Slide 1: Result Update Presentation Q3 & 9M FY20
Salzer Electronics Limited EEIZE'" Result Update Presentation Q3 & 9M FY20
Slide 2: Disclaimer
EEIZEI“ This presentation has been prepared by Salzer Electronics Limited (the ”Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any c
Slide 3: Agenda
salzar'l — Financial Highlights — Company Overview — Business Overview — Way Ahead
Slide 4: Financial Highlights
Slide 5: Management commentary on results
EEIZEI“ Commenting on the results, Mr. Rajesh Doraiswamy, Joint Managing Director, said : ”I am happy to share that during the 9M FY20 we have registered a 7.4% Y-o-Y growth in our revenues. This growth was mainly driven by demand in our switchgear business segment mainly in Export markets. The incr
Slide 6: Key developments and Kaycee acquisition
salzar' I i ~-——————————————————————————————————’ I I I Salzer Electronics - an approved vendor for Schneider - was awarded the Best Collaborative Supplier for 2019 I I I I I In line with the focus on increasing product offerings and expanding footprint into newer segments along with I I access to a
Slide 7: Revenue, EBITDA, PAT (Rs. Crore)
EEIZEI“ Revenue, EBITDA, PAT (Rs. Crore) +Revenue -I-EB|TDA -I-PAT 180 - - 30.0 162.1 160 _ 155.0 - 25.0 140 _ 134.7 137-8 134.7 126.8 126.5 120 _ 1046 ' . 16.1 16.9 16.7 175 16.7 _ 20'0 100 - + + + fl - 15.0 80 - 60 - 8.4 - 10.0 40 — 41 5.8 5.3 43 4.5 5-6 5.4 5.8 5.9 5.5 20 - 0 I I I I I I I I I I 0
Slide 8: Q3 FY20 Financial Highlights
__________________________ ‘ [Q3 FY20 Financial Highlights EEIZEI“ Rs. in Crore Standalone Consolidated Q3 FY20 Q3 FY19 Y-o-Y % Q2 FY20 Q3 FY20 Net Revenue 134.7 143.5 (6.1%) 137.8 140.4 Raw Materials 96.3 106.6 101.8 99.1 Employee Cost 7.2 7.6 6.2 8.4 Other Expenses 14.5 13.2 12.3 15.8 Total Expend
Slide 9: Q3 FY20 Revenue Breakup - Business Verticals
__________________________ ‘ lrQ3 FY20 Revenue Breakup — Business Verticals I EEIZEF Q3 FY19 I Q3 FY20 I I I : Industrial Industrial I Switchgear, Switchgear, | 5°'°% 44.0% I I I I I I I I I : Energy Energy | Management , Manigggent. Wire & Cable, I 22% . 0 0 48;”) : Building Segment, Building Segme
Slide 10: Q3 revenue breakup by geography
EEIZEI“. Q3 FY19 Q3 FY20 Middle East, Asia (Exclu. India), Middle East, 3_7% Asia (Exclu. India), 1.5% 7.7% 7.3% U.S, 1.9% U.S, 3.5% Europe, 4.9% Europe, 5.9% India, 84.4% 10
Slide 11: 9M FY20 Financial Highlights
EEIZEI“ Rs. in Crore 9M FY20 9M FY19 Net Revenue 434.6 404.7 7.4% Raw Material Expenses 324.6 301.2 Employee Expenses 19.7 17.5 Other Expenses 39.4 39.2 Total Expenditure 383.8 357.9 EBITDA 50.9 46.8 8.8% EBITDA Margin (%) 11.71% 11.56% 15 bps Other Income 1.0 0.4 Depreciation 10.8 9.7 Interest/ Fin
Slide 12: 9M FY20 Revenue Breakup - Business Verticals
__________________________ ‘ I9M FY20 Revenue Breakup — Business Verticals I EEIZEF 9M FY19 I 9M FY20 I I I I : Industrial Industrial I Switchgear, Switchgear, I 443% 41.8% I I I I I I I I I I Energy Wire & Cable, | Energy Management , 48.5% I Management , 2.0% : 2.0% Wire & Cable, I Building Segmen
Slide 13: 9M revenue breakup by geography
Bali: 9M FY19 | 9M FY20 | Middle Asia (Exclu. Middle Asia (Exclu. India), East, 1.7% India), 5.4% East, 3.4% 6.9% U.S, 2.4% Europe, 4.6% 84.4%: 0 83.1% 13
Slide 14: Balance Sheet as on 30th Sept'19
__________________________ ‘ I Balance Sheet as on 30th Sept’19 : EEIZEP As on 30th As on 315t As on 30th As on 30th As on 315t As on 30th Rs. Crore Rs. Crore , , , Sept’ 19 Mar’ 19 Sept’ 18 Sept 19 Mar 19 Sept 18 Shareholder’s Funds 295.2 287.2 275.6 Non-current assets 239-1 215-9 213-4 Share capit
Slide 15: Annual revenue, EBITDA, net profit and networth
salzer' I Revenue (Rs. Crore) I EBITDA (Rs. Crore) / Margins (%) I I 70 - - 13% 5593 E | 60 _ o 11.9% 12.0% 442.8 I 50 - 12% 361.1 385.0 E [] ' I 40 _ - 11% [] I 30 ' — 10% I 20 - _ 0 I 10 — 96 I I I I I I O I I I 8% FY16 FY17 FY18 FY19 I FY15 FY17 FY18 FY19 . I Net Profit (Rs. Crore) | Networth as
Slide 16: Company Overview
I \ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Company Overview I I I I I I I I I I I I I I \s J
Slide 17: Company Overview
[Company Overview I EEIZEI“ Leading player offering total and customized electrical solutions I Presence in Industrial Switchgears, Wires & Cables and Energy management business I Largest manufacturer of Cam Operated Rotary Switches — Market leader with 25% share —_ Extensive Product portfolio acros
