Polycab India Limited — Investor Presentation 2020

Oct 24, 2020

POLYCAB INDIA LIMITED

(formerly known as Polycab Wires Limited) Polycab House, 771 Mogul Lane, Mahim (W), Mumbai - 400016 CIN: L31300q1996PLC114183 Tel : +91 22 2432 7070-74 Fax : +91 22 2432 7075 Email: shares©polvcab.com Website: www. polvcab.com

Date: 24th October 2020

To Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Dalai Street Mumbai — 400 001

To Listing Department National Stock Exchange of India Limited C-1, G-Block, Bandra-Kuria Complex Bandra (E), Mumbai — 400 051

Scrip Code: 542652 Scrip Symbol: Polycab ISIN:- INE455K01017

Dear Sir / Madam

Sub: Corporate Presentation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015

In accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Corporate presentation on the unaudited financial results of the Company for the quarter and half year ended 30th September 2020.

Kindly take the same on your record.

Thanking you

Yours Faithfully

For Polycab India Limited

Sai Subramaniam Narayana Company Secretary and Compliance Officer Membership No.: F5221 Address: Polycab House, 771, Mogul Lane Mahim (West), Mumbai - 400 016

Registered Office: Unit No.4, Plot No.105, Halo! Vadodara Road, Village Nurpura, Taluka Halol, Panchmahal, Gujarat-389350 Tel : 2676- 227600 / 227700

Corporate Presentation

24 October 2020

Content

04

06

Company Overview

Leadership in Wires & Cables

03 Fast growing FMEG Business

Strengthening Brand Recognition

05 Strong Manufacturing & R&D capabilities

Robust Financials

Company Overview

Polycab: A Snapshot

Market leader in Wires and Cables1

12 - 13% Overall Market Share2

3,650+ Dealers & Distributors 1,37,000+ Retail Outlets

Fast Growing FMEG Brand

5-year CAGR at ~47%

Manufacturing Footprint

25 Facilities, 7 locations Strong backward integration

Strong Management Bandwidth

Blend of Entrepreneurial and highly experienced professional management

Proven Track Record

5 year CAGR Revenue 13% EBITDA4 21%, PAT5 37%

Note: FMEG: Fast Moving Electrical Goods; (1) In India, In terms of segment revenue; (2) As of March 31, 2020; (3) EBITDA - Earnings before Interest, Tax, Depreciation & Amortization excludes other Income; (4) PAT – Profit after tax

Our Journey

Increase in Consumer Spending, Infrastructure Growth and Industrial Investments to Drive Electricals Industry

Consumer Spend

• Metropolitan cities in India to increase from 46 in 2011 to 68 in 20301
• Working-age population to grow ~1.2x times in the period 2015-2030
• Increasing propensity to Spend, demand for improved products and preference of Indian brands
• Per Capita Income CAGR of c.10% over last 5 years
• Developed Rural, Urbanization and Nuclearization of families

Infrastructure Development

• Government announced expenditure of ~ INR 111 lakh crore in infrastructure sector over next 5 years, as a part of National Infrastructure Pipeline (NIP),
  • Energy, railways, urban and infrastructure to comprise ~72% of the expenditure
• Total Energy capacity expected to be 583 GW by 2025 from current 356 GW
• Housing for All by 2022 targeting 31mn households in the urban and rural areas – PMAY
• 100% electrification of existing railway network, mass rapid transit system and availability of public charging infrastructure
• 100% population coverage for telecom and high-quality broadband services and laying optical fiber cables across the nation under Bharat Net project

Industrial Growth

• Indian Electrical Equipment Industry plans to make India the "country of choice" for production of electrical equipment
• Indigenous manufacturing, self reliant India
• Cut in corporate tax rate to promote growth and investments
• Reforms and initiatives under Aatmanirbhar Bharat Abhiyaan to support Indian economy:
  • MSME funding, MGNREGS allocation, Agriculture reforms to boost income
  • Liquidity Injection to revive DISCOMs and overall economy. Power Tariff reforms
  • No foreign participation in < Rs 200cr Government tenders, Defence import ban.
  • Affordable housing push through Credit Linked Subsidy Scheme. Industrial infrastructure upgrade scheme

Sources: 1. National Infrastructure Pipeline Task Force Report 2020, 2. Pradhan Mantri Awas Yojana (Urban) Mission, 3. Announcements by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman

Polycab India Limited | Corporate Presentation 7

Key Management Initiatives to create value

Leadership in Wires and Cables

Market leader in Wires & Cables with a diverse portfolio

Polycab's dominant position in Wires and Cables industry to capture attractive market size

Note: (1) Industry estimates, Polycab estimates; (2) Revenue in INR billion; No adjustment for Inter segment revenue

Fast growing FMEG Business

FMEG : Expanding presence in 'Electricals' ecosystem

FMEG continues to become a sizeable part of the business - growing at 47% CAGR in past 5 years

Forayed in FY14 ...

