BEST STEEL LOGISTICS LIMITED Investor Presentation – July 2017

Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements“. These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

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Table of Content

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Company Overview 1 Growth Levers 2

Financial Highlights 3 Annexure 4

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Company Overview

Company – Quick Facts

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` Offers comprehensive and tailor-made Warehouse Management, Distribution and inventory management services of steel products

4 owned/leased and strategically located warehouses spread across a total of 373,000 square feet of area across Pan-India Focus on Benchmarked quality standards, standardized processes and delivering operational excellence

Custom-fit and cost-effective warehousing solutions to fulfil the demands of a growing steel industry Long-term relationships with leading steel and steel product manufacturers for providing quality warehousing capabilities and services

Versatile & Capable management having hands-on experience of two decades in the steel industry

Comprehensive warehousing solutions provider • Best Steel - an amalgamation of decades of experience, market intelligence and flexible processes • Focus on offering Integrated end-to-end warehousing solution for handling and distribution of steel and steel products • Warehouses are equipped with overhead cranes up to 30 ton capacity • Facilities fully equipped to accommodate a wide variety of heavy equipment machinery • Manned by experienced staff • 24-hour security and video surveillance

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Our Journey Has Just Begun

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In 2016, Best Steel Logistics (erstwhile Potential Investments & Finance) began the business of warehouse management and logistics solutions • Acquired warehouses across India through part-funding by sanctioned term loan • Established network of 4 warehouse facilities in Dadri, Hyderabad, Faridabad and Bangalore in FY2016 • Warehouses along with network partners/agents serve leading steel manufacturers in India • Operates integrated facilities covering over 373,000 sq. ft. of warehousing area • Well-entrenched delivery reliability through strong dealer distribution network • Deep domain expertise in the Steel sector

Warehouses June 2016 October 2016 Nov 2016 January 2017 March 2017 Dujana, Dadri 19,081 18,035 8,883 14,465 17,093 Hyderabad - - - 1,931 3,671 Faridabad - - - 1,350 1,944 Bangalore - - - 1,442 2,594 Total 19,081 18,035 8,883 19,188 25,302

Rapid Growth in Capacity Expansion In Just 15 Months Since Inception Volume in MT

Integrated Warehousing & Distribution Capabilities

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Fleet of heavy machineries such as cranes, loader, hydra, forklifts, etc. Efficient Stock level Management Project Management Agile Operational Abilities Value Added Services Efficient Stock level Management Experienced human resources Tailor-made services Reduces costs and improves efficiencies in the supply chain Delivering low-cost and on-time services

Facilitates Heavy Equipment Storage

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TMT Bars CR Sheets

Wire Road HR Coils

Angles Billets CR Coils

Aspiring to be a leading Pan-India Player

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Accelerated expansion plan to

augment presence across key

states

• Aiming to add 3-4 warehouses every year across India • 3 new warehouses identified and to be established by FY18 • Extending presence in newer markets of Rajasthan, Gujarat and Madhya Pradesh

Dujana, Dadri Faridabad

Hyderabad Bangalore Future expansion Areas Present Warehouses

Strong Leadership Industry veteran - long-term relationships with leading steel companies Under his leadership, the Company has grown rapidly (2x capacity expansion) since business inception in 2016

Opened 4 strategically-located warehouses across India 20+ years of experience in operations across Industry Strong sense of dedication and direction for ensuring continued success

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Extensive expertise and deep understanding of the marketplace with 20+ years of industry experience

Operations led by Mr. Saket Agarwal

Business Vectors

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Customer-centric organization with long-term relationships with companies Solid ties with leading domestic steel and steel products manufacturers – aim to boost brand value and credibility of ‘Best Steel’ among key plays in the steel industry Enhancing levels of engagement with newer and existing customers to fuel growth in business model

Customer Base

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Growth Levers

External Growth Levers Best Steel enjoys solid domain expertise in the Steel Sector - capacity of steel sector projected to increase to about 300 MT by 2025 • India is one of the top 10 steel manufacturers in the world • Demand for steel rapidly increasing from key sectors such as Urban Infrastructure, Automobile industries, Solar industries and white goods • Expanding capacities will entail movement of heavy amount of raw material • Incremental value additions at all levels of supply chain process, positively affecting warehousing and distribution providers, thus boding well for the Company

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Myriad untapped growth opportunities across the Domestic Steel sector, further fueled by Government Initiatives Indian warehousing industry growth is pegged to grow at over 10% Y-o-Y • Gradual uptick in manufacturing and mining activities to aid growth • GST expected to improve operational efficiency of the sector • High demand for warehousing facilities in India • Increased government projects, infrastructure activities, and development of organized retail sectors providing a thrust to growth

Multitude of macro-opportunities for Best Steel Logistics to grow and expand its operations in the domestic markets

