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HIMACHAL FUTURISTIC
COMMUNICATIONS LTD.
INVESTOR PRESENTATION
MARCH 2019
Company Overview
• Himachal Futuristic Communications
om Ltd. (HFCL) is an
established leader offering
n fully integrated communication
network solutions. State-of-the-art Manufacturing Facilities
• Manufactures optical fiber
b cables (OFC) and high end • OFC manufacturing at Verna, Goa & Chennai, Tamil Nadu
transmission and access equipment
eq . • Telecom Equipment manufacturing at Solan, Himachal Pradesh
• FRP Rod manufacturing at Hosur, Tamil Nadu
• Specialized in providing
din turnkey solution to telecom service
providers,
pro railways,
ys, defence,
d smart city & surveillance projects. Backward Integration / Expansion at Hyderabad, Chennai
• Deployed more than 25,000 cell site and have laid over 1,00,000
0 • A greenfield Optical Fiber manufacturing facility is being set up with a
km of OFC network. capacity of 6.4m Fkm which will strengthen the Supply Chain and enhance
Operating Margins .
• Green field OFC manufacturing facility is also being set up with a capacity
of 10.5m Fkm
• Expansion of OFC manufacturing capacity at subsidiary HTL Ltd. from 7m
fkm to 10.5m fkm
• Post expansion, consolidated OFC capacity shall reach at 29m fkm

Consolidated Financial Highlights

New Initiatives
• Developing new telecom and defence products like HCRR, SDR,
WIFI Net work Products, UBR, Security and surveillance products,
Revenue EBITDA PAT Electronic Fuses, Night vision Devices, Unmanned Ariel Vehicles
INR 32,781 INR 3,076 INR 1,717 • Field trials and RFPs are in progress for defence equipment
Mn Mn Mn
(47.38% YoY) (43.56% YoY) (38.79% YoY)

2
Board Of Directors
Mahendra Pratap Shukla - (Non-Executive Chairman) Ranjeet Anand Kumar Soni (Non-Executive Director -(Nominee
• An Electrical Engineer with vast experience in Telecom Industry – IDBI)
• Ex-Chairman & MD of TCIL & MTNL • Masters In Mathematics & JAIIB Certification From Indian
• Awarded Telecom Man of the Year award in 1992 for his Institute of Banking & Finance
commendable contribution to the Telecom Industry • Over 18 Years of Experience in Corporate & MSME Segments
With Banking Industry

Mahendra Nahata (Promoter & Managing Director)

• The pioneer of new age telecom sector in India Ved Kumar Jain (Independent Director)
• Has been on the Board of Governors of IIT Mumbai and • A Fellow Member of ICAI
Madras and IIIT, Allahabad • Former President of ICAI
• Ex- Member of CSIR, Govt. of India • More than four decades of experience on advising Corporates
• Served as President of TEMA on finance and taxation matters
• Serced as Co-chairman of Telecom Committee of FICCI • Founder Board Member of Indian Institute of Corporate
• Awarded with Telecom Man of the Millennium award by Voice Affairs, Government of India
& Data
Surendra Singh Sirohi (Independent Director)
• Alumnus – IIT Kanpur and Ex-Officio Secretary to GOI in
Arvind Kharabanda (Non-Executive Director) Ministry of Communication & IT
• A member of ICAI with vast experience across industries like • Has been Member - Technology in Telecom Commission
Telecom, Broadcasting, IT, Electronics, Consumer Durable and • Vast experience in telecom industry particularly in the areas
White Goods of National Policy, sectorial regulations, planning &
• Expert in Marketing, Manufacturing, Project Appraisal, development, R&D, telecom service operations etc.
• Instrumental in formulating several regulatory and strategic
Finance, Planning and Corporate Strategy initiatives for inclusive growth in the telecom sector

Dr. Tamali Sen Gupta (Independent Woman Director)

Dr. R. M. Kastia (Non-Executive Director) • Doctorate in Legal
• Holds Doctorate degree in Chemistry. Fellow of British • Masters in Law from Stanford Law School
Institute of Management (London) • Legal professional with vast experience in international JVs,
• Held Senior Executive positions with various national and collaboration and licensing agreements, M&As
multi-national companies across Industries • Advised Ministry of Railways on installing Fiber optic link
3
Leadership Team

Board of Directors

Managing Director
Mahendra Nahata

SBU Heads Business & Technology Heads Functional Heads

Jitendra Chaudhary Ashwani Gupta V. R. Jain
Telecom Executive Director Finance
Col. B. B. Singh S. K. Garg Vibhas Joshi
Defence Comm. Services Shiv Kumar Singh Supply Chain Management
Sunil Kulshrestha Technology Gaurav Sharma
OFC Turnkey Vibhor Dewan PMO
Sunand Sharma Sales Manoj Baid
Railways Tejveer Verma Company Secretary
Harshvardhan Pagay CRM Anurag Mehrotra
OFC Manufacturing Lt. Gen. (Retd) A. K. Choudhary HR
S. K. Wadhwa Maj. Gen. (Retd) S. K. Dhawan Ajay Srivastava
4G Defence- Manufacturing IT
G. D. Singh
Safe & Smart Cities
4
Key Milestones
Set up :
-Railways Communication,
Smart City, Defence
communication as new
Setup Turnkey
business verticals.
Wireline Division
Manufacturing Forayed into
-Defence equipment
Facility providing fully
business vertical with
Set up at Solan, integrated Capacity of Goa Capacity of Goa
1987

