Permanent Magnets Limited · BSE:PERMAGN
Permanent Magnets — Investor Presentation (March 2022)
40 slides from Permanent Magnets's investor presentation, March 2022
Slide 1: Investor Presentation FY22
INVESTOR PRESENTATION FY22 PML 01
Slide 2: Business Overview, Strategic Review, Growth Drivers, Financial and Quarterly Snapshot
COMPANY BUSINESS OVERVIEW OVERVIEW STRATEGIC GROWTH REVIEW DRIVERS FINANCIAL QUARTERLY SNAPSHOT SNAPSHOT PML 02
Slide 3: Company Overview
Company Overview JOURNEY & TRANSFORMATION 04 PML AT A GLANCE 05 PML’S VALUE PROPOSITION 06 ROBUST CAPABILITIES 07 PRODUCT PLATFORMS 08 KEY PRODUCTS 09 CRITICAL PRODUCT APPLICATIONS 10 ESTABLISHED CLIENTELE 12 SEASONED MANAGEMENT TEAM 13 STRONG CORPORATE GOVERNANCE 14 KEY TECHNICAL PARTNERSHIPS 15 QU
Slide 4: Journey and Transformation
COMPANY OVERVIEW Journey and Transformation 1960 Growth in magnets business for KEY MILESTONES 2005 2000 2005 energy meters and automotive applications Commenced magnetic Hi-perm Division started: assemblies export Soft magnetic parts • Change in the energy meters technology led to a downturn in the
Slide 5: PML at a glance
COMPANY OVERVIEW PML at a glance PML is a solution provider of electrical components and 60+ 460+ YEARS OF EXPERTISE COMMITTED MEMBERS assemblies based on certain INTO MAGNETS, MAGNETIC ASSEMBLIES, AND SHUNTS INCLUDING 50+ ENGINEERS core technologies such as current & speed sensing, magnetic shieldi
Slide 6: PML's value proposition
COMPANY OVERVIEW PML’s value proposition PML is a solution provider with expertise in design, prototype, and production of components and assemblies related to Automotive, Metering and other sectors Capabilities to conceptualise and implement customised AIMS TO BE A Strict adherence to the design an
Slide 7: Robust Capabilities
COMPANY OVERVIEW Robust Capabilities PML has exceptional expertise in the fields of metallurgy, mechanical engineering, electrical engineering, and electronics, enabling it to offer comprehensive solutions to its clients • Experts in metallurgy, mechanical, electrical UNDERSTANDING OF and electronic
Slide 8: Product Platforms
COMPANY OVERVIEW Product MAGNETIC SENSING CURRENT SENSING MAGNETIC ASSEMBLIES Platforms Technologies focused on: Technologies focused on: Magnetic assemblies focused on performing functions such as: • Speed sensing • Shunt current sensors • Holding Focus on building • Torque sensing • Angular sensin
Slide 9: Key Products
COMPANY OVERVIEW Key Products 01 02 03 04 05 MAGNETIC SENSING CURRENT SENSING MAGNETIC ASSEMBLIES ALLOYS ZAMAK DIE CASTING Shielding C Shape Module Magnetic Lifter Alloy Ingot ZAMAK Valve Shielding-MuMETAL Zero Gauss Shunt Iron Filing Removal Machine Ingot ZAMAK Insert Chambers PML 09
Slide 10: Critical Product Applications: Automobile
COMPANY OVERVIEW Critical Product Applications Speed Sensor AUTOMOBILE 1 Laminations 1 Permanent Magnets 2 Rotor Laminations 3 EPS Battery 1 7 Current Sensor 4 4 4 4 Shields Shunt Flux Concentrator 3 6 5 Battery 2 Monitoring Sensor 5 Clamp On 5 HSM 800 5 Smart Battery Clamp 6 Toroidal Cut Core 7 BMS
Slide 11: Critical Product Applications: Electricity and Gas Meter
COMPANY OVERVIEW Critical Product Applications ELECTRICITY METER GAS METER 1 CT 2 Shunt 2 1 7 3 Shields 4 Flux Concentrator 6 8 3 5 4 5 Brass terminal 6 C Core 7 GFCI 8 Diaphragm Assembly PML 011
Slide 12: Established Clientele
COMPANY OVERVIEW Established Clientele Automobiles & Electricity Meters are PML’s key application industries PML is the only supplier >> AUTOMOBILE >> ELECTRICITY METERS for many ~50% of Tier-I Top 3 products and PML is a preferred supplier of electrical PML is a supplier to the top 3 electricity am
Slide 13: Seasoned Management Team
COMPANY OVERVIEW Seasoned Management Team PML's management team is well-balanced, comprising seasoned business executives and a young, dynamic team of around 15 second-level managers, in the average age group of 35 years MR. SHARAD TAPARIA MR. SHAILESH SULE MR. PRABHAKAR KAMATH MR. SUKHMAL JAIN MR.
