Endurance Technologies Limited October-2019 Strictly Private & Confidential
Cautionary Statement The presentation may contain, without limitation, certain statements that could be considered forward-looking. Such forward-looking statements do not guarantee future performance; and may involve risks and uncertainties that could cause actual performance or results to be materially different from those anticipated in these forward-looking statements. The Company is under no obligation to update any forward-looking statements contained herein, should material facts change due to new information, future events or otherwise. For historical financial numbers, readers are advised to refer to the financial statements approved by the Board of Directors of the Company, as appearing in the Annual Reports and quarterly Stock Exchange filings. The financial numbers in this presentation are from financial statements prepared and reported under Indian GAAP (I GAAP till 2015-16 and Ind AS thereafter). Financial ratios have been calculated based on customary definitions. 2
Company Snapshot • Experience in the two-wheeler, three-wheeler and four-wheeler Automotive Components Industry • 1985 - Commenced high-pressure die-casting operations in Aurangabad (1) • Largest Aluminium die-casting company in India (2) • Multi-solution Provider with a Diverse Product Portfolio • Four Product categories - Aluminum Casting and Machining, Suspension, Transmission, Braking Systems • Tier I supplier to 2W, 3W and 4W OEMs • Strategically Located Facilities with Close Proximity to Original Equipment Manufacturers (OEMs) • 26 facilities in multiple locations across India & Europe • 1 upcoming facility in India at Chennai (Tamil Nadu) • End-to-end Service Provider to Customers • Capabilities across Design, Development, Validation, Testing, Manufacturing, Delivery, and aftermarket sale for a wide range of technology-intensive auto component products • Strong R&D Capabilities • 10 Patents and 7 design registrations received, 62 Patent applications, 4 DSIR (3) approved R&D facilities 1 Tech Center in Italy • 210 R&D personnel globally • Profitability with Scale, Improved Return on Capital Employed and Deleveraged Balance Sheet • Track record of consistent outperformance to broader industry growth with standalone revenue growing at a CAGR of 10% as against India two wheeler production growing at a CAGR of 7% over FY 2012-19 • Highlights from Consolidated Financials (4) : FY19 – Revenue INR 75,375mn ; FY19 ROACE : 24.8% ; FY19 Return on Equity: 20.9% ; Net Debt/Equity: 0.1X Notes: 1. Refers to Anurang Engineering, which merged with Endurance Technologies in August 2006. 2. In terms of actual output and installed capacity in FY2017 (Source: Aluminium Casters' Association 3 of India). 3. DSIR: Government of India - Department of Scientific and Industrial Research. 4. ROACE = Return on Average Capital Employed = EBIT/Average Capital Employed. Average Capital Employed calculated as Average of Shareholders Equity and Total Debt; Return on Equity = PAT/Average Shareholders Equity; Net Debt to Equity = Net Debt / Total Shareholder’s Funds..
Revenues Profile (1) across Vehicle Type and Entity FY 2019 Revenue by Vehicle Type Revenue by Entity 2 Wheelers 56.3% 4 Wheelers 32.2% 3 wheelers & Others 11.5% Note: 1. Based on consolidated financials. 4
Corporate Structure Promoter Group - 75% Aluminum Castings, Suspension, Endurance Technologies Ltd. (ETL) Transmission and Braking Systems Public- 25% Overseas Subsidiaries 95% Endurance Overseas Srl Endurance Amann GmbH (Turin, Italy) (Massenbachhausen, Germany) 5% High-pressure Die Casting Special Purpose Vehicle and Machining Wholly Owned Wholly Owned Wholly Owned Endurance SpA Endurance Castings SpA Endurance Engineering Srl (Lombardore, Chivasso and Grugliasco, Italy) (Bione, Italy) (Turin, Italy) High Pressure Aluminium Die Casting Moulding of High Pressure Aluminium Die and Machining Plastic Parts Casting Fonpresmetal Gap SpA was Endurance Fondalmec SpA was merged acquired by Endurance with Endurance F.O.A. SpA effective 1 st Overseas Srl on 7 th Jan. 2019. Jan. 2019 and its name was changed to and its name was changed to Endurance SpA. Endurance Castings SpA 5
