PDS LIMITED — Investor Presentation 2021

Aug 4, 2021

PDS Multinational Fashions Limited

PDS/SE/2021-22/33 August 4, 2021

Listing Department	Corporate Relationship Department
National Stock Exchange of India Limited	BSE Limited
Exchange Plaza, C-1 Block G,	Phiroze Jeejeebhoy Towers,
Bandra Kurla Complex, Bandra (E),	Dalal Street,
Mumbai -400 051	Mumbai-400001
Scrip Symbol: PDSMFL	Scrip Code: 538730

Re: ISIN - INE111Q01013

Sub: Investor's Presentation for the announcement of the Financial Results for the Quarter ended June 30, 2021, i.e., Q1-FY2021-22 Earnings Release

Dear Sir/ Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Investors' Presentation of PDS Multinational Fashions Limited for the announcement of the Financial Results for the Quarter ended June 30, 2021, i.e., FY 2021-22 Earnings Release.

We request you to kindly take the above on record for the purpose of dissemination to the Shareholders.

Thanking you,

Yours faithfully, for PDS Multinational Fashions Limited

�J-

Abhishekh Kanoi Head of Legal & Company Secretary ICSI Membership No.: F-9530

Encl.: As Above

Global, Collaborative, Ethical

Building a sustainable future

PDS Multinational Fashions Ltd

I N VESTOR UPDAT E – Q 1 FY22

Safe Harbour

This presentation has been prepared by PDS Multinational Fashions Ltd ("PDS", "the Company") and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute an offer.

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 such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements", including those relating to the general business plans and strategy of PDS, its future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as 'will', 'expected to', 'horizons of growth', 'strong growth prospects', etc., or similar expressions or variations of such expressions. Such forward looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. PDS Multinational Fashions Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

PDS may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner

Table of Contents

1	PDS -Power of the PDS Platform	4
2	Building a Sustainable Future	5-6
3	PDS's Sustainability Goals & Initiatives	7-18
4	Business & Financial Performance Overview	19-35
5	Peer Comparison	36-38
6	Shareholders Return	39-40
7	Annexure	41-50

Power of the PDS Platform

With sustainability agenda at its core

Key Building Blocks for PDS's Global Platform

Note: ROCE & ROE are adjusted for dividend; ROCE based on Net Capital Employed, EBIT includes other income emanating from capital employed. ROCE, ROE and Net Debt/EBITDA are based on TTM figures

As per Mckinsey article,

"Fashion alone accounts for 4 percent of greenhouse gas emissions."

"65 percent of German and UK consumers now say they will buy more high-quality items that last longer, and 64 percent of Chinese consumers will consider more environmentally friendly products"

Building a Sustainable Future

• 1. PDS has created a global footprint and is associated with marquee brands and retailers
• 1. One critical aspect which is closely evaluated by brands and retailers in their partners is the "sustainability agenda"
• 1. Sustainability as a concept has moved up as a key consideration for many retail players
• 1. This trend is further accelerated in the post COVID world especially with consumers wanting to limit the impact of climate change and make a difference
• 1. This trend is also extending to investors with environmental, social, and corporate governance (ESG) funds which have doubled in last 3 years

Source: https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/ourinsights/nef-spotlight-the-path-forward-for-retails-sustainable-future

Impact of the Fashion Industry Waste | Emissions | Living Wages | Microfibres and much more

a

92m tons

of textile waste is created from the fashion industry

Source: CO Expo Masterclass Series 2021

2%

of the people who make the clothes on our bodies earn a living wage

If the fashion industry were a country, it would be the world's 4th largest emitter of CO2

35%

of all microplastics in the world's oceans are from synthetic textiles

International Union for Conservation of Nature

Next few slides captures initiatives undertaken by PDS to drive sustainability across the platform

PDS's Sustainability Goals & Initiatives

Sustainability Goals of the PDS platform

Promoting sustainable materials, low impact manufacturing and investing in a sharing circular economy

A Right Product, Right Country, and Right Factory strategy which helps deliver low impact distribution and emissions

PDS Venture Tech Investments focused on 3 prime areas derived from UN Sustainability Development Goals

Sustainable Communities:

Investing in businesses creating and promoting sustainable communities/platforms.

Materials: Focusing on sustainable alternatives to raw materials and their production in a sustainable way.

Circular Economy: Targeting recycling and reusability to prevent clothes from ending up in a landfill.

