#1Marshall Q1FY23 Investor Presentation AUGUST 2022 MARSHALL MACHINES LIMITED www.marshallcnc.com Marshall с 0000000 O O O#2Inside this Presentation 01 02 03 ABOUT MARSHALL MACHINES BUSINESS REVIEW GROWTH DRIVERS & OUTLOOK SLIDE 03 SLIDE 20 SLIDE 26 04 05 06 CONCLUSION FINANCIAL PERFORMANCE Q1FY23 PERFORMANCE HIGHLIGHTS SLIDE 30 SLIDE 32 SLIDE 36#301 About Marshall Marshall ☐ C 04 EVOLUTION 05 MARSHALL AT A GLANCE 06 PRODUCT PHILOSOPHY 07 PRODUCT PORTFOLIO 09 PARTICIPATION IN IMTS, CHICAGO 10 PARTNERSHIP WITH IAMSME 11 MARSHALL AND MARUTI CENTER FOR EXCELLENCE 12 R&D & IP DRIVEN 14 OPERATIONAL UNITS 16 ESTABLISHED CLIENTELE 18 STRONG NETWORK 19 MANAGEMENT TEAM D D C 000 000 0000000#4Evolution HUMBLE BEGINNINGS 1961-2001 INNOVATION 2002 ONWARDS STARTED BUSINESS AS MANUFACTURER OF MANUAL LATHE MACHINES 1961 Late Shri Gautam Sarup founded the business 1986-89 2nd generation joins & drives the business 1994 Incorporated V. B. Spinning Mills (P) Limited to design & manufacture high-precision bench lathe & heavy-duty lathe 1997 Entered into 1st international tie-up with Path Wizard Inc. (USA) 2001 Setup state-of-art facility at Ludhiana and launched double-spindle CNC Lathe DESIGN & MANUFACTURING OF BREAKTHROUGH TURNING CENTERS 2002 Launched patented double spindle turning center 2009 Launched patented four spindle CNC Lathe 2014 3rd generation joins the business INTEGRATION WITH AUTOMATION 2012 Inaugurated the second state of the art facility for providing Turnkey Automated Solutions 2013 ■ Launched SmartCorrect Gauging Stations ■ Launched RoboTurn DS 400 for the first time in India 2015 Started executing high profile automation projects INTEGRATION WITH INDUSTRY 4.0 2016 Introduced loTQ and launched world's 1st plug-and-play SmartCorrect Gauging Station 2017 Established loTQ & Tech Demonstration Center in Manesar In addition, launched Twin Turn UBER CNC Machine 2018 ■ Introduced the concept of Super Optimized Machines 2019 ■ Fine tuned and launched loTQ - the first dedicated quality management system ■ SmartFac Universal launched for factory monitoring Opened technical center for export to USA market 2021 ■Finished CAPEX cycle to augment manufacturing capacity to 250 crores 2022 ■ Executed its first high-profile automation project in 4W alloys wheels category for Steel Strips Wheels Limited 04 I MARSHALL MACHINES LIMITED#5Marshall at a Glance WHEEL FLANGE LINE Incorporated in 1961, Marshall Machines is a renowned brand in the Indian machine tools industry. • • • Marshall has been a manufacturer of high precision bench lathes, heavy-duty lathes and capstan lathes. Over the last two decades, Marshall's single-minded focus on R&D, Automation, Industry 4.0 technology has positioned it as a niche player in a commoditized market. At present, Marshall is a leading manufacturer of Smart Intelligent Internet Enabled Machine Tool Equipment (including Robotic Automation). 60+ Years Old Brand in Machine Tool Industry Strong Brand recall E& 4,000+ Cumulative Machines Deployed Superior Intellectual Property 7 Patents-held* 22 Patents-applied* 300+ Team Strength 35+ Automation & Innovation Team 1,500+ Active Clientele 120+ Executed Successful Automation Projects 35+ Machines in Portfolio 05 *includes Patents filed & held by promoter group as well MARSHALL MACHINES LIMITED#6Product Philosophy ☐ Super-focused product development philosophy differentiating us from the competition. Focused on deploying a complete solution offering, and not selling an array of machines with numerous makes & models. A 'frugal innovation' and 'Indian Jugaad' mindset helps us solve real problems for Indian machine shops, an edge we have