Varroc Engineering Ltd.

Regd. & Corp. Office

L-4, MIDC, Industrial Area Tel + 91 240 6653700 email : [email protected] Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335

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VARROC/SE/INT/2021-22/38

October 5, 2021

To,

The Manager- Listing The Manager – Listing The Listing Department, The Corporate Relation Department, National Stock Exchange of India Bombay Stock Exchange Limited Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Mumbai-400001. Bandra (East), Mumbai-400051. BSE Security Code: 541578 NSE Symbol: VARROC

Sub.: Intimation of schedule of meetings with institutional investors, analyst, etc.

Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’)

Dear Sir/Madam,

Pursuant to Regulation 30 and other applicable regulations of the Listing Regulations, this is to inform you that the schedule of the institutional investor/analysts meetings, is as follows:

Date(s) of meeting	Type of meeting
October 6, 2021 and October 7, 2021*	Meeting with certain institutional investors, analysts, amongst others including over on Call / Video Conference - one to one basis

* subject to reschedule / change as per requirement / exigency.

Further, copy of the latest corporate presentation is enclosed which will be presented and discussed at the above-mentioned meetings. The same is also uploaded on the website of the Company i.e. www.varroc.com.

We request you to take this on record, and to treat the same as compliance with the applicable provisions of the Listing Regulations, as amended.

For Varroc Engineering Limited

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________ Ajay Sharma

Group General Counsel and Company Secretary

Encl: a/a

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Varroc Engineering Limited Investor Presentation

October 2021

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Classification : Confidential

Disclaimer

This document and the information contained herein do not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries or affiliates in any jurisdiction or as an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax or other product advice.

This document has been prepared by the Company based on information available to them for use at a non-deal road show presentation by the Company for selected recipients for information purposes only and does not constitute a recommendation regarding any securities of the Company. The information has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.

This document is highly confidential and being given solely for your information and for your use and may not be retained by you nor may this document, or any portion thereof, be shared, copied, reproduced or redistributed to any other person in any manner. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the U.S. or any other jurisdiction which prohibits the same except in compliance with applicable securities law. Any failure to comply with this restriction may constitute a violation of the U.S. securities laws or other securities laws.

The statements contained in this document speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent.

This presentation is not an offer of securities for sale in the United States. The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold within the United States or to U.S. persons absent from registration under or an applicable exemption from the registration requirements of the U.S. securities laws. Any offering in the United States may be made only by means of an offering circular that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements.

This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. The Company assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

This presentation contains data sourced from and the views of independent third parties. In replicating such data in this document, the Company does not make any representation, whether express or implied, as to the accuracy of such data. Such data speaks as of its original publication date (and not as of the date of this presentation) and such information is subject to change without notice. The replication of any third party views in this document should not necessarily be treated as an indication that the Company agrees with or concurs with such views. Accordingly, no investment decision should be made solely on the basis of such information.

Past performance information in this presentation should not be relied upon as an indication of (and is not an indicator of) future performance.

Any reference herein to "the Company" shall mean, collectively, Varroc Engineering Limited and its subsidiaries.

By participating in this presentation or viewing or accessing any copy of this document, in whole or in part, attendees agree to be bound by the foregoing limitations.

Classification : Confidential2

Presenters

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Tarang Jain Chairman and Managing Director

Co-founded Varroc in 1988

More than 30 years experience in the automotive industry

Arjun Jain President – Electrical Business Unit and Wholetime Director

Previously associated with Bain and Company India Private Limited

T. R. Srinivasan Group Chief Financial Officer

Total Experience: ~ 32 years

Previously associated with Hindustan Lever Limited, Philips Electronics India Limited and ATC Tires Private Limited

Nitin Kalani Head of Treasury, FP&A and Investor Relations

Total Experience: ~ 17 years Previously associated with RPG group , Rabobank, Credit Suisse and Tata Motors

Classification : Confidential3

1	Company Overview	5

2	Key Credit Highlights	9

3	Business Strategy	24

4	Financial Performance and Highlights	28

Classification : Confidential4

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1 Company Overview

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Classification : Confidential

Varroc Engineering Limited – Global Tier-1 Automotive Component Manufacturing Com an with a Global Foot rint p y p

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



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Founded in 1988 in India by the Jain family
Successful listing on the Indian Stock Exchanges in July 2018
Global Tier-1 automotive component company
- 6[th] largest global exterior automotive lighting manufacturer[(1)]
- 2[nd] largest Indian automotive component company[(2)]

 Two primary business lines

Varroc Lighting Systems (“VLS”) : design, manufacture and supply of exterior lighting systems to passengers cars OEMs globally (“Global Lighting Business”; 66% of FY2021 consolidated revenues)
India Business : design, manufacture and supply of a diverse range of Polymer, Electrical-Electronics and Metallic components to 2W, 3W and 4W OEMs and for exports (32% of FY2021 consolidated revenues)
Strong, long-lasting, growing customer relationships with major auto OEMs globally and in India
Well-diversified global auto component business across geographies, products and customers
Low cost, strategically located manufacturing and design footprint
43 Manufacturing Facilities and 15 R&D centers across 12 countries on 5 continents[(4)]
1,198 engineers globally; 173 valid patents globally; 183 patents applied[(4)]
Experienced management team supported by experienced Board
12,966 employees globally[(3)]

Summary Shareholding Structure[(4)]

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Institutional
Investors
Promoters 19%
75%
Retail &
Others
6%
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Market capitalization of INR 45.9 billion (c. US$618.0 million equivalent)[(5)]
Listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India
Placement to Qualified Institutional Buyers (“QIB”) in March 2021
- Primary placement of 17.97 million equity shares
- Represented 11.76% and 13.33% of postplacement and pre-placement equity respectively
- INR 6,992 million proceeds from the placement
Source: Yole Dévelopement report titled “Analysis of Automotive Exterior Lighting – Landscape for Passenger Vehicles” dated March 8, 2021; based on market share in 2020
Source: CRISIL Research – Industry Review – Auto Components released in February 2021 dated February 2021; based on consolidated revenues for FY2020 excluding TVS Motors
As of June 30, 2021, excluding China JV
As of June 30, 2021
As of September 30, 2021. 1 US$ = INR 74.25 used for conversion purposes