PDS Sustainability Initiatives

Minimize environmental impact, while sustaining business & communities we serve

sharing economy

Teams across geographies Bangladesh, Sri Lanka, India, Pakistan, China, Cambodia

Net Positive Energy Consumption – Norlanka Solar Project 2021

60,000 kWh Average monthly consumption Norlanka Trinco

76,000 kWh

Average renewable energy generated through the solar project

Sustainable manufacturing @ Bangladesh

Lilly + Sid: Sustainable brand launched in India

Organic C0Ueot1on

Lilly + Sid, the organic award-winning British kids wear brand launched in India with an exclusive tie up with Reliance Retail's fashion marketplace: Ajio.com, supplemented by own website www.lillyandsid.co.in

Fabrics

• 95% of our garments made from organic cotton (Global Organic Textile Standard certified)
• Non-cotton fabrics are eco-friendly too. New swimwear is made from recycled fishing nets and at UPV50+ protects little ones and the planet
• Dyes are Azo free, kinder to the environment and kinder to the wearer

Factories

• Factories are members of the ETI (Ethical Trading Initiative), SA8000 accreditation (Social Accountability Accreditation) or are SEDEX certified
• Teams based in India and Sri Lanka visit the factories regularly and ensure all our standards are met

Brand has won multiple accolades over the last ten years including the 'Top 10 Ethical Brands Worldwide' by Guardian, UK and the prestigious 'Loved By Parents' Award in 2017, 2018, 2019, 2020 and 2021.

Sustainability through product innovation (1/2) Biodegradable Jean - "Made to last,

• Offers a premium selection of sustainably sourced fabrics ranging from organic cotton to anti-microbial infused fibres and BCI Cotton is infused into fabrics
• Repreve® Our Ocean™ Jeans: Each pair of jeans in this series has its polyster yarns transformed from upcycled bottles at high risk of entering the ocean into durable Repreve® Our Ocean™ fibres.

Safe to Wear + Traceability

• 100% our fabrics are certified with Standard 100 by Oeko-Tex®
• Cost neutral Oeko-Tex labelling on volume lines
• Vast majority of products with Oeko-Tex Made In Green

'Plant me' Handtag

Corozo Buttons

Plant based product that is environmentally friendly and dyes used are non-toxic and biodegradable

sustainably in accordance with OEKO-TEX® guidelines. www.madeingreen.com

This purchase Is a smart choice.

It has been verified as free from harmful levels of more than 300 substances and was produced in factories committed to sustainable environmental and social practices.

ltlSTIIHIU I TUCUILC I CIICUlllJU

Sustainability through product innovation (2/2)

RE/FORM by Zamira Denim Lab, 100% sustainable, authentic denim garment label, produced with the latest cuttingedge technology

Building capabilities in the Circular Fashion space Resale fashion - The future of fashion

Resale market is growing 11x faster than traditional retail and expected to be $77bn by 2025

• Yellow Octopus Group is a sustainable solutions provider for the fashion industry
• Focussing on building commercially viable solutions to transform the fashion industry from a Linear to a Circular Economy model
• Provide new revenue streams for brands and retailers to help them reduce the environmental impacts of their fashion products, while demonstrating corporate responsibility & strengthening brand's reputation
• Extending the life of clothing by an extra nine months of active use would reduce carbon, waste and water footprints by around 20%-30% each and cut resource costs by 20%
• Diverting clothes from landfill and making new products and materials out of fashion waste to continually reduce the environmental impact of the industry whilst creating new growth opportunities for retailers

Our End Goal Is Transforming Fashion Industry From Linear To Circular Economy Model

Our end goal is a closed loop system within the fashion industry. Ambitious? Hell Yeah. Impossible? Watch this space.

• Supports the reselling of no longer wanted products into the second hand (pre-owned) market
• Technology connects brands to the secondhand marketplaces
• Enable shoppers to resale past purchases on the brand's website to earn shopping credits
• The piece is rehomed and given a second life, taking fashion full circle

Technological tools providing sustainable solutions Enabling cost reduction and lower carbon footprint

3D Design, Sampling & Fit

DIZBI XR

Virtual Showroom

Reduce costs for

• Raw material generation
• Raw material transportation
• Raw material freight
• Factory stitching
• Garment freight

Reduce costs for

• Sample freight

• Air Travels

Reducing overall carbon footprint

Reducing overall carbon footprint

Putting Colour in Context

PDS Venture Tech Portfolio (1/2)

