Slide 1: Stock exchange cover letter
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2022-23/30 May 30, 2022 To, The Manager- Listing Th
Slide 2: Financials Results Q4 FY22
Varroc Engineering Limited Financials Results Q4 FY22 30 May 2022 INTERNAL
Slide 3: Disclaimers
Disclaimers Click to edit Master title style 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 developme
Slide 4: Contents
Contents Click to edit Master title style 1. Highlights & Overview of Varroc Group 2. Financials 3. Technology and Opportunity in Mega Trends 4. Content, Kit Value & New Business Win 5. ESG, Awards & Accolades 6. Detailed P&L 7 Appendix: Discontinued Operations (4-Wheeler Lighting Business Europe &
Slide 5: Highlights
Highlights Click to edit Master title style SPA signed in April’22 with Plastic Omnium to divest the 4W Lighting Business in Europe & America for 1. Enterprise Value of Euro 600 Million Application for Production Linked Incentive (PLI) scheme approved by the Government; target 2. investment of appro
Slide 6: #1 Overview
Varroc Group: #1 Overview
Slide 7: Overview of Continuing Operations of Varroc Group (Post Divestment)
Overview of Continuing Operations of Varroc Group (Post Divestment) Click to edit Master title style Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures Overseas Subsidiaries India Subsidiaries’ & JV ● Varroc TYC (Chi
Slide 8: Board & Leadership Team
Board & Leadership Team Click to edit Master title style Marc Szulewicz Arjun Jain T. R. Srinivasan Ex-General Manager, Foreign President – Electrical Group Chief Financial Officer equipment division, Plastic Omnium Business Unit and • Total Experience: ~33 years Whole-time Director • Previously ass
Slide 9: Global Business with Diversified Product Lines
Global Business with Diversified Product Lines Click to edit Master title style Lighting Business Asean PV & Global /Indian 2W= Lighting Polymer Varroc’s India Business Electrical & Electronics Metallic Other IMES • Offers complete solutions in • Supplies precision forged & machined • Manufactures h
Slide 10: Metallic Business Unit (MBU)
Metallic Business Unit (MBU) Click to edit Master title style Strengths Focus Area • Forging Capacity Ranging from 100 T to 8000 T • Building capability for various components required in EV • State of the art equipment to produce components with very critical tolerance • Sodium filled valves reduce
Slide 11: Lighting Business
Lighting Business Click to edit Master title style Strengths Focus Area • First to market efficient and stylish lighting • Further Strengthen our position as Global 2 wheeler • Smart LED lighting (HL&TL) Compactness lighting player and Increase our presence in Asia in 4 • Matrix Concept wheeler ligh
Slide 12: Polymer Business Unit (PBU)
Polymer Business Unit (PBU) Click to edit Master title style Strengths Focus Area • Advanced Manufacturing Process resulting into SOP of new • Building capability for development of Green Bio-Carbon products like tail gate, sun roof, roof rail & accessories. Material. • Added new customers like MG/W
Slide 13: Electrical-Electronics Business Unit (EBU)
Electrical-Electronics Business Unit (EBU) Click to edit Master title style Strengths Focus Area • Successful launch of EV products • Keep up the pace with aggressive technological • Product Engineering and Affordable Electronics development to capture the opportunity Mega Trends are Operations rema
Slide 14: Aftermarket Division (AMD)
Aftermarket Division (AMD) Click to edit Master title style Revenue Breakdown Segment Region wise Revenue FY22 Revenue Approx. Rs.4760 mn (FY2022) 2 Wheeler 3 Wheeler 4 Wheeler Hiker - India 4760 - Asean Geography 3680 - Africa - Latin America 2980 West, 27% Export, 24% C.D.I, Starter Motors, Carbon
Slide 15: #2 Financials
#2 Financials
Slide 16: India Automotive Production Volumes
India Automotive Production Volumes (21.0%) Click to edit Master title style 5.65 (3.5%) Q4 FY22 vs Q4 FY21 17.71 18.35 FY2022 vs FY2021 4.46 (1.9%) (19.2%) 1.08 1.06 3.65 (1.9%) (1.9%) (23.3%) 3.06 (28.9%) 0.20 0.21 0.27 0.24 0.76 0.61 0.81 0.62 2 Wheeler 3 Wheeler Passenger Vehicle Commercial Vehi
Slide 17: Financials for Continuing Operations
Financials for Continuing Operations Click to edit Master Rs. In Million Quarterly Revenue title style Q4 FY22 Q3 FY21 Q4 FY21 FY 2022 FY 2021 Revenue for Full Year 16520 58442 14886 15043 Total Revenue 16,520 14,886 15,043 58,442 43,739 43739 EBITDA* 1,071 744 1,282 3,593 3,380 EBITDA % 6.5% 5.0% 8
Slide 18: Revenue Breakdown for FY22 for Continued Operations by Business Unit
Revenue Breakdown for FY22 for Continued Operations by Click to edit Master title style Business Unit Segment Aftermarket, IMES, 5.1% Others, 5.1% 8.5% MBU, 12.0% 4W, 20.9% Lighting, EBU, 19.8% 21.4% 2W 3W, 8.1% Motorcycle, 61.1% PBU, 33.1% 2W Scooters, 4.8% Geography Customer Outside India, 21.3% B
Slide 19: Varroc Group Performance
