Rane Holdings Limited · NSE:RANEHOLDIN
Rane — FY2019 Earnings Presentation
38 slides from Rane's earnings presentation, May 27, 2019
Slide 1: Cover letter to stock exchanges
Registered Office: Tel 91 44 28|l 2472 " Moithri " Fox 91 44 28|ì 2449 I 32, Cothedrol Rood URI www. ronegrouP.com Chennoi ó00 08ó lndio. CIN : 135999TNI 93óP1C0O2202 Rqne Holdings Limiled RHL / SE / oî/ 2019-20 May 27,2019 BSE Limited National Stock Exchange of lndia Ltd. Listing Centre NEAPS Code
Slide 2: Rane Group Earnings Presentation FY19
Rane Group Earnings Presentation | FY19 M a y 2 0 1 9 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Outline
Outline › Overview › Industry Performance Review – FY19 › Rane Group Performance Review – FY19 › Group Companies Performance Highlights – FY19 Not to be copied or distributed without permission of Rane Holdings Limited 2
Slide 4: Overview
Overview › Founded in 1929 for trading in automobile and automotive parts; Headquartered in Chennai, India. 1% 6% › Commenced manufacturing operations in 1959. 8% › Group Sales of INR 5,236 Cr (~USD 750 mn) › Most preferred manufacturer and supplier for global 10% auto majors › Serves a variety of i
Slide 5: Business Portfolio
Business Portfolio 1% Revenue by 9% Markets Group Sales in 2018-19: INR 5,236 Cr 19% (~USD 750 mn) UO with 20% from International markets 12% growth over last year; 16% CAGR over last 10 years 71% 3% 2% Revenue by Markets Revenue by Vehicle Segment (India OEM) 6% 71% India - OEM 61% Passenger Vehicl
Slide 6: Rane Group – Business Structure
Rane Group – Business Structure Steering and Rane TRW Steering Rane (Madras) Ltd. Rane NSK Steering Suspension Systems Pvt Ltd. Steering & Linkages Division Systems Pvt Ltd. Systems Steering Gear Division Friction Rane Brake Lining Ltd. materials Valve Train Rane Engine Valve Ltd. Components RANE GR
Slide 7: Rane Group – Holding Structure
Rane Group – Holding Structure Promoters Rane Holdings Ltd. (RHL) 46% Subsidiaries Joint Ventures Rane (Madras) Ltd. (RML) Rane TRW Steering Systems 62% Pvt. Ltd. (RTSS) 50% Rane Precision Die Casting Inc.* (RPDC) 100% Rane NSK Steering Systems Rane Engine Valve Ltd. Pvt. Ltd. (RNSS) 49% (REVL) 55%
Slide 8: Outline
Outline › Overview › Industry Performance Review – FY19 › Rane Group Performance Review – FY19 › Group Companies Performance Highlights – FY19 Not to be copied or distributed without permission of Rane Holdings Limited 7
Slide 9: Industry Performance Review (FY19)
Industry Performance Review (FY19) Production YoY Rane Group Sales Growth Rane Group Revenue Vehicle Segment Growth# in % YoY in % (India OEM) Split * (India OEM) Passenger Cars (PC) -1% 4% 41% Utility Vehicles (MUV) 1% 7% 19% Vans (MPV) 21% 25% 1% - Total Passenger Vehicle 0.1% 5% 61% Small Commerc
Slide 10: Outline
Outline › Overview › Industry Performance Review – FY19 › Rane Group Performance Review – FY19 › Group Companies Performance Highlights – FY19 Not to be copied or distributed without permission of Rane Holdings Limited 9
Slide 11: Group Aggregate Performance Review (FY19)
Group Aggregate Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.9% 6.8% 10.3% 569.7 5.4% 5,369.4 4,792.7 2.9% 553.2 10.7% 12.0% 324.5 289.7 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 12.0% from Rs. 4
Slide 12: RHL Consolidated Performance Review (FY19)
RHL Consolidated Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.1% 9.6% 9.8% 7.6% 2,570.3 256.5 221.3 11.3% 2,312.1 250.9 196.2 11.2% 2.2% FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items and includes profits from JV/associate › Total Ne
