Modison Limited · NSE:MODISONLTD
Modison — Modison Metals — Investor Presentation (February 2022)
37 slides from Modison's investor presentation, Feb 23, 2022
Slide 1: Exchange filing cover letter
MANUFACTURER OF ELECTRICAL CONTACTS FOR LY, MV, HV & EHV SWITCHGEAR INDUSTRIES ASEM CEs, R 4 *, 33 - Nariman Bhavan, 227 - Nariman Point, ci CoISON Mumbai - 400021 India %, % iy 2 T: +91-22-2202 6437 F: +91-22-2204 8009 METALS LIMITED _ =sales@mocison.com W: wiw.modison.com Cin No.. L51900MH1983PLC0
Slide 2: Global Leadership in Silver Contacts – Investor Presentation February 2022
GLOBAL LEADERSHIP IN SILVER CONTACT S MODISON METALS LIMITED INVESTOR PRESENTATION FEBRUARY 2022 1
Slide 3: Safe Harbour
SAFE HARBOUR Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Management Commentary
MANAGEMENT COMMENTARY “We demonstrated strong performance on all operational parameters coupled with increased market presence. However, unfavourable metal price movement impacted near term profitability. Modison has a strong market presence and organisational efficiency, thereby we continue to be o
Slide 5: Modison at a Glance
MODISON METALS LTD. STRONG GLOBAL A publicly listed company PRESENCE 2 MANUFACTURING ONLY PLAYER WITH PLANTS CAPABILITY Modison Metals Ltd, Vapi Modison Copper Pvt Ltd, Silvassa LV, MV and HV switchgear contacts MODISON GLOBAL TECHNOLOGY AT A INTEGRATION DODUCO NABL Accredited Lab GLANCE ISO CERTIFI
Slide 6: Mission, Vision, Core Values
MISSION VISION CORE VALUES At Modison its our vision to become ENTITY Modision is committed to meet the expectations Modison shall foster continuous caring culture, which can provide one stop solution in INDIA and of our customers, employees & the stakeholders while meeting the expectations of Stake
Slide 7: Company Overview
MODISON > lu => ce lu = (=) > = < a. = (=) i>)
Slide 8: About Us
▪ Established in 1975 by Mr. G. L. Modi as a silver refining company ▪ In 1978, recognizing the high potential for Electrical Contacts in switchgear industry Modison Metals Ltd (MML) commenced manufacturing of silver and silver alloy wires, plates, strips and solid / bimetal contacts ▪ Only company
Slide 9: Milestones
MILESTONES CONTINUOUS INNOVATION & EXCELLENCE Founded as a trading Started manufacturing Collaboration with All HV contacts type Major capex for Installed automatic unit for engineering electrical contacts and Doduco for AgW and tested and approved HV capacity increase contact welding and exports co
Slide 10: Our Strong Global Footprint
OUR STRONG GLOBAL FOOTPRINT NORTH SOUTH EUROPE MIDDLE ASIA AMERICA AMERICA EAST CANADA BRAZIL AUSTRIA NETHERLANDS IRAN SOUTH KOREA USA CROATIA POLAND KUWAIT JAPAN MEXICO ESTONIA RUSSIA CHINA FRANCE SWEDEN VIETNAM GERMANY SWITZERLAND HUNGARY TURKEY ITALY 9
Slide 11: Team
TEAM G L MODI JAY G. MODI RAJKUMAR MODI MANISH SRIVASTAVA Founder & Managing Whole time Director Jt. Managing Director Jt. Managing Director Director 10
Slide 12: Global Customers in T&D Industry
GLOBAL CUSTOMERS IN T&D INDUSTRY 11
Slide 13: Leading Customers in Consumer Industry
LEADING CUSTOMERS IN CONSUMER INDUSTRY 12
Slide 14: Business Overview
BUSINESS OVERVIEW 13
Slide 15: Product Portfolio
PRODUCT PORTFOLIO LOW MEDIUM HIGH PRECIOUS METAL VOLTAGE VOLTAGE VOLTAGE COMPOUNDS • Semis (AgNi, Agcdo,Agsno2 wires) • Silver Nickel • Arcing Contacts (Tulips) • Silver Cadmium Oxide • CuCr with vacuum silver • Non arcing contacts • Silver Graphite brazing alloy • Copper Tungsten Plugs (for • Silve
