Minda Corp. Ltd. · NSE:MINDACORP
Minda — Q4 FY2022 Earnings Presentation
41 slides from Minda's earnings presentation, May 17, 2022
Slide 1: Exchange filing cover letter for earnings presentation
May 17, 2022 The Officer-In-Charge (Listing) Head - Listing Operations, Listing Department BSE Limited, National Stock Exchange of India Ltd., P.J. Towers, Dalal Street, Fort, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 001 Bandra (East), Scrip Code: 538962 Mumbai - 400 051 Scrip Code: MINDAC
Slide 2: Q4 FY22 Earnings Presentation
Q4 FY22 Earnings Presentation Spark Minda Disrupt, Innovate, Lead May 17, 2022
Slide 3: Agenda
Tesla’s 3 Pronged Approach Quarter & Full Year Updates Q4 & FY22 Performance Strategic Pillars of Growth Company Snapshot Innovation and Focus Areas CSR, ESG and Awards Financials in Details
Slide 4: Highlights of Q4 & FY22 Performance
Highlights of Q4 & FY22 Performance Enhancing the Core and Deepening Capabilities Q4 FY2022 FY2022 Revenue Growth for the Quarter continues to outperform FY22 Revenue Growth of 25.8% YoY despite challenging the Industry performance macro-economic scenario & semi conductor shortage Improved Double Di
Slide 5: Revenue Trend
Consistent and Sustainable Market Beating Profitable Growth Rs. million 19% Revenue Trend 9,478 Third Successive 7,941 6,561 7,313 7,398 7,383 Quarter with • Highest Ever : Quarterly Consistent and Operating Revenue of Rs. 9,478 Sustainable Market Beating million with growth of 19.4% on Growth Y-o-Y
Slide 6: One of India's Leading Automotive Component Company
One of India’s Leading Automotive Component Company Diversified product portfolio, global customers, strong manufacturing and advanced R&D with six decades of automotive experience Capital Market Information Revenue Rs. 29,759 mn (FY2022) (as on 31st March 2022) - Mechatronics BSE / NSE Ticker 53896
Slide 7: Revenue Breakdown - FY22
Revenue Breakdown - FY22 By Geography By End Market By Business Verticals South East Asia After Market Passenger Europe & North 5.5% 15.2% Vehicles America Information & 17.6% 10.3% Connected 4.8% Systems* 9.2% 15.7% 11.0% 43.3% Commerci 42.3% al Vehicles 20.9% 18.5% 57.7% 85.9% 52.4% India Mechatro
Slide 8: Indian Automotive Industry Performance – FY22 & Q4 FY22
Indian Automotive Industry Performance – FY22 & Q4 FY22 FY22 Growth Commentary Auto Industry 1.2% (3.5)% • Supply chain issues arising due to global 23.62 23.89 geo-political tensions and semi-conductor 18.35 17.71 shortage continue to weigh on the recovery (0.4)% 19.2% for Auto industry 28.9% 23.3%
Slide 9: Consolidated Performance – Q4 & FY22
Consolidated Performance – Q4 & FY22 Q4 FY22 Q3 Q4 FY22 Including Without Including Without FY21 (Rs. Million) FY22 FY21 MIL* MIL MIL* MIL Operating Revenue 9,478 8,095 7,383 7,941 29,759 28,376 23,679 Growth % 28.4% 19.4% 25.7% EBITDA 1,077 882 787 890 2,946 2,751 2,170 Margin (%) 11.4% 10.9% 10.7%
Slide 10: Business Verticals Performance – Q4 FY22
Business Verticals Performance – Q4 FY22 Quarterly Commentary – Q4 FY22 vs Q4 FY21 Full Year (in Rs. mn) (in Rs. mn) Mechatronics, Aftermarket Mechatronics and Aftermarket: 16,870 Mechatronics, Aftermarket 4,456 4,456 4,705 • The revenue stability was supported by strong 13,653 fundamentals, increas
Slide 11: Translating Strategy into Results
Translating Strategy into Results (in Rs. Mn) Industry Leading Growth FY19 FY20 FY21# FY22 Higher Revenue growth compared to Industry Volume Growth 6.2% (14.7)% (12.9)% 1.2% Industry growth Minda Corp Revenue Growth 19.2% (9.0)% 6.5% 25.7% Improving and stable operating margin profile Revenue, EBITD
Slide 12: Consolidated Leverage Position
Consolidated Leverage Position Particulars (Rs. mn) Mar 31st, 2022 Mar 31st, 2021 Net Worth 13,301 11,466 Gross Debt 3,913 4,832 Less: Cash & Cash Equivalents (Inc. FDR) 3,360 4,993 Net Debt 553 (161) Net Debt / Net Worth 0.04x - ROCE Annualised Particulars Mar 31st, 2022 Mar 31st, 2021 (excluding Q
Slide 13: Wholly Owned Subsidiary/ Joint Ventures
