Corporate Profile

June 2014

a member of SAMVARDHANA MOTHERSON GROUP

Simplified SMRP BV structure

(India)
36%
49%

49%
(India)
51%

51%

Samvardhana Motherson
Polymers
(India)

Samvardhana Motherson
Global Holding
(Cyprus)

31%

69%

SMRP BV

98%
Samvardhana Motherson
Reflectec Group Holdings
(Jersey)

100%
SMP Automotive
Technology Iberica
(Spain)

100%
Samvardhana Motherson
Peguform
(Germany)
95%

Subsidiaries

Note:

Subsidiaries

5%

SMP Deutschland
(Germany)

Subsidiaries

Post completion of Minority buyout in June 2014

a member of SAMVARDHANA MOTHERSON GROUP

Our philosophy
Vision: To be a globally preferred solution provider
Key elements of SMG philosophy

Growth creating a more diversified and less risky business

Customer risk

TRUST

ASKED TO
DO MORE

Product risk
FOCUS ON
CONSISTENT
OUTSTANDING
PERFORMANCE

RETURN ON
PURPOSE

Deepening
customer bond
No single customer
dependence

Diversified product
range
Increasing content
per car

INCREASE
CONTENT/
VALUE PER
CAR

3CX15
PROUD TO BE
PART OF WAY
OF LIFE (PURPOSE)

Presence in 25
countries both
developed and
emerging
economies

Cautious approach
through a derisked
business model
Technology risk

Manufacturing risk

Geographical risk

Focus on consistent outstanding performance

Never compromise on product quality
Relentless focus on cost and capital efficiency (QCDDMSES)(a)
Trust: Superior performance nurtures client relationships
Asked to do more:
Leverage trust to enable greater client engagement
Sole supplier status and R&D collaboration
Increase content/value per car: Trust and increased engagement to drive
cross-sell
Pride in purpose/way of life: Sustainable value creation, fuelling top and
bottom line as well as the de-risking

Alternate
manufacturing
options with 147
plants worldwide
Standardised
operations across all
plants enable easy
switchover

Investing in future
technologies

Currency risk

Manufacturing and
sales in same currency
regions gives natural
hedge
Pass through
arrangements for
major fluctuations

(a)
Quality, Cost, Delivery, Development, Management, Safety, Environment and Sustainability
Source: Company data

a member of SAMVARDHANA MOTHERSON GROUP

SMR division
Established business with superior product portfolio, demand visibility, high quality manufacturing and robust profitability
Comprehensive product portfolio
Basic

Medium

Commercial

Select customers
Premium

Interior mirrors

22% global market share

Manufacturing footprint

14 countries
22 manufacturing plants
and 1 sequence centre

Revenue and EBITDA (m)

Adj EBITDA
(m)
Adj EBITDA
margin (%)

39

64

101

4.6%

6.6%

9.4%

842

8,000+ motivated workforce

Manufacturing and assembly plants
Development, project management
and sales commercial centres
R&D centres
Sequence centre

FY-12

970

FY-13

1,082

FY-14

Note: March fiscal year-end

Source: LMC Automotive, Company data

a member of SAMVARDHANA MOTHERSON GROUP

SMP division
One of the largest suppliers of bumper, instrument panel and door panels to European automotive OEMs
Comprehensive product portfolio

Select customers

Bumpers

Instrument panels

Door panels

9%, 18% and 23% global market shares

Manufacturing footprint
7 countries
15 manufacturing plants and 8
just-in-sequence logistic
centres

Revenue and EBITDA (m)

Adj EBITDA
(m)
Adj EBITDA
margin (%)

60

104

nm

3.3%

5.4%

1,823

1,916

FY-13

FY-14

~10,000 workforce

635
Manufacturing plant
Engineering and project management centre

5-month
FY-12

R&D centres
Module centre (just-in-sequence logistics)
Note: March fiscal year-end
Source: Company data

a member of SAMVARDHANA MOTHERSON GROUP

Leading global market positions

Global leadership: One in
every four passenger cars
has SMRP BVs products

SMRP BV market shares and ranking in exterior mirrors, bumpers,

IP and door panels FY-14
Europe(b)

42%

China
12%

North America(a)
Europe Premium Market(c)

21%

31%

17%

China Premium Market(c)

Mexico

52%

12%

5%

Asia-Pacific (excl China)

24%

22%

South America

13%

Bumpers

Instrument panels (IP)

Comprehensive product
portfolio

Focus on premium segment

High customer switching
cost (complex products,
logistics, module
assembly expertise)
Leveraging technological
know-how to basic/
medium segments

Global Premium Market(c)

9%
18%
23%

Exterior mirrors

Global footprint
Strong in-house R&D
focus

26%

Global

Market leadership
supported by:

Door panels

OEMs relationship, comprehensive product portfolio and innovation though strong in-house R&D
to cement leadership position
Note:
(a)
(b)
(c)

