Onward Technologies Ltd. — Regulatory Filings 2021

May 26, 2021

INVESTOR PRESENTATION MAY 2021

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Snapshot

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Legacy

• 3 Decades of Experience

• Founder, Mr. Harish Mehta also cofounded NASSCOM

  • Global Footprint

• Leading Engineering R&D and Digital Transformation service provider

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Execution Capabilities

 Over 8500 of Projects Delivered  Over 50 Million of Hours of engineering work

• Among select few specialised ER&D Service providers in India

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Team Strength

• Dynamic & Experienced Leadership Team

• 2,000+ Experienced employees

• Continuously investing in training for skilling, upskilling , reskilling

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Flexible Business Model

• Onsite / Offshore blended services

• Ability to ramp up globally to meet client demands

• Agility & Speed in Execution

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Marquee Clientele

• Enviable Customer base of marquee companies

• Preferred partner to 30+ Large Global companies across North America, Europe and India.

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Key Financial Metrics

• 5-year Revenue CAGR: 3.98%

• 5-year PAT CAGR: 18.16%

• FY21 ROE: 9.85%, ROCE: 14.22%  Net Debt Free

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Company Overview

Key Business Segments

• Established in 1991 Onward Technologies Ltd is a leading player today in Engineering Research & Development (ER&D), Digital Transformation and IT consulting services (ITS).

• Headquartered at Mumbai, the company caters to a wide set of customers who are leading global players in their respective areas and it is a trusted service provider for many leading MNC companies across sectors like Transportation, Industrial & Heavy Machinery, Hi-Tech and Healthcare & Medical Devices.

• The company prides itself in possessing high-end capabilities and providing flawless execution across Digital suite of Engineering Design services.

Engineering Research & Development (ER&D)

• The Company offers wide range of engineering design services including product design, electronics and embedded engineering, engineering analysis, engineering documentation and maintenance and manufacturing solutions.

Digital Transformation

• Onward has a strong team of more than 2,000 experienced employees operating from multiple offices and client locations across India, USA, UK & Europe.

• With the changes occurring in the global manufacturing space, Onward Technologies enables companies become more dynamic, flexible, and efficient while optimising costs significantly.

Revenue & EBITDA Margin (INR Mn)

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FY21 Segmental Revenue
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2,610 2,715
2,445
2,236 2,404
8.58% 8.58%
7.20%
5.01% 4.58%
FY17 FY18 FY19 FY20 FY21
Revenue EBITDA Margin
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Digital, 2%
ITS, 26%
EDS, 72%
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• With the Industry 4.0 revolution, digital transformation is the newest but fastest growing vertical, with services like digital factory, data architecture design & modelling, big data and advanced analytics, IoT, cloud services, automation and data visualization.

IT Services (ITS)

• The IT consulting vertical also provides application management services, database maintenance support, technical helpdesk support, infrastructure support and retail banking solutions.

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Board of Directors

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Harish S. Mehta - Executive Chairman

• As Founder of Onward Group, Mr. Harish Mehta has led, grown, and mentored two generations of this technology company. He was the Deputy Chairman and Managing Director of Onward Novell Software (I) Ltd. (1993-2005), a 50:50 JV between Onward Group and Novell, Inc. (2nd largest personal software company globally then). Onward Technologies took off in 2005 where he served as MD & Chairman from inception to 2015. He has since been the Executive Chairman of the company. Previously, Mr. Harish Mehta was one of the chief architects of the Hinditron-Digital (DEC) JV in India in 1987.

• Mr. Mehta was the driving force behind galvanizing the IT industry in India by co-founding NASSCOM, the IT industry association of India. He was honored by the PM Mr. Narendra Modi, for 25 years of exemplary contribution to Indian IT.

• Mr. Mehta Introduced the Indus Entrepreneurs (TiE), a Silicon Valley-based Organisation, to Mumbai, and he was the First President of TiE – Mumbai (1999).

• Mr. Mehta is an active volunteer of the Onward Foundation & Dewang Mehta Foundation. He holds a Bachelor’s degree in Electrical Engineering from the College of Engineering, Pune, and a Master’s in Computer Science from Brooklyn Polytechnic Institute, NY.

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Jigar H. Mehta - Managing Director

• Jigar Mehta has been with Onward Technologies for 18+ years and led various organizations within the company including Sales, Business Strategy, Finance, and HR before taking over the position of Managing Director in 2016. Over his career with the company, he has been instrumental in transforming a traditional domestic family business of 300 employees to 1,850+ strong team today with 50% of revenues coming from international markets in North America and Europe.

