Amtek Group Investor Presentation October 2011
Celebrating our 25th Anniversary ………
Important Notice
Forward Looking Statements
This presentation contains statements that contain “forward looking statements” including, but without
limitation, statements relating to the implementation of strategic initiatives, and other statements relating to
Amtek Group’s (i.e. Amtek Group represents Amtek Auto, Amtek India & Ahmednagar Forgings and their
subsidiaries) future business developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning the
development of our business, a number of risks, uncertainties and other unknown factors could cause actual
developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory
trends, movements in currency exchange and interest rates, competitive pressures, technological
developments, changes in the financial conditions of third parties dealing with us, legislative developments,
and other key factors that could affect our business and financial performance.
Amtek Group undertakes no obligation to publicly revise any forward looking statements to reflect future /
likely events or circumstances.
2
Agenda
1. Investment Highlights 4
2. Group Overview 6
3. Auto Segment 12
4. Non Auto Segment 18
5. Group Strategy 22
6. Financial Overview 25
7. Corporate Governance 26
8. Key Takeaways 27
3
Amtek Group represents Amtek Auto, Amtek India and Ahmednagar Forgings and their subsidiaries
Group Market Cap3:
~ US$1 billion
Segments:
Auto and Non Auto
Incorporated in 1987
Group Sales1:
Over US$1.3 billion
Annual Capacity1:
Tonnage2: 645,000 MT
Machining: 92 mn units
Joint Ventures &
Technology Partners
World Class Global
Manufacturing Base
No Customer
Contributes Over
16% of Group Sales
Investment Highlights
One of the Largest Integrated Component Manufacturers in India with a Strong Global Presence
4
Notes:
1. FY 2011
2. Iron & Aluminium Casting, Forging
3. September 30, 2011
Investment Highlights
Leading Market Position
• Indian Engineering company with operations across Forging, Iron & Aluminium Casting, Machining & Sub-Assemblies
• Leader across multiple product categories
• Management team with extensive experience
• Non-auto segment growth is a strategic priority
Best-in-Class Operations
• World class integrated facilities globally
• In-house design and product development
• Low cost base relative to global peers
• Joint ventures with leading global firms
• Six Sigma and Lean Technologies
Premier Global Customer Base
• Diversified Auto / Non- Auto end markets
• No client accounts for over 16% of group sales
• Top five group clients Ford, Honda Group, JCB, Maruti Group and Tata JLR
Strong Financial Performance
• Track record of double digit topline growth
• Financial strength to pursue growth strategy
• Improved operational efficiencies and enhanced capacity utilizations across all product lines
• Robust performance in Auto and Non-Auto segment
Well positioned for medium term domestic and global growth in the Auto and Non-Auto segments
5 Note:
1. Customers arranged in alphabetical order
Enertec Systems Ltd
Autech Corporation
Group Overview
Amtek Group
FY20111 Sales: $1.3 billion
Auto Segment
Sales Contribution: 78%
Non-Auto Segment
Sales Contribution: 22%
En
d M
ark
ets
Passenger cars
2/3 wheelers
Light commercial vehicles
Heavy commercial vehicles
Off-highway segment:
Construction & Earth
moving equipment
Pa
rtn
ers
hip
s
Railway wagons
Locomotive components Specialty vehicles
Aerospace components
Magna Powertrain Aizen Corporation
Neumayer Tekfor Ateliers de Siccardi
Sumitomo Metal
Industries Teksid
American Railcar
Industries
Joint Venture Technology Joint Venture Technology
Notes:
1. Represents unaudited financials. This includes other income
2. Blue text represents upcoming segments
Tractors
6
Asia Europe FY2011*
Group Sales by Location
Automotive Machining (28)
Forging (6) Iron Casting (2) Aluminum Casting (2)
Joint Ventures (3)
Sites Locations Units**
World Head Office 1
Corporate Offices 2
Manufacturing
Facilities
43
Distribution Centre 3
Notes:
* Unaudited financials
** As of June 30, 2011
Group Overview
Integrated Facilities Delivering Platform for Growth
India
UK
Germany
7
Transportation (2)
87%
13%
Domestic Overseas
29%16%
4%
51%
Forging
Iron Casting
Aluminium Casting
Machining/Sub-Assemblies
25% 15%
7%
53%
Forging
Iron Casting
Aluminium Casting
Machining/Sub-Assemblies
45%
14%
16%25%
Passenger Cars
2/3 Wheelers
LCV/HCV
Non Auto
52%
12%
14%22%
Passenger Cars
2/3 Wheelers
LCV/HCV
Non Auto
FY2011 Global Sales by Segment Group FY2011 Global Sales by Division
FY2011 India Sales by Segment Group FY2011 India Sales by Division
Group Overview
Strength Across Multiple Industry Segments
Notes:
1 LCV stands for light commercial vehicles and HCV stands for heavy commercial vehicles
2 Above numbers are unaudited financials
3 Non-Auto includes Railway wagons, Locomotive components, Tractors, Construction & Earth moving equipment
8
Notes:
• ARI: American Railcar Industries
• MPT: Magna Powertrain
Ownership stake is 100% unless otherwise mentioned; Subsidiaries are
those where the Parent hold more than 50% stake
As of Aug 30, 2011
Promoters
Amtek Auto Limited
Amtek
Transportation
Systems Ltd.
