Motherson Sumi Systems Limited

Transcription

1 Presentation by Motherson Sumi Systems Limited 17 th & 18 th September 2009

2 Motherson Sumi Systems Limited Company Established in 1986 and listed in 1993 Sehgal Family (SMFL*- 43.8%) : Shareholding Pattern Started Motherson Group in 1975 FIIs & Mutual Funds 10.6% Public 18.3% SMFL 39.6% 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. (27.2%) : Subsidiary of Sumitomo Electric Industries, Japan Sehgal Family 4.2% SWS 27.3% 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 2

3 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 12 Germany 6 Australia 2 Korea 2 Italy 2 China 1 Total 25 Growing with multiple successful collaborations, oldest being over 23 years 3

4 Business Portfolio Geographical Spread Diversified Global Customer Base Vision 2010 Debt Equity Position 4

5 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 5

6 Business Profile ( ) Rs. in Million Rubber & Metal 8% Mirror 14% * Polymer component 21.60% Rubber/metal machined component& others, 12.60% Rs. in Million 2, Mirrors, , , ,351.6 Polymer 17% Wiring Harness(WH) 61% Wiring harnesses, 65.80% * Includes SMR sales of Rs. 3,117 Million for One Month only 6

7 Leadership Position in Market Wiring Harness Rear View Mirror (Globally) Other 35% # SMR 30% MSSL 65% # Others 70% 65% Share* of Wiring Harness Market In India for Passenger Cars 48% Share* of Rear View Mirror Market In India for Passenger Cars Approx 30% Share* of Exterior Rear View Mirror Market Globally for Passenger Cars One of the largest supplier of Plastic components & Modules * As accessed by the company # MSSL including JV s & Subsidiaries 7

8 Wiring Harnesses Market Leader With over 65 % market share of passenger car wiring harnesses in India Serving a global customer base Strong presence in Europe Two-Wheeler & Material Handling Equipment markets Full Service Supplier with complete in-house design capability More than 20 Manufacturing Facilities Vertical backward integration for critical wiring harness components Partners Sumitomo Wiring Systems, Japan Kyungshin Industrial Co., S. Korea 8

9 Wiring Harness-Backward Integration Backward integration for critical inputs for wiring harnesses such as wires, connectors, terminals, fuses and fuse boxes Direct exports to the customers as well as exporting back to collaborators Over Types of Wiring Harness Produced Annually Over Types of Components Handled in Manufacturing Over 20 Million Wiring Harnesses Produced Annually In-house Facilities Component Design Tool Manufacturing Component Manufacturing Wires Connectors Terminals Fuses & Fuse Boxes Clamps & Binders Wiring Harness Design Process Engineering Grommets & Seals Caps & Sleeves Applicators Jigs Assembly Boards Circuit Boards Material Handling 9

10 Rearview Mirrors Samvardhana Motherson Reflectec, which acquired global rear view mirror business of Visiocorp in March 2009, is one of the largest manufacturers of automotive rear view mirrors in the world First turn signal in exterior mirror First combined power telescopic and power folding mirror Partners The largest manufacturer of mirrors for passenger cars in India Supplying products to nearly every major OEM totalling more than 400 individual programs More than 16 manufacturing locations across the world in growing markets like China, India, Korea, Japan & Mexico Technology leader with over 300 patents and a history of innovations First Blind Spot Detection System Ningbo HuaXiang Electronic Co.,Ltd. China 50:50JV for China Jae Seok Kim Korea 90:10 JV for Korea 10

11 Samvardhana Motherson Reflectec (SMR) Innovation and Technology Leadership First to market SMR offers leadership in technology and styling options First turn signal in exterior mirror (Mercedes-Benz) First interior mirror with multiple functions (Mercedes-Benz) First LIN-bussystem in exterior mirror (Jaguar) First camerabased blind spot detection system First light guide style turn signal (Audi Q7) First side-looker- LED turn signal (Hyundai) First combined power telescopic and power folding mirror (Ford) 11

