1

May

201

5 │

Mum

bai

Fu

ll Y

ear

F15 &

Q4F

15 U

pd

ate

Ma

hin

dra

CIE

Au

tom

oti

ve L

imit

ed

2

Co

nte

nts

►K

ey M

es

sa

ge

s

•A

llia

nce

be

twe

en

CIE

& M

ah

ind

ra G

rou

p

•A

bo

ut M

ah

ind

ra C

IE

•M

ark

et O

verv

iew

•P

erf

orm

an

ce

•S

trate

gy &

Ris

k M

anagem

ent

•A

bo

ut C

IE A

uto

mo

tive

3

Key M

essag

es o

f th

is P

resen

tati

on

•

Alli

ance b

etw

een C

IE A

uto

motive &

Mahin

dra

gro

up f

urt

hers

th

e g

lob

alizati

on

asp

irati

on

s o

f b

oth

th

e g

rou

ps

•C

IE,

with

its

un

iqu

e b

usin

ess m

od

el th

at

ha

s d

eliv

ere

d s

usta

ine

d &

pro

fita

ble

gro

wth

, is

in

a p

ositio

n to h

elp

MC

IE b

eco

me o

ne o

f th

e l

ead

ing

au

toco

mp

pla

yers

in

Asia

•M

erg

er

of

Mah

ind

ra C

IE c

om

pan

ies f

orm

all

y c

om

ple

ted

on

Decem

ber

10,

2014

−M

ah

ind

ra C

IE n

ow

ha

s 3

22

mil

lio

n s

ha

res

lis

ted

; S

ha

reh

old

ing s

tru

ctu

re: C

IE –

53

.18

%, M

&M

+

Pro

mote

r G

roup –

21.7

%, P

ublic

– 2

5.1

3%

−M

CIE

Co

ns

oli

da

ted

is

div

ers

ifie

d a

cro

ss s

ix t

ech

no

log

ies (

forg

ing

s, sta

mp

ing

s, ca

stin

gs,

ma

gn

etics, g

ea

rs &

co

mp

osite

s)

& g

eo

gra

ph

ies (

Ind

ia, G

erm

an

y, Ita

ly, S

pa

in, U

K, L

ith

ua

nia

)

•M

ark

et

Ou

tlo

ok f

or

MC

IE i

n I

nd

ia a

s w

ell a

s E

uro

pe is c

au

tio

usly

op

tim

isti

c

•P

erf

orm

an

ce S

um

mary

−

Q4

F1

5 v

s.

Q4

F1

4 (

refe

r p

ag

e 2

7)

ØS

tan

da

lon

e -

Re

ve

nu

e G

row

th: -7

.4%

, C

ha

ng

e in

No

rma

lize

d E

BIT

DA

%*

: -0

.3%

ØC

on

so

lida

ted -

Re

ve

nu

e G

row

th : 1

2.1

% C

ha

ng

e in

No

rma

lize

d E

BIT

DA

%*

: +

3.8

%

−F

15

vs.

F1

4 (

refe

r p

ag

e 2

8)

ØS

tandalo

ne -

Revenue G

row

th : -

3.0

%, C

hange in N

orm

aliz

ed E

BIT

DA

%*

: -0

.8%

ØC

on

so

lida

ted -

Re

ve

nu

e G

row

th : -

1.9

%, C

ha

ng

e in

No

rma

lize

d E

BIT

DA

%*

: +

2.1

%

* -

EB

ITD

A%

without

one tim

e g

ain

s a

nd losses

4

Key M

essag

es o

f th

is P

resen

tati

on

…C

on

td.