Focussed on Sustainability and Circular Economy

Evrnu is a Research and Development Company offering a suite of innovative technologies that transform post-consumer cotton waste into a high-quality fiber source used for textile creation

USP: Can eliminate 30% of garment waste headed to landfills, 80% of pollutant emissions, & 98% of the water required for virgin cotton production

Products: Cellulosic Fibres, Recycled Fibres

Materra is a planet-centric technology company working towards climate resilient cotton agriculture

USP: Can farming solution enables higher yields, higher quality fiber and higher resource efficiency in cotton farming

Products: Cotton, Natural Fibres

Low Impact Manufacturing Circular Fashion PDS Venture Tech Investments

PDS Venture Tech Portfolio (2/2)

Focussed on Sustainability and Circular Economy

Good On You uses consumer power to create a sustainable future – rating fashion brands for their impact on people, the planet and animals

USP: Comprehensive brand ratings system and online discovery platform for fashion

Services: Campaigning / Awareness Raising, Industry Support, Marketing, PR, Sustainability Consulting

Unspun is a robotics and digital apparel company building custom jeans for each consumer, on demand

USP: looks to reduce global carbon emissions by 1% through automated, localized, and intentional manufacturing

Products: Womenswear, Menswear, Denim, Couture, Outdoor wear

unspun

PDS Platform – Business Overview

Investments

PDS Value Proposition

Global platform for leading apparel brands / retailers across geographies

Offers a distinct range of services that empower the brands/retailers and the manufacturers

• Product design services led by deep insights into latest fashion trends
• Quality inspection and testing
• Assurance of adherence to high compliance standards
• Supply chain and logistics management
• High scalability, supported by a carefully chosen supplier network

Connecting link between customers and suppliers

• Access to marquee fashion brands and retail chains
• Design support and knowledge sharing
• Provision of working capital provision for business growth
• Opportunity to achieve scale led by large order volumes
• Drive profitability across the vendor network

Design Led Sourcing Capabilities of the Platform Immense scalability potential through +500 factory partners

Let's have a look the way we actually conduct ourselves

PDS acts as the connecting link between customers and suppliers while providing value added services such as deep design capabilities, assurance of quality and compliance standards, and supply chain management for global clients.

Value of Sales (MV)	Particulars (₹cr)	FY21
handled in Q1 FY22 up by65%	Merchandise Value (MV)	6,073
	Revenue	972
High scalability withminimal capex	Revenue as % of MV	16.0%
	EBITDA	324
	EBITDA as % of Revenue	33.3%
Power of platform canresult in declining NWCdays	Gross Capital Employed	509
	ROCE (%)	64%

Repositioning PDS as a new age services platform with superior financial matrix

A Well Diversified Base Of Marquee Customers

Catering to both offline & online channels
TESCO	JACK WILLS	KOHĽS		Superdry.	PRIMARK®	Sainsbury's
George.	NEWYORKER		BESTSELLER *	PSHOPT OTOPMAN	MATALAN
PULL&BEAR	NAXL		TKMOX	MANGO	RIVER ISLAND	amazon.com
AMERICAN EAGLEOUTFITTERS	Calvin Klein	next	URBANOUTFITTERS	ZARA	C&A	WWW Myntra
RALPHALAUREN	Kroger	maurices	boohoo	$\boldsymbol{\psi}$	asosBershka	PACSUN
	BOOTLEGGERHanesThe Place for Jeans	COSTCO		Carrefour	Walmart >'.LADL	WEALDI

On an average basis, each of top 10 customers contribute < 6% of topline

Manufacturing capabilities

Performance heading towards profitability (Sales up 85% in Q1, EBIT loss down 38%)

c.6,000 Machine Capacity with 130 production lines spread across Bangladesh, Sri Lanka and India Annual in-house production of 36 Million pieces

Facilities have turned around and are self sustaining

NOR LANKA, SRI LANKA

• Manufacturing Facility based out of Sri Lanka with 320 Machines
• Specializes in Knits, Kids wear
• ASDA George, Next, Primark
• Based on a job work arrangement

34% of Total Capacity

PARC DESIGN, INDIA

• Total Planned capacity of 1,000 machines
• Specializes in Ladies Softs and Girls-wear
• Bestseller and Matalan
• Held through minority stake

Targeting to double topline in FY22, resulting near breakeven and self sustaining on cash

