#1Indian Toners & Developers s Ltd. 2 Celebrating year's Indian Toners & Developers Limited ITBL Investor Presentation July 2018#2Safe Harbor (ITDL) This presentation and the accompanying slides (the "Presentation"), which have been prepared by Indian Toners & Developers 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 cash flows, 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. 2#3India's Largest Compatible Toner Manufacturer Single Largest Market Share in Domestic Market Used in Laser Printers, New Age Digital Machines, Multi- function printers, Analogue Copiers (ITDL) Largest Exporter of Compatible Toners to over 20 countries Received Award for 'Excellence in Export Performance' from Indian Government, year on year 120+ Distributors with PAN India presence Caters to more than 600 Dealers 1,500 Refillers 44,000 Photo Copy Outlets 3#4With Leadership Position in Industry Production capacity increased to 650 MTPA 2002 Manufacturing plant exclusively for R&D, installed Added New production facility, I.T.D.L. Imagetec Ltd. (1,200 MTPA) Thereby increasing the total Production Capacity to 2,400 MTPA Developed Toners for Wide Format Printers and Copiers 2012 2008 1990 Production Capacity increased to 1,200 MTPA Developed Coating technology for Chemically Produced Toners Incorporation of the Company 2004 2010 2013 (ITDL) Developed the formulations to manufacture MICR Printers Indian Toners USA Company formed in Florida, U.S.A. Wholly owned subsidiary of Indian Toners & Developers Ltd. 2014 Production Capacity enhanced to 3,000 MTPA 2016 2017 Production Capacity enhanced to 3,600 MTPA and Amalgamated I.T.D.L. Imagetec Ltd. into ITDL. 4#5Integrated Business Structure ITDL Unit 1 (Rampur) Focus on International Market + ITDL Unit 2 (Sitargunj)* Focus on Domestic Market Focus on Domestic and International Market Financial Strength & Flexibility Synergy Provides Competitive Edge to ITDL Greater Efficiencies & Optimum Utilization of Resources Better Financial, Business and Operational Prospects Value Unlocked for the Shareholder *On August 2017, Court approved the scheme of Arrangement for Amalgamation of I.T.D.L. Imagetec (ITDL Unit 2 Sitargunj) with ITDL (ITDL) 5#6Used in: Offering a wide variety of Products SUPREMO SUPREM UPREMO REMONTONER GENUINE CHEMICAL Manufactures Markets Pulverised Toners Chemically Produced Toners (CPT) Laser Printer Analogue Copiers MFP MICR Printer Wide Format Color Laser Printers Printer (ITDL) Under the Flagship Brand TM SUPREMO FORMULA-L THE ULTIMATE LASER TONER COLOR PREMIUM Genuine Chemical Color Toner Develops & Produces Compatible Color Toners to meet the ever- changing needs of the market India's Largest Compatible Toner Powder Manufacturer One of the largest in South East Asia 6#7Producing Compatible Toners of Leading Brands ITDL Wide Format Copier & Printer Toners ITDL MICR Printer Toners ITDL Laser Toners ITDL Copier Toners Hewlett-Packard (HP) (ITDL) TOSHIBA OCE SAMSUNG KIP KONICA MINOLTA CANON KYOCERA MITA TONERS SHARP XERO RICOH BROTHER SAMSUNG ROWE MULTIFUNCTION LEXMARK KONICA MINOLTA The Brand Names/Model Designations mentioned in the Product List are the property of their respective owners and are used here for identification purpose only 7#8Recent Launches of Toners Compatible with... (ITDL) BROTHER® HL-2370 BROTHER® SAMSUNGⓇ HP® HP® HL-6400 ML 4510 LJ M506/527 LJ M402/426 HP® LJ M607/608/609 HP® LJ M604/605/606 HP® LJ M600/601/602/603 HP® M102/M130 (17A) HP® M106W (33A) HP® M104A (18A) XEROX® DC C2260 KONICA MINOLTAⓇ KONICA MINOLTAⓇ Biz Hub C220 Biz Hub 266 SHARP® Universal TOSHIBAⓇ eStudio 3008A/2508A The Brand Names/Model Designations mentioned in the Product List are the property of their respective owners and are used here for identification purpose only TOSHIBAⓇ eStudio 457 80#9Recognized R&D Capabilities COLOUR TONER AND AEROS (ITDL) ITDL researches, develops, formulates