#1OFF Flair FLAIR WRITING INDUSTRIES LIMITED Investor Presentation | Q3FY24 Flair GHAUSER® Germany pierre cardin PARIS Flair Creative ZOOX REDEFINE FUTURE#2Safe Harbor Flair This presentation and the accompanying slides (the "Presentation"), which have been prepared by Flair Writing Industries Limited (the "Company'), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections. All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness 2#3Successful IPO Listing Flair FLAIR WRITING INDUSTRIES LIMITED Flair INDUSTRIES LIMITED NSE NSE FLAIR WING INDUSTRIES UMITED Flair LISTING ON ASE FLAIR WRITING INDUSTRIES LIMITED NSE FLAIR WRITING INDUSTRIES UNITED FI 10:01 NSE SE NSE Flair NSE INDUSTRIES CITED ONSE INDUSTRIES LIMITED NSE Flair Shareholding Pattern (As on 31st December 2023) Flair Writing Industries Ltd (FWIL) got Listed on 1st December, 2023 10.2% 1.4% 78.6% 9.8% SE Initial Public Offer Details Listing done on BSE & NSE IPO Price: 304 per share (Upper Price Band) Listing Price: NSE 450.90 per share & BSE 452.70 per share Listing day gain of ~49% Flair Promoters DII FII Public IPO Subscription Category Times Subscribed QIB 122.02x Objects of the Issue: Proceeds of 292 crores to be utilized for - NII 35.23x . Setting up a new manufacturing facility • Funding capital expenditure & working capital requirements of the company & its subsidiaries RII 13.73x • Repayment/pre-payment, in part or full, of certain borrowings availed by the company & its subsidiaries (object fulfilled) General Corporate Purpose Total 49.28x 3#4Flair COMPANY OVERVIEW Flair HAUSER® Germany P pierre cardin PARIS Flair Creative ZOOX REDEFINE FUTURE W#5Flair At a Glance - Extensive Product Portfolio 699 # Of Products Largest Player in the pens segment in India by revenue-FY23 750 crs+ Largest Distribution Network in India Global Reach 130 crore pcs # Of Pens Sold 7,754 Distributors 315K Wholesalers & Retailers Among Top 3 players in the writing instruments industry with 915 crs+ sales in FY23 Strong Financial Position 9% Domestic market share* 97 countries Export Footprint Industry Leading EBITDA & PAT margins Flair® (FY 23) Healthy Geographic Mix in revenue 80%: 20% Domestic Exports Industry Leading RoCE and RoE (% of Revenue) 7% *954 crs * 184 crs Export market share* Total income EBITDA 19.5% EBITDA Margin 118 crs PAT 12.5% PAT Margin 31.2% ROE 31.2% ROCE Overall Installed Capacity of 2 billion+ pieces per annum as of Dec 2023 Retail Presence in 2,424 cities/towns / villages in India as of Dec 2023 Robust Growth of 14% CAGR in FY17 - FY23 period; beating industry trends Range of Steel Bottles launched with own manufacturing capabilities *Source: Crisil Industry Report 5#6Key Milestones 1976 Flair "Flair" brand was registered 2019 1998 We commenced production at one of our manufacturing units in Daman (UT of Dadra & Nagar Haveli and Daman & Diu) 2018 2008 2009 Introduction of Flair Calculators Manufacturing plant was set up in Dehradun (Uttarakhand) 2016 2014 HAUSER® Germany Flair® NPPI* acquired certain trademarks of the "Hauser" brand 2015 Flair Creative "Flair Creative" brand was registered "Flair Writing Equipments Private Limited" was incorporated as a subsidiary of our Company pierre cardin PARIS Acquired "Pierre Cardin" brand Our Company was converted into a public limited company Manufacturing plant was set up in Valsad (Gujarat) Our Company was incorporated upon conversion of M/s. Flair Writing Instruments Manufacturing unit was set up in Naigaon (Maharashtra) 2021 Flair Creative "Flair Creative" range of products was launched 2022 ZOOX® REDEFINE FUTURE "ZOOX" brand was registered Acquired shares of "Flair Cyrosil Industries Private Limited" and it became one of our subsidiaries 2023 IPO The overall installed annual capacity of writing instruments reached ~2 billion pieces Company got listed on NSE & BSE *National Pen and Plastic Industries ("NPPI") was one of the Erstwhile Partnership Firms, which was converted into FPPIPL on April 25, 2016 and subsequently merged into our Company pursuant to the Scheme. 6#7H HAUSER® Germany BUSINESS SEGMENTS HAUSER Germany XO Flair DHAUSER® Germany P pierre cardin PARIS Flair Creative Simply Perfect ZOOX® REDEFINE FUTURE#8- Segments Writing Instruments Market Presence Of Over 45 Years Extensive range of products across various price points and cater to a broad range of consumers, including students, professionals and offices Writing Instruments Finir Trendy Neo We manufacture and distribute writing instruments including pens, stationery products and calculators Flair® Products are sold under our "Flair" brand, "Flair Creative", our principal brands "Hauser" and "Pierre Cardin and Recently introduced "ZOOX" in India FWIL occupied a market share of 7.1% in the export of writing and creative instruments industry, in FY 2023 Company has the largest distributor/dealer network and wholesale/retailer network in India Flair DHAUSER® Germany P pierre cardin PARIS Flair Creative ZOOX® REDEFINE FUTURE 00 8#9Segments Creatives - Diversifying Beyond Pens Introduced "Flair Creative" in Jan'21 to tap into a newer market with potential to offer standalone & bundled Flair Creative Flair Creative Colo bubbl Kit 20.00 Per Kit Flair Criative KIT INCLUDES WAX CRAYONS, COLOUR PENCILS WOODEN PENCIL & ERASER Colourt bubble offerings Flair® "Flair Creative" crossed 100 crs+ of revenue within its 2nd year of operation Envision a higher growth