BBOX

Telephone: +91 22 6661 7272 | Email: marketing.india@blackbox.com BBOX/SD/SE/2022/16 February 12, 2022 Corporate Relationship Department Corporate Relationship Department Bombay Stock Exchange Limited National Stock Exchange Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Fort, Mumbai 400001 Bandra East, Mumbai 400051 Subject: Investor Presentation on Financial Results (Standalone and Consolidated) of the Company for the quarter/period ended December 31, 2021 Ref: Black Box Limited (Formerly AGC Networks Limited) – Scrip Code: 500463 NSE Symbol: BBOX Dear Sir/Madam, Please find attached herewith Investor Presentation on the Unaudited Financial Results of the Company (Standalone and Consolidated) for the quarter/period ended December 31, 2021. This is for your information, record and necessary dissemination to all the stakeholders. Thanking You, For Black Box Limited (Formerly Known as AGC Networks Limited) Aditya Goswami Company Secretary & Compliance Officer Encl.: A/a. BLACK BOX LIMITED (Formerly AGC Networks Limited) Registered Office: 501, 5th Floor, Building No. 9, Airoli Knowledge Park, MIDC Industrial Area, Airoli, Navi Mumbai 400 708, India BLACKBOX.COM | CIN: L32200MH1986PLC040652 | Tel: +91 22 6661 7272 Black Box Ltd. INVESTOR PRESENTATION Q3 & 9MFY22 TRANSFORM SUSTAIN & GROW SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by AGC Networks Ltd (the “Company”), have been prepared solely for information purposes and do 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 whatsoever. 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. This presentation contains certain forward-looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward- looking statements become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the Company. 2 The integration of the erstwhile NASDAQ listed Black Box Corporation & AGC is now Networks which began in 2019 is now complete ONE NAME. ONE BRAND. ONE LANGUAGE Today, we are bigger and better — with a combined workforce of 3,500 highly skilled and talented professionals who have helped us to... Expand Global Expand Expand Solution Expand our Customer Base Capabilities Offerings Global Reach 3 Q3 & 9MFY22 HIGHLIGHTS TRANSFORM SUSTAIN& GROW 4 Q3 & 9MFY22 HIGHLIGHTS Q3 9M In Rs. Crores 1,345 1,387 3,928 1,241 3,453 ▪ Continuedgrowthmomentumwithstrongquarterlyrevenues ▪ The Growth in revenue on account of strong order book Revenue reflected in new customer signings each quarter Q3FY21* Q2FY22 Q3FY22 9MFY21* 9MFY22 ▪ EBITDA margin declined on YoY basis owingto a) Inflationary pressure on overall labour cost including Margin 7.8% 4.1% 4.9% 7.5% 4.6% contingent workforceand 96 b) Increase in procurement cost due to supply chain 258 EBITDA 68 challenges and component shortages 55 181 ▪ However, we have been able to take additional measures to optimize the costs & as a result, our EBITDA margins have increased by 80 bps on a sequential basis Q3FY21* Q2FY22 Q3FY22 9MFY21* 9MFY22 37 77 57 ▪ Significant reduction in finance cost on YoY basis PAT 15 10 Q3FY21* Q2FY22 Q3FY22 9MFY21* 9MFY22 *Normalised for impact of restatement 5 ROBUST BALANCE SHEET Total Borrowings Net-Worth In Rs. Crores In Rs. Crores 462 263 1 57 207 (286) 188 216 176 40 117 78 Mar-20 Repayment Mar-21 Addition Dec-21 176 Mar-20 Profit for OCI Warrants Mar-21 Profit for OCI Dec-21 the year Subscription the year Money ▪ Additional debt drawn in Q3FY22 to fulfil working capital requirements ▪ As on 31st March 2021 Promoters have paid Rs. 188 crores against warrants subscription money ▪ Amount to be received from Promoters in near future against subscription of warrants Rs. 37 Crores As on 31st December 2021, company had cash and cash equivalents of Rs. 299 Crores 6 MANAGEMENT COMMENTARY Commenting on the results and performance Mr. Sanjeev Verma, Whole Time Director, Black Box said, “For 9MFY22 we have delivered ~14% revenue growth on the back of healthy order book and strong execution capabilities of the company. Over the last 9 months, we have won orders in excess of US$ 600 mn, which is a testimony of our capabilities and the trust that our customers enforce in us. Our focus continues to be on client-mining to tap into cross-sell and upsell opportunities to the current customers. We believe, we are on the right path and are confident of delivering an improved performance on a quarterly basis.” Mr. Deepak Kumar Bansal, Executive Director and Chief Financial Officer of Black Box, commented, “We continued to adhere to strict control over costs which has allowed us to improve our consolidated EBITDA margins on a sequential basis, this is despite the continued inflationary cost pressures and supply chain challenges witnessed by the company and industry. We continue to maintain sufficient liquidity to maintain growth momentum and operations of the company.” 