Sandhar Technologies Limited — Investor Presentation 2021

Nov 12, 2021

Growth. Motivation. Better life

SANDHAR

Ref: STL I REG-30/ BSEI NSEI 2021-2022/91

Dated: 12[th ] November, 2021

To,

Department of Corporate Services, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai -400 001

To,

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

BSE Code: 541163; NSE: SANUHAR

Suh: /1ti1 atio11 to Stock Ecla11ge- /11ve!tor Presentatiou i1 co1 1ection with Un-Audited Standalone & Consolidated Financial Results for tle q1arte1· and half vea,• e1ded 3([1] ' Septemher,2021

Dear Sir/Madam,

Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the copy of Investor Presentation in connection with Un-Audited Standalone & Consolidated Financial Results for the quarter and half year ended 30 [th ] September, 2021, the same is uploaded on the website of the Company www.sandhagoup.com

Kindly take the same on record.

Thanking you,

Yours Faithfully,

DHAR ECHNO'LOGJ.ES LIMITED

Ko Company Secretary & Compliance Officer

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Encl.: As above

Sandhar Technologies Limited

Corporate Office: 13, Sector-44, Gurugram-122 002, Haryana, India. Ph: + 91 12-4518900 Registered Office: B-6/20, L.S.C., Safdarjung Enclave, New Delhi-110 029, India, Ph: +91-11-40511800 E-mail: engujrles@sandhar.in, website: w.sandhargroup.com: CIN-L74999DL1987PLC029553

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INVESTOR’S PRESENTATION Q2 & H1 FY 21-22 Performance

Mexico Plant

Safe Harbour

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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 forwardlooking 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.

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Key Highlights

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Sandhar Technologies Limited has put up a strong performance in H1 FY 22, with half year revenues at Rs. 1032 Crs. which has increased by 63% and PAT increased by 301% from H1 FY 21.

Industry Updates Financials (H1 FY 22 vs H1 FY 21)

Industry registered a growth of 30% in H1 FY 22 whereas Sandhar has achieved a growth of 64% from H1 FY 21.

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Sandhar Rev Gr % Industry Sales vol. Gr %
131%
117%
74% 74%
64% 62%
50%
30% 30%
23%
Overall Growth 2W 4W CV OHV
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Consolidated

• Revenue of Rs. 1032 Crs., up by 63%.

• EBITDA of Rs. 95 Crs., up by 107%.

• Cash Profit of Rs. 75 Crs., up by 106%.

• Cash EPS is Rs. 12.53*

Standalone

• Revenue of Rs. 857 Crs., up by 62%.

• EBITDA of Rs. 72 Crs., up by 103%.

• Cash Profit of Rs. 60 Crs., up by 90%.

• Cash EPS is Rs. 10.03*

• EPS not annualized

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Key Highlights

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Sandhar Technologies Limited has put up a strong performance in Q2 FY 22, with quarter revenues at Rs. 620 Crs. which has increased by 51% and PAT increased by 904% from Q1 FY 22.

Industry Updates Financials (Q2 FY 22 vs Q1 FY 22)

Industry registered a de-growth of 1% in Q2 FY 22 whereas Sandhar has achieved a growth of 24% from Q2 FY 21.

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Overall Growth 2W 4W CV OHV
70%
64%
32%
24%
17% 16%
7%
3%
-1% -4%
Sandhar Rev. Gr % Industry Sales vol. Gr %
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Consolidated

• Revenue of Rs. 620 Crs., up by 51%.

• EBITDA of Rs. 62 Crs., up by 90%.

• Cash Profit of Rs. 48 Crs., up by 74%.

• Cash EPS is Rs. 7.96*

Standalone

• Revenue of Rs. 538 Crs., up by 69%.

• EBITDA of Rs. 52 Crs., up by 147%.

• Cash Profit of Rs. 42 Crs., up by 127%.

