Salzer Electronics Ltd. - Investor Presentation 2024

==> picture [185 x 32] intentionally omitted <==

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Disclaimer

==> picture [185 x 32] 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.

==> picture [960 x 7] intentionally omitted <==

TABLE OF CONTENTS Table of Contents

==> picture [39 x 39] intentionally omitted <==

FINANCIAL HIGHLIGHTS COMPANY OVERVIEW BUSINESS OVERVIEW WAY AHEAD

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

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

==> picture [44 x 44] intentionally omitted <==

==> picture [192 x 152] intentionally omitted <==

==> picture [960 x 7] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

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

FINANCIAL HIGHLIGHTS

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

Joint Managing Director’s Message

During the First quarter of the financial year, we registered a revenue of Rs. 356.90 crores with EBITDA (excluding other income) and PAT of Rs. 33.45 crore and Rs. 14.76 crore, respectively on a “ consolidated basis. This growth was mainly driven by industrial switchgear and wires & Cables business due to better market conditions. Our revenues from exports were largely from North and South America, and Middle East countries.

==> picture [238 x 231] intentionally omitted <==

We expect to continue with a similar growth trajectory with our strong product offerings and brand position in the market. Based on domestic and export outlook, we are cautiously optimistic about the overall business performance. Our strategic focus is on sustaining a well-balanced business mix between industrial switchgear and wires & cables products to effectively improve the overall gross margin.

We are planning to establish a wholly owned subsidiary in Saudi Arabia. Currently we exporting to major OEMs in Saud Arabia. The Saudi government's local content rule has increased demand for locally made products. The market for key products, including cable ducts, terminal connectors, and rotary cam switches, shows significant growth potential. Setting up a facility in Saudi Arabia will meet local demand and provide duty-free access to other GCC countries. Additionally, the company plans to introduce wires and cables in the second year to further expand its market presence.

Commenting on the Company’s performance,

Mr. Rajesh Doraiswamy

Joint Managing Director, Salzer Electronics Ltd said:

I thank the entire team at Salzer Electronics for their untiring efforts and all our stakeholders for their continued support and faith in our Company. ”

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Key Consolidated Financial Highlights – Quarterly

==> picture [185 x 32] intentionally omitted <==

Revenue, EBITDA (excluding other income), PAT (Rs. Crore)

==> picture [838 x 350] intentionally omitted <==

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

Revenue EBITDA PAT
400 40,0
356,9
350 35,0
326,6
31,0
302,7
33,1 33,5
288,7
300 280,7 30,0
270,4
245,6 245,6
250 237,9 26,8 25,0
26,1
25,6
24,9 24,7
200 20,0
20,7
14,8
150 13,5 13,3 15,0
9,6 9,6 10,5 9,9 10,2 10,1
100 10,0
50 5,0
0 0,0
Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
----- End of picture text -----

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Q1 FY25 Revenue Breakup – Business Verticals

==> picture [185 x 32] intentionally omitted <==

==> picture [293 x 317] intentionally omitted <==

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

Q1 FY24
[VALUE]
[CATEGORY
NAME]
[VALUE] [VALUE]
[CATEGORY [CATEGORY
NAME] NAME]
----- End of picture text -----

==> picture [323 x 313] intentionally omitted <==

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

Q1 FY25
[VALUE]
[CATEGORY
NAME]
[VALUE]
[VALUE]
[CATEGORY
[CATEGORY
NAME]
NAME]
----- End of picture text -----

Industrial Switchgear – 51.8% of net revenues
Wires & Cables – 43.4% of net revenues
Building Electrical Products – 4.8% of net revenues

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Q1 FY25 Revenue Breakup – Geographical

==> picture [185 x 32] intentionally omitted <==

==> picture [801 x 330] intentionally omitted <==

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

Q1 FY24 Q1 FY25
[VALUE] [VALUE]
[VALUE]
[CATEGORY [CATEGORY [VALUE]
[CATEGORY
NAME] NAME] [CATEGORY
NAME]
[VALUE]
NAME]
[CATEGORY
NAME] [VALUE]
[CATEGORY
[VALUE] NAME]
[CATEGORY
NAME] [VALUE]
[CATEGORY
NAME]
[VALUE]
[VALUE]
[CATEGORY
[CATEGORY
NAME]
NAME]
----- End of picture text -----

