SAFARI INDUSTRIES (INDIA) LTD. CORPORATE PRESENTATION MARCH 2019 - PowerPoint PPT Presentation

SAFARI INDUSTRIES (INDIA) LTD. CORPORATE PRESENTATION MARCH 2019

DISCLAIMER  This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities of Safari Industries (India) Limited ( the “ Company ”). This presentation should not be considered as a recommendation that any investor should purchase, any securities of the Company and should not be used as a basis for any investment decision.  The information contained in this presentation is only current as of its date and has not been independently verified. Please note that the past performance of the Company is not, and should not be considered as, indicative of future results. Furthermore, no express or implied representation or warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation.  None of the Company or any of its affiliates, advisors or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented or contained in this presentation.  This presentation contains certain currency exchange rates and the same have been provided only for the convenience of readers. No representation is made that the Rupee amounts actually represent such USD amounts or could have been, or could be, converted into USD at the indicated rates.  The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes.  Accordingly, any persons in possession of this presentation should inform themselves about and observe any such restrictions. This presentation contains certain statements of future expectations and other forward-looking statements, including those relating to our general business plans and strategy, our future financial condition and growth prospects, and future developments in our sector and our competitive and regulatory environment. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’, ‘should’, ‘ex pec ts’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward lookin g statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results, performances or events to differ materially from the results contemplated by the relevant forward looking statement. The factors which may affect the results contemplated by the forward looking statements could include, amongst others, future changes or developments in (i) the Company’s business, (ii) the Comp any ’s competitive environment, and (iii) political, economic, legal and social conditions in India. 2 Private & Confidential

1. CORPORATE OVERVIEW

EXECUTIVE SUMMARY  One of the fastest growing luggage brands inIndia Consistently growing luggage brand ~47% CAGR in Revenues & ~59% CAGR in EBITDA since FY 2013 to FY 2018  One of the top 3 luggage brands inIndia Leadership position Leadership position in an oligopolistic market  Products spanning across all luggage categories Diversified product Products for all customer categories suiting all possible occasions portfolio Currently dominated by Soft luggage (>70%*), Polycarbonate and School bags launched recently  Multi channel distribution network with >3500 customer touchpoints Well entrenched distribution network Channel network covering CSD, Hyper market, MBO, EBO, Ecommerce and Institutional  Experienced management team and Board ofDirectors Management & Governance Adhering to high standards of corporate governance 4 Private & Confidential * FY 18

CORPORATE SNAPSHOT Revenues Debt * INR 4,218 Mn INR 550 Mn (FY 18) (FY 18) ~3,000 (MBOs) Customer EBITDA ~750 (Modern Trade) Touch INR 429 Mn (FY 18) Points ~2200 (CSDs) 100+ (across Soft PAT INR 215 Mn SKUs Luggage, Hard Luggage, (FY 18) Backpacks, School Bags) INR 1,728 Mn Net Worth 1,100+ Employees (FY 18) 5 Private & Confidential * Including Short Term and Long Term Borrowings

SHARE PERFORMANCE & REVENUE GROWTH Historical Stock Price Movement Performance Comparison with BSE Index Share holding pattern as on 31 st March 2018 700 40000 35000 600 30000 500 Share Price (Rs.) Promoter 17% 25000 400 20000 300 15000 200 Institutions (Public) 25% 10000 100 5000 0 0 Non Institutions 58% (Public) Safari ind BSE Revenue (Rs. Mn) 4,218 3,535 2,789 2,165 ~ 6.8x growth in 1,671 940 revenue in the past 7 620 years FY 12 FY 13 FY 14 FY 15 FY 16 FY 17* FY 18* Source: Company Private & Confidential *As per IND AS