• Cash EPS is Rs. 6.96*

• EPS not annualized

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Our Footprint

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• 43 State of-art-the-manufacturing facilities Technical collaboration with South Korea, Japan & Taiwan

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Revenue Model

Key Customers

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2 W

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PV

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CV

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OHV

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3W

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Segment wise Revenue Share* (Rs. 1028 Crs.)

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2 Wheelers 4 Wheelers OHV, Tractors Others 55% 24% 16% 5%

Product wise Revenue Share*

Locking Sheet Vision ADC Cabins Assemblies Others System Metal System 23% 13% 9% 14% 19% 14% 8%

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*Revenue from operations excluding other income. All Rights Reserved@Sandhar 2021

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H1-FY 22 Financial Snapshot (fig. in Rs. Crs)

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Consolidated

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Standalone
Revenue EBITDA Revenue EBITDA
95 857 72
1,032 14%
530
632 46
9% 9%
36 8%
7% 7%
4%
6M FY 21 6M FY 22
6M FY 21 6M FY 22 6M FY 21 6M FY 22 6M FY 21 6M FY 22
GR Vs LY GR Vs LY GR Vs LY GR Vs LY
63% 107% 62% 103%
EBT PAT EBT PAT
23 33
25
28 25
31
15 2% 4% 23
3% 8% 18
5 (12) 4% 13 3% 4%
1%
(13) 8
-5
(2)
3 (1)
-2% -2% 0%
-15 -2% -2% -2 0% -1%
6M FY 21 6M FY 22 6M FY 21 6M FY 22 6M FY 21 6M FY 22
6M FY 21 6M FY 22
GR Vs LY GR Vs LY GR Vs LY GR Vs LY
342% 301% 2277% 2108%
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Q2-FY 22 Financial Snapshot (fig. in Rs. Crs)

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Consolidated

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Revenue
EBITDA
70 62
620 58 18%
60
502 15%
50
412
40 12% 33 12%
10%
30 9%
8%
20 6%
10 3%
- 0%
Q2 FY 21 Q2 FY 22 Q1 FY 22 Q2 FY 21 Q2 FY 22 Q1 FY 22
GR Vs LY GR Vs Q1 GR Vs LY GR Vs Q1
24% 51% 7% 90%
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Standalone

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Revenue EBITDA
538 52
46
430
319 11%
21
10%
7%
Q2 FY 21 Q2 FY 22 Q1 FY 22 Q2 FY 21 Q2 FY 22 Q1 FY 22
GR Vs LY GR Vs Q1
GR Vs LY GR Vs Q1
25% 69% 11% 147%
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EBT PAT EBT PAT
24
25 6% 32
30 27 30 9% 20 21 30 26 20
20 5%
25 25 4%
20 156% 4% 4% 20 6% 6%
5% 3%
15 5% 15
10
10 3% 2% 10
5 2 5 2 5 1 1
- 0% 0% 1% 0 0% 0%
Q2 FY 21 Q2 FY 22 Q1 FY 22 0 0% Q2 FY 21 Q2 FY 22 Q1 FY 22 Q2 FY 21 Q2 FY 22 Q1 FY 22
Q2 FY 21 Q2 FY 22 Q1 FY 22
GR Vs LY GR Vs Q1 GR Vs LY GR Vs Q1 GR Vs LY GR Vs Q1 GR Vs LY GR Vs Q1
9% 1576% 9% 904% 20% 2251% 21% 2295%
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Profit & Loss Statement – Consolidated (fig. in Rs. Crs)

