#1Data Patterns ( India ) Limited Investor Presentation Q4 and FY23 May 2023 DATA PATTERNS#2Disclaimer DATA PATTERNS This presentation and the accompanying slides (the "Presentation"), which have been prepared by Data Patterns (India) Limited (the "Company") solely for the 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. Certain statements in this presentation concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The Risk and uncertainties relating to the statements include, but are not limited to, risks and uncertainties regarding fiscal policy, competition, inflationary pressures and general economic conditions affecting demand / supply and price conditions in domestic and international markets. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable. 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. The Company does not make any promise to update/provide such presentation along with results to be declared in the coming years. Q4 and FY23 Earnings Presentation 2#3Agenda 1 CMD's Message 4 FY23 Order Book Build Up 2 FY23 Achievements 5 Financial Performance 3 Outlook for Next 2 Years 6 Corporate Overview DATA PATTERNS 3 Q4 and FY23 Earnings Presentation#4CMD's Comment on FY23 Performance DATA PATTERNS Mr. Srinivasagopalan Rangarajan Promoter, Chairman & Managing Director "This year we achieved excellent results with a 32% YoY growth in PAT. Our order book is up 94% at Rs 924 crores. We have also made significant investments on human capital and infrastructure during the last year. As communicated at the time of IPO, we have smoothened the business. Accordingly, the impact of Q4 on revenues have reduced from 70% in FY20 to 41% currently. As a result, we can see that full year growth is now more representative of our performance. Aligning with the sectoral opportunities, we are actively pursuing new product development. With the successful completion of the QIP of Rs.500 Cr., we have positioned ourselves for substantial revenue growth through new products in the domestic and international markets in the coming years.' Q4 and FY23 Earnings Presentation 4#5FY23 Highlights: Revenues up 1.5x; Highest ever order inflow DATA PATTERNS Strong order book as on 31st March 2023 at Rs 9,241 mn Revenue grew 46% YoY to Rs 4,534 mn EBITDA showed 22% growth at Rs 1,718 mn Gross Margins at 62% and EBITDA Margins at 38% Order inflow in FY23 of Rs 9,014 mn, grew 3x YoY PAT at Rs 1,240 mn, 32% increase YoY Revenue CAGR: 36%; EBITDA CAGR: 61% over FY19-FY23 Strong Balance Sheet; Net Debt Free Company Return Ratios - RoE and RoCE at 17% and 22% respectively without QIP funds Cash and cash equivalents - Rs 6,825 mn Rs 181 mn Dividend Paid; DPS was Rs 3.5 - New Manufacturing facility is commissioned in Q4FY23 Successfully completed QIP of INR 5,000 million funds to be utilized for new product developments (Radar, EW, Communication and satellite) Growth Drivers: Created additional world class infrastructure to deliver complete systems Government policies for Make in India Investment in complete products through QIP Proceeds Q4 and FY23 Earnings Presentation FY23 Recommended Dividend - Rs 4.50 5#6What We Look to Achieve in Next Two Years ○ Targeting larger opportunities in Radar, EW, Communication Systems and Satellite business ○ Expects to be a major participant for Rs20-30 bn worth of contracts in the next 3-4 years o Efficient execution to promote operating leverage; Should drive strong EBITDA and PAT margins ○ Exploring further opportunities in export market; Working in collaboration with domestic players Strong Topline Growth: 25%+ CAGR Sustainable High EBITDA Margins: ~40% Maintain Net Debt Free Status Maintain Strong Order Pipeline High Returns to Shareholders: ROE and RoCE - 20%+ Q4 and FY23 Earnings Presentation DATA PATTERNS 6#7Strategy for next phase of growth Model to Proprietary Product Development MOD Business Proprietary Products Compete in areas with Foreign OEM presence DATA PATTERNS Leverage existing competencies to mitigate product development risk Complete systems Key Differentiators for Data Patterns Capabilities 2229/10 • ° Leveraging existing competencies Leveraging existing competencies across target product categories with significant lead and vendor credentials Building Blocks in place for reuse across products and to crunch timelines and costs Focus on Key product categories with significant presence i.e Nano/Micro Satellites Radars, ESM and Communication systems Larger TAM for Data Patterns 1 MOD tenders open to industry 2 3 GOI committed to buy from Indian companies Increasing Indigenization Revenue Scalability and Sustainability Potential to bid for larger full systems contracts Re-use developed products for global expansion/ multiple programmes Better Margins Cost advantage given products developed in India Q4 and FY23 Earnings Presentation ☑ Make in India Advantage Alternative to foreign OEM products Cost advantage compared to players who may have to collaborate with foreign OEMS Better pricing can lead to better win rates Products developed in India - better PWIN 7#8Focus on Key Product verticals > 1 Product Satellite Existing Successful development DATA PATTERNS • Demonstrated Capabilities Designed and launched compete satellite in India Capabilities to design payloads like ESM, Imaging (RF and ESM), other remote sensing, others Comprehensive exposure