7 DEAL WINS DURING THE QUARTER Transaction Value Clients $8.1 Mn DataCenterand In-Building5G/OnGosolutionsforan American multinational technology conglomerate $2.3 Mn ConnectedBuilding & UnifiedCommunicationsolutions forone of the largest, and mostdiverse correctional departments in the US $2.1 Mn MaintenancecontractandDigital Workplacesolutionsforone of the world's largest shipping couriers $1.7 Mn Digital Workplace solutionsforan American diversified transportation services company $1.4 Mn ControlRoomset up for a Dutch defense organization $1.3 Mn EnterpriseNetworkingsolutionsforan IT services management company $0.8 Mn UnifiedCommunicationsolutionsforan Indian multinational IT conglomerate $0.7 Mn UnifiedCommunicationsolutionsforglobal professional services firm $0.6 Mn SecureKVMsolutionsfora leading provider of IT infrastructure solutions in Europe 8 Q3 & 9MFY22 – CONSOLIDATED P&L Particulars (Rs. Crs. ) Q3FY22 Q3FY21 Q2FY22 9MFY22 9MFY21 Restated Restated Revenuefrom Operations 1,387 1,241 1,345 3,928 3,453 Gross Profit 396 389 383 1,133 1,096 Gross Profit Margin 28.6% 31.4% 28.4% 28.9% 31.7% Gain on foreign currency transaction (net) (2) 2 (1) 1 9 Total Other Expenses 326 295 327 953 846 EBITDA 68 96 55 181 258 EBITDA Margin 4.9% 7.8% 4.1% 4.6% 7.5% Other Income 2 1 0 7 9 Depreciation (as per IND AS 116) 25 19 25 74 67 Depreciation (as per business) 12 4 12 34 17 EBIT 45 78 31 114 201 EBIT Margin 3.3% 6.3% 2.3% 2.9% 5.8% Finance Cost (as per IND AS 116) 18 22 16 49 74 Finance Cost (as per business) 14 19 13 40 64 Loss / (gain) on fair value of financial liabiltiy 0 (10) 0 0 (18) Gain on settlement of financial liability 0 0 0 14 0 Exceptional Item Gain/(Loss) (9) (3) (3) (15) (22) Profit before Tax 19 42 11 63 86 PBT Margin 1.3% 3.4% 0.8% 1.6% 2.5% Tax 3 5 1 6 10 PAT 15 37 10 57 77 PAT Margin % 1.1% 3.0% 0.8% 1.5% 2.2% Other Comprehensive Income 8 17 (10) (3) 41 Total Comprehensive Income 23 54 1 54 118 TCI Margin % 1.7% 4.3% 0.0% 1.4% 3.4% Basic EPS 4.71 12.35* 3.23 17.47 25.73* *Normalised for impact of restatement 9 MEDIUM TERM TARGETS TRANSFORM SUSTAIN& GROW 10 MEDIUM-TERM TARGETS Growth Drivers FY20 FY21 FY23 REVENUE 4,994 4,674 7,000 to 7,500 ✓ Increasing market (Rs. Crs) penetration + Addition of new clients Normalised ✓ Optimize operational EBITDA Margin 6.6% 7.5% 9.0% - 10.0% efficiencies (%) ✓ Optimizing operating costs PBT Margin -1.5% 2.1% 6.0% - 6.5% (%) 11 BUSINESS OVERVIEW TRANSFORM SUSTAIN& GROW 12 SNAPSHOT Who Are We Black Box® is a trusted IT solutions provider delivering cutting-edge technology solutions and Rs 4,674 Crores 8,000+ 100+ world-class consulting services to businesses around theglobe FY21 Revenue Global Customers Fortune 500 Companies What We Do 75 We deliver technology solutions for our customers 30+ by harnessing technology innovation to digitally Delivery and support 3,500+ transform and accelerate their business in the areas Global Technology Centres Across 6 of connected buildings & IoT, digital workplace & Employees Globally Partnerships Regions customer experience, data center & edge networks, wireless & mobility (including 5G) and cyber security We also sell and distribute technology infrastructure products to enhance customer experience through 2,500+ 30+ online web, distributors, integration partners and 4,000+ Technical value-added resellers Presence in Technical Resources Countries Certifications 13 OUR JOURNEY FROM LOCAL TO GLOCAL 1986 1994 - 2004 2010 2011 2014-2018 2019 2020 2021 & Beyond Appointed AT&T’s SI In India Rechristened and AGC goes Global AGC amplifies Expanding Global Tuck-in acquisitions Strategy to Transform, Incepted as Reimagined Customer centricity Presence Sustain & Grow Tata Telecom Ltd. -AT&T’s -Lucent spins off Expansions in-to AGC completes Enterprise business as Acquired & North America, through M3 approach AGC completes acquisitions of AGC renamed as Avaya Renamed as AGC MEA & ANZ -Multi Solutions acquisitions of Black Fujisoft, Pyrios& ‘Black Box Ltd.’ -Tata-Avaya JV takes shape Networks Ltd -Multi Alliances Box in US getting Mobiquestin MEA, Growing the Global -Avaya buys TTL stake, -Multi Geos scale ANZ Organization: One Name, forms Avaya Global One Brand, One Language Connect Building End to End Capabilities Creating Global Footprint Differentiation ✓ Focus on new and relevant technology areas ✓ 30+ countries presence and expansion in ✓ Consultative/ Value Proposition based key customer markets sales approach ✓ Focus on integrating and delivering multiple technology solutions & services ✓ Driving Process Excellence & Optimizing ✓ Vertical focused services & solutions Resource Productivity ✓ Global center of excellence and delivery Reputation Building Expansion Consolidation Profitable Growth 14 OUR BOARD OF DIRECTORS Neha Nagpal Sanjeev Verma Sujay Sheth Independent Director Whole time Director Chairman – Independent Director Experience: 13 years Experience: 24 years Experience: 25 years Deepak Kumar Bansal Dilip Thakkar Anshuman Ruia Executive Director & Independent Director Executive Director Global CFO Experience: 24 years Experience: 54 years Experience: 30 years Mahua Mukherjee Naresh Kothari Executive Director