Slide 1: Cover letter to stock exchanges: Investor Presentation
Ref: CEL/NSEBSE/IP/25082021 25th August, 2021 To, Listing Department Department of Corporate Services ‐ Listing National Stock Exchange of India Limited BSE Limited Exchange Plaza, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Re: Scrip Symbol: CE
Slide 2: Investor Presentation August 2021
INVESTOR PRESENTATION AUGUST 2021
Slide 3: Snapshot
Snapshot 25+ years of domain expertise in Global Operations with strong Concept to Commissioning 1,800 Employees Electronics Design & Manufacturing presence in India, Europe and North capabilities 650 Designers Solutions America Flexible Engagement Models Strong Supply Chain Network Strong relations
Slide 4: Company Overview
Company Overview • Founded in 1993, Centum Electronics Limited FY22 Key Business Segments: (Centum) is one of the largest Electronics System Operational Income (In Mn) and EBITDA • Engineering R&D (ER&D) Services (34%) – Involves Design and Manufacturing (ESDM) companies in conceptualizing and desig
Slide 5: Key Milestones
Key Milestones • Greenfield expansion for EMS capacity • Acquisition of Adetel Group to expand service offerings of ER&D Services, establish global footprint across Europe and 2016-2020 North America and new customer/market access Future Proof • Exit from FCP component business through the sale of 5
Slide 6: Board of Directors
Board of Directors Apparao V Mallavarapu - Chairman & MD Rajiv C Mody - Independent Director Apparao (Rao) V Mallavarapu founded Centum Electronics in the year 1993. Mr. Rajiv C Mody is the Founder, Chairman, Managing Director & CEO, of Sasken Under his able leadership Centum has grown to become one
Slide 7: Key Management Personnel
Key Management Personnel K S Desikan - Chief Financial Officer Vinod Chippalkatti - President - SEBU K S Desikan has been serving as CFO at Centum since 2001 and Vinod Chippalkatti is responsible for the Build to Spec business in has been instrumental in the development of the strategy and Centum de
Slide 8: Geographical Presence
Geographical Presence Canada UK Belgium France USA India Design Team Manufacturing Sales & Support 7
Slide 9: Manufacturing Facilities
Manufacturing Facilities Canada Design Department - France Micro Electronics Manufacturing - Bangalore New Facility in Bangalore Aerospace Park EMS Manufacturing - Bangalore Testing Lab - Bangalore 8
Slide 10: Awards & Recognition in Last Few Years
Awards & Recognition in Last Few Years Highest Growth – Electronic Global Growth Centum in Forbes Asia’s Electronics Man of the Hardware Exporter Company 200 BUB list Year Best Electronics Champion Of Innovation Best Electronic System Excellence in Financial Manufacturing Company In (Mr Mallavarapu
Slide 11: Certifications
Certifications IATF 16949 BUREAU VERITAS Certification Aerospace Medical Automotive Railways ISO 9001 AS/EN9100 Rev D ISO13485 IATF 16949 IRIS - Rev 2 French R&D Information Security ESD 20:20 Approved R&D Environment certification & Management facility by DST & ISO14001 system ISO 27001 GOI Health
Slide 12: Centum's Value Proposition
Centum’s Value Proposition • Global Footprint close • Competitive • Integrated Fast New • Strong Domain Expertise to the customers Engineering R&D by Program Management to conceptualize & balancing on- can reduce time to realize High-Reliability • Uniquely positioned as shore/offshore mix market, su
Slide 13: Future Growth Strategy
Future Growth Strategy Deeper entrenchment of customers by offering one-stop- Clear focus towards achieving shop solutions with vertically sustainable growth, while integrated capabilities and enhancing margin profile by value-added services reducing costs and deleveraging Expand customer portfolio
Slide 14: Business Overview
© BUSINESS OVERVIEW
Slide 15: Business Segments and Sectors Served
Business Segments and Sectors Served ER&D EMS BTS Defence CONCEPTUALIZE DESIGN PROTOTYPE & PILOT MASS AFTERMARKET / SPECIFY VERIFY PRODUCTION PRODUCTION LIFE CYCLE SUPPORT Space • Feasibility • Hardware design • Electrical CAD • Qualification • Manufacturing • Value engineering batch Aerospace • Arc
Slide 16: Engineering R&D Services (ER&D)
Engineering R&D Services (ER&D) • Engineering Services involve conceptualizing, designing and certifying of Electronic Hardware, Embedded Software, FPGA, Analog, Radio Frequency products, Power Electronics, etc. • Centum Group has a global design strength of over 650 design engineers and for the las
Slide 17: Electronic Manufacturing Services (EMS)
Electronic Manufacturing Services (EMS) • The company’s EMS Services include manufacturing solutions focused on a High reliability, High Complexity products in the high technology segment • Centum offers a wide range of manufacturing solutions from Printed Circuit Board assemblies to Complex box bui