•M

CIE

overa

ll s

trate

gy i

s d

ivid

ed

in

tw

o p

hases

−

Ph

ase

1 (

20

14

-17

) fo

cu

se

s o

n c

on

so

lida

tion

in o

rde

r to

me

et th

e p

erf

orm

an

ce

crite

ria

* o

f C

IE

(RO

NA

%, E

BIT

%, F

CF

/ E

BIT

DA

, N

OA

/ E

BIT

DA

, D

eb

t/ E

BIT

DA

)

−P

hase

2 (2

017

onw

ards

) will

focu

s on

exp

ansi

on in

Indi

a &

AS

EA

N to

mee

t CIE

’s o

bjec

tives

in

Asia

•M

CIE

has d

iffe

ren

t str

ate

gic

issu

es &

resp

on

ses i

n i

ts c

on

sti

tuen

t b

usin

esses

−

Ind

ia –

Au

tom

otive

Ma

rke

t o

utlo

ok is c

au

tio

usly

op

tim

istic; fo

cu

s re

ma

ins o

n im

pro

vin

g c

urr

en

t

pro

fita

bili

ty le

ve

ls

−G

erm

any +

UK

(M

FE

) –

Turn

aro

und p

rogre

ssin

g s

mooth

ly

−It

aly

(M

C)

– O

ff r

oa

d m

ark

et co

ntin

ue

s to

de

clin

e; E

ffo

rts to

div

ers

ify m

ark

ets

un

de

rwa

y; sh

ort

term

fo

cu

s o

n c

ost re

du

ctio

n ; o

ne

tim

e c

osts

in

clu

din

g r

ed

un

da

ncy c

osts

de

pre

ssin

g

pro

fita

bili

ty in

FY

15

;

−S

pa

in +

Lith

ua

nia

(C

IEF

) –

Cu

rre

nt p

erf

orm

an

ce to

be

ma

inta

ine

d

•M

CIE

has U

niq

ue O

pera

tin

g M

od

el

focu

sed

on

−

Op

era

tio

na

l exce

llen

ce

−N

etw

ork

ed

org

an

iza

tion

with

min

ima

l fixe

d o

ve

rhe

ad

s

−D

ive

rsifie

d a

cro

ss p

roce

sse

s, cu

sto

me

rs &

ge

og

rap

hie

s

−“T

ier 1

.5 p

laye

r” :

Tier

2 p

laye

r with

Com

plex

val

ue a

dded

par

ts

Note

– R

ON

A:

Retu

rn o

n N

et A

sse

ts, F

CF

: F

ree

Ca

sh

Flo

w a

fte

r C

ap

ex, N

OA

: N

et

Op

era

tin

g A

sse

ts

*Th

ese

ratio

s a

re u

se

d b

y C

IE to

eva

lua

te e

ach

of its b

usin

esse

s. R

efe

r p

ag

e 4

3 fo

r de

tails

on

CIE

bu

sin

ess m

od

el

5

Key H

igh

lig

hts

: F

15

Str

ate

gic

All

ian

ce o

f M

ah

ind

ra &

CIE

co

mp

lete

d

•M

erg

er

of

Mahin

dra

CIE

com

panie

s f

orm

ally

com

ple

ted

on D

ecem

ber

10,

2014

•

Mahin

dra

CIE

now

has 3

22 m

illio

n s

hare

s lis

ted

Ind

ia

•S

tam

pin

gs D

ivis

ion:

−

New

pla

nt

at

Zaheera

ba

d (

Tela

ngana,

India

) com

mis

sio

ned

•

Ca

stin

gs D

ivis

ion

:

