RANEENGINE

Registered Office Tel: 91 44 2811 2472 “Maithri” URL: www.ranegroup.com 132, Cathedral Road, Chennai 600 086, India. CIN: L74999TN1972PLC006127 Rane Engine Valve Limited // Online submission // REVL / SE / 044 / 2022-23 October 31, 2022 BSE Limited National Stock Exchange of India Ltd. Listing Centre NEAPS Scrip Code: 532988 Symbol: RANEENGINE Dear Sir / Madam, Sub: Earnings Presentation - Un-Audited Financial Results for the half year ended September 30, 2022 [ Ref: Our letter no(s). REVL/SE/042/2022-23 dated October 26, 2022 and REVL/SE/043/2022- 23 dated October 27, 2022 This is with reference to the aforementioned letters intimating Earnings Conference Call scheduled on Monday, October 31, 2022 at 14:00 hours (IST), inter alia, to discuss the un- audited financial results for the half year ended September 30, 2022. We enclose herewith copy of the Earnings presentation proposed to be made thereat, to the analyst and investors. The same is also being made available on the website of the Company, www.ranegroup.com. We request you to take the above on record and note the compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). Thanking you. Yours faithfully, For Rane Engine Valve Limited Vivekanandaa M Secretary Encl: a/a Rane Group Earnings Presentation | H1 FY23 1 Table of Contents H1 FY23 Financial & Operational Performance Rane Group Overview 2 Rane Group H1FY23 Financial & Operational Performance 3 Vision and Growth Strategies To become the Preferred Trusted Supplier of Safety & Critical Auto Components Strate gic p illars o f gro w th 1 3 2 4 Strengthen Increased Focus Domestic on Aftermarket Leadership Increased mix of New Technology & International Product Revenues Introductions 4 Rane Group Business Drivers Business Drivers › 93%+ of revenue comes from powertrain agnostic products › Continued dominance on domestic market across major products › Increasing export mix for steering & linkages, valve train components and occupant safety products › Renewed focus on Aftermarket segment leveraging group level synergy › Continuous introduction of new product and new technology leveraging global partnerships and strong in- house engineering capabilities › Increasing efficiencies across manufacturing facilities through operational excellence, digitalisation, etc. 5 New Business Wins (H1 FY23) RANE BRAKE LINING RANE ENGINE VALVE • Won orders worth Rs. 35 Cr from various • Won ordersworthRs. 10 Cr from variouscustomers customers RANE (MADRAS) RANE BRAKE RANE ENGINE LINING VALVE ZF RANE RANE NSK ZF RANE RANE NSK • Won orders worth Rs. 240 Cr for Occupant RANE (MADRAS) • Won new business worth Rs. 75 Cr for safetyproducts Manual Steering Column from various • Won orders worth Rs. 155 Cr for Steering • Won Rs. 105 Cr orders from various domestic and customers internationalcustomersforSteeringproducts gear products 6 We continue to target higher than the industry growth Industry Performance Review (H1 FY23) Passenger Vehicle commercial Vehicle Farm Tractor 2-Wheeler Production YoY Growth# 36% 56% 5% 20% in % Rane Group Sales Growth YoY 34% 71% 15% 34% in % (India OEM) Rane Group Revenue Split * 61% 26% 7% 3% (India OEM) • Lower growth than the • Higher share of business • Performance is better • Better performance is industry due to lower and higher growth with than industry due to driven by higher offtake growth of few served served models/customers increase in power steering of valve train products models penetration  Easing of semiconductor shortage drives demand from Indian PV customers  Experiencing demand up-cycle in the CV segment  Seasonally low quarter for Farm Tractor segment Market Commentary  Demand for our products remained favourable in international markets albeit growing signs of slowdown due to geo political issues and monetary tightening  Seeing plateauing of commodity prices and expect some softening in the coming quarters 7 Group Aggregate Sales (H1 FY23) Total Revenue (Rs cr.) › Total Revenue increased by 33% from Rs. 2,485.4 Cr in H1 FY22 to Rs. 3,306.2 Cr in H1 FY23 – Revenue from Indian OE customers grew 36% supported by strong growth across 3,306.20 33.0% vehicle