Cie Automotive India Ltd · NSE:CIEINDIA
Cie Automotive India — Mahindra CIE Automotive — Q4 CY2021 Earnings Presentation
52 slides from Cie Automotive India's earnings presentation, Feb 22, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation
in raC/E Mahindra CIE Automotive Limited Suite F9D, Grand Hyatt Plaza (Lobby Level), Off Western, Express Highway, Santacruz (E), Mumbai- 400 055, India Tel: +912262411031 Fax: +912262411030 \/IJ\NW. mahi nd racie. com mcie.investors@cie-india.com SEC/2022/19 February 22, 2022 BSE Limited National S
Slide 2: Q4 & Full Year CY2021 Results
Q4 & Full Year CY2021 Results 22 February 2022 I MUMBAI
Slide 3: Disclaimer
Mahindra CIE Disclaimer Mahindra CIE Automotive Limited, herein referred to as MCAL provides a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute a
Slide 4: Index
Index 1 OVERVIEW 2 Q4 CY2021 RESULTS 3 FULL YEAR CY2021 RESULTS 4 BALANCE SHEET & CASH FLOW 5 UPDATES 6 MARKET UPDATES 7 SEBI RESULTS 3
Slide 5: Overview
T OVERVIEW CIE Automotive
Slide 6: Legal Structure
OVERVIEW LEGAL STRUCTURE MVML (M&M Subsidiary) and CIE through it’s subsidiaries Promoter Group 11.44% 60.76% 100% 100% 100% 100% 100% BF Bill Forge Aurangabad Stokes CIE Galfor Precision de Mexico Electricals Group S.A. Private S de RL de Limited Limited* Limited CV 100% 100% 99.96% 100% Mahindra U
Slide 7: Q4 CY2021 Results
2 Q4 CY2021 RESULTS CIE Automotive
Slide 8: MCIE India Q4 CY2021 Results
MCIE INDIA Q4 CY2021 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ Mn) OCT-DEC 2021 CHANGE OCT-DEC 2020 JUL-SEP 2021 OCT-DEC 2021 OCT-DEC 2021 v/s v/s SALES 10,678 10% 9,702 10,682 OCT-DEC 2020 JUL-SEP 2021 <6T -11.1% 3.2% EBITDA* 1,286 -13% 1,483 1,615 MHCV 21.6% 26.7% EBITDA% 12.0% 15.3% 15.1% Tractor
Slide 9: MCIE Europe Q4 CY2021 Results
MCIE EUROPE Q4 CY2021 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ Mn) OCT-DEC 2021 CHANGE OCT-DEC 2020 JUL-SEP 2021 OCT-DEC 2021 OCT-DEC 2021 SALES 8,712 -3% 8,951 9,119 v/s v/s OCT-DEC 2020 JUL-SEP 2021 EBITDA* 794 -26% 1,066 1,143 <6T -25.3% 32.5% MHCV* -4.7% 33.6% EBITDA% 9.1% 11.9% 12.5% EBIT* 431
Slide 10: MCIE Consolidated Q4 CY2021 Results
MCIE CONSOLIDATED Q4 CY2021 RESULTS FINANCIAL UPDATE (₹ Mn) OCT-DEC 2021 CHANGE OCT-DEC 2020 JUL-SEP 2021 SALES 19,391 4% 18,653 19,801 EBITDA* 2,080 -18% 2,549 2,758 EBITDA% 10.7% 13.7% 13.9% EBIT* 1,253 -25% 1,668 1,923 EBIT% 6.5% 8.9% 9.7% EBT* 1,126 -30% 1,611 1,790 EBT% 5.8% 8.6% 9.0% (*) EBITD
Slide 11: Full Year CY2021 Results
3 FULL YEAR CY2021 RESULTS CIE Automotive
Slide 12: MCIE India CY2021 Results
MCIE INDIA CY2021 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ Mn) JAN-DEC 2021 CHANGE JAN-DEC 2020 JAN-DEC 2021 v/s SALES 40,582 46% 27,854 JAN-DEC2020 <6T 27.7% EBITDA* 5,735 77% 3,245 MHCV 89.5% EBITDA% 14.1% 11.7% Tractors 23.7% Two Wheelers 10.7% EBIT* 3,919 148% 1,577 Source: <6T and MHCV, is fro
Slide 13: MCIE Europe CY2021 Results
MCIE EUROPE CY2021 RESULTS FINANCIAL UPDATE MARKET UPDATE (₹ Mn) JAN-DEC 2021 CHANGE JAN-DEC 2020 JAN-DEC 2021 SALES 38,877 28% 30,327 v/s JAN-DEC 2020 EBITDA* 4,880 110% 2,319 <6T -4.4% MHCV 16.3% EBITDA% 12.6% 7.6% EBIT* 3,265 254% 923 Source: IHS Global EBIT% 8.4% 3.0% EBT* 2,966 390% 605 EBT% 7.
