Samvardhana Motherson International Limited · NSE:MOTHERSON
Samvardhana Motherson International — Q2 FY2022-23 Earnings Presentation
43 slides from Samvardhana Motherson International's earnings presentation, Nov 10, 2022
Slide 1: Stock exchange filing cover letter
Samvardhana Motherson International Limited (formerly Motherson Sumi Systems Limited) Head Office: C-14 A & B, Sector 1, Noida – 201301 Distt. Gautam Budh Nagar, U.P. India Tel: +91-120-6752100, 6752278, Fax: +91-120-2521866, 2521966, Website: www.motherson.com November 10, 2022 National Stock Excha
Slide 2: Q2 FY 2022-23 Results Presentation
Proud to be part of. Samvardhana Motherson International Limited (Formerly Motherson Sumi Systems Ltd.) Q2 FY 2022-23 Results Presentation
Slide 3: Key Highlights
Key Highlights.
Slide 4: Strong Performance amidst continued inflationary headwinds
Strong Performance amidst continued inflationary headwinds Acquisitions to support Strong EV share in the our customers. Order Book4 of SMRP BV. YoY QoQ Frame Share of Electric Vehicle5 Revenue Manufacturing and is 37% (up from 27% as on March 2022) 30% 4% Assembly operations from DICV in India Tota
Slide 5: Improvement in external environment, though it remains volatile and uncertain
Improvement in external environment, though it remains volatile and uncertain. 44
Slide 6: Commodities prices stabilising; inflationary and energy headwinds remain
Commodities prices stabilising ; while inflationary and energy related headwinds remain. Copper Prices1 Resin Prices1 USD / Metric Tonne USD / Metric Tonne 324 321 312 300 305 322 9,700 9,372 9,699 9,997 9,513 8,504 254 7,745 Volatile and Mar-2 1 Jun -21 Sep -21 De c-21 Mar-2 2 Jun -22 Sep -22 uncer
Slide 7: Geopolitical crisis keeping energy prices elevated; proactive steps to mitigate risk
Geopolitical crisis keeping energy prices at elevated levels; Pro active steps being taken to mitigate risk... Our Risk Assessment Framework Germany Hungary France Spain Portugal UK % Energy Dependance on Russia1 (approx.) 20% 35% 12% 10% <10% <10% Share of SAMIL Revenue2 13% 6% 4% 5% <2% <2% Macro
Slide 8: Rebound in Automotive volumes across geographies
Rebound in Automotive volumes (light vehicles) across geographies supported by easing supply chain challenges. 77
Slide 9: Growth in Light Vehicle production across major geographies
Growth in Light Vehicle production across major geographies, while volumes in Europe remain subdued… Europe. North America. Total Light Vehicle Production is at Light Vehicles Commercial Vehicles 21.2 million units in Q2FY23 Light Vehicles Commercial Vehicles 24% 20% 19% 17% Global. 2% 3% Light Vehi
Slide 10: Production of premium vehicles in Europe remains stable
…although production of premium vehicles in Europe remains stable over the last few quarters. Light Vehicle Production in Mn Units Europe North America Mar 2021 Share of Premium Sep 2022 Mar 2021 Share of Premium Sep 2022 26% in LV Production 28% 14% in LV Production 18% YoY +16% YoY +23% 3.5 3.1 2.
Slide 11: Strong improvement in operating performance with focus on financial discipline
Strong improvement in operating performance with focus on financial discipline. 10 10
Slide 12: Highest ever quarterly revenues; significant improvement in profitability
Highest ever quarterly revenues; Significant improvement in steady Q-o-Q growth over past profitability quarters Revenue1, 2,5 Growth EBITDA1,2,3,4 Growth (Rs in Crores) 30% YoY / 4% QoQ (Rs in Crores) 47% YoY / 30% QoQ 4 18,261 1,800 8.3% 7.9% 9. 0% 17,615 1,700 7.2% 7.2% 17,185 7.1% 8. 0% 1,600 6.
