Onward Technologies Limited · NSE:ONWARDTEC
Onward Technologies — Investor Presentation (March 2021)
29 slides from Onward Technologies's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION MARCH 2021
Slide 2: Snapshot
Snapshot Legacy Execution Capabilities Team Strength 3 Decades of Experience in IT Industry 8,500+ Projects Delivered Dynamic & Experienced Leadership Founder, Mr. Harish Mehta also co- 50 Million Hours of engineering work Team founded NASSCOM Among select few specialised ER&D 1,900+ e
Slide 3: Company Overview
Company Overview Key Business Segments • Established in 1991 Onward Technologies Ltd is a leading player today in Engineering Research & Development (ER&D), Digital Transformation and IT consulting services (ITS). Engineering Research & Development (ER&D) • Headquartered at Mumbai, the company cater
Slide 4: Board of Directors
Board of Directors Harish S. Mehta - Executive Chairman • As Founder of Onward Group, Mr. Harish Mehta has led, grown, and mentored two generations of this technology company. He was the Deputy Chairman and Managing Director of Onward Novell Software (I) Ltd. (1993-2005), a 50:50 JV between Onward G
Slide 5: Board of Directors
Board of Directors Parish Meghani - Director Mr. Parish Meghani is actively involved in three areas; an auto-ancillary manufacturing business, a real estate business and equity investments. He has prior experience of running an IT firm that specialized in data security products. He has done his Prod
Slide 6: Key Management Personnel
Key Management Personnel Vignesh Kumar - EVP and Head Sales (India & Europe) V Sankar - Sr. Vice President & Regional Business Head Experience: ~28 years Experience: ~30 years Education: B.E., M.B.A. Education: University of Madras Pratish Mehta - EVP - USA Operations & Manish Soni - Sr. Vice Presid
Slide 7: Key Milestones
Key Milestones - Mr Harish Mehta founded Onward Technologies as a first generation entrepreneur 1991 - Mr Mehta also formed, an independent 50:50 Joint Venture with Novell Inc (Onward-Novell Private Ltd) which he managed till 2005. - (Novell -USA was the world’s second largest personal software comp
Slide 8: Geographical Presence
Geographical Presence Cleveland Chicago Troy London Amsterdam Frankfurt FY20 Revenue Breakup – Client Location Pune USA Mumbai 41% Bengaluru Chennai India 50% Europe UK 4% 5% Large Customers with more than 10 Years of Association 7 Large Customers with more than 5 Years of Association 10 8
Slide 9: Key Strengths
Key Strengths Proven expertise in delivering mechanical engineering and digital transformation services to global 2000 companies Ability to ramp-up on-demand across the globe on a short notice Flexible business and engagement model to provide agility and cost effectiveness Right size organiz
Slide 10: Strategic Transformation
Strategic Transformation FY2020 TARGET FY2025 Top 10 Top 10 Customers Customers (47%) (70%) Top 11-50 Customers Top 11-50 Customers (37%) (20%) Remaining Customers Remaining Customers (16%) (10%) ITS 27% Digital ER&D Transfor ER&D 73% mation 50% 50% Over its 3-decade legacy, Onward Tech has develo
Slide 11: Future Growth Strategy
Future Growth Strategy New Capabilities Focus • Focus on newly established capabilities in • Clear strategy for winning larger deals from existing Digital Transformation, Industrial IoT, and customers and new customers in target markets: (North Industry 4.0 America, Europe & India) • Build capabilit
Slide 12: Business Overview
BUSINESS OVERVIEW caleheeteed Trragination, Delivered to c — ————— = : ‘ . — ————“ Your Imagination. Delivered to Perfection™ 12
Slide 13: Services Offered
Services Offered • Onward is in an enviable position since very few service providers can seamlessly complement the engineering services and IT services and provide the converging digital platform solutions. • Customers also prefer to build a two-way relationship with a partner who has the capabilit
Slide 14: Engineering Research & Development (ER&D)
Engineering Research & Development (ER&D) • Designing and developing outstanding new engineering products requires expertise across Product Design & Development Manufacturing Engineering multiple domains. • The evolution of a product happens over time with • New Product Strategy • Layout Development
Slide 15: Digital Transformation
