Slide 1: Result Update Presentation Q1 FY20
122,65 Salzer Electronics Limited Result Update Presentation Q1 FY20
Slide 2: Disclaimer
Disclaimer SSlizer) This presentation has been prepared by Salzer Electronics Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connectio
Slide 3: Table of Contents
Table of Contents Financial Highlights Company Overview Business Overview Way Ahead 3
Slide 4: Financial Highlights
Financial Highlights
Slide 5: Joint Managing Director's Message
Joint Managing Director’s Message Commenting on the results, Mr. Rajesh Doraiswamy, Joint Managing Director, said : “I am happy to share that this quarter once again, we have demonstrated good growth in our revenues inspite of the sluggish industrial market in India. This growth was mainly driven by
Slide 6: Key Developments
Key Developments ▪ Acquired 72.32% stake in Kaycee Industries Limited, a pioneer in Industrial Switches for more than 75 years ▪ Kaycee Industries – among leading providers of electrical and electronic components in India with manufacturing facility located at Ambernath, Thane – offers products like
Slide 7: Key Financial Highlights – Q1 FY20 (YoY)
oE gm eeeererees Key Financial Highlights – Q1 FY20 (YoY) ——|> a — wo ot ee ee ee ee ee ee ee ee eee ee een, 7 “ a a see ee ee ee ee 28% Revenue Rs. 162.1 crore 19% T EBITDA Rs. 16.7 crore 27% PAT Rs. 5.8 crore sy Re ee ▪ Revenue mainly driven by increase in business of Industrial Switch Gear and Wi
Slide 8: Q1 FY20 Financial Highlights
Q1 FY20 Financial Highlights* Salzer Rs. in Crore Q1 FY20 Q1 FY19 Y-o-Y % Q4 FY19 Total Income from Operations 162.1 126.5 155.0 Excise Duty 0.0 0.0 0.0 Net Revenue 162.1 126.5 28.2% 155.0 Raw Materials 126.5 96.1 117.6 Employee Cost 6.3 5.2 4.7 Other Expenses 12.6 11.2 15.9 Total Expenditure 145.5
Slide 9: Q1 FY20 Revenue Breakup – Business Verticals
Q1 FY20 Revenue Breakup – Business Verticals* ——|> a — Q1 FY19 Q1 FY20 Industrial Industrial Switchgear, Switchgear, 37.1% 37.2% Energy Wire & Cable, Energy Management , 55.0% Management , Wire & Cable, 0.0% 1.8% 54.7% Building Segment, Building Segment, 6.4% 7.7% sae SS SSS SSS eee x ▪ Industrial S
Slide 10: Q1 FY20 Revenue Breakup – Geographical
\ Nl L ll ll Q1 FY20 Revenue Breakup – Geographical* | o- Q1 FY19 Q1 FY20 Middle East, Asia (Exclu. India), Asia (Exclu. India), Middle East, 3.8% 1.6% U.S, 1.1% 2.6% 5.8% U.S, 3.3% Europe, 4.0% Europe, 4.1% India, India, 85.1% 88.6% * Numbers as per Ind AS guidelines 10
Slide 11: Key Financial Highlights – FY19 (YoY)
oE gm eeeererees Key Financial Highlights – FY19 (YoY) ——|> a — wo ot ee ee ee ee ee ee ee ee eee ee een, 7 “ a a see ee ee ee ee 26% Revenue Rs. 559.8 crore 19% T EBITDA Rs. 63.6 crore 20% PAT Rs. 24.0 crore sy Re ee ▪ Revenue and EBITDA growth mainly driven by all three key businesses of Industria
Slide 12: Key Financial Highlights – FY19
Key Financial Highlights – FY19 Salazar Revenue (Rs. Crore) EBITDA (Rs. Crore) / Margins (%) 559.8 70 13% 11.9% 12.0% 60 442.8 11.5% 11.4% 12% 385.0 50 361.1 40 11% 30 63.6 53.3 10% 20 42.9 44.1 9% 10 0 8% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Net Profit (Rs. Crore) Networth as on 31st March (Rs.
