INVESTOR PRESENTATION August 2021

1995 Launch 1979 Farmtrac Collaboration End JV with 1971 with JCB For Ford Manufacturing backhoe 1969 Of Construction JV with Ford Equipment 1954 motors Franchise of to make 1948 Massey Tractors Ferguson ~JV with Tadano for Launch high end cranes 1944 Escorts (Agri tractors for northern India 2018 Founded Machinery Escorts Ltd.) ~Distribution ~Strategic 2016 Agreement with collaboration & Escorts Credit Doosan Infracore Manufacturing JV Co. Limited 2010 Partner with DLL with Kubota Launch DIGMAX for Financing 2005 Brand of Backhoe Divested from 2003 other business to End focus on tractors 1998 Collaboration and construction Auto part Launch with JCB equipment Powertrac Business Brand of Divested tractors

TO BE AMONG TOP ENGINEERING COMPANIES IN INDIA VISION Through the power of imagination in engineering we create solutions that help our customers be more productive.

TO BE AN INTEGRATED SOLUTION PROVIDER MISSION To our customers by harnessing emerging future technologies and information to add value at every stage of customer need.

RESPECT FOR EMPOWERMENT COLLABORATION CORE VALUES PEOPLE TRANSPARENCY

STRATEGIC CUSTOMER INNOVATION EXCELLENCE AGILITY VALUES CENTRICITY

Total income FY21: ₹ 7,083.9 Cr. Q1FY22: ₹ 1,718.7 Cr.

Escorts Agri Machinery Escorts Construction Equipment Railway Equipment Division

EAM’s advanced agri-machinery & crop solutions ECE’s vast range of construction & material RED’s wide array of help enhance agricultural productivity and add handling equipment supports India’s railway products aids the modernization of value to a farmer’s life infrastructure growth Indian Railways Revenue FY21: ₹ 5,667.3 Cr. Revenue FY21: ₹ 776.1 Cr. Revenue FY21: ₹ 479.0 Cr. Q1FY22: ₹ 1,411.4 Cr. Q1FY22: ₹ 140.8 Cr. Q1FY22: ₹ 119.4 Cr.

ESCORTS is one of India's leading engineering conglomerates and for over Seven decades it has helped accelerate India’s socio-economic development through its presence across the high growth sectors of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment. Standalone numbers Copyright @ Escorts Ltd. ESCORTS LIMITED 4 MANUFACTURING FACILITIES

Escorts Agri Machinery (EAM) Three Plants: Farmtrac, Powertrac & Components with a current production capacity of 120,000 + tractor p.a. Poland Plant: 100% subsidiary having an installed capacity of 2,500 tractor p.a. 50,000 capacity Manufacturing Plant under JV with Kubota

Escorts Construction Equipment (ECE) State of the art manufacturing and assembly facility sprawling 60,702 sq.m. of space with a capacity of 10,000 units p.a.

Railway Equipment Division (RED) State of the art manufacturing facility sprawling 55,609 sq.m. with capacity to produce 9,600 AARH couplers, 2,580 SHAKU couplers, 18,000 air brakes 1,500 EP brakes and 9,99,996 brake blocks annually

Powering The Dreams Of Farmer

Increasing Trend towards Mechanisation

Minimum Support Prices for Key Crops

Scarcity of Labour

Ease of Credit Availability from Govt. FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21

❖ India is the largest manufacturer of farm equipment ❖ India accounts for nearly 1/3rd of the overall tractor production globally ❖ 0.9 million units in FY21 and reach to approx. 1.2-1.5 million units by 2030 ❖ Customer exchange their tractor in every 4-6 years in mature markets.

