LUXIND

Lux Industries Limited Investor Presentation –February 2021 Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lux Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containingdetailedinformationabouttheCompany. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation maynot be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or anyomissionfrom,thisPresentationisexpresslyexcluded. Certainmattersdiscussed inthisPresentation maycontainstatementsregardingthe Company’s market opportunityandbusinessprospects that areindividuallyand collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition,the company’s abilityto successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from resultsexpressedinorimpliedbythisPresentation.TheCompanyassumesnoobligationtoupdateanyforward-lookinginformationcontainedinthisPresentation.Anyforward- lookingstatementsandprojectionsmadebythirdpartiesincludedinthisPresentationarenotadoptedbytheCompanyandtheCompanyisnotresponsibleforsuchthirdparty statementsandprojections. 2 KARISHMA COTT’s E OZ GLO BIG SHOT ZWOOL Q3 & 9M FY21 O CN COZI M N IR N S Financial Performance TOUCH O SE AFVENUS LN C GENX I Pioneering Commitment 1st ~8% Ranked of Annual 2,000 5,000+ innerwear revenue invested pieces sold every company in in Brand SKU’s minute Volume Terms Promotion Manufacturing 14-15% 100 1st More than Capacity of Ranked Market share in products across 2,000 lac innerwear Brand Organized Men’s 15 in Bengal Brands garments pieces a Innerwear Market year Enjoys a fill rate 1st 47 95% Ranked Number of of against 6 Manufacturing Indian exporter of countries products Industry Avg. of Facilities Innerwear are exported to 80% Fill Rate : Order Collected against Dispatches ; Note Market Share is as on March 2017 4 Q3 FY21 Consolidated Financial Highlights* Revenue EBIDTA +29% +47% 393 80 306 55 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 PAT Working Capital +65% 494 55 404 33 Q3 FY20 Q3 FY21 Mar-20 Dec-20 * -Ind-AS Financials 5 9M FY21 Consolidated Financial Highlights* Revenue EBIDTA +11% +40% 1,028 201 924 144 9M FY20 9M FY21 9M FY20 9M FY21 PAT Working Capital +47% 137 494 404 93 9M FY20 9M FY21 Mar-20 Dec-20 * -Ind-AS Financials 6 Business growing continuously inspite of CoVID-19 Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +9% +28% +47% +65% +37% 25% 388 393 80 55 74 51 355 306 -6% 41 +34% 263 54 55 +64% 247 33 47 31 35 19 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 7 Strong Growth Momentum Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) 1210 240 286 123 +11.2% 30 96 +47.3% +39.7% 137 1028 924 201 93 144 FY20 FY21 FY20 FY21 FY20 FY21 Q4 9M Q4 FY21 is expected to be better than Q4 FY20 *Growth in Revenues, EBITDA & PAT despite Impact of CoVID in Q1FY21 8 Sustained Returns Net Debt to Equity (x) Inspite of CoVID times, Lux Industries has reduced 1.0 Working Capital requirements and paid off debt We continue to be a Net Cash Company 0.4 0.3 Cash Surplus of Rs. 140 Crores -0.1 Mar-18 Mar-19 Mar-20 Dec-20 9 Q3 & 9M FY21 Consolidated Profit & Loss Account* Consolidated Profit and Loss (Rs. in Cr) Q3FY21 Q3FY20 YoY 9MFY21 9MFY20 YoY Revenuefrom Operations 392 305 29% 1,024 920 11% Other Income 1 1 5 4 Total Revenue 393 306 1,028 924 Raw Material 254 201 689 607 Gross Profit 138 104 33% 339 316 7% Gross Profit Margin 35.3% 34.3% 33.1% 34.4% Employee Cost 15 13 36 37 Other Expenses 44 37 101 135 EBITDA 80 55 47% 201 144 40% EBITDA Margin 20.4% 17.9% 19.6% 15.6% Depreciation 4 3 11 9 EBIT 77 51 49% 191 135 41% EBIT Margin 19.5% 16.8% 18.6% 14.6% Finance Cost 1.8 4 7 11 Exceptional Item Gain / (Loss) 0 2 0 2 Profit before Tax 75 46 64% 184 123 50% Tax 20 12 47 30 PAT 55 33 65% 137 93 47% PAT Margin % 14.0% 10.9% 13.3% 10.0% EPS 22.0 13.2 54.6 36.7 * Ind-AS Financials 10 Proforma Financials Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* Q3 FY21 Revenues (Rs. Crs.) Revenues (Rs. Crs.)