#1Marshall Q4FY22 Investor Presentation JULY 2022 MARSHALL MACHINES LIMITED www.marshallcnc.com Marshall 미 □□□□□□□ 00 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 Q4FY22 PERFORMANCE HIGHLIGHTS SLIDE 30 SLIDE 32 SLIDE 36#301 About Marshall M Marshall 0000000 0000000 0000000 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 ΓΕ E WEDD ΓΕ C 0000000 0000000 0000000 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 TwinTurn 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 • • • 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 Ex 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 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 TWINTURN UBER WITH SMARTLOAD VENTURN UBER INDUSTRY 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 Mauhall SMARTER TM SERIES TURNMILL INDUSTRY COMPONENT/JOB INDUSTRY Pipe fittings Connectors AC parts SMARTER Marboll TMH-20 COMPONENT/JOB INDUSTRY COMPONENT/JOB " Shafts and all ■ Valves types of medium Complex parts sized parts Marshall 45 Complete machining (Turning + Lowest footprint machine with very high output Better solution than Turning + VMC AEROSPACE & DEFENCE Milling) at very low cost MARSHALL MACHINES LIMITED#9Participation in IMTS 2022, Chicago Gurukul initiative for skilling India using un Masa Corporatio Okana A Cope Atulate Ma Tel. MTEXT TOYODA AMERICA CORPORATION 09 DN Solutions FANUC Corpora INDEX Corporation Eat & Skyway To West Bang 11 IMTS2022 Marshall Machines (P) Ltd. - 338898 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#10010 | Partnership with IAMSME of India Gurukul initiative for skilling India Marshall www Marshall Smort/AC gurakal World bank funded initiative for skilling in India Marshall among the 3 partners with IAMSME of India 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#1111 | Marshall and Maruti Center for Excellence India's 1st comprehensive Training Program for Industry 4.0 Technologies ACE MACE MARUTI CENTER FOR EXCELLENCE T BYTECH/ 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 • Implement The trainees will then implement Industry 4.0 Technologies in their factories. MARSHALL MACHINES LIMITED#12R&D and IP Driven Company 12 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 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 Ideation Design Manufacturing *includes Patents filed & held by promoter group as well Solution Offering Consultation Software & Updates Customized Machines AMC & After-Sales Service MARSHALL MACHINES LIMITED#13R&D and IP Driven Company (Contd.) PATENTS FILED IN INDIA AND USA Patents Filed Approved India USA Total Marshall has registered a very valuable Patent in USA - System and a Method to Enable Zero Defect Production 6 1 7 Filed (Approval Pending) 16 6 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 22 22 7 29 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 MARSHALL MACHINES LIMITED#16Established Clientele 1,500+ 2 Active Clientele 400+ Broad customer 10/15 Year+ segments: Relationships Corporate Institutions and SME's AUTOMOTIVE Alloy Wheels - 2W & 4W, Gear Blanks, Pistons, Crank Shafts MATURE SECTORS AUTOMOBILE CONSUMER DURABLES AND DURABLES EMERGING SECTORS AERO SPACE 16 IIIII IIIII GENERAL ENGINEERING ELECTRONICS MEDICAL EQUIPMENT'S = DANA GABRIEL ENDURANCE BAJAJ KALYANI SCHMY NOUSTARS GKN AUTOMOTIVE GNA JBMI www UNO MINDA MMUNAL AUTO MUNJAL SHOWA RICO 2 SHIVAM AUTOTECH LTD somenes ROCKMAN talbros talbros TIS Stran Pat INDIA 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 + BOSCH Crompton POLYCAB Can Zindagi Ka HAVELLS RR USHA V-GUARD GENERAL ENGINEERING Bearings, Consumables, Pumps ATAM VALVE बीएचईएल BHEL electric switch to smart (CRI) SIEMENS GMMPfaudler Defining the standard Pf Honeywell nbc flexible solutions SAHUWALA tynor GROUP MARSHALL MACHINES LIMITED#18Strong Network 18 11 2 3 6 8 9 10 12 13 14 15 18 19 20 21 22 24 24 25 26 16 17 1. LUDHIANA CHANDIGARH RUDRAPUR 14. AHEMADABAD 15. INDORE 16. JAMSEDPUR 17. KOLKATA 18. NASIK 19. AURANGABAD 2. 3. ROHTA 4. HARIDWAR 5. 6. DELHI 7. GURGAON 8. GHAZIABAD 21. PUNE 9. MANESAR 22. 