−T

urb

ocharg

er

housin

g s

ale

s c

rosses 1

mn u

nits/

yr

−A

dded F

ord

, Lin

am

ar

& D

aim

ler

as c

usto

mers

•

Fo

rgin

gs D

ivis

ion

−

Bala

nce

r sh

aft

asse

mbly

de

ve

lop

ed &

intr

odu

ced

at

ke

y

custo

mers

•

Mahin

dra

Gears

& T

ransm

issio

n−

New

pla

nt

at

Pune (

Mahara

sh

tra,

India

) com

mis

sio

ned

−

Added O

rdin

ance B

oard

of

India

as c

usto

mer

Eu

rop

e

•M

ah

ind

ra F

org

ings E

uro

pe

−

Phase I o

f tu

rnaro

und c

om

ple

ted

−C

losu

re o

f o

ne

of

the

six

lo

ca

tio

ns in

Ge

rma

ny

announced -

JE

CO

at

Gevels

berg

•

Meta

lcaste

llo

−O

rganiz

ational re

str

uctu

ring a

nd p

ers

onnel

rationaliz

ation c

om

ple

ted

•D

ebt

restr

uctu

red

in

Ge

rman

y &

Ita

ly

−In

tere

st

cost

reduced b

y 2

00bps

New

Sta

mpin

gs

Pla

nt at

Zaheera

bad

New

Gears

Pla

nt

at P

une

6

Co

nte

nts

•K

ey M

essa

ge

s

►A

llia

nc

e b

etw

ee

n C

IE &

Ma

hin

dra

Gro

up

•

Ab

ou

t M

ah

ind

ra C

IE

•M

ark

et O

verv

iew

•P

erf

orm

an

ce

•S

trate

gy &

Ris

k M

anagem

ent

•A

bo

ut C

IE A

uto

mo

tive

7

All

ian

ce

of

CIE

+ M

ah

ind

ra:

Re

cap

Ma

hin

dra

Sys

tec

h

(Au

to C

om

po

ne

nts

)

CIE

Au

tom

oti

ve

Co

mp

os

ites

Fo

rgin

gs

Sta

mp

ing

s

Ca

sti

ng

s +

MP

D

Gears

Au

tom

eta

l

Bio

Fu

els

Inf.

& C

om

m.

Te

ch

Ma

hin

dra

CIE

Au

tom

oti

ve

Lim

ite

d

(Au

to C

om

(

Co

mp

tin

gs

+

on

en

ts))

pp

Ma

ch

inin

g

M&

M

raS

Ind

ica

tes tra

nsa

ctio

n

Ind

icate

s m

erg

er

Sta

mp

ing

s

Alu

min

um

Pla

sti

cs

Fo

rgin

gs

*

Bra

zil

Me

xic

o

Lis

ted

co

mp

an

y

* C

IE F

org

ing

s p

lan

ts in

Sp

ain

& L

ith

ua

nia

US

A

Ch

ina

Note

:

•M

ahin

dra

Sys

tech,

a s

ecto

r of th

e M

ahin

dra

Gro

up inclu

ded the

Auto

com

p, E

ngg S

erv

ices,

Ste

el &

Aero

space b

usin

esses.

•

All

com

ponent com

panie

s, lis

ted o

r unlis

ted,

have b

een m

erg

ed

into

Mahin

dra

CIE

Auto

motive L

td (

form

erly

Mahin

dra

Forg

ings L

td

• C

IE d

elis

ted

Auto

meta

l –

Bra

zil

in 2

014

Forg

ing

s, M

achin

ing

Ca

sting

s, S

tam

pin

gs,

Pla

stics, P

ain

ting

Alu

min

um

, F

org

ing

s,

Ma

chin

ing

, S

tam

pin

gs,

Pla

stics, P

ain

ting

Pla

stics

Forg

ing

s

12

.4%

- 2

nd la

rge

st s/h

old

er

53

%

20

%

All

ian

ce i

s a

t tw

o levels

8

All

ian

ce

of

CIE

+ M

ah

ind

ra :

Ra

tio

na

le

Ac

ce

lera

tes t

he

glo

bali

sati

on

& c

on

so

lid

ati

on

str

ate

gie

s o

f b

oth

CIE

& M

&M

§C

IE h

as pre

sen

ce

in

five

continents

a

nd

is

consta

ntly

incre

asin

g its fo

otp

rin

t e

specia

lly in

em

erg

ing

ma

rke

ts.

Ind

ia w

as

th

e k

ey e

me

rgin

g m

ark

et

mis

sin

g f

rom

its

po

rtfo

lio

s

§M

&M

continues i

ts c

om

mitm

ent

to t

he

auto

motive

com

pon

ents

busin

ess -

Fro

m a

ma

jori

ty

ow

ner

of

sm

all

tw

o c

on

tin

en

t b

usin

ess

to

a m

ino

rity

2n

d l

arg

est

sh

are

ho

ldin

g i

n a

larg

e

glo

bal

co

mp

on

en

ts c

om

pan

y o

f ~

US

D 3

Bn

(C

IE)

§P

ost

alli

ance,

CIE

(incl.