GREEN SMART SHIRTS, BANGLADESH

• Manufacturing facility with capacity of 2,000 machines
• Formal & Casual shirts/blouses for Ladies, Men and Kids
• Next, Primark and Bestseller
• On track to be break even in FY22
• Running near full capacity and now focus on increasing efficiency

PROGRESS APPAREL, BANGLADESH

• Capacity of 2,500 Machines
• World Class Manufacturing facility with Accord Compliant (95%)
• Primarily focused on bottom wear
• Next, C&A and Express
• On track to be profitable in 4 quarters
• Running near full capacity and now focus on increasing efficiency

With the increase in topline due to higher capacity utilization, the business is on trajectory of achieving profitability

Rationale for PDS Venture Tech Investments

PDS is continually exploring opportunities for developing new partnerships and investing in businesses that fit with PDS's vision

• 1. Investment opportunities enable PDS to strengthen its focus areas:
  • a. Sustainability Materials, Circular Economy, Sustainable Communities
  • b. Technology Fashion Tech, Consumer Tech & Other Tech
  • c. Consumer Brands B2B, D2C
• 1. Through these investments PDS enhances its value proposition for its customers, vendors, and stakeholders
• 1. Further enables PDS create collaboration and synergies with PDS ecosystem
• 1. PDS is partnering with leading funds for co-investing in select opportunities
  • a. Creating higher levers of control in the investee companies

PDS is investing in reshaping the industry

Sourcing Manufacturing PDS Venture Tech Investments

PDS Venture Tech Investments & Others Portfolio allocation

PDS Investment Portfolio ₹214cr ($29mn) Treasury Investments (31%) ₹67cr ($9mn) Real Estate & Others (25%) ₹54cr ($7mn) PE Investments (43%) ₹93cr ($13mn) Portfolio includes a) Bonds b) Equity c) Keyman Insurance Primarily properties in key locations of United Kingdom, Hong Kong and India Portfolio focussing on sustainable B2B & D2C businesses 17% of total PDS gross capital employed 5% of total PDS gross capital employed 4% of total PDS gross capital employed 7% of total PDS gross capital employed

UK property has been disposed off at a profit of ₹41cr (US$6mn) during the quarter (21% of FY21 investment portfolio)

Valuation of £8.5mn ($11.9mn) done by Strutt & Parker, London

Rationale for PDS Venture Tech Investments

• 1. PDS operates in a volatile industry in which customer stickiness needs to be created
• 1. Price based offering is not sustainable for the business as customer will shift if they get cheaper options
• 1. PDS is identifying opportunities that align with our vision and key focus areas
  • a. Investing in businesses that fit with the future of our industry
  • b. Investing in IP knowledge and on track with the developments of the future of the industry
• 1. PDS operates an asset light business model, this is pseudo capex – investing in future of the industry which will create long term value for various stakeholders in the ecosystem

Q1 FY22 Business & Financial Performance Overview

• 1. Achieved a topline of ₹1,626cr (68% growth compared to Q1 FY21)
  • a) Surpassed pre-Covid (Q1 FY20) levels and are geared for further growth and profitability during the year
  • b) Topline growth in Q1 is driven by Merchandise Value handled by our Sourcing division
  • c) Gross Margins of 17.3% (increased by 58bps with a growth of 74%) and EBIT of ₹66cr (increased by 3 times) compared to Q1 FY21. We continue to keep a watch on input price and increase in freight cost
  • d) PAT increased by 27x to ₹59cr compared to Q1 FY21
• 1. Manufacturing business has witnessed a good trajectory in Q1 FY21
  • a) Topline increased by 85% compared to Q1 FY21. Order book position in Q2 FY22 continues to be strong
  • b) Compared to last year PBT losses have significantly declined by 37%. Trend is expected to continue
• 1. In July 2021, PDS on-boarded team focusing on young fashion print and fast fashion led by Russell Wyeth
  • a) Russell Wyeth is a seasoned professional with 30 years of experience supplying to UK high street & digital retailers
  • b) He set up his company, Collective Apparel Ltd, where the business grew from an idea into sales of $50mn in 2020
• 1. The markets are beginning to look 'Stable' to 'Positive'. We should now scale up from here

