Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Q2 FY2024 Earnings Presentation
37 slides from Samvardhana Motherson International's earnings presentation, Nov 9, 2023
Slide 1: Exchange filing cover letter for Q2 results
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 November 9, 2023 National Stock Exchan
Slide 2: Cover letter continuation and signature
-2- The Board Meeting of the Company commenced at 1130 Hours (IST) and concluded at 1355 Hours (IST). The results will be uploaded on Company’s website at www.motherson.com in compliance with Regulation 46(2)(l)(ii) and will be published in the newspapers in terms of Regulation 47(1)(b) of SEBI (Lis
Slide 3: Q2 FY 2023-24 Results Presentation
Samvardhana Motherson International Limited. (Formerly Motherson Sumi Systems Ltd.) Q2 FY 2023-24 Results Presentation 11
Slide 4: Key Highlights
Key Highlights Consistent performance in challenging environment, Well-prepared to adapt to the changing business landscape. Performance Snapshot. Performance Overview. Automotive booked Transformative Realignment of Consolidated Growth % (Rs in crores) Q2 FY 24 YoY business2 of USD Acquisitions aut
Slide 5: Amidst stabilising indicators, global uncertainties still loom
Amidst stabilising indicators, global uncertainties still loom.
Slide 6: Manpower inflation and interest rates continue to pose challenges
Manpower inflation and interest rates continue to pose challenges, Energy and commodities stable at elevated levels, supply chain constraints eased out… EU, USA & India Inflation1 Wage pressure across the world EU, USA & India Interest rates1 (in %) (in %) 1 2.0 7 .0 % 6.50% 1 0.0 9.3 5.4% 6 .0 % 5.
Slide 7: Global automotive production stable Q-o-Q, India and China driving growth
Global automotive production stable Q-o-Q, India and China are driving growth. Data represents automotive production volumes Legend YoY QoQ Global. Europe. North America. Light Vehicles Commercial Vehicles Light Vehicles Commercial Vehicles 19% Light Vehicles Commercial Vehicles 20% 9% 15% 1 2% 1 0%
Slide 8: Taking appropriate measures to adapt to external factors
Taking appropriate measures to adapt to the ever-changing and unpredictable external factors. • Discussions with customers are a constant Higher wages in feature in the short to medium term. multiple Geo-Political geographies conflicts • New capacities in emerging markets, to support impending high
Slide 9: Strong Performance, while Breathing With the Market
Strong- Performance, while “Breathing With the Market”.
Slide 10: Strong revenue growth, aided by organic and inorganic growth
Strong revenue growth, aided by organic and inorganic growth. Consolidated Financial Performance Q2FY24 One time INR in Crores provision for footprint Revenue EBITDA Normalised PAT rationalization Growth 28% Growth 34% Growth 39% 8.5% 500 451 7.9% 0. 09 23,474 9. 0% 2,400 450 0. 08 8. 0% 2,200 400 2
Slide 11: Leverage under control amidst large M&A payouts
Leverage under control amidst large M&A payouts; full value of M&As to be unlocked in coming times
Slide 12: Leverage at a comfortable level of 1.9x
Leverage at a comfortable level of 1.9x; much within the stated financial policy of 2.5x Net Debt to EBITDA. Net Debt + Lease liabilities1,2 (Rs in Crores) Increase in debt on account of payout impact for acquisition closures (SAS, Ichikoh, Saddles and Rollon with combined net revenues of approx. Rs
Slide 13: Full growth potential of M&As to be unlocked
Full growth potential of M&As to be unlocked in coming times. since Sep 2022 Combined Proforma Revenue Additional New into Motherson family 15 acquisitions. USD ~2.6 bn. (Net2) 75+ facilities3. 17,000+ employees. USD ~6.4 bn. (Gross1,2) Consolidation with SAMIL (FY24) Acquisitions. New Capability/ R
Slide 14: Growth-oriented Capex
Growth- oriented Capex in alignment with new launches and future plans of our customers
Slide 15: Capex and revised guidance
Focusing on capturing growth opportunities… Initial Capex Increase on New expected account of Capex Capex guidance of Includes growth investments into Guidance of Rs. 3000 crores. emerging markets (Rs in Crores) capex to support Rs. 4,500 crores. (+10%) and capex for 2,000 customer needs 65% 70% (+/
Slide 16: Growth in Emerging markets
…in Emerging markets1. Revenue3 Contribution from Emerging markets (Rs in crores) Growth 30,041 23,861 26% 250+ existing Total 11+ >55% Majority of facilities2 and >75% Upcoming facilities at Share of growth capex employees across different stages of revenues3 from Going into emerging emerging marke
Slide 17: Initiatives to normalise working capital
Initiatives in progress to normalise working capital, improvements visible. Inventory Days1 However, over (on sales) Rs. 1,500 crores 60 57 still blocked in carrying 55 extra inventory 50 44 45 40 Post Covid Avg 37 36 35 35 35 35 35 33 33 33 30 31 29 28 29 29 28 28 30 26 26 26 25 Pre Covid Avg Q1 F
Slide 18: De-risking via Diversification
De-risking via Diversification, limiting the impact of regional volatilities.
