Thermax Ltd. — Investor Presentation 2021

May 25, 2021

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May 25, 2021

To The Secretary National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block G, PJ Towers, Dalal Street Bandra Kurla Complex, Mumbai: 400 001 Bandra (E) Mumbai – 400 051 Company Scrip Code: 500411 Company Scrip Code: THERMAX EQ

Sub: Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015- Investor Presentation

Dear Sir,

In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable provisions, please find enclosed the Investor Presentation for Q4 FY 20-21.

You are requested to take note of the same.

Thanking you,

Yours faithfully, For THERMAX LIMITED

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Kedar P. Phadke Company Secretary Membership No: F3349

Encl: As above

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Thermax Limited – Analyst Call Q4 FY20-21

Energy | Environment | Chemical

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Our Vision

To be a globally respected high performance organisation offering sustainable solutions in energy and the environment

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Disclaimer

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This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including global economic conditions, and the economic conditions of the regions and industries that are major markets for Thermax. These expectations, estimates and projections are generally identifiable by statements containing words such as “expects”, “believes”, “estimates”, “targets”, “plans”, “outlook” or similar expressions.

There are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this presentation and which could affect our ability to achieve any or all of our stated targets. The important factors that could cause such differences include, among others:

• business risks associated with the volatile global economic environment and political conditions

• costs associated with compliance activities

• market acceptance of new products and services

• changes in governmental regulations and currency exchange rates, and

• such other factors as may be discussed from time to time in Thermax Ltd.'s filings with the Securities and Exchange Board of India (SEBI), including its Annual Report

Energy | Environment | Chemical

www.thermaxglobal.com

Managing resurgence of COVID crisis

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• More than 600 vaccinated in a two vaccination camp in Pune for 45+ year old employees, workmen, contractors, and families

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• Supported MCCIA’s ‘Mission Vayu’ to airlift 250 ventilators and 4,000 oxygen concentrators from Singapore for donating to hospitals in the Maharashtra’s worst affected areas

• Supporting contractors and migrant workers employed at Thermax factories and project sites in numerous ways

• All Thermax facilities operational in strict adherence with COVID guidelines, albeit at reduced efficiencies

Energy | Environment | Chemical

www.thermaxglobal.com

Thermax Q4 FY2020-21 Results

Summary of group’s financial performance

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	Q4/2020-21 (in crore)	Q4/2020-21 vs Q4/2019-20 (%)
Operating Revenue	1,575	+ 19%
Profit Before Tax and exceptional item (PBT)	140	+ 137%
Profit After Tax and exceptional item (PAT)	107	+ 174.3%
Order Booking	1,497	+ 57.2%
Order Balance	5,227	-
Treasury Investments	1,886	+ 57.4%

Better performance in Q4 FY21 relative to COVID impacted Q4 FY20

Energy | Environment | Chemical

www.thermaxglobal.com

Q4 - Order Book Status

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Others
Paper/Rubber 7% Chemical
/Wood 3% 20%
Pharma
3%
Sugar / Distillery
5%
Power
6%
Cement
Fertiliser and
19%
Agro
8%
Food &
Beverages
Refinery and
8%
Metals and Steel Petrochemicals
10% 11%
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• Strong order book in Q4 at Rs. 1,497 crore (Rs. 952 crore) aided by broad based industrial recovery

• Energy segment saw improved order booking at Rs 1,173 crore with increased thrust on sustainability

• Improved performance of the product businesses and channel business

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Energy | Environment | Chemical
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www.thermaxglobal.com

Business Highlights

Energy Segment

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• Large boilers and heater business (TBWES) booked 100% green order for the second consecutive quarter

15 MW waste heat recovery power plant for a

steel major in eastern India

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4 gas driven absorption chiller heaters (2 x 410 TR & 2 X 610 TR) for a wiring systems company in Tunisia

Green steam supply to a tyre major under the Build-Own-Operate model using 18 TPH boiler

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Two Closed Loop Cooling Towers (CLCT) for a global major in specialty films manufacturing

• Strong quarter for the packaged boiler business

• First boiler order from Turkey

• Order for a 31 MW energy plant from a MDF manufacturer

• Highest quarterly output across manufacturing plants in the year

www.thermaxglobal.com

Energy | Environment | Chemical

Business Highlights Environment Segment

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Pre-treatment Demineralisation plant for a steel major

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• First-of-a-kind order from a leading refinery in India for a specialised resin-based unit for improving the performance of existing cycle-water treatment units in mono-ethylene glycol (MEG) plant

