Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Non-Deal Roadshow (June 2023)
26 slides from Samvardhana Motherson International's roadshow presentation, Jun 13, 2023
Slide 1: Exchange cover letter: Investor Presentation
Samvardhana Motherson International Limited (formerly 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 June 13, 2023 National Stock Exchange
Slide 2: SAMIL: a platform for growth
SAMIL a platform for growth. June, 2023
Slide 3: Motherson
Motherson. • Motherson started in 1975 in Delhi as a partnership between Late Shrimati Swaran Lata Sehgal and Vivek Chaand Sehgal. • Our name signifies a relationship of trust with all stakeholders. 2
Slide 4: A purpose-driven company with a strong philosophy
A purpose-driven company with a strong philosophy. Value-creation Leadership Purpose Vision strategy Mindset Horizon (Why) (What) (How) (Who) (5-year plans.) Delight our customers and go after ‘impossible “To be goals’, so that we a globally USD 36 Bn preferred Motherson DNA provide sustainable + 40
Slide 5: Resulting in ~3,311x return to shareholders over 30 years
Resulting in ~3,311x* return to shareholders over 30 years. 01 02 03 04 05 Growing in India Focus on Europe Global expansion Consolidate to lead Motherson 2.0 Listed in 1993 Expanded into Large acquisitions and Added new customers, Group reorganisation and growth in new segments and exposure to all
Slide 6: Footprint across 41 countries
Footprint across Our global 41 countries. Hungary presence enables Slovakia Finland Estonia Lithuania us to support our Poland customers India Russia Czech wherever they Republic need us. Germany Netherlands Luxembourg UK Ireland Jersey France Portugal Spain Japan USA Morocco South Korea China Mexic
Slide 7: Motherson Group today
Motherson Strong Tier 0.5 Group today. automotive supplier. Motherson is one of the world’s leading specialised $12.7 Bn* manufacturing in yearly companies for OEMs. revenues. Operating over 300 facilities in 41 countries. Approx. 168,000 people as a group. 24 joint venture partners. • Revenues repr
Slide 8: Our Vision 2025
Our Vision 2025. No. 1 2025 USD 36 billion revenues in 2024-25 with 40% ROCE (consolidated) No. 2 3CX10 No country, customer or component should contribute more than 10% to our revenues No. 3 75% of revenues from automotive industry, 25% from new divisions No. 4 Upto 40% of consolidated profit as di
Slide 9: Platform for growth
Platform for growth. 01 02 03 04 Uniquely Carbon Net Powertrain USD ~ 70 Bn positioned with Zero by Agnostic Product Automotive significant 2040. Portfolio. booked business. Emerging market exposure. 05 06 07 08 Continuous and Consistent India - Engine Disciplined Diversifying to performance for gro
Slide 10: Sustainability at Motherson
01 Sustainability at Motherson. OUR AMBITION. We have set the goal of being Priority focus Carbon Net Zero on energy Major Milestones: management across our and • United Nations Global Compact (UNGC) current global renewables / operations by low carbon. • 2022 Communication on progress resulted in a
Slide 11: Highly diversified portfolio with 98% products that are powertrain agnostic
02 Highly diversified portfolio with 98% products that are powertrain agnostic. 01 02 Lighting & Precision Metals Technology & Wiring Vision Elastomers Electronics & Modules Industrial Solutions Harness Systems 29%1 18%1 Revenue USD 12.7 Billion 03 04 Modules & Emerging Polymer Products businesses A
Slide 12: Favourable automotive trends resulting in strong booked business of ~70 Billion USD
03.1 Favourable automotive trends resulting with strong automotive booked business of ~70 Billion USD. SAMIL’s Automotive ‘Booked Business’. Recovery of Favourable industry production volumes. dynamics. Further downside is limited, an 92.9 uptick in volumes will support our 83.8 83.5 growth. 20% Sta
Slide 13: Diversified and strong customer base
03.2 Diversified and strong customer base. Mercedes Benz 10% Audi 9% Motherson value creation chakra Volkswagen 7% Suzuki /Maruti 6% • Organic growth • Joint ventures • Derisking strategy in place. BMW 5% • Inorganic growth Customer Asked to • USD 70 Bn of automotive Porsche 5% trust. do more. booke
Slide 14: Uniquely positioned, Emerging & Developed market contributing equally
