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LUMAX
LlL:CS:lP:2018—19 23.10.2018
Sir/Ma’am,
We are enclosing herewith the investor Presentation of the Company for the C12 FY 2018-19.
This presentation will also be made available on the website of the Company
www.lumaxindustries.com.
Thanking You,
Yours faithfully,
ANKITA GUPTA
COMPANY SECRETARY
M.NO. A50165
Encl.: as above
L7489D1PC02
Lumax Industries Limited
Plot No. 16, Sector—18, T +91 124 2341090, 2341324, 2397298, 2341328
Maruti Complex, E lil.ho@lumaxmail.com
Gurugram -
122015
Haryana, India
www.lumaxworld.in *
CIN: Lumax industries Limited REGD. OFFICE: 2"‘1 Floor, Harbans Bhawan-ll, Commercial
-
110046 DK IAIN
T +91 114985 7832, E cao@lumaxmail.com
—
—
GROUP
Lumax Industries Limited
Investor Presentation - October 2018
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lumax Industries
Limited (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 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
DK Jain Group
3
Two Listed Entities
Lumax Industries Limited
Group Revenue Break Up (%)
Products & Services FY18 Revenue of Rs. 2,950 Cr
End-to-end Automotive Lighting Solutions
Partnerships
• Stanley – Japan 6%
• SL Corporation - Korea 56%
4
Purpose, Vision & Values
GROUP PURPOSE
We deliver pride and progress with positivity
VISION
Building an admired high performance global organisation in whom
all stakeholders have absolute trust
VALUES
Respect | Integrity | Passion | Excellence
5
Diversified Product Range – 4-wheelers & CV
6
Diversified Product Range – 2-wheelers
Aftermarket products
7
Fostering Partnerships to Deliver Excellence
Relationship Since 1984 Relationship Since 1997 Relationship Since 2007 Relationship Since 2008
37.5% in Lumax Industries 78.72% in SL Lumax Limited 50% in Lumax Cornaglia Auto 45% in Lumax Mannoh
Limited Technologies Pvt Limited Allied Technologies Limited
USA
JV for Seat Frames, Exclusive Distributorship JV for Oxygen Sensors JV for Telematics
Structures and Agreement
Products and Services
Mechanism
Relationship Since 2013 Relationship Since 2014 2017 2017
8
27 Locations close to Customers
Haryana Bawal 1
Dharuhera 1
Gurugram 2
Manesar 3
Maharashtra Pune 8
Waluj 2
Karnataka Bengaluru 2
Gujarat Sanand 1
Technology Leadership
Research & Development ▪ Partnerships with global players provides
▪ Government approved 3 R&D competitive edge
facilities & 1 Overseas Design ▪ Avant-grade technology at par with the
Centre in Taiwan best players worldwide
10
Relationships with Diversified Customers
Tier 1
11
Relationships with Diversified Customers
Tractor/FES Export
1985: Setup a
manufacturing unit in
1981: Lumax Industries Gurugram, Haryana.
Pvt Limited established The company went
1945: Founded a after taking over
partnership firm public & is listed on
partnership firm Globe the stock exchange 1997-98
‘Globe Auto Industries’ Auto Industries
as a Trading concern
1984: TA signed with
1956-57: Set-up Stanley, Japan for
dedicated unit for Lighting Equipment
Automotive Lighting 1994
1997: Joint Venture
Equipment in Delhi agreement with SL
1977-79: Setup Lumax Limited.
