Schneider Electric Infrastructure Limited has informed the Exchange about Investor Presentation
SEIL/Sec./SE/2020-21/68
February 15, 2021
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 Symbol: SCHNEIDER
The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street MUMBAI 400 001 Fax#022-2272 3121/2037/2039 Scrip Code No. 534139
Sub: Schedule of Investor Conference call on Unaudited Financial Results for 3rd quarter and nine months ended December 31, 2020
Dear Sir,
In continuation to our letter No. SEIL/Sec./SE/2020-21/67 dated February 15, 2021 regarding the above subject, please find enclosed herewith the copy of presentation on the Company’s Unaudited Financial Results for the 3rd quarter and nine months ended December 31, 2020, to be presented in today’s call.
This information will be made available on the Company’s website i.e. www.schneider- infra.in.
We request you to take note of the same.
Yours Sincerely,
For Schneider Electric Infrastructure Limited
Bhumika Sood Company Secretary & Compliance Officer
Encl: As above
Schneider Electric Infrastructure Limited Q3 FY 2020-21 15th Feb 21
Schneider Electric Infrastructure Limited – Investor Presentation
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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
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Market Dynamics
Confidential Property of Schneider Electric |
Page 3
Schneider Electric Infrastructure Limited – Investor Presentation
Economic Recovery Gaining Momentum
GDP1 Forecast - 2021
GFCF2 Forecast- 2021
IIP3 Forecast- 2021
4.1
3.1
GDP real growth (YoY)
GDP Forecast
9.0
-7.5
-7.3
-23.9
GFCF real growth (YoY)
GFCF Forecast
IIP Growth (YoY)
IIP Forecast
-5.2
-6.5
-7.4
12.3
9.9
-1.4
-1.3
-18.1
-4.3
-47.1
-35.6
-5.9
-11.8
Oct- Dec’19
Jan- Mar’20
Apr- Jun’20
Jul- Sep’20
CY20P
CY21P
Oct- Dec’19
Jan- Mar’20
Apr- Jun’20
Jul- Sep’20
CY20P
CY21P
Oct- Dec’19
Jan- Mar’20
Apr- Jun’20
Jul- Sep’20
Sep- Dec’20P
CY20P
CY21P
Real GDP Growth Rate Bottomed out in Apr-Jun’20, recovery faster than expected
Capex Growth Rate Sharp recovery in Jul-Sep’20
• GDP growth expected to turn positive in Oct-Dec’20
• Govt.’s Production linked Incentive scheme to boost
•
• Upward revision in GDP forecasts4
FY21-8.5% v -9.1% || FY22+9.5% v +8.2%
local mfg. in multiple sectors
IIP Actuals Sustained business resumption (Apr-Oct’20)
IIP close to 2019 levels Sep’20 onwards Sep+0.5%; Oct+4.2%, Nov-1.9%
• GFCF ~26% of GDP in Jul-Sep’20 (dipped to 19.5%
• 3 of 8 core sectors showed growth in Nov’20
• Improved Composite Index projections for 2021
in Apr-Jun’20)
Coal, Fertilizers, Electricity
CY21+15.1% v +13.3%
• Strong revival in key indicators
GST collections at all-time high of 1.15 Lakh Cr (+11.6%)
• FDI equity inflows grew 21% (Apr-Oct’20) to 35.3 Bn
USD
1 Gross Domestic Product Projections as per CMIE, and RBI ; growth nos. yoy
2GFCF: Gross Fixed Capital Formation
Schneider Electric Infrastructure Limited – Investor Presentation
3IIP: Index of Industrial Production
4 Source: RBI
4
Market Trends & Growth Drivers
Power & Grid
OGP
MMM
Mobility
• Infrastructure strengthening &
Development – GIS, Digital offer (partnerships, AMI-HES ), SCADA ADMS
• Govt initiatives in Grid Modernization/ Smart Grid /Smart City /Strengthening Distribution Network /Smart Metering
• Increasing growth avenues supported by govt initiatives in renewable power segment. Aim to achieve renewable energy capacity of 227 GW by FY2022
• Govt focus on EV Charging
infrastructure. The Dept of Heavy Industries invited proposals from PSUs (State/Central), state-owned DISCOM, to build and operate Public EV charging infrastructure.
