KPIT Technologies Ltd — Investor Presentation 2023

Aug 17, 2023

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August 17, 2023

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001. Scrip ID: KPITTECH Scrip Code: 542651

Kind Attn: The Manager, Department of Corporate Services

National Stock Exchange of India Ltd., Exchange Plaza, C/1, G Block, Bandra - Kurla Complex, Bandra (E), Mumbai – 400051.

Symbol: KPITTECH Series: EQ Kind Attn: The Manager, Listing Department

Subject:- Investor Presentation

Ref :- Our intimation under Regulation 30 for Schedule of Analyst / Institutional Investor Meetings dated 16 August 2023.

Dear Sir / Madam,

Pursuant to Regulation 30 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, further to our intimation about the schedule of analyst / institutional investor meetings (group meetings and one-to-one meetings) with the Senior Management of the Company as planned today as per details given below:

Date	Conference/Roadshow	Venue
August 17, 2023	Avendus Spark	Mumbai

we are enclosing herewith the presentation to be made in the said investor meeting.

The aforesaid information will be placed on the website of the Company.

Thanking you.

Yours faithfully,

For KPIT Technologies Limited

DESHPANDE Digitally signed by DESHPANDE NIDA YUNUS NIDA YUNUS Date: 2023.08.17 08:56:33 +05'30'

Nida Deshpande Company Secretary & Compliance Officer

Encl.: - as above

KPIT Technologies Limited O +91 20 6770 6000 Registered & Corporate Office: Plot No. 17, Rajiv Gandhi Infotech Park, MIDC-SEZ, Phase-III, E ~~Maan, Taluka-M~~ info@kpit.com ulshi, Hinjawadi, Pune-411057, India. W kpit.com CIN: L74999PN2018PLC174192

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Reimagining Mobility with YOU

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Content of the presentation

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Global Mobility Technology Automotive
enablers for
1. Trends 2. 3. Software spend
Automotive
OEMs commitment Rise of Electric,
Growing markets
4. 5. Autonomous and 6.
towards SDV
Connected vehicles
KPIT, a leading
7. independent
Software Integration
partner to OEMs
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Mobility Trends shaping the Industry

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Boosted by With CASE &
CASE trend, Software in
OEMs continue
functions in vehicle rising, Rise of SDVs
investing
heavily in R&D key domains role of will bring
to sustain
continue software paradigm shift
competitive
getting integration for OEMs
advantage
complex and becomes
relevant critical
R&D CASE Software SDV
Integration
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Shift towards Software Defined Vehicles

CV OEMs Mass-Production OEMs Leader Premium OEMs Leader Software defined

1 Distributed E/E architecture with minimum connectivity and ADAS functionality

2

Partial Consolidation of E/E architecture, L2 ADAS functionality, basic infotainment connectivity

3

Domain centralized E/E architecture, centralized ADAS/AV controllers, L3, L4 capabilities, with OTA functionality

4

Centralized HPC platform, L4+ ADAS capabilities, full vehicle connectivity with cybersecurity solutions

*CV=Commercial Vehicles

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Source: E&Y

OEMs will transition to SDVs by 2030

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By 2026-2027 By 2030 & beyond
Allocating 25-30% of their R&D
Focus on connected services , Transition to central zonal
budget to software to gain
feature on demand and MaaS
architectures from 2027
market share, diversify revenue
as part of monetization onwards
and control cost
Integrated design approach Rely on multiple partners to
Target big revenue stream from
build a Service Oriented
resulting into need for System
cloud analytics and data-driven
integration Architecture
services
The transition towards SDVs offers attractive market opportunities in short-term as well as
in long-term
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SDV: Software defined vehicles | MaaS: Mobility as a service

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Technology enablers for Automotive

Disruptive Technologies with high R&D focus

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OEMs and ecosystem will continue to invest in these technologies

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Electrification and Energy Management

Autonomous Driving Rise of Connected Vehicle Demand for Feature on demand (payment, music, location, comfort features)

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Source: BCG report

Automotive SW market is set to demonstrate high growth

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A solid strong potential in range of $83 bn purely in automotive SW driven by autonomous and connected vehicles

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Source: McKinsey (Jan’23)

7

Long term commitment by OEMs on SW spend

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Targeting 100bn JPY operating profits from software related business in 2030. Software business will turn profitable in 2028

Achieving 30% revenue with software business by 2030. Software businesses include Mobility, Connectivity and Data business.

Software and new business sales to grow USD 15bn in 2025 and 80bn in 2030. New growth includes Cruise, BrightDrop, SES (software-enabled services), Defense and Insurance.

Targeting at least 20% of sales coming from services, data and energy related businesses by 2030.

Plans to generate about EUR 4bn in additional annual revenue by 2026 from software-enabled products and subscriptions and EUR 20bn by 2030.

Targeting to generate as much as EUR 1.2 trillion in revenue by 2030 via subscriptions and other sales under its in-house automotive software arm Cariad.