manufacturing units in Further Equity
Faridabad, Haryana 1985 1994: Equity participation by
and Pune, participation of Stanley, Japan
Maharashtra Stanley, Japan in 1998: Set-up
Lumax Industries manufacturing unit at
1981-84 Limited Dharuhera, Haryana
Manufacturing unit
setup in Aurangabad,
Maharashtra
1945-80
14
Milestone
15
Competitive Advantages
Market Leaders
Leadership in Lighting
Partnerships
With more than 3 decades of partnership
Product Portfolio
with Stanley, Japan, the only global auto One of the few players with largest
lighting company to manufacture LED range of lighting solutions
worldwide, having presence in Japan,
America, China, Asia Pacific and Europe
16
H1FY19: Product Mix
Product wise Sales H1FY18 (Rs. 694 Crores)* Product wise Sales H1FY19 (Rs. 995 Crores)*
11% 10%
20% 25%
65%
69%
Front Lighting Rear Lighting Others Front Lighting Rear Lighting Others
Segment Wise Sales Q2FY18 (Rs. 372 Crores)* Segment Wise Sales Q2FY19 (Rs. 513 Crores)*
4% 6%
25%
28%
66%
71%
Passenger Vehicles 2-Wheelers Commercial Vehicles Passenger Vehicles 2-Wheelers Commercial Vehicles
18
H1FY19: Segment Mix
Segment Wise Sales H1FY18 (Rs. 694 Crores)* Segment Wise Sales H1FY19 (Rs. 995 Crores)*
4% 6%
28%
28%
68% 66%
Passenger Vehicles 2-Wheelers Commercial Vehicles Passenger Vehicles 2-Wheelers Commercial Vehicles
19
Q2FY19: Customer Mix
Customer wise sales Q2FY18 (Rs. 372 Crores)* Customer wise sales Q2FY19 (Rs. 513 Crores)*
MSIL M&M HCIL HMSI HML TATA Others MSIL M&M HCIL HMSI HML TATA Others
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H1FY19: Customer Mix
Customer wise sales H1FY18 (Rs. 694Crores)* Customer wise sales H1FY19 (Rs. 995 Crores)*
47, 7%
67, 7%
90, 13%
100, 10%
73, 11% 86, 9%
78, 11% 60, 9% 154, 15% 45, 4%
MSIL M&M HCIL HMSI HML TATA Others MSIL M&M HCIL HMSI HML TATA Others
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H1FY19: LED Lighting vs Conventional Lighting
Product wise Sales H1FY18 (Rs. 694 Crores)* Product wise Sales H1FY19 (Rs. 995 Crores)*
15%
35%
65%
85%
22
SL Lumax Limited
Sales Breakup
SL Lumax Limited FY18 – Rs. 1,084 Crores
Others
Chassis, Trim & Mirrors
Shift Lever, Parking Brakes
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Strong Customer Base …
Tractor /FES
Pantnagar
Dharuhera
Bawal
Haridwar
Gurugram
Chakan
Sanand
Chinchwad
SL Lumax Ltd
Bengaluru
Chennai
Map not to scale. All data, information and maps are provided “as is” without warranty or any
representation of accuracy, timeliness or completeness
25
State of Art Manufacturing Facilities
26
State of Art Manufacturing Facilities
27
State of Art Manufacturing Facilities
28
…In-house R&D & Validation Facility
29
…In-house Design Studio
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Share Holding as of 30th September, 2018
Shareholding breakup
Stanley Electric Company Ltd
31
Promoter Group
Mr. Dhanesh Kumar Jain Mr. Deepak Jain Mr. Anmol Jain
Chairman Emeritus Chairman & Managing Director Jt. Managing Director
▪ He is 75 years of age & holds a MBA ▪ He is 43 years of age & is a Business Graduate ▪ He is 39 years of age & holds
degree from Delhi university & has from Illinois Institute of Technology, USA with Bachelors in Business
successfully completed President specialization in Operations Management & Administration in Finance &
Management Program from Harvard International Business Supply Chain Management
Business School ▪ He has undergone extensive training at (Double major) from Michigan
Stanley Co. Limited, U.S.A. & Stanley Electric State University, U.S.A.
▪ Over 50 years of experience in the
automotive industry in management, Co. Limited, Japan. He has over 21 years ▪ He worked as a Management
operations & administrative roles experience Trainee with GHSP, U.S.A. &
▪ He has held various industry positions ▪ He was chairman of ACMA’s HR/IR & Skill subsequently, joined Lumax
Development Committee, past chairman of Group, in 2000 & has over 17
▪Past president of ACMA, Sustainable Technology Development years of experience
President suppliers association – Committee of ACMA, past National ▪ He has held various positions in
