Finolex Cables Ltd. — Interim / Quarterly Report 2021

Aug 20, 2020

FCL:SEC:SE:20:145 20th August, 2020

Corporate Relationship Department BSE Limited 1st Floor, New Trading Ring Rotunda Building, P J Towers Dalai Street, Fort Mumbai — 400 001

Ref: Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Regulations"),

Dear Sirs,

Sub: Conference Call organized for 20th August, 2020

We refer to our earlier letter Ref. No. FCL:SEC:SE:20:144 dated 19th August, 2020 regarding intimation of Conference Call to be held at 11.30 a.m. on Thursday, 20th August, 2020 and enclose a copy of presentation to be made by the Company. The Company will be represented by Mr D K Chhabria, Executive Chairman and Mr Mahesh Viswanathan, Chief Financial Officer of the Company during the said Conference Call.

This is for your kind information and updation on the website of the Exchange.

Thanking you,

Yours faithfully For FINOLEX CABLES LIMITED

R G D'SILVA Company Secretary & President (Legal)

Encl.: As stated above.

Finolex Cables Limited Earnings Presentation June ,2020

Disclaimer Finolex

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This presentation and the accompanying slides (the "Presentation"), which have been prepared by Finolex Cables 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 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.

Impact of COVID 19

• The Company's operations and financial results for the quarter have been adversely impacted by the lockdown imposed to contain the spread of COVID-19. The operations gradually resumed in line with the directives of the Government. This was done with requisite precautions ensuring safety of employees. However, despite resumption of operation, there were disruptions due to limited availability of work force, containment zones and curfew restrictions coming up from time to time. The results for the quarter are therefore not comparable with those for the previous periods.
• The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of its assets. In developing the assumptions relating to the possible future uncertainties in the economic conditions because of this pandemic, the Company, as at the date of approval of these financial results has used internal and external sources of information. The Company has performed sensitivity analysis on the assumptions used and based on current estimates expects to recover the carrying amounts of these assets. The Company will continue to closely monitor any material changes to future economic conditions.

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TABLE OF CONTENT		Finolexts paapl. together
Executive Summary	5
Company Overview	7
Category & Product Portfolio	10
Key Management	14
Timeline	15
Geographical Footprint	17
Financial Overview	19

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EXECUTIVE SUMMARY

One of India's leading Electricals brand - a market leader in India's Wires & Cables (W&C) industry and fast growing player in the FMEG category

Diversified product portfolio

• Wires and cables: Light duty cables, power and control cables and communication cables.
• FMEG: Electric switches, switchgears, LED Lightings, Fans, water heaters.
• Leveraging the brand equity of Finolex, extended our brand offerings to home appliances

Multi location manufacturing

• 5 manufacturing plants
• 28 depots
• JV with Sumitomo, Japan for EHV cables
• Marketing JV with Corning for Optic Fibre technology
• Technical collaboration with NSW, Germany for manufacture of cables for submersible pump industry.

Widespread distribution network • 380 distributors • 4000+ dealers

• 40000+ retailers
• Launched our own e-retail site

	Q1- FY 20-21 KO
Revenue	399.60I
EBITDA	57.02I
PAT	34.98
EPS	Rs. 2.29

Premium Player Cables and Wires Industry Finolex

Electrical Cables and Wires • Leader in the electrical housing wires segment and commands a premium over its peers • Strong brand positioning and superior product quality enabled the company to achieve higher margins • This segment accounts for 87.5% of the company's revenues and offers a wide range of products in each of the segments

• Reported 87.5% in electrical W&C segment.

Rs. In Crore Q1 20-21 W01 19-20 1.77 6.54 16.382434 Electrical cables Communication Copper rods Others cables

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Emerging Player - FMEG Finolex

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• Finolex entered the FMEG segment to capitalize on the strong brand recall and sales network

• The company first entered the electrical switches and lighting segment, leveraging its widespread distribution network in the country. The company than introduced switchgears, fans and water heaters •
• New products within FMEG sector grew by more than 24% y-o-y each in F Y 20-21 Vs F Y 19-20
• 1. These products have been well accepted, along with that the distributors have expanded and continued presence in visual media have contributed to the Finolex brand recognition.
• For these products the company has setup a different channel.

