Salzer Electronics Limited · NSE:SALZERELEC

Salzer Electronics — Q3 FY2019 Earnings Presentation

36 slides from Salzer Electronics's earnings presentation, Feb 8, 2019

1. Slide 1: Salzer Electronics Limited Result Update Presentation Q3 & 9M FY19

   Salzer Electronics Limited Result Update Presentation Q3 & 9M FY19

2. Slide 2: Disclaimer

   Disclaimer This presentation has been prepared by Salzer Electronics 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 an

3. Slide 3: Table of Contents

   Table of Contents Financial Highlights 01 Company Overview 02 Business Overview 03 Way Ahead 04 3

4. Slide 4: Financial Highlights

   Financial Highlights Salzer Electronics Limited Investor Presentation FY17

5. Slide 5: Joint Managing Director's Message

   Joint Managing Director’s Message Commenting on the results, Mr. Rajesh Doraiswamy, Joint Managing Director, said : “This nine months FY19, we have demonstrated revenue growth of 28% YoY, on account of higher contributions from Wires & cables and building product segments, despite a challenging indu

6. Slide 6: Q3 FY19 Financial Highlights

   Q3 FY19 Financial Highlights* Rs. in Crore Q3 FY19 Q3 FY18 Y-o-Y % Q2 FY19 Total Income from Operations 143.5 110.7 134.7 Excise Duty 0.0 0.0 0.0 Net Revenue 143.5 110.7 29.7% 134.7 Raw Materials 106.6 80.9 98.5 Employee Cost 7.6 4.6 6.7 Other Expenses 13.2 11.7 12.8 Total Expenditure 127.4 97.2 118

7. Slide 7: Q3 FY19 Revenue Breakup – Business Verticals

   Q3 FY19 Revenue Breakup – Business Verticals* Q3 FY18 Q3 FY19 Building Energy Energy Segment, Managemen Building Manageme 5.1% t , 0.8% Segment, nt , 1.3% 6.6% Wire & Industrial Switchgear, Wire & Cable, 45.2% Industrial 48.9% Cable, 48.1% Switchgear, 44.0% • Industrial Switchgear – 44.0% of net rev

8. Slide 8: Q3 FY19 Revenue Breakup – Geographical

   Q3 FY19 Revenue Breakup – Geographical* Q3 FY18 Q3 FY19 Asia (Exclu. Middle Asia Middle India), 5.4%East, 1.3% (Exclu. East, 1.5% U.S, 5.8% U.S, 1.9% India), Europe, 7.3% 4.9% Europe, 5.5% India, India, 82.1% 84.4% * Numbers as per Ind AS guidelines 8

9. Slide 9: 9M FY19 Financial Highlights

   9M FY19 Financial Highlights* Rs. in Crore 9M FY19 9M FY18 Y-o-Y % Total Income from Operations 404.7 326.6 • 28% YoY growth in Net Excise Duty 0.0 10.6 Revenue - mainly driven by wires & cables and Net Revenue 404.7 316.0 28.1% building segments Raw Material Expenses 301.2 231.8 Employee Expenses 2

10. Slide 10: 9M FY19 Revenue Breakup – Business Verticals

    9M FY19 Revenue Breakup – Business Verticals* 9M FY18 9M FY19 Building Energy Building Energy Segment, Managem Segment, Managem 4.8% ent , 1.2% 7.8% ent , 2.0% Wire & Wire & Industrial Cable, Cable, Industrial Switchgear 48.5% 48.5% Switchgear , 45.5% , 41.8% • Industrial Switchgear – 41.8% of net r

11. Slide 11: 9M FY19 Revenue Breakup – Geographical

    9M FY19 Revenue Breakup – Geographical* 9M FY18 9M FY19 Middle Asia (Exclu. Middle Asia (Exclu. East, 1.4% India), East, 1.7% U.S, 4.4% India), 6.9% U.S, 2.4% 6.9% Europe, Europe, 4.6% 5.5% India, 81.8% India, 84.4% * Numbers as per Ind AS guidelines 11

