Slide 1: Investor Update Q1FY20
July 26, 2019 Investor Update Q1FY20 KPIT 1
Slide 2: Performance Overview
Performance Overview • Q1FY20 2
Slide 3: Q1FY20 Performance Overview
Q1FY20 Performance Overview Q1FY20 Y-o-Y* CC growth of 19.3%, 16.5% in USD Terms Q1FY20 Q-o-Q comparable growth of 5.03% in USD Terms EBITDA for Q1FY20 at 14.6% Net Cash as at Q1FY20 end stood at INR 1,810 Million * Q1FY20 revenue over Engineering Services Revenue for Q1FY19 7/26/2019 3
Slide 4: Management Quotes
Management Quotes Commenting on the performance of Q1 FY20, Ravi Pandit, Co-founder, Chairman and Group CEO, KPIT said,” Software growth in Automotive and Mobility will comprehensively outpace the vehicle sales growth in the coming years. The mobility world is embracing software faster than ever bef
Slide 5: Q1FY20 Additional Fast Facts
Q1FY20 Additional Fast Facts 1. Q1FY20 Q-o-Q comparable growth of 5.03%. Reported revenue of USD 72.75 Million against comparable revenue of USD 69.27 Million last quarter. (Last quarter comparable revenue = Reported Revenue of USD 71.05 minus hardware product (ITS/VTS) revenue of USD 1.78 Million)
Slide 6: Cash Flow – Major Movement
Cash Flow – Major Movement Cash Profit – 545 Decrease in Working Capital – 667 Q-o-Q Increase in Net Cash of INR 910 Million Capex – 230 NET CASH Q1FY20 Q4FY19 Translation and Gross Cash 3,338 2,207 other changes - 94 Long Term Debt 687 689 Short Term Debt 841 618 Cash and Cash Equivalents break-up
Slide 7: Exceptional Items in Q1FY20
Exceptional Items in Q1FY20 During the quarter we sold our existing hardware dominated business pertaining to ITS and AIS 140/VTS, to Minda Industries Ltd. The upfront consideration received for the same is INR 170 Million which is recorded as income under exceptional items. During the quarter we pa
Slide 8: IND AS 116 Impact
IND AS 116 Impact As required under the accounting standards, we adopted IND AS 116 during the quarter per which the operating leases are to be classified as financial leases. The adoption of the same resulted in the following: PROFIT & LOSS IMPACT BALANCE SHEET IMPACT Depreciation INR 51 Million Fi
Slide 9: Movement in Profit – Q4FY19 to Q1FY20
Movement in Profit – Q4FY19 to Q1FY20 Rupee appreciation negatively impacted EBITDA by 0.4%, Operating lease Reclassification Ind AS 116 - resulting in EBITDA improvement by 1.4% & negative impact on PAT by INR 4 million Ind AS 116 – Dep & Int Ind AS 116 - EBITDA Rupee Appreciation Exceptional items
Slide 10: Major Deal Wins
Major Deal Wins A leading European Premier Car Manufacturer selected KPIT for a large multi year project in the powertrain domain A leading American Tier I Supplier selected KPIT for a large multi year license plus services project in the diagnostics domain A leading European Tier I Supplier selecte
Slide 11: Automotive and Mobility Industry Trends
Automotive and Mobility Industry Trends 11
Slide 12: The Mega Trends
The Mega Trends CONNECTED These 4 mega trends are not only disrupting the traditional automotive value AUTONOMOUS chain but also are believed to be the biggest growth drivers for the Automotive SHARED MOBILITY Software Market between 2020 and 2030. Driven by these trends, in the next ELECTRIFICATION
Slide 13: Software and Electronics to outgrow the automotive sales
Software and Electronics to outgrow the automotive sales 469 34 CAGR Automotive Software and Components (2020-30) Electrical/Electronics Market 50 USD Billion Power Electronics (excl. 15% Battery Cells) 81 Software (functions, OS, 9% Middleware) 238 13 Integration, Verification 20 10% and Validation
Slide 14: Software Growth to be driven by these domains
Software Growth to be driven by these domains 84 CAGR Automotive Software and 8 Components (2020-30) Electrical/Electronics Market USD Billion 9 AD-ADAS 11% 6 Infotainment 9% Powertrain* 1% 18 Body 10% OS and Middleware 11% 35 3 4 TOTAL 9% 5 8 43 * This is the Net of Growth in Electric Powertrain an
Slide 15: Software growth to be driven by these stages
Software growth to be driven by these stages 84 Automotive Software and 3 major drivers for 10 CAGR Electrical/Electronics Market Components (2020- strong growth in S/w USD Billion 30) Increase in S/w 24 Function 1 10% complexity Development driven by CASE Verification & trends 10% Validation 35 Int
Slide 16: These Disruptive Trends to impact Industry Value Chain
These Disruptive Trends to impact Industry Value Chain New Technologies are changing the equations between OEMs and traditional 1 suppliers S/w capabilities required now do not exist at sufficient levels in traditional sourcing. This creates huge opportunities for new entrants (s/w companies) with d
Slide 17: KPIT is ready and equipped to capture the high software growth
KPIT is ready and equipped to capture the high software growth in Automotive & Mobility • Quick Capability Overview 17
