Indo Count Industries Ltd — Investor Presentation 2021

May 17, 2021

May 17, 2021

The National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 Company Symbol : ICIL BSE Limited Department of Corporate Services Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code No. : 521016

Subject: Investor Presentation Q4 & FY 2021

Please find enclosed herewith a copy of Investor Presentation on financial results for Q4 & FY 2021.

Kindly take the above on record.

Thanking you,

Yours faithfully,

For Indo Count Industries Limited

Amruta Avasare Company Secretary ACS No.: 18844

Encl.: A/a

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Indo Count Industries Ltd. (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.

This presentation contains certain forward-looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forwardlooking statements become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the Company.

Commenting on the results, Mr. Anil Kumar Jain - Executive Chairman said,

"It gives me immense pleasure to share that we have delivered growth despite challenging environment and lockdown restrictions.

Our growth during the year was propelled by higher demand for home textile products and consequent increase in our market share globally. Furthermore, our persistent focus on expanding our current capacity, growing our branded portfolio, enhancing our domestic presence, improving ecommerce and building and creating a sustainable value chain have helped us thrive and be future ready."

LARGEST EXPORTER OF BED LINEN FROM INDIA

HIGHEST MARKET SHARE OF BED LINEN IN USA

RECORD ANNUAL SALES VOLUME & REVENUE

WE HAVE DELIVERED RECORD GROWTH IN A CHALLENGING ENVIRONMENT

CAPABLE - ADAPTABLE - RELIABLE

Reliable

Growing to a reliable corporate house

Engagement with the customers and adoption of customer centricity approach Growing focus in the domestic market and increasing brand value through B2B/B2C/D2C Strong customer relationships and brand recall Expand offerings and benefit from Make in India initiative

Adaptable

Defining capabilities with a strong foundation

CAPEX for brownfield expansion to meet increased demand

Initiatives to remain future ready, focusing on e-commerce, digital marketing and developing health and hygiene products

Optimising China+1 strategy and be a preferred supplier for Fashion & Utility bedding globally

Handling COVID related challenges

Capable

Leveraging knowledge capital

Strong balance sheet and liquidity position

• State of the art manufacturing facility
• Widespread network with strong product positioning
• Experienced management

7

FACTORS THAT CONTRIBUTED TO RETAIL GROWTH

Adoption of omni-channel distribution

Multiple sales avenues and accelerated shift towards digital commerce

Consolidation of Big box retailers

Retailer consolidation due to their higher financial capabilities and their presence in selling essential products

Home - A center stage

Increased consumer spending due to work from home and social distancing measures

Increasing importance of Health, Hygiene & Wellness Products

Shift in demand towards value added categories of health, hygiene and wellness due to additional demand

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

NRF predicts that the retail sales will grow between 6.5% and 8.2% to more than \$4.33 trillion in 2021 as more individuals get vaccinated and the economy reopens

INDIA GAINING MARKET SHARE IN USA HOME TEXTILES MARKET

75 US imports of Cotton Bedspread

FACTORS PLAYING OUT FOR INDIAN HOME TEXTILE PLAYERS

FASHION, UTILITY AND INSTITUTIONAL SEGMENT – 3x OPPORTUNITY SIZE FOR INDIAN SUPPLIERS 4.0 10.0 Sheet Set Fashion/Utility & Institutional ✓ Target market of almost \$10 bn can be addressed in bn \$ RETAIL CONSOLIDATION IN DEVELOPED MARKETS Structural Shift Big box retailers performing well due to strong balance sheet and increased capacities Organized Manufacturers Organized manufacturers to benefit on the back of increased capabilities

• and capitalized
• ✓ Currently, China is a dominant player in fashion, utility & institutional category and India is still at an initial stage
• ✓ China + 1 strategy is helping to shift these product categories to India
• ✓ Indian Home Textile Industry stands to gain on this potential shift of these product categories

HOME HAS BECOME A CENTER STAGE

'Home' has become the centre stage of our life and life style

This has created additional demand for Home Textile products

Increased Efficiency

Consolidation to lead to Increased efficiency and productivity in manufacturing

SALES VOLUME PERFORMANCE

in million metres

13

NEW CAPACITY TO DRIVE NEXT LEG OF GROWTH

BROWNFIELD EXPANSION

• Expansion of its bed linen capacity by ~ 20% existing annual capacity of 90 Mn metres to 108 Mn metres by debottlenecking and balancing facilities
• Brownfield investment for adding commensurate cut & sew facilities and for enhancing the capacity for Top of the Bed (TOB) products. This will entail a capex of ~ Rs. 150 crores

MODERNIZATION OF SPINNING CAPACITY

• Modernization of spinning units with compact spinning technology
• This will entail a capex of ~ Rs. 50 crores. Post modernization, this capacity will also be used for captive consumption in the home textiles unit

REVENUE VISIBILITY

• These investments are expected to increase the revenue by ~Rs. 600 crores over the next 2 years, post commissioning.
• The total capex will be ~ Rs. 200 crores and will be funded by a mix of internal accruals and debt and is expected to be operational in H2FY22