• Diversified portfolio with focus on the upcoming industry trends
• Inhouse Manufacturing
• Pan India Distribution
• Present in Fans, Lighting Luminaires, Switches, Switchgears, Water heaters, Pipes, Conduits, Agro pumps, Solar etc.

… leveraging synergies

• Common raw materials higher negotiating power
• Manufacturing know how
• Strong brand goodwill in electricals space
• Economies of scale Cost-savings in transportation & distribution
• Cross-sell opportunities to a larger customer base

Polycab India Limited | Corporate Presentation 13

High Growth Opportunity in the Indian FMEG Industry

Macro drivers include evolving consumer aspirations, increasing awareness, rising income, rural electrification, urbanisation, digital connectivity

Polycab India Limited | Corporate Presentation 14

Polycab Experience Centres: Expanding in 'Electricals' ecosystem

• Strategic showcase enabling consumers and trade constituents to experience and choose from a wide range of quality products
• At iconic electric markets hub which is also an important feeder market to western and southern India
• Deepens connect with direct customers in the FMEG market as well as retailers from upcountry
• Aiming to expand such experimental stores across key cities
• Currently in Mumbai, Pune, Trivandrum and Visakhapatnam

Strengthening Brand Recognition

Strong Brand Recognition in the Electricals Industry..

From B2B to B2C Our Brand Journey

'Connection Zindagi Ka' was a hit with customers- the impactful narrative with their minds and hearts

… and strengthening it further using multi pronged approach

Pan India distribution network to support diverse customer base and product categories

By Product

By Geography

Notes: The above charts represents split of authorised dealers and distributors

Catering to marquee customers

Total Revenue Contribution in FY20

Revenue from outside India (% of total revenue)

Note: Companies served in past and present, directly or indirectly through authorised dealer/ distributors

Strategic initiatives to drive sustainable growth over long term

Strong Manufacturing & R&D capabilities

Inhouse Manufacturing with a high degree of backward integration and Automation…

Multi-location manufacturing (Products1; Annual capacity)

Halol

Fan Manufacturing Unit

Braiding Machines Cable CCV Line

1. Figures are absolute numbers where no units are indicated as of 31st March, 2020;

Polycab India Limited | Corporate Presentation 23

…Strong R&D and innovation capabilities with quality assurance

Investments in in-house R&D capabilities with strong focus on backward integration…

• NABL ISO 17025 certified R&D centre to support own manufacturing
• Over 100 engineers and technicians
• Centre of excellence for R&D on polymers
• Bought out Ryker further strengthening backward integration of operations and improve quality of its key input i.e. Copper
• Ryker Plant copper analysis center for both incoming and out -going raw materials
• Existing facilities for key raw materials with continuously improving R&D capabilities to capitalize on industry trends
• Environmentally friendly power cables, rubber (elastomeric) cables and electron-beam irradiated cables

Green Wire

Our ecological initiative

Launched Green Wire in 2017 an energy efficient and environment-friendly product that contributes to India's 'Go Green' mission

Supported by quality & reliability initiatives…

Robust Financials

Proven track record of financial performance

Delivering steady growth + profitability

9,504

11,276

Notes: (1) Numbers on consolidated basis (2) Financials for FY16-FY20 have been prepared using IND AS (3) Revenue: Revenue from operations (4) EBITDA excludes Other Income (5) CAGR - five years

Proven track record of financial performance

Net Cash Position (INR mn) -7,091 -7,906 -7,897 442 1,642 FY16 FY17 FY18 FY19 FY20

