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Strictly Confidential
INVESTOR PRESENTATION
March 2016
Strictly Confidential
Overview
Founded 1985
BusinessIntegrated auto and non-auto component manufacturer with operations across
forging, iron casting, aluminium casting, machining and sub-assemblies
SegmentsAuto: Passenger cars, 2/3 wheelers, Light and Heavy Commercial Vehicles
Non-Auto: Construction, Oil & Gas, Railways, Earth Moving and Agricultural
Manufacturing FacilitiesFacilities spread across India, Japan, Thailand, China, Germany, Hungary, Italy,
Romania, Sweden, UK, Brazil, Mexico and US
Key CustomersBMW, BorgWarner, Caterpillar, CNH America, Cummins, Fiat, Ford, GM, Halliburton,
Hero, Honda, JCB, Maruti Suzuki, Tata JLR, Timken and Volkswagen
Amtek Auto Consolidated Revenues Rs 70,789m (US$ 1,067m) – FY2016 (6 months ended Mar 31, 2016)
Amtek Auto Consolidated EBITDA(a) Rs. 7,938m (US$ 120m) with margins of 11.2% – FY2016 (6 months ended Mar 31,
2016)
Note:
INR/USD exchange rate of 66.33 as of Mar 31, 2016 sourced from www.rbi.org
(a) EBITDA is calculated as Profit before Tax and exceptional items + Depreciation and Amortization + Finance costs
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42.1%
Notes: Shareholding break-up as of Mar 31, 2016
Amtek Auto also directly holds 10% stake in AWTL Technologies Pte Ltd
Amtek Precision
Engineering Pte. Ltd.
Singapore (Scholz)
Amtek Integrated Solutions
Pte. Ltd. Singapore
(Techno Metal Amtek
Japan Investment)
Simplified Organization Structure
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Amtek Auto Limited
Castex Technologies Metalyst ForgingsJMT Auto
ListedUnlisted
Foreign Entity
Amtek Auto Limited
Promoters
49.99%
Alliance Hydro Power Ltd
JMT Auto Ltd66.8%
Subsidiary Companies
Castex Technologies Ltd
MPT Amtek
SMI Amtek
Metalyst Forgings Ltd
30.6%
49.3%
50.0%
50.0%
Joint Ventures and Associates
Amtek Transportation
Systems
70.0%
100.0%
Amtek Global
Technologies Pte.
Ltd., Singapore
78.5% 21.5%
Amtek Kuepper
GmbH
16.3%
100.0%
100.0%
99.9%
0.1%
Joint Venture
ARGL Ltd
ACIL Ltd44.0%
Amtek Machining
Systems Pte Ltd
100.0%
Institutions13.35%
Non Institutions
36.66%
Promoter 49.99%
Institutions
7.56%
Non Institution
s45.58%
Promoter46.86%
Institutions
6.73%
Non Institutio
ns
39.11%
Promoter 54.16%
Institutions
17.93%Non
Institutions
10.34%
Promoter71.73%
Amtek Components
Sweden
Rege Holding GmbH
100.0%
100.0%
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Reve
nu
e T
ren
ds
R
eve
nu
eB
rea
kd
ow
n
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Notes:
Total Revenue includes Net Sales and Other Income
FY12, FY14 and FY15 represent 12 months period ended June 30, 2012, Sep 30, 2014 and Sep 30, 2015 respectively; FY13 represents 15 months period ended Sep 30, 2013; FY16 represents 6 months ended Mar 31, 2016
FY14 Proforma Kuepper Annualized includes annualized 6 months financials for Kuepper
*FY15 Proforma represents twelve month FY15 revenues excluding Castex Technologies and Metalyst Forgings and adjusted for new acquisitions (Scholz, Asahi Tec and REGE)
For FY16 INR/USD exchange rate of 66.33 as of Mar 31, 2016 sourced from www.rbi.org. FY16 geographical revenue breakdown based on management summation of revenues by manufacturing site locations
Revenue Transformation
86.8%76.3%
62.5%
46.3%
24.3%
13.2%20.5%
31.1%
42.8%
54.9%
3.2% 6.4%6.2%
4.8%
4.7%16.0%
FY12 FY13(15 months)
FY14 FY15 FY16(6 monhts)
India Europe Americas Asia (EX-India)
India, 24.3%
UK, 7.0%
Hungary, 0.3%
Germany, 34.9%
Italy, 7.4%
Sweden, 5.2% US, 2.8%
Brazil, 1.6%
Mexico, 0.4%
Japan, 12.5% Thailand,
3.4%
$ 1,268mRs. 76,222m
$ 1,759mRs. 105,726m
$2,549mRs. 157,057m
$ 2,653mRs. 163,431m
$ 2,343mRs. 154,036m $ 2,247m
Rs.149,029m
FY12 FY13(15 months)
FY14 FY14 Proforma Kuepper Annualized
FY15 Proforma* FY16 Annualized
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Geographic Presence
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Forging
Iron Casting
Aluminium Casting
Machining and Sub-Assemblies
Joint Ventures
International Corporate Office
Sales Office
India Europe Asia ex. India Total
Global Head Office 1 1
International Corporate Offices 1 1 2
Sales Office 1 1
US
Mexico
UK
Brazil
Germany
Italy
Hungary
Singapore
Japan
IndiaThailand
RomaniaChina
Sweden
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Amtek Group - Business Overview
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Connecting Rod Camshaft Wheel Hub
Cylinder Head Cylinder Block Turbo charger Front Axle
Support
Intake Manifold Clutch Case Cover Transmission
Case
Tank Car
Super Finish Shaft
Steel Cap
Piston
Crankcase
Gear Flywheel Crankshaft
