Slide 1: Exchange filing cover letter for investor presentation
To To BSE Limited The Manager Corporate Relationship Department Listing Department PJ towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra – Kurla Complex, Mumbai -400001 Bandra (EAST), Mumbai – 400051 BSE SCRIP CODE: 543896 NSE Symbol: AVALON Sir(s)/Madam, Sub
Slide 2: Earnings Presentation Q1FY25
August 2024 Earnings Presentation Q1FY25 www.avalontec.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Avalon Technologies Limited(the “Company”), solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person a
Slide 4: Table of Contents
Table of Contents Business Highlights Financial Highlights Strategy Company Overview Annexures | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 3
Slide 5: 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 575k+*sq.ft. Design & Located
Slide 6: Business Highlights
Business Highlights Key events Order book + Long-term contracts increased 43.5% YoY 44% INR 1,461 Cr # Box-build Revenue Order book Generated Operating Cashflows of INR 36 Cr in Q1 FY25 6.5% INR 985 Cr * In Q1, payable & receivable days improved by 7 & 4 days RoCE Long–term Contracts respectively. O
Slide 7: Financial Highlights – Q1 FY25
Financial Highlights – Q1 FY 25 (INR Cr.) Order Gross Margin EBITDA PAT Book Q1 FY 25 Q1 FY 25 Q1 FY 25 30th June 2024 Revenue 66 YOY% 4 YOY% -2 YOY% 1,461 YOY% 17.2% 73.0% 132.6% 32.1% Q1 FY 25 80 Q1 FY 25 16 Q1 FY 25 7 Q1 FY 25 1,106 Q1 FY 24 Q1 FY 24 Q1 FY 24 30th June 2023 199 YOY% 33.2% YOY% 2.
Slide 8: Financial Highlights – Q1 FY25
Financial Highlights – Q1 FY25 (INR Cr.) Gross Revenue Margin Q1 FY 25 199 Q1 FY 25 33% 8% 434 Q4 FY 24 217 15% Q4 FY 24 38% Bps 82 Bps Q1 FY 24 235 Q1 FY 24 34% EBITDA PAT Q1 FY 25 2% Q1 FY 25 - 1% 574 435 Bps Bps 407 Q4 FY 24 8% 469 Q4 FY 24 3% Bps Bps Q1 FY 24 7% Q1 FY 24 3% | www.avalontec.com 7
Slide 9: Income Statement
Income Statement (INR Cr.) Particulars Q1 FY25 Q1 FY24 YoY Change Q1 FY25 Q4 FY24 QoQ Change Revenue from Operations 199 235 -15.2% 199 217 -8.0% Cost of Goods Sold 133 155 -14.1% 133 135 -1.6% Gross Margin 66 80 -17.2% 66 81 -18.6% Gross Margin (%) 33.2% 34.0% -82 Bps 33.2% 37.5% -434 Bps Personnel
Slide 10: Financial Metrics - I
Financial Metrics - I (INR Cr.) 27.2% 24.6% 10.4 10.0% 9.4 Asset Turn RoCE (%) 8.3 8.0 6.5% FY 22 FY 23 * FY 24* Q1FY 25 FY 22 FY 23 FY 24 Q1FY 25 306 294 164 Gross Debt Net Debt to 143 2.9 EBITDA 2.7 -0.3 -1.2 Mar’22 Mar’23 Mar’24 Jun’24 FY 22 FY 23* FY 24* Q1FY 25 *Calculated excluding IPO cash pr
Slide 11: Financial Metrics - II
Financial Metrics - II Receivables days 125 Inventory days 118 106 89 80 79 77 75 Trade Mar’22 Mar’23 Mar’24 Jun’24 Mar’22 Mar’23 Mar’24 Jun’24 161 144 156 Trade Payables 122 Capital Days Net Working 43 41 43 36 days Mar’22 Mar’23 Mar’24 Jun’24 Mar’22 Mar’23 Mar’24 Jun’24 | www.avalontec.com 10
Slide 12: 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 13: Global Customer Relationships – Revenue by Geography
Global Customer Relationships Revenue split based on Customer geography Q1FY 2025 INDIA – 40% US – 60% FY 2024 INDIA – 46% US – 54% | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 12 10
Slide 14: Industry Outlook
Industry Outlook 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” strategy • Increa
Slide 15: Industry Outlook – Global EMS Market Opportunity
Industry Outlook 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 Share Chang
Slide 16: 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 40% 60% markets – India & US India USA Collaborate, Grow wall
Slide 17: Balance Sheet
Balance Sheet (INR Cr.) Assets FY24 FY23 Equity and liabilities FY24 FY23 Property, plant and equipment 104 91 Shareholder's equity 547 537 Capital work in progress 20 15 Borrowings 53 66 Right-of-use / intangible assets 43 37 Lease liabilities 35 29 Other financial liabilities 0 1 Financial assets
Slide 18: Cashflow Statement
Cashflow Statement (INR Cr.) Particulars Mar’24 Mar'23 Operating profit before working capital changes 38 73 Changes in working capital -41 -112 Cash generated from operations 34 6 Direct taxes paid (net of refund) -16 -19 Net Cash from Operating Activities (A) 17 -13 Net Cash from Investing Activit
Slide 19: Avalon Group - Overview
Avalon Group - Overview
Slide 20: Avalon's varied product applications
Telecom, satellite Aircraft engine systems and digital parts infrastructure Avalon’s varied Medical devices product applications Products for defense across many end use application industries Clean energy with presence in solar, Signaling and braking hydrogen and systems for railways electric vehic
Slide 21: 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 22: Today – End-to-end Product Offering
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 44% of revenues in Q1 FY25 1 3 5 7 9
Slide 23: Why Avalon – Our Key Differentiators
