Slide 1: Avalon Technologies Ltd. Corporate Presentation
Avalon Technologies Ltd. July 2023 Corporate Presentation www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) By attending the meeting where this presentation or accompanying slides (“Presentation”) is made, or by reading the Presentation materials, (A) you acknowledge and agree to be bound by the limitations and restrictions contained herein, (B) agree to maintain absolute confidentiality
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) are under an obligation to update, revise or affirm. You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, witho
Slide 4: Avalon Group - Overview
Avalon Group - Overview
Slide 5: Avalon touches your life in more ways than you know
Telecom, satellite Aircraft engine systems and digital parts infrastructure Avalon touches your Products for Medical devices life in more ways than defense application you know Clean energy with presence in solar, Signaling and braking hydrogen and systems for railways electric vehicles industries |
Slide 6: Avalon – At a Glance
AVALON – AT A GLANCE One of the India’s Leading Fully Integrated EMS Company with a Global Delivery Footprint Only India EMS player to have full-fledged manufacturing facilities in the US Hybrid One stop shop for all EMS 14* Manufacturing units across US Manufacturing 570k+*sq.ft. Design & Located
Slide 7: Our Journey So Far
Our Journey So Far Diversified Business and Strong Growth Avenues Phase 1 Phase 2 Phase 3 1999 2003 2005 2007 2009 2010 2011 2016 Today Commenced Inauguration of new Expansion of Acquired design Entry into Enhanced Fully Strategic entry production of facility in MEPZ- manufacturing capabilities Aer
Slide 8: Why Avalon
Why Avalon Our Key Differentiators Vertical Integration Global Mfg. & Delivery Clean Energy PCB Design and Analysis New Product Development PCB 59% 41% US1 India1 Assembly Cable Assembly & Wire Harnesses Magnetics 1 Sheet Metal Fremont Fabrication & , CA Chennai, Machining India 8 1 Injection Molded
Slide 9: Today
Today End-to-end Product Offering with Vertically Integrated Solutions – “One Stop Shop” Build PCB Sheet System Machining assembly metal integration Rapid prototyping 2 4 6 8 Box build Strong focus on Design & new product providing box build development solutions 54% of revenues in FY23 1 3 5 7 9 PC
Slide 10: Box Build Examples
Box Build Examples Examples of Box Build Solutions Control Panel for Electrical Hydrogen electrolyzer - Power Distribution systems Energy Storage System Distribution Pg no 1 Hydrogen Electrolyzer Control panel for Stone Metro Signaling Assembly Satellite Communication Box Power Electronics systems C
Slide 11: PCB
PCB Examples of Box Build Solutions PCB – Defense Control Card PCB - Railway Signaling PCB – 5G Card Pg no 2 PCB – 5G Card Small Cell PCB – Defense Control Card PCB – Defense RF Card
Slide 12: Cables and Plastics
Cables and Plastics Automotive/ Catalytic Industrial Application Automotive Fire Truck Converter Pg no 3 Hand Held Device for Fleet Enclosure for Smoke Detector, Hand Held Device for Fleet PT Switch Management Aircraft Interior Management
Slide 13: Metals and Magnetics
Metals and Magnetics Manifold for Braking System, Centrifugal Stand for Blood POS devise Holder, Railways Analyser, Medical Commercials Pg no 4 Common mode and differential Inverter transformer High frequency inductor Multi tapped transformer mode choke
Slide 14: Metals
Metals Pg no 4 Energy Storage Cubicles for Railway Electric Vehicle Battery Cassette Tankless Water Heater Enclosure Interface
Slide 15: Global Customer Relationships
Global Customer Relationships Presence across Multiple Industries with a Diversified Customer Base Clean Energy Mobility / Transportation Industrials Communication Medical & Others Automotive Aerospace Power & Telecom & Digital Medical Defence & Solar Electric Hydrogen Railways Automation Satellite
Slide 16: Key Highlights
Key Highlights
Slide 17: Key Highlights
Key Highlights Our Competitive Strengths 1 Uniquely Positioned to Capture the Sizeable and Growing EMS Market Opportunity 2 Growing Presence in Sunrise Sectors 3 Vertically Integrated and High Mix Product Offering across Multiple Industries 4 Longstanding and Growing Relationship with Marquee Custom
