Salzer Electronics Limited

This presentation has been prepared by Salzer Electronics Limited (the "Company") solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but 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 a// of the information that you may consider material. Any liability in respect of the contents ⁰¹⁵ or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward—looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward—looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Financial Highlights

Commenting on the results, Mr. Rajesh Doraiswamy, Joint Managing Director, said :

"I am happy to share that during the 9M FY20 we have registered ^a 7.4% Y-o-Y growth in our revenues. This growth was mainly driven by demand in our switchgear business segment mainly in Export markets. The increase in contribution from exports of Industrial Switchgears helped us to improve our margins and also helped create visibility for the Salzer brand in different geographies.

The market sentiments in India continue to be sluggish and demand outlook remains challenging across categories as we have seen during the quarter as the wires & Cables business has declined by 19% Y-o-Y. We continue to take necessary action in order to tackle this and are confident of achieving our yearly targets of revenue on back of our quality products and long-term relations with our clients.

We continue to focus on adding new, niche and high margin products, enter new geographies and offer total and customised electrical solutions to our existing and new customers. To aid to this we are constantly on the lookout for any new opportunities for technical associations to strengthen the base for our product offerings.

Overall, we remain committed to our set agenda of delivering sustainable growth. ^I thank all our stakeholders for their continued support and faith in our Company"

iI I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I \

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^I Salzer Electronics an approved vendor for Schneider was awarded the Best Collaborative Supplier for 2019
^I In line with the focus on increasing product offerings and expanding footprint into newer segments along with access to all India dealer network, the Company acquired 72.32% stake in Kaycee Industries Ltd for a total consideration of Rs 18.10 crore
^I Kaycee Industries Limited a "pre-independence" Company with a legacy of "three quarter of a century", being pioneer in Industrial Switchgear business and among the leading provider of electrical and electric component in India with manufacturing facility located at Ambernath — Thane
^I Appointed Mr. Raman Krishnamoorthy as Vice President Finance & Operations of Kaycee Industries. Mr. Raman is a Finance Professional with over 21 years of experience in various aspects of financial and operational Management — Cost optimization, operating Controls, Accounting, Tax, Reporting, Budgeting, Cash & Treasury Management, Legal & Compliance, Insurance and Risk Management

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[Q3 FY20	Highlights Financial		'		EEIZEI"

Crore Rs. in	Q3 FY20	Q3 FY19	Standalone % Y-o-Y	Q2 FY20	Consolidated Q3 FY20
Revenue Net Raw	134.7	143.5	(6.1%)	137.8	140.4
Materials Employee Cost	96.3 7.2	106.6 7.6		101.8 6.2	99.1 8.4
Other Expenses Expenditure Total	14.5 118.0	13.2 127.4		12.3 120.3	15.8 123.2
EBITDA EBIDTA Margin (%)	16.7 12.40%	16.1 11.21%	3.8% 119 bps	17.5 12.70%	17.1 12.21%
Income Other Depreciation	0.1 3.7	0.1 3.4		0.3 3.6	0.1 3.8
Finance Cost Interest/ Tax Before Profit	5.0 8.1	4.9 8.0		5.4 8.8	5.0 8.5
Tax	2.6	2.6		2.8	2.6
Tax After Profit Margin Tax After (%) Profit	5.5 4.09%	5.4 3.76%	1.9% 33 bps	5.9 4.31%	5.8 4.14%
EPS Basic (Rs.)	3.44	3.39	1.5%	3.72	3.59

^I ^I Increase in EBITDA Margin driven by higher exports of industrial switch gear products

I' ^I Contribution from exports increased to 20.7%, as against 15.6%

Consolidated - on account of acquisition of 74.8% shares of Kaycee Industries in Q2 FY20 8

Industrial Switchgear 50.0% of net revenues, YoY increase of 6.7%, driven by increase in demand for three phase dry type transformers and higher exports
" Wires & Cables 41.1% of net revenues, a y-o-y decline of 19%, on account of low demand in domestic market
Buildings Products 6.8% of net revenues. The revenue decreased by 3% on account of sluggish demand in domestic real estate industry $\blacksquare$
Energy Management 2.2% of net revenue order book driven business; revenue incurred from AMC charges for the past orders executed

			EEIZEI"

