Fiem Industries Limited · NSE:FIEMIND
Fiem Industries — Investor Presentation (March 2014)
39 slides from Fiem Industries's investor presentation, March 2014
Slide 1: Mar 2014
Mar- 2014
Slide 2: Summary
2 Summary Company Auto Components LED Financials
Slide 3: Overview
3 • Fiem Industries Ltd. (FIEM) was founded and incorporated in 1989 by Dr. J.K. Jain. • The Company was listed on BSE and NSE in 2006. • FIEM is one of the leading manufacturers of Automotive Lighting & Signalling Equipments and Rear Overview View Mirrors in India. FIEM is among first companies in
Slide 4: Company
4 Summary Company Auto Components LED Financials
Slide 5: Company background and FY13 revenue product mix
5 • The Company was originally incorporated in India as Rahul Auto Private FY13 Revenue Product Mix Limited on February 6, 1989 in New Delhi and was founded by Dr. J.K. Jain, a first generation entrepreneur. Sheet Metal LED Products part, 3% & Others, 3% • FIEM is one of the leading manufacturers of
Slide 6: Dr. J. K. Jain, Chairman & Managing Director
6 Dr. J. K. Jain, Chairman & Managing Director • He is the founder of the Company and is a first generation entrepreneur. He has rich experience over 40 years and is one of the pioneers in the Automotive Lighting Industry in India. He has commenced his business journey since 1970 as a small scale in
Slide 7: Whole-time and Executive Directors
7 Mr. J.S. S. Rao – Whole-time Director • He has an overall experience of over 30 years in automotive lighting and components industry involving manufacturing, operational & business strategic functions. He is on the board of the company and presently responsible for the overseas and South India ope
Slide 8: Chief Financial Officer and senior management
8 • He is having experience of over 26 • With 13 Years experience in • Has been working in the field of years in the fields of accounts, secretarial & legal field, he is marketing and sales in the Lighting finance and taxation. He is a responsible for secretarial, legal and Industry for last 18 year
Slide 9: Company milestones since 1989
9 2013 - 2014 • 2013 - Entered into 2008-2012 a 50:50 JV with • 2010 - Started a Horustech Lighting 2001-2007 manufacturing Unit of Italy for setting in Rai, Sonepat up a design centre • 2004 &2005- setup 1994-2000 (Unit 7) • 2013 - Vendor mfg facilities in • 2011 – Setup registration • 1994-A new s
Slide 10: Strategic client catering
STRATEGIC CLIENT CATERING wy GE N Light Up The World Unit 6 Nalagarh ' pecans «< gem 9. wim & S w WwW E i @ « S Unit 7 Rai, Sonepat — a - para eee eae 5 ea (Haryana) NORTH fs ® © & Se = Init 1 Kundli, @renex (Haryana) VECTRAg hak 4 want QR. nen % 6 go © 226 Ox... 2D Si an (Kamataka) Lim ee Beet BT w
Slide 11: Manufacturing units
11 Unit - 1 Kundli, Sonepat, Unit - 2 Hosur, Tamil Nadu Unit - 3 Hosur, Tamil Nadu Unit - 4 Mysore, Karnataka Haryana • Established in 2004 • Established in 2005 • Established in 2005 • Established in 1994 • Land 12,505 Sq. Mtrs. • Land 19,110 Sq. Mtrs. • Land 4,014 Sq. Mtrs. • Land 16,588 Sq. Mtrs.
