Gabriel India Limited · NSE:GABRIEL
Gabriel India — Axis Capital 3rd Annual Auto Conference (March 2017)
45 slides from Gabriel India's conference presentation, March 2017
Slide 1: Intimation of Investor Meetings Cover Letter
Gabriel India Limited 2ath Milestone, Pune-Nashik Highway, Village Kuruli, Tal : Khed, Dist. Pune - 410 501 (India) Tel. :+ 91 - 2135 - 610700, 610757 Fax :+ 91 - 2135 - 610787, 610796 www.anandgroupindia.com March 15, 2017 BSE Limited National Stock Exchange of India Limited 25" Floor, P. J. Towers
Slide 2: Gabriel India Ltd. Investor Presentation – March 2017
Gabriel India Ltd. Investor Presentation – March 2017
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), has been prepared by Gabriel India Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form t
Slide 4: Index
Index Introduction 04 Business Overview 05 Strategy Going Ahead 20 Financial Highlights 23 Corporate Overview 32 3
Slide 5: Introduction
Introduction Incorporated The company, Gabriel India, in 1961 Experienced Pioneers Of Shock Absorber & Professional Management manufacturing in India Innovation Significant Presence in all Strong R&D with over channels of sales 21 patents filed in OE, Aftermarket and Exports Products & Processes Str
Slide 6: Business Overview
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Slide 7: Pioneer of Ride Control Products
Pioneer of Ride Control Products… 2/3 Wheeler Front Hydraulic Shock Gas Shock Forks Absorbers Absorbers Passenger Car Gas Shock McPherson Cartridges Absorbers Struts After Market across all segments CV & Railways Shock Cabin Seat Absorbers Dampers Dampers 6
Slide 8: …with Diversified Revenue-Mix
…with Diversified Revenue-Mix Revenue (Rs. Mn) Segment - Wise - 9M FY17 2/3 CAGR +13% Wheelers 14,441 14,382 57% 12,866 12,053 11,282 11,380 Passenger 9,700 Commercial cars Vehicles 32% 11% 7,055 Channel - Wise - 9M FY17 Aftermarket OE 13% 82% FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M FY17 Exports 5% 7
Slide 9: No OEM accounting for >20% of Sales
… & “No” OEM accounting for >20% of Sales 2/3 Wheeler Passenger Car CV & Railways 8
Slide 10: Strongly supported by Aftermarket Presence
… Strongly supported by Aftermarket Presence • Brand “Gabriel” synonymous with shock absorbers Brand “Gabriel” and struts • Market Share of ~45% • 19 CFA Locations & 375 Dealer Network Extensive Distribution Network • ~6000 Retail Outlets supported by highly trained Sales Force • More than 500 produ
Slide 11: Strengthening Retailer Connect
Strengthening Retailer Connect… First-of-its-Kind Program to build loyalty among Retailers & Mechanics Aiming to connect with Key initiative to retailer emotionally, and strengthen brand understand their “Gabriel” and connect specific needs ELITE RETAILER with Retailers PROGRAM In 1st phase, Honouri
Slide 12: Reinforcing Brand Gabriel
… Reinforcing Brand “Gabriel” Hoardings/ Umbrella Distribution/ Branding at Bus Shelters Campus Branding OEM Managed Sports events 11
Slide 13: Creating Global Presence through Exports
Creating Global Presence through Exports Leveraging relationship with Dedicated Marketing team Caters to demand Global OEMs in India to for exploring opportunities from OEM & penetrate their Global in Overseas Markets Aftermarket Operations Exports to developed markets Focusing to increase presence
Slide 14: Aftermarket & Exports – Improving Performance
Aftermarket & Exports – Improving Performance Aftermarket Sales (Rs Mn) Export Sales (Rs. Mn) CAGR +21% CAGR +29% 1,854 571 553 558 513 1,516 1,415 1,441 415 1,205 382 1,004 292 874 594 126 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M FY17 FY17 13
Slide 15: Strategic Manufacturing Footprint
Strategic Manufacturing Footprint Ashok Leyland SML Isuzu Tata Motors GIL Presence Honda Cars Honda Motorcycles TVS Motors GIL Plants ICML Yamaha India Maruti Suzuki Parwanoo GIL Satellite Locations Suzuki Motorcycles Khandsa AMW GM Sanand Dewas Tata Motors Hindustan Motors Honda Motorcycles Nashik
Slide 16: Manufacturing Facilities – 2/3 Wheelers