Most of key OEMs are committed to the investments in SOFTWARE beyond 2030! SDV will stay in the long-term.

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Source: S&P

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Spending by OEMs in traditional areas will come down as compared to in Electric, Autonomous and Connected Vehicles

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Growth Opportunities (2020-2030)

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Source: EY and Goldman Sachs

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Rise in EV sales – Indication of increased electrification

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Increase in sales of EVs highlights the increasing penetration of EVs globally.

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Source: Pwc report WE – Western Europe

Big revenue potential from Autonomous Vehicles

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L3+ AD functions could rise to 17%+ 2035 . Passenger Cars installed with by

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Source: McKinsey (Jan’23)

Connected vehicles can offer incremental value ($) to OEMs through cloud analytics & data driven services

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By 2030 , about 95 percent of new vehicles sold globally will be connected , around 45 percent of these vehicles will have intermediate and advanced connectivity

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Source: McKinsey

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Growing markets - Indian Automobile Industry (1/2)

• India is the third-largest automotive market in the world (by domestic sales)

• In FY23, total passenger vehicle sales reached 3.89 million

• In FY23, total automobile exports from India stood at 47,61,487.

• EVs set to drive the industry (Increase in Penetration due to FAME, PLI, Tax Incentives (direct and indirect), tariffs, etc. USD 206 billion potential by 2030.

• India registered 1,15,836 EV sales in July, 2023.

• Luxury Car Sales keep on rising

• The luxury car market in India accounted for 1 percent of the overall passenger vehicle market in 2022

• With the outperformance at the top end of the market in 2023, the penetration is likely to improve to about 1.1 percent of the market

• It is still very low compared to emerging markets around the world

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Source: ET Auto Article

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Growing markets - Chinese Automobile Industry (2/2)

• World’s largest vehicle market by both annual sales and manufacturing output

• Domestic production of China expected to reach 35 million vehicles by 2025

• China’s EV sales rose by 35.2% year on year to 806,000 units in June

• It is the highest single-month sales figure so far this year

• Chinese customers purchased 3.09 million premium vehicles in 2022

• This includes brands like Mercedes-Benz, BMW, Bentley and Rolls-Royce, up 6 percent yearon-year

• The growth rate was triple the overall passenger vehicle market's, which stood at 1.9 percent year-on-year

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China Passenger Car Association- Link

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KPIT, a leading independent Software Integration partner to OEMs

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Independent software integration partner bringing scale and dependability to build and integrate software features to accelerate the journey from prototype to production

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500+ Production programs experience

10+ Mn vehicles on road with KPIT software

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25+ 75+ platforms, OEM/Tier-1’s tools & count us as accelerators strategic partners

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17+Years 12+Years 07+ Years
6 OEMs 4 OEMs. 7 OEMs
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Long-term relations with marquee Clients

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Our recent technology partnerships

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KPIT to accelerate Honda’s transformation towards Software-Defined Mobility

Renault Group selects KPIT as a strategic technology partner for next generation SoftwareDefined Vehicle (SDV) program

KPIT & ZF join hands to promote an independent company “QORIX”

The partnership in mid to long term will KPIT software scope in the Renault's SDV expand to over 2,000 Software and Vehicle programs will encompass contributions for System Professionals from KPIT across the ADAS, Chassis, Body Electronics, Platforms, globe to power Honda’s SDM roadmap until Systems Engineering, and Vehicle validation. year 2030 and beyond.

QORIX will build on the expertise and relevant IPs of KPIT and ZF to develop open and scalable automotive middleware platforms and solutions for the mobility ecosystem

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Recent acquisitions to strengthen our offerings in this area

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Future Mobility Solutions (FMS Gmbh)

Future Mobility PathPartner Solutions (FMS Technology Gmbh) FMS group PathPartner strengthens KPITs strengthens software offering in the AD integration domain as well as in capabilities and help the areas of Mobility deliver complex as a service, software solutions for Digitization, & new-age vehicle Sustainable Mobility architectures.

SOMIT solutions SOMIT Solutions’ cloud-based platform complements KPITs existing after-sales platform to offer a more integrated solution

Technica Engineering

KPIT’s extensive software expertise gets vertically integrated with Technica Engineerings’ production-ready system prototyping specialization making it a game changer for the industry

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Summary

1. Tremendous opportunities ahead in Automotive Software market on account of transition towards Software Defined vehicle

2. Automotive Software market is set to rise at a CAGR of 9%+ bringing huge potential of ~$83 bn by 2030

3. OEMs have committed larger part of their R&D spend on software with an aim to achieve additional revenue stream by 2030

4. KPIT is best positioned to leverage these opportunities

5. Strategic focus on clients

6. Technology investments (both organic and inorganic)

7. First mover advantage in SDV engagements

8. KPIT will continue to invest in technologies to enable OEM’s transition to SDV

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Thank You!

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