Amber Enterprises India Ltd. · NSE:AMBER
Amber Enterprises India — Investor Presentation (August 2020)
29 slides from Amber Enterprises India's investor presentation, August 2020
Slide 1: Investor Presentation August 2020
Investor Presentation August 2020 Amber Enterprises India Limited 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Amber Enterprises Limited (“Company”) together with its subsidiaries (together, with the Company, the “Group”) only, without regard to any specific objectives, suitability, financial situations and needs of
Slide 3: Company Overview
Company Overview K: amber
Slide 4: Amber At A Glance
Amber At A Glance Overview Key numbers Leading One-Stop solution provider for India’s HVAC Industry 23.6% Share in Total RAC market1 One of the most backward integrated manufacturer of ACs for static and mobility 51.0% Share in Railways2 applications 15 Manufacturing Plants across 6 states3 Leading
Slide 5: Key Milestones in Our Journey
Key Milestones in Our Journey Incorporated in Started Noida Dehradun Unit Acquisition of Acquisition of Acquisition of Jalandhar, Punjab Ecotech Unit 6 established PICL ILJIN Sidwal Exit to Green Started Dehradun Dehradun Unit Jhajjhar Unit India Venture IPO Unit 4 for LG 5 established established F
Slide 6: One-Stop HVAC Solution Provider for Static and Mobility Applications
One-Stop HVAC Solution Provider for Static and Mobility Applications… Static Applications Mobility Applications Residential Systems Railways & Metro Systems Light Commercial Cassette Bus Air Conditioners Light Commercial Ducted & Mini Splits Défense Applications Leadership through Innovation 6
Slide 7: A Leading Manufacturer and Supplier of Critical Components
…and a Leading Manufacturer and Supplier of Critical Components Heat Exchangers PCBA (Home Appliances) Annual Capacity : 7 million coils Annual Capacity: 10.5 million PCBA Customer Base Customer Base ▪ LG, Daikin, Panasonic and captive ▪ LG, IFB, Panasonic, Hitachi, Bluestar, Voltas, usage Carrier M
Slide 8: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Dehradun (Plant 2,3 & 4) Rajpura (Plant 1) Gr. Noida (Plant 5 & 6) ▪ RAC (IDU, ODU &WAC), Heat ▪ R&D Lab, Tool room & sheet ▪ Sheet metal parts for AC, Exchangers, System tubing, metal parts refrigerator, microwave, Plastic molding & Sheet metal parts w
Slide 9: Successfully Integrated Acquired Companies
Successfully Integrated Acquired Companies ▪ Largest induction motor manufacturer for ▪ Iljin & Ever are market leader in PCB ▪ Wide product offering in mobility applications HVAC industry in India manufacturing and Assembly ▪ 1st company to provide indigenised solutions ▪ 200+ Models and serving ma
Slide 10: Experienced Leadership & Senior Management Team
Experienced Leadership & Senior Management Team ▪ Over 15 years of experience in RAC ▪ Over 11 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, USA ▪ Ha
Slide 11: Performance Since IPO
Performance Since IPO Robust Revenue Growth Strong Operating EBITDA Growth Strong PAT Growth INR (mn) INR (mn) INR (mn) 3,262 39,628 1,641 2,129 27,520 1,835 948 21,281 623 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 2 Acquisitions 11 New customers added 12 New product launches 3 New plants1 18.5%
Slide 12: Diversifying Revenue Across Segments
Diversifying Revenue Across Segments 6% 28% 37% 33% FY18 FY19 FY20 63% 61% 72% RAC Components Mobility Applications RAC Revenue Components Revenue INR mn INR mn 13,115 24,253 10,112 17,408 15,404 5,877 FY18 FY19 FY20 FY18 FY19 FY20 Note: Financials based on consolidated figures Leadership through In
Slide 13: Key Value Proposition
Key Value Proposition Kz amber
Slide 14: Key Value Proposition
Key Value Proposition MARKET LEADERSHIP IN GROWING RAC R&D AND PRODUCT DESIGN CAPABILITIES OEM/ODM INDUSTRY LEADING TO HIGH PROPORTION OF ODM ◼ Strong sector tailwinds BUSINESS ◼ 150+ strong R&D team equipped with best in ◼ 23.6%1 market share of overall RAC volumes class infrastructure and software
Slide 15: Strong Sector Tailwinds
