wabco india limited - overview · 2019-10-03 · wabco confidential and proprietary safe harbor...

WABCO Confidential and Proprietary

WABCO INDIA LIMITED

Business Update

WELCOME

July 8, 2016

1


Introduction

P. Kaniappan Managing Director

R.S. Raja Gopal Sastry Chief Financial Officer

2


Safe Harbor Statement

3

Statements in this document describing the Company's objectives, projections,

estimates and expectations may be "forward looking statements" within the meaning

of applicable securities laws and regulations. Actual results could differ materially

from those expressed or implied due to many factors. Important factors that could

make a difference to the Company's operations include, among others, economic

conditions affecting demand / supply and price conditions in the domestic and

overseas markets in which the Company operates, changes in the Government

regulations, tax laws and other statutes and incidental factors. The Company does

not undertake any obligation to update such forward-looking statements. All market

and industry data are based on Company estimates.


WABCO INDIA

No.1 Supplier to Indian Market • 1962 : Sundaram Clayton Ltd established (TVS group and Clayton Dewandre, UK : JV)

• 1977 : WABCO acquired Clayton Dewandre

• 2009 : WABCO takes majority control in the brakes division of

Sundaram Clayton Limited - WABCO TVS

• 2011 : WABCO TVS became WABCO INDIA Limited

Well established to serve customers across India

2007

2005

2012

2011

2013

2008

2015 Market leader for more than five decades

Sales of ₹1838 Crores in 2015-16

3,200 employees (>300 engineers)

5 manufacturing sites

– fully aligned to customers’ needs

4


WABCO INDIA Sales Drivers

Utilizing all levers to generate sales growth

• Industry Growth

• Market Outperformance through content increase

OE

• Increase in Vehicle Parc

• New product Introduction

Aftermarket

Exports

5


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M&

HC

V P

rod

uct

ion

Y-o

-Y%

IIP

Y-o

-Y%

IIP Y-o-Y % M & HCV Production Y-o-Y%

Index of Industrial Production, GDP

Vs M&HCV Production

M&HCV production strongly correlated to macro economic indicators 6

0

200

400

600

800

1000

1200

1400

1600

0

50

100

150

200

250

300

350

400

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

GD

P in

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HCV GDP


Commercial Vehicle Legislation Update

Growth opportunities created by convergence of safety legislation

red = in discussion

7

Region Status (April 2016)

2015 2016 2017 2018 2019 2020 2021 2022

100% ABS

EPA 10

100% ABS

trailer: 100% RSS

EURO VI

ABS N3 for

dangerous goods,

M3 tourist coach

ESC M & N > 11.8 t Autom. Driving permissible AEBS

light veh. AEBS V2X / DSRC light vehicles

ESC

AEBS & LDWS M & N > 3.5 t

ABS Agriculture < 60 km/h

Autom. Driving permissible

VRUD

ABS N2 for dangerous goods,

N3 & M3

ABS for heavy trailers

BS IV (EURO IV) nationwide


Global Technology Adoption

Different rates of tech adoption present a rich reservoir of organic growth 8


Differentiated through Sustained

Technology Innovation

The leading record of “industry first” innovations for commercial vehicles

1980’s 2009

2010

1996

2000 2004 2007 2008

2001

2003

2015

Anti-Lock Braking System (ABS)

Traction Control System

Pneumatic Transmission Automation System

Electronically Controlled Air Suspension (ECAS)

Trailer EBS

Electronic Braking System (EBS)

Roll Stability Support (RSS) for Trailers

Integrated Vehicle Tire Monitoring (IVTM TM)

ECAS for automotive

Electronic Stability Control (ESC)

Adaptive Cruise Control

d-compTM Dual Stage Compressor

Trailer EBS-E

Hydraulic Transmission Automation System

New Generation Air Disc Brake

Air System Protector

RSSplusTM Roll Mitigation System

OnGuardTM

Collision Mitigation System

h-compTM High Output Compressor

OptiDriveTM Transmission

Automation System

OnGuardMAXTM

Autonomous Emergency

Braking System

Trailer Telematics

ESCsmartTM

Simulation System

Trailer OptiLoadTM

c-compTM Clutch Compressor

Trailer OptiTurnTM

OnGuardPLUSTM

Advanced Emergency Braking System

TrailerGUARDTM

Telematics

Air Disc Brake MAXXTM22

Trailer Remote Control

TailGUARDTM Rear Blind Spot Detection

FuelGuardTM Electronic Air Processing Unit

e-compTM Electrically Driven Compressor

New Generation Automated Manual Transmission

Improved Integrated Vehicle Tire Monitoring (IVTM TM)

