Amber Enterprises India Ltd. · NSE:AMBER
Amber Enterprises India — Investor Presentation (March 2018)
36 slides from Amber Enterprises India's investor presentation, March 2018
Slide 1: Amber Enterprises India Ltd Investor Presentation March 2018
Amber Enterprises India Ltd Investor Presentation : March 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Amber Enterprises India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: The Leadership Company
The Leadership Company
Slide 4: Leading Integrated Solution Provider for RAC
Leading Integrated Solution Provider for RAC… Incorporated in 1990, Amber has emerged as a market leader in Indian Room AC OEM/ODM industry Comprehensive product portfolio - Room AC, Reliable Critical Components with long approval cycle One of the Largest Manufacturer & Supplier of critical componen
Slide 5: …with 3 decades of History
…with 3 decades of History Acquisition of Incorporated in Jalandhar, Acquisition of PICL Started Noida Ecotech Unit IL JIN Punjab Dehradun Unit 5 Dehradun Unit 6 Jhajjhar Unit Exit to Green India IPO Started Dehradun Unit 4 established established establsihed Venture Fund 1990 1994 2004 2006 2008 20
Slide 6: Our facilities are Strategically located near Customers
Our facilities are Strategically located near Customers… PCBs for Air Conditioners & RAC (IDU, ODU &WAC), other Consumer durable Heat Exchangers, System products like washing tubing, Plastic molding & machine, microwave etc. Sheet metal parts Greater Noida, Dehradun 3 units IL JIN R & D Lab, Tool RA
Slide 7: …having facilities across 7 locations
…having facilities across 7 locations Dehradun Unit 4 Dehradun Unit 5 Dehradun Unit 6 IL JIN Unit Jhajjar Unit Ecotech Unit Kasna Unit Rajpura Unit Pune Unit PICL Unit Leadership through Innovation 7
Slide 8: Our Strategy that drives Leadership
Our Strategy that drives Leadership Leadership Strategy Product Portfolio Research & Development Backward Integration Economies of Scale Customer Relationships RAC (IDU, ODU & WAC) & Reliable & Critical High focus on ODM through Enables Flexibility & Cost Justify investment of Capital, 8 out of top
Slide 9: Our Comprehensive Product Portfolio
Our Comprehensive Product Portfolio RAC Energy Rating Capacity 1 ton Spilt AC 1.5 ton 2 ton Inverter AC (1, 1.5 & 2 ton) 1 ton Window AC 1.5 ton 2 ton Components Heat exchangers Injection moulding Multi flow Sheet metal condenser components Printed circuit Motor System tubing board Leadership throug
Slide 10: We offer Critical and Reliable Functional Components
We offer Critical and Reliable Functional Components… One of Largest Manufacturer and Supplier of Critical & Reliable Components in Room AC segment & other consumer durable products AC Components Non AC Components Printed Circuit Printed Circuit Boards Heat Exchangers System Tubing Washing Machine T
Slide 11: High degree of Backward Integration
…High degree of Backward Integration…. Outdoor Units* Indoor Units Window ACs 49% 78% 60% Amber Compressors Outsourced Amber Outsourced Amber Compressors Outsourced Critical Compressors Entry into New Flexibility & Reliable are Largely Brands through and Functional Imported Components Cost Control C
Slide 12: Our Products have Huge Entry Barriers
Our Products have Huge Entry Barriers Retaining Acquiring Customers Customers Through persistent investment of time and efforts Product approval cycle especially for leading brands can be as long as 2-3 years Cross Selling Gaining Confidence Opportunities Adapt it to your needs and Move to reliabili
Slide 13: Product Upgradation and Innovation through R & D
Product Upgradation and Innovation through R & D… Software's such as 3D modeling, product life cycle management Certifications: ▪ Approved by Department of Scientific & Industrial Research (DSIR) ▪ Accredited by National Accreditation Structure Design Board for Testing & Calibration Laboratories (NA
Slide 14: Drive ODM business through our R&D capabilities
…drive ODM business through our R&D capabilities One of the few Indian manufacturers with the capability to Amber designs & manufactures Inverter AC Models Amber’s R&D and design and manufacture Inverter ACs product design capabilities R&D 12% Facilities 16% Leads to high 72% Proportion of ODM busin
Slide 15: We are Serving Leadership in the RAC Industry
We are Serving Leadership in the RAC Industry Our Customer commands 75% Market Share Most of the Customers associated with Amber for 5 Years Collaborative Approach for new products with Customers The Brand Names/Model Designations mentioned in the Product List are the property of their respective Le
Slide 16: Experienced Leadership & Management Team
…with Experienced Leadership & Management Team ▪ Over 13 years of experience in RAC ▪ Over 9 years of experience in RAC Manufacturing sector Manufacturing sector ▪ Instrumental in successful commissioning of 6 ▪ Previously worked with Morgan Stanley in factories in last 10 years New York ▪ Initiated
Slide 17: Testimony from our Customers
