Salzer Electronics Ltd. — Interim / Quarterly Report 2023

Feb 10, 2023

==> picture [137 x 31] intentionally omitted <==

Salzer Electronics Limited

Result Update Presentation Q3 & 9M FY23

1

Disclaimer

==> picture [137 x 31] intentionally omitted <==

This presentation has been prepared by Salzer Electronics Limited (the “Company”) solely for information purposes and does 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 what so ever. 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.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

2

==> picture [960 x 286] intentionally omitted <==

Table of Content

==> picture [210 x 57] intentionally omitted <==

==> picture [211 x 57] intentionally omitted <==

==> picture [206 x 57] intentionally omitted <==

==> picture [150 x 57] intentionally omitted <==

3

==> picture [137 x 31] intentionally omitted <==

Financial Highlights

4

Joint Managing Director’s Message

==> picture [137 x 31] intentionally omitted <==

Commenting on this, Mr. Rajesh Doraiswamy, Joint Managing Director, Salzer Electronics Ltd said:

“Our third quarter performance has been in line with our expectations. Despite, a tepid demand, we witnessed a good traction in our Industrial switchgear and Building products. I am happy to share that we continue to see a substantially higher demand in many key products from these two business divisions. To cater to this strong demand, we recently set up a new manufacturing rented facility strategically located in Hosur, Tamil Nadu to manufacture high demand products like Wire Harnesses and Toroidal Transformers.

During the Third quarter and Nine Months year ended of the financial year, we registered a revenue of Rs. 239.95 crores with EBITDA (excluding other income) and PAT of Rs. 23.74 crore and Rs. 9.67 crore, respectively.

Our raw material prices have begun to stabilize and we are seeing the benefits of our price hikes in the form of better margins year on year as well as quarter on quarter. We also expect to reduce raw material consumption in coming quarters.

Going ahead, we expect to maintain our growth trajectory combined with strong product offerings and brand position in the market. Based on the domestic and export outlook, we are optimistic on our overall business performance.

I thank the entire team at Salzer Electronics for their untiring efforts and all our stakeholders for their continued support and faith in our Company.”

Salzer Electronics Limited I Result Update Presentation Q2 & H1 FY23

5

Key Standalone Financial Highlights – Quarterly

==> picture [137 x 31] intentionally omitted <==

Revenue, EBITDA (excluding other income), PAT (Rs. Crore)

==> picture [838 x 315] intentionally omitted <==

----- Start of picture text -----

300 Revenue EBITDA PAT 40.0
35.0
245.0
240.0
250 233.1
228.0
211.8 30.0
194.8
189.7
200 24.5
23.7
25.0
149.0 19.6
150 18.4 20.0
17.7
16.2
14.8
12.9 15.0
100
9.7
8.8 9.0
10.0
7.0 7.5 7.3
50
4.0 3.8
5.0
0 0.0
Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
----- End of picture text -----

6

Q3 FY23 Standalone Financial Highlights

==> picture [137 x 31] intentionally omitted <==

Rs. in Crore	Standalone	Standalone	Standalone	Standalone	Consolidated
	Q3 FY23	Q3 FY22	Y-o-Y %	Q2 FY23	Q3 FY23*
Net Revenue	239.95	211.83	13.27%	244.96	245.60
Raw Materials	183.82	167.62		189.93	185.68
Employee Cost	8.59	7.36		8.69	9.69
Other Expenses	23.79	19.17		21.86	25.32
Total Expenditure	216.20	194.15		220.48	220.70
EBITDA(Excluding other Income)	23.74	17.68	34.30%	24.48	24.90
EBIDTA Margin(%)	9.90%	8.35%	155 bps	9.99%	10.14%
Other Income	0.48	0.88		(0.37)	0.62
Depreciation	4.07	3.93		4.01	4.16
Interest / Finance Cost	6.66	4.97		6.13	6.67
Exceptional Item (Gain) / Loss	0.00	0.00		0.00	0.02
Profit Before Tax	13.48	9.66		13.97	14.71
Tax	3.81	2.41		5.02	4.19
Profit After Tax	9.67	7.25	33.49%	8.95	10.52
Profit After Tax Margin(%)	4.03%	3.42%	61 bps	3.66%	4.28%
Basic EPS(Rs.)	6.05	4.53	33.55%	5.60	6.45