Crore	9M FY20	9M FY19
Rs. in Revenue Net	434.6	404.7	7.4%
Raw Expenses Material Employee Expenses	324.6 19.7	301.2 17.5
Other Expenses	39.4	39.2
Expenditure Total EBITDA	383.8 50.9	357.9 46.8	8.8%
EBITDA Margin (%) Income Other	11.71% 1.0	11.56% 0.4	15 bps
Depreciation	10.8	9.7
Finance Cost Interest/ PBT	15.7 25.4	14.3 23.1
Tax PAT	8.2 17.2	8.2 14.9	15.4%
		3.69%	28 bps
PAT Margin (%) EPS Basic (Rs.)	3.97% 10.79	9.93	8.7%

^I Wires & Cables 47.3% of total revenues, YoY increase of 4.9%
Buildings Products 6.4% of total revenues, YoY decline of 11% I
^I Energy Management 2.0% of total revenue. This is an order book driven business and increase in revenues have been drive from increase in AMC I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

I I I I \

				________ '		EEIZEP
I	Sheet Balance	on as 30th	Sept'19	:



Crore Rs.	on As 30th	on As 315t	on As 30th		on As 30th	on As 315t	on As 30th
Funds Shareholder's	19 Sept'	Mar' 19	18 Sept'	Crore Rs.	, Sept 19	Mar , 19	, Sept 18
	295.2	287.2	275.6	Non-current assets	239-1	215-9	213-4
Share capital	16.0	16.0	159	& Equipment Property, Plant	179.5	178.4	169.3
Other Equity	279.3	271.2	259.7	W'P capita'	15-7	6-1	1-7
Non-current liabilities Financial Liabilities	39.1	24.6	27.2	Investments Property Assets Intangible	0'0 4.6	0'0 4.6	0'0 4.5
				Investments FA -	16.0	0.7	0.7
Borrowing	17'4	4'2	4'0	Trade FA Receivables -	8.6	11.2	18.6
PFOVISIOHS	0.3	0.6	0.4	Others FA _	122	9.4	15.5
Deferred Tax (Net) Liabilities	21.4	19.7	22.8	Non Other Current Assets	25	5.5	3.1
Other Non-Current Liabilities	0.0	0.0	0.0	Current assets	372.5	349.7	346.0
Current liabilities	277.4	253.8	256.5	Inventories	152-9	1427	139-7
Financial Liabilities				ASSEtS Financial
Borrowing Trade Payable	163.8 52.8	135.6 53.8	117.7 64.0	'"VEStmentS Trade receivables:	3-5 142.2	3-0 146.3	2-5 122.3
Others	6.2	8.2	11.8	& equwalent Cash Cash	5.7	7.1	9.1
__ Other Current Liabilities	52.7	53.8	58.5	Bank above Balance other than Loans	6.5 40.2	7.0 25.4	9.4 38.9
Provisions	0.9	0.7	0.6	Other	0.5	0.5	0.5
Current tax (NEt) liability	1-0	1-7	3-9	Other Current Assets	20.9	17.8	23.4
& Total Equities Liabilities	611.7	565.6	559.3	Assets Total	611.7	565.6	559.3

