Sandhar Technologies Ltd. · NSE:SANDHAR
Sandhar Technologies — Investor Presentation (August 2018)
35 slides from Sandhar Technologies's investor presentation, Aug 31, 2018
Slide 1: Investor Presentation
AUGUST 2 0 1 8 Investor Presentation
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sandhar Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Sandhar Technologies – Overview
Sandhar Technologies – Overview Incorporated in 1987 by a first generation entrepreneur, supported by a qualified management team, History of PE investment Customer-centric component supplier, largely focused on vehicular safety and security systems with a pan- India presence and growing internation
Slide 4: Diversified Product Portfolio
Diversified Product Portfolio Locking Systems (22.4%) 21 product lines Vision Systems ( 11.9%) Al Die Casting (14.9%) 2 Wheeler PV/CV OHV, Tractors Non-Auto Tier-1 59% 13.8% 9.9% 3% 14.5% Sheet Metal Components ( 12.7%) Entry into high value-added products -which enables it to achieve significant sc
Slide 5: Diverse Product Portfolio Across Various End-User Segments
Diverse Product Portfolio Across Various End-User Segments Upto Rs. 11,750 worth of parts Upto Rs. 3300 worth of parts Upto Rs. 3,800 worth of parts Gone up from Rs. 10,881in 2015 Gone up from Rs. 2500 in 2015 Gone up from Rs.3200 in 2015 Over 2,400 Part & Component Nos. Locks, Vision, Handles & Swi
Slide 6: Long-standing and Growing Relationships with Major OEMs
Long-standing and Growing Relationships with Major OEMs 2 Wheelers Relationship with 79 OEMs Outperformance vs. Auto spread across India, East and Market(1) West Europe, and NAFTA regions (1) CAGR from FY13-18 11% Long standing relationship with 4 Wheelers quality and timely delivery 8% 7% Successfu
Slide 7: Manufacturing Locations in Close Proximity to Automobile Hubs
Manufacturing Locations in Close Proximity to Automobile Hubs Taking Production to Customers Technology Platforms Scalability and High Precision Sheet Metal stamping / Fabrication flexibility Non-Ferrous Die Casting ( Zinc- Aluminium- Magnesium) Plastic Moulding Risk mitigation Surface Treat
Slide 8: Innovation through In-house R&D and Technical Collaborations
Innovation through In-house R&D and Technical Collaborations R&D projects across segments Most manufacturing facilities TC agreements with Honda Locks viz. Security system, mirror, have own engineering and JEM Techno, and 6 JVs with evaporator products, departments established players electronics, a
Slide 9: List of Patents
List of Patents Segment Category Patent Three-point locking mechanism Anti–theft bike stand lock Magnetically operated handle lock cum ignition switch for two and three-wheeler vehicles Leadership A cable actuated fuel tank cap with compact locking mechanism for motorcycles Magnetically operated han
Slide 10: Experienced Management Team Backed by Good Governance Standards
Experienced Management Team Backed by Good Governance Standards Executive Management Team Jayant Davar Arvind Joshi Co-Chairman and Managing Director Whole time Director, Chief Financial Officer, Company Secretary First generation entrepreneur with 3 decades of experience in auto CA, CS and LLB
Slide 11: Business Structure
Business Structure Sandhar Technologies Business Divisions Subsidiaries Joint Ventures Sandhar Technologies Barcelona Indo Tooling Sandhar Automotives Sandhar Components [100%]* Stamping Tools Locking Systems Sheet Metal Stampings Sandhar Technologies Mexico Vision Systems Plastic Injectio
Slide 12: Management Organisation Chart
Management Organisation Chart Co-chairman & Managing Director Mr. Jayant Davar Wholetime Director, CFO & CS Mr. Arvind Joshi CORPORATE New Central Central Resource Internal Accounts Human Research & Information Projects Maintenance Procurement Mobilisation Audit Controller Resources Development Tech
