UNO Minda Limited — Investor Presentation 2020

Nov 10, 2020

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Minda Industries Ltd Investor Presentation – November 2020

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Safe Harbor

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

Performance Highlights for the Q2 2021

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Favourable Factors Successful completion of Rights issue Credit rating reaffirm to AA long term and A1+ Short term

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Un-Favourable Factors Delay in commissioning of plants by 4-6 months for 2W alloy wheel and Sensors

Favourable demand environment

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Consolidated Financial Highlights

Revenue (Rs. Cr)

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8%
1,360 1,465
Q2 FY20 Q2 FY21
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PAT* (Rs. Cr)

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63%
81
49
Q2 FY20 Q2 FY21
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EBITDA (Rs. Cr)

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33%
215
162
81
74 18
24
116
64
Q2 FY20 Q2 FY21
PBT Interest Depreciation
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Margin (%)

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14.71%
11.90%
5.52%
3.64%
Q2 FY20 Q2 FY21
EBITDA PAT
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• PAT = PAT ( MIL Share )

Revenue Bridge

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Rs. Crs
1,465
1,360 82 51 8 -14 (53) -22
Q2 FY20 Others Lighting Acoustics Switch Light Metal Q2 FY21
2,799
-27
-104
-170
-195
-421 1,882
H1FY20 Others Acoustics Lighting Light Metal Switch H1FY21
Quarter 2
Half Year
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Business wise Revenue Mix

Revenue – Q2FY20

Revenue – Q2FY21

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Others
Others
14%
19%
Switches
Switches 32%
36%
LMT
15%
LMT
12%
Acoustics
12%
Acoustics
11%
Lighting Lighting
23% 25%
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Business Review

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2W Switch: Higher kit value on account of new feature and BS-VI change over. Switches 01 4W: New Product : Sun Roof, Gear Shifters and Neutral Switches been localised (Import substitution) 2W Lighting: New orders from RE, E-Bikes TVS, Bajaj and Honda Lighting 02 4W Lighting: MSIL new SUV Model LED tail lamp with rear facia Delvis : New orders from Daimler and Audi Acoustics 03 First order for Electronic horn for M&M PV division LPDC Line to start commissioning to be ready for customer inspection by Q4 Light Metal Technology 04 2W alloy wheel plant is operational (Two Lines) Others 05 Started supply of Wheel speed Sensor has been started for Korean customers ( In Korea)

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Revenue Mix – Q2 FY21

Geography-wise Breakup

India International

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17%
83%
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Channel-wise Breakup

OEM Replacement

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14%
86%
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Segment -wise Breakup

2Wheeler 4Wheeler

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52%
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Diversification across Categories and Geographies

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Group Consolidation update

Toyoda Gosei Japan (TG) and Minda are consolidating their business under one umbrella.

• a. Minda has already increased its holding in TGMINDA to 49.9% in Sep-18. TGMINDA has acquired 95% stake in TGSIN from TG Japan in Sep-20.

• b. Board has in principle approved the merger of MINDATG into TGMINDA.

• c. To ensure that the shareholding is identical, Board has approved the sale of 1.1% stake in MINDATG held by MIL to TG for a consideration of Rs.10.05 per share amounting to 0.56 Cr. subsequently, line by line consolidation will be discontinued as it will become an associate company.

~ Board has approved the purchase of 13% stake in Tokairika Minda Pvt. Ltd.(TRMN) from Minda Finance Limited as part of group consolidation exercise for consideration of Rs. 10.04 per share amounting to Rs. 22.59 Cr.

• a. TRMN will become an associate company of MIL and will consolidate by Equity method.

• b. TRMN is engaged in business of Seat Belts, Gear Sifters, Locks and safety devices. For FY 20 TRMN reported a turnover of Rs. 600 Cr.

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Strategic Business Update

Harita Seating NCLT Delhi hearing is scheduled November 16, 2020. All other approvals in place Sytems Merger Acquisition-cum- Scheme filed with the exchanges for their feedback. Queries have been Merger of Minda responded iConnect Issue size Rs.242.8 Cr, Issue Subscription: 120% Successful Closure of Rights Issue End Use completed as per Letter of offer of Rights Issue

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Consolidated Profit & Loss Statement