2001

2014
1996

2011

2016

2018
award of seven
Himachal Pradesh network solutions manufacturing manufacturing
manufacturing licenses
for Telecom facility expanded facility expanded
from GoI
Initial Listing Operators to 1.5m fkm to 2.6m fkm Exit from CDR
1989

1997

2008

2012

2015

2017
Company OFC Manufacturing Acquired 74 % New Strategic Capacity of Goa Capacity of Goa Capacity of Goa
Incorporated Facility stake in HTL Ltd. Partnership manufacturing manufacturing manufacturing
Set up under divestment With Reliance Jio for facility expanded facility expanded facility expanded
at Goa with program of Govt of creation of 4G to 4.9m fkm to 7m fkm to 8m fkm
capacity of India Network Infrastructure
0.45m fkm Commencement
Restructured Debt of OFC
Also, set up & Equity manufacturing
Wireless plant at Chennai,
Manufacturing Merger of high Tamil Nadu with
Facility at Solan, net-worth company, capacity of 4m
Himachal Pradesh Sunvision fkm
Engineering
Company Pvt. Ltd.
5
Manufacturing Facilities
OFC Manufacturing
Verna, Goa

Capacity: 8m fkm

Telecom Equipment Manufacturing

Solan, Himachal Pradesh

OFC Manufacturing
Chennai, Tamil Nadu

Capacity: 7m fkm
Planned expansion : 3.5m fkm

FRP Rods, IFGR, ARP Manufacturing

Hosur, Tamil Nadu

Capacity: FRP Thermal - UV 7,66,800 kms /IGFR - 22.50 MT/ARP 1,80,000 kms

OFC & Optical Fiber Manufacturing*

Hyderabad, Telangana

Planned Capacity: OFC - 10.5m fkm / Optical fiber - 6.4m fkm

* Greenfield facilityy - work in progress 6
Key Customers Globally

7
Customer Presence

EUROPE • Germany AMERICAS ASIA • Singapore • UAE • Uganda

• Ireland • Hungary • Brazil • Bangladesh • Sri Lanka • Saudi Arabia • Zimbabwe
• Bosnia and • Poland • Canada • Bhutan • Iran • Somalia
Herzegovina • UK • Mexico • Burma • Kuwait
• Latvia • Italy • Peru (Myanmar) • Cyprus AFRICA
• Lithuania • Slovenia • Georgia Malaysia • Mauritania • Kenya
• Croatia • Spain • Costa Rica • Nepal • Morocco • Nigeria
• Czech Republic • Switzerland • United States • Thailand • Egypt • South Africa
• Macedonia • Albania • Philippines • Oman • Rwanda
• France • Greece AUSTRALIA • Ukraine • Qatar • Tanzania
8
Certifications

Quality Management System Environmental Management

ͻ TL9000 R6.1 / ISO System
Technical 9001:2015 ͻ ISO 14001:2015
Specification RDSO - Type Product
Evaluation Approval Certificate
Certificate Certificate

CPR (EU regulation) CE Certification in HFCL is the first OFC

Certificate - Consistency Compliance with manufacturer in India
of Performance of ROHS regulation to get Optical fiber
Construction Product by TUV Nord Cable listed with UL for
OFCG rating Health Safety Customer Services
Cu
Management System
stem ͻ ISO 10002:2014
ͻ ISO 45001:2018
Information Security
Management System
ͻ ISO 27001
Surveillance Wi-Fi Products
Products

9
PRODUCTS AND SOLUTIONS PORTFOLIO

10
An Agile Portfolio of Products & Solutions

OPTICAL FIBER CABLE, TELECOM PRODUCTS SURVEILLANCE DEFENCE COMMUNICATION

OPTIC- FIBER & OFC PRODUCTS PRODUCTS NETWORK SOLUTIONS
ACCESSORIES • GSM BSS Equipment • Video Management • Unmanned Aerial • Telecom Network Solutions
• Aerial Cables • Microwave Radios System Vehicles(UAV)* • OFC Network
• Armoured / Unarmoured • Telecom Power Systems • Video Analytics • Electronic Artillery Fuses • FTTx Network
Cables • Automatic Number Plate for ammunition* • Rural Mobile Network
• FTTx Cables • High Capacity Radio Recognition • Night Vision devices* • Broadband Access &
• Duct / Micro Ducts Relay * • Red Light Violation • IR PTZ Cameras* Wi-Fi Network
• ADSS Cables • E Band & V Band Radio* Detection System • Radio backhaul
• Ribbon Cables • Wi-Fi Network Products* • Challan Management Network
• Premises Distribution • Cloud-based System
• Defence Network Solutions
Cables Management Platform* • Highway Traffic
• Optical Transport
• CPRI Cables Management System*
Network (DWDM)
• Patch Cords, Pigtails, • Parking Management
• Fiber Monitoring &
Patch Panels, Splitter System
Management
Modules, FDMS, HFTB
• Microwave Network
• IPMPLS Network
• Optical fiber*
(Routing & Switching)
• Border Management
• Perimeter Security
• Railway Communication
Network
• Metro Rail & Main Line
• Smart City & Surveillance
Network
PRODUCTS SOLUTIONS 11
* Products under development
PRODUCTS