Slide 13: In-house Capabilities and Best Practices
In-house Capabilities and Best Practices Centralised Procurement Division (CPD) Centralised Maintenance, Capital Asset Management Harness synergies in purchasing Development of vendor base Management of assets across all manufacturing facilities in India Control variations in purchase prices
Slide 14: Key Strategies
Key Strategies Increasing wallet Expansion of share from existing customer base OEM customers Inorganic growth Product portfolio through strategic expansion through acquisitions investments Ensure efficiency Enhance and cost innovation and optimization design capabilities INVESTOR PRESENTATION 14
Slide 15: Demand Drivers vs. our Preparedness
Demand Drivers vs. our Preparedness Changes in Safety Norms Auto Fuels and Emission Norms Government of India has proposed to Successful implementation of BS IV make certain safety features mandatory in BS VI to be introduced in April 2020 near future Rear-parking sensors ABS, CBS Tyre-p
Slide 16: Expansion to Adjacent Industry Segments
Expansion to Adjacent Industry Segments Leadership in 2W/4W Entry into Construction Marked Presence in Segments Equipments CE Segment Leader in 2W locking Addition of operator Largest player in excavator systems market in India cabins through acquisition cabins market of Mag Engineering in L
Slide 17: Jinyong Sandhar Mechatronics Pvt. Ltd
Jinyong Sandhar Mechatronics Pvt. Ltd Capability AVN Panel Assemblies and Switches AVN Panel Assemblies Location: Chennai Switches This is a Joint Venture with Jinyong Electro-Mechanics. Customer: Hyundai Mobis Remocon Switch LWR Switch Center Fascia Switch INVESTOR PRESENTATION 17
Slide 18: Sandhar Daewha Automotive Systems Pvt. Ltd.
Sandhar Daewha Automotive Systems Pvt. Ltd. Capability Fuel Pumps, Filters and Wiper blades Location: Manesar (production likely to start by April 2018) Electric Fuel Pump Electric Fuel Pump Electric Fuel Pump Electric Fuel Pump Module (EFI for 2 wheeler) (EFI for 4 wheeler) Transistor type (For 2 a
Slide 19: Upcoming Projects
Upcoming Projects Sandhar Daeshin Joint Venture Gear Shifters Automatic & Manual and Parking Brake Levers Gear Shifters Parking Brake Lever Sandhar Amkin Joint Venture Helmets – Full Face, Flip Up, Open Face and Moto Cross Sandhar Whetron T C and Joint Venture Rear Parking Sensors, Cameras, Automati
Slide 20: Strong Track Record of Topline Growth.. (cont’d)
Strong Track Record of Topline Growth.. (cont’d) Consistent Revenue Growth… 19,888 15,179 16,335 14,873 12,689 11,623 FY13 FY14 FY15 FY16 FY17 FY18 Segmental share of auto industry in 2017-18 Automotive component demand trajectory (Mn Units) (Mn Units) (INR Bn) 3,000 12% 15 20.0 11% 8% 8% 10% 2,500
Slide 21: ..Translating to Healthy Returns.. (cont’d)
..Translating to Healthy Returns.. (cont’d) Healthy EBITDA Margins.. ..and PAT Margins.. 3.3% 10.7% 2.6% 2.6% 2.4% 9.5% 9.7% 9.6% 9.3% 2.2% 8.2% 1.7% 416 954 1,202 1,444 1,460 1,525 2,130 192 332 384 337 656 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 EBITDA (INR Mn) EBITDA Margin PA
Slide 22: ..Through Investments Already in Place
..Through Investments Already in Place Capital Expenditure(1) Behind Cumulative Addition to Gross Block (2) (INR Mn) (FY13-18) Office Furniture & Equipments fixtures 3% 1% 1,761 Land (Freehold Vehicles Intangible + Leasehold) 1% 4% 6% 1,185 1,113 1,075 1,101 INR 904 Buildings 17% 5554 Mn* Plant & Eq
Slide 23: Standalone…Profit & Loss (Rs in Crs)
Standalone…Profit & Loss (Rs in Crs) S.N. PARTICULARS Q1 FY'19 UA Q4 FY'18 A Q1 FY'18 UAFY '18 A 1 Revenue from operations 493.37 411.61 432.33 1,721.40 2 Other income 0.79 1.45 0.95 4.44 3 Total income (1+2) 494.16 413.05 433.28 1,725.84 4 Expenses (a) Cost of materials consumed 314.63 245.83 247.3
