Minda Corp. Ltd. · NSE:MINDACORP
Minda — Investor Day (February 2019)
51 slides from Minda's investor day presentation, Feb 28, 2019
Slide 1: Analyst and Investor Day Presentation
Driver Information And Telematics System Minda Corporation Limited (NSE: MINDACORP; BSE: 538962) Analyst and Investor Day Presentation Safety, Security And Restraint System 28th February 2019 Interior System Instrument Clusters Sensors Wiring Harness Locks Door Handles Starter Motors Al & Zn Cutting
Slide 2: Agenda
Agenda • Strategic Overview • Business Overview and Financials • Marketing and Technology 2
Slide 3: Transform and Rise
“Transform and Rise” Mechanical Automotive Mechatronics
Slide 4: Minda Corporation at a Glance
‘Minda Corporation’ ‘Minda Corporation’ at at a a Glance Glance • Safety and Security No of Plants: 1958 Founded by 4 • Driver Information and Telematics 34 • India: 28 • Europe: 3 Late Sh. S.L. Minda Business Founded • Interior Plastic Plants • South East Asia: 2 Verticals • Aftermarket • North Ame
Slide 5: Strategic Focus – Growth Drivers
Strategic Focus – Growth Drivers Growth Drivers #1 #2 #3 #4 Technology Organic Operational Excellence • Upgradation of • Increased content per Inorganic growth legacy products Vehicle through higher in adjacent areas • New advanced customer engagement Quality Leadership offerings in non • Exports le
Slide 6: We Will Continue to Focus on Enhancing Shareholders' Wealth
We Will Continue to Focus on Enhancing Shareholders’ Wealth 6
Slide 7: Agenda: Business Overview and Financials
Agenda • Strategic Overview • Business Overview and Financials • Marketing and Technology 7
Slide 8: One of India's Leading Automotive Component Companies with Global Footprint
One of India’s Leading Automotive Component Companies with Global Footprint Diversified product portfolio, global customers, strong Revenue Breakdown 9M FY2019 manufacturing, and advanced R&D with six decades of automotive experience By Geography By End Market Revenue* Rs. 25,934 mn (FY2018) South A
Slide 9: Robust Growth
Robust Growth Rs. mn Revenue EBITDA Net Profit CAGR 21.5% 24.4% 27.9% 1,671 30,411 2,920 2,729 1,417 25,934 1,284 23,206 2,102 20,598 1,887 1,021 10.5% 9.2% 9.6% 9.1% 5.4% 5.4% 5.5% 4.9% FY17 FY18 LTM Dec 19 9M FY19 FY17 FY18 LTM Dec 19 9M FY19 FY17 FY18 LTM Dec 19 9M FY19 Notes: • Revenue including
Slide 10: Business Vertical Performance
Business Vertical Performance Rs. mn Safety Security & Restraint System Driver Information & Telematics System Interior System 14,148 12,158 9,941 10,330 10,662 6,321 8,327 7,710 5,449 4,834 6120 4148 12.0% 12.3% 10.4% 11.1% 9.3% 9.8% 10.2% 9.9% 10.2% 6.3% 3.2% 0.6% FY17 FY18 LTM Dec-18 9M FY19 FY17
Slide 11: Strong Balance Sheet with Steady Returns
Strong Balance Sheet with Steady Returns Return on Capital Employed (ROCE) Net Debt/Equity 0.95x 17.2% 0.81x 15.9% 13.9% 0.38x FY17 FY18 Sep-18 FY17 FY18 Sep 18 Note: • IND-AS are applicable to Minda Corporation from 1st April 2017 with transition date of 1st April 2016 11
Slide 12: Consistent Dividend Payout and Ratings Upgrade
Consistent Dividend Payout and Ratings Upgrade Minda Corp Long Term Credit rating Consistent Dividend Payout upgraded by two rating agencies inand NSE Listed on BSE current financial year 30% IND AA- Stable 25% 25% 20% A+ 10% 10% 10% 12.5% 12.5% Stable FY2015 FY2016 FY2017 FY2018 FY2019* Interim Div
Slide 13: Agenda: Scheme of Merger
Agenda Rot nt cr * Scheme of Merger
Slide 14: Scheme of Merger of Domestic subsidiaries (WoS)
Scheme of Merger of Domestic subsidiaries (WoS) The Company has filed the Scheme of Consolidation of 100% Indian merger with NCLT Delhi and Bengaluru for 1 subsidiaries will result in a merger of domestic wholly owned larger standalone entity subsidiaries (WoS) into Minda Corporation (MCL) Synergi
Slide 15: Current Group Operating Structure
Current Group Operating Structure MINDA CORPORATION Promoter stake 64.67% 100% 100% 25% Minda KTSN Minda Automotive* Furukawa Minda Germany 50% Minda Management* Minda VAST 100% Minda Autoelektrik* Minda KTSN Poland 51% Minda SAI* Minda Stoneridge 100% Minda KTSN 100% Almighty Spark Minda Foundation
Slide 16: Agenda: Minda KTSN Europe
Agenda Rot nt cr ¢ Minda KTSN Europe
Slide 17: European Auto Industry Facing Challenges
European Auto Industry Facing Challenges EU Car Registrations down Month on Month In December 2018, the EU passenger car market declined for the fourth month in a row. Last month registrations fell by 8.4%, continuing the downward trend that started with the introduction of WLTP in September. With t