Toyota Kirloskar Motors, Coordinator of Young Business Leader Forum Industry associations. He was the
Chairman of Trade Fairs of ACMA and past president of Supplier’s National Coordinator of ACMA-
Committee ACMA, Co-chairman club, Honda Cars India Limited YBLF from 2014-16. He was also
of Regional Committee on
Membership of Northern Region ▪ He is Member of Young President the Chairman CII Haryana State
Organization and Entrepreneurs’ Council in 2012-13
CII, Past Chairman of CSR sub-
committee of the Northern Organization. He also holds the position of ▪ He is currently the EC member of
Region of CII Chairman of Northern Region of ACMA & Vice Honda Cars India Supplier’s Club
President of Toyota Kirloskar Supplier’s & Bajaj Auto Vendor Association
Association MC member
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Promoter Group
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…Supported by Strong Independent Directors
Mr. A P Gandhi Mr. Rajeev Kapoor Mr. M.C. Gupta Mr. Dhiraj Dhar Gupta Mr. Ratan Kapur Ms. Ritika Modi
• He is 79 years old & is a • He is 66 years old and • He is 80 years old and is • He is 68 years old and • He is 60 years old & is • She has an industry
mechanical engineer mechanical engineer (hons) MA in English holds B.Com honours a B.Com Graduate experience of over 25
from NIT, Kurukshetra Literature from Agra from SRCC, Delhi from Delhi University years in the travel and
• He has held top • He was MD for Copart Inc. University University • He is an Industrialist & airline industry
leadership positions in and has served as
prestigious • He is a Retd. IAS officer • He is an Industrialist; possesses more than • She is currently
independent director on
organisations having & has served the Union Director & Promoter 32 years of experience Regional President of
the board of RICO
over 40 years of & State Governments of KSS Abhishek Auto in Auto Component UNIGLOBE Travel
industries, Co-Chair of
experience in various capacities Pvt Limited, having Industry South Asia, heading
Economic Committees
including Deputy over 3 decades of • He is the current the largest single
• His last assignment was SIAM, Served on board of
Secretary, Min of experience in Auto President of ACMA & brand travel franchise
as President at Hyundai ARAI, Pune and on board of
Finance-Dept. of Component Chairman of Haryana network in South Asia
Motors India Limited. Indo Italian chamber of
economic Affairs, manufacturing State Council of CII region
Prior to that he was Commerce
Advisor – UNIDO
Chief Executive –R&D at • Listed on the power list of
(United Nations
Escorts Limited & at 2012, alongside Mr. Ratan
Industrial Development
Telco before that, Tata, Mr. Rahul Bajaj, Mr.
Organisation)
holding various senior Anand Mahindra etc.
positions in the area of • Entrepreneurial by nature
manufacturing and experience in excess of
operations 40 years
34
Professional & Experienced Team
Mr. Vineet Sahni Mr. Sanjay Mehta Mr. Naval Khanna Mr. Vikas Marwah Mr. Shrutikant Rustagi
CEO & Senior Executive Director Group – Chief Financial Officer Corporate Head – Taxation Chief Strategy Officer Chief Financial Officer
Age: 53 years Age: 51 years Age: 59 years Age: 51 Years Age: 48 Years
Experience: 30 Years Experience: 27 Years Experience: 40 years Experience: 28 Years Experience: 23 Years
35
The Path Ahead
Rear Lamp – Technology Evolution
Split type Tail Lamp Tail Lamp with LED All LED Tail Lamp 3D LED Tail lamp Adaptive rear Lighting
Signature and Tail function
• Tail lamps were • New Styling • Penetration of • Almost all the new • All the new models
introduced with adopted in Tail LED’s into Tail models launched to be introduced
Clear Lenses with Lamps with Lamps with were having are with LED’s for
adoption of Multi introduction of Split introduction of one presence of LED’s having better
Color Molding Tail Lamp design or more feature either for one of Aesthetic
technique for giving with LED. the functions or for Appearance and
a Homogenous Signature Lighting Signature
• LED’s adopted for
appearance to the Appearance
giving Signature
tail lamp shape in the Tail
Lamps
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Head Lamp – Technology Evolution