Non-Executive Director Experience: 22 years Experience: 25 years 15 OUR MANAGEMENT TEAM Sanjeev Verma Deepak Kumar Bansal Rick Gannon President Executive Director & Head of GSI Business Global CFO Experience: 24 years Experience: 24 years Experience: 20 years Todd Oseth Lisa Davidson Mahua Mukherjee Senior VP, GM, Technology Head of HR North America Head of HR APAC, India & Product Solution & Europe MEA Business Experience: 30+ years Experience: 16 years Experience: 22 years Bikram Sahoo Mike Carney Khiro Mishra CTO Head of Corporate Global Head – Cybersecurity Development Experience: 24 years Experience: 18 years Experience: 20+ years 16 IMPROVING FINANCIAL FLEXIBILITY Promoter Funding Balance Sheet Strength Credit Rating • Promoters infusing equity • CRISIL has assigned BBB/Stable • Transformation at Black box has through warrants: Rs.225 Crores rating (Investment Grade) to the improvedthefinancialstrength atRs.675perWarrant long-term facilities and CRISIL • Promoter funding to help in A3+forshort-termfacilities • Money will be used to meet the increasing the net worth further growth requirements of the • Ratings reflect upon healthy andreducetheliabilities company, reduction in liabilities business risk profile, driven by andgeneralcorporatepurposes • Cash & Cash equivalents as on the established market position 31stDec’21:Rs.299Crores and the improving profitability & • Rs.188CroresreceivedinQ4FY21 cashflowsofthecompany assubscriptionamount The Financial Flexibility will help to: • Improve business offerings and acquire larger customers • Extend business within existing markets to build scale and size • Faster growth through inorganic acquisitions 17 INORGANIC STRATEGY TRANSFORM SUSTAIN& GROW 18 INORGANIC GROWTH STRATEGY Identify Businesses that provides expansion through scale and revenues currently operating with sub-optimal margin profile ✓ Capability expansion in areas like Cloud, Data center, Cyber Security, IOT ✓ Geographic expansion within US and Europe and APAC Complementary to existing business ✓ Scale up existing businesses ✓ Acquire new customers Strategy ✓ Diversify to newer geographic locations ✓ Acquire capabilities in newer delivery verticals and solutions Transform the acquired entities ✓ Execute short term synergies ✓ Identify and implement mid-term transformation opportunities ✓ Exit non-strategic, low margin revenue segments ✓ Simplify capital, financial and tax structure 19 ACQUISITION HISTORY Company Acquired Rationale Strategic Objectives fulfilled ▪ Expands offerings, scale, and Geographic reach to Service Global Black Box Corporation Enterprise Clients ▪ Increased combined revenues of the Company by over$600mn ▪ Increase and strengthen Company’s presence and offerings in the Pyrios Pty Ltd (Australia) Australia and NewZealand market Pyrios Pty Ltd (New Zealand) ▪ Enhance the current solution portfolio the Company in the Unified Communications and Contact center space and Cloud services ✓ Business that provides expansion ▪ Establish and scale presence in Middle East region through scale and revenues currently ▪ Enhance the current solution portfolio across Cloud Computing & operating with sub-optimal margin Virtualization, Cyber Security, Managed SoC & NoC, Managed profile Fujisoft Technologies UAE Services, Data Center and Collaboration solutions ✓ Complementary toexisting business ▪ Opportunity to cross sell between the current customers of Black Box and the acquired Companies ✓ Transform the acquired entities ▪ Custom application development to enable clients to manage data integration with legacy systems ▪ Digitized and automated processes and workflows to monitor and manage key performance indicators (KPIs) to improve visibility and Mobiquest (Singapore) boost operational efficiency ▪ Digital transformation services with end-to-end lifecycle management of software applications with application services through technologies such as RPA, blockchain, AI/Ml and IoT 20 BLACK BOX STRENGTHENS FOOTHOLD IN CYBER SECURITY CAPABILITIES Black Box Technologies Australia Pty Limited, Indirect Wholly-Owned Subsidiary of Black Box (erstwhile AGC Networks Ltd.), has acquired 100% of shares of Dragonfly Technologies Pty Ltd. in February 2022 Overview Rationale Consideration Financials ▪ The said acquisition of will help the ▪ A total consideration of ~AUD 7.43 ▪ Dragonfly Technologies Australia Pty ▪ Consolidated Turnover: Company to strengthen its presence Mn, payable 50% at the time of Ltd. provides a wide range of ✓ FY21: ~AUD 4.24 Mn in Australia and also add closing and remaining 50% on solutions/Service Offerings largely ✓ FY20: ~AUD 2.79 Mn cybersecurity capabilities to offer performance based earn-outs over classified into Cyber Security, ✓ FY19: ~AUD 2.82 Mn wider range of services to our a period of 3 years fromclosing. Enterprise Networking, Automation (12 months ending June) customers. This will also give rise to and Consulting Services an opportunity to cross sell to the current customers. 