Zen Technologies Limited · NSE:ZENTEC
Zen Technologies — Investor Presentation (April 2018)
31 slides from Zen Technologies's investor presentation, April 2018
Slide 1: Investor Presentation April 2018
Investor Presentation April 2018
Slide 2: Contents
Contents 1 Company Snapshot 3 2 Key Milestones 4 3 Technocrat Management 5 4 Business Model 10 5 Competitive Edge 11 6 Combat Training Centre 16 7 Financial Overview 20 8 Growth Drivers 26 © Zen Technologies Limited – All Rights Reserved. 2
Slide 3: Zen: Snapshot
Zen: Snapshot Simulators & Defence R&D Driven Net Debt Free Listed On Training Solution Player Products Balance Sheet BSE and NSE Installed Base of Defence Customers - Largest Order Pending order Rs 352 Cr 825 Simulators* Indian Armed Forces, State Win - Rs 224 Cr book * Police Forces & Para in Dec
Slide 4: Milestones
Milestones BMP Driving Simulator Zen Combat & BMP Integrated Training Centre Missile Simulator Launch Launch Listing on NSE Company Incorporation R&D recognised by Tank Simulator Large Export Order Indian Govt Launch Win (Rs 64cr) 1993 1996 1998 2002 2004 2006 2008 2009 2011 2012 2013 2015 2016 2017
Slide 5: Management Team
Management Team Mr. Ashok Atluri (Chairman and Managing Director) Ashok is a post-graduate diploma holder in Applied Computer Science from CMC and has done his commerce graduation from Badruka College, Osmania University. He is the Co-Chairman of Defence Innovators and Industry Association. He is al
Slide 6: Management Team
Management Team Air Vice-Marshal (Retd) Arvind Verma Air Vice-Marshal Arvind had an illustrious career,spanning 37 years, with Indian Air Force. He was deeply involved in management of Geo Spatial and Geo Intelligence resources, conducting strategic war games of national and international conflict.
Slide 7: Armed Forces Training Needs
Armed Forces Training Needs Soldiers Need Continuous Training for Operational Preparedness Objective Assessment & Increasing Global Conflicts & Benchmarking of Preparedness Terrorist Activities Requiring Specialised Training Elaborate Infrastructure for Training Difficulty in Creating Scenarios Incr
Slide 8: Advantage Simulators
Advantage Simulators Faster Customized Immediate Faster Learning Curve Feedback Loop For Trainee Cost Effective Safety Significantly Safer With Lower Costs Reduced Accidents Objective assessment Comprehensive Individual & Groups Tracked Multiple Scenario Over Long Periods Training © Zen Technologies
Slide 9: Large Opportunity Size
Large Opportunity Size Indian Army training Combat Training Centre requirement of 8000 Cr Abundant Export Opportunities Handful of companies Operational Preparedness Increasingly globally Important in Europe, Middle East and Africa Large value add to the forces with simulated war- Cost of Ad
Slide 10: Zen’s Business Model
Zen’s Business Model Pioneering Defence Revenue Drivers Training Solution Simulator Products Provider Orders are of large size and have long closing cycles resulting in revenue volatility Balancing the product First mover advantage with many soldiers having trained on company’s products and
Slide 11: Competitive Edge
Competitive Edge Focused R&D driven organisation Total IPR Application R&D Driven prototyping to develop state of the art training simulators 92 Over 90 in-house researchers with specialised domain knowledge Collaboration with universities to further augment research capabilities R&D spend o
Slide 12: Zen Technologies Competitive Edge
Zen Technologies Competitive Edge Comprehensive product range More than 30 simulator products for varied training Complete in-house skills needs Comprehensive Customised Training solutions with Combat Training Centre Electronics Optics Credibility with two decade old track record Great underst
Slide 13: Moving Up The Complexity Pyramid
Moving Up The Complexity Pyramid Networked with Geo Specific Terrains Instrumented (Live Simulation) Live Firing ranges CTC : Advanced scoring and analytics Command Training Centre Real terrain & equipment Virtual Simulators Seamless Laser, Sensors, GPS and Wireless communication TacSim,
Slide 14: Simulator Life Cycle
Simulator Life Cycle -3 to 0 Years: 0-2 Years: Presales and product New product sale X specifications 8-15 Years: 3-7 Years: AMC & Upgrades: 0.75X AMC ~9% pa of sale 0.45X Simulator sale of X creates a future revenue potential of 1.2X over the product life © Zen Technologies Limited – All Rights Res
Slide 15: Simulator Product List
Simulator Product List Defence Homeland Security 81mm Mortar Integrated Simulator Medium Machine Gun Simulator 81mm Mortar Integrated Master Control Station for Live- Advanced Weapons Simulator Multi-Functional Target System Simulator Firing Ranges Air-to-Ground Firing Range Scoring
Slide 16: Zen CTC: One Stop Solution for higher Combat Readiness
Zen CTC: One Stop Solution for higher Combat Readiness Designed, developed and maintained by Zen Technologies at user site Customised Modules as per training requirements and specifications from user V L-I-V Integration VIRTUAL / SIMUL ATORS Control Center Virtual Domain: Simulators for Tanks, I
Slide 17: Zen CTC: One Stop Solution for higher Combat Readiness
Zen CTC: One Stop Solution for higher Combat Readiness Immense Helps overcome challenges Cost Saving to combat training Combat Readiness: Measurement And Much higher, Measured Recording: and ‘Scored’ Powerful scoring model Integrated, wholesome combination of all types of training systems: Live, Las
Slide 18: Facilities
Facilities Corporate Head Office 27,000 Sq. Ft. B-42 Industrial Estate, Sanath Nagar, Hyderabad Production Division 75,000 Sq. Ft. built up on 8.55 acre land Hardware Park, Maheshwaram, Hyderabad New R&D centre 25,000 Sq. Ft. Floor No.11 and 12, Signature Towers, Kondapur, Hyderabad © Zen Technologi
Slide 19: Testimonials
Testimonials Armed Forces Regiment Army Training Academy Special Forces Armed Forces “It gives me immense pleasure to “ Multi-functional target system “Zen AWeSim has been working “The Zen Advanced Weapon write about your prompt action (Zen MFTS) helps us to prepare satisfactorily under the Simulato
Slide 20: Financials
Financials Figures in INR Millions 9M 2013 2014 2015 2016 2017 FY2018 Sales 371.1 463.5 785.5 526.1 616.5 255.9 Sale of Products 335.9 432.6 715.3 425.3 486.7 109.6 Sale of Services 35.3 30.9 70.2 100.8 129.8 146.3 Gross Profit 281.2 341.5 542.1 378.7 494.5 222.6 R&D Expenses 91.65 148.55 130.7 142.
