Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Non-Deal Roadshow (January 2022)
41 slides from Samvardhana Motherson International's roadshow presentation, Jan 5, 2022
Slide 1: Filing cover letter to stock 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 January 5, 2022 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floo
Slide 2: Creating value for all stakeholders
Creating value for all stakeholders. January 2022
Slide 3: Table of contents
Table of contents. • Motherson 2.0 • Samvardhana Motherson International Ltd. (SAMIL) Erstwhile Motherson Sumi Systems (MSSL*) • Motherson Sumi Wiring India Ltd. (MSWIL) • Appendix 2 * Post re-organisation the name of Motherson Sumi Systems Ltd (MSSL) will be changed to Samvardhana Motherson Interna
Slide 4: Motherson 2.0
Motherson 2.0 3
Slide 5: 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 MSSL shareholders** since Click to view the clip CAGR of 33% MSSL IPO CAGR of 34% * Post re-organisation the
Slide 6: Creating value for shareholders
Creating value for shareholders. Key Objectives 01 Simplification 02 Alignment of 03 Creation of Enhanced of the Group the interests of strong platforms value for structure all stakeholders for growth shareholders EPS accretion* Samvardhana 5% Motherson Sumi Motherson 33.4% Wiring India Ltd. Interna
Slide 7: Creation of two high-growth companies
Creation of two high-growth companies. Samvardhana Motherson Motherson Sumi Wiring International Ltd. (SAMIL) India Ltd. (MSWIL) Erstwhile Motherson Sumi Systems (MSSL*) • Well diversified company across • Focus on India wiring products, customers and countries harnesses • Product portfolio favorabl
Slide 8: Indicative timelines for scheme execution
Indicative timelines for scheme execution. Announcement Appointed Proposal NCLT Scheme Record date Listing and Merger date for approved by approval effective date for MSWIL to effective trading of Demerger1 shareholders be demerged Date MSWIL shares2 2nd July, 1st April, 29th April, 23rd 5th January
Slide 9: Samvardhana Motherson International Ltd. (SAMIL)
Samvardhana Motherson International Ltd. (SAMIL) Erstwhile Motherson Sumi Systems (MSSL*) 8 * Post re-organisation the name of Motherson Sumi Systems Ltd (MSSL) will be changed to Samvardhana Motherson International Ltd. (SAMIL)
Slide 10: Vision: to be a globally preferred solutions provider
VISION To be a Be part of the globally success preferred of our customers. solutions provider. 9 Photo by Olympic Spaceport
Slide 11: Continue to be guided by the same principles
Continue to be guided by the same principles. 10 * Quality, Cost, Design, Delivery, Management, Safety, Environment, Sustainability
Slide 12: Vision 2025 targets: USD 36 billion revenues
No. 2 No. 1 3CX10 USD 36 billion No country, customer or revenues in 2024-25 component should with 40% ROCE contribute more than (consolidated) 10% to our revenues No. 3 No. 4 75% of revenues from Up to 40% of automotive industry, consolidated 25% from new profit as divisions dividend 11 USD 36bn de
Slide 13: SAMIL (erstwhile MSSL)
SAMIL. (erstwhile MSSL*) Well diversified company Continued participation across products, customers in the Indian auto and countries growth story Platform for future growth Partnerships through organic and with global inorganic route technology leaders SAMIL Powertrain neutral Shareholders to gain
Slide 14: 3CX10: Component wise
3CX10: Component wise. Revenue share H1 – SAMIL Interiors Exteriors Engineering Well diversified Polymer & Modules 48% 20% 23% 5% across four key verticals with leadership across Wiring Harness most segments. 30% > 98% of portfolio is Vision Systems 18% favorable positioned for Share of non- changes
Slide 15: Continued focus on Electrification
Continued focus on Electrification. Share of revenues from …with multiple order wins EV programs rising… • Wiring Harnesses – Won multiple new orders for electric trucks and buses (globally) and electric passenger vehicles (India). • Module and Polymer – Won new orders across premium Passenger Vehic
Slide 16: 3CX10: Customer wise
