#1CEREBRA GREEN Your E-Waste Solutions Expert INVESTOR PRESENTATION Q1FY22#2DISCLAIMER CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward- looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. In no event shall the company be liable for any damages whatsoever, whether direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business relationships arising out of or in connection with the use of this presentation. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company's operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company's principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. 2 Investor Presentation OP ◀公▶T#3TABLE OF CONTENTS 3 Investor Presentation Q1FY22 Highlights Company Overview E-Waste- Cerebra Green Page no Page no 5 Page no Financial Highlights Page no 26 ☐ Road Ahead Page no 29 CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ◀公▶T#41FY22 BUSINESS HIGHLIGHTS OPERATING BACK TO FULL CAPACITY E-waste: CIRCULARITY: Our Driving Philosophy. Digital Adoption: Our Mission CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT 2 4 Cerebra is a completely green company and into business of E-waste recycling business under which company have segments of Refurbishment, EPR (Extended producer Responsibility) and CEC's (Cerebra Experienced Centre's). The 20,000MT capacity is fully utilized currently and hence Company has started the construction of its 3rd factory and the same is expected to be completed by end November 2021 to result in enhanced capacity. Company have The Company has opened 33 Cerebra signed up with certain Experience Centers stores in FY21 across India through Franchisees to sell Refurbished products and planning to add 20 more in FY22. other major MNCs and Large Indian Corporates as its ■ Recycling partner during the quarter out of which few are in fortune 500 list. Overall management remains very bullish and excited for the prospects of it's E- Business looking at Industry opportunity size, new client additions, renewed traction with existing clients and increase in capacity by Q3FY22. 4 Investor Presentation 1 3 ORA 5 ◀公▶#5WHO WE ARE CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT OUR VISION - At Cerebra Green, our vision is to lead India into a regenerative culture, where recycling and putting the environment first is a natural step for large organizations and individuals alike. At present, we have created India's largest, most sophisticated end-to-end e-waste recycling facility. The facility is also among the first to achieve a completely eco-friendly e-waste disposal technique such that there is a zero landfill and zero water level pollution during the process. Cerebra is on the mission to bring the green revolution in the country which is still ~95% unorganized where untrained workers carry out practices unsafe for human and environmental health. Cerebra aims to become a leading player in E-Waste Recycling in the country. Reduce Reuse 5 Investor Presentation ◀公▶#6CEREBRA MILESTONES STORY SO FAR 1992 Inception of Cerebra Integrated Technologies Limited IPO 2000 Initial Public offering in April 2000 2010 Created the Enterprise Solution Division partnering with Dell, IBM, HP and others to offer Enterprise level IT solutions OUR PRESENCE O = CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT 6 C 2011 =Y EPR EXTENDED RESPONSIBILITY PRODUCER THI Cerebra opens Middle east office 2013 Cerebra Forays into recycling. Inception of Cerebra Green 2018 Cerebra opens one of the largest e-waste recycling facilities in Narsapura 2019 Cerebra Experience Centres are launched Extended Producer Responsibility business started 2020 One of its kind, home grown software SPOCK is implemented to capture end to end business operations Investor Presentation Sales Office : 6 Blr, Mum, Del, Pune, Chennai, Hyderabad Overseas Partner Office : 4 Kathmandu, Dhaka, Colombo & Yangon ◀公▶#7MANAGEMENT HIERARCHY Ranganathan V Managing Director BE, Work Ex 35+ years The driving Force of Cerebra since inception. EXECUTIVE BOARD Vishwamurthy Director PG DSM & BE, Work Ex 29+ years. Evolved from multiple roles to Director. Bharath Co-founder & COO BE, Work Ex 35+ years with major stint in Cerebra, since its inception. E-WASTE MANAGEMENT CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ENTERPRISE SOLUTIONS Kala Bose GM-HR PGCHRM, MPM. Work Ex 15+ years GO Ravi Kumar Neeladri CEO BE, Work Ex 30+ years Umashankar ZM Institutional Sales BA, Work Ex 25+ yrs Himanshu Sharma - ZM Refurb Sales, North MBA, Work Ex 17+ years - Pranesh Panyam Business Head Asset Recovery, MBA, Work Ex 18+ years Hariprasad Shetty CBO MBA, Work Ex 20+ years Rakesh Rasalam GM - Factory BE, Work Ex 20+ years Hemachandra ZM Procurement, Complex material B.com, Work Ex 16+ years Phalgun Jois CEO Enterprise Solutions BE, Work Ex 30+ years Raghavendra H ZM Refurb Sales, South MBA, Work Ex 17+ years Preeti T Customer Success and BD EPR MBA, Work Ex 17+ years FINANCE Kishan Rao CFO B.Com, CA, Work Ex 19+ years Sivakumar Consultant B.Com, CA, Work Ex 33+ years HS Venkatesh Consultant CA, Work Ex 35+ years HUMAN RESOURCES 7 Investor Presentation#880 Investor Presentation E-waste- Cerebra Green CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ◀公▶T#9WHAT IS E-WASTE WASTE ELECTRICAL ELECTRONIC EQUIPMENT (WEEE) IS KNOWN AS E-WASTE CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT E-WASTE IS NOT WASTE: IT IS WEALTH, PRECIOUS & BASE METALS CAN BE RECOVERED 9 Investor Presentation ◀公▶#10EVOLUTION OF E-WASTE MANAGEMENT IN INDIA . 2002 E-waste first emerged as an environmental issue 10 Investor Presentation 2008 Guidelines for Electronic Waste Management • 2 formal recyclers in India 2016 Revisions E-waste Law More than 312 recyclers and dismantlers in India 2012 • Electronic waste law comes into effect Nearly 100 dismantlers and recyclers in India Installed Capacity - 782080 T/pa E-waste channelized under EPR: 78280 E-waste Generated 2.2 MT/annum CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ◀公▶T#11E-WASTE INDUSTRY OVERVIEW CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT India's E-waste generation have grown at CAGR of 16% over FY15-20 With the current growth rate, by 2025, India will be producing 25, India will be producing 7 million MT of e-waste annually and 14 million MT by 2030 I E-waste generation (million metric tonnes) 3.23 2.86 2.53 2.22 1.97 4.5 4.12 14 4.12 7.59 47.52 25.79 87.56 161.32 2015 2016 2017 2018 2019 2020 2021P 2015 2020 2025 2030 2035 2040 2045 2050 2055 11 Investor Presentation Source: CSE E-Waste Management In India Report 2020#1212 Investor Presentation 13.9% 9.1% MAHARASHTRA TAMIL NADU ANDHRA PRADESH 8.7% 7.1% RS. IN CRORES 18691 B 55806 18900 19885 55765 Production profile for electronics in India Computer Hardware Computer Electronics Mobile Phones 54000 20382 64742 ELECTRONICS WASTE WILL ONLY GROW AND CEREBRA HAVE A HUGE MARKET TO ADDRESS CEREBRA GREEN VL7 YOUR E-WASTE SOLUTIONS EXPERT 00006 2014-2015 2015-2016 2016-2017 YEAR 2017-2018 2018-2019 2019-2020 Percentage contribution by states to annual e-waste generation; Cerebra have a strong presence in Southern markets 6.9% UTTAR PRADESH WEST BENGAL DELHI Source: CSE E-Waste Management In India Report 2020 .7% KARNATAKA % Contribution 6.2% 6.1% 5.3% GUJARAT MADHYA PRADESH ALL OTHER STATES ◀公▶ 1401 73524 132000 30.0% 21180 77000 22500 170000 84000 225000#13CEREBRA TO BE BIGGEST BENEFICIARY OF GOVERNMENT THRUST ON CIRCULAR ECONOMY CEREBRA GREEN VL7 YOUR E-WASTE SOLUTIONS EXPERT India is the third largest consumers of raw materials produced globally. If current economic trends persist then India's material requirements are projected to be nearly 15 billion tonnes by 2030 