ORIENTELEC

a @ orient CK BIRLA GROUP electric switch to smart August 27, 2019 Listing Department Department of Corporate Services -Listing National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze JeeJeebhoy Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Mumbai -400 051 Fort, Mumbai -400 001 Trading Symbol: ORIENTELEC Scrip Code: 541301 Sub.: Schedule of Investor Meet - Investor Presentation. Dear Sir/ Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), and in continuation to our earlier letter dated August 26, 2019, please find enclosed herewith Investor Presentation referred at the Investor Meet held today, organized by Ambit Capital Private Limited. You are requested take the above document on your record. Thanking you, Yours Sincerely, Company Secretary Encl: a/a Orient Electric Limited -o CK Birlo Group Company cin no.: L31100ORZ016PLcozsegz Plot no. 240, Okhlo Industrial Estate, Phase 111, new Delhi 110020, Indio Tel +9111 40507000 Fox +9111 40507004 Regd. Office: Unit VIII, Plot no.7, Bhoinogor, Bhuboneswor, Odisho 751012 investor@orientelectric.com www.orientelectric.com A Strong Heritage BM Birla Founder & Chairman 1905 - 1982  A man of vision who turned his dreams into reality  One of India’s outstanding business leaders GP Birla Chairman 1922 - 2010  A man who considered material worth secondary to his philanthropic values  Ace industrialist; headed a diversified group of reputed and leading companies in India CK Birla Current Chairman  Member of the National Council of the Confederation of Indian Industry (CII)  Chairman of the Board of Governors of the Indian Institute of Management, Udaipur 2 A diversified business conglomerate The CK Birla Group is a growing US $2 billion conglomerate that has a history of enduring relationships with renowned global companies. With over 25,000 employees, 41 manufacturing facilities, 21 service delivery locations and numerous patents and awards, the Group’s businesses are present across five continents. We operate in three industry clusters: technology and automotive, home and building, and healthcare and education. Technology and Automotive Home and Building Rukmani Birla Hospital (RBH) Healthcare and Birla Institute of Technology, Mesra, Ranchi Education BM Birla Heart Research Centre (BMHRC) The Calcutta Medical Research Institute Modern High School for Girls, Kolkata Rukmani Birla Modern High School, Jaipur 3 Orient Electric Limited One-stop-shop for lifestyle electrical solutions including fans, home appliances, lighting and switchgear 4 Board of Directors Left to right: Rakesh Khanna, K Pradeep Chandra, Alka Marezban Bharucha, Chandra Kant Birla,Desh Deepak Khetrapal, and TCA Ranganathan 5 Chairman’s Message “ The way to our future will not just be about the incremental but increasingly about the radical. We believe that the best way to protect our prospects would be through introduction of disruptive products. These products will not be as much about capturing market share as ” they would be about creating new markets. CK Birla 6 Leadership Team Rakesh Khanna Saibal Sengupta Atul Jain Puneet Dhawan Saurabh Baishakhia Avani Birla MD & CEO Chief Financial Officer Business Head, Fans Business Head Business Head Sr. Vice President & International Business Lighting, Switchgear & Home Appliances Wiring Accessories ” Ashok K. Singh Srihari M. Rao Ravi Chopra Anshuman Chakravarty Benzon John Business Head Chief Innovation Officer Head Human Resources Head Brand & Corporate Head Supply Chain Switchgear & Communication Management Wiring Accessories 7 Overview Part of Over $2 Billion 65 Years Diversified business Conglomerate – of Nurturing Trust CK Birla Group Over Biggest Exporter 1,25,000 of Fans Retail touch points from India across India Presence in Largest 40+ 4 Fans Manufacturer in India Countries Continents across 8 Journey so far Aero Series Inducted into Fans Launched Starts Manufacturing CK Birla Group Entered Lighting LED Lighting with Orient Electric Renamed as Business with complete backward Demerges from Orient Fans CFL, FTL, and GLS integration Orient Paper Ltd. 1954 2008 2014 2017 1940 1990 2011 2015 2018 Established Developed & Entered Home Enters Orient Electric Ltd. in Kolkata Patented Appliances Business Switchgear gets listed on the revolutionary with Air Coolers, Business Stock Exchanges PSPO Technology Water Heaters and Kitchen