Capacity utilization ramp-up to drive FCF generation and improved return ratios

CONSOLIDATED FY21: GROWING VOLUMES, REVENUES & PROFITABILITY

Strong track record and proven expertise to distribute healthy and sustainable returns

The Board has recommended a Final Dividend of Rs. 1.50 per equity share (i.e. 75%) of Rs. 2/- face value, subject to the approval of shareholders at ensuing Annual General Meeting

Particulars (Rs. Crs)	Q4FY21	Q4FY20	YOY%	FY21	FY20	YOY%
Revenue from Operations	691	401		2,519	2,080
Other operating Income	14	24		38	55
Total Income	705	425	66%	2,557	2,135	20%
Cost of Material	342	203		1,270	1,139
Employee Expenses	52	38		159	148
Other Expenses	205	148		714	609
Total Expenses	599	390		2,143	1,897
EBITDA	106	35	200%	415	238	74%
EBITDA Margin (%)	15.0%	8.3%	671 bps	16.2%	11.1%	507 bps
Depreciation	10	11		43	43
EBIT	95	24	293%	371	194	91%
EBIT Margin (%)	13.5%	5.7%	783 bps	14.5%	9.1%	542 bps
Finance Cost	11	8		28	39
PBT before Exceptional items	85	16	429%	343	155	121%
Exceptional Items	-	-		(4)	(98)
PBT	85	16		340	57
Tax	27	8		91	(16)
PAT	58	8	600%	249	73	241%
EPS	2.93	0.40		12.70	3.74

Figures are rounded off wherever required

Please note Q4FY20 figures are not comparable with Q4FY21 figures due to lockdown announced in Mar'20

As the rates under RoDTEP have not been notified till date, the income on account of benefits under the new scheme has not been recognized for the Quarter ended March 31, 2021

CONSOLIDATED BALANCE SHEET

ASSETS (Rs.Crs)	31-Mar-21	31-Mar-20
Non-Current Assets
Property, Plant & equipment	540	554
Capital Work in progress	8	6
Right of Use	18	18
Other Intangible Assets	3	3
Financial Assets
i) Loans	4	4
Other Non-Current Assets	8	6
Total Non-Current Assets	581	591
Current Assets
Inventories	718	524
Financial Assets
i) Investments	167	0
ii) Trade Receivables	516*	242
iii) Cash and Cash Equivalents	120	139
iv) Bank Balances	7	11
v)Loans	1	0
vi)Other Financial Assets	51	4
Current Tax Assets	9	23
Other Current Assets	126	161
Total Current Assets	1,715	1,105
Total Assets	2,296	1,696

EQUITY AND LIABILITIES (Rs.Crs)	31-Mar-21	31-Mar-20
Equity
Equity Share Capital	39	39
Other Equity	1,245	947
Non-Controlling Interest	6	7
Total Equity	1,290	993
Non-Current Liabilities
Financial Liabilities
i) Borrowings	19	36
ii) Other financial liabilities	2	6
Provisions	3	6
Deffered Tax Liabilities	80	57
Other Non-Current liabilities	8	8
Total Non-Current Liabilities	111	114
Current Liabilities
i)Borrowings	537	293
ii)Trade Payables	235	129
iii) Other financial liabilities	29	92
Other Current Liabilities	94	75
Total Current Liabilities	895	589
Total Equity and Liabilities	2,296	1,696

*Extension of delivery schedules on account of logistical challenges in February and March led to increase in debtors

Particulars (Rs. Crs)	FY21	FY20
Profit before Tax & Exceptional	343	155
Adjustment for Depreciation & other items	141	(82)
Operating profit before working capital changes	484	74
Changes in working capital	(425)	92
Cash generated from operations	59	166
Direct taxes paid (net of refund)	(75)	(26)
Net Cash from Operating Activities	(16)	140
Net Cash from Investing Activities	(189)	16
Net Cash from Financing Activities	185	(40)
Net Change in cash and cash equivalents	(20)	116
Cash and cash equivalents at the beginning of the year	139	23
Cash and cash equivalents at the end of the year	120	139

IMPROVING PERFORMANCE

ROE ROCE 10.8% 19.4% FY19 7.4% FY20* FY21 6.1%

NET DEBT/EBITDA

FY20 includes exceptional items of Rs. 98 Crs All figures on Consolidated Basis

COMPANY SNAPSHOT

ABOUT US

Domestic Business

Launch of B2C & D2C brands

Largest manufacturer and exporter of bed sheets, bed linen, quilts from India while being the top bed sheet supplier to the US

Comprehensive product portfolio in the premium segment that comprises of bed sheets, fashion bedding, utility bedding and institutional bedding

OUR GLOBAL REACH

Indo Count exports to more than 54 countries across 5 continents and going forward to widen its geographical footprint

