Schaeffler India Limited — AGM Information 2020

Jul 1, 2020

Schaeffler India Limited · Pune · Maharashtra

BSE Limited National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers, Exchange Plaza, C - 1, Block G, Dalal Street, Bandra-Kurla Complex, Bandra (E) MUMBAI- 400 001 MUMBAI- 400 051

Company Code: 505790 Company Code: SCHAEFFLER

01/07/2020

Sub.: 57[th] Annual General Meeting of Schaeffler India Limited held on Tuesday, June 30, 2020

Dear Sirs,

Phone: +91 8669613701

With reference to our letter dated July 1, 2020 for submitting the proceedings of the 57[th] Annual General Meeting (AGM) of the Company, this is to inform the stock exchanges that the enclosed presentation was made by Mr. Harsha Kadam, Managing Director and CEO at the AGM.

Kindly take the same on your record.

Thanking you,

Yours faithfully, For Schaeffler India Limited

Ashish Digitally signed by Ashish Tiwari Date: 2020.07.01 Tiwari 18:19:54 +05'30'

Ashish Tiwari VP – Legal & Company Secretary

Encl.: As above

Schaeffler India Limited

Corporate Office: 15th Floor, (ASTP) Amar Sadanand Tech Park, Baner, Pune-411045, Maharashtra, Registered office: Nariman Bhavan, 8th Floor, 227 Backbay Reclamation, Nariman Point, Mumbai 400 021, Maharashtra, India, Phone +91 22 6681 4444, Fax +91 22 2202 7022, www.schaeffler.co.in, info.in@schaeffler.com, CIN: L29130MH1962PLC012340 ·

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Schaeffler India Limited

57[th] Annual General Meeting

June 30, 2020

Harsha Kadam Managing Director

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Shareholders’ visit to Pune plant on January 23, 2020

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132 Shareholders hosted by Talegaon (Pune) Plant : Chairman with Executive Management participated

Insightful sharing : Focus on Governance and Sustainability

Capability showcasing : R&D Center, Plant Operations and CSR activities kiosk

Encouraging feedback from Share Holders.

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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COVID-19 Crisis

Map of confirmed cases per million residents

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COVID-19 Global pandemic : Global supply chain impacted

Consequences and further course still not foreseeable

Long term impact of stimulus measures and policy changes yet to unveil

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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COVID-19 | Schaeffler Resilience to the front

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Crisis Management Team activated on 6[th] March : Protect , Recover & Retool.

Enabling Home office as well as protecting health and safety of employees : Engagement, Communication and Learning activities

Fast & flexible countermeasures : Plant and office SOPs, PPE, Masks and more

Care for community : Donation of 21 INR mn

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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COVID-19 | Impact on Schaeffler India

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Average production loss ~52 working days

Capacity utilization impacted due to low demand even after resuming operations in all plants

All round efforts to control costs and working capital undertaken to mitigate loss

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Balanced business portfolio

Customer Sectors

Two Raw Wheelers Materials Cars & Light Industrial Commercial Automation Vehicles Power Truck & Bus Transmission Offroad Wind Aftermarket Rail & Distribution

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Mobility 80% Others 20%

Bearings 60% Engine & Transmission solutions 40%

Automotive (incl aftermarket) 53% Industrial (incl distribution) 47% excluding exports

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Automotive Business | Strong Systems Capability

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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Industrial Business | Wide Product Spectrum

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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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The Prime Movers | Strong Leadership Team

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Transparency
Trust
Teamwork
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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Q1 2020 | Revenue and Earning

Revenue

INR mn

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11,723
10,365
9,285
QoQ -10.4%
YoYQ -20.8%
Q1 '19 Q4 '19 Q1 '20
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PBT (before exceptional items)

INR mn

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1,626
1,241
1,101
13.9% 12.0% 11.9%
Q1 '19 Q4 '19 Q1 '20
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% to revenue
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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Overview | Financial year 2019

Highlights

Balanced business portfolio helped us to sail through a tough year

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Working Capital control led to strong free cash flow

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Cost flexing and cost control led to a partial recovery of operating performance

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Judicious investment realization despite downturn

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Lowlights

In 2019, Automotive market witnessed a double digit dip

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Industrial business witnessed slowdown in Q4/2019

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Limited closure of plants led to partial fixed cost impact

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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Revenue from operations

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Revenue Divisions
INR mn -4.4%
Automotive OE
-12.9%
45,615
43,606
Automotive Aftermarket -2.4%
Industrial 2.9%
Exports -1.0%
2018 2019
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Earnings