to Ground stations including Radars and Command control, high speed communication links, etc Implemented capabilities for large satellites Potential Opportunity Large market for Defence and LEO satellites (Domestic as well as International) Focus on Micro Satellites Being Made in India - its cost effective Nano Satellite Antenna Tower Satellite Integrated Testing Satellite Internal View Thapsat Satellite 2 Radars Designed building blocks to complete radars systems in India Re-use already developed building blocks to meet timelines Building Blocks in Signal Processing, Antenna, Transmit/Receive modules, etc. . VHF, S, C and X Band, Gimbal, algorithms, Radar display, consoles, etc Focus on Fire Control Radars, X-Band Radars and smaller Radars for UAVs Cost competitive with in-house IP Export Potential Existing Successful development Single Board Computer-Next Gen Wide Band Digital Receiver DTRM Antenna PCB Antenna Assembly fixture Q4 and FY23 Earnings Presentation 8#9Focus on Key Product verticals > 3 DATA PATTERNS Product Electronic Surveillance & Monitoring Demonstrated Capabilities Developed state of the art ESM Receivers from 1MHz to 40GHz Both COMINT and ELINT including DF can be used in • Truck Mounted Systems / UAV Based ESM Systems . POD based jammers / Comm Jammers / Stand Off Jammers Potential Opportunity Potential large market with future tenders Requirement across Army, Air Force and Navy Existing Successful development 4 Communication Systems Existing Successful development • 041 261 Radar Warning Receiver ELINT DF System V/U/SHF Monitoring Receiver VHF/UHF/SHF Receiver Processor Exciter 5 Channel Search Receiver Developed SDR Platform for • Fighter Aircrafts • Radio Relay for Airborne Platforms/UAVs Satcom Antenn • Radio Relays Communication / Data Link Military Radars, Radio Relays, etc. are being procured under emergency Fast Track procurement Large volume requirements Requirement across Army, Navy and Air Force Programmable Radio Hardware Platform Type I & II Radio Relay 9 Q4 and FY23 Earnings Presentation#10Order Book Buildup in FY23 Orders as on 31st March, 2022 Rs 4,762 mn Order Book as on date is Rs 9,241 mn DATA PATTERNS + New Orders in FY23 Orders Executed Order Book as on 31st Mar 2023 Rs 9,014mn Rs 4,535mn Rs 9,241mn Current order book Rs. 10,080 mn including the orders finalised in Apr and May 2023 We are participating in large value tenders with MoD under Make 1 and 2 categories. Q4 and FY23 Earnings Presentation 10#11Q4 and FY23: Financial Performance DATA PATTERNS Particulars (Rs. Mn) Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Revenue from Operations 1,851 1,705 1,118 4,534 3,108 Gross Profit 1,070 1,108 742 2,825 2,247 Gross Profit Margin (%) 58% 65% 66% 62% 72% EBITDA 733 875 470 1,718 1,409 EBITDA Margin (%) 40% 51% 42% 38% 45% Depreciation/Amortization 22 19 21 84 66 EBIT 711 856 449 1,634 1,343 EBIT Margin (%) 38% 50% 40% 36% 43% Other Income 38 25 19 92 40 Finance Cost 28 35 21 77 110 PBT 721 846 446 1,648 1,273 Tax expense 168 230 113 408 334 Profit (Loss) for the period 554 616 333 1,240 939 PAT Margin (%) 30% 36% 30% 27% 30% EPS (Rs) 10.5 12.7 6.4 23.8 19.5 Q4 and FY23 Earnings Presentation 11#12Revenue: 1.5x in FY23 Revenue Q4FY23 and FY23 Rs 1,705 mn 9% Rs 1,851mn Q4FY22 Q4FY23 • Business Smoothened: Less Dependency on Q4 Rs 3,108 mn FY22 Annual Numbers are more representative of business than quarterly numbers Q4 and FY23 Earnings Presentation 1.5x Rs 4,534mn FY23 DATA PATTERNS 12#13Diversified Revenue Profile Revenue growth across all the three categories DATA PATTERNS Rs 1,705 mn Rs 1,851 mn 3% 37% 2% 41% Rs 3,108 mn 7% 25% Revenue in INR mn Rs 4,534 mn 5% 29% 66% 60% 56% 68% Q4FY22 Production Development Service Q4FY23 Q4 and FY23 Earnings Presentation FY22 FY23 13#14Order Book grew Exponentially Production ■Development ■Service Rs 8,880mn 6% Rs 9,241mn 5% 38% 56% Q3FY23 +4% 64% Rs.4,760mn 13% 25% 31% Q4FY23 62% FY22 + 94% DATA PATTERNS Rs 9,241mn 5% 64% 31% FY23 Developmental contracts/order book translates to strong production revenues Company is focussing on growth driver for medium and long term by taking several development contracts. Q4 and FY23 Earnings Presentation 14#15Q4FY23: Revenue Breakup Product Rs mn DATA PATTERNS Customer Rs mn ATE 338 BEL 25 AVIONICS 103 Brahmos 92 DoS 79 Nano Satellite 30 DRDO 784 Naval/ Naval System 28 Export 243 EW 274 HAL 1 Radar 1,000 MOD 566 Radar Processor 12 AAI 14 Others 47 AMC/Service 65 Total 1,851 Total 1,851 Q4 and FY23 Earnings Presentation 15#16Highest Ever Order Inflow Service ■Development ■ Production Rs 700 mn 5% 3.2x Order Inflows - Q4FY23 and FY23 Rs 2,212 mn 1% 77% Rs 2,890 mn 3% 49% 3.1x DATA PATTERNS Rs. 9,014 mn 1% 66% 52% 43% Q4FY22 33% 22% 48% Q4FY23 FY22 FY23 Major order received in Q4FY23 Major order received in FY23 Product Customer Order Type Value (Rs mn) Radar DRDO Development 830 Product Radar Customer Order Type Value (Rs mn) DRDO Development 4,489 EW DRDO Development 530 Avionics HAL Production 737 Tank DRDO Development 345 EW DRDO Development 530 ATE BRAHMOS Production 41 Tank DRDO Development 345 Avionics DRDO Production 68 FCS Brahmos Production 400 Q4 and FY23 Earnings Presentation 16#17DATA PATTERNS Robust Performance : Supported by Strong Financials Revenue (INR Mn) Gross Profits (INR Mn) and Margins (%) 1,705 1,118 882 684 Q4FY22 Q1FY23 