Tube Investments Of India Limited · NSE:TIINDIA
Tube Investments Of India — Investor Presentation (December 2019)
35 slides from Tube Investments Of India's investor presentation, Dec 3, 2019
Slide 1: Letter to exchanges: Investors Presentation
Tube Investments of India Limited (Formerly known as Tl Financial Holdings Limited) Dare House, 234, N.S.C. Bose Road, Chennai 600 001, India Tel: 91.44.4217 7770-5 Fax: 91.44.4211 0404 Website: www.tiindia.com CIN: L351 OOTN2008PLC069496 INDIA 3rd December, 2019 National Stock Exchange of India Ltd
Slide 2: Unleashing Potential
Unleashing Potential
Slide 3: Disclaimer
DISCLAIMER Certain statements included in this presentation may be forward looking statements made based on management's current expectations and beliefs concerning future developments and their potential effects upon Tube Investments of India Limited and its subsidiaries. There can be no assurance
Slide 4: Unleashing the Potential
* Unleashing the Potential ¢ 4 Financial Priorities * Decentralization * Driving improvement through project teams jo * TIWAY * Growth Focus * Strengthening the Balance Sheet * Business Performance by SBU _* Back-up details on products
Slide 5: Unleashing the Potential
ene Unleashing the Potential DECENTRALIZ- ATION & EMPOWERMENT FINANCIAL PROJECT-BASED OBJECTIVES APPROACH
Slide 6: Four Financial Objectives
Van i) Se: Four Fi n mt ancial Objectives " PBT/Sales 10% | Roce 30% FCF/PAT 85%
Slide 7: Four Financial Objectives: The journey so far
ae Four Financial Objectives The journey so far.. hae 4983 4335 Net Sales 17-18 18-19 Hi 18-19 H119-20 PBT (Before Excep.) 10% 371 7% 6% 218 5 218 164 17-18 = 18-19 H1 18-19 H1 19-20 =e pBT% [ll pst Free Cash Flow 86% 53% 154 59 208 85% 70% 95 17-18 = 18-19 H1 18-19 H1 19-20 <o= Fcr/PAT [Ei Fcr 17-1
Slide 8: Decentralization
#ké Decentralization @ Empowerment at Unit levels 18 BUs created o~ ~o Division head’s role changed from control to 4 pA i ’ supporting BUs in growth, lowering the centre of gravity
Slide 9: Project-based Approach to Improvements
Ne Project-based Approach to Improvements (A) Driving a Kaizen mind-set for improvements at all levels Fixed Cost Reduction Sourcing 60+ Project Teams to a Drive Improvements Target-oriented actions for continuous improvement in all functions
Slide 10: TI Way
exe TI WAY ¥ Sail 9 - SEGMENTS CSR Expanding Functions fealer Industrial etations base Maintenance “ Treasury Merchandising Tooling ua Fieeale » — SOLES proauction care support wHtications m ISS1OMsenioynent Sourcing f olicy Purchase er ormance 4 QualityOrgonizotion orhnolog Pruning ERP Development
Slide 11: Focus on Growth
FOCUS ON GROWTH * Different Approaches Based on Segment Potential ¢ Planning Across 3 Horizons ¢ New Businesses
Slide 12: Portfolio of Business & Expected Growth Patterns
Portfolio of Business & Expected Growth Patterns ) Capital allocation based on future potential 4% Low Growth< 5% * Auto Chains * Cycles 2019-20 2024-25
Slide 13: Focus on Growth Across Three Horizons
Focus on Growth Across Three Horizons Gradual progression towards higher levels of growth Use model as the * Acquire stressed assets in existing businesses (incl. overseas) Near adjacencies . r t isition (e.g., TBW, TMT) * Acquire stressed assets under Step ut asset acquisition ln iverray pease WAND
Slide 14: Criteria for New Business Lines
ae Criteria for New Business Lines Choosing the path carefully. FOCUSED ON : MARKET SIZE FOUR TRENDS Rs.6,000 Cr. or more (Import substitution } and Exports ] POTENTIAL Rs.1,000 Cr. in three years Auto Electrification _ Unorganized ) to organized LOW CAPITAL INTENSITY B2B to B2C Filters for new busi
Slide 15: Strengthening the Balance Sheet
ae: Strengthening the Balance sheet (@) Prudent Capital Management + Asset Monetization + NWC Efficiency 794 781 Rs.Crs a4 Ql a2 Q3 a4 qi Q2 Q3 , Qa Ql Q2 2016-17 2017-18 2017-18 2017-18 2017-18 2018-19 2018-19 2018-19 2018-19 2019-20 2019-20 — Net Debt / Equity [jj Net Debt
Slide 16: Financial Performance by Business
@ FINANCIAL PERFORMANCE BY BUSINESS
Slide 17: TI Performance — A Snapshot
£XéTI Performance — A Snapshot Rs. Cr. Particulars Standalone Consolidated FY 18-19 H1 18-19 H1 19-20 FY 18-19 H118-19 H119-20 Net Sales 4,983 2,574 2,239 5,463 2,822 2,506 Growth % -13.0% -11.2% PBT before exceptional items 371 164 218 375 187 237 % to Sales 7.4% 6.4% 9.7% 6.9% 6.6% 9.4% Exceptiona
Slide 18: TI — Other Key Ratios
