UNO Minda Limited — Investor Presentation 2020

Feb 6, 2020

Minda Industries Ltd Investor Presentation – February 2020

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.

Quarterly Update Presentation

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Performance Highlights for the Quarter

• Improved performance from leading 4W OEM's .
• Successful closure of Delvis Acquisition
• Entered into LPDC Technology for manufacturing of Alloy Wheel for PVs

Favourable Factors Un-Favourable Factors

Lower capacity utilization due to lower demand from select OEMs

Consolidated Financial Highlights

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Revenue Bridge – Q3 FY & 9MFY20

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Business wise Revenue Mix

Revenue – Q3FY19

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Diversification across Categories and Geographies

Mergers & Acquisitions: Status Update

DELVIS Acquisition	Acquisitioncompleted on December 12, 2019. It has been consolidated for 19days in Q3 2020
HaritaSeatingSytemsMerger	NCLT final hearing is scheduled on February 25, 2020. Shareholder and Creditorapproval has been received
Merger of 4 WOS	Shareholder and creditor approved. NCLT final hearing is proposed on March 16,2020.
Acquisition-cumMerger of MindaiConnect	Board has approved the Acquisition and Amalgamation scheme to Merge Minda Iconnectprivate ltd.(MIPL) into Minda Industries Ltd (MIL).

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Shareholding Pattern

Consolidated Profit & Loss Statement

Particulars (Rs. Cr)	Q3 FY20	Q3 FY19	YoY %	Q2 FY20	QoQ %	FY19
Revenuefrom Operations (Net of Excise)	1,326.85	1,470.09	-10%	1,359.58	-2%	5,908.09
Raw Material	795.36	903.37		814.71		3,622.48
Employee Cost	208.88	204.92		208.39		791.29
Other Expenses	159.24	181.38		174.86		769.14
EBITDA	163.37	180.42	-9%	161.62	1%	725.18
EBITDA Margin	12.31%	12.27%	4 bps	11.89%	42 bps	12.27%
Other Income	11.3	2.7		5.07		27.03
Depreciation	75.06	60.83		73.95		234.38
EBIT	99.61	122.29	-19%	92.74	7%	517.83
EBIT Margin	7.51%	8.32%	(81) bps	6.82%	69 bps	8.76%
Finance Cost	21.58	14.51		23.84		63.15
Profit before Share of Profit/Loss of JVs and Tax	78.03	107.78	-28%	68.90	13%	454.68
PBT Margin	5.88%	7.33%		5.07%		7.70%
Exceptional Item	-5.17	0.00		0.00		0.00
Tax	19.4	28.34		17.16		134.07
Profit before Share of Profit/Loss of JVs	53.46	79.44	-33%	51.74	3%	320.61
Share of Profit/Loss of JVs	1.00	1.88		6.35		18.87
Net profit/(loss) after share of profit/(loss) of associates / joint ventures (A)	54.46	81.32		58.09		339.48
PAT Margin %	4.10%	5.53%	(143) bps	4.27%	(17) bps	5.75%
PAT attributable to:
-Owners of MIL	44.74	69.35	-35%	49.44	-10%	285.62
-Non Controlling Interests	9.72	11.97		8.65		53.86
Other Comprehensive Income	-0.31	-3.61		-2.66		-0.68
Total Comprehensive Income for MIL	44.4	65.83	-33%	47.07	-6%	284.91
TCI Margin %	3.35%	4.48%		3.46%		4.82%
Total Comprehensive Income for Non Controlling Interests	9.75	11.88		8.36		53.89

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About Us

Leadership Team

BOARD OF DIRECTORS TOP MANAGEMENT TEAM

Mr. Nirmal K Minda Chairman & Managing Director

Mr. Anand K Minda

Mr. Sunil Bohra ED & Group CFO

Mr. Anand K Minda Director & CEO – Aftermarket Domain

Mr. Rajiv Kapoor ED & Group HR Head

Mr. Pradeep Tiwari ED & CEO , International Business

Mr. Satish Sekhri

Mr. K K Jalan

Mrs. Pravin Tripathi

Ms. Paridhi Minda

Dr. Chandan Chowdhary

Mr. J.K. Menon ED, Group Chief Strategy Officer

Mr. Naveesh Garg ED & Group Chief Marketing Officer

Mr. Sudhir Kashyap ED & CEO, Electrical & Electronics Domain

Mr. Amit Jain ED & CEO – Adv. Electronics Domain & Group Chief Technology Officer

Mr. Ravi Mehra ED & CEO , Interior, Controls & Safety Domain

Mr. Rajeev Gandotra ED & CEO – Body & Structure Domain

Mr. Kundan K Jha ED & CEO, Light Metal Technology Domain

Mr. Amit Gupta President, Group Business Excellence

Strategy for Growth

Regulatory Norms BS-VI expected implementation by 2020 will benefit UNO MINDA as it ready with products which are likely to see strong demand 1. Sensors (BS VI) and Engine related Sensors in association with Sensata, US 2. Advance Filtration and Canisters 3. On Board Diagnostics (OBD) 4. Seat Belts (ADAS) 3. Alloy Wheels 5. Telematics 7. AMT Premiumization and Kit Value Electronification and Electric Vehicles (EVs) Regulatory, Emission Norms Enhanced Safety NCAP and Crash Test Norms are ensuring a swift migration to a safe car. 1. Air Bags & Seat belts 2. Reverse parking Sensors

1. Combi Braking Systems

Premiumization

Indian Automobile market is likely to undergo premiumization of vehicles and UNO MINDA is Poised to strongly benefit.