…with Testimony from our Customers Year Particulars Consistently recognized by customers for performance, infrastructure, quality & support • ‘Best Support: Green Supply Chain’ from Godrej for 2016-2017. • Gold award in relation to green company rating system from CII- 2017 Sohrabji Godrej Green Bus
Slide 18: Product Market Update
Product Market Update
Slide 19: RAC's is highly underpenetrated in India
RAC’s is highly underpenetrated in India RAC Penetration v/s other Consumer Durables Exponential Growth in China 105 100.2 89% India 85% RAC Penetration Global 95 lagged other 96.3 70% 60% consumer durable 94.3 85 30% 75 20% 71.4 10% 65 RAC Penetration 4% crossed 100% 61.2 55 Room AC Refrigerator Wa
Slide 20: Brands are focussed on Asset Light Strategy for growth
Brands are focussed on Asset Light Strategy for growth… FY12 FY17 FY22E Brands focusing on Asset Light Strategy with focus 16% 34% on 44% Innovation, Marketing & Distribution 84% 66% 56% ODMs have economies of OEM/ODM RAC OEM/ODM RAC OEM/ODM RAC scale with qualitative Mn Total RAC Volume OEM/ODM Vol
Slide 21: Solid growth in a Structural Deficit Market
…leading to solid growth in a Structural Deficit Market Break down of RAC Sourcing (FY17) ODM allows faster product development, design support along with manufacturing Imports 15% ODM is a step forward in gaining customer confidence besides acquiring higher wallet share OEM/ODM 34% RAC brands avoid
Slide 22: Huge Opportunity: Underpenetrated & Latent Demand
Huge Opportunity : Underpenetrated & Latent Demand Room AC Washing Machine Refrigerator 30% FPD TV 70% Global Penetration* 85% 89% Huge Potential Existing Underpenetrating per house Aspirational Buying 1-2 Units per House Multiple Units per House Behaviour 1-2 Units Per House 1-2 Units per House Ins
Slide 23: Acquisitions: Access to Future Ready Technology
Acquisitions : Access to Future Ready Technology Mechanical Product Smart Electronic Product
Slide 24: Acquisitions to add Future Ready Technology
Acquisitions to add Future Ready Technology IL JIN Electronics Ever Electronics Mechanical Product to Smart Electronic Product Amber’s Position Growth Drivers Leadership through Innovation 24
Slide 25: Range of Products
Range of Products Leadership through Innovation 25
Slide 26: Glimpse of the Manufacturing Facilities of IL JIN
Glimpse of the Manufacturing Facilities of IL JIN Leadership through Innovation 26
Slide 27: Long Term Value Creation
Long Term Value Creation
Slide 28: Consolidated Operating Performance
Consolidated Operating Performance Rs. (In Crs.) Total Income EBITDA +19.0% 1,652 +18.9% 136 1,236 109 117 1,092 980 81 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 EBIT PAT +7.9% +15.2% 96 29 28 83 86 24 22 63 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Total Income include Rs. ~250 crores Financials are as
Slide 29: Capacity Utilization
Capacity Utilization Adequate Decline in RAC & Non AC Components* additional Imports by RAC 80% Increase in Capacity Utilisation (%) capacity of brands through ROCE RAC & manufacturing 70% Components by OEM/ODM 60% 50% Room Air Conditioners* 40% 1,800 100% 30% 1,586 1,500 1,365 80% 20% 1,200 60% 10%
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Rs. In Crs FY17 FY16 FY15 FY14 Revenue from operations 1,728 1145 1,281 1,014 Excise duty 84 56 51 41 Total Revenue 1,644 1,089 1,230 973 Other Income 8 3 6 6 Total Income 1,652 1,092 1,236 980 Raw Material 1,374 859 1,013 798 Employee Expenses 44 37 34 32 Other
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. In crs Sept-17 Mar-17 Rs. In crs Sept-17 Mar-17 EQUITY & LIABILITIES ASSETS Shareholders Fund Non Current Assets Share Capital 24 24 Fixed Assets 582 578 Reserves & Surplus 339 311 - Non Current Investments TOTAL SHAREHOLDERS FUND 363 335 - Long-term loans and advances
Slide 32: 9MFY18 Standalone Result Highlights
9MFY18 Standalone Result Highlights Revenue* (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) 28% 54% 2402% 1,258 110 28 980 72 1 9MFY17 9MFY18 9MFY17 9MFY18 9MFY17 9MFY18 Growth & Profitability of the Acquisitions yet to yield results Financials are as per IND-AS * Revenue incl. excise duty Leadership thro
Slide 33: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Rs. In Crs 9MFY18 9MFY17 Change Revenue from Operations 1,258 980 28% Excise duty 27 35 Total Revenue 1,231 945 30% Other Income 8 2 Total Income 1,239 947 Raw Material 1,034 790 Employee Expenses 29 26 Other Expenses 65 59 Total Expenses 1,129 875 EBITDA 110 72 54
Slide 34: Strategic Priorities
Strategic Priorities
Slide 35: Strategic Priorities 2018-2020
Strategic Priorities 2018-2020 Product Expansion Customer Expansion Geography Expansion ▪ Special focus on new models of IOT ▪ Increase wallet share per Customer ▪ Increase customer acceptance of based Inverter RAC our products in international ▪ Add RAC components such as ▪ Pre-empt market dynamics
Slide 36: Contact Us
Contact Us Company : Investor Relations Advisors : CIN: U28910PB1990PLC010265 CIN: U74140MH2010PTC204285 Mr. Sudhir Goyal Mr. Sagar Shroff / Ms. Payal Dave sudhirgoyal@ambergroupindia.com sagar.shroff@sgapl.net / payal.dave@sgapl.net +91 98205 19303 / +91 9819916314 www.ambergroupindia.com www.sgapl
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