Slide 14: MCIE Consolidated CY2021 Results
MCIE CONSOLIDATED CY2021 RESULTS FINANCIAL UPDATE (₹ Mn) JAN-DEC 2021 CHANGE JAN-DEC 2020 SALES 79,459 37% 58,181 EBITDA* 10,615 91% 5,565 EBITDA% 13.4% 9.6% EBIT* 7,184 187% 2,500 EBIT% 9.0% 4.3% EBT* 6,650 241% 1,953 EBT% 8.4% 3.4% (*) EBITDA: Net Operating Income + Depreciation , EBIT: Net Operat
Slide 15: Balance Sheet & Cash Flow
4 BALANCE SHEET & CASH FLOW CIE Automotive
Slide 16: Consolidated Balance Sheet as on Dec 2021
MCIE CONSOLIDATED BALANCE SHEET AS ON 31 DEC 2021 (₹ Mn) 31 DEC 2021 31 DEC 2020 Fixed Assets 67,357 67,597 Net Working Capital -1,854 -349 Total Net Assets 65,502 67,248 Equity 51,966 49,207 Net Financial Debt (*) 7,813 12,755 Others (Net) (#) 5,724 5,286 Total Equity and Liabilities 65,502 67,248
Slide 17: Consolidated Cash Flow and NFD as on Dec 2021
MCIE CONSOLIDATED - CASH FLOW AND NFD AS ON 31 DEC 2021 (₹ Mn) EBITDA 10,615 Financial (533) Maintenance CAPEX (1,951) Tax Payment (1,053) OPERATING CASH FLOW 7,077 % EBITDA 67% Growing Capex (3,467) Working Capital Variation 1,505 Others (173) FINANCIAL CASH FLOW 4,942 BEGINNING NFD 12,755 ENDING N
Slide 18: Other Details
OTHER DETAILS OTHER OPERATING REVENUE, OTHER INCOME AND EXCHANGE RATES For Q4 CY2021 Full Year CY2021 (₹ Mn) INDIA EUROPE CONSOLIDATED INDIA EUROPE CONSOLIDATED Other Operating Revenue 716 535 1,251 2,695 1,713 4,408 Other Income 79 93 172 313 243 556 EXCHANGE RATES PERIOD ₹/ € Average for Q4 CY21 8
Slide 19: Updates
5 UPDATES CIE Automotive
Slide 20: Performance Evolution
PERFORMANCE EVOLUTION REVENUE AND EBITDA R E V E N U E ( ₹ Mn) EBITDA % 80000 76486 75660 79459 16 13.9 15.2 70000 14 13.7 14.2 13.8 14.1 13.3 13.2 13.4 61651 58181 11.5 12.6 60000 12 13.5 51214 11.1 11.7 50275 12.7 50000 10 9.8 45284 10.9 9.6 41861 40582 8.5 40000 35867 38877 8 34162 33429 33798 8
Slide 21: Key Highlights CY2021
KEY HIGHLIGHTS CY2021 • CIE increased stake in MCIE from 60.18% to 60.76% • New plants - SOP for both in 2022 • Bill Forge, Hosur • AEL, Aurangabad (new plant – existing compound). • New Capacity • Warm Forging at Chakan • Casting line upgradation completed, and Machining capacity expanded at Foundr
