Presentation by. Motherson Sumi Systems Limited

Transcription

1 Presentation by Motherson Sumi Systems Limited 29 th June 2010

2 $US Million About Motherson Motherson established in 1975 More than 90 facilities spread over 23 countries Diversified manufacturer with core competency in Assemblies & Polymer processing One of the largest manufacturers of exterior rearview mirrors in the world The largest manufacturer of wiring harnesses and rearview mirrors for passenger cars in India One of the largest manufacturers of molded components and modules in India Driven by over qualified professionals Group Turnover * 2229 ** IT & Design 1.0% Polymer & Tooling 10.8% Group Business Profile Elastomer 2.5% Modules & Systems 2.6% Metal Working 2.6% Mirror 52.2% WH 28.3% * Includes figures of SMR for one month only **Approx Figures 2

3 Business Portfolio FULL SYSTEM SOLUTIONS Wiring Harness Manufacturing Rearview Mirrors Polymer Processing & Tool Manufacturing Elastomer Processing Modules Elastomer Processing IT & Design Engineering Metal Working Manufacturing Support Other Business Wiring Harness Exterior Mirrors Injection Molded Plastic Parts Sunroofs Rubber Injection Molding Software Development Cutting Tools Air Compressors Travel Services High Tension Cords Interior Mirrors Plastic Blow Molded Parts Car HVAC Systems Silicon Injection Molding Design Engineering Bimetal Band Saw Blades Paint Coating Equipment Management Services Battery Cables Mirrors with Integrated Lighting Post Molding Processes Bus Air-conditioning Bonded Rubber Parts CAE Services Precision Metal Machined Components Industrial Robots Agencies Wires Blind Spot Detection Systems Assemblies Lighting & Air Intake Rubber Extrusion CNC Code Generation & Press Die Design Gear Cutting Tools Automotive Manufacturing Engineering Connectors & Terminals Wiring Harness Components Telescopic Trailer Tow Mirrors Tool Design & Analysis Tool Manufacturing Refrigeration Systems Transport & Stationery Cabins for Off Highway Vehicles Rubber Compounding Thin Film Coating Metals Auxiliary Equipment for Injection Molding Machines Environment Management Systems

4 Partners Joint Venture Specialist Specialise in managing manufacturing companies Bring new technologies for customers Acquire tested technologies from collaborators Amalgamation of technologies to provide single window solutions to customers Collaborate with follow-me sources of global OEMs Develop long term relationships Extend relationship to new business areas Existing Partners Japan 13 Germany 5 Australia 1 Korea 2 Italy 2 China 1 Total 24 (Samvardhana Motherson Group) Growing with multiple successful collaborations, oldest being over 23 years 4

5 Group Locations UK Wiring Harness IRELAND Design Engineering GERMANY Plastic Molding Metal Machining Representative Office CZECH REPUBLIC Plastic Molding HUNGARY Presence in 23 Countries with over 90 manufacturing facilities CHINA USA Representative Office SOUTH KOREA MEXICO JAPAN SPAIN FRANCE ITALY Design Engineering BRASIL THAILAND SRILANKA Wires SINGAPORE Strategic Sourcing AUSTRIA Representative Office SOUTH AFRICA Being Established Plastic Molding MAURITIUS Representative Office SHARJAH Wiring Harness Plastic Molding Injection Molding Tools Silicon Rubber Injection Molding AUSTRALIA Rubber Extrusion Waste Recycling Systems Design Engineering

6 Locations in India KANDLA Rubber Injection Molding Wiring Harness GANDHIDHAM Gear Cutting Tools NASHIK Design Engineering MUMBAI / THANE Gear Cutting Tools AURANGABAD Gear Cutting Tools PUNE Wiring Harness Automotive Manufacturing Engineering Sunroofs Automotive Lighting Air Intake Manifolds Plastic Molding & Assemblies Pedal Box assemblies BENGALURU Wiring Harness Wires Plastic Molding & Assemblies Metal Machining PUDUCHERRY Plastic Molding & Assemblies NOIDA & NCR REGION Wiring Harness Wires Fuse Holders Tubes Plastic Molding & Assemblies Rubber Injection Molding IP, Door Trim & Bumpers Automotive Rearview Mirrors Design Engineering Injection Molding Tools IT Solutions Press Die Design Cutting Tools Machining Solutions Thin Film Coating Metals Air Compressors Paint Coating Equipment Auxiliary Equipment for Injection Molding Machines Automotive Manufacturing Engineering Sunroofs Bimetal Band Saw Blades Bus Air Conditioners & Roof Hatches Refrigeration Systems Industrial Robots Sales, Installation & Service Automotive Lighting Air Filters Components & HVAC Systems CHENNAI Wiring Harness Wires Plastic Molding & Assemblies IP, Door Trim & Bumpers Injection Molding Tools Cabins for Off Highway Vehicles Components & HVAC Systems Rubber Molding Sales Manufacturing Upcoming Facility

