Slide 1: Exchange filing cover letter
To To BSE Limited The Manager Corporate Relationship Department Listing Department PJ towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra – Kurla Complex, Mumbai -400001 Bandra (EAST), Mumbai – 400051 BSE SCRIP CODE: 543896 NSE Symbol: AVALON Dear Sir/Madam, S
Slide 2: Earnings Presentation Q3 FY24
February 2024 Earnings Presentation Q3 FY24 www.avalontec.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Avalon Technologies Limited(the “Company”), solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person a
Slide 4: Table of Contents
Table of Contents Business Highlights Financial Highlights Strategy Company Overview Annexures | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 3
Slide 5: Avalon – At a Glance
AVALON – AT A GLANCE One of the India’s Leading Fully Integrated EMS Company with a Global Delivery Footprint Only India EMS player to have full-fledged manufacturing facilities in the US Hybrid One stop shop for all EMS 14* Manufacturing units across US Manufacturing 570k+*sq.ft. Design & Located
Slide 6: Business Highlights
Business Highlights Key events 49% INR 1,275 Cr # Box-build Revenue Orders Book Major wins in US and India across sectors such as Power, Industrial, Clean energy, Automotive and Rail. 16.4% INR 843 Cr * Avalon is now a strategic manufacturing partner for C-DAC, playing a pivotal role in advancing In
Slide 7: Financial Highlights – Q3 FY24
Financial Highlights – Q3 FY24 (INR Cr.) Order Gross Margin EBITDA PAT Book Q3 FY 24 Q3 FY 24 Q3 FY 24 31st Dec 2023 79 17 YOY% 6.6 1,275 YOY% Revenue YOY% 18.1 % YOY% 5.3 % 14.7% 7.1% 84 20 5.7 Q3 FY 24 Q3 FY 24 Q3 FY 24 Q3 FY 23 Q3 FY 24 1,190 7.7% Q3 FY 23 Q3 FY 23 214 YOY% 37% YOY% YOY% 3.0% YOY
Slide 8: Financial Highlights – 9M FY24
Financial Highlights – 9M FY24 (INR Cr.) Order Gross Margin EBITDA PAT Book 9MFY24 9MFY24 9MFY24 31st Dec 2023 234 45 YOY% 21 1,275 YOY% Revenue YOY% 33.6% YOY% 4.1 % 29.8% 7.1% 9MFY24 244 9MFY24 68 9MFY24 30 9MFY24 1,190 9MFY23 7.0% 9MFY23 9MFY23 650 YOY% 36.0% YOY% YOY% 3.2% YOY% 31st Dec 2022 3.4
Slide 9: Financial Highlights – Q3 FY24
Financial Highlights – Q3 FY24 (INR Cr.) Gross Revenue Margin % Q3 FY 24 214 Q3 FY 24 37% 7% 21 Q2 FY 24 201 8% Q2 FY 24 37% Bps 104 Bps Q3 FY 23 233 Q3 FY 23 36% EBITDA % PAT % Q3 FY 24 8% Q3 FY 24 3% 145 50 Bps 96 4% Bps 59 Q2 FY 24 6% Q2 FY 24 Bps Bps Q3 FY 23 9% Q3 FY 23 2% | www.avalontec.com 8
Slide 10: Income Statement
Income Statement (INR Cr.) Particulars Q3 FY24 Q3 FY23 YoY Change 9M FY24 9M FY23 YoY Change Revenue from Operations 214 233 -7.9% 650 673 -3.4% Cost of Goods Sold 135 149 -9.4% 416 429 -3.0% Gross Margin 79 84 -5.3% 234 244 -4.1% Gross Margin (%) 37.0% 36.0% 104 bps 36.0% 36.3% -25 bps Personnel Co
Slide 11: Financial Metrics - I
Financial Metrics - I (INR Cr.) 27.2% 24.6% 10.4 9.8 Asset Turn 9.4 RoCE (%) 21.3% 16.4% 8.3 FY 21 FY 22 FY 23* 9M FY24 FY 21 FY 22 FY 23 9M FY 24 306 295 294 Gross Debt Net Debt to 106 4.0 2.9 2.7 EBITDA -0.3 Mar’21 Mar’22 Mar’23 Dec’23 FY 21 FY 22 FY 23* 9M FY 24 *Calculated excluding IPO cash pro
Slide 12: Financial Metrics - II
Financial Metrics - II Receivables days Inventory days 124 106 96 89 80 77 71 68 Trade Mar’21 Mar’22 Mar’23 Dec’23 Mar’21 Mar’22 Mar’23 Dec’23 155 144 Trade Payables 122 Capital Days Net Working 62 105 43 41 37 days Mar’21 Mar’22 Mar’23 Dec’23 Mar’21 Mar’22 Mar’23 Dec’23 | www.avalontec.com 11
Slide 13: Global Customer Relationships
Global Customer Relationships Presence across Multiple Industries with a Diversified Customer Base Clean Energy Mobility / Transportation Industrials Communication Medical & Others Automotive Aerospace Power & Telecom & Digital Medical Defence & Solar Electric Hydrogen Railways Automation Satellite
Slide 14: Global Customer Relationships
Global Customer Relationships Revenue split based on Customer geography 9M FY 2024 INDIA – 47% US – 53% FY 2023 INDIA – 41% US – 59% | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 13 10
Slide 15: Industry Outlook
Industry Outlook Key Drivers Emerging sectors Rising share of EMS to drive growth manufacturing • Solar • EMS Industry CAGR1: 32.3% • Hydrogen • Industry In-house CAGR1: 21.4% • Electric Vehicles Industry Tailwinds Mfg. moving to Growing Indian US and India EMS market • “China+1” strategy • Increa