Slide 22: EV Update
EV UPDATE CY2021 • Europe • Aluminum Forgings trials on going EV Transmission Gear Set • New orders focused on non-engine parts • Orders received for EV parts with significant revenue • India • Significant part of new orders (>20%) in many divisions are 3W EV – Sample Composite Body for EV and Hybri
Slide 23: Strategy Update
STRATEGY UPDATE STRATEGY, TECHNOLOGY AND HUMAN RESOURCES STRATEGY IMPLEMENTED TECHNOLOGY & MANUFACTURING • Diversify customer base, plant locations & technologies EXCELLENCE • Make operations world class INDUSTRY 4.0: Moving from Static • Investment discipline to Dynamic manufacturing eco system • F
Slide 24: Revenue Split - CY2021
REVENUE SPLIT - CY2021 GEOGRAPHY AND TECHNOLOGY MAGNETICS 3% 3% COMPOSITES GEARS/ MACHINING MAGNETICS 2% 1% COMPOSITES 7% 33% FORGING 12% CASTINGS 6% CASTINGS GEARS/ MACHINING 10% 21% 22% STAMPINGS ALUMINUM STAMPINGS 11% 14% 86% GEARS/ MACHINING FORGING ALUMINUM 12% FORGING 59% 23
Slide 25: Segments and Customers (CY2021)
OVERVIEW SEGMENTS AND CUSTOMERS (CY2021) TECHNOLOGIES END USE SEGMENTS TOP CUSTOMERS • Forging 37% • Aluminium CARS + UTILITY Mahindra, Bajaj, • Stampings VEHICLES Maruti, Tata, Hero • Castings 31% 16% • Gears/ Machining TWO WHEELERS TRACTORS • Magnetic Products • Composites 2% 8% MHCV LIGHT COMMERC
Slide 26: Stock Evolution
STOCK EVOLUTION INDEXED FROM 1ST JAN 2015 MCIE Share Price (₹) Returns over the period PERIOD HIGH LOW MCIE NIFTY 50 INDEX NIFTY AUTO INDEX 6 Month (1st July – 31st Dec 2021) 298.45 219.1 -1.4% 10.4% 3.2% 12 Month (1st Jan – 31st Dec 2021) 298.45 151.5 34.4% 23.8% 17.9% 2 Years (1st Jan 2020 – 31st
Slide 27: Market Update
6 MARKET UPDATE CIE Automotive
Slide 28: India Market: Key Segments Update - Quarterly
INDIA MARKET: KEY SEGMENTS UPDATE - QUARTERLY MARKET PRODUCTION NUMBERS <6T Vehicles** MHCV Tractors Two Wheelers PERIOD Mio Units Δ% Units Δ% Units Δ% Units Δ% CY 2021 4.15 27.7 359,876 107.0 1,065,280 23.4 18,902,456 10.7 Q4 CY2021 1.05 -11.1 173,433 85.1 211,488 -27.4 4,549,031 -22.7 Q3 CY2021 1.
