Cie Automotive India Ltd · NSE:CIEINDIA
Cie Automotive India — Mahindra CIE Automotive — H1 2020 Earnings Presentation
40 slides from Cie Automotive India's earnings presentation, Jul 21, 2020
Slide 1: Cover letter to stock exchanges
Mahindra CIE Automotive Ltd Mahindra Towers, 1st Floor, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018, India Tel: +91 22 24931449 Fax: +91 22 24915890 www.mahindracie.com mcie.investors@ cie-india.com July 21, 2020 BSE Limited National Stock Exchange of India Limited Corporate Relationship Departmen
Slide 2: Q2 and Half Year CY20 Results
Q2 and Half Year CY20 Results 21st July 2020 │ Mumbai 1
Slide 3: Disclaimer
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 prospectus
Slide 4: MCIE Overview
MCIE OVERVIEW LEGAL STRUCTURE CIE through its subsidiaries 58.02% 3
Slide 5: MCIE India Q CY Results
MCIE INDIA Q 2 C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Apr-Jun Change Apr-Jun Jan-Mar Apr-Jun 2020 Apr-Jun 2020 2020 2019 2020 (**) v/s Apr-Jun 2019 v/s Jan-Mar 2020 SALES 2,523 -73% 9,179 7,440 Pass Cars# -84.0% -83.8% LCV# -84.6% -79.3% EBITDA (*) -324 -127%
Slide 6: MCIE Europe Q CY Results
MCIE EUROPE Q 2 C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Apr-Jun Change Apr-Jun Jan-Mar 2020 2019 2020 Source: IHS Global SALES 4,590 -59% 11,316 8,593 Apr-Jun 2020 Apr-Jun 2020 EBITDA (*) -461 -131% 1,480 901 v/s Apr-Jun 2019 v/s Jan-Mar 2020 Light Vehicles -63
Slide 7: MCIE Consolidated Q CY Results
MCIE CONSOLIDATED Q 2 C Y 2 0 2 0 R E S U LT S (INR Mio) Apr-Jun 2020 Change Apr-Jun 2019 Jan-Mar 2020 (**) SALES 7,113 -65% 20,495 16,034 EBITDA (*) -785 -129% 2,694 1,871 EBITDA% -11.0% 13.1% 11.7% EBIT (*) -1,303 -170% 1,850 1,056 EBIT % -18.3% 9.0% 6.6% EBT -1,470 -185% 1,735 873 EBT% -20.7% 8.5
Slide 8: MCIE India Half Year CY Results
MCIE INDIA H A L F Y E A R C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Jan-Jun 2020 Change Jan-Jun 2019 Jan-Jun 2020 v/s Jan-Jun 2019 SALES 9,963 -41% 17,019 Pass Cars# -48.1% Source: SIAM LCV# -59.9% EBITDA (*) 647 -74% 2,510 <6T# -49.9% EBITDA% 6.5% 14.7% Two Whe
Slide 9: MCIE Europe Half Year CY Results
MCIE EUROPE H A L F Y E A R C Y 2 0 2 0 R E S U LT S Financial Update Market Update (Production) (INR Mio) Jan-Jun 2020 Change Jan-Jun 2019 Jan-Jun 2020 Source: IHS Global SALES 13,184 -45% 24,160 v/s EBITDA (*) 439 -86% -3,157 Jan-Jun 2019 EBITDA% 3.3% 13.1% Passenger Vehicles -40.5% EBIT (*) -154
Slide 10: MCIE Consolidated Half Year CY Results
MCIE CONSOLIDATED H A L F Y E A R C Y 2 0 2 0 R E S U LT S (INR Mio) Jan-Jun 2020 Change Jan-Jun 2019 SALES 23,147 -44% 41,179 EBITDA (*) 1,086 -81% 5,668 EBITDA% 4.7% 13.8% EBIT (*) -247 -106% 4,084 EBIT % -1.1% 9.9% EBT -596 -115% 3,865 EBT% -2.6% 9.4% (*) EBITDA: Net Operating Income + Depreciati
Slide 11: Other Details
OTHER DETAILS OTHER OPERATING REVENUE, OTHER INCOME AND EXCHANGE RATES For Q2 CY20 For Half Year CY20 (INR Mio) India Europe Consolidated India Europe Consolidated Other Operating Revenue 127 114 241 506 329 835 Other Income 150 30 180 185 43 228 Exchange Rates Period INR/ Euro Average for Q2 CY20 8
Slide 12: MCIE Consolidated Half Year Results Balance Sheet
MCIE CONSOLIDATED C Y 2 0 H A L F Y E A R R E S U LT S B A L A N C E S H E E T Million Rupees 30/06/2020 31/12/2019 Fixed Assets 65,367 61,008 Net Working Capital -181 1,087 Total Net Assets 65,186 62,095 Equity 46,351 46,338 Net Financial Debt (*) 14,541 11,488 Others (Net) (#) 4,294 4,268 Total Eq
Slide 13: MCIE Consolidated - Cash Flow and NFD
MCIE CONSOLIDATED - CASH FLOW AND NFD CY20 AS ON 30 JUN 2020 (Mn INR) MCIE EBITDA 1,086 Financial (349) Maintenance CAPEX (810) Tax Payment (55) OPERATING CASH FLOW (128) % EBITDA -12% Growing Capex (535) Working Capital Variation 1,268 INDAS16 Debt Impact (2,524) Others (1,133) FINANCIAL CASH FLOW
Slide 14: MCIE Strategy: Tactics Towards Profitability