• Increase in Revenue – on account of higher demand for Switchgear as well as Building products

 Growth driven by high demand products -Toroidal Transformers, Three phase Transformers, LAN Cables, Sensors & MCBs

Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

7

Q3 FY23 Revenue Breakup – Business Verticals

==> picture [137 x 31] intentionally omitted <==

Q3 FY22

Q3 FY23

==> picture [312 x 252] intentionally omitted <==

----- Start of picture text -----

Industrial Switchgear,
49.6%
Wire & Cable,
Building Segment, 43.6%
6.8%
----- End of picture text -----

==> picture [326 x 247] intentionally omitted <==

----- Start of picture text -----

Industrial Switchgear,
57.9%
Building Segment, Wire & Cable,
7.5% 34.6%
----- End of picture text -----

• Industrial Switchgear – 57.86% of net revenues

• Wires & Cables – 34.60% of net revenues

• Building Electrical Products – 7.54% of net revenues

• Energy Management – No tenders issued by Government during this period

8

Q3 FY23 Revenue Breakup – Geographical

==> picture [137 x 31] intentionally omitted <==

Q3 FY22

Q3 FY23

==> picture [314 x 286] intentionally omitted <==

----- Start of picture text -----

Asia (Exclu.
India), 7.9% Middle East, 0.9%
North & South
America, 5.4%
Europe, 7.9%,
India, 77.9%
----- End of picture text -----

==> picture [348 x 274] intentionally omitted <==

----- Start of picture text -----

Asia (Exclu.
Middle East; 1.4%
India), 13.4%
North & South
America, 6.8%
Europe, 6.8%
India, 71.7%
----- End of picture text -----

• Contribution from Exports at 28.34%

• Export revenue grew by 45.6% YoY in Q3 FY23 - driven by higher exports to Middle East Africa, North & South America

9

9M FY23 Standalone Financial Highlights

==> picture [137 x 31] intentionally omitted <==

Rs. in Crore	9M FY23	9M FY22	Y-o-Y %	9M FY23 (Consl)*
Net Revenue	717.96	555.61	29.22%	734.36
Raw Material Expenses	561.71	436.24		566.79
Employee Expenses	25.25	20.80		28.59
Other Expenses	63.17	47.68		67.75
Total Expenditure	650.12	504.71		663.13
EBITDA(Excluding other Income)	67.84	50.90	33.30%	71.23
EBITDA Margin(%)	9.45%	9.16%	29 bps	9.70%
Other Income	1.18	1.83		1.37
Depreciation	12.03	11.95		12.27
Interest / Finance Cost	18.40	14.79		18.43
Exceptional Item(Gain)/ Loss	0.00	0.00		0.02
PBT	38.59	25.99		41.91
Tax	11.18	7.33		12.14
PAT	27.41	18.66	46.90%	29.77
PAT Margin(%)	3.82%	3.36%	46 bps	4.05%
Basic EPS(Rs.)	17.15	11.67	46.96%	18.22

• Increase in Revenue – on account of higher demand for Switchgear as well as Building products

• Contribution from exports was 24.88% in 9M FY23

10

Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

9M FY23 Revenue Breakup – Business Verticals

==> picture [137 x 31] intentionally omitted <==

9M FY22

9M FY23

==> picture [321 x 258] intentionally omitted <==

----- Start of picture text -----

Industrial
Switchgear, 51.1%
Building
Wire &
Segment, 6.2%
Cable, 42.7%
----- End of picture text -----

==> picture [326 x 259] intentionally omitted <==

----- Start of picture text -----

Industrial
Switchgear, 54.7%
Building
Wire &
Segment, 7.8%
Cable, 37.5%
----- End of picture text -----

• Industrial Switchgear – 54.7% of net revenues

• Wires & Cables – 37.5% of net revenues

• Building Electrical Products – 7.8% of net revenues

• Energy Management – No tenders issued by the Government during this period

11

9M FY23 Revenue Breakup – Geographical

9M FY22

==> picture [314 x 270] intentionally omitted <==

----- Start of picture text -----

Asia (Exclu. Middle East,
India), 10.6% 1.1%
North & South
America, 5.4%
Europe,
7.4%
India, 75.5%
----- End of picture text -----

