Post on 03-Jul-2020
transcript
Proud
to be
part of.
SMRPBV Presentation
September 2016
London, U.K.
Content
• SMG Overview
• SMRP BV Overview
• SMRP BV Key Strengths
• SMRP BV Financial Overview
2
3
• Founded in 1975.
• One of the world’s fastest growing specialized automotive componentmanufacturing Group
• Customer spread across all vehicle segments
4
To be agloballypreferredsolutionsprovider.
Photo by Epicantus
Our Group vision.
The
vision of
the Group
has been the
same all along.
Our philosophy.
5
Return on
Purpose
03.CUSTOMER
VALUE
Trust
05.INCREASE CONTENT/
VALUE PER CARPlay a bigger
part in the success of our
customers
02.OUTSTANDINGPERFORMANCE
A relentless focus on
QCDDMSES
04.CUSTOMERRESPONSE
Asking Motherson to do more
01. PURPOSEProud to be part
of the world’s most admired
companies
• Focus on consistent outstanding
performance
– Never compromise on product quality
– Relentless focus on cost and capital
efficiency (QCDDMSES)(a)
• Trust:
Superior performance nurtures client
relationships
• Asked to do more:
– Leverage trust to enable greater client
engagement
– Sole supplier status and R&D
collaboration
• Increase content/value per car:
Trust and increased engagement to drive
cross-sell
• Pride in purpose/way of life:
Sustainable value creation, fuelling top
and bottom line as well as the de-risking
(a) Quality, Cost, Delivery, Development, Management, Safety, Environment and Sustainability
6
05 Metal working.
04 IT, engineeringand design.
A growing
portfolio that
is diverse
and
scalable.
Group business portfolio.
03 Polymers and modules.
06 Elastomers. 07 Manufacturing support.
01 Wiring harnesses.
02 Rear view mirrors.
7
Global Footprint.
We have a network of manufacturing facilities, engineering and design centers, marketing offices,
logistics centers and sourcing hubs across the world to serve our customers globally in geographies
of their presence
IRELAND
UK
GERMANY
CZECH
REPUBLIC
UAE
NETHERLANDS
AUSTRALIAMAURITIUS
SINGAPOREBRAZIL
USA
FRANCE
SPAIN
MEXICO
HUNGARY
CHINA
SOUTH KOREA
JAPAN
SOUTH
AFRICA
ITALYTHAILAND
SLOVAKIA
SRI LANKA
PORTUGAL
Presence in
25 Countries
Over 180facilities
INDIA
2.9
4.6
5.1
5.55.7
FY-12 FY-13 FY-14 FY-15 FY-16
Market leader in India
Strong presence in Europe and America in selected key non-LVend-markets (e.g. off-highway)
Rearview mirrors
Through SMRP B.V.
Note: March fiscal year end1) Based on MSSL audited financials prepared under Indian GAAP and converted into US$ at FX rate INR:US$ as of fiscal year-end date for each respective period
FY12: 50.88, FY13:54.28, FY14:59.89, FY15:62.50, FY16:66.25Source: Company data
MSSL Overview.
Motherson Sumi Systems
Limited (MSSL) the flagship
company of the Samvardhana
Motherson Group.
Established in 1986 in a joint
venture between Samvardhana
Motherson Group and
Sumitomo Wiring Systems
(Japan).
MSSL is a focused, dynamic
and progressive company
providing customers with
innovative and value-added
products, services and
solutions.
The Company is listed at the
stock exchanges in India since
1993
MSSL Background MSSL(1) revenue (USD bn) Overview of business portfolio
Selected customers
Other main businesses
Wiring harness
Interior and exterior modules and parts
Polymer processing and tooling
One of the largest moulded parts, assemblies and modules supplier to the Indian automotive industry
Production sites in India, UAE,Germany, Czech Rep. and S. Africa
8
Creating a more diversified and less risky business.
