Cie Automotive India Ltd · NSE:CIEINDIA
Cie Automotive India — Mahindra CIE Automotive — FY2020 Earnings Presentation
53 slides from Cie Automotive India's earnings presentation, Feb 19, 2021
Slide 1: Mahindra CIE Automotive stock exchange cover letter
mahindra C / E Mahindra CIE Automotive Limited Mahindra Towers, P.K. Kurne Chowk, Worli, Mumbai 400 018, India Tel: +91 22 24931449 Fax: +91 22 24915890 www.mahindracie.com mcie.investors@cie-india.com SEC/2021/020 February 19, 2021 BSE Limited National Stock Exchange of India Limited Corporate Rela
Slide 2: Q4 and Full Year CY20 Results
Q4 and Full Year CY20 Results 19th February 2021 │ Mumbai 1
Slide 3: Disclaimer
Disclaimer Mahindra CIE Automotive Limited, herein referred to as MCAL provides a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute a prospectus,
Slide 4: Index
INDEX 1. KEY HIGHLIGHTS 2. OVERVIEW 3. Q4 CY2020 RESULTS 4. FULL YEAR CY2020 RESULTS 5. BALANCE SHEET AND CASH FLOW 6. EVOLUTION AND STRATEGY 7. MCIE IN STOCK EXCHNAGES 8. MARKET AND FORECASTS 9. SEBI RESULTS 3
Slide 5: 1. Key Highlights
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Slide 6: Key Highlights
KEY HIGHLIGHTS CY 2020 • CIE increased stake in MCIE from 56.28% to 60.18% • Composites vertical in India shifted to one location at Kanhe, Pune • Organizational improvements and new management structures implemented at › Stampings business in India › Forgings business in Europe • More than 25 custo
Slide 7: 2. Overview
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Slide 8: MCIE Overview
MCIE OVERVIEW LEGAL STRUCTURE CIE through its subsidiaries 60.18% 7
Slide 9: MCIE Technology Revenue Split
MCIE TECHNOLOGY REVENUE SPLIT TECHNOLOGY WISE BREAKUP MAGNETICS 3% 3% COMPOSITES GEARS/ MACHINING MAGNETICS 2% 1% COMPOSITES 6% 34% FORGING 11% CASTINGS 5% CASTINGS GEARS/ MACHINING 9% 18% 25% STAMPINGS ALUMINUM STAMPINGS 9% 11% 89% GEARS/ MACHINING FORGING ALUMINUM 12% FORGING 63% 8 8
Slide 10: MCIE – End Use Segments
MCIE – END USE SEGMENTS TECHNOLOGIES END USE SEGMENTS TOP CUSTOMERS • Forging 40% • Aluminium CARS + UTILITY Mahindra, Bajaj, • Stampings VEHICLES Maruti, Tata, Hero • Castings 32% 16% • Gears/ Machining TWO WHEELERS TRACTORS • Magnetic Products • Composites 5% 2% MHCV LIGHT COMMERCIAL VEHICLES NON
Slide 11: 3. Q4 CY2020 Results
3. Q4 CY2020 RESULTS 10
Slide 12: MCIE India Q CY Results
MCIE INDIA Q 4 C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Oct-Dec Change Oct-Dec Jul-Sep Oct-Dec 2020 Oct-Dec 2020 2020 2019 2020 v/s Oct-Dec 2019 v/s Jul-Sep 2020 SALES 9,702 17% 8,269 8,189 <6T 19.5% 19.2% MHCV 15.5% 102.0% EBITDA (*) 1,483 43% 1,040 1,116 Tract
Slide 13: MCIE Europe Q CY Results
MCIE EUROPE Q 4 C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Oct-Dec Change Oct-Dec Jul-Sep 2020 2019 2020 Source: IHS Global SALES 8,951 7% 8,361 8,192 Oct-Dec 2020 Oct-Dec 2020 EBITDA (*) 1,066 0% 1,068 814 v/s Oct-Dec 2019 v/s Jul-Sep 2020 Light Vehicles 1.6% 20.
