Dixon Technologies (India) Limited
CORPORATE PRESENTATION DISCLAIMER
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dixon Technologies (India) Limited (the “Com- pany”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or sub- scribe 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 in- dustry 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
Dixon Technologies (India) Limited Technologies Dixon 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.
01 Corporate Presentation CONTENTS
04 15 26
CORPORATE SEGMENT LEADERSHIP
Dixon Technologies (India) Limited Technologies Dixon OVERVIEW OVERVIEW TEAM
02 Corporate Presentation CORPORATE OVERVIEW ABOUT DIXON TECHNOLOGIES
Leading Diversified Leading Integrated Vision Player in Electronic Product portfolio cov- Brands of electronics Business model has To be the most preferred Manufacturing Service ering multiple elec- and home applianc- helped derive greater & trusted manufactur- (EMS) space in India tronic segments es as our clients operating efficiencies ing & solution partner to brands operating across verticals Dixon Technologies (India) Limited Technologies Dixon
04 Corporate Presentation OUR PRODUCT SEGMENTS
Consumer Electronics Lighting Solutions Home Appliances
48% 26.0% 9.0% share in total Revenue share in total Revenue share in total Revenue
Mobile Phones Security Devices Reverse Logistics
12.0% 5.0% 0.4% Dixon Technologies (India) Limited Technologies Dixon share in total Revenue share in total Revenue share in total Revenue
Note: Figures as on FY 2020
05 Corporate Presentation OUR EXISTING PLANT LOCATIONS
Dehradun Factory Noida 270 KM from Delhi HO, R&D Centre for UNIT 1 – Lighting (1.74 Lac Sq Ft) CTVs and Lighting UNIT 2 – Washing Machine (50K Sq Ft) UNIT 3 – Washing Machine (81K Sq Ft) UNIT 4 – Washing Machine (38 K Sq Ft) Noida Factory
20 KM from Delhi UNIT 1 – AC-PCB & Lighting (42K Sq ft) UNIT 2 – Lighting (83K Sq Ft) UNIT 3 – Lighting (21K Sq Ft ) UNIT 4 – Mobile Phones & Reverse Logistic (2.23 Lac Sq ft) UNIT 5 – Mobile Phone (21K Sq Ft) Tirupati Plants
LED TVs CCTV/DVR (13.9 Lac Sq Ft) Dixon Technologies (India) Limited Technologies Dixon
10 Manufacturing Plants covering 21 lacs sq ft employing approx 11,100 people
06 Corporate Presentation DIXON – EXCEPTIONAL OPPORTUNITY WITH SOLID FOUNDATION & STRONG TAILWINDS
Basic tenets of the opportunity Core Strengths
Broad technical skillsets : Brand & Product agnostic Deep capabilities in semiconductors, polymer & metals processing, thermal management, box building, etc. Dixon is the largest Indian player with broadest product and customer experience and highly successful track-record
Nimble, Capital Brands moving away from core manufacturing Light, Fast End To Globally, OEs more focused on branding, sales and futuristic tech End Execution Cost structures of OEMs are prohibitively expensive. Brands leaving base manufacturing to 3Ps
Make in India, Consume in India Solid track record of Strong government push for ‘Make in India’ in broader Electronics and Mobile category the management Policy measures to make imports unattractive and incentivising domestic production
Dixon Technologies (India) Limited Technologies Dixon CHINA + 1 Strategy India manufacturing wages ~1/3rd of China Risk mitigation strategy adopted by lot of Western, Japanese and Korean brands
07 Corporate Presentation DIXON – CONSTANTLY EXPANDING ITS PRODUCT PORTFOLIO & COMMANDS UNDISPUTED LEADERSHIP POSITION ACROSS SEGMENTS
1994 2007 2008 2010 2016 2017 2019 2020
Colour TV’s LCD TV CFL Lighting & LED TV & Washing Mobile Phones CCTV and DVR Set Top Box Top Load Washing Reverse Logistics Machines Machines and Medical Electronics Dixon Technologies (India) Limited Technologies Dixon
08 Corporate Presentation DIXON – CONSTANTLY EXPANDING ITS PRODUCT PORTFOLIO & COMMANDS UNDISPUTED LEADERSHIP POSITION ACROSS SEGMENTS (Contd...)