Geographical risk
• Presence in 25 countries both developed and emerging economies
Manufacturing risk
• Alternate manufacturing options with +180 facilities worldwide
• Standardised operations across all plants enable easy switchover
Customer risk
• Deepening customer bond
• No single customer dependence
Currency risk
• Manufacturing and sales in same currency regions gives natural hedge
• Pass through arrangements for major fluctuations
Technology risk
• Investing in future technologies
Product risk
• Diversified product range
• Increasing content per car
• Product innovation 3CX15
Working on a policy to
balance and grow the
business in such a way
that no
• Single customer
• Single country
• Single component
should constitute more
than 15% of the turnover
3CX15
9
Trusted partner for auto OEMs globally.
10
Trusted partner for auto OEMs globally.
Daimler
Best Performance
AwardPartner for Asia
VW
Partner for
FAST Program
Maruti Suzuki
Overall Excellence Design & Development
GM
Supplier of the yearSupplier Quality
Excellence Award
Toyota
Supplier of the year
Golden AwardZero PPM Award
Hyundai
Best Overall
Performance
11
Trusted partner for auto OEMs globally.
Renault
Nissan
Overall Best QCDM
Performance Awards
Nissan
Supplier Best Practices
Poke Yoke Development
Nissan
Best Quality
Performance Award
Tata Motors
Best Supplier Quality
JCB
Chairman’s Award
Special Citation
of Distinction
Q.C.R.P.M
Supplier
Performance
Caterpillar John Deere
Platinum Level in
Supplier Quality
Excellence Process
Commendable
Performance for
India Business
NAACO / Hyster Yale
Above and beyond
12
Rankings.
SMG ranked 31st
among Global Automotive
Suppliers by Automotive
NewsMSSL ranked No. 1 Auto Ancillary in India
for 6 consecutive
years by Fortune India
MSSL among the
Fab 50 companies
of Asia for 4
consecutive years by
Forbes
13
• SMG Overview
• SMRP BV Overview
• SMRP BV Key Strengths
• SMRP BV Financial Overview
14
15
Revenue: €2.6bnAdj EBITDA: €168m (6.4%)
Revenue: €1.4bn Adj EBITDA: €145m (10.4%)
Revenue: €4.0bn Adj EBITDA: €314m (7.8%)
Note: FY-16 financials1) Assumed exchange rate of INR per US$ of 66.14 as of fiscal year-end date of 31 March 2016 for Revenue and Adjusted EBITDA2) Assumed exchange rate of US$ per EUR of 0.8838 as of fiscal year-end date of 31 March 2016 Source: Company data
With c.76% of MSSL revenues2, SMRP B.V. is the platform for growing SMG’s international portfolio
Wiring Harness and
other businesses
Revenue: USD5.7bn1
Adj EBITDA: USD575m1 (10.0%)
c.76% of
Group’s
revenue
c.24% of
Group’s
revenue
SMRP B.V.’s positioning within SMG.
16
Global Presence.
22,800+ Workforce.
Module
Centers.
Countries.16
47 Manufacturing
Plants.
11
17 Market share source: LMC Automotive, Company data* Represents market share by volume in 2015
Manufacturing footprint
Comprehensive product portfolio Select customers
Low Medium Premium
Commercial Interior mirrors
14 countries
20 manufacturing plants and 2 just-in-sequence logistic centers
9,300+ motivated workforce
Manufacturing plants
24% global market share for exterior mirrors*
SMR division.One of the largest suppliers of rear vision systems for the global OEMs
Revenue and Adjusted EBITDA (€m)
1,0821,238
1,396
FY-14 FY-15 FY-16
9.8% 10.4%%
margin 9.4%
121 145Adj. EBITDA (€m)
101
18
Bumpers
Comprehensive product portfolio Select customers
SMP division.One of the largest suppliers of bumpers, instrument panels and door panels to European automotive OEMs
Door panelsInstrument panels
10% premium market share*
18% premium market share*
27% premium market share*
1,9162,246
2,618
FY-14 FY-15 FY-16
Revenue and Adjusted EBITDA (€m)
5.5% 6.4%%
margin 5.3%
124 168Adj. EBITDA (€m)
102
Manufacturing footprint
9 countries
27 manufacturing plants and 9 “just-in-sequence” logistic centres
~13,400+ motivated workforce
Manufacturing plants
Market share source: LMC Automotive, Company data* Represents market share by volume in 2015
19
• SMG Overview
• SMRP BV Overview
• SMRP BV Key Strengths
• SMRP BV Financial Overview
20
Key strengths.
