#1WELSPUN INDIA Home Textiles Investor Presentation Welspun India Limited Home Textile | Advance Textile | Flooring July 2022 NSE: WELSPUNIND Bloomberg: WLSI:IN Reuters: WLSP.NS welspunindia.com Christy ENGLAND SPACES BED BATH RUGS Ⓡ WELSPUN BED N BATH WELSPUN FLOORING AUTHENTIC WEL-TRAK FIBER HYGRO traced tracked trusted" COTTON#2Inside this Presentation Welspun Group Welspun India Market Opportunity Welspun 2.0 Brands Advanced Textile Flooring Solution E-Commerce Innovation Digitalization ESG Robust Financial Performance Prudent Capital Allocation Strategy Investment Rationale 03 04 12 16 19 24 25 27 29 30 32 36 41 44#3Welspun Group Global Conglomerate The USD 2.3 Bn Welspun Group is one of India's fastest growing global conglomerates with business interests in Line Pipes, Home Textiles, Infrastructure, Steel, Advanced Textiles, Warehousing and Flooring solutions. The group has a strong foothold in 50+ countries and its clientele includes Fortune 500 companies. USD 1.4 Bn USD 2.3 Bn Revenue Net Fixed Assets 26000+ Workforce welspunindia.com 9 Manufacturing Facilities in India, USA, and Saudi Arabia. WELSPUN INDIA HOME TEXTILES WELSPUN CORP PIPES AND PLATES Global leader in Home Textiles WELSPUN ENTERPRISES Infrastructure & Energy Amongst world's largest Line-Pipe manufacturers WELSPUN ONE Logistics Parks Robust portfolio of Roads & Water Infra projects Integrated Grade-A Warehousing Solutions 3#4Welspun India - Who are we? ↑#5Welspun India - Global Home Textiles Leader Christy ENGLAND SPACES BED BATH RUGS WelHOME. BY WELSPUN الله THE CHAMP NSHIPS { Textile Solutions for Better Living WELSPUN INDIA HOME TEXTILES WIMBLEDON MARTHA EWART WELSPUN BED-N-BATH- LIVING BY Chrisly SCOTT LIVING KINGSLEY Diversified Brand & License Portfolio WELSPUN INDIA ADVANCED TEXTILES HYGRO COTTON Multipronged E-Commerce Strategy to accelerate growth & capture larger share of the fast-growing market WEL-TRAK 2.0 BLOCKCHAIN BY WELSPUN WELSPUN FLOORING Strong Emerging Businesses: ◆ Flooring Solutions disrupting the world of flooring ◆ Advanced Textiles dealing with innovative product applications welspunindia.com Thought leader Tamper-proof Blockchain platform for state-of-the-art transparency for All Fibers & All Product Categories spun threads with a soul ESG Focused organization with well-defined principles, roadmap and targets A certified woman owned business with >25% women in a 24,000+ strong workforce Welspun India Ltd (WIL), part of $2.3 bn Welspun Group, is a global leader in the Home Textiles landscape. With a strong global distribution network and world-class vertically-integrated manufacturing facilities located in India, Welspun is strategic partners with top global retailers. WIL is differentiated by its strategy based on Branding, Innovation and Sustainability. 5#6Strong Global Presence Key Customer Partnership North America Walmart COSTCO KOHL'S WHOLESALE UK & Europe TESCO --- John Lewis ⭑macy's IKEA Sainsbury's BED BATH & BEYOND wayfair Sam's CLUB amazon IHG InterContinental Hotels Group M MARRIOTT HOME DEPO Over 50 Countries Presence AMERICA'S FLOOR SOURCE Shaw FLOORS QVC Ruchan LIDL JYSK Dunelm ÁSDA headlam MSI LOWE'S Carrefour group plc India SHOPPERS STOP Home Town Ab ghar banana kitna aasaan! D Mart M Myntra Himalaya SINCE 1930 ROW @home® by Nilkamal LET'S MAKE LIFE BEAUTIFUL lifestyle Oberoi YOUR STYLE, YOUR STORE, HOTELS & RESORTS Unilever the warehouse/ homecentre DANUBE HOME Making Your Home. So Easy Now! BIG BAZAAR NAYE INDIA KA BAZAAR TAJ unicharm SHERIDAN EST. 1967 ニトリ NITORI GFC welspunindia.com#7360 degrees capabilities from Farm to Shelf welspunindia.com 6. Environment, Social, Governance (ESG) 5. Sales & Marketing Support RiD 1. Consumer Research & Innovation 360° Value Chain Management 2. Integrated Manufacturing 4. Digital & Analytics 3. SCM & Warehousing 1. Well Researched Innovative Offerings backed by deep Consumer understanding 2. Vertically integrated facilities with seamless connectivity to Global Supply chains 3. Global Distribution footprint 4. Digital Transformation across the organization 5. Strengthening Brand portfolio & Omni-channel capabilities 6. Socially Responsible, Sustainability Focused ESG WORLD Click here for more details 7#8Vertically Integrated presence with Significant Capabilities Particulars Bath Linen Bed Linen Home Textile Rugs & Carpets Advanced Textile Spunlace Needle Punch Wet Wipes UOM Annual Capacity MT 85,400 Mn mtrs 108 Mn sq mtrs 12 MT 27,729 GLOBAL LEADER IN HOME TEXTILES MT 3,026 Mn Packs 100 Annual Capacity Particulars UOM Flooring Solutions Flooring Mn sq mtrs Expected* 27 Current 18 Watch Welspun Manufacturing Facility Tour *Expected Capacity at Full Capex | operationally based on business needs by making