 Contribution from Exports at 26.34%

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Q1 FY25 Consolidated Financial Highlights

==> picture [185 x 32] intentionally omitted <==

Rs. in Crore	Q1 FY25	Q1 FY24	Y-o-Y %	Q4 FY24
Net Revenue	356.90	288.67	23.64%	326.57
Raw Materials	277.96	225.48		243.06
Employee Cost	12.74	10.41		13.27
Other Expenses	32.76	26.70		37.15
Total Expenditure	323.45	262.59		293.49
EBITDA(Excluding other Income)	33.45	26.08	28.26%	33.08
EBIDTA Margin(%)	9.37%	9.03%	34 bps	10.13%
Other Income	1.27	0.74		0.25
Depreciation	5.61	4.66		5.42
Interest / Finance Cost	9.73	8.00		9.06
Exceptional Item (Gain) / Loss	0.00	0.00		0.00
Profit Before Tax	19.38	14.16		18.86
Tax	4.63	3.99		5.54
Profit After Tax	14.76	10.17	45.14%	13.32
Profit After Tax Margin(%)	4.13%	3.52%	61 bps	4.08%
Basic EPS(Rs.)	7.57	6.10	24.10%	7.42

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

FY24 Consolidated Financial Highlights

==> picture [185 x 32] intentionally omitted <==

Rs. in Crore	FY24	FY23	Y-o-Y %
Net Revenue	1,166.31	1,037.17	12.45%
Raw Material Expenses	881.00	807.16	9.15%
Employee Expenses	46.64	39.37
Other Expenses	121.70	94.75
Total Expenditure	1,049.33	941.27
EBITDA(Excluding other Income)	116.98	95.90	21.98%
EBITDA Margin(%)	10.03%	9.25%	78 bps
Other Income	1.95	1.70
Depreciation	20.11	16.60
Interest/Finance Cost	34.09	26.12
Exceptional Item(Gain) /Loss	0.00	0.02
PBT	64.73	54.90
Tax	17.66	15.28
PAT	47.07	39.62	18.80%
PAT Margin(%)	4.04%	3.82%	22 bps
Basic EPS(Rs.)	27.38	24.21	13.09%

 Increase in Revenue – driven by business of Industrial switchgear and wire & cable businesses

 Contribution from exports was 26.93% in FY24

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

FY24 Revenue Breakup – Business Verticals

==> picture [185 x 32] intentionally omitted <==

==> picture [761 x 330] intentionally omitted <==

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

FY23 FY24
[VALUE]
[CATEGORY [VALUE]
NAME] [CATEGORY
NAME]
[VALUE]
[VALUE]
[VALUE]
[VALUE]
[CATEGORY
[CATEGORY
[CATEGORY
[CATEGORY
NAME]
NAME]
NAME]
NAME]
----- End of picture text -----

Industrial Switchgear – 54.66% of net revenues
Wires & Cables – 39.48% of net revenues
Building Electrical Products – 5.86% of net revenues

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

FY24 Revenue Breakup – Geographical

==> picture [185 x 32] intentionally omitted <==

==> picture [815 x 331] intentionally omitted <==

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

FY23 FY24
[VALUE] [VALUE] [VALUE]
[VALUE]
[CATEGORY [CATEGORY [CATEGORY
[CATEGORY
NAME] NAME] NAME]
[VALUE] NAME]
[VALUE]
[CATEGORY
[CATEGORY
NAME]
NAME]
[VALUE]
[CATEGORY [VALUE]
NAME] [CATEGORY
NAME]
[VALUE]
[VALUE]
[CATEGORY
[CATEGORY
NAME]
NAME]
----- End of picture text -----

 Contribution from exports was 26.93% in FY24

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

Key Consolidated Financial Highlights – Annual

Revenue (Rs. Crore) EBITDA (Rs. Crore) / Margins (%)

==> picture [377 x 133] intentionally omitted <==

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

1166,3
1037,2
783,6
605,6
566,9
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

==> picture [361 x 154] intentionally omitted <==

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

11,5% 10,2%
9,3%
10,0%
8,1%
117,0
95,9
65,2 61,8 63,8
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

Net Profit (Rs. Crore)

==> picture [358 x 158] intentionally omitted <==

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

4,7% 3,8%
4,0%
3,4%
2,9%
47,1
39,6
20,7 22,5
26,4
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

