Salzer Electronics Ltd. — Interim / Quarterly Report 2021

Feb 4, 2021

Salze ~~r E~~ l ~~e~~ ctronics Limited Result Update Presentation Q3 & 9M FY21

==> picture [199 x 72] intentionally omitted <==

==> picture [132 x 62] intentionally omitted <==

Disclaimer

==> picture [193 x 73] intentionally omitted <==

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 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.

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.

2

==> picture [132 x 62] intentionally omitted <==

Table of Contents

==> picture [193 x 73] intentionally omitted <==

==> picture [51 x 36] intentionally omitted <==

==> picture [17 x 29] intentionally omitted <==

==> picture [22 x 23] intentionally omitted <==

Financial Highlights

==> picture [195 x 93] intentionally omitted <==

==> picture [62 x 29] intentionally omitted <==

==> picture [21 x 25] intentionally omitted <==

==> picture [27 x 19] intentionally omitted <==

Company Overview Business Overview

==> picture [167 x 149] intentionally omitted <==

==> picture [62 x 31] intentionally omitted <==

==> picture [21 x 25] intentionally omitted <==

==> picture [27 x 19] intentionally omitted <==

==> picture [49 x 35] intentionally omitted <==

==> picture [17 x 29] intentionally omitted <==

==> picture [21 x 23] intentionally omitted <==

Way Ahead

3

==> picture [908 x 326] intentionally omitted <==

==> picture [256 x 91] intentionally omitted <==

Financial Highlights

==> picture [261 x 90] intentionally omitted <==

==> picture [132 x 62] intentionally omitted <==

Joint Managing Director’s Message

==> picture [193 x 73] intentionally omitted <==

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

==> picture [213 x 185] intentionally omitted <==

“I am happy to share that our third quarter performance has been in line with expectations and marks our continued & sustained recovery from the Pandemic-induced slowdown. In the third quarter of this financial year, we registered a 26.5% Y-o-Y growth in revenue at Rs. 170.4 crores, while EBITDA and PAT were Rs. 17.3 crore and Rs. 6.4 crore respectively, having grown 3.4% and 16.4% year-on-year, respectively.

The performance in the nine-month period has been impacted due to lockdown on account of Covid-19 in the first quarter and low demand across the domestic market. However, the third quarter performance was good with growth coming in from wire harness product and export markets of US and Europe. The only Challenge remains is the input material price increase. The lag between the passing off of input costs to customers will have bearing on the margins.

With the markets gradually opening up and business regaining momentum, we expect to maintain our growth trajectory with our robust product offerings and strong brand position in the market. Overall, we remain committed to our set agenda of delivering sustainable growth and expect to match our last year’s business performance, though our internal target is to demonstrate growth this year and hope to achieve the same. I thank all our stakeholders for their continued support and faith in our Company.”

5

==> picture [132 x 62] intentionally omitted <==

Key Financial Highlights – Quarterly

==> picture [193 x 73] intentionally omitted <==

Revenue, EBITDA, PAT (Rs. Crore)

Revenue EBITDA PAT

==> picture [790 x 312] intentionally omitted <==

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

180 170.4 30.0
162.1
155.0
160 149.8
143.5
25.0
137.8
134.7 134.7
140 132.3
126.8 126.5
18.8
120 110.7 20.0
17.5 17.3
100.7 16.4 16.7 16.1 16.9 16.7 16.7 95.7
100
14.3
14.0
13.5 15.0
12.9
80
9.6
9.1
60 8.4 10.0
6.6 6.4
40 5.8 5.3 4.9 4.5 5.6 5.4 5.8 5.9 5.5
5.0
20
0.7
0 0.0
Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21
----- End of picture text -----