9M FY23

==> picture [203 x 149] intentionally omitted <==

----- Start of picture text -----

Middle East,
Asia (Exclu.
1.2%
India), 10.9%
North & South
America, 5.8%
Europe,
7.1%
----- End of picture text -----

==> picture [137 x 31] intentionally omitted <==

==> picture [62 x 10] intentionally omitted <==

----- Start of picture text -----

India, 75.1%
----- End of picture text -----

 Contribution from exports was 24.88% in 9M FY23

12

Key Standalone Financial Highlights – Annual

==> picture [137 x 31] intentionally omitted <==

Revenue (Rs. Crore)

EBITDA (Rs. Crore) / Margins (%)

==> picture [376 x 134] intentionally omitted <==

----- Start of picture text -----

783.6
605.6
559.8 566.9
442.8
FY18 FY19 FY20 FY21 FY22
----- End of picture text -----

==> picture [365 x 155] intentionally omitted <==

----- Start of picture text -----

12.0% 11.5% 10.2%
11.4%
8.1%
63.6 65.2 61.8 63.8
53.3
FY18 FY19 FY20 FY21 FY22
----- End of picture text -----

Net Profit (Rs. Crore)

Networth as on 31st March (Rs. Crore)

==> picture [356 x 158] intentionally omitted <==

----- Start of picture text -----

4.5% 4.7%
4.3%
3.4%
2.9%
26.4
24.0
22.5
20.0 20.7
FY18 FY19 FY20 FY21 FY22
----- End of picture text -----

==> picture [384 x 154] intentionally omitted <==

----- Start of picture text -----

351.47
331.3
309.4
287.0
270.6
FY18 FY19 FY20 FY21 FY22
----- End of picture text -----

13

Standalone Balance Sheet Highlights

Rs. Crore	As on 30th Sept’ 22	As on 31st Mar’ 22	As on 30th Sept’ 22*
Shareholder’s Funds	366.78	351.47	358.38
Share capital	15.98	15.98	15.98
Other Equity	350.80	335.48	337.91
Non Controlling Interest	0.00	0.00	4.49
Non-current liabilities	30.85	32.01	32.42
Financial Liabilities
Borrowing	10.09	12.41	12.41
Provisions	0.00	0.00	0.15
Deferred Tax Liabilities (Net)	20.76	19.61	19.62
Other Non-Current Liabilities	0.00	0.00	0.25
Current liabilities	377.48	358.31	361.54
Financial Liabilities
Borrowing	233.74	235.40	235.40
Trade Payable	92.38	73.77	76.22
Others	4.91	4.86	4.90
Other Current Liabilities	42.59	42.59	43.17
Provisions	1.93	1.70	1.83
Current tax liability (Net)	1.93	0.00	0.00
Total Equities & Liabilities	775.11	741.79	752.33

==> picture [137 x 31] intentionally omitted <==

Rs. Crore	As on 30th Sept’ 22	As on 31st Mar’ 22	As on 30th Sept’ 22*
Non-current assets	264.20	261.15	254.50
Property, Plant & Equipment	214.14	210.57	213.37
Capital WIP	1.68	0.78	0.78
Investments Property	0.01	0.01	0.01
Intangible Assets	3.92	3.86	10.80
FA - Investments	17.55	17.45	0.85
FA - Trade Receivables	12.35	11.63	11.63
FA - Others	10.88	11.83	11.86
Other Non Current Assets	3.68	5.02	5.20
Current assets	510.91	480.64	497.83
Inventories	241.87	223.70	226.98
Financial Assets
Investments	3.67	3.10	3.10
Trade receivables	214.07	208.52	218.39
Cash & Cash equivalent	4.17	1.28	1.90
Bank Balance other than above	7.10	6.76	9.84
Loans	10.63	10.58	10.58
Other	0.39	0.35	0.38
Other Current Assets	29.01	26.35	26.66
Total Assets	775.11	741.79	752.33

14

*Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

==> picture [137 x 31] intentionally omitted <==

Company Overview

15

About Us

==> picture [137 x 31] intentionally omitted <==

==> picture [437 x 433] intentionally omitted <==

----- Start of picture text -----





----- End of picture text -----

Leading player offering total and customized electrical solutions

Wide Distribution network – local and global

• Presence in Industrial Switchgears, Wires & Cables and Energy management business