MC

IE)

isth

e7

5th

larg

es

tg

lob

al

au

tom

oti

ve

co

mp

on

en

tco

mp

an

y(S

ou

rce

: A

uto

mo

tive

New

s, Ju

ne

16

th 2

01

4)

§G

lobally

, au

tom

oti

ve

su

pp

liers

co

nso

lid

ati

ng

via

M&

A/p

art

ners

hip

s t

o a

ttain

critical m

ass

§S

up

pliers

in

cre

asin

gly

exp

ecte

d t

o h

ave

glo

bal

pre

sen

ce a

nd

sta

nd

ard

s

§E

merg

ing

mark

ets

are

beco

min

g i

ncre

asin

gly

im

po

rtan

t fo

r th

e a

uto

industr

y

9

All

ian

ce

of

CIE

+ M

ah

ind

ra :

Glo

ba

l R

ea

ch

A

llia

nce c

ove

rs m

os

t m

ajo

r au

tom

oti

ve

mark

ets

, esp

ecia

lly t

he k

ey e

merg

ing

mark

ets

of

Mexic

o,

Bra

zil

, In

dia

& C

hin

a

US

A

Auto

meta

l

UK

Sto

kes

Forg

ings

Germ

an

y

Mahin

dra

Forg

ings

Euro

pe

Italy

Meta

lcaste

llo

Ind

ia

Mahin

dra

CIE

Mahin

dra

Gears

Ch

ina

CIE

Mexic

o

Auto

meta

l

Bra

zil

Auto

meta

l

Fra

nce

CIE

Mo

rocco

CIE

Po

rtu

gal

CIE

Ru

ssia

CIE

R

om

an

ia

CIE

Czech

Rep

.

CIE

Sp

ain

CIE

Lit

hu

an

ia

CIE

Lit

hn

i

10

Co

nte

nts

•K

ey M

essa

ge

s

•A

llia

nce

be

twe

en

CIE

& M

ah

ind

ra G

rou

p

►A

bo

ut

Ma

hin

dra

CIE

•

Mark

et O

verv

iew

•P

erf

orm

an

ce

•S

trate

gy &

Ris

k M

anagem

ent

•A

bo

ut C

IE A

uto

mo

tive

11

Ma

hin

dra

CIE

: A

llia

nce

of

CIE

+ M

&M

L

arg

e A

uto

-co

mp

on

en

t M

NC

cre

ate

d;

liste

d i

n M

um

bai

Mah

ind

ra C

IE A

uto

mo

tive L

td,

Ind

ia

Fo

rgin

gs In

dia

(O

rigin

al M

ah

ind

ra C

IE)

Fo

un

dry

In

dia

(fo

rme

rly M

Hin

od

ay)

Ma

gn

etic P

rod

ucts

In

dia

(fo

rme

rly M

Hin

od

ay)

Sta

mp

ing

s In

dia

(fo

rme

rly M

US

CO

)

Com

posites India

(fo

rme

rly M

Co

mp

osite

s)

Ma

hin

dra

Ge

ars

&

Tra

nsm

issio

n L

td

Ge

ars

In

dia

Ma

hin

dra

Fo

rgin

gs

Eu

rop

e*

Fo

rgin

gs G

erm

an

y

Sto

ke

s F

org

ing

s

Fo

rgin

gs U

K

Meta

lcaste

llo

Ge

ars

Ita

ly

CIE

Ga

lfo

r

Fo

rgin

gs S

pa

in

CIE

Le

ga

zp

ie

Fo

rgin

gs S

pa

in

CIE

LT

Fo

rge

Fo

rgin

gs L

ithu

ania

CIE

Au

tom

oti

ve L

td, S

pa

in

M&

M L

td +

Pro

mo

ter

Gro

up

P

ublic

53

.18

% (

CIE

’s h

old

s t

his

th

rou

gh

PIA

2 o

f S

pain

)