==> picture [385 x 192] intentionally omitted <==

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

Earning per Share(Rs.)
27,38
24,21
16,5
14,07
12,9
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

==> picture [960 x 7] intentionally omitted <==

==> picture [929 x 496] intentionally omitted <==

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

Key Consolidated Balance Sheet Highlights – Annual
Return on Capital Employed ( %) Return on Equity (%)
12,7%
11,6%
11,0%
9,4% 9,7% 9,9%
8,6%
6,2% 6,4% 6,4%
FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
Debt to Equity(X) Networth as on 31st March (Rs. Crore)
473,46
0,71
0,68 407,71
0,65
351,47
331,3
0,60 309,4
0,56
FY20 FY21 FY22 FY23 FY24
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

Return on Capital Employed – EBIT/Total Capital Employed (Total Shareholders equity+LT Debt+ST Debt+Current Maturity of LT Debt-Non Current Investment), RoE – Net Profit/Networth , Debt to Equity* = Total Debt/ Networth

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Working Capital & Borrowings

==> picture [185 x 32] intentionally omitted <==

Working Capital (Cr.) – Bar Chart Working Capital (Days) – Line Chart

Borrowing (Cr.)

==> picture [343 x 237] intentionally omitted <==

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

179
165
157
154
147
233,2
181,6
122,3
106,2
91,9
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

==> picture [381 x 264] intentionally omitted <==

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

294,88
264,77
235,4
183,28
155,91
17,78 16,27 12,41 7,78 12,99
FY20 FY21 FY22 FY23 FY24
Long Term Borrowing Short Term Borrowing
----- End of picture text -----

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

Consolidated Balance Sheet Highlights

Consolidated Balance Sheet Hig Rs. Crore As on 31st Mar’ 24 As on 31st Mar’ 23 Shareholder’s Funds 480.41 413.24 Share capital 17.38 16.18 Other Equity 456.08 391.52 Non ControllingInterest 6.94 5.54 Non-current liabilities 42.49 34.78 Financial Liabilities Borrowing 12.99 7.78 Lease Labilities 3.63 4.13 Provisions 1.01 4.43 Deferred Tax Liabilities(Net) 24.60 22.32 Other Non-Current Liabilities 0.26 0.25 Current liabilities 470.30 447.21 Financial Liabilities Borrowing 294.88 264.77 Trade Payable 103.72 112.01 Others 1.80 5.33 Other Current Liabilities 64.65 62.74 Provisions 2.79 2.30 Current tax liability (Net) 2.45 0.05 Total Equities & Liabilities 993.20 895.27*	Consolidated Balance Sheet Hig Rs. Crore As on 31st Mar’ 24 As on 31st Mar’ 23 Shareholder’s Funds 480.41 413.24 Share capital 17.38 16.18 Other Equity 456.08 391.52 Non ControllingInterest 6.94 5.54 Non-current liabilities 42.49 34.78 Financial Liabilities Borrowing 12.99 7.78 Lease Labilities 3.63 4.13 Provisions 1.01 4.43 Deferred Tax Liabilities(Net) 24.60 22.32 Other Non-Current Liabilities 0.26 0.25 Current liabilities 470.30 447.21 Financial Liabilities Borrowing 294.88 264.77 Trade Payable 103.72 112.01 Others 1.80 5.33 Other Current Liabilities 64.65 62.74 Provisions 2.79 2.30 Current tax liability (Net) 2.45 0.05 Total Equities & Liabilities 993.20 895.27*	Consolidated Balance Sheet Hig Rs. Crore As on 31st Mar’ 24 As on 31st Mar’ 23 Shareholder’s Funds 480.41 413.24 Share capital 17.38 16.18 Other Equity 456.08 391.52 Non ControllingInterest 6.94 5.54 Non-current liabilities 42.49 34.78 Financial Liabilities Borrowing 12.99 7.78 Lease Labilities 3.63 4.13 Provisions 1.01 4.43 Deferred Tax Liabilities(Net) 24.60 22.32 Other Non-Current Liabilities 0.26 0.25 Current liabilities 470.30 447.21 Financial Liabilities Borrowing 294.88 264.77 Trade Payable 103.72 112.01 Others 1.80 5.33 Other Current Liabilities 64.65 62.74 Provisions 2.79 2.30 Current tax liability (Net) 2.45 0.05 Total Equities & Liabilities 993.20 895.27*
Rs. Crore	As on 31st Mar’ 24	As on 31st Mar’ 23*
Shareholder’s Funds	480.41	413.24
Share capital	17.38	16.18
Other Equity	456.08	391.52
Non ControllingInterest	6.94	5.54
Non-current liabilities	42.49	34.78
Financial Liabilities
Borrowing	12.99	7.78
Lease Labilities	3.63	4.13
Provisions	1.01	4.43
Deferred Tax Liabilities(Net)	24.60	22.32
Other Non-Current Liabilities	0.26	0.25
Current liabilities	470.30	447.21
Financial Liabilities
Borrowing	294.88	264.77
Trade Payable	103.72	112.01
Others	1.80	5.33
Other Current Liabilities	64.65	62.74
Provisions	2.79	2.30
Current tax liability (Net)	2.45	0.05
Total Equities & Liabilities	993.20	895.27