Industry Segment Volume (in lakh) 4.82

3.72 3.41 3.46 2.81 2.57 2.36 2.52

1.24 0.75 0.75 0.81 0.85 0.70 0.66 0.56 0.60 0.57 0.23 0.16

< 30 HP 31-40 HP 41-50 HP > 50 HP

FY18 FY19 FY20 FY21 Q1FY22

Industry Segment in % 53.5% 54.2% 46.8% 47.3% 48.7%

35.3% 35.6% 33.3% 28.0% 28.6%

10.3% 10.0% 9.5% 9.9% 9.0% 7.6% 7.6% 8.0% 9.5% 7.2%

< 30 HP 31-40 HP 41-50 HP > 50 HP

FY18 FY19 FY20 FY21 Q1FY22

EAM Segment wise Volume in % 55.8% 55.3% 49.5% 47.1% 46.2% 43.8% 44.6% 42.9%

33.0% 33.0%

5.4% 5.3% 6.2% 5.3% 5.9% 5.5% 3.0% 3.8% 3.8% 4.6%

< 30 HP 31-40 HP 41-50 HP > 50 HP

FY18 FY19 FY20 FY21 Q1FY22

EAM Segment wise Market Share in % 16.5% 15.2% 14.5% 13.3% 12.3% 11.8% 10.4% 10.8% 11.0% 10.9% 7.9% 8.2% 6.7% 6.6% 6.7% 7.1% 6.3% 5.9% 4.7% 3.5%

< 30 HP 31-40 HP 41-50 HP > 50 HP FY18 FY19 FY20 FY21 Q1FY22

Premium Economic

High (> 50 HP) FARMTRAC (41-50 HP) Mkt.Size:52%

Medium POWERTRAC (31-40 HP) Mkt. Size:37%

Compact Tractor Low (< 30 HP) Mkt. Size:11% SteelTrac

31-40 41-50 51-90 HP Range < 30 HP HP HP HP

Successful launch of Best selling Compact range This Highest growth segment is PowerMaxx series of Utility range of Champion and Diesel tractors for Vineyard & Orchards Saver series complemented with Smart & Classic and Euro series FT 6090 Up To 120 HP Technology Leadership

Engines Driveline 26 to 110 hp 22 to 90 HP

Complying current & future emissions Transmissions: Higher Horsepower Agricultural Tractors of India, EU & USA Constantmesh, Synchromesh, Shuttle, HST for Bigger farm size suitable to need of BS4,Stage5,Tier4 esteemed farmers Hydraulic lifts: 1,000kg to 3,000kg capacity Copyright @ Escorts Ltd. ESCORTS LIMITED 11 WINNING MARKET

1 Strong Market, Strong Brand

2 Strong Market, Weak Brand

3 Opportunity Market

POWERTRAC

FARMTRAC

OPPORTUNITY MARKET LOW TIV Current 1,100+ Active Dealer Network

Map is for illustrative purposes Copyright @ Escorts Ltd. ESCORTS LIMITED 12 INGREDIENTS FOR GROWTH

Brand led Product Dual Distribution in Strong Market Portfolio Expansion Strong Brand Coverage: 90 → 99% Farmtrac Weak Brand Coverage: 33 → 80% Powertrac Steeltrac

South/West Focus Various Finance Tie-ups Channel Extension Compact tractor Rice tractor

Customer Centricity Care Button Scientific Sales Management ETC Mobile Vans Hotline www.digitrac.in

Aspirations From FY17 to FY22 Copyright @ Escorts Ltd. ESCORTS LIMITED 13 CARE – 24X7

Copyright @ Escorts Ltd. ESCORTS LIMITED Copyright @ Escorts Ltd. ESCORTS LIMITED Copyright @ Escorts Ltd. ESCORTS LIMITED DIGITRAC Contactless Sales

Tractor Export from India In `000s

EUROPE US MARKETS SAARC 89 92 89 80 76 78 76 LATAM 64 64

AFRICA

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Tractor Exports from India expected to grow by CARG 6~8%

Main Market under 120 HP Tractors

Hobby/Garden farming in Market (like USA)

