Data Patterns (India) Limited — Investor Presentation 2023

Jan 29, 2023

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Date: 29.01.2023

To Na�onal Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra(E), Mumbai -400051 NSE Symbol- DATAPATTNS	To BSE Limited 25thFloor, P.J. Towers, Dalal Street, Mumbai- 400 001 Company Code: 543428

Sub: Investor’s Presenta�on

Dear Sir/Madam,

In pursuance to Regula�on 30 of SEBI (Lis�ng Obliga�ons and Disclosure Requirements) Regula�ons, 2015, please find enclosed herewith investor presenta�on for Earnings Conference Call for quarter ended 31st December, 2022, scheduled on 30[th] January, 2023.

A copy of the said presenta�on is also being uploaded on the Company’s website.

Thanking You

For Data Pa�erns (India) Limited

MANVI BHASIN Digitally signed by MANVI BHASINDN: C=IN, O=PERSONAL, T=1378, OID.2.5.4.65=f0b27f303e3cc8a6da91f95551bd598964aab888271f2e5d3b2d48d1b2c30046, PostalCode=110085, S=Delhi, SERIALNUMBER=3c0768b9bf1c50ea6ce42f252de7b5cceaf6647f293b0599ec1987d5424166aa, CN=MANVI BHASINReason: I am the author of this documentLocation: your signing location hereDate: 2023-01-29 16:45:49Foxit Reader Version: 10.0.1

Manvi Bhasin

Encl as above

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Data Patterns ( India ) Limited Investor Presentation Q3 and 9MFY23

January, 2023

Q3 and 9MFY23 Earnings Presentation

Disclaimer

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~~`~~

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Data Patterns (India) Limited (the “Company”) solely for the 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.

Certain statements in this presentation concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures and general economic conditions affecting demand / supply and price conditions in domestic and international markets. The company does not undertake to update any forward –looking statement that may be made from time to time by or on behalf of the company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable. 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. The Company does not make any promise to update/provide such presentation along with results to be declared in the coming years.

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Q3 and 9MFY23 Earnings Presentation

Agenda of the Presentation

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Chairman’s Statement

Overview of Nine Months

Q3 and 9M Financial Performance

Opportunities in Pipeline Corporate Overview

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Q3 and 9MFY23 Earnings Presentation

CMD’s Comment on Nine Month’s Performance

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Mr. Srinivasagopalan Rangarajan Promoter, Chairman & Managing Director

“ We exceeded our own internal goals by achieving revenue growth of 2x times in 9MFY23, the best ever in our With the new company's history. expectation of orders in Q4, we are focused on improving execution effectiveness to promote operating leverage and maintaining a diversified order book. With the new to commence in manufacturing facility anticipated Q4FY23, we are well positioned to benefit from the strong sectoral tailwinds given our R&D prowess and our manufacturing capabilities. ”

4

Q3 and 9MFY23 Earnings Presentation

Our Achievements Record Profitability in 9MFY23

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Strong order book as on 31[st] Dec at Rs 888cr

Record Revenue: grew 91% YoY to Rs 268cr EBITDA 2x at Rs 99cr

Healthy Gross Margins at 65% and EBITDA Margins at 37%

Strong Balance Sheet; Net Debt Free Company

High Return Ratios - RoE and RoCE at 22% and 29% respectively

New Manufacturing facility is expected to be commenced from Q4FY23

Order inflow in Q3 of Rs 163cr, grew 3x YoY

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Rs 18cr Dividend Paid ; DPS was Rs 3.5

Export revenue and order inflow accounts to Rs 14cr and Rs 11cr respectively

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Revenue CAGR of 33% and EBITDA CAGR of 73% over FY19-FY22

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Cash in hand at Rs 61cr

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PAT at Rs 69cr; doubled

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5

Q3 and 9MFY23 Earnings Presentation

• RoE and RoCE calculated on TTM basis

Order Inflow in Q3FY23

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Order Intake of Rs 163cr- Meeting Expectations

Radar Electronic Warfare Avionics and Navy Others Rs 7cr Rs 24cr Rs 75cr Rs 57cr

Development and Development order from Production orders from DRDO DRDO and BEL

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Production order from HAL and AAI

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Production order from BrahMos Other Production orders

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6

Q3 and 9MFY23 Earnings Presentation

Order Book Buildup in Q3FY23

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Order Book as on date is Rs 1,014cr including orders received in Jan’23 and those finalised and yet to be received

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Order Back
Orders as on
30 [th] Sep, New Orders Orders log as on
31 [st] Dec
2022 in Q3FY23 Executed
2022
Rs 8,366 mn Rs 1,633mn Rs 1,118mn
Rs 8,881mn
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We are participating in large tender values with MOD under Make 1 and Make 2 categories

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Q3 and 9MFY23 Earnings Presentation

CFO’s Comment on Quarter's Performance

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Mr. Venkat Subramanian Chief Financial Officer

“In we achieved our best ever in the Q3, performance history of the company. We achieved a healthy gross margin of 66% and a revenue growth of 2.5x during Q3FY23. With our EBITDA our EBITDA and net doubled, profit margins stood strong at 42% and 30% respectively. We had a strong order intake in Q3 giving us excellent revenue visibility. We are to our always striving improve working capital a net status and a robust management. Having debt-free balance sheet, we are fully prepared for the next phase of expansion.”