Classification : Confidential6

Grown Rapidly Since Inception – Both Organically and Inorganically

							Acquired the
						Acquired Sa-Ba, an	remaining 30%
						exterior automotive	stake in Romanian
						lighting company in	Electronics JV
Incorporated in 1988 Commenced Polymer business in		Commenced Engine Valves	Establishment of Metallic Forgings	Acquired first overseas company – IMES (Italy), a forging	Acquired Visteon’s global lighting business, now known as Varroc Lighting Business Turkey Developed Electronic Fuel-injection Technology for 2W and 3W in India through a JV with Dell’Orto		Raised additional INR 7 billion in equity in 2021 Raised INR 3.75 billion through onshore NCD
	1990	manufacturing	business unit	business	(“VLS”)	Listed on BSE and NSE	issuance

Establishment of	Established as	Formed Varroc	Acquired TRIOM
Electrical-	'Supplier of	Exhaust Systems	(Italy), a high-end
Electronics	Choice' for Bajaj	for two-wheeler	lighting systems
business unit	Auto	and three-	player for
		wheeler catalytic converters	global two-wheelers

Received  Morocco and Brazil Investments from facilities started in Tata Private February / March Equity 2019
Acquired 50%  Acquisition of 74% stake in Varroc stake in CarIQ, a TYC China, now leading telematics part of VLS solutions provider

Source: Company

Classification : Confidential7

Corporate Structure[(1)]

Varroc Engineering Limited

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Foreign Subsidiaries Indian Subsidiaries
100% 100% 100%
Varroc European VarrocCorp Holding Varroc Polymers Pvt. 100%
Holding B.V. B.V. Varroc Japan Co. Ltd. Ltd.
(Japan)
(Netherlands) (Netherlands) (India)
72.78%
Duro valves India Pvt.
Ltd.
100% 99.99%# 100% 99.98%## 99.99%+ 50%++ 100% 100% 100% (India)
Varroc do Brasil Varroc Lighting
IMES S.de.R.L.de.C.V.Varroc Lighting Systems, Varroc Lighting Systems SRO Varroc Lighting Systems SA Commercia Industria E Corporation BVI Varroc TYC Electronics Systems Varroc Lighting Systems, Italy S.p.A. Systems Turkey Varroc Lighting CarIQ Technologies 74%
(Italy) (Czech (Morocco) LTDA (BVI) Romania SRL (Turkey) Pvt. Ltd.
(Mexico) Republic) (Brazil) (Romania) (Italy) (India)
50%@ 99%$ 100% 100%
100% Team Concepts
Nuova CTS, Srl (Italy) 100% Varroc Lighting Systems, INC. Varroc Lighting Systems, S.p.z.o.o. Auto Lamps Co. Varroc TYC Ltd. Varroc Lighting Romania SA Systems 100% Varroc Lighting Bulgaria EooD Systems Pvt. Ltd. (India)
(USA) (Poland) (China) (Romania) (Bulgaria)
100% Joint Venture
Varroc Lighting
100% Branch in France CQ Varroc TYC Vietnam Co. LtdSystems 100% 50%^^
Auto Lamps Co. Varroc Dell’Orto
Ltd (Vietnam) Pvt. Ltd.
(China) (India)
100% Branch in UK
VLS business
India business
Varroc Lighting
100% Systems GmBH IMES business
(Germany) Intermediate
Holdco
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Source: Company

(1) As of June 30, 2021

@ Balance 50% is held by local joint venture partner # Balance 0.01% is held by Mr. Tarang Jain ++ Balance 50 % is held by BESTE Motor Co. Ltd.
Balance 0.02% is held by the administrators of VLS Morocco; + Balance 0.01% is held by Varroc European Holding BV $ Balance 1% is held by VLS, CZ
** Balance 26% is held by existing promoters * Balance 27.22% is held by Scarpa & Freccia ^^ Balance 50% interest is held by Dell O’rto S.p.A., Italy.

Classification : Confidential8

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2 Key Credit Highlights

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Classification : Confidential

Key Credit Highlights

1 Low Cost and Strategically Located Manufacturing and Design Footprint 2 Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geographies 3 Strong Competitive Position in Attractive Growing Markets 4 Well Positioned to Capture Industry Trends Related Growth both Globally and in India 5 Strong and Long-standing Customer Relationships 6 Robust In-house Technology, Innovation and R&D Capabilities 7 Experienced Management Team and Technically Skilled and Motivated Employees

Classification : Confidential10

Low Cost and Strategically Located Manufacturing and Design Footprint

43[(1)] Operating Manufacturing Facilities and 15[(1)] R&D Centers Across Asia, Europe, Africa, North and South America

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Poland
Czech Republic
Romania
Turkey
China
Morocco Italy
India
Mexico India Vietnam
Brazil
Corporate Headquarters
VLS Headquarters
Manufacturing plant 17 Global Business Manufacturing Facilities
across 12 countries (incl. 2 in India) optimizing production and
R&D Centre distribution for VLS and IMES Business
supported by 11 R&D centers
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26 Manufacturing Facilities for India Business

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26 Manufacturing Facilities for India
Business
Co-location with customers ensures cost
effectiveness and efficient delivery
Manufacturing facilities supported by
4 R&D centers
India Business
Uttarakhand
Haryana (1)
(1)
NCR (1)
Gujarat
(2) MP
(1)
Maharashtra (16)
Karnataka (2)
Tamil Nadu (2)
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 Manufacturing and R&D capabilities spread across low cost countries  Proximity to OEMs leading to cost effectiveness



Servicing multiple OEMs with footprint across the key Indian automotive hubs

Source: Company (1) As of June 30, 2021

Classification : Confidential11

Low Cost and Strategically Located Manufacturing and Design Footprint (Cont’d)

Geographical diversification – Capitalizing on global growth opportunities while mitigating the impact of regional demand fluctuation

Current Trend of Globalization to Localization is also beneficial for Varroc given its global manufacturing footprint

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Global Lighting Business

Global capabilities focused on quality, cost and delivery
Located in low cost countries near major auto markets
Cost competitiveness compared to other players in Europe and North America
Enables establishment as local players with deeper customer relationships
Proximity to customers further supports lower delivery costs as well as delivery capabilities