TECHNOLOGY PRODUCT RANGE SUPPLY CHAIN DISTRIBUTION NETWORK

TRACTOR IS AS GOOD AS ITS ATTACHMENTS SPRAYERS

HARVESTERS

ESCORTS PLANTERS SHIP

IMPLEMENTS

*SHIP = Sprayers, Harvesters, Implements & Planters Business Copyright @ Escorts Ltd. ESCORTS LIMITED 19 …EAM JOURNEY SO FAR & ASPIRATIONS FORWARD

SEGMENT REVENUE (Rs. Cr.) EBIT %

6,000.0 18.2% 20.0% 15.6% 18.0% 5,000.0 17~18% EBIT Margin 13.6% 14.0% 13.0% 16.0% 14.0%

4,000.0

10.3% 12.0%

3,000.0 8.2% 10.0% 4,744.0 5,667.3 8.0% 2,000.0 4,437.6 3,346.0 3,957.9 6.0% 2,734.3 4.0% 1,000.0

1,411.4 2.0%

- 0.0% FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 ❖ Revenue Growth Initiatives ❖ EXPORT VOLUMES (Nos.) ROCE % ❖ South & West penetration 1,20,000 77.7% 90.0%

80.0% ❖ Emerging Business

1,00,000 58.3% 70.0% ❖ Cost Rationalization 80,000 46.3% 60.0%

50.0%

60,000 37.4% ❖ Raw Material 32.0% 34.4% 40.0% 96,412 40,000 21.7% 80,417 86,018 1,06,741 30.0% ❖ Manpower cost

63,786 20.0%

20,000 51,455 25,935 10.0%

0 0.0% FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22** Copyright @ Escorts Ltd. ROCE ** Annualised Data ESCORTS LIMITED 20 Segment Performance : ECE

PREFERRED PARTNER IN NATION BUILDING

Served Industry Volume (in`000s)

47.2 45.7

38.6 39.7

10.2 8.1 7.8 7.4 5.3 4.2 5.0 3.9 4.8 1.3 0.8

Backhoe Loader Cranes Compactors

FY18 FY19 FY20 FY21 Q1FY22 Served Industry category wise in %

75.8% 78.9% 75.6% 75.6% 71.3%

17.9% 16.0% 16.4% 16.2% 12.8% 8.2% 8.1% 8.1% 8.3% 10.8%

Backhoe Loader Cranes Compactors

Source: ICEMA Copyright @ Escorts Ltd. ESCORTS LIMITED 22 PRODUCT PORTFOLIO

1) Material Handling 63%

2) Earth 16.2% Moving

3) Road 7.4% Construction

% of ECE Revenue 5/22 Copyright @ Escorts Ltd. ESCORTS LIMITED 23 MATERIAL HANDLING

RT/ TC Joint Venture For High End To build the segment and expand Product Basket Cranes Slew 10-80T

TRX/Safe Cranes 10 – 23T Continue Market Dominance in Safe Crane and Hydra Cranes move the market upwards 8 – 16T

Hydra 68% 67% 53% 47% 58% 57% Product F-15/ TRX Series Split 32% 33% 47% 53% 42% 43% FY17 FY18 FY19 FY20 FY21 Q1FY22 Transform the market from a leadership position

SEGMENT REVENUE (Rs. Cr.) EBIT %

1,200.0 3.6% 3.6% 5.0% ASPIRATION

3.6% 4.0%

1,000.0 1,054.1 3.0% 839.8 High Single Digit EBIT 780.3 776.1 2.0%

800.0 1.0% Margin

606.8 0.0% 600.0 1.9% 496.5 -1.0% -2.3% -2.3%

-2.0%

400.0

-3.0%

-4.0% 200.0 -5.2% 140.8

-5.0%

- -6.0% Strategic Tie ups FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Focus on Cost Reduction : VOLUMES (Nos.) Material Cost

