KAYNES

January 30, 2024 The Secretary The Secretary National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, Plot no. C/1, G Block, Corporate Relationship Dept., Bandra-Kurla Complex, 14th floor, P. J. Tower, Bandra (E), Dalal Street, Fort Mumbai - 400 051 Mumbai - 400 001 Stock Code – KAYNES Stock Code – 543664 Dear Sir/Madam, SUB: Investors/ Earnings Presentation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. With reference to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Investors/ Earnings Presentation for the Quarter ended December 31, 2023. The Company will use this presentation for any meeting scheduled with analysts or institutional investors up to March 31, 2024. The above information will also be available on the website of the Company at www.kaynestechnology.co.in. Request to kindly take this intimation on record. Thanking You, Yours faithfully, For Kaynes Technology India Limited. S M Adithya Jain Company Secretary and Compliance Officer Membership No. A49042 KAYNES TECHNOLOGY INDIA LIMITED (Formerly Kaynes Technology India Private Limited) CIN: L29128KA2008PLC045825 www.kaynestechnology.co.in email ID: kaynestechcs@kaynestechnology.net H.O & Regd Off: 23-25, Belagola, Food Industrial Estate Metagalli PO, Mysore 570016 India Telephone No: +91 8212582595 Kaynes Technology India Limited Earnings Presentation | January 2024 Disclaimer This presentation has been prepared by Kaynes Technology India Limited (“Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. Failure to comply with this directive may result in a violation of the applicable law in certain jurisdictions. By reviewing this presentation, you agree to be bound by the restrictions contained herein, and to maintain absolute confidentiality, regarding the information disclosed in these materials. This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, including in India, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment, therefore. This presentation contains statements that constitute forward looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward- looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward-looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. This presentation may contain certain currency exchange rates and the same have been provided only for the convenience of readers. 2 Q3FY24 Results Snapshot (Consolidated) ₹ 37,890 mn ₹ 5,093 mn ₹ 699 mn 13.7% Order Book Revenue EBITDA EBITDA Margin ₹ 26,482 mn in FY23 76% YoY 70% YoY - 52 bps YoY ₹ 452 mn 8.9 % ₹ 24,599 mn ₹ 2,449 mn Profit After Tax PAT Margin Networth Net Debt 98% YoY +96 bps YoY ₹ 9,577 mn in FY23 ₹ 473 mn in FY23 16.8% 18.6% 117 Days 0.1x ROCE ROE Net WC Days Net Debt to Equity 24.2% in FY23 24.9% in FY23 99 days in FY23 0.0x in FY23 ROCE, ROE and Net debt are adjusted for unutilized IPO &QIP proceeds. ROE, ROCE and NWC numbers are annualized 4 Working capital is computed based on average outstanding for current and previous fiscal year divided by current year’s sales Consistent quarterly financial performance Revenue (₹ Mn) EBITDA (₹ Mn) 5,093 699 594 3,646 3,608 488 2,891 2,972 412 403 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 16.3% 452 413 14.3% 13.5% 13.5% 13.7% 323 246 229 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 5 Diversified Revenue Mix Revenue across verticals 9MFY24 9MFY23 7% 14% 11% Automotive 31% Automotive Industrial incl EV 3% Industrial incl EV 11% 38% 2% Aerospace, Outerspace & Aerospace, Outerspace & Strategic electronics Strategic electronics 6% Medical Medical 2% Railways Railways IoT / IT, Cons and Others IoT / IT, Cons and Others 44% 28% Revenue across segments 9MFY24 9MFY23 27% OEM – Turnkey – PCBA 39% OEM – Turnkey – PCBA OEM – Turnkey – Box Build OEM – Turnkey – Box Build ODM ODM 4% 56% Prod. Eng. and IoT solutions Prod. Eng. and IoT solutions 5% 64% 2% 3% 6 Consistent quarterly financial performance Gross Block (₹ Mn) Asset Turnover ratio (x)1 