India Business

Well spread facilities allows flexibility in operations – alignment with customers’ demands while managing costs

Engineers by Country[(1)]

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India,
588
Others, 61
USA, 36
Poland, 14
Mexico, 47
Czech Rep.,
452
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Illustrative Labor Costs[(2)]

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US$
2000
1500
1000
500
0
Germany UK France Canada US Spain Poland Czech Rep Romania Turkey Morocco Brazil China Mexico Vietnam India
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Proximity to major OEMs resulting in greater cost effectiveness, quicker product launches, and faster turn-around times – allows to serve customers in a timely manner
Transportation costs advantages vis-à-vis other competitors
Optimal warehousing to balance economies of scale and proximity to customers

Source: Company and Yole Dévelopement report titled “Analysis of Automotive Exterior Lighting – Landscape for Passenger Vehicles” dated March 8, 2021 (1) As of June 30, 2021 (2) Represents gross monthly minimum wages in US$ for 2019 as published by International Labor Organization in its Global Wage Report 2020-21

Classification : Confidential12

Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geo ra hies g p

FY2021 Consolidated Revenue[(1)] : INR 113 billion

Breakdown by Market Segment[(2)]

Breakdown by Segment

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Others Others
5.0% 1.9%
Metallic
5.4% Global
Lighting
Electrical Business
10.3% 66.2%
2W / 3W
32.5%
Polymer
13.1%
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Passenger
Vehicles (4-
wheeler)
65.6%
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Breakdown by Geography

Breakdown by Customer

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Others Customer C (9)
1.5% 5.7%
Asia Europe Customer F(8) Others
Pacific(5) 49.4%(3) 15.5% 39.7%
2.5%
North
America(4)
14.4% Customer B(7)
9.8%
Customer A(6)
India Bajaj
11.2%
32.2% 18.0%
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Comprehensive range of engine agnostic products
Comprehensive product portfolio and end-to-end enabling “One-stop shop” for customers
Presence across fast growing India 2W and Global PV lighting market segments
Diversified business in developed and emerging markets with strong India presence
Diversified customer base
- with no single customer / OEM representing >20% revenue share
(1) Excludes China JV which is accounted for via the equity method
(2) Represents total invoice amount
(3) Includes the Czech Republic, Bulgaria, France, Germany, Italy, Poland and Romania, Morocco and Turkey
(4) Includes the USA and Mexico
(5) Includes Vietnam, Taiwan and China (6) Customer A is an American multinational car manufacturer (7) Customer B is a large British car manufacturer
(8) Customer F is a global automotive manufacturer headquartered in Europe (9) Customer C is an American electric car manufacturer

Classification : Confidential13

Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geo ra hies g p

Global Business with Diversified Product Lines – Diversified Product Portfolio catering to 2W, 3W, PV, CV and OHV Segments

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Global Lighting Head Lamps Rear Lamps CHMSL Fog Lamps
Business
 Broad portfolio of  Passenger
PV and Exterior lighting  15 facilities Vehicles (PV) 66.2% [(2)]
Global 2W / systems for Matrix Xenon globally
vehicles LED Light Guides  2-Wheelers (2W)
Small
Lighting
LED with AFS
India Business
 Full product
 13 facilities in
Polymer range of polymer
India [(1)]
solutions
Air Filter Assemblies Mirror Assemblies Seat Assemblies Trims (Interior Painted Plastic
and Door) Exterior Products
 2-Wheelers (2W)
 Comprehensive  3-Wheelers (3W)
Electrical and range of  9 facilities in
solutions in Battery  Passenger 32.1% [(2)]
Electronics components and Body Speedo- Digital Mgmt. Electronic Traction India [(1)] Vehicles (PV)
switches & meter Instrument System DC DC Magneto Fuel Regulator & Motor & Onboard
assemblies CDI Cluster Offerings Converter Injection Rectifiers Controller Charger
 Commercial
 Precision forged Vehicles (CV)
and machined
parts for engines  4 facilities in
Metallic
& transmissions India [(1)]
Transmission
Gears Crankshaft Connecting Rod Planetary Gears Engine Valves Crankpins
 Engine valves
Other Business
 Earth moving
 Hot steel forged  2 facilities in
and Oil drilling 1.7% [(2)]
IMES parts Italy
industry
Undercarriage Drill bit Cones and Undercarriage
Links Heads Segments
Source: Company
(1) Pantnagar facility is included in Electrical & Electronics but caters to all 3 verticals of India business. Global 2W lighting business is part of VLS and domestic 2W lighting business is part of BSVI Products EV Products
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(1) Pantnagar facility is included in Electrical & Electronics but caters to all 3 verticals of India business. Global 2W lighting business is part of VLS and domestic 2W lighting business is part of Electrical and Electronics business (2) Represents proportion of FY2021 reveneus

Classification : Confidential14

Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geo ra hies ont’d g p (C )

End-to-end capabilities with presence across various levels of automotive and LED component value chain ranging from product conceptualization, designing, R&D and engineering, testing and validation, tooling, manufacturing and delivery

Global Lighting Business – Broad Portfolio on offer for PV OEMs Globally

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Headlamps
Xenon LED with AFS Matrix
Rear Lamps
LED
Light Guides
Electronics
Projector Headlamp Control Modules LED Module
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Broad portfolio of lighting technologies including Halogen, Xenon, LED, Matrix, MEMS, DMD, OLED, Flex LED and LED Pixel
Catering to the five product segments within external automotive lighting

India Business – Comprehensive Solution Provider to 2 Wheeler OEMs

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Diverse range of products catering to a wide variety of vehicle types across polymer, electrical and metallic segments
One-stop shop for customers enabling cross-selling
Launched BSVI components including Catalytic Convertor, Electronic fuel injections (EFI), ECU and upgrades to Magneto products
Ability to cater to emerging trends such as EVs
EV Products ready for 2W / 3W – Traction motor & controller, DC DC Converter, Onboard charger, Battery Management system

Source: Company

Classification : Confidential15

Strong Competitive Position in Attractive Growing Markets

Global Exterior Lighting Market for Passenger Vehicles Poised for Strong Growth[(1)]

(USD bn)