Slide 16: Precious Metal Compound
PRECIOUS METAL COMPOUND PRODUCTIONIZED SILVER SALTS WITH ABILITY TO PRODUCE CR,LR & AR GRADES WITH MAJOR CUSTOMERS ON BOARD Silver Nitrate Silver Sulphate Silver Oxide CHEMICAL STRUCTURE CHEMICAL STRUCTURE CHEMICAL STRUCTURE Silver(I) Nitrate, Silver(I) Nitrate, Silver(I) Nitrate, IUPAC name IUPAC n
Slide 17: B2C Products
WIDE RANGE OF B2C PRODUCTS INCLUDING B2C BULLION AND CUTLERY PRODUCTS ENABLING CUSTOMER PEARL EMPIRE ITALIA VICTORIA DIVERSIFICATION 16
Slide 18: Manufacturing
MODISON GROUP HO 4 DECADES Nariman Point MANUFACTURING EXPERTISE Mumbai FULLY BACKWARD INTEGRATED MANUFACTURING MODISON METALS LTD SET UP FROM REFINING TO END PRODUCT MODISON AREA: 20,998 sq mt BUILT UP :11,783 sq mt 500 FACILITIES EMPLOYEES MODISON COPPER PVT LTD AREA: 10,450 sq mt USD 50 MILLION B
Slide 19: Manufacturing Capabilities
PROCESS OUTCOME Fully equipped plant for silver Diversified product and copper refining range Fully automated processes with LV Shorter production capacity of 1000 MT times PROCESS OUTCOME Clean room facility with vacuum Ultrafine and pure CuCR furnaces, packing and 400T MV electrical contact range
Slide 20: LV Manufacturing Facilities
EQUIPPED WITH ALL THE LATEST TECHNOLOGY MACHINERY TO MANUFACTURE A WIDE RANGE OF PRODUCTS Silver and copper refining Air induction melting, vacuum induction melting, gas fired furnaces for Ag/ Ag alloy melting WERTLI’s Continuous Casting for AgCd Ag powder production: Atomizer, Chemical,Cementation
Slide 21: MV Manufacturing Facilities
State of the art CuCr disc manufacturing facility with end to end capabilities MACHINE/PROCESS Whole facility in clean Powder mixing & blending room 400T compacting press MV MANUFACTURING Vacuum sintering Furnace Eutectic brazing alloy for FACILITIES vacuum interrupter Vacuum Induction melting furna
Slide 22: HV Manufacturing Facilities
Modern facility equipped with machinery providing end-to- MACHINE/PROCESS end capabilities Electron beam welding machines (3 Machines with seam tracking system) HV facility is spread across High temperature sintering cum melton 4,300 sq meter of land with a furnaces built up area of 2,660 sq meter S
Slide 23: Quality First, Best in Class
QUALITY FIRST Inductively Coupled Density Measurement Leco Oxygen Analyzer: CMM Profile Plasma & C- Scan R0300 & X- Ray BEST IN Tester Fluorescence Spectrometer CLASS CNC Profile Atomic Absorption Micro Hardness Tester Tester Spectrometer & Microscopes & Spark Emission Spectrometer 22
Slide 24: Testing Facility
MACHINE/PROCESS Rigorous quality & inspection program to X-Ray fluorescencespectrometer ensure the world leading quality Atomic absorption spectrometer products consisting of Spark emissionspectrometer Incoming raw material Oxygen analyzer inspection Particle size analyser Microscope Continuous in-p
Slide 25: Research and Development
All new products and processes indigenously developed post 1995 Significant contributor to “import substitution” movement in early 90s “Partnering” approach in customers developments’ System & knowledge management MML spends ~0.3% of the turnover on R&D Predominantly engineering culture – 66 Enginee
Slide 26: Certifications
CERTIFICATIONS CONSISTENTLY ACHIEVING REGULATORY AND CUSTOMER EXPECTATIONS VIA CERTIFICATIONS DNV certification for manufacture and Research sale of electrical contacts for HV and LV Laboratory certified by switchgear industry: National Accreditation Quality: ISO 9001 (2015 version) Board for Testin