WIRES & CABLES

Light Duty Cables

• FR PVC insulated industrial cables
• Flexible cables
• Solar cables
• Elevator cables
• 3CF & WW cables for agricultural sector
• Auto & Battery cables for automobile sector

Power & Control Cables

• LT & HT Power and Control cables

• Communication Cables

• Co-axial cables

• Speaker cables

• CCTV cables

• Jelly Filled Telephone Cables (JFTC) • LAN cables FANS

• Telephone cables Ceiling fans

• Optic Fibre cables Table fans

LIGHTING

• CFL range
• T5 & T8 tubes
• Ballast Fittings
• Luminaries

• LED products

ELECTRICAL SWITCHES

• Switch range
• Mounting boxes

SWITCHG EAR

• MCB
• RCCB
• DB

• Wall fans
• Pedestal fans
• Exhaust fans

WATER HEATERS

• Instant
• Storage

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1 Group1	Product Covered
• Electrical Cables	mo, • 1100 V PVC Insulated Cables	Electrification of industrial establishments, used byconstruction industry, electrical panel wiring and
	• Motor winding PVC insulated	consumer electrical goods
		[7> Submersible pumps and electrical motors
	• Automotive/battery cables	Wiring harness for automobile industry andbattery cables for various applications
	• UPS cables
		For providing power from the UPS to thecomputer / appliances in the networking
	• Heavy duty, underground, low	environment
	voltage and control cables	Connection to the user point from mainsupply of power
	• Heavy duty, underground, highvoltage, power cable	Intra-city power distribution network
	• Elevator cables	For use by Elevator industry
	• Solar Cables	Specially insulated cables for use in solar parks
		11

	Product Covered	Applications
• Copper Rods ElectricalSwitches Lamps	• CCC rods of 8 mm diameter	Raw material for manufacturing copperbased Cables
	•Premium and classic switches,sockets, regulators, etc	For power supply to equipment in domestic,commercial and industrial environment
	•Retrofit/non-retrofit CFL lampsand T5 Tube Lights andFittings, LED based lightingsolutions	Lighting for homes, hotels, shops, offices and, factoriesLi(bothindoorandoutdoorapplications). Also available for street lightapplications
• Electrical Fans	•Ceiling Fans, Portable Fans,Exhaust Fans	For use in domestic, commercial and industrialenvironment
	•Miniature Circuit Breakers(MCB), Residual Current CircuitBreakers (RCCB), MouldedCurrent Circuit Breakers (MCCB)	For use in voltage surge protection and safetyapplications in domestic and commercialenvironment
• Water Heaters	and Distribution Boxes• Instant and Storage WaterHeaters	For use in domestic and commercialenvironment12

	Product Covered	Applications
• Communication Cables	• Jelly filled telephone cables(JFTCs)	Telephone line connections to exchanges and users
	•Local area network (LAN)cables	Indoor and outdoor networking, voice and datatransmission, broadband usage
	• PE insulated telephonecables	[4'>. Telephone instrument connections to EPABX
	•Coaxial cables	Cable TV network solutions, microwave communications,mobile towers
	• Speaker cables	Broadcasting applications in buildings and electronicgoods
	•Optic Fibre	Principal raw material for Optic Fibre cables
	•Optic Fibre cables	Networks requiring high speed transfer of largebandwidth for voice image and data transmission
	• V-SAT cables	For connecting V-SAT dish to base station
	•CCTV cables	N For better quality of CCTV images