Exterior lighting market is expected to outgrow the growth of PV industry

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24.1 24.4 24.7 6.5%
23.4
21.6 1.3 1.3 1.3 4.5%
1.3
18.8 18.4 1.2 4.2 4.3 4.3 4.4 4.9%
1.1 16.9 1.1 4.0
1.0
3.7 3.5
3.3
17.8 18.5 18.7 18.9 7.1%
16.4
14.0 13.9
12.6
CAGR
2019 2020 2021 2022E 2023E 2024E 2025E 2026E
2020-26E
Headlamps Rear Lamps Others Total
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Exterior lighting market expected to grow at a CAGR of 6.5% during 2020-2026E, while PV industry expected to grow at 5.8% CAGR during the same period
Headlamp market is the largest and fastest growing market, compared to other lamps types, with a CAGR of 7.1% between 2020 and 2026
LED technology is rapidly gaining popularity as their cost decreases and efficiency, luminance, and package size improves

LED Technology – Increasing Market Share, Accounting for 90% of Global Lighting Market by 2022E[(1)]

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76%
84% 87% 90% 93% 95% 96% 97%
24%
16% 13% 10% 7% 5% 4% 3%
2019 2020 2021 2022E 2023E 2024E 2025E 2026E
Halogen & Xenon LED
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VLS brings to the market new technologies such as Surface LED, 3D lighting, Adaptive Front Lighting Systems, Matrix LED and Laser, which are high growth products
Increasing share of EVs in PV segment is also leading to higher LED penetration

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Varroc is well-positioned in Global Exterior Lighting Market[(1)]

6[th] largest global exterior automotive lighting manufacturer
Top three independent exterior automotive lighting players globally in 2020 (by market share)
Expanded its market share from 4.3% in 2016 to 5.6% in 2020

Global Exterior Lighting Market Share[(1)]

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Koito 27.6% 25.3% Koito
13.9% Marelli
Marelli 16.7%
12.8% Valeo
Valeo 14.4%
11.8% Stanley
Stanley 12.2%
10.1% Hella
Hella 10.5% 5.6%
4.3%
Others
20.5%
Others 14.3%
2016 2020
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(1) Yole Dévelopement report titled “Analysis of Automotive Exterior Lighting – Landscape for Passenger Vehicles” dated March 8, 2021

Classification : Confidential16

Strong Competitive Position in Attractive Growing Markets (Cont’d)

Strong Expected Growth in Indian 2W and 3W Markets[(1)]

Varroc is well-positioned in Indian Auto Component Market[(1)]

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2W Production Volume (mm units)
 2 [nd] largest Indian automotive component
 India is one of the
30.4 10.5% Company [(1) (2) ]
28.6 largest manufacturers
26.1 of 2W in the world  Strong and long-lasting relationships with key 2W
23.8
/ 3W OEMs in India
21.2
18.5  2W production
expected to grow at a  Varroc is well positioned to capture high growth
CAGR of 10.5% till 2W / 3W component market
FY26P
India Key Auto Component Players [(1) (2)]
 Domestic sales and
export estimated to
CAGR Motherson Sumi Systems
FY21E FY22P FY23P FY24P FY25P FY26P FY21E-26P grow at 10-12% and 7-
9% CAGR respectively Varroc
during the period
Bosch
3W Production Volume (mm units)
Bharat Forge
 India has a large
1.13 13.5% Endurance Technologies
1.08 domestic market and
1.03
0.96 export base of 3W Minda Industries
0.78
 3W production Sundram Fasteners
0.60 expected to grow at a
CAGR of 13.5% till Minda Corporation
FY26P
Wheels India
 Domestic sales and
Rane Holdings
export estimated to
CAGR
FY21E FY22P FY23P FY24P FY25P FY26P FY21E-26P grow at 11-13% and 2- JBM Auto
4% CAGR respectively
during the period
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(1) CRISIL Research – Industry Review – Auto Components released in February 2021 dated February 2021

(2) Based on consolidated revenues. Excludes Sundaram Clayton which is the holding company of TVS Motors Ltd., which is into sales of two and three wheelers and is included in Sundaram Clayton’s consolidated revenues

Classification : Confidential17

Well Positioned to Capture Industry Trends Related Growth both Globally and in India

Strong Transition Trend Towards EV Driving Robust Growth Outlook for EV Passenger Vehicles[(1)]

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(million units)
30.8 35.1%
49.1%
24.0
12.5 28.8%
18.6
10.1
14.2
8.2 6.0 37.3%
10.4
6.6 4.8
7.4
3.8
5.1 5.1
3.9 2.8 12.3 43.0%
2.70.91.4 1.42.2 2.03.3 4.7 6.6 9.1
CAGR
2020 2021E 2022E 2023E 2024E 2025E 2026E
2020-26E
BEV PHEV HEV FCEV TotalTotal
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BEV and PHEV Penetration – as a % of PV Volumes[(1)]

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23%
18%
14%
10%
8%
6%
4%
2020 2021E 2022E 2023E 2024E 2025E 2026E
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Transition towards EV expected to gain significant momentum within the PV industry
EV volumes expected to grow from 5.1 million units in 2020 to 30.8 million units in 2026E, representing a CAGR of 35.1%, far outpacing the 5.8% CAGR for overall PV volumes during the same period
BEV and PHEV expected to grow at a CAGR of 43% and 37.3% CAGR between 2020-26E and will account for 23% of global PV market volumes
Exterior lighting market for EV was estimated at US$ 687 million in 2020 with Varroc being the 2[nd] largest player globally with a market share of 14%

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Valeo
Others
17%
Global EV 24%
Varroc
automotive 14%
Koito
exterior lighting
9%
market 2020: Hella Marelli
US$687 million 10% Xingyu 14%
12%
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Increasing share of EVs in PV segment will continue to support higher LED penetration in exterior lighting (optimization of battery consumption)
Varroc is expected to benefit from these trends given its strong relationship with top EV OEMs as well as comprehensive product portfolio of LED lighting

(1) Yole Dévelopement report titled “Analysis of Automotive Exterior Lighting – Landscape for Passenger Vehicles” dated March 8, 2021

Classification : Confidential18

Well Positioned to Capture Industry Trends Related Growth both Globally and in India (Cont’d)

