Slide 1: Investor Presentation Q3FY23
© BLACK BOX Investor Presentation
Slide 2: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Black Box Limited (Formerly AGC Networks Limited), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe fo
Slide 3: Q3 & 9M FY23 Highlights
Q3 & 9M FY23 HIGHLIGHTS NAME ONE BRAND LANGUAGE 3
Slide 4: Q3FY23 Financial Highlights
Q3FY23 FINANCIAL HIGHLIGHTS Revenue EBITDA PAT Rs. 1,672 Crs Rs. 72 Crs Rs. 8 Crs ▪ Revenue increased by 20% YoY and 7% QoQ in Q3 FY23. Efficient execution of projects from a substantial order backlog helped us to excel and achieve this growth. New booking continues to remain strong ▪ Gross margin i
Slide 5: Robust Balance Sheet
ROBUST BALANCE SHEET Total Borrowings Net-Worth In Rs. Crores In Rs. Crores 462 37 300 260 1 2 361 (286) 87 274 98 176 Mar-20 Repayment Mar-21 Addition Mar-22 Addition Dec-22 (176) Profit Warrants Mar-20 Mar-22 OCI Subscription Dec-22 for the year Money ▪ Additional debt drawn in 9MFY23 for working
Slide 6: Management Commentary
MANAGEMENT COMMENTARY Commenting on the results and performance Mr. Sanjeev Verma, Whole-time Director, Black Box said, “We are pleased to report a 20% growth in our revenues on YoY basis. This growth momentum is driven by healthy order book and sharp delivery capabilities. We continue to see strong
Slide 7: Deal Wins of $80 Million+ During the Quarter
DEAL WINS OF $80 MILLION+ DURING THE QUARTER Transaction Value Clients $62.7 Mn Data Center and In-Building 5G/OnGo solutions for an American online social media and social networking service Connected Building & Unified Communication solutions for one of the largest, and most diverse correctional d
Slide 8: Q3FY23 – Consolidated P&L
Q3FY23 – CONSOLIDATED P&L Particulars (Rs. Crs.) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 1,672 1,387 20% 1,562 7% 4,606 3,928 17% Gross Profit 426 396 8% 366 16% 1,172 1,133 3% Gross Profit Margin 25.5% 28.6% 23.4% 25.5% 28.9% Gain on foreign currency transaction (net)
Slide 9: Well Diversified Global Business Model – 9MFY23
WELL DIVERSIFIED GLOBAL BUSINESS MODEL – 9MFY23 Revenue by Geography Revenue by Industry 3% 1% 1% Technology 4% 3% India, 8% Financial Services Europe, 10% 4% Business Services 19% Healthcare MEA, 3% 6% Distributors APAC, 4% Others 5% Manufacturing 18% Latin America, Retail 2% 11% North America, 74%
Slide 10: Entrenched Customer Relationship
ENTRENCHED CUSTOMER RELATIONSHIP Stable Long Tenure of Relationship* Technology Healthcare Manufacturing Utilities 14% 21% 28% 30% 35% 43% 8 of the Fortune 100 4 of the 6 Largest 7 of the 10 Largest 3 of the Fortune 50 Largest 23.5 Tech Companies Hospitals 22.0 22.7 Global Manufacturers US Utility C
Slide 11: Medium Term Targets
MEDIUM TERM TARGETS NAME ONE BRAND LANGUAGE 11
Slide 12: Medium-Term Targets
MEDIUM-TERM TARGETS Growth Drivers FY20 FY21 FY24 REVENUE 4,994 4,674 7,000 to 7,500 ✓ Increasing existing customers & (Rs. Crs) market penetration + Addition of new clients Normalised ✓ Inorganic growth opportunities EBITDA Margin 6.6% 7.5% 9.0% - 10.0% (%) ✓ Optimize operational efficiencies ✓ Opt
Slide 13: Business Overview
BUSINESS OVERVIEW NAME ONE BRAND LANGUAGE 13
Slide 14: Snapshot
SNAPSHOT Who Are We Black Box® is a trusted IT solutions provider delivering cutting-edge technology solutions Rs 5,370 Crs 8,000+ 250+ and world-class consulting services to FY22 Revenue Global Customers Fortune 500 Companies businesses around the globe. What We Do We accelerate business outcomes w
Slide 15: AGC & Black Box – Moving Forward as One