March fiscal year-end. Market share based on total production by volume in the relevant region for both domestic and export markets
Includes Mexico
Excludes Russia
Premium segment refers to passenger cars with premium brand image, including those produced under the Acura, Audi, BMW, Cadillac, Infinity, Jaguar, Land Rover, Lexus, Lincoln, Mercedes-Benz, Porsche and Tesla
brands, as well as luxury cars, sports cars and selected high-priced vehicles of other brands (typically exceeding 20,000 base price)
Source: LMC Automotive and Company estimates
a member of SAMVARDHANA MOTHERSON GROUP

Global Manufacturing Footprint

Local to >80% of global automotive
industry
Development, engineering, project management and sales commercial centres
R&D centres
Module and sequence centres

Bulky product nature and increasing

vehicle customisation require
physical proximity to OEMs
Just-in-time" and "Just-insequence" deliveries
Efficient inventory management
Minimise transport time and cost
Competitive low-cost production
footprint (~54% of plants in low-cost
countries such as Brazil, India, China,
Mexico and Hungary)

37 manufacturing
facilities
16 countries

Modern facilities with optimal level

of automation and high quality
standards (ISO 14001, ISO 9001,
TS 16949, OHSAS16001)

20 development,
engineering, project
management and sales
centers

SMRP BV present in most OEMs

approved suppliers list, as it is
compliant with OEMs strict criteria

9 logistics centers
4 R&D centers

Capacity expansion only on the back

of firm orders

Workforce of 18k+
Source: Company data

a member of SAMVARDHANA MOTHERSON GROUP

Well positioned to tap favourable industry dynamics

A

Increased OEM outsourcing

Changing OEM-supplier relationship dynamics

OEM supplier
interdependency

Today
Components
makers
content per
car 80%

Car makers
content per
car 80%
20%

High
dependence
by OEMs means
very close and
long-term business
relationships

Price competitiveness
Part quality assurance

PAST
(Focus on price)

1980

Process quality
assurance
R&D competencies
Global supply
capabilities
Financial strength
Part quality assurance
Price competitiveness

Globalisation of platforms

Greater level of electronics

Background:
Global supply capability as a pre-condition
SMRP BV building capacity in Germany and China to support
global platform launch

Process quality assurance

Global process standards
R&D competencies
Commonalty of parts
by platform
Co-development
Integration competencies
Global supply capabilities
Financial strength
Part quality assurance
Price competitiveness

PRESENT/ FUTURE
(Strategic partnerships)

Increased component content per car

Key aspects

Case study: German OEM sedan

High complexity systems with

integrated electronic
communication features
Increased differentiation
between segments
Partially driven by increasing
safety and environment focus

SMRP BV examples
Camera systems
replacing exterior
mirror
Lighting & Sensor
integration
Sensor based
pedestrian protection

Serving clients globally and providing value-added products are success factors in automotive industry
with increasing dependence on suppliers
Source: Company data

a member of SAMVARDHANA MOTHERSON GROUP

Diversified business portfolio backed by strong order book

Diversified portfolio (FY-14 revenue)
Strong order

book(a)

worth 7.7bn

By OEM
Others
4% 12%
4%
4%

Well diversified across OEMs and geography

Enhanced top-line visibility
High repeat business based on OEM relationship, collaborative
R&D and past experience
300 car model programs
The largest and top ten programs contributed 4.8% and
31.5%, respectively, to our FY-14 revenues

Continued de-risking via growth (number of programs)

325

8% 9%

21%

By product
Others
Instrument
5%
panels 'IP'
19%
Door panels
17%

Mirrors
35%

Bumpers
24%

By geography

>300

Americas
12%
Asia
19%

289

FY-12

5%
8%

25%

FY-14

FY-17E

Europe
69%

Note:
(a)

March fiscal year end

Potential revenues from contracts not yet in production stage. As per market practice, our customers generally do not guarantee purchasing volumes and have the right to terminate orders without
penalties. Therefore, our actual sales volumes, and thus the ultimate amount of revenue that we derive from such sales are not committed. If actual production orders from our customers are not
consistent with the projections we use in calculating the amount of our awarded business, we could realise substantially less revenues over the life of the projects than the currently projected estimate
Source: Company data and estimates

a member of SAMVARDHANA MOTHERSON GROUP

Track record for innovation

Established R&D infrastructure position SMRP BV as technology and innovation leader

Focus areas

Long track-record of market-first products

Safety

700+ R&D engineering staff with 900+ patent portfolio

Environment

Efficiency

21 centres of excellence for project management and advanced engineering

Aesthetics

No dependence on single critical patent/trademark

Turn signal in
exterior
mirrors

1997

1998

1999

First plastic
hatchback
tailgate

LIN-bus-systems
in exterior
mirrors

2000

Camera-based
blind spot
detection
systems

2001

First doubleslush
instrument
panel

2002

Airbag lid in
two-component
technology

Side-lookerLED turn
signal lamps

2003

2004

Universal airbag

Light guide
style turn
signal lamps

2005

Power
telescopic
and power
folding mirrors

2006

First modern 3part front

bumper cover
design

2007

Two tone
provides slush

Logo Lamp

2008

2009

Door panels
manufactured
with innovative
natural fiber
processing

PlasticGlass

2010

2011

Heated surfaces
in interiors

Interior and
exterior mirror
replacing
camera systems

2012

Next generation
vision based
sensor
technology

2014

Battery trays
for electric
vehicles

Sensor
integration in
bumpers for
pedestrian
detection

Superior innovation an outcome of sustained focus and investment in R&D at times even 2 3 years before product launch
In development stage

a member of SAMVARDHANA MOTHERSON GROUP

SMRP BV strategy

Retain and strengthen technological leadership through continued focus on R&D and
innovation