segments 2,485.40 YoY growth – Revenues from International customers increased 25% driven by higher off-take across products H1 FY22 H1 FY23 – Revenue from Indian aftermarket segment grew 31% Group Aggregate Sales (H1 FY23) BY PRODUCT (%) BY MARKET (%) BY VEHICLE SEGMENT (%) FT, 5 Others, 1% 2W/3W, SE Light Metal Castings, 7% & Others, 7 Intl Aftermarket CV, 25 Valve Train Components, and OEM, 23 Steering & India OEM 7% Suspension, &OES, 68 Friction Materials, 9% 63% India Aftermarket Occupant Safety, 13% , 9 PV, 63 8 RHL consolidated – Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 2.6% 7.3% 39.4% 76.8% 17.8% 1,704.9 5.8% 43.9 1,223.1 124.8 YoY growth YoY growth 3.0% YoY growth 70.6 37.3 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 39.4% from Rs. 1,223.1 Cr in H1 FY22 to Rs. 1,704.9 Cr in H1 FY23 › EBITDA increased by 76.8% from Rs. 70.6 Cr in H1 FY22 to Rs. 124.8 Cr in H1 FY23 – EBITDA margin increased 155 bps supported by higher volumes and improved operational performance. Higher commodity prices limited the profitability improvement. › PAT increased by 17.8% from Rs. 37.3 Cr in H1 FY22 to Rs. 43.9 Cr in H1 FY23 9 Rane (Madras) Limited H1FY23 Financial & Operational Performance 10 RML - Operational Performance Review (H1 FY23) Business Drivers Business Split (H1 FY23) – RML India › Strong order book pipeline for Steering and Linkages products BY MARKET (%) › Financial turnaround of Light Metal Castings India business with increasing capacity India Intl OEM, 26 OEM&OES, utilization and operational improvements 62 › Aftermarket segment primed to grow aggressively with new product introductions India Operational Highlights Aftermarket, 12 › Certified as a ‘Great Work place’ by GPTW Institute, India – for 5th consecutive year › Won the runner up award in Ashok Leyland's National Supplier Samrat competition in BY VEHICLE SEGMENT (%) FT, 14 the Proprietary category Others 1 › Received award from Tata Motors, Pantnagar for “Energy champion of the year CV, 20 2021-22” › Light Metal Castings India received an Award from Bosch for their performance in the export of Steering Housing Castings › LMCA has won the award for Excellence in Aluminum Die Casting in the category of PV, 65 1-10 Lbs from the North American Die Casting Association (NADCA) 11 RML Standalone – Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 3.5% 8.8% 45.4% 67.5% 194.2% 1,038.0 7.7% 91.7 35.9 713.7 YoY growth YoY growth 1.7% YoY growth 54.8 12.2 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 45.4% from Rs. 713.7 Cr in H1 FY22 to Rs. 1,038.0 Cr in H1 FY23 – Sales to Indian OE customers grew 60% supported by strong demand across vehicle segments. – Sales to International customers grew 27%. Demand from International customers remained strong. – Sales to Indian Aftermarket customers grew 25%. › EBITDA increased by 67.5% from Rs. 54.8 Cr in H1 FY22 to Rs. 91.7 Cr in H1 FY23 – EBITDA margin increased by 116 bps supported by higher volumes and improved operational performance › PBT increased by 194.2% from Rs. 12.2 Cr in H1 FY22 to Rs. 35.9 Cr in H1 FY23 12 RML Consolidated – Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 2.2% 5.6% 43.8% 94.5% 17.5 118.4% 1,151.0 4.1% YoY growth 64.0 YoY growth YoY growth 800.4 32.9 -3.2 (0.3%) H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 43.8% from Rs. 800.4 Cr in H1 FY22 to Rs. 1,151.0 Cr in H1 FY23 – Sales of the US subsidiary grew with the improved off-take from customers. However the demand environment in the US remains challenging › EBITDA increased by 94.5% from Rs. 32.9 Cr in H1 FY22 to Rs. 64.0 Cr in H1 FY23 – Better operational performance and higher volumes helped improve profitability › PAT declined by 118.4% from Rs. 17.5 Cr in H1 FY22 to Rs. (3.2) Cr in H1 FY23 – There was a one-off income of USD 5 Mn on account of US Federal stimulus benefits in H1 FY22. 