Black Box Limited · NSE:BBOX
Black Box — Q4 & FY22 Earnings Presentation
58 slides from Black Box's earnings presentation, Jun 10, 2022
Slide 1: Submission of Investor Presentation cover letter
Telephone: +91 22 6661 7272 | Email: marketing.india@blackbox.com BBOX/SD/SE/2022/74 June 10, 2022 Corporate Relationship Department Corporate Relationship Department Bombay Stock Exchange Limited National Stock Exchange Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Fort,
Slide 2: Black Box Limited Investor Presentation Q4 & FY22
Black Box Limited INVESTOR PRESENTATION Q4 & FY22 TRANSFORM SUSTAIN & GROW
Slide 3: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Black Box Limited (Formerly AGC Networks Limited), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe fo
Slide 4: One name, one brand, one language
The integration of the erstwhile NASDAQ listed Black Box Corporation & AGC is now Networks which began in 2019 is now complete ONE NAME. ONE BRAND. ONE LANGUAGE Today, we are bigger and better — with a combined workforce of 3,800+ highly skilled and talented professionals who have helped us to... Ex
Slide 5: Q4 & FY22 Highlights
Q4 & FY22 HIGHLIGHTS TRANSFORM SUSTAIN & GROW 4
Slide 6: Q4 & FY22 Highlights
Q4 & FY22 HIGHLIGHTS In Rs. Crores Q4 FY22 1,387 1,442 5,370 ▪ Annual revenue growth at 15% with continued growth on 1,221 4,674 quarter on quarter basis. The revenue growth is on account of Revenue strong order book reflected in new customer bookings each quarter Q4FY21* Q3FY22 Q4FY22 FY21* FY22 ▪
Slide 7: Robust Balance Sheet
ROBUST BALANCE SHEET Total Borrowings Net-Worth In Rs. Crores In Rs. Crores 462 (19) 260 73 207 (286) 274 188 98 176 117 78 Mar-20 Repayment Mar-21 Addition Mar-22 (176) Mar-20 Profit for OCI Warrants Mar-21 Profit for OCI Mar-22 the year Subscription the year Money ▪ Additional debt drawn in FY22 t
Slide 8: Management Commentary
MANAGEMENT COMMENTARY Commenting on the results and performance Mr. Sanjeev Verma, Whole Time Director, Black Box said, “Despite a challenging year, I am pleased to report a 15% increase in organic revenue due to the company's healthy order book and strong execution capabilities. The overall busines
Slide 9: Deal Wins of $1 Million+ During the Quarter
DEAL WINS OF $1 MILLION+ DURING THE QUARTER Transaction Value Clients $44.8 Mn Data Center and In-Building 5G/OnGo solutions for an American multinational technology conglomerate $5.34 Mn Enterprise Networking & Digital Workplace solutions for an American biotechnology corporation $6.16 Mn Digital W
Slide 10: Q4 & FY22 – Consolidated P&L
Q4 & FY22 – CONSOLIDATED P&L Particulars (Rs. Crs. ) Q4FY22 Q3FY22 Q2FY22 Q1FY22 Q4FY21* FY22 FY21* Revenue from Operations 1,442 1,387 1,345 1,195 1,221 5,370 4,674 Gross Profit 415 396 383 356 401 1,549 1,497 Gross Profit Margin 28.7% 28.6% 28.4% 29.8% 32.8% 28.9% 32.0% Gain on foreign currency tr
Slide 11: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs in Cr) 31st March 2022 31st March 2021 Particulars (Rs in Cr) 31st March 2022 31st March 2021 Non-Current Assets EQUITY AND LIABILITIES Equity Property, Plant And Equipment 190 164 Equity Share Capital 33 33 Right Of Use Asset 194 146 Other Equity 228 174 G
Slide 12: Consolidated Cash Flows
CONSOLIDATED CASH FLOWS Particulars (Rs in Cr) 31st March 2022 31st March 2021 Operating profit before working capital changes 253 329 Changes in working capital (61) 35 Cash generated from operations 192 364 Direct taxes paid (net of refund) (21) 49 Net Cash from Operating Activities (A) 171 412 Ne