and manufactures world class toners R&D team assisted by scientists from Japan Exclusive R&D Pilot Plant comprising broadly of Pre-mixer, Compounding, Classification and Milling machinery of German Origin State of the art R&D lab, equipped with requisite scientific analytical instruments State of the art "Environmental Test Chamber", to test and develop products as per humidity and temperature conditions existent in various regions of the world R&D Lab is well equipped with scientific analytical instruments like : Multisizer III DSC Tribo Tester Fluxmeter Densitometer TREK Instrument Melt Flow Indexer TGA Appratuses Fuse Quality DC Resistivity Precision Electronic Balances 6#10State of the Art Manufacturing Facilities Rampur, U.P. Sitargunj, U.K. Indian Toners & Developers 2 lines - with 600 MT Each Houses the R&D Plant (ITDL) Best Toner Manufacturer - NCN Magazine Capacities (MTPA) Star Export House +9.8% 3,600 3,000 Since 1992 2,400 More than 50,000 square meters of area 1,200 650 350 1992 2002 2004 2008 2014 2017 4 lines with 600 MT Each - Since 2008 More than 50,000 square meters of area State of the Art Manufacturing Facilities 6 lines with a total manufacturing Capacity of 3,600 MTPA Exclusive R&D line recognised by Government of India 10 10#11Strict Quality Control Standards (ITDL) CERTIFIED Management nvironmental by British Standards Certified by E 150 ISO 14001:20 System Management Standards ISO 9001:2008 Quality M Certified b System bsi.bsi. Quality at par with OEM standards 4001:2015 CBP ISO 14001:2 An ISO 9001:2008 CERTIFIED COMPANY ☑Employing state-of-the-art highly automated plant and machinery from Germany and Switzerland and using environmentally friendly raw materials sourced from advanced countries like Japan, Germany, Korea and USA At each stage of production every batch is subjected to intensive testing before being released by the Company's quality assurance department Key parameters such as P.S.D., tribo-charge, relative dielectric constant, specific DC resistivity, flow ability, M.F.I., magnetic properties etc, are evaluated and tightly controlled Toners are also tested in different temperature and humidity conditions in its Environmental Test Chambers for Customers located around the World ANV 44 different Quality Checks are performed on the Products before they leave the Factory Premises 11#12Environment Friendly Corporate Identity (ITDL) eco win Save resource ecoceleco e nature tree planet Green tree Celectric Tmodern Gobal organic fficeFossil Friendkurbine technologyth Recycleffi universe nature clea Naturerland Efficient cell sky wind biofuel leaf Recyclable sane Initiative-fl fossi resourcenature planet Production Alternativeave Solaplectic oganic globalsav earth intues Senewable tree plane missiOS Wind Recyclable Plant fossil earth Dission tree wind save leaf eco earth clean Sun eco nature creaiturbine. winature plane wind Tane nature есп turbing Clean leat ell natutu eap save nat cleansolar trepo eco cle turbieris stun tree leat clearplanet turbineco createmission trere Dower natyre clean turbing windmill gla emission sky windmill k eative atuel univer Gology Conce recyclable tree ur biower ecologa creativefuel mill Hazard-free eco tree windologicaectric tree power creative. Conte save e w. a b. l e Productiontechnology natura WIND su nature+ ecclean Fernasion technology ecolog creative r EMISSION ece plan modern clear power Earthglobal urbin mature Owe rea vee af e a planet -nature organic Concept emission Toden loba treerbine Clean eaf powe Pecycle windmill resource save Creative Safe save miss technology mission modeAlternative wind d eco moderunivers save savp L resourcellwindmance ecologice Produca Fons power Bay leaf modernuniverse eco ecologication Bemissie LA ITDL uses Plant & Equipment in its manufacturing process, which Catches and Controls the Emission of Dust Standards