SCHAEFFLERNSE27 July 2023

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,

27/07/2023

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, 2023.

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,

Schaeffler India Limited Investor Presentation – Q2 and 6M 2023

July 27, 2023

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights - Q2 and 6M 2023

Financial Highlights - Q2 and 6M 2023

ESG

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

1 Economy & Industry 2 Economy & Market

Economy | Growth remains resilient

GDP 1) 3)

13.1

IIP 1) 3)

12.8

4.0

6.2

6.1

4.5

1.8

1.7

2.4

4.1

4.5

5.2

Q1 Prov

Apr

May

2022

2023

2022

2023 Prov

• Q1 GDP at 6.1%, on growth path backed

by moderating inflation

• IIP growth in 2023 due to healthy run of

the capital goods sector

• YoY Q2 growth in PVs at 6.9%, muted growth in CVs at 1.7% and a de-growth in tractors of 8.9%

• CPI

inflation moderated due to sharp deceleration in fuel prices, upside risk due to delayed monsoons and surging food prices

Automotive Production 2) 4)

33.7

27.2

CPI 1)

6.3

7.3

7.0

6.1

6.2

18.6

15.8

3.2

4.6

•

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. Contribution of manufacturing, mining, & electricity in IIP stands at 78%, 14%, & 8% respectively Automotive Production includes PVs, CVs, & Tractors with production share of 69%, 16%, & 15% respectively

-2.8 Q1

2022

2023

2022

2023

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

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

1 Economy & Industry 1 Economy & Industry

Core sector performance | Growth momentum continues

2022

2023

YTD CY2023 Growth

Cement Production (mn T)

6.2%

Steel Production (mn T)

12.0%

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

Coal Production (mn T)

106

11.2%

Electricity Generation (bn KWH)

-1.5%

136

121

127

117

114

136

132

133

136

125

121

120

119

126

103

Key comments

Core industry growth YTD May’23 registered at 5.9% compared to 8.7% for the same period last 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

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

1 Economy & Industry 1 Economy & Industry

Automotive sector performance | Positive momentum remains

2022

2023

YTD CY2023 Growth

Two and three wheelers (mn Units) 1)

0.4%

Passenger Vehicles (Th Units) 2)

9.8%

1.6

1.5

1.4

1.5

1.6

1.8

1.7

1.8

1.7

1.8

1.9

2.1

1.9

1.7

1.3

425

351

381

353

406

373

358

349

390

338

379

367

401

379

413

376

390

323

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

Commercial Vehicles (Th Units)2)

2.4%

Agriculture Tractors (Th Units) 3)

8.6%

100

102

104

101

105

• 2W segment showing signs of

recovery in Q2CY’23

• PV segment growth continues on the

back of new launches, positive sentiments, and dampening semi conductors' shortages

• CV segment growth moderated due to BS VI Phase 2 and price increases

• Tractors segment showed reasonable

growth

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

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,

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights - Q2 and 6M 2023

Financial Highlights - Q2 and 6M 2023

ESG

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

2 Business Highlights - Q2 and 6M 2023

Q2 2023 | Strong domestic performance and earnings quality

Key Messages

Automotive Technologies growth continues despite subdued market conditions

Strong growth in Automotive Aftermarket on the back of network penetration and product expansion

Industrial business on the growth path, seeing signs of recovery

Expansion of Savli Plant and investments for Hosur Greenfield Plant continue

Strong domestic business helped sustain the quality of earnings despite slowdown in exports

Continued recognitions on our ESG journey, Schaeffler India’s water conservation initiatives well recognized

Entering second half of 2023 cautiously on the back of sluggish global demand outlook

Sales growth 4.6% vs Q2’22 8.0% vs Q1’23 18,291 mn INR

PAT margin 13.0% Q2’23 13.0% Q1’23 2,373 mn INR

EBIT 1) margin 16.1% Q2’23 16.0% Q1’23 2,941 mn INR

FCF 36.9% vs Q2’22 3422.6% vs Q1’23 1,092 mn INR

1) EBIT (before exceptional items)

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

2 Business Highlights - Q2 and 6M 2023

Q2 Business developments | Trajectory of wins continues

Automotive Technologies

Automotive Aftermarket

Industrial

Reliability and emission reduction

Increased market coverage

Precision and Efficiency

Business wins in PVs1) for Wheel Bearings

Business win for LV clutch systems for CV1) segment

Business wins in MHCVs1) for HD clutch systems

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

Introduced Schaeffler TruPower Two- Wheeler Batteries for superior performance and reliability

