Crompton Greaves Consumer Electricals Limited — Investor Presentation 2022

Aug 30, 2022

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Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1[st] Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai - 400 070.India T: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in CIN: L31900MH2015PLC262254

Date: August 30, 2022

To, BSE Limited (“BSE”), Corporate Relationship Department, 2ndFloor, New Trading Ring, P.J. Towers, Dalal Street, Mumbai – 400 001.	To, National Stock Exchange of India Limited (“NSE”), “Exchange Plaza”, 5thFloor, Plot No. C/1, G Block, Bandra- Kurla Complex Bandra (East), Mumbai–400 051.
BSE Scrip Code: 539876	NSE Symbol: CROMPTON
ISIN: INE299U01018	ISIN: INE299U01018
Our Reference: 83/2022-23	Our Reference: 83/2022-23

Dear Sir/Madam,

Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure – Requirements) Regulations, 2015 Intimation of Schedule of Institutional Investor Meeting(s)

Pursuant to Regulation 30 and Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“SEBI LODR Regulations”) kindly note below mentioned schedule of institutional investor meetings:

Date	Time	**Meeting Type **	Place
01st September,2022	10:30am to 06:00pm	One-on-one meetings	Mumbai
02nd September,2022	09:00am to 06:30pm
05th September,2022	09:00am to 06:00pm	One-on-one meetings / group meeting	Singapore
06th September,2022	09:00am to 03:00pm
07th September,2022	09:30am to 06:15pm	One-on-one meetings	Mumbai
08th September,2022	09:00am to 06:00pm

A copy of presentation to be used during the meetings with the investors is attached herewith. The same is also available on the website of the Company.

No unpublished price sensitive information (UPSI) is proposed to be shared during the meeting(s).

The above schedule may undergo a change due to exigencies on the part of the investors/the Company.

We request you to kindly take the same on record, upload the same on your respective websites and the same be treated as compliance under the applicable regulations of the SEBI LODR Regulations.

Thanking you,

For Crompton Greaves Consumer Electricals Limited

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Pragya Kaul Company Secretary & Compliance Officer

Enclosed: Investor Presentation

August 2022

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Disclaimer

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This presentation is issued by Crompton Greaves Consumer Electricals Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person or entity. This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue or deal, or any solicitation of any offer to purchase or subscribe for, any securities of the Company or any of its affiliates, including subsidiaries, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person.

This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. This presentation should not be relied upon as a recommendation or forecast by the Company. Please note that the past performance of the Company, its subsidiaries and its associates is not, and should not be considered as, indicative of future results. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.

This presentation may not be copied or disseminated or reproduced or forwarded, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of applicable laws and the Company will not be liable for the same.

The information contained in these materials has not been independently verified. None of the Company, its subsidiaries, its Directors or affiliates or associates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company undertakes no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.

This presentation has been prepared for publication in India and is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Any securities referred to herein may be offered and sold (i) in "offshore transactions", as defined in, and in reliance on Regulation S under the U.S. Securities Act (“Regulation S”) and the applicable laws of the jurisdictions where those offers and sales are made; and (ii) to "qualified institutional buyers" as defined in Rule 144A under the U.S. Securities Act (“Rule 144A”), in transactions exempt from registration under the U.S. Securities Act.

This presentation is not intended for distribution or publication in the United States (including its territories and possessions, any state of the United States and the District of Columbia). Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that (i) you are located outside the United States, and you are permitted under the laws of your jurisdiction to receive this presentation or (ii) you are located in the United States and are a “qualified institutional buyer”(as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

1

Crompton Overview (1/2)

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Crompton is the #1 electrical consumer durables company with an 80+ year old brand and a pan-India footprint

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Large market with Leading brand in Consumer Market leading secular growth Electricals distribution reach

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Highly experienced management team

#1 in Fans INR 41,000 Cr. estimated to #1 in Residential Pumps Channel Partners – 4,000+ grow to INR 55,000 Cr. 6% Top 3 in Lighting & Water Retailers – 1,50,000+ CAGR (22-27)[1] Heaters

80+ Years of Experience with Top Management

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Strong track record of Institutionalized cost saving Industry leading financial product innovation program metrics 17% PAT CAGR[3] ~50% revenue from new 2-3% savings YoY 155% FCF Conversion products[2] 57% ROCE[4]

Source: Market size and market growth estimates based on Market Pulse and Management Estimates Note: (1) Market growth across categories (2) SKUs launched in the last 3 years are classified as new products (3) PAT CAGR is calculated based on reported PAT for FY16-22. (4) RoCE is adjusted for Butterfly acquisition.