				________ '
I	Sheet Balance	on as 30th	Sept'19	:		EEIZEP

Crore Rs.	on As 30th 19 Sept'	on As 315t Mar' 19	on As 30th 18 Sept'	Crore Rs.	on As 30th , Sept 19	on As 315t Mar , 19	on As 30th , Sept 18
Funds Shareholder's Share capital	295.2 16.0	287.2 16.0	275.6 159	Non-current assets & Equipment Property, Plant	239-1 179.5	215-9 178.4	213-4 169.3
Other Equity Non-current	279.3 39.1	271.2 24.6	259.7 27.2	W'P capita' Investments Property	15-7 0'0	6-1 0'0	1-7 0'0
liabilities Financial Liabilities				Assets Intangible FA Investments -	4.6 16.0	4.6 0.7	4.5 0.7
Borrowing PFOVISIOHS	17'4 0.3	4'2 0.6	4'0 0.4	Trade FA Receivables - FA Others _	8.6 122	11.2 9.4	18.6 15.5
Deferred Tax (Net) Liabilities Other Non-Current Liabilities	21.4 0.0	19.7 0.0	22.8 0.0	Non Other Current Assets Current assets	25 372.5	5.5 349.7	3.1 346.0
Current liabilities Financial Liabilities	277.4	253.8	256.5	Inventories ASSEtS Financial	152-9	1427	139-7
Borrowing Trade Payable	163.8 52.8	135.6 53.8	117.7 64.0	'"VEStmentS Trade receivables:	3-5 142.2	3-0 146.3	2-5 122.3
Others __ Other Current Liabilities	6.2 52.7	8.2 53.8	11.8 58.5	& equwalent Cash Cash Bank above other than Balance Loans	5.7 6.5 40.2	7.1 7.0 25.4	9.1 9.4 38.9
Provisions	0.9	0.7	0.6	Other	0.5	0.5	0.5
Current tax (NEt) liability & Total Equities Liabilities	1-0 611.7	1-7 565.6	3-9 559.3	Other Current Assets Assets Total	20.9 611.7	17.8 565.6	23.4 559.3

Key Financial Highlights - Annual

Revenue (Rs. Crore)

Net Profit (Rs. Crore)

EBITDA (Rs. Crore) / Margins (%)

Networth as on 31^st March (Rs. Crore)

Company Overview

Leading player offering total and customized electrical solutions

^I Presence in Industrial Switchgears, Wires & Cables and Energy management business —_
^I Largest manufacturer of Cam Operated Rotary Switches Market leader with 25% share

Extensive ln-house manufacturing Product portfolio facilities across verticals with Strong focus on product development and innovation ^I Five manufacturing units located in Tamil Nadu ^I More than 15 products catering to ^I Registered Patent for Rotary Switches, five product patents in process Industrial / Building / Automobile verticals — Wide Distribution network — local and lobal ^g Consistent Dividend Payout Track Record ^I Own distribution network — local and global — for past 25 years export to 50 countries ^I Access to L&T's local network through more than 350 distributors ——

^I Unit ^| (Coimbatore) manufacture ^I contactors, relays, panels, energy savers ^I
^I Starting of long term association with ^I L&T ^I
^I Technical collaboration with Plitron for ^I manufacture of Toroidal Transformers
^I lst Indian company to bring ^I technology to India
Leading player offering total and customized electrical solutions
More than 15 different products
2,000 employees
4 manufacturing units
Foray into tailor made products and branding for large'customers
Specialized panels for OEMs

Established to manufacturer of CAM operated Rotary Switches

1985

^I Unit Ill - manufacture modular switches

2001-06

^I Started manufacturing of Wire & Cable for L&T

Started commercial production of Three Phase Dry Type Transformers
Acquired Salzer Magnet Wires

2010-14 . 2017- 19

Upgrade in Credit Rating for long term borrowing to 'CRISIL AIStable' Acquired Kaycee Industries Ltd.

to manufacturing multiple products across sectors ¹⁸

Guided by 13 members experienced Board 19

Business Overview

Industrial Switch Gear Products

^I Transformers
^I Terminal Blocks
^I RotarySwitches
I Isolators
^I General Purpose relays
^I Wiring Ducts
^I MPCB's
^I Contactors&OLR's
I Control Panels
^I Wire Harness

Building products

^I Modular Switches
^I Wires & Cables
^I MCB's
^I Changeovers

Copper Products

Wires & Cables
Flexible Bus Bars
Enamelled Wires
Bunched Conductors
Tinned Copper Wires

Energy Management products

^I Energy Savers
I Street Light Controllers

ln-house manufacturing and R&D enables superior customization of products

^I Well developed R&D enables continual

product innovation

^I ln-house manufacturing facilities with Corporation states
product development and customization switches to Indian Railways international distributors

Wide Distribution Network

Strong CUStomer REIatiOHShips ^I Wide distribution network international and domestic
^I Strong customer relationships across globe ^I Tie up with L&T— access to over 350 dealers Complete Backward Integration ^I Preferred supplier to GE, Schneider and in India; own network for modular switches only approved supplier of Nuclear Power with 50 stockist in 4 southern & western
process capabilities ensures better ^I Largest supplier of rotary and load break ^I Direct network across 50 countries with 40

