Indo Count Industries Ltd — Investor Presentation 2021

Jan 21, 2021

January 21, 2021

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

Subject: Investor Presentation Q3 & 9M FY2021

Please find enclosed herewith a copy of Investor Presentation on financial results for Q3 & 9M 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

Indo Count Industries Ltd

Head 0I'Iice 301. Arcadia. 3nf Floor. Nariman Point. Mumbai - 400 021. Maharashtra.lndla:T 02243419500. F: 022 2282 3098 Marketing OffJCe: 006IJ Impena. 2nd IIoor Manpada. Ghodbundet Road. Thane (w) - 400 607. Maharashlra Ind,a; T 022 41511800. F. 022 2172 0121 HoMe Textile DMslon T3. Kagal - HatkanangaJe Frve Star. MJDCInd. Area. Kolhapur - 416216. Maharashtra. Indl8 T 0231 6627900. F; 0231 662 7979 5pinr ng OtVlSlOO 01. MIDC. GoIruI Shirgaon. K<*lapur - 416234. Maharashtra.lndia. T' 0231 268 7400. F 0231 2672161 Regel O!!oce Office No.1 Plot No. 266 VillageA1te. Kumbhot Road.TaIuka Hatllanangale. Oist. KoIhapur- 416109. Maharashtra India'T 0230 2463100/2461929 CIN l722OOPNl988PlC0689n. E tnfo@indocoUnlcom. ,.. www.lIldocount.com

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.

Q3 & 9MFY21

Performance Highlights

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

"We are on track with renewed momentum of staying relevant to our customers with the right product & services.

Our technology competence, talented team, complete portfolio solutions along with our long-term commitment makes a difference to our customers and gives us the confidence in these challenging times to move ahead."

RECORD HOLIDAY SALES

• Cyber Monday spending rose 15.1% YoY at \$10.8 billion, setting a record for the largest U.S. online shopping day ever
• Consumers spent a record \$9 billion on retail websites on Black Friday, a growth of 21% YoY
• American consumers' online spending hit a record high of \$5.1 billion on Thanksgiving Day with a YoY growth of 21.5%

- Adobe Analytics

"Retail sales during 2020's November-December holiday season grew 8.3% over the same period in 2019 to \$789.4 billion. The 8.3% holiday season increase was more than double the 3.5% average holiday increase over the previous five years, including 2019's 4% gain"

- National Retail Federation

"Target's sales — both online & instore — grew 17.2%. The Company saw a 4.3% increase in traffic and a 12.3% gain in average ticket size" "Consumers shopped earlier than ever before. Across our expanded 75-day holiday shopping season, sales were up 3.0%, a testament to the holiday season and strength of retailers and consumers alike.

- Target Corporation Home improvement was up 14.1%, with e-commerce sales up 79.7%."

- Mastercard SpendingPulse

Despite unprecedented challenges, consumers and retailers demonstrated incredible resilience this holiday season

The pandemic has created convergence between "HOME" and "Quality of Life" The spaces we live in, and what we demand of them, stand to remain altered forever. This has created an additional demand for Home Textile products

"This year our HOMES have become even more important in our daily lives" -Tim Cook, CEO Apple at launch event on 13th Oct 2020

Declining Interest Rates leading to Consumer Spending

Demand pick-up in suburbs or smaller cities of US

Buoyant property market

Q3FY21: GROWING VOLUMES, REVENUES & PROFITABILITY

*Q3FY20 PAT is after exceptional items

9MFY21: GROWING VOLUMES, REVENUES & PROFITABILITY

RESILIENT INDO COUNT TO SEIZE GROWTH OPPORTUNITIES

SALES VOLUME PERFORMANCE

Sequentially achieving over 20 Mn Meters/quarter

Volume for FY21 will cross 75 Mn Meters

The Board has directed the management team to explore various opportunities to enhance capacities and markets