Slide 14: MCIE Consolidated Q CY Results
MCIE CONSOLIDATED Q 4 C Y 2 0 2 0 R E S U LT S (INR Mio) Oct-Dec 2020 Change Oct-Dec 2019 Jul-Sep 2020 SALES 18,653 12% 16,632 16,381 EBITDA (*) 2,549 21% 2,109 1,929 EBITDA% 13.7% 12.7% 11.8% EBIT (*) 1,668 26% 1,321 1,080 EBIT % 8.9% 7.9% 6.6% EBT 1,611 33% 1,215 937 EBT% 8.6% 7.3% 5.7% (*) EBITDA
Slide 15: 4. Full Year CY2020 Results
4. FULL YEAR CY2020 RESULTS 14
Slide 16: MCIE India CY Results
MCIE INDIA C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Jan-Dec 2020 Change Jan-Dec 2019 Jan-Dec 2020 v/s Jan-Dec 2019 SALES 27,854 -18% 33,798 <6T -23.4% MHCV -54.0% EBITDA (*) 3,245 -30% 4,662 Tractors 11.4% EBITDA% 11.7% 13.8% Two Wheelers -22.6% Source: <6T is f
Slide 17: MCIE Europe CY Results
MCIE EUROPE C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Jan-Dec 2020 Change Jan-Dec 2019 Jan- Dec 2020 Source: IHS Global SALES 30,327 -28% 41,861 v/s EBITDA (*) 2,319 -56% 5,300 Jan-Dec 2019 EBITDA% 7.6% 12.7% Passenger Vehicles -22.1% EBIT (*) 923 -75% 3,754 MHCV
Slide 18: MCIE Consolidated CY Results
MCIE CONSOLIDATED C Y 2 0 2 0 R E S U LT S (INR Mio) Jan-Dec 2020 Change Jan-Dec 2019 SALES 58,181 -23% 75,660 EBITDA (*) 5,565 -44% 9,962 EBITDA% 9.6% 13.2% EBIT (*) 2,500 -63% 6,801 EBIT % 4.3% 9.0% EBT 1,953 -69% 6,278 EBT% 3.4% 8.3% (*) EBITDA: Net Operating Income + Depreciation, EBIT: EBT + fi
Slide 19: Other Details
OTHER DETAILS OTHER OPERATING REVENUE, OTHER INCOME AND EXCHANGE RATES For Q4 CY20 Full Year CY20 (INR Mio) India Europe Consolidated India Europe Consolidated Other Operating Revenue 570 353 923 1,447 873 2,320 Other Income 38 37 75 259 290 549 Exchange Rates Period INR/ Euro Average for Q4 CY20 88
Slide 20: 5. Balance Sheet and Cash Flow
5. BALANCE SHEET AND CASH FLOW 19
Slide 21: MCIE Consolidated Balance Sheet
MCIE CONSOLIDATED C Y 2 0 F U L L Y E A R R E S U LT S B A L A N C E S H E E T Million Rupees 31st Dec 2020 31st Dec 2019 Fixed Assets 67,474 61,008 Net Working Capital -349 1,087 Total Net Assets 67,125 62,095 Equity 49,084 46,338 Net Financial Debt (*) 12,755 11,488 Others (Net) 5,286 4,268 Total
Slide 22: MCIE Consolidated - Cash Flow and NFD
MCIE CONSOLIDATED - CASH FLOW AND NFD CY20 AS ON 31 DEC 2020 (Mn INR) MCIE EBITDA 5,565 Financial (548) Maintenance CAPEX (1,724) Tax Payment (481) OPERATING CASH FLOW 2,812 % EBITDA 51% Growing Capex (1,037) Working Capital Variation 1,436 INDAS16 Opening Balance (2,608) Others (1,870) FINANCIAL CA
Slide 23: 6. Evolution and Strategy
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Slide 24: Performance Evolution
PERFORMANCE EVOLUTION REVENUE EBITDA % 80000 76486 75660 16 15.2 70000 13.9 61651 13.7 14.2 60000 58181 14 13.8 13.3 13.2 50275 51214 13.5 50000 11.5 45284 12 12.7 41861 11.7 40000 11.1 34162 33429 35867 33798 10.9 31561 30327 9.8 10 30000 26072 27854 9.6 20000 16393 18103 8.5 8 8 7.6 10000 0 6 CY15
Slide 25: MCIE Strategy
MCIE STRATEGY CURRENT LANDSCAPE D I F F E R E N T I AT I N G B U S I N E S S S T R AT E G Y OPPORTUNITIES PRINCIPLES India (incl. Mexico) • Boost to exports from India • Growth › PLI › Value added products › China plus one ₋ machined castings, higher grade › Outsourcing from Europe magnets, complex
Slide 26: 7. MCIE in Stock Exchanges
7. MCIE IN STOCK EXCHANGES 25
Slide 27: Stock Evolution
STOCK EVOLUTION I N D E X E D F R O M 1 ST J A N U A R Y 2 0 1 5 MCIE Share Price (INR) Returns over the period Period High Low MCIE Nifty 50 index Nifty Auto Index 6 Month (1st July – 31st Dec 2020) 172 102.55 40.5% 18.1% 22.8% 12 Month (1st Jan – 31st Dec 2020) 178.05 61.65 0.2% -0.1% 0.5% 2 Years
Slide 28: Market and Forecasts
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Slide 29: India Market: Key Segments Update - Quarterly
