Slide 1: Q2 and Half Year FY2015 Earnings
Q2 and Half Year FY2015 EARNINGS
Slide 2: Important Notice
IMPORTANT NOTICE 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 Dynamatic Technologies’ (“Dynamatic” or “Company”) future business
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Consolidated Financial Highlights H1 FY2015 Highlights • Net Revenues of Rs. 8,569 million; an increase of 13.2% y-o-y Q2 FY2015 Revenue Breakup • EBITDA of Rs. 837 million at 9.8% margin Aerospace & Defence Automotive • Interest expense declined by 10.4% y-o-y to Rs. 426 65%
Slide 4: Performance Highlights: Management Commentary
PERFORMANCE HIGHLIGHTS Management Commentary Commenting on the results, Mr. Udayant Malhoutra, CEO and Managing Director said: “In line with our ongoing deleveraging strategy, during the quarter we completed the sale and lease back transaction of our Peenya facility in Bangalore. We also completed t
Slide 5: Recent Corporate Developments
PERFORMANCE HIGHLIGHTS Recent Corporate Developments Order wins: • On November 13, 2014, Dynamatic announced signing of an outline agreement with BELL Helicopter as a single source supplier of major airframe assemblies for the BELL 407 GX. The value of the order is estimated to be $90 million over a
Slide 6: Financial Performance Summary
FINANCIAL PERFORMANCE SUMMARY Consolidated Performance Highlights Q2 y-o-y Q1 q-o-q Half Year y-o-y Rs. million Growth Growth Growth FY15 FY14 (% ) FY15 (% ) FY15 FY14 (% ) Revenue 4,319 4,024 7.3% 4,250 1.6% 8,569 7,572 13.2% EBITDA 374 474 (21.0)% 463 (19.2)% 837 770 8.6% Margin (%) 8.7% 11.8% 10.
Slide 7: Aerospace and Defence Segment
AEROSPACE AND DEFENCE SEGMENT Financial Overview Performance Overview • Robust y-o-y growth in revenues of both Q2 y-o-y Q1 q-o-q Rs. million growth growth India and UK businesses due to strong FY15 FY14 (% ) FY15 (% ) execution of the existing orders as per long-term order book Revenue 689 555 24.2
Slide 8: Hydraulics Segment
HYDRAULICS SEGMENT Financial Overview Performance Overview • India revenue growth driven by Q2 y-o-y Q1 q-o-q Rs. million growth growth continued strong demand in the FY15 FY14 (% ) FY15 (% ) agriculture sector Revenue 817 818 (0.1)% 782 4.5% • EBITDA margin impacted due to one time relocation expen
Slide 9: Automotive Segment
AUTOMOTIVE SEGMENT Financial Overview Performance Overview Q2 y-o-y Q1 q-o-q • India revenue under the machining Rs. million growth growth business continued to be under pressure FY15 FY14 (% ) FY15 (% ) • Margins were impacted due to higher Revenue 2,815 2,649 6.3% 2,873 (2.0)% cost of raw material
Slide 10: Automotive Segment: Financial Overview – India
AUTOMOTIVE SEGMENT Financial Overview – India Q2 y-o-y Q1 q-o-q Rs. million FY15 FY14 growth (% ) FY15 growth (% ) Machining Revenue 419 431 (2.8)% 384 9.1% Raw Material Consumption 287 269 7.0% 258 11.3% % RM Consumption 68.6% 62.3% 67.3% EBITDA (11) (1) nm (13) nm % EBITDA Margin (2.6)% (0.3)% (3.
Slide 11: Quarterly Financial Trends
QUARTERLY FINANCIAL TRENDS Strong Financial Performance Revenue (Rs. mn) Segment Wise Revenue Contribution 4,304 4,250 4,319 14% 15% 15% 14% 16% 4,024 3,999 20% 20% 18% 18% 19% 13.4% 7.6% 1.6% 66% 65% 67% 68% 65% (0.6)% (1.3)% Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q
Slide 12: Focus on Deleveraging the Balance Sheet
QUARTERLY FINANCIAL TRENDS Focus on Deleveraging the Balance Sheet Capital Structure Debt and Net Debt (Rs.mn) (Rs. million) Sep 30, 2014 Mar 31, 2014 5,916 5,475 5,252 Long Term 4,695 3,987 4,908 Borrowings Short Term 1,265 1,008 Borrowings Total Debt 5,252 5,916 Less: Cash & Cash 557 441 Equivalen
Slide 13: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products business for the automotive, hydraulic, aerospace and defence industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 14: Dynamatic Overview
DYNAMATIC OVERVIEW Vertically • Advanced iron and aluminium foundries in India and Germany for captive use Integrated • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of Facilities manufacturing highly intricate castings • In-house division for design validation and opti
Slide 15: Combination of Stable and High Growth Businesses
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components Audi • Daimler • Ford including engine, transmission, turbocharger and chassis parts Hyundai • Nissan • Tata 65% of Q2 • Metallurgical ferrous and Motors • Volkswagen FY15 a
Slide 16: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors Others Promoters • Goldman Sachs India Equity • Principal Trustee Co Pvt Ltd 27% Fund A/C Principal Mutual Fund - 51% • HDFC Trustee Company Limited Principal Emerging Blue Chip - HDFC Infrastructure Fund Fund DIIs • SBI Magn
Slide 17: Financial Statements: Income Statement
FINANCIAL STATEMENTS Income Statement Profit & Loss Statement (Rs. million) Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 3,984 3,960 4,266 4,217 4,270 Other Operating Income 40 39 39 33 49 Total Revenues 4,024 3,999 4,304 4,250 4,319 Expens
Slide 18: Balance Sheet – Assets
FINANCIAL STATEMENTS Balance Sheet – Assets Balance Sheet (Rs. million) Q2 FY14 Q4 FY14 Q2 FY15 ASSETS Non-Current Assets Goodwill 679 679 679 Fixed Assets i) Tangible Fixed Assets 5,685 5,967 5,558 ii) Intangible Fixed Assets 272 224 193 iii) Capital work in progress 769 28 71 iv) Intangible fixed
Slide 19: Balance Sheet – Liabilities
FINANCIAL STATEMENTS Balance Sheet – Liabilities Balance Sheet (Rs. million) Q2 FY14 Q4 FY14 Q2 FY15 EQUITY and LIABILITIES Shareholders Fund Share capital 54 55 60 Reserves and surplus 859 1,376 2,134 Money Received against Share Warrants 125 100 0 Non-controlling interest (Preference capital) 330
Slide 20: Contact Details
CONTACT DETAILS Mr. Hanuman Sharma Executive Director and Chief Financial Officer Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India T: +91 80 2839 4933 / 34 / 35 F: +91 80 2839 5823 E: hanuman.sharma@dynamatics.net Mr. Naveen Chandra DGM - Head Legal, Compl