External Growth Levers GST – Vast market opportunity to be unlocked • Logistics industry, currently, marked by higher logistic costs and complex tax structures • GST to help ease tax bottlenecks on warehousing and distribution companies • GST trims logistic costs up to 20% from the current levels • GST expected to boost construction and development of various logistics hubs • Improved dynamism and operating efficiency of the sector • Sector will see radical consolidation, immensely benefiting organized players • Strong business prospects for Best Steel Logistics

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Myriad untapped growth opportunities across the Domestic Steel sector, further fueled by Government Initiatives Government Initiatives to offer fresh growth avenues for the Warehousing Industry • Make in India • National Integrated Logistics Policy • 100% FDI in warehouses • Digital India

GST, a game changer for the sector and in turn, for Best Steel Logistics

Upscaling Business • Capacity expansion will aid medium term to long term growth • New dedicated facilities to be set-up in Rajasthan, Gujarat and Madhya Pradesh in the coming fiscal • Augmenting pan-India presence through addition of 3-4 warehouses every year Warehouse Capacity Expansion

• The Company engages in Marketing and distribution of steel products like TMT bars, rolled products, billets , ingots and steel pipe and tubes • Approach towards penetrating trading business with large steel manufacturers • Trading business expected to see a healthy growth trend going forward Optimization of Trading Business

• Leveraging existing relationships to support lateral growth of new customer acquisitions • Diversifying and Expanding business to newer regions will improve market penetration • Aggressive focus on improving market share across customer base Strengthening Customer Relationships

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Company designs, implements manages and operates streamlined seamless warehousing solutions for leading steel manufacturers across the Steel sector

Our Target by 2020

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Adding 3-4 warehouses every year across India

Aspiring to be a leading Pan-India Player Upgradation and addition of old and new dedicated facilities; new facilities being targeted in Rajasthan, Gujarat and Madhya Pradesh

To enhance business visibility across newer markets Operate multi-warehouses catering to the Steel sector diversified by market & geography, providing strong earnings

To be among the top Warehousing & logistics companies Improving brand reach laterally through a two-pronged approach of 1) Leveraging existing customer base 2) Targeting newer markets

To strengthen brand ‘Best

Steel’ across the Steel sector Vision

Execution

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Financial Highlights

Abridged P&L

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Particulars (Rs. lakh) Q4 FY17 Q4 FY16 FY17 FY16 Income from Operations Revenue from Operations (net of excise) 2,976.5 22.9 5,699.0 1,669.1 Income from Storage & warehousing 136.6 - 425.5 - Total Income From Operations 3,113.1 22.9 6,124.4 1,699.1 Other Income 62.3 68.0 66.4 83.1 Total Income 3,175.4 90.9 6,190.8 1,752.2 Expenditure Purchase of Stock-in-Trade 2,936.6 20.0 5,569.7 1,602.5 Employee benefits expense 23.6 2.7 63.2 10.9 Other expenses 77.5 1.8 154.8 36.2 Total Expenses 3,037.7 24.5 5,787.7 1,649.6 EBITDA 137.7 66.4 403.1 102.6 EBITDA margin (%) 4% 73% 7% 6% Finance Costs 61.4 70.0 172.4 99.0 Depreciation and Amortization 6.6 - 8.2 0.4 PBT 69.7 (3.5) 222.6 3.3 Tax expense 30.9 0.9 81.5 4.1 PAT 38.8 (4.4) 141.1 (0.9) Diluted EPS 0.21 (0.02) 0.76 0.0

Abridged Balance Sheet

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Particulars (Rs. lakh) As at March 31, 2017 As at March 31, 2016 Equities & Liabilities 1) Shareholder’s Funds 457.2 316.1 2) Non-current Liabilities 3,197.1 1,092.4 - Long-term Borrowings 3,176.3 1,092.5 - Deferred Tax liabilities (net) 14.2 (0.04) - Long-term Provisions 6.7 3) Current Liabilities 289.4 477.0 - Short-term Borrowings - 470.5 - Trade Payables 47.0 - - Short-term Provisions 41.9 - - Other current liabilities 200.5 6.5 TOTAL – EQUITIES & LIABILITIES 3,943.7 1,885.5

Particulars (Rs. lakh) As at March 31, 2017 As at March 31, 2016 Assets 1) Non-current Assets 2,571.0 1,502.2 a) Fixed Assets - Tangible Assets 2,464.7 1,502.2 - Intangible assets 0.02 - - Capital Work-in-progress 16.9 - b) Non-current Investments - - c) Long-term loans and advances - - d) Other non-current assets 89.4 - 2) Current Assets 1,372.7 383.3 a) Inventories - - b) Trade Receivables 246.1 211.5 c) Cash & cash equivalents 81.4 1.4 d) Short term loans and advances 950.6 170.4 e) Other current assets 94.5 - TOTAL – ASSETS 3,943.7 1,885.5

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Thank You