Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Investor Presentation (September 2023)
27 slides from Varroc Engineering's investor presentation, Sep 5, 2023
Slide 1: Exchange filing cover letter for investor presentation
Varroc Engineering Limited Regd. & Corp. Office L‐4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 136, Fax + 91 240 2564540 www.varroc.com Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2023-24/64 September 5, 2023 To, The Manager- Listi
Slide 2: Varroc Investor Presentation
VARROC INVESTOR PRESENTATION *Release September 2023
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: About Us
About Us Five primary business lines: Vision Create safe, smart and sustainable future mobility solutions for 08 7000+ Countries Employees ELECTRICAL - LIGHTING everyone. ELECTRONICS 36 Operating Manufacturing Facilities Mission Be the trendsetter in POLYMER METALLIC (Forging and Valves) delivering
Slide 5: Our Value Proposition
Our Value Proposition Continuous Focus on R&D Long Standing, Strong Competitive Capabilities Enhancing Strong Competitive Global company with Comprehensive Growing Customer Position in a Growing Portfolio Position in a Growing strong foothold in Solution Provider Relationships Market Segment Market
Slide 6: Our Global Footprint
Our Global Footprint Timisoara Targu Mures Changzhou (VTYC) Krakow Romania Chongqing (VTYC) Poland China Dortmund Germany Cambiano Tokyo Sumirago Japan Italy EUROPE ASIA Romania India Poland China Hanoi Vietnam Italy 08 7000+ Vietnam Germany Japan COUNTRIES EMPLOYEES Czech Republic Aurangabad Pune S
Slide 7: Global Business
Global Business With diversified product lines Business Division - Global 4W Business Division - India Electronics & Lighting O.I. Polymer Electrical-Electronics & Lighting Lighting Electronics 13 Facilities in India 10 Facilities in India 2 Manufacturing Facilities in China and 3 Manufacturing Faci
Slide 8: Our Customers
Our Customers TWO/THREE WHEELERS PASSENGER CARS COMMERCIAL VEHICLES EARTH MOVERS & OFF ROADS
Slide 9: Board & Leadership Team
Board & Leadership Team Independent Directors Arjun Jain Vidyadhar Limaye Director & CEO – Business President –Polymer Marc Szulewicz Division I Business Ex-General Manager, • Total Experience: ~11 years • Total Experience: ~35 years Foreign equipment • Previously associated with IAC • Previously as
Slide 10: Varroc Group
Varroc Group Global company with strong foothold in India Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures Overseas Subsidiaries India Subsidiaries’ & JV IMES ITALY ● Electrical and Electronics (EBU) (incl. 2W Ligh
Slide 11: Technology for Two Wheelers
Technology for Two Wheelers Electronic Fuel Injection LED Headlamps, Mirrors for ICE vehicles and BS6 Safety Sustainability catalytic converters Traction motor and controller, Power assist ISG, and e- Connected Displays, TFT Drivetrain energy management and sensor Interfaces, Electrification systems
Slide 12: Technology for Four Wheelers
Technology for Four Wheelers ADAS, Driver Monitoring Systems, Surround View Systems, LED Headlamps & LCUs, Adaptive Front Safety Lighting Systems Mirrors Safety Signature Lighting, Interior Systems, In-Cabin Sensing, Personalization Personalization Interior Mood Lighting, Center Consoles FOTA in Tel
Slide 13: Capabilities: Product Development
Capabilities: Product Development End-to-end capabilities across design, engineering, testing/validation, tooling, manufacturing and delivery Testing and Validation Project and Program Facilities CAE and Simulation Management Structural & Vibration Functional Performance DFSS/DMAIC Product Life Cycl
Slide 14: Test Facilities at Varroc Tech Center Pune
Test Facilities at Varroc Tech Center Pune Climatic Chamber EV Motor Dyno Vibration Lab EMI/EMC Test Magneto Endurance Performance Lab - Dust Test Proto Assy. Lab Electrical Motor Endurance Chemical Resistance Photometry Lab Corrosion Test Lab Test Shower Durability Switch Endurance Performance Lab