Key Management Team Finolex

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Mr. Deepak Chhabria

He joined Finolex Cables Ltd as Deputy Production Manager in 1986. Deepak was actively involved in setting up 9 different manufacturing Plant across 4 locations in India. Under his able guidance, the Company now produces a 1 variety of electrical and communication cable products, copper rods, electrical switches, Compact Fluorescent lamps and PVC Sheets. Mr. Chhabria is also the Chairman of Finolex 1-Power Systems Pvt. Ltd. A Project has been I , set up in a Joint Venture with 1-Power Systems, Japan to produce power cables up to 500 KV, the only Indian $ Company to have this capability. 1-Power Systems is a 100% subsidiary of Sumitomo Electricals of Japan. Mr. Chhabria has also served as the Chairman of CII-Pune Chapter in 2008. S.S.0 — Loyola High School, Pune A-Levels — Seven Oaks School, Kent, England Bachelors in Engineering Management — University of Evansville, Indiana, USA.

Mr. Mahesh Viswanathan

He joined Finolex Cables Ltd in October 2008. A Chartered Accountant by profession, he has many years of experience in the industry and in various aspects such as Management, Taxation and Finance. He has worked with several Multinational companies.

Timeline Finolex gets people together Launched Fans & Water Heaters Switchgear Plant Uttarakhand ',zr A-4 0 V. 2016 we 0 up 0 eN1 Electrical SwFinolexJ Power Systems, JV with Sumitomo of Japan, Extra High Voltage Power Cables Plant, Shirwal, Jelly Filled Telephone Cables Plant, Verna, Goa Optical Fibre Cable Plant, Verna, Goa Lighting Products Plant, Urse, Maharashtra Electrical Switch Plant, Uttarakhand 5.5 MW Solar plant, Urse Super brand Recognition Light Duty Cables Manufacturing of Glass Fibre, Switches Plant, Urse, Light Duty Cables Plant, I tr) r°4

Roorkee, Uttarakhand

Plant, Verna, Goa

Urse. (Backward Integration) i Goa

Maharashtra.

Corning Finolex, JV Optical Fibre Plant, Pune,

Maharashtra 16!

GEOGRAPHICAL FOOTPRINT

Geographical Footprint

Uttarakhand	Electric wire for construction; wires for automobile; switches;switchgear and Agricultural applications
Shirwal, Maharashtra	Extra High Voltage (EHV) cables (JV with Sumitomo, Japan)
Urse, Maharashtra	All electrical cables, optic fibre cables and all communicationcables
Pune — Pimpri	Minimal manufacturing, telephone cables; winding wire forpump-set industry
Verna Goa	All electrical products except power cables, communicationcables except Ian cables
Ponda Goa	Copper Rods
	Note: Capacity utilization levels at all manufacturing facilities around 65% during 2019-20

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FINANCIAL OVERVIEW

FY 2019-20

• Revenue

• Total Revenue registered a y-o-y decline of 53.31% to Rs 399.60 Cr.
• Electrical Cable Revenue decreased in 01 of FY 2020-21 as compared to Q1 of FY 2019-20 from Rs 666.28 to Rs 331.69 Cr.
• Communication Cable Revenue decreased in Q1 of FY 2020-21 as compared to 01 of FY 2019-20 from Rs 110.58 to Rs 27.28Cr
• Profit Margin
• Electrical Cable EBIT decreased in 01 of FY 2020-21 as compared to Q1 of FY 2019-20 from Rs 111.16 to Rs 26.07 Cr.
• Communication Cable EBIT decreased in Q1 of FY 2020-21 as compared to 01 of FY 2019-20 from Rs 9.37 to Rs (0.10) Cr.
• Profit after tax for the year stood at Rs 34.98 Cr
• Inter segment Revenue
• Inter segment revenue pertaining mainly to copper rods' consumption stood at Rs. 56.14 Cr.

20

• Company business was impacted by lockdown on account of COVID-19 with significant decline in sales. In June-20 gradual relaxations in lockdown witnessed in all regions however overall normalcy is yet to return.