^ +43% +45% +18% 78 563 93 78 93 64 66 393 Lux Industries JM Hosiery Ebell Fashions TOTAL Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* 9M FY21 Revenues (Rs. Crs.) Revenues (Rs. Crs.) +39% +10% -30% 147 1,426 252 210 252 229 147 1,028 Lux Industries JM Hosiery Ebell Fashions TOTAL 9M FY20 9M FY21 9M FY20 9M FY21 • TheBoardofDirectorsofLuxIndustriesLimitedhaveapprovedtheschemeofmergerofJ.M.Hosiery&Co.LimitedandEbellFashionsPrivateLimitedwithLuxIndustriesLimited • Theschemeissubjecttorequisiteapprovalsoftheregulatoryauthorities * The Q3 & 9M FY21 Revenues for JM Hosiery and Ebell Fashions are subject to audit and may change 1111 ^ In 9M FY21 Revenue for Ebell Fashions got impacted on account to subdued demand for Leggings due to CoVID-19 KARISHMA COTT’s E OZ GLO BIG SHOT ZWOOL O CN COZI M N Strong Foundation IR N S TOUCH O SE AFVENUS LN C GENX I We have created Brand Equity Range of more than 100 products under 15 well-established brands for men, women and children, ensuring relevance across ages, genders, geographies and seasons. 13 Our Products are Bare Necessities Premiumization Milestone Achieved Diverse Product Portfolio ✓ Lux Cozihelped sectorial ✓ ONN Brand growing revenues at 20% transformation from un- organized to brand driven ✓ Mass, Semi Premium & ✓ Increase in Premium Brand Premium 01 03 contribution to revenue & Expanding 05 ✓ Enjoys the recall of being a Margins Pioneer in the launch & ✓ Men’s innerwear to Men’s 20.9% styling of premium & Women’s outerwear 16.8% products ✓ Complementary Products ✓ Largest in the space of like socks & children’s wear Semi-premium Indian FY18 FY20 Brands which contributes 10% to revenue for FY17 Fresh Initiatives Widest Consumer ✓ India’s First Scented Vest; Range Landmark Product in the Men’s Innerwear Category -Creating ✓ The Products range from value-based products keeping Rs. 38 –Rs. 1,799 in mind the essential necessity 02 and aspirational style quotient 04 ✓ Over 5,000 SKU’s , among of India the largest innerwear ranges in the Industry, ✓ Invested in quality material and thus graduating into a one- contemporary designs stop destination (European and American influences) 14 Our Products satisfy Customer needs Presence across Categories Presence across various Price Points Premium products to grow at a EBITDA Margin : CAGR of 20% in the next 2-3 years 15-18% Premium EBITDA Margin : 13-15% Med Premium EBITDA Margin : 8-10% … From Semi Premium to Premium Economy … From Men’s innerwear to Men’s and Women’s outerwear Lux Cozi is one of the strongest and fastest ONN is emerging as one of the most Lux Venus is one of the largest vest brands in growing men's innerwear brands (economy promising mid-to-premium men’s innerwear the economy category and mid-segment) brands 15 We deliver Quality to generate Loyalty State-of-the-art Machines from Company invested in cutting machine from Morgan Technica SPA, Italy, and knitting machine from Mayer & Cie, Germany, and United Texmac Pte Ltd Singapore Up-gradation and replacement of old machinesis done as and when required in order to maintain high quality of output To keep creating new benchmarks for quality and comfort, the two fundamentals that lay the foundation of our company and take it to the epitome of success. MORE THAN PRODUCTS; A QUALITY ASSURANCE OF THE BEST MANUFACTURING AND QUALITY STANDARDS 16 ….poised to Grow Rising exports Technology 04 05 03 Demographic dividend 06 Innovation Middle class boom 07 02 08 Consumer purchasing power Brand consciousness 09 Growing population 01 10 Online retail Goods & Service Tax (GST) 17 We have right distribution setup to Support Growth Merchandise Strength ❑ Core strength lies in the goodwill that we enjoy among distributors, dealers