Alicon Castalloy Limited · NSE:ALICON
Alicon Castalloy — Investor Presentation (December 2018)
57 slides from Alicon Castalloy's investor presentation, Dec 14, 2018
Slide 1: Intimation of Analyst/Investor Meeting
,,..alicon Casti ng the Future ~cember 14, 2018 To To The Manager The Manager The~ Department of Corporate Serv~s The Listing Department BSE limited National Stock EKchange of India limited Floor 25, P. J. Towers, Exchange Plaza, Bandra Kurla Complex. Dalai Street, Mumbai - 400 001 Bandra {East), Mu
Slide 2: Alicon Castalloy Ltd Corporate Presentation
Alicon Castalloy Ltd Corporate Presentation December 2018
Slide 3: Forward-looking statements disclaimer
Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "conte
Slide 4: Agenda
Industry Financial Key Processes Characteristics Highlights & Products About Growth Corporate Alicon Strategy Profile 3
Slide 5: About Alicon Castalloy
About Alicon Castalloy
Slide 6: End-to-end solutions across aluminum casting needs
Offers end-to-end solutions spanning the entire spectrum of aluminum casting needs across multiple user industries Offers - Design, Engineering, Casting, Machining and Assembly, Painting and Surface Treatment of Aluminum Components Pioneer in India for processes of Low Pressure Die Casting (LPDC) an
Slide 7: A blend of European engineering skills, Japanese quality and Indian ingenuity
Enkei Corporation Alicon Castalloy Leading Japanese Largest Foundry in India – motor cycle and offering frugal engineering passenger car solutions wheel A blend of manufacturer European 70+ years of 50+ years of track record 230+ engineering skills, experience Years of Cumulative Japanese quality Si
Slide 8: Company history and milestones
1969 1992 1995 1996 2006 2009 2010 2011 2017 2018 Silicon Meadows Engineering TS16949, ISO Pegasus Services 9001, ISO 14001 & Castalloy and established to OHSAS 18001 Atlas cater to Enkei certified Automotives engineering Corporation New plant set up established in and design Japan join hands Silico
Slide 9: Catering to key sectors of the Indian economy
Prototype Design Tool Design & Painting & Manufacturing Simulation Machining & Tool Sub-Assembly Manufacturing VA/VE Casting Fixture Design & Suggestions Manufacturing Manufacturing Catering to key sectors of the Indian economy Automobile Infrastructure Aerospace Medical Energy Agriculture 8
Slide 10: Strategically diversifying presence in various segments
Strategically diversifying presence in various segments Automotive segment Non-Automotive segment Traditional E-mobility Agriculture Infrastructure Two Three Two Wheelers Wheelers Wheelers Energy Locomotive Passenger Multi Utility Passenger Cars Vehicles Cars Medium & Multi Medium & Medical & Aero &
Slide 11: Strategic locations enable better speed-to-market
Strategic locations enable better speed-to-market and increased cost optimization 4 modern plants (1 international) Slovakia Austria High-end machines Binola Pune Advanced Technology Centre Globally competent Tool Rooms (20 tools/ a month Full-edged Machine Shop (including assembly facility) Chinchw
Slide 12: Diversity across markets and industries provides a natural hedge
Diversity across markets and industries provides a natural hedge TWO WHEELER OEM FOUR WHEELER OEM TIER 1 & NON AUTO Not reliant on a single ‘anchor’ customer None of the customers contribute >15% of turnover MANY MORE…. 11
Slide 13: Key performance numbers
` ` 17% 20% 20% 4 1,014 Revenue CAGR EBITDA CAGR PAT CAGR Manufacturing INR crore of (5 yr) (5 yr) (5 yr) Units Revenue in FY18 76 60 Serving customers in 1,037 customers with.. 15 685 No. of product No. of permanent innovations during FY18 countries employees Live Parts 12
Slide 14: Industry Characteristics
Industry Characteristics
Slide 15: Foundry industry characteristics
Production of castings in Million (M.T) Fragmented market CAGR: 5% • The foundry industry is largely dominated by unorganized sector and small scale players 11 9 Highly labor- intensive • Generates employment for ~2 million people 2013 2017 • Potential to generate additional employment of 2 Million
