Motherson Sumi Systems Limited

Transcription

1 Presentation by Motherson Sumi Systems Limited January 2008 Together we make it happen

2 Motherson Sumi Systems Limited FIIs & Mutual Funds 10.3% Public 18.6% Shareholding Pattern SWS 27.3% Sehgal Family Started Motherson Group in 1975 Technical Agreement with Tokai Electric Industries, Japan in 1983 for Manufacturing of wiring Harnesses Established Motherson Sumi Systems Ltd. (MSSL ) in JV with SWS in Sojitz 9.6% Share holding held in MSSL in individual names and through Motherson Consultancy Pvt. Ltd. (reverse merged into Samvardhana Motherson Finance Ltd.) Sehgal Family 34.2% As on date Group Turnover USD 625 Million ( ) Sumitomo Wiring Systems Ltd. (SWS): Subsidiary of Sumitomo Electric Industries, Japan 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 Turnover of JP billions ( ) Sojitz Corporation One of the leading trading & investment houses of the world Diversified portfolio having 188 Domestic and 409 Overseas affiliates

3 Presence in India KANDLA Rubber Inj ection Molding NASHIK Design Engineering PUNE Wiring Harness Automotiv e Manufacturing Engineering Sunroofs NOIDA & NCR REGION Wiring Harness Wires Fuses & Fuse Holders Tubes Plastic Molding Rubber Injection Molding IP, Door Trim & Bumpers Automotive Rearview Mirrors Design Engineering Injection Molding Tools IT Solutions Press Die Design Cutting Tools Machining Solutions Air Compressors Paint Coating Equipment Auxiliary Equipment for Injection Molding Machines Automotive Manufacturing Engineering Sunroofs Bus Air Conditioners Industrial Robots Sales, Installation & Service BANGALORE Wiring Harness Wires Plastic Molding Metal Machining MSSL Group PONDICHERRY Plastic Molding Sales Manufacturing CHENNAI Wiring Harness Wires Plastic Molding IP, Door Trim & Bumpers Automotiv e Rearview Mirrors Injection Molding Tools Cabins for Off-Highw ay Vehicles

4 Global Presence IRELAND UK GERMANY CZECH REPUBLIC Design Wiring Plastic Molding Plastic Engineering Harness Metal Machining Molding Representative Office SHARJAH Wiring Harness Plastic Molding Injection Molding Tools Liquid Silicon Rubber Injection Molding INDIA USA Design Engineering Representative Office SINGAPORE Strategic Sourcing SRI LANKA Wires AUSTRIA Representative Office MAURITIUS Representative Office AUSTRALIA Rubber Extrusion Waste Recycling Systems Design Engineering MSSL Group

5 Business Area Wise Sales Composition Rubber & Metal 10% Wiring Harness 64% Polymer 26%

6 Wiring Harness Manufacturing Backward integration for critical inputs for wiring harnesses such as wires, connectors, terminals, fuses and fuse boxes Established customer specific collaborations for Hyundai and DaimlerChrysler Consistently having over 65% share of wiring harness market for passenger cars in India 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 20 Manufacturing Units Over 20 Million Wiring Harnesses Produced Annually Wiring Harness Design Process Engineering Applicators Jigs In-house Facilities Assembly Boards Circuit Boards Component Design Tool Manufacturing Component Manufacturing Wires Connectors Terminals Fuses & Fuse Boxes Clamps & Binders Grommets & Seals Caps & Sleeves Material Handling

7 Polymer Processing Czech Republic Germany India Noida / Manesar / Chennai / Pondicherry / Bangalore Sharjah World class Molding Facilities Injection, Thermoset, Gas, Compression and Blow Molding 14 Component Molding Facilities Injection Molding Machines from 20 Tons 3200 Tons Complete In-house Post Processing Facilities including Paint Shop Robotic Trimming Operations Over 14,000 Tons of Polymer Processed Annually Over 2100 Types of Components Produced Over 1160 Million Components Manufactured Annually

8 Rubber, Metal and Other Parts Rubber Parts Manufacturing Locations at Noida, Kandla (SEZ) & Sharjah in Joint Venture With Woco Industrietechnik GmbH (WOCO) Acquired the business of Empire Rubber in Australia, engaged in Rubber Mixing & manufacture of Extruded Rubber components Supplying Products for Automotive applications, Kitchen appliances, Measuring & Control Technology and Medical Equipment Applications. Buy back arrangement with WOCO Machined Metal Parts Manufacturing locations at Bangalore, Chennai & Germany Specialisation in high precision machined metal components and assemblies. Supplying cooling solutions to leading computer manufacturer & metal components to Tier-I manufactures in Europe Rear Vision Systems Manufacturing Locations at Noida & Chennai Specializes in black box designing of automotive rear vision systems leading supplier of rear vision systems to major automobile manufacturers in India.

