Schneider Electric Infrastructure Limited has informed the Exchange about Investor Presentation
SEIL/Sec./SE/2022-23/13
May 24, 2022
The Manager Listing Department National Stock Exchange of India Ltd Exchange Plaza, Bandra Kurla Complex Bandra (East), MUMBAI 400 051 Fax # 022-2659 8237/8238/8347/8348
The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street MUMBAI 400 001 Fax # 022-2272 3121/2037/2039
Symbol: SCHNEIDER
Scrip Code No. 534139
Sub: Investor Presentation on Audited Financial Results for 4th quarter and financial year ended March 31, 2022
Dear Sir(s),
In continuation of our letter no. SEIL/Sec./SE/2022-23/9 dated May 20, 2022 regarding schedule of investor conference call, please find enclosed herewith the copy of investor call presentation on the Company’s Audited Financial Results for the 4th quarter and financial year ended March 31, 2022, approved by the Board of Directors in their meeting held on May 21, 2022.
This presentation will be made available on the Company’s website i.e. www.schneider-infra.in.
We request you to kindly take the above on record.
Thanking you.
Yours Sincerely,
For Schneider Electric Infrastructure Limited
(Bhumika Sood) Company Secretary and Compliance Officer
Encl: As above
Schneider Electric Infrastructure Limited Corp. Office: 9th Floor, DLF Building No.10.Tower C, DLF Cyber City, Phase II, Gurgaon – 122002, India; Tel: +91 124 7152300; Fax.: +91 (0) 124-422 2036; www.schneider-infra.in
Regd. Office: Milestome-87, Vadodara - Halol Highway, Village Kotambi, Post Office Jarod Vadodara -391510, Gujarat; Tel: +91 02668 664300 Fax: +91 664621; CIN: L31900GJ2011PLC064420
Schneider Electric Infrastructure Limited
FY 2021-22 | 24th May 22
Schneider Electric Infrastructure Limited – Investor Presentation
Page 1
Disclaimer
All forward-looking statements are Schneider Electric Infrastructure Limited (India) management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. . This presentation includes information pertaining to the our markets and our competitive positions therein. Such information is based on market data and our actual sales in those markets for the relevant periods. We obtained this market information from various third party sources (industry publications, surveys and forecasts) and our own internal estimates. We have not independently verified these third party sources and cannot guarantee their accuracy or completeness and our internal surveys and estimates have not been verified by independent experts or other independent sources.
Schneider Electric Infrastructure Limited – Investor Presentation
Page 2
2
Economy continues to show positive signs of growth
GDP1 Forecast
GFCF2 Forecast
IIP3 Actual
GDP growth
20.1
GFCF growth
62.5
IIP
4.4
4.2
14.4
8.5
5.4
2.4
24.0
14.6
2.0
-1.0
1.5
1.7
1.0
0.7
June’21
Sep’21
Dec’21P
Mar’22 P
Jun’22 P
June’21
Sep’21
Dec’21
Mar’22P
June’22 P
Sep’21 Oct’21 Nov’21
Dec’21
Jan’22
Feb’22
Real GDP Growth Rate GDP grew by 5.4% YoY, at a lower rate than Q3’21, due to a sharp dip in Construction & fall in manufacturing
Capex Growth Rate GFCF saw a tepid growth of 2% in Q4’21, with a slowdown in private sector Capex
IIP Actuals Tepid growth of 1.7% in Feb’22, on account of slow growth in mining & electricity
Construction sector shows sharp dip in Q4 & degrew by - 2.8%, Manufacturing saw a meagre growth of 0.2% YOY
Private sector investment continues to be on the lower side & recovery is likely to be slow
High oil price likely to impact inflation & govt budgeted fiscal numbers
PFCE 4 growth slowed down , private consumption demand yet to reach pre covid levels
Manufacturing & electricity saw tepid growth of 1.4% & 2.7% respectively, while mining & quarrying sector grew by 6% in Q3
Schneider Electric Infrastructure Limited – Investor Presentation |Page 3
Internal
Projections as per CMIE, and Economic Survey ; growth nos. YoY
