Wiring Harness Division Investor Meet 2020 The Division’s Operations Today
26% of Group revenue
81K+ employees
77 Facilities
JV Partners JV Partners • Sumitomo Wiring Systems, Japan • Jiangsu Huakai Wire HarnessCo. Ltd., China • Kyungshin Industrial Corporation, South Korea • Hefei Jianghuai Automobile Co. Ltd., China • Hubei Zhengao Auto Accessories Group Co. Ltd., China
2 Experienced Leadership
Pankaj Mital
G.N. Gauba Rakesh Satwah Duncan Reid Frank Sovis Jani Kiljala André Gerstner Jyrki Keronen Sanjeev Bhatia
CFO KIML MWSI- North America PKC - North America PKC - EUSA PKC - Rolling Stock PKC - APAC Wire Group Apex Team
Matti Yli-Olli Younes Saadi Vesa Vähämöttönen Deepak Tyagi Shashi Gupta Anurag Gahlot Sanjeev Mathur R.S.Saini
PKC- Finance PKC- Sales PKC- Advance Chief Technical MSSL- Purchase MSSL- Human MSSL- Manufacturing MSSL- Quality & Engineering Engineering Officer Resource Assurance & PE
3 Staying Resilient In Tough Times
Together against Covid 19 People Supporting our people to stay safe and bounce back quickly.
Customers Ensured business continuity of our customers even in highly challenging and adverse conditions.
Suppliers Regular communication and support for safe resumption of supplies.
Community Extended support to government initiative helping the community
4 2015 – 2020 : A Sneak Preview
5 2015-2020: Global Market Expansion
2,830 USD Million 2015 2020 CAGR: 19.4%* Countries Countries
14 22 1,166 Outside Facilities Outside India Facilities India 46 77
Human Capital India India Human Capital
35,263 20142014-15-15 2019-20 81,549
* CAGR of 23.0% in INR terms Consistently growing faster than the industry.
6 Expanding Business Portfolio MEDIUM DUTY TRUCKS EXCAVATORS RECREATIONAL VEHICLES OFF ROAD VEHICLES MIRRORS PREMIUM BIKES UTILITY VEHICLES LIGHTING SYSTEMS COMMERCIAL VEHICLES TRACTORS MOTORCYCLES ROLLING STOCK MEDICAL EQUIPMENT BUSES ENGINE FORKLIFT HVAC EARTHMOVERS DUMP TRUCK ELECTRIC MOTORCYCLE PASSENGER VEHICLES LIGHT DUTY TRUCKS BACKHOE MARINE ENGINES MEDIUM DUTY TRUCKS VANS UTILITY VEHICLES LIGHTING SYSTEMS 1000+SCOOTERS MEDICAL EQUIPMENT customers BUSES FORKLIFT ENGINE HEAVY DUTY TRUCKS 5 ELECTRIC MOTORCYCLE Continents PASSENGER VEHICLES TRACTORS BACKHOE PASSENGER CARS ELECTRIC TRUCKS EXCAVATORS PREMIUM BIKES UTILITY VEHICLES MEDICAL EQUIPMENT ENGINE WHEEL LOADERS ROLLING STOCK LIGHTING SYSTEMS ELECTRIC MOTORCYCLE VANS MOTORCYCLES DUMP TRUCK THREE WHEELERS PASSENGER VEHICLES SCOOTERS VANS TIER 1 BACKHOE PASSENGER CARS HEAVY DUTY TRUCKS EXCAVATORS BUSES TRACTORS UTILITY VEHICLES PREMIUM BIKES LIGHTING SYSTEMS COMMERCIAL VEHICLES TIER22 1 MOTORCYCLES MIRRORS MEDICAL EQUIPMENT BUSES ENGINE FORKLIFT VANS HVAC BACKHOECountries EARTHMOVERS TIER 1 COMMERCIAL VEHICLES COMPACT TRACK LOADERS SCOOTERS SCOOTERS LIGHT DUTY TRUCKS BACKHOE PASSENGER CARS MEDIUM DUTY TRUCKS EXCAVATORS EXCAVATORS OFF ROAD VEHICLES MIRRORS PREMIUM BIKES UTILITY VEHICLES LIGHTING SYSTEMS COMMERCIAL VEHICLES VANS PICK-UP TRUCK MOTORCYCLES ROLLING STOCK MEDICAL EQUIPMENT BUSES SCOOTERS FORKLIFT VANS HVAC SYSTEM HEAVY DUTY TRUCKS ROLLING STOCK DUMP TRUCK ELECTRIC MOTORCYCLE PASSENGER VEHICLES TRACTORS COMPACT TRACK LOADERS LIGHT DUTY TRUCKS TWO WHEELERS BACKHOE PASSENGER CARS
7 Wider customer spectrum. Broadened Footprint
Lithuania Estonia Poland Finland Russia
FY 2014-15 FY 2019-20
UK 14 Japan Ireland Countries South Korea Italy China 22 Germany USA Hong Kong Countries Serbia Mexico Thailand Singapore 46 India Brazil Sri Lanka Facilities UAE 77 Facilities
Newly added Locations
Strategically Positioned Facilities in Key Geographies
8 We had a dream. We realized it.
9 Time to dream bigger.
WHD
2020 – 2025 : Envisioning the Future
Business in India
10 Indian Mobility Industry On Move
Government spend on infrastructure
Multitude of factors Comfort & safety trends driving industry growth
Environmental and Sustainability concerns
Rapidly evolving mobility landscape
11 Indian Mobility Industry On Move
Increasing end user aspirations
Entry of new global OEMs Multitude of factors driving industry growth Light vehicle production forecasted to grow more than 50% by 2025 compared to 2020*
Passenger Increasing vehicle vehicles penetration per 1000 people to increase
Rapidly evolving mobility landscape Source: * IHS Markit, Forecast October 2020
12 WHD- Poised To Grow
• Maintain preferred solutions provider status in the market.
• Increase share of business with existing customers.
• Secure business from new customers.
• Enter new market segments.
• Increase content per vehicle.
Photo: courtesy Chartoff-Winkler Productions
13 Alignment with future needs
14 Inhouse Engineering Capability
• Pioneers in FSS* Capability with largest pool of experienced guest engineers.
• First to bring in design and manufacturing of advanced wiring harness parts.
• We have § executed global EV programs from India.
§ connected solutions for • Faster time to market. PV, CV, 2-W & off • Local service to customers globally. highways application. • Co- creating value add solutions with OEMs.
* FSS: Full Service Solutions 15 Strong JV partners supporting with cutting edge solutions.
Global wiring harness supplier for Passenger Vehicles. Global wiring harness supplier to Hyundai & Kia.
16 Product Portfolio To Support Emerging Trends
• Hybrid and Electric Vehicle Harness Solutions.
• Infusing wire-less technologies.
• Enriching user experience through semiconductor based SMART technologies.
Supplying serial production high voltage wiring harness.
17 Cost Competitiveness And De-risking
• Investing in vertical integration.
• Geared with futuristic made in India product portfolio.
Supplying serial production SMART Junction boxes for vehicles produced for India and
Image: Smart Junction Box Line, Chennai overseas market.
18 Well positioned to serve new market segments- Rolling Stock & Aerospace.
• Expand existing rolling stock footprint from • Encouraging customer interest in Motherson Europe and North America to India. capabilities. • Manufacturing facility certified to aerospace standards.
19 Strategically Positioned Near Customer Locations
Gujarat | Madhya Pradesh Haryana | Rajasthan | Uttar Pradesh
Maharashtra | Karnataka Andhra Pradesh | Tamil Nadu
OEM Locations WHD Manufacturing Locations
20 Source: https://www.investindia.gov.in/sector/automobile Capability To Expand Capacities Rapidly
• Vast experience in setting & ramping up green field facilities.
• 8 Greenfield projects from 2016 to 2019
• Organization and managerial bandwidth to successfully manage multi location, multi geography Noida Noida operations. Sector 85 Sanand Sector 85 Indore I Indore II Indore III Anantapur Chennai III
2016 2016 2017 2017 2017 2019 2019 2019
21 Managing Complex Operations- Power of IT
• Realtime seamless flow of information enabling management of widespread operations.
• Consistent, robust and efficient business processes.
• Leaner value chain through Advanced Supply Chain Planning.
• Waste reduction through process automation.
22 Future Ready Competencies & Skill Sets
• Continuous alignment of skill and competencies with emerging business needs.
• Homegrown competent and experienced management pool.
• Enriched treasury of tribal know-how.
Image: Product Engineering, Noida
23 Operational Excellence Through Best Of East & West
• Experienced global teams working together - to ensure consistent processes across geographies. - to create futuristic manufacturing technologies.
24 48K+ brains working in tandem to enhance value.
25 Optimizing Capex Outflow
• Inhouse machine and equipment building.
• Enabling customers with unique processes.
• Just right for specific needs.
• High quality, high productivity, ensured safety.
• Significant cost merit over standard equipment.
Image: Compact Point Guide
26 Focus on ROCE- To Cultivate Crops of Success
• Cost optimization through practice of C2A2C (cut cost at all cost).
• Waste elimination- part and
Image: Agni Quality Circle, Faridabad parcel of daily life.
• An opportunity to improve- always, everywhere.
27 Financial Strength To Fuel The Growth
• Strong financials.
• Good internal accruals.
• Optimized working capital and capex outflow.
• High ROCE operations- faster payback.
28 India Business- To Summarize…
Market Size Expansion
Vehicle Content Business Growth Enrichment
Technological Leadership
29 WHD
2020 – 2025 : Envisioning the Future
Business Outside India
30 Global Growth Drivers
31 Changing Landscape In International Mobility Markets
Electrification/ Digitalisation Alternate drivetrains
32 Rapidly Growing Addressable Market
USD Billion
CAGR : 6.7% 73
52
Huge market potential to grow.
2019-20 2024-25 Current WHD Global Wiring Harness Market Revenue: $3 Billion
Source: Company own assessment based on industry sources
33 Rapidly Growing Addressable Market Wiring Harness Market- EMEA USD Billion CAGR : 6.4% 22 Wiring Harness Market- Americas 15 CAGR : 6.2%
19 13 Significant growth 2019-20 2024-25
opportunities Wiring Harness Market- APAC in all 2019-20 2024-25 CAGR : 7.3% geographies • Grow with market. 32 • Enhance content per vehicle. 24 • New customers, segments & products. • Competent JV partners in China.
2019-20 2024-25 Source: Company own assessment based on industry sources
34 Rapidly Growing Addressable Market
Addressable market: • Expanding rolling stock $5327 Million footprint to newer WHD geographies. Share: $176 • Growing business with Million existing customers. • Market consolidation.
Source: Company own assessment based on industry sources
35 Image Source Sutterstock_159267050 WHD- Poised To Grow Outside India
• Global manufacturing footprint in all major geographies. • Strong relationship with existing customers. • Technological readiness for alternative powertrain. • In-depth knowhow and expertise to manage complexities. • Leveraging global capabilities to create optimized and cost competitive solutions. • Customer confidence in capabilities to manage and turnaround acquisitions.