• 1. LEDs replacing convention lamps
• 1. Advanced Driving Assistance System
• 1. Infotainment System
• 1. Wireless Chargers

Electronification & EVs

UNO MINDA has set up CREAT for Advanced research engineering and advanced technologies focused to capture

• 1. Cockpit Electronics
• 1. Body Exterior & advanced Lighting Air Bags & Seat belts
• 1. Controllers and Sensors
• 1. EV technologies

CONNECTED	COMFORT &CONVINIENCE	SAFETY &SECURITY	SHARED MOBILITY	REGULATIONS	GREENTECHNOLOGY
Fleet Management,Apps, UBI	Larger Displays,Infotainment	Collision Warning &Avoidance	Car Sharing, BikeSharing, On DemandRide	BS-6 : EmissionStandards-Bharat StageVI ( BS-6)	Hybrid Electric Vehicle
Telematics, FOTA, eCall	Fully AutomaticTempratureControl,TPMS, HUD	Emergency Braking,Lane Keeping, Blindspot	Cost & ownership Model	AIS 140, ITS	Battery Electric Vehicle
V2X, V2I, Gateway,Smart Home	Around View Monitor,Ultrasonic Sensor	Airbag, ESP	Durable components &faster replacement	Pedestrian Protection,Collision Protection	Charing Infrastructure

ABS

Future Technology Areas for UNOMINDA

Body, Exterior and Safety Technologies Cockpit Electronics and Advanced Technologies

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Group Technical Centre Overview

• First Flagship Technical Center of UNOMINDA Group
• Located in Pune, Phase II in Gurgaon
• 170+ Engineers
• Center of Competency for Hardware & Software
• Electronics Lab functional since Oct 2018

Hardware, Software & Test

• Hardware & Software for existing products
• New Products end to end

Center of Excellence

Material Sciences, Optics, Surface Coating, EMI/EMC

Pioneer in localization: Through JVs & Associations

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We have partnered with global technology leaders in the respective product segments

Acquisition Lighting Solutions (under Process)

Shareholding Pattern

Strong Balance Sheet:

Building Shareholder Value year on year…

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Growth without stressing the Balance Sheet…

Note: Consolidated Data, * Adjusted ROCE= capital employed less non current Investments in JV and Associates

Business Overview

Advent of EVs: Our Hedged Product Portfolio

							Technologies
S. No		Product Lines	Company Name		BS VI	PEV	BEV
			Approximate timelines	Revenue March 19	Apr-20	2022-25	2025-2030
1		Alternate Fuel Systems	METL	41		X	X
2	Engine &	Air Filtration Systems	RokiMinda		D	D	X
3	Transmission	Canisters	RokiMinda	400	D	D	X
4	Parts	Brake Hoses	MindaTG	92			D
5		Fuel Hoses	MindaTG	92			X
6		Alloy Wheels	MindaKosei	600			
7		Cameras	MFTL, MindaTTE	16			
8	Safety Parts	EA Pad	MKL	18			
9		Steering Wheel with Airbags	TGMN	496			
10		Fuel Caps	MIL	32			X
11		Lamps	MIL-LtgDiv	465		D	D
12		Air Ducts & Washer BottleMKL158		Legend
13	Body Parts	Spoiler	MKL	158				To continue as it is
14		Body Sealings	TGMN	496			
15		4W Switches & HVAC	MRPL	801		D	D
16		Cigar Lighters & Chargers	MRPL	801				XObsolete
17		Wheel Covers	MRPL	801				Positively Impacted
18		Infotainment Systems(CD Tuners, Display Audio & AudioVideo Navigations)	Minda D Ten	98			
19		Speakers	MindaOnkyo	21			
20	Comfort &ConvenienceParts	Reverse Parking Aid Systems &Advanced Driver Assistance Productsand Systems	MindaTTE	16			
21		Sensors	MIL-SAC Div	131	D	D	D
22		Actuators	MIL-SAC Div	131			
23		Controllers	MIL-SAC Div	131		D	D
24		End to End Telematics & ConnectedCar Solutions	MIL Controllers	25			
25		Horns	MIL+ CH	708		D	D
26	Others	Batteries-Lead Acid	MIL-Battery Div	84		D	D

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D To continue with changes

Group product portfolio – 2 Wheeler

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Kit Value* – 2 Wheelers

*Contribution from Group Companies which are not yet consolidated is not included in the Kit Value

Group product portfolio – 4 Wheeler

Kit Value* – 4 Wheeler PVs & Tractor

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*Contribution from Group Companies which are not yet consolidated is not included in the Kit Value *Potential is calculated on basis that all products manufactured by the group is supplied in the vehicle.

