#1Tube Investments of India Limited Investor Presentation May 2019 INDIA murugappa#2Index murugappȧ Table of Contents Page No Corporate Overview Company Businesses • Engineering Cycles and Accessories Metal formed products. Gears and Gear Products - Shanthi Gears Limited 4 13 25 37 56 3236 2#3Murugappa Group and Philosophy Net Sales FY 2018-19 Others 2% Chola MS CIFCL 19% CUMI 7% EID Parry 9% 12% Coromande 136% EBITDA FY 2018-19 Others 5% Chola MS 6% CUMI 9% murugappa Company Name Chola Enter a better life INDIA TII 15% Market Capitalisation INR 2,27,096 mn (USD$ 3,283mn) INR 71,931mn (USD$ 1040mn) CFHL INR 91,294 mn (USD$ 1,320 mn) Coromandel INR 148,458 mn (USD$ 2,146 mn) PARRYS INR 36,208 mn (USD$ 523 mn) CUMI INR 77,619 mn (USD$ 1122 mn) Chola MS Unlisted GENERAL INSURANCE Description Cholamandalam Investment and Finance Company Limited is a Non Banking Finance Company and one of the leading financial provider for vehicle finance, business finance, home loans stock broking & distribution of financial products Tube Investments of India Limited offers wide range of engineering products such as Steel Tubes, Chains, car door frames, etc. apart from Fitness equipment and Cycles Cholamandalam Financial Holdings Limited holds investments in financial services business Coromandel International Limited is the leading phosphatic fertilizer company in India EID Parry (India) Limited offers wide range of agro products such as sugar, microalgal health supplements and bio products Carborandum Universal Limited is a pioneer in coated and bonded abrasives, super refractories, electro mineral and industrial ceramics. The Company currently has presence in Australia, South Africa, Russia, Canada and Middle East Cholamandalam MS General Insurance Company Limited is a JV of Murugappa Group with Mitsui Sumitomo Insurance Group of Japan Note: Market data as on 29th Mar 2019. Source: NSE Sensex and Conversion Rate of 1USD = Rs.69.17 as on 29th Mar 2019 Source: RBI CIFCL 36% EID Parry 4% Coromandel 29% TII 12% PARRY AGRO Parry infra PARRY MMorgan POIA KADAMANE COROMANOR ENGINEERING Ambadi sedis Shanthi Gears The fundamental principle of economic activity is that no man you transact with will lose; then you shall not. 3 - Arthashastra#4Corporate Overview Manufacturing Businesses • • Engineering Segment (Tubes, Value Added Cold Rolled Strips, & Tubular Components) Cycles and Accessories (Bicycles & Fitness Products) • Great Cycles (Private) Limited and Creative Cycles (Private) Limited are two Srilankan subsidiaries acquired to strengthen Particulars Key Financials - TII Standalone Revenue from Operations (Net) PBIT (Before Exceptional Item) murugappa Rs. Cr. 17-18 18-19 4,571 5,286 274 423 PBT (Before Exceptional Item) PAT 218 371 136 244 sourcing Key Financials - TII Consolidated Metal Formed Products (Chains. for Automobile & Industrial sector applications, Doorframe & Channels for Passenger Cars) Particulars 17-18 18-19 Revenue from Operations (Net) 5,000 5,775 PBIT (Before Exceptional Item) 276 427 PBT (Before Exceptional Item) 217 375 PAT 156 251 • Gears and Gears Products (Investment in Shanthi Gears Limited - Industrial Gears) . • 16 Manufacturing plants and Suppliers to all major automotive OEMs or Tier 2/3 Suppliers 4#5TII (Standalone) Businesses Engineering Cycles and Accessories TESTED TRUSTED RESPECTED murugappa Metal Formed Products PRECISION VALUE ADDED SHEET METAL FORMED COMPONENTS BSA ASTEALES POWER TRANSMISSION CHAINS AND FINE BLANKED COMPONENTS ERW & CDW