segment driven by shifting consumer preference, portfolio deepening as well as channel fill Offerings include water colours, crayons, sketch, pens, erasers, wooden pencils, geometry boxes, fine liners, sharpeners and scales Greater control on quality with planned shift for in-house manufacturing of focused categories after market acceptance Flair ZOT Mechanical Pencil Flair Creative Luñata MAKE THE UNICORN PINATA Flair Creative Unicorn FREE CRAFT FREE 2.0mm MRP 235.00 Per Piece 0.7mm MRP 40.00 Per Piece www.flairworld.in Flair DHAUSER® Germany Flair P pierre cardin PARIS Flair Creative Unlimited Fun! 6 15.00 593333 999999 Tempera 12 25.00 COLOURS Flair Creative NON FREE One Brush W Flair Creative ZOOX REDEFINE FUTURE Fridget Flair Creative Finir MAGNETS 6 FRIDGE MAGNETS Picto ROCK PAINTING Flair Creative Picto 9#10Writing & Creative Instruments Industry Overview THE INDIAN WRITING AND CREATIVE INSTRUMENTS INDUSTRY IS POISED TO GROW STEADILY... Indian writing and creative instruments industry, by manufacturers realization (bn) Breakdown (by product) Market size of 138bn+ in FY23E at MRP; poised to cross 200bn by FY28E 83 70 5.6% CAGR 97 7.7-8.4% 140-145 38.3% 51 26% FY17 FY20 FY21 FY23 45% FY23 5% 24% 000 UT-O KEY DRIVERS Flair High proportion of young population Government initiatives 888 ■Pen FY28E Marker & highlighter Art & hobby Others Increasing share of private schools Growth in MSME sector workforce Premiumization ...WITH KEY ORGANIZED PLAYERS OUTPACING THE INDUSTRY CONSISTENTLY Organized players capture 78%-80% of the market Key 7 organized players have consistently outpaced the industry in FY17-23E period 52.7% 41.9% 38.3% 26.3% SUCCESS FACTOR FOR ORGANIZED PLAYERS Product differentiation Product innovation & packaging 8.6% 6.2% 5.6% 0.0% 8.7% 6.9% 5.5% FY17-20 CAGR FY21-23E CAGR (0.7%) FY17-23E CAGR Emphasis on low-priced units Strong distribution footprint Portfolio of corporate gifting products Key 7 organized players Overall organized segment Overall unorganized segment Overall writing & creative instruments industry *Source: CRISIL Industry report 10#11Key Trends within Each Category of the Industry GROWTH OUTLOOK FOR KEY CATEGORIES Pen Pen segment market size (INRbn) 43 FY23 CAGR 7.5%-8.5% Art & Hobby Art & hobby segment market size (INRbn) Flair® 62-65 • Strong drivers in place for the category's success Premiumisation Breakdown (by price point)* 5%-10% Mass 15%-20% • Shifting preference towards pens as a writing instrument 70%-75% Mid-premium Premium • Post COVID19 shift back to physical coaching centres FY28E • Reopening of offices & schools post COVID19 CAGR 38-40 24 10%-11% FY23 Others Other segment market size (INRbn) Key drivers Shift caused during COVID19 Emphasis on extracurricular activities Shifting preference of students towards arts Increased adoption of art as a hobby FY28E CAGR 25 45 33-35 5.5%-6% FY23 *Source: CRISIL Industry report FY28E NEW New products introduced to cater to young adults & working class Accessories •Driven by growth of total writing instruments • CAGR of 6.5%-8.5% from FY23-FY28E Markers & highlighters • Driven by young individuals entering workforce • CAGR of 5% - 6.5% from FY23-FY28E Pencil • Dominated by wooden variants • Players offering variants based on use 11#12Segments Steel Bottles - Leveraging Brand & Quality FCIPL (subsidiary) is engaged in manufacturing of steel bottles. Steel Bottles Plans to expand into domestic market with a particular focus on modern trade through pricing strategies and design Flair Flair innovation.. f Flair Flair Flair® We have received a letter of intent from one of our key OEM customers with whom our Company has a relationship of more than 15 years. Leverage the strength of the "Flair" brand, our manufacturing & distribution capabilities for houseware & steel bottles complemented by increasing product portfolio - we have 7 new products in pipeline For XHEXA Flair 12#13Steel Bottles Industry Overview Indian steel bottle market size (bn) 11 ~22% 38 14%-16% 75-80 Steel Bottles Industry Dominated By Unorganized Players Poised To Grow Rapidly Types of steel bottles Vacuum Steel bottles Non-vacuum Steel bottles FY17 FY23E FY28P Import Substitution Opportunity Import dependent category due to lower prices of imported products Manufacturing process is complex and capital intensive Limited number of companies engaged in in-house production BIS standard compliance now required for import of steel bottles *Source: CRISIL Industry report Flair® Market led by unorganized players Key drivers for the sector Breakdown (by player type) Organized 35%-40% FY23E Unorganized 60%-65% Flair's Foray Into Steel Bottles Exploring Domestic Opportunities while continuing OEM Manufacturing PRO STEEL Safer & hygienic versus plastic Environmentally friendly choice Offer durability & reusability Provides better insulation Flair's Right to Win Set up own manufacturing line and in process of expanding the same Possess technical know-how to manufacture quality bottles Design Innovations and in house colouring capability Already applied for BIS license, result awaited 13#14KEY STRENGTHS HAUSER® Germany HAUSER Sonic-Gel GERMAN TECHNO Germany HAUSER Sanic-gel GERMAN TECHNOL Germany HAUSER Sonic-Gel GERMAN TECHNO Germany HAUSER Germany HAUSER Germany HAUSER Germany HAUSER Germany HAUSER Sonic-Gel GERMAN TECHNO Germany Flair HAUSER® Germany P pierre cardin PARIS Flair Creative ZOOX REDEFINE