7 Motherson Sumi Systems Limited Company Established in 1986 and listed in 1993 FIIs,Mutual Funds & Foreign Bodies 16.36% Shareholding Pattern Share Holding Pattern** Public 16.19% SMFL 37.60% Sehgal Family (SMFL* %) : Started Motherson Group in 1975 Started manufacturing Wiring Harness in technical agreement with Tokai Electric Industries, Japan ( a part of Sumitomo Wiring Systems) in 1983 Established Motherson Sumi Systems Ltd. (MSSL) in JV with Sumitomo Wiring Systems Ltd. (SWS) in 1986 Group Turnover over USD 850 Million ( ) Sumitomo Wiring Systems Ltd. (25.87%) : Subsidiary of Sumitomo Electric Industries, Japan Sehgal Family 3.98% SWS 25.87% As on date The third largest Manufacturer of wiring harnesses in the world and the second largest in Asia with current market share about 20 % in the world passenger car market * SMFL : Samvardhana Motherson Finance Limited ** As on 31 st March

8 Vision : To be a Globally Preferred Solutions Provider MSSL is providing Full System Solutions to its customers from product design to tooling, molding, manufacture, assembly and supply of Integrated Modules like IP (Dashboard) and Door Trim Modules MSSL is working with various JV partners on various technological platforms With the acquisition of Visiocorp, the group now owned a technology with strong R&D setup & an extensive portfolio of over 300 active patents 8

9 Leadership Position in Market Other 35% Wiring Harness MSSL 65% # Others 52% Rear View Mirror SMR India 48% Rear View Mirror (Globally) Others 75% SMR 25% 65% Share* of Wiring Harness Market In India for Passenger Cars 48% Share* of Rear View Mirror Market In India for Passenger Cars Approx 25% Share* of Exterior Rear View Mirror Market Globally for Passenger Cars One of the largest supplier of Plastic components & Modules in India * As assessed by the company # MSSL including JV s & Subsidiaries 9

10 MSSL : Targets Set for 2005 & Achievement Targets set for year 2005 in our Annual report of year : To cross Rs Crore (Consolidated) by the year 2005 Attaining Return on Capital Employed of 40% Achieved Rs Crores* *taking full turnover of JVs Achieved Average ROCE of 39% Not to have dependence of over 25% on any one source Largest Customer 27% of total turnover Achieve 30% of sales from global customers 29% of Sales from exports Dividend Payout Ratio 40% Dividend Payout Ratio at 43% for

11 MSSL: Targets Set for 2010 & Achievement Targets set for year 2010 in our Annual report of year : Make MSSL a Billion Dollar Company Achieved 1.5 Billion USD Attaining Return on Capital Employed of 40% Not to have dependence of over 20% on any one source Achieve 60% of sales from global customers Achieved Average ROCE of 22%* Largest Customer 15% of total turnover 70% of Sales from exports Dividend Payout Ratio 40% * Including ROCE generated by SMR in it s first year after acquiring Visiocorp Dividend Payout Ratio at 32% of the consolidated net profit 11

12 Highlights MSSL achieves target of a Billion Dollar Company Consolidated Total Sales up by 158%. Consolidated Domestic Sales up by 42%. SMR in its first full year of acquisition is PAT and PBT positive. Overseas Sales of Rs 4659 crore up by 304% EPS of Rs 6.02 as compared to Rs.4.96 in the previous year

13 MSSL FY10 Consolidated Results (all comparisons with FY09) Figures in Rs./Crore % change Total Sales 6,702 2, % Earnings Before Interest Depreciation & Tax* % Depreciation % EBIT * % Exceptional Expenses / (Income) 43 (90) (-)148% Exchange fluctuation on FCCB (29) % Profit Before Tax % Profit After Tax (Concern Share) % EPS (Diluted) % *without restructuring cost

14 Rationale behind the Acquisition The acquisition process was initiated & supported by all customers Mirrors is synergistic product and brings resourcing value into the Samvardhana Motherson Group s already existing business lines of Wiring Harness, Polymer Processing & Tooling, Elastomer, IT & Design Engineering, Modules & Systems, Metal Working & Manufacturing Support Group presence in leading cost countries Motherson Sumi Systems Ltd (MSSL) had a successful Joint Venture with Visiocorp since 1996 for Indian markets, so the understanding of the Visiocorp operations & work culture was there

15 Performance of SMR since acquisition Q1 Q2 Q3 Q4 EBITD + ve + ve + ve +ve PBT (before restructuring) PBT (after restructuring) - ve + ve + ve +ve - ve - ve + ve +ve PAT -ve -ve -ve +ve 15

16 Consolidated Results of Samvardhana Motherson Reflectec SMR Total Sales 4159 Earnings Before Interest Depreciation & Tax* 236 Depreciation 150 EBIT * 86 Exceptional Expenses/ (Income) 430 Profit Before Tax 107 Profit After Tax (MSSL s Share) 6 Figures in Rs./Crore

17 Safe Harbor Certain expectations and projections regarding future performance of company referred to in this presentation may be forward-looking statements within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at the time of their preparation based on available data and information and are subject to certain future events and uncertainties, which would cause actual results to differ materially from those anticipated in these forward-looking statements. Factors influencing forward looking statements include the operating environment and foreign currency exchange fluctuations. 17

18 Thank You A Relationship Built on Trust