Slide 1: Varroc Engineering Limited
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2022-23/87 November 14, 2022 To, The Manager- Listi
Slide 2: Financial Results Q2 FY23
Financial Results Q2 FY23 14th Nov 2022
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Content
Content 1. Highlights 2. Industry Performance 3. Financials 4. New Business Win 5. Opportunity in Mega Trends and Focus Area 6. Awards & CSR 7 Annexure: 1. About Varroc Engineering Confidential
Slide 5: Highlights Q2 FY23
Highlights Q2 FY23 1. On 6th October 2022, completed the divestment of 4W Lighting business in Europe and America. 2. Outperformed market with 21.2% growth on YoY basis; highest ever revenue for continued operations 3. Lifetime business won from new orders in H1 FY23 of Rs.25.5 billion incl. Rs. 8.7
Slide 6: Automotive Production in India
Automotive Production in India 5.65 • Automotive production grew on YoY basis for all the Units in million segments because of low base 5.24 • 2W grew by 7.7% 4.83 • 3W grew by 24.3% • PV grew by 38.1% • CV grew by 36.2% • On QoQ basis also, we saw good growth because of early festive season • 2W gr
Slide 7: New Structure of Varroc
New Structure of Varroc INDIA One Varroc REST OF THE WORLD Polymer Electrical & Electronics Global Lighting Electronics Including Lighting • 3 Facilities (Italy, Romania • 1 Facility in Romania • 13 Facilities in India • 10 Facilities in India Vietnam) • ADAS, Lighting Electronics (Light • Focused o
Slide 8: Consolidated Financials of Continued Operations
Consolidated Financials of Continued Operations Rs. in Million Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 Quarter Summary Revenue* 18341 16352 15135 34693 27145 YoY 21.2%; QoQ 12.2% Adjusted EBITDA^ 1681 1347 1234 3028 1931 Adjusted EBITDA Margin 9.2% 8.2% 8.2% 8.7% 7.1% YoY 100 bps; QoQ 100 bps; Opera
Slide 9: Varroc Group Business Performance
Varroc Group Business Performance Rs. in Million Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 India Operations (inc. 4W lighting)# Revenue* 16,562 14,111 13,709 30,673 23,918 Adjusted EBITDA Margin^ 9.8% 8.9% 9.5% 9.4% 8.2% Overseas Operations (Remaining# Global VLS + IMES) Q2 FY23 Q1 FY23 Q2 FY22 H1 FY2
Slide 10: Consolidated Debt Position & Leverage Ratio's
Consolidated Debt Position & Leverage Ratio’s As on Divestment (6Th 31st March 2022 (Continued Rs. in Million 30th Sptember’22 31st March 2022 October 2022)^ + Discontinued Operations)^ Net Debt 15,700* ~ 13,000* 14,356 ~ 26,500 Equity 8990 8990 20,140 ~20,140 Annualised Adjusted EBITDA 6722 6722 38
Slide 11: Revenue Breakdown for H1 FY23 for Continued Operations
Revenue Breakdown for H1 FY23 for Continued Operations Business Unit Segment Aftermarket, IMES, 3.7% Others, 3.7% 8.8% MBU, 12.3% 4 Wheeler, 27.9% Lighting, 20.2% EBU, 22.9% 2&3 Wheeler, 68.4% PBU, 32.4% Geography Customer Outside India, 20.3% Bajaj, 39.2% Other Customers, 61.8% India, 79.7% Confide
Slide 12: New Lifetime Order Win in H1 FY23
New Lifetime Order Win in H1 FY23 Lifetime Business win of Rs.25,476 Million Lifetime Revenue win from ICE & EV Players Start of Production Rs. In Million FY23 12,694 FY24 2,749 8676 FY25 Onwards 10,033 34% EV ICE 16800 66% Lifetime Revenue win from Customers Lifetime Revenue win from 2&3W and 4W Pl
Slide 13: EV a Big-Opportunity (New Products in Various BU)
EV a Big-Opportunity (New Products in Various BU) R&D efforts are directed towards ongoing trends Increased Use Stricter Environmental Electrification Autonomous Driving Connectivity Digitalization & IoT Sustainability, Reliability & of Electronics Regulation Efficiency WE OFFER WIDE RANGE OF PRODUC
Slide 14: EV Business won So Far: Highlights and Updates
EV Business won So Far: Highlights and Updates Expected revenue in FY25 Industry product price Total @ Installed for current business based Component averages (Rs per 2W) Capacity (Rs Crs) # on SOB and industry price (Rs Crs) Traction motor 11,000 2W Controller 5,000 DC-DC converter 1,400 866 750 Te
Slide 15: Focus areas for Varroc
Focus areas for Varroc Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure t
Slide 16: Awards & CSR