FUTURE Simply Perfect#15Flair - Competitive Edge ☑ Flair Writing Industries Limited BRAND 自 KILID Flair Largest Player Largest player in the pens segment in India Diversified product Diversified product portfolio across various price points catering to a wide spectrum of consumers Largest distribution network Largest pan-India distributor/dealer network and wholesale/retailer network in the writing instruments industry and strong presence in targeted markets abroad Global Footprint Ability to partner with international brands and one of the largest exporter of writing and creative instruments in India Quality Manufacturing High-quality manufacturing at a large scale coupled with innovation capabilities Strong financial performance Historical track-record of strong financial performance with industry-leading profitability Experienced Promoters Experienced Promoters supported by professional senior management team 15#16Largest Player in the Pens Segment in India 01 T0 02 70 Delivered Strong Volume Growth 03 Number of pens sold in FY (in crs) +107.6% 130 Portfolio of iconic brands higher Largest player Market leader in the pens category in India with FY23 revenue of over 750 crs and 9%+ domestic market share Demonstrated growth Outpaced the industry with a CAGR of ~14% in FY17-23 when the market grew by 5.5% Flair WORLD CLASS PENS HAUSER® Germany 63 ® pierre cardin ZOOX® PARIS REDEFINE FUITLIRE FY21 FY23 Flair pens revenue (* crs) Hauser pens revenue (* crs) Pierre Cardin revenue (* crs) 96.4 +236% 323.6 184.3 33.5 +476% 193.0 76.0 14.1 1,729 SKUs Flair +33.5% 2,308 FY21 FY23 Revenue Breakdown (FY23) +272% 52.4 20.0% 35.7 80.0% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Brand Sales OEM 16#17Diversified Products - Across Price Points PRODUCTS ACROSS VARIOUS PRICE POINTS Expanding across price points 7 Expansion within each price segment is crucial to tap demand at various price points Flair WORLD CLASS PENS P pierre cardin PARIS HAUSER® Germany Premium (>100) Maintain leadership with higher margins Flair HAUSER® WORLD CLASS PENS ZOOX REDEFINE FUTURE Ⓡ Germany Flair® Mid-premium (16-* 100) Premiumization strategy achieving better margins and brand positioning PREMIUM Launched 151 pen products across various price points in FY23 out of which 71 mid- premium and premium pen and stationery products in FY23 Flair HAUSER® WORLD CLASS PENS Germany Mass (<15) Pricing & reach impact the volume growth Values for Market Segmentation sourced from Crisil Industry Report 17#18Expanding Product Portfolio led by Innovation in Product 1 Fair WOODY Fair WOODY Flair WOODY 2 Flair 3 Launched over 100 products since FY23 +30% Flair Wrilo meter H Гледаш орт JEH Flair Glitter Gel Pen has a metallic glitter ink effect Flair Woody Ball Pen has a wooden finish in plastic body Flair Writo-Meter Ball Pen our longest writing pen and writes up to 10,000 meters 4 HAUSER XO HAUSER XO Hauser XO Ball Pen offered in pastel colours 5 Colour 4Cola PEN Sunny Ball Pen has 4-in-1 pen 6 Fair Click Flair Cros-dick Fair Czee-click 804 699 676 619 FY 2021 9M FY2024 FY 2022 FY 2023 Number of Products in product portfolio Flair Czas click Fair Cree-cllc4 Ezee-Click Ball Pen a low-viscosity retractable pen Company's research, development and design efforts are enabled by its employees qualified in mechanical | engineering, operating moulds and tool and die making and skilled in computer-aided design and other software-designing applications. Flair focus on developing designs that meet consumer requirements based on market feedback. Its product design process involves various stages such as product design, prototype development and pen mould design. Flair aims to develop innovative technology and focus on innovative designing and automation 18#19Diversifying Portfolio - Moving Beyond Pens Flair's Strength LEVERAGING FLAIR'S STRENGTH TO SCALE NEW CATEGORIES - CREATING A LONG-TERM VALUE FOR THE BUSINESS Expansion Provides access to wider consumer base Flair® BRAND Premiumization Presence across price points Flair's brand strength Flair Higher margin products assist in Flair's premiumization strategy 7 Distribution network Flair Creative Introduced "Flair Creative" in Jan'21 to tap into a newer market with potential to offer standalone & bundled offerings "Flair Creative" delivered 112.5 crs+ of revenue in FY23, within its 2rd year of operation Manufacturing capabilities Competitive advantage Supports Flair's competitive advantage in the writing instruments industry BUILT A QUALITY PRODUCT PORTFOLIO FOR THE NEWER CATEGORIES Flair Criati Fair Flair A Flair Creative Steel Bottles & Houseware Products Forayed into manufacturing of a wide range of houseware products - bottles, storage containers, cleaning solutions, etc. CLUB Mar'23: Commenced the manufacturing of steel bottles. Received order from a key international OEM customer Vij Flair f Flair 19#20State-of-the-art Manufacturing Facilities கெ 11 Strategically Located Manufacturing Plants Dehradun (Uttarakhand) 2 units, 435mn p.a capacity Valsad (Gujarat) 3 units, ~578mn p.a capacity Naigaon (Maharashtra) 1 unit Increased Production Capacity To ~2bn Pieces Per Annum Effective production capacity (crs pieces) +13% 198 175 180 FY 2021 FY 2022 FY 2023 Flair Effective capacity utilization was 74.49% as of FY23. Given the wide range of colours and different moulds for a vast range of products coupled with several complex components, company