Wide Product Suite

total & customized electrical solutions ^I Technical collaboration with Plitron for Toroidal
^I Largest manufacturer and market leader and relays

Advanced Engineering Capabilities

^I Strong engineering capabilities backed by in-house ^I Amongst few players in India, to offer manufacturing and R&D team
^I Wide product basket 15 products transformers lst company to bring technology to developed in-house India, Joint Venture with C3Controls for contactors
in CAM operated rotary switches ^I Resulting in all products been international certified and universal acceptance 23

Rota ry Switch
Contactors & Relays
Panel Assembly
Lighting Energy Savers
Automatic Meter Reading
Three Phase Dry Type Transformers

Toroidal Transformers
Isolators (Dis-connectors)
Terminals
Wiring Ducts
MPCB
Wire Harness
3 PH Transformers

^I Wiring Accessories Wires & Cables

Flexible Bus Bars
Bunched Conductors
Tinned Wires

^I Enamelled Copper Wires
^I Fine Enamelled Copper Wires
^I Polyester Coated Winding wires

__________________________ '

' FullfledgedTypetestinglaboratory ln-house
— Salt spray test & all other basic tests as per — CNC Machining center, EDM Drilling Ul— Standards — Conventional machines

tool room facility for manufacturing and — Loads up to 500Amps servicing of Moulds and press tools
Environmental test chamber for humidity test CNC Wire Cut Machines and Spark erosion machines
Latest digital measuring equipment
Inspected and certified by GE Tool Divisionca

More than 80% components made in-house ²

R&D expenses (Rs crore) - In-house R&D Center

- More than 35 engineers
8.5 7.8 Recognized by Department of Science, Govt of India
^I Patented Rota ry switches
^I Five patents in process
4.3 Manual Single-Phase Starter with no voltage tripping, Energy Saver System for Street Lighting, Integrated ammeter / voltmeter selectro CAM operated rotary switch, Track Feed Battery Change Over System and Fuse Automatic Changeover System
^I 1St of its kind product in India
- Designed and manufactured Load Break Switches, Single Hole

Continuous product innovation

... Across entire product portfolio

$SORHA$

Marketing Tie-up with L&T for Indian Market $\blacksquare$

YOKOGAWA

c³controls^®

Largest supplier of rotary switches to Indian $\blacksquare$ Railways
Branding partner to various large OEM's in India $\blacksquare$

Technical Tie-up with American Company п C3Controls, to manufacture & market contactors & overload relays

NPCTI

गक्लियर पावर कॉर्पोरेशन ऑफ इंडिया लिमिटेड

Technical Tie-up with Trafomodern for Three Phase $\blacksquare$ Transformers
Preferred supplier to: $\blacksquare$
Nuclear Power Corporation

E H I

Schneider Electric
GE Energy

International _ ³ Domestic

- ^I 23% of sales from global distribution ^E across 50 dealers in India
^I 40 international distributors
^I Plans to expand in US, Africa and Middle east
^I Direct network across ⁵⁰ countries ^E D'rECt network ^I Tie up with L&T access to more than ³⁵⁰
^E ⁵ countries ^I ^I Direct network for Modular Switches 50 ^E ^I stockists in 4 southern & western states ^I

Way Ahead

Operational Excellence

^I Consistently executing business strategy and continued focus on improving operating costs by sourcing quality raw materials and efficient manpower

Venture into new project/ product development

^I Look for Technical alliances to develop newer and technically advanced products
^I Acquired Kaycee Industries enabling newer product development, entering new ventures and leveraging its brand and distribution network

Focus on margin improvement

^I Increase sales of high margin products existing and new
^I Increase exports fast growing markets of US, Africa and Middle East

Growth and expansion of existing product verticals

^I Constantly develop new products through inhouse R&D
^I Expand existing product portfolio to newer geographies

For further information, please contact:

Company:

Investor Relations Advisors:

Salzer Electronics Ltd.

Mr. Baskarasubramanian [email protected] Bridge Investor Relations Pvt. Ltd.

Ms. Savli Mangle [email protected]

Mr. Smit Shah [email protected]

AI assistant

Salzer Electronics Ltd. Interim / Quarterly Report 2020

61391_rns_2020-02-06_1f7fdd5a-d727-48bd-926d-5d640466cbb7.pdf

Salzer Electronics Limited