Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Motherson — Debt Investor Presentation (June 2023)
21 slides from Samvardhana Motherson International's debt investor presentation, June 2023
Slide 1: SMRP BV Credit Highlights
SMRP BV Credit Highlights. June, 2023 1 -
Slide 2: Table of contents
Table of contents 1 Motherson Group overview 3-5 2 SMRP-BV credit highlights 6-16 3 Appendix 17-20 2 RESTRICTED
Slide 3: Group Overview
01 Group Overview. 3
Slide 4: Structure simplified with SAMIL as Group holding company
Structure simplified with SAMIL as Group holding company. SMRP-BV becomes a wholly-owned subsidiary of SAMIL Reorganisation Benefits of the reorganisation Pre-reorganisation Enables pursuance of independent strategic priorities for the listed entities SAMIL 33.4% 49.0% Simplifies the group structure
Slide 5: Proud to be part of the most exciting industries
Proud to be part of the most exciting industries. Motherson revenues1. Business divisions2. (in billion EUR) Among the top 25 Emerging automotive businesses suppliers 9.4 worldwide. 7% 7.7 Vision 7.4 Driven by Supports Systems 6.6 over 168,000 customers from Modules & professionals over 300 faciliti
Slide 6: SMRP-BV Credit Highlights
02 SMRP-BV Credit Highlights. 6
Slide 7: Key strengths
Key strengths. 1 2 3 4 5 Resilient financial Diversified and Highly Backed by a performance Disciplined powertrain experienced strong, well through the cycle Capex and agnostic supplier management capitalised underpinned by acquisition with EUR 37 Bn team who have committed parent premium segment st
Slide 8: Resilient financial performance through the cycle
1.0 Resilient financial performance through the cycle. Resilient financial performance despite unfavourable market environment • Sales growth Revenues (EUR Mn)1 Drop in global light vehicle production2 outperformed LV CAGR 3.9% LV production (M units), CAGR (2.6%) market growth • Maintained margins
Slide 9: Continuous deleveraging and strong liquidity
1.0 Continuous deleveraging and strong liquidity. In line with Motherson’s conservative financial policy Total liquidity (EUR Mn) as of March 2023 Net Leverage 699 1Net leverage 800 4.0x ratio as per 579 RCF covenant is 0.54x 114.1 600 3.0x 477 460 Cash and cash equivalents 2.3x 400 2.0x 343.1 EUR 3
Slide 10: Diversified and powertrain agnostic supplier
2.0 Diversified and powertrain agnostic supplier. Sales EUR Revenue diversification (FY 2023) 6.2 Bn Product portfolio 100% power agnostic Modules & Polymers Customer split Geographic split Daimler 18% Germany 26% Audi 15% USA 15% Bumpers Instrumental Door Centre VW 13% Hungary 10% panels panels con
Slide 11: Robust EUR 37 Bn booked business, a reflection of customer trust
2.0 Robust EUR 37 Bn booked business, a reflection of customer trust. Share of Electric Vehicles 29% 37% 39% EUR 17.2 Bn EUR 36.9 Bn EUR 2.8 Bn EUR 19.7 Bn EUR 18.2 Bn (EUR 1.4 Bn) Yet to start product ion SO P H2 New Orders Yet to start product ion Under production Total Booked (Order Book) as on F
Slide 12: Disciplined Capex strategy
3 3.0 Disciplined Capex strategy. Capex cycle concluded • Investment in place to 7.0% 5.6% 4.8% 3.1% 3.4% 3.7% 3.2% support pre-COVID production level 500 100 • Volume growth to aid 94.4 95.1 92.8 improvement in ROCE 83.8 83.5 • Capex spend aligned with 77.4 76.5 volatile market and cash 375 75 conv
Slide 13: Disciplined acquisition strategy
3.0 Disciplined acquisition strategy. Guiding Strategic Customer Robust M&A principles for relevance1 to evaluation framework… better fitment of any potential = driven to achieve multi- x Motherson and path to 40% x Employee engagement fold growth M&A ROCE 1. Leverage 2. Liquidity • Net debt to EBIT
Slide 14: Disciplined acquisition strategy: SAS acquisition case study
3.0 Disciplined acquisition strategy: SAS acquisition case study. In line with Motherson’s conservative financial policy Transaction overview Key financials • SMRP BV to acquire SAS Autosystemtechnik GmbH from Forvia Euro in million CY 2020 CY 2021 CY 2022 • Leading global provider of cockpit module
Slide 15: Highly experienced management team who have delivered
4.0 Highly experienced management team who have delivered. SMRP BV performance Management accomplishments 2017 2023 Improved performance, despite macroeconomic +53% headwinds, inflationary pressures & supply chain issues Order book 12.9 19.7 (EUR Bn) Global light Successfully Implemented strategies
Slide 16: Backed by a strong, well-capitalised committed parent company
5.0 Backed by a strong, well-capitalised committed parent company. SAMIL’s credit rating 2023 comparison Other SAMIL attributes (vs. SMRP-BV) International Values in SMRP-BV SAMIL2 Difference EUR Bn + Component Ba1 (Stable Outlook) diversification + Customer Booked diversification 36.9 63.5 +72% bus
Slide 17: Appendix
03 Appendix. 17
Slide 18: SAMIL is well diversified across components, customers and countries
SAMIL is well diversified across components, customers and countries. 3CX10 strategy: no country, no customer or component should contribute more than 10% of our revenues For FY 2023 Component Customer Country Mercedes-Benz 9.5% India 22% Wiring Harness 29% Audi 8.9% USA 18% Vision Systems 19% Volks
Slide 19: SMRP-BV trading update for Q4 2023 (1/2)
SMRP-BV trading update for Q4 2023 (1/2). • Healthy revenue • Energy prices • Further deleveraging • Renewal of revolving • Robust Order Book of growth; 4% vis à vis softened whilst in Q4 credit facilities EUR 19.7 Bn, total Q3 FY23 and 24% on material remained at agreement until May Booked Business
Slide 20: SMRP-BV trading update for Q4 2023 (2/2)
SMRP-BV trading update for Q4 2023 (2/2). Revenues (EUR Mn) Growth: Growth: 27% YoY / 4% QoQ 1,620 1,688 24% YoY 6,202 1,328 4,993 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 EBITDA (EUR Mn) 7.6%* 6.6%* 6.7% 10 6.8% 10 5.6% 128 410 108 340 74 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Represents write back of provisio
Slide 21: Thank you
Thank you. © Motherson All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containi