can achieve effective capacity utilization in the range of 70% to 80%. Key Highlights Of Our Advanced Technology Daman (Dadra & Nagar Haveli and Daman & Diu) 5 units, 1,013mn p.a. capacity ~65% of the workforce consists of women across our facilities Introduced automatic and semi-automatic assembly and packing machines Use machines imported from Germany, S. Korea, China, Spain, & Switzerland to engage in high precision manufacturing Majority of our operational manufacturing plants are ISO 9001:2015 certified and ISO 14001:2015 certified Future focus: Upgrading technology & manufacturing with automatic assembly & packaging machine All manufacturing plants are in proximity to key transportation ports All manufacturing plants are fungible - most of our products can be manufactured at any operational plant* We have procured tip manufacturing machines to manufacture tips in-house & reduce dependance on external suppliers 20 20#21Pan India Distribution Network Largest distribution network* amongst key peers lends a strong advantage for Flair in the industry GROWTH IN DOMESTIC DISTRIBUTION NETWORK Wholesaler/Retailer count (lacs) 3.15 2.35 1.80 FY 2021 FY 2022 FY 2023 +75% Dealer/Distributor count 7,754 7,307 +38% 5,638 FY 2021 FY 2022 FY 2023 For sales and distribution in India, the company relies on a multi-tiered network comprising super-stockists, distributors, direct dealers, wholesalers and retailers. For exports, Flair engages with third-party distributors on a country-wise or region-wise basis. The company also operates an in-house super-stockist for the Mumbai region operated by the Flair Sporty division of the company. The marketing and brand-building initiatives have a 2-fold aim of reaching consumers as well as their distribution partners. ~25 years average Relationship with top 5 super-stockists Distribution Network by numbers (as of 31st December 2023) Retail presence In 2,424 cities, towns and villages in India 156 Super-stockists in India (including sporty division) 942 Team strength in S&M division *Source: CRISIL Industry report West 16.2% ZONE WISE SALES (9M FY24) North 34.2% South 33.6% Flair East 16.0% 21 21#22Globally Recognised Export Player with Long Standing Relationships FLAIR IS A GATEWAY TO INDIA FOR INTERNATIONAL BRANDS Enjoys trust & reliability with reputed international brands Long-standing relationships (15 years+) with leading international companies EXPORTS IS A SIZEABLE OPPORTUNITY FOR FLAIR Others 25%-35% Export of writing instruments FY18-FY23 Pens 65% -75% Known for high-product quality, customer service, manufacturing & engineering capabilities, and sales & distribution network From fiscal 2018 to fiscal 2023, India exported writing and creative instruments worth 18 billion per year on average, growing at ~9% CAGR. Of these, pens contributed 65-75% in value terms. Relationship with 54 international distributors & exporting to 77 countries across the globe Key brands for export markets: Key export Flair HAUSER pierre cardin Flair Creative ZOOX ESTONENTOS WORLD CLASS PENS Germany destinations (as of FY23): USA Japan UAE Yemen Colombia Demonstrated Ability to Partner with International Brands as a Relaible OEM Flair EXPANDING PRESENCE IN INTERNATIONAL MARKETS Export Sales (Crs) CAGR +31% 185 135 108 FY 2021 FY 2022 FY 2023 One of the Largest Exporters in the Writing Instruments Industry 22#23Advertisement and Promotional Activities Continue to enhance brand awareness and customer loyalty through mass media activities include brand ambassadors and celebrity endorsements, television and print advertisements and social media outreach and direct outreach activities comprise billboards, posters, etc. Launched advertisement campaigns through celebrity endorsements for our "Flair" and "Hauser" brands. SF Flair YOLO Flair BALL PEN Promotional expenses increased to improve brand visibility 14 12 10 % of revenue Advertisement Expenses (Crs) 0.8% 00 8 0.6% 16 4 1.3% 1.4 1.2 1.0 0.8 12.1 - 0.6 0.4 4.6 2 0.2 1.8 0 0.0 FY 2021 FY 2022 FY 2023 # be different Flair VOLO TULU BALL PEN HAUSER Germany Ball Pen tradinary Pe Flair Scan QR CODE 10.00 Per Piece 10.00 per piece Flair EMOVE www.flairworld.in MOVE" BALL PEN 回松回 Sen QR CODE www.flairworld.in WATERPROOF Flair® Flair MRP 20.00 per piece WOODY CLIQ BALL PEN Flair www.flairworld.in 回回 回 लिख के दूं क्या ? X-TREK BALL PEN 0.7 YOLO NXT GEL MRP 10.00 23#24Exhibition & Trade Fair Germany XOOX Piene Cardin PARD pierre cardin PARIS Fleir colat Flair Criation Flair gloo pierre cardin PARIS EXCLUSIVE METAL PENS Flasir Flair creenle Flair Criative Flair WORLD CLASS PENS ENT Flair HAUSE Germ DUST FREE ERASERS Flesir Flair Flair Flair Fair BEAN DOST IDCNS FLAR KENT Flair WORLD CLASS PENS MICRA DOST A YOLO Flair MERA FLAIR Flair For Smooth Hand Writing... YOLO is the best! YOLO BALL PEN - GEL PEN Flair UNIVERSI HAUSER Germany nic del HAUSER Flair Creative Unlimited Fun! 14 24#25Exhibition & Trade Fair Flair Designer Houseware FOOD OCLOCK Create Better Living pierre cardin PENS in FASHION PENS in FASHION ardin Piene Ca e cardin PENS in FASHION pierre cardin PARIS rdin ON Flair creative Unlimited Fun! Criative Flair Flair Creative Creative Flair Cris DRE criauße PENS in FASH Unlimited Fun! Flair HAUSER Germany Simply Purfict 25#26Product Launches - Q3 FY24 Piene Candy P pierre cardin PARIS FLORENCE Exclusive Set of Diary & Emperor Roller Pen BUASSH Cardly PARIE 84 pierre