Slide 1: Varroc Engineering Limited - Investor Presentation filing letter
Varroc Engineering Limited Regel. a. Corp. Office l-4, l'vllDC, Industrial Area · Waluj, Aurangabad 431 136 I Tel +91 240 6653600 fax +91 240 2564540 email: varroc.info@varroc.com www.varroc~ com Mah.;irashtra, India CIN: L28920MH1988PLC047335 Vdrroc VARROC/SE/INT/2020-21/ 18 June 30, 2020 To, (1) T
Slide 2: Financial Results Q4 and FY20
Click to edit Master title style VARROC Financial Results Q4 and FY20 ::25th June 2020:: 1
Slide 3: Disclaimers
Disclaimers Click to edit Master title style 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 developme
Slide 4: CY 2020 Started with a substantial negative impact of Novel Coronavirus
Click to edit Master title style CY 2020 Started with a substantial negative impact of Novel Coronavirus across geographies beginning with China (Jan & Feb) and then spreading across the globe (February onwards) 3
Slide 5: Significant Reduction in Volumes
March 2020 : Automotive Industry Performance (month volumes*) Click to edit Master title style Significant Reduction in Volumes 2.02m -48% 1.62m -28% 1.60m -38% -57% 1.26m 0.99m 1.04m 1.16m -38% 0.57m 0.33m 0.21m Mar-19 Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 China US Europe I
Slide 6: Industry Trends in Q4 FY20 YOY
Industry Trends in Q4 FY20 YOY Click to edit Master title style Global Passenger Vehicle Market Production 6.01m 5.66m • Passenger Vehicle volumes in Q4 FY20 declined significantly 4.23m -46% across all regions 3.80m 3.24m • China PV volumes significantly impacted by Novel Coronavirus gradually spre
Slide 7: Business Highlights: Significant challenges during the quarter
Business Highlights: Significant challenges during the quarter Click to edit Master title style • The auto industry volumes were sluggish even before arrival of the pandemic • COVID-19 started impacting the Chinese Auto Sector, including component supplies, since January • Supply Chain issues in Feb
Slide 8: Business Highlights: Q4 FY20
Business Highlights: Q4 FY20 Click to edit Master title style • Revenue from Operations for the quarter declined by 12.5% YoY* • Consolidated EBITDA on a like-for like basis for the quarter at INR 985 Mn*; EBITDA margins at 3.6% • India Business: Revenue declined by 16.4% due to the weak industry en
Slide 9: Varroc Group: Financial Performance
Varroc Group: Financial Performance Particulars Click to edit Master title style Q4 FY20 Q4 FY19# Growth (Y-o-Y) FY20 FY19# Growth (Y-o-Y) Revenue from Operations - Reported 27,447 31,534 -13% 1,11,219 1,20,365 -8% Revenue from operations : like-for-like 27,447 31,379 -13% 1,11,219 1,20,282 -8% Othe
Slide 10: Varroc Group: Business Wise Performance Q4 FY20
Varroc Group: Business Wise Performance Q4 FY20 Click to edit Master title style Q4 FY20 Q4 FY19 Revenue Revenue like- EBITDA # Revenue EBITDA # Change YoY SBU Revenue for-like EBITDA Like-for-like % EBITDA Revenue like-for-like EBITDA Like-for-like % EBITDA India Business 8,525 8,525 695 672 7.9% 1
Slide 11: India Business: Financial Performance
India Business : Financial Performance Revenue Click to edit Master title style India Revenue Split by Customer(1) Q4 FY 20 % 22.2% Bajaj Honda 2.7% Royal Enfield 4.5% 55.4% 6.1% Yamaha Mahindra & Mahindra 9.1% Others Revenue declined in a tough external environment and due to impact of plant shut d
Slide 12: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance Revenue (1) Click to edit Master title style 50% China Joint Venture: Q4 FY 19 Revenue: 976 Mn INR Q4 FY 20 Revenue: 861 Mn INR VLS Revenue Split by Customer (2) Q4 FY 20, % (INR Mn) +0.7% -10% 17.9% 20.0% 20,838 20,683 17.8% 19.8% 18,595 18,595
Slide 13: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) Click to edit Master title style 28 2.2 - 26.4 24.2 23 2.6 18 13 13.0 8 3.0 5.7 3.4 3.8 3 0.3 0.8 10.4 -2 Q4 FY19* Brazil, Morrocco Q4 FY19: Revenue impact RM impact Overheads Other income Q4 FY20: Start-up Costs not Launch related I
Slide 14: Varroc Group: Business Wise Performance FY20
Varroc Group: Business Wise Performance FY20 Click to edit Master title style FY20 FY19 Revenue Revenue like- EBITDA # Revenue EBITDA # Change YoY SBU Revenue for-like EBITDA Like-for-like % EBITDA Revenue like-for-like EBITDA Like-for-like % EBITDA India Business 38,253 38,253 3,901 3,832 10.0% 42,
Slide 15: Highlights of Major Order Wins and Near Term Potential
Highlights of Major Order Wins and Near Term Potential Click to edit Master title style Business New Business wins: VLS / Recent orders: India Near term potentials Overall Net Business Wins of Eur 369 Mn (96% of target for FY20) Main business wins came from Americas 156 Mn , 80 VLS - New Business wi
Slide 16: Updates for FY21 – Current Situation (Q1) and Outlook
Updates for FY21 – Current Situation (Q1) and Outlook (rest of the year) Click to edit Master title style Current Situation – Q1 FY21 • April – almost all facilities closed for most of the month; Czech facilities started in week 3/week 4 • May – European facilities functional; delayed start for Mexi
Slide 17: Varroc Group
Click to edit Master title style Confidential - Varroc Group 16