• Own distribution network – local and global – export to 50 countries

• Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share

• Access to L&T’s local network through more than 350 distributors

Extensive Product portfolio across verticals with In-house manufacturing facilities

Strong focus on product development and innovation

• Registered Patent for Rotary Switches, five product patents in process

• Five manufacturing units located in Tamil Nadu

• More than 15 products catering to Industrial / Building Electrical / Automobile verticals

• Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031

16

From a Single Product Company…

Unit I (Coimbatore) – manufacture contactors, relays, panels, energy savers

Starting of long term association with L&T

1985

2001-06

Technical collaboration with Plitron for manufacture of Toroidal Transformers 1st Indian company to bring technology to India

Unit III - manufacture modular switches Started manufacturing of Wire & Cable for L&T

Established to manufacturer of CAM operated Rotary Switches

1991-95

==> picture [137 x 31] intentionally omitted <==

2017-23

Leading player offering total and Started commercial production of customized electrical solutions Three Phase Dry Type Transformers More than 15 different products Acquired Salzer Magnet Wires

2,000 employees 5 manufacturing units Foray into tailor made products and branding for large customers Specialized panels for OEMs

Upgrade in Credit Rating for longterm borrowing to ‘CRISIL A/Stable’ Acquired Kaycee Industries Ltd. Forays into EV Business through JVs with Kostad Steuerungsbau GmbH and EMarch LLP

2010-14

Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031 Receives patent for ‘Motor Protection Circuit Breaker With Increased Air Gap’

Set up new manufacturing rented facility strategically located in Hosur, Tamil Nadu – production to commence in March 2023

… to manufacturing multiple products across sectors

17

Professional Management

==> picture [137 x 31] intentionally omitted <==

R. Doraiswamy

Managing Director

Qualified Electrical Engineer and Technocrat Entrepreneur with over 4 decades of experience

Vast Experience in Foreign Collaboration & wide global contacts

M Laksminarayana

VP - Operations

B.E (Electrical) with over 2 decades of experience

Responsible for Production, Planning, Inventory Management, Maintenance & General Administration

D. Rajeshkumar

Joint Managing Director

Electrical Engineer, India; Postgraduate in Business Management, US

JMD and CEO of Company - responsible for driving the vision of Company

D. Govindaraj

Sr. Manager-Corp. Accounts & Projects

Masters in Commerce, DLL and DTL with over 3 decades of experience Responsible for project finance and corporate accounts

S. Baskarasubramanian

Director-Corporate Affairs & CS

Electrical Engineer, India; Postgraduate in Business Management, US

JMD and CEO of Company - responsible for driving the vision of Company

R Karunakaran

GM - PR & GST

BSc, Diploma in Marketing Management with more than 3 decades of experience Responsible for GST and Public Relations of Company

P. Sivakumar A

VP – Marketing Corporate

Bachelors in Engineering with over 3 decades of experience

Responsible for Sales & Marketing division

18

==> picture [137 x 31] intentionally omitted <==

Business Overview

19

Business Overview

Industrial Switch Gear Products

• Transformers

• Terminal Blocks

• Rotary Switches

• Isolators

• General Purpose relays

• Wiring Ducts

• MPCB’s

• Contactors & OLR’s

• Control Panels

• Wire Harness

Building Electrical Products

• Modular Switches

• Wires & Cables

• MCB’s

• Changeovers

==> picture [413 x 420] intentionally omitted <==

==> picture [137 x 31] intentionally omitted <==

Copper Products

• Wires & Cables

• Flexible Bus Bars

• Enamelled Wires

• Bunched Conductors

• Tinned Copper Wires

Energy Management products

• Energy Savers

• Street Light Controllers

20

Wide Product Suite- Customized for OEM’s

==> picture [137 x 31] intentionally omitted <==

CT’s Terminal Sockets

==> picture [105 x 94] intentionally omitted <==

==> picture [109 x 94] intentionally omitted <==

==> picture [108 x 94] intentionally omitted <==

==> picture [117 x 93] intentionally omitted <==

==> picture [105 x 96] intentionally omitted <==

==> picture [108 x 96] intentionally omitted <==

==> picture [108 x 96] intentionally omitted <==

==> picture [116 x 96] intentionally omitted <==

Coils / Inductors

==> picture [110 x 94] intentionally omitted <==

==> picture [110 x 94] intentionally omitted <==

==> picture [227 x 96] intentionally omitted <==

Panels

==> picture [116 x 196] intentionally omitted <==

==> picture [104 x 193] intentionally omitted <==

In-house manufacturing and R&D enables superior customization of products

21

Key Strengths

==> picture [137 x 31] intentionally omitted <==

In-house manufacturing facilities with process capabilities ensures better product development and customization