2

Crompton Overview (2/2)

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Crompton has cemented its position as the market leader in fans and residential pumps while delivering long term industry-leading profitable growth through strengthened product portfolio

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		Fans		Lighting		Pumps			Appliances
Market Share		28%		8% (LED Lighting)		17%		13% (Water Heater) 8% (AirCoolers)
Market Position		#1		#3		#2		#3 (Water Heater) #4(AirCoolers)
		Ceiling Fans		LED Lamps		Residential Pumps		Water	Heaters
		Table Fans		LED Battens & Panels		Agricultural Pumps		Air Coolers
		Pedestal Fans		LED Streetlights and		Solar Pumps		Mixer	Grinders
		Wall-mounted Fans		Floodlights		Specialty Pumps		Irons
Product Portfolio	 	Ventilating Fans Heavy-Duty Exhaust Fans	 	High Mast/ Streetlighting Poles Interior and Architectural				Small	Kitchen Appliances
		Air Circulators		Lighting
		Industrial Fans		High Intensity Discharge
				Lamps
				Incandescent Lamps
				CFL/FTL

Source: Market Pulse data for Fans and Lighting; Management Estimates for Pumps, Water Heaters and Air Coolers

3

Crompton has acquired Butterfly - A transformational step to becoming a leading player in Small Domestic Appliances

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a Creates a platform for a full kitchen play – strong connect with every home

• ►Immediately achieves scale in kitchen appliances, increasing share of SDA in mix

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Foray into new markets with complementary product portfolio

• ►Complementary segmental presence

• ►Enhanced R&D, technology, manufacturing capabilities key to future expansion

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Ability to unlock synergies

• ►Growth synergies including new channel, markets, products and brand

• ►Cost synergies including in-house manufacturing, economies of scale, etc.

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4

Complete SDA portfolio with a strong presence in kitchen segment

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1 #2 #3 #4
Immediate scale in key …backed by capabilities in …a strong distribution and …and a ready manufacturing &
kitchen segments… existing appliance segments... pan-India presence… R&D infrastructure…
Mixer #2 Heaters #3
Grinders
Pan-India
South
Stoves & #1 Fans #1
Cooktops
Pan-India
South
Tabletop
Wet #1 Coolers #4
Grinders
South Pan-India
#3
Cookers Irons
South
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…creates a perfect opportunity for innovation and expansion in core and adjacent categories

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Sources: Company, Research Reports, Analyst Estimates

5

Butterfly is a leading kitchen appliances player with a strong foothold in South India

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35+ year old brand Top 3
Well reputed brand with high In core categories of Mixers, cookers,
consumer recall in South, known for stoves in South-India
Aesthetics and Product Quality
INR 1,005 Cr CAGR ~18%
Revenues in FY22 Consistent Growth over past 5 years
(FY17-22)
500+ | 25,000+ E-Commerce
Exclusive Distributors | #1 in Flipkart in mixer grinders
Total Touchpoints pan-India with #1 in Flipkart and Amazon in wet
deep penetration in South India grinders and gas stoves
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No 1
In South India for Wet Grinders and
LPG Stoves
In-house Capability
~80% of Revenues from In-house
Manufactured Products
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Strong R&D

Pioneered shift to healthy eating with introduction of stainless steel cookers and ISI certified flasks

Butterfly’s strong brand, design & technical capabilities and success in e-commerce are powerful enabling factors for its sustained industry leading growth

6

Butterfly's portfolio covers a significant breadth of the kitchen appliances market

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Kitchen Appliances
LPG Stoves Mixer Grinder Wet Grinder Juicer Mixer Electric Rice Chimney Power Hobs Built In Hobs
Grinder Cookers
Others
Cooker & Cookware
Core
Hand Electric Pop Up
Blender Kettles Toaster
Pressure Cookers
Sandwich Vacuum Water
Maker Flasks Bottles
Non-Stick Cookware
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A full kitchen play which increases connect with the entire home
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7

Butterfly’s 3 core categories account for >50% of the branded kitchen appliances market at ~5% market share representing tremendous opportunity for growth

