Cie Automotive India Ltd · NSE:CIEINDIA
Cie Automotive India — Mahindra CIE Automotive — FY2018 Earnings Presentation
35 slides from Cie Automotive India's earnings presentation, Feb 20, 2019
Slide 1: Cover letter to stock exchanges
mahindra C I E Mahindra CIE Automotive ~ t d Mahlndm Towers, I*Floor. Dr. G M Bhosale Marg. Work, Mumba~400 018, India Tel +91 22 24901441 Fax +91 22 24915890 20a February, 2019 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Corporate Relationship Department,
Slide 2: Investor Presentation Full Year CY18 Results
Investor Presentation Full Year CY18 Results Mahindra CIE Automotive Limited 20th February 2019 │ Mumbai 1
Slide 3: Disclaimer
Mahindra ClE Disclaimer Mahindra CIE Automotive Limited, herein referred to as MCAL provides a wide array of presentations and reports, with the contributions of various professionals. These presentations and reports are for informational purposes and private circulation only and do not constitute a
Slide 4: MCIE Overview
MCIE Overview Legal Structure MVML (M&M Subsidiary) and CIE through it’s subsidiaries Promoter Group 11.44% 56.28% 3
Slide 5: Key Highlights
Key Highlights CY 2018 Business • Legal Structure Simplification: • MFE becomes subsidiary of Galfor • Bill Forge to be merged into MCIE later this year • Bill Forge Mexico Fully new 2000T robotized line validated for new programs • New plant • Composites Pimpri plant shifted to new plant in Kanhe •
Slide 6: MCIE India Q4 C18 results
MCIE India Q4 C18 results Financial Update Market Update (Production) (INR Mio) Oct -Dec Change Oct -Dec July-Sep Oct-Dec 2018 Oct-Dec 2018 2018 2017 2018 v/s v/s Oct-Dec 2017 Jul-Sep 2018 Sales 7,627 +15% 6,661 8,153 (without Excise) PV -9.4% -19.5% EBITDA (*) 1,134 +37% 829 1,240 UV -13.1% -15.0%
Slide 7: MCIE Europe Q4 C18 results
MCIE Europe Q4 C18 results Financial Update Market Update (INR Mio) Oct -Dec Change Oct -Dec July-Sep (Production) 2018 2017 2018 Sales 11,199 +19% 9,381 11,263 (without Excise) EBITDA (*) 1,613 +6% 1,523 1,369 Oct-Dec 2018 Oct -Dec 2018 v/s v/s EBITDA% 14.4% 16.2% 12.2% Oct-Dec 2017 July-Sep 2018 P
Slide 8: MCIE Consolidated Q4 C18 results
MCIE Consolidated Q4 C18 results (INR Mio) Oct -Dec 2018 Change Oct -Dec 2017(**) July-Sep 2018 Sales 18,733 +17% 15,977 19,326 (without Excise) EBITDA (*) 2, 747 +17% 2,354 2,610 EBITDA% 14.7% 14.7 % 13.5% EBIT (*) 2,010 +27% 1,586 1,918 EBIT % 10.7% 9.9% 9.9% EBT 1,819 +31% 1,390 1,856 EBT% 9.7% 8
Slide 9: MCIE India CY18 Full Year Results
MCIE India CY18 Full Year Results Financial Update Market Update (Production) (INR Mio) Calendar Year Change Calendar Year Calendar Year 2018 v/s Calendar Year 2017 2018 2017 PV 0.1% Sales 31,561 +21% 26,072 (without Excise) UV 0.9% EBITDA (*) 4,805 +38% 3,478 LCV 31.5% EBITDA% 15.2% 13.3% EBIT (*)
Slide 10: MCIE Europe CY18 Full Year Results
MCIE Europe CY18 Full Year Results Financial Update Market Update (INR Mio) Calendar Change Calendar Year (Production) Year 2018 2017 (**) Sales(without 45,284 +26% 35,867 Calendar Year 2018 Excise) v/s EBITDA (*) 6,092 +22% 4,991 Calendar Year 2017 EBITDA% 13.5% 13.9% Passenger Vehicles -2.0% EBIT
Slide 11: MCIE Consolidated CY18 Full Year Results
MCIE Consolidated CY18 Full Year Results (INR Mio) CY 2018 Change CY 2017 Sales (without Excise) 76,486 +24% 61,651 EBITDA (*) 10,897 +29% 8,428 EBITDA% 14.2% 13.7% EBIT (*) 8,030 +42% 5,670 EBIT % 10.5% 9.2% EBT 7,528 +46% 5,150 EBT% 9.8% 8.4% PAT from Continued Operations 5,485 +49% 3, 667 % PAT C
Slide 12: Other Details
