#1HAVELLS HAVELLS INDIA LIMITED MAY 2022#2A WELL STACKED FMEG HAVELLS S LLOYD Well entrenched Brand • STANDARD PEO • • Mass Premium National Presence 5 Brands addressing markets and channels Self Reliant • >90% in-house manufacturing High level of automation and integration اللعبة HAVELLS LLOYD World of Experience NEW BERGO ELECTRONICS OST NO. 97AAAFN7300017W Widest Product Portfolio • 21 product verticals ~USD 15 bn addressable market Widely Distributed Omni Channel ~14,000 direct dealers ~210,000 retailers HAVELLS#3AN EVOLVING JOURNEY Commenced Business with Switchgears and Cables Got listed on Stock Exchange Acquired global business of 'Sylvania' Acquisition of 'Lloyd' consumer durable business 1958 1971 1993 2003 2007 2015 2017 Acquired 'Havells' Brand Foray into Electrical Consumer Business with Fans and Lighting Divestment 'Sylvania' Focus on expansion of domestic HAVELLS#4KEY MILESTONES ➤ Commodity to Branded ➤ Single to Multi product Large scale manufacturing to drive efficiency and quality Mass to 'mass premium' Pan India Brand and uniform pricing. Acquisition of Sylvania and pragmatic exit Lloyd Acquisition ✓ Entry into high potential Consumer Durables ✓ Aligned with 'Deeper into Homes' Expanding consumer touch point, Omni customer Omni Havells படம் HAVELLS LLOYD Crabtree S STANDARD REO. HAVELLS HAVELLS Life Line LLOYD S HAVELLS#5DEEPER INTO HOMES 2004 I Lighting Fans Switchgears Switches Till 2004 Industrial Cable Washing Machine Domestic Cable 2011 Onwards Air Conditioner Television Air Cooler Water Heater Refrigerator Water Purifier Domestic Appliances 21 Product verticals Serving ~70% electric sockets HAVELLS#6A 10 YEAR RETROSPECT in INR crores FY 2012 FY 2022 CAGR Revenues 3,616 13,889 14% EBIDTA 459 1,758 14% PAT 305 1,195 15% Net Worth 1,608 5,989 14% Cash Net of Debt 8 2,586 Dividend Payout% 31% 39% Product Lines 13 21 Number of Towns 1,054 1,853 Head count 3,090 5,970 The above information is based on standalone financials HAVELLS#7HAVELLS MOVING AHEAD#8Lighting & Fixtures Electrical Consumer & Durables Lloyd WELL BALANCED PORTFOLIO Revenue Mix (FY22) Switchgears Cables wwww 13% HAVELLS L 33% Contribution Margin Mix (FY22) Switchgears Cables HAVELLS L 10% 22% 16% Lighting & Fixtures Electrical Consumer & Durables Lloyd 24% 24% 25% 15% 出 5% HAVELLS#9MARKET SHARE: TOP 3 ACROSS CATEGORIES Cable LED Lighting Switchgears Product MCB Switches* Flexible Power (LT & MV) HAVELLS Indicative Market Size Indicative Market Indicative Share Organized Peers Rank Penetration Level (Rs. in crores) 3,000 ~18-20% Top 3 High Legrand, Schneider 4,500 ~12-13% Top 3 HAVELLS Medium Lie Line Panasonic (Anchor), Legrand 17,000 ~16% Top 3 Low Finolex, Polycab 17,000 ~10-11% Top 3 Medium Polycab, KEI Lighting & Fixtures 14,000 ~10-12% Top 3 Medium Philips, Wipro, Crompton Fans 8,500 ~20% Top 3 High Crompton, Usha, Orient ECD Water Heaters 2,500 ~20% Top 3 Medium Racold, AO Smith, Bajaj Other Appliances 7,000 ~10% Top 3 Medium Philips, Bajaj * Modular plate switches HAVELLS#10GROWTH LEVERS Electrification- semi urban & rural penetration Aspirational shift for brands Formalization & Digitisaton Only Price Aspirations Modern Retail Brand Features Unbranded Unorganised Branded Organised Luxury Tax Entertale Entry Tax Excise GST One Nation. One Tax! Local CST Так OCTROI VAT pasabazaar Nuclearization of families Product Expansion & Laddering Rise in disposable income & comfort led demand ሐ. Value Affordable Mass premium Premium Price Comfort & Convenience HAVELLS#11DISTRIBUTION: BROADENING ROUTE TO MARKET Traditional PHILIPS USPA 341 BANCHOR by Panasonic MODI ELECTRIC INDUSTRIES and alfiger HAVELLS MODI ELECTRIC INDUSTRIES Modern Trade elanté MON PHILIPS HAVELLS CONA ECTRONICS MODIELECTRIC INDUSTRIES 37-38, BALDA LINE SANCHI BAZAR, JAMSHEDPUR ALDA LI SAKCHI Projects ROMER Govt. Canteen Stores E-Commerce 20:29 Search Q © Search Amazon.in Deliver to Vineeth - Bengaluru 560055 Essentials Fresh Mobiles HAVELLS Feeling Fan -FEELS TOUCH pay Amazon Pay Food Fashion Phan UP TO 45% OFF amazonfresh == Send Money Scan UPI OR Pay Bills Deals of the Day Exports 2 19 manStock Exclusive Stores HAVELLS Rural HAVELLS GALAXY HAVELLS હેવલ્સ રાષ્ટ્ર એન્ટરપ્રાઈઝ HAVELLS#12DISTRIBUTION: RURAL- UNTAPPED OPPORTUNITY ➤Improved electricity penetration creating demand ➤Informed rural customer shifting to trusted Tier1 200k+ Tier 2 50k-200k Population range 3000+ towns brands Tier 3 10k - 50k ➤ Direct presence in 3,000 towns with population range of 10K-50K Tier 4 Below 10k Havells is the most penetrated FMEG brand in Rural markets Present portfolio for rural markets REC REO FLAME RETA-TENT INDUSTRIAL CABLES FVC INSULATED RELIABLE REO $90 REC TRUST NAAM MEIN. PERFECT KAAM MEIN. PRESENTING THE ALL NEW RANGE OF RED FANS Lighting Switches Switch gear Wires TEJAS CEILING FAN SPEED HAVELLS हेवल्स उत्सव एक्सक्लूसिव शॉप नवदुर्गा वाच एंड इलेक्ट्रानिक्स 9993396678, 9755447575 - ASUPRE217H17N HAVELLS हेवल्स वॉच एण्ड इ HAVELLS HAVELLS A HAVELLS Brand *2Years On Site Warranty HAVELLS हेयल्स imga www.w HAVELLS Fans HAVELLS#13DISTRIBUTION: EXPORTS Exports (in INR crs) 230 361 504 FY 18 FY 21 FY 22 t HAVELLS LIGHTS WITH A BRIGHTER SIDE Exciting range of Hell LED CHUM Uganda Outdoor & In-Shop Branding LED 22/05/2021 00000 LLOYD Qatar Strengths & Opportunity ➤ Brand, Manufacturing & technical capabilities ➤ Wide product portfolio ➤ China +1 (Creating global opportunities) Hitherto Nebulous now in focuS Broad basing markets, including developed countries Brand Shops HAVELLS SERVICES MERCHANDIZE LIMITED IN HAVELLS SONS THE CONDITIONERS THE LLOYD 00000 Sierra Leone & Ghana HAVELLS#14DRIVING BRAND AFFINITY National Advertising HAVELLS Grootskap Soort Amserving. 019 Regional Associations Digital campaigns ALL SET TO BEGIN A NEW INNINGS WITH LLOYD Its IntelliSensors balances heat and humidity, automatically 4 0:16/0.30 SmartChoiceWithLow Noise Havells Silencio, The Low Noise Mixer Grinder 4,216,938 views Oct 28, 2021 587 DISLIKE SHARE + SAVE Brand Shops HAVELLS HOME AUT LIGHTS HAVELLS#15FAST FOLLOWER TO THOUGHT LEADERSHIP: R&D IOT Smart Homes Maturity SAMELIS HAVELLS ADONIA First Mover Fast Follower Self development from ground zero (2000-2015) JVs and alliances (upto 1990s) Trend Setter Develop solutions (2015 onwards) 回 P H SMART HOUSE www Time HAVELLS#16DIGITIZATION: DRIVING BUSINESS EFFICIENCY HAVELLS Havells mKonnect YTD 935. Notifications (In La Reports SAMPARK Special Offer Products Retailers Engagement Program Digital Knowledge Centre Distribution Management System (DMS) Sales 1 Notifications Create Order Popular Scheme Documents Contact Us My Details Credit Details Address Details mKonnect: Dealer App 17:12 4G HAVELLS Complete Safety HAVELLS HAVELLS HAVELLS WELCOME TO SAMPARK