Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Citi Group investor conference, 3 June 2019, Trident BKC, Mumbai
18 slides from Varroc Engineering's conference presentation, May 29, 2019
Slide 1: Intimation of participation in Investor Conference
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Waluj, Aurangabad 431 136 I Tel +91 240 6653600 Fax +91 240 2564540 email: varroc.info@varroc.com www.varrocgroup.com M;ih;ir;i~htr11, India CIN: L2B920MH1988PLC047335 Vdrroc VARROC/SE/I NT/2019-20/23 May 29, 2019 Managor~'jS
Slide 2: Q4 & FY19 Results Presentation
Q4 & FY19 Results Presentation
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: Industry Trends in Q4 FY19
Industry Trends in Q4 FY19 Global Passenger Cars Market Production -4.9% -2.5% -13.5% • Global Passenger Vehicle 43,80,305 67,65,787 42,72,300 59,00,425 56,11,018 58,53,866 production trend continued its declining trend in Q4 FY19 • North American market, which had shown a positive growth in the fir
Slide 5: Business Highlights: Q4
Business Highlights: Q4 • Revenue from Operations for Q4 FY19 up by 5.4% YoY#; FY19 Revenue +18.8%YoY# • EBITDA on a like-for-like basis at INR 2,625 Mn*; FY19 EBITDA growth +17.7% YoY* • PAT for Q4 at INR 1,500 Mn increase of 5.1% YoY; Full year PAT at INR 4,498 Mn, almost same as last year • VLS:
Slide 6: Varroc Group: Summary Key Financials Q4 & FY19
Varroc Group: Summary Key Financials Q4 & FY19 (INR Mn) Growth Growth Particulars Q4 FY 19 Q4 FY18 (Y-o-Y) FY 19 FY18 (Y-o-Y) Revenue from Operations - Reported 31,534 29,846 5.7% 1,20,365 1,03,785 16.0% Revenue from operations : like-for-like 31,387 29,772 5.4% 1,19,533 1,00,637 18.8% Other income
Slide 7: Varroc Group: Business Wise Performance Q4 FY19
Varroc Group: Business Wise Performance Q4 FY19 (INR Mn) Q4 FY19 Q4 FY18 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA Like-for-like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 10,249 10,249 889 889 8.7% 9,784 9,786 1,104 1,104 11.3% 4.
Slide 8: India Business: Financial Performance
India Business : Financial Performance Revenue India Revenue Split by Customer(1) Q4 FY 2019, % (INR Mn) +5% 10,249 Bajaj 24.1% 9,784 9,786 Honda 2.9% Royal Enfield 54.3% Q4 FY2018 Q4 FY2018 Q4 FY2019 4.6% Yamaha Reported Adjusted Reported 6.8% Mahindra & Mahindra 7.2% Strong growth across divisions
Slide 9: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance 50% China Joint Venture: Q4 FY 18 Revenue: 1438 Mn INR Revenue (1) Q4 FY 19 Revenue: 980 Mn INR VLS Revenue Split by Customer(2) (INR Mn) Q4 FY 2019, % +6% Customer A 17.4% 20.7% 19,947 19,800 Customer B 18,824 18,749 Customer C 19.4% Customer D
Slide 10: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) +15.4% 28 5.0 27.1 26 24 3.9 - 22 1.0 20.4 20 4.3 0.6 - 18 17.8 17.7 0.1 2.2 16 14 12 10 Q4 FY2018 Discontinued Q4 FY2018: Revenue impact RM impact Overheads Other income Q4 FY2019: Start-up Costs not Launch related Ind AS 115 impact
Slide 11: Varroc Group: Business Wise Performance FY19
Varroc Group: Business Wise Performance FY19 (INR Mn) FY19 FY18 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA Like-for-like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 42,744 42,744 4,623 4,623 10.8% 36,508 35,555 3,872 3,872 10.9% 20.2
Slide 12: Details on Capex for New Facilities and Revenue Potential
Details on Capex for New Facilities and Revenue Potential Estimated Full Revenue Full Confirmed orders as of March 2019 to meet the Facility Capex potential potential peak revenue and other details on capex (Eur Mn) (Eur Mn) sales year Brazil 27 60 FY23 ~75% sourced business Morocco 60 180 FY23/FY24
Slide 13: Highlights of Major Order Wins and Near Term Potential
Highlights of Major Order Wins and Near Term Potential Business FY New Business wins: VLS / Recent orders: India Near term potentials Overall Net Business Wins of Eur 462 Mn - New Business wins - Eur 228 Million VW is set to become our second largest customer in - Re-wins (net of lost business) - Eu
Slide 14: R & D / Business Updates – Q4 FY19
R & D / Business Updates – Q4 FY19 Global Lighting Business • Opened new Engineering Centre in Krakow, Poland (pictures on page 14) • Workspace for 120 employees; located in city center, with close proximity to two largest technical universities in Poland • Office includes space for mechanical, opti
Slide 15: R & D / Business Updates – Q4 FY19
R & D / Business Updates – Q4 FY19 Polymer • Consistently improving our FSS capability and strengthening team - we will be developing majority of interior parts ( Door trims / console /pillars etc) for a major OEM launch in 2020 • Commissioned the only 3500T molding machine in central India for fron
Slide 16: New R&D Facility – Krakow, Poland
New R&D Facility – Krakow, Poland Facility picture Office Opening function Office Area Office Building 14
Slide 17: Poland Manufacturing Plant: Construction Status
Poland Manufacturing Plant : Const. Status Roof insulation and proofing, skylights Manufacturing Area – inside view 1 Side Wall – Manufacturing Area Manufacturing Area – inside view 2 15
Slide 18: Thank You
Thank You
Varroc Engineering — Citi Group investor conference, 3 June 2019, Trident BKC, Mumbai on 6ix