Improving returns and surplus cash to fuel future growth

Growth Funded by Internal Accruals

Invested in technology and built capacities for future

Notes: (1)Financials for FY16-FY20 have been prepared using IND AS (2) ROCE (Return on Capital Employed) is (Profit before tax plus finance cost) divided by closing value of (non-current borrowings plus current borrowings plus current maturities of non-current borrowings plus total equity including non-controlling interest), ROCE post tax uses effective tax rate (3) ROE (Return on Equity) is Profit for the year divided by closing value of equity including non-controlling interests (4) Debt / Equity: Total debt / equity including non-controlling interests (5) Net Cash Position: Cash + Bank balances + Investments - Debt

Polycab India Limited | Corporate Presentation 27

Consolidated Profit and Loss Statement

Particulars (INR mn)	FY 2020	%	FY 2019	%	FY 2018	%
Revenue from Operation	88,300	100.0%	79,856	100.0%	67,831	28100.0%
Cost of Goods sold	63,686	72.1%	59,660	74.7%	52,053	76.7%
Contribution (A)	24,614	27.9%	20,196	25.3%	15,778	23.3%
Employee cost	3,657	4.1%	3,002	3.8%	2,593	3.8%
Other Operating Expenses	9,606	10.9%	7,666	9.6%	5,768	8.5%
Total Operating Expenses (B)	13,263	15.0%	10,668	13.4%	8,361	12.3%
Share of profit/(loss) of JVs (Net of tax) (C)	-74	-0.1%	-23	0.0%	1	0.0%
EBITDA (A) -(B) + (C)	11,276	12.8%	9,505	11.9%	7,418	10.9%
Other Income	928	1.1%	638	0.8%	516	0.8%
Depreciation	1,609	1.8%	1,414	1.8%	1,330	2.0%
Finance Cost	495	0.6%	1,167	1.5%	937	1.4%
PBT	10,100	11.4%	7,561	9.5%	5,667	8.4%
Income Tax	2,444	2.8%	2,558	3.2%	2,082	3.1%
PAT	7,656	8.7%	5,003	6.3%	3,585	5.3%

Consolidated Balance Sheet

Particulars (INR mn)	FY 2020	FY 2019	FY 2018
Assets
Non-Current Assets
Fixed Assets	16,632	14,686	13,331
Other Non-current Assets	2,485	2,355	1,891
Total Non-current Assets	19,117	17,041	15,222
CurrentAssets
Inventories	19,250	19,958	13,657
Investments	400	0	0
Trade Receivables	14,336	13,343	12,908
Cash and Bank Balances	2813	3166	106
Others -Current Assets	3,700	2,774	2,588
TotalCurrentAssets	40,499	39,242	29,259
Total Assets	59,616	56,283	44,481

Particulars (INR mn)	FY 2020	FY 2019	FY 2018
Equity & Liabilities			29
Shareholder's Funds
Share Capital	1,489	1,412	1,412
Reserves and Surplus	36,875	27,057	22,064
Total Shareholder's Funds	38,364	28,470	23,476
Minority Interest	150	84	40
Non-currentLiabilities
Borrowings	107	889	1,589
Others -Non-current Liabilities	904	650	831
Total Non-current Liabilities	1,011	1,540	2,420
CurrentLiabilities
Short-term Borrowings	1,115	1,031	5,687
Trade Payables	13,537	15,202	9,221
Others -Current Liabilities	5,440	9,957	3,636
Total Current Liabilities	20,091	26,189	18,544
Total Equity and Liabilities	59,616	56,283	44,481

Consolidated Annual Cash Flow Statement

Particulars (INR mn)	FY 2020	FY 2019	FY 2018
Net Cash Flow from Operating Activities	2,446	12,300	3,624
Net cash flow from/(used in) investing activities	-2,622	-4,077	-1,878
Net cash flow from/(used in) financing activities	107	-6,514	-1,898
Net Increase / (Decrease in cash and cash equivalents)	-69	1,708	-152

2Q FY21 Key Highlights

Top-line (Revenue)	Operating (EBITDA)	Profitability (PAT)	Net Cash Position
Q2FY21:21137mn,	Q2FY21:3122mn,	Q2FY21:2216mn,	Q2FY21:6276mn,
6%Y-o-Y-	16%Y-o-Y	14%Y-o-Y	82%Y-o-Y
116%Q-o-Q	454%Q-o-Q	88%Q-o-Q	205%Q-o-Q
1HFY21:30903mn,	1HFY21:3685mn,	1HFY21:3391mn,
26%Y-o-Y-	25%Y-o-Y-	3%Y-o-Y

Notes: (1) Numbers on consolidated basis (2) Revenue: Revenue from operations (3) PAT: Profit After Tax on reported basis and includes exceptional items as explained on slide 11 (4) EBITDA excludes other Income

Polycab India Limited | Corporate Presentation 31

Shareholding Pattern

Notes: As on 30 September 2020. Promoter holding dilution in % terms is on account of issuance of new shares under ESOP scheme.

