Slide 1: Varroc Engineering Limited
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2022-23/110 February 7, 2023 To, The Manager- Listi
Slide 2: Financial Results Q3 FY23
Financial Results Q3 FY23 7th Feb 2023
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Content
Content 1. Highlights 2. Industry Performance 3. Financials 4. New Business Win 5. Opportunity in Mega Trends and Focus Area 6. Awards & CSR 7 Annexure: 1. About Varroc Engineering Confidential
Slide 5: Highlights Q3 FY23
Highlights Q3 FY23 1. On 6th October 2022, completed the divestment of 4W Lighting business in Europe and America. 2. Outperformed market with 15.3% growth on YoY basis with Revenue in Q3 FY23 at Rs. 17228 million 3. Lifetime business won from new orders in 9M FY23 of Rs.35.65 billion incl. Rs. 8.9
Slide 6: Automotive Production in India
Automotive Production in India 5.65 Units in million • 2W production saw tepid growth on YoY because of early festive season this year compared to last year whereas other segments saw growth due to improved economic activity and easing of 4.60 4.58 semiconductor issues • 2W grew by 0.5% • 3W grew by
Slide 7: Consolidated Financials of Continued Operations
Consolidated Financials of Continued Operations Quarter Summary Rs. in Million Q3 FY23 Q3 FY22 Q2 FY23 9M FY23 9M FY22 YoY 15.3%; QoQ 6.1% Revenue* 17,228 14,936 18,341 51,921 42,082 Adjusted EBITDA^ 1,345 952 1,681 4,372 2,883 YoY 140 bps; QoQ 140 bps; Adjusted EBITDA Margin 7.8% 6.4% 9.2% 8.4% 6.9
Slide 8: Revenue Breakdown for 9M FY23 for Continued Operations
Revenue Breakdown for 9M FY23 for Continued Operations Business Unit Segment IMES, 3.9% Others, 3.9% Lighting, PBU, 31.7% 4 Wheeler, 22.0% 25.6% MBU, 11.8% 2&3 Wheeler, EBU, 21.9% 70.5% Aftermarket , 8.8% Geography Customer Outside India, 18.9% Bajaj, 38.1% Other Customers, 61.9% India, 81.1% Confid
Slide 9: New Lifetime Order Win in 9M FY23 is Rs. 35,653 million
New Lifetime Order Win in 9M FY23 is Rs. 35,653 million Lifetime Business win of Rs.35,653 Million Lifetime Revenue win from ICE & EV Players Start of Production Rs. In Million 8917 FY23 14,263 FY24 5,725 25% EV ICE FY25 Onwards 15,665 26736 75% Lifetime Revenue win from Customers Lifetime Revenue w
Slide 10: EV a Big-Opportunity (New Products in Various BU)
EV a Big-Opportunity (New Products in Various BU) R&D efforts are directed towards ongoing trends Increased Use Stricter Environmental Electrification Autonomous Driving Connectivity Digitalization & IoT Sustainability, Reliability & of Electronics Regulation Efficiency WE OFFER WIDE RANGE OF PRODUC
Slide 11: EV Business won So Far: Highlights and Updates
EV Business won So Far: Highlights and Updates Expected revenue in FY25 Industry product price Total @ Installed for current business based Component averages (Rs per 2W) Capacity (Rs Crs) # on SOB and industry price (Rs Crs) Traction motor 11,000 2W Controller 5,000 DC-DC converter 1,400 866 750 Te
Slide 12: Focus areas for Varroc
Focus areas for Varroc Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure t
Slide 13: Awards & CSR
AWARDS & CSR Certificate of Merit in EHS awarded by National Safety Council Breakthrough in Kaizen under Jury Challenge awarded by CII Indian Manufacturing Excellence Gold & Silver Award by Frost & Sullivan Varroc Cricket Tournament 2022 The tournament began from 18th Nov 2022 with matches in 2 cate
Slide 14: Annexure: About Varroc
rn’ J verroc EXCELLENCE Annexure 1 : About Varroc — eS Gro" _ & ed
Slide 15: About Us