2,816 6.3 5.5 1,609 9MFY23 9MFY24 9MFY23 9MFY24 Debt/Equity (x) Networth (₹ Mn) 24,599 0.3 9,164 0.2 9MFY23 9MFY24 9MFY23 9MFY24 7 1 – Annualized: The above data is based on unaudited financial statements Consistent quarterly financial performance Net Working Capital Days Inventory Days 135 117 120 115 9MFY23 9MFY24 9MFY23 9MFY24 Receivable Days Payable Days 91 72 65 68 9MFY23 9MFY24 9MFY23 9MFY24 Net working capital is calculated as average inventory days plus average receivable days less average payable days 8 Above data is annualized; The above data is based on unaudited financial statements Profit & Loss Statement (Consolidated) Particulars (₹ Mn) Q3 FY24 Q3 FY23 Y-o-Y 9MFY24 9MFY23 Y-o-Y Revenue from operations 5,093 2,891 76% 11,673 7,615 53% Raw material cost 3,854 2,029 90% 8,513 5,348 59% Employee expenses 249 191 30% 708 554 28% Other expenses 292 260 12% 863 624 38% EBITDA 699 412 70% 1,589 1,090 46% EBITDA margin (%) 13.7% 14.2% -52 bps 13.6% 14.3% -69bps Depreciation and amortization expense 60 46 30% 178 139 28% Other income 94 26 258% 265 40 555% Finance cost 148 92 61% 379 268 41% Profit before tax 585 300 95% 1,298 723 79% Total tax expenses 133 71 87% 276 184 50% Net profit after tax 452 229 98% 1,022 539 89% Net profit margin (%) 8.9% 7.9% 96 bps 8.8% 7.1% 167bps 9 Company Overview Over 3 decades of experience in providing conceptual design, process engineering, integrated manufacturing and life-cycle support to OEMs Leading integrated and IoT enabled solutions provider, having capabilities across the entire spectrum of ESDM1,2 Caters to multiple industry verticals - automotive, aerospace and defense, industrial, railways, medical and IT / IoT. Has served 350+ customers in 26 countries including marquee MNCs3 Design led manufacturer - ODM solutions in the fields of smart devices, IoT solutions, brushless drive technology and Gallium Nitride technology 9 Advanced manufacturing facilities to undertake high mix and high value products with variable or flexible volumes Strong Financials – TTM Revenue/EBITDA of Rs15,319 mn/Rs 2,183 mn and Order Inflow per month of Rs2,788 mn during Q3FY24 1 – Electronic System & Design Manufacturer; 2- As per F&S report; 3 – As of FY23 11 Leading ESDM player with end-to-end Design & Engineering capabilities… Service offering across entire customer value chain Design Industrialization Manufacturing Product End-of-life services services services maintenance services services Prototype OEM Concept to Design manufacturing manufacturing Supply chain design Repair & refurbish Realization Product Development Value stream mapping Face lifts Spare part handling Turnkey DFM / DFA - analysis electronic Box-building Value engineering / Quality assurance manufacturing Material obsolescence Value analysis Rapid prototyping Weak point analysis Distribution services Product maintenance Parts Test development PCB development assembly Regulatory and services Ramp up planning Order fulfilment LTB - services Compliance Bluetooth Modules Smart Lighting Smart Meters Wireless Gateways Streetlight controller ODM BLDC Motor controllers GaN chargers Biometric add-ons Industrial Sensors ECUs for steering control 12 … Enabled with IoT solutions End-to-end connected asset platform, including business applications, managed cloud service, and ODM Device solution Capture Cloud Connect Control KPTR s p p P A s I - s m n s o e e KPTR N s n t s y d n o i s u S w e N / Gateway & n a P I : k r i t a c i l p p B t n e i l C y c a Devices o w Connectivity Management A s – g e t e N Integration e c i L v r e S Kemsys Platform Product: Snapshots Transformer – Large Asset Monitoring Industrial Compressor Condition Monitoring Cooling Tower – Predictive Maintenance Power Equipment Rental Solution 13 Diversified product portfolio Aerospace, Outerspace & IOT/IT, Cons and others Automotive Industrial & EV Railways Medical Strategic electronics Cluster PCBA Engine Control