21 IMPROVED SERVICE OFFERINGS and SCALE VIA ACQUISITION OF BLACK BOX Focus on Global Solutions Integration (GSI) + Technology Product Solutions Focus on Global Solutions Integration Business (GSI) business (TPS) Unified Communications & Collaboration Connected Buildings 5G / Wireless Data Center & Edge IT Signal Switching & Cyber Security Visualization Digital Transformation & IoT & Networking Applications Combined FY21 Revenues of Rs.4,674 Crs Managed Services Infrastructure & Connectivity 22 BLACK BOX TRANSFORMATION SINCE ACQUISITION Revenue#(in Mn $) & Gross Margins Adjusted#EBITDA (in Mn $) & EBITDA Margins 27.7% 27.6% 26.7% 28.1% 30.0% 29.9% 29.3% 30.1% 4.5% 5.4% 6.4% 7.0% 5.0% 7.1% 7.0% 6.1% Covid-19 impact Covid-19 impact $144 $148 $146 $136 $146 $157 $150 $9.3 $9.6 $10.4 $11.0 $9.2 $118 $8.0 $6.4 $5.9 Q1FY20* Q2FY20* Q3FY20* Q4FY20* Q1FY21* Q2FY21* Q3FY21* Q4FY21 Q1FY20 Q2FY20* Q3FY20* Q4FY20* Q1FY21* Q2FY21* Q3FY21* Q4FY21 Rationalized Resources Regionally Facility Optimization ▪ Contributed to improved Gross Profit and EBITDA ▪ Underutilized spaces being negotiated including consolidation of spaces in North America and Europe Reduced Statutory Costs Reduced Admin Costs ▪ Transition from Public to Private Company implicitly ▪ Reduced costs on account of improved policies on reduces costs Outside service costs, travel etc. Procurement Costs Reduced IT and Communication Costs ▪ Reduced procurement costs for products services including ▪ Reductions in carrier costs, improved IT systems, overseas conversion of Sub-contractor labour to lower cost employees help desk, etc. Insurance Costs ERP Consolidation ▪ Significant improvement in Insurance costs including ▪ Integration of legacy ERP instances into SAP, Salesforce CRM, reduction in retentions ServiceNow and others #as per USGAAP Since AGC’s Acquisition in Early 2019, Black Box has Stabilized Revenue and Gross Margins & Adjusted EBITDA has grown over the quarters *Restated 23 THINK GLOBAL – ACT LOCAL Our strategy is to be ‘GLOCAL’ by delivering solutions to a client locally wherever they are! Across 6 Regions and 30+ Countries… Ireland Employees India 709 Asia Pacific 191 MEA 113 Sales 652 Europe 306 Services & Delivery 2,215 Latin America 144 Support 628 North America 2,032 Total Headcount 3,495 24 Data as on 31stDecember 2021 Total Headcount 3,495 24 ORGANIC GROWTH OPPORTUNITIES Investment in talent acquisition Investment in refreshing the sales team, Cloud based Offerings hiring of partner managers and solution Launching of new cloud-based offerings architects for new offerings 05 01 Focus on Organic Growth Cross Selling Data Center Opportunities Increased focus on cross-selling opportunities 04 02 between Solution Integration and Technology Investment in data center practice Product divisions 03 Global Deployment Opportunities Investment to tap global deployment opportunities with US based clients and relevant partnerships with OEMs 25 OUR ENDEAVOR Technology Consulting Global SI/IT ICT Solution Value Added Product Distributors Companies Services Integrators Resellers Companies Our endeavor is to be leading Technology Solution Integrator Gross Margin Gross Margin Gross Margin Gross Margin Gross Margin Gross Margin 50%+ 40-50% 30-40% 20-30% 10-20% 5-10% Black Box has Gross Margins In range of 28-32% 26 WAY FORWARD Manage Organizational Improve Operational Risks and Compliance Efficiencies Adherence Increase Market Deliver Return on Penetration Technology Investments Accelerate Revenue Optimize Operating Costs Growth To become a Leading IT Solution Partner for Global Clients 27 INDUSTRY OVERVIEW TRANSFORM SUSTAIN& GROW 28 DEFINED BY TECHNOLOGY Spending on communications services -Unified Communications technology reached $1.4 tr in 2020 The Global Manage Services market is expected to grow from USD 223.0 bn in 2020 to USD 329.1 bn by 2025 at a CAGR of 8.1% 3X Growth in Hybrid Cloud Adoption by enterprises APAC offers new opportunities in MSP’s. SME’s are Global IT spending is projected to total $4 adopting managed services at a faster rate as compared trillion in 2021, an increase of 3.7% TODAY to large enterprises Existing tech is redefining business operations, making it more customer-oriented Emerging tech will be disruptive. Delivering experiences on the 92% of companies have experienced commercial customer’s fingertips will be vital consequences due to data breach TOMORROW 89% of companies compete primarily on basis of The Cloud Manage Services market is projected to reach customer experience a market size of USD 116.2 bn by 2025, growing at CAGR of 13.3% $96Bn UCaaS Market size is forecast to reach USD 96.0 billion by 2023 Digital initiatives and partnership among the globe and local 86% of consumers are willing to pay more for an upgraded experience playersare expected to boost the overall market growth Source: Gartner, PR-Newswire 29 GROWTH DRIVERS Based on various sources such as Gartner, GMM Insights etc below are the management estimates Industry Size (USD Bn) Drivers Unified