Salzer Electronics Limited EEIZEI“

Result Update Presentation

Q4 & FY18

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rnyrtatran ta parcnase orsubscn'befor any secarrtres, anasnau notform tne pasrs ar pe re/rea an rn cannectran wrtn any cantract ar prnarna carnrnrtrnent wnat sa eyer. No

afferrna ofsecun'n'es of tne Company Wm pe rnaae except by rneans ofa statatary afferrna aacarnent cantarnrna aetar/ea rnfarrnatran apaat tne Company.

rnrs presentatran nas peen preparea py tne Company pasea an rnfarrnatran ana aata wnrcn tne Company cansraers re/rap/e, pat tne Company makes na representatran ar

warranty, express ar rrnp/rea, wnatsaeyer, ana na re/rance snaH pe p/acea an, tne tratn, accaracy, carnp/eteness, farrness ana reasanap/eness of tne cantents of tnrs

presentatran. rnrs presentatran rnay not be an rnc/asrye ana rnay nat cantarn an aftne rnfarrnatran tnat yaa rnay cansraer rnaterraL Any /rapr/rty rn respect of tne cantents

ofi arany arnrssranfrarn, tnrs presentatran rs express/y exc/uded.

Cenarn matters arscassea rn tnrs Presentatran rnay cantarn staternents regararng tne Carnpany’s market appananrty ana pasrness praspects tnat are rnaryraaa/ly ana

caHectrye/y forwardr/ookr'ng staternents. sacn forwardr/ookr'ng staternents are not guarantees offumre performance ana are subject ta known ana unknown risks,

ancertarntres ana assarnptrans tnat are arfirca/t ta prearct. rnese risks ana ancertarntres rnc/aae, pat are not Hmr'ted ta, tne performance aftne [ndr'an ecanarny ana of tne

ecanarnres of yarraas rnternatrana/ markets, tne performance of tne rnaastry rn mar-a ana war/drwr'de, carnpetrtran, tne carnpanys apr/rty ta successful/y rrnp/ernent rts

strategy tne Carnpanys future /eye/s of arawtn ana expansran, tecnna/aarca/ rrnp/ernentatran, cnanaes ana aayancernents, cnanaes rn reyenae, rncarne ar casn flows, tne

Carnpanys market preferences ana rts exposure ta market risks, as well as atner risks. rne Carnpanys actaa/ resa/ts, /eye/s of actryrty, performance aracnreyernents caa/a

ayfer rnaten-aHy ana adverse/yfrom resa/ts expressed rn ar rrnp/rea py tnrs presentatran. rne Company assarnes na ap/raatran ta apaate any forwardr/ookr'ng rnfarrnatran

cantarnea rn tnrs presentatran. Anyforwardr/ookr'ng staternents ana prajectrans rnaae py tnrra pam'es rnc/aaea rn tnrs presentatran are not aaaptea py tne Company ana

tne Company rs nat respansrp/efarsacn tnrra partystaternents andpmjecn'ons.

Table of Contents EEIZEI“

«5 Q4 & FY18 Financial Highlights

@ E Company Overview

EE Business Overview

@E Way Ahead mm-

5Q4 & FY18 Financial Highlights

Ealzar

Commenting on the results, Mr. D Rajesh Kumar, Joint Managing Director, said :

”I am happy to share that this quarter once again, we have demonstrated good growth in

our revenues. This growth was mainly driven by demand in our switchgear business

segment and also from products like wire harness and three phase dry type transformers.The increase in exports to USA and Europe has also been another factor contributing to the

increased revenues. Our EBIDTA for the quarter, has also grown and we have shown

significant improvement in margins of more than 285 basis points year on year. I believe

this is an indication of our efi‘orts over the past three quarters, on increasing our margins

and improving our operating efficiencies.

We expect this margin to sustain and our endeavour continues to remain on profitable

growth and margin improvement. We are also making inroads into new industry like solar,

elevators and locomotives for our products like three phase transformers and wire harness.

We continue to focus on adding new, niche and high margin products, enter new

geographies and ofi‘er total and customised electrical solutions to our existing and new

customers. To aid to this we are constantly on the lookout for any new opportunities fortechnical associations to strengthen the base for our product offerings.”