#1
Market position in LED Lighting, LED TV, Amongst Top 5 globally in LED lighting Washing Machine, Security Cameras (capacity, product portfolio, technology and cost competitiveness)
Wide Core strengths in Electronic New Electronic Exports opportunity components, surface mounting, box verticals Opportunity building, semiconductors, silicon, Dixon Technologies (India) Limited Technologies Dixon landscape in thermal management, wound Which offers - Scale and size, scope Addressing Global demand Electronics components, polymer processing, of backward integration & ODM, high plastics & sheet metal asset turnover and strong return ratios
09 Corporate Presentation DIXON – SOLID MANUFACTURING BASE BACKED BY INVESTMENTS IN R&D AND RAPIDLY BUILDING ODM CAPABILITIES
One of India’s largest manufacturing plant for consumer electronics
Location Category Capacity (mn pa) Highlights 2.1 mn Tirupati, AP LED TVs 4.4 square feet CCTV 7.5 Largest TV assembly Total plant area plant DVR 1.5
Dehradun, Largest Washing Uttarakhand Washing machines 1.2 Machines assembly plant
Noida, UP LED bulbs 240.0 Largest LED bulbs assembly plant Mobile phones 40
Dixon Technologies (India) Limited Technologies Dixon Presence in both North 10 and South India Integrated Increasing backward Manufacturing units integration
10 Corporate Presentation DIXON – SOLID MANUFACTURING BASE BACKED BY INVESTMENTS IN R&D AND RAPIDLY BUILDING ODM CAPABILITIES (Contd...)
Backed by dedicated R&D, end to end product development..
R&D Core Global Reverse Capabilities skillsets Sourcing Logistics
In-house 01 3 R&D centers 39 employees designing Deep access to global & End user service enhancement across Noida, including domestic suppliers Dehradun and engineers Repair and refurbishment for set China 02 Plastic Sourcing at scale ensures top box, LED TV & mobiles Moulding competitive prices and aids margins Sheet 03 metal Institutionalised Joint processes Development 04 Wound Deep understanding of electronics manufacturing to develop Model for larger components conceptual ideas sophisticated into deliverable clients Back light unit 05
Dixon Technologies (India) Limited Technologies Dixon products clean room
06 PCB assembly
11 Corporate Presentation DIXON – SOLID MANUFACTURING BASE BACKED BY INVESTMENTS IN R&D AND RAPIDLY BUILDING ODM CAPABILITIES (Contd...)
..and fast developing ODM capability In-house capabilities for New design with features like designing complete range magic filter, water fall, (%) ODM share in overall business of semi-automatic washing side scrubber and air dry machines developed in WM category
38 Over 2,000 2.2X 140 models 34 from 6.0 - 10.0 Kg in semi variants of LED bulbs automatic Washing Machine 27 Significant increase of 0.5–50 watts in ODM capabilities in
22 22 lighting business from 12% in 2015 to 87% in 2020
15 Share of ODM business in LED lighting solutions from variants Washing Machine at 100% ~30 0.5W - 50W & include main in fully Automatic Top Loading Ongoing plans to increase
Dixon Technologies (India) Limited Technologies Dixon electronic board designing, ODM in LED TV to be launched in 3Q20 mechanical & packaging design
FY15 FY16 FY17 FY18 FY19 FY20
12 Corporate Presentation DIXON – FOCUS ON VALUE PROPOSITION FOR CUSTOMERS
Comprehensive value proposition has led to dominant share of business from reputed customers
Quality & Scale Continuous Cost-effective Integration Innovation Solution
High level quality adherence Able to pass on the benefit of Strong R&D team with proven Global Sourcing & process economics of scale to customers expertise in developing own Frequent quality audits Frugal, flexible & fungible designs Efficient and nimble supply manufacturing base Never posed an “own brand” chain to respond to demand Continuous effort to come out risk to customers In-house capabilities for polymers, fluctuations with Innovative low cost solutions plastics, sheet metal, , surface Cost leadership with integrated ODMs have been approved by mount , box building etc manufacturing set-up and global global Brands Backward integrated sourcing capabilities manufacturing facilities Availability of skilled and unskilled manpower at manufacturing