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Category FY22 Est. Market Size (INR Cr) FY22 Butterfly Sales (INR Cr) FY22 Butterfly Market Share
Mixers Grinders
3,500-3,800 401 ~11%
(incl. Wet Gr.)
Pressure Cookers 3,000–3,200 169 ~5%
Gas Stoves 3,000–3,200 248 ~8%
Others [1] 8,500-9,000 198 ~2%
Total 18,000–19,000 1,005 ~5%
Core Categories
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1. Others include non-stick cookware, chimneys, hobs, induction stoves, electric kettles, rice cookers, OTG, sandwich makers, water purifiers & coffee makers Market size estimates done for branded players Source: Nirmal Bang Institutional Equities Research report, management and expert estimates, Butterfly sales data FY22

8

Favourable demographics & changes in consumer behaviour will further grow the addressable market

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1
Increasing Urbanization
Statista
(% of total population) –
37.7%
35.4%
33.2%
2016 2021 2026E
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2
Rise in number of nuclear households
(% of total population) – NHFS Survey
71.0%
66.0%
57.0%
1999 2010 2016
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3
Higher preference for home-
cooked/healthier food post Covid
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4
Higher usage of appliances as people
spend more time at home post Covid
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• 2.7x rise in viewership of cooking recipes owing to home cooking – Nielsen TV & Smartphone report

• 6 out of 10 organizations have adopted ‘work –

• from home’ policy post Covid relaxations Grant Thornton

9

Butterfly has made a strong start in Q1 FY23; 85% revenue growth and >3x EBITDA growth YoY

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Q1 FY22 Actuals Q1 FY23 Actuals Growth
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	INR Cr	% to sales	INR Cr	% to sales
Net Revenue1	136.5		253.5		1.9x
Gross Margin2	35.1	25.7%	71.1	28.1%	2.0x
EBITDA	7.7	5.6%	26.1	10.3%	3.4x
PBT	1.4	1.0%	20.4	8.0%	14.6x
PAT	1.0	0.7%	13.2	5.2%	13.2x

1. Net Revenue is net of schemes, discounts, commissions and warranty costs

2. Gross margin reporting in line with Crompton (net of manufacturing cost)

10

Over the last few months, Butterfly has strengthened its organizational capabilities

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People Commitment

• Long-term Security & Stability

• ►Launch of employee travel policy

• ►Group term life insurance for all employees

• Empowerment & Transparency

• ►Transparent compensation structure

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Operational Excellence

• Robust review mechanism deployed

• in sales, NPD and quality

► Cost excellence program initiated (identified savings of 5-7% cost base)

• Safety enhanced through multiple

• initiatives

► Key leadership positions filled to support future growth

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Employee Pulse Check Survey

Have confidence that "the new leadership team will 98% effectively lead us into the future"

Believe that "the company 99% will remain a great place to work "

Feel " personally committed to making the company successful"

98%

Quarterly townhall meetings driving engagement

11

Key capability gaps bridged to prepare the organization for future growth

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Managing Director
R. Sriram
Sales Production Procurement HR / IR Finance Safety
Balachandran
R. Vishwanath C. Sundaraj G Pandian R. Nagarajan Lawrence
T.B
Change
Marketing Quality R&D Compliance
Champion
K.
Anil G Parthasarthy Priya Varshinee Shalini A.
Shanmugavelu
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New hires
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12

Our goal is to become a pan India leading brand in kitchen appliances in 5 years

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Leadership in core categories[1] with 1520% share pan India

Industry leading margins

Swift profit to cashflow conversion

1. 3 core categories - mixers (including wet grinders), stoves, cookers - 80% of FY22 revenue

13

Going forward, our focus is on five key levers to reach leadership position pan-India

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Portfolio Premiumization		Expand Distribution		Build Brand Excellence		Strengthen Operations
• Premiumize portfolioin core categories in South • Build portfolio as per regional nuances, e.g. juicer mixer grinders for North • Build and grow 2 more categories at par with core categories		• Grow retail footprint 3x outside South (~20,000 new outlets) • Retain leadership positionin e-commerce • Grow emerging channels – modern retail and exports		• Invest in brand building through ATL and BTL to grow brand awareness and consideration to >80%		• Invest in building capability(digital marketing, R&D, supply chain, modern retail) to meet future business needs • Institute acost excellence cultureto achieve 1-2% savings each year

Drive Innovation

Build internal capabilities to drive organization-wide innovation and excellence

14

Thank You!