Landmark Cars Ltd

Dear Shareholders,

I am honored to present Landmark's first annual report after our successful IPO. This year marks our 25th anniversary - a journey of premium excellence from humble beginnings to becoming India's leading automotive retail business.

Our IPO garnered a good response, with a subscription rate of 3.06 times. This serves as a testament to the immense trust and support of investors. We are deeply honored to have such strong backing as we remain dedicated to our focus on high-growth segments. We used our IPO proceeds of Rs 1,391 Million to repay our working capital loans in line with the Utilisation of Net Proceeds as stated in the Prospectus.

The previous two years presented the world with unprecedented challenges, significantly impacting economies. However, emerging economies, particularly India, demonstrated better resilience. Across the world, listed and organised auto retailers have played a crucial role in developing and strengthening automobile markets. With India now the third largest automobile market globally and car penetration still only around 22 per 1,000 people, there remains huge potential for further growth.

In recent years, we have witnessed a major shift towards premium and luxury vehicles. Factors like rising disposable incomes and aspirations are driving demand. Luxury car penetration in India remains around just 1% of the overall passenger vehicle market, amongst the lowest globally, representing massive headroom for growth.

Moreover, India's per capita income is projected to rise from USD 2,301 in March 2022 to USD 5,242 by 2030. This substantial increase is expected to drive the demand for premium and luxury cars exponentially, establishing India as a prominent market for global OEMs.

The premiumisation trend is accelerating, presenting significant opportunities as the mass market stagnates.

The surge in premiumisation can be attributed to Young aspirational customers with growing disposable incomes driving top-end variant and EV demand. They seek luxury vehicles offering cutting- edge features and technology along with performance and eco-consciousness. This reflects customer preference for high- performance and environmentally conscious options.

Furthermore, the Indian government's emphasis on infrastructural development is increasing in demand for commercial vehicles. This trend has and will continue to benefit Landmark, as we also cater to the commercial vehicle segment through our dealership for Ashok Leyland in various regions of Gujarat.

Over the past 25 years, Landmark has established itself as the largest partner for its OEM brands in India, driven by its relentless pursuit of excellence and strategic partnerships. This has led to remarkable growth and success within the market. We have consistently expanded our dealership network to offer customers extensive premium vehicle choices.

In 2022-23, we expanded our presence by opening three sales outlets for BYD in Delhi, UP and Mumbai, as well as two Jeep outlets in Navi Mumbai. In Kolkata, we upgraded to a larger workshop for Mercedes-Benz.

Landmark is dedicated to ensuring customer satisfaction by providing a comprehensive suite of services to enhance the ownership experience. Our offerings encompass new vehicle sales, third-party financing and insurance products, after-sales service and spare parts, as well as pre-owned passenger vehicle sales. We ensure that our customers' needs are met at every stage, backed by strategic collaborations and investments in technology. This includes our foray into the EV market in partnership with BYD, as we align ourselves with sustainable mobility solutions and envision a future- oriented approach.

With our extensive network of outlets across 26 cities in 8 states and union territories, Landmark remains accessible to customers nationwide.

Behind our success lies a dedicated team of over 4,000 individuals, guided by experienced professional management and recognised for their exceptional people management practices. Together, we strive to provide unparalleled experiences and uphold our position as a leader in the automotive industry.

The business model followed in India for auto retailers has 2 pillars.

Sales and sales-related incomes like finance commission, Insurance commission, and accessory sales.

# After sales/services Business.

To capitalise on the potential in the Indian auto market, we are introducing a new pillar of preowned car sales. The pre-owned car market is bigger than the size of the new car market and is projected to grow even faster. We have devised a unique business model to make this segment profitable and believe it will contribute meaningfully to our profitability and customer retention.

Our financial performance for 202223 has been remarkable despite the economic challenges. We have witnessed a growth of 36.4% in proforma revenue, amounting to Rs 45,950 Million compared to Rs 33,691 Million in the previous year. This highlights the growing demand for premium vehicles and our strong

ability to cater to the rising demand. The number of vehicles we sold increased to 21,310 during 202223 showcasing a rise of 10.6% as compared to the previous year. The number of vehicles serviced has also increased by 13.9% to 3,17,954 in 2022-23. Our EBITDA margins stands at 5.4%,. This demonstrates our commitment to operational efficiency and cost optimisation. Furthermore, our PAT stands at Rs 851 Million, showing a substantial growth of 28.6% over the previous year.

FY23 was the first full year under the new direct billing model with Mercedes-Benz. This has significantly reduced working capital needs and increased retained margins. While chip shortages and supply chain disruptions impacted the supply of some fast-moving vehicles, proforma turnover still grew healthily.

Looking ahead, we will focus on expanding our geographic presence across India by establishing new showrooms and workshops. Our additional focus will be on the preowned vehicle segment, leveraging our strengths, skilled workforce, robust infrastructure, and strong brand image.

To enhance the customer experience, we are intensifying our efforts to leverage technology, streamline processes, and provide personalised services. We believe this strategic focus on technology will keep us at the forefront of industry advancements and propel us forward in India's growth story. India's auto retail sector remains highly fragmented. There is sizable potential for organised players like Landmark

to consolidate their share. Leveraging our strengths - including scale, reach, infrastructure, and renowned OEM partners & capital, we are well-positioned to capitalise on the industry's strong growth prospects.

Closing Note

I am deeply grateful to every member of the Landmark family for their unwavering commitment, tireless efforts, and invaluable contributions that have led to our remarkable success. Together, we have surpassed significant milestones and set new benchmarks within the automotive industry. I would also like to express my sincere appreciation to our esteemed OEM partners for their unwavering support and trust in our shared vision. Their collaboration has been instrumental in our achievements. I extend my gratitude to our shareholders and investors who have demonstrated their unwavering support and belief in the Company. It is through the collective efforts and support of all stakeholders that Landmark continues to thrive and excel. I look forward to our continued collaboration as we shape the future of the automotive industry together.