Slide 13: FY19 Financial Highlights
FY19 Financial Highlights* Salzer) Rs. in Crore FY19 FY18 Y-o-Y % ‘, ae Ee ee ee eee ee eee eee ee ee ee ee ee ee ee ee oe el ee ee a eel Total Income from Operations 559.8 453.3 ▪ Revenue and EBITDA Excise Duty 0.0 10.6 growth mainly driven Net Revenue 559.8 442.8 26.4% by all three key businesses
Slide 14: FY19 Revenue Breakup – Business Verticals
FY19 Revenue Breakup – Business Verticals* ——|> a — FY18 FY19 Industrial Industrial Switchgear, Switchgear, 45.0% 41.4% Energy Energy Management , Management , Wire & Cable, 1.1% Wire & Cable, 2.6% 48.5% Building Segment, 49.2% 4.7% Building Segment, 7.6% sma eee SSS SS SS eee x \ ▪ Industrial Switc
Slide 15: FY19 Revenue Breakup – Geographical
FY19 Revenue Breakup – Geographical* ——|> a — FY18 FY19 Middle Asia (Exclu. Middle Asia (Exclu. India), East, 1.5% India), 5.5% East, 2.3% 6.5% U.S, 2.2% U.S, 4.0% Europe, Europe, 4.0% 5.3% India, 82.8% India, 86.1% * Numbers as per Ind AS guidelines 15
Slide 16: Balance Sheet as on 31st Mar'19
Balance Sheet as on 31st Mar’19 As on 31st As on 31st As on 31st As on 31st Rs. Crore Rs. Crore Mar’ 19 Mar’ 18 Mar’ 19 Mar’ 18 Shareholder’s Funds 287.2 270.6 Non-current assets 215.9 209.3 Share capital 16.0 15.0 Property, Plant & Equipment 178.4 161.7 5% Convertible Preference Shares 0.0 0.5 Capi
Slide 17: Company Overview
1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 4 \ eee eee Salzer Electronics Company Limited Overview Investor Presentation FY17
Slide 18: Company Overview
Company Overview Leading player offering total and customized electrical solutions ▪ Presence in Industrial Switchgears, Wires & Cables and Energy management business ▪ Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share Extensive Product portfolio across verticals wi
Slide 19: From a Single Product Company…
From a Single Product Company… SSlizer) ▪ Unit I (Coimbatore) – manufacture ▪ Leading player offering total and contactors, relays, panels, energy customized electrical solutions savers ▪ More than 15 different products ▪ Starting of long term association with ▪ 2,000 employees L&T ▪ 4 manufacturing
Slide 20: Professional Management
N l L l I Professional Management R.Doraiswamy ▪ Qualified Electrical Engineer and Technocrat Entrepreneur with over 2 decades of experience oN Managing Director ▪ Vast Experience in Foreign Collaboration & wide global contacts D.Rajeshkumar ▪ Electrical Engineer, India; Post Graduate in Business Ma
Slide 21: Business Overview
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Slide 22: Business Overview
Business Overview Salzer) Industrial Switch Gear Products Copper Products ▪ Transformers ▪ Wires & Cables ▪ Terminal Blocks ▪ Flexible Bus Bars ▪ Rotary Switches ▪ Enamelled Wires ▪ Isolators ▪ Bunched Conductors ▪ General Purpose relays ▪ Tinned Copper Wires ▪ Wiring Ducts ▪ MPCB’s ▪ Contactors & O
Slide 23: Wide Product Suite – Industrial Switch gears
Wide Product Suite – Industrial Switch gears ——|> a — Products Features ▪ More than 75 sizes Cable Ducts/ Wire Ducts ▪ India’s largest RoHS and Halogen Free Ducts UL and CSA Listed ▪ 6A to 400 Amps Rotary Switches ▪ > 2500 ranges ▪ UL & CB Tested ▪ 16 to 250 Amps ▪ UL 50 rated Enclosed mounting Isol
Slide 24: Wide Product Suite – Industrial Switch gears
Wide Product Suite – Industrial Switch gears Products Features ▪ 16 to 250 Amps ▪ UL 50 rated Enclosed mounting Contractors & Overload Relays ▪ Changeover Switches ▪ DC – PV Isolators ▪ CB Tested Two Frames Motor Protection Circuit ▪ 0.1 amps to 63 Amps Breaker(MPCB) ▪ Type F Co-ordinated ▪ UL Liste
Slide 25: Wide Product Suite – Building Products
Wide Product Suite – Building Products Products Features Automatic Source Changeover ▪ Unique - patented design - Contactor based ACCL with Current Limiter ▪ Heavy Duty - AC 32A and AC22A utilization category ▪ Easy to Install Distribution Board ▪ User Friendly ▪ Durable ▪ High Performance – 10KA Mi
Slide 26: Wide Product Suite – Copper Products