Key Financial Highlights- Q4 FY18* EEIZEI“

13.5%1 45.8% 1 286bpsT 13.3% 1i Revenue Rs 126.8 crore EBITDA Rs 16.4 crore EBITDA Margin 12.9% PAT Rs 4.9 crore

0 Revenue increase mainly driven by Industrial Switchgear business

0 EBIDTA growth of 46% is due to better realization in various switchgear products

0 EBIDTA Margin improved by over 280 basis points to 12.94 %

*Numbers 115 per Ind A5 guidelines

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Rs. in more L14 rv13 i L14 rv17 v-o-v% L13 rv13

Total Income from Opemlions 126.8 : 144.1 110.7

Excise Duty I 0.0 : 32.4 .

Net Revenue 125.3 : 111.7 13.5% 110.7

Raw Materials 91.6 : 76.4 30.9

Employee Cost 5.4 : 5.1 4.6

Other Expenses 13.3 i 18.9 11.7

Total Expenditure 110.3 : 100.4 37.2

EBITDA 15.4 i 11.2 45.3% 13.5

EBIDTA margin (%) 12.94% E 10.03% 235 bps 12.13%

Otherlnoome .03 i 1.9 0.6

Depreciation 2.9 i 2.3 2.6

Interest / Finance Cost 3.9 i 4.1 3.6

Profit Before Tax 3.7 i 5.7 23.7% 7.9

Tax 3.9 i 2.5 2.6

Profit After Tax 4.3 l 4.3 13.3% 5.3

PAT Margin (%) 3.33% i 3.33% 4.73%

7’Numbers asper was guiueimes ~________-r

Q4 FY18 Revenue Breakup— Business Vertica|s* EEIZEF‘

Segment,

5.9%

Wire a.Indus na

Industrial Wire a.Ca ble, .

5n 8%s hgear cable,

swn‘hgea'-

4n 3%,43.9% 5n 3%

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*Numbers as per my As guidelines

Q4 FY18 Revenue Breakup Geog ap cal* EEIZEF

Middle

East, 1.5%

Middle

Asia [Emu-East, 1.4%Asia [Exclu.

lndiaL 5a

u.s. 2.9%

Europe,

4.5% Europe,

4.2%

83.4%

*Numbers as per my 45 gumermes

Key Financial Highlights — FY18* EEIZEI“

15.0%1 20.7% 1 56bps 1 15.4% 1i Revenue Rs 442.8 crore EBITDA Rs 53.3 crore EBITDA Margin 12.0% PAT Rs 20.0 crore

0 Good traction in Three Phase Transformers-

leading to significant contribution from this product

0 100% growth in wire harness business

0 Growth driven by uptick in Industrial Switchgear and higher demand in Wire & Cable Segments

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*Numbers 115 per Ind A5 guidelines

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Key Financial Highlights — FY18*

Revenue (Rs. Cr)

442.8

351.1385.0

283.3

2015 2016 2017 2018

Net Profit (Rs. Cr)

25 '

4.7% 5%

5%

20 -

5%

5%

15 '

4%

10 _

4%

4%

5 _ 4%

4%

o 4%

2015

*Numbers as per Ind AS guidelines

2016 2017 2018

EBITDA (Rs. Cr) /Margins (%)

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60

50

40

30

20

10

12.5% 13%

13%

12%

12%

11%

11%

10%

10%

9%

9%

0 8%

2015 2015 2017 2018

Networth (Rs. Cr)

272.8

232.5

191.3

107.0

2015 2015 2017 2018 11

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Rs. in Crore ! Fle ‘i FV17 V-o-V%

Total Income from Operations : 453.3 E 443.7

Excise Duty i 10.6 i 58.7

Net Revenue i 442.3 E 335.0 15.0%

Raw Material Expenses : 323.5 E 272.0

Employee Expenses : 19.9 i 18.7

Other Expenses : 46.2 : 50.1

Total Expenditure ! 333.5 : 340.3

EBITDA : 53.3 : 44.1 20.7%

EBITDA Margin ! 12.03% E 11.47% 55 bps

Other Income ! 3.1 l 5.4

Depreciation E 10.5 i 8.9

interest/ Einance Cost E 14.9 i 14.6

PBT i 30.3 E 25.1 13.5%

Tax E 10.9 E 8.8

PAT E 20.0 i 17.3 15.4%

PAT Margin i 4.52% I: 4.50%12

*Numbers as per my As guiueimes