Black Box Limited · NSE:BBOX
Black Box — AGC Networks — Q4 FY21 Earnings Presentation
49 slides from Black Box's earnings presentation, August 2021
Slide 1: AGC Networks Ltd. Investor Presentation
AGC Networks Ltd. INVESTOR PRESENTATION August 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: Q4FY21 Highlights
Q4FY21 HIGHLIGHTS Think Global. Act Local. 3
Slide 4: FY21 Consolidated Financial Highlights
FY21 CONSOLIDATED FINANCIAL HIGHLIGHTS In Rs. Crores Revenue EBITDA PBT PAT 6.6% 7.5% 4,994 352 96 78 4,674 328 FY20 FY21 FY20* FY21 -73 -80 FY20* FY21 FY20* FY21 *Restated 4
Slide 5: Robust Balance Sheet
Robust Balance Sheet Total Borrowings Net-worth In Rs. Crores 462 207 188 286 176 117 78 -176 Mar-20 Repayment Mar-21 Mar-20* Profit for Other Warrants Mar-21 the year Comprehensive Subscription Income money As on 31st March 2021, Promoters have paid Rs. 188 crores against warrants subscription mo
Slide 6: Deal Wins during the quarter
Deal Wins during the quarter Transaction Value Clients Won a contract from a leading Social Media Company for their data centre installation and upgrade, providing US$ 30 Mn managed services for onsite resources and designing & installing Public Safety DAS system US$ 13.7 Mn Provided In-Building 5G/
Slide 7: AGC Black Box strengthens presence in Middle East
AGC Black Box strengthens presence in Middle East Overview Z Services HQ is a Cyber security cloud services provider, offering Secure Access Service Edge (SASE), Unified Cloud security, Email Cloud Security / Archiving, Cloud Access Security Broker (CASB), Secure Public Wi-Fi Cloud Services, Cyber S
Slide 8: Q4FY21 – Consolidated P&L
Q4FY21 – CONSOLIDATED P&L Particulars (Rs. Crs. ) Q4FY21 Q4FY20* YoY Q3FY21* QoQ FY21 FY20* YoY Revenue from Operations 1,221 1,249 1,241 4,674 4,994 Gross Profit 401 402 0% 389 3% 1,497 1,521 Gross Profit Margin 32.8% 32.2% 31.4% 32.0% 30.4% Total Other Expenses 307 303 293 1,145 1,192 EBITDA 93 99
Slide 9: Improving Financials over last 4 years
IMPROVING FINANCIALS OVER LAST 4 YEARS Particulars (Rs. Crs. ) FY18 FY19 FY20* FY21 Revenue from Operations 733 1,853 4,994 4,674 Gross Profit 204 496 1,521 1,497 Gross Profit Margin 27.8% 26.8% 30.4% 32.0% Total Other Expenses 170 450 1,192 1,145 EBITDA 33 47 328 352 EBITDA Margin 4.5% 2.5% 6.6% 7.
Slide 10: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant And Equipment 23 156 164 164 Equity Share Capital 28 30 30 33 Right Of Use Asset - 0 116 146 Other Equit
Slide 11: Summary of Consolidated Cash Flows
SUMMARY OF CONSOLIDATED CASH FLOWS Particulars (Rs in Cr) FY20* FY21 Operating profit before working capital changes 346 329 Changes in working capital 817 35 Cash generated from operations 1,163 364 Direct taxes paid (net of refund) (26) 49 Net Cash from Operating Activities (A) 1,137 412 Net Cash
Slide 12: Disclosure of Financial Restatement
DISCLOSURE OF FINANCIAL RESTATEMENT A During the financial year 2018-19, BBX, step-down subsidiary of Holding Company, had entered into a credit agreement with Pathlight Capital Fund LLP (the ‘lender’) to avail credit facility amounting to Rs. 692.57 Crores (USD 97.50 Million) for BBC. Further, as
Slide 13: Impact of Financial Restatement
IMPACT OF FINANCIAL RESTATEMENT Balance Sheet Statement 31-Mar-20 31-Mar-20 Particulars (in Rs. Crs) (Before Adjustments (Restated) Restatement) Profit & Loss Statement ASSETS Non-current assets Particulars (In Rs. Crs) FY21 FY20 Property, plant and equipment 62.75 101.62 164.37 PBT before restateme
Slide 14: Medium Term Targets
MEDIUM TERM TARGETS Think Global. Act Local. 14
Slide 15: Medium-term Targets
Medium-term Targets Growth Drivers FY20 FY21 FY23 REVENUE Increasing market 4,994 4,674 7,000 to 7,500 (Rs. Crs) penetration + Addition of new clients Normalised EBITDA Optimize operational Margin 6.6% 7.5% 9.0% - 10.0% efficiencies (%) Optimizing operating costs PBT Margin -1.5% 2.1% 6.0% - 6
Slide 16: Business Overview
BUSINESS OVERVIEW Think Global. Act Local. 16
Slide 17: 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 4,674 Crores 8,000+ 100+ customer IT and communications infrastructure FY21 Revenue Global Customers Fortune 500 Companies Wh