Supportive Trends Apart from Strong Expected Growth in Indian 2W / 3W Markets

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BS VI Transition –

Increasing content Electronic Fuel Injections (EFI) All Magneto Products per vehicle & Other products transitioned to BS VI

All Speedometers transitioned to BS VI

Transition to

Electric

Vehicles Traction Motor & Battery Management Telematics DC-DC On-Board Controller System (BMS) Converter Chargers EV adoption Growing Demand for Government policies (FAME II Production Linked to witness a electric 2W and 3W incentives for lithium battery electric Incentive Scheme for steady rise (increasing penetration) vehicles + Phased Manufacturing Plan) automobile industry

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2W EV market expected to grow at ~72% CAGR over FY21E- 3W EV market expected to grow at ~83% CAGR over FY21E
FY26P [(1)] – FY26P [(1)]
(‘000 units) Total EV Vehicles EV Penetration (%) 2,464.8 (‘000 units) Total EV Vehicles EV Penetration (%) 207.4
Rising EV 2,200.7
penetration 7.7% 8.1% 133.9 18.4%
in 2W and 1,306.0 101.9
3W 713.7 5.0% 68.2 9.9% 12.4%
166.1 339.2 3.0% 10.2 20.3 7.1%
0.9% 1.6% 1.7% 2.6%
FY21E FY22P FY23P FY24P FY25P FY26P FY21E FY22P FY23P FY24P FY25P FY26P
Traction Motor Battery Management DC-DC On-board
Traction Motor [(1)] Controller [(1)] System (BMS) [(1)] Converter [(1)] chargers [(1)]
2W EV (INR bn) (INR bn) 14.0 (INR bn) (INR bn) (INR bn)
components 9.6 10.2 9.1
to
6.3
5.4 5.4
experience 4.3
3.0 3.0 2.3 2.7
significant 0.4 0.8 0.6 1.3 0.3 0.7 0.2 0.3 0.2 0.0 0.1 0.5 1.3
growth in
the coming
years
Volume
(mm Units) ~0.14 2.3-2.4 ~0.14 2.3-2.4 ~0.10 2.0-2.1 ~0.14 2.3-2.4 n/a 0.19-0.20
FY21E FY22P FY24P FY26P FY26P FY21E FY22P FY24P FY26P FY26P FY21E FY22P FY24P FY26P FY26P FY21E FY22P FY24P FY26P FY26P FY21E FY22P FY24P FY26P FY26P
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(1) CRISIL Research – Industry Review – Auto Components released in February 2021 dated February 2021

(2) Based on 2020 consolidated revenues, excluding TVS Motors

Well-positioned to Capture EV Trends in 2W / 3W market

For the specific EV components, market size expected to grow from ~INR 1.5 billion in FY2021 to ~INR 25.5 billion by FY2026 under base scenario
Varroc has strong longstanding relationships with key OEMs and is well positioned to capture high growth in the EV component market
All-round capabilities to manufacture 2W EV components
Varroc has developed 48V PMSM traction motor and has supply arrangement with one of the leading 2W OEM
Varroc acquired CarIQ and entered into exclusive manufacturing tie-ups with customers to capture the opportunities

Classification : Confidential19

Strong and Long-standing Customer Relationships

Global Lighting Business – Customer Relationships

 Multi-year relationships with many customers across business lines

[Global Lighting Business]
Major auto manufacturers across premium, mid-range and mass market pricing spectrum
Global presence and supply chain capabilities across geographies further strengthens customer relationships and repeat business

 [India Business]

All major 2W and 3W OEMs
Consistent delivery of quality products and relationships support ability to diversify across product lines
Repeat business from majority of customers a testament of relationship strength

 Continually work with customers on value engineering projects for cost optimization and saving sharing

 Recognized with numerous awards and testaments by customers for quality and delivery of products

OEMs	Length of relationship	Engagement across products	Engagement across products	Engagement across products	Engagement across products
		Head Lamps	Rear Lamps	Small Lamps	Electric Modules
Customer A (American multi- national car manufacturer)	Since 1995(+25 years)				
Customer B(Large British car manufacturer)	Since 2011(+10 years)			
Customer C (American electric car manufacturer)	Since 2013(+7 years)			
Customer D(international automotive manufacturer)	Since 2002(+15 years)			
Customer E(Large European car manufacturer)	Since 2001(+20 years)			
Customer F(Global automotive manufacturer with HQ in Europe)	Since 2016(+5 years)			

India Business – Customer Relationships

OEMs	Length of relationship	Engagement across products
	Since 1990(+25 years)	Across 3 business units and all 16 total product categories
Customer H(Leading Japanese 2W OEM in India for scooters)	Since 2005(+15 years)	Across 8 product categories
Customer I(Leading 2W OEM in India for motorcycles)	Since 2005(+15 years)	Across 12 product categories
Customer J(Japanese 2W OEM in India for motorcycles)	Since 2006(+15 years)	Across 8 product categories
Customer K(Japanese Auto OEM in India operating in 2W and 4W)	Since 2008(+10 years)	Across 7 product categories
Customer L(Leading 2W OEM in India for motorcycles)	Since 2014(+7 years)	Across 3 product categories and 2 more product categories under discussion
Customer M(Leading 2W OEM in India for scooters)	Since 2020(+1 years)	1 product category and 2 more product categories under discussion

Source: Company

Classification : Confidential20

Robust In-house Technology, Innovation and R&D Capabilities

R&D efforts are directed towards ongoing trends – Enabling product delivery to customers in line with industry developments

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Stricter
Increased Use Electrification
Environmental
of Electronics
Regulation
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==> picture [421 x 68] intentionally omitted <==

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

Autonomous Connectivity Digitalization Sustainability,
Driving and IoT Reliability &
Efficiency
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R&D Spend as % of Revenue (excl. China JV share)

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

R&D
5.4 5.3 4.6 1.3
(INR bn)
4.8%
4.5% 4.4%
4.1%
FY2019 FY2020 FY2021 Q1 FY2022
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R&D Capabilities Supported by Large Number of Engineers[(1)]

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

India,
588
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1,198 engineers globally

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

Others, 61
USA, 36
Poland, 14
Mexico, 47
Czech Rep., 452
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Across 15 R&D centers
Supports strong in-house R&D capabilities
Product development in key emerging technologies remains the focus

