mahindra forgings limited - aceanalyser
TRANSCRIPT
Mahindra Forgings Limited
February 2010
2
Agenda
• Group Overview
• Systech Evolution
• Mahindra Forgings Limited – An Overview
• Outlook and Strategy
• Management Profile
• Financial Summary
3
M&M Group OverviewM&M Group Overview Strong Historical Growth in Consolidated RevenueStrong Historical Growth in Consolidated Revenue
Revenue Break up by Segments (FY09) *Revenue Break up by Segments (FY09) * Recent Awards & RecognitionRecent Awards & Recognition
• USD 6.3 bn (market cap)* Indian conglomerate
• Among the top tractor manufacturers in the world (by capacity) and the market leader in multi utility vehicles in India
• Over 50,000 people & several facilities in India & overseas
• High standards of corporate governance
• Vice-Chairman & Managing Director – Mr. Anand Mahindra
• Forbes’ top 200 list of most reputable Global companies, 2009 (among the top 15 Indian companies in that list)
• Recipient of ICSI National Award for Excellence in corporate governance for the year 2008
• Assigned the Governance and Value Creation (GVC) Level - 1 by CRISIL for Governance and Value Creation
• Reputation Institute (US) ranked Mahindra Group among the top 10 Indian companies in its Global 200: The World's Best Corporate Reputations list
* Net External Revenue; Others includes Trading, Hospitality, Infrastructure Development etc
Systech – A Significant Part of M&M Group
Group Overview
Farm Equipment
25.1%
IT Services17.4%
Financial Services
5.2%
Autmotive31.1%
Others7.7%
Systech13.5%
CVs, PVs, UVs
TractorsTech Mahindra & Mahindra Satyam
M&M Financial Services
Auto Components
Source – M&M Annual reports, website and Stock Exchange Filing
126
179
242269
244
0
50
100
150
200
250
300
FY 06 FY 07 FY 08 FY 09 9M FY 10
Rs.
Bn
CAGR (FY06 - FY 09): 28.6%
* Source – Bloomberg (as on February 4, 2010),
4
Systech Formed in 2004 with the objective of becoming a Global Auto-Component Player
Systech Evolution
• Around 2004-2005, European and US auto component manufacturers were going through tough times –
– 35+ auto part makers filed for bankruptcy protection; S&P downgraded 25 US-based auto component suppliers
• Auto components was increasingly being looked at as a global business out of low-cost countries
– Rapid increase in exports from India and China with India being recognized for expertise in engine components
• Around 2004-2005, European and US auto component manufacturers were going through tough times –
– 35+ auto part makers filed for bankruptcy protection; S&P downgraded 25 US-based auto component suppliers
• Auto components was increasingly being looked at as a global business out of low-cost countries
– Rapid increase in exports from India and China with India being recognized for expertise in engine components
Mahindra Forgings
Key Considerations
Casting
Gears MES
• Technology
• Market Access
• Quality of Management
• Location: Europe
• Complementary product portfolio
• No auction
• Optimal size: 75-100 mn Euros
M&A to fill in strategic gaps
Acquisitions
Background
5
Mission Statement – To Become Global “Art to Part” Player
Systech Evolution
To create IndiaTo create India’’s most s most Valuable, Innovative, Valuable, Innovative, ““Art to Art to PartPart”” auto component entity auto component entity that partners with its global that partners with its global customers to meet & surpass customers to meet & surpass
their business needstheir business needs
6
Currently Forgings is the Largest Part of Systech
Systech Evolution
Products (% of Revenue – FY09)Products (% of Revenue – FY09) Key CustomersKey Customers
Key BusinessesKey Businesses
ForgingsForgings