Panel UM71 - Receiver Endoscopy cart & ICP HH Sonar Bar Code sensor module Scanner & RFID gateway LED Headlamp/Tail Street light controller ETCS cubicle X-ray & Dental X-ray PLC & Asset Condition Lamp/LED Position Mission Critical Products2 machine Monitoring gateway Lamp/DRL PCBA ESAF Switches PCBA1 BLE Module SDTC cubicle Controller Units Sensors2 Protein & clinical Industrial HMI Reader & BCU Master / BCU Slave Precision Bridge and SDTC Card File ATE & LRU Cable Assemblies chemistry Industrial Tablet PCBA Strain Gage analyzers 1 – Headlamp level switch / Steering control switch/ Windowlift Motor/ Rocker Switch PCBA | 2 - Kaynes has been a valuable industry partner for soft landing of Chandrayaan-3 & launch of Aditya-L1 missions | 3 - Diff. air pressure / Vibration / RTD Temperature 5 Capacity for Manufacturing at Scale Augmented by Technical Capabilities Navi Mumbai Kaynes International Design & Manufacturing Pvt Ltd Ahmedabad o 18 SMT Lines Mysuru Unit I o 70 THD Lines Parwanoo o 26 Cable Harness Lines Manesar Unit I Manesar Unit II o 15 plastic moulding machines Bengaluru Unit I o 10K class clean room Bengaluru Design Facility o Most manufacturing at low cost locations Bengaluru Unit II o Dedicated humidity controlled stores Chennai o Fungible infrastructure Chamarajanagar o 2 exclusive RoHS compliant lines for green manufacturing Kochi Mysuru Unit II Design facility Service centre Manufacturing facility 15 R&D, Certifications and Supply Chain Research and Development Certifications Supply chain Focused on development of new Long term relationship with products and improvement existing suppliers leading to better products credit terms Dedicated research facility at Mysore, Bangaluru & Ahmedabad with a 75 member R&D Team1 Top 10 suppliers - avg relationship of 12 years1 Operations complying with global standards with 12 global accreditations –most for an ESDM company in India1,3 1,500 + suppliers with multiple Facilities approved by global sources for a single component certifications Agencies with specialized dealers for niche E.g. Underwriters Laboratories, CSA2, verticals1 TUV Rhineland 1–as of FY23 | 2–Canadian Standards Association | 3– As per F&S report; During H1FY24 we have dealt with 1200+ suppliers 16 Well Diversified Business Profile… Revenue across verticals Revenue across segments FY23 FY23 14% Automotive 30% Industrial incl EV OEM-Turnkey-PCBA Aerospace, Outer-space & 12% 38% OEM- Turnkey- Box Build Strategic electronics ODM Medical Prod. Eng. & IoT Solutions Railways 6% 62% 3% IoT / IT, Cons and Others 2% 5% 27% Revenue across geographies Low customer concentration 60% 3% 44% 85% 9% 1% 14% 2% India North America Europe South East Asia Others Top 1 Top 5 Top10 17 Marquee customer base Industry Key Customers Long standing relationship with clients Average order inflow per month INR Mn Average business period relationship of top 10 customers in each vertical3 Leading global mfg of electronic instruments and 11 Industrial electromechanical devices 10 10 2,741 2,788 8 7 7 7 2,165 Railways Automotive AutomtiveIndustrial A&D+ Medical Railways IOT/IT Consumer Q1FY24 Q2FY24 Q3FY24 Others Strong order book INR Mn Increase in average order value INR Mn Medical 37,890 9.1 34,618 7.2 30,004 Aerospace+ Others1 5.5 IoT / IT and others 30th June 2023 30th September 2023 31st December 2023 FY22 FY23 Q3FY24 1 – Aerospace, Outer space and strategic electronics; 2 – IoT/IT and Others, 3 - Average period of business relationship is determined based on the length of relationship of top 10 customers in each vertical. 