AWARDS & CSR 35th CII Quality Circle Competition conducted on 21-Sep-22 CII EHS best practices competition 23-Sep-22 3rd CII National DigiTech Circle Competition 2022 13th & 14th Sep-22 won by Pantnagar plant won by VEL -5 plant of Aurangabad won by VEL -3 plant of Pune Blood Donation On 20th July 2
Slide 17: Annexure: About Varroc
rn’ J verroc EXCELLENCE Annexure 1 : About Varroc — eS Gro" _ & ed
Slide 18: About Us
AboutUs Varroc is a Leading Indian Auto Technology Group with a Global Footprint Four primary business lines: • Founded in 1988 in Aurangabad, India by the Jain family • Successful listing on the Indian Stock Exchanges in July 2018 • Strong, long-lasting, growing customer relationships with marquee
Slide 19: Our Journey
Our Journey Varroc’s Transformation into a GlobalAuto Technology Group Polymer Business Acquired Forging Acquired Visteon’s global PV Signed an MoU with Candera GmbH company, IMES, Italy lighting business (now VLS) Varroc Engineering Limited to integrate HMI (Human Machine 1990 listed on the Indian
Slide 20: Symmetric Representation of Varroc (Post Divestment)
Symmetric Representation of Varroc (Post Divestment) Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures Overseas Subsidiaries India Subsidiaries’ & JV ● Varroc TYC (China JV for ● IMES ITALY ● Electrical and Electron
Slide 21: Global Business with Diversified Product Lines
Global Business with Diversified Product Lines INDIAN Operations (76.4%) EUROPEAN Operations (13.0%) CHINA JV (10.6%) Polymer Electrical & Electronics (Includes Lighting) Metallic Global Lighting Electronics Metallic (IMES) Lighting • Supplies precision forged & • Focus on ADAS, Lighting • Global su
Slide 22: Board & Leadership Team
Board & Leadership Team Vidyadhar Limaye Independent Directors Arjun Jain President –Polymer Business President – Electrical • Total Experience: ~34 years Business Unit and Marc Szulewicz Whole-time Director • Previously associated with IAC Ex-General Manager, International, Faurecia, TACO • Total E
Slide 23: Trends @ Varroc
Trends@Varroc For us, innovation is the ability to see GREENER FOCUS ON EV change as an opportunity, not a threat. •Traction Motor and Controller •DC DC Converter •Onboard Charger Global mobility trends we consistently •Battery Management System work towards: FOCUS ON SUSTAINABLE MATERIALS FOR Green
Slide 24: Trends @ Varroc
Trends@Varroc For us, innovation is the ability to see change as an opportunity, not a threat. SAFER SMARTER & CONNECTED •Connected Clusters •EFI ECU •ADB (Adaptive Driving Beam) •TBT (Turn By Turn) Indicator •Matrix Technology in Lighting •Duel Injection Tailgate Carriers •Laser Boosted Headlamps •
Slide 25: Electrification and Efficiency; Connectivity and Digitization
Electrification and Efficiency Connectivity and Digitization 48V-epowertrain platform for LCD to TFT and Connected small vehicles • Android/Car-play OS • Consists of basic units (on board charger, inverter • WiFi/BTLE and DC/DC converter) with PMSM Motor. Total power • Smartphone usage • Digital Key
Slide 26: Customer Centric Manufacturing Company
Customer Centric Manufacturing Company BD & KAM WHAT NEXT AGILITY PROXIMITY DIGITALIIZATION STRUCTURE (INNOVATION)
Slide 27: Cost Leadership in Manufacturing
Cost Leadership in Manufacturing 1 SOURCING 2 VALUE ADDITION & VALUE ENGINEERING 3 INDUSTRY 4.0 (Smart Factories)
Slide 28: Cross Business Unit Collaboration
Cross Business Unit Collaboration 4W ORVM Traction Mirror Motors ORVM With Tailgate Camera Liner System Cross BU Collaboration Spoiler Console Lighting Door Trim Swing Type Illumination Electric Footstep
Slide 29: Why Varroc?
Why Varroc? Varroc’s Vision Statement Q - High Reliability To bring leading-edge technologies to the mainstream markets • Reuse of proven designs • APQP methodology, layered process Audits, Sustenance with high quality and cost competitive solutions by delivering Audits ensures high quality & reliab
Slide 30: Thank you
Thank you Sincerity Humility Integrity Passion Self-Discipline To speak and actfrom To walk with everyone To do what is right To go the distance To make it al happen the heart against al odds