4PFCE: Private final consumption expenditure
1 Gross Domestic Product
2 GFCF: Gross Fixed Capital Formation
3 IIP: Index of Industrial Production 3 IIP: Index of Industrial Production
Segment Overview
Power & Grid
MMM
Transportation
Data Centers
Digitization
Strong Capex in Cement & Steel
Capex in PPP Airports
100 Mn Smart prepaid meters by 2023 | Grid mordenization | Cyber security
Shree cement | JSW | Ambuja | Tata steel
36K CR investment for greenfield airports
Strong growth in DC Markets
expansion @ 14% CAGR
Sustainable Energy
Cement Demand to grow by ~7%
Investment in Railways
GOI Target 50% energy from non- fossil fuel by 2030 | Storage management
Rural housing demand | Infrastructure
Metros | High Speed Rail | Smart coaches
High Investment
colocation facilities | hyper-scale
Make in India
local content > 60%
Digital solutions
Process automation
Urban Transportation
Govt focus on urban transportation projects
Edge DC
Picking up in Tier – 2 cities
Schneider Electric Infrastructure Limited – Investor Presentation |Page 4
Internal
Accelerating on our strategic Priorities
More Digital Building on Connected Products Portfolio & Leading solutions with Software
More Services More digital services & Modernization jobs to Leverage Install base
Increase Coverage
Building & Supporting Robust Partner Network
Accelerate segments Segment focused approach with newly realigned organization
Green MV Green Future with SF6 Free Switchgear
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 5
Internal
More Digital | Our Wins
Leading Digitalization for Steel Plant
Customer Challenges
Strengthening of Main Receiving Sub-Station
Modeling ,Engineering and testing of New Substations 132/11kV
Our Solution
Success Factor
11kV HT Switchgears
132/11kV Power Transformer
ETAP SCADA + PSMS
Strong C level connect & Winning GTM strategy
Synergy with ETAP & package support to the EPC
Existing install base & service support
FO/BO Synergy – site visits, solution clarity
Good engagement between different internal & external stakeholder
Opened doors for few other MMM inquiries from other major Steel Plants
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 6
Internal
More Services | Our Wins
Executed partnered approach between SEF & SEI with a Defence PSU Shipbuilder
Customer Challenges
Ageing installed base
Continuous monitoring of Critical assets
Technology oriented customer focused on safety, less shutdowns wanted to upgrade to latest technology
Our Solution
Success Factor
EOL Service Support & Tailor-made Spares
Improved customer experience
Assurance to customer for an overall support –
Partnership of SEF & SEI
Reliable & timely resolution for an
un-interrupted operation
Re-establishment of supply chain with support from
Ecofit France
100% Customer Satisfaction with EOL Service Support & Tailor-made Spares
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 7
Increase Coverage | Our Wins
P&G Segment Order for multiple projects in State Distribution Utility
Customer Challenges
Our Solution
System Improvement & Implementation of 24 X & Power Supply
Upgradation from OD to ID S/S and installation of new SCADA enabled equipment.
Success Factor
33kV & 11kV AIS with Arc flash
Strong Connect with End User
protection
Easergy IED’s & 11kV & 33kV Smart
RMU’s
Favorable GTM with established EPC
Substantial numbers of installed base
Early Identification of projects
SE connected products make approx. 80% of the installed base for all the future digital projects by this Distribution Company
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 8
Internal
Easergy IED, MV AIS & RMUs
Progress with Partners
OB Quantities
H1
H2
Top Success Q4
MCP Breakers via Panel builders*
Circuit Breakers via License partners
30%
Excellent conversion to new generation circuit breakers
11% YoY growth in secondary GIS through distributors