Strong Sector Tailwinds AC is one of the 12 champion sectors Import substitution of INR 102 bn of identified by GOI to make India a global RAC and its components presents a manufacturing hub significant opportunity “China plus one” strategy adopted by Global manufacturers to diversify Significant ex
Slide 16: Significant Growth in India HVAC Driven by Low Penetration Levels
Significant Growth in India HVAC Driven by Low Penetration Levels RAC is under-penetrated v/s other consumer durables; offers RAC penetration in India is significantly below Global/Asian markets maximum headroom for growth, FY15 89% 100% 85% 91% 70% 60% 54% 30% 20% 30% 10% 4% 4% Room AC Refrigerator
Slide 17: Amber is a Market Leader in India HVAC Industry
Amber is a Market Leader in India HVAC Industry RAC Market in India RAC Volumes (mn) 8.6 6.9 7.7 5.5 6.2 4.7 3.0 FY12 FY17 FY18E FY19E FY20E FY21E FY22E Consistently increasing market share in Indian RAC industry 14.7% 19.1% 23.6% FY15 FY17 FY20^ 80.9% 76.4% 85.3% Source: F&S Report 2017; ^ Based on
Slide 18: Well Placed to Capture HVAC Demand From Railways & Metros
Well Placed to Capture HVAC Demand From Railways & Metros Increase in share of Railway AC coach manufacturing to 40% in FY20 Consistently increasing market share 2,100 1,260 40% FY18^ 51% FY20^ 49% 3,180 3,100 60% FY18 FY20 Non AC Coach AC Coach Urban transportation infrastructure in India foreseein
Slide 19: High Degree of Backward Integration
High Degree of Backward Integration Amber manufactures up to 63% of the Inverter ODU and 80% of the Inverter IDU in terms of bills of materials Inverter ODU Inverter IDU Amber offers critical & reliability functional components 8% 20% Compressors are largely imported Compressors by all brands are la
Slide 20: Strong R&D Capabilities
Strong R&D Capabilities Approved by Department of Scientific & Industrial Research (DSIR) 4 Facilities: ✓ 3-D CAD , Unigraphics ✓ Siemens Team Centre Systems ✓ Product Launch Control through NPI ✓ 10 Psychometric labs Facility ✓ Anechoic sound chambers ✓ EMI / EMC Setup ✓ ROHS & Product Safety valid
Slide 21: Strong Financial Performance – Consolidated
Strong Financial Performance – Consolidated Robust Revenue Growth Strong Operating EBITDA Growth Strong PAT Growth INR (mn) INR (mn) INR (mn) 3,262 39,628 1,641 2,129 27,520 1,835 948 21,281 1,305 16,519 1,145 623 10,890 241 221 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 F
Slide 22: Growth Strategy
Growth Strategy Ke amber
Slide 23: Growth Strategy
Growth Strategy ▪ Expansion of existing product portfolio with a focus on ODM o Continue to add new product offerings; new models of IOT based Inverter RAC, ACs for mobility applications like trains and metro coaches o Add RAC components such as brushless DC Motor, Resin-core motors & inverter contr
Slide 24: Appendix
Appendix
Slide 25: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account INR mn FY16 FY17 FY18 FY19 FY20 REVENUE Revenue from operations 10,890 16,519 21,281 27,520 39,628 Other income 31 88 87 99 82 Total revenue 10,921 16,607 21,368 27,619 39,710 EXPENSES Cost of materials consumed 8,649 13,987 17,521 23,367 33,247 Changes in inventor
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet INR mn FY16 FY17 FY18 FY19 FY20 Shareholders’ funds 2,626 3,627 8,928 9,861 11,284 Minority interest 0 0 0 190 348 Long-term borrowings 1,598 2,219 433 1,412 1,388 Other Non-current liabilities 554 129 639 794 1,540 Short-term borrowings 2,681 1,522 622 895 1,817 Other Cur
Slide 27: Growth of Indian OEM/ODM RAC Players Driven by Import Substitution and ODM Focus
Growth of Indian OEM/ODM RAC Players Driven by Import Substitution and ODM Focus Reasons behind Imports from China losing volumes in favour of Indian OEM/ODM Higher Make in India Availability of High lead High Labour logistics cost and other scaled Indian time of 40-45 Cost in China & working policy
Slide 28: Stock Performance and Shareholding
Stock Performance and Shareholding Amber has outperformed broader market Sensex Amber 36,0341 42,000 38,7992 32,000 22,000 1,8242 1,2371 12,000 2,000 Jan-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 -8,000 Shareholding Pattern (as of June 2020) Key Institutional Investors
Slide 29: THANK YOU
THANK YOU | a
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