Slide 1: Exchange filing cover letter: Revised Investor Presentation
Varroc l:ngineering Limit9d Regd. & Corp. Office L-4, MIDC, Industrial Area Tel +91 240 6653600 email: varroc.info@varroc.com Waluj, Aurangabad 431 136 Fax +91 240 2564540 www.v<1rrocarouo.com Maharashtra, India CIN: L28920MH1988PLC047335 varroc VARROC/SE/I NT/2019-20/ 41 August 10, 2019 To, (1) The
Slide 2: Q1 FY20 Results Presentation
Q1 FY20 Results Presentation
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: Industry Trends in Q1 FY20
Industry Trends in Q1 FY20 Global Passenger Cars Market Production -6.6% -2.1% -16.2% • All major Passenger Vehicle 67,65,787 43,56,403 42,64,544 60,13,406 56,14,419 58,53,866 markets declined YoY in Q1 FY20 • The decline in China accelerated from FY19 due to slowing economic growth and lack of govt
Slide 5: Business Highlights: Q1 FY20
Business Highlights: Q1 FY20 • Revenue from Operations for Q1 FY20 declined by 2.0% YoY* • EBITDA for Q1 FY20 at INR 2,788 Mn*; +20bps YoY • VLS: Revenue increased 1% in Euro terms; margin improved by 40bps YoY to 9.5%* • India Business: Revenue was almost flat against double digit decline in indust
Slide 6: Varroc Group: Summary Key Financials Q1 FY20
Varroc Group: Summary Key Financials Q1 FY20 (INR Mn) Growth Particulars Q1 FY 20 Q1 FY19 (Y-o-Y) Revenue from Operations - Reported 28,701 29,270 -1.9% Revenue from operations : like-for-like 28,701 29,273 -2.0% Other income - Operating 280 165 Other income - Non operating 11 96 EBITDA - Reported *
Slide 7: Varroc Group: Business Wise Performance Q1 FY20
Varroc Group: Business Wise Performance Q1 FY20 (INR Mn) Q1 FY20 Q1 FY19 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA Like-for-like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 10,359 10,359 1,066 1,050 10.1% 10,431 10,431 1,051 1,051 1
Slide 8: India Business: Financial Performance
India Business : Financial Performance Revenue India Revenue Split by Customer(1) (INR Mn) -0.7% Q1 FY 20 % Bajaj 10,431 27.1% Honda 10,359 Royal Enfield 3.2% 53.3% 3.9% Yamaha 2.6% Q1 FY2019 Reported Q1 FY2020 Mahindra & Mahindra 9.9% Others Revenue nearly flat in a tough external environment EBITD
Slide 9: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance 50% China Joint Venture: Q1 FY 19 Revenue: 1605 Mn INR Revenue (1) Q1 FY 20 Revenue: 1009 Mn INR VLS Revenue Split by Customer(2) (INR Mn) Q1 FY 20, % -1% Customer A 18,046 18,050 20.9% 21.5% Customer B 17,840 17,840 Customer C Customer D 16.3% 1
Slide 10: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) +5.4% 7.5 28 26 24 0.9 23.8 1.4 - 0.1 21.6 22 1.0 0.2 20.5 0.2 6.7 - 0.2 20 3.8 0.1 - 18 16 15.6 - 14 12 10 Q1 FY19 Ind AS 115 Brazil, Turkey Discontinued Q1 FY19: Revenue RM impact Overheads Other income Q1 FY20: Start-up Costs Laun
Slide 11: Highlights of Major Order Wins and Near Term Potential
Highlights of Major Order Wins and Near Term Potential Business New Business wins: VLS / Recent orders: India Near term potentials VW is set to become our second largest customer in FY20 & the largest in FY21. Overall Net Business Wins of Eur 93 Mn Ford: In discussion for some programs in and VLS -
Slide 12: R & D / Business Updates – Q1 FY20
R & D / Business Updates – Q1 FY20 Global Lighting Business • Updates on new locations • Brazil: Industrialization on track to support our 2nd customer launch and ramp up by December. This is full vehicle lighting including our first HL launch in Brazil. • Morocco: Seven new projects will be launche
Slide 13: Poland Manufacturing Plant: Construction Status
Poland Manufacturing Plant : Const. Status Outside view Manufacturing Area – inside view 1 Roof insulation and proofing Manufacturing Area – inside view 2 15
Slide 14: Thank You
Thank You