PPAP

PPAP Automotive Limited CIN: L74899DL1995PLC073281 B-206A, Phase-II, Noida - 201305, Uttar Pradesh, India Tel: +91-120-2462552/53, Fax: +91-120-2461371 Email : info@ppapco.com, Website : www.ppapco.in oth February, 2020 The Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Mu Bandra (E),Mumbai - 400051 ~rip Code: 532934 Symbol: PPAP Sub: Analysts and Investors Presentation pursuant to Regulation 30(6) of the SEBI {Listing Obligations and Disclosure Requirements) Regulations. 2015. Dear Sir, Pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Analysts and Investors presentation for the Financial Results of quarter and nine months ended 31st December, 2019. Kindly take the same on record. Thanking you, Yours truly, For PPAP Automotive Limited So~~ Company Secretary Investor Presentation Q3FY20 & 9MFY20 FEBRUARY 2020 PPAP Automotive Limited TAKING CHALLENGES, TOGETHER STANDALONE FINANCIAL HIGHLIGHTS (9MFY20) ………. ………. Revenue from Operations (₹ Cr.) 311.84 256.48 5.97 • Revenue from Operations at ₹ 256.48 cr and Part Sales at ₹ 245.32 cr 11.00 1.57 • PAT at ₹ 13.61 cr, 5.3% of Revenue 9.59 • EBITDA at ₹36.71 cr, 14.3% of Revenue • EPS stood at ₹ 9.72 294.87 • Interim Dividend ₹ 1.00 per share 245.32 9MFY19 9MFY20 PARTS TOOLS OTHERS EPS Profit after Tax EBIDTA 8.5% 19.2% 5.3% 14.3% 18.83 9.72 26.36 13.61 59.99 36.71 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 PAT ₹ Cr % EBITDA ₹ Cr % STANDALONE EPS PERIOD₹ 1 STANDALONE QUARTERLY FINANCIAL HIGHLIGHTS (Q3FY20) ………. ………. Revenue from Operations 93.52 85.29 79.14 0.66 2.17 0.50 0.28 4.28 • Revenue from Operations at ₹ 79.14 cr and Part Sales at ₹ 76.38 cr 2.48 • PAT at ₹ 3.52 cr, 4.5% of Revenue • EBITDA at ₹10.62 cr, 13.4% of Revenue • EPS stood at ₹ 2.52 90.69 80.51 76.38 ₹ Q3FY19 Q2FY20 Q3FY20 C r . Parts Tools Others EBITDA EPS Profit after Tax 6.4% 4.24 17.1% 5.1% 3.09 4.5% 13.4% 2.52 12.7% 28.89 16.48 14.76 15.96 10.85 10.62 5.94 4.32 3.52 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 EPS TTM ₹ EPS ₹ PAT % EBITDA % 2 OUR EVOLUTION ………. ………. Our Mission “TO BE A GLOBAL COMPANY WITH AN INSPIRING WORK CULTURE FOR SERVING CUSTOMERS AND THE SOCIETY BY EXCEEDING THE EXPECTATIONS OF ALL ITS STAKEHOLDERS” Certification of ISO 50001 Established Plant - V at Established Plant - IV Vallam Vadagal (Tamil Added Tata Motors as customer Certification of TS 16949 and Nadu) (Pathredi, Rajasthan) Incorporation of Technological tie up with Tokai Technological tie up with Nissen ISO 14001 Established Plant - VI partnership firm Kogyo Co. Ltd., Japan Chemitec Corporation, Japan Established Plant - II (Noida) (Viramgam, Gujarat) Established Plant - VII (Viramgam, Gujarat) 1989 2002, 2003 2006, 2007 2012, 2014 2018 1978 1985 1996 2008, 2010 2015, 2016 2019 2004, 2005 Start of the Automotive Technological tie up with Tokai Seiki Implemented SAP Established Plant - I (Noida) Added General Motors as Listed on BSE / NSE Business Co., Japan customer Great place to work Added Honda Cars as Established Plant - III (Surajpur) Added Maruti Suzuki as Added Isuzu Motors as customer certified customer Added Toyota as customer Added Mahindra & Mahindra as customer Entered into