Quarterly Segment Revenue

**19**212020-21

STANDALONE FINANCIAL HIGHLIGHTS Q1-FY20-21 ( IND-AS) F nolex

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INCOME STATEMENT (1NR Cr)	Q1-FY21	Q4-FY20		Ql-FY20	Q-o-Q	LIGHTING PRODUCT
ota ncome	399.60	710.13	(43.7)%	829.71	(51.8)%
Total Expenses	342.58	564.33	(39.3)%	701.74	(51.2)%
EBITDA	57.02	145.80	(60.9)%	127.97
EBITDA Margins (%)	14.27%	20.53%	(626)Bps	15.42%	(55.4)%
Depreciation	10.02	9.57	4.70%	9.90	(115)Bps
EBIT	47.00	136.23	(65.5)%	118.07	1.2%
EBIT Margins (%	11.76%	19.18%	(742)Bps	14.23%	(60.2)%
Finance Cost	0.17	0.73	(76.7)%		(247)Bps
Profit Before Tax	46.83	135.50	(65.4)%	0.22117.85	0%
Tax	11.85	18.34	(35.4)%	36.28	(60.3)%
•Profit After Tax	34.98	117.16	(70.1)%		(67.3)%
PAT Margins (%)	8.75%	16.50%	(775)Bps	81.57	(57.1) %	NEW LiS
Other Comprehensive Income/ (Expenses)	7.89	(32.69)		9.83%	(108)Bps	at.51 RAC
Total Comprehensive Income	42.87	84.47	(49.2)%	(14.39)
EPS Basic (INR)				67.18	(36.2)%

*Includes other income

Tab( L'Cdi

Q1-FY20 -21KEY FINANCIAL HIGHLIGHTS Finolex

(Standalone Q1 FY 2020-21 Vs Q1 FY 2019-20 Performance) (INR Cr)

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FAN

*Includes other income

CONSOLIDATED FINANCIAL HIGHLIGHTS Q1 FY 20-21 ( IND-AS)

INCOME STATEMENT (INR Cr)	Q1-FY21	Q4-FY20	$(0 - 0.0)$	Q1-FY20	$Q-O-Q$
Total Income*	399.60	669.93	$(40.3)%$	829.71	$(51.8)%$
Total Expenses	342.58	570.91	$(40.0)%$	701.74	$(51.2)%$
EBITDA	57.02	99.02	$(42.4)%$	127,97	(55.4)%
EBITDA Margins(%)	14.27%	14.78%	$(51)$ Bps	15.42%	115Bps
Depreciation	10.02	9.57	4.70%	9.90	1.21%
EBIT	47.00	89.45	(47.4)%	118.07	(60.2)%
EBIT Margins (%)	11.76%	13.35%	$(159)$ Bps	14.23%	$(173)$ Bps
Finance Cost	0.17	0.73	$(76.7)%$	0.22	$(22.7)%$
Share of net Profit of an Associate & JV	14.08	8.19	71.9%	20.15	$(30.1)%$
Profit Before Tax	60.91	96.91	$(37.1)%$	138.00	(55.9)%
Tax	16.42	32.42	$(49.4)%$	41.05	$(60.0)%$
Profit After Tax	44.49	64.49	$(31.0)%$	96.95	$(54.1)%$
PAT Margins (%)	11.13%	9.63%	150Bps	11.68	$(47)$ BPS
Other Comprehensive Income/ (Expenses)	7.68	(32.83)		(14.9)
Total Comprehensive Income	52.17	31.66	64.8%	82.05	$(36.4)%$
EPS Basic (INR)	2.91	4.22	$(31.0)%$	6.34	$(54.10)%$

*Includes other income

LEO TRACE L

Q1-FY20 -21KEY FINANCIAL HIGHLIGHTS Finolex

(Consolidated 01 FY 2020-21 Vs 01 FY 2019-20 Performance) (INR Cr)

*Includes other income

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Product Segment			UOM Qtr 2020-21 Qtr 2019-20
Electrical cables	Tons	9,273	16,452
Comm(Copper) cables	Tons	747	2,427
Comm(Optic Fiber) cables	FKM	77,392	522,884