6

==> picture [132 x 62] intentionally omitted <==

Q3 FY21 Financial Highlights

==> picture [193 x 73] intentionally omitted <==

Q3 FY21 Financial Highlights	Q3 FY21 Financial Highlights	Q3 FY21 Financial Highlights	Q3 FY21 Financial Highlights	Q3 FY21 Financial Highlights	Q3 FY21 Financial Highlights	Q3 FY21 Financial Highlights
Rs. in Crore Standalone Consolidated Q3 FY21 Q3 FY20 Y-o-Y % Q2 FY21 Q3 FY21 Net Revenue 170.44 134.71 26.52% 149.80 176.86 Raw Materials 133.97 96.34 111.28 137.86 Employee Cost 6.47 7.21 6.09 7.59 Other Expenses 12.72 14.45 13.67 13.87 Total Expenditure 153.16 118.01 131.04 159.32 EBITDA 17.28 16.71 3.43% 18.76 17.54 EBIDTA Margin(%) 10.14% 12.40% (226 bps) 12.52% 9.92% Other Income 0.24 0.10 0.04 0.32 Depreciation 3.75 3.69 3.82 3.85 Interest / Finance Cost 5.42 5.00 5.78 5.44 Exceptional Item(Gain)/ Loss 0.00 0.00 0.00 0.00 Profit Before Tax 8.35 8.12 2.88% 9.20 8.57 Tax 1.94 2.61 2.61 2.05 Profit After Tax 6.41 5.51 16.38% 6.59 6.52 Profit After Tax Margin(%) 3.76% 4.09% (33 bps) 4.40% 3.69% Basic EPS(Rs.) 4.01 3.44 16.57% 4.12 4.08
	Rs. in Crore	Standalone				Consolidated
		Q3 FY21	Q3 FY20	Y-o-Y %	Q2 FY21	Q3 FY21
	Net Revenue	170.44	134.71	26.52%	149.80	176.86
	Raw Materials	133.97	96.34		111.28	137.86
	Employee Cost	6.47	7.21		6.09	7.59
	Other Expenses	12.72	14.45		13.67	13.87
	Total Expenditure	153.16	118.01		131.04	159.32
	EBITDA	17.28	16.71	3.43%	18.76	17.54
	EBIDTA Margin(%)	10.14%	12.40%	(226 bps)	12.52%	9.92%
	Other Income	0.24	0.10		0.04	0.32
	Depreciation	3.75	3.69		3.82	3.85
	Interest / Finance Cost	5.42	5.00		5.78	5.44
	Exceptional Item(Gain)/ Loss	0.00	0.00		0.00	0.00
	Profit Before Tax	8.35	8.12	2.88%	9.20	8.57
	Tax	1.94	2.61		2.61	2.05
	Profit After Tax	6.41	5.51	16.38%	6.59	6.52
	Profit After Tax Margin(%)	3.76%	4.09%	(33 bps)	4.40%	3.69%
	Basic EPS(Rs.)	4.01	3.44	16.57%	4.12	4.08

• Increase in Revenue mainly driven by higher sales in our wires and cables business, triggered by demand from Agri-segment; as well as rise in sales of our wire harness products under the industrial switch gear business, owing to addition of new customers

▪ Contribution from Exports was over 18% , on account of increase in sales to the US and Asian markets. Overall export revenue grew 11.5% YoY in Q3

7

==> picture [132 x 62] intentionally omitted <==

Q3 FY21 Revenue Breakup – Business Verticals

==> picture [193 x 73] intentionally omitted <==

==> picture [780 x 318] intentionally omitted <==

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

Q3 FY20 Q3 FY21
Industrial
Switchgear, Industrial
50.0% Switchgear,
38.8%
Energy
Management , Wire & Cable,
Building Segment,
2.2% Wire & Cable, 5.3% 55.9%
41.1%
Building Segment,
6.8%
----- End of picture text -----

▪ Industrial Switchgear – 38.8% of net revenues

▪ Wires & Cables – 55.9% of net revenues

▪ Buildings Products – 5.3% of net revenues

▪ Energy Management – Revenue from AMC of previous orders; No tenders were issued by the government during this period

8

==> picture [132 x 62] intentionally omitted <==

Q3 FY21 Revenue Breakup – Geographical

==> picture [193 x 73] intentionally omitted <==

==> picture [321 x 56] intentionally omitted <==

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

Q3 FY20
----- End of picture text -----

==> picture [280 x 274] intentionally omitted <==

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

Middle East,
Asia (Exclu. India),
3.7%
North/South 7.7%
America, 3.5%
Europe,
5.9%
India,
79.3%
----- End of picture text -----