Mahindra Forgings (Listed)Mahindra Forgings (Listed)
One of the leading forgings company in the world*
One of the leading forgings company in the world*
CastingsCastings
Mahindra Hinoday(IVF – PE) Mahindra Hinoday(IVF – PE)
HPDC, Induction Melting, Auto Pour, Computerized Sand Mixing
HPDC, Induction Melting, Auto Pour, Computerized Sand Mixing
GearsGears
Mahindra Gears and Transmission Pvt. Ltd.Metalcastello S.r.l. (I-Ven – PE)
Mahindra Gears and Transmission Pvt. Ltd.Metalcastello S.r.l. (I-Ven – PE)
150,000 gears every month150,000 gears every month
Stampings & SteelStampings & Steel
MUSCO (Listed)MUSCO (Listed)
Alloy steel and critical stamping parts required for auto & non-auto
Alloy steel and critical stamping parts required for auto & non-auto
Engineering Services
Engineering Services
Mahindra Engineering Design and Development CoEngines EngineeringPlexion Technologies
Mahindra Engineering Design and Development CoEngines EngineeringPlexion Technologies
Automotive (inc. motorcycles), aerospace & engineering
Automotive (inc. motorcycles), aerospace & engineering
CompositesComposites
Mahindra Composites (Listed)Mahindra Composites (Listed)
Polymer compositesPolymer compositesBrief Description Brief Description
* By capacity
Combined Systech offers single window offering to clients, superior cost efficiencies and high bargaining power
Plant LocationsPlant Locations
IndiaIndia GermanyGermany
UKUK ItalyItaly
* Others includes Contract Sourcing and Mahindra CompositesSource – Sales from annual reports of all companies (without inter-company eliminations); annualized where data is not for 12 months
DAIMLER
Steel and Stamping24.1%
Casting6.0%
Gears12.3%
Forgings50.9%
Others1.3%
Engg. Services
5.4%
7
Key Account Management Structure to enable cross selling
Systech Evolution
PresidentMr. Hemant Luthra
PresidentMr. Hemant Luthra
ForgingMr. Deepak Dheer
ForgingMr. Deepak Dheer
CastingMr. Ajit Lele
CastingMr. Ajit Lele
GearsMr. Romesh Kaul
GearsMr. Romesh Kaul
Committee of CEOsCommittee of CEOs
Chairman Secretary
Mktg HeadForging IndiaMktg Head
Forging IndiaMktg Head
CastingMktg Head
CastingMktg HeadGears IndiaMktg HeadGears India KAM Leader KAM Leader Brand
ManagerBrand
ManagerM&M as Key
Account M&M as Key
Account Market
Intelligence / Europe agents
Market Intelligence / Europe agents
Each marketing head is also KAM for specific customers
3 KAMsreporting
• Intra-Systech sales
• Steel supplies to M&M suppliers
• Branding• Website• CRM
• Market Intelligence
• Analytics• Agents co-
ordination• Non-Auto
8
Holding Structure Created to Enable Global Strategy
Mahindra Forgings Limited – An Overview
• Effective April 1, 2007, all units were consolidated under 1 listed umbrella being MFL– Focused single entity with aligned objectives to achieve seamless integration
Note: Investments in JECO & Schöneweiss are held through investment companies in Mauritius
M&MM&M
MFLMFL SCHONEWEISSSCHONEWEISS JECOJECO STOKESSTOKES
M&M: 47.1%Others: 52.9%
M&M: 100.0% M&M: 67.9%Others: 32.1%
M&M: 99.5%
M&MM&M
MFLMFL
SCHONEWEISSSCHONEWEISS JECOJECO STOKESSTOKES
M&M: 60.6%Others: 39.4%
M&M: 100.0% M&M: 100.0% M&M: 99.9%
BeforeBefore
After
After
Source – M&M Annual Report (FY07), MFL Annual Report (FY09), www.bseindia.com
9
Organic & Inorganic Growth to Attain Scale, Technology and Customer Reach
Mahindra Forgings Limited – An Overview
OverviewOverview
• Incorporated as Mahindra Automotive Steels Limited in 1999• One of the leading forging companies in the World *
– Acquisition of Chakan unit of Amforge Industries in April 2005 followed by multiple acquisitions in Europe
