Tilaknagar Industries Limited has informed the Exchange about Investor Presentation for the unaudited Financial Results for quarter ended June 30, 2022.

August 11, 2022

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalai Street, Mumbai 400001 Scrip Code : 507205

To, National Stock Exchange of India Limited Exchange Plaza, C-1, Block-G, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051. Symbol : TI

Sub: Earnings Presentation for unaudited Financial Results for quarter ended

June 30, 2022

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”), please find attached herewith the Earnings Presentation for the unaudited Financial Results for quarter ended June 30, 2022.

The same is also available on our website www.tilind.com.

We request you to take the above information on record.

Thanking you,

Yours faithfully,

For Tilaknagar Industries Ltd.

Dipti Todkar Company Secretary & Compliance Officer

Encl: as above

DIPTI VARUN TODKARDigitally signed by DIPTI VARUN TODKAR Date: 2022.08.11 17:11:41 +05'30' Tilaknagar Industries Ltd. (BSE: 507205 | NSE: TI) 8/11/2022

Earnings Presentation Q1 FY23 (Apr to Jun 2022)

Tilaknagar Industries | Q1 FY23 Earnings Presentation

1

Q1 FY23 PERFORMANCE

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Q1 FY23 – at a glance

Q1 FY23

Q1 FY22

YoY

Q4 FY22

QoQ

Volumes (cases)

Revenue (Net) (Rs.)

Gross Profit (Rs.)

EBITDA (Rs.)

17.7 lacs

11.1 lacs

59.2%

19.5 lacs

9.4%

weakest quarter for TI

▪ Volumes above pre-Covid levels

▪ Strong growth in what has historically been the

230 crs

135 crs

69.7%

241 crs

4.8%

103 crs

76 crs

36.3%

118

12.0%

22 crs

23 crs

-7.1%

26 crs

15.8%

▪ NSR per case largely stable at Rs. 1,157 for Q1 FY23 vs. Rs. 1,162 for Q4 FY22 (-0.5% QoQ); predominantly due to region mix

▪ Significant inflationary pressures felt on raw

material and packaging material costs ‒ ENA cost increased by 18% YoY and 3.5% QoQ ‒ Glass bottles’ cost increased by 30% YoY and

20% QoQ

▪ Foreign exchange fluctuation loss has impacted

EBITDA by Rs. 2.55 crs, compared to Rs. 0.68 crs in Q1 FY22 and Rs. 0.85 crs in Q4 FY22

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Debt reduction journey…

…working towards near net debt-free position by FY24

Debt reduction (Rs. Crs)(a)(b)(c)

Debt as of 30-Jun-22(a)(b)(c)

1,199

High-cost trade deposits (interest rate of 18-20% p.a.) of Rs. 52 crs repaid in Q1 FY23

543

449

380

492

42

60

EARC Term Loan

Trade Deposits

278

Other Debt

361

299

▪ EARC debt is at 9% p.a.

▪ EARC balance debt of Rs. 130 crs will be waived

off on satisfactory repayment

31-Mar-19

31-Mar-21

31-Mar-22

30-Jun-22

31-Mar-21

Gross debt

31-Mar-22 Net debt

30-Jun-22

▪ 81% of EARC Term Loan is repayable in FY24 →

Rs. 54 crs to be repaid in FY23

(a) Debt adjusted for EARC balance debt of Rs. 130 crs which would be waived off in FY24 on following the repayment schedule (b) Debt adjusted for EARC balance debt of Rs. 34 crs which has been converted to equity in Apr-21 (c) Debt includes interest bearing trade deposits which is a part of Other Financial Liabilities

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Significant volume growth over pre-Covid levels

…strong start to FY23

Volume (lacs cases)

71%

41%

64%

91%

17.7

Q1 volumes as % of preceding quarter i.e. Q4 of previous financial year

13.5

▪ Volumes have significantly surpassed pre-Covid levels

11.1

6.0

▪ Q1 FY23 vs. Q1 FY20:

‒ Overall volumes 31%

‒ MHB volumes 37%

Q1 FY20

Q1 FY21

Q1 FY22

Q1 FY23

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Operational highlights (1/2)

14.9

16.5

17.2

11.1

6.0

Volume (lacs cases)

18.1

18.7

19.5

17.7

67.3

54.5

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

FY21

FY22

Net Revenue (Rs. Crs)

168

192

132

135

201

206

241

230

783

549

56

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

FY21

FY22

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Operational highlights (2/2)

69

85

85

76

32

Gross Profit (Rs. Crs)