Q2FY23 Q3FY23 EBITDA (INR Mn) and Margins (%) 51% 31% 875 34% 42% 470 302 213 65% 65% 1,851 1,108 Q4FY23 Q4FY22 65% 66% 742 572 442 Q1FY23 Q2FY23 Q3FY23 Net Profit (INR Mn) and Margins (%) 36% 21% 40% 616 733 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4 and FY23 Earnings Presentation 142 24% 30% 211 333 58% 1,070 Q4FY23 30% 554 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 17#18Investment in Business Investment in Our People Investment in Facility 11 DATA PATTERNS Investment in Technology 125 We hired 250+ staff in FY23 Plans to hire 100 more engineers in the next year Spent Rs 44 Cr on new facility The facility is operational from March 2023 onwards ✓ Successfully completed site acceptance test of 4 Precision Approach Radar. Nominated as Development and Production Partner for Dornier upgrade ✓ Actively pursuing new technology development with QIP Proceeds Q4 and FY23 Earnings Presentation 18#19al -840 DATA PATTERNS Corporate Overview#20Data Patterns - One of the fastest growing companies in the Defence and Aerospace Electronics sector in India... DATA PATTERNS Among the few vertically integrated defence and aerospace electronics solutions providers catering to the indigenously developed defence products industry 1 Vertically integrated defence and aerospace electronics solutions with end to end capabilities and a large addressable market Defence Aerospace 35+ Years of experience 2 Focused on in-house development and manufacturing facilities led by innovation and design and development efforts Products supplied for programmes Design to Delivery LCA-Tejas, Light Utility Helicopter, BrahMos missile Beneficiary of shifting procurement trends in Defence - Aatma 3 Nirbhar Bharat, Make in India, new defence acquisition policies among others TAM of USD 4.65 bn by 2030 growing at CAGR - 9% from 2020* Increasing indigenization, Domestic defence procurement, Higher share of electronics in warfare 4 Diversified order book with marquee customers along with state of the art manufacturing facilities 5 Experienced management team and skilled workforce Rs. 1,787 mn Order book as of Apr'18 CAGR 39+% Many senior personnel associated with Company for more than 2 decades Rs. 9,241 mn Order book as on March'23 1,130 employees with more than 700 qualified engineers 6 Excellent Revenue growth in FY23 with margins at normal expected level, EBIDTA margin, ROCE and ROE (FY23) amongst key Indian defence and aerospace companies 36% Revenue CAGR (FY19-FY23) 62% Gross Margin% (FY23) 38% EBITDA% (FY23) 22%* ROCE (FY23) 17%** ROE (FY23) One of the fastest growing companies in the Defence and Aerospace Electronics sector in India *addition of market size of specific industries from the DRHP ** Without considering QIP funds raised in March, 2023 Q4 and FY23 Earnings Presentation 20#21Evolving as a product company with a strong lineage 3 Decades of experience in defence & aerospace industry • • 2 ली Leading to development of multiple products in-house over the years • Developed a Fire Control System for Brahmos • Developed Glass Cockpit Displays / Avionics Designed & developed the launch pad countdown system Designed and developed Primary Surveillance Radar Developed ESM¹ receivers, Satellite and Ground Station 1 Focused on in-house development with end to end design capabilities > • • Producing 1,000+ building blocks that can be used on multiple end systems Development of complete systems / sub-systems across platforms space, air, land and sea 1. Electronic Surveillance & Monitoring • • 3 Investment in infrastructure and people to scale up Way Forward Rs 450 Mn spent on the new facility; Fully operational To double manufacturing space and infrastructure Hired 250+ employees in FY23 4 IPO: Dec 2021 Various product wins and healthy build up of order book • Breakthrough in end to end radar integration - Rs 3.6 bn order to develop space surveillance radar for DRDO Tender wins competing against large public as well as private Indian defence and industrial conglomerates L1 in Dornier Upgrade program in Radar and ESM Order book of Rs 8,880 Mn as of Dec-22 Q4 and FY23 Earnings Presentation DATA PATTERNS . 5 Product portfolio expansion leveraging existing building blocks Build on current product portfolio in areas such as • Radar • Satellites • Electronic Surveillance & • Monitoring (ESM) Communication • Develop capabilities for large order sizes 21#22Competencies built over the past 30+ years Reusable building blocks End-to-end capabilities DATA PATTERNS Produces 1,000+ building blocks that can be used on multiple end systems in defence and aerospace Among the few Indian company having design capabilities across the entire spectrum of strategic aerospace and defence electronics solutions¹ % Building blocks have laid the foundation of own products Setup the complete system from building blocks, designed in-house with IP Capabilities built over 3 decades Spreading out the development costs over multiple programmes Г COTS Components are fast becoming the building blocks of defence equipment Q4 and FY23 Earnings Presentation 1.. Basis F&S report on "Defence and Space Market" dated 29 November 2021 as included in the RHP In-house Design to Delivery Complete systems OOOO / sub-systems Across platforms - space, air, land and sea Mech. Engg. Processers Capabilities across Embedded Software spectrum of