Slide 18: Minda KTSN Europe
Minda KTSN Europe Snapshot Minda KTSN Product Portfolio Manufactures Interior Plastic Products- Cupholder, Glovebox, steering column shrouds etc Marquee Customers including VW, Audi, BMW, Daimler, Porsche and Tier 1 suppliers Steering Column Cup Holder Challenges Impacted by WLTP emission
Slide 19: Agenda: Marketing and Technology
Agenda • Strategic Overview • Business Overview and Financials • Marketing and Technology 19
Slide 20: Diversified Customer Portfolio
Diversified Customer Portfolio Volvo JLR BMW VW Group Yamaha Piaggio M&M Maruti Suzuki Bajaj TVS Ford Tata Motors Harley Davidson Ashok Leyland Renault Hero Nissan Honda 20
Slide 21: Growth Factors / Key Focus Areas / Inorganic
Growth Factors / Key Focus Areas / Inorganic • Shift from component • Electronification • Growth through new • Premiumization to module/ geographies, new system supplier • KAM for better products and new • Increased focus on account acquisition & technologies Export & after market Adapting the • pen
Slide 22: Guiding Force - Automotive Mission Plan 2026
Guiding Force - Automotive Mission Plan 2026 22
Slide 23: Outperforming the Industry Growth
Outperforming the Industry Growth CAGR (FY17 to LTM Dec 19) • Consistently outperformed industry growth 25% over the years through 21.5% • New products in existing customers • New customers with existing 20% products 17.0% • New customers with new products 15% 11.5% 12.2% • Export remained a focus a
Slide 24: Revenue Breakdown 9M FY2019
Revenue Breakdown 9M FY2019 By Geography By End Market Passenger South East After Market Vehicles Asia 9.7% 20.8% 4.8% Europe & North America Commercial 26.0% Vehicles 31.4% By Business Segment 2-3 India Wheelers 69.1% 38.2% Inerior Systems 20.8% Safety Security & Restraint Systems 45.9% Driver Info
Slide 25: Exports Long Term Focus
Exports Long Term Focus Products Segment Geographies Existing 1. Aluminum Castings 1. 2W & ATV 1. Europe 2. W/H & Connector 2. Tractors & Farm Equipment 2. North America 3. Starters & 3. Tier 1 3. ASEAN Alternators 4. Security Systems New LTM Dec 18 Rs. 240 Cr. 1. Turkey CAGR 30% Export continue t
Slide 26: Current Market Position – Domestic
Current Market Position – Domestic Market Leader in India for Locksets in 2W segment (>30% Market Share) Market Leader for Wiring Harness in CV, 2W and Tractor segment in India (>30% Market Share each) Market Leader in India for Instrument Clusters, Commercial Vehicle segment (>60% Market Share) Mar
Slide 27: Future Market Situation (Content per Vehicle) – Domestic
Future Market Situation (Content per Vehicle) – Domestic 2X 2X Segment Wise Movement Technology Roadmap 1.5X 4X 2X 2W 3W CV PV TRACTOR FY18 FY22 27 Note: Content Per Vehicle are illustrative and based on assumption that all products manufactured by the Group are supplied to a vehicle in India
Slide 28: Technology
Agenda Rot nt cr ¢ Technology
Slide 29: Mega Trends Leading to Opportunities
Mega Trends Leading to Opportunities ADAS, Autonomous & Connected Mobility Shared Mobility Electrification AI , Safety Electronification ( Implementation ) Regulatory ( Push ) SW as a differentiator Vehicle Emission BSVI “CASE” is seen as a driver towards the future of mobility Priority It
Slide 30: Spark Minda Technical Centre (SMIT)
Spark Minda Technical Centre (SMIT) ~100 Engineers !! > 30% Masters Degree Anechoic EMC Lab 2 PhD’s Diverse work force HIL / SIL Lab SMIT is able to attract talent resources from automotive industry !! 30
Slide 31: Mechanical to Mechatronics : Transformation
Mechanical to Mechatronics : Transformation 31
Slide 32: Evolution of vehicle access technology
Evolution of vehicle access technology BLE Immobilizer Gesture based Artificial Key less entry System Intelligence With Remote / Smart access Ignition Key Key Entry ( PEPS ) 32
Slide 33: Evolution of vehicle access technology: Smart Key
Evolution of vehicle access technology Smart Key 2w Two Types of Smart Key Systems developed – Knob Type and Automatic Content per Vehicle Knob Type : 3X & Automatic :6X 5 Programs acquired, 1st SOP from Oct 2019 iRIS 1.5 / 2.0 & Standalone ESCL 4w IRIS 1.5 : Price differentiator , 50 % pr
Slide 34: Mechanical to Digital Clusters
Mechanical to Digital Clusters Reliability Reliability Basic Features Enhanced Features Digital Digital : Connected Working on various 2W / 4W programs Content per vehicle : 2X SOP’s starting M’2019 ( BS6 Programs ) Mechanical Mechatronics Group is prepared well for the digitization technologies lea
