Bharat Dynamics Limited — Investor Presentation 2020

Jul 28, 2020

BHARAT DYNAMICS LIMITED

BHARATDYNAMICSLIMITED

(A Govt. of India Enterprise, Ministry of Defence)

CIN :- L24292TG1970GO1001353

Corporate Office: - Plot No. 38-39, TSFC Building, Near ICICI Towers, Financial District, Nanakramguda, Hyderabad-500032 Registered Office: - Kanchanbagh, Hyderabad-500058 Tel: 040-23456145; Fax: 040-23456110

e-mail:investors@bdl-india.in; website:www.bdl-india.in

Ref: BDL/CS/2020/SE-34 Date: 28.07.2020

To,
LimitedBSE
ListingDepartment
Tower,PhirozeJeejeebhoy
DalalStreet,
Mumbai-400001

Scrip Code / Symbol:541143 /BDL

Dear Sir/Madam,

Sub: Intimation of Investor's Roadshow under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, wewish to inform that the Companyofficials are participating in the Non - Deal Roadshow through Video Conference (VC), which have been scheduled; onall daysstarting from Wednesday, July 29, 2020 to Friday, July 31, 2020.

A copy of the presentation to be presented and discussed during the roadshows is enclosed herewith for your information, apart from any other information available in public domain.

Thedetails of the said meeting andpresentation is also made available on Company's website www.bdl-india.in. also available on BSE Limited website - www.bseindia.com and National Stock Exchange of India Ltd website www.nseindia.com, for information purposes.

Kindly note that changes may happen dueto exigencies on the part of host / Company.

This is for your information and record, please.

Thanking You

YoursFaithfully, For Bharat Dynamics Limited

Nivgpine N Nagaraja CompanySecretary

BHARAT DYNAMICS LIMITED

CORPORATE PRESENTATION

DISCLAIMER

By attending the meeting/telephonic call where this presentation is made, you agree to be bound by the trailing restrictions regarding the information disclosed in this presentation. This presentation has been prepared by Bharat Dynamics Limited (the "Company") solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person and does not constitute a recommendation regarding the securities of the Company.

This presentation, its contents and any oral information provided in connection with this presentation are strictly confidential and should not be copied, published or reproduced in any form or distributed, disseminated or disclosed, in whole or part, by recipients directly or indirectly to any other person. Failure to comply with this restriction may constitute a violation of applicable securities laws.

This presentation contains certain statements that are or may be forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth and competition, among others. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company. Any investment in securities issued by the Company will also involve certain risks. There may be additional material risks that are currently not considered to be material or of which the Company, its promoters, any placement agent, their respective advisers or representatives are unaware. Against the background of these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company, its promoters, any placement agent, their respective advisers or representatives assume no responsibility to update forward-looking statements or to adapt them to future events or developments. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.

The information contained in this presentation has not been independently verified. The information in this presentation is in summary form and does not purport to be complete. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not current after the date of this presentation. Further, past performance of the Company is not necessarily indicative of its future results. Any opinions expressed in this presentation or the contents of this presentation are subject to change without notice. This presentation should not be construed as legal, tax, investment or other advice. Neither the Company or its promoters, nor any placement agent or their respective advisers or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. Neither the Company, its promoters, any placement agent, nor any of their respective advisers or representatives is under any obligation to update or keep current the information contained herein.

This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any advertisement, offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person whether by way of private placement or to the public, in any jurisdiction, including in India, the United States, Australia, Canada or Japan, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment therefor. Investing in securities involves certain risks and potential investors should note that the value of the securities may go down or up. Accordingly, potential investors should obtain and must conduct their own investigation and analysis of the relevant information carefully before investing.

Securities of the Company may not be offered or sold in the United States, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements under the United States Securities Act of 1933, as amended (the "Securities Act"). By reviewing this presentation, you are deemed to have represented and agreed that you and any person you represent are not a U.S. person (as defined in Regulation S under the Securities Act) and are outside of the United States and are not acting for the account or benefit of a U.S. person.

This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, each as amended, or any other applicable law in India.

In this presentation:

• All figures mentioned are for the Company as a standalone entity and are as of March 31, 2020 or for the quarter ended March 31, 2020, unless indicated otherwise.
• FY20 or FY 19-20 or FY 2020 means the Financial Year starting April 1, 2019 and ending March 31, 2020.
• 1 Crore = 10 Million = 100 Lakh.

BHARAT DYNAMICS LIMITED OVERVIEW

BHARAT DYNAMICS LIMITED MISSILE PROGRAM PRESENTS A LARGE OPPORTUNITY

Consistent Procurement Expected In The Next Decade For Guided Missile Systems								With A Key Focus On Tactical Missiles		BDL Addresses 54% Of India's Missiles & Torpedos Market
3.0	2.4	2.6	2.4		Expected Procurement (in USD Bn)	2.5	2.6	Guided Missile Market (in USD Bn)1.70.2	Segment	Market(US$ Bn)	% oftotal	Addressedby BDL (US$Bn)	Addressed by BDL(%)
2.5				2.1	2			2.20.7	CruiseSpecial Mission	Ballistic	0.7	3%	-	0%
2.01.5									Torpedo	Tactical	19.6	80%	11.5	59%
1.0								19.6	Ballistic	Cruise	1.7	7%	-	0%
0.5									Tactical	Special Mission	0.2	1%	-	0%
0.0	2020	2021	2022	2023	2024	2025	2026			Torpedo	2.2	9%	1.6	73%
										Total	24.5	100%	13.1	54%

