Академический Документы
Профессиональный Документы
Культура Документы
to be
part of.
Corporate Presentation
August 2016
Disclaimer
This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an offering memorandum, an advertisement, an offer or an offer document under
the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable
law in India.
This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue or an offer, or any
solicitation of any offer, to purchase or sell any securities. This presentation should not be considered as a recommendation that any person should subscribe for or purchase
any securities of Motherson Sumi Systems Limited with its subsidiaries and the promoter companies/entities of Motherson Sumi Systems Limited (collectively, the Group) and
should not be used as a basis for any investment decision.
The information contained in this presentation is only current as of its date, unless specified otherwise, and has not been independently verified. Please note that, you will not
be updated in the event the information in the presentation becomes stale. You must make your own assessment of the relevance, accuracy and adequacy of the information
contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. Moreover, no express or implied
representation or warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this
presentation. Further, past performance is not necessarily indicative of future results. Any opinions expressed in this presentation or the contents of this presentation are
subject to change without notice. The presentation should not be construed as legal, tax, investment or other advice.
None of the Group or any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented or
contained in this presentation. Furthermore, no person is authorized to give any information or make any representation which is not contained in, or is inconsistent with, this
presentation. Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized by or on behalf of the
Group.
The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any persons in possession of this presentation should inform themselves about
and observe any such restrictions.
This presentation contain certain statements of future expectations and other forward-looking statements, including those relating to the Group's general business plans and
strategy, its future financial condition and growth prospects, and future developments in its sectors and its competitive and regulatory environment. In addition to statements
which are forward looking by reason of context, the words may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential or continue
and similar expressions identify forward- looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results,
performances or events to differ materially from the results contemplated by the relevant forward looking statement. The factors which may affect the results contemplated by
the forward looking statements could include, among others, future changes or developments in (i) the Groups business, (ii) the Groups regulatory and competitive
environment, (iii) the information technology service sector, and (iv) political, economic, legal and social conditions in India and the United States. Given the risks, uncertainties
and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.
The information contained herein does not constitute an offer of securities for sale in the United States or in any other jurisdiction. Securities may not be offered or sold in the
United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.
Founded in 1975
Asked to do more:
FOCUS ON RETURN ON INCREASE
CONSISTENT PURPOSE CONTENT/ Leverage trust to enable greater client engagement
OUTSTANDING VALUE PER
Sole supplier status and R&D collaboration
PERFORMANCE CAR
Increase content/value per car: Trust and increased
engagement to drive cross-sell
PROUD TO BE
PART OF WAY Pride in purpose/way of life: Sustainable value
OF LIFE (PURPOSE) creation, fuelling top and bottom line as well as the de-
risking
Note:
1 Quality, Cost, Delivery, Development, Management, Safety, Environment and Sustainability
2 In select product segments
US$
Consolidated INR INR 1bn US$ US$ US$
333 333 333
sales1 10,000m 10,290m2 (from ~US$ 1.5bn3 5bn3 5.5bn3
235m)3
Contribution
from individual <25% 27% 33 <20% 15% 333
customers
Return on capital
40% 39% s 33 40% 37% s 33 40% 41% s 33
employed5, 6 22% c 26% c
Dividend
40% 43% 333 40% 44% s 33 40% 62% s 33
payout ratio5, 7 32% c 37% c
Public Indian One of the largest moulded parts, assemblies and modules
34.4% promoters suppliers to the European automotive industry as per LMC 55%
40.1%
Automotive1
Modules and One of the leading modules suppliers to the Indian automotive
polymer industry
products Revenue share (%)4, 6
525 facilities across 14 countries
Sumitomo Wiring
Systems Key products:
25.6%
Bumper Module Door panel
380,335
2011
344,903
Peguform
acquisition
to form