Communications 8% 51 and Collaboration ▪ Widespread global network of 4G connectivity 30 ▪ Ongoing investments for early commercialization of 5G networks 2019 2026 Edged Data Center ▪ Increasing adoption of smartphones and rising internet penetration 23% 23 ▪ Introduction of 5G smartphones by global players, resulting in an increased demand for advanced facilities for enhancing data traffic management 6 ▪ Rising trend of IoT devices, compelling service providers to place facilities closer 2019 2026 to the network edge Cyber Security 10% 335 ▪ Need for timely support and professional assistance to aid the growth 157 ▪ Rising trend of employing third-party vendors owing to their robust solutions offered at optimum costs 2019 2027 Digital Transformation 23% 3,294 ▪ Growing adoption of AI & robotics in manufacturing industries ▪ Increasing adoption of Internet of Things (IoT) in different industry verticals 965 ▪ Government initiatives & policies towards digitization in developing nations ▪ Demand for streamlining business processes and the adoption of 5G technology 2019 2025 30 BUSINESS OVERVIEW TRANSFORM SUSTAIN& GROW 31 PRODUCT SOLUTIONS & SERVICES OFFERINGS Global Solutions Integration Business (GSI) Technology Product Solutions (TPS) Delivers digital transformation solutions that helps to design, Markets, sells, and distributes IT infrastructure products deploy, manage and strategize IT operations primarily through distributors and system integrators Digital Infrastructure IoT Unified Communications & Collaboration (UCC) and Signal Switching & Visualization Customer Experience Mobility and 5G Networking Maintenance & Managed Infrastructure and Connectivity Services Well Diversified Financial Services Business Services Healthcare Manufacturing Retail Technology Distributors across Industries 32 KEY PILLARS IN GSI PORTFOLIO Connected Buildings Digital Workplace Customer Experience Solutions Global Multisite Deployments Premise & Hybrid UC&C Contact Center Structured Cabling Managed UCaaS(Cloud) Self-Service/Automation Digital Transformation Implementation Premise to Cloud Upgrade Application Integration Deployment of IoT Devices Carrier Services Analytics In-Buildings 5G / OnGo Edge Networking & Data Centers Cyber Security Enabling Technology 4G to 5G Upgrade Core Networking Incident & Event Monitoring 5G and Public Safety DAS Wi-Fi 6 Endpoint Detection & Response OnGoNetworking SD-WAN & Connectivity VPN & Firewall RTLS Physical Implementation Governance & Assessments Services Delivery Models Professional (Consult, Assess, Design, Project Management) & Field (On-Site, Deploy) Support (Monitoring (NoC& SoC), Incidents, Remote Activities), Managed Services (XaaS, Custom) 33 DIGITAL INFRASTRUCTURE Solution Overview Professional, managed and support services including strategy, Contact Center Infrastructure Upgrade for an assessment, capacity planning, consulting, design, performance analysis Indian Logistics Company and implementation for infrastructure deployments, modernizations, The Client: Our client is an Indian Logistics Company providing courier and active management delivery services & has a subsidiary cargo airline that operates in South Asian Provides the ability for organization to achieve the most out of existing countries infrastructure as well as design, plan and deploy next generation The Challenge infrastructure The client decided to upgrade their existing Contact Center technology that was obsolete and move on to a robust optimized architecture so as to ensure maximum uptime Capabilities The Solution Black Box explained the merits of a centralized set-up vis-à-vis the existing de-centralized set-up & ensured optimization on the design by leveraging their existing infrastructure to the maximum. This involved complete Data Center Networking, Contact Center consolidation with back-office transformation on soft- Infrastructure Internet-of-Things Wireless & Fiber phones. Black Box’s Professional Services were a part of this deal which showcased Black Box’s capability as a true Solution Integrator Benefits Afuture-ready solution with low.Total Cost of Ownership and high uptime Integrated Communication Cabling Site Builds Security Solutions 34 UNIFIED COMMUNICATIONS & COLLABORATION (UCC) Solution Overview Comprehensive solutions to transform, migrate, and integrate unified Seamless Migration for Voice Technology Service communication and collaboration platforms The Client: This healthcare provider, known worldwide for its excellence in clinical care, was given the highest recognition and national rankings in six Supports real-time engagement by integrating voice, video, data, specialtiesrangingfrom cardiology/heartsurgery toneurology/neurosurgery messaging, conferencing and mobility technologies The Challenge The client was utilizing PRI, an outdated voice technology service that lacks redundancy and scalability. In addition, the client’s current service provider Capabilities (as well as others) were phasing out legacy PRIservices