Slide 21: Balance Sheet
Balance Sheet Figures in INR Millions 2013 2014 2015 2016 2017 Sep 2017 Net Worth 1,073.2 985.6 1,110.5 1,124.4 1,196.1 1,140.6 Long-Term Borrowings 18.5 44.4 36.8 77.6 58.0 42.9 Short-Term Borrowings 102.7 124.8 348.2 295.0 21.6 227.0 Trade Payables 13.0 20.9 31.2 20.9 30.7 13.4 Fixed Assets 272.8
Slide 22: Financial Details
Financial Details Figures in INR Millions SALES SALE OF PRODUCT Figures in INR Millions 785.5 715.30 616.5 526.1 486.70 463.5 432.60 425.30 371.1 335.90 255.9 109.60 2013 2014 2015 2016 2017 9MFY18 2013 2014 2015 2016 2017 9MFY18 SALE OF SERVICES Figures in INR Millions GROSS MARGINS 146.30 87% 129.
Slide 23: Financial Details
Financial Details Figures in INR Millions Figures in INR Millions EBITDA EXCLUDING R&D R&D EXPENSES 372.7 148.55 142.96 130.70 127.24 276.94 248.2 239 91.65 205.5 75.20 70.95 2013 2014 2015 2016 2017 9M FY2018 2013 2014 2015 2016 2017 9MFY18 Figures in INR Millions Figures in INR Millions OPERATING
Slide 24: Financial Details
Financial Details Figures in INR Millions Figures in INR Millions NETWORTH LONG TERM DEBT 1,196.10 77.60 1,110.50 1,124.40 1,140.70 1,073.20 985.60 58.00 44.40 42.90 36.80 18.50 2013 2014 2015 2016 2017 H1FY18 2013 2014 2015 2016 2017 H1FY18 Figures in INR Billions Figures in INR Billions TOTAL ORDE
Slide 25: Regulatory Tailwinds
Regulatory Tailwinds Industry can suo moto come up with solutions which can solve or address the challenges faced by Indian Army For accepted solutions the Indian armed forces will give a go ahead MAKE II procedure in to develop such a system the DPP 2016 Indian armed forces will assure the ac
Slide 26: Growth Drivers
Growth Drivers 1 2 3 AMC Domestic Exports Annual Maintenance Contracts Conducive regulatory regime has Target smaller erstwhile ignored AMC CAGR of 38.5% over last 5 opened erstwhile closed single markets through tailored training years vendor business opportunities solution Simulator sales
Slide 27: For more information please contact
For more information please contact: CORPORATE INVESTOR RELATIONS Satish Choudhury Meka Siddharth (Kanav Capital) cosec@zentechnologies.com siddharth@kanavcapital.com Regd. Office: B-42, Industrial Estate, Sanath Nagar, Hyderabad, Telangana, India – 500018 Phone: +91-40-23812894, 23813294, 23814894,
Slide 28: Our Products
Our Products ZEN T-72 Tank Driving Simulator Zen T-72 DS is a holistic driving simulator that provides several training features that enable skill development from basic to advance levels:- Day & Night Driving Obstacle Negotiation Trench crossing Vertical obstacles (less than 1 mtr height)
Slide 29: Our Products
Our Products Containerized Tubular Shooting Range (CTSR) Zen Containerized Tubular Shooting Range (Zen CTSR) is a secure substitute for live firing range. It is self-contained, transportable and reduces considerably the area required for a range. Design of the tubular booth does not allow the fi
Slide 30: Our Products
Our Products ZEN TacSim Zen TacSim facilitates outdoor tactical training in all types of terrains ranging from team/subunit participation to up to a Brigade size force. Marksmanship/sniping skills, Battle Drills, tactics and other essentials required for armed interventions can all be practiced and
Slide 31: Zen CTC: One Stop Solution for higher Combat Readiness
Zen CTC: One Stop Solution for higher Combat Readiness 24/7 Combat Readiness with Zen Training Systems © Zen Technologies Limited – All Rights Reserved. 31
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