cardin PARIS COMET Ex Stay & PENS FASHION pierre cardin Piens Cardin Pine Cardin COMET of Story & Pets Re 8E 7438 NDIA Piens Cardin PA ASSPOR SSPORT เ Flair® pierre cardin PARIS NOTES Set of Notes Notebook Organizer & Royale Titanium Ball Pen Piene Cardin 26#27Product Launches - Q3 FY24 pierre cardin PARIS 1234567890120 ON/AC Picas Cardin Y CHECK MRC M+ M- 7 8 6 4 5 6 1 2 3 = Conquering THE DREAMS x Able P pierre cardin PARIS Able Flair YOLO NXT GEL MRP 10.00 Incl. of all taxes. r pierre cardin PARIS pierre cardin PARIS pierre cardin PARIS WHITE Set of Exclusive Calculator & Ball Pen Majestic SMOOTH WRITING EXPERIENCE WATERPROOF GELINK Flair 3in1 3 INK COLOUR ●●● BALL PEN BODY 5 Colours 30.00 per piece Blue Black Red 1 Pen Writes Flair 10.00 Per Piece SNOW 3in1 Flair MOVE EINE MOVER Majestic Set of Zipper Clutch & Emperor Roller Pen MOVE" BALL PEN 27#28Product Launches - Q3 FY24 HAUSER Germany HC-837MT DESKTOP CALCULATOR 12 BIG METAL Ⓡ ELECTRONIC MRP 112 AUTO *500.00 112 STEPS CHECK & CONDECT י -PACKING DETAILS 10 Pcs. Inner Carton 80 Pcs. Shipper 1234567890 M+ M- MRC CE 7 8 MU 9 GT 4 5 % 6 x 1 2 3 0 00 + 12 MONTHS WARRANTY HAUSER Germany HC-991MS SCIENTIFIC CALCULATOR HAUSER HC-991MS 99000900 SLIDE ON HARD COVER 730.00 CALCULATORS HAUSER HAUSER Germany 12345678902 HC-837MT 0006000 HAUSER KEY FEATURES .12 Digit Calculator .112 Steps Check & Correct • Dual Power • Auto Replay Big Display • Square Root Key Size: 120 x 150 mm HAUSER® Germany HC-750 DESKTOP CALCULATOR 12 750.00 ELECTRONIC CALCULATORS HAUSER Cermony HAUSER® Germany 12 12345678902 HAUSEN 123456789012 789 GT 456+ CE 123 + AC 000 10 Ps Inner Carton MONTHS WARANTY KEY FEATURES 12 Digit Calculator 112 Steps Check & Correct Auto Power Off Auto Replay Dual Power Grand Total Mark Up Protected Led & Solar Size: 130x165 mm. HAUSER® Germany ELECTRONIC CALCULATORS ELECTRONIC CALCULATORS HAUSER HORM HAUSER HC XO-837 DESKTOP CALCULATOR 12 112% BIG AUTO d/dX(X^X, 12: 5.1398574210 HAUSER 51398574213 COCESS HAUSER HC-991MS SCENTRIC CALDIATON 1234567890 12 HAUSSEN MRP 2425.00 ONAC HAUSER HAUSER Germany 123456789012 +0000 MRC (xM M+ ATTRACT 7 8 9 4 5 6 1 2 3 0 00 KEY FEATURES 10+2 Digit Calculator Matrix Calculations Dot Matrix 40 Scientific Calculations •Two Way Power • Size: 156 x 80 mm PACKING DETAILS 10 Pcs. Inner Carton 80 Pcs. Shipper PACKING DETAILS • Vector Calculations 10 Pcs. Inner Carton MONTHS 80 Pcs. Shipper WARRANTY • 2-Line Display • 401 Functions MONTHS WARRANTY -8 12 HCXO-837 HAUSER KEY FEATURES 12 Digit Calculator 112 Steps Check & Correct Dual Power Auto Replay Big Display ■Square Root Key Size: 120 x 150 mm HAUSER XO Flair XORD SALL PEN 10.00 per piece Xtraordinary Pens for an extraordinary you! HAUSER Germany 20.00 Per Piece HAUSER XO LOADED WITH JUMBO Refill HAUSER XO XtraOrdinary Pens for an extraordinary you! XO JUMBO BALL 28#29Product Launches - Q3 FY24 f Flair f Flair® Flair Flair Flair 29 29#30Experience at Helm - Board of Directors Mr. Khubilal Jugraj Rathod, Chairman He has 48+ years of experience in the writing instruments industry Flair® . Received the Lifetime Achievement Award and the Udyog Rattan Award from the Institute of Economic Studies, the Lifetime Achievement Award from The Bombay Fountain Pen Manufacturers and Traders Association, the award for the 'Most Admired Leader' from Herald Global, Inspirational Leaders of New India award from Powerbrands Glam, Las Vegas, USA. Mr. Vimalchand Jugraj Rathod, Managing Director • He is a fellow member of the ICAI and holds a B.Com degree from the Bangalore University • Has 40+ years of experience in the writing instruments industry Received "Asia's Most Promising Leader 2015-16" award from World Consulting and Research Corporation, "Award of Appreciation" from the Pen and Stationery Association of India and award from the PlastIndia Foundation Previously served as Chairman, Plastic Export Promotion Council & currently Chairman of Pen & Stationery Association of India Mr. Rajesh Khubilal Rathod, Whole-time Director Holds a B. Com degree from the University of Mumbai and has 33+ years of experience in the writing instruments industry He heads the international sales and marketing division along with global relationship development Mr. Mohit Khubilal Rathod, Whole-time Director • Holds a Bachelor of Arts degree (majoring in business administration) from the Muhlenberg College, Pennsylvania and has 23+ years of experience in the writing instruments industry He heads the product development, domestic sales and marketing division Mr. Sumit Vimalchand Rathod, Whole-time Director • Holds a Bachelor of Arts degree from the Eckerd College, Florida, a Post Graduate Diploma in Management from the S.P. Jain Institute, Mumbai and has 15+ years of experience in the writing instruments industry He heads the new business development, production, process and system management 30#31Experience at Helm - Board of Directors & Senior Management Team Mr. Bishan Singh Rawat, Independent Director • Holds a Bachelor of Science degree from Meerut University and a Bachelor of Laws degree from Garhwal University, Uttarakhand. He is enrolled with the Bar Council of Uttarakhand and is currently a practicing advocate Management Team Mr. Jatin Chadha, Chief Operating Officer Mr. Punit Saxena, Independent Director • He holds a Bachelor of Science degree, an MBA degree from University of Rajasthan, Master of Valuation (Real Estate) degree. He was