Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Investor Presentation (September 2024)
45 slides from Samvardhana Motherson International's investor presentation, September 2024
Slide 1: Motherson. Global Engineering and Manufacturing Specialist
Motherson. Global Engineering and Manufacturing Specialist
Slide 2: Our story and where we are today
01 Our story and Where we are today. 2
Slide 3: Our first wiring harness order
1983 Our first wiring harness order. Manufactured t-coupler for Maruti 800 ONE Component Country Customer 3
Slide 4: Motherson Group today
Motherson Among the Top 15 automotive Group today. Suppliers2 USD 17.2 Bn1 FY 24 Gross Consideration 4 Presence across 44 countries 45 Acquisitions across industries 27 Strategic Partnerships 1. Gross amount of consideration includes revenue from operations,100% revenue of joint ventures and associa
Slide 5: Global Engineering and Manufacturing Powerhouse
Global Engineering and Manufacturing Powerhouse. Globally • Strategically located across Component Local customer locations Design Expertise spanning Sustainability Operating Prototyping • 358 operational units the entire 400 • 33 technical centers facilities1 • 9 rep offices engineering and manufac
Slide 6: Our track record of returns to shareholders
Our track Efficient management of record of capital; raised only INR 28.1 Bn returns to in Equity Capital since listing shareholders 6,295x* since listing Investment done in 1993. at IPO has become 6,295 times IPO 1993 2024 Calculation of returns is based on the following • For 2024, closing share p
Slide 7: Recognition of our efforts
Recognition of our efforts. 300+ awards since 2020-21 Award categories Awards from Best Supplier, leading automotive and Quality, Cost, Design Non-automotive Delivery, Management, customers Safety, Environment, Sustainability, Laksh Vaaman Sehgal accepting King’s Award Innovation etc. for Innovation
Slide 8: Chairman inducted to the Automotive Hall of Fame
Our Chairman Vivek Chaand Sehgal inducted to the Automotive Hall of Fame as a testament of customer trust in Motherson. 8
Slide 9: Ready for the next phase of growth
02 Ready for the next phase of growth. 9
Slide 10: Stable and strong engineering and manufacturing platform, ready to leapfrog
Stable and strong engineering and manufacturing platform, Ready to leapfrog. Diversified Leveraging business with Well Positioned capabilities technological automotive in new expertise business industries Manufacturing Uniquely DNA and Strong positioned in operational management India prowess a key
Slide 11: Diversified business with technological expertise
02.1 Diversified business with technological expertise. 11
Slide 12: Highly diversified business with a marquee customer base
Highly diversified business with a marquee customer base. Component wise. Customer wise. Country wise. (top 20 customers) Mercedes Benz 11% India 21% Wiring Harness 28% Audi 9% Volkswagen 9% USA 18% Vision Systems 17% Maruti Suzuki 6% Germany 18% Bumpers* 13% BMW 5% Porsche 4% China 11% Engineering*
Slide 13: Evolved as a technology partner for customers
Evolved as a technology Highest partner for customers. Integrated Nimble and content Assembly adaptive to division and customer customer already tier 0.5 stickiness requirements Key product categories currently here Over 2,800+ Patents1 With entry into Tier 0.5 business, large Key opportunity exists
Slide 14: Well positioned automotive business
02.2 Well positioned automotive business. 14
Slide 15: Strong visibility of automotive future revenues
Strong visibility of automotive future revenues. 83.9 23% +6.6 billion USD from EV. billion USD (Excluding Yachiyo) 77.3 +8.2 billion USD billion USD Large part of 69.1 automotive billion USD booked business expected to be realized over 5-6 years SAMIL automotive 31-Mar-23 NetIncrease Net Increase4
Slide 16: Well-positioned for growth over market
Revenue* (INR Mn) Well- Organic Business 986,917 108,736 positioned for Revenues from assets acquired during FY 2023 and CAGR FY 2024 growth over Organic Business +17.3% market. 878,181 637,740 Estimated Automotive megatrends of growth over SUVisation, Premiumization market of 8-10%** and shift to c
Slide 17: More than 95% product portfolio is power-train agnostic
ICE More than 95% product portfolio is Hybrid Power-train Agnostic Electric 17 17
Slide 18: Well positioned in the automotive supply chain
Well positioned in the automotive supply chain. Motherson is both a Tier 1 and Tier 0.5 supplier Tier-1 Tier 0.5 High level of Potential Manufacturing of Integration of collaboration insourcing for Components and components and enhances customer’s assembled products assembly of systems dependence mo
