Black Box Limited · NSE:BBOX
Black Box — Q3 FY2022 Earnings Presentation
53 slides from Black Box's earnings presentation, Feb 12, 2022
Slide 1: Exchange filing cover letter
Telephone: +91 22 6661 7272 | Email: marketing.india@blackbox.com BBOX/SD/SE/2022/16 February 12, 2022 Corporate Relationship Department Corporate Relationship Department Bombay Stock Exchange Limited National Stock Exchange Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Fo
Slide 2: Investor Presentation Q3 & 9MFY22
Black Box Ltd. INVESTOR PRESENTATION Q3 & 9MFY22 TRANSFORM SUSTAIN & GROW
Slide 3: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by AGC Networks Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: Integration of Black Box and AGC Networks complete
The integration of the erstwhile NASDAQ listed Black Box Corporation & AGC is now Networks which began in 2019 is now complete ONE NAME. ONE BRAND. ONE LANGUAGE Today, we are bigger and better — with a combined workforce of 3,500 highly skilled and talented professionals who have helped us to... Exp
Slide 5: Q3 & 9MFY22 Highlights
Q3 & 9MFY22 HIGHLIGHTS TRANSFORM SUSTAIN & GROW 4
Slide 6: Q3 & 9MFY22 Highlights
Q3 & 9MFY22 HIGHLIGHTS In Rs. Crores Q3 9M 1,345 1,387 3,928 1,241 3,453 ▪ Continued growth momentum with strong quarterly revenues Revenue ▪ The Growth in revenue on account of strong order book reflected in new customer signings each quarter Q3FY21* Q2FY22 Q3FY22 9MFY21* 9MFY22 ▪ EBITDA margin dec
Slide 7: Robust Balance Sheet
ROBUST BALANCE SHEET Total Borrowings Net-Worth In Rs. Crores In Rs. Crores 462 263 1 207 57 (286) 188 216 176 40 117 78 Mar-20 Repayment Mar-21 Addition Dec-21 176 Mar-20 Profit for OCI Warrants Mar-21 Profit for OCI Dec-21 the year Subscription the year Money ▪ Additional debt drawn in Q3FY22 to f
Slide 8: Management Commentary
MANAGEMENT COMMENTARY Commenting on the results and performance Mr. Sanjeev Verma, Whole Time Director, Black Box said, “For 9MFY22 we have delivered ~14% revenue growth on the back of healthy order book and strong execution capabilities of the company. Over the last 9 months, we have won orders in
Slide 9: Deal Wins During the Quarter
DEAL WINS DURING THE QUARTER Transaction Value Clients $8.1 Mn Data Center and In-Building 5G/OnGo solutions for an American multinational technology conglomerate $2.3 Mn Connected Building & Unified Communication solutions for one of the largest, and most diverse correctional departments in the US
Slide 10: Q3 & 9MFY22 Consolidated P&L
Q3 & 9MFY22 – CONSOLIDATED P&L Particulars (Rs. Crs. ) Q3FY22 Q3FY21 Q2FY22 9MFY22 9MFY21 Restated Restated Revenue from Operations 1,387 1,241 1,345 3,928 3,453 Gross Profit 396 389 383 1,133 1,096 Gross Profit Margin 28.6% 31.4% 28.4% 28.9% 31.7% Gain on foreign currency transaction (net) (2) 2 (1
Slide 11: Medium Term Targets
MEDIUM TERM TARGETS TRANSFORM SUSTAIN & GROW 10
Slide 12: Medium-Term Targets
MEDIUM-TERM TARGETS Growth Drivers FY20 FY21 FY23 REVENUE ✓ Increasing market 4,994 4,674 7,000 to 7,500 (Rs. Crs) penetration + Addition of new clients Normalised ✓ Optimize operational EBITDA Margin 6.6% 7.5% 9.0% - 10.0% efficiencies (%) ✓ Optimizing operating costs PBT Margin -1.5% 2.1% 6.0% - 6
Slide 13: Business Overview
BUSINESS OVERVIEW TRANSFORM SUSTAIN & GROW 12
Slide 14: Snapshot
SNAPSHOT Who Are We Black Box® is a trusted IT solutions provider delivering cutting-edge technology solutions and world-class consulting services to businesses around Rs 4,674 Crores 8,000+ 100+ the globe FY21 Revenue Global Customers Fortune 500 Companies What We Do We deliver technology solutions
Slide 15: Our Journey from Local to Glocal
OUR JOURNEY FROM LOCAL TO GLOCAL 1986 1994 - 2004 2010 2011 2014-2018 2019 2020 2021 & Beyond Appointed AT&T’s SI In India Rechristened and AGC goes Global AGC amplifies Expanding Global Tuck-in acquisitions Strategy to Transform, Incepted as Reimagined Customer centricity Presence Sustain & Grow Ta
