Proud to be part of. Investor presentation

Transcription

1 Proud to be part of. Investor presentation May 2016

2 Overview SMG overview MSSL overview MSSL performance 02

3 The 7.2 Billion USD Samvardhana Motherson Group is one of the world s fastest growing specialized automotive component manufacturing Group, serving OEMs across the globe.. 3

4 Group Overview. Founded in Over 180 facilities globally Presence in 25 countries Balanced exposure to developed and developing markets Customer spread across all vehicle segments 4

5 Where we are today : group business portfolio. 01 Wiring harnesses. 02 Rear view mirrors. 03 Polymers and modules. 04 IT, engineering and design. 05 Metal working. 06 Elastomers. 07 Manufacturing support. A growing portfolio that is diverse and scalable. 5

6 03. CUSTOMER VALUE Trust 04. CUSTOMER RESPONSE Asking Motherson to do more 02. OUTSTANDING PERFORMANCE A relentless focus on QCDDMSES. Return on Purpose 05. INCREASE CONTENT/ VALUE PER CAR Play a bigger part in the success of our customers 01. PURPOSE Proud to be part of the world s most admired companies 6

7 The vision of the Group has been the same all along. Our Group vision. 01 Purpose & Vision To be a globally preferred solutions provider. 7 Photo by Epicantus

8 02 Performance. 08 Quality Costs Design + development Delivery Management Safety Environment Sustainability

9 03 Trust Trust leads to customer-led growth. Trust is the key to our sustainable growth. 1 2 ORGANIC GROWTH of existing businesses 3 INORGANIC GROWTH through strategic acquisitions ORGANIC GROWTH OF ACQUIRED BUSINESS CONTINUOUS NON-LINEAR GROWTH PREFERRED SOLUTIONS PROVIDER Being a customer-led, globally preferred solutions provider, through full system solutions and vertical integration LEADING COSTS Taking costs out of local production by leveraging our emerging market presence globally MULTIPLE SOLUTION SOURCES Motherson makes solutions itself Joint ventures Acquisitions 9

10 03 Trust Some major awards received 10

11 04 Asked to do more Customers asked us to look at what become the acquisition of SMR. Grew by 28 % during the Lehman crisis

12 04 Asked to do more. With SMR, we were connected to all the world s major car makers. And they saw how SMR turned itself around as it became the part of Motherson family Porsche Renault Nissan VW Toyota JLR Mazda Hyundai PSA Suzuki GM Opel Daimler Lamborghini Audi FIAT Honda BMW Ford Seat Aston Martin Investor Presentation May August Photo by Folkert Gorter.

13 04 Asked to do more. That led us to an opportunity to look at Peguform. Which eventually led to the acquisition of what is today SMP Peguform was approximately the same size of the entire Motherson Group. 15

14 05 Growth Increasing content and value per car. Being asked to create more solutions per vehicle, for more customers at more locations around the world. 17

15 360 degrees value creation. We focus on all stakeholders Partner collaborations. 05 Growth Customers success. Community strength. Proud to be part of. Investor value. 15 Employee lives.

16 Overview SMG overview MSSL overview MSSL performance 16

17 MSSL business portfolio Polymer & Tooling Rear View Mirrors Polymer & Tooling* 56% Interior & Exterior Polymer modules Rear view mirrors* 28% Wiring Harnesses Wiring Harness* 16% Polymer components & Tool Manufacturing Elastomer Processing, Precision Metal Machining & Others Elastomer, metal & Others* <1% *For

18 01 Wiring Harness Market leader with over 65% market share of passenger car wiring harnesses in India Serving a global customer base through manufacturing bases spread across India, Middle East, Europe, Sri Lanka, Thailand, Japan and Mexico Strong presence in Europe two-wheeler and material handling equipment markets along with commercial vehicle segment in USA Full service supplier with complete in-house design capability, design validation and lab testing which enables SMG to provide complete design support to its customers Vertical backward integration for critical wiring harness components JV PARTNERS Sumitomo Wiring Systems, Japan; Kyungshin Corporation, South Korea 18

19 01 Wiring harness global locations 19

20 02 Rearview Mirrors Samvardhana Motherson Reflectec (SMR), which acquired the global rear view mirror business of Visiocorp in March 2009, is a leading manufacturer of automotive rear view mirrors in the world Presence in India since 1996 through initial JV with Britax, which later on became a part of Visiocorp Supplying products to the top ten OEMs, totalling more than 360 individual programmes 24 manufacturing plants across the world in growing markets like China, India, Korea, Brazil and Mexico Technology leader with over 600 patents and a history of innovations Leading global player with approx. 22% market share of global passenger car rear view mirror market, and a 53% share in India JV PARTNERS Ningbo HuaXiang Electronic Co. Ltd., China; Poong Jeong Ind Co. Ltd., South Korea 20

