Driver Information

And Telematics System Minda Corporation Limited

(NSE: MINDACORP; BSE: 538962)

Analyst and Investor Day Presentation

Safety, Security And

Restraint System

28th February 2019

Interior System

Instrument Clusters Sensors Wiring Harness Locks Door Handles Starter Motors Al & Zn Cutting Parts Plastic Component
Agenda

• Strategic Overview
• Business Overview and Financials
• Marketing and Technology

2
 “Transform and Rise”

Mechanical Automotive Mechatronics

‘Minda Corporation’
‘Minda Corporation’ at
at a
a Glance
Glance

• Safety and Security No of Plants:

1958 Founded by 4 • Driver Information

and Telematics 34
• India: 28
• Europe: 3
Late Sh. S.L. Minda Business
Founded • Interior Plastic Plants • South East Asia: 2
Verticals • Aftermarket • North America: 1

Rs 36,587 FY2017-18 16,000+ Total No. of ~Rs 33,500 Market

Turnover (Inc JV’s) Employees Capitalization
mn People mn

Minda Corporation is a leading automotive component supplier to Indian and Global OEM’s

4 Note: Market Cap as on 31 Dec 2018

 Strategic Focus – Growth Drivers

Growth Drivers

#1 #2 #3 #4

Technology Organic Operational Excellence

• Upgradation of • Increased content per Inorganic growth
legacy products Vehicle through higher in adjacent areas
• New advanced customer engagement Quality Leadership
offerings in non • Exports
legacy products • Aftermarket Cost Reduction

5
 We Will Continue to Focus on
Enhancing Shareholders’
Wealth

6
Agenda

• Strategic Overview

• Business Overview and

Financials
• Marketing and Technology

7
 One of India’s Leading Automotive Component Companies
with Global Footprint
Diversified product portfolio, global customers, strong Revenue Breakdown 9M FY2019
manufacturing, and advanced R&D with six decades of
automotive experience By Geography By End Market

Revenue* Rs. 25,934 mn (FY2018) South

After Passenge
Market r Vehicles
East Asia 9.7% 20.8%
- Safety, Security & Restraint System Europe & 4.8%
- Driver Information & Telematics System North Commerci
Business Verticals America al
- Interior System 26.0% Vehicles
- Aftermarket 31.4%

2-3
Ashok Leyland, Bajaj Auto, CNH, Daimler, Wheelers
Hero Moto Corp, , Honda Motorcycle and India 38.2%
Scooter India, Mahindra & Mahindra, Maruti 69.1%
Key Customers
Suzuki, Suzuki Motorcycle, TVS Motor, Tata
Motors, VE Commercial Vehicles, By Business Segment
Volkswagen, Yamaha Motor
Inerior
Manufacturing 34 Manufacturing facilities strategically Systems
Facilities located globally providing support to OEMs 20.8%
Safety
Security &
Advanced Engineering Centre of Electronics Restraint
R&D Capabilities & Mechatronics in Pune and multiple Systems
specialised R&D Centre across India Driver 45.9%
Informatio
n&
Market Capitalisation Approx. Rs. 33,500 mn Telematics
(as of 31st December 2018) Systems…

8 * Financials as per IND-AS

Robust Growth
Rs. mn
Revenue EBITDA Net Profit

CAGR 21.5% 24.4% 27.9%

1,671
30,411 2,920
2,729 1,417
25,934 1,284
23,206
2,102
20,598
1,887
1,021

10.5%
9.2% 9.6% 9.1%
5.4% 5.4% 5.5%
4.9%

FY17 FY18 LTM Dec 19 9M FY19 FY17 FY18 LTM Dec 19 9M FY19 FY17 FY18 LTM Dec 19 9M FY19

Notes:
• Revenue including Minda Corp Subsidiaries and Joint Ventures for LTM Dec 19 is Rs. 41,592 million
• IND-AS are applicable to Minda Corporation from 1st April 2017 with transition date of 1st April 2016

9
Business Vertical Performance
Rs. mn
Safety Security & Restraint System Driver Information & Telematics System Interior System

