Elgi Equipments Limited · NSE:ELGIEQUIP

Elgi Equipments — Investor Day (February 2024)

47 slides from Elgi Equipments's investor day presentation, Feb 23, 2024

Slide 1: Annual Investor Conference 2024
23rd February 2024 Annual Investor Conference 2024
Slide 2: 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 3: Global Presence
Global Presence 120+ Countries where ELGi does business 28 Countries with direct presence 3 Countries with manufacturing presence Copyright © ELGI EQUIPMENTS LIMITED 2024 | All Rights Reserved 3
Slide 4: Company Profile Quick Facts
Company Profile Quick Facts 400+ Distributors Worldwide 2000+ Employees Worldwide 2Mn+ Compressors 5Mn + Sq.ft. Future-Ready Manufacturing Facilities US$ 371Mn * Annual Revenue FY 23 *@INR82/US$ Copyright © ELGI EQUIPMENTS LIMITED 2024 | All Rights Reserved 4
Slide 5: ELGi Leadership - Business
ELGi Leadership Business Jairam Varadaraj Brian Pahl Bhavesh Karia Chris Ringlstetter Managing Director President - North America President - ISAAME President - Europe Marcelo Lorena Praveen Tiwari Ramesh Ponnuswami GM - Brazil MD - ATS ELGI Executive Director - OSEA Copyright © ELGI EQUIPMENTS LIMI
Slide 6: ELGi Leadership - Corporate
ELGi Leadership Corporate Anvar Jay Varadaraj Bheemsingh Melchisedec Jayakanthan R Executive Director Director - Operations Chief Financial Officer Nitesh Jain Premendra Venu Madhav Chief Human Resource Officer Chief Strategy Officer Director - Technology Copyright © ELGI EQUIPMENTS LIMITED 2024 | A
Slide 8: 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 efficie
Slide 11: Revenue (INR Mn)
Revenue (INR Mn) Across all Regions Act FY23 Est FY24 30407 32041 Revenue Growth Growth % 1634 5% ISAAME OSEA EUROPE North America ATS Growth % Growth % Growth % Growth % Growth % 10% 4% 13% -10% 15% Copyright © ELGI EQUIPMENTS LIMITED 2024 | All Rights Reserved 11
Slide 12: Sales Performance (INR Mn)
Sales Performance (INR Mn) 32,041 30,407 8% 8% 25,247 8% 19,241 18,294 47% 52% 44% Auto Equipment 45% 40% 48% Compressors ROW Compressors India FY 20 FY 21 FY 22 FY 23 FY 24 E Copyright © ELGI EQUIPMENTS LIMITED 2024 | All Rights Reserved 12
Slide 13: EBITDA (INR Mn)
EBITDA (INR Mn) FY 20 FY 21 FY 22 FY 23 FY 24 E 4373 4743 5% 6% 34% 23% 2674 7% 2048 21% Auto Equipment 76% 1267 73% Foreign Subsidiaries 92% India Standalone Europe Expansion -12% -4% -20% Copyright © ELGI EQUIPMENTS LIMITED 2024 | All Rights Reserved 13
Slide 14: Net Debt / Cash (INR Mn)
Net Debt / Cash (INR Mn) Mar 2023 – Dec 2023 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Major movements Cash Profit +3683 1,381 Working capital 598 -382 -926 -920 Dividend -634 -2,599 Tax -1197 Capex -476 *Unaudited Copyright © ELGI EQUIPMENTS LIMITED 2024 | All Rights Reserved 14
Slide 16: Air Compressor Market: Global vs ELGi (USD mn)
Air Compressor Market: Global vs ELGi (USD mn) Global Air Compressor market size ELGi operating revenue CAGR: 3% CAGR: 6% 14,700 19,100 209 371 FY13 FY23 FY13 FY23 During FY13-23, ELGi’s topline grew at 2X of Global Air Compressor market growth Source: Annual reports, Project Phoenix data, ELGi Inte
Slide 17: Top Global Players by Value: ELGi at #6 in FY23
Top 10 Global Players by Value: ELGi at #6 in FY23 Global Top 10 Players: Revenue (FY23, USD mn) Change CAGR 2) % FY13-FY23 % total FY13-23 1 Atlas Copco 6,032 31.6 % 1.6% Despite 2 Ingersoll Rand 3,294 17.3 % 0.8% extensive M&A (+4) 3 Hitachi-Sullair 1,054 5.5% 10.2 % activity, overall 4 Kaeser 1)
Slide 18: Strategic Business Plan (SBP) - Compressors
Strategic Business Plan (SBP) - Compressors SBP Goals Revenue - Compressors Revenue USD 450 Mn | 12% CAGR India RoW* 6% 18% 450 334 356 India vs RoW Profitability 291 223 44/56 16% 3/4 of the growth from RoW Return on Capital Employed (ROCE) FY21 Act FY22 Act FY23 Act FY24 Est FY26 SBP * RoW - Rest
Slide 20: Vacuum Products - Global and Indian Market
Vacuum Products - Global and Indian Market GLOBAL MARKET 6 technologies constitute 65% of the Indian vacuum pump market • Global market for vacuum pumps was $6-7 Bn in 2023 100% • Market is expected to grow at a 23% Rotary Vane CAGR of 6% (2023-28) 44% 5% Dry Vane 14% Roots Booster INDIAN MARKET 27%
Slide 21: Technology Partnership on Vacuum Products
Technology Partnership on Vacuum Products  ELGi adds vacuum products to its portfolio by entering into a technical licensing agreement with DVP Vacuum Technology, SPA (Italy) - a family-owned company that is in the vacuum business since 1973 and are renowned for performance and quality.  DVP provi
Slide 22: Private Loco Segment - Breakthrough Order
Private Loco Segment - Breakthrough Order SIEMENS – 9000HP LOCOMOTIVE PROJECT Scope  Air Generation & Treatment Unit  ELGi Screw block  Indigenized Rail Motor  Indigenized Rail Air dryer  Complying International Quality standards  Auxiliary Compressor  2400 AGTU supply in 12 years  Maintenan
Slide 24: EPSAC - Oil Lubricated Product Portfolio
New Products EPSAC - Oil Lubricated Product Portfolio NEURON-IV AiR~ALERT EG 90 - 110 Super Premium EQ Series 30 - 45 kW  2-Stage Air Ends driven by super-premium, IE4 motors  Products for MSME segment  Improved, class-leading energy efficiency  Compact and Modular  Specific power consumption s
Slide 25: EPSAC - Oil Lubricated Product Portfolio
New Products EPSAC - Oil Lubricated Product Portfolio NEURON-IV AiR~ALERT EG 11 - 45PM LD Piston Compressors- Features  Permanent Magnet Synchronous Motor (PMSM)  Base-mounted and vertical tank-mounted options  Reliable, Energy-efficient motor up to IE7 class  Vertical tanks- 40% lesser footprin
Slide 26: Oil Free/Water Injected Product Portfolio