Slide 16: India GDP growth outlook
India – GDP Growth Outlook 7.8% 7.9% • Initiatives like ‘Make in India’, ‘Housing for All’, ‘Smart Cities Mission’, Automotive 7.1% 7.4% Mission Plan 2026’, and NEMMP 2020 - a huge boost to the automobile, defense, and 6.7% infrastructure sectors • New manufacturing policy envisages the increase in
Slide 17: Growth Strategy
Growth Strategy
Slide 18: Vision G5 2021-22
In FY16, Alicon unveiled its vision G5 2021-22, which spells out the Company’s ambition to be among the Top 5 global foundries by FY2021-22 Traditional E-mobility Non-auto Alicon’s current presence as on FY18 Revenue 2,000 Cr. + Alicon’s targeted presence in FY22 Revenue Auto 1,000 Cr.+ Domestic Glo
Slide 19: Strategic pillars of growth
Solution Provider At The Forefront Of Integrated Emerging Offerings Opportunities Strengthening The Manufacturing Export Platform Excellence Focus on Underpenetrated Segments 18
Slide 20: Solution provider
Focus on At The Forefront Of Solution Integrated Manufacturing underpenetrated Strengthening The Emerging Provider Offerings Excellence segments Export Platform Opportunities • Alicon has moved up the value chain from product vendor to solution provider • Deeper engagement with customers at the tech
Slide 21: Integrated offerings
Focus on At The Forefront Of Solution Integrated Manufacturing underpenetrated Strengthening The Emerging Provider Offerings Excellence segments Export Platform Opportunities • Have deepened design capabilities and enhanced simulation and software imprint resulting in better outcomes • Enhanced prot
Slide 22: Manufacturing excellence
Focus on At The Forefront Of Solution Integrated Manufacturing underpenetrated Strengthening The Emerging Provider Offerings Excellence segments Export Platform Opportunities • Four best-in-class manufacturing facilities – located in Shikrapur, Chinchwad and Binola in India, and Slovakia (Europe) –
Slide 23: Focus on underpenetrated segments
Focus on At The Forefront Of Solution Integrated Manufacturing underpenetrated Strengthening The Emerging Provider Offerings Excellence segments Export Platform Opportunities • Targeting high potential growth industries across the non-auto segment – Alicon operates one of the few foundries in India
Slide 24: Strengthening the export platform
Focus on At The Forefront Of Solution Integrated Manufacturing underpenetrated Strengthening The Emerging Provider Offerings Excellence segments Export Platform Opportunities • Tapping potential across Export Markets & deepening engagement with existing base of global customers to scale export volum
Slide 25: Emerging opportunities in e-mobility
Focus on At The Forefront Of Solution Integrated Manufacturing underpenetrated Strengthening The Emerging Provider Offerings Excellence segments Export Platform Opportunities • The emerging E-mobility sector provides huge propensity for growth • Proactively involved with the domestic and global OEM’
Slide 26: Total customers increased from 38 in FY10 to 87 in FY18
Total customers significantly increased from 38 in FY10 to 87 in FY18 2W & 3W 4W Non Auto Total Turnover Customers Customers Customers (Rs in crore) 4 188 0 15 24 1 8 3 826 7 10 15 18 21 9 202 FY10 FY18 FY10 FY18 FY10 FY18 FY10 FY18 Domestic Export Domestic Export Domestic Export Domestic Export 25
Slide 27: Number of parts developed in last 3 years
Number of Parts Developed in Last Targeted Proportion of Sale of 3 Years Newly Developed Parts Domestic Export 4% 4 Targeted Sales 2 15% from Parts Under 2 18% Development 2 Parts Developened in 1 96% 86 88 1 the Year FY 18 61 10 66% Existing Parts 6 7 FY16 FY17 FY18 FY16 FY17 FY18 FY18 FY22 Auto No
Slide 28: Parts launched for auto and other sectors
HMSI Renault MSIL Honeywell HCIL Ather Toyota KTM Magneti K0LA Pipe Nissan Cylinder Turbo Engine Swing Arm Intake Cylinder Marelli Cylinder head Charger Parts Manifold head Base plate head Augmenting solutions for the auto segment through Launched products in sectors like Defense, Healthcare increas