• Focus on desalination, installed a 2 MLD seawater desalination plant at a distillery in a water scarce region in south India, making the industry water independent

• Introduced differentiated services programmes for focused customer offerings in urban and industrial segments from the Water and Waste Solutions business

• Received first order for Flue Gas Desulphurisation system from a leading sugar refinery in Saudi Arabia

• First-of-its-kind air pollution control equipment orders for fuels such as lignin and biofuel from oil & gas sector in India

Energy | Environment | Chemical

www.thermaxglobal.com

Business Highlights Chemical Segment

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• Chemical segment continued its strong performance with a 22% growth in PBIT vis-à-vis Q4 FY20

• Specialty resins saw a growth of 25.4% in Q4 and 62.8% annually, owing to strong demand from USA and Europe markets.

• Bagged new and repeat orders from Indian metal, steel and refinery majors for performance chemicals

• Construction Chemicals business received brand approval to supply chemicals for a government infrastructure project in Gujarat

Maxshield®Swellbar - a hydrophilic construction joint water bar and sealant for creating an impenetrable barrier to prevent water ingress in old and new structures

Energy | Environment | Chemical

www.thermaxglobal.com

Technology Update

Waste to Energy

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Representative image
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• Thermax Babcock & Wilcox Energy Solutions Private Limited (TBWES), a wholly-owned subsidiary of Thermax, signed a know-how transfer and license agreement with German-based Steinmüller Babcock Environment GmbH (SBE) for Waste to Energy technology



• As a part of the agreement, TBWES will design, engineer, manufacture and sell Municipal Solid Waste (MSW) fired waste-to-energy solutions by incorporating SBE’s well-established grate and boiler technology

• The tie-up will help enhance Thermax’s involvement in the waste to energy application for solving the dual challenge of urbanisation and deteriorating environment

Energy | Environment | Chemical

www.thermaxglobal.com

Technology Update

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Solar

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Thermax has announced an agreement with Power Roll, a developer of unique, low-cost and lightweight flexible solar film, to develop the market for solar films in India

• Both the companies to jointly assess the market potential for scale manufacturing and its deployment in the country

Flexible Solar PV manufacturing Image Courtesy – Power Roll

Energy | Environment | Chemical

www.thermaxglobal.com

Technology Updates

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Fuel Cell

• Thermax partnered with Defence Research & Development Organisation (DRDO) in developing homegrown Air Independent Propulsion (AIP) system for the Indian Navy’s Scorpene class submarines

• A crucial milestone of the programme was the demonstration of a land-based prototype to the Indian Navy on 8[th] March, 2021, which was successfully completed

3D model of a fuel cell

Energy | Environment | Chemical

www.thermaxglobal.com

Awards & Accolades

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Thermax was recognised with the ‘Special Jury Citation’ award at the 7th edition of The India Risk Management Awards, conducted by CNBC-TV18. Thermax bagged the award for demonstrating exemplary execution capabilities for its largest export order from the African Oil Refinery

Thermax received two national level awards from the Confederation of Indian Industry (CII) for showcasing best practices in maintenance management at the National Maintenance Circle Competition organised by them

Energy | Environment | Chemical

www.thermaxglobal.com

Consolidated Performance Summary by Segment

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Segment	Order Booking	Order Booking	Order Balance	Order Balance
	Q4, 2021	YOY% Change	YTD MAR 2021	YOY% Change
Energy	1,173	71%	3,717	5%
Environment	204	22%	1,431	-11%
Chemical	120	20%	79	-1%
Total	1,497	57%	5,227	-0.2%

The order booking across segments have exceeded pre-COVID levels. However, the outlook seems clouded due to the second COVID wave

Note: Values are in Rs. crore

Energy | Environment | Chemical

www.thermaxglobal.com

Consolidated Performance Indicators

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**Q3, 2021 **	Performance Indicator	**Q4, 2021 **	**Q4, 2020 **	**YTD MAR 21 **	YTD MAR 20
1,565	Order Booking	1,497	952	4,783	5,498
5,208	Order Balance	5,227	5,238	5,227	5,238
1,411	Revenue	1,575	1,323	4,791	5,731
141	Profit Before Tax and Exceptional(PBT)	140	59	328	375
10.0%	PBT before Exceptional %	8.9%	4.4%	6.8%	6.5%
(28)	Exceptional Item	-	-	(53)	-
113	Profit Before Tax(PBT)	140	59	275	375
8.0%	PBT %	8.9%	4.4%	5.7%	6.5%
83	Profit After Tax(PAT)	107	39	207	212
5.9%	PAT %	6.8%	3.0%	4.3%	3.7%