Head Lamp with Bulb Projector Head Lamp All LED Head Lamp Head Lamp with bulb + Led Head Lamp with LED Projector
DRL and LED DRL
• Head Lamps with Halogen Bulbs • Introduction of Projector Lamps • Almost all the models were • The future models which are
with Clear PC Lens with Multi with Halogen Bulbs for new introduced either with LED DRL replacing the existing models are
Focal Reflector (MFR) for Light vehicles launched in India by feature or Projector Head Lamp now either with Projector Head
Distribution were introduced in more number of OEM’s as (either with Halogen Bulb or HID Lamp (Bulb) whose predecessor
the passenger vehicle segment standard feature Bulb) or with both LED DRL and were with Halogen Bulbs and
Projector Head Lamp with Projector Head Lamp (with
• Indian OEM’s introduced • In the later half of 2014 and start
LED) whose predecessors were
Projector Lamps with Halogen of 2015 more number of OEM’s • Headlamps with Signature DRL’s or
with Projector with Halogen
Lamps and some features with shifted focus to introduction of Lighting become a styling feature
Bulbs
LED like the DRL (Daytime LED’s for feature of DRL’s and / or and were introduced in the
Running Lights). But Projector signature Lighting vehicles launched in 2016
Lamps were offered as an option
• Also in 2015 more number of • Later half of 2016 also witnessed
in top variants of the vehicles and
Head Lamps were introduced the introduction of LED Projector
not as a standard feature
with LED’s for DRL feature with Head Lamps thus leading to more
usage of HID (High Intensity penetration of Electronics and LED
Discharge) Bulbs for Projector into Head Lamps
LED to drive the future
• Year 2017 will witness the
growth
transition to manufacturing of
Localized LED Head Lamp with
Signature DRL and Position
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Leveraging on our Strengths for LED Market
39
Financials
Expansion funded through Internal Accruals
760 812
661 713 68.0
36.0
13.0
5.0 3.7
FY14 FY15 FY16 FY17* FY18* H1FY19* FY14 FY15 FY16 FY17* FY18* H1FY19*
0.45
70.0
52.0 52.0 0.21
36.0
21.0
0.05 0.02 0.01
FY14 FY15 FY16 FY17* FY18* H1FY19* FY14 FY15 FY16 FY17* FY18* H1FY19*
Standalone Results
Revenue EBITDA
4.57% +343 Bps 8.00%
+10% 1,650
1,255 1,271 +27% 133.7
1,117 1,143
1,014 100.3
88.6 81.1
51.1 59.3
FY14 FY15 FY16 FY17* FY18* H1FY19* FY14 FY15 FY16 FY17* FY18* H1FY19*
+26% 111.1
63.2 87.5
+69%
75.3 71.8
46.1 44.7
37.4 52.7
44.3
16.6
7.7
FY14 FY15 FY16 FY17* FY18* H1FY19* FY14 FY15 FY16 FY17* FY18* H1FY19*
Standalone Results Margins
9.2 13.2
8.6
4.4
FY14 FY15 FY16 FY17* FY18* H1FY19*^ FY14 FY15 FY16 FY17* FY18* H1FY19*^
49.3 47.8
145 40.0
120
55 17.7
35 8.2
FY14 FY15 FY16 FY17* FY18* FY14 FY15 FY16 FY17* FY18* H1FY19*
Standalone Results
ROCE = EBIT / Capital Employed
* Numbers updated as per IND-AS ^TTM basis Capital Employed = Networth + Long term debt including Current Maturity 43
Consolidated Performance
0%
+36% +49%
518 45 21 21
380
30
Particulars (Rs. in Crores.) Q2 FY19 Q2 FY18 YoY H1 FY19 H1 FY18 YoY FY18
Total Revenue (Net of Excise duty) 517.78 379.50 36.4% 1,013.73 719.78 40.8% 1,649.35
# Numbers updated as per IND-AS * MTM Forex Loss / (Gain) part of other expenses and other income in reported financials 46
Standalone Balance Sheet
ASSETS (Rs. in Crores.) Sept-18 Mar-18 EQUITY & LIABILITIES Sept-18 Mar-18
Non-current assets Equity
Property, plant and equipment 521.68 514.02
Equity Share capital 9.35 9.35
Capital work-in-progress 46.91 33.83
Non Controlling Interest 0.00 0.00
Other intangible assets 3.97 4.35
Financial assets Other equity 300.92 283.52
Investments 4.51 4.51 Sub-total - Shareholders' funds 310.26 292.86
Loans 4.63 3.92 LIABILITIES
Others 2.53 2.31 Non-current liabilities
Other tax Assets 0.59 0.81
Financial liabilities
Deferred tax assets (net) 0.27
Other non-current assets 18.30 8.08 Borrowings 1.66 2.28
Sub-total - Non-Current Assets 603.13 572.10 Provisions 21.62 20.03
Current assets Deferred tax liabilities (net) 3.41 0.00
Inventories 208.12 168.79 Other non-current liabilities 0.00 0.00
Financial assets Sub-total - Non-current liabilities 26.69 22.31