LCV business - SML Certification of ISO/IEC Certification of OHSAS 18001 customer Isuzu 27001 Added Renault Nissan and Ford Entered into two-wheeler Start of after market India as customer business - Suzuki Motorcycle business Start of electric vehicle components business 3 WHO WE ARE ………. ………. • Over 30 years of experience in Automotive Industry Rich Legacy • Identified as India’s leading manufacturer of Automotive Sealing Systems, Interior and Exterior Injection parts • Integrated operations from Print to Build Market Leadership • One stop shop for full range of Automotive Sealing Systems • Best in class Injection Molding Machines from 60 to 2500 tons • State-of-the-art manufacturing facilities located at Noida (U.P.), Surajpur (U.P.), Pathredi (Rajasthan), Excellent Infrastructure Vallam Vadagal (Tamil Nadu) and Viramgam (Gujarat) • Plants are ITATF 16949, ISO 14001, OHSAS 18001, ISO 50001and ISO/IEC 27001 certified • Strong technology alliances with Japanese companies since 1989 Global Technology • Tokai Group for Automotive Sealing System (Plastic) and Toolings, Joint venture with Tokai Group for Partners Automotive Sealing System (EPDM Rubber and TPV) • Nissen Chemitec Corp. for Injection Molded products • Associated with Global OEM Manufacturers including Maruti Suzuki & Suzuki Motors, Honda Cars, Strong Customer Base Toyota Kirloskar, Renault, Nissan, Volkswagen, MG Motors, Tata, Hyundai, SML Isuzu, Isuzu Motors, Mahindra and Mahindra, Suzuki Motorcycles 4 KEY MANAGEMENT ………. ………. Mr. Ajay Kumar Jain, Chairman & Managing Director Bachelor of Commerce from Shri Ram College of Commerce, Delhi University Associated with the Company since inception with experience of over 40 years in polymer processing industry and over 30 years in the automotive industry President of Toyota Kirloskar Supplier Association Mr. Abhishek Jain, CEO & Managing Director Bachelor of Science in Industrial Engineering from Purdue University, USA Responsible for conducting the operations of the Business Work experience of over 15 years Chairman North region of Honda Suppliers Club Member of Pillar IV of Automotive Component Manufacturers Association of India Mr. Anurag Saxena, Chief Financial Officer Member of ICAI and ICMAI Work experience of over 20 years Has previously worked with Subros Limited, Minda Industries Limited, Jamna Auto Industries Limited 5 TECHNOLOGY PARTNERS ………. ………. NISSEN CHEMITEC CORPORATION, JAPAN TOKAI KOGYO CO. LTD., JAPAN Established: 1951 Established: 1947 Global Presence: USA, Thailand, Indonesia, Global Presence: USA, Thailand, Indonesia, China, Singapore Mexico, Vietnam AUTOMOTIVE EXTERIOR & SEALING PRODUCTS AUTOMOTIVE INTERIOR PRODUCTS TECHNOLOGY PARTNERSHIP - PPAP SINCE 1989 TECHNOLOGY PARTNERSHIP - PPAP SINCE 2007 JOINT VENTURE COMPANY - PPAP TOKAI INDIA RUBBER PVT. LTD. 6 CORE STRENGTHS ………. ………. Leadership Position Strong Customer Base Strong R&D Facilities India’s leading manufacturer Leading OEM manufacturers in Capability from Design to Print of Automotive Sealing Systems Indian Market are customers State-of-the-art Access to Global Technology Healthy Financials manufacturing facilities Relationship