Announcement Under Regulation 30 Of SEBI LODR

This is to inform you that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the 'Listing Regulations"), read with Part A of Schedule III of the Listing Regulations, we hereby enclose the Investor Presentation. Kindly take the same on your records.

27 days ago

INVESTOR PRESENTATION

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Sentiments detected

Positive 55
  • 25+ years of domain expertise in Global Operations with strong Concept to Commissioning 1,800 Employees Electronics Design & Manufacturing presence in India, Europe and North capabilities 650 Designers Solutions America Flexible Engagement Models Strong Supply Chain Network Strong relationship with marquee Serving segments with Hi-Tech, High global clients Entry Barriers Healthy Order Book of Single Source Supplier for ~80% of 75% Revenues from Overseas Strong Corporate Governance ~INR 11,200 Mn* manufactured products Customers in Advanced Economies * As on 30 th June 2022, Not including client forecasts of EMS division & signed LOIs for Transportation products 2

  • 8 9 9 4 8 4 key solutions to take project from conception to 8 7 0 1 , 2 1 - World-class design & manufacturing facilities across mass production quickly and efficiently.

  • FY20 FY21 FY22 Q1-FY23 infrastructure as well as a global supply chain capable of delivering products with high quality Operational Revenue EBITDA EBITDA Margin and reliability anywhere in the world.

  • - Greenfield expansion for EMS capacity • Acquisition of Adetel Group to expand service offerings of ER&D Services, establish global footprint across Europe and 2016-2022 North America and new customer/market access Future Proof •

  • Expansion stake to JV partner - Capacity enhancement for space & defence business to support strong order book growth •

  • FCP business growth in Telecom due to product performance & global cost leadership 2010-2016 •

  • Defence & Space segment growth due to indigenization thrust and defence offset policy Growth across the board •

  • Growth in EMS business after investment in international Sales & Marketing - Demerger of EMS into Solectron EMS 2006 - 2010 •

  • Buy back & Merger of EMS following Flextronics’ acquisition of Solectron Restructuring • Centum Rakon JV formed for Frequency Control Products (FCP) for technology and market access to global OEMs - Exit of domestic telecom components business for C-DOT • Incorporated and set up manufacturing facility for Hybrid Microelectronics • Inaugurated as a pioneer in High-Tech electronic manufacturing in India 1993 - 2006 •

  • Established a leading position in the Indian telecom components market

  • Initial Years • JV with CMAC Industries Canada followed by entry and growth in export markets •

  • Foray and growth in EMS business following Solectron’s acquisition of CMAC Industries 4

  • He has initiated and a global powerhouse in Product Engineering and Digital Transformation successfully managed joint ventures with several multi-national services.

  • applications have been well recognized.

  • He has worked extensively accelerating the growth of our Group both in France and abroad.

  • Under his leadership, the company has grown into a highly reputed company with 600 employees in France, Canada and Belgium and India.

  • He facilitated the acquisition of Adetel by Centum Electronics to benefit from the advantage of greater international presence and strong manufacturing capability.

  • Best Electronic System Excellence in Financial (Mr Mallavarapu Apparao) Design Company Award Reporting from ICAI A&D Category 9

  • Integrated Fast New • Strong Domain Expertise to the customers Engineering R&D by Program Management to conceptualize & balancing on- can reduce time to realize High-Reliability - Uniquely positioned as shore/offshore mix market, support costs Electronics a one-stop-shop solution provider with •

  • Flexible engagement base and supply chain improves quality in framework models tailored to strengths ramp-up project-specific needs - Ability to manage - Focus on “Design To product lifecycle

  • Deeper entrenchment of customers by offering one-stop- Clear focus towards achieving shop solutions with vertically sustainable growth, while integrated capabilities and enhancing margin profile by value-added services reducing costs and deleveraging Expand customer portfolio domestically and

  • Leverage “Make in India” internationally policy boosters Enhancing customer penetration in high growth industry verticals like Identify opportunities in Healthcare, Automotive etc.

  • Prudent expansion in infrastructure & technical Enhance solutions towards competencies to support Industry 4.0 for increased growth digitization and automation 12

  • The company’s design centers are located in Europe, North America and India, which enable the company to work closely with international customers while bringing together the best talent from around the world to work on complex problems and provide a competitive solution by managing the optimal onshore/offshore mix for the projects.