India: Tier 1 Supplier of Diverse Product Offerings to OEMs Endurance supplies a diverse range of technology-intensive products to 2W / 3W / 4W OEMs Two Wheelers Three Wheelers Shock Front Forks Cylinder Block Absorbers Drum Brake Cylinder Head Clutch Hydraulic Shock Assembly Absorbers Master Cylinder Tandem Master Drum Brake Cylinder Clutch Rotary Disc Assembly Four Wheelers Alloy Wheel Engine Cover Small Commercial Gearbox Housing Vehicle Clutch Disk Brake Crank Case Assembly Components Brake Caliper Alloy Wheel Rotary Disc Assembly Quadricycle Shock Aluminium Casting Braking Suspension Transmission Absorbers and Machining Systems 6 6
Europe: Diverse Product Offerings to OEMs Endurance is a Tier 1 Supplier for multiple technology intensive products to 4W OEMs Suspension and Body Parts Steel Wheel Hubs Head Axles Steering housing Cross member Engines Parts Specialty Cam Carrier Plastic Cover Transmission Parts Transmission Torque Convertor Exhaust Manifold Gear Box Housing Housing housing Various Oil pan brackets 7
Strategically Located Facilities with Close Proximity to OEMs 26 plants in multiple Locations across India & Europe Pantnagar Germany Italy Sanand Halol Aurangabad and Pune Chennai No. Of India Locations Plants Kolar Aurangabad, Maharashtra 8 Pune, Maharashtra 3 Europe Locations No. Of Plants Pantnagar, Uttarakhand 2 Massenbachhausen, Germany 3 R&D Facilities Chennai, Tamil Nadu 1 Torino, Italy 1 Aurangabad, 3 Sanand and Halol, Gujarat 2 Chivasso, Italy 2 Maharashtra Kolar, Karnataka 1 Grugliasco, Italy 1 Pune, Maharashtra 1 Total 17 Lombardore, Italy 1 Total 4 Bione, Italy 1 Upcoming plant Test Track Manufacturing Facilities Total 9 R&D Facilities / Tech. center 8
End-to-end Solution Provider to Customers • Provide end-to-end services from conception • Focus on developing to end-user delivery innovative, lean and cost competitive designs to • Aftermarket sale for a wide maintain a technological range of technology edge across product range intensive auto components products • Manufacturing facilities in • Structured product proximity to customers, to development to get "first ensure timely delivery time right" products • Facilities (including • Manufacture wide range of Proving ground) for products serving the material, component, diverse requirements of product and vehicle level customers testing QCDDM focus leading to customer satisfaction 9 9
Consistent Outperformance over Industry Growth Endurance has consistently outperformed growth in the broader industry by successfully expanding its customer base, focus on R&D, ability to manage costs and reducing new product development time. While Industry has shown reasonable growth… …Endurance has Transformed its business between 2012 – 2019 FY19 FY12 (INR Mn, unless specified) India Production - FY12 vs. FY19 (‘000s) FY12 FY19 CAGR FY12–19 Total Income 54,337 27,855 (Standalone) Motorcycles 4.7% 11,983 16,503 FY 2012 FY 2019 Total Income 75,375 (Consolidated) 38,423 2,659 15.1% 7,095 FY 2012 FY 2019 Scooter 6.6% PAT Margin 4.8% (Consolidated) (1) Leverage FY 2012 FY 2019 (Consolidated) 1.4 Moped 786 2.0% 905 (Net Debt to Equity - 0.1 times) (2) FY 2012 FY 2018 24.8% 20.3% 2W Industry 24,503 6.8% Return on Avg. Capital 15,428 Employed (Consolidated) (FY2013 – 2019) (3) FY 13 FY 19 Customers with 11 >INR1bn 2 3W Industry 879 5.4% 1,269 Sales (FY 2010 – 2019) FY 10 FY 19 Notes: Source: Industry data sourced from SIAM. Financials are under INDAS from FY 15-16 onwards & under IGAAP till FY 14-15. 1. Calculated as profit before minority interest divided by total revenue. 10 2. Net Debt to Equity = (Long Term Borrowings + Short Term Borrowings + Current maturities of long term borrowings – Cash and bank balances – Current investments) / Total Shareholder’s Funds. 3. ROACE = EBIT/(Average Capital Employed). Average Capital Employed calculated as Average of Shareholders Equity and Total Debt
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