Slide 18: Our Vision
Our Vision KPIT Vision Reimagining mobility with you for creation of a cleaner, smarter & safer world Sharp Focus on Automotive and Mobility More than 2 decades of work in embedded software for automotive Focused Investments in technology Several Million 300+ 12 10+ Vehicles use KPIT Vehicle product
Slide 19: Reimagining mobility with sharper focus on verticals
Reimagining mobility with sharper focus on verticals Passenger Commercial New Cars Vehicles Mobility 7/26/2019 19
Slide 20: Reimagining software technology, driving the future of mobility
Reimagining software technology, driving the future of mobility Autonomous Driving Connected Vehicles Powertrain (Electric+ Conventional) AUTOSAR Mechatronics Vehicle Diagnostics 7/26/2019 20
Slide 21: We are ready
We are ready 6800+ Automobelievers 20+ Nationalities 20% Masters & PHD holders 25 Innovation Awards 51 Global Patents 4% - 5% Jessica Medium VP of Operations of Revenue spent on R&D 7/26/2019 21
Slide 22: Other Updates
Other Updates • Quick Overview 22
Slide 23: Geography Update
Geography Update EUROPE US ASIA OEMs increasingly taking New OEMs (EVs) & added OEMs increasing spend on AD, control of software Ecosystem Partnerships Electric and AUTOSAR. Spend on Electric, Connectivity Spend on Connectivity, AD, OEMs investing in future and Autonomous rising Diagnostics & AUTOSA
Slide 24: Technology Update
Technology Update We filed 3 patents during the quarter, 2 with complete specifications in the AD-ADAS domains and 1 with provisional specifications in the Fuel Cell domain. 2 Patents were granted to us during the quarter, 1 in the ADAS domain and 1 in the Hybrid domain As of end of the quarter, the
Slide 25: Financial and Operational Data
Financial and Operational Data • Snapshot 25
Slide 26: Profit & Loss Account Snapshot
Profit & Loss Account Snapshot INR MN DETAILS Q1FY20 Q4FY19 This includes loss on account of Revenue from Operations 5,057.51 5,012.68 change in FMV of Birlasoft Shares Other Income 14.56 36.39 investment by KPIT Employee Change in FMV of Investments - 319.01 Welfare Trust of INR 46.44 Million which
Slide 27: Balance Sheet Snapshot
Balance Sheet Snapshot INR MN EQUITY & LIABILITIES Q1FY20 Q4FY19 ASSETS Q1FY20 Q4FY19 Equity Share Capital 2,685.02 2,685.02 NON-CURRENT ASSETS Other Equity 6,975.77 6,910.55 Property, Plant & Equipment 2,200.53 2,568.33 Equity attributable to owners 9,660.79 9,595.57 Right-of-use Assets 1,234.94 -
Slide 28: Revenue Break-up
Revenue Break-up USD MN Geography Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y US 30.29 28.43 26.39 6.6% 14.8% Europe 27.00 23.81 20.32 13.4% 32.9% Asia 15.45 18.82 15.75 (17.9)% (1.9)% TOTAL 72.75 71.05 62.46 2.4% 16.5% Verticals Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y Passenger Cars 52.89 52.64 45.8 0.47% 15.47% Com
Slide 29: P&L Metrics
P&L Metrics Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y Revenue by Contract Type Time & Material Basis 48.6% 52.0% 60.2% (4.3)% (6.0)% Fixed Price Basis 51.4% 48.0% 39.8% 9.7% 50.4% Customers Strategic T25 Customer Revenue 81.2% 76.4% 76.1% 8.9% 24.4% Active Customers 60 60 Revenue per Devp. Employee USD 45,57
Slide 30: Currency wise revenues, Hedging Details
Currency wise revenues, Hedging Details Hedge Details Q1FY20 Currency wise revenue Q1FY20 Q4FY19 Q1FY19 Hedge Rates USD 41.8% 43.1% 44.2% USD/INR 70.78 EUR 29.2% 23.0% 20.9% EUR/INR 80.30 GBP/INR 91.39 GBP 7.5% 9.4% 9.8% JPY 12.0% 13.8% 14.6% Hedge Amounts(Mn) INR 6.5% 7.6% 7.8% USD/INR 16.0 Others
Slide 31: Headcount Data
Headcount Data Period End Headcount Q1FY20 Q4FY19 Q1FY19 Q-o-Q Y-o-Y Development 6,385 6,303 - - - Enabling & Sales 506* 311 - - - Total 6,891* 6,614 - - - • Some people from enabling functions like Finance, HR, recruitment etc. are dedicated to practices and were included as development team earlie
Slide 32: Forward Looking Statements
Forward Looking Statements Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our b
Slide 33: Contact us
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Slide 34: Conference Call Details
Conference Call Details Conference name : KPIT Technologies Q1 FY2020 Post Earnings Conference Call Date : Monday July 29, 2019 Time : 1600 Hrs. Participants : Mr. Kishor Patil, Co-founder, CEO & MD Mr. Sachin Tikekar, President & Board Member Mr. Vinit Teredesai, CFO Mr. Sunil Phansalkar, AVP & Hea
Slide 35: Contact
Contact For Investor Queries Email Sunil.Phansalkar@kpit.com Desk Phone + 91 20 6770 6997 Cell + 91 98509 66011 Website www.kpit.com Sunil Phansalkar 7/26/2019 35
Slide 36: Contact
Contact For Media Queries Email Sunil.R@kpit.com Desk Phone + 91 80 3028 7865 Cell + 91 99001 50180 Website www.kpit.com Sunil B R 7/26/2019 36
Slide 37: Thank You
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