over foreign machine manufacturers. SUPER-OPTIMIZED MACHINES Super optimized machines that offer higher productivity & lower cost of operations compared to their peers. Cost per component produced is reduced, hence increasing ROI of the machine. Products CAF (CITIUS-ALTIUS-FORTIUS) UNO TWINTURN UBER RIGIDTURN RAPIDTURN TWINTURN A THREE-PRONGED PRODUCT DEVELOPMENT PHILOSOPHY INDUSTRY 4.0 MARSHALL TECHNOLOGY TRISHOOL AFFORDABLE AUTOMATION Automation split over more than one machine, generating higher ROI and shorter payback period. Products TWIN GRIP TWIN RELEASE ROBOTURN Cells & Lines 06 Focused on accessible, affordable & implementable Industry 4.0 technologies: 1. SmartFac (Productivity) 2. SmartPredict (Predictive Maintenance) 3. SmartCorrect (Quality) Products B loTQ suit of smart machines SmartCorrect Gauging Station SmartCorrect Eco Low Cost Gauging Station SmartSense 3 in 1 Sensor for monitoring machine health MARSHALL MACHINES LIMITED#7Product Portfolio 35+ Machine Offerings INDUSTRY 07 AUTOMOBILE CONSUMER DURABLES AND DURABLES GENERAL ENGINEERING OIL & GAS AEROSPACE & DEFENCE MARSHALL ROBOTURN XL CELL ROBOTURN FLEXI CELL Roboturn XL INDUSTRY Marshall TWINTURN UBER WITH SMARTLOAD TWINTURN UBER COMPONENT/JOB INDUSTRY COMPONENT/JOB INDUSTRY COMPONENT/JOB . 2W alloy wheel Gear blanks Small turned jobs Automated cell for zero defect production Flexible cell for small batches Lowest cost automation with space saving MARSHALL MACHINES LIMITED#8Product Portfolio (Contd.) 35+ Machine Offerings JUNO INDUSTRY 08 AUTOMOBILE CONSUMER DURABLES AND DURABLES GENERAL ENGINEERING OIL & GAS Juno Marshall SMARTER TM SERIES TURNMILL INDUSTRY COMPONENT/JOB INDUSTRY " Pipe fittings Connectors AC parts Marshall SMARTER TMH-20 COMPONENT/JOB INDUSTRY " Shafts and all types of medium sized parts Complete machining (Turning + Lowest footprint machine with very high output AEROSPACE & DEFENCE Milling) at very low cost COMPONENT/JOB " Valves Complex parts Marshall Better solution than Turning + VMC MARSHALL MACHINES LIMITED#9Participation in IMTS 2022, Chicago Participation in Trade Shows and Exhibitions 09 Entrance To South Building D D 0 Mazak Corporation Okuma America Corporation JTEKT TOYODA AMERICAS CORPORATION Absolute. Machine Tools, Inc. DN Solutions FANUC Corporation INDEX Corporation Hardinge Exit & Skyway To West Building - Aisle 338000-338100 ㅁ Aisle 338200-338300 Anle 138200-338300 Aisle 338400-338700 Marshall Machines (P) Ltd. - 338898 Aisle 338800-338900 Ale 339000-39100 =1 B Aisle 339400 IMTS2022 Marshall Machines is participating in one of the best International Manufacturing Technology Show With initiatives like these, Marshall Machines hopes. to create in-roads into the high-potential markets such as the USA MARSHALL MACHINES LIMITED#10Partnership with IAMSME of India Gurukul initiative for skilling India 010 Marshall Marshall SmartCorrect gurukul WHY & of industry 4.0 Marrball Marshall World bank funded initiative for skilling in India Marshall among the 3 partners with IAMSME of India SmartFAC SmartSens marzholl PROBLEMS + SOLUTION RESATS Oinam a Marshall will provide training on CNC programming and Industry 4.0 Lab will have on demo latest equipment desirable for best production practices Hundreds of people will be jointly trained through this initiatives MARSHALL MACHINES LIMITED#11Marshall and Maruti Center for Excellence India's 1st comprehensive Training Program for Industry 4.0 Technologies ACE Cisco Weber Meetings Meeting Info Edit Share View Audio & Video Participant MACE MARUTI CENTER FOR EXCELLENCE Layout HYTECH Maruti Center for Excellence (MACE) will impart training for Industry 4.0 