Rs. Crore	As on 31st Mar’ 24	As on *31st Mar’ 23 **
Non-current assets	289.65	266.46
Property, Plant & Equipment	253.29	234.52
Right of use assets	4.98	6.09
Capital WIP	2.40	0.63
Investments Property	0.01	0.01
Goodwill	7.73	8.85
Intangible Assets	3.04	10.56
FA-Investments	0.12	0.91
FA-Trade Receivables	9.66	9.34
FA-Others	2.84	6.17
Other Non Current Assets	5.58	5.29
Current assets	703.54	628.81
Inventories	293.49	273.80
Financial Assets
Investments	6.96	4.23
Trade receivables	333.51	287.30
Cash & Cash equivalent	3.25	7.27
Bank Balance other than above	8.82	10.10
Loans	7.71	10.21
Other	3.03	0.43
Other Current Assets	46.78	34.47
Total Assets	993.20	895.27

==> picture [960 x 7] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

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

COMPANY OVERVIEW

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

About Us

==> picture [185 x 32] intentionally omitted <==

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

==> picture [45 x 45] intentionally omitted <==

==> picture [34 x 43] intentionally omitted <==

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

==> picture [47 x 34] intentionally omitted <==

==> picture [37 x 34] intentionally omitted <==

==> picture [27 x 32] intentionally omitted <==

Leading player offering total and customized electrical solutions  Incorporated in 1985

  - **State-of- art manufacturing facilities Quality Standards, Assurance &**  Seven manufacturing units located in **Certifications** Tamil Nadu  ISO 9001; ISO 14001; ISO 45001;

  - More than 15 products catering to UKAS Management; IATF 16949 Industrial / Building Electrical /  International Approvals Automobile verticals

Experienced Management Team  Significant experience in Engineering Industry
Headquartered in Coimbatore, Tamil Nadu
Long term vision and proven ability to achieve long term goals for Company
Technical collaboration with Plitron for Toroidal transformers – 1st Company to bring technology to India, Joint Venture with C3Controls for contactors and relays
Caters to sectors such as Engineering, Automotive, Tractor, Bearing and Allied Industries

==> picture [41 x 36] intentionally omitted <==

==> picture [41 x 33] intentionally omitted <==

Strong Domestic & International Customer Base for forging applications

Extensive Product offerings –

200+ Reputed and long-term customers

Preferred supplier to GE, Schneider and only approved supplier of Nuclear Power Corporation
Presence in Industrial Switchgears, Wires & Cables, Energy management and Smart Metering business
Own distribution network – local and global – export to 50 countries with 40 International distributors
Largest manufacturer of Cam Operated Rotary Switches – Market leader with 25% share
Largest supplier of rotary and load break switches to Indian Railways
Access to L&T’s local network through more than 350 distributors

