Strictly Confidential
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
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Strictly Confidential
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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Reve
nu
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ren
ds
R
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n
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%
FY11 FY12 FY13(15 months)
FY14 FY15
India Europe Americas Asia (EX-India)
Strictly Confidential
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
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Amtek Group - Business Overview
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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
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Customers
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Auto Sector Non - Auto Sector
2/3 Wheelers Passenger Cars
Light Commercial
Vehicle
Heavy Commercial
Vehicle Others Tractors Railways Others
Note: In alphabetical order
Strictly Confidential
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
Strictly Confidential
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
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Industry Overview
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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%
Strictly Confidential
44,472 66,312
80,687 98,025 98,025
70,180
6,647
9,910
25,039
59,042 65,406
81,955
FY11 FY12 FY13(15 months)
FY14 FY14 Proforma FY15
India International
Financial Metrics: Amtek Auto
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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
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
For FY15, INR/USD exchange rate of 65.74 as of Sep 30, 2015 sourced from www.rbi.org
US$ 2,653m
Rs 163,431m
Kuepper Annualized
US$ 2,314m
Rs 152,135m
Strictly Confidential
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%
FY11 FY12 FY13(15 months)
FY14 FY14 Proforma FY2015
India International Margin
Financial Metrics: Amtek Auto
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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
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
For FY15, INR/USD exchange rate of 65.74 as of Sep 30, 2015 sourced from www.rbi.org
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
Strictly Confidential
Financial Metrics: Amtek Auto
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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
Strictly Confidential
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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