Amtek Tekfor
Automotive
Ltd.
MPT Amtek
Automotive
(India) Ltd.
Amtek India Ltd.
Amtek Ring Gears
Ltd.
Amtek
Crankshaft
(India) Ltd.
Amtek Defense
Technologies
Ltd.
SMI Amtek
Crankshaft
Pvt Ltd.
Amertec Systems
Pvt. Ltd.
74%
54.96% 50%
50%
50%
Zelter GMBH
Kings Automotive
Systems Ltd.
Amtek Aluminium
Casting (UK) Ltd. 96.60%
Ahmednagar
Forgings Ltd.
61.64%
Domestic (India) Joint Ventures (India) Overseas
• Tekfor: Neumayer Tekfor
• SMI: Sumitomo Metal Industries
Group Overview
Organization Structure
Amtek ARI
Railcar
Industries Ltd.
50%
9
37.44%
(Pre-Buyback)
39.93%
(Post-Buyback)
AMTEK AUTO LIMITED TOP INSTITUTIONAL INVESTORS
As of Aug 30, 2011
Broadpeak
Shareholding Pattern
Group Overview
10
37.44%
35.70%
8.40%
18.46%
Promoters FIIs
Domestic Institutions Others
2/3 Wheelers Passenger Cars
Light
Commercial
Vehicles
Heavy
Commercial
Vehicles Others Tractors
Auto Sector Customers Non-Auto Customers
Railways Others
Diesel
Locomotive
Works
GE
Transportation
Diesel Loco
Modernisation
Works
Top 5 Customers
Top Customers
No Customer Contributes More than 16% of Sales
Group Overview
Notes:
1. Above customers are as of FY2011
2. Customers arranged in alphabetical order
11
Auto Segment
Auto Segment
ALUMINIUM CASTING
In house engineering expertise
Advanced casting processes and machining techniques
Operating Structure: By Process
FORGING
Include presses, hammers, upsetters & ring rollers
Precision hot forging, tooling design and manufacturing
Camshaft Connecting Rod Crankshaft
Front Axle Beams Bridge Fork Bottom
IRON CASTING
Include HWS and GFD lines
Capability to cast large complex components
Clutch Case Intake Manifold Sump
Cover Transmission Case
Cylinder Head
Axle Housing Front Axle Support
Turbo Charger Cylinder Block
MACHINING & SUB-ASSEMBLIES
Complex, state-of- the-art machining facilities
Units with sub-assemblies capabilities
Flywheel
Connecting Rod Crankshaft
Ladder Frame
Turbo Charger
13
HIGHLY ENGINEERED COMPLEX PRODUCTS
Ring Gear
Connecting
Rod
Camshaft
Cylinder
Block
Intake
Manifold
Clutch
Case
Turbo Charger
Crankshaft
Sumps
Transmission
Forks
Wheel Hub
Steering
Knuckles
Flywheel
Ladder
Frame
Auto Segment
Value Added Product Profile: Passenger Cars
14
Notes: Above models are for representation only and may not be accurate. Products shown above are a subset of our components range
Auto Segment
Value Added Product Profile
3 Wheelers
2 Wheelers
Heavy Commercial Vehicles
Light Commercial Vehicles
Crankshaft
Connecting Rod
Bridge Fork Bottom
Front Axle Support
Flywheels
Crankshaft
Connecting Rod
Flywheels
Crankshaft
Connecting Rod
15
Cylinder Blocks
Ring Gear
Notes: Above models are for representation only and may not be accurate. Products shown above are a subset of our components range
Cylinder Blocks
Joint Venture Partner Inception Partner Location Ownership* Component
Notes:
* Shareholding is for Amtek and Joint Venture partner respectively
** Sales for FY2010
Technology Partner
Ateliers de Siccardi
Aizen Corporation
US$740 million global auto component manufacturer
Market leader in Connecting Rod Fracture Split
technology
US$24 billion** global auto component manufacturer
World market leader in Flex Plate assembly
US$17 billion** company
Utilise Sumitomo’s superior technological strength in
manufacturing Crankshaft Forging
Technical collaboration for manufacture of machined Crankshaft