98

109

118

103

401

271

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

FY21

FY22

19

22

23

10

2

EBITDA (Rs. Crs)

31

32

26

22

54

112

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

FY21

FY22

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Management commentary From the desk of Mr. Amit Dahanukar, Chairman & Managing Director

❑ As expected, the inflationary headwinds persist

‒ While we expect these headwinds to abate in the medium term, we estimate that these pressures will persist in the immediate short

term; over the next quarter or two

‒ Q1 FY23 saw significant pressures on raw material costs as well as packaging material costs

❑ As mentioned in our earnings presentation for Q4 FY22, we are adopting multiple mitigation strategies including focus on profitable

brands, favorable product & regional mix, cost optimization efforts and improved productivity

‒ In addition, we also expect some price increases coming along industry-wide, which will help us lessen the impact of inflation

❑ Our focus on brandy and innovation continues

‒ In June 2022, we launched India’s first premium flavoured brandy under our flagship brand Mansion House, thereby opening doors to

a new segment of young and experimental audience

❑ In FY23, we have also raised Rs. 85 crs by way of a preferential issue of equity shares and warrants to our long term channel partners

in the important southern states of Kerala, Andhra Pradesh and Telangana. This fund raise brings to a close the company's Rs 200 crore capital infusion program

❑ In the quarter gone by, we have also reduced our debt by almost Rs. 70 crs and are well on course to become near net debt free by end

of FY24; a journey which will be achieved through a mix of internal accruals as well as above mentioned equity fund raise

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Extract of Income Statement

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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(Rs. Crs)Q1 FY23Q1 FY22Y-o-Y growth %Q4 FY22Q-o-Q growth %FY22FY21Y-o-Y growth %Revenue from operations (Gross)480.5324.148.2%520.9-7.8%1,792.11,418.426.3%Less: Excise Duty251.0188.832.9%279.8-10.3%1,008.7869.616.0%Revenue from Operations (Net)23013569.7%241.1-4.8%783.4548.842.8%Other income0.70.2239.2%7.8-91.5%10.511.4-8.3%Total Revenue (I)230.2135.569.9%248.9-7.5%793.8560.241.7%EXPENSES:(a) Cost of materials consumed121.463.890.3%120.60.7%378.0291.329.7%(b) Purchases of stock-in-trade0.00.0NM0.0NM0.00.0NM(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade4.6-4.4NM2.962.0%4.4-13.9NM(d) Employee benefits expense8.57.119.0%11.7-27.6%32.125.227.5%(e) Other expenses73.345.461.3%80.1-8.5%256.8192.133.6%Total Expenses (II)207.8111.985.7%215.3-3.5%671.3494.735.7%Profit before interest, tax, depreciation and amortisation (I - II)22.423.6-5.0%33.6-33.4%122.665.587.1%Finance costs13.315.0-11.4%15.5-14.2%61.971.0-12.8%Depreciation and amortisation expense8.08.2-1.8%8.1-0.4%32.733.1-1.2%Profit before tax1.00.4179.4%10.0-89.7%28.0-38.6NMTax expenses :(a) Current tax0.00.0NM0.0NM0.00.0NM(b) Tax for earlier periods0.00.0NM0.0NM-4.0-0.2NM(c) Deferred tax0.00.0NM0.0NM0.00.0NMTotal tax expense0.00.0NM0.0NM-4.0-0.2NMProfit for the period1.00.4179.4%23.2-95.5%45.2-38.4NMRecent Product Developments

Product Launch

▪ Launch of Mansion House Flavoured

Brandy; India’s First Premium Flavoured Brandy

▪ An inclusive drink for all; across age- groups, genders, for all occasions

▪ Available in three flavours

‒ Peach ‒ Orange ‒ Cherry

▪ Initially launched in Puducherry; other

regions to follow

▪ Can be enjoyed neat, on the rocks, with a single mixer, as the base in a cocktail or as a liqueur

Removal of Monocartons

✓ ✓

Focus on sustainability

Cost saving measure

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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COMPANY & INDUSTRY OVERVIEW

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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About the Company

Largest premium brandy manufacturer in India with presence across all segments of IMFL

16

Manufacturing units across 12 states Owned: 4 units Contract manufacturing: 12 units

15+

Brands across products

94%

Share of Brandy as % of total volumes

6.73 mn

Volumes (in cases) sold

86%

Share of sales to South India as % of total volumes

* All data is for FY22

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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We sell millions of cases across India

