Slide 1: Exchange filing cover letter for investor presentation
Ref: CEL/NSEBSE/IP/22112022 22nd November 2022 To, Listing Department Department of Corporate Services ‐ Listing National Stock Exchange of India Limited BSE Limited Exchange Plaza, P. J. Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Re: Scrip Symbol: C
Slide 2: Investor Presentation November 2022
INVESTOR PRESENTATION November 2022
Slide 3: Snapshot
Snapshot 25+ years of domain expertise in Global Operations with strong Concept to Commissioning 1,800 Employees Electronics Design & Manufacturing presence in India, Europe and North capabilities 650 Designers Solutions America Flexible Engagement Models Strong Supply Chain Network Strong relations
Slide 4: Company Overview
Company Overview • Founded in 1993, Centum Electronics Limited H1-FY23 Key Business Segments: (Centum) is one of the largest Electronics System Operational Income (In Mn) and EBITDA • Engineering R&D (ER&D) Services (34%) – Involves Design and Manufacturing (ESDM) companies in Margins (%) conceptual
Slide 5: Key Milestones
Key Milestones • Greenfield expansion for EMS capacity • Acquisition of Adetel Group to expand service offerings of ER&D Services, establish global footprint across Europe and 2016-2022 North America and new customer/market access Future Proof • Exit from FCP component business through the sale of 5
Slide 6: Board of Directors
Board of Directors Apparao V Mallavarapu - Chairman & MD Rajiv C Mody - Independent Director Apparao (Rao) V Mallavarapu founded Centum Electronics in the year Mr. Rajiv C Mody is the Founder, Chairman, Managing Director & CEO, of 1993. Under his able leadership Centum has grown to become one of Sas
Slide 7: Key Management Personnel
Key Management Personnel K S Desikan - Chief Financial Officer K S Desikan has been serving as CFO at Centum since 2001 and has been instrumental in the development of the strategy and growth of the company. He has an overall experience of 34 years. Prior to joining Centum, he served leading organiz
Slide 8: Geographical Presence
Geographical Presence Canada UK Belgium France USA India Design Team Manufacturing Sales & Support 7
Slide 9: Manufacturing Facilities
Manufacturing Facilities Canada Design Department - France Micro Electronics Manufacturing - Bangalore New Facility in Bangalore Aerospace Park EMS Manufacturing - Bangalore Testing Lab - Bangalore 8
Slide 10: Awards & Recognition in Last Few Years
Awards & Recognition in Last Few Years Highest Growth – Electronic Global Growth Centum in Forbes Asia’s Electronics Man of the Hardware Exporter Company 200 BUB list Year Best Electronics Champion Of Innovation Best Electronic System Excellence in Financial Manufacturing Company In (Mr Mallavarapu
Slide 11: Certifications
Certifications IATF 16949 BUREAU VERITAS Certification Aerospace Medical Automotive Railways ISO 9001 AS/EN9100 Rev D ISO13485 IATF 16949 IRIS - Rev 2 French R&D Information Security ESD 20:20 Approved R&D Environment certification & Management facility by DST & ISO14001 system ISO 27001 GOI Health
Slide 12: Centum's Value Proposition
Centum’s Value Proposition • Global Footprint close • Competitive • Integrated Fast New • Strong Domain Expertise to the customers Engineering R&D by Program Management to conceptualize & balancing on- can reduce time to realize High-Reliability • Uniquely positioned as shore/offshore mix market, su
Slide 13: Future Growth Strategy
Future Growth Strategy Deeper entrenchment of customers by offering one-stop- Clear focus towards achieving shop solutions with vertically sustainable growth, while integrated capabilities and enhancing margin profile by value-added services reducing costs and deleveraging Expand customer portfolio
Slide 14: Business Overview
© BUSINESS OVERVIEW
Slide 15: Business Segments and Sectors Served
Business Segments and Sectors Served ER&D EMS BTS Defence CONCEPTUALIZE DESIGN PROTOTYPE & PILOT MASS AFTERMARKET / SPECIFY VERIFY PRODUCTION PRODUCTION LIFE CYCLE SUPPORT Space • Feasibility • Hardware design • Electrical CAD • Qualification • Manufacturing • Value engineering batch Aerospace • Arc
Slide 16: Engineering R&D Services (ER&D)
Engineering R&D Services (ER&D) • Engineering Services involve conceptualizing, designing and certifying of Electronic Hardware, Embedded Software, FPGA, Analog, Radio Frequency products, Power Electronics, etc. • Centum Group has a global design strength of over 650 design engineers and for the las
Slide 17: Electronic Manufacturing Services (EMS)
Electronic Manufacturing Services (EMS) • The company’s EMS Services include manufacturing solutions focused on a High reliability, High Complexity products in the high technology segment • Centum offers a wide range of manufacturing solutions from Printed Circuit Board assemblies to Complex box bui
