CARBORUNDUM UNIVERSAL INVESTOR PRESENTATION Nov 2017 CUMI@2017 1 - PowerPoint PPT Presentation

CARBORUNDUM UNIVERSAL INVESTOR PRESENTATION Nov 2017 CUMI@2017 1

DISCLAIMER The communication may contain statements relating to future business developments, company’s performance and economic performance that may constitute ‘forward looking statements’ . While these forward looking statements represent the company’s judgments and future expectations, a number of factors could cause actual developments and results to differ materially from expectations. The company undertakes no obligation to publicly revise any forward-looking statements to reflect future events or circumstances. CUMI@2017 2

Murugappa Group An Overview CUMI@2017 3

Murugappa in Numbers Turnover $ 4.6Bn 117 17 3 Consolidated Sectors Countries Years Workforce 40,000 + 28 55 Manufacturing locations Businesses CUMI@2017 4

CUMI@2017 5

The Philosophy We Cherish CUMI@2017 6

Industry Verticals Agriculture Organic Specialty Bio Sugar Refinery Fertilisers Pesticides Sugar Nutraceuticals Manure Nutrients Products Engineering Electro Industrial Steel Metal Industrial Power IT Infra Abrasives Refractories Bicycles Chains minerals Ceramics tubes/Strips Forming Gears Generation Management Financial Services General Risk Stock NBFC Insurance Management broking Diversified Nets & Home Rubber Tea Construction Packaging Furnishings Products CUMI@2017 7

Presence in more than 17 Countries Marketing & Distribution Bases in Argentina, Australia, Brazil, Netherlands, Philippines, South Africa, Thailand, UK, USA USA Russia, China Nutraceuticals, France Electro Minerals, Industrial Abrasives Industrial Chains Ceramics Tunisia Phosphoric Acid ME Thailand Materials, Abrasives Materials, Abrasives Australia South Africa Chile Industrial Ceramics Zirconia, Phosphoric Astaxanthin Acid CUMI@2017 8

Geographical Presence Jammu & Kashmir Coromandel Punjab TPI Uttarakhand Haryana CUMI & TII TIMF Ambadi Uttar Pradesh TPI TII Rajasthan Assam Liberty Parry Agro Gujarat West Bengal Sabero Liberty CUMI PEIL MMTCL Coromandel TII Madhya Pradesh Maharashtra CUMI TII Liberty Coromandel Karnataka TPI Andhra Pradesh SSL Liberty TIDC PSIL PSIL Liberty Tamil Nadu Coromandel Ambadi PSRIPL Coromandel EID CUMI TII Kerala MMTCL New Ambadi CUMI Parry Agro Shanthi Gears Ambadi More than 55 manufacturing locations across 15 states in India CUMI@2017 9

Setting the Standards in Our Fields Russia 1 Silicon Carbide Electro minerals Precision Electro Transmission Pan India 1 1 1 2 2 Abrasives Bicycles Steel Tubes minerals Chains Phosphatic Non-Banking Financial Regional 1 1 2 Sugar Fertilisers Services CUMI@2017 10

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Corporate Social Responsibility 4 schools (8000 students) 4 hospitals – Facilities for 300 in-patients Polytechnic college (1400 students) Scholarships, Rural Girl Child Education Scheme Shri AMM Murugappa Chettiar Research Centre (MCRC) – Agri farm research Youth football academy, mobile health van CUMI@2017 12

Carborundum Universal CUMI@2017 13

Business Portfolio PBIT Share CUMI – FY 17 Sales Share  Revenue :Rs. 22.3 bn  EBIT :Rs. 2.8 bn  Capital Employed :Rs. 16.0 bn Ceramics Electro-minerals Abrasives  Revenue : Rs 10.2 bn  Revenue : Rs 4.7 bn  Revenue : Rs 7.7 bn  EBIT : Rs 1.1 bn  EBIT : Rs 0.7 bn  EBIT : Rs 0.9 bn  Capital Employed : Rs 4.6 bn  Capital Employed : Rs 3.7 bn  Capital Employed : Rs 5.5 bn Super Refractories Industrial Ceramics Wear Resistance Heat and Corrosion Abrasion Electro Minerals Electro Resistivity Resistance CUMI@2017 14

The path traversed so far…  Micronisation  Grain treatment CAPABILITY  Sol gel  Coated modernization  Iso Static press  Metallization  Fusion ENABLING PROPERTIES  Injection Moulding  Polymer Processing  Moulding • Hardness  Vitrification  Sintering  Zirconia • Toughness  MATERIAL Crude SiC  Micro SiC • Inertness  Eng. Ceramics  Metz Ceramics  • Alumina Heat Resistance  Coated Non Woven  Bonded Abrasives  •  Sintered Grains Electrical Resistance Super Abrasives  Lite Refractories  Wear Ceramics • Corrosion Resistance  Refractories  Macro SiC  Electrical Transmission APPLICATIONS  Corrosion Resistance  Abrasion  Composite Manufacturing  Wear Resistance  Insulation …..2005 2006-2016 2017- 2020… Core Growth Engines Future CUMI@2017 15

CUMI Consolidated – Exports its products to more than 55 countries – Over 20,000 varieties of Products – 28 manufacturing locations – 7 countries – Over 5200+employees – 1800+ outside India – Consolidated Gross Sales Rs 2232 cr (FY 16-17 ) – Market Cap~ Rs. 7000 cr CUMI@2017 16