14,148

12,158 9,941
10,330 10,662 6,321
8,327
7,710 5,449
4,834
6120 4148

12.0% 12.3%
10.4% 11.1%
9.3% 9.8% 10.2% 9.9%
10.2%
6.3%
3.2%
0.6%

FY17 FY18 LTM Dec-18 9M FY19 FY17 FY18 LTM Dec-18 9M FY19 FY17 FY18 LTM Dec-18 9M FY19

Notes:
1. IND-AS are applicable to Minda Corporation from 1st April 2017 with transition date of 1st April 2016
2. The above are indicative figures

10
Strong Balance Sheet with Steady Returns

Return on Capital Employed (ROCE) Net Debt/Equity

0.95x

17.2% 0.81x
15.9%
13.9%

0.38x

FY17 FY18 Sep-18 FY17 FY18 Sep 18

Note:
• IND-AS are applicable to Minda Corporation from 1st April 2017 with transition date of 1st April 2016

11
Consistent Dividend Payout and Ratings Upgrade

Minda Corp Long Term Credit rating

Consistent Dividend Payout
upgraded by two rating agencies inand NSE
Listed on BSE
current financial year

30% IND AA-

Stable
25% 25%

20%

A+
10% 10% 10%
12.5% 12.5%
Stable
FY2015 FY2016 FY2017 FY2018 FY2019*

Interim Dividend

12
Agenda

• Scheme of Merger

13
Scheme of Merger of Domestic subsidiaries (WoS)

 The Company has filed the Scheme of Consolidation of 100% Indian

merger with NCLT Delhi and Bengaluru for 1 subsidiaries will result in a
merger of domestic wholly owned larger standalone entity
subsidiaries (WoS) into Minda Corporation
(MCL) Synergies from consolidation &
2 cost optimization
 Entities to be merged into MCL are:
• Minda Management Services Ltd.
• Minda Sai Ltd.
Resulting in unlocking value for
• Minda Automotive Solutions Ltd.
3 Stakeholders. Better market
• Minda Autoelektrik Ltd.
perception
• Minda Telematics and Electric
Mobility Solutions Pvt. Ltd.
Simplified Corporate Structure
4

Present scheme of merger will not result in expansion of equity capital or change in shareholding pattern of MCL

14
 Current Group Operating Structure

MINDA CORPORATION Promoter stake 64.67%

100% 100% 25%

Minda KTSN Minda Automotive* Furukawa Minda

Germany 50%
Minda Management* Minda VAST
100%
Minda Autoelektrik*
Minda KTSN
Poland 51%
Minda SAI* Minda Stoneridge
100%
Minda KTSN 100%
Almighty Spark Minda Foundation
Czech Republic Minda
International
Telematics*
Minda KTSN Legends
100%
Mexico Overseas WoS

PT Minda Domestic Wos

Automotive
JV Companies
Minda
CSR Entity
Vietnam *Entities under present scheme of merger with MCL

15
Agenda

• Minda KTSN Europe

16
 European Auto Industry Facing Challenges
EU Car Registrations down Month on Month

In December 2018, the EU passenger car market declined for the fourth month in a row. Last
month registrations fell by 8.4%, continuing the downward trend that started with the
introduction of WLTP in September. With the exception of Italy (+2.0%), all major EU markets
saw demand for cars contract during the last month of the year.

17
 Minda KTSN Europe
 Snapshot Minda KTSN Product Portfolio
 Manufactures Interior Plastic Products-
Cupholder, Glovebox, steering column
shrouds etc
 Marquee Customers including VW, Audi,
BMW, Daimler, Porsche and Tier 1 suppliers Steering Column Cup Holder

 Challenges
 Impacted by WLTP emission norms, general
Industry slowdown, customer concentration
 High Breakeven point, Increasing input
cost, constraint in passing on raw material Glove Box Seat Panel
cost to customer

 Countermeasures
 To diversify Customer base
 Focus on cost reduction program
 Converting fixed cost to variable/semi-
Middle Arm Rest
variable Oil Sump
 Strengthening the management team
18
Agenda