36 Business Consolidation
37 Mr. Frank Sovis Mr. Duncan Reid President, COO, PKC Group MWSI North America North America
38 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
39 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
40 Tree Planting - Monclova Inculcating Quality Circle - Acuna Motherson DNA & culture
Nandi Ji Statue - Acuna Hearts and Minds
41 6R Training - Torreon Inculcating John Deere Relationship Celebration Motherson DNA & culture
Quality Circle - Monclova Leading with Hearts and Minds
42 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
43 APEX APEX Meeting - Brazil Management APEX Meeting - Acuna team driving excellence
Representing Multiple Countries APEX Meeting - Serbia with One Common Goal
44 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
45 PKC Daimler Quality Award 2020 Winning Volvo Supplier Award customer confidence
MWSI Navistar Supplier Award
46 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
47 KC Lakshmikantha Inauguration of Basic Skill Value Stream Workshop Best Practice Training Centre, Lithuania Exchange
Copper Reclamation Initiative MWSI Visit to India
48 MWSI Machine MWSI Turn Around Runtime Workshop Best Practice Award Presentation Exchange
Rajesh Sharma Visit to Teaching and Learning from Acuna Wire Plant Each Other
49 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
50 MWSI Turnaround Award Enhancing PKC ROCE Cup Award Financial Prudence
MWSI ROCE Cup Award PKC Finance Managers Conference
51 Successful Integration- Driving Exceptional Results
Continuity of Inculcating management Motherson team DNA & culture
APEX Enhancing Integrating Management Financial acquired business team driving Prudence entities excellence
Winning Best Practice customer Exchange confidence
52 PKC Ops Management Continuity of MWSI Saltillo Management Team management team
PKC Finance Managers Conference
PKC Senior Leadership Conference MWSI Leadership Team
53 Learn together. Collaborate. Grow together.
54 Integration of Acquired Entities
MWSI USD Million PKC EURO Million Pre Acquisition* Post Acquisition Pre Acquisition Post Acquisition Revenue/Adjusted Revenue/ Adjusted EBITDA % EBITDA % 296 1500 20% 300 248 20% 1191 15% 200 15% 1000 846 100 10% 10% 13% 5% 500 10% 5% 0 0% 7% EBITDA % EBITDA % Revenue & Revenue -100 -2% -5% & Revenue 0 0% CY13 FY20 CY16 FY20 Revenue EBITDA % Revenue EBITDA % Turnaround 60% 30% 43% Integration 23% 40% 20% 20% Consolidation 8% 0% 10% ROCE % ROCE ROCE % ROCE -20% -15% 0% CY13 FY20 CY16 FY20
40 33 60 49 30 40 20 FCF 10 FCF 20 14 0 0 CY13 FY20 CY16 FY20
Notes: *2013 figures are for calendar 12 months period under Stoneridge
55 Aligning With Emerging Business Dynamics
56 Strategically Located Design & Development Centres Outside India
North America USA Europe Mexico Germany Poland Estonia Finland Italy
D&D Centres in Japan close proximity to the customer- collaborating for China speed & value enhancement.
57 Innovating Manufacturing Technologies
Smart Assembly Tooling
• Flexible assembly tooling.
• Release of investment trapped in tooling.
• Faster order to delivery time. Digital solutions- • Improved workability. flexibility & faster time to market.
Image: Digital Board, PKC
58 Innovating Manufacturing Technologies
Smart Glasses
• Step-by-step virtual work instructions.
• Reduced reliance on memory- capability to manage complex products. Digital • Improved Quality. solutions- faster learning • Enhanced Productivity. curve, breathe with the market.
Image: Smart Glasses, PKC
59 Innovating Manufacturing Technologies
Managing Complexity
• Tailored Data Management System for easy, error-free and efficient operations.
• Dynamic visual aids for associates.
• Process Automation- faster Framework change management. enabling Industry 4.0 • Cost optimized manufacturing routines.
Image: PKC, Brazil
60 Innovating Manufacturing Technologies
Inspection
Line 1 Warehouse Line 2 Logistics Office Super Market Line 3
Cutting & Crimping Smart Factory Line 4 Syndicate Room • Minimal human intervention.
• Managing key indices Warehouse Office online.
Line 5 • Remote monitoring & Line 6 management. IOT enabled manufacturing P15-5X • Proactive decision making. Packing Dressing Room space. Chassis 2 Office
Chassis 5,6,7
Chassis 3,4 Engineering
61 Vertical Integration - Global Footprint
Europe China Components Components Power Distribution Module Wires Protection & accessories Protection & accessories
North America India Components Components Wires Wires Power Distribution Module Power Distribution Protection & accessories Module Protection & accessories
Sri Lanka • Fast, slim & de-risked supply chain. Wires • Quick response to demand changes. UAE • Shortened development time. Protection & accessories
62 Outside India Business- To Summarize…
Increase New share of customers & business- new existing segments customer
Business Growth Relationships Market with global consolidation OEMs
Emerging technological solutions
63 Customer Delight- Purpose of existence
64 Customers acknowledge & appreciate our efforts… Paccar SPM Masters Award “PACCAR works closely with suppliers to produce the highest Daimler Group JMC MCI Dongfeng quality products in the industry. We appreciate the SPM Achiever suppliers for attaining that performance level in 2019, and in particular, the 16 suppliers that achieved SPM Master and Leader status.”
Masters of Best Quality Supplier Business Partner Excellence Supplier Brilliant Contribution -Darrin Siver, Quality Zero PPM of the Year Development Partner Performance Award- Award PACCAR Senior Vice President. Silver
Paccar Sany SAIC Maxus JAC Daimler Global Award for Innovation "From idea to innovation—that's PKC! You supply the state-of-the-art cable harnesses for our North American business. Through new design methods, you convert flexibility into SPM Leader Quality Best Supplier Excellent Part Best Quality speed. Thank you for establishing our Award Achievement Award Supplier Award Development Contribution connection to the future and advancing our truck business! "
-Dr. Marcus Schoenenberg, Vice President Global Procurement Trucks & Buses
65 Customers acknowledge & appreciate our efforts… Bombardier Transportation Foton Volvo Eicher Ashok Leyland Diamond Supplier “I am very pleased about the constructive exchange with our most important players in the supply chain. We see this as confirmation of our partnership and look Excellence Quality Best Quality Best Quality Outstanding Performance Best Supplier Best Poka Best in Class Partner Award Gold Award Contribution Award New Product Development Award Yoke Performance in forward to future Delivery collaboration with them, contributing to business excellence and on-time Tata Motors Alstom Asahi India Honda India Power Products delivery to our customers.”
-Jim Vounassis Chief Operating Officer
Quality Quality Improvement Energy Supply Chain Award for Zero Supplier Award for Proto Supplies Champion Award Performance Award Defect Performance Award
Honda Motorcycles Suzuki Motorcycle India Yamaha Navistar Diamond Supplier
Strong CR efforts in Quality Award Excellence Award for localization Quality Performance 66 Customers acknowledge & appreciate our efforts… Daimler Volkswagen Ford Toyota Honda Cars PSA Group Maruti Suzuki Toyota Honda Cars Renault Nissan Mahindra
Regional Supplier of the Year Best Cost Contribution Award Silver award Performance Maruti Suzuki Overall Part Supplier of the Zero PPM Gold Customer Quality & Customer Supplier Performance Partners for Asia Excellence in Quality Innovation & Global QualityDevelopment YearCertificate -Silver for CertificateAward for GoldAward Award Satisfaction Satisfaction Excellence Award Technology Award Excellence ZERO PPM Award Quality Delivery from Honda Best Supplier And Quality (Mind-set Award) Ford John Deere JCB TAFE CNH Industrial Maruti Suzuki GM Renault Mahindra Nissan Hyundai Tata Motors
Performance Award
Q1 Certification- Achieving Excellence Excellence in Quality, NQCRPM Chairman’s Award Best Benchmark Super Award Preferred Quality Partner-Level Delivery, Wavelength, Award Special Citation of Award for VAVE Hyundai Recognition Technical Support & Distinction Status Cost Management Supplier Quality Supplier of Supplier Excellence Supplier Quality Overall Best Overall Best Overall Performance Part Development Excellence Award the YearCaterpillar Award Quality Award Award AwardTata Hitachi Performance AwardKobelcoQuality Award Komatsu Same Deutz Performance Award
Best "APQP” SQEP (Bronze) Sustained Preferred Best Performance Pancharatna Award for Performance Performance Business Partner in Delivery "Best in VA-VE”
67 on Quality Sustainable Value Chain Together creating a positive impact.
Committed to be better with each passing day.
• Focus on QCDDMSES- paving strong GROWTH foundations.
• Strong corporate governance- ethical & moral conduct, every time & everywhere.
• Engagement in upstream and down stream supply chain to promote sustainable business practices.
• Supporting the communities we operate in.
68 Envision, Execute, Accomplish
What we said in 2015 Where have we reached today 2017 01 Global market 01 ● Non Passenger car business expanded across\ 2015~2020 expansion geographies ● Leading Supplier to Commercial vehicle segment Successful turn around and integration of ● 22 countries, 70 manufacturing facilities acquired entities. 02 Consolidation 02 ● Successful integration of MWSI • WH business of Stoneridge, USA (now ● Acquisition of PKC Group MWSI). USD 248 Million ● Entry into China Market • PKC Group. USD 1323 Million 03 Increased component 03 Added new technologies- over foaming harnesses for • Interior and Cabling Business of Bombardier content engine applications, Vehicle electronics- smart Power Distribution Centres, aluminum cables etc. Transportation Rolling Stock (BTROS) at Derby, UK. USD 60 Million 04 New customer 04 ● New customers added across geographies and penetration segments ● Two new segments added- Rolling Stock & Recreational Vehicles Global Market Source: Update on Vision 2020 Meet- Nov’17 Expansion 1907 Consolidation 5x 399 Increased Component Content USD MILLION New Customer Penetration Revenue outside India
Market Relevant Product Offerings New Segments & New Customers
69 Summary 2020~2025: Growth through Robust Business Model and Execution Mind Set Motherson Wiring Harness Division Consistent execution of strategy.
Uniquely positioned to unlock value. § We dream § We execute Consistently increasing product value content. § We deliver
Continuing to deliver sustainable value creation. a trustworthy Partner in growth….
70 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Proud to be part of the Future
Vision Systems Division Investor Meet 2020 1 2
Main focus areas
01 Exterior mirrors for cars One of the largest 3 experts in the world
02 Interior mirrors High-volume expert in Europe, India and Korea 3 4 03 Exterior mirrors for light commercial vehicles From simple to multi-functional
04 Camera monitoring Systems Pioneer with one of the first systems in the market
73 The division’s operations today.
19% of Group revenue
7800 employees
22 facilities
Our specialised companies JV Partners
Samvardhana Motherson Reflectec (SMR) NBHX (China)
74 Experienced leadership.
Char Zawadzinski CEO SMR
Ravish Parvez Rajan Batra Enrique Flores Alejandro Lomas Gaurav Gulati Michael Lady EVP Global Sales EVP Global Finance EVP Global Eng. & Quality EVP Global Purchasing EVP Business EVP Global Process Optimization Human Resources
Rajat Jain Sai S. Tatineni Stephan Gonzalez Tibori Pal Levente Puneet Saim C K Han Xu Wenzhong EVP North / South America EVP West Europe EVP East Europe & Germany EVP South Asia EVP North Asia EVP East Asia COO SMR
75 Revenue Growth. Growing revenues across all geographies exceeding market performance
2015-20 Figures in € ‘billion 87.9 - 4.1 mn 83.8 2 .0 0 CAGR -1% 9 0 .0 + 22.3 mn Growth* 65.6 CAGR 6% 1.70 € 380mn 7 0 .0 1 .6 0 0.16 CAGR 5.3% 1.32
5 0 .0
1 .2 0 0.08
CAGR CAGR 16% 3 0 .0 3x
5.3% 0 .8 0 Organic 0.63 1.54 1 0 .0 # 0.01 1.24 Growth
0 .4 0 0.61 ( 10 .0 ) Mkt. CAGR -1% - ( 30 .0 ) 2009-10 2014-15 2019-20
Revenue w/o JV JV Sale in China* Light Vehicle Production (in million) 1
*JVs total sale in China consolidated proportionately till 2014-15 under Indian GAAP Journey so far. # since acquisition 76 1 Source: Light Vehicle Production: IHS Markit, Forecast October 2020 77 Capacities established for growing with Customers Globally.
