Gabriel India Limited · NSE:GABRIEL
Gabriel India — Investor Presentation (June 2017)
48 slides from Gabriel India's investor presentation, June 2017
Slide 1: Gabriel India Ltd. Investor Presentation – June 2017
Gabriel India Ltd. Investor Presentation – June 2017
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), has been prepared by Gabriel India Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form t
Slide 3: Index
Index Introduction 04 Business Overview 05 Strategy Going Ahead 20 Financial Highlights 23 Corporate Overview 35 3
Slide 4: Introduction
Introduction Incorporated The company, Gabriel India, in 1961 Experienced Pioneers Of Shock Absorber & Professional Management manufacturing in India Innovation Significant Presence in all Strong R&D with over channels of sales 21 patents filed in OE, Aftermarket and Exports Products & Processes Str
Slide 5: Business Overview
GABRIEL Business Overview | acrm ansysco C/ fovrecia @rsesirees casmex [EEE] Go) drower mane "mando <3
Slide 6: Pioneer of Ride Control Products
Pioneer of Ride Control Products… 2/3 Wheeler Front Hydraulic Shock Gas Shock Forks Absorbers Absorbers Passenger Car Gas Shock McPherson Cartridges Absorbers Struts After Market across all segments CV & Railways Shock Cabin Seat Absorbers Dampers Dampers 6
Slide 7: …with Diversified Revenue-Mix
…with Diversified Revenue-Mix Revenue (Rs. Mn) Segment-Wise: FY17 2/3 +28% Wheelers 55% 15,291 14,441 14,382 Passenger 12,745 cars Commercial 32% 11,960 Vehicles 13% Channel–Wise: FY17 Aftermarket OE 13% 83% FY13 FY14 FY15 FY16 FY17 Exports 4% 7
Slide 8: No OEM accounting for >20% of Sales
… & “No” OEM accounting for >20% of Sales 2/3 Wheeler Passenger Car CV & Railways 8
Slide 9: Strongly supported by Aftermarket Presence
… Strongly supported by Aftermarket Presence • Brand “Gabriel” synonymous with shock absorbers Brand “Gabriel” and struts • Market Share of ~45% • 19 CFA Locations & 375 Dealer Network Extensive Distribution Network • ~6,500 Retail Outlets supported by highly trained Sales Force • More than 500 prod
Slide 10: Strengthening Retailer Connect
Strengthening Retailer Connect… First-of-its-Kind Program to build loyalty among Retailers & Mechanics Aiming to connect with Key initiative to retailer emotionally, and strengthen brand understand their “Gabriel” and connect specific needs ELITE RETAILER with Retailers PROGRAM In 1st phase, Honouri
Slide 11: Reinforcing Brand Gabriel
… Reinforcing Brand “Gabriel” Hoardings/ Umbrella Distribution/ Branding at Bus Shelters Campus Branding OEM Managed Sports events 11
Slide 12: Creating Global Presence through Exports
Creating Global Presence through Exports Leveraging relationship with Dedicated Marketing team Caters to demand Global OEMs in India to for exploring opportunities from OEM & penetrate their Global in Overseas Markets Aftermarket Operations Exports to developed markets Focusing to increase presence
Slide 13: Aftermarket & Exports – Improving Performance
Aftermarket & Exports – Improving Performance Aftermarket Sales (Rs Mn) Export Sales (Rs. Mn) CAGR +19% CAGR +25% 1,988 612 1,854 571 553 558 1,516 1,415 415 1,205 382 1,004 292 874 594 126 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 * * FY17 do not include Export
Slide 14: Strategic Manufacturing Footprint
Strategic Manufacturing Footprint Ashok Leyland SML Isuzu Tata Motors GIL Presence Honda Cars Honda Motorcycles TVS Motors GIL Plants ICML Yamaha India Maruti Suzuki Parwanoo GIL Satellite Locations Suzuki Motorcycles Manesar Khandsa AMW GM Sanand Dewas Tata Motors Hindustan Motors Honda Motorcycles
Slide 15: Manufacturing Facilities – 2/3 Wheelers
… Manufacturing Facilities 2/3 Wheelers Key Features Clientele • Commenced production in 1990 Nashik • Products: Shock Absorbers & Front Forks • TC with Yamaha Motors Hydraulic System • Commenced production in 1997 Hosur • Products: Shock Absorbers & Front Forks • TC with KYB Japan & Yamaha Motors H
Slide 16: Manufacturing Facilities – Passenger Cars
… Manufacturing Facilities Passenger Cars Key Features Clientele • Commenced production in 1997 Chakan • Segment Serviced : Passenger Cars, Utility Vehicles and Railway • Products: Shock Absorbers & Struts • Commenced production in 2007 Khandsa • Products: Shock Absorbers & Struts • TC with KYB Japa
Slide 17: Manufacturing Facilities – CV & Railways
