SCHAEFFLERNSE19 October 2022

Schaeffler India Limited has informed the Exchange about Investor Presentation

Schaeffler India Limited

Schaeffler India Limited · Pune · Maharashtra

BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C – 1, Block G, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai-400001 Mumbai-400051 Company Code: 505790 Company Code: SCHAEFFLER

Sub: Investor Presentation

Dear Sirs,

19/10/2022

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 ended September 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 Sadanand Tech 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 – Q3 and 9M 2022

October 19, 2022

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q3 and 9M 2022

Financial Highlights Q3 and 9M 2022

Other Highlights

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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1 Economy & Industry 2 Economy & Market

Economy | Inflationary pressure remains, economic growth subdued

2020

2021

YTD CY2022 Growth

GDP 1) 3)

20.1

8.4%

13.5

IIP 1) 3)

44.4

5.4%

• For CY2021, GDP grew by 8.3%

• H1 CY2022 growth stands at 8.4% and

CY2022 GDP is expected to grow at 7.7%

2.5

8.4

5.4

4.1

Q2 Prov

2021

2022

6.0

9.5

2021

2.1

1.8

Automotive Production 2) 4)

17.8%

CPI 1)

322

32.3

16.0

34.2

27.8

5.6

4.9

5.1

5.0

6.3

12.8

0.7

Q3 Prov

2022

6.9%

7.3

7.0

-9.2

-2.8

2021

2022

Q3 Prov

2021

2022

• IIP posted degrowth of 0.8% in Aug; H1 CY2022 mining, manufacturing, & electricity stands at 4.0%, 5.2%, and 8.2% respectively

growth

for

• YTD CY2022 automotive production

registered a growth of 17.8%; PVs, CVs remained strong with some challenges in the tractor segment

• Global events causing disruptions in the supply chain and inflationary pressure

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. 6.9% 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%, 16% and 16% respectively

•

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 | Q3 and 9M 2022 Investor Presentation

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1 Economy & Industry 1 Economy & Industry

Core sector performance | Growth showing positive movement

2020

2021

YTD CY2022 Growth

Cement Production (mn T)

10.0%

Steel Production (mn T)

5.2%

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

Coal Production (mn T)

14.1%

Electricity Generation (bn KWH)

8.1%

68 72

140 142 146 144 138 138

121 117

120 112

132 127 118 124

135 137

123 123

118

108

Overall core sector index performance for YTD CY2022 is 7.9% compared to the same period 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 | Q3 and 9M 2022 Investor Presentation

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1 Economy & Industry 1 Economy & Industry

Automotive sector performance | Positive traction visible

2020

2021

YTD CY2022 Growth

Two and three wheelers (mn Units) 1)

4.0%

Passenger Vehicles (Th Units) 2)

22.0%

1.6

1.9

2.0

1.6 1.6

1.7

1.5

1.6

1.8

2.1

1.9

2.0

1.8

1.7

1.4

0.7

351 353 373

349 338

401

379

367

422

1.4

350

331

374

331

364

320

292

291

296

310

224

144

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

Commercial Vehicles (Th Units)2)

37.7%

Agriculture Tractors (Th Units) 3)

-8.6%

108

104

104 101 104

105

100

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

• Growth in TWs and PVs on the back of festive season and easing of raw material challenges

• YTD YoY growth in CVs at 37.7%, outlook remains positive due to strong infrastructure push, fleet upgrades and low base effect

• YTD YoY growth for tractors seeing a decline 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 | Q3 and 9M 2022 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q3 and 9M 2022

Financial Highlights Q3 and 9M 2022

Other Highlights

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

PUBLIC

2 Business Highlights Q3 and 9M 2022 2 Q4 / 12M 2021 Performance

Q3 2022 | Consistent performance continues

Key Messages

Despite a challenging market environment, sustained performance on the back of our balanced business mix

Trajectory for business wins in both Automotive and Industrial businesses continues