• In Dec. 2007, consolidated all companies under one listed umbrella being MFL– Focused single entity with aligned objectives and seamless
integration• Production capacity# in Europe is ~200,000 tons/ annum while that in
India is 60,000 tons/ annum • Total number of employees – 2,578 (Dec. 2009)
Shareholding PatternShareholding Pattern
• 1st 4,000T press at Chakan• New m/c shop at Jeco• New tool and die shop at Chakan
• Mahindra Forgings Europe formed• Machining at Stokes
• Crankshaft machining line
• 1st steering knuckle machine line
• Acquired Jeco
• Acquired Schoeneweiss
• 2nd steering knuckle machine line
• Acquired Stokes
• Acquired Amforge
• Acquired Vauxhall machining lines
• 2nd 4,000T press at Chakan
Q3 08
Q2 08
Q1 07
Q2 07
Q3 07
Q4 07
Q1 08
Q3 06
Q2 06
Q1 06
Q4 08
• Installation of 12,800 T press in Germany and 6,300 T press in Chakan
Q1 09
As on 31st Dec. 2009; Source BSE
* By capacity# refers to net capacity (defined as 70% of installed capacity - this is an industry norm after taking into account preventive maintenance, die setup time and in-process die changes)
M&M60.6%
Others37.9%
Institutions1.5%
10
Strong Manufacturing Capabilities and Product Offerings
Mahindra Forgings Limited – An Overview
• Links / Arms• Knuckles• Wheel Carriers• Spindles• Shafts• Front Axle Beams• Crankshafts• Camshafts• Con Rods
• Front Axle Assembly• Links / Arms• Piston• Knuckles• Ball Joints• Axle Shafts
• Hubs / Spindles• Links / Arms• Shafts / Gears• Flanges / Yokes• Levers / Bracket
• Crankshafts• Knuckles• Con Rods• Links / Arms• Shafts• Stub Axle
Key productsTruck + Cars
Key highlights
Plants
Location
• Among leading axle beam manufacturers globally
• Very strong co-development abilities
• Value-added/ machined products
• Provides a basket of forgings products to truck industry
• Cost leader; non-auto (marine stationary engines)
• Expertise in producing ‘flashless’ parts and near-net forgings
• Leading supplier of crankshafts and stub-axles for cars/ MUVs in India
3 Plants4 Plants2 Plants1 Plant
GermanyGermanyUKIndia
Among the leading forging companies in the WorldDiversified customer base with top 5 customers accounting for less than 50% of consolidated sales
11
Manufacturing Facilities
EuropeEurope IndiaIndia
Machining FacilityMachining Facility
12,800 T Press12,800 T Press
Mahindra Forgings Limited – An Overview
4,000T Press4,000T Press6,300T Press6,300T Press
Machining AssemblyMachining AssemblyMachining FacilityMachining Facility
12
Overview of Operations
Mahindra Forgings Limited – An Overview
EuropeEurope IndiaIndia
• A Leading manufacturer of crankshaft and stub axles for Indian cars/ MUVs and tractor manufacturers
• Non-M&M business accounts for >70% of total sales
• New Chakan unveiled after acquisition
– 4 new presses installed
– 2 machining lines installed
– Invested in well equipped die-shop
• Exports to customers like Renault, Benteler, ZF, VM Motori
• Main area of operation - CV Forgings
• >100 years of manufacturing history
• Strong innovation culture – 3 patents awarded and applied for 11 others
• Co-development partner of OEMs
• Wide range of forging capabilities – hammer forging, press forging, hot extrusion, precision forging, friction welding, 12,800T press in Germany
• Strong tool, die and machining capabilities
• Daimler and MAN are top customers
Revenue Break-up (FY09)*Revenue Break-up (FY09)*End-User SegmentsEnd-User Segments• Commercial Vehicles segment accounts for more than
half of the revenue
• Non-auto segment also accounts for a significant portion of the revenues. It includes –
• Marine (stationary engines)
• Railways
• Passenger Cars
• Tier I Suppliers
* Break-up excludes revenue from scrap, tooling, etc.
