Elgi Equipments Limited · NSE:ELGIEQUIP
Elgi Equipments — Investor Presentation (February 2023)
62 slides from Elgi Equipments's investor presentation, Feb 25, 2023
Slide 1: Cover letter to stock exchanges with meeting recording link
February 25, 2023 National Stock Exchange of lndia Ltd. BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers C-1, Block G Bandra Kurla Complex Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Through: NEAPS Through: BSE Listing Centre Dear Sir/Madam, Subject: Audio recording link and prese
Slide 2: Compressed Air Solutions for the Future
24th February 2023 Compressed Air Solutions for the Future
Slide 3: Disclaimer
Disclaimer This presentation includes forward-looking information, including statements concerning the outlook for our business. These statements are based on current expectations, estimates, and projections about the factors that may affect our future performance, including global economic conditio
Slide 4: Global Presence
Global Presence 120+ Countries where ELGi does business 28 Countries with direct presence 3 Countries with manufacturing presence Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 3
Slide 5: Company Profile Quick Facts
Company Profile Quick Facts 400+ Distributors Worldwide 2000+ Employees Worldwide 2Mn+ Compressors 5Mn + Sq.ft. Future-Ready Manufacturing Facilities US$303 Mn * Annual Revenue FY 22 *@INR83/US$ Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 4
Slide 6: ELGi Leadership
ELGi Leadership Business Jairam Varadaraj Anvar Jay Varadaraj Chris Ringlstetter Marcelo Lorena Managing Director President – North America President - Europe General Manager - Brazil Praveen Tiwari Rajesh Premchandran Ramesh Ponnuswami MD – ATS ELGI Director - ISAAME Executive Director - OSEA Copyr
Slide 7: ELGi Leadership
ELGi Leadership Corporate Bheem Singh Melchisedec Jayakanthan R Sriram Srinivas Venu Madhav Director - Operations Chief Financial Officer Director – Special Projects Director – Technology Copyright Copyright©©ELGI ELGIEQUIPMENTS EQUIPMENTSLIMITED LIMITED2022 2023| All Rights | All Reserved Rights Re
Slide 8: 5+ Million Sq. Ft. of Future-ready Manufacturing
Global Manufacturing Footprint 5+Million Sq. Ft. of “Future-ready” Manufacturing Facilities Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 7
Slide 9: Global Manufacturing Footprint
Global Manufacturing Footprint Complex Precision Efficient Castings Machining Drives ELGi Foundry 3 state-of-the-art State-of-the-art Produces high manufacturing units in motor manufacturing precision grey and the world with high plant to produce SG iron castings standards of quality highly efficien
Slide 10: Factory Tour
Factory Tour
Slide 11: Key Events
Key Events
Slide 12: Key Product Launch
Key Product Launch ELGi LD Series Launch Launch of high-performance and energy-efficient portable air compressors at EXCON 2022 ELGi unveils its electric-powered PG 110E and the diesel-powered PG 575 – 225 trolley- mounted portable air compressors at Excon 2022. These new products deliver customer-c
Slide 13: Key Product Launch
Key Product Launch ELGi LD Series Launch Launch of intelligent, energy- efficient LD Series two-stage, direct drive, duplex compressor with controller at INTEC 2022 ELGi unveils its 10 HP and 15 HP LD Series duplex controller versions that are future- ready with three intelligent compressor modes th
Slide 14: Key Product Launch
Key Product Launch ELGi LD Series Launch ‘LD Series’ direct-drive reciprocating air compressors introduced in Europe ELGi Compressors Europe launches the 'LD Series' range of lubricated direct drive reciprocating air compressors for the European market. The product was introduced at multiple trade s
Slide 15: Technology Day
Technology Day ELGi's 'State of The Future Art’ continues to drive futuristic technology and innovation ELGi Technology Day The 5th edition of Technology Day recognised the technology team's contributions and complex engineering achievements. with technology breakthroughs, knowledge-sharing sessions
Slide 16: Global Employee Engagement and Community Initiatives
Global Employee Engagement and Community Initiatives Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 15
Slide 17: Community Wellness: #whatsyourfinishline challenge
