#1CERA Sanitaryware Limited Corporate Presentation CERA Style. Innovation. Leadership CLA#2Disclaimer This presentation and the accompanying slides (the "Presentation"), which have been prepared by Cera Sanitaryware Limited 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. This presentation contains certain forward-looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the company. CERA CERA#3CERA CERA Contents Company Overview 4 Management team & Shareholding 6 ESG, Technology and R&D 9 FINITO LUCIDO LUCIDO Marketing and Customer Connect 14 Financial Overview 22 Company owned experience centre 3#4Premier Sanitaryware Company in India Rich Legacy of ~42 years #1 Market Leader in India for Sanitaryware Largest Sanitaryware facility in India CERA ZERO Debt Company 40% PAT Growth (FY23 vs. FY22) Rs.687 cr. Cash and Cash Equivalents* 1,000% Rate of Dividend - FY23 5,462 Dealer Network* Note: * 81 Sanitaryware 618 Faucetware New products introduced since April 2022** As on 31st March 2023 **Includes Lustre Series Rated AA Long Term Debt Rated A1+ Short Term Debt (CARE) Rated AA-/Positive Long Term Debt Rated A1+ Short Term Debt (CRISIL)#5Robust Financial Position and Protocols Zero Debt Company • Cash and Cash Equivalents of Rs. 687 crore; primarily liquid investments • No Contingent Liabilities for Joint Ventures CERA Sharp Focus on Efficient Capital Management • Fixed Asset turnover of ~6.1x1 Uniform organization-wide policy to monitor receivables - credit not used to drive revenues • ERP automatically shuts down fresh supplies to dealers / customers with dues in excess of 45-60 days generation ● Free Cash Flow Positive with Robust Cash Position • Consistent cash generation each year • Annual Capex requirement < Free Cash flow -Dividend + Capex Operating Cashflow 262 156 Increasing gap between annual cash flow generation less dividend outflow and capex 120 122 133 123 106 235 98 27 49 57 61 70 70 44 41 • Regularly paid dividends for the last 30 years + 93 62 73 76 86 62 57 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Note 1: As on 31 March 2023 Financial Discipline is Central to the growth strategy 50#6Promoters CERA Mr. Vikram Somany Founder and CMD B.Sc., FCMI (U.K.) Founded the business in 1980 • Deep industry knowledge and experience • Hands on involvement • Initiation and execution of strategy Drives High Governance Standards Mrs. Deepshikha Khaitan Joint Managing Director B.Sc. Hons. (Economics), LLB • Actively associated with CERA for over 8 years • Involved in Design Innovation, Product, R&D, Channel Outreach, Sales & Marketing. Driving equal focus on profitability & product development. 9#7Leadership Team Mr. Anupam Gupta Executive Director (Technical) • BE in Electrical Engineering and MBA • Over 30 years of industry • experience, - has been a part of various industries like Cement, Textiles, Chemicals and Ceramics; - spending last 17 years in Aditya Birla Group Responsible for all aspects of manufacturing activities at Cera Mr. Ayush Bagla Executive Director ⚫ B.A (Business) from Franklin & Marshall College, USA • 24 year experience in Fund Management and Private Equity • Managing Investor Relations & Strategic Planning initiatives at Cera Mr. Vikas Kothari CFO (Fin. & Accounts) • Total experience 20+ years Responsible for overall Financial function including Financials, Banking, Commercial, Budgeting and Cost Controls. • Has worked with French MNC BIC World-BIC Cello, Aditya Birla Group, Reliance Industries Ltd. CERA Mr. Sandeep Abraham President - Sales • M.Com, PGDMM, Senior Management program in IIM Nagpur ⚫ 27 years