Minda Corpor oration ion Limit ited Driver Informa mation And Telema matics System (NSE: MINDACORP; BSE: 538962) Analyst st and Invest estor Day Pr Presen esentat ation Safety, Security And Restraint System 28 28 th th Febr bruar ary 2019 Interior System Instrument Clusters Sensors Wiring Harness Locks Door Handles Starter Motors Al & Zn Cutting Parts Plastic Component
Agenda • Strategic ic Overvie view Business Overview and Financials • Marketing and Technology • 2
“Transform and Rise” Mechanica cal Automotive e Mechatronics cs
‘Minda Corporation’ at a Glance ‘Minda Corporation’ at a Glance Safety and Security No of Plant ants: • 4 1958 1958 34 34 Driver Information India: 28 • • Founded by and Telematics Europe: 3 • Late Sh. S.L. Minda Business Interior Plastic South East Asia: 2 • • Found nded Plan ants Verticals Aftermarket North America: 1 • • ~ Rs Rs 33,500 500 Rs 36,587 Rs 587 16,000+ 000+ FY2017-18 Total al No. of Market Turnov over r (Inc nc JV’s) Employ oyees Capi pital alizat zation on mn mn mn mn Peopl ople Minda Corporation is a leading automotive component supplier to Indian and Global OEM’s Note: Market Cap as on 31 Dec 2018 4
Strategic Focus – Growth Drivers Growt owth Drive vers #4 #2 #1 #3 Organi nic Techno nology gy Operati ational nal Excellence nce Inorgani ganic c growth h Increased d content per Upgrada dation of • • Vehicle through higher in adjac acent t areas as legacy produ ducts Quality ty Le Leadershi hip customer engagement New w advanced d • Exports • offerings in non Cost Reducti ction Aftermarke ket legacy produ ducts • 5
We Will Continue to Focus on Enhancing Shareholders’ Wealth 6
Agenda Strategic Overview • • Busin iness s Overvie view and Financia ials ls Marketing and Technology • 7
One of India’s Leading Automotive Component Companies with Global Footprint Revenu nue Breakdown wn 9M FY2019 Diversified produ duct portfolio, global customers, strong manufacturing, and d adv dvanced R&D with six decades of automotive experience By End Market By Geography hy Revenu nue* Rs. 25,934 mn (FY2018) After Passenge South Market r Vehicles East Asia 9.7% 20.8% - Safety, Security & Restraint System 4.8% Europe & - Driver Information & Telematics System Commerci North Business Verticals al America - Interior System Vehicles 26.0% - Aftermarket 31.4% 2-3 Ashok Leyland, Bajaj Auto, CNH, Daimler, Wheelers Hero Moto Corp, , Honda Motorcycle and India 38.2% Scooter India, Mahindra & Mahindra, Maruti 69.1% Key Custome mers rs Suzuki, Suzuki Motorcycle, TVS Motor, Tata Motors, VE Commercial Vehicles, By Busine iness Segme ment nt Volkswagen, Yamaha Motor Inerior Manu anufac facturi ring g 34 Manufacturing facilities strategically Systems Facilities located globally providing support to OEMs 20.8% Safety Security & Advanced Engineering Centre of Electronics Restraint R&D D Capa pabi bilities & Mechatronics in Pune and multiple Systems specialised R&D Centre across India Driver 45.9% Informatio n & Mar arket Cap apitalisati ation on Approx. Rs. 33,500 mn Telematics (as of 31 st December 2018) Systems … * Financials as per IND-AS 8
Robust Growth Rs. Rs . mn mn Revenue EBITDA Net Profit CAG AGR 21.5% 24.4% 27.9% 1,671 30,411 2,920 1,417 2,729 25,934 1,284 23,206 2,102 20,598 1,021 1,887 10.5% 9.6% 9.2% 9.1% 5.4% 5.4% 5.5% 4.9% FY17 FY18 LTM Dec 19 9M FY19 FY17 FY18 LTM Dec 19 9M FY19 FY17 FY18 LTM Dec 19 9M FY19 Notes: • Revenue including Minda Corp Subsidiaries and Joint Ventures for LTM Dec 19 is Rs. 41,592 million IND-AS are applicable to Minda Corporation from 1 st April 2017 with transition date of 1 st April 2016 • 9
Business Vertical Performance Rs. Rs . mn mn Safety Security & Restraint System Driver Information & Telematics System Interior System 14,148 12,158 9,941 10,662 6,321 10,330 8,327 5,449 7,710 4,834 6120 4148 12.3% 12.0% 11.1% 10.4% 10.2% 9.8% 9.9% 9.3% 10.2% 6.3% 3.2% 0.6% FY17 FY18 LTM Dec-18 9M FY19 FY17 FY18 LTM Dec-18 9M FY19 FY17 FY18 LTM Dec-18 9M FY19 Notes: 1. IND-AS are applicable to Minda Corporation from 1 st April 2017 with transition date of 1 st April 2016 2. The above are indicative figures 10