Technologies to automotive component suppliers of Maruti. The training will cover three most important areas for machine shops: • Productivity • Quality Health Marshall has installed proprietary equipment for training on four types of machines at MACE: • Vertical Machining Center CNC Turning Center Injection Moulding Machine Hydraulic Press The training program will follow the LOPI Model: Learn • Observe • Practice ☐ Vinay chaudhary Sunil Kumar Rok 2511 556 4000 25115564000 Aadil Khan Aachish bhardwa ASHESHEK SHUKLA Abhishek Singh Se adech sharma Adityang 11 | Implement The trainees will then implement Industry 4.0 Technologies in their factories. MARSHALL MACHINES LIMITED#12R&D and IP Driven Company ப 3rd Generation of Innovators and Engineers at the helm Marshall distinguishes itself as an integrated machine tool solution provider Focused on catering emerging needs of Indian machine shops through Affordable Automation and Industry 4.0 offerings Completely integrated value chain to design & manufacture machines in-house Extensive Research & Development leading to higher IP generation Equally focused on IP generation & protection 12 BENEFITS DERIVED FROM R&D Smart CNC Systems Higher ROI & shorter payback periods of products Integrated value chain Cost-effective & productive machines SUPERIOR INTELLECTUAL PROPERTY 29* Patents filed in India and USA Zero-defect manufacturing and unparalleled features *includes Patents filed & held by promoter group as well Ideation Design Manufacturing ①個 Solution Offering Consultation Software & Updates Customized Machines AMC & After-Sales Service MARSHALL MACHINES LIMITED#13R&D and IP Driven Company PATENTS FILED IN INDIA AND USA Patents Filed Approved (Contd.) India USA Total 6 1 Filed (Approval Pending) 16 6 22 Total Note: 1. 2. Many filed patents are in late stages of approval Includes patents filed & held by the promoter group as well 13 22 7 29 Marshall has registered a very valuable Patent in USA - System and a Method to Enable Zero Defect Production MARSHALL MACHINES LIMITED#1414 I Operational Units Marshall Machines operates two state- of-art manufacturing facilities in Ludhiana. The company has recently completed an expansion in Unit 1 and 2 which includes addition of: Zeiss measuring machines Large machining centers Grinding machines Turning and turn-milling machines After the conclusion of CAPEX cycle (2018-21), the Company has a manufacturing capacity to do *250 crores in Sales, from erstwhile capacity of *75 crores in 2017. Going forward, the company plans to streamline production and strengthen supply-chain by outsourcing certain sub-assemblies and adding reliable suppliers in vicinity to the manufacturing unit. UNIT 1 LUDHIANA UNIT 2 LUDHIANA Setup in 2001 ■ 4,181 Sq. Mt. Plot Area 5,295 Sq. Mt. Buildup Area ■ Dedicated unit for assembly of traditional machines MANUFACTURING CAPACITY 600 traditional machines Setup in 2012 - 2,090 Sq. Mt. Plot Area 3,716 Sq. Mt. Buildup Area Dedicated unit & team for Automation and Industry 4.0 machines MANUFACTURING CAPACITY 100-125 RoboTurn Automated Machines 150 Compact CNC Lathes 1,500 SmartCorrect Gauging Stations MARSHALL MACHINES LIMITED#15State-of-art Facilities World Class Manufacturing Facilities Temperature Controlled, Dust Proof Assembly Areas World's Best STUDER CNC Cylindrical Grinder World Class European Mother Machinery New 5 Axis CNC Universal Machining Center with Auto Indexing head with "A" & "B" Axis Machine Parts Designed and Validated Using Solid Works Equipped with Latest Carl Zeiss CMM Equipped to Perform Laser Calibration and Testing 15 Ma MARSHALL MACHINES LIMITED#16Established Clientele 