AGC & BLACK BOX – MOVING FORWARD AS ONE Tata Telecom Tata exits & Avaya AGC goes global and forms JV with Global Connect is expands into North AT&T in India formed America & MEA AGC founded as AT&T exits, Tata- Avaya exits, Essar Forms Multi-Alliances Tata Telecom Avaya JV takes enters and AGC provi
Slide 16: Our Board of Directors
OUR BOARD OF DIRECTORS Sanjeev Verma Sujay Sheth Neha Nagpal Whole-time Director Chairman – Independent Independent Director Director Experience: 29 years Experience: 26 years Experience: 14 years Deepak Kumar Bansal Dilip Thakkar Anshuman Ruia Executive Director & Independent Director Executive Dir
Slide 17: Our Management Team
OUR MANAGEMENT TEAM Sanjeev Verma Deepak Kumar Bansal Rick Gannon President Executive Director & Head of GSI Business Global CFO Experience: 29 years Experience: 25 years Experience: 21 years Kannan Ramaiah Mahua Mukherjee Todd Oseth Head of HR- Americas & Head of HR - APAC, India & Senior VP, GM, T
Slide 18: Improving Financial Flexibility
IMPROVING FINANCIAL FLEXIBILITY Promoter Funding Balance Sheet Strength Credit Rating • In May 2022, the final warrant tranche of • Transformation at Black Box has improved • CRISIL has re-affirmed BBB/Stable rating Rs. 37 crores is received. With this, Rs the financial strength (Investment Grade) t
Slide 19: Inorganic Strategy
INORGANIC STRATEGY NAME ONE BRAND LANGUAGE 19
Slide 20: Inorganic Growth Strategy
INORGANIC GROWTH STRATEGY Identify Businesses that provides expansion through scale and revenues currently operating with sub-optimal margin profile ✓ Capability expansion in areas like Cloud, Data center, Cyber Security, IOT ✓ Geographic expansion within US and Europe and APAC Complementary to exis
Slide 21: Acquisition History
ACQUISITION HISTORY Company Acquired Rationale ▪ Provides a wide range of solutions/Service Offerings largely classified into Cyber Security, Enterprise Networking, Automation and Consulting Services Dragonfly Technologies Pty Ltd (Sept’21) ▪ Rationale is to strengthen its presence in Australia and
Slide 22: Improved Service Offerings & Scale via Acquisition of Black Box
IMPROVED SERVICE OFFERINGS & SCALE VIA ACQUISITION OF BLACK BOX Focus on Global Solutions Integration (GSI) + Technology Products Solutions Focus on Global Solutions Integration Business (GSI) business (TPS) Unified Communications & Collaboration Connected Buildings Data Center & Edge IT 5G / Wirele
Slide 23: Black Box Transformation Since Acquisition
BLACK BOX TRANSFORMATION SINCE ACQUISITION Revenue# (in Mn $) & Gross Margins Adjusted# EBITDA (in Mn $) & EBITDA Margins 27.7% 27.6% 26.7% 28.1% 30.0% 29.9% 29.3% 30.1% 4.5% 5.4% 6.4% 7.0% 5.0% 7.1% 7.0% 6.1% Covid-19 impact Covid-19 impact $148 $146 $146 $157 $150 $10.4 $11.0 $144 $136 $9.3 $9.6 $
Slide 24: Global Footprint
GLOBAL FOOTPRINT Seamlessly transforming technology across enterprises economically, uniformly, and with scale at a global level Across 6 Regions and 35+ Countries… Europe Austria Belgium Denmark Finland France Germany Italy Ireland Netherlands Asia-Pacific North America Norway Australia Canada Spai
Slide 25: Organic Growth Opportunities
ORGANIC GROWTH OPPORTUNITIES Investment in talent acquisition Investment in refreshing the sales team, Cloud-based Offerings hiring of partner managers and solution Launching of new cloud-based offerings architects for new offerings 05 01 Focus on Organic Growth Cross Selling Data Center and Cyber s
Slide 26: Our Endeavor
OUR ENDEAVOR Technology Consulting Global SI/IT ICT Solution Value Added Product Distributors Companies Services Integrators Resellers Companies Our endeavor is to be leading Technology Solution Integrator Gross Gross Gross Gross Gross Gross Margin Margin Margin Margin Margin Margin 50%+ 40-50% 30-4