13 Rane Engine Valve Limited H1FY23 Financial & Operational Performance 14 REVL- Operational Performance Review (H1 FY23) Business Split (H1 FY23) BY MARKET (%) Business Drivers India International OEM, 23 OEM&OES, 58 › 44% of revenue generated from EV insulated segment › Financial turnaround underpins › Higher capacity realization and new business ramp up International Aftermarket , 12 › Increasing mix of exports and EV insulated segment India › Manufacturing cost reduction Aftermarket, 7 BY VEHICLE SEGMENT (%) CV, 14 FT, 9 Operational Highlights › Certified as a ‘Great Work place’ by GPTW Institute, India › Ramp up in hollow valve production PV, 28 2W/3W, SE, 49 15 REVL – Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 4.9% -3.2 35.1% 827.9% -8.9 64.5% (1.3%) 238.3 176.4 YoY growth 11.6 YoY growth YoY growth 0.7% 1.3 (5.0%) H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 51.3% from Rs. 176.4 Cr in H1 FY22 to Rs. 238.3 Cr in H1 FY23 – Sales to Indian OE customers grew 50% supported by strong demand across vehicle segments. – Export Sales grew 55%. Demand from International customers remained strong. – Sales to Indian Aftermarket customers grew 46%. › EBITDA increased by 827.9% from Rs. 1.3 Cr in H1 FY22 to Rs. 11.6 Cr in H1 FY23 – EBITDA margin improved by 417 bps due to improved operational performance, price recovery from customers and operational leverage on higher volume. › Loss reduced by 64.5% from Rs. (8.9) Cr in H1 FY22 to Rs. (3.2) Cr in H1 FY23 16 Rane Brake Lining Limited H1FY23 Financial & Operational Performance 17 RBL- Operational Performance Review (H1 FY23) Business Split (H1 FY23) BY MARKET (%) Intl OEM & Business Drivers Aftermarket, 4 India › OEM&OES, 61 Market leader in Passenger Vehicle segment and increased penetration in two wheeler segment India › Dominant presence in Aftermarket segment, which accounts for 35% of sales Aftermarket, 35 › Expanding International Aftermarket business › Robust operational performance BY VEHICLE SEGMENT (%) Operational Highlights 2W/3W, Rail, FT, 1 Others, 14 › Won Best Supplier Award in Friction category from Brakes India Pvt. Ltd. › Won 1st prize in National level QC Convention conducted by ACMA. CV, 31 › Certified as a ‘Great Work place’ by GPTW Institute, India – for 6th consecutive year PV, 54 18 RBL – Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 4.3% 9.2% 9.5% 27.9% 23.3% 3.2% 71.8% 286.6 224.1 26.3 12.3 YoY growth 21.3 YoY growth YoY growth 7.1 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 27.9% from Rs. 224.1 Cr in H1 FY22 to Rs. 286.6 Cr in H1 FY23 – Sales to OE customer grew 36% supported by strong demand across vehicle segments – Sales to Aftermarket customers grew 93% › EBITDA increased by 23.3% from Rs. 21.3 Cr in H1 FY22 to Rs. 26.3 Cr in H1 FY23 – EBITDA margin decreased by 34 bps due to higher commodity price and unfavourable mix. Higher volumes and improved operational performance helped partially mitigate the higher material cost. › PAT increased by 71.8% from Rs. 7.1 Cr in H1 FY22 to Rs. 12.3 Cr in H1 FY23 19 ZF Rane Automotive India Private Limited H1FY23 Financial & Operational Performance 20 ZRAI - Operational Performance Review (H1 FY23) Business Split (H1 FY23) BY MARKET (%) Business Drivers India Intl OEM & › OEM&OES, 62 Market upcycle in commercial vehicle segment aids growths in steering division Aftermarket, 33 › Occupant safety division benefits from evolving safety regulation in India › Approved under PLI scheme for localisation of inflator and webbing › India Introducing latest technology products from Joint Venture partner’s product Aftermarket, 5 portfolio BY VEHICLE SEGMENT (%) CV, 42 Operational Highlights › Certified as a ‘Great Work place’ by GPTW Institute, India PV, 58 21 ZF Rane Automotive India Pvt Limited (ZRAI) - Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 5.0% 10.0% 39.9% 67.1% 148..1% 871.3 8.4% 87.4 2.8% 43.6 622.7 YoY growth YoY growth YoY growth 52.3 17.6 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 39.9% from Rs. 622.7 Cr in H1 FY22 to Rs. 871.3 Cr in H1 FY23 – Revenue from steering gear products increased 61% supported by strong demand from commercial vehicle segment – Revenue from occupant safety systems grew 27% supported by strong offtake on domestic served customers and export customers › EBITDA increased by 67.1% from Rs. 52.3 Cr in H1 FY22 to Rs. 87.4 Cr in H1 FY23 – Favourable product mix and higher volumes helped improve