• Strategic long-standing customer relationships with leading global OEMs
• Well-invested global footprint with close proximity to OEM customers and a focus on emerging markets
• Strong research and development capabilities and a track record of innovation
• High revenue visibility, underpinned by a strong track record of repeat business and diversified Order Book
• Consistent leading position by global market share
2
3
5
4
1
A Global, Diversified, Consistent and Stable business model
North America(a)
South America Asia-Pacific (excl China)
China
SMRP B.V. market share (%) and ranking in exterior mirrors, bumpers,
instrument panels and door panels – FY16
Note: Market share represent fiscal year figures. Market share based on total production by volume in the relevant region for both domestic and export markets
(a) Includes Mexico
(b) Excludes Russia
(c) Premium segment refers to passenger cars with premium brand image, including those produced under the Acura, Audi, BMW, Cadillac, Infinity, Jaguar, Land Rover, Lexus, Lincoln, Mercedes-Benz,
Porsche and Tesla brands, as well as luxury cars, sports cars and selected high-priced vehicles of other brands (typically exceeding €20,000 base price)
Source: LMC Automotive and Company estimates
Leading global position in main product segments, underpinned by ability to provide innovative, highly engineered solutions to customers locally on a global basis with resources to invest in R&D and growth to meet evolving customer requirements
Europe(b)
Exterior mirrors Instrument panels
(‘IP’)
Bumpers Door panels
China –
Premium Market(c)
Europe – Premium Market(c)
24%
39%15%
22% 29%15% 28%16%
58%
● Global leadership: One in
every four passenger cars
has SMRP B.V.’s products
● Market leadership supported
by:
– Leading technologies with
strong design, development
and engineering expertise
– Global footprint
– Proven operating track
record with leading
global OEMs
– R&D giving opportunities for
greater content per vehicle
● Focus on premium segment
– High customer switching cost
(complex products, logistics,
module assembly expertise)
– Leveraging technological know-
how to low/medium segmentsBumpers Instrument Panels Door Panels
Global Market Share (%)
Exterior Mirrors
22%
24%
18% 18%
9%10%
23%
27%
23%
(c) (c) (c)
(c)(c)(c)
21
1 Consistent leading position by global market share
22
Deep customer relationships
By product By region
CustomerMirrors Bumpers Instrument
panelsDoorpanels
Europe Americas Asia
Audi ✔ ✔ ✔ ✔ ✔ ✔ ✔
BMW ✔ ✔ ✔ ✔ ✔ ✔
Ford ✔ ✔ ✔ ✔
GM ✔ ✔ ✔ ✔ ✔ ✔
Hyundai / Kia ✔ ✔ ✔ ✔
JLR ✔ ✔No vehicle
production in Americas
✔
Mercedes ✔ ✔ ✔ ✔ ✔ ✔
Porsche ✔ ✔ ✔ ✔ ✔No vehicle production
No vehicle production
Renault ✔ ✔ ✔ ✔ ✔
Seat ✔ ✔ ✔ ✔No vehicle production
No vehicle production
VW ✔ ✔ ✔ ✔ ✔ ✔ ✔
• Average relationship duration with top seven OEM customers of ~40 years
• Long term collaborative relationships with 14 of the top 15 global OEM groups
• Strong presence in premium segment
Source: Company data
2 Strategic long-standing customer relationships with leading global OEMs
23 Source: Company data
Global footprint with local presence in all major vehicle production regions
● 47 manufacturing facilities1
● 16 countries
● 25 development, project management and sales centers
● 11 logistics centers
● Workforce of 22k+
Expansion Post Acquisition
● Global footprint, aligned withthat of customers