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Q3 and 9MFY23 Earnings Presentation

Q3 and 9MFY23: Financial Performance

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Particulars (Rs. Mn)	Q3FY23	Q3FY22	Q2FY23	9MFY23	9MFY22
Revenue from Operations	1,118	438	882	2,684	1,403
Gross Profit	742	385	572	1,756	1139
Gross Profit Margin(%)	66.3	87.8	64.9	65.4	81.2
EBITDA	470	156	302	985	535
EBITDA Margin (%)	42.1	35.6	34.2	36.7	38.1
Depreciation/Amortization	21	17	21	62	48
EBIT	449	139	280	922	487
EBIT Margin(%)	40.2	31.6	31.8	34.4	34.7
Other Income	19	7	19	54	14
Finance Cost	21	27	12	49	75
PBT	446	119	287	927	426
Tax expense	113	30	76	241	105
Profit(Loss)for theperiod	333	90	211	687	322
PAT Margin (%)	29.8	20.4	23.9	25.6	22.9
EPS(Rs)	6.4	1.9	4.1	13.2	6.9

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Q3 and 9MFY23 Earnings Presentation

Record Revenue: 2x in 9M

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Revenue – Q3FY23 and 9MFY23

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Rs 1,118mn
Rs 438mn
Q3FY22 Q3FY23
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Rs 2,683mn
Rs 1,403mn
9MFY22 9MFY23
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Q3 Highlights

9M Highlights

• Revenue grew 2.5x to Rs 1,118mn

• Revenue doubled at Rs 2,684mn

• Production revenue was Rs 727mn

• Production revenue was Rs 1,678mn

• Gross Margin at 66%; EBITDA up 3x

• Gross Margin at 65%; EBITDA growth of 84% YoY

• Q3 PAT at Rs 333mn; up 4x

• 9M PAT at Rs 684mn; up 2x

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6

Q3 and 9MFY23 Earnings Presentation

Diversified Revenue Profile

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Developmental contracts/order book translates to strong production revenues

Revenue in INR mn

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Service Rs 1,118mn Rs 3,108mn
Rs 2,683mn
Development 7% 7%
Production 6%
25%
28%
31%
Rs 1,403mn
Rs 438mn
13%
19% 9%
68%
65%
13% 63%
67%
79%
Q3FY22 Q3FY23 9MFY22 FY22 9MFY23
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Q3 Highlights

9M Highlights

• Revenue from Development contracts showed strong growth; grew 5x

• Revenues from Production contracts grew 2.5x

• Revenue from Development contracts showed strong growth from negligible amount in 9MFY22; grew 7x

• Revenues from Production contracts grew 52% YoY; order inflow in 11

• 9M majorly driven by Development contracts

• Q3 and 9MFY23 Earnings Presentation

Q3FY23: Revenue Breakup

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||~~~~|~~~~|~~~~|~~~~|~~`~~|
|---|---|---|---|---|---|
|||||||
||Product
Rs mn
ATE
138
AVIONICS
202
Communication
157
EW
193
Radar
334
Radar Processor
16
AMC/Service
78
Total
1,118|||||
||Product|Rs mn|Customer||Rs mn|
||ATE|138|BEL||2|
||||Brahmos||60|
||AVIONICS|202||||
||||DoS||39|
||Communication|157||||
||||DRDO||403|
||EW|193||||
||||Export||140|
||Radar|334||||
||||HAL||188|
||Radar Processor|16|Indian Navy||4|
||||MoD||282|
||AMC/Service|78||||
||||Total||1,118|
||Total|1,118||||

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Q3 and 9MFY23 Earnings Presentation

Strong and Growing Order Book

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Rs 8,880mn
Rs 8,880mn
7% 6% 7%
Service
6%
Development
Production
Rs 5,770mn Rs 4,760mn
56%
10% 56%
13%
22%
25%
38%
38%
68%
62%
FY22 9MFY23
Q3FY22 Q3FY23
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Order Book in Rs mn

Q3 and 9MFY23 Earnings Presentation

13

Order Inflow

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Expects Further Order Inflow of around Rs 150+cr in Q4FY23

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Order Inflows – Q3FY23 and 9MFY23
Service Rs 1,633mn
Development 7% Rs 6,802mn 7%
2%
Production 1%
20%
63%
Rs 494 mn 78% Rs 2,195 mn
1% 18% 2%
48%
36%
81%
50%
Q3FY22 Q3FY23 9MFY22 9MFY23
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Major order received in Q3FY23

Product	Customer	Order Type	Value(Rs mn)
FCS	BrahMOS	Production	400
EW	DRDO	Development	242
Radar	DRDO,DOS	Dev and Production	70
ATE	DOS	Production	13
Avionics	HAL and AAI	Dev and Production	751

Major order received in 9MFY23

Product	Customer	Order Type	Value (Rs mn)
Radar	DRDO	Development	3,624
FCS	BrahMOS	Production	400
Avionics	HAL	Production	174
Communication	DRDO	Development	157
EW	DRDO	Dev and Production	432