1,500+ 2 Active Clientele 400+ Broad customer segments: 10/15 Year+ Relationships Corporate Institutions and SME's MATURE SECTORS AUTOMOBILE CONSUMER GENERAL DURABLES AND DURABLES ENGINEERING EMERGING SECTORS AERO SPACE 16 IIIII IIIII مساF ELECTRONICS MEDICAL EQUIPMENT'S AUTOMOTIVE Alloy Wheels - 2W & 4W, Gear Blanks, Pistons, Crank Shafts = DANA ENDURANCE Complete Solutions BAJAJ KALYANI ECHIAY INDUSTRIES N> GKN AUTOMOTIVE GNA JBMI LCB LG Baarishnan & Bras Limited UNO MINDA Our milestones are touchstones. GABRIEL MUNJAL AUTO INDUSTRIES LIMITED MUNJAL SHOWA RICO 2 SHIVAM RICO AUTO INDUSTRIES LIMITED AUTOTECH LTD motherson ROCKMAN talbros talbros INDIA TVS Sundram Fasteners Limited TUBE INVESTMENTS OF INDIA LIMITED SHRIRAM Varroc MARSHALL MACHINES LIMITED#17Established Clientele (Contd.) CONSUMER APPLIANCES AND DURABLES Motor Parts, Fans, Home Electronics 17 ABB BAJAJ Bajaj Electricals Ltd. Inspiring Trust Crompton HAVELLS C POLYCAB Connection Zindagi Ka RR KABEL USHA V-GUARD BOSCH GENERAL ENGINEERING Bearings, Consumables, Pumps ATAM VALVES orient electric switch to smart (CRI) SIEMENS बी एच ई एल BHEL GMM Pfaudler Defining the standard Pf Honeywell nbc flexible solutions SAHUWALA GROUP tynor MARSHALL MACHINES LIMITED#18Strong Network ------ 14 1 2 4 3 5 6 8 9 11 10 12 15 15 13 20 18 23 21 19 18 2 24 26 25 17 1. LUDHIANA CHANDIGARH 2. 23 ROHTA HARIDWAR RUDRAPUR 3. 4. 5. 6. DELHI 7. GURGAON 8. GHAZIABAD 9. MANESAR 10. AGRA 11. JAIPUR 12. KANPUR 13. BHOPAL 14. AHEMADABAD 15. INDORE 16. JAMSEDPUR 17. KOLKATA 18. NASIK 19. AURANGABAD 20. MUMBAI 21. PUNE 22. HYDRABAD 23. KOLHAPUR 24. BANGALORE 25. CHENNAI 26. COIMBATORE Pan-India network with presence across all key manufacturing hubs in India. A team of sales & service engineers catering to: ■ Lead & sales generation ■ Machine deployment & after-sales services DESIGN AND MANUFACTURING RESOURCES CUSTOMER SUPPORT RESOURCES R&D Team 09 Sales Engineers 14 102031 IOT Engineers 05 Application Support 06 Manufacturing Resources 180 Service Support 14 Automation Support 14 MARSHALL MACHINES LIMITED#19Management Team SmartFAC GAURAV SARUP CO-FOUNDER & MD Degree in Production Engineering from Punjab University 35+ years of Work Experience in designing innovative machine tools PRASHANT SARUP CO-FOUNDER & JT. MD Degree in Production Engineering from Birla Institute of Technology 32+ years of Work Experience in designing and electronic integration SIDDHANT SARUP WHOLE TIME DIRECTOR B.Tech in industrial Engineering and holds a Master's Degree in Operations Management (MBA) from Thapar University, Patiala 7+ years of Work Experience Management Team includes several Qualified and Experienced People in the following Departments; Design, Production, Quality, Sales, Service, New Developments, Finance, etc. ARCHANA SARUP WHOLE TIME DIRECTOR Master's Degree from Punjab University 12+ years of Work Experience A.N. CHANDRAMOULI STRATEGIC ADVISOR TO THE BOARD Mechanical Engineer from NIT, Trichy and PG from IIT, Calcutta 40+ years of Work Experience, former President & CEO of Makino India (Japanese Machine Tools major) and former MD of Starrag India (Swiss based Machine Tools major) SANJAY KUMAR SONI CHIEF OPERATING OFFICER Postgraduate in Mechanical Engineering from IIT, Madras. 