Slide 19: Leveraging capabilities in new industries
02.3 Leveraging capabilities in new industries. 19
Slide 20: Motherson Playbook: follow our customers
Motherson Playbook A tried and tested formula “Follow our customers”. Entry into new industries leveraging existing strengths of Motherson Customer Start in Consolidate 01 02 03 guided country of Creating to Lead strength value for customers Following a Leveraging Go Global and customer centric capa
Slide 21: First partnership in India for Aerospace business (CIM Tools)
The 1st partnership in India for Aerospace business (CIM Tools). Significant organic growth While setting the stage for future growth Revenue (INR Mn) Investments made to • Building capabilities in sheet metal and tubes and CAGR accelerate pipes 38.3% business growth • Adding surface treatment proce
Slide 22: Aerospace business ready to take off
Aerospace business Capabilities ready to from Head to Tail of an aircraft, supplying to marquee take off. customers Materials Aerostructures Systems Propulsion Cabin parts Incubated business Long & Short Bed - Hard Metal Machined parts in India Long & Short Bed – Soft Metal Machined parts Metallic A
Slide 23: With benefits of a competitive size and scale
..With benefits of a competitive size and scale. Footprint of Aerospace Business Combined Revenues (INR Mn) Combined revenue base of France USD 200+ Mn 08 facilities India Diversified 2 New global footprint 05 facilities with Greenfields 16 manufacturing being set up in India 14,099 facilities 17,33
Slide 24: Adopting same playbook in Consumer Electronics business
Adopting same playbook in the Consumer Electronics business. India Paving the way1 Partnership with BIEL Crystal INR 26,000 Mn initial investment spread over a certain period SAMIL has track 02nd 1 Bn record of creating Largest mobile Target for mobile Over 130,0002 value for all manufacturer in han
Slide 25: And in Health and Medical business
…and in Health and Medical business. Strategic partnership : Irillic, India First dedicated greenfield facility Imaging systems Leveraging (Fluorescence Imaging existing and 4K Laparoscopy) capabilities of Motherson Manufacturing capabilities Improve cost efficiencies and faster scale-up Setup in Ch
Slide 26: Uniquely positioned in India
02.4 Uniquely positioned in India. 26
Slide 27: India on the cusp of becoming a globally preferred manufacturing destination
India on the cusp of Motherson has deep roots in India. becoming a Motherson’s Capabilities Full spectrum of engineering and 150+ Facilities2 In close proximity to globally preferred manufacturing capabilities available customers manufacturing Human Capital 98,000+ associates1 Land Acreage ~675 acre
Slide 28: Manufacturing DNA and operational prowess
02.5 Manufacturing DNA and operational prowess. 28
Slide 29: Clear focus on the fundamentals of Engineering & Manufacturing
Clear focus on the fundamentals of Engineering & Manufacturing. Quality Cost Design Delivery Deliver globally and be Seamlessly fits global quality standards of the customer. Work at optimising cost levels. Provide design support for current products and new concepts. able to follow the customers wh
Slide 30: Focus on each unit, supported by Root Cause Analysis
Focus on each unit, 75% of Red units as of March 31, 2020 converted to Green and Yellow supported by Root Cause Analysis. 40 Red 24 Green Units Units A structured turnaround approach 6 Yellow Units Classify units in Red, Yellow and Green Identify root cause(s) of underperformance FY20 FY24 Turnaroun
Slide 31: Committing to mid-term Target 2030 on road to Carbon Net Zero
Committing to mid-term Target 2030 on road to Carbon Net Zero. 50 % Carbon Reduction in emissions Net Zero 2023 2030* 2040 Note: 31 Sustainability mid-term target based on scope 1 and 2, With baseline of FY 2022-23 reporting and assuming economically viable access to sufficient clean and renewable e
Slide 32: CMMI level 5 certified in-house IT capabilities
CMMI level 5* certified in- house IT capabilities. IT business division serving both Internal and External customers Provides operational benefits Scalability Operational Efficiency Effective Decision Cyber Security Back-bone of our Standardized “plug and play” Streamlined Making Management and oper
Slide 33: Foraying into Manufacturing as a Service (MaaS)
Foraying into Manufacturing as a A tech driven digital platform connecting Access to global manufacturing and Service (MaaS). global manufacturers to reliable suppliers. supplier base with opportunities to insource. 140+ In discussion ..across 20 external with 3,300+ different customers Suppliers..