Q3 and 9MFY23 Earnings Presentation

14

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Robust Performance : Supported by Strong Financials
`
Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%)
88% 65% 65% 65% 66%
1,700
1,108
,1,118
742
882
572
684
442
386
438
Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
EBITDA (INR Mn) and Margins (%) Net Profit (INR Mn) and Margins (%)
20% 36% 21% 24% 30%
36% 51% 34% 34% 42%
616
875
333
470
142
157 302 211
229 90
Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
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Margins

Q3 and 9MFY23 Earnings Presentation

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Investment in Business

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Investment in Our People

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• ✓ We hired 400+ employees in 9M of this year

• ✓ Plans to hire 100 more in the remaining part of year

Investment in Facility

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• ✓ Spent Rs 36cr till now for expansion of the new facility

• ✓ By the end of Q4 it will get fully operational

Investment in Technology

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• ✓ Successfully completed site acceptance test of two Precision Approach Radar

• ✓ Nominated as Development cum Production Partner (DCPP) for Dornier upgrade

16

Q3 and 9MFY23 Earnings Presentation

Corporate Overview

Q3 and 9MFY23 Earnings Presentation

Data Patterns – One of the fastest growing companies in the Defence and Aerospace Electronics sector in India…

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Among the few vertically integrated defence and aerospace electronics solutions providers catering to the indigenously developed defence products industry

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1 Vertically integrated defence and aerospace electronics solutions Defence Aerospace 30+ Years of experience
with end to end capabilities and a large addressable market
P roducts supplied for programmes
Focused on in-house development and manufacturing facilities
2 Design to Delivery LCA-Tejas, Light Utility
led by innovation and design and development efforts
Helicopter, BrahMos missile
Beneficiary of shifting procurement trends in Defence – Aatma
Increasing indigenization,
3 TAM of USD 4.65 bn by 2030
Nirbhar Bharat , Make in India, new defence acquisition policies among Domestic defence procurement, Higher
growing at CAGR – 9% from 2020
others share of electronics in warfare
Diversified order book with marquee customers along with state of the Rs. 8,880 mn
4
Rs. 1,787 mn
art manufacturing facilities Order book as on Dec ’22
Order book as of Apr’18
Many senior personnel
5 Experienced management team and skilled workforce associated with Company for 1036 employees with more than
500 qualified engineers
more than 2 decades
Highest Revenue growth, EBIDTA margin, ROCE and ROE (for FY21 & 33% 72% Gross 45% 24% 33%
6 Revenue CAGR Margin% EBITDA%
FY22) amongst key Indian defence and aerospace companies (FY22) (FY22) RoCE (FY22) RoE (FY22)
(FY19-FY22)
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One of the fastest growing companies in the Defence and Aerospace Electronics sector in India

*addition of market size of specific industries from the DRHP

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Q3 and 9MFY23 Earnings Presentation

With a Consistent Track Record of Profitable Growth

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38%+~ % growth CAGR FY19-FY22 ~ 33% Revenue CAGR from FY19-FY22
Robust revenue and
order book growth
Order Book
Rs mn Revenue from operations
Rs mn
8,880
3,108
2,684
5,855 2,239
Consistently higher 4,980 4,760
1,561
gross margins and 1,815 1,311
improving EBITDA
margin%
FY19 FY20 FY21 FY22 9MFY23
FY19 FY20 FY21 FY22 9MFY23
High Gross margin ~ 73% EBITDA CAGR from FY19-FY22
Rs mn Gross Profit & Gross Margins EBITDA & EBITDA Margins
74% 72%
Rs mn
72% 65% 1,410
69%
70% 919
65% 985
68% 2,247 45%
41% 37%
66%
63% 432
64% 1,535 257
62% 1,041 1,756 28%
836 20%
60%
58%
FY19 FY20 FY21 FY22 9MFY23
FY19 FY20 FY21 FY22 9MFY23
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Q3 and 9MFY23 Earnings Presentation

Growing Profitability

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Improving PAT Margins Improving ROE and ROCE
Improving PAT
margins and high ROE ROCE
PAT and PAT margins
ROCE
Rs mn
38%
939 31% 33%
29%
687 23% 24% 22%
556
30% 15%
26%
25% 12%
210
77 6%
13%
6%
FY19 FY20 FY21 FY22 9MFY23
FY19 FY20 FY21 FY22 9MFY23
Strong cash flow
Strong operating cash flow generation
Lower debt levels/ leverage
generation and low
leverage
Debt-Equity ratio
Cash generated from operations
Rs mn
0.45
0.39
549
0.16
152
0.01
FY19 FY20 FY21 FY22 H1FY23
0.02
Mar19 Mar20 Mar21 Mar-22 Sep-22
(45)
(333) (720)
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Q3 and 9MFY23 Earnings Presentation

Well Managed Working Capital

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Debtor Days and T/O Ratio
1.3 1.3 1.4 1.6 1.5
286
270
254 246
233
FY19 FY20 FY21 FY22 H1FY23
Inventory Days and T/O Ratio
1.5 2.0 3.0 2.6 2.1
241
186
175
141
120
FY19 FY20 FY21 FY22 H1FY23
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Creditor Days and T/O Ratio
4.7 9.0 18.6 8.1 6.8
79
53
45
40
20
FY19 FY20 FY21 FY22 H1FY23
Cash Conversion Cycle
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449
416
355 367
329
FY19 FY20 FY21 FY22 H1FY23
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21