==> picture [11 x 363] intentionally omitted <==

==> picture [321 x 56] intentionally omitted <==

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

Q3 FY21
----- End of picture text -----

==> picture [278 x 269] intentionally omitted <==

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

Asia (Exclu. India),
Middle East, 0.5%
8.1%
North/South
America, 4.1%
Europe,
5.4%
India,
81.9%
----- End of picture text -----

9

==> picture [132 x 62] intentionally omitted <==

9M FY21 Financial Highlights

==> picture [193 x 73] intentionally omitted <==

Rs. in Crore Net Revenue Raw Material Expenses Employee Expenses Other Expenses Total Expenditure EBITDA EBITDA Margin(%) Other Income Depreciation Interest/Finance Cost Exceptional Item(Gain) /Loss PBT Tax PAT PAT Margin(%) Basic EPS(Rs.)	9M FY21	9M FY20	Y-o-Y %	9M FY21 (Consl)
	415.93	434.65	(4.31%)	430.34
	319.56	324.61		327.66
	16.84	19.74		19.57
	33.90	39.41		36.80
	370.30	383.75		384.02
	45.63	50.89	(10.34%)	46.32
	10.97%	11.71%	(74 bps)	10.76%
	0.55	1.03		0.78
	11.51	10.76		11.81
	16.02	15.73		16.05
	0.00	0.00		0.04
	18.65	25.43	(26.66%)	19.19
	4.97	8.18		5.16
	13.69	17.25	(20.65%)	14.03
	3.29%	3.97%	(68 bps)	3.26%
	8.56	10.79	(20.67%)	8.78
▪Decline in Revenue mainly on account of nationwide lockdown during first quarter of the financial year ▪Contribution to revenue from exports was20% in 9M FY21, with a13.8% YoY growth in export revenue, mainly on account of higher exports to American markets

▪ Decline in Revenue mainly on account of nationwide lockdown during first quarter of the financial year

▪ Contribution to revenue from exports was 20% in 9M FY21 , with a 13.8% YoY growth in export revenue , mainly on account of higher exports to American markets

10

Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

==> picture [132 x 62] intentionally omitted <==

9M FY21 Revenue Breakup – Business Division

==> picture [193 x 73] intentionally omitted <==

==> picture [780 x 319] intentionally omitted <==

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

9M FY20 9M FY21
Industrial Industrial
Switchgear, Switchgear,
44.3% 41.3%
Energy
Energy
Management ,
Management , Wire & Cable, 0.7%
2.0% 47.3% Wire & Cable,
Building Segment, 53.0%
Building Segment, 5.0%
6.4%
----- End of picture text -----

▪ Industrial Switchgear – 41.3% of total revenues

▪ Wires & Cables – 53.0% of total revenues

▪ Buildings Products – 5.0% of total revenues

▪ Energy Management – 0.7% of total revenue

11

==> picture [132 x 62] intentionally omitted <==

9M FY21 Revenue Breakup – Geographical

==> picture [193 x 73] intentionally omitted <==

==> picture [320 x 56] intentionally omitted <==

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

9M FY20
----- End of picture text -----

==> picture [294 x 283] intentionally omitted <==

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

Middle East,
Asia (Exclu. India), 3.4%
5.4%
North/South
America, 2.9%
Europe,
5.2%
India, 83.1%
----- End of picture text -----

==> picture [11 x 363] intentionally omitted <==

==> picture [321 x 56] intentionally omitted <==

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

9M FY21
----- End of picture text -----

==> picture [300 x 282] intentionally omitted <==

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

Asia (Exclu. Middle East,
India), 8.8% 1.2%
North/Sout
h America,
4.5%
Europe,
5.5%
India, 80.0%
----- End of picture text -----