Investments 0.12 0.15
Current liabilities
Trade receivables 321.32 318.23
Cash and cash equivalents 2.01 1.24 Financial liabilities
Bank balances other than Cash 0.01 0.47 Borrowings 116.14 99.21
Loans 0.90 0.95 Trade payables 577.39 536.36
Derivatives 0.00 0.00 Other financial liabilities 87.29 117.95
Others 25.53 32.55
Provisions 14.37 11.27
Other current assets 71.49 39.92
Other current liabilities 101.71 54.44
Sub-total - Current Assets 629.49 562.30
Assets Classified as held for Sale 1.25 0.02 Sub-total - Current liabilities 896.91 819.24
TOTAL - ASSETS 1,233.86 1,134.41 TOTAL - EQUITY AND LIABILITIES 1,233.86 1,134.41
Particulars (Rs. in Crores.) Q2 FY19 Q2 FY18 YoY H1 FY19 H1 FY18 YoY FY18
Total Revenue (Net of Excise duty) 517.78 379.50 36.4% 1,013.73 719.78 40.8% 1,649.35
Raw Material 348.17 245.82 680.90 468.96 1,090.14
Employee Expenses 55.40 45.23 109.17 88.59 188.93
Other Expenses 69.37 58.40 134.81 107.65 236.55
EBITDA 44.84 30.05 49.2% 88.85 54.58 62.8% 133.72
EBITDA Margin 8.7% 7.9% 8.8% 7.6% 8.1%
Forex Loss / (Gain)* 4.30 -0.50 7.80 -2.00 -2.50
Other Income 1.08 0.28 1.47 0.53 2.96
Depreciation 13.81 11.47 27.11 22.51 47.87
Finance Cost 3.68 1.15 6.76 2.42 7.19
PBT 24.13 18.21 32.5% 48.65 32.17 51.2% 84.13
Profit from Associates 1.83 6.72 5.07 13.78 13.42
Tax 5.09 4.18 12.80 10.04 26.19
PAT 20.87 20.76 0.5% 40.91 35.91 13.9% 71.36
PAT margin 4.0% 5.5% 4.0% 5.0% 4.3%
EPS 22.33 22.21 43.77 38.42 76.34
# Numbers updated as per IND-AS * MTM Forex Loss / (Gain) part of other expenses and other income in reported financials 48
Consolidated Balance Sheet
ASSETS (Rs. in Crores.) Sept-18 Mar-18 EQUITY & LIABILITIES Sept-18 Mar-18
Non-current assets Equity
Property, plant and equipment 521.68 514.02
Equity Share capital 9.35 9.35
Capital work-in-progress 46.91 33.83
Other intangible assets 3.97 4.35 Non Controlling Interest 0.00 0.00
Investments accounted Using Equity Other equity 364.27 352.65
79.93 86.76
Method Sub-total - Shareholders' funds 373.62 362.00
Financial assets
LIABILITIES
Investments 0.96 0.96
Loans 4.63 3.92 Non-current liabilities
Others 2.53 2.31 Financial liabilities
Other tax Assets 0.59 0.81 Borrowings 1.66 2.28
Other non-current assets 18.30 8.08
Provisions 21.62 20.03
Sub-total - Non-Current Assets 679.51 655.04
Deferred tax liabilities (net) 16.43 13.81
Current assets
Inventories 208.12 168.79 Other non-current liabilities 0.00 0.00
Financial assets Sub-total - Non-current liabilities 39.72 36.12
Investments 0.12 0.15 Current liabilities
Trade receivables 321.32 318.23
Financial liabilities
Cash and cash equivalents 2.01 1.24
Borrowings 116.14 99.21
Bank balances other than Cash 0.01 0.47
Loans 0.90 0.95 Trade payables 577.39 536.36
Derivatives 0.00 0.00 Other financial liabilities 87.29 117.95
Others 25.53 32.55 Provisions 14.37 11.27
Other current assets 71.49 39.92
Other current liabilities 101.71 54.44
Sub-total - Current Assets 629.49 562.30
Assets Classified as held for Sale 1.25 0.02 Sub-total - Current liabilities 896.91 819.24
TOTAL - ASSETS 1,310.25 1,217.35 TOTAL - EQUITY AND LIABILITIES 1,310.25 1,217.35
For Tier 2 Upgradation For Gujarat Localization For Overall Vendor Performance
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Awards & Recognition
ICQC Phillipines – Gold Award- Received on 26th October 2017 by both Bawal and Haridwar plant teams
53
Awards & Recognition
Overseas Supplier Association-‘Special Recognition Award’ from Toyota Motor Corporation, award being given by
Mr. Takeshi Uchiyamada, Chairman, Toyota Motor Corporation
54
TPM Award
JIPM-TPM Excellence Award Pantnagar Plant, March 2014 JIPM-TPM Excellence Award Bawal Plant, November 2017
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Future Ready: New Design Centre in Taiwan
Mr. C K Tao, Director, TAITRA-Taiwan Office, Mr. David Ho, Ex-President, TYC Group, Taiwan, along
with Mr. D K Jain, Chairman and Mr. Vineet Sahni, CEO, Lumax Industries Limited
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CSR Initiatives
57
For further information, please contact:
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