Slide 16: Our Board of Directors
OUR BOARD OF DIRECTORS Sanjeev Verma Sujay Sheth Neha Nagpal Whole time Director Chairman – Independent Independent Director Director Experience: 24 years Experience: 25 years Experience: 13 years Deepak Kumar Bansal Dilip Thakkar Anshuman Ruia Executive Director & Independent Director Executive Dir
Slide 17: Our Management Team
OUR MANAGEMENT TEAM Sanjeev Verma Deepak Kumar Bansal Rick Gannon President Executive Director & Head of GSI Business Global CFO Experience: 24 years Experience: 24 years Experience: 20 years Lisa Davidson Mahua Mukherjee Todd Oseth Head of HR North America Head of HR APAC, India & Senior VP, GM, Te
Slide 18: Improving Financial Flexibility
IMPROVING FINANCIAL FLEXIBILITY Promoter Funding Balance Sheet Strength Credit Rating • Promoters infusing equity • CRISIL has assigned BBB/Stable • Transformation at Black box has through warrants: Rs.225 Crores rating (Investment Grade) to the improved the financial strength at Rs.675 per Warrant
Slide 19: Inorganic Strategy
INORGANIC STRATEGY TRANSFORM SUSTAIN & GROW 18
Slide 20: Inorganic Growth Strategy
INORGANIC GROWTH STRATEGY Identify Businesses that provides expansion through scale and revenues currently operating with sub-optimal margin profile ✓ Capability expansion in areas like Cloud, Data center, Cyber Security, IOT ✓ Geographic expansion within US and Europe and APAC Complementary to exis
Slide 21: Acquisition History
ACQUISITION HISTORY Company Acquired Rationale Strategic Objectives fulfilled ▪ Expands offerings, scale, and Geographic reach to Service Global Black Box Corporation Enterprise Clients ▪ Increased combined revenues of the Company by over $600mn ▪ Increase and strengthen Company’s presence and offer
Slide 22: Black Box Strengthens Foothold in Cyber Security Capabilities
BLACK BOX STRENGTHENS FOOTHOLD IN CYBER SECURITY CAPABILITIES Black Box Technologies Australia Pty Limited, Indirect Wholly-Owned Subsidiary of Black Box (erstwhile AGC Networks Ltd.), has acquired 100% of shares of Dragonfly Technologies Pty Ltd. in February 2022 Overview Rationale Consideration Fi
Slide 23: Improved Service Offerings and Scale via Acquisition of Black Box
IMPROVED SERVICE OFFERINGS and SCALE VIA ACQUISITION OF BLACK BOX Focus on Global Solutions Integration (GSI) + Technology Product Solutions Focus on Global Solutions Integration Business (GSI) business (TPS) Unified Communications & Collaboration Connected Buildings Data Center & Edge IT 5G / Wirel
Slide 24: Black Box Transformation Since Acquisition
BLACK BOX TRANSFORMATION SINCE ACQUISITION Revenue# (in Mn $) & Gross Margins Adjusted# EBITDA (in Mn $) & EBITDA Margins 27.7% 27.6% 26.7% 28.1% 30.0% 29.9% 29.3% 30.1% 4.5% 5.4% 6.4% 7.0% 5.0% 7.1% 7.0% 6.1% Covid-19 impact Covid-19 impact $148 $146 $146 $157 $150 $10.4 $11.0 $144 $136 $9.3 $9.6 $
Slide 25: Think Global – Act Local
THINK GLOBAL – ACT LOCAL Our strategy is to be ‘GLOCAL’ by delivering solutions to a client locally wherever they are! Across 6 Regions and 30+ Countries… Ireland Employees India 709 Asia Pacific 191 MEA 113 Sales 652 Europe 306 Services & Delivery 2,215 Latin America 144 Support 628 North America 2
Slide 26: Organic Growth Opportunities
ORGANIC GROWTH OPPORTUNITIES Investment in talent acquisition Investment in refreshing the sales team, Cloud based Offerings hiring of partner managers and solution Launching of new cloud-based offerings architects for new offerings 05 01 Focus on Organic Growth Cross Selling Data Center Opportuniti
Slide 27: Our Endeavor
OUR ENDEAVOR Technology Consulting Global SI/IT ICT Solution Value Added Product Distributors Companies Services Integrators Resellers Companies Our endeavor is to be leading Technology Solution Integrator Gross Margin Gross Margin Gross Margin Gross Margin Gross Margin Gross Margin 50%+ 40-50% 30-4
Slide 28: Way Forward