Slide 18: Company history and milestones
EEIZEI“ I Unit | (Coimbatore) — manufacture I Leading player offering total and contactors, relays, panels, energy customized electrical solutions savers I More than 15 different products I Starting of long term association with I 2,000 employees L&T I 4 manufacturing units I Technical collaboration
Slide 19: Professional Management
__________________________‘ [Professional Management I EEJZEI-II .\—————————————————————————— Qualified Electrical Engineer and Technocrat Entrepreneur with over 2 decades of experience I Vast Experience in Foreign Collaboration & wide global contacts I Electrical Engineer, India; Post Graduate in B
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Slide 21: Product portfolio by vertical
EEIZEI“ Industrial Switch Gear Products Copper Products I Transformers Wires & Cables I Terminal Blocks Flexible Bus Bars I RotarySwitches Enamelled Wires I Isolators Bunched Conductors I General Purpose relays Tinned Copper Wires I Wiring Ducts I MPCB’s I Contactors&OLR’s I Control Panels I Wire Ha
Slide 22: In-house manufacturing and R&D enables customization
Terminal Socket Panels L J ln-house manufacturing and R&D enables superior customization of products
Slide 23: Key Strengths
__________________________‘ HKey Strengths l EEIZEF‘ .\—————————————————————————— Wide Distribution Network Strong CUStomer REIatiOHShips I Wide distribution network — international and domestic I Strong customer relationships across globe I Tie up with L&T— access to over 350 dealers Complete Backw
Slide 24: Product range
Rota ry Switch Toroidal Transformers I Wiring Accessories Wires & Cables I Enamelled Copper Contactors & Relays Isolators (Dis-connectors) Flexible Bus Bars Wires Panel Assembly Terminals Bunched Conductors I Fine Enamelled Lighting Energy Wiring Ducts Tinned Wires Copper Wires Savers MPCB I Polyest
Slide 25: In-house process capabilities
__________________________ ‘ Ir...With ln-house process capabilities... I EEIZEF ' FullfledgedTypetestinglaboratory ln-house tool room facility for manufacturing and — Loads up to 500Amps servicing of Moulds and press tools — Environmental test chamber for humidity test — CNC Wire Cut Machines and S
Slide 26: R&D and continuous product innovation
EEIZEI“ R&D expenses (Rs crore) - In-house R&D Center — More than 35 engineers 8.5 7.8 - Recognized by Department of Science, Govt of India I Patented Rota ry switches I Five patents in process 4.3 - Manual Single-Phase Starter with no voltage tripping, Energy Saver System for Street Lighting, Integ
Slide 27: Certifications across product portfolio
f """"""""""""" ‘ EEIZEI“ @m ISO 9001 ISO 14001 ISO 18001 cg CB C8 cenification by IE CE Certification UL Certification CB certification V éflflAGEME’VAm RoHS COMPLIANT 5% g : 0 us ’ RoHS Intertek ISO 1 6949 Intertek Semko approval CSA Certification CERTIFIED Across entire product portfolio 27
Slide 28: Blue Chip Customers
[Blue Chip Customers I SEIZEF Ihleo sc'gflfi'flfif LARSEN & TDUBRO 5m lth 5 It's all about Imagineering mm mm uropa :”’:"¥:\r+ir:lr \ C(3lt1f)(‘)l1r‘l1tf~: ‘ “ ‘ ‘ bringing technology to lite u I! n ALSTGM OTIS Ahead SIEMENS Wwfiufima‘rfifimw I WWUW \HIL " , E I Technical Tie-up with American Company I Mark
Slide 29: International and domestic distribution network
International _ 3 Domestic I Direct network across 50 countries E D'rECt network I Tie up with L&T — access to more than 350 I 23% of sales from global distribution E across 50 dealers in India E I 40 international distributors 5 countries I I Direct network for Modular Switches — 50 I Plans to expa
Slide 30: Way Ahead
1 (Y ’—___________________________________ Way Ahead
Slide 31: Strategy: way ahead
EEIZEI“ Operational Excellence I Consistently executing business strategy and continued focus on improving operating costs by sourcing quality raw materials and efficient manpower Venture into new project/ product development I Look for Technical alliances to develop newer and technically advanced p
Slide 32: Contact information
EEIZEI“. G3 NSE SALZERELEC §§é eeeeeeeeeeeeeeeeeee 517059 Blooming SZEIN REUTERSIID SALZ.BO For further information, please contact: Company : Investor Relations Advisors : Salzer Electronics Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Baskarasubramanian Ms. Savli Mangle baskarasubramanian@salzergr