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

From a Single Product Company…

==> picture [185 x 32] intentionally omitted <==

	2018 – Till Date Established to manufacturer of CAM operated Rotary Switches 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 Unit III - manufacture modular switches Started manufacturing of Wire & Cable for L&T 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 2015 - 2020 2001 - 2014 20 1 – Till Date 1985 - 1995 Started commercial production of Three Phase Dry Type Transformers Acquired Salzer Magnet Wires Upgrade in Credit Rating for long-term borrowing to ‘CRISIL A/Stable’ Acquired Kaycee Industries Ltd. Forays into EV Business through JVs with Kostad Steuerungsbau GmbH and EMarch LLP Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031 Receives patent for ‘Motor Protection Circuit Breaker With Increased Air Gap’ Set up new manufacturing rented facility strategically located in Hosur, Tamil Nadu – production to commence in March 2023 Kostad Steuerungsbau GmbH - JV Company has become a Subsidiary Company with shareholding of 60% Building “one-of-its-kind Fully Integrated” Smart Meter manufacturing facility in India	2018 – Till Date Established to manufacturer of CAM operated Rotary Switches 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 Unit III - manufacture modular switches Started manufacturing of Wire & Cable for L&T 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 2015 - 2020 2001 - 2014 20 1 – Till Date 1985 - 1995 Started commercial production of Three Phase Dry Type Transformers Acquired Salzer Magnet Wires Upgrade in Credit Rating for long-term borrowing to ‘CRISIL A/Stable’ Acquired Kaycee Industries Ltd. Forays into EV Business through JVs with Kostad Steuerungsbau GmbH and EMarch LLP Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031 Receives patent for ‘Motor Protection Circuit Breaker With Increased Air Gap’ Set up new manufacturing rented facility strategically located in Hosur, Tamil Nadu – production to commence in March 2023 Kostad Steuerungsbau GmbH - JV Company has become a Subsidiary Company with shareholding of 60% Building “one-of-its-kind Fully Integrated” Smart Meter manufacturing facility in India	2018 – Till Date Established to manufacturer of CAM operated Rotary Switches 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 Unit III - manufacture modular switches Started manufacturing of Wire & Cable for L&T 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 2015 - 2020 2001 - 2014 20 1 – Till Date 1985 - 1995 Started commercial production of Three Phase Dry Type Transformers Acquired Salzer Magnet Wires Upgrade in Credit Rating for long-term borrowing to ‘CRISIL A/Stable’ Acquired Kaycee Industries Ltd. Forays into EV Business through JVs with Kostad Steuerungsbau GmbH and EMarch LLP Receives patent for ‘Integral Cam Operated Rotary Switches’ for a duration of 20 years, ending 2031 Receives patent for ‘Motor Protection Circuit Breaker With Increased Air Gap’ Set up new manufacturing rented facility strategically located in Hosur, Tamil Nadu – production to commence in March 2023 Kostad Steuerungsbau GmbH - JV Company has become a Subsidiary Company with shareholding of 60% Building “one-of-its-kind Fully Integrated” Smart Meter manufacturing facility in India
		Established to manufacturer of CAM operated Rotary Switches 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	Unit III - manufacture modular switches Started manufacturing of Wire & Cable for L&T 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 [960 x 7] intentionally omitted <==

… to manufacturing multiple products across sectors

==> picture [81 x 79] intentionally omitted <==

Professional Management

R. Doraiswamy - Managing Director

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

Qualified Electrical Engineer and Technocrat Entrepreneur with over 4 decades of experience
Vast Experience in Foreign Collaboration & wide global contacts
D. Rajeshkumar – Joint Managing Director

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

Electrical Engineer, India; Postgraduate in Business Management, US
JMD of Company - responsible for driving the vision of Company
P. Sivakumar A - AVP – Marketing Corporate

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

Bachelors in Engineering with over 3 decades of experience
Responsible for Sales & Marketing division

==> picture [94 x 433] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

M Laksminarayana - VP - Operations

B.E (Electrical) with over 2 decades of experience
Responsible for Production, Planning, Inventory Management, Maintenance & General Administration

R. Menaka – General Manager - Accounts

Degree in Commerce with over 3 decades of experience
Extensive expertise in Accounts, Finance, and Taxation

R Karunakaran - GM – PR & GST

BSc, Diploma in Marketing Management with more than 3 decades of experience
Responsible for GST and Public Relations of Company

==> picture [960 x 7] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

==> picture [298 x 299] intentionally omitted <==

BUSINESS OVERVIEW

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Business Overview

==> picture [185 x 32] intentionally omitted <==

==> picture [186 x 24] intentionally omitted <==

==> picture [566 x 24] intentionally omitted <==

==> picture [881 x 23] intentionally omitted <==

==> picture [135 x 136] intentionally omitted <==

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

Industrial Switch Gear Products

Transformers
Terminal Blocks

Building Electrical Products

Rotary Switches
Isolators
General Purpose relays  Modular Switches
Wiring Ducts  Wires & Cables  MPCB’s  MCB’s 
Contactors & OLR’s Changeovers
Control Panels

