AXISCADES TECHNOLOGIES LIMITED — Investor Presentation 2021

Jun 14, 2021

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June 14, 2021

Listing Department The Manager National Stock Exchange of India Ltd. Dptt. of Corporate Services Exchange Plaza, C-1, Block G BSE Limited Bandra Kurla Complex, Floor 25 Phiroze Jeejeebhoy Towers Bandra (E), Dalal Street, Fort, Mumbai- 400051 Mumbai – 400 051 NSE Symbol: AXISCADES BSE Scrip Code : 532395

Dear Sir,

Sub.: Q4 FY21 Result Presentation

Please find attached the consolidated results presentation for Quarter and Year ended March 31, 2021, of AXISCADES Technologies Limited (AXISCADES).

This presentation is the information for shareholders on the performance of the Company for the year ended March 31, 2021.

Kindly upload presentation to the terminals.

Yours truly,

For AXISCADES Technologies Limited

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Shweta Agrawal

Company Secretary

AXISCADES Technologies Limited

(Formerly AXISCADES Engineering Technologies Limited)

CIN No.: L72200KA1990PLC084435

Reg. Office: Block C, Second Floor, Kirloskar Business Park, Bengaluru - 560024, Karnataka, INDIA Ph: +91 80 4193 9000 | Fax: +91 80 4193 9099 | Email: info@axiscades.in | www.axiscades.in

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Q4 FY21 & FY21 INVESTORS PRESENTATION

AXISCADES Technologies Limited CIN NO : L72200KA1990PLC084435

Disclaimer

Certain statements in this communication be considered as ‘forward statements’ within the of may looking meaning applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.

AXISCADES Technologies Limited (ACTL) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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Table of Contents

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Company Overview
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Message from Chairman
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Financial Performance
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Annexures
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AXISCADES Overview

AXISCADES is a Technology Company focusing on Product Engineering Solutions, serving Global OEMs

Aerospace

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• Design & Analysis - Primary & Secondary Structures, Aircraft Interiors

• MSI and ESI, Electrical harness

• Manufacturing Engineering

Design Manufacturing

Defence & Homeland Security

• Avionics, Radar/EW, C4I2

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• Automated Test Solutions

• Simulators, UAVs

• GSE/GHE

• System Integration

• Offset Management

• In-Service support - Repairs

Heavy Engg.

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Energy

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• Structures, Cabin Design

• Engine, Powertrain

• Electrical, Lube, Hydraulic systems Design

• Digital Manufacturing

• Design, Analysis - Tower, Generator, Hub, Spinner, Nacelle, Yaw, Blade

• Mechanical & Electrical Routing

• Wind Resource Analysis

• Advanced FE Simulations

Mechanical Engineering Embedded SW and HW System Integration Digitization Manufacturing and Aftermarket Solutions

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In Service Support
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Automotive

• Design, Analysis

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• BIW/CIW

• Interior & Exterior

• Engines, Powertrain

• Cost Optimization & Localization

Medical & Healthcare

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• Health Monitoring Devices

• Infusion Pumps & Insulin Delivery

• Product Sustenance

• Regulatory Compliance

Strategic partner to global OEMs for Innovative, Sustainable, Safer & Smarter Products.

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Messa e from Chairman g

Commenting on the results and outlook, Mr. David Bradley, Chairman of AXISCADES said: “Given the pandemic and the challenging economic conditions, Company and the management team has done a commendable job during the year under review. Owing to the work undertaken over the last 2 years, the Company is better positioned to capitalize on the opportunity that would be unfolding over the next couple of years”.

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Highlights for Q4FY21

• Strong Revenue growth of 19% Q-o-Q in INR terms at INR 1,489Mn

• Revenue growth of 18% Q-o-Q in USD terms at USD20Mn

• Operating profit stands at INR 231.2Mn, 15.2% growth.

• Loss for the quarter is INR 105Mn. However, adjusted for exceptional item, i.e. impairment, the adjusted profit after tax stands at INR 93Mn, a growth of 67% Q-o-Q

• 2 New customers added in Automotive Industry vertical

• Strong Q-o-Q growth reflects improvement in demand, however due to the recent surges in cases in the country, we may see muted Q1 FY22.

• We continue to take actions to prioritize our spending for investment in services, expand offerings and to control costs.

• The Company is geared to tackle the challenges from the Covid -19 pandemic and is confident of robust growth once customers come back to normalcy.

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Hi hli hts for FY21 g g

• Revenue decline is primarily attributed to Aerospace sector

• i. 25% Y-o-Y to USD 70Mn

• ii. 22% Y-o-Y to INR 5,238Mn.