of experience Previously held the position of Head of Sales at Roca India (RBPPL), with prior experience in renowned companies such as Parryware Roca, EID Parry (India) Ltd., Nuchem Ltd., Hutchison Max Telecom, and Jabalpur Tractors (Maruti Zen). Mr. V Krishnamurthy President - Marketing • Over 26years of industry experience. • Responsible for all procurement, vendor relations, and after sales service. Mr. Rahul Jain Vice President - Marketing • Extensive experience in the Sanitaryware and Faucetware industry. Previously worked in top MNC's like Roca India (RBPPL), Nippon Paint, Akzonobel and HUL. Responsible for the marketing function and other consumer relevant innovations that deliver measurable improvement in brand equity and market share. Mr. Ajay Jain Vice President (Faucetware Division) • BE Mechanical Engineering • Experience of 23 years; - has been a part of companies like HSIL, Kohler India and Hindalco in the past • Responsible for all aspects of Faucetware manufacturing at Cera Mr. Vivek Andankar Asst. Vice President Production - Sanitaryware • Total experience of 24 Years • Responsible for all aspects of Sanitaryware manufacturing at Cera • Has worked with Kohler, LG Electronics, Electrolux 7#8Ownership and stakeholder value creation Mutual Funds, 9.6% Market Cap. (in Rs. Crore) Promoters, 54.5% Key Institutional Shareholders Nalanda India Equity Fund Ltd. Fils, 18.0% Public Shareholding, 17.9% As on 31st March, 2023 10.0% 63 June '09 8,328 31 Mar. '23 Dividend Distributed (Rs. cr.) CERA Tata MF HSBC Small Cap Fund Government of Singapore & Monetary Authority of Singapore Canara Robeco MF 3.1% 2.4% 65.0 2.1% 1.7% Grandeur Peak 1.4% 45.5 HDFC Life Insurance Company Ltd. 1.3% Vanguard MF 0.8% UTI Small Cap Fund 0.6% 18.8 18.8 20.4 20.4 16.9 Emerging Markets 0.6% 14.2 Union Small Cap Fund 0.6% Vijay Kedia 0.5% IMCO Emerging Markets Public Equity 0.5% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Blend Fund 2 0.3% IDFC Emerging Business Fund 0.3% As a % Sundaram MF Other Institutional Shareholders Total 0.3% 17.0% 18.8% 17.7% 17.7% 17.6% 16.7% 30.5% 31% 8 of PAT 4.3% 30.8%#9Large-Scale and Optimized Manufacturing CERA CERA 5 5 3 5 5A. גגגג 1 1 1#10Quality Control and Process Excellence.. 1 Rapid Technology Adoption -Robotics for Sanitaryware and Faucet Finishing CERA Sanitaryware Robotic Pressure Casting: Faucet Robotic Surface Grinding: For producing high end Sanitaryware Robotic sanitaryware in large quantities Glazing: 248103 Helps in uniform coat of Faucet chromium plating that Peeling Machine: will lead to surface endurance KR-2008 5 First Indian sanitaryware company to implement ISO 9002 and ISO 14001 certifications for Quality Management Systems and Environment-friendly Manufacturing Systems For uniform and faster glazing ensuring smooth surface with minimum wastage For impeccable body finish 10#11Installed 3D printers for Faucet design - A complete automated design Design Excellence and deep technology imprint CERA First Sanitaryware Company to design and CERA aha! 3D install 3D printers ProtoCentre 1M ProtoCentre 999 process Successfully installed 3D printers which has considerably shortened the duration for conversion of concept into launch for new designs 11 114#12Concerted Focus on ESG... 1 VV Annual Green Energy Generation & Consumption Mill KWH www Generation Consumption 20.9 20.5 17.8 18.8 20.5 22.4 22.2 18.1 14.1 14.6 15.7 12.5 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 Environment CERA Sustainability is at the heart of CERA's being. Amongst various initiatives: • Non-Conventional Energy generation via wind and solar was initiated in the year 1995 Capacity of Non-Conventional Energy generation of the company is 10.325 M.W • Sanitaryware and Faucetware plants in Gujarat meet more than 56% of the energy needs through non conventional captive generation • 100% of Sanitaryware production energy needs met through natural gas • Natural gas being procured below open market pricing from isolated wells ➤ Appreciated and acknowledged by customers as a completely sustainable and 'green' Vendor 12 12#13Sustainability ... 