Global Lighting Business – R&D focus on providing cost effective solutions to OEMS

Indian Business – R&D focus on offering enhanced product portfolio

Focus on designing and developing technology solutions that are capable of being adopted by our customers across large product platforms
Ensure that product portfolio and solutions represent technological capabilities
Reduction in emissions and power consumption
Better style and personalization
Safety and enhanced communication
Focus on developing proprietary products with continuous focus on innovative and cost effective designs
Seek to capitalize on industry trends, including in particular moves towards emission reduction, autonomous driving, electrification, shared mobility and connectivity
New technology tie ups for development of catalytic converter and electronic fuel injection systems
6 valid patents and filed 39 patent applications as of June 30, 2021
167[(2)] valid patents and filed 144 patent applications as of June 30, 2021

(2) Including two patents licensed from a third-party

Source: Company (1) As of June 30, 2021

Classification : Confidential21

Robust In-house Technology, Innovation and R&D Capabilities (Cont’d)

Product portfolio representing

technological capabilities:

 Energy efficiency

C02 emission and power consumption reduction
Style and personalization
Larger lit surface at front and at back side
Seamless Light integration in bumper
Comfort and Safety
Maximum lighting with minimum impairment for others drivers
Identification Of Vulnerable Road User
Communication
Emergence of AV
Communication clearly vehicle intention

Technology development focus on:

Return on investment
Affordable technology to mass market
Mid term technology exploration with selected premium OEM and partners
OLED
Laser Diode and Other light sources
Lit Logo
Manufacturing technology

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Efficiency and Safety and Style &
Communication
Cost Comfort Personalization
Bi-functional Module +
Low Cost LED Surface LED Signal Projection
ADB11 Segment
Affordable ADB
Efficient LED Dark Lamp HD Pixel Projecting
Opti-ADB
HD Pixel Projecting
Bi-functional Module Low Profile Projector
Opti Comfort Light
----- End of picture text -----

Source: Company

Classification : Confidential22

Experienced Management Team and Technically Skilled and Motivated Employees

 Experienced management team with deep industry knowledge

 Strong Board of Directors with 4 out of 7 being Independent directors

 Independent directors with experience across industries and practices

 Independent board committees

 Dynamic HR policies aimed towards employee skill development

 Technically skilled, diversified and effective workforce

 Continued employee training programs and optimized recruitment policy resulting in consistent upskilling of workforce

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and
Director
Chairman Managing
Directors
Independent Board of
Directors
Whole-time
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----- Start of picture text -----

Senior Management
----- End of picture text -----

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Tarang Jain

Chairman and Managing Director  Co-founded Varroc in 1988

==> picture [143 x 20] intentionally omitted <==

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

 Over 30 years experience in the
automotive industry
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Marc Szulewicz

Independent Director

Ex executive vice president in-charge of plastic activities at Carnaud Metalbox, a Crown Cork & Seal Company

Vinish Kathuria

Independent Director

 Co-Founder and President of Rank Software Inc.

Arjun Jain

President – Electrical Business Unit and Whole-time Director  Previously associated with Bain & Co India Pvt. Ltd.

Sethumadavan D.

President – Polymer Business  Previously associated with Stanley Black & Decker, Schneider Electric, General Electric

T. R. Srinivasan

Group Chief Financial Officer

 Total Experience: ~32 years

Previously associated with Hindustan Lever Ltd, and Phillips India

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Gautam Khandelwal

Independent Director

Executive Chairman, Nagpur Power and Industries Ltd

Vijaya Sampath

Independent Director

Lawyer, ex-Group General Counsel for Bharti Airtel Ltd

Rohit Prakash

President – Business Unit Head (Metallic) and Whole-time Director  Previously worked with Sogefi Engine Systems India

[  ]*

President and CEO – VLS

Total Experience: ~24 years
Part of senior leadership team at a leading European PV lighting player

Kavita Kulkarni

Chief Human Resource Officer

Total Experience: ~27 years
Previously associated with Infosys Ltd, WNS and Mphasis

Source: Company *Joining from November 1, 2021 and to be based out of Europe

Classification : Confidential23

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3 Business Strategy

==> picture [842 x 118] intentionally omitted <==

Classification : Confidential

Business Strategy Focused on Revenue Growth and Increased Efficiency

I. Focus on Operational Efficiency
Continue to seek to improve efficiencies, streamline capacities and asset utilization and manage capital expenditure for each of the production facilities
Launched Project RACE in June 2021 to bring Global Lighting Business profitability in line with best-in-class industry benchmarks over 12-18 months
Implemented various initiatives to lower costs, such as purchasing raw materials in bulk to take advantage of promotions and economies of scale
Implemented total preventive maintenance (TPM) to help ensure high quality, low costs and on-time delivery for customers in India

II. Focus on High Growth Markets for Global Lighting Business

Alignment with key trends in global exterior lighting market for passenger vehicles – 6.5% CAGR growth during 2020-26; increasing penetration of LEDs and expected increase in share of EV in passenger vehicle market
Capitalize on global manufacturing presence, strong product capabilities and existing relationships with OEMs to capture these industry growth trends
Become a globally preferred lighting systems provider to automotive OEMs

III. Focus on Increasing Customer Revenue for India Business

Capitalize on current strong positioning in 2W / 3W components market to capture the overall expected growth in Indian 2W / 3W markets
Increase revenue with existing customers by expanding the array of existing products supplied and by continuing to develop technology solutions aligned with customers’ needs
Continued introduction of products and solutions catering for emerging trends in Indian auto market namely BS VI and EV penetration

IV. Continue to Invest in R&D, Design, Engineering and Software Capabilities

Committed to the drive for innovation and intend to continue expanding our R&D, engineering and software development capabilities in order to capture future growth trends
Seek to benefit from key trends in the automotive industry, including EVs, emission reduction and shared mobility
Expand capabilities in a cost efficient manner, by focusing on low-cost geographies near major automotive markets

Source: Company

Classification : Confidential25

Significant Capex Cycle Completed in the Last 4 Years

…Capacity completion coincided with a Sharp Slowdown in the Global Auto Industry[(1)]