Slide 27: Way Forward
WAY FORWARD Manage Organizational Improve Operational Risks and Compliance Efficiencies Adherence Increase Market Deliver Return on Penetration Technology Investments Optimize Operating Costs Accelerate Revenue Growth To be the Leading IT Solutions Partner for Global Clients 27
Slide 28: Industry Overview
INDUSTRY OVERVIEW NAME ONE BRAND LANGUAGE 28
Slide 29: Global Industry: Total Addressable Market
GLOBAL INDUSTRY: TOTAL ADDRESSABLE MARKET Amount In Billion $ CAGR 4.5% CAGR 13.4% CAGR 16.6% CAGR 5.1% CAGR 15.7% CAGR 44.6% 376 65 1,870 4,809 1,554 343 220 155 30 4,401 483 98 Global IT Cyber UCaaS Data Cloud 5G Spending Secyrity Market Center Market Size Services 2021 4,401 2022 155 2021 30 2021
Slide 30: Business Overview
BUSINESS OVERVIEW NAME ONE BRAND LANGUAGE 30
Slide 31: Product Solutions & Services Offerings
PRODUCT SOLUTIONS & SERVICES OFFERINGS Global Solutions Integration Business (GSI) Technology Products Solutions (TPS) Delivers digital transformation solutions that helps to design, Markets, sells, and distributes IT infrastructure products deploy, manage and strategize IT operations primarily thro
Slide 32: GSI Portfolio
GSI Portfolio In-Building 5G/OnGo® Customer Experience Data Centers Support Services Managed Digital Services Enterprise Workplace Networking Field Services Customer Success Project Connected Services Cyber Security Consulting & Buildings Design Services 32
Slide 33: Case Study – Digital Infrastructure
CASE STUDY – DIGITAL INFRASTRUCTURE Contact Center Infrastructure Upgrade for an Indian Logistics Company THE SOLUTION BENEFIT THE CLIENT THE CHALLENGE Black Box demonstrated the benefits of a A future-ready solution with low. Our client is an Indian Logistics The client decided to upgrade their cen
Slide 34: Case Study – Unified Communications & Collaboration (UCC)
CASE STUDY – UNIFIED COMMUNICATIONS & COLLABORATION (UCC) Seamless Migration for Voice Technology Service THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT This healthcare provider is The client was utilizing PRI, an Black Box provided an up-to-date voice The new centralized SIP service gave acknowledge
Slide 35: Case Study – Data Center & Enterprise Networking and 5G / OnGo
CASE STUDY – DATA CENTER & ENTERPRISE NETWORKING AND 5G / ONGO Ubiquitous, 5G-Ready Wireless Coverage THE SOLUTION BENEFIT THE CLIENT THE CHALLENGE Black Box has, so far, designed and installed Future-ready and 5G capable, the This large, university-based The client needs to provide mission- the Com
Slide 36: Case Study – Cyber Security
CASE STUDY – CYBER SECURITY Turn-key Vulnerability and Gaps Assessment for Geauga County THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT Geauga County, a county in the • Visibility • Vulnerability and gaps assessment on • Optimization of security assets U.S. state of Ohio, in support of • Cyber securi
Slide 37: Strong Relationship with Global Tech Partners
STRONG RELATIONSHIP WITH GLOBAL TECH PARTNERS *All logos are the property of the respective owners 37
Slide 38: Technology Products Solutions
TECHNOLOGY PRODUCTS SOLUTIONS TPS provides connectivity that enables businesses to better visualize and analyse information ✓ Strong brand awareness with 40+ years of history with sizable installed base ✓ We are a market leader in control room designs and deployments with reputation for being the be
Slide 39: Technology Products Solutions Portfolio
TECHNOLOGY PRODUCTS SOLUTIONS PORTFOLIO KVM IoT Audio Video • Extenders • Multiviewers • BLE Beacons & • Gateways & Data • Adapters • Extenders • KVM Manager • Secure ID Cards Acquisition • AV-over-IP • Repeaters • LCD Console • Single-User Switches • Connected Buildings • Smart Sensors • Control Sy