… Manufacturing Facilities CV & Railways Key Features Clientele • Commenced production in 1992 Dewas • Segment Serviced : OE, Aftermarket and Exports • Products: Shox – Commercial Vehicles 17
Slide 18: Strong In-house R&D & Global Technology Partners
Strong In-house R&D & Global Technology Partners Key Principles of R&D • Developing light DSIR Approved R&D Centres weight products at competitive costs Well equipped state- Technical Collaborations with Global Partners • Developing of-the-art products that will • Chakan • KYB Japan – Focus on Short
Slide 19: Achieving Engineering Excellence
Achieving Engineering Excellence First to Develop Designed & Adjustable Electronic- First time in India - developed Remote Hydraulic Shock Shock Absorbers Canister Shock Absorber for a leading with Floating Piston Absorber SUV vehicle in Aftermarket First Indian Company to Proven Engineering First t
Slide 20: Strategy Going Ahead
GABRIEL acrm ansysco C/ fovrecia @rsesirees casmex [EEE] Go) drower mane "mando <3
Slide 21: Strategic Business Unit Approach
Strategic Business Unit Approach… 2/3 Wheeler CV & Railways • Quality & Process • Product Technology Technology • New Product Devolvement • Capacity Enhancement Aftermarket Passenger Car • Product Development • Product Innovation • Expanding Reach • Improving Market Share To Derive benefits in Custo
Slide 22: To Drive Growth
… To Drive Growth Sales Growth • Exports Focus • In Organic Growth • Global Manufacturing Footprint Efficiency Improvement • Customer Focus Technology & Innovation • Debt Reduction • Improvement in quality • Break Even Point (BEP) • R & D Focus Reduction • Sustainable • Simplification of Parts Manuf
Slide 23: Financial Highlights
GABRIEL acrm ansysco C/ fovrecia @rsesirees casmex [EEE] Go) drower mane "mando <3
Slide 24: Historical Profit & Loss Highlights
Historical Profit & Loss Highlights Rs.Mn FY17 FY16 FY15 FY14 FY13 Revenue 15,291 14,382 14,441 12,866 12,053 Raw Material 10,844 10,282 10,434 9,266 8,644 Employee Expenses 1,279 1,150 1,077 982 911 Other Expenses 1,728 1,674 1,762 1,714 1,672 EBITDA 1,440 1,276 1,168 904 826 Margin 9.4% 9.0% 8.1%
Slide 25: Margin Expansion Continues- Yearly
Margin Expansion Continues- Yearly EBITDA Margin % PBT Before Exceptional Item Margin % 9.4% 7.4% 9.1% +30 bps 6.7% +70 bps 8.1% 5.8% 7.1% 6.7% 4.3% 3.4% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 25
Slide 26: Quarterly Performance Trend
Quarterly Performance Trend Quarterly Performance Trend EBITDA Margin % 9.9% 9.5% 9.4% 9.4% 9.2% 9.2% 8.8% 8.3% 8.2% 8.0% 8.0% 7.8% Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 PBT Margin (%) 7.6% 7.3% 7.4% 7.0% 7.1% 6.7% 6.7% 6.3% 6.4% 5.8% 5.8% 5.
Slide 27: Balance Sheet
Balance Sheet EQUITY & LIABILITIES (Rs. Mn) Mar-17 Mar-16 ASSETS (Rs. Mn) Mar-17 Mar-16 Shareholder’s Fund 4,505 3,799 Non-current assets 3,155 2,997 Share capital 144 144 Fixed assets 2,904 2,746 Reserves & Surplus 4,361 3,656 Long-term loans and advances 251 236 Non-current liabilities 335 258 Cur
Slide 28: Strong Balance Sheet
Strong Balance Sheet D:E Ratio ROIC* (%) 0.31 27.8% 27.7% 26.7% 0.23 19.9% 18.0% 0.04 0.03 0.02 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 * Invested capital excluding Cash & Bank balances, Mutual Fund investments and returns thereon 28
Slide 29: Reduction in borrowings
Reduction in borrowings (Rs.Mn) 900 3 800 Public 83 Deposits 700 3 Working capital 600 Term loan 500 Finance lease 551 468 400 Others 300 200 3 1 100 195 2 171 101 59 33 0 Mar '13 Mar '14 Mar '15 Mar '16 Mar '17 The company has stopped accepting public deposits effective November 2015 and the outsta
Slide 30: Capital expenditure trend
Capital expenditure trend Capital Expenditure (Rs. Mn) 692 518 396 388 348 FY13 FY14 FY15 FY16 FY17 30
Slide 31: Working capital improvement
Working capital improvement Net Working Capital Days 33 28 26 25 24 FY13* FY14* FY15* FY16* FY17*# *Debtors including Bills discounted with banks. # FY17 nos. do not include proposed dividend as liability in terms of amendment in Accounting standard adjusted to which net days would be 22 days 31
Slide 32: Annual Performance Trend
Annual Performance Trend Revenue EBITDA (Rs.Mn) CAGR +13% CAGR +14% 15,291 1,440 14,441 14,382 1,293 12,053 12,866 1,168 11,282 9,700 888 941 904 826 7,055 573 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 EBITDA Margin% PAT CAGR +21% 9.2% 9.0% 9.4% 816 8.2% 8.3% 8.