12
Optical Fiber Cables

Conventional cables
ͻ Armoured Cable
ͻ Aerial Cables- ADSS and Figure-8
ͻ Duct Cables
ͻ Ribbon Cables
Applications
FTTH Cable
ͻ Indoor/Outdoor cables. Long Distance Network
ͻ Micro-duct / Mini-cables / Air Blown
Cables.
Intra-city Network
ͻ FTTH Cables FTTH Network
ͻ In-Premises Cables In-house Distribution
Specialty Cables
ͻ Tactical Cables
ͻ Intrusion-Free Cables
ͻ Wire Armoured Cables
ͻ Fire Survival Cables
ͻ Easy peel cables

13
Manufacturing Process
Backward Integration
n – Fiber Manufacturing Optical Fiber Cable Manufacturing

Preform Feeding

Sheathing
Induction Furnace Secondary
Coating HDPE or
A loose tube Nylon casing
is shaped on is shaped over
Cooling Tube the stranded
one or more
Ribbon primary unit / loose
individual coated tube
Control and Measure Colouring of fibers optical /
Optical fibers aligned in a ribbon fiber Stranding
for ease of single row and gap in Loose tube
WOW Coating Unit identification in the most the tube is are stuck
during compact filled with around the
installation and cable suitable central
operation package filling gel strength
UV-lamps fiber S U

fiber Capstan Take-up

14
Telecom Products
Unlic
Unlicensed Band Radio
Provide
Prov high speed point-to-point
and point-to multi-point
conn
connectivity solution in unlicensed
Microwave Radio Equipment ISM bands.
Integrated high bandwidth radio unit
with centralized network
management

Power Solution Equipment

Bridgeless, dynamic and digitally
controlled ultra-high efficiency
rectifier power equipment

GSM BSS Equipment

Small Size GSM Radio
Sub System for GSM
Coverage in rural area.
Cost effective solution Wi-Fi
Wi Access Point
for villages still The products are IEEE standard
uncovered. 80
802.11ac Wave 2 certified access
po
points (APs) for indoor / outdoor
Wi deployments.
Wi-Fi

15
Surveillance Products

VMS
Video Management System • Focused on Smart City Solutions,
City Surveillance, Traffic
Enforcement, Critical
PMS Infrastructure Protection,
Parking Management VA
System Video Analytics Industrial & Government Projects

• Company believes in developing

HTMS ANPR Innovative Solution which are
Highway Traffic Automatic Number best in class yet customized and
Management System Plate Recognition
modified to suit geographical
needs/demands

• In-house Software Development

& R&D
CMS RLVD
Challan Management System Red Light Violation Detection
System

16
Defence Products

The nascent steps that

HFCL started taking in
Defence manufacturing
a couple of years ago,
under the ‘Make in
Unmanned Aerial Vehicles Electronic Fuses for all types India’ initiative, have
Electro Optical Devices (Night (UAVs) of ammunition
Vision Devices) been growing steadily
in stature.
Successful in Technical HFCL has participated in a bid
HFCL has participated in a few evaluation and field trials are for supply of 5 Mn fuses over
tenders for these devices in process 10 years which is under
Technical evaluation.

17
SOLUTIONS

18
Telecom Network Solutions
OFC Network
• OFC Survey & Network Design
• fiber Deployment
• Site and Infrastructure Built-up WIFI : Providing complete eco system for WIFI
• Installation & commissioning services
• Operations & Maintenance • Design and Implementation of WIFI solutions
• Offering entire range of WIFI AP’s, WLC’s,
Portal (Cloud/Appliance) and Management SW
• Front haul and Backhaul integration and
FTTx Network services roll out
• Planning & Design
• Equipment Supply
• Installation & Commissioning
• Operations & Maintenance
Specialized Services
• Network optimization
• Managed Services
Mobile Network • RF network Optimization
• Cell Site Infrastructure
• Supply , Installation & Commissioning
• BSS Equipment manufacturing & Supply
• Centralised NMS
• Operations & Management

19
 Defence Network Solutions
Fiber Network
Rollout of dedicated optical fiber network for armed IPMPLS Network (Routing & Switching)
forces Converged Nationwide IP/MPLS Backbone Network with 219
Access Network Locations and Integrated IMS based
Optical Transport Network Communication Solution on Turnkey Basis for Defence
Rollout of exclusive and dedicated Nationwide Network
DWDM based Optical Transmission backbone
network for Armed Forces

