Slide 1: Investor Presentation
Investor Presentation © Zen Technologies Ltd Confidential
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties rela
Slide 3: Zen…The Way Ahead
Zen…The Way Ahead Zen - the Way Ahead
Slide 4: Make in India - Defence
Make in India - Defence • What does Make in India in Defence mean? • Why Indigenously Developed is more important than Licensed and Bought-out Technology? • Will the New Govt Buy Indigenously Developed Defence products? • How do you identify indigenously developed defence products? © Zen Technologie
Slide 5: How do you identify indigenously developed products and technologies?
How do you identify indigenously developed products and technologies? • R&D Expenditure? • In-house R&D recognition by DSIR – since when? • Products Realized? • Govt of India funding for the projects? • % of Staff in R&D? • Indian and International Patents Held? © Zen Technologies Ltd Confidential
Slide 6: We can tell our values by looking at our checkbook stubs - Andy Grove
We can tell our values by looking at our checkbook stubs - Andy Grove © Zen Technologies Ltd Confidential
Slide 7: Zen's R&D Commitment
Zen’s R&D Commitment • 2013-14 & 2014-15: Rs 20.66 Cr (>40%) & Rs 13.07 Cr • Source of funds: Internal Accruals • Total Staff: 243; R&D: 97 • More than 30 simulators realized • Indian and Int’l Patents Approx Held/Filed: >13/55 • DSIR and TDB funded projects • National Technology Award Winner in 201
Slide 8: Focus on R&D
Focus on R&D: Rs in Crores R&D 2013-14 2014-15 Revenue expenditure 14.85 12.92 Capital expenditure 5.81 0.15 Total 20.66 13.07 © Zen Technologies Ltd Confidential
Slide 9: More Than 30 Simulators…
More Than 30 Simulators… ZEN AWeSim ZEN TacSim UAV Mission ZEN ATGM Simulator ZEN ArtyFOS ZEN 81mm IMS ZEN HE36S ZEN BMP II IMS ZEN MMHG ZEN Tank Simulator ZEN MFTS Smart Target System Confidential
Slide 10: Orders Pending Execution
Orders Pending Execution: The total value of orders pending as on 31 March 2015 is around Rs 118.94 Cr including AMCs worth Rs 79.04 Cr Currently in race for Orders Worth Rs 500-750 Cr. Results to be known starting Q2FY16. AMCs will be executed over a period of 5 years after the expiry of warranty p
Slide 11: Defence Opportunity for Zen
Assets off-Balance Sheet Defence Opportunity for Zen Selected Simulators Armour Combat Training Simulators UAV Sim Tactical Engagement Sim Infantry Weapons Training Sim Driving Sim AGL & MMG Sims 81mm Integrated Mortar Simulator RS 6,000 CR. OPPORTUNITY SIZE © Zen Technologies Ltd Confidential
Slide 12: Additional Opportunities
Additional Opportunities • Combat Training Centres • Aviation Simulation • Exports • Offsets © Zen Technologies Ltd Confidential
Slide 13: Combat Training Centre
Combat Training Centre • From Individual to Group Training • From Basic Marksmanship to Tactical and War Scenarios • Each Solution Upwards of Rs 50-60Cr. • Customized from Police, Special Forces and Army Needs 13
Slide 14: Aviation Simulators
Aviation Simulators • No Credible Domestic Players • Preference for Indigenous Solutions • Need Some Expertise to Fill the Gap* • Hired A Team with Knowledge – Kamath HJ • Located in Bangalore © Zen Technologies Ltd Confidential
Slide 15: Exports - Opportunity
Exports - Opportunity • Eurosatory Experience • Opportunity as Preparedness is Becoming Important in Europe, Middle East, Africa, etc • Cost/Availability of Sims Prohibitive/Difficult • Hire Marketing Team • Showcase in Exhibitions • Build Brand © Zen Technologies Ltd Confidential
Slide 16: Exports - Existing R&D
Exports - Existing R&D • Africa, Middle-East, LatAm, etc. • NATO and other markets Compliant Specs • Features to Make Target Country Acceptable • Rigorously Test the Products • Participate in Exhibitions • Tie-up with Strong Partners * © Zen Technologies Ltd Confidential
Slide 17: Gaps
Gaps • Aviation Expertise Gaps • Exports Global Footprint Partner • Enter: Rockwell Collins • 3 Main Points in the MoU © Zen Technologies Ltd Confidential
Slide 18: Offsets
Offsets • 30% Obligation of Overseas Vendors • Difficult to Fulfill • New Opportunity for Zen • 1.5x Higher Offset Credit • Zen Products – A Ready Made Solution • Expect Great Demand for this Option • Aggressively Marketing it to Vendors © Zen Technologies Ltd Confidential
Slide 19: Competition
Competition • PSUs • Large Private Companies • Foreign Companies – Saab, Thales – Cubic Defence, Megitt Confidential © Zen Technologies Ltd
Slide 20: It's not the size of the dog in the fight, it's the size of the fight in the dog
It's not the size of the dog in the fight, it's the size of the fight in the dog - MARK TWAIN Confidential © Zen Technologies Ltd
Slide 21: Chinese Bamboo Tree
Chinese Bamboo Tree • After the seed for this amazing tree is planted, you see nothing, absolutely nothing, for four years except for a tiny shoot coming out of a bulb. During those four years, all the growth is underground in a massive, fibrous root structure that spreads deep and wide in the earth
Slide 22: Key Milestones
Key Milestones 1993 Incorporation 1996 ZEN SATS 1998 In-house R&D recognition by Govt of India 2002 AWeSIM 2004 Driving Training Simulator 2006 BMP DS & BMP IMS 2008 Live Simulation – TacSim 2011 Tank Simulator (BG, CG, & DS) 2013 UAV Simulator 2014 ACTS; Combat Training © Zen Technologies Ltd Centr
Slide 23: Risks and Concerns
Risks and Concerns: • Caveat: Risks with Forward Looking Statements • More players entering the field of simulation • No commitment from the end-users • No promise of matching income • Government policy • Performance guarantee to our clients • Dependence on Government • High R & D Costs • Long recei
Slide 24: Questions
• Questions • investors@zentechnologies.com © Zen Technologies Ltd Confidential