  • - By providing scalable manufacturing solutions and a flexible, proactive approach to managing the supply chain and lifecycle related challenges, Centum helps customers achieve their goals of lower Total Cost of Ownership and reduced time-to-market among others.

  • Centum’s unique positioning with a full range of integrated capabilities makes it the ideal product realization partner.

  • This engagement model involves higher IP and value creation opportunities for both the customer and for Centum.

  • The company is also able to better the product Lifecycle management by proactively and effectively managing issues such as obsolescence, performance upgrades, market-specific localization and cost reduction.

  • - Centum has established a credible track record since 2002 in this segment delivering complex products that address applications in launch vehicles, satellite payloads, satellite bus systems as well as ground equipment.

  • • Centum has made significant investments to ensure that they can deliver products with the right quality, technology and in required quantities to be a trusted partner.

  • Over the years the company has been successful in developing and manufacturing critical systems for major Defense programs that span across the land, air and naval systems with applications in Missiles, Electronic Warfare, Radar, Military Communications, and fire control amongst many.

  • Diagnosis - Centum’s expertise in energy conversion and storage technology has helped customers develop customized Microgrid solutions as well as new solutions for railway infrastructure projects.

  • - The field of healthcare is rapidly adopting new technologies to augment the quality of treatment and create efficiencies for healthcare providers.

  • domains has positioned us well to support our customers as they develop new products and technologies to stay ahead.

  • Global Electronic Market Size (USD Tn) - The Electronics System design & manufacturing (ESDM) sector in India is predicted to reach to US$ 7.5 7.30 220 billion by 2025, expanding at a 16.1% CAGR between 2019 and 2025.

  • In a span of two years, India’s export of electronic goods has grown 85% to reach USD 11.8 Bn in 6.5 6.30 6.50

  • FY20, increasing its share in the global electronics market to 3.3% 6.10 6 - Indian Electronics System Design & Manufacturing (ESDM) market is valued at USD 105 Bn in FY20 5.5 and is expected to grow steadily and reach USD 220 Bn by 2025.

  • 2022E 2023E 2024E 2025E expected to grow 2x from USD 81 Bn in 2020 to reach USD 160 Bn by 2025.

  • The Electronics Design Market is expected to grow from USD 24 Bn in 2020 to reach USD 60 Bn by 2025.

  • This makes the country a strong base 300 C A G R 240 for future innovations and for the availability of a skilled workforce.

  • The Reduction of corporate taxes, announcement of schemes to 50 incentivize manufacturing and capital investment in India combined with a large, growing 0 domestic market and globally competitive wage rates present a very good case for Indian

  • China being a strong contender for several companies.

  • The government is taking several initiatives to encourage domestic manufacturing and reduce its external Ordanance factory board dependence for defence procurement.

  • In January 2021, Defence Research and Development Organisation 16% (DRDO) announced that it will support at least 30 start-ups every year to develop innovative products for Indian defence forces.

  • The government announced measures under the ‘Make in India’ initiative, including raising PSUs/JV Public 7% Sector foreign direct investment (FDI) limit from 49% to 74% via the automatic route; this resulted in significant FDI Private undertaking inflows in the defence and aerospace sector.

  • Companies 55% 22% - Space: The number of satellites and launches has steadily increased over the past 5 years for applications ranging from communications, defence, earth observation and other scientific missions.

  • The demand for more Global Share of Military Expenditure satellites remains strong as transponder capacities need to be augmented to support increasing data/broadband and DTH requirement.

  • Others observation missions as well as MoDs objective to strengthen India’s space warfare capabilities, provide further Korea 2% 24% USA Japan 36% impetus to the sector over the medium term.

  • Governments are expected to continue major infrastructure projects across geographies to support United Kingdom China 14% longer-term objectives of managing mobility more efficiently in cities and towns.

  • On the other hand, electrification and power grid infrastructure projects are expected to remain 58 81 65 relatively stable.

  • There is also expected to be more investment and demand for remote 20 monitoring and devices that enable telemedicine and predictive diagnostics.

