SANDHAR

SANDHAR Growth. Motivation. Better Life Ref: STL/REG-30/BSE/NSE/2019-20/36 27th May, 2019 To, To, Department of Corporate Services, Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street, C-1, G-Block, Bandra-Kurla Complex Mumbai --400 00 l Bandra, (E), Mumbai - 400 0051 BSE Scrip Code: 541163; NSE: SANDHAR Sub: Intimation to Stock Exchange - Investor Presentation in connection with Audited Standalone and Consolidated Financial Results for the Qua1-ter and Year ended 3P1March, 2019 Dear Sir/Madam, Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the copy of Investor Presentation in connection with Audited Standalone and Consolidated Financial Results for the Quarter and Year ended 31st March, 2019. Kindly take the above on your record. Thanking you, Yours faithfully, FOR SANDHAR TECHNOLOGIES LIMITED (Arvind Joshi) Whole-Time Director, Chief Financial Officer & Company Secretary DIN: 01877905 Encl: As above Sandhar Technologies Limited Head Office: 13, Sector-44, Gu rug ram-122002, Haryana, India. Ph: +91-124-4518900 Registered Office : 8-6/20, local Shopping Complex, Safdarjung Enclave, New Delhi- 110029 Ph: +9 l. l l -40511800 C029553 Email· enquiries@sandhar.in; website• www.sandhargroup.com; CIN • U74999DL1987PL<;:Q2.9..5~ CIN: L74999DL 1 ~ti/r'L SANDHAR Growth. Motivation. Better Life • . .... .. ········································•• . .. .... •.•································· .. • ·· ·········· . .. ········································ ... ··························••"• SANDHAR TECHNOLOGIES LIMITED INVESTORS’ PRESENTATION 27th MAY 2019 Annual Financial Performance FY 18-19 Safe Harbour SANDHAR Growth. Motivation. Better Life This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sandhar Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the tire industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward- looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2 Industry Performance (Vol. in Mn) Indian Auto Sector 29.02 30.90 23.02 24.46 4.04 4.05 0.95 1.02 1.11 1.27 Total Vol. PVs CVs 3 W 2 W CVs 1.11 0.954 0.67 0.57 0.44 0.38 Total CV M&HCVs LCVs FY 18-19 FY 17-18 2 T 4 .4 6 o ta 2 3 l 2 .0 W 2 7 .1 S c 0 o o 7 .0 te r 2 3 s W h e e le M r 1 s 6 o .4 to 7 r 1 c 5 y .1 c 0 le s 0 .9 M 0 o p 0 e .8 d 8 s SANDHAR Growth. Motivation. Better Life +6.5% +6.3% •• -~ -~ I I - - Passenger Vehicles +16.1% +0.4% 4.05 4.04 2.73 2.75 1.10 1.09 I I -- 0.22 0.19 Total PV Passenger Cars Utility Vehicles Vans ■ ■ 3 Audited Financial Snapshot (fig. in Rs. Crs) SANDHAR Growth. Motivation. Better Life Consolidated Standalone FY'19 (A) FY'18 (A) GR Vs LY % FY'19 (A) FY'18 (A) GR Vs LY % 2,342 1,951 20.0% 2,043 1,689 21.0% Revenue 258 213 21.0% 228 191 19.2% EBITDA EBITDA % 11.0% 10.9% 11.1% 11.3% ¢&&) 145 97 49.9% 142 98 45.3% EBT EBT % 6.2% 5.0% 6.9% 5.8% 96 66 45.1% 95 67 41.0% PAT PAT % 4.1% 3.4% 4.6% 4.0% 15.9 12.8 24.4% 15.8 13.2 19.9% EPS (Rs/Sh) ROCE ( Pre Tax) 16.9% 15.0% 18.1% 17.3% ROE 14.2% 14.6% 14.3% 14.9% 4 Balance Sheet & Cash Flow (fig in Rs. Crs) SANDHAR Growth. Motivation. Better Life Consolidated Standalone Cosolidated Standalone Cash Flow Statement FY-19 FY-18 