Slide 1: Varroc Engineering Limited exchange filing letter
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Art!a Tel +91 240 6653600 email: varroc.info@varroc.com Waluj, Aurangabad 431 136 Fax +91 240 2564540 www.varrocgroup.com Maharashtra, India CIN: L28920MH1988PLC04733S- varroc VARROC/SE/INT/2019-20/21 rvlay 28, 2019 To, (1) The Ma
Slide 2: Investor Presentation
Investor Presentation Sr / ke ag <5) | (G™) eae
Slide 3: Varroc is the 2nd Largest Indian Auto Component Group with a Global Footprint
Varroc is the 2nd Largest Indian Auto Component Group(1) with a Global Footprint • Founded in 1988 in Aurangabad, India by the Jain family • Successful listing on the Indian Stock Exchanges in July 2018 Leading Two primary business lines: tier-1 manufacturer and supplier to 1. Varroc Lighting System
Slide 4: Well Diversified Auto Component Business Across Geographies, Product Groups, Customers and Segments
Well Diversified Auto Component Business Across Geographies, Product Groups, Customers and Segments FY19 Consolidated Revenue: INR 120 bn 100% China JV FY18 Revenue: INR 10 bn(1) Revenue Split by Geography Revenue Split by Products(3) • Diversified business in FY19, % FY19, % developed and emerging
Slide 5: Varroc – The Transformation into a Global Auto Component Group
Varroc – The Transformation into a Global Auto Component Group Investment in Acquired Forging Acquired Visteon’s manufacturing facilities in LOI with Heraeus, company, IMES, global PV lighting Brazil and Morocco Germany for 2W Italy, business (now catalytic VLS) Acquired 90% stake in auto converters
Slide 6: Vision, Mission and Values
Vision, Mission and Values Vision : To be a Rs 200 billion supplier of innovative solutions for transportation and allied industry in 2020 • Core business sectors will be exterior lighting and two-wheelers mobility • Be a partner of choice for vision, mobility and emission technologies • Be the fast
Slide 7: Varroc — Key Strengths
Varroc — Key Strengths Comprehensive Solution Provider to OEMs Global Footprint Servicing key Auto Markets • End-to-end services across design, development and • India Business has Pan-India presence enabling delivery proximity to customers. Plants located in all major auto hubs • Wide range of prod
Slide 8: Low Cost, Strategically Located Global Manufacturing Footprint
Low Cost, Strategically Located Global Manufacturing Footprint 40 Operating plus 3 Upcoming Manufacturing Facilities and 16 R&D Centers Across Asia, Europe, Africa, North and South America 26 Manufacturing Facilities for Varroc India Business Co-location with customers Poland Czech ensures cost effe
Slide 9: Auto Component Business with Diversified Product Lines
Auto Component Business with Diversified Product Lines VLS Varroc’s India Business Other PV Lighting Polymer Electrical Metallic IMES Triom Description • Leading global supplier of • One of the largest • Offers comprehensive • Supplies precision forged • Manufactures • High end exterior automotive l
Slide 10: India Business: Comprehensive Solution Provider to 2W OEMs in India
India Business: Comprehensive Solution Provider to 2W OEMs in India Diversified Portfolio Catering to 2W and 3W Segments Wide range of products across Polymer, Electrical and Metallic segments; One-Stop Shop for customers enabling cross-selling 9
Slide 11: VLS: Wide Range of Lighting Product and Technology Offerings
VLS: Wide Range of Lighting Product and Technology Offerings Broad Portfolio of Lighting Technologies for PV OEMs Globally Headlamps • Full portfolio of head lamp and rear lamp providing a wide range of products Xenon LED Matrix • Established presence in key Rear Lamps emerging technologies such as
Slide 12: Varroc is 6th Largest Global Auto Lighting & 2nd Largest Indian Auto Component Supplier
Varroc is 6th Largest Global Auto Lighting & 2nd Largest Indian Auto Component Supplier Fastest Growing Among the Top Six Global Exterior Auto Lighting Suppliers(1) Exterior Lighting Revenue CAGR (CY14- CY16) • Concentrated market – top 8 players account for >90% of CY16 Rev. US$ Bn 0.8 2.2 2.2 4.9
Slide 13: India Business: Continuous Focus on R&D Capabilities; Enhancing Product Portfolio
India Business : Continuous Focus on R&D Capabilities; Enhancing Product Portfolio Additions to Product Portfolio Over the Years •Polymer Products • Proprietary products •Electrical Products with continuous focus •Metallic Products on innovative, cost competitive designs 2018 2017 • Continuous focus
Slide 14: R&D Efforts Seek to Capitalize on Emerging Trends
R&D Efforts Seek to Capitalize on Emerging Trends Euro V / BS-VI emission norms Reduction in cost of computing power implemented by India along with the and EFI requirement make “smarter” rest of the world will make Electronic Stricter products viable Increased Use Fuel Injection (EFI) necessary on
Slide 15: Experienced Management Team Supported by Reputed Board
Experienced Management Team Supported by Reputed Board Tarang Jain*^ • Experienced management team Founder & MD Managing Director • Independent directors with experience across • Co-founded Varroc in 1988 industries & practices • Nearly 30 years experience in the automotive industry • Strong governa
Slide 16: Financials & Share Details
October 2018 Financials & Share Details
Slide 17: Financial Summary: Key Performance Indicators
Financial Summary : Key Performance Indicators Revenue Trend last 6 years EBITDA and EBITDA margin # INR Billion INR Billion, % 120 14 12.0% 104 9.6% 96 12 10.1% 10.0% 8.8% 82 10 8.0% 61 70 8 6.9% 7.2% 7.0% 6.0% 6 4 4.0% 2 2.0% FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 0 0.0% FY2014 FY2015 FY2016 FY
Slide 18: Financial Summary: Income Statement Q4 & FY19
Financial Summary: Income Statement Q4 & FY19 (INR million) Q4 FY 19 Q4 FY18 % Change FY 19 FY18 % Change Revenue from Operations - Reported 31534 29846 5.7% 1,20,365 1,03,785 16.0% Revenue from Operations : like-for-like 31387 29,772 5.4% 1,19,533 1,00,637 18.8% Other Income - Operating 226 164 650
Slide 19: Financial Summary: Segmental Break-up
Financial Summary : Segmental Break-up Fiscal year ending March 31,* (INR million) FY16 FY17 FY18 FY19 (like-for-like) Revenue % % % % Global Lighting Business 48,198 58.6% 61,242 63.7% 63,211 60.9% 72,668 60.4% India Business 30,807 37.5% 31,681 33.0% 36,508 35.2% 42,744 35.5% Other Businesses 3,18
Slide 20: Financial Summary: Balance Sheet
Financial Summary : Balance Sheet Fiscal Year Ending March 31, (INR mn) 2016 2017 FY18 FY19 Assets Non-current Assets Fixed Assets 24,263 26,881 31,480 45,593 Others - Non-current Assets 4,508 4,538 6,439 8,266 Total Non-current Assets 28,771 31,419 37,920 53,859 Current Assets Current Investments 1
Slide 21: Shareholding Details
Shareholding Details Shareholding Pattern Top Institutional Shareholders * Retail & Others Axis MF 2.7% 1.7% Nomura 2.1% Institutional 13.3% DSP 1.8% T Rowe Price 1.6% L&T MF 1.2% Capital World 0.7% IIFL 0.6% Promoters First State 0.4% 85% I Pru MF 0.2% Schroders 0.2% Equity Share Information SBI Li
Slide 22: Thank You
THANK YOU