04 Uniquely positioned, Emerging & Developed market contributing equally... India 22% USA 18% Emerging market Developed market Germany 16% • Adding new facilities • Innovations and China 9% (auto and non-auto) technologies incubated in developed world • Cost competitive and trickle to emerging Hunga
Slide 15: India is a platform for growth
05 India is a platform for growth… …emerging as a strong manufacturing hub globally. Large pool of India Business SAMIL Launchpad SAMIL experienced Overview FY23 Incl. MSWIL Excl. MSWIL for global professionals in expansion. India. Revenue 19,313* 14,912* INR Cr. (YoY 27%) (YoY 30%) EBITDA 2,091** 1
Slide 16: Acquisitions is a key pillar of our growth strategy
28 06.1 Acquisitions is a key pillar Frame Manufacturing and Assembly Business* of DICV Pvt Ltd. of our growth strategy. India Asset purchase 29 Motherson Group has done 34 Ichikoh* Japan (Rear view acquisitions to provide a wide 23 mirror business) Share purchase range of solutions to our Wisetime
Slide 17: Full growth potential to be unlocked in coming times
06.2 Full growth potential to be No. Acquisitions. New Capability/ Rationale to support our customers. Closing Status. unlocked in coming times. 01 DICV Frame & Assembly Becomes principal manufacturer of long-members for the Frame Assembly business for Daimler trucks Closed (Feb 2023) Cumulatively t
Slide 18: Manufacturing capabilities and operational excellence is in our DNA
07.1 Manufacturing capabilities and operational excellence is in our DNA… Focus on Strong engineering Vertical integration operational KPIs. expertise. & localisation. The Motherson measurable Supporting a wide We focus heavily on vertical that guides us in all aspects range of industries. integrati
Slide 19: …which leads to seeding of non-automotive businesses
07.2 …which leads to seeding of non-automotive businesses. Revenue of Our new divisions leverage existing Motherson INR ~ 1,200 Cr. knowledge and capabilities into new industries. in FY 23. We call it the “power to do more”. 01 02 03 04 Technology & Aerospace Logistics Health & Industrial Solutions
Slide 20: Consistent growth in performance across each division
08.1 …Consistent growth in performance across each division. (Rs in crores) Revenue Modules & Polymer Wiring Harness# Products# Vision Systems# Emerging Businesses*# Reported SAMIL Growth 21% 19% 23% 35% 23% YoY 26,501 42,256 16,569 78,701 21,970 13,498 6,827 63,774 5,055 35,420 2,489 2,567 35,420 F
Slide 21: Consistent focus on improving Return on Capital Employed
08.2 Consistent focus on improving Return on Capital Employed (ROCE). ROCE on consolidated basis Inflated working capital and Inflated COVID subdued operating working lockdowns Volume performance capital decline due to global 40% Key drivers. headwinds • Normalisation of 18% working capital with 11%
Slide 22: Supported by continuous deleveraging
08.3 Supported by continuous deleveraging. Net Debt (including lease liability) to EBITDA Increase on account of merger of SAMIL* and inflated working capital. Inflated working capital. 1.9 Net Debt to EBITDA is 1.5 expected to 1.4 remain broadly in 1.2 the same range for announced transactions. FY2
Slide 23: Motherson Way: Unique Structure supported by Management Bandwidth
08.4 Motherson Way: Unique Structure supported by Management Professional management Bandwidth across Regional Chairman’s Business Divisions Global Functions regions. Office (RCO) 1. 5 RCOs (COA, COE, COSA, 1. Each business is 1. Group COO, CFO & KMP COSEA, COCN) independently run (COO / Professiona
Slide 24: The best is yet to come
The best is yet to come. 23
Slide 25: Thank you / Safe Harbour
Thank you. Safe Harbour The contents of this presentation are for informational purposes only and for the reader’s personal non-commercial use. The contents are intended, but not guaranteed, to be correct, complete, or absolutely accurate. This presentation also contains forward- looking statements
Slide 26: SAMIL Financial performance (FY 23)
SAMIL Financial performance (FY 23). Annexure (Rs in Crores) Revenues. EBITDA. 23% YoY 33% YoY 8.1% 78,701 7.5% 6,394 63,774 4,808 FY 22 FY 23 FY 22 FY 23 PBT. PAT. (before exceptional items and share of associates) (Concern Share) 75% YoY 193% YoY 2,548 1,496 1,456 510 FY 22 FY 23 FY 22 FY 23 Notes
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