Arvind Ltd. — Investor Presentation 2023

Jul 27, 2023

27th July, 2023

To, BSE Limited Listing Dept. / Dept. of Corporate Services, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai ‐ 400 001.

Security Code: 500101 Security ID: ARVIND

To,

National Stock Exchange of India Limited Listing Dept., Exchange Plaza, 5th Floor, Plot No. C/1, G. Block, Bandra‐Kurla Complex, Bandra (E), Mumbai ‐ 400 051.

Symbol: ARVIND

Dear Sir/Madam,

Sub: Revised Investor Presentation on unaudited financial results for the quarter ended on 30th June, 2023

Ref.: Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Pursuant to Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith revised Investor Presentation issued by the Company in respect of unaudited financial results for the quarter ended on 30th June, 2023.

Kindly ignore the earlier Investor Presentation submitted by the Company today.

You are requested to take the same on records.

Thanking you

Yours faithfully, For Arvind Limited

RAMNIK VASHRAMBHAI BHIMANI Digitally signed by RAMNIK VASHRAMBHAI BHIMANI Date: 2023.07.27 14:44:40 +05'30'

R.V. Bhimani Company Secretary

Encl.: As above

27th Jul 2023| Ahmedabad Arvind Limited Q1 FY24 results Investor Review Note

Safe harbour statement

Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management's current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of Arvind Limited or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document. This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Q1 FY24 performance was flat on a sequential basis (similar to Q4 FY23)

• On a quarterly basis, Q1 performance was similar to Q4
  • Denim volume recovered by 2M meters which offset drop in Woven volume
  • Garments produced over 800k additional pieces leading to a quarterly output of 7.4M pcs of full garments
  • Fabric price realisation softened slightly reflecting lower RM prices; Textile margins improved by 40 bps
• Compared to Q1 of fy23, revenues and operating profits were lower by 21% and 18% respectively
  • Textiles and garment volumes were lower
  • AMD grew by 20%+ which offset the impact of Textiles
• LT debt reduced by ₹123cr (19%) in line with our stated plan
  • LT debt stood at ₹529cr at the quarter close
  • Overall debt reduced by ₹26 Cr during the quarter

Consolidated P&L | steady performance on sequential basis

AllfiguresinCrsINR	Q1FY24	Q1FY23	YoYChange	Q4FY23	QoQChange
fromOperationsRevenue	1853,	2352,	21%-	1881,	-1%
(ContinuingOperations)EBIDTA	180	220	-18%	191	-5%
EBIDTA%	97%	94%		101%
OtherIncome	12	8		12
Interest	37	40		38
(ContinuingOperations)CashAccruals	156	188	-17%	165	6%-
Depreciation	65	62		66
PBT	91	126		99
Tax	22	17		16
PAT	65	106		83
ExceptionalItem	1	0		9
ProfitfromDiscountinuingOperations	0	7-		5
ProfitNet	66	98		97

Notes: • Exceptional item Rs. 1.04 is on account of recovery of Ethiopia's bad debts

Textile margins improved while revenue declined| AMD continued to show growth of +20% with robust margins

InInrCr	Q1FY24			Q1FY23
Business	Revenue	EBIDTA	%EBIDTA	ROCE%	Revenue	EBIDTA	%EBIDTA	ROCE%
Textiles	1418	143	1%10	8%11	1976	192	7%9	3%17
AdvancedMaterial	342	53	5%15	7%31	279	32	5%11	1%19
Others&InterSegment	94	4-			97	4
Total	1853	192	104%	104%	2352	229	97%	134%

Textile revenues remained flat on a sequential basis

Textile revenues (₹ Crs)

Denim

• Volumes recovered by more than 1 Mn meters for the quarter
• Price realizations remained low reflecting soft cotton prices

Woven

• Q1 volume declined to 29 Mn mtr.

Garments

• Q1 volumes recovered by almost 1M pcs (to 7.4 M pcs for Q1)

Textiles

Denim and Garment volumes started to recover; Woven volumes in Retail were lower for the quarter

• Improved volumes in Denim and Garments as global brands and retailers have resumed buying post the inventory correction cycle
• Woven volumes saw slight decline in the retail segment as offtake remained sluggish

* Exports volumes includes sales made to export customers and shipments made to their garment factories in India

Textile

Price realisation trending down reflecting lower RM prices; Margins preserved

AMD delivered 20%+ growth in Q1 as planned

AMD Growth Plan				Key growth drivers
Revenues (₹ crores)		+22%342		Top-line growth delivered as planned, powered by•multiple engines–Human Protection key accounts continued toscale-up
	279		Y-o-Y	–Expanded capacities in woven and non-wovenlines getting utilized
	137	180	32%	–New accounts in Cooling Towers and othersegments scaled up quickly
	68	80	17%	–Glass matt business revived and deliveries ofMass Transport products picked-up steam
	74	82	14%	Operating margins improved•–Price reduction lagged input cost decreases
	Q1'23	Q1'24		–Operating leverage

EBITDA margins

Outlook for Q2 and near future | Textile volumes and margins likely to improve

• Export and domestic markets continue to remain in a holding pattern
  • Consumer demand in US has not fallen off the cliff, but continues to remain muted
  • EU/UK seemed to have bottomed out, though clear green-shoots are few
  • Domestic demand also remains soft as Q2 progresses, all hopes on the festival season in early Q3
• Most input prices remain soft at this point, though difficult to predict stability
  • Cotton prices are 45% down compared to peak of summer 2022
  • Other commodities and freight rates also are in the lower end of cycle
  • Energy (electricity rates) have been on a rise, though gas prices have declined
• Small increase in EBIDTA margin expected on back of volume growth
  • Expect Denim and Garment volumes to further inch up, Wovens to remain steady
  • AMD to continue its growth momentum
  • Marginal increase in textile margins compared to Q1
  • Capex program of ₹600 crores over 2 years is on course
  • Short-term debt to increase in tandem with business growth

Thank You!