Tubes, Large Diameter Tubes, Value Added Cold Rolled Strips and Tubular Components Bicycles, fitness products and accessories Chains for Automobile sector and Industrial applications, Doorframes and Channels for Passenger Cars Largest Supplier of Precision Steel Tubes (CDW) Our Brands command a leadership position in India Leader in Chains and Fine blanked components Preferred supplier for roll-formed door frames сл 5#6Business Highlights 2018-19 murugappa Revenue grown by 16% margin PBT before exceptional items at Rs.371 Cr., grown by 70%. PBT improved to 7.1% from 5.0% ROCE stands at 21% as against 14% in the PY • Free cash flow of Rs. 208 Cr. • Net debt reduction by Rs.173 Cr., from Rs.660 Cr to Rs.487 Cr. Debt equity ratio has come down to 0.4 from 0.6 in the PY. Debt/EBITDA has come down to 1.0 from 2.0 in the PY Dividend from Shanthi Gears received for Rs.29 Cr., (Rs.5 per Share) TII has tendered the Shanthi Gears shares under the buy back offer of SGL and received the proceeds of Rs.45 Cr. in Apr-19 - TI New Businesses identified Macho TMT Bars and Truck Body Building 6#7Improvement Initiatives 2018-19 murugappa 1 LOGISTICS COSTS OPTIMIZATION 2 3 4 5 6 SOURCING HIGHER REALIZATION FOR SCRAP REVENUE ENHANCEMENT FINANCE RELATED COST OPTIMIZATION FIXED COST OPTIMIZATION 7 QUALITY & PRODUCTIVITY IMPROVEMENT 8 9 10 11 WORKING CAPITAL IMPROVEMENT CAPEX WITH FASTER RETURNS PRUDENT INVESTMENTS CHANGE IN PRODUCTION SYSTEM G 7#8TII Shareholding Pattern Shareholding Pattern - 31-03-2019 Others 21.49% DII 20.53% FII 10.09% Promoter & Promoter Group 47.89% murugappa G 8#9Key Financials 2018-19 G murugappȧ Rs. Cr. Standalone Consolidated Particulars Net Sales Growth % 17-18 18-19 17-18 18-19 4,335 4,983 4,760 5,464 15% 15% EBITDA 348 496 384 545 % to Sales 8% 10% 8% 10% PBIT Before Exceptional Item 274 423 276 427 % to Sales 6% 8% 6% 8% Exceptional Items -25 -9 -3 3 PBIT After Exceptional Item 249 414 272 430 % to Sales 6% 8% 6% 8% PBT before exceptional items 218 371 217 375 PBT after exceptional items 193 362 214 378 % to Sales 4% 7% 4% 7% 6#10Performance Trends Net Sales 4,983 4,335 3,925 ד PBT (before exceptional) murugappȧ Rs. Cr. 218 202 371 16-17 17-18 18-19 16-17 17-18 18-19 ROCE 21.5% 14.1% 14.3% Free Cash Flow 109 95 208 16-17 17-18 18-19 16-17 17-18 18-19 10#11Performance Trends Earnings Per Share - Basic (FV - Re.1) 13.02 8.48 7.28 152 ד Capex 216 murugappȧ Rs. Cr. 172 16-17 17-18 18-19 16-17 17-18 18-19 0.6 Net Debt Equity 0.5 0.3 1.8 Net Debt/EBITDA 1.9 1.0 16-17 17-18 18-19 16-17 17-18 18-19 11#12Businesses Engineering Cycles and Accessories TESTED TRUSTEPPECTED Metal Formed Products PRECISION VALUE ADDED SHEET METAL FORMED COMPONENTS POWER TRANSMISSION CHAINS AND FINE BLANKED COMPONENTS murugappȧ BSA HERCULES BSA & Hercules bicycles are proud to be your chosen Superbranch BSAR SANONG SA LADYBIRD SA MACH ROROSTERS ROADSTERS www.satercules.com ROPOSTERS ROOSTERS RYDERS o Gears and Gear Products 12#13Engineering (Tubes and Strips) murugappa Leader in CDW tubes for the Automotive industry 13#14Two Wheeler Application Shock Absorber Tube Seat Assembly Handle Bar Tube murugappa G Front Fork Tube Swing Arm Main Frame Two-Wheeler production in India has grown at 6% in 2018-19 14 14#15Four Wheeler Application Anti-roll bar Gas-filled strut Cross-member Drive shaft Side impact protection Camshaft Axle shaft murugappa Belt tensioner Instrument panel frame Steering column Power steering Corrugated tube (steering column) system 39999 Transverse control arm