.Com, Member of ICAI
• Former CFO of Borosil Glass Works Limited

Jagdish Joshi Independent Director 73

• Ex- I.A.S – retired as Additional Chief Secretary (Planning)
• Held various positions in Maharashtra State Government and GoI

Ashok Kumar Doda Independent Director 71

• B. Tech(Honors) from IIT Bombay
• Former director of IDBI Bank Limited and IFCI Limited

Shalini Kamath Independent Director 53

• Director of Graphite India Limited
• Director of the company since November, 2014

INVESTOR PRESENTATION 25

Corporate Governance: Key Management Personnel

Name Designation Age Background Rajesh Kumar Chaudhary Whole Time Director 47

• B.Com, Member of ICAI
• Former CFO of Borosil Glass Works Limited

Sunil Kishanlal Roongta CFO 47

• Member of ICSI, ICWAI & ICAI
• Experience in Finance and accounts

Kishor Talreja Company Secretary 42

• Commerce Graduate, Law Graduate and member of ICSI
• Experience in Corporate sector – Secretarial & Listing compliance.

Annexure

INVESTOR PRESENTATION 27

List of Abbreviations

GBL : Gujarat Borosil Limited PV : Photovoltaic EVA : Ethylene Vinyl Acetate ARC : Anti-Reflective Coating HSE : Health, Safety and Environment PID : Potential Induced Degradation PPM : Parts Per Million NAPCC : National Action Plan on Climate Change COP : Conference of Parties JNNSM : Jawaharlal Nehru National Solar Mission NSM : National Solar Mission NTP : National Tariff Policy CEA : Central Electricity Authority MNRE : Ministry of New and Renewable Energy SECI : Solar Energy Corporation of India RPO : Renewable Power Obligation REC : Renewable Energy Certificate RGO : Renewable Generation Obligation VGF : Viability Gap Funding FiT : Feed-in-Tariff PLF : Plant Load Factor PPA : Power Purchase Agreement ADB : Asian Development Bank KFW : KfW Development Bank, a German Government-owned development bank MAT : Minimum Alternate Tax IP : Intellectual Property GW : Gigawatt GWh : Gigawatt-hour MT : Metric Tons TPD : Ton per Day KWh : Kilowatt Hour IPO : Initial Public Offering EBITDA : Earnings before interest, tax, depreciation and amortization ROCE : Return on capital employed- Calculated as (EBITDA - Taxes)/ Average (Total Assets - C.L. + ST Debt + Current Maturities of LT Debt) CAGR : Compounded Annual Growth Rate Capex : Capital Expenditure FY : Financial Year ending 31st March INR : Indian Rupee mm : Millimetre Mn : Million N.A. : Not Available PA : Per Annum

28

Thank You