12

==> picture [132 x 62] intentionally omitted <==

Balance Sheet as on 30[th] Sept’ 20

==> picture [193 x 73] intentionally omitted <==

Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20	Balance Sheet as on 30th Sept’ 20
Rs. Crore	As on 30th Sept’ 20	As on 30th Sept’19	As on 30th Sept’ 20*		Rs. Crore	As on 30th Sept’ 20	As on 30th Sept’ 19	As on 30th Sept’ 20*
Shareholder’s Funds	316.8	295.2	320.4		Non-current assets	254.8	239.1	247.4
Share capital	16.0	16.0	16.0		Property,Plant & Equipment	200.9	179.5	203.6
Other Equity	300.8	279.3	300.8		Capital WIP	4.3	15.7	4.3
Non ControllingInterest	0.0	0.0	3.6		Investments Property	0.0	0.0	0.0
Non-current liabilities	37.7	39.1	38.1		Intangible Assets	4.3	4.6	10.4
					FA - Investments	17.4	16.0	0.9
Financial Liabilities
					FA - Trade Receivables	5.2	8.6	5.2
Borrowing	18.2	17.4	18.2
					FA - Others	19.8	12.2	19.8
Provisions	0.7	0.3	0.9
					Other Non Current Assets	2.8	2.5	3.2
Deferred Tax Liabilities(Net)	18.8	21.4	18.7
					Current assets	355.5	372.5	371.8
Other Non-Current Liabilities	0.0	0.0	0.0
					Inventories	153.6	152.9	156.8
Current liabilities	255.7	277.4	260.7
					Financial Assets
Financial Liabilities
					Investments	3.0	3.5	3.0
Borrowing	160.9	163.8	161.5
					Trade receivables	146.0	142.2	154.7
Trade Payable	43.5	52.8	46.9
					Cash & Cash equivalent	6.0	5.7	6.4
Others	7.3	6.2	7.3
					Bank Balance other than above	6.2	6.5	9.9
Other Current Liabilities	41.1	52.7	41.6
					Loans	26.0	40.2	26.0
Provisions	1.1	0.9	1.7
					Other	0.4	0.5	0.4
Current tax liability (Net)	1.8	1.0	1.7
					Other Current Assets	14.3	20.9	14.5
Total Equities & Liabilities	610.3	611.7	619.2
					Total Assets	610.3	611.7	619.2

*Consolidated – on account of acquisition of 74.9% shares of Kaycee Industries

13

==> picture [132 x 62] intentionally omitted <==

Key Financial Highlights – Annual

Revenue (Rs. Crore)

==> picture [324 x 152] intentionally omitted <==

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

559.8 566.9
442.8
385.0
FY17 FY18 FY19 FY20
----- End of picture text -----

Net Profit (Rs. Crore)

==> picture [362 x 156] intentionally omitted <==

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

30 6%
4.5% 4.7%
4.5% 4.3%
25 5%
20 4%
15 3%
26.4
24.0
10 20.0 2%
17.3
5 1%
0 0%
FY17 FY18 FY19 FY20
----- End of picture text -----

==> picture [11 x 434] intentionally omitted <==

==> picture [193 x 73] intentionally omitted <==

EBITDA (Rs. Crore) / Margins (%)

==> picture [362 x 153] intentionally omitted <==

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

70 13%
11.4% 11.5%
12.0%
60
11.5% 12%
50
11%
40
30 63.6 65.2
53.3 10%
20 44.1
9%
10
0 8%
FY17 FY18 FY19 FY20
----- End of picture text -----

Networth as on 31[st] March (Rs. Crore)

==> picture [328 x 135] intentionally omitted <==

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

309.4
287.0
270.6
222.0
----- End of picture text -----

2017

2018

2019

2020

14

==> picture [908 x 324] intentionally omitted <==

==> picture [256 x 90] intentionally omitted <==

Salzer Electronics Limited Company Overview Investor Presentation FY17

==> picture [261 x 90] intentionally omitted <==

==> picture [132 x 62] intentionally omitted <==

Company Overview

==> picture [193 x 73] intentionally omitted <==

Leading player offering total and customized electrical solutions

▪ Presence in Industrial Switchgears, Wires & Cables and Energy management business

▪ Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share

==> picture [257 x 249] intentionally omitted <==

Extensive Product portfolio across verticals with In-house manufacturing facilities