Technical collaboration for Connecting Rod assemblies
Technical collaboration for manufacturing Engine Block
Germany
Canada
Japan
France
Italy
50% : 50%
50% : 50%
50% : 50%
Japan
Aizen Corporation Japan Technical collaboration for building Special Purpose Machines
Teksid
Sumitomo Metal Industries
Neumayer Tekfor
Magna Powertrain 2006
2005
2010
2010
2010
1999
2007
Auto Segment
Partnerships with Global Firms to Provide World Class Products
16
9.0
8.5 8.9 11.1 14.2
15.8
17.7 19.8 22.1
0.0
5.0
10.0
15.0
20.0
25.0
FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Notes:
1. Source: SIAM, ACMA
2. FY represents fiscal year ending 31st March
Auto Segment
Domestic Automotive Market Trend
17
Indian Passenger Car Production (mn units) Indian Commercial Vehicles Production (mn units)
Indian 2/3 Wheeler Production (mn units) Auto Component Export ($ bn)
0.5 0.5
0.4 0
.6 0.8 0
.9 1.0 1
.2
1.4
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
2.7 3
.5 3.8
3.8 5
.0 5.9 6
.9 8.0
9.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
1.5 1.8
1.7 2
.2 2.8 3
.2 3.8 4
.4 5.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY07 FY08 FY09 FY10 FY11 FY12E FY13E FY14E FY15E
Non-Auto Segment
Non-Auto Segment
Value Added Product Profile
Tractor Components Earth Moving & Construction Equipment Components
Connecting Rod
Cylinder Head
Crankshaft Cylinder Head Crankshaft
19 Notes: Above models are for representation only and may not be accurate. Products shown above are a subset of our components range
FlyWheel Front Axle Support FlyWheel
Locomotive Components
Broad range of components for Indian and US market
Provides backward integration for Railway Wagon segment
Specialty Vehicles
Technical collaboration with Autech Corporation
Manufacturing of Specialty Vehicle (like ambulances, fire
tenders and waste management vehicles)
Steel Cap Piston Anchor Shackle Support
Connecting Rod Intermediate Crab EMD
Value Added Product Profile
Non-Auto Segment
Railway Wagons
• Joint Venture with American Railcar Industries
• First prototype is in advanced stage of completion
20 Notes: Above models are for representation only and may not be accurate. Products shown above are a subset of our components range
15,000
10,000
21,000
21,000
2012-13
2011-12
Government's Vision Amtek's Estimates
Indian Railway’s Vision 2020 Tractor Production
Construction Equipment Production
Projected Demand of Wagons
Non-Auto Segment
Source: ACMA, SIAM and Indian Railway – Vision 2020, Ministry of Urban Development
21
4047
5463
74
86
100
0
30
60
90
120
FY09 FY10 FY11 FY12E FY13E FY14E FY15E
000
' u
nit
s
420
548598
653713
778710
0
200
400
600
800
1000
FY09 FY10 FY11 FY12E FY13E FY14E FY15E
000' u
nit
s
82%
18%
Auto
Non Auto
78%
22%
Auto
Non Auto
72%
28%
Auto
Non Auto
FY2010 FY2014
FY 2011:
Current Position
FY 2014:
Vision
Forging
Iron Casting
Aluminum
Casting
Developed
Products
Machining and
Sub-Assemblies
Assembly and
Focused
Products
Passenger
Vehicles
2 / 3 Wheelers
Light & Heavy
Commercial
Vehicles
Specialty Vehicles
& Aerospace
Components
Tractors,
Construction &
Earth Moving
Equipment
Railway Wagons
and Locomotive
Components
Group Strategy
Future Value Creation Strategy
FY 2010:
Earlier Position
22
Segments Processes Segments
Domestic50-55%
Joint Venture
1-4%
Exports7-11%
Overseas7-11%