Slide 19: Risk mitigation via diversification 3CX
Continued Focus on risk mitigation via diversification 3CX10 (H1FY24). Component wise. Customer wise. Country wise. (top 15 customers) Merced es Benz 9% Wiring Harness 26% India** 21% Aud i 9% Vision Systems 18% Volkswagen 8% USA 18% Suzu ki/ Maruti… 6% Bumpers* Germany 16% 13% BMW 5% stellantis 4%
Slide 20: Building on customers' trust
Building on customers’ trust. Healthy booked business for Automotive businesses
Slide 21: SAMIL's Automotive Booked Business
SAMIL’s Automotive ‘Booked Business’. in billion USD. Automotive Automotive business of SAMIL. businesses of SMRBV. 22% Vision Systems from EV. Wiring Harness Modules & Polymer 70.00 Products (India and Overseas) (other than SMP) 28.7 77.3 60.00 billion USD. billion USD. 50.00 Modules & 40.00 Polyme
Slide 22: Divisional Financial Performance
Divisional Financial Performance.
Slide 23: Business Divisions
Business Divisions. New Division 01. 02. 03. 04. 05. Wiring Vision Modules & Polymer Integrated Emerging harness Systems Products Assemblies Businesses Elastomers Lighting & Precision Technology & Aerospace Logistics Health Services Electronics Metals & Industrial Solutions & Modules Solutions Medic
Slide 24: Key Divisional Highlights
Key Divisional Highlights. Wiring Modules and Vision Emerging Harness. Polymer Products. Systems. Businesses. ü All-time high revenues for ü Growth in revenue driven by ü Revenue growth driven by ü Transformative acquisitions the division for the quarter pickup in production volumes pickup in produc
Slide 25: Division Wise Financial Performance Q2FY24 vs Q2FY23
Business Division Wise Financial Performance : Q2FY24 vs Q2FY23. (all figures are Rs. in Crores) Wiring Modules and Vision Integrated Emerging Harness. Polymer Products*. Systems. Assemblies. Businesses. Revenues Revenues Revenues Revenues Revenues 22% 18% 11,477 19% 15% 7,763 9,758 6,383 4,689 2,02
Slide 26: Division Wise Financial Performance H1FY24 vs H1FY23
Business Division Wise Financial Performance : H1FY24 vs H1FY23. (all figures are Rs. in Crores) Wiring Modules and Vision Integrated Emerging Harness. Polymer Products*. Systems. Assemblies. Businesses. Revenues Revenues Revenues Revenues Revenues 23% 22% 23,455 25% 14% 15,396 19,185 12,499 9,304 7
Slide 27: Summary of divisional financial performance
Summary of divisional financial performance. Financials Amount in INR crores Q2FY23 Q2FY24 Business Division3 Revenue1 EBITDA EBITDA% Revenue1 EBITDA EBITDA% Wiring Harness 6,383 522 8.2% 7,763 826 10.6% Modules & Polymer Products* 9,758 652 6.7% 11,477 815 7.1% Vision Systems 3,940 359 9.1% 4,689 4
Slide 28: Consolidated Debt Status, Reference Rates, and Notes
Consolidated Debt Status, Reference Rates, and Notes. A. Net Debt. Copper Rates. Average Q2 FY23 Q1 FY24 Q2 FY24 Rs. In Mar-22 Jun-22 Sep-22 Dec- 22 Mar-23 Jun-23 Sep-23 Crores LME Copper (USD / MT ) 7,742 8,478 8,356 Gross 12,761 12,356 12,671 12,968 12,166 12,546 19,228 Copper (INR / KG) 672 760 7
Slide 29: Thank you / Safe harbor
Thank you. Safe harbor 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 ba
Slide 30: Annexure
motherson al Annexure.