21 02 Mirror division global locations AUSTRALIA 21

22 03 Polymer processing One of the largest moulded parts, assemblies and modules suppliers to the European automotive industry through Samvardhana Motherson Peguform (SMP), acquired in November 2011, and to the Indian automotive industry through polymer division Motherson Automotive Technologies and Engineering (MATE) Over 55 manufacturing facilities across the globe Over 1,500 machines of injection, gas, compression and blow moulding Injection moulding machines from 5 tons 4000 tons (hydraulic / electric) Complete in-house post processing facilities, including paint shop Robotic trimming / welding (heat stake/ ultrasonic/ vibration) operations LPI injection moulding JV PARTNERS Sumitomo Wiring Systems, Japan; Vacuform 2000 Pty Ltd, South Africa; Changshu Automobile Interior Decoration Co. Ltd., China; Blanos Partners S.L., Spain; Nippon Pigment (S) Pte. Ltd., Japan; Toyota Tsusho Corporation, Japan; Eissmann Automotive, Slovakia 22

23 03 Polymer division global locations 23

24 04 Elastomer Processing & other Business Elastomer processing Machined Metal Components Environment Management Systems Manufacturing facilities in India and Australia Manufacturing processes include: Rubber extruded components Rubber Mixing Injection & Compression Moulding Capabilities Rubber Compounding Manufacturing parts for the automotive and for other industrial applications Specialise in machining of high precision, critical application metal components Also manufacturers high precision metal turning and plastic metal combined parts JV PARTNER Dremotech GmbH & Co. Kg Gemrnay Manufacturing and marketing Aerobin, a home and garden waste containment system Patented Aeration technology Product launched in Australia, Europe & Japan JV PARTNER Ecompost, Australia 26

25 Customer-wise sales* Largest customer 3% Porsche 3.9% Others 24.5% 3.4% 5.3% 23.1% 5.4% 5.1% 5.8% % 4.9% 5.8% 11.7% 7.8% Audi 19.6% Volkswagen 9.8% Seat 7.0% 3CX15 Working on a policy to balance and grow the business in such a way that no Single customer Single country Single component should constitute more than 15% of the turnover Ford 5.9% Hyundai 5.9% BMW 6.5% Daimler 6.6% 25

26 1995 was the start of 5 year plans. Analysts requested to announce them publically Since 2000 MSSL gives 5-year guidance Formulating clear 5-year objectives. 26

27 5 year plans - consolidated net sales 3X $ 18 bln. targeted achieved 3.6X 5X 3X 7X 5X 9X 5X $ 5.5 bln. $ 5 bln. $ 1.5 bln. INR 59 cr. INR 153 cr. INR 100 cr. INR 1,029 cr. INR 1,000 cr. $ 1 bln All numbers are computed based on published rupee numbers and are rounded off. 27

28 5 year plans - Sales from outside India targeted achieved <1% 85% 28

29 5 year plans - Return on Capital Employed (ROCE) standalone 39% 37% 41% 40% Targeted 40%. Excluding Acquisitions done post announcement of Vision % consolidated 22% 26%

30 Other 5-year targets targeted achieved Dividend payout ratio 40% target. 43% 44% s 32% c 62% s 37% c Global presence in countries. Largest customer contribution. 27% 15% < 25% < 20% 25 countries 3CX S : Standalone, C : Consolidated 30

31 Vision 2020 Our 5th five-year plan $ 18 billion % ROCE (consolidated) CX15 40% of consol. profit as dividend. 31

32 Overview SMG overview MSSL overview MSSL performance 32

33 Group structure Public and Others Sumitomo Wiring Systems (SWS) (Japan) Sehgal Family Sojitz Corporation Employees 34.5% 25.6% 3.0% 90.3% 6.5% 3.2% Motherson Sumi Systems Limited (MSSL) 36.9% Samvardhana Motherson International Limited (SMIL) Other JVs and subsidiaries 51%* 49%* Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV) (Netherlands) 98.5% Samvardhana Motherson Reflectec (SMR) 100% Samvardhana Motherson Peguform (SMP) *Shareholding held indirectly as on 31 st March 2016 not a legal structure 33

34 Returns to shareholders through consistent value creation 2,060 x 268 x IPO 8 x 85 x Capital Value Cumlative Dividend Total value Rs. 2,500 invested in MSSL IPO will be worth Rs. 4,961,756+ cumulative dividend of Rs. 188,763 = 2,060 times * of the original investment value * At closing rate of 17 th May 2016 Investment value in Rupees 34