in the region The Solution Black Box provided an up-to-date voice technology service delivering 2,000 SIP call paths over a redundant MPLS network. The on-site Black Box Voice / Unified Computer Telephony technical team enabled a seamless migration from the old to the new Web Chat Messaging Integration system Benefits The new centralized SIP service gave the client flexibility and scalability to add capacity as needed and redundancy with failover between circuits. Best of all, itreduced the client’s voice technology service costs by nearly 30%. Presence Mobility Audio Video 35 MOBILITY and 5G Solution Overview Enterprise WiFi, distributed antenna systems (DAS) / small-cell design, Ubiquitous, 5G-Ready Wireless Coverage deployment and management to enable connectivity in challenging locations from high-rises to buildings with large footprints and below ground features The Client: This large, university-based healthcare system cares for tens of thousands of patients a year. It is world renowned for its neuroscience, cancerresearchandtreatment capabilities Establish in-building wireless DAS, called InterWireless 4G The Challenge The client needs to provide mission-critical cellular coverage in multiple existing and new buildings across its very large campus. The wireless Capabilities coverageis designed for use by physicians, staff, patients, and visitors The Solution / Black Box has, so far, designed and installed the CommScope IONEra Digital Distributed Antenna (DAS) System with more than 500 universal access Distributed Antenna Wireless / LTE WiFi points (UAPs) in nine buildings across the campus Systems Benefits Future-ready and 5G capable, the DAS system provides ubiquitous, multioperator, in-building wireless coverage to support physician/staff communications and patient/visitor satisfaction Managed Mobile Mobile Device Services Management 36 MAINTENANCE & MANAGED SERVICES Solution Overview Value proposition covers the full lifecycle of IT services – from procurement of Global 24/7/365 Managed Services technologyto configuration,design, implementation and management of complex environments Standardized set of offeringsfor ondemandrequirements,day2 support,projects The Client: The client is a widely known multinational company and pioneer and managed edge services with ability to be bundled or à la carte to address the in communications and computing technologies. Black Box partnered with a uniqueneedsofeachcustomer global information technology services and consulting company on the project Team of off-site and on-site technicians capable of providing 24x7x365 support The Challenge from break-fix to complex management, deployment, and integration. Providing 4 The client needed a single managed services provider with global reach as hourresponsetime well as local expertise to provide uniform, consistent IT services at its many locations spanning North and Latin America Capabilities The Solution The 24x7x365 solution involves more than 150 on-site staffers at14 of the client’s locations. Services include LAN/ WAN support, equipment installation and management, plus structured cabling in offices, data centers, and manufacturing facilities. deal which showcased Black Box’s Asset Lifecycle Desktop & Application capability as a true Solution Integrator Management Management Service Desk Benefits With outsourced managed services, the client now benefits from consistency, uniformity, and services optimization across all its information technology disciplines and at all of its locations Digital Enterprise Mobility IT Staffing Engagement 37 TECHNOLOGY PRODUCT SOLUTIONS TPS provides connectivity that enables businesses to better visualize and analyse information ✓ Strong brand awareness with 40+ years of history with sizable installed base ✓ We are a market leader in control room designs and deployments with reputation for being the best at complex signals and challenging environments Our Role Distributors R&D / IP White Labelling Value Added Resellers Marketing Selling Web Retailers End Consumers System Integrators Distribute Technical Support IT infrastructure products under ‘Black Box’ brand 38 TECHNOLOGY PRODUCT SOLUTIONS PORTFOLIO Signal Switching & Infrastructure & IoT & Networking Visualization Connectivity KVM IoT Cable IoT Gateways Copper (Bulk / Patch) High Performance Data Acquisition Units Custom (Copper / Fiber) Desktop IoT Sensors (wired/wireless) Fiber (Bulk / Patch) KVM Manager M2M Secure VPN Routers AOC / DAC Cloud Monitoring & Analytics Platform AV Cables AV (Audio Visual) Networking Infrastructure Video Distribution Ethernet Switches (Commercial / Industrial) Freestanding Cabinets/Racks Video Processing Media Converters (Commercial / Industrial) Wallmount Cabinets Digital Signage USB-C (Docks / Hubs / Kits) Climate Cabinets & Cooling Control Systems PoE Injectors / Extenders Cabinet / Rack Accessories Room Scheduling Console Servers Power Protection / Distribution Scalers/Converters 39 ENTRENCHED CUSTOMER RELATIONSHIP