Key Financial Highlights Q1 FY22

Revenue Break up (Q1 FY22)*

Consolidated Profit & Loss Statement

₹ in cr, unless mentioned otherwise

Key Highlights of performance during the quarter

• 1. Income from Operations increased by 68% in Q1 FY22 vs Q1 FY21 coming out of impact of Covid
• 1. EBITDA increased by 121% compared to Q1 FY21
• 1. Finance cost declined by 55% compared to Q1 FY21
• 1. PBT increased by 15x to ₹62cr
• 1. PAT increased by 27x from ₹2cr in Q1 FY21 to ₹59cr in Q1 FY22
• 1. PAT margin expanded by 3.4% compared to Q1 FY21

Performance in Q1 over last 5 years

Consistently delivered growth & profitability and have exceeded pre-Covid levels

Consolidated Balance Sheet

Net working capital days are now down to 2 days

₹ in cr, unless mentioned otherwise

	Ason
Particulars	30-Jun-21	31-Mar-21	30-Jun-20
Non-CurrentAssets	565	594	578
CurrentAssets	1884,	1752,	1730,
Inventories	256	197	215
TradeReceivables	853	910	669
Cashandcashequivalents	324	293	342
OtherBankBalances	141	137	150
OtherCurrentAssets	311	214	354
TotalAssets	2450,	2346,	2307,
TotalEquity	751	716	604
LiabilitiesNon-Current	66	66	101
Borrowings	1	2	7
OtherLiabilitiesNon-Current	65	64	94
CurrentLiabilities	6331,	5641,	6021,
Borrowings	502	488	636
TradePayables	931	892	667
OtherLiabilitiesCurrent	199	184	299
TotalEquity&Liabilities	2450,	2346,	2307,

Ason
30-Jun-21	31-Mar-21	30-Jun-20
16	14	16
45	53	40
59	63	48
2	5	8
503	490	644
38	59	152

Working Capital & Leverage Ratios:

• 1. Net Working Capital Days decreased from 5 days to 2 days
• 1. Total Debt has decreased by ₹141cr since Jun 2020 & Net Debt decrease of ₹114cr, resulting in
  • a) Net Debt/Equity decreased from 0.25x to 0.05x
  • b) Net Debt/EBITDA decreased from 0.86x to 0.15x

Return to Stakeholders:

• 1. ROCE* has increased from 20% in Q1 FY21 to 33% in Q1 FY22
• 1. ROE* has increased from 12% in Q1 FY21 to 29% in Q1 FY22

Consolidated Cash Flow Statement

We continue to deliver cash flow from operations

₹ in cr, unless mentioned otherwise

Particulars	Quarter	FullYear
	30-Jun-21	31-Mar-21
CashFlowfromOperatingActivitiesA
Profitbeforetax	62	170
andDepreciationamortizationexpense	17	68
FinanceCosts	5	26
saleofsubsidiaryGainon	-41	0
Others	-2	-4
(Increase)/DecreaseinNetCurrentAssets	20	120
TotalCashFlowfromOperatingActivitiesA	62	379
CashFlowfromInvestingActivitiesB
Purchaseof, plantandintangibleequipment&property	-14	-27
Purchaseofinvestments	-6	-86
Increase/(decrease)depositsin	-3	15
Changeotherfinancialinassets	-23	0
fromofProceedssaleinvestments	0	12
Others	1	2
TotalCashFlowfromInvestingActivitiesB	-44	-83
(A+B)TotalCashFlowfromOperatingandInvestingActivities	17	296

Particulars	Quarter	FullYear
	30-Jun-21	31-Mar-21
CashFlowfromFinancingActivitiesC
(net)Proceedsfromborrowings	13	-252
paidborrowingsIntereston	-3	-19
ofdividendnon-controllingPaymentintereststo	-8	-47
ofprincipalofleaseliabilitiesPaymentportion	-5	-21
Others	-1	-7
TotalCashFlowfromCFinancingActivities	-5	-347
/(A+B+C)(decrease)increaseinCashandcashequivalentNet	13	-50
exchangefluctuationForeign	9	-5
Add:Cashandcashequivalentthebeginningat	282	337
Add:Bankoverdraft	20	11
Cashandcashequivalenttheendat	324	293

34

₹ in cr, unless mentioned otherwise

	Sourcing	Manufacturing	PDS VentureTech Investments	PDS Consolidated
Revenue	1,558up 65% vs Q1 LY	95up 85% vs Q1 LY	2Revenue captured inOther Income	1,626
EBIT(Including other income)	38up 9% vs Q1 LY	-11down 38% vs Q1 LY	41Rental, Treasury & Sale ofReal Estate	66
Gross Capital Employed(% of Total)	526(42%)	513(41%)	214(17%)	1,254
Net Capital Employed				789
ROCE	63%*	-ve*	20%*	33%