Customer led and Customer Oriented: Customer Mix ( FY 2019)

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7%

Note: Consolidated Data

Switching Systems

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Lighting Systems

Acoustic Systems

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Light Metal Technology

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Other Products

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36/6 36 / 43 MDSL : Strong Presence in Replacement Market

Product(Rs.Crs)	FY19After Market Sales	% of total AfterMarket Sales
Switches	179	31%
Lighting	181	32%
Horns	81	14%
Others	132	23%

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Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Historical Financials

Consolidated Profit & Loss Statement

Particulars (Rs. Cr)	FY19	FY18	YoY %
Revenue from Operations (Net of Excise)	5,908.09	4,470.56	32%
Raw Material	3,622.48	2,763.18
Employee Cost	791.29	586.8
Other Expenses	767.35	586.76
EBITDA	726.97	533.82	36%
EBITDA Margin	12.30%	11.94%	45bps
Other Income	25.24	33.35
Depreciation	234.38	164.85
EBIT	517.83	402.32	29%
EBIT Margin	8.76%	9.00%	8bps
Finance Cost	63.15	35.09
Profit before Share of Profit/Loss of JVs and Tax	454.68	367.23	24%
PBT Margin	7.70%	8.21%	-20bps
Exceptional Item		38.24
Tax	134.07	97.69
Profit before Share of Profit/Loss of JVs	320.61	307.78	4%
Share of Profit/Loss of JVs	18.87	23.08
Net profit/(loss) after share of profit/(loss) of associates / joint ventures (A)	339.48	330.86	3%
PAT Margin %	5.75%	7.40%	-40bps
PAT attributable to:
- Owners of MIL	285.62	310.19	-8%
- Non Controlling Interests	53.86	20.67
Other Comprehensive Income	-0.68	5.31
Total Comprehensive Income for MIL	284.91	314.99	-10%
TCI Margin %	4.82%	7.05%	-73bps
Total Comprehensive Income for Non Controlling Interests	53.89	21.18

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Consolidated Balance Sheet

ASSETS	31st March 2019	31st March 2018
1. Non-current assets
Property, Plant and Equipment	1,629.40	1,199.39
Capital work-in-progress	131.52	192.11
Intangible Assets	66.84	39.32
Intangible Assets Under Development	18.61	18.68
Goodwill on Consolidation	164.92	111.79
Financial Assets
(i) Investments	355.58	155.23
(ii) Loans	21.21	14.49
(iii) Others	9.66	16.79
Deferred tax assets (net)	0	18.61
Other Tax Assets	33.05	31.18
Other Non-current Assets	67.1	40.43
Sub-total - Non-Current Assets	2,497.89	1,838.03
2. Current Assets
Inventories	560.97	417.52
Financial Assets
(i) Trade receivables	899.22	789.73
(ii) Cash and cash equivalents	92.77	125.56
(iii) Bank balance other than those included in cash
and cash equivalents	17.29	33.91
(iv) Loans	2.01	1.59
(v) Others Current Financial Assets	22	18.04
Other current assets	138.48	140.74
Sub-total - Current Assets	1,732.74	1,527.08
TOTAL - ASSETS	4,230.63	3,365.11

Liabilities	31st March 2019	31st March 2018
EQUITY AND LIABILITIES
Equity
Equity share capital	52.44	17.41
Other Equity	1651.72	1,374.28
Equity attributable to owners of the Company	1704.16	1,391.69
Non-Controlling Interest	266.71	211.01
Total Equity	1970.87	1,602.70
LIABILITIES
1. Non-current liabilities
Financial Liabilities
(i) Borrowings	606.34	240.04
(ii) Other financial liabilities	75.58	51.46
Provisions	99.64	103.78
Deferred tax liability	0.62
Total- Non current liabilities	782.18	395.28
2. Current Liabilities
Financial Liabilities
(i) Borrowings	349.15	302.81
(ii) Trade payables
(a) Total outstanding dues of micro & smallenterprises	64.61	6.08
(b) Total outstanding dues of crditors other thanmicro & small enterprises	733.21	792.33
(iii) Other financial liabilities	231.15	155.41
Other current liabilities	77.9	91.84
Provisions	21.56	14.83
Current tax liabilities (net)		3.83
Total- Current liabilities	1477.58	1,367.13
TOTAL Equity and Liabilities	4,230.63	3,365.11

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* Dividend payout ratio after considering dividend distribution tax

Awards & Recognitions

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CERTIFICATIONS RECENT AWARDS: 2018-19

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For further information, please contact:

Company :	Investor Relations Advisors:
Minda IndustriesLtd.	Strategic Growth Advisors Pvt. Ltd.
CIN : L74899DL1992PLC050333	CIN : U74140MH2010PTC204285
Mr. TripurariKumar	Mr. Jigar Kavaiya
GM Finance	+91 99206 02034
tripurarik@mindagroup.com	jigar.kavaiya@sgapl.net
www.unominda.com	www.sgapl.net