Business wins for FEAD/ Timing Kit, TRBs in the PV segment

Focus on penetration through range extension remains

New business win in the Industrial Automation segment for liner motion guides and ultra precision drives

Key business wins for bearings in the electric two-wheeler segment

Business wins for bearings and axel box housing for railway applications

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

2 Business Highlights - Q2 and 6M 2023

Automotive Aftermarket | Introduced Schaeffler TruPower Batteries for Two Wheelers

Schaeffler TruPower Two-Wheeler Batteries Introduced in June 2023

State of the art batteries, specially developed for two- wheeler applications

Leveraging superior VRLA (Valve Regulated Lead Acid) technology - represent a significant advancement in battery technology

Ensures trouble free running

Special Active Material for High Performance

Robust and Low Corrosive Terminals

Innovative Features

Imported AGM Separator for Spill-Proof & Vibration Resistance

Strong Container Design

High Purity Lead & Electrolyte for Low Self- Discharge Rate

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

2 Business Highlights - Q2 and 6M 2023

Industrial | Expansion of industrial production capacity at Savli

Additional capacities of over 10,000 sq.m. of production space, to the existing state of the art manufacturing plant in Savli

Manufacturing of spherical roller bearings, spherical rollers and expansion of heat treatment facilities

Enhanced production capacity will the Wind Energy, Heavy Industries and Railways sector

Commitment to customer-centricity, well-positioned to serve customer needs better

Expansion of manufacturing at Savli, Vadodara (Hall 2)

Investments for expansion

Heat Treatment

Grinding

Product Offerings

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights - Q2 and 6M 2023

Financial Highlights - Q2 and 6M 2023

ESG

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q2 and 6M 2023

Revenue from operations | Growth momentum continues

Total revenue

mn INR

15,675

16,936

2022

2023

Key aspects • YoY growth backed by strong domestic demand in Automotive Business

17,488

18,291

17,564

17,947

and signs of recovery in the Industrial Business

• Slowdown in exports owing to sluggish global demand

Growth

Q2’23 vs Q1’23

Q2’23 vs Q2’22

6M’23 vs 6M’22

-5.6% -5.6%

8.0%

QoQ Growth

YoY Growth

Revenue Bridge mn INR

8.0%

4.6%

Automotive Technologies

Automotive Aftermarket

Industrial

Exports & others 1)

2022

2023

Sales mix Q2 2023

Exports & Others 1)

1.6%

26.2%

16.7%

-1.5%

15%

10.3%

23.8%

-2.3%

-3.5%

15.4%

20.9%

-5.3%

3.0%

Automotive Technologies

41%

34%

Industrial

10%

Automotive Aftermarket

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

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q2 and 6M 2023

Earnings Quality | Remains resilient

EBIT1) mn INR

2022

2023

Key aspects

2,602

2,706

2,741

2,941

2,756

16.6%

16.0%

15.7%

16.1%

15.7%

2,913

16.2%

6 0 8 , 1

• YoY earnings quality remains strong on the back of volume gains and

input cost stability

• QoQ margins stable on the back of efficiency gains and input cost

stability, despite adverse revenue mix

-7.1% -7.1%

4.0% 4.0%

QoQ Growth

YoY Growth

EBIT Bridge1) mn INR

8.7%

7.3%

6M 2023 : 5,647, 16.0% 6M 2022 : 5,343, 16.1%

%Margin

2022

2023

PAT mn INR

2,194

2,071

2,373

2,258

2,154

2022

2023

2,310

6 0 8 , 1

15.7%

16.1%

1) EBIT (before exceptional items) - interest income (net) at 239.5 mn INR in Q2‘23 (116.5 mn INR Q2’22) ;

