WCL Corporate Presentation World s 2 nd Largest Pipe Manufacturer

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1 1 WCL Corporate Presentation World s 2 nd Largest Pipe Manufacturer January 2014

2 2 On The Path of Global Leadership WELSPUN CITY, ANJAR

3 3 WCL An Introduction Flagship company of the USD 3.5 Billion Welspun Group 2 nd biggest large diameter pipe company as ranked by FT in 2007 International footprint with manufacturing and marketing facilities worldwide offering a One-Stop-Solution for all line pipe requirements Partner of Choice for more than 50 Oil & Gas Giants across the globe; geographically diverse client base including Chevron, Exxon Mobil, Saudi Aramco, British Gas, Kinder Morgan etc Accredited with ISO 9001, ISO and OHSAS certifications Total Revenues (Global Pipes and Plates) (INR million) 90, ,000 78,637 71,961 80,000 60,000 44,282 40,000 20,000 FY 11 FY 12 FY 13 H1 FY 14 Operational EBITDA Global Pipes and Plates (INR million) Strong order book of 521 K MT at Rs. 35 Billion Shareholding Pattern as on Sept 30, 2013 Public, Banks, Financial Institutions and others 39% FII 6% DII 9% GDR 9% Promoters 37% 14,500 12,000 9,500 7,000 4,500 2,000 13,900 9,732 8,407 7,339 FY 11 FY 12 FY 13 H1 FY14

4 4 WCL Investment Rationale Global Scale Strong Balance Sheet WCL Global Customer Base & Accreditations Local Manufacturing Presence in Key Markets Strong Track Record

8 5 The Growth Story Revenue in INR Million Growth - Achieved 1 mn ton mark in Production, Sales and 108,701 2013 Order Booking for the year - HFIW Plant in US completed; secured maiden orders 89,766

5 8 5 The Growth Story Revenue in INR Million Growth - Achieved 1 mn ton mark in Production, Sales and 108, Order Booking for the year - HFIW Plant in US completed; secured maiden orders 89, ,000 tons LSAW capacity in Anjar commissioned 80, Saudi Plant - capacity of 300,000 MTPA operational 100,000 MTPA HSAW Plant at Mandya operational 73, Anjar capacity expansion of 350,000 tons 350,000 tons US Spiral Mill commissioned 57, , ,000 tons Spiral Mill commissioned Recognized 2 nd largest pipe producer in the world by FT, UK 26,834 18, Anjar Facility, A Key Contributor Approvals from O&G majors for new facility 10, New Capacity at Anjar, Gujarat for HSAW & Coating 8, Merger of coating J.V. with WCL 2, Pipe Coating in JV with EUPEC, Germany LSAW Plant in Dahej, Gujarat commissioned HSAW, Plant in Dahej, Gujarat commissioned Incorporated 1995 Embarked on a Growth Journey

6 Industry View Improving Outlook Industry Structure - Relatively Few Major Players Highly capital intensive industry with high barriers to entry Reliability and reputation for excellence are paramount Brighter Prospects for the industry with oil prices at sustainable levels Global Demand Business potential till 2018 : US$ 433 bn (Source: Simdex ) Shale Gas production in US: Set to rise to 13.6 trn cu ft by 2035 from 5.0 trn cu ft in 2010 Strong potential demand from Canada in the medium term More than 97% of Canada s crude exports and 63% of natural gas exports currently go to the US, mainly through pipelines This is expected to reduce over a period of time as US achieves self sufficiency, thanks to the shale boom Canada will have to build pipelines to take its oil and gas to new markets and de-risk its economy Iraq Pipelines Undergoing major reconstruction post the war Pipelines need to be replaced for exports to grow European Pipelines Russian gas needs to be transported to continental Europe Welspun is well placed, with global clients and state-of-the-art technology, to capitalize on this opportunity International Demand Outlook (Future Pipeline Projects) Region Projects Total Length (kms) Quantity (MMT) (1) Business Potential (US$ Bn) North America , Latin America 57 35, Europe , Africa 82 32, Middle East , Asia 91 52, Australasia 51 20, Total , Source: August 2013 data Share of Expected Demand Asia 19% Middle East 10% Australasia 7% Africa 12% Source: Aug 2013 data update 1. Conversion rate of 200 tons/ km Europe 14% North America 25% Latin America 13% 6

