PGIL

- PEARL GLOBAL Exceeding Expectations Always PGIUSE/2022-23/12 Date: May 25, 2022 THE GENERAL MANAGER, THE GENERAL MANAGER, DEPARTMENT OF CORPORATE SERVICES -CRD LISTING DEPARTMENT BSE LIMITED NATIONAL STOCK EXCHANGE OF INDIA LTD. 1sr FLOOR, NEW TRADING RING "EXCHANGE PLAZA", PLOT NO. C-1, ROTUNDA BUILDING, P. J. TOWERS G-BLOCK, SANDRA -KURLA COMPLEX, DALAL STREET, FORT, SANDRA ( E }, MUMBAI - 400 001 MUMBAI -400 051 Reg: Scrip Code: BSE--532808; NSE-PGIL SUB: Investors presentation for the quarter and financial year ended March 31, 2022 Dear Sir/Madam, Please find attached herewith financial update for the quarter and financial year ended March 31, 2022 for investors of the Company. You are requested to please update the same and obliged. Thanking you, ----.LOUfS faithfully, for arl Global Industries Limited (Ravi Arora) Company Secretary End: as above Pearl Global Industries Limited Corp. Office Pearl Tower, Plot No. 51. Sector-32. Gurugram -122001, Haryana (India) T •91-124-4651000 I E: info@pearlglobal.com Cl N L7 4899DL1 989PLC036849 Regd Office. C-17 /1, Paschim1 Marg, Vasant Vihar. New Delhi-110057 End-To-End Clothing Vendor & Supplier to Leading fashion brands TRANSFORMING THE WORLD OF FASHION Investor Presentation May 2022 Safe Harbour ThispresentationhasbeenpreparedbyandisthesoleresponsibilityofPearlGlobalIndustriesLimited(the“Company”).Byaccessingthispresentation,youareagreeingtobebound bythetrailingrestrictions. Thispresentationdoes not constitute orformpart of anyofferorinvitation or inducementto sell or issue, or anysolicitation of anyofferorrecommendation topurchase orsubscribe for,any securities of the Company, nor shall it or anypart of it or the factof its distribution form the basis of, or be reliedon in connection with, any contract or commitment thereof. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation.Such information and opinions arein alleventsnot currentafter thedate of thispresentation.There is no obligation toupdate, modifyor amendthiscommunication or tootherwisenotifytherecipientiftheinformation,opinion,projection,forecastorestimatesetforthherein,changesorsubsequentlybecomesinaccurate. Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward looking statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”, “pursue”, “shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and otherfactorsthatmaycausetheCompany’sactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedor implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the Company, (d) technological changes,(e)investmentincome,(f)cashflowprojections,and(g)otherrisks. Thispresentationisfor general informationpurposes only, withoutregard to anyspecificobjectives, financial situations orinformationalneeds ofanyparticularperson.The Company mayalter,modifyorotherwisechangeinanymannerthecontentofthispresentation,withoutobligationtonotifyanypersonofsuchchangeorchanges. 2 Message from the Management Commenting on the Results, Mr. Pulkit Seth, Vice-Chairman & Non-Executive Director, said, “We are delighted to report the highest ever annual revenue growth in FY22. It is primarily driven by tailwinds in demand from international markets. Indian textile market is on a cusp of new investments based on demand and opens doors to cater to a plethora of internationalbrands.Our multinational presence enables ustocater to clients acrossgeographies.We expect this demand momentum to continuewith normalizationof Covidsituationandchangein consumers’buyingpreferences.” Commenting on the Results, Mr. Pallab Banerjee, Managing Director said, “I am happy to state that the FY22 performance has been in line with our expectations with a growth of 82% in revenues. Improved revenues are majorly due to improvement in capacity utilizations, commencement of commercial production in the Bangladesh factory and partnership facility in India and Vietnam. Going forward, we will continue to work on improving our operational efficiencies to enhance our ROCE trajectory. The favorable government policies coupled with our asset light business model will lead to a robust growth both in terms of topline and bottom-line.” 4 Business Highlights FY22 Revenue Rs. 2,713.5 CRS. 82% ROCE 12.4% +690 bps • 147% YoY growth in overseas business • Increase in revenue from partnership facility in India & Vietnam s • Start of commercial production in the Bangladesh factory ROCE improved by 690 bps to 12.4% in FY22 from 5.5% in FY21 due t h • 65% YoY increase in no of pieces shipped to: • Improved asset turns on account of the commercialization of the g Partnership Bangladesh facility i l Facility • And improvement in capacity utilization h g Revenues from partnership facilities increased in India and Dividend