UNO Minda Limited — Interim / Quarterly Report 2019

Nov 5, 2018

Result Update Presentation Q2 FY19

This presentation and the accompanying slides (the “ Presentation”), has been prepared by Minda Industries 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 be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the auto ancilliary industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

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Quarterly Update Presentation

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Revenue^ (Rs. Cr)

EBITDA (Rs. Cr)

PAT* (Rs. Cr)

Margin (%)

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Quarter 2
+39% +39% +26% EBITDA
PAT
1,522 189 84 12.4% 12.4%
67
1,098 137
6.1%
5.5%
Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19
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+44% +51% EBITDA
H1 +47%
PAT
2,952 359 165 12.2%
11.6%
2,044 238 112
5.5% 5.6%
H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19
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1,522
45
25
33
16
21
61
223
1,098
Q2 FY18 MRPL (SW) MIL Stand. (SW+L) MKAWL (OTH) MJCL (OTH) Rinder (L) MDSL MITIL + OTH Q2 FY19
2,952
89
54
56
41
81
155
432
2,044
H1 FY18 MRPL (SW) MIL Stand. (SW+L) MKAWL (OTH) MJCL (OTH) Rinder (L) MDSL MITIL + OTH H1 FY19
Quarter 2
H1
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Revenue Q2 FY18 Q2 FY19
26.3% 26.7%
31.2%
39.8%
Switches
11.8%
15.2%
Lighting
27.3%
21.7%
EBITDA Q2 FY18 Q2 FY19 Acoustics
28.1%
40.4%
34.6%
42.8%
Others
19.3%
5.8%
9.8% 19.2%
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Q2 FY19 Acoustics
40.4%
34.6%
Others
5.8%
19.2%
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Revenue H1 FY18
24.9%
31.5%
16.3%
27.3%
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EBITDA H1 FY18
29.5%
39.4%
20.0%
11.2%
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H1 FY19
24.7%
40.8%
Switches
12.8%
Lighting
21.7%
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H1 FY19 Acoustics
34.4% 41.3%
Others
7.9%
16.4%
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Quarter 2
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H1
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Geography-wise Breakup
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Channel-wise Breakup
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Segment -wise Breakup
10%
16%
44%
56%
84%
90%
India International OEM Replacement 2/3 W 4 W
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10%
90%
OEM Replacement
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16%
84%
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46%
54%
2/3 W 4 W
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India International

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Group Consolidation Status: (₹ Cr)

Group Consolidation Update:

• TG Minda has become a Joint venture company by September 28, 2018.

• TG Minda is among leading players in Air Bag business in India.

• MIL‘s 2 wheeler lighting business has been hived off to Rinder India Private Limited (100% subsidiary) with effect from 30th June 2018,.

• Hence higher growth in Rinder India Sales

i-SYS RTS Acquistion Update:

• Acquisition completed on September 12, 2018. It is now as Subsidiary of MIL, has been consolidated in this quarter for 18 days

Sr. No.	Company	Effective Date	Consideration	Consideration	Consideration	Consideration	Revenue
			FY16	FY17	FY18	FY19	FY18
1	ASEAN (51%)	Jul 2015	26	-	-	-	206
2	MJCL (50%)	Aug 2015	14	-	-	-	274
3	Kosei Minda (30%)	Mar 2016	12	-	-	-	216
4	Minda TG (51%)	Mar 2016	19	-	-	-	52
5	Roki Minda (49%)	Oct 2016	-	43	-	-	342
6	ASEAN (49%)	Apr 2017	-	-	29	-	-
7	MI Torica (60%)	Apr2018	-	-	8	-	253
8	MRPL (24%)	Jan 2018	-	-	95	-	728
9	D 10 Minda (50%)	Jan 2018	-	-	26	-	343
10	TG Minda (48%)	Oct-2018			20	137	481
Total			71	43	178	137	2,895

Group Consolidation is ~90% completed, remaining to be completed in FY 2018-19

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• 2 Wheelers Alloy Wheels

• A new Project for alloy wheel has been approved to be set up for 2 Wheeler OEMs

• The expected outlay for the first phase of the project is Rs300 cr

• The first line is targeted to achieve the SOP by end of FY2019-20

• The plant will be located in Maharashtra  Capacity: 300,000 wheels per month  Rationale

• Import Substitution opportunity: ~60% of the industry requirement is imported.

• Imports not attractive due to duty 15% on imports and appreciating USD

• Need for localization for improved reliability

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• Controller & Telematics

• A new Project for controller and telematics for a total outlay Rs 80 cr over next 12 months

• This will be business division of MIL and will operate in tandem with i-SYS to maximize synergies

• The Project is expected to be commissioned in end of 2019-20

• Rationale  The notification making AIS 140 regulation mandatory for all public transport and commercial vehicles has been advanced by three months i.e., with effect from January 01, 2019.