*based on gross capital employed | Consolidated ROCE based on net capital employed | Consolidated and Sourcing ROCE adjusted for dividend | PDS Consolidated numbers above are post eliminations

Other Updates Augmenting the board at PDS and material subsidiary

Mr Parth Gandhi Non-Executive Non-Independent Director PDS Multinational Fashions Limited

• Senior investment professional with significant experience in India for over two decades
• Previously, a Senior Partner and Managing Director at Apollo Global Managements India JV between ICICI and AION
• Responsible for establishing the strategic partnership with Apollo and in developing AION Investment strategy
• Serves on the International Advisory Board for Michigan State University, is a charter member of TiE Global (The Indus Entrepreneurs)
• An active member of The Explorers Club and ASSOCHAM
• In his previous roles, Mr. Gandhi was a Managing Director at Navigator Capital Advisors Limited and prior to that was a Consultant with Ernst and Young

Mr. Sunil Srivastav Director Techno Design HK Limited (Techno Group topline of $71mn in FY21 – c.9% of overall PDS topline)

• Previous Dy. Managing Director Corporate Accounts Group in State Bank of India
• Responsible for large corporate credit exposure including project and infrastructure financing for the bank
• Has overseen initiating the Bank's foray into digital delivery of financial products and services including wealth management and initiation of SBI's foray into new lines of businesses including identification and negotiation with global JV partners
• As CGM Kolkata at SBI, tasked with managing and growing operations of a network of 1,450 offices in Bengal, Sikkim and Andaman & Nicobar
• He was at the time responsible for a workforce of 18,000 employees across different business verticals
• Independent director across various listed entities

Peer Comparison

PDS Sourcing Business (94% of Revenue) Our closest global comparable

Particulars	Comparable 1Switzerland	Comparable 2UK	Comparable 3France
Business Model	Provides testing, inspection and certificationservices against relevant health, safety andregulatory standards	Provides assurance, testing, inspection andcertification services to identify and mitigaterisks in operations, supply and distributionchains and QMS	Provides testing, inspection and certificationservices to ensure products, assets andsystems conform to QHSE standards andRegulations
End user Industries	Consumer & Retail, Food, Oil & Gas,Manufacturing, Construction	Softlines& Hardlines, Electricals, Agriculture,Pharma	Consumer Products, Agriculture,Industrials, Building & Infra
Revenue	6,108	3,811	5,475
EBITDA %	24.7%	22.0%	16.0%
EBIT %	16.1%	15.6%	8.9%
ROCE	27.8%	36.4%	14.4%
Revenue Contribution ofConsumer Sector	18.8%	61.3%	12.7%
EBIT margin of ConsumerSector	25.0%	20.9%	11.2%
EV / EBITDA	17.5x	15.8x	18.3x

PDS Multinational Fashions Limited

Our closest domestic comparable platforms

₹ in cr, unless mentioned otherwise

Particulars –Q1 FY22	B2B apparelplatform	Comparable 1B2B consumerelectronics	Comparable 2B2B digitalmarketplace
Revenue	1,627	1,867	182
Revenue (Y-o-Y Growth %)	68.3%	261.2%	18.6%
Gross Profit (% of Revenue)	17.3%	7.4%	na
EBITDA (% of Revenue)	2.0%	2.6%	48.8%
PAT (% of Revenue)	2.9%	1.0%	48.4%
Net Capital Employed	813	812	1,658
Net Debt	38	54	-42
Net Debt/Equity	0.05x	0.07x	nm
Net Debt/EBITDA	0.15x	0.28x	nm
ROCE (net capital employed)	30.6%	16.4%	27.7%
ROE	26.4%	9.6%	20.7%
Net Working Capital Days	2	-	-7
Market Cap	3,270	25,190	21,709
EV / EBITDA	13.4x	131.8x	61.1x
P / E	24.9x	141.9x	71.8x

Note: 1. Market Cap is as on 30-Jul-2021; 2. Ratios of Peers are calculated on annualized basis; 3. na - not applicable; 4. nm - not meaningful Source: Stock Exchange Releases & other public information