small investment in balancing equipment Note: welspunindia.com 8#9AWARDS & RECOGNITION Feathers in our cap NASSCOM® Industry 4.0 2022 Artificial Intelligence for Towel counting & Defect detection TESCO Sustainability 2022 Community Sustainable award for ESG efforts ニトリ NITORI Product Development 2022 FROST SULLIVAN Sustainability 2022 Awarded by Frost & Sullivan and TERI under 2 categories in Sustainability FUTURESCAPE Sustainability & CSR 2021/2020 Amongst Top 100 Companies in India Excellence in Product development dun & bradstreet Industry Performance 2021/2022 Outstanding performance for Textile category Walmart ED HYUNDAI LEADERSHIP SUMMIT ON NEWS India Sotheby's Watch video Read More Recognized by Walmart as trusted partner for 20 yrs in recent corporate announcement business today Our CEO Dipali Goenka selected as one of most powerful women in business TEXPROCIL Highest Exports 2010-2021 Platinum award for Highest global exports. Winning for 11 years in a row Home Textiles Today Supplier Titan 2020 IKEA Innovation 2020 Response to COVID & stakeholder support Innovation partner for Home category and many more... SUPERFACTORIES WELSPUN FRIDAY 8 PM NATIONAL GEOGRAPHIC Welspun's manufacturing facilities featured in National Geographic "Superfactories"#10Leadership Board of Directors Mr. B. K. Goenka CHAIRMAN Amongst India's most dynamic businessmen ◆ Past President ASSOCHAM (2019) Recipient of Asian Business Leadership (ABLF) Award, 2019 Mr. K.H.Viswanathan INDEPENDENT DIRECTOR, AUDIT COMMITTEE CHAIRMAN ◆ Qualified cost and works accountant with over 34 years of experience. Expert in Audit, Tax & Legal, Structuring, Business Strategy, M&A Ms. Anisha Motwani INDEPENDENT DIRECTOR ◆ 28+ years experience in advertising, auto-manufacturing, financial and health services. Currently advisor to World Bank. Voted among '50 Most Powerful Women in Indian Business' by Business Today for 3 consecutive years Mr. Pradeep Poddar INDEPENDENT DIRECTOR ◆ Technocrat & Corporate Leader with 30+ years of experience in consumer products industry and vast experience in brand building Mr. Arvind Singhal INDEPENDENT DIRECTOR ◆ MBA from University of California, founded Technopak, India's leading management & operations consulting firm with focus on Textiles, Retail, Healthcare etc. welspunindia.com Management Team Mr. Rajesh Mandawewala MD; MEMBER OF BOARD ◆ Qualified Chartered Accountant; Played an instrumental role in establishing Welspun's Textile & Pipe business ◆ Leading new strategic initiatives of the Group Mr. Cherian Thomas CEO (ADVANCED TEXTILES) ◆ 24+ years of experience across diverse functions & global functional expertise ◆ Worked with Essel Propack, ITW Signode, Packaging India Private India Limited, Amcor Flexibl Ms. Dipali Goenka CEO & JT. MD; MEMBER OF BOARD ◆ Driving force behind Welspun's global leadership in home textile with focus on Innovation, Brands & ESG ◆ Graduate in Psychology & completed Management Program from Harvard Mr. Mukesh Savlani CEO (FLOORING -EXPORTS) ◆ Home-grown CEO with 17+ years experience in various roles at Welspun; Engineering graduate ◆ Leadership Program from Harvard Mr. Sanjay Gupta President (Finance) and CFO ◆ 29+ years of experience in corporate finance, accounts, strategy and M&A • Worked with organizations like Tata Tesco JV, Bata, Glenmark Pharma, Roche, etc. Ms. Manjari Upadhye CEO (Domestic Business) ◆ 20+ of rich experience & expertise in Strategic Portfolio management, Consumer Insights, Advertising and Innovation domains. ◆ Experience in FMCG sector with leading international marquee brands like Colgate, PepsiCo, Mondelez etc. Mr. Keyur Parekh Global Head (HOME TEXTILE) 18+ years of experience in Sales, Marketing and New Business Development in International markets ◆ Instrumental in forging Strategic partnership with Top Retailers & Hotel chains across the globe Mr. Ravi Panicker HEAD (CHRISTY) ♦ 26+ yrs. experience in Retail Sales, Ecommerce & Category ◆ Previously worked with Raymond, Bombay Dyeing among others 10#11welspunindia.com 1.16 (x) 1.09 FY18 Net Debt to Equity 1.00 61,318 0.64 FY19 Total Income (Million) 66,084 0.56 Trend of Financial Performance 68,362 74,080 FY20 FY21 FY22 93,773 ROCE (%) 12,046 EBITDA (*Million, %) 19.6% 11,467 FY18 FY 19 FY 20 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 11.3% 10.9% 12.3% 13.8% 11 13.4% 19.2% 19.2% 17.4% 15.2% 13,098 FY21 14,198 FY22 14,246#12HC FARMHOUSE Market Opportunities ↑#13Global Home Textile Opportunity Global Home Textile Market (USD Bn) Addressable US Home Textile Market (2020) (USD Bn) (Wholesale level) 176 150 4.1% Market Composition US 31% 60 49 Europe 34% CAGR ROW 35% $6.3 Br Bn Strong Presence of Welspun 2020 2025E a Cotton Pillowcase Retail Level Wholesales Level India Home Textile Market (USD Bn) (Retail level) 13.2% 7 13 CAGR 2020-21 2025-26 E Source: UN Comtrade, Wazir Analysis, OTEXA welspunindia.com $0.3 Bn b Cotton Sheet $1.2 Bn e Floor Coverings Next Opportunity for Welspun d Cotton Bedspreads $0.9 Bn $2.4 Bn C Cotton Towels $1.4 Bn Addressable market size is $1.7 bn and is expected to move up to $3.2 bn by 2025 ◆ US is a large and homogenous market making it more attractive. While US is a level playing field, Europe market is heterogeneous and provides preferential tariff rates to some competing countries. ♦ India remains one of the fastest growing markets. 