with Cost sensitive Culture Focus on Kaizen towards Japanese Technology Partners Technology and Operations 7 STRATEGIC GROWTH LEVERS ………. ………. •Improve OEE (Overall Equipment Efficiency) Optimum utilization of Assets •International benchmarking •Our mantra “Every Paisa Counts” •Focus on cost optimization & operating leverage Continuous Levers of Improvement Optimization sustainable of of Operational Investments development Efficiency •Timing, efficiency and best value proposition review Expansion of customer •Extend leadership position across OEMs base •Expand product base •Establish new product lines 8 PRODUCT ROADMAP – OUR COMPREHENSIVE PRODUCT OFFERING ………. ………. ROOF MOULDING GLASS RUN CHANNEL - PRODUCTS MADE DRAIN HOSE ASSEMBLY BY PTI (JV) INNER BELT BACK DOOR / TRUNK MOULDING WINDSHIELD SEAL - PRODUCTS MADE BY PTI (JV) TRIM DOOR OPENING - PRODUCTS MADE BY PTI (JV) AIR SPOILER OUTER BELT BLACK / BRIGHT DOOR OPENING SEAL - PRODUCTS MADE BY PTI (JV) 9 PRODUCT ROADMAP – OUR COMPREHENSIVE PRODUCT OFFERING ………. ………. UNDER HOOD PRODUCTS FR-PILLAR CTR-PILLAR RR-PILLAR PARTITION REAR TRAY LINING RR PANEL SIDE PROTECTORS TRUNK LINING IN CABIN PRODUCTS FENDER INNER DOOR LINING SPLASH GUARD 10 PRODUCT ROADMAP – EXTRUSION & INJECTION ………. ………. Extrusion Injection 11 PAN INDIA PRESENCE ………. 7 4 2 ………. Plants Locations JV Plants EXTRUSION FACILITIES Noida, Uttar Pradesh (Plant I & II) Vallam Vadagal, Tamil Nadu (Plant V) Viramgam, Gujarat (Plant VII) 3 1 INJECTION FACILITIES 1 1 Surajpur, Uttar Pradesh (Plant III) Pathredi, Rajasthan (Plant IV) 1 Viramgam, Gujarat 2 (Plant VI) RUBBER EXTRUSION FACILITIES (Joint Venture Company) Surajpur, Uttar Pradesh (Plant I) Viramgam, Gujarat (Plant II) AFTER MARKET WAREHOUSE Delhi 1 ELECTRIC VEHICLE COMPONENTS Noida, Uttar Pradesh 12 CUSTOMER BASE & EXPORT COUNTRIES ………. ………. RENAULT TS TECH Co.,Ltd. DAIMLER TOYOTA BOSHOKU S T R O P X E D K USA C JAPAN Brazil Mexico Venezuela Thailand United Kingdom South Africa Argentina 13 CUSTOMER BASE OUR PRESENCE IN NEW MODELS ………. ………. CUSTOMER CONTRIBUTION TWO WHEELER, OTHERS , 5.5% HYUNDAI, 0.5% 1.5% MSIL, 41.5% TATA, 2.3% Renault Triber TKML, 4.1% Tata Harrier Nissan Kicks MG Hector NISSAN , 8.2% Hyundai Verna Hyundai Creta Vitara Brezza S.Presso Glanza All New Ertiga HCIL, 21.8% SMG, 14.7% Suzuki Motorcycle Suzuki_Burgman Honda CB shine SP Suzuki Access Honda Activa Gixxer 250 14 COMPETITIVE EDGE – STATE OF THE ART MANUFACTURING FACILITY ………. ………. Plastic Rubber Injection Commercial PPAP’s Engineering Extrusion Extrusion Molding Tool Room Expertise PVC / TPO / PP MATERIAL PP / ABS / POM Size upto 1.2 meter EPDM & TPV MATERIAL 4 Locations; 11 Extrusion Lines 3 Locations: 1 Location 2 Locations: (1 Extrusion line for trials) 41 Machines 2 EPDM extrusion lines,1 TPV extrusion Line Range: 60 Tons – 2,500 Tons Bending technology, Hot runner molds, Welding technology, Hard, Soft and Foam co- Electric, Gas assist, extrusion technology Chrome SUS extrusion, Hybrid, Hot runner with sequential gate valve Notching technology Gas assist, Multi cavity mold Sequential gate valve, Hot runner technology Design Tool Manufacturing Validation JV Company – PPAP Tokai