10. AGRA 20. MUMBAI 11. JAIPUR 12. KANPUR 13. BHOPAL 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 DICTIO 102001 IOT Engineers 05 Application Support 06 Manufacturing Resources 180 Service Support 14 Automation Support 14 MARSHALL MACHINES LIMITED#19Management Team 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 Engineer by Qualification 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 LITTLE 5 Marshall#2121 50.19 59.36 FY17 FY18 FY19 65.22 59.74 67.14 FY20 FY21 FY22 EBITDA 6.15 12.81 15.21 60.33 21.6% 23.3% Annual Performance Highlights REVENUE (* IN CRORES) EBITDA & EBITDA MARGIN (IN CRORES & %) PROFIT AFTER TAX & CASH FLOW FROM OPERATIONS DEBT & DEBT TO EQUITY (IN CRORES & TIMES) 12.3% 14.0% 11.4% 15.54 FY17 FY18 FY19 FY20 FY21 FY22 EBITDA MARGIN 9.41 ■ PAT 6.90 FY17 1.10 10.87 (IN CRORES) 26.0% 4.15 5.00 5.77 13.60 11.79 0.36 2.97 FY18 FY19 FY20 FY21 FY22 ■ CFO -3.14 11.34 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 TOTAL 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% Consumer Appliances 25% 19% FY22 1% I General Engineering Others 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 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 I 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 ☐ 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 S WEAKNESSES ■ Commoditized & price-competitive ■ industry for standard machines Long working capital cycle Scale of operations Lack of presence in some industrial belts W MARSHALL MACHINES LIMITED#25Business Canvas 25 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 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 R&D & designing machines Manufacturing superior machines IP - development & protection KEY RESOURCES Intellectual capital Established brand 'Marshall' State-of-art manufacturing units Human capital VALUE PROPOSITION Customized solution offerings to machine shops Unique value propositions include: a. Affordable Automation 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 27 STRATEGIC PRIORITIES 28 GROWTH DRIVER 29 DEVELOPING STRATEGIC GLOBAL ALLIANCES C 2 E 11 11] 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 Ⅲ 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#2929 Developing Strategic Global Alliances With European & Japanese Machine Builders 111 MARKET IMPORTED MACHINES IN INDIA Import advanced machines from European & Japanese partners and market them in India HD- AUTOMATED CELLS GOVERNMENT BUSINESS EXPANDING CLIENTELE MACHINE PARTS - ☐ 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 ㅇ 미 ㅇㅇ cc cc O#31Investment Rationale حم ✓ ✓ ☐ 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 31 MARSHALL MACHINES LIMITED#3205 Financial Performance 33 PROFIT AND LOSS SUMMARY 34 BALANCE SHEET SUMMARY 35 CASH FLOW STATEMENT SUMMARY Marshall O с 미 DOOOOOD O O Ο Ο Ο Ο 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 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 Long Term Borrowings 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 6.95 10.13 14.70 19.47 20.69 15.60 Short Term Borrowings Trade Payables 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 (IN CRORES) PARTICULARS FY17 FY18 FY19 FY20 FY21 FY22 Cash from Operating Activities 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 Q4FY22 Review 37 PROFIT & LOSS SUMMARY 39 ORDER BOOK AND BID 40 MANAGEMENT COMMENTARY 41 MARKET STATISTICS 42 GET IN TOUCH Marshall O с 미 DOOOOOD O O Ο Ο Ο Ο O#37Profit & Loss Summary PARTICULARS Q4FY21 Q3FY22 Q4FY22 % Change (IN CRORES) Comments Sales 29.04 9.29 24.38 Raw Material Cost 20.81 6.10 14.74 (Q4FY22 vs Q4FY21) -16%Focus on profitability over volumes. -29% Driven by passing-on increased input costs to customers. Employee Expenses 2.72 2.67 2.68 -2% Other Expenses 1.55 1.24 1.56 1% Total Expenses 27.40 12.94 21.53 -21% EBITDA 3.97 -0.72 5.40 36%Primarily due to an improvement in gross profit margin. Other Income 0.04 0.03 0.04 20% Interest 0.97 1.31 1.12 16% Due to a higher utilisation of working capital limits. Depreciation 1.35 1.62 1.43 5% Tax 0.50 -0.52 0.73 45% Profit After Tax 1.18 -3.08 2.16 EPS (*) 0.81 -2.12 1.49 83%Primarily due to an improvement in gross profit margin. 