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MALLCOM (INDIA) LTD. Investor Presentation 2022

Nov 10, 2022

61210_rns_2022-11-10_d0ade419-652a-4c9b-8932-365625bc8b3d.pdf

Investor Presentation

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Ref: MIL/BSE/NSE/22

Date: November 10, 2022

Ref: MIL/BSE/NSE/22
Date:November 10, 2022
The Manager
Corporate Relationship Department
BSE Limited
1st Floor, New Trading Wing, Rotunda
Building,
P J Towers, Dalal Street, Fort, Mumbai -
400001
The Manager
Listing Department
National Stock Exchange of India Limited
Exchange Plaza, 5th Floor,
Plot No. C-1, Block G,
Bandra Kurla Complex, Bandra (E),
Mumbai - 400051
BSE Security Code: 539400 NSE Symbol: MALLCOM

Dear Sir/Madam,

Sub: Investor Presentation

We are forwarding herewith Investors Presentation of Mallcom (India) Limited taking into account Relevant information for the Quarter and half year ended 30[th] September, 2022.

This is for your kind information and record.

Thanking you

Yours faithfully For Mallcom (India) Ltd.

ANUSHRE Digitally signed by ANUSHREE BISWAS E BISWAS Date: 2022.11.10 18:56:33 +05'30'

ANUSHREE BISWAS

Company Secretary & Compliance Officer

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Mallcom (India) Limited E a r n i n g s P r e s e n t a t i o n – Q 2 / H 1 - F Y 2 3

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SNAP SHOT

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Experienced Management Largest integrated Indian with over 38 years of Personal Protective Industry experience Equipment (PPE) manufacturer

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One of the widest protective Employing 3000+ skilled gear product range catering and semi-skilled workers to diversified industries of which 36% are women

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13 manufacturing units Manufacturing Plants (DTA, across India, equipped EOU & SEZ units) located in with best in-class West Bengal, Uttarakhand & machinery Gujarat with easy access to local markets, sea & airports

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Dedicated R&D centers and teams for product innovation and improvements

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New range of product launches every season

Mallcom (India) Ltd

2

COMPANY OVERVIEW

Mallcom India Ltd was founded in 1983 by Mr. Ajay Mall as a small leather gloves manufacturer headquartered out of Kolkata, India.

Today it has grown to become one of the largest manufacturers and distributors of Personal Protective Equipment (PPE) products in India, with over 90% of orders coming from repeat customers.

An ISO certified and government-registered trading house, Mallcom provides a onestop solution for manufacturing one of the widest range of head-to-toe PPE products from helmets, eyewear, ear protection, face masks, safety garments, gloves, to shoes, and many more.

The company is also one of the largest exporters of PPE products from India exporting to 55+ countries across 6 continents.

It has an expansive manufacturing footprint with 13 production facilities spread across India and captive test labs that ensure quality standards.

Over the year the company has focused on backward integration wherever possible resulting into significant cost savings and gradual margin expansions.

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Operational Revenue (INR Mn) and EBITDA Margins (%)

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4 0 , 0 3,572 2 5.0 0%
3 ,50 0 2,877 3,169 2 . 0 0%
3 0 , 0 1,980
2 ,50 0 1 5.0 0%
2 0 , 0
1 ,50 0 13.13% 13.91% 13.84% 1 . 0 0%
1 0 , 0
10.95% 5 . 0 %
5 0
- 0 . 0 %
FY20 FY21 FY22 H1-FY23
Operational Revenue (INR Mn) EBITDA Margin (%)
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H1-FY23 Geographical Revenue Mix (%)

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North America 3%
Australia 1%
South America
13%
Europe
42%
Asia
41%
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Mallcom (India) Ltd

3

BUSINESS OVERVIEW

  • Mallcom is a one-stop solution for all types of personal protective equipment providing the entire gamut of protection from Head to Toe.

  • Mallcom is one of the few companies to have an indigenous expertise with various raw materials such as textile, leather, rubber, and plastic.

  • Over three decades, the firm has gained immense knowledge and skillset to deal in an array of products such as safety helmets, face masks, leather gloves, textile gloves, nitrile gloves, safety apparels, rainwear, and safety shoes.

  • The company also offers eyewear, ear protection equipment, latex gloves, neoprene gloves, and harnesses in its brand.