Varroc Undertook Significant Capex Cycle Over FY2019 and FY2020…

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(INR bn)
9.1%
8.8%
10.9
9.8
5.6% 5.6%
4.5%
5.8
5.1
1.6
FY2018 FY2019 FY2020 FY2021 Q1 FY2022
Capex Capex as % of Sales
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----- Start of picture text -----

(INR bn)
68.9 71.4 69.3
64.9
3.6% -2.9% 57.1
-6.3%
-12.0%
2016 2017 2018 2019 2020
Global PV Market Volume Y-o-Y Change (%)
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Details of Key Capex Programs

MOROCCO POLAND Commencement of Q4 FY2019 Q2 FY2020 Operations Revenue run rate of €5.88 million per month as Revenue run rate of €6.71 million per month as Revenue at June 30, 2021 at June 30, 2021 Capex €55.40 million until June 30, 2021 €24.54 million until June 30, 2021 Balance capex is related to orders realized / to Balance capex is related to orders realized / to Balance Capex be realized be realized

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High capex over past three years was primarily a result of Global Lighting Business setting up three new plants, on the back of global order wins
Global PV industry expected to grow at a CAGR of 5.8% over the period 2020 – 2026[(1)]
Set up new manufacturing plants in Morocco, Poland, India, Brazil and new line in Czech Republic
Covid-19 related disruption and supply chain bottlenecks (semi-conductor shortages) have delayed ramp-up at these new facilities
Project RACE launched in June 2021

(1) Yole Dévelopement report titled “Analysis of Automotive Exterior Lighting – Landscape for Passenger Vehicles” dated March 8, 2021

Source: Company

Classification : Confidential26

Project RACE – Towards Continuous Improvement

Launched in June 2021, Project RACE is a holistic program that aims to bring Global Lighting Business’ EBIT levels in line with bestin-class industry benchmarks over a period of 12 to 18 months

Project Rapid  Involves multi-step process – Achievement  Comprehensive diagnostics, turnaround plan and quick Wins – assess key topline and bottom-line improvement levers of  European business turnaround implementation – execute the turnaround roadmap with clear focus on short, mid and long term Competitive initiatives Edge  Operating model redesign and implementation – setup of new target operating model including complete redimensioning of the (“RACE”) organization based on future growth scenarios

Global full potential plan – VLS Global 2030 full potential plan including topline and bottom line ambition and key strategic options

Customer – Pricing and Negotiations

Costs – Process Optimization

Review pricing and contract terms
Explore pricing and contract clause renegotiation across select customers and SKUs
Optimized S&OP processes
Freight management process
Customer and supply chain scheduling
Customer claims management and documentation
Application of best practices for pricing in future
Key Account Management best practices

Costs – Procurement, RM and Conversion

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Key Enablers

Inventory optimization and management

Capacity – Higher Utilization

Renegotiate terms with suppliers, contractors, third party spend
Vendor consolidation / Clean Sheet Costing
Zero Based Approach to Conversion costs
(e.g. productivity, scrap, layouts optimization, etc.)
Overhead Costs optimization (logistics, consultants, redundancy in headcount)
Increase wallet share with key customers to drive utilization
Key account management with Top-6 customers
Sales and channel excellence
Increase customer base
Drive access to new customers and orders through new innovative products and superior customer service

Source: Company

Classification : Confidential27

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4 Financial Overview

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Classification : Confidential

Summary Financial Performance

Revenues (INR bn)[(1)]

EBITDA (INR bn)[(1) (2)]

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129.7
120.4 (US$1,746mm)
113.0 11.5
(US$1,620mm) 111.2
(US$1,497mm) (US$1,521mm) (US$155mm)
9.2
(US$124mm)
6.8
(US$92mm)
5.2
(US$71mm)
(5) (5)
FY2019 FY2020 FY2021 LTM Q1 FY2022 FY2019 FY2020 FY2021 LTM Q1 FY2022
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Capex (INR bn)[(1) (3)]

Total Debt and Lease Liabilities (INR bn)[(1) (4)]

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

11.1
(US$149mm)
9.8
(US$132mm)
5.6 6.0
(US$81mm)
(US$76mm)
(5)
FY2019 FY2020 FY2021 LTM Q1 FY2022
----- End of picture text -----

Source: Company data

(1) Figures in brackets represents US$ equivalent amounts in millions. US$ equivalent calculated by using 1US$ = INR74.3 as the exchange rate as reported by FBIL on June 30, 2021
(2) EBITDA is Profit/(loss) before share of net profit/(loss) of investments accounted for using equity method, tax and exceptional items + Finance costs +Depreciation and Amortisation expenses.

(3)

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

42.6
(US$573mm) 36.9 37.8
(US$497mm) (US$509mm)
24.4
(US$328mm)
FY2019 FY2020 FY2021 Q1 FY2022
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Capex represents cash outflow for purchase of Property, Plant and Equipment

Total Debt = Non-current Borrowings plus Current maturities of long-term borrowings plus Current Borrowings (include lease liabilities)
LTM Q1 FY2022 is derived by adding figures for Q1 FY2022 to figures for FY2021 and deducting figures for Q1 FY2021

Classification : Confidential29

Key Credit Metrics

EBITDA Margin (%)[(1) (2)]

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

9.6%
8.3%
5.3%
4.6%
(6)
FY2019 FY2020 FY2021 LTM Q1 FY2022
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Total Debt[(3)] and Net Debt[(4)] / EBITDA[(1)] (x)

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

Total Debt / EBITDA Net Debt / EBITDA
7.1x
5.6x 5.5x
5.1x
4.6x
3.5x
2.1x
2.0x
(6)
FY2019 FY2020 FY2021 LTM Q1 FY2022
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Source: Company data

(1) EBITDA is Profit/(loss) before share of net profit/(loss) of investments accounted for using equity method, tax and exceptional items + Finance costs +Depreciation and Amortisation expenses.
(2) EBITDA Margin is EBITDA divided by Net Sales
(3) Total Debt = Non-current Borrowings plus Current maturities of long-term borrowings plus Current Borrowings (include

EBITDA[(1)] / Finance Costs (x)

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

11.9x
6.6x
4.3x
3.2x
(6)
FY2019 FY2020 FY2021 LTM Q1 FY2022
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Total Debt[(3)] and Net Debt[(4)] / Capitalization[(5)] (x)