Slide 24: Standalone…Balance Sheet (Rs in Crs)
Standalone…Balance Sheet (Rs in Crs) As at As at As at As at Particulars 31 March Particulars 31 March 30 June 2018 30 June 2018 2018 2018 Assets Equity and liabilities Non-current assets Equity Property, plant and 572.27 519.17 Equity share capital 60.19 60.19 equipment Other equity 585.13 563.39 C
Slide 25: Summary …..As on 30th Jun’18
Summary …..As on 30th Jun’18 Net Worth ( Rs in Crs) Gross Block (Rs in Crs) 649 (+22) 702 (+68) 129 (-200) 61(+ 11) Borrowings Investments Cash generated from Operations Cash Used in Investing 50.0 33 61/53 9 Increase in WC / Borrowings Free Cash Flow INVESTOR PRESENTATION 25
Slide 26: Detailed Financial Statements: Balance Sheet (1/2)
Detailed Financial Statements: Balance Sheet (1/2) Particulars As at As at As at Particulars As at As at As at 31 March 31 March 1 April 31 March 31 March 1 April 2018 2017 2016 2018 2017 2016 Asse ts Liabilities Non-curre nt asse ts Equity Property, plant and equipment 66,261.81 58,152.83 51,225.19
Slide 27: New Business Status
New Business Status Annual - Rs. 47 Crs Annual - Rs. 76Crs Annual - Rs. 59 Crs OHV - Rs. 81 Crs Others - Rs. 21.59 Crs Annual - Rs. 11.15 Crs INVESTOR PRESENTATION 27
Slide 28: New Business Status- Product category
New Business Status- Product category Total New Annual Business awarded: Rs. 276 Crs Lock Assembly • Rs.77 Crs Sheet Metal components • Rs. 48 Crs Mirror Assembly • Rs 35 Crs Cabins & Fabrication • Rs. 38 Crs Handle Assemblies • Rs 28 Crs Aluminium Die Casting • Rs. 30 Crs Zinc Die Casting parts • R
Slide 29: Detailed Financial Statements: Cash Flow Statement (2/2)
Detailed Financial Statements: Cash Flow Statement (2/2) For the For the year ended year ended Particulars 31 March 31 March 2018 2017 Cash Flow from Operating Activities Profit Before Tax 9,702.12 5,206.83 Adjustments : 11,115.66 9,600.85 Operating Profit before Working Capital Changes 20,817.78 14
Slide 30: Improving Industry Growth Across Segments
Improving Industry Growth Across Segments 2-Wheelers Segment Passenger Vehicles Segment (Mn Units) (Mn Units) 22.9 21.5 4.2 20.1 17.6 3.7 15.9 16.4 3.3 14.8 2.8 3.0 2.5 2.5 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY14 FY15 FY16 FY17 FY18E FY19E FY20E Commercial Vehicles Segment Construction Equipment
Slide 31: Strong Macroeconomic Tailwinds
Strong Macroeconomic Tailwinds High Real GDP Growth… …with Declining Inflation (INR Tn) CPI Inflation (YoY) 9.4% 7.5% 8.0% 7.1% 5.9% 6.4% 7.0% 4.9% 4.5% 4.0% 98 105 114 122 130 177 FY14 FY15 FY16 FY17 FY18P FY22P FY14 FY15 FY16 FY17 FY18E GDP (Constant FY12 prices) GDP growth (YoY) Increase in purch
Slide 32: Subsidiaries
Subsidiaries Ownership % Business Manufacturing Operations Facilities Spain (2) Aluminium Spindles Sandhar Technologies Mexico (1) 99.88% Reel Axles acting as Barcelona, S L Poland (assembly/ Seat Belt Retractors packaging) Tools, Moulds Sandhar Tooling 79.92% Dies Manesar, Gurugra
Slide 33: MoUs and Technical Collaborations
MoUs and Technical Collaborations MoUs Various Players in 9 non-binding MoUs for manufacturing products such as South Korea, smart key systems, fog lamp and shield lamp parts, China, and shark-fin antennas, carbon canisters, and valves, among Malaysia others Technical Collaborations Use of JEM’s
Slide 34: Strategy
Strategy • To capture new growth opportunities • To consolidate market around existing portfolio Technology • Define long term roadmap [TBU] • Strategic positioning in the value chain of product & service Cost • Implement lower operating cost base • Ensure sufficient financing for the upcoming trans
Slide 35: Thank You
[TBU] Thank You INVESTOR PRESENTATION 35
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