WAY FORWARD Manage Organizational Improve Operational Risks and Compliance Efficiencies Adherence Increase Market Deliver Return on Penetration Technology Investments Optimize Operating Costs Accelerate Revenue Growth To become a Leading IT Solution Partner for Global Clients 27
Slide 29: Industry Overview
INDUSTRY OVERVIEW TRANSFORM SUSTAIN & GROW 28
Slide 30: Defined by Technology: Today and Tomorrow
DEFINED BY TECHNOLOGY Spending on communications services -Unified Communications technology reached $1.4 tr in 2020 The Global Manage Services market is expected to grow from USD 223.0 bn in 2020 to USD 329.1 bn by 2025 at a CAGR of 8.1% 3X Growth in Hybrid Cloud Adoption by enterprises APAC offers
Slide 31: Growth Drivers
GROWTH DRIVERS Based on various sources such as Gartner, GMM Insights etc below are the management estimates Industry Size (USD Bn) Drivers Unified Communications 8% 51 and Collaboration 30 ▪ Widespread global network of 4G connectivity ▪ Ongoing investments for early commercialization of 5G network
Slide 32: Business Overview
BUSINESS OVERVIEW TRANSFORM SUSTAIN & GROW 31
Slide 33: Product Solutions & Services Offerings
PRODUCT SOLUTIONS & SERVICES OFFERINGS Global Solutions Integration Business (GSI) Technology Product Solutions (TPS) Delivers digital transformation solutions that helps to design, Markets, sells, and distributes IT infrastructure products deploy, manage and strategize IT operations primarily throu
Slide 34: Key Pillars in GSI Portfolio
KEY PILLARS IN GSI PORTFOLIO Connected Buildings Digital Workplace Customer Experience Solutions Global Multisite Deployments Premise & Hybrid UC&C Contact Center Structured Cabling Managed UCaaS (Cloud) Self-Service/Automation Digital Transformation Implementation Premise to Cloud Upgrade Applicati
Slide 35: Digital Infrastructure
DIGITAL INFRASTRUCTURE Solution Overview Professional, managed and support services including strategy, Contact Center Infrastructure Upgrade for an assessment, capacity planning, consulting, design, performance analysis Indian Logistics Company and implementation for infrastructure deployments, mod
Slide 36: Unified Communications & Collaboration (UCC)
UNIFIED COMMUNICATIONS & COLLABORATION (UCC) Solution Overview Comprehensive solutions to transform, migrate, and integrate unified Seamless Migration for Voice Technology Service communication and collaboration platforms The Client: This healthcare provider, known worldwide for its excellence in Su
Slide 37: Mobility and 5G
MOBILITY and 5G Solution Overview Enterprise WiFi, distributed antenna systems (DAS) / small-cell design, deployment and management to enable connectivity in challenging Ubiquitous, 5G-Ready Wireless Coverage locations from high-rises to buildings with large footprints and below ground features The
Slide 38: Maintenance & Managed Services
MAINTENANCE & MANAGED SERVICES Solution Overview Value proposition covers the full lifecycle of IT services – from procurement of technology to configuration, design, implementation and management of complex Global 24/7/365 Managed Services environments Standardized set of offerings for on demand re
Slide 39: Technology Product Solutions
TECHNOLOGY PRODUCT SOLUTIONS TPS provides connectivity that enables businesses to better visualize and analyse information ✓ Strong brand awareness with 40+ years of history with sizable installed base ✓ We are a market leader in control room designs and deployments with reputation for being the bes
Slide 40: Technology Product Solutions Portfolio
TECHNOLOGY PRODUCT SOLUTIONS PORTFOLIO Signal Switching & Infrastructure & IoT & Networking Visualization Connectivity KVM IoT Cable IoT Gateways Copper (Bulk / Patch) High Performance Data Acquisition Units Custom (Copper / Fiber) Desktop IoT Sensors (wired/wireless) Fiber (Bulk / Patch) KVM Manage
Slide 41: Our Customers