TIMELINE OF KEY EVENTS  Mr. Sudhir Jatia acquired majority stake (77%) in  Tano Capital invested ~Rs. 500 Safari Industries (India)  Launched in 1974. Mn in July 2014 Ltd in May 2012  Launched polycarbonate  Launched backpacks  Started with limited luggage and new product under SAFARI brand.  Product rationalization & categories e.g. laptop bags SKUs primarily catering  Begun the ecommerce sales  Launch of backpacks to adult customers, strategy realignment,  Opened China office under Genius and family travel needs elimination of non Genie brands for performing SKUs schools FY 1974- FY 2018 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 2011  Identified school bags as a  Malabar Fund invested  Product rationalization  Foray into PC focus area and intensified Rs.510 Mn in October 2017 & strategy realignment manufacturing. focus on backpacks – elimination of non  Acquisition of Genius,  SAP implementation in performing SKUs  Introduction of SKUs in Magnum, Activa, Orthofit, July 2017 CSD segment DBH, Egonauts, Gscape  GST migration from July and Genie  Opened second China 2017 office  PC capacity expansion at Halol in March 2018 7 Private & Confidential

PILLARS OF SUCCESS  Attractive industry dynamics  Diversified customer offerings with a wide product portfolio  Well entrenched distribution network  Experienced management team  Sound corporate governance 8 Private & Confidential

2. INDUSTRY SNAPSHOT

ATTRACTIVE INDUSTRY DYNAMICS SIZEABLE MARKET WITH HEALTHY GROWTH POTENTIAL Composition of Luggage Market – contributes 23-24% of overall market Registered ~15% CAGR during 2011-16 91 Volume growth ~11% Total Sales - 138 Mn Units (2016 Luggage & BagsSales) 79 68 Value growth~15% 58 51 Luggage 45 23% 32 29 26 24 21 19 Bags 77% 2011 2012 2013 2014 2015 2016 Sales of Luggage (Million Units) Sales of Luggage (INRBn) Source: Euromonitor International Source: Euromonitor International Expected to grow to > INR 120 Bn by 2021 Luggage is dominated by “Soft” Sales of Luggage by Type -2016 (%) 121 117 112 106 98 91 45 Soft Hard 43 40 38 35 32 2016 2017 2018 2019 2020 2021 Sales of Luggage (Million Units) Sales of Luggage (INR Bn) Source: Euromonitor International Source: Euromonitor International 10 Private & Confidential

ATTRACTIVE INDUSTRY DYNAMICS UNDER PINNED BY STRONG MACRO DRIVERS Indian tourism market grew at >10% CAGR over the past 10 years… …leading to steady growth in number of air passenger’s >10% 86 90 110 99 CAGR >10% 80 83 90 76 CAGR 70 74 72 64 60 70 54 52 43 50 50 40 36 40 50 40 31 31 26 25 24 30 18 30 20 10 10 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2015 2025E Indian Tourism Market (USD bn) Air Passengers Carried in India (mn) Source: IBEF, Travel & Tourism Council’s Economic Impact 2015 Source: WorldBank Increase in number of IT employees… …and increase in students 25 Number of IT/BPM Employees (mn) Number of college students (in mn) 21.5 20.3 3.7 4.0 Number of college students (mn) 3.5 18.7 20 17.2 3.1 3.0 15.8 2.8 14.4 3.0 2.6 15 13.2 12.0 11.0 10.2 9.5 9.0 2.0 8.4 10 5 1.0 0 0.0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Source:NASSCOM Source: data.gov Expected to drive the growth in luggage & bags market 11 Private & Confidential

3. BUSINESS HIGHLIGHTS

BUSINESS HIGHLIGHTS COMPREHENSIVE LUGGAGE OFFERINGS •Daily use Safari’s Offering •School children •Leisure •Young adults/ •Work college students •Business/ Family •Adults Travel School Bags All customer Suitable for all segments occasions Backpacks Reaching Delivering at Laptop Bags customers via multiple price diversified points channels •CSD •Mass market Uprights/Duffles •MBO •Value customers •Hyper markets •Premium customers •EBOs & Others Polycarbonate Addressing diverse customer needs across all customer categories Source: Company 13 Private & Confidential