Slide 12: In-house R&D capabilities
12 • FIEM’s state of the art R&D Unit offers its clients design and development capabilities in Automotive Lighting & Signalling Equipments and Rear View Mirrors which meet the specifications of the clients requirements. • Government of India, Ministry of Science and Technology, Department of Scienc
Slide 13: Strong client base and manufacturing edge
13 Strong Client Base • FIEM has a strong client base of more than 50 OEMs and is supplying to its prestigious customers since their inception. • Significant market share for supply of automotive lighting & signalling equipments and rear view mirrors to Two-wheeler and Four- wheeler OEM's • Exportin
Slide 14: More than 50 awards since 1991
14 MORE THAN 50+ AWARDS SINCE 1991 • Bronze Award for Excellence in Quality for 2013 from India Yamaha Motor Pvt. Ltd.-2014 • ESQR’S Quality Achievement Award 2013 in the GOLD CATEGORY for the Extra Ordinary achievement in quality management - 2013 • Manufacturing Today Award “Champion of Indian Man
Slide 15: Government approvals and certifications
15 Government Approved R&D Center Approval from Ministry of Railway MNRE Approved Solar Lantern Approval from PWD, Haryana for LED products
Slide 16: Media coverage
16 Auto Monitor – Fiem adds Honda Japan as client Economic Times (15/8/13)- Dr. JK Jain success story Economic Times (25/9/12)- ELCINA award
Slide 17: Auto Components
17 Summary Company Auto Components LED Financials
Slide 18: Automotive lighting
18 FIEM is one of the most renowned names in Automotive Lightings & Automotive Light Contribution Signalling Equipments with the history of around four decades. The company is associated with some of the most prestigious OEM customers INR Mn 5,000 4,707 in India. 4,177 • Automotive Lighting - In the
Slide 19: Automotive lights and rear view mirrors
AUTOMOTIVE LIGHTS & REAR VIEW MIRRORSY Gra HONDA Activa-Head Activa-Tail Eterno-Blinker Shine-Blinker Activa-Rear Lamp Lamp Light Light View Mirror TVS >=& = Apache-Head Scooty-Head Apache-Tail Star Sports Scooty Pep Lamp Lamp Lamp Blinker Light Rear View Mirror TATA Sumo-Tail Safari-Roof Sumo-Blink
Slide 20: Rear view mirrors
20 • Rear-View Mirror – FIEM has four state-of-the-art mirror manufacturing Rear View Mirror Contribution plants in its different units having all the processes in-house which includes: INR Mn Mirror Plate Making - Profile cutting, Washing, Grinding, Convexing, 1,000 900 866 Cleaning, Aluminium co
Slide 21: Plastic moulded parts
21 • Plastic Moulded Parts – Plastic moulding is integral part of automotive Plastic Molded Parts Contribution lamps as well as rear view mirrors, as these parts are required to make final assembly of all the products. INR Mn 700 663 • FIEM has installed world class more than 450 latest injection mo
Slide 22: Sheet metal parts
22 • Sheet Metal Parts – FIEM has full fledged sheet metal fabrication Sheet Metal Parts Contribution facilities as well as Mudguard rolling plants for manufacturing Front and Rear mudguard for Motorcycles & Mopeds. The fabrication facility have INR Mn 250 the following in-house processes: • Presses
Slide 23: Supplies to Honda Japan
23 • In 2012, FIEM commenced their supplies to Honda Japan for Honda Integra 4-670CC 670cc Integra-4 Motorcycle which includes all lamps such as Head lamps, RC Lamps, Blinker lights etc. and become global supplier to Honda. • FIEM also supplying through Honda Trading to Honda Vietnam and Honda Thail
Slide 24: FY13 top clientele contribution
24 Two wheeler segment (Domestic)- FY13 Top Clientele Contribution 1.50% 11.50% 4.00% 40.00% 12.00% Two wheeler segment (Global Customers) 31.00% Four wheeler segment (Domestic)- Honda Motor Cycle TVS Motor Replacement Market Suzuki Motorcycle India Mahindra Two wheeler Other Customers Four wheeler
Slide 25: LED
25 Summary Company Auto Components LED Financials
Slide 26: LED luminaires and passenger information systems
26 • After strengthening its position in the Automotive Industry, FIEM has already LED Luminairies diversified into two more additional segments: • LED luminaires for indoor and outdoor applications • Integrated Passenger Information Systems with LED Display for Railways and Buses • FIEM has in-hous
