Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Motherson Sumi Systems — Investor Presentation (December 2019)
39 slides from Samvardhana Motherson International's investor presentation, December 2019
Slide 1: Motherson Sumi Systems Ltd. Presentation
Motherson Sumi Systems Ltd. Presentation
Slide 2: 01 Introduction
01 Introduction. 2 2
Slide 3: Motherson
Motherson. •Motherson started in 1975 in Delhi as a partnership between my mother the Late Shrimati Swaran Lata Sehgal and me. •Our name signifies our aim to build relationship of trust with all stakeholders. 3
Slide 4: Today: 99% automotive focused, 100% Tier OEM supplier
Today. 99% automotive focused, 100% Tier 1 OEM supplier. US$ 11.7 bln. in yearly revenues. Operating is one over 270 < 2011-19 CAGR = 24.1% facilities in of the world’s 41 countries. Leading Over specialised 135,000 automotive people worldwide. component Working manufacturing with 33 joint companies
Slide 5: Group business portfolio today
Group business portfolio today. A growing portfolio that is diverse and scalable. 01 Wiring harnesses 02 Vision systems 03 Module & Polymer 04 Technology & Software Products 07 Aerospace, Defence & 05 Metal Products 06 Retail & Services 08 Logistics Security 5
Slide 6: Vision: To be a globally preferred solutions provider
VISION To be a We follow the customer and globally aim to be part preferred of their success. solutions provider. 6
Slide 7: 02 Growth
02 Growth. 7
Slide 8: How Motherson creates value
CHAKRA • Organically How • Partnerships • Acquisitions Motherson creates 3 Trust 4 Asked value. to do more This chakra creates a virtuous 2 Return 5 Focus on on trust Increase circle for all consistent content, value stakeholders. outstanding per car performance (QCDDMSES*) 1 Proud to be part of the
Slide 9: Our growth strategy
Our growth strategy. We focus on three 3 Inorganic Continuous pillars of growth. growth. non-linear growth. (22 acquisitions completed.) 2 Growth through joint ventures. 1 Organic growth. 9
Slide 10: Thanks to the trust of customers we rank among top global suppliers
1 ORGANIC GROWTH Thanks to the trust of customers we rank among the top global automotive suppliers. By sales of original equipment parts in 2018 we ranked 21st. 10
Slide 11: Proud to be part of the world's most admired brands
1 ORGANIC GROWTH …the JMC Renault Proud Land Tata Rover world’s Suzuki to be part of… Dongfeng Seat most admired Foton BMW Audi Honda Toyota Nissan brands. Fiat Paccar Peugeot Chrysler Volvo Porsche Hyundai Mahindra Mercedes Volkswagen Benz John Ford Deere GM 11 11
Slide 12: Gaining customer trust through continuously improving performance
1 ORGANIC GROWTH Gaining customer trust through continuously improving performance. C$"B)*+ G:)>#1$H*% K:+2 D:/:.$ E:%2$,M$+# A&0,9+:'( 8*H":%$), &'(()"*+,:;,.4*,<*$+, F*#.,M:#., M:%.+"L'.":%,01$+2, &")@*+,$1$+2 A*+;:+B$%7* A$+.%*+#,;:+,0#"$ 567*))*%7*,"%,-'$)"./ I%%:@$.":%,J, 9):L$),-'$)"./, M*+.";
Slide 13: Gaining customer trust through continuously improving performance
1 ORGANIC GROWTH Gaining customer trust through continuously improving performance. I-! ;-H! >"E<* ."55"% @"A'*#"% C2#24 -*627+ ;<=<7'+ F"%($9 8$9("4: >2#2%595($ B"3"6" G"A':*24 DE5$(($4#+ DE5$(($4#+ ;.>+8$":$%+-?"%: ;<&&('$%+21+#6$+B$"% DE5$(($4#+ )$*#+;<&&('$% /<"('#9+-?"%: /<"('#9+-?"%: .%2:<5#+G
Slide 14: Supporting customers globally
1 ORGANIC GROWTH Supporting customers globally. NETHERLANDS FINLAND LITHUANIA CZECH REPUBLIC HUNGARY Over 270 facilities in 41 countries. POLAND SLOVAKIA RUSSIA GERMANY ESTONIA UK IRELAND JERSEY LUXEMBOURG CHINA SPAIN JAPAN USA PORTUGAL SOUTH KOREA MOROCCO INDIA HONG KONG MEXICO FRANCE THAILAND ITAL
Slide 15: 33 facilities established across 9 countries during current 5 year plan