Slide 14: Strong Corporate Governance
COMPANY OVERVIEW Strong Corporate Governance Board is headed by a Non-Executive Chairman and has a balanced composition of Independent, Executive and Non-Executive Directors MR. RAJEEV MUNDRA MR. SHARAD TAPARIA MR. KAMAL BINANI MR. MUKUL TAPARIA MS. SUNAINA TAPARIA MR. GIRISH DESAI Chairman, Indepen
Slide 15: Key Technical Partnerships
COMPANY OVERVIEW Key Technical Partnerships PML has, on multiple occasions, established significant technical & commercial alliances in order to keep abreast with the most recent technological developments, and explore uncharted markets LEGACY RECENT COLLABORATIONS PARTNERSHIPS Centro Magneti Perman
Slide 16: Quality Control Systems
COMPANY OVERVIEW Quality Control Systems SCOPE OF CERTIFICATIONS KEY CERTIFICATIONS 01 • PML adheres to the quality standards of the ISO 14001:2015 ISO 17025:2017 AS9100D:2016 industry • The production facilities and QMS are Design, manufacture and certified by IATF, AS, EMS and OSHAS supply of Magn
Slide 17: Business Overview
Business Overview NEW PRODUCT DEVELOPMENT 18 PRODUCT LIFE CYCLE 19 COMPONENTS TO MODULES 20 BROAD-BASING CUSTOMER BASE 21 GEOGRAPHY-WISE SALES TREND 22 APPLICATIONS-WISE SALES TREND 23 PML 017
Slide 18: New Product Development
BUSINESS OVERVIEW New Product Development For customer Developing Incorporating COMMERCIALISING designed products cost-effective customer feedback PRODUCTS manufacturing solutions & iterations >> Successfully moving products from prototyping stage to GENERATING DEVELOPING commercial CUSTOMER PROTOTY
Slide 19: Product Lifecycle
BUSINESS OVERVIEW Product Lifecycle • Continuous product additions to • Rate of new product introduction will be compensate sales of maturing products higher than rate of maturity AVERAGE AGE OF PRODUCT LIFE CYCLES • Focus on technologies & capabilities 8-10YR rather than specific-products Electrici
Slide 20: Components to Modules
BUSINESS OVERVIEW Components to Modules 01 A STRATEGIC MOVE TO ADD COMPETENCIES IN 02 SHIFTING BUSINESS FROM COMPONENTS TO MODULES 03 PRODUCT CATEGORIES SUCH AS SHUNTS AND SOFT MAGNETIC MODULES TO CAPTURE MORE VALUE MATERIAL COMPONENTS TARGETED IN INITIAL PROJECTS COMPONENTS TO MODULES VALUE CHAIN -
Slide 21: Broad-basing Customer Base
BUSINESS OVERVIEW Broad-basing Customer Base PML is actively diversifying TOP 5 & 10 CLIENT SALES CONTRIBUTION & strengthening its revenue stream through: 01 ACTIVELY COMMERCIALISING Further, PML is looking to actively add new PRODUCT NEW PRODUCTS PIPELINE, 61% 64% 02 application 47% 49% 51% industr
Slide 22: Geography-Wise Sales Trend
BUSINESS OVERVIEW Geography-Wise Sales Trend • Rising share of export sales • New market additions such as China and France • Asia continues to be the flagship market FY22 27% 50% 23% 1% FY21 32% 48% 20% 0% FY20 32% 45% 23% Americas Asia Europe Others PML 022
Slide 23: Application-Wise Sales Trend
BUSINESS OVERVIEW Application-Wise Sales Trend • Electricity Meters continues to be the flagship • New application categories include Electrical, application industry Medical, Aerospace, Engineering and Computers • Gas Meters product category approaching end of life cycle 1% 1% FY22 38% 25% 6% 26% 2
Slide 24: Strategic Review
Strategic Review NEW BUSINESS DEVELOPMENT 25 STRATEGIC PRIORITIES 26 PML 024
Slide 25: New Business Development
STRATEGIC REVIEW New Business Development Introducing new modules and components TECHNOLOGIES & CAPABILITIES New projects in casting space PML is New application of working on ZAMAK die-casting adding newer competencies High-volume sheet metal forming Wire winding Plastic moulding capabilities PML 0
Slide 26: Strategic Priorities
STRATEGIC REVIEW Strategic Priorities MOVING TOWARDS NEW ALLOYS AND MATERIALS +5 YEAR BUSINESS GROWTH IN THE ADDITIONAL CAPABILITIES ADDING MORE PROCESSES AND CAPABILITIES LIKE ALLOY MAKING, HEAT TREATMENT AND SMART MODULES COMMENCING SHIFT < 3 YEAR FROM COMPONENTS TO ASSEMBLIES < 2 YEAR INTEGRATING