Particles into the Atmosphere Management system onmental Certified & 14001:2015 150 Management Standards by British Quality Certified by ISO 9001:2008 System bsi.bsi. GL4001:2015 CHAP CER ISO ISO 14001 management systems, are those companies who are dedicated towards continuously improving their environmental procedures by reducing their negative impacts on the environment ITDL also plants trees on a monthly basis in both its manufacturing facilities symbolising its dedication to the green company initiative Company has adopted systems that provide a safe and hazard-free working environment for its employees Installation of a solar power generation plant, for in-house power consumption - is another step towards the Green Initiative 12 12#13Large Distribution Network 4 Regional Offices Approx. Rajasthan 1500 re-fillers Over 44,000 Photo Copy Outlets Domestic 8 600 Dealers Jammu & Kashmir Himachal Prades CoUttaranchal 120+ Distributors Hanyana Arunachal Pradesh Delhi Sikkim Uttar Pradesh Assame Nagaland Bilfar Meghalaya Manipur Triputs Jharkhand Mizoram Madi West Bengal Maharashtra Karnataka Andhra Prad Tamil Nad 100 Sales Team Regional Office Mandailija facles Distributor 1004 Dealers wood Jabber © chillers International 25% of total Revenue come from Exporting to more than 20 countries Sole distributor in Singapore Warehousing facility in Singapore as well Wholly owned subsidiary in Florida U.S.A. Warehousing facility in Florida as well Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness (ITDL) 13 *As per FY18 P&L Statement#14Proven Track Record (ITDL) Global Industry Award RT MEDIA RT Media Global Industry Award for Outstanding King of Toner Award - Imaging Solution Marketing, 2017 - RT Media Recharge India Lifetime Achievement Award (Sushil Jain) Global Player Award - Recharger Magazine NCN Editor's Choice Award Best Toner Manufacturer - NCN Magazine "Excellence in Export Performance "Award every year from 2002 till date - Government of India Congratulations nen 3rd ACHIEVER'S AWARD 2012 SPECIAL AWARD 2012 Leading Toners Manufacturer ITDL ITDL IMAGETEC LIMITED प्रशस्ति पत्र sher Des 2012-13 CITATION SHRJANESHWAR MISHRA EXPORT AWARD Y3811-13 e chef gefange प्रथम पुरस्कार The Gear Indian Toners & Developers Rampur t FIRST AWARD Other Mats Predict Achiever's Award - NCN Highest Export Performance under miscellaneous products - U.P. Government CAPEXIL Certificate of Peport Becognition Certificate of Merit Presented to M/s. Indian Toners & Developers Ltd., New Delhi. in recognition of their export achievement in respect of Compatible Black Toner for Laser Printer/Photocopier for the year 2012-2013 Export Achievement in Compatible Black Toner for Laser Printer - Capexil 14#15An Experienced Board Mr. Akshat Jain Mr. Jain is a young and dynamic Qualified B.Sc in Business Administration from Pepperdine University, California (USA) More than 12 years experience Mr. Sushil Jain Whole-time Director Mr. Arun Kumar Garg Mr. Garg is a Chartered Accountant having experience in Audit, Finance, Tax and Business Restructuring More than 35 years experience Independent Director (ITDL) Mr. Sanjeev Goel Mr. Goel is a Chartered Accountant having experience in Audit, Finance, Tax and Business Restructuring More than 36 years experience Independent Director Mr. Jain is a dynamic qualified engineer from Delhi College of Engineering Under his Leadership the Company has become the Leading Toner company of the country More than 37 years experience Chairman & M.D. Mrs. Neena Jain Mrs. Jain is a Chartered Accountant having experience in Project Finance, Banking, Valuation and Buy Back of shares More than 29 years experience Independent Director 15#16T1252 125 T1254 T1203 T1251 Cyan Cart 125 125 125 Yellow ack Jaune Financials Click!