Product upgrade Oil Free/Water Injected Product Portfolio OF 90 - 160 kW Air Cooled Heat Recovery System AB 55 / AB 75 kW OF 90 - 160 kW Water Cooled  Enhanced SPC and flow  Recover heat from compressor up to 95%  Footprint reduction by 21%  Improved productivity  Warm water availability at 85°
Slide 27: Portables Product Portfolio
New Products Portables Product Portfolio PG 132E – 15 bar PG 550 – 215  Reliable, Energy efficient IE3 – 4pole motor  Better fuel efficiency  Best-in-class compact footprint  Three stage air filtration system  Weld-free air intake system  Operates even at high ambient temperature  Inbuilt mot
Slide 28: Railways – for EMU / MEMU & Metros
New Products Railways – for EMU / MEMU & Metros RR10100 - Oil Lub. Electric Wiper Assembly Designed for Longer  Multi speed system Maintenance intervals  Precise speed and  Direct drive defined visibility  Compact and light  Smooth operation weight  Enhanced life  Less vibration and noise  5
Slide 30: Digital Transformation Update
Digital Transformation Update Blender, Verge 3D, Python, R, MIT App Inventor, Power Technology BI, Power Apps, Power Automate, Visual Studio, Selenium, • 10+ Robotic Process Automation Stack SharePoint, Gitea (Version Control), IaC (Dockers & Containers) (RPA) Projects 10K+ Reports Automated + • 12+
Slide 31: Integration of Talent (IoT) Update
Integration of Talent (IoT) Update The phased approach is to shape and embed a strong process of future-focused talent decision making Phase ALIGN DESIGN EXECUTE Develop robust understanding of Design the integrated talent Implement the integrated Objective ELGi talent essentials through management
Slide 32: Integration of Talent (IoT) Update
Integration of Talent (IoT) Update Business Outcomes People Outcomes Established leadership competency model aligned Training of employees on ELGi Leadership Competency model with CK2 for future-focused vision and employee growth Training of hiring & HR managers in Behavioral Event Interviewing Deve
Slide 33: All-Women Production Lines at the ELGi Air Center
All-Women Production Lines at the ELGi Air Center Reiterates commitment to building a gender-diverse, inclusive workforce via women empowerment and skill development. Introduced assembly lines with a 100% female workforce at the ELGi Air Center in Coimbatore, Tamil Nadu, India. Twenty young women gr
Slide 34: EVTS: B. Voc Program with Central University of Tamil Nadu
EVTS: B. Voc Program in collaboration with Central University of Tamil Nadu Reiterates commitment to nurturing youth and creating a pipeline of skilled talent. The Elgi Vocational Training School (EVTS) partnered with the Community College, Central University of Tamil Nādu, to introduce a three-year
Slide 36: ELGi Harnesses Compressed Air Excellence to Fly the Flag high
ELGi Harnesses Compressed Air Excellence to Fly the Flag high Technology innovation and a spirit of resilience converge to ensure the Indian national flag flies majestically even in low-wind conditions. "Project Tiranga” - technology solution capable of delivering air at adequate volume and pressure
Slide 37: Technology Day
Technology Day Celebrated Commitment to Innovative, Energy-Efficient Compressed Air Solutions ELGi Technology Day The 6th edition of Technology Day 2023 displayed ELGi’s commitment to advancing futuristic technology while continuously creating energy-efficient compressed air solutions to minimize em
Slide 38: ELGi Sauer: State-of-the-art manufacturing facility, India
ELGi Sauer: State-of-the-art manufacturing facility, India ELGI Sauer Compressors Ltd, expanded operations by opening a new manufacturing facility in Coimbatore, Tamil Nadu. Investment: approximately INR 400 million The 50,000 sq. ft. facility manufactures high-pressure compressors, pressure-reducin
Slide 40: Community Wellness: #whatsyourfinishline challenge
Community Wellness: #whatsyourfinishline challenge The 5th edition of the #WhatsYourFinishLine global fitness challenge saw 154 teams with participants from 26 countries collectively log 225 million steps via running, walking, and jogging. The 21-day-long fitness challenge ended on November 5, 2023,
Slide 41: Community Wellness: Coimbatore Marathon 2023
Community Wellness: Coimbatore Marathon 2023 ELGi and the Coimbatore Marathon celebrate 11 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 42: Steps for Change – One Planet. Our Earth
Steps for Change – “One Planet.Our Earth” Over 800 children participated, contributing to an astonishing array of young, artistic talent and keen environmental consciousness. ELGi orchestrated a global art-with-a-purpose competition themed “One Planet. Our Earth" for our employees' children and the
Slide 44: Feedback Received in 2023
Feedback Received in 2023 S.No. Feedback ELGi’s Response Some writeups like small brochure, highlighting the flow Manufacturing process is confidential and unique to 1 chart or manufacturing value chains would be more the Company. It may be difficult to share it with helpful everyone. Could have add
Slide 45: Feedback Received in 2023
Feedback Received in 2023 S.No. Feedback ELGi’s Response Foundry meets Captive requirements. Capacity has been built considering business goals of the future. The Has the profit margin been affected due to sub scale 4 foundry’s capacity utilization will improve operations in Foundry? commensurate wi
Slide 46: Feedback Received in 2023
Feedback Received in 2023 S.No. Feedback ELGi’s Response If you can provide Regional breakup of sales and margins Granular sales and margins are competitive 7 in table form instead of graph information. Wonderful factory visit, very motivated and enthusiastic 8 Thank you. staff and good interaction

