STOVEKRAFTNSE8 November 2022

Stove Kraft Limited has informed the Exchange about Investor Presentation

Stove Kraft Limited

November 08,2022

To,

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 543260

Dear Sir/Madam,

National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051 NSE Symbol: STOVEKRAFT

Sub: Investor Presentation for Q2FY23

As per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015, please find enclosed the Investor Presentation for Q2FY23.

Kindly note our earnings call is scheduled on November 08,2022 (Tuesday) at 3:30 PM, IST.

Please take the same on the record.

Thanking you, For Stove Kraft Limited

_____________ Rajendra Gandhi Managing Director

STOVE KRAFT LIMITED

Q2 & H1FY23 INVESTOR PRESENTATION

Safe Harbor

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by the trailing restrictions.

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commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No

representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or

opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify

or amend this communication or to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes

inaccurate.

Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking

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assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or

achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to

differ materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to

the Company, (d) technological changes, (e) investment income, (f) cash flow projections, and (g) other risks.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The

Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.

The only way to do great work is to love what you do

- Steve Jobs“

”

Q2 & H1FY23 FINANCIAL PERFORMANCE

Q2FY23 Performance (Y-o-Y)

Q2FY23 Revenues

Q2FY23 Gross Profit

INR 406.2 crores

INR 131.9 crores

+11.9% y-o-y

+12.9% Y-o-Y

Q2FY23 EBITDA^

INR 47.0 crores

+9.2% Y-o-Y

Q2FY23 PAT

INR 25.9 crores

+13.0% Y-o-Y

No. of Outlets

6,605

Revenue Breakup: Q2 FY23

96,398

29.7%

25.4%

89,793

Jun-22

Outlets added in Q2FY23

Sep-22

5.9%

10.5%

19.0%

9.5%

Pressure Cookers

LED

Induction Cooktop

Gas Cooktp

Nonstick Cookware

Mixers / Small Appliances / Others

^ EBITDA is before allowance for expected credit loss; Rs.1 crore for Q2 FY23.

H1FY23 Performance (Y-o-Y)

H1FY23 Revenues

H1FY23 Gross Profit

INR 681.3 crores

INR 222.4 crores

+18.1% Y-o-Y

+16.9% Y-o-Y

H1FY23 EBITDA^

INR 69.4 crores

+5.8% Y-o-Y

H1FY23 PAT

INR 34.0 crores

-6.8% Y-o-Y

No. of Outlets

17,173

Revenue Breakup: H1 FY23

96,398

27.6%

23.7%

79,225

Mar-22

Outlets added in H1FY23

Sep-22

6.5%

11.4%

21.1%

Pressure Cookers

LED

Induction Cooktop

Gas Cooktp

Nonstick Cookware

9.7%

Mixers / Small Appliances / Others

^ EBITDA is before allowance for expected credit loss; Rs.1.75 crore for Q2 FY23.

Profit & Loss Statement – Q2 & H1 FY23

Profit & Loss Statement (Rs. Crs.) Revenue from Operations Cost of Materials Consumed Changes in Inventories of Finished Goods and Work in Progress Manufacturing and Operating Costs Gross Profit GP % Employee Benefits Expense Other Expenses EBITDA EBITDA % Other Income Depreciation and Amortisation Expense EBIT Finance Costs Exceptional Items PBT Total Tax Expense Profit for the year PAT %

Q2 FY23 406.2

Q2 FY22 362.8

Y-o-Y 11.9%

215.2

51.4

7.8

131.9

32.5%

36.2

48.6

47.0

217.4

32.4

(3.7)

116.8

32.2%

30.3

43.4

43.1

11.6%

11.9%

(0.8)

7.3

38.9

3.4

1.0

34.5

8.6

25.9

6.4%

0.1

4.8

38.4

3.9

2.5

32.1

9.1

22.9

6.3%

12.9%

9.2%

1.2%

7.5%

13.0%

Q1FY23 275.1

169.8

22.8

(8.1)