Slide 29: Order book and electric vehicle products
Samsung JLR Bosch Honeywell Renault Magneti Samsung Rotax Audi Battery Knuckles Housing Turbo Nissan Marelli Housing Cylinder Knuckles Housing charger Cylinder Base Plate head heads Developing path-breaking products and solutions for Strong growth in order book and visibility electric vehicles and n
Slide 30: Financial Highlights
Financial Highlights
Slide 31: Net Sales and Exports
Net Sales (Rs. Crore) Exports – incl. overseas business (Rs. Crore) CAGR: 17% 1,014 CAGR: 13% 188 749 772 714 533 115 113 101 99 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 30
Slide 32: EBITDA, PAT and margins
EBITDA* (Rs. Crore) PAT (Rs. Crore) CAGR: 20% CAGR: 20% 39 118 89 22 25 77 84 19 20 57 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBITDA Margins PAT Margins 11.7% 3.6% 3.8% 10.7% 11.5% 3.4% 10.8% 2.8% 3.0% 10.2% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 * Including other income 31
Slide 33: ROE, ROCE, BVPS and EPS
ROCE ROE 18.1% 15.4% 15.4% 14.3% 15.3% 18.0% 18.1% 17.8% 17.3% 16.1% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 BVPS (Rs.) EPS (Rs.) 189 142 29.5 117 117 21.4 96 17.4 18.0 19.6 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 32
Slide 34: Networth, Gross Debt and Working Capital
Networth (Rs. Crore) Gross Debt (Rs. Crore) 252 242 226 161 157 172 123 143 106 108 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Working Capital (Rs. Crore) Net debt to equity (x) 188 128 1.2 1.1 1.1 77 0.9 0.9 72 56 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 33
Slide 35: Q2 FY19 performance
• Revenue from Operations Revenue from Operations EBITDA stood at Rs. 306 crore, higher by 17% 305.7 38.0 28.4 • Domestic Revenues higher by 261.8 16% YoY • Export* segment reported strong growth of 22% YoY Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 • Gross profit margins improve by EBITDA % 10.7% 12.4% 237 bp
Slide 36: H1 FY19 performance
• Revenue from Operations Revenue from Operations EBITDA higher by 31% to Rs. 602 crore • Domestic Revenues stood at 73.3 602.4 Rs. 495 crore, up by 30% YoY 459.1 51.6 • Export* segment up by 38% YoY at Rs. 107 crore • Gross profit margins steady at H1 FY18 H1 FY19 H1 FY18 H1 FY19 49% EBITDA % 11.1%
Slide 37: Auto/non-auto and domestic/export split
Q2 FY19 H1 FY19 Non-auto , Non-auto , 11% 11% Auto, 89% Auto, 89% Exports, Exports, 18% 18% Domestic , Domestic , *Exports (incl. overseas 82% 82% business) 36
Slide 38: Profit and loss statement
Particulars (Rs. crore) Q2FY19 Q2FY18 Y-o-Y Shift H1FY19 H1FY18 Y-o-Y Shift Revenue from Operations 305.7 261.8 17% 602.4 459.1 31% Other Income 1.2 3.6 -68% 4.0 6.1 -35% Total Income 306.8 265.5 16% 606.3 465.2 30% Total Expenditure 268.8 237.1 13% 533.0 413.6 29% Raw Material expenses 156.8 140.5
Slide 39: Balance sheet
As on Sept As on March As on Sept As on March Liabilities (Rs. Crore) Assets (Rs. Crore) 30, 2018 31, 2018 30, 2018 31, 2018 a) Shareholders’ Funds 283.6 252.4 a) Non-current Assets 353.2 335.3 b) Non-current Liabilities (NCL) 88.4 96.9 a) Current Assets 489.3 444.5 - Long-term Borrowings 57.5 68.6
Slide 40: Corporate Profile
Corporate Profile
Slide 41: Our Mission and Values
To become the globally preferred supplier for Light Alloy Casting Solutions Our Mission Our Values North Star philosophy - Alicon endeavors to Grow the employees, Quality, Integrity and promote Indian self-reliance in the present domains associates and suppliers Respect Ensure total customer We ar
Slide 42: Robust corporate governance
Robust corporate governance – 50% of the Board comprised of Independent Directors Promoter Directors Non Executive Directors Independent Directors Shailendrajit Rai Junichi Suzuki A.D. Harolikar Managing Director Director Independent Director Mrs. Pamela Rai Vinay Panjabi Director Independent Direct
Slide 43: Strong and Able Management Team