Slide 18: 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 19: Our Board of Directors
OUR BOARD OF DIRECTORS Sanjeev Verma Sujay Sheth Neha Nagpal Whole time Director Chairman – Independent Independent Director Director Experience: 24 years Experience: 25 years Experience: 13 years Deepak Kumar Bansal Dilip Thakkar Anshuman Ruia Executive Director & Independent Director Non-Executive
Slide 20: 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: 24 years Experience: 20 years Lisa Davidson Mahua Mukherjee Doug Oathout Head of HR North America Head of HR APAC, India & Head of Partner
Slide 21: Improving Financial Flexibility
IMPROVING FINANCIAL FLEXIBILITY Promoter Funding Balance Sheet Strength Credit Rating • Promoters infusing equity through • CRISIL has assigned BBB-/Stable • Transformation at Black Box has warrants: Rs.225 Crores at rating (Investment Grade) to the improved the financial strength Rs.675 per Warrant
Slide 22: Inorganic Strategy
INORGANIC STRATEGY Think Global. Act Local. 22
Slide 23: 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, Europe and APAC Complementary to existin
Slide 24: 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 25: 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 26: 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% 30.1% 4.5% 5.4% 6.4% 7.0% 5.0% 7.1% 7.0% 6.1% Covid-19 impact $157 $150 Covid-19 impact $11.0 $144 $148 $146 $136 $146 $9.6 $10.4 $9
Slide 27: 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 630 6 Asia Pacific 186 11 MEA 88 4 Europe 261 16 Latin America 107 3 North America 2,000+ 35 27 27
Slide 28: 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 29: 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 30: 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 30
Slide 31: Industry Overview
INDUSTRY OVERVIEW Think Global. Act Local. 31
Slide 32: 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 33: 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 34: Business Overview
BUSINESS OVERVIEW Think Global. Act Local. 34
Slide 35: 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 36: GSI Portfolio
GSI PORTFOLIO IN-BUILDING 5G/ONGO 4G to 5G Upgrade 5G DAS Public Safety DAS OnGo Private Networks CUSTOMER EXPERIENCE DATA CENTERS Contact Center Inside Plant Build Self-Service/Automation Outside Plant Build Application Integration DC Operations Analytics Hyperscale DIGITAL WORKPLACE CONSULTING FIE
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: Our Customers
OUR CUSTOMERS Bank of America. ‘intel) | Ss ie Hewlett Packard SuNTRUST Enterprise our: a Gicea) cieend Clinic a TATA "TATA CONSULTANCY SERVICES Cswnex Genentech DX Deloitte etisalat +\ Infosys “Dienep fh Trinity Health wo EB € <P eDFENERGY Charlotte-Meckler burg Sc hor Bloomberg “B=
Slide 44: Entrenched Customer Relationship
ENTRENCHED CUSTOMER RELATIONSHIP Stable Long Tenure of Relationship* 14% 21% 28% 30% Tech Companies Hospitals Manufacturers Utility Co. 21.4 22.0 10.5 7.4 Broadcast Co. Retailers Hotels Banks FY14 FY17 FY20 FY21 Revenue Contribution *Top10 Clients – Weighted Average No. of Years 44
Slide 45: Our Partners
OUR PARTNERS +" | <> ‘lols AVAYA UNMcAfee Accu-lech | | NUTAND< Hewlett Packard i) TREND = JUNIPEL A symantec. SGENESYS ORACLE NICE? verint D> poly “ihse. che: CaMitel commscepe riverbed KVM & Beyon ADDER averse (STG erysm citrix gf -5—
Slide 46: Well Diversified Global Business Model – FY21
WELL DIVERSIFIED GLOBAL BUSINESS MODEL – FY21 Revenue by Geography Revenue by Industry India, 6% Retail, 6% Europe, 9% Others, 21% Technology, 10% MEA, 4% Manufacturing, 6% APAC, 9% Financial Distributors, 8% Services, North America, 71% LATAM, 1% 26% Healthcare, 14% Business Services, 9% Client Con
Slide 47: Organization Sized to Scale Growth
ORGANIZATION SIZED TO SCALE GROWTH AGC Skills Across Talent Acquisition: Digital Workflow 2,739 Ratio-centric manpower including sales, delivery and services team – capable and technically competent to Connected Building 516 achieve growth Data Center 529 Dedicated talent acquisition team focusing o
Slide 48: 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 49: 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 /