MCIE STRATEGY TA C T I C S T O WA R D S P R O F I TA B I L I T Y Use the downturn as an opportunity for achieving CIE’S MODEL OF MANUFACTURING EXCELLENCE through productivity improvement • Short Term (3-6 Months) – Cost reductions, Profitability Improvements, restructuring at Metalcastello and MFE •
Slide 15: Market and Forecasts
VW) _ < O LJ c O Li. OQ = <x _ LJ = c < = Mahindra cle 14 G CIE Avtomotive
Slide 16: India Market: Key Segments Update - Quarterly
INDIA MARKET: KEY SEGMENTS UPDATE - QUARTERLY D E M A N D U N C E R TA I N Market - Production Numbers Cars+UV’s+Vans <6T Vehicles** Two Wheelers Period Units Δ% Units Δ% Units Δ% H1 CY20 981,198# -48.1# 1,111,162# -49.9# 22,062,013 -49.8 Q2 CY20 136,797# -84.0# 159,067# -84.1# 4,998,023 -78.5 Q1 CY
Slide 17: Market Outlook - India
MARKET OUTLOOK - INDIA • Passenger Vehicles ₋ Light Vehicles (less than 6 Tons – European Classification) Short Term: IHS forecasts production growth at a –35.4% between CY2019-CY 2020 Long term: IHS forecasts production growth at a CAGR of 11.6% over a period of 2020-2025 “CRISIL Research expects d
Slide 18: Europe Market Update - Quarterly
EUROPE MARKET UPDATE - QUARTERLY MARKET SLIDING Market - Production Numbers - Light Vehicles Period Mn Units Δ% Half Year CY 2020 6.64 -40.5 Q2 CY 2020 2.04 -63.1 Q1 CY 2020 4.59 -18.1 Source: IHS Global *Δ% Change means comparison of Quarter volumes of this financial year with that of the same quar
Slide 19: Market Outlook - Europe
MARKET OUTLOOK - EUROPE • EU – Light Vehicles: ‒ IHS Global has forecasted that the Passenger Vehicle production will decline in CY20 by 25% as compared to CY19 ‒ But will grow at a strong pace of 5.3% CAGR between C20 to C25 • EU – MHCV’s: ‒ IHS Global has forecasted* that the Europe (Western + Eas
Slide 20: Annexure - SEBI Results
ANNEXURE - SEBI RESULTS . . ® ee.
Slide 21: Statement of Profit & Loss Account - Standalone
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 - S TA N D A L O N E Rs. In Million STANDALONE Quarter Ended Six Months Ended Year Ended Particulars June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audited Un Audited Un Audit
Slide 22: Statement of Profit & Loss Account - Standalone (cont'd)
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 - S TA N D A L O N E C O N T ’ D . . Rs. In M illion STANDALONE Quarter Ended Six M onths Ended Year Ended Particulars June 30, 2020 M arch 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audited
Slide 23: Statement of Assets & Liabilities - Standalone
S TAT E M E N T O F A S S E T S & L I A B I L I T I E S - S TA N D A L O N E Rs. Million STANDALONE Particulars As at June As at December 30,2020 31,2019 Un Audited Audited A ASSETS 1 Non-current assets a) Property, Plant and Equipment 10,468 9,953 b) Capital work-in-progress 602 384 c) Goodwill 10,
Slide 24: Statement of Assets & Liabilities - Standalone (cont'd)
S TAT E M E N T O F A S S E T S & L I A B I L I T I E S - S TA N D A L O N E C O N T ’ D . . Rs. Million STANDALONE Particulars As at June As at December 30,2020 31,2019 Un Audited Audited B EQUITY AND LIABILITIES 1 Equity a) Equity Share capital 3,790 3,790 b) Other Equity i) Share premium 15,285 1
Slide 25: Cash Flow - Standalone
C A S H F L O W - S TA N D A L O N E Amount in Mio - - Particulars Six month Ended Year ended 30 June 2020 31 December 2019 Cash flows from operating activities Profit before tax (177) 2,636 Adjustments for: Finance costs recognised in profit or loss 45 136 Interest income recognised in Profit or Lo
Slide 26: Cash Flow - Standalone (cont'd)
C A S H F L O W - S TA N D A L O N E C O N T ’ D … Amount in Mio - - Particulars Six month Ended Year ended 30 June 2020 31 December 2019 I Net cash generated from operating activities 2,117 3,969 Cash flows from investing activities (Purchase) / Sale of current Investments (1,162) 5,956 Interest re
Slide 27: Statement of Profit & Loss Account - Consolidated
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 S O L I D AT E D Rs. in Million Consolidated Quarter Ended Six Months Ended Year Ended Particulars June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audited Un Audited Un