3CX10: Customer wise. Revenue share H1 – SAMIL post re-organisation Customer Segment** Top 15 Customers** Mercedes Benz 11% Passenger Vehicles 69% Audi 10% Volkswagen 8% Suzuki/ Maruti Suzuki 5% Commercial Vehicles 15% BMW 4% Hyundai 4% Porsche 4% Auto Components 3% Renault 4% Daim ler trucks* 4% PS
Slide 17: Country wise
Country wise. Revenue share H1 – SAMIL post re-organisation India accounted for 20% of India 20% revenues and > 40% of PAT in USA 19% H1 FY22. Germany 15% China 12% Hungary 6% Mexico 5% France 5% Emerging India is our Spain 5% markets1 account primary market for 57% of total for testing and South Ko
Slide 18: Sustainability at Motherson
Sustainability at Motherson. Sustainability Development. Major Milestones • Dow Jones Sustainability Indices (DJSI) Environment • Marks entry on the DJSI for the first time in 2021. • Only Indian automotive component company to achieve qualification to the DJSI Emerging Markets index. • United Natio
Slide 19: Strong cash generation
Strong cash generation. In INR crores 5,043 Despite a tough 4,899 4,688 H1, the overall cash flows remain healthy with controlled capex spends. 2,285 2,445 1,989 EBITDA at 2.0x FY20 FY21 H1FY22* Annualised of overall capex in H1. EBITDA Capex *H1FY22 EBITDA and capex have been annualised to provide
Slide 20: With low leverage levels
With low leverage levels. In INR crores 2.0 1.9 2 1.7 * H1 leverage of 1.6 1. 8 1,422 1.7x in Sep-21 1.4 * 1,356 1. 6 despite two 1,440 tough quarters 1,395 1. 4 1. 2 1,376 1 9,293 8,794 0. 8 8,001 7,474 0. 6 6,027 0. 4 0. 2 Leverage levels 0 remain well Mar-19 Mar-20 Mar-21 Jun-21 Sept-21 under the
Slide 21: Details of profitability across verticals
Details of profitability across verticals. SAMIL (erstwhile MSSL) Proforma financials H1 FY22 for combined entity Amount in INR crores Strong profitability Vertical Revenues EBITDA Margin across multiple Wiring Harness 10,754 973 9.1% verticals. Vision Systems 6,217 615 9.9% Modules & Polymer Produc
Slide 22: The best is yet to come
The best is yet to come. 21
Slide 23: Motherson Sumi Wiring India Ltd. (MSWIL)
Motherson Sumi Wiring India Ltd. (MSWIL) 22
Slide 24: Motherson Sumi Wiring India Ltd.
Motherson Sumi Wiring India Ltd. Pan India industrial Sustained leadership footprint, close to and competitive customer locations advantage in India Strong customer relationships Strong parentage and across OEMs with multiple access to world-class awards from customers technology MSWIL Consistently
Slide 25: Diversified and Pan India industrial footprint
Diversified and Pan India industrial footprint. M Pathredi Haldwani M Noida and 23 Wiring M D S NCR harness Proximity to customer M Pithampur plants* across locations India M Sanand D Nasik Lucknow M M D Pune Strategically located at multiple locations for de-risking M D Bengaluru Chennai M D S M Ma
Slide 26: Strong parentage and access to world-class technology
Strong parentage and access to world-class technology. Samvardhana Motherson Sumitomo Wiring Systems International Ltd (SAMIL) (SWS) Erstwhile Motherson Sumi Systems (MSSL*) • Sourcing of wires and • Sourcing of components. components. • Technical assistance. • Sharing of common support functions. •
Slide 27: Enhancing partnerships through increased localisation
Enhancing partnerships through increased Increasing Complexity localisation. Integrating advanced technology ● BCM ● Junction Box Design & Manufacturing ● PCB Based PDB ● 025 Series ● Relay and component fuse boxes ● High voltage & ● Ultra slim and EV application ● Grommet inners ISO wires ● SMART P
Slide 28: Well positioned to leverage industry mega trends
Well positioned to leverage industry mega trends. Industry macro Rising premiumization / Alignment to user’s digital Sustainable technologies Alternate / Electric trends customization lifecycle – connectivity (BS VI / safety regulations) Powertrain Opportunities Increasing content Adding high-value
Slide 29: Growth outpacing PV production trends in India