• Strategic Overview
• Business Overview and Financials

• Marketing and Technology

19
Diversified Customer Portfolio

Volvo
JLR
BMW
VW
Group
Yamaha

Piaggio
M&M

Maruti
Suzuki

Bajaj

TVS

Ford
Tata
Motors

Harley
Davidson Ashok
Leyland
Renault
Hero Nissan Honda

20
Growth Factors / Key Focus Areas / Inorganic

• Shift from component • Electronification • Growth through new

• Premiumization to module/ geographies, new
system supplier • KAM for better products and new
• Increased focus on
account acquisition & technologies
Export & after market Adapting the
• penetration
changeover from
• Increasing content existing technology to • Early supplier
per vehicle the new technology engagement for
upcoming tech.
• Increase in market • Integration with EV
share and automated • Leverage JV Partners’
vehicles technology strength

21
Guiding Force - Automotive Mission Plan 2026

22
Outperforming the Industry Growth

CAGR (FY17 to LTM Dec 19) • Consistently outperformed industry growth

25%
over the years through
21.5%
• New products in existing customers
• New customers with existing
20%
products
17.0%
• New customers with new products
15%
11.5%
12.2% • Export remained a focus area over the past
few years. In Aluminium die casting, added
10%
major European Tier 1s

5% 3.4% • Entry into Starter Motor & Alternators and

Telematics through inorganic route
0%
Auto Industry MCL Passenger Commercial Two Wheelers • Entry into Sensor business
Vehicles Vehicles
Note:
1. MCL – Business value
2. Auto Industry, PV, CV, 2W – Production volume

Source : SIAM

23
Revenue Breakdown 9M FY2019

By Geography By End Market

Passenger
South East After Market
Vehicles
Asia 9.7%
20.8%
4.8%
Europe &
North
America Commercial
26.0% Vehicles
31.4%

By Business Segment 2-3

India Wheelers
69.1% 38.2%
Inerior
Systems
20.8%

Safety
Security &
Restraint
Systems
45.9%

Driver
Information &
Telematics
Systems
33.2%

24
Exports Long Term Focus

Products Segment Geographies

Existing
1. Aluminum
Castings 1. 2W & ATV 1. Europe
2. W/H & Connector 2. Tractors & Farm Equipment 2. North America
3. Starters & 3. Tier 1 3. ASEAN
Alternators
4. Security Systems New
LTM Dec 18
Rs. 240 Cr.
1. Turkey
CAGR 30%

 Export continue to be a focus area for the

group with clear product, segment and
geography wise strategy.
2015-16 2016-17 2017-18 2018-19 (E)  Target to double up exports in next three years.
25 All figures include JV Sales
 Current Market Position – Domestic

Market Leader in India for Locksets in 2W segment (>30% Market Share)

Market Leader for Wiring Harness in CV, 2W and Tractor segment in India
(>30% Market Share each)

Market Leader in India for Instrument Clusters, Commercial Vehicle

segment
(>60% Market Share)

Market Leader for Instrument Clusters in 3W and Tractor segment in India

(>60% Market Share each)

26
Future Market Situation (Content per Vehicle) – Domestic

2X
2X

Segment Wise
Movement Technology
Roadmap

1.5X
4X

2X

2W 3W CV PV TRACTOR
FY18 FY22
27 Note: Content Per Vehicle are illustrative and based on assumption that all products manufactured by the Group are supplied to a vehicle in India
Agenda

• Technology

28
Mega Trends Leading to Opportunities

 

ADAS, Autonomous &

Connected Mobility Shared Mobility Electrification
AI , Safety

Electronification ( Implementation )


Regulatory ( Push )
 SW as a differentiator Vehicle Emission BSVI

“CASE” is seen as a driver towards the future of mobility  Priority Items

29
Spark Minda Technical Centre (SMIT)

~100 Engineers !! > 30% Masters Degree Anechoic EMC Lab

2 PhD’s Diverse work force HIL / SIL Lab

SMIT is able to attract talent resources from automotive

industry !!
30
 Mechanical to Mechatronics : Transformation

31
Evolution of vehicle access technology

BLE
Immobilizer Gesture based Artificial
Key less entry System Intelligence
With Remote / Smart access
Ignition Key Key Entry ( PEPS )