Note: Values are in Rs. crore and ratios are in %

Energy | Environment | Chemical

www.thermaxglobal.com

Consolidated Segment Performance*

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	For Q4, 2021	For Q4, 2021	For Q4, 2021		For Q4, 2020	For Q4, 2020	For Q4, 2020		YTD MAR 21	YTD MAR 21	YTD MAR 21		YTD MAR 20	YTD MAR 20	YTD MAR 20
Segments	Revenue	PBIT	PBIT%		Revenue	PBIT	PBIT%		Revenue	PBIT	PBIT%		Revenue	PBIT	PBIT%
Energy	1,175	109	9.3%		1,051	32	3.1%		3,627	218	6.0%		4,677	249	5.3%
Environment	302	20	6.6%		199	16	8.2%		794	38	4.7%		722	38	5.3%
Chemical	119	22	18.5%		96	18	18.6%		429	103	24.1%		421	78	18.5%

*PBIT Before exceptional items & unallocated overheads

Note: Values are in Rs. crore and ratios are in %

Energy | Environment | Chemical

www.thermaxglobal.com

Quarterly Trend - Consolidated

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Energy Environment
OB RR PBT
OB RR PBT
800 35
2,000 160 700 30
1,800 140 25
1,600 120 600 20
1,400 100 500 15
1,200 80
400 10
1,000 60
800 40 300 5
600 20 200 -
400 - -5
200 -20 100 -10
- -40 - -15
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY1819 FY1920 FY2021 FY1819 FY1920 FY2021
OB 1,025 1,153 903 815 980 799 686 412 848 1,291 1,173 OB 204 212 172 286 633 691 167 104 155 172 204
RR 1,145 1,135 1,718 1,121 1,341 1,121 1,051 500 886 1,066 1,175 RR 201 213 267 197 179 197 199 84 155 253 302
PBT 83 61 137 64 83 65 32 -26 39 97 109 PBT 6 15 31 4 8 10 16 -10 10 18 20
PBT
PBT
Value in Rs. Crore
Value in Rs. Crore
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Chemical OB RR PBT
140 40
120 35
100 30
25
80
20
60
15
40 10
20 5
- -
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY1819 FY1920 FY2021
OB 115 115 82 116 109 116 100 92 111 102 120
RR 104 112 103 117 110 117 96 84 115 111 119
PBT 16 17 17 29 20 29 18 17 35 29 22
PBT
Value in Rs. Crore
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OB	Order Booking
RR	Revenue Recognition
PBT	Segment PBIT before exceptional & Unallocated Overheads

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Energy | Environment | Chemical
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www.thermaxglobal.com

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Domestic – Export Business Performance
FY2019-20 YTD MAR FY2020-21 Q4 FY2020-21
Energy 922 251
Energy 2,132 1,148 Energy 2,693 1,030
Order
Environment 179 25
Book Environment 1,695 82 Environment 555 80
Chemical 76
Chemical 252
Chemical 240 44
172
201
Energy 3,025 1,652 Energy 2,259 1,369 Energy 824 351
Revenue Environment 634 88 Environment 735 60 Environment 288 14
Chemical 229 Chemical 247 Chemical 67
193 183 52
Energy 2,211 1,346 Energy 2,825 892
Order Domestic
Balance Environment 1,552 49 Environment 1,372 59
Export
Chemical 48 Chemical 48 All values are in Rs. crore
30
32
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Energy | Environment | Chemical
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www.thermaxglobal.com
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Environment and Industry Outlook

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• Relapse of COVID-19 cases in India and South-East Asia is posing risks

• Post the impact of the pandemic, US, UK and Europe markets are expected to grow in the coming quarters

• India’s PMI for manufacturing dropped in March to 55.5 from 57.5, which is still considered good; COVID-19 is a key risk

• GDP forecasts is being relooked at due to the second wave of COVID

Global Pandemic Input Cost Effect Market Demand Sentiments

• Commodity costs are on increasing trend

• Steel price increase continues unabated

• Inputs raw material costs to chemical has witnessed a surge – styrene and methanol prices on rise

• Select industrial sector such as steel, cement continue to perform, some sectors were impacted with the recurrence of COVID-19

• Project completions to be delayed due the lockdown in some regions and may impact new investments

• Indian Government Union Budget announcement for infrastructure & development and PLI package will support demand in coming quarters

Source: RBI, MOSPI, HIS Markit

Energy | Environment | Chemical

www.thermaxglobal.com

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Thank You