Slide 1: Exchange filing cover letter
DCX SYSTEMS LIMITED CIN: U31908KA2011PLC061686 (Formerly known as DCX Cable Assemblies Pvt Ltd) An AS 9100D Certified Regd. Office: Aerospace SEZ Sector, Plot Nos. 29,30 and 107, email:cs@dcxindia.com Hitech Defence and Aerospace Park, Kavadadasanahalli, Tel: 080-67119555 Bengaluru Rural – 562110, K
Slide 2: Investor Presentation Q4 & FY2023
DCX Systems Limited Investor Presentation Q4 & FY2023
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by DCX Systems 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 contr
Slide 4: Table of Contents
Table of Contents 01 Company Overview 04 Financial Highlights 02 Business Overview 05 Way Ahead 03 Industry Overview 06 Glossary 3
Slide 5: Company Overview
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Slide 6: About Us
About Us • Unique business model providing end-to-end solutions of cable & wire harnesses, electronic sub-systems, high-end System Integration and PCB Assembly for Defence & Aerospace Industry • Diverse mix of domestic and international customers across Israel, US, Korea and India • DCX is a preferr
Slide 7: Key Milestones
Key Milestones 2020 ▪ Commissioned new ▪ Granted industrial license by manufacturing facility at Hi-Tech Department of Industrial Policy and Defence and Aerospace Park SEZ Promotion, GoI - manufacture items in Bengaluru, Karnataka including microwave components, 2011-12 electronic components, assemb
Slide 8: Consistent Growth
Consistent Growth Consistent growth in top line driven by competent & experienced leadership with focused vision and robust execution capabilities Revenue Growth ( Rs. In crores) 1400 1254 1200 1102 • Healthy CAGR of 65.8% 1000 on revenue growth over 800 the last 5 years 641 600 449 • Order book as
Slide 9: Strong & Experienced Management
Strong & Experienced Management Dr. H.S. Raghavendra Rao | Chairman and Managing Director ▪ Promoter of Company with over 2 decades of experience in electronics manufacturing & aerospace sectors Ranga KS | Chief Financial Officer ▪ Conferred with Business Leader of the Year award by ET ▪ Qualified C
Slide 10: Unique Business Model
Unique Business Model Offset / Non-Offset Build to Print Box Model • Strong relationship with Israeli Defence • Domain expertise in developing & Companies, built over a Decade manufacturing aerospace & defence • IOP / Non-IOP partner for Israel / US OEMs electronics products on Build to Print to sup
Slide 11: Key Strengths
Key Strengths Among preferred Indian Experienced & qualified Core competency & Promoters & senior Growing Cable & Wire Offset Partners for defence & Harness portfolio with aerospace industry across experience in electronics management team supported manufacturing by competent skilled better margins
Slide 12: Business Overview
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Slide 13: Business Structure/Model
Business Structure/Model DCX Systems Limited Manufacturing System Integration Others Cable & Wire EMS (PCB IOP Non IOP Kitting MRO Harness Assembly) • Focus on growing this • Core competency of • Preferred IOP for IAI • Focusing on • Supply assembly • Testing & high margin business Company & Group e
Slide 14: Among Preferred IOPs with Global Accreditations
Among Preferred IOPs with Global Accreditations ▪ Among largest IOPs for IAI Group, Israel, for Indian defence market ▪ Undertake “Build-to-Print” system integration and manufacture cable and wire harness assemblies Key Certifications Defence Industrial License from Ministry of Commerce and Industry
Slide 15: Manufacturing
Manufacturing Cables & Wire Harness Backward integration into EMS • Expertise in complete design & development of • Horizontal integration with new verticals like Printed complex cables & wire harness Circuit Board Assembly for aerospace & defence • Investing in Raneal Advanced Systems – mostly from
Slide 16: Raneal Advanced Systems
Raneal Advanced Systems Raneal Advanced Systems (100% Subsidiary of DCX) Setting up EMS/PCBA Manufacturing unit For Manufacturing, Used in Defence, Leading to Better cost Qualification & Life cycle Aerospace, Industrial control, support of high reliability Electronics Applications, Supply chain Medi
Slide 17: System Integration
System Integration • System integration (SI) services are part of comprehensive array of electronics and electro-mechanical and enclosure assembly • Services include in-house testing, including vibration & environmental stress testing of complex radio frequency products to ensure high quality final
Slide 18: Others
Others Kitting MRO • Sizeable opportunity in Maintenance, Repair & • Supply assembly ready kits of electronic and Overhaul electro-mechanical parts • DCX would be in better position to offer MRO services as it has in-house testing machinery provided by OEMs • Additional stream of revenue with better
Slide 19: Reputed clientele supporting DCX
Reputed clientele supporting DCX Key Customers Working closely with clients: • For timely execution • For ‘Just-in-Time’ Inventory Management • To improve quality of raw materials supplied Obsolescence proof Customers provide Customers typically DCX and its Manufacturing as As of March 31, 2023, equ
Slide 20: Technology enabled and scalable end-to-end capabilities