Border Management Solutions

An integration of a number of new
Fiber Monitoring & Management gadgets and technologies to ensure
electronic surveillance of India’s
(GOFNMS) international borders
Implementing a Pan India Optical Fiber Network for
providing optical gigabit access network connectivity
to defence forces

Perimeter Security of Strategic

installations
Ensure reliable, long-term solutions for the
Microwave Network perimeter protection challenges of security
Rollout of Hybrid Microwave Broadband Radio sensitive infrastructure and locations.
Links for pan India defence network

20
Railway Communication Network Solutions
• In order to leverage its telecom product and EPC capabilities in adjacent space,
Company has ventured into railways business
• HFCL offers integrated solutions crafting a combination of its own products and those
others from leading manufacturing OEM partners from India and abroad.
• The Company is currently implementing telecom networks for three greenfield domestic
railway freight corridor projects received from marquee customers like L&T, Alstom &
China Rail
Network Design Equipment Design
• HFCL has also been awarded two overseas contracts to execute the Telecommunication
Systems projects for Mauritius Metro Express Project and Dhaka Metro Mass Rapid
Transit System

Installation & Network

Commissioning Integration

Post Deployment
Services
21
 Smart City & Surveillance Solutions
Smart City Projects executed by HFCL
HFCL’s offerings in the Safe & Smart city domain include key core solutions like
Communication / IT / Telecom infrastructure, data centre, disaster recovery and Ludhiana Safe City
management, security, surveillance, traffic management and citizen / mobile • 1,450 cameras at 159
Locations with 30 days
applications. * storage at Police lines
Data Centre.
• Applications Portfolio:
VMS, VA, ANPR, RLVD,
Intelligent Traffic NMS, Antivirus and
Safe City Solutions Video Surveillance
Management Solutions Backup Software.

JDA Smart City

• 100 Wi-Fi Access Points and
170 Surveillance Cameras in
the City Area.
• Video Management • Highway Traffic • Administrative Work- • 2,000 Smart Street Lights
System Management System station with 1600 Smart Poles.
• Red Light Violation • Vehicle Category Detection • Detection & Tracking
Detection • Motion/Intrusion/wrong services
• Number Plate Recognition direction detection • IP Video wall Other Projects
• Parking Management • Variable Message Sign • Video Management
• Vehicle movement • Tress-passing detection • Noida Expressway Surveillance & Traffic
System
detection • Over-crowding detection • Video Analytics System • Gurgaon Safe City & Traffic Management
• Incident Management • Vandalism & tamper • Live Image Analytics • UIDAI - Aadhar (Data Centers)
• Unidentified Object detection • Fire Detection • Tihar Jail, New Delhi through partner
detection • Challan Management • Person/Animal detection
• Vehicle Color detection System • Loitering, Left baggage • IOCL: Panipat & Barauni
detection • NTPC: Mauda, Rihand, Vindhyachal
22
* Includes offering by its wholly owned subsidiary Polixel Security Systems Pvt. Limited
FINANCIAL OVERVIEW

23
Key Highlights – Consolidated Financials
Debt /Equity is
PAT up now comfortable
Completely from a loss of at 0.34x
Transformed INR 67 Cr in
on Growth FY12 to INR Debt is largely
Trajectory 172 Cr in FY18 Working
Debt down 87% Capital
Revenue up from INR 2,211
from INR 305 Cr in Cr in FY09 to
FY12 to INR 3,278 INR 408 Cr by
Cr in FY18 FY18

49% CAGR

EBITDA CAGR of Credit rating has

Strong Order
37% from FY12 to significantly
FY18
Book of INR
improved from D
~11,000 Cr in FY12 to A- with
EBITDA at provides visibility stable outlook in
INR 279 Cr FY18

24
Performance Metrics
Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn)
32,781 32,858
27,709 29,072 3,902 4,750
3,508
21,717 22,243 3,076 2,787 3,239
2,683
2,143
1,678 1,563 1,237 1,717 1,326
7,261 564
3,045 462

-668
FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M
FY19* FY19* FY19*

PBT (INR Mn) PAT Margin

EBIDTA Margin
4,782 23.1%
3,239 15.2% 21.9%
2,204 2,066 12.4% 14.1% 12.1% 11.7%
1,564 1,242 9.6% 9.4% 8.5% 7.8% 5.4% 5.6% 5.2% 4.0%
566

-21.9%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M
-667
FY19*

25
* Standalone
Debt Equity & Shareholders Return
Debt (INR Mn) Debt / Equity (INR Mn)
22,112
15,000 0.60
0.50 12,116
0.42 0.44 0.50
13,051 10,000 0.40
9,206 10,446
7,584 0.34
0.30
4,530 4,116 3,795 4,637 4,582 4,077 4,637 4,582
3,206 3,174 5,000 4,077 0.20
3,174
0.10
- 0.00
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18

Debt Equity D/E Ratio

Credit rating has significantly improved from D in

FY12 to A- with stable outlook in FY18

Networth (INR Mn) EPS Rs.

