TRUE GRIT 66 th ANNUAL GENERAL MEETING 29 July 2020 DISCLAIMER The - PowerPoint PPT Presentation

TRUE GRIT 66 th ANNUAL GENERAL MEETING 29 July 2020

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. 2

CUMI – A BRIEF HISTORY 12 MW Hydel project at Maniyar , Kerala, Toll manufacturing model operations India. WFA at Edapally, commenced in China. CUMI Incorporated EAL, Calcutta. Sterling Abrasives Limited, Ahmedabad, Expansion of IC at Hosur METZ 2.0 Acquired & merged Cutfast Abrasive Tools 2 nd Bonded Abrasives Coated Abrasives facility from Commissioned three fusion plants at Limited. Ajax Products Pvt. Ltd. plant at Hosur, its Electro-mineral Complex at Cochin, CUMI America Inc., USA & CUMI (Australia) India. MMTCL Bonded Abrasives facility set up at Pty Ltd. 5 of CUMI’s Plants were awarded Chennai, India. with JIPM Award for Excellence in TPM 5.5MW natural gas based thermal power Consistency / TPM Excellence, plant in Nallur, SEDCO. Bauxite mining at Bhatia, Gujarat, Category ’A’. Acquired Prodorite Anti-Corrosives Ltd. , India. Cloth processing facility at Maraimalainagar, Tamil Nadu. TQM drive across the company 1974 - 83 2004 - 13 1954 - 63 1984 - 94 1994 - 04 2014 - 19 1964 - 73 SiC Microgrits at Koratty , Kakkanad, Sol-gel plant and Expansion of Bonded Abrasives Manufacture of Super Alumina Zirconia in Edapally plant at Hosur , CUMI Middle East. Refractories at state-of-the-art Coated Abrasives plant at Sriperumbudur Chennai, India. Silicon Carbide plant at Koratty, Monolithic Refractory facility in Jabalpur & Refractories plant at Ranipet. Volzhsky Abrasives Works, Russia . BFA Edapally 51% holding in Foskor Zirconia (Pty) Ltd, South Africa. Industrial Ceramics plant at Manufacturing facility for Thin Wheels at Uttarkhand. Calcination facility Hosur Commissioning of a modern 1,000 tonne Vitrified Bonded at Okha Acquisition of 40% interest in Abrasives plant and 2,000 tonne Organic Bonded Abrasives Wendt (India) Ltd. facility in China. Expansion of Industrial Ceramics & METZ 1.0 state-of-the-art Super Refractories plant II at Serkadu Thukela Refractories Isithebe Pty Ltd, South Afri ca TPM Kickstarted in Abrasives

WE ENGINEER MATERIALS SCIENCE SOLUTIONS FOR AN ENDURING PLANET Abrasives Surface Engineering Electro minerals Materials Heat Wear & Containment Science Corrosion & Ceramics & Refractories Protection Solutions Management Composites Mission Critical Applications

OUR LEADERSHIP TEAM M M Murugappan Chairman N Ananthaseshan Managing Director Ninad Gadgil Rajesh Khanna Sergey Kostrov V G Rajendran Jayan P S Trevor Allen Arul Rajkumar Abrasives Ceramics VAW Refractories Electrominerals CAPL HR

A RESILIENT ORGANISATION BUILT ON STRONG FUNDAMENTALS APPLICATION HYDEL POWER ABRASIVES 7 DSIR LABS NEW-AGE MATERIALS DEVELOPMENT SURFACE TECHNOLOGY ORGANIC & INORGANIC BAUXITE MINE ELECTRO MINERALS NEW PROCESSES CENTRE GROWTH 60 + MATERIALS & CERAMICS; REFRACTORIES OPERATIONAL EXCELLENCE THERMAL POWER DESIGN THINKING TECHNOLOGY PLATFORMS COMPOSITES STRONG PEOPLE STRONG PEOPLE DIVERSITY IN SEGMENTS; DIVERSITY IN SEGMENTS; STRENGTHENING THE CORE: BUILDING MATERIALS FOR THE STRENGTHENING THE CORE: BUILDING MATERIALS FOR THE STRONG BACKWARD CAPABILITIES DRIVING CAPABILITIES DRIVING GEOGRAPHY & CUSTOMERS GEOGRAPHY & CUSTOMERS FUTURE FUTURE INTEGRATION INNOVATION INNOVATION

