Sandhar Technologies Limited — Investor Presentation 2019

May 27, 2019

ARVIND JOSHI Digitally signed by ARVIND JOSHI Date: 2019.05.27 18:07:31 +05'30'

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SANDHAR TECHNOLOGIES LIMITED

Safe Harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sandhar Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do 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 whatsoever. 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 tire 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 forwardlooking 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.

Industry Performance

(Vol. in Mn)

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+6.5% Indian Auto Sector +6.3%
2 Wheelers
29.02
30.90
23.02
24.46
23.02
24.46
16.47
15.10
7.10 7.03
4.04
4.05 0.95 1.02 0.90 0.88
1.11 1.27
Total 2 W Scooters Motor cycles Mopeds
Total Vol. PVs CVs 3 W 2 W
+0.4% Passenger Vehicles +16.1% CVs
4.05 4.04 1.11
0.954
2.73 2.75 0.67
0.57
0.44
0.38
1.10 1.09
0.22 0.19
Total CV M&HCVs LCVs
Total PV Passenger Cars Utility Vehicles Vans FY 18-19 FY 17-18
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4.05 4.04
2.73 2.75
1.10 1.09
0.22 0.19
Total PV Passenger Cars Utility Vehicles Vans
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Audited Financial Snapshot

(fig. in Rs. Crs)

FY'19 (A) FY'18 (A) GR Vs LY % Consolidated	FY'19 (A) FY'18 (A) GR Vs LY % Consolidated	FY'19 (A) FY'18 (A) GR Vs LY % Consolidated	Standalone	Standalone
	FY'19 (A) FY'18 (A)	GR Vs LY %	FY'19 (A) FY'18 (A)	GR Vs LY %
Revenue	2,342 1,951	20.0%	2,043 1,689	21.0%
EBITDA	258 213	21.0%	228 191	19.2%
EBITDA %	11.0% 10.9%		11.1% 11.3%
EBT ¢&&)	145 97	49.9%	142 98	45.3%
EBT %	6.2% 5.0%		6.9% 5.8%
PAT	96 66	45.1%	95 67	41.0%
PAT %	4.1% 3.4%		4.6% 4.0%
EPS(Rs/Sh)	15.9 12.8	24.4%	15.8 13.2	19.9%
ROCE ( Pre Tax)	16.9% 15.0% 14.2% 14.6%
				4

Balance Sheet & Cash Flow

(fig in Rs. Crs)

FY-19 FY-18 FY-19 FY-18 Application of Funds Non-current assets Net Fixed assets 780.8 749.5 617.5 597.0 Non-current investments 30.7 18.6 67.4 49.3 Other non-current assets 19.3 23.7 17.5 21.7 Total Non-Current Assets 830.8 791.8 702.4 668.1 Current assets 630.7 792.6 477.3 654.0 Total Application of Funds 1,461.5 1,584.4 1,179.7 1,322.1 Sources of Funds Share capital 60.2 60.2 60.2 60.2 Reserves and surplus 659.4 574.1 648.5 563.4 Shareholders' Funds 719.6 634.2 708.7 623.6 Minority Interest 3.5 2.8 - - Long Term Secured Loans 8.4 12.8 0.6 1.0 Other Non-current liabilities 23.9 20.4 11.7 5.7 Total Long Term liabilities 32.4 33.2 12.3 6.7 Short Term Loans 259.5 208.0 113.2 74.0 Current liabilities & Provisions 446.6 706.2 345.6 617.8 Total Sources of Funds 1,461.5 1,584.4 1,179.7 1,322.1 Cosolidated Standalone	Cash Flow Statement Cash Flows from Operating Activities Operating profit before working capital changes Movements in working Cash generated from operations Net cash inflow from operating activities ( A ) Net cash used in investing activities ( B ) Net cash flow used in financing activities ( C ) Impact on cash flow on account of foreign currency translation Net increase/(decrease) in cash and cash equivalents (A+B+C) Opening Cash Balance Cash and cash equivalents at the end of the year	5 FY-19 FY-18 FY-19 FY-18 249.3 207.2 225.8 190.5 (70.7) (1.6) (68.3) 3.3 178.5 205.6 157.5 193.8 126.1 188.0 106.3 176.5 (134.8) (187.4) (114.5) (153.7) (243.4) 247.3 (244.7) 228.3 0.9 1.4 - - (251.3) 249.3 (252.9) 251.1 255.0 5.7 253.5 2.4 3.7 255.0 0.6 253.5 Standalone Consolidated ~~,.~~ ~~,.~~ ~~,.~~

How we managed ….……Consolidated

Cash Generated from Operations Rs. 249.27 Crs Borrowings Rs. 51.5 Crs Other Receipts Rs. 4.06 Crs

Working Capital Changes Rs. 65 Crs Cash Used in Capex Investment Rs. 129 Crs Cash Used in JV Investments Rs. 12.8 Crs Cash Used in Interest, Tax & Dividend Rs. 90 Crs

Excluding IPO Proceeds & its Utilisation

Standalone Quarterly Trend

(fig in Rs Crs)