RoE (%)
12,116
10,446 139.5%
9,206 3.79
7,584 79.9%
6,344 51.6% 2.57
20.6% 13.7% 16.2%
1.26 1.38
1.00 1.05
1,229 1,793 0.41
-88.2%
-0.66
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY12 FY13 FY14 FY15 FY16 FY17 FY18

26
* Standalone
Consolidated Income Statement
PARTICULARS (INR Mn) FY17 FY18
Revenue from Operations 22,029 32,517
Other Income 214 264
Total Income 22,243 32,781
Total Expenses 20,100 29,705
EBITDA 2,143 3,076
EBITDA Margin 9.63% 9.38%
Depreciation 218 232
Finance Cost 624 636
Share of net profits of JV's accounted using equity method (59) 14
Exceptional Items 0 (18)
PBT 1,242 2,204
Tax 5 487
Profit after Tax 1,237 1,717
PAT Margin 5.56% 5.24%
Other Comprehensive Income 18 12
Total Comprehensive Income 1,255 1,729
EPS (Diluted) 1.00 1.38
27
Consolidated Balance Sheet
EQUITIES & LIABILITIES (INR Mn) FY17 FY18 ASSETS (INR Mn) FY17 FY18
(A) Share Capital 1,239 1,239 (A) Property plant & Equipment 1,582 1,657
(B) Other Equity 8,402 10,273 (B) Capital Work in Progress 17 17
(C) Goodwill 258 258
Non Controlling Interest 15 54
(D) Other Intangible Assets 43 43
Total -Shareholder Funds 9,656 11,566 (E) Intangible Assets under development - 82
(F) Investment in Associates/ JV 42 56
Non Current Liabilities (G) Financial Assets
(A) Financial Liabilities (i) Investment 445 461
(ii) Trade receivables - 7
(i) Borrowings 2,676 1,413
(iii) Others 74 133
(ii) Financial guarantee Obligations 2 3
(H) Deferred Tax (Net) 1,226 1,187
(B) Provisions 186 231 (I) Other Non Current Assets 9 22
Total - Non – Current Liabilities 2,864 1,647 Total - Non – Current Assets 3,696 3,923
Current Assets
Current Liabilities (A) Inventories 2,454 2,136
(B) Financial Assets
Financial Liabilities
(i) Investment 17 36
(i) Borrowings 1,801 2,004 (ii) Trade Receivables 11,794 12,334
(ii) Trade Payables 4,572 5,626 (iii) Cash & Cash Equivalents 59 666
(iii)Other Financial Liabilities 3,505 4,378 (iv) Bank balances other than above 916 655
(B)Other Current Liabilities 331 636 (v)Loans 67 67
(vi)Others-Advances 2,634 4,411
(C)Provisions 25 27
(C) Current Tax Assets (Net) 592 964
Total – Current Liabilities 10,234 12,671
(D) Other Current Assets 525 692
Total – Current Assets 19,058 21,961
GRAND TOTAL - EQUITIES & LIABILITES 22,754 25,884 GRAND TOTAL – ASSETS 22,754 25,884
28
Standalone Income Statement
PARTICULARS (INR Mn) FY17 FY18 9M-FY18 9M-FY19
Revenue from Operations 20,668 30,842 21,400 32,754
Other Income 186 195 76 104
Total Income 20,854 31,036 21,476 32,858
Total Expenses 18,860 28,210 19,521 30,071
EBITDA 1,994 2,826 1,955 2,787
EBITDA Margin 9.56% 9.11% 9.10% 8.48%
Depreciation 157 163 121 127
Finance Cost 599 609 487 594
Share of net profits of JV's accounted using equity method 0 0 0 0
Exceptional Items 0 (18) 0 0
PBT 1,237 2,036 1,347 2,066
Tax 0 486 385 739
Profit after Tax 1,237 1,550 962 1,326
PAT Margin 5.93% 5.00% 4.48% 4.04%
Other Comprehensive Income 19 (5) (1) -8
Total Comprehensive Income 1,256 1,545 961 1,318
EPS (Diluted) 1.01 1.24 0.78 1.05
29
Standalone Balance Sheet
EQUITIES & LIABILITIES (INR Mn) FY17 FY18 ASSETS (INR Mn) FY17 FY18
(A) Share Capital 1,239 1,239 (A) Property plant & Equipment 1,068 1,074
(B) Other Equity 9,196 10,921 (B) Capital Work in Progress 14 14
(C) Other Intangible Assets 41 30
Total -Shareholder Funds 10,435 12,160
(D) Intangible Assets under development 82
(E) Investment in Associates/ JV 186 186
Non Current Liabilities (F) Financial Assets
(A) Financial Liabilities (i) Investment 444 440
(i) Borrowings 2,376 1,113 (ii) Trade receivables
(iii) Others 915 1,041
(ii) Financial guarantee Obligations 6 4
(G) Deferred Tax (Net) 1,224 1,187
(B) Provisions 164 205 (H) Other Non Current Assets 1 19
Total - Non – Current Liabilities 2,546 1,322 Total - Non – Current Assets 3,893 4,073
Current Assets
Current Liabilities (A) Inventories 2,176 1,787
Financial Liabilities (B) Financial Assets
(i) Investment 17 36
(i) Borrowings 1,653 1,862 (ii) Trade Receivables 11,472 12,341
(ii) Trade Payables 3,924 5,158 (iii) Cash & Cash Equivalents 24 492
(iii)Other Financial Liabilities 3,474 4,320 (iv) Bank balances other than above 775 592
(B) Other Current Liabilities 215 611 (v) Loans 144 68
(C) Provisions 22 25 (vi) Others-Advances 2,668 4,484
(C) Current Tax Assets (Net) 574 951
Total – Current Liabilities 9,288 11,976
(D )Other Current Assets 526 634
Total – Current Assets 18,376 21,385
GRAND TOTAL - EQUITIES & LIABILITES 22,269 25,458 GRAND TOTAL – ASSETS 22,269 25,458
30
Strong Order Book of ~INR 11,000 Cr provides visibility

