#1STOVEKRAFT® November 08,2022 To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 543260 Dear Sir/Madam, National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 NSE Symbol: STOVEKRAFT Sub: Investor Presentation for Q2FY23 As per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Investor Presentation for Q2FY23. Kindly note our earnings call is scheduled on November 08,2022 (Tuesday) at 3:30 PM, IST. Please take the same on the record. Thanking you, For Stove Kraft Limited RAJENDR Digitally signed by A GANDHI RAJENDRA GANDHI Date: 2022.11.08 14:29:11 +05'30' Rajendra Gandhi Managing Director Stove Kraft Limited #81/1 Medamaranahalli Village, Harohalli Hobli, Harohalli Industrial Area, Kanakapura Taluk, Ramanagara District, Bengaluru, India- 562 112 +91 80 28016222 +91 80 2801 6209 ☑[email protected] CIN: L29301KA1999PLC025387 Pigeon Gilma BLACK+ DECKER Pigeon live in tomorrow LED stovekraft.com#2STOVE KRAFT LIMITED Q2 & H1FY23 INVESTOR PRESENTATION STOVEKRAFT R#3Safe Harbor STOVEKRAFT This presentation has been prepared by and is the sole responsibility of Stove Kraft Limited (the "Company"). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements." You can generally identify forward-looking statements by terminology such as "aim", "anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective", "goal", “plan”, “potential”, “project”, "pursue", "shall”, “should”, “will”, "would", or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the Company, (d) technological changes, (e) investment income, (f) cash flow projections, and (g) other risks. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. 2#4Q2 & H1FY23 FINANCIAL PERFORMANCE 66T - The only way to do great work is to love what you do - Steve Jobs وو 6660#5Q2FY23 Performance (Y-o-Y) STOVEKRAFT Q2FY23 Revenues INR 406.2 crores +11.9% y-o-y Q2FY23 Gross Profit INR 131.9 crores +12.9% Y-0-Y 02FY23 EBITDA^ INR 47.0 crores +9.2% Y-o-Y Q2FY23 PAT INR 25.9 crores +13.0% Y-0-Y 89,793 Jun-22 No. of Outlets 6,605 Outlets added in Q2FY23 Revenue Breakup: Q2 FY23 96,398 29.7% Sep-22 ^ EBITDA is before allowance for expected credit loss; Rs.1 crore for Q2 FY23. Hv 25.4% 5.9% 10.5% 19.0% 9.5% Pressure Cookers LED Induction Cooktop Gas Cooktp Nonstick Cookware Mixers/Small Appliances / Others 4#6H1FY23 Performance (Y-o-Y) STOVEKRAFT H1FY23 Revenues INR 681.3 crores +18.1% Y-0-Y H1FY23 Gross Profit INR 222.4 crores +16.9% Y-0-Y H1FY23 EBITDA^ INR 69.4 crores +5.8% Y-0-Y H1FY23 PAT INR 34.0 crores -6.8% Y-o-Y 79,225 Mar-22 No. of Outlets 17,173 Outlets added in H1FY23 Revenue Breakup: H1 FY23 96,398 27.6% Sep-22 ^ EBITDA is before allowance for expected credit loss; Rs.1.75 crore for Q2 FY23. 23.7% ₹ Hv 21.1% 9.7% 6.5% 11.4% Pressure Cookers LED Induction Cooktop Gas Cooktp Nonstick Cookware Mixers/Small Appliances / Others 5#7Profit & Loss Statement - Q2 & H1 FY23 STOVEKRAFT Profit & Loss Statement (Rs. Crs.) Q2 FY23 Q2 FY22 Y-o-Y Q1FY23 Q-o-Q H1FY23 H1FY22 Y-o-Y Revenue from Operations 406.2 362.8 11.9% 275.1 47.7% 681.3 577.0 18.1% Cost of Materials Consumed 215.2 217.4 169.8 385.0 346.5 Changes in Inventories of Finished Goods and 51.4 32.4 22.8 74.2 50.9 Work in Progress Manufacturing and Operating Costs 7.8 (3.7) (8.1) (0.3) (10.5) Gross Profit 131.9 116.8 12.9% 90.5 45.7% 222.4 190.2 16.9% GP % 32.5% 32.2% 32.9% 32.6% 33.0% Employee Benefits Expense 36.2 30.3 31.5 67.6 54.1 Other Expenses 48.6 43.4 36.7 85.3 70.5 EBITDA 47.0 43.1 9.2% 22.4 110.3% 69.4 65.6 5.8% EBITDA % 11.6% 11.9% 8.1% 10.2% 11.4% Other Income (0.8) 0.1 (1.5) (2.3) 0.6 Depreciation and Amortisation Expense 7.3 4.8 6.6 13.9 8.9 EBIT 38.9 38.4 1.2% 14.3 172.2% 53.2 57.3 (7.1%) Finance