– one of very few players in its segments with global capability
– ability to supply to global platforms locally
● Customer proximity with production sites near OEM assembly plants
– delivery on “Just-in-time" and Just-in-sequence“ basis
– efficient inventory management
– high switching costs for customers
● Modern facilities with high level of automation
● Continued investment in the footprint
– resources to fund new orderswith significant up-front capex
Key figures: No. of plants per countryFY 16 vs FY 12
● Since FY12, the SMG group has set up 8 manufacturing facilities (5 for SMR, and 3 for SMP), with 4 additional facilities currently under construction
SMRP B.V. advantages
1 Inclusive of 4 plants that are currently under construction, and 5 plants that are currently owned through joint ventures
1 2
78
5
71
1
1
1
2
2
1
1
1
1
2
2
2
3
3
3
0
1
4
44
7
2
4
FY12 FY16
Mexico
China
India
Thailand
Brasil
Hungary
Slovakia
UK
Australia
Korea
France
Portugal
Germany
Spain
USA
36
47
Well invested global footprint …3
24
3.7
5.8
0
2
4
6
8
CY 2015 CY 2020
… and a focus on emerging markets3
Breakdown of FY16 capital expenditure by regionLight vehicle production outlook in selected key emerging markets1
Growing presence in key markets for global light vehicle production growth
Fastest growing major production country globally
Emerging markets,
58%Europe,
18%
USA, 13%
Others, 11%
€231m3.4
5.1
-1
1
3
5
7
CY 2015 CY 2020
24.0
30.8
0
10
20
30
40
CY 2015 CY 2020
6.88.7
-1
4
9
14
CY 2015 CY 2020
China Central and Eastern Europe 2
Key growth hub in Americas with strongpipeline of new plant openings by global
OEMs
Accounting for 40% of total global production volume growth in 2015-
20E
Eastern Europe continuing to gain share of total European production due to
lower cost base
India Mexico
Vehicles (m) Vehicles (m)
Vehicles (m) Vehicles (m)
● Commenced production in following Greenfield / Brownfield plants:
– Foshan, China – SMP
– Chongqing, China – SMR
● Greenfield Plants recently completed (SOP3 CY2016 – under ramp up)
– Beijing, China – SMP
– Zitlaltepec, Mexico – SMP
● Greenfield Plants under construction (SOP3 CY2018)
– Kekscemet, Hungary – SMP
– Tuscaloosa, Alabama – SMP
Recent investments in expansion in key growth markets
Notes:1. Source: LMC data2. Does not include Russia and Commonwealth of Independent States 3. SOP: Start of Production
25
Light transmissive metal coatings
Environment-friendly and highly
durable chrome
Automotive Innovation Advanced Materials and Surfaces
Translucent metal surfaces for integration of light for night branding
Surround view monitors which combine enhanced visibility with intelligent assistance features
Noise-less actuator solutions based on memory-shape alloy technology
Suitable for multiple market
segments
Intelligent Electronic Mirrors
Specialized high-performance cameras and expertise for package solutions
Highest quality displays for best visibility and augmented information
Integrated intelligence for object detection and lane recognition
Display integration by interior specialist SMP
Digital cockpits with integrated vision system monitors and augmented information
• Increasing R&D focus on likely disruptive trend towards autonomous driving
• Solutions for enhanced safety, ergonomics, performance, aesthetics
• New, proprietary digital image processing technology underpinning introduction of new high value solutions