Total Orde
Order
er book
ookk
of ~INR
R 11,000
0 Cr Order Book To Revenue (INR Cr.)*
11,000

• Prestigious orders 8,700

spread across all
business verticals-
telecom, defence,
railways, OFC Turnkey & 3,300 3,000 3,070 3,275
2,570
manufacturing, Smart 2,015
Cities and private
operators
FY16 FY17 FY18 9M-FY19

Revenue Order Book

• Break through in
overseas orders for
Railway Systems

* Standalone 31
INDUSTRY OVERVIEW

32
Telecom - Mature Eco-system Is Driving Pan India Growth
Government Initiatives 4G, 5G, Fiberisation
Encouraging investment in high-capacity 4G is the key driver behind increasing users’
4G appetite towards data consumption. Aggressive 4G
networks and accelerate public access to
5G expansion capturing 92% share of total data traffic
Internet
Digital India, Bharatnet, defence Communication,
Wi-Fi, Railways, Smart Cities etc. Only 20-25 per cent of sites in India are fiberized, a
number that needs to go up to 80-85 per cent by
National Digital Communication Policy, 2018 sets
2022 to support 5G and its enabling technologies
aggressive targets
IoT, M2M

Growing Internet Community FTTH

Internet Subscribers grew at CAGR of 25% (2013- FTTH Play of FTTH is limited to just 0.5% penetration
18) 560 Mn in Sept 2018 which shall become dominant for broadband
Broadband Internet Subscribers stand at 482 Mn dream. Fixed broadband to rise to 113.5m
in Sept 2018 at CAGR of 94% (2013-18) household connections, at a CAGR of 40.7% during
2017-22

Consumption Pattern
Total Data usage per month grew ~40 times in Device Ecosystem
last three years from 128 PB to 4,867 PB Aggressive evolution of device ecosystem

usage / user pm grew 12 times in three years Sharp decline in handset prices
from 0.8GB to 9.41 GB Substantial additions to LTE device base
Usage grew 109% YoY in 2018 reaching 277m

Video contributed to 70%-80% share of mobile LTE device ecosystem continues to develop
across LTE bands in India

༤
data traffic 2018
Demand has shifted from call and VAS to a
data-linked play Affordable Tariffs
Entry of Jio altered the face completely
Tariff declined to INR 11 / Gb from INR 287 in
Source : TRAI
AII, Nokia
a MBiT
iTT, Cisco
o VNI 33
2014
Industry Growth
Internet Subscribers (Mn) 3G/4G device base (Mn)

900 530
432
379
494 560 310 335
422
343 218
128
47

Mar-16 Mar-17 Mar-18 Sep-18 Dec -22

2015 2016 2017 2018
3G 4G

Internet Traffic Per month (Exabyte) Internet Speed (Mbps)

31.2
15.5

9.5
2.1 5.1 6.6
0.9 1.2

2015 2016 2017 2022P 2015 2016 2017 2022P

Source : TRAI
AII, Nokia
a MBiT
iTT, Cisco
o VNI,Co
o Estimate 34
Data Consumption To Leap Frog – Doubling YoY
DATA USAGE PER MONTH, PENTABYTE Per Subs Data Usage / Price per GB (INR)
(PB)
226.0
9.43
Total, 4867
4G, 4472
5.59
2360 76.0

1930 0.79 19.0 11.0

966 2.69
128
3G, 395
0 0 2015 2016 2017 2018
2015 2016 2017 2018
Data Usage per Month (Mb) Price per
er GB

