SCHAEFFLERNSE27 October 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,

27/10/2023

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 ended September 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 – Q3 and 9M 2023 Standalone Financial Results

October 27, 2023

PUBLIC

Agenda

1 2 3

Economy & Industry

Business Highlights - Q3 and 9M 2023

Financial Highlights - Q3 and 9M 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

1 Economy & Industry 2 Economy & Market

Economy | Indicators remains buoyant

GDP 1) 3)

13.1

4.0

6.2

6.1

4.5

7.8

IIP 1) 3)

12.8

10.3

4.1

4.4

5.7

1.8

1.7

2.4

Q2 Prov

Jul

Aug Prov

2022

2023

2022

2023

• Q2 GDP at growth at 7.8%, on growth inflation

path supported moderating driven by domestic demand

• IIP growth continues for the year, backed

by stable economic activities

• Growth PVs and CVs, up 6.6% and 2.6% respectively when compared to the same quarter last year ; de-growth in tractors of 10.1%

• CPI

inflation continued to moderate, largely contributed by decline in food and fuel inflation

Automotive Production 2) 4)

33.7

27.2

18.6

13.6

-2.8 Q1

2022

3.2

2023

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

CPI 1)

6.3

7.3

7.0

6.1

6.2

6.4

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

2022

PUBLIC

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

1 Economy & Industry 1 Economy & Industry

Core sector performance | Delivering strong growth

2022

2023

YTD CY2023 Growth

Cement Production (mn T)

8.8%

Steel Production (mn T)

14.1%

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

Coal Production (mn T)

109

11.5%

Electricity Generation (bn KWH)

3.1%

136

121

127

117

114

136

137

138

133

135

125

139

136

121

120

119

126

103

Key comments

Core industry growth YTD Aug’23 registered at 7.5% compared to 8.2% 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

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

1 Economy & Industry 1 Economy & Industry

Automotive sector performance | Momentum continues

2022

2023

YTD CY2023 Growth

Two and three wheelers (mn Units) 1) 2.1

1.9

2.0

2.1

1.6

1.5

1.4

1.5

1.6

1.8

1.7

1.8

1.7

1.8

1.7

0.1%

Passenger Vehicles (Th Units) 2)

8.6%

1.9

1.7

1.3

425

351

353

381

373

406

358

349

338

442

390

379

367

401

379

420

413

419

376

390

323

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

Commercial Vehicles (Th Units)2)

5.0%

Agriculture Tractors (Th Units) 3)

1.3%

100

102

104

101

105

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

• Festive season ramping up demand

for the 2W sector

• PV segment growth continues on the back of positive sentiments, new launches and stable commodity prices

• Demand trend of the CV segment remains steady, led by strong push for logistics and infrastructure sector

• Tractors segment remained weak, owing to a weak and irregular monsoon

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,

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

Agenda

1 2 3

Economy & Industry

Business Highlights - Q3 and 9M 2023

Financial Highlights - Q3 and 9M 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

2 Business Highlights - Q3 and 9M 2023

Q3 2023 | Sustained domestic performance and earnings quality

Key Messages

Automotive Technologies growth on the back of favorable demand and continued trajectory of business wins

Recovery in key businesses helped industrial business to continue its growth trajectory

Sustained quality of earnings and strong performance on operating metrics

Continued slowdown in global demand – countermeasures to mitigate adverse impact on performance

focus on

Sales growth 5.2% vs Q3’22 1.0% vs Q2’23 18,483 mn INR

PAT margin 12.7% Q3’23 13.0% Q2’23 2,350 mn INR

EBIT 1) margin 15.9% Q3’23 16.1% Q2’23 2,933 mn INR

FCF 137.7% vs Q3’22 57.6% vs Q2’23 1,721 mn INR

1) EBIT (before exceptional items)

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

2 Business Highlights - Q3 and 9M 2023

Q3 Business developments | Wins in hybrids, renewable energy

Automotive Technologies

Automotive Aftermarket

Industrial

Reliability and emission reduction

Increased market coverage

Precision and Efficiency

Business wins in PVs1) for gear shafts for hybrid vehicles

Business win for HD clutches for MHCV1) segment

Continued business wins for Gen-3 wheel bearings in PV1) segment

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

Business wins for recent new launches in batteries, wipers

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

Continued focus on network penetration and range extension

Key business win in the renewable energy segment for tapper roller bearings

New business wins for bearings in the off-road segment

Business wins for bearings continues for railway applications

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

Agenda

1 2 3

Economy & Industry

Business Highlights - Q3 and 9M 2023

Financial Highlights - Q3 and 9M 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q3 and 9M 2023