1 ORGANIC GROWTH 33 facilities established across 9 countries during current 5 year plan !"
Slide 16: Healthy Order Book of Euro 18.4 billion
1 ORGANIC GROWTH Healthy Order Book of Euro 18.4 billion . * !"
Slide 17: Adding technologies and products through Joint Ventures
2 GROWTH THROUGH JOINT VENTURES Adding technologies and products through Joint Ventures. 3 33 36 9 31 highest number of JVs age existing of our JV with one partner oldest partners partnership countries total of origin number of JV of JV companies partners working with 17
Slide 18: Approach to acquisitions
3 INORGANIC GROWTH Approach to Motherson has integrated 22 acquisitions, bringing a wide range of solutions to acquisitions. 08 customers. 05 Dagger Frost Tools Huon Corporation Australia India (Gear cutting tools), (Door trim business) Strategic business units purchase 17 21 22 12 Abraham and Co Re
Slide 19: Investor trust through consistently delivering on long-term targets
Investor trust Vision 2020 through $ 18 billion consistently MSSL delivering on long-term targets. $ 5 billion $ 9.19.1 billion 8.6 $ 8.6 billion $ 6.56.5 billion $ 1 billion $ 5.55.5 billion $ 5.75.7 billion $ 0.23 billion $ 0.02 billion $ 0.04 billion $ 0.24 billion $ 1.51.5 billion 0.04 0.24 2000
Slide 20: 5 year vision
1 2 USD 18 bn (MSSL) 40% FY 19-20. 202 (Revenue) ROCE (Consolidated) 5 year vision Our fifth 5-year plan. 3 4 3CX15 40% (No Country, Customer, dividend Component to (Of consolidated contribute more than profit) 15% to our revenues) 20
Slide 21: Returns to shareholders
Returns to shareholders. 2,207 X which is equal to 220,629% • INR 25,000 invested in the return MSSL IPO in 1993 is worth INR 55,182,244* Cumulative dividend (including cumulative dividend). Capital Value 268X 85X IPO 8X !""# $%%% $%%& $%!% $%!" 21 * As on 18th November 2019
Slide 22: 03 Changing trends
03 Changing trends. 22
Slide 23: Motherson is a powertrain agnostic OEM supplier
Motherson is a powertrain agnostic OEM supplier. Combustion Hybrid Electric BMW 740e 23
Slide 24: Mobility is changing but remains a fundamental human need
Mobility is changing but remains a fundamental human need. 24
Slide 25: Opportunities to increase content and value per car
Opportunities to increase content and value per car. Our parts fit all future trends. Electric Connected Hybrid Combustion Autonomous Rural, urban Shared Fuel cell 25
Slide 26: A total transportation solutions provider
A total transportation solutions provider. 26
Slide 27: Don't place bets. Follow the needs of the customer. Respond quickly.
Don’t place bets. Follow the needs of the customer. Respond quickly. 27
Slide 28: Well-placed to serve evolving customer demands globally
3CX15 None of our customer is currently more than 13% of our total turnover With 32 Well-placed to serve design centers and evolving customer 6 tool rooms, in over 270 demands globally. facilities in 41 countries. 28
Slide 29: We follow a globally local strategy
TARIFFS AND THE ‘HE-MAN’ CRISIS We follow a globally Our approach local strategy. • Manufacture and supply in the same region (not for exports) • Support local customers through local teams • Quickly react and adjust to changes in environment • Slower growth in one region gets balanced with faster g
Slide 30: Good times or bad times, there are always opportunities
Good times or bad times, there are always opportunities. 30
Slide 31: Like then, valuations are coming down
Like then, valuations are coming down. This brings great new acquisition opportunities to us. 31
Slide 32: 04 Principles
04 Principles. 32
Slide 33: Top line is vanity. Bottom line is sanity.
Top line is vanity. Bottom line is sanity. Cash in bank is reality. Never pursue top line for the sake of top line. 33
Slide 34: Never compromise the quality of our product
Never compromise the quality of our product. 34
Slide 35: People are the foundation
People are the Tied together with mutual foundation. trust. 35
Slide 36: The most adaptive wins
“The most adaptive wins.” Charles Darwin 36
Slide 37: MBA vs. creativity
MBA vs. “Knowledge creativity. gets you from A to B. Imagination gets you anywhere.” 37 Albert Einstein
Slide 38: Ekla chalo
Ekla chalo. The Motherson approach is not based on examples from corporate history. We believe we can and must write our own history. 38
Slide 39: Thank you
Thank you. Safe harbour This presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncerta
Motherson Sumi Systems — Investor Presentation (December 2019) on 6ix