ZEN TECHNOLOGIES LIMITED

Certified ISO 9001:2015, ISO 27001:2013, ISO 14001:2015, CMMI ML5 Regd. Office : 8-42, Industrial Estate, Sanathnagar Hyderabad - 500 018, Telangana, India Phone: +914023813281, Fax No: +914023813694 Email: [email protected] Website: www.zen.in Corporate Identity Number: L72200TG1993PLC015939

Date: 301" January 2021

To BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400001 Through: BSE Listing Centre Security Code: 533339

To National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Through: NEAPS Symbol/Security ID: ZENTEC

Dear Sir/Madam,

Sub: Earnings Presentation Q3 FY 2021

Please find attached earnings presentation for the quarter ended Dec 31, 2020.

The above information is also available on the website of the Company: https://www.zentechnologies.com/corporate-announcements

This is for your kind information and records.

Thanking You.

Yours sincerely,

For Ze._ nci,nologies Limited

Works: Plot 36, Hardware Park, Near Shamshabad International Airport, Hyderabad - 501 510, Telangana, India

Zen Technologies Limited Earnings Presentation Q3FY21

INDIA'S LEADING DEFENCE TRAINING SOLUTION PROVIDER

NSE: ZENTEC BLOOMBERG: ZEN IN REUTERS: ZETE .BO

Inside the Document

Management Commentary

ZEN TECHNOLOGIES LIMITED

Q3FY21 Earnings Presentation

Commenting on the results, Mr. Ashok Atluri – Chairman and Managing Director & CFO, said:

"For us financial year 2020-21 started on a subdued note and has indeed been a challenging year. In Q3FY21 the Revenue from Operations was lower than expected due to a delay in the release of the Modernization Fund from the Central Government. We expect the Government to release these funds soon which in turn should help us bag some orders.

In these challenging times, we are focusing on strengthening our relationships with existing clients and doing the groundwork for development of new products. I would like to take this opportunity to share with you that we have developed 4 new products which should augur well for the company's growth in the coming future. These products are:

1. Anti Drone Systems
1. Integrated Air Defence Combat Simulators
1. Drone Simulators
1. Anti-Drone Simulators

We expect these products to start contributing to our revenues in the next 9-12 months, especially our Anti-Drone Systems & Simulators which are positioned to take benefit from a huge upcoming opportunity, given the recent change in the nature of warfare.

While the operating environment may continue to remain challenging in the near term, we remain confident that we will bear the fruits of our investments in the long term. We will continue to broaden the range of our offerings by continuing to invest in extensive R&D. With increased focus of the Government on curbing defence imports and making India self reliant, we are wellpositioned to benefit from the upcoming opportunities."

Quarterly Highlights

All data ₹ in crores

2.69

Q3FY21 Q3FY21

QUARTER HIGHLIGHTS:Q3FY21

Revenue Contribution from Sale of Equipment: ₹11.8 crores.

Revenue Contribution from Annual Maintenance Contracts: ₹ 4.08 crores.

Revenue contribution from Exports: 4.13 crores.

Revenue contribution from Domestic: 7.67 crores.

Order Book Status

Way forward

INCREASING PREDICTABILITY IN TURNOVER:

We are working towards strategically positioning the business model to reduce lumpiness. The sale of equipment done in the last couple of years will start contributing to the top line in terms of Annual Maintenance Contracts.

EQUIPMENT SALE ORDER WINS:

In the next couple of years the contributions from AMC stream will cover the fixed operating expenses of the business. This will provide stability and predictability to the business operation. The huge order wins of equipment sale can then offer huge operating leverage and boost to our bottom line.

STRONG GOVERNMENT SUPPORT TO ACT AS TAILWIND:

The GOI has formulated several measures along with strict implementation timelines. The governments keen focus on Make in India and Atmanirbhar Bharat campaign has created a conducive environment to make in India for the defence industry. This should act as a strong tailwind going forward

FOCUS ON NEW PRODUCTS:

The continuous investments in R&D ensure that the products are technologically advanced and suited for the customer requirements. This coupled with more than 2 decades of track record of delivering value to our customers has not only made us the preferred partner of choice but has also ensured enhanced share of their wallet.

ZEN TECHNOLOGIES LIMITED

Q3FY21 Earnings Presentation

Financial Statement Summary

SUMMARY OF STANDALONE PROFIT & LOSS STATEMENT All data ₹ in crores (excluding EPS)

Particulars	Q3FY21	Q2FY21	Q3FY20
Revenue from Operations	15.88	10.62	32.36
Other Income	0.71	0.71	0.42
Total Income	16.59	11.33	32.79
Total Operating Expenses	11.81	8.38	17.51
EBITDA (excluding other income)	4.07	2.23	14.85
EBITDA Margins	25.62%	21.04%	45.89%
Interest Cost	0.15	0.48	0.55
Depreciation	1.00	1.00	0.93
Profit Before Tax	3.63	1.46	13.79
Profit After Tax	2.69	0.77	10.48
EPS	0.34	0.1	1.36

Financial Statement Summary

SUMMARY OF CONSOLIDATED PROFIT & LOSS STATEMENT All data ₹ in crores (excluding EPS)

Particulars	Q3FY21	Q2FY21	Q3FY20
Revenue from Operations	16.57	12.35	32.99
Other Income	0.73	0.71	0.42
Total Income	17.30	13.06	33.41
Total Operating Expenses	13.20	9.72	18.83
EBITDA (excluding other income)	3.37	2.63	14.16
EBITDA Margins	20.32%	21.30%	42.91%
Interest Cost	0.17	0.50	0.58
Depreciation	1.23	1.22	1.09
Profit Before Tax	2.69	1.62	12.92
Profit After Tax	1.75	0.92	9.77
EPS	0.29	0.1	1.33

Disclaimer

This document which have been prepared by Zen Technologies 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 what so ever. 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 document 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 Document. This Document 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 Document is expressly excluded.

Certain matters discussed in this Document may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and worldwide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Document. The Company assumes no obligation to update any forward-looking information contained in this Document. Any forward-looking statements and projections made by third parties included in this Document are not adopted by the Company and the Company is not responsible for such third-party statements and projections.

Let's connect

HANSRAJ SINGH RAJPUT

[email protected]

Company Secretary & Compliance Officer Zen Technologies Limited

DIWAKAR PINGLE

Investor Relations Advisor Christensen IR

ABHISHEK MEHRA

Investor Relations Advisor The Investment Lab

INTRODUCTORY & Q3FY21 CONFERENCE CALL

We cordially invite you to a conference call with the management of Zen Technologies Limited to discuss the Q3FY21 Result of the company.

Management Participants

Mr. Ashok Atluri (Chairman, Managing Director & CFO)

Conference Numbers: Access
Universal DialIn	+91 22 6280 1341
	+91 22 7115 8242
Local DialIn
Available all over India	+91-7045671221
International Toll Free
Hong Kong	800964448
Singapore	8001012045
UK	08081011573
USA	18667462133
International Toll
Hong Kong	+852 30186877
Singapore	+65 31575746
UK	+44 2034785524
USA	+1 3233868721

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Zen Technologies Ltd. Investor Presentation 2021

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