Community Wellness: #whatsyourfinishline challenge 124 1800+ 27 The 4th edition of the #WhatsYourFinishLine global Teams Participated Countries fitness challenge witnessed highest level of participation The 21-day-long challenge, which culminated on the 6th of November 2022, saw 1874 employees and d
Slide 18: Community Wellness: Coimbatore Marathon 2022
Community Wellness: Coimbatore Marathon 2022 ELGi and the Coimbatore Marathon celebrate 10 years of successful partnership All proceeds from the marathon go to the Coimbatore Cancer Foundation, augmenting efforts to raise cancer awareness, besides improving cancer patients’ and caregivers’ health an
Slide 19: Mental Health Program
Mental Health Program Conducted to promote positive mental health and well-being in our workplaces around the globe. We invited our employees across the globe to commit to a healthier mind - every day. Our employees came together for a series of fun- filled activities and awareness sessions about th
Slide 20: Key Initiatives
Key Initiatives
Slide 21: IoT Imperatives
Integration of Talent Functionality Align Enhancing competency model. INDIA Program Approach IoT Imperatives Rooting talent processes in competencies. Strategic talent review process. + Succession planning process through GLOBAL key position frame work Design Vitality Demystifying performa
Slide 22: Project Update
Project Update Phase 1 - Align – (Completed) Develop robust understanding of ELGi talent essentials through deep Objective diagnostic Enhanced competency Data-driven culture Roadmap for desired model assessment culture Outcomes Design principles for Integrated Talent Socialization of competencies th
Slide 23: Project Update
Project Update Phase 3 - Execute – (In progress) Objective Implement the integrated talent management strategy Filtering assessment for shortlisting talent pool Development Centres for key talent Outcomes Strategic talent review to agree on key talent Targeted development planning for key readiness
Slide 24: Project COSMOS
Project COSMOS 30 To unlock cost ELGi had initiated savings of 3% of ~₹7000Mn FY21 standalone Cost Categories Annual spend project revenue. COSMOS in FY22 to optimise Duration Phase 1 Collaborative full time team material and Diagnose & Design with ELGi and EY members other variable cost elements 10
Slide 25: Project COSMOS Update
Project COSMOS Update Benefits Process Sourcing efficiency ELGi has Benefits Sourcing efficiency standardisation ELGi had initiated project initiated COSMOS to Estimated Annualised cost Key IT integrated Sourcing efficiency project optimise saving achieved ~₹300Mn processes developed to enhanced thr
Slide 26: Digital Transformation – Our Context
Digital Transformation – Our Context What What How Where What we do we improve we do we start we Achieve DX journey to DX journey to Prioritize and Start with India DX journey to enhance improve the demonstrate and take it be the key stakeholders’ capability & quick wins - global enabler for our exp
Slide 27: Key Objectives of Digital Transformation function
Key Objectives of Digital Transformation function • To Improve Digital Quotient of the organization To make Digital Transformation • To support digitalization a key enabler of business processes for achieving Mid term goals and aspirations • To create and support Digital innovation Eco System. Copyr
Slide 28: Digital Transformation (Dx) Road Map
Digital Transformation (Dx) Road Map Sell, Envision, Assess, Educate & Embed. – Roadmap for data driven transformation - Gartner 1 Wave 1 (FY 23-24) 1. Drive awareness and ideation workshops to identify initiatives aligned towards SBP Wave 2 (FY 24-25) 2. Experiment & finalize minimum 3 “start small
Slide 29: ESG Strategy
ESG Strategy Environment, Social, and Governance
Slide 30: Pathway to ELGi's E-S-G strategy
Pathway to ELGi’s E-S-G strategy Captured the perception of Materiality stakeholders and understand and identify the critical aspects and plot them onto a graph E-S-G Strategy for ELGi + • Identify key focus areas across the value chain for = Benchmarked ELGi against its peers comprehensive coverage
Slide 31: Materiality Outcomes: Focus Areas and Management Priorities
Materiality Outcomes: Focus Areas and Management Priorities Focus Management Reporting Areas Priorities Requirements Diversity & Inclusion Resource Product Sustainable Neutral Stewardship Supply Chain Economic Operations Performance Employee Well-being Occupational Human Confidentiality Brand Health
