Black Box Limited · NSE:BBOX
Black Box — AGC Networks — Q3 FY2021 Earnings Presentation
40 slides from Black Box's earnings presentation, February 2021
Slide 1: AGC Networks Ltd. Investor Presentation
AGC Networks Ltd. INVESTOR PRESENTATION February 2021 Think Global. Act Local. 1
Slide 2: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by AGC Networks Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Snapshot
SNAPSHOT Who Are We AGC Networks including Black Box is a leading digital technology solutions provider, having expertise in architecting, deploying, managing and securing Rs 4,994 Crores 8,000+ 100+ customer IT and communications infrastructure FY20 Revenue Global Customers Fortune 500 Companies Wh
Slide 4: Our Journey from Local to Glocal
OUR JOURNEY FROM LOCAL TO GLOCAL 1986 1994 - 2004 2010 2011 2014-2018 2019 2020 2020 Onwards Appointed AT&T’s SI In India Rechristened and AGC goes Global AGC amplifies Expanding Global Tuck-in acquisitions Strategy to Sustain, Incepted as Reimagined Customer centricity Presence Transform & Grow Tat
Slide 5: Our Board of Directors
OUR BOARD OF DIRECTORS Sanjeev Verma Sujay Sheth Neha Nagpal Whole time Director Chairman – Independent Independent Additional Director Director Experience: 24 years Experience: 25 years Experience: 13 years Deepak Kumar Bansal Dilip Thakkar Anshuman Ruia Executive Director & Independent Director No
Slide 6: Our Management Team
OUR MANAGEMENT TEAM Sanjeev Verma Deepak Kumar Bansal Rick Gannon President Executive Director & Head of GSI Business Global CFO Experience: 24 years Experience: 22 years Experience: 20 years Lisa Davidson Mahua Mukherjee Doug Oathout Head of HR North America Head of HR APAC, India & Head of Partner
Slide 7: Improving Financial Flexibility
IMPROVING FINANCIAL FLEXIBILITY Promoter Funding Balance Sheet Strength Credit Rating • Promoters infusing equity through • CRISIL has assigned BBB-/Stable • Transformation at Blackbox has warrants: Rs.225 Crores at rating (Investment Grade) to the improved the financial strength Rs.675 per Warrant
Slide 8: Inorganic Strategy
INORGANIC STRATEGY Think Global. Act Local. 8
Slide 9: Inorganic Growth Strategy
INORGANIC GROWTH STRATEGY Identify Businesses that provides expansion through scale and revenues currently operating with sub-optimal margin profile ✓ Capability expansion in areas like Cloud, Data center, Cyber Security, IOT ✓ Geographic expansion within US and Europe and APAC Complementary to exis
Slide 10: Acquisition History
ACQUISITION HISTORY Company Acquired Rationale Strategic Objectives fulfilled ▪ Expands offerings, scale and Geographic reach to Service Global Black Box Corporation Enterprise Clients ▪ Increased AGC’s combined revenues by over $600mn ▪ Increase and strengthen AGC | Black Box presence and offerings
Slide 11: Improved Service Offerings and Scale via Acquisition of Black Box
IMPROVED SERVICE OFFERINGS and SCALE VIA ACQUISITION OF BLACK BOX Focus on Global Solutions Integration (GSI) + Technology Product Solutions Focus on Global Solutions Integration Business (GSI) business (TPS) Unified Communications & Collaboration Connected Buildings Data Center & Edge IT 5G / Wirel
Slide 12: Black Box Transformation Since AGC Acquisition
BLACK BOX TRANSFORMATION SINCE AGC ACQUISITION Revenue* (in Mn $) & Gross Margins Adjusted* EBITDA (in Mn $) & EBITDA Margins 27.7% 27.6% 26.7% 28.1% 30.0% 29.9% 29.3% 4.5% 5.1% 6.0% 6.1% 4.5% 6.8% 6.6% Covid-19 impact Covid-19 impact $144 $148 $146 $146 $157 $9.9 $10.4 $136 $8.8 $9.1 $118 $7.5 $6.4
Slide 13: Think Global – Act Local
THINK GLOBAL – ACT LOCAL Our strategy is to be ‘GLOCAL’ by delivering solutions to a client locally wherever they are! Across 6 Regions and 30+ Countries… Ireland Delivery Employees Centers India 607 6 Asia Pacific 149 11 MEA 114 4 Europe 270 16 Latin America 108 3 North America 1,995 35 13 13
Slide 14: Organic Growth Opportunities