Slide 15: Unlocking Synergies across Businesses
Unlocking Synergies across Businesses Varroc's unique positioning as a systems supplier is strengthened through collaboration across its businesses. Traction Motor 4W ORVM Mirror with Gearbox Polymer + Electrical Electrical + Metallic Cross Mirror and Tailgate Business Seat with Signal Lighting Poly
Slide 16: Excelling as a Systems Supplier
Excelling as a Systems Supplier Components • Customer CTQs • Component Design • Robust analysis to predict the design meets all CTQs • Tolerance analysis to ensure DFM Motor • Material and component data Base to speed up the design Sub-Systems • Customer requirements and CTQs • Sub-system level CTQs
Slide 17: Our 2W and 3W EV Capabilities
Our 2W and 3W EV Capabilities Charger • Locally designed, developed Telematics and manufactured • Fully IoT enabled machines BMS • Complete vertical integration DC-DC converter for Electronic Manufacturing • Motor Dyno Testing System for testing 2W and 3W EV Traction motor controller Traction motor/
Slide 18: Electrical - Electronics Business
E E-MOBILITY A ADAS S SAFETY Electrical - Electronics Business (India and Romania) C CONNECTIVITY E EMISSIONS Instrument Cluster EFI-ECU Telematics Control Unit Traction Motors Stator Motors & Magneto V-CAM (ADAS) Light Control Unit Highlights Opportunity & Focus Area • Strong R&D team of 500+ engin
Slide 19: Polymer Business
L LIGHT-WEIGHTING S SAFETY Polymer Business India E EMISSIONS Highlights Opportunity & Focus Area • 120+ skilled engineers across 2 technical centers in India • Building capability for development of Green Bio-Carbon Material. • Advanced manufacturing processes (In house style studio i.e. proto • St
Slide 20: Metallic Business
E E-MOBILITY S SAFETY Metallic Business India & Italy E EMISSIONS Metallic Business Unit Highlights Opportunity & Focus Area • 3.6 Mn units of Transmission Assemblies _ Exports to Ducati, Harley • Building capability for various components required in EV • 45 Mn units Of Engine Valves_ Exposure to g
Slide 21: Lighting Business
Lighting Business India, Italy, Vietnam, Romania and China JV S SAFETY Highlights Opportunity & Focus Area • Strong 100+ engineers R&D team in India, Italy & China JV • Further Strengthen our position as Global 2 wheeler lighting player and • First to market efficient and stylish lighting in Inida I
Slide 22: Aftermarket
Aftermarket With diversified product lines 5800 Revenue Approx. Rs.5800 mn (FY2023) Revenue 4760 3680 - India (5 regional office) 2980 Geography - Asean Strong Competitive Position in a Growing Market (31+ countries) - Africa Segment - Latin America •Market Leadership In Core Product Segment FY 2020
Slide 23: Revenue Breakdown for FY22-23 for Continued Operations
Revenue Breakdown for FY22-23 for Continued Operations Business Unit Segment Aftermarket, 8.6% IMES, 3.8% Others, 3.8% PBU, 32.5% 4 Wheeler, 24.7% Lighting, 21.0% 2&3 Wheeler, MBU, 12.1% 71.5% EBU, 22.0% Geography Customer Outside India, 18.3% Bajaj, 37.5% Other Customers, 62.5% India, 81.7% Confide
Slide 24: Focus areas for Varroc
Focus areas for Varroc Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure t
Slide 25: Summary Financials of Continued Operations
Summary Financials of Continued Operations* Annual Quarter Rs. In Million FY 22 FY 23 Grwoth Rs. In Million Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY24 vs Q3 FY23 Revenue 58,442 68,631 17.4% Revenue 17,168 16,901 17,924 4.4% Gross Margin 34.1% 35.4% 130 bps Gross Margin 34.5% 36.7% 36.3% 180 bps EBITDA % 6.6% 8
Slide 26: Environmental Social Governance (ESG)
Environmental Social Governance (ESG) Renewable Energy & Power consumption • Currently >25% consumption from renewable energy; targeting to cross >50% by FY25 • 132 projects implemented for energy savings FY23 resulting in 0.24 million units of savings Recycle and waste • Recycled more than 93% of t
Slide 27: Thank You
la Voarrfroc EXCELLENCE
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