2 Year on year downward trend in specific consumption of utilities. Water Consumption wrt sent to warehouse (KL/MT) Gas Consumption wrt sent to warehouse (SCM/MT) 9.8 6.3 4.8 475 CERA Power Consumption wrt sent to warehouse (KWHr/MT) 820 360 304 596 474 2020-21 2021-22 2022-23 2020-21 2021-22 2022-23 2020-21 2021-22 2022-23 COL PLANT Upgradation of Zero Liquid Discharge (ZLD) plant Increase Plantation 90% Water Recovery • Treatment Optimization . Reuse of Waste Chemicals Reduction of Solid Waste 13#14Strong Brand Promise - CERA's product portfolio encompasses every aspect of the price and design matrix - Niche brands for deeper engagement with varied customer and market segments CERA A LUXURY PREMIUM MID ISVEA 1962 ITALIA Senator by CERA ISVEA Senator 20 CERA CERA MASS JEET Brand Promise carefully cultivated over 40 years by consistently delivering on quality, value, expectations 14#15Multi layered Marketing Infrastructure.. 1 CERA Style Studio Company Display Centre 11 CSS: Ahmedabad/Kadi/Mumbai/Morbi/Chennai/Kolkata Thiruvananthapuram/Chandigarh/Hyderabad/Cochin/ Bengaluru ➤ Discerning customers including influencer's can touch and feel products No sales orientation/pressure The average size these company owned showroom are approx. 7,000 sq.ft. ➤ With more than 14,000 sq.ft. of display, Hyderabad CSS is the largest company showroom in this industry CERA SVEAPTE SEKURA CERA SENTOWE#16Multi layered Marketing Infrastructure.. 2 CERA Style Gallery CERA Style Galap ➤ 183 CSGs: Covering pan India (Dealer Owned) ➤ Complement/Substitute CSS Filters include showroom location, size of display area allocated, sales turnover history and commitment of the dealer Exclusive display in a marked area that will highlight products Trained sales team helping purchase decisions of customers ➤ Minimum size of showroom averages 1,500 sq. ft Sen CERA 16#17Multi layered Marketing Infrastructure.. 3 CERA Style Hub CERA CERA ➤ 109 CSH: Covering pan India (Dealer Owned) Expanding the brand presence in B & C Cat. towns Exclusive display in a marked area that will highlight products ➤ Minimum size of showroom averages 1,000 sq. ft CERA Welcome to Cera Style Hub ERA BRAX 17 17#18Multi layered Marketing Infrastructure.. 4 CERA Style Centre EERA Style CERUS ➤ Enhances retail experiences, retailer owned ATHULYA TRADERS CERA ➤ Currently 644 Style Centre operational ➤ Over 600 CSCs planned in the next 2 financial years Retailer does not have to pay for display furniture CERA CERA CERA 18#19Multi layered Marketing Activities.. 5 CERA, onboards Kiara Advani and Vijay Deverakonda as brand ambassadors. Consistent investments across consumer touch points to enhance the overall market potential Creating a strong brand recall in consumers minds New Brand Campaign launched 'CERA. This is your space, Play it your way' • CERA #TOUCHLESSINTELLIGENCE CERA CERA The new brand communication has been unveiled in TV, Digital, OTT and other platforms. The campaign features CERA's wide range of sanitaryware, faucets, and tiles with the latest styles and technology showcasing the versatility of the collection, that it has something for everyone. 