Continue disciplined global expansion through selected investments backed by new orders

Increase customer penetration and diversification

Drive further efficiency and continue to improve our cost base and cash generation

Focus on profitable growth and pursue strategic acquisitions while maintaining our
conservative financial policy

a member of SAMVARDHANA MOTHERSON GROUP

10

Summary Income Statement (IFRS)

Income Statement million

Revenue
Changes in inventories
Other operating Income
Cost of materials
Personnel expenses
Depreciation and amortization
Other operating expenses

Result from operating activities

Finance income
Finance costs
Finance costs - net
Share of after-tax profits/(losses) of joint ventures
accounted for under the equity method
Share of after-tax profits/(losses) of associates
accounted for under the equity method

Earnings Before Taxes (EBT)

FY12-13

FY 13-14

2,792

2,997

2
38
(1,872)
(549)
(79)
(287)

3
66
(1,978)
(571)
(86)
(311)

45

119

1
(40)
(39)
2

17
(30)
(14)
3

(0)

Income taxes

(20)

Profit / (loss) for the year

(13)

a member of SAMVARDHANA MOTHERSON GROUP

108
(29)

80

11

Summary Balance Sheet (IFRS)

March-13
PP&E
Intangible Assets
Other Non-Current Assets

578
38
56

March-14

March-13

March-14

596 Provision for Pensions

31 Financial Liabilities
67 Liabilities accounted using the
equity method and related
parties
Other Non-Current Liabilities

10
221
20

11
267
44

75

77

Non-Current Assets

672

694 Non-Current Liabilities

326

398

Inventories
Trade Receivables
Cash and Equivalents

146
412
59

355
320
14

400
165
24

Other Current Assets

49

147 Trade Payables

406 Financial Liabilities
86 Liabilities accounted using the
equity method and related
parties
48 Other Current Liabilities

173

194

687 Current Liabilities

862

783

1,189

1,181

92
16
41

154
(3)
49

149

200

1,338

1,381

Current Assets

667

Liabilities
Invested Capital
Translation Reserve
Non-Controlling Interest
Equity
Total Assets

1,339

1,381 Equity + Liabilities

a member of SAMVARDHANA MOTHERSON GROUP

12

Appendix

a member of SAMVARDHANA MOTHERSON GROUP

13

SMR division product overview

Catering for all sizes of vehicles and price segments
Exterior mirrors
Basic

Full plastic design

Grained housings
Solid color molding
Painted covers
Bulb based turn signals
Flat and convex glass
Manual mirror fold
Manual glass adjustment

Medium

Painted housings
and covers
Convex and
aspheric glass
Electric glass adjustment
Power fold mechanisms
Glass heating
LED based turn signals
Temperature sensors

Interior mirrors
Premium

Memory glass
position adjustment
Auto-dimming glass
LED light guide
turn signals
Ground illumination
Central electronic
control unit
Surround-view cameras
Integrated blind spot
detection systems
Warning lights for driver
assistance systems
Logo-projection lamps

Commercial vehicle

Grained and painted

housings and covers
Bulb and LED
turn signals
Glass heating
Manual and electric
glass adjustment
Manual and power fold
Manual and power
telescope feature

Auto dimming glass

Microphones
Radio controlled garage
door openers
Integrated displays
& switches
Rain sensors
Interior air temperature
and humidity sensors
Telematics-interfaces
ECTS(a)

SMR focus on premium segment ensures forefront presence in terms of innovation and technological development
SMR well-positioned as value-add features on the premium segment gradually migrate to low and medium-cost segments
(a)

Electronic Toll Collect System

a member of SAMVARDHANA MOTHERSON GROUP

14

SMP division product overview

Bumpers

Market leader for bumper covers in

Germany and Spain
Innovation leadership: introduced
plastic bumper in Europe in 1977
Integrated value-added features fog
lamps, air ducts, parking sensors,
chrome trims, washer nozzels, grills
and emblems
Supply program includes completely
pre-assembled complex
front-end modules

Instrument panels

Diverse Product range: from simple

instrument panels to highly complex
cockpits with integrated air vents,
decorative trim, switch boards, glove
boxes etc
Strong competence and
innovation record

Door panels

Fully completed systems with textile,

leather and slush surfaces
Natural fibre solutions: Increasing
number of structural carriers made
by natural fibre reinforced
polymers (NFPP)

Cost-friendly production of high

quality surfaces (ie soft-touch,
moulded textures)
Integration of airbags

Integrated value-added features

including crash beams, lighting
systems, air coolers, air vents and
washer nozzles

a member of SAMVARDHANA MOTHERSON GROUP

15