Slide 1: Stock exchange cover letter: Investor Presentation of the Company
Varroc Engineering Ltd. 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/2020-21/25 July 25, 2020 To, (1) The Manager – Listing
Slide 2: Varroc Engineering Limited Corporate Presentation July 2020
Varroc Engineering Limited Corporate Presentation July 2020
Slide 3: Varroc is a leading Indian auto component group with a global footprint
Varroc is a leading Indian auto component groupwith a global footprint • Founded in 1988 in Aurangabad, India by the Jain family • Successful listing on the Indian Stock Exchanges in July 2018 Leading Two primary business lines: Tier-1 manufacturer and supplier to 1. Varroc Lighting Systems (“VLS”):
Slide 4: Business Overview
Business Overview ELECTRICAL - ELECTRONICS POLYMER METALLIC (Forging and Valves) GLOBAL LIGHTING IMES (International Forging) • 2W lighting for Indian • Air Filter Assembly • Engine valves • Head Lamps • Undercarriage Links • Digital clusters • Seating Assembly • Transmission gears • Rear Lamps • Dr
Slide 5: Well Diversified Business Across Geographies, Product Groups, Customers and Segments
Well Diversified Business Across Geographies, Product Groups, Customers and Segments FY20 Consolidated Revenue: INR 112 bn (1) 100% China JV Revenue: INR 8 bn Revenue Split by Geography (1) Revenue Split by Vehicle Type(2) % % • Diversified business in developed and 1.8% India emerging markets with
Slide 6: Varroc – The Transformation into a Global Auto Component Group
Varroc – The Transformation into a Global Auto Component Group Technical Coloration with Investment in Heraeus, Acquired Forging Acquired Visteon’s manufacturing facilities in Germany for 2W Acquired 74% company, IMES, global PV lighting Brazil and Morocco catalytic stake in CarIQ, Italy, business (
Slide 7: Low Cost, Strategically Located Global Manufacturing Footprint
Low Cost, Strategically Located Global Manufacturing Footprint 43 Operating Manufacturing Facilities and 16 R&D Centers Across Asia, Europe, Africa, North and South America 26 Manufacturing Facilities for Varroc India Business Co-location with customers Poland Czech ensures cost effectiveness and Re
Slide 8: India Business: Comprehensive Solution Provider to 2W OEMs in India
India Business: Comprehensive Solution Provider to 2W OEMs in India Diversified Portfolio Catering to 2W and 3W Segments Wide range of products across Polymer, Electrical and Metallic segments; One-Stop Shop for customers enabling cross-selling 7
Slide 9: VLS: Wide Range of Lighting Product and Technology Offerings
VLS: Wide Range of Lighting Product and Technology Offerings Broad Portfolio of Lighting Technologies for PV OEMs Globally Headlamps • Full portfolio of head lamp and rear lamp providing a wide range of products Xenon LED Matrix Rear Lamps • Established presence in key emerging technologies such as
Slide 10: R&D Efforts Seek to Capitalize on Emerging Trends
R&D Efforts Seek to Capitalize on Emerging Trends Euro V / BS-VI emission norms Reduction in cost of computing power implemented by India along with the and EFI requirement make “smarter” rest of the world will make Electronic Stricter products viable Increased Use Fuel Injection (EFI) necessary on
Slide 11: Varroc — Key Strengths
Varroc — Key Strengths Comprehensive Solution Provider to OEMs Global Footprint Servicing key Auto Markets • End-to-end services across design, development and • India Business has Pan-India presence enabling delivery proximity to customers. Plants located in all major auto hubs • Wide range of prod
Slide 12: Senior Management
Varroc Leadership Tarang Jain*^ Founder & MD Managing Director • Experienced management team • Co-founded Varroc in 1988 • Independent directors with experience across industries & practices • Nearly 30 years experience in the automotive • Strong governance: Big-4 statutory and internal auditors; in
Slide 13: Financials & Share Details
Financials & Share Details
Slide 14: Financial Summary: Key Performance Indicators
Financial Summary : Key Performance Indicators Revenue Trend last 6 years and current year YTD Reported EBITDA and Reported EBITDA margin # INR Billion, % INR Billion 12 9.3% 12.0% 10 10.1% 8.2% 10.0% CAGR 10% 8.8% 120 111 8 7.2% 8.0% 7.0% 104 82 96 6 6.0% 70 4 4.0% 2 2.0% 0 0.0% FY2015 FY2016 FY201
Slide 15: Financial Summary: Income Statement Q4 & FY20
Financial Summary: Income Statement Q4 & FY20 (INR million) Q4 FY20 Q4 FY19* % Change FY20 FY19* % Change Revenue from Operations - Reported 27447.5 31534.0 -13% 111218.7 120364.7 -8% Revenue from Operations : like-for-like 27447.5 31379.0 -13% 111218.7 120282.1 -8% Other Income - Operating 479.4 22
Slide 16: Financial Summary: Segmental Break-up
Financial Summary : Segmental Break-up FY20 FY19* Revenue SBU Revenue EBITDA # Revenue EBITDA # Change YoY Revenue like-for-like EBITDA Like-for-like % EBITDA Revenue like-for-like EBITDA Like-for-like % EBITDA India Business 38,253 38,253 3,901 3,832 10.0% 42,720 42,720 4,623 4,623 10.8% -10.5% VLS
Slide 17: Financial Summary: Balance Sheet
Financial Summary : Balance Sheet Fiscal Year Ending March 31, 2018 2019 2020 Non-Current Assets Fixed Assets 31,480 45,593 52,448 Others - Non-Current Assets 6,439 8,355 7,881 Right of use of asset - 8,282 Total Non - Current Assets 37,920 53,948 68,612 Current Assets Current Investments 30 186 40
Slide 18: Shareholding Details
Shareholding Details Shareholding Pattern Top Institutional Shareholders * Retail & Others DSP Blackrock 2.4% 2.8% Institutional 12.2% Nippon 1.4% Axis MF 1.3% L&T MF 1.1% I Pru MF 1.1% Promoters 85% IIFL 1.0% Equity Share Information Bajaj Allianz Life 0.5% • Share Price (As on 23 Jul 2020)* INR 20
Slide 19: Our Core Values / Thank You
ah J) To SPEAK & ACT FROM THE HEART a = S ao THANK YOU £ oF WALK WITH EVERYONE TOGO THE DISTANCE AGAINST ALL opps TO MAKE IT HAPPEN ur Core Values