Vietnam i H • The Board has recommended a dividend of Rs. 5 per share for a Statutory Auditor face value of Rs 10 each Appointed E&Y as statutory auditor for Hong Kong subsidiaries 5 Consolidated Result Highlights FY22 +82% +132% +300% Revenue EBITDA PAT Rs 2,713.5 CRS. Rs 140.6 CRS. Rs 70.1 CRS. +28% +16% Cash & Cash Equivalent Net Worth Rs 149.8 CRS. Rs. 598.9 CRS. 6 Consolidated Performance Highlights Q4 & FY22 Revenue EBITDA PAT INR CRS. +70.7% +26.8% +81.5% 896.0 39.7 28.5 31.3 524.8 15.7 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue EBITDA PAT +82.0% +132.0% +300.6% 2,713.5 140.6 70.1 1,490.9 60.6 17.5 FY21 FY22 FY21 FY22 FY21 FY22 7 Key Performance Indicators FY22 No. of pieces shipped (in Mn.) Revenue Contribution from Key Clients Revenue Contribution from customers added in last 5 years 53.9 21% 21.2% 41.4 41.0 19.7 36.1 13.2 13.7 32.7 10.4% 13.6 10.8 18% 61% 4.7% 5.3% 27.6 24.3 22.8 17.6 18.0 FY19 FY20 FY21 FY22 0.9 1.1 1.2 1.8 4.5 3.0 3.4 3.7 2.1 2.1 FY18 FY19 FY20 FY21 FY22 Years of Relationship India Bangladesh Vietnam Indonesia 10+ years 5+ years <5 years No of pieces shipped in FY22 were the Revenue contribution from customers highest ever attributed by improved Revenue contribution from customers less than 5 years increased due to performances in partnership factories in India added in last 5 years doubled in FY22 contribution from ‘PVH’ growing in and Vietnam and commercialization of on account of new customers addition Vietnam Prudent factory in Bangladesh 8 Consolidated Profit and Loss Statement - Q4 FY22 Profit and Loss (INR CRS.) Q4 FY22 Q4 FY21 Y-o-Y Q3FY22 Q-o-Q Revenue from Operations 896.0 524.8 71% 700.0 28% Cost of Goods Sold 529.3 288.4 383.7 Revenue increased by 71% YoY: Gross Profit 366.7 236.4 55% 316.3 16% ▪ Increase in revenue from Gross Profit Margin 40.9% 45.0% 45.2% partnership facility in India and Employee Cost 126.9 89.6 121.8 Vietnam ▪ Start of commercial production Other Expenses 200.1 115.5 151.8 in Bangladesh factory EBITDA 39.7 31.3 27% 42.7 -7% EBITDA Margin 4.4% 6.0% 6.1% Depreciation* 12.7 11.3 11.6 Gross Margin: Other Income 17.8 8.5 3.0 ▪ Lower margins due to change in EBIT 44.8 28.5 58% 34.1 31% product mix EBIT Margin 5.0% 5.4% 4.9% Finance Cost 13.1 11.2 12.6 PBT before exceptional items 31.7 17.2 84% 21.5 47% Other Expenses: Exceptional Item Gain / (Loss) 0.4 -0.3 0.2 ▪ Outsourcing cost has been PBT 32.1 17.0 89% 21.3 51% clubbed under other PBT Margin 3.6% 3.2% 3.0% expenses Tax 3.6 1.3 4.5 PAT 28.5 15.7 82% 16.8 69% PAT Margin 3.2% 3.0% 2.4% EPS 12.5 7.0 7.6 *includes leasehold amortization from FY20 onwards 9 Consolidated Profit and Loss Statement – FY22 Profit and Loss (INR CRS.) FY22 FY21 Y-o-Y Revenue increased by 82% YoY: Revenue from Operations 2,713.5 1,490.9 82% ▪ 147% YoY growth in overseas business Cost of Goods Sold 1,510.6 768.9 ▪ Increase in revenue from partnership facility in India Gross Profit 1,202.9 722.0 67% and Vietnam Gross Profit Margin 44.3% 48.4% ▪ Start of commercial production in Bangladesh factory Employee Cost 458.6 325.3 ▪ 65% YoY increase in no of pieces shipped Other Expenses 603.7 336.1 Gross Margin: EBITDA 140.6 60.6 132% ▪ Lower margins due to change in product mix EBITDA Margin 5.2% 4.1% Depreciation* 48.3 44.1 Employee Cost: Other Income 33.5 23.5 ▪ Employee cost as % of sales has declined from 22% to EBIT 125.7 40.0 215% 17% EBIT Margin 4.6% 2.7% Other Income: Finance Cost 46.6 41.3 ▪ Rental income INR 7.69 Crs/Foreign exchange gain INR PBT before exceptional items 79.1 -1.3 8.25 Crs/Fair value of investment INR 5.73Crsn other 11.33Cr Exceptional Item Gain / (Loss) 6.7 12.7 PBT 85.8 11.4 652% Finance Cost: PBT Margin 3.2% 0.8% ▪ Finance cost as % of sales has declined from 2.8% to Tax 15.7 -6.1 1.7% PAT 70.1 17.5 300% Tax Rate: PAT Margin 2.6% 1.2% ▪ Stood at 19.86% on PBT excluding exceptional items EPS 31.5 8.0 *includes leasehold amortization from FY20 onwards 10 Consolidated Balance Sheet as on 31st March, 2022 Assets (INR CRS.) Mar-22 Mar-21 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Non -Current Assets 533.9 533.2 Total Equity 614.9 530.2 Property Plant & Equipment along Property Plant & Equipment 258.2 213.8 Share Capital 21.7 21.7 with CWIP: CWIP 15.2 47.0 Reserves & Surplus 577.3 495.6 ▪ Capitalization of Bangladesh Goodwill 18.0 17.6 Non Controlling Interest 15.9 12.9 facility Intangible assets 0.7 0.5 Non-Current Liabilities 254.8 244.5 ▪ Land acquisition in Indonesia and Right of use asset 111.7 98.0 construction of building Investment Properties 59.0 60.5 Financial Liabilities Working Capital Days declined to 63 Investment -Others 49.9 47.4 (i) Borrowings 123.8 124.6 days: Loans 1.3 21.7 (ii) Lease Liabilities 71.6 65.3 ▪ Receivables days declined to 49 Other Financial Assets 11.0 12.2 (iii) Other Financial Liabilities 2.4 1.4 days from 59 days Deferred Tax Assets (Net) 0.9 4.7 Provisions 24.3 23.1 ▪ Inventory days increased to 73 Other Non -Current Assets (Net) 2.1 2.1 Other Non Current Liabilities 30.1 30.1 days from 68 days Other Non Current Tax Assets (net) 6.0 7.7 Deferred Tax Liabilities 2.6 0.0 ▪ Payables days declined to 59 days Current Assets 1,246.7 760.8 Current Liabilities 911.0 519.3 from 60 days Inventories 539.6 278.8 Increase in Short term Borrowings: Financial Assets Financial Liabilities ▪ Rs. 198 CRS increase in overseas (i)Investments 5.3 7.5 (i) Borrowings 440.3 199.9 business (ii) Trade receivables 366.6 242.2 (ii) Trade Payables 438.7 246.8 ▪ Rs. 43 CRS increase in India (iii) Cash and cash equivalents 116.9 94.7 (iii) Lease 8.8 8.6 business (iv) Bank balances 32.9 22.3 (iv) Other Financial Liabilities 9.0 54.6 (v) Loans 34.6 17.1 Other Current Liabilities 9.5 7.4 ▪ 82% YoY increase in revenues has Other Financial Assets 5.9 0.9 Current tax liabilities (net) 2.2 0.9 led to higher working capital and Other current assets 144.9 97.3 Provisions 2.4 1.1 borrowings Total Assets 1,780.6 1,294.0 Total Equity & Liabilities 1,780.6 1,294.0 11 Consolidated Cash Flow Particulars (INR CRS.) Mar-22 Mar-21 Net Profit Before Tax 85.8 11.4 Net Operating Cashflow: ▪ Despite higher working capital Adjustments for: Non CashItems / Other Investment or Financial Items 76.2 61.3 requirements, working capital as a no Operating profit before working capital changes 162.1 72.6 of days has declined to 68 days Changes in working capital -239.2 38.1 ▪ Higher working capital required due to 147% YoY growth in overseas Cash generated from/(used in) operations -77.1 110.8 business Direct taxes paid (net of refund) -7.7 -3.5 Net cash flow from Financing activities: Exceptional Items -6.7 -12.7 ▪ Increase in short term borrowings to fund higher working capital Net Cash from Operating Activities -91.5 94.6 requirement led to an increase in net Net Cash from Investing Activities -39.6 -26.0 cash from financing activities Net Cash from Financing Activities 153.3 -61.9 Net Increase/(Decrease) in Cash and Cash equivalents 22.1 6.6 Add: Cash & Cash equivalents at the beginning of the period 94.7 88.1 Cash & Cash equivalents at the end of the period 116.9 94.7 12 Standalone Performance Highlights Q4 & FY22 Revenue EBITDA PAT INR CRS. +28.7% +127.8% +162.2% 349.7 14.1 12.7 271.7 6.2 4.9 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Revenue EBITDA PAT +21.1% 933.8 41.0 +3,149.6% 771.4 27.2 0.8 -3.8 FY21 FY22 FY21 FY22 FY21 FY22 13 Standalone Profit and Loss Statement – Q4 FY22 Profit and Loss (NR CRS.) Q4 FY22 Q4 FY21 Y-o-Y Q3FY22 Q-o-Q Revenuefrom Operations 349.7 271.7 29% 197.8 77% Revenue increased by 29% YoY: Cost of Goods Sold 179.3 166.0 70.6 ▪ Increase in revenue from Gross Profit 170.4 105.8 61% 127.2 34% partnership facility in India Gross Profit Margin 48.7% 38.9% 64.3% Employee Cost 46.8 33.4 38.6 Increase in Gross & EBITDA Margin: Other Expenses 109.5 66.1 79.9 ▪ Higher contribution from knit EBITDA 14.1 6.2 128% 8.7 63% business EBITDA Margin 4.0% 2.3% 4.4% ▪ Outsourcing manufacturing cost has Depreciation* 4.3 5.3 4.1 been clubbed under other expenses. Other Income 12.9 10.7 6.3 EBIT 22.7 11.7 95% 10.8 109% EBIT Margin 6.5% 4.3% 5.5% Finance Cost 6.8 6.8 7.3 PBT before exceptional items 15.9 4.8 3.5 Exceptional Item Gain / (Loss) 0.2 -0.3 0.0 PBT 16.1 4.5 256% 3.5 361% PBT Margin 4.6% 1.7% 1.8% Tax 3.4 -0.3 1.1 PAT 12.7 4.9 162% 2.4 432% PAT Margin 3.6% 1.8% 1.2% EPS 5.9 2.2 1.1 *includes leasehold amortization from FY20 onwards 14 Standalone Profit and Loss Statement – FY22 Profit and Loss (INR CRS.) FY22 FY21 Y-o-Y Revenuefrom Operations 933.8 771.4 21% Revenue increased by 21% YoY: Cost of Goods Sold 428.1 473.1 ▪ Increase in revenue from Gross Profit 505.7 298.3 70% partnership facility in India Gross Profit Margin 54.2% 38.7% Employee Cost 152.2 107.8 Increase in Gross & EBITDA Margin: Other Expenses 312.5 194.3 ▪ Higher contribution from EBITDA 41.0 -3.8 NA knit business EBITDA Margin 4.4% -0.5% ▪ Contract manufacturing cost Depreciation* 17.6 18.1 captured in other expenses Other Income 32.0 24.1 EBIT 55.4 2.2 25x Finance Cost: EBIT Margin 5.9% 0.3% ▪ Finance cost as % of sales has Finance Cost 25.9 24.0 declined from 3.1% to 2.8% PBT before exceptional items 29.6 -21.8 Exceptional Item Gain / (Loss) 6.6 12.7 Tax Rate: PBT 36.1 -9.1 NA ▪ Stood at 30.16% on PBT excluding PBT Margin 3.9% -1.2% exceptional items Tax 8.9 -10.0 PAT 27.2 0.8 32x PAT Margin 2.9% 0.1% EPS 12.5 0.4 *includes leasehold amortization from FY20 onwards 15 Standalone Balance Sheet as