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Motherson Sumi Systems Limited
November 2007 Together we make it happen
Motherson Sumi Systems Limited
SWS
27.4%
Sojitz
9.7%
FIIs & Mutual
Funds
9.8%
Public
18.7%
Sehgal Family
34.4%
Sumitomo Wiring Systems Ltd. (SWS):
� Subsidiary of Sumitomo Electric Industries , Japan
� The third largest Manufacturer of wiring harnesses in the
world and the second largest in Asia with. Current market
share – about 20 % in the world passenger car market
� Turnover of JP¥ 511.958 billions ( 2006-07)
Sehgal Family
� Started Motherson Group in 1975
� Technical Agreement with Tokai Electric Industries, Japan in 1983 for Manufacturing of wiring Harnesses
� Established Motherson Sumi Systems Ltd. (MSSL ) in JV with SWS in 1986.
� Share holding level 34.5% in individual names and through Motherson Consultancy Pvt. Ltd. (being reverse merged into Samvardhana Motherson Finance Ltd.)
� Group Turnover USD 625 Million (2006-07)
Sojitz Corporation
� One of the leading trading & investment houses of the
world
� Diversified portfolio having 188 Domestic and
409 Overseas affiliates
Shareholding Pattern
As on date
MSSL Subsidiaries & Joint Ventures
India
SCHEFENACKERMOTHERSON LTD.
MSSL
SCHEFENACKERINTERNATIONAL AG
BALDA MOTHERSON SOULTION INDIA LTD.
51%
60%
40%
Sharjah Europe
WOCO MOTHERSON LTD. (FZC)
MSSL MIDEAST (FZE)
MSSL TOOLINGS LTD.(FZE)
MOTHERSON SUMI WIRING SYSTEM LTD. (FZC)
MSSL IRELAND PVT. LTD.(Ireland)
MSSL POLYMERS GmbH(Germany)
MSSL GB LTD. (U.K.)
MOTHERSONSUMI REINER GmbH (Germany)
MSSL ADVANCED POLYMERS S.R.O.(Czech Republic)
GLOBAL ENVIRONMENT MANAGEMENT (FZC)
MSSL MSSL
100%
100%
100%
100%
100%
66.7%
WOCO FRANZ JOSEF WOLF HOLDING GmbH
SUMITOMO WIRING SYSTEMS LTD.
E-COMPOST PTY LTD.
49%
49.99%
100%
100%
33.3%
51%
50.01%
KYUNGSHIN INDUSTRIAL MOTHERSON LTD.
MOTHERSON PUDENZWICKMANN LTD.
WOCO MOTHERSON ELASTOMER LTD.
WOCO MOTHERSON ADVANCED RUBBER TECHNOLOGIES LTD.
56%
33.3%
33.3%
50%
KYUNGSHIN INDUSTRIAL CO.
WILHELM PUDENZ GmbH.WICKMANN WERKE GmbH
WOCO FRANZ JOSEF WOLF HOLDING GmbH
WOCO FRANZ JOSEF WOLF HOLDING GmbH
50%
44%
66.7%
66.7%
49%
MOTHERSON ELECTRICAL WIRES LANKA PVT.LTD.
MSSL
100%
Sri LankaMSSL
Australia
50.01%GLOBAL ENVIRONMENT MANAGEMENT AUSTRALIA PTY. LTD.
CALSONIC KANSEI CORP.
CALSONIC KANSEI MOTHERSON AUTO PRODUCTS LTD.
51%
BALDA AG
49%
80%MOTHERSON ELASTOMERS PTY. LTD.