MUVs23.4%
Tractors12.8%
LCV9.5%
Passenger Cars
41.5%
Non Auto9.9%
HCV2.8%
13
Marquee Customers
Mahindra Forgings Limited – An Overview
EuropeEurope IndiaIndia
DAIMLER
DAIMLER
14
Diversified & Complementary Product Portfolio
Schoneweiss
• Links/Arms• Knuckles• Wheel Carriers• Spindles• Shafts
• Links/Arms• Piston• Knuckles• Ball Joints• Axle Shafts
Jeco
Stokes MFL India
• Crankshafts• Knuckles• Con Rods• Links/Arms
• Hubs/Spindles• Links/Arms• Shafts/Gears• Flanges/Yokes• Levers/Bracket
Stokes
JecoSchoneweiss
• Front Axle Assly.• Links/Arms• Piston• Knuckles• Ball Joints• Axle Shafts
• Knuckles• Con Rods• Links/Arms• Shafts• Stub Axle
• Front Axle Beams• Crankshafts• Camshafts• Knuckles/Spindles• Wheel Carriers• Brackets• Con Rods
• Hubs/Spindles• Links/Arms• Shafts/Gears• Flanges/Yokes• Levers/Bracket
MFL India
Passenger CarsPassenger Cars
Commercial VehiclesCommercial Vehicles
Mahindra Forgings Limited – An Overview
15
Product Details
Mahindra Forgings Limited – An Overview
Europe Europe IndiaIndia
Commercial Vehicles
Passenger Cars
Non-Auto
Front Axle Beam Steering Knuckle Pitman Arms
Rear Axle Flange Levers
Cross Beam Rear Bearing Hub Front Knuckle
Full Floating Axle Steering Knuckle
Cable Clamp Camshaft
Revolving tubes for Sky Lifts Connecting Rod
Crankshafts
Stub Axle / Steering knuckle
Suspension/ Chassis Parts
Gear Blanks
Fully assembled stabilizer
bar
16
Awards and Certifications
EuropeEurope IndiaIndia
Mahindra Forgings Limited – An Overview
17
Indian Auto Industry - Witnessing Sequential Growth
Outlook and Strategy
Source - SIAM
Source - SIAM
Robust Historical Growth in CV; Steep Fall in FY09Robust Historical Growth in CV; Steep Fall in FY09
Strong Historical Growth in Cars & UVs; Flat in FY09Strong Historical Growth in Cars & UVs; Flat in FY09
9011,061
1,142
1,380
1,5511,549
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
Dom
est
ic S
ale
s in
'0
00
Un
its
CAGR (FY04 - FY 09): ~11%CAGR (FY04 - FY 08): ~14%
259319
351
490
383468
0
100
200
300
400
500
600
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009Do
me
sti
c S
ale
s in
'0
00
Un
its CAGR (FY04 - FY 09): ~8%
CAGR (FY04 - FY08): ~ 17
18
Indian Auto Industry - Witnessing Sequential Growth
Monthly Performance – Commercial VehiclesMonthly Performance – Commercial Vehicles
Outlook and Strategy
Monthly Performance – Passenger Cars and UVsMonthly Performance – Passenger Cars and UVs
Source - SIAM
Source - SIAM
34 3443
2821 18
2331
42
30 3136 38 41
45 43 4149
4147 45
57
3634
0
10
20
30
40
50
60
Jan-
08
Feb-
08
Mar
-08
Apr-0
8
May
-08
Jun-
08
Jul-0
8
Aug-
08
Sep-
08
Oct
-08
Nov-
08
Dec-
08
Jan-
09
Feb-
09
Mar
-09
Apr-0
9
May
-09
Jun-
09
Jul-0
9
Aug-
09
Sep-
09
Oct
-09
Nov-
09
Dec-
09
Dom
estic
Sal
es in
'000
uni
ts
114124 126
99
145
165
136 141 140148
168 168 167
149
130142
167
126
147
130139
100
137
152
90100110120130140150160170180
Jan-
08
Feb-
08
Mar
-08
Apr
-08
May
-08
Jun-
08
Jul-0
8
Aug
-08
Sep
-08
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep
-09
Oct
-09
Nov
-09
Dec
-09
Dom
estic
Sal
es in
'000
uni
ts
19
MFL, India – Operational Measures Focused on Improving Profitability
Outlook and Strategy
EBITDA MarginEBITDA Margin
• Indian operations have been reporting high margins historically which were impacted only for a couple of quarters in the middle
• The company is further reducing the operational costs in order to achieve global operational standards
13.4%16.4%
17.2%
-3.2%
8.9%10.6%
8.8%
7.0%
6.3%
8.2%
-7.7%-10%
-5%
0%
5%
10%
15%
20%
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Source – Company Quarterly Filings
Operational ImprovementOperational Improvement
• Improvement in average production per day as compared to FY 09
• Yield Improvement
• Reduction in rejections
• Productivity Improvement Plan through TPM is in place
• Plan for up gradation in quality levels in ASES, MQW is in place.