Slide 18: Growth Opportunities (1/3) Industry Tailwinds
1 Growth Opportunities (1/3) Key Drivers Emerging sectors Rising share of EMS to drive growth manufacturing • Solar • EMS Industry CAGR1: 32.3% • Hydrogen • Industry In-house CAGR1: 21.4% • Electric Vehicles Industry Tailwinds Mfg. moving to Growing Indian US and India EMS market • “China+1” strat
Slide 19: Growth Opportunities (2/3)
1 Growth Opportunities (2/3) Sizeable and Growing Global EMS Market Opportunity EMS market is poised for a robust growth across industries. India showcases unique competitive strengths India is leading the EMS growth story North America is the 2nd largest EMS market Global EMS Market India’s Market
Slide 20: Our Positioning (3/3)
1 Our Positioning (3/3) Avalon is Uniquely Positioned & Well Placed to Capture Growth in the EMS Industry Service offering Industry presence Diversified Design, Telecom Testing Box Clean Aerospace Vertical Aftermarket product portfolio Year and Build Energy Auto Railways & Defense Industrials (Commu
Slide 21: Clean Energy (1/2)
2 Clean Energy (1/2) Avalon’s Presence in Clean Energy, a Sunrise Sector for the EMS Industry which is Poised for Robust Growth India plans to install 450GW of renewable energy capacity by 2030 Solar Rising adoption of Electric Vehicles Electric vehicles Government schemes and incentives to promote
Slide 22: Clean Energy (2/2)
2 Clean Energy (2/2) Present across the clean energy verticals Electric Vehicles Solar Hydrogen Reputed global customers Robust growth in revenues % of revenue 15.7% 17.7% 20.3% 25.7% (USD mn) CAGR: 32% 2386 1727 1026 1234 FY20 FY21 FY22 FY23 Pg no 7 Note: Numbers have been rounded-off. Clean energy
Slide 23: High Mix Products
3 High Mix Products Leaders in High Mix Flexible Volume Products across Multiple Industries High precision product offering across industries with long product development cycle & significant growth potential Long Product Lifecycle Leaders in High Mix / Flexible Mobility High Margins Volume Products
Slide 24: High Mix Products
3 High Mix Products Examples of Presence in High Mix & Long Product Development Cycle Products Combustion liner Piston assembly for Anti-collision signaling system Aerospace fueling system Railways Industrials ▪ Assembled with 32 sheet metal child parts ▪ Intricate injection insert molding ▪ Conduct
Slide 25: Global Customer Relationships
4 Global Customer Relationships Revenue split based on Customer geography FY 2023 INDIA – 41% US – 59% FY 2022 INDIA – 38% US – 62% | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 28 10
Slide 26: Awards & Recognition
4 Awards & Recognition Numerous Awards Stand Testimony of Performance Collins Faiveley Aerospace Transport Best Supplier Supplier Award for Excellence demonstrated Award for sustained Strategic performance Partnership Environmental Best Indian Prime Leadership Supplier Supplier Award1 CE+T TMEIC Cu
Slide 27: Client Delivery Model (1/2)
5 Client Delivery Model (1/2) Flexibility in manufacturing and leveraging Hybrid Model Make in India Hybrid Make in US for India and Export for US Build Local Expand Global • Labour Intensive • Automation • Configuration Notes: Maps not to scale. | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL
Slide 28: Client Delivery Model (2/2)
5 Client Delivery Model (2/2) Strong Focus on Up-selling and Cross-selling New Product Development PCB Analysis & Design Plastics Design for Manufacturing PCB Assembly Box Build Cables Assembly Prototyping Metals Magnetics | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 31 22
Slide 29: Global Manufacturing Footprint
6 Global Manufacturing Footprint Serve Customers Locally and Leverage Hybrid Model of Delivery Chennai, India Chennai, India Chennai, India Bengaluru, India Atlanta, US Bengaluru, India | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 32 47
Slide 30: Professional Team
7 Professional Team Strong Management Team with Proven Track Record of Performance and Sound Cross-functional Expertise Michael Robinson RM Subramanian Shamil Bicha Kesavan P Chief Operating Officer2 Chief Financial Officer Vice President, Business Vice President, Operations Development ▪ Responsibl
Slide 31: Experienced Board of Directors
