#1LLOC Growth In Focus#2RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 2#3RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 3#4HUMBLE ORIGIN Founded a small trading business at Bhagirath Palace, Delhi Acquired Havells brand in 1971; an unconventional move ➤ Key foundational values- Transparency, Simplicity and Integrity HAVELL'S VELLE'S INDUSTRIES www RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 4#5AN EVOLVING JOURNEY Commenced Got listed on Stock Exchange business with Switchgears and Cables Acquired global business of 'Sylvania' Acquisition of 'Lloyd' consumer durable business First foray into South India with 2 new plants. 1958 1971 1993 2003 2007 2015 2017 2019 2023 Acquired 'Havells' brand RETROSPECT Divestment of 'Sylvania' Foray into Electrical Consumer Business with Fans and Lighting Focus on domestic expansion Commissioned Lloyd AC plant in Ghiloth INDUSTRY TRENDS MOVING AHEAD HAVELLS 5#6DEEPER INTO HOMES INDUSTRIAL TO CONSUMER BRAND 2004 Lighting MASS TO MASS-PREMIUM Fans Switchgears RETROSPECT Switches Till 2004 INDUSTRY TRENDS Industrial Cable Washing Machine Domestic Cable MOVING AHEAD 2011 Onwards Air Conditioner Television Air Cooler I Water Heater Refrigerator Water Purifier Domestic Appliances I I HAVELLS 6#7CONSTANT RE-IMAGINING GROWTH دوية 2003: Fans & Lighting $ 35 mn HAVELLS 10:45 ० 2022: $1,700 mn DIGITOUC 2017: Lloyd & Water Purifier $ 840 mn 2016: Air Coolers $ 737 mn Consistently Creating runway 2013: Pumps $ 579 mn 2012: Water Heaters, $ 495 mn 2011: SDA $ 395 mn 2000 2005 2010 2015 2020 2025 RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 7#8PERFORMANCE: 5Y & 10Y In Rs Crore FY12 FY17 FY22 5Y CAGR 10Y CAGR Revenues 3,616 6,135 13,889 18% 14% EBITDA 459 824 1,758 16% 14% EBITDA % 12.7% 13.4% 12.7% PAT 305 539 1,195 17% 15% PAT % 8.4% 8.8% 8.6% Net Worth 1,608 3,274 5,989 13% 14% Market Cap 7,135 29,253 72,272 20% 26% Product Lines 13 14 20 Head count 3,090 4,974 5,970 4% 7% RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 8#9CASH GENERATION & ALLOCATION FY15 opening ~Rs 700 crores cash Cash Sources Operating Cash Flow ~Rs 6,200 crores (~76% of EBITDA) Proceeds from Sylvania & other sale ~Rs 1,100 crores Others (including other income) ~Rs 1,000 crores Cash Generation Allocated to ↓ Capex ~Rs 2,000 crores (~32% of OCF) ~Rs 8,300 crores Lloyd Acquisition ~Rs 1,550 crores RETROSPECT FY22 closing ~Rs 3,000 crores cash INDUSTRY TRENDS Dividend ~Rs 2,500 crores (~40% of OCF) MOVING AHEAD HAVELLS 9#10BUSINESS MIX EVOLUTION Revenue Others NOW Switchgear 12%| Lloyd 20% Switchgear 24% 10Y AGO %9 ECD 19% ECD 20% Lighting 16% Lighting 9% RETROSPECT Cable 40% Cable 32% Contribution ECD 27% NOW Others Lloyd 6% 4% ECD 24% Switchgear 25% Switchgear 43% 10Y AGO Lighting 17% Lighting 15% INDUSTRY TRENDS MOVING AHEAD Cable 15% Cable 22% HAVELLS 10#11SEEDING & SCALING BUSINESSES Rs 1,000+ Crores Categories 6 Cable Fans O Wire Consumer Lighting 目 Residential AC " " ° Switchgear RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 11#12SEEDING EMERGING CHANNELS Emerging Channel (% of revenue) 8% 23% 5Y AGO NOW Emerging Channel Mix B2B MFR 22% 42% RETROSPECT INDUSTRY TRENDS MOVING AHEAD 15% E-com 8% 13% CSD/CPC Rural HAVELLS 12#13PREMIUMISING PORTFOLIO Ceiling Fans NOW Value 25% Value 22% Premium 30% Premium 17% 5Y AGO Mid 61% Mid 45% Mixer Grinders NOW Value 6% Premium 289 Premium 20% * Premium refers to >1.2x of average selling price (ASP); Value refers to <0.8x of ASP RETROSPECT INDUSTRY TRENDS MOVING AHEAD 5Y AGO Mid 80% Mid 66% HAVELLS 13#14WHAT WE ARE KNOWN FOR Aspirational - Mass Premium A trusted & household FMEG brand Entrepreneurial vision and professional rigour Well regarded for governance & values Performance delivered through business cycles RETROSPECT Debt free, cash positive, AAA rated INDUSTRY TRENDS MOVING AHEAD HAVELLS 14#15CULTURE BUILT