PG Electroplast Limited — Investor Presentation 2021

Aug 23, 2021

==> picture [537 x 124] intentionally omitted <==

August 23, 2021

To, To, The Manager (Listing) The Manager (Listing) BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 533581 Scrip Symbol: PGEL

By means of BSE Listing Centre By means of NEAPS

Dear Sir,

Sub: Investor Presentation

We enclose a copy of Investor Presentation pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This is for your information and record please.

Thanking you,

For PG Electroplast Limited

Digitally signed Sancha by Sanchay Dubey y Dubey Date: 2021.08.23 17:14:44 +05'30'

(Sanchay Dubey) Company Secretary

==> picture [179 x 19] intentionally omitted <==

==> picture [103 x 61] intentionally omitted <==

PG Electroplast Company Overview August 2021

==> picture [91 x 41] intentionally omitted <==

==> picture [587 x 540] intentionally omitted <==

Disclaimer

This presentation has been prepared for informational purposes only. This Presentation does not constitute a prospectus, Offering circular or offering memorandum and is not an offer or initiation to buy or sell any securities, nor shall part or all of this presentation from the basis of, or to be relied on in connection with any contract or investment decision in relation to any securities.

This Presentation contains forward looking statements based on the currently held beliefs of the management of the company which are expressed in good faith and in their opinion reasonable. The forward looking statements may involve known and unknown risks uncertainty and other factors which may cause the actual results, financial condition performance or achievements of the Company or industry results materially from the results, Financial Conditions, Performance, or achievements of the Company.

These forward-looking statements represent only the Company’s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward looking statements.

==> picture [91 x 41] intentionally omitted <==

2

Agenda

Company Overview Manufacturing Capabilities Growth strategy Key Financials

==> picture [91 x 41] intentionally omitted <==

3

Please click on the logo or this link to view a short video about our company! Corporate Film

==> picture [754 x 394] intentionally omitted <==

4

About PG Electro last p

==> picture [362 x 209] intentionally omitted <==

Key Manufacturing Capabilities Plastic Finished Product Moulding Assemblies

§ PG Electroplast Limited (PGEL) is the flagship company of PG Group, which had started its journey in 1977. PG Electroplast, formally set up in 2003, and is a leading, diversified Indian Electronic Manufacturing Services provider .

• § PGEL specializes in Original Design Manufacturing (ODM) ,

• Original Equipment Manufacturing (OEM) and Plastic Injection Moulding , providing One Stop Solutions to 30+ leading Indian and Global brands .

• § PGEL has built six manufacturing units across Greater Noida

• in Uttar Pradesh, Roorkee in Uttarakhand and Ahmednagar in Maharashtra and has 2000+ employees .

Specialized AC Tool Printed Circuit PU Components Manufacturing Boards Paintshop

==> picture [91 x 41] intentionally omitted <==

5

==> picture [477 x 224] intentionally omitted <==

==> picture [487 x 225] intentionally omitted <==

AC Outdoor Unit Assembly capabilities developed. Developed and launched ODM platform for Fully Automatic Washing Machines. Developed and launched ODM platform for Air Coolers.

==> picture [120 x 55] intentionally omitted <==

==> picture [128 x 49] intentionally omitted <==

==> picture [425 x 199] intentionally omitted <==

----- Start of picture text -----

for Air Coolers.
2021
Our Journey
----- End of picture text -----

==> picture [88 x 112] intentionally omitted <==

==> picture [86 x 126] intentionally omitted <==

==> picture [95 x 121] intentionally omitted <==

==> picture [73 x 165] intentionally omitted <==

==> picture [112 x 66] intentionally omitted <==

==> picture [104 x 43] intentionally omitted <==

==> picture [91 x 41] intentionally omitted <==

6

==> picture [889 x 166] intentionally omitted <==

Air Washing LED Conditioners Machines Televisions Coolers Industries Served Automotive Bathroom Consumer Mobile Components Components Fittings Electronics

==> picture [91 x 41] intentionally omitted <==

7

==> picture [828 x 16] intentionally omitted <==

Key Clients

==> picture [205 x 36] intentionally omitted <==

==> picture [64 x 65] intentionally omitted <==

==> picture [100 x 27] intentionally omitted <==

==> picture [46 x 43] intentionally omitted <==

==> picture [112 x 55] intentionally omitted <==

==> picture [75 x 70] intentionally omitted <==

==> picture [46 x 52] intentionally omitted <==

==> picture [77 x 40] intentionally omitted <==

==> picture [150 x 37] intentionally omitted <==

==> picture [50 x 74] intentionally omitted <==

==> picture [140 x 38] intentionally omitted <==

==> picture [149 x 65] intentionally omitted <==

==> picture [162 x 36] intentionally omitted <==

8

Greater Noida, UP Washing Machines, PCB Assemblies, Air Coolers, LED TVs, Plastic Moulding, Tool Manufacturing Strategically Located Manufacturing Locations Ahmednagar, MH