  • India's Engineering Export (USD Bn) - Global Engineering R&D (ER&D) space and estimated that the Global ER&D spend by organizations worldwide stands at USD 1.4 Trillion in 2019, and is expected to grow at a CAGR of 120 111 7% to cross USD 2.2 Trillion by 2025.

  • As of now, India accounts for $10.6 billion of the digital 60 engineering market share which is expected to increase four-fold in five years.

  • During 2021-22, the total engineering goods exports of India 0 were valued at US$ 111 billion; a 52% increase from the previous year.

  • FY19 FY20 FY21 FY22 - The Indian ER&D sector already employs about 7,00,000 people in the country, which could rise to one million by 2025, if the conditions for growth become more favorable - India’s engineering R&D market will increase from US$ 28 billion in FY18 to US$ 42 billion by FY22F. India needs Rs 235 trillion (US$ 3.36 trillion) of investment in infrastructure in the next decade.

Negative 1
  • The sharp decline in oil price combined with the temporary (USD Bn) reduction in capex budgets for many industrial companies is expected to have a short-term adverse impact in 80 73 this segment.

Mentioned Phrases & Organizations

Important keywords detected (20+)

centum (46)
india (29)
design (29)
manufacturing (29)
electronics (25)
current (25)
products (24)
services (23)
financial (22)
business (20)
global (19)
engineering (18)
market (18)
defence (15)
assets (15)
customers (14)
growth (14)
usd (14)
system (13)
production (13)

Organizations identified (10+)

Centum (5)
Centum Electronics Limited (4)
Valorem Advisors (4)
ISRO (3)
FPGA (2)
Analog (2)
Adetel Group (2)
DRDO (2)
PRESENTATION (1)
Global Operations (1)

Tables extracted (4)

Particulars (INR Mn)FY20FY21FY22Q1-FY23
Operational Income4,8244,2453,480980
Total Expenses4,1113,6213,055920
EBITDA71362442560
EBITDA Margins (%)14.78%14.70%12.21%6.12%
Other Income43395814
Depreciation13115816540
Finance Cost27717414633
Exceptional Items--(18)-
PBT3483311541
Tax9891361
PAT2502401180
PAT Margins (%)5.18%5.65%3.39%NA
Diluted EPS (INR)19.4218.609.12(0.01)
Particulars (INR Mn)FY20FY21FY22
EQUITY AND LIABILITIES
Equity2,3632,5472,645
(a) Share Capital129129129
(b) Other Equity2,2342,4182,516
Non Current Liabilities28521685
(a) Financial Liabilities
(i)Borrowings197114-
(ii)Other Financial Liabilities2--
(iii) Lease Liabilities24132
(b) Government Grants173427
(c) Net non-current employee defined benefit liabilities455556
Current Liabilities3,7142,5802,730
(a) Financial Liabilities
(i) Borrowings1,4941,283980
(ii)Trade Payables1,136592726
(iii)Other Financial Liabilities2719384
(iv) Lease Liabilities62012
(b) Government Grants488
(c) Other current Liabilities686469859
(d) Net current employee defined benefit liabilities666
(e) Provisions343325
(f) Liabilities for current tax (net)777630
TOTAL EQUITY AND LIABILITIES6,3625,3435,460
Particulars (INR Mn)FY20FY21FY22Q1-FY23
Operational Revenue8,8338,1747,7992,085
Total Expenses7,8527,2797,0561,971
EBITDA981895743114
EBITDA Margins (%)11.11%10.95%9.53%5.47%
Other Income153588026
Depreciation414453432110
Finance Cost36829526360
Share of profit / (losses) of associates and JV from continuing operation(5)(11)(46)-
Exceptional Item(105)-(604)-
PBT242194(522)(30)
Tax747413(4)
PAT from continuing operations168120(535)(26)
PAT Margins (%)1.90%1.47%NANA
Diluted EPS from continuing operations (INR)15.7413.30(23.70)(1.67)
Price Data (As on 30 th June, 2022)
CMP402.9
52 Week H/L659.2/388.0
Avg. Vol. ('000)29.1
Avg. turnover (Mn)39.2
Market Capital (INR Mn)5,191.0
Total outstanding shares (Mn)12.9

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