37+ years of Work Experience. His prior stints include work at HMT, Escorts, Bharat Forge, Uniparts Group, LSR Forge and Hindustan National Glass Board of Directors includes 3 Independent Directors 19 MARSHALL MACHINES LIMITED#2002 Business Review 21 ANNUAL PERFORMANCE HIGHLIGHTS 22 REVENUE STREAMS 23 WORKING CAPITAL CYCLE 24 KEY STRENGTHS 25 BUSINESS CANVAS C D LIVE C C C Marshall#2121 50.19 59.36 FY17 FY18 FY19 65.22 59.74 67.14 FY20 FY21 FY22 6.15 EBITDA 12.81 15.21 REVENUE (IN CRORES) 60.33 Annual Performance Highlights 21.6% 23.3% 12.3% 14.0% 11.4% 15.54 FY17 FY18 FY19 FY20 FY21 FY22 EBITDA MARGIN 9.41 6.90 (IN CRORES) 26.0% EBITDA & EBITDA MARGIN (IN CRORES & %) PROFIT AFTER TAX & CASH FLOW FROM OPERATIONS DEBT & DEBT TO EQUITY (IN CRORES & TIMES) 1.10 10.87 4.15 5.00 5.77 13.60 2.97 11.79 0.36 11.34 FY17 FY18 FY19 FY20 FY21 FY22 ■ PAT ■CFO -3.14 4.78 21.08 23.63 25.49 1.33 0.83 0.87 0.78 0.66 32.47 FY17 FY18 FY19 FY20 FY21 FY22 ITOTAL DEBT DEBT TO EQUITY MARSHALL MACHINES LIMITED 40.63 40.18 2.13#22Revenue Stream INDUSTRY-WISE REVENUE 22 29% 22% FY21 3% Automobile 46% 25% 19% FY22 1% General Engineering 55% ■ Reduced business for engineering industry due to ■ maturing markets Working on limiting exposure to automotive markets, while concentrating on certain import- substitution products such as alloy wheels Consistently working on growing emerging sectors like Electronics Adding new sectors like Aerospace and Medical Equipment Ongoing de-risking efforts to not have >25% share from one industry ■ Primarily a product-based revenue stream ■ Prominence of AMC and Service & Maintenance to rise in future, as the company moves towards complex and automated offerings Consumer Appliances Others MARSHALL MACHINES LIMITED#23Working Capital Cycle WORKING CAPITAL DISTRIBUTION (IN DAYS) WORKING CAPITAL DAYS (IN DAYS) FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 ■Inventory Days ■Receivable Days ■Payable Days Advance Days REASONS FOR HIGH WORKING CAPITAL INVENTORIES High lead time of WIP-inventories due to a 6 months sun-baking seasoning procedure of machine structures, for high-performance machines Critical imported components of machines kept in sufficient buffer to avoid any production breaks DEBTORS Seasonality more sales made in Q3 & Q4 of the financial year, leading to higher debtors at year-end EFFORTS TO OPTIMIZE WORKING CAPITAL INVENTORIES Deploying a technology called 'Vibratory Stress Relieving' & other artificial seasoning methods which will reduce the lead time by eliminating the sun-baking process. Adding suppliers in vicinity (including casting suppliers) to the manufacturing unit, reducing the need to carry higher inventories Limiting business in Oil & Gas sector, where these high-performance machines are deployed Outsourcing manufacturing or certain sub-assemblies AIM TO BRING DOWN WORKING CAPITAL CYCLE TO 150-180 DAYS BY FY23. 23 MARSHALL MACHINES LIMITED#24Strengths & Weaknesses 24 STRENGTHS WEAKNESSES Unmatched value proposition to the industry Innovative, customized solution offerings 61-year-old brand, Marshall Early mover in Automated & Industry 4.0 offerings State-of-art infrastructure & dedicated team for Automation & Industry 4.0 One-stop solution provider for customers ■ Agile and adaptable organization ■ Well-established team of implementors of the latest technologies ■ Commoditized & price-competitive industry for standard machines Long working capital cycle ■ Scale of operations Lack of presence in some industrial belts S W MARSHALL MACHINES LIMITED#25Business Canvas 25 KEY PARTNERSHIPS International Machine Tool Manufacturers Dealers in USA - TGH, Morris South Actively looking for business tie-ups & collaborations with European & Japanese machine tool manufacturers " KEY ACTIVITIES П% R&D & designing machines Manufacturing superior machines IP - development & protection KEY VALUE PROPOSITION Customized solution offerings to machine shops Unique value propositions include: a. Affordable Automation b. Industry 4.0 Technologies CUSTOMER RELATIONSHIPS Strong, seasoned