Digital Transformation • Digital transformation help small and large organizations maximize the value of their data, unearth insights, build Maximizing value by achieving the right plans and respond in real-time to customer demand. equilibrium between costs, quality and safety • Onward digital trans
Slide 16: Case Studies
Case Studies Engineering and digital services for one World’s largest off highway and construction Transportation and Leading Transportation company of the World’s largest off-highway and equipment manufacturer Diesel Locomotive Company construction equipment manufacturers • With deep domain experts
Slide 17: Industry Overview
INDUSTRY OVERVIEW etinaccs ts four imagination, Delivered to Perfection? = — =e . 4 - ——_ SEE x - Your Imagination. Delivered to Perfection™ 17
Slide 18: Engineering R&D Service Industry
Engineering R&D Service Industry • In a 2019 report by Zinnov, the market addressed by ER&D Service Providers stands at ~USD 80 Billion, at 8% Y-o-Y growth USD 2019 Global ER&D Spend 1.4 Tn Expected future CAGR of 7% • The study analyzed the global Engineering R&D (ER&D) space and estimated that the
Slide 19: Digital Transformation
Digital Transformation • The covid-19 pandemic has accelerated the demand for hi-tech by shriveling human activity into a world of apps. The explosion in online activity has galvanized massive cloud-led adoption, digital adoption, and transformation of the core. Global digital penetration has been r
Slide 20: Opportunities
Opportunities R&D Opportunities we are uniquely positioned to capture… R&D • Design Automation • Time series analysis • Simulation – CFD/FEA • NPI MEG • AR/VR • Simulation MEG • Digital twin study • Inventory Management • Cobots Sales Business Process • Demand Forecast • Process Automation using RPA
Slide 21: Financial Overview
FINANCIAL OVERVIEW “cheeterd ‘Your imagination, Delivered to Perfection?” | Your Imagination. Delivered to Perfection™ 21
Slide 22: Historical Standalone Profit & Loss
Historical Standalone Profit & Loss Particulars (INR Mn) FY18 FY19 FY20 9M-FY21 Operational Income 1,066 1,182 1,221 839 Total Expenses 1,030 1,032 1,054 717 EBITDA 36 150 167 122 EBITDA Margins (%) 3.38% 12.69% 13.68% 14.54% Other Income 65 50 67 56 Depreciation 46 48 91 63 Finance Costs 22 21 32 1
Slide 23: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY19 FY20 H1-FY21 Particulars (INR Mn) FY19 FY20 H1-FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 75 62 154 Share Capital 158 160 162 Intangible assets 56 40 33 Other Equity 454 526 556 Intangible ass
Slide 24: Historical Consolidated Profit & Loss
Historical Consolidated Profit & Loss Particulars (INR Mn) FY18 FY19 FY20 9M-FY21 Operational Income 2,445 2,610 2,715 1,740 Total Expenses 2,333 2,386 2,482 1,606 EBITDA 112 224 233 134 EBITDA Margins (%) 4.58% 8.58% 8.58% 7.70% Other Income 48 12 11 33 Depreciation 55 57 113 79 Finance Costs 30 27
Slide 25: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY19 FY20 H1-FY21 Particulars (INR Mn) FY19 FY20 H1-FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 98 80 168 Share Capital 158 160 162 Intangible assets 57 41 33 Other Equity 452 520 528 Intangible a
Slide 26: Consolidated Financial Highlights
Consolidated Financial Highlights Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 224 233 2,610 2,715 101 2,445 8.58% 8.58% 7.70% 3.87% 2.99% 1,740 67 134 62 112 52 2.74% 4.58% 2.28% FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 EBITDA EBITDA Margin PAT PAT Margin ROE and ROCE (
Slide 27: Key Metrics (Consolidated)
Key Metrics (Consolidated) Revenue by Business Revenue by Industry Revenue by Contract Type 4% 4% 5% 7% 33% 31% 27% 29% 26% 22% 24% 34% 27% 28% 31% 38% 26% 22% 26% 27% 69% 73% 71% 74% 78% 76% 67% 69% 42% 43% 31% 36% FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 FY18 FY19 FY20 9M-FY21 ER&D ITS Indust
Slide 28: Capital Market Data
Capital Market Data 80% 60% 40% 20% 0% -20% -40% -60% Jan- 20 Feb- 20 Mar- 20 Apr- 20 May- 20 Jun- 20 Jul- 20 Aug- 20 Sep- 20 Oct- 20 Nov- 20 Dec- 20 Onward Sensex Shareholding Pattern (as on 31st December 2020) Price Data (As of 31st December 2020)* Face Value 10.00 Market Price 107.4 Public 52 Wee
Slide 29: Disclaimer
Disclaimer Onward Technologies Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of the information or opinions contained in this presentation. Such information and opinions are in all e
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