7 7 Global Scale One of the largest line pipe manufacturers in the world Rated 2 nd largest Pipe Company in 2007 (Source: FT) State-of-the-art manufacturing facilities in India, the US and Saudi Arabia Current pipe capacity of MTPA across LSAW, HSAW and ERW/HFIW pipes Pipe capacity of 1.5 MTPA Offers coating, bending and double jointing facilities thereby offering a 360 degree pipe solution to its customers World s largest diameter steel pipe producers (1) 2007 output (million tonnes) Salzgitter/Europipe* (Germany) 1.3 Welspun (India) 1.0 JFE (Japan) 0.7 Sumitomo (Japan) 0.7 Evraz** (Russia) 0.6 Nippon Steel (Japan) 0.6 Riva (Italy) 0.6 PSL (India) 0.5 JSW (India) 0.3 ArcelorMittal (Luxembourg) 0.2 Stupp (US) 0.1 Tata/Corus (India/UK/Netherlands) 0.1 Others*** 7.3 Note 1. As reported by Financial Times on April 13, 2008

8 8 Pipes & Plates - One Stop shop for Line Pipes PIPE SOLUTIONS PLATES LSAW Anjar (India) : 350 K MT Dahej (India) : 350 K MT HSAW Anjar (India) : 500 K MT Dahej (India) : 50 K MT Mandya (India): 150 K MT Dammam (Saudi Arabia) : 300 K MT Little Rock (USA) : 350 KMT ERW Anjar (India) : 200 K MT Little Rock (USA) : 175 K MT Coating Anjar (India) Little Rock (USA) Dammam (Saudi Arabia) Plates Anjar (India) : 1500 K MT

9 State of the Art Global Manufacturing Facilities LSAW Pipes Dahej & Anjar ERW Pipes - Anjar HSAW Pipes Anjar,Dahej & Mandya Pipe Coating Anjar, US and Dammam 9

10 10 State of the Art Global Manufacturing Facilities Plates - Anjar HSAW pipes Little Rock US HSAW pipes Dammam, Saudi Skilled Workforce across all locations

11 Welspun s Worldwide Reach AMERICAS EUROPE & CIS Canada Czech Rep. Russia USA Mexico Bahamas Trinidad & Tobago Venezuela Colombia Peru Spain Algeria Nigeria Egypt Sudan Iraq Qatar UAE Saudi Oman India DOMESTIC China Bangladesh Thailand Malaysia SOUTH EAST ASIA AUSTRALIA Indonesia Bolivia Plant Locations Marketing Offices MENA Anjar, India Mumbai, India Dahej, India Mandya, India Little Rock, USA Dammam, Saudi Arabia Delhi, India Houston, USA Dammam, Saudi Arabia Dubai, UAE Plants Mktg Office Countries served Source: Company 11

12 12 Global Accreditations - Strong Relationship with O&G Majors AGIP, Jordan Al WASIT, UAE BECHTEL, US NTPC, India ONGC, India PETRO CHINA Accreditation Process A significant entry barrier BRITISH GAS PETRONAS, Malaysia BRITISH PETROLEUM PDO, Oman BOARDWALK CHINA NATIONAL PETROLEUM CORPORATION CPMEC, China CHEVRON, US (Framework Agreement) DOW, US ELPASO, US EGYPTIAN GENERAL PETROLEUM CORPORATION ENTERPRISE, US EXXON-MOBIL (GOLDEN PASS PIPELINE), US PGN, Indonesia PTTEP, Thailand QATAR PETROLEUM RELIANCE INDUSTRIES LIMITED, India SAIPEM, Italy SAUDI ARAMCO SHELL, US STOLT OFFSHORE Acergy, UK SONATRACH, Algeria Setting up plant 1-2 years Seeking API approval 1 year Approval from major domestic / international oil and gas companies 2 3 years ENBRIDGE, Canada STATOIL, Europe GROUP FIVE, Saudi Arabia GAIL, India SWCC, India TOTAL, France 3-5 years GASCO, UAE TECHNIP, France GASCO, Egypt TRANSCANADA (Long Term Contract) GAZPROM, Russia (STROYTRANSGAZ) UNOCAL, US KINDER MORGAN, US PERU LNG, US (HUNT OIL) N.A.O.C. - Nigeria VIETSOPETRO, Russia/Vietnam NPCC, UAE WCL marquee clients - Exxon Mobil, Kinder Morgan, TCPL and GAIL Long term contract - TransCanada & Statoil Framework Agreement Chevron, Statoil