ChinaChina HungaryHungary BeijingBeijing / Langfang France UK MosonszolnokMosonszolnok NingboNingbo (SMR (SMR NBHX NBHX East) East) Dammarie-Les-Lys Portchester MosonmagyarovarMosonmagyarovar YanchengYancheng (Paris) Turkeve USA ChongqingChongqing (SMR (SMR NBHX NBHX Central) Central) Marysville (MI)
South Korea Bucheon (Seoul) Chungcheongbuk-do
Spain Mexico Epila San Luis Potosi Thailand 1012 Countries Rayong 1422 India Manufacturing 2019-2020 Chennai 12 countries Noida (Delhi) facilities 22 facilities Bangalore Pune Gujarat 2009-2010 Brazil 10 countries Jaguariuna (São Paulo) Australia 14 facilities Greenfield Expansion Lonsdale (Adelaide)
78 Brownfield Expansion Manufacturing and assembly plants Manufacturing and assembly plants commissioned prior to 2010 Value Creation.
Vertical integration 27% grown “6x” Of Material since acquisition Spend
6.0x 300
250 4.5x
200
150
100 x Quality Controlling Improved 50 and Cost Key Technologies Margins 48 218 293 Control 0 2009-10 2014-15 2019-20 IC Spend* * including wiring harness Figures in € ‘million Recognitions & Awards. Diversified customer base.
1 ,8 0 0
€ 1.70 bn Following OEMs
1 ,6 0 0 in new Increasing Hyundai Geographies 3CX15 CAGR 4.9% Order Book 1 ,4 0 0 € 1.32 bn Ford
1 ,2 0 0 Daimler Added New
1 ,0 0 0 GM Customers
VW 1.48X
8 0 0 CAGR 15.5% Nissan € 0.63 bn More Programs BMW 6 0 0 with Kia Existing JLR Customers Chrysler 4 0 0 Volvo Renault Audi PSA
2 0 0
Others 2014-15 2019-20
- Order Book* 2009-10 2014-15 2019-20
81 * Source: Company estimates Journey so far. Profitable Growth with financial discipline.
Figures in € ‘million Revenue* 94 95 93 1,800 88 89 100 81 86 84 1,600 76 78 90 1,400 66 80 70 1,200 60 1,000 50 800 1,575 1,575 1,604 1,541 1,393 40 600 1,276 993 1,119 30 400 860 620 755 20
Revenue 200 10 - - 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Revenue Light Vehicle Production (in million)1
Profitability 11.6% 11.3% 11.7% 200 10.5% 10.9% 12.0% 9.6% 9.8% 160 10.0% 6.9% 6.5% 8.0% 120 5.7% 5.0% 6.0% 183 182 80 171 180 146 125 4.0% 107 40 64 2.0% EBITDA 35 52 43 - 0.0% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
EBITDA EBITDA Margin
* reported numbers 82 1 Source: Light Vehicle Production: IHS Markit, Forecast October 2020 Profitable Growth with financial discipline.
60% ROCE Figures in € ‘million
47% 48% 50% 45% 43% 41% 40% 34% 30% 30% 23%
20% 15%
ROCE 11% 10% 6%
0% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
113 120 Free Cash* 100 92 75 77 80 63 54 60 33 40 20 3 - (20) (12) (40) (30) (60) (80) FREE CASH (100) (82) 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
* Operational Free cash adjusted with exceptional items 83 Way ahead to VISION 2025.
Focus on Enhanced Sustainability Vertical Integration Wider Efficiencies Customer through Base Digital Expand in Focus on transformation New New Geographies Technologies Key Enablers: Revenue Growth. M&A
Increasing Content
Market Growth New Technology
High Growth Segments
New Geographies
2019-20 2024-25 2024-25 Opportunity in South Africa.
Motherson presence: MSSL
No Global Automotive Exterior Mirror Supplier in S Africa Market of Customers Opportunity Market Size * push for for 600K Euro: 50m* Green Vehicles localisation Field
* Source: Company own assessment based on industry sources Opportunity in Russia.
Motherson presence: SMRC
No Global Automotive Exterior Mirror Supplier in Russia Market of Registered Customers Market Size office in push for 1.7m* Euro: 85m* St. Vehicles Petersburg. localisation
* Source: Company own assessment based on industry sources Opportunity in Turkey.
Opportunity for Visions system vertical to be on its own in Present Market of Market Size: through Turkey 1.2 million* Euro: 60 m* license Vehicles agreement
* Source: Company own assessment based on industry sources Opportunity in Japan.
>25.00% 9.00% Local presence essential to address this market SMR share in Japanese OEMs Market of Japan O EMs S hare of G lobal Market Size: Volume 8.3 m* Other OEM Share @ SMR Euro 600 m* Global OEM Production Vehicles
* Source: Company own assessment based on industry sources Opportunities in Pick-ups & SUVs.
Vision Systems has the exterior mirror supplied to more than one-third* SUV CAGR of the SUV mirrors is 50%* Pick-up/SUV are higher in higher than segment content Passenger Car
* Source: Company own assessment based on industry sources New Energy Vehicles: Adding new customers.
More than one third* of yearly globally produced EV’s have exterior mirror of SMR New Energy Vehicles CAGR > 30%*
* Source: Company own assessment based on industry sources Opportunity with Chinese OEMs.
> 40%
Local Chinese OEMS* Global OEM Production* Opportunity to grow with Chinese Premium sub Chinese OEMS OEMS continue brands of Chinese in China to have 40%* OEMS need share of total Technology production suppliers
* Source: Company own assessment based on industry sources EcoMirror Size Reduction Next generation 30% mirror Weight Reduction 20%
1g of Launched first two CO2 programs with Eco Mirror reduction on New Energy Cars. per km
Working on this technology with customers on next generation vehicles.
Image source: https://www.polestar.com/ Nomination of serial Programs in First CMS 2017 program launched on passenger vehicle
58 CMS / ADAS patents Picture is symbolic for Motherson‘s CMS solutions and not representing the OEM design 2nd program on Commercial Expected Market size of Vehicle will be launched > $ 1 billion in 2021 by 2030 Increasing Content.
Blind Spot Side Turn Monitoring Indicator
Logo Lamp Camera 2 in 1
Surround Light
Feature content penetration Opportunity to increase creating Memory Actuator vertical higher value Low-noise Power Fold Integration by 1.2X > 30% Customers trusting us to do more.
Customer Comprehensive Trust Footprint
Experienced Regional Leadership
Established Controls and Significant Processes Free Cash Operational Generation excellence Key Enablers: Profitable Growth.
ROCE Operational > 40% Excellence Higher utilization of available capacity Increasing Content
Financial Discipline Increasing vertical integration
2019-20 2024-25 Family. “We stand together and support one another”
Proud to be part of Motherson Family. Employee Engagement. “People are our biggest strength”
Employee Engagement Improvements 2015 ð 2020
Rate of Participation +37% Engagement Scores +10% Corporate Social Responsibility.
“Giving Back” Sustainability. A priority for Vision Systems Division
Subscribing to Customer’s Carbon-Zero Initiatives Ensuring Global Monthly Sustainable KPIs to track major CO Supply Chain 2 with our suppliers drivers. Vision Systems committed to better itself every passing day ISO14001 & O Engaged in the 45001 Carbon Disclosure Certified in all since program operations around C 2014. the world. O Commitment to Ethics & Human Rights Conclusion / Roadmap 2025 Vision Systems
01 02 03 04 Business growth Integration of Adjacent Diversification in current new technology expansion into new Contribution to product lines + content within + + segments & new = existing product markets $ 36 bn segment
• Market growth • Camera Monitoring § New geographies • Advance surface System technology • Increase in Content § Japanese OEMs • EcoMirror • Automotive camera • New Energy Vehicles § Local Chinese OEMs market • Lighting technology • Sports Utility vehicle
102 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Proud to be part of our customers’ success
Modules & Polymer Division Investor Meet 2020 Modules & Polymer Division
Provides Interior and Exterior Modules and Systems focused on the Automotive industry
105 The division’s operations today
51% of Group revenue
32,000 employees
96 facilities
Our specialised companies JV Partners SMP SMIA CTMIL CEFA SMRC MAE MMDL CPAT MATE MEPL YSAT
106 Experienced leadership
Char Zawadzinski Eric Auzepy Amit Bhakri CEO SMP COO SMRC COO MATE
Horst Morgenroth Sunil Vijay Devender Singh COO SMIA COO MAE & MEPL COO CTMIL & MMDL
107 Chapter 1 Foundations and achievements
108 Modules and Polymer specialized companies Combine expertise on a wide variety of product lines
SMP SMRC MATE Multiple further offerings… up to 150 parts per car!