Ahmednagar, MH Air Conditioners, Air Coolers, Plastic Moulding

Roorkee, UK Washing Machines, Plastic Moulding

==> picture [91 x 41] intentionally omitted <==

9

Key Leadership

==> picture [91 x 41] intentionally omitted <==

==> picture [110 x 114] intentionally omitted <==

==> picture [109 x 110] intentionally omitted <==

Mr. Anurag Gupta Chairman & ED – Technical More than 29 years of experience in EMS. Handles technical policies, quality assurance, technological advancement, and R&D.

Mr. Vishal Gupta Managing Director - Finance

Mr. Vikas Gupta Managing Director - Operations

More than 26 years of experience in EMS. Handles F&A, Budgeting & Planning, government and customer relationships and various compliances.

More than 26 years of experience in EMS. Handles operations, business strategy, industry relations and organization governance.

Mr. Pramod Gupta Chief Financial Officer

Mr. Ashwani Tyagi Head of Business Development

More than 23 years of experience across brokerage firms and mutual funds in business and financial consulting, research and analysis.

More than 19 years of experience in marketing, product localization, project management and customer management.

==> picture [110 x 110] intentionally omitted <==

Mr. Vikas Koul Head of Operations More than 21 years of experience in EMS. Handles operations, business development, business strategy, manufacturing innovation.

Mr. Bharat Batra Head of Operations

More than 28 years of experience in EMS. Handles project management, administration, operations and supply chain management.

• § The largest plastic components supplier for Consumer Durables industry in India.

• § One-Stop Solutions Provider to leading Consumer Durable brands.

Strengths

• § Diversified Product Portfolio enables faster customer acquisition.

• § In-house Tool Design & R&D capabilities.

• § Strong and long relationships with marquee clients.

• § Highly experienced management team.

==> picture [91 x 41] intentionally omitted <==

11

Company Overview

Agenda

Manufacturing Capabilities Growth strategy Key Financials

==> picture [91 x 41] intentionally omitted <==

12

Plastic Moulding

PG Electroplast has over 250 moulding machines , ranging from 90T to 1850T , across five plants in Greater Noida, Roorkee and Pune. The company’s USP lies in in-house design and engineering using the latest technologies that allow it to meet global manufacturing quality standards . The company specialises in developing small, medium and large sized, high-precision surface critical injection moulded components and offers a number of specialised post-moulding operations to meet customer needs.

Injection Moulding

==> picture [201 x 124] intentionally omitted <==

Blow Moulding

==> picture [201 x 124] intentionally omitted <==

Vertical Moulding

==> picture [201 x 124] intentionally omitted <==

Insert Moulding

==> picture [201 x 124] intentionally omitted <==

Thermoset Moulding

==> picture [201 x 124] intentionally omitted <==

Gas-Assisted Injection

==> picture [201 x 124] intentionally omitted <==

==> picture [91 x 41] intentionally omitted <==

13

==> picture [91 x 41] intentionally omitted <==

==> picture [472 x 178] intentionally omitted <==

Air Coolers

Washing Machines

==> picture [206 x 267] intentionally omitted <==

==> picture [179 x 268] intentionally omitted <==

Final Product Assemblies

PG Electroplast is an end-to-end solutions provider for product design and final product assemblies for products like Washing Machines , Air Conditioners , Air-Coolers , LED TVs, Toilet Seats, In-Wall Tanks etc . The company currently caters to both OEM and ODM demand , with a continuous focus on delivering on the . highest standards of quality

14

Plastic Components

==> picture [235 x 148] intentionally omitted <==

System Tubing

==> picture [235 x 152] intentionally omitted <==

Heat Exchangers

==> picture [235 x 152] intentionally omitted <==

Powder Coating Plant Sheet Metal Components

Production starts in September 2021.