445%
95% growth in secondary GIS through License partners for YTD Mar’22 vs YTD Mar’21
FY 21
FY 22
FY 21
FY 22
Secondary GIS via distributor
Tank via License
Priorities
11%
Price up & cost optimization actions to mitigate Inflation
560%
184
Strengthen distributor network
19
3
FY 21
27
FY 22
*Includes all breakers through partners
Acceptability and approval for License model in market
FY 21
FY 22
All Growth values are year on year percentage
Schneider Electric Infrastructure Limited – Investor Presentation |Page 9
Disciplined execution
s s e r g o r p r e d r O
s s e r g o r p s e a S
l
s s e r g o r p
I
T B E
13,938
11,661
9,649
FY 20
FY 21
FY 22
13,844 12,971
15,342
FY 20
FY 21
FY 22
799
602
172
FY 20
FY 21
FY 22
All Values in MINR
Orders +44%
Sales +18%
EBIT +33%
Actions
Focus on Variation orders
Mitigating Raw material Inflation
Regular review of claim management
Improved Payment terms
Avg DSO -16 Days
Efficient working capital management
NPS : 48.8 (+8)
NSS : 62.6 (+19)
S P N
Overall
Power & Grid
Mining
Contractors
Panel Builders
48,8 (+8,4)
38,5 (-2,1)
30 (-20)
57,1 (+14,8)
100 (+80)
Overall
S S N
62,6
(+19.1)
Select Offer (+3,2) 71,4
Get Quotation 50 (+17.7)
Get Delivered
66,7
(+6,7)
Execute Project (+10,8)
37,5
On-Site
85,2
(+50,8)
NPS – Net Promoter Score, Fig in brackets represent variance vs previous year
NSS – Net Satisfaction Survey, Fig in brackets represent Q1 variance vs previous full year
Schneider Electric Infrastructure Limited – Investor Presentation |Page 10
Financial Update
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 11
Page 11
Orders
+46.0%
5,040
+44.4%
13,938
3,452
9,649
Q4 FY 21
Q4 FY 22
FY 21
FY 22
Good momentum in orders in all segments
Major orders from GE T&D, Bhutan Engg, Mazagon dock, Linxon, Tata Projects
Backlog up 24% vs March 2021
All figures in MINR
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 12
Sales
+37.6%
3,400
2,472
+18.0%
15,303
12,971
Q4 FY 21
Q4 FY 22
FY 21
FY 22
Good momentum in sales
First time, achieved 15000 MINR in one year
Major sales to Bhutan Engg , BSES, GE T&D, Torrent Power, Humboldt Wedag
All figures in MINR
Schneider Electric Infrastructure Limited – Investor Presentation |
Page 13
P&L Statement –Q4 FY’22 Vs Q4 FY’21
Sales
Other Income
Toal Sales
Material Costs
Gross Margin
Employee Costs
Other Expenses
EBITDA
Depreciation
EBITA
Interest
Profit before Exceptional Items
Exceptional Items
Profit after Tax
Q4 FY'22
Q4 FY'21
MINR
3,400
31
3,431
2,439
992
508
284
200
43
157
130
27
26
1
%
0.9%
71.7%
29.2%
14.9%
8.3%
5.9%
1.3%
4.6%
3.8%
0.8%
0.8% 0.0%
MINR
2,472
110
2,582
1,704
878
481
336
62
54
8
113
(106)
7
(113)
%
4.5%
68.9%
35.5%
19.5%
13.6%
2.5%
2.2%
0.3%
4.6%
-4.3%
0.3% -4.6%
YoY (%) Change
37.6%
-6.4pts
5.6%
-15.5%
+3.4pts
-19.6%
+4.3pts
14.9%
+5.1pts
+4.6pts
Material cost is increased due to RMI impact and material shortages
All figures in MINR
Schneider Electric Infrastructure Limited – Investor Presentation | Page 14
P&L Statement –FY’22 Vs FY’21
Sales
Other Income
Toal Sales
Material Costs
Gross Margin
Employee Costs
Other Expenses
EBITDA
Depreciation
EBITA
Interest
Profit before Exceptional Items
Exceptional Items
Profit after Tax
FY 22
FY 21
MINR
15,303
%
MINR
12,971
%
99
2.9%
185
7.5%
YoY (%) Change
18.0%
15,402
10,814
4,588
2,104
1,525
960
173
787
485
302
26
276
70.7%
30.0%
13.7%
10.0%
6.3%
1.1%
5.1%
3.2%
2.0%
0.2% 1.8%
13,157
8,963
4,194
1,847
1,524
823
221
602
482
120
130
(10)
69.1%
32.3%
14.2%
11.7%
6.3%
1.7%
4.6%
3.7%
0.9%
1.0% -0.1%
-2.3pts
13.9%
0.1%
-0.1pts
+0.5pts
0.6%
+1.0pts
+1.9pts
Material cost is increased due to RMI impact and material shortages
All figures in MINR
Schneider Electric Infrastructure Limited – Investor Presentation | Page 15
Schneider Electric Infrastructure Limited – Investor Presentation Schneider Electric Infrastructure Limited – Investor Presentation
16