Door Panels p.a. >4 mn vehicle sets
One of the largest suppliers of Global interiors expert for Leading supplier of interior and bumpers, instrument panels and mid/high segments and exterior plastic components, Instrument Panels door panels to the decorative surfaces Supplying basic/mid p.a. premium segment segments globally ~6 mn
MAE CTMIL Bumpers p.a. SMIA MEPL MMDL >8 mn
Center and Floor Consoles p.a. ~3 mn
Roof Rails p.a. Leading specialist suppliers of Molded rubber parts for High precision injection extruded and injection-moulded automotive, medical, white moulding tools from 10 tons to ~0.5 mn exterior and goods & other industrial 3200 tons, soft tools, jigs interior components applications and fixtures
109 Our Customers Internationally trust our expertise in Module Solutions since 60 years
1st part for PSA 1st business with 1st business with in 1959 Volkswagen in 1970 Maruti Suzuki in 1989
110 Image source: https://www.flickr.com/photos/andreboeni/ Image source: https://www.flickr.com/photos/152930510@N02/ Since 2015: Revenue to Premium Segment organically grew by $1Bn supported by…
Footprint Innovation Expansion
Interior Global Tuscaloosa & Exterior Kecskemet Mercedes (United Porsche (Hungary) E-Class States) Taycan / Door Panels 911
111 Reydel acquisition – now SMRC – did reinforce business with French OEMs
… Reydel acquisition
Image source: https://www.flickr.com/photos/55391407@N03/ We Delight Customers in Mid Segment and in Entry Segment
Design to Cost Solutions
113 Image source: https://www.renault.co.in/cars/renault-triber/design.html Three acquisitions brought $1.3Bn additional Revenue by 2020 Inorganic Growth
January 2015 January 2017 August 2018
Scherer Kobek Lighting Reydel & Trier Technology
Now: SMIA Now: Motherson Now: SMRC Interior & Exterior Innovations Lights Decorative Expert
114 Modules & Polymer Division grew its Gross Revenue in 5 years from $3.4 billion to $5.7 billion 2025
2019/20 More to 2014/15 come 24 Countries 13 Countries 32,000 $ 5.7 Bn Order Book Workforce Gross 20.000 $ 3.4 Bn Revenue +21% Workforce Gross 96 Revenue Manufacturing 67 Plants Manufacturing Plants
115Revenues presented before IFRS 15 adjustments Chapter 2 Our Vision 2025
116 We Aim to enhance our Global Presence in the USA, China, Eastern Europe, Africa and India
Eastern United Europe, China States Africa and India
Increase Enhance Diversify Expanding Focused Footprint Interior Footprint Customer in a growing Strategic through and exterior Expansion portfolio market Investments M&A proposition
117 We will also enhance our Customer Base by focusing on white spaces with American and Asian OEMs
Listening to the voice of customers
118 Heavy Commercial Vehicles: Further capitalisation of our comprehensive interior and exterior product
portfolio Sun Visor
Door Instrument Panel Panel
Outside Handle Elastomer Parts Wheelarch Liner
Front Grille Foot Step
119 To reach our 2025 goals we develop and introduce a comprehensive portfolio of new Products & Vision Technologies 2025 to increase value-add and content in the cars’ interior and exterior
120 Our latest and future Interior Solutions increase the content and value we deliver to our customers
Sensors integration
Ambient lighting
121 Our latest and future High End Premium Vehicle
Audi A8
Elegant Decoration
sewing and wrapping
122 Image source: https://www.audi-mediacenter.com/ Our latest and future High End Premium Vehicle
Lightweight Instrument Panel
BMW i8
Futuristic Console
123 Image source: https://www.press.bmwgroup.com/ Our latest and future High End Premium Vehicle
Mercedes E-Class
Illuminated Door Panel Light Weight
124 OurOur latest latest and and future future
InteriorInterior SolutionsSolutions TOF SENSOR FOR FuturisticFuturistic CockpitCockpit DRIVER AWARENESS WARNING
EYE-TRACKING FOR ACTIVATING DISPLAY FEATURES
TRIMSCREEN EXPANDING DASHBOARD DISPLAY FAR-VISION HOLOGRAPHIC REARVIEWTRONIC HEAD-UP CONFIGURABLE DISCRETESENSE DISPLAY DISPLAYS INVISIBLE TOUCH CONTROL EMPATHIC INTERFACE
125 Our latest and future Exterior solutions will facilitate CO2 emission reduction and reinforce new energy vehicles identity
Lightweight design spoilers enhancing Integrating Aerodynamics Sensors
126 Image source: https://www.porsche.com/ Our latest and future Exterior solutions will Support Autonomous Vehicles Development Bumper 2025
Illuminated Aerodynamic bumper Bumper Design
Camera & Radar hidden Behind painted bumper
127 Our latest and future Exterior solutions Plastic Tailgates
Products Under Development
128 We increase value per car by transferring know-how from Premium segment to mid and entry segments
Premium Segment Mid Segment Entry Segment
Know Know How How Transfer Transfer
Image source: https://www.porsche.com/ Image source: https://de-media.opel.com/ Image source: https://www.nexaexperience.com/
129 Our Tool rooms fulfil OEMs requirements and offer full in house solution from design to launch.
Backward Integration and Value add
130 Growth opportunities for our Elastomer products are huge in various industries
Front Drain Tubes Products Under Development
Back Drain Tubes
131 M&A will be an important growth driver for Modules & Polymer Division
Leveraging Customer Expanding AddingAdding Expanding Market supported Portfolio technologytechnology consolidation M&A Portfolio bricksbricks
132 Our Operational Efficiency initiatives are key to ensure profitable growth and improved ROCE
Continuous Industry 4.0 improvement
Balancing Maximizing Industry capacity Investments utilization
133 Sustainability: we systematically promote Environmental and Social Responsibility
Minimizing CO2 Footprint Health and safety management Neutral Business carbon Ethics emissions at plant Reuse or level recycle Employee solid Engagement waste programs
134 Conclusion / Roadmap 2025 Modules & Polymer Products Division
01 02 03 04 Business growth Integration of Adjacent Diversification Contribution to in current new technology expansion into new product lines + content within + + segments & new = existing product markets $ 36 bn segment
• Expansions in New • Ambient Lighting – • Plastic Pallets • Healthcare Segment Geographies: USA Interior & Exterior • Two-Wheelers • Telecom Segment • Enhance Footprint in China, • Sensor Integration- • White-Goods Europe, India & Africa Interior & Exterior • Vertical Integration: • Elegant Decoration- Cut/Sew/Wrapping Interior • Increase Market Share with • Plastic Tailgate Customer- BMW, Porsche & • Surface finishing Commercial Vehicle • Increase Content per car- Complete Interiors & Complete Exterior Package
135 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Proud to be part of the future
Vertical Diversification Integration New Increase Geographies Content Value Added Product
Lighting & Electronics Division Investor Meet 2020 Lighting & Exterior Lighting Compressor & Electronics Division & Electronics Shock Absorbers
• Largest Premium Lighting Supplier In India. • Among top three Exterior Lighting Supplier. Division Product Overview • 4x Topline growth over the last 5 years in Lighting in a muted market. • Leader in “market firsts” and technology advancements • One of The Largest Shock Absorber Exporter B2C Backward from India. Direct to Market integration • Market Leader in Oil Free Scroll compressors.
138 Creating the Platform
Revenue ~ 2% of Revenue Group revenue
CAGR 19% 240 20 Facilities 118
FY15 FY20 3400+ employees
Numbers converted In Usd Million using average exchange rates CAGR calculated on INR revenues Our specialised companies Our Partners Marelli Motherson Automotive Lighting India Private Limited (Exterior Lighting/Electronics) Calsonic Kansei Motherson Auto Products Limited (Compressor / BCM) Marelli Motherson Auto Suspension Parts Private Limited (Shock Absorbers / Gas Balancers) Anest Iwata Motherson Private Limited (Air Compressors) Samvardhana Motherson Auto System Private Limited ( Trading – Independent After Market) Samvardhana Motherson Auto Component Private Limited ( HPDC Components) Youngshin Motherson Auto Tech Limited (Compressor Clutch Assembly)
139 Experienced Leadership
Alok Khanna Aman Bhatnagar Pankaj Dighe Vishal Kabadi COO, COO, COO, President, CKM MMAS AIM Lighting and Electronics Division Motherson Group
Long Serving Motherson Group Professionals with more than 160 years of cumulative Geetika Mishra Dhanraj N. Gautam Manga Automotive experience COO, COO, COO, SMAC SMAS YMAT
140 Vision + Inorganic 2025. Growth Future Ready New Geographies New Product New Customers Value Content
141 Exterior Lighting Evolution – Creating more value
Price Evolution1 Movement from Commodity to Technology
2010 2015 2020 2025 Head 2.6X Lamp Rear Lamp 1.8X
1.3X
1X Technology Features Signature Styling 1.9X 2.0X
1X 1.1X
FY10 FY15 FY19 FY20
142 Source: 1. Internal Assessment based on certain car models Competitively placed to increase value with enhanced LED penetration
2020 20203 Europe India Halogen 10% Halogen 68% Xenon 5% Xenon 2% 2 LED 85% LED 30%
Impacting Factors: 20111 20103 Europe Emphasis on Road Safety Halogen 92% Halogen 80% Xenon 8% Xenon 19%-20% Emerging Government Regulation LED ~0- 0.1% LED ~1% Demand for Energy Efficient Lights (only Premium car) Rising Automobile Production
Source: 1. Automotive news Europe, Article titled “Automotive Lighting sees jump in LED uptake for Europe in 2020” 2. Collaborator Information 143 3. Internal Estimates Expanding Product Portfolio
2 Wheeler LED Electronic Instrument Lighting* Cluster* Gas Balancers, Brushless Motors ECU & PCBA*
Market Global India Internal Requirements and Buy-back
Market Size 400Mn $ 200 MN $ 150 MN $
2W Segment PV Segment PV Segment
144 * Internal estimate Diversifying Beyond Auto OEMs
Indian Railways & Medical Segment* After Market & Accessories*
Market Size India 9 Bn $ Market Size India 30 Mn $ Market Size Global 114 Bn$
Focus Focus Products: Products: Group Products Locomotive & Telematics Medical air Accessories Compressor Co-Branded products
145 * Internal estimate Serving New Geographies – Focus on Exports
Opportunity size 200 Mn $ Additional Markets 2025 • Brazil • UK • Mexico • Bahrain • Kuwait • Oman Current Additional • Qatar Markets Markets in • Saudi Arabia 2020 2025 • UAE • Sri Lanka • Bangladesh • Bhutan Air Compressor • Morocco Clutch Assy Die Casting BCM Lighting Shock Absorbers
146 Future
Exterior Ready. Lighting Solution
Ready for the E Bus Compressor “E„ volution
Passenger Cars Commercial Vehicles
Shock Absorbers
147 Inorganic Growth.
Follow the Customer + Provide a Solution + focus on QCDDMSES will result in
New New New New Product Segment Market Geographies Line
148 Conclusion / Roadmap 2025 Lighting Electronics & aggregates
01 02 03 04 Business growth Integration of Adjacent Diversification in current new technology expansion into new Contribution to product lines + content within + + segments & new = existing product markets $ 36 bn segment
• Continued focus on • Access to latest • Introduction of • New segment value added global complementary additions products. technologies. product lines Railways/Medical • Increase in share of • Localised • 2 W LED lighting and after market business. Engineering & • ECU’s and PCBA • New geographies • Add new customers. process solutions. • Gas Balancers with focus on • Outpace the growth of the Industry. • First to Market. exports though best cost manufacturing solution. • Leveraging global Motherson facilities.
149 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Proud to be part of our customers’ success
Precision Metals and Modules Investor Meet 2020 Main focus areas
Precision • Technologies & competences Metals and developed over last more than Modules 10 years • Opportunities & Road map for growth • New products /new Technologies • Safety and emission regulations
152 The division’s operations today
146.8 ~ 1 % of Group
INR revenue CAGR 18% 73.3 2456 employees
19 Offices
FY15 FY20
Our specialised companies JV Partners • MS Global • Motherson Techno Tools• Fritzmeier Motherson Cabin Engineering • Samvardhana Motherson Innovative Solutions – Broaches, Gear Cutting Tools and powdered metal sintered parts • Nissin Advanced Coating – Thin metal coating services• MTP G • MTP MEX • MINES
• Valeo Motherson Thermal Commercial Vehicles• Motherson Bergstrom HVAC Solutions
• Matsui Technologies India • Frigel Intelligent Cooling Systems
153 *Nos have been converted to USD using average exchange rates for the respective financials years Experienced leadership
Ajay Bahl - President Modules & Metal Solutions Cyril Xavier Rajeev Goyal Harsh Neb M.Paramasivan – COO – VMTI COO-MTIL COO – MBSL COO - FMCEL
Kunal Sabharwal – Mr. S. Anbarasan Robin Mr. Sumanth Mr. Jens President Mr. Bala COO - MSGI COO - MSTL COO - MINES COO - MTPG & MTP Mex
Shailesh Prabhune – Ajay Dulloo Rajiv Malhotra Vineeth Chandran President COO - NACIL COO- MTTL COO - MATS
154 Modules Body Parts
Precision Machining Process equipments
Precision Precision Metals and Metals and Modules Modules
155 Supplier of Choice
MAHINDRA ACCEPTING NO LIMITS AWARD KOMATSU BEST ASHOK LEYLAND– APPRECIATION AWARDS FROM M/S HYUNDAI PRESIDENT AWARD MAHINDRA OUTSTANDING PERFORMANCE OUTSTANDING AWARD FOR SUPPORT IN QUALITY AWARD BUSINESS ALIGNMENT
CATERPILLAR CATERPILLAR (SQEP) CATERPILLAR WELD EXCELLENCE AUTO COMPONENTS AWARD CERTIFICATION PAINTING COMPETITION
DANFOSS RECOGNITIONS
QUALITY CIRCLE FORUM OF INDIA Ashok Leyland-Gold Award Volvo Eicher –Outstanding NATIONAL LEVEL COMPETITION Contribution Award