Other Details Other operating Revenue, Other Income and Exchange rates For Q4 CY18 For CY18 (INR Mio) India Europe Consolidated India Europe Consolidated Other Operating Revenue 585 420 1,005 2,324 1,506 3,830 Other Income 88 35 143 167 220 387 Exchange Rates Period INR/ Euro Average for CY 18 80.72
Slide 13: MCIE Consolidated Balance Sheet
MCIE Consolidated CY18 Full Year Results Balance Sheet Million Rupees 31/12/2018 31/12/2017 Fixed Assets 50,014 48,111 Net Working Capital 949 (1,041) Total Net Assets 50,962 47,070 Equity 42,891 37,156 Net Financial Debt (*) 7,255 9,029 Others (Net) 816 885 Total Equity and Liabilities 50,962 47,07
Slide 14: MCIE Consolidated - Cash Flow and NFD
MCIE Consolidated - Cash Flow and NFD CY18 as on 31 Dec 2018 (Mn INR) MCIE EBITDA 10,897 Financials and Fx gain/loses (502) Main India investments: (1536 Mio) : Stampings Maintenance CAPEX (1,812) new plant + Gears capacity increase + BF Tax Payment (1,337) Mexico Nexteer line + BF India capacity
Slide 15: MCIE Consolidated Key Ratios
MCIE Consolidated Key Ratios RATIO CY 2018 CY 2017 CY 2016 EBIT%(1) 10.5% 9.2% 6.3% RONA(2) 15.8% 11.9% 9.0% Operative Cash Flow(3) /EBITDA 66% 44% 46% NFD/Equity 0.17x 0.24x 0.3x NFD/EBITD(4) 0.67x 1.1x 1.6x ROE 11.6% 9.6% 5.2% ROE Continuos Operations 12.8% (1) The EBIT for CY 2017 numbers are exc
Slide 16: Quarterly Evolution
Quarterly Evolution Revenue EBITDA % 21000 18 19731 19107 19326 19000 16.2 18733 15.7 16 15.1 15.2 14.7 14.7 14.9 14.7 17000 14.4 14.4 14.4 15903 14.2 15212 16184 13.8 13.8 14 13.5 13.5 13.2 13.2 15000 15248 12.712.812.8 12.5 12.8 12.2 13300 11.8 13000 12 12650 11816 10.9 11416 11263 10.2 11000 1119
Slide 17: Stock Evolution
Stock Evolution Indexed from 1st January 2015 MCIE Share Price (INR) Returns over the period Period High Low MCIE Nifty 50 index Nifty Auto Index 6 Month (1st July – 31st Dec 2018) 302 223.35 -0.1% 1.4% -13.8% 12 Month (1st Jan – 31st Dec 2018) 302 200 -0.4% 3.2% -23.1% 2 Years (1st Jan 2017 – 31st
Slide 18: Mahindra CIE: Technology wise
Mahindra CIE : Technology wise CY2018 Result Consolidated Magnetics, Composites India Magnetics, 1% Composites, 4% , 3% 1% Gears, 7% Castings, 7% Top Customers: M&M, Maruti, Tata Castings, Forgings, 43% Top 3 = 47% Gears, 10% 16% Stampings, Stampings, 11% 27% Forgings, 70% Europe Gears, 12% Top Cust
Slide 19: MCIE Consolidated Strategy
MCIE Consolidated Strategy MCIE has followed a strategy focused on pursuing operational excellence and customer diversification to drive profitability improvement. This is achieved by focusing on improving productivity and maximizing returns on incremental capex through debottlenecking and smart aut
Slide 20: Synergy Case Studies
Synergy Case Studies Adopting the CIE model of manufacturing excellence Synergy Case Study 1: Stampings Synergy Case Study 2: Forgings Synergy Case Study 3: Foundry Division, Kanhe is in the process of Division, Chakan: This year, in Division, Urse: Objective was to setting up a greenfield plant for
Slide 21: Annexure 1: Standalone and Subsidiaries - Results Declared to SEBI
Annexure 1: - Standalone and Subsidiaries - Results Declared to SEBI 20
Slide 22: Statement of Profit & Loss Accounts
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S STATEMENT OF STANDALONE AND CONSOLIDATED AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2018. Rs.in Millon STANDALONE CONSOLIDATED Quarter Ended Year Ended Year Ended December 31, 2018 December 31, 2017 September 30, 2018 Decembe
Slide 23: Statement of Profit & Loss Accounts (cont.)