• Controllers will witness increased demand with rise in electronic content & premiumization

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Particulars (Rs. Cr)	Q2 FY19	Q2 FY18 YoY %	Q1 FY19	QoQ %	H1 FY19	H1 FY18 YoY %
Revenue from Operations (Net of Excise)	1,521.7	1,098.4 39%	1,429.8	6%	2,951.5	2,043.5 44%
Raw Material Employee Cost Other Expenses	937.6	686.3 138.5 137.0	882.5 188.6 188.7		1,820.1	1,270.6 268.9 266.1
	195.3				383.9
	199.5				388.2
EBITDA EBITDA Margin	189.3	136.6 39% 12.4% 1bps	170.1 11.9%	11% 55bps	359.4	238.0 51% 11.6% 53bps
	12.4%				12.2%
Other Income Depreciation	4.8	4.4 38.3	6.5 49.3		11.3	13.3 74.0
	56.1				105.4
EBIT EBIT Margin	138.0	102.8 34% 9.4% -29bps	127.3 8.9%	8% 17bps	265.3	177.2 50% 8.7% 31bps
	9.1%				9.0%
Finance Cost	15.1	6.3	13.2		28.2	14.2
Profit before Share of Profit/Loss of JVs and Tax PBT Margin	123.0	96.5 27% 8.8% -70bps	114.1 8.0%	8% 10bps	237.1	163.1 45% 8.0% 5bps
	8.1%				8.0%
Tax	38.7	29.7	33.6		72.3	50.9
Profit before Share of Profit/Loss of JVs	84.2	66.8 26%	80.5	5%	164.7	112.2 47%
Share of Profit/Loss of JVs	4.5	6.5	4.1		8.7	12.7
Net profit/(loss) after share of profit/(loss) of associates / joint ventures (A) PAT Margin%	88.8	73.3 21% 6.7% -84bps	84.6 5.9%	5% -8bps	173.4	124.8 39% 6.1% -23bps
	5.8%				5.9%
PAT attributable to: - Owners of MIL - Non Controlling Interests Other Comprehensive Income		67.4 8% 5.9 1.4	70.1 14.6 2.5	4%		115.3 24% 9.6 1.8
	72.7				142.8
	16.1				30.6
	4.4				6.8
Total Comprehensive Income for MIL TCI Margin%	77.1	68.9 12% 6.3% -120bps	72.5 5.1%	6% -1bps	149.6	117.1 28% 5.7% -66bps
	5.1%				5.1%
Total Comprehensive Income for Non Controlling Interests	16.2	17.3	14.6		30.8	9.6

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ASSETS	**30th Sept., 2018 **	31st Mar., 2018
Non-current assets Property, plant and equipment Capital work-in-progress Other intangible assets Intangible assets under development Goodwill on Consolidation Financial assets (i) Investments (ii) Loans (iii) Others Deferred tax assets (net) Other tax assets Other non-current assets
	1,426.0	1,199.4
	134.3	192.1
	46.5	39.3
	22.5	18.7
	166.1	111.8
	334.6	155.2
	17.6	14.5
	4.3	16.8
	7.4	18.6
	32.8	31.2
	63.8	40.4
Sub-total - Non-Current Assets	2,255.9	1,838.0
Current assets Inventories Financial assets (i) Trade receivables (ii) Cash and cash equivalents (iii) Bank balances other than Cash and Cash equivalents above (iv) Loans (v) Other financial assets Other current assets
	570.1	417.5
	983.0	789.7
	100.7	125.6
	8.9	33.9
	4.0	1.6
	34.3	18.0
	153.3	140.7
Sub-total- Current Assets	1,854.2	1,527.1
TOTAL- ASSETS	4,110.1	3,365.1

EQUITY AND LIABILITIES	30th Sept., 2018	31st Mar., 2018
Equity Equity Share capital Other equity Non-ControllingInterest
	52.4	17.4
	1,535.2	1,374.3
	243.5	211.0
Sub-total - Shareholders' funds	1,831.1	1,602.7
LIABILITIES Non-current liabilities Financial liabilities (i) Borrowings (ii) Other financial liabilities Provisions
	437.9	240.0
	81.0	51.5
	74.6	103.8
Sub-total - Non-current liabilities	593.5	395.3
Current liabilities Financial liabilities (i) Borrowings (ii) Trade payables (iii) Other financial liabilities Other current liabilities Provisions Current tax liabilities(net)
	404.2	302.8
	979.5	798.4
	184.4	155.4
	96.6	91.8
	20.9	14.8
	-	3.8
Sub-total - Current liabilities	1,685.5	1,367.1
TOTAL - EQUITY AND LIABILITIES	4,110.1	3,365.1

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For further information, please contact:

Company : Investor Relations Advisors : Minda Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN : L74899DL1992PLC050333 CIN : U74140MH2010PTC204285 Mr. Tripurari Kumar Mr. Jigar Kavaiya DGM Strategy & Finance +91 99206 02034 tripurarik@mindagroup.com jigar.kavaiya@sgapl.net www.unominda.com www.sgapl.net

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