32
Evolution of vehicle access technology

Smart Key
2w
 Two Types of Smart Key Systems developed – Knob Type and
Automatic
 Content per Vehicle  Knob Type : 3X & Automatic :6X
 5 Programs acquired, 1st SOP from Oct 2019

iRIS 1.5 / 2.0 & Standalone ESCL

4w
 IRIS 1.5 : Price differentiator , 50 % price of PEPS

 Advance customer engagement for iRIS 1.5

 Development initiated for iRIS 2.0

 Standalone ESCL being developed to for PC

Several IP’s are registered and industrialization plan in progress to make it successful !!
33
Mechanical to Digital Clusters

Reliability Reliability
Basic Features Enhanced Features

Digital Digital : Connected

Working on various 2W / 4W programs
Content per vehicle : 2X
SOP’s starting M’2019 ( BS6 Programs )
Mechanical Mechatronics
Group is prepared well for the digitization technologies leading to content increase,
Acquired the Prestigious ASIA Truck Program of VOLVO

34
Wiring Harness : Technology & complexity increase

Changes Element BSIV BSVI Impact

Circuits ~ 200 ~ 250 ~30% Increase
BS4 to BS6 
CRDI + Exhaust Connectors ~ 30 ~ 45 ~15% Increase
after treatment
+ Safety Special Circuit •Twisted Pairs •Twisted Already Used
features
Content •Shielded Pairs

 Increase cables •Shielded

cables
by ~
1.3X
Element BSIV BSVI Impact
Circuits ~ 50 ~ 150 3X increase
BS4 to BS6 
Connectors ~6 ~ 16 > 2X increase
EFI Content
Increase Special Circuit Not •Twisted Pairs Addition of

 by ~
2.5X
needed •Shielded cables Special Circuits

Group is ready for the technology changes resulting content increase !!

Connector localization and reduction of import contents will help to sustain !!
35
Sensors: Technology & complexity increase

Temp, Speed Diesel Filter Position, EGT, EGRT,

& Level Actuators
Sensors ABS, Level PM sensor

• Motorized linear
travel
• RTD elements • Perfect replacement
• PT1000 , PT 200 option for cable latch
• Hall / MR based systems
• PM sensor –
• Direction • Rated life 100k
Platinum impedance
• NTC • NTC + WIF + detection cycles for std force
sensor
• VR and Hall Heater • Linear output
• OBD checks
• Wire wound / • Key on response • Capacitive , Reed
TFR • Self check type

Advanced sensing and actuation applications, Group is prepared well to address Regulatory,
Technological and Future requirements, e.g., 2W-EFI system, BS6 emissions, etc.

36
 Electric Mobility Solutions

37
Spark Minda : EV Products Strategy ( Non-legacy )

Battery : Lead acid / Lithium

DC-DC Convertor Battery Voltage : 48 to 60 v

Battery Capacity : 25 to 120 AH

Motor : 600W – 3 kW
Battery Charger
Peak Speed : 25km – 80 km

Range : 60km – 120km

Products ≤ 3 KW
Motor Controller
38
Evolution of EV in India : 2W / 3W solutions


Content Per Vehicle


~ INR 5150
Battery Charger
Battery Charger : 190V-270V AC
DC-DC Converter
DC-DC Converter : 12V, 120 & 240 W OEM acquisition
Project Status ongoing, Likely SOP
from Dec 2019
Project Status Vol. ramp-up in 2019

Motor Controller
 Telematics

Motor Controller: 600 W - 3KW Telematics

Discussions initiated Additional customer

with potential OEMs, Project Status acquisition in EV
Project Status
Likely SOP from Mar ongoing
2020
Content Per Vehicle
 Product under Validation & Pilot
 Product Developed & in Mass Production ~ INR 6300 Marketing ongoing

39
Evolution of EV in India : Entry level PC solutions


Content Per Vehicle
~ INR 20000 
Battery Charger
Telematics
Battery Charger : 190V-270V AC
Telematics
Project Status Launch by M’2020
Additional customer
Project Status acquisition in EV
ongoing


DC-DC Converter
Product Developed & in Mass Production
 DC-DC Convertor : 12V, 1-1.5KW