Current Annual Capacity is 90 Mn Meters

FY21 volumes to cross 75 Mn Meters

Sequentially, new normal quarterly run-rate of over 20 Mn Meters

Particulars (Rs. Crs)	Q3FY21	Q3FY20	YOY%	Q2FY21	QOQ%	9MFY21	9MFY20	YOY%	FY20
Revenue from Operations	783	637		714		1,829	1,712		2,080
Other operating Income	9	0		10		24	30		55
Total Income	792	637	24%	724	9%	1,852	1,743	6%	2,135
Cost of Material	398	353		365		928	937		1,139
Employee Expenses	38	38		36		107	110		148
Other Expenses	213	164		197		509	461		609
Total Expenses	649	555		597		1,544	1,507		1,897
EBITDA	143	81	75%	127	13%	309	235	31%	238
EBITDA Margin (%)	18.0%	12.8%	524 bps	17.5%	51 bps	16.7%	13.5%	316 bps	11.1%
Depreciation	11	11		11		33	32		43
EBIT	132	70	87%	116	14%	276	203	36%	194
EBIT Margin (%)	16.7%	11.1%	559 bps	16.0%	66 bps	14.9%	11.6%	326 bps	9.1%
Finance Cost	7	11		5		17	31		39
Exceptional Items	(0)	(37)		(4)		(4)	(131)		(98)
PBT	125	23		107		255	41		57
Tax	32	3		27		64	(24)		(16)
PAT	93	20	374%	81	15%	191	65	195%	73
EPS	4.71	1.02		4.15		9.76	3.33		3.74

CONSOLIDATED BALANCE SHEET

Particulars (in Rs Crs )	Sep'20	Mar'20
ASSETS
Non -current assets
Property, Plant and Equipment	537	554
Capital work -in -Progress	7	6
Right -of -Use Assets	16	18
Other Intangible Assets	3	3
Financial Assets
(i) Loans	4	4
(ii) Others	0	0
Other Non -Current Assets	5	6
Sub -total - Non current assets	571	591
Current assets
Inventories	476	524
Financial Assets
(i) Investments	80	0
(ii) Trade Receivables	330	242
(iii) Cash and Cash Equivalents	141	139
(iv) Bank Balances	7	11
(v) Loans	1	0
(vi) Others	21	4
Current Tax Assets (Net)	10	23
Other Current Assets	101	161
Sub -total - Current assets	1,168	1,105
TOTAL - ASSETS	1,739	1,696

Particulars (in Rs. Crs )	Sep'20	Mar'20
EQUITY AND LIABILITIES
Equity Share Capital	39	39
Other Equity	1,082	947
Equity attributable to owners	1,121	986
Non -controlling interests	6	7
Sub -total - Equity	1,127	993
LIABILITIES
Non -Current Liabilities
Financial Liabilities
(i) Borrowings	29	36
(ii) Other Financial Liabilities	4	6
Provisions	5	6
Deferred Tax Liabilities (Net)	72	57
Other Non -Current Liabilities	8	8
Sub -total - Non -Current Liabilities	119	114
Current Liabilities
Financial Liabilities
(i) Borrowings	261	293
(ii) Trade Payables due to:	162	129
(iii) Other Financial Liabilities	29	92
Other Current Liabilities	41	75
Current Tax Liabilities (Net)	0	0
Sub -total - Current Liabilities	493	589
TOTAL EQUITY AND LIABILITIES	1,739	1,696

GROWING FOCUS ON B2C SEGMENT

GROWING OUR BRANDS THROUGH B2C & D2C….

Focus Brand Promotion in US, Europe, Middle-East and India

PATENTS, INNOVATION & TECHNOLOGY

Licensed Brands

BRAND BUILDING CAMPAIGNS IN INDIAN MARKET

Living with the stars Not just influencers but A list celebrities

like Soha Ali Khan, Madhuri Dixit, Dia Mirza, Taapsee Pannu, Vidya Balan and 20+ others

'Boutique Living' – An Aspirational Brand

UnfoldTheMoment Bringing to life the core brand proposition

GivingwithLiving initiative in partnership with Myntra for donations to migrant workers through Bosconet

BRAND BUILDING CAMPAIGNS IN INDIAN MARKET

'Layers' – A Value Driven Brand

#DressUpYourHome Launching the brand by identifying the core brand proposition

#GharSeNewYear Keeping in mind the current market dynamic

ADVANTAGE INDIA

INDIAN HOME TEXTILES INDUSTRY IS EYEING A LARGE 3x OPPORTUNITY

Home Textile Size of US market at Retail – \$28bn of which Bed linen is \$14bn i.e. 50% (Bed Linen shown graph below)

FASHION, UTILITY AND INSTITUTIONAL SEGMENT IS A LARGE 3x OPPORTUNITY SIZE FOR INDIAN SUPPLIERS

• ✓ Target market of almost \$10 bn can be addressed and capitalized
• ✓ Currently, China is a dominant player in this category and India is still at a nascent stage
• ✓ China + 1 strategy will help shift these product categories to India
• ✓ Indian Home Textile Industry stands to gain on this potential shift of these product categories

Top 5 Home Textiles Exporting Nations

China has 39% share in home textile exports with US\$ 19 bn followed by India at 11% with US\$ 5 bn