13#14Global Advanced Textile Opportunity ~5% CAGR US 25% Europe 22% China 13% Japan 07% India 05% Global Advanced Textile Opportunity (2020) ($ 180-190 Bn) $ 33 Bn Global Addressable Opportunity (2020) ◆ Market growing at 5% CAGR ◆ Post Covid Health & Hygiene has seen focus ◆ MEDITECH - growing healthcare infrastructure, further accelerated by Covid-19 remains the key driver ◆ MOBILTECH - one of the biggest segments, automobile demand remains key driver Advanced Textile End User Industry Segmentation (In %) PACKTECH 41% CLOTHTECH 07% Other 28% ◆ Multiple Industrial Applications INDUTECH 11% MOBILTECH 10% PROTECH MEDITECH 05% Indian Market ◆ Overall Market Size is ~$10 bn. ◆ Underpenetrated consumption of technical textiles in India, still at 5-10% against 30-70% in advanced countries HOMETECH SPORTECH 10% 07% BUILDTECH 04% 03% AGROTECH 02% OEKOTECH 01% Area of focus welspunindia.com Source: Invest India, Company estimates 14#15Global Flooring Opportunity Global Flooring Market (2020) - USD 290 Bn ~5% CAGR Addressable Global Market for Welspun (2020) - USD 20 Bn ◆ 50% Broadloom USA $10 Bn Market ◆ 25% Carpet Tiles → 25% LVT Asia Pacific 131, 45% USA 116, 40% Europe $7.5 Bn Market Europe 29, 10% Others 14,05% 40% Broadloom ◆ 35% Carpet tiles ◆ 25% LVT Addressable Indian Market Overall Indian Flooring market is around ₹ 50,000 crores & growing, of which 90% is for new construction and 10% is renovation. Addressable market in India is ~ *6,000 Crores ◆ Higher Disposable Income & Industrialization to remain key drivers Source: Floor Covering Weekly (July 2020), Ceramic World Review (Aug/Oct 2020), and Company Estimates welspunindia.com APAC $3 Bn Market 15% Broadloom ◆ 35% Carpet tiles ◆ 50% LVT ♦ With China + 1 strategy being followed by global market, export opportunity has opened up for countries like India. 15#16Welspun 2.0 ↑#17Evolution of Welspun India Phase I Till 2010 Phase II: 2010 - 2020 Phase III: Going forward Transforming from being textile manufacturer to ranking Global #1 integrated Home Textile manufacturer ◆ Transforming from a manufacturing company to brand-oriented, Direct to Consumer company Transforming into an end-to-end solution provider and strategic partner to global retailers with consumer-led innovation as its bed-rock Evolving to Welspun 2.0 with 6 key value drivers Growth Drivers Brands Emerging Business ◆ E-Commerce Value Enablers ♦ Innovation ◆ Digitalization ESG welspunindia.com 17#18Welspun 2.0 Growth drivers Breathe easy. Sleep happy. SPACES THE FABRIC OF HAPPY HOMES spaces.in a Brands Emerging Businesses Brand Portfolio Owned & Licensed welspunindia.com Flooring Advanced Textiles (part of home textile) Christy FREE CUSHION 01- Thouse from TRACTOR CUEN IN THE BIKET E-Commerce Value enablers WEL-TRAK 2.0 BLOCKCHAIN BY WELSPUN Where it comes from matters. Innovation Shank Sa.. Swich Cana Digitalization ESG Multi-pronged E-commerce Strategy Thought leader in Home Textiles Organization wide transformation Encompassing all stakeholders with defined roadmap 18#19Brands: Dominating Global Consumer Landscape 3. Brand Strategy 1. Strengthening owned and licensed portfolio Securing additional shelf space welspunindia.com Owned Brands India SPACES BED BATH RUGS Ⓡ WELSPUN FLOORING Penetration of consumer business across geographies WELSPUN BED N BATH Licensed Brands India THE CHA 4. Alternate Revenue Streams WIMBLEDON ILLUMINATION DESPICABLE ME MINION MADE Global Christy ENGLAND. KINGSLEY WELSPUN BASICS. ESSENTIAL HOME TEXTILES MARVEL Disney Global THE CHA MP PIONSHIP WIMBLEDON American Cotton AMERICAN PRIDE IN EVERY THREAD M LIVING BY Christy WelHOME. BY WELSPUN { Textile Solutions for Better Living STAY WELL SCOTT LIVING 19#20Owned Brands - Domestic SPACES BED BATH RUGS R WELSPUN BED N BATH Festive Collection: Rangana Campaign Launch of Healthy Life Campaign: Anti Viral Brand Positioning ◆ Premium ◆ Thoughtfulness Presence • 2,402+ outlets ♦ 380 towns ◆ 240 Shop in Shop locations Early Success ◆ Leading brand on Myntra in home category Improved brand awareness ◆ Foray in mattress category with Yours'n'mine range ♦ Mass ◆ 