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

Copper Products

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

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

Smart Meters

 Single Phase Meters

 Three Phase Energy Meters

Management products

Energy Savers
Street Light Controllers
Wire Harness

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Wide Product Suite- Customized for OEM’s

==> picture [185 x 32] intentionally omitted <==

==> picture [7 x 273] intentionally omitted <==

==> picture [107 x 124] intentionally omitted <==

==> picture [107 x 127] intentionally omitted <==

==> picture [110 x 124] intentionally omitted <==

==> picture [109 x 127] intentionally omitted <==

==> picture [7 x 273] intentionally omitted <==

==> picture [104 x 124] intentionally omitted <==

==> picture [104 x 127] intentionally omitted <==

==> picture [113 x 123] intentionally omitted <==

==> picture [113 x 127] intentionally omitted <==

==> picture [7 x 273] intentionally omitted <==

==> picture [102 x 124] intentionally omitted <==

==> picture [101 x 124] intentionally omitted <==

==> picture [210 x 127] intentionally omitted <==

==> picture [7 x 274] intentionally omitted <==

==> picture [98 x 256] intentionally omitted <==

==> picture [110 x 257] intentionally omitted <==

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

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Key Strengths

==> picture [185 x 32] intentionally omitted <==

Complete Backward Integration

==> picture [57 x 45] intentionally omitted <==

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

01
----- End of picture text -----

In-house manufacturing facilities with process capabilities ensures better product development and customization Well developed R&D enables continual product innovation

Wide Product Suite

==> picture [57 x 44] intentionally omitted <==

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

03
----- End of picture text -----

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 Customer Relationships

==> picture [57 x 44] intentionally omitted <==

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

05
----- End of picture text -----

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

==> picture [72 x 76] intentionally omitted <==

==> picture [72 x 75] intentionally omitted <==

==> picture [73 x 76] intentionally omitted <==

==> picture [72 x 76] intentionally omitted <==

Wide Distribution Network

Wide distribution network – international and domestic

==> picture [57 x 44] intentionally omitted <==

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

02
----- End of picture text -----

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

Direct network across 50 countries with 40 international distributors

==> picture [57 x 44] intentionally omitted <==

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

04
----- End of picture text -----

Advanced Engineering Capabilities

Strong engineering capabilities backed by inhouse 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

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Seven Manufacturing facilities...

==> picture [185 x 32] intentionally omitted <==

Unit 1 Unit 3 Unit 2

Unit 5

Hosur Plant

Rotary Switch Contactors & Relays Panel Assembly Toroidal Transformers Lighting Energy Savers Isolators (Dis-connectors) Automatic Meter Terminals Reading Wiring Ducts Three Phase Dry Type Transformers MPCB

Wiring Accessories

Unit 4 Enamelled Copper Wires Fine Enamelled Copper Wires Polyester Coated Winding wires

Wires & Cables

Wire Harnesses

Toroidal Transformers

==> picture [116 x 25] intentionally omitted <==

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

Annur Plant
----- End of picture text -----

Smart Meters

Flexible Bus Bars

Wire Harness

Bunched Conductors

3 PH Transformers

==> picture [960 x 7] intentionally omitted <==

Tinned Wires

==> picture [81 x 79] intentionally omitted <==

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

==> picture [185 x 32] intentionally omitted <==

==> picture [430 x 222] 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

==> picture [443 x 222] intentionally omitted <==

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

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

...And a strong R&D team

==> picture [185 x 32] intentionally omitted <==

In-house R&D Center

R&D expenses (Rs crore)

More than 35 engineers
Recognized by Department of Science, Govt of India
Patented Rotary switches
Six patents in process
Manual Single-Phase Starter with no voltage tripping, Energy Saver System for Street Lighting, Track Feed Battery Changer Over System, Heavy duty energy efficient automatic source change over, Training warning system and Modular Housing
Received two patents for CAM operated rotary switch & Motor Protection Circuit Breaker’ for duration of 20 years, ending 2036
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

==> picture [397 x 297] intentionally omitted <==

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

12,00 12,00
10,37
10,04
9,07
FY20 FY21 FY22 FY23 FY24
----- End of picture text -----