18 Business evolution and key milestones Started exporting sensor electric Listed on NSE/BSE assembly to Phoenix, Arizona Established manufacturing Received approval Got approval for Established unit in facility at Manesar Growth in aerospace, under the setting up hardware Bengaluru defense, power Production Linked Established as a Established Kaynes Collaboration with Qualcomm Incentive Scheme export-oriented unit electronics, manufacturing Technology Europe Received IVSQM Technologies Inc for design for A/C electronics for manufacture of expansion into enterprise GmbH Certifications3 and manufacturing and Telecom populated PCB2 consumer electronics 1988 1995 2000 2004 2008 2009 2010 2012 2016 2020 2021 2022-23 Obtained ISO 9001:2000 New unit in Expanded customer Established Impetus towards Focus upon customer certification for PCBA1 Himachal Pradesh base in Europe manufacturing embedded system, acquisition, ramp-up of and electronic for resale of PCBA1 facility at Mysore design and IoT Chamrajanagar facility & manufacturing services Established unit in solutions and design steps taken for Backward Chennai4 skills enhancement integration into OSAT and Bare PCB manufacturing 1 – Printed Circuit Board Assemblies | 2 – Printed Circuit Boards | 3 - Industry Vertical Specific Quality Management System Certifications for manufacturing & servicing of PCB, electromechanical assemblies, cable 4 harness for aerospace application | 4 – Chennai Unit for undertaking services related to solenoids, electromagnetic relays, inductors, transformers and electromechanical parts The Kaynes Advantage - Key Strengths Well diversified End to end design and Internationally Longstanding business profile across engineering recognized and relationships with top industry verticals : capabilities enabled certified manufacturing global & domestic Address the Low with IoT solutions facilities supported by customers Volume, High Value a strong supply chain segment 1 2 3 4 Strong R&D capabilities Successful track record Well positioned to Demonstrated ability with a state-of-the-art of technology transfers capitalize on strong to handle different manufacturing facilities among MNC & industry tailwinds projects with various to support client across domestic client levels of complexity the value chain 5 6 7 8 20 Well Positioned To Capitalize On Strong Industry Tailwinds… Global ESDM – A trillion dollar industry India all set to be a large ESDM Market 1,203 Global ESDM Market, INR Bn FY23 Indian ESDM Market, INR Bn 928 69 Indian Electronics market 10,860 CAGR: 8.2% CAGR: c.34% 47 327 Domestic Electronics 8,400 9,009 214 CAGR: 8.8% Productions 4,392 ESDM 647 Addressable 571 CAGR: 2.6% Market 3,031 India’s 2,091 CAGR: 11.7% 160 Contribution 96 2,091 2022 2023 Indian ESDM Electronics Design & Engineering Electronics Assembly Electronics Manufacturing Others Market FY23 FY28E Vertical wise CAGR (FY23-FY28E) Advantage India –favorable growth drivers 63% 44% Growth in Import Supply Chain China+1 33% 29% electronics consumption Substitution Realignment Strategy 21% 20% Enhancing Local Export Focus on Component Investment by Local and Automotive Industrial Telecom IT Medical Others* Value Add USD 5 Trillion GDP Manufacturing / Lead Global Players Time Source –MeitY, ELCINA, Frost & Sullivan Analysis | *Others include : Mobile Phones, CEA (Consumer electronics and appliances), Lighting, etc. 22 1 Strong industry tailwinds (cont’d) Global semiconductor market is expected to be a trillion dollar industry India is a growing semiconductor market Global semiconductor market value by vertical (US$bn1) The electronics ecosystem and valuechain Indian semiconductor market (US$bn) Government support - US$10bn+ for the vision of CAGR: c.7% 913 ✓ Aatmanirbhar Bharat and positioning India as the global Electronics equipments Wired communication 90 CAGR: c.20% 80 hub for ESDM, for the development of semiconductors and display manufacturing ecosystem in India Consumer electronics y Electronic devices 80 r Industrial electronics t s 70 u d y 590 Automotive electronics n I s c OSAT + ATMP r t s u d 5 6 0 0 ✓ V th a e s g t o p v o e o r l n o m f e h n i t g h h a ly s a sk ls i o ll l e a d u n a c n h d e d ta p le ro n g te ra d m w s o t r o k d f e o v r e c l e o p - W co i m re m le u s n s