CROMPTON

Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai - 400 070.India T: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in CIN: L31900MH2015PLC262254 Date: May 21, 2023 To, To, BSE Limited (“BSE”), National Stock Exchange of India Limited Corporate Relationship Department, (“NSE”), 2nd Floor, New Trading Ring, “Exchange Plaza”, 5th Floor, P.J. Towers, Dalal Street, Plot No. C/1, G Block, Mumbai – 400 001 Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 BSE Scrip Code: 539876 NSE Symbol: CROMPTON ISIN: INE299U01018 ISIN: INE299U01018 Our Reference: 31/2023-24 Our Reference: 31/2023-24 Dear Sir/ Madam, Sub: Updated Highlights of Q-4 of FY 2022-23 along with financial statements for the quarter and year ended March 31, 2023. This is in furtherance of our earlier stock exchange intimations dated May 19, 2023 and May 20, 2023 regarding the captioned subject, please find enclosed herewith the updated highlights of Q-4 of FY 2022-23 along with audited financial statements for the quarter and year ended March 31, 2023 with so e additional information. Plemase take the same on your record and oblige. Thanking You. Yours Sincerely For Crompton Greaves Consumer Electricals Limited Rashmi Khandelwal Company Secretary & Compliance Officer ACS 28839 Encl: as above Disclaimer This presentation does not constitute an offer from Crompton Greaves Consumer Electricals Ltd. or any of its affiliates (“Crompton”) to any party and the information contained herein will not form the basis of any contract. Neither Crompton nor any of their respective affiliates, shareholders, directors, employees, agents or representatives makes any warranty or representation as to the accuracy or completeness of the information contained herein (including statements of opinion and expectation, whether communicated in written, oral, visual or electronic form) or as to the reasonableness of any assumptions contained herein. In particular, no representation or warranty is given as to the achievement or reasonableness of, any information. Consequently, neither Crompton nor any of their respective affiliates, shareholders, directors, employees, agents or advisors shall be liable for any loss or damage (direct or indirect) suffered as a result of reliance upon any statements contained in, or any omission from this presentation and expressly disclaim any and all liability relating to or resulting from the use of this presentation. This presentation should not be distributed or reproduced, without the express consent of Crompton. Nothing contained in this presentation should be relied upon as a promise or representation as to the future. The information contained herein was prepared expressly for use herein and is based on certain assumptions and management's analysis of information available at the time this presentation was prepared. There is no representation, warranty or other assurance in this regard. 1 Q4 Highlights Index 2 Financial Performance 3 Segment Performance Q4 Highlights – Strong performance in tough market environment Consolidated Q4 revenue grew by 16% and FY 23 revenue grew by 27% Crompton Board announced a dividend of Rs. 3 per share v/s Rs. 2.5 per share in previous year resulting in 40% pay-out ratio 1 ECD segment bounced back strongly growing by 8% in Q4 and delivered best in industry performance 2 Lighting segment declined by 8% in Q4, but margins have improved consistently despite cost headwinds 3 Fans ▪ Took calibrated approach to manage Fans BEE transition; Q3 & Q4 combined delivered better results compared to competition ▪ Continued focus on premiumisation wherein premium ceiling fan category grew strongly by ~24% in Q4; BLDC category grew 2.5x in Q4 thereby establishing Crompton as Top 2 player in the segment 4 Pumps ▪ Roll out of new brand architecture and pricing actions resulted in strong growth in Pumps business 5 Appliances ▪ Consistently growing every quarter with Q4 growth of ~42% 6 Built in Kitchen ▪ Clocked revenue of Rs. 13 Cr. in Q4 with exit monthly run rate of ~Rs. 5 Cr. and FY 23 revenue stood at Rs. 26 Cr. Appliances ▪ Given the investment phase, FY 23 