156 Precision Metals and Modules: Divisional Competencies .
• Segment Combining • Coverage Competencies • Content up Delivering • Cross selling Solutions • New products Gearing for Growth Precision Machining
MTTL-Turning, Milling, Body Parts Drilling Tools
MSGI – NACIL- PVD Sheet metal coating structural parts SMISL- Sintered / Gear cutting / Modules Broaches
MTPMEX/MINES/ FMCEL– Cabins / MTPG/ – Fabrication Parts Process Equipments Precision Machined Parts VMTI,– HVAC MTIL– Auxillaries for systems Polymer Processing for Buses MBSL – HVAC systems FICS- Process for Cooling solutions Trucks and Off-road Modules: Road Map -Safety Operator Cabins
Design Tooling India Tooling Mkt Size 8 Axis bending $1 Bn
3D Laser cutting ROPS Complex CED Painting & Fabrication FOPS Safety Welding
Complex assembly New Supply chain management Geographies
Market Penetration
Plug & New Play Segments Fuel & Hydraullic Tanks
159 160 Modules: HVAC Systems
Advanced Electric Refrigerant Vehicle 60,000 Truck Refrigerated truck Ozone Friendly Market* Refrigerant Fast Growing Market 2024/25
GROUP SYNERGY
Now 161 * Internal estimate Body Parts: In Pursuit of Global Play
• Cold Stamping Skin Parts Chassis Structural • Hot Stamping 1 2 1617 5 6 3 4 2324 26 • Laser Cutting 7 8 910 1415
• Welding 1112 2728 13 2930 3132 • Powder Coating 18 1920 2122 25 • Frame Assembly
Global Vehicle – body Specialist Phase II
1st Production line with 3 Development of Hot trimming technology Stamping customers for structural parts to do inner parts Global 2019 2023 2025 Mkt Size Development of Tooling Technology Development of Tooling Technology $150 Bn and Large Volume Production And Global manufacturing footprint Phase I Phase III
162 Company own assessment based on industry sources” Precision Machining: Complete Solutions
Turnkey Projects for Customers New Grades Application / in many Technologies sectors & Methods apart from Automotive
Cutting Tools Drilling, Milling, Turning
Machining Broaches & Gear Expertise under one Cutting Tools Precision roof Machining Thin Film Coatings Global
Mkt Size Complete $100 Bn Solutions Precision Components for customer Power Steering / Heat Sinks, Brake parts.
163 Company own assessment based on industry sources” Process Equipments: Doubling the Play Field
635 Customers Compound Metal Processing Conveying Competencies 3000 Installations Solutions Leadership Position Cooling Solutions Specific Technology in Auxillaries Plastic Recycling Customer Relationship 32 Solutions Countries
108 Products
164 Precision Metals and Modules: Increasing Playfield
• Content up Combining • Cross selling Competencies • New products Delivering • New geographies Solutions • New opportunities
165 Roadmap summary – Precision Metals and Modules
01 02 03 04 Business growth Integration of Adjacent Diversification in current new technology expansion into new product lines + content within + + segments & new Contribution to existing product markets segment = $ 36 bn
• Market Growth • Complex fabrications • Set up of press tooling • Global play in skin, forecast chassis and structural • New Refrigerant • Targeted acquisition parts • Booked Orders to complement • Forward integration in existing portfolios • Expansion of cabs • New projects won Body Modules business outside India /systems and • Value addition / • Anticipated new machining Forward and / or • New products through projects backward integration interplay of divisional • Most CAPEX on new at behest of customer competencies Technologies already done in last 5 year • Use Current Core cycle. Competencies and customer access to expand in Non-Auto Segment. 166 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Group Services
168 Group Services Back bone of Best Practices.
Global Strategic Procurement Creating scale and efficiencies
Travel Support : Safety, Travel Advisories and Bookings, Visa Insurance, FOREX
Infrastructure Support Safety and Speed of Construction
M&A, Audit, Legal, Financial Planning, Corporate Governance
169 Make with Motherson.
Industrial Park Motherson Auto Solutions Limited
• Partnership with Sojitz Corporation, Japan • Total size: 300 acres • Ready to Move-In: 40,000 sq ft. • Permits and Approvals – All done ! • Engineered by International Experts
Manpower Security Utilities
170 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com MothersonSumi INfotech & MI–XLab Designs (MIND) (Embedded and Electronics) (Information Technology)
Proud to be part of Motherson.
Samvardhana Motherson ROBIS Health Solution (SMHS) (Hardware Automation) (Pharmaceuticals & Healthcare) Technology & Industrial Solutions Investor Meet 2020 Main Focus Areas • Evolution from Project to Product based Orientation for Speed & Agility to Market Product Based Global Orientation Expansion • New Entities & Global Alliances for Geographic Expansion
• Integrated Competencies & Verticalized Focus for Strengthening Identity & Growth Potential
Integrated, Future • Contributors of Future Growth Verticalized Growth GTM Areas
173 Technology & Industrial Solutions– Introduction.
Technology & Industrial Solutions Verticals Automotive Manufacturing Pharmaceuticals / Healthcare Logistics Developing Solutions for Unlocking Cutting-edge Innovation, Solving Complex Challenges, Driving Sustainable Business Growth Portfolio MothersonSumi INfotech Samvardhana Motherson Embedded & Electronics Hardware & Designs (MIND) Health Solution (SMHS) Division (MI–XLab) Automation (ROBIS) ADM Services (MIND) Infrastructure Services (MIND) Expertise in developing agile business Focuses on digitalization, fine tuning applications for global scale operations infrastructures and IT operations
DEX (MIND) Global Business Services (MIND) Less than 1 % 2000 + 17 Integrated design and manufacturing group Global Center of Competencies for client of Group Revenues Employees Offices providing Full System Solutions to customers operations with Process Excellence & RPA
Industry 4.0 (MIND) Cloud (MIND) Footprint End-to-end Smart Manufacturing enablement Cloud Journey Enablement from Strategy to • India (6 Cities) expertise powered by inhouse MES ‘iDACS’ Migration to Developing Cloud First Solutions • USA Plant Automation (ROBIS) • Germany Robotic Automation and Innovative Solution • Japan for end-to-end Plant Automation • Singapore • UK Embedded & Electronics (MI–Xlab) SMHS • Middle East Hardware solutions for various verticals. Customer centric product & services focusing Telematics solutions for Automotive on compliances, patient & drug safety
Global Alliances Phase 1 Phase 2 Expansion 1. Spain 1. France and Italy Planned 2. APAC (Via Singapore Entity) 2. Africa Thailand, Malaysia & Indonesia 3. Australia & New Zealand
174 Pillars of our Future Growth – Key Leadership.
With right blend of Seasoned Technology Leaders complemented by Market Facing Leadership who have extensive experience of nurturing business in Global Markets, we are committed towards our Vision of becoming a Globally Preferred Solutions Provider. Market Development Leads
Arun Ralf Rees Yash Bhatnagar Krishanu Singh Sunil Sharma Vimal Manchanda Amit Upadhyay Mohanchandra Head, Europe Head, Japan & Far Head, Strategy Head, Global Head, Healthcare Head, Embedded & Head, Americas & UK East Office Alliances Vertical (SMHS) Electronics (MI-XLAB) Mr. Rajesh Thakur CEO
Technology Practice Leads
Cheruvu Tarun Prakash Vinod Mohit Gupta Gaurav Mathur Anurag Agarwal Pradeep Kumar Krishna Gupta Thiyagarajan Pahlawat Head, Head, Infrastructure Head, ADM Head, Hardware Mr. Rajesh Srivastava Head, Industry 4.0 Head, Cloud Head, DEX Head, GBS, Cybersecurity Services Services Automation (ROBIS) CFO India & Middle East
175 Vertical Evolution.
Product Orientation
Develop & Support SWS Wiring Harness Production Control Systems Globally Products curated across Industries IoT Team Formed to and Segments Core Services: Infra., ERP, Realize “Industry 4.0 ePulse Other Products in Business Applications Journey” iDACS Won 'Network Monitoring Project' for HRIS 1 Rollr Pipeline Common Wealth Games 2010 2000 + Awarded IRCTC 500 + Consulting project Movement Towards Setting Up Niche Center of Competencies WorkForce Workforce 2000 2010 2015 2016 2017 2018 2019 2020
Managed Services Model 850+ MIND Workforce Embedded & CMMI Level 5 CLOUD: Healthcare: Established Telematics: Certification CoC SMHS Mi-Xlab CMMi Level 5 Certification Hardware Automation: Project and Service Introduced ROBIS Based Orientation Analytics CoC Orientation Towards 2019: First Implementation of Product Based Offerings iDACS: Full Suite MES Product
176 MothersonSumi INfotech & Designs.
ISO Certified 9001, 27001, 250+ Growth Focus: Deepen Motherson Coverage, Expand in New CMMI Level 5 20000 Customers Markets
270+ Group Locations Digital Business Productivity Applications
5000+ Servers R Driving Efficiency Gains Digital Focus 600+ Applications Digital Digital Supporting Evolving Insights Operations Big Data & R Productized Approach Industry 4.0 Business Models Digital Transformation Consulting 25+ ERPs Managed Analytics Systems
30,000+ IT Users Cloud Cybersecurity
Standard Services Portfolio - Horizontal Expertise 200,000+ Support Tickets/Year IT Infrastructure | ERP & PLM | ADM & Product Engineering | Global Business Services
177177 ROBIS.
Hardware Automation & Robotics
Vertical Overview
Superior Products & Competencies Developed for Driving Manufacturing Excellence through Hardware Automation & Robotics
Go-to-Market Capabilities
Offerings Scope • Automated Assembly & Testing • Concept • Plastic Joining • Feasibility Study • Material Handling & Conveying • System Design • Quality & Traceability Aids • System Build • Robotics & Automation • System Integration • Machine Overhaul & Upgrades • Installation & Support
Future Growth Drivers
• Integrated Industry 4.0 Positioning • Focus on more Cutting-Edge Areas along with iDACS & Factory Including AR / VR Analytics • Formulation of Competitive Product • Inclusion of External Market Roadmaps for Key Offerings related Business Development Planning in to Digital & Automation Scope
178 ROBIS.
Product Highlight Key Product Portfolio spans across User Guidance, Error Proofing, Material Movement, Automation, Inspection Systems & Machines / Overhaul / Upgrades
Material Handling Augmented Reality End of Line(EOL) Systems - AGV, ASRS for Error Proofing Inspection Systems
Special Purpose Pick 2 Robotics & Automation Machines(SPMs) Light With AR
179 Maximizing Value through Comprehensive Digital Coverage.
Verticals Automotive Manufacturing Pharmaceuticals / Healthcare (SMHS) Logistics Business Productivity, Control & Insights Cyber Cloud Security Governance Collaboration & Executive Planning & (MIND) (MIND) & Control Digital Processes Decisions Hosting, Partnerships
Global Business Services(GBS) & RPA Protection Antivirus, Digital & Engineering Services(DEX) Patch, Malware Industry 4.0 – Smart Operations
Injection Molding Paintline Assembly Inventory Spend
Operations Analytics Monitoring (MIND) CERT, SIEM, Threat Intel
Digital Manufacturing (iDACS - MIND) Asset Production Track & Supply Chain Work Order Quality Pick 2 Warehouse Monitoring Control Trace Systems like JIT/JIS Management Control Light Control Governance Hardware Security Policies, Automation & SMA Electronics (ROBIS & Material Handling Augmented End of Pick 2 Mi- Xlab) Robot Machine System AGV, ASRS Reality Line(EOL) Light With AR 180180 Future Growth Drivers – Industry 4.0.