• Privatization of discoms
• Focus on Gas base economy – LNG
terminals and Gas distribution
• Sustainability solutions towards
carbon zero bio fuels – Ethanol 2G and 3G
• Govt focus on strengthening city gas
distribution network
• Open Acreage Licensing Policy
(OLAP) to encourage investment for upstream production
• Govt allowed 100% FDI - natural gas, petroleum products and refineries among others
• Still some negative sentiments in the market due to pandemic situations. Few customers discussing investment plant with consultant
• Massive infrastructure investment in Metro Rails. Focus on city to city connectivity , rapid transit system, rail and road tunnels.
• Mineral laws (amendment) bill is
expected to propel Indian coal and mining sector to specially promote ease of doing business
• Booster dose to infrastructure, roads, defense, water supply and urban development via Additional budget announced by the govt
• liberalized mineral sector paving way for large private investments through auction of nearly 500 leases, aim at doubling production in the next 4-5 years
• Govt Plans to privatize ~ 100 Airport in
next 5 years
• Govt focus on infrastructure & policy to
boost E mobility
• Car Manufacturers struggling due to slow demand recovery, small spike anticipated due to the festive season but 2021 looks challenging
Schneider Electric Infrastructure Limited – Investor Presentation
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FY2021- 22 Segment Budget Allocation – Shift to Capex Expenditure
Total Budget Expenditure
INR lakh Crore
On Capital A/c
34.5 4.4
+1%
34.8 1 5.5
+26%
On Revenue A/c
30.1
29.3
-2.7%
Capex Budget Split by Segments1
100% = 5.5 Lakh crore Capex
CIB, 5.6%
C&SP, 4.8% Finance, 4.7%
Healthcare, 2.8% Power & Grid, 2.1%
Space & Defense, 26.8%
Others, 14.40%
0.02% CPG
14.40%
0.14%
0.08% 0.06%
MMM
O&G
Water
14.10%
Unclassified
Others
Unclassified Includes budgetary support for infrastructure projects across the country, PLI schemes, Make in India promotion Funds etc.
FY21 RE
FY22 BE
Transport, 38.9%
• The overall budget is marginally increased by 1% pt. (FY22 BE vs FY21 RE) i.e., from 34.5 34.8 Lakh Crore • Large portion of budget is shifted from Revenue A/c (Opex, Salaries, Admin and general expenses etc) towards Capital A/c in FY22 • Segments where capex spending has increased in FY22 compared to FY 21 RE
Space + Defence (2.6%) | Transport (7.4%) | Electric Utilities (75%) CIB (122%) | IT&CSP (450%) | Finance (90%)
Segments where spending has decreased compared to RE MMM (-33%) | O&G (-83%) | Healthcare (-18%)
Schneider Electric Infrastructure Limited – Investor Presentation
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1This is calculated basis classification of ministries in various segment categories. BE – Budget Estimates; RE – Revised Estimates
Sector
Investment / Scheme Highlights
•
INR 2.3 Lakh crore investment across road, rail, air & waterways
Transport
• 8.5K km highway projects to be awarded by Mar 2022 (completing 11k km target) • Future ready Railways – Enhanced capex outlay. Dedicated freight corridors • 100% electrification of broad-gauge routes to be completed by December, 2023.