• Automation on 4,000 Ton Hasenclever press line with Japanese Technology completed
• Die welding technology under implementation to improve die life
20
European Auto Industry in Revival
Outlook and Strategy
Monthly Performance – Commercial Vehicles (over 6 t)Monthly Performance – Commercial Vehicles (over 6 t)
Monthly Performance – Passenger Cars and UVsMonthly Performance – Passenger Cars and UVs
Source - VDA
Source - VDA
19
15
20 19
15
8 8 79
4 4 46
46 6 6
4
19
13
1917 18
21
0
5
10
15
20
25
Jan-
08
Feb-
08
Mar
-08
Apr
-08
May
-08
Jun-
08
Jul-0
8
Aug-
08
Sep-
08
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug-
09
Sep-
09
Oct
-09
Nov
-09
Dec
-09
CV
s (o
ver
6 t)
Pro
duct
ion
in '0
00 u
nits
435
536
449 453
310
436
373
427478
410
553507 494
347
325298
280340
580
445
492531
475517
250300350400450500550600
Jan-
08
Feb-
08
Mar
-08
Apr
-08
May
-08
Jun-
08
Jul-0
8
Aug
-08
Sep
-08
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep
-09
Oct
-09
Nov
-09
Dec
-09Ca
rs P
rodu
ctio
n in
'000
uni
ts
21
MFL, Europe – Focused on Restructuring Costs
Outlook and Strategy
• Reduction of personnel expenses by over 40% (9M FY09 to 9M FY10)
– Reduction of head count
– Up to 100 % short time working
• Reduction of fixed costs
• Stock reduction since August 2008
• Downgrading of capex to absolute minimum
• Orders taken from competitors in trouble
• Cash Flow highest priority
• Closure of Walsall plant, UK
• Other plants under the scanner
• Centralization of administration for northern companies
• Cost reduction action plans in all companies in place
EBITDA MarginEBITDA Margin
• Despite the falling volumes (in line with industry volumes), the company has been able to contain the fall in EBITDA
• This has been possible because of the cost reduction initiatives undertaken by MFL
* Based on the difference of Consolidated and Standalone Sales and EBITDA (except for quarter-ending June 07); data for quarter-ending March 09 and March 08 calculated as difference of full year numbers and sum of earlier 3 quartersSource – Company Quarterly Filings
-9.5%
-16.5%
-0.2%
8.3%
13.1%9.8%
7.2%
11.4%
8.9%
-5.6%
6.3%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Operational ImprovementOperational Improvement
22
• Strong innovation culture in Europe – 3 patents awarded and applied for 11 others
• Co-development partner with European OEMs
• Imbibes latest in forgings technology through close associations with engineering institutes like Fraunhofer Institute, Germany
• 12,800 T press in Europe ensures full service capability for CV OEMs
• Strong innovation culture in Europe – 3 patents awarded and applied for 11 others
• Co-development partner with European OEMs
• Imbibes latest in forgings technology through close associations with engineering institutes like Fraunhofer Institute, Germany
• 12,800 T press in Europe ensures full service capability for CV OEMs
• High corporate governance standards of Mahindra Group
• Other Systech group companies offer a unique opportunity to gain strategic advantage – like MUSCO for sourcing steel, MES for designing etc
• Cross selling in both India & Europe
• High corporate governance standards of Mahindra Group
• Other Systech group companies offer a unique opportunity to gain strategic advantage – like MUSCO for sourcing steel, MES for designing etc
• Cross selling in both India & Europe
• Capability to meet forging requirements of all segments
• MFL India has strong design, development and machining capabilities for car crankshafts
• Schöneweiss is among the top axle beam manufacturers globally
• Stokes has expertise in producing ‘flashless’parts and near-net forgings
• Jeco (and its subsidiaries) provide a wide range of forging products
• Capability to meet forging requirements of all segments
• MFL India has strong design, development and machining capabilities for car crankshafts
• Schöneweiss is among the top axle beam manufacturers globally
• Stokes has expertise in producing ‘flashless’parts and near-net forgings
• Jeco (and its subsidiaries) provide a wide range of forging products
• Strong diversified customer relationships in India & Europe
• Among the market leaders in India and strong competitive advantages in Europe
• Long term strategy – to optimize production across locations based on manufacturing capabilities and customer needs
• Strong diversified customer relationships in India & Europe
• Among the market leaders in India and strong competitive advantages in Europe
• Long term strategy – to optimize production across locations based on manufacturing capabilities and customer needs
Key Ingredients of a success story in place
Outlook and Strategy
Key Strengths
Leveraging European Technology and Customer Access with Indian Manufacturing Expertise
Leveraging European Technology and Customer Access with Indian Manufacturing Expertise Strong Manufacturing CapabilitiesStrong Manufacturing Capabilities
Technology & Innovation CultureTechnology & Innovation Culture Strong Parentage and Synergies with Systech Group Companies