*All Days are calculated on revenue on TTM basis

Q3 and 9MFY23 Earnings Presentation

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Through Well-Invested and State of the Art Manufacturing Facilities

|~~~~|~~~~|~~`~~|
|---|---|---|
||||
|~ 100,000 sq. ft
Aggregate of built up area
of manufacturing facility
~ 5.75 Acres
Of land in Chennai, SIPCOT
area
Our systems and processes are subject to
periodic audit by customer such as
✓
Indian Government Space Organization
✓
Hindustan Aeronautics Limited (HAL)
✓
Other Government departments
Key features of manufacturing facility
✓
100,000 class clean room
✓
Electronic assembly facility
✓
BGA repair work station with display
✓
Manual soldering certified to Space grade standards
✓
EMS assembly capacity of 600 boards per day
✓
Capability to handle complex boards with 22 layer, 6k
components and 21k solder points
✓
Dedicated 70 work stations for testing modules and
small systems
✓
Harness preparation of 2k points per day
✓
20
Dedicated
Mechanical
assembly
stations
to
assemble small and large systems
and various others…
~2.81 acres
Land for proposed
expansion
Proposed expansion
✓
Spend Rs 300mn towards upgrading and expanding existing
facilities
✓
Proposed doubling of floor area and manufacturing capacity
✓
Addition of large & heavy equipment, integration of large
radars & mobile electronic warfare systems.
Environmental
Certification
- JSS55555
- MIL-STD-461
- MIL-STD-810 including for
Highly Accelerated Life Test /
Highly accelerated stress
screening.|||
|~ 100,000 sq. ft
Aggregate of built up area
of manufacturing facility
~ 5.75 Acres
Of land in Chennai, SIPCOT
area
~2.81 acres
Land for proposed
expansion
Environmental
Certification
- JSS55555
- MIL-STD-461
- MIL-STD-810 including for
Highly Accelerated Life Test /
Highly accelerated stress
screening.|||

22

Q3 and 9MFY23 Earnings Presentation

Diverse Product Offering

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Category	Select Product offerings	Category	Select Product offerings
Commercial off the shelf (COTS)	COTS modules designed in context of reusable building blocks for building Military Electronics systems with a quick turnaround time VPX Multi core SBC VPX Zynq MPSoC based Quad Core High Density DIU	BrahMos Programme	• Fire control systems • Mobile autonomous launcher • Airborne launcher and • Other electronic systems Air Version Launcher for Brahmos Sukhoi-30 Missile Checkout System
Avionics	Avionics displays used on : • Light Combat Aircraft (“LCA”), • Intermediate Jet Trainers • Light Utility Helicopters (“LUH”) Light Utility Helicopter Cockpit display	Electronic Warfare	• Surveillance and intelligence gathering (“SIGINT”) • Further divided into COMINT and ELINT Digital Direction Finder Radar Warning Receiver Airborne Radar Warning Receiver
Communicati ons, ATEs and Satellites	• Underwater electronics / Communications / Other Systems • Automated Test Equipment (ATE) • Small and Nano Satellites Automated Test equipment for INS Shikra Oceanography Product	Radars	Surveillance radars Weather radars Coastal Surveillance Radar

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Q3 and 9MFY23 Earnings Presentation

Over Last Three Decades

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`
TERLS Tracking Radar 2021
Wind Profile
Radar Micro Satellite Designed wide open RWR and
ELINT for airborne platforms • Initiated expansion of
Launch pad manufacturing facility with
countdown doubling of available floor
system C-Band Tracking Radar
area
Fixed Wing Cockpit Displays
• Building of capacity to handle
large and heavy equipment
Designed and developed
and integration of large
complete Radar Capability
• Data Patterns has a long history radars and mobile EW
Developed Glass Cockpit of association with India Space systems, satellite integration
Displays / Avionics Organization. Data Patterns built facility
2001 a Nano Satellite which was
• Developed a Fire • Upgradation of Tracking deployed in 2017.
Control System Brahmos for • Radars Developed RF and • Developed Satellite and Ground Station EW receivers,
• Designed & Microwave capabilities
allow entry to building
developed the
complete systems
launch pad Expanding capacity
countdown system
Wideband Fast Real Time
Scan receiver Monitoring Receiver
Exciter
Fire control Coastal V/UHF V/UHF Search Precision
RF & Microwave
system for the Products Surveillance Radar Monitoring Receiver Approach Radar
BrahMos (Dept. of Space) Receiver
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24

Q3 and 9MFY23 Earnings Presentation

A De-Risked Business Model

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1 Developmental Contracts
DRDO Defence PSU
Projects leads to Production / Repeat requirements
Programs leads to Annuity requirements
5 Exports / Offsets 2 MoD Tenders
Radars, Electronic Warfare, Fire
Available Available Products / Requirements is
control systems, Avionics,
Products / Systems for large
Missile Seekers,
Systems Partnership with numbers and
Communications, Small satellites 01
OEM longer timeframe
05 02
4
Civilian Requirements 3
Indian Defence Eco-system
04 03
•
Ability to build nano satellites •
Develop Sensors,
Satellites and
• Platform /
Wind profile radar similar to the
Electronics, Avionics
Wind profile
Weapon System
radar developed by our company ⚫ In-house
radars
Development
is now required by government ⚫ In partnership
meteorological department in with OEM
the civilian space
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25