21

.7%

2

5.1

3%

10

0%

10

0%

7

6.6

7%

5

3.3

4%

1

00

%

10

0%

Inve

sto

r C

om

pa

ny

10

0%

N

ote

:

1. 23.3

3%

of M

ahin

dra

Gears

& T

ransm

issio

n is h

eld

directly b

y P

IA2, pare

nt com

pany o

f M

ahin

dra

CIE

2. M

CIE

hold

s s

take in M

ahin

dra

Forg

ings E

uro

pe a

nd

Meta

lcaste

llo v

ia M

auritius c

om

panie

s

* In

clu

de

s G

SA

, S

ch

oe

ne

we

iss,F

alk

enro

th &

JE

CO

Ho

ldin

gs a

ll in

Ge

rma

ny. F

or

bu

sin

ess p

urp

ose

s, S

toke

s is c

on

sid

ere

d p

art

of

Ma

hin

dra

Fo

rgin

gs E

uro

pe

46

.67

%

12

Pu

ne

Fo

rgin

gs

Castings

Sta

mp

ing

s

Gears

Ma

gn

etics

Co

mp

osite

s

Ma

ng

ao

n

Co

mp

osite s

- F

ac

tory

- C

orp

ora

te

Off

ice

- W

are

ho

us

e

-

Ch

en

na

i

Pa

ntn

ag

ar

Sta

mp

ing

s

Ru

dra

pu

r

Sta

mpin

gs

Za

he

era

ba

d

Sta

mp

ing

s

(20

15

)

Ra

jko

t

Gears

New

De

lhi

Na

sik

Sta

mp

ing s

Mu

mb

ai

Ma

hin

dra

CIE

In

dia

: S

um

ma

ry

* Post merger representation

71

%

TO

P 8

CU

ST

OM

ER

S

M&

M a

nd T

ata

Moto

rs

are

the larg

est

13

Ma

hin

dra

CIE

– In

dia

: P

rod

uc

ts

Du

cti

le iro

n c

asti

ng

s li

ke

ho

usin

gs, m

an

ifo

lds ,

turb

ocha

rge

rs &

cra

nksh

afts –

ca

st &

ma

ch

ine

d

Fo

rgin

gs

Fo

un

dry

Focus: U

tili

ty V

eh

icle

s &

Cars

, T

rac

tors

Fo

cu

s: U

tili

ty V

eh

icle

s,

Tra

cto

rs,

Co

nstr

uc

tio

n E

qu

ipm

en

t,

Eart

hm

ovin

g

Cra

nks

haft

s &

Stu

b a

xle

s –

fo

rge

d &

ma

ch

ine

d

Fo

cu

s: U

tili

ty V

eh

icle

s &

Cars

Sta

mp

ing

s &

Sta

mp

ed

As

sem

bli

es

S

Sta

mp

ing

s

14

Ma

hin

dra

CIE

– In

dia

: P

rod

uc

ts

Gears

& S

ha

fts

Fo

cu

s: T

rac

tors

, O

ff R

oad

& U

Vs

Ge

ars

Glo

bal

su

pp

lier

of au

tom

oti

ve m

ag

nets

* P

ion

eers

in ferr

ite m

an

ufa

ctu

rin

g in

In

dia

Mag

neti

c

Pro

du

cts

Re

ce

nt e

ntr

an

t in

In

du

cti

on

Lam

ps

Lig

ht

we

igh

tin

g a

uto

mo

tive

so

lutio

ns c

ap

ab

ility

Th

erm

oset

Co

mp

os

ite M

ate

ria

ls &

Pro

du

cts

Co

mp

os

ite

s

Fo

cu

s: E

lectr

icals

&

Sw

itc

hg

ear

Ind

ustr

y

*used in

2W

and C

ar

ele

ctr

ic m

oto

rs e

.g.