Slide 33: Annual Performance Trend
Annual Performance Trend Networth Debt:Equity (Rs.Mn) 4,505 1.00 3,799 0.80 3,254 2,852 2,569 0.53 2,312 1,865 1,493 0.32 0.23 0.04 0.03 0.02 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Funds Employed ROCE 4,505 25.7% 26.8% 26.5% 4,016 23.8% 3,561 3,697 3,492 3,61
Slide 34: Improving Dividend Profile
Improving Dividend Profile Dividend Per Share (Rs.) 1.3 1.2 • Continuous Dividend 1.05 since 1998 0.85 • Stable Payout Ratio 0.75 • Declared Final Dividend 0.5 0.5 of Rs. 0.85 per share, amounting to 85% of Face Value • Total Dividend of Rs. 1.30 FY11 FY12 FY13 FY14 FY15 FY16 FY17 per share of Re. 1
Slide 35: Corporate Overview
GABRIEL acrm ansysco C/ fovrecia @rsesirees casmex [EEE] Go) drower mane "mando <3
Slide 36: Evolution
Evolution 2001 - 2010 1991 - 2000 • Exports to Yamaha (Japan) Commenced 1961-1990 • Single Unit Manufacturing to • Sets up the Parwanoo facility, Multi Location segment wise manufactures shock absorbers • Incorporated Gabriel manufacturing : Passenger car for Commercial Vehicles and India in 1961 s
Slide 37: Evolution
Evolution 2015 - 2016 2013 - 2014 • Received an approval to manufacture Linke- Hofmann- 2011-2012 • With key focus on R&D, Busch (LHB) Dampers from launches a full-fledged new 2- Indian Railways for high-speed • 2011 R&D Facility at Wheeler R&D centre in Hosur Trains Hosur & Nashik • Expanded presen
Slide 38: Led by Experienced Professionals
Led by Experienced Professionals Mr. Deepak Chopra – Group CEO, Anand Group • Chartered Accountant & Company Secretary, with 37 years of experience across Industries • Associated with Anand Group since 1976 • Rich experience in Finance, Tax, Operations, Secretarial, and Project Management Mr. Manoj
Slide 39: Led by Experienced Professionals
Led by Experienced Professionals Mr. Rajendra Abhange, CTO Mr. Atul Jaggi , COO, TWBU Mr. Amitabh Srivastava, COO, AMBU Mr. Sarabjit Singh, COO, PCBU Mr. Umesh Shah , COO, CVRBU 39
Slide 40: Board of Directors
Board of Directors Mrs. Anjali Singh – Executive Chairperson, Gabriel India • Joined Anand Group in 2005 • Studied Business Management at University of Westminster, UK, and Fine Arts at Central Martin’s School of Arts and Design, UK • Also serves as Chairperson, Supervisory Board, Anand Group since
Slide 41: Board of Directors
Board of Directors Mr. Aditya Vij – Non Executive Independent Director • Over 3 decades of experience in the corporate world with a proven track record of developing and turning around businesses in various leadership positions. • Served as the Chief Executive Officer at Fortis Healthcare Limited fr
Slide 42: AWARDS
AWARDS Price Competitiveness Award – Suzuki Motorcycles Gold Quality Award – Lohia UM Motorcycles Zero PPM Quality Award – Toyota Kirloskar Global Supplier Conference at Yamaha Japan 42
Slide 43: Achievement
Achievement TAA (Technology Assistance Agreement) signed off with TORRE (Gabriel South Africa) 43
Slide 44: Golden Peacock Award
Golden Peacock Award Gabriel Parwanoo awarded with prestigious Golden Peacock Award for HR Excellence 44
Slide 45: Industry Award
Industry Award Gabriel Dewas won Third price – FICCI Quality systems Excellence award in large scale category 45
Slide 46: Awarded with Great Place to Work
Awarded with “GREAT PLACE TO WORK” Ranked among Top 100 Companies to work for 2017 in India Gabriel India Ranked #3 in Auto Component Industry 2016 Rank #70 among Top 100 Companies to work for in India Gabriel India Ranked #2 in Auto Component Industry 2015 Rank #43 among Top 50 Companies to work fo
Slide 47: Industry Accolades
Industry Accolades • “Silver Quality Award” from Bajaj Auto • “Overall Cost Reduction” Award from Suzuki Motorcycles for 2015-16 • Felicitated for Long standing partnership with Royal Enfield Motorcycles • Gabriel Dewas won the First Prize in the “Safety Category” of the Manufacturing Today Excellen
Slide 48: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Gabriel India Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L34101PN1961PLC015735 CIN : U74140MH2010PTC204285 Mr. Rajendran Arunachalam Mr. Jigar Kavaiya / Ms. Neha Shroff rajendran.arunachalam@gabriel.co.in jigar.kava