Why Avalon Our Key Differentiators Vertical Integration Global Mfg. & Delivery Clean Energy PCB Design and Analysis New Product Development PCB 12% 88% US1 India1 Assembly Cable Assembly & Wire Harnesses Magnetics 1 Sheet Metal Fremont Fabrication & , CA Chennai, Machining India 10 1 Injection Molde
Slide 24: Our Positioning
Our Positioning 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 (Commun Medica
Slide 25: Clean Energy
Clean Energy 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 clean e
Slide 26: High Mix Products (1/2)
High Mix Products (1/2) 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 Prod
Slide 27: High Mix Products (2/2)
High Mix Products (2/2) 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 ▪ Con
Slide 28: Awards & Recognition
Awards & Recognition Numerous Awards Stand Testimony of Performance Collins Faiveley Indo – American Aerospace Transport Chamber of Commerce Best Supplier Supplier Award for Excellence Best export demonstrated Award for performance to sustained Strategic the US performance Partnership Runner-up of
Slide 29: Client Delivery Model (1/2)
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 | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 28 21
Slide 30: Client Delivery Model (2/2)
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 29 22
Slide 31: Global Manufacturing Footprint
Global Manufacturing Footprint Serve Customers Locally and Leverage Hybrid Model of Delivery Accredited with Global Quality Standards and Certifications Global manufacturing presence with state-of-the-art manufacturing facilities Atlanta, US Bengaluru, India 1 2 Chennai, India Fremont, US 10 1 Numb
Slide 32: 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 31 47
Slide 33: Key Management Personnel
Key Management Personnel Strong Management Team with Proven Track Record of Performance and Sound Cross-functional Expertise Decades of experience in the EMS industry Instrumental in Avalon’s growth Shriram Vijayaraghavan Kesavan P Michael Robinson Savita R Ganjigatti RM Subramanian Chief Operating
Slide 34: Experienced Board of Directors
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 Lt
Slide 35: Annexures
Annexures
Slide 36: Shareholding Pattern
Shareholding Pattern Share Information (As on June 30, 2024) 3% FPI NSE Ticker AVALON Share Information BSE Ticker (As on June 30, 2023) 543896 51% NSE Market Cap (INR Cr) 3,558 Promoter group 23% % free-float 80.14% Public Free-float market cap (INR Cr) 2,851 Shares Outstanding 6,57,63,679 23% DII El
Slide 37: Consolidated Profit and Loss
Consolidated Profit and Loss (INR Cr.) Particulars FY21 FY22 FY23 FY24 Revenues from operations 691 841 945 867 Other income 5.4 11 15 15 Total income 696 852 959 882 Cost of raw materials consumed 436 561 614 552 Changes in inventories of finished goods, work-in-progress 20 -7 -17 1 Employee benefi
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet (INR Cr.) Assets FY21 FY22 FY23 FY24 Equity and liabilities FY21 FY22 FY23 FY24 Tangible Assets 83 91 106 124 Shareholder's equity 28 89 537 547 Right-of-use / intangible assets 21 25 37 43 Borrowings 81 74 66 53 Financial assets 4 5 5 22 Lease and Other non-current liabil
Slide 39: Overview of Products and Capabilities – Injection Molded Plastics
Overview of Products and Capabilities Injection Molded Plastics Plastics Gallery We serve our customers from the injection molding plastic business in various industries including aerospace, industrial and power | www.avalontec.com 38
Slide 40: Overview of Products and Capabilities – End-to-End Box Build
Overview of Products and Capabilities End-to-End Box Build System Integration Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 39 10
Slide 41: Overview of Products and Capabilities – PCB Assembly
Overview of Products and Capabilities Printed Circuit Board Assembly PCB Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 40 11
Slide 42: Overview of Products and Capabilities – Cable Assembly
Overview of Products and Capabilities Cable Assembly and Wire Harnesses Cables & Wire Harnesses | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 41 12
Slide 43: Overview of Products and Capabilities – Sheet Metal Fabrication
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Aerospace Sheet Metal Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 42 13
Slide 44: Overview of Products and Capabilities – Sheet Metal & Machining
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Sheet Metal & Machining Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 43 14
Slide 45: Overview of Products and Capabilities – Magnetics
Overview of Products and Capabilities Magnetics Magnetics Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 44 15
Slide 46: Glossary
Glossary
Slide 47: Glossary
Glossary Term Description Term Description Avalon Avalon Technologies Ltd. IoT Internet of Things ATS Avalon Technologies and Services M.Com Masters in Commerce B.Com Bachelors in Commerce MA Masters in Arts B.Tech Bachelors in Technology MBA Masters in Business Administration B2B Business to Busine