Slide 27: Growth Drivers
Growth Drivers GLOBAL SMART METERS 28 ELETRIC VEHICLES 30 PML 027
Slide 28: Global Smart Meters: Market Trends
GROWTH DRIVERS Global Smart Meters: Market Trends CANADA 50% 6.2Mn GLOBAL SMART METERS EUROPE OPPORTUNITY ($ BN) 50% 150Mn INDIA STILL USA LARGELY A 2028 55 88% 107Mn INDIA UNDERPENETRATED >13% 1.5% 3.7Mn MARKET FOR SMART METERS 2021 23 CAGR AUSTRALIA 20% 3.3Mn GLOBAL SMART ELECTRICITY METERS • Repl
Slide 29: Smart Electricity Meters: Growth Drivers
GROWTH DRIVERS Smart Electricity Meters: Growth Drivers On the one hand, the smart meter infrastructure is to empower customers Need for increasing energy efficiency and minimising power by allowing them to loss & theft during transmission Benefits to customers such as choose their power detecting f
Slide 30: EV Market: Market Trends
GROWTH DRIVERS EV Market: Market Trends • Total 10 million electric cars on the world’s roads at GLOBAL ELECTRIC VEHICLE the end of 2020 STOCK BY REGION (UNITS IN MN) • Electric car registrations increased by 41% in 2020, in a year where global car sales reduced 16% 0.8 • Consumer spending on electr
Slide 31: EV Market: Growth Drivers
GROWTH DRIVERS EV Market: Growth Drivers Global OEMs have outlined more ambitious electrification plans. 18 of the top 20 vehicle Government initiatives such as purchase subsidies, and/or vehicle manufacturers in the purchase and registration tax world, which account rebates – aimed at reducing pric
Slide 32: Financial Snapshot
Financial Snapshot PROFIT & LOSS SUMMARY 33 BALANCE SHEET SUMMARY 34 CASH FLOW SUMMARY 35 RATIO ANALYSIS 36 PML 032
Slide 33: Profit & Loss Statement Summary
FINANCIAL SNAPSHOT Profit & Loss Statement Summary (₹ in Crore) PARTICULARS FY18 FY19 FY20 FY21 FY22 Total Revenue 93.21 121.83 109.26 117.57 133.26 Total Operating Expenses 83.41 98.16 86.01 91.43 102.78 EBITDA (Excluding OI) 9.36 22.68 20.55 25.25 26.73 EBITDA (Excluding OI) % 10% 19% 19% 22% 21%
Slide 34: Balance Sheet Statement Summary
FINANCIAL SNAPSHOT Balance Sheet Statement Summary (₹ in Crore) PARTICULARS FY18 FY19 FY20 FY21 FY22 Shareholders Fund 18.40 33.25 47.87 64.03 82.22 Non Current Liabilities 3.17 2.95 5.73 4.44 3.91 Current Liabilities 37.82 30.71 19.50 25.52 29.84 - Trade Payables 23.90 19.62 14.98 22.15 24.60 Total
Slide 35: Cash Flow Statement Summary
FINANCIAL SNAPSHOT Cash Flow Statement Summary (₹ in Crore) PARTICULARS FY18 FY19 FY20 FY21 FY22 Cash from Operating Activities 1.27 9.92 11.50 6.36 3.66 Cash from Investing Activities -2.21 -1.99 -1.54 -2.06 -3.80 Cash from Financing Activities 0.54 -7.18 -8.78 -2.86 -2.63 Net Cash Flow -0.40 0.75
Slide 36: Ratio Analysis
FINANCIAL SNAPSHOT Ratio Analysis EBITDA % ROCE % ROE % Working Capital Days 136 21% 31% 23% days 45% 22% 61% 136 21% 19% 19% 108 99 30% 29% 40% 90 38% 25% 33% 23% 73 31% 10% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PML 036
Slide 37: Quarterly Snapshot
Quarterly Snapshot Q4FY22 PROFIT & LOSS SUMMARY 38 MANAGEMENT COMMENTARY 39 PML 037
Slide 38: Q4FY22 Profit & Loss Summary
QUARTERLY SNAPSHOT Q4FY22 Profit & Loss Summary (₹ in Crore) PARTICULARS Q4FY21 Q3FY22 Q4FY22 YoY % QoQ % Total Revenue 37.65 28.64 39.89 6% 39% Total Operating Expenses 28.37 22.36 30.38 7% 36% EBITDA (Excluding OI) 8.85 5.29 8.47 -4% 60% EBITDA (Excluding OI) % 24% 19% 22% +198 bps +465 bps Intere
Slide 39: Management Commentary
QUARTERLY SNAPSHOT Management Commentary The year under review has been a mixed bag for us. While we made significant progress on a number of initiatives and product introductions during the year, we also saw reduction in “Our outlook for the sales of some products for e.g. gas meter parts as the pr
Slide 40: Safe Harbour
Safe Harbour 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 events not current after the
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