Technology enabled and scalable end-to-end capabilities Specialized capabilities across products Maintain quality standards of the product Meeting specific requirements and quality expectations Array of electronic, electro-mechanical and wired assemblies, and full- system integration services - can
Slide 21: Strategically located in aerospace SEZ with advanced manufacturing facility
Strategically located in aerospace SEZ with advanced & modern manufacturing facility Facility spread over 30,000 square feet – strategically Facility situated within SEZ that offers duty located in same city as some key domestic customers - free imports, exemption from GST and supplies ensuring shor
Slide 22: Industry Overview
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Slide 23: Indigenous Industry Drivers
Indigenous Industry Drivers Corporation of Ordnance Factory Board (OFBs) Budget Allocations FDI Norms 03 02 04 Positive Indian Offset – Indigenisation List Self Reliant 01 05 Industry Tailwinds for DCX • Application of EMS products in civilian and other sectors like medical devices • Transfer of Tec
Slide 24: Growing landscape for defence serves as key opportunity for DCX
Growing landscape for defence serves as key opportunity for DCX Growth Drivers Global Defence Spending Forecast (in USD billion) CAGR: 3.99% Ongoing political tensions and geopolitical uncertainty 2,524 2,600 2,652 2,290 2,427 2,181 Great power struggle and competition amongst nations Modernisation
Slide 25: Well-positioned to capitalize on industry tailwinds
Well-positioned to capitalize on industry tailwinds High India market potential for DCX USD Mn CAGR: 15.4% Numerous Government Initiatives Cable & Wire Harness 1,477.3 Industry Size 541.2 Positive Indigenisation List 2022 2029 USD Mn CAGR: 49.7% 4,510.0 Defence Acquisition Policy 2020 EMS Industry S
Slide 26: Financial Highlights
Financial Highlights
Slide 27: Q4 FY23 Financial Highlights
Q4 FY23 Financial Highlights Standalone Consolidated Particulars (Rs. Crs.) Q4 FY23 Q4 FY22 Y-o-Y (%) Q4 FY23 Revenue from Operations 510.55 374.04 36.50% 510.55 Raw Material Expenses 456.08 323.03 456.06 Employee Cost 2.76 3.05 2.78 Other Operating expenses (Incl. FX Loss) 5.86 11.47 5.86 FX Loss 3
Slide 28: FY23 Financial Highlights
FY23 Financial Highlights Standalone Consolidated Particulars (Rs. Crs.) FY23 FY22 Y-o-Y (%) FY23 Revenue from Operations 1253.63 1102.27 13.73% 1253.63 Raw Material Expenses 1119.22 1000.59 1119.20 Employee Cost 10.50 8.67 10.51 Other Operating expenses (Incl. FX Loss) 40.00 26.03 40.25 FX Loss 29.
Slide 29: FY23 Standalone Balance Sheet
FY23 Standalone Balance Sheet Rs. in Crores Rs. in Crores Mar-23 Mar-22 Mar-23 Mar-22 Total Equity & Liabilities Total Assets Shareholders Funds 567.06 117.60 Non Current Assets 31.12 18.92 Share Capital 19.34 15.48 Property, plant & Equipment 10.82 10.79 Other Equity 547.71 102.12 Right of use Asse
Slide 30: FY23 Standalone Cash Flow Statement
FY23 Standalone Cash Flow Statement Rs. in Crores Mar-21 Mar-22 Mar-23 Net Profit Before Tax 39.81 75.56 86.10 Adjustment:- Depreciation 2.43 2.18 1.82 Interest Expenses 4.74 7.24 18.71 Interest Income -22.40 -22.02 -29.40 Excess of cost over fair value of investments 0.02 - - Profit on Sale of Fixe
Slide 31: Order Book Position
Order Book Position Segmental Split of Order Book Sizeable order Book FY22 FY23 Orders from several customers are for 5% 1% 4% 1% Rs. Cr. projects to be executed in FY24 to FY25 2,369.0 1,941.3 1,699.0 94% 95% FY20 FY22 FY23 System Integration Cable & Wire Harness Kitting Cable and Wire Harness Asse
Slide 32: Way Ahead
Way Ahead
Slide 33: De-Risking Strategies
De – Risking Strategies Backward New Grow Share Expand Cable & Integration Geographies of Non-Offset Wire Harness into EMS Penetration Projects Business • Expand global presence in • High quality deliverables • PCBAs manufacturing • Focus on growing this aerospace & defence leading to more through w
Slide 34: Move Towards Product Company
Move Towards Product Company Technology Driven Product Company Govt. identified list of indigenous products Focus on Transfer of ToT also saves manpower (cannot be imported, must Save on R&D costs by Technology (ToT), cost and product be manufactured in India) acquiring ToT from OEMs – DCX aims to g
Slide 35: Recent & Expected Developments
Recent & Expected Developments ➢ By end of third quarter FY2023, problems related to dollar exposure and restatement have been resolved, and DCX Systems has well-defined understanding of its business prospects for next three to five years ➢ DCX has successfully obtained revised sanction from majorit
Slide 36: Glossary
Glossary Term Description Term Description IPC Institute for Printed Circuit DAP Defence Acquisition Policy LRSAM Long Range Surface-to-Air Missiles DOMW Defence Offset Management Wing MoD Ministry of Defence EMS Electronic Manufacturing Services MRO Maintenance, Repair and Overhaul PCBA Printed Cir
Slide 37: Thank You
Thank You Company : Investor Relations Advisors : DCX Systems Limited Adfactors PR Pvt. Ltd. Mr. Nagaraj R Dhavaskar Mr. Amit Sharma Amit.sharma@adfactorspr.com Mr. Rahul Trivedi rahul.trivedi@adfactorspr.com www.dcxindia.com www.adfactorspr.com 36