Wholly Owned Subsidiary/ Joint Ventures Joint Ventures with Leading Global Firms Rs. Mn Vehicle Access Systems Technology Infac Elecs Co. Ltd, Republic of Korea Minda Instruments Limited (VAST) LLC, USA 2021 2015 51% ownership 2004 (Minda INFAC Pvt. Ltd) 50% ownership Electronics Manufacturing Excel
Slide 14: Business Performance - FY22 Order Won
Business Performance - FY22 Order Won Replacement Business New Business Mechatronics Information & Plastics & Interiors Others Connected Systems Rs. 27,060 mn Rs. 25,512 mn Rs. 1,979 mn Rs. 4,713 mn FY22 Lifetime Order Won FY22 Lifetime Order FY22 Lifetime Order FY22 Lifetime Order Won Won Won Rs. 5
Slide 15: Strategic Pillars of Growth
Strategic Pillars of Growth
Slide 16: Strategic Pillars of Growth Outcome
Strategic Pillars of Growth Strategic Pillars of Growth Outcome ✓ Transform and become complete solution provider and partner of OEM’s Focus on Innovation and ✓ Cost leadership in manufacturing and Enhancing the Core Technology Thought leadership position in Safety Security System | Wiring Harness |
Slide 17: 1. Enhancing the Core
1. Enhancing the Core Safety Security Wiring Harness Die-Casting Division Instrument Cluster System Division Only Indian Setting up state Emerging as a Company of the art tool preferred cost- with a room facilities in effective global capability to component partner for division for Turbocharger Min
Slide 18: 2.1 Innovation and Technology
2.1 Innovation SPARK and Technology MINDA 3 - Pronged Approach : 3 - Pronged Approach Development of path breaking SMART Key Setting up own R&D Unit solution State-of-the-art in-house R&D facility for advanced Setting up of a New Vertical Electronic 1 solutions Manufacturing Excellence Continuou
Slide 19: 2.2 Engineering Capabilities
2.2 Engineering Capabilities Spark Minda Technical Centre, Pune 200+ ~2.0% 450+ ~ 50 % in last 5 years of annual revenue Total IPs / Patents Filed R&D Spending Engineering Headcount 300+ Engineers | Embedded Software EMI / EMC Lab, Anechoic Chamber Accreditation Engineering Capabilities to Address F
Slide 20: 3. Electric Vehicle: Growth Opportunity
3. Electric Electric Vehicle: Vehicle: GrowthGrowth Opportunity Opportunity Most of our Products are Electric Vehicle Agnostic In INR Potential EV Kit Value 16,000-20,000 8,000-10,000 2,000-2,500 2,000-3,000 4,000-4,500 New Product Increase in Increase in under content in Legacy Content content in d
Slide 21: 3.1 Key Business Wins in FY22 and Clientele in EV Segment
3.1 Key Business Wins in FY22 and Clientele in EV Segment DC to DC Converter Battery Charger Keyless System Wiring Harness First Time Product First Time Product New Tech Legacy Low Voltage EV WH (Non-Legacy Product) (Non-Legacy Product) Product (Legacy Product) Key Customer Key Customer Key Customer
Slide 22: Value Proposition
ValueProposition Value Proposition High value, Technologically advanced products; Global presence with 32 plants Cost leadership in Manufacturing and Thought leadership position in Technology Offering Advanced Technology products and system solutions in Light weighting, Active Safety, Connected, Ele
Slide 23: Company Snapshot
Company Snapshot
Slide 24: SPARK MINDA - Kaleidoscope
SPARK MINDA - Kaleidoscope Leading Automotive Component Supplier – Since 1958 16,000+ 7 WORKFORCE PARTNERSHIPS 33 PLANTS/OFFICES INR 35,538 million 14 13 REVENUE* INDIA NORTH INDIA WEST 3 3 INDIA SOUTH ASEAN VISION To be a dynamic, innovative and profitable global automotive organization for emerging
Slide 25: Schematic Representation of Minda Corporation
Schematic Representation of Minda Corporation Promoter Share Holding Public & Other Share Holding 64.7% 35.3% Minda Corporation Limited Overseas Domestic Operations India JV’s (100% owned) ⚫ Safety Security Division ⚫ ASEAN Group ⚫ Die Casting Division ⚫ Minda VAST (50%) ⚫ Starter Motors & Alternato
Slide 26: Key Products across various Business Verticals
Key Products across various Business Verticals Mechatronics Information & Connected Systems Plastics & Interiors Aftermarket (Business Vertical1) ( Business vertical 2 ) ( Business vertical 3 ) ( Business vertical 4 ) Ignition Smart Key Speedometer Cup Holder Switch Cum System Spares of BV1 &BV2 Ste