customer relationships Many 10/15 years+ relationships ~60% of repeat business from existing customers CHANNELS CUSTOMER SEGMENTATION 2 key customer segments i.e. SME vs. Institutional (Corporates) Majority erstwhile customers from Auto industry, now adding clients in new emerging manufacturing opportunities RESOURCES Intellectual capital Established brand 'Marshall' State-of-art manufacturing units Human capital COST STRUCTURE Fixed-cost based cost-structure Elevated depreciation & finance cost after recent CAPEX % Directly dealing with all customers in India In USA through distributors (TGH and Morris south) REVENUE STREAMS At present primarily machines sales, with efforts to grow AMC & Service sales Automobile industry primary sales-contributor MARSHALL MACHINES LIMITED#2603 Growth Drivers & Outlook Marshall CO 27 STRATEGIC PRIORITIES 28 GROWTH DRIVER 29 DEVELOPING STRATEGIC GLOBAL ALLIANCES C C C#27Strategic Priorities 27 INCREASING SHARE OF AUTOMATION & INDUSTRY 4.0 Increasing the share of differentiated and unique Marshall offerings such as Affordable Automation and Industry 4.0 Become default choice of customers for Smart machines INCREASE SHARE OF EXPORT BUSINESS Export to USA market Export to Europe through strategic partnership with European Machine Tool Builders Export to fast growing Asian countries like Bangladesh. REVENUE DIVERSIFICATION Limiting exposure to any one under industry, to not more than 25%, to de-risk the business and counter cyclicality in business ADDING COMPETENCIES Adding competencies in new, emerging manufacturing sectors of India, namely Electronics, Aerospace, Medical Equipment DEBT % REPAYMENT Using Cash Flow from Operations to bring down debt REDUCING WORKING CAPITAL CYCLE Limiting working capital cycle to 150-180 days by FY23 MARSHALL MACHINES LIMITED#28Growth Drivers & Outlook IMPORT SUBSTITUTION PRODUCT OFFERING Alloy Wheels production moving to India Electronics manufacturing moving to India INCREASING ADOPTION OF INDUSTRY 4.0 TECHNOLOGIES Companies looking to improve efficiencies will look to digitize their shopfloor FOCUS ON AUTOMATION Customers will look to reduce dependence on manpower going forward in order to de risk themselves. More and more people will move towards automation FOCUS ON DE-SKILLING OPERATION Customers who cannot afford automation may look to reduce their dependence by using smart technologies like gauging stations ADDING COMPETENCIES IN EMERGINGG MANUFACTURING Adding competencies in new, emerging manufacturing sectors of India like Electronics 28 MARSHALL MACHINES LIMITED#29Developing Strategic Global Alliances With European & Japanese Machine Builders MARKET IMPORTED MACHINES IN INDIA AUTOMATED CELLS GOVERNMENT BUSINESS 29 EXPANDING CLIENTELE MACHINE PARTS - Import advanced machines from European & Japanese partners and market them in India Machines manufactured by Marshall, including automated cells, to be exported in these developed markets using the strategic alliances Tap opportunities in the Government & Public sector enterprises through these alliances Partner machines built-in India (by Marshall) for sales in India ☐ Machine parts to be exported to Europe or Japan for the partner's machines built in their respective country MARSHALL MACHINES LIMITED#3004 Conclusion Marshall 31 INVESTMENT RATIONALE O с L BOOOOOD cc cc O#3131 I Investment Rationale حمام ✓ ✓ ☐ CAPEX COMPLETED Completed a significant CAPEX between 2018-21, taking manufacturing capacity to *250 crores in Sales from erstwhile *75 crores in 2017. Potential to do 25% EBITDA Margins on the same. OPPORTUNITY SIZE Huge potential of Affordable Automation and