Zen Technologies Limited · NSE:ZENTEC
Zen Technologies — Shareholder Meeting (September 2014)
23 slides from Zen Technologies's shareholder meeting presentation, Sep 27, 2014
Slide 1: 21st AGM Presentation
21st AGM Presentation 27 September 2014 © 2014 by Zen Technologies Limited
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela
Slide 3: Zen – A Brief
Zen – A Brief • Incorporated in 1993 • Traded on BSE since 2004 • Focus on Defence Simulators • Big Opportunity Now in Defence • Future Plans
Slide 4: Total Income and Profit after Tax
N Total Income being there... 10717.24 2009-10 = 2010-11 soe 2012-13 2013-14 Profit after Tax fear 3500 = 3161.56 2009-10 = 2010-11 2011-12 2012-13. 2013-14 Year
Slide 5: Dividend per Share by Year
LAY 2009-10 2010-11 2011-12, 2012-13. 2013-14 Year 6.50 N being there... 6.50 > 5,50 + 4.50 4.50 ~ 3.50-) Dividend in & 2.50 ~ \ \ \\ 150+ 0.50- 2009-10 — 2010-11 2011-12 Year 1.00 1.00 2012-13 2013-14
Slide 6: Current Year Highlights
Current Year Highlights Rs 49.89 Crores turnover Profit After Tax of Rs 9.33 lakhs Earnings Per Share of Re 0.12 Recommended Dividend of Re 1.00 per equity share Bought back 11,72,426 equity shares of the Company for an about Rs 8.10 crores
Slide 7: Risks and Concerns
Risks and Concerns: More players entering the field of simulation No commitment from the end-users Definite expenditure No promise of matching income Government policy Performance guarantee to our clients Dependence on Government High R & D Costs Long receivables and unpredictabili
Slide 8: Inflection Point for Zen & India
Inflection Point for Zen & India “I will prepare and some day my chance will come.” ― Abraham Lincoln
Slide 9: Preparation
Preparation • R&D • Systems Engineering • Building Customer Interfaces – For Products – For Trials – For Payment • Lean Process for Manufacturing
Slide 10: Opportunities
Opportunities • Existing Opportunity • SME4 Defence Initiative • Enhanced R&D for Simulators • Exports – Eurosatory Experience • Aviation Sector – No Credible Indian Player
Slide 11: Procurement Issues - Amplified
Procurement Issues - Amplified • Long Procurement Cycle: – 3 years Minimum as per DPP • Extremely Complicated Process • Very Stringent Requirements • Uncertainty – Threat of Cancellation • Production Requirements • Payment Process
Slide 12: Indian Defence
Indian Defence • Most Innovation Takes Place in SMEs • SMEs cannot afford the Trials • Solution is to Simplify the Process
Slide 13: A Zen Proverb
A Zen Proverb —, Lhe obstacle is the path.
Slide 14: Existing Player to Bat for SMEs
Existing Player to Bat for SMEs • Big Companies Do Bat – Extremely Tedious Process – Sometimes Tender Based – Payment Delayed • Opportunity for Player – Who Is A Technology Player – Who Can Manufacture – Who Has Experience in Trials: Inc. Pre and Post
Slide 15: SME4Def Initiative by Zen
SME4Def Initiative by Zen • As part of Indian Ambition - 75% Self Sufficiency by 2025 • Zen will identify products meant for end use • Will license technology • Will convert prototype to trial-ready system • Will share prototype with defence • Will field the trial ready system • Will share royalty w
Slide 16: What about Large Existing Players?
What about Large Existing Players?
Slide 17: It's the size of the fight in the dog
It's not the size of the dog in the fight, it's the size of the fight in the dog - MARK TWAIN
Slide 18: Existing R&D
Existing R&D • Make Products NATO, etc., Compliant • Add Features to Make Target Country Acceptable • Rigorously Test the Products • Make them Export Worthy
Slide 19: Overseas Ops
Overseas Ops • Eurosatory Experience • Opportunity as Preparedness is Becoming Important in Europe, Middle East, Africa, etc • Cost/Availability of Sims Prohibitive/Difficult • Hire Marketing Team • Showcase in Exhibitions • Build Brand
Slide 20: Aviation Simulators
Aviation Simulators • No Credible Domestic Players • Upcoming Pref for Indigenous Design • Zen – Perfect • Need Expertise to Fill the Gap – Tie-up with a Major Player • Hire A Team with Knowledge • Located in Bangalore
Slide 21: Chinese Bamboo Tree
Chinese Bamboo Tree After the seed for this amazing tree is planted, you see nothing, absolutely nothing, for four years except for a tiny shoot coming out of a bulb. During those four years, all the growth is underground in a massive, fibrous root structure that spreads deep and wide in the earth.
Slide 22: Summary
Summary • An Inflection Point – A Great Opportunity • Existing Opportunity for Police and Def Sims >1 Bn US$ • SME4Def Initiative • Existing Simulators • Aviation Simulators • Overseas Opportunity
Slide 23: Thank You
THANK YOU
Zen Technologies — Shareholder Meeting (September 2014) on 6ix