Investor Presentaiton

Economic growth and reforms agenda on track SIEMENS >7.5% GDP growth expected aided by a consumption boost. Demonetization impact could bring GDP down to 7% temporarily ◉ ☐ GST clearance is a positive step; proposed four slabs could create implementation complexities and classification disputes; however central and state government consensus positive Demonetization of currency notes (INR 500/1000) expected to have a positive economic impact in the medium-long term by choking off the parallel economy Business optimism indices on new orders consistently improving Nikkei India Manufacturing PMI rose to a 22-month peak of 54.4 in Oct 2016 Lead economic indicators point to a possible recovery new corporate borrowings increased as compared to the previous year; corporate investments (Jan-Sep'16) are higher than the full year 2015 Consumer price inflation continues to drop; expected to soften further GST not expected to stoke inflation as approx. 50% of CPI items out of tax net Capacity utilisation in the last few quarters has been 72-74% compared to 78-79% a few years ago; manufactured goods inflation is well below average Normal monsoon will positively impact growth in rest of the fiscal Manufacturing PMI Index Growth 54.4 50 → 50.3 no change on previous month 52.4 52.1 49.1 50.7 Contraction OND J F M A M J JASO • October data provides positive news for India's economy, as manufacturing output and new orders expanded at the fastest rates in 46 and 22 months, respectively," - IHS Markit GST Goods & Services Tax; PMI Purchasing Managers Index; CPI Consumer Price Index Page 4 FY 2016, Analyst Presentation

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