Business Presentation Phoenix Lamps Limited

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Contents I.

Company Overview II. Manufacturing Overview III. Business Overview IV. Financial Highlights

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I. Company Overview

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Company Overview

• • • Sale of general lighting business completed end August 2013. Company is now a fully focused automotive lighting player Market leader in automotive halogen bulbs in India with approximately 55% market share in passenger vehicles, 80% in light commercial vehicles and 70% in two / three wheelers OEMs Comprehensive product portfolio of halogen bulbs for the automotive industry with existing capacity of around 87mn units p.a. in auto halogen bulbs • Largest manufacturer in India controlling ~50 - 60% of the total manufacturing capacity in the country and among the top 5 globally with 20+ years of manufacturing excellence and institutionalized knowledge • Well entrenched relationships with the leading Japanese, Korean, European and Indian OEMs who have approved the manufacturing facilities • Strong International presence with exports to more than 50 countries. Overseas operations in Europe through international subsidiaries, Luxlite and Trifa with significant market share in the aftermarket segment • Nearly half of sales (~45%) are under own brands including India’s oldest domestic aftermarket brand and 90 year old European brand for international markets (~86% of sales in India is branded and ~24% of export sales is branded)

* Market related data based on publicly available sources and Management Estimates

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II. Manufacturing Overview

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Large Automated Manufacturing Facilities Unit Location Accreditations

Manufacturing facilities in both domestic tariff area and special economic zone in Noida enables meeting diverse customer requirements Compliance with international standards ECE37R, MVSS108, ISO 9001:2008, OHSAS 1881:2007, ISO/IES 17025:2005 and AIS-037 (ICAT) and E1 homologation certificates

Key Products

H4, HS1, H1, H7, H3, H8, M5, 9000 series and long life variants

Current Annual Capacity

Around 87 mn lamps across 14 production lines

Workforce

1,041 employees 6

Manufacturing Capabilities and Advantages

• • • • • • Adequate controls in place to meet OEM quality requirements Stable operations resulting from over 20 years of experience in running large scale cost-competitive capacities for halogen bulbs Low lead time in terms of approval for products by OEMs Operating Cost advantage vis à-vis competition Ability to procure standard operational lines and customize /automate them at low costs Technology & skilled man power base which is critical for bulb manufacturing with high precision

Bridge Making Process Bulb Forming Process Mount Making Process Sealing Process Tube Cutting Length Checking

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Key Products Overview (1/2)

Bulb Type H4/ H4 LL H1 H7 9000 series Description

• Dual filament • Single filament with high beam • Single filament with low beam • Base designed to prevent corrosion • Single/ double filaments

Vehicle type

4 wheelers

Application

Headlamp

Volts

12 and 24 V 4 wheelers Headlamp 12 and 24 V 4 wheelers Headlamp 12 V and 24 V 4 wheelers Headlamp 12 V 8

Key Products Overview (2/2)

Bulb Type H3 H8 / H9 / H11 HS1 Description

• Single horizontal filament • Visibility during fog by bright yellow lights • Single filament lamps • Special corrosion preventive base • Dual filament

Vehicle type

4 wheelers

Application

Fog Lamp

Volts

12 V and 24 V 4 / 2 Wheelers Head / Fog Lamp 12 V 2 / 3 wheelers Headlamp 12 V

M5

• Dual Filament 2 wheelers Headlamp 12 V 9

III. Business Overview

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Diversified Revenue Mix

• • • Approx. 34% of sales is from the domestic market, of which around two thirds is to OEMs and one third is to the aftermarket 66% sales is exports, all of which is to the aftermarket segment; of this, approximately 80% is contributed by Europe through European subsidiaries Strong brand portfolio for the Indian as well as the international aftermarket – India’s oldest aftermarket brand in the automotive halogen bulb category – 90 year old brand for international markets recognized for the strong value for money proposition it offers to the consumer – Long-standing supply relationship with leading global OLMs (Original Lamp Manufacturer) differentiated through a strong service delivery platform

Domestic vs Export Sales mix (Consol) – FY 14

11% Export AM 23% 66% Domestic OEM Domestic AM

Branded sales mix – FY 14

14% 86% Domestic 76% 24% Export Other Branded 11

Domestic OEM Segment

• • • • • Over a decade of deep and continued relationships with the key OEM clients across the Industry, sustaining higher growth vis à-vis the industry 25 20

OEM sales volume (in mn pieces)