In '000 MT In '000 MT 13 Strong track record Enviable track record of contributing to some of the marquee pipe projects in the world Longest, Deepest, Highest and Heaviest pipelines of the world

13 In '000 MT In '000 MT 13 Strong track record Enviable track record of contributing to some of the marquee pipe projects in the world Longest, Deepest, Highest and Heaviest pipelines of the world Welspun has contributed in all of them Consistent sales and production record Exceeded 1 mn tons in sales and production in FY12-13 Continuous repeat orders from key clients Order booking in FY12-13 exceeded 1 mn tons Current Order book (29th Oct 2013) at 521 K MT (INR 35 billion) Current Pipe Order Book Geographical Distribution by Volume India, 32% South East Asia, 5% MENA, 18% By MT Americas, 46% 1,200 1, ,200 1, Pipe Volumes Consistent sales and production Sales , FY 10 FY 11 FY 12 FY 13 H1 FY14 Production 958 1, FY 10 FY 11 FY 12 FY 13 H1 FY14 *

14 Proven and Experienced Management Team Mr. B.K.

Today, with his entrepreneurial ability and professionalism, he has built up one of the most admired

Akhil Jindal serves as Director, Group & Finance and Strategy. Mr.

large fund raisings, cross border acquisitions, private equity raisings and financial closure of projects.

A Chartered Accountant by profession and with over 25 years of experience, he has expertise varying from

He has over 30 years of rich experience in the Finance Function.

Braja K Mishra is the Managing Director of Welspun Corp and is a prominent figure in the industry with

He has over 25 years of experience and possesses immense critical know-how about the pipe and plate

With over 24 years experience mostly in the Oil & Gas Pipe Industry, Mr.

Mintoo Bhandari, serves as a Director on the Board (Nominee of a shareholder). Mr.

(India) Ltd. Mr. Vipul Mathur is the Director - Sales & Marketing (Pipes).

14 14 Proven and Experienced Management Team Mr. B.K. Goenka is the Chairman, and the chief architect of the Welspun Group. Today, with his entrepreneurial ability and professionalism, he has built up one of the most admired business conglomerates in India Mr. Akhil Jindal serves as Director, Group & Finance and Strategy. Mr. Jindal is responsible for strategic inorganic/organic initiatives within the Group and has spearheaded large fund raisings, cross border acquisitions, private equity raisings and financial closure of projects. Mr. R.R. Mandawewala is the Group Managing Director, a key contributor in Welspun s journey. A Chartered Accountant by profession and with over 25 years of experience, he has expertise varying from Textiles to SAW pipes. Mr. S. Krishnan serves as Chief Financial Officer. He has over 30 years of rich experience in the Finance Function. He also has experience of leading the IR team in his previous companies. Mr. Braja K Mishra is the Managing Director of Welspun Corp and is a prominent figure in the industry with long and varied experience. He has over 25 years of experience and possesses immense critical know-how about the pipe and plate industry Mr. Prashant Mukherjee serves as Director of Welded Pipes. With over 24 years experience mostly in the Oil & Gas Pipe Industry, Mr. Mukherjee has been instrumental in implementing expansion projects in the Company Mr. Mintoo Bhandari, serves as a Director on the Board (Nominee of a shareholder). Mr. Bhandari also serves on the Board of Directors of SOURCECORP, Dish TV India Limited and Wire & Wireless (India) Ltd. Mr. Vipul Mathur is the Director - Sales & Marketing (Pipes). A Science Graduate and Masters in Business Administration (MBA) in Marketing, he has a rich experience of over 16 years in the Oil & Gas Pipe Industry Mr. David J. Delie serves as President Welspun Tubular LLC. He has an extensive 33-year background in the steel and pipe industry. Mr Delie has served on the Board of Directors of Berg Steel Pipe Corp., EB Pipe Coating, Inc., the American Iron & Steel Institute (AISI). Mr. Akbar Umatiya is Vice President & Unit Head of Welspun Middle East LLC (Saudi Plant). He is a technocrat Professional having more than 26 years of versatile experience in various fields like Operations, Project Execution and Marketing in India and Overseas.