Wide Product Suite – Copper Products Products Features From 0.5- 240 Sq mm PVC Insulated Copper wires & ▪ Single & Multi Core Cables ▪ FR, FRLS, Halogen Free ▪ UL Listed Upto 1000 Amps Flexible Busbars ▪ Only Manufacturer in India ▪ UL Listed ▪ Power Cable Harness Wire Harness ▪ Control cable harnes
Slide 27: Wide Product Suite – Energy Mgmt. Services
Wide Product Suite – Energy Mgmt. Services ——|> a — ~ ▪ Increases lamp-life by average of 20% for HPSV lamps ▪ 30% reduction in energy consumption under normal Energy Saver working conditions ▪ Reduces power consumption by optimizing voltage & Panels ▪ State of art GSM/ GPRS technology is used for m
Slide 28: Wide Product Suite – Customized for OEM's
Wide Product Suite- Customized for OEM’s 4 i Jobjicem ig6Alem CT’s Terminal Socket Coils / Inductors Panels In-house manufacturing and R&D enables superior customization of products 28
Slide 29: Key Strengths
Key Strengths Salzer Wide Distribution Network Strong Customer Relationships ▪ Wide distribution network – international and domestic ▪ Strong customer relationships across globe ▪ Tie up with L&T – access to over 350 dealers Complete Backward Integration ▪ Preferred supplier to GE, Schneider and in
Slide 30: Four Manufacturing facilities...
Four Manufacturing facilities... UNIT I UNIT 2 UNIT 3 UNIT 4 ▪ Rotary Switch ▪ Toroidal Transformers ▪ Wiring Accessories ▪ Wires & Cables ▪ Contactors & Relays ▪ Isolators (Dis-connectors) ▪ Flexible Bus Bars ▪ Panel Assembly ▪ Terminals ▪ Bunched Conductors ▪ Lighting Energy Savers ▪ Wiring Ducts
Slide 31: ...With In-house process capabilities
...With In-house process capabilities... ▪ Full fledged Type testing laboratory ▪ In-house tool room facility for manufacturing and – Loads up to 500Amps servicing of Moulds and press tools – Environmental test chamber for humidity test – CNC Wire Cut Machines and Spark erosion machines – Salt spray
Slide 32: ...And a strong R&D team
...And a strong R&D team Salzer) R&D expenses (Rs crore) ▪ In-house R&D Center − More than 35 engineers 8.4 8.5 − Recognized by Department of Science, Govt of India 7.8 ▪ Patented Rotary switches ▪ Five patents in process − Manual Single Phase Starter with no voltage tripping, Energy 4.3 Saver Syste
Slide 33: Internationally certified
Internationally certified e s % ) S % 2 3 0 9oY Ney Yonenp \ntermatig ( 9001 ISO 9001 ISO 14001 ISO 18001 CN (\ CB certification by IE CE Certification UL Certification CB certification ROHS BRGEN, —. $ = ® z <> Se ~—~ ge $ 5 Ss m GS => COMPLIANT Cc US Intertek iso 16949 RoHS Intertek Semko approval
Slide 34: Blue Chip Customers
Blue Chip Customers Salzer) Valeo Schnidsr @B G,) LARSEN & TOUBRO LMW.. sm.ths It’s all about Imagineering wsrcopP=- detection SOOO ENE bringing technologytolife » Ea Pent AL a> a> ALSTOM Tiitaael OTIS am GUARD s (aA PLD wD eumati A\neuta SIEMENS ee Tafa Tray Bra sites shear ferries cScontrols YOKOG
Slide 35: Wide Distribution Network
Wide Distribution Network International Domestic ▪ Direct network across 50 countries Direct network ▪ Tie up with L&T – access to more than 350 ▪ 23% of sales from global distribution across 50 dealers in India ▪ 40 international distributors countries ▪ Direct network for Modular Switches – 50 ▪ P
Slide 36: Way Ahead
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Slide 37: Way Ahead
Way Ahead Operational Excellence ▪ Consistently executing business strategy and continued focus on improving operating costs by sourcing quality raw materials and efficient manpower Venture into new project/ product development ▪ Look for Technical alliances to develop newer and technically advanced
Slide 38: Thank You
Thank You SSlizer) @ NSE SALZERELEC 3S& The edee ts efficiency 517059 Bloomberg SZE IN REUTERS SALZ.BO For further information, please contact: Company : Investor Relations Advisors : Salzer Electronics Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Baskarasubramanian Ms. Savli Mangle baskarasubramani