ORGANIC GROWTH OPPORTUNITIES Investment in talent acquisition Investment in refreshing the sales team, Cloud based Offerings hiring of partner managers and solution Launching of new cloud-based offerings architects for new offerings 05 01 Focus on Organic Growth Cross Selling Data Center Opportuniti
Slide 15: Our Endeavor
OUR ENDEAVOR Technology Consulting Global SI/IT ICT Solution Value Added Product Distributors Companies Services Integrators Resellers Companies Our endeavor is to be leading Technology Solution Integrator Gross Margin Gross Margin Gross Margin Gross Margin Gross Margin Gross Margin 50%+ 40-50% 30-4
Slide 16: Way Forward
WAY FORWARD Manage Organizational Improve Operational Risks and Compliance Efficiencies Adherence Increase Market Deliver Return on Penetration Technology Investments Optimize Operating Costs Accelerate Revenue Growth To become a Leading IT Solution Partner for Global Clients 16
Slide 17: Industry Overview
INDUSTRY OVERVIEW Think Global. Act Local. 17
Slide 18: Defined by Technology: Today and Tomorrow
DEFINED BY TECHNOLOGY Spending on communications services -Unified Communications technology reached $1.4 tr in 2020 The Global Manage Services market is expected to grow from USD 223.0 bn in 2020 to USD 329.1 bn by 2025 at a CAGR of 8.1% 3X Growth in Hybrid Cloud Adoption by enterprises APAC offers
Slide 19: Growth Drivers
GROWTH DRIVERS Based on various sources such as Gartner, GMM Insights etc below are the management estimates Industry Size (USD Bn) Drivers Unified Communications 8% 51 and Collaboration 30 ▪ Widespread global network of 4G connectivity ▪ Ongoing investments for early commercialization of 5G network
Slide 20: Business Overview
BUSINESS OVERVIEW Think Global. Act Local. 20
Slide 21: Product Solutions & Services Offerings
PRODUCT SOLUTIONS & SERVICES OFFERINGS Global Solutions Integration Business (GSI) Technology Product Solutions (TPS) Delivers digital transformation solutions that helps to design, Markets, sells, and distributes IT infrastructure products deploy, manage and strategize IT operations primarily throu
Slide 22: Key Pillars in GSI Portfolio
KEY PILLARS IN GSI PORTFOLIO Connected Buildings Digital Workplace Customer Experience Solutions Global Multisite Deployments Structured G Premise & Hybrid UC&C Managed UCaaS Contact Center Cabling Digital Transformation (Cloud) Premise to Cloud Upgrade Carrier Self-Service/Automation Application Im
Slide 23: Digital Infrastructure
DIGITAL INFRASTRUCTURE Solution Overview Professional, managed and support services including strategy, Contact Center Infrastructure Upgrade for an assessment, capacity planning, consulting, design, performance analysis Indian Logistics Company and implementation for infrastructure deployments, mod
Slide 24: Unified Communications & Collaboration (UCC)
UNIFIED COMMUNICATIONS & COLLABORATION (UCC) Solution Overview Comprehensive solutions to transform, migrate, and integrate unified Seamless Migration for Voice Technology Service communication and collaboration platforms The Client: This healthcare provider, known worldwide for its excellence in Su
Slide 25: Mobility and 5G
MOBILITY and 5G Solution Overview Enterprise WiFi, distributed antenna systems (DAS) / small-cell design, deployment and management to enable connectivity in challenging Ubiquitous, 5G-Ready Wireless Coverage locations from high-rises to buildings with large footprints and below ground features The
Slide 26: Maintenance & Managed Services
MAINTENANCE & MANAGED SERVICES Solution Overview Value proposition covers the full lifecycle of IT services – from procurement of technology to configuration, design, implementation and management of complex Global 24/7/365 Managed Services environments Standardized set of offerings for on demand re
Slide 27: Technology Product Solutions
TECHNOLOGY PRODUCT SOLUTIONS TPS provides connectivity that enables businesses to better visualize and analyse information ✓ Strong brand awareness with 40+ years of history with sizable installed base ✓ We are a market leader in control room designs and deployments with reputation for being the bes