India Rubber Pvt. Ltd. 15 WHOLLY OWNED SUBSIDIARIES ………. ………. • Date of becoming WOS - 04/10/2019 • Paid up share Capital - INR 50,00,000 Elpis Components Distributors Pvt. Ltd. • Product line - Trading and distribution of components and automotive accessories in after sales market or secondary market through dealership network • Location - Delhi • Date of becoming WOS - 10/12/2019 • Paid up share Capital - INR 1,80,00,000 PPAP Automotive Technology Pvt. Ltd. • Product line - Development of electric vehicle components • Location - Noida 16 CUSTOMER APPRECIATION - ACCOLADES ………. ………. ACCOLADES PRODUCTIVITY (SME)- THE MACHINIST SUPER SHOPFLOOR AWARDS 2018 ZERO DEFECT SUPPLIES - TOYOTA KIRLOSKAR ACHIEVING TARGETS IN QUALITY - TOYOTA KIRLOSKAR APPRECIATION AWARD - HYUNDAI MOTOR INDIA LIMITED FIRST RUNNER UP AWARD IN NATIONAL LEVEL QUALITY CIRCLE COMPETITION - HONDA CARS INTERIOR FOR PANEL R/L ORNAMENT - ECONOMIC TIMES POLYMERS AWARDS 2019 APPRECIATION AWARD FOR PARTNERSHIP DAY- HYUNDAI MOTOR INDIA LIMITED SUPPLIER OF THE YEAR GOLD AWARD - TOYOTA KIRLOSKAR QUALITY TARGET- TOYOTA KIRLOSKAR SILVER AWARD FOR DELIVERY - HONDA ACCESS DELIVERY PERFORMANCE 2018 - ASAHI INDIA GLASS APPRECIATION FOR CONTINUED SUPPORT 2018 - ASAHI INDIA GLASS ZERO PPM AWARD - TOYOTA KIRLOSKAR TARGET IN DELIVERY - TOYOTA KIRLOSKAR 17 QUARTERLY PERFORMANCE ………. ………. 120.00 99.13 100.00 92.05 93.52 17.4% 17.1% 16.6% 85.29 79.14 80.00 13.4% • Revenue from Operations stood at ₹ 79.14 cr 12.7% . in Q3FY20 v/s ₹ 93.52 cr in Q3FY19 r C 60.00 ₹ 11.1% 10.4% 9.8% 40.00 5.5% 7.1% 6.4% 6.3% 20.00 5.4% 5.1% 4.5% 0.00 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 *REVENUE FROM OPERATIONS EBITDA MARGIN EBIT MARGIN PAT MARGIN 19 MAJOR EXPENSES (₹ Cr.) ………. ………. Employee Benefits Materials 19.8% 19.5% 19.2% 52.8% 52.9% 18.5% 18.3% 51.3% 52.0% 51.7% 47.99 51.50 47.61 45.02 41.85 17.28 18.15 17.66 16.91 15.43 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Value % to Revenue Value % to Revenue Other Expenses Depreciation 14.7% 14.2% 13.1% 12.5% 12.4% 8.2% 7.5% 6.9% 7.0% 6.6% 12.29 12.26 11.54 12.51 11.23 6.46 6.57 6.44 6.38 6.46 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Value % to Revenue Value % to Revenue 20 INTEREST & EARNINGS (₹ Cr.) ………. ………. INTEREST EBITDA 17.4% 17.1% 16.6% 13.4% 12.7% 0.9% 0.9% 0.9% 0.8% 0.7% 0.84 0.85 0.65 0.65 0.68 15.96 17.21 15.24 10.85 10.62 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Value % to Revenue Value % to Revenue EBIT PAT 7.1% 11.1% 10.4% 6.4% 6.3% 9.8% 5.1% 4.5% 5.4% 5.5% 9.74 10.98 9.01 4.57 4.35 5.94 7.06 5.76 4.32 3.52 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Value % to Revenue Value % to Revenue 21 EPS, BOOK VALUE, MARKET CAPITALIZATION (BSE) ………. ………. EPS (₹) Net Worth 216.29 215.26 214.98 210.79 5.04 202.97 4.24 4.11 3.09 2.52 284.15 295.11 301.36 300.97 302.81 28.89 23.87 21.66 16.48 14.76 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 EPS TTM ₹ EPS ₹ Net Worth (₹ Cr.) BVPS ₹ Market Capitalisation (BSE) 381.65 286.70 224.55 204.05 192.45 534.31 401.38 314.37 269.43 285.67 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Market Cap (₹ Cr.) Share Price ₹ 22 KEY RATIOS ………. ………. Net Worth Working Capital 76.11 13.7% 67.78 12.2% 11.3% 55.22 53.65 9.6% 49.03 8.4% 7.7% 5.6% 5.4% 5.7% 4.7% 284.15 295.11 301.36 300.97 302.81 50.24 62.18 54.12 63.35 66.01 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Net Worth (₹ Cr.) RONW ROCE Working Capital (₹ Cr.) No of Days Loans 5.52 4.32 3.96 3.84 3.61 26.01 39.39 25.13 24.60 18.56 0.09 0.14 0.08 0.06 0.08 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 LOANS (₹ Cr.) D/E RATIO DSCR 23 CONSOLIDATE SUMMARY ………. ………. EPS (₹) 4.50 4.00 3.50 100.00 3.00 310.00 2.50 5.28 90.00 2.00 26.37 1.50 270.00 1.00 80.00 0.50 4.03 3.91 2.88 1.80 230.00 - Q3FY19 Q2FY20 Q3FY20 70.00 190.00 EPS (₹) 60.00 2.52 150.00 12.35 20.00 16.00 50.00 110.00 12.00 40.00 70.00 8.00 93.52 85.29 78.64 311.85 255.98 4.00 30.00 30.00 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 18.84 8.82 - 9MFY19 9MFY20 REVENUE FROM OPERATIONS (₹ Cr.) PAT REVENUE FROM OPERATIONS (₹ Cr.) PAT 24 FINANCIAL PERFORMANCE SNAPSHOT (FY2016-2019) ( ₹ Cr.) ………. ………. Revenue from Operations 397.62 410.98 318.50 302.75 345.01 EBITDA 2.65 6.82 21.3% 15.54 4.16 18.8% 39.86 19.3% 17.2% 2.33 30.44 7.81 388.62 355.12 310.41 292.61 52.06 66.61 84.88 77.20 FY 2016 FY 2017 FY 2018 FY 2019 FY 2016 FY 2017 FY 2018 FY 2019 PAT Part Sales Tool Sales Others EBITDA EBITDA Margin EPS (₹) 26.72 23.87 17.90 9.4% 8.1% 10.91 7.3% 5.0% 4.50 4.50 3.00 2.00 15.27 25.05 37.41 33.42 FY 2016 FY 2017 FY 2018 FY 2019 FY 2016 FY 2017 FY 2018 FY 2019 PAT PAT Margin EPS ₹ Dividend 25 FINANCIAL PERFORMANCE SNAPSHOT (FY2016-2019) (₹ Cr.) ………. ………. Fixed Assets (Gross Block) 224.27 272.12 313.34 195.53 Working Capital 2.3 65.48 55.22 11.83 12.10 51.07 3.18 50.19 10.48 0.45 8.50 7.68 62.18 298.94 55.64 54.31 249.81 47.44 212.59 187.4 FY 2016 FY 2017 FY 2018 FY 2019 FY 2016 FY 2017 FY 2018 FY 2019 Tangible Assets Intangible Assets CWIP Debt Working Capital No. of Days 69.95 Networth 20.5% 51.95 4.52 16.4% 3.68 15.3% 13.9% 29.6 2.75 11.3% 10.8% 10.5% 24.60 2.10 7.3% 0.22 0.32 0.11 0.08 210.43 238.55 269.71 295.11 FY 2016 FY 2017 FY 2018 FY 2019 FY 2016 FY 2017 FY 2018 FY 2019 Debt Debt Equity Ratio Debt Service Coverage Ratio Net Worth RONW ROCE 26 CONSOLIDATED FINANCIAL SNAPSHOT (FY2016-2019) (₹ Cr.) ………. ………. PAT 9.9% 8.1% 8.2% 4.4% 14.02 27.96 39.31 33.74 FY 2016 FY 2017 FY 2018 FY 2019 PAT PAT Margin 721.00 620 Market Capitalization (BSE) 185.00 122.10 235.6 229.57 278.56 89 218.40 321.37 735.07 401.38 FY 2016 FY 2017 FY 2018 FY 2019 Market Capitalization 52 W Low ₹ 52 W High ₹ 27 SHAREHOLDING PATTERN AS ON 31ST DECEMBER, 2019 ………. ………. 0.3% 2.4% 1.6% Promoter 9.3% Individual Bodies Corporation 22.2% Foreign Corporation 64.2% Foreign Portfolio Investor (Corporate) Others MARKET CAPITALIZATION (BSE) ₹ 285.67 Cr. 28 SAFE HARBOR ………. ………. Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. PPAP Automotive Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 29 For further information please contact: Mrs. Sonia Bhandari PPAP Automotive Limited Ph: +91 120 2462552 / 53 Email: investorservice@ppapco.com THANK YOU Mr. Gaurav Girdhar Concept Investor Relations Ph: +91 7798232425, +91 022 40558934 Email: gaurav.g@conceptpr.com