Slide 27: Indoor and outdoor LED lights
27 FIEM manufactures the following types of LED Luminaires: Indoor LED Lights • LED Bulbs • LED Tubes Ceiling Lights • LED Ceiling Lights • LED Down Lights • LED Solar Lanterns • LED Torches LED Tubes LED Bulbs LED Torches Down Lights • Applications - Commercial, Industrial, Residential and other bu
Slide 28: LED vs CFL vs incandescent bulbs
28 Fiem LED CFL Incandescent Bulbs Life Expectancy >35,000hrs 8,000hrs 1,200hrs Watt 7watts 13-15watts 60watt Kwh of electricity 350 700 3,000 used in 50,000hrs Hazardous None 5mg mercury/bulb None Material Color Rendition Wide range of color Restricted color Restricted color Dimmability Yes Restric
Slide 29: Integrated Passenger Information System with LED display
29 • Integrated Passenger Information System with LED Display (IPIS or PIDS) is an LED Integrated Passenger Information System electronic information system which provides real-time passenger Railway information. • Passenger information delivered in relevant locations along the bus route is an impor
Slide 30: LED industry glimpse
30 LED Industry Glimpse: • India is emerging as a very big market for LEDs. However, being a price sensitive market, it is expected to witness significant increase in penetration, as LED luminaires prices go down the price ladder. • LED switching offers the following benefits to our country : • INR
Slide 31: Expected lighting industry growth
31 LED lighting is transforming the entire landscape of the Lighting Industry and as per estimates LED will constitute around 75% of the lighting in 2020. Expected Industry Growth INR Crs 12,000 7% 10,460 10,000 2008 93% 8,000 7,560 6,000 5,500 4,662 4,000 4,110 25% 2,989 2,000 1,925 2020 1,250 - 75
Slide 32: Financials
32 Summary Company Auto Components LED Financials
Slide 33: Consolidated profit and loss
33 Particulars (INR Mn) FY11 FY12 FY13 Total Income* 4,279 5,354 6,068 Expenses 3,900 4,675 5,361 EBITDA 379 680 707 EBITDA Margin 8.85% 12.70% 11.65% Depreciation & Amortization 130 169 183 Finance Cost 95 208 130 PBT 154 303 394 Taxes 43 92 116 PAT 111 211 277 PAT Margin 2.59% 3.95% 4.57% EPS 9.25
Slide 34: Consolidated balance sheet
34 Particulars (INR Mn) FY12 FY13 Particulars (INR Mn) FY12 FY13 Shareholder Funds Non Current Asset Share Capital – Equity 120 120 Tangible Asset 2,806 2,916 Reserves & Surplus 1,318 1,561 Intangible Asset 10 11 Total - Shareholder Funds 1,438 1,681 Capital Work in Progress 14 15 Non Current Liabil
Slide 35: Standalone profit and loss
35 Particulars (INR Mn) FY11 FY12 FY13 9MFY14 Total Income* 4,213 5,338 6,026 5,200 Expenses 3,831 4,659 5,323 4,566 EBITDA 382 680 702 635 EBITDA Margin 9.1% 12.7% 11.7% 12.2% Depreciation & Amortization 130 169 183 160 Finance Cost 95 208 129 110 PBT 157 303 389 364 Taxes 43 92 116 110 PAT 114 211
Slide 36: Standalone balance sheet
36 Particulars (INR Mn) FY12 FY13 H1FY14 Particulars (INR Mn) FY12 FY13 H1FY14 Shareholder Funds Non Current Asset Share Capital – Equity 120 120 120 Tangible Asset 2,805 2,916 3,114* Reserves & Surplus 1,324 1,562 1,713 Intangible Asset 10 11 Total - Shareholder Funds 1,443 1,682 1,833 Capital Work
Slide 37: Revenue, EBITDA, net profit and efficiency ratios
37 Total Revenue & EBIDTAM% Net Profit INR Mn INR Mn 7,000 12.73% 14.00% 6,026 300 273 6,000 5,338 12.00% 11.65% 250 5,000 4,213 10.00% 211 9.56% 9.07% 200 4,000 8.00% 2,950 150 3,000 6.00% 108 114 2,000 4.00% 100 1,000 2.00% 50 - 0.00% - FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 EBITDA Efficiency Rat
Slide 38: Debt/equity, book value, dividend and working capital
38 Gross Debt/Equity Book Value Per Share 1.4 1.2x INR 1.2x 140 129 1.2 120 109 1.0 0.9x 94 100 0.8 80 80 0.6x 0.6 60 0.4 40 0.2 20 0.0 - FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 Dividend Per Share Working Capital Days INR 35 33 4.40 4.0 29 30 26 3.90 3.40 3.0 25 2.90 2.5 2.5 20 2.40 14 1.90 15 1.40
Slide 39: For further information please contact
39 Fiem Industries Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not cur