INVESTOR PRESENTATION - :: Welcome to AMTEK ::€¦ · · 2017-05-29INVESTOR PRESENTATION...

Strictly Confidential

INVESTOR PRESENTATION

September 2015


Overview

Founded 1985

BusinessIntegrated auto and non-auto component manufacturer with operations across

forging, iron casting, aluminium casting, machining and sub-assemblies

SegmentsAuto: Passenger cars, 2/3 wheelers, Light and Heavy Commercial Vehicles

Non-Auto: Construction, Oil & Gas, Railways, Earth Moving and Agricultural

Manufacturing FacilitiesFacilities spread across India, Japan, Thailand, Germany, Hungary, Italy, Romania,

UK, Brazil, Mexico and US

Key CustomersBMW, BorgWarner, Caterpillar, CNH America, Cummins, Fiat, Ford, GM, Halliburton,

Hero, Honda, JCB, Maruti Suzuki, Tata JLR, Timken and Volkswagen

Amtek Auto Consolidated Revenues Rs 152,135m (US$ 2,314m) – FY2015 (Fiscal year ended Sep 30, 2015)

Amtek Auto Consolidated EBITDA(a) Rs. 24,090m (US$ 366m) with margins of 15.8% – FY2015 (Fiscal year ended Sep

30, 2015)

Note:

INR/USD exchange rate of 65.74 as of Sep 30, 2015 sourced from www.rbi.org

(a) EBITDA is calculated as Profit before Tax and exceptional items + Depreciation and Amortization + Finance costs

2


DIIs7.25%

Others38.19%

FIIs0.40%

Promoter 54.16%

Others8.78%

FIIs19.49%

Promoter71.73%

DIIs2.13%

Others24.71%

FIIs20.88%

Promoter52.28%

42.1%

Note: Shareholding break-up as of 30 Sep 2015

Amtek Auto also directly holds 10% stake in AWTL Technologies Pte Ltd

‘Amtek Riken Casting Pvt Ltd‘ is 50:50 joint venture between Amtek India Ltd. and Riken Corporation

FIIs stands for Foreign Institutional Investors; DIIs stands for Domestic Institutional Investors

Amtek Precision

Engineering Pte. Ltd.

Singapore (Scholz)

Amtek Integrated Solutions

Pte. Ltd. Singapore

(Techno Metal Amtek

Japan Investment)

Simplified Organization Structure

3

Amtek Auto Limited

Castex Technologies Metalyst ForgingsJMT Auto

ListedUnlisted

Foreign Entity

Amtek Auto Limited

Promoters

49.99%

Alliance Hydro Power Ltd

JMT Auto Ltd66.8%

Subsidiary Companies

Castex Technologies Ltd

MPT Amtek

SMI Amtek

Metalyst Forgings Ltd

36.0%

49.3%

50.0%

50.0%

Joint Ventures and Associates

Amtek Transportation

Systems

70.0%

100.0%

Amtek Global

Technologies Pte.

Ltd., Singapore

78.5% 21.5%

Amtek Kuepper

GmbH

16.3%

100.0%

100.0%

99.9%

0.1%

Joint Venture

ARGL Ltd

ACIL Ltd44.0%

Amtek Machining

Systems Pte Ltd

(REGE)

100.0%

DIIs7.76%

Others29.08%

FIIs13.17%

Promoter49.99%


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4

Note:

Total Revenue includes Net Sales and Other Income

FY11, FY12, FY14 and FY15 represent 12 months period ended June 30, 2011, June 30, 2012, Sep 30, 2014 and Sep 30, 2015 respectively; FY13 represents 15 months period ended Sep 30, 2013

FY14 Proforma Kuepper Annualized includes annualized 6 months financials for Kuepper

*FY15 Proforma represents twelve month FY15 revenues excluding Castex Technologies and Metalyst Forgings and adjusted for new acquisitions (Scholz, Asahi Tec and REGE)

For FY15 Proforma, INR/USD exchange rate of 65.74 as of Sep 30, 2015 sourced from www.rbi.org

FY15 geographical revenue breakdown based on management summation of revenues by manufacturing site locations

Kuepper Annualized

Revenue Transformation

*

$ 851mRs. 51,119m

$ 1,268m Rs. 76,222m

$ 1,759m Rs. 105,726m

$ 2,549m Rs. 157,067m

$ 2,653m Rs. 163,431m

$ 2,343m Rs. 154,036m

FY11 FY12 FY13(15 months)

FY14 FY14 Proforma FY15 Proforma

India46.3%

Germany28.0%

Italy8.4%

UK5.8%

Hungary0.6% Brazil

2.7%

US3.1% Mexico

0.4%Japan4.0%

Thailand0.7%87.0% 86.8%

76.3%62.5%

46.3%

13.0% 13.2%20.5%

31.1%

42.8%

3.2% 6.4%6.2%4.7%


FY14 FY15

India Europe Americas Asia (EX-India)