Industry 4.0 offerings EMERGING OPPORTUNITIES IN MANUFACTURING Emerging opportunities in sectors such as Electronics, Aero Space and Medical Equipment FOCUSED ON DELEVERAGING ☐ SEASONED MANAGEMENT The company is focusing on debt repayment through a) higher internal accruals and b) reducing working capital cycle ■ 3rd generation of Innovators and Engineers at helm MARSHALL MACHINES LIMITED#3205 Financial Performance 33 PROFIT AND LOSS SUMMARY 34 BALANCE SHEET SUMMARY 35 CASH FLOW STATEMENT SUMMARY Marshall O с L BOOOOOD Ο Ο ΟΟ O O O#33Profit & Loss Summary PARTICULARS Sales Raw Material Cost Employee Expenses Other Expenses Total Expenses EBITDA Other Income Interest Depreciation Tax Profit After Tax EPS (*) EBITDA Margin (%) Profit After Tax Margin (%) (IN CRORES) FY17 FY18 FY19 FY20 FY21 FY22 50.19 59.35 65.22 59.74 67.14 60.33 33.97 38.05 38.89 30.12 46.32 37.91 4.24 4.57 5.77 6.83 6.85 10.75 5.83 3.92 5.35 6.98 4.56 4.77 44.04 46.54 50.01 43.93 66.67 64.16 6.15 12.81 15.21 15.81 9.41 6.90 0.35 0.07 0.22 0.80 0.11 0.14 3.11 3.22 3.71 4.39 3.81 4.46 1.60 2.20 3.73 8.10 5.12 6.27 0.69 2.45 2.22 1.15 0.22 -0.56 1.10 5.01 5.77 2.97 0.36 -3.14 0.76 3.44 3.97 2.04 0.25 -2.16 12.3% 21.6% 23.3% 26.5% 14.0% 11.4% 2.2% 8.4% 8.8% 5.0% 0.5% -5.2% (Note EPS for all years has been calculated on the current Equity Capital based of 14.55 crores, to counter post-IPO change in Equity) 33 MARSHALL MACHINES LIMITED#34Balance Sheet Summary (IN CRORES) PARTICULARS Equity Capital Reserves & Surplus Shareholders Funds Long Term Borrowings FY17 FY18 FY19 FY20 FY21 FY22 1.81 2.14 14.55 14.55 14.55 14.55 8.05 15.73 23.96 26.72 34.50 31.43 9.86 17.87 38.51 41.27 49.05 45.98 5.93 7.41 8.38 13.72 14.22 9.50 Deferred Tax Liabilities 0.15 1.82 3.43 3.00 5.66 5.13 Other Long Term Liabilities 2.31 1.90 Long Term Provisions 0.87 0.90 0.58 0.85 0.80 0.97 Non Current Liabilities Short Term Borrowings Trade Payables 6.95 10.13 14.70 19.47 20.69 15.60 15.16 16.22 17.11 18.75 26.41 30.67 18.39 18.39 16.07 19.94 21.10 24.90 Other Current Liabilities 14.07 15.43 19.92 20.72 14.32 17.01 Short Term Provisions 0.60 1.60 1.44 0.96 0.18 0.13 Current Liabilities 48.22 51.64 54.54 60.37 63.03 73.76 Total Equity and Liabilities 65.03 79.64 107.75 121.11 132.78 135.34 Property, Plant & Equipment 16.00 22.79 46.39 52.91 61.83 57.35 Non Current Investment Long Term Loans & Advances 0.24 0.24 0.21 0.20 Non Current Assets 16.24 23.03 46.60 53.11 70.44 64.04 Inventories Trade Receivables 36.73 38.30 39.91 45.79 48.03 50.41 8.23 11.42 12.35 14.04 11.68 18.00 Cash and Bank Balances 3.63 3.92 4.22 4.51 0.64 0.27 Short Term Loans & Advances Other Current Assets 0.20 2.97 4.67 3.66 1.57 2.14 Current Assets 48.79 56.61 61.15 68.00 62.33 71.30 Total Assets 65.03 79.64 107.75 121.11 132.78 135.34 34 MARSHALL MACHINES LIMITED#35Cash Flow Statement Summary PARTICULARS Cash from Operating Activities (IN CRORES) FY17 FY18 FY19 FY20 FY21 FY22 10.87 4.15 13.60 11.79 11.34 4.78 Cash from Investing Activities (5.09) (8.92) (27.25) (14.50) -10.36 -0.37 Cash from Financing Activities (5.18) 5.06 13.95 3.00 -1.76 -4.77 Net Change in Cash & Cash Equivalents 0.60 0.29 0.30 0.29 -0.78 -0.37 Cash & Cash Equivalents - Opening Balance 3.03 3.63 3.92 4.22 1.42 0.64 Cash & Cash Equivalents - Closing Balance 3.63 3.92 4.22 4.51 0.64 0.27 35 MARSHALL MACHINES LIMITED#3606 Q1FY23 Review 37 PROFIT & LOSS SUMMARY 38 ORDER BOOK AND BID 39 MANAGEMENT COMMENTARY 40 MARKET STATISTICS 41 GET IN TOUCH Marshall O с L BOOOOOD Ο Ο ΟΟ O O O#37Profit & Loss Summary (IN CRORES) PARTICULARS Q1FY22 Q4FY22 Q1FY23 Sales 14.16 24.38 6.79 Raw Material Cost 9.05 14.74 4.63 % Change (Q1FY23 vs