15 15 Welspun Pipes and Plates - Financial Snapshot P&L Extract (In INR Mn) Particulars FY 11 FY12 FY13 H1 FY 14 Net sales 78,637 71,961 90,832 44,282 Operational EBITDA 13,900 9,732 8,407 7,339 Reported EBITDA 13,863 10,178 9,947 4,997 PBT before exceptional 9,290 4,386 2,832 1,328 Cash PAT 8,718 7,008 7,294 4,532 Note : a) Cash PAT = PBT before exceptionals + Depreciation Current taxes (incl MAT credit, if any) + Post-tax Forex loss /(gain) b) Operational EBITDA = Reported EBITDA Non-operational income + Forex loss/(gain)

16 16 Welspun Pipes and Plates - Financial Snapshot Balance sheet Extract (INR mn) Key Balance Sheet Nos FY12 FY13 H1 FY14 Networth 26,112 27,546 28,198 Gross Debt 35,737 38,891 40,039 Cash & Cash Equivalent 19,507 15,999 15,027 Net Debt 16,230 22,892 25,012 Fixed Assets 47,607 51,020 53,290 Key Ratios Net Debt / Equity 0.62 x 0.83 x 0.89 x Fixed Asset Coverage Ratio 2.15 x 1.63 x 1.70 x Net debt / EBITDA 1.59 x 2.30 x 2.50 x Current Ratio 1.27 x 1.43 x 1.51 x

17 Key Developments in Business Re-organisation WCL is in the process of demerging its non-pipe & plate business into a separate company Welspun Enterprises Ltd (WEPL) WCL will focus solely on the pipe and plate business post-demerger Current status: Received NOC from Stock Exchanges & SEBI Unanimous Shareholders and Creditors Approval received on 22 nd Oct 2013 Demerger process expected to be completed by January

18 18 Journey to become the most respected Pipe Company in the World How Welspun will sustain How Welspun reached here Technology Product profile Approvals Accreditations Serving challenging orders People Zero Harm - Safety Niche markets -deep offshore/ sour pipelines Stringent client specifications Local presence in key markets Highly trained workforce Zero Tolerance Quality Standard Humble beginnings Today The future

19 19 CSR and Environmental Leadership When Industry Cares. The Community Smiles C O R E F O C U S Education CSR Initiatives Empowerment & Health Implementation Mediums Environment O U T R E A C H Welspun Programs Tie-ups with Non Governmental Organizations / Developmental Agencies/ Institutions Facilitating Government Initiatives

20 20 Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements, including those relating to general business plans and strategy of Welspun Corp. Limited ( WCL"), its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. Actual results ma y differ materially from these forward-looking statements due to a number of factors, inter alia including future changes or developments in WCL's business, its competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer invitation, or a solicitation of any offer, to purchase or sell, any securities o f WCL and should not be considered or construed in any manner whatsoever as a recommendation that any person should subscribe for or purchase any of WCL's securities. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation thereto shall be deemed to constitute an offer of or an invitation by or on behalf of WCL to subscribe for or purchase any of its securities. WCL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liabi lity with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation. WCL assumes n o responsibility to publicly amend, modify or revise any forward looking statements contained herein, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained her ein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. WCL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation may not be copied and disseminated in any manner. THE INFORMATION PRESENTED HERE IS NOT AN OFFER INVITATION OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY SHARES OR ANY OTHER SECURITY OF WCL. This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan. These materials are not an offer or solicitation of any offer of securities for purchase or sale in or into the United States, Canada or Japan.

21 21 Thank You For further details, please contact: Akhil Jindal Director Group Strategy and Finance Harish Venkateswaran GM - Group Strategy and Finance harish_venkateswaran@welspun.com Company Website:

Welspun Group. Welspun Corp Ltd (WCL) Investor Presentation World s Leading Pipe Manufacturer August 2014

Welspun Group. Welspun Corp Ltd (WCL) Investor Presentation World s Leading Pipe Manufacturer August 2014 1 Welspun Corp Ltd (WCL) Investor Presentation World s Leading Pipe Manufacturer August 2014 2 On The Path of Global Leadership WELSPUN CITY, ANJAR 3 WCL An Introduction Flagship company of the USD 3 Billion