#17Q1FY19 Key Financial Highlights 26% 53% 63% Gross Profit EBITDA 1,320 1,664 392 599 PAT 357 582 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Rs.in lakhs (ITDL) 17 177#18Profit & Loss Statement (ITDL) Particulars (in Rs. Lakhs)# Q1FY19 Q1FY18 Y-o-Y Q4 FY18 Q-o-Q FY18 FY17 Y-o-Y Revenue from Operations* 2,655 2,167 23% 2,774 -4% 11,048 11,450 -4% Raw Material 991 846 925 4,493 5,040 Gross Profit 1,664 1,320 26% 1,849 -10% 6,555 6,410 2% Gross Profit Margin 63% 61% 67% 59% 56% Power and Fuel 259 217 224 933 852 Employee Expenses 356 316 346 1,334 1,253 Other Expenses 451 395 443 1,634 1,669 EBITDA 599 392 53% 836 -28% 2,654 2,636 1% EBITDA Margin 23% 18% 30% 24% 23% Other Income 96 158 168 722 672 Depreciation 93 89 94 368 321 EBIT 602 461 31% 910 -34% 3,008 2,987 1% Finance costs 14 11 15 57 36 PBT 588 450 31% 895 2,951 2,951 Tax 6 93 197 546 664 PAT 582 357 63% 699 -17% 2,405 2,287 5% PAT Margin 22% 16% 25% 22% 20% Cash PAT 675 446 51% 792 2,773 2,609 # Quarterly nos. are Standalone and Full year nos. are consolidated * Revenue from operations is net of Excise duty/GST Financials are as per IND-AS and Post Amalgamation of its subsidiary ITDL Imagetec Ltd. Cash PATPAT + Depreciation 18#19Balance Sheet (ITDL) Liabilities (in Rs. Lakhs) Mar-18 Mar-17 Assets (in Rs. Lakhs) Mar-18 Mar-17 Non-current Assets 12,354 11,535 Equity 16,330 14,361 Property, Plant and Equipment 5,188 4,500 Equity Share capital 1,316 1,316 Capital Work-in-Progress 95 786 Other Equity 15,014 13,045 Other Intangible Assets 4 1 Non-current liabilities Financial Assets 351 330 Investments 6,454 5,671 Financial Liabilities Other Financial Assets 531 545 Other Financial Liabilities 77 95 Other Non-Current Assets 82 32 Current assets Provisions 79 44 6,912 5,276 Inventories 1,354 1,159 Deferred Tax Liabilities (net) 195 191 Financial Assets Current liabilities 2,584 2,121 Investments 2,162 1,346 Trade Receivables 1,720 1,416 Financial Liabilities Trade Payables 1,618 Cash and Cash Equivalents 483 555 1,188 Other Bank Balances 12 Other Financial Liabilities 12 Loans and Advances 50 72 Other Current Liabilities 400 352 Other Financial Assets 202 79 Provisions 555 581 Current Tax Assets (net) 567 534 Other Current Assets 363 116 TOTAL 19,266 16,812 TOTAL 19,266 16,812 19 Consolidated Financials as per IND-AS and Post Amalgamation of its subsidiary ITDL Imagetec Ltd#20Key Takeaways Research & Development Researches, Develops, Formulates and Manufactures Ministry of Science & Technology, Government of India, recognizes our R&D, Huge Market Potential* Total Global Market - ~2,25,000 TPA with aftermarket share of about 25% India's Toner Production and Imports is about 7,000 MTPA growing at 6-7% P.A. Branding ― Increased share of our Brands Increased sales from our own brands "Supremo", "Formula", "Racer" and "ITDL Colour Premium" will lead to increased Profitability 0 I Toner Compatibility Toners compatible with all major brands ☑Recently launched Compatible Laser Toners for HP, Samsung, Brother and Copier Toner for Toshiba and E-studio Product Pricing to gain Market Share Indigenous approach towards global product helps in gaining market share Benefits of Economies of Scale coupled with higher Market Share State-of-the-Art Manufacturing 6 lines with a total capacity of 3600 MT and 1 exclusive R&D line ☑Automated plant and machinery from Germany and Switzerland (ITDL) The Brand Names/Model Designations mentioned in the Product List are the property of their respective owners and are used here for identification purpose only * As per Management Estimates 20 20#21Indian Toners & Developers Limited Company: ITDL For further information, please contact Investor Relations Advisors : SGA Strategic Growth Advisors CIN: L74993UP1990PLC015721 Mr. S.C. Singhal - Company Secretary [email protected] www.indiantoners.com CIN: U74140MH2010PTC204285 Mr. Shogun Jain / Mr. Shrenik Shah [email protected]/[email protected] +91 77383 77756 / +91 96647 64465 www.sgapl.net (ITDL) 21