9 Providing Full System Solutions 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 Examples MSSL manufactures most of the plastic parts for Ford Fiesta - bumper to bumper (including bumpers) its value contributions to the Fiesta is among the highest across the vendors for the car. MSSL has also been a partner for most of these modules right from the design stage undertaking designing & development of Components and assemblies

10 Moving Towards Modularisation Injection Molded Components & Assemblies Blow Molded Components Rubber & Liquid Silicon Parts Machined Metal Products Injection Molding Tools Aerobin Automotive Mirrors AC Housing TV & Monitor Cabinets Wiring Harnesses and Related Modules Cockpit - Mercedes IP - Fiesta IP - Civic Bumper - Fiesta Door Trim & Interior Trims - Fiesta

11 MSSL Subsidiaries & Joint Ventures India Sharjah Europe MSSL 49% SCHEFENACKER MOTHERSON LTD. MSSL MSSL 50% 56% 33.3% 33.3% KYUNGSHIN INDUSTRIAL MOTHERSON LTD. 50% KYUNGSHIN INDUSTRIAL CO. MOTHERSON PUDENZ WICKMANN LTD. 44% WILHELM PUDENZ GmbH. WICKMANN WERKE GmbH 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% 51% SCHEFENACKER INTERNATIONAL AG BALDA MOTHERSON SOULTION INDIA LTD. 60% BALDA AG CALSONIC KANSEI MOTHERSON AUTO PRODUCTS LTD. 51% CALSONIC KANSEI CORP. Sri Lanka MOTHERSON ELECTRICAL WIRES LANKA PVT.LTD. 100% 100% 33.3% 51% 50.01% MSSL MIDEAST (FZE) 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) 49.99% E-COMPOST PTY LTD. 100% 100% 100% 100% 100% MSSL 50.01% MSSL GB LTD. (U.K.) MSSL IRELAND PVT. LTD. (Ireland) MSSL POLYMERS GmbH (Germany) MSSL ADVANCED POLYMERS S.R.O. (Czech Republic) MOTHERSONSUMI REINER GmbH (Germany) Australia GLOBAL ENVIRONMENT MANAGEMENT AUSTRALIA PTY. LTD. 80% MOTHERSON ELASTOMERS PTY. LTD.

12 Growing Faster - Sales Units in '000 1,800 1,600 1,400 1,200 1, Cars & MUV 1545 CAGR 18, % ,000 CAGR 1,210 14, % ,000 10,156 10,000 7,812 8,000 5,899 6,000 4, Rupees in Million 4,000 2, MSSL , H1 28.4% HY Rupees in Million 12,000 10,000 8,000 6,000 4,000 2,000 MSSL - Domestic 6,000 CAGR % 5, % CAGR , % , , Rupees in Million 1,000 MSSL Outside India % HY H H h!

13 Sales Profile Customer Wise Others 44% MARUTI 18% HYUNDAI 9% TRW 2% SWS 3% NACCO 3% SEWS-H 3% M&M 3% TATA 3% FORD 7% HSCIL 5% India Vs Outside India Outside India 36% India 64%

14 Focus on Profitability Profit Before Tax Profit After Tax Rs. in Million CAGR 39.02% H1 51.9% H1 Rs. in Million CAGR 42.73% % H H1

15 Focus on ROCE RETURN ON CAPITAL EMPLOYED 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, , Net Worth Loans FCCB ROCE % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

16 Capital expenditure & FCCB Issue Rs. in M illion Capital Expenditure Premium on Redemption Issue Expenditure Interest Income Total Finance Cost Exchange Loss/(Gain) FCCB Issue in July 2005 Less : converted into shares FCCB Outstanding Conversion 150% ofshare price at the time of issue of FCCB Coupon Rate Redemption price, if not converted/redeemed earlier then, on 16th July 2010 Expenditure Charged to Profit & Loss Account ( July 05- March 06) (32.45) (Apr- Mar 07) (34.24) (Apr-Sep 07) (11.28) (32.26) Euro Million Euro 4.50 millions Euro Millions Rs Per Share Nil % of Issue price Rs. In Million Total (July 05- Sept 07) (77.97)

17 Dividend Payout Dividend Payout Ratio 40% Dividend (Rs. in Millions) % 42% % 27% % 37% % 29% % 32% 50% 45% 40% 35% 30% 25% 20% Dividend to PAT (%) Return to Shareholders Bonus Issues Dividend Amount Dividend to PAT(Standalone) Dividend to PAT(Consolidated) 15% 10% Bonus Issue in : One share against Two shares held Bonus Issue in : One share against Two shares held Bonus Issue in : One share against Two shares held Bonus Issue in : One share against Two shares held

18 Setting New Targets ( as set out in 2005) Targets set for year 2010 Make MSSL a Billion Dollar Company 60% of our consolidated turnover should cater to the requirements of our customers outside India Have a customer profile where contribution from any individual customer in our turnover shall not be more than 20% of the total turnover US$ in million Percentage 70% 60% 50% 40% 30% 20% 10% 29% 33% 36% 60% Percentage 30% 25% 20% 15% 10% 5% 27% 23% Already Achieved 18% 20% % %

19 Setting New Targets ( as set out in 2005) Targets set for year 2010 Strive to maintain business ROCE of 40% Shift our stated dividend policy of 40% payout of the company s profits to 40% payout of the consolidated Profits Percentage 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 39% 40% 32% 28% Percentage 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 32% 29% 32%

