SCHAEFFLERNSE28 July 2022

Schaeffler India Limited has informed the Exchange about Investor Presentation

Schaeffler India Limited

SCHAEFFLER

Schaeffler India Limited ■ Pune ■ Maharashtra

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Company Code: 505790

National Stock Exchange of India Limited Exchange Plaza, C - 1, Block G, Bandra-Kurla Complex, Bandra (E), Mumbai-400051 Company Code: SCHAEFFLER

Sub: Investor Presentation

Dear Sirs,

28/07/2022

Phone: +912068198464

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith Investor Presentation on Financial Results of the Company for the quarter and half year ended June 30, 2022.

Kindly take the same on your record.

Thanking you.

Yours faithfully,

For Schaeffler India Limited

Ashish Tiwari, VP - Legal & Company Secretary

Encl.: As above

Schaeffler India Limited

Registered and Corporate Office: 15th Floor, (ASTP) Amar SadanandTech Park, Baner, Pune, Maharashtra, India -411045 Tel: +91-20-68198400

| Fax: +91-20-68198405

CIN: L29130PN1962PLC204515, www.schaeffler.co.in, info.in@schaeffler.com,

Picture to be updated

Schaeffler India Limited Investor Presentation – Q2 and 6M 2022

July 27, 2022

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q2 and 6M 2022

Financial Highlights Q2 and 6M 2022

ESG at Schaeffler India

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

PUBLIC

1 Economy & Industry 2 Economy & Market

Economy | Rising inflation slows growth, outlook remains positive

2020

2021

YTD CY2022 Growth

GDP 1) 3)

20.1

IIP 1) 3)

44.4

5.9%

• For CY2021, GDP is expected to grow by

8.3%

8.4

5.4

4.1

Q2 Prov

Q3 Prov

Q4 Prov

Q1 Prov

2.5

Q1 Rev Estimates

6.0

9.5

2.1

12.9

1.8

Q1 Prov

Q2 Prov Apr & May

2021

2022

2021

2022

Automotive Production 2) 4)

322

32.3

16.0

14.3%

35.7

CPI 1)

4.9

5.6

5.1

5.0

6.8%

7.3

6.3

• Moderate growth in industrial sector; YTD CY 2022 growth of 5.9% in mining, 5.4% in manufacturing and 9.3% in electricity

• YTD CY 2022 Automotive production

registered a growth of 14.3%

• High CPI in June’22 due to increase in

consumer food price index by 7.7% and increased fuel prices by 10.4%

Note : •

Data is reinstated every quarter as per final reports released by authorities. GDP, IIP, and Automotive Production are YoY growth rates, whereas CPI is quarterly inflation rate. 6.8% is the average CPI for YTD 2022 Contribution of manufacturing, mining, & electricity in IIP stands at 78%, 14%, & 8% respectively Automotive Production includes PVs, CVs, & Tractors with production share of 68%, 17%, & 15% respectively

•

2021

-9.2

-1.6

2022

Q2 Prov

2021

2022

Source of data : 1) Ministry of Statistics & Programme Implementation 2) SIAM : Society of Indian Automobile Manufacturers 3) GDP - Gross Domestic Production, IIP - Index of Industrial Production, CPI - Consumer Price Index 4) Automotive Production includes PVs, CVs, & Tractors

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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1 Economy & Industry 1 Economy & Industry

Core sector performance | Moderate growth

2020

2021

YTD CY2022 Growth

Cement Production (mn T)

11.6%

Steel Production (mn T)

6.1%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Coal Production (mn T)

67 68

11.2%

Electricity Generation (bn KWH)

9.1%

140 142 144

121 117

120 112

132 127 118 124

135 137

123 123

118

108

Key comments

Overall core sector index performance for CY22 is 8.2% compared to the previous year

Sector weightage within eight core sectors

Sector

% weight

Cement

Steel

Coal

Electricity

5.4%

17.9%

10.3%

19.9%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source of core sectors data: Office of Economic Advisor

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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1 Economy & Industry 1 Economy & Industry

Automotive sector performance | Seeing recovery, PVs picking up

2020

2021

YTD CY2022 Growth

Two and three wheelers (mn Units) 1)

1.7%

Passenger Vehicles (Th Units) 2)

15.1%

1.6

1.9

1.5

2.0

1.6

1.8

1.7

1.9

2.0

1.8

1.7

1.4

351

353

373

349

338

367

374

350

331

320

364

292

291

296

310

224

0.7

144

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Commercial Vehicles (Th Units)2)

51.7%

Agriculture Tractors (Th Units) 3)

-12.6%

108

104

105

100

104

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Low growth in two wheelers due to sluggish rural demand, higher prices and deferred purchases

• For CY 2022 - PVs picking up, semi- conductor shortage hampers production ramp-ups

• YTD YoY growth in CVs due to strong infrastructure push, fleet upgrades and low base effect

• YTD YoY growth for tractors seeing moderation due to cyclical impact and demand crunch in the rural market

Source of data : 1) SIAM : Society of Indian Automobile Manufacturers 2) TMA : Tractor Manufacturers Association 3) TW – Two wheelers, CV – Commercial Vehicles, PV – Passenger Vehicles,