12 Polymer Processing One of the largest molded parts, assemblies & module supplier to the Indian automotive industry Comprehensive post molding & assembly processes Over 30 Manufacturing Facilities Over 900 injection molding machines Injection molding machines ranging from 5 ton to 3200 tons Over 20 Blow Molding Machines 2K Molding Facilities Global manufacturing, Global supplies Partners Sumitomo Wiring Systems, Japan Balda, Germany Roki Mfg. Co., Japan 12

13 Elastomer Processing Manufacturing processes include Rubber Injection Molding Silicon Injection Molding Rubber Extrusion Rubber Compounding Supporting Collaborator with exports from India Manufacturing parts for the Automotive, Measuring and Control, Medical, White Goods and for other Industrial applications Partner Five manufacturing Facilities U.A.E. and Australia spread over India, Woco Industrietechnik GmbH, Germany 13

14 Metal Working, Modules & Non-Automotive Machined Metal Components HVAC Systems for cars Waste Recycling Systems Specialise in machining of high precision, critical application metal components Manufacturing HVAC Systems for passenger cars Modules including Body Control Modules and Engine Cooling Modules Manufacturing and marketing Aerobin, a home and garden waste containment system Patented technology Areation Product launched in Australia, Europe & Japan Partners ECompost DREMOTEC GmbH & Co. ORCA) Germany Calsonic Kansei Japan E-Compost Australia 14

15 Increasing Content per Car Sunroof B-Pillar Trim Interior Lamp A-Pillar Trim Door Trim Inside Handle Cockpit Fuse Box HTC Wiring Harness Grommets Connectors Air Cleaner Assy. Battery Tray Compressor Net Front Grill Boot CV Joint Headlight Bumper Roof Handle C-Pillar Trim Roof Rail Spoiler Steering Column Cover Fuel Filler Door Back Light Garnish Exhaust Suspension Wheel Hub Cap Outside Handle Exterior Mirror Scuff Plate Box Floor Console Interior Mirror Pedal Box Assembly HVAC Systems * Depictive range only 15

16 Business Portfolio Geographical Spread Diversified Global Customer Base Vision 2010 Debt Equity Position 16

17 Geographical Spread UK Wiring Harness Mirror GERMANY Mirror Plastic Molding Metal Machining Representative Office CZECH REPUBLIC Plastic Molding HUNGARY Mirror Presence in 20 Countries with over 80 manufacturing facilities IRELAND Design Engineering CHINA Mirror USA Mirror Representative Office KOREA Mirror MEXICO Mirror JAPAN Mirror SPAIN Mirror SRILANKA Wires FRANCE Mirror SINGAPORE Strategic Sourcing ITALY Design Engineering AUSTRIA MAURITIUS Representative Office Representative Office SHARJAH Wiring Harness Plastic Molding Injection Molding Tools Silicon Rubber Injection Molding AUSTRALIA Rubber Extrusion Waste Recycling Systems Mirror 17

18 Locations in India KANDLA Rubber Injection Molding Wiring Harness NOIDA & NCR REGION NASHIK Design Engineering PUNE Wiring Harness Plastic Molding & Assemblies Wiring Harness Wires Fuse Holders Tubes Plastic Molding & Assemblies Rubber Injection Molding IP, Door Trim & Bumpers Automotive Rearview Mirrors Design Engineering Components & HVAC BANGALORE Wiring Harness Wires Plastic Molding & Assemblies Metal Machining Being Established PONDICHERRY Plastic Molding & Assemblies Sales Manufacturing MSSL CHENNAI Wiring Harness Wires Plastic Molding & Assemblies IP, Door Trim & Bumpers Automotive Rearview Mirrors Mirror Components & HVAC Rubber Molding Plastic Molding & Assemblies 18