7,833+ outlets ◆ 495 towns ◆ 125 Distributors ⚫ #1 distributed Brand of HT in Home Linen in the country* ◆ Significant improvement in brand awareness Note: *As per 3rd party research Click here to view Here's a gift you'd rather give yourself. Rangana SPACES THE FABRIC OF HEALTHY HOMES Click here to view Regional Festive Campaign: Chalo Paltai 'Welspun' Campaign: Dono Taraf Khushiyan WELSPUN 2in1 Reversible Bedsheet PRESENTS #ChaloPaltai Click here to view Now starting at 1299 WELSPUNⓇ 2in1 Reversible Bedsheet presents #DonoTarafKhushiyan Click here to view welspunindia.com 20#21Domestic Business Opportunity Market size Addressable market size is currently about 12,000 cr. and is expected to move up to 23,000 cr. by 2025. Major part of market is unorganized and unbranded Brand Strategy Dual Brand Strategy: Welspun brand for Mass market segment and Spaces for Premium segment Approach Enhance our Brands repute via Trust, Quality and Availability. Innovation product offerings based on consumer needs & pain points Aiming to be "Har Ghar Welspun" ◆ To be Leader in home textiles space in India by 2023 Innovative, Quality products, available at arm's length ◆ Nationwide presence -in urban and rural & be preferred partners for every Modern Trade and Marketplace Retailer Brand Penetration Particulars Spaces BY 2025 Welspun Households Target # Outlets 1,000 Cr business by FY25 welspunindia.com 8 Lakhs 4,400 BY 2025 20 Lakhs 23,000 21 21#22Owned Brands - Global Christy LIVING BY ENGLAND Christy Brand Positioning ◆ 170-year-old heritage ♦ Luxury Presence Moving from Phygital to Global Digital ◆ Repositioning for Millennials Early Success ◆ About 30% Christy business now comes from E-Commerce channel welspunindia.com LOT RFederer Y '03 '04 '05 '06 '07 '09 '12 '17 WIMBLE WIMBL 201 Christy 22 22#23Licensed Brands Licensed brand brings us new opportunity pockets by opening-up new channels and shelf space without cannibalizing our existing business Expected annualized revenue from licensed brands to cross $100 mn run-rate by Q4 FY23 I MARTHA M STEW A Martha Strong performance across channels ◆ Healthy contribution coming in from E-Commerce ◆ Strong performance across Retailers & specifically with largest WH clubs store format ◆ Top Rated' programs status credentials Expanding beyond North America - Brazil, Mexico, etc SCOTT LIVING TM ◆ Scott Living and Welspun plan to reach wider consumer base with innovative bed & bath linen products ◆ The brand has been able to create healthy interest & generate a pipeline for FY'23 across WH clubs & Department Stores formats alike welspunindia.com Scott Living 23#24Advanced Textiles Emerging segment of textile products ♦ Innovative product applications ◆ Facility located in Anjar (Gujarat) and Hyderabad (Telangana) in India ◆ High demand for PPE products & disposable solutions due to changing consumer behavior towards health & hygiene Wet Wipes ◆ Tailor-made wet wipes for end applications like baby care, personal hygiene, cosmetics, industrial use, and home care. ◆ Manufacturing partners for brand launches and category extensions with innovative product claims and solutions for packaging, lotion formulas, and substrates onal Certifications Organization for Standar ISO 9001:2015 PEFC welspunindia.com GERTIFIED CERTIFIED ISO ISO/TS XXXTXX 14001:2015 COMPAN FSC FSC™ C110879 onGood 16949:2009 COMPANY turing Manufactur GMP Quality Spunlace Born from innovation and refined by Hydro- Entanglement non-woven technology, SPUNLACE is expanding its global presence. ◆ Catering to medical disposables, hygiene, and cosmetic industries. Successfully tested for manufacturing Aerospace cleaning material Needlefelt ◆ Needlepunch is engineered for applications like Air filtration, EAF (Engine air filter), Liquid filtration Industrial oil, Fuel, Food & Beverage, Paint, Pharma, 24 14#25Flooring Solutions WELSPUN FLOOSIN Technologically advanced Flooring Solutions ◆ Flooring for Home, Hospitality and Commercial segment. ◆ Aiming to revolutionize the renovation segment of Indian flooring market. Flooring still considered as part of construction activities, with no concept of modular flooring. ◆ Quick turn-around time and hassle-free installation. • Only company to manufacture hard & soft flooring solutions under one roof. ◆ Positive traction from overseas especially in hard flooring Flooring awards CERTIFICATE OF COMPLIANCE SCS Global Services does hereby certify that an independent assessment has been conducted on behalf of Welspun Flooring Limited Sy. No. 190, Chandani Village, Shabad Mandal, Rangareddy District, Telangana, 501503, India Greenfield Fully Integrated facility spread over 600 acres of land in Telangana Annual Capacity of 27 Mn Sq.Mt. Warranty (5-15 