2000 303,580
2009 SMP
Five-year
Visiocorp
plan
acquisition
announced
to form 252,253
SMR3
1993
MSSL listed
on the
stock
exchange
1986 147,022
Incorporated as
a joint venture
1975
SMG was
formed 81,756
67,022
25,956
15,276 20,281
7,812 10,155
na na 301 592 956 1,103 1,145 1,157 1,530 2,304 2,965 4,188 5,899
FY75 FY86 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
1
MSSL revenue
Notes:
1 Sales considered is sales of products including traded goods (net of excise) and represents standalone from FY75 to FY01 & consolidated from FY02 onwards
2 As on 18th August 2016 (INR/US$: 66.7939 based on RBI reference rate and closing share price of INR334.70)
3 Samvardhana Motherson Reflectec
Daimler VW
Maruti Suzuki
Toyota
Supplier of the year Zero PPM Award PPM Performance Certificate of Recognition in
Golden Award the area of Value Analysis
GM Honda Cars
Supplier of the year Supplier Quality Best Practice Silver Award for Recognition for
Excellence Award Recognition Quality of spares valuable contribution
Vendor Performance
Award in the field of
Best Quality Valuable Contribution in development Annual Commodity Special Cost
Performance Award of KUV100 & TUV 300 Award Reduction Support
Best Supplier Best Vendor Quality Special Citation of Chairmans Award Q.C.R.P.M Supplier
Quality Rating Supplier Distinction Special Citation of Distinction Performance
Partners in Preferred Business Award of excellence for support in Supplier of the Year Quality
Excellence Partner aggressive Indigenization Performance Rank 1
1
Consolidating leadership position across product segments with strong
relationships with major automotive OEMs
2
Global footprint and diversified customer base
3
Increasing content value per car
4
Consistent value addition through growing historical and acquired
businesses
5
Strong financial position
6
Demonstrated R&D capabilities and a track record of innovation
7
Robust strategy for disciplined global expansion and diversification
8
Experienced board and management team
By product
Maruti
Hyundai
Mahindra
Honda
Toyota
Renault
Tata Motors
Ford
Note:
1 Sales to Hyundai through joint venture, Kyungshin Industrial Motherson Ltd.
By product By region
Instrument Door
Customer Mirrors Bumpers panels panels Europe Americas Asia
Audi
BMW
Ford
GM
Hyundai / Kia
No vehicle
JLR production
in Americas
Mercedes
No vehicle No vehicle
Porsche production production
Renault
No vehicle No vehicle
Seat production production
VW
SMRP1 order book (bn)2
Long term collaborative relationships with 14 of the top 15 global 13.5
OEM groups 10.8
Strong presence in premium segment 7.7
High repeat business based on OEM relationship, collaborative R&D
and footprint in customer proximity and prior operating track record
Diversified customer sales1 Local presence in all major vehicle production regions
FY 2016
Audi
Region Number of facilities
Other 20%
25%
FY 2014 Americas 18
21% 20%
Europe 36
2% Volkswagen
10%
India 67
Porsche 5%
4%
19% ROW 29
6%
Maruti
5% 5%
Seat Total 150
6% 6% 7%
Renault 7% 3%
Nissan
5%
Ford Daimler
6% 7%
Hyundai BMW
6% 7% P Global footprint, aligned with that of customers provides competitive
advantage
ability to supply to global platforms locally
Long term collaborative relationships with 14 of P Customer proximity with production sites near OEM assembly plants
the top 15 global OEM groups delivery on Just-in-time" and "Just-in-sequence basis
Average relationship with 7 OEM customers of 40 efficient inventory management
years
high switching costs for customers
P Modern facilities with high level of automation
Notes:
1 Excludes sales of services and other operating revenue of INR3,617m for FY'16 and P Continued investment in the footprint to service growing order book
INR700m for FY'14
2 Includes subsidiaries and joint ventures
Cater to US and
Mexican Agri and
commercial vehicle
Supplier to Two
harnesses market
Wheelers,
UK Commercial
vehicles, agri and
material handling
equipment
USA Japan
Supplier to Passenger
Vehicles, Commercial
Vehicles, 2- Wheelers,
Agri & Construction
Equipment and Group
companies
Manufacturing footprint for wiring harnesses
SMR division
SMP division
Wiring Harness Cockpit Bumper Frontend Module Door Trim Extruded Plastic
Parts
Fuse Box
Spoiler
Junction Box
Tail Gates
Grommets &
Rubber Parts Outside Handle
Battery Tray
Box Floor Console
Exterior Mirror Interior Mirror HVAC Systems Compressor Body Control Module Vehicle Electronics
3.2
Reflectec 2.4 6.5%
(SMR)1,3 4.7%
10.9 11.8
FY201316 CAGR: 35.0%6
8.5
Samvardhana
4.8
Motherson 1.1
10
5.5%
6.3% 6.2%
Peguform 3.8%
(SMP)2,4 - - 2.5%
10.8
Organic growth
Notes:
1 SMR means Samvadhana Motherson Reflectec Group Holdings Limited including its subsidiaries excluding Samvadhana Motherson Innovative Autosystems Holding Company BV, Samvardhana Motherson
Innovative Autosystems de Mexico, S.A. de C.V., SMP Automotive Systems Alabama Inc. and plant at Kecskemet of SMR Automotive Mirror Technology Hungry Bt..