• Today he lends direction and leads OTL strategy in the 3 primary markets of North America, Europe & India. He joined OTL in 2001 after his graduation in Business Administration from Boston University, MA (USA) and is an alumnus of Don Bosco School and St. Xaviers College (Mumbai).

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Board of Directors

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Parish Meghani - Director

Mr. Parish Meghani is actively involved in three areas; an auto-ancillary manufacturing business, a real estate business and equity investments. He has prior experience of running an IT firm that specialized in data security products. He has done his Production Engineering from Mumbai & holds an MBA with a Finance concentration from Bentley College, MA (USA).

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Rahul Rathi - Director

Mr. Rahul Rathi is currently the Chairman and Fund Manager at CapMetrics Investment Advisors (Purnartha) Private Limited. Purnartha is a SEBI registered advisory firm with 1500+ clients. He has a Master’s degree in Industrial Administration from Carnegie Mellon University (USA) and a Polymer Engineering degree from the University of Pune.

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Subrata Kumar Mitra - Director

Mr. Subrata Kumar Mitra comes with over three decades of experience across the financial sector. He has been on the board of directors of several reputed companies, along with being an advisor to the likes of large international banks to private equity firms and start-ups. Mr. Mitra has been at the forefront of setting up and managing several divisions at high profile organizations and taking them to success.

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Jay Sonawala - Director

Mr. Jay Sonawala, Vice-President – HDFC Bank, has been with HDFC since 1999, working across various verticals and industries such as textiles, cement, automobiles, and IT/ITES. His 21-year career also includes 9 years of Financial Institutions coverage. He has extensive experience in IT/ITeS and BFSI sectors.

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Prachi Mehta - Director

Prachi Mehta joined Onward Technologies as a Women Director- Non-Executive Board Member in 2015. She is part of the company’s Nomination and Remuneration Committee (NRC) & Stakeholders Relationship Committee (SRC), playing a crucial role in driving Corporate Governance, Diversity and Inclusion. Prachi has a Master’s degree in Advertising & Marketing from the Leeds Business School in the UK prior to which she graduated from Poddar college in Mumbai.

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Leadership Team

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Vignesh Kumar - EVP and Head Sales (USA & Europe) Experience: ~28 years

Previous stint: Siemens, TCS Education: B.E., M.B.A.

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V Sankar - Sr. Vice President & Regional Business Head Experience: ~30 years

Previous Stint: Mascon Global Education: University of Madras

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Pratish Mehta - EVP - USA Operations & Global Marketing Head

Experience: ~15 years

Education: MBA – Booth Business School & Electronics Engineering from Mumbai

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Manish Soni - Sr. Vice President – Sales (USA) Experience: ~21 years

Previous Stint: LTTS, Aricent Group, Wipro

Education: MBA - University of Chicago, Booth School of Business, Bachelor’s in Electronics & Communication - Delhi College of Engineering

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Satish Ramanan - SVP - Delivery Experience: ~31 years Previous Stint: Teradata India, White Sigma Marketing Solution Education: M.Com., M.B.A.

CA Devanand Ramandasani - Chief Financial Officer Experience: ~15 years

Previous Stint: Datamatics Global Services, Infosys BPO Education: Chartered Accountant

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Pramod Patil - EVP – Sales (India)

Experience: ~32 years

Previous Stint: JCB India, John Deere India Education: BE Mech / MBA / Executive MBA

Nirmala Bhat - Sr. Vice President – Client Engagement Experience: ~21 years

Previous Stint : Altran Technologies, Safran Engineering Services Education: Masters in HRM / BSc

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Sujata Singh - SVP and Global Head - HR

Experience: ~21 years

Previous Stint: Aker Powergas Subsea, WNS Global Services Education: M.B.A

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Awards & Accolades

Onward Technologies Limited has won many awards for its excellence and contribution in the IT industry

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Awarded For igniting the vision of CSR leadership conference entrepreneurial potential of India by NASSCOM Foundation in and building the TiE platform in 2019 2019

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HRD World India HR Infotech India Grand Job creating Congress award Leadership Association Summit Theme wealth creator by IIM Business Summit by Award market leadership Award by School Centre for in 2006 strategies for Tarun Bharat change success by management First Flight Courier in 2000 in 2001

Best implementation of green IT people award for IT- small & medium enterprise pioneering IT industry by Acoris Research Ltd. initiatives in 2007

