Slide 1: Investor Presentation September 2019
Investor Presentation September 2019
Slide 2: Contents
Contents 1 Company Snapshot 3 2 Key Milestones 4 3 Technocrat Management 5 4 Business Model 10 5 Competitive Edge 11 6 Combat Training Centre 16 7 Financial Overview 20 8 Growth Drivers 26 © Zen Technologies Limited – All Rights Reserved. 2
Slide 3: Zen: Snapshot
Zen: Snapshot Defence Training In-house R&D Created Listed On Solution Player Products BSE and NSE Customers - Armed Forces, Installed Base of more Zen Product Results in State Police Forces & Para than Google Searches Military Forces of Various 1,000 Simulators Countries © Zen Technologies Limited
Slide 4: Milestones
Milestones BMP Driving Simulator Zen Combat & BMP Integrated Training Centre Missile Simulator Launch Launch Listing on NSE Company Incorporation R&D recognised by Tank Simulator Indian Govt Launch 1993 1996 1998 2002 2004 2006 2008 2009 2011 2012 2013 2015 2016 2017 2018 Listing on BSE UAV First Sa
Slide 5: Large Opportunity Size
Large Opportunity Size Indian Army training Combat Training Centre requirement of 8000 Cr Abundant Export Opportunities Handful of companies Operational Preparedness Increasingly globally Important in Europe, Middle East and Africa Large value add to the forces with simulated war- Cost of Ad
Slide 6: Zen's Business Model
Zen’s Business Model Pioneering Defence Revenue Drivers Training Solution Simulator Products Provider Orders are of large size and have long closing cycles resulting in revenue volatility Balancing the product First mover advantage with many soldiers having trained on company’s products and
Slide 7: Competitive Edge
Competitive Edge Focused R&D driven organisation Total IPR Applications R&D Driven prototyping to develop state of the art training simulators 92 Over 90 in-house researchers working on specialised in-house created domain libraries Collaboration with universities to further augment research ca
Slide 8: Zen Technologies Competitive Edge
Zen Technologies Competitive Edge Comprehensive product range More than 50 simulator and other training Complete in-house skills products for varied training needs Comprehensive Customised Training solutions with Combat Training Centre Electronics Optics Credibility with 25-year track record G
Slide 9: Moving Up The Complexity Pyramid
Moving Up The Complexity Pyramid Networked with Geo Specific Terrains Instrumented (Live Simulation) Live Firing ranges CTC : Advanced scoring and analytics Command Training Centre Real terrain & equipment Virtual Simulators Seamless Laser, Sensors, GPS and Wireless communication TacSim,
Slide 10: Simulator Life Cycle
Simulator Life Cycle -3 to 0 Years: 0-2 Years: Presales and product New product sale X specifications 8-15 Years: 3-7 Years: AMC & Upgrades: 0.75X AMC ~9% pa of sale 0.45X Simulator sale of X creates a future revenue potential of 1.2X over the product life © Zen Technologies Limited – All Rights Res
Slide 11: Simulator Product List
Simulator Product List Defence Homeland Security 81mm Mortar Integrated Simulator Medium Machine Gun Simulator 81mm Mortar Integrated Master Control Station for Live- Advanced Weapons Simulator Multi-Functional Target System Simulator Firing Ranges Air-to-Ground Firing Range Scoring
Slide 12: What's the most important question for armed forces?
WHAT’S THE MOST IMPORTANT QUESTION FOR ARMED FORCES?
Slide 13: Are You Combat Ready?
