Steel Strips Wheels Ltd · NSE:SSWL

Steel Strips Wheels — Investor Presentation (September 2016)

37 slides from Steel Strips Wheels's investor presentation, Sep 26, 2016

  1. Slide 1: Steel Strips Wheels Ltd.

    STEEL STRIPS WHEELS LTD. Sep-16

  2. Slide 2: The Company

    The Company Group STEEL STRIPS GROUP Chairman R. K. Garg Managing Director Dheeraj Garg Business Category Design, manufacturing and marketing of Steel Wheel Rims for Passenger cars, Utility vehicles, 2/ 3 wheelers, Tractors, Light/ Heavy commercial vehicles and OTRs Manufacturing 1. Dappar (Punjab)

  3. Slide 3: Foot Print

    H.O. CHANDIGARH MKTG. BO NEW DELHI SS <= So PRADESH Jail co RAJASTHAN © Agra 2 MKTG. BO | PUNE | TAMIL NADU -~ Se DAPPAR PLANT a c * g : MADHYA a = JHARKHAND PRADESH - c India Indore: CHHATTISGARH tas . Nagpur. - bee ~ Z ODISHA OBIHAR Patna . bd BENGAL | (50 km from port | CHENNAI PLANT » we 3 PEGHA

  4. Slide 4: Manufacturing Locations- Capabilities Dappar

    Manufacturing Locations- Capabilities Dappar, Chandigarh  Location: Chandigarh Ambala Highway  Capacity:  7.25 Million for Passenger cars, DAPPAR MUV’s, 2& 3 Wheelers. PLANT  1.75 Million for Commercial Vehicles, Tractors and OTR’s.  Area: 160,000 sq. meters of land with 55,000 sq. meters of bu

  5. Slide 5: Manufacturing Locations- Capabilities Oragadam, Chennai

    Manufacturing Locations- Capabilities Oragadam , Chennai  Location: App.35 Kms from Chennai  Capacity:  6.0 Million for Passenger cars & MUV’s.  Manpower: App. 700 people. CAR & MUV’S:  Diameter - 12” to 20”  Width - 2.5” to 8”  Maximum Tensile - 600 MPa CHENNAI PLANT Sep-16

  6. Slide 6: Manufacturing Locations- Capabilities Jamshedpur

    Manufacturing Locations- Capabilities Jamshedpur , Jharkand  Location: Close proximity to Tata Motors and Tata Steel.  SOP: July 2010.  Capacity:  1.6 Million for C.V. Wheels Manpower : App. 200 people. HCV Multi-Piece: 2/3 Pieces Width : 5.5"-13" JAMSHEDPUR Dia : 15"-24" PLANT Construction, Mi

  7. Slide 7: Partners in Success

    Partners in Success de © DAIMLER TATA ASHOK LEYLAND Daimler India Commercial Vehicles Pvt. Ltd. \ == VE COMMERCIAL VEHICLES = SWaRal MARI A VOLVO GROUP AND EICHER MOTORS JOINT VENTURE mazDa R + ahindra ESCORTS | Z LARSEN & TOUBRO CAE @ sexe INDUSTRIAL NEW FRONTIERS. NEW DREAMS Sep-16 G.

  8. Slide 8: Partners in Success

    Partners in Success Kibo. @€ JOHN DEERE E See Ta a, > NA! Ve INTERNATIONAL GCA |p) DREMEL SING TECHS TRACTORS & MOTORS LTD. YyFyFW Aetstt > @} Piaccio’ eA S SUZUKI HIONDA scooters INDIA LIMITED Sep-16 G.

  9. Slide 9: Partners in Success

    Partners in Success PSA PEUGEOT CITRO xl a @ Cc» SS MARUTI _ SSANGYONG SUZUKI genau NISSAN Mahindra Sep-16

  10. Slide 10: SSWL Export Customers Locations

    SSWL Export Customers Locations Russia UK Germany Poland Canada Netherlands Slovakia France Romania Japan Austria Hungary Spain S Korea Italy Morocco Egypt U.A.E. Thailand Colombia Brazil Argentina Customers Locations Sep-16

  11. Slide 11: New Domestic Business Allocations (Steel Wheels)

    New Domestic Business Allocations (Steel Wheels) Vehicle Name SSWL SoB •Maruti Celerio 100% •Hondo Mobilio 100% •Hyundai Xcent 100% •Tata Zest/Bolt 50% •Maruti Breeza 100% •Maruti CIAZ 100% •M&M TUV 300 100% •M&M KUV 100 100% •Maruti YAD 100% •Datsun Go Plus 100% •Renault Lodgy 100% •Maruti Baleno 1

  12. Slide 12: SSWL Market share of Current Business in Steel Wheels

    SSWL Market share of Current Business in Steel Wheels Segment SoB Passenger Car 50% Tractor 38% Commercial Vehicle 40% OTR (Back Hoe Loader) 70%