Presence in India
NOIDA & NCR REGIONKANDLA
BANGALORECHENNAI
PONDICHERRY
NASHIK
� Wiring Harness� Wires � Fuses & Fuse Holders � Tubes� Plastic Molding� Rubber Injection Molding� IP, Door Trim & Bumpers� Automotive Rearview Mirrors� Design Engineering� Injection Molding Tools� IT Solutions� Press Die Design� Cutting Tools� Machining Solutions� Air Compressors� Paint Coating Equipment� Auxiliary Equipment for Injection Molding Machines� Automotive Manufacturing Engineering� Sunroofs� Bus Air Conditioners� Industrial Robots – Sales, Installation & Service
� Rubber Injection Molding
� Wiring Harness� Automotive Manufacturing
Engineering� Sunroofs
� Wiring Harness� Wires � Plastic Molding� Metal Machining
� Wiring Harness� Wires � Plastic Molding� IP, Door Trim & Bumpers� Automotive Rearview Mirrors� Injection Molding Tools� Cabins for Off-Highway Vehicles
� Design Engineering
� MSSL � Group
PUNE
� Plastic Molding
Sales Manufacturing
� Strategic Sourcing
� Rubber Extrusion� Waste Recycling
Systems� Design Engineering
� Wires
� Wiring Harness
� Design Engineering
� Representative Office
� Plastic Molding� Metal Machining� Representative Office
� Wiring Harness� Plastic Molding� Injection Molding Tools� Liquid Silicon Rubber
Injection Molding
� Plastic Molding
� Design Engineering
� Representative Office
� Representative Office
Global Presence
IRELAND UK GERMANY CZECH REPUBLIC
AUSTRIA
SINGAPORE
SRI LANKA
AUSTRALIAMAURITIUS
SHARJAH
USA
� MSSL � Group
INDIAINDIA
Business Area Wise Sales Composition
Rubber &
Metal
10%
Polymer
26%
Wiring
Harness
64%
Wiring Harness Manufacturing
� Backward integration for critical inputs for wiring harnesses such as wires, connectors, terminals, fuses and fuse boxes
� Established customer specific collaborations for Hyundai and DaimlerChrysler
� Consistently having over 65% share of wiring harness market for passenger cars in India
� Direct exports to the customers as well as exporting back to collaborators
� Over 13000 Types of Wiring Harness Produced Annually
� Over 24000 Types of Components Handled in Manufacturing
� 20 Manufacturing Units
� Over 20 Million Wiring Harnesses Produced Annually
Wiring Harness Design
Fuses & Fuse Boxes
Caps & Sleeves
In-house Facilities
Clamps & Binders
Grommets & Seals
Applicators JigsAssembly Boards
Circuit Boards
Material Handling
Process Engineering
Terminals
Connectors
Wires
� Component Design � Tool Manufacturing � Component Manufacturing
India – Noida / Manesar /
Chennai / Pondicherry /
Bangalore
Sharjah
� Over 14,000 Tons of Polymer Processed Annually
� Over 2100 Types of Components Produced
� Over 1160 Million Components Manufactured Annually
� World class Molding Facilities
� Injection, Thermoset, Gas, Compression and Blow Molding
� 14 Component Molding Facilities
� Injection Molding Machines from 20 Tons – 3200 Tons
� Complete In-house Post Processing Facilities including Paint Shop
� Robotic Trimming Operations
Polymer Processing
Germany
Czech Republic
Rubber, Metal and Other Parts
� Manufacturing Locations at Noida, Kandla (SEZ) & Sharjah in Joint Venture With Woco Industrietechnik GmbH (WOCO)
� Acquired the business of Empire Rubber in Australia, engaged in Rubber Mixing & manufacture of Extruded Rubber components
� Supplying Products for Automotive applications, Kitchen appliances, Measuring & Control Technology and Medical Equipment Applications.
� Buy back arrangement with WOCO
Rubber Parts
� Manufacturing Locations at Noida & Chennai
� Specializes in black box designing of automotive rear vision systems
� leading supplier of rear vision systems to major automobile manufacturers in India.
Rear Vision Systems
� Manufacturing locations at Bangalore, Chennai (under construction) & Germany
� Specialisation in high precision machined metal components and assemblies.