Leadership Team - Board of Directors

Inder T Jaisinghani Chairman and Managing Director

Ajay T Jaisinghani Whole-Time Director

Ramesh T Jaisinghani Whole-Time Director

Whole-Time Director Qualified Chartered Accountant & has previously served major leadership role in Vedanta Ltd, Hindustan Zinc Ltd.

RS Sharma Independent Director

Holds a degree from ICWA Previously served as Chairman and MD at ONGC Limited

TP Ostwal Independent Director

Practicing Chartered Accountant and is a senior partner with T.P Ostwal and Associates LLP

Pradeep Poddar Independent Director

IIM-Ahemdabad Alumni Currently on the Boards of Monsanto India Limited, Welspun India Limited, and Uflex Limited.

Hiroo Mirchandani Independent Director

Business career of 30+ years. A Chevening Gurukul Scholar from the London School of Economics. Held leadership roles at Dabur, World Gold Council & BPL Telecom

Leadership Team - Key Management

• Blend of Entrepreneurial and Professional Management
• Professionals with Prior Experience in Vedanta, Tata Group, Unilever, Havells, Bajaj, SRBC & Co, Crompton, etc.
• Vision to Execute Strategies in a Dynamic Environment
• Extensive Relationships and Deep Business Understanding

Bharat A Jaisinghani Director – FMEGBusiness (Nonboard member)

Sanjeev Chhabra Chief Treasury Officer

Nikhil R Jaisinghani Director – LDC Business (Non-board member)

Anurag Agarwal Executive President

Anil Hariani Director – Commodities (Non-board member)

Vivek Khanna Executive President

Shashi Amin Executive President & CBO

Manoj Verma Executive President & Chief Operating Officer (CE)

Suresh Kumar CHRO & Executive President (Strategy and HR)

Kunal I Jaisinghani Head – Agri Products

Anil Shipley Executive President and Chief Supply Chain Officer

Sandeep Bhargava Chief Procurement Officer

Sai Subramaniam Narayana Company Secretary and Compliance Officer

Gandharv Tongia Chief Financial Officer

Diwaker Bharadwaj President (Packaging)

Ananthanarayanan President (Strategic Marketing)

Our Social Responsibility – A Philosophy of Empathetic Care

Community Infrastructure Education Health

Promoting efficient farming through sessions on soil testing & model farms

Women oriented skill training & creation of self help groups

Deeping of water reservoirs under Gujarat Government initiated "Sujalam Sufalam" programme in villages of Asoj, Bodidra & Waghodia were deepened

Construction of toilets and providing clean drinking water in Gadhmahuda, Chachariya & Govindpuri village

Improvements in school infrastructure in Chachariya & Baska villages

Leadership Enrichment for Adolescence through Assessment & Development (LEAAD) programme organised, students exposed to leadership building qualities

Study Science, Technology, Engineering & Mathematics (STEM) Laboratory set up for students to learn practical aspects of education

Mobile Medical Unit offering services like OPD, medicines, health talks, camps & counselling in interiors. On an average 90 to 100 patients/day take advantages of these services

Jointly conducted breast tumour detection camp with Shree Halol Stree Samaj

Health camps in Mota Sandhiya, and Jalariya villages

Enhancing shareholder value

Market Cap in USD calculated using USD INR spot rate of 73.6

Safe Harbour

This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as 'expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should' and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise, which are forward looking statements. These forward looking statements are based on certain expectations, assumptions, anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key customer relationship and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments, political instability, change in international copper, aluminum, oil prices and input costs and new or changed priorities of the trade. The Company, therefore, cannot guarantee that the forward-looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time on the basis of subsequent developments and events. The Company does not undertake any obligation to update forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.

Thank you

Polycab India Limited

CIN: L31300GJ1996PLC114183

Contact us

For investor relations: investor.relations@polycab.com For queries on shares & investor grievance: shares@polycab.com Website: www.polycab.com