EBITDA was Rs. -24 Cr. ▪ Channel development progressing as per plan: 55 brand stores (Signature Studios + Exclusives Stores) opened across 12 cities 7 Channel ▪ Trade channel showed recovery across key markets; Alternate channels delivered growth of ~40% in Q4 with increased revenue contribution; Ecommerce channel consistently delivered better results with Q4 revenue growing by ~37% 8 Market Share ▪ Improved share in Premium Fans and Water Heater category 9 BEE Transition ▪ Focused on ramping up manufacturing capacity both in-house & at vendor locations; plans on reducing the BEE cost increase are progressing well Q4 Highlights Butterfly With Q4 revenue of Rs 187 Cr. FY 23 revenue grew by 10% with highest ever profits of Rs 52 Cr. Continue to make progress on priority areas: Increasing 1 Retail continues to be growth driver with 19% growth in Q4 along with healthy improvement in margins share of retail 2 New Product 25 new product launches in Q4 across categories helping to drive the retail growth 3 Market Share Held market share across categories amidst tough environment Cost excellence 4 Implementation of multiple cost optimisation initiatives across direct & indirect costs resulted in Rs 20 Cr. savings in FY 23 program Building a safe 5 Focus on building a safe working environment and compliances has resulted in 0 reportable incidents in Q4 working place Strengthening 6 Augmented leadership team across manufacturing, innovation, sales & marketing and HR Capability Multiple marketing activities in Q4 to strengthen the brand awareness Digital build-up for summer campaigns in Q4 Influencer videos to drive discoverability #SwitchToSave PR meet to launch star rated fans - 30+ media and publication houses attended the event Major media and publication 30+ houses at the conference Coverages across 70+ publications New products launched in Q4 with strong product development in pipeline Mixer Grinders: Ceiling Fans: Fans ► Roverr – Smart 5 star-rated underlight Fan Appl. ► Qube 500W – Range extension in 500W category with motor Vent-X technology & overload protector featuring ActivBLDC technology, Anti-dust property and fluidic telescopic design Air Coolers: ► Drift Air – Sturdy Exhaust Fan with metal body ► Cool Breeze – Dessert cooler with modern and blades aesthetics. Comes with everlast pump which works even with hard water and have honeycomb pads and 4-way air direction. Lamps: Lights ► Optimus Window Cooler – Extension to Optimus ► Backup Bulb 15W – Higher wattage introduction series with highest air delivery and wider-angle with improved battery and product life throw and comes with everlast pump ► Night Buddy – Indirect Night Lamp Light with USB Turbo Charging Residential: ► Rovello – 6W rechargeable table Lamp with 360 Pumps ► Master Dura – Addition in Mini series with anti- jam winding & CED coating degrees twisting and 3 step dimming - Focus, Relax and Night modes ► Ultima Z – Addition in Agro economy segment Crompton Standalone Financial Performance Revenue (in Rs. cr.) EBITDA (in Rs. cr.) PAT (in Rs. cr.) 5,809 5,373 761 671 593 476 1,604 1,532 222 196 182 132 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 FY 23 includes finance costs of 62 Cr. related to Butterfly acquisition ▪ Strong demand pickup in ECD from Feb led by Pumps and Appliances ▪ ECD margins driven by margin and mix improvement in Pumps and Appliances ▪ Lighting margins improved significantly v/s Q4 LY ▪ Stepped up investments in A&P (3.9% spend in Q4 v/s 2.0% LY) ▪ EBITDA for the quarter stood at 12.2% and PAT stood at Rs. 476 Cr. Crompton Standalone Segment Performance Segment Revenue Q4 FY23 Q4 FY22 Y-o-Y FY23 FY 22 Y-o-Y ECD 1,326 1,231 8% 4,755 4,311 10% Lighting 278 301 -8% 1,054 1,062 -1% Total 1,604 1,532 5% 5,809 5,373 8% Segment EBIT Q4 FY23 Q4 FY22 Y-o-Y FY23 FY 22 Y-o-Y ECD 218 228 -4% 789 827 -5% ECD % 16.4% 18.5% 16.6% 19.2% Lighting 30 34 -11% 100 116 -14% Lighting% 10.9% 11.4% 9.5% 10.9% ▪ Fans – Q4 Performance was aided by growth in ceiling fan premium segment (+24%) and TPW (+16%) ▪ Pumps - Growth was led by residential category which grew by 17% in Q4 ▪ Appliances - Growth across categories; Q4 Geysers and Air Coolers combined grew by ~34%, SDA by ~60% ▪ Lighting - B2C LED and B2B trade faced pricing pressures Butterfly Standalone Financial Performance | Strategic channel restructuring improving structural EBITDA to 8-9% while continuing growth spends Revenue (in Rs. cr.) EBITDA (in Rs. cr.) PAT (in Rs. cr.) 1,057 960 190 187 97 52 56 8 16 -17 -19 2 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 Q4’22 includes one-off adjustments of 22 Cr. ▪ Q4 revenue declined by 2% v/s LY and FY 23 recorded growth of 10% v/s LY ▪ New product launches in Q4 contributed to 15% revenue share ▪ Significant improvement in margins and profitability during the year resulting in FY 23 EBITDA of 9.1% and PAT of 4.9% Q4 and FY 23 Consolidated Profit & Loss Statement Particulars Q4 FY23 Q4 FY22 Y-o-Y FY 23 FY 22 Y-o-Y Net Sales 1,791 1,548 16% 6,870 5,394 27% Less: Material Cost 1,226 1,086 13% 4,680 3,702 26% Material Margin 565 462 22% 2,189 1,692 29% as a % of Net Sales 31.5% 29.9% 31.9% 31.4% EBIDTA 211 229 -8% 770 769 0% as a % of Net Sales 11.8% 14.8% 11.2% 14.3% Less: Depreciation & Amortization 30 14 110% 116 42 174% EBIT 181 214 -16% 655 727 -10% as a % of Net Sales 10.1% 13.8% 9.5% 13.5% Less: Exceptional Item 0 13 -100% 0 13 -100% Less: Finance Cost 27 11 160% 109 35 209% Add: Other Income 17 22 -24% 67 73 -8% Profit Before Tax 170 213 -20% 612 752 -19% as a % of Net Sales 9.5% 13.8% 8.9% 13.9% Tax Expenses 39 36 7% 136 173 -22% Net Profit 132 177 -25% 476 578 -18% as a % of Net Sales 7.3% 11.4% 6.9% 10.7% EPS 2.1 2.8 7.3 9.2 Key focus areas Fans – Expanding range in star rated induction and BLDC Fans along with strengthening the manufacturing capability; Work in 1 progress to further reduce the BEE cost increase Pumps – Successfully completed brand architecture definition for Mini Pumps, ATL and BTL spends planned to increase the 2 awareness; Plan to define the brand architecture to other categories 3 Lighting - Launch of new categories in B2C backed by in-store visibility and range expansion in B2B 4 Appliances - Expand the SDA category through product and channel development supported by ATL activities 5 Butterfly – Continue to focus on retail channel; Alternate channel growth to be augmented by differentiated product range Crompton Key Milestones and Achievements for the year 1 2 3 4 Butterfly Acquisition Launch of Built-in Successful BEE Stepped up Brand and Integration kitchen appliances Transition Investments ▪ First full year of Butterfly ▪ Launch of comprehensive ▪ Smooth transition of ▪ Significantly step up in operations range of chimneys, hobs, biggest business to new investments for built-in ovens, built-in BEE norms with ~100% strengthening brand ▪ Strategic restructuring has microwaves and readiness on design and awareness resulted in growth in retail dishwashers approvals channel and delivering the ▪ Wide-ranging activities highest ever profits in FY ▪ Focus on channel ▪ Calibrated approach on across touchpoints - digital 23 of Rs. 52 Cr. development and building inventory levels, & TV campaigns, defining strong back-end production with focus on new brand architecture, in- ▪ Legal and operational processes creating sustainable store transformation, integration activities business structured digital underway ▪ As in investment phase, marketing, influencers continue to spend towards connect etc. distribution and marketing Crompton Key Awards & Accolades during the year IDMA (Indian Digital Crompton won the coveted Crompton won two Crompton was awarded Crompton is amongst the Media Awards) awarded title of 'India’s Best exchange4media Prime under “Dun & Bradstreet only ten companies to be Crompton’s search Managed Companies’ for Time awards India’s Top 500 recognised under the campaign on digital for the year 2022’ Companies 2022” “Next Leaders” category • Crompton SilentPro - the ‘Best SEO for by the Institutional ‘Play to Win’ campaign website/universal search Investor Advisory for the Best Use of ranking and SEM Services (IiAS) Sports Channel Strategy’ • Creativity award in the Consumer Durables & Electronics sector for