Intermediate Crab
FAB Assembly
Railway Wagons,
Locomotive Engine
Components
Engineering, Industrial,
Oil & Gas
Tractors,
Construction and
Earth Moving Equipment
Light and Heavy
Commercial Vehicles
2/3 Wheelers
Passenger Vehicles
Iron Casting
Forging
Aluminium
Casting
Machining and
Sub-Assemblies
Non Auto
No
n A
uto
Au
to
High value added, performance and safety critical components; High barriers to entry
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Customers
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Auto Sector Non - Auto Sector
2/3 Wheelers Passenger Cars
Light Commercial
Vehicle
Heavy Commercial
Vehicle Others Tractors Railways Others
Note: In alphabetical order
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2.4% 1.8%
8.9%
5.0%2.8% 4.1%
7.0%
2.4%
(6.0)%
(14.3)%
North America United States Mexico Western Europe
Germany Asia China India South America Brazil
Industry Overview
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CY2016 Global Passenger Car Sales Growth Forecast
FY2017 Indian Automotive Sales Growth Forecast
Source: Scotiabank Global Auto Report May 2016
Notes: FY2016 represents Year ending Mar 31, 2016; CY2016 represents Year ending Dec 31, 2016
M&HCV = Medium and heavy commercial vehicles; LCV = Light commercial vehicles
For United States, Mexico and North America, estimate includes Light Trucks
7.0%
13.5%
7.5%
11.5%
1.5%
18.0%
Passenger Vehicles M&HCV LCV Commercial Vehicles Motorcycles Scooters
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Strategic Transformation Through a Series of Acquisitions
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Key Metrics FY14 FY15 FY16 *
Revenues US$ 2,549mUS$ 2,343m*
(Proforma)
US$ 2,247m*
(Proforma)
International Contribution 37.5% 72.7%** 76.9%
Head/International OfficesNew Delhi, Frankfurt and
Singapore
New Delhi, Frankfurt and
Singapore
New Delhi, Frankfurt and
Singapore
Transformed into a global company for Forging, Casting, Machining & Sub-assemblies
Notes:
FY14 represents year ended Sep 30, 2014
*FY15 Proforma represents twelve month FY15 revenues excluding Castex Technologies and Metalyst Forgings and adjusted for new acquisitions (Scholz, Asahi Tec and REGE)
** Indicates proforma contribution after excluding Castex Technologies and Metalyst Forgings and adjusting for new acquisitions (Scholz, Asahi Tec and REGE)
*FY16 Six months results ending Mar 31, 2016 annualized, INR/USD exchange rate of 66.33 as of Mar 31, 2016 sourced from www.rbi.org
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66,312 80,687
98,025 98,025
70,180
17,205
9,910
25,039
59,042 65,406
81,955
53,583
FY12 FY13(15 months)
FY14 FY14 Proforma Kuepper Annualized
FY15 FY16(6 months)
India International
Financial Metrics: Amtek Auto
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Revenue and Growth
US$ 1,067m
Rs 70,789mUS$ 1,268m
Rs 76,222m
US$ 1,759m
Rs 105,726m
US$ 2,549m
Rs 157,067m
Notes:
Total Revenue includes Net Sales and Other Income
FY12, FY14 and FY15 represent 12 months period ended June 30, 2011, June 30, 2012, Sep 30, 2014 and Sep 30, 2015 respectively; FY13 represents 15 months period ended Sep 30, 2013; FY16 represents 6 months
ended Mar 31, 2016
FY14 Proforma Kuepper Annualized includes annualized 6 months financials for Kuepper
For FY16, INR/USD exchange rate of 66.33 as of Mar 31, 2016 sourced from www.rbi.org
US$ 2,653m
Rs 163,431m US$ 2,314m
Rs 152,135m
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19,251 23,709
28,50928,509
17,416
3,199
1,050
1,130
6,014 6,784
6,673
4,739
26.6%23.5%
22.0% 21.6%15.8%
11.2%13.0% 23.7%
37.6%
40.0%
53.9%
75.7%
FY12 FY13(15 months)
FY14 FY14 Proforma Kuepper Annualized
FY15 FY16(6 months)
India International Margin Share of international business in revenue
Financial Metrics: Amtek Auto
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EBITDA(a) and Margins
Notes:
EBITDA includes Other Income
(a) EBITDA is calculated as Profit before Tax and exceptional items + Depreciation and Amortization + Finance costs
FY12, FY14 and FY15 represent 12 months period ended June 30, 2011, June 30, 2012, Sep 30, 2014 and Sep 30, 2015 respectively; FY13 represents 15 months period ended Sep 30, 2013, FY16 represents 6 months
ended Mar 31, 2016
FY14 Proforma Kuepper Annualized includes annualized 6 months financials for Kuepper
For FY16, INR/USD exchange rate of 66.33 as of Mar 31, 2016 sourced from www.rbi.org
US$ 120m
Rs 7,938m
US$ 338m
Rs 20,301m
US$ 413m
Rs 24,839m
US$ 560m
Rs 34,523m
US$ 573m
Rs 35,293m
US$ 366m
Rs 24,090m
Margins decline is primarily due to increase in sales contribution from overseas business
which structurally works at a lower EBITDA margin…..