19 Business Portfolio Geographical Spread Diversified Global Customer Base Vision 2010 Debt Equity Position 19

20 Global Customer Base (08-09) MARUTI SUZUKI INDIA LIMITED, 18.6% Others, 42.2% HYUNDAI MOTOR INDIA LTD, 13.6% SEWS Hungary, 8.5% Continental Automotive - Group ( Siemens), 2.2% FORD, 3.6% HONDA SIEL CARS INDIA LTD, 2.3% PIAGGIO & C. spa, 2.7% MAHINDRA & MAHINDRA, 3.1% TATA MOTORS LTD, 3.2% 20

21 Global Customer Base (08-09) SMR* *For the month of March

22 Global Customer Base (08-09) Combined* MARUTI SUZUKI INDIA LIMITED, 16.6% Others, 44.7% HYUNDAI MOTOR INDIA LTD, 13.5% SEWS Hungary, 7.5% Ford, 5.2% General Motors, 2.2% Volkwagen Group, 2.1% PIAGGIO & C. spa, 2.4% TATA MOTORS LTD, 3.1% MAHINDRA & MAHINDRA, 2.7% * Taking one month Sales into consideration 22

23 Export Profile Exports 44% Domestic 56% 23

24 Business Portfolio Geographical Spread Diversified Global Customer Base Vision 2010 Debt Equity Position 24

25 Vision 2010 How Close are we! Make MSSL a Billion Dollar Company Rs. in Million CAGR % Q Q Figures for includes SMR for one Month. Compound Growth Rate over Indian Passenger Car Market : % MSSL Domestic Sales : 26.84% MSSL Sales outside India : 50.71% For the FY : MSSL Growth Rate : 28% MSSL Growth Rate (with out SMR) : 12% SMR Figures ( ) for One Month SMR Figures ( ) for Q1 VML figures ( ) for Q1 25

26 Vision 2010 How Close are we! 60% of our consolidated turnover should cater to the requirements of our customers outside India Domestic Exports Percentage 80% 70% 60% 50% 40% 30% 71% 67% 64% 63% 56% 59% 29% Percentage 80% 70% 60% 50% 40% 30% 29% 33% 36% 37% Target 60% 44% 41% 71% 20% 20% 10% 10% 0% Q Q % Q Q

27 Rs in millions Rs in millions Domestic Vs Export Domestic Sales 16,000 14,000 12,000 10,000 CAGR 26.80% 9,752 12,817 14, ,000 6,000 4,000 2,000-5,582 6,788 3,543 4, Q Q ,000 12,000 10,000 8,000 6,000 4,000 2,000 2,230 CAGR 50.78% 3,367 Export sales 5,524 7,464 11, ,475 9, SMR Figures ( ) for One Month Q Q SMR Figures ( ) for Q1 27

28 Vision 2010 How Close are we! Performance Q1 ( ) Rs in millions Consolidated TOTAL Q Q Growth In Percentage Percentage of Total DOMESTIC , % 29.3% EXPORTS 9, , % 70.7% Total 14, , % 100% Standalone DOMESTIC 2, , % 85% EXPORTS % 15% Total 3, , % 100% 28

29 Vision 2010 How Close are we! Have a customer profile where contribution from any individual customer in our turnover shall not be more than 20% of the total turnover Without SMR With SMR 30% 27% 30% 27% Percentage 25% 20% 15% 10% 23% Target 18% 18% 19% 20% Percentage 25% 20% 15% 10% 23% Target 18% 18% 17% 20% 5% 5% 0% %

30 Focus on Profitability Profit Before Tax 1. Exceptional Items included are: Figure in Rs. Million Profit Before Tax Income Rs. in Million CAGR 22.68% Profit on Sale of Land Exchange Fluctuation On FCCB Impairment of Investment (266 ) (249) - (110) 2. Company provides premium on redemption of FCCB(in case conversion doesn t happen) and exchange fluctuation which is charge to P/L account Exchange Fluctuation Premium on Redemption Total charge to P/L Cumulative till date charged to P/L

