Amber Enterprises India Ltd. · NSE:AMBER
Amber Enterprises India — Q1 FY2019 Earnings Presentation
41 slides from Amber Enterprises India's earnings presentation, August 2018
Slide 1: Amber Enterprises India Ltd Investor Presentation: August 2018
Amber Enterprises India Ltd Investor Presentation : August 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Amber Enterprises India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: Performance Snapshot
Performance Snapshot* ₹ Crs -3.5% 7.5% 12.7% 624 602 61 29 56 26 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Revenue Operating EBIDTA PAT • Unseasonal rains in April & May has resulted in Inventory build up across • We delivered a 103 bps increase in brands which has led to dip in revenue EBIDTA margi
Slide 4: Growth across Segments
Growth across Segments Value Growth Standalone Revenues (in. Crs) Particulars Q1 FY19 Q1 FY18 % Change Air Conditioner’s 466 512 -9.0% AC Components 53 49 8.1% Non AC Components 83 63 31.1% Total 602 624 -3.5% Consolidated Revenues (in. Crs) Particulars FY14 FY15 FY16 FY17 FY18 CAGR (%) Air Conditio
Slide 5: Revenue mix across segment
Revenue mix across segment* Q1 FY18 Revenue Mix across Segments Q1 FY19 Revenue Mix across Segments 10.2% 13.8% 7.8% 8.8% 77.4% 82.2% Air Conditioner's AC Components Non AC Components Air Conditioner's AC Components Non AC Components Leadership through Innovation *Data on standalone basis 5
Slide 6: Outperforming the Industry
Outperforming the Industry^ Amber’s Growth*# (Volume) Amber Growth*# (Value) Units in ‘000 ₹ Crs 570 549 624 602 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 1,910 1,923 +23.07% +38.7% 1,514 +26.2% +23.11% 1,562 1,082 978 800 838 684 516 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 *Quarterly data on Standa
Slide 7: Profit & Loss Statement
Profit & Loss Statement* Standalone Particulars (Rs in. Crs) Q1 FY19 Q1 FY18 % Change Revenue from Operations 602.09 651.00 Less: Excise duty 0.00 26.90 Total Revenue 602.09 624.10 -3.53% Raw Material 502.11 531.11 Employee Expenses 11.47 9.41 Other Expenses 27.88 27.19 Total Expenses 541.46 567.71
Slide 8: Strategic Priorities
Strategic Priorities
Slide 9: Strategic Priorities 2018-2020
Strategic Priorities 2018-2020 Product Expansion Customer Expansion Geography Expansion ▪ Special focus on new models of IOT based Inverter RAC ▪ Add RAC components such as ▪ Increase wallet share per Customer brushless DC Motor, Resin-core ▪ Increase customer acceptance of motors & inverter control
Slide 10: The Leadership Company
The Leadership Company
Slide 11: Leading Integrated Solution Provider for RAC
Leading Integrated Solution Provider for RAC… Incorporated in 1990, Amber has emerged as a market leader in Indian Room AC OEM/ODM industry Comprehensive product portfolio - Room AC, Reliable Critical Components with long approval cycle One of the Largest Manufacturer & Supplier of critical componen
Slide 12: …with 3 decades of History
…with 3 decades of History Acquisition of Incorporated in Jalandhar, Acquisition of PICL Started Noida Ecotech Unit IL JIN Punjab Dehradun Unit 5 Dehradun Unit 6 Jhajjhar Unit Exit to Green India IPO Started Dehradun Unit 4 established established establsihed Venture Fund 1990 1994 2004 2006 2008 20
Slide 13: Our facilities are Strategically located near Customers
Our facilities are Strategically located near Customers… PCBs for Air Conditioners & RAC (IDU, ODU &WAC), other Consumer durable Heat Exchangers, System products like washing tubing, Plastic molding & machine, microwave etc. Sheet metal parts Greater Noida, Dehradun 3 units IL JIN R & D Lab, Tool RA
Slide 14: …having facilities across 7 locations
…having facilities across 7 locations Dehradun Unit 4 Dehradun Unit 5 Dehradun Unit 6 IL JIN Unit Jhajjar Unit Ecotech Unit Kasna Unit Rajpura Unit Pune Unit PICL Unit Leadership through Innovation 14
Slide 15: Our Strategy that drives Leadership