  13. Slide 13: Sales Performance Turnover Value

    Sales Performance Turnover Value TOTAL SALES TURN OVER USD MLN 250 220 213 200 195 175 180 150 100 50 - 2011-12 2012-13 2013-14 2014-15 2015-16 *FY16 is impacted by Steel Reduction passed on to Customer Sep-16

  14. Slide 14: Sales Performance Turnover Volumes

    Sales Performance Turnover Volumes No. of Wheels in Mn 14.00 13.17 12.47 12.00 11.04 10.19 10.11 10.00 8.00 6.00 4.00 2.00 0.00 2011-12 2012-13 2013-14 2014-15 2015-16 Sep-16

  15. Slide 15: Segment Wise Volume Mix

    Segment Wise Volume Mix 120.0% 100.0% 10.6% 7.7% 6.5% 8.4% 6.1% 7.4% 10.2% 11.2% 80.0% 60.0% 60.2% 59.6% 61.6% 58.2% 40.0% 20.0% 23.2% 25.4% 21.6% 22.3% 0.0% 2013-14 2014-15 2015-16 Q1 2016-17 2-3 WHEELER CAR/MUV TRUCK/OTR TRACTOR Mix is now tilting towards heavier wheels thus improving realization

  16. Slide 16: Plant Wise Capacity Utilization

    Plant Wise Capacity Utilization 100% 90% 37.39% 56.49% 83.07% 95.73% 80% 70% 46.04% 60% 60.77% 50% 65.14% 69.33% 40% 30% 85.11% 20% 88.53% 87.77% 93.81% 10% 0% 2013-14 2014-15 2015-16 Q1 2016-17 Dappar Chennai Jamshedpur Utilization levels across all the facilities have moved up. The growth is subst

  17. Slide 17: Exports Turn over Volumes

    Exports Turn over Volumes 1800 NO. OF WHEELS IN ‘000 s 1600 1400 1200 1000 800 1533 1513 1426 1285 600 1206 400 200 0 2011-12 2012-13 2013-14 2014-15 2015-16 Sep-16

  18. Slide 18: SSWL Performance Q4 and FY16

    SSWL Performance Q4 and FY16 Q4 Q4 Growth Full Year Full Year Growth 2015-16 2014-15 2015-16 2014-15 Gross Sale 34,419.63 32,675.08 5.34% 131,979.83 127,874.65 3.21% EBITDA 4,682.48 3,649.31 28.31% 16,414.61 12,817.53 28.06% 14.89% 12.25% 13.67% 10.92% PBT 2,405.46 1,558.23 54.37% 7,904.99 4,867.24

  19. Slide 19: SSWL Performance Q1 FY17

    SSWL Performance Q1 FY17 (Rs in Lacs) Q1 Q4 Growth Q1 Q1 Growth 2016-17 2015-16 2016-17 2015-16 Gross Sale 36,309.18 34,419.63 5.49% 36,309.18 32,643.84 11.23% EBITDA 4,737.01 4,682.48 1.16% 4,737.01 3,599.99 31.58% 14.37% 14.89% 14.37% 12.16% Finance Cost 1,062.24 1,166.15 9.78% 1,062.24 1,086.58 2

  20. Slide 20: SSWL EPS Trend

    SSWL EPS Trend 43.00 40.09 38.00 33.00 28.00 25.83 23.00 20.09 19.38 16.48 18.00 15.99 13.00 8.00 3.00 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

  21. Slide 21: Cash Accrual vs Secured Term Debt Repayment

    Cash Accrual vs Secured Term Debt Repayment (Rs Cr) 120 103.2 100 80 74.7 76.9 77.6 71.4 60 72.0 53.1 52.9 56.6 57.5 40 20 0 2011-12 2012-13 2013-14 2014-15 2015-16 Cash Accrual Secured Term Debt Repayment

  22. Slide 22: EBITDA Trend

    EBITDA Trend (Rs Cr) 180.0 164.1 160.0 140.0 118.5 128.2 120.0 105.0 100.2 100.0 80.0 60.0 40.0 20.0 - 2011-12 2012-13 2013-14 2014-15 2015-16

  23. Slide 23: Growth Driver

    Growth Driver CV Wheel Sale JSR Capacity Utilisation CV Sales(In Lacs Nos) JSR Plant Utilisation 16.00 90.00% 82.91% 14.00 13.47 80.00% 70.00% 12.00 60.00% 56.25% 10.00 9.24 50.00% 8.00 6.70 37.40% 40.00% 6.00 30.00% 4.00 20.00% 2.00 10.00% - 0.00% 2013-14 2014-15 2015-16 2013-14 2014-15 2015-16 Sep

  24. Slide 24: ROCE Trend

    ROCE Trend 14.0% 13.2% 13.0% 12.0% 11.3% 11.8% 11.0% 10.0% 9.0% 8.5% 8.2% 7.5% 9.0% 8.0% 7.0% 7.3% 6.0% 6.7% 6.2% 5.0% 4.0% 2011-12 2012-13 2013-14 2014-15 2015-16 ROCE% ROCE (Adjusted for revauation reserve & cwip) Even with Alloy Wheel project in 2016-17 ROCE is expected to remain in double digit.