and little above 25 billion tonnes by 2050. For India to fulfill its resource needs, it is imperative that we follow circular economy approach rather than the current linear economy principle of take- make-dispose. It is expected that the business of extracting precious metals from E-Waste will grow to US$6 billion by the year 2030, and this will be a big business opportunity for India. Reduce Environmental Footprint non-toxic, Green products Cleaner production long-life, using fewer resources recyclable Recycle waste, reuse resources Circular Economy Generate Increased Income Digital India Mission •Consumption of resources • Provision of services • Demand for products Deeper transformation leading Better service Swachh Bharat Mission •Collection of waste to circular economy and resource efficiency to extend lifespan Minimize Waste Collect at end-of-life, remanufacture Reduce Resource Dependency 13 Investor Presentation •Extraction of resources Channelisation of resources into production stream Make in India Mission Manufacturing of products Capacity to meet internal demand •Exports to earn revenue and growth OP ◀公▶#14DISMANTLING OF A LAPTOP OUTPUT FRACTIONS Fe-ferrous metals aluminium LCD-display mixed scrap PWB-printed wired boards processor speakers, microphones (fractions rich in copper) battery copper 14 Investor Presentation RAM plastics HDD-hard disc drive CDD – CD disc drive cables/ wires CEREBRA GREEN VL7 YOUR E-WASTE SOLUTIONS EXPERT ◀公▶#15E-WASTE CFL EXAMPLE Improper disposal CEREBRA GREEN VL7 YOUR E-WASTE SOLUTIONS EXPERT 4-5 mg of Hg 2000 units per lot; 10g Hg 5,000,000 lit of water inept to drink - Such actions will have measurable impact on the environment and in turn to mankind Remediation of damage is irreversible - 15 Investor Presentation O#16CEREBRA TO EMERGE AS BIGGEST CONTRIBUTOR TO INDIA'S AIM OF REDUCING DEPENDENCY ON IMPORTS OF PRECIOUS METALS OVER THE NEXT FEW YEARS With the Capacity of 96,000 TPA, Cerebra will not only have a huge opportunity to become India's leading E-waste Recycler but also biggest contributor to reducing India's gold imports and other precious & base metals and thus directly contributing to foreign exchange savings. CEREBRA GREEN VL7 YOUR E-WASTE SOLUTIONS EXPERT 0 But... of 1 ton of gold ore yield 5-6 grams gold only 16 Investor Presentation 1 ton of discarded electronic waste can yield up to 350 g of gold E-WASTE PLASTICS urban mining NOLAN PASTIS Urban Mining: An Unimaginably Valuable Mine On Earth RECYCLING COPPER USES UP TO 85% LESS ENERGY THAN PRIMARY PRODUCTION Why Urban Mining BY THE NUMBERS Gold Recovery: Mining Ore v. E-Waste Am 400 $38,530 RE CEREBRA GREEN L7 ◀公▶T#17HAZARDOUS PRACTICES OF RECOVERY OF GOLD IN UN-ORGANIZED SECTOR CEREBRA GREEN VL7 YOUR E-WASTE SOLUTIONS EXPERT 17 Investor Presentation Total Au-recovery efficiency only 25%, while environmental & health damage is dramatic (Rochat, Keller, EMPA 2007) ◀公▶T#18NARASAPURA PLANT FULLY INTEGRATED RECYCLING UNIT One of India's largest integrated E-Waste recycling facility at Narasapura Industrial Area, Kolar District, near Bengaluru spread across 12 acres of land CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT • • . Capacity of 96,000 Tons per annum; obtained necessary consent from Karnataka State Pollution Control Board. Current operating capacity is 20,000 MTs per annum (~1,667 MT/Month) Proposed ramp-up of capacity is 40,000 MTs per annum (~3,333 MT/Month). Agreements with many customers including MNC's across India for collecting E- Waste. Precious Metals refining plant to be set up soon. PRO Collection centers at Ahmedabad, Chennai, Hyderabad, Mumbai, New Delhi, Pune, Patna, Jaipur, Kolkatta, Ludhiana and Punjab. Awarded IMS Certificate ISO9001:2015, ISO 14001:2015, ISO 18001:2007, ISO 27001 and RESPONSIBLE RECYCLINGO:2013. Scope: E-waste Collection, Dismantling, Segregation, Recycling, Refurbishing & Data Protection activities of Waste Electrical & Electronic Equipment. 