margins › PAT increased by 148.1% from Rs. 17.6 Cr in H1 FY22 to Rs. 43.6 Cr in H1 FY23 22 Rane NSK Steering Systems Private Limited H1FY23 Financial & Operational Performance 23 RNSS - Operational Performance Review (H1 FY23) Business Split (H1 FY23) BY MARKET (%) Business Drivers India OEM&OES, 100 › Favourable share of business with key customer › Strong growth for Manual Steering Column product with new product introductions Operational Highlights BY VEHICLE SEGMENT (%) › Operates with optimal capacity utilization CV, 10 Others, 3 › Guduvancherry plant won the National Award for Excellence in Energy Management - 2022" at CII 21st Energy Efficiency Summit - 2022, New Delhi. PC, 87 24 Rane NSK Steering Systems Private Limited (RNSS) - Financial Performance Review (H1 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 3.3% 9.8% 2.0% 14.7% 7.9% 30.3% 755.0 21.7 64.5 7.9% YoY growth YoY growth YoY growth 15.2 59.4 658.1 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 › Total Revenue increased by 14.7% from Rs. 658.1 Cr in H1 FY22 to Rs. 755.0 Cr in H1 FY23 – Manual steering column business benefitted on account of upcycle in the CV segment – EPS business faced slower demand on served models due to semiconductor shortage › EBITDA decreased by 7.9% from Rs. 64.5 Cr in H1 FY22 to Rs. 59.4 Cr in H1 FY23 – Adverse product mix and increase in logistics cost impacted the profitability › PAT decreased by 30.3% from Rs. 21.7 Cr in H1 FY22 to Rs. 15.2 Cr in H1 FY23 25 Rane Group – One of the Leading Auto Ancillary Player GROUP SALES OF INR 5,313 CR (~USD 700 MN) Founded in 1929 and headquartered in Chennai, Rane Group is one of the STEERING AND SUSPENSION SYSTEMS preferred OE manufacturer and supplier for global auto majors 64% Rane (Madras) Ltd ZF Rane Automotive India Pvt Ltd. Rane NSK Steering Systems Pvt Ltd. The Group serves a variety of industry segments: Passenger Vehicles, Commercial Vehicles, Farm Tractors, Two-wheelers, Three-wheelers, Railways and Stationary 13% OCCUPANT SAFETY SYSTEMS Engines ZF Rane Automotive India Pvt Ltd. Manufactures Steering and Suspension systems, Friction materials, Valve train components, Occupant safety systems, Light metal casting products and provide 09% FRICTION MATERIAL COMPONENTS Rane Brake Lining Ltd. Connected mobility solutions. REVENUE BY MARKET (%) REVENUE BY VEHICLE SEGMENT (%) 07% VALVE TRAIN COMPONENTS Intl FT, 5 2W/3W, SE & Rane Engine Valve Ltd. Aftermarket India OEM Others, 7 and OEM, 22 & OES, 69 CV, 26 LIGHT METAL CASTING COMPONENTS 06% Rane Light Metal Castings America India Rane (Madras) Lts – Light Metal Aftermarket, 9 OTHERS 01% PV, 62 Rane Auto Parts Rane t4u Pvt Ltd. 27 Holding Structure Promoters Rane Holdings Ltd. (RHL) 47% Subsidiaries Joint Venture/Associate Rane (Madras) Ltd. (RML) ZF Rane Automotive India 72% Pvt. Ltd. (ZRAI) 49% Rane Light Metal Castings ZF Rane Occupants Systems Inc. (RLMCA) 100% Pvt. Ltd. (ZROS) 100% Rane Engine Valve Ltd. (REVL) 55% Rane NSK Steering Systems Pvt. Ltd. (RNSS) 49% Rane Brake Lining Ltd. (RBL) 50% Rane t4u Pvt. Ltd. (Rane t4u) 99% Listed Share holding as on 30 June 2022 28 Rane (Madras) Ltd. (RML) MA N U FA CTU R I N G P LA N T • Market leader in steering gear and steering linkage products in India. We have started catering to hydraulic products such as HSU and steering cylinders. • Best in class manufacturing facilities at Chennai, Mysore, Puducherry and Pant Nagar. • End to end testing facilities in house to validate the products’ functional, RudrapurPlant endurance and environmental parameters. Steering Gears PR ODUCTS Light Metal Steering and Light Metal Castings Castings India Linkage Business AMERICA Business Business Hyderabad Plant BollaramPlant:Fully equipped plant for Aluminium HPDC castings & Chennai Plant Hydraulic Pump EPAS –Pinion machining/sub-assembly line Light Commercial vehicle, Heavy H P o i u n s io in n g s Housings & H O o u u t s b in o g a s rd Hydraulic – Outboard S p a la d n a t s f i o va r A p l e u t m P i l n a i n u t m : F H ul P ly D e C q c u a ip s p ti e ng d s Commercial vehicle and Utility vehicles Manual Steering Suspension Pinion Housing Housing & machining/sub-assembly line segments Gears Components Puducherry Plant Luminaries Timing-Case Engine Cover Oil Sump EPAS –Pinion Mysore Plant Housing Tractor and Commercial vehicle segments, Gear Case and Hydraulic products Brake Housing Steering Linkages Hydraulic HVAC Valve Products Battery Transmission Applications Housing Housing Housing 29 Rane Engine Valve Ltd. (REVL) MA N U FA CTU R I N G P LA N T • Incepted In 1959, REVL manufactures valves and valve train components for various engine applications • Non Automotive applications such as power generation, marine, defence, locomotive, etc. • Comprehensive test laboratory for material characterisation, simulated test rigs and engine dynamometer test facility. Chennai Plant Hyderabad Plants (2) Small Valves for 2W and PC Small Valves for 2W and PC Medium Valves for Tractors and PC Medium Valves for PC, Industrial and CV PRODUCTS Guides, Tappets Tumakuru Plant Trichy Plant Medium Valves for CV and Farm Engine Valves Valve Guides Mechanical Tappets Tractors Small & medium Valves for 2W, PC Large & Extra Large Valves for and CV Industrial, Power Generation and Marine Applications 30 Rane Brake Lining Ltd. (RBL) MA N U FA CTU R I N G P LA N T • Established in 1964, RBL is a leader in Friction Products across OEM segments and suppliesproducts to over 15 countries • Technical collaboration with Nisshinbo Brakes Inc. and TMD Friction • Library of widely tested and approved formulations to suit diverse market / customer requirements. • State-of-the-art R&D center equipped with full scale inertia dynamometer, static mu-measurement and NVH study rig. PR ODUCTS Brake Linings Disc Pads Railways Brake Blocks Chennai Plant Hyderabad Plant Automotive Products: Brake linings, disc Automotive Products:Brake linings, clutch pads and clutch facings facings & sintered clutch buttons Railway products: Composite Brake Blocks Railway products: Composite brake blocks Trichy Plant Puducherry Plant Commercial Vehicle Clutch Facings Brake Pads Sintered Brake Pads Automotive Products:Disc Pads & Automotive Products: Disc pads, clutch Brake linings facings & CV Brake Pads Railway products : Composite Brake Blocks 31 ZF Rane Automotive India Private Limited - Steering Gear Division (ZRAI - SGD) Joint venture partnership with ZF Group, Germany. MA N U FA CTU R I N G P LA N T Steering Gear Division • Design, Development and Application capability for complete Hydraulic Power Steering system for all vehicles. • Advanced design tools for 3D modeling, simulation, FE analysis and CFD. • State-of-the-art testing facilities for strength, environment, noise, fatigue and durability tests to meet global standards Occupant Safety Division RudrapurPlant • Product range includes different types of airbags and latest seatbelt Steering Gears and Pumps technologies, Retractor and Anchor pretensioners, Emergency Locking Retractor (ELR), Load Limiters, Child Restraint Seat Belt, Driver Airbag, Passenger Airbag, Side Airbag and Curtain Airbags. • Extensive testing facilities for seat belts include Extraction and Retraction Force Testing Machine, Retractor Durability Tester, Hot & Cold Chamber, Salt spray chamber, ELR functional tester. Chennai Plant (3) • Equipped with Test lab to carry out testing as per National (IS/AIS), International Pump and Power Rack & Pinion division, (ECE/EEC/GS/VSCC), customer specifications and COP testing Occupant Safety Products PR ODUCTS TiruchirapallyPlant (2) Steering Gear Division Occupant Safety Division Fully integrated gear, Occupant Safety Products 32 Rane NSK Steering Systems Private Limited (RNSS) MA N U FA CTU R I N G P LA N T • Joint venture partnership with NSK, Japan. • State-of-art R&D test lab for validation of steering columns. • Manufacturing facilities across four locations in Chennai, Bawal, Rudrapur & Ahmedabad. • Design & Development capability for solid & energy absorbing columns. Development and application capability for EPS. RudrapurPlant Bawal Plant • Driver comfort, Passenger safety, Ergonomics and NVH requirements are kept as Manual Steering Columns Electronic Power Steering targets while designing steering system. • Comprehensive