Engine mount Vibration damper Balancing shaft Engine Shock absorber Passenger Vehicle production in India remained flat in 2018-19 (rubberised metal) 15#16Off Road Vehicle Application Hydraulic -Cylinder Rollover Protection Structure (ROPS) Rollover Protection Structure (ROPS) murugappa 7 King Pin Front Axle Hollow Drive Shaft 16#17Business Drivers ☐ Precision Steel Tubes (CDW) largely used in Automobile applications of Two Wheelers/ Passenger Cars and Commercial Vehicles for applications like Front Forks, Side impact beams, steering columns etc. CDW tubes also used in Hydraulic Cylinders and Off-Road Vehicles Range and adherence to tolerance are the key factors Variety of products due to new models introduced by all auto makers Customer preference to Value added products murugappa Business Mix 2018-19 Non Auto, 25% Auto, 75% Gear Shift Lever Rear Axle for Commercial Vehicle Cost competitiveness efficiencies through internal Steering shafts 17#18Key Success Factors CDW Tube Multi Location Gearing for Non-Auto • Market leader in High Quality & Safety critical CDW Tubes for 2W and 4W applications Only manufacturer with plants at 5 different locations closer to customers Mohe murugappa • Large-dia plant provides tubes for hydraulic cylinders, Off-Road applications, import substitution Pines WORD Regional Offic • CF Agent CRSS Import substitution program is continuously on Value Added Products • Tubular components including Steering column, side impact beam etc. 18#19Major OEM's Serviced MS MARUTI SUZUKI HYUNDAI TATA JOHN DEERE F Mahindra 2 Wheelers NISSAN GM LEYLAND DEERE ΤΟΥΟΤΑ H HONDA P PIAGGIO PIAGGIO VEHICLES PVT. LTD. ROYAL ENFIELD Cummins COMSTAR murugappa 7 Ashok Leyland D RENAULT NISSAN Sona JOINT VENTURE COMPANY W GM TVS Mahindra SWARAJ mazda TAFE CNH קר THERMAX EASTERN Case New Holland Sabros BorgWarner श्रीs B Lucas-TVS Limited BOSCH SODECIA THE FREE ENERGY COMPANY PARRYS KING CRAFT DEWAS HYDROQUIP PVT. LTD. VISOKA SS Rane Thermal Energy systems TIM Forming Salcidha Sunar E and Cng Co. Pvt L INDIA VIRTEX ENGINEERS IN THAI SUMMIT HEEL RECL Rajshree Sugars & Chemicals Limited endurance IFB EE AAB LUK Valeo LUK India Amalgamations Group AQUA GROUP 19#20Awards and Recognitions SHOWA Global Business Partner Meeting 2018 (Thailand) Motorcycle and Hydraulic Components Operations 28th March 2018 abhumi Gr S Novotel B Kok Suvarn Ballroom umi Airport Hotel 28 03.2018 15:12 Strategic Global Supplier award from Showa BANANANANANDANN GABRIEL GABRIEL INDIA LTD ANNUAL VENDOR MEET JULY 2018 BEST SUPPLIER QUALITY AWARD FOK-HEAVY PARTS TUBE INVESTMENT OF INDIA LTD-CHENNAI ANAND murugappa Best Supplier Quality Award from Gabriel India Ltd SUZANNANNNNN M/s. Rane (Madras) Limited Chennai - 600 042. Certificate of Recognition 2017-18 This is to Certify that TUBE INVESTMENTS OF INDIA LTD has been awarded for their Date: 24 September, 2018 Rane Expanding Horizons SUPPORT IN VOLUME RAMP-UP Years President NON Best Support in Volume Ramp Up RANE (Madras) 20 20#21Awards and Recognitions SECOND PRIZE PUNJAB STATE SAFETY AWARD FOR THE YEAR 2018 AWARDED TO M/S TUBE INVESTMENTS OF INDIA LIMITED (UNIT-TUBE PRODUCTS OF INDIA), VILLAGE SANDHARSI, SUB TEHSIL GHANOUR, DISTT. PATIALA FOR LARGEST REDUCTION IN ACCIDENT FREQUENCY RATE IN LIGHT ENGINEERING INDUSTRY FOR 1 LAC TO 5 LAC MANHOURS. DIRECTORATE OF FACTORIES, PUNJAB AND PUNJAB INDUSTRIAL SAFETY COUNCIL, SAS NAGAR murugappa C G TII-TPI, Rajpura Unit has been awarded with the 2nd prize under the category of "Largest Reduction in Accident Frequency Rate in Light Engineering Industry for 1 Lac to 5 Lac Man hours” in “Punjab State Safety Awards" ceremony which was held on 11th Mar 2019. The award was presented to the Rajpura team by the dignitaries from Dept. of Labour, Punjab. 