for

win

dow

win

din

g a

nd f

or

passiv

e e

ntr

y in

to c

ars

15

Ma

hin

dra

CIE

Eu

rop

e:

Su

mm

ary

Ma

hin

dra

Fo

rgin

gs

Eu

rop

e

4 L

oca

tio

ns in

Ge

rma

ny &

UK

Fo

cu

s : T

rucks

Cu

sto

me

rs : A

ll m

ajo

r T

ruck O

EM

s &

Ke

y T

ier1

80

%+

Sa

les to

Ge

rma

n p

lan

ts

CIE

Fo

rgin

gs

Eu

rop

e

3 L

ocations in

Spain

& L

ithuania

Fo

cu

s : C

ars

Cu

sto

me

rs : M

ajo

r C

ar

OE

MS

80

%+

Sa

les to

W E

uro

pe

Me

talc

as

tello

1 L

oca

tio

n in

Ita

ly

Fo

cu

s : O

ff R

oa

d

Cu

sto

me

rs : M

ajo

r O

ff R

oa

d &

Tra

cto

r O

EM

S

30

%+

Exp

ort

s o

uts

ide

Eu

rop

e

16

Ma

hin

dra

CIE

– E

uro

pe

: P

rod

uc

ts

Fo

rgin

gs

(Ge

rma

ny +

UK

)

Fo

cu

s: T

rucks

Str

on

g p

resen

ce in

Fro

nt

Ax

le

Beam

s &

Ste

el

Pis

ton

s

Basket

of fo

rged

& m

ach

ined

part

s f

or

the

E

uro

pe

an tru

ck m

ark

et in

Eu

rop

e

Fo

rgin

gs

(S

pa

in +

Lit

hu

an

ia)

Focus: C

ars

Str

on

g p

resen

ce in

Cra

nksh

aft

s,

Co

mm

on

Rails &

CV

Jo

ints

in E

uro

pe

Ge

ars

(I

taly

) F

ocu

s: T

racto

rs &

Off

Ro

ad

Hig

h p

rec

isio

n G

ea

rs &

Sh

aft

s f

or

en

gin

es, tr

an

sm

issio

ns, clu

tch

& p

um

ps

17

MC

IE D

iffe

ren

tiato

rs

A u

niq

ue b

us

iness m

od

el

Op

era

tio

nal

Exce

llen

ce

−

MC

IE a

ims

to b

e am

ong

the

‘bes

t in

clas

s’ o

pera

tiona

lly in

eac

h of

our

ver

tical

s −

Guid

ed b

y t

he f

ive k

ey C

IE p

ara

mete

rs*

(viz

. R

ON

A%

, E

BIT

%, F

CF

/ E

BIT

DA

, N

OA

/ E

BIT

DA

, D

ebt/ E

BIT

DA

)

Org

an

izati

on

al

Mo

del

−M

CIE

is im

bib

ing t

he C

IE p

hilo

sophy o

f re

ducin

g o

verh

eads b

y c

reating a

netw

ork

ed o

rganiz

ation w

ith m

inim

al

centr

aliz

ed f

unctions b

acked b

y s

ignific

ant

auto

nom

y t

o p

lant

managers

Div

ers

ific

ati

on

in

pro

du

cts

, c

us

tom

ers

& g

eo

gra

ph

ies

−

MC

IE is p

resent

acro

ss m

ultip

le t

echnolo

gie

s v

iz.

forg

ings,

castings,

sta

mpin

gs,

gears

, m

agnetic p

roducts

&

com

posites in I

ndia

, G

erm

any,

Ita

ly,

UK

, S

pain

& L

ithuania

Tie

r 2

pla

yer

wit

h c

om

ple

x &

valu

e a

dd

ed

part

s t

hat

aff

ord

su

ffic

ien

t vo

lum

e b

ut

wit

h

rela

tively

lesser

co

mp

eti

tio

n :

“T

ier

1.5

pla

yer”

−

Fo

rgin

gs :