==> picture [614 x 58] intentionally omitted <==

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

Continual focus on product innovation
----- End of picture text -----

==> picture [81 x 79] intentionally omitted <==

Internationally certified

==> picture [110 x 73] intentionally omitted <==

==> picture [153 x 54] intentionally omitted <==

==> picture [99 x 57] intentionally omitted <==

ISO 14001 CE Certification

ISO 9001

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

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

==> picture [115 x 67] intentionally omitted <==

CB certification

RoHS Intertek Semko approval

==> picture [144 x 55] intentionally omitted <==

ISO 18001

==> picture [130 x 73] intentionally omitted <==

==> picture [101 x 11] intentionally omitted <==

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

CSA Certification
----- End of picture text -----

==> picture [185 x 32] intentionally omitted <==

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

==> picture [95 x 11] intentionally omitted <==

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

UL Certification
----- End of picture text -----

==> picture [80 x 107] intentionally omitted <==

... Across entire product portfolio

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Blue Chip Customers

Marketing Tie-up with L&T for Indian Market

==> picture [80 x 25] intentionally omitted <==

==> picture [95 x 37] intentionally omitted <==

==> picture [72 x 49] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

==> picture [82 x 53] intentionally omitted <==

==> picture [97 x 34] intentionally omitted <==

Largest supplier of rotary switches to Indian Railways
Branding partner to various large OEM’s in India
Technical Tie-up with American Company C3Controls, to manufacture & market contactors & overload relays
Technical Tie-up with Trafomodern for Three Phase Transformers

==> picture [88 x 36] intentionally omitted <==

==> picture [101 x 25] intentionally omitted <==

==> picture [95 x 29] intentionally omitted <==

==> picture [51 x 62] intentionally omitted <==

==> picture [102 x 21] intentionally omitted <==

==> picture [68 x 67] intentionally omitted <==

==> picture [107 x 41] intentionally omitted <==

==> picture [76 x 51] intentionally omitted <==

==> picture [104 x 18] intentionally omitted <==

==> picture [93 x 48] intentionally omitted <==

Preferred supplier to:
Nuclear Power Corporation
Schneider Electric
GE Energy

==> picture [90 x 56] intentionally omitted <==

==> picture [99 x 37] intentionally omitted <==

==> picture [78 x 58] intentionally omitted <==

==> picture [86 x 42] intentionally omitted <==

==> picture [94 x 31] intentionally omitted <==

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Wide Distribution Network

==> picture [185 x 32] intentionally omitted <==

==> picture [628 x 333] intentionally omitted <==

International

Direct network across 50 countries
27% of sales from exports (FY24)
40 international distributors
Plans to expand in US, Africa and Middle east

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

Direct network across 50 countries

==> picture [960 x 7] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

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

WAY AHEAD

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

Way Ahead

==> picture [185 x 32] 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

› Seek Technical alliances to develop new and technically advanced products
› Acquired Kaycee Industries for new product development, enter new ventures and leverage brand & distribution network
› Formed JV’s with Kostad Steuerungsbau GmbH & EMarch LLP to enter EV market

==> picture [320 x 317] intentionally omitted <==

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

01
02
03
04
----- End of picture text -----

Focus on margin improvement

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

Growth and expansion of existing product verticals

› Constantly develop new products through in-house R&D
› Expand existing product portfolio to newer geographies
› Ventured into Smart metering manufacturing in Coimbatore

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

ESG Initiatives

==> picture [185 x 32] intentionally omitted <==

Committed towards a cleaner, greener and healthier environment
Optimise energy consumption
Towards this end Company has identified installation of rooftop solar panels
Plan to recycle water as per environmentally friendly norms
Increasing green cover around all plants in and around the manufacturing facilities
Partner in EV Ecosystem to manufacture parts of environmentally friendly transportation
M./s JDS Associates for statutory audit, M/s. Covai Management Services for internal audit and M/s. G. Vasudevan for Secretarial Audit
Five independent Directors out of 11 Members on the Board
Continues to contribute towards skill development among the local population
Recruitment of rural youth for local sales operations
Focus on Better compliances and best governance practices
Plan for gender diversification on the Board in due course
Contribution for women empowerment. Engaged around 50% women employees hailed from local rural areas who are breadwinners of their families
Spending under CSR Initiatives for health Care and education of rural populous particularly residing in the local regions

==> picture [960 x 7] intentionally omitted <==

==> picture [81 x 79] intentionally omitted <==

ESG Initiatives - Carbon Emission by Scope

==> picture [185 x 32] intentionally omitted <==

Scope 1

All Fossil fuels used in factories, such as diesel for backup power and fuels used in Cars, transport & fleet vehicles