MANSION HOUSE

❑ Mansion House is a millionaire brand

(more than 5.5 mn cases sold in FY22)

❑ Mansion House is the highest selling premium brandy in India

❑ Manufactured across all units

❑ A brand with a high brand loyalty driving repeat purchases

COURRIER NAPOLEON

❑ Fast approaching millionaire brand status

(0.8 mn cases sold in FY22)

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Our strategic focus…

…the way forward

Volume growth

Market share growth(b)

Efficient levels of capacity utilisation

▪ FY22 growth in volumes for MHB and

CNB stands at 24% each ▪ 6 yrs CAGR of 9.1% for MHB ▪ Equal focus on high-growth, nascent

regions

▪ Continued focus on brandy ▪ Market share (as % of brandy) growth

from 12.4% to 16.8%

▪ Market share (as % of IMFL) growth from

2.4% to 3.4%

▪ Pernod Ricard agreements enables efficient capacity utilisation levels ▪ Incremental region-specific growth

enabled through bottling arrangements

Debt repayment and cash flow generation

Resolution of auditor qualifications

▪ Focus on repayment of high-cost debt ▪ Target to become near net debt free by

▪ Focus on taking proactive measures to

resolve all auditor qualifications

FY24

(a) The above volume data is for Mansion House Brandy in the states of Telangana, Andhra Pradesh, Karnataka, Kerala, Puducherry and Goa i.e. states which contribute 88% of our total volumes (b) Market share growth comparison between FY17 and FY22 in the states of Telangana, Andhra Pradesh, Karnataka, Kerala, Puducherry and Goa

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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MHB and MHB Brandy segment growing faster…

…than overall Brandy, Whiskey and IMFL

MHB vs. Industry Growth (a)

MHB market share as % of brandy (a)

MHB market share as % of IMFL (a)

Market share growth of 36% over 6 years

Market share growth of 41% over 6 years

Category

MHB

Brandy Segment

Whiskey Segment

IMFL

CAGR

9.1%

2.6%

2.1%

1.9%

MHB: Mansion House Brandy; 6 year CAGR from FY17 to FY22 (a) The above data is for the states of Telangana, AP, Karnataka, Kerala, Puducherry and Goa i.e. states which contribute 88% of our total volumes

12.4%

FY17

16.4%

FY21

16.8%

FY22

2.4%

FY17

3.0%

FY21

3.4%

FY22

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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FY22 FINANCIALS

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Improving business fundamentals

Premiumisation strategy to enhance margins and cash flows

Total Volumes Sold (mn cases)

Brandy Sales (mn cases)

84%

89%

91%

92%

94%

5.92

FY18

6.64

FY19

6.44

FY20

5.45

FY21

6.73

FY22

4.98

FY18

5.92

FY19

5.86

FY20

5.03

FY21

6.33

FY22

Share of Brandy to total volumes sold

NSR per case (Rs.)

Robust sales in South India (mn cases)

83%

87%

86%

86%

86%

904

FY18

985

FY19

1,005

FY20

1,014

FY21

1,136

FY22

4.91

FY18

5.80

FY19

5.51

FY20

4.70

FY21

5.82

FY22

Share of South India sales to total volumes sold

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Focus on margins and cashflows

Most of write-offs impacting EBITDA have been undertaken

Net Revenues (Rs. Crs)

Gross Profit (Rs. Crs) and Gross Margin (%)

578

FY18

661

FY19

653

FY20

EBITDA (Rs. Crs) and EBITDA Margin (%)

8%

56

3 0%

FY18

FY19

-52

-8%

FY20

549

FY21

10%

783

FY22

14%

54

112

51%

52%

293

FY18

342

FY19

46%

301

FY20

49%

51%

271

FY21

401

FY22

Finance Cost (Rs. Crs) and as % of Net Revenues

26%

28%

20%

129

FY20

13%

71

FY21

8%

62

FY22

FY21

FY22

152

FY18

184

FY19

(a) EBITDA for FY20 is not comparable due to write-offs impacting EBITDA

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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Disclaimer

This presentation may include statements which may constitute forward-looking statements including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Tilaknagar Industries’ future business developments and economic performance. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements.

The information and opinions contained in this presentation are current. The Company undertakes no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or otherwise. Any opinions or information expressed in this presentation are subject to change without notice.

Tilaknagar Industries | Q1 FY23 Earnings Presentation

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For further information, please contact: Ameya Deshpande Head – Corporate Development & Strategy Email: adeshpande@tilind.com

THANK YOU