Q3 and 9MFY23 Earnings Presentation

Well-Positioned to benefit from Make in India Opportunity

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Focused on designing & developing indigenized products making it a beneficiary of India’s “AtmaNirbhar” defence structural reforms
Defence Modernization Program
Focused on designing and building own products across the manufacturing value
chain to developing products and sub-systems
Arudhra Radar
Well positioned to rapidly commercialise or scale-up a number of existing products or
building blocks to end systems or complete solutions
Concentrate on building complete systems from the building blocks and sub-systems
Light weight EW requirements
already developed, provides a higher value addition while distributing development
costs
Examples:
Using the experience of working with DRDO Ashwini LLTR
Wind profile radar built and development of wind profile radar, the
for Cochin University of company successfully bid and won a
Science and Technology contract of Rs 380Cr from Ministry of
is the world’s first 205MHz Defence for nine precision approach
radar – complete in house radars for Navy and Airforce which are Airborne surveillance radar
development currently at delivery stage
Developed and deployed Subsequently received contracts to build 2
our first Nano Satellite in more Nano Satellites Dharashakti programme
2017
Developed and supplied Subsequently redeployed for other projects
Military COTS type by various DRDO laboratories including in Radar Warning Receivers
processor for DRDO naval applications in ships & helicopters
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26

Q3 and 9MFY23 Earnings Presentation

Driven by Innovation Focused Business Model

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~~`~~

Focused on in-house development led by innovation and design and development efforts

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Building complete systems from the building blocks and sub-systems already developed

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Partner with customers through the life cycle of a product , from conception till deployment and thereafter

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450+ engineers , most of whom have served in design and development departments

Track record of utilizing pre-developed building blocks and sub-systems in the development of complete systems

Present programmes with building blocks Designed & Developed by Data Patterns…

… along with “Future Ready” products already designed and developed by the company

Key Products manufactured and delivered by Data Patterns

• ➢ Military grade processor ➢ Airborne phased array radar modules, ➢ Frequency hopping radio

• ➢ Cockpit displays, relays

• ➢ Actuator controllers for ➢ Next generation EW products

• missiles and torpedoes,

• ➢ Flight control computers, ➢ Integrated EW solution for national security

• ➢ Digital receivers and ➢ Up/Down converters for radars

	Key Products manufactured and delivered by Data Patterns
Q3 and	S.No Product(s) Details
	1. Monopulse RF Seeker Deliveredprototypes to DRDO
	2. X-Band Doppler Weather Radar Prototype installed in Chennai for meteorology department
	3. 205MHz Wind Profile Radar for CUSAT Installed at Cochin for a government owned university
	4. Radar for Naval Utility Helicopter Prototype delivered to LRDE
	5. A Next-Generation Software Defined Radio for fighter aircrafts Prototype developed for DEAL
	Seeker model 6. A Next-Generation Radar Warning Receiver for fighter aircrafts Prototype developed for DLRL
	7. A Next-Generation COMINT Prototype developed for DLRL
	8. Precision Approach Radar Delivered to AF
	9. Nano Satellite Being delivered to industry
	10. Power PC Card 190 nos delivered to HAL
	24 11. WBLRU Delivered to DRDO
	~~MFY23 Earnings Presentation~~ ~~27~~

Servicing Marquee Clients

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Marqee customers in the Indian defence & aerospace ecosystem

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Government Departments
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Indian DPSU Others
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Ministry of
Defence
Indian
government space
organisation
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History of business continuity & reliable product service for marquee customers

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History of reliable product service for several customers

Supplying products to Indian govt. space org. for 20+ years; which continue to be under AMC Products supplied to BrahMos operational from 2006

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Invest in product development ensuring continuity of business

Developed cockpit displays for LUH, which has potential to generate additional annuity revenues from the new units

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Products form critical components

Launch systems for ground based BrahMos missile launcher, “take me home” displays for the Tejas

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Supply of products to prestigious defence projects in India

Like LCA, the HAL Dhruv, LUH and the BrahMos missile programme

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Q3 and 9MFY23 Earnings Presentation

Led by a Highly Reputed and an Experienced Management Team

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Mr. Srinivasagopalan Rangarajan

Promoter, Chairman & Managing Director

• Over 3 decades of experience in business development, corporate affairs, finance and marketing

• B.Tech in Chemical Engineering from University of Madras, M.S from IIT, Madras

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Ms. Rekha Murthy Rangarajan

Promoter, Whole Time Director

• Over 2 decades of experience in administration, facility maintenance, HRD, process engineering and special projects

• B.A from Bangalore University, M.A in applied Psychology from Madras University

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Mr. Vijay Ananth K

Whole Time Director, COO and Chief Information Security Officer

• Over 2 decades of experience in software engineering and product management

• BCS from Manomanian Sundaranar University and Masters degree in computer applications from the University of Madras