CUMI GROUP CUMI Standalone Direct Subs Subs via CIL JVs/ Associates Operations Abrasives Volzhsky Abrasives Works MMTCL - 49% Sterling Abrasives Limited – 60% (Russia)- 98.07% FOSKOR Zirconia (Pty) Ltd. (S. Africa) – 51% CIRIA Limited - 30% Electro Minerals CUMI Australia Pty. Ltd. - 51.22% CUMI America Inc. – 100% Wendt India Ltd. 39.87% Ceramics CUMI Middle East – 100% SEDCO - 84.76% CACCL (China) – 100% Net Access India Limited - 100% CUMI Europe (Czech Republic) – 100% 7

GLOBAL FOOTPRINT

The Year That Was 2019-20

2019: SUBDUED GLOBAL GROWTH 20% 25% INDIA** 20% AUTOMOTIVE GLOBAL* 15% 6% 4% 10% 0% 5% -4% 0% Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY20 -11% -5% -13% -16% -10% 1.3 -15% 1.3 -20% 6.6 6.4 6.0 CONSTRUCTION 8.0 5.2 5.2 7.0 2.3 6.1 6.0 5.0 4.2 2.6 4.0 3.0 -0.04 2.0 1.0 0.0 1.7 -2.2 0.2 -1.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -2.0 -3.0 2018-19 2019-20 10.7 12.0 10.0 MANUFACTURING 8.0 5.6 5.2 6.0 3.0 2.1 4.0 2.0 *IMF’s estimates as of June 2020 -0.6 -0.8 -1.4 Calendar Years are followed for all Economies except India 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 **CSO, MOSPI -2.0 2018-19 2019-20 -4.0

**CSO, MOSPI COAL PRODUCTION (mMT) CEMENT (‘000 TONS) 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 0.0 50000.0 100000.0 150000.0 200000.0 250000.0 300000.0 350000.0 400000.0 0.0 CORE INDUSTRIES IMPACTED 551.5 2011-12(Apr-Mar) 229500.0 2011-12(Apr-Mar) 569.1 2012-13(Apr-Mar) 246614.0 2012-13(Apr-Mar) 3% 7% 574.5 2013-14(Apr-Mar) 255826.0 2013-14(Apr-Mar) 1% 4% 620.8 2014-15(Apr-Mar) 270938.0 2014-15(Apr-Mar) 8% 6% 650.8 2015-16(Apr-Mar) 283457.0 2015-16(Apr-Mar) 5% 5% 671.5 2016-17(Apr-Mar) 279975.0 2016-17(Apr-Mar) 3% -1% 688.8 297711.0 2017-18(Apr-Mar) 2017-18(Apr-Mar) 3% 6% 739.6 337322.0 2018-19(Apr-Mar) 2018-19(Apr-Mar) 7% 13% 334366.0 736.9 2019-20(Apr-Mar) 2019-20(Apr-Mar) -1% 0% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% STEEL (‘000 TONS) ELECTRICITY (GEN. Mkwh) 200000.0 400000.0 600000.0 800000.0 1000000.0 1200000.0 1400000.0 1600000.0 0.0 100000.0 120000.0 140000.0 20000.0 40000.0 60000.0 80000.0 0.0 876950.4 2011-12(Apr-Mar) 75697.0 2011-12(Apr-Mar) 912056.7 2012-13(Apr-Mar) 81690.0 2012-13(Apr-Mar) 4% 8% 967237.8 2013-14(Apr-Mar) 87673.0 2013-14(Apr-Mar) 6% 7% 1110458.0 2014-15(Apr-Mar) 92157.0 2014-15(Apr-Mar) 15% 5% 1173602.0 2015-16(Apr-Mar) 90980.0 2015-16(Apr-Mar) 6% -1% 1242105.8 2016-17(Apr-Mar) 100748.0 2016-17(Apr-Mar) 6% 11% 1308195.7 2017-18(Apr-Mar) 106364.0 2017-18(Apr-Mar) 5% 6% 1375687.7 2018-19(Apr-Mar) 111780.0 2018-19(Apr-Mar) 5% 5% 1388847.9 115621.0 2019-20(Apr-Mar) 2019-20(Apr-Mar) 1% 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% -2% 0% 2% 4% 6% 8% 10% 12% 11