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Key Milestones

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1991
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2000
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• Mr Harish Mehta founded Onward Technologies as a first generation entrepreneur

• Mr Mehta also formed, an independent 50:50 Joint Venture with Novell Inc (Onward-Novell Private Ltd) which he managed till 2005. (Novell -USA was the world’s second largest personal software company after Microsoft)

• Onward Technologies Ltd had a very successful listing on Stock Exchange in India in Year 1995

• Mr Mehta was awarded CEO of the year award in Year 1996 by World HRD Congress in India

• Expanded Footprint in USA through incorporating a wholly owned subsidiary in USA

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2001
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2010
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• Engineering Design Services became the mainstream focus of the company with the Operation Head Office in Pune

• Expansion in Europe via opening of a wholly owned subsidiary Onward Technologies GmbH and a branch office in UK

• Built a dedicated offshore delivery centre in Pune for one of the company’s top 5 customers

• Mr Jigar Mehta – second generation entrepreneur was appointed Managing Director in May 2016

• Set up multiple Offshore Design Centres (ODCs) in Pune for American & European Automotive and Heavy Machinery companies

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2011
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2020
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• Set up an Engineering Excellence Centre (EEC) in Chennai to provide engineering services to an American Fortune 100 company in the Construction Equipment sector

• Pune Design centre received TISAX certified to meet European OEM standards

• Mr Harish Mehta awarded by Prime Minister Narendra Modi for his contribution to the IT Industry

• Achieved Rs 250 crores of Revenue with 1500+ engineers and Zero Net Debt

• Investments made in Embedded and Electronic Systems capabilities

• Built capabilities towards Digital Engineering Services

• Entered new territories including Bengaluru in India

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Geographical Presence

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FY21 Revenue Breakup – Client Location
USA
36%
India Europe
Onward London 53% 5%
Cleveland Onward Germany UK
Chicago Troy London 6%
Frankfurt
Amsterdam
Pune
Mumbai
Bengaluru
Chennai Onward Mumbai HQ
Onward Troy
HQ
Onward Chicago
Offshore Development Centre
Office Onward Pune
Large Customers with more than 10 Years of Association 7
Large Customers with more than 5 Years of Association 10
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Key Strengths

 Proven expertise in delivering mechanical engineering and digital transformation services to global 1000 companies

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 Ability to ramp-up on-demand across the globe on a short notice

 Flexible business and engagement model to provide agility and cost effectiveness

• Right size organization to provide Stability as well as responsiveness

 Agile, young and dynamic team with a hunger for excellence, supported by experienced and respected promoters & board of directors

 Consistent dividend (5 years in a row), with commitment to improving shareholder return

• Robust cash generation achieved in FY19-21, with clear visibility of cash generation over the next 3-5 years

• Net Debt Free

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Strategic Transformation
FY2021 TARGET FY2025
Top 10 Top 10
Customers Customers
(45%) (70%)
Top 11-50 Customers Top 11-50 Customers
(41%) (20%)
Remaining Customers Remaining Customers
(14%) (10%)
Digital 2%
ITS
Digital
26%
ER&D Transfor ER&D
72% mation 50%
50%
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• Over its 3-decade legacy, Onward Tech has developed an enviable working relationship with marquee companies like Caterpillar, Wabtec, GE, John Deere, Volkswagen, Cummins, JCB, Daimler, and many more.

• Onward Tech is consciously transforming its service offering from low margin traditional IT Services to high margin, high tech services in ER&D and Digital Transformation.

• IT services clients are being transitioned to Digital services gradually, and clients spend is increasing on digital transformation, which will also lead to margin expansion.

• The company’s clear future growth strategy is to entrench deeper into the existing customers by investing in people and enhancing its capabilities and contributing more deeply towards their complex high tech digital transformation, mechanical engineering and embedded technology requirements.

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Future Growth Strategy

New Capabilities

Focus

• Focus on newly established capabilities in Digital Transformation, Industrial IoT, and Industry 4.0

• Build capabilities in sector agnostic practices

• We have already made investments in the right technologies and people.