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Mr. Venkata Subramanian Venkatachalam

Chief Financial Officer

• Over 2 decades of experience in finance sector

• B.Com from Madurai Kamaraj University, Member of ICAI

• Associated with Data Patterns – 20+ years

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Mr. Desinguraja Parthasarathy Chief Technology Officer

• 32 years experience in product development

• B.E from University of Madras

Associated with Data Patterns – 30+ years

• Associated with Data Patterns – 20+ years

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Mr. Thomas Mathuram Susikaran SVP – Business Development

• 21 years of experience in Business Development and marketing

• B.E from Madurai Kamaraj University and a Masters’ degree of tech in electrical engineering, IIT – Madras

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Ms. Manvi Bhasin

Company Secretary and Compliance Officer

• 3 years of experience in legal and

  • secretarial matters

• PGDM from Lal Bahadur Shastri Institute,, Associate of the ICSI

• Joined Data Patterns in 2021

• Associated with Data Patterns – 20+ years

29

Q3 and 9MFY23 Earnings Presentation

Well Rounded and Diverse Board

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Mr. Prasad Raghava Menon Non-executive, Independent Director

• Served as Managing Director of Tata Chemicals Ltd and Ex-Tata Power Company Ltd.

• Bachelor’s degree from IIT, Kharagpur

Mr. Vadlamani Venkata Rama Sastry

Non-executive, Independent Director

• Retired Chairman and M.D of Bharat Electronics Limited and ex-Executive Director of Centre for Development of Telematics

• B.Sc and B.E in electronics and communication from Andhra University

Mr. Sowmyan Ramakrishnan

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Non-executive, Independent Director

• Ex-Executive Director and CFO of Tata Power.

• Bachelor’s degree in technology (mechanical engineering) from IIT-M and a PG Diploma in Business Administration from IIM-A and M.A from Department of Oriental Studies and Research

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Mr. Mathew Cyriac Nominee Director

• 23 years of experience in investment banking and private equity.

• Previously associated with Blackstone Advisors, Bank of America, DLJ Merchant Banking Partners and Credit Suisse

• Bachelor’s degree in technology (mechanical engineering) from Anna University and Post graduate diploma in management from IIM-B (gold medalist)

30

Q3 and 9MFY23 Earnings Presentation

Appendix

Q3 and 9MFY23 Earnings Presentation

Historical Statement of Profit and Loss

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~~`~~

Particulars (Rs. Mn)	FY20	FY21	FY22
Revenue from Contract with Customers	1560.98	2239.50	3108.55
Other Income	40.94	26.00	39.70
Total Revenue	1601.92	2265.50	3148.11
Expenses:
a)Cost of materials consumed	532.13	629.78	915.90
b)Changes in inventories of FG,WIP and SIT	28.76	74.25	-55.20
c)Employee benefits expenses	422.71	484.21	623.50
d)Finance cost	133.43	145.02	109.90
e)Depreciation/Amortization	54.78	55.52	66.30
f)Other expenses	145.82	131.38	213.90
Total Expenses	1317.63	1520.16	1874.30
Profit before tax	284.29	745.34	1273.80
Tax expense	73.81	189.63	334.20
Profit(Loss)for theperiod	210.48	555.71	939.70
Other Comprehensive Income	(0.37)	(9.56)	-(11.50)
Total Comprehensive Income for theyear	210.11	546.15	928.2
PAT%	13.14%	24.53%	30.20%
EBITDA	432.50	919.40	1409.90
EBITDA margin%	27.7%	41.10%	45.36%
Return on Net Worth	14.71%	30.70%	24.01%
Total Debt	605.66	332.21	67.70
Debt to Equity	0.39	0.16	0.01

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Q3 and 9MFY23 Earnings Presentation