WWW
• Jal Jeevan Mission- Liquid waste management in 500 AMRUT cities – 2.87 Lakh Cr in 5yrs • Urban Swachh Bharat Mission 2.0 – Rs. 1,41,678 crores allocated over 5 years
• Launch reforms-based result-linked DISCOM scheme - 3.05 Lakh crore (5 yrs) • Framework to convert monopoly distribution system to a competitive system • Focus on Prepaid smart metering, Feeder separation and Upgradation of systems • Capital infusion of 1K cr to Solar Energy Corporation of India and 1.5K cr to Indian Renewable
Power & Grid
Energy Development Agency
• Customs duty increase for Solar lamps, inverters
Healthcare
• Atmanirbhar Swasth Bharat Yojana – Rs. 64,180 crores allocated over 6 years
Buildings
• Affordable housing: Tax holiday extended till 31st Mar 2022 for affordable housing project
Impact on SE
• Heavy capex investment in
Transport segment - Metros, rail, ports and Highways
• WWW segment push
• Smart meters • A2E: Prosumer model • P&G segment: Complete overhaul of DISCOMS
• Make in India boost
• Large Healthcare Projects with critical requirements
• To leverage Affordable
housing
• Digital push. • Asset mgt. Services
• O&G segment push
• 1,500 crores financial incentive for promotion of Digital Payments • Digital census – First in history of India – 3,768 Cr
• Ujjwala scheme to be extended for 1 crore more beneficiaries (currently at 8 crore) • Add 100 more districts in next 3 years to the City Gas Distribution network.
C&SP + Digital
O&G
Auto
• Augment Public Bus Infrastructure: 18000 Cr to augment city bus service • PPP model to enable private sector to finance, operate and maintain over 20,000 buses
• Bus depots and MSMEs
could be targeted
Others Schneider Electric Infrastructure Limited – Investor Presentation
• MSME sector booster schemes 15,700 Cr (more than double of last year budget) • Customs duty increase for Transformer parts (bobbin, wires), Li-ion battery parts 1National Infrastructure Pipeline
• Boost OEM channel • Make in India boost
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Our world is more electric, decentralized & Digitized
Simplify & Saturate
One System approach across division
Sell more complete system including software by boosting prescription by segments
Deliver standardized, interoperable architectures with associated prescription tools
Service Ready
Retrofit at Scale
New electrical world with digital enabled offers
Embed natively connected features to unlock our capabilities to sell services
Stay connected to our customer from design to operate
Commercial Transformation
Make the most of our installed base
Ease the digitization of our installed base with plug & play solutions and enrichment of offers
Schneider Electric Infrastructure Limited Investor Presentation
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Success Stories
Schneider Electric Infrastructure Limited – Investor Presentation
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First Greenfield for Nestlé (9th factory)
Customer Nestlé India
Project Name Sanand Factory (Maggi) - Greenfield Expansion (Phase 1)
Customer Challenge
•
• •
Safe, reliable, energy efficient and scalable power distribution solution Continuous monitoring of critical assets Safety risk while doing thermography
Value Propositions
• One Schneider Solution – turnkey SITC for
• •
•
•
•
entire power distribution scope Ester Oil Transformer, MV Switchboard Sandwich Busway with ZERO Epoxy, Green Premium Certified LV Panel, APFC Panel, Earthing, Safety Equipment, Cabling EcoStruxure Asset Advisor for LV Switchboard to ease asset O&M and life expectancy Improved operation & maintenance; no need of thermography
Key Success Factor
• One Schneider approach • Dedicated and continuous engagement
with end-user and project consultant
• Long term consultative, collaborative and value proposition focused key account management methodology
• Ester Oil Transformer and Thermal monitoring as key differentiators to increase greenfield project value
Schneider Electric Infrastructure Limited – Investor Presentation
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Safety Story – Arc Flash Protection
Customer
LafargeHolcim
Project Name Ambuja Cement -Arc Flash Protection
Customer Challenge
• Arc Flash causes- Intense light, burning and blinding radiation , high temperature upto 20,000 K, heated air , pressure and sound waves,, Injury to person through IR and UV Radiation, pressure shock sound shock and Psychological shock, Plant tripping, loss of production
Value Propositions
• Arc Flash Protection in Panels of
competition make using VAMP 321 relay , point sensor, loop sensor making different zones of protection.
• Full EcoStruxure solution. Engineering,
supply, installation, commissioning services;
•
the expenses of an arc flash include the cost of machine repair and loss of service. That can be quite expensive if a machine must be replaced
Key Success Factor
• Continuous engagement with C-level, project and plant teams, during lockdown period where project team held working virtual sessions with customer.