Geographic Presence

5

Forging

Iron Casting

Aluminium Casting

Machining and Sub-Assemblies

Joint Ventures

International Corporate Office

Sales Office

India Europe Asia ex. India Total

Global Head Office 1 1

International Corporate Offices 1 1 2

Sales Office 1 1

US

Mexico

UK

Brazil

Germany

Italy

Hungary

Singapore

Japan

IndiaThailand

Romania


Amtek Group - Business Overview

6

Connecting Rod Camshaft Wheel Hub

Cylinder Head Cylinder Block Turbo charger Front Axle

Support

Intake Manifold Clutch Case Cover Transmission

Case

Tank Car

Super Finish Shaft

Steel Cap

Piston

Crankcase

Gear Flywheel Crankshaft

Intermediate Crab

FAB Assembly

Railway Wagons,

Locomotive Engine

Components

Engineering, Industrial,

Oil & Gas

Tractors,

Construction and

Earth Moving Equipment

Light and Heavy

Commercial Vehicles

2/3 Wheelers

Passenger Vehicles

Iron Casting

Forging

Aluminium

Casting

Machining and

Sub-Assemblies

Non Auto

No

n A

uto

Au

to

High value added, performance and safety critical components; High barriers to entry


Customers

7

Auto Sector Non - Auto Sector

2/3 Wheelers Passenger Cars

Light Commercial

Vehicle

Heavy Commercial

Vehicle Others Tractors Railways Others

Note: In alphabetical order


Strategic Transformation Through a Series of Acquisitions

8

Key Metrics FY12 FY14 FY15

Revenues US$ 1,268m US$ 2,549mUS$ 2,343m*

(Proforma)

International Contribution 13.0% 37.5% 72.7%**

Countries Added –Italy, Brazil, Hungary, US,

MexicoJapan, Romania, Thailand

Head/International Offices New DelhiNew Delhi, Frankfurt and

Singapore

New Delhi, Frankfurt and

Singapore

Sales Offices – Japan Japan

Transformed into a global company for Forging, Casting, Machining & Sub-assemblies

Note:

FY12 is 12 months period ended June 30, 2012; FY14 represents year ended September 30, 2014

*FY15 Proforma represents twelve month FY15 revenues excluding Castex Technologies and Metalyst Forgings and adjusted for new acquisitions (Scholz, Asahi Tec and REGE)

** Indicates proforma contribution after excluding Castex Technologies and Metalyst Forgings and adjusting for new acquisitions (Scholz, Asahi Tec and REGE)

For FY15, INR/USD exchange rate of 65.74 as of Sep 30, 2015 sourced from www.rbi.org


Strategy

9

Complete the integration of

Scholz & Asahi into the

Amtek Group

Focus on deleverage the

balance sheet

Continue to grow the

topline

Target to be one of the top

automotive component

companies by revenue

To drive operational

excellence through Lean

Six-Sigma processes

across all countries under

the ‘Amtek Operating

System’

Key return ratios to be

enhanced significantly


Industry Overview

10

CY2015 Global Passenger Car Sales Growth Forecast

FY2016 Indian Automotive Production Growth Forecast

Source: India Ratings & Research Jan 2015, Scotiabank Global Auto Report Feb 2015, IHS Automotive, Studio Promotor (Italian automotive research group)

4.0%5.5%

3.5%

15.0%

1.5%

6.5%

22.0%

Passenger Cars Utility Vehicles Passenger Vehicles M&HCVs LCV Commercial Vehicles 2 Wheelers

4.6%5.5%

1.7%

4.2%9-11% 3.5% 3.4%

4.8%

6.5%

1.2%

(1.4)%

Germany Italy UK WesternEurope

UnitedStates

Mexico NorthAmerica

India Asia Brazil SouthAmerica

Notes: FY2016 represents Year ending March 2016; CY2015 represents Year ending December 2015

M&HCV = Medium and heavy commercial vehicles; LCV = Light commercial vehicles

For United States, Mexico and North America, estimate includes Light Trucks

3.7%


44,472 66,312

80,687 98,025 98,025

70,180

6,647

9,910

25,039

59,042 65,406

81,955


FY14 FY14 Proforma FY15

India International

Financial Metrics: Amtek Auto

11

Revenue and Growth

US$ 851m

Rs 51,119m

US$ 1,268m

Rs 76,222m

US$ 1,759m

Rs 105,726m

US$ 2,549m

Rs 157,067m

Note:

Total Revenue includes Net Sales and Other Income




US$ 2,653m

Rs 163,431m

Kuepper Annualized

US$ 2,314m

Rs 152,135m

http://www.rbi.org/


12,378

19,25123,709

28,509 28,509

17,416

676

1,050

1,130

6,014 6,784

6,673

25.5%

26.6%

23.5%

22.0%21.6%

15.8%


FY14 FY14 Proforma FY2015

India International Margin


12

EBITDA(a) and Margins

Note:

EBITDA includes Other Income

(a) EBITDA is calculated as Profit before Tax and exceptional items + Depreciation and Amortization + Finance costs