18 Investor Presentation ◀公▶#19KEY CLIENTS SNAPSHOT Flipkart f SEEDWORKS tangue Infosys Navigate your next Sniper CNE acer Sierra-Cedar Capgemini Tech Mahindra Connected World. Connected Experiences. VOITH Walmart 19 Investor Presentation IRON MOUNTAIN fiserv. newwave Of by CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT#20KEY CLIENTS SNAPSHOT CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT Mahindra FINANCE CME Group LARSEN & TOUBRO virtusa R Travel NetworkM Sabre First Advantage Autoliv Cerner Accelerating Business Outcomes Mphasis The Next Applied 20 Investor Presentation TVS ELECTRONICS TATA ELXSI ADITYA BIRLA GROUP CONCENTRIX netmagic An NTT Communications Company TM ZEEMEDIA APTIV K KENNAMETAL ◀公▶#21CEREBRA PRO OPERATING PROCESS CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT Cerebra is CPCB authorized Producer Responsibility Organization (PRO) undertaking the Extended Producer Responsibility (EPR) commitments for IT and Electronic Equipment OEM's. Cerebra currently is working with Consumer Electronic OEM's viz., Samsung and LG Electronics to fulfill the EPR commitments for both the organizations. 21 Investor Presentation 1 CEREBRA Total IT Solutions AR 150 1001:2003 Company 2 BIZLOG VALUE CHAIN Raises request with Bizlog 3萬 Field Engineer Customer Premise 4 Activities performed depending on the Service requeste Revaluation, Sorting. Packing, Capturing item date & bar-coding Data is shared with Cerebra team for further Action Pickup on Confirmation $5 A Moved to Hub / Warehouse at the Location CERRA 6 On confirmation for movement, the collection is shipped to Cerebra factory ◀公▶T#22Extended Producer Responsibility (EPR) EPR laws came to force in India in 2016 but have been enforced more strictly from 2018. Both ITEW & CEEW Producers have to comply with EPR laws, thus giving an opportunity as below CEEW EPR Targets FY22 MT ITEW EPR Targets FY22V MT Televisions 345,446 Personal Computers Refrigerators 1,132,954 Washing Machines 241,356 Laptops Notebooks Air Conditioners 246,713 Printers 42,284 12,480 6,442 43,040 Cerebra's Achievements FY21 Recycled 6747 MT 7.07 crore Downstream Materials Sales 12 Crore EPR Revenue 22 Investor Presentation Recycling Product Collection Product Design Producer Responsibility Product Use Mate Sourcing CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT Production ◀公▶T#23IT E-WASTE RECYCLING In India, during pre-covid-19 about 11 million units of new PCs. are sold in 2019 and about 12 million refurb PCs are sold. With a lifecycle of an average 5 years, there are millions of PCs which are scrapped annually for recycling. 23 Investor Presentation CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT TITTI IC & Other Gold Plated Components Computer Scrap: Printers, Keyboards and Monitors 2 Computer Wires PCB & PCBA e-Waste A Semiconductor Wafer ◀公▶#24PC REFURBISHMENT In 2019, Cerebra has opened state of art PC refurbishment centre in its 12 acre facility in Narsapura Industrial Estate. 2020/07/27 14:30 24 Investor Presentation PARTS STORE PARTS STORE CERTIFIED REFURBISHED CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ◀公▶T#25CEREBRA EXPERIENCE CENTRES Cerebra's ACHIEVEMENTS FY21 33 Cerebra Experience Centres Pan India Franchisee and Cerebra Owned Stores ☐ CEREBRA GREEN L7 YOUR E-WASTE SOLUTIONS EXPERT "It is a high margin business," says Anil Talreja, Partner at research firm Deloitte Haskins & Sells, who tracks the consumersector. "Earlier, the refurbished market was dominated by the grey market and unorganized local retailers," he explains. Now, this market is being taken up by organized players who provide warranty, repairs with genuine parts and also after sales services. 