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

Total Debt / Capitalization Net Debt / Capitalization
58.4%
56.8%
54.7%
52.5%
44.1% 43.7% 43.7%
41.2%
(6)
FY2019 FY2020 FY2021 LTM Q1 FY2022
----- End of picture text -----

lease liabilities)

(4) Net Debt = Total Debt less cash & cash equivalents, other bank balances and current investments (5) Capitalization = Total Debt plus Total Equity
(6) LTM Q1 FY2022 is derived by adding figures for Q1 FY2022 to figures for FY2021 and deducting figures for Q1 FY2021 except for Total Debt, Net Debt and Capitalization which are as of June 30, 2021

Classification : Confidential30

Debt Profile

Debt Profile as of June 30, 2021

Description	INR million	INR million	US$ million(1)	US$ million(1)
Non-current Borrowings
INR loans from banks / financial institutions_(Secured)_	4,009.89		53.97
Foreign currency loans from banks_(Secured)_	5,188.57		69.83
Deferred sales tax loan_(Unsecured)_	16.78	9,215.24	0.23	124.03
Current maturities of non-current borrowings
INR loans from banks / financial institutions_(Secured)_	1,352.31		18.20
Foreign currency loans from banks_(Secured)_	10,366.23		139.52
Deferred sales tax loan_(Unsecured)_	22.86	11,741.40	0.31	158.03
Current Borrowings
Cash Credit (Secured)	3.15		0.04
Working capital loans (Secured)	7,741.45		104.19
Factoring (Secured)	192.90		2.60
Short-term loan from financial institutions (Unsecured)	500.00		6.73
Commercial papers (Unsecured)	1,238.49	9,675.99	16.67	130.23

Total Borrowings		30,632.63		412.28

By Currency

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

INR
23% FCY
77%
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By Security

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

Secured
Unsecured 94%
6%
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Source: Company data

(1) US$ equivalent calculated by using 1US$ = INR74.3 as the exchange rate as reported by FBIL on June 30, 2021

(2) Represents short-term borrowings in the nature of working capital facilities, commercial papers, etc.

Classification : Confidential31

0 69 120

91 155 213

71 71 71

98 153 62

130 177 211 23 112 155

191 191 191

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

Our Core Values
----- End of picture text -----

Classification : Confidential

AI assistant

Varroc Engineering Limited — Investor Presentation 2021

61938_rns_2021-10-05_c5bd1c7b-02c2-480d-85f4-28f28e2d2cbd.pdf

Varroc Engineering Ltd.

Sub.: Intimation of schedule of meetings with institutional investors, analyst, etc.

Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’)

For Varroc Engineering Limited

Varroc Engineering Limited Investor Presentation

Disclaimer

Presenters

Tarang Jain Chairman and Managing Director

Table of Contents

 Two primary business lines

Summary Shareholding Structure[(4)]

Grown Rapidly Since Inception – Both Organically and Inorganically

Corporate Structure[(1)]

Varroc Engineering Limited

Balance 0.02% is held by the administrators of VLS Morocco; + Balance 0.01% is held by Varroc European Holding BV $ Balance 1% is held by VLS, CZ

Key Credit Highlights

Low Cost and Strategically Located Manufacturing and Design Footprint

43[(1)] Operating Manufacturing Facilities and 15[(1)] R&D Centers Across Asia, Europe, Africa, North and South America

26 Manufacturing Facilities for India Business



Low Cost and Strategically Located Manufacturing and Design Footprint (Cont’d)

Geographical diversification – Capitalizing on global growth opportunities while mitigating the impact of regional demand fluctuation

Global Lighting Business

India Business

Engineers by Country[(1)]

Illustrative Labor Costs[(2)]

Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geo ra hies g p

FY2021 Consolidated Revenue[(1)] : INR 113 billion

Breakdown by Market Segment[(2)]

Breakdown by Geography

Breakdown by Customer

Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geo ra hies g p

Global Business with Diversified Product Lines – Diversified Product Portfolio catering to 2W, 3W, PV, CV and OHV Segments

Diversified Business Across Product Portfolio, Market Segments, Customer Base and Geo ra hies ont’d g p (C )

Global Lighting Business – Broad Portfolio on offer for PV OEMs Globally

India Business – Comprehensive Solution Provider to 2 Wheeler OEMs

Strong Competitive Position in Attractive Growing Markets

Global Exterior Lighting Market for Passenger Vehicles Poised for Strong Growth[(1)]

Varroc is well-positioned in Global Exterior Lighting Market[(1)]

Global Exterior Lighting Market Share[(1)]

Strong Competitive Position in Attractive Growing Markets (Cont’d)

Strong Expected Growth in Indian 2W and 3W Markets[(1)]

Varroc is well-positioned in Indian Auto Component Market[(1)]

Well Positioned to Capture Industry Trends Related Growth both Globally and in India

Strong Transition Trend Towards EV Driving Robust Growth Outlook for EV Passenger Vehicles[(1)]

Well Positioned to Capture Industry Trends Related Growth both Globally and in India (Cont’d)

Supportive Trends Apart from Strong Expected Growth in Indian 2W / 3W Markets

Well-positioned to Capture EV Trends in 2W / 3W market

Strong and Long-standing Customer Relationships

Global Lighting Business – Customer Relationships

 Multi-year relationships with many customers across business lines

 [India Business]

India Business – Customer Relationships

Robust In-house Technology, Innovation and R&D Capabilities

R&D Spend as % of Revenue (excl. China JV share)

R&D Capabilities Supported by Large Number of Engineers[(1)]

Global Lighting Business – R&D focus on providing cost effective solutions to OEMS

Indian Business – R&D focus on offering enhanced product portfolio

Robust In-house Technology, Innovation and R&D Capabilities (Cont’d)

Product portfolio representing

technological capabilities:

 Energy efficiency

Technology development focus on:

Experienced Management Team and Technically Skilled and Motivated Employees

 Independent board committees

Tarang Jain

Marc Szulewicz

Vinish Kathuria

Arjun Jain

Sethumadavan D.

T. R. Srinivasan

Gautam Khandelwal

Vijaya Sampath

Rohit Prakash

[  ]*

Kavita Kulkarni

Business Strategy Focused on Revenue Growth and Increased Efficiency

Varroc Engineering Limited Investor Presentation 2021