Slide 1: Q1 FY2016 Earnings Presentation
DYNAMATIC TECHNOLOGIES LIMITED Q1 FY2016 EARNINGS PRESENTATION ° E) ox aN ” y ‘ ~* ¢ >.
Slide 2: Important Notice
IMPORTANT NOTICE This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies’ (“Dynamatic” or “Company”) future business
Slide 3: Performance Highlights: Consolidated Financial Highlights
PERFORMANCE HIGHLIGHTS Consolidated Financial Highlights Q1 FY2016 Highlights Revenue Breakup Q1 FY2016 • Net Revenues of `3,728 million • EBITDA of `245 million at 6.6% margin Q1 FY2015 16% • Interest expense declined by 9.5% y-o-y to `193 million 14% • Net Debt of ` 5,071 million (vs. ` 5,550 mill
Slide 4: Performance Highlights: Management Commentary
PERFORMANCE HIGHLIGHTS Management Commentary Commenting on the results, Mr. Udayant Malhoutra, CEO and Managing Director said: “Overall, recovery in the global auto industry remains slow and performance volatile. This industry scenario coupled with significant depreciation in the Euro has impacted o
Slide 5: Performance Highlights: Foreign Exchange Fluctuation
PERFORMANCE HIGHLIGHTS Foreign Exchange Fluctuation Exchange Rate Q1 FY2016 Q1 FY2015 Impact Impact % EURO vs. INR 70.31 81.94 (11.63) (14.2)% GBP vs. INR 97.52 100.65 (3.13) (3.1)% USD vs. INR 63.50 59.77 3.74 6.3% Impact due to change in average exchange rates (Y-o-Y) Particulars Erla DL UK JFTL T
Slide 6: Financial Performance Summary
FINANCIAL PERFORMANCE SUMMARY Consolidated Performance Highlights Q1 y-o-y Q4 q-o-q Full Year y-o-y Rs. million Growth Growth Growth FY16 FY15 (%) FY15 (%) FY15 FY14 (%) Revenue 3,728 4,250 (12.3)% 3,885 (4.0)% 16,288 15,875 2.6% EBITDA 245 463 (47.1)% 331 (26.0)% 1,511 1,629 (7.3)% Margin (%) 6.6%
Slide 7: Aerospace and Defence Segment
AEROSPACE AND DEFENCE SEGMENT Q1 FY16 Revenue Financial Overview Breakup Q1 y-o-y Q4 q-o-q Full Year y-o-y Rs. Growth Growth Growth million FY16 FY15 FY15 FY15 FY14 (%) (%) (%) UK India Revenue 598 593 0.9% 645 (7.3)% 2,617 2,233 17.2% 55% 45% India 266 238 11.7% 300 (11.3)% 1,173 919 27.6% UK 332 3
Slide 8: Hydraulics Segment
HYDRAULICS SEGMENT Q1 FY16 Revenue Financial Overview Breakup Q1 y-o-y Q4 q-o-q Full Year y-o-y Rs. Growth Growth Growth million FY16 FY15 FY15 FY15 FY14 (%) (%) (%) UK India Revenue 616 782 (21.2)% 663 (7.1)% 2,922 3,098 (5.7)% 37% 63% India 391 457 (14.5)% 395 (1.0)% 1,785 1,684 6.0% UK 225 325 (3
Slide 9: Automotive Segment
AUTOMOTIVE SEGMENT Q1 FY16 Revenue Financial Overview Breakup Q1 y-o-y Q4 q-o-q Full Year y-o-y Rs. Growth Growth Growth million FY16 FY15 FY15 FY15 FY14 India (%) (%) (%) Germany 14% Revenue 2,510 2,878 (12.8)% 2,578 (2.6)% 10,756 10,585 1.6% 86% India 359 433 (17.2)% 403 (10.9)% 1,587 1,762 (9.9)%
Slide 10: Quarterly Financial Trends: Financial Performance
QUARTERLY FINANCIAL TRENDS Financial Performance Revenue (` mn) and Growth (Q-o-Q) Segment Wise Revenue Contribution 4,250 4,319 14% 16% 18% 17% 16% 3,835 3,885 18% 19% 17% 17% 17% 3,728 1.6% 1.3% (1.3)% (4.0)% 68% 65% 65% 66% 67% (11.2)% Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q1 FY15 Q2 FY15 Q3 FY
Slide 11: Quarterly Financial Trends: Focus on Deleveraging the Balance Sheet