YEAR) Only company to offer warranty in flooring industry INNOVATING TO TRANSFORM THE FUTURE OF THE FLOORING INDUSTRY Fusion flooring A highly customizable unique mix of hard and soft flooring a WELSPUN FLOORING LIMITED Certificata men Has demonstrated the operation of a management system that is compliant with the requirements of ZERO Zero Waste Standard with 98% Diversion from Landfill WASTE PROGRAM GREENGUARD SPC Certified Standard(s): SCS Zero Waste Standard v1 November 2020 The scope of this certificate shall be limited to: The facility listed above has achieved 98% Waste Diversion for the following waste streams: CERTIFIED Get Shante encamins and mang Recycled: 71.35% Reclaimed: 3.89% Co-Processed: 5.10% Composted: 8.79% GREENGUARD Gold Certification Criteria Building Products and Interior Finishes Stored: 8.38% Maximum Allowable CAS Number Predicted Concentration Units This certificate was issued by SCS Global Services for compliance with the Zero Waste Standard TVOC Formaldehyde 022 mg/ma Certificate Code: SCS-ZW-0001 973 gm 0.043 Valid from 22 June 2021 to 21 June 2022 4-Phenylcyclohexene Pace Matter less than to u -Methyl-3-pymolainana a Individual VOCs 58 30 gme vam C Greenguard Gold certificate welspunindia.com SCSglobal Stanley Mathuram, P, Vice Presiden 2000 Powell Street St 600 CA SCS Global Zero Waste certificate 徊 Making Inroads in Global Markets India's First company to create anti-viral flooring 95 Distributors & ~1,100 Dealers appointed pan-India India's largest LEED certified production facility 25#26Flooring Product Offerings Click N Lock® Tiles Carpet Tiles Wall to Wall carpets Greens Features Features Features Features Healthy Floors Highly Durable Multiple Design Possibilities Anti-viral Multiple Design Possibilities Anti-viral No Cropping No Watering Less than a day installation Noise & Dust Free Installation Easy to Install & Maintain Provides Sound Insulation Stain Resistant Provides Heat Insulation In-built Drainage System welspunindia.com 26#27E-Commerce - Multipronged strategy to drive growth 3 Geographies in focus US UK India + Ecommerce Channel Growth Brand.com Marketplaces Retailer.com Notes: • • PIM -Product Information Management GC3-Global Command & Control Centre COE-Center of Excellence Value WELSPUN BASICS ESSENTIAL HOME TEXTILES Earth Friendly SPACES BED BATH RUGS Ⓡ welspunindia.com Strong Technology Back-end Tech-Stack: Middleware ি Right Organization COE Org Model Capability Build & Grow Branded Business Robust Supply Chain Own Brand Inventory Planning License Brand Network Design PIM Analytics GC3 Health & Wellness Fashion MARTHA M TEWAR LIVING BY Christy WelHOME. BY WELSPUN { Textile Solutions for Retter Living } SCOTT LIVING Luxury Christy ENGLAND 27#28Well-researched offerings backed by deep consumer understanding Enables us to develop relevant Consumer Solutions and Innovations in Sleep, Comfort. Wellness & Performance ◆ Guides our decision making with regards to product development, consumer marketing, retailer assortments. Welspotted: Style & Trends Dotted SOUNDS MONTHLY 02a WELCOME A NOTE FROM THE NOTED BELIPUN SHOTS EVERYBODY'S SIDEWAYS RETAIL British brand for big boobs drs WHAT'S OUT THERE IN THE WORLD com welspunindia.com PATTERN High-com LUXURY Chic SOCIAL MEDIA AMPERSAND House Dem in white APPAR Hiroshi Fujiwar LWB Give words Industry Research npd IIII Real-time "chat" on a social media-like platform, with results segmented across various demographics the welspun brain trust Market Analysis • Assortment Analysis Customer Reviews 28#29Innovation - Our strong suite 35 Patented Technologies Key Innovations Filed globally WIL: 31 Advance Textiles: 2 Flooring: 2 HYGRO COTTON WINNER 2nd time in a row CLARIVATE SOUTH AND SOUTH EAST ASIA INNOVATION AWARD 2021 HYGROCOTTON Patented spinning technology makes towel softer loftier and sheet temperature regulating WEL-TRAK 2.0 BLOCKCHAIN BY WELSPUN Thought leader Collaboration With Tamper-proof Blockchain platform for state-of-the-art transparency for All Fibers & All Product Categories Softer 99 Fluffier Temperature after wash regulating Building Trust Digital Verification Enhancing Transparency Welspun India has been recently recognized as the most 'Influential Innovators' at the Clarivate South and South East Asia Innovation Award 2021 Global Collaborations with Top Universities, Technology Partners and Industry Associations Other Innovations GOOD REST ORGANIC ♦ Wrinkle resist properties папо core agenc NANOCORE ◆ Prevent Allergy & Asthma ◆ Chemical-free welspunindia.com drylon DRYLON ◆ Ultra soft ◆ Dries super fast CHARCOAL ◆ Odor-control ◆ Hygienic & Detoxifying 29#30Digitalization - Digital Transformation at Welspun BUY Supplier Manufacturing E-Sourcing E-Procure