Historical Balance Sheet

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Particulars(Rs. Mn)	Mar20	Mar21	Mar22	Sep22		Particulars (Rs. Mn)	Mar20	Mar21	Mar22	Sep22
ASSETS						EQUITY AND LIABILITIES
						Equity
Non-current assets
						(a) Share capital	17.00	17.00	103.80	103.80
(a) Property, Plant and Equipment	278.21	292.08	441.60	476.10
						(b) Other Equity	1,517.95	2,060.70	5641.30	5811.70
						Total equity and liabilities	1,534.95	2,077.70	5745.10	5915.50
(b) Capital Work in Progress	-	-	173.00	247.70
						Liabilities
						Non-current liabilities
(c)Intangible Assets	1.59	5.60	13.50	17.40
						(a) Financial Liabilities
(d)Right of Use Assets	53.68	34.40	19.70	192.00
						(i) Borrowings	5.53	97.70	7.300	5.00
(e)Other Financial Assets	464.75	340.71	1220.40	1091.50		(ii) Lease Liabilities	38.46	24.35	11.10	8.50
						(b) Provisions	56.38	85.15	111.60	119.00
Total non-current assets	798.23	672.80	1868.20	2068.20
						(c) Deferred Tax Liability (Net)	7.60	8.13	-	-
Current assets						(d) Other Non Current liabilities	143.24	273.68	157.00	88.20
						Total non-current liabilities	251.21	489.01	287.00	220.70
(a)Inventories	794.14	737.45	1197.70	1777.90
						Current liabilities
(b)Financial Assets
						(a) Financial Liabilities
(i) Trade receivables	1,156.34	1,559.35	1983.10	2496.50		(i) Borrowings	600.13	234.51	60.40	114.40
						(ii) Trade payables	172.58	119.95	381.50	541.80
(ii) Cash and cash equivalents	15.11	88.06	1770.80	684.90		(iii) Other Financial Liabilities	79.15	40.05	220.70	125.50
						(iv) Lease Liabilities	20.83	15.15	13.20	12.80
(iii) Other Financial Assets	37.24	50.96	90.00	672.80
						(b) Other current liabilities	224.7	246.41	226.80	313.10
(c)Other current assets	152.57	177.34	158.30	138.50		(c) Provisions	14.85	9.59	7.20	7.60
						(d) Current tax Liabilities	55.23	51.34	126.10	7.40
Total current assets	2,155.40	2,613.16	5199.80	5190.60
						Total current liabilities	1,167.47	717.00	1035.90	1122.60
						TOTAL EQUITY AND LIABILITIES	2,953.63	3,283.71	7068.00	7258.80
TOTAL ASSETS	2,953.63	3,283.71	7068.00	7258.80

33

Q3 and 9MFY23 Earnings Presentation

Historical Cash Flow

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	Particulars (Rs. Mn)	Mar20	Mar21	Mar22		Sep22
	Net Profit before tax	284.29	745.34	1273.80		480.80
	Adjustments for :
	Add : Depreciation	54.78	55.52	66.30		41.10
	Add : Interest And Finance Charges	133.43	145.02	109.90		27.70
	Less: Profit on sale of assets	(1.78)	(1.24)	-
	Less: Interest Income	(25.64)	(22.21)	(39.70)		(35.00)
	Less: Gain/ loss on disposal of Right of Use of Asset	-	-
	Operating Profit Before Working Capital Changes	445.08	922.43	1410.40		514.600
	Adjustments For Working Capital Movements :	(264.29)	(189.58)	(1461.30)		(994.80)
	Cash Generated From Operations	180.79	732.84	(50.90)		(480.2)
	Direct Taxes (Paid) /adjusted	(28.41)	(189.79)	(282.30)		(240.40)
	Net Cash flow From Operating Activities (A)	152.38	543.05	(333.20)		(720.80)
	Cash Flow From Investing Activities (B)	14.10	(27.40)	(342.20)		(612.20)
	Cash Flow From Financing Activities (C)	(154.47)	(442.71)	2358.50		(332.90)
	Net Increase in Cash & Cash Equivalents (A+B+C)	11.99	72.95	1682.80		(1665.9)
	Cash & Cash Equivalent At The Beginning Of The Year	3.12	15.11	88.00		1770.80
	Cash & Cash Equivalent At The End Of The Year	15.11	88.06	1770.80		104.90

34

Q3 and 9MFY23 Earnings Presentation

Defence modernization programmes

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~~`~~

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Arudhra Radar

• Expected to supply ~55 units of AGRU/ Arudhra radar

• • Likely to generate revenues in the next 3-4 years based on the requirement projection of IAF

Ashwini LLTR

• Partner in development of these radars as a single vendor incl. TR modules, AGRU, signal processor, etc

• Expected to realise revenue between $10-30 million in the next few years.

Dharashakti programme

• Has received single vendor orders from DLRL for development and supply of all of the COMINT search receivers, Direction Finder & Monitoring receivers.

• In a position to be an OEM for the entire receiver systems with likely revenues of $ 50 million on complete execution

MI 17 Upgrades, Dornier Upgrades, Aerostat upgrades,

• Expertise gained in the Dharashakti project would also position to cater for airborne COMINT and ELINT equipment for various upgrades of any new rotary wing programmes

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Light weight EW requirements

• EW capability will help in supplying products for Light weight EW products which have a heavy requirement in mountainous borders as they are not adequately covered, and the same has been prioritised due to the increased geo-political tension

Airborne surveillance radar

• Has delivered an airborne surveillance radar (all of the hardware) to LRDE which is expected to be flight tested in the next few months and will be likely inducted in Navy’s Dornier upgrade and new helicopter programmes

Radar Warning Receivers

• Also a part of the Radar Warning Receivers for the Airborne Early Warning System (“AEW &C”) to DLRL which has been fitted on the Embraer early warning radar developed by Centre for Air Borne System (“CABS”)

Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms

• Likely to deliver Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms subject to flight testing.

• After flight testing, these can be fitted on the 83 LCA MK IA on order as well as the Sukhoi 30 upgrades (approximately 270 numbers), attack helicopters, etc.

