Slide 1: Exchange filing cover letter
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/2023-24/24 May 23, 2023 To, The Manager- Listing Th
Slide 2: Press Release
Press Release For Full Year • Consolidated revenue from continued operations was ₹68,631 million in FY 22-23, registering a growth of 17.4% on YoY basis • Consolidated EBITDA margins for continued operations for FY 22-23 were at 8.7%, improved by 210 bps YoY • PAT for continued operations was positi
Slide 3: Press Release
Press Release Our strong R&D capabilities helped us in filing 15 patents in FY23 from the group, besides enabling us to commercialize new productsin this financial year. During the current financial year, our businesses will continue their focus on profitability improvement, FCF generation, prudent
Slide 4: Financial Results Q4 FY23
Financial Results Q4 FY23 23rd May 2023
Slide 5: 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 6: 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 7: Highlights Q4 FY23 & Full Year 22-23
Highlights Q4 FY23 & Full Year 22-23 1. In Q4 FY23, registered 2.6% growth on YoY basis vs 2W market de-growth of -3%. Full Year revenue grew by 17.5% 2. EBITDA margin at 9.5% in Q4 FY23, higher by 340 bps on YoY basis and 170 bps vs Q3 FY23 Full Year EBITDA at 8.7% higher by 210 bps against last ye
Slide 8: Automotive Production in India
Automotive Production in India 4.60 4.50 Units in million • 2W production saw de-growth on YoY because of export getting 4.37 impacted by geo-political issues and domestic volumes still impacted by lower consumption in rural area whereas other segments saw growth due to improved economic activity an
Slide 9: Consolidated Financials of Continued Operations
Consolidated Financials of Continued Operations Rs. In Million Q4 FY23 Q4 FY22 YoY Q3 FY23 QoQ FY 22-23 FY 21-22 YoY Revenue^ 17,011 16,576 2.6% 17,228 -1.4% 68,932 58,658 17.5% Adj. EBITDA^ 1,613 1,009 59.9% 1,345 18.5% 5,986 3,892 53.8% EBITDA % 9.5% 6.1% 340 bps 7.8% 170 bps 8.7% 6.6% 210 bps Rep
Slide 10: Revenue Breakdown for FY22-23 for Continued Operations
Revenue Breakdown for FY22-23 for Continued Operations Business Unit Segment Aftermarket, 8.6% IMES, 3.8% Others, 3.8% PBU, 32.5% 4 Wheeler, 24.7% Lighting, 21.0% 2&3 Wheeler, MBU, 12.1% 71.5% EBU, 22.0% Geography Customer Outside India, 18.3% Bajaj, 37.5% Other Customers, 62.5% India, 81.7% Confide
Slide 11: Consolidated Debt Position & Leverage Ratios
Consolidated Debt Position & Leverage Ratio’s Rs. In Million 31st March 2023 As on Divestment 30th Sep 2022 31st March 2022 (6th Oct 2022) Gross Debt 16,350 17,620 15,534 Cash Liquidity* 3,571 1,920 1,178 Net Debt 12,779 ~13,000 15,700 14,356 Equity 10,042 8,990 8,990 20,140 Annualised EBITDA 5,986
Slide 12: New Lifetime Order Win in FY23 is Rs. 51,782 million
New Lifetime Order Win in FY23 is Rs. 51,782 million Lifetime Business win of Rs.51,782 Million Lifetime Revenue win from ICE & EV Players Start of Production Rs. In Million FY 2023 14,263 17968 FY 2024 16,896 35% EV ICE FY 2025 Onwards 20,623 33814 65% Lifetime Revenue win from Customers Lifetime R
Slide 13: 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 14: Awards & CSR
AWARDS & CSR BAL-Quality “Platinum” Award received by Pantnagar plantv Excellence in New Product Design & Development received from ACMA by DIPL R&D Waluj Varroc Cricket Tournament 2022 Workmen development module by Varroc Academy in 2 batches Blood donation Camp organized on 21st March 2023 on CMD
Slide 15: Annexure: About Varroc
Annexure 1 : About Varroc Release April 2023; next update June 2023
Slide 16: Vision Mission
Vision Mission Create safe, smart and sustainable Be the trendsetter in delivering highest value for future mobility solutions for everyone. money mobility solutions • Extend India Market leader position in 2W mobility, lighting, and driver assistance to the world • Double profitable growth by 2030
Slide 17: Values
Values Sincerity Humility Integrity Passion Self-Discipline To speak & act from To walk with everyone To do what is right To go distance against To make it all happen the heart all odds
Slide 18: About Us
About Us Varroc is a leading global auto technology company with a product portfolio covering a wide range of electrical, electronics, 07 6,500+ lighting, polymer, metallic, Countries Employees after-market and advanced safety solutions 36 Operating Manufacturing Facilities REVENUE USD 842 MILLION B
Slide 19: Our Journey
Varroc’s Transformation into a Our Journey Global Auto Technology Group 2022 2019 Signed SPA with Plastic Omnium to divest 4W Lighting Operations in EU & America 2017 Acquired 74% stake in CarIQ, a leading Telematics Began localized production of 2W EV components in India 2011 Acquired 90% stake in
Slide 20: Our Global Footprint
Our Global Footprint Timisoara Targu Mures Changzhou Krakow Romania Chongqing Poland China Dortmund Germany Cambiano Tokyo Sumirago Japan Italy EUROPE ASIA Romania India Poland China Hanoi Vietnam Italy 07 6,500+ Vietnam Germany Japan COUNTRIES EMPLOYEES Czech Republic Aurangabad Pune SEGMENTS 90+ 3
Slide 21: Global Business