India with growth rate of 4%, has increased its world share from 9% to 11% in the past 5 years. China has remained almost stagnant with a CAGR of 0.7%

On the back of the Covid-19 situation, many brands are expected to reduce dependence on a single geography

India being a second largest home textile exporter along with largest producer of Cotton in the world is expected to benefit from this structural shift

EXPECTED RETAIL CONSOLIDATION IN DEVELOPED MARKETS

Structural Shift

Expect the Market to move to few large players due to strong balance sheet and increased capacities

Consolidation

Increased market share gain could be higher for larger players

Reduced fragmentation

Reduced fragmentation in end markets would lead to increase in share for organized suppliers

Organized Manufacturers

Organized manufacturers to benefit on the back of increased capabilities

Increased Efficiency

Consolidation to lead to Increased efficiency and productivity in manufacturing

INDO COUNT AT A GLANCE

Established in early 1990s and head-quartered in Mumbai, India, Indo Count Industries Limited is one of the leading Home Textile manufacturers with an extensive product range. The product portfolio spans across sheet sets, fashion bedding, utility bedding and institutional bedding. The manufacturing skills extend across the entire value chain.

We export to over 54 countries across 5 continents. Over the years, we have constantly progressed to maximize our unique value proposition whilst building a widespread network of customers, sound financials and strong corporate governance controls.

To be one of the leading players in the global home textiles industry on the strengths of technology, experience and Innovation

MISSION

We are committed to provide all our customers superior product quality, timely services and value for money through our technological and organizational strengths

PRINCIPLES

• Complete Comfort to customers
• Focus on customer satisfaction
• Foster stability and sustainability

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

		PRODUCTS
BED SHEETS	UTILITY BEDDING	FASHION BEDDING	INSTITUTIONAL BEDDING
Flat sheet	Mattress pads	Comforters & Duvets	Basic white sheets
Fitted sheet	Protectors	Shams & Decorative Pillows	Shams & Pillows
Pillowcases	Pillows	Quilts	Bed skirts
	Down Alt Comforters	Coverlets	Duvet covers

SERVICES (WORLD OVER)
Product Development	EDI-based replenishment services	Market Research
Total Supply Chain Solutions	Inventory Planning	Consumer Insights
Modern warehousing services	E-Commerce fulfillment

INDIA Head Office, Factories, Merchandising & Design Studio & Product Development Lab USA Showroom, Warehouse Design Studio UK Showroom, Warehouse Design Studio UAE Showroom

The Maps provided are for pictorial representation only

ICIL established

Established showroom and design studio in UK Enhanced capacity to 68 mn meters

SUSTAINABILITY IS OUR DNA

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SUSTAINABLITY INITIATIVES

Project GAGAN:

cotton initiative

A sustainable

The programme aims at improving awareness among the farmers to cultivate cotton in a more sustainable method. In step with this mindset, we launched an initiative called 'GAGAN' to help farmers to cultivate sustainable cotton through our Better Cotton Initiative (BCI). HIGG INDEX

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.

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.

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.

Conservation of Natural Resource by Water Recycling: Installed Biological Effluent Treatment Plant with 3 Stage RO system

Solar Energy: Installed solar panels leading to savings in power

Sludge Drier: Installed Sludge Drier, a unique initiative that resulted in reduction of sludge disposal from 500 tons/month to almost 50 tons/ month.

STABLE & SUSTAINABLE

RESEARCH & INNOVATION

Strong R&D and innovation capabilities to develop a value-added diversified product bouquet Fulfilling the unique customer requirements to help evolve as the preferred partner of choice

FOCUS ON BRANDS

Unrelenting focus on quality, reliability, and excellence Further leverage of brand position in the International & Domestic markets

AVAILABILITY

Focus on e-commerce and Omni channel business

SUSTAINABILITY

Growth through adopting sustainable business practices

AWARDS & ACCOLADES

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• ✓ 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

Texprocil Awards for 2018-19

Gold

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 Gold Trophy

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

Recognitions from Customers

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

Environmental Awards

Vasundhara Award

Jalbindu Award

CSR INITIATIVES

CSR - EVERY SMILE COUNTS

EDUCATION

• We developed and adopted multifaceted approach through E-learning 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

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

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

WATER & SANITATION

• Promoting sanitation by building/ maintaining toilet blocks
• Installed pure drinking water facilities in various schools and public places

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 | Ms. Ami Parekh +91 77383 77756 | +91 80824 66052 shogun.jain@sgapl.net | ami.parekh@sgapl.net

www.sgapl.net