The Maps provided are for pictorial representation only

EXPANDED MARKET OPPORTUNITY WITH FORAY INTO NEWER PRODUCTS

Bed Sheets

Flat Sheet Fitted Sheets Pillow-cases

Comforters & Duvets Shams & Decorative Pillows Quilts, Coverlets

Mattress Pads, Protectors, Pillows Down Alt Comforters

Fashion Bedding Utility Bedding Institutional Bedding

Basic white sheets Shams & Pillows Bed Skirts, Duvet covers

Contribution 85% Fashion, Utility and Institutional at 15% in FY21

FORAY IN B2C & D2C SEGMENT

GROWING OUR BRAND PORTFOLIO

ENHANCING DOMESTIC PRESENCE

CAMPAIGNS IN INDIAN MARKET INFLUENCER MARKETING

Branding through Influencers along with A list celebrities like Soha Ali Khan, Madhuri Dixit, Dia Mirza, Taapsee Pannu, Vidya Balan and 20+ others

TIE-UP WITH ONLINE PLATFORM

Partnership with Myntra for donations to migrant workers through Bosconet

Other strategic Tie-ups

• Creating Pan-India distribution network through Multi brand outlets (MBO's) & Large format stores (LFS)
• Present at Shoppers Stop & Home Centre

DOMESTIC COLLECTION LAUNCHES DURING THE QUARTER

THE UNTAMED COLLECTION THE GLOBE TROTTER COLLECTION

Untamed Collection taking inspiration from the wild

Globe Trotter collection giving great ideas to travel in the current times

SUSTAINABILITY IS IN OUR DNA

Project GAGAN:

A sustainable

The programme aims at improving awareness among the farmers to cultivate sustainable forms of cotton.

In step with this mindset, we launched an initiative called 'GAGAN' to help farmers to cultivate sustainable cotton through our Better Cotton Initiative (BCI).

cotton initiative

Associated with SAC (Sustainable Apparel Coalition) through HIGG index tool. Two of our facilities at Gokul and Kagal have been certified with the Sustainable Apparel Coalition.

HIGG INDEX

The Higg Index delivers a holistic overview that empowers us to make meaningful improvements that protect the wellbeing of our factory workers, local communities, and the environment.

A MADE IN GREEN product ID proves that the product has been tested for harmful substances.

MADE IN GREEN

This is a latest sustainability benchmarking being demanded by majority of customers and we are proud to commit that a large number of our products manufactured come under Made in Green category.

Indo Count has taken SMART goals for Green house gas emissions reduction in Gigaton project

In Walmart's Gigaton project, Indo Count has achieved a remarkable milestone and is recognized by Walmart Corporation as "Giga Guru" amongst Global Top 20 suppliers

EDUCATION

• We developed and adopted multifaceted approach through Elearning to increase attendance and stimulate learning amongst students
• Besides E-learning, various other initiatives include distribution of school bags, Improving infrastructure in schools and providing educational support to the visually challenged students
• 50,000+ students of 100+ schools in and around Kolhapur have benefitted

HEALTHCARE

• Medical Vans reaching 100 rural villages around Kolhapur providing free medicines and check-ups
• 3,00,000+ patients have been benefitted
• Renovated Female Maternity & Gynac ward along with Cardiac department for a government hospital in Kolhapur
• Renovation of District AIDS prevention and control unit

WOMEN EMPOWERMENT

• Trained women through our skilled development centre
• Aimed at making women independent and upgrading their standard of living

WATER & SANITATION

• Installed pure drinking water facilities in various schools and public places
• Collaborated with village gram panchayats to establish various sanitation programmes

AWARDS & RECOGNITIONS

Mr. Mohit Jain honoured with The Economic Times Business Leader: Youth Icon Textiles Award 2021

The 2021 edition of the Awards aimed to bring to the forefront noteworthy business leaders who are spearheading our economy by inspiring accelerated and sustainable growth in their respective fields, post the unprecedented COVID Crisis.

Mr. Mohit Jain has been actively steering growth at Indo Count, with his exemplary vision and vast experience in the textile domain.

"At Indo Count, our key focus has always been to weave an unforgettable legacy of corporate excellence and exceptional service. We continue to transform the world of textiles, one thread at a time."

-Mr. Mohit Jain, Executive Vice Chairman of Indo Count Industries Ltd

Texprocil Awards for 2018-19

Winner of Gold Trophy

For the Highest export performance in Made Ups-Bed Linen/Bed Sheets/Quilts

Winner of Gold Trophy

For the Special Achievement Award in Made-ups

Winner of Silver Trophy

For the Second Highest exports performance in Yarn-Counts 50s and below

Recognitions from Our Customers

Recognized by Walmart corporation as "Giga guru" amongst global top 20 suppliers

Awarded 'Best Collaboration in Design & Product development' by KOHL's, a large retailer in the US

Received 'Platinum Certification Status' for sheets and fashion bedding category by JC Penney, another large retailer in the US

Other Awards

Indo Count Industries Limited CIN: L72200PN1988PLC068972

Mr. K.R. Lalpuria, Executive Director & C.E.O kklalpuria@indocount.com

Mr. K. Muralidharan, Chief Financial Officer (CFO) k.muralidharan@indocount.com

www.indocount.com

Company : Investor Relations Advisors :

Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285

Mr. Shogun Jain

shogun.jain@sgapl.net | +91 77383 77756

Ms. Ami Parekh ami.parekh@sgapl.net | +91 80824 66052

www.sgapl.net