Kaynes Technology India Ltd. · NSE:KAYNES
Kaynes Technology India — Investor Presentation (November 2023)
36 slides from Kaynes Technology India's investor presentation, Nov 20, 2023
Slide 1: Intimation to stock exchanges under Regulation 30
November 20, 2023 The Secretary The Secretary National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, Plot no. C/1, G Block, Corporate Relationship Dept., Bandra-Kurla Complex, 14th floor, P. J. Tower, Bandra (E), Dalal Street, Fort Mumbai - 400 051 Mumbai - 400 001 Stock Code – KAYNES Stock
Slide 2: Kaynes Technology India Limited Corporate Presentation
Kaynes Technology India Limited Corporate Presentation | November 2023
Slide 3: Disclaimer
Disclaimer This presentation is issued by Kaynes Technology India Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute any recommendation o
Slide 4: Disclaimer
Disclaimer This presentation includes certain external industry data and projections that have been obtained from industry publications, surveys and forecasts. Accordingly, the Company and its respective affiliates, advisers and representatives make no representation as to the accuracy or completene
Slide 5: Company Overview
Company Overview
Slide 6: Company overview
Company overview Revenue (INRmn) EBITDA (INRmn) PAT (INRmn) Over 3 decades of experience in providing conceptual design, process PAT EBITDA 9.7% 14.9% 2.3% 8.5% engineering, integrated manufacturing and life-cycle support to OEMs 2.7x margin margin 11,261 2,200 120.0% 120.0% Integrated and IoT enabl
Slide 7: Business evolution and key milestones
Business evolution and key milestones Started exporting sensor electric Listed on NSE/BSE assembly to Phoenix, Established manufacturing Arizona Received approval Established unit in facility at Manesar Growth in aerospace, under the Got approval for Bengaluru defense, power Production Linked Establ
Slide 8: Diversified product portfolio
Diversified product portfolio Aerospace, Outerspace & Automotive Industrial & EV Railways Medical IOT/IT, Cons and others Strategic electronics (33%) (37%) (13%) (4%) (10%) (3%) Cluster PCBA Engine Control Panel UM71 - Receiver Endoscopy cart & ICP HH Sonar Bar Code sensor module Scanner & RFID gate
Slide 9: Investment Highlights
— Investment Highlights
Slide 10: Key investment highlights
Key investment highlights 1 Strong industry tailwinds 2 Integrated ESDM player with end-to-end design and engineering capabilities enabled with IoT solutions 3 Internationally recognized and certified manufacturing facilities supported by a strong supply chain 4 Well diversified business profile wit
Slide 11: Strong industry tailwinds
1 Strong industry tailwinds Global ESDM – A trillion-dollar industry India all set to be a large ESDM Market 2021 – USD 880 Bn 2026E – USD 1,145 Bn FY22 Indian ESDM Market, INR Bn 34% Indian Electronics 5,995 35% 9,263 CAGR: c.32% market India Domestic 16% 15% Electronics 6,376 China Productions 2%
Slide 12: Strong industry tailwinds (cont'd) - semiconductors
1 Strong industry tailwinds (cont’d) Global semiconductor market is expected to be a trillion dollar industry India is a growing semiconductor market Global semiconductor market value by vertical (US$bn1) The electronics ecosystem and valuechain Indian semiconductor market (US$bn) Government support
Slide 13: Strong industry tailwinds (cont'd) - PCB market
1 Strong industry tailwinds (cont’d) Global PCB market overview PCB Market (US$bn) PCB Market share by industry 2 Key Trends CAGR: c.3% 107.7 Lighting Strategic HDI PCB1 market is expected to witness the highest growth due to the 4% Electronics 3% Telecom/Mobile ✓ growing demand for smart wearables
Slide 14: End-to-end design & engineering capabilities
2 End-to-end design & engineering capabilities… Service offering across entire customer value chain Design Industrialization Manufacturing Product End-of-life services services services maintenance services services Prototype OEM Concept to Design manufacturing manufacturing Realization Supply chain
Slide 15: Enabled with IoT solutions
2 …enabled with IOT solutions End-to-end connected asset platform, including business applications, managed cloud service, and ODM Device solution Capture Cloud Connect Control KPTR Services – Client Business Apps Network: IP and Non-IP Legacy / New Systems KPTR Applications Gateway & Devices Connec
Slide 16: Internationally recognized and certified manufacturing facilities
3 Internationally recognized and certified manufacturing facilities R&D and Certifications Capacity for manufacturing at scale augmented by technical capabilities Focused on development of new products and improvement Navi Mumbai of existing products Mysuru Packing ✓ 18 SMT Lines3 Facility Dedicated
Slide 17: Well diversified business profile
4 Well diversified business profile… Revenue across verticals Revenue across segments Automotive 14% Industrial incl EV OEM-Turnkey-PCBA 30% Aerospace, Outer-space & 38% OEM- Turnkey- Box Build 12% Strategic electronics FY23 FY23 ODM Medical Revenue: Revenue: INR 11,261mn Prod. Eng. & IoT Solutions
Slide 18: Portfolio with applications across industry verticals
4 …with a portfolio having applications across industry verticals OSAT & PCB Mobile Auto- Capabilities CEA1 Industrial Telecom A&D2 IT Medical Railway Others3 Fabrication Phones motive Kaynes Technology India Ltd ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Bharat FIH Ltd ✓ ✓ ✓ ✓ ✓ ✓ ✓ Dixon Technologies (India) Ltd ✓ ✓ ✓ ✓