and retailers rather than machines and products +950 4 Capitalizing Opportunity Distributors +160 ❑ First Indian innerwear company to organize distributor and Exclusive Brand owner conferences within and outside India Exclusive Distributors Outlets with over 35 years of Relationship Amongst the few Large Format companies in Innerwear Sector to have presence Stores through EBOs “ There is less than 1% attrition among distributors ” Enable to showcase entire product range and portfolio “ Available from Distributors ,Retailers to small clusters in India ” under a single roof LUX is available where customers are… 18 Cozy World – Endeavour of Lux Industries Limited • A unique and pioneering concept of Standalone Stores in Retailingthe entire gamut of brands from the house of LUX Industries. • Showcasing and Retailing the best in India’s innerwear, outer wear and comfort wear. • Cozy World is an exciting business opportunity for our business & channel partners to boost business in these changing times. With space required of Min 400sft carpet and around 20-25 lakhs of Investment, Cozy World stores have created win-win proposition for all. Current Operational Stores: • Nov 2020 – Barasat, Kakurgachi • Dec 2020 – Kanchrapara • Jan 2021 – Howrah Future Plans • Open 6 more stores by Mar 2021 • Targeting Tier-I, Tier-II and Tier-III markets. • Next Fiscal year the company aims to add at least 50 exclusive stores 19 We are led by Experienced Leadership Mr. Ashok Kumar Todi Mr. Pradip Kumar Todi Chairman Managing Director ❑ His forte lies in Marketing of the products and formulating ❑ PresentlylookingaftertheProductDevelopmentandProduction various policies for Growth & Expansion of the business on ❑ Forteisindevelopingnewpatterns,yarncombinations,knittingtechnologies panIndiabasis ❑ HelpedtheCompanytointroducenewproductswithnewstylesfromtimeto ❑ Hehasrejuvenated with exploring schemesfor distributors, time retailersandevenforconsumers ❑ Immenseacquaintanceintechnicalknow-howinhosieryindustry ❑ Has also been associated with various philanthropic organizationsofthecountry ❑ Contribution in decreasing production costs helped the Company to enhance profits Mr. Navin Todi Mr. Saket Todi Mr. Udit Todi Director – J.M.Hosiery President - Marketing President - Strategy ❑ Aged 30 years, has done his post graduation in Brand ❑ Aged 40 years, he is over 20 years of experience in the ❑ Aged 30 years, he is Master of Science in Finance from Managementandhaseminentknowledgeinmarketing hosieryindustry The London School of Economics and Political Science ❑ His contribution towards strengthening the (LSE) ❑ Under his leadership, Company successfully rose to the premiumisationofbrand“Lux”issignificant challengesbyenhancingproductofferings. ❑ Has been associated with the Company since 2014 and ❑ Has been associated with the Company since 2014 with has expertise in the field of finance and his proficiency in ❑ He has worked across various areas, building a multi his in-depth knowledge in marketing which has helped the management marketing area of the Company is dimensional experience especially in marketing and the Company to achieve greater success and increase remarkable operations. profitability 20 We are supported by Strong Management Team Mr. Saurabh Kumar Bhudolia- Chief Financial Officer Mr. Sanjay Mittal - Vice President (Sales) He is a CA with 15 years of experience spanning across Corporate Finance, He heads the Sales function and plays an important role in formulating the Accounts, Planning and Risk Management verticals. He has previously worked SalesStrategy.HeisassociatedwiththeCompanysince1996 withFutureLifestyleFashionsLtd.,MondelezInternational,SulaVineyardsPvt. Ltd.andTataSteelLtd. Mr. Narendra Panjwani - Head Of Quality Control Mr. Bibekananda Maity– Chief