Gabriel India Limited · NSE:GABRIEL
Gabriel India — Investor Presentation (May 2016)
37 slides from Gabriel India's investor presentation, May 2016
Slide 1: Gabriel India Ltd. Investor Presentation – May 2016
Gabriel India Ltd. Investor Presentation – May 2016
Slide 2: Disclaimer
This presentation and the accompanying slides (the “Presentation”), has been prepared by Gabriel India Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or b
Slide 3: Agenda
• An Introduction 4 • Business Overview 5 • Strategy Going Ahead 17 • Financial Highlights 20 • Corporate Overview 29 3
Slide 4: An Introduction
An Introduction Incorporation of Company, Gabriel India, in 1961 No “OE” accounts for more than 20% of Pioneer of Ride Control Products in the country sales Established significant presence in all channels of automotive sale, OE, Aftermarket and Exports Well diversified OEM Customer Base in every au
Slide 5: Business Overview
Business Overview Head Office, Pune, India 5
Slide 6: Pioneer of Ride Control Products…
Pioneer of Ride Control Products… Commercial Vehicle & 2/3 Wheeler Passenger Car Railways Front Forks McPherson Struts Shock Absorbers Hydraulic Shock Gas Shock Absorbers Cabin Dampers Absorbers Gas Shock Absorbers Cartridges Seat Dampers AFTER MARKET ACROSS ALL SEGMENTS 6
Slide 7: ……With Diversified Revenue-Mix
……With Diversified Revenue-Mix Sales (Rs. Mn) Segment - Wise - FY16 2/3 CAGR +13% Wheelers 14,441 14,382 58% 12,866 12,053 11,282 Passenger 9,700 Commercial cars Vehicles 31% 11% 7,055 Channel - Wise - FY16 Aftermarket OE 13% 83% FY10 FY11 FY12 FY13 FY14 FY15 9M FY16 Exports 4% 7
Slide 8: Key OE Customers
Key OE Customers Commercial Vehicle & 2/3 Wheeler Passenger Car Railways “No” OE Customer accounts for more than 20% of Total sales - Balanced Portfolio 8
Slide 9: Aftermarket
Aftermarket • “Gabriel” - Brand synonymous with Branding Initiatives shock absorbers, with market share of • “Elite Retailer Program” – First of its kind in 45% industry • With objective to build loyalty amongst • Established Pan-India network retailers & mechanics – 17 CFA Locations • Honouring and
Slide 10: Branding
Branding Branding at Bus Shelters Campus Branding Hoardings/Umbrella at Pune Distribution/ VW Vento Cup 10
Slide 11: Exports
Exports • Establishing Network in 8 New Geographies Export Sales (Rs.Mn) CAGR +29% • Through Structured Market Research & Systematic approach ingraining seeds of 558 571 553 Gabriel India competencies worldwide • Created presence across Colombia, 415 382 Venezuela, USA, Iran, Japan, African markets
Slide 12: Strategic Manufacturing Footprint
Strategic Manufacturing Footprint Ashok Leyland SML Isuzu Honda Cars GIL Presence Tata Motors Honda Motorcycles TVS Motors Parwanoo GIL Plants ICML Yamaha India Maruti Suzuki Khandsa GIL Satellite Locations Suzuki Motorcycles AMW GM Sanand Dewas Tata Motors Hindustan Motors Honda Motorcycles Nashik
Slide 13: Manufacturing Facilities – 2/3 Wheelers
… Manufacturing Facilities 2/3 Wheelers Client Key Features • Commenced production in 1990 Nashik • Products: Shock Absorbers & Front Forks • TC with Yamaha Motors Hydraulic System • Commenced production in 1997 • Products: Shock Absorbers & Front Forks Hosur • TC with KYB Japan & Yamaha Motors Hydr
Slide 14: Manufacturing Facilities – Passenger Cars and Commercial Vehicles