• Intelligent Electronic Mirrors (Currently being legalized in many countries)
• New generation camera system • Advanced driver assistance features
• R&D focus of the group is driven by our shareholders with SMIL acting as an incubator of ideas with close to 1000 patents
Motherson Innovations
4 Proven R&D capabilities and a track record of innovation
26
28%
5%
14%10%
8%
8%
5%
5%
4%2%
2%9%
Audi26%
Daimler8%
VW12%
Seat9%
Hyundai/Kia8%
BMW9%
Porsche5%
Renault /Nissan5%
Ford5%
GM3%
JLR2%
Others 8%
High revenue visibility, underpinned by a strong track record of repeat business and diversified Order Book
289
FY12 FY16 FY17E
• New Orders worth Euro 8.8 Billionduring FY16 (including Daimlerorder)
• High revenue visibility via long-termagreements of at least 5 years
• High repeat business based on OEMrelationship, collaborative R&D andfootprint in customer proximity andprior operating track record
Customer diversification and geographical split
Improving diversification of revenue base
Growing order book1 (€bn)
7.7
10.8
13.5
FY-14 FY-15 FY-16
Tho
usa
nd
s
No. of vehicle model programs supplied
• >600 vehicle model programs withlimited dependence on individualorders
• Order book well diversified acrosscustomers and geography with:
• Increasing proportion of salesoutside of Europe, supportedby new plant openings in Americasand Asia through 2016
• Continue to improve customerdiversification
1Orderbook: expected sales that are expected to be recorded for vehicle programs that we have been awarded by OEMs but which are not yet in production
>600>650
Note: March fiscal year endSource: Company data and estimates
FY 16
5
Germany38%
Spain18%
UK4%
Rest of Europe
12%
Brazil2%
America (Excl Brasil)10%
China6%
APAC (Excl China)10%
FY 15
FY 16
27
• SMG Overview
• SMRP BV Overview
• SMRP BV Key Strengths
• SMRP BV Financial Overview
28
Adjusted EBITDA (€m)
1,082 1,238 1,396
1,9162,246
2,618
2,9973,484
4,013
FY-14 FY-15 FY-16SMR SMP
Revenue (€m)
16.2% 15.2%% growth
101 121 145
102124
168204
245
314
FY-14 FY-15 FY-16SMR SMP
7.0% 7.8%% margin 6.8%
• Revenue growth mainly driven by:
– New orders won
– Ramp-up of new plants in Germany and full year contribution from SMIA acquisition post consolidation
– Strong market demand in USA, Mexico, Germany & Spain
• Strong order book of €13.5bn provides high top-line visibility. Healthy mix of repeat business and penetration into new geographies enhances resilience of the underlying business
• EBITDA and margin growth mainly driven by:
– Revenue increase
– Improved manufacturing efficiencies
– Improved product mix
Track record of profitable growth.
29
Revenue & EBITDA.
For the quarter ended June 30, 2016
SMRP BV. +11% +13% +7%
+24% +34% +11%
Revenue.
Adjusted EBITDA %
to Revenue.
SMP. SMR.
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
Q1 15-16 Q1 16-17
1,0
01
.8
1,1
10
.1
€M
io
-
150.0
300.0
450.0
600.0
750.0
Q1 15-16 Q1 16-17
65
2.1
73
7.0
€M
io -
100.0
200.0
300.0
400.0
Q1 15-16 Q1 16-17
35
0.1
37
3.7
€M
io -
25.0
50.0
75.0
100.0
Q1 15-16 Q1 16-17
67
.5 8
3.6
€M
io
6.7%
7.5%
-
10.0
20.0
30.0
40.0
50.0
Q1 15-16 Q1 16-17
37
.9
50
.7
€M
io
5.8%
6.9%
-
10.0
20.0
30.0
40.0
Q1 15-16 Q1 16-17
29
.6
32
.9
€M
io
8.5%
8.8%
30
Hungary25%
USA24%
Germany 18%
Mexico17%
China4%
Spain3%
Others9%
Expenditure on new facilities/expansion – €117.6 million (approx. 72%)
Q1 FY 17.