PROGRAM ENTER MOBILE NUMBER GET OTP ^ HAVELLS Home Adviser E-PLUS 2.0 Electrician Loyalty Program Sales Force Automation 8:51 14.7KB/s ==== HAVELLS MORE Home ויין MY PROFILE DASHBOARD CHANNEL 0 PARTNER NEAR RETAIL SYNC ME New Retailer Registration PROJECT GALLERY RETAILER MASTER OFFICE WORKING ELECTRICIAN MASTER SCOUTING HAVELLS#17LLOYD ~ Revenue of INR 2200 crores (~$ 300 mn) ➤ Among top three AC players in the country ➤ Recently launched Washing Machine and Refrigerator ➤ A full stack consumer appliances play ➤ Leveraging Havells strength A HAVELLS Brand UNNVERTER LLOYD полятта LLOYD INVERTER HAVELLS#18HIGH GROWTH POTENTIAL INDUSTRY • Low Penetration -65% Colour Television -33% Refrigerator • Each Product Group Expected To Grow At Double Digit . INR Cr Washing Machines 10% 9,500 2019 15,900 18,900 10% Refrigerator 33,600 ~12% >5% Washing Machines Room Air Conditioner Room Air Conditioner 16,300 15% 37,600 11% 24,500 Colour Television 45,800 2025E 2019 2025E 2019 2025E 2019 2025E % CAGR Source: CEAMA and Frost and Sullivan HAVELLS#19GROWTH PILLARS IN PLACE Local Manufacturing Sourcing Indigenized Channel Expansion • • In-house manufacturing of AC • farsfer inler Reliance digital Display at all the large retail chains. Enhance numeric reach across India வசந்த் & கோ VASANTH & CO • Comprehensive CD Portfolio Introduction of REF now completes the basket LLOYD Wy uid nvERTERA • • Brand Salience Celebrity engagement High decibel promotion Mass to mass premium LLOUD 18°C in yal rahenge, khush rakhenge TRUST SANTH VASANTH&CO HAVELLS#20STANDALONE FINANCIALS Financial highlights in millions of Rupee FY18 FY19 FY20 FY21 FY22 Net Revenue 81,385 100,677 94,292 104,279 138,885 Growth % 33%** 24%** (6%)# 11% 33% EBIDTA % 12.9% 11.8% 11.9% 15.0% 12.7% PBT % before exceptions 12.3% 11.4% 9.6% 13.7% 11.5% 8.6% 7.8% 7.8% 10.0% 8.6% PAT % before exceptions* CAPEX (incl. intangibles) 15,888 4,996 3,592 2,189 2,545 ROCE % 30% 30% 24% 29% 30% Net Worth 37,392 41,922 43,048 51,645 59,886 Net Working Capital 3,131 7.655 6,987 15,834 13,535 Cash & Bank 15,262 12,877 11,069 19,310 29,821 * PAT for FY18 was 8.8% in both years including exceptional items ** Ex-Lloyd excise adjusted growth in FY18 and FY19 was 13% and 22% respectively # Ex-Covid, annual growth could have been 2% HAVELLS#21GROWTH WITH RESPONSIBILITY Mid-day Meal Programs Green Cover Programs Sanitation Programs Heritage Programs Steps Havells India Ltd. Plants-136500 TEAM Range North Lateri comp. No. 239 A plantation year 2020 Planted by Madhya Pradesh Raga Van Vikas Nigam in Wpisha Raisen Project Division Broga, छाव EREST HAVELLS ए 60000 hot meals served everyday to students across 693 schools. 15 lakh saplings planted till date 4600 bio-toilets Installed till date Ranked 7th by DJSI in the global electrical equipment sector First of its kind restoration project that is funded through CSR HAVELS#22SUMMARY ➤ Havells taps into a vast, high priority electrical products in home construction, improvement and convenience segment ➤ With improvement in per capital income, there will be a greater discretionary spend towards premiumization, brand affinity and comfort ➤ Distribution penetration, its universality, product digitsation and business efficiency through technology will be key focus. ➤ Native business acumen, market connect and ethics remain core values HAVELLS#23THANK YOU HAVELLS