• Operating profit stands at INR 785Mn; at 14.6% margin

• Loss for the year is INR 212Mn. However, adjusted for exceptional item, i.e. impairment, the adjusted profit after tax stands at INR 196Mn.

• 7 New customers added in Heavy Engineering and Automotive verticals

• Cash and Cash equivalent stands at INR 848 Mn; increase of INR 146Mn Y-o-Y

• Reduction in debts by 49% Y-o-Y; debt in company stands at INR 728Mn

• PAT was impacted by the impairment of the Company’s investment in Mistral, given their underperformance vis-a-vis the at the time of in an loss on of INR 625Mn. This was

• projections given acquisition resulting impairment goodwill partly offset by reduction in contingent purchase consideration payable by INR 217Mn. Accordingly, net impairment of INR 408 Mn was recognized. This does not have any cash flow impact.

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Consolidated Financial Performance – Q4 FY20 & FY21

Particulars(INR Mn)	Q4 FY20 Q3 FY21 Q4 FY21		FY20 FY21
Revenue Other Operating Income Other Income Total Revenue Cost of Material consumed Employee benefit Exp Other Expenses EBITDA EBITDA Margin Depreciation and Amortization EBIT EBIT Margin Finance cost Profit before non-controlling interest / share in net profit of associate / Exceptional items Share in net Profit/(Loss) of associate Exceptional Items Tax PAT Reported PAT Adjusted PAT Margin (Reported) PAT Margin (Adjusted) EPS Reported EPS Adjusted*	1,885 1,248 1,461 39 7 28 14 30 31 1,937 1,285 1,520 408 201 323 867 657 701 316 221 265 346 206 231 17.8% 16.1% 15.2% 117 60 61 229 147 170 11.8% 11.4% 11.2% 65 52 47 164 94 123 1 1 0 - - -198 2 40 30 164 56 -105 164 56 93 8.5% 4.4% -6.9% 8.5% 4.4% 6.1% 4.30 1.45 -2.81 4.30 1.45 2.44		6,650 5,174 79 65 76 145 6,805 5,383 1,026 985 3,612 2,666 1,175 947 993 785 14.6% 14.6% 327 260 665 525 9.8% 9.7% 283 225 382 300 2 4 - -408 81 108 303 -212 303 196 4.5% -3.9% 4.5% 3.6% 7.87 -5.74 7.87 5.04

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Consolidated Balance Sheet Sna shot p

Particulars 31-Mar-20 31-Mar-21	Notes Key highlights: - Reduction in Gross debt by 49% Y-o-Y; debt in Company stands at INR 728 Mn - Working capital loans reduced by 63%, INR 533 Mn - Goodwill impacted due to impairment of Mistral investment - Cash increased from INR 448 Mn to 527 Mn - Investments increased by 41.4% to 406 Mn - Improvement in DSO by 4 days
Net Worth 3,151 2,986
Total debt(excld. Inter Co.) 1,442 728 - Long term loan 389 208 - Current maturities of long term Borrowings 220 213 - Short term loan 833 306 Trade payables 498 506 Fixed assets (Net of Depreciation) 936 873 Goodwill on consolidation 1,678 1,047 Right-of-use Assets 934 962 Capital work-in-progress - - Intangible assets under development 6 - Cash and cash equivalents 448 527 Bank balances other than cash and cash equivalents 254 321 Investments 287 406 Trade receivables 1,664 1,275
DSO 109 105

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Diversified Revenue - Q4 FY21 vs Q3 FY21

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VERTICAL INDUSTRY GEOGRAPHY
E NGI NE E R I NG D E S I GN S T R AT E GIC T E C H NOL OGY AEROS PACE H E G AIP E NE R GY PRODUCT AND E U R O P E US A APAC C A NA D A
S E R V IC E S S OL UT IONS S OL UT IONS
Q4 FY21 Q3 FY21
Q4 FY21 Q3 FY21 Q4 FY21 Q3 FY21
PROJECT TYPE
LOCATION CURRENCY
OF F S HORE ONS HORE T IME AND MAT E R IAL F IXE D PR IC E
US D INR E U R C A D GBP OT HERS
Q4 FY21 Q3 FY21 Q4 FY21 Q3 FY21
Q4 FY21 Q3 FY21
42% 37% 38%
70% 39%
65% 36% 32%
31%
30%
24% 24%
22%
35% 20%
30%
7% 8%
3% 3% 2% 2%
73% 59%
70%
51% 55%
49%
45%
41%
30%
27% 24% 23%
16%
14%
7% 8%
4% 3%
0% 1%
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Diversified Revenue - FY21 vs FY20