31 Focus on Profitability Profit After Tax Figure in Rs. Million 1. The Profit after tax with adjustment in Minority CAGR 20.36% Profit After Tax Interest are as follows: PAT(Profit after Tax) Rs. in Million Less Minority Interest (28) 449 Concern Share EPS

32 Vision 2010 How Close are we! Particulars SMR Three months ended June 30, 2009 June Consolidated Without SMR (Rs. in Million) Consolidated Net Sales/Income from Operations 8,824 5,216 6,017 - Within India 3,22 3,793 3,542 - Outside India 8,502 1,423 2,475 Profit Before Interest Depreciation & Tax Exceptional Income / (Expenses) (171) - - Profit Before Tax (427) Profit After Tax (444) Minority Share (221) (17) (13) Profit After Tax (Concern Share) (223)

33 Vision 2010 How Close are we! Figures in Rs. Million Strive to maintain business ROCE of 40% 1. Significant Capital Expenditure in last 2-3 years Percentage 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 39% 32% 28% 28% 21% Target 40% Standalone Consolidated Full cost on FCCB charged is charged to P/L account 3. Capex for (estimated) : Rs 3000 million to Rs million

34 Vision 2010 How Close are we! Shift our stated dividend policy of 40% payout of the company s profits to 40% payout of the consolidated Profits Target Percentage 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 32% % % 32% 32% %

35 Update on SMR Background : MSSL (51%) along with SMFL (49%) acquired Rear View Business of Visiocorp plc (in administration ) on For this purpose the company has subsidiary under the name Samvardhana Motherson Reflectec & referred to as SMR The purchase consideration is as follows : Payment to administrator : Euro 25 millions ( approx.) Issue of consideration shares : 5 % of SMR having capitalization of Euro 30 millions. Rationale behind acquisition : Acquisition was done on behest of customers Favorable valuation Potential to unlock substantial value under normalized conditions in near future Familiarity with the business Successfully running business in India for more than 13 years Indian Business in partnership with erstwhile Visiocorp since

36 Update on SMR Complete Synergy with the Group : Mirrors is synergistic product and brings resourcing value into the MSSL s already existing business lines of Wiring Harness ( annual buying : Euro 28 millions ), Polymer Processing & Elastomer Opens new markets for MSSL like China, Mexico, USA, Korea, Japan, Spain, France & Hungary Opportunity for Group professionals to take on more responsibilities and increases morale Acquisition of Visiocorp has propelled MSSL in to the worldwide Tier 1 league Present Status of SMR : Results of SMR fully consolidated for first time in June 2009 results SMR achieved EBITDA positive in the first quarter Customers reposed confidence in acquisition New orders received : significant orders of Euro 500 millions to be serviced from 2011 over period of 5 years received from German customers Company s action of restructuring under execution as per plan 36

37 Business Portfolio Geographical Spread Diversified Global Customer Base Vision 2010 Debt Equity Position 37

38 Rs. in Million Debt Equity Position Figures in Rs. Million Cash and Bank Balances Standalone Consolidated , , , , ,380 1,165 1, Standalone(08-09) Standalone(07-08) Consolidated (08-09) Consolidated (07-08) SMR Short Term Long Term FCCB SMR Net Worth 38