6,000 1.2

5,000 1 Focus on Export reach

4,000 0.8 Enhancement

3,000 0.6 5,544 4,042

2,000 4,486 0.4 3,913 Channel Financing 3,315 606 1,000 2,555 0.2 Dealership & Outlet reach 0 0 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 expansion

ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT

To achieve Leadership position in Indian Railways Components Industry in the defined segment

Major Sourcing partner for global Rolling Stock OEMs & Operators

CONSISTENT More than Rs. 300 Cr. as of ORDER BOOK June’2021

SEGMENT REVENUE (Rs. Cr.) EBIT %

600.0 477.2 25.0% ✓ Manpower Cost, Productivity 479.0

500.0 394.1 20.0% Improvements 400.0 14.6% ✓ Material Cost improvements 286.6 18.0% 15.0% 300.0 227.8 242.5 19.9% 16.0% 10.0%

✓ New Product Revenue boost 200.0 13.9% 12.7% 119.4

5.0% ✓ Building Strong Inhouse R&D 100.0 9.9%

- 0.0% FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22

OPERATION REVENUE (Rs. Cr.) Material Cost % Adverse commodity prices

6,929 68.4% 68.3% 6,196 5,761 67.9% 5,016 4,168 67.0% 67.1% 3,439 66.3% 66.3% 1,671

FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22

EBITDA (Rs. Cr.) % PAT (Rs. Cr.) %

1,200 16.3% 18.0% 1,000 12.6% 14.0%

11.8% 11.7% 900 16.0% 8.4% 7.8% 11.1% 12.0% 1,000 11.1% 14.0% 800

14.0%

10.0% 700 800 12.0% 6.9%

600

8.0%

10.0%

8.0% 500 600

8.0%

6.0% 5.0% 400 3.8% 400 6.0%

300 2.4% 4.0% 4.0%

200

2.0%

2.0% 177 324 557 733 676 1,129 233 100 84 160 345 485 486 874 185

- 0.0% - 0.0% FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 Standalone Numbers Copyright @ Escorts Ltd. ESCORTS LIMITED 30 ↑ KEY FINANCIAL METRICS …

Including EPS (₹) Excluding EPS (₹) Treasury Shares Treasury Shares 92.2 68.14 55.8 55.5 40.58 40.63 41.6 28.85 20.9 16.84 14.03 18.1 8.39 10.8

# FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22 # FY16# FY17 FY18 FY19 FY20 FY21 Q1FY22

ROE % PATROCE (Cr) % 25% 30% 26%

20% 25% 20% 23% 16% 16% 21% 20% 20% 18%

15% 14% 14%

15% 13%

10% 8% 10% 8% 5%

0% 0% FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22* FY16 FY17 FY18 FY19 FY20 FY21 Q1FY22*

Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- AA AA Rating

(₹ Crs.) 600 553 436 480 361 263 50 277 7 0 0 120.0 111.0

500 100.0 96.0

400 290 80.0

206 302 300 50.0 60.0 57.0

220 200 40.0 159 220 31.0 263 28.6 18.5

100 230 20.0 178 15.5 140 11.0 104 50 49

0 0 3.0 - 8 07 0 0 FY 11-12 FY 12-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY19-20 FY 20-21 Q1 FY22

Please note:- Term Loan Commercial paper WC Finance Cost 1. Nos. from FY 11-12 to FY 14-15 is as per IGAAP. 2. Finance Cost for FY 12-14 is for 18 months. 3. Number from FY19-20 is excluding lease liability Copyright @ Escorts Ltd. ESCORTS LIMITED 32 ↑ SHAREHOLDING PATTERN

9.09% 9.09% 9.09% 9.09%

26.93%

21.97% 21.22% 20.62% 25.31%

30.32% 30.12% 30.92% 31.55% 26.91%

2.51% 2.23% 2.18% 2.15% 2.10%

40.25% 36.59% 36.59% 36.59% 36.59%

June' 2020 Sept' 2020 Dec'2020 March'2021 June'2021 Promoters + Trust Non Promoter-Non Public Institutions* Public Overseas Corporate Bodies (KUBOTA CORPORATION)

* FPI/Financial Institutions/ Banks/Insurance Companies As of quarter ended

NIKHIL NANDA SHAILENDRA AGRAWAL Chairman & Managing Director Executive Director • Alumnus of Wharton Business School, Philadelphia • Mechanical Engineer with 35 years of diverse experience in • Responsible for driving Escorts’ growth initiatives to Tata Motors, Hero Motors and Escorts Limited. strategically position it in the global arena • Leading business transformation at Escorts Limited.