Leverage core strengths in Forging, Iron &
Aluminium Casting, Machining and Sub-Assemblies
Enhance customer base
Continue to focus on Indian domestic growth story
Limited capex going forward and focus on cash
generation
Improved operational efficiencies, ROCE and EPS
Continued focus on Debt reduction
Go to Market Strategy
Further technology improvements via Joint Ventures
Improve utilization across all operations in Forging,
Iron & Aluminium Casting, Machining and Sub-
Assemblies
Quality improvement programs at all sites like Six
sigma & Business excellence programs
Domestic & Overseas units continue to win new
businesses
Capture growing export demand for components
Focus on improving operational productivity across
its facilities globally
Strategic Plan Established
Group Strategy: Auto
Operational Strategy
23
Net Sales Contribution by Segment
82% 78% 72%
0%
20%
40%
60%
80%
100%
120%
FY2010 FY2011 FY2014
Auto Non Auto
Defense Components
1-2%
Rail Components
1-2%
Aerospace Components
1-2%
Specialty Vehicles
2-5%
Railway Wagons
3-7% Off-Highway 5-10%
Tractors10-15%
Non Auto to grow from 18% to 28% within the cycle:
Rail Wagon through joint venture partner to offer high capacity new designs
Focus on manufacturing of high precision engine components for diesel locomotives.
Capitalize on Indian off-highway segment and agricultural tractors segment growth
Leveraging existing auto components expertise and technical tie-ups in other segments
Group Strategy: Non-Auto
Go to Market Strategy
Strategic Plan Established
24
Net Sales Contribution by Segment
Note:
1.Off highway includes Construction & Earth moving equipment
18% 22% 28%
0%
20%
40%
60%
80%
100%
120%
FY2010 FY2011 FY2014
Auto Non Auto
(US$ million) FY2008 FY2009 FY2010 FY20113
Sales and Other Income $1,299 $928 $1,028 $1,340
Growth % 28.3% (28.5)% 10.7% 30.4%
EBITDA $321 $195 $260 $345
Growth% 41.1% (39.1)% 33.4% 32.4%
Margin % 24.7% 21.0% 25.3% 25.7%
Interest $32 $43 $59 $79
Depreciation $58 $75 $88 $98
Profit After Tax $178 $54 $78 $128
Margin % 13.7% 5.8% 7.6% 9.5%
Financial Overview: Amtek Group
Notes:
1. Fiscal year is June ending
2. Exchange rate US$ 1 = Rs. 46
3. FY2011 figures are unaudited
4. Amtek Auto Consolidated doesn’t consolidate Amtek India
25
FCCB Schedule (in $)
Share Capital
Amtek Auto Consolidated
Issue Size Current Outstanding(2) Maturity Date Conversion price
$165.00 mn $ 6.87 mn July 2014 INR 148.40
June 30, 2011 Mar 31, 2011 Fully Diluted
Shares Outstanding (mn) 233.1 216.3 235.2
Share Capital ($ mn) 10.1 9.7 10.2
Corporate Governance
Amtek Group
Internal and
Statutory Auditor
Investor
Communication
Joint Venture
Auditor
Consolidation of
Amtek India
Disclosure &
Transparency
Research Coverage
Board of Directors Legal & Regulatory
Compliance
Appointed reputed auditor
Amtek Auto successfully completed
tender offer for Amtek India. Now
holds a 61.64% stake.
Government, Financial
Institutions, Bankers and
other Stakeholders
In discussion Completed
In discussion
Enhancing dialogue with
the equity markets and
brokerage houses
Currently covered by 4
domestic and 2
international brokers
26
Key Takeaways
One of India’s largest integrated
engineering and auto component
manufacturers
Focus on cash generation
and debt reduction plan in
place
Limited capex going
forward
27
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