Information Officer He has many years of experience in hosiery industry, as he had worked with He has done post graduation in MBA & MCA and has more than 22 years of MaxwellIndustriesLimitedfor21years.HehasdoneBachelorofScience.Heis experience in IT function of manufacturing sector. He is associated with the associatedwiththeCompanysince2013 Companysince2015 Mrs. Smita Mishra - Company Secretary & Compliance Officer Mr. Manoj Ghiya - Production Manager She is an Associate Member of The Institute of Company Secretaries of India (ICSI). She ensures efficient administration of the company with regard to He formulates the Strategy to run the manufacturing processes reliably and compliance of statutory and regulatory requirements. She is associated with efficiently.HeisassociatedwiththeCompanysince1989 theLuxgroupsince2009 Mr. Surendra Kumar Bajaj - Vice President (Marketing) Mr. R.K. Bhutoria - HR Manager He has worked with Khaitan Group of Companies before joining Lux and has He plays a major role formulating Strategy for Employee Engagement and an extensive experience in marketing. He is associated with the Company Empowerment.HeisassociatedwiththeCompanysince2004 since2014 21 We are honoured by Awards & Recognitions 2014 2014-15 2015 2016 The Master Brand The Admired Brand of India The World’s Greatest Brands Asia’s Greatest Brands 2018 2019 2019 2019 Lux Cozi - Best Brand of the Year Lux Cozi – India’s Most Lux Cozi – Asia’s Most Lux Cozi – Most Admired Brand Trusted Brand Trusted Brand 22 KARISHMA COTT’s E OZ GLO BIG SHOT ZWOOL Market Penetration O CN COZI M N IR N S Strategy TOUCH O SE AFVENUS LN C GENX I The New Age Distribution: E – Commerce Post Covid with new normal setting in, having digital channel for commerce is of prime importance Amazon ✓ Tied up with various online partners like, Amazon, Myntra Myntra, Paytm, Flip Kart etc. ✓ Started receiving around 4K orders per day with a growth ofaround +60% over last year. ✓ Target to keep the momentum going with a higher pace to set up the separate business model . Paytm FlipKart ✓ Increase in product offerings to have wide range available 24 Focus on Demographics with Huge Potential ✓ Amongst the Top 5 Indian innerwear brands to extend its product portfolio from innerwear vests to outerwear cum Europe related products Middle East ✓ Product offerings include Vests, briefs, trunks, boxers, India thermal wear, Panties, camisoles, leggings, lounge wear, t- South-East Asia Africa shirts and socks across ages, genders and seasons ✓ Present in high-growth segments of active wear and Australia sportswear ✓ Pan India Footprint – Strong Presence in Western & Central ✓ For FY 2019-20, Export Contribution to Revenue was 10.4% India with highest absolute sales from Madhya Pradesh, U. ✓ Increase in the number of countries exported to from 22 to 47 over the P. and Uttarakhand past 5 years ✓ Sales focussed in tropical countries with demographics Exports of Rs. 133 crores in FY20 similar to India thereby offeringa huge potential Disclaimer : Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness 25 Sustained Brand Investments 15 Ye Andar Ki Baat Hai the first television Marketing Spend (Rs. In Cr) 1992 advertisement featuring Sunny Deol was Brands launched. 