Avalon Technologies Limited · NSE:AVALON

Avalon Technologies — Q4 FY23 Earnings Presentation

49 slides from Avalon Technologies's earnings presentation, May 2023

  1. Slide 1: Earnings Presentation Q4 & FY23

    janufacturing your success manufacturing y 9 Av May 2023 Earnings Presentation 04 & FY23 www.avalontec.com

  2. Slide 2: 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

  3. Slide 3: STRICTLY PRIVATE AND CONFIDENTIAL

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  5. Slide 5: Avalon – At a Glance

    AVALON – AT A GLANCE FY23 metrics 27.8% 11.9% 5.5% Return on Capital EBITDA Margin PAT Margin Employed STRICTLY PRIVATE AND CONFIDENTIAL 5

  6. Slide 6: Business Highlights

    Business Highlights On the Aerospace segment, won new businesses from world’s largest aerospace conglomerate including factory transfer projects On the Clean energy segment, progress made through the signing of Letter of Intent & Contracts with emerging industry pioneers, supporting them in deliveri

  7. Slide 7: (INR Cr.) 265 bps 388 bps

    (INR Cr.) Q4 FY 23 Q4 FY 23 Q4 FY 23 31st March 2023 102 41 23 1,231 39.4 % 74.2% 113.1% 43.4% Q4 FY 23 73 Q4 FY 23 24 Q4 FY 23 11 Q4 FY 23 858 Q4 FY 22 31st March 2022 15.1% Q4 FY 22 Q4 FY 22 272 37.5% 8.2% 29.6% 265 bps 388 bps 324 bps 210 34.8% 11.2% 5.0% Q4 FY 22 Q4 FY 22 Q4 FY 22 Q4 FY 22 7

  8. Slide 8: (INR Cr.) 169 bps 34 bps

    (INR Cr.) FY 23 FY 23 FY 23 338 113 53 17.9% 15.6% 10.6%* FY 23 287 FY 23 98 FY 23 47* FY 23 FY 22 945 FY 22 35.8% 11.9% FY 22 5.5% 12.4% 169 bps 34 bps (10) bps 841 34.1% 11.6% 5.6%* FY 22 FY 22 FY 22 FY 22 *Calculated excluding the exceptional item of INR 19.99 Cr received in FY22 pertaining to Pa

  9. Slide 9: Financial Highlights - Q4 FY23

    Financial Highlights - Q4 FY23 (INR Cr.) Gross Revenue Margin Q4 FY 23 272 Q4 FY 23 102 17% 26% Growth Growth Q3 FY 23 233 30% Q3 FY 23 81 39% Growth Growth Q4 FY 22 210 Q4 FY 22 73 EBITDA PAT Q4 FY 23 41 Q4 FY 23 23 103% 296% Growth Growth 20 74% 113% Q3 FY 23 Growth Q3 FY 23 6 Growth Q4 FY 22 24 Q

  10. Slide 10: Financial Metrics - I

    Financial Metrics - I (INR Cr.) 27.8% 27.2% 26.8% 21.3% 10.4 Asset Turn 9.4 RoCE (%) 8.9 8.3 FY 20 FY 21 FY 22 FY 23* FY 20 FY 21 FY 22 FY 23 306 295 294 Gross Debt Net Debt to 248 3.4 4.0 2.9 EBITDA 2.7 Mar’20 Mar’21 Mar’22 Mar’23 FY 20 FY 21 FY 22 FY 23* *Calculated excluding IPO cash proceeds 10

  11. Slide 11: Financial Metrics - II

    Financial Metrics - II Receivables days Inventory days 123 96 101 80 88 77 77 65 Trade Mar’20 Mar’21 Mar’22 Mar’23 Mar’20 Mar’21 Mar’22 Mar’23 148 127 Trade Payables 77 106 Capital Days Net Working 67 76 51 55 days Mar’20 Mar’21 Mar’22 Mar’23 Mar’20 Mar’21 Mar’22 Mar’23 11

  12. Slide 12: Global Customer Relationships

    Global Customer Relationships Presence across Multiple Industries with a Diversified Customer Base Clean Energy Mobility / Transportation a Medical & Others Oa yN ») & @®& : i # & ww & oe ital 2. & i Rails noone a ‘91 Medical & fear Hydrogen aitways crospace Automation Satellite Infrastructure Other