on 31st March, 2022 Assets (INR CRS.) Mar-22 Mar-21 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Non -Current Assets 344.8 360.6 Total Equity 343.5 313.8 Property Plant & Equipment 124.1 128.5 Share Capital 21.7 21.7 CWIP 0.0 0.4 Reserves & Surplus 321.8 292.1 Increase in Short term Borrowings: Intangible assets 0.7 0.5 Non-Current Liabilities 148.9 151.3 ▪ In line with growth of the company Right of use asset 21.7 29.0 Investment Properties 59.0 60.5 Financial Liabilities Investments 126.4 119.1 (i) Borrowings 83.3 82.0 Loans 0.1 4.9 (ii) Lease Liabilities 21.5 28.4 (iii) Other Financial Liabilities 2.4 1.4 Other Financial Assets 6.5 7.5 Provisions 9.3 9.4 Deferred Tax Assets (Net) 0.0 3.9 Other Non Current Liabilities 30.1 30.1 Other Non Current Assets (Net) 0.5 0.5 Deferred Tax Liabilities 2.3 0.0 Other Non Current Tax Assets (net) 5.7 5.6 Current Liabilities 371.1 311.9 Current Assets 518.7 416.3 Inventories 221.8 132.7 Financial Liabilities Financial Assets (i) Borrowings 176.3 133.3 (i) Investments 5.3 7.5 (ii) Trade Payables 178.8 161.7 (ii) Trade receivables 115.9 145.2 (iii) Lease 3.9 3.8 (iii) Cash and cash equivalents 43.2 46.0 (iv) Other Financial Liabilities 2.4 5.3 (iv) Bank Balances 21.4 11.1 Other Current Liabilities 8.5 7.1 (v) Loans 0.4 3.2 Current tax liabilities (net) - Other Financial Assets 4.9 2.1 Provisions 1.1 0.7 Other Current Assets 105.8 68.4 Total Assets 863.5 777.0 Total Equity & Liabilities 863.5 777.0 16 Standalone Cash Flow Particulars (INR CRS.) Mar-22 Mar-21 Cashflow from Operating Activities: Net Profit Before Tax 36.1 -9.2 ▪ Higher working capital requirements led to a negative Adjustments for: Non CashItems / Other Investment or Financial Items 27.2 42.3 cash flow from operations Operating profit before working capital changes 63.3 33.1 Changes in working capital -76.0 21.8 Net cash flow from Financing activities: ▪ Increase in short term borrowings led Cash generated from/(used in) operations -12.7 54.9 to an increase in net cash from financing activities Direct taxes paid (net of refund) -4.1 -1.0 Exceptional Items -6.6 -12.6 Net Cash from Operating Activities -23.3 41.3 Net Cash from Investing Activities 6.9 15.2 Net Cash from Financing Activities 13.6 -31.0 Net Increase/(Decrease) in Cash and Cash equivalents -2.8 25.4 Add: Cash & Cash equivalents at the beginning of the period 46.0 20.6 Cash & Cash equivalents at the end of the period 43.2 46.0 17 About Us Incorporation: Multi-National Presence : Across 8 countries such as India, Indonesia, Founded in 1987, Pearl Global is a leading apparel Bangladesh, Vietnam, USA, Spain, Hong Kong manufacturer offering end-to-end sustainable and U.K. solutions to the fashion industry Robust Design Team: Diversified Product Offering: Knits, Wovens, Denim, Outerwear, Our efficient team of 75 Designers across 4 Activewear & Athleisure Countries leads the journey from a concept to the finished product Manufacturing Capability: Marquee Clientele: Well-diversified and de-risked Kohl’s, Macy’s, Tommy Hilfiger, Gap, Old manufacturing base with 22 Navy, NEXT, Nordstrom among others manufacturing units spread across 8 countries Total capacity to manufacture around 75 million units per year Everything from Fibre to Fashion What We Do C Customized Solutions: The biggest pillar for our operations is providing customized solutions as per your need Strong Analytics: Facts driven analytics help us drive insights and conclusion for projects Infrastructure: State-of-the art renewable technology has been installed in all factories for faster work Planning and Execution: Customized solutions are carefully prepared with the help of in-house experts, R&D Workforce: Over 32,000 skilled workers ensure that your deliveries are done on-time without compromising quality Sustainable Care: To provide sustainable solutions,we have adopted the world’s leading processing standard for textiles made from organic fibre Performance Management: We strategize, plan, perform and monitor processes at every stage to ensure thoroughness Strategically Established Design Units: Presence Across Hong Kong, USA (New York), UK, Spain, India, Vietnam, Indonesia & Bangladesh 20 Our Journey • Established import and • 2014: Incorporation of • 1987: Pearl Global Commencement of Acquisition of Alpha distribution in the U.S.A. Pearl Bangalore started operations Prudent, Bangladesh unit in BD and U.K. • 2016: Commencement of • 1998: Established • Establishment of Norp1 in operations of Pearl 1 in presence in Hong Kong Bangladesh Chennai 2017 2021 2007-11 2002 2022 2014-16 2020 1987-98 2004 Commencement of • Inaugurated own Commencement of • 2007: Pearl Global was operations at corporate office in Indonesian operations