FY-19 FY-18 FY-19 FY-18 FY-19 FY-18 Cash Flows from Application of Funds Operating Activities Non-current assets Operating profit before Net Fixed assets 780.8 749.5 617.5 597.0 2 49.3 207.2 2 25.8 190.5 Non-current investments 30.7 18.6 67.4 49.3 working capital changes Other non-current assets 19.3 23.7 17.5 21.7 Movements in working (70.7) (1.6) (68.3) 3.3 Total Non-Current Cash generated from 178.5 205.6 157.5 193.8 Assets 830.8 791.8 702.4 668.1 operations Current assets 630.7 792.6 477.3 654.0 Net cash inflow from 126.1 188.0 106.3 176.5 Total Application of operating activities ( A ) Funds 1,461.5 1,584.4 1,179.7 1,322.1 Net cash used in investing (134.8) (187.4) (114.5) (153.7) Sources of Funds activities ( B ) Share capital 60.2 60.2 60.2 60.2 Net cash flow used in Reserves and surplus 659.4 574.1 648.5 563.4 (243.4) 247.3 (244.7) 228.3 financing activities ( C ) Shareholders' Funds 719.6 634.2 708.7 623.6 Impact on cash flow on Minority Interest 3.5 2.8 - - account of foreign 0.9 1.4 - - Long Term Secured Loans 8.4 12.8 0.6 1.0 currency translation ,. ,. ,. Net increase/(decrease) in Other Non-current liabilities 23.9 20.4 11.7 5.7 Total Long Term cash and cash (251.3) 249.3 (252.9) 251.1 liabilities 32.4 33.2 12.3 6.7 equivalents (A+B+C) Short Term Loans 259.5 208.0 113.2 74.0 Opening Cash Balance 255.0 5.7 253.5 2.4 Current liabilities & Cash and cash equivalents Provisions 446.6 706.2 345.6 617.8 3.7 255.0 0.6 253.5 at the end of the year Total Sources of Funds 1,461.5 1,584.4 1,179.7 1,322.1 5 How we managed ….……Consolidated Working Capital Changes Cash Generated from Rs. 65 Crs Operations Rs. 249.27 Crs Cash Used in Capex Investment Rs. 129 Crs Borrowings Rs. 51.5 Crs Cash Used in JV Investments Rs. 12.8 Crs Cash Used in Interest, Tax Other Receipts & Dividend Rs. 4.06 Crs Rs. 90 Crs 6 srC 503.sR -swolfnI latoT Total Outflows- Rs. 296.8 Crs SANDHAR Growth. Motivation. Better Life Excluding IPO Proceeds & its Utilisation Standalone Quarterly Trend (fig in Rs Crs) 7.34 6.15 5.54 1.05 0.05 1.06 0.45 5.36 70 12.2% 12.4% 14% 11.1% 11.1% 11.0% 11.2% 10.9% 60 12% 10.1% 50 10% 40 8% 30 6% 20 4% 10 2% 0 0% Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19 EBITDA EBITDA % 1.593 3.364 2.414 6.114 4.394 6.635 6.494 4.215 SANDHAR Growth. Motivation. Better Life 600 25% 20% 17% 20% 500 15% 400 8% 9% 4% 10% 300 5% -1% -8% 0% 200 -11% -5% 100 -10% 0 - -15% Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19 Revenue Growth - 7 Consolidated Quarterly Trend (fig in Rs Crs) 5.454 3.905 9.664 6.515 3.675 1.806 3.875 1.375 700 15% 12% 12% 10% 600 10% 500 6% 5% 400 3% 300 -1% 0% 200 -5% -5% 100 -8% 0 -10% Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19 Revenue Growth 5.94 4.75 5.15 6.45 7.65 4.76 2.16 5.27 SANDHAR Growth. Motivation. Better Life - 80 12.7% 14% 70 10.9% 11.3% 11.0% 10.6% 11.1% 10.6% 12% 9.8% 60 10% 50 8% 40 6% 30 4% 20 10 2% 0 0% - Q1'FY 18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'19 Q2 FY'19 Q3 FY'19 Q4 FY'19 EBITDA EBITDA % 8 Where are we……………….. Segmentwise Revenue 5.50% 57.47% 20.61% 14.47% 1.96% 2 & 3 Wheelers PVs CVs OHVs Others Productwise Revenue Pie 21% 10% 11% 14% 17% 15% 13% Locking Systems Vision Systems Sheet Metal OHV ADC Assemblies Others %0.02 %5.6 %5.61 %6.6 %6.5 %4.0 %2.21 %1.61 %4.07 AN SANDHAR Growth. Motivation. Better Life STL Rev Sandhar vs. Industry OEM Vol OEM Gr Customer (Rs in STL Gr % -~ (Mn) % Crs) 7.8 637 3.1% 10.8% Hero -- I . 