MAXXUSTM Air Disc Brake

OnLaneTM - Lane Departure Warning System

2013

2011 2012

Modular EBS

OptiFlowTM SideWings

EBS for Hybrid Drivelines

mBSP TM Modular Braking Platform

EC-APU Air System Protector

OptiFlowTM Tail

OptiPaceTM

MAXX22TTM Air Disc Brake

OnGuardACTIVETM

Electronic Stability Control (ESC) for Hydraulic Braking

9


Global Engineering Footprint

Global Product Development

Local Product Development

System Application & Validation

INDIA

SOUTH KOREA

CHINA

GERMANY

JAPAN

POLAND

UNITED STATES OF AMERICA

BRAZIL

GREAT

BRITAIN

• Leverage Indian frugal engineering

globally in all designs

• SW Competence Center in India

• Focus on System and Advanced

Development in Europe

• Follows a rigorous Six Sigma approach

R&D SPEND AS % OF SALES

Year 2011 2012 2013 2014 2015

WABCO India 1.1% 1.1% 0.7% 0.7% 0.8%

WABCO Group 3.8% 4.2% 4.4% 5.1% 5.3%

• Global footprint with main development sites in India, Poland & Germany 10


WABCO Value Proposition

Applying technology to support OEM and Fleet needs

Braking Systems

Stability Control

Collision Mitigation

Accident Mitigation

Accident Prevention

Fuel Efficiency

Emissions Reduction

Energy Recovery

Weight Reduction

Maintenance Costs

Driver Capability

Big Data

Driver Behavior

Autonomous Driving

Preventive Maintenance

Fleet Management Solutions

11


WABCO Vision for Vehicle Safety

A roadmap towards a vision for zero accidents

Collision Mitigation

TailGUARDTM

Blin

d S

po

t M

on

ito

rin

g

Pedestrian Detection

mBSP Electronic Stability Control

Blind Spot Warning

Driver Behavior Monitoring

Blind Spot Monitoring

Collision mitigation → avoidance

Driver behavior monitoring

2025 2020 TODAY

Accident prevention

Active steering

Autonomous driving

Safety 360°

Active Steering

12


WABCO Vision for Vehicle Efficiency

Leading in solutions to reduce total cost of operation

2025

Clutch Compressor/Electronic Air Processing Automated Manual Transmission Electronically Controlled Air Suspension Aerodynamics

2020 TODAY

Lightweight Air Disc Brake Next Gen Automated Manual Transmission Aluminum Compressor

Electro-Mechanical Hand Brake

Adaptive Cruise Control

Fuel Saving: 122gal/125,000ml

CO2 Saving: 2688lbs

Clutch Compressor Electronic Air Processing Unit


CO2 Saving: 7596lbs

Tyre Pressure Monitoring


CO2 Saving: 8181lbs

Aerodynamics for Trailers


CO2 Saving: 17530lbs

Automated Manual Transmission


CO2 Saving: 18114lbs

13


Supplier to domestic OEMs

WABCO INDIA’s Supply Chain Leadership

Leverage powerful capabilities to deliver differentiation and value

Local manufacturing of

global product

Design and manufacturing of

subsystem for global OEMs

Supplier of components for

global needs

Design and Manufacturing of global products

2006 2014 2008 2010 2012 2016

Centre of

excellence

for select

products

14


2015 Sales by Product Group

• Supplying an extensive product and systems portfolio

EBS & ESC

Wheel End

Compressors Air Processing

Brake Controls

Electronic Controls &

Monitoring Systems

Suspension

Control

Transmission

Automation

ABS Car Products

11%

11%

12%

6% 10%

4%

9%

15%

10%

9%

Telematics

3%

15

WABCO

WABCO INDIA


777 868 732 641

856

1,202

116 177

234 470

492

637

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Export

Domestic

WABCO India Performance

Performance driven by portfolio enhancement and execution excellence

SALES IN ₹ CRORES

893 1046

966

1111 1348

1838 PBT IN ₹ CRORES

191

216

185

161 177

271

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

16


Customer Awards

SML ISUZU “Product upgradation

through innovation” award for the

year 2015.