Q1FY22) Comments Due to plant reorganisation exercise lasting 45 days of Q1FY23, thus -52% leading to no significant dispatches during the quarter. -49% Employee Expenses 2.72 2.68 2.24 -18% Some optimisations of workforce. Other Expenses 0.85 1.56 0.81 -5% Total Expenses 15.18 21.53 10.26 -32% EBITDA 1.73 5.40 -0.02 - Primarily on account of significantly lower sales during the quarter. Other Income 0.03 0.04 0.08 169% Interest 0.95 1.12 1.00 5% Depreciation 1.60 1.43 1.58 -1% Tax -0.20 0.73 -0.87 Profit After Tax -0.80 2.16 -2.52 -Primarily on account of significantly lower sales during the quarter. EPS () -0.55 1.49 -1.73 EBITDA Margin (%) 12.2% 22.1% Profit After Tax Margin (%) -5.6% 8.9% -0.3% -37.2% -1,252 BPS -3,152 BPS 37 MARSHALL MACHINES LIMITED#38Order Book and Bid Order Book and Bid (IN CRORES) 38 ORDER BOOK ORDER BID 228 51 42 155 30th June 2021 30th June 2022 30th June 2021 30th June 2022 ↑ ↑ 21% Healthy Order Book (Y-o-Y) 47% Strong Order Bids (Y-o-Y) MARSHALL MACHINES LIMITED#39Management Commentary GAURAV SARUP CO-FOUNDER & MD • Marshall's Q1FY23 performance was severely impacted due to a reorganisation exercise of its two manufacturing units, adjacent to each other. The Company reorganised its manufacturing operations to adopt a lean manufacturing model, improve operational efficiencies by eliminating unnecessary movement of goods between the plant and optimise costs. After the reorganisation, Unit 1 focuses on Machining, Pre-assembly Work and Painting, and Unit 2 focuses on Assembly Testing and Dispatch. This exercise lasted about 45 days, and most of the plant's workforce was engaged in moving the machinery and other manufacturing equipment between the two plants. Because of this, there were no significant dispatches during the quarter, and hence Revenue from Operations was lower. Further, Q1 usually is a soft quarter for the Company, and a considerable part of the business is typically executed in the second half of the financial year. . . The Company has a good outlook for automation projects, as clients are increasingly scouting and opting for automated machine cells to improve their production efficiency. As a result, the Company expects an increase in the share of automated business within the revenue mix. Coming quarters should see an improvement on both the top line and bottom line front, supported by a healthy order book. 39 MARSHALL MACHINES LIMITED#40Market Statistics Shareholding Pattern IPO Date 40 33% Issue Price NSE Symbol 28th August 2018 42 MARSHALL IPO Subscription 2.2X 67% Shares Outstanding 1.46 Cr ■Promoters Public Face Value Promoter Pledge 10 NIL MARSHALL MACHINES LIMITED#41Get in Touch SIDDHANT SARUP Whole-Time Director [email protected] Marshall www.marshallcnc.com SAYAM POKHARNA Investor Relations Advisor [email protected] til ADVISORS SAFE HARBOR This document which has been prepared by Marshall Machines Limited (the "Company", "Marshall", "Marshall Machines"), 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 document 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 Document. This Document 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 Document is expressly excluded. Certain matters discussed in this Document 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 industry 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 Document. The Company assumes no obligation to update any forward-looking information contained in this Document. Any forward-looking statements and projections made by third parties included in this Document are not adopted by the Company and the Company is not responsible for such third-party statements and projections.