Slide 40: Our Product Partners
OUR PRODUCT PARTNERS Leveraging our Relationships with Global Distributors % 40
Slide 41: Case Study - KVM
CASE STUDY - KVM Broadcaster Builds Studios on Black Box Emerald KVM-over-IP Platform THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT A broadcaster teamed with a Customer’s desire was to enable flexible The Black Box Emerald KVM-over-IP The complete Emerald solution global systems integrator to plan I
Slide 42: Case Study – Networking
CASE STUDY – NETWORKING KVM Solutions deployed for the Defence Sector in the NORDICS THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT A solutions integrator and Black The customer needed a software solution The customer already had KVM extender Customer can now secure 44 PCs in an Box customer involved
Slide 43: Case Study – Networking
CASE STUDY – NETWORKING Environmental Monitoring for a Railway System THE CLIENT THE CHALLENGE THE SOLUTION BENEFIT The client is one of the oldest Replace the railway’s legacy remote To keep the railway's network operating The system integrates with other Ministry of Transportation and environmenta
Slide 44: Our Customers
OUR CUSTOMERS Bank of America. ‘intel) ja | Ss ie Hewlett Packard SuNTRUST Enterprise Cleveland Clinic a TATA "TATA CONSULTANCY SERVICES Cayex Genentech etisalat & Infosys “Dienep fh Trinity Health rece z <*> epF ENERGY Bloomberg -“4—
Slide 45: Organization Sized to Scale Growth
ORGANIZATION SIZED TO SCALE GROWTH Black Box Skills Across Talent Acquisition: Digital Workflow 2,789 ▪ Ratio-centric manpower including sales, delivery and services team – capable and technically competent to Connected Building 537 achieve growth Data Center 353 ▪ Dedicated talent acquisition team
Slide 46: Historical Financial Highlights
HISTORICAL FINANCIAL HIGHLIGHTS NAME ONE BRAND LANGUAGE 46
Slide 47: Improving Financials Over Last 5 Years
IMPROVING FINANCIALS OVER LAST 5 YEARS Particulars (Rs. Crs. ) FY18 FY19 FY20* FY21 FY22 Revenue from Operations 733 1,853 4,994 4,674 5,370 Gross Profit 204 496 1,521 1,497 1,549 Gross Profit Margin 27.8% 26.8% 30.4% 32.0% 28.9% Total Other Expenses 170 450 1,192 1,145 1,289 EBITDA 33 47 328 352 26
Slide 48: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Mar-22 Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Mar-22 EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant And Equipment 23 156 164 164 190 Equity Share Capital 28 30 30 33 33 Right Of Use Asset -
Slide 49: Summary of Consolidated Cash Flows
SUMMARY OF CONSOLIDATED CASH FLOWS Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20** Mar-21 Mar-22 Operating profit before working capital changes 24 (33) 346 329 253 Changes in working capital 18 (13) 817 35 (61) Cash generated from operations 42 (46) 1,163 364 192 Direct taxes paid (net of refund) 10
Slide 50: Annexure – Links to Stock Exchange Intimations
Annexure – Links to Stock Exchange Intimations Particulars Links CRISIL Ratings Rationale Press Release Press Release 4 Press Release 3 Black Box Corporation Acquisition Press Release 2 Press Release 1 Fujisoft Technologies UAE Press Release Pyrios Pty Ltd (Australia) Press Release 2 Pyrios Pty Ltd
Slide 51: Contact Us
CONTACT US Company : Investor Relations Advisors : Black Box Limited Strategic Growth Advisors Private Limited CIN: L32200MH1986PLC040652 CIN: U74140MH2010PTC204285 Deepak Bansal Rahul Agarwal / Karan Thakker deepak.bansal@blackbox.com rahul.agarwal@sgapl.net / karan.Thakker@sgapl.net +91 982143 886