35 MSSL sales and milestones (Rs. in Million) Current* market cap. USD 5.73 Bn 400,000 Consolidated 380, , , MSSL listed on the stock 1986 exchange 100,000 Incorporated as a joint venture ,276 20, ,103 1,145 1,157 1,530 2,304 2,965 4,188 5,899 7,812 10, First five-year plan First publicly announced five-year plan Visiocorp acquisition to form SMR , Peguform acquisition to form SMP. 81,756 67, , , , , * As on 17 th May 2016

36 Financial performance CONSOLIDATED SALES CAGR 33.6% (Rs. in Million) New orders worth Euro 8.8 billion during at SMRP BV (including Euro 6.07 Bn orders declared earlier during the year). 303, ,903 52,590 10% $ 5.7 Bn 380,335 57,114 Total order book of Euro 13.5 billion at SMRP BV 252,253 45,672 47,275 $ 1.5 Bn 67,022 20,431 81,756 32, ,022 38, , , , , ,221 46,591 49, Outside India Within India Total 36

37 Financial performance PAT, DIVIDEND PAYOUT AND DIVIDEND PAYOUT RATIO (consolidated) 14,000 12,000 10,000 8,000 6,000 4,000 2,428 32% 32% 3,908 Acquired Peguform in Nov 11, exceptional expenses & MTM on long term loans 2,596 40% 4,445 31% 7,650 34% 2,580 8,625 37% 48% PAT 3,184 (Rs. in Million) 12,737 30% 3,775 40% 35% 30% 25% 20% 15% 10% 2, ,239 1,034 1,376 5% % PAT Dividend Payout Dividend Payout Ratio 37

38 Financial performance TOTAL EQUITY, NET DEBT AND EBITDA* Acquisition of Peguform in Nov 2011 (Debt fully consolidated) 56,867 (Rs. in Million) Net debt is equivalent 60,000to 1.16 X EBITDA 41,466 43,096 39,336 37,489 43,381 44,059 38,025 45,000 18,363 23,744 26,915 19,092 28,678 32,402 31,952 30,000 13,676 6,692 4,749 9,075 10,627 15,000 9, Total Equity (including minority) Net Debt EBITDA * Excluding other income and exchange fluctuations 38

39 Financial performance Return of Average Capital Employed (ROACE) 37% 22% First year of consolidation after Visiocorp takeover 36% 27% 30% 15% Peguform Acquisition 35% 18% First full year of consolidation after Peguform takeover 39% All Time High ROCE for Standalone at 43% 41% 36% 43% 26% 26% 27% Completed three acquisitions in Excluding acquisitions done post announcement of Vision Consolidated ROACE Standalone ROACE ROCE for SMR at 42%, achieved More than 40% ROCE for first time 39 For 15-16

40 Samvardhana Motherson Reflectec (SMR): Performance since acquisition (Euro in Million) GROWTH= 93 % (w.r.t ) Net sales** EBITDA # / % to sales** GROWTH = 191 % 14% (w.r.t ) 23% 1, ,276 1, % 9.8% 10.5% 7.0% 6.5% 5.7% 5.0% EBIDTA % to sales 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% **At exchange rate used for translation, please refer to note on last slide. # Before exchange gain / loss on long term loans 40

41 Samvardhana Motherson Peguform (SMP): Performance since acquisition (Euro in Million) 677 GROWTH= 44 % (w.r.t ) 1,826 Net sales** 1,917 2,222 18% 2, * % 9 GROWTH = 170 % (w.r.t ) 3.8% EBITDA # / % to sales ** 5.5% % % 7.1% % 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 9 0.0% * Reported EBITDA Startup cost Adjusted EBITDA % to sales * For 4 months as the acquisition was done on 23 rd Nov 2011 * For 4 months as the acquisition was done on 23rd Nov 2011 **At exchange rate used for translation, please refer to note on last slide.. # Before exchange gain / loss on long term loans 41

42 Net Debt Acquisition of Peguform in Nov 2011 (Debt fully consolidated) Net debt is equivalent to 1.16 EBITDA (Rs. in Million) 41,476 43,106 39,349 32,402 44,059 38,025 40,000 28,678 31,952 30,000 20,000 19,091 10,627 10,000 Exchange rate used Net Debt EBITDA Rs/Euro Rs/USD

43 Safe harbour This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. Thank you. Note : ** SMR & SMP prepares financial statements in Euro currency, hence comparative data is given in Euro terms. These results are consolidated in MSSL by using average exchange rates..