• People: reskilling, hiring as per industry trends Process: constant upgrade of internal systems to automate and improve efficiency

• Clear strategy for winning larger deals from existing customers and new customers in target markets: (North America, Europe & India)

• Focus on Operational excellence through Automation & simplifying our business model

• Bring the DSO down to 60 days in line with industry levels

• Deepen existing customer relationships, leverage “digital” into ER&D to become a one-stop-shop solution provider with end-to-end capabilities

• Exclusive focus on design thinking, digital transformation and product engineering

Margin Expansion

• Higher margin paying practices in Digital ER&D suite

• Strict focus on further improvement of bottom line i.e. profitability

International Business

• Increase share of overseas business from wellestablished US, UK, and Germany offices

• Robust pipeline for new deals with large global manufacturers

• Technical collaborations & partnerships

• Increase the wallet share from the large 25 OEMS

• Win more clients in Healthcare & Hi-tech segment

Financials

• Increase wallet share from existing clients

• M&A – capability acquisition strategy

• Positive cash flow over the years

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Future Growth Outlook

• The future growth outlook continues to remain positive due to increasing demand from Transportation, Mobility, Industrial Equipment & Heavy Machinery verticals.

• Increase in wallet share from its Top 20 – OEM customers which will result in top line growth between 15% to 20% on annual basis.

• Continued Focus on offshore services business and operational efficiency will improve the EBITDA on yearly basis by double digit.

• Company is Net Debt free & with increased operational efficiency Net Profit before Tax would be 8% to 10% in next 3 years.

• Company is investing in building capability & capacity in the fast growing Embedded and Digital service lines to support existing customers.

• Added 5 global Fortune 500 companies as customers during the year which are expected to become million dollar account/ year in the future.

• US will continue to be the largest international market for the company.

• Contribution of Revenue from US, Europe & UK will be reach 70% in coming 3-5 years.

• Roadmap of opening new subsidiaries in across in Netherlands, Canada in 2021 & in Japan, Sweden in 2022.

• Roadmap of opening new offices in Hyderabad and Noida in 2021 to tap the local digital ER&D opportunities in the respective states.

• Company is investing in new high growth verticals i.e Healthcare & Medical Devices & Hi-tech Industry

• Company is looking at hiring additional 400 engineers in FY 21-22 to meet the customer requirement.

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BUSINESS OVERVIEW

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Services Offered

• Onward is in an enviable position since very few service providers can seamlessly complement the engineering services and IT services and provide the converging digital platform solutions.

• Customers also prefer to build a two-way relationship with a partner who has the capabilities to add value to every task and to fulfil their requirements in a constantly changing world.

• Engineering Research & Development (72%)

• • Product Design & Development

• Electronics and Embedded Engineering

• Virtual Simulation

• Manufacturing Engineering

• Value Engineering

• Technical Publication

• Digital Transformation IT Services (2%) (26%)

• • Digital factory • Application Management • Services

• Data Analytics

• IoT

• Infrastructure Management Services

• Big Data

• Cloud Services

• Retail Banking solutions

• Advance Analytics

• Technical Helpdesk Support

• Automation

• Digital ecosystem management

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Product Cloud & Edge
Development Data
Application
Analytics
Development
Manufacturing IOT
Engineering AI/ML Enterprise
Managed
Embedded Industry 4.0 Services
Advanced AR/VR Enterprise
Engineering Digital
(FEA) Services
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Convergence of Engineering and IT Capabilities >> Transformational Digital Solutions DIGITAL DESIGN DECISIONS

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Industrial
Heavy Equipment
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Servicing the following sectors
Automotive Railways Hi-Tech Mfg. Healthcare
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Engineering Research & Development (ER&D)

• Designing and developing outstanding new engineering products requires expertise across multiple domains.

• The evolution of a product happens over time with constant research, analysis, design studies, and prototyping.

• Onward Technologies has an expert team that understands these challenges and provides customers with end-to-end product design and development services that match their imagination.

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Product Design & Development

• New Product Strategy

• Idea Generation

• Advanced CAD & CAE Systems

• Business Analysis

• Market Testing

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Electronics and Embedded Engineering

• Embedded Software Design

• Embedded Hardware and System Design

• Electronics Board Design

• Sensors

• Simulation

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Virtual Simulation `

• Simulation Models for Prediction

• Durability and Fatigue Testing

• Aerodynamics

• Thermal Comfort

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Manufacturing Engineering

• Layout Development

• Process Planning

• Assembly Line Sequencing

• • Production Support

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Value Engineering

• Cost Analysis

• Vendor Selection and Strategic Sourcing

• Alternative Component Analysis

• Value Analysis and Value Engineering

• Reverse Engineering

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Technical Publication

• Online, Dynamic and Interactive Technical Documentation

• Technical Authoring

• Illustration

• Graphics & Animation

• Documentation Automation

• Website Development and Maintenance

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Digital Transformation

• Digital transformation help small and large organizations maximize the value of their data, unearth insights, build plans and respond in real-time to customer demand.