Global Business With diversified product lines Business Division - Global 4W Business Division - India Electronics & Lighting O.I. Polymer Electrical-Electronics & Lighting Lighting Electronics 13 Facilities in India 10 Facilities in India 2 Manufacturing Facilities in China and 3 Manufacturing Faci
Slide 22: Technology for Two Wheelers
Technology for Two Wheelers Electronic Fuel Injection LED Headlamps, Mirrors for ICE vehicles and BS6 Safety Sustainability catalytic converters Traction motor and controller, Power assist ISG, and e- Connected Displays, TFT Drivetrain energy management and sensor Interfaces, Electrification systems
Slide 23: Technology for Four Wheelers
Technology for Four Wheelers ADAS, Driver Monitoring Systems, Surround View Systems, LED Headlamps & LCUs, Adaptive Front Safety Lighting Systems Mirrors Safety Signature Lighting, Interior Systems, In-Cabin Sensing, Personalization Personalization Interior Mood Lighting, Center Consoles FOTA in Tel
Slide 24: Product Portfolio Enhancement
Product Portfolio Enhancement Living our vision 1990 2010 2020 2030 • Proprietary products ELECTRICAL - ELECTRONICS & ELECTRICAL - ELECTRONICS ELECTRICAL - ELECTRONICS LIGHTING with continuous focus & LIGHTING & LIGHTING ADAS, DMS on innovative, cost competitive designs Lighting Catalytic Converter
Slide 25: Our 2W and 3W EV Capabilities
Our 2W and 3W EV Capabilities Charger • Locally designed, developed Telematics and manufactured • Fully IoT enabled machines BMS • Complete vertical integration DC-DC converter for Electronic Manufacturing • Motor Dyno Testing System for testing 2W and 3W EV Traction motor controller Traction motor/
Slide 26: Comprehensive Solution Provider to 2W OEMs in India
Comprehensive Solution Provider to 2W OEMs in India Diversified Portfolio Catering to 2W and 3W Segments Illuminated Handlebar Switch Mirror Assembly Adjustable Lever- holder Assembly Instrument Cluster/ USB Charger/ Seat Assembly Integrated Throttle Position Sensor/ Handlebar Assembly Switch Capaci
Slide 27: Product Portfolio for Passenger Vehicle
Product Portfolio for Passenger Vehicle Broad Portfolio of Lighting, Metallic, Polymer and Advanced Safety Solutions End to end capabilities across design, Engineering, testing/validation, tooling, manufacturing and delivery Polymer Lighting Metallic Electronics Roof Rails ADAS and DMS Gears Instrum
Slide 28: Unlocking Synergies across Businesses
Unlocking Synergies across Businesses Varroc's unique positioning as a systems supplier is strengthened through collaboration across its businesses. Traction Motor 4W ORVM Mirror with Gearbox Polymer + Electrical Electrical + Metallic Cross Mirror and Tailgate Business Seat with Signal Lighting Poly
Slide 29: Unlocking Synergies across Segments
Unlocking Synergies across Segments Varroc Vision Processing Platform one platform – various products and market segments VCAM-Air - Dual ADAS Systems Lev Dashboard Camera 1 – 2 From Mono Camera to Sensor HW: Ambarella CV22 SoC After Market- OEM Segment Fusion Platform Fleet Segment SW: Front Camera
Slide 30: Excelling as a Systems Supplier
Excelling as a Systems Supplier Components • Customer CTQs • Component Design • Robust analysis to predict the design meets all CTQs • Tolerance analysis to ensure DFM Motor • Material and component data Base to speed up the design Sub-Systems • Customer requirements and CTQs • Sub-system level CTQs
Slide 31: Capabilities: Product Development
Capabilities: Product Development End-to-end capabilities across design, engineering, testing/validation, tooling, manufacturing and delivery Testing and Validation Project and Program Facilities CAE and Simulation Management Structural & Vibration Functional Performance DFSS/DMAIC Product Life Cycl
Slide 32: Capabilities: Manufacturing
Capabilities: Manufacturing ELECTRICAL - ELECTRONICS LIGHTING METALLIC POLYMER • SMT Lines for Electronics • High Vacuum Metallizing • Forging (Cold, Warm and Hot) • Plastic Injection Molding assemblies • Foam Molding • Hard Coating and UV curing • Heat Treatment • Winding Machines for • Dolphin spi
Slide 33: Our Customers
Our Customers TWO/THREE WHEELERS PASSENGER CARS COMMERCIAL VEHICLES EARTH MOVERS & OFF ROADS
Slide 34: Our Commitment
Our Commitment Creating meaningful differences to the society and environment Environmental Nurturing Future Social Impact Programs Sports Talent Programs • Kham River Eco Restoration Project (1.5 km) • Varroc Vengsarkar Cricket Academy (VVCA) • Learn and Earn Program at Varroc Academy • Solar & Win
Slide 35: Our Key Strengths
Our Key Strengths Continuous Focus on R&D Strong Competitive Long Standing, Comprehensive Low-Cost Capabilities Enhancing Position in a Growing Growing Customer Solution Provider Manufacturing Portfolio Market Segment Relationships Footprint • End-to-end services across design, • Developing innovati
Slide 36: Board & Leadership Team
Board & Leadership Team Independent Directors Arjun Jain Business Division Vidyadhar Limaye Head India and President –Polymer Business Marc Szulewicz Whole-time Director • Total Experience: ~34 years Ex-General Manager, • Previously associated with IAC • Total Experience: ~10 years Foreign equipment
Slide 37: Thank You
la THANK YOU Voarrfroc EXCELLENCE