… Manufacturing Facilities Passenger Cars Client Key Features • Commenced production in 1997 Chakan • Segment Serviced : Passenger Cars, Utility Vehicles and Railway • Products: Shock Absorbers & Struts • Khandsa Commenced production in 2007 • Products: Shock Absorbers & Struts • TC with KYB Japan C
Slide 15: Strong In-house R&D & Global Technology Partners
Strong In-house R&D & Global Technology Partners In-house Research & Development Proven Engineering Capabilities - Product • Well equipped State-of-the-art R&D • First to introduce adjustable rear suspension for 2W centres • Designed & developed Remote Canister Shock – Chakan, Hosur & Nashik Absorbe
Slide 16: Signed Technical License Agreement with KONI…
Signed Technical License Agreement with KONI… • KONI, Netherland based company and part • Under arrangement, KONI will provide of New York-based ITT Corp, has more than technology to design, develop and manufacture innovative damper products for 150 years of experience in area of Shock Commercial Ve
Slide 17: Strategy Ahead
Strategy Ahead Head Office, Pune, India 17
Slide 18: To grow…
To grow… - Debt Reduction - BEP Reduction - Simplification TECHNOLOGY & - Automation INNOVATION EFFICIENCY IMPROVEMENT - R & D Focus - Sustainable Manufacturing - Innovation Culture SALES GROWTH - Exports Focus - In Organic Growth - Global Manufacturing Footprint - Customer Focus 18
Slide 19: … With SBU Approach
… With SBU Approach SBU Structure for focused approach • Created Strategic Business Units for each automotive segment : 2Wheelers/ 3Wheelers, Passenger Cars & Commercial Vehicles / Railways and After-Market Channel • To derive benefits in • Customer & Product Focus • Export Push • After market expan
Slide 20: Financial Highlights
Financial Highlights Head Office, Pune, India 20
Slide 21: Quarterly Profit & Loss Highlights
Quarterly Profit & Loss Highlights Rs. Mn Q4 FY16 % of Sales Q4 FY15 % of Sales YoY% Revenue 3,662 100.0% 3,484 100.0% 5% Raw Material 2,628 71.8% 2,494 71.6% Employee Expenses* 279 7.6% 277 7.9% Other Expenses 428 11.7% 428 12.3% EBITDA 326 8.9% 285 8.2% 15% Adjusted EBITDA** 331 9.0% 285 8.2% 16%
Slide 22: Quarterly Performance Trend
Quarterly Performance Trend Revenue EBITDA EBITDA Margin% (Rs.Mn) 3,752 350 9.9% 3,595 329 3,484 3,548 8.8% 3,419 288 284 283 8.2% 8.3% 8.0% Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q3FY15 Q4FY15 Q1FY16* Q2FY16Q3FY16** Q3FY15 Q4FY15 Q1FY16* Q2FY16Q3FY16** PBT Before Exceptional Item & Margin (%) 300 6.7%
Slide 23: Improving Dividend Profile
Improving Dividend Profile Dividend Per Share (Rs.) 1.2 • Continuous Dividend 1.05 since 1998 0.85 • Stable Payout Ratio 0.75 • Declared Final Dividend 0.5 0.5 of Rs. 0.75 per share, amounting to 75% of Face Value. • Total Dividend of Rs.1.20 FY11 FY12 FY13 FY14 FY15 FY16 per share of Re.1 each 15%
Slide 24: Historical Profit & Loss Highlights
Historical Profit & Loss Highlights Rs.Mn FY16 FY15 FY14 FY13 Revenue 14,382 14,441 12,866 12,053 Raw Material 10,282 10,432 9,266 8,644 Employee Expenses 1,150 1,075 982 911 Other Expenses 1,674 1,769 1,714 1,672 EBITDA 1,276 1,164 904 826 Margin 9.0% 8.1% 7.0% 6.9% Other Income 42 43 56 40 Interes
Slide 25: Balance Sheet Highlights
Balance Sheet Highlights Rs. Mn Mar-16 Mar-15 Rs. Mn Mar-16 Mar-15 Shareholder’s Fund 3,799 3,254 Non-current assets 2,997 2,958 Share capital 144 144 Fixed assets 2,746 2,708 Reserves & Surplus 3,656 3,111 Long-term loans and advances 236 226 Non-current liabilities 277 260 Other non-current assets