ication i n o r t c e Foundry n i r o t c u 3 4 0 0 27 and nurture talent in the semiconductor industry lE Designs d and n o 20 c Computing and tools im 10 Role of OSAT/ATMP players becomes increasingly data storage e S 0 ✓ critical with the strong focus on boosting 2022 2028 semiconductor manufacturing in India 2021 2030 OSAT/ATMP players offer several benefits that is increasingly driving semiconductor manufacturers to collaborate and outsource certain processes Expertise in advanced packaging Ability to handle complex packaging Cost optimization and improving Consistent investment R&D to ensure technologies which is critical to support requirements operational efficiency advancements in Assembly and Testing the rising demand for miniaturization Outsourcing non-core functions allows Quick turnaround times and streamlined Large scale production and adaptability Specialized testing capabilities and semiconductor manufactures to focus on processes to changing demand quality control processes their core Competencies 8 Source –Frost & Sullivan Analysis | 1- Figures are approximate 1 Strong industry tailwinds (cont’d) Global PCB market overview PCB Market (US$bn) PCB Market share by industry 2 Key Trends Lighting Strategic CAGR: c.3% 107.7 4% Electronics ✓ HDI PCB1 market is expected to witness the highest growth due to the growing demand for smart wearables and connected devices Power & Energy 3% Telecom/Mobile 8% 25% 89.3 Smartphones will remain the largest end use industry and Automotive Medical10% ✓ is expected to witness the highest growth due to advancement In automotive electronics IT & Peripherals Consumer 18% Electronics Automotive Asia Pacific will remain the largest market, due to the increasing 2022 2028E 16% 16% ✓ electronic content in automotive, growth in consumer electronic devices & telecommunication products India PCB market3 overview PCB Market (INRbn) 30% of India’s PCB production is exported4 PCB Market share by industry 5 Key Trends CAGR: c.17% 525 Exports vs. Domestic Sale Strategic Computer Electronics Hardware ✓ Rising demand from end markets like wearable electronics, smartphones, aerospace and defense, medical sector etc. Exports 5% 7% 33% LED Lighting ✓ Investment in developing smaller, more compact, and high- performance electronics 8% Industrial 200 Electronics 36% ✓ Increasing trend for computer miniaturization Domestic Mobile Sale 23% 67% Consumer Govt. programs like Digital India and Skill India aimed at ✓ Electronics promoting digital literacy pushing workforce to the use of FY20 FY26E 21% laptops and other digital devices 9 Source – Frost & Sullivan Analysis | 1 – High Density Interconnect Printed Circuit Board | 2 – As of CY21 (Figures are approximate); Frost & Sullivan Analysis | 3 –Bare PCB Market | 4 – FY20 | 5 – FY21 The Way Forward Focus on full product / box build capabilities Catering to OEMs with in-house test fixtures for reliability, faster turn-around, complex prototypes, zero defects, and upgrading facilities to expand consumer portfolio and provide full box build services to secure a larger revenue share Continue to diversify product portfolio and expand across verticals by leveraging research & development capabilities Leverage our in-house design and R&D team, continuously invest in infrastructure, and employ tailored strategies for each vertical to capitalize on industry opportunities. Additionally, by incorporating OSAT and PCB fabrication capabilities into our operations, we are strategically positioned to deliver comprehensive and integrated solutions to customers Focus upon emerging segments in EMS We are focusing on emerging segments including Electric Vehicles (EV) (both four wheelers & two wheelers), EV components and EV charging infrastructure, Railways - train collision avoidance systems, High performance computing servers & hardware, Aerospace / Outerspaceelectronics Expand and set up manufacturing facilities New