Particulars(Rs. Cr)	Q2 FY21	Q2 FY20	YoY %	Q1 FY21	QoQ %	H1FY21	H1FY20	YoY %
Revenue from Operations(Net of Excise)	1,465.04	1,359.57	8%	417.11	251%	1,882.15	2,799.32	-33%
Raw Material Employee Cost Other Expenses	881.33	814.71 208.39 174.86		241.71		1,123.04	1,686.87
	204.06			166.31		370.37	423.52
	164.21			80.58		244.79	355.12
EBITDA EBITDA Margin	215.44	161.61 11.89%	33%	-71.49	-401%	143.95	333.81	-57%
	14.71%			-17.14%		7.65%	11.92%
Other Income Depreciation	12.53	5.07 73.95		3.73		16.26	11.99
	81.02			68.21		149.23	145.15
EBIT EBIT Margin	146.95	92.73 6.82%	58%	-135.97	-208%	10.98	200.65	-95%
	10.03%			-32.60%		0.58%	7.17%
Finance Cost	18.11	23.84		19.58		37.69	47.65
Profit before Share of Profit/Loss of JVs and Tax PBT Margin	128.84	68.89 5.07%	87%	-155.55	-183%	-26.71	153	-117%
	8.79%			-37.29%		-1.42%	5.47%
Exceptional Item
Tax	44.36	17.16		-36.81		7.55	44.84
Profit before Share of Profit/Loss of JVs	84.48	51.73	63%	-118.74	-171%	-34.26	108.16	-132%
Share of Profit/Loss of JVs	10.02	6.35		-16.21		-6.19	12.25
Net profit/(loss) after share of profit/(loss) of associates / joint ventures (A) PAT Margin %	94.5	58.08 4.27%	63%	-134.95	-170%	-40.45	120.41	-134%
	6.45%			-32.35%		-2.15%	4.30%
PAT attributable to: - Owners of MIL - Non Controlling Interests Other Comprehensive Income		49.44 8.65 -2.66	63%		-168%			-136%
	80.83			-118.33		-37.5	102.92
	13.68			-16.62		-2.94	17.5
	-10.6			13		2.4	-3.13
Total Comprehensive Income for MIL TCI Margin %	69.76	47.07 3.46%	48%	-105.3	-166%	-35.54	100.04	-136%
	4.76%			-25.25%		-1.89%	3.57%
Total Comprehensive Income for Non ControllingInterests	14.15	8.36		-16.65		-2.5	17.25

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Consolidated Balance Sheet

Particulars	As at 30-Sep-2020 (Unaudited)	As at 31-Mar-20 (Audited)
ASSETS
1. Non-current assets
Property, Plant and Equipment	1,781.94	1,643.36
Capital work-in-progress	196.14	337.05
Right-of-use assets	123.62	135.82
Intangible Assets	203.10	214.72
Intangible Assets Under Development Goodwill on Consolidation	25.19 202.06	20.00 202.06
Financial Assets
(i) Investments	408.31	372.16
(ii) Loans	22.21	13.34
(iii) Others	9.76	10.27
Deferred tax assets (net)	-	-
Other Tax Assets Other Non-currentAssets	58.22 55.25	42.52 50.60
Total- Non current asset	3,085.80	3,041.90
2. Current Assets
Inventories Financial Assets (i) Trade receivables (ii) Cash and cash equivalents	510.02 844.39 246.23	555.26 726.41 250.98
(iii) Bank balance other than those included in cash and cash equivalents	52.09	76.86
(iv) Loans	5.90	5.70
(v) Others Current Financial Assets Othercurrent assets	28.03 157.00	34.89 139.36
Total-Current asset	1,843.66	1,789.46
3. Assets held for sale		7.49
TOTAL ASSETS	4,929.46	4,838.85

Particulars	As at 30-Sep-2020 (Unaudited)	As at 31-Mar-20 (Audited)
EQUITY AND LIABILITIES
Equity
Equity share capital	54.39	52.44
Other Equity	1,970.63	1,763.28
Equity attributable to owners of the Company	2,025.02	1,815.72
Non-ControllingInterest	284.21	282.84
Total Equity	2,309.23	2,098.56
LIABILITIES
1. Non-current liabilities
Financial Liabilities
(i) Borrowings	738.22	780.33
(ii) Lease liabilities	88.20	97.93
(iii) Other financial liabilities	77.98	75.14
Provisions	124.96	117.45
Deferred tax liabilitynet	9.90	13.53
Total- Non current liabilities	1,039.26	1,084.38
2. Current Liabilities
Financial Liabilities
(i) Borrowings	229.77	217.14
(ii) Lease liabilities	20.27	18.29
(iii) Trade payables
(a) Total outstanding dues of micro & small enterprises	99.71	87.97
(b) Total outstanding dues of creditors other than micro & small enterprises	748.74	874.82
(iv) Other financial liabilities	309.02	312.13
Other current liabilities	136.64	108.83
Provisions	36.84	32.39
Total-Current liabilities	1,580.99	**1,651.57 **
Liabilities related to assets held for sale	-	**4.34 **
TOTAL Equity and Liabilities	4,929.46	4,838.85

Consolidated Cash Flow Statement

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Particulars (Rs in Cr)	Half Year Ended 30-Sep-20	Half Year Ended 30-Sep-19
PBT	-26.71	153.00
Adjustments	179.15	196.27
Operating profit before working capital changes	152.44	349.27
Changes in working capital	-178.03	91.01
Cash generated from operations	-25.59	440.28
Direct taxes paid (net of refund)	-25.51	-42.64
Net Cash from Operating Activities	-51.10	397.64
Net Cash from Investing Activities	-160.67	-294.24
Net Cash from Financing Activities	206.80	-81.85
Net Change in cash and cash equivalents	-4.97	21.55
Foreign currency translation adjustment	0.23	0.62
Cash and cash equivalents pursuant to acquisition	0.00	0.00
Cash and cash equivalents as at beginning	250.99	92.77
Cash and cash equivalents as at closing	246.25	114.94

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Contact Us

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 GM Finance +91 99206 02034 tripurarik@mindagroup.com jigar.kavaiya@sgapl.net www.unominda.com www.sgapl.net