test laboratory for extensive research about column performance characteristic validation, strength and durability validation and NVH requirements. Gujarat Plant • Design team includes CAD & CAM application experts and software analysts. Electronic Power Steering Chennai Plant Manual Steering Columns PR ODUCTS 33 Rane Group Product Range for Passenger Vehicle Light Metal Casting Products Rane (Madras) Valve train Components › Manual Steering Pinion Housing Gears › Steering Linkages Engine Timing Case Cover › Suspension Engine Valves Components Outboard Housing › Light Metal Casting Products Occupant Safety Systems Steering & Suspension Systems Rane Engine Valve Suspension Seat Belts › Engine Valves Ball Joint Airbags Rane Brake Lining Outer Ball Joint › Brake Linings Inner Friction Materials › Disc Pads Ball Joint Brake Lining Power Rane NSK Steering Steering Pump Systems › Electric Power Disc Pad Steering Systems Rack & Pinion steering gear ZF Rane Automotive -Mechanical India Pvt Ltd. -Hydraulic › Hydraulic Power Upper Control Arm Steering systems Electric Power › Seat Belts Steering Columns Stabilizer Link › Airbags Lower Control Arm 34 Rane Group Product Range for Commercial Vehicle Rane (Madras) Steering & Suspension Systems › Light Metal Casting Products Manual Steering Gears Hydraulic Pump Housing › Steering Linkages › Hydraulic Cylinders Manual Steering › Column Light Metal Casting Products Occupant Safety Systems Rane Engine Valve Power Steering › Gear Seat Belts Engine Valves › Valve Guides Power Steering Pump Friction Materials Rane Brake Lining Brake Lining › Manual RCB Brake Linings Steering Gear › Brake Pads Disc Pad Drag Link Assembly Rane NSK Steering Systems › Manual Steering Tie Rod Assembly Valve train Components Column ZF Rane Automotive Hydraulic Cylinder Valve Guides India Pvt Ltd. (Twin/multi front axle › trucks) Hydraulic Power Steering Systems Engine Valves › Seat Belts 35 Rane Group Product Range for Farm Tractors Friction Materials Steering & Suspension Systems Rane (Madras) › Manual Steering Clutch Facings Gears › Steering Linkages Manual Steering Brake Lining › Column Hydraulic Cylinders Manual RCB › Hydrostatic Steering Steering Gear Unit Light Metal Casting Products › Light Metal Casting Products Timing Case Covers Hydrostatic Rane Engine Valve Steering Unit › Engine Valves › Valve Guides Power Steering Gear Rane Brake Lining › Brake Linings › Clutch Facings Drag Link Assembly Rane NSK Steering Systems Tie Rod Assembly › Valve train components Manual Steering Column Hydraulic Cylinder ZF Rane Automotive Valve Guides India Pvt Ltd. › Engine Valves Hydraulic Power Steering systems 36 Rane Group Product Range for Two/Three-Wheeler Friction Materials Rane (Madras) Disc pad › Light Metal Casting Products Light Metal Casting Products Rane Brake Lining Battery Box & Cover › Disc Pads Rane Engine Valve › Engine Valves › Valve Guides Valve train Components Valve Guides Engine Valves 37 Rane Group Product Range for Other Applications Friction Materials Sintered Brake Pads Railway Brake Block Rane (Madras) › Manual Steering Gears › Steering Linkages › Light Metal Casting Products Rane Engine Valve › Engine Valves › Valve Guides Steering & Suspension Systems Rane Brake Lining › Engine Valves Valve Guides Sintered Brake Manual Steering column Pads Valve train Components › Railway Brake Block Rane NSK Rack & Pinion steering gear Steering Systems -Mechanical › Manual Steering Column Stabilizer link Friction Materials Disc pad 38 Our Illustrious Journey An illustrious journey of over 80 years from distributor of automobile and auto components to winner of Deming prize for manufacturing Distribution Manufacturing Collaboration Operational Excellence Expanding Horizons 1929 - 1958 1959 - 1986 1987 - 2000 2000 - 2014 2015 onwards › › › › › 1929 - Founded as a Started Established JV with TQM Journey with Established Rane distributor of manufacturing IC TRW (currently ZF) Deming Grand Prize Auto Parts automobiles and Engine Valves, Tie and NSK to offer for 3 companies and › Expanded footprint spare parts Rod Ends, Friction power steering Deming Prize for in USA with the Material