2 SMP means Samvardhana Motherson Automotive Systems Group B.V. (SMRPBV) excludes SMR defined above
3 Revenue considered in the calculation of EBITDA Margin for SMR is Revenue from operations (net) and is before knocking off transactions between other group companies
4 Revenue considered in the calculation of EBITDA Margin for SMP is Revenue from operations and is before knocking off transactions between other group companies
5 Revenue considered in the calculation of EBITDA Margin for Standalone is Revenue from operations (net)
6 CAGR is calculated as compounded annual growth rate over the respective periods
7 EBITDA for SMR and SMP is defined as Profit Before Finance Cost, Depreciation , Exceptional Items and Tax (PBIDT) excluding foreign exchange fluctuation on long term borrowings and consolidation
adjustments
8 EBITDA for standalone is defined as Profit Before Finance Cost, Depreciation , Exceptional Items and Tax (PBIDT) excluding foreign exchange fluctuation on long term borrowings and dividend income
9 EBITDA Margin has been calculated as EBITDA / Revenue
10 For 4 months as the acquisition was done on 23rd Nov 2011
Cumulative Dividend 1,040 2,990 5,802 8,052 11,428 27,205 83,399 111,876 188,763
188,763
2,914,861
1,466,732
537,384
FY94 FY98 FY01 FY03 FY04 FY05 FY08 FY13 FY14 FY16
Note: Investment value in Rupees
1 At closing rate of 12th Aug 2016
2 100 shares at IPO are equivalent to 17,085 shares currently as a result of corporate actions including 7 bonus issuances and 2 stock splits
500
(INR bn)
India CAGR: 11.9%2, 3 CAGR: 37.3%
(INR bn)
50.0 11.0%
450 Rest of the World CAGR: 31.2%2, 3 38.4
Overall CAGR: 26.9%2 40.0 32.5 10.0%
28.9 10.0% 9.0%
400 386.9 30.0 9.4%
19.3 9.5% 8.0%
350.3 20.0
10.8 7.0%
350 7.6%
10.0 7.3% 6.0%
307.2
300 0.0 5.0%
FY12 FY13 FY14 FY15 FY16
256.2
250 EBITDA
4
EBITDA Margin
5
84.2%
200 84.7%
(INR bn)
87.3% CAGR: 48.7%
149.1
150 83.2% 20.0 3.3% 4.0%
15.0 2.5% 2.5% 12.7 3.0%
100 73.8% 1.8% 1.8%
10.0 7.7 8.6 2.0%
50 4.4
5.0 2.6 1.0%
26.2% 16.8% 12.7% 15.3% 15.8%
0 0.0 0.0%
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
India Rest of the World PAT
6
PAT Margin
7
(INR bn)
25.0 20.2
120.0 5.0 18.4
3.9 20.0
90.0 4.0
13.5
44.1 3.0 15.0 10.3 10.9
60.0 2.2 39.3 32.4 10.0
41.5 43.1
1.4 1.0 1.1 2.0
30.0 56.9 1.0 5.0
26.9 37.5 43.4
23.7
0.0 0.0 0.0
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Capex 4
Total Equity Net Debt Net Debt / EBITDA
Debt maturity profile5 ROCE (%)6
(INR bn)
24 Investor Presentation
Corporate August
Presentation 2016
August 2016
24
Demonstrated R&D capabilities and a track
6 record of innovation
1
Motherson Innovations Overview Intelligent Electronic Mirrors
Increasing R&D focus on likely disruptive trend towards
Highest quality displays for best visibility
autonomous driving
and augmented information
Solutions for enhanced safety, ergonomics, performance
and aesthetics
New, proprietary digital image processing technology underpinning Specialized high-performance cameras
introduction of new high value solutions and expertise for package solutions
Intelligent Electronic Mirrors (currently being legalized in
many countries) Integrated intelligence for object detection
New generation camera system and lane recognition
Advanced driver assistance features
Currently holds approximately 900 patents Display integration by interior specialist SMP
2 3
Automotive Innovation Advanced Materials and Surfaces
Telescopic Mirrors
Digital Cockpits
5YP
1
VISION 20201
6 2
Retain and strengthen
Support customers through