to Pay Industry 4.0 Computer vision based QC Real time performance monitoring Energy Mgmt Systems ◆ IOT/ Connected machines Robots, Sewbots, Cobots Product Management Collaborative E-PLM Digitization of Product Development Master Data Management Collaborative 3D Design Platform for customers B2C Product Info Management Platform Supply Chain Sales & Marketing E-Documentation (Bolero Platform) Freight Tiger (Cloud based) Planning Platform enabled by ML Algos Digital Customer Engagement Virtual Showroom, shop floor walkthrough & Inspection Global E-Commerce Program via Marketplaces & brand.com portals welspunindia.com Al enabled Projects Advanced Analytics, Power BI based Dashboarding tools, Robotic Process Automation 30#31Digitally Engaging with our customers Virtual Showroom & Design Microsite IT'S TIME TO DISCOVER CONNECTING VIRTUALLY WELSPUN SPRING SUMMER 21/22 BEDDING BATH RUGS welspunindia.com Virtual Shop floor walkthrough Virtual Quality Inspections Customer Feedback Shwetank Sa... Subrata Paul-s... Switch Camera VIRTUAL INSPECTION Walmart Save money. Live better. KE 360° REVOLVING CAMERA REMOTE CONTROLLED ZOOM FEATURES | SNAPSHOT FEATURE Olvish Carme 66 Audio-Video quality was so good that I could feel myself sitting in cart and visiting the plants. Very good synergy among team members and could see everyone striving for excellence. Stays Video F Chal Reactions 31#32Welspun ESG way: Encompassing all stakeholders Welocity Accelerating ESG Welspun is going through a major transformation where we are embedding sustainability and circularity in every realm of our value chain. We are striving to be the absolute benchmark and global leader in the use of ESG framework and compliance to sustainable practices. Our social and philanthropic initiatives are run through Welspun Foundation and are centered around 3E's - Environment & Health, Education, Empowerment. We have built a roadmap on Sustainability for WIL that enlists our goals under Sustainability till 2030. ESG WORLD Independent review of Welspun India's performance across 170+ ESG (Environmental, Social & Governance) parameters Click here for more details welspunindia.com Environmental Implemented ISO 14001 Environmental Management Systems at both manufacturing sites Flagship facility is fresh water positive: 30 mn liters per day sewage treatment plant enables use of treated sewage instead of Freshwater in production operations Replaced coal with Biomass for power generation and avoided over 12,000 tons of GHG emissions ◆ Recognized with the prestigious National Water Award 2020 (1st prize in "Best Industry" category Water Story Social Engaged with Cotton Farmers to train & enable them grow sustainable forms of Cotton (Better Cotton Initiative and Organic Cotton) in an initiative spread over 350 villages, impacting 15,314 farmers. ◆ Focus on inclusion and gender diversity large segment of women workers in Cut-&-Sew operations ♦ “SPUN” initiative: empowering women in rural communities earn livelihood by making handicraft goods from Factory textile scrap ◆ "SPUN" by Welspun recognized as one of the top 100 corporate- ready social enterprises, globally by World Economic Forum Sustainable Cotton Story Governance ◆ Board Committee on ESG ♦ Executive remuneration linked to ESG goals ♦ Initiated a broad Enterprise Risk Management framework ♦ ACCESS module in SAP to enable access of relevant data to authorized users ◆ Launched ESG Compass - an integrated ESG digital platform with automated data dashboards covering over 90 indicators and extending to all sites, locations and subsidiaries in India ◆ Robust Ethics framework in place Compliance management tool in place ♦ Innovation & intellectual property oriented culture reflected in 35 patents filled globally Governance Framework 32#33Sustainability Initiatives - Growing business responsibly Rated "Low Risk" on ESG factors by one of the top ESG rating agency Sustainalytics DJSI ratings SUSTAINALYTICS ESG Among Top 100 Sustainable companies in India by ET-Futurescape MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM < Crisil ratings CRISIL An S&P Global Company ESG 202 Score improved to 14.8 from 17.9 (Mar'21) Score improved from 8 to 48 (Nov'21) Score 63 Strong (May'22) Journey Till Date (Q1FY23)- Environmental Impact 1,50,000+ acres 702.3million 36,697 GJ Energy Landbank of sustainable cotton farming Liters of recycled water used in process this quarter Saved through energy conservation this quarter Journey Till Date - Social Impact Welshiksha Students reached ~62K FY22-23 Target: ~83K welspunindia.com 59% Of cotton used from sustainable sources this quarter WELSPUN SUPER SPORT WOMEN 515 tons Recycled cotton reused in process this quarter Welspun Super