€47 Million
60%
Growth Capex
€28 Million
Hungary12%
USA13%
Germany 14%
Mexico40%
China6%
Spain4%
Others11%
FY 16.
€231 Million
67%
Growth Capex
€155 Million
For Fiscal year ended March 31, 2016 For three months ended June 30, 2016
Capital expenditure.
31
Cash & Debt Status.
Cash.
Net debt & leverage.
Gross debt.
30.06.15 31.03.16 30.06.16
RCF 1 11.3 58.0 2.9
Finance Lease 15.3 13.4 12.3
Working Capital 21.6 26.7 26.8
Term Loan 13.9 10.7 9.9
HY Bond 584.2 585.7 852.2
-
100
200
300
400
500
600
700
800
900
1,000
€M
illio
ns
904.0
694.5 646.3
168.6 192.5
336.8
30.06.15 31.03.16 30.06.16
€M
illio
n
477.7 502.0 567.3
2.0 1.8 1.9
30.06.15 31.03.16 30.06.16
€M
illio
n
Key Highlights Q1 FY 17
• Issued USD 300 Mn 4.875% Senior Secured Notes (due 2021)
• Issued USD 100 Mn additional Senior Secured Notes in August 2016 as
tap to above issue at effective yield of approx. 4.4%
• Increased liquidity and funds to capitalise on growth opportunity
32
Available Liquidity.
Leverage Ratio.
€ in MillionsSanctioned
Limit
Utilised as at
June 30, 2016
Liquidity
Available
RCF 1 (including Ancilary facility) 250.0 2.9 247.1
RCF 2 50.0 - 50.0
RCF 3 100.0 - 100.0
Cash and Cash Equivalent 336.8
Total Liquidity Available 733.9
Key Ratios# AllowedStatus As at
June 30, 2016
Status As at
June 30, 2015
Gross Leverage Ratio: Indenture 3.50x 3.0x 2.7x
Net Leverage Ratio : RCF 3.25x 1.9x 2.0x
# Computed as per definitions given in Indeture & RCF agreements
Liquidity Status.As at June 30, 2016
33
360 degrees value creation.
Proudto bepart of.
Customerssuccess.
Investorvalue.
Employeelives.
Partnercollaborations.
Communitystrength.
34
Safe Harbour
Financial information for three months ended June 30, 2016 are taken from unaudited
interim condensed financial statements and for twelve months ended March 31, 2016
are taken from audited consolidated financial statements and financial information for
the twelve month ended March 31, 2014 are taken from the audited combined financial
statements as presented in the offering memorandum dated June 08, 2016 published by
the company while offering $300 Million Senior Secured Notes in June 2016.
This presentation is strictly confidential and may not be copied, published, distributed or
transmitted. The information in this presentation is being provided by Samvardhana
Motherson Automotive Systems Group BV (the “Company”).
Any reference in this presentation to “Samvardhana Motherson Automotive Systems
Group BV ” shall mean, collectively, the Company and its subsidiaries.
This presentation has been prepared for informational purposes only. This presentation
does not constitute a prospectus, offering circular or offering memorandum and is not an
offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation
form the basis of, or be relied on in connection with, any contract or investment decision
in relation to any securities.
By attending this presentation you acknowledge that you will be solely responsible for
your own assessment of the market and the market position of the Company and that
you will conduct your own analysis and be solely responsible for forming your own view
of the potential future performance of the business of the Company. In making an
investment decision, investors must rely upon their own examination of the Company
and the financial information.
© Samvardhana Motherson Group
All rights reserved by Samvardhana Motherson Group and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the
prior written consent of Samvardhana Motherson Group and/or its affiliated companies. In case of transfer of information containing Know-how for which copyright or any other intellectual
property right protection may be afforded, Samvardhana Motherson Group and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of
intellectual property right protection.