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Particulars Q2 FY 22 Q2 FY 21 YoY (%)	Q1 FY 22 QoQ (%)	H1 FY22 H1 FY21 HoH(%)
Total Revenue 620 502 24%	412 51%	1,032 632 63%
Expenses Cost of materials 373 292 27% Labour cost 49 41 18% Personnel expenses 35 31 11% Other expenses 102 80 29%	231 62% 39 26% 31 12% 79 30%	603 361 67% 85 61 41% 67 53 26% 181 111 63%
Total expenses 558 444 26%	379 47%	937 586 60%
EBITDA 62 58 7%	33 90%	95 46 107%
EBITDA % 10% 12% Finance costs 4 4 -19% Depreciation 25 24 3%	8% 4 -7% 24 4%	9% 7% 7 8 -1% 49 45 7%
Profit before tax 34 30 14%	5 581%	39 (7) 642%
PBT % 5% 6% Losses from JV 4 2 72%	1% 3 29%	4% -1% 7 6 25%
Profit before tax after JV losses 30 27 9%	2 1576%	31 (13) 342%
Tax Expenses 8 8 11%	(0) 2548%	8 (1) 681%
Netprofit 21 20 9%	2 904%	23 (12) 301%
Net Profit % 3% 4% Other comprehensive income (1) (2)	1% (0)	2% -2% (1) (1)
Total comprehensive income 21 18 15%	2 1170%	22 (12) 278%
Comprehensive Income % 3% 4%	0%	2% -2%
Cash Profit 48 45 7%	28 74%	75 37 106%
Earnings Per Share(EPS) 3.53 3.24 9%*	0.35 907%	3.88 (1.93) 301%
Cash Earning Per Share (CEPS) 7.96 7.44 7%*	4.57 74%	12.53 6.08 106%

• EPS not annualized for quarter & half year

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Profit & Loss Statement – Standalone (fig. in Rs. Crs)

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Particulars Q2 FY 22 Q2 FY 21 YoY (%)	Q1 FY 22 QoQ (%)	H1 FY22 H1 FY21 HoH(%)
Total Revenue 538 430 25%	319 69%	857 530 62%
Expenses Cost of materials 358 272 32% Labour cost 40 35 14% Personnel expenses 23 21 10% Other expenses 65 55 19%	207 73% 30 34% 19 25% 43 51%	565 336 68% 67 49 35% 45 36 22% 109 72 52%
Total expenses 486 383 27%	298 63%	785 494 59%
EBITDA 52 46 11%	21 147%	72 36 103%
EBITDA % 10% 11% Finance costs 2 3 -38% Depreciation 18 17 4%	7% 2 -16% 18 4%	8% 7% 4 4 -11% 36 33 8%
Profit before tax 32 26 20%	1 2251%	33 (2) 2277%
PBT % 6% 6% Tax Expenses 8 7 18%	0% 0 2128%	4% 0% 8 (0) 2998%
Netprofit 24 20 21%	1 2295%	25 (1) 2108%
Net Profit % 4% 5% Other comprehensive income (0) (2)	0% (1)	3% 0% (1) (1)
Total comprehensive income 24 18	(0)	24 (2)
Comprehensive Income % 4% 4%	0%	3% 0%
Cash Profit 42 37 13%	18 127%	60 32 90%
Earnings Per Share(EPS) 3.94 3.26 21%*	0.16 2363%	4.10 (0.20) 2108%
Cash Earning Per Share(CEPS) 6.96 6.15 13%*	3.07 127%	10.03 5.28 90%

• EPS not annualized for quarter & half year

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Balance Sheet (fig in Rs. Crs)

Particulars	30-Sep-21 31-Mar-21 Consolidated	30-Sep-21 31-Mar-21 Standalone
Application of Funds Gross Fixed assets Less: Acc. Depreciation	1,291 1,232 411 376	928 898 312 289
Net Fixed assets with CWIP Non-current investments Other non-current assets Inventories Trade receivables Other Current Assets	879 856 52 57 30 19 251 211 374 357 98 95	616 609 116 114 26 17 152 134 335 313 63 60
Total Application of Funds	1,684 1,596	1,307 1,247
Sources of Funds Share capital Reserves and surplus	60 60 760 744	60 60 764 747
Shareholders' Funds Minority Interest Other Non-current liabilities Long Term Secured Loans Short Term Loans Current liabilities & Provisions	820 804 4 4 94 97 95 99 209 121 461 470	824 807 - - 22 22 0 0 103 43 358 374
Total Sources of Funds	1,684 1,596	1,307 1,247