21#22murugappa Business Highlights 2018-19 Highest ever Sales of Rs.2676 Cr, registering a growth of 26% Highest ever PBIT of Rs.254 Cr., registering a growth of 45% Large Diameter plant stabilized and turned profitable during the year Maintained market share in Tubular Front Forks (TFF) and CDW during the year Achieved improvement in all key financial parameters G 22#23Key Financials murugappa Rs. Cr Particulars 17-18 18-19 Growth % Net Sales 2,131 2,676 26% EBITDA 214 308 44% % to Net Sales 10% 12% PBIT 175 254 45% % to Net Sales 8% 9% Particulars Net Fixed Assets Net Working Capital Capital Employed 31-03-2018 31-03-2019 526 530 138 157 664 687 G Capital Expenditure 141 84 23#24Key Financial Trends Net Sales 2,676 2,131 1,742 16-17 17-18 18-19 ד murugappȧ Rs. Cr. PBIT (before exceptional) 254 175 146 16-17 17-18 18-19 ROCE 36.9% 26.4% 23.2% 16-17 17-18 18-19 24 4#25Cycles and Accessories BSA HERCULES LADYBIRD LADYBIRD ROADEO murugappȧ G MACH CITY montra Pioneers in Promoting Cycling... not just cycles 25#26Industry Standard In trade sales, the share of standard bicycles is coming down over the years Government orders for standard cycles continue to flow with more welfare schemes Specials In the specials market, growth is seen in Premium cycles, the overall market has seen a decline 150% Trade Sales murugappa 100% 61% 72% 50% 39% 0% Industry 28% TII Trade market has grown overall only at 3% Standards Specials Trade Market Share - Others Atlas 17% 18% Avon 11% TII 23% Hero 31% G Based on volumes of AICMA members (Source: AICMA Data) 26#27Business Drivers Value Cost SALE) SALE Cost competitiveness in Standard bicycles and mass specialty bicycles murugappa Product differentiation, Branding and Service are key to success in premium bicycles Rapid increase in internet penetration throwing up new channels and opportunities Rising aspiration towards cycling in Urban India Retail presence enhances customer connect and market share Brand positioning key for pricing power BRAND G 27#28Our Brands BSA CHAMP HERCULES MTB) TURBODRIVE HHERCULES TOPGEAR HERCULES (MXB Conved HERCULES ROADEO BSA LADYBIRD MACH CITY HERCULES JR. ROADSTERS BSA LADYBIRD montra HERCULES MACH CITY murugappa HERCULES ROADSTERS G ROADED & TRAIL ☑ TRACK&TRAIL CYCLES AND MORE 28#29Key Success Factors Brand equity A portfolio of strong brands - BSA, Ladybird, Hercules, Roadeo, Montra and Mach City - addresses all consumer segments Premium Cycle Group (PCG) • murugappa BSA LADYBIRD HERCULES ROADEO Roadeo and Montra are premium brands well received and seen exceptional growth Representing International brands like Cannondale, Bianchi, Schwinn, Ridley montra MACH CITY TRACK&TRAIL ECLES AND MORE Pioneer in Retail Formats • Large dealer network across India with 10,000+ touch points Retail leadership through its exclusive format of Track and Trail • Track & Trail Urban new stores: 43 • Total Track & Trail Stores: 239 • Omni-channel presence through Track & Trail online portal and in-store Bianchi cannondale DAHN. freedom unfolds GJ. mongoose. SCHWINN RIDLEY BSA HERCULES LADYBIRD ROADED MACH CITY montra 29#30Key Success Factors Promoting Cycling Digital campaigns for its major brands, BSA Ladybird, Hercules, Roadeo, Mach City and Montra Premium bicycles