previously associated with UTI Infrastructure, Technology and Services Limited (as its chief executive officer), Unit Trust of India, Jaipur Development Authority, Rajasthan State Industrial Development and Investment Corporation Limited. Mr. Rajneesh Bhandari, Independent Director Holds Bachelor of Technology in Chemical Engineering degree from the IIT, Delhi Has experience in the Health Care and Telecommunication Industry Mr. Manoj Vinod Lalwani, Independent Director . He holds a Bachelor of Engineering degree from University of Pune, Pune, Maharashtra and completed his Master of Science in Plastics Engineering from University of Massachusetts, Boston, USA He has experience in the field of manufacturing filler compounds for plastic polymers. Ms. Sheetal Bhanot Shetty, Independent Director • She holds a Bachelor of Arts degree and a Master of Arts degree from the University of Bombay, Mumbai, Maharashtra. Flair . He holds a Bachelor of Technology degree in I.T and engineering, a Master of International Business degree. . He is responsible for strengthening the operations vertical to improve the productivity of the Company Mr. Mayur Gala, Chief Financial Officer • • He is an associate member of the ICAI and holds Master of Business Administration (Part Time) (Finance)degree. He is responsible for the overall finance function in the Company Mr. Vishal Kishor Chanda, Company Secretary and Compliance Officer • • He is an associate member of the ICSI and holds a M.Com degree, a Bachelor of Laws degree both from the University of Mumbai He is responsible for the overall secretarial and statutory compliance in the Company 31#32Corporate Social Responsibility Flair Our CSR Policy is aimed at demonstrating care for the community and our commitment to create social value. Our Company has undertaken various active CSR initiatives to contribute to the community where we have operations. We believe in empowerment through employment - ~65% of our workforce is comprised of women. Supporting education through distribution of laptops, stationery to students from tribal and minority communities. Gifted a school bus to a school in Rajasthan. FLAIR WRITING INDUSTRIES LTD. CSR Activities at Swayam Siddhi Mitr Sangh Colleges Bhiwandi, Dist. Thane Annual Year 2021-22 Flair ENGINEERING WORKSHOP CSR ACTIVITIES Rar SWAYAM SIDOVER SANCH COLLEGES and Od Thane Annual Year-2020-21 FLAIR WRITING INDUSTRIES LTD. Cedre fe à se TATA 6) 32#33Awards Expert Flair® 2020-21 Award for Top Exporter to the Company from the PEPC in the category for writing instruments 2020-21 Award for Top Exporter to the Company from the PEPC in the category for writing instruments 2019-20 Award for Top Exporter to the Company from the PEPC in the category for writing instruments 2018-19 Export Award to the Company from the PEPC in the category for writing instruments (excluding parts) 2017-18 Award for Second Best Exporter to the Company from the PEPC in the category for writing instruments 2016-17 Award for No. 1 Exporter to the Flair Group of Companies from the WIMO The Borbay Fountain Pas Expert (11) Export 100 OF THE YEAR FLAIR AWARDED THE MONE NOUBLE BRAND 2014 CATEGORY: GEMS & JEWELLERY ACCESSORIES WCRC FLAIR PENS 2015-16 Award for No. 1 Exporter to the Flair Group of Companies from the WIMO 2015-16 Export Excellence Award for No. 1 Exporter to FPPIPL from the BFPMTA 2014-15 Award for No. 1 Exporter to the Flair Group of Companies from the WIMO 2014-15 Export Excellence Award for No. 1 Exporter to the Flair Group of Companies from the BFPMTA 2013-14 Most Valuable Brand 2014 award in the category of Gems, Jewellery and Accessories from WCRC 2012-13 Asia's Most Promising Brands from WCRC 2010-11 Award for No. 1 Exporter to the Flair Group of Companies from the BFPMTA 2009-10 Award for No. 1 Exporter to the Flair Group of Companies from the BFPMTA 2008-09 Award for No. 1 Exporter to the Flair Group of Companies from the BFPMTA 33#34Flair® WAY FORWARD Flair Flair HAUSER® Germany P pierre cardin PARIS Flair Creative ZOOX REDEFINE FUTURE W#35Strategy for Growth Flair® Product portfolio ○ Aim to strengthen and expand our existing product portfolio by growing across price segments • Leverage the ability to scale-up or refine product lines as per market demand Diversifying our product range by expanding into stationery products market Premiumization o Emphasis on Mid-premium Segment and Premium Segment to increase margins o Already set-up dedicated marketing team for "Pierre Cardin" and changed packaging Premiumization strategy already in play as growth witnessed in realization per piece Enhance capacity о Increase production capacity to drive further volume growth o Develop innovative technology О and focus on innovative designing and automation Intend to set up a new manufacturing facility at District Valsad, Gujarat K BRAND Strengthen presence o Expand to high margin markets Aim to further increase sales of the "Pierre Cardin" and "ZOOX" brands of pens in the Middle East markets o Exploring new exports horizon in Middle East, Japan & Latam for other segments Distribution network o Deepen sales & distribution network by strategic incentivization and product- specific schemes о Increase sales through each channel including e-commerce and modern retail, including hypermarkets, supermarkets О Team structure changed to ensure equi-focus on Pens & Creatives segment Strengthen brands Aim to strengthen