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q2 and 6M 2022

Financial Highlights Q2 and 6M 2022

ESG at Schaeffler India

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

PUBLIC

2 Business Highlights Q2 and 6M 2022 2 Q4 / 12M 2021 Performance

Q2 2022 | Continuing the positive trajectory

Key Messages

Strong sales development across businesses due to our diversified portfolio

Continued wins in both Automotive and Industrial businesses

Margins remain consistent, significant capex outlay

Executed Business Transfer Agreement with CATENSYS India Private Limited for the sale of chain drive business of the Company

Customer recognitions for Quality and Agility

Sustainability – at the core of what we do. Climate Action Day and Schaeffler Innovator Fellowship Program

Headwinds due to input cost pressure and inflation remain

1) EBIT (before exceptional items)

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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Sales growth 41.8% vs Q2’21 11.6% vs Q1’22 17,488 mn INR

PAT margin 12.9% Q2’22 10.4% Q2’21 2,258 mn INR

EBIT 1) margin 15.7% Q2’22 13.0% Q2’21 2,741 mn INR

FCF 153.1% vs Q2’21 484.1% vs Q1’22 797 mn INR

2 Business Highlights Q2 and 6M 2022 2 Q4 / 12M 2021 Performance

Q2 Business developments | Key business wins

Automotive Technologies

Automotive Aftermarket

Industrial

Reliability and emission reduction

Increased market coverage

Precision and Efficiency

Key wins in CVs1) for E- Axle Bearings

Business win for Gen-1 Wheel Bearings for PV1) segment

Business wins in CVs1) for light vehicle clutch systems

1) TW - Two-wheelers, CV - Commercial Vehicles, PV - Passenger Vehicles

Product diversification continues, launched Centre Joint Support

Business wins for the FEAD/ Timing Kit, TRBs BS-VI PV1) segment

Key wins for shock absorbers, lubricants and newly launched wipers

New win for CRBs and SRBs in our off- road segment

Key business win for ACBBs and NRBs in engine and transmission application for the TW1) sector

Business wins for Linear Guides in the industrial automation segment

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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2 Business Highlights Q2 and 6M 2022 Textboxes

Executed Business Transfer Agreement for the sale of chain drive business

Chain Drive System

Carve-out rationale • Strategic global divestment with

focus on technology shift in Automotive Technologies division

• A step in the direction towards e-

mobility transition

• Shaped by our carbon-neutrality

commitments

Sale to CATENSYS India Private Limited (part of CATENSYS Group Germany). Business Transfer Agreement executed on 29th June 2022

Chain drive business transaction details

1,070 mn INR revenue FY 2021

155 mn INR net worth Dec’ 2021

294.2 mn INR Slump sale consideration

149.8 mn INR Gain on sale of business

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q2 and 6M 2022

Financial Highlights Q2 and 6M 2022

ESG at Schaeffler India

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

PUBLIC

3 Financial Highlights Q2 and 6M 2022

Revenue from operations | Robust performance

Total revenue

mn INR

15,675

13,168

12,329

17,488

QoQ Growth

YoY Growth

2.9%

19.0%

Revenue Bridge mn INR

11.6%

41.8%

2021

2022

Key aspects • Revenue uptick across all divisions

14,876

15,232

Growth

Automotive Technologies

Automotive Aftermarket

Industrial

Exports & others

Q2 2022 vs Q1 2022

Q2 2022 vs Q2 2021

H2 2022 vs H1 2021

11.5%

19.7%

9.4%

12.8%

40.2%

54.4%

33.7%

61.8%

21.7%

33.9%

27.7%

61.6%

• Exports growth trajectory continues

Sales mix Q2 2022

Exports and Others1)

16%

39%

Industrial

37%

Automotive Technologies

Automotive Aftermarket

1) Exports & Others mainly includes exports to group companies, scrap sale and other operating income

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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3 Financial Highlights Q2 and 6M 2022 2 Q1 2022 Highlights

Earnings Quality | Sustained

EBIT1) mn INR

%Margin

2021

2022

Key aspects

2,602

2,741

1,708

1,604

2,216

2,451

6 0 8 , 1

• Margins remain consistent for the quarter, despite input cost pressure

• Volume gains and sustained countermeasures helped achieving

13.0%

16.6%

13.0%

15.7%

14.9%

16.1%

consistent performance for 6M 2022

6.2%

52.4%

QoQ Growth

YoY Growth

EBIT Bridge mn INR

5.3%

70.9%

6M 2022 : 5,343, 16.1% 6M 2021 : 3,312, 13.0%

%Margin

PAT mn INR

% Margin

2021

2022

2,071

2,258

1,395

1,281

1,708

1,906

10.6%

13.2%

10.4%

12.9%

11.5%

12.5%

6 0 8 , 1

13.0%

15.7%

8.6%

48.4%

QoQ Growth

YoY Growth

9.0%

76.2%

6M 2022 : 4,329, 13.1% 6M 2021 : 2,677, 10.5%

1) EBIT (before exceptional items) - interest income (net) at 116.5 mn INR in Q2 ‘22 (102.5 mn INR Q2’21) ;

