Compuage Infocom Ltd — Investor Presentation 2020

Jun 24, 2020

24th June, 2020

To, Dalal Street, Bandra (B), Mumbai 400 001. Mumbai —

• Security Code: 532456 ISIN: 1NE070C01037

The Corporate Services Dept. National Stock Exchange of India Ltd., BSE Ltd. Exchange Plaza, Phiroze Jeejeebhoy Towers, C-I, Block G, Bandra Kurla Complex, 400 051.

Symbol: COMPINFO

Sub: Investor Presentation

Dear Sir/Ma'am,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, please find enclosed herewith the June 2020 Investor Presentation for Q4 & FY20.

This is for your information and records.

Thanking you,

Yours faithfully For Compuage Infocom Limited

Ruchita Shah Company Secretary

Place: Mumbal

End: As above.

0-601/602 & G-601/602. Lotus corporate Park. Graham firm Steel Compound, Western express Highway, Goregoon (E), Mumbai— 400063. India. Ph.:+91-22-6711 4444 Fw'+91-22 67114445 nfocompuageIndIa con, vAy. compuogeindia .com ON: L99999MH1 Q99PLC1 35914

Enhanced Commitment

Enduring Growth

COMPUAGE INFOCOM LIMITED

Investor Presentation June 2020

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Compuage Infocom 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 whatsoever. 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 Presentation 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 Presentation. This Presentation 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 Presentation is expressly excluded.

Certain matters discussed in this Presentation 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 tire industry in India and world-wide, 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 Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Q4 & FY20 Financial Highlights

Strong Q4FY20 Performance

Key Highlights

• ❑ Revenue was primarily impacted due to zero business operations towards end of March on account of lockdown imposed by Government to prevent the spread of COVID-19
• ❑ Inspite of drop in revenue, our Gross Profit was at similar levels as compared to last year on the back of higher revenue contribution from more profitable business segments like "Enterprise" & "Cloud Services"
• ❑ EBITDA increased by 44% on account of our efforts towards cost rationalisation in employee & other operating expenses

All-round FY20 Performance

❑ Announced FY20 Dividend at 10% i.e Rs. 0.2 on Face Value of Rs. 2

❑ Focus towards more profitable business segments & cost optimization to enhance company's return on investments ❑ Deleveraging strategy to continue going forward for optimising the capital structure

Covid-19 Impact on the Business

Digital Revolution Favourable Trends Expected post Pandemic COVID-19 Rising Adoption of Digital Devices – Smart Digital devices like smartphones & laptops demand to increase as people realise the important role it plays to stay connected & for entertainment Work From Home will lead to rise in demand for better communication devices & softwares which enhances the company's productivity Cyber Security Services – Companies will increase spending on cyber security softwares as employees working from remote locations are vulnerable to malware attacks Cloud Services – Companies will invest in best in class cloud services as employees need to access data from various locations remotely Importance of Distributors – Companies working through distributorship model will benefit as efficient supply chain will play a crucial role for recovery

Compuage – Well Placed to take the Advantage

Emerged as one of the leading IT and Mobility products and services provider in India

Market Leadership

Continuous and strategic investments in technology upgradation across all businesses for efficient operation & better productivity

8

Consolidated Profit & Loss

Profit & Loss Statement (Rs. Crs)	Q4FY20	Q4FY19	YoY%	Q3FY20	QoQ%	FY20	FY19	YoY%
Revenue from Operations	1,043.4	1,294.5	-19%	974.4	7%	4,232.5	4,514.8	-6%
Other Income	5.0	4.1		4.5		16.7	16.5
Total Income	1,048.4	1,298.6	-19%	979.0	7%	4,249.2	4,531.4	-6%
Cost of Goods Sold	993.6	1,243.9		934.9		4,054.4	4,342.9
Gross Profit	54.8	54.7	0%	44.1	24%	194.9	188.5	3%
Employee Expenses	9.6	15.2		9.3		38.5	44.3
Other Expenses	12.9	17.1		11.9		51.4	50.6
EBITDA	32.3	22.4	44%	22.8	42%	105.0	93.6	12%
Depreciation	1.0	-0.1		1.1		4.2	4.1
EBIT	31.3	22.5	40%	21.7	44%	100.8	89.4	13%
Finance Cost	18.1	13.5		14.5		60.9	54.3
Profit beforeTax	13.2	9.0	47%	7.2	82%	40.0	35.2	14%
Tax	2.8	3.0		1.8		9.4	12.5
Profit After Tax	10.5	5.9	76%	5.4	92%	30.5	22.7	34%
Other Comprehensive Income	-2.1	0.0		0.0		-2.1	0.0
Total Comprehensive Income	8.3	5.9	40%	5.4	53%	28.4	22.7	25%
EPS	1.3	0.9	41%	0.8	52%	4.4	3.5	25%