Strong Parentage and Synergies with Systech Group Companies
23
Europe
• Fundamentally restructure costs
• No further investments required Europe to sustain future growth
India
• Higher capacity utilization
• Improvement in yields leading to saving in raw material consumption
• Improvement in rejection ratios
• Improvement in die life through new die-welding technology
Reboot
Outlook and Strategy
Growth Strategy
Europe
• Focus on process innovation to differentiate
– Co-development approach with key OEMs
– Association with key engineering institutes like Fraunhofer Institute, Germany
India
• Increase customer base through exports
– Leverage European customer access
• Deeper relationships with new OEMs entering India
• Moving up the value chain
– Investments into new machining lines completed
• Diversifying into non-auto business (railways and marine)
Re-invent
• Focused centres of excellence
– Crankshafts and stub-axles in India
– CV forgings in Europe
• Increase production capabilities in India by investing in higher tonnage presses and additional machine lines
• Maintain Technology leadership in CV forgings in Europe
• Maintain market share in Europe and grow in India
Re-ignite
24
India
Management Profile
Mr. Hemant Luthra,
Systech President, Non-executive Director of Mahindra Forgings
Mr. Hemant Luthra,
Systech President, Non-executive Director of Mahindra Forgings
Mr. Sanjay Joglekar
Chief Financial Officer, Systech
Mr. Sanjay Joglekar
Chief Financial Officer, Systech
Mr. Vikas SinhaSr. GM Corporate
Strategy
Mr. Vikas SinhaSr. GM Corporate
Strategy
• Joined Mahindra & Mahindra Limited (M&M) as Executive Vice President - Corporate Strategy in December 2001
• Serves on several Boards and is also Chairman of Various Mahindra Group companies• He is a member of the Group Management Board of M&M• Has 36 years of varied and rich work experience in Operations, Finance, Business Development and
Private Equity• He is a graduate of the Indian Institute of Technology, Delhi where he was nominated for the
President’s Gold Medal for best all-round student• He has also been through the Advanced Management Program at the Harvard Business School
• Joined Mahindra & Mahindra Limited (M&M) as Executive Vice President - Corporate Strategy in December 2001
• Serves on several Boards and is also Chairman of Various Mahindra Group companies• He is a member of the Group Management Board of M&M• Has 36 years of varied and rich work experience in Operations, Finance, Business Development and
Private Equity• He is a graduate of the Indian Institute of Technology, Delhi where he was nominated for the
President’s Gold Medal for best all-round student• He has also been through the Advanced Management Program at the Harvard Business School
• Is a chartered accountant from the Institute of Chartered Accountants India• Has varied experience of 30 years in financial management, organization restructuring, operations
& HR• Joined the Mahindra Group in Sept 2004 and heads the finance function at Systech • Spearheaded financial integration of domestic & international acquisitions at Systech
• Is a chartered accountant from the Institute of Chartered Accountants India• Has varied experience of 30 years in financial management, organization restructuring, operations
& HR• Joined the Mahindra Group in Sept 2004 and heads the finance function at Systech • Spearheaded financial integration of domestic & international acquisitions at Systech
• Is a graduate of the Indian Institute of Technology, Delhi and an alumnus of the Indian Institute of Management, Ahmedabad
• Has 15 years of experience in operations, management consulting & corporate strategy• Currently, looks after strategy formulation & execution at Systech and its constituent companies
• Is a graduate of the Indian Institute of Technology, Delhi and an alumnus of the Indian Institute of Management, Ahmedabad
• Has 15 years of experience in operations, management consulting & corporate strategy• Currently, looks after strategy formulation & execution at Systech and its constituent companies
25
India (Cont’d.)
Management Profile
Mr. Deepak Dheer
Managing Director
Mr. Deepak Dheer
Managing Director
Mr. AdvaitHalbe
Vice President – CRM
Mr. AdvaitHalbe
Vice President – CRM
Mr. Shankar Urolagin
General Manager –Engineering
Mr. Shankar Urolagin
General Manager –Engineering
Mr. Ajay MantryChief Financial OfficerMr. Ajay MantryChief Financial Officer
• Mr. Deepak Dheer is a Graduate in Mechanical Engineering from IIT Chennai, and has done his Post Graduation Diploma in Business Management from IIM, Ahmedabad
• He has a vast experience of 36 years in various industries. • He worked for Tata Motors Limited and Tata Robins Limited, Jamshedpur in various capacities.• He has worked with UNIGLOVE, Bangkok as CEO and handled Exports to USA and European countries.• Mr. Dheer has held various senior positions in several reputed companies like Guest Keen & Williams, Times of
India Group. Ranbaxy Laboratory etc.
