H1 / Q2-FY22

EARNINGS PRESENTATION

Value Proposition of Onward Tech

The Power of One

  • Agile, diverse, global team of 2250+ employees
  • 13 Offices in 6 countries for customer proximity
  • Capacity expansions based on Customer requirements planned in India centers in FY22

Global 2000 customers

  • 6 of global top-10 automotive companies
  • 5 of global top-8 heavy machinery companies
  • Strong customer base and relationships to fuel double digit growth in top line

Digital play across all lines of business

  • Mechanical Engineering
  • Electronics and Embedded
  • Digital Transformation
  • Enterprise IT

2 Focused industry verticals

  • Transportation & Mobility
  • Industrial Equipment & Heavy Machinery
  • Diversification and investment in 2 high- growth verticals: Healthcare & Medical Devices, Hi-Tech

Strong Financial Turnaround

Revenue (INR Mn) & EBITDA Margin (%)

2,610 2,715 2,404

8.58%

8.58%

7.20%

1,425

3.72%

FY19

FY20

FY21 H1-FY22

H1-FY22 Segmental Revenue

Digital 8%

ITS, 21%

ER&D,

71%

H1-FY22 Segmental Revenue

Geared for double-digit growth

  • Young leadership team from tier-1 companies
  • Focused on growing existing top-25 accounts
  • Margin expansion through India advantage (talent pyramid, costs)
  • Net debt-free, sound balance sheet & cash reserves
  • 5-yearPAT CAGR at 18.16%
  • 6-yeartrack-record of consistent dividend payout

Healthcare 7%

Others 21%

Industrial Equipment &

Transportaion &

Heavy Machinery 46%

Mobility, 26%

2

Who We Are - Some Key Milestones

  • Pune city chosen for expanding operations
  • Engineering Design Services became the mainstream focus of the company
  • Built a dedicated ODC in Pune for one of the company's top 5 customers
  • ISO 9001 and ISO 27001 certification for Pune Center
  • Expansion in Europe by incorporating a wholly owned subsidiary in Germany & Branch office in
    UK

1991

-

2000

2001

-

2010

2011

-

2020

  • Mr Harish Mehta founded Onward Technologies in 1991
  • An independent 50:50 Joint Venture formed with Novell Inc (Onward Novell Pvt. Ltd).
  • Listing on Stock Exchange in India in 1995
  • Mr Harish Mehta awarded CEO of the year in 1996 by World HRD Congress in India
  • Expanded footprint in North America by incorporating a wholly owned subsidiary in USA
  • Mr Jigar Mehta appointed Managing Director in May 2016
  • Set up multiple ODCs in Pune & Chennai for American & European clients
  • Mr Harish Mehta awarded by Prime Minister Narendra Modi for his contributions to the IT Industry
  • Investments made in Embedded & Electronics, and Digital capabilities
  • Expansions planned in India (Bengaluru & NCR) as well as in North America & Europe

3

Strategic Presence Across Geographies

Cleveland

Chicago Troy

Toronto

HQ

Offshore Development Centre

Office

Strategic presence across geographies

Stockholm

London

AmsterdamFrankfurt

Paris

Tokyo

NCR

Pune

Mumbai

FY21 Revenue Breakup - Client Location

Bengaluru

Hyderabad

India

USA

53%

36%

Europe UK 5% 6%

6 Of global top-10 automotive companies

5 Of global top-8 heavy machinery companies

4

Growth Strategy Enablers

FY 2021

Top 10

Customers

(45%)

Top 11-50 Customers

(41%)

Remaining Customers

(14%)

Digital 2%

ITS

26%

ER&D

72%

Pivot to digital engineering services

  • Invested in the digital maturity curve of our customers
  • See a clear roadmap of growth in digital budgets
  • Witnessing a shift from POC to adoption at scale
  • Core areas include Industry 4.0, AI/ML, ADAS, cloud and DevOps

Growth in top-accounts

  • Suitably positioned to scale up TCV from top-25 clients
  • These accounts are part of Global 2000, projecting large R&D allocations
  • Growth/technology-partnerstatus is several accounts
  • Focused on long-duration contracts, recurring revenues, consistent billing growth

Focused verticals and structured LOBs

  • Leadership team with a strong experience across verticals
  • Focus on Transportation & Mobility, Industrial Equipment & Heavy Machinery
  • Hi-Tech,Healthcare & Medical Devices unlock new, high-growth areas
  • Digital play across all lines of business

People, policies, and performance

  • Continue to upskill, hire the finest talent in digital engineering
  • Agile operations with steadily increasing offshore leverage driving margin expansion
  • HR policies, growth opportunities tuned to enhance career path
  • Benefits aligned with industry standards

TARGET FY2025

Top 10

Customers

(70%)

Top 11-50 Customers

(20%)

Remaining Customers

(10%)

Digital

Transfor

ER&D

mation

50%

50%

5

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Disclaimer

Onward Technologies Ltd. published this content on 25 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 12:45:03 UTC.