Ceiling Lights - ‘Mood Jaisa, Lighting Waisa’ campaign Resilience and Adoptability through ESG Prioritising Environment Impact Prioritising Social Responsibility Prioritising Strong Governance Practices ▪ Innovation focuses on producing energy- ▪ CSR initiatives around entrepreneurship and ▪ Included ESG-related risks as a part of efficient products, reducing emissions and skill development, water conservation, overall risk assessment optimising natural resources community care and employee engagement ▪ KAVACH initiative implemented for ▪ Policies, mechanisms, an frameworks in place ▪ Carbon-neutral measures to mitigate comprehensive EHS strategy to ensure compliance with ethical, legal, and greenhouse gas emissions ▪ Upholding globally recognized human rights moral standards principle ▪ Reduced energy consumption by 57% ▪ 22.22% of total directors are women ▪ 1,000+ lives impacted through employee engagement; 1300+ Youth trained for skill- ▪ GHG Scope 1 - Emission reduced by 49% based jobs ▪ Zero cases of cyber security breaches ▪ 9,000+ lives impacted though water ▪ Achieved 100% EPR target of recycling plastic conservation project; 67 lakhs liters water ▪ 100% compliance with EMS 14001 & ISO conserved in drought hit villages 45001 implementation ▪ Zero incidents of child labor, forced labor involuntary labor Registered Office: Crompton Greaves Consumer Electricals Limited, Equinox Business Park, 1st Floor, Tower 3, LBS Marg, Kurla (W), Mumbai - 400070, Maharashtra, India +91 22 6167 8499 For any query, please write us at: crompton.investorrelations@crompton.co.in Connect with us on www.crompton.co.in Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West), Mumbai - 400 070.India T: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in CIN: L31900MH2015PLC262254 CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (₹ crore) As at As at Particulars 31-03-2023 31-03-2022 Audited Audited A ASSETS 1 Non-current Assets: (a) Property, plant and equipment 408.02 404.53 (b) Capital work-in-progress 5 .46 13.00 (c) Right to use assets 75.95 71.10 (d) Goodwill 1,285.46 1 ,285.46 (e) Other intangible assets 1,480.51 1 ,512.38 (f) Intangible assets under development 21.05 - (g) Financial assets (i) Investments 0 .35 0.34 (ii) Trade receivables 15.49 21.83 (iii) Others 18.73 15.39 (h) Non-current tax assets 9 .36 13.83 (i) Other non-current assets 75.76 67.31 Sub-total - Non-current Assets 3,396.14 3 ,405.17 2 Current Assets (a) Inventories 743.85 721.04 (b) Financial assets (i) Investments 547.83 623.83 (ii) Trade receivables 670.56 593.60 (iii) Cash and cash equivalents 76.84 171.62 (iv) Bank balances other than (iii) above 32.64 743.57 (v) Loans 0 .66 1.23 (vi) Other financial assets 18.97 14.16 (c) Current tax asset 19.81 23.81 (d) Other current assets 147.13 150.56 Sub-total - Current Assets 2,258.29 3 ,043.42 Total - Assets 5,654.43 6 ,448.59 B EQUITY AND LIABILITIES 1 Equity (a) Equity share capital 127.22 126.68 (b) Other equity 2,532.77 2 ,326.28 (c) Non-controlling interests 447.71 782.45 Sub-total - Equity 3,107.70 3 ,235.41 2 Liabilities Non-current Liabilities: (a) Financial liabilities (i) Borrowings 597.18 4.56 (ii) Lease liabilities 55.93 44.14 (iii) Trade payables (a) Total outstanding dues of micro enterprises and small enterprises - - (b) Total outstanding dues of creditors other than micro enterprises and small enterprises 13.19 8.07 (b) Deferred tax liabilities (net) 12.27 39.43 (c) Provisions 131.23 109.55 Sub-total - Non-current Liabilities 809.80 205.75 Current Liabilities (a) Financial liabilities (i) Borrowings 325.00 1 ,602.95 (ii) Lease liabilities 27.00 34.08 (iii) Trade payables (a) Total outstanding dues of micro enterprises and small enterprises 245.18 120.18 (b) Total outstanding dues of creditors other than micro enterprises and small enterprises 790.20 889.53 (iv) Other financial liabilities 73.50 44.84 (b) Other current liabilities 98.37 133.61 (c) Provisions 168.48 182.24 (d) Current tax liabilities 9 .20 - Sub-total - Current Liabilities 1,736.93 3 ,007.43 Total Liabilities 2,546.73 3 ,213.18 Total - Equity and Liabilities 5,654.43 6 ,448.59