12. Slide 12: Balance Sheet as on 30th Sept'18

    Balance Sheet as on 30th Sept’18 As on 30th As on 30th As on 30th As on 30th Rs. Crs Rs. Crs Sept’18 Sept’17 Sept’18 Sept’17 Equity 275.6 243.6 Non-current assets 213.4 187.8 15.9 14.5 Property, Plant and Equipment 169.3 140.6 Equity Share Capital Capital work in progress 1.7 8.5 Other Equity 259.7

13. Slide 13: Company Overview

    Company Overview Salzer Electronics Limited Investor Presentation FY17

14. Slide 14: Company Overview

    Company Overview Leading player offering total and customized electrical solutions  Presence in Industrial Switchgears, Wires & Cables and Energy management business  Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share Extensive Product portfolio across verticals St

15. Slide 15: From a Single Product Company…

    From a Single Product Company…  Unit I (Coimbatore) –  Leading player offering total manufacture contactors, and customized electrical relays, panels, energy savers solutions  Starting of long term  More than 15 different association with L&T products  Technical collaboration with  2,000 emplo

16. Slide 16: Professional Management

    Professional Management • Core Promoter for over 2 decades of experience R.Doraiswamy • Qualified Electrical Engineer and Technocrat Entrepreneur Managing Director • Vast Experience in Foreign Collaboration & wide global contacts D.Rajeshkumar • Electrical Engineer , India; Post Graduate in Business

17. Slide 17: Business Overview

    Business Overview salzer’

18. Slide 18: Business Overview

    Business Overview Copper products Industrial Switch Gear Products  Wires & Cables  Transformers  Flexible Bus Bars  Terminal Blocks  Enamelled Wires  Rotary Switches  Bunched Conductors  Isolators  Tinned Copper Wires  General Purpose relays  Wiring Ducts  MPCB’s  Contactors & OLR’s  C

19. Slide 19: Wide Product Suite – Industrial Switch gears

    Wide Product Suite – Industrial Switch gears Products Features  More than 75 sizes Cable Ducts/ Wire Ducts  India’s largest RoHS and Halogen Free Ducts UL and CSA Listed  6A to 400 Amps Rotary Switches  > 2500 ranges  UL & CB Tested  16 to 250 Amps  UL 50 rated Enclosed mounting Isolators (Di

20. Slide 20: Wide Product Suite – Industrial Switch gears

    Wide Product Suite – Industrial Switch gears Products Features  16 to 250 Amps  UL 50 rated Enclosed mounting Contractors & Overload Relays  Changeover Switches  DC – PV Isolators  CB Tested Two Frames Motor Protection Circuit  0.1 amps to 63 Amps Breaker(MPCB)  Type F Co-ordinated  UL Liste

21. Slide 21: Wide Product Suite – Building Products

    Wide Product Suite – Building Products Products Features  Unique - patented design - Contactor based Automatic Source Changeover ACCL with Current Limiter  Heavy Duty - AC 32A and AC22A utilization category  Easy to Install Distribution Board  User Friendly  Durable  High Performance – 10KA Mi

22. Slide 22: Wide Product Suite – Copper Products

    Wide Product Suite – Copper Products Products Features From 0.5- 240 Sq mm  Single & Multi Core PVC Insulated Copper wires &  FR, FRLS, Halogen Free Cables  UL Listed Upto 1000 Amps  Only Manufacturer in India Flexible Busbars  UL Listed  Power Cable Harness  Control cable harness Wire Harnes

23. Slide 23: Wide Product Suite – Energy Mgmt. Services

    Wide Product Suite – Energy Mgmt. Services • Increases lamp-life by an average of 20% for HPSV lamps • 30% reduction in energy consumption under normal Energy Saver working conditions • Reduces the power consumption by optimizing the & Panels voltage to the lamps • State of the art GSM/ GPRS technol