INDIA MARKET: KEY SEGMENTS UPDATE - QUARTERLY CAUTIOUS OPTIMISM? Market - Production Numbers <6T Vehicles** MHCV Tractors Two Wheelers Period Mn Units Δ% Units Δ% Units Δ% Units Δ% CY20 3.2 -23.4 139,414 -54.0 863,125 11.4 17,080,047 -22.6 Q4 CY20 1.1 19.5 58,198 15.5 291,169 62.1 5,884,063 17.7 Q3
Slide 30: Market Outlook - India
MARKET OUTLOOK - INDIA • Passenger Vehicles ₋ Light Vehicles (less than 6 Tons – European Classification) Short Term: IHS forecasts production growth at a 22.5% between CY2020-CY 2021 Long term: IHS forecasts production growth at a CAGR of 10.2% over a period of 2020-2025 • MHCVs: Short Term: IHS* f
Slide 31: Europe Market Update - Quarterly
EUROPE MARKET UPDATE - QUARTERLY MARKET SLIDING Market - Production Numbers <6T Vehicles MHCV Period Mn Units Δ% Units Δ% CY 2020 16.2 -22.1% 463,678 -16.8 Q4 CY 2020 5.2 1.6 147,032 11.1 Q3 CY 2020 4.3 -6.9 121,161 -1.5 Q2 CY 2020 2.2 -60.8 77,506 -49.6 Q1 CY 2020 4.6 -17.9 117,979 -20.3 Source: IH
Slide 32: Market Outlook - Europe
MARKET OUTLOOK - EUROPE • EU – Light Vehicles: ‒ IHS Global has forecasted that the Light Vehicle production will grow in CY21 by 14.7% as compared to CY20 ‒ and will grow at CAGR of 4.6% between CY20 to CY25 albeit on a lower base • EU – MHCV’s: ‒ IHS Global has forecasted* that the Europe MHCV pro
Slide 33: SEBI Results
SEBI RESULTS 32
Slide 34: Statement of Profit & Loss Account - Standalone
S TAT STATEMENT E M E NAND OF STANDALONE T CONSOLIDATED O F P R ORESULTS F I T FOR & THEL O S S AND QUARTER A CAUDITED C O URESULTS N T SFOR - STHE TAYEAR ND A L31ODECEMBER, ENDED N E 2020 Rs. in Million Standalone Quarter Ended Year ended Particulars 31 December, 2020 30 September, 2020 31 December
Slide 35: Statement of Profit & Loss Account - Standalone Cont'd
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S - S TA N D A L O N E C O N T ’ D . . STATEMENT OF STANDALONE AND CONSOLIDATED RESULTS FOR THE QUARTER AND AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2020 Rs. in Million Standalone Quarter Ended Year ended Particulars 31 December, 2020 30
Slide 36: Statement of Profit & Loss Account - Standalone Cont'd
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S - S TA N D A L O N E C O N T ’ D . . Rs. in M illion Standalone Quarter Ended Year ended Particulars 31 December, 2020 30 September, 2020 31 December, 2019 31 December, 2020 31 December, 2019 (Refer Note 11) Un Audited (Refer Note 11) Audited
Slide 37: Balance Sheet - Standalone
B A L A N C E S H E E T - S TA N D A L O N E Balance Sheet as at 31 December, 2020 Rs. in M illion Standalone Particulars 31 December, 2020 31 December, 2019 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 11,021 9,953 (b) Capital Work in progress 688 384 (c) Goodwill
Slide 38: Balance Sheet - Standalone Cont'd
B A L A N C E S H E E T - S TA N D A L O N E C O N T ’ D . . Balance Sheet as at 31 December, 2020 Rs. in M illion Standalone Particulars 31 December, 2020 31 December, 2019 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,790 3,790 (b) Other Equity (i) Share premium 15,
Slide 39: Cash Flow - Standalone
C A S H F L O W - S TA N D A L O N E Statement of Cash Flows for the year ended 31 December, 2020 Rs. in Million Particulars 31 December, 2020 31 December, 2019 I Cash flows from operating activities Profit before tax 1,015 2,636 Adjustments for: Finance costs recognised in profit or loss 119 136 In
Slide 40: Cash Flow - Standalone Cont'd
C A S H F L O W - S TA N D A L O N E C O N T ’ D . . Statement of Cash Flows for the year ended 31 December, 2020 Rs. in Million Particulars 31 December, 2020 31 December, 2019 II Cash flows from investing activities Purchase of Property, Plant and Equipment (1,217) (1,871) (Purchase)/Sale of curren
Slide 41: Statement of Profit & Loss Account - Consolidated
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S - C O N S O L I D AT E D STATEMENT OF STANDALONE AND CONSOLIDATED RESULTS FOR THE QUARTER AND AUDITED RESULTS FOR YEAR ENDED 31 DECEMBER, 2020 Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 30 September, 2020 3