listed at the BSE and NSE Vietnam Indonesia • Acquisition of land • 2011: Expanded expansion in Indonesia Bangladesh operations with operations Norp2 21 Our Vision, Mission & Goal Vision Mission Goal To be the Global Leader To continuously exceed To innovate the way Fashion is providing end-to-end supply customer and shareholder created across the Globe chain solutions to the fashion expectations by strategically industry driving sustainability, technological advancement, and innovative solutions delivered with the best talent in the industry 22 Product Portfolio Across Categories Gender wise Split Woven Knits Dress, Tops, Top, Shirt, Long Shirt, Dress Skirts, Sweater ,T Shirt, Women Sleepwear, Huddie, legging Jogger Shirt, Sleepwear, T Shirts, Hoodies Men Pyjama, Polo Tshirt Boys Shirts T Shirt, 2 Pc Set PRODUCTWISE SPLIT (Mn Pieces)* T Shirts, Skirt, Girls Girls Top, Skirts, Dresses Dress, Romper, Tank Top 45% 55% Toddlers Romper Woven Knit *As of 31stMarch FY22 24 Global Presence Across 8 Countries UNITED KINGDOM SPAIN USA(NEWYORK) DESIGN & SALESACROSS BANGLADESH HONGKONG 8COUNTRIES MANUFACTURING SET UPACROSS 4 VIETNAM COUNTRIES INDIA (GURGAON, CHENNAI, BANGALORE) INDONESIA 26 Manufacturing Facilities No of Location Annual Capacity Specialization Units Woven and Knit products including women’s fashion wear, men’s India 8 28mn pieces p.a. wear and kid’s wear. South factories make women’s tops and dresses Bangladesh 8 45mn pieces p.a. Woven and Knitted tops and bottoms for men, women and kids Multiple products including outerwear and jackets including down Vietnam 3 4.5mn pieces p.a. jackets, woollen jackets & coats, seam-sealed jackets, puffers, parka’s, blazers, anoraks, swim trunks and synthetic bottoms Women's professional wear, performance wear, activewear, Woven Indonesia 2 3mn pieces p.a. tops & dresses, sleepwear and loungewear Geographical Revenue Split (INR CRS.) Design and Office Studios Offices 2,714 CAGR +16.1% Hong Kong Design Studio and Sales Office 934 1,757 1,685 Spain Denim jackets, denim bottoms and more 1,496 1,491 840 Jerseys, wovens, denims, outerwear, sleepwear, loungewear, 825 UK 711 771 beachwear and kidswear 1,780 Market intelligence for knits, wovens, denim, outerwear, New York activewear, sleepwear/ loungewear and childrenwearcategory 785 917 860 720 India Rest Of The World * No of units and Annual capacity includes own manufacturing and partnership FY18 FY19 FY20 FY21 FY22 27 Key Clientele Large Format Stores High Fashion Speciality Retailers 28 Pioneers of Our Vision Mr. Deepak Seth Mr. Pulkit Seth (Chairman) (Vice-Chairman & Non-Executive Director) 30 The Leaders Behind Our Mission Pallab Banerjee Ratna Singh Sanjay Gandhi Managing Director Group CHRO Group CFO 31 Core Team Rajesh Ajwani Dr.Mahesh Seth Pankaj Bhasin Sundeep Chatrath GurusankarGurumoorthy Sanjay Sarkar Commissioner Indonesia Vice President –US CEO-Woven India CEO-Knits India CEO-Vietnam Country Director -Bangladesh Operations Vikas Mehra Jeff Kreindel Amy Rosenberg David Ayala Jo Hales CEO-Bangladesh Executive Vice President -US VP Merchandising -US Global Creative Director -US Senior Vice President UK 32 Government Initiatives 1 2 3 4 5 Extension of RoSCTL Notification of Free Trade PLI Scheme MITRA Scheme scheme RoDTEP rates Agreement • Scheme was approved with a total outlay of Rs • Under the scheme, • The extension is likely • The announcement is • With the IndAUS 107bn 7 mega parks will be to benefit exporters of likely to benefit the ECTA, India’s exports set up in the Apparel/Garment and entire value chain of of textiles and • Likely to provide country over the Home Textiles products textiles since apparels are incentives,~3-11% on upcoming three since the extension till exporters can now expected to go up to incremental revenue years with plug and 31stMarch 2024 claim rebate either US $ 1100 mnin the yoyfor 5 years on play facilities in a ensures a stable and under RoSCTL or next 3 years bid to create global predictable policy RoDEPtheme. greenfield as well as champions in regime for three years. brownfield investments exports 34 China +1 Provides Huge Opportunity For Textiles & Apparel Players Covid-19 and geopolitical situations have led to redistribution of global trade shares and recalibration of sourcing partners China +1 provides enormous opportunity to India Textiles Industry to regain a leadership position as a top exporting economy Capex and Investments to pick-up in the sector; productivity and industry competitiveness to improve India Textiles exports expected to grow at ~11% CAGR to reach $ 65 bn by 2026 from pre-covid level of $ 36 bn in 2019 With favorable India Demographics and Industry Dynamics, India is capable to position