Well developed R&D enables continual product innovation

Amongst few players in India, to offer total & customized electrical solutions Wide product basket – 15 products developed in-house

Wide distribution network – international and domestic

Tie up with L&T – access to over 350 dealers in India; own network for modular switches with 50 stockist in 4 southern & western states

Direct network across 50 countries with 40 international distributors

Largest manufacturer and market leader in CAM operated rotary switches

Strong engineering capabilities backed by in-house manufacturing and R&D team

Strong customer relationships across globe

Preferred supplier to GE, Schneider and only approved supplier of Nuclear Power Corporation

Largest supplier of rotary and load break switches to Indian Railways

Technical collaboration with Plitron for Toroidal transformers – 1st Company to bring technology to India, Joint Venture with C3Controls for contactors and relays

Resulting in all products been international certified and universal acceptance

22

Five Manufacturing facilities...

UNIT I UNIT 2 UNIT 3 Toroidal Transformers Wiring Accessories Rotary Switch Contactors & Relays Isolators (Dis-connectors) Panel Assembly Terminals Lighting Energy Savers Wiring Ducts Automatic Meter Reading MPCB Three Phase Dry Type Wire Harness Transformers 3 PH Transformers

UNIT 4

==> picture [165 x 120] intentionally omitted <==

Wires & Cables

Flexible Bus Bars Bunched Conductors Tinned Wires

==> picture [137 x 31] intentionally omitted <==

UNIT 5

==> picture [165 x 117] intentionally omitted <==

Enamelled Copper Wires

Fine Enamelled Copper Wires Polyester Coated Winding wires

23

...With In-house process capabilities...

==> picture [137 x 31] intentionally omitted <==

==> picture [429 x 272] intentionally omitted <==

==> picture [442 x 272] intentionally omitted <==

• Full fledged Type testing laboratory

• Loads up to 500Amps

• Environmental test chamber for humidity test

• Salt spray test & all other basic tests as per UL Standards

• In-house tool room facility for manufacturing and servicing of Moulds and press tools

• CNC Wire Cut Machines and Spark erosion machines

• CNC Machining center, EDM Drilling

• Conventional machines

• Latest digital measuring equipment

• Inspected and certified by GE Tool Divisionca

More than 80% components made in-house

24

...And a strong R&D team

==> picture [137 x 31] intentionally omitted <==

R&D expenses (Rs crore)

 In-house R&D Center

• More than 35 engineers

• Recognized by Department of Science, Govt of India

==> picture [396 x 249] intentionally omitted <==

----- Start of picture text -----

12.00
10.37
9.07
8.50
7.75
4.27
2.50
FY16 FY17 FY18 FY19 FY20 FY21 FY22
----- End of picture text -----

• Patented Rotary switches

 Six patents in process

• Manual Single-Phase Starter with no voltage tripping, Energy Saver System for Street Lighting, Track Feed Battery Changer Over System, Heavy duty energy efficient automatic source change over, Training warning system and Modular Housing

• Received two patents for CAM operated rotary switch & Motor Protection Circuit Breaker’ for duration of 20 years, ending 2036

• 1[st] of its kind product in India

• Designed and manufactured Load Break Switches, Single Hole Mounting Switches, Halogen Free Cable Ducts, Flat Wire Ducts, Flexible Bus Bars etc