Elgi Equipments — Investor Day (February 2024) on 6ix

Elgi Equipments — Investor Day (February 2024)

Slide 1: Annual Investor Conference 2024

Slide 2: Disclaimer

Slide 3: Global Presence

Slide 4: Company Profile Quick Facts

Slide 5: ELGi Leadership - Business

Slide 6: ELGi Leadership - Corporate

Slide 7: Global Manufacturing Footprint

Slide 8: Global Manufacturing Footprint

Slide 9: Factory Tour

Slide 10: Business Performance

Slide 11: Revenue (INR Mn)

Slide 12: Sales Performance (INR Mn)

Slide 13: EBITDA (INR Mn)

Slide 14: Net Debt / Cash (INR Mn)

Slide 15: Strategic Business Plan

Slide 16: Air Compressor Market: Global vs ELGi (USD mn)

Slide 17: Top Global Players by Value: ELGi at #6 in FY23

Slide 18: Strategic Business Plan (SBP) - Compressors

Slide 19: Emerging Business Opportunities

Slide 20: Vacuum Products - Global and Indian Market

Slide 21: Technology Partnership on Vacuum Products

Slide 22: Private Loco Segment - Breakthrough Order

Slide 23: New Products/ Upgrades

Slide 24: EPSAC - Oil Lubricated Product Portfolio

Slide 25: EPSAC - Oil Lubricated Product Portfolio

Slide 26: Oil Free/Water Injected Product Portfolio

Slide 27: Portables Product Portfolio

Slide 28: Railways – for EMU / MEMU & Metros

Slide 29: Key Initiatives

Slide 30: Digital Transformation Update

Slide 31: Integration of Talent (IoT) Update

Slide 32: Integration of Talent (IoT) Update

Slide 33: All-Women Production Lines at the ELGi Air Center

Slide 34: EVTS: B. Voc Program with Central University of Tamil Nadu

Slide 35: Key Events

Slide 36: ELGi Harnesses Compressed Air Excellence to Fly the Flag high

Slide 37: Technology Day

Slide 38: ELGi Sauer: State-of-the-art manufacturing facility, India

Slide 39: Global Employee Engagement and Community Initiatives

Slide 40: Community Wellness: #whatsyourfinishline challenge

Slide 41: Community Wellness: Coimbatore Marathon 2023

Slide 42: Steps for Change – One Planet. Our Earth

Slide 43: Investors Feedback and Company's Response

Slide 44: Feedback Received in 2023

Slide 45: Feedback Received in 2023

Slide 46: Feedback Received in 2023

Slide 47: Thank you