Stable Long Tenure of Relationship* 14% 21% 28% 30% 35% Tech Companies Hospitals Manufacturers Utility Co. 22.0 21.4 21.4 10.5 7.4 Retailers Hotels Banks Broadcast Co. FY14 FY17 FY20 FY21 9MFY22 Revenue Contribution *Top10 Clients –Weighted Average No. of Years 41 WELL DIVERSIFIED GLOBAL BUSINESS MODEL – 9MFY22 Revenue by Geography Revenue by Industry Financial Services, India, 6% Others, 19% 22% Europe, 12% MEA, 3% Retail, 7% APAC, 8% Business North America, 70% Technology, 13% Services, 12% Latin America, 1% Manufacturing, 5% Distributors, 9% Healthcare, 13% Client Concentration - Revenue Client-wise Contracts – Revenue* 71% 63% Rs. 50 7 Clients Crores+ 54% 47% 21 Clients 42% Rs. 25 –50 Crores 35% 111 Clients Rs. 5 –25 Crores 8,000+ Clients Up to Rs. 5 Crores Top 10 Top20 Top 30 Top 50 Top 100 Top 200 *As on FY21 43 ORGANIZATION SIZED TO SCALE GROWTH Black Box Skills Across TalentAcquisition: Digital Workflow 4,639 Ratio-centric manpower including sales, delivery and services team – capable and technically competent to Connected Building 898 achieve growth Data Center 770 Dedicated talent acquisition team focusing on high quality hires across functions globally Edge Network 518 Focus on newer and future ready technology Customer Experience 510 capabilities (Call Center) Multi-skilled Solution Architect 205 Investment in refreshing the sales team and hiring of Cyber Security 84 partner managers Product Engg. / R&D 50 Training& Development: 5G Mobility 48 Building the organizational capability level with Enterprise CRM / Business 56 requisite training Applications Core & new skill up-gradation to enhance business prospects Investment to hire sales resource continue Various Certifications by OEMs 44 HISTORICAL FINANCIAL HIGHLIGHTS TRANSFORM SUSTAIN& GROW 45 IMPROVING FINANCIALS OVER LAST 4 YEARS Particulars (Rs. Crs. ) FY18 FY19 FY20* FY21 9M FY22 Revenuefrom Operations 733 1,853 4,994 4,674 3,928 Gross Profit 204 496 1,521 1,497 1,133 Gross Profit Margin 27.8% 26.8% 30.4% 32.0% 28.9% Total Other Expenses 170 450 1,192 1,145 952 EBITDA 33 47 328 352 181 EBITDA Margin 4.5% 2.5% 6.6% 7.5% 4.6% Other Income 5 6 7 11 7 Depreciation (as per IND AS 116) 8 15 92 96 74 Depreciation (as per business) 8 15 41 33 34 EBIT 30 38 244 267 114 EBIT Margin 4.1% 2.1% 4.9% 5.7% 2.9% Finance Cost (as per IND AS 116) 25 45 132 98 49 Finance Cost (as per business) 25 45 123 86 40 Change in Fair value of warrant liability - - (37) (42) 0 Amortization of debt issuance cost - - (23) - 14 Exceptional Item Gain/ Loss 14 (73) (125) (32) (15) Profit before Tax 19 (79) (73) 96 63 PBT Margin 2.6% -4.3% -1.5% 2.1% 1.6% Tax 4 (1) 7 18 6 PAT 15 (79) (80) 78 57 PAT Margin % 2.0% -4.3% -1.6% 1.7% 1.5% Basic EPS (in Rs.) 5.15 (26.97) (26.89) 26.05 17.47 *Restated 46 CONSOLIDATED BALANCE SHEET Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Sep-21 Particulars (Rs in Cr) Mar-18 Mar-19 Mar-20* Mar-21 Sep-21 EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant And Equipment 23 156 164 164 177 Equity Share Capital 28 30 30 33 33 Right Of Use Asset - 0 116 146 145 Other Equity 62 (11) (206) 174 207 Goodwill 84 205 234 269 271 Total Equity 90 19 (176) 207 240 Other Intangible Assets 7 38 43 43 32 Non-Current Liabilities Borrowing 20 587 15 119 151 Financial Assets 7 11 25 28 35 Lease Liabilities - 2 65 94 96 Deferred tax assets 60 95 93 67 61 Other Financial Liabilities 5 2 157 87 105 Other Non-Current Assets 5 29 84 31 30 Other Non-Current Liabilities 12 47 63 25 45 Total Non-Current Assets 184 535 759 749 751 Provisions 11 117 197 85 86 Sub-Total -Non-Current Liabilities 47 755 499 410 483 Current Assets Current Liabilities Inventories 31 151 137 149 208 Borrowing 118 207 242 57 28 Trade Receivables 208 862 361 240 303 Trade Payables 139 551 548 516 697 Cash And Cash Equivalents 12 263 369 410 221 Lease Liabilities - 2 68 58 56 Other Financial Liabilities 46 275 569 373 182 Financial Assets 42 99 405 533 629 Other Current Liabilities 137 490 472 564 574 Other Current Assets 104 522 275 223 287 Provisions 4 133 85 119 140 Sub-Total -Current Assets 396 1,897 1,547 1,554 1,648 Sub-Total -Current Liabilities 444 1,658 1,983 1,686 1,677 Total -Assets 580 2,432 2,306 2,303 2,399 Total -Equity And Liabilities 580 2,432 2,306 2,303 2,399 *Restated 47 SUMMARY OF CONSOLIDATED CASH FLOWS Particulars (Rs in Cr) FY20* FY21 H1 FY22 Operating profit before working capital changes 346 329 118 Changes in working capital 817 35 (140) Cash generated from operations 1,163 364 (22) Direct taxes paid (net of refund) (26) 49 28 Net Cash from Operating Activities (A) 1,137 412 6 Net Cash from Investing Activities (B) (328) (131) (65) Net Cash from Financing Activities (C) (645) (288) (57) Net Change in cash and cash equivalents 164 (6) (117) Cash and cash equivalents at the beginning of the year 206 316 357 Cash and cash equivalents at the end of the year 316 357 211 *Restated 48 DISCLOSURE OF FINANCIAL RESTATEMENT A ▪ Duringthefinancialyear2018-19,BBX,step-downsubsidiaryofHoldingCompany,hadenteredintoacreditagreementwithPathlightCapitalFundLLP(the ‘lender’)toavailcreditfacilityamountingtoRs.692.57Crores(USD97.50Million)forBBC.Further,asaninducementandtowardspartialconsiderationfor entering into the credit agreement, warrants were issued to the lender, which had a right to purchase common stock of BBC,having par value of USD 0.01 Warrants per share. BBC had not accounted for these warrants in the relevant period and accordingly accounting impact was not considered in the consolidated financialresultsofthatperiod ▪ The Holding Company was required to account financial liability at fair value of warrants with corresponding debit to debt issuance cost. These warrants shouldbesubsequentlymeasured atfairvaluethroughprofit or loss at eachreportingdate in accordance withInd AS 109,‘Financial Instruments’.Further, debtissuancecostshouldbeamortisedovertheperiodofloan B Unamortised cost of ▪ During the financial year 2020-21, BBX has identified excess unamortized cost for maintenance contracts in one subsidiary which is pertaining to financial maintenance year2019-20.Theerrorpertainingtothepastperiodhasnowbeenrecordedbyrestatingtherespectivereportingperiod contracts ▪ Duringthe financial year2019-20,BBCexecutedan arrangement of sale and leaseback with PittsProperties Inc.(‘PPI’)where BBC(‘seller / lessee’) agreed to sell andlease backitsland andbuildingwithPPI (‘purchaser/buyer/ lessor’).The transaction wasrecorded inthebooks intherelevantperiod. PPI isan unrelatedparty. ▪ During the same financial year 2019-20, AGC USA had provided financial guarantee to the lender of PPI on behalf of PPI. BBC had also provided springing C guaranteetothelenderofPPIwhichbecameeffectiveonprematurerepaymentbyBBCtoPathlightinDecember2019.ItisconstructedthatPPIraisedthe money from its lender against the financial guarantee given by AGC USA apart from the security of land and building to pay BBC towards sales Sale and consideration.Accordingly, the initial sale and lease back transaction became invalid in line with Ind AS 115,‘Revenue fromContractswith Customers’ and leaseback Ind AS 116, ‘Leases’. This has resulted into unwinding of sale and lease back transaction on the initial date of recognition. Land and building are re- recognized in the books and depreciation is charged as if the sale never took place. Financial liability is recognized in the books for the amount equivalent totheconsiderationalreadyreceivedfromPPIinrespectiveperiods. ▪ Further, AGC USA and BBC had not accounted for the financial guarantee in accordance with Ind AS 109, ‘Financial Instruments’ at the time of issuing the guarantee to lenders of PPI. Accordingly, guarantee is recorded at fair value on initial recognition, and fair value is determined by comparing effective interestrateimpliedbythecashflowanalysiswithBBC’sincrementalborrowingrate 49 IMPACT OF FINANCIAL RESTATEMENT Balance Sheet Statement 31-Mar-20 31-Mar-20 Particulars (in Rs. Crs) (Before Adjustments (Restated) Restatement) Profit & Loss Statement ASSETS Non-current assets Particulars (In Rs. Crs) FY21 FY20 Property, plant and equipment 62.75 101.62 164.37 PBT before restatement 134.26 48.10 Right of use assets 186.52 (70.99) 115.53 Financial assets 0.00 Adjustments: Other financial assets 53.24 (30.16) 23.08 (A) Warrants (41.70) (60.33) Other non-current assets 77.46 6.71 84.17 (B) Deferred cost - (34.40) (C) Sale and leaseback 3.43 (26.34) Current assets Other current assets 311.08 (36.05) 275.03 PBT after Restatement 96.00 (72.98) Tax 17.90 6.98 EQUITY AND LIABILITIES PAT after Restatement 78.10 (79.96) Equity Other equity (77.57) (128.30) (205.87) Liabilities Non-current liabilities Financial liabilities Lease liabilities 118.76 (53.40) 65.36 Other financial liabilities 0.00 157.42 157.42 Current liabilities Financial liabilities Lease liabilities 78.84 (11.07) 67.77 Other financial liabilities 562.72 6.49 569.21 Liability created on warrants as on 31stMarch 2021 is for Rs. 102.03 Crores (US$14.0 Million). However, On 30 June 2021, BBX has entered into a contract to premature the warrant agreement with Pathlight Capital Fund LLP, executed in pursuance of credit agreement, by buying back the warrants for a value of Rs. 89.71 Crores (US$ 12.25 Million). 50 Annexure – Links to Stock Exchange Intimations Particulars Links CRISIL Ratings Rationale Press Release Press Release 4 Press Release 3 Black Box Corporation Acquisition Press Release 2 Press Release 1 Fujisoft Technologies UAE Press Release Pyrios Pty Ltd (Australia) Press Release 2 Pyrios Pty Ltd (New Zealand) Press Release 1 Dragon Fly Technologies Limited Press Release Q3 & 9MFY22 Results Results 51 CONTACT US Company : Investor Relations Advisors : Strategic Growth Advisors Private Limited Black Box Limited CIN: U74140MH2010PTC204285 CIN: L32200MH1986PLC040652 Rahul Agarwal / Ami Parekh Deepak Bansal rahul.agarwal@sgapl.net / ami.parekh@sgapl.net deepak.bansal@agcnetworks.com +91 982143 8864 / +91 80824 66052 www.blackbox.com www.sgapl.net 52