Slide 34: Strong management structure and capabilities a key enabler
02.6 Strong management structure and capabilities a key enabler. 34
Slide 35: Our management and structure are synergistic forces
Our Management and structure are synergistic forces driving our diversity towards a common objective 35 35
Slide 36: Decentralized management structure enables quick response
Decentralized management structure enables quick response to opportunities. Professional management Strong professional Regional Chairman’s management team, with Business Divisions Global Functions Office (RCO) extensive automotive industry experience 1. 5 RCOs (COA, COE, COSA, 1. Each business is 1
Slide 37: Enabled successful integration of 45 acquisitions
Enabled successful integration of 45 2021 - 2024 2016 - 2020 acquisitions. 25 Plast Met 33 Fritzmeier Motherson 41 Samvardhana Motherson Turkey Cabin Engineering Pvt Ltd Adsys Tech Ltd. (Plastic moulded parts India (Cabins for off- India (Electric Wiring & & tooling) highway vehicles) Interconnect S
Slide 38: And created a strong platform delivering sustainable growth
And created a strong platform delivering sustainable growth. 17.8% Revenue (INR Mn) EBITDA (INR Mn) ROCE (%) LTM June 30th , 2024 CAGR CAGR 24.4% 16.9% 38.8% 6.9% 986,917 93,246 637,740 48,393 FY 2022 FY 2024 FY 2022 FY 2024 FY 2022 FY 2024 Note: 1. Refers to revenue and EBITDA from continuing opera
Slide 39: While maintaining a strong balance sheet
While maintaining a strong Evidenced by positive rating balance sheet. actions. Leverage at 1.5x. International ratings Gross and Net Debt1 with Cash & Cash Equivalents and Bank Balance 40,000 2.8 (INR Crores) 35,000 2.1 2.3 2.0 1.9 1.8 30,000 1.7 1.8 SAMIL rating Issue rating SAMIL assigned 25,000
Slide 40: How we will continue to create value for our stakeholders
03 How we will continue to create value for our stakeholders. 40
Slide 41: Strong philosophy and clearly laid out 5 Year Plans
We have a strong philosophy and clearly laid out 5 Year Plans. Purpose Vision Value-creation Leadership Horizon (Why) (What) strategy Mindset (5-year plans.) (How) (Who) Together we aim to continuously delight all “To be who put trust in us and go a globally Operating with after seemingly impossible
Slide 42: Three pillars of growth
Three pillars Listening of growth. to the customer. 03 02 Acquisitions 01 Strategic Organic Alliances growth 42
Slide 43: Value creation wheel
Value creation wheel. Key enabler of 03 04 expansion across industries Customer Asked to trust do more. Automotive Aerospace Health & Medical 02 Return 05 Consistent outstanding on trust Increasing content and Electronic performance Logistics on value per OEM. Manufacturing QCDDMSES.* Services 01 To
Slide 44: Summary
Summary. Creating SAMIL is an Delivering engineering and sustainable Well positioned to leapfrog to the next long-term value manufacturing powerhouse. solutions to customers across phase of growth. for all industries. stakeholders 44
Slide 45: Thank you
Thank you. Safe Harbour The contents of this presentation are for informational purposes only and for the reader’s personal non-commercial use. The contents are intended, but not guaranteed, to be correct, complete, or absolutely accurate. This presentation also contains forward-looking statements b
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