Market Opportunity Global Spending on Industry 4.0 set to Rise from $119 BN in 2020 to $310 BN in 2023 @27.04% CAGR: Forbes Dec18
Market Needs Service Offerings
Connected Machines & Factory Plant Automation ROBIS iDACS FAS (Factory Analytics System)
Analytics across Sales, Spend, Factory, HR and Audit Multi Cloud Capability backed by Next Generation Security Protocol Expertise
Cloud Managed Services
Experience & Scope at External Market - Growth Drivers Key Customers
• Industry presence across Manufacturing, Automotive, Pharma & • Motherson • Yanfeng Healthcare • Maruti Suzuki • JBM • Automating the Material Handling System using ROBIS Products • Rane • Supreme iDACS Future focused Collaborative • Smart Manufacturing using iDACS • TATA AUTOCOMP • Visteon Implementation Industry 4.0 approach for • Supporting Industry Solutions on Hybrid Cloud • Brakes India Ltd. • Magna – Several Light house Digital, • Integrated Ecosystem Management • Sun Pharma • Valeo Plants Covered Projects Automation & • Century Ply • Cosma Analytics • HUL
Sources: 181 • Industry 4.0 : Forbes December 2018 – “Roundup Of Internet Of Things Forecasts And Market Estimates” Future Growth Drivers – Global Business Services (GBS).
Market Opportunity Total opportunity size estimated to grow at high single digits*
Market Needs Service Offerings
RPA(Remote Process Automation) Sales & O/B Logistics RPA Consulting Managed Services RPA as a service Solutions for Business
Finance & Accounting Sourcing & Procurement GBS Consulting Integration Design Automation
Experience & Scope at External Market - Growth Drivers Key Customers
• Economy of Scale • Motherson • Business Risk Mitigation • Max HealthCare • Cost Advantage Business Std. Operating Digital • Utilization Improvement Process Procedures as Transformation • Superior Competency Standardization plug & play for and Process - Finance, Greenfield Re-engineering • Work from Home & Shifts Flexibility Purchase, Setups for Indirect Sales Back Cost Office etc. Optimization
Sources: 182 • Internal estimates based on market intelligence Future Growth Drivers – Digital & Engineering Services (DEX).
Market Opportunity Digital Engineering Spend to Grow from $1358 BN (2019) to $2155 BN (2025) @19% CAGR: Zinnov Dec 2019 Report2
Market Needs Service Offerings
Product Design/ Development Product Testing Design Validation and LVM services IIOT,IOT Solution
Low Volume Product Cost Management(PCM) Digital Engineering Manufacturing(LVM)
Experience & Scope at External Market - Growth Drivers Key Customers
• Reorganizing the Business to Go- to- Market as an Integrated • Motherson Design and Manufacturing Group providing FULL SYSTEM • Honda Cars SOLUTIONS to Customers • Daimler(Mercedes Benz) • Strong Digital and Design partners • Bharat Benz Modelling, CAD Manufacturing Supplier • GEO Expansion to North America, Europe & ROW • Suzuki & CAE, Engineering Quality Audit Tolerance Services Support • Vertical Expansion to Automotive, Industrial Manufacturing, • Ford Analysis & Medical Devices & Aerospace • John Deere’s Prototyping • HUL • Iveco
Sources: 183 • Digital & Engineering Services : Zinnov Zones –”ER&D Services December 2019” Future Growth Drivers – Cloud.
Market Opportunity Global Cloud Spending on IT Growing @16.5% (CAGR), Expected To Touch $345 BN by 2022: Nasscom, April 2019
Market Needs Service Offerings
Cloud Migration Services Cloud Security Next Generation Multi Cloud Managed Services (Public as well as Hybrid)
IoT, AI/ML & Big data Value Added Services A Rare IT Player with strong Horizontal and Vertical strength
Experience & Scope at External Market - Growth Drivers Key Customers
• Strong Partner Network and Support • Motherson • AWS • All India Radio • Google Cloud • CREDAI • Azure Enterprise Cloud first Core Systems • CSIR • Vmware Cloud Journey Applications like SAP on • Delhi University Cloud • Oracle Cloud • STC • AWS Premiere Tier partner by end of 2020 • THDC India Ltd. • Well defined competency road map • Woodland & 70+ Customers • 90+ Cloud Certifications, 60 + certified Professionals
Sources: 184 • Cloud – NASSCOM – April 2019 – “Cloud Next wave of growth in India-2019” SMHS.
Healthcare Product Highlight An Integrated Architecture, yet Modular. Modularization offers Flexi-Adoption Vertical Overview ePulse Approach towards Digital Transformation. Solutions around Compliances, Patient & Drug Safety and Operational Assuring Digital Compliance Excellence ERES CFR Part 11 GMP Data Integrity Go-to-Market Capabilities Pre-ePulse Shop floor logs, records, templates are filled manually.
Products Services Current Technologies 1 Digital Logbook eLog Shop floor logs, templates are converted to a • ePulse • Working in various • Open source digital platform/ tablets Healthcare sub • Augmented Reality • Indoor Navigation verticals (Health Tech, • Wearable & IoT Med Tech, Pharma 2 IoT Component Tech, Wellness) eOS Equipment agnostic IoT component to monitor ePulse machine utilization. Digital Transformer 3 Future Growth Drivers Intelligent Manufacturing Monitoring System iMMS Equipment integration to provide real-time data Journey Digital acquisition and reporting • Connected Wellness • IoT / Wearables • Aided Diagnostics using AR/VR • Digitalization 4 ePulse Data Analytics • Artificial Intelligence Data Converting data to value, providing manufacturing Intelligence pulse, on a click of a button
185 Mi-Xlab.
Embedded & Electronics Product Highlight An IoT Platform providing diverse application use cases across Vehicle Telematics Vertical Overview Rollr & Customer Operations Multitudes of Products Developed in Vehicle Telematics, Electronics & Services 150 Mn Km Vehicle Go-to-Market Capabilities Data Logged
Vehicle Telematics Electronics Services 250+ Vehicle
• Over 10+ grades of • Laser Seeker • Working with several Models Tested Hardware Group Companies • Industrial IOT (MIND/MI,SAMRX) • IoT Cloud developed • IRVM • OEM Services for • Multiple App developed MSIL/M&M 20+ Hardware Developed Future Growth Drivers
OEM Business Cloud Data Services • 2-Wheeler Segment • New Business ideas around Cloud • Tractor Segment driven Telematics Solutions 6x Vehicle Managed: • Off-Road Segment • Innovation driven Solutions for OEM From 25k to 150k • Focus on International Markets & Insurance Partners Ecosystem in Expansion Automotive.
186 Vertical - Key Customers.
Key Customers (External)
Airtel Hi-Lex Rajiv Gandhi Cancer Institute Asahi India Glass Ltd. ILVS of Research Centre ANTOLIN iTutor Revegy Ashok Leyland ISUZU Salido Brakes India Limited Intradiem SUN Pharma BOSCH JCB Sumitomo Class Link JBM Suzuki CREDAI Jubilant LifeSciences Soft Bank Century Ply Larsen & Toubro Sigma Cooper-Standard Auto Max Healthcare SML Isuzu Cosma Maruti Suzuki Shuttle CSIR Moriroku Sonalika CloudCodes Mahindra Rise Supreme CAT Magna Sir Ganga Ram Hospital Digital Alchemy Mitsubishi Motors STC Daimler(Mercedes Benz) Maruti Suzuki TATA DuPont McCalla Raymer Leibert Tirupati Escorts Neptune Sai LLP TATA AUTOCOMP Espirit Toyota NewTek THDC India Ltd. Estimating Return Futuris Nissan TVS Rubber FIAT NTPC Turbo Energy PVT. LTD. Potential of 1%-1.5%* Goodyear Tire and Rubber Company Nidec Visteon Gulf Stream PayAsia Valeo for Vertical Honda Rane Group Woodland HUL Yanfeng Hero YKK Manufacturing company
187 We have Global Exposure & Experience to Drive Growth.
Digital Focus at Motherson
Current Scale of Operations • 270+ Group Locations Significant IT • 5000+ Servers Opportunities from New Companies • 600+ Applications as Group Targets • 25+ ERPs Managed $36 BN over next 5 • 135,000+ Employees Years • 200K+ Support Tickets/Year Experience at • 99.996% Uptime Motherson has made us Price Competitive & ROI Focused Increasing Business Share in Motherson through: • Increased Integration within Next 5 Yr. Target Motherson Group is to Increase IT • Higher Value Proposition Wallet Share from through Integrated Industry 4.0 35% to 60% Capabilities, GBS, DEX & Cloud
Motherson’s DNA & Experience will Bolster our External Market Growth..
188 Vertical - Top Level Financial Performance.
Revenue In USD MN Business Mix
% 22.2 27% 53%
INR CAGR 67.38
73% 28.68 47%
FY15 FY20 FY20 FY25 Mo therson Outside
189 • INR figures have been converted to USD using average exchange rates for the year” Digitally Empowering Motherson’s Growth.
Global Partnerships Microsoft, AWS, SAP, VMWare, Google, TIBCO etc. A Strong Digital Enablement will Integrated Establish a Smart Positioning Sustainable Digital & Engineering Services Journey towards Industry 4.0 Cloud $36 BN Global Business Services
Foundation Secure Infrastructure Verticalized Focus IT Consolidation Automotive, Manufacturing, Global Contracts Pharma & Healthcare ,BFSI etc. Geographic Expansion
Phase 1 Phase 2 1. Spain 1. France and Italy 2. APAC (Thailand, 2. Africa Malaysia & Indonesia) 3. Australia & New Zealand
Motherson $10 BN Enablers Group Governance & Control Systems Collaboration & Productivity *Basis overall Global IT Spend Estimation for Typical Motherson Scale Enterprise 190 Solutions Roadmap summary – Technology & Industrial Solutions.
02 04 01 Integration of 03 Diversification Contribution Business growth new technology Adjacent into new To in current content within + + expansion + segments & new = product lines existing product $36 BN markets segment
• Became a Strong Enterprise • Centers of Competencies • Translating Projects/Solutions • Setting up New Business Technology Vertical over past established in cutting edge Experience in Developing Entities & Alliances in a 2 Decades Tech. Areas – Industry 4.0, Globally Competitive Phased Manner Cloud, Digital & Engineering Products ROBIS, iDACS, • Business IT Portfolio will Services and Global Business HRIS1 etc. • Healthcare business ‘SMHS’ focus on increasing Content Services(GBS) leveraging current IT Per Customer with new • Integrating our Portfolio for capabilities complemented applications • Working with Global Manufacturing vertical and with Advanced Tech. like AR / Advisory for Strengthening position as an end-to-end VR will position us for Growth • Digital Value & Coverage Competencies and Acquire Industry 4.0 Player Expansion at Motherson Larger World Market Share • Embedded & Electronics • iDACS suite will be pushed business ‘Mi-Xlab’ will Extend • MIND’s continued Strategic • Working on Global Alliances for other verticals like our Solution Capabilities within Role in Integrating New to Integrate new Platforms / Process Manufacturing, Oil & the Overall Ecosystem Companies Capabilities, Market Gas etc. in stages Outreach for Current Offerings • Foundation established with Customers Acquired for Healthcare ‘SMHS’ & Embedded & Electronics ‘Mi-Xlab’ offerings
191 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Will be preparehttps://www.shutterstock.com/de/image-photo/engineer- safety-vest-standing-next-airplane-1161853876d by MARCOM for all divisions
Logistics Solutions Investor Meet 2020 Main focus areas
• External logistics • Internal logistics • Skilling • New opportunities
194 The division’s operations today
90 employees
11 facilities
Our specialised companies JV Partners Samvardhana Motherson Hamakyorex Engineered Logistics Limited HMK Samvardhana Motherson Global Carriers Limited More in pipeline Swarn Lata Motherson Center of Excellence
195 Experienced Leadership
Arjun Kochhar Nitin Sharma Gaurav Pahwa Ishizu Karsumsa COO Business Head CFO CMO Logistic Vertical Logistic Vertical Logistic Vertical Logistic Vertical Division Division – SAMRX Division – SAMRX Division – SAMRX
3rd Generation SCM professional with 18 years experience, an MBA from Kellogg School of Management and Advanced Supply Chains Certification from IIM-A. Niranjan Samal Alok Srivastava Operations CFO Logistic Vertical Logistic Vertical Division – SMGCL Division – SMGCL 196 External Logistics SAMRX
197 About SAMRX
“A solution built around safety to deliver a better car carriage solution to OEM customers and provide the commercial vehicle drivers a fair deal.”