itself as a Global Textiles hub With the improvement in domestic economy and increase in exports, Domestic Production is expected to increase substantially to meet the demand “China+1” Strategy will be beneficial for Global Textile Industry specifically for Indian Textiles 35 Our Unique Propositions Multinational Presence Robust Design Team Shift Towards Asset Light Model Strong Customer Relationship • 21 manufacturing facilities • Fashion trend analysis by • Partnership model to drive spread across 4 countries. talented design personnel next leg of growth • Long term relationship with well known large s h • Present in 2 out of 4 • Modern unique • No lead time retail format stores t g supply chain areas n techniques like 3D CAD (Kohl’s, Macy’s, Target e r t rendering, 3D Optitex, CLO • Improved return ratios Australia and others) and S y • End to End supply chain and Browzwear used to going ahead specialised retail format e K provider craft the final product stores (Bershka, Gap, Old Navy and others) • Ability to do Concept + Store e m o Increasing wallet share Expanding to new Providing new product c t Acquiring new customers u from existing customers geographies categories O 36 Synergies From Partnership Model Partner Pearl Global Synergies • Working capital investment • Capex and Labour expenses Faster Turnaround Time • Designing • Design sharing with the buyer • Appoints Industrial Engineer Capacities in proximity to • Responsible for optimum • Contract on per piece basis supply chain area capacity utilization at partner facility • Fabric procurement Asset Light Model Industrial Engineer • Ensures Compliances Better Return Ratios • Monitors production processes 37 Robust Risk Mitigation Practices Social & Ethical Customer Product Raw Material Currency Cashflow Compliance Retention & Growth Quality Prices and Supply Chain Fluctuation Non-Compliance Debt Repayment & servicing o Direct Relationship with o Quality systems & o Early projection and o Natural hedge in all o Robust internal control o Revised strategy –asset all customers practices aligned closely booking of raw materials overseas operations and compliance system light model-partner with with customer’s o Continuous monitoring of expectations o Strategic and transparent o India-export-forward o Regular monitoring and factory rather own set up the customer’s market relationship with key cover implementing immediate o Constant touch with supplier corrections o Limit capex and fund Payment Security customer representatives o Import-only minimal through internal o Credit Assessment before to facilitate process Inventory procurement-no big o Onboarding of customers resources onboarding a new improvements o All production is against impact only after ensuring customer o Customers certified Pearl confirmed sale orders complete compliance o Ensure collection on time standards o Preshipment & post associates to certify the o Periodic review or physical shipment coverage products on their behalf count & utilization of stock 38 Way Forward and Strategy For Growth New Customer Optimum Utilization Of Acquisition Existing Facilities Growth Through Geographical Partnership Facilities Expansion Automation Of PLI Scheme To Act As A Growth Engine Facilities 39 Consolidated Profit And Loss Statement Profit and Loss (INR CRS.) FY22 FY21 FY20 FY19 FY18 Revenuefrom Operations 2,713.5 1,490.9 1,685.1 1,757.5 1,496.0 Cost of Goods Sold 1,510.6 768.9 998.2 1,079.9 1,016.5 Gross Profit 1,202.9 722.0 686.9 677.6 479.5 Gross Profit Margin 44.3% 48.4% 40.8% 38.6% 32.1% Employee Cost 458.6 325.3 393.3 360.0 237.3 Other Expenses 603.7 336.1 211.6 217.4 196.1 EBITDA 140.6 60.6 82.1 100.2 46.2 EBITDA Margin 5.2% 4.1% 4.9% 5.7% 3.1% Depreciation* 48.3 44.1 42.0 25.9 22.6 Other Income 33.5 23.5 43.7 51.2 46.8 EBIT 125.7 40.0 83.8 125.5 70.3 EBIT Margin 4.6% 2.7% 5.0% 7.1% 4.7% Finance Cost 46.6 41.3 52.5 42.5 37.9 PBT before exceptional items 79.1 -1.3 31.2 82.9 32.4 Exceptional Item Gain / (Loss) 6.7 12.7 -0.7 17.2 8.2 PBT 85.8 11.4 30.6 100.2 40.6 PBT Margin 3.2% 0.8% 1.9% 4.7% 2.2% Tax 15.7 -6.1 9.5 15.8 9.3 PAT 70.1 17.5 21.1 84.3 31.3 PAT Margin 2.6% 1.2% 1.2% 4.8% 2.1% EPS 31.5 8.0 9.95 31.06 11.12 *includes leasehold amortization from FY20 onwards 41 Consolidated Balance Sheet Assets (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non -Current Assets 533.9 533.2 543.1 434.6 387.2 Total Equity 614.9 530.2 500.6 469.9 395.1 Property Plant & Equipment 258.2 213.8 221.9 243.6 179.0 Share Capital 21.7 21.7 21.7 21.7 21.7 CWIP 15.2 47.0 36.1 7.8 8.4 Reserves & Surplus 577.3 495.6 478.9 448.2 373.5 Goodwill 18.0 17.6 17.9 19.0 18.2 Non Controlling Interest 15.9 12.9 13.0 11.5 9.7 Intangible assets 0.7 0.5 0.8 1.1 