OVER 5 DECADES Customer Centricity Entrepreneurship Ethics & Honesty Empathy Values Equality RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 15#16RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 16#17TWO DEEP POOLS OF HIGH GROWTH Electricals Market Size In Rs Cr (Annual) 2,00,000 1,25,000 Today 10% CAGR H Source: Internal & industry estimates RETROSPECT Life L HAVELLS LLOYD Electronics Market Size In Rs Cr (Annual) 1,75,000 1,00,000 12% CAGR In 5Y Today In 5Y INDUSTRY TRENDS MOVING AHEAD HAVELLS 17#18INDUSTRY POSITION <5% Revenue Growth 5-10% >10% Water Heater (2.5k cr) Switches (4.5k cr) SDA (7k cr) 000 F Switchgear Motor (5.5k cr) Pump (6.5k cr) ... 000 (3k cr) <5k cr Source: Internal & industry estimates RETROSPECT Fans (8.5k cr) INDUSTRY TRENDS 5-15k cr Size WM (13k cr) Lighting (14k cr) MOVING AHEAD Wires (17k cr) Cables (17k cr) >15k cr Product/Segment (Market Size in Rs) I AC (25k cr) Ref (25k cr) HAVELLS 18#19INDUSTRY POSITION <5% Revenue Growth 5-10% >10% Product/Segment SDA WM ~75% Portfolio in High Growth Water Heater Switches ↓ Fans ○ Wires AC 日 Ref 000 000 Motor Pump Switchgear <5k cr RETROSPECT INDUSTRY TRENDS 5-15k cr Size MOVING AHEAD Cables >15k cr HAVELLS 19#20MEGATRENDS Consumer Aspirational, informed & demanding Uniqueness Increasing intensity Competition New disruptors RETROSPECT Ε Greater share of wallet Home IoT & smart connected homes Traditional GTM relevant but challenged GTM Follow the consumer - Omni Channel INDUSTRY TRENDS MOVING AHEAD HAVELLS 20#21MEGATRENDS Remains relevant Brand Trust, reliability & continuity Digital Purpose Talent Wealth creation RETROSPECT Digital discovery + Physical execution Deep consumer digital engagement Way of life ESG Adding real value to businesses INDUSTRY TRENDS MOVING AHEAD HAVELLS 21#22RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 22#23STRATEGIC PILLARS - PAST COUPLE OF DECADES Brand Distribution Manufacturing People HAVELLS RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 23#24STRATEGIC PILLARS BRAND OMNI-CHANNEL INNOVATION DIGITISATION Brand Distribution Manufacturing People HAVELLS RETROSPECT INDUSTRY TRENDS MOVING AHEAD TALENT HAVELLS 24#25NEED STATE BRAND: STRADDLING ACROSS ELECTRICAL INDUSTRY AFFORDABLE ASPIRATIONOL LIFESTYLE REO MASS Socio Economic/ Income MASS PREMIUM S STANDARD HAVELLS CONSUMER DURABLES PREMIUM/PREMIUM + HAVELLS STUDIO I HAVELLS Crabtree MASS PREMIUM/PREMIUM + LLOYD RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 25#26OMNI PRESENT HAVELLS: CLOSER, DEEPER, WIDER Traditional PHILIPS USPA BANCHOR by Panasonic MON ELECTRIC INDUSTRIES and lige HAVELLS MODI ELECTRIC INDUSTRIES MO PHILIPS HAVELLS CONA ECTRONICS MODIELECTRIC INDUSTRIES JEM, HARL AUD ALDA LI SAKCHI 37-38, BALDA LINE SAKCHI BAZAR, JAMSHEDPUR Projects ROMER O Modern Trade elanté Canteen Stores E-Commerce 20:29 Search Search Amazon.in Q Deliver to Vineeth Bengaluru 560055 Ex Essentials Fresh HAVELLS Feeling Fan pay Amazon Pay Mobiles Food Super Value G Fashion Phan UP TO 45 OFF amazon fresh Carnesia COFFER Send Money Scan UPI OR Pay Bills Deals of the Day 3 19 International Taysan Stocks Exclusive Stores HAVELLS GALAXY HAVELLS Rural 212 HAVELLS હેવલ્સ એન્ટરાઈઝ RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 26#27RURAL- UNTAPPED OPPORTUNITY Tier1 200k+ Tier 2 50k-200k ➤ Improved electricity penetration creating demand. Informed rural customer shifting to trusted brands ➤ Direct presence in 3k towns with population range of 10K-50K ➤ Havells is the most penetrated FMEG brand in Rural markets Tier 3 Tier 4 U IREO + 04 ! શા હે થયી જણાત ખુશીઓની Gavill vivo X70 Pro ZEISS Royal Event May 06, 2022, 08:35 HAVELLS हेवल्स उत्सव एक्सक्लूसिव शॉप नवदुर्गा याच एंड इलेक्ट्रॉनिक्स 1: 9993896678, 9755447575 23A8JPN6237H1ZN HAVELLS हेवल्स वाच एण्ड इ खुशियों का आरंभ se meian HAVELLS HAVELLS HAVELLS हेवल्स HAVELLS B BOLERO HAVELLS