Sport Women ♦ 28 athletes supported ◆ Medals: 53 WelNetrotva ◆ Livelihood Impact - Total benefited 1500 Health Impact - ◆ Total beneficiaries ~45K WELSURAKSHA| ◆ To reduce road accidents on WEL constructed road ◆ Beneficiaries 600 ◆ Target ~60K 33#34Sustainability - Progress against Targets Aspects Carbon Neutral (measured as % RE) 100% Sustainable Cotton Q1FY 23 Goal 2025 Goal 2030 WIP 20% RE 100% RE 59% 50% 100% 99.94 Fresh Water Positive in Production operations 14.45 KL/MT 5 KL/MT O KL/MT Zero hazardous waste to Landfill (ETP chemical sludge) 8.75 MT 0 MT 0 MT Impacting 1 million lives in CSV Farmers in Welspun sustainable farming project (cumulative) welspunindia.com 1,07,988 5,00,000 1,000,000 16,000 20,000 50,000 34#35Our ESG journey and envisaged outcomes What are we doing? Comparison of ESG-related systems and processes across peer set Identifying, refining, and assessing numerous potential environmental, social and governance issues that could affect the business and stakeholders Identification of current gaps and/or improvement areas based on maturity assessment and materiality analysis Formulation of a strategic roadmap outlining key actions to be undertaken in short, medium and long term Public reporting and disclosures of ESG performance Maturity Assessment -> Materiality Analysis -> Gap Analysis Roadmap Development -> Communications and Reporting Key considerations Global trends Peer analysis Global reporting frameworks ESG ratings Expected outcomes Progressive Vision and Strategy/Commitment welspunindia.com Building Trust with Stakeholders Competitive Advantage & Market Differentiation Improved Processes and Systems External recognition 35#36Robust Financial Performance ↑#37Profit & Loss Summary Particulars Total Income Growth % EBITDA EBITDA Margin Depreciation FY18 FY19 FY20 FY21 61,318 66,084 68,362 74,080 (Million) FY22 93,773 -8.8% 7.8% 3.4% 8.4% 26.6% 12,046 11,467 13,098 14,198 14,246 19.6% 17.4% 19.2% 19.2% 15.2% 5,042 4,358 4,811 4,536 4,205 Finance cost 1,408 1,593 1,777 1,975 1,313 PBT (Before exceptional) 5,597 5,516 6,510 7,686 8,728 Exceptional Items (2,647) 434 PAT (After Minority Interest) 3,850 2,098 5,074 5,397 6,012 Cash Profit* 9,413 8,977 9,702 10,197 10,703 EPS () 3.83 2.09 5.05 5.37 6.06 Note: 1. *Cash Profit = PBDT (before exceptionals) less Current Tax 2. Prior period figures are restated wherever necessary welspunindia.com 37#38Balance Sheet Summary (Million) Particulars Net Worth 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 26,057 27,793 29,721 36,447 39,717 Short Term Loans 12,580 14,080 17,717 17,452 19,742 Long Term Loans 20,228 19,024 16,704 10,962 12,142 of which Net Flooring Debt 2,797 6,526 6,959 8,300 Gross Debt 32,807 33,104 34,421 28,414 31,884 Cash & Cash Equiv. 2,538 2,821 4,803 5,087 9,595 Net Debt 30,269 30,283 29,618 23,327 22,289 Net Debt excluding Flooring debt 30,269 27,486 23,092 16,368 13,989 Capital Employed* 62,962 65,456 68,825 71,303 79,053 Net Fixed Assets (incl CWIP)^ 33,641 36,154 38,105 38,042 39,881 Net Current Assets Total Assets 23,734 22,210 21,828 24,534 24,839 72,249 77,423 83,103 86,778 94,368 Net Debt of Core business reduced by 49.1% in last 4 Years (FY 19 to FY22) Note: *Capital Employed = Net worth + Gross Debt + Other long term liabilities | ^Net current assets does not include Cash & cash equivalents welspunindia.com 38#39Ratios Summary FY18 FY19 FY20 FY21 FY22 Net Debt/Equity 1.16 1.09 1.00 0.64 0.56 Solvency ratios Net Debt/EBITDA 2.51 2.64 2.26 1.64 1.56 EBIT/Interest 4.98 4.46 4.66 4.89 7.65 Current ratio 1.42 1.25 1.19 1.33 1.37 Fixed asset turnover 1.80 1.81 1.77 1.93 2.33 Total asset turnover 0.84 0.84 0.81 0.85 0.99 Operational ratios Inventory days 79 75 83 88 78 Debtor days 56 60 59 59 39 Payable days Cash conversion cycle ROE Return ratios ROCE (Pre-tax) 39 39 49 54 36 96 95 93 93 80 15.4% 15.2% 16.1% 16.3% 15.8% 11.3% 10.9% 12.3% 13.8% 13.4% Improving Key Ratios, Continuous Reduction in Net Debt Note: ROCE = EBIT / Average Capital Employed & ROE = Net Profit / Average Net worth Total asset turnover = Sales/ (Fixed assets + Gross current assets) " Return Ratios figures adjusted for Exceptional item welspunindia.com 39#40welspunindia.com FCF 907 FY18 786 773 FY19 787 Focus on Shareholder Value Creation (Million) Dividend / Buyback cash outflow 2,240 FY20 1,574 6,290 FY21* 2,650 3,651 FY22 Note: • *Includes Buyback, Buyback tax and Dividend 148 40 40 18 Continuous payout thru dividend / buyback#41Prudent Capital Allocation Strategy FOLLOW YOUR DREAMS Core Philosophy in Capital Allocation Decisions Investment toward profitability-margin assertive product categories Consistent track record of distribution through Dividend / Buyback welspunindia.com CAPEX Areas of