manufacturing facility set up in Chamarajnagar, Karnataka1, and expansion of manufacturing facilities in Mysore and Manesar. Also, setting up OSAT facility at Kongara Kalan, Telangana and in the process of preparing an implementation plan for a PCB fabrication facility in Mysore, Karnataka thatwill manufacture advanced HDI PCBs Improve operational efficiency through backward integration and pursue inorganic growth Enhance operational efficiency through backward integration through manufacturing in-house components like bare printed circuit boards and in design of integrated circuits, chip sets and system on chips to leverage complete backward integration for supporting component development. We also intend to pursue inorganic growth through strategic acquisitions, investments, and alliances to expand capabilities and enter new geographies Continue expanding customer base to focus on large customers Expand geographical footprint with additional sales and BD representatives, generate brand awareness through content-based marketing, grow exports through S&M teams in the US, Japan, and Europe, and enhance manufacturing facilities to better serve customers 25 1 – Phase I of Chamarajnagar facility is partly operational and phase II is under construction Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Backward integration into OSAT and Bare PCB manufacturing Backward integration into OSAT and Bare PCB Current Operations of Kaynes manufacturing PCB SMT2 Assembly IC1 Frontend IC Backend System Design IC1 Design manufacturing frontend & System Assembly Production Production (bareboard) backend OSAT Manufacturing Process Wafer Saw Die Bonding/ Wire Molding / Integration with (Dicing) Die Mount Bonding Encapsulation a PCB Circuit Chips are very delicate Wafer is attached to a Method of making Process of attaching a products that can be dicing tape, and a interconnects between silicon IC chip to the Die affected by scratches, rotating circular the Die /IC Chips and its The finished IC chip is pad of the support shocks, dust, and diamond blade is used to package or lead frame. integrated with a circuit structure, such as a lead magnetism. Therefore, separate the This connects the chip to on a PCB frame of the the chip is encased in semiconductors while the lead frame with a Semiconductor package epoxy resin to protect it spraying ultrapure water thin gold wire from external factors 1 – Integrated Circuit | 2 – Surface Mounting Technology 19 Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Bare PCB manufacturing process Inner Layer Manufacturing Process CCL (Copper Clad Plated through Hole Image Transfer Etching Lamination Panel Plating Laminate) (PTH) CCL is a raw material for Image transfer using The inner layers are PTH provides a thin deposit Provides a thicker deposit PCBs, it is automatically cut photosensitive dryfilm and Removing the unwanted “stacked” together with of copper that covers the of copper on top of the PTH to the processing size prior UV light. Then inner layer is copper from the panel pre-preg providing hole wall & complete panel deposit to production laminated with prepreg insulation between layers Outer Layer Manufacturing Process Outer Layer Image Pattern Plate Etching Via Hole Plugging Soldermask Surface Finish PCB, or printed circuit board, is an important electronic part and the foundation of electronic components Blue dry film is removed Image transfer using Additional electrolyte Screen printing process is Finishes are applied to the then exposed copper is Soldermask ink is applied photosensitive dry film and plating is deposited in areas used to push ink or resin exposed copper areas to etched & finally chemically over the whole PCB surface. UV light without dry film into holes enable protection of surface removed 20 Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy OSAT and Bare PCB manufacturing capabilities offer strategic benefits Supply Chain & Future Market Vertical Integration Readiness ◼ Integrated offerings to customers with OSAT and PCB fabrication ◼ Greater supply chain resilience capabilities ◼ Reduced vulnerabilities of key component ◼ Wider footprint across the electronics supply chain – from availabilities Semiconductor-Packaging to the end-user product I nt e gration Supply C h a in ◼ Future micro miniaturization of electronic al R ◼ Greater cost efficiencies and better- quality control ti c e s assemblies e r i l i V e n c e F n a o Innovation and Speed to Market s t e r s p e e d p r o p o si ti Better Customer Proposition to m arket Betterval u e ◼ Ability to offer customers a one-stop solution for ◼ Faster time-to-market, a critical factor in the ever-evolving their Electronic Products/ Modules manufacturing semiconductor industry needs ◼ Comprehensive understanding and control of the entire production ◼ Competitive pricing to customers underpinned by process resulting in product innovation better supply chain efficiencies 21 Proven record of consistent financial performance (1/4) Revenue (₹ Mn) EBITDA (₹ Mn) 11,261 1,683 45% CAGR 60% CAGR 7,062 937 4,206 3,682 413 409 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EBITDA Margins (%) Profit After Tax (Restated) (₹ Mn) 14.9% 952 13.3% 117% CAGR 11.2% 9.7% 417 94 97 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 30 Proven record of consistent financial performance (2/4) ROE (%) ROCE (%) 24.5% 24.9% 24.4% 24.2% 14.4% 13.5% 10.5% 8.1% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Net Worth (Rs Mn) Gross Block (Rs Mn) 9,577 1812 1473 1142 916 2,018 1,365 958 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROCE and ROE are adjusted for unutilized IPO proceeds 31 Proven record of consistent financial performance (3/4) Inventory Days Receivable Days 136 137 108 93 101 104 83 69 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Payable Days Net Working Capital Days 122 121 117 113 98 99 86 73 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 32 Working capital is computed based on average outstanding for current and previous fiscal year divided by current year’s sales Proven record of consistent financial performance (4/4) Net Debt (₹ Mn) Net Debt/EBITDA (x) 1,480 3.2 3.1 1,315 1,252 1.6 473 0.3 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Net Debt/Equity (x) Asset Turnover ratio (x) 1.4 6.2 4.8 0.9 4.0 3.7 0.7 0.0 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Net debt is adjusted for unutilized IPO proceeds 33 Profit & Loss Statement (Consolidated) Particulars (₹ Mn) FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Revenue from operations 3,682 4,206 7,062 11,261 Raw material cost 2,417 2,861 4,894 7,801 Employee expenses 424 459 602 771 Other expenses 428 477 629 1,006 EBITDA 413 409 937 1,683 EBITDA margin (%) 11.2 9.7 13.3 14.9 Depreciation and amortization expense 84 101 132 187 Other income 19 40 41 114 Finance cost 236 240 256 349 Profit before tax 113 109 590 1,260 Total tax expenses 19 11 174 308 Net profit after tax 94 97 417 952 Net profit margin (%) 2.5 2.3 5.9 8.5 34 Balance Sheet (Consolidated) Particulars (₹ Mn) FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Gross Block (tangible assets) 850 979 1,112 1,451 Accumulated Depreciation 348 408 473 549 Net Block (tangible assets) 502 571 640 902 Intangible assets 138 267 352 426 Other non-current assets 236 165 369 552 Total non-current assets 877 1,002 1,361 1,880 Inventories 1,511 1,639 2,264 4,132 Trade receivables 936 1,217 1,977 2,271 Cash and cash equivalents 123 143 216 4,860 Other current assets 334 193 410 1,045 Total current assets 2,905 3,192 4,864 12,308 Total Assets 3,781 4,194 6,224 14,187 Borrowings 98 171 293 150 Other non-current liabilities 196 148 273 282 Total non-current liabilities 294 320 566 432 Short-term borrowings 1,340 1,224 1,403 1,209 Trade payables 921 954 1,641 2,229 Other current liabilities 194 300 578 714 Total