Schneider Electric Infrastructure Limited – Investor Presentation
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Financial Update
Schneider Electric Infrastructure Limited – Investor Presentation
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12
Orders
Quarterly
-51.2%
3,426
1,673
YTD
-28.0%
8,602
MINR
6,197
Q3 FY 20
Q3 FY 21
9M FY 20
9M FY 21
Order booking badly impacted by pandemic situation due to deferment of opportunities finalization
Without de-booking of backlog orders, growth in Q3 -40% & YTD -18.0% vs prior ~ 1100 MINR orders de-booked during the year due to:
Customer side Price Validity expiry Short Closure
Schneider Electric Infrastructure Limited – Investor Presentation
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Sales
Quarterly
-2.0%
4,818
4,723
MINR
YTD
-9.0%
11,533
10,500
Q3 FY 20
Q3 FY 21
9M FY 20
9M FY 21
Q3 sales dropped marginally due to deferment of shipments caused by customer site readiness and liquidity issues.
YTD sales mainly impacted by lock down in Q1 though it partially recovered in Q2.
Sales also impacted due to delay in material availability, restricted physical movement of resources and customer liquidity issues.
Schneider Electric Infrastructure Limited – Investor Presentation
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P&L Statement – Q3 FY’21 Vs Q3 FY’20
Q3 (Oct - Dec 20)
Q3 (Oct - Dec 19)
MINR
%
MINR
%
MINR
YoY (%) Change
-2.0%
SEIL results
Sales
Other income
Total Sales
Material costs
Gross Margin
Employee costs
Other expenses EBITDA
Depreciation
EBITA
Interest
Profit after tax
4,723
19
4,742
3,292
1,450
460
488 502
50
452
119
333
69.7%
30.7%
9.7%
10.3% 10.6%
1.1%
9.6%
2.5%
7.1%
4,818
61
4,879
3,355
1,524
540
502 481
57
423
123
300
69.6%
31.6%
11.2%
10.4% 10.0%
1.2%
8.8%
2.6%
6.2%
-1.9%
-4.8%
-14.9%
-2.9% 4.4%
-12.9%
6.7%
-3.7%
11.0%
Material cost % almost same as last year.
Employee cost reduction due to various structural and tactical actions.
Other expense is down due to savings in traveling, rent, etc. partially offset by forex & bad debts.
Depreciation dropped due to disposal of some assets in Q3, mainly P&M and vehicles.
Other income dropped due to lower collection of provisioned / written off old debt vs last year.
Schneider Electric Infrastructure Limited – Investor Presentation
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P&L Statement – YTD FY’21 Vs YTD FY’20
MINR
SEIL results
Sales
Other income
Total Sales
Material costs
Gross Margin Employee costs
Other expenses
EBITDA Depreciation
EBITA
Interest
Profit before Exceptional items Exceptional
Profit after tax
9M (Apr to Dec 20)
MINR
10,500
75
10,574
7,259
3,315 1,366
1,188
761 167
594
369
226 123
102
%
69.1%
31.6% 13.0%
11.3%
7.2% 1.6%
5.7%
3.5%
2.1% 1.2%
1.0%
9M (Apr to Dec 19) YoY (%) Change %
MINR
11,533
116
11,650
-9.0%
-9.2%
8,220
0.712748
-11.7%
3,429 1,616
1,313
501 165
336
374
-38 -
-38
29.7% 14.0%
11.4%
4.3% 1.4%
2.9%
3.2%
-0.3% 0.0%
-0.3%
-3.3% -15.4%
-9.5%
52.0% 1.1%
77.0%
-1.5%
-689.4%
-367.6%
Material cost % improved with better sales mix (higher transactional, services & transformers).
Employee cost reduction due to various structural and tactical actions.
Other expense is lower due to savings in traveling & forex partially offset by freight, one off & bad debt.
Other income dropped due to lower collection of provisioned / written off old debt vs last year.
Exceptional is employee severance pay as per approved restructuring plan.
Schneider Electric Infrastructure Limited – Investor Presentation
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Schneider Electric Infrastructure Limited – Investor Presentation Schneider Electric Infrastructure Limited – Investor Presentation
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