90.5

32.9%

31.5

36.7

22.4

8.1%

(1.5)

6.6

14.3

3.0

0.8

10.6

2.5

8.1

2.9%

Q-o-Q 47.7%

H1FY23 681.3

H1FY22 577.0

Y-o-Y 18.1%

385.0

74.2

(0.3)

222.4

32.6%

67.6

85.3

69.4

346.5

50.9

(10.5)

190.2

33.0%

54.1

70.5

65.6

10.2%

11.4%

(2.3)

13.9

53.2

6.4

1.8

45.1

11.1

34.0

5.0%

0.6

8.9

57.3

6.8

4.8

45.6

9.1

36.5

6.3%

45.7%

110.3%

172.2%

225.6%

220.6%

16.9%

5.8%

(7.1%)

(1.2%)

(6.8%)

Balance Sheet as on 30th Sep 2022

Equity and Liabilities (Rs. Crs.) Equity share capital Other equity Total Equity Financial liabilities Borrowings Lease liabilities Deferred tax liabilities (net) Provisions Total Non-Current Liabilities Financial liabilities Borrowings Lease liabilities Trade payables Other financial liabilities Provisions Other current liabilities Current tax liabilities (net) Total Current Liabilities Total Liabilities Total Equity and Liabilities

30-Sep-22 32.9

366.6

399.4

35.2

10.6

0.0

5.1

50.9

127.6

0.7

247.7

28.9

7.2

56.6

1.2

469.8

520.7

920.1

31-Mar-22 32.9

331.1

364.0

34.2

0.0

6.2

40.5

121.0

0.0

127.4

27.9

5.4

42.0

0.4

324.0

364.5

728.5

Assets (Rs. Crs.) Property, plant and equipment Capital work-in-progress Intangible Assets Right of use Financial Assets Investments Other Financial assets Income Tax Assets (Net) Current Tax Assets Other non‐current assets Total Non-Current assets Inventories Financial Assets Trade receivables Cash and cash equivalents Bank balances Loans Other financial assets Other current assets Total Current Assets Total Assets

30-Sep-22 337.6 4.3 4.6 11.9

31-Mar-22 309.4 9.2 3.0 0.0

0.0 5.0 2.5 0.0 27.4 393.3 254.4

189.3 10.4 17.1 0.0 1.3 54.3 526.8 920.1

0.0 8.2 3.2 0.2 20.7 353.8 217.4

96.7 0.4 11.6 0.0 1.5 46.9 374.6 728.5

Cash Flow Statement

Cash Flow Statement (Rs. Crs.)

Cash Flow from Operating Activities

Profit before Tax

Adjustment for Non-Operating Items

Operating Profit before Working Capital Changes

Changes in Working Capital

Cash Generated from Operations

Less: Direct Taxes paid

Net Cash from Operating Activities

Cash Flow from Investing Activities

Cash Flow from Financing Activities

Net increase/ (decrease) in Cash & Cash equivalent

Add: Cash and cash equivalents as at 1st April

Cash and cash equivalents as at 30

September

Sep-22

Sep-21

45.1

(25.3)

70.4

(7.6)

62.8

(9.4 )

53.4

(43.8)

0.4

10.0

0.4

10.4

45.6

(20.5)

66.0

(29.8)

36.3

(8.6)

27.7

(61.3)

9.8

(23.8)

29.5

5.7

Success is walking from failure to failure with no loss of enthusiasm

- Winston Churchill“

”

ABOUT STOVE KRAFT LIMITED

Key Milestones

Granted trademark registrations for Gilma

Investments by SIDBI Commenced production at Harohalli facility

Commenced exports to retailers in the USA

Achieved sales of 9.1 million units

IPO with listing on NSE and BSE

2001

2008

2014

2018

2021

1999

2003

2010

2015

2019

Incorporated Stove Kraft as a Pvt. Limited

Granted trademark registrations for Pigeon

First Investment by Sequoia

Certificate of registration of design was granted for our product ‘Super cooker’