• Five manufacturing units located in Tamil Nadu

• More than 15 products catering to Industrial / Building / Automobile verticals

Wide Distribution network – local and global

▪ Own distribution network – local and global – export to 50 countries

• Access to L&T’s local network through more than 350 distributors

Strong focus on product development and innovation

• Registered Patent for Rotary Switches, five product patents in process

16

==> picture [132 x 62] intentionally omitted <==

From a Single Product Company…

• Unit I (Coimbatore) – manufacture contactors, relays, panels, energy savers

• Starting of long term association with L&T

• Technical collaboration with Plitron for manufacture of Toroidal Transformers

• 1st Indian company to bring technology to India

• Leading player offering total and customized electrical solutions

• More than 15 different products

• 2,000 employees

• 5 manufacturing units

• Foray into tailor made products and branding for large customers

• Specialized panels for OEMs

==> picture [193 x 73] intentionally omitted <==

• 1985 1991-95 2001-06 2010-14 2017-20 ▪ Unit III - manufacture ▪ Started commercial production of modular switches Three Phase Dry Type Transformers

• ▪ ▪ Started manufacturing Acquired Salzer Magnet Wires of Wire & Cable for L&T ▪ Upgrade in Credit Rating for long term borrowing to ‘CRISIL A/Stable’

• ▪ Acquired Kaycee Industries Ltd.

▪ Established to

manufacturer of CAM operated Rotary Switches

… to manufacturing multiple products across sectors

17

==> picture [132 x 62] intentionally omitted <==

Professional Management

==> picture [193 x 73] intentionally omitted <==

R.Doraiswamy Managing Director

▪ Qualified Electrical Engineer and Technocrat Entrepreneur with over 2 decades of experience ▪ Vast Experience in Foreign Collaboration & wide global contacts

D.Rajeshkumar Joint Managing Director

▪ Electrical Engineer, India; Post Graduate in Business Management, US

▪ JMD and CEO of Company - responsible for driving the vision of Company

S.Baskarasubramanian Director-Corporate Affairs & CS

▪ Qualified Company Secretary & member of FCS India

▪ Wide experience in company law/ corporate affairs

P.Sivakumar AVP – Marketing Corporate

▪ Bachelors in Engineering with 22 years of experience

▪ Responsible for Sales & Marketing division

M Laksminarayana VP - Operations

▪ B.E (Electrical) with 17 years of experience

▪ Responsible for Production, Planning, Inventory Management, Maintenance & General Administration