Current Liabilities 2,454 2,478 3,621 4,152 Total Equity & Reserves 1,032 1,396 2,037 9,604 Total Equity and Liabilities 3,781 4,194 6,224 14,187 35 Cash Flow Statement (Consolidated) Particulars (₹ Mn) FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Cash flow from operating activities Profit before tax 113 109 590 1,260 Adjustment for non-operating items 314 333 386 452 Operating profit before working capital changes 427 442 976 1,713 (Increase)/ decrease in inventories -293 -128 -625 -1868 (Increase)/decrease in trade receivables 293 -281 -760 -293 (Increase)/decrease in payables & other adjustments 44 271 642 535 Cash generated from operations 471 305 233 87 Less: direct taxes paid -19 -28 -22 -503 Net cash from operating activities 452 277 211 -416 Cash flow from investing activities -99 -241 -445 -4,937 Cash flow from financing activities -354 -13 272 5,543 Net increase/ (decrease) in cash & cash equivalent -1 23 38 191 Add: Cash and cash equivalents as at 1st April 8 7 31 69 Add: Net effect of exchange gain on cash and cash equivalents 0 0 0 0 Cash and cash equivalents as at 31st march 7 31 69 259 36 Expansion Update Manesar (Haryana) Chamrajanagar (Karnataka) Work going on at full swing Both the factories are operational Phase wise operationalization Ongoing – Alpha & Beta Blocks ready, Gamma block getting ready Pune (Maharashtra) Upgradation existing facilities Facility acquired Mysore Unit 1 & 2 Manesar To be operationalized Banglore shortly Chennai Chamrajanagar Facilities pictures 37 6 Experienced board of directors and leadership team Ramesh Kunhikannan Anup Kumar Bhat Managing Director & Promoter Independent Director 33 years of experience in the EMS industry Several years of experience Associated with the company since inception Ex. VP Ashok Leyland (subsidiary support) B.Tech from National Institute of Engineering, Mysore B.Tech from Banaras Hindu University Savitha Ramesh Heinz Franz Moitzi s Chairperson, Promoter & Whole-time director Independent Director r o 25 years of experience in the EMS industry 42 years of experience t c Associated with the company since inception Ex. Consultant H&C consulting e r B.Com from University of Madras Bachelors in Business Mgmt. from Baldwin-Wallace College i D f Jairam Paravastu Sampath Koshy Alexander o d Whole time director and CFO Independent Director r a 30 years of experience across manufacturing, operations, sales & 34 years of experience in finance o B marketing Ex. Director Bharat Electronics Limited Associated with company since 2011 B.Com from Bangalore University B.Tech from IIT Madras, PGDM from IIM Ahmedabad Member of ICAI Poornima Ranganath Murali S G Independent Director Independent Director Several years of experience 45 years of experience in finance Current Managing Partner of Law Assist Ex. Group CFO TVS Group Graduate of National Law School of India University, Bangalore B.Com from Bangalore University, Member of ICAI s Rajesh Sharma P Sajan Anandaraman M CEO S / 27+ years of experience in Head – Commercial & Corporate Affairs s P accounting & finance 20+ years of experience in Kaynes across M B.Com from Bangalore University, verticals B.Tech in E&E, University of Calicut K Member of ICAI 16 Awards and Recognition Electronics Company of the Exports Award Year 2022-23 ELCINA ELCINA – EDY, 2018 Emerging Best EMS Co. Entrepreneur IIEESSAA Make in India, India Today Proud Contributor Defennovation To Awards Chandrayaan-3 Excellence in 2023 Manufacturing ,2022 39 Thank You COMPANY Kaynes Technology India Limited Jairam P Sampath Whole-time Director & Chief Financial Officer Email: ir@kaynestechnology.net INVESTOR RELATION ADVISORS Neeraj Vinayak Orient Capital Head Investor Relations (A division of Link Intime India Pvt Ltd) Email: neeraj.vinayak@kaynestechnology.net Payal Dave CIN: L29128KA2008PLC045825 Phone Nos.: +91 98199 16314 Website: www.kaynestechnology.co.in Email: payal.dave@linkintime.co.in