� Supplying cooling solutions to leading computer manufacturer & metal components to Tier-I manufactures in Europe
Machined Metal Parts
Providing Full System Solutions
MSSL is providing Full System Solutions to its customers from product design to tooling, molding, manufacture, assembly and supply of Integrated Modules like IP (Dashboard) and Door Trim Modules
Examples
MSSL manufactures most of the plastic parts for Ford Fiesta - bumper to bumper (including bumpers) its value contributions to the Fiesta is among the highest across the vendors for the car.
MSSL has also been a partner for most of these modules right from the design stage undertaking designing & development of Components and assemblies
Moving Towards Modularisation
Automotive MirrorsInjection Molding Tools Aerobin
Rubber & Liquid Silicon Parts Machined MetalProducts
Injection Molded Components & Assemblies Blow Molded Components
Cockpit - Mercedes IP - Fiesta Bumper - Fiesta Door Trim & Interior Trims - Fiesta
AC Housing TV & Monitor Cabinets
IP - Civic
Wiring Harnesses and Related Modules
Increasing Content Per Car
Product Support� Wiring Harness� Fuses & Fuse Holders� Injection Molded Components� Blow Molded Components� Rubber Components� IP, Door Trim & Bumpers� Automotive Rearview Mirrors� Design Engineering Support� Injection Molding Tools� Sunroofs� Bus Air Conditioners
1986 Expanding Range
� Wiring Harness
Increasing presence as a
Full System Solutions Provider
Manufacturing Support� Press Die Design� Cutting Tools� Bimetal band Saws� Machining Solutions� Paint Coating Equipment� Automotive Manufacturing
Engineering� Industrial Robots – Sales,
Installation & Service� HVAC Systems
(Sumi Motherson Group)
352
1000
179 228
0
200
400
600
800
1000
1200
2004-05 2005-06 2006-07 2009-10
US$ in m
illion
Setting New Targets ( as set out in 2005)
Targets set for year 2010
60% of our consolidated turnover should cater to the requirements of our customers outside
India
Have a customer profile where contribution from any individual customer in our turnover shall not be more than 20% of the
total turnover
Make MSSL a Billion Dollar Company
36%
60%
33%29%
0%
10%
20%
30%
40%
50%
60%
70%
2004-05 2005-06 2006-07 2009-10
Percentage 18%
20%
23%
27%
0%
5%
10%
15%
20%
25%
30%
2004-05 2005-06 2006-07 2009-10
Percentage
Already
Achieved
Setting New Targets ( as set out in 2005)
Strive to maintain business ROCE of 40%
Shift our stated dividend policy of 40% payout of the company’s profits to
40% payout of the consolidated Profits
Targets set for year 2010
28%
40%
32%
39%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2004-05 2005-06 2006-07 2009-10
Percentage
32%
40%
29%32%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2004-05 2005-06 2006-07 2009-10Percentage
NORTH INDIA
EAST INDIA
SOUTH INDIA
WEST INDIA
Car Market -Trends & Projections
� All major OEs are planning capacity expansion and making base in India for global exports of small cars
� Global Sourcing of components from India
� Increased complexity of vehicles resulting in more value addition
� Increased focus on modularisation
Growing Faster - Sales
1545
13091,210
990
723
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2002-03 2003-04 2004-05 2005-06 2006-07
Units in '000
Cars & MUV
4581.46
5860.52
3,129
4,384
5,582
6788
9752
0
2,000
4,000
6,000
8,000
10,000
12,000
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08 HY
2007-
08 H1
Rupees in M
illion
MSSL - Domestic
2618.97
3385.36
5524
3368
2,230
1,5151,059
0
1,000
2,000
3,000
4,000
5,000
6,000
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2006-
07 H1
2007-
08 h !