under licence from Disney and Marvel were launched Track and Trail Factory team participated in various cycling competitions murugappa 99.99 Multi Location Servicing • TI Cycles has 2 manufacturing plants and additional Warehouses spread across the country State of art facility at Rajpura Plant with Capacity of around 3 Mn Cycles p.a. Madsa New Delhi bipur Putna D Ob Duppr Nashik C Mumbai BSA PUNCTU CHEAN PROO Pioneer in New Product Development 88 new models and 23 product refreshes delivered here ever stops. The banne micro ALLOY BSA HERCULES LADYBIRD ROADEO MACH CITY montra 30#31Renewed Retail Experience - Track and Trail TRACK TRAIL BIKING AND BEYOND cannondale mongoose GT SCHWINN Bianchi THACK&TRAIL murugappȧ Continuously expanding Track and Trail retail experience into more towns 31#32Promoting Cycling K&T NGUN mo SCHWINN BR TRAIL MAAS annonda BSC PHOTOGRAPHY Track & Trail Factory Racing Team FORDO & TRAIL FONDU montra montra FORD GRAN F TRAIL ACK&TRAIL חה Can etx CK TRAIL RACING CK& D th N ADRASCALS Latex Lat Gran Fondos monta mont murugappa TACK&TRAIL RACING ACK 32 2#33Awards and Accolades CO | Con EXCL INADS DESIGN AWARD EXCELLENCE 2018 Exity Award Certificate This story that TI Cycles of India Clay Excloure Awards 2018 in the Calgary of Mabilly Design: Two Wheelers The wiring erity Hercules Aus wxx by TI Cycles of India E murugappȧ HERCULES ASSASSIN has won in the category MOBILITY DESIGN: TWO-WHEELERS at the 8th CII Design Excellence Awards 2018! HERCULES New products - Awards Hercules Assassin won the CII Design Excellence Award 2018 in Mobility Design : Two Wheelers Category given by CII competing among other major Brands in the Automotive/Transportation sectors. 33#34Business Highlights Market share in overall Trade segment with 23% and with 28% in Specials segment Implemented Material Management System at Ambattur plan for better Storage & material handling, Streamlined Manufacturing New Rajpura plant is ramping up on volumes 43 New Track & Trail Stores opened in the year (Total 239 Stores) Fixed production plan is being implemented in Chennai Rajpura plants for better throughput & effective Inventory management Building for the future Entry into E com channels through strategic tie up with Flipkart & Amazon Digitization Initiatives - Bizom, Tally implementation to penetrate secondary sales. MACH CITY murugappa New stories to share. 34 ==#35Key Financials murugappȧ Rs. Cr Particulars 17-18 18-19 Growth % Net Sales 1,292 1,232 -5% EBITDA 12 25 111% % to Net Sales 1% 2% PBIT 0 11 % to Net Sales 0% 1% Particulars Net Fixed Assets Net Working Capital Capital Employed 31-03-2018 31-03-2019 143 134 90 56 233 190 Capital Expenditure 7 6 35#36Key Financial Trends Net sales 1,332 1,292 ד PBIT (before exceptional) murugappȧ Rs. Cr. 36 1,232 16-17 17-18 18-19 12.3% ROCE 11 0 16-17 17-18 18-19 5.9% 0.1% 16-17 17-18 18-19 36#37Metal Formed Products (Chains, Doorframes and Fine Blanking) PRECISION VALUE ADDED SHEET METAL FORMED COMPONENTS POWER TRANSMISSION CHAINS AND FINE BLANKED COMPONENTS Precision Value added Components murugappȧ 37 32#38Product Profile murugappȧ ■ Metal formed products division cater to both automotive and non-automotive segments as below: Business Mix ■ Automotive: ■ Two Wheeler drive chains, timing chains and Sprockets for Auto-OEMs and After Market ■ Fine Blanked parts and door frames for Passenger cars Non Auto, 18% Railways, 8% ■ Non-Automotive: Industrial Chains for the domestic market and exports Railway sections for Passenger