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S . . C O N T Rs.in Millon STANDALONE CONSOLIDATED Quarter Ended Year Ended Year Ended December 31, 2018 December 31, 2017 September 30, 2018 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (Refer Note 6) (Refer Note 6)
Slide 24: Statement of Profit & Loss Accounts (cont.)
S TAT E M E N T O F P R O F I T & L O S S A C C O U N T S . . C O N T. Rs.in Millon STANDALONE CONSOLIDATED Quarter Ended Year Ended Year Ended December 31, 2018 December 31, 2017 September 30, 2018 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (Refer Note 6) (Refer Note 6)
Slide 25: MCIE SEBI Result: Statement of Assets & Liabilities
M C I E S E B I R E S U LT Statement of Assets & Liabilities Rs. In Million STANDALONE CONSOLIDATED Particulars As at December As at December As at December As at December 31,2018 31,2017 31,2018 31,2017 Audited Audited Audited Audited A ASSETS 1 Non-current assets a) Property, Plant and Equipment 5
Slide 26: MCIE SEBI Result: Equity and Liabilities
M C I E S E B I R E S U LT Statement of Assets & Liabilities Rs. In Million STANDALONE CONSOLIDATED Particulars As at December As at December As at December As at December 31,2018 31,2017 31,2018 31,2017 Audited Audited Audited Audited B EQUITY AND LIABILITIES 1 Equity a) Equity Share capital 3,788
Slide 27: Segment wise Revenue, Results, Assets & Liabilities
M C I E S E B I R E S U LT Segment wise Revenue, Results, Assets & Liabilities Rs. In Million CONSOLIDATED Year Ended Year Ended Particulars 31-Dec-18 31-Dec-17 Audited Audited 1 Segment Revenue a) India 33,886 28,948 b) Europe 46,789 37,030 Total 80,674 65,978 Less: Inter Segment Revenue 360 269 Ne
Slide 28: MCIE SEBI Result Notes
M C I E S E B I R E S U LT N O T E S Notes: 1 The statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (IndAS) prescribed under Section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable. 2
Slide 29: MCIE SEBI Result Notes (cont.)
M C I E S E B I R E S U LT N O T E S . . C O N T 5 Exceptional Items relating to current year: a. Provision for impairment on additional investment in Stokes Group Limited, wholly owned subsidiary of Company, amounting to ₹ 1,161 M illion, to facilitate closure of business. Company does not anticipa
Slide 30: Annexure 2: Market Overview and Outlook
Annexure 2: Market Overview and Outlook 29
Slide 31: India Market: Key Segments Update - Quarterly
India Market: Key Segments Update - Quarterly Demand Stable Market - Production Numbers Cars+ UV’s+ Vans CV’s Tractors Two Wheelers Period Units Δ% Units Δ% Units Δ% Units Δ% C18 4,312,936 1.5 1,106,818 33.7 754,815 19.0 25,083,553 14.8 Q4 C18 1,135,583 -10.1 255,819 12.7 219,956 16.1 5,757,147 9.6
Slide 32: Market Outlook - India
Market Outlook - India • PVs+ UVs: “Domestic passenger vehicle sales for Fiscal 2020 is expected to grow at a higher pace of 9-11%. CRISIL Research projects domestic car and utility vehicle sales to zoom at a compound annual growth rate (CAGR) of 7-9% from fiscal 2018 to 2023, vis-a-vis 4% CAGR seen
Slide 33: Europe Market Update - Quarterly
Europe Market Update - Quarterly Stable Growth Market - Production Numbers Passenger Vehicles (Mio Units) Commercial Vehicles Period C18 Δ% Period C18 Δ% C18 18.48 -2.0% C18 512,630 -0.2% Q4 4.50 -5.4% Q4 128,633 -11% Q3 3.86 -7.3% Q3 121,827 1.1% Q2 5.10 4.8% Q2 130,466 -0.3% Q1 5.03 -0.7% Q1 131,7
Slide 34: Market Outlook - Europe
Market Outlook - Europe Incremental Growth • EU – Cars: ‒ IHS Global has forecasted that the Passenger Vehicle production will grow at a slow but steady pace of 0.54% CAGR from Calendar Year 2018 to Calendar Year 2023 • EU - CVs: ‒ IHS Global has forecasted that the Medium and Heavy Commercial Vehic
Slide 35: Thank you
Thank you — Mahindra
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