1. TVS~ 3.8 532 11.6% 27.0% ■ I ~ 0.2 161 7.4% 1.5% Overall Growth 2 & 3 Wheelers Passenger Commercial OHV HONDA Vehicles Vehicles ■ Sandhar Rev Gr % ■ Industry Vol. Gr % ~ NA 158 NA 125.3% BOSCH NA 107 NA 5.0% .. 0.8 95 0.7% 10.2% ~LD .. NA 86 NA 4.3% ~ ■ ■ ■ ■ ■ ~ NA 50 NA 26.4% Autoliv TATA HITACHI NA 60 NA 59.0% -·~~~l:ill!· - GD 0.7 29 14.5% 3.6% :'l".I\ 5.9 23 -3.6% 14.4% ■ ■ ■ ■ ■ ■ ■ 9 Where are we…….. WOS- Financials SANDHAR Growth. Motivation. Better Life Tota-l Income- (Rs. Crs) 242.9 219.1 FY'19 A FY'18 A 42.3 - 30.9 16.4 14.9 8.8 8.2 STB STM STP STPL EBITDA (Rs Crs) EBT (Rs. Crs) 5.2 21.4 4.7 4.1 17.5 3.1 0.2 - - 0.0 0.1 I I 5.4 4.2 __ 4.8 I I ■ -0.8 0.2 0.3 STB STM STP STPL -2.7 STB STM STP STPL 10 Where to cover……….. ( all fig in Rs Crs) SANDHAR Growth. Motivation. Better Life - - Revenue FY'19 A Revenue FY'18 A ■ ■ Gross Profit FY'19 A Gross Profit FY'18 A 76.2 8.9 9.1 54.6 38.3 2.8 2.7 - - T 4.6 6.5 Jaipur Oragadam Hosur 0.7 -1.3 -0.3 Jaipur Oragadam Hosur Jaipur Oragadam Hosur ._____ _____________I l ~ - ~ I I ~ -  Investments : 33.3 Crs  Investments : 52.27Crs Investments : 69.58 Crs  EBITDA : (4.29) Crs Vs (2.5) CrsFY 18  EBITDA : 2.86 Crs Vs 0.6 CrsFY18 EBITDA : 2.5 Crs Vs (0.5) CrsFY18  EBT : (8.21 Crs) Vs (3.95) Crs FY18  EBT : (1.07) Crs Vs (0.40) CrsFY18 EBT : (3.44) Crs Vs (0.9) CrsFY18 .•. ......................................................................................................................................................• . . . • EBITDA impact : 1.1 Crs ( Margin impacted by 0.05 % ) ; EBT impact : -12.72 Crs ( Margin impacted by 0.62%) , .......................................................................................................................................... . ■■■■ 11 Financial Ratios- Standalone 39 38.2 38 36.4 37 36 35.3 35 34.22 34 33 32 FY16 FY17 FY 18 FY19 syaD fO oN Inventory Holding Period syaD fo .oN 4 3 3 3 3 3 3 3 0 9 8 7 6 5 4 3 3 6 F Y .4 1 6 R e c e iv a b le 3 F Y s c o 5 .4 1 7 lle c tio n p e F r io d 3 7 .0 Y 1 8 3 F 9 Y .3 1 5 9 66 65.2 65 64.4 63.85 64 63 62 61.4 61 60 59 FY16 FY17 FY 18 FY19 12 syaD fo .oN SANDHAR Growth. Motivation. Better Life Creditors holding period Debt-Equity Ratio 1.14 0.86 0.53 0.16 FY16 FY17 FY 18 FY19 STL- Working capital Utilization 160 12% 140 9.53% 8.91% 10% 8.88% 120 8.46% 8.83% 8.96% 9.02% 8% 100 8.62% 80 86.52 6% 83.30 82.65 71.09 60 4% 40 2% 20 83.26 99.50 142.33 129.22 0 0% Q1 Q2 Q3 Q4^ 3 M MCLR (YBL) Q1 Q2 Q3 Q4 FY 2018-19 8.97% 9.25% 9.53% 9.45% FY 2017-18 8.47% 8.38% 8.27% 8.60% 13 )srC nI( latipaC gnikrow egarevA etaR tseretnI egarevA SANDHAR Growth. Motivation. Better Life - - ....... 2018-19 2017-18 2017-18 2018-19 SANDHAR Growth. Motivation. Better Life T H A N K Y O U Sandhar Technologies Limited CIN: L74999DL1987PLC029553 Investor Relations: Ms. Charu Khatri Email: investors@sandhar.in