Fina nce Presenta tion 0 3-Ma rch-20 20 Mum ba i Inv estor Meet - PDF document

0 1 1 Fina nce Presenta tion 0 3-Ma rch-20 20 Mum ba i Inv estor Meet

Forward Looking Statem ent 1 In this docum ent, w e have disclosed forw ard-looking inform ation to enable investors to com prehend our prospects and take investm ent decisions. This docum ent and other statem ents–w ritten and oral–that w e periodically m ake, contain forw ard-looking statem ents that set out anticipated results based on the m anagem ent’s plans and assum ptions. We cannot guarantee that these forw ard-looking statem ents w ill be realised, although w e believe w e have been prudent in our assum ptions. The achievem ents of results are subject to risks, uncertainties and even inaccurate assum ptions. In this docum ent, w e have assessed our perform ance versus our nearest com petitor using publicly available inform ation and our internal assessm ent of m arket perform ance triangulating inform ation from different sources. Readers should keep this in m ind. Should know n or unknow n risks or uncertainties m aterialise, or should underlying assum ptions prove inaccurate, actual results could vary m aterially from those anticipated, estim ated or projected. We undertake no obligation to publicly update any forw ard-looking statem ent or com parative assessm ents, w hether as a result of any new inform ation, future events or otherw ise. We accept no responsibility for any loss and/ or dam ages, risks and/ or liabilities, w hich m ay be incurred and/ or suffered by any investor on account of or arising from the use of the inform ation by investors. We m ake no w arranties of any kind, w hether express or im plied, as to the adequacy of such inform ation for any intended purpose of the investors. 1

1.5 X growth in Net Turnover 1 Net turnover 16% CAGR (INR MN) 125,000 105,883 100,000 91,862 75,835 75,000 68,477 50,000 2015-16 2016-17 2017-18 2018-19 Euro (MN) 845 936 1,134 1,307 US$ (MN) 978 1,083 1,312 1,513 @ constant Fx # standalone Financial Statement 2

With a corresponding 1.4X rise in EBITDA 1 EBITDA 11% CAGR (INR MN) 16,000 14,113 14,000 12,408 12,000 10,825 10,261 10,000 8,000 2015-16 2016-17 2017-18 2018-19 Euro (MN) 127 134 153 174 US$ (MN) 147 155 177 202 @ constant Fx 2019-20 2018-19 (9 Months) EBITDA% 13.3% 14.0% # standalone Financial Statement 3

PBT has grown year on year 1 PBT * 8 % CAGR (INR MN) 12,000 11,302 10,479 9,757 10,000 9,081 8,000 6,000 2015-16 2016-17 2017-18 2018-19 Euro (MN) 112 120 129 140 US$ (MN) 130 139 150 161 @ constant Fx * PBT is before exceptional items #s from standalone Financial Statement 4

Overall, PAT has an increasing trend 1 Adjusted Profit after tax* 8 % CAGR (INR MN) 8,000 7,671 6,955 6,936 7,000 6,244 6,000 5,000 2015-16 2016-17 2017-18 2018-19 Euro (MN) 77 86 86 95 US$ (MN) 89 99 99 110 @ constant Fx * Adjusted for exceptional items #s from standalone Financial Statement 5

State of art Capex ensures Exide’s future readiness 1 Capital Expenditure (INR MN) 9,000 7,534 6,910 6,000 4,435 4,305 3,000 2015-16 2016-17 2017-18 2018-19 Euro (MN) 53 55 93 85 US$ (MN) 61 63 108 99 @ constant Fx Quality Capacity Charging Technology improvement/ Statutory Tools Year Enhancement capacity Upgradation cost savings requirements Moulds Others Total 2015-2016 1,386 551 706 499 86 215 861 4,305 2016-2017 1,428 568 727 514 89 222 887 4,435 2017-2018 1,751 1,649 889 448 367 468 1,962 7,534 2018-2019 3,274 1,334 997 248 104 278 675 6,910 #s from standalone Financial Statement 6

We generate sufficient cash for re-investm ent 1 —Exide is a debt-free com pany Cash flow from operations (INR MN) 12,000 10,037 9,000 6,000 5,166 4,310 3,000 0 2016-17 2017-18 2018-19 Euro (MN) 53 64 124 US$ (MN) 62 74 143 @ constant Fx Reason for sharp increase in 20 18 -19: Decrease in Net working capital and improvement in “own generation” #s from standalone Financial Statement 7

‘Best in Class’ Return on capital em ployed* 1 ROCE (%) 40% 32.1% 29.5% 28.8% 30% 26.4% 20% 10% 2015-16 2016-17 2017-18 2018-19 * Battery business ROCE #s from standalone Financial Statement 8

EPS has grown in line with profitability 1 Adjusted EPS* 7% CAGR (in INR) 15 9.02 10 8.16 8.18 7.35 5 0 FY16 FY17 FY18 FY19 * Adjusted for exceptional items #s from standalone Financial Statement 9

Maintained high Dividend payout over the years … declared 1 record dividend in FY20 Dividend Average Dividend payout of 35% in last four years (in INR MN) 5,000 4,180 4,000 3,000 2,460 2,460 2,430 2,430 2,000 FY16 FY17 FY18 FY19 FY20 (declared) Euro (MN) 30 30 30 30 52 US$ (MN) 35 35 35 35 60 @ constant Fx Flat dividend in the last four years due to high outflows on Capex requirements #s from standalone Financial Statement 10

FY’20 Revenue down due to external factors; however costs well 1 under control Net Revenue EBITDA m argin 9M 20 19-20 9M 20 19-20 INR 78 ,0 16 MN 14.0 % INR 79,8 97 MN 13.0 % 9M 20 18 -19 9M 20 18 -19 PBT m argin* PAT m argin* 9M 20 19-20 9M 20 19-20 11.1% 8 .7% 10 .3% 7.0 % 9M 20 18 -19 9M 20 18 -19 * Before exceptional items #s from standalone Financial Statement 11

Taxation: 1 Schem es by Govt. and 20 19 am endm ent to Tax Ordinance Opted for lower tax regim e of 25.17% Sabka Vishwas, Vivaad Se Vishwas Settlem ent of Dispute Schem es by State Governm ents 12

Measures we took to im prove profits this year 1  Increased em ployee productivity  Deployed m ore Solar in power mix  Tightened costs: Rationalised num ber of warehouses  Ensured FMEA led Warranty reduction  Used Telepresence for routine meetings  Waste reduction Standardised best practices at factories to reduce scrap and improve yield  initiatives across the SAP driven locks to lim it Overheads within budget  Superm art for spares value chain  Consolidated shipm ents of Auto & Industrial  Concur for spend m anagem ent   Ensured product m ix goals with weekly actionable MIS Transport module to optimize SAP-process  utilization of fleet im provem ent with Improved inventory control with Scan solutions  better analytics  Richer section level analytics Used Ariba for Sourcing efficiency  Improving machine utilisation on bottlenecked lines  Capacity extraction Within the same ‘ampere hour’ product group, producing higher m argin SKUs and restricting production of low running SKUs  Industry 4.0 Pilot factory Im plem entation of  Launched Exide NEO erickshaw innovation projects  Quality Circles led process innovations 13

We aim to m axim ize Investor returns through key levers 1 Cost Im proved Revenue growth com petitiveness profitability Consistent dividends Maintaining edge on raw m aterials • Addressing costs : • – Employee – Warranty – Power and Fuel 14