Costs 3.4 3.9 3.0 6.4 6.8 Exceptional Items 1.0 2.5 0.8 1.8 4.8 PBT 34.5 32.1 7.5% 10.6 225.6% 45.1 45.6 (1.2%) Total Tax Expense 8.6 9.1 2.5 11.1 9.1 Profit for the year 25.9 22.9 13.0% 8.1 220.6% 34.0 36.5 (6.8%) PAT % 6.4% 6.3% 2.9% 5.0% 6.3% 6#8Balance Sheet as on 30th Sep 2022 STOVEKRAFT Equity and Liabilities (Rs. Crs.) 30-Sep-22 31-Mar-22 Assets (Rs. Crs.) 30-Sep-22 31-Mar-22 Equity share capital 32.9 32.9 Property, plant and equipment 337.6 309.4 Other equity 366.6 331.1 Capital work-in-progress 4.3 9.2 Total Equity 399.4 364.0 Intangible Assets 4.6 3.0 Financial liabilities Right of use 11.9 0.0 Borrowings 35.2 34.2 Financial Assets Investments 0.0 0.0 Lease liabilities 10.6 0.0 Other Financial assets 5.0 8.2 Deferred tax liabilities (net) 0.0 0.0 Income Tax Assets (Net) 2.5 3.2 Provisions 5.1 6.2 Current Tax Assets 0.0 0.2 Total Non-Current Liabilities 50.9 40.5 Other non-current assets 27.4 20.7 Financial liabilities Total Non-Current assets 393.3 353.8 Borrowings 127.6 121.0 Inventories 254.4 217.4 Lease liabilities 0.7 0.0 Financial Assets Trade payables 247.7 127.4 Trade receivables 189.3 96.7 Other financial liabilities. 28.9 27.9 Cash and cash equivalents 10.4 0.4 Provisions 7.2 5.4 Bank balances 17.1 11.6 Other current liabilities 56.6 42.0 Loans 0.0 0.0 Current tax liabilities (net) 1.2 0.4 Other financial assets 1.3 1.5 Total Current Liabilities 469.8 324.0 Other current assets 54.3 46.9 Total Liabilities 520.7 364.5 Total Current Assets 526.8 374.6 Total Equity and Liabilities 920.1 728.5 Total Assets 920.1 728.5 7#9Cash Flow Statement Cash Flow Statement (Rs. Crs.) Cash Flow from Operating Activities Profit before Tax Adjustment for Non-Operating Items Operating Profit before Working Capital Changes Changes in Working Capital Cash Generated from Operations Less: Direct Taxes paid Net Cash from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Net increase/ (decrease) in Cash & Cash equivalent Add: Cash and cash equivalents as at 1st April th Cash and cash equivalents as at 30" September Sep-22 STOVEKRAFT Sep-21 45.1 45.6 (25.3) (20.5) 70.4 66.0 (7.6) (29.8) 62.8 36.3 (9.4) (8.6) 53.4 27.7 (43.8) (61.3) 0.4 9.8 10.0 (23.8) 0.4 29.5 10.4 5.7 8#10ABOUT STOVE KRAFT LIMITED 66 Success is walking from failure to failure with no loss of enthusiasm Winston Churchill 29#11Key Milestones STOVEKRAFT Gilma live in tomorrow Granted trademark registrations for Gilma sidbi Investments by SIDBI Commenced production at Harohalli facility Commenced exports to retailers in the USA ✓ Achieved sales of 9.1 million units IPO IPO with listing on NSE and BSE 2001 I 2008 2014 I 2018 I 1999 I 2003 2010 2015 2019 I I 2021 STOVEKRAFT Incorporated Stove Kraft as a Pvt. Limited Pigeon Granted trademark registrations for Pigeon SEQUOIA First Investment by Sequoia Certificate of registration of design was granted for our product 'Super cooker' Find your own rant LED Plant in Bangalore & Inner Lid Cooker Plant in Baddi, HP 10#12Diverse range of products across consumer preferences... Gilma BLACK+ DECKER Pigeon Cookware-Pressure cooker, wonder cast cookware, non-stick cookware, electric rice cookers and titanium hard anodized cookware Cooktops and other kitchen solutions -Hobs, glass cooktops, stainless steel cooktops, induction cooktops and chimneys Small appliances -Mixer grinders, rice cookers, electric kettles, toasters, sandwich makers, knives, steam irons, juicers, food steamers, air fryers and electric grills Other products -Emergency lamps, water bottles and flasks, aluminum ladders, cloth dryers, water heaters, dustbins and mops Value live in tomorrow LPG Stoves Massage apparatus Water heaters Chimney Hobs