Slide 18: Build to Specification (BTS)
Build to Specification (BTS) • The Built to Specification services include taking a project from conceptualization to mass production quickly and efficiently. Centum’s unique positioning with a full range of integrated capabilities makes it the ideal product realization partner. • Customers choose t
Slide 19: Aerospace, Space & Defence
Aerospace, Space & Defence AEROSPACE • The Aerospace industry has several ongoing technological initiatives to make aircrafts more fuel-efficient, environmentally friendly and safer, which involves incorporating more electronics on board, making avionics platforms more configurable, and of course fa
Slide 20: Industrial & Energy
Industrial & Energy • The digital transformation in utilities, infrastructure and manufacturing among other industrial segments is driving new products that are smart, collaborative and result in efficiencies for end-users. • Centum enables its customer to realize such products for applications in I
Slide 21: Healthcare
Healthcare • The field of healthcare is rapidly adopting new technologies to augment the quality of treatment and create efficiencies for healthcare providers. • Centum has engineered a variety of medical devices and equipment for the Healthcare industry that include digital radiography systems, aut
Slide 22: Transportation & Automotive
Transportation & Automotive TRANSPORTATION AUTOMOTIVE • Centum is at the forefront of the Transportation sector • The automotive industry is going through a dynamic working very closely with the leading global OEMs transformation with new players entering the market and rail operators on developing
Slide 23: Industry Overview
© INDUSTRY OVERVIEW
Slide 24: ESDM Industry
ESDM Industry Global Electronic Market Size (USD Tn) • During 2019 2025, the global electronics industry is expected to grow at a CAGR of 3% to reach a 7.5 7.30 size of over USD 7.3 Tn by 2025. 7.10 6.90 7 6.70 6.50 • In a span of two years, India’s export of electronic goods has grown 85% to reach
Slide 25: Space, Defence, Transportation & Other Industries
Space, Defence, Transportation & Other Industries • Defence: In India, the defence capital outlay stood at around INR 1.1 Lakh Cr for FY20 and has grown at a 7% Defence Production Ordanance CAGR over in the past 5 years. This trend is expected to continue given the geopolitical scenario and recent f
Slide 26: Engineering R&D Service Industry
Engineering R&D Service Industry • Global engineering R&D services outsourcing market is anticipated to reach more than USD 650 billion by 2025 according to a new report published by The marker research report. The major Engineering R&D* (USD Bn) factors which are driving this market are the access
Slide 27: Financial Overview
© FINANCIAL OVERVIEW
Slide 28: Standalone Income Statement
Standalone Income Statement Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Operational Income 4,987 4,824 4,245 602 Total Expenses 4,290 4,111 3,621 621 EBITDA 697 713 624 (19) EBITDA Margins (%) 13.98% 14.78% 14.70% NA Other Income 38 43 39 12 Depreciation 121 132 158 41 Finance Cost 268 277 174 44 Ex
Slide 29: Standalone Balance Sheet
Standalone Balance Sheet Particulars (INR Mn) FY19 FY20 FY21 Particulars (INR Mn) FY19 FY20 FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2,039 2,118 2,110 Equity 2,172 2,363 2,547 (a) Property, Plant & Equipment 972 1,116 1,075 Share Capital 129 129 129 (b) Capital Work in progress 71 14 23
Slide 30: Consolidated Income Statement
Consolidated Income Statement Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Operational Revenue 9,304 8,833 8,174 1,744 Total Expenses 8,267 7,852 7,279 1,648 EBITDA 1,037 981 895 96 EBITDA Margin (%) 11.15% 11.11% 10.95% 5.50% Other Income 71 153 58 17 Depreciation 278 414 453 111 Finance Cost 349 36
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Mn) FY19 FY20 FY21 Particulars (INR Mn) FY19 FY20 FY21 ASSETS EQUITY AND LIABILITIES (1) Non-current assets 2,981 3,759 3611 (1) Equity 2,437 2,300 2,401 (a) Property, Plant and Equipment 1,130 1,253 1,184 (a) Equity share capital 129 129 129 (b) Capital w
Slide 32: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue EBITDA & EBITDA Margin (%) PAT & PAT Margin (%)* 9,304 8,833 * 8,174 1200 11.16% 11.11% 10.95% 12.00% 500 5.31% 6.00% 7,811 450 5.06% 7,032 1000 10.00% 5.00% 7.94% 400 981 8.00% 350 4.00% 1,038 800 300 5.11% 6.00% 250 3.00% 1.90% 600 558 895 200
Slide 33: Capital Market Data
Capital Market Data Stock Market Performance (as on 30th June, 2021) 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Centum Sensex Shareholding Pattern (as on 30th June, 2021) Price Data (as on 30th June 2021) CMP 396.9 52
Slide 34: Disclaimer
Disclaimer Centum Electronics 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 eve