84% EBITDA Margin (%) 13.7% -7.7% 22.1% 847 bps Profit After Tax Margin (%) 4.1% -33.2% 8.9% 481 bps 37 MARSHALL MACHINES LIMITED#38Profit & Loss Summary Comments (IN CRORES) Sales de-growth on an annual basis, due to severely impacted Q2 & Q3 where -10%the Company witnessed deferring of investments from customers due to 3rd wave Covid. -18% Driven by passing-on increased input costs to customers. Due to an increase in team strength at the senior management level and sales 57% function, coupled with salary increments. 5% PARTICULARS FY21 FY22 % Change (FY22 vs FY21) Sales 67.14 60.33 Raw Material Cost 46.32 37.91 Employee Expenses 6.85 10.75 Other Expenses 4.56 4.77 Total Expenses 66.67 64.16 -4% EBITDA 9.41 6.90 Other Income 0.11 0.14 Interest 3.81 4.46 Depreciation 5.12 6.27 22% Tax Profit After Tax 0.22 -0.56 0.36 -3.14 EPS (*) 0.25 -2.16 EBITDA Margin (%) 14.0% 11.4% -258 bps Profit After Tax Margin (%) 0.5% -5.2% -574 bps 38 -27%Due to a lower topline, coupled with an increase in Employee Expenses. 23% 17% Due to a higher utilisation of working capital limits. Due to write-back of deferred tax. Due to a lower topline, coupled with an increase in Employee Expenses, Interest & Depreciation costs. MARSHALL MACHINES LIMITED#39Order Book and Bid Order Book and Bid (IN CRORES) 39 51 ORDER BOOK ORDER BID 54 135 260 ↑ ↑ 6% Healthy Order Book (Y-o-Y) 93% Strong Order Bids (Y-o-Y) 31st March 2021 31st March 2022 31st March 2021 31st March 2022 MARSHALL MACHINES LIMITED#40Management Commentary GAURAV SARUP CO-FOUNDER & MD • The Company's operational and financial performance has rebounded in Q4FY22 after two subdued quarters that were disturbed in anticipation of a severe third wave, and many of the clients deferring their capital investments at the time. On a QoQ basis, the Company reported a significant increase of 162% in Revenue from Operations, coupled with an improved EBITDA margin of 22% in Q4FY22. Improvement in EBITDA margin was driven at the gross level, where the Company successfully passed the increase in input costs to its customers. Furthermore, the Company has a robust order book of 54 crores and order bids of 260 crores as of 31st March 2022, recording a YoY increase of 6% and 93%, respectively. With a pickup in industrial activity, positive feelers from its clients on their capital expenditure plans, and an all-time high order book, the Company eyes for a significantly improved FY23 performance. The demand outlook is especially good on the automation front. Clients are increasingly scouting and opting for automated machine cells to improve their production efficiency in an inflationary environment to maintain cost competitiveness. As a result, the Company expects an increase in the share of automated business within the revenue mix. On the operational front, dramatic supply chain disruptions, logistical challenges and volatile input costs persist; however, the Company is better positioned to tide through these challenges. Further, the Company is also strengthening its geographical presence, especially in smaller manufacturing hubs such as Jamshedpur, Nagpur, and Mehsana - where it has appointed dealers. Going forward, the Company plans to pursue sales channels such as the dealer model to further growth in these territories. Other strategic initiatives involve the addition of Defence & PSU business - predominantly an L1- tender driven business, which the Company plans to cater to in the coming years. To conclude, the Company is geared to build on its performance of Q4FY22 and deliver a significantly improved FY23. 40 I MARSHALL MACHINES LIMITED#41Market Statistics Shareholding Pattern IPO Date 41 33% Issue Price 28th August 2018 42 NSE Symbol MARSHALL IPO Subscription 2.2X 67% Shares Outstanding 1.46 Cr ■ Promoters Public Face Value Promoter Pledge 10 NIL MARSHALL MACHINES LIMITED#42Get 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.