electronic solutions RF and Microwave Firmware 22 22#23With a Consistent Track Record of Profitable Growth 1,815 39%+~% growth CAGR FY19-FY23 Order Book 5,855 4,980 4,760 9,241 DATA PATTERNS ~ 36% Revenue CAGR from FY19-FY23 Revenue from operations 2,239 1,561 1,311 3,108 4,535 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 High Profitability Gross Profit 2,825 120% 100% 2,247 60% 1,535 60% 1,041 836 40% 20% 0% FY19 FY20 FY21 FY22 FY23 Q4 and FY23 Earnings Presentation ~ 61% EBITDA CAGR from FY19-FY22 EBITDA 1,718 1,410 919 432 257 FY19 FY20 FY21 FY22 FY23 23 23#24Growing Profitability Rs mn 77 210 DATA PATTERNS Improving PAT Lower debt levels/leverage Debt-Equity ratio Improving ROE and ROCE 556 1,240 939 0.45 0.39 0.16 23% 15% 12% 6% 0.01 0 ■ ROE ■ROCE 38% 33% 31% 24% 22% 17% * FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Q4 and FY23 Earnings Presentation *Without considering QIP funds raised in March, 2023 24#25Well Managed Working Capital Debtor Days and T/O Ratio DATA PATTERNS Creditor Days and T/O Ratio 1.3 1.3 1.4 1.6 1.2 8.3 9.0 308 44 286 270 40 254 233 FY19 FY20 FY21 FY22 FY23** FY19 FY20 Inventory Days and T/O Ratio 18.6 8.1 10.5 45 35 20 20 FY21 FY22 FY23 Cash Conversion Cycle* 2.6 2.4 362 339 278 286 275 1.5 2.0 3.0 241 186 155 141 120 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 *Cash conversion days is after adjusting advance received from customers **Company has realized Rs. 831 Mn in April 2023 out of March receivables Q4 and FY23 Earnings Presentation 25#26Through Well-Invested and State of the Art Manufacturing Facilities Key features of manufacturing facility ~ 5.75 Acres Of land in Chennai, SIPCOT ✓ 100,000 class clean room ✓ area ~ 200,000 sq. ft Aggregate of built up area of manufacturing facility ~2.81 acres Land for proposed expansion Environmental Certification - JSS55555 - MIL-STD-461 MIL-STD-810 including for Highly Accelerated Life Test / Highly accelerated stress screening. ✓ Electronic assembly facility BGA repair work station with display Manual soldering certified to Space grade standards EMS assembly capacity of 600 boards per day Capability to handle complex boards with 22 layer, 6k components and 21k solder points Dedicated 70 work stations for testing modules and small systems Harness preparation of 2k points per day 20 Dedicated Mechanical assembly stations to assemble small and large systems and various others... Our systems and processes are subject to periodic audit by customer such as ✓ Indian Government Space Organization Hindustan Aeronautics Limited (HAL) Other Government departments Q4 and FY23 Earnings Presentation Expansion DATA PATTERNS Manufacturing facility at Chennai, India Existing Facility Enhancement 11 Large Systems Integration Hangar • Augmented Design & Development Facility • Complete Radar Integration • Additional Space For Design and Electronic Warfare Vehicle Integration Development Resources • Additional Test Facility • Clean Room for Satellite Integration • Augmented Environmental Test Infrastructure Additional EMS Line • Multi Ton material handling EMS Line Multizone Reflow Oven X ray inspection system 26#27Diverse Product Offering Category Commercial off the shelf (COTS) Select Product offerings COTS modules designed in context of reusable building blocks for building Military Category BrahMos Programme Select Product offerings Fire control systems Mobile autonomous launcher DATA PATTERNS Missile Checkout System Radar Warning Receiver • Airborne launcher and Electronics systems with a quick turnaround VPX Multi core SBC VPX Zynq MPSOC based Quad Core High Density DIU time H • Other electronic systems Air Version Launcher for Brahmos Sukhoi-30 Light Utility Helicopter Cockpit display Digital Direction Finder Avionics Avionics displays used on: Electronic Warfare Surveillance and intelligence gathering ("SIGINT") Light Combat Aircraft ("LCA"), Intermediate Jet Trainers Light Utility Helicopters ("LUH") Communicati ons, ATES and Satellites Underwater electronics / Communications / Other Systems Automated Test Equipment (ATE) Small and Nano Satellites Oceanography Product Automated Test equipment for INS Shikra Q4 and FY23 Earnings Presentation Airborne Radar Warning Receiver ** 60 Further divided into COMINT and ELINT Surveillance radars Weather radars Coastal Surveillance Radar Radars 27#28Over Last Three Decades Launch pad countdown system 2001 • Developed a Fire Control System for Brahmos Designed & developed the launch pad countdown system Mobile Aumour Launcher DATA PATTERNS TERLS Tracking Radar Wind Profile Radar Micro Satellite Designed wide open RWR and ELINT for airborne platforms C-Band Tracking Radar Fixed Wing Cockpit Displays Developed Glass Cockpit Displays/Avionics • Designed and developed complete Radar Capability Upgradation of Tracking Radars Developed RF and Microwave capabilities allow entry to building complete systems Data Patterns has a long history of association with India Space Organization. Data Patterns built a Nano Satellite which was deployed in 2017. Developed EW receivers, Satellite and Ground Station • • 2021 Initiated expansion of manufacturing facility with doubling of available floor area Building of capacity to handle large and heavy equipment and integration of large radars and mobile EW systems, satellite integration facility Fire control system