Daimler India Commercial Vehicles

“Innovation award” award for the year 2015

Recognition of excellence through awards

Ashok Leyland’s “Best in class

performance in Quality” award for the

year 2014-15

Tata Motors' “Supplier of the

year” award for the year

2014-15

Volvo Eicher “Overall

cost excellence” award

for 2015

17 17


Total Employee Involvement Awards

Gold award in NIQR Six Sigma competition First prize in National productivity championship competition conducted by IMTMA

Recognition of excellence through awards

First Prize in Quality Month competition conducted by Ashok Leyland for suppliers

First prize in ACMA regional QCC competition

18


107 145

191

407 420 497

19

33

37

55 61

75

26

27

28

29

42

70

0

7

12

14

14

30

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Services Received

Purchases

Services Rendered

Sales

Gross Transactions With Group Entities

Expanding positive trade balance by successfully supporting “make in India”

IN RUPEES (CRORES)

Gross transaction = Sales + Purchase ( goods + capital) + Services + Royalty/Technical Fees

153

212 268

504 537

672

19


190

1,728

3,518 5,367

7,319

0

1000

2000

3000

4000

5000

6000

7000

8000

18-Jun-09 18-Jun-10 18-Jun-11 18-Jun-12 18-Jun-13 18-Jun-14 18-Jun-15

Share Price in INR

Share Price Trend

Solid generation of shareholder value

5,817

31-May-16

20

WABCO acquired

majority stake


Conclusion

Generating future sales growth through regional content gap closure 2

Leader in technology innovation 1

3 Cyclical domestic OE business complemented by increasing exports

Perfectly positioned to convert market opportunities into shareholder value 21


Discussions

22


23


Financials

24

WABCO INDIA LIMITED

Registered Office: Plot No.3 (SP),III Main Road, Ambattur Industrial Estate, Chennai 600058

CIN:L34103TN2004PLC054667,Ph.91 44 42242000 , Fax .91 44 42242009,www.wabcoindia.com, Email: [email protected]

Part I

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH 2016

(Rupees in lakhs)

3/31/2016 12/31/2015 3/31/2015 3/31/2016 3/31/2015

(Audited) (Unaudited) (Audited) (Audited) (Audited)

1 Income from operations

(a) Net Sales / Income from operations (Net of excise duty) 53,935.86 43,200.71 36,233.78 173,985.95 127,153.44

(b) Other operating income 2,716.02 2,579.01 2,085.94 9,841.13 7,642.90

Total income from operations (net) 56,651.88 45,779.72 38,319.72 183,827.08 134,796.34

2 Expenses

(a) Cost of materials consumed 38,111.51 28,775.86 22,247.80 112,109.99 79,003.25

(b) Changes in inventories of finished goods, work-in-progress and stock-in-

trade

(3,315.23) (1,385.76) 555.37 (2,135.97) 290.68

(c ) Employee benefits expense 4,669.45 4,534.70 3,940.25 17,378.38 14,344.87

(d) Depreciation and amortisation expense 1,467.11 1,420.33 1,209.11 5,623.69 4,666.37

(e) Other expenses 9,147.34 6,089.15 5,940.13 27,195.82 20,822.11

Total expenses 50,080.18 39,434.28 33,892.66 160,171.91 119,127.28

3 Profit from operations before other income and finance costs and

exceptional items

6,571.70 6,345.44 4,427.06 23,655.17 15,669.06

4 Other income 1,020.91 606.04 590.32 3,460.96 2,029.89

5 Profit from ordinary activities before finance costs and exceptional

items

7,592.61 6,951.48 5,017.38 27,116.13 17,698.95

6 Finance costs 0.06 - 16.95 0.06 36.09

7 Profit from ordinary activities after finance costs but before

exceptional items

7,592.55 6,951.48 5,000.43 27,116.07 17,662.86

8 Exceptional items - - - - -

9 Profit from ordinary activities before tax 7,592.55 6,951.48 5,000.43 27,116.07 17,662.86

10 Tax expense 1,864.01 1,799.04 1,960.53 6,654.46 5,596.82

11 Net profit from ordinary activities after tax 5,728.54 5,152.44 3,039.90 20,461.61 12,066.04

12 Extraordinary items (net of tax expense) - - - - -

13 Net profit for the period 5,728.54 5,152.44 3,039.90 20,461.61 12,066.04

14 Net profit after taxes, minority interest and share of profit of

associates

5,728.54 5,152.44 3,039.90 20,461.61 12,066.04

15 Paid-up equity share capital 948.38 948.38 948.38 948.38 948.38

(Face value of the Share: Rs 5/- each fully paid)

16 Reserve excluding revaluation reserves as per balance sheet of previous

accounting year

- - - 105,816.97 85,355.36

17 (i) Earnings per share (before extraordinary items) (not

annualised):