7 Experienced Board of Directors Promoter-led Management Team and Highly Experienced Board Kunhamed Bicha Bhaskar Srinivasan Luquman Veedu Sareday Seshu Kumar Chairman & Managing Non-executive Director Ediyanam Non-Executive Director Director Non-executive Director ▪ Promoter of Avalon Technologies
Slide 32: Strong Financial Performance with Visible Growth Profile
8 Strong Financial Performance with Visible Growth Profile Track Record of Sustained Growth in Revenue with Improving Margin Profile and Strong Balance Sheet Strong & Visible Order Book (INR mn) EBITDA (INR mn) & EBITDA Margins Strong Asset Turnover1 Order Book as % of EBITDA Margin (%) India Asset
Slide 33: Profitable Growth
8 Profitable Growth Industry Leading Financial Metrics Showcased industry leading margins and return profile FY23 Gross Margin FY23 EBITDA Margin FY23 PAT Margin FY23 ROCE 35.8% 11.9% 5.5% 24.6% 1 Dixon Technologies India Ltd. 4.2% 4.3% 2.1% 33.4% 2 Amber Enterprises India Ltd. 15.3% 6.9% 2.4% 15.0%
Slide 34: Financial Highlights - Q4 FY23
8 Financial Highlights - Q4 FY23 (INR Cr.) Gross Revenue Margin Q4 FY 23 272 Q4 FY 23 102 17% 26% Growth Growth Q3 FY 23 233 30% Q3 FY 23 81 39% Growth Growth Q4 FY 22 210 Q4 FY 22 73 EBITDA PAT Q4 FY 23 42 Q4 FY 23 22 106% 538% Growth Growth 20 76% 107% Q3 FY 23 Growth Q3 FY 23 3 Growth Q4 FY 22 24
Slide 35: Financial Metrics - I
8 Financial Metrics - I (INR Cr.) 27.2% 26.8% 24.6% 21.3% 10.4 Asset Turn 9.4 RoCE (%) 8.9 8.3 FY 20 FY 21 FY 22 FY 23* FY 20 FY 21 FY 22 FY 23 306 295 294 Gross Debt Net Debt to 248 3.4 4.0 2.9 EBITDA 2.7 Mar’20 Mar’21 Mar’22 Mar’23 FY 20 FY 21 FY 22 FY 23* *Calculated excluding IPO cash proceeds |
Slide 36: Financial Metrics - II
8 Financial Metrics - II Receivables days Inventory days 106 96 89 80 85 77 71 65 Trade Mar’20 Mar’21 Mar’22 Mar’23 Mar’20 Mar’21 Mar’22 Mar’23 144 122 Trade Payables 71 105 Capital Days Net Working 27 79 43 41 days Mar’20 Mar’21 Mar’22 Mar’23 Mar’20 Mar’21 Mar’22 Mar’23 | www.avalontec.com STRICTLY
Slide 37: Business Highlights
Business Highlights Key events 47% INR 1,231 Cr Box-build Revenue Order book On the Aerospace segment, won new businesses from world’s largest aerospace conglomerate including factory transfer projects 59% On the Clean energy segment, progress made through the 24.6% signing of Letter of Intent & Con
Slide 38: Our Growth Strategy
Our Growth Strategy Optimal Blend of Combination of Balance of Geography Today’s & Tomorrow’s Technology Profitability & Growth Customer Presence • Cater to world’s fastest growing EMS • Established businesses – • Focus on profitable growth 41% 59% markets – India & US India USA Collaborate, Grow wall
Slide 39: Summary Financials
Summary Financials
Slide 40: Shareholding Pattern
Shareholding Pattern (INR Cr.) Share Information (As on April 28, 2023) 15% FPI NSE Ticker AVALON BSE Ticker 543896 51% Market Cap (INR Cr) 2,443 Promoters 16% % free-float 29.25% Public Free-float market cap (INR Cr) 715 Shares Outstanding 5,79,53,128 18% DII Electronic Manufacturing Industry Service
Slide 41: Consolidated Profit and Loss
Consolidated Profit and Loss (INR Cr.) Particulars FY20 FY21 FY22 FY23 Revenues from operations 642 691 841 945 Other income 11.3 5.4 11 14 Total income 653 696 852 959 Cost of raw materials consumed 429 436 561 624 Changes in inventories of finished goods, work-in-progress -18 20 -7 -17 Employee be
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet (INR Cr.) Assets FY20 FY21 FY22 FY23 Equity and liabilities FY20 FY21 FY22 FY23 Tangible Assets 75 83 91 106 Shareholder's equity 3 28 89 537 Right-of-use / intangible assets 27 21 25 37 Borrowings – Long term 50 81 74 66 Financial assets 7 4 5 5 Lease and Other non-curren
Slide 43: Overview of Products and Services
Overview of Products and Services
Slide 44: Overview of Products and Capabilities: Design Services
Overview of Products and Capabilities Design Services • Track record of designing PCBAs for critical end-use applications – high end supercomputing, 5G, medical etc. • Key customers include TransDigm Technologies India Pvt. Ltd., Atonarp Micro Systems India Pvt. Ltd., Innominds Software Pvt. Ltd. an
Slide 45: Overview of Products and Capabilities: New Product Development