1.3 Non-Current Liabilities 254.8 244.5 225.4 140.9 105.6 Right of use asset 111.7 98.0 107.3 - Financial Liabilities Investment Properties 59.0 60.5 73.9 74.3 75.1 (i) Borrowings 123.8 124.6 99.8 81.1 49.0 Investment -Others 49.9 47.4 30.8 32.8 31.1 (ii) Lease Liabilities 71.6 65.3 69.9 - - Loans 1.3 21.7 24.5 22.9 21.0 (iii) Other Financial Liabilities 2.4 1.4 2.5 2.2 1.6 Other Financial Assets 11.0 12.2 13.6 14.0 21.9 Provisions 24.3 23.1 20.8 21.1 18.8 Deferred Tax Assets (Net) 0.9 4.7 0.9 1.0 3.2 Other Non Current Liabilities 30.1 30.1 30.0 33.1 36.2 OtherNon -CurrentAssets (Net) 2.1 2.1 7.7 13.5 2.1 Deferred Tax Liabilities 2.6 0.0 2.5 3.4 0.0 Other Non Current Tax Assets (net) 6.0 7.7 7.6 4.5 25.9 Current Liabilities 911.0 519.3 513.3 479.2 426.3 Current Assets 1,246.7 760.8 709.2 666.9 549.5 Inventories 539.6 278.8 263.9 236.3 210.0 Financial Liabilities Financial Assets (i) Borrowings 440.3 199.9 257.2 234.9 213.5 (i)Investments 5.3 7.5 6.9 0.0 6.3 (ii) Trade Payables 438.7 246.8 181.1 181.1 109.3 (ii) Trade receivables 366.6 242.2 220.4 221.8 142.0 (iii) Lease 8.8 8.6 8.1 0.0 0.0 (iii) Cash and cash equivalents 116.9 94.7 88.1 94.3 92.3 (iv) Other Financial Liabilities 9.0 54.6 57.2 51.6 80.2 (iv) Bank balances 32.9 22.3 21.7 17.1 4.4 Other Current Liabilities 9.5 7.4 8.6 8.7 6.2 (v) Loans 34.6 17.1 17.3 16.6 3.3 Current tax liabilities (net) 2.2 0.9 0.6 2.2 16.5 Other Financial Assets 5.9 0.9 1.1 16.9 20.4 Provisions 2.4 1.1 0.7 0.8 0.6 Other current assets 144.9 97.3 Total Assets 1,780.6 1,294.0 1,252.3 1,101.5 936.7 Total Equity & Liabilities 1,780.6 1,294.0 1,252.3 1,101.5 936.7 42 Consolidated Cash Flow Particulars (INR CRS.) FY22 FY21 FY20 FY19 FY18 Net Profit Before Tax 85.8 11.4 31.2 82.9 32.4 Adjustments for: Non -Cash Items / Other Investment or Financial Items 76.2 61.3 93.2 51.5 42.6 Operating profit before working capital changes 162.1 72.6 124.5 134.5 75 Changes in working capital -239.2 38.1 -44.4 -13.8 -28 Cash generated from/(used in) operations -77.1 110.8 80.1 120.7 47 Taxes paid (net of refund) -7.7 -3.5 -17.1 -28.7 5.2 Exceptional Items -6.7 -12.7 -0.7 -17.2 -8.2 Net Cash from Operating Activities -91.5 94.6 62.3 74.8 44.0 Net Cash from Investing Activities -39.6 -26.0 -84.5 -58.6 -58.5 Net Cash from Financing Activities 153.3 -61.9 14.6 -14.1 30.8 Net Decrease in Cash and Cash equivalents 22.1 6.6 -6.3 2.1 5.9 Add: Cash & Cash equivalents at the beginning of the period 94.7 88.1 94.3 92.3 86.4 Cash & Cash equivalents at the end of the period 116.9 94.7 88.1 94.3 92.3 43 Standalone Profit and Loss Statement Profit and Loss (INR CRS.) FY22 FY21 FY20 FY19 FY18 Revenuefrom Operations 933.8 771.4 825.3 840.3 710.8 Cost of Goods Sold 428.1 473.1 399.6 417.1 348.6 Gross Profit 505.7 298.3 425.7 423.2 362.1 Gross Profit Margin 54.2% 38.7% 51.6% 50.4% 50.9% Employee Cost 152.2 107.8 150.2 131.9 119.6 Other Expenses 312.5 192.5 253.6 249.9 244.3 EBITDA 41.0 -2.0 22.0 41.3 -1.7 EBITDA Margin 4.4% -0.3% 2.7% 4.9% -0.2% Depreciation* 17.6 18.1 17.6 12.9 12.7 Other Income 32.0 24.1 34.6 29.1 47.1 EBIT 55.4 16.6 38.9 57.6 32.6 EBIT Margin 5.9% 2.2% 4.7% 6.9% 4.6% Finance Cost 25.9 25.8 28.0 29.7 25.9 PBT before exceptional items 29.5 -21.8 9.7 29.0 -1.3 Exceptional Item Gain / (Loss) 6.6 12.6 1.2 2.8 8.1 PBT 36.1 -9.2 10.9 31.9 6.8 PBT Margin 3.9% -1.2% 1.3% 3.8% 1.0% Tax 8.9 -10.0 5.9 10.4 4.1 PAT 27.2 0.8 5.0 21.5 2.6 PAT Margin 2.9% 0.1% 0.6% 2.6% 0.4% EPS 12.5 0.4 2.3 9.9 1.2 *includes leasehold amortization from FY20 onwards 44 Standalone Balance Sheet Assets (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (INR CRS.) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non -Current Assets 344.8 360.6 377.8 347.2 348.5 Total Equity 343.5 313.8 305.9 316.2 298.6 Property Plant & Equipment 124.1 128.5 131.7 131.5 125.6 Share Capital 21.7 21.7 21.7 21.7 21.7 CWIP 0.0 0.4 2.3 1.6 0.5 Reserves & Surplus 321.8 292.1 284.2 294.5 276.9 Intangible assets 0.7 0.5 0.8 1.1 1.3 Non-Current Liabilities 148.9 151.3 125.7 75.3 84.2 Right of use asset 21.7 29.0 26.1 Investment Properties 59.0 60.5 73.9 74.3 75.1 Financial Liabilities Investments 126.4 119.1 118.7 118.6 131.3 (i) Borrowings 83.3 82.0 84.4 31.9 39.5 Loans 0.1 4.9 5.1 4.7 4.5 (ii) Lease Liabilities 21.5 28.4 - - - (iii) Other Financial Liabilities 2.4 1.4 0.0 2.2 1.6 Other Financial Assets 6.5 7.5 9.4 8.4 4.4 Provisions 9.3 9.4 8.8 7.1 8.6 Deferred Tax Assets (Net) 0.0 3.9 0.0 0.0 1.1 Other Non Current Liabilities 30.1 30.1 30.0 30.8 34.6 Other Non Current Assets (Net) 0.5 0.5 4.7 3.9 3.2 Deferred Tax Liabilities 2.3 0.0 2.5 3.4 0.0 Other Non Current Tax Assets (net) 5.7 5.6 5.0 3.0 1.3 Current Liabilities 371.1 311.9 282.4 297.3 270.3 Current Assets 518.7 416.3 336.2 341.7 