Onward Technologies Limited · NSE:ONWARDTEC
Onward Technologies — Investor Presentation (May 2021)
31 slides from Onward Technologies's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION MAY 2021
Slide 2: Snapshot
Snapshot Legacy Execution Capabilities Team Strength 3 Decades of Experience Over 8500 of Projects Delivered Dynamic & Experienced Leadership Founder, Mr. Harish Mehta also co- Over 50 Million of Hours of Team founded NASSCOM engineering work 2,000+ Experienced employees Global Footpri
Slide 3: Company Overview
Company Overview Key Business Segments • Established in 1991 Onward Technologies Ltd is a leading player today in Engineering Research & Engineering Research & Development (ER&D) Development (ER&D), Digital Transformation and IT consulting services (ITS). • The Company offers wide range of • Headqua
Slide 4: Board of Directors
Board of Directors Harish S. Mehta - Executive Chairman • As Founder of Onward Group, Mr. Harish Mehta has led, grown, and mentored two generations of this technology company. He was the Deputy Chairman and Managing Director of Onward Novell Software (I) Ltd. (1993-2005), a 50:50 JV between Onward G
Slide 5: Board of Directors
Board of Directors Parish Meghani - Director Mr. Parish Meghani is actively involved in three areas; an auto-ancillary manufacturing business, a real estate business and equity investments. He has prior experience of running an IT firm that specialized in data security products. He has done his Prod
Slide 6: Leadership Team
Leadership Team Vignesh Kumar - EVP and Head Sales (USA & Europe) V Sankar - Sr. Vice President & Regional Business Head Experience: ~28 years Experience: ~30 years Previous stint: Siemens, TCS Previous Stint: Mascon Global Education: B.E., M.B.A. Education: University of Madras Pratish Mehta - EVP
Slide 7: Awards & Accolades
Awards & Accolades Onward Technologies Limited has won many awards for its excellence and contribution in the IT industry Awarded For igniting the vision of CSR leadership conference entrepreneurial potential of India by NASSCOM Foundation in and building the TiE platform in 2019 2019 HRD World Indi
Slide 8: Key Milestones
Key Milestones - Mr Harish Mehta founded Onward Technologies as a first generation entrepreneur 1991 - Mr Mehta also formed, an independent 50:50 Joint Venture with Novell Inc (Onward-Novell Private Ltd) which he managed till 2005. - (Novell -USA was the world’s second largest personal software comp
Slide 9: Geographical Presence
Geographical Presence FY21 Revenue Breakup – Client Location USA 36% India Europe Onward London 53% 5% Cleveland Onward Germany UK Chicago Troy London 6% Amsterdam Frankfurt Pune Mumbai Bengaluru Onward Mumbai HQ Chennai Onward Troy Onward Chicago HQ Offshore Development Centre Office Onward Pune La
Slide 10: Key Strengths
Key Strengths Proven expertise in delivering mechanical engineering and digital transformation services to global 1000 companies Ability to ramp-up on-demand across the globe on a short notice Flexible business and engagement model to provide agility and cost effectiveness Right size organiz
Slide 11: Strategic Transformation
Strategic Transformation FY2021 TARGET FY2025 Top 10 Top 10 Customers Customers (45%) (70%) Top 11-50 Customers Top 11-50 Customers (41%) (20%) Remaining Customers Remaining Customers (14%) (10%) Digital 2% ITS Digital 26% ER&D Transfor ER&D 72% mation 50% 50% Over its 3-decade legacy, Onward Tech
Slide 12: Future Growth Strategy
Future Growth Strategy New Capabilities Focus • Focus on newly established capabilities in • Clear strategy for winning larger deals from existing Digital Transformation, Industrial IoT, and customers and new customers in target markets: (North Industry 4.0 America, Europe & India) • Build capabilit
Slide 13: Future Growth Outlook
Future Growth Outlook The future growth outlook continues to remain positive due to increasing demand from Transportation, Mobility, Industrial Equipment & Heavy Machinery verticals. Increase in wallet share from its Top 20 – OEM customers which will result in top line growth between 15% to 20%
Slide 14: Business Overview
BUSINESS OVERVIEW netted Your imagination, Delivered to Per c — ————————_—___ se _ al . — ee Your Imagination. Delivered to Perfection™ 14
Slide 15: Services Offered
Services Offered • Onward is in an enviable position since very few service providers can seamlessly complement the engineering services and IT services and provide the converging digital platform solutions. • Customers also prefer to build a two-way relationship with a partner who has the capabilit
Slide 16: Engineering Research & Development (ER&D)