Slide 31: SAMIL Consolidated Q2FY24 vs Q2FY23
SAMIL Consolidated Q2FY24 vs Q2FY23. (Rs in Crores) 23,474 EBITDA Revenues 8.5% Growth 28% Growth 34% 8.2% 2,001 10. 0% 18,302 2,000 1,494 8. 0% 46 6. 0% 1,000 4. 0% 1,448 2. 0% - 0. 0% 2 1 Q2 FY23 Q2 FY24 1 Q2 FY23 Q2 FY24 One-Offs PBT PAT One time (before exceptional items and share of associates)
Slide 32: SAMIL Standalone Q2FY24 vs Q2FY23
SAMIL Standalone Q2FY24 vs Q2FY23. (Rs in Crores) Revenues EBITDA. Growth 22% Growth 36% 14.2% 2,221 1,832 12.7% 330 315 232 20. 0% 280 230 15. 0% 180 10. 0% 130 80 5. 0% 30 (20) 0. 0% Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 PBT PAT (before exceptional items) Growth 17% Growth 19% 273 303 250 214 99 99 94 9
Slide 33: SAMIL Consolidated H1FY24 vs H1FY23
SAMIL Consolidated H1FY24 vs H1FY23. (Rs in Crores) Revenues 45,936 EBITDA 8.6% Growth 28 % Growth 52% 4,000 7.4% 35,957 10. 0% 3,000 2,645 8. 0% 46 3,941 6. 0% 2,000 2,599 4. 0% 1,000 2. 0% - 0. 0% H1 FY232 H1 FY241 H1 FY23 H1 FY241 PBT PAT 1,052 One time (before exceptional items and share of asso
Slide 34: SAMIL Standalone H1FY24 vs H1FY23
SAMIL Standalone H1FY24 vs H1FY23. (Rs in Crores) Revenues EBITDA. Growth 22% Growth 48% 14.1% 4,239 11.6% 3,468 700 600 596 15. 0% 401 500 13. 0% 400 11. 0% 300 9. 0% 200 7. 0% 100 - 5. 0% H1 FY23 H1 FY24 H1 FY23 H1 FY24 PBT PAT (before exceptional items) Growth 28% Growth 26% 529 430 419 334 140 1
Slide 35: Emerging Businesses: Exponential growth potential
Emerging Businesses Exponential growth potential with large addressable market. Revenue by Segment Q2 FY24 Elastomers, 9.7% Lighting & Electronics, 42.8% Precision 04 Elastomers 05 Lighting & 06 Precision 07 Technology & Electronics Metals & Modules Industrial Solutions Metals and 2,022 Modules, 22.
Slide 36: Bridge to Gross revenue
Bridge to Gross revenue. Revenues (Rs in Crores) Business Division FY23 Q1FY24 Q2FY24 Gross revenue 94,491 26,909 34,518 Less: Adjustment under INDAS 115 4,740 1,569 7,741 (Principal vs Agent consideration) Reported including JVs/ 89,751 25,340 26,777 Economic Value Less: JVs consolidated as per equ
Slide 37: Thank you / Safe harbor
Thank you. Safe harbor 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 ba
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