Grindwell Norton Limited

7.2%

Near term outlook is volatile • RBI issued revised projections of real GDP growth for 2022-23 at 7.2%, owing to anticipated impact of escalating geopolitical tensions • Headwinds from higher fuel an

8.2%

l since July 2021 ECONOMIC UPDATE ➢ IMF revised India real GDP growth projections for FY 22-23 to 8.2% from 9% citing adverse impact of Russia- Ukraine war; Global growth outlook for 2022 cut to 3.6% f

9%

ly 2021 ECONOMIC UPDATE ➢ IMF revised India real GDP growth projections for FY 22-23 to 8.2% from 9% citing adverse impact of Russia- Ukraine war; Global growth outlook for 2022 cut to 3.6% from 4.4%

3.6%

o 8.2% from 9% citing adverse impact of Russia- Ukraine war; Global growth outlook for 2022 cut to 3.6% from 4.4%. ➢ Nomura India BRI at 125.4 in Apr’22; slightly lower than March ➢ Manufacturing PMI r

4.4%

m 9% citing adverse impact of Russia- Ukraine war; Global growth outlook for 2022 cut to 3.6% from 4.4%. ➢ Nomura India BRI at 125.4 in Apr’22; slightly lower than March ➢ Manufacturing PMI rose to 54.

14.5%

marking 10th consecutive month of expansion ➢ Services PMI rose to 53.6 in Mar’22. ➢ WPI rose to 14.5% in Mar’22 and CPI was higher at 7.79% in Apr’22; RBI increased the repo rate to 4.4% ➢ The Govt. c

7.79%

ansion ➢ Services PMI rose to 53.6 in Mar’22. ➢ WPI rose to 14.5% in Mar’22 and CPI was higher at 7.79% in Apr’22; RBI increased the repo rate to 4.4% ➢ The Govt. collected Rs.1.7 trillion GST in Apr 20

Rs.1.7

2 and CPI was higher at 7.79% in Apr’22; RBI increased the repo rate to 4.4% ➢ The Govt. collected Rs.1.7 trillion GST in Apr 2022, FY22 GST collection increased by 19% over FY21 ➢ Index of industrial prod

19%

te to 4.4% ➢ The Govt. collected Rs.1.7 trillion GST in Apr 2022, FY22 GST collection increased by 19% over FY21 ➢ Index of industrial production (IIP), rose by 1.7% in Feb’22. ➢ Passenger vehicle sal

1.7%

22, FY22 GST collection increased by 19% over FY21 ➢ Index of industrial production (IIP), rose by 1.7% in Feb’22. ➢ Passenger vehicle sales rose by ~21% in Mar ‘22 on Q-o-Q basis due to good demand des

21%

➢ Index of industrial production (IIP), rose by 1.7% in Feb’22. ➢ Passenger vehicle sales rose by ~21% in Mar ‘22 on Q-o-Q basis due to good demand despite supply chain constraints. ➢ Rupee depreciati

3.1%

owth (%) trend… MACRO ECONOMIC ENVIRONMENT Weekly Narrow Recovery Index continued to improve with ~3.1%MoM jump in April MTD. The economic activity is now ~10- 12% above pre-covid levels Broad Recovery

“Crores) 12 GNO: REVENUE FROM OPERATIONS & EXPORTS (NET OF EXCISE UP TO FY 2017-18) CAGR: 2009-10 to 2021-22 GNO Rev.”

“Crores) CAGR 2009-10 to 2021-22: GDP : 5.6% Abrasives : 9.4% C&P, Tech & Digital Services : 13.0% 14 202 296 333437 567 659 877 386 610 633745 887 920 1,136 - 500 1,000 1,50009/1011/1213/1415/1617/1819/2021/22C&P, Tech & DigitalServicesAbrasives KEY FINANCIAL INDICATORS – OPERATING MARGIN (Rs.”

“2009-10 to 2020-21 : 12.4% CAGR 2009-10 to 2021-22: - Abr.”