Leading share of business with several of its OEM clients, offering high level of customer stickiness and revenue visibility 15 10 17 20 5 Manufacturing facilities accredited with domestic and international OEMs for the Indian/ international markets FY 11 FY 14 Leading market share across all OEM segments – approximately 55% market share in passenger vehicles, 80% in LCVs and 70% two / three wheelers for OEM fitments • High entry barrier for new entrants entering the Indian market, who would require significant lead time for OEM approvals (typically 2 - 3 years)

Current set of OEM approvals, long standing relationships with key OEM clients, manufacturing scale, capability and technical knowledge provides the company unique competitive advantages to serve OEM clients * Market related data based on publicly available sources and Management Estimates

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Domestic Aftermarket Segment

• India’s oldest domestic aftermarket brands (Halonix & Phoenix) in the automotive halogen bulb category • Aftermarket presence across retail, private label and OEM segments: – Domestic aftermarket presence backed by a strong brand and wide distribution footprint in the country (240+ dealers) – Largest private label supplier supplying to various leading players in India – Supplies to OEMs for their Aftermarket network • Leadership position in North India within the organized market, strengthening distribution to other parts of the country to drive growth • Company is recognized for its strong value for money proposition within the market

* Market related data based on publicly available sources and Management Estimates

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International Aftermarket Segment

• • • • The manufacturing facilities are approved by International OLMs; H4, H7, H8, H9 and 9000 Series international market Exports to 50 countries globally; – key products for European markets constitute significant share of the total export revenues for the Company

Sales mix (Consolidated) – FY 14*

2% 3% India Asia Pacific Europe 42% 48% ME and Africa Americas 5% *Excludes Traded Sales – Presence in Europe through offices and warehouses which helps in meeting customers’ requirement on short notices; Germany, France and Luxembourg are the key markets for the Company; commands sizeable share of the European Aftermarket Acquisition of the European distributor has improved focus - leading to increased sourcing of bulbs from the company as well as provide direct access to – Sustainable OLM business serving the leading global brands and large retailers- long standing relationships differentiated through a strong service delivery platform – Established global brand combined with cost competitive manufacturing and strong European presence can be leveraged to accelerate international growth, especially in emerging markets 14

IV. Financial Highlights

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Summary Financials – India Standalone

India Standalone Financials* (INR mn) Net Sales

Contribution Other Expense Employee Expense

Adjusted EBITDA

Contribution margin

EBITDA margin

ROCE

Mar-11 2,385

1,126 356 268 502 47% 21%

36% Mar-12 2,295

1,137 304 301 532 50% 23%

42% Mar-13 2,077

1,003 320 300 383 48% 18%

32% Mar-14 2,447

1,196 243 340 613 49% 25%

47%

► Significant improvement in FY 14 performance – 18% revenue growth to INR 2,447 mn and EBITDA margin of 25% ► 38% growth in export sales to the International Aftermarket due to increase in sourcing from Phoenix Lamps (India) post acquisition of international subsidiary operations in November 2012 ► Domestic OEM sales growth of 5% in spite of overall market decline in PV and 2W sales volumes ► Domestic Aftermarket sales growth of 60% due to distributor revamp initiatives in CY 2012 ► Consistent track record of delivering industry leading margins and ROCEs ► Divested the general lighting business for INR 1.6 billion in Aug-13 ► Phoenix today is virtually debt free ► Minimal working capital debt in the international operations *Financials adjusted for non-recurring items and discontinued business

Summary Financials – International Subsidiaries and Consolidated

FY 2014 Financials* (INR mn) Net Sales

Contribution Employee Expense

Adjusted EBIDTA

Contribution margin EBITDA margin

Phoenix Lamps Standalone

2,447 1,196 340

613

49%

25%

International Subsidiaries Phoenix Lamps Consolidated

2,429 480 162 3,679 1,491 502

110

20%

5%

611

41%

17% ► International subsidiaries were acquired in November 2012. FY 14 represents first full year of consolidation ► Distribution and warehousing focused European subsidiaries based in Germany and Luxemburg with supplies under own brand as well to OLMs and retailers ► Further margin expansion opportunity as sourcing from India increases ► Overall operations are highly diversified ► Strong presence in the steadily growing Indian Two wheeler market ► Apart from OE sales, significant presence in stable and profitable global aftermarket ► Sales to over 50 countries and 400 customers *Financials adjusted for non-recurring items and discontinued business

THANK YOU

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