9

Consolidated Balance Sheet

ASSETS (Rs.Crs)	Mar-20	Mar-19
Non-Current Assets
Property, Plant & equipment	50.1	53.9
Intangible Assets	0.0	0.0
Financial Assets
i) Investments	0.7	0.5
ii) Other Financial Assets	0.0	0.0
Total Non-Current Assets	50.9	54.4
Current Assets
Inventories	338.0	301.4
Financial Assets
i) Investments	0.0	2.5
ii) Trade Receivables	554.3	644.6
iii) Cash and Cash Equivalents	9.1	44.6
iv) Bank Balances	70.5	73.4
v) Loans	5.1	5.3
vi) Other Financial Assets	11.2	7.5
Current Tax Assests	5.6	3.8
Other Current Assets	96.9	103.6
Total Current Assets	1,090.7	1,186.8
Total Assets	1,141.5	1,241.2

EQUITY AND LIABILITIES (Rs.Crs)	Mar-20	Mar-19
Equity
Equity Share Capital	13.0	13.0
Other Equity	189.1	163.8
Total Equity	202.1	176.8
Non Current Liabilities
Financial Liabilities
i) Borrowings	21.4	22.9
ii) Provisions	1.8	2.3
Deferred Tax Liabilities	4.1	6.2
Total Non-Current Liabilities	27.3	31.3
Current Liabilities
i)Borrowings	450.9	460.3
ii)Trade Payables	392.6	507.5
iii) Other financial liabilities	33.5	39.2
Other Current Liabilities	34.8	25.6
Provisions	0.3	0.5
Total Current Liabilities	912.1	1,033.1
Total Equity and Liabilities	1,141.5	1,241.2

Cash Flow Statement for Six Months Ended (Rs in Cr)	FY20	FY19
Profit Before Tax	40.2	35.0
Adjustments for Depreciation and other items	45.2	42.3
Operating profit before working capital changes	85.4	77.3
Changes in working capital	-54.5	-97.3
Total Cash Flow from Operations	30.9	-20.0
Direct taxes paid (net of refund)	-12.6	-14.2
Net Cash Flow from Operating Activities	18.3	-34.2
Net Cash Flow from Investing Activities	21.4	4.3
Net Cash Flow from Financing Activities	-75.3	28.3
Net Change in cash and cash equivalents	-35.5	-1.7

Recent Partnerships

About the Company

AT AGLANCE		FY20 Total Income		Channel Partners	Presence
Foundedin1987	Compuagehas evolved into a seamlessdistribution intermediary of top of-theline technology products and solutionslike PC Components and Peripherals, PCs,Enterprise Solutions, Cloud Computing,Mobility Products & Services		Rs. 4,249 Crs		12,500+Online & OfflineChannel Partners	600+Presence across Indian Citiesthrough Branch Offices, ServiceCentersand Channel Partners
At Compuage,we are known for performance through partnership andcapabilities to market technological advancements to various customersegments. We are the partner by choice because of our wide reseller networkthat is steered by our superior technical assistance, well-defined go-to-marketstrategy and prudent distribution practices		29Global Brands		69Service Centers	46Sales Offices
Listing in2000	HeadquartersMumbai	Fortune 500 IndianCompany	28Warehouses		800+Employees	Global Footprint7 countriesacross SAARC Nations

Business Flow

18 The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only

Diversifying Risks

The Company has successfully entered the Cloud segment to offer several Cloud –based offerings which will be the next growth engine

Board of Directors

Atul Mehta Chairman & Managing Director

Bhavesh Mehta Director & COO

B.Com and M.Com with specialization in Marketing. Associated with the Company since two decades with expertise in sales and marketing

G.S. Ganesh Independent Director

A Chartered Accountant by qualification and Investment Banker by profession with experience of 30+ years. His areas of expertise include, Financial Restructuring, Mergers and Acquisitions and Project Financing

B.Com and MBA in Finance from USA. Founder Member of the Company with focus on Strategic Planning and Financial Management

Vijay Agarwal Independent Director

M.Com and Chartered Accountant by qualification. He has been in practice for more than 30+ years

Fatima Nasab Independent Director

Expert in Human Behaviour

Management Team

Awards & Accolades

Strategy

Brand Acquisitions

• Adding product lines that would enable Compuage offer a complete basket of products to its channel partners.

Penetrating Untapped Geographies

• To be present across the metro cities as well as tier II and tier III cities
• Penetrate across underserved geographies of the nation to help drive volume for the distribution intermediaries

Diversified Sales Channels

• Serving important link between channel partner and end customer
• To be present across all forms of channels across the country

Enhance Service Offerings

• Hardware Services and Technical Support - Pre and Post Sales

Target

• Revenue of US$1 billion in 3 years
• 2X Profitability
• Penetrate 15000 Partners in 800 cities in 3 years.

Historical Financial Highlights

For further information, please contact:

Company : Investor Relations Advisors :

Compuage Infocom Ltd. CIN – L99999MH1999PLC135914

Ms. Ruchita Shah Email Id – ruchita.shah@compuageindia.com

www.compuageindia.com

Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285

Mr. Shrenik Shah / Ms. Ami Parekh shrenik.shah@sgapl.net / ami.parekh@sgapl.net +91 96647 64465 / +91 80824 66052 www.sgapl.net