HARDEEP SINGH SUNIL KANT MUNJAL Non-Executive Director Independent Non-Executive Director • One of the founder promoters of the Hero • Chairman - Monitoring committee on MSP (Planning Group, the world’s largest two-wheeler Commission) & Food Security Task Force, CII maker

P.H. RAVIKUMAR TANYA DUBASH Independent Non-Executive Director Independent Non-Executive Director • Founder MD & CEO of NCDEX • Executive Director and Chief Brand Officer of Godrej Industries Ltd. • Chairperson of CISI’s India Advisory Council • Director Godrej Industries Limited, Godrej Consumer Products Limited and Godrej Agrovet Limited. VIBHA PAUL RISHI DAI WATANABE Independent Non-Executive Director Non-Executive Non-Independent Director • Worked as ED of Max India Ltd. • More than 25 years of diverse experience in Kubota • Director of Marketing & Strategy at Future Group Corporation. • General Manager Innovation Centre of Kubota DR. SUTANU BEHURIA YUJI TOMIYAMA Independent Non-Executive Director Non-Executive Non-Independent Director • Financial Advisor to Ministries of Commerce, • 30 years plus of diverse experience in Kubota Corporation. Textiles, Coal, Mines, Youth Affairs & Sports • Senior Managing Executive Officer of Kubota • Served as Board member in over 25 PSUs HARISH S SALVE NITASHA NANDA Independent Director Whole Time Director • Mr. Salve is a senior counsel as well as an arbitrator in India and ▪Responsible for managing Company’s subsidiary companies Barrister (UK) specialising in constitutional, commercial and ▪Serves as Board member in several companies taxation law. He was the youngest ever to be appointed as solicitor Copyright @ Escorts Ltd. ESCORTS LIMITED MANAGAMENT TEAM

Mr. Shailendra Agrawal Executive Director ➢ 39 years of experience in creating product & technology roadmap and driving business transformation through Business Process Re-engineering

Mr. Shenu Agarwal CEO, Escorts Agri Machinery ➢ 30 years plus of experience in domestic and international sales and marketing, R&D and product development, strategy and project management. ➢ He is a member of the CII National Council of Agriculture and the Managing Committee of the Tractor Manufacturers Association.

Mr. Ajay Mandahr CEO, Escorts Construction Equipment ➢ 30 years plus of experience in operations, sales & marketing, new product development

Mr. Bharat Madan Group Chief Financial Officer & Corporate head ➢ 33 years plus of experience in financial accounting, audit, cash and capital management, forecasting and risk management, tax planning, financial modelling and analysis

Mr. Amit Singhal Group Chief Human Resource Officer & Deputy Corporate head ➢ 17 years plus of experience in Strategic HR, Business Partnership, Employee Relations and Culture and Change management roles. ➢ He is a lifetime member of National Human Resource Development, New Delhi and an active member of CII State Council.

Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that impact our businesses and customers. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Escorts Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Contact Details Bharat Madan +91 129 2564837 (Group Chief Financial Officer) [email protected] Escorts Ltd. (CIN: L74899HR1944PLC039088) Corporate Centre 15/5 Mathura Road Faridabad – 121003 Phone: +91 129 2250222 Prateek Singhal +91 129 2564921 www.escortsgroup.com (Financial Analyst & Investor Relations) [email protected] [email protected]

ESCORTS