Specialized AC Components

PGEL has been manufacturing plastic moulded AC components since 2003 . In 2018, in an effort to improve value addition , PGEL decided to invest and develop capacities for 5mm and 7mm Heat Exchanger lines , injection Moulding components , system copper tubing with CNC bending, sheet metal components , and powder coating treatment capabilities. PG will be well positioned to deliver innovative, Completely Built Units 2021 onwards.

==> picture [91 x 41] intentionally omitted <==

15

Tool Manufacturing

We develop small to medium size moulds for a wide range of applications which include, Automotive Applications, White Goods, Home & Kitchen Appliances, Lighting and Electrical Equipment. The complete range of services from tool design to tool manufacturing and injection moulding under one roof makes the PG a total tooling solutions provider .

==> picture [204 x 144] intentionally omitted <==

----- Start of picture text -----

Mould Design
----- End of picture text -----

==> picture [204 x 304] intentionally omitted <==

----- Start of picture text -----

CNC Milling
Surface Finishing
----- End of picture text -----

DFM Analysis

==> picture [201 x 124] intentionally omitted <==

EDM Machining Quality Assurance

==> picture [201 x 124] intentionally omitted <==

==> picture [91 x 41] intentionally omitted <==

16

PCB Assemblies

SMT Lines

==> picture [269 x 182] intentionally omitted <==

PG Electroplast has unique & innovative solutions for all kinds of printed circuit board assemblies. We help to develop a wide range of applications, used across industries, on a turnkey basis (including component procurement, assembly, testing, packing & shipping). Our SMT lines & Wave Soldering machines are equipped to handle both RoHS & NonRoHS PCB Assembly work . Our processes & operations conform to ISO standards, assuring adherence to the highest industry benchmarks .

PCB Assembly Lines

Through Hole Machines

==> picture [268 x 183] intentionally omitted <==

==> picture [268 x 182] intentionally omitted <==

==> picture [91 x 41] intentionally omitted <==

17

Overhead Conveyors

==> picture [240 x 180] intentionally omitted <==

Gas Fired Baking Oven

==> picture [239 x 204] intentionally omitted <==

Pre-treatment Line

==> picture [239 x 180] intentionally omitted <==

Automated Solution

==> picture [240 x 204] intentionally omitted <==

PU Paint Shop

PGEL has installed a state-of-the-art PU Paint shop in Greater Noida. The Shop is highly capable and can provide superior surface finish solutions for all kinds of systems, for parts of different shapes and sizes. Due to the durable and premium nature of the finish achieved through this treatment, there is high demand for the Paint Shop from our customers in the automotive, electrical and consumer durable industries . An advanced, automated facility, it is equipped to handle all kinds of painting needs.

==> picture [91 x 41] intentionally omitted <==

18

==> picture [556 x 516] intentionally omitted <==

----- Start of picture text -----

Concept
Evaluation
Product Prototype
Release Stage
Product
Development
Lifecycle
Pilot Design
Production Verification
----- End of picture text -----

Research and Development

PG has experienced R&D teams which enable it to offer comprehensive, endto-end ODM product development services like:

• § Product Conceptualization

• § Design and Prototyping

• § Performance And Energy Optimization

• § Product and Tool Costing

• § Tool Development

• § Supply Chain Development

19

Agenda

Company Overview Manufacturing Capabilities Growth strategy Key Financials

==> picture [91 x 41] intentionally omitted <==

20

Industry Outlook

Government reforms such as Digital India, Make in India, Power for all and Jan Dhan-AadharMobile Trinity are providing fresh impetus to the Consumer appliance and durable Industry

The Rapid rate of urbanization, growth of young population with rising income levels is leading to large emerging middle class in India. Implying huge potential demand for the consumer appliance and durable market in coming years.

Low penetration levels, falling prices of durables and electronics and changing lifestyle of the Indian consumer are expected to remain big demand drivers for the consumer durable and electronics Industry in India in near future.

Further the Government’s initiatives of promoting electronic manufacturing and treating the industry as one of the key pillars of the Digital India Program, opens new and exciting opportunities for the Industry

The Management is enthused about the overall opportunity size and anticipates high growth rates in the industry segments where, company has presence.

==> picture [91 x 41] intentionally omitted <==

21

Future Growth Strategy

• Washing Machines

• Company foresees large • Room Air conditioner opportunities in plastic • Refrigerators

• moulding in consumer • Ceiling Fans

• durables in appliances like: • Sanitaryware products

• • Air coolers

• Opportunities in the ODM • Washing machines

• space for products like: • Room Air Conditioners

• • Better profitability & higher cash flows

• Improving operational ~~• Reinvesting to improve~~

• efficiencies leading to: strategic capabilities to reap future benefits

22

Future Outlook

• Product business to drive growth for the company

• new

• Company is developing offerings in focus segments and will be launching the same in coming quarters

• Company’s management see exciting times ahead for all its business segments.