Slide 42: Statement of Profit & Loss Account - Consolidated Cont'd
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S - C O N S O L I D AT E D C O N T ’ D . STATEMENT OF STANDALONE AND CONSOLIDATED RESULTS FOR THE QUARTER AND AUDITED RESULTS FOR YEAR ENDED 31 DECEMBER, 2020 Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 30 Sep
Slide 43: Statement of Profit & Loss Account - Consolidated Cont'd
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S - C O N S O L I D AT E D C O N T ’ D . . Rs. in M illion Consolidated Quarter Ended Year ended Particulars 31 December, 30 September, 2020 31 December, 31 December, 31 December, 2020 2019 2020 2019 (Refer Note 11) Un Audited (Refer Note 11) A
Slide 44: Balance Sheet - Consolidated
B A L A N C E S H E E T - C O N S O L I D AT E D Balance sheet as at 31 December, 2020 Rs. in M illion Consolidated Particulars 31 December, 2020 31 December, 2019 Audited Audited I ASSETS 1 NON-CURRENT ASSETS (a) Property, Plant and Equipment 29,709 25,404 (b) Goodwill 37,554 35,260 (c) Other Intan
Slide 45: Balance Sheet - Consolidated Cont'd
B A L A N C E S H E E T - C O N S O L I D AT E D C O N T ’ D . . Balance sheet as at 31 December, 2020 Rs. in M illion Consolidated Particulars 31 Dec ember, 2020 31 Dec ember, 2019 Audited Audited II EQUITY AND LIABILITIES 1 EQUITY (a) Equity Share Capital 3,790 3,790 (b) Other Equity (i) Share pre
Slide 46: Cash Flow - Consolidated
CASH F L O W - C O N S O L I D AT E D Statement of Consolidated cash flows for the year ended 31 December, 2020 Rs. in M illion Particulars 31 December, 2020 31 December, 2019 I Cash flows from operating activities Profit before tax 1,953 6,279 Adjustments for: Finance costs recognised in profit and
Slide 47: Cash Flow - Consolidated Cont'd
C A S H F L O W - C O N S O L I D AT E D C O N T ’ D . . Rs. in M illion Particulars 31 December, 2020 31 December, 2019 Net cash inflow from operating activities 5,393 10,272 II Cash flows from investing activities (Purchase)/Sale of current investments (1,376) 5,911 Net gain on sale of Investment
Slide 48: Segment Revenue Results
S E G M E N T R E V E N U E R E S U LT S Rs. in M illion Consolidated Quarter Ended Year ended 31 Dec ember, 30 September, 31 Dec ember, 31 Dec ember, 31 Dec ember, Partic ulars 2020 2020 2019 2020 2019 Un Audited Audited Audited (Refer Note 11) (Refer Note (Refer Note (Refer Note 1 Segment Revenue
Slide 49: Notes to Standalone and Consolidated Results
NSTATEMENT O T E SOF STANDALONE AND CONSOLIDATED RESULTS FOR THE QUARTER AND AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER, 2020 Notes: 1 The statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies
Slide 50: Notes Cont'd
NOTES CONT’D… 6 The Government of India has proposed changes in the Income Tax Act in the Union Budget 2021. The management is in the process of evaluating the impact of these proposed changes on the standalone and consolidated results of the Company. As per Ind AS 10 "Events after the Reporting Per
Slide 51: Notes Cont'd
NOTES CONT’D… 9 The Company acquired 100% equity shares of Aurangabad Electricals Limited (AEL) on April 9, 2019. Hence, the consolidated numbers for year ended December 31, 2019 includes amounts of AEL from April 9, 2019. Accordingly, the consolidated numbers for the year ended December 31, 2020 ar
Slide 52: Annexure A - Subsidiaries and Associate Companies
NOTES CONT’D… Annexure A - Subsidiaries forming part of the M ahindra CIE Automotive Limited (M CIE) Group and its Associate Companies S. No. Name of the entity Relationship % of Holding Country of Incorporation 31 December, 2020 1 Stokes Group Limited (SGL) Subsidiary of M CIE 100% UK 2 Stokes Forg
Slide 53: Mahindra CIE
Mahindra ClE
Mahindra CIE Automotive — FY2020 Earnings Presentation on 6ix