Le

ad

ing p

rod

uce

r o

f fo

rged

cra

nksh

aft

s b

oth

in

In

dia

& E

uro

pe;

sig

nific

an

t p

laye

r in

co

mm

on

ra

il

forg

ings in E

uro

pe

−C

astin

gs:

MC

IE is a

mo

ng

In

dia

’s le

ad

ing p

rod

ucers

of

du

ctile

iro

n c

astin

gs in

clu

din

g t

urb

ocha

rge

r h

ou

sin

gs,

diffe

rential housin

gs &

exhaust

manifold

s

−M

agnetics:

India

’s leadin

g p

roducer

& e

xport

er

of

core

s &

magnets

for

car

& 2

Wheele

r in

dustr

y

−S

tam

pin

gs: A

mong t

he larg

est

auto

motive s

tam

pin

g c

om

panie

s in I

ndia

*Th

ese

ratio

s a

re u

se

d b

y C

IE to

eva

lua

te e

ach

of its b

usin

esse

s. R

efe

r p

ag

e 4

3 fo

r de

tails

on

CIE

bu

sin

ess m

od

el

18

Co

nte

nts

•K

ey M

essa

ge

s

•A

llia

nce

be

twe

en

CIE

& M

ah

ind

ra G

rou

p

•A

bo

ut M

ah

ind

ra C

IE

►M

ark

et

Overv

iew

•P

erf

orm

an

ce

•S

trate

gy &

Ris

k M

anagem

ent

•A

bo

ut C

IE A

uto

mo

tive

19

Ind

ia M

ark

et

- Tre

nd

s

Gro

wth

in

all

seg

me

nts

lo

wer

than

exp

ecte

d i

n t

he l

ast

two

years

Sourc

e: C

RIS

IL

Mark

et

- P

rod

uc

tio

n N

um

bers

Sourc

e: C

RIS

IL

Sourc

e: C

RIS

IL

Cars

+ U

V’s

C

V’s

T

rac

tors

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

FY

11

FY

12

FY

13

FY

14

FY

15

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

FY

11

FY

12

FY

13

FY

14

FY

15

0

100000

200000

300000

400000

500000

600000

700000

800000

FY

11

FY

12

FY

13

FY

14

FY

15

20

F1

5

F1

4

Ch

an

ge

69

7,0

83

6

99

,17

5

-0.3

%

19

3,5

52

1

78

,59

5

8.4

%

16

4,6

22

1

56

,87

6

4.9

%

17

3,7

58

1

68

,60

3

3.1

%

165,1

51

195,1

01

-15.4

%

Ind

ia M

ark

et

Up

da

te –

FY

15

Mark

et

- P

rod

uc

tio

n N

um

bers

Cars

+ U

Vs,

CV

s:

Imp

rovin

g;

Tra

cto

rs :

Rem

ain

s a

Co

ncern

So

urc

e: S

IAM

Pe

rio

d

F1

5

F1

4

Ch

an

ge

FY

3

,04

4,8

48

2

,87

9,8

07

5

.7%

Q4

82

3,7

79

7

64

,80

1

7.7

%

Q3

72

8,6

03

6

96

,66

9

4.6

%

Q2

77

3,4

70

7

29

,69

2

6.0

%

Q1

718,9

96

688,6

45

4.4

%

F1

5

F1

4

Ch

an

ge

61

2,9

94

6

96

,80

1

-12

.0%

111,3

59

165,4

61

-32.7

%

13

7,8

24

1

81

,56

1

-24

.1%

18

2,3

86

1

74

,85

8

4.3

%

18

1,4

25

1

74

,92

1

3.7

%

Cars

+ U

tilit

y V

ehic

les

Com

merc

ial V

ehic

les

Tra

cto

rs

So

urc

e: S

IAM

S

ourc

e: T

MA

21

Ke

y C

us

tom

er

Up

da

te

Ou

r k

ey c

usto

mers

su

ffe

red

a >

10%

dro

p in

th

eir

pro

du

cti

on

in

F15

* In

clu

des p

roduction in a

ll segm

ents

e.g

. M

&M

nos. in

clu

des P

V+

UV

+C

V+

Tra

cto

rs+

3W

heele

rs, but exclu

des tw

o w

heele

rs.