D.Govindaraj Sr. Manager-Corp. Accounts & Projects

▪ Masters in Commerce, DLL and DTL with 26 years of experience

▪ Responsible for project finance and corporate accounts

R Karunakaran GM - PR & Central Excise

▪ BSc, Diploma in Marketing Management with 24 years of experience

▪ Responsible for Central Excise and Public Relations of Company

Guided by 13 member experienced Board

18

==> picture [454 x 167] intentionally omitted <==

==> picture [454 x 166] intentionally omitted <==

==> picture [455 x 168] intentionally omitted <==

==> picture [454 x 168] intentionally omitted <==

==> picture [256 x 91] intentionally omitted <==

Business Overview

==> picture [261 x 90] intentionally omitted <==

==> picture [132 x 62] intentionally omitted <==

Business Overview

==> picture [339 x 352] intentionally omitted <==

Industrial Switch Gear Products

• Transformers

• Terminal Blocks

• Rotary Switches

• Isolators

• General Purpose relays

• Wiring Ducts

• MPCB’s

• Contactors & OLR’s

• Control Panels

• Wire Harness

Building products

• Modular Switches

• Wires & Cables

• MCB’s

• Changeovers

==> picture [193 x 73] intentionally omitted <==

Copper Products

• Wires & Cables

• Flexible Bus Bars

• Enamelled Wires

• Bunched Conductors

• Tinned Copper Wires

Energy Management products

• Energy Savers

• Street Light Controllers

20

==> picture [132 x 62] intentionally omitted <==

Wide Product Suite- Customized for OEM’s

==> picture [193 x 73] intentionally omitted <==

==> picture [142 x 120] intentionally omitted <==

==> picture [131 x 207] intentionally omitted <==

==> picture [135 x 122] intentionally omitted <==

==> picture [136 x 120] intentionally omitted <==

==> picture [132 x 125] intentionally omitted <==

==> picture [239 x 119] intentionally omitted <==

==> picture [171 x 17] intentionally omitted <==

==> picture [170 x 17] intentionally omitted <==

==> picture [170 x 16] intentionally omitted <==

==> picture [170 x 16] intentionally omitted <==

CT’s

Terminal Socket

Coils / Inductors

Panels

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

21

==> picture [132 x 62] intentionally omitted <==

Key Strengths

==> picture [193 x 73] intentionally omitted <==

Wide Distribution Network

Complete Backward Integration

• In-house manufacturing facilities with process capabilities ensures better product development and customization

Strong Customer Relationships

• Strong customer relationships across globe

• Preferred supplier to GE, Schneider and only approved supplier of Nuclear Power Corporation

• Largest supplier of rotary and load break switches to Indian Railways

  • Wide distribution network – international and domestic

  • Tie up with L&T – access to over 350 dealers in India; own network for modular switches with 50 stockist in 4 southern & western states

  • Direct network across 50 countries with 40 international distributors

• Well developed R&D enables continual

• product innovation

==> picture [112 x 33] intentionally omitted <==

==> picture [112 x 33] intentionally omitted <==

==> picture [112 x 32] intentionally omitted <==

==> picture [112 x 32] intentionally omitted <==

==> picture [112 x 33] intentionally omitted <==

==> picture [126 x 28] intentionally omitted <==

==> picture [130 x 28] intentionally omitted <==

==> picture [130 x 28] intentionally omitted <==

==> picture [130 x 28] intentionally omitted <==

==> picture [130 x 28] intentionally omitted <==

==> picture [124 x 28] intentionally omitted <==

==> picture [115 x 33] intentionally omitted <==

==> picture [116 x 33] intentionally omitted <==

==> picture [115 x 34] intentionally omitted <==

==> picture [115 x 34] intentionally omitted <==

==> picture [115 x 34] intentionally omitted <==

Advanced Engineering Capabilities

Wide Product Suite

• Amongst few players in India, to offer total & customized electrical solutions

• Wide product basket – 15 products developed in-house

• Largest manufacturer and market leader in CAM operated rotary switches

• Strong engineering capabilities backed by in-house manufacturing and R&D team

• Technical collaboration with Plitron for Toroidal transformers – 1st company to bring technology to India, Joint Venture with C3Controls for contactors and relays

• Resulting in all products been international certified and universal acceptance

22

==> picture [132 x 62] intentionally omitted <==

Five Manufacturing facilities...

UNIT 2

UNIT 3

UNIT I

==> picture [165 x 120] intentionally omitted <==

==> picture [165 x 120] intentionally omitted <==

==> picture [165 x 120] intentionally omitted <==

• Toroidal Transformers

• Rotary Switch

  • Wiring Accessories

• Isolators (Dis-connectors)

• Contactors & Relays

• Panel Assembly

• Terminals

• Lighting Energy

• Wiring Ducts

• Savers

• MPCB

• Automatic Meter Reading

• Wire Harness

• 3 PH Transformers

==> picture [193 x 73] intentionally omitted <==

UNIT 4

UNIT 5

==> picture [165 x 120] intentionally omitted <==

==> picture [165 x 121] intentionally omitted <==

• Wires & Cables ▪ Enamelled Copper

• ▪ Flexible Bus Bars Wires

• Bunched Conductors ▪ Fine Enamelled

• Tinned Wires

  • Copper Wires

• Polyester Coated Winding wires

• Three Phase Dry Type

Transformers

23

==> picture [132 x 62] intentionally omitted <==

...With In-house process capabilities...