Margin performance – consistent and sustained

Focus on constant customer engagement remains – REPXPERT Automotive Aftermarket Mobile Technical Training Van

Corporate Governance Scorecard - continue to remain in the leadership quadrant

Headwinds due to global market outlook and inflation remain

Sales growth 18.1% vs Q3’21 0.4% vs Q2’22 17,564 mn INR

PAT margin 12.3% Q3’22 11.5% Q3’21 2,154 mn INR

EBIT 1) margin 15.7% Q3’22 14.9% Q3’21 2,756 mn INR

FCF -33.5% vs Q3’21 -9.2% vs Q2’22 724 mn INR

1) EBIT (before exceptional items)

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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2 Business Highlights Q3 and 9M 2022 2 Q4 / 12M 2021 Performance

Q3 Business developments | Key business wins

Automotive Technologies

Automotive Aftermarket

Industrial

Reliability and emission reduction

Increased market coverage

Precision and Efficiency

Key win in CVs1) for double clutch systems

Business win for needle bearings and DGBBs for PV1) segment

Business wins in PVs1) for light vehicle clutch systems

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

Volume wins for our newly launched product – center joint support

Set up our Mobile Training Center under our REPXPERT brand

Continue to expand our market coverage for shock absorbers, lubricants and wipers

Key business wins for CRBs, SRBs and TRBs in our off-road segment

New business win for SRBs, TRBs and LSBs in our energy segment

Business wins for linear guides in the industrial automation segment and DGBB and NRBs in the TW 1) segment

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

PUBLIC

2 Business Highlights Q3 and 9M 2022

REPXPERT | Automotive Aftermarket Mobile Technical Training Van

No. of Garages 1100

Days on Road 81

No. of Sessions 102

Total Customer 1575

Total KM on Road 8800

Training Hours 306

No. of Cities 36

Target Group

Repair Garages

Fleet Workshops

Multi Brand Garages

Retail Markets

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q3 and 9M 2022

Financial Highlights Q3 and 9M 2022

Other Highlights

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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3 Financial Highlights Q3 and 9M 2022

Revenue from operations | Sustained revenues

Total revenue

2021

2022

Key aspects

mn INR

15,675

13,168

12,329

17,488

17,564

14,876

15,232

• YTD 2022 growth momentum continued • Balanced business mix helped in sustaining quarterly revenues

QoQ Growth

YoY Growth

2.9%

19.0%

Revenue Bridge mn INR

11.6%

41.8%

0.4%

18.1%

Growth

Q3’22 vs Q2’22

Q3’22 vs Q3’21

9M’22 vs 9M’21

Automotive Technologies

Automotive Aftermarket

Industrial

Exports & others

Sales mix Q3 2022

Exports and Others1)

5.5%

0.9%

-5.4%

1.3%

16%

28.0%

3.8%

-0.2%

61.1%

23.9%

21.4%

16.9%

61.5%

Automotive Technologies

41%

Industrial

34%

Automotive Aftermarket

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

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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3 Financial Highlights Q3 and 9M 2022 2 Q1 2022 Highlights

Earnings Quality | Continuing consistent performance

EBIT1) mn INR

%Margin

2021

2022

Key aspects

2,602

2,741

2,756

2,216

2,451

1,708

1,604

13.0%

16.6%

13.0%

15.7%

14.9%

15.7%

16.1%

6 0 8 , 1

• YTD 2022 margin performance improved, higher by ~227 bps on the back of volume gains, sustained countermeasures and business mix

• Q3CY2022 margins sustained - business mix and countermeasures

continue to help achieve consistent quarterly performance

6.2%

52.4%

QoQ Growth

YoY Growth

EBIT Bridge mn INR

5.3%

70.9%

0.6%

24.4%

9M 2022 : 8,099, 16.0% 9M 2021 : 5,528, 13.7%

%Margin

PAT mn INR

% Margin

2021

2022

2,071

2,258

1,395

1,281

2,154

1,906

1,708

10.6%

13.2%

10.4%

12.9%

11.5%

12.3%

12.5%

6 0 8 , 1

14.9%

15.7%

1) EBIT (before exceptional items) - interest income (net) at 139.6 mn INR in Q3 ‘22 (79.9 mn INR Q3’21) ;