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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3 Financial Highlights Q2 and 6M 2022

Working capital, Capex | Delivering on our strategy

Working Capital mn INR

11,413

6,485

12,526

8,713

2021

2022

Key aspects

10,101

9,869

• Working Capital marginally higher due to higher receivables

• Delivering on our capex strategy, 8.0% of sales in Q2’22

• Free cash flow generation improved owing to a better performance –

cash profit and working capital improvement

3M’21

3M’22

6M’21

6M’22

9M’21

15.8%

19.9%

18.0%

20.1%

19.3%

12M’21

18.0%

% to sales

Capex mn INR

1,407

2021

2022

Free Cash Flow mn INR

2021

2022

751

429

460

474

566

1,842

797

1,089

1,849

(208)

% to sales

3M’21

3M’22

6M’21

6M’22

9M’21

3.3%

4.8%

3.5%

6.5%

3.4%

12M’21

3.5%

QoQ Growth

-111.2%

YoY Growth

-111.3%

(1,501)

484.1%

153.1%

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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3 Financial Highlights Q2 and 6M 2022 2 Q4 / 12M 2021 Performance

Performance Indicators

Unit

Q2 2022

Q1 2022

Q2 2021

6M 2022

6M 2021

12M 2021

12M 2020

Revenue

mn INR

17,488

15,675

Revenue growth (YoY) Revenue growth (QoQ) EBITDA

EBITDA Margin

EBIT1)

EBIT Margin

EBT

EBT Margin

PAT

PAT Margin

Capex2)

FCF

% % mn INR

41.8% 11.6% 3,254

18.6%

mn INR

2,741

15.7%

mn INR

2,857

16.3%

mn INR

2,258

12.9%

mn INR

1,407

mn INR

797

19.0% 2.9% 3,107

19.8%

2,602

16.6%

2,772

17.7%

2,071

13.2%

751

(208)

12,329

180.9% (6.4)% 2,089

16.9%

1,604

13.0%

1,707

13.8%

1,281

10.4%

460

33,163

30.1%

6,360

19.2%

5,343

16.1%

5,629

17.0%

4,329

13.1%

2,158

(1,501)

590

25,497

86.5%

4,275

16.8%

3,312

13.0%

3,566

14.0%

2,677

10.5%

889

341

1) EBIT (before exceptional items) - interest income (net) at 116.5 mn INR in Q2 ‘22 (102.5 mn INR Q2’21) ; 2) Capex includes CWIP

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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55,605

47.8%

9,950

17.9%

37,619

-13.7%

5,402

14.4%

7,979

14.3%

8,431

Focused efforts and our 3,462 balanced business mix 9.2% helped to deliver resilient performance 3,972

15.2%

6,291

11.3%

1,929

3,279

10.6%

2,910

7.7%

2,126

4,572

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q2 and 6M 2022

Financial Highlights Q2 and 6M 2022

ESG at Schaeffler India

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

PUBLIC

4 ESG at Schaeffler India

Climate Action Day | A step to sensitize and create climate awareness

Lead & Guide

Create

Inspire

Connect

90 min workshop for all SIL employees

Sensitivity & Foster engagement around Climate change

Commit towards change and impact on personal emission footprint

Global Schaeffler family – Experience sharing

BASE YEAR

CLIMATE NEUTRAL PRODUCTION

CLIMATE NEUTRAL SUPPLY CHAIN

2019

2025

2030

204020402040

Over 100 Sessions across Schaeffler India More than 2,000 Ideas

Schaeffler Group Sustainability Targets

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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4 ESG at Schaeffler India

Social Innovator Fellowship Program | Rewarding solutions that have the potential to positively impact the society

Education

Health & Nutrition

Renewable Energy and Environment

Water Conservation

Waste Management

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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Financial aid

Mentorship program, CIIE

India network & partners

In Summary

Increased volumes and new business developments contributed to the positive sales trend with record revenues

Volume gains and countermeasures helped deliver resilient margins

Capital allocation – remains a priority, on track with our investment strategy

Remain committed on delivering performance amidst market uncertainties

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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Committed to sustainable and responsible growth, driven by our strong customer connect, ensuring all round performance

Thank you

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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Disclaimer

The information contained in this presentation is provided by Schaeffler India Limited (“the Company”), to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) re-circulated, redistributed, passed on, published in any media, website or otherwise disseminated, to any other person, in any form or manner, in part or as a whole, without the prior written consent of the Company. This presentation does not purport to be a complete description of the market conditions or developments referred to in the material.

This presentation contains forward-looking statements. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “should” and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about Schaeffler Group’s beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Schaeffler AG. Forward-looking statements therefore speak only as of the date they are made, and Schaeffler Group undertakes no obligation to update any of them in light of new information or future events.

By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on Schaeffler AG management’s current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Actual results may differ from those set forth in the forward- looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market conditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting our markets, and other factors beyond our control).

This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal with all aspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither Schaeffler Group nor any of its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith.

The material contained in this presentation reflects current legislation and the business and financial affairs of Schaeffler Group which are subject to change

Schaeffler India Limited | Q2 and 6M 2022 Investor Presentation

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