Slide 13: RHL: (Consolidated) Ratios and Return
RHL: (Consolidated) Ratios and Return Particulars 2018 2019 Debt: Equity (in times) 0.62 0.67 EPS (basic) (Rs.) 91.26 72.65 DPS (Rs.) 14.5 19.0 Dividend Payout *(%) 51% 49% BV (Rs.) 563.09 606.24 * Dividend payout (%) calculated on profits excluding one off income, if any. Not to be copied or distri
Slide 14: Outline
Outline › Overview › Industry Performance Review – FY19 › Rane Group Performance Review – FY19 › Group Companies Performance Highlights – FY19 Not to be copied or distributed without permission of Rane Holdings Limited 13
Slide 15: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) Not to be copied or distributed without permission of Rane Holdings Limited 14
Slide 16: RML – Standalone Operational Performance Review
RML – Standalone Operational Performance Review Business Split (FY19) Market Environment By Market (%) › Favourable growth for steering products in Indian market Intl OEM, 21 India OEM&OES, 66 › Lower offtake on served models for die casting products from the North American market India Aftermarket,
Slide 17: RML Standalone – Financial Performance Review (FY19)
RML Standalone – Financial Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.0% 5.1% 11.4% 4.9% 1,380.8 151.7 70.4 1,219.6 13.2% 8.8% 16.9% 139.5 60.2 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 13.2% f
Slide 18: RML Consolidated – Financial Performance Review (FY19)
RML Consolidated – Financial Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 2.8% 9.6% 1.6% 8.0% 1,564.6 40.1 1,408.7 134.9 6.7% 36.1% 25.6 11.1% 125.9 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 11.1% f
Slide 19: RML: Ratios and Return
RML: Ratios and Return RML Standalone 2018 2019 Debt: Equity (in times) 1.02 1.03 RoCE% 17.8% 16.8% EPS (basic) (Rs.) 37.61 40.38 DPS (Rs.) 12.0 8.5 Dividend Payout (%) 40% 26% BV (Rs.) 229.53 259.97 RML Consolidated 2018 2019 Debt: Equity (in times) 1.55 1.81 RoCE% 13.3% 9.6% EPS (basic) (Rs.) 21.7
Slide 20: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) Not to be copied or distributed without permission of Rane Holdings Limited 19
Slide 21: REVL – Operational Performance Review
REVL – Operational Performance Review Business Split (FY19) Market Environment By Market (%) › Modest demand from Indian OE segment Intl Aftermarket, 7 India Aftermarket, 8 › Stagnant Indian Aftermarket segment for engine reconditioning › Favourable demand environment on non automotive segment › Hig
Slide 22: REVL – Financial Performance Review (FY19)
REVL – Financial Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs. cr.) 4.7% FY2018 3.1% FY2019 4.1% -20.5 -21.1 424.9 15.4 29.0% 19.9 377.0 12.7% -4.8% -5.6% FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 12.7% from Rs. 377.0
Slide 23: REVL: Ratios and Return
REVL: Ratios and Return Particulars 2018 2019 Debt: Equity (in times) 0.77 1.04 RoCE% -5.5% -4.2% EPS (basic) (Rs.) (25.40) (20.20) BV (Rs.) 209.81 189.45 Not to be copied or distributed without permission of Rane Holdings Limited 22
Slide 24: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) Not to be copied or distributed without permission of Rane Holdings Limited 23
Slide 25: RBL – Operational Performance Review
RBL – Operational Performance Review Business Split (FY19) Market Environment By Market (%) › Strong demand for 2W Disc pads in Indian market Intl OEM, 4 India › Moderate demand from Aftermarket segment OEM&OES, 59 India Aftermarket, 37 Operational Highlights By Vehicle Segment (%) › Enhanced Afterm