==> picture [56 x 106] intentionally omitted <==

Gradual improvement in margins due to better operational efficiencies and higher operating leverage

==> picture [90 x 133] intentionally omitted <==

Improving profitability and higher cashflows, will lead to better capital efficiency and stronger balance sheet. Company is uniquely positioned in the consumer durable & automotive plastics space in India and would derive higher revenue growth once overall industry growth picks up.

==> picture [92 x 42] intentionally omitted <==

23

Agenda

Company Overview Manufacturing Capabilities Growth strategy Key Financials

==> picture [91 x 41] intentionally omitted <==

24

• The Company has grown ~2.7 times in five years from a revenue of INR 263 crores in 2015-16 , to INR 706 crores in 2020-2021 at a 22% CAGR with the EBITDA increasing at a 20% CAGR. Key Financials • Over the

• Over the past five years , the company has done a cumulative Capital Expenditure of

• close to INR 220 Crores. This has ensured that PG has built up capabilities for future growth.

==> picture [870 x 292] intentionally omitted <==

----- Start of picture text -----

REVENUES EBITDA
(Figures in INR Crores) (Figures in INR Crores)
800 52
706
50
642
42
600
40
512
34
30
405
30
400 369 24
21
263
20
200
10
0 0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
22% CAGR 20% CAGR
----- End of picture text -----

==> picture [91 x 41] intentionally omitted <==

25

• Company has been able to strengthen its balance sheet by completing its Equity raise .

• program

Major Highlights of 3M 1QFY22

• Due to COVID-19 mandated shutdowns, plants were shutdown for end April and full May 2021. The production was only partially restored in June’20. Production loss for the quarter has been significant across segments.

• Company is seeing increased inquires for business from new and existing clients and we remain very optimistic on the future growth prospects of the business.

• All the the capex plans for capacity additions in FY2022 are on track and company is hopeful of completing them by November.

• New product development across focus areas is almost completed and company is planning to launch several new products in FY2022.

==> picture [91 x 41] intentionally omitted <==

26

1QFY2022 Profit

& Loss Highlights

• Reasonable quarterly margins , despite Covid-19 lead shutdown during the quarter.

• Cost & overhead controls counter the to negative operating leverage .

• The Orderbook for product business is promising for the year and company remains optimistic on the outlook.

==> picture [738 x 277] intentionally omitted <==

----- Start of picture text -----

(Figures in FY2021 FY2022 Growth
₹ million) Q1 Q1 (%) YoY
Revenue 373.4 1380.3 269.7%
EBITDA (23.6) 98.1 L to P
Net Profit (84.9) 6.1 L to P
L to P
Diluted EPS (in INR) (4.3) 0.3
----- End of picture text -----

==> picture [91 x 41] intentionally omitted <==

27

• EBITDA margins are largely stable due strict cost and overhead control despite negative operating leverage . Financial • Metrics Working capital remained at normalized levels despite disruption .

• Revenue growth outlook is improving , while margin outlook is stable .

Key Ratios		FY2021 Q1 FY2021 Q4 FY2022 Q1 FY2021 12M
EBITDA Margin (%)		(6.3%) 7.6%* 7.1% 7.4%****
Net Profit Margin (%)		(22.7%) 3.2% 0.4% 1.6%
DSO (Days)		41.8 76.4 30.6 76.4
Inventory (Days)		73.7 60.7 50.5 60.7
ROCE (%)***		NA 12.9% 15.5% 12.9%

• Q4 margins adjusting for one off gas charging business are 8.7%.