Strong Balance Sheet with Steady Returns Return on Capital Employed d (ROCE) Net Debt/Equity 0.95x 0.81x 17.2% 15.9% 13.9% 0.38x FY17 FY18 Sep-18 FY17 FY18 Sep 18 Note: IND-AS are applicable to Minda Corporation from 1 st April 2017 with transition date of 1 st April 2016 • 11
Consistent Dividend Payout and Ratings Upgrade Minda da Corp Lo Long Term Credi dit rating Consi sist stent Dividend Payou out upgraded by two rating agenci cies s in Listed on BSE and NSE current financi cial year IND AA- 30% 30% Stable le 25% 25% 25% 25% 20% 20% A+ A+ Stable le 12.5% 12.5% 10% 10% 10% 10% 10% 10% FY2015 FY2016 FY2017 FY2018 FY2019* Interim Dividend 12
Agenda • Scheme of Merger 13
Scheme of Merger of Domestic subsidiaries (WoS) Consolidation of 100% Indian The Company has filed the Scheme of subsidiaries will result in a merger with NCLT Delhi and Bengaluru for 1 larger standalone entity merger of domestic wholly owned subsidiaries (WoS) into Minda Corporation (MCL) Synergies from consolidation & cost optimization 2 Entities to be merged into MCL are: Minda Management Services Ltd. • Minda Sai Ltd. • Resulting in unlocking value for Minda Automotive Solutions Ltd. • Stakeholders. Better market 3 Minda Autoelektrik Ltd. • perception Minda Telematics and Electric • Mobility Solutions Pvt. Ltd. Simplified Corporate Structure 4 Present scheme of merger will not result in expansion of equity capital or change in shareholding pattern of MCL 14
Current Group Operating Structure MIND NDA A CORPORA RATION N Promoter stake 64.67% 100% 25% 100% Furukawa Minda Minda Automotive* Minda KTSN Germany 50% Minda VAST Minda Management* 100% Minda Autoelektrik* Minda KTSN 51% Poland Minda SAI* Minda Stoneridge 100% 100% Minda KTSN Spark Minda Foundation Almighty Czech Republic Minda International Telematics* Minda KTSN Legends 100% Mexico Overseas WoS PT Minda Domestic Wos Automotive JV Companies Minda CSR Entity Vietnam *Ent ntities under r present nt sche heme me of merge ger r with MCL 15
Agenda • Minda KTSN Europe 16
European Auto Industry Facing Challenges EU Car Registrat ations ons down n Mont nth h on Mont nth In In Dece cemb mber 2018 2018, the EU passenger car market declined for the fourth month in a row. Last month registrations fell by 8.4%, continuing the downward trend that started with the introduction of WLTP in September. With the exception of Italy (+2.0%), all major EU markets saw demand for cars contract during the last month of the year. 17
Minda KTSN Europe Snapsh shot Minda da KTSN Product ct Portfo folio Manufactures Interior Plastic Products- Cupholder, Glovebox, steering column shrouds etc Marquee Customers including VW, Audi, BMW, Daimler, Porsche and Tier 1 suppliers Cup Holder Steering Column Challenges Impacted by WLTP emission norms, general Industry slowdown, customer concentration High Breakeven point, Increasing input cost, constraint in passing on raw material Seat Panel Glove Box cost to customer Counte termea easu sures To diversify Customer base Focus on cost reduction program Converting fixed cost to variable/semi- Middle Arm Rest variable Oil Sump Strengthening the management team 18
Agenda Strategic Overview • Business Overview and Financials • • Marketin ing and Technology ology 19
Diversified Customer Portfolio Volvo JLR BMW VW Group Yamaha Piaggio M&M Maruti Suzuki Bajaj TVS Ford Tata Motors Ha rle y Davidson Ashok Leyland Renault Hero Nissan Honda 20
Growth Factors / Key Focus Areas / Inorganic Shift from component • Electronification • Growth through new • Premiumization • to module/ geographies, new system supplier KAM for better • products and new Increased focus on • account acquisition & technologies Export & after market Adapting the penetration • changeover from Increasing content • existing technology to Early supplier • per vehicle the new technology engagement for upcoming tech. Increase in market • Integration with EV • share and automated Leverage JV Partners’ • vehicles technology strength 21
Guiding Force - Automotive Mission Plan 2026 22
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