AboutUs Varroc is a Leading Indian Auto Technology Group with a Global Footprint Four primary business lines: • Founded in 1988 in Aurangabad, India by the Jain family • Successful listing on the Indian Stock Exchanges in July 2018 • Strong, long-lasting, growing customer relationships with marquee
Slide 16: Our Journey
Our Journey Varroc’s Transformation into a GlobalAuto Technology Group Polymer Business Acquired Forging Acquired Visteon’s global PV Signed an MoU with Candera GmbH company, IMES, Italy lighting business (now VLS) Varroc Engineering Limited to integrate HMI (Human Machine 1990 listed on the Indian
Slide 17: Symmetric Representation of Varroc (Post Divestment)
Symmetric Representation of Varroc (Post Divestment) Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures Overseas Subsidiaries India Subsidiaries’ & JV ● Varroc TYC (China JV for ● IMES ITALY ● Electrical and Electron
Slide 18: Global Business with Diversified Product Lines
Global Business with Diversified Product Lines INDIAN Operations (76.4%) EUROPEAN Operations (13.0%) CHINA JV (10.6%) Polymer Electrical & Electronics (Includes Lighting) Metallic Global Lighting Electronics Metallic (IMES) Lighting • Supplies precision forged & • Focus on ADAS, Lighting • Global su
Slide 19: Board & Leadership Team
Board & Leadership Team Independent Directors Arjun Jain Vidyadhar Limaye President – Electrical Business Unit and President –Polymer Business Marc Szulewicz Whole-time Director • Total Experience: ~34 years Ex-General Manager, • Previously associated with IAC • Total Experience: ~10 years Foreign e
Slide 20: Trends @ Varroc
Trends@Varroc For us, innovation is the ability to see GREENER FOCUS ON EV change as an opportunity, not a threat. •Traction Motor and Controller •DC DC Converter •Onboard Charger Global mobility trends we consistently •Battery Management System work towards: FOCUS ON SUSTAINABLE MATERIALS FOR Green
Slide 21: Trends @ Varroc
Trends@Varroc For us, innovation is the ability to see change as an opportunity, not a threat. SAFER SMARTER & CONNECTED •Connected Clusters •EFI ECU •ADB (Adaptive Driving Beam) •TBT (Turn By Turn) Indicator •Matrix Technology in Lighting •Duel Injection Tailgate Carriers •Laser Boosted Headlamps •
Slide 22: Electrification and Efficiency; Connectivity and Digitization
Electrification and Efficiency Connectivity and Digitization 48V-epowertrain platform for LCD to TFT and Connected small vehicles • Android/Car-play OS • Consists of basic units (on board charger, inverter • WiFi/BTLE and DC/DC converter) with PMSM Motor. Total power • Smartphone usage • Digital Key
Slide 23: Customer Centric Manufacturing Company
Customer Centric Manufacturing Company BD & KAM WHAT NEXT AGILITY PROXIMITY DIGITALIIZATION STRUCTURE (INNOVATION)
Slide 24: Cost Leadership in Manufacturing
Cost Leadership in Manufacturing 1 SOURCING 2 VALUE ADDITION & VALUE ENGINEERING 3 INDUSTRY 4.0 (Smart Factories)
Slide 25: Cross Business Unit Collaboration
Cross Business Unit Collaboration 4W ORVM Traction Mirror Motors ORVM With Tailgate Camera Liner System Cross BU Collaboration Spoiler Console Lighting Door Trim Swing Type Illumination Electric Footstep
Slide 26: Why Varroc?
Why Varroc? Varroc’s Vision Statement Q - High Reliability To bring leading-edge technologies to the mainstream markets • Reuse of proven designs • APQP methodology, layered process Audits, Sustenance with high quality and cost competitive solutions by delivering Audits ensures high quality & reliab
Slide 27: Thank you
Thank you Sincerity Humility Integrity Passion Self-Discipline To speak and actfrom To walk with everyone To do what is right To go the distance To make it al happen the heart against al odds