19#20Multi layered Marketing Activities.. 6 CERA CERA Superstar retailer loyalty program is specially curated to win bundles of exclusive rewards, benefits and privileges at every level of performance. CERA super star Retailer Loyalty Program CERA COMING SOON CERA super star FASTEST GROWING CERA Retailer Loyalty Program CERA super star A MORE REWARDING EXPERIENCE FOR YOU! DOWNLOAD TODAY ANDROID APP ON Google play super star 12000 SCAN HERE Members ENROLLED AND MANY TO COME TO SIGN IN TO ANDROID APP JOIN US DOWNLOAD TODAY SCAN HERE TO SIGN IN TO IOS APP 15,000+ enrolments in less than 1 year CERA super star WE BELIEVE IN STRONG BOND Thank You to our 14K HAPPY Superstars 20 20#21Customer Focused and Customer Centric After Sales Servicing Team - On Company's Books • 13 service offices • 43 officers attending technicians • 417 technicians to attend complaints spread across every state • Periodical training on products for better quality service Mobile app CERA Mobile app for trade as New CRM module for customers to register complaints well to register complaints of their clients Complaints closed within 1 to 2 working days Nationwide Toll free number 1800 258 5500 Servitium CRM User Registration Varrancy Fangetration State of Service Bloquest Customer App Produe Registration Service Re Feedback Customer Exaation/ Cemecer Branded App Google Play App Store Servitium CRM> Dealer App Customer Dealer Registration Product Registration BITTON Registration Warranty Registration Service Request Customer Branded App Google Play App Store Customer App Dealer App 21 21#22Financial Overview Revenue (Rs. in crore) EBITDA (Rs. in crore) 1,796 1,442 1,344 1,193 1,209 1,202 206 182 178 172 244 323 PAT (Rs. in crore) 115 116 100 101 ill 149 210 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Networth (in crore) Working Capital Days (net) ROCE (%) 24% 24% 69 107 104 103 1,169 94 1,006 874 773 700 605 59 illlii 71 تتلا CERA EPS (in Rs.) 161.20 88.46 89.15 77.08 III 77.89 114.84 FY18 FY19 FY20 FY21 FY22 FY23 ROE (%) 19% 19% 18% 16% 16% 23% 20% 12% FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 22#23Abridged P&L - Standalone - Period ending 31 March 2023 CERA Particulars (Rs. crore) Revenue from Operations Other Income Q4 FY22 Q4 FY23 Y-O-Y Shift FY22 FY23 Y-O-Y Shift 438.68 5.89 530.38 13.04 21% 1,441.76 1,796.19 25% 121% Total Income From Operations (Net) 444.57 543.42 22% 22.78 1,464.54 1,833.61 37.42 64% 25% Total Expenditure: 356.27 445.28 25% 1,220.51 1,511.05 24% Raw Material expenses (costs of material consumed) 204.12 247.91 21% 681.00 821.75 21% Employee benefits expense 52.10 54.55 5% 190.75 211.30 11% Other expenses 100.05 142.82 43% 348.76 478.00 37% EBITDA (includes Other Income) 88.30 98.14 11% 244.03 322.56 32% EBITDA margin (%) 19.9% 18.1% -180 bps 16.7% 17.6% 90 bps Finance Costs 1.52 1.90 25% 4.59 5.40 18% Depreciation and Amortization 7.77 7.79 0.3% 30.43 30.44 0% Profit Before Exceptional Items 79.01 88.45 12% 209.01 286.72 37% Exceptional Items -5.74 -5.00 na PBT 73.27 83.45 14% -5.74 203.27 -5.00 na 281.72 39% Tax expense 21.19 20.51 (3%) 53.91 72.07 34% PAT 52.08 62.94 21% 149.36 209.65 40% 23 PAT margin (%) 11.7% 11.6% -10 bps 10.2% 11.4% 120 bps#24Thank You For further information, please contact: Siddharth Patel / Ayush Bagla CERA Sanitaryware Limited Phone: +02764 243000 / 022 4295 8370 Email: [email protected] [email protected] Mayank Vaswani / Devrishi Singh CDR India Phone: +91 98209 40953/98205 30918 Email: [email protected] [email protected] CERA PEARL CASTING CERA 2