Products systems, occupant 5 companies › 1936 - Incorporated acquisition of and Manual restraint systems and › as a Public Ltd. Started Precision Die Steering Gears energy absorbing Company manufacturing high Casting, Inc. steering columns pressure aluminium › Acquired Rane t4u die cast products, Pvt. Ltd. , Bengaluru electric power steering and airbags 39 Global Footprint Canada Poland Russia Germany Slovakia UK Czech Republic Belgium Hungary Austria France USA Novi, MI Spain Romania Italy Portugal Turkey China Japan Russellville, KY Qatar S. Korea Bhutan Morocco Nepal Bangladesh Mexico UAE India Saudi Arabia Singapore, Malaysia & Thailand 30 Serve customers Sri Lanka + in 30+ countries Kenya Indonesia Manufacturing Brazil Malawi 26 locations across India and USA Australia South Africa Customer Manufacturing Sales Locations Locations Offices 40 Rane Aftermarket Business Increasing Group’s brand presence in aftermarket through enhanced product portfolio and wider market reach 41 In house R&D & Technology Partnership Strong CAE Capabilities – Design, Analysis & Simulation Software 230 R&D Engineers 42 26 Functional Strength Test Test Rigs Rigs Hydraulic Power Steering Systems and Occupant Safety Systems 62 33 Durability Environment Test Rigs al Test Rigs Energy Absorbing Steering Columns and Electric Power Steering 10 Noise Test Rigs Brake Linings, Discs Pads and Clutch Facings 42 We create and deliver value to our customers Passenger Vehicle Commercial Vehicle Farm Tractor Two/Three-Wheeler Other Applications A I D N I L A N O I T A N R E T N I 43 Awards and Accolades are testimony to our resolve for Excellence ‘Customer at the core’ remains our priority on the goal to sustainable growth and profitability Rane Group Rane (Madras) Rane Brake Lining Customer Award Category Customer Award Category Customer Award Category Volvo Eicher New Product Development Mahindra & Mahindra Business Partner of the year Brakes India Best Supplier -Friction Award –Automotive Division Nexteer Perfect Quality Award Ashok Leyland After Market Support Award TAFE Best Supplier & Benchmark Award Maruti Suzuki Superior Performance Award, Foundation Brake Business Excellence Award Special Support SML Isuzu New Product Development Gold Award for Quality Award Endurance Best Benchmark Award, Tata Motors Award for Exceptional Support, Best Supplier Award Best Supplier –Demand Fulfillment Toyota Industries Best Target Achieved Supplier Award Rane Engine Valve ZF Rane Rane NSK Customer Award Category Customer Award Category Customer Award Category Quality & Customer Best Performance in Business Efforts in Vendor Import GroupeRenault Ashok Leyland MarutiSuzuki Satisfaction Alignment-Gold Localisation John Deere India Quality Appreciation Award Isuzu Motors Most ImprovedSupplier Award Award for best reduction in Honda Cars VolvoEicher Quality & Delivery excellence Tata Motors Best Supplier Award, Efficiency CO2 Award, Best in Class Award Quality & Customer Volvo Eicher Kata Award Renault Nissan Volvo Eicher Best Supplier in NPD, Supply Satisfaction Chain Hyundai Appreciation Award Daimler India Quality Appreciation Award Cummins India Superior Quality Award Renault Nissan Best Supplier in FieldQuality 44 Expanding Horizons – Customers Value Rane Values Rane Approach Rane Credentials Proposition › › › › › Superior products Provide superior Build strong Modern manufacturing facilities Technology collaboration products and connections with with TS 16949 certification with top global players driven by execution maintain market customers to excellence › leadership understand their State-of-the-art product › challenges development and validation Trusted partner with › Pursue excellence capabilities ZF Group, Germany shorter development › Strategic Hydraulic Power Steering Systems lead times › › Achieve the highest investments to Deming Grand Prize for and Occupant Safety Systems › standard of ethics improve quality 3 Rane companies Agile manufacturing and integrity and productivity process and › Deming Prize for 5 Rane NSK, Japan scalable facilities › TQM way of companies Energy Absorbing Steering Columns working › and Electric