Rupees in M
illion
MSSL – Outside India
7200
9246
15,276
10,156
7,812
5,899
4,188
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2006-
07 H1
2007-
08 HY
Rupees in M
illion
MSSL
CAGR20.91% CAGR
38.20%
CAGR32.87% CAGR
51.13%
Sales Profile 2006-07
India
64%
Outside
India
36%
Others
44%
TATA
3%SWS
3%
M&M
3%
HSCIL
5%
FORD
7%
MARUTI
18%HYUNDAI
9%
SEWS-H
3%
NACCO
3%
TRW
2%
Customer Wise
India Vs Outside India
Focus on Profitability
Profit After Tax
652
840
1295
540
862
1071
312
0
200
400
600
800
1000
1200
1400
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2006-
07 H1
2007-
08 H1
Rs. in M
illion
Profit Before Tax
435
858
1261
1625
671
1019
1130
0
200
400
600
800
1000
1200
1400
1600
1800
2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
2006-
07 H1
2007-
08 H1
Rs. in M
illion
CAGR39.02%
CAGR42.73%
Focus on ROCE
1,138 16092200
28773796
742955
1238
1573
1688
2715
2914
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2002-03 2003-04 2004-05 2005-06 2006-07
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Net Worth Loans FCCB ROCE %
RETURN ON CAPITAL EMPLOYED
Capital expenditure & FCCB Issue
Capital Expenditure
673
1029
1474
1779
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2003-04 2004-05 2005-06 2006-07
Rs. in M
illion
(32.26)
73.92
(11.28)
7.39
77.81
2007-2008
(Apr-Sep’07)
81.98
136.17
(34.24)
14.78
155.63
2006-2007
(Apr-
Mar’07)
56.046.32
Exchange
Loss/(Gain)
298.9688.87 Total Finance Cost
(77.97)(32.45)Interest Income
33.2511.08 Issue Expenditure
343.68110.24
Premium on
Redemption
Total
(July’05- Mar’07)
2005-2006
( July 05-
March 06)
Rs. In MillionExpenditure Charged to Profit & Loss Account
Euro 1.50 millionsLess : converted into shares
126.77% of Issue
price
Redemption price , if not converted/redeemed
earlier then, on 16th July 2010
NilCoupon Rate
Rs. 74.30 Per Share
Conversion price @ 150% ofshare price at the
time of issue of FCCB
Rs. 48.80 Per ShareFCCB Outstanding
Euro 50.30 MillionFCCB Issue in July 2005
Dividend Payout
Dividend Payout Ratio 40%
177
132
308
412
268
42%
32%
29%
32%
46%
36%
43%
37%
36%
27%
0
50
100
150
200
250
300
350
400
450
2002-03 2003-04 2004-05 2005-06 2006-07
Dividend (Rs. in M
illions)
10%
15%
20%
25%
30%
35%
40%
45%
50%
Dividend to PAT (%)
Dividend Amount
Dividend to PAT(Standalone)
Dividend to PAT(Consolidated)
� Bonus Issue in 1997-98: One share
against Two shares held
� Bonus Issue in 2000-01 : One share
against Two shares held
� Bonus Issue in 2004-05 : One share
against Two shares held
� Bonus Issue in 2007-08 : One share
against Two shares held
Bonus Issues
Return to Shareholders
Growth Drivers
� Increasing Content per Car with increasing
complexity in vehicles
� Growth of customers resulting in increased
volumes
� Developing new products and setting up new
Joint Ventures
� Move to new markets and new segments
� More acquisitions giving access to a new
customer base
� Starting supplies from all the group companies to
newly acquired customers
Expanding through Acquisitions & Overseas Ventures
MSSL Ireland Pvt. Ltd. and MSSL Mideast (FZE)
Established MSSL Ireland Pvt. Ltd., 1st
Overseas wiring harness design centre and customer support centre through acquisition of Wexford Electronix which was in receivership. Relocated the manufacturing operations to MSSL Mideast Sharjah in a record time of 70 days.
Mothersonsumi Reiner GmbH
Acquired machining business of Reiner Prazision GmbH in Germany. gave the Group entry to Automotive Tier – I suppliers.