01 strategic acquisitions while
technological leadership
through continued focus on
US$18 billion maintaining financial
R&D, innovation and
discipline
FY19-20 collaboration
02
40% ROCE 5 3
(consolidated) Continue disciplined global
Drive further efficiency and expansion and diversification
continue to improve cost through selective
03 base and capex efficiency investments backed by new
3CX15 orders
(individual customer,
component or country to have
revenue contribution of <15%)
4
04
Increase customer
40% of consol. penetration and
profit as dividend diversification
Note:
1 These numbers are the vision/aspirations of the Company and not projections that should be relied on
Customer diversification
Deepening customer bond
No single customer dependence
Geographical diversification
Product diversification
Presence in 6 continents including
Diversified product range developed and emerging
Increasing content per car economies
3CX15
Product innovation
No customer,
country,
component,
should contribute
more than 15% of
Manufacturing diversification our business Technology diversification
Alternate manufacturing options Investing in future technologies
with 150 facilities across 6
continents
Standardised operations across all Currency diversification
plants enable easy switchover
Manufacturing and sales in same
currency regions gives natural hedge
Pass through arrangements for
major fluctuations
Board
Founding family Sumitomo Wiring Systems Professionals Independent Mr. Vivek Chaand Sehgal
has 41 years of industry
Vivek Chaand Sehgal Toshimi Shirakawa Pankaj Mital Sushil C. Tripathi
experience, since the
Chairman Director Whole-time Director/ Independent Director
COO establishment of
Motherson in 1975
Laksh Vaaman Sehgal Noriyo Nakamura Arjun Puri
Director Director Independent Director
Customers Investors
Employees Society
Appendix
Consolidated Q1 FY2017 results
(INR bn)
8 8.0 9.0%
103.5
6 9.0% 8.5%
100 8.9%
89.2 4 8.0%
2 7.5%
80 0 7.0%
2016 Q1 2017 Q1
3 4
60 EBITDA EBITDA Margin
88%
88%
40 3.2 6.0%
3.0
(INR bn)
2.7 5.0%
32 Investor Presentation
Corporate August
Presentation 2016
August 2016
32
Standalone Q1 FY2017 results
(INR bn)
16 3.0 23.3% 25.0%
YoY: 18.6%
18.8%
14.0 20.0%
14 2.8 2.7
15.0%
16% 2.6
11.8 10.0%
12 2.6
5.0%
17%
10 2.4 0.0%
2016 Q1 2017 Q1
3 4
8 EBITDA EBITDA Margin
6 84%
(INR bn)
2.0 1.6 15.0%
83% 1.4
4 13.6% 10.0%
1.0 10.3%
2 5.0%
0 0.0 0.0%
2016 Q1 2017 Q1 2016 Q1 2017 Q1
5 6
Within India Rest of the World PAT PAT Margin
33 Investor Presentation
Corporate August
Presentation 2016
August 2016
33
Standalone financial performance
CAGR: 16.1%
(INR bn)
(INR bn)
60 10.8
CAGR: 10.8% 12 22.0%
9.4 9.4
55.1 10 8.1
20.7% 20.4% 19.0%
50.6 8 6.0
50 18.8% 18.9%
6 16.0%
46.2 15% 16.7%
4
43.9 15% 13.0%
2
40 15% 0 10.0%
13%
36.6 FY12 FY13 FY14 FY15 FY16
3 4
14% EBITDA EBITDA Margin
30
CAGR: 22.4%
8 7.1 16.0%
(INR bn)
85%
20 85% 14.0%
85% 6 5.4 5.1
87% 4.7
86% 13.4% 12.0%
4 3.2
10.9% 11.8% 10.3% 10.0%
10 2 8.9% 8.0%
0 6.0%
FY12 FY13 FY14 FY15 FY16
0 5 6
PAT PAT Margin
FY12 FY13 FY14 FY15 FY16
34 Investor Presentation
Corporate August
Presentation 2016
August 2016
34
Standalone financial performance
(INR bn)
28.0 1.5 1.8 4.0 3.6
4.8 3.1
7.4 3.9 1.5 3.2
21.0 8.6
9.2 1.2 2.4 2.0
14.0 0.9 1.5 1.6
1.1 1.6
0.8 0.4 0.4 0.6
7.0 0.8
0.3
12.9 16.2 19.1 21.0 24.4
0.0 0.0 0.0
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
Total equity Net Debt Net Debt / EBITDA
Sumitomo Wiring
Public and Others Systems (SWS) Sehgal Family
(Japan)
51% 49%1
Other JVs
and
subsidiaries
98.5% 100%