• Onward digital transformation experts help you in demystifying these complexities and assists you with actionable insights.

• The company’s next-gen analytical solutions build intelligent solutions for data-driven businesses to enhance their productivity and customer experience.

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Integrating businesses with IoT

• Acquiring data e.g. sensors, etc

• IoT Analytics

• Disaster planning

• Predictive Maintenance

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Leverage tech capabilities to digitalize operations

• Implementing Industry 4.0

• Automating businesses

• Connecting and leveraging entire value chain

• Agile

• Real-time analysis

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Maximizing value by achieving the right equilibrium between costs, quality and safety

• Robotic process automation

• Engineering design automation

• Industrial automation

• Computer-aided manufacturing

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Making sense of data for actionable insights and decisions

• Architecture Definition

• Data Integration & Modeling

• Data Science AI & ML

• Chatbot & Virtual Assistants

• Visualization & Dashboarding

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Providing resources on demand without direct management by the user

• Cost Reduction Mechanisms

• Governance Risk management

• Flexible & Virtualized infrastructure

• Real time availability of data to aid decision making

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• QA & Testing

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Case Studies

Engineering and digital services for one of the World’s largest off-highway and construction equipment manufacturers

Built an engineering design automation framework to deliver significant cost benefits through process efficiency & automation.

• Designed and developed containerbased architecture, cloud adoption & migration

• Creating a Machine learning model that learns test cell output and feeding back to NPI programs

• Image processing and Image-based search for after-sales activities

World’s largest off highway and construction

equipment manufacturer

DESIGN

• 2D and 3D engineering drawing supported with engineering service

DECISION

• Process efficiency, cost savings and productivity improvement

German based auto OEM

Transportation and Diesel Locomotive Company

DESIGN

Cost engineered every part of the locomotive and suggested lowest cost possible

DECISION

• 4 mn in overall savings to customer’s business operations

US based medical technology frm

Leading Transportation company

• With deep domain experts in the manufacturing and design process, Onward cost engineered the client’s entire diesel locomotive to enable manufacturing with the lowest cost possible.

• The team also supported the client in finding vendors who can manufacture the locomotives at the lowest cost.

• Leading US-based medical technology firm

Leading UK based Luxury Automotive OEM:

• For one of their premium models, Onward supported the design and development of interior & exterior parts for a facelift and future models. From the feasibility of concepts, Design & Development of various parts, support for tool kickoff to series production.

DESIGN

Diverse sales and marketing data with no insights derived

DECISION

Better data insights improved sales performance

DESIGN

• Re-engineered the entire hospital bed and suddested massive improvement

DECISION

Patient safety factors improved designed around patient comfort

• Onward reverse engineered the entire hospital bed basis on only the photo of the hospital bed without any CAD models/drawings. The company’s product design experts through some innovative reverse engineering added new embedded electronic parts to make the bed adjust automatically for patient safety and comfort. Compatible 3D printing designs made for cost-effective production.

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INDUSTRY OVERVIEW

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Engineering R&D Service Industry

• In a 2019 report by Zinnov, the market addressed by ER&D Service Providers stands at ~USD 80 Billion, at 8% Y-o-Y growth

• The study analyzed the global Engineering R&D (ER&D) space and estimated that the Global ER&D spend by organizations worldwide stands at USD 1.4 Trillion in 2019 and is expected to grow at a CAGR of 7% to cross USD 2.2 Trillion by 2025.

• In 2019, Indian firms clocked $31 billion in ER&D service exports, according to NASSCOM.

• As the largest exporter of ER&D services, this has huge implications for India, and the opportunity could be as large as $100 billion.

• India is rapidly emerging as the destination for innovation and technology by tapping into its robust and thriving start-up ecosystem. Additionally, proactive and supportive policies are also an attractive advantage.

• Recent investments and government initiatives such as Make in India, Skill India, Digital India, and Start-up India have significantly contributed to establishing the country as an attractive destination for ER&D and innovation.

• India surpassed China in attracting funds for engineering R&D, clearly marking India as the next destination for high-end ER&D. Of the overall $100 billion spent globally on outsourced ER&D, India accounted for about $31 to $32 billion. Global companies across Asia are increasing investment in India to leverage the country’s advantages in talent, cost, and policy support.