Are You Combat Ready? 9/23/2019
Slide 14: Combat Training Centre
Combat Training Centre Control Center Virtual Domain © Zen Technologies Limited – All Rights Reserved. 14
Slide 15: Zen CTC: One Stop Solution for higher Combat Readiness
Zen CTC: One Stop Solution for higher Combat Readiness Immense Helps overcome challenges Cost Saving to combat training Combat Readiness: Measurement And Much higher, Measured Recording: and ‘Scored’ Powerful scoring model Integrated, wholesome combination of all types of training systems: Live, Las
Slide 16: Facilities
Facilities Corporate Head Office 27,000 Sq. Ft. B-42 Industrial Estate, Sanath Nagar, Hyderabad Production Division 75,000 Sq. Ft. built up on 8.55 acre land Hardware Park, Maheshwaram, Hyderabad New R&D centre 25,000 Sq. Ft. Floor No.11 and 12, Signature Towers, Kondapur, Hyderabad © Zen Technologi
Slide 17: Financials
Financials Figures in INR Millions 2014 2015 2016 2017 2018 2019 Sales 463.5 785.5 526.1 616.5 389.6 922.2 Sale of Products 432.6 715.3 425.3 486.7 184.3 698.9 Sale of Services 30.9 70.2 100.8 129.8 205.3 223.3 Gross Profit 341.5 542.1 378.7 494.5 323.1 615.6 R&D Expenses 148.55 130.7 142.96 127.24
Slide 18: Balance Sheet
Balance Sheet Figures in INR Millions 2014 2015 2016 2017 2018 2019 Net Worth 985.6 1,110.5 1,124.4 1,196.1 1,184.2 1410.1 Long-Term Borrowings 44.4 36.8 77.6 58.0 32.7 88.0 Short-Term Borrowings 124.8 348.2 295.0 21.6 68.3 329.9 Trade Payables 20.9 31.2 20.9 30.7 34.7 75.2 Fixed Assets 438.7 440.6
Slide 19: Financial Details
Financial Details Figures in INR Millions SALES SALE OF PRODUCT Figures in INR Millions 922.2 715.3 698.9 785.5 616.5 486.7 463.5 526.1 432.6 425.3 389.6 184.3 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 SALE OF SERVICES Figures in INR Millions GROSS MARGINS Figures in INR Millions 6
Slide 20: Financial Details
Financial Details Figures in INR Millions Figures in INR Millions EBITDA EXCLUDING R&D R&D EXPENSES 372.7 348.2 148.55 142.96 130.7 127.24 128.3 122.7 276.94 248.2 239 109.8 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Figures in INR Millions Figures in INR Millions OPERATING EXPENSES
Slide 21: Financial Details
Financial Details Figures in INR Millions Figures in INR Millions NETWORTH LONG TERM DEBT 1,410.1 88 1,124.4 1,196.1 1,184.2 77.6 1,110.5 985.6 58 44.4 36.8 32.7 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 TOTAL ORDER BOOK Figures in INR Millions AMC ORDERBOOK Figures in INR Millions
Slide 22: Export Order Status
Export Order Status • 64 Crore Export Order Signed around end-2017 • Execution not yet started due to customer-end documentation delays including opening of L/C • Process still pending at the customer-end © Zen Technologies Limited – All Rights Reserved. 22
Slide 23: Change in Exports Approach
Change in Exports Approach • Tremendous Indian Govt Support • Focus on countries friendly to India • Direct approach to various Govts via Indian Embassies • Less Focus on Exports from USA • Scale down operations in USA and, further, ramp up from India © Zen Technologies Limited – All Rights Reserved
Slide 24: Regulatory Tailwinds
Regulatory Tailwinds Industry can suo moto come up with solutions which can solve or address the challenges faced by Indian Army For accepted solutions the Indian armed forces will give a go ahead MAKE II procedure in to develop such a system the DPP 2016 Indian armed forces will assure the ac
Slide 25: Growth Drivers
Growth Drivers 1 2 3 AMC Domestic Exports Annual Maintenance Contracts Conducive regulatory regime has Target smaller erstwhile ignored AMC CAGR of 38.5% over last 5 opened erstwhile closed single markets through tailored training years vendor business opportunities solution Simulator sales
Slide 26: Thank You
THANK YOU DISCLAIMER: C E R T A I N S T A T E M E N T S I N T H IS P R E S E N T A T IO N C O N C E R N IN G O U R F U T U R E G R O W T H P R O S P E C T S A R E F O R W A R D - LO O K IN G S T A T E M E N T S , W H IC H IN V O L V E A N U M B E R O F R IS K S A N D U N C E R T A I N T I E S T H A