Slide 16: Industry Outlook
Industry Outlook Sizeable and Growing Global EMS Market Opportunity EMS market is poised for a robust growth across industries. India showcases unique competitive strengths India is leading the EMS growth story North America is the 2nd largest EMS market Global EMS Market India’s Market Share Chang
Slide 17: Our Growth Strategy
Our Growth Strategy Optimal Blend of Combination of Balance of Geography Today’s & Tomorrow’s Technology Profitability & Growth Customer Presence • Cater to world’s fastest growing EMS • Established businesses – • Focus on profitable growth 47% 53% markets – India & US India USA Collaborate, Grow wall
Slide 18: IPO Proceeds
IPO Proceeds (INR Cr.) Amount to be utilized as Utilized Amount as on 31st Unutilized Amount as on Objects of the Issue per RHP Dec 2023 31st Dec 2023 Debt repayment 145.0 145.0 0 Working Capital funding 90.0 90.0 0 General Corporate Purposes 64.4 64.6 0 (Less: IPO Expenses)* Total 299.4 299.6 0 * A
Slide 19: Avalon Group - Overview
Avalon Group - Overview
Slide 20: Avalon's varied product applications
Telecom, satellite Aircraft engine systems and digital parts infrastructure Avalon’s varied Medical devices product applications Products for defense across many end use application industries Clean energy with presence in solar, Signaling and braking hydrogen and systems for railways electric vehic
Slide 21: Our Journey So Far
Our Journey So Far Diversified Business and Strong Growth Avenues Phase 1 Phase 2 Phase 3 1999 2003 2005 2007 2009 2010 2011 2016 Today Commenced Inauguration of new Expansion of Acquired design Entry into Enhanced Fully Strategic entry production of facility in MEPZ- manufacturing capabilities Aer
Slide 22: Today
Today End-to-end Product Offering with Vertically Integrated Solutions – “One Stop Shop” Build PCB Sheet System Machining assembly metal integration Rapid prototyping 2 4 6 8 Box build Strong focus on Design & new product providing box build development solutions 49% of revenues in 9M FY24 1 3 5 7 9
Slide 23: Why Avalon
Why Avalon Our Key Differentiators Vertical Integration Global Mfg. & Delivery Clean Energy PCB Design and Analysis New Product Development PCB 53% 47% US1 India1 Assembly Cable Assembly & Wire Harnesses Magnetics 1 Sheet Metal Fremont Fabrication & , CA Chennai, Machining India 10 1 Injection Molde
Slide 24: Our Positioning
Our Positioning Avalon is Uniquely Positioned & Well Placed to Capture Growth in the EMS Industry Service offering Industry presence Diversified Design, Telecom Testing Box Clean Aerospace Vertical Aftermarket product portfolio Year and Build Energy Auto Railways & Defense Industrials (Commun Medica
Slide 25: Clean Energy
Clean Energy Avalon’s Presence in Clean Energy, a Sunrise Sector for the EMS Industry which is Poised for Robust Growth India plans to install 450GW of renewable energy capacity by 2030 Solar Rising adoption of Electric Vehicles Electric vehicles Government schemes and incentives to promote clean e
Slide 26: High Mix Products (1/2)
High Mix Products (1/2) Leaders in High Mix Flexible Volume Products across Multiple Industries High precision product offering across industries with long product development cycle & significant growth potential Long Product Lifecycle Leaders in High Mix / Flexible Mobility High Margins Volume Prod
Slide 27: High Mix Products (2/2)
High Mix Products (2/2) Examples of Presence in High Mix & Long Product Development Cycle Products Combustion liner Piston assembly for Anti-collision signaling system Aerospace fueling system Railways Industrials ▪ Assembled with 32 sheet metal child parts ▪ Intricate injection insert molding ▪ Con
Slide 28: Awards & Recognition
Awards & Recognition Numerous Awards Stand Testimony of Performance Collins Faiveley Indo – American Aerospace Transport Chamber of Commerce Best Supplier Supplier Award for Excellence Best export demonstrated Award for performance to sustained Strategic the US performance Partnership Runner-up of
Slide 29: Client Delivery Model (1/2)
Client Delivery Model (1/2) Flexibility in manufacturing and leveraging Hybrid Model Make in India Hybrid Make in US for India and Export for US Build Local Expand Global • Labour Intensive • Automation • Configuration | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 28 21