  13. Slide 13: INDIA – 41% US – 59% INDIA – 38%

    INDIA – 41% US – 59% INDIA – 38% US – 62% STRICTLY PRIVATE AND CONFIDENTIAL 13

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    (US$bn) STRICTLY PRIVATE AND CONFIDENTIAL 15

  16. Slide 16: Optimal

    Optimal Geography Today’s & Tomorrow’s Industries Profitability & Growth STRICTLY PRIVATE AND CONFIDENTIAL 16

  17. Slide 17: Income Statement

    Income Statement (INR Cr.) Particulars Q4 FY23 Q4 FY22 YoY Change FY 2023 FY 2022 YoY Change Revenue from Operations 272 210 29.6% 945 841 12.4% Cost of Goods Sold 170 132 28.8% 607 554 9.5% Gross Margin 102 73 39.4% 338 287 17.9% Gross Margin (%) 37.5% 34.8% 271 bps 35.8% 34.1% 169 bps Personnel Co

  18. Slide 18: Balance Sheet

    Balance Sheet (INR Cr.) Assets FY23 FY22 Equity and liab FY23 FY22 Property, plant and equipment 1 89 Shareholder's equity 537 89 Capital work in progress 15 2 Borrowings 66 74 Right-of-use / intangible assets 37 25 Lease liabilities 29 v7 Financial assets 5 5 Other financial liabilities 1 2 Other n

  19. Slide 19: Cashflow Statement

    Cashflow Statement (INR Cr.) Particulars Mar'23 Mar'22 Operating profit before working capital changes 73 86 Changes in working capital (112) (81) Cash generated from operations 6 28 Direct taxes paid (net of refund) (19) (13) Net Cash from Operating Activities (A) (13) 16 Net Cash from Investing Ac

  20. Slide 20: IPO Proceeds

    IPO Proceeds (INR Cr.) *Unaudited 20

  21. Slide 21: Avalon Group - Overview

    Avalon Group - Overview

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    No. of manufacturing facilities STRICTLY PRIVATE AND CONFIDENTIAL 25

  26. Slide 26: P P P

    Vertical Aftermarket Global mfg. Company focus Integration services P P P P P P P P P o P P P B2B Dixon Technologies India Ltd. P P o o o o o o P P o o P B2C Amber Enterprises India Ltd P P o P P o o o o P o o P B2B B2C Elin Electronics Ltd P P o P o o o o P P o o o B2C Syrma SGS Technology Ltd P o

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  28. Slide 28: Long Product Lifecycle

    Long Product Lifecycle Clean energy Industrial Communication Medical Others Consumer electronics Lighting and appliances Mobile phones High Mix High Volume STRICTLY PRIVATE AND CONFIDENTIAL 28

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  37. Slide 37: Jres

    Jres

  38. Slide 38: Share Information

    (INR Cr.) Share Information (As on April 28, 2023) 15% FPI/FII NSE Ticker AVALON BSE Ticker 543896 51% Market Cap (INR Cr) 2,443 Promoters 19% % free-float 49% Public Free-float market cap (INR Cr) 1,192 Shares Outstanding 6,52,92,577 15% DII Electronic Manufacturing Industry Services 38

  39. Slide 39: Historical Income Statement FY20-FY23

    (INR Cr.) Particulars FY20 FY21 FY22 FY23 Revenues from operations Other income Total income Cost of raw materials consumed Changes in inventories of finished goods, work-in-progress Employee benefits expense Finance costs Depreciation and amortisation expenses Other expenses Profit before tax1 Exce

  40. Slide 40: Historical Balance Sheet FY20-FY23

    (INR Cr.) Assets FY20 FY21 FY22 FY23 Equity and liabilities FY20 FY21 FY22 FY23 Tangible Assets 75 83 91 91 Shareholder's equity 3 28 89 537 Right-of-use / intangible assets 27 21 25 25 Borrowings – Long term 50 81 74 66 Financial assets 7 4 5 5 Lease and Other non-current liabilities 30 24 27 42 Ot

  41. Slide 41: We serve our customers from the injection molding plastic business

    We serve our customers from the injection molding plastic business in various industries including aerospace, industrial and power 41

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  48. Slide 48: Glossary

  49. Slide 49: Glossary

    ii-= Glossary Term Descri Avalon Avalon Technologies Ltd. ATS Avalon Technologies and Services B.Com Bachelors in Commerce B.Tech Bachelors in Technology B2B Business to Business B2C Business to Customer BA Bachelors in Arts BGA Ball Grid Array BITS Birla Institute of Technology CA California CAD Co

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