Coaches G Auto, 74% 38#39Industry Automotive Sector: ■ Two-Wheeler production grown by 6% ■ Scooters: 0% ■ Motor Cycles: 9% ■ Passenger Vehicles production growth also remained flat but Commercial Vehicles registered a growth of 24% Non-Automotive Sector: ■ Non-Automotive segment is driven by GDP growth and Industrial Production trend New Product development, Application Engineering and Import Substitution drive growth murugappȧ 39#40G Business Drivers Auto OEM, Fine Blanked Products, Industrial Chains and Roll Formed Products Adequate Capacity • Good push in the service murugappȧ ● Quality, Consistency and reliability • Cost Competitiveness • Factories located closer to customer locations • New Product Development and Application Engineering and Import Substitution Capability Auto Aftermarket • Leveraging brand presence • Reach and Availability Exports • Distributors for Standard Roller Chains • Price Competitiveness • Business Development with OEMS for specific programs • Growth is flat due to global recession 40 40#41Auto Chains - Industry and Customers Industry Segments Two Wheeler Manufacturers (OEMs) Spare Parts Market - Auto Chains and Sprockets for Motor Cycles Key Customers: TVS Hero BAJAJ Distinctly Ahead TVS MOTOR COMPANY HONDA murugappa YAMAHA SUZUKI 41#42Auto Chain Products Drive Chain KIT CAM Chain After market brand 00 murugappa DIAMOND DIAMOND LEGEND DIAMOND NEW IMPROVED BULLET KIT DIAMOND day 50 S G 42#43G Fine Blanking - Industry and Customers Industry Segments Two Wheeler - Motor Cycles and Scooters OEMs murugappȧ Four Wheeler - Passenger and Commercial Vehicle OEMs and Tier-I Companies Industrial Applications 4W OEMs MARUTI MS SUZUKI Count NISSAN brose Technik für Automobile US BEHR F FORCE MOTORS Customers 2W OEMS 4W Tier - I CLEAR CORPORATION Autoliv PHA Valeo Best Koki Industrial Hero BAJAS AUTO YAMAHA BOSCH 1 LMW. LIMITED A HONDA TVS SUZUKI AREVA 43#44Fine Blanking Products Engine Parts Motor Cycle Scooter murugappa Transmission Parts Engine and Transmission Parts Seat Parts Braking System Parts Seat Belt and Door Parts Steering Parts Transmission Parts Engine Parts Hood Parts 44 44#45Industrial Chains - Industry and Customers Industry Segments Construction Equipment Manufacturers Material Handling ( Fork Lifts) Agricultural Equipment Manufacturers Cement and Power Conveyer Manufacturers Textile and Packing Primary Metals (Steel) Key Customers KNORR BREMSE iwis wir bewegen die welt IWIS Germany MCF MITSUBISHI CATERPILLAR FORKLIFT AMERICA INC. Mitsubish-Caterpillar Godrej murugappa बी एच ई एल BHEL bea TECHNOLOGIES BEA Italy Atlas Copco sedis Sedis France G 45#46Industrial Chains - Products ODD A 88 Power Transmission and Conveying Chains Agricultural Chains DD Engineering Class Chains murugappa G 46#47Roll Formed - Industry and Customers Industry Segments murugappa Four Wheelers- Passenger Car and Commercial Vehicle OEMs and Tier- I Companies Two Wheelers- OEMs and Tier-I Companies Indian Railways - Coach and Wagon Factories HYUNDAI TOYOTA MARUTI SUZUKI NISSAN ISUZU YAMAHA Revs Your Heart TATA MOTORS RENAULT ROYAL ENFIELD D GM Mahindra COMSTAR CONSTAR AUTOMOTIVE TECHNOLOGIES PRIVATE LTD. Lucas-TVS Limited Cummins PIAGGIO ASHOK LEYLAND NISSAN BOSCH 47#48Roll Formed - Products Four Wheelers Car Door Frames Two Wheelers 2W - Mudguard Side Impact Beams Motor Casings Divisional Channels Cowl Cross Beam Railways murugappa 7 48#49Key Success Factors Segment Leader •Market leader in Drive and Cam chains in Auto OEM segment Leadership