Cooktops Kitchen sinks Small appliances Food processors, juicers, hand blenders, hand mixers, mini choppers, oven toaster grills, rice cookers, coffee makers, toasters, sandwich makers and kettles Other products - Steam irons, dry irons, water heaters and oil fin radiators Multi-brand approach to capture the entire value chain... Semi - Premium Gilma STOVEKRAFT Pigeon LED LED bulbs Battens Downlights Premium BLACK+ Pigeon + Pigeon LED 20+ year old brand One of the market leaders for certain products such as cookware Launched in 2016 and manufacturing commenced in 2019 *Source: F&S Report live in tomorrow • Offers a modular kitchen experience • Comprises chimneys, hobs and cooktops across price ranges and designs . Sold exclusively though Gilma branded outlets, which are owned and operated by franchisees Gilma specific mobile application for customers to raise post sales service requests DECKER • Entered into an exclusive brand licensing agreement with Stanley Black & Decker Inc. in 2016 • Retailer for and provider of post-sales service for blenders, juicers, breakfast appliances, etc. . Separate distribution spread across 10 states 11#13State of the Art Manufacturing Facilities with focus on quality STOVEKRAFT Baddi, Himachal Pradesh Dedicated in-house R&D facility Comprising of 13 personnel and tie-ups with foreign companies for technology enablement ISO 9001:2015 certified Focus on quality is maintained at all stages Sourcing of raw materials Product development Manufacturing stage Bengaluru, Karnataka Rigorous review and monitoring process Subject to a rigorous review and monitoring process undertaken at our Bengaluru Facility Sourcing team and quality assurance team Dedicated sourcing team and quality assurance team based out of China Total ~46 acres with ~30 acres available for future expansion Both facilities have a high level of backward integration, and our manufacturing process is not dependent on third party suppliers and OEMs 12#14Professional Management STOVEKRAFT Mr. Rajendra Gandhi, Managing Director • • • Founder of Stove Kraft with over 21 years of experience Entrepreneur who built Stove Kraft to one of the leading brands for kitchen appliances in India Continues to be closely involved in the day-to-day affairs of the Company and is instrumental in promoting Stove Kraft's culture of innovation Mr. Rajiv Mehta, Chief Executive Officer . • Independent director on the board of Stove Kraft since June 2018 & has been re-designated as the CEO with effect from September 2019 Previously worked as the CEO of Arvind Limited Bachelor's degree in Chemical Engineering from the University of Mumbai and a Master's degree in Science from University of Pennsylvania; MBA from INSEAD Mr. A.S. Balaji, Chief Financial Officer • Chartered Accountant and Cost Accountant over a decade of rich experience in finance, business excellence, process automation & risk consulting. Previously associated with reputed organizations like CavinKare Pvt Ltd and KPMG Demonstrated history of working with private and publicly held companies in diverse industries including FMCG, Logistics, insurance, manufacturing etc • . Ms. Neha Gandhi, Executive Director Holds a Bachelor's Degree in Business Administration from Christ University (Bengaluru) and completed Post Graduation Certificate Program in Sales and Marketing Management from MICA Served as a Graduate Trainee at Viacom18 *Source: F&S Report • Mr. Venkitesh N, Head-Corporate Planning Bachelor's degree in Technology from University of Kerala 25+ years of experience in manufacturing, product development and project management with a stint in BPL for 13 years Mr. Rohit Mago, Head - Baddi Manufacturing Unit B Sc, Government Autonomous Science College, Jabalpur; MBA, Rani Durgavati Vishwavidyalya; Post- graduate certificate in retail management, XLRI Jamshedpur 18+ years of experience including a 14-year stint with HPCL 13#15Backed by Experienced Board • • STOVEKRAFT Ms. Shubha Rao Mayya, Independent Director Holds a bachelor's degree in commerce from the University of Mumbai and is a chartered accountant with the Institute of Chartered Accountants of India Prior experience includes ICICI Limited, ICICI Prudential Life Insurance Company and Tata Consultancy Services Serves as a Director on the board of Ace Manufacturing System Limited Mr. Lakshmikant Gupta, Independent Director • • • Mr. Rajendra Gandhi, Managing Director Founder of Stove Kraft with over 21 years of experience Entrepreneur who built Stove Kraft to one of the leading brands *for kitchen appliances in India Continues to be closely involved in the day-to-day affairs of the Company and is instrumental in promoting Stove Kraft's culture of innovation Mr. Rajiv Mehta, Chief Executive Officer . • Holds a bachelor's degree in economics from Hans Raj College, University of Delhi and a post-graduate diploma in business management from Institute of Management Technology, Ghaziabad Previously associated with Ibibo Group, Procter & Gamble and Girnar Software • • Independent director on the board of Stove Kraft since June 2018 and has been re- designated as the CEO of the Company with effect from September 2019. Previously worked as the CEO of Arvind Limited Bachelor's degree in Chemical Engineering from the University of Mumbai and a Master's degree in Science from University of Pennsylvania; MBA from INSEAD • • Mr. Anup S Shah, Independent Director Mr. Anup S Shah is an Additional Independent Director of the Company. He holds a Bachelor's Degree in Commerce from HR College, Mumbai and a degree in law from Government Law College, Mumbai. He has over 36 years of experience in the field of law, specifically real estate law. He is the founder partner of Anup S Shah Law Firm in Bangalore. Ms. Neha Gandhi, Executive Director Holds a Bachelor's Degree in Business Administration from Christ University (Bengaluru) and completed Post Graduation Certificate Program in Sales and Marketing Management from MICA . She has earlier served as a Graduate Trainee at Viacom18 14#16Shift in Consumption Patterns and Favourable Governments Policies Indian Consumer Appliance Market expected to grow @CAGR of ~9% Indian Appliance and Consumer Electronics (ACE) Market CAGR: 9% 3,150 Kitchen Appliances Market 2,050 2017 2022E Key Growth Drivers STOVEKRAFT (INR Bn) T0 01 Moving towards Aspirational Lifestyle from functional Kitchen tools. ■LCA ■SCA Non Stick Cookware SKL's product mix favorable to I I I market growth trends - LCA and Non Stick growing at 12% and 350 15% 21 02 70 127 207 10 86 111 2020 Need for Space Utilization -Emerging Concept of Modular Kitchen 202 03 03 Growth of E-Commerce and easy Financing options 2025E India Government's Policies Favourable For The Consumer Appliances Industry 04 . Shift from unorganized sector to organized sector in Indian manufacturing with the GST Implementation Awareness of Cookware through Mass Media and Retality Programs • Lower tax brackets (5%, 12% and 18%) used for Indian Kitchen Items vs excise +VAT taxed at ~31% · Make In India Initiative gave ACE market necessary boost which fostered Retail Manufacturing Pradhan Mantri Ujjwala Yojana - Target to provide 5 Crore LPG connection to 59 05 Health and Environment Concerns under privileged women . Majority Kitchen appliances are electricity driven, electricity