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

PUBLIC

8.6%

48.4%

QoQ Growth

YoY Growth

9.0%

76.2%

-4.6%

26.1%

9M 2022 : 6,482, 12.8% 9M 2021 : 4,385, 10.9%

3 Financial Highlights Q3 and 9M 2022

Working capital, Capex | Delivering on our commitment

Working Capital mn INR

11,413

8,713

6,485

12,526

12,932

10,101

9,869

2021

2022

Key aspects

• Working Capital levels maintained, YoY increased marginally due to

inventory increase for improving service levels

• Capex framework – efficient and judicious use of resources

• Modest free cash flow generation on the back of overall performance

3M’21

3M’22

6M’21

6M’22

9M’21

9M’22

12M’21

15.8%

19.9%

18.0%

20.1%

19.3%

19.9%

18.0%

% to sales

Capex mn INR

1,407

1,005

2021

2022

Free Cash Flow mn INR

751

429

460

474

566

1,842

797

1,089

724

(208)

% to sales

3M’21

3M’22

6M’21

6M’22

9M’21

9M’22

12M’21

QoQ Growth

-111.2%

3.3%

4.8%

3.5%

6.5%

3.4%

6.2%

3.5%

YoY Growth

-111.3%

(1,501)

484.1%

153.1%

-9.2%

-33.5%

2021

2022

1,849

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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3 Financial Highlights Q3 and 9M 2022 2 Q4 / 12M 2021 Performance

Performance Indicators

Unit

Q3 2022

Q2 2022

Q3 2021

9M 2022

9M 2021

12M 2021

12M 2020

Revenue

mn INR

17,564

17,488

14,786

Revenue growth (YoY) Revenue growth (QoQ) EBITDA

EBITDA Margin

EBIT1)

EBIT Margin

EBT

EBT Margin

PAT

PAT Margin

Capex2)

FCF

% % mn INR

18.1% 0.4% 3,273

18.6%

mn INR

2,756

15.7%

mn INR

2,896

16.5%

mn INR

2,154

12.3%

mn INR

1,005

mn INR

724

41.8% 11.6% 3,254

18.6%

2,741

15.7%

2,857

16.3%

2,258

12.9%

1,407

797

32.7% 20.7% 2,712

18.2%

2,216

14.9%

2,296

15.4%

1,708

11.5%

474

1,089

50,728

25.6%

9,634

19.0%

8,099

16.0%

8,525

16.8%

6,482

12.8%

3,163

1,314

40,373

62.3%

6,987

17.3%

5,528

13.7%

5,863

14.5%

4,385

10.9%

1,363

1,430

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

1) EBIT and EBT (before exceptional items) - interest income (net) at 139.6 mn INR in Q3 ‘22 (79.9 mn INR Q3’21) ; 2) Capex includes CWIP

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights Q3 and 9M 2022

Financial Highlights Q3 and 9M 2022

Other Highlights

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

PUBLIC

4 Other Highlights

Corporate Governance Scorecard | Leadership position continues

SCORING GRADES

SCHAEFFLER SCORECARD

BSE: 505790 | NSE: SCHAEFFLER

Index: S&P BSE 500, NIFTY 500

Sector: Industrials

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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* As per evaluation done by IiAS

4 Other Highlights

In Summary

Revenue performance in line despite sluggish macroeconomic environment

Balanced business mix and continued countermeasures enabled sustained performance

Capex – on track for consistent capital deployment

Remain cautiously optimistic on the back of weakening global outlook and uncertainties

Committed on constant customer engagement while ensuring sustainable value addition for all our stakeholders

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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4 Other Highlights

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 | Q3 and 9M 2022 Investor Presentation

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4 Other Highlights

Thank you

Schaeffler India Limited | Q3 and 9M 2022 Investor Presentation

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