Appliances 9 Vision, Mission & Our Values vision mission "We are a leading Indian electrical brand "Spreading Happiness by Smart with significant global presence. We are focused on making customers happy by consistently providing Application of Technology" smart electrical solutions through innovation, world-class manufacturing practices, knowledgeable and customer-oriented distribution network, highly responsive after sales service and engaged employees.” our values Excellence Integrity Collaboration Trust Care We consistently aim to achieve and We are committed to the highest We collaborate across functions and We foster a culture of belief and trust We encourage practicing empathy in exceed global benchmarks in standards of professional ethics and businesses to drive organization goals all our acts We are open and transparent in quality and best practices honesty We build mutually rewarding long term sharing relevant information to all We respect each individual and value We always strive for fresher ideas We are credible, we do what we say relationship based on trust and stakeholders everyone’s contribution in the value and newer ways of doing things credibility chain We act in accordance to our roles and We are an open organization which We are most responsive to changing responsibilities We respect diversity and believe in values everyone’s point of view We care for the need of individual and modern lifestyles and consumer consulting, engaging and empowering regardless of one’s position in the professional development We are accountable for both our needs people hierarchy successes and failures and do not We partner in creating a caring We demonstrate drive and allocate blame We celebrate collaboration and take We provide enough freedom and environment commitment for performance pride in our own work and that of space for people to deliver on their We speak up openly without fear others commitments 10 Key Thrust Areas Innovation Widening and product Business Quality Enhancing Smart Design Channels Enhancement Brand Equity Savings Manufacturing Digitization Building People Power Corporate Excellence Efficiencies in Governance Supply Chain 11 First in Many Innovation at the Core  India’s First Smart Fan with Inverter Technology, IoT and Voice Enabled control  India’s First IoT and Voice Enabled Air Cooler  EyeLuv, India’s First LED lights with Flicker Control Technology  India’s First Triple Layer Safety in Switches 13 Fueling the Premium Segment Clear leader in the Premium Segment  Aeroquiet sets the cat amongst the pigeons, carving a new premium category  Lifestyle range of fans meeting the emerging consumer needs  5 Blade TPW fans creating a stir in the premium segment  With AeroSlim Orient captures more than 40% market share in the premium segment in less than 3 years 14 Continuous breakthroughs in Appliances Fast paced growth  Metal body modular cooler aiming to dent the unorganized segment  India’s First IoT and Voice Enabled Air Cooler  IoT enabled Water Heaters range for 2019  Expansion of the product basket 15 Illuminating lives & spreading good health Fastest growing lighting company  First to launch 3 star & 5 star LED Lamp  EyeLuv, India’s First LED lights with Flicker Control Technology  Strong in-roads in Street Lighting  Robust growth in Tender Business 17 Safety at every click Fastest Expanding business at Orient  Vast range of MCB & RCCB with the safest SDB technology  Premium range of Switches with 3AB tech launched  Introduced wide range of Distribution boards  Wide range of electrical accessories to support the product basket 18 Manufacturing Excellence 55% of Manufacturing is in-house  Largest manufacturer of Fans in India with installed capacity of 1.25 Cr. fans  DSRI approved R&D lab  Second largest manufacturer of LED Lamps in India with installed capacity of 4 Cr. Lamps  Manufacturing capacity of 65 lac Switchgear poles 19 Manufacturing & Warehouse locations  5 Factories  26 Warehouses  22 Branches  Over 450 Service Centres Factories Warehouses Branches 20 Widening Business Channels  Over 1,25,000 Retail touch points across India  Over 30,000 retailers enrolled in last 2 years  Leading brand in E-Commerce  Strengthening of B2B teams in Lighting & Switchgears 21 Digitization  Rollout of Sales Force Automation  Product Traceability & Demand Forcasting  Business Intelligence & DMS  