consumption tripled since 2000 • Niche market for foreign investors, as Govt. allowed 100% FDI through automatic route in the electronic hardware manufacturing sector 06 00 Technological Advancements All information on this slide is obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled "Kitchen Appliances Market in India" dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report"); "E" signifies Estimated 15#17Indian Large & Small Cooking Appliance Market Increasing Market for Large Cooking Appliances (LAC) Large Cooking Appliances I STOVEKRAFT Increasing Trend by Sub Segments - Value (INR Billion) 8 7 21,761 19,955 18,313 14,209 15,453 16,817 52 6 45 6 39 5 5 202 29 52 34 53 SKL is the market 46 179 25 39 34 159 30 141 26 125 111 55 61 67 74 81 89 leader in Free standing hobs and cook tops 2020 2021F 2022F 2023F Volume ('000 Units) 2024F Value (INR Bn) 2025F 2020 2021F 2022F 2023F 2024F 2025F ■Free-standing Hobs ■Cook Tops Cooker Hoods Built-in Hobs Increasing Market for Small Cooking Appliances (SAC) Small Cooking Appliances 60,470 52,613 56,405 64,828 74,511 69,501 I 12 12 18 228 Increasing Trend by Sub Segments -Value (INR Billion) 17 16 15 18 14 17 13 19 332 16 14 27 13 25 23 21 86 93 101 109 118 127 44 48 52 56 60 64 2020 2021F 2022F 2023F 2024F 2025F 2020 2021F 2022F 2023F Volume ('000 Units) 2024F Value (INR Bn) 2025F # ■Mixer Grinder ■ Pressure Cooker ■Food Processors Others * As per market share of retail sales volume; # Others include electric rice cooker, blenders, electric kettle, coffee maker and juice extractor All information on this slide is obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled "Kitchen Appliances Market in India" dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report"); "F" signifies Forecasted 16#18Increasing Market for Non-Stick Cookware Non-Stick Cookware and Indian Household Utility Products 16.8% 11,389 74.1% 10,367 67.0% 9,437 8,590 9.9% 7,819 7,117 21.0 18.0 15.4 13.2 11.3 9.7 2020 2021F 2022F 2023F Value (INR Bn) 2024F Volume ('000 Units) 2025F CAGR Company has prominent position in South India for non-stick cookware · Stove Kraft Limited is the 3rd largest market share (12.4%) by volume in Non-Stick Cookware • It enjoys a prominent position in the Non-Stick cookware market in the southern region Stove Kraft Limited has one of the few facilities in India to have an automated roller coating line for manufacturing of non-stick cookware . It offers special range of products which cater to the regional cuisine of Southern India Latest innovation aimed at product efficiency and user convenience includes a new MIOTM non-stick cookware range - Developed using latest Italian technology ensuring high durability and smoothness - Range has 5 layer 'Scandia' coating Frying Pan 242 216 Tawa Kadai Types of Non-Stick Cookware Used (%) in 2020 56.2% 6.4% Ceramic Cookware 1.9% 1.3% Appachetty Paniyarakk al Household Utility Products – Market INR Billion in 2018 144 Except for Company specific information, all other information on this slide has been obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled "Kitchen Appliances Market in India" dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report") 71 57 T T Water Bottles Dustbin Flasks Emergency Lamps Ladders 52 52 37 Floor Mop Clothes Drying Stand and Bucket 17 STOVEKRAFT Others 35.1%#19A great kitchen brings out the best in you Thank You STOVEKRAFT CIN: L29301KA1999PLC025387 Investor Relations Advisors: σ orient capital +91 97737 78669 [email protected] Mr. Ashish Chovatia +91 99300 44680 [email protected] Mr. Irfan Raeen Contact Person: A.S. Balaji Chief Financial Officer Email Address: [email protected]