==> picture [91 x 41] intentionally omitted <==

FY21 Q4 margins adjusting for one-off gas charging business are 7.9%. *** RoCE calculation is based on TTM Basis for all periods**

28

			Business Breakup 2021 Q4 2022 Q1 FY2020 FY2021	Business Breakup 2021 Q4 2022 Q1 FY2020 FY2021	Business Breakup 2021 Q4 2022 Q1 FY2020 FY2021	Business Breakup 2021 Q4 2022 Q1 FY2020 FY2021	Business Breakup 2021 Q4 2022 Q1 FY2020 FY2021	Business Breakup 2021 Q4 2022 Q1 FY2020 FY2021
Business Breakup • Washing Machine and AC IDU Business has seen robust growth in on a low base, and company is making further investments in the washing machine and AC platforms. • Products business remains the focus area and growth driver for the company. • For FY2022 company is making significant CAPEX towards product development and capacity creation and all plans remain on track.			Business Breakup
			Business Breakup
							2021 Q4 2022 Q1	FY2020 FY2021
		• • •	Washing Machine and AC IDU Business has seen robust growth in on a low base, and company is making further investments in the washing machine and AC platforms. Products business remains the focus area and growth driver for the company. For FY2022 company is making significant CAPEX towards product development and			Plastic Moulding	55% 62%
						Electronics	3% 5%	7% 6%
						Tool Manufacturing	1% 0%	1% 1%
						Product sale	29% 33%	24% 27%
						Others	12%	6%
						Total	100% 100%	100% 100%
		capacity creation and all plans remain on track.

• For FY2022 company is making significant CAPEX towards product development and capacity creation and all plans remain on track.

==> picture [91 x 41] intentionally omitted <==

29

Profit & Loss Statement

==> picture [86 x 40] intentionally omitted <==

Figures in INR Millions	Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Net Sales	2,603 3,664 3,994 5,084 6,394 7032
Growth (%)	9.0% 40.8% 9.0% 27.3% 25.8% 10.0%
Expenditure	2.422 3,456 3,749 4,777 5,993 6534
Increase/Decrease in Stock	(48) 19 (109) (41) (70) 32
Raw Material Consumed	1961 2792 3200 4032 5108 5533
Power & Fuel Cost	97 115 117 144 166 161
Selling and Distribution Expenses	35 51 55 62 68 39
Manufacturing Expenses	127 85 71 79 85 126
Personnel Costs	262 329 349 401 539 550
Administrative Expenses	29 41 42 44 54 61
Miscellaneous Expenses	18 26 25 56 45 32
Operating Profit	180 207 246 307 399 498
OPM (%)	6.9% 5.7% 6.1% 6.0% 6.2% 7.1%
Growth (%)	54.9% 14.7% 18.6% 24.9% 30.1% 24.7%
(+) Other income	32 31 53 32 25 26
EBDITA	213 238 299 339 424 524
( - ) Depreciation	97 106 117 134 163 180
EBIT	116 133 181 205 261 344
( - ) Interest & Finance charges	97 99 106 103 148 184
( - ) Exceptional Expenses	0 0 0 0 (20) (8)
PBT	19 34 75 102 93 151
PAT	19 34 75 100 26 116

June 2021 Balance sheet

==> picture [91 x 42] intentionally omitted <==

==> picture [898 x 22] intentionally omitted <==

A. EQUITY AND LIABILITIES	As on 31.06.2021	As on 31.03.2021		B. ASSETS	As on 31.06.2021	As on 31.03.2021
(a) Share capital	196.9	196.9		(a) Fixed assets	2729.3	2725.8
(b) Reserves and surplus	2499.1	1,727.8		(b) Capital Work in Progress	68.7	65.6
Sub-Total - Shareholders' Funds	2696.0	1,924.7		(c) Other Financial Assets	57.7	32.9
(a) Long-term borrowings	953.0	898.4		(d) Other non-current assets	172.8	139.3
(b) Long-term provisions	116.7	112.4		Sub-Total - Non-Current Assets	3028.5	2963.7
Sub-Total - Non-Current Liabilities	1069.7	1010.8		(a) Inventories	877.2	926.1
(a) Short-term borrowings	743.4	656.3		(b) Trade receivables	674.4	1472.6
(b) Trade payables	733.2	1533.5		(c) Cash and cash equivalents	874.1	149.6
(c )Other current liabilities	521.5	664.5		(d) Short-term loans and advances	58.3	69.0
(d) Short-term provisions	4.2	4.1		(e) Other current assets	255.4	212.9
Sub-Total - Current Liabilities	2002.2	2,858.3		Sub-Total - Current Assets	2739.5	2830.2
TOTAL - EQUITY AND LIABILITIES	5768.0	5793.9		TOTAL-ASSETS	5768.0	5793.9

• The working capital remains under control and working capital days are 39 days .

• The Capital Efficiency remains the focus area of the company and Overall Asset Turns will improve going forward .

==> picture [186 x 124] intentionally omitted <==

Thank You for Your Time and Consideration!

. We would love to hear from you. You can reach us on investors@pgel.in