for the BrahMos RF & Microwave Products Coastal Surveillance Radar (Dept. of Space) Q4 and FY23 Earnings Presentation Wideband Fast Scan receiver Real Time Monitoring Receiver V/UHF Monitoring Receiver V/UHF Search Receiver Precision Approach Radar Expanding capacity 28#29A De-Risked Business Model 5 Exports/Offsets Radars, Electronic Warfare, Fire Available Products/ Systems control systems, Avionics, Missile Seekers, Communications, Small satellites 1 Developmental Contracts DRDO Defence PSU Projects leads to Production / Repeat requirements Programs leads to Annuity requirements 4 Civilian Requirements Satellites and Wind profile radars Ability to build nano satellites • Wind profile radar similar to the radar developed by our company is now required by government meteorological department in the civilian space 05 XI 10 04 01 02 33 03 Q4 and FY23 Earnings Presentation DATA PATTERNS 2 MoD Tenders Available Products / Systems Partnership with OEM Requirements is for large numbers and longer timeframe 3 Indian Defence Eco-system Platform/ Weapon System Development Develop Sensors, Electronics, Avionics In-house . In partnership with OEM 29#30Progress around Defence modernization programmes DATA PATTERNS Dharashakti programme • . Received single vendor orders from DLRL for development and supply of all of the COMINT / ELINT search receivers, Direction Finder & Monitoring/Search receivers. In a position to be an OEM for the entire receiver systems Radar Warning Receivers / ESM Part of the Radar Warning Receivers / ESM for the Airborne Early Warning System ("AEW&C") to DLRL which has been fitted on the Embraer early warning radar developed by Centre for Air Borne System ("CABS") MI 17 Upgrades, Dornier Upgrades, Aerostat upgrades, • Expertise gained in the Dharashakti project would also position to cater for airborne COMINT and ELINT equipment for various upgrades of any new rotary wing programmes Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms . Likely to deliver Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms subject to flight testing. After flight testing, these can be fitted on the LCA MK IA on order as well as the Sukhoi 30 upgrades, attack helicopters, etc. Arudhra Radar Airborne surveillance radar Has delivered an airborne surveillance radar (all of the hardware) to LRDE (Testing completed) and will be likely inducted in Navy's Dornier upgrade and new helicopter programmes Expected to supply multiple units of AGRU/Arudhra radar C > Likely to generate revenues in the next few years based on the requirement projection of IAF 5) Ashwini LLTR Partner in development of these radars as a single vendor incl. TR modules, AGRU, signal processor, etc Expected to realise revenue in the next few years. Light weight ESM requirements • ESM capability will help in supplying products for Light weight ESM products which have a heavy requirement in mountainous borders as they are not adequately covered Q4 and FY23 Earnings Presentation 30#31DATA PATTERNS Well-Positioned to benefit from Make in India Opportunity Focused on designing & developing indigenized products making it a beneficiary of India's "AtmaNirbhar" defence structural reforms Focused on designing and building own products across the manufacturing value chain to developing products and sub-systems Well positioned to rapidly commercialise or scale-up a number of existing products or building blocks to end systems or complete solutions Concentrate on building complete systems from the building blocks and sub-systems already developed, provides a higher value addition while distributing development costs Defence Modernization Program Arudhra Radar Light weight ESM requirements Examples: Wind profile radar built for Cochin University of Science and Technology is the world's first 205MHz radar complete in house development Using the experience of working with DRDO and development of wind profile radar, the company successfully bid and won a contract of Rs 380Cr from Ministry of Defence for nine precision approach radars for Navy and Airforce which are currently at delivery stage Co Ashwini LLTR Airborne surveillance radar CoPhitcan-WITNES Developed and deployed our first Nano Satellite in 2017 Subsequently received contracts to build 2 more Nano Satellites Dharashakti programme Developed and supplied Military COTS type processor for DRDO Subsequently redeployed for other projects by various DRDO laboratories including in naval applications in ships & helicopters Radar Warning Receivers Q4 and FY23 Earnings Presentation 31#32Driven by Innovation Focused Business Model Focused on in-house development led by innovation and design and development efforts Building complete systems from the building blocks and sub-systems already developed Partner with customers through the life cycle of a product, from conception till deployment and thereafter DATA PATTERNS 450+ engineers, most of whom have served in design and development departments Track record of utilizing pre-developed building blocks and sub-systems in the development of complete systems Present programmes with building blocks Designed & Developed by Data Patterns... ... along with "Future Ready" products already designed and developed by the company Military grade processor modules, ➤ Cockpit displays, ➤ Actuator controllers for missiles and torpedoes, ➤ Flight control computers, ➤ Digital receivers and Airborne phased array radar Frequency hopping radio relays Up/Down radars converters Key Products manufactured and delivered by Data Patterns S.No Product(s) 1 Monopulse RF Seeker 2 X-Band Doppler Weather Radar Details Delivered prototypes to DRDO Prototype installed in Chennai for meteorology department 205MHz Wind Profile Radar for Installed at Cochin for a government owned university Next generation EW products 3 CUSAT Integrated EW solution for 4 Radar for Naval Utility Helicopter Prototype delivered to LRDE A Next-Generation Software Defined 5 Prototype developed for DEAL Radio for fighter aircrafts A Next-Generation Radar Warning 6 Prototype developed for DLRL Receiver for fighter aircrafts 7 A Next-Generation COMINT 8 9 Q4 and FY23 Earnings Presentation Precision Approach Radar Nano Satellite 10 Power PC Card 11 WBLRU Prototype developed for DLRL Delivered to AF Being delivered to industry 190 nos delivered to HAL Delivered to DRDO 32#33Servicing Marquee Clients Government Departments RD Ministry of Defence Indian government space organisation D Marqee customers in the Indian defence & aerospace ecosystem Indian DPSU भारत इलेक्ट्रॉनिक्स BHARAT ELECTRONICS BrahMos हिएलि HAL History of business continuity & reliable product service for marquee customers DATA PATTERNS Others KHM ANY THERE History of reliable product service for several customers Supplying products to Indian govt. space org. for 20+ years; which continue to be under AMC Products supplied to BrahMos operational from 2006 Invest in product development ensuring continuity of business Developed cockpit displays for LUH, which has potential to generate additional annuity revenues from the new units Products form critical components Launch systems for ground based BrahMos missile launcher, "take me home" displays for the Tejas Supply of products to prestigious defence projects in India Like LCA, the HAL Dhruv, LUH and the BrahMos missile programme Q4 and FY23 Earnings Presentation 33#34Led by a Highly Reputed and an Experienced Management Team DATA PATTERNS Mr. Srinivasagopalan Rangarajan Promoter, Chairman & Managing Director • • Over 3 decades of experience in business development, corporate affairs, finance and marketing B.Tech in Chemical Engineering from University of Madras, M.S from IIT, Madras Ms. Rekha Murthy Rangarajan Promoter, Whole Time Director Over 2 decades of experience in administration, facility maintenance, HRD, process engineering and special projects B.A from Bangalore University, M.A in applied Psychology from Madras University Mr. Vijay Ananth K Whole Time Director, COO and Chief Information Security Officer • • Over 2 decades of experience in software engineering and product management BCS from Manomanian Sundaranar University and Masters degree in computer applications from the University of Madras Associated with Data Patterns - 20+ years Mr. Venkata Subramanian Venkatachalam Chief Financial Officer Over 2 decades of experience in finance sector B.Com from Madurai Kamaraj University, Member of ICAI Associated with Data Patterns - 20+ years Mr. Thomas Mathuram Susikaran SVP - Business Development • • 21 years of experience in Business Development and marketing B.E from Madurai Kamaraj University and a Masters' degree of tech in electrical engineering, IIT - Madras Associated with Data Patterns - 20+ years • Q4 and FY23 Earnings Presentation Mr. Desinguraja Parthasarathy Chief Technology Officer • 32 years experience in product development • • B.E from University of Madras Associated with Data Patterns - 30+ years Ms. Prakash R Company Secretary and Compliance Officer • >10 years of secretarial and legal expertise in listed entities Post Graduate Law Professional and Member of ICSI ° Joined Data Patterns in 2023 34#35Well Rounded and Diverse Board > DATA PATTERNS Mr. Prasad Raghava Menon Non-executive, Independent Director • • Served as Managing Director of Tata Chemicals Ltd and Ex-Tata Power Company Ltd. • Bachelor's degree from IIT, Kharagpur Mr. Sowmyan Ramakrishnan Non-executive, Independent Director Ex-Executive Director and CFO of Tata • Power. • Bachelor's degree in technology (mechanical engineering) from IIT-M and a PG Diploma in Business Administration from IIM-A and M.A from Department of Oriental Studies and Research Mr. Vadlamani Venkata Rama Sastry Non-executive, Independent Director • • Retired Chairman and M.D of Bharat Electronics Limited and ex-Executive Director of Centre for Development of Telematics B.Sc and B.E in electronics and communication from Andhra University Ms. Anuradha Sharma Non-executive, Independent Director • Founder of H.R. Practice Private Limited. • Directorship in Peopable Advisory • Services Private Limited Graduate from Xavier School of Management Q4 and FY23 Earnings Presentation Mr. Mathew Cyriac Nominee Director • 23 years of experience in investment banking and private equity. • Previously associated with Blackstone • Advisors, Bank of America, DLJ Merchant Banking Partners and Credit Suisse Bachelor's degree in technology (mechanical engineering) from Anna University and Post graduate diploma in management from IIM-B (gold medalist) 35#36al DATA PATTERNS -840 Appendix#37Historical Statement of Profit and Loss Particulars (Rs. Mn) Revenue from Contract with Customers Other Income Total