position in Domestic Industrial Chains • Preferred supplier for Roll formed Door Frames Significant player in Fine Blanking Components Multi Location murugappa Strategically located plants close by to leading OEMs for JIT supplies • Total of 9 Manufacturing Plants (3 Chain Plants and 6 Metal Forming Plants) and also warehouses to service Auto After Market and IC requirements Brand Equity Strong brand equity - "Diamond and Rombo" brands G 49 49#50Metal formed - Key Success Factors murugappȧ Quality Technology Customers PPM maintained lesser than customer target World Class High Speed Presses and Tools for Fine blanking, Chains and Motor casings Catering to major 2W OEMs and Tier 1 Auto customers Industrial Chain OEMs in Domestic and Exports Large dealership network in Auto and Industrial Chains G 50#51Metal formed - Awards and Recognition TV100 Sponsored by BARA ORS Industrial Excellence Awards 2018 UT MOTORS Celebra of You Vork tion dia IM GEARS PVT LTD. 2018 AWARD IM SWORD VERS LEXUS RE CERTIFICATE APPRECIATION Presented to M/S. TIDC INDIA Best Supplier in the Category of "Quality Improvement" Supplier Meet 2018 We look Forward to your continuous efforts! 10-Sep-2018 Congratulations! VN. Vijayaraghavan MANAGING DIRECTOR Chenna-73 murugappa 2018 SUPPLIER MEET IM GEARS PVT LTD Award from TV100 for innovation in Manufacturing Technology Category Award IM Gears for Best Supplier in the category of Quality Improvement 3rd Competiti On ABK TAMILN 3rd Competition for Maintena On 10th March 2 Organised by ABK-AOTS DOS TAMILNADU CENTRE, CHEN 2 teams from participated in the State Level Competition conducted by ABK AOTS DOSOKAI under the Topic of Maintenance personnel in Chennai. Two teams won Platinum Awards. 51 54#52Metal formed - Awards and Recognition murugappa 7 NISSAN Supplier Packaging Development Center Packaging Engineering Course CERTIFICATE G. Raja TI METAL FORMING w confidex at or newing the packaging Per De 2016 NISSAN ILN NIMAN ILN. Eaport Packing Engiring Department Atul Shalanes Atal Shahane VPs Exp BNK Nisa Mator Inalis Private Lined 4 Teams won award in the Competition for the Theme of Igniting Minds For Innovation Through Quality Concepts by NCQC-QCFI. Renault Nissan appreciation award for completing packaging development course HYUNDAI 2018 PROMISE 7.0 Appreciation Award Vendor Convention 10th April 2018 Celebrating years of SUGAR Fd together Hyundai appreciation award QCFI National Convention on Quality Concepts NCQC-2018 21st 24th December 2018 Organised Quality rcle Fo Theme - of India in Association with ABV- GWALIOR ovation NCQC Award 52 2#53Business Highlights Market Leadership in Chains and Doorframes. Sales of Rs.1286 Cr, registering a growth of 17% PBIT of Rs.123 Cr., registering a growth of 20% Awarded as "4 STAR Rating supplier" from Hyundai in Quality, Delivery, Development, Management aspects Increased share of business with Hyundai from 86% to 95% Achieved "Global Qualified Supplier" from M/s Alstom Transport India Limited Bagged business from Alstom to supply Montreal and Mumbai Metro coach parts Received approval to supply coach kit to Modern Coach Factory(MCF) murugappa 53#54Key Financials murugappa G Rs. Cr Particulars 17-18 18-19 Growth % Net Sales 1,095 1,286 17% EBITDA 136 163 20% % to Net Sales 12% 13% PBIT 102 123 20% % to Net Sales 9% 10% Particulars 31-03-2018 31-03-2019 Net Fixed Assets 282 336 Net Working Capital 109 114 Capital Employed 392 450 Capital Expenditure 56 78 54 54#55Key Financial Trends Net sales 1,095 