US$ 217m

Rs 13,054m

US$ 338m

Rs 20,301m

US$ 413m

Rs 24,839m

US$ 560m

Rs 34,523m

US$ 573m

Rs 35,293m

Kuepper Annualized

US$ 366m

Rs 24,090m



13

Balance Sheet

Note:

For FY15, INR/USD exchange rate of 65.74 as of Sept. 30, 2015 sourced from www.rbi.orgFY14 and FY15 represent 12 months period ended Sep 30, 2014 and Sep 30, 2015 respectively

(a) Net Debt is calculated as Total Debt (Long Term Borrowings+ Short Term Borrowings + Current maturity of Long Term Debt due)-Current Investments-Cash and Equivalents

(b) EBITDA is calculated as Profit before Tax and exceptional items + Depreciation and Amortization + Finance Costs, FY2014 Proforma represents annualized 6 months financials for Kuepper

(c) Pre-Tax ROCE is calculated as EBIT / (Total Debt + Shareholder’s Funds); EBIT is defined as Revenue-Cost of material - Changes in inventories/WIP and stock-in-trade - Employee Benefit Expense - D&A - Other expenses

(d) ROE is calculated as Profit after Tax and Minority Interests / Shareholder’s Funds

(e) Includes current payments due of Finance Lease Obligations

FY14 FY15

(Rs. m) (US$ m) (Rs. m) (US$ m)

Long Term Borrowings 114,809 1,863 94,190 1,433

Short Term Borrowings 36,883 599 27,448 418

Current maturity of Long Term Borrowings(e) 24,917 404 24,082 366

Total Debt 176,609 2,866 145,720 2,217

Cash & Cash Equivalents (Incl Current

Investments)(11,534) (187) (6,000) (97)

Net Debt(a) 165,075 2,679 139,721 2,267

Shareholder’s Funds (including Minority

Interest)90,329 1,466 66,044 1,005

Net Debt(a)/Equity 1.83x 1.83x 2.1x 2.1x

Net Debt/EBITDA(b) 4.8x 4.8x 5.8x 5.8x


Disclaimer

14

By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations:

The information in this presentation has been prepared for use in presentations about Amtek Auto Limited, its subsidiaries, joint ventures and associates, as the context

may so require (“Amtek”) and does not constitute a recommendation regarding the securities of Amtek. This presentation is confidential and must not be taken away,

copied, reproduced, distributed or passed (in whole or in part), directly or indirectly, to any other person (whether within or outside your organisation or firm), or published

in whole or in part, for any purpose, at any time without prior consent from Amtek. This presentation is only being made available to parties who hereby agree to treat it as

confidential and not to disclose any information contained herein. By attending the meeting where this presentation is made, or by reading the presentation slides, you

agree to be bound by the following limitations and represent that you are a person who is permitted under applicable law and regulations to receive information contained

in this presentation.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the

information, or opinions contained herein. Such information and opinions are in all events not current after the date of this presentation. Neither Amtek nor any of its

affiliates, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this

presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to updating, completion, revision,

verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect

on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither Amtek nor its affiliates,

advisors or representatives are under an obligation to update, revise or affirm.

The information communicated in this presentation contains certain statements that reflect Amtek’s beliefs, plans and expectations about the future and are or may be

forward looking. These statements typically contain words such as “will”, “expects”, “plans” and “anticipates” and words of similar import. These forward-looking statements

are based on management’s current expectations or beliefs as well as a number of assumptions about Amtek’s operations and beyond Amtek’s control which are

expressed in good faith and in their opinion reasonable, and by their nature forward looking statements involve risk and uncertainty because they relate to events and

depend on circumstances that will occur in the future. Any investment in securities issued by Amtek will also involve certain risks. There may be additional material risks

that are currently not considered to be material or of which Amtek and its advisors or representatives are unaware. Against the background of these uncertainties, readers

should not rely on these forward-looking statements. Amtek assumes no responsibility to update forward-looking statements or to adapt them to future events or

developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person and

may be altered, modified or otherwise changed in any manner, without obligation to notify any person of such change or changes.

This presentation and the information contained herein does not constitute or form part of any offer or advertisement, for sale or subscription of or solicitation or invitation

of any offer to buy or subscribe for any securities of Amtek. This presentation and the information contained herein is being furnished to you solely for your information and

may not be reproduced or redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may

be, directly or indirectly, taken or transmitted into or distributed in the U.S., Canada, Australia, Japan or any other jurisdiction which prohibits the same except in

compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. No

money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. This presentation is not intended to be a prospectus (as

defined under the Companies Act, 2013, to the extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and

Disclosure Requirements) Regulations, 2009 as amended.

By reviewing this presentation, you are deemed to have represented and agreed that you and any customers you represent are either (a) qualified institutional buyers

(within the meaning of Regulation 144A under the Securities Act), or (b) not a U.S. person and are outside of the United States and not acting for the account or benefit of

a U.S. person (as defined in Regulation S under the Securities Act).


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INVESTOR PRESENTATION - :: Welcome to AMTEK ::€¦ · · 2017-05-29INVESTOR PRESENTATION...

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