LED Plant in Bangalore & Inner Lid Cooker Plant in Baddi, HP

Diverse range of products across consumer preferences…

Cookware–Pressure cooker, wonder cast cookware, non-stick cookware, electric rice cookers and titanium hard anodized cookware

Cooktops and other kitchen solutions –Hobs, glass cooktops, stainless steel cooktops, induction cooktops and chimneys

Small appliances –Mixer grinders, rice cookers, electric kettles, food toasters, sandwich makers, knives, steam irons, steamers, air fryers and electric grills

juicers,

Other products –Emergency lamps, water bottles and flasks, aluminum ladders, cloth dryers, water heaters, dustbins and mops

LPG Stoves

Massage apparatus

Water heaters

Chimney

Hobs

Cooktops

Kitchen sinks

appliances

– juicers,

Food Small processors, hand blenders, hand mixers, mini choppers, oven toaster grills, rice cookers, coffee makers, toasters, sandwich makers and kettles

Other products – Steam irons, dry irons, water heaters and oil fin radiators

LED bulbs

Battens

Downlights

Value

Semi - Premium

Premium

Multi-brand approach to capture the entire value chain…

20+ year old brand One of the market leaders for certain products such as cookware

Launched in 2016 and manufacturing commenced in 2019

*Source: F&S Report

• Offers a modular kitchen experience • Comprises chimneys, hobs and cooktops across price

ranges and designs

• Sold exclusively though Gilma branded outlets, which are

owned and operated by franchisees

• Gilma specific mobile application for customers to raise

post sales service requests

• Entered into an exclusive brand licensing agreement

with Stanley Black & Decker Inc. in 2016

• Retailer for and provider of post-sales service for

blenders, juicers, breakfast appliances, etc.

• Separate distribution spread across 10 states

State of the Art Manufacturing Facilities with focus on quality

Baddi, Himachal Pradesh

Dedicated in-house R&D facility

Comprising of 13 personnel and tie-ups with foreign companies for technology enablement

ISO 9001:2015 certified

Bengaluru, Karnataka

Focus on quality is maintained at all stages

Sourcing of raw materials Product development Manufacturing stage

Rigorous review and monitoring process

Subject to a rigorous review and monitoring process undertaken at our Bengaluru Facility

Sourcing team and quality assurance team

Dedicated sourcing team and quality assurance team based out of China

Total ~46 acres with ~30 acres available for future expansion

Both facilities have a high level of backward integration, and our manufacturing process is not dependent on third party suppliers and OEMs

Professional Management

Mr. Rajendra Gandhi, Managing Director

Mr. Rajiv Mehta, Chief Executive Officer

Mr. A.S. Balaji, Chief Financial Officer

• Founder of Stove Kraft with over

21 years of experience

• Entrepreneur who built Stove Kraft the leading brands for kitchen appliances in India

to one of

• Continues to be closely involved the Company and is in promoting Stove Kraft’s culture of

in the day-to-day affairs of instrumental innovation

•

director

Independent the board of Stove Kraft since June 2018 & has been re-designated as from the September 2019

CEO with

effect

• Previously worked as the CEO of

Arvind Limited

• Chartered

and

Accountant

Cost rich Accountant over a decade of experience business excellence, process automation & risk consulting.

finance,

• Previously associated with reputed organizations like CavinKare Pvt Ltd and KPMG

• Bachelor’s degree in Chemical Engineering from the University of Mumbai and a Master’s degree in Science from University of Pennsylvania; MBA from INSEAD

• Demonstrated history of working with private and publicly held companies in diverse industries including FMCG, Logistics, insurance, manufacturing etc