and expand our existing product portfolio by growing across price segments o Leverage the ability to scale-up or refine product lines as per market demand о Conduct meaningful promotional activites via advertisements and trade fairs 35#36HAUSER Germany R FINANCIAL HIGHLIGHTS Flair HAUSER® Germany P pierre cardin PARIS HAUSER Celebrity HAUSER Flair Creative ZOOX REDEFINE FUTURE H Simply Perfect#37Q3 & 9MFY24 Management Commentary Flair 1 Mr. Vimalchand Rathod, Managing Director Commenting on the Results, Mr. Vimalchand Rathod, MD said, - "The quarter was a mixed bag with challenges on the OEM front and positives in our brands as we took some important business decisions. Revenue from our own brands remained our shining stars growing in both domestic & exports market throughout the year. Majority of our own brands experienced double digit growth; year to date, in domestic market thus going from strength to strength. The quarter was particularly well for Pierre Cardin & Hauser as customers continued to choose us as a quality & premium gifting option during the festive seasons. With 30 new product launches during the quarter, we have now crossed the milestone of adding more than 100 new products for 9MFY24 and is the largest increase in our portfolio since FY21. We remain very upbeat on the prospects of our steel bottles segments and to this effect we have decided to enter the domestic market through modern trade and the initial response looks very promising. We've also applied for BIS license for our steel bottles and are awaiting results for the same. With our OEM partners experiencing macroeconomic headwinds in the western economy, muted domestic demand combined with Red Sea crisis; it meant our OEM & export segment were affected due to lack of underlying demand from OEM partners. However, we are confident that this situation is transient in nature and remain hopeful of their demand revival in the upcoming quarters. We have a renewed sense of focus for driving overall business in our domestic and export markets through new tie-ups, business model, channel fill & expansion as well as backward integration of market accepted products. We've set our eyes towards new horizons in exports and are actively exploring avenues for growth in these markets. We remain steadfast on our vision to be the go-to brand for writing and creative products across consumer age and preference; building on the goodwill and trust garnered over the years. 37#389MFY24 Key Performance Metrics * in Crs Flair® Revenue from Operations Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 46.2% 50.5% 19.1% 19.3% 11.6% 12.3% +6.8% 682.3 728.6 315.2 +16.8% 368.1 130.1 +8.1% +0.4% 140.7 84.0 84.3 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 Financial Highlights Consolidated Revenue from Operations grew by 7% to Rs. 729 Crs Gross Profit increased by 17% to Rs 368 Crs as margin expanded from 46.2% to 50.5% EBITDA improved by 8% and reached Rs. 141 Crs at an EBITDA margin of 19.3% PAT stable at Rs. 84.3 Crs thus PAT margin at 11.6% • Operational Highlights Introduced 30 new products across different brands during the quarter, year to date we have 804 products in our portfolio Widened our distribution base by adding 11 super stockist in Q3FY24. Total count now stands at 156 super stockists. Sales and Marketing Team strengthened with 36 new personnel added to the previous headcount of 906. 38#39Q3 FY24 Key Performance Metrics in Crs Revenue from Operations Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 49.1% 50.5% 52.1% 22.9% 20.9% 257.0 126.3 53.1 53.8 231.9 117.2 117.3 224.9 15.4% 14.3% 34.5 Flair PAT & PAT Margin (%) 12.9% 8.4% 33.3 33.2 19.0 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 Q3 FY23 Q2 FY24 Q3 FY24 14% Brand Mix (Q3FY23) 86% Q3 FY24 Brand Mix Own Brand OEM 11% Brand Mix (Q3FY24) 89% 20% Geography (Q3FY23) 80% Q3 FY24 Revenue Mix Domestic Export 15% Geography (Q3FY24) 85% 39#40Q3 & 9MFY24 Key Highlights. Positives Challenges Flair® Our own brands experienced volume led growth in both domestic and export markets year to date - a testament of the continued support and acceptance by the consumers of our brands. The growth in the domestic market was in high double digits. The OEM business experienced degrowth on account of lack of offtake by our OEM partners as they themselves were affected by a sluggish US & European economy and the Red Sea crisis. As a further corollary - revenue from own brands grew year to date by double digits with Hauser experiencing very high growth. Pierre Cardin grew for the quarter on account of festive giftings. Despite pricing pressures, we managed to improve our gross profit margins sequentially as well as year on year for Q3 & 9MFY24. Gross Profit margin improved by 161 bps YoY & 299 bps QoQ to 52.1% for Q3FY24. Increase was more pronounced for 9MFY24 where margin improved by 432 bps to reach 50.5%. While a decrease in our topline put pressure on EBITDA & EBITDA margin - lower volume in OEM meant company could not effectively utilise its operating leverage Rise in Operating expenses dragged profitability- on account of heightened freight charges due to Red Sea crisis, rise in employee expenses as headcount expanded, increase in depreciation yoy as new assets were put to use 40 40#41Consolidated Profit & Loss Statement - Q3 & 9M FY24 Flair® Profit & Loss Statement (in crs) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY23 