Power Steering Provide system-level › solutions with deep Emphasis on ‘First- understanding of time right’ policy Nisshinbo Brake Inc., Japan customer needs Brake Linings, Disc Pads and › Clutch Facings With enhanced R&D capabilities, we provide light- weighting, improved LONG TERM PARTNER OF CHOICE TO LEADING safety and performance AUTOMOTIVE COMPANIES AND TIER 1 SUPPLIERS 45 Expanding Horizons – Employees An exciting workplace founded on the principles of values, fairness and transparency that: Provides challenging Encourages learning Enhances career Rane Brand assignments opportunities Promise › Organisation Development Excellence Award for the exceptional practices on Leadership Development by Transcendence, Tata Institute of Social Sciences (TISS), 2019 Certified as a Great Workplace by the › Recognized by International Federation of Training and Great Place to Work Recognition Development Organizations in Best HRD practice category, institute, 2022 2018 › Award for Talent Management from the Employer Branding institute, Singapore, 2012 & 2014 › Significant Achievement in HR Excellence, CII, 2012 Systems approach to deliver H&S to our employees Emergency Preparedness & Legal & Compliance Policies & Procedures Response Safety Organizational Structure Risk Reduction Training Audit Structure and Communication 46 Expanding Horizons – Society › Rane Foundation (RF) is a public charitable trust founded by Rane’s promoters in the year 1967 › RF is the main arm for Rane’s Corporate Social Responsibility (CSR) initiatives and is exclusively funded by the Rane companies › Initiatives are focused on education, healthcare, environment and community development Rane Polytechnic Education Healthcare Environment Community Rane Vidyalaya Development › › › Institution Nutrition program Plantation drives › Development - Providing amenities › › Health camps Infrastructure for Rane Polytechnic, & sanitation sustainability Rane Vidyalaya › Medical › Improving quality › › infrastructure & aid Natural resource Vocational Training of life preservation & Skill Development › Rural infrastructure › Awareness development programs program 47 Thank You For furtherinformation, pleasecontact: investorservices@ranegroup.comor diwakar.pingle@in.ey.com Rane Corporate Centre “Maithri" 132, Cathedral Road, Chennai -600 086, India www.ranegroup.com 48 Glossary of Abbreviations Abbreviation Expanasion Abbreviation Expanasion ACMA Automotive Component Manufacturers Association PBT Profit Before Tax bps Basis point, 100 bps equal to 1% PC Passenger Car BV Book Value per share PLE Production Linked Incentive Cr Crores PPM Parts Per Million CV Commercial Vehicle Pvt Private DPS Dividend per share H1 Half Year 1 EBITDA Earnings Before Interest, Tax, Depreciation and Amortization SE Station Engine FT Farm Tractors Rane T4U Rane T4U Pvt Limited FY Financial Year REVL Rane Engine Valve Limited GPTW Greate Place To Work RHL Rane Holdings Limited HR Human Resource RLMCA Rane Light Metal Casting Inc Intl International RML Rane (Madras) Limited JV Joint Venture RNSS Rane NSK Steering Systems Pvt Limited LCV Light Commercial Vehicles SCV Small Commercial Vehicles Ltd Limited SIAM Society of Indian Automobile Manufacturers M&HCV Medium & Heavy Commercial Vehicles US United States Mn Million USD United States Dollar MPV Multi Purpose Vehicles UV Utility Vehicle MUV Multi Utility Vehicles VRS Voluntary Retirement Scheme NPD New Product Development YoY Year-on-Year OE Original Equipment YTD Year To Date OEM Original Equipment Manufacturer ZRAI ZF Rane Automotive India Pvt limited OES Original Equipment Supplier (Formely knowns Rane TRW Steering Systems Pvt Ltd) PAT Profit After Tax ZROS ZF Rane Occupants Systems Pvt Ltd. 2W/3W Two Wheeler/Three Wheeler 49 Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. 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 (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, government policies and action with respect to investments, fiscal deficits, regulations etc., interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statement become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. 50