… Manufacturing Facilities 2/3 Wheelers Key Features Clientele • Commenced production in 1990 Nashik • Products: Shock Absorbers & Front Forks • TC with Yamaha Motors Hydraulic System • Commenced production in 1997 Hosur • Products: Shock Absorbers & Front Forks • TC with KYB Japan & Yamaha Motors H
Slide 17: Manufacturing Facilities – Passenger Cars
… Manufacturing Facilities Passenger Cars Key Features Clientele • Commenced production in 1997 Chakan • Segment Serviced : Passenger Cars, Utility Vehicles and Railway • Products: Shock Absorbers & Struts • Commenced production in 2007 Khandsa • Products: Shock Absorbers & Struts • TC with KYB Japa
Slide 18: Manufacturing Facilities – CV & Railways
… Manufacturing Facilities CV & Railways Key Features Clientele • Commenced production in 1992 Dewas • Segment Serviced : OE, Aftermarket and Exports • Products: Shox – Commercial Vehicles 17
Slide 19: Strong In-house R&D & Global Technology Partners
Strong In-house R&D & Global Technology Partners Key Principles of R&D • Developing light DSIR Approved R&D Centres weight products at competitive costs Well equipped state- Technical Collaborations with Global Partners • Developing of-the-art products that will • Chakan • KYB Japan – Focus on Short
Slide 20: Achieving Engineering Excellence
Achieving Engineering Excellence First to Develop Designed & Adjustable Electronic- First time in India - developed Remote Hydraulic Shock Shock Absorbers Canister Shock Absorber for a leading with Floating Piston Absorber SUV vehicle in Aftermarket First Indian Company to Proven Engineering First t
Slide 21: Strategy Going Ahead
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Slide 22: Strategic Business Unit Approach
Strategic Business Unit Approach… 2/3 Wheeler CV & Railways • Quality & Process • Product Technology Technology • New Product Devolvement • Capacity Enhancement Aftermarket Passenger Car • Product Development • Product Innovation • Expanding Reach • Improving Market Share To Derive benefits in Custo
Slide 23: …To Drive Growth
… To Drive Growth Sales Growth • Exports Focus • In Organic Growth • Global Manufacturing Footprint Efficiency Improvement • Customer Focus Technology & Innovation • Debt Reduction • Improvement in quality • Break Even Point (BEP) • R & D Focus Reduction • Sustainable • Simplification of Parts Manuf
Slide 24: Financial Highlights
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Slide 25: Profit & Loss Highlights
Profit & Loss Highlights % of % of % of % of Rs. Mn Q3 FY17 Q3 FY16 YoY% 9M FY 17 9M FY 16 YoY% revenue revenue revenue revenue Revenue 3,737 100.0% 3,549 100.0% 5.3% 11,380 100.0% 10,720 100.00% 6.2% Raw Material 2,633 70.5% 2,494 70.3% 8,084 71.0% 7,644 71.3% Employee Expenses 312 8.4% 321 9.0% 94
Slide 26: Quarterly Performance Trend
Quarterly Performance Trend Revenue EBITDA EBITDA Margin% (Rs.Mn) 3,938 376 9.9% 351 342 353 9.5% 9.5% 3,704 3,737 336 9.2% 9.2% 3,662 3,549 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY16 FY16 FY17 FY17 FY17 FY16** FY16 FY17 FY17 FY17 FY16** FY16 FY17 FY17 FY17 PBT Before Exceptional Item & Margi
Slide 27: Reduction in Borrowings
Reduction in Borrowings 1,276 17 Others 288 Finance Lease 920 Term Loan 7 Working Capital 83 Public Deposit 653 7 716 666 461 131 112 255 4 32 164 185 53 95 59 Mar’12 Mar’13 Mar’14 Mar’15 Mar’16 26
Slide 28: Annual Performance Trend
Annual Performance Trend Revenue EBITDA (Rs.Mn) CAGR +13% CAGR +14% 14,441 14,382 1,276 12,866 1,168 12,053 11,282 941 9,700 888 904 826 7,055 573 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA Margin% PAT CAGR +21% 9.2% 8.9% 752 8.2% 8.3% 8.1% 6.9% 7.0% 600 531 453 426
Slide 29: Annual Performance Trend
Annual Performance Trend Networth Debt:Equity (Rs.Mn) 3,799 1.00 3,254 0.80 2,852 2,569 2,312 1,865 0.53 1,493 0.32 0.23 0.04 0.03 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Funds Employed ROCE 4,016 25.7% 26.8% 3,561 3,697 3,492 3,617 3,499 23.8% 3,139 20.6% 18.8% 17.0% 1
Slide 30: Historical Profit & Loss Highlights
Historical Profit & Loss Highlights Rs.Mn FY16 FY15 FY14 FY13 Revenue 14,382 14,441 12,866 12,053 Raw Material 10,282 10,434 9,266 8,644 Employee Expenses 1,150 1,077 982 911 Other Expenses 1,674 1,762 1,714 1,672 EBITDA 1,276 1,168 904 826 Margin 9.0% 8.1% 7.0% 6.9% Other Income 42 43 56 40 Interes