Slide 13: Controlled leverage and conserving cash
Controlled leverage and conserving cash Net Debt1,2 Capex3 (Rs in Crores) (Rs in Crores) 14,00 0 2.1 2,000 80% 1.9 1.9 2.0 1,800 67% 70% 2. 0 12,00 0 1,600 54% 1.5 60% 10,00 0 1,400 46% 1,292 1,520 1,426 1. 5 1,200 50% 1.2 1,270 1,369 8,000 35% 1,306 1,000 31% 32% 40% 6,000 1. 0 800 683 698 540 30%
Slide 14: Working Capital currently expanded
Working Capital currently expanded. Inventory Days (on sales) 40 39 38 38 Post Covid Avg Over 36 36 36 Rs. 2,000 crores 35 35 35 blocked in carrying extra 31 inventory 30 30 28 28 27 27 27 Pre Covid Avg Q1 F Y 19 Q2 F Y 19 Q3F Y19 Q4F Y19 Q1 F Y 20 Q2 F Y 20 Q3F Y20 Q4F Y20 Q1 F Y 21 Q2 F Y 21 Q3F Y
Slide 15: Un-deterred focus on growth
Un-deterred focus on growth. 14 14
Slide 16: Continued focus on growth in Indian market
Continued focus on growth in Indian market Growth in Indian H1FY23 Recent developments in India. Business. Share of Organic Growth (Illustrative examples) Revenues Revenues1 at 24% of • Greenfield being set up (Rs in crore) SAMIL 41% Gross1 • For tooling related to lighting business – to 9,886 Reven
Slide 17: We continue to evaluate M&A Opportunities
We continue to evaluate M&A Opportunities. Gained foothold with Japanese OEMs globally; announced acquisition* of mirror business of Ichikoh Industries Product Range Ichikoh Industries is one of 1 the key suppliers of Automotive Mirrors to Japanese OEMs in Japan, China and Thailand Provides foothold
Slide 18: Booked Business
motherson P| | Booked Business.
Slide 19: Robust Booked business, reflection of customer trust
Robust Booked business, reflection of customer trust. (at SMRP BV Level) Share Share of Electric of Electric Vehicles Vehicles 37% € 15.7 bn € 33.9 bn 27% € 16.1 bn € 4.9 bn € 18.2 bn (€ 2.8 bn) Order Book as on SOP H1 FY22 New Orders H1 FY22 Order Book as on Under production as of Total Booked busi
Slide 20: Business & Financial Highlights
Business & Financial Highlights.
Slide 21: SAMIL Consolidated
SAMIL Consolidated. (Rs in Crores) (Rs in Crores) Revenues1,4. EBITDA1,2. 2 Growth 18,261 Growth 7.9% 30% YoY / 4% QoQ 17,615 47% YoY / 30% QoQ 1,494 2 46 14,076 7.2% 6.5% 1,448 1,151 1,014 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 PBT1,2. PAT1,3. 325 (before exceptional items and share of ass
Slide 22: SAMIL Standalone
SAMIL Standalone. (Rs in Crores) (Rs in Crores) Revenues1,2. EBITDA1,. Growth Growth 42% YoY / 12% QoQ 1,811 69% YoY / 36% QoQ 1,618 12.8% 1,279 300 10.7% 10.5% 232 14. 0% 250 12. 0% 200 170 10. 0% 150 137 8. 0% 6. 0% 100 4. 0% 50 2. 0% - 0. 0% Q2 FY22 Q1 FY22 Q2 FY23 Q2 FY22 Q1 FY22 Q2 FY23 PBT1. P
Slide 23: Risk mitigation via diversification: 3CX10 (H1FY23)
Continued Focus on risk mitigation via diversification : 3CX10 (H1FY23) Component wise. Customer wise. Country wise. (top 15 customers) Mercedes Benz 10% India 24% Wiring Harness 29% Audi 9% USA 19% Vision Systems 17% Volkswagen 7% Germany 13% Suzuki/… 6% Bumpers* 13% China 10% BMW 5% Hungary 6% Doo
Slide 24: Motherson 2.0
Motherson 2.0 01. 02. 03. 04. Wiring Vision Modules & Emerging Businesses harness Systems Polymer Products (Others) Elastomers Lighting & Precision Metals Technology & Aerospace Logistics Health & Services Electronics & Modules Industrial Solutions Solutions Medical Non-Auto 23 23
Slide 25: Wiring Harness
Wiring Harness. 24 24
Slide 26: Wiring Harness Division
Wiring Harness Division. Revenues1 Growth Commentary. (Rs in Crores) 22% YoY / 5% QoQ 6,096 6,394 5,259 • Revenue growth in-spite of largely muted commercial vehicle markets globally, China remain significantly underperformed • Passenger vehicle market in India remain robust • Sequential margin impr
Slide 27: Modules and Polymer products
Modules and Polymer products. 26 26
Slide 28: Modules and Polymer Products
Modules and Polymer Products. Revenues1 Growth Commentary. (Rs in Crores) 27% YoY / 4% QoQ 9,744 • Despite challenging market conditions in Europe, 9,413 revenue growth Q-o-Q driven by premiumisation 7,679 of light vehicles • Improvement in profitability QoQ on account of • Cost saving initiatives •