Ms. Neha Gandhi, Executive Director

Mr. Venkitesh N, Head–Corporate Planning

Mr. Rohit Mago, Head – Baddi Manufacturing Unit

• Holds a Bachelor’s Degree in Business Administration from Christ University (Bengaluru) and completed Post Graduation Certificate Program in Sales and Marketing Management from MICA

• Served as a Graduate Trainee at Viacom18

• Bachelor’s degree in Technology from University of

Kerala

• 25+ years of experience in manufacturing, product development and project management with a stint in BPL for 13 years

• B Sc, Government Autonomous Science College, Jabalpur; MBA, Rani Durgavati Vishwavidyalya; Post- graduate certificate in retail management, XLRI Jamshedpur

• 18+ years of experience including a 14-year stint with

HPCL

*Source: F&S Report

Backed by Experienced Board

Ms. Shubha Rao Mayya, Independent Director

Mr. Rajendra Gandhi, Managing Director

• Holds a bachelor’s degree in commerce from the University of Mumbai and is a

• Founder of Stove Kraft with over 21 years of experience

chartered accountant with the Institute of Chartered Accountants of India

• Entrepreneur who built Stove Kraft to one of the leading brands*for kitchen appliances

• Prior experience includes ICICI Limited, ICICI Prudential Life Insurance Company and

in India

Tata Consultancy Services

• Continues to be closely involved in the day-to-day affairs of the Company and is

• Serves as a Director on the board of Ace Manufacturing System Limited

instrumental in promoting Stove Kraft’s culture of innovation

Mr. Lakshmikant Gupta, Independent Director

Mr. Rajiv Mehta, Chief Executive Officer

• Holds a bachelor’s degree in economics from Hans Raj College, University of Delhi and a post-graduate diploma in business management from Institute of Management Technology, Ghaziabad

• Previously associated with Ibibo Group, Procter & Gamble and Girnar Software

•

Independent director on the board of Stove Kraft since June 2018 and has been re- designated as the CEO of the Company with effect from September 2019. Previously worked as the CEO of Arvind Limited

• Bachelor’s degree in Chemical Engineering from the University of Mumbai and a

Master’s degree in Science from University of Pennsylvania; MBA from INSEAD

Mr. Anup S Shah, Independent Director

Ms. Neha Gandhi, Executive Director

• Mr. Anup S Shah is an Additional Independent Director of the Company. He holds a Bachelor’s Degree in Commerce from HR College, Mumbai and a degree in law from Government Law College, Mumbai.

• Holds a Bachelor’s Degree in Business Administration from Christ University (Bengaluru) and completed Post Graduation Certificate Program in Sales and Marketing Management from MICA

• He has over 36 years of experience in the field of law, specifically real estate law. He is

• She has earlier served as a Graduate Trainee at Viacom18

the founder partner of Anup S Shah Law Firm in Bangalore.

Shift in Consumption Patterns and Favourable Governments Policies

Indian Consumer Appliance Market expected to grow @CAGR of ~9%

Key Growth Drivers

Indian Appliance and Consumer Electronics (ACE) Market

Kitchen Appliances Market

(INR Bn)

LCA

SCA

Non Stick Cookware

3,150

2,050

2017

2022E

SKL’s product mix favorable to market growth trends - LCA and Non Stick growing at 12% and 15%

207 10 86

111

2020

350

127

202

2025E

India Government’s Policies Favourable For The Consumer Appliances Industry

•

Shift from unorganized sector to organized sector in Indian manufacturing with the GST Implementation

Lower tax brackets (5%, 12% and 18%) used for Indian Kitchen Items vs excise +VAT taxed at ~31%

• Make In India Initiative gave ACE market necessary boost which fostered Retail Manufacturing

•

Pradhan Mantri Ujjwala Yojana – Target to provide 5 Crore LPG connection to under privileged women

• Majority Kitchen appliances are electricity driven, electricity consumption tripled since 2000

• Niche market for foreign investors, as Govt. allowed 100% FDI through automatic route in the electronic

hardware manufacturing sector

Moving towards Aspirational Lifestyle from functional Kitchen tools.