 Product development progress Project Status Launch by M’2020

40
 Connected Mobility
Solutions

41
Connected Mobility Solutions

Driver SOP
LOI Behavior
Fleet
Service Manage-
Alert ment
Remote
Services Anti
e-Call
FMS Theft SOP
SOP
Shared
Mobility Women
Safety

Fuel
Data Pilferage
SOP Analytics POC
LOI : Letter of Indent
SOP: Start of production
POC : Proof of concept ready

AIS140 certified
Group has developed various IP’s and use cases which are moving to SOP

42
Integrated Tracking System (ITS 1.0)
 Features
TBCU  Store up to 150 routes with 150 stops in each route
GPS
 GPS location synchronization
 Synchronized Audio and Visual information inside bus
 Multi Lingual display with display intensity control
 User friendly software to download / modify / create
Smart Phone route data in the console through PC
Interface with
the Console
unit for route
upload Single Console Unit
 USP’s
synchronization to  Single console unit with built in audio amplifier
four display boards
 Smart Phone Interface
 Telematics Integrated vehicle / bus tracking device
 Multiple audio announcement option
Single console
unit with built in  Integrated display board ( 4 Nos )
audio amplifier

Multiple audio
Spark Minda is engaged with leading
announcement commercial vehicle OEM, Product launch by
option Nov’ 2019

Cost effective solution being worked out to disrupt the todays market
43
 Electronification &
Regulatory Solutions

44
Commercial Vehicles : Regulatory Driven Solutions

Intelligent Transportation System [ITS]

Fire Detection & Alarm System [FDAS] TBCU
GP
S


AIS-135 standard
AIS-140 standard
 Reverse Parking & driver assistance systems


AIS-145 standard RFQ’s received from OEM’s

Spark Minda is working to deploy various new tech. products by Nov 2019
45
Two Wheeler : Electronification Solutions

 Instrument Cluster
 
Smart Key with ESCL
Body Control Module

 
Answer Back System
BT based Navigation device

 Content per 2w :
 Integrated Starter Generator System
Immobilizer
~ INR 7000

 Development in progress
 Ready to engage with OEM

46
Tractor : Electronification Solutions
Digital RSAS
 EHPTO
 Clusters

 Blue-eye

Flasher
 Safety Controller

Various Sensors 
• 
Hitch Level

  •
• EGT (BS-VI) 

Fuel level (BS-VI)
Content per
BCM VCU • Ambient Air Temperature vehicle

(BS-VI) INR 10,400
 Development in progress
 Ready to engage with OEM

47
 Passenger Cars : Electronification Solutions

 
 Instrument Cluster

ESCL 
Body Control Module

RPAS

 
iRIS 1.5 / 2.0 Content per vehicle
~ INR 6,500
Immobilizer
 Development in progress  Ready to engage with OEM
48
Executive Summary

1 Spark Minda is equipped to provide end-to-end system solutions

2 Identify the opp. in EV and Connected Mobility and be the front runner

3 Focus on localization in specific components to bring the value

4 “CASE” is seen as a driver towards the future of the mobility

Improvising on manufacturing technologies to cater the new developments
5

Spark Minda is exploring the strong partnership with OEM’s for the
futuristic and new technology products
49
 “Transform and Rise”

Mechanical Automotive Mechatronics

 Thank You
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the
implementation of strategic initiatives, and other statements relating to Minda Corporation Limited (“Minda Corp” or the Company) future
business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of
risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency
exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with
us, legislative developments, and other key factors that could affect our business and financial performance.

Minda Corp undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.

Corporate Office:
INVESTOR RELATIONS CONTACT
Plot No: 404-405, 5th Floor, Udyog Vihar, Phase-III
Sector - 20, Gurugram - 122016 Bikash Dugar Ravi Gothwal / Vikas Luhach
Tel: +91 124 469 8400 • Fax: +91 124 469 8450 Lead-Investor Relations Churchgate Partners
Minda Corporation minda@churchgatepartners.com
Registered Office: Bikash.dugar@minda.co.in +91 22 6169 5988
Town Hall - Presentation
A–15, Ashok Vihar, Phase – 1, Delhi – 110 052 +91 124 469 8485
51