Slide 30: Client Delivery Model (2/2)
Client Delivery Model (2/2) Strong Focus on Up-selling and Cross-selling New Product Development PCB Analysis & Design Plastics Design for Manufacturing PCB Assembly Box Build Cables Assembly Prototyping Metals Magnetics | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 29 22
Slide 31: Global Manufacturing Footprint
Global Manufacturing Footprint Serve Customers Locally and Leverage Hybrid Model of Delivery Accredited with Global Quality Standards and Certifications Global manufacturing presence with state-of-the-art manufacturing facilities Atlanta, US Bengaluru, India 1 2 Chennai, India Fremont, US 10 1 Numb
Slide 32: Avalon's Manufacturing Facilities
Avalon’s Manufacturing Facilities Chennai, India Chennai, India Chennai, India Bengaluru, India Atlanta, US Bengaluru, India | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 31 47
Slide 33: Key Management Personnel
Key Management Personnel Strong Management Team with Proven Track Record of Performance and Sound Cross-functional Expertise Michael Robinson RM Subramanian Shamil Bicha Kesavan P Chief Operating Officer2 Chief Financial Officer Vice President, Business Vice President, Operations Development ▪ Respo
Slide 34: Experienced Board of Directors
Experienced Board of Directors Promoter-led Management Team and Highly Experienced Board Kunhamed Bicha Bhaskar Srinivasan Luquman Veedu Sareday Seshu Kumar Chairman & Managing Non-executive Director Ediyanam Non-Executive Director Director Non-executive Director ▪ Promoter of Avalon Technologies Lt
Slide 35: Annexures
Annexures
Slide 36: Shareholding Pattern
Shareholding Pattern (INR Cr.) Share Information (As on December 31, 2023) 6% FPI NSE Ticker AVALON Share Information BSE Ticker (As on June 30, 2023) 543896 51% Market Cap (INR Cr) 3,620 Promoters 26% % free-float 80.1% Public Free-float market cap (INR Cr) 2,899 Shares Outstanding 6,56,35,894 17% DI
Slide 37: Consolidated Profit and Loss
Consolidated Profit and Loss (INR Cr.) Particulars FY20 FY21 FY22 FY23 Revenues from operations 642 691 841 945 Other income 11.3 5.4 11 14 Total income 653 696 852 959 Cost of raw materials consumed 429 436 561 624 Changes in inventories of finished goods, work-in-progress -18 20 -7 -17 Employee be
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet (INR Cr.) Assets FY20 FY21 FY22 FY23 Equity and liabilities FY20 FY21 FY22 FY23 Tangible Assets 75 83 91 106 Shareholder's equity 3 28 89 537 Right-of-use / intangible assets 27 21 25 37 Borrowings 50 81 74 66 Financial assets 7 4 5 5 Lease and Other non-current liabilitie
Slide 39: Overview of Products and Capabilities
Overview of Products and Capabilities Injection Molded Plastics Plastics Gallery We serve our customers from the injection molding plastic business in various industries including aerospace, industrial and power | www.avalontec.com 38
Slide 40: Overview of Products and Capabilities
Overview of Products and Capabilities End-to-End Box Build System Integration Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 39 10
Slide 41: Overview of Products and Capabilities
Overview of Products and Capabilities Printed Circuit Board Assembly PCB Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 40 11
Slide 42: Overview of Products and Capabilities
Overview of Products and Capabilities Cable Assembly and Wire Harnesses Cables & Wire Harnesses | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 41 12
Slide 43: Overview of Products and Capabilities
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Aerospace Sheet Metal Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 42 13
Slide 44: Overview of Products and Capabilities
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Sheet Metal & Machining Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 43 14
Slide 45: Overview of Products and Capabilities
Overview of Products and Capabilities Magnetics Magnetics Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 44 15
Slide 46: Glossary
Glossary
Slide 47: Glossary
Glossary Term Description Term Description Avalon Avalon Technologies Ltd. IoT Internet of Things ATS Avalon Technologies and Services M.Com Masters in Commerce B.Com Bachelors in Commerce MA Masters in Arts B.Tech Bachelors in Technology MBA Masters in Business Administration B2B Business to Busine