G&S Kunststofftechnik GmbH
Acquisition of G&S business added capabilities in Plastic injection molding including 2K molding. Gave an entry into Tier-I manufacturers and enabled setting-up a window for customer support and logistics
MSSL (GB) Ltd.
This acquisition of business of ASL Systems was a step in consolidating position of wiring harness business in niche markets.
FP Formagrau s.r.o.
Acquisition of FP Formagrau s.r.o. provided a low cost manufacturing base in Europe and added capabilities in Injection molding of plastics.
Motherson Elastomers
Pty. Ltd.
Acquired Empire Rubber, Australia which is engaged in rubber mixing and manufacture of rubber extruded components on going concern basis.
� Acquire the businesses and assets in distress with customer contracts mainly in the European market
� Improve and stabilize the business and the relationship with the customers with improved quality, delivery and engineering support
� Offer ease of doing business to the customers by dealing with the same face at the same time and at the same location
� Extend the relationship by introducing other products from our range to the same customers
Joint Venture Specialist
� Specialise in being a manufacturing
company
� Bring new technologies for customers
� Acquire tested technologies from
collaborators
� Amalgamation of technologies to
provide single window solutions to
customers
� Collaborate with follow-me sources of
global OEMs
� Develop long term relationships
� Extend relationship to new business
areas
Existing Partners
1Korea
1Italy
1USA
24Total
2Australia
8Germany
11Japan
(Sumi Motherson Group)
Growing with many successful alliances, oldest being over 20
years
Group Companies supporting Growth
Sumi Motherson Innovative
Engineering Ltd.
Sumitomo Wiring Systems, Ltd.
Centre Tooling Mould Makers Pty Ltd. CTM India Ltd.
Samvardhana Motherson Finance Ltd. & Associates
Anest Iwata Motherson Ltd.
Mothersonsumi INfotech & Designs Ltd.
59%
49%
41%
51%
73.2%26.8%
15.4%
25%
10.3%
Motherson Sumi Systems Ltd.
Anest IwataCorporation
Public & Others
Webasto Motherson Sunroofs Ltd.
49%51%Webasto Ag
ABC Designs Pty Ltd. 100%49.3%
Miyazu MothersonEngg. Design Ltd.
34%
51%
Miyazu Seisakusho Co.
Sojitz Corporation 15%
Motoman Motherson Robotics Ltd.
34%
51%Yaskawa Electric
Corp
AES (India) Engineering Ltd.
26% 74% AES Global Pte. Ltd.
Sojitz Corporation 15%
Spheros Motherson Thermal System Ltd.
49%Spheros GmbH 51%
Fritzmeier Motherson Cabin Engineering Ltd.
50%F Holding GmbH (Fritzmeier) 50%
Nachi Fujikoshi Corp.
Anest Iwata
Matsui Manufacturing Co. Ltd.
Nachi Motherson Tool Technology Ltd.
Anest Iwata Motherson Coating Equipment Ltd.
Matsui Technologies India Ltd.
74%
49%
50%
26%
51%
50%
Sumitomo Electric Hardmetal Corp.
Motherson Techno Tools Ltd.
25% 75%
Timetooth Technology LLC
Motherson Timetooth Technology Ltd..
51%49%
Zanotti S.p.AMotherson Zanotti
Refrigeration System Ltd.
50%50%
Nissin Electric Co., Ltd. 49%51%Nissin Advanced
Coating Indo Co. Ltd.
Safe Harbor
Certain expectations and projections regarding future performance of company referred to in this presentation may be “forward-looking” statements within the meaning of applicable securities laws and regulations. These are statements which the management believes are true at the time of their preparation based on available data and information and are subject to certain future events and uncertainties, which would cause actual results to differ materially from those anticipated in these forward-looking statements. Factors influencing forward looking statements include the operating environment and foreign currency exchange fluctuations.
Thank You …
A Relationship Built on Trust