Slide 35: Wiring Harness : Technology & complexity increase
Wiring Harness : Technology & complexity increase Changes Element BSIV BSVI Impact Circuits ~ 200 ~ 250 ~30% Increase BS4 to BS6 CRDI + Exhaust Connectors ~ 30 ~ 45 ~15% Increase after treatment + Safety Special Circuit •Twisted Pairs •Twisted Already Used features Content •Shielded Pairs Increa
Slide 36: Sensors: Technology & complexity increase
Sensors: Technology & complexity increase Temp, Speed Diesel Filter Position, EGT, EGRT, & Level Actuators Sensors ABS, Level PM sensor • Motorized linear travel • RTD elements • Perfect replacement • PT1000 , PT 200 option for cable latch • Hall / MR based systems • PM sensor – • Direction • Rated
Slide 37: Electric Mobility Solutions
Electric Mobility Solutions 37
Slide 38: Spark Minda : EV Products Strategy (Non-legacy)
Spark Minda : EV Products Strategy ( Non-legacy ) Battery : Lead acid / Lithium DC-DC Convertor Battery Voltage : 48 to 60 v Battery Capacity : 25 to 120 AH Motor : 600W – 3 kW Battery Charger Peak Speed : 25km – 80 km Range : 60km – 120km Products ≤ 3 KW Motor Controller 38
Slide 39: Evolution of EV in India : 2W / 3W solutions
Evolution of EV in India : 2W / 3W solutions Content Per Vehicle ~ INR 5150 Battery Charger Battery Charger : 190V-270V AC DC-DC Converter DC-DC Converter : 12V, 120 & 240 W OEM acquisition Project Status ongoing, Likely SOP from Dec 2019 Project Status Vol. ramp-up in 2019 Motor Controller Te
Slide 40: Evolution of EV in India : Entry level PC solutions
Evolution of EV in India : Entry level PC solutions Content Per Vehicle ~ INR 20000 Battery Charger Telematics Battery Charger : 190V-270V AC Telematics Project Status Launch by M’2020 Additional customer Project Status acquisition in EV ongoing DC-DC Converter Product Developed & in Mass Prod
Slide 41: Connected Mobility Solutions
Connected Mobility Solutions 41
Slide 42: Connected Mobility Solutions
Connected Mobility Solutions Driver SOP LOI Behavior Fleet Service Manage- Alert ment Remote Services Anti e-Call FMS Theft SOP SOP Shared Mobility Women Safety Fuel Data Pilferage SOP Analytics POC LOI : Letter of Indent SOP: Start of production POC : Proof of concept ready AIS140 certified Group h
Slide 43: Integrated Tracking System (ITS 1.0)
Integrated Tracking System (ITS 1.0) Features TBCU Store up to 150 routes with 150 stops in each route GPS GPS location synchronization Synchronized Audio and Visual information inside bus Multi Lingual display with display intensity control User friendly software to download / modify /
Slide 44: Electronification & Regulatory Solutions
Electronification & Regulatory Solutions 44
Slide 45: Commercial Vehicles : Regulatory Driven Solutions
Commercial Vehicles : Regulatory Driven Solutions Intelligent Transportation System [ITS] Fire Detection & Alarm System [FDAS] TBCU GP S AIS-135 standard AIS-140 standard Reverse Parking & driver assistance systems AIS-145 standard RFQ’s received from OEM’s Spark Minda is working to deploy v
Slide 46: Two Wheeler : Electronification Solutions
Two Wheeler : Electronification Solutions Instrument Cluster Smart Key with ESCL Body Control Module Answer Back System BT based Navigation device Content per 2w : Integrated Starter Generator System Immobilizer ~ INR 7000 Development in progress Ready to engage with OEM 46
Slide 47: Tractor : Electronification Solutions
Tractor : Electronification Solutions Digital RSAS EHPTO Clusters Blue-eye Flasher Safety Controller Various Sensors • Hitch Level • • EGT (BS-VI) Fuel level (BS-VI) Content per BCM VCU • Ambient Air Temperature vehicle (BS-VI) INR 10,400 Development in progress Ready to
Slide 48: Passenger Cars : Electronification Solutions
Passenger Cars : Electronification Solutions Instrument Cluster ESCL Body Control Module RPAS iRIS 1.5 / 2.0 Content per vehicle ~ INR 6,500 Immobilizer Development in progress Ready to engage with OEM 48
Slide 49: Executive Summary
Executive Summary 1 Spark Minda is equipped to provide end-to-end system solutions 2 Identify the opp. in EV and Connected Mobility and be the front runner 3 Focus on localization in specific components to bring the value 4 “CASE” is seen as a driver towards the future of the mobility Improvising on
Slide 50: Transform and Rise
“Transform and Rise” Mechanical Automotive Mechatronics
Slide 51: Thank You
Thank You 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 Minda Corporation Limited (“Minda Corp” or the Company) future business de