Slide 29: Vision Systems
Vision Systems. 28 28
Slide 30: Vision Systems
Vision Systems. (Rs in Crores) Revenues1, 2 Growth Commentary. (Rs in Crores) 32% YoY / 13% QoQ 3,936 • Revenue growth Q-o-Q driven by North America and 3,482 China whilst Europe remained muted 2,982 • Improvements in profitability on account of • Operating leverage • Efficiency Programs Q2 FY22 Q1
Slide 31: Emerging Businesses (Others Business Divisions)
Emerging Businesses . (Others Business Divisions) 30 30
Slide 32: Emerging Businesses: exponential growth potential with large addressable market
Emerging Businesses (Others Business Division) Exponential growth potential with large addressable market. Revenue by Segment Q2 FY23 Elastomers, 9.4% Lighting & Electronics, 44.6% 04 Elastomers 05 Lighting & 06 Precision 07 Technology & Precision Electronics Metals & Modules Industrial Solutions Me
Slide 33: Emerging Businesses
Emerging Businesses. (Others Business Division) Revenues1,2,3. Growth Elastomers Lighting & Electronics (Rs in Crores) 8% QoQ 1,753 • Product portfolio expansion with • Setting up vertical integration for 1,617 reinforced profile hoses, mining Lighting specific tooling (only supplier wrap hoses, sil
Slide 34: Summary of divisional financial performance
Summary of divisional financial performance. Financials Q2 FY23 Amount in INR crores Business Division Revenue* EBITDA EBITDA% Wiring Harness 6,394 522 8.2% Modules & Polymer Products 9,744 652 6.7%3 Vision Systems 3,936 359 9.1% Emerging Businesses (Others)1 1,753 175 10.0% Less: Eliminations/Inter
Slide 35: Debt Status
Debt Status. (Rs in Crores) Net Debt. A. Net Debt. (Consolidated) Rs. In Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Crores 8,739 8,546 8,269 7,627 7,768 Gross 10,745 10,445 11,060 13,457 12,761 12,356 12,671 Debt 6,158 Cash & 4,807 Bank 5,938 4,287 3,433 4,718 4,993 4,087 4,126 Net 4,807 6,158
Slide 36: Reference Rates and Notes
Reference Rates and Notes. Copper Rates. Notes. Average Q2 FY22 Q1 FY23 Q2 FY23 1. This presentation has been prepared from the unaudited financial results for the quarter ended on 30th September 2022. Explanatory notes have been added with LME Copper (USD / MT ) 9,372 9,526 7,742 additional informa
Slide 37: Thank you. Safe harbor
Thank you. Safe harbor 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 ba
Slide 38: Annexure
motherson P| | Annexure.
Slide 39: SAMIL Consolidated H1FY22 vs H1FY23
SAMIL Consolidated H1FY22 vs H1FY23. (Rs in Crores) (Rs in Crores) Revenues1,4. EBITDA1,2. Growth Growth 12% YoY 2 19% YoY 7.2% 35,875 7.8% 2,645 30,234 46 2 2,355 2,599 H1 FY22 H1 FY23 H1 FY22 H1 FY23 PBT1,2. PAT1,3. (before exceptional items and share of associates) (Concern Share) Growth 838 32%
Slide 40: SAMIL Standalone (H1FY22 vs H1FY23)
SAMIL Standalone (H1FY22 vs H1FY23). (Rs in Crores) (Rs in Crores) Revenues1,2. EBITDA1,. Growth Growth 43% YoY 43% YoY 3,429 600 11.7% 11.7% 14. 0% 2,393 500 402 12. 0% 400 10. 0% 300 281 8. 0% 6. 0% 200 4. 0% 100 2. 0% - 0. 0% H1 FY22 H1 FY23 H1 FY22 H1 FY23 PBT1. PAT1. (before exceptional 600 ite
Slide 41: Historical Summary of Quarterly divisional performance
Historical Summary of Quarterly divisional performance. (Rs in Crores) Revenues* EBITDA Business Divisions Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 FY22 FY22 FY22 FY22 FY22 FY22 FY23 FY23 FY22 FY22 FY22 FY22 FY22 FY22 Wiring Harness 5,468 5,259 5,256 5,957 21,940 6,096 6,394 478 508 371 556 1,913 483 522
Slide 42: History of successful acquisitions by Motherson
History of successful acquisitions by Motherson. 28 Frame Manufacturing 08 and Assembly 05 Dagger Frost Tools Business* of Huon Corporation India (Gear cutting DICV Pvt Ltd.. Australia (Door trim tools) India Asset business) Strategic business 17 Purchase units purchase 12 Abraham and 01 Sintermetal
Slide 43: Thank you
motherson Thank you. Proud to be part of samvardhana motherson all
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