Engineering Research & Development (ER&D) • Designing and developing outstanding new engineering products requires expertise across Product Design & Development Manufacturing Engineering multiple domains. • The evolution of a product happens over time with • New Product Strategy • Layout Development
Slide 17: Digital Transformation
Digital Transformation • Digital transformation help small and large organizations maximize the value of their data, unearth insights, build Maximizing value by achieving the right plans and respond in real-time to customer demand. equilibrium between costs, quality and safety • Onward digital trans
Slide 18: Case Studies
Case Studies Engineering and digital services for one World’s largest off highway and construction Transportation and Leading Transportation company of the World’s largest off-highway and equipment manufacturer Diesel Locomotive Company construction equipment manufacturers • With deep domain experts
Slide 19: Industry Overview
INDUSTRY OVERVIEW tthteriir| Your imagination, Delivered to Perf = — =e . 4 - ——— — ; - Your Imagination. Delivered to Perfection™ 19
Slide 20: Engineering R&D Service Industry
Engineering R&D Service Industry • In a 2019 report by Zinnov, the market addressed by ER&D Service Providers stands at ~USD 80 Billion, at 8% Y-o-Y growth USD 2019 Global ER&D Spend 1.4 Tn Expected future CAGR of 7% • The study analyzed the global Engineering R&D (ER&D) space and estimated that the
Slide 21: Digital Transformation
Digital Transformation • The covid-19 pandemic has accelerated the demand for hi-tech by shriveling human activity into a world of apps. The explosion in online activity has galvanized massive cloud-led adoption, digital adoption, and transformation of the core. Global digital penetration has been r
Slide 22: Opportunities
Opportunities R&D Opportunities we are uniquely positioned to capture… R&D • Design Automation • Time series analysis • Simulation – CFD/FEA • NPI MEG • AR/VR • Simulation MEG • Digital twin study • Inventory Management • Cobots Sales Business Process • Demand Forecast • Process Automation using RPA
Slide 23: Financial Overview
FINANCIAL OVERVIEW Botiveccsies ‘Your imagination, Delivered to Perfection” | Your Imagination. Delivered to Perfection™ 23
Slide 24: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Particulars (INR Mn) FY18 FY19 FY20* FY21* Operational Income 1,066 1,182 1,806 1,727 Total Expenses 1,030 1,032 1,660 1,531 EBITDA 36 150 145 196 EBITDA Margins (%) 3.38% 12.69% 8.03% 11.35% Other Income 65 50 65 85 Depreciation 46 48 102 93 Finance Costs 22 21 3
Slide 25: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY19 FY20 FY21 Particulars (INR Mn) FY19 FY20 FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 75 70 164 Share Capital 158 160 163 Intangible assets 56 41 39 Other Equity 454 455 573 Intangible assets un
Slide 26: Historical Consolidated Profit & Loss
Historical Consolidated Profit & Loss Particulars (INR Mn) FY18 FY19 FY20* FY21* Operational Income 2,445 2,610 2,715 2,404 Total Expenses 2,333 2,386 2,482 2,231 EBITDA 112 224 233 173 EBITDA Margins (%) 4.58% 8.58% 8.58% 7.20% Other Income 48 12 11 53 Depreciation 55 57 113 104 Finance Costs 30 27
Slide 27: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY19 FY20 FY21 Particulars (INR Mn) FY19 FY20 FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 98 80 171 Share Capital 158 160 163 Intangible assets 57 41 39 Other Equity 452 520 581 Intangible assets
Slide 28: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 224 233 2,715 101 173 2,610 8.58% 8.58% 74 67 3.87% 7.20% 62 112 2,445 2.74% 3.08% 2,404 4.58% 2.28% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA EBITDA Margin PAT PAT Margin ROE and ROCE (%) 100 .0
Slide 29: Key Metrics (Consolidated)
Key Metrics (Consolidated) Revenue by Business Revenue by Industry Revenue by Contract Type 2% 4% 4% 5% 8% 33% 31% 27% 26% 26% 22% 25% 34% 27% 26% 31% 38% 26% 24% 26% 27% 69% 73% 72% 74% 78% 75% 67% 69% 36% 42% 42% 31% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ER&D ITS Digital Indu
Slide 30: Capital Market Data
Capital Market Data 250% Dividend per Share (INR) 200% 3.00 150% 100% 50% 1.50 1.50 1.00 0% -50% FY18 FY19 FY20 FY21 Onward Sensex Shareholding Pattern (as on 31st March 2021) Price Data (As of 31st March 2021)* Face Value 10.0 Market Price 113.2 Public 52 Week H/L 137.9/34.6 38.26% Market Cap (INR
Slide 31: Disclaimer
Disclaimer Onward Technologies Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of the information or opinions contained in this presentation. Such information and opinions are in all e
Onward Technologies — Investor Presentation (May 2021) on 6ix