Growth outpacing PV production trends in India. DWH Revenues FY10-21 CAGR 13.7% 42 45 39 41 DWH Revenues (INR Bn) 36 India PV Volumes* (Mn) 29 30 26 27 21 17 10 3.8 4.0 4.0 3.2 3.2 3.4 3.4 3.0 3.1 3.1 3.0 2.4 CAGR PV production - FY10-21 2.0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY
Slide 30: Best-in-class operating performance
Best-in-class operating performance. Adjusted EBIDTA, Margin and ROCE (%) In INR crores 48% 44% • FY21 and H1 FY22 impacted by 41% COVID related production shutdowns. 13.4% 11.5% 12.0% • Profitability impacted vs previous years by higher commodity price pass through. • Expected normalisation of mark
Slide 31: Annexure
Annexure Division-wise information for SAMIL (Erstwhile Motherson Sumi Systems MSSL*) SAMIL FY21 – Vertical wise financials MSWIL – Financials 30 * Post re-organization the name of Motherson Sumi Systems Ltd (MSSL) will be changed to Samvardhana Motherson International Ltd. (SAMIL)
Slide 32: Wiring Harness
Wiring Harness. Customer Highlights • Increasing traction in across segments, new customer wins, added speciality products and expanded rolling stock (railways) presence in new geographies. Revenue EBITDA • Won multiple new orders from OEMs for electric H1 share share commercial vehicles / buses (gl
Slide 33: Wiring Harness: global opportunities
Wiring Harness. Global Opportunities High growth potential in global wiring harness market, leveraging the global know how of the group For High voltage wiring harness For EEDS (Electrical & Electronics Distribution Systems) Electric Vehicle high voltage wiring Automotive software and Electrical and
Slide 34: Vision Systems
Vision Systems. Customer Highlights • Continued focus on SUVs, with more than 40% of new business won (last year) form SUVs. • Strong traction within EV OEMs with more than one Revenue EBITDA third market share. H1 share share • New addition of a global premium 2W OEM. 18% 20% Business background Pr
Slide 35: Modules & Polymer Products
Modules & Polymer Products. Customer Highlights • Developed specialised products and solutions for electric vehicle specific requirements. • Won new orders across premium PV OEMs and key Revenue EBITDA CV manufacturers globally. H1 share share 48% 42% • Adjacent expansion in Two-Wheelers & White Goo
Slide 36: Other businesses (1/2)
Other businesses (1/2) Lighting & Electronics + Precision Metal & Modules. Revenue EBITDA H1 share share Lighting & Electronics 4% 5% • Continued traction in LED adoption resulting in strong growth outlook. Lighting and Electronics • Developing new styling concepts, which have enhanced pricing and v
Slide 37: Other businesses (2/2)
Other businesses (2/2) Non-automotive businesses. Aerospace Logistics • Focus areas of aerostructures, systems • Joint venture with Hamakyorex Co., Ltd. and cabin parts. which is one of the premium car carrier Business background • Announced acquisition* of 55% stake in companies of Japan. • Target
Slide 38: SAMIL vertical wise proforma financials FY21
Samvardhana Motherson International Ltd. (SAMIL). Vertical wise Proforma financials for combined entity Amount in INR crores (FY 21) Vertical Revenues EBITDA Margin Wiring Harness 18,109 1,825 10.1% Vision Systems 13,014 1,433 11.0% Modules & Polymer Products 33,237 2,208 6.6% Others1 3,390 316 9.3%
Slide 39: SAMIL proforma financials for combined entity
Samvardhana Motherson International Ltd. (SAMIL). Proforma financials for combined entity Amount in INR crores Financials FY21 Q1 FY22 Q2 FY22 H1 FY22 Revenue from operation 58,225 16,408 14,415 30,823 EBITDA 4,688 1,367 1,082 2,449 EBITDA Margin (%) 8.1% 8.3% 7.5% 7.9% EBIT 1,662 589 318 907 EBIT M
Slide 40: MSWIL proforma financials
Motherson Sumi Wiring India Ltd. (MSWIL). Amount in INR crores ASSETS Proforma financials Property, plant and equipment March 31, 2021 156 Amount in INR crores Right-of-use assets 14 Financial assets 11 Financials FY21 Q1 FY22 Q2 FY22 H1 FY22 Deferred tax assets (net) 26 Other non-current assets 15
Slide 41: Thank you
Thank you. Safe harbour This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncerta
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