खुशियों का आरंभ Ben a रे 10k - 50k 3000+ towns Population range Below 10k HAVELLS खुशियों का आभ RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 27#28INNOVATION: FAST FOLLOWER TO THOUGHT LEADERSHIP Maturity NAMELIS 0:45 HAVELLS ADONIA 75 First Mover Fast Follower Self development from ground zero (2000-2015) JVs and alliances (upto 1990s) RETROSPECT IOT Smart Homes Trend Setter Develop solutions (2015 onwards) SMART HOUSE Time INDUSTRY TRENDS MOVING AHEAD HAVELLS 28#29DIGITIZATION: DRIVING BUSINESS EFFICIENCY Supplier ما Factory STA Channel Partner Sales Team Retailer 360° Integration of Stakeholders, Business Processes and Data Global Vendor Portal QRG GlobalVendorPortal Improved Supply Chain Management GROUP Welcome PVT LTD. HAVELLS www. MORE Market Operations & Revenue Enhancement. SAMPARK Home Purchasing Shipment Account Statement St Released F Overview Open Payables Finance Overview O O по Open Payables OpenPayablesApp Account Statement Account Statement Released Payment Details Released Payment Details Account balanace Confirmation BalanceConfirmationApp B5 DASSAULT SYSTEMES Industry 4.0 (Mfg Execution System) I Havells mKonnect DMS HAVELLS < Hels YID Notifications 935. (In La Reports Sales Notifications Create Order Popular Scheme Documente Special Offer Products 23 Contact Us My Details: Credit Details Address Details L Dealer Portal & App RETROSPECT Consumer Closer to the Consumer SYNCH Consumer App Ball G+ 8:5114.7KB/s Retailer Engagement = MERE HAVELLS Home U HAVELLS MY PROFILE DASHBOARD CHANNEL RETAIL SYNC PARTNER NEAR ME 15.53 (inack) PROJECT GALLERY RETAILER MASTER OFFICE WORKING ELECTRICIAN MASTER SCOUTING Field Force Automation E-PLUS$2.0 Electrician Loyalty INDUSTRY TRENDS MOVING AHEAD Sencio 4 Jan HAVELLS Home Adviser Consultation WA for Business you toga st D2C Channel dk-t Advocacy Awareness Consumer Usage Lifecycle Consideration Purchase With Consumer thru Lifecycle HAVELLS 29#30TALENT Instituting wealth creation opportunity “KHJJS” Integrating individual & company aspiration Distributed leadership b 869 Entrepreneurial Laterals to "leaders from within" RETROSPECT INDUSTRY TRENDS MOVING AHEAD HAVELLS 30#31ORGANIC INCUBATIONS Revenue "Others" Category Revenue Trajectory 10x In 7 Years Rs 91 cr (FY15) Years RETROSPECT Motor ~Rs 1,000 cr Pump INDUSTRY TRENDS MOVING AHEAD Solar Personal Grooming Water Purifier HAVELLS 31#32WHITE SPACES – CRITERIA To EvaluatE TO EVALUATE Organic - Inorganic Sunrise Sector ✓ Large Market Size Growth & Profitability Strategic fit ✓ High Growth ✓ Brand Leverage ✓ Channel Synergies ✓ Technology Play ✓ Premiumisation Scope ☑ Adjacencies RETROSPECT Inability to seed such business internally INDUSTRY TRENDS MOVING AHEAD HAVELLS 32#33GROWTH WITH RESPONSIBILITY Mid-day Meal Green Cover Program Sanitation Programs Heritage Programs Havells India Ltd. Mata Plants-037500 TEAY Range North Lateri comp. No. 239 A plantation year 2020 60k hot meals served daily across 693 schools 15 lakh saplings planted till date External ESG Rating DJSI (Global) MSCI (Global) RETROSPECT HAVELLS Y 13-REPEST www. 4600 bio-toilets Installed till date First of its kind CSR restoration project Ranked 7th in the global electrical equipment sector Rating A INDUSTRY TRENDS MOVING AHEAD HAVELLS 33#34GOVERNANCE AAA credit Rating CG2+ Corporate Governance rating Consistent Dividend payout ratio of -40% 14 member board; only 3 family members on the board. RETROSPECT ΣΗΣΗΣ *** Highly reputed independent professional board INDUSTRY TRENDS MOVING AHEAD HAVELLS 34#35SUMMARY An Indian brand born, survived and thrived amidst fierce competition Uniquely positioned to serve the aspiring nation and build an institution Excited with opportunities ahead HAVELLS Value creation for all its stakeholders Entrepreneurship with guts, integrity and humility RETROSPECT INDUSTI TRENDS MOVING AHEAD HAVELLS 35