Schaeffler India Limited — Earnings Release 2021

Oct 28, 2021

SCHAEFFLER

Schaeffler India Limited • Pune • Maharashtra

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Company Code: 505790

National Stock Exchange of India Limited

Exchange Plaza, C - 1, Block G, Bandra-Kurla Complex, Bandra (E), Mumbai-400051 Company Code: SCHAEFFLER

28/10/2021

Sub: Press Release

Dear Sirs,

Phone: +91 8669613701

Further to our letter dated October 28, 2021 for Unaudited Financial Results of the Company for the quarter ended September 30, 2021, we enclose herewith Press release.

Kindly take the same on your record.

Thanking you.

Yours faithfully,

For Schaeffler India Limited

VP - Legal & Company Secretary Encl.: As above

Schaeffler India Limited

Registered and Corporate Office: 15th Floor, (ASTP) Amar Sadanand Tech Park, Baner, Pune, Maharashtra, India - 411045 Tel: +91-20-68198400 | Fax: +91-20-68198405 CIN: L29130PN1962PLC204515, www.schaeffler.co.in, info.in@schaeffler.com,

Press Release

Schaeffler India announces Q3 and 9MCY21 results and significant corporate actions

• Strong revenue and operational performance on all fronts continue for the quarter

• Announces a 5 for 1 stock split

• Announces a target dividend payout ratio

Pune | 28 October, 2021 : Leading industrial and automotive supplier, Schaeffler India Limited (BSE: 505790, NSE: SCHAEFFLER) today announced its board approved the third quarter (Q3) and nine monthly (9MCY21) results for the quarter ending on Septermber 30th, 2021. The board also approved a stock split and target dividend payout ratio along with.

Stock split announcement

The Board of Directors approved a subdivision of each equity share of face value of Rs 10 per share into five equity shares of face value of Rs 2 per share, subject to approval of the shareholders.

The 5 for 1 stock split will see existing shareholders issued with five new shares in lieu of every one share they currently own. The rationale behind the stock split is to encourage wider participation of investors and to improve the liquidity of the equity shares in the stock market.

Dividend payout policy

The Board of Directors also approved the target dividend payout ratio of 30%-50% of the annual standalone profits after tax (PAT) to be announced by the company from time to time, subject to the applicable rules and regulations. The company has adopted a progressive dividend policy, intending to sustain or raise the dividend each year, in conjuction with the financial performance and free cashflow generation each year.

The company shall endeavor to consider a total dividend payout ratio as indicated above subject to the circumstances and scenarios mentioned in the dividend distribution policy.

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Results update

July – September 2021 (Third Quarter)

• Total revenue from operations (net) for the quarter (Q3) was INR 14,876 million, higher by 32.7% than the corresponding quarter of 2020 and 20.7% higher than the preceding quarter (Q2’21).

• PBT (before exceptional items) for the quarter (Q3) was INR 2,296 million, 50.3% higher than the corresponding quarter of 2020 and 34.6% higher than the preceding quarter (Q2’21). PBT margin for the quarter stood at 15.4%, against 13.6% during the corresponding quarter of 2020.

• Net Profit for the quarter was INR 1708 million while margin for the quarter stood at 11.5%.

January – September 2021 (Nine Months)

• Total revenue from operations (net) for the nine months period was INR 40,373 million, higher by 62.3% than the corresponding period of 2020.

• PBT (before exceptional items) for the period was INR 5,863 million, higher by 184.4% than the corresponding period of 2020 .

• Net profit for the period stood at INR 4,385 million, the net profit margin for the period stood at 10.9%.

Commenting on the results, Mr. Harsha Kadam, Managing Director , said, “This is the our fourth consecutive quarter showing a strong performance. The performance demonstrated during the first half of the year further improved in the third quarter, despite significant input cost pressures. Our business divisions – automotive technologies, automotive aftermarket and industrial have delivered resounding performance and further consolidated our position of being the preferred technology partner. However, we do see some headwinds due to the global chip shortage and the resultant supply chain disruptions, which we are monitoring closely. Our continued focus on countermeasures and deeper customer engagements have yielded impressive results.“

Commenting on the corporate actions, he added, “The stock split would encourage wider participation of investors and improve the liquidity of the equity shares in the stock market. We believe that the announcement of target dividend payout ratio in the policy is a testimony towards long term value creation.“

About Schaeffler India Limited

Schaeffler has been present in India for over 50 years. With 3 well known product brands LuK, INA and FAG, 4 manufacturing plants and 8 sales offices, Schaeffler has a significant presence in India. Schaeffler is among the largest Industrial and Automotive supplier with sales of INR 37.6 billion in 2020 and around 2,794 employees. The manufacturing plants in Maneja and Savli (Vadodara), produce a vast range of ball bearings, cylindrical roller bearings, spherical roller bearings and wheel bearings that are sold under the brand name of FAG. The plant at Talegaon

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near Pune, manufactures engine and powertrain components for front accessory drive system, chain drive systems, valve train, gear shift systems and a range of needle roller bearings and elements, under the brand INA. The fourth manufacturing location is based out of Hosur, producing a wide range of clutches and hydraulic clutch release systems for passenger cars, light commercial vehicles, heavy commercial vehicles and tractors sold under the brand of LuK. Schaeffler also has the largest after-market networks serving the industrial and automotive customers. All of this is backed by dedicated engineering, research and development support based in India in support of product teams.

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For further information

Vijay Chaudhury, Head – Corporate Communications and Investor Relations, Schaeffler India Limited Tel: +91 (20) 3061 4221 / +91 91686 84744 Email: Vijay.Chaudhury@Schaeffler.com

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