Y-o-Y Revenue from Operations 224.9 231.9 -3.0% 257.0 -12.5% 728.6 682.3 6.8% Cost of Materials Consumed 116.4 140.7 125.9 383.8 380.1 Purchase of stock-in-trade 1.7 1.8 2.2 5.0 4.1 Changes in Inventories of Finished Goods and Work in Progress -10.5 -27.8 2.6 -28.3 -17.2 Gross Profit 117.3 117.2 0.1% 126.3 -7.2% 368.1 315.2 16.8% GP % 52.1% 50.5% 49.1% 50.5% 46.2% Employee Benefits Expense 38.0 30.2 36.0 109.0 88.1 44.7 33.9 36.5 118.4 97.0 Other Expenses Share of Profit of Joint Venture (net of tax) EBITDA 34.5 53.1 -34.9% 53.8 -35.8% 140.7 130.1 8.2% EBITDA % 15.4% 22.9% 20.9% 19.3% 19.1% Depreciation and Amortisation Expense 9.5 7.1 9.0 26.8 20.2 Other Income 3.9 2.5 2.7 8.4 10.3 EBIT 29.0 48.5 47.6 122.3 120.2 -40.2% -39.0% 1.8% Finance Costs PBT 2.9 2.6 3.3 9.0 7.0 26.1 45.9 -43.1% 44.2 -41.0% 113.3 113.2 0.1% Total Tax Expense 7.1 12.7 11.1 29.0 29.3 Profit for the period 19.0 33.3 -42.9% 33.2 -42.7% 84.3 84.0 0.4% PAT % 8.4% 14.3% 12.9% 11.6% 12.3% 41#42Flair Flair Creative Flair OIL PASTELS ANNEXURE Flair DUR FREE Flair HAUSER® Germany pierre cardin P PARIS Unlimited Fun! Flair Creative ZOOX REDEFINE FUTURE#43Performance in Charts in Crs Revenues 298.0 +78% 577.4 942.7 EBITDA & EBITDA % PAT & PAT % in Crs 19.5% 16.9% 7.7% in Crs 12.5% 9.6% 0.3% 183.5 +182% 97.6 118.1 +992% 55.2 23.0 1.0 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 ROCE (%) 17.4% 31.2% 0.1% FY21 FY22 FY23 *Debt includes Current & Non-Current Borrowings and Lease Liabilities. Equity includes Net Worth ROE (%) 18.9% *Debt to Equity (x) 31.2% 0.53 0.41 Flair 0.28 0.4% FY21 FY22 FY23 FY21 FY22 FY23 113 43#44Historical Consolidated Profit & Loss Statement Flair Particulars ( in crs) Revenue from Operations Cost of Materials Consumed FY23 FY22 FY21 942.7 577.4 298.0 508.2 333.6 146.1 Purchase of stock in trade 6.2 4.7 4.8 Changes in Inventories of Finished Goods and Work in Progress -5.5 -30.2 15.6 Gross Profit 433.9 269.2 131.6 GP % 46.0% 46.6% 44.2% Employee Benefits Expense 117.3 87.8 58.4 Other Expenses 133.0 83.8 50.2 Share of Profit of Joint Venture (net of tax) EBITDA EBITDA % 183.5 97.6 23.0 19.5% 16.9% 7.7% Other Income 11.6 10.2 12.9 Depreciation and Amortisation Expense 27.3 24.4 22.4 EBIT 167.8 83.4 13.4 Finance Costs 9.0 10.0 11.3 PBT Total Tax Expense Profit for the year 158.8 73.4 2.1 40.7 18.3 1.1 118.1 55.2 1.0 PAT % 12.5% 9.6% 0.3% 44#45Historical Balance Sheet Flair® EQUITY & LIABILITIES (* in crs) Mar-23 Mar-22 Mar-21 ASSETS (in crs) Mar-23 Mar-22 Mar-21 (a) Equity Share Capital 46.7 23.3 23.3 (a) Property, plant and equipment 240.1 190.1 176.4 (b) Other Equity 388.3 293.6 238.3 (b) Capital Work-in-Progress 1.6 1.8 0.0 (c) Non-controlling interest 0.3 0.0 0.0 (c) Right-of-Use Assets 7.5 3.6 6.5 Total Equity 435.2 317.0 261.6 (d) Intangible Asset 2.0 2.4 2.7 Non-Current Liabilities (e) Goodwill 0.4 0.0 0.0 (a) Financial Liabilities Financial Assets (i) Borrowings 41.8 73.4 111.6 (a) Loans 0.0 0.0 0.0 (ii) Lease liabilities 6.8 1.4 4.4 (b) Other Financial Assets 5.6 2.2 2.0 (iii) Other Financial Liabilities 0.3 1.3 3.2 Deferred tax assets 0.0 0.0 0.0 (b) Provisions 6.3 6.1 5.3 Income tax assets (net) 0.1. 0.1 0.0 (c) Deferred tax Liabilities (Net) 9.6 9.5 10.2 Other Non-Financial Assets 16.4 5.1 6.6 (d) Other Non Current Liabilities 0.3 0.3 0.3 Total Non-Current Assets 273.6 205.2 194.3 Total Non-Current Liabilities 65.0 92.0 135.0 (a)Inventories 213.8 184.3 131.4 (a) Financial Liabilities (b) Financial Assets (i) Borrowings 73.8 52.9 18.7 (i) Investments 0.0 0.0 16.3 (ii) Lease Liabilities 1.1 3.0 3.2 (ii) Trade Receivable 170.7 147.0 115.8 (iii) Trade Payables (total of MSME & Other than MSME) 63.6 50.3 41.1 (iii) Cash and Cash Equivalents 0.8 0.3 0.7 (iv) Other Financial Liabilities 20.4 19.6 14.0 (iv) Bank balances other than above 0.0 0.0 0.0 Other current liabilities 10.9 7.7 2.3 (v) Loans 0.3 0.2 0.2 Provisions 7.7 5.6 4.8 (vi) Other financial assets 0.8 0.3 0.2 Income tax liabilities (net) 6.5 9.4 0.1 (c) Other current assets 24.2 20.2 21.8 Total Current Liabilities 184.0 148.6 Total Current Assets 84.1 410.6 352.3 286.4 TOTAL EQUITY & LIABILITIES 684.2 557.5 480.7 TOTAL ASSETS 684.2 557.5 480.7 45 55#46Consolidated Cash Flow Statement Particulars (in crs) Profit before Tax Adjustment for Non-Operating Items Operating Profit before Working Capital Changes Changes in Working Capital Cash Generated from Operations Less: Direct Taxes paid Net Cash from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Net increase/ (decrease) in Cash & Cash equivalent Add: Cash and cash equivalents pursuant to business combination Add: Cash and cash equivalents as at 1st April Add: Net effect of exchange gain on cash and cash equivalents Cash and cash equivalents as at 31st March Flair® Mar-23 Mar-22 Mar-21 158.8 73.4 2.1 -36.3 -32.6 -28.6 195.1 106.1 30.8 -55.3 -60.3 29.8 139.8 45.8 60.6 -43.4 -10.8 -0.2 96.4 35.0 60.4 -73.6 -19.5 -15.8 -22.3 -15.9 -47.5 0.5 -0.3 -2.9 -0.1 0.3 0.7 3.6 0.8 0.3 0.7 46 46#47COMPANY: Flair Ⓡ Flair Writing Industries Limited CIN U51100MH2016PLC284727 Mr. Mayur Gala (Chief Financial Officer) Email: [email protected] www.flairpens.com INVESTOR RELATIONS ADVISORS : σ orient capital Orient Capital (a division of Link Group) Mr. Irfan Raeen +91 9773778669 [email protected] Mr. Devansh Dedhia +91 9930147479 [email protected] Flair HAUSER pierre cardin Germany PARIS Flair Creative ZOOX® REDEFINE FUTURE Thank You F