Varroc Group Performance Click to edit Master Rs. In Million Q4 FY22 title Q3 FY22 style Q4 FY21 FY 2022 FY 2021 India Operations Revenue 12,437 12,088 12,249 46,753 36,466 EBITDA Margin* 9.8% 9.1% 10.9% 8.6% 10.0% VLS Remaining Operations Revenue 3,283 2,190 2,286 9,418 5,890 EBITDA Margin* 0.5% -9
Slide 20: Net Debt Position for the Group
Net Debt Position for the Group (Continued + Discontinued) Click to edit Master title style Net Debt as on 31st March 2022 Net Debt 12.1 30.1 8.4 5.9 27.7 26.4 26.5 Standalone plus Indian Overseas Continued VLS Discontinued Operations Subsidiary Operations Jun-21 Sep-21 Dec-21 Mar-22 Please note tha
Slide 21: #3 Technology and Opportunity in Mega Trends
#3 Technology and Opportunity in Mega Trends
Slide 22: Strong In-house Technology, Innovation & R&D Capabilities
Strong In-house Technology, Innovation & R&D Capabilities Click to edit Master title style R&D efforts are directed towards ongoing trends Increased Use Stricter Electrification Autonomous Connectivity Digitalization & Sustainability, of Electronics Environmental Driving IoT Reliability & Regulation
Slide 23: Electric Vehicles Transition and Changes in Emission Norms
Electric Vehicles (“EV”) Transition and Changes in Emission Norms Click to edit Master title style Ongoing Trends in India • Varroc has recently entered high growth 2W BSVI Transition: EV market: Transition to Electric Vehicles 72-74% CAGR over Increasing content per vehicle FY21E-FY26P(1) EFI syste
Slide 24: EV business won so far: Highlights & Updates
EV business won so far: Highlights & Updates Click to edit Master title style Industry product price expectations Total @ Installed Expected revenue in FY25 for current Component based on Capacity business based on SOB Investec Research (Rs (Rs Crs) # and industry price per 2W) * (Rs Crs) Traction m
Slide 25: #4 Content, Kit Value and New Order Win
#4 Content, Kit Value and New Order Win
Slide 26: Diversified 2W Portfolio
Diversified 2W Portfolio Click to edit Master title style Diversified Portfolio Catering to 2W and 3W Segments Handlebar Speedometer Assembly Switch Mirror Assembly Lever-holder Motor Controller Seat Foam Assembly Instrument Cluster Seat Base Handlebar Assembly Speedometer Cover Utility Box Seat Cow
Slide 27: Current Kit Value in Wheeler
Current Kit Value in 2 Wheeler Click to edit Master title style 30081 12294 11448 8490 7936 7273 5369 Upto 110 CC >110 - 135 CC > 135 -175 CC > 175 - 225 CC > 225 - 300 CC > 300 CC EV Scooter Please Note:- Maximum content which the Company is giving in above category 26
Slide 28: Current Kit Value in other Segment
Current Kit Value in other Segment Click to edit Master title style 43,538 19,555 18,103 16,275 7,132 3 Wheeler 3 Wheeler EV Passenger Vehicle Commercial Vehicle Off-Roaders 27
Slide 29: New Business Order wins in FY22
New Business Order wins in FY22 (lifetime revenues of Rs. 35,059 Million) Click to edit Master title style Annual Peak Revenue win of Rs.7,460 Million Lifetime Revenue win from ICE & EV Players Lifetime Revenue win of Rs.35,059 Million Start of Production 18871 EV, 10,451 11512 4123 4675 2588 ICE, 2
Slide 30: #6 ESG, Awards & Accolades
#6 ESG, Awards & Allocades
Slide 31: Focus on Environment, Social and Corporate Governance
Focus on Environment, Social and Corporate Governance • Varroc is committed towards interweaving sustainable environmental, social and governance practices into it’s business strategies and is well on it’s way to create long- term value for all the stakeholders. • In September 2008, Varroc launched
Slide 32: Awards & Accolades
Awards & Allocades Received the ‘New Part Development Award’ by Honda Motorcycle and Scooter India Private Named as one of the ‘Top 100 Companies’ Limited in Czech Republic Given the ‘Supplier Quality Excellence Award’ by General Motors Presented with an award for ‘Electrical and Electronics Excelle
Slide 33: #6 Detailed P&L
#6 Detailed P&L
Slide 34: Detailed P&L
Detailed P&L Click to edit Master title style Rs. In Million Q4 FY22 Q3 FY22 Q4 FY21 FY 2022 FY 2021 Revenue from Continued Operations 16,519.9 14,886.1 15,043.5 58,442.0 43,738.8 Other Income 95.6 84.9 347.4 339.3 1,157.4 Total Revenue 16,615.5 14,971.0 15,390.9 58,781.3 44,896.1 Raw Material 11,21
Slide 35: #7 Appendix
#7 Appendix
Slide 36: Rationale & Major Milestones for Closing the Divestment
Rationale & Major Milestones for Closing the Divestment Click to edit Master title style Rationale Closure of the Divestment expected by Sept’22 Significant impact on the operating performance of the Varroc Lighting Systems business due to Covid-related disruptions from early 2020 Shareholders Appro
Slide 37: Financials for Dis-Continued Operations
Financials for Dis-Continued Operations Click Rs.toIn Million edit Master Q4 FY22 title Q3 FY21 style Q4 FY21 FY 2022 FY 2021 Revenue 19,730 16,463 21,149 68,899 69,289 EBITDA -540 -695 -213 -3,130 481 EBITDA % -2.7% -4.2% -1.0% -4.5% 0.7% PBT -2,493 -2,547 -1,951 -10,349 -6,248 PAT -2,524 -2,668 -1
Slide 38: Varroc Group
Click to edit Master title style Confidential - Varroc Group 37