Our Strategy that drives Leadership Leadership Strategy Product Portfolio Research & Development Backward Integration Economies of Scale Customer Relationships RAC (IDU, ODU & WAC) & Reliable & Critical High focus on ODM through Enables Flexibility & Cost Justify investment of Capital, 8 out of top
Slide 16: Our Comprehensive Product Portfolio
Our Comprehensive Product Portfolio RAC Energy Rating Capacity 1 ton Spilt AC 1.5 ton 2 ton Inverter AC (1, 1.5 & 2 ton) 1 ton Window AC 1.5 ton 2 ton Components Heat exchangers Injection moulding Multi flow Sheet metal condenser components Printed circuit Motor System tubing board Leadership throug
Slide 17: We offer Critical and Reliable Functional Components
We offer Critical and Reliable Functional Components… One of Largest Manufacturer and Supplier of Critical & Reliable Components in Room AC segment & other consumer durable products AC Components Non AC Components Printed Circuit Printed Circuit Boards Heat Exchangers System Tubing Washing Machine T
Slide 18: High degree of Backward Integration
…High degree of Backward Integration…. Outdoor Units* Indoor Units Window ACs 49% 78% 60% Amber Compressors Outsourced Amber Outsourced Amber Compressors Outsourced Critical Compressors Entry into New Flexibility & Reliable are Largely Brands through and Functional Imported Components Cost Control C
Slide 19: Our Products have Huge Entry Barriers
Our Products have Huge Entry Barriers Retaining Acquiring Customers Customers Through persistent investment of time and efforts Product approval cycle especially for leading brands can be as long as 2-3 years Cross Selling Gaining Confidence Opportunities Adapt it to your needs and Move to reliabili
Slide 20: Product Upgradation and Innovation through R&D
Product Upgradation and Innovation through R & D… Software's such as 3D modeling, product life cycle management Certifications: ▪ Approved by Department of Scientific & Industrial Research (DSIR) ▪ Accredited by National Accreditation Structure Design Board for Testing & Calibration Laboratories (NA
Slide 21: …drive ODM business through our R&D capabilities
…drive ODM business through our R&D capabilities One of the few Indian manufacturers with the capability to Amber designs & manufactures Inverter AC Models Amber’s R&D and design and manufacture Inverter ACs product design capabilities R&D 12% Facilities 16% Leads to high 72% Proportion of ODM busin
Slide 22: We are Serving Leadership in the RAC Industry
We are Serving Leadership in the RAC Industry Our Customer commands 75% Market Share Most of the Customers associated with Amber for 5 Years Collaborative Approach for new products with Customers The Brand Names/Model Designations mentioned in the Product List are the property of their respective Le
Slide 23: …with Experienced Leadership & Management Team
…with Experienced Leadership & Management Team ▪ Over 13 years of experience in RAC ▪ Over 9 years of experience in RAC Manufacturing sector Manufacturing sector ▪ Instrumental in successful commissioning of 6 ▪ Previously worked with Morgan Stanley in factories in last 10 years New York ▪ Initiated
Slide 24: …with Testimony from our Customers
…with Testimony from our Customers Year Particulars Consistently recognized by customers for performance, infrastructure, quality & support • ‘Best Support: Green Supply Chain’ from Godrej for 2016-2017. • Gold award in relation to green company rating system from CII- 2017 Sohrabji Godrej Green Bus
Slide 25: Product Market Update
Product Market Update
Slide 26: RAC's is highly underpenetrated in India
RAC’s is highly underpenetrated in India RAC Penetration v/s other Consumer Durables Exponential Growth in China 105 100.2 89% India 85% RAC Penetration Global 95 lagged other 96.3 70% 60% consumer durable 94.3 85 30% 75 20% 71.4 10% 65 RAC Penetration 4% crossed 100% 61.2 55 Room AC Refrigerator Wa
Slide 27: Brands are focussed on Asset Light Strategy for growth