109 100+ 91 89 Products 76 Face of Lux Sunny Deol was signed as Lux Cozi’s 2001 brand ambassador 56 56 49 41 New look - Indian film icon Shah Rukh Khan was 2010 engagedas brand ambassadorforONN FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Lux sponsored the KKR team in the IPL, now an international cricket event, ✓ Invested Rs. 566 Cr in our brands across the 8 enhancing visibility and respect Varun Dhawan was signed as Lux Cozi brand yearsendingFY20 ambassador; Lux Glo, a sub brand of Lux Cozi Lux also sponsored 2017 was launched the capability to conceive, invest ✓ Sustainedbrandinvestmentsat 8% of turnover the Bollywood and mature brands Awards Ceremony Amitabh Bachchanwassigned August2017 ✓ Lux’s profit from every rupee invested in brand TOIFA in Vancouver in 2016, spending increased from 5.74% in FY13 to strengthening its 7.39% in FY20 pan-India visibility 26 Capturing Market Share of the Unorganised Space GST to aid faster customer transition from the Unorganised Space to the Organised one… ✓Have signed Mr. Amitabh Bachchan as the Brand Ambassador for our brand ‘Venus’. It is one of the largest innerwear brands in India. We have also signed him for our winter wear Endorsement of LUX products will brand ‘Inferno’ further strengthen the bond with the masses, give our users a greater ✓Launched Mr. Bachchan as its ambassador through an extensive campaign from January senseofpurposeandhelpthebrands 2018 across a mix of media like Television, Online, Print and Out-of-Home media scale newer heights over the course ofnextfewyears ✓Mr. Bachchan's iconic legacy as an actor, the brand appeal synergizes with his - Amitabh Bachchan personality which is liked by people of all demographics ✓Have signed Mr. Varun Dhawan as the new brand ambassador for LUX Cozi. By signing Dhawan, LUX Cozi is repositioning itself within the young audience I am delighted to be the brand ambassador for LUX Cozi; their ✓LUX Cozi is one of the most popular and the largest market share holder in the innerwear products stand for comfort economy to the mid-segment of men’s innerwear. and quality and I really liked the vibe of the ad campaign when I met with the ✓The style and fashion sense makes him endearing to all sections of the audience creativeteam. cutting across age groups, especially the youth -Varun Dhawan 27 Continuous Strategic Innovation CSE Consulting Artimas Fashions Synergies LLP Private Limited (License Owner of ✓ Aim at providing superior product quality coupled (Subsidiary of Lux One8) – Brand of Virat with comfortable feel that will grab instant attention Industries) Kohli of the youth Artimas Fashions will be manufacturing and marketing ✓ Fill the need-based vacuum that is created in the a unique collection of socks, innerwear and sleepwear premium innerwear for One8, globally ✓ Provide knowledge and expertise in manufacturing, designing, marketing and retail for the brand With One8, we aim to disrupt the premium innerwear segment through innovative product offerings. We feel extremely confident that the about our distribution and resource strength, coupled with the youth appeal of Virat Kohli will make One8 the mostpreferredbrand in the premium category 28 KARISHMA COTT’s E OZ GLO BIG SHOT ZWOOL O CN COZI M N Historical Performance IR N S TOUCH O SE AFVENUS LN C GENX I Operating Performance Revenue (Rs. In Cr) PAT (Rs. In Cr) EBITDA & PAT Margins (%) EBITDA% PAT% +8% 1,216 1,210 123 14.5% 15.70% 15.4% 1,079 +29% 99 12.6% 871 909 941 960 78 10.0% 60 8.9% 10.10% 713 45 51 8.0% 7.2% 8.1% 31 6.3% 5.5% 6.2% 20 5.0% 3.6% 2.9% FY13 FY14 FY15 FY16 FY17 FY18* FY19 FY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 EBITDA (Rs. In Cr) Cash PAT (Rs. In Cr) EPS 187 190 135 48.7 +23% 156 +27% 110 +29% 39.1 121 88 30.8 95 67 24.9 81 55 20.3 70 17.9 45 37 41 12.4 25 8.1 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY17, FY18 and FY19 numbers are as per Ind-AS Financials * The Revenues stated for FY18 have been restated as per IND AS 115 30 FY19 and FY20 numbers are on consolidated basis Company : Investor Relations Advisors : KARISHMA COTT’s E OZ GLO BIG SHOT ZWOOL O CN COZI M N IR N S CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 TOUCH O SE AFVENUS Mr. Saurabh Kumar Bhudolia Mr. Jigar Kavaiya +91 9920602034 LN saurabh.bhudolia@luxinnerwear.com jigar.kavaiya@sgapl.net C GENX I www.luxinnerwear.com www.sgapl.net