Shareholders Return

PDS STOCK PRICE PERFORMANCE SINCE LISTING

What PDS has achieved since listing

PDS Share Price Evolution since Listing

*subject to T&C; **since approved by shareholders on July 30, 2021

Annexure

Consolidated Profit & Loss

US$ in mn, unless mentioned otherwise

	Q1		Growth
Particulars	FY22	FY21	(Y-o-Y)		FY21
fromIncomeOperations	2206	1274	73%		8370
COGS	1824	1061	72%		6986
ProfitGross	382	213	79%		1384
Margin(%)Gross	173%	167%	bps58		165%
EmployeeExpense	183	99	86%		558
offrom%IncomeOperations	83%	77%	bps56		67%
OtherExpenses	152	94	62%		517
offrom%OperationsIncome	9%6	4%7	bps-49		2%6
EBITDA	46	20	128%		310
(%)MarginEBITDA	21%	6%1	bps51		37%
Depreciation	23	20	14%		91
OtherIncome	66	22	200%		05
EBIT	89	22	306%		269
Margin(%)EBIT	40%	17%	bps232		32%
FinanceCost	06	14	-53%		35
Profitbeforeexceptionalitemsandtax	83	08	912%		234
Profit/(Loss)Add:ShareofofAssociates	01	-03			-05
ProfitBeforeTax	84	05	1500%		229
TaxExpenses	04	02	48%		29
ProfitAfterTax	80	03	2781%		200
(%)PATMargin	36%	02%	bps342		24%

Consolidated Balance Sheet

US$ in mn, unless mentioned otherwise

		Ason
Particulars	30-Jun-21	31-Mar-21	30-Jun-20
Non-CurrentAssets	76	81	77
CurrentAssets	254	240	229
Inventories	34	27	28
TradeReceivables	115	124	89
Cashandcashequivalents	44	40	45
OtherBankBalances	19	19	20
OtherCurrentAssets	42	29	47
TotalAssets	330	321	306
TotalEquity	101	98	80
LiabilitiesNon-Current	9	9	13
Borrowings	0	0	1
OtherLiabilitiesNon-Current	9	9	12
LiabilitiesCurrent	220	214	212
Borrowings	67	67	84
PayablesTrade	125	122	88
OtherLiabilitiesCurrent	27	25	40
TotalEquity&Liabilities	330	321	306

		Ason
Particulars	30-Jun-21	31-Mar-21	30-Jun-20
InventoryDays	16	14	16
DebtorDays	45	54	40
PayablesDays	59	64	48
NWCDays	2	5	8
TotalDebt	68	67	85
DebtNet	5	8	20

Consolidated Cash Flow

US$ in mn, unless mentioned otherwise

Particulars	Quarter	FullYear
	30-Jun-21	31-Mar-21
CashFlowfromOperatingActivitiesA
Profitbeforetax	83	232
andDepreciationamortizationexpense	23	93
FinanceCosts	06	35
saleofsubsidiaryGainon	-55	00
Others	-02	-05
(Increase)/DecreaseinNetCurrentAssets	27	164
TotalCashFlowfromOperatingActivitiesA	83	519
CashFlowfromInvestingActivitiesB
Purchaseof, plantandintangibleequipment&property	-18	-36
Purchaseofinvestments	-08	-117
Increase/(decrease)depositsin	-05	21
Changeotherfinancialinassets	-31	00
Proceedsfromsaleofinvestments	00	16
Others	01	03
TotalCashFlowfromInvestingActivitiesB	-60	-114
(A+B)TotalCashFlowfromandOperatingInvestingActivities	23	405

Particulars	Quarter	FullYear
	30-Jun-21	31-Mar-21
CashFlowfromCFinancingActivities
fromborrowings(net)Proceeds	81	-345
paidborrowingsIntereston	-05	-26
ofdividendnon-controllingPaymentintereststo	-11	-64
ofprincipalofleaseliabilitiesPaymentportion	-06	-29
Others	-02	-09
TotalCashFlowfromCFinancingActivities	-06	-474
/(A+B+C)(decrease)CashandcashequivalentincreaseinNet	17	-69
fluctuationForeignexchange	12	-06
Add:Cashandcashequivalentthebeginningat	380	462
Add:Bankoverdraft	27	15
Cashandcashequivalenttheendat	436	401

Financial Journey of the PDS Platform

Historical Financial Performance

Sales (₹cr)

Gross Margin (₹cr)

FY17 FY21

Free Cash Flow (FCF) (₹cr)

Cumulative FCF for 5 years: ₹502cr (US$ 68 mn) Cumulative PAT for 5 years: ₹356cr (US$ 50 mn)