Increased devices and Video Traffic

Internet Video Traffic pm

(Exabyte) Network device per capita
77%
12.0 1.5
52% 53% 57% 1.2
1.1
1.0

0.5 0.6 1.2

2015 2016 2017 2022P

Internet Video Traffic pm 2015 2016 2017 2022P
Percentage to total traffic
Source : TRAI
AII, Nokia
a MBiT
iTT, Cisco
o VNI 35
National Digital Communications Policy, 2018
Target 2022
Connect India:
Fixed By Creating a Robust Digital Communication Infrastructure
25 Mbps Broadband 50 Mbps ͻ Provide Universal broadband connectivity at 50 Mbps to every citizen
ͻ Provide 1 Gbps connectivity to all Gram Panchayats of India by 2020 and 10 Gbps by 2022
speed
ͻ Enable 100 Mbps broadband on demand to all key development institutions including all
educational
Households with ͻ Enable fixed line broadband access to 50% of households
8.1% fixed broadband 50% ͻ Achieve ‘unique mobile subscriber density’ of 55 by 2020 and 65 by 2022
access ͻ Deployment of public Wi-Fi Hotspots -5 Mn by 2020 and 10 Mn by 2022
ͻ Ensure connectivity to all uncovered areas
Unique mobile
53% subscriber
density
65% Propel India:
By enabling next-gen technologies & services through investments, innovation, local
manufacturing & IPR generation
ͻ Attract investments of USD 100 Bn in the digital communications sector
Public Wi-Fi
0.04 Mn spots 10 Mn ͻ Expand IoT ecosystem to 5 Bn connected devices
ͻ Accelerate transition to Industry 4.0
ͻ Increase India’s contribution to global value chains
ͻ Creation of globally recognized IPRs and innovation led Start-ups in Digital Communications
ͻ Train / re-skill 1 Mn manpower for building new age skills
25% Telecom tower
fiberization 60%
Secure India:
By ensure digital sovereignty, safety and security of digital ecosystem
0.87 Bn Connected
devices 5 Bn
ͻ Establish a comprehensive data protection regime for digital communications
ͻ Develop and deploy robust digital communication network security frameworks
ͻ Address security issues relating to encryption and security clearances

36
Source : NDCP, 2018, EY Broadband 2022
 Smart Cities & Surveillance
Role of ICT in Smart City

• Ninety-nine cities have been

selected under Smart Cities Intel
Intelligent and
Project at an outlay of Rs 2.04 lakh Cr e
efficient Cost and energy
nergy
u
use of savingss
Planning re
resources
• High speed Communication technology of ICT
shall play a key role to build better Infrastructure be Reduced
communities and digitally empower prime focus are in Environmental
Green field & footprint
citizens where Citizen centric services Brownfield
shall be optimized like smart roads, solar smart cities
roof, intelligent transport system, etc.
• Cities will leverage on connectivity, Different
Acts as an enabler systems and nodes
open data and end-to-end security are interconnected
to make a
where Telecom backbone forms an city smart on common ICT
essential part of Smart Cities for Infrastructure
communication and automatic response
among citizens Telecom Enablers of Smart Cities
• OFC Connectivity being the most
efficient way of networking provides Build modules
Immense potential for telecom infra Utilises wire Interconnected in Smart city
developers to develop and/or and / or autonomous Smart meters arena, such as
redevelop communication infra wireless devices, distributed and censors Power, Water
censor across the etc. and Waste
networks locations Management

37
Source : EY Broadband 2022, smartcities.gov, PwC
Defence

• India is the largest importer of defense equipment in the world

where the imports account for nearly 65% of the country’s
military requirement.
• India has spent USD 100 Bn in last one decade to buy 65 per cent
of its defense equipment therefore, the government has set a
goal to reverse this trend and reduce the import percentage to
under 30% in next couple of years through Make in India
initiative.
• The Defense Procurement Procedure has been amended to
encourage participation by domestic players which will reduce
the procurement cycle of critical equipment and achieve cost
reduction
• Policy measures will lead indigenous manufacturing of Electronic
Fuses, Electro Optical Devices, UAVs, Radars, Electronic Warfare
and Communication equipment etc.
• The draft policy on Defense projects the export of INR 35,000
crores in military equipment and services by 2025
• India has inked defense pact worth INR 2.40 lakh Cr with foreign
and domestic firms for military equipment in last four years.

38
Railways

• India is one of the largest rail networks in the

world and is expanding like never before with
FY18 revenues at USD 27.71 Bn (CAGR of ~10%
during FY07-FY18)
• Legacy Signaling and Telecom Systems are
integral parts of Railways and need an
overhaul and upgradation to strengthen speed
and safety
• Government has recognized the need to renew
legacy infrastructure as well as construction of
new rail lines that will deploy next generation
telecom and signaling systems
• Indian Railways would spend about 850 Bn • Growing Demand : Increasing urbanisation in both rural
over the next six years to overhaul the and urban segment are driving the growth for the sector
signaling system on its entire rail network and
promote make in India • Railway Infrastructure : Expected to Increase from USD
58.96 Bn in 2017 to 124.13 Bn by 2022
• The Government of India has focused on FDI in
railways to improve infrastructure for freight • Policy Support : Government has increased scope of PPP
and high-speed trains. At present, several in providing maintenance
domestic and foreign companies are also
looking to invest in Indian rail projects