Slide 32: ELGi's ESG Governance Structure
ELGi’s ESG Governance Structure We have formulated a model for ESG governance, which encompasses a two-tier structure comprising our ESG Steering Committee, Functional Sustainability Champions and ELGi’s Sustainability Leader. ELGi Board Oversight of company’s ESG governance and provide inputs as re
Slide 33: Financials
| i Financials / ee /
Slide 34: Revenue (INR Mn) Across all Regions
Revenue (INR Mn) Across all Regions Act FY22 Est FY23 25247 30139 ISAAME OSEA EUROPE North America ATS Growth % Growth % Growth % Growth % Growth % 19% Growth % 8% 31% 28% 33% 13% Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 33
Slide 35: Sales Performance (INR Mn)
Sales Performance (INR Mn) 30139 25,247 19,241 18,635 18,294 16,053 13,701 Auto Equipment Compressors ROW Compressors India FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 E Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 34
Slide 36: EBITDA (INR Mn)
EBITDA (INR Mn) FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 E 3815 2674 2048 1761 1929 1267 1411 Auto Equipment Foreign Subsidiaries India Standalone Europe Expansion Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 35
Slide 37: Net Debt / Cash Surplus (INR Mn)
Net Debt / Cash Surplus (INR Mn) Mar 2022 – Jan 2023 Major movements Cash Profit +4793 Working capital 2,884 -1821 2,599 2,179 Dividend 1,455 1,572 -365 1,151 926 920 Tax 153 -865 Capex Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Jan 2023* -296 *Unaudited Copyright © ELGI
Slide 38: Strategic Business Plan (SBP) - Compressors
Strategic Business Plan (SBP) - Compressors SBP Goals Revenue USD 450 Mn | 10% CAGR India / RoW 40/60 | 7% / 13% ~2/3 of the growth from RoW 450 EBITDA 337 288 16% | 13.7% FY23E 210 221 ROCE (Return on Capital Employed) FY20 Act FY21 Act FY22 Act FY23 Est FY26 SBP 30% | 28% FY23E Copyright © ELGI EQ
Slide 39: Business Region Presentation – North America
Business Region Presentation – North America
Slide 40: ELGi North America – Overview
ELGi North America – Overview Malcolm Lindsay Zeke Hendrix Scott Sutton Greg Hood SVP - ELGi Industrial VP - ELGi Portable VP - ELGi Distribution VP - Pattons Medical Business Business Operations Industrial Portable Pattons Pattons MAS Compressors Compressors Medical Employees 40 12 66 24 28 FY’23E
Slide 41: ELGi North America – Overview Memorable Milestones
ELGi North America – Overview Memorable Milestones 2012 Opened West Coast warehouse to better serve North ELGi Launched ELGi North America, based in Charlotte America from two locations Acquired Pattons & Pattons Medical Acquired Michigan Air Solutions to penetrate a key 2013 Opened new Head
Slide 42: ELGi Industrial Business
ELGi Industrial Business 10 Clear GTM Years in Market Strategy 100+ Customer Channel Partners Service ~4% Strong Market Share Team Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 41
Slide 43: ELGi Industrial Business – Strategic Priorities
ELGi Industrial Business – Strategic Priorities Market Outlook Our Goals Strategic Priorities Expect strong demand Double digit market Focus on scalable Increasing demand for share by FY’26 distribution in Top 40 energy efficiency and oil Drive profitability via Markets free compressors af
Slide 44: ELGi Industrial Business – Channel Evolution
ELGi Industrial Business – Channel Evolution* 2019 2020 2021 2022 2023-FYTD Revenue growing from controlled channel - 19% to 36% CAGR 23% CAGR 125% CAGR 11% *Nexus Go-to-Market project INDEPENDENT JV OWNED to identify top 40 markets and establish entry strategy Copyright © ELGI EQUIPMENTS LIMITED 20
Slide 45: ELGi Industrial Business – Joint Venture Strategy
ELGi Industrial Business – Joint Venture Strategy Overview Partner with compressed air veterans to fund and support the setup of distribution businesses in top 40 markets Partners buy out ELGi share over a period of time with repayment Strong alignment of interests – JVs must prioritise unit s
Slide 46: New Products/ Upgrades
New Products/ Upgrades
Slide 47: OF 90/OF 132/OF 145/OF 160 kW Product Upgrade