Need for Space Utilization –Emerging Concept of Modular Kitchen

Growth of E-Commerce and easy Financing options

Awareness of Cookware through Mass Media and Retality

Programs

Health and Environment Concerns

Technological Advancements

All information on this slide is obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled “Kitchen Appliances Market in India” dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report"); “E” signifies Estimated

Indian Large & Small Cooking Appliance Market

Increasing Market for Large Cooking Appliances (LAC)

Increasing Trend by Sub Segments – Value (INR Billion)

Large Cooking Appliances

14,209

15,453

16,817

18,313

125

141

159

19,955

179

21,761

202

5 25 26

5 29 30

6 34

6 39

7 45

8 52

SKL is the market leader* in Free standing hobs and cook tops

2021F

2022F Volume ('000 Units)

2023F

2024F

2025F

Value (INR Bn)

2020

2021F

2022F

2023F

2024F

2025F

Free-standing Hobs

Cook Tops

Cooker Hoods

Built-in Hobs

Increasing Market for Small Cooking Appliances (SAC)

Increasing Trend by Sub Segments –Value (INR Billion)

Small Cooking Appliances

52,613

56,405

60,470

64,828

69,501

74,511

101

109

118

127

12 12 18

13 13 19

14 14 21

15 16

16 17

17 18

2021F

2022F

2023F

2024F

2025F

Volume ('000 Units)

Value (INR Bn)

2020

2021F

2022F

2023F

2024F

Mixer Grinder

Pressure Cooker

Food Processors

2025F

Others

111

2020

* As per market share of retail sales volume; # Others include electric rice cooker, blenders, electric kettle, coffee maker and juice extractor

Non – Stick Cookware and Indian Household Utility Products

Increasing Market for Non-Stick Cookware

Types of Non-Stick Cookware Used (%) in 2020

8,590

9,437

10,367

11,389

16.8%

9.9%

74.1%

67.0%

56.2%

7,117

7,819

9.7

2020

11.3

13.2

15.4

18.0

21.0

2021F

2022F

2023F

2024F

2025F

CAGR

Value (INR Bn)

Volume ('000 Units)

a w a T

i a d a K

n a P g n

i y r F

6.4%

c i m a r e C

e r a w k o o C

1.9%

1.3%

y t t e h c a p p A

k k a r a y i

n a P

l a

35.1%

s r e h t O

Company has prominent position in South India for non-stick cookware

Household Utility Products – Market INR Billion in 2018

• • •

• •

Stove Kraft Limited is the 3rd largest market share (12.4%) by volume in Non- Stick Cookware

It enjoys a prominent position in the Non-Stick cookware market in the southern region

242

216

Stove Kraft Limited has one of the few facilities in India to have an automated roller coating line for

manufacturing of non-stick cookware

It offers special range of products which cater to the regional cuisine of Southern India

Latest innovation aimed at product efficiency and user convenience includes a new MIOTM non-stick cookware range

– – –

Developed using latest Italian technology ensuring high durability and smoothness Range has 5 layer ‘Scandia’ coating

144

Water Bottles

Dustbin

Flasks

Emergency Lamps

Ladders

Clothes Drying Stand

Floor Mop and Bucket

Except for Company specific information, all other information on this slide has been obtained from the industry report prepared by Frost & Sullivan (India) Ltd. titled “Kitchen Appliances Market in India” dated December 16, 2019, read with the revised industry report dated November 24, 2020 ("F&S Report")

Thank You

Investor Relations Advisors :

CIN: L29301KA1999PLC025387

Contact Person:

Email Address:

A.S. Balaji- Chief Financial Officer

cs@stovekraft.com

Mr. Irfan Raeen +91 97737 78669 irfan.raeen@linkintime.co.in

Mr. Ashish Chovatia +91 99300 44680 ashish.chovatia@linkintime.co.in

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