Slide 29: Market Outlook - India
MARKET OUTLOOK - INDIA • Passenger Vehicles ₋ Light Vehicles (less than 6 Tons – European Classification) Short Term: IHS forecasts production growth at a 7.2% between CY2021-CY 2022 Long term: IHS forecasts production growth at a CAGR of 5.2% over a period of 2021-2026 • MHCVs: Short Term: IHS fore
Slide 30: Europe Market: Key Segments Update - Quarterly
EUROPE MARKET: KEY SEGMENTS UPDATE - QUARTERLY MARKET PRODUCTION NUMBERS <6T Vehicles MHCV PERIOD Million Units Δ% Units Δ% CY 2021 15.50 -4.4 514,209 16.3 Q4 CY2021 3.86 -25.3 137,798 -4.7 Q3 CY2021 2.91 -31.7 103,178 -9.5 Q2 CY2021 4.06 86.6 135,467 87.0 Q1 CY2021 4.68 1.2 137,766 23.8 Source: IHS
Slide 31: Market Outlook - Europe
MARKET OUTLOOK - EUROPE • EU – Light Vehicles: ‒ IHS Global has forecasted that the Light Vehicle production will grow in CY22 by 18.4% as compared to CY21 ‒ and will grow at CAGR of 5.9% between CY21 to CY26. • EU – MHCV’s: ‒ IHS Global has forecasted that the Europe MHCV production will grow in CY
Slide 32: SEBI Results
7 SEBI RESULTS CIE Automotive
Slide 33: Standalone - Statement of Profit & Loss
MCIE STANDALAONE - STATEMENT OF PROFIT & LOSS Rs. in M illion Standalone Quarter Ended Year ended Particulars 31 December, 2021 30 September, 2021 31 December, 2020 31 December, 2021 31 December, 2020 (Refer Note 6) Un Audited (Refer Note 6) Audited Audited I Revenue from operations 8,407.63 8,789.4
Slide 34: Standalone - Statement of Profit & Loss (Cont'd)
MCIE STANDALAONE - STATEMENT OF PROFIT & LOSS (CONT’D) Standalone Quarter Ended Year ended Particulars 31 December, 2021 30 September, 2021 31 December, 2020 31 December, 2021 31 December, 2020 (Refer Note 6) Un Audited (Refer Note 6) Audited Audited VII Profit before tax (V-VI) 582.25 931.01 797.57
Slide 35: Standalone - Balance Sheet
MCIE STANDALAONE – BALANCE SHEET Rs. in M illion Standalone Particulars 31 December, 2021 31 December, 2020 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 11,889.56 11,021.12 (b) Capital Work in progress 587.16 688.32 (c) Goodwill 10,167.05 10,167.05 (d) Other Intang
Slide 36: Standalone - Balance Sheet Cont'd
MCIE STANDALAONE – BALANCE SHEET CONT’D Rs. in M illion Standalone Particulars 31 December, 2021 31 December, 2020 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,790.76 3,790.11 (b) Other Equity 36,712.44 35,660.00 40,503.20 39,450.11 LIABILITIES 2 NON-CURRENT LIABILIT
Slide 37: Standalone - Cash Flow
MCIE STANDALAONE – CASH FLOW Rs. in M illion 31 December, 2021 31 December, 2020 Particulars Audited Audited I Cash flows from operating activities Profit before tax 3,018.40 1,015.10 Adjustments for: Finance costs recognised in profit or loss 122.16 118.90 Interest income recognised in profit or lo
Slide 38: Standalone - Cash Flow Cont'd
MCIE STANDALAONE – CASH FLOW CONT’D Rs. in M illion 31 December, 2021 31 December, 2020 Particulars Audited Audited Net cash inflow from operating activities 2,751.63 3,084.27 II Cash flows from investing activities Purchase of Property, Plant and Equipment (2,097.44) (1,217.00) (Purchase)/Sale of c
Slide 39: Consolidated Statement of Profit & Loss
MCIE CONSOLIDATED STATEMENT OF PROFIT & LOSS Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 30 September, 2021 31 December, 31 December, 31 December, 2021 2020 2021 2020 [Refer Note 6] Un Audited [Refer Note 6] Audited Audited I Revenue from operations 20,641.48 20,90
Slide 40: Consolidated Statement of Profit & Loss - Cont'd
MCIE CONSOLIDATED STATEMENT OF PROFIT & LOSS - CONT’D … Rs. in Million Consolidated Quarter Ended Year ended Particulars 31 December, 30 September, 2021 31 December, 31 December, 31 December, 2021 2020 2021 2020 [Refer Note 6] Un Audited [Refer Note 6] Audited Audited VIII Profit before tax (V+VI+VI