Deep Dive into Sourcing & Manufacturing Business

Note: Sales is unadjusted for intercompany | *adjusted for dividend and EBIT includes Other Income| Segment-wise information is collated from the Annual Reports | Segment-wise Depreciation for FY17 is calculated using same Depreciation % of Segment Assets of FY18

Enhanced Key Leverage and Return Ratios

Net Debt/EBITDA(x)

Consistent expansion in EBITDA and reduction in Net Debt translated into significant improvement in leverage ratio

ROCE (Net) %*

Attributable to increase in EBIT with the business model continuing to be asset light

ROE %*

Topline growth, margin expansion and opex optimization has led to increase in PAT driving higher returns for shareholders

Standalone Profit & Loss Statement and Balance Sheet

		Q1	Growth
Particulars	FY22	FY21	(Y-o-Y)	FY21
fromOperationsIncome	136	54	151%	461
COGS	29	00		154
ProfitGross	107	54	97%	307
(%)MarginGross	5%78	0%100	bps-2149,	5%66
EmployeeExpense	72	31	129%	153
offrom%OperationsIncome	528%	580%	bps-518	332%
OtherExpenses	16	12	30%	70
offrom%IncomeOperations	114%	221%	bps-1064,	152%
EBITDA	19	11	80%	84
Margin(%)EBITDA	143%	200%	bps-567	182%
Depreciation	08	06	17%	27
OtherIncome	06	09	-35%	421
EBIT	18	14	30%	478
(%)MarginEBIT	133%	256%	bps229-1,	1035%
FinanceCost	03	04	-26%	16
ProfitBeforeTax	15	10	52%	462
TaxExpenses	04	03	39%	15
ProfitAfterTax	11	07	57%	447
(%)PATMargin	84%	134%	bps-500	970%

	As	on
Particulars	30-Jun-21	31-Mar-21
Non-CurrentAssets	144	138
CurrentAssets	48	55
TradeReceivables	7	5
Cashandcashequivalents	35	45
OtherBankBalances	0	0
OtherCurrentAssets	6	5
TotalAssets	192	193
TotalEquity	159	156
LiabilitiesNon-Current	8	8
Borrowings	1	2
OtherLiabilitiesNon-Current	7	6
LiabilitiesCurrent	25	30
Borrowings	7	6
TradePayables	4	5
OtherLiabilitiesCurrent	14	18
Total&LiabilitiesEquity	192	193

Standalone Cash Flow Statement

Particulars	Quarter	FullYear
	30-Jun-21	31-Mar-21
CashFlowfromOperatingActivitiesA
Profitbeforetax	15	462
andDepreciationamortizationexpense	08	27
FinanceCosts	03	16
Dividendincome	-05	-405
Employeesharebasedpayments	19	00
OtherAdjustments	-03	-08
(Increase)/DecreaseinCurrentNetAssets	-71	-02
TotalCashFlowfromOperatingActivitiesA	-35	89
CashFlowfromBInvestingActivities
CapitalExpenditure(includingcapitaladvancesandproperty)investment	-63	-12
Dividendreceived	05	405
receivedInterest	01	02
TotalCashFlowfromInvestingActivitiesB	-57	431
(A+B)TotalCashFlowfromOperatingandInvestingActivities	-92	521

₹ in cr, unless mentioned otherwise
Particulars	Quarter	FullYear
	30-Jun-21	31-Mar-21
CashFlowfromCFinancingActivities
(net)Proceedsfromborrowings	-01	-72
paidborrowingsIntereston	-01	-16
ofprincipalofleaseliabilitiesPaymentpayment	-01	-03
paidleaseliabilitiesIntereston	-01	-01
TotalCashFlowfromFinancingActivitiesC	-05	-92
/(A+B+C)(decrease)CashandcashequivalentincreaseinNet	-97	429
Add:Cashandcashequivalentthebeginningat	452	23
Cashandcashequivalenttheendat	355	452

Together we're building a better, more sustainable supply chain

Abhishekh Kanoi

For Further Information, please contact Group General Counsel & Company Secretary abhishekh.k@pdsmultinational.com

Reenah Joseph

Head Corporate Finance & Investor Relations reenah@pdsmultinational.com

PDS Multinational Fashions Limited No. 758 & 759, 2nd Floor, 19th Main, Sector-2, HSR Layout, Bangalore-560102, Karnataka, India CIN: L18101KA2011PLC094125 Tel.: 080-67653000 Email: investors@pdsmultinational.com