Fiem Industries Limited · NSE:FIEMIND
Fiem Industries — Investor Presentation (June 2014)
38 slides from Fiem Industries's investor presentation, June 2014
Slide 1: June 2014
June-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 FY14 revenue mix
5 • The Company was originally incorporated in India as Rahul Auto Private FY14 Revenue Product Mix Limited on February 6, 1989 in New Delhi and was founded by Dr. J.K. Jain, a first generation entrepreneur. LED & Others, • FIEM is one of the leading manufacturers of automotive lighting & 7.66% Rear
Slide 6: Dr. J. K. Jain, Chairman & Managing Director and directors
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 secretarial & •With an overall experience of 29 years, he spent years in the fields of accounts, finance legal field, he is responsible for secretarial, 19 years in Lighting Industry in the field of sales & and taxation. He is a memb
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: manufacturing units map
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: Research and development
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 • The Grand Award for QCDDM 2013-14 from Honda Motorcycle and Scooter India Ltd.-2014 • Achievement Award for Vendor Performance in the field of 'Development' in the year 2013-14 from Suzuki Motor Cycle India Private Limited-2014 • Bellwether Award 2012-13 in Auto
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: Auto Components
16 Summary Company Auto Components LED Financials
Slide 17: Automotive lighting
17 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 in India. 6,000 5,249 • Automotive Lighting - In the autom
Slide 18: Automotive lights & 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 19: Rear view mirrors
19 • 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, 1,200 Cleaning, Aluminium coating/Ch
Slide 20: Plastic moulded parts
20 • 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 1,200 • FIEM has installed world class more than 450 latest injection moul
Slide 21: Others: sheet metal parts
21 Others Include items contributing less than 10% of Total Sale, mainly Others Contribution includes Fabrication items, LED products, etc. INR Mn • Sheet Metal Parts (fabrication Item) – FIEM has full fledged sheet metal 700 fabrication facilities as well as Mudguard rolling plants for 610 manufact
Slide 22: Supplies to Honda Japan
22 • 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 23: Top clientele contribution
23 Two wheeler segment (Domestic)- FY14 Top Clientele Contribution 2.42% 9.25% 3.72% 3.78% 44.50% 11.15% Two wheeler segment (Global Customers) 25.18% Four wheeler segment (Domestic)- HONDA MOTORCYCLE TVS MOTOR COMPANY REPLACEMENT MARKET SUZUKI Motorcycle MAHINDRA Two Wheeler Eicher Royal Enfield Ot
Slide 24: LED
24 Summary Company Auto Components LED Financials
Slide 25: LED luminaires and passenger information systems
25 • 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 26: LED luminaire types
26 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 27: LED vs CFL vs incandescent bulbs
27 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 28: Integrated Passenger Information System with LED display
28 • 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 29: LED industry glimpse
29 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 30: Expected LED industry growth
30 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 31: Financials
31 Summary Company Auto Components LED Financials
Slide 32: Consolidated profit and loss
32 Particulars (INR Mn) FY11 FY12 FY13 FY14 Total Income* 4,279 5,354 6,068 7,211 Expenses 3,900 4,675 5,361 6,321 EBITDA 379 680 707 891 EBITDA Margin 8.85% 12.70% 11.65% 12.35% Depreciation & Amortization 130 169 183 218 Finance Cost 95 208 130 145 PBT 154 303 394 528 Taxes 43 92 116 155 PAT 111 2
Slide 33: Consolidated balance sheet
33 Particulars (INR Mn) FY13 FY14 Particulars (INR Mn) FY13 FY14 Share holders Fund Non Current Assets Share Capital 120 120 2,941 3,131 Fixed Assets Reserve and Surplus 1,561 1,849 0 0 Total Shareholders Fund 1,681 1,969 Non Current Investment 79 55 Non Current Liability Long term Loan and Advances
Slide 34: Standalone profit and loss
34 Particulars (INR Mn) FY11 FY12 FY13 FY14 Total Income* 4,213 5,338 6,026 7,191 Expenses 3,831 4,659 5,323 6,299 EBITDA 382 680 702 891 EBITDA Margin 9.1% 12.7% 11.7% 12.4% Depreciation & Amortization 130 169 183 218 Finance Cost 95 208 129 144 PBT 157 303 389 529 Taxes 43 92 116 155 PAT 114 211 2
Slide 35: Standalone balance sheet
35 Particulars (INR Mn) FY13 FY14 Particulars (INR Mn) FY13 FY14 Shareholder Funds Non Current Assets Share Capital – Equity 120 120 Fixed Assets 2,941 3130 Reserves & Surplus 1562 1,851 1,682 1,971 Non Current Investment 0 1 Total - Shareholder Funds Non Current Liabilities Long term Loan and Advan
Slide 36: Revenue, EBITDA, net profit and return ratios
36 Total Revenue & EBIDTAM% Net Profit INR Mn INR Mn 8000 7191 14.00% 400 374 12.73% 7000 6026 12.40% 12.00% 350 6000 5338 11.65% 300 273 10.00% 5000 42139.07% 8.00% 250 211 4000 200 6.00% 3000 150 114 2000 4.00% 100 1000 2.00% 50 0 0.00% 0 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 EBITDA Efficiency R
Slide 37: Debt/equity, book value, dividend and working capital
37 Gross Debt/Equity Book Value Per Share 1.40 INR 1.2x 1.2x 180 1.20 153 160 1.00 0.9x 140 129 120 109 0.80 0.65x 94 100 0.60 80 0.40 60 40 0.20 20 0.00 0 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 Dividend Per Share Working Capital Days INR 7.00 35 33 6* 29 6.00 30 26 5.00 25 21 4 4.00 20 3 3.00 2.5
Slide 38: Contact and disclaimer
38 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