Revenue from operations | Domestic business growth stable

Total revenue

mn INR

15,675

16,936

-5.6% -5.6%

8.0%

QoQ Growth

YoY Growth

Revenue Bridge mn INR

2022

2023

Key aspects • Double digit YoY growth in domestic business overall

17,488

18,291

17,564

18,483

17,947

• Slowdown in exports continues owing to sluggish global demand

Growth

Q3’23 vs Q2’23

Q3’23 vs Q3’22

9M’23 vs 9M’22

8.0%

4.6%

1.0%

5.2%

Automotive Technologies

Automotive Aftermarket

Industrial

Exports & others 1)

2022

2023

Sales mix Q3 2023

Exports & Others 1)

3.5%

-7.8%

7.9%

-16.0%

12%

7.8%

11.4%

13.0%

-21.2%

12.5%

16.9%

1.2%

-5.9%

Automotive Technologies

42%

37%

Industrial

Automotive Aftermarket

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

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q3 and 9M 2023

Earnings Quality | Sustained performance

EBIT1) mn INR

2022

2023

Key aspects

2,602

2,706

2,741

2,941

2,756

2,933

2,913

6 0 8 , 1

• YoY margins sustained due to volume gains and continued focus on

operational efficiencies

16.6%

16.0%

15.7%

16.1%

15.7%

15.9%

16.2%

• QoQ margins stable on the back of 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%

-0.3%

6.4%

9M 2023 : 8,580, 16.0% 9M 2022 : 8,099, 16.0%

%Margin

2022

2023

PAT mn INR

2,194

2,071

2,373

2,258

2,350

2,310

2,154

6 0 8 , 1

2022

2023

16.0

15.9%

1) EBIT (before exceptional items) - interest income (net) at 223.8 mn INR in Q3‘23 (139.6 mn INR Q3’22)

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

QoQ Growth

-5.0%

YoY Growth

5.9%

8.2%

5.1%

-1.0%

9.1%

9M 2023 : 6,917, 12.9% 9M 2022 : 6,482, 12.8%

3 Financial Highlights - Q3 and 9M 2023

Working capital, Capex | Focused and effective management

Working Capital mn INR

2022

2023

Key aspects

12,955

13,283

12,526

12,932

13,076

11,413

11,451

3M’22

3M’23

6M’22

6M’23

9M’22

9M’23

12M’22

19.9%

18.9%

20.1%

19.2%

19.9%

18.6%

17.0%

• Working Capital - optimal levels continue to be maintained

• Capex in-line with strategic framework

• Free cash flow generation – continued focus on business performance

and better working capital management

2022

2023

Free Cash Flow mn INR

1,827

1,571

2022

2023

% to sales

Capex mn INR

1,187

751

1,407

1,347

1,005

% to sales

3M’22

3M’23

6M’22

6M’23

9M’22

9M’23

12M’22

4.8%

7.0%

6.5%

7.2%

6.2%

7.6%

7.3%

2,454

1,721

797

1,092

724

36.9%

137.7%

(208)

114.9%

YoY Change

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q3 and 9M 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

Q3 2023

18,483

Q2 2023

18,291

Q3 2022

17,564

5.2% 1.0% 3,490

18.9%

2,933

15.9%

3,157

17.1%

2,350

12.7%

1,571

1,721

4.6% 8.0% 3,480

19.0%

2,941

16.1%

3,180

17.4%

2,373

13.0%

1,347

1,092

18.1% 0.4% 3,273

18.6%

2,756

15.7%

2,896

16.5%

2,154

12.3%

1,005

724

9M 2023

9M 2022

12M 2022

53,711

5.9% - 10,200

19.0%

8,580

16.0%

9,279

17.3%

6,917

12.9%

4,105

2,844

50,728

25.6% - 9,634

19.0%

68,674

23.5%

13,076

19.0%

8,099

11,012

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

16.0%

8,525

16.0%

16.8%

6,482

12.8%

3,163

1,314

17.1%

8,792

12.8%

4,990

3,768

1) EBIT (before exceptional items) - interest income (net) at 223.8 mn INR in Q3‘23 (139.6 mn INR Q3’22); 9M 2023 interest income (net) at 698.9 mn INR, 9M 2022 : 426.0 mn INR 2) Capex includes CWIP

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

PUBLIC

3 Financial Highlights - Q3 and 9M 2023

In Summary

Performance for the quarter supported by continued growth in domestic business

Quality of earnings sustained, strong performance on operating metrics

Continued focus on capacity investments and localization to be future ready

Focus on countermeasures and operational efficiencies continues

Committed to achieve long- term value and sustainable growth

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

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3 Financial Highlights - Q3 and 9M 2023

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

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

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3 Financial Highlights - Q3 and 9M 2023

Thank you

Oct 27, 2023

Schaeffler India Limited | Q3 and 9M 2023 Investor Presentation

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Schaeffler India Limited has informed the Exchange about Investor Presentation

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