Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Conference Presentation (February 2022)
30 slides from Samvardhana Motherson International's conference presentation, Feb 17, 2022
Slide 1: Investor conference cover letter to exchanges
Motherson Sumi Systems Limited Head Office: C-14 A & B, Sector 1, Noida – 201301 Distt. Gautam Budh Nagar, U.P. India Tel: +91-120-6752100, 6752278, Fax: +91-120-2521866, 2521966, Website: www.motherson.com February 17, 2022 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Fl
Slide 2: Scaling and adapting to change
Scaling and adapting to change. February 2022 Photo by Tim Hart
Slide 3: Motherson
Motherson. • Motherson started in 1975 in Delhi as a partnership between my mother, the Late Shrimati Swaran Lata Sehgal, and me. • Our name signi ies a relationship of trust with all stakeholders. 2 Photo by Rohit Rath f
Slide 4: Diversified group portfolio
Diversi ied group portfolio. Transformation from an Indian wiring harness manufacturer to a global diversi ied group. 01. 02. 03. 04. Wiring harness Vision Systems Modules & Polymer Others Precision Metals & Technology & Lighting & Aerospace Logistics Health & Services Modules Industrial Solutions E
Slide 5: Global presence
Global presence. A multinational with Indian roots, with a global network of manufacturing facilities, engineering and design centres, marketing of ices, logistic centres and sourcing hubs across the world to serve our customers globally in geographies of their presence. Located in 270 facilities ac
Slide 6: Our ethos drives value creation and performance
APPROACH TO RAPID, SUSTAINABLE GROWTH Our ethos Ethos drives value creation and Philosophy performance. Outcome Performance Value Principles 5
Slide 7: Let's start with the outcomes
APPROACH TO RAPID, SUSTAINABLE GROWTH Let’s start Ethos with the outcomes. Philosophy Outcome Performance Value Principles 6
Slide 8: Vision
5 Vision No. 4 Up to 40% of consolidated 2 pro it as dividend 20 No. 1 USD 36 billion revenues in 2024 25 with 40% ROCE (consolidated) No. 2 3CX10 No country, customer or component should contribute more than 10% to our revenues No. 3 75% of revenues from automotive industry, 25% from new divisions
Slide 9: Starting a new chapter
Starting a new SAMIL 33.4% MSWIL chapter. The restructuring will align the interests of all our stakeholders and create growth opportunities for everyone. Revenue growth Return to 1993 - 2021 shareholders** CAGR of 33% MSSL since MSSL IPO CAGR of 34% * Post re-organisation the name of Motherson Sumi
Slide 10: Creating value for shareholders
Creating value for shareholders. 01 02 Simpli ication Alignment of of the Group the interests of structure. all stakeholders. + Samvardhana Motherson Sumi Motherson 33.4% Wiring India Ltd. International Ltd. (MSWIL) (SAMIL) (Listed company) 03 (Listed company) Creation of strong platforms for growth
Slide 11: Creation of two high-growth companies
Creation of two high-growth companies. Samvardhana Motherson Motherson Both companies are International Sumi Wiring well capitalised to India Ltd. Ltd. (SAMIL). pursue their growth Erstwhile Motherson Sumi (MSWIL) Systems (MSSL*) opportunities. • Well diversi ied company • Focus on India wiring acro
Slide 12: Consistent value creation principles have driven our growth
APPROACH TO RAPID, SUSTAINABLE GROWTH Consistent Ethos value creation principles Philosophy have driven our growth. Outcome Performance Value Principles 11
Slide 13: The strategy and principles that have guided us
CONSISTENT EXECUTION FOR LONG-TERM VALUE CREATION The strategy At the behest of customers: and principles • Set-up new plants • Innovate and develop that have new products 03 04 • Form new joint ventures Trust Asked to • Acquire new companies guided us. do more • Enter new industries 02 Return Focus
Slide 14: Proud to be part of the world's most admired brands
01 PROUD TO BE PART OF THE SUCCESS OF OUR CUSTOMERS Suzuki Land Rover …the Proud to world’s be part Audi Tata most of… Volvo BMW admired brands. John Deere Trucks Honda MAN Volkswagen Scania JCB Hyundai PSA Mercedes Porsche Group Benz Renault Paccar Daimler Ford trucks* 13 Photo by Denys Nevozhai