• According to Everest Group’s Global Locations Annual Report 2019, India accounted for almost one-fourth (23%) of the new centers set up globally in 2018.

• India, today, is home to more than 1,400 Global Capability Centers (GCCs) that conduct offshore product development and provide product engineering services for their headquarters. These GCCs represent some of the largest Fortune 500 companies that have their largest or second-largest R&D centers located here, including GE, Samsung, Cisco, Intel, Daimler Benz, Airbus, Boeing, and Bosch.

• Currently, there are approximately 700,000 engineers involved in ER&D in the country. To service a $100 billion market, we will need to add another one million engineers in the next five years.

Source: Nasscom, Zinnov, FutureFactor360

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USD 2019 Global ER&D Spend
1.4 Tn Expected future CAGR of 7%
Indian ER&D Exports
USD
18-20% share of Indian IT
31 Bn
industry revenue
ER&D employees
700K 12-13% share of industry
workforce
Global Capability Centers
+1,250
in India
ER&D Market Size (In USD Bn)
2,200
2000
1,400
1000
31 100
0
2019 E2025
India Global
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Digital Transformation

• The covid-19 pandemic has accelerated the demand for hi-tech by shriveling human activity into a world of apps. The explosion in online activity has galvanized massive cloud-led adoption, digital adoption, and transformation of the core. Global digital penetration has been reset at lower levels in light of emerging realities, thereby resetting the high-growth phase for technology from up to FY24 to up to FY27 in the least.

• Software & Internet vertical is the largest contributor to ER&D Spend, with USD 196 Billion and also contributes ~40% to the overall Digital Engineering spend, driven by investments in Digital Engineering Stack and new-age technologies such as AI/ML, AR/VR, Big Data Analytics, and Blockchain.

• Digital Engineering is accelerating across industries and is led by Software & Internet, which accounts for USD 160 Billion and is expected to grow at a 22% CAGR to reach USD 527 Billion by 2025.

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• Enterprises are making significant investments in Digital Engineering initiatives to continue to stay relevant. Services-led verticals such as BFSI, Media & Technology, Retail, Healthcare Payers & Providers, and Travel & Hospitality are rushing to build new products and services to drive differentiation, thereby creating ER&D opportunities for providers.

• Indian software industry body Nasscom forecasts global technology services spend would jump to USD4tn in 2025 from USD2.8tn in 2014, with digital (including IoT) forming 60% of the business, logging a phenomenal ten-year CAGR of 24%.

• It also forecasts Indian IT services would catapult to a USD350bn industry by 2025 from USD108bn in 2016 with digital (including IoT) making up a substantial portion of the overall business.

• According to a report by EY, Of the 500 corporates surveyed, for the largest share of their investment over the past two years, the top four were cloud (60%), data and advanced analytics (52%), the Internet of Things (IoT) (50%) and AI (47%).

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Source: Zinnov, Nasscom, Edelweiss Research, EY

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Opportunities

R&D

• Design Automation

• Simulation – CFD/FEA

MEG

• Simulation

• Digital twin study

• Cobots

Business Process

• Process Automation using RPA

After Sales

• Issue Management

R&D

• Connected Devices

• ADAS/AUTOSAR

MEG

• Process Automation

• Robotic Simulation

After Sales

• Predictive maintenance

Opportunities we are uniquely positioned to capture…

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Automation Analytics
IOT & Cloud & Edge
Integration
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R&D

• Time series analysis

• NPI

• AR/VR

MEG

• Inventory Management

Sales

• Demand Forecast

• Cost analysis

After Sales

• Warranty

• Customer Loyalty analytics

• NLP

R&D

• Container Architecture

• Real time data processing

• IT

• Cloud Architecture

• Devops

• Hybrid Cloud

Target - existing base of Fortune 1000 OEM’s and gradual addition of new clients

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FINANCIAL OVERVIEW

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Historical Standalone Profit & Loss