BDL is positioned to cater to a range of requirements for the Indian Armed Forces – Key Product Proposition

Source: Frost & Sullivan, YSEC Research

BHARAT DYNAMICS LIMITED STRONG PRODUCT SUITE

Source: Company

BHARAT DYNAMICS LIMITED STRONG PRODUCT SUITE

• Offers Zero response time for launching

BHARAT DYNAMICS LIMITED ROBUST MANUFACTURING FACILTIES

7

Products manufactured

• Milan-2T ATGM

• Akash SAM

• LRSAM/MRSAM
• CMDS

Continuously Investing For the Future

Set up of production facility for Man Portable Anti-Tank Guided Missiles (MP-ATGM) , Astra Missile

Acoustic Tank Test Facility at Vishakhapatnam. World class facility for testing underwater weapons and related systems

Automation of production system at Hyderabad to increase production efficiency

In House labs upgraded by procuring state of the art equipment & software tools such as RF Prototyping Software, IP Cores etc

Bhanur Products manufactured • Konkurs-M ATGM • INVAR ATGM

Vishakhapatnam Products manufactured • Torpedo Lightweight/Heavyweight • Torpedo Decoy

BHARAT DYNAMICS LIMITED STRONG FOCUS ON INNOVATION

The Company Has Consistently Partnered with DRDO As Well As Leading Global Defence Players To Assist The Indian Armed Force's In Keeping Its Armory Up To Date

BHARAT DYNAMICS LIMITED ORDER BOOK POSITION

Source: Company

BHARAT DYNAMICS LIMITED SKILLED TEAM LED BY EXPERIENCED MANAGEMENT

Cmde Siddharth Mishra (Retd) Chairman & Managing Director

• ➢ Over 33 years of distinguished service in the Indian Navy
• ➢ Prior to taking charge as CMD of BDL, he was General Manager (Defence) at ECIL, Hyderabad where he steered various 'Make-in-India' programmes in defence and other sectors
• ➢ He has previously held varied Operational and Staff appointments, in addition to heading four major groups at ECIL
• ➢ At Naval Headquarters, he was instrumental in inducting and managing state-of- the- art technology, including policy framing and was in the core team and represented Indian Navy for induction of the Air Craft Carrier into the Services

Shri P.Radhakrishna Director (Production)

• ➢ Prior to his appointment, he served as a General Manager in the Bhanur Unit of BDL and established production lines for various products
• ➢ He played a key role in modernizing and establishing state of the art manufacturing facilities to improve productivity
• ➢ He holds an M.Tech in Industrial Engineering & Management from JNTU, Hyderabad and a BE in Mechanical Engineering from Nagarjune University

Source: Company Website

Whole Time Directors

Shri Srinivasulu Nuka Director (Finance)

• ➢ Shri Nuka Srinivasulu assumed charge on 1 July 2020 as Director (Finance). He has a experience of over 30 years, including 24 years at BDL.
• ➢ Prior to his new assignment, he has served as General Manager (Finance) at BDL.
• ➢ During his tenure at BDL, he has played an instrumental role in coordinating with anchor investors for the maiden IPO of the Company,
• ➢ He holds MBA in Finance from Osmania University, Hyderabad.

Shri N P Diwakar Director (Technical)

• ➢ Rich experience span of 28 years in various Missile programs such as Prithvi, Akash & ATGMs
• ➢ Instrumental in Establishing of production lines and man power planning of Akash Missiles and Konkurs Missiles
• ➢ Holds a B.E., in Mechanical Engineering from Osmania University, Hyderabad

BHARAT DYNAMICS LIMITED BACKED BY AN EXPERIENCED BOARD

Government Directors

Shri AK Mahajan, Addl FA (AK) & JS Government Director

Shri MSR Prasad DG (MSS) Government Director

Independent Directors

Shri K.S.Sampath Shri Ajay Nath Smt K Latha Narsimhamurthy

IMPACT OF COVID – 19 PANDEMIC

Status of Plants Business Impact Liquidity Partnering the Nation Company's Manufacturing Facilities resumed with 33% staff w.e.f May 4, 2020 and with 50% staff from May 20, 2020 in compliance with MHA, GOI guidelines, post the lockdown • Q1FY21 Revenue & Profitability to be impacted. • Company expects the business situation to normalize in the Second half of the year. Company is well positioned to fulfill its obligations and existing contract/arrangements • Company's capital and banking facilities remain intact. The company is debt free and is able to make its own financing arrangements through internal accruals. • The company does not foresee any problems in realizing receivables in the year • During the Lockdown, the Company Entered into a MoU with IIT, Kanpur, NoCCA Robotics Private Ltd and Foundation for Innovation & Research in Science & Technology • Purpose of design, development and manufacture of Invasive Ventilators

BHARAT DYNAMICS LIMITED KEY FINANCIAL HIGHLIGHTS

EBITDA (in INR Cr) & EBITDA Margin

PAT (in INR Cr) Net Worth (in INR Cr)

KEY FINANCIAL HIGHLIGHTS

BHARAT DYNAMICS LIMITED

33.9% 26.2% 25.4% 20.0% 21.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% FY16 FY17 FY18 FY19 FY20

Return on Equity (in %)

Total Dividend(in INR Cr) & Dividend Payout Ratio

THANK YOU