Steel Strips Wheels Ltd · NSE:SSWL
Steel Strips Wheels — Investor Presentation (March 2016)
35 slides from Steel Strips Wheels's investor presentation, March 2016
Slide 1: Steel Strips Wheels Ltd.
STEEL STRIPS WHEELS LTD. Mar-16
Slide 2: The Company
The Company Group STEEL STRIPS GROUP Chairman R. K. Garg Managing Director Dheeraj Garg Business Category Design, manufacturing and marketing of Steel Wheel Rims for Passenger cars, Utility vehicles, 2/ 3 wheelers, Tractors, Light/ Heavy commercial vehicles and OTRs Manufacturing 1. Dappar (Punjab)
Slide 3: Foot Print
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Slide 4: Manufacturing Locations - Capabilities: Dappar, Chandigarh
Manufacturing Locations- Capabilities Dappar, Chandigarh Location: Chandigarh Ambala Highway Capacity: 7.25 Million for Passenger cars, DAPPAR MUV’s, 2& 3 Wheelers. PLANT 1.75 Million for Commercial Vehicles, Tractors and OTR’s. Area: 160,000 sq. meters of land with 55,000 sq. meters of bu
Slide 5: Manufacturing Locations - Capabilities: Oragadam, Chennai
Manufacturing Locations- Capabilities Oragadam , Chennai Location: App.35 Kms from Chennai Capacity: 6.0 Million for Passenger cars & MUV’s. Manpower: App. 700 people. CAR & MUV’S: Diameter - 12” to 20” Width - 2.5” to 8” Maximum Tensile - 600 MPa CHENNAI PLANT Mar-16
Slide 6: Manufacturing Locations - Capabilities: Jamshedpur, Jharkhand
Manufacturing Locations- Capabilities Jamshedpur , Jharkand Location: Close proximity to Tata Motors and Tata Steel. SOP: July 2010. Capacity: 1.6 Million for C.V. Wheels Manpower : App. 200 people. HCV Multi-Piece: 2/3 Pieces Width : 5.5"-13" JAMSHEDPUR Dia : 15"-24" PLANT Construction, Mi
Slide 7: Partners in Success
Partners in Success de © DAIMLER TATA ASHOK LEYLAND Daimler India Commercial Vehicles Pvt. Ltd. \ == VE COMMERCIAL VEHICLES = SWaRal MARI A VOLVO GROUP AND EICHER MOTORS JOINT VENTURE mazDa R + ahindra ESCORTS | Z LARSEN & TOUBRO CAE @ sexe INDUSTRIAL NEW FRONTIERS. NEW DREAMS Mar-16 G.
Slide 8: Partners in Success
Partners in Success Kibo. @€ JOHN DEERE E See Ta a, =) NA! Ve INTERNATIONAL GCA |p) DREMEL SING TECHS TRACTORS & MOTORS LTD. YyFyFW Aetstt SS @} Piaccio’ eA Ss SUZUKI HIONDA scooters INDIA LIMITED Mar-16 (STEEL STRIPS GROUP
Slide 9: Partners in Success
Partners in Success PSA PEUGEOT CITRO xl a @ Cc» SS MARUTI _ SSANGYONG SUZUKI genau NISSAN Mahindra Mar-16 (STEEL STRIPS GROUP
Slide 10: SSWL Export Customers Locations
SSWL Export Customers Locations Russia UK Germany Poland Canada Netherlands Slovakia France Romania Japan Austria Hungary Spain S Korea Italy Morocco Egypt U.A.E. Thailand Colombia Brazil Argentina Customers Locations Mar-16
Slide 11: New Domestic Business Allocations (Steel Wheels)