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Cash Flow Statement (fig in Rs. Crs)

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Consolidated Standalone
Particulars
H1 FY 22 H1 FY 21 H1 FY 22 H1 FY 21
Cash Flows from Operating Activities
Profit before tax 31 (13) 33 (2)
Depreciation and amortization expense 49 45 36 33
Other adjustments 12 12 2 3
Operating profit before working capital changes 92 44 70 34
Movements in working capital: (78) (7) (67) 4
Cash generated from operations 15 37 4 38
Taxes Paid 14 7 13 7
Net cash inflow from (used in) operating activities ( A ) 1 30 (10) 31
Cash Flows from Investing Activities
Capital Expenditure (66) (21) (37) (15)
Purchase/Investments in joint ventures (2) (10) (2) (10)
Other Reciepts 3 1 3 1
Net cash used in investing activities ( B ) (65) (30) (36) (23)
Cash Flows from Financing Activities
Borrowings Proceeds 84 21 60 2
Payment of lease liabilities (7) (7) (4) (4)
Dividend Paid (6) (5) (6) (5)
Interest paid (7) (7) (3) (4)
Net cash inflow from (used in) financing activities ( C ) 63 2 46 (10)
Foreign currency translation gain (1) (3) - -
Net increase/(decrease) in cash and cash equivalents
(1) 2 0 (3)
(A+B+C)
Opening Cash Balance 6 7 1 3
Cash and equivalents at the end of the year 4 6 1 1
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WOS Performance (fig in Rs. Crs)

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Revenue EBITDA EBT
175 23 6
103
10
(5)
6M FY 21 6M FY 22 6M FY 21 6M FY 22
6M FY 21 6M FY 22
70% 115%
207%
JV Performance (fig in Rs. Crs)
Revenue
EBITDA PAT
6M FY 21 6M FY 22
33
6M FY 21 6M FY 22
25
6M FY 21 6M FY 22 (6)
(4) (7)
(4)
31% 9% 25%
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*Considered 50%

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Domestic New Business- Supplies Started to Electric Vehicles

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(FY 2021-22)

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Product Category

Products Supplied

Key Customer

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• Ignition & Switch Locking System

• • Latch System

• Hook & Striker

• Mirror & Vision System

• • Wheel Assembly

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KABIRA MOBILITY
KABIRA
MOBILITY
PUR ENERGY
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Overseas New Business- Supplies Started to Electric Vehicles (FY 2021-22)

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Product Category Products Supplied
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Key Customer
TRW
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TRW
•
Seat Belt retractor components
•
Wiper systems components
TRW
•
Electronic circuits housings
and covers
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Revenue at Consolidated level from this segment stands Rs. 23.26 Crs. for H1 FY 22.

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Potential New Business for Electric Vehicles (FY 2021-22)

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Purchase Order Received Schedule Awaited

Products to be Supplied

Customer Portfolio

• Ignition & Switch Locking System

• Latch System

• Door Handles

• Battery Locking System

• Mirrors & Vision System

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Strom Motors

KUSALVA INTERNATIONAL LTD

IVROOM PVT LIMITED

Matter Motor Works Limited

NDA Signed- Presently under Technical Discussion

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• Ignition & Switch Locking System

• Latch System

• USB

• Mirrors & Vision System

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OZOTEC AUTOMOBILES PVT LTD

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Shareholding Pattern FY22 vs FY21

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Mutual Funds,
Retail, 12.83%
15.33%
FII, 1.47%
Promoters,
70.37%
H1 FY'22
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Mutual Funds, Retail, 12.37%
15.74%
FII, 1.55%
Promoters,
70.35%
FY'21
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Share Price Movement September 21 vs September 20

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THANK YOU