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights Rs. Mn Mar-16 Mar-15 Rs. Mn Mar-16 Mar-15 Shareholder’s Fund 3,799 3,254 Non-current assets 2,997 2,958 Share capital 144 144 Fixed assets 2,746 2,708 Reserves & Surplus 3,656 3,111 Long-term loans and advances 236 226 Non-current liabilities 277 260 Other non-current assets
Slide 32: Improving Dividend Profile
Improving Dividend Profile Dividend Per Share (Rs.) 1.2 1.05 • Continuous Dividend since 0.85 1998 0.75 • Stable Payout Ratio 0.5 0.5 0.45 • Declared Interim Dividend of Rs. 0.45 per share, amounting to 45% of Face Value. FY11 FY12 FY13 FY14 FY15 FY16 Sep'16 15% 21% 32% 33% 31% 23% Pay out Ratio 31
Slide 33: Corporate Overview
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Slide 34: Evolution
Evolution 2001 - 2010 1991 - 2000 • Exports to Yamaha (Japan) Commenced 1961-1990 • Single Unit Manufacturing to • Sets up the Parwanoo facility, Multi Location segment wise manufactures shock absorbers • Incorporated Gabriel manufacturing : Passenger car for Commercial Vehicles and India in 1961 s
Slide 35: Evolution
Evolution 2015- 2016 2013 - 2014 • Received an approval to manufacture Linke- Hofmann- 2011-2012 • With key focus on R&D, Busch (LHB) Dampers from launches a full-fledged new 2- Indian Railways for high-speed • 2011 R&D Facility at Wheeler R&D centre in Hosur Trains Hosur & Nashik • Expanded presenc
Slide 36: Led by Experienced Professionals
Led by Experienced Professionals Mr. Deepak Chopra – Group CEO, Anand Group • Chartered Accountant & Company Secretary, with 37 years of experience across Industries • Associated with Anand Group since 1976 • Rich experience in Finance, Tax, Operations, Secretarial, and Project Management Mr. Manoj
Slide 37: Led by Experienced Professionals
Led by Experienced Professionals Mr. Rajendra Abhange, CTO Mr. Atul Jaggi , COO, TWBU Mr. Amitabh Srivastava, COO, AMBU Mr. Sarabjit Singh, COO, PCBU Mr. Umesh Shah , COO, CVRBU 36
Slide 38: Board of Directors
Board of Directors Mrs. Anjali Singh – Chairperson, Gabriel India • Joined Anand Group in 2005 • Studied Business Management at University of Westminster, UK, and Fine Arts at Central Martin’s School of Arts and Design, UK • Also serves as Chairperson, Supervisory Board, Anand Group since 2011 Mr. J
Slide 39: Board of Directors
Board of Directors Mr. Aditya Vij – Non Executive Independent Director • Over 3 decades of experience in the corporate world with a proven track record of developing and turning around businesses in various leadership positions. • Served as the Chief Executive Officer at Fortis Healthcare Limited fr
Slide 40: Achievement
Achievement TAA (Technology Assistance Agreement) signed off with TORRE (Gabriel South Africa) 39
Slide 41: Golden Peacock Award
Golden Peacock Award Gabriel Parwanoo awarded with prestigious Golden Peacock Award for HR Excellence 40
Slide 42: Industry Award
Industry Award Gabriel Dewas won Third price – FICCI Quality systems Excellence award in large scale category 41
Slide 43: Awarded with Great Place to Work
Awarded with “GREAT PLACE TO WORK” 2012 2015 2016 • Gabriel India Ranked #3 in • Gabriel India Ranked #2 in • Gabriel India Ranked #3 in Auto Component Industry Auto Component Industry Auto Component Industry • Recognized among the • Rank #43 among Top 50 • Rank #70 among Top 100 Best Companies in i
Slide 44: Industry Accolades
Industry Accolades • “Silver Quality Award” from Bajaj Auto • “Overall Cost Reduction” Award from Suzuki Motorcycles for 2015-16 • Felicitated for Long standing partnership with Royal Enfield Motorcycles • Gabriel Dewas won the First Prize in the “Safety Category” of the Manufacturing Today Excellen
Slide 45: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Gabriel India Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L34101PN1961PLC015735 CIN : U74140MH2010PTC204285 Mr. Rajendran Arunachalam Mr. Jigar Kavaiya/ Mr. Sameer Pardikar rajendran.arunachalam@gabriel.co.in Jigar.K
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