  25. Slide 25: Financial Leverage (Consolidated)

    Financial Leverage (Consolidated) 5.50 5.34 5.19 5.16 4.96 5.00 4.54 4.50 4.19 4.00 3.42 3.50 3.00 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 With Alloy Wheel in 2016-17, Leverage is expected to be around 4. Sep-16

  26. Slide 26: Secured and Total debt

    Secured and Total debt (Rs Cr) 1000.00 900.00 629.13 578.65 583.58 800.00 568.07 508.17 700.00 600.00 500.00 400.00 300.00 233.02 229.31 226.93 201.11 186.24 200.00 100.00 0.00 Mar' 12 Mar' 13 Mar' 14 Mar' 15 Mar' 16 SECURED TERM DEBT TOTAL DEBT Sep-16

  27. Slide 27: SSWL Alloy Wheels Plant Mehsana, Gujarat

    SSWL ALLOY WHEELS PLANT MEHSANA, GUJARAT IN TECHNOLOGICAL COLLABORATION WITH KALINK, KOREA

  28. Slide 28: Geographical Location Mehsana, Gujarat

    Geographical Location Mehsana, Gujarat H.O. - CHANDIGARH MKTG.BO 1. DAPPAR PLANT NEW DELHI MEHSANA PLANT 4. MEHSANA PLANT ( 300 km from Kandla port ) MKTG. BO MUMBAI 3. JAMSHEDPUR PLANT (300 km from Kolkata port) MKTG. BO PUNE 2. CHENNAI PLANT ( 50 km from port ) Location Distance Customer Plant Tot

  29. Slide 29: Proposed Alloy Wheels Plant: Gujarat

    Proposed Alloy Wheels Plant: Gujarat •Proposed location: Mehsana, Gujarat •Land measuring: 240,000 Sq Mt.; Product Size Range: 14” to 20” •Capacity: Production: 1.5 Mln & Painting: 2.5 Mln; Low Pressure Die Casting with Diamond Cutting •Investment: Approx USD 50 Mln. Kalink will invest USD 2 Mln in

  30. Slide 30: Why Alloy Wheels?

    Why Alloy Wheels? •Appearance Alloy wheels have enhanced aesthetic appeal and look much better than Steel wheels •Weight Lighter in weight compared to Steel wheels leading to better fuel efficiency of the car and helps in adhering to stricter emission norms •Strength Aluminum mixed with other metals

  31. Slide 31: Why SSWL For Alloy Wheels?

    Why SSWL For Alloy Wheels? •Wheel Manufacturing/Selling Experience SSWL already into manufacturing/selling steel wheel rims across all leading PV Manufacturers. With Alloy wheel, SSWL will be covering the entire portfolio covering Steel/Alloy Wheel under one umbrella. •Established Customer Base SSWL

  32. Slide 32: SWOT analysis SSWL

    SWOT analysis SSWL STRENGTH WEAKNESS 1. SSWL leading supplier of Steel Wheel rims in India. 1. Growth dependent of industry. Though Company is 2. Diversified customer base, all major OEM’s are covered mitigating the same with diversified customer base. 3. Globally accepted product and excellent repu

  33. Slide 33: Alloy Wheels opportunity analysis

    Alloy Wheels opportunity analysis Kosei-Minda, Chennai Enkei, Pune 1. Annual Installed Capacity of 0.84 Mln wheels 1. Annual Installed Capacity of 0.96 Mln wheels 2. Quality issues with high rejections % 2. No immediate capacity expansion plans 3. High operating costs due to expensive Power, Gas 3.

  34. Slide 34: Technological Partner: Kalink

    Technological Partner: Kalink Kalink, Korea Part of HIHO Group, Headquartered in Seoul, Korea with its presence in Aluminum Alloy Billet production, Trading of Aluminum for Mining and Smelting Group sales of more than USD 1.3 Billion Kalink has 2 plants for Aluminum Alloy wheels: Korea (1.6 Mln w

  35. Slide 35: Proposed Time plan for SOP

    Proposed Time plan for SOP Completion Sr. No. Activity Status month 1. Land Purchase May 2015 Completed 2. Project agreement sign off with Kalink Sep 2015 Completed 3. Groundbreaking Dec 2015 Completed 4. Building and Utilities completion Sep 2016 Planned 5. Equipment Erection Dec 2016 Planned 6. Co

  36. Slide 36: Summary of Project Cost

    Summary of Project Cost Sep-16

  37. Slide 37: Thank You

    Thank You Sep-16

Steel Strips Wheels — Investor Presentation (September 2016) on 6ix