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Historical Standalone Profit & Loss
Particulars (INR Mn) FY18 FY19 FY20 FY21
Operational Income 1,066 1,182 1,806 1,727
Total Expenses 1,030 1,032 1,660 1,531
EBITDA 36 150 145 196
EBITDA Margins (%) 3.38% 12.69% 8.03% 11.35%
Other Income 65 50 65 85
Depreciation 46 48 102 93
Finance Costs 22 21 33 21
PBT 33 131 75 167
Tax 11 37 21 40
Profit After tax 22 94 54 127
PAT Margins (%) 2.06% 7.95% 2.99% 7.35%
Other Comprehensive Income (1) (4) 3 1
Total Comprehensive Income 21 90 57 128
Diluted EPS (INR) 1.33 5.70 3.26 7.50
FY20 and FY21 numbers have been restated after inclusion of Onward eServices Ltd, a wholly owned subsidiary, which has been merged with Onward Technologies Ltd as on March 25, 2021. 24
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Historical Standalone Balance Sheet

	Historical Standalone Bal
	Particulars (INR Mn)	FY19	FY20	FY21
	ASSETS
	Non-Current Assets
	Property,Plant & Equipment	75	70	164
	Intangible assets	56	41	39
	Intangible assets under development	2	-	1
	Right of use asset	-	146	83
	Financial Assets
	(i) Investments	388	121	121
	(ii)Loans	20	29	23
	Deferred tax assets	5	27	23
	Income tax assets(net)	101	193	111
	Other non-current assets	4	1	5
	Sub Total Non Current Assets	651	628	570
	Current Assets
	Financial Assets
	(i)Trade Receivables	215	339	283
	(ii)Cash & cash equivalents	21	75	119
	(iii)Bank balance other than above	3	42	10
	(iv)Contract assets	36	32	127
	(v)Other financial assets	21	3	2
	Other Current Assets	33	58	61
	Sub Total Current Assets	329	549	602
	TOTAL ASSETS	980	1,178	1,172

nce Sheet
Particulars (INR Mn)	FY19	FY20	FY21
EQUITY AND LIABILITIES
Equity
Share Capital	158	160	163
Other Equity	454	455	573
Total Equity	612	615	736
Non Current Liabilities
(i)Borrowings	1	-	6
(ii)Lease liabilities	-	104	55
Employee benefit obligations	21	25	46
Sub Total Non Current Liabilities	22	129	107
Current Liabilities
(i)Borrowings	161	68	-
(ii)Trade Payables	46	96	78
(iii)Other Financial Liabilities	79	92	126
(iv)Lease Liabilities	-	48	38
Provisions	9	20	11
Contract liabilities	24	58	28
Other current liabilities	27	52	48
Sub Total Current Liabilities	346	434	329
Sub Total Liabilities	368	563	436
TOTAL EQUITY and LIABILITIES	980	1,178	1,172

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Historical Consolidated Profit & Loss

Particulars (INR Mn)	FY18	FY19	FY20*	FY21*
Operational Income	2,445	2,610	2,715	2,404
Total Expenses	2,333	2,386	2,482	2,231
EBITDA	112	224	233	173
EBITDA Margins (%)	4.58%	8.58%	8.58%	7.20%
Other Income	48	12	11	53
Depreciation	55	57	113	104
Finance Costs	30	27	35	23
PBT	75	152	96	99
Tax	8	51	34	25
Profit After tax	67	101	62	74
PAT Margins (%)	2.74%	3.87%	2.28%	3.08%
Other Comprehensive Income	1	8	19	(3)
Total Comprehensive Income	68	109	81	71
Diluted EPS (INR)	4.07	6.17	3.76	4.35

• FY20 and FY21 numbers have been restated after inclusion of Onward eServices Ltd, a wholly owned subsidiary, which has been merged with Onward Technologies Ltd as on March 25, 2021.

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Historical Consolidated Balance Sheet

	Historical Consolidated Ba
	Particulars(INR Mn)	FY19	FY20	FY21
	ASSETS
	Non-Current Assets
	Property,Plant & Equipment	98	80	171
	Intangible assets	57	41	39
	Intangible assets under development	2	-	1
	Right of use asset	-	159	88
	Financial Assets
	(i)Loans	29	30	31
	Deferred tax assets	17	28	33
	Income tax assets(net)	158	193	111
	Other non-current assets	6	2	-
	Sub Total Non Current Assets	367	533	474
	Current Assets
	Financial Assets
	(i)Trade Receivables	489	498	408
	(ii)Cash & cash equivalents	43	178	285
	(iii)Bank balance other than above	8	44	9
	(iv)Contract assets	86	42	134
	(v)Other financial assets	11	1	2
	Income tax assets(net)	19	-	-
	Other Current Assets	44	65	64
	Sub Total Current Assets	700	828	902
	TOTAL ASSETS	1,067	1,361	1,376