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Financial Metrics: Amtek Auto
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Balance Sheet
Notes:
For FY15, INR/USD exchange rate of 65.74 as of Sept. 30, 2015 sourced from www.rbi.org
FY16 represent 6 months period ended Mar 31, 2016 respectively
(a) Net Debt is calculated as Total Debt (Long Term Borrowings+ Short Term Borrowings + Current maturity of Long Term Debt due)-Current Investments-Cash and Equivalents
(b) EBITDA is calculated as Profit before Tax and exceptional items + Depreciation and Amortization + Finance Costs
FY15 FY16
(Rs. m) (US$ m) (Rs. m) (US$ m)
Long Term Borrowings 94,190 1,433 93,550 1,410
Short Term Borrowings 27,448 418 32,040 483
Current maturity of Long Term Borrowings 24,082 366 26,360 397
Total Debt 145,720 2,217 151,950 2,291
Cash & Cash Equivalents (Incl Current
Investments)(6,000) (97) (4,670) (70)
Net Debt(a) 139,721 2,267 147,270 2,220
Shareholder’s Funds (including Minority
Interest)66,044 1,005 54,385 820
Strictly Confidential
Disclaimer
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By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations:
The information in this presentation has been prepared for use in presentations about Amtek Auto Limited, its subsidiaries, joint ventures and associates, as the context
may so require (“Amtek”) and does not constitute a recommendation regarding the securities of Amtek. This presentation is confidential and must not be taken
away, copied, reproduced, distributed or passed (in whole or in part), directly or indirectly, to any other person (whether within or outside your organisation or firm), or
published in whole or in part, for any purpose, at any time without prior consent from Amtek. This presentation is only being made available to parties who hereby agree to
treat it as confidential and not to disclose any information contained herein. By attending the meeting where this presentation is made, or by reading the presentation
slides, you agree to be bound by the following limitations and represent that you are a person who is permitted under applicable law and regulations to receive information
contained in this presentation.
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the
information, or opinions contained herein. Such information and opinions are in all events not current after the date of this presentation. Neither Amtek nor any of its
affiliates, advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this
presentation or its contents or otherwise arising in connection with this presentation. The information set out herein may be subject to
updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market
and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this
presentation, which neither Amtek nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm.
The information communicated in this presentation contains certain statements that reflect Amtek’s beliefs, plans and expectations about the future and are or may be
forward looking. These statements typically contain words such as “will”, “expects”, “plans” and “anticipates” and words of similar import. These forward-looking statements
are based on management’s current expectations or beliefs as well as a number of assumptions about Amtek’s operations and beyond Amtek’s control which are
expressed in good faith and in their opinion reasonable, and by their nature forward looking statements involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. Any investment in securities issued by Amtek will also involve certain risks. There may be additional material risks
that are currently not considered to be material or of which Amtek and its advisors or representatives are unaware. Against the background of these uncertainties, readers
should not rely on these forward-looking statements. Amtek assumes no responsibility to update forward-looking statements or to adapt them to future events or
developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person and
may be altered, modified or otherwise changed in any manner, without obligation to notify any person of such change or changes.
This presentation and the information contained herein does not constitute or form part of any offer or advertisement, for sale or subscription of or solicitation or invitation
of any offer to buy or subscribe for any securities of Amtek. This presentation and the information contained herein is being furnished to you solely for your information and
may not be reproduced or redistributed to any other person, in whole or in part. In particular, neither the information contained in this presentation nor any copy hereof may
be, directly or indirectly, taken or transmitted into or distributed in the U.S., Canada, Australia, Japan or any other jurisdiction which prohibits the same except in
compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. No
money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. This presentation is not intended to be a prospectus (as
defined under the Companies Act, 2013, to the extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2009 as amended.
By reviewing this presentation, you are deemed to have represented and agreed that you and any customers you represent are either (a) qualified institutional buyers
(within the meaning of Regulation 144A under the Securities Act), or (b) not a U.S. person and are outside of the United States and not acting for the account or benefit of
a U.S. person (as defined in Regulation S under the Securities Act).
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