Slide 13: Medium Term Targets
MEDIUM TERM TARGETS TRANSFORM SUSTAIN & GROW 12
Slide 14: Medium-Term Targets
MEDIUM-TERM TARGETS Growth Drivers FY20 FY21 FY24 REVENUE 4,994 4,674 7,000 to 7,500 ✓ Increasing exiting customers & (Rs. Crs) market penetration + Addition of new clients Normalised ✓ Inorganic growth opportunities EBITDA Margin 6.6% 7.5% 9.0% - 10.0% (%) ✓ Optimize operational efficiencies ✓ Opti
Slide 15: Business Overview
BUSINESS OVERVIEW TRANSFORM SUSTAIN & GROW 14
Slide 16: Snapshot
SNAPSHOT Who Are We Black Box® is a trusted IT solutions provider delivering cutting-edge technology solutions and world-class consulting services to businesses around Rs 5,370 Crs 8,000+ 250+ the globe FY22 Revenue Global Customers Fortune 500 Companies What We Do We deliver technology solutions fo
Slide 17: AGC & Black Box – Moving Forward as One
AGC & BLACK BOX – MOVING FORWARD AS ONE Tata Telecom Tata exits & Avaya AGC goes global and forms JV with Global Connect is expands into North AT&T in India formed America & MEA AGC founded as AT&T exits, Tata- Avaya exits, Essar Forms Multi-Alliances Tata Telecom Avaya JV takes enters and AGC provi
Slide 18: Our Board of Directors
OUR BOARD OF DIRECTORS Sanjeev Verma Sujay Sheth Neha Nagpal Whole time Director Chairman – Independent Independent Director Director Experience: 24 years Experience: 25 years Experience: 13 years Deepak Kumar Bansal Dilip Thakkar Anshuman Ruia Executive Director & Independent Director Executive Dir
Slide 19: Our Management Team
OUR MANAGEMENT TEAM Sanjeev Verma Deepak Kumar Bansal Rick Gannon President Executive Director & Head of GSI Business Global CFO Experience: 24 years Experience: 24 years Experience: 20 years Lisa Davidson Mahua Mukherjee Todd Oseth Head of HR North America Head of HR APAC, India & Senior VP, GM, Te
Slide 20: Improving Financial Flexibility
IMPROVING FINANCIAL FLEXIBILITY Promoter Funding Balance Sheet Strength Credit Rating • In May 2022, the final warrant tranche of • Transformation at Black box has improved • CRISIL has assigned BBB/Stable rating Rs. 37 crores is received. With this, Rs the financial strength (Investment Grade) to t
Slide 21: Inorganic Strategy
INORGANIC STRATEGY TRANSFORM SUSTAIN & GROW 20
Slide 22: Inorganic Growth Strategy
INORGANIC GROWTH STRATEGY Identify Businesses that provides expansion through scale and revenues currently operating with sub-optimal margin profile ✓ Capability expansion in areas like Cloud, Data center, Cyber Security, IOT ✓ Geographic expansion within US and Europe and APAC Complementary to exis
Slide 23: Acquisition History
ACQUISITION HISTORY Company Acquired Rationale ▪ Provides a wide range of solutions/Service Offerings largely classified into Cyber Security, Enterprise Networking, Automation and Consulting Services Dragonfly Technologies Pty Ltd (Sept’21) ▪ Rationale is to strengthen its presence in Australia and
Slide 24: Improved Service Offerings & Scale via Acquisition of Black Box
IMPROVED SERVICE OFFERINGS & SCALE VIA ACQUISITION OF BLACK BOX Focus on Global Solutions Integration (GSI) + Technology Product Solutions Focus on Global Solutions Integration Business (GSI) business (TPS) Unified Communications & Collaboration Connected Buildings Data Center & Edge IT 5G / OnGo Da
Slide 25: Black Box Transformation Since Acquisition