• Mr. Deepak Dheer is a Graduate in Mechanical Engineering from IIT Chennai, and has done his Post Graduation Diploma in Business Management from IIM, Ahmedabad
• He has a vast experience of 36 years in various industries. • He worked for Tata Motors Limited and Tata Robins Limited, Jamshedpur in various capacities.• He has worked with UNIGLOVE, Bangkok as CEO and handled Exports to USA and European countries.• Mr. Dheer has held various senior positions in several reputed companies like Guest Keen & Williams, Times of
India Group. Ranbaxy Laboratory etc.
• Mr. Halbe has 25 years of professional experience including 4.5 years at MFL• His last assignment was with ZF Steering, Pune (India) and holds a post-diploma in Auto Engineering
• Mr. Halbe has 25 years of professional experience including 4.5 years at MFL• His last assignment was with ZF Steering, Pune (India) and holds a post-diploma in Auto Engineering
• Mr. Urolagin has 17 years of professional experience including 2.5 years at MFL• His last assignment was with V Cube Forge, Aurangabad (India) and holds a Bachelor of Engineering (B.E.) in
Mechanical Engineering
• Mr. Urolagin has 17 years of professional experience including 2.5 years at MFL• His last assignment was with V Cube Forge, Aurangabad (India) and holds a Bachelor of Engineering (B.E.) in
Mechanical Engineering
• Is a Chartered Accountant and Cost Accountant• Has 16 years of professional experience including 1.5 years at MFL• His last assignment was as the CFO of MUSCO-Stampings
• Is a Chartered Accountant and Cost Accountant• Has 16 years of professional experience including 1.5 years at MFL• His last assignment was as the CFO of MUSCO-Stampings
Mr. Y Y Chaudhari
General Manager –Quality Assurance
Mr. Y Y Chaudhari
General Manager –Quality Assurance
• Mr. Chaudhari has 26 years of professional experience including 3 years at MFL• His last assignment was with ASAL, Pune (India) and holds Bachelor of Engineering (B.E.) in Mechanical
Engineering
• Mr. Chaudhari has 26 years of professional experience including 3 years at MFL• His last assignment was with ASAL, Pune (India) and holds Bachelor of Engineering (B.E.) in Mechanical
Engineering
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Europe
Management Profile
Mr. Thomas Koerner
CEO of Mahindra Forgings Europe AG and chairman of the Management Board
Mr. Thomas Koerner
CEO of Mahindra Forgings Europe AG and chairman of the Management Board
Mr. Burkard Rausch
Board Member (CFO) of Mahindra Forgings Europe AG, Managing
Director of Jeco-Jellinghaus GmbH
Mr. Burkard Rausch
Board Member (CFO) of Mahindra Forgings Europe AG, Managing
Director of Jeco-Jellinghaus GmbH
Mr. Ernst-Peter Schmitz
Managing Director of GSA and CTO of
Mahindra Forgings (Global)
Mr. Ernst-Peter Schmitz
Managing Director of GSA and CTO of
Mahindra Forgings (Global)
Dr. RonaldRittmann
Sales Director -Mahindra Forgings Europe; Manager
Merger & Acquisitions; Sales
Director Schöneweiss GmbH & Co. KG
Dr. RonaldRittmann
Sales Director -Mahindra Forgings Europe; Manager
Merger & Acquisitions; Sales
Director Schöneweiss GmbH & Co. KG
• Thomas started his career in 1979 as a Sales Representative of CDP in Germany & has more than 28 years of work experience in the forging industry
• After CDP he joined Jeco Jellinghaus GmbH in 1989 as a Sales Representative and was appointed the CEO of the company in 1998
• He led the acquisition of GSA and Falkenroth and was instrumental in managing the merger of Jeco Holding with M&M
• Thomas started his career in 1979 as a Sales Representative of CDP in Germany & has more than 28 years of work experience in the forging industry
• After CDP he joined Jeco Jellinghaus GmbH in 1989 as a Sales Representative and was appointed the CEO of the company in 1998
• He led the acquisition of GSA and Falkenroth and was instrumental in managing the merger of Jeco Holding with M&M
• Mr. Rausch is an agricultural engineer and banker having more than 23 years of management experience
• He worked as CFO for CLAAS (agricultural machinery) and STROMAG AG (clutches and brakes)
• Mr. Rausch is an agricultural engineer and banker having more than 23 years of management experience