35

Q3 and 9MFY23 Earnings Presentation

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Core groups or departments for design and development of roducts p

||~~~~<br>|~~~~
|~~~~<br>|~~~~
|~~`~~
|
|---|---|---|---|---|---|
|||||||
||Group/Department
Responsibility / Scope
Hardware Development
Department
Design and development of all types of high-end and complex electronics
modules and building blocks. Includes Single board computers, Field
Interface modules, Communication Modules, Custom I/O Modules,
Mezzanine modules,Signal conditioningmodules etc.
Software Development
Department
Design and development all types of embedded, real-time and application
software. Includes devices drivers, Operating system porting, real-time data
transfer, GUI application for various Operating systems and hardware.
Mechanical Engineering
Department
Design and development of all types of mechanical packaging, big structure
systems and jigs and fixtures. Incudes standard ATR chassis, heat spreaders,
structural and thermal analysis etc.
CAD / CAM Group
PCB schematics, Artwork, signal analysis, power analysis, electrical wiring, all
modules/systems performance, and maintenance statistics like MTBF etc.
Includes up to 26 Layer PCB design, hybrid electrical interface design etc
Algorithm Development
Group
Design and development of various domain algorithms for RADAR,
Electronic Warfare, Communication waveform etc. Uses all types of
algorithm development including mathematical modelling, statistical
modelling, feedback modelling etc.
Radio Frequency Modules
Group
Design and development of all types of RF modules and sub-systems.
Includes simple RF receiver/exciter, filters, upconverters/downconverters,
synthesizers etc.
Total Employee
Strength
Department
Design & Engineering (D&E)
Manufacturing
Support
Marketing & Customer support
Total|||||
||Group/Department|Responsibility / Scope|Group/Department|Responsibility / Scope||
||Hardware Development
Department|Design and development of all types of high-end and complex electronics
modules and building blocks. Includes Single board computers, Field
Interface modules, Communication Modules, Custom I/O Modules,
Mezzanine modules,Signal conditioningmodules etc.|DOMAIN Systems Groups|Design and Development of product verticals as a system.
Including RADAR, EW, Communication, ATEs, Fire-control
systems,Satellite,Avionics etc.||
||||Production Department|All the products are functionally and environmentally tested by
this department. Includes testing of modules and sub-
systems, wiring, mechanical assembly, and integration etc.||
||Software Development
Department|Design and development all types of embedded, real-time and application
software. Includes devices drivers, Operating system porting, real-time data
transfer, GUI application for various Operating systems and hardware.||||
||||Electronics Manufacturing
Services (EMS)|Fabrication of all electronics modules. Including automated pick-
n-place, manual soldering, conformal coating etc.||
||Mechanical Engineering
Department|Design and development of all types of mechanical packaging, big structure
systems and jigs and fixtures. Incudes standard ATR chassis, heat spreaders,
structural and thermal analysis etc.||||
||||Harnessing Group|Fabrication of all types of cable harness including internal wiring,
external interface wiring, testing of cables for continuity, impedance
etc.||
||CAD / CAM Group|PCB schematics, Artwork, signal analysis, power analysis, electrical wiring, all
modules/systems performance, and maintenance statistics like MTBF etc.
Includes up to 26 Layer PCB design, hybrid electrical interface design etc||||
||||Mechanical Integration
Group|Assembly and integration of all types of mechanical parts. Including
various types like LRU assembly, board assembly, system
assembly, system integration etc.||
||Algorithm Development
Group|Design and development of various domain algorithms for RADAR,
Electronic Warfare, Communication waveform etc. Uses all types of
algorithm development including mathematical modelling, statistical
modelling, feedback modelling etc.||||
||||Project Management
Group|Responsible for Delivering all the orders both internal and external.
Vertical integration of groups and product development
responsibilities. Includes all types of projects from simple module
delivery to full system delivery.
Utilizes, project plan, metrics, GANNT charts, budgeting and
control, optimal execution methods etc||
||Radio Frequency Modules
Group|Design and development of all types of RF modules and sub-systems.
Includes simple RF receiver/exciter, filters, upconverters/downconverters,
synthesizers etc.||||

36

Q3 and 9MFY23 Earnings Presentation

Indian defence and aerospace industry is rapidly evolving into a self sustaining one

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Competition at two levels for Data Patterns

Indian defence suppliers – Anticipated Future Positioning

We are poised to take up emerging opportunities

During development stage in DRDO requirements from small and medium size companies building custom solutions and/or integrating solutions around imported COTS products

From large corporates offering complete systems, often under a partnership with International OEMs, for products and programmes directly procured by the Indian government space organization

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Platform/ Solution Sub-system (end to
Focused end)/ Integration
Tonbo Imaging focused
L&T
HAL
Mahindra Defence
Godrej and Boyce
OFB
Reliance Defence
BEL
BDL
5 Tata Advanced Systems
Kalyani Strategic
Systems Ltd
Data
Adani Aerospace
Patterns
Paras Defence
Alpha Design Technologies
Astra Microwave Centum Electronics
Mistral CoreEL Technologies
----- End of picture text -----

Our products are developed to compete with international and domestic equivalents . Further, we offer end to end solutions to the customer

Ability to offer wide range of products . We also have strong and balanced capabilities across 12 defence and aerospace segments

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Subcomponents focused
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37

Q3 and 9MFY23 Earnings Presentation

~~`~~

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Thank You

For further information, please get in touch with:

Monali Jain monali@GoIndiaadvisors.com M:+91 7597304020

Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 9769364166

Q3 and 9MFY23 Earnings Presentation