BLACK BOX TRANSFORMATION SINCE ACQUISITION Revenue# (in Mn $) & Gross Margins Adjusted# EBITDA (in Mn $) & EBITDA Margins 27.7% 27.6% 26.7% 28.1% 30.0% 29.9% 29.3% 30.1% 4.5% 5.4% 6.4% 7.0% 5.0% 7.1% 7.0% 6.1% Covid-19 impact Covid-19 impact $148 $146 $146 $157 $150 $10.4 $11.0 $144 $136 $9.3 $9.6 $
Slide 26: Global Footprint
GLOBAL FOOTPRINT Seamlessly transforming technology across enterprises economically, uniformly, and with scale at a global level Across 6 Regions and 30+ Countries… Europe Austria Belgium Denmark Finland France Germany Italy Ireland Netherlands Asia-Pacific North America Norway Australia Canada Spai
Slide 27: Organic Growth Opportunities
ORGANIC GROWTH OPPORTUNITIES Investment in talent acquisition Investment in refreshing the sales team, Cloud based Offerings hiring of partner managers and solution Launching of new cloud-based offerings architects for new offerings 05 01 Focus on Organic Growth Cross Selling Data Center Opportuniti
Slide 28: Our Endeavor
OUR ENDEAVOR Technology Consulting Global SI/IT ICT Solution Value Added Product Distributors Companies Services Integrators Resellers Companies Our endeavor is to be leading Technology Solution Integrator Gross Gross Gross Gross Gross Gross Margin Margin Margin Margin Margin Margin 50%+ 40-50% 30-4
Slide 29: Way Forward
WAY FORWARD Manage Organizational Improve Operational Risks and Compliance Efficiencies Adherence Increase Market Deliver Return on Penetration Technology Investments Optimize Operating Costs Accelerate Revenue Growth To become a Leading IT Solution Partner for Global Clients 28
Slide 30: Industry Overview
INDUSTRY OVERVIEW TRANSFORM SUSTAIN & GROW 29
Slide 31: Today Tomorrow Defined by Technology
DEFINED BY TECHNOLOGY Spending on communications services -Unified Communications technology reached $1.4 tr in 2020 The Global Manage Services market is expected to grow from USD 223.0 bn in 2020 to USD 329.1 bn by 2025 at a CAGR of 8.1% 3X Growth in Hybrid Cloud Adoption by enterprises APAC offers
Slide 32: Growth Drivers
GROWTH DRIVERS Based on various sources such as Gartner, GMM Insights etc below are the management estimates Industry Size (USD Bn) Drivers Unified Communications 8% 51 and Collaboration 30 ▪ Widespread global network of 4G connectivity ▪ Ongoing investments for early commercialization of 5G network
Slide 33: Business Overview
BUSINESS OVERVIEW TRANSFORM SUSTAIN & GROW 32
Slide 34: Product Solutions & Services Offerings
PRODUCT SOLUTIONS & SERVICES OFFERINGS Global Solutions Integration Business (GSI) Technology Product Solutions (TPS) Delivers digital transformation solutions that helps to design, Markets, sells, and distributes IT infrastructure products deploy, manage and strategize IT operations primarily throu
Slide 35: Key Pillars in GSI Portfolio
KEY PILLARS IN GSI PORTFOLIO Connected Buildings Digital Workplace Customer Experience Solutions Global Multisite Deployments Premise & Hybrid UC&C Omnichannel Experience Structured Cabling Managed UCaaS (Cloud) Digital First/AI Digital Transformation Implementation Premise to Cloud Upgrade Resilien
Slide 36: Case Study – Digital Infrastructure
CASE STUDY – DIGITAL INFRASTRUCTURE Contact Center Infrastructure Upgrade for an Indian Logistics Company THE SOLUTION BENEFIT THE CLIENT THE CHALLENGE Black Box demonstrated the benefits of a A future-ready solution with low. Our client is an Indian Logistics The client decided to upgrade their cen