Strong and Able Management Team Shailendrajit Rai Rajeev Sikand Vimal Gupta Managing Director Group CEO Group CFO Ravinder Mehra Omprakash Agnihotri Shekhar Dravid Group COO Chief Business Counselling Officer VP – Business Development Andreas Heim Managing Director - Illichmann 42
Slide 44: Social initiatives through Bansuri Foundation
Since 2010, Alicon has supported and engaged in various social initiatives through its implementing partner, Bansuri Foundation Rural Development Initiatives Education Initiatives • 4th year of engagement with People’s Empowering • 3rd year of supporting iTeach Schools Movement (PEM) - focusings on
Slide 45: Green initiatives
Alicon practices several green initiatives which includes maintaining green areas with treated effluent water and enhancing green cover around our premises. 44
Slide 46: Awards and recognition
• Felicitated by Honda Cars India Limited for ‘Most Impressive Circle’ of 7th NH Circle India Convention • Conferred with an award for Quality Management 2017-18 by Honda Motorcycles & Scooter India Pvt. Ltd. • Bestowed with the Sanjeevani Award from Eicher Engines (A Unit of Tafe Motors & Tractors
Slide 47: Key Market Statistics
As on Key Market Statistics Oct 31, 2018 Retail & BSE/NSE Ticker 531147 / ALICON Others, 19.3% Aluminium / Steel Industry Products CB, 1.0% CMP (Rs.) 599.95 Floating Promoters , stock, 34.9% Market Cap (Rs. Crore) 801.9 65.1% Number of outstanding shares (Crore) 1.34 Face Value 5.00 Enkei 52-week Hi
Slide 48: Key Processes & Products
Key Processes & Products
Slide 49: Low pressure die casting Pie system
Strong focus towards streamlining processes and systems to deliver quality solutions, making Alicon a partner of choice for customers worldwide Industry leader in unique Pie system for low pressure die casting • Advanced technology with latest feature for temperature control, pressure control and me
Slide 50: Seamless manufacturing process and gravity die casting
Seamless manufacturing CORE MAKING METAL MELTING CASTING KNOCKING process through one piece flow enables early detection of even slight defects, leading to reduced rejection rate HEAT LEAK TESTING FETTLING BAND SAW Gravity Die Casting - a permanent mould TREATMENT casting Process • Better surface fi
Slide 51: Cylinder heads constitute about 54% of products
Cylinder Heads constitute about 54% of the products manufactured at Alicon 4W Four Cylinder; Two Cylinder; Single Cylinder; PETROL; GDC DIESEL; LPDC DIESEL; LPDC Manufactured 7.75 million Single Cylinder; cylinder heads, 2W PETROL; LPDC in the past 4 decades Trucks & Non-Auto Truck Non-Auto Non-Auto
Slide 52: Intake manifold and intercooler components
Damper Flap Connector Air Intake Intake Manifold Passage B Joint Intercooler Inlet Air Intake Passage A Air Flow Joint Comp Transmission Casting Lh Joint Intercooler Outlet & Rh 51
Slide 53: Alicon share in Indian two wheeler segment
Alicon Business share in the Indian Two wheeler segment is about 36% Bridge Fork Top Every 3rd Carrier Foot Rest Cylinder Head Head Lamp in the 2-wheeler Cover segment on Indian roads is an Alicon Wheel Hub product Front Wheel Hub Cylinder Swing Arm Rear Wheel Head Cover Hub 52
Slide 54: Truck and agriculture components
Trucks Connection Water Inlet Oil Sump Water Distribution Rail Flywheeel Thermostat Cover Valve - Rocker Arm Housing Cover Cover AGRICULTURE Inspection Pipe Bearing Housing Valve Cover Clutch Cover Cover Front 53
Slide 55: Railway, Energy, Aero & Marine
Railway Energy Aero & Marine 54
Slide 56: Pulley for aerial trams and ropeways
PULLEY FOR AERIAL TRAMS & ROPEWAYS 55
Slide 57: Thank You
Thank You For further information, please contact: Tarunkumar Vyas Alicon Castalloy Ltd Tel: +91 74200 73369 E-mail: tarun.vyas@alicongroup.co.in Mayank Vaswani / Shikha Kshirsagar CDR India Tel: +91 22 6645 1230/ 6645 1243 Email: mayank@cdr-india.com shikha@cdr-india.com For more information, visit
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