Slide 15: Focus on QCDDMSES
02 FOCUS ON CONSISTENT OUTSTANDING PERFORMANCE AND VALUE Focus on QCDDMSES. 2. Cost Work at optimising 1. Quality cost levels. 3. Design Driven by ‘QCCDDMSES’, Seamlessly its Provide design that guide us in different global quality support for current standards of the products and new aspects of ope
Slide 16: Sustainability at Motherson
02 FOCUS ON CONSISTENT OUTSTANDING PERFORMANCE AND VALUE Sustainability at Motherson. Environment For Motherson, sustainability is about building a Part of durable company QCDDMSES that is a good Governance Social global citizen in a world we all want to inhabit. Proud to be part of planet earth. 15
Slide 17: Chip shortage and rising commodity prices
02 FOCUS ON CONSISTENT OUTSTANDING PERFORMANCE AND VALUE Chip shortage and rising commodity prices. Despite the current market situation, we are working hard on 14% in Revenue and preserving cash reserves so we EBITDA QoQ* can overcome these challenges and continue on our growth path. 16 *As on 31st
Slide 18: Successful joint ventures
04 ASKED TO DO MORE Successful joint ventures. 26 02 39 existing JV partners 09 highest number of JVs with 29 age of our oldest partnership one partner countries total of origin of number of JV partners JV companies working with 17
Slide 19: Acquisitions at the behest of customers
04 ASKED TO DO MORE 24 Acquisitions at the Plast Met Turkey Motherson Group has integrated 27 (Tooling, injection moulding, assembly, lighting and acquisitions since 2002 bringing a wide metalised parts) behest of customers. range of solutions to customers. 25 Bombardier (EWIS) Mexico (Wiring harnes
Slide 20: Diversifying into new business divisions
04 ASKED TO DO MORE Diversifying into new business divisions. Technology & Logistics Aerospace Health & Medical Industrial Solutions • Growth in revenue at a • Consolidate fragmented • Global presence • Positively impacts lives CAGR of 22% from FY15 B2B ancillary market FY20 • Manufacturing DNA • Gr
Slide 21: 3CX10: no country, customer or component above 10%
04 ASKED TO DO MORE 3CX10. No country, customer or component should contribute more than 10% to our revenues. Component-wise Customer-wise Country-wise India share of Share of non- Revenues at 20% and automotive verticals Top 20 customers PAT >40%* at <1% which account for India is our primary repre
Slide 22: Continued focus on Electrification
05 INCREASE CONTENT, VALUE PER OEM Continued focus on Electri ication. Supplying to leading global and emerging OEMs in PV, CV & 2W segments for their EV programs. Share of SAMIL* revenues at 3.5% for 9M (vs. 3% in H1) as key programs have ramped up. EV order book represents only EV models and doesn
Slide 23: Our work principles stem from a clear purpose and mindset
APPROACH TO RAPID, SUSTAINABLE GROWTH Our work Ethos principles stem from a Philosophy clear purpose and mindset. Outcome Performance Value Principles 22
Slide 24: To be a globally preferred solutions provider
OUR VISION SINCE 1995 To be a Be part of the globally success of our customers. preferred solutions provider. 23 Photo by Ilse Orsel
Slide 25: Be humble
HUMAN PRINCIPLES ARE THE FOUNDATION OF EVERYTHING WE DO. Be humble. 24 Image source: obamawhitehouse.archives.gov
Slide 26: Relationships built on trust
People are the foundation, tied Relationships together with built on trust. mutual trust. 25
Slide 27: Working together as one team, as one family
OFFERING STABILITY AND GROWTH TO OVER 150,000 PEOPLE AND THEIR FAMILIES Working together as one team, as one family. 26 Image source: rawpixel.com
Slide 28: Ekla chalo
Ekla chalo. To go beyond unchartered territory, you have to walk alone. When a collective lot of people start dreaming together, that is Ekla Chalo. 27
Slide 29: The best is yet to come
The best is yet to come. 28 Photo by Matt Howard
Slide 30: Thank you
Thank you. © Motherson All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containi
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