Slide 37: Case Study – Unified Communications & Collaboration
CASE STUDY – UNIFIED COMMUNICATIONS & COLLABORATION (UCC) Seamless Migration for Voice Technology Service THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT This healthcare provider is The client was utilizing PRI, an Black Box provided an up-to-date voice The new centralized SIP service gave acknowledge
Slide 38: Case Study – Data Center & Enterprise Networking and 5G / OnGo
CASE STUDY – DATA CENTER & ENTERPRISE NETWORKING AND 5G / ONGO Ubiquitous, 5G-Ready Wireless Coverage THE SOLUTION BENEFIT THE CLIENT THE CHALLENGE Black Box has, so far, designed and installed Future-ready and 5G capable, the This large, university-based The client needs to provide mission- the Com
Slide 39: Case Study – Cybersecurity
CASE STUDY – CYBERSECURITY Cybersecurity for banking industry THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT Banking Industry client required • Understood Business and its critical • IT Policy and Standard SOP/Baseline • Security Policy and Guidelines not to meet RBI guidelines meeting RBI need depen
Slide 40: Strong Relationship with Global Tech Partners
STRONG RELATIONSHIP WITH GLOBAL TECH PARTNERS *All logos are the property of the respective owners 39
Slide 41: Technology Product Solutions
TECHNOLOGY PRODUCT SOLUTIONS TPS provides connectivity that enables businesses to better visualize and analyse information ✓ Strong brand awareness with 40+ years of history with sizable installed base ✓ We are a market leader in control room designs and deployments with reputation for being the bes
Slide 42: Technology Product Solutions Portfolio
TECHNOLOGY PRODUCT SOLUTIONS PORTFOLIO KVM IoT A/V • Extenders • Multiviewers • BLE Beacons & • Gateways & Data • Adapters • Extenders • KVM Manager • Secure ID Cards Acquisition • AV-over-IP • Repeaters • LCD Console • Single-User Switches • Connected Buildings • Smart Sensors • Control Systems • S
Slide 43: Our Product Partners
OUR PRODUCT PARTNERS Leveraging our Relationships with Global Distributors 42
Slide 44: Case Study - KVM
CASE STUDY - KVM Broadcaster Builds Studios on Black Box Emerald KVM-over-IP Platform THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT A broadcaster teamed with a Customer’s desire was to enable flexible The Black Box Emerald KVM-over-IP The complete Emerald solution global systems integrator to plan I
Slide 45: Case Study – KVM
CASE STUDY – KVM KVM Solutions deployed for the Defence Sector in the NORDICS THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT A solutions integrator and Black The customer needed a software solution The customer already had KVM extender Customer can now secure 44 PCs in an Box customer involved in sec
Slide 46: Case Study – Networking
CASE STUDY – NETWORKING Environmental Monitoring for a Railway System THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT The client is one of the oldest Replace the railway’s legacy remote To keep the railway's network operating The system integrates with other Ministry of Transportation and environmenta
Slide 47: Our Customers
OUR CUSTOMERS Bank of America. ‘intel) ja | Ss ie Hewlett Packard SuNTRUST Enterprise Cleveland Clinic a TATA "TATA CONSULTANCY SERVICES Cayex Genentech etisalat & Infosys “Dienep fh Trinity Health rece z <*> epF ENERGY Bloomberg -4—
Slide 48: Entrenched Customer Relationship