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VERTICAL INDUSTRY GEOGRAPHY
E NGI NE E R I NG D E S I GN S T R AT E GIC T E C H NOL OGY AEROS PACE H E G AIP E NE R GY PRODUCT AND
S E R V IC E S S OL UT IONS S OL UT IONS E U R O P E US A APAC C A NA D A
FY21 FY20 FY21 FY20 FY21 FY20
LOCATION CURRENCY PROJECT TYPE
OF F S HORE ONS HORE US D INR E U R C A D GBP OT HERS T IME AND MAT E R IAL F IXE D PR IC E
FY21 FY20 FY21 FY20 FY21 FY20
75% 42%
70% 39% 41%
39%
36%
31% 33%
30%
25%
23%
21%
30%
25% 17%
3% 3% 2% 2% 7% 6%
54% 55%
68% 59%
62% 54% 46% 45%
38%
32%
21%
17% 15% 16%
7% 5%
3% 2% 1% 1%
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Financial Metrics – Q4 FY20 & FY21

Key ratios (%)	Q4 FY20 Q3 FY21 Q4 FY21	FY20 FY21
Total Income (Rs. Mn.)	1,937 1,285 1,520	6,805 5,383
Gross margin	28.3% 28.2% 27.0%	28.5% 25.6%
Selling expenses G&A expenses Provision for Debtors	4.2% 3.8% 5.8% 4.4% 8.4% 5.6% 1.8% 0.0% 0.3%	5.0% 4.8% 8.4% 6.1% 0.5% 0.1%
EBITDA Margin	17.8% 16.1% 15.2%	14.6% 14.6%
EBIT Margin PBT margin	11.8% 11.4% 11.2% 8.5% 7.4% 8.1%	9.8% 9.7% 5.6% 5.6%
PAT Reported Adjusted PAT*	8.5% 4.4% -6.9% 8.5% 4.4% 6.1%	4.5% -3.9% 4.5% 3.6%
Basic EPS - ₹/Share (Reported PAT) Basic EPS - ₹/Share(Adjusted PAT)	4.30 1.45(2.81) 4.30 1.452.44	7.87(5.74) 7.875.04

• Adjusted PAT is PAT adjusted for exceptional items, i.e. impairment cost

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Business Outlook

Aerospace

Aerospace saw growth of 7.4% Q-o-Q after 4 quarters of decline. Off late we are witnessing increased activity and based on interactions with our customers and available information, FY22 is expected to be better compared to FY21.

HEG

HEG saw growth of 9% Q-o-Q. This continues to be our largest vertical and are witnessing growth coming back owing to opening of economies in US & Europe. Use of digital tools in area of manufacturing is opening new areas of discussion & engagement. Growth is expected in the areas of manufacturing and related engineering services.

PRODUCTS AND SOLUTIONS

Products and solutions saw growth of 37% Q-o-Q, partly on account of seasonality. The Government of India opening the defence industry for private sector and coupled with Make in India push for defence modernisation is a major opportunity for domestic private players.

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Annexures

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About AXISCADES Technolo ies Ltd. g

AXISCADES is a Technology Company focusing on Product Engineering Solutions, serving Global OEMs. Its proven technology products and services, coupled with industry best practices, enable global OEMs to create innovative, sustainable, safer and smarter products.

The company has more than 1,700+ engineers worldwide, offers solutions in mechanical engineering, embedded software and hardware, system integration, manufacturing and aftermarket solutions across domains addressing every stage of product lifecycle development. Headquartered in Bengaluru, AXISCADES has 14 engineering centers worldwide including North America, Europe and Asia.

For further information, please contact:

Shishir Gahoi

AXISCADES Technologies Ltd. Kirloskar Business Park, Block ‘C’, 2nd Floor, Hebbal, Bangalore – 560 024, India Email : Shishir.Gahoi@axiscades.in

Gavin Desa / Rishab Barar CDR, India Floor 3, Raj Mahal Building, Veer Nariman Road, Churchgate, Mumbai 400 020 Tel: +91 22 6645 1237 / 1235 Email: gavin@cdr-india.com / rishab@cdr-india.com

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Abbreviation and Ke Terms y

Key Terms	Explanation
Operating Margin	Earning before Interest and taxes is calculated from Financial statement as per Regulation 33 of the Listing Regulations.
Total Income	Revenue is Total Income from operations as mentioned in Financial statement as per Regulation 33 of the Listing Regulations.
Gross Margin	Revenue less salary and staff welfare cost of direct engineers and any other project delivery expenses (includes project travel, hardware, outsourcing, software licenses and facility cost).
G&A Expenses	General and Administrative expenses, not directly attributable to delivery and sales.
PBT	Profit before Tax
PAT, Net Profit	Profit after Taxes and Minority Interest
EPS	Earning Per share
Net Worth	Share holders Fund
Capital Employed	Share holders Fund plus long term loans

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