Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — FY2024 Earnings Presentation
36 slides from Samvardhana Motherson International's earnings presentation, May 29, 2024
Slide 1: Cover letter to BSE and NSE on audited 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 May 29, 2024 BSE Limited National Stoc
Slide 2: Cover letter signature page
The Board Meeting of the Company commenced at 1020 Hours (IST) and concluded at 1425 Hours (IST). The above is for your information and records. Thanking you, Yours truly, For Samvardhana Motherson International Limited (formerly Motherson Sumi Systems Limited) ALOK Digitally signed by ALOK GOEL GOE
Slide 3: Results Presentation for FY 2023-24
Proud to be part of our customers’ success Samvardhana Motherson International Limited. (Formerly Motherson Sumi Systems Ltd.) Results Presentation for FY 2023-24
Slide 4: SAMIL is a strong platform delivering all-round growth
Key Highlights 01/02 SAMIL is a strong platform delivering all- round growth... Performance Overview. Consolidated FY 24 Growth % vs FY23 (Rs in crores) Revenue1 98,692 25% EBITDA 9,325 46% PAT (Concern Share) 2,716 82% Industry Overview. The global automotive production volume growth remained posit
Slide 5: ...with strong financial discipline, leading to long-term value creation
Key Highlights 02/02 ...with strong financial discipline, leading to long-term value creation Performance Highlights. • Delivered Consolidated ROCE1 of 17% for FY24, compared to 11% in FY23; continued focus on further improvements. • Strong customer relationships reflected in USD 83.9 Bn automotive
Slide 6: FY 2024 saw improvements in business environment
FY 2024 saw improvements in business environment. Improved to being stable, albeit at a higher level - challenges remain in certain pockets. Robust demand augmented by automotive megatrends 44
Slide 7: Inflation, energy and interest rates stable at elevated levels
Inflation, energy and interest rates stable at elevated levels, wage related challenges remain, commodities showing upward trend. EU, USA & India Energy prices EU, USA & India Inflation1 For Germany Interest rates1 (in %) in Euro /MWh2 400 (in %) 145 1 2.0 350 125 7 .0 % 6.4% 6.5% 1 0.0 300 8.0 8.0
Slide 8: Global automotive production grew across all key geographies
Global automotive production on a full year grew across all key geographies. Global production volumes moving Though Europe, North America still ~10-15% below pre-covid levels; towards pre-covid levels, indicating steady growth.. while India and China already above pre-covid levels. Data represents
Slide 9: Automotive mega trends for increase in content
Automotive mega trends for increase in content clearly playing out across geographies albeit at varied pace. EV as % of total production volume *Hybrid as % of total production volume SUVs as % of total production volume Europe North America Europe North America 15.7% 43.0% 44.7% 29.5% 39.8% 51.1% 5
Slide 10: SAMIL – Strong and diversified platform delivering robust performance
SAMIL – Strong and diversified Platform delivering robust performance. Positive contribution by organic and inorganic businesses Continued customer trust resulting in long-term visibility on revenues. Full impact of M&As to further strengthen 88 diversification
Slide 11: Strong growth in revenues with improved profitability
Strong growth in Revenues with improved profitability; All engines firing (organic and inorganic businesses). (all figures are Rs. in Crores) Consolidated Financial Performance 12MFY24 Revenue EBITDA PAT (Concern Share) + 25% YoY + 46% YoY + 82% YoY 150,0 00 148,0 00 146,0 00 144,0 00 142,0 00 140,0
Slide 12: SAMIL's Automotive Booked Business