25 Investor Presentation ◀公▶#2626 Investor Presentation Q1FY22 Financial Highlights B CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ◀公▶T#27REVENUE CONTINUES TO RECOVER FOR THE 5TH CONSECUTIVE QUARTER Income From Operations Segmental Revenue CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT All figures in Lakhs 4,000 3,500 3,339 3,000 2,481 2,500 2,000 2,971 2,118 1,957 1,859 2,500 2,000 1,500 1,052 917 1,000 500 142 2,056 1,912 1,563 1,42 1,804 1,365 1,172 1,216 1,060 916 753 643 247 95 153 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Refurbishment ■E-Waste Recycling 1,500 1,419 1,195 1,155 Segmental EBIT 1,000 1,500 1,000 1,288 873 704 500 184 820 621 395 275 310 101 135 206 500 Qg5Y20 -500 Q2FY20 Q8FY20 Q4FY20 Q85¥45 Q@бY21 Q3FY21 Q4FY21 Q1FY22 -1,000 -1,500 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 -2,000 -1,861 -2,500 27 Investor Presentation Refurbishment E-Waste Recycling ◀公▶T#28EBIDTA & EBIDTA Margin (%) & 50.3% 888 601 35.8% 36.1% Q1FY20 Reported PAT 1,000 800 600 375 400 200 1207 1025 55.1% -11.9% -1.5% -45 -137 58 6.1% Q2FY20 Q3FY20 Q4FY20 EBITDA QIFYZI Q2FY21 EBIDA Margin (%) Q3FY21 ☐ 818 774 84 618 CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT All figures in Lakhs 24.6% 211 522 10.8% Q4FY21 Q1FY22 342 -200 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 -132 -222 Q4821 -18 Q1FY22 -400 28 Investor Presentation ◀公▶#2929 Investor Presentation B Road Ahead CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT ◀公▶T#30VISION 2030- HUGE MARKET OPPORTUNITY FOR CEREBRA TO TAP AND CONTRIBUTE IN A BIG WAY TO INDIA'S GOAL OF IMPORT SUBSTITUTION . • As per the data provided in Global E-waste Monitor, India ranks third behind USA & China in terms of the total E-waste generated in 2019. China generated over 10.12 million Mt of E-waste in 2019, followed by the USA with 6.91 million Mt and India with 3.23 million Mt. However, in terms of per capita E-waste, India is among the countries with low per capita E-waste with only 2.4 kg per capita in 2019, much lower than the global average of 7.3 kg per capita. China is also marginally less than the global average with 7.2 kg per capita. However, the USA nearly generates 3 times the global per capita E-waste with 21 kg. • The domestic electronics manufacturing sector in India has seen significant growth in the last six years. Production of electronic goods in India increased by 187% from INR 1.9tn in 2014-15 to an estimated INR ~5.5tn in 2019-20, with a compound annual growth rate (CAGR) of about 24% • With continuous growth of consumer electronics & appliances year-on-year, India has been witnessing a faster e-waste generation in recent times with ~28% growth YoY in FY20, while compound annual growth rate (CAGR) of about ~16% in the country over FY15-20. . India is dependent on Chile, China, Congo and several other countries for metals that are critical to the growth expected in several sectors. It is expected that by 2030, the increased use of EEE products combined with a spurt in demand for batteries in the telecom, renewables and transportation sectors, will see the creation of 'urban mines' that India will need to manage appropriately. A robust ecosystem is needed to reclaim these metals and to reduce their imports. • India's E-waste generation projected to rise to 4.5-5 million MT by 2021. With the current growth rate, by 2025, India will be producing 7 million MT of e-waste annually and 14 million MT by 2030.#31Thank you CEREBRA GREEN YOUR E-WASTE SOLUTIONS EXPERT Mr. P. Vishwamurthy- Director Address: S5 Off 3rd Cross 1st Stage Peenya Industrial Area Bangalore - 560 058 Mobile: +91 9845018164 Email Id: [email protected] S-ANCIAL Mr. Vijay Gyanchandani- Investor Relations Address: 215, Shivshakti Industrial Estate, J.R Boricha Marg, Lower Parel (E), Mumbai- 400 011 Mobile: +91 9619438448 Email Id: [email protected]