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600 25%
20%
17% 20%
500
15%
400 8% 9%
4% 10%
300 5%
-1%
-8% 0%
200 -11%
-5%
100
-10%
0 -15%
Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19
Revenue Growth
395.1 463.3 414.2 411.6 493.4 536.6 494.6 512.4
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70 12.2% 12.4% 14%
60 11.1% 11.1% 11.0% 11.2% 10.9% 12%
10.1%
50 10%
40 8%
30 6%
20 4%
10 2%
0 0%
Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19
EBITDA EBITDA %
43.7 51.6 45.5 50.1 50.0 60.1 54.0 63.5
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Consolidated Quarterly Trend

(fig in Rs Crs)

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700 15%
12% 12%
10%
600
10%
500 6%
5%
400 3%
300 -1%
0%
200 -5%
-5%
100 -8%
0 -10%
Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19
Revenue Growth
466.9
454.5 509.3 515.6 576.3 608.1 578.3 573.1
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80 12.7% 14%
70 10.9% 11.3% 11.0% 10.6% 11.1% 10.6% 12%
9.8%
60
10%
50
8%
40
6%
30
4%
20
10 2%
0 0%
Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19
EBITDA EBITDA %
49.5 57.4 51.5 54.6 56.7 67.4 61.2 72.5
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Where are we………………..

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STL Rev
Sandhar vs. Industry OEM Vol OEM Gr
Customer (Rs in STL Gr %
(Mn) %
Crs)
7.8 637 3.1% 10.8%
3.8 532 11.6% 27.0%
Overall Growth 2 & 3 Wheelers Passenger Commercial OHV 0.2 161 7.4% 1.5%
Vehicles Vehicles
Sandhar Rev Gr % Industry Vol. Gr %
NA 158 NA 125.3%
Segmentwise Revenue NA 107 NA 5.0%
5.50% 0.8 95 0.7% 10.2%
57.47% 20.61% 14.47%
1.96% NA 86 NA 4.3%
2 & 3 Wheelers PVs CVs OHVs Others
NA 50 NA 26.4%
Productwise Revenue Pie
NA 60 NA 59.0%
21% 10% 11% 14% 17% 15% 13%
0.7 29 14.5% 3.6%
Locking Systems Vision Systems Sheet Metal OHV ADC Assemblies Others 5.9 23 -3.6% 14.4%
70.4%
20.0%
16.5% 16.1%
12.2%
6.5% 6.6% 5.6%
0.4% NA
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Where are we…….. WOS- Financials

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Total Income (Rs. Crs)
242.9
FY'19 A FY'18 A
219.1
42.3
30.9
8.8 8.2 16.4 14.9
STB STM STP STPL
EBITDA (Rs Crs)
EBT (Rs. Crs)
5.2
21.4 4.7
4.1
17.5
3.1
0.2
0.0 0.1
5.4
4.8
4.2
0.8
0.2 0.3 STB STM STP STPL
-2.7
STB STM STP STPL
10
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Where to cover……….. ( all fig in Rs Crs)

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Revenue FY'19 A Revenue FY'18 A
Gross Profit FY'19 A Gross Profit FY'18 A
76.2 8.9 9.1
54.6
38.3 2.8 2.7
4.6 6.5 Jaipur Oragadam Hosur
0.7
-1.3 -0.3
Jaipur Oragadam Hosur
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Jaipur
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Oragadam
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Hosur
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• Investments : 33.3 Crs  Investments : 52.27Crs Investments : 69.58 Crs

• EBITDA : (4.29) Crs Vs (2.5) Crs FY 18  EBITDA : 2.86 Crs Vs 0.6 Crs FY18 EBITDA : 2.5 Crs Vs (0.5) Crs FY18   EBT : (8.21 Crs) Vs (3.95) Crs FY18 EBT : (1.07) Crs Vs (0.40) Crs FY18 EBT : (3.44) Crs Vs (0.9) Crs FY18 • EBITDA impact : 1.1 Crs ( Margin impacted by 0.05 % ) ; EBT impact : -12.72 Crs ( Margin impacted by 0.62%)

Financial Ratios- Standalone

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40
Receivables collection period 39.35
Inventory Holding Period
39
39 38.2
38 38
36.4
37
37.0
37
36 35.3 36.4
35 34.22 36
35.4
34
35
33
32 34
FY16 FY17 FY 18 FY19
33
FY16 FY17 FY 18 FY19
Creditors holding period Debt-Equity Ratio
66 1.14
65.2
65
64.4
0.86
63.85
64
63
0.53
62
61.4
61 0.16
60
59 FY16 FY17 FY 18 FY19
FY16 FY17 FY 18 FY19
No Of Days
No. of Days
No. of Days
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STL- Working capital Utilization

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160 12%
140
9.53% 8.91% 10%
8.88%
120 8.46%
8.83% 8.96% 9.02%
8%
100
8.62%
80 86.52 6%
83.30 82.65
71.09
60
4%
40
2%
20
83.26 99.50 142.33 129.22
0 0%
Q1 Q2 Q3 Q4^
2018-19 2017-18 2017-18 2018-19
3 M MCLR (YBL) Q1 Q2 Q3 Q4
FY 2018-19 8.97% 9.25% 9.53% 9.45%
FY 2017-18 8.47% 8.38% 8.27% 8.60%
Average Interest Rate
Average working Capital (In Crs)
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T H A N K Y O U

Sandhar Technologies Limited CIN: L74999DL1987PLC029553 Investor Relations: Ms. Charu Khatri Email: investors@sandhar.in