20 Road to the Targets Growth in Domestic Market Growth in Overseas Market New Technologies & JVs Growth in the domestic market MSSL rate of growth higher than the industry growth Strong relationship of SWS with OEs like Nissan and Volkswagen will help MSSL Extending the entire range to new upcoming models New Car companies setting facilities for exports in India New Acquisitions bring more opportunities Penetration into existing markets and opening of new segments Exporting back to the collaborators The company will continue introducing new components as per customer requirements New JVs such as Balda to add to the growth momentum More JVs to follow

21 Growth Drivers Increasing Content per Car with increasing complexity in vehicles Growth of customers resulting in increased volumes Developing new products and setting up new Joint Ventures Move to new markets and new segments More acquisitions giving access to a new customer base Starting supplies from all the group companies to newly acquired customers

22 Automotive Industry Trends & Projections All major OEs are planning capacity expansion and making base in India for global exports of small cars Global Sourcing of components from India Increased complexity of vehicles resulting in more value addition Increased focus on modularisation Estimated Market size : 2.5 million units

23 Car Market -Trends & Projections NORTH INDIA WEST INDIA EAST INDIA All major OEs are planning capacity expansion and making base in India for global exports of small cars Global Sourcing of components from India Increased complexity of vehicles resulting in more value addition Increased focus on modularisation SOUTH INDIA

24 Increasing Content per Car Sunroof B-pillar Roof Lamp A-pillar Door Trim Inside Handle Cockpit Fuse Box HTC Wiring Harness Grommets Connectors Air Cleaner Assy. Battery Tray Front Suspension Net Front Grill Boot CV Joint Bumper Grip Assist C-pillar Roof Rail Spoiler Parcel Shelf Steering Column Cover Fuel Filler Door Garnish Exhaust Suspension Wheel Hub Cap Outside Handle Exterior Mirror Scuff Plate Box Floor Console Accelerator Padel HV / AC Ducts

25 Joint Venture Specialist Specialise in being a manufacturing company 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 Germany Australia Korea Italy USA Total (Sumi Motherson Group) Growing with many successful alliances, oldest being over 20 years

26 Expanding through Acquisitions & Overseas Ventures MSSL Ireland Pvt. Ltd. and MSSL Mideast (FZE) Established MSSL Ireland Pvt. Ltd., 1 st Overseas wiring harness design centre and customer support centre through acquisition of Wexford Electronix which was in receivership. Relocated the manufacturing operations to MSSL Mideast Sharjah in a record time of 70 days. Mothersonsumi Reiner GmbH Acquired machining business of Reiner Prazision GmbH in Germany. gave the Group entry to Automotive Tier I suppliers. MSSL (GB) Ltd. This acquisition of business of ASL Systems was a step in consolidating position of wiring harness business in niche markets. Acquire the businesses and assets in distress with customer contracts mainly in the European market Improve and stabilize the business and the relationship with the customers with improved quality, delivery and engineering support Offer ease of doing business to the customers by dealing with the same face at the same time and at the same location Extend the relationship by introducing other products from our range to the same customers G&S Kunststofftechnik GmbH Acquisition of G&S business added capabilities in Plastic injection molding including 2K molding. Ga ve an entry into Tier-I manufacturers and enabled setting-up a window for customer support and logistics Motherson Elastomers Pty. Ltd. Acquired Empire Rubber, Australia which is engaged in rubber mixing and manufacture of rubber extruded components on going concern basis. FP Formagrau s.r.o. Acquisition of FP Formagrau s.r.o. provided a low cost manufacturing base in Europe and added capabilities in Injection molding of plastics.

27 Expanding through Acquisitions & Overseas Ventures Acquire the businesses and assets in distress with customer contracts mainly in the European market Improve and stabilize the business and the relationship with the customers with improved quality, delivery and engineering support Relocate the substantive manpower oriented manufacturing to Sharjah / India Offer ease of doing business to the customers by dealing with the same face at the same time and at the same location Extend the relationship by introducing other products from our range to the same customers

28 Customer Recognition DAIMLERCHRYSLER Performance Award VA-VE Performance Award Overall Commendation Performance Award Design Capability Quality Award 2001 & Global Supplier of The Year Award for Best Quality Supplier 2006 Award for Zero Defect Supplies 2006 Award for Best Logistics Supplier Award for outstanding performance in Delivery S Gold Award 2006

29 Customer Recognition Overall Best Performance Award 2005 Quality 5 Star Award 2006 Quality Excellence Award 2006 Award For Superior Quality & Delivery Award for Excellence in Cost Reduction QDC Award 2006 Best Supplier Performance Award 2005 Outstanding Efforts On Quality Improvement 2007 Outstanding Supplier Performance Award 2005

30 Customer Recognition Quality Award 2005 Award for Outstanding Quality & Delivery 2004 Award for Best Supplier 2006 Overall Best Supplier Award Best Supplier for Strategic support

31 Customer & Collaborator Recognition Quality Improvement Award 2004 Best Supplier Award Delivery 2005 Global Quality Award 2005 Global Quality Award 2006

32 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.

33 Thank You A Relationship Built on Trust