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

QoQ Growth

-5.0%

YoY Growth

5.9%

8.2%

5.1%

6M 2023 : 4,567, 13.0% 6M 2022 : 4,329, 13.1%

3 Financial Highlights - Q2 and 6M 2023

Working capital, Capex | Focus remains

Working Capital mn INR

12,955

12,526

11,413

13,283

10,101

2022

2023

Key aspects

• Working Capital - optimal levels continue to be maintained

9,869

• Capex framework – focus remains, expansion at Savli and Hosur

manufacturing facilities

• Free cash flow generation - improved on the back of performance and

inventory management

3M’22

3M’23

6M’22

6M’23

9M’22

19.9%

18.9%

20.1%

19.2%

19.9%

% to sales

Capex mn INR

1,187

751

1,407

1,347

1,005

12M’22

17.0%

1,827

2022

2023

Free Cash Flow mn INR

2022

2023

2,454

% to sales

3M’22

3M’23

6M’22

6M’23

9M’22

4.8%

7.0%

6.5%

7.2%

6.2%

12M’22

7.3%

797

1,092

724

(208)

114.9%

YoY Change

36.9%

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q2 and 6M 2023

Performance Indicators

Revenue

Revenue growth (YoY) Revenue growth (QoQ) EBITDA

EBITDA Margin

EBIT1)

EBIT Margin

EBT

EBT Margin

PAT

PAT Margin

Capex2)

FCF

Unit

mn INR

% % mn INR

mn INR

Q2 2023

18,291

Q1 2023

16,936

Q2 2022

17,488

6M 2023

35,228

4.6% 8.0% 3,480

19.0%

2,941

16.1%

3,180

17.4%

2,373

13.0%

1,347

1,092

8.0% -5.6% 3,230

19.1%

2,706

16.0%

2,941

17.4%

2,194

13.0%

1,187

41.8% 11.6% 3,254

18.6%

2,741

15.7%

2,857

16.3%

2,258

12.9%

1,407

797

6.2% - 6,710

19.0%

5,647

16.0%

6,122

17.4%

4,567

13.0%

2,534

1,123

6M 2022

12M 2022

33,163

30.1% - 6,360

19.2%

68,674

23.5%

13,076

19.0%

5,343

11,012

Focused efforts and our balanced business mix helped to deliver resilient 11,770 performance

16.0%

5,629

16.1%

17.0%

4,329

13.1%

2,158

590

17.1%

8,792

12.8%

4,990

3,768

1) EBIT (before exceptional items) - interest income (net) at 239.5 mn INR in Q2’23; 6M 2023 interest income (net) at 475.1 mn INR 6M 2022 : 286.4 mn INR 2) Capex includes CWIP

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

Agenda

1 2 3 4

Economy & Industry

Business Highlights - Q2 and 6M 2023

Financial Highlights - Q2 and 6M 2023

ESG

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

4 ESG

Sustainability Roadmap |Long-term commitment with focus on short term goals

CY19 Base Year

CY30 Climate-neutral production

CY40 Climate-neutral supply chain

CY70 India’s net zero target

Energy efficiency

4 GWH annual efficiency gain until 2024

Renewable energy

100% purchased power from renewable sources until 2024

Climate-neutral supply chain

Employee safety

CO2 reduction in the supply chain until 2040

10% average annual reduction in accident rate (LTIR) by 2025

Sustainable supplies

90% of production material to be purchased with sustainability self-assessments by 2022

Women in leadership

8% female employees across by 2025

Freshwater supply

Climate-neutral production

20% reduction in freshwater supply until 2030

All Schaeffler production locations until 2030

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

4 ESG

CSR | Three consecutive awards for Project Jal Sahara

Category Won by Schaeffler India: Rural Development and Infrastructure (Large)

Award Won by Schaeffler India: The CSR Journal Excellence Award

Award Won by Schaeffler India: CSR & Sustainability Awards 2022 - Excellence in Water Conservation

Special Commendation Award in Corporate Social Responsibility for 2022 by CSR Journal

Excellence in Water Conservation category award by ASSOCHAM

Schaeffler bagged the Second runner up award in Excellence in Water Conservation Category.

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

4 ESG

In Summary

Strong performance for the quarter across all domestic businesses

Exports performance moderated owing to global demand conditions

Volume and efficiency gains helped deliver strong earnings performance

Investments for capacity expansion - at Savli and Hosur plants

Cautiously optimistic of the second half of 2023, with signs of recovery in key businesses

Focusing on our growth trajectory and long-term value creation for our stakeholders

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

4 ESG

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

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

PUBLIC

4 ESG

Thank you

July 27, 2023

Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation

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Schaeffler India Limited has informed the Exchange about Investor Presentation

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