New Domestic Business Allocations (Steel Wheels) Vehicle Name SSWL SoB •Maruti Celerio 100% •Hondo Mobilio 100% •Hyundai Xcent 100% •Tata Zest 50% •Tata Bolt 50% •Maruti CIAZ 100% •M&M U-301 100% •M&M S101 100% •Maruti YAD 100% •Datsun Go Plus 100% •Renault Lodgy 100% •Maruti Baleno 100%
Slide 12: SSWL Market share of Current Business in Steel Wheels
SSWL Market share of Current Business in Steel Wheels Segment SoB Passenger Car 50% Tractor 38% Commercial Vehicle 38% OTR (Back Hoe Loader) 70%
Slide 13: Sales Performance Turnover Value
Sales Performance Turnover Value 250 TOTAL SALES TURN OVER USD MLN 240* 210 200 193 174 176 150 119 100 50 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Proj) *Without considering the impact of Steel Reduction passed on to Customer Mar-16
Slide 14: Sales Performance Turnover Volumes
Sales Performance Turnover Volumes 14 NO. OF WHEELS IN MLN 13.12 12.33 12 10.99 10.19 10.11 10 9.59 8 6 4 2 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Proj) Mar-16
Slide 15: Segment Wise Volume Mix
Segment Wise Volume Mix 100.0% 6.1% 7.4% 10.1% 90.0% 10.6% 7.7% 6.8% 80.0% 23.2% 25.4% 21.7% 70.0% 60.0% 50.0% 40.0% 30.0% 60.2% 59.5% 61.4% 20.0% 10.0% 0.0% 2013-14 2014-15 2015-16 (9 Month) Car & MUV Two/Three Wheeler Tractor Truck/OTR Mix is now tilting towards heavier wheels thus improving reali
Slide 16: Plant Wise Capacity Utilization
Plant Wise Capacity Utilization 250.00% 200.00% 62.22% 60.49% 150.00% 45.72% 80.19% 56.25% 100.00% 37.40% 50.00% 85.47% 88.22% 86.94% 0.00% 2013-14 2014-15 2015-16 (9 Month) Dappar JSR Chennai Utilization levels across all the facilities have moved up. The growth is substantial in case of Jamshedpur
Slide 17: Exports Turn over Volumes
Exports Turn over Volumes 1800 NO. OF WHEELS IN ‘000 s 1600 1400 1200 1000 800 1,533 1,500 1,426 1,285 600 1,206 919 400 200 0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Proj) Mar-16
Slide 18: SSWL Performance Q3/YTM Dec 2015-2016
SSWL Performance Q3/YTM Dec 2015-2016 Q3 Q3 Growth 9Month 9Month Growth 2015-16 2014-15 2015-16 2014-15 Gross Sale 31,385.95 29,534.71 6.27% 97,560.21 95,199.57 2.48% EBITDA 4,268.08 3,014.55 41.58% 11,732.13 9,168.81 27.96% 15.18% 11.30% 13.44% 10.68% PBT 2,120.40 1,177.47 80.08% 5,499.53 3,309.60
Slide 19: SSWL EPS Trend
SSWL EPS Trend 43.00 37.35 38.00 33.00 28.00 25.83 23.00 20.09 19.38 18.00 16.48 15.99 13.00 8.00 3.00 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Annualised)
Slide 20: Cash Accrual vs Secured Term Debt Repayment (Rs Cr)
Cash Accrual vs Secured Term Debt Repayment (Rs Cr) 110 105.0 100 90 80 74.7 76.9 77.6 71.4 70 72.0 60 57.5 53.1 50 56.6 52.9 40 2011-12 2012-13 2013-14 2014-15 2015-16 ( Est.) Cash Accrual Secured Term Debt Repayment
Slide 21: EBITDA Trend (Rs Cr)
EBITDA Trend (Rs Cr) 180.0 160.0 160.0 140.0 118.5 128.2 120.0 105.0 100.2 100.0 80.0 60.0 40.0 20.0 - 2011-12 2012-13 2013-14 2014-15 2015-16 ( Est.)
