Slide 1: Exchange filing cover letter
Varroc Engineering Limited 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/2022-23/54 August 12, 2022 To, The Manager- Listing
Slide 2: Varroc Engineering Ltd Financials Results Q1FY23
Varroc Engineering Ltd Financials Results Q1FY23 July 2022
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: Content
Content 1. Highlights 2. Industry Performance 3. Financials 4. New Business Win 5. Opportunity in Mega Trends 6. Update on Discontinued Operations 7 Appendix: About Varroc Engineering Confidential
Slide 5: Highlights Q1 FY23
Highlights Q1 FY23 1. Started mass production of both Traction Motor & Traction Controller for our Anchor Customer 2. In record time(3 months) developed EFI as per the design of the customer and started supply 3. Revenue growth for the Quarter on YoY basis for Continuing Operations (excluding divest
Slide 6: India Automotive Production Number
India Automotive Production Number 6.00 6.00 8.4% 38.4% Q1 FY23 vs Q4 FY22 5.00 4.83 Q1 FY23 vs Q1 FY22 5.00 4.83 4.46 4.00 4.00 3.49 3.00 3.00 2.00 32.7% 2.00 (1.2%) 1.06 87.8% 1.06 1.08 1.00 5.9% 0.80 (15.8%) (5.7%) 1.00 0.17 0.16 0.26 0.14 0.26 0.27 0.17 0.20 0.00 0.00 2 Wheeler 3 Wheeler Passeng
Slide 7: Financials For Continued Operations
Financials For Continued Operations Rs. In Million Q1 FY23 Q4 FY22 Q1 FY22 16352 16576 Revenue* 16,352 16,576 12,010 12010 EBITDA 1,347 1009 698 EBITDA Margin 8.2% 6.1% 5.8% 8.2% Operational PBT before JV 138.3 -158.8 -181.8 6.1% 5.8% Forex Exchange (Loss)/Gain -96.8 119.2 1.3 Share of Profit/(loss)
Slide 8: Revenue Breakdown for Q1 FY23 for Continued Operations
Revenue Breakdown for Q1 FY23 for Continued Operations Business Unit Segment Aftermarket, IMES, 4.6% Others, 4.6% 9.8% MBU, 12.4% 4 Wheeler, EBU, 17.9% Lighting, 32.2% 23.9% 2&3 Wheeler, 63.2% PBU, 31.4% Geography Customer Outside India, 19.7% Bajaj, 36.2% Other Customers, India, 80.3% 63.8% Confide
Slide 9: Varroc Group Business Performance
Varroc Group Business Performance Rs. In Million Q1 FY23 Q4 FY22 Q1 FY22 India Operations Revenue* 12,721 12,493 9,540 EBITDA Margin^ 9.9% 9.7% 7.3% VLS Remaining Operations Revenue* 3,015 3,283 1,933 EBITDA Margin^ 1.7% -1.2% 5.2% Others Operations (IMES) Revenue* 746 904 741 EBITDA Margin^ 6.8% -1
Slide 10: Leverage and Cash Flow
Leverage and Cash Flow Net Debt Rs. In Billion Net Debt as on 30th June'22 30.1 11.8 9.9 5.3 27.0 26.4 26.5 Standalone plus Indian Overseas Continued VLS Discontinued Subsidiary Operations Operations Sep'21 Dec'21 Mar'22 Jun'22 Confidential
Slide 11: New Lifetime Order Win in Q1 FY23
New Lifetime Order Win in Q1 FY23 Annual Peak Revenue win of Rs.2,902 Million Lifetime Revenue win from ICE & EV Players Lifetime Revenue win of Rs.14,673 Million 9831 Annual EV, 33.0% Lifetime 4842 ICE, 67.0% 2121 781 FY 23 FY 24 Onwards Lifetime Revenue win from 2&3W and 4W Players Lifetime Revenu
Slide 12: EV a Big-Opportunity (New Products in Various BU)
EV a Big-Opportunity (New Products in Various BU) R&D efforts are directed towards ongoing trends Increased Use Stricter Environmental Electrification Autonomous Driving Connectivity Digitalization & IoT Sustainability, Reliability & of Electronics Regulation Efficiency WE OFFER WIDE RANGE OF PRODUC
Slide 13: EV Business won So Far: Highlights and Updates
EV Business won So Far: Highlights and Updates Industry product price Expected revenue in FY25 expectations based on Total @ Installed for current business based Component Investec Research (Rs per Capacity (Rs Crs) # on SOB and industry price 2W) * (Rs Crs) Traction motor 11,000 2W Controller 5,000
Slide 14: Commercial Production of Traction Motors & Controller
Commercial Production of Traction Motors & Controller
Slide 15: Rationale and Major Milestone
Rationale and Major Milestone Rationale Closure of the Divestment Significant impact on the operating performance of the Varroc Lighting expected by Sept’22 Systems business due to Covid-related disruptions from early 2020 Shareholders Approval Semiconductor supply shortages have compounded the situ
Slide 16: Financials for Discontinued Operations
