Slide 1: Stock exchange cover letter for investor presentation
Varroc Engineering Limited Regd. & Corp. Office L‐4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 136, Fax + 91 240 2564540 www.varroc.com Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2024-25/119 December 10, 2024 To, The Manager- List
Slide 2: Varroc Investor Presentation
VARROC INVESTOR PRESENTATION
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: About Us
About Us Varroc is a leading global auto technology company with a product portfolio covering a wide range of electrical, electronics, 08 7000+ Countries Employees lighting, polymer, metallic, after-market and advanced safety solutions 39 Operating Manufacturing Facilities REVENUE USD 910 MILLION BU
Slide 5: Vision, Mission and Values
VARROC Vision Mission Create safe, smart and sustainable future mobility Be the trendsetter in providing mobility solutions that solutions for everyone. offer the highest value for money • Extend India Market leader position in 2W mobility, lighting, and driver assistance to the world. • Double prof
Slide 6: Representation of Varroc
Representation of Varroc Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures* Overseas Subsidiaries India Subsidiaries’ & JV ● Varroc TYC (China JV for ● IMES ITALY ● Electrical and Electronics (EBU) (incl. 2W Lightin
Slide 7: Technology for Two Wheelers
Technology for Two Wheelers Electronic Fuel Injection LED Headlamps, Mirrors for ICE vehicles and BS6 Safety Sustainability catalytic converters Traction motor and controller, Power assist ISG, and e- Connected Displays, TFT Drivetrain energy management and sensor Interfaces, Electrification systems
Slide 8: Technology for Four Wheelers
Technology for Four Wheelers ADAS, Driver Monitoring Systems, Surround View Systems, LED Headlamps & LCUs, Adaptive Front Safety Lighting Systems Mirrors Safety Signature Lighting, Interior Systems, In-Cabin Sensing, Personalization Personalization Interior Mood Lighting, Center Consoles FOTA in Tel
Slide 9: Varroc's EV Product Offering
Varroc’s EV Product Offering WE OFFER WIDE RANGE OF PRODUCTS FOR ELECTRIC VEHICLE WITH LOCALISED MANUFACTURING (2W/3W) 8 7 6 5 4 3 2 1 Telematics On Board BMS TFT/fully Throttle DC-DC Motor PMSM Charger Digital Position Sensor Converter Controller Traction Motor Cluster Under Testing & Development E
Slide 10: Excelling as a Systems Supplier
Excelling as a Systems Supplier Components • Customer CTQs • Component Design • Robust analysis to predict the design meets all CTQs • Tolerance analysis to ensure DFM Motor • Material and component data Base to speed up the design Sub-Systems • Customer requirements and CTQs • Sub-system level CTQs
Slide 11: Unlocking Synergies across Competencies
Unlocking Synergies across Competencies Varroc's unique positioning as a systems supplier is strengthened through collaboration across its businesses. Traction Motor 4W ORVM Mirror with Gearbox Polymer + Electrical Electrical + Metallic Cross Mirror and Tailgate Competence Seat with Signal Lighting
Slide 12: Capabilities: Product Development
Capabilities: Product Development End-to-end capabilities across design, engineering, testing/validation, tooling, manufacturing and delivery Testing and Validation Project and Program Facilities CAE and Simulation Management Structural & Vibration Functional Performance DFSS/DMAIC Product Life Cycl
Slide 13: Highlights of FY24 & H1 FY25
Highlights of FY24 & H1 FY25 1. Revenue for FY24 at 75,443 mn with a growth of 9.5% driven by strong India business growth of 14.7% Revenue for H1 FY25 came at Rs.39.796 mn with a growth of 7.8% again driven by India business growth of 12.4% 2. Improved profitability H1 FY25 PBT at 3.7% & FY 24 PBT
Slide 14: Profitability Statement - Last 3 years
Profitability Statement - Last 3 years 75519 FY 2022 FY 2023 FY 2024 37.3%36.6% 68912 35.7% 34.4% 58658 Figure in Rs Millions FY 2022 FY 2023 28186 FY 2024 24607 20164 10.1% 9.4% H1 FY25 8.7% 6.6% 4.2% 3.7% 59667590 5530 3892 3149 1.2% 829 388 Revenue Gross Profit EBITDA -301 PBT -783 PAT Gross Marg
Slide 15: Key Financial Indicators
Key Financial Indicators ROCE Interest Servicing Ratio 18.3% 19.0% 2.42 1.92 12.0% 1.37 Improved return ratio FY 2023 FY 2024 H1 FY25 and strengthening of FY 2023 FY 2024 H1 FY25 balance sheet is Net Debt Equity Ratio improving debt Net Debt/EBITDA 1.27 servicing ability 2.14 1.39 0.64 1.11 0.50 FY
Slide 16: Revenue Breakdown for H1 FY25
Revenue Breakdown for H1 FY25 Business Unit Segment 4.8% 2.5% 8.7% Electrical Electronics Lighting 24.6% 8.1% 2.7% 8.9% Polymer 29.1% 37.5% 37.1% 12.2% Metalic 2&3W 11.9% Aftermarket 4W & Others Other (Overseas) 70.9% 31.4% Lighting & Electronics Overseas 75.4% 34.3% Geography Customer 12.3% 15.7% 4
Slide 17: New Lifetime Order Win in H1 FY25
New Lifetime Order Win in H1 FY25 (Lifetime Value is 32,484 million and Annual Peak Revenue is Rs.6,046 million) New business win adding to our revenue* in next 3 years Lifetime Revenue win from 2&3W and 4W Players 22,000 15,033 17,500 17500 14500 2W & 3W, 8500 9,250 4W, 53.7% 46.3% 6500 6500 6500 1
Slide 18: Technological new age products SOP in H1 FY25
Technological new age products SOP in H1 FY25 SOP Integrated Starter Generator (ISG) Two Stage Soft Covering Process with Hot Press Lamination ISG System (Motor Generator + Controller) This covering process required high skilled manpower as combines engine cranking, electrical generation Soft wrappi
Slide 19: Technological new age products win in H1 FY25
Technological new age products win in H1 FY25 NEW WIN Battery Management System (BMS) Interior Ambient Lighting BMS ensure battery cells are free from imbalance Interior ambient lighting products delivers an also collects data and communicates with charger emotional atmosphere within the vehicle and
Slide 20: CAPEX spent for focus products growth
CAPEX spent for focus products growth Extension of existing plant to cater to EV OEM Acquired land in South & West India to further Expanding our SMT lines from 10 to 15 to cater to our electronics need strengthen relationship with OEM’s
Slide 21: Compounding Machine of Value
Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure through economies of sca
Slide 22: Why Varroc
Why Varroc Continuous Focus on R&D Strong Competitive Long Standing, Comprehensive Low-Cost Capabilities Enhancing Position in a Growing Growing Customer Solution Provider Manufacturing Portfolio Market Segment Relationships Footprint • End-to-end services across design, • Developing innovative, cos
Slide 23: Thank You
la Voarrfroc EXCELLENCE