• He worked as CFO for CLAAS (agricultural machinery) and STROMAG AG (clutches and brakes)
• He has more than 25 years of work experience in forgings• Worked in various positions of the Automotive forging industry in Germany particularly in the area
of Engineering and Design, customer service, technical support and technical management
• He has more than 25 years of work experience in forgings• Worked in various positions of the Automotive forging industry in Germany particularly in the area
of Engineering and Design, customer service, technical support and technical management
• He is responsible for Sales & Post Merger Integration of the recently formed Mahindra Forgings Europe AG and is also the Sales Director of Schöneweiss
• Over the last decade he acquired a vast experience of both automotive market and the metal forming industry
• He is responsible for Sales & Post Merger Integration of the recently formed Mahindra Forgings Europe AG and is also the Sales Director of Schöneweiss
• Over the last decade he acquired a vast experience of both automotive market and the metal forming industry
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Financial Summary (INR)
Financial Summary
Standalone FinancialsStandalone Financials
(902)One-time write-off (Stokes)
47
2,391
2,430
7,042
(414)
2.6%
61
2,371
FY 09
(42)
15.6%
339
2,168
9M (Dec) FY 10 #
28 41 Cash and Bank Balance
2,901 1,839 Total Fixed Assets (inc CWIP)
2,098 1,001 Total Debt
8,031 1,444 Shareholders' Funds
(142)(125)Profit (loss) (excluding one-time writeoff)
8.2%8.9%EBITDA (% of net sales)
175 188 EBITDA
2,141 2,114 Net Sales
FY 08FY 07INR Mn
# 9M (Dec) FY 10 financials (unaudited) as per the Q3 FY10 Release
(182)One-time write-off (Stokes)
543 348 437 Cash and Bank Balance
13,027 14,004 14,372 Total Fixed Assets (inc CWIP)
8,840 8,740 8,114 Total Debt
8,250 8,232 9,272 Shareholders' Funds
(1,675)(1,166)158 Profit (loss) (excluding one-time writeoff)
-1.9%5.7%8.4%EBITDA (% of net sales)
(173)1,276 1,952 EBITDA
9,343 22,424 23,187 Net Sales
9M (Dec) FY10 @FY 09FY 08INR Mn
Consolidated Financials *Consolidated Financials *
* Consolidation was effective from FY08 only; @ Limited Review
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Financial Summary (USD)
Financial Summary
Standalone FinancialsStandalone Financials
(19)---One-time write-off (Stokes)
1
47
48
139
(8)
2.6%
1
47
FY 09
-
-
-
-
(1)
15.6%
7
47
9M (Dec) FY 10 #
1 1 Cash and Bank Balance
72 43 Total Fixed Assets (inc CWIP)
52 23 Total Debt
201 34 Shareholders' Funds
(4)(3)Profit (loss) excluding one-time write-off (Stokes)
8.2%8.9%EBITDA (% of net sales)
4 4 EBITDA
54 49 Net Sales
FY 08FY 07USD Mn
(4)--One-time write-off (Stokes)
12 7 11 Cash and Bank Balance
280 277 359 Total Fixed Assets (inc CWIP)
190 173 203 Total Debt
177 163 232 Shareholders' Funds
(36)(23)4 Profit (loss) excluding one-time write-off (Stokes)
-1.9%5.7%8.4%EBITDA (% of net sales)
(4)25 49 EBITDA
201 443 579 Net Sales
9M (Dec) FY10 @FY 09FY 08USD Mn
Consolidated Financials *Consolidated Financials *
* Consolidation was effective from FY08 only@ Limited Review
# 9M (Dec) FY 10 financials (unaudited) as per the Q3 FY10 Press ReleaseExchange Rate as on the last day or the period used for conversion from INR to USD (source – www.x-rates.com)
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Disclaimer
This presentation does not constitute an offer or solicitation of an offer to purchase or subscribe for any securities in any jurisdiction including India and the United States. No part of this presentation should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.
This presentation contains certain forward looking statements, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and globally, our ability to manage our international operations, government policies, fiscal deficits, regulations, etc. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. No part of this presentation shall be reproduced, copied, forwarded to any third party either in print of in electronic form without prior express consent of the company.
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