Brands are focussed on Asset Light Strategy for growth… FY12 FY17 FY22E Brands focusing on Asset Light Strategy with focus 16% 34% on 44% Innovation, Marketing & Distribution 84% 66% 56% ODMs have economies of OEM/ODM RAC OEM/ODM RAC OEM/ODM RAC scale with qualitative Mn Total RAC Volume OEM/ODM Vol
Slide 28: …leading to solid growth in a Structural Deficit Market
…leading to solid growth in a Structural Deficit Market Break down of RAC Sourcing (FY17) ODM allows faster product development, design support along with manufacturing Imports 15% ODM is a step forward in gaining customer confidence besides acquiring higher wallet share OEM/ODM 34% RAC brands avoid
Slide 29: Huge Opportunity: Underpenetrated & Latent Demand
Huge Opportunity : Underpenetrated & Latent Demand Room AC Washing Machine Refrigerator 30% FPD TV 70% Global Penetration* 85% 89% Huge Potential Existing Underpenetrating per house Aspirational Buying 1-2 Units per House Multiple Units per House Behaviour 1-2 Units Per House 1-2 Units per House Ins
Slide 30: Acquisitions: Access to Future Ready Technology
Acquisitions : Access to Future Ready Technology Mechanical Product Smart Electronic Product
Slide 31: Acquisitions to add Future Ready Technology
Acquisitions to add Future Ready Technology IL JIN Electronics Ever Electronics Mechanical Product to Smart Electronic Product Amber’s Position Growth Drivers Leadership through Innovation 31
Slide 32: Range of Products
Range of Products Leadership through Innovation 32
Slide 33: Glimpse of the Manufacturing Facilities of IL JIN
Glimpse of the Manufacturing Facilities of IL JIN Leadership through Innovation 33
Slide 34: Long Term Value Creation
Long Term Value Creation
Slide 35: Consolidated Operating Performance
Consolidated Operating Performance Rs. (In Crs.) Total Income Operating EBITDA 2,128 +21.6% 184 1,652 +25.2% 1,230 131 1,089 103 114 973 75 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBIT PAT 143 62 +22.9% +29.3% 99 83 86 63 29 22 24 22 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 For FY
Slide 36: Seasonality in Sales for FY18
Seasonality in Sales for FY18* Sales in value Air Conditioner’s ₹ Crs ₹ Crs 835 559 512 656 362 265 274 188 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 AC Components Non AC Components ₹ Crs 143 ₹ Crs 133 82 61 54 50 47 32 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *All data on consolidated basis Leadership through Innovation 36
Slide 37: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Rs. In Crs FY18 FY17 FY16 FY15 FY14 CAGR (%) Revenue from operations 2,172 1,736 1,145 1,281 1,014 22% Excise duty 43 84 56 51 41 Total Revenue 2,128 1,652 1,089 1,230 973 Raw Material 1,769 1,371 859 1,013 798 Employee Expenses 50 44 37 34 32 Other Expenses 126
Slide 38: Key Ratios
Key Ratios 35.0 3.3 3.0 29.0 FY17 FY18 FY17 FY18 17.8% 9.9% 13.9% 7.0% FY17 FY18 FY17 FY18 Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency Leadership through Innovation All data on consolidated basis 38
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs in. Crs.) 31-Mar-18 31-Mar-17 Particulars (Rs in. Crs.) 31-Mar-18 31-Mar-17 Non-Current Assets 765 600 Equity 893 363 Property, Plant and Equipment 563 463 Capital work-in-progress 9 9 Equity Share Capital 31 24 Goodwil 65 34 Other Equity 861 339 Other Inta
Slide 40: Operating Leverage achieved by increased Capacity Utilization
Operating Leverage achieved by increased Capacity Utilization Room Air Conditioners (FY17) RAC & Non AC Components (FY17) 80% 1,800 1,586 100% 70% Capacity Utilisation (%) 1,500 1,365 80% 60% 50% 1,200 60% 40% 900 41% 43% 43% 30% 585 40% 600 20% 300 20% 10% 0% 0 0% Case Liner Plastic Heat Multi-flow
Slide 41: Contact Us
Contact Us Company : Investor Relations Advisors : CIN: L28910PB1990PLC010265 CIN: U74140MH2010PTC204285 Mr. Sudhir Goyal Mr. Sagar Shroff / Ms. Payal Dave sudhirgoyal@ambergroupindia.com sagar.shroff@sgapl.net / payal.dave@sgapl.net +91 98205 19303 / +91 98199 16314 www.ambergroupindia.com www.sgap
Amber Enterprises India — Q1 FY2019 Earnings Presentation on 6ix