304.6 Inventories 221.8 132.7 147.9 135.1 120.0 Financial Liabilities Financial Assets (i) Borrowings 176.3 133.3 152.5 161.8 182.9 (i) Investments 5.3 7.5 6.9 0.0 6.3 (ii) Trade Payables 178.8 161.7 118.8 105.1 71.0 (ii) Trade receivables 115.9 145.2 97.4 111.3 87.5 (iii) Lease 3.9 3.8 2.4 0.0 (iii) Cash and cash equivalents 43.2 46.0 20.6 22.3 20.6 (iv) Other Financial Liabilities 2.4 5.3 0.0 19.4 10.1 (iv) Bank Balances 21.4 11.1 9.3 14.5 4.3 Other Current Liabilities 8.5 7.1 8.2 8.4 5.8 (v) Loans 0.4 3.2 3.3 3.5 3.3 Current tax liabilities (net) - - 0.0 1.9 - Other Financial Assets 4.9 2.1 0.9 15.7 20.4 Provisions 1.1 0.7 0.6 0.7 0.5 Other Current Assets 105.8 68.4 49.9 39.1 42.2 Total Assets 863.5 777.0 714.0 688.9 653.1 Total Equity & Liabilities 863.5 777.0 714.0 688.9 653.1 45 Standalone Cash Flow Particulars (INR CRS.) FY22 FY21 FY20 FY19 FY18 Net Profit Before Tax 36.1 -9.2 10.9 31.9 6.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 27.2 42.3 33.7 20.5 27.4 Operating profit before working capital changes 63.3 33.1 44.6 52.4 34.1 Changes in working capital -76.0 21.8 -22.9 -15.5 -56.7 Cash generated from Operations -12.7 54.9 21.7 36.9 -22.6 Taxes paid (net of refund) -4.1 -1.0 -8.7 -7.4 2.4 Exceptional Items -6.6 -12.6 -0.7 -17.2 -8.2 Net Cash from Operating Activities -23.3 41.3 12.3 12.3 -28.4 Net Cash from Investing Activities 6.9 15.2 -32.1 22.6 7.2 Net Cash from Financing Activities 13.6 -31.0 18.5 -47.5 23.5 Net Decrease in Cash and Cash equivalents -2.8 25.4 -1.7 1.8 -2.4 Add: Cash & Cash equivalents at the beginning of the period 46.0 20.6 22.3 20.6 23.0 Cash & Cash equivalents at the end of the period 43.2 46.0 20.6 22.3 20.6 46 Approach to Sustainability We believe in the Triple bottom approach : People, Planet and Profit Environmental sustainability forms one of the key pillar of our social responsibility. To attain the highest level of sustainability standards, we have the following measures in place tofulfil our responsibility asaclothing vendor ✓ A framework that enables to meet environmental performance expectations, ensure regulatory compliance, minimize environmental risks and establish & implement long term environmental strategies ✓ A measuring tool that helps us map. Plan and implement meaningful improvements that protect the well-being of factory workers, local communities and the environment ✓ Adopted the world’s leading processing standard fortextiles made from organicfibers As a sustainable clothing manufacturer, we are committed to seeking new and innovative ways to reduce our carbon footprints, one such initiative towards this goal is the adoption of renewable energy in our facilities Sustainability Is An Integral Part Of Our Processes Ongoing sustainable initiatives Ozone ECO FRIENDLY Eco Friendly Recycled Poly Stone, Longer Life Span Reduce Water Consumption Replacement Of PumicStone With No Residue Magic Box Environmental Impact Measurement Eco Friendly Software to monitor the impact of garment Reduce Water, Chemical finishing processes & Energy Consumption Solar Power Generation ETP/WTP/STP Recycle & Re-use Water Implemented in Chennai. Planned for other facilities Treatment Solution C.W.M.U UvFiltration Plant Central Water Facilitate recycle & re-use of water in laundry, Monitoring Unit Toilets Gardening, Fire Pump Laser PNG BOILER Eco Friendly Innovative, Robust & Save’s PNG run boilers for reduced emissions Water, Chemical & Energy 49 Protecting the Future We believe in the long-term preservation of our resources ✓ To create a circular economy by eliminating waste & utilizing resources 50 Awards 2006-2008 2008-2010 2010-2011 • 2008-09: Highest Exports by Young • 2006-07: Highest Export in woven • 2010-11: Highest Exports –Woven Entrepreneur -1stPosition to Pulkit garments Seth Garments-Winner • 2007-08: Highest Export in woven • 2009-10: Highest Exports in Woven Graments-1stPosition & Highest garments Exports By young entrepreneur -1st Position to Mr. Pulkit Seth 2011-2012 2012-2015 2020-2023 • 2012-13: Highest Exports BY Young • 2011-12: Highest Exports Woven • 2022-23: Recognized as one of the Entrepreneur –Winner-Mr. Pulkit Garments-Winner Seth, Vice Chairman, Pearl Global best organizations for women. • 2015-16 : Highest Global Exports • 2020-21: Asia One Most Influential (Above 100 Cr and uptoRs.500 Cr) Young Leaders –Mr. Pulkit Seth 1stPosition 51 For further information, please contact Company : Investor Relations Advisors : CIN: L74899DL1989PLC036849 CIN: U74140MH2010PTC204285 Mr. Sanjay Gandhi - Group CFO Ms. Brinkle Shah Jariwala / Ms. Khushbu Shah sanjay.gandhi@pearlglobal.com brinkle.shah@sgapl.net / khushbu.shah@sgapl.net +91 9619385544 / +91 9820601181 www.pearlglobal.com www.sgapl.net