Business performance Trend(Q-O-Q)

	Q1FY 20-21	Q4FY 19-20	Q3FY 19-20	Q2	Q1FY 19-20 FY 19-20
Revenue from Operation	377.12	651.44	702.36	715.76	807.74	823.08	749.56	713.97	7 t 8
EBITDA	57.02	145.80	119.51	149.11	127.97	150.26	128.93	144.26	149.88
EBITDA Margins (%)	14.27%	21%	16%	19%	15%	18%	17%	19%	18%
Depreciation	10.02	9.57	9.64	9.80	9.90	10.05	9.73	11.03	9.74
Other Income	22.48	58.69	26.52	64.71	21.97	23.97	19.34	58.42	20.10
Finance Cost	0.17	0.73	0.37	0.23	0.22	0.27	0.03	0.32	0.30
Profit before tax	46.83	135.50	108.90	139.08	117.85	139.94	119.17	132.91	139.84
PBT Margin	11.72%	19%	14%	18%	14%	17%	15%	17%	17%
Tax	11.85	18.34	28.27	15.96	36.28	55.04	43.23	40	49.50
Profit after Tax	34.98	117.16	80.63	123.12	81.57	84.90	75.94	92.91	90.34
PAT Margin	8.75%	16%	11%	16%	10%	10%	10%	12%	11%
EPS	2.29	7.66	5.27	8.05	5.33	5.55	4.97	6.07	5.91

Quarterly Profit & Loss- Standalone Financial Statement

Quarter —wise Result Summary

Particulars{Rs. 1n Crore)	2012-13						17-18 2018-19 2019-20
		2;558:30	2,633.30	1,676.50'"'		3,011.63''''	'3;199.62	3,049.19
EBIDTA	230.80	306.90	340.80	403.00	471.66	549.72	573.32	541.79
EBIDTA Margin	9%	12%	13%	15%	17%	18%	18%	18%
Profit Before Tax	170.80	244.00	263.10	336.30	419.34	504.48	531.86	501.33
PBT Margin	7%	10%	10%	13%	15%	17%	17%	16%
Profit After Tax	145.30	207.70	198.60	248.75	315.90	358.20	344.09	402.48
PAT Margin	6%	8%	8%	9%	11%	12%	11%	13%

Standalone Profit & Loss Account- Key Indicators

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				2015-16	2016-17	2017-18	2018-	2018-2O
Share Capital	30.59	30.59	30.59	30.59	30.59	30.59	30.59	30.59
Reserves	893.70	1,072.80	1,234.20	1,437.00	1,846.85	2,163.31	2,409.08	2,688.04
Net Worth	924.29	1,103.39	1,264.79	1,467.59	1,877.44	2,193.90	2,439.67	2,718.63
Loan Funds	180.60	147.00	126.70	51.20
Other Liability					6.58	7.52	9.80	18.18
Deferred Tax (Net)	34.50	29.50	30.00	23.00	18.93	34.93	58.34	36.06
Total Liabilities	1,139.39	1,279.89	1,421.49	1,541.79	1,902.95	2,236.35	2,507.81	2,772.87
Gross Block	977.70	1,072.80	1,096.00	1,107.40	1,148.48	1,186.70	1,226.38	1,238.56
Net Block	460.70	507.40	470.40	424.80	414.87	414.18	414.57	404.50
Investments	324.09	403.10	494.20	619.50	895.87	1,214.82	1,381.86	725.89
Net Current Assets	314.79	304.53	443.08	475.62	558.81	530.48	665.00	786.46
Cash & Cash Equivalent	39.81	64.86	13.81	21.87	32.4	76.87	46.38	856.02
Total Assets	1,139.39	1,279.89	1,421.49	1,541.79	1,902.95	2,236.35	2,507.81	2,772.87

Standalone Balance Sheet - Key Indicators