Slide 22: ROCE Trend
ROCE Trend 14.0% 13.2% 13.0% 12.0% 11.3% 11.5% 11.0% 10.0% 9.0% 8.5% 8.2% 7.5% 9.0% 8.0% 7.0% 7.3% 6.0% 6.7% 6.2% 5.0% 4.0% 2011-12 2012-13 2013-14 2014-15 2015-16 (Est.) ROCE% ROCE (Adjusted for revauation reserve & cwip) Even with Alloy Wheel project in 2016-17 ROCE is expected to remain in double
Slide 23: Financial Leverage (Consolidated)
Financial Leverage (Consolidated) 5.50 5.34 5.19 5.16 4.96 5.00 4.54 4.50 4.19 4.00 3.50 3.37 3.00 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (Est.) With Alloy Wheel in 2016-17, Leverage is expected to be around 4. Mar-16
Slide 24: SSWL Alloy Wheels Plant Mehsana, Gujarat
SSWL ALLOY WHEELS PLANT MEHSANA, GUJARAT IN TECHNOLOGICAL COLLABORATION WITH KALINK, KOREA
Slide 25: Geographical Location Mehsana, Gujarat
Geographical Location Mehsana, Gujarat H.O. - CHANDIGARH MKTG.BO 1. DAPPAR PLANT NEW DELHI MEHSANA PLANT 4. MEHSANA PLANT ( 300 km from Kandla port ) MKTG. BO MUMBAI 3. JAMSHEDPUR PLANT (300 km from Kolkata port) MKTG. BO PUNE 2. CHENNAI PLANT ( 50 km from port ) Location Distance Customer Plant Tot
Slide 26: Proposed Alloy Wheels Plant: Gujarat
Proposed Alloy Wheels Plant: Gujarat •Proposed location: Mehsana, Gujarat •Land measuring: 240,000 Sq Mt.; Product Size Range: 14” to 20” •Capacity: Production: 1.5 Mln & Painting: 2.5 Mln; Low Pressure Die Casting with Diamond Cutting •Investment: Approx USD 50 Mln. Kalink will invest USD 2 Mln in
Slide 27: Why Alloy Wheels?
Why Alloy Wheels? •Appearance Alloy wheels have enhanced aesthetic appeal and look much better than Steel wheels •Weight Lighter in weight compared to Steel wheels leading to better fuel efficiency of the car and helps in adhering to stricter emission norms •Strength Aluminum mixed with other metals
Slide 28: Why SSWL For Alloy Wheels?
Why SSWL For Alloy Wheels? •Wheel Manufacturing/Selling Experience SSWL already into manufacturing/selling steel wheel rims across all leading PV Manufacturers. With Alloy wheel, SSWL will be covering the entire portfolio covering Steel/Alloy Wheel under one umbrella. •Established Customer Base SSWL
Slide 29: SWOT analysis SSWL
SWOT analysis SSWL STRENGTH WEAKNESS 1. SSWL leading supplier of Steel Wheel rims in India. 1. Growth dependent of industry. Though Company is 2. Diversified customer base, all major OEM’s are covered mitigating the same with diversified customer base. 3. Globally accepted product and excellent repu
Slide 30: Alloy Wheels opportunity analysis
Alloy Wheels opportunity analysis Kosei-Minda, Chennai Enkei, Pune 1. Annual Installed Capacity of 0.84 Mln wheels 1. Annual Installed Capacity of 0.96 Mln wheels 2. Quality issues with high rejections % 2. No immediate capacity expansion plans 3. High operating costs due to expensive Power, Gas 3.
Slide 31: Technological Partner: Kalink
Technological Partner: Kalink Kalink, Korea Part of HIHO Group, Headquartered in Seoul, Korea with its presence in Aluminum Alloy Billet production, Trading of Aluminum for Mining and Smelting Group sales of more than USD 1.3 Billion Kalink has 2 plants for Aluminum Alloy wheels: Korea (1.6 Mln w
Slide 32: Proposed Time plan for SOP
Proposed Time plan for SOP Completion Sr. No. Activity Status month 1. Land Purchase May 2015 Completed 2. Project agreement sign off with Kalink Sep 2015 Completed 3. Groundbreaking Dec 2015 Completed 4. Building and Utilities completion Sep 2016 Planned 5. Equipment Erection Dec 2016 Planned 6. Co
Slide 33: Summary of Project Cost
Summary of Project Cost Mar-16
Slide 34: Secured Term Loan Repayment Trend
Secured Term Loan Repayment Trend 80.00 72.45 72.03 70.00 60.85 60.00 52.77 50.00 53.12 44.82 45.52 36.25 40.00 40.52 37.71 30.00 20.00 10.00 0.00 2014-15 2015-16 ( 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Est.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) M
Slide 35: Thank You
Thank You Mar-16
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