SAMIL’s Automotive ‘Booked Business’. 23% SAMIL Automotive Businesses1,2,3 from EV. 90.00 83.9 Wiring Harness Modules & Vision Integrated billion USD. (India and Overseas) Polymer Products Systems Assemblies 85.00 (Excluding Yachiyo) 6.6 billion USD. 80.00 77.3 75.00 billion USD. 70.00 Lighting & Pr
Slide 13: Unique diversification strategy, competitive advantage and cushion against regional volatilities
Unique diversification strategy, Competitive advantage and cushion against regional volatilities. Some major regional risks which impacted businesses in FY24… ….mitigated by gains in other regions and vehicle mix Red sea crisis creating logistical challenges Strong pickup in Faster pace of Light Veh
Slide 14: Continued focus on risk mitigation via diversification
Continued Focus on risk mitigation via diversification 3CX10 (FY24). Component wise. Customer wise. Country wise. (top 20 customers) Merced es Benz 11% India Wiring Harness 25% 20% Aud i 9% Vision Systems 17% Volkswagen 9% USA 18% Maru ti Suzu ki 6% Bumpers* Germany 17% 13% BMW 5% Engineering* Porsc
Slide 15: Prudent financial policies geared towards sustainable growth
Prudent Financial policies geared towards sustainable growth. Reduction in Debt and improvement in leverage and working capital Continue to invest in growth of organic business, especially in emerging markets. 13 13
Slide 16: Reduction in leverage to 1.4x from 1.7x
Reduction in leverage to 1.4x from 1.7x and reduction in Gross Debt of ~1,800 crores vs Dec-23. Gross and Net Debt1 with Cash and Bank Balance (Rs in Crores) 40,00 0 2.8 35,00 0 2.1 2.3 2.0 1.9 1.8 Net debt to 30,00 0 1.7 1.8 EBITDA below 1.5x 25,00 0 1.4 1.4 1.4 despite large M&A 19,228 19,186 20,0
Slide 17: Visible improvements in inventory management
Visible improvements in Inventory management; Continues to be a focus area for further improvements. 60 Inventory Days1 57 (on sales) 55 Improvement on YoY and 50 QoQ Reaching closer 44 45 to the pre-covid level 40 37 36 35 35 35 35 33 33 33 35 Post covid level 32 31 31 30 29 Pre covid level 28 29 2
Slide 18: Creating a strong platform for future growth, especially in emerging markets
Creating a strong platform for future growth, especially in emerging markets. A large part of growth capex in FY 2024 was spent in emerging Annual Capex economies across auto and non-auto businesses and will Capex spend of continue to be focus area in FY 2025 (Rs in Crores) ~ Rs. 4,000 crores, i.e.;
Slide 19: Continued focus on ROCE
Continued focus on ROCE. Visible improvement on account of focused actions 17 17
Slide 20: Delivered meaningful improvements in ROCE
Delivered meaningful improvements in ROCE. 18% Continued focus on improving ROCE … 17% 19 Larger size and Successful 17% scale leading to 17 15% turnaround of better operating underperforming 15 11% units leverage and operating 13% 13 11% efficiencies 11 9 6% 7% 9% 7% 7 5 5% FY21 FY22 FY23 FY24 Succ
Slide 21: Strong performance across all business divisions
Strong performance across all business divisions. 19 19
Slide 22: Business Divisions
Business Divisions. 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 Medical 20 20
Slide 23: Divisional Overview FY 2023-24
Divisional Overview. FY 2023-24 01.Wiring 02.Modules and 03.Vision Harness Polymer Products Systems 21 26 18 countries countries countries 27% 43% 17% 107 129 39 facilities facilities facilities 04.Integrated 05.Emerging Assemblies Businesses 12 18 countries countries 6% 7% 26 99 facilities faciliti
Slide 24: Business Division Wise Financial Performance: 12MFY24 vs 12MFY23
Business Division Wise Financial Performance1 : 12MFY24 vs 12MFY23. (all figures are Rs. in Crores) Wiring Modules and Vision Integrated Emerging Harness. Polymer Products. Systems. Assemblies1. Businesses. Revenues Revenues Revenues Revenues Revenues + 19% +18% 49,912 + 16% + 18% 31,514 42,262 26,5