Slide 19: Long-standing relationships with marquee customer base
5 Long-standing relationships with marquee customer base Industry Key Customers Long standing relationship with clients1 Average business period relationship of top 10 customers in each vertical3 Leading global mfg of electronic instruments and 11 Industrial 10 10 electromechanical devices 8 7 7 7 R
Slide 20: Experienced board of directors and leadership team
6 Experienced board of directors and leadership team Ramesh Kunhikannan Anup Kumar Bhat Managing Director & Promoter Independent Director 33 years of experience in the EMS industry Several years of experience Associated with the company since inception Ex. VP Ashok Leyland (subsidiary support) B.Tec
Slide 21: Proven track record of consistent financial performance (1/2)
7 Proven track record of consistent financial performance (1/2) Revenue (INRmn) EBITDA (INRmn) and EBITDA Margins (%) EBITDA CAGR: c.64% 9.7% 13.3% 14.9% 13.5% 11,261 margin 250000.00% CAGR: c.103% 200000.00% 1683 7,062 6,580 150000.00% 4,206 937 891 100000.00% 409 50000.00% 0.00% FY21 FY22 FY23 H1F
Slide 22: Proven track record of consistent financial performance (2/2)
7 Proven track record of consistent financial performance (2/2) Net Worth (INRmn) Asset Turnover ratio (x) 6.2 7.0 10,141 5.7 9,577 6.0 5.0 4.8 4.0 3.7 3.0 2.0 2,018 1,365 1.0 0.0 FY21 FY22 FY23 H1FY24 FY21 FY22 FY23 H1FY24 1,2 Net Working Capital Days Net Debt3/Equity (x) 140.00 0.9 117 119 0.7 120
Slide 23: Strategy for expansion into OSAT & PCB
Strategy for expansion into OSAT & PCB
Slide 24: Backward integration into OSAT and Bare PCB manufacturing
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Backward integration into OSAT and Bare PCB manufacturing Backward integration into OSAT and Bare PCB Current Operations of Kaynes manufacturing PCB SMT2 Assembly IC1 Frontend IC Backend System Design IC1 Design manufacturing fr
Slide 25: Bare PCB manufacturing process
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Bare PCB manufacturing process Inner Layer Manufacturing Process CCL (Copper Clad Plated through Hole Image Transfer Etching Lamination Panel Plating Laminate) (PTH) CCL is a raw material for Image transfer using The inner layer
Slide 26: OSAT and Bare PCB capabilities offer strategic benefits
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy OSAT and Bare PCB manufacturing capabilities offer strategic benefits Supply Chain & Future Market Vertical Integration Readiness ◼ Integrated offerings to customers with OSAT and PCB fabrication ◼ Greater supply chain resilienc
Slide 27: Project execution plan
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Project execution plan Raw Material Sourcing Plan Production Plan Partnering with RM vendors to establish manufacturing facility/ecosystem in India Application filed with State government Upcoming facility near India Semiconduct
Slide 28: Partnered with experienced players across multiple core capabilities
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Partnered with experienced players across multiple core capabilities Technology Partner Other Partners Execution Partner ▪ Global OSAT/ATMP player with over 3 decades of experience ▪ Ponni Tech – Malaysia-based company is experi
Slide 29: Project execution plan
Backward Integration OSAT – Expansion Strategy PCB – Expansion Strategy Project execution plan Execution Plan Raw Material Sourcing & Production Plan ◼ The proposed project will have manufacturing capabilities of Advanced HDI PCBs ◼ Currently, raw materials are sourced from vendors in APAC countries
Slide 30: The Way Forward
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Slide 31: The Way Forward
The Way Forward Focus on full product / box build capabilities Catering to OEMs with in-house test fixtures for reliability, faster turn-around, complex prototypes, zero defects, and upgrading facilities to expand consumer portfolio and provide full box build services to secure a larger revenue shar
Slide 32: Annexure - Financials
Annexure - Financials
Slide 33: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (INRmn) FY21 FY22 FY23 H1FY24 Revenue from operations 4,206 7,062 11,261 6,580 Raw material cost 2,861 4,894 7,801 4,659 Employee expenses 459 602 771 459 Other expenses 477 629 1,006 572 EBITDA 409 937 1,683 891 EBITDA margin (%) 9.7% 13.3% 14.9% 1
Slide 34: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars (INRmn) FY21 FY22 FY23 H1FY24 Gross Block (tangible assets) 979 1,112 1,451 1,895 Accumulated Depreciation 408 473 549 607 Net Block (tangible assets) 571 640 902 1,288 Intangible assets 267 352 426 435 Other non-current assets 165 369 552 947 Total non-curre
Slide 35: Cash Flow Statement (Consolidated)
Cash Flow Statement (Consolidated) Particulars (INRmn) FY21 FY22 FY23 H1FY24 Cash flow from operating activities Profit before tax 109 590 1,260 713 Adjustment for non-operating items 333 386 452 270 Operating profit before working capital changes 442 976 1,713 983 (Increase)/ decrease in inventorie
Slide 36: Thank You
Thank You COMPANY Kaynes Technology India Limited Jairam P Sampath Whole-time Director & Chief Financial Officer Email: ir@kaynestechnology.net Neeraj Vinayak Head Investor Relations Email: neeraj.vinayak@kaynestechnology.net CIN: L29128KA2008PLC045825 Website: www.kaynestechnology.co.in
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