Slide 28: Technology Product Solutions Portfolio
TECHNOLOGY PRODUCT SOLUTIONS PORTFOLIO Signal Switching & Infrastructure & IoT & Networking Visualization Connectivity KVM IoT Cable IoT Gateways Copper (Bulk / Patch) High Performance Data Acquisition Units Custom (Copper / Fiber) Desktop IoT Sensors (wired/wireless) Fiber (Bulk / Patch) KVM Manage
Slide 29: Our Customers
OUR CUSTOMERS Bank of America. ‘intel) ja | Ss _A Hewlett Packard SuNTRUST Enterprise Cleveland Clinic a TATA "TATA CONSULTANCY SERVICES Cayex Genentech etisalat +\& Infosys ‘Disney fh Trinity Health rece z <*> epF ENERGY Bloomberg —29—
Slide 30: Entrenched Customer Relationship
ENTRENCHED CUSTOMER RELATIONSHIP Stable Long Tenure of Relationship* 14% 21% 28% 31% Tech Companies Hospitals Manufacturers Utility Co. 21.4 21.6 10.5 7.4 Broadcast Co. Retailers Hotels Banks FY14 FY17 FY20 9MFY21 Revenue Contribution *Top10 Clients – Weighted Average No. of Years 30
Slide 31: Our Partners
OUR PARTNERS +" | <> ‘dels AVAYA UlNMcAfee Accu-lech | oe | NUTAND< Hewlett Packard i) TREND = JUNIPCL A symantec. SGENESYS ORACLE NICE’ verint D> poly “ihse. che: CaMitel commscepe riverbed KVM & Beyon ADDER ANIX(E? Io CITRIX | -31—
Slide 32: Well Diversified Global Business Model – 9MFY21
WELL DIVERSIFIED GLOBAL BUSINESS MODEL – 9MFY21 Revenue by Geography Revenue by Industry India, 7% Retail, 5% Europe, 9% Others, 21% Technology, 8% MEA, 2% Manufacturing , 9% APAC, 5% Financial LATAM, 1% Services, Distributors, 23% 10% North America, 76% Healthcare, 11% Business Services, 13% Client
Slide 33: Organization Sized to Scale Growth
ORGANIZATION SIZED TO SCALE GROWTH AGC Skills Across Talent Acquisition: Digital Workflow 1876 Ratio-centric manpower including sales, delivery and services team – capable and technically competent to Connected Building 365 achieve growth Data Center 341 Dedicated talent acquisition team focusing on
Slide 34: Financial Highlights
FINANCIAL HIGHLIGHTS Think Global. Act Local. 34
Slide 35: Q3 & 9MFY21 Consolidated Financial Highlights
Q3 & 9MFY21 CONSOLIDATED FINANCIAL HIGHLIGHTS In Rs. Crores Revenue EBITDA PAT 8.6% 7.7% 3.4% 3.7% 1,218 1,241 104 46 96 41 Q2FY21 Q3FY21 Q2FY21 Q3FY21 Q2FY21 Q3FY21 7.1% 7.5% 0.0% 2.7% 3,745 3,453 267 258 92 0 9MFY20 9MFY21 9MFY20 9MFY21 9MFY20 9MFY21 35
Slide 36: Q3FY21 – Consolidated P&L
Q3FY21 – CONSOLIDATED P&L Particulars (Rs. Crs. ) Q3FY21 Q3FY20 YoY Q2FY21 QoQ 9MFY21 9MFY20 YoY Revenue from Operations 1,241 1,258 -1% 1,218 2% 3,453 3,745 Gross Profit 390 390 391 1,097 1,154 Gross Profit Margin 31.4% 31.0% 32.1% 31.8% 30.8% Total Other Expenses 294 283 287 839 887 EBITDA 96 107
Slide 37: Historical Consolidated Income Statement
HISTORICAL CONSOLIDATED INCOME STATEMENT Particulars (Rs. Crs. ) FY18 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 9MFY21 Revenue from Operations 733 1,853 4,994 994 1,218 1,241 3,453 Gross Profit 204 496 1,555 316 391 390 1,097 Gross Profit Margin 27.8% 26.8% 31.1% 31.8% 32.1% 31.4% 31.8% Total Other Expenses 17
Slide 38: Historical Balance Sheet
HISTORICAL BALANCE SHEET Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20 Sep-20 Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20 Sep-20 EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant And Equipment 23 156 63 70 Equity Share Capital 28 30 30 30 Right Of Use Asset - 0 187 140 Other Equity 62 (
Slide 39: Annexure – Links to Stock Exchange Intimations
Annexure – Links to Stock Exchange Intimations Particulars Links CRISIL Ratings Rationale Press Release Press Release 4 Press Release 3 Black Box Corporation Acquisition Press Release 2 Press Release 1 Fujisoft Technologies UAE Press Release Pyrios Pty Ltd (Australia) Press Release 2 Pyrios Pty Ltd
Slide 40: Contact Us
CONTACT US Company : Investor Relations Advisors : Strategic Growth Advisors Private Limited AGC Networks Ltd. CIN: U74140MH2010PTC204285 CIN: L32200MH1986PLC040652 Rahul Agarwal / Ami Parekh Deepak Bansal rahul.agarwal@sgapl.net / ami.parekh@sgapl.net deepak.bansal@agcnetworks.com +91 982143 8864 /