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EBITDA
INR mn
-14.8%
7,585
6,461
16.6% 14.8%
2018 2019
% to revenue
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PBT

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INR mn
-20.8%
6,749
5,346
14.8% 12.3%
2018 2019
% to revenue
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Free cash flow and Investments

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FCF Investments
INR mn INR mn
397% 38%
2,435
3,326
2,408
5.3% 7.6%
490
2018 2019 2018 2019
% to revenue
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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Dividend

Dividend per share

INR

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35
30
Special
Dividend
10 INR
17
12
12% 14% 24% 30%
2016 2017 2018 2019
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Steady and strong
dividend payout
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Pay out ratio (% to net profit before exceptional items)

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Success stories in 2019

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Pioneered the Roll Shop Management Services for the Steel sector in India

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Mobile Van (REPXPERT) for Training of Mechanics in the Aftermarket

Major Business Launches

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Clutch for Mahindra Engine Components for Valvetrain components for Engine Launch of Insulated Bearings
Bolero BMT & Marazzo KIA’s 1.5L Engine Program and Clutch for BSVI Programs for Railway Applications
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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Customer Recognitions in 2019

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Best Quality Performance with Zero Defect

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Awarded for Design and Development of Efficient Products

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Best Vendor for the year 2018-19

‘Partner Level Award’ for the sixth time in a row

Best Supplier Award for Zero Warranty and Zero PPM

Best Supplier for Outstanding Performance in Quality Best Supplier Award for Consistent Zero PPM Quality Performance

‘Supplier Excellence Award’ for Best Product Development Performance

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June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Leadership position in Corporate Governance

Schaeffler India Limited ranks among Top 3 companies in Sensex Top 6 companies in BSE100 with “LEADERSHIP” Position in GOVERNANCE

Assessment as on December 20, 2019 by Institutional Investor Advisory Services (IiAS), a SEBI-registered proxy advisory firm

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Schaeffler India embraces Integrated Reporting (IR)

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Business Value Creation
Integrated Reporting
Non-financial information
Financial information
Integrated Thinking | Financial performance
ESG
Short, Mid, Long Term
Capitals and resources utilization
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Six Capitals in IR

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Six capitals aimed at greater cohesion & efficiency in reporting

Effectively adopting “integrated thinking” as a way of breaking down silos and reducing duplication

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Employees – our biggest asset | Engagement activities 2019

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Employee Fitness Week

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Festive Celebrations

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Forum of Inspiration

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Summer Camp for Kids

Forum of Inspiration : encouraging innovation & creativity

Encouraging diversity & inclusion at workplace

Fitness week and many more health related sessions

Festive celebration with employees and their families

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Responsibility towards Community| CSR activities for 2019

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Investment of 92.7 INR mn in various social interventions

Increased focus on education and skilling of women : Skill center, Scholarship, Hostel

Schaeffler Technical Enhancement Program (STEP)

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MOBI Health Unit Initiative

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SIL HOPE Engineering Scholarship

Environment focused programs – Clean and Green Maneja, Jal Sahara

Effectiveness of CSR Programs assessed

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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Winning with Winning Customers | We participate in the growth story of India

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E Loco

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Strong business relation with Alstom India

E-Loco : Traction Motor Bearings, Suspension Tube Bearings, Wheelset bearing and Axle box Housings Contributing successfully in metro projects across India & abroad.

Metro

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Disclaimer

The information contained in this presentation is provided by Schaeffler India Limited (“ the Company ”), to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) re-circulated, redistributed, passed on, published in any media, website or otherwise disseminated, to any other person, in any form or manner, in part or as a whole, without the prior written consent of the Company. This presentation does not purport to be a complete description of the market conditions or developments referred to in the material. This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "plan", "project“, "should" and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about the Company’s beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of the Company. Forward-looking statements therefore speak only as of the date they are made, and the Company undertakes no obligation to update any of them in light of new information or future events.

By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on the management of the Company’s current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting our markets, and other factors beyond our control).

This presentation is intended to provide a general overview of the Company’s business and does not purport to deal with all aspects and details regarding the Company. Accordingly, neither the Company nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither the Company nor any of its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or missions in, any information or opinions contained herein, and none of them accept any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The material contained in this presentation reflects current legislation and the business and financial affairs of the Company which are subject to change.

This presentation is not an offer of securities for sale in any jurisdiction.

June 30, 2020 Schaeffler India Limited | 57th Annual General Meeting

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