24. Slide 24: Wide Product Suite- Customised for OEM's

    Wide Product Suite- Customised for OEM’s CT’s Terminal Socket Coils / Inductors Panels In-house manufacturing and R&D enables superior customization of products 24

25. Slide 25: Key Strengths

    Key Strengths Wide Product Suite  Amongst few players in India, to offer total & customized electrical solutions  Wide product basket – 15 products developed in-house Complete Backward Integration  Largest manufacturer and market leader in CAM operated rotary switches  In-house manufacturing fac

26. Slide 26: Four Manufacturing facilities...

    Four Manufacturing facilities... UNIT I UNIT 2 UNIT 3 UNIT 4 • Rotary Switch • Toroidal Transformers • Wiring Accessories • Wires & Cables • Contactors & Relays • Isolators (Dis-connectors) • Flexible Bus Bars • Panel Assembly • Terminals • Bunched Conductors • Lighting Energy Savers • Wiring Ducts

27. Slide 27: ...With In-house process capabilities

    ...With In-house process capabilities... • Full fledged Type testing laboratory • In-house tool room facility for manufacturing and – Loads up to 500Amps servicing of Moulds and press tools – Environmental test chamber for humidity test – CNC Wire Cut Machines and Spark erosion machines – Salt spray

28. Slide 28: ...And a strong R&D team

    ...And a strong R&D team R&D expenses (Rs crore) • In-house R&D Center − More than 35 engineers 8.4 − Recognized by Department of Science, Govt of India 7.8 • Patented Rotary switches 5.7 • 5 patents in process − Manual Single Phase Starter with no voltage tripping, Energy 4.3 Saver System for Stree

29. Slide 29: Internationally certified ... Across entire product portfolio

    Internationally certified ISO 9001 ISO 14001 ISO 18001 CE Certification UL Certification CB certification RoHS Intertek Semko approval CSA Certification ISO 16949 ... Across entire product portfolio 29

30. Slide 30: Blue Chip Customers

    Blue Chip Customers • Technical Tie-up with American Company • Marketing Tie-up with L&T for Indian Market C3Controls, to manufacture & market contactors & over load relays. • Largest supplier of rotary switches to Indian • Technical Tie-up with Trafomodern for Three Phase Railways. Transformers • P

31. Slide 31: Wide Distribution Network

    Wide Distribution Network International • Direct network across 50 countries − 23% of sales from global distribution − 40 international distributors • Plans to expand in US, Africa and Middle east Domestic • Tie up with L&T – access to more than 350 dealers in India • Direct network for Modular Swit

32. Slide 32: Way Ahead

    Way Ahead salzer

33. Slide 33: Future Growth Drivers

    Future Growth Drivers Growth and expansion of existing product verticals Margin improvement through  Increase sales of high margin products – existing and new  Increase exports – fast growing markets of US, Africa and Middle East Venture into new project/ product development 33

34. Slide 34: 2017-18 – Proposed new products to be launched

    2017-18 – Proposed new products to be launched  Product developed and Invoicing started Wire Harness & Consoles  Industrial Wire Harnessing - Very good potential in Indian Market  Value Addition for Wires & Cables.  New & different set of customers bringing new opportunities  Secured 10 Year co

35. Slide 35: Future Growth Drivers- Energy Mgmt. Business

    Future Growth Drivers- Energy Mgmt. Business Only manufacturer in India:  Energy savers  Street light controllers CRISIL rated Grade I ESCO Operator for street lighting Significant opportunity in power starved country Successfully implemented for:  Madurai Corporation  Coimbatore Corporation  N

36. Slide 36: Thank You

    Thank You SALZERELEC 517059 SZE IN SALZ.BO For further information, please contact: Company : Investor Relations Advisors : Salzer Electronics Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Baskarasubramanian Ms. Savli Mangle baskarasubramanian@salzergroup.com savli@bridge-ir.com www.salzergroup.net w

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