==> picture [193 x 73] intentionally omitted <==

==> picture [313 x 192] intentionally omitted <==

==> picture [315 x 198] intentionally omitted <==

▪ Full fledged Type testing laboratory

• Loads up to 500Amps

• Environmental test chamber for humidity test

• Salt spray test & all other basic tests as per UL Standards

• In-house tool room facility for manufacturing and servicing of Moulds and press tools

• CNC Wire Cut Machines and Spark erosion machines

• CNC Machining center, EDM Drilling

• Conventional machines

• Latest digital measuring equipment

• Inspected and certified by GE Tool Divisionca

More than 80% components made in-house

24

==> picture [132 x 62] intentionally omitted <==

...And a strong R&D team

==> picture [193 x 73] intentionally omitted <==

R&D expenses (Rs crore)

▪ In-house R&D Center

==> picture [295 x 310] intentionally omitted <==

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

12.0
8.5
7.8
4.3
2.5
FY16
FY17
FY18
FY19
FY20
----- End of picture text -----

• More than 35 engineers

• Recognized by Department of Science, Govt of India

• Patented Rotary switches

• Five patents in process

• 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

• 1[st] of its kind product in India

• Designed and manufactured Load Break Switches, Single Hole Mounting Switches, Halogen Free Cable Ducts, Flat Wire Ducts, Flexible Bus Bars etc

Continuous product innovation

25

==> picture [132 x 62] intentionally omitted <==

Internationally certified

==> picture [99 x 66] intentionally omitted <==

==> picture [139 x 48] intentionally omitted <==

ISO 14001

ISO 9001

==> picture [137 x 66] intentionally omitted <==

==> picture [100 x 56] intentionally omitted <==

CE Certification

UL Certification

==> picture [114 x 66] intentionally omitted <==

==> picture [76 x 85] intentionally omitted <==

==> picture [130 x 72] intentionally omitted <==

RoHS

Intertek Semko approval

CSA Certification

==> picture [193 x 73] intentionally omitted <==

==> picture [175 x 55] intentionally omitted <==

ISO 18001

==> picture [105 x 92] intentionally omitted <==

CB certification

==> picture [139 x 108] intentionally omitted <==

... Across entire product portfolio

26

==> picture [132 x 62] intentionally omitted <==

Blue Chip Customers

==> picture [193 x 73] intentionally omitted <==

==> picture [812 x 243] intentionally omitted <==

• Marketing Tie-up with L&T for Indian Market

• Largest supplier of rotary switches to Indian Railways

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

• Technical Tie-up with Trafomodern for Three Phase Transformers

• Preferred supplier to:

• Branding partner to various large OEM’s in India

• Nuclear Power Corporation

• Schneider Electric

• GE Energy

27

==> picture [132 x 62] intentionally omitted <==

Wide Distribution Network

==> picture [193 x 73] intentionally omitted <==

==> picture [746 x 332] intentionally omitted <==

International

• Direct network across 50 countries

• 17% of sales from global distribution

• 40 international distributors

• Plans to expand in US, Africa and Middle east

Direct network

across 50

countries

Domestic

• Tie up with L&T – access to more than 350 dealers in India

• Direct network for Modular Switches – 50 stockists in 4 southern & western states

28

==> picture [908 x 327] intentionally omitted <==

==> picture [256 x 91] intentionally omitted <==

Way Ahead

==> picture [261 x 90] intentionally omitted <==

==> picture [132 x 62] intentionally omitted <==

Way Ahead

==> picture [193 x 73] intentionally omitted <==

Operational Excellence

• 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

• Look for Technical alliances to develop newer and technically advanced products

• Acquired Kaycee Industries enabling newer product development, entering new ventures and leveraging its brand and distribution network

==> picture [157 x 91] intentionally omitted <==

Focus on margin improvement

• Increase sales of high margin products – existing and new

• Increase exports – fast growing markets of US, Africa and Middle East

==> picture [158 x 91] intentionally omitted <==

Growth and expansion of existing product verticals

• Constantly develop new products through inhouse R&D

• Expand existing product portfolio to newer

• geographies

30

==> picture [132 x 62] intentionally omitted <==

Thank You

==> picture [193 x 73] intentionally omitted <==

==> picture [86 x 30] intentionally omitted <==

SALZERELEC 517059 SZE IN SALZ.BO For further information, please contact: Company : Investor Relations Advisors : Salzer Electronics Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Baskarasubramanian Ms. Savli Mangle baskarasubramanian@salzergroup.com savli@bridge-ir.com Mr. Rahul Trivedi rahul@bridge-ir.com www.salzergroup.net www.bridge-ir.com

31