OUR CUSTOMERS Bank of America. ‘intel) ja | Ss ie Hewlett Packard SuNTRUST Enterprise Cleveland Clinic a TATA "TATA CONSULTANCY SERVICES Cayex Genentech etisalat & Infosys “Dienep fh Trinity Health rece z <*> epF ENERGY Bloomberg -40—
Slide 42: Entrenched Customer Relationship
ENTRENCHED CUSTOMER RELATIONSHIP Stable Long Tenure of Relationship* 14% 21% 28% 30% 35% Tech Companies Hospitals Manufacturers Utility Co. 21.4 22.0 21.4 10.5 7.4 Broadcast Co. Retailers Hotels Banks FY14 FY17 FY20 FY21 9MFY22 Revenue Contribution *Top10 Clients – Weighted Average No. of Years 41
Slide 43: Our Partners
OUR PARTNERS <> ‘dels AVAYA UlNMcAfee Accu-lech | oe | NUTAND< Hewlett Packard i) TREND = JUNIPCL A symantec. SGENESYS ORACLE NICE’ verint D> poly “ihse. che: CaMitel commscepe riverbed KVM & Beyon ADDER ANIX(E? Io CITRIX | -2Q=
Slide 44: Well Diversified Global Business Model – 9MFY22
WELL DIVERSIFIED GLOBAL BUSINESS MODEL – 9MFY22 Revenue by Geography Revenue by Industry Financial Services, India, 6% Others, 19% 22% Europe, 12% MEA, 3% Retail, 7% APAC, 8% Business North America, 70% Technology, 13% Services, 12% Latin America, 1% Manufacturing, 5% Distributors, 9% Healthcare, 13
Slide 45: Organization Sized to Scale Growth
ORGANIZATION SIZED TO SCALE GROWTH Black Box Skills Across Talent Acquisition: Digital Workflow 4,639 Ratio-centric manpower including sales, delivery and services team – capable and technically competent to Connected Building 898 achieve growth Data Center 770 Dedicated talent acquisition team focu
Slide 46: Historical Financial Highlights
HISTORICAL FINANCIAL HIGHLIGHTS TRANSFORM SUSTAIN & GROW 45
Slide 47: Improving Financials Over Last 4 Years
IMPROVING FINANCIALS OVER LAST 4 YEARS Particulars (Rs. Crs. ) FY18 FY19 FY20* FY21 9M FY22 Revenue from Operations 733 1,853 4,994 4,674 3,928 Gross Profit 204 496 1,521 1,497 1,133 Gross Profit Margin 27.8% 26.8% 30.4% 32.0% 28.9% Total Other Expenses 170 450 1,192 1,145 952 EBITDA 33 47 328 352 1
Slide 48: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Sep-21 Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Sep-21 EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant And Equipment 23 156 164 164 177 Equity Share Capital 28 30 30 33 33 Right Of Use Asset -
Slide 49: Summary of Consolidated Cash Flows
SUMMARY OF CONSOLIDATED CASH FLOWS Particulars (Rs in Cr) FY20* FY21 H1 FY22 Operating profit before working capital changes 346 329 118 Changes in working capital 817 35 (140) Cash generated from operations 1,163 364 (22) Direct taxes paid (net of refund) (26) 49 28 Net Cash from Operating Activiti
Slide 50: Disclosure of Financial Restatement
DISCLOSURE OF FINANCIAL RESTATEMENT A ▪ During the financial year 2018-19, BBX, step-down subsidiary of Holding Company, had entered into a credit agreement with Pathlight Capital Fund LLP (the ‘lender’) to avail credit facility amounting to Rs. 692.57 Crores (USD 97.50 Million) for BBC. Further, as
Slide 51: Impact of Financial Restatement
IMPACT OF FINANCIAL RESTATEMENT Balance Sheet Statement 31-Mar-20 31-Mar-20 Particulars (in Rs. Crs) (Before Adjustments (Restated) Restatement) Profit & Loss Statement ASSETS Non-current assets Particulars (In Rs. Crs) FY21 FY20 Property, plant and equipment 62.75 101.62 164.37 PBT before restateme
Slide 52: Annexure – Links to Stock Exchange Intimations
Annexure – Links to Stock Exchange Intimations Particulars Links CRISIL Ratings Rationale Press Release Press Release 4 Press Release 3 Black Box Corporation Acquisition Press Release 2 Press Release 1 Fujisoft Technologies UAE Press Release Pyrios Pty Ltd (Australia) Press Release 2 Pyrios Pty Ltd
Slide 53: Contact Us
CONTACT US Company : Investor Relations Advisors : Strategic Growth Advisors Private Limited Black Box Limited CIN: U74140MH2010PTC204285 CIN: L32200MH1986PLC040652 Rahul Agarwal / Ami Parekh Deepak Bansal rahul.agarwal@sgapl.net / ami.parekh@sgapl.net deepak.bansal@agcnetworks.com +91 982143 8864 /