Continual focus on product innovation

25

Internationally certified

==> picture [110 x 73] intentionally omitted <==

==> picture [153 x 54] intentionally omitted <==

ISO 9001

ISO 14001

==> picture [105 x 92] intentionally omitted <==

==> picture [115 x 67] intentionally omitted <==

CB certification

RoHS

==> picture [99 x 57] intentionally omitted <==

CE Certification

==> picture [76 x 85] intentionally omitted <==

Intertek Semko approval

==> picture [144 x 55] intentionally omitted <==

ISO 18001

==> picture [130 x 73] intentionally omitted <==

CSA Certification

==> picture [137 x 31] intentionally omitted <==

==> picture [137 x 66] intentionally omitted <==

UL Certification

==> picture [80 x 107] intentionally omitted <==

... Across entire product portfolio

26

Blue Chip Customers

==> picture [72 x 49] intentionally omitted <==

==> picture [94 x 36] intentionally omitted <==

==> picture [80 x 26] intentionally omitted <==

==> picture [96 x 34] intentionally omitted <==

==> picture [83 x 54] intentionally omitted <==

==> picture [137 x 31] intentionally omitted <==

• Marketing Tie-up with L&T for Indian Market

• Largest supplier of rotary switches to Indian Railways

• Branding partner to various large OEM’s in India

==> picture [89 x 37] intentionally omitted <==

==> picture [96 x 29] intentionally omitted <==

==> picture [101 x 22] intentionally omitted <==

==> picture [106 x 40] intentionally omitted <==

==> picture [104 x 18] intentionally omitted <==

• Technical Tie-up with American Company C3Controls, to manufacture & market contactors & overload relays

==> picture [102 x 25] intentionally omitted <==

==> picture [52 x 62] intentionally omitted <==

==> picture [67 x 67] intentionally omitted <==

==> picture [75 x 50] intentionally omitted <==

==> picture [93 x 49] intentionally omitted <==

• Technical Tie-up with Trafomodern for Three Phase Transformers

• Preferred supplier to:

• Nuclear Power Corporation

==> picture [91 x 56] intentionally omitted <==

==> picture [98 x 37] intentionally omitted <==

==> picture [78 x 58] intentionally omitted <==

==> picture [87 x 42] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

• Schneider Electric

• GE Energy

27

==> picture [119 x 17] intentionally omitted <==

Wide Distribution Network

Direct network across 50 countries

International

• Direct network across 50 countries

• 23% of sales from exports (FY22)

• 40 international distributors

• Plans to expand in US, Africa and Middle east

Domestic

• Tie up with L&T – access to more than 350 dealers in India

• Direct network for Modular Switches – 50 stockists in 4 southern & western states

28

==> picture [137 x 31] intentionally omitted <==

Way Ahead

29

Way Ahead

Operational Excellence

Consistently executing business strategy and continued focus on improving operating costs by sourcing quality raw materials and efficient manpower

Venture into new project/ product development

Seek Technical alliances to develop new and technically

advanced products

Acquired Kaycee Industries for new product development, enter new ventures and leverage brand & distribution network

Formed JV’s with Kostad Steuerungsbau GmbH & EMarch LLP to enter EV market

02

01

==> picture [179 x 179] intentionally omitted <==

03

04

==> picture [137 x 31] intentionally omitted <==

Focus on margin improvement

Increase sales of high margin products – existing and new

Increase exports – fast growing markets of US, Africa and Middle East

Growth and expansion of existing product verticals

Constantly develop new products through inhouse R&D

Expand existing product portfolio to newer geographies

30

ESG Initiatives

==> picture [137 x 31] intentionally omitted <==

Committed towards a cleaner, greener and healthier environment

Optimise energy consumption

Towards this end Company has identified installation of rooftop solar panels Plan to recycle water as per environmentally friendly norms

Increasing green cover around all plants in and around the manufacturing facilities Partner in EV Ecosystem to manufacture parts of environmentally friendly transportation

M./s JDS Associates for statutory audit, M/s. Covai Management Services for internal audit and M/s. G. Vasudevan for Secretarial Audit

Five independent Directors out of 11 Members on the Board

Focus on Better compliances and best governance practices

Plan for gender diversification on the Board in due course

Continues to contribute towards skill development among the local population

Recruitment of rural youth for local sales operations

Contribution for women empowerment. Engaged around 50% women employees hailed from local rural areas who are breadwinners of their families

Spending under CSR Initiatives for health Care and education of rural populous particularly residing in the

local regions

31

==> picture [137 x 31] intentionally omitted <==

baskarasubramanian@salzergroup.com www.salzergroup.net Adfactorspr Pvt. Ltd. Ms. Savli Mangle savli.mangle@Adfactorspr.com Mr. Rupesh Rege Rupesh.rege@Adfactorspr.com www.adfactorspr.com

32