39
9
Massive US$ 100 Bn+ Industry Opportunities
Fiberizing
70% of the towers FTTH shall play a Government
Huge will require an estimated significant role in and Private Operators
Infrastructure 600,000 fkm, at an broadband vision. Shall continue
expenditure investment of INR 560 Bn Fixed broadband to rise investing
is underway in India to 113.5m household
5G deployments are likely to connections, at a CAGR
substantial capital
Strengthening backhaul entail massive investments of 40.7% during 2017-22 in upgrading telecom
om
and FTTx for a fiber of around INR 4,200 bn infrastructure GoI’s push in
rich diet In next 5-6 years fast-tracking its Smart City
mission is yielding results
Need for High Speed with SPVs getting formed
Broadband
R&D efforts in most cities
towards
innovative, indigenous Outlay of INR 2,040 Bn
Nearly 70% of India’s WiFi network solutions has been approved
towers need to be shall be ready for 99 cities
fiberized by 2020 for deployment
in 2019
OFC installations to
become critical for network Railways
Make In India push for
expansions would overhaul
Defence Products provide
the signaling system
Networks to become denser an opportunity of
by spending about
and deeper – making INR 500 Bn in HFCL’s
INR 850 bn over
fiberization an addressable market
next 5-6 years
imperative
40
Value Proposition

Agile Portfolio of Products and Leadership

Solutions Established leader in providing fully integrated solutions in building
Agile portfolio of products and solutions backed by excellent Communication Networks for Telecom, Defence, Railways and other sectors
manufacturing facilities

Strong Order Pipeline IPR Ownership

Strong earning visibility with ~INR 11,000 Cr Order Book. Owns IPRs & Copyrights for various products
Significant Orders spread across verticals. Comprises of INR 2,300
Cr high margin O&M Contracts

Comfortable Debt Equity Diverse Customer Base

Free Cash Positive with comfortable D/E of 0.35x Diverse Customer Base across all verticals of operations
Credit rating has significantly improved from D in FY12 to A-
with stable outlook in FY18

Backward Integration & Expansion

Backward Integration into Optical fiber Manufacturing shall Capitalising on Infra Wave
strengthen supply chain and enhance operating margins. Proven expertise in optical fiber network roll out helps in
Expansion of OFC Capacity shall lead to enhanced revenue and capitalizing on Telecom Infrastructure wave. Government and
profits. Private players shall continue to make significant investment

New Business Initiatives Strategic Partnerships

Developing new products for Telecom and Defence. Promising Long standing association with marquee customers
opportunities in Railways, Smart Cities & Surveillance.

41
Capital Market Information
Share Market Performance
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Himachal Sensex

PRICE DATA (AS ON 31st December, 2018) Shareholding - 31 Dec, 2018

Face value (INR) 1.00

Market Price (INR) 21.2
52 Week H/L (INR) 36.65/17.20 Promoters,
39%
Market Cap (INR Mn) 2,6433.8 Public, 56%

Equity Shares Outstanding (Mn) 1,246.88

1 Year Avg. trading volume (‘000) 7840.00 FIIs, 4%
DIs, 1%
42
Glossary
// : All-Dielectric Self-Supporting
ANPR : Automatic Number Plate Recognition
ARP : Aramid Reinforcement Plastic
CCTV : Closed Circuit Television
CMS : Challan management System
CPRI : Common Public radio Interface
DWDM : Dense Wave Digital Multiplexing
EBIDTA : Earing before Depreciation, Tax, Amortisation
FDMS : Fiber Distribution management System
FRP : Fiberglass Reinforced Plastic
FTTx : Signifies reach of Fiber to the Home, Curb, Office, Desk - FTTH, FTTC, FTTP, FTTD etc
GOFNMS : Optical Fiber Cable Network Management System
HCRR : High Capacity Relay Radio
HFTB : Fiber Termination box
HTMS : Highway Traffic Management System
IGFR : Impregnated Glass Fiber Reinforcement
IP MPLS : Internet Protocol - Multi-protocol Label Switching
LTE : Longterm Evolution
NMS : Network management System
OFC : Optical Fiber Cable
PABX : Private Automatic Branch Exchange
PAT : Profit after Tax
PMS : Parking Management System
RFP : Request for Proposal
RLVD : Red Light Violation System
SDR : Software Defined Radio
UBR : Unlicensed Band Radio
VA : Video Analytics
VMS : Vehicle Management System
WAP : Wireless Access Points
WiFI : Wireless Fidelity
WLC : Wireless Lan Controller
43
Disclaimer
Himachal Futuristic Communications Limited

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this
presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and
may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Camlin Fine Science Limited, which are expressed in good faith and in their opinion reasonable,
including those relating to the Company䇻s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory
environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry
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other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to
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For further details, please feel free to contact our Investor Relations Representatives:

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Valorem Advisors HFCL
Tel: +91-22-4903 9500 Tel: +91-11-30886542
Email: [email protected] Email: [email protected]
44