Embarking on an end-to-end digital journey by FY22 22 Quality Enhancement  Plan for setting up New Manufacturing Plant in South India by FY21  Major focus on cost leadership with process Automation  Expertise in LED Driver Design and development of LED Driver, PCB Designing Certificate of reliability:  ISO 9001:2008, for quality Management system  ISO 14001:2004, for Environmental Management System  IS 374: Compliance standards matched as per Indian regulations  IEC 63550: Internationally approved product compliance standards  Product specifications are validated by external agencies such as MSME, and tested by ERTL. 23 Building Efficiencies in Supply Chain  Centralization of fans warehousing to mother depot in North and ramping down warehousing locations pan India  Space optimization in Warehouses across businesses with enhanced SNOP  Strengthening controls and improving efficiencies of deliveries  Stepping up Inventory hygiene 24 Enhancing Brand Equity  Mega Campaign for AeroSlim making Orient the highest recalled brand  Superbrand for Fans & Air Cooler  EyeLuv LED campaign is making Orient Lighting a recognized brand in the segment  First campaign for Air Cooler helps to double up sales  Amongst the top 15 most trusted consumer durable brand (ET Brand Equity-Neilson) 25 People Power  Average age of employees is at 37 years  Institutionalization of Learning & Development  Diversity ratio improvement by 200%  Employee engagement rate shows significant improvement 26 Smart Savings “Penny saved is a penny earned”, Sanchay program over the years has institutionalized the process of continuous thinking and ideation on how we can save more. In 2019 Sanchay 2.0 has been re-launched to focus on new & more areas from where efficiencies can be built and saving can be achieved.  Sanchay is a structured cost reduction programme inspiring boundaryless thinking and without targets  The programme identifies costs to be addressed across the Company’s businesses and locations  The programme has been positioned as the employees’ direct contribution to the Company’s profits  Sanchay has helped transform the operarting cuture: from silo to collaborative, from legacy to futuristic, helping improve margins and generate sustainable competitiveness 27 Corporate Governance Enhancing Transparency & Controls  Diversity in the Board with independence of management and sufficient expertise  Independent audit function with quarterly audits and streamlined processes for internal financial controls  Prompt reporting to shareholders on financial and non-financial information  Qualified and experienced professional entrusted with whetting critical decisions and sufficient monitoring safeguards 28 Our Journey in the last 5 years Sales Realisation (Rs. Cr.) CAGR 13% CAGR 17% 1,161 1,289 1,358 1,625 1,864 2014-15 2015-16 2016-17 2017-18 2018-19 *Rs. 703 Cr added in the last 4 years 29 Financial Highlights: Statement of Profit & Loss (In Rs. Cr.) PARTICULARS QTD- Q1 2019 QTD- Q1 2018 Growth INCOME Revenue from operations 568 433 31% Other income1 2 -73% Total Income 569 435 31% EXPENSES Cost of Goods Sold 382 286 33% Employee benefi ts expense 49 42 17% Finance costs 7 5 29% Depreciation and amortisation expense 9 5 82% Other expenses 94 79 19% Total Expenses 540 417 30% EBITDA 45 28 57% EBITDA % to Revenue 8% 7% 1% Profi t before tax 29 18 59% Tax Expense 10 6 67% Profi t after Tax 19 12 58% PAT % to Revenue 3% 3% 0% Other Comprehensive Income, net of tax - - 0% Total Comprehensive Income for the year 19 12 58% 30 Financial Highlights: Cash Flows Net cash flow from Operating Activities (Rs. Cr.) Net Cash flow used in Investing Activities (Rs. Cr.) 132 31 100 6 FY 2019 Q1 FY 2020 FY 2019 Q1 FY 2020 CAPEX = 35 CAPEX = 6 Net Cash flow used in Financing Activities (Rs. Cr.) 100 93 FY 2019 Q1 FY 2020 31 Key Performance Indicators Debt Equity Ratio Debt (Rs. Cr.) 186 0.71 0.44 135 FY 17-18 FY 18-19 2017-18 2018-19 ROCE % Net Block (Rs. Cr.) 29% 110 121 27% FY 17-18 FY 18-19 FY 17-18 FY 18-19 32 Enhancing Shareholder Value Shareholding Pattern Market Capitalisation (Rs. Cr.) Dividend (Rs.) 3,438 FY 2018 FY 2019 3,238 DIIs & Promoters Interim= 0.5 Interim= 0.5 38% 38% Corporates 2,928 8% 16% FII Final= 0.5 Final= 0.5 Public 14 May 2018 31 Mar 2019 14 Aug 2019 EPS (Rs.) 3.27 3.02 FY 2018 FY 2019 33 Follow us on Email: investor@orientelectric.com Thank you. 34