Dixon Technologies (India) Limited Technologies Dixon facilities
13 Corporate Presentation SEGMENT OVERVIEW SEGMENTS
Consumer Electronics Lighting Solutions Home Appliances Mobile Phones
Set Top Boxes Security Devices Reverse Logistics Medical Electronics Dixon Technologies (India) Limited Technologies Dixon
15 Corporate Presentation LED TV
Revenue (crs) Dixon USPs 40% End to end solution including Auto CAGR Insertion, SMT, LCM Module Assembly 4.4 mn Units p.a
2,095 Backward integration into LED panel Largest capacity of LED TV (31% of the India Market re- assembly with clean room quirement 2.4 Product portfolios – 19 to 65 inches, 1,194 1,073 ATV, 2K, 4K UHD, Smart, Semi-smart, Android certified , Linux based TV SMT Capacity of 2 mn p.a 2.1 2.1 with AIOT platform and voice control features Strengthening R&D for more & more ODM solutions FY18 FY19 FY20 Marquee clients – Domestic & Foreign
EBITDA Margin (%)
Key Clients Dixon Technologies (India) Limited Technologies Dixon
16 Corporate Presentation LIGHTING PRODUCTS
Revenue (crs) Dixon USPs 21% India’s most respected manufacturer CAGR having largest assembly capacity in lighting 240 mn Units p.a industry Largest capacity of LED bulbs 1,140 (45% of the India Market re- Backed by our strong R&D capabilities 919 quirement)
774 enabling to develop new lost cost innovative 8.6 Among top 10 players in the products World
7.2 Backward Integration include Sheet metal, Plastic Moulding & Wound components 6.1 90% Revenues coming Product portfolios – LED Lights, Ballast, Tube from ODM solutions FY18 FY19 FY20 lights, Battens, Downlighters & LED drivers Capacity expansion in Battens EBITDA Margin (%) Technology, Product Portfolio & cost & Downlighters – target for 25% share in Indian Market competiveness to capture Global Markets
Key Clients Dixon Technologies (India) Limited Technologies Dixon
17 Corporate Presentation HOME APPLIANCES
Revenue (crs) Dixon USPs 26% Large Semi Automatic Washing Machine plant CAGR in India 1.2 mn Units p.a
396 Semi Automatic: Largest product portfolio of 140 Largest capacity of Semi Au- Models ranging from 6 kg -10 kg tomatic Washing Machines in
374 India (28% of the India Market
250 Leveraging strong R&D capabilities to design requirement 11.6 and produce technologically advanced washing machine 9.9 State of art Lab facility with environmental 100 % ODM Solutions both on Chamber 12.3 Semi Automatic & Fully Auto- Backward Integration : Plastic Moulding. matic Top Load version FY18 FY19 FY20 Bought out components include Motors, Clutch
EBITDA Margin (%) assembly & PCBA Process of initiating production of top loading fully automatic washing machine with 30 models from Q3, FY 20-21 with capacity of 6 lacs
Key Clients Dixon Technologies (India) Limited Technologies Dixon
18 Corporate Presentation MOBILE PHONES
Revenue (crs) Dixon USPs State of art infrastructure with SMT & other
testing equipments 40 mn Units p.a
670 Samsung has outsourced 100% 2G One of the largest EMS players in India production & units works under their. 537 3.6 Global GMES
355 Dixon will start manufacturing approx 6.5 lacs smart phones monthly Samsung from state of the manufacturing 2.1 2 July, 20 plants in Noida
1.0 Rich experience of working with global FY18 FY19 FY20 brands like Samsung, Panasonic, LG & Gionee apart from domestic brands like EBITDA Margin (%) Micromax, Intex Strong Manufacturing & Quality team with in-house developed MES
Key Clients Dixon Technologies (India) Limited Technologies Dixon
19 Corporate Presentation SET TOP BOXES
Dixon USPs Started manufacturing Set Top Boxes for Jio (Hybrid & Cable) & Dish TV
Active & Deep discussions with a big MNC brand for manufacturing of Set Top Boxes
Set Top boxes as a new line of business will start contributing significant portion to the company revenues
Key Clients Dixon Technologies (India) Limited Technologies Dixon
20 Corporate Presentation SECURITY SYSTEMS
Revenue (crs) Dixon USPs Dixon AIL: 50-50 joint venture between Dixon 216 & Aditya Infotech Limited to manufacture CCTV 7.5 mn units p.a security surveillance equipments