Slide 25: Key Divisional Highlights
Key Divisional Highlights. Wiring Modules and Vision Integrated Emerging Harness. Polymers. Systems. Assemblies. Businesses. ü Revenue growth supported by ü Revenue growth led by ü Revenue growth led by ü Results include 8 months of SAS ü Successfully closed largest non- strong demand across acquisi
Slide 26: Financial Performance: Business Divisions under Emerging Businesses
Financial Performance : Business Divisions under Emerging businesses. (all figures are Rs. in Crores) Revenue by Segment FY24 Emerging Business FY 2023 FY 2024 Division (FY24) Revenue1,2 EBITDA Revenue1,2 EBITDA Services, 8.5% Elastomers, Lighting & Automotive Electronics, 8.6% 41.3% • Lighting and
Slide 27: Summary of divisional financial performance
Summary of divisional financial performance. Financials (all figures are Rs. in Crores) FY23 FY24 Business Division Revenue1 EBITDA EBITDA% Revenue1 EBITDA EBITDA% Wiring Harness 26,557 2,279 8.6% 31,514 3,362 10.7% Modules & Polymer Products 42,262 2,724 6.4% 49,912 4,305 8.6% Vision Systems 16,569
Slide 28: Bridge Gross to Reported revenue
Bridge Gross to Reported revenue. (all figures are Rs. in Crores) Revenues Q1FY24 Q2FY24 Q3FY24 Q4FY24 12MFY24 12M FY23 Gross revenue 26,909 34,611 40,698 41,550 143,767 94,570 Less: 1,569 7,741 11,510 10,959 31,779 4,740 Throughput revenue1 Economic Revenues 25,340 26,870 29,188 30,590 111,988 89,8
Slide 29: Where are we in our journey towards Vision 2025
Where are we in our journey towards Vision 2025. (all figures are Rs. in Crores) Gross Revenues Bridge to Gross Revenue (FY24) Proforma FY24 USD 24 + 14,000 172,267 14,500 Billion* 31,779 143,767 13,296 98,692 FY 24 JVs Throughput Gross Proforma Proforma Estimated Reported consolidated revenue Reven
Slide 30: Consolidated Debt Status, Reference Rates, and Notes
Consolidated Debt Status, Reference Rates, and Notes. A. Net Debt. Copper Rates. Average Q4 FY23 Q3 FY24 Q4 FY24 Rs. In Sep-22 Dec- 22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Crores LME Copper (USD / MT ) 8,930 8,169 8,444 Gross 12,671 12,968 12,166 12,546 19,228 19,186 17,351 Copper (INR / KG) 797 741 7
Slide 31: Annexure
motherson afl Annexure
Slide 32: SAMIL Consolidated Q4FY24 vs Q4FY23
SAMIL Consolidated Q4FY24 vs Q4FY23. (all figures are Rs. in Crores) Revenues 30,00 0 27,058 EBITDA 10.1% + 20% 9.0% + 45% 2,999 22,517 25,00 0 3,000 266 10. 0% 2,066 8. 0% 20,00 0 2,000 35 2,733 6. 0% 27,058 2,031 4. 0% 1,000 15,00 0 2. 0% - 0. 0% 1 2 10,00 0 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 PBT PAT
Slide 33: SAMIL Consolidated 12MFY24 vs 12MFY23
SAMIL Consolidated 12MFY24 vs 12MFY23. 9.2% (all figures are Rs. in Crores) 120,0 00 118,0 00 116,0 00 EBITDA 114,0 00 Revenues 112,0 00 98,692 8.0% 9,325 110,0 00 108,0 00 106,0 00 104,0 00 + 25% +46% 102,0 00 10. 0% 100,0 00 197 98,00 0 96,00 0 94,00 0 8,800 92,00 0 90,00 0 9. 5% 78,788 88,00 0 86
Slide 34: SAMIL Standalone
SAMIL Standalone. (all figures are Rs. in Crores) Q4FY24 Revenues EBITDA. 2,214 + 7% 2,366 + 15% 11.4% 330 10.6% 269 234 20. 0% 280 230 15. 0% 180 10. 0% 130 80 5. 0% 30 (20) 0. 0% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 12MFY24 + 13% EBITDA. + 29% 10,000 Revenues 9,046 13.1% 9,000 7,973 11.6% 1,186 8,000 1
Slide 35: Acquisition History
Acquisition History. Integrated 43 acquisitions since 2002 bringing a wide range of solutions to our customers. 2021 - 2024 32 Fritzmeier Motherson 40 AD Industries 24 Plast Met Cabin Engineering Pvt Ltd France Turkey (Aerospace and (Plastic moulded parts India (Cabins for off- highway vehicles) Med
Slide 36: Copyright notice
© Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing kn
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