Scope 2

Electricity consumed at all factories and offices of Salzer owned facilities
Also the avoidable emissions are calculated by the use of Renewable power by own renewable sources as well as purchased renewable sources

Details	Base Yr - 2019	2023	2024	8.480 4.408 3.511 -92% -25%
Scope 1 (Tons of Co2)	123	191	217
Scope 2 (Tons of Co2)	8357	4217	3294
Turnover INR Cr	559	1013	1135
Scope 1+2 (Tons of Co2)	8480	4408	3511
Intensity	15.17	4.31	3.09
				Base Yr.2019 2023 2024
Delta		(248%)	(40%)

2019 was considered the Base year for calculation. 2020 & 2021 was not considered as it was a year with partial shutdowns due to Pandemic
The Direct Greenhouse Gas (GHG) emission from facilities we operate (scope 1) has increased from 123 tons of Co2 in 2019-20 to 217 tons of Co2 in 2023-24. The increase over the last three years is due to higher activities due to increased turnover
The indirect GHG emissions from Energy consumption (Scope 2) was reduced by 25% in 2023-24 from 2022-23 and this was achieved by taking energy conservation measures and sourcing & generation of renewable power
Scope 1 & 2 put together there is a Net intensity reduction of 40% in 2023-24 from 2022-23
Salzer will continuously endeavor its best efforts in all available avenues to reduce Carbon Emission level by 25% every year and attain the Net Zero Emission level by 2030

==> picture [960 x 7] intentionally omitted <==

==> picture [185 x 32] intentionally omitted <==

Thank You

For further information, please contact: Salzer Electronics Limited

Mr. Murugesh [email protected] www.salzergroup.net

Adfactors PR Private Limited

==> picture [105 x 33] intentionally omitted <==

Ms. Savli Mangle [email protected] Mr. Rupesh Rege [email protected] www.adfactorspr.com

==> picture [960 x 7] intentionally omitted <==

AI assistant

Salzer Electronics Ltd. — Investor Presentation 2024

61391_rns_2024-08-06_bde1ebec-1b1c-43fe-a800-ec0f32bf8d80.pdf

Disclaimer

TABLE OF CONTENTS Table of Contents

Joint Managing Director’s Message

Key Consolidated Financial Highlights – Quarterly

Q1 FY25 Revenue Breakup – Business Verticals

Q1 FY25 Revenue Breakup – Geographical

 Contribution from Exports at 26.34%

Q1 FY25 Consolidated Financial Highlights

FY24 Consolidated Financial Highlights

 Increase in Revenue – driven by business of Industrial switchgear and wire & cable businesses

FY24 Revenue Breakup – Business Verticals

FY24 Revenue Breakup – Geographical

 Contribution from exports was 26.93% in FY24

Key Consolidated Financial Highlights – Annual

Net Profit (Rs. Crore)

Working Capital & Borrowings

Borrowing (Cr.)

Consolidated Balance Sheet Highlights

COMPANY OVERVIEW

About Us

Strong Domestic & International Customer Base for forging applications

Extensive Product offerings –

200+ Reputed and long-term customers

From a Single Product Company…

Professional Management

R. Doraiswamy - Managing Director

M Laksminarayana - VP - Operations

R Karunakaran - GM – PR & GST

BUSINESS OVERVIEW

Business Overview

Industrial Switch Gear Products

Building Electrical Products

Copper Products

Smart Meters

Wide Product Suite- Customized for OEM’s

Key Strengths

Complete Backward Integration

Wide Product Suite

Strong Customer Relationships

Wide Distribution Network

Advanced Engineering Capabilities

Seven Manufacturing facilities...

Unit 5

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

 Full fledged Type testing laboratory

...And a strong R&D team

R&D expenses (Rs crore)

Internationally certified

Blue Chip Customers

Wide Distribution Network

International

Domestic

Direct network across 50 countries

Way Ahead

Operational Excellence

Venture into new project

Focus on margin improvement

Growth and expansion of existing product verticals

ESG Initiatives

ESG Initiatives - Carbon Emission by Scope

Scope 1

Scope 2

Thank You

More from Salzer Electronics Ltd.

Salzer Electronics Ltd. Investor Presentation 2024