DVRs mn units p.a The JV partner holds trademark for CP Plus 1.2 112 and Dahua brands
1.1 3.3 -185.7 ~30%
1 Market Share in India
FY18 FY19 FY20 State of the art facility in Tirupati EBITDA Margin (%)
Key Clients Dixon Technologies (India) Limited Technologies Dixon
21 Corporate Presentation REVERSE LOGISTICS
Revenue (crs) Dixon USPs This vertical offers repair services of LED TV,
73 mobiles & Set-top box
Refurbishment for LED TV, mobile, modems, 16.9 set-top box & computer peripherals
30 One of the few companies to have Panel 7.8 Repairing Facility 16 One of the leading company who offer LED -5.7 TVs refurbishment FY18 FY19 FY20
EBITDA Margin (%)
Key Clients Dixon Technologies (India) Limited Technologies Dixon
22 Corporate Presentation MEDICAL ELECTRONICS
Dixon USPs Dixon is getting into Medical electronics vertical
MOU already signed with Molbio for manufacturing of Truelab™ Quattro Real Time Quantitative micro PCR Analyzer machines
These portable machines are capable of performing 190-200 tests per day of critical infectious diseases including COVID-19
This technologically driven machines manufactured at manufacturing facility situated at Tirupati, Andhra Pradesh, India
Recently validated and approved by Indian Council of Medical Research (ICMR) to conduct COVID-19 tests
Simple to use & provide results within one hour of sample collection
Results can be seen on the screen or printed or shared wirelessly through GPRS , Wi-Fi & Bluetooth to any remote device
Strong demand for the kits from Govt hospitals, private diagnostic laboratories & Global Markets
Brand Dixon Technologies (India) Limited Technologies Dixon
23 Corporate Presentation KEY HISTORICAL FINANCIALS
Total Revenue (INR crs) EBITDA (INR crs) ROCE (in %) 30% 46% CAGR CAGR 4,405 228 38 35 33 28 27 2,990 2,858 141 2,500 117 16 93 1,392 60 1,203 34
FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 Dixon Technologies (India) Limited Technologies Dixon
24 Corporate Presentation LEADERSHIP TEAM HIGHLY EXPERIENCED MANAGEMENT TEAM WITH LEAN ORGANISATIONAL STRUCTURE..
Mr. Sunil Vachani 27+ Mr. Atul B Lall 28+ Mr. Saurabh Gupta 18 3 Mr. Abhijit Kotnis 30+ 2 Mr. Vineet Mishra 25 16 Mr. Rajeev Lonial 33 10
Executive Chairman Managing Director Finance, Accounts and Commercial Consumer Electronics Lighting Home Appliances
American College in London BITS Pilani (Masters in Management) Group CFO COO Television COO Lighting COO Washing Machine (Business Administration)
Dixon Technologies (India) Limited Technologies Dixon Mr. Pankaj Sharma 31 10 Mr. Ashish Kumar 17+ 3 Mr. Muneesh Dhawan 34+ 4 For more details scan the QR Code Mobile & CCTV Legal & Secretarial/ HR Business Development Years of professional experience COO Mobile Phones Gr. Company secretary, VP Business Development Head- Legal & H.R. Years of professional experience with Dixon
26 Corporate Presentation COMPANY LEADERSHIP IS WELL SUPPORTED BY AN EXPERIENCED BOARD OF DIRECTORS
Mr. Keng Tsung Kuo Mr. Manoj Maheshwari Ms. Poornima Shenoy Dr. Manuji Zarabi
MBA, Masters - Electrical FCA, FCS, MBA Marketing PG Diploma - Management, BA PhD - Philosophy
2019 2017 2017 2017
30+ years experience in Member of ICAI (Institute of Serial entrepreneur and Retired as Chairman cum business & selling strategy, Chartered Accountants of founding President of India MD of Semiconductor HR & globalization strategy, India) Electronics & Semiconductor Complex Limited, (a Govt. of change management and Association (IESA) India enterprise) in 2005 Experience of over three leadership decades in finance Member of working group Previously associated with functions including M&A, on development of R&D and global conglomerates such capital expenditure and IP in electronic formed by as Hewlett-Packard Taiwan capital-raising DeitY LTD, Microelectronic Corp. and MediaTek Inc. Dixon Technologies (India) Limited Technologies Dixon Served as adjunct professor in National Taiwan University.
27 Corporate Presentation THANK YOU
B 14 & 15, Noida Phase II, Pin – 201305, U.P. India Phone: +91-120-4737200 | E-Mail: [email protected]