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H1-FY23 Product Revenue Matrix
Others
3%
Hand Safety Shoes
Protection 33%
36%
Garments
28%
Production 1.2M 3.6M 150M 14M
& Servicing Helmets Apparel Masks NBR Gloves
Annual
12M 2.8M 3M
Capacity
Leather Gloves Knitted Gloves Shoes
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FOOT BODY HAND HEAD PROTECTION PROTECTION PROTECTION PROTECTION Mallcom produces Mallcom’s exclusive Mallcom has Mallcom works sturdy shoes that workwear ranges gained expertise in in close can tackle from light-weight to production of hand coordination challenges in heavy-duty industrial gear suiting the with the construction, work wear. It also application designers and mining, makes winter requirement. the users to metallurgical and protection, provide dynamic From driving to other manufacturing uniforms, and head protection welding to cut industries. corporate casual gear. resistant, it is able wear. With an annual to meet crucial The company production capacity These provide high industrial manufactures of more than three protection and are applications. helmets, face million pairs, utilized in several masks, eyewear, A wide range of Mallcom is the sectors such as ear protection hand protection leading safety shoe hospitality, healthetc. gears lie in the manufacturer and care and for general repertoire of distributor from industrial purposes. Mallcom, including India. Special fabrics leather gloves, protects the wearer string knit gloves in environments and nitrile gloves. such as heat, fire, and extremely cold temperatures.

Mallcom (India) Ltd

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FINANCIAL OVERVIEW Q2/H1–FY23

CONSOLIDATED FINANCIAL HIGHLIGHTS

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Q2-FY23 Financial Performance:

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Operational Operational
Income EBITDA EBITDA Margin Income EBITDA EBITDA Margin
INR 154 Mn 13.91% INR 274 Mn
INR 1,107 Mn INR 1,980 Mn 13.84%
Net Profit
PAT Margin
Net Profit PAT Margin
INR 95
8.58%
INR 164 8.28%
Diluted EPS Diluted EPS
INR 15.19 INR 26.31
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Mallcom (India) Ltd

6

Q2/H1-FY23 OPERATIONAL HIGHLIGHTS

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  • The company achieved its highest ever Quarterly Consolidated Turnover & Profit Before Tax in Q2-FY23.

  • The growth in topline in Q2-FY23 was driven by equal growth contribution from all product segments led by Body Protection range achieving a growth of 37.8% QOQ.

  • The improvement in EBITDA margin versus the previous quarter was mainly on account of Raw Material and administrative costs going down.

  • Turnover ratio between Branded Sales Vs. Private Label Sales improved YOY from 34:66 to 37:63 in H1-FY23, with Branded Sales registering a growth of 34.65% YOY vis-a-vis 19.23% YOY growth for Private Label Sales in H1-FY23, signifying better brand recall and acceptance of the company’s products in local markets.

  • Relatively lower Consolidated EBITDA margin of 13.80% in H1-FY23 has been also due to higher operational costs for the subsidiaries namely "Mallcom Safety Private Limited" & "Best Safety Private Limited" both SEZ units, where we expect to ramp up the productivity and operations further in H2-FY23.

  • During the Quarter, the Ghatakpur (Kolkata) Unit, Phase - 1 for Safety Garments was made operational and with the manufacturing facility further being ramped up we expect additional contributions from the unit in H2-FY23.

Mallcom (India) Ltd

7

QUARTERLY CONSOLIDATED FINANCIAL PERFORMANCE

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Income Statement (INR Mn) Q2-FY23 Q2-FY22 Y-o-Y Q1-FY23 Q-o-Q
Operational Income 1,107 976 13.4 % 874 26.7 %
Total Expenses 953 828 15.1 % 755 26.2 %
EBITDA 154 148 4.1 % 119 29.4 %
EBITDA Margins (%) 13.91 % 15.16 % (125) Bps 13.62% 29 Bps
Depreciation 22 21 4.8 % 21 4.8 %
Finance Cost 3 4 (25.0) % 4 (25.0) %
Other Income 1 5 (80.0) % 1 NA
PBT 130 128 1.6 % 95 36.8 %
Tax 35 32 12.5 % 26 38.5 %
Profit After Tax 95 96 (1.0) % 69 37.7 %
PAT Margins (%) 8.58 % 9.84 % (126) Bps 7.89% 69 Bps
Non-Controlling Interests 1 - - 5 (80.0) %
Other Comprehensive Income 2 1 NA -1 NA
Total Comprehensive Income 96 97 (1.0) % 74 29.7 %
Diluted EPS (INR) 15.19 15.36 (1.1) % 11.12 36.6 %

Mallcom (India) Ltd

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HALF YEARLY CONSOLIDATED FINANCIAL PERFORMANCE

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Income Statement (INR Mn) H1-FY23 H1-FY22 Y-o-Y
Operational Income 1,980 1,591 24.5 %
Total Expenses 1,706 1,363 25.2 %
EBITDA 274 228 20.2 %
EBITDA Margins (%) 13.84 % 14.33 % (49) Bps
Depreciation 42 36 16.7 %
Finance Cost 8 7 14.3 %
Other Income 2 11 (81.8) %
PBT 226 196 15.3 %
Tax 62 50 14.0 %
Profit After Tax 164 146 12.3 %
PAT Margins (%) 8.28 % 9.18 % (90) Bps
Non – Comprehensive Income 5 - NA
Other Comprehensive Income 1 3 (66.7) %
Total Comprehensive Income 170 149 14.1 %
Diluted EPS (INR) 26.31 23.4 12.4 %