Revenue Expenses: a) Cost of materials consumed b) Changes in inventories of FG, WIP and SIT c) Employee benefits expenses d) Finance cost e) Depreciation / Amortization f) Other expenses Total Expenses Profit before tax Tax expense Profit(Loss)for the period Other Comprehensive Income Total Comprehensive Income for the year PAT Margin % EBITDA EBITDA margin% Return on Net Worth Total Debt Debt to Equity Q4 and FY23 Earnings Presentation DATA PATTERNS FY21 2,239.5 FY22 3,108.5 FY 23 4,534.5 26.0 39.6 92.2 2,265.5 3,148.1 4,626.7 629.8 915.9 1,941.4 74.3 -55.2 -232.3 484.2 623.5 794.9 145.0 109.9 77.4 55.5 66.3 84.5 131.4 213.9 312.4 1,520.2 1,874.3 2,978.3 745.3 1,273.8 1,648.4 189.6 334.1 408.4 555.7 939.7 1,240.0 -9.6 -11.5 -10.2 546.2 928.2 25% 30% 1,229.8 27% 919.4 1,409.9 1,718.1 41% 45% 38% 31% 24% 14% 332.2 67.7 7 0.16 0.01 0.00 37#38Historical Balance Sheet DATA PATTERNS Particulars (Rs. Mn) ASSETS Mar-20 Mar-21 Mar-22 Mar-23 Particulars (Rs. Mn) Mar-20 Mar-21 Mar-22 Mar-23 EQUITY AND LIABILITIES Equity Non-current assets (a) Share capital 17.0 17.0 103.8 (a) Property, Plant and Equipment 278.2 292.1 441.6 912.5 (b) Other Equity (b) Capital Work in Progress 173.0 13.5 Total equity and liabilities 112.0 1,518.0 2,060.7 5,641.3 11,558.8 1,535.0 2,077.7 5,745.1 11,670.8 (c) Intangible Assets 1.6 5.6 13.5 20.0 Liabilities Non-current liabilities (d) Right of Use Assets 53.7 34.4 19.7 187.9 (a) Financial Liabilities (e) Other Financial Assets 464.8 340.7 1,220.4 838.7 (i) Borrowings 5.5 97.7 7.3 2.6 Total non-current assets 798.2 672.8 1,868.2 1,997.7 (ii) Lease Liabilities 38.5 24.4 11.1 4.3 Current assets (b) Provisions 56.4 85.2 111.6 102.5 (c) Deferred Tax Liability (Net) 7.6 8.1 (a) Inventories 794.1 737.5 1,197.7 1,929.5 (d) Other Non Current liabilities 143.2 273.7 157.0 (b) Financial Assets Total non-current liabilities 251.2 489.0 287.0 1,306.8 1,416.2 (i) Investment 556.8 Current liabilities (a) Financial Liabilities (ii) Trade receivables 1,156.3 1,559.4 1,983.1 3,824.8 (i) Borrowings 600.1 234.5 60.4 4.6 (iii) Cash and cash equivalents 15.1 88.1 1,770.8 2,147.8 (ii) Trade payables 172.6 120.0 381.5 430.6 (iv) Other Bank Balances 3,297.5 (iii) Other Financial Liabilities 79.2 40.1 220.7 118.0 (iv) Lease Liabilities 20.8 15.2 13.2 13.4 (iv) Other Financial Assets 37.2 51.0 88.6 211.5 (b) Other current liabilities 224.7 246.4 226.8 664.4 (c) Other current assets 152.6 177.3 158.3 379.7 (c) Provisions 14.9 9.6 7.2 31.4 (d) Current tax Liabilities 55.2 Total current assets 2,155.4 TOTAL ASSETS 2,953.6 2,613.2 3,283.7 5,198.5 12,351.7 Total current liabilities 1,167.5 7,066.7 14,349.4 TOTAL EQUITY AND LIABILITIES 2,953.6 51.3 124.8 717.0 1,034.6 3,283.7 7,066.7 1,262.4 14,349.4 38 Q4 and FY23 Earnings Presentation#39Historical Cash Flow Particulars (Rs. Mn) Net Profit before tax Adjustments for: Add: Depreciation FY20 FY21 284.7 745.2 FY22 1,273.8 DATA PATTERNS FY23 1,648.4 54.6 55.7 66.3 84.5 Add: Interest And Finance Charges 133.4 145.0 109.9 77.4 Add: Liquidated Damages (LD) Written Off 12.8 44.6 Add: Unrealised Forex Gain/Loss 3.9 11.3 Less: Profit on sale of assets -1.8 -1.2 Less: Profit/Loss on sale of Mutual Funds -8.0 Less: Interest Income -25.6 -22.2 -39.8 -84.2 Operating Profit Before Working Capital Changes 445.3 922.5 1,426.9 1,774.0 Adjustments For Working Capital Movements: -282.4 -183.7 -621.4 -1,412.2 Cash Generated From Operations 162.9 738.8 805.5 361.8 Direct Taxes (Paid)/adjusted -28.4 -189.8 -283.6 -534.2 Net Cash flow From Operating Activities (A) 134.5 549.0 521.9 -172.4 Cash Flow From Investing Activities (B) 14.0 -27.5 -1,197.7 -3,831.6 Cash Flow From Financing Activities (C) Net Increase in Cash & Cash Equivalents (A+B+C) Cash & Cash Equivalent At The Beginning Of The Year Cash & Cash Equivalent At The End Of The Year -136.5 -448.6 2,358.6 4,381.0 12.0 72.9 1,682.8 377.0 3.1 15.1 88.0 1,770.8 15.1 88.0 1,770.8 2,147.8 Q4 and FY23 Earnings Presentation 39#40Core groups or departments for design and development of products DATA PATTERNS Department # of Employees Total Employee Strength Design & Engineering (D&E) Manufacturing 579 376 Support Marketing & Customer support 113 62 Total 1,130 700+ qualified Engineers out of 1130 Our senior members in hardware, design and development have been with us for more than 15 years Group/Department Hardware Development Department Software Development Department Mechanical Engineering Department CAD/CAM Group Algorithm Development Group Radio Frequency Modules Group Responsibility / Scope Design and development of all types of high-end and complex electronics modules and building blocks. Includes Single board computers, Field Interface modules, Communication Modules, Custom I/O Modules, Mezzanine modules, Signal conditioning modules etc. Design and development all types of embedded, real-time and application software. Includes devices drivers, Operating system porting, real-time data transfer, GUI application for various Operating systems and hardware. Design and development of all types of mechanical packaging, big structure systems and jigs and fixtures. Incudes standard ATR chassis, heat spreaders, structural and thermal analysis etc. PCB schematics, Artwork, signal analysis, power analysis, electrical wiring, all modules/systems performance, and maintenance statistics like MTBF etc. Includes up to 