axe TI — Other Key Ratios G) ) Wy EPS (Rs/share) ROE 13.0 21.7% 17.1% 16.9% 9.5 8.5 13.9% 73 11.2% i | 16-17 17-18 18-19 H118-19 H119-20 16-17 17-18 18-19 H118-19 H1 19-20
Slide 19: Engineering Business
Se: Engineering Business (@) * ERW Tubes - Electric Resistance Welded Tubes © CDW Tubes - Cold Drawn Welded Tubes © TCD - Tubular Components © CRSS — Cold Rolled Steel Strips ¢ LD - Large Diameter Tubes © Tamil Nadu - Avadi and Tiruttani (Large Diameter Tube) ¢ Maharashtra — Shirwal © Punjab — Mohal
Slide 20: Engineering Business — Financial Snapshot
Se: Engineering Business — Financial Snapshot ZCrs Particulars 18-19 H1 18-19 Hi 19-20 Growth % Net Sales 2,676 1,382 1,127 -18.4% PBIT 254 130 130 0.3% % to Net Sales 9.5% 9.4% 11.5% Crs Particulars 31-03-2019 30-09-2018 _ 30-09-2019 Net Fixed Assets 530 533 570 Net Working Capital 157 168 146 Capi
Slide 21: Engineering Business - Key Parameters
xe Engineering Business - Key Parameters ® Net Sales PBIT (Before Excep.) =o PBIT 2676 crs) PBIT% [Ml PsiT 2131 zag —_— 175 le 1127 I 130 130 17-18 18-19 H1 18-19 a 19-20 17-18 18-19 H118-19 Hi 19-20 ROCE 36.9% 36.9% 36.3% : ; i i 17-18 18-19 H1 18-19 14 19-20
Slide 22: Metal Formed Business
Se: Metal Formed Business ® f- Auto Chains Fine Blanking ¢ Doorframes e Railway Coaches ¢ Industrial Chains S rc > * Tamil Nadu — Ambattur, Nemilichery, Kakkalur, Athipet, Hosur * Telengana - Medak ¢ Uttarakhand ¢ Haryana — Bawal ¢ Gujarat - Sanand NN
Slide 23: Metal Formed Products — Financial Snapshot
Se: Metal Formed Products — Financial Snapshot ZCrs Particulars 18-19 H1 18-19 H119-20 Growth % Net Sales 1,286 613 690 12.5% PBIT 123 57 74 30.3% % to Net Sales 9.6% 9.3% 10.7% ZCrs Particulars 31-03-2019 30-09-2018 30-09-2019 Net Fixed Assets 336 296 339 Net Working Capital 114 122 123 Capital Emp
Slide 24: Metal Formed Products - Key Parameters
eG Metal Formed Products - Key Parameters () Net Sales 1286 1095 J i | 17-18 18-19 H1 H1 18-19 19-20 ROCE 26.2% 27.3% PBIT (Before Excep. crs) =o pBiT% [i psit 123 102 —T1 57 17-18 18-19 H1 H1 18-19 19-20 32.0% ‘ | 17-18 18-19 H118-19 H119-20
Slide 25: Cycles Business
Exe Cycles Business ® Cycles and Accessories ¢ 53 new models launched X * Tamil Nadu — Ambattur © Punjab — Rajpura * 8500 Dealers across India © 225 Track & Trail stores as on 30** September 2019 Ne © BSA, Hercules, Lady bird, Roadeo, Mach City, Montra, Track & Trail NX
Slide 26: Cycles Business - Market Share and Product Mix
S€ Cycles Business - Market Share and Product Mix 6G) Market Share Product Mix (%) Atlas Standards Hl Avon 37 28 WB specials SWS Hero | \ Others \ __ 28% _. Source : ACMA Industry Til
Slide 27: Cycles — Financial Snapshot
Se: Cycles — Financial Snapshot Zcrs Particulars 18-19 H1 18-19 H119-20 Growth % Net Sales 1,232 687 504 -26.7% PBIT 11 12 18 46.1% % to Net Sales 0.9% 1.8% 3.6% XCrs Particulars 31-03-2019 30-09-2018 _ 30-09-2019 Net Fixed Assets 134 139 135 Net Working Capital 56 103 35 Capital Employed 190 242 17
Slide 28: Other Details
Other Details
Slide 29: TI's Presence
Tl’s Presence MFPD Punjab (3) — Uttarakhand (2) Mohali & Rajpura Haryana (1) - Bawal Ys “ a Gujarat (1) — Sanand Maharashtra (2) Telengana (1) - Medak —Shirwal & Pune i a Tamil Nadu (8)
Slide 30: Shareholding Pattern
exe Shareholding Pattern @) Top 10 Institutional Holders Others * HDFC Mutual Fund * — Nippon India Mutual Fund * L&T Mutual Fund . SBI Mutual Fund Toyota Tsusho Corporation 438% Promoter & Promoter Group pit Cex * The Wellington Trust Company National Association 0 First State Investments ICVC- Ste
Slide 31: Share Price Movement
Se: Share Price Movement 436%) — 383 : 17-18 17-18 18-19 18-19 18-19 18-19 19-20 19-20 Q3 Q4 ext Q2 Q3 a4 Ql Q2 * ii nd is
Slide 32: Drive Chains and Metal Formed Products
Drive Chains Kit Cam Chains After Market Brands Metal Formed Products a= 2: e Side Impact Beams Door Frames eee Divisional Channels Cowl Cross Beam Railways , Power transmission 2 and Conveying By Chains rs ef Fine Blanked Products if Engineering Class se Chains
Slide 33: Track and Trail — Retail Experience
se: Track and Trail — Retail Experience Wha) aie 4 Best a
Slide 34: Shanthi Gears - Products
exe Shanthi Gears - Products of Ae Spur/ Internal Straight Spiral Helical Gear Bevel Bevel Gear ‘Worm Gearboxes- Special re Worm Gearboxes- Worm Gearboxes- Adaptable Standard Bevel Helical Helical Gearboxes Gearboxes
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Tube Investments of India — Investor Presentation (December 2019) on 6ix