Slide 1: Cover letter to National Stock Exchange of India
To National Stock Exchange of India Ltd., Exchange Plaza, Plot No. C/1,G Block, Bandra-Kurla Complex, Bandra (E) Mumbai — 400 051 No. 17565/6/SE/NSEC/SEC 20" September 2017 Dear Sir/Madam, wy BHARAT ELECTRONICS ard sceeiaa fates (ART UHR HT VE, Yel Fae) doitpa orate : arsex Ra WS, ATTART, HTX - 560
Slide 2: Presentation on Bharat Electronics Limited
Presentation On Bharat Electronics Limited
Slide 3: Navratna PSU Manufacturing Network, Subsidiary & JVs
Navratna PSU Manufacturing Network • Established in 1954 under MoD • R&D / Technology driven Company operating in competitive Defence Electronics area • Manpower: 9716 Employees Panchkula Kotdwara Ghaziabad Subsidiary & JVs Navi Mumbai • BEL Optronics Devices Ltd Pune & BELOP Hyderabad • Night Visio
Slide 4: Business Segments
Business Segments Radar Missile Systems Communication Electronic Warfare & Avionics Network Centric Systems Anti submarine Warfare Electro-Optics Tank Electronics Home Land Security Civilian Products Multi product, Multi technology company – Diverse product range
Slide 5: Research & Development (R&D)
Research & Development (R&D) • 50% Engg. Manpower deployed in R&D • 87% Sales Revenue from Indigenous R&D • R&D investment: Rs. 777 Crs during 2016-17 • CMMi Level-5 Certification for Software development • Largest Production Partner of DRDO • Patents Application Filed – 83 Patents, Granted - 07 Blu
Slide 6: R&D Investment
_w _> , R&D Investment — BEES [\ Rs Crores T10 704 ae 2014-15 2015-16 2016-17
Slide 7: Expansion & Modernization
Expansion & Modernization • 600 Crores annual CAPEX • World class Manufacturing & Test facilities • Super Components Facility • Test set up for Missile System • Antenna Test Range Facility • High Roof hangar for Radar & Antenna Integration • Modern Production setup for Airborne applications • Enviro
Slide 8: Expansion & Modernization (CAPEX chart)
Expansion & Modernization Rs Crores
Slide 9: Expansion & Modernization
Expansion & Modernization • New Radar Assembly Hangar at Ghaziabad unit for Assembly, Testing and Integration of Radar & Antenna Systems • "Blowing Sand & Dust Test Facility" at Bangalore for testing of Abrasion resistance of sub-systems mounted externally on aircraft • Pulse Current Injection Test
Slide 10: Expansion & Modernization
Expansion & Modernization • Electro Magnetic Compatibility (EMC) Chamber for system level testing facility at Bangalore • The Low Pressure Chemical Vapor Deposition equipment of the IC Wafer Fabrication Facility upgraded to handle wafers from 4 to 6 inch diameter at Bangalore • Automated Transmit /
Slide 11: Exports
Exports • Dedicated Business Unit & Marketing • Major products exported: Group for Exports • Coastal Surveillance System, VHF • Achieved USD 65 Million during 16-17 Radio (Bharati), Advanced • Export Initiatives: Composite Communication System, Sanket, Electo Optic Fire Control • Strategic alliances
Slide 12: Turnover & Profitability
Turnover & Profitability Rs Crores
Slide 13: Major orders executed during 2016-17
Major orders executed during 2016-17 Akash Weapon System Fire Control System Integrated Air Command & L70 Gun Upgrade Control System
Slide 14: Major orders executed during 2016-17
Major orders executed during 2016-17 Low Level Transportable Radar 3D Tactical Control Radar HHTI with LRF Radio Relay Frequency (LB)