OF 90/OF 132/OF 145/OF 160 kW Product Upgrade Best in class SPC Enhanced flow capacity Low noise Improved environmental protection Enhanced consumable life Protection from usage of spurious parts Built with smart controller capable of meeting industry 4.0 requirements Adaptable to th
Slide 48: Under Development
EG 11 to EG 45PM New Product Permanent Magnet Synchronous Motor (PMSM) - Enhanced and efficient capacity control Reliable, Energy efficient up to IE7, High torque Intelligent Thermal Management (iTM) optimal temperature in various operating conditions and turndowns Under Development 55 & 75kW Mode
Slide 49: Compressed Air for Electric Vehicle
Compressed Air for Electric Vehicle New Product Direct drive Compact and light weight Less vibration and noise Variants Specification Variant-1 Variant-2 FAD, lpm 240 360 Working pressure, bar.g 10 10 Power consumption, kW 2.2 3.7 Application 9m bus 12m bus Copyright © ELGI EQUIPMENTS LIMITED
Slide 50: Electric Wiper for Railways
New Product Electric Wiper for Railways Pneumatic Electric Multi speed system Single speed system Precise speed and defined visibility Noisy operation Smooth operation Limited life Enhanced life Copyright © ELGI EQUIPMENTS LIMITED 2023 | All Rights Reserved 49
Slide 51: EQ Series 2.2 to 15kW
Range Expansion EQ Series 2.2 to 15kW Products for value segment Mechanical control system Compact and modular Optional external dryer Designed with standard consumables
Slide 52: EQ Series 11 to 22kW
Range Expansion EQ Series 11 to 22kW Premium Product Price Sensitive Product Products for value segment Meets global requirements Visually differentiated from EG series Compact and Modular – skid and tank mount Optional integrated VFD and external dryer Designed with standard consumables
Slide 53: LD India LD Europe Range Expansion
LD India LD Europe Range Expansion LD India LD Europe Simplex – 3, 5 & 7.5 HP Duplex – 10 & 15 HP Simplex – 3, 5 & 7.5 HP Duplex – 10 & 15 HP CE certified package Star-Delta motor with IE3 equivalent efficiency Indigenous Star-Delta starter with integrated hour meter and emergency stop Soft
Slide 54: PG 110E / PG 132E Range Expansion
PG 110E / PG 132E Range Expansion Best-in-class SPC Enhanced productivity Low noise Improved environmental protection Enhanced consumable life Protection from usage of spurious parts New Models Developed in Description Existing Models 2022-23 Model PG 22E PG 37E PG 45E PG 55E PG 75E PG 9
Slide 55: Outdoor Protection Kit – AB Series
Outdoor Protection Kit – AB Series Feature Enhancement Protection from rain, sunlight, dust, winds and snow IP66 and NEMA4 compliant Adaptable in standard package Modular design across packages Aesthetically and ergonomically designed No impact on performance and reliability Compressor C
Slide 56: Products Launched
Products Launched NEURON-IV F4 Alpha 75kW PG 430 / 330 PG 850 150 AiR~ALERT
Slide 57: Products Under Development
Products Under Development RR10100 / RR15100 OA1/OA2 Alpha F5 SP 90-160kW EQ EN (2.2-15kW) RR10100 DMRC - AIRCOOLED
Slide 58: Feedback Received in 2022
Feedback Received in 2022 S.No. Feedback ELGi’s Response The virtual interaction was “very good” and extremely helpful. However, the plant visit gives a Plant visits arranged for those who will be 1 lot of perspective and would be glad if we can visiting for first time. hopefully schedule that next
Slide 59: Feedback Received in 2022
Feedback Received in 2022 S.No. Feedback ELGi’s Response Plant videos were good and elaborate, more inputs/ slide deck on segments/ applications of We have covered this as part of the 4 ELGi’s portfolio, new growth areas and outlook investors’ presentation. would be appreciated As explained in the p
Slide 60: Feedback Received in 2022
Feedback Received in 2022 S.No. Feedback ELGi’s Response Where are we in the pecking order currently 7 Sixth. versus our ambitions? Kaishan from China is expanding its Is there any new player from emerging market like footprint. 8 Turkey etc. who have become aggressive and how we would like to tackl
Slide 61: Feedback Received in 2022
Feedback Received in 2022 S.No. Feedback ELGi’s Response All information which are not competitive in nature and where the information is Would appreciate more details on global sales mix, concrete, are covered in the investor’s market size, market shares and relative presentation. 10 positioning of
Slide 62: Thank you
ELGi eo Thank you
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