Investment Dividend / Buyback Net Debt ◆ Calibrated as per the cash flows available ◆ Strengthening Brands ◆ New Trade Channels ◆ New Geographies ◆ Distribution through Dividend/Buyback ◆ Focused on Net Debt reduction ◆ Net Debt excluding flooring debt reduced to 13,989 mn as on 31st March 22 from 16,368 mn as on 31st March 21 41#42Enhancing capacity; catering to growing demand Rise of homebody economy & focus on hygiene driving increased consumption of Home textile products Enhancing our capacity through de-bottlenecking & rebalancing facilities to cater to this demand Capital light expansion in the areas of processing, cut & sew etc. Towels 80,000 MT Capacity in FY21 Bed Linen 85,400MT Capacity in FY22 90 Mn. Meters 90 Mn. Meters Capacity in FY21 Rugs & Carpets 10 Mn. Sq. Meters Capacity in FY21 Capacity in FY22 12 Mn. Sq. Meters Capacity in FY22 90,000 MT Starting Q2FY23 108 Mn. Meters Starting Q1FY23 18 Mn. Sq. Meters Starting Q1FY24 HOME TEXTILE: Capacity expansion at Vapi and Anjar operationalized in H11FY23 ADVANCED TEXTILE: Spunlace expansion commercialized in Q4FY22 FLOORING: The planned capacity installation to be completed by Q2FY23 welspunindia.com 42 42#43Share Holding Summary Shareholding Pattern (Mar 2022) welspunindia.com 70.4% Promoter Group 6.9% FPIS Top Institutional Shareholders LIC of India L&T Mutual Fund 1.7% Mutual Funds/AIF Aditya Birla Sunlife MF 3.7% Insurance Co's Tata Mutual Fund 17.3% Public 43#44Investment Rationale - What makes it an interesting play? We are looking for a new fresh way. This means we strategy we are also revolution is a process rofound noons a These basic yet profou We are daily trials as s activist uggle itself m some way for our activi we've been able to ↑#45Investment Rationale Strengthening Balance sheet with low leverage and allocation of capital to high ROCE businesses A strong focus on innovation with 35 patents and collaborations with technology partners and industry associations Global leader in home textiles ◆ Strong distribution reach in over 50 countries ◆ Vertically integrated manufacturing facilities ♦ Industry leading EBITDA margins Global partnership with retailers ESG initiatives are the cornerstone of every activity the Company undertakes Ecommerce Multipronged strategy to drive growth WELSPUN L Focus on 'Direct to Customers' through own global/ domestic brands & license portfolio Flooring Solutions & Advanced Textiles driving new areas of growth welspunindia.com 45#46Disclaimer The information contained in this presentation is provided by Welspun India Limited (the "Company"), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change without notice, its accuracy, fairness or completeness is not guaranteed and has not been independently verified and no express or implied warranty is made thereto. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. Neither the Company nor any of its directors assume any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. Neither the Company nor any of its directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The statements contained in this document speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This document is for informational purposes and does not constitute or form part of a prospectus, a statement in lieu of a prospectus, an offering circular, offering memorandum, an advertisement, and should not be construed as an offer to sell or issue or the solicitation of an offer or an offer document to buy or acquire or sell securities of the Company or any of its subsidiaries or affiliates under the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, both as amended, or any applicable law in India or as an inducement to enter into investment activity. No part of this document should be considered as a recommendation that any investor should subscribe to or purchase securities of the Company or any of its subsidiaries or affiliates and should not form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not financial, legal, tax, investment or other product advice. This presentation contains statements of future expectations and other forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results, performances or events may differ from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, or that assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. Any reference herein to "the Company" shall mean Welspun India Limited, together with its consolidated subsidiaries. welspunindia.com 46#47Let's connect For further details please contact Mr. Sanjay Gupta President (Finance) & CFO Welspun India Limited [email protected] Mr. Abhinandan Singh Group Head - Investor Relations [email protected] welspunindia.com TheWelspunGroup Ο welspungroup WELSPUN