CONSOLIDATED FINANCIALS SEGMENTAL RESULTS : FY 20 Gross Sales * :INR 2569 Cr -3% Financial Year 20 PAT :INR 272 Cr 10% Electrominerals** Ceramics & Refractories** Abrasives** Revenue: INR 995 Cr Revenue :INR 629 Cr Revenue :INR 1026 Cr -11% 1% 4% EBIT : INR 113 Cr -19% EBIT :INR 132 Cr EBIT :INR 104 Cr -19% 22% 24% 30% 32% 37% EBIT Revenue *After inter-segmental cancellations 39% **Before inter-segmental revenues, excludes 38% 12 ‘Other’ segments

FINANCIALS Sales: (7%) GOLY Sales : (3%) GOLY PAT : 10% GOLY PAT : 15% GOLY 2656 2,800 2575 2569 1752 1,800 1622 1623 2331 2,330 CONSOLIDATED SALES AND PAT IN RS Crores 1,551 STANDALONE SALES AND PAT IN RS Crores 1,600 2,300 2,080 1,383 1,917 1,274 1,400 1,800 1,200 1,000 1,300 800 PAT % 600 PAT % PAT 800 12% PAT % 9% 400 11% 9% 166 143 134 122 116 191 200 166 248 143 134 116 122 272 300 175 216 144 - FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 -200 13

FINANCIALLY RESILIENT 16% 15% 15% 15% Financial Strength Return on Equity% 14% 15% 14% 14% • 66 years of unbroken dividend 14% 13% payout 13% 13% • Strong and consistent returns on 12% capital 2016 2017 2018 2019 2020 0.35 • Steady increase in Asset turnover 0.3 0.3 • Strong Balance Sheet – Major 0.25 expansion plans on internal accruals 0.2 Debt/ Equity 0.15 • Zero Net Debt 0.1 0.1 0.1 0.1 0.05 0.0 0 2016 2017 2018 2019 2020

PERPETUAL RESILIENCE

WHAT MAKES CUMI RESILIENT ? It’s varied Businesses • Abrasives, EMD, Industrial Ceramics, Refractories It’s varied industry segments • Auto, Auto comp, Engineering, Basic Metals, Infrastructure, Energy, Power, Housing etc . It’s varied markets • ~ 45% of the revenues are outside India It’s cost competitiveness • Backward integration, low cost manufacturing presence It’s culture • Openness, Innovation, Experimentation It’s amazing people !

ABRASIVES: ENGINEERING SURFACES Auto & Component General & Heavy Engineering High end Applications Overall GDP growth in Aerospace, Defense, – India growth Construction MRO Hubs in India expected to reach 6% in 2021 Bearings Auto Greater Preference for personal modes General Eng of transportation Heavy Eng Auto after markets Higher used vehicle Infra and Construction sales likely post-covid Atmanirbhar Bharat Steel (ANB) focus on housing, construction, real estate Core MREGA allocations Adjacencies Aerospace / Transformational

COATED CAPACITY EXPANSION – SRIPERUMBUDUR 18