Slide 15: New products introduced during 2016-17
New products introduced during 2016-17
Slide 16: New Products Introduced in 2016-17
New Products Introduced in 2016-17 Weapon Locating Radar Voter Verifiable Paper Audit Trail Mk 2 Beacon Mk III Missile Two Way Data Link
Slide 17: New Products Introduced in 2016-17
New Products Introduced in 2016-17 Gigabit Ethernet Based Ship Data Network Advanced Composite Communication System
Slide 18: New Products Introduced in 2016-17
New Products Introduced in 2016-17 Ship Based EW System (Varuna) Battle Field Surveillance System - XR
Slide 19: New Products Introduced in 2016-17
New Products Introduced in 2016-17 Hull Mounted Sonar (New Generation) Submarine Sonar Suite (USHUS 2)
Slide 20: Scenario 2017-18 & Make in India
Scenario 2017-18 & Make in India
Slide 21: Major Projects planned during 2017-18
Major Projects planned during 2017-18 • Integrated Air Command Control System • Weapon Locating Radar • Hand Held Thermal Imager with Laser Range Finder • Fire Control System • Akash Weapon System • Low Level Transportable Radar • L70 Gun Upgrade • Ship Borne EW System - Varuna • Ground Based Mobile
Slide 22: Order Book: 2017-18
Order Book : 2017-18 Major Orders Received during 2017 -18 • Voter Verifiable Paper Audit Trail (VVPAT) • Commander TI Sights for T72 • Hull Mounted Sonar for P17 • Surveillance Radar Element (SRE) • Satcom Network for NFS (Network File Server) • Passive Night Vision Devices (PNVD) Major Orders Like
Slide 23: Make in India – Expansion & Modernization initiatives
‘Make in India’ – Expansion & Modernization initiatives New infrastructure augmentation planned • Defence Systems Integration Complex, Anantapur • Micro Channel Plate Technology for NVDs • Product Development and Innovation Centre, Bengaluru • Cooled Thermal Imager – Technology • Solar Power Plants
Slide 24: Make in India & Private Industry Partnership
Make in India & Private Industry Partnership • 88% of Sales Revenue from Indigenous technology • BEL is focusing more on core areas and R&D, all non-core areas are being outsourced to Indian Industries including MSMEs • Outsourcing and Vendor Development Policy has been released • IDDM Clause incorp
Slide 25: Future Outlook
Future Outlook • BEL to continue indigenisation efforts in keeping with ‘Make in India’ initiative • Radars, Missile Systems, Communication & Network Centric Systems, Tank Electronics, Gun Upgrades, Electro-Optic Systems and Electronic Warfare & Avionics Systems to drive BEL’s growth • Capacity enha
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Slide 27: Financial section divider
Taf oR BAF NAFA BHARAT HLECTRONICS
Slide 28: Financial Highlights 2016-17
Financial Highlights 2016-17 Turnover registered a growth of 17.02% from ` 7,541.17 Crores in 2015-16 to ` 8,824.70 Crores in 2016-17. Value of Production has increased from ` 7,384.83 Crores in 2015-16 to ` 8,703.32 Crores in 2016-17. An increase of 17.85%. Profit after tax rose by 18.37% fro
Slide 29: Financial Highlights 2016-17
Financial Highlights 2016-17 Earning Per Share has increased from ` 5.45 in 2015-16 to ` 6.64 in 2016-17. Book Value per Share has decreased from ` 37.43 in 2015-16 to ` 33.62 in 2016-17. Net Worth has decreased from ` 8,983.60 Crores in 2015-16 to ` 7,508.54 Crores in 2016-17. Buy Back of 1