Financials for Discontinued Operations Rs. In Million Q1 FY23 Q4 FY22 Q1 FY22 Operational Revenue 19,453 19,730 17,466 Operational EBITDA -248 -391 -491 Operational EBITDA % -1.3% -2.0% -2.8% Depreciation* 0 1802 1500 Operational PBT -401 -2344 -2087 MTM Forex Gain (Loss) -378 -149 -126 PBT -779 -24
Slide 17: Annexure (Overview of Varroc)
# Annexure (Overview of Varroc)
Slide 18: About Us
About Us Varroc is a Leading Indian Auto Technology Group with a Global Footprint Four primary business lines: • Founded in 1988 in Aurangabad, India by the Jain family • Successful listing on the Indian Stock Exchanges in July 2018 • Strong, long-lasting, growing customer relationships with marquee
Slide 19: Our Journey
Our Journey Varroc’s Transformation into a Global Auto Technology Group Polymer Business Acquired Forging Acquired Visteon’s global PV Signed an MoU with Candera GmbH company, IMES, Italy lighting business (now VLS) Varroc Engineering Limited to integrate HMI (Human Machine 1990 listed on the Indian
Slide 20: Symmetric Representation of Varroc (Post Divestment)
Symmetric Representation of Varroc (Post Divestment) Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures Overseas Subsidiaries India Subsidiaries’ & JV ● Varroc TYC (China JV for ● IMES ITALY ● Electrical and Electron
Slide 21: Diversified Business for Global Customers
Diversified Business for Global Customers Lighting Business Varroc’s India Business Other Asean PV & Global /Indian 2W= Lighting Polymer Electrical & Electronics Metallic IMES • Offers complete solutions in • Supplies precision forged & machined • Manufactures hot • Offers polymer solution providers
Slide 22: Board & Leadership Team
Board & Leadership Team Independent Directors Arjun Jain T. R. Srinivasan President – Electrical Group Chief Financial Officer Marc Szulewicz Business Unit and Ex-General Manager, Whole-time Director • Total Experience: ~32 years Foreign equipment division, • Total Experience: ~9 years • Previously
Slide 23: Trends @ Varroc
Trends@Varroc For us, innovation is the ability to see GREENER FOCUS ON EV change as an opportunity, not a threat. •Traction Motor and Controller •DC DC Converter •Onboard Charger Global mobility trends we consistently •Battery Management System work towards: FOCUS ON SUSTAINABLE MATERIALS FOR Green
Slide 24: Trends @ Varroc
Trends@Varroc For us, innovation is the ability to see change as an opportunity, not a threat. SAFER SMARTER & CONNECTED •Connected Clusters •EFI ECU •ADB (Adaptive Driving Beam) •TBT (Turn By Turn) Indicator •Matrix Technology in Lighting •Duel Injection Tailgate Carriers •Laser Boosted Headlamps •
Slide 25: Electrification and Efficiency Connectivity and Digitization
Electrification and Efficiency Connectivity and Digitization 48V-epowertrain platform for LCD to TFT and Connected small vehicles • Android/Car-play OS • Consists of basic units (on board charger, inverter • WiFi/BTLE and DC/DC converter) with PMSM Motor. Total • Smartphone usage • Digital Key power
Slide 26: Customer Centric Manufacturing Company
Customer Centric Manufacturing Company BD & KAM WHAT NEXT AGILITY PROXIMITY DIGITALIIZATION STRUCTURE (INNOVATION)
Slide 27: Cost Leadership in Manufacturing
Cost Leadership in Manufacturing 1 SOURCING 2 VALUE ADDITION & VALUE ENGINEERING 3 INDUSTRY 4.0 (Smart Factories)
Slide 28: Cross Business Unit Collaboration
Cross Business Unit Collaboration 4W ORVM Traction Mirror Motors ORVM With Tailgate Camera Liner System Cross BU Collaboration Spoiler Console Lighting Door Trim Swing Type Illumination Electric Footstep
Slide 29: Why Varroc?
Why Varroc? Varroc’s Vision Statement Q - High Reliability To bring leading-edge technologies to the mainstream markets • Reuse of proven designs • APQP methodology, layered process Audits, Sustenance with high quality and cost competitive solutions by delivering Audits ensures high quality & reliab
Slide 30: Thank You
Thank You Our Core Values Sincerity Humility Integrity Passion Self-Discipline To speak and actfrom To walk with everyone To do what is right To go the distance To make it al happen the heart against al odds