Slide 26: RBL – Financial Performance Review (FY19)
RBL – Financial Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 16.5% 11.6% 14.4% 9.6% 521.0 80.4 56.5 11.1% 487.2 6.9% 6.9% 74.9 50.2 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 6.9% from Rs. 487.2 Cr i
Slide 27: RBL: Ratios and Return
RBL: Ratios and Return Particulars 2018 2019 Debt: Equity (in times) 0.00 0.00 RoCE% 31.2% 25.4% EPS (basic) (Rs.) 45.16 46.16 DPS (Rs.) 15.5 15.5 Dividend Payout (%) 41% 40% BV (Rs.) 237.80 265.03 Not to be copied or distributed without permission of Rane Holdings Limited 26
Slide 28: Rane TRW Steering Systems (RTSS)
Rane TRW Steering Systems (RTSS) Not to be copied or distributed without permission of Rane Holdings Limited 27
Slide 29: RTSS – Operational Performance Review
RTSS – Operational Performance Review Business Split (FY19) Market Environment By Market (%) › Strong demand for steering products from commercial vehicle segment India OEM&OES, › Strong offtake for occupant safety products from the international customers Intl OEM, 30 66 › Weakness in Indian Passen
Slide 30: RTSS – Financial Performance Review (FY19)
RTSS – Financial Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 13.0% 9.6% 12.9% 9.3% 1,392.3 181.3 24.9% 1,151.0 21.0% 148.2 106.9 133.6 22.4% FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 21.0% from Rs.
Slide 31: RTSS: Ratios and Return
RTSS: Ratios and Return Particulars 2018 2019 Debt: Equity (in times) 0.50 0.58 RoCE% 26.1% 26.7% EPS (basic) (Rs.) 82.47 101.37 DPS (Rs.) 28.0 34.0 Dividend Payout (%) 41% 40% BV (Rs.) 357.75 419.84 Not to be copied or distributed without permission of Rane Holdings Limited 30
Slide 32: Rane NSK Steering Systems (RNSS)
Rane NSK Steering Systems (RNSS) Not to be copied or distributed without permission of Rane Holdings Limited 31
Slide 33: RNSS – Operational Performance Review
RNSS – Operational Performance Review Business Split (FY19) Market Environment By Market (%) › EPS: Better off-take from served models despite slowdown in demand Intl OEM, 1 India OEM&OES, › MSC: Higher volumes on served programs 99 Operational Highlights By Vehicle Segment (%) › Inaugurated new fac
Slide 34: RNSS – Financial Performance Review (FY19)
RNSS – Financial Performance Review (FY19) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.3% 14.9% 7.5% 10.9% 1,298.8 1,410.6 146.3 27.2% 192.9 20.3% 8.6% 153.8 106.5 FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 * PBT before exceptional items › Total Net Revenue increased by 8.6% from Rs.
Slide 35: RNSS: Ratios and Return
RNSS: Ratios and Return Particulars 2018 2019 Debt: Equity (in times) 0.30 0.23 RoCE% 44.6% 29.0% EPS (basic) (Rs.) 66.73 38.46 DPS (Rs.) 20.0 17.0 Dividend Payout (%) 46% 53% BV (Rs.) 162.02 176.41 Not to be copied or distributed without permission of Rane Holdings Limited 34
Slide 36: Thank You
Thank You Rane Corporate Centre For further information, please contact: “Maithri" 132, Cathedral Road, investorservices@ranegroup.com or dpingle@christensenir.com Chennai - 600 086, India www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 35
Slide 37: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion bps Basis Points MW Megawatt BV Book Value M&HCV Medium & Heavy Commercial Vehicles CAGR Compound Annual Growth Rate EBITDA Earnings Before Interest, Tax and Depreciation & Amortisation CV Commercial Vehicles OE Original Equipme
Slide 38: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The