Slide 26: Reduction in Borrowings
Reduction in Borrowings 1,276 17 Others 288 Finance Lease Term Loan 920 7 Working Capital 83 Public Deposit 653 7 716 666 461 131 112 255 4 32 164 185 53 95 59 Mar’12 Mar’13 Mar’14 Mar’15 Mar’16 26
Slide 27: Profitability Highlights
Profitability Highlights Revenue EBITDA (Rs.Mn) CAGR +13% CAGR +14% 14,441 14,382 1,276 12,866 1,164 12,053 11,282 941 9,700 888 904 826 6,970 573 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 EBITDA Margin% PAT CAGR +21% 9.2% 8.9% 752 8.2% 8.3% 8.1% 6.9% 7.0% 600 531 453 426
Slide 28: Balance Sheet Highlights
Balance Sheet Highlights (Rs.Mn) Networth D:E Ratio 3,799 1.00 3,254 0.80 2,852 2,569 2,312 1,865 0.53 1,493 0.31 0.23 0.04 0.03 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Capital Employed ROCE 3,676 3,607 25.5% 3,513 3,534 3,485 3,492 19.0% 18.0% 17.0% 16.0% 11.0% FY10 FY
Slide 29: Corporate Overview
Corporate Overview Head Office, Pune, India 29
Slide 30: Gabriel Evolution
Gabriel Evolution • Expanded in all segments with new plants at Parwanoo, Khandsa , Sanand & Malur • Single Unit Manufacturing to Multi Location segment wise • Installed “Dynachrome manufacturing : Passenger car Automation Machine” for • Incorporated Gabriel s segment with plant at plating, 1st in A
Slide 31: Led by Experienced Professionals
Led by Experienced Professionals Mr. Deepak Chopra – Group CEO, Anand Group • Chartered Accountant & Company Secretary, with 37 years of experience across Industries • Associated with Anand Group since 1976 • Rich experience in Finance, Tax, Operations, Secretarial, and Project Management Mr. Manoj
Slide 32: Led by Experienced Professionals
Led by Experienced Professionals Mr. Rajendra Abhange, CTO Mr. Atul Jaggi , COO, TWBU Mr. Amitabh Srivastava, COO, AMBU Mr. Sumit Bhatnagar, COO, PCBU Mr. Umesh Shah , COO, CVRBU 32
Slide 33: Board of Directors
Board of Directors Mrs. Anjali Singh – Chairperson, Gabriel India • Joined Anand Group in 2005 • Studied Business Management at University of Westminster, UK, and Fine Arts at Central Martin’s School of Arts and Design, UK • Also serves as Chairperson, Supervisory Board, Anand Group since 2011 Mr. J
Slide 34: Board of Directors
Board of Directors Mr. Aditya Vij – Non Executive Independent Director • Over 3 decades of experience in the corporate world with a proven track record of developing and turning around businesses in various leadership positions. • Served as the Chief Executive Officer at Fortis Healthcare Limited fr
Slide 35: Great Place to Work
Great Place to Work 2012 • Gabriel India Ranked #3 in Auto Component Industry • Recognized among the Best Companies in its Industry 2015 • Gabriel India Ranked #2 in Auto Component Industry • Rank #43 among Top 50 Companies to work for in India 35
Slide 36: Industry Accolades
Industry Accolades “Overall Cost Reduction” Award from Suzuki Motorcycles for 2015-16 FICCI Quality System Excellence Award for Manufacturing 2015 Gold Trophy in the Excellence in HR (Special) Category by ACMA “Strong Commitment to HR Excellence” by CII State level Quality Award under Auto
Slide 37: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Gabriel India Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L34101PN1961PLC015735 CIN : U74140MH2010PTC204285 Mr. Rajendran Arunachalam Ms. Sanjita Ghosh / Mr. Shogun Jain rajendran.arunachalam@gabriel.co.in gsanjita@s