26 Layer PCB design, hybrid electrical interface design etc Design and development of various domain algorithms for RADAR, Electronic Warfare, Communication waveform etc. Uses all types of algorithm development including mathematical modelling, statistical modelling, feedback modelling etc. Design and development of all types of RF modules and sub-systems. Includes simple RF receiver/exciter, filters, upconverters/downconverters, synthesizers etc. Group/Department Responsibility / Scope Design and Development of product verticals as a system. DOMAIN Systems Groups Including RADAR, EW, Communication, ATEs, Fire-control systems, Satellite, Avionics etc. Production Department Electronics Manufacturing Services (EMS) Harnessing Group Mechanical Integration Group Project Management Group All the products are functionally and environmentally tested by this department. Includes testing of modules and sub-systems, wiring, mechanical assembly, and integration etc. Fabrication of all electronics modules. Including automated pick- n-place, manual soldering, conformal coating etc. Fabrication of all types of cable harness including internal wiring, external interface wiring, testing of cables for continuity, impedance etc. Assembly and integration of all types of mechanical parts. Including various types like LRU assembly, board assembly, system assembly, system integration etc. Responsible for Delivering all the orders both internal and external. Vertical integration of groups and product development responsibilities. Includes all types of projects from simple module delivery to full system delivery. Utilizes, project plan, metrics, GANNT charts, budgeting and control, optimal execution methods etc Q4 and FY23 Earnings Presentation 40#41Defence modernization programmes DATA PATTERNS Arudhra Radar • Expected to supply ~55 units of AGRU/ Arudhra radar • Likely to generate revenues in the next 3-4 years based on the requirement projection of IAF Light weight EW requirements EW capability will help in supplying products for Light weight EW products which have a heavy requirement in mountainous borders as they are not adequately covered, and the same has been prioritised due to the increased geo-political tension Ashwini LLTR • Partner in development of these radars as a single vendor incl. TR modules, AGRU, signal processor, etc Expected to realise revenue between $10-30 million in the next few years. Airborne surveillance radar • Has delivered an airborne surveillance radar (all of the hardware) to LRDE which is expected to be flight tested in the next few months and will be likely inducted in Navy's Dornier upgrade and new helicopter programmes Dharashakti programme • Has received single vendor orders from DLRL for development and supply of all of the COMINT search receivers, Direction Finder & Monitoring receivers. In a position to be an OEM for the entire receiver systems with likely revenues of $50 million on complete execution MI 17 Upgrades, Dornier Upgrades, Aerostat upgrades, • Expertise gained in the Dharashakti project would also position to cater for airborne COMINT and ELINT equipment for various upgrades of any new rotary wing programmes Radar Warning Receivers • Also a part of the Radar Warning Receivers for the Airborne Early Warning System ("AEW&C") to DLRL which has been fitted on the Embraer early warning radar developed by Centre for Air Borne System ("CABS") Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms Likely to deliver Next Gen completely wide open for LCA Mk IA and Sukhoi 30 platforms subject to flight testing. After flight testing, these can be fitted on the 83 LCA MK IA on order as well as the Sukhoi 30 upgrades (approximately 270 numbers), attack helicopters, etc. Q4 and FY23 Earnings Presentation 41#42Indian defence and aerospace industry is rapidly evolving into a self sustaining one DATA PATTERNS Competition at two levels for Data Patterns During development stage in DRDO requirements from small and medium size companies building custom solutions and/or integrating solutions around imported COTS products Indian defence suppliers - Anticipated Future Positioning Platform/Solution Focused BDL OFB L&T HAL Mahindra Defence Reliance Defence Tonbo Imaging Sub-system (end to end)/Integration focused We are poised to take up emerging opportunities Godrej and Boyce BEL Tata Advanced Systems Adani Aerospace Kalyani Strategic Systems Ltd Data Patterns Paras Defence Alpha Design Technologies From large corporates offering complete systems, often under a partnership with International OEMs, for products and programmes directly procured by the Indian government space organization Astra Microwave Centum Electronics Mistral CoreEL Technologies Subcomponents focused Q4 and FY23 Earnings Presentation Our products are developed to compete with international and domestic equivalents. Further, we offer end to end solutions to the customer Ability to offer wide range of products. We also have strong and balanced capabilities across 12 defence and aerospace segments 42#43Thank You Made in India with Pride 0000 00000000000000 2000 DATA PATTERNS 2080 UYQJU KPDDUYA IN643 TAIW For further information, please get in touch with: Samadrita Saha [email protected] M: +91 7506548571 Sheetal Khanduja [email protected] M: +91 9769364166 Q4 and FY23 Earnings Presentation ISSI 1831