(a) Basic 30.20 27.16 16.03 107.88 63.61

(b) Diluted 30.20 27.16 16.03 107.88 63.61

(ii) Earnings per share (after extraordinary items) (not annualised):

(a) Basic 30.20 27.16 16.03 107.88 63.61

(b) Diluted 30.20 27.16 16.03 107.88 63.61

S.No. Particulars

Quarter ended Year ended


Financials

25

Part II

(Rupees in lakhs)

(Audited) (Unaudited) (Audited) (Audited) (Audited)

A PARTICULARS OF SHAREHOLDING

1. Public Shareholding

- Number of Shares 4,741,900 4,741,900 4,741,900 4,741,900 4,741,900

- Percentage of shareholding 25% 25% 25% 25% 25%

2. Promoters and Promoter Group Shareholding

a) Pledged/ Encumbered

- Number of Shares NIL NIL NIL NIL NIL

- Percentage of shares (as a % of the total shareholding of promoter and

promoter group)

NIL NIL NIL NIL NIL

- Percentage of shares (as a % of the total share capital of the company) NIL NIL NIL NIL NIL

b) Non-Encumbered

- Number of Shares 14,225,684 14,225,684 14,225,684 14,225,684 14,225,684

- Percentage of shares (as a % of the total shareholding of promoter and

promoter group)

100% 100% 100% 100% 100%

- Percentage of shares (as a % of the total share capital of the company) 75% 75% 75% 75% 75%

Particulars Quarter ended 0 0 Year ended 0


Financials

26

Statement of assets and liabilities (Rupees in lakhs)

Particulars As at

31.03.2016

As at

31.03.2015

(Audited) (Audited)

A EQUITY AND LIABILITIES

1 Shareholders’ funds

(a) Share capital 948.38 948.38

(b) Reserves and surplus 105,816.97 85,355.36

Shareholders' funds 106,765.35 86,303.74

2. Non-current liabilities

(a) Deferred tax liabilities (net) 993.79 1,645.24

(b) Other long-term liabilities 3.00 3.00

(c) Long-term provisions 1,684.86 1,871.90

Non-current liabilities 2,681.65 3,520.14

3. Current liabilities

(a) Trade payables 34,661.89 17,790.05

(b) Other current liabilities 7,580.05 2,331.50

(c) Short-term provisions 716.88 1,402.50

Current liabilities 42,958.82 21,524.05

Equity and liabilities 152,405.82 111,347.93

B ASSETS

1. Non-current assets

(a) Fixed assets 37,326.79 34,137.03

(b) Non-current investments 220.24 220.24

(c) Long-term loans and advances 3,421.01 2,291.83

Non-current assets 40,968.04 36,649.10

2. Current assets

(a) Current investments 21,800.00 3,700.00

(b) Inventories 17,563.65 11,797.03

(c) Trade receivables 43,572.68 29,915.05

(d) Cash and cash equivalents 21,303.62 22,305.12

(e) Short-term loans and advances 7,058.20 6,812.57

(f) Other current assets 139.63 169.06

Current assets 111,437.79 74,698.83

Total Assets 152,405.82 111,347.93

B. INVESTOR COMPLAINTS

Particulars3 months ended

31-03-2016

Pending at the beginning of the quarter Nil

Received during the quarter 1

Disposed of during the quarter 1

Remaining unresolved at the end of the quarter Nil

NOTES:

1

2

3 The Company operates in one segment, namely automotive components.

4

5

6 The figures for the previous period / year have been regrouped wherever necessary to conform to the current year's classification.

For and on behalf of the Board

Chennai M Lakshminarayan

19th May 2016 Chairman

The above audited financial results for the quarter ended 31st March 2016 were reviewed by the Audit Commmittee and upon its recommendation, were approved

by the Board of Directors at its meeting held on 19th May 2016.

The Board of Directors have recommended a dividend of Rs.---- per equity share absorbing a sum of Rs……... lakhs (including dividend distribution tax) for the

year ended 31st March 2016, subject to the approval of the shareholders at the ensuring annual general meeting of the Company.

The Share Transfer books and register of members of the company will remain closed for a period of 2 days commencing from 28th July 2016 to 29th July 2016

(both days inclusive) for the purpose of annual general meeting of the company .

During the current quarter w.e.f January 1, 2016, the Company has entered into a revised royalty agreement for the use of technical knowhow, trademark and other

services availed from group / related party. Pursuant to this agreement, the Company has recognised a charge of Rs. 1,422.22 lakhs in the quarter ended March 31,

2016


27

wabco india limited - overview · 2019-10-03 · wabco confidential and proprietary safe harbor...

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