Slide 1: Q1 FY2018 Earnings Presentation
DYNAMATIC TECHNOLOGIES LIMITED Q1 FY2018 EARNINGS PRESENTATION Zp Je = i cr. . HYDRAULICS AEROSPACE & DEFENCE AUTOMOTIVE
Slide 2: Born to Fly
BORN TO FLY
Slide 3: Q1 FY2018 Highlights
• Net Revenue of Rs. 3,148 mn; down Q1 FY2018 20.1% from Rs. 3,939 mn in Q1 FY17 primarily due to the impact of GST Q1 FY2017 • EBITDA of Rs. 217 mn; compared to Rs. 22% 480 mn in Q1 FY17 22% o EBITDA margin of 6.9% 17% 61% 57% 20% • Debt/ Equity improved to 2.5x from 2.7x at the end of March 2017 A
Slide 4: Management commentary on results
Commenting on the results, said: “Q1 FY2018 was outlined with one of the most momentous events in the history of Indian economy – the implementation of the Goods and Services Tax (GST). This coupled with IND-AS application has impacted our overall financials. Orders offtake for the Hydraulics and Ae
Slide 5: Q1 FY2018 Financial Performance
Revenue 3,148 3,939 (20.1)% 3,783 (13.9)% EBITDA 217 480 (54.9)% 388 (38.2)% 6.9% 12.2% 10.3% Profit After Tax (PAT) (95) 128 nm (75) nm nm 3.3% nm Basic EPS (Rs.) (14.92) 20.22 nm (11.76) nm Total comprehensive income (40) 46 nm - - • Q1 FY2018 Revenue declined 20.1% y-o-y. Revenues from Aerospace
Slide 6: Currency impact on revenue and EBITDA
EURO vs. INR 71.02 75.57 (4.55) 73.61 (2.58) GBP vs. INR 82.47 96.10 (13.63) 87.71 (5.25) USD vs. INR 64.46 66.93 (2.48) 67.09 (2.63) EURO GBP EURO Revenue (Rs. mn) (95.3) (86.9) (3.5) (225.0) EBITDA (Rs. mn) (4.7) (4.2) (3.5) (51.6) • On a constant currency basis, Q1 FY2018 revenue, if adjusted for
Slide 7: Aerospace & Defence segment performance
UK 35% India 458 501 653 UK 247 348 250 India 65% India 102 206 200 UK 30 72 39 • Significant impact on the operations as there was uncertainty in export procedure under GST which resulted in reversal of sales due to cut off procedure • Strong order book. New enquiries and orders to further strength
Slide 8: Hydraulics segment performance
UK 31% India 446 442 483 UK 197 238 217 India 69% India 59 75 91 UK (0) 17 24 • Despite significant impact on the operations due to lower orders offtake toward the end of June, Indian operations continued strong performance and increased marginally • On a constant currency basis, revenue from UK reg
Slide 9: Automotive segment performance
India 18% India – M 183 200 (8.5)% 183 (0.1)% India – F 237 284 (16.6)% 220 7.6% India – F: Inter Co. Settlement (97) (179) (45.6)% (117) Germa ny Germany 1,478 2,109 (29.9)% 1,885 (21.6)% 82% 2.3% 4.9% 4.1% India – M (29) (21) 39.7% (33) (12.9)% (15.8)% (10.4)% (18.2)% India – F 3 15 (83.7)% 5 (50.
Slide 10: Quarterly revenue and EBITDA trend
3,939 3,828 3,783 22% 22% 25% 24% 22% 5.6% 3,520 17% 18% 20% 19% 20% (3.0)% (2.5)% 3,148 3.4% (20.1)% 61% 60% 55% 58% 57% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Automotive Hydraulics Aerospace & Defence 480 451 388 335 12.2% 11.8% 217 9.5% 10.3% 6.9% Note: Fi
Slide 11: Debt, leverage and credit rating
(Rs. million) June 30, 2017 Mar 31, 2017 Long Term 2.1x 5,099 5,092 Borrowings 1.7x Short Term 1,559 1.2x 1,798 1.1x Borrowings Total Debt 6,897 6,651 0.6x 195 Less: Cash & Cash 185 188 182 319 826 177 Equivalents Net Debt 6,579 5,825 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Net Worth 2,758 2,464 Not
Slide 12: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products for business the automotive, hydraulic, aerospace and defense industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 13: Vertically Integrated Facilities
Vertically • Advanced iron foundry in India and Germany. Also has aluminium foundry in India for Integrated captive use Facilities • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of manufacturing highly intricate castings • In-house division for design validation and op
Slide 14: Combination of Stable and High Growth Businesses
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components • Audi • Hyundai including engine, transmission, • BMW • Nissan turbocharger and chassis parts 57.2% of Q1 • Daimler • Tata Motors FY18 • Metallurgical ferrous and • Ford •
Slide 15: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors • Samena Capital and Citi Group Others Promoters 22.1% • HDFC Mutual Fund 50.2% • Alchemy and Group • SBI Mutual Fund DIIs • Goldman Sachs 12.4% • Mukul Agarwal and Group • Premier Investment Fund FIIs • Cyril Traders 15.3% •
Slide 16: Forward-looking statements disclaimer
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies’ (“Dynamatic” or the “Company”) future business developments
Slide 17: Dynamatic Technologies Limited contact details
Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India +91 80 2839 4933 / 34 / 35 +91 80 2839 5823 hanuman.sharma@dynamatics.net Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India +91 80 2839 4933 / 34 / 35 +91 80 2839 5