Overview of Products and Capabilities New Product Development • Equipped with advanced PCB assembly / test facilities Products and Capabilities Overview New Product Development Capabilities One of the leading fully integrated EMS companies with end-to-end capabilities in delivering box build solutio
Slide 46: Overview of Products and Capabilities: PCB Assembly
Overview of Products and Capabilities Printed Circuit Board Assembly • End-to-end service provider of PCBAs, with in-house capabilities to support the entire value chain of customers • Key customers include Kyosan India Pvt. Ltd., Zonar Systems Inc., Caire Inc, e-Infochips Pvt. Ltd. and TMEIC, Japan
Slide 47: Overview of Products and Capabilities: PCB Gallery
Overview of Products and Capabilities Printed Circuit Board Assembly PCB Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 51 35
Slide 48: Overview of Products and Capabilities: Sheet Metal
Overview of Products and Capabilities Sheet Metal Fabrication and Machining • Serves customers in various industries – industrial, aerospace, railways, power & communication • Key customers include Collins Aerospace, US Malabar Company and Faiveley Transport Products and Capabilities Overview Sheet
Slide 49: Aerospace Sheet Metal Gallery
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Aerospace Sheet Metal Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 53 37
Slide 50: Sheet Metal & Machining Gallery
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Sheet Metal & Machining Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 54 38
Slide 51: Overview of Products and Capabilities: Injection Molded Plastics
Overview of Products and Capabilities Injection Molded Plastics • Serves customers in various industries – aerospace, industrial & power • Key customers include Collins Aerospace Products and Capabilities Overview Plastics Facility Plastics Gallery One of the leading fully integrated EMS companies w
Slide 52: Plastics Gallery
Overview of Products and Capabilities Injection Molded Plastics Plastics Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 56 40
Slide 53: Overview of Products and Capabilities: Cable Assembly
Overview of Products and Capabilities Cable Assembly and Wire Harnesses • Serves customers in various industries – solar, medical, power, industrial and automotive Cables & Wire Harnesses Facility Cables & Wire Harnesses Gallery Products and Capabilities Overview One of the leading fully integrated
Slide 54: Cables & Wire Harnesses
Overview of Products and Capabilities Cable Assembly and Wire Harnesses Cables & Wire Harnesses | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 58 42
Slide 55: Overview of Products and Capabilities: Magnetics
Overview of Products and Capabilities Magnetics • Derives majority of revenues in this division from subsidiaries, Avalon and Sienna Magnetics Facility Magnetics Gallery Products and Capabilities Overview One of the leading fully integrated EMS companies with end-to-end capabilities in delivering bo
Slide 56: Magnetics Gallery
Overview of Products and Capabilities Magnetics Magnetics Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 60 44
Slide 57: Overview of Products and Capabilities: End-to-End Box Build
Overview of Products and Capabilities End-to-End Box Build • Key customers include Faiveley Transport, e-Infochips, Kyosan India, Zonar systems Box Build Facility Box Build Gallery Products and Capabilities Overview One of the leading fully integrated EMS companies with end-to-end capabilities in de
Slide 58: System Integration Gallery
Overview of Products and Capabilities End-to-End Box Build System Integration Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 62 46
Slide 59: Overview of Manufacturing Facilities
Overview of Manufacturing Facilities
Slide 60: Avalon's Manufacturing Facilities
Avalon’s Manufacturing Facilities Chennai, India Chennai, India Chennai, India Bengaluru, India Atlanta, US Bengaluru, India | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 64 47
Slide 61: Glossary
Glossary
Slide 62: Glossary
Glossary Term Description Term Description Avalon Avalon Technologies Ltd. IND AS7 Indian Accounting Standard 7 ATS Avalon Technologies and Services IoT Internet of Things B.Com Bachelors in Commerce M.Com Masters in Commerce B.Tech Bachelors in Technology MA Masters in Arts B2B Business to Business
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