Particulars(INR Mn)	FY19	FY20	FY2
EQUITY AND LIABILITIES
Equity
Share Capital	158	160	16
Other Equity	452	520	58
Total Equity	610	680	74
Non Current Liabilities
(i)Borrowings	6	-
(ii)Lease liabilities	-	109	5
Employee benefit obligations	34	25	4
Deferred tax liabilities	5	7
Sub Total Non Current Liabilities	45	141	10
Current Liabilities
(i)Borrowings	155	181	14
(ii)Trade Payables	61	76	7
(iii)Other Financial Liabilities	141	133	15
(iv)Lease Liabilities	-	57	4
Provisions	10	21	1
Income tax liabilities	-	5
Contract liabilities	1	5	3
Other current liabilities	44	62	6
Sub Total Current Liabilities	412	540	52
Sub Total Liabilities	457	681	63
TOTAL EQUITY AND LIABILITIES	1,067	1,361	1,37

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Consolidated Financial Highlights

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Revenue (INR Mn) EBITDA (INR Mn)
233
224
2,715
173
2,610 8.58% 8.58%
7.20%
112
2,445
2,404
4.58%
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
EBITDA EBITDA Margin
0.23 Net D/E (x) 100.00 DSO
0.18 90.00
80.00 75.18 73.97 75.53
67.43
70.00
60.00 63.05 62.96
62.20
(0.06) 50.00 56.86
(0.19)
40.00
30.00
FY18 FY19 FY20 FY21
FY18 FY19 FY20 FY21
DSO with Unbilled in Days Billed DSO in Days
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EBITDA (INR Mn) PAT (INR Mn)
233
224
101
173
8.58% 8.58% 74
67 3.87%
7.20% 62
112
3.08%
2.74%
4.58% 2.28%
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
EBITDA EBITDA Margin PAT PAT Margin
DSO ROE and ROCE (%)
75.18 73.97 75.53 27.36%
67.43
19.64%
15.97%
14.22%
63.05 62.96
62.20
56.86 16.61%
13.49%
9.16% 9.85%
FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21
DSO with Unbilled in Days Billed DSO in Days RoE (%) RoCE (%)
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Key Metrics (Consolidated)

Revenue by Business

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2%
33% 31% 27% 26%
67% 69% 73% 72%
FY18 FY19 FY20 FY21
ER&D ITS Digital
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Revenue by Industry

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4% 4% 5% 8%
38% 34% 27% 26%
26% 24%
26%
27%
42% 42%
31% 36%
FY18 FY19 FY20 FY21
Industrial & Heavy Machinery Transportation & Mobility
Others Healthcare
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Revenue by Contract Type

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31% 26% 22% 25%
69% 74% 78% 75%
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FY18 FY19 FY20 FY21 Time and Material Fixed Time, Fixed Price

Revenue by Client

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8% 12%
7%
7%
29% 32% 31%
26%
40% 46% 47% 45%
FY18 FY19 FY20 FY21
Top 10 Clients Top 5 Clients Top Client
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Revenue Mix

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30% 30% 32% 30%
70% 70% 68% 70%
FY18 FY19 FY20 FY21
Onsite Offshore
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Employees Metrics

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134 128 120
114
2,357 2,429 2,377 1,973
FY18 FY19 FY20 FY21
India Headcount Headcount Outside India
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Capital Market Data

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250%
200%
150%
100%
50%
0%
-50%
Onward Sensex
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Dividend per Share (INR)

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3.00
1.50 1.50
1.00
FY18 FY19 FY20 FY21
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Price Data (As of 31st March 2021)*	Price Data (As of 31st March 2021)*
Face Value	10.0
Market Price	113.
52 Week H/L	137.9/34.
Market Cap (INR Mn)	1,849.
EquityShares Outstanding (Mn)	16.
1 Year Avg. TradingVolume('000)	126.
1 Year Avg. Net Turnover(Mn)	11.

Shareholding Pattern (as on 31st March 2021)

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Public
38.26%
Promoters
61.71%
FII & DII's
0.03%
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• Source: BSE and NSE

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Disclaimer

Onward Technologies Limited

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forwardlooking statements" based on the currently held beliefs and assumptions of the management of Onward Technologies Limited, which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results to differ materially from the results, financial condition, performance, or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment, and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties, and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations, or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness, and reasonableness of the contents of this Presentation. This Presentation may not be all-inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

For further details, please feel free to contact our Investor Relations Representatives:

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Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903 9500 Email: onward@valoremadvisors.com

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