39 MSSL Subsidiaries & JV s India Sharjah Europe MSSL 49% VISIOCORP MOTHERSON LTD. 51% MSSL 100% MSSL MIDEAST (FZE) MSSL 100% MSSL GB LTD. (U.K.) 50% 33.3% 33.3% KYUNGSHIN INDUSTRIAL MOTHERSON LTD. 50% KYUNGSHIN INDUSTRIAL CO. WOCO MOTHERSON ELASTOMER LTD. 66.7% WOCO FRANZ JOSEF WOLF HOLDING GmbH WOCO MOTHERSON ADVANCED RUBBER TECHNOLOGIES LTD. 66.7% WOCO FRANZ JOSEF WOLF HOLDING GmbH 40% 49% MSSL 100% SMR BALDA MOTHERSON SOLUTION INDIA LTD. 60% BALDA AG CALSONIC KANSEI MOTHERSON AUTO PRODUCTS LTD. 51% CALSONIC KANSEI CORP. Sri Lanka MOTHERSON ELECTRICAL WIRES LANKA PVT.LTD. 100% 33.3% 51% 78.82% MSSL TOOLINGS LTD.(FZE) WOCO MOTHERSON LTD. (FZC) 66.7% WOCO FRANZ JOSEF WOLF HOLDING GmbH MOTHERSON SUMI WIRING SYSTEM LTD. (FZC) 49% SUMITOMO WIRING SYSTEMS LTD. GLOBAL ENVIRONMENT MANAGEMENT (FZC) 21.18% E-COMPOST PTY LTD. 100% 100% 100% 51% MSSL 78.82% MSSL IRELAND PVT. LTD. (Ireland) MSSL POLYMERS GmbH (Germany) MSSL ADVANCED POLYMERS S.R.O. (Czech Republic) MOTHERSON ORCA PRECISION TECHNOLOGY GmbH (Germany) 49% DREMOTEC GmbH & Co.KG (ORCA) Australia GLOBAL ENVIRONMENT MANAGEMENT AUSTRALIA PTY. LTD. 80% MOTHERSON ELASTOMERS PTY. LTD. 39

40 SMR* Subsidiaries & JV s Asia SMR 51% 90% VISIOCORP MOTHERSON LTD. INDIA 49% MOTHERSON SUMI SYSTEMS LTD VISIOCORP POONG JEONG LTD. KOREA 10% SMR 100% 100% Australia VISIOCORP AUSTRALIA PTY LTD. VISIOCORP TAREE PTY LTD. SMR 100% 100% 100% Europe Visiocorp Hungary Bt Visiocorp UK Ltd. Visiocorp France SA 50% NINGBO VISIOCORP HUAXIANG AUTOMOTIVE MIRRORS 50% SMR 100% USA/ Mexico VISIOCORP USA INC. 100% 100% 100% Visiocorp Espana SAU, Spain Visiocorp Patents Lux Visiocorp Group Services GmbH 100% Visiocorp Verwaltung GmbH 100% 100% VISIOCORP AUTOMOTIVE BEIJING CO LTD. VISIOCORP AUTOMOTIVE YANGCHENG CO LTD. 100% VISIOCORP SERVICIOS SA DE CV, MEXICO 100% 94% Visiocorp Beteillgungs GmbH Visiocorp Grundbesitz GmbH & Co KG *In SMR, MSSL holds 51% & SMFL holds 49% 40

41 Customer Recognition Performance Award Overall Excellence Vendor Quality Awareness Quiz Award Performance Award Part Development Performance Award Incoming Quality Improvement Performance Award VA-VE Performance Award System Audit Performance Award MPS

42 Customer Recognition Best Cooperation Award 2008 National Top Performer for Service Part Supply 2008 Best Vender Award 2007 Supplier of the Year Gold Award 2008 Award for Zero Defect Supplies 2008 Gold Award in Delivery nd runner up in Kaizen Competition organized by HSCI Bronze Level Certification received in Supplier Quality Excellence Process Outstanding Performance in Development for the year

43 Customer Recognition DAIMLER Quality Award 2001 & Global Supplier of The Year Best Vender Award Quality 2007 Best Response to New Part Development 2007 Award for Best performance Supply Chain Management QDC Award 2006 Best Supplier Performance Award 2005 Award For QCDDM (Electrical)

44 Customer Recognition Outstanding Efforts On Quality Improvement 2007 Outstanding Supplier Performance Award 2005 Award for Best Supplier 2006 Award for Outstanding Overall Performance Outstanding Delivery Performance 2009 Award for Outstanding Quality & Delivery 2004 Overall Best Supplier Award Best Supplier for Strategic support Quality Improvement Award

45 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. 45

46 Thank You A Relationship Built on Trust