996 1,286 16-17 17-18 18-19 23.7% PBIT (before exceptional) 88 88 102 ד murugappȧ Rs. Cr. 123 16-17 17-18 18-19 ROCE 27.3% 26.2% 16-17 17-18 18-19 55#56Gears & Gear Products Shanthi Gears Shanthi Gears (SGL) - Strong Brand in Industrial Gears murugappa G 56 99#57Business Overview Began operations in 1969 at Coimbatore . Acquired by TII in 2012 • High EBITDA Margin Business murugappa SGL Shareholding Pattern - 31-03-2019 Others 21.72% Leader in custom-made gears & loose. gears ~70% of revenues come from customized products Fully integrated operations with in- house R&D team Design and engineering capabilities Foundry, Fabrication and forging unit Comprehensive Heat treatment facilities Tool room for manufacturing hobs, cutters FII 2.94% DII 5.21% Key Products • Gears and Pinions •Gear boxes Promoter (TII) 70.12% •Gear assemblies •Worm Spares •Geared motors •Service & Repair 57 40#58Integrated Gear Box Manufacturing Facility In-House Heat Treatment Shop (Case carburising & State-of-the-Art Gear Manufacturing facility Gas Nitriding) Shanthi Gears murugappa In-House Foundry (CI & SG Iron) for Casing G In-House Forging facility to take care of Urgent jobs In-house Fabricated Shop with CNC Gas cutting along with Stress Relieving Furnace In house Non- Ferrous Casting facility for PB & Al- Br 58#59Gear and Gear Boxes murugappa Spur/ Helical Pinion Shaft Gear Internal Gear Worm and Wheel Straight Bevel Spiral Bevel Worm Gearboxes- Adaptable Worm Gearboxes- Standard Worm Gearboxes- Special Helical Gearboxes Bevel Helical Gearboxes 59#60Key Customers 7 murugappa बी एच ई एल DAVID BROWN DB BHARAT FORGE KALYANI GE BOMBARDIER &ε BHEL Atlas Copco VOITH KONECRANES CATERPILLARⓇ Lifting Businesses™ TEREX DEMAG PSG PackSys Global ΤΑΤΑ ELGI Clean Energy® हि एलि HAL A TATA STEEL AREVA Propel your dreams IR भारतीय SIEMENS BALDOR A MEMBER OF THE ABD GROUP RIETR Holcimmins + INDIAN RAILWAYS uniGear une société du groupe DAVID BROWN a DAVID BROWN Company 60 60#61Business Highlights ' 14% growth in Revenue from ₹243 Crs as against *214 Crs Good performance in Service (28% growth over LY) & Helical (32 % growth over LY) Milestone achievements IISCO Stand, Jindal Polyfilm, Andhra Cement, Brahmaputra Crackers ACC, Nuclear Power Corporation Development of Key customers product - ABB, Medha Machined Casting, Twin Disc, CG Power Certifications - AS surveillance audit, IRIS and Ingersoll Rand audit Investments - Commissioned 2 new HNK VTC's & electric induction melting furnace. Reduction of Customer complaints by 24% murugappa G 61#62Key Financials murugappa G Rs. Cr Particulars 17-18 18-19 Growth % Net Revenue 214 243 13% EBITDA 37 41 12% % to Net Revenue 17% 17% PBT 33 42 28% % to Net Revenue 15% 17% PAT 29 33 17% % to Net Revenue 13% 14% Particulars Net Fixed Assets Net Working Capital Investments Capital Employed 31-03-2018 31-03-2019 57 59 93 112 161 127 312 297 Capital Expenditure 7 12 62 62#63Key Financial Trends Net Revenue 243 214 184 29 29 16-17 17-18 18-19 9% ROCE 14% PBT 33 ד murugappȧ Rs. Cr. 43 16-17 17-18 18-19 21% 16-17 17-18 18-19 89 63#64Corporate Office: Tube Investments of India Ltd. "Dare House", 234 N S C Bose Road, Chennai - 600 001, India. +91 44 4217 7770 +91 44 4211 0404 [email protected] murugappa -Disclaimer-- This presentation contains forward-looking statements which may be identified by their use of words like "plans," "expects," "will," "anticipates," "believes," "intends," "projects," "estimates" or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. 64