SAMRX is a JV between Hamakyorex Co Ltd & Motherson Group
198 About Hamakyorex
• Japanese logistics player established in 1971 • Listed on the Tokyo Stock Exchange • Diversified services across FMCG, medical equipment, ecommerce and car carriage • +100 Distribution Centers & +5,000 trucks
Car Carriage Business: • 30% Suzuki market share • 47 Years of experience • Capacity of 19,000 cars per month • Best in class performance - +600 Km per day • Several Accident Free and Quality awards by Suzuki
199 Car Carriage Market Landscape in India
Highly fragmented market Low technology enablement
• Lack of organized players (76% of the • Lack of fully organized systems for market is driven by unorganized players) monitoring operating efficiencies of the fleet
• Many fleet providers with small fleets (Avg: Market size • Poor traceability and lack of online systems 100 carriers) 18,000 carriers $ 0.8 Bn* Low penetration in other modes Stability of drivers
• 95% of the car carriage business is via • Drivers are the key assets in the business roadways • Due to current employment practices, • Govt push for Rail & Waterways movement retention of drivers is a big challenge for is a greenfield opportunity industry players
200 * Internal estimates Our Business Model
Transportation using Owned fleet OEM’s Auto Plants Dealerships
3M+T
• Betterment of Men • Best in class Machines • Standardization of Method • Addition of cutting-edge Technology
201 SAMRX today Our fleet
• Started with MSIL and are in process of onboarding other OEMs - 20 Carriers on road, 30 additional to be added by Dec 2020
• Green Company - Higher Capacity Fleet thereby reduced Carbon Footprint
• 100% Advanced Telematics & IOT enabled Fleet
202 SAMRX today Driver Strategy
• Unlike industry practice, we have all our drivers on fixed salaries along with all statutory compliances.
• Company offers Industry first and best in class for education/health/accident/life insurance schemes.
203 SAMRX today Technology Advantage
• Control tower with real time visibility of fleet and cost capture • Driver App and scoring based on performance, efficiency, training and testing. • IOT Sensors for real time monitoring of: - Fuel and tyres - Dashcam - Fatigue Monitoring - Route deviations - Cargo hold access
204 SAMRX today Quality & safety focus
• Full time Chief Safety Office
• Regular GEMBA visits to ensure quality and safety standards
• Japanese Kaizen Points - Hub Nut Indicator - Engine start button - Wheel Stopper - Laser Sensor - Counterbalance Valve & Flow divide - Double Acting Cylinder
205 Strategy going forward
Organic Inorganic
• Continue building technology driven • Expansion of fleet and business by enablers to improve fleet efficiencies acquisitions (PV, 2W, OHV)
• Consistently reduce carbon footprint by • Entry into Auto Rakes business investing in superior fleet with increased load capacity. • Entry into Yard Management
• Focus on driver training and welfare
• Ramp-up business with current customers and gain entry into new customers
206 Internal Logistics SMGCL
207 About SMGCL
Our Vision: To be an In-house single window 4PL Solutions Provider empowering Motherson’s supply chain.
208 SMGCL today Service Offering
• Transport services: JIT distribution, Milk Run, Loop Movements, Full Truck Load, Part Truck load, Over Dimension and Project Cargo. • Air & Sea Clearing and Freight forwarding services. • Virtually Managed Inventory & Warehousing consolidation projects • Packaging solutions • Logistics manpower consulting
209 SMGCL today Providing 3PL service to 75+ Motherson plants in India India North Manesar Germany Bruchkoebel Bawal Japan Nagoya Noida Greater Noida Korea Incheon EXIM USA Houston India Pune China Shanghai
India West Sanand India South Chennai Bangalore
Australia ? Active Upcoming
210 Business Model
Freight Savings • Through centralized consolidated freight purchasing • Vendor rightsizing
Technology empowerment Opportunity • Deployment of Oracle Transport Management System for visibility 10%Auto freight and analytics Dealerships • Standardized telematics for vendor performance review, geofence savings based innovation and automated billing
Logistics efficiency consulting • 4PL efficiency & maximization strategies • Process Mapping, Synergy Quantification & Re Engineering • Material management equipment benchmarking & best practices
211 Case Study
• Case Study 1: Freight reduction through consolidated Savings Per Trip purchasing. Data driven performance monitoring and Avg. 10% rightsizing of vendors from a total of 17 service providers to 3.
• Case Study 2: SMGCL clubbed and negotiated 2 LCL Savings thought EXIM Freight (Less than container load) Export shipments of Consolidation different Motherson entities to achieve significant Avg. >30% savings.
• Case Study 3: Replacing physical bottle sealing process with electronic rear door sensor at a Manesar Annual Savings Unit will result in annual savings >7,00,000/- > INR 0.7 Mn
212 Strategy going forward
What? Why?
• Consolidation of EXIM business of • An approx. 10% savings on Group 270+ Motherson facilities spend and aligned with our philosophy of vertical integration to add value
• Conversion of all CIF and similar • Improved supply chain visibility, credit purchasing where logistics costs are access and insurance settlement terms. baked in at seller end.
• Inward Logistics To route all incoming • Better inventory visibility and cost raw material logistics purchasing. control.
213 Skilling The Swarn Lata Motherson Center
214 About the Motherson Center
Motherson Group as part of Skill India plans to create a holistic Centre of Excellence complete with India’s first driving track for large vehicles.
Our Goal is threefold • Create sustainable job opportunities • Skill upgradation in a rapidly evolving ecosystem • Creating a trained manpower pipeline for Auto Ancillary industry
Proposed Programs • Driving school and associated RTO operations • Direct employability based Industrial Training
215 • Innovation & Entrepreneurship Lab Projects under Consideration
216 Under Exploration
$9b $14b $.8b $26b
Inland Trailer Logistics Tech Cold Chain Container Manufacturing monetization Depots
217 * Internal estimates Conclusion
218 Conclusion / Roadmap 2025 Logistics Solutions
01 02 03 04 Business growth Integration of Adjacent Diversification in current new technology expansion into new Contribution to product lines + content within + + segments & new = existing product markets $ 36 bn segment
• Scale SAMRX • Industry first data • SAMRX: Rail & • Logistics associated driven real time Waterways asset manufacturing. • Consolidate Group business intelligent spend in SMGCL through best in class • Skilling Center: • Monetize IT Logistics platforms Global partnerships. • Build skilled and IOT sensors. • Explore more B2B manpower pipeline specialized Logistics for Ventures and opportunities. industry.
219 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Aerospace Division Investor Meet 2020 Main focus areas
• Detailed parts
• Aerostructures
• Wiring harnesses
• Cabin parts
222 The division’s operations today
12 employees
1 facility 5 offices
Our specialised companies Partners
Operational approach through other divisions Not yet
223 Experienced leadership
Kunal Bajaj Xavier Dessemond Deepak Manchanda Brajesh Chhabra CEO, Aerospace Division VP, Supply Chain & AVP, Business AVP, Finance New Delhi, India Procurement Development New Delhi, India Paris, France New Delhi, India
20+ years of industry and consulting experience in India, US, Canada and Australia
Vikram Bansal Dominique Farkas TBC AVP, Operations External Advisor, External Advisor, New Delhi, India Aerospace Expert Aerospace Expert Paris, France USA
224 A success story
225 Our market entry.
• Recenty won a “Make In India“ high-grade mission critical
rubber part for Chandrayan-II launch vehicle motor
• Leveraged Group’s experience, cost leadership to submit a
winning value proposition
• Single vendor for flex seals on multi-launch vehicles
• Created additional opportunities for Motherson
226 A perspective on the market
227 Aviation industry was driving the global economy…
An Aircraft takes off or lands every Air traffic doubles every An Aircraft takes off or lands every Air traffic doubles every
PrePre--CovidCovid 0.7 seconds 15 years perspective (Above0.7 100 seater)seconds 15 years perspective (Above 100 seater)
4.1billion 56 million $3.1trillion 65 million Passengers4.1billion Tonnes56 of freightmillion Global65 GDPmillion annually $3.1Jobs supportedtrillion 2X Passengers Tonnes of freight Jobs supported Global GDP annually Global GDP
228 Source: https://www.icao.int/Meetings/FutureOfAviation/Pages/default.aspx Pre-Covid perspective
40K new aircrafts expected to be …creating a sizeable aerospace delivered by 2040… market in the long term
Number of aircrafts
Global Aerospace $5.2 Market Value Trillion by 2035 25,000 Growth
20-Year 39,210 New deliveries
Replacement 14,210 ~$11 10 Yr. Order Book Value 22,680 Trillion Airbus and Boeing
8,470 Stay
Beginning New 2019 2038 - 40 deliveries
229 Source: Airbus GMF 2019, Forbes, Bain and Co A&D Report And then Revenue Scenario 1: Rebound Passenger New normal reached by winter 2020 Covid hit Kilometer 100% of 2019 level us all. [RPK tn] Scenario 2: Delayed cure New normal reached by Summer 2021 12 90% of 2019 level 10 2019 level
8
6 Scenario 3: Recession New normal reached by Summer 2022 4 80% of 2019 level 2 CAGR after reaching the "New Normal" for the scenario 3: 3.6%
2018 2019 2020 2021 2022 2023 2024 2025
"New normal" defined here as the status of global travel demand once aviation RPKs stabilize following the COVID-19 crisis
230 Source: Roland Berger COVID-19 is expected to fundamentally change the industry by influencing key industry trends paving the way to a "New Normal"
à à à Consolidation Drive towards Automation within Aerospace sustainability
à à à Launch of next Globalisation of Race to capture generation aircraft footprint the aftermarket
231 Strong increase Decent increase Decent decrease Strong decrease Source: Roland Berger Valuations have seen a correction
Average multiples of global Multiples of MAJOR Aerostructures and Structural public aerostructure companies1 Component Manufacturers (median decline 12%)
2 FY 19 EV/EBITDA 17.6 EV/EBITDA Estimated FY 20 EV/EBITDA3 14.2 13
14 ~30 11.1 9.9
% 9.4 8.9 8.6 7.8 7.2 6.9 6 10 5.6 3.7
DUCOMMUN LATECOERE* 2020 2021 [E] FIGEAC AERO LISI AEROSPACE MAGELLAN AERO TRIUMPH GROUP* MTU AERO ENGINES
232 Source: 1) Bloomberg, 2) FY 19 EV & EBITDA as on Dec 31, 2019 3) FY 20 EV calculated as of 05/11/2020 (*EV calculated as of 08/06/2020), EBITDA estimates for Dec 31, 2020 from Bloomberg In a nut-shell: A potential up side created from a global crisis
• Severely impacted most industries Impact on the Industry going but Aerospace hit hardest forward
• Localisation of supply chains and stronger regional ecosystems • New aircraft deliveries are expected to shrink in the short term • Widespread consolidation expected • Opportunities for disruption and innovation
• OEMs and suppliers have been forced to work on various cost efficiency measures Tremendous opportunities for inorganic growth
233 Identification of focus areas
234 6 major commodities of aircrafts
Indirect Materials Aerostructures Systems Propulsion Cabin parts Procurement
10% 15% 18% 30% 13% 14%
~600 ~900 ~1000 ~1800 ~775 ~830 $Bn $Bn $Bn $Bn $Bn $Bn
10 year cumulative $Bn market size
% content % of aircraft ($)
235 Source: Company own assessment based on industry sources How we determined the strategic focus areas Motherson Strengths for Motherson • Over 270 manufacturing facilities
• Strong presence in key Aerospace ecosystems
• Manufacturing DNA with quality, cost and performance
• Strong turn around track record
• Head start in wiring harness and plastics
236 How we determined the strategic focus areas Profitability for Motherson • Margins vs. value addition and complexity in supply chain
% % % % %
237 How we determined the strategic focus areas Future Growth Opportunities for Motherson • Non-Aero companies entering the market
• Consolidation of supply chain
• Disruption through automation and new technologies
• Aerospace manufacturing moving to strategic low cost countries (China, India etc.)