Mallcom (India) Ltd

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CONSOLIDATED HISTORICAL INCOME STATEMENT

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Income Statement (INR Mn) FY20 FY21 FY22 H1-FY23
Operational Income 2,877 3,169 3,572 1,980
Total Expenses 2,562 2,753 3,075 1,706
EBITDA 315 416 497 274
EBITDA Margins (%) 10.95% 13.13% 13.91% 13.84%
Depreciation 56 58 83 42
Finance Cost 26 16 20 8
Other Income 5 32 31 2
Exceptional Item 15 - - -
PBT 253 374 425 226
Tax 64 91 109 62
Profit After Tax 189 283 316 164
PAT Margins (%) 6.57% 8.93% 8.85% 8.28%
Non – Controlling Interests - 0 10 5
Other Comprehensive Income - - 0 1
Total Comprehensive Income 189 283 326 170
Diluted EPS (INR) 30.26 45.30 52.28 26.31

Mallcom (India) Ltd

10

CONSOLIDATED BALANCE SHEET

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PARTICULARS (INR MN) FY21 FY22 H1-FY23 PARTICULARS (INR MN) FY21 FY22 H1-FY23
Assets Equity and Liabilities
1. Non-Current Assets: 695 857 948 1. Equity 1,468 1,764 1,955
(a) Property, Plant and Equipment's 474 629 845 Equity Share Capital 62 62 62
(b) Intangible Assets 45 43 82 Other Equity 1,353 1,660 1,854
(c) Capital Work In Progress 146 147 0
Minority Interest 53 42 38
(d) Financial Assets
2. Non-Current Liabilities 42 124 115
(i) Loans 10 10 9
(a) Long Term Borrowings 36 60 56
(e) Non - Current Tax Assets (Net) 20 28 11
(b) Other Financial Liabilities - 60 56
2. Current Assets 1,830 1,934 2,168
(c) Deferred Tax Liabilities 6 4 3
Inventories 572 715 861
3. Current Liabilities 1,015 903 1,047
Financial Assets
(i) Financial Liabilities
(a) Investments 188 - 236
(a) Short-Term Borrowings 533 474 661
(b) Trade Receivable 482 694 546
(b) Trade Payables 363 354 296
(c ) Cash and Cash Equivalents 40 39 29
(d) Other Bank Balances 267 247 162 (c) Other Financial Liabilities 37 10 10
(e) Loans 1 1 1 (ii) Other Current Liabilities 81 65 81
Other Current Assets 280 238 335 (iii) Provisions 1 - 0
Total Assets 2,525 2,791 3,117 Total Equity and Liabilities 2,525 2,791 3,117

Mallcom (India) Ltd

11

CONSOLIDATED FINANCIAL PERFORMANCE

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Operational Income (INR Mn)

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3,572
3,169
2,877
1,980
FY20 FY21 FY22 H1-FY23
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EBITDA (INR Mn) and EBITDA Margins PAT (INR Mn) and PAT Margins (%)
600 (%) 60. 00% 350 316
497 300 283
500 50. 00%
416
250
400 40. 00% 189
315 200 164
274
300 30. 00%
150
200 20. 00% 100
8.93% 8.85%
100 10. 00% 50 6.57% 8.28%
13.13% 13.91% 13.84%
10.95%
0
0 0. 00%
FY20 FY21 FY22 H1-FY23
FY20 FY21 FY22 H1-FY23
PAT (INR Mn) PAT Margin (%)
EBITDA (INR Mn) EBITDA Margin (%)
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PAT (INR Mn) and PAT Margins (%)

30.00% 28.00% 26.00% 24.00% 22.00% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

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Dividend (INR/share)
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3.00 3.00
2.00
FY20 FY21 FY22
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Net Worth (INR Mn)

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1,955
1,764
1,468
1,102
FY20 FY21 FY22 H1-FY23
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Net Debt to Equity (x)

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0.28
0.26
0.18
0.14
FY20 FY21 FY22 H1-FY23
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Mallcom (India) Ltd

12

CAPITAL MARKET DATA

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Share Price Data as on 30th September 2022

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Mallcom Sensex
50%
40%
30%
20%
10%
0%
-10%
-20%
Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22
Shareholding Pattern as on 30th September 2022
Price Data (As on 30th September 2022)
FPI
Face Value (INR) 10.0
0.75%
Market Price (INR) 680.8
Public
52 Week H/L (INR) 985.0/605.6
25.47%
Market Cap (INR Mn) 4,248.2
Promoter
Equity Shares Outstanding (Mn) 6.2 73.78%
1 Year Avg. Trading Volume (‘000) 3.8
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Mallcom (India) Ltd

13

DISCLAIMER

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Mallcom India Ltd.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Mallcom India Limited (“Company”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. Please note logo’s of other brands used in the presentation are not Mallcom’s and should not have an IP issue

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and 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.

Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

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For further details please contact our Investor Relations Representatives: VALOREM ADVISORS

Mr. Anuj Sonpal Tel: +91-22-49039500 Email: [email protected]

Mallcom (India) Ltd

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THANK YOU

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