Slide 30: Gross Turnover, Export Turnover, PBT and PAT
GROSS TURNOVER (` in Crores) EXPORT TURNOVER (` in Crores) 8825 558 7541 6174 6695 6012 432 358 246 163 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 PROFIT BEFORE TAX (PBT) (` in Crores) PROFIT AFTER TAX (PAT) (` in Crores) 2029 1732 1548 1307 1467 1167 1175 890 93
Slide 31: Material Consumption and Employee Benefits Expense
MATERIAL CONSUMPTION TO VOP 65.19% 59.00% 56.43% 55.52% 54.99% 2012-13 2013-14 2014-15 2015-16 2016-17 EMPLOYEE BENIFITS EXPENSE TO TURNOVER (` in Crores) 18.48% 18.88% 20.00% 1,400 16.67% 17.55% 19.00% 1,200 16.68% 18.00% 17.00% 1,000 16.00% 800 1,548 15.00% 600 1,264 1,257 14.00% 1,111 1,030 13.00
Slide 32: How a Rupee Earned is Distributed
2016-17 HOW A RUPEE EARNED IS DISTRIBUTED Profit After Tax; 17.78% Tax Provisions; 5.54% Depreciation; 2.20% Other Expenses (Net of Other Revenues); 1.17% Materials; 55.52% Employee Benefits Expense; 17.79% 6
Slide 33: Inventory and Trade Receivables
INVENTORY TO VOP (` in Crores) 4905 5000 300 4500 4177 4000 250 3271 3370 3427 3500 200 3000 206 206 202 2500 191 188 150 2000 1500 100 1000 50 500 0 0 2012-13 2013-14 2014-15 2015-16 2016-17 Inventory Inventory in No. of days to VOP (DPE) TRADE RECEIVABLES TO SALES (` in Crores) 4355 VoP = Net turn
Slide 34: Return on Capital Employed, ROE and EBITDA
RETURN ON CAPITAL EMPLOYED RETURN ON EQUITY (ROE) ( in %) (In %) 20.61% 19.57% 14.64% 14.12% 14.80% 14.55% 13.92% 13.16% 14.14% 13.28% 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Return on Capital Employed = PAT / Capital Employed Return on Equity = Profit After T
Slide 35: Earning Per Share, Cash EPS and Dividend Distribution
EARNING PER SHARE (EPS) (in `) CASH EARNING PER SHARE (in `) 6.64 7.46 5.45 6.16 4.86 5.50 3.88 4.25 4.48 3.71 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 EPS normalised for the previous periods due to Cash Earning Per Share = (PAT + Depreciation) / split in Face
Slide 36: R&D Expenses to Turnover and CAPEX
R&D EXPENSES TO TURNOVER (` in Crores) 900 10.00% 800 704 777 9.50% 700 9.00% 549 600 510 8.81% 8.50% 467 9.34% 500 8.00% 8.20% 400 8.48% 7.50% 7.56% 300 7.00% 200 6.50% CAPEX (` In Crores) 100 6.00% 2012-13 2013-14 2014-15 2015-16 2016-17 612 R&D Expenses R&D Expenses to Turnover 525 413 383 285 20
Slide 37: Book Value, Price Earning Ratio and Market Capitalisation
PRICE EARNING RATIO ( in %) BOOK VALUE PER SHARE (` in Crores) 37.43 33.62 23.62 21.22 32.85 29.24 26.27 15.81 11.41 9.58 6304 7017 7885 8984 7509 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Net Worth Book Value Book Value normalised for the previous periods due t
Slide 38: Share Holding Pattern as on 31.03.2017
SHARE HOLDING PATTERN AS ON 31.03.2017 GOVERNMENT OF INDIA ; 68.19% OTHERS; 7.59% INSURANCE COMPANIES; 5.48% FII; 6.65% MUTUAL FUNDS & UTI; 12.09% Others includes: Corporate Bodies (3.56%), NRI's (.19%) ,Banks & Financial Institutions (.15%) 12
Slide 39: Quarterly Performance
QUARTERLY PERFORMANCE 13
Slide 40: Financial Highlights for 1st Quarter 2017-18
Financial Highlights for 1St Quarter 2017-18 (` in Crores) Particulars 2017-18 2016-17 Total Income from Operation (Net) 1724.83 879.00 Net Profit for the period before tax 179.27 48.59 Net Profit for the period after tax 125.32 36.09 Earning Per Share (EPS in `) 5.60 1.50 (Previous year normalised
Slide 41: Thank You