Slide 28: Statement of Profit & Loss Account - Consolidated (cont'd)
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 S O L I D AT E D C O N T ’ D . Rs. in M illion Consolidated Quarter Ended Six M onths Ended Year Ended Particulars June 30, 2020 M arch 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audi
Slide 29: Statement of Profit & Loss Account - Consolidated (cont'd)
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 S O L I D AT E D C O N T ’ D . . Rs. in Million Consolidated Quarter Ended Six Months Ended Year Ended Particulars June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audit
Slide 30: Statement of Assets & Liabilities - Consolidated
S TAT E M E N T O F A S S E T S & L I A B I L I T I E S - C O N S O L I D AT E D Rs. in Million CONSOLIDATED Particulars As at June As at December 30,2020 31,2019 Un Audited Audited A ASSETS 1 Non-current assets a) Property, Plant and Equipment 28,073 24,862 b) Capital work-in-progress 655 542 c) Go
Slide 31: Statement of Assets & Liabilities - Consolidated (cont'd)
S TAT E M E N T O F A S S E T S & L I A B I L I T I E S - C O N S O L I D AT E D C O N T ’ D . . Rs. i n Mi l l i on CONSOLIDATED Particulars As at June As at December 30,2020 31,2019 Un Audited Audited B EQUITY AND LIABILITIES 1 Equity a) Equity Share capital 3,790 3,790 b) Other Equity i) Share pr
Slide 32: Cash Flow - Consolidated
C A S H F L O W - C O N S O L I D AT E D Amount in Million - - Particulars Six Month Ended Year Ended 30 June 2020 31 December 2019 Cash flows from operating activities Profit/ (Loss) before tax (596) 6,279 Adjustments for: Finance costs recognised in profit or loss 350 525 Interest income recognise
Slide 33: Cash Flow - Consolidated (cont'd)
C A S H F L O W - C O N S O L I D AT E D C O N T ’ D … Amount in Million - - Particulars Six Month Ended Year Ended 30 June 2020 31 December 2019 I Net cash generated by operating activities 2,316 10,274 Cash flows from investing activities (Purchase) / Sale of Investment (1,156) 5,911 Net gain on s
Slide 34: Segment Revenue Results
S E G M E N T R E V E N U E R E S U LT S Rs. in Million CONSOLIDATED Quarter Ended Six Months Ended Year Ended June 30, 2020 M arch 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audited Un Audited Un Audited Audited Particulars (Refer Note 5) (Refer No
Slide 35: Segment Revenue Results (cont'd)
S E G M E N T R E V E N U E R E S U LT S C O N T ’ D … Rs. in Million CONSOLIDATED Quarter Ended Six Months Ended Year Ended June 30, 2020 M arch 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 December 31, 2019 Un Audited Un Audited Un Audited Un Audited Un Audited Audited Particulars (Refer Not
Slide 36: Notes
NOTES 1 The statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable. 2 In September 2018, the Board of Direc
Slide 37: Notes (cont'd)
NOTES CONT’D… 6 Pursuant to receipt of eligibility certificate under Maharashtra Government Package Scheme of Incentives (PSI) 2013 by the Company's subsidiary, Aurangabad Electrical Limited (AEL), the Group has recognised grant income of ₹ 122 million for the quarter and six months ended June 30, 2
Slide 38: Notes (cont'd)
NOTES CONT’D… 8 During the year 2019, Bill Forge Private Limited was amalgamated with the Company with an appointed date of April 1, 2018 under a Scheme of Amalgamation approved by the Hon'ble NCLT Mumbai vide order dated November 4, 2019 and effective date November 15, 2019 (being the date of filin
Slide 39: Annexure A - Subsidiaries and Associate Companies
NOTES CONT’D… Annexure A - Subsidiaries forming part of the M ahindra CIE Automotive Limited (M CIE) Group and its Associate Companies S. No. Name of the entity Relationship % of Holding Country of Incorporation June 30, 2020 1 Stokes Group Limited (SGL) Subsidiary of M CIE 100% UK 2 Stokes Forgings
Slide 40: Mahindra CIE
Mahindra ClE
Mahindra CIE Automotive — H1 2020 Earnings Presentation on 6ix