Slide 1: Exchange filing cover letter: Investor Call Presentation
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/2022-23/20 May 02, 2022 To, The Manager- Listing Th
Slide 2: Investor update: Divestment of the 4-Wheeler Lighting business
Varroc Engineering Limited Investor update May 2022 Divestment of the 4-Wheeler Lighting business in the Americas and Europe Confidential
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: Proposed Divestment - Overview
Proposed Divestment - Overview Varroc Engineering Limited (Varroc) has entered into a definitive agreement with Compagnie Plastic Omnium SE, France (PO) to divest its 4-Wheeler lighting business in the Americas and Europe Enterprise value of EUR 600M for 100% of the entities located in the Americas
Slide 5: Scope of Divestment
Scope of Divestment Varroc India business Included Businesses to be Engineering (4W Lighting, Electricals & Electronics, Polymer and divested - 4W lighting businesses Limited (VEL) Metallic) in Americas and Europe, and global R&D support team in India VarrocCorp R&D Global Support Team Holding B.V
Slide 6: Rationale for the Divestment
Rationale for the Divestment Significant impact on the operating performance of the Varroc Lighting Systems business due to Covid-related disruptions from early 2020 Semiconductor supply shortages have compounded the situation due to lower OEM demand, impacting capacity utilisation, margins and cash
Slide 7: Proforma impact of divestment on Key Financial Indicators
Proforma impact of divestment on Key Financial Indicators Significant Deleveraging expected by YTD Dec’21 Financials (excluding Q1*) Closing – negative Net Debt Particulars Pre Post 1.22X Divestment Divestment 1.14X 0.8X (Reported) (Proforma) Revenue (Cr) 6,168 2,997 Net Debt/ EBITDA (Cr) 50 208 Equ
Slide 8: Varroc – Way Forward
Varroc – Way Forward Varroc to focus on EV Components, Electronics, Connectivity solutions and the global 2-wheeler lighting segment, in addition to the current India business The stable India business provides a strong platform to drive growth going forward; potential to drive further margin improv
Slide 9: EV Product Offerings
EV Product Offerings WE OFFER WIDE RANGE OF PRODUCTS FOR ELECTRIC VEHICLE WITH LOCALISED DESIGN, DEVELOPMENT & MANUFACTURING 1 9 8 7 6 5 4 3 2 1 0 Telematics LED Lighting Electronic Throttle TFT/fully BMS On Board DC-DC Motor PMSM Switches Position Digital Charger Converter Controller Traction Motor
Slide 10: High Technology Electronics
High Technology Electronics P R O D U C T L I N E S EFI System Light Control Modules Light Engines ADAS enablement cameras • Scalable Entry to High LCUs • Economy and Matrix Light • Driver Monitoring Engines Capabilities D • Rear lamp CUs including E animation • Driver warning with vehicle T interve
Slide 11: Our Core Values
0 69 120 91 155 213 71 71 71 130 177 211 23 112 155 98 153 62 191 191 191 Our Core Values Confidential