QUARTERLY FINANCIAL TRENDS Focus on Deleveraging the Balance Sheet Capital Structure Debt and Net Debt (` mn) (`million) Jun 30, 2016 Jun 30, 2015 6,140 5,550 5,660 5,071 Long Term 4,440 4,645 Borrowings Short Term 1,220 1,495 Borrowings Total Debt 5,660 6,140 Less: Cash & Cash 589 591 Equivalents Q
Slide 12: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products business for the automotive, hydraulic, aerospace and defence industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 13: Dynamatic Overview
DYNAMATIC OVERVIEW Vertically • Advanced iron foundry in India and Germany. Also has aluminium foundry in India for Integrated captive use Facilities • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of manufacturing highly intricate castings • In-house division for desig
Slide 14: Combination of Stable and High Growth Businesses
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components • Audi • Hyundai including engine, transmission, turbocharg • BMW • Nissan 67% of Q1 er and chassis parts • Daimler • Tata Motors FY16 • Metallurgical ferrous and • Ford • V
Slide 15: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors • Goldman Sachs India Equity • DSP Blackrock Opportunities Others Promoters Fund Fund 27% 51% • HDFC Trustee Company • Principal Mutual Fund Limited (HDFC Infrastructure • Param Capital Research Pvt Ltd Fund) DIIs • Citigroup
Slide 16: Financial Statements: Income Statement (Quarterly Trend)
FINANCIAL STATEMENTS Income Statement (Quarterly Trend) Profit & Loss Statement (` million) Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Revenues Net Sales / Income from Operations (Net of Excise Duty) 4,217 4,270 3,790 3,838 3,691 Other Operating Income 33 49 45 47 37 Total Revenues 4,250 4,319 3,835 3,
Slide 17: Financial Statements: Income Statement (Annual Trend)
FINANCIAL STATEMENTS Income Statement (Annual Trend) Profit & Loss Statement (` million) FY14 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 15,719 16,115 Other Operating Income 156 174 Total Revenues 15,875 16,288 Expenses Cost of Raw Materials Consumed 8,982 9,458 Changes in
Slide 18: Financial Statements: Balance Sheet – Assets
FINANCIAL STATEMENTS Balance Sheet – Assets Balance Sheet (` million) Sep-13 Mar-14 Sep-14 Mar-15 ASSETS Non-Current Assets Goodwill 679 679 679 879 Fixed Assets i) Tangible Fixed Assets 5,685 5,967 5,558 5,355 ii) Intangible Fixed Assets 272 224 193 202 iii) Capital work in progress 769 28 71 44 No
Slide 19: Financial Statements: Balance Sheet – Liabilities
FINANCIAL STATEMENTS Balance Sheet – Liabilities Balance Sheet (` million) Sep-13 Mar-14 Sep-14 Mar-15 EQUITY and LIABILITIES Shareholders Fund Share capital 54 55 60 63 Reserves and surplus 859 1,376 2,134 2,453 Money Received against Share Warrants 125 100 0 0 Non-controlling interest (Preference
Slide 20: Contact Details
CONTACT DETAILS Mr. Hanuman Sharma Executive Director and Chief Financial Officer Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India T: +91 80 2839 4933 / 34 / 35 F: +91 80 2839 5823 E: hanuman.sharma@dynamatics.net Mr. Naveen Chandra Head – Legal, Complianc