Slide 18: Build to Specification (BTS)
Build to Specification (BTS) • The Built to Specification services include taking a project from conceptualization to mass production quickly and efficiently. Centum’s unique positioning with a full range of integrated capabilities makes it the ideal product realization partner. • Customers choose t
Slide 19: Aerospace, Space & Defence
Aerospace, Space & Defence AEROSPACE • The Aerospace industry has several ongoing technological initiatives to make aircrafts more fuel-efficient, environmentally friendly and safer, which involves incorporating more electronics on board, making avionics platforms more configurable, and of course fa
Slide 20: Industrial & Energy
Industrial & Energy • The digital transformation in utilities, infrastructure and manufacturing among other industrial segments is driving new products that are smart, collaborative and result in efficiencies for end-users. • Centum enables its customer to realize such products for applications in I
Slide 21: Healthcare
Healthcare • The field of healthcare is rapidly adopting new technologies to augment the quality of treatment and create efficiencies for healthcare providers. • Centum has engineered a variety of medical devices and equipment for the Healthcare industry that include digital radiography systems, aut
Slide 22: Transportation & Automotive
Transportation & Automotive TRANSPORTATION AUTOMOTIVE • Centum is at the forefront of the Transportation sector • The automotive industry is going through a dynamic working very closely with the leading global OEMs transformation with new players entering the market and rail operators on developing
Slide 23: Industry Overview
© INDUSTRY OVERVIEW
Slide 24: ESDM Industry
ESDM Industry • The Electronics System design & manufacturing (ESDM) sector in India is predicted to reach to US$ Global Electronic Market Size (USD Tn) 7.5 7.30 220 billion by 2025, expanding at a 16.1% CAGR between 2019 and 2025. 7.10 6.90 7 6.70 • The government has set a target to get INR 18,000
Slide 25: Space, Defence, Transportation & Other Industries
Space, Defence, Transportation & Other Industries • Defence: The Indian government has set the defence production target at US$ 25 billion by 2025. The Defence Production Ordanance government is taking several initiatives to encourage domestic manufacturing and reduce its external factory board depe
Slide 26: Engineering R&D Service Industry
Engineering R&D Service Industry • Global engineering R&D services outsourcing market is anticipated to reach more than USD 650 billion by 2025 according to a new report published by The marker research report. The major factors which are driving this market are the access to low-cost highly skilled
Slide 27: Financial Overview
© FINANCIAL OVERVIEW
Slide 28: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY20 FY21 FY22 H1-FY23 Operational Income 4,824 4,245 3,480 2,026 Total Expenses 4,111 3,621 3,055 1,932 EBITDA 713 624 425 94 EBITDA Margins (%) 14.78% 14.70% 12.21% 4.64% Other Income 43 39 58 24 Depreciation 131 158 165 81 Finance Cost 2
Slide 29: Standalone Balance Sheet
Standalone Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2,110 2,120 2,136 Equity 2,547 2,645 2,594 (a) Property, Plant & Equipment 1,075 1,033 970 (a) Share Capital 129 129 129 (b) Capital Work in progres
Slide 30: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY21 FY22 H1-FY23 Operational Revenue 8,833 8,174 7,799 4,096 Total Expenses 7,852 7,279 7,056 3,900 EBITDA 981 895 743 196 EBITDA Margins (%) 11.11% 10.95% 9.53% 4.79% Other Income 153 58 80 32 Depreciation 414 453 432 218 Finance C
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES (1) Non-current assets 3,611 3,261 2,990 (1) Equity 2,401 1,985 1,900 (a) Property, Plant and Equipment 1,184 1,120 1,039 (a) Equity share capital 129 129 129 21 0 0
Slide 32: Consolidated Financial Highlights
Consolidated Financial Highlights Operational Revenue EBITDA & EBITDA Margins (%) PAT & PAT Margins (%)* 981 300 1.90% 3.00% 8,833 895 20.00% 1.47% 8,174 2.00% 200 7,799 900 18.00% 742 1.00% 800 16.00% 100 168 (94) 700 14.00% 120 0.00% - -1.00% 12.00% 600 500 10.00% -100 FY20 FY21 FY22 H1-FY23 -2.00
Slide 33: Capital Market Data
Capital Market Data 1 Year Stock Performance upto 30th September,2022 Centum Sensex 40% 30% 20% 10% 0% -10% -20% -30% Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Price Data (As on 30th September, 2022) Shareholding Pattern (As on 30th September,2022) CMP 481.1
Slide 34: Disclaimer
Disclaimer Centum Electronics Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all eve