Slide 27: Electrical Industry Overview
ELECTRICAL INDUSTRY OVERVIEW GROWTH INDEX FOR ELECTRICAL EQUIPMENT INDUSTRY GROWTH INDEX FOR ELECTRICAL EQUIPMENT INDUSTRY MARCH 2021 COMPARED WITH MARCH 2020 APRIL ‘20 – MARCH ‘21 ▪ Rotating Machines segment witnessed Product Mar ’21 Overall Growth Index marginal growth in Rotating Machines 154.1 F
Slide 28: Financial Overview
FINANCIAL OVERVIEW 27
Slide 29: Quarterly Financials
TOTAL INCOME (₹ MN) EBITDA (₹ MN) AND MARGIN (%)** 1,055 151 960 847 702 742 69 96 14% 46 57 10% 8% 8% 7% QUARTERLY Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 FINANCIALS PROFIT AFTER TAX (₹ MN) EPS (₹) STANDALONE 97 2.98 1.69 55 1.09 35 0.85 28 0.51 17 Q3FY21 Q4FY21 Q1FY22
Slide 30: Interim Profit & Loss
INTERIM PROFIT & LOSS STANDALONE PARTICULARS (in ₹ mn unless Q3FY22 Q2FY22 Q3FY21 stated) Total Income 742 960 847 Operating Expenses** 685 864 778 EBITDA 57 96 69 EBITDA Margin 8% 10% 8% Finance Cost 4 5 6 Depreciation 16 16 16 Profit Before Tax 37 75 48 Taxes 9 20 12 Profit after Tax 28 55 35 PAT
Slide 31: Annual Financials
TOTAL INCOME (₹ MN) EBITDA (₹ MN) AND MARGIN (%)** 379 2,936 316 330 312 2,210 2,222 270 1,913 2,027 16% 16% 15% 13% 12% ANNUAL FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FINANCIALS PROFIT AFTER TAX (₹ MN) 224 EPS (₹ ) 6.91 STANDALONE 143 164 167 151 4.39 5.05 5.14 4.66 FY17 FY18 FY19 FY20 FY
Slide 32: Historical Profit & Loss
HISTORICAL PROFIT & LOSS STANDALONE PARTICULARS (In ₹ Mn unless stated) FY2021 FY2020 FY2019 FY2018 FY2017 Total Income 2,936 2,222 2,210 2,027 1,913 Operating Expenses** 2,557 1,952 1,880 1,711 1,601 EBITDA 379 270 330 316 312 EBITDA Margin 13% 12% 15% 16% 16% Finance Cost 20 20 22 19 27 Depreciati
Slide 33: Historical Balance Sheet
HISTORICAL BALANCE SHEET STANDALONE PARTICULARS (IN ₹ MN) FY2021 FY2020 FY2019 FY2018 FY2017 ASSETS Non-Current Assets 746 747 651 680 662 Current Assets 1,280 1,160 1,150 941 858 Cash & cash equivalents 2 12 1 7 2 Total Assets 2,026 1,907 1,801 1,621 1,520 EQUITY & LIABILITIES Total Equity 1,642 1,
Slide 34: Future Strategy
Innovation via Development of New Products for achieving Scale and Differentiation Focus on Automation and Digitalisation for Efficient Production with Precision and Quality Entry into new Geographies for Market FUTURE Diversification STRATEGY Lean Six Sigma and Execution excellence for Performance
Slide 35: Investment Rationale
4 decades track record in India electrical contacts manufacturing industry resulting in market leadership in LV and HV segment Diverse presence in new and high growth sectors including pharmaceuticals, railways and renewable energy Global market presence through exports comprising ~20% revenues, sig
Slide 36: CSR Activities
CSR ACTIVITIES MODISON • Runs Modison Charitable Trust STRONGLY • Provides drinking water from its RO plant BELIEVES IN • Runs Maternity Hospital GIVING BACK TO • Contributes for pediatric heart surgeries THE SOCIETY AND • Contributes for pediatric cancer patients DO ITS PART IN MAKING A SMALL • Con
Slide 37: For further information, please contact
For further information, please contact: +91 22 2202 6437 Mr. Ravi Udeshi shareholder@modison.com Christensen Advisory +91 22 4215 0210 rudeshi@christensenir.com © 2021 Modison Metals Limited, All Rights Reserved. “Modison Metals” and The Modison Logo are trademarks of Modison Metals Limited. In add
Modison Metals — Investor Presentation (February 2022) on 6ix