238 Motherson focus areas
Indirect Materials Aerostructures Systems Propulsion Cabin parts Procurement
~600 ~900 ~1000 ~1800 ~775 ~830 $Bn $Bn $Bn $Bn $Bn $Bn
• Product Related • Detailed parts • Composite • Landing gear • Engines • Galleys Titanium Structural assbly. • Landing gear • Engine machine • Lavatories Services Aluminum • Metallic assbly. machine parts parts • Overhead bins • Tech. Documents Composites Fuselage • Flight control • Pylons & • Seats (pilot and • IT Services • Machine Tools • Standard parts Doors systems Nacelles business class • Fasteners Wings • Comm. • Fuel Systems & • Gains • Travel & Logistics • Electricals • Payload systems equipment Accessories • Entertainment • Building and Maint. assemblies • Wiring harnesses • Navigation systems • Chemical sealants systems • Paints and coatings 10 year cumulative Red = focus areas $Bn market size
239 We plan to build capability in a phased manner
Materials Aerostructures Systems Propulsion Cabin parts
Short Bed - Hard Metal Machined parts Phase 1 Short Bed - Soft Metal Machined parts (2020-2023) Small Metallic Assly. Composites Parts & Assbly.
Wire Harness
Long Bed Machining Galleys for Small Aircraft Phase 2 Additive layup/ 3D printed parts (2024-2025+) Complex Composites Partitions Assbly Cockpit Doors 240 We will leverage Motherson‘s existing capabilities and add new ones
MOTHERSON FOCUS ORGANIC INORGANIC
Brownfield Greenfield M&A Aircraft Commodities “Leveraging Capabilities’” “Creating Capabilities” “Acquiring Capabilities”
Materials ü ü Aerostructures ü Wiring Harness ü ü ü Cabin Parts ü ü
241 Our point of departure
242 Point of departure (1/3) Brownfield – Leveraging the Group‘s existing capabilities
MOTHERSON FACILITY OPPORTUNITY WHAT HAVE WE DONE § Plastic components for § AS9100D certification SMIIEL cabin interiors complete (Noida) § On-going discussions on customer qualification
§ Metallic machines parts for § AS9100D certification MINES aerostructures complete (Bangalore)
§ Rubber parts for various § Won several orders from MAE applications ISRO and Indian private (Chennai) space company
MSSL § Wiring harnesses § AS9100D certification in (Bangalore) progress MWSI § Supplied harnesses for (Portland) aerospace ground equipment
243 Point of departure (2/3) Greenfield – Setting up new facility with focus on Aerospace
• The upcoming ~36,600sqft. facility is co-located and will be globally connected with the Group’s 77 existing wiring harness facilities • The facility will be production ready by April 2021
244 Point of departure (3/3) M&A – Acquiring new capabilities
• Defined acquisition criteria based on geography, size, product, profitability, customer relationships, management team, etc. • Created a short-list of potential targets in Europe; similar activity being done for North America
• Actively engaging with US & European Primes on consolidation opportunities • Reviewing strategic assets in France, US, Germany and Canada
245 Conclusion / Roadmap 2025 Aerospace Division
01 02 03 04 Business growth Integration of Adjacent Diversification in current new technology expansion into new Contribution to product lines + content within + + segments & new = existing product markets $ 36 bn segment
• Aerospace industry is adapting to a new normal creating openings for new entrants
• Motherson’s global presence and existing capabiity position us well to support aerospace OEMs
• Industry is ripe for consolidation providing inorganic opportunities for growth
246 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com Health & Medical Division Investor Meet 2020 Main focus areas
• Design, development and sale of Health and Medical Technologies
• Highly resilient globally local supply chain for manufacture of wellness and medical devices
• Medical Quality Systems and Regulations
• Artificial Intelligence and industrial-grade technology platforms
249 The division’s operations today
21 employees
7 Offices
Our specialised companies
Motherson Medical Re-Time Pty Ltd
250 Experienced leadership
Varun Sood Head – Health and Medical Rahul Chitale Simon Belcher Sam Vial Nitin Goyal CTO Hardware CCO COO Motherson Medical Products Motherson Medical Motherson Medical Motherson Medical
251 The Healthcare Sector at a Glance
252 Key Healthcare Segments
Delivery 01. Clinics, Nursing Homes, Hospitals 02. Diagnostic Labs and Services 03. Pharmacies
Enablers 04. Medical Technology 05. Health Technology 06. Pharmaceuticals
253 Projected Global Healthcare Spend (USD billion)
10,059 Global 7,724 CAGR
4,175 2.7% 2014-2018 North America 3,509 5% 2019-2023 2,279 Western Europe 1,745
2,427 Asia & Australasia 1,766
437 Latin America 350
279 Middle East & Africa 196
239 2022 2017 Transition economies 177 Source: Deloitte Global Healthcare Outlook 2019 (The Economic Intelligence Unit)
254 Macro Trends and Healthcare’s Reality
Continuously increasing Spend on Healthcare
Growing Disease Burdens
Changing Demographics and Large Socio-Economic Divide
Changing Consumer Behaviours
Increasing Regulatory and Operational Complexity
255 The Future of Healthcare: Paradigm Shifts
1 2 3 From Doctor first From Care Facility From Care to Diagnose first to My Location to Health
Intelligent Precision Consumer Convenience Pre-emptive Diagnostics Medicine Based Centric Driven Driven
à Future models of healthcare have started emerging, though are at a nascent stage
256 Motherson’s strengths and capabilities are very well aligned to Health and Medical
DNA of Global Quality and Long term presence Cost Focus partnerships
Engineering Diversified Business and global and Technology manufacturi operational Talent Base ng expertise
257 Our current presence
258 We used our strengths to build a presence in Health and Medical
We quickly pivoted from automotive focus to MedTech in Australia through deep partnerships with Universities, Hospital Systems, Local Governments, and Companies
Re-Timer Clinical Face Shield Sleep Therapy Glasses Class1 Medical Device
• In market with revenues of ~ $ 0.5 mn • Launched in July 2020: ~ $ 0.5 mn of revenues • Available in USA, Europe, Australia, Korea, Japan
Thim Contract Manufacturing Services Sleep Training Ring To Medical Device OEM’s
• Launching in market in Q1 2021 • Supplying to GE Healthcare, Philips, others • Current size business ~USD 5 mn • Operate ISO 13485 certified facility
259 And leveraging them, we are continuing to build new products
3dBioPen MaXm Skate For cartilage regrowth in knee Fully integrated reconstruction rehabilitation device
• Captures and reports exercise • Used to print live stem cells that promote data, results are immediately regrowth of cartilage accessible by physiotherapist
Bladder Cancer Sensor And more products “Lab-on-Chip” for detection of under development urothelial cancers
• Disrupts current test: < 2 hours, using urine sample vs invasive biopsy, results in 2+ days
260 Our Vision 2025
261 We evaluated and assessed Healthcare Segments...
Motherson Strengths
Clinics, Hospitals
Diagnostic Services
Strategic Considerations Pharmacies
Medical Technology
Health Technology Key Business Considerations Pharmaceuticals
262 … And going forward will focus on 2 segments = 1 Trillion Market in 2024*
Core to Healthcare Delivery – Now and in the Future
Clinics, Hospitals Will morph into each other – and into healthcare delivery Diagnostic Services Highly synergistic and inherently global businesses Pharmacies
Largest source of usable health data Medical Technology $ 770 bn in 2025*
Health Technology $ 310 bn in 2025* We have existing presence in these Pharmaceuticals Strongly aligned to our Capabilities and Strengths
*Own market assessments 263 Understanding Classes of Medical Technology
Class 1 Class 2 Class 3 Low risk to human life Intermediate Risk to High Risk to Human Life, Human Life Very important to health or sustaining it
Examples: Bandages, Handheld Surgical Examples: CT scanners, infusion pumps for Examples: Pacemakers, Deep-brain Instruments, Beds, Nonelectric Wheelchairs intravenous medications, Lab Analyzers, stimulators, Stents, Orthopedic Implants Electric Wheelchairs
Regulatory and Quality Requirements à
Risks (For Product/ Brand Companies) à
Margins and Value à
A Medical Device is used to diagnose, prevent, or treat a medical disease or condition without having any chemical action on any part of the body 264 Our aspiration
• Positively Touch 1+ billion lives by 2025
• Create Global presence of Substantial Scale & Size
265 Key Segments in Medical Technology – Projected 2025 Market Sizes
Medical Technology Segments $ 770 Billion*
110.0
20.3 Contract $100 Bn* Manufacturing 10.5 88.0 51.0 55.0 Gross Margins Gross 36.0 350.0
50.0
Fitment:: Our Capabilities (Current) and Risks
Durable Medical Equipment Imaging Equipment Dental Equipment Patient Monitors Consumer Devices Invitro Diagnostic Equipment Medical Consumables Surgical Equipment Implants
266 *Own market assessments We will build our Business on 3 Fronts
Continue to build Build a large Grow share of portfolio of own global medical MedTech contract products devices platform manufacturing
Focus on Point of Care Health and Spanning MedTech Manufacturing, Diversify existing contract Medical Technologies and Products & Brands manufacturing business
267 We are taking a measured and programmatic approach to build the business
Our Risks Measured and Strengths Opportunity Programmatic Business and Size Current and Regulatory Approach Future
And COVID-19 provides an opportunity to rapidly build the business
268 Conclusion / Roadmap 2025 Health and Medical
01 02 03 04 Business growth Integration of Adjacent Diversification in current new technology expansion into new Contribution to product lines + content within + + segments & new = existing product markets $ 36 bn segment
• In India, North America, Europe, and Asia
• Launch Point of Care health and medical technologies
• Inorganically build large global medical technology platform
• Grow share of Medical Technology Contract Manufacturing Business for existing operations
269 © Motherson Group All rights reserved by Motherson and/or its affiliated companies. Any commercial use hereof, especially any transfer and/or copying hereof, is prohibited without the prior written consent of Motherson and/or its affiliated companies. In case of transfer of information containing know-how for which copyright or any other intellectual property right protection may be afforded, Motherson and/or its affiliated companies reserve all rights to any such grant of copyright protection and/or grant of intellectual property right protection. www.motherson.com