GNO Op. Profit CAGR

2

Index

1

GNO PAT CAGR

1

ACQUISITION

1

Index

Broad Recovery : Feb 2020 = 100 GNO Sales : Avg. 2019 = 100 127 127 124 109 112 99 102 108 90 99 101 138 110 93 91 85 61 57 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 8 GNO-Key Indicators Key Indicators and Trends and Trends 9 KEY FINANCIAL INDICATORS – REVENUE FROM OPERATION (Rs. Crores) Key Financials(As Published)FY 19-20FY 20-21FY 21-22Growth 21-22 vs 20-21Revenue from Operations15801638201322.9%Operating Profit (PBIT)24732140024.7%Profit Before Tax24331739624.8%Net Profit for the period18423829524.1%Revenue from Operations15801638201322.9%OP Margin (on Net Revenue from Operations)15.6%19.6%19.9%Return on Capital Employed (ROCE)20.6%23.3%25.3%Business OP Margin14.1%17.5%18.7%Bussiness Assets Turnover Ratio2.542.782.61Return on Business Assets (ROI on business OP)35.9%48.7%48.6% REVENUE FROM OPERATIONS BRIDGE Apr 20 - Mar 21 Rs.1638 Increase Rs.375 crores (22.9%) Apr 21 – Mar 22 Rs.2013 (Rs. Crores) 11 REVENUE FROM OPERATION - BRIDGE Apr 20 - Mar 21 Rs.1

GNO Op. Profit CAGR

2009-10 to 2020-21 : 12.4% CAGR 2009-10 to 2021-22: - Abr. : 8.2% C&P, Tech & Digital Services : 16.9% (Rs. Crores) In FY2021-22, GNO PBIT increased by 24.6%; Abrasives by 38.9% and C&P, Tech & Digital Services by 16.9% Source: Quarterly Page -Segment 18 619778112125107156375249701041402449814912618222924740005010015020025030035040045009/1011/1213/1416/1717/1819/2021/22AbrasivesC&P, Tech and DigitalServices GNO PROFITABILITY – ROI & OP MARGIN (%) ROI OP Margin Source: Annual Report 19 37.734.223.528.237.335.948.618.116.713.113.114.514.118.610121416182022152025303540455009/1011/1213/1415/1617/1819/2021/22ROI%OP Margin% GNO PROFITS – OPERATING PROFIT(PBIT) & PAT

GNO PAT CAGR

2009-10 to 2021-22: 13.6% (Rs. Crores) 2021-22 : PBIT increase by : 24.7%; PAT growth: 24.1% Source: Annual Report 20 98149125164229247400641048410615118429509/1011/1213/1415/16*17/1819/2021/22PBITPAT GNO CAPITAL EXPENDITURE TREND - CAPEX Capex (Rs. Crores) 126 67 39 50 48 2017-18 2018-19 2019-20 2020-21 2021-22 Capex = Purchased of property, plant & equipment and intangible assets Source: Annual Report 21 60% 50% 40% 30% 20% GNO – DIVIDEND PER SHARE 12.00 9.50 7.50 6.00 5.00 4.00 10% 3.00 3.00 3.25 3.25 3.25 3.25 3.25 Dividend Per Share (Rs.)** 0% 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20* 20/21 21/22 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 **Note: Dividend per share adjusted for bonus/splits Source: Annual Report 22 23 Customer connect Digital n Analytics Operational excellence • Digital Lead Generation • Pricing / Margin Management • Micro-market Mapping • Salesforce Automation & Nudging • Analytics on secondary sales • Campaign efficacy • SCM - Autono

ACQUISITION

PRS PERMACEL ➢ Part of J&J until 1999; acquired by PRS group ➢ Active in the Pressure Sensitive Adhesive Tape (PSAT); forward integration to printing of tapes/labels ➢ Major share of Aesthetic decals business with major 2-wheeler manufactures ➢ Manufacturing facility at Ambernath (near Mumbai) ➢ FY22 Est Results: Sales of 1475 MINR ➢ Proposal to acquire 100% of Equity for a Net Purchase Consideration of 1220 MINR ➢ SG/GNO has no manufacturing footprint for PSAT range in India ➢ Great platform for to grow in high growth profitable markets – EV, Railways, Aerospace, Defense and Steel PSAT India Zoom – 11000 MINR Leveraging Permacel • • • • • Huge addressable market. Large number of RDSO approvals Established foot print in Aerospace & Defense Presence in Auto - to leverage SG range and explore wire harness. Backward integration • Opportunity to grow in rest of Asia. • Synergies with SG/GNO operations – Purchasing, Product Development, Innovation, Digitalization 500 500 2500 2000 1250 750