ENTRENCHED CUSTOMER RELATIONSHIP Stable Long Tenure of Relationship* Technology Healthcare Manufacturing Utilities 14% 21% 28% 30% 35% 8 of the Fortune 100 4 of the 6 Largest 7 of the 10 Largest 3 of the Fortune 50 Largest 22.7 Tech Companies Hospitals 21.4 22.0 Global Manufacturers US Utility Compa
Slide 49: Well Diversified Global Business Model – FY22
WELL DIVERSIFIED GLOBAL BUSINESS MODEL – FY22 Revenue by Geography Revenue by Industry India, 7% Construction, 2% Government, 3% Europe, 8% Others, 12% MEA, 3% Financial Services, 22% Retail, 7% APAC, 6% Latin America, 1% Business Services, Technology, 16% 11% North America, 75% Manufacturing, 5% Di
Slide 50: Organization Sized to Scale Growth
ORGANIZATION SIZED TO SCALE GROWTH Black Box Skills Across Talent Acquisition: Digital Workflow 2,686 ▪ Ratio-centric manpower including sales, delivery and services team – capable and technically competent to Connected Building 517 achieve growth Data Center 337 ▪ Dedicated talent acquisition team
Slide 51: Historical Financial Highlights
HISTORICAL FINANCIAL HIGHLIGHTS TRANSFORM SUSTAIN & GROW 50
Slide 52: Improving Financials Over Last 4 Years
IMPROVING FINANCIALS OVER LAST 4 YEARS Particulars (Rs. Crs. ) FY18 FY19 FY20* FY21 FY22 Revenue from Operations 733 1,853 4,994 4,674 5,370 Gross Profit 204 496 1,521 1,497 1,549 Gross Profit Margin 27.8% 26.8% 30.4% 32.0% 28.9% Total Other Expenses 170 450 1,192 1,145 1,289 EBITDA 33 47 328 352 26
Slide 53: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Mar-22 Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Mar-22 EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant And Equipment 23 156 164 164 190 Equity Share Capital 28 30 30 33 33 Right Of Use Asset -
Slide 54: Summary of Consolidated Cash Flows
SUMMARY OF CONSOLIDATED CASH FLOWS Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20** Mar-21 Mar-22 Operating profit before working capital changes 24 (33) 346 329 253 Changes in working capital 18 (13) 817 35 (61) Cash generated from operations 42 (46) 1,163 364 192 Direct taxes paid (net of refund) 10
Slide 55: Disclosure of Financial Restatement
DISCLOSURE OF FINANCIAL RESTATEMENT A ▪ During the financial year 2018-19, BBX, step-down subsidiary of Holding Company, had entered into a credit agreement with Pathlight Capital Fund LLP (the ‘lender’) to avail credit facility amounting to Rs. 692.57 Crores (USD 97.50 Million) for BBC. Further, as
Slide 56: Impact of Financial Restatement
IMPACT OF FINANCIAL RESTATEMENT Balance Sheet Statement 31-Mar-20 31-Mar-20 Particulars (in Rs. Crs) (Before Adjustments (Restated) Restatement) Profit & Loss Statement ASSETS Non-current assets Particulars (In Rs. Crs) FY21 FY20 Property, plant and equipment 62.75 101.62 164.37 PBT before restateme
Slide 57: Annexure – Links to Stock Exchange Intimations
Annexure – Links to Stock Exchange Intimations Particulars Links CRISIL Ratings Rationale Press Release Press Release 4 Press Release 3 Black Box Corporation Acquisition Press Release 2 Press Release 1 Fujisoft Technologies UAE Press Release Pyrios Pty Ltd (Australia) Press Release 2 Pyrios Pty Ltd
Slide 58: Contact Us
CONTACT US Company : Investor Relations Advisors : Strategic Growth Advisors Private Limited Black Box Limited CIN: U74140MH2010PTC204285 CIN: L32200MH1986PLC040652 Rahul Agarwal / Ami Parekh Deepak Bansal rahul.agarwal@sgapl.net / ami.parekh@sgapl.net deepak.bansal@blackbox.com +91 982143 8864 / +9