Slide 41: Consolidated Statement of Profit & Loss - Cont'd
MCIE CONSOLIDATED STATEMENT OF PROFIT & LOSS - CONT’D … Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 30 September, 2021 31 December, 31 December, 31 December, 2021 2020 2021 2020 [Refer Note 6] Un Audited [Refer Note 6] Audited Audited XIII Other Comprehensive incom
Slide 42: Consolidated - Balance Sheet
MCIE CONSOLIDATED – BALANCE SHEET Rs. in M illion Consolidated Particulars 31 Dec ember, 2021 31 Dec ember, 2020 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 30,586.33 29,709.49 (b) Goodwill 36,264.59 37,553.94 (c ) Other Intangible Assets 263.43 272.87 (d) Financ
Slide 43: Consolidated - Balance Sheet Cont'd
MCIE CONSOLIDATED – BALANCE SHEET CONT’D Rs. in M illion Consolidated Particulars 31 Dec ember, 2021 31 Dec ember, 2020 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,790.75 3,790.11 (b) O ther Equity (i) Share premium 15,300.83 15,284.90 (ii) O ther reserves 32,874.29
Slide 44: Consolidated - Cash Flow
MCIE CONSOLIDATED – CASH FLOW Rs. in M illion 31 December, 2021 31 December, 2020 Particulars Audited Audited I Cash flows from operating activities Profit before tax 6,649.83 1,952.75 Adjustments for: Finance costs recognised in profit and loss 532.53 548.46 Allowance of trade receivables 23.00 (14
Slide 45: Consolidated - Cash Flow Cont'd
MCIE CONSOLIDATED – CASH FLOW CONT’D Rs. in M illion 31 December, 2021 31 December, 2020 Particulars Audited Audited Net c ash inflow from operating ac tivities 10,511.37 5,394.40 II Cash flows from investing activities (Purc hase)/Sale of c urrent investments (1,879.53) (1,375.88) Net gain on sale
Slide 46: Consolidated - Segment Result
MCIE CONSOLIDATED – SEGMENT RESULT Rs. in M illion Consolidated Quarter Ended Year ended 31 December, 30 September, 31 December, 31 December, 31 December, Particulars 2021 2021 2020 2021 2020 [Refer Note 6] Un Audited [Refer Note 6] Audited Audited 1 Segment Revenue a) India 11,559.06 11,573.63 10,3
Slide 47: Consolidated - Segment Assets and Liabilities
MCIE CONSOLIDATED – SEGMENT ASSETS AND LIABIILITIES Rs. in M illion Consolidated Quarter Ended Year ended 31 December, 30 September, 31 December, 31 December, 31 December, Particulars 2021 2021 2020 2021 2020 [Refer Note 6] Un Audited [Refer Note 6] Audited Audited 3 Segment Assets a) India 54,785.8
Slide 48: Notes
STATEMENT OF STANDALONE AND CONSOLIDATED RESULTS FOR THE QUARTER AND AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2021 NOTES Notes: 1 The statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies A
Slide 49: Notes Cont'd
NOTES CONT’D … 5 The Company has considered the possible effects that may result from the COVID-19 pandemic and has also taken into account external and internal information for assessing the possible impact of COVID-19 in the preparation of the financial information including the recoverability of
Slide 50: Annexure A - Subsidiaries and Associate Companies
NOTES CONT’D … Annexure A - Subsidiaries forming part of the M ahindra CIE Automotive Limited (M CIE) Group and its Associate Companies S. No. Name of the entity Relationship % of Holding Country of Incorporation 31 December, 2021 1 Stokes Group Limited (SGL) Subsidiary of M CIE 100% UK 2 Stokes For
Slide 51: Ratios
RATIOS Standalone Consolidation Ratio CY-21 CY-20 CY-21 CY-20 (i) Debtors Turnover (Days) 52 52 31 34 (ii) Inventory Turnover (Days) 56 59 64 63 (iii) Interest Coverage Ratio (times) 26 10 14 5 (iv) Current Ratio (times) 1.5 1.4 0.9 0.9 (v) Debt Equity Ratio (times) 0.05 0.02 0.25 0.33 (vi) Operatin
Slide 52: Thank You
Mahindra CIlE Thank You mahindracie.com
Mahindra CIE Automotive — Q4 CY2021 Earnings Presentation on 6ix