Slide 27: Board of Directors
Board of Directors Ms. Pratima Ram Non-Executive - Independent Director On the Board of Havells India, Suzlon Energy, Deccan Gold Mines Limited, SF Forge Limited & CFO Earnings Presentation Page 26 of 43
Slide 28: Leadership Team
Leadership Team N. K. Modi Vinod Raheja Neeraj Mahajan ED & CEO – MCL GCFO GCMO SMAD & Uzbekistan business 29 years of global Arvind Chandra Biranchi Mohapatra experience as CFO in 35 years of experience in Auto 30 years in India and overseas CEO, BV I CEO, BV II with OEMs and Auto pharmaceuticals a
Slide 29: ESG, CSR and Awards
ESG, CSR and Awards
Slide 30: Sustainability Framework
Sustainability Framework Earnings Presentation Page 29 of 43
Slide 31: Environment
Environment The Goal of a Sustainable Business Strategy is to make a Positive Impact on Environment and Society ISO 14001:2015 • Low-Carbon Products: o Focused on developing products for changing emission regulations i.e., BS IV to BS VI Certified o Products for new vehicle segments such as construc
Slide 32: Social
Social Key themes for CSR are Education, Livelihood Promotion, Empowerment of Persons with Disability, Healthcare, Community Infrastructure and Environment • Social Strategy: 12 UN SDGs o Rs. 38.6 million spent on CSR activities and ober 5000+ lives impacted Reconciled o Undertook Aakarshan Skill de
Slide 33: Governance
Governance Ensures Fairness, Accountability, Responsibility and Transparency to all its Stakeholders • Board of Directors: The Board Committees are set up under the formal approval of the Board, to carry out clearly defined roles which are considered to be performed by Members of the Board, as a par
Slide 34: Key ESG Initiatives
Key ESG Initiatives Material Saving Initiatives : Adoption of Just in Intelligent Rider Assistance Dengue awareness session at Kakklur Plant, awareness Time (JIT) in inventory management to reduce System (iRAS) Solution for 2- and resources extended to prevent dengue fever packaging boxes usage whee
Slide 35: Corporate Social Responsibility - Q4 FY2022
Corporate Social Responsibility - Q4 FY2022 Camp for Empowerment of People with Disabilities was conducted in Noida, HP Wow Convocation in Women’s Day Celebration PAN India Ceremony providing 886 fitments to Divyangs from Hasanpaur, Haryana across the country. Shakti Programme conducted Eye health c
Slide 36: Awards & Achievement
Awards & Achievement ▪ Business Vertical - 2 (Information & ▪ Business Vertical - 1 (Mechatronics) Connected System) received 4 Awards in ▪ Wiring Harness Division achieved 4 awards in received 39 awards in Q4 Q4 Q4 ▪ TAFE Chairperson acknowledged ▪ 15 Spark Minda group companies participated “Outst
Slide 37: Financials in Details
Financials in Details 2) Rad) * vn za iE
Slide 38: Income Statement
Income Statement Full Year Full Year % of % of (INR Mn) FY22 Revenue from FY21 Revenue from Operations Operations Revenue from Operations 29,759 23,679 Expenses Raw Materials Cost 18,758 63.0% 14,926 63.0% Employee Benefit Expenses 4,742 15.9% 3,827 16.2% Other Expenses 3,314 11.1% 2,757 11.6% Total
Slide 39: Balance Sheet
Balance Sheet As at As at As at As at Assets (INR Mn) 31 March 31 March Equity and Liabilities (INR Mn) 31 March 31 March 2022 2021 2022 2021 Non-current Assets Equity Share Capital 478 478 Property, Plant And Equipment 7,204 5,745 Other Equity 12,822 10,988 Capital Work-in-progress 325 178 Total Eq
Slide 40: Cash Flow
Cash Flow (INR Mn) FY 2022 FY 2021 Operating Cash Flow 3,061 2,145 Change in Working Capital (906) (1,078) Cash Generated from Operations 2,155 1,067 Income Tax Paid (486) (212) Net Cash generated from Operations 1,669 855 Capex (1,077) (1,306) Free Cash Flow to Firm 592 (451) Earnings Presentation
Slide 41: Forward looking statements disclaimer
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 Minda Corporation Limited (“Minda Corp” or the Company) future business developments