CUMI World Wide- By Business Verticals RUSSIA Abrasives Ceramics Electro minerals CHINA USA Abrasives Abrasives Ceramics THAILAND Abrasives S. AFRICA EUROPE UAE INDIA AUSTRALIA Foskor Zirconia Abrasives Electro Minerals Abrasives Abrasives Ceramics Electro minerals Ceramics Electro minerals Abrasives l Ceramics l Electro Minerals CUMI@2017 17 Manufacturing Base Marketing & Distribution Base

OUR VISION/MISSION We will be an Admired Company in VISION Abrasives & Technical Ceramics, driven by Innovation, to create Stakeholder Wealth. MISSION Become one of the largest Abrasives (including Super Abrasives) / Technical Ceramics in the Company in the World by 2022. CUMI@2017 18

The Leadership Team CUMI@2017 19

ABRASIVES CUMI@2017 20

Abrasives CUMI@2017 21

Abrasives Business Overview  Engineering surfaces BUSINESS  By creating precision surfaces on materials – grind to finish DEFINITION  Design, manufacture and distribute Rigid and Flexible abrasives Aerospace | Automotive | Auto Comp | Bearing | Steel | Light/Heavy engineering INDUSTRIES General Engineering | Fabrication | Wood Working and Construction SERVED PRODUCT RANGE Super Abrasives Metal Working Fluids Power Tools Thin Wheels Bonded Abrasives Coated Abrasives Standard Products - made to Stock Custom Built Products - made on Order Full range abrasives solution provider - Grind to Finish CUMI@2017 22

Standalone operations – CUMI India COATED BUSINESS BONDED BUSINESS Maraimalai Nagar Plant Sriperumpudur Plant Hosur Plant - 1979 Chennai Plant -1954 • 52 Acre • Coated Plant • 15 Acre • Processing of Cloth / Paper • Custom Built Products • Std. Vitrified Products • Manufacture of Phenolic / Alkyd Resins Roorkee Plant - 2007 EAL Plant, Kolkatta • 9 Acre Coated Plant • Thin Wheel Mfg. across sizes CUMI@2017 23

Subsidiaries / Associates – Mfg. Locations VOLZHSKY ABRASIVE WENDT INDIA STERLING ABRASIVES WORKS - RUSSIA CUMI@2017 24

CUMI Abrasives Markets Norway Russia CANADA Poland UK USA Turkey Japan / Korea Gulf Countries Bangladesh Ivory Coast Panama Sri Lanka Brazil South Africa Australia CUMI@2017 25

Abrasives Industry Value Chain Abrasives Distribution Raw End- Application Materials Manufacturing Channel Users • Aluminum Oxide • Bonded Abrasives • Retailers • Cutting • Automobiles • Silicon Carbide • Coated Abrasives • Wholesalers • Grinding • Machinery • Zirconia • Super Abrasives • Direct Sales • Polishing • Metal Fabrication • Boron • Other Abrasives • Supply Agreements • Lapping • Construction • Garmet • Online Portals • Buffing • Transportation • Others • Others • Electronics • Steel • Bearings • Aerospace • General Engg. • Wood working • Others CUMI@2017 26

Global Abrasives market Size Total Market Size Estimate ~ $33.0 bn, growing at a CAGR of 3-4% Europe: $3.7 bn Middle East: $0.15 bn Middle East: $0.15 bn Coated: $1.5 bn Bonded: $1.6 bn Coated: $53 mn Super Abrasives: $0.6 bn Bonded: $70 mn Gr Rate: 2-3% Super Abrasives:$30 mn Gr Rate: 5-6% APAC: $20.0 bn APAC: $20.0 bn North America: $3.5 bn Coated: $7.0 bn Bonded: 10.0 bn Coated: $1.4 bn Super Abrasives: $ 3 bn Bonded: $1.5 bn Gr Rate: 4-5% Super Abrasives: $0.6 bn Gr Rate: 3-4% India: $0.5 bn Coated: $220 mn Bonded: $210 mn Super Abrasives: $61 mn Gr Rate: 9-10% Rest of World: $4.0 bn Rest of World: $4.0 bn India $1.4 bn (incl. India: $0.5 bn Adjacencies) Coated: $1.1 bn Abrasives: $0.5 bn Bonded: $2.2 bn MWF: $0.6 bn Super Abrasives: $0.68 mn Power Tools: $0.3 bn Gr Rate: 3-4% Source: Techanvio Market Report & internal findings CUMI@2017 27

Megatrend : urbanization 2012 2025 1 53 rural; 219 transition; 96 rural; 220 transition; 115 semi – 84 semi – urban and 33 urban districts* urban and 58 urban districts 8 high performing states 12 very high and high performing to contribute 52% of states – 50% of India’s GDP incremental GDP and 58% of consuming class households 89 million consuming class households and 45 million first 5 metropolitan districts – 26% of population, 45% of consuming time aspirer households in India class households, 40% of GDP 79 metropolitan districts spread and 37% of consumption across 427,000 km2 provide same 49 clusters contribute 70% of GDP economic opportunity as 8 high performing states spread across 794,000 km2 CUMI@2017 28