Pro

du

cti

on

Nu

mb

ers

fo

r K

ey C

usto

mers

(M

ah

ind

ra &

Mah

ind

ra +

Ta

ta M

oto

rs)

Peri

od

F

15

F14

C

han

ge

FY

1

,18

9,9

65

1,3

39

,41

0

-11.2

%

Q4

301,0

75

325,5

35

-7

.5%

Q3

280,1

19

3

24

,25

7

-13

.6%

Q2

3

10

,13

2

33

5,5

55

-7

.6%

Q1

2

98

,63

9

35

4,0

63

-1

5.7

%

So

urc

e: S

IAM

22

Ou

tlo

ok

•

PV

s+

UV

s:

“

In 2

01

5-1

6, w

e p

roje

ct sa

les o

f ca

rs a

nd

UV

s t

o w

itn

ess a

fa

ste

r g

row

th o

f 9

-11

pe

r ce

nt.

Dem

an

d w

ill b

e d

rive

n b

y a

fu

rth

er

reviv

al in

eco

no

mic

gro

wth

an

d low

inflation

leve

ls, le

ad

ing

to

a s

tea

dy g

row

th in d

ispo

sa

ble

inco

me

s. P

laye

rs

ha

ve

als

o lin

ed

up

a n

um

be

r o

f m

od

els

acro

ss s

eg

me

nts

wh

ich w

ill incre

ase

co

nsu

me

r in

tere

st.

Sa

les o

f ca

rs a

re

exp

ecte

d to

ris

e b

y9

-11

pe

r ce

nt,

le

d b

y g

row

th in s

ma

ll ca

r sale

s. S

ale

s o

f u

tilit

y v

eh

icle

s a

re fo

reca

st to

gro

w b

y 1

2-1

4

pe

r ce

nt,

str

on

ge

r th

an

th

e o

ve

rall

gro

wth

in

pa

sse

ng

er

ve

hic

les.”

… C

RIS

IL R

ese

arc

h r

ep

ort

pu

blis

hed

27

-Ma

r-2

01

5

"

Durin

g F

Y1

5, g

en

era

l se

ntim

en

t im

pro

ve

d in th

e c

ar

ind

ustr

y. In

ve

stm

en

t cycle

s r

esta

rte

d a

nd

th

e w

orr

ies w

hic

h p

eo

ple

w

ere

ha

vin

g w

as g

rea

tly d

imin

ish

ed

. O

n t

he

ou

tlo

ok fo

r th

e c

ar

sa

les in F

Y1

6 th

e ind

ustr

y is h

op

ing

fo

r a

mo

de

rate

g

row

th”…

. S

IAM

Dire

cto

r G

en

era

l V

ishn

u M

ath

ur

•

CV

s:

“C

RIS

IL R

ese

arc

h e

xp

ects

sa

les in th

e m

ed

ium

an

d h

ea

vy c

om

me

rcia

l ve

hic

les (

MH

CV

) se

gm

en

t to

gro

w a

t 1

2-1

5 p

er

ce

nt y-o

-y in

20

15

-16 w

ith

imp

rove

me

nt in

fre

igh

t a

va

ilab

ility

du

e to

fu

rthe

r p

ick-u

p in ind

ustr

ial a

ctivity,

hig

he

r in

frastr

uctu

re p

roje

ct e

xe

cu

tio

n/a

ward

ing a

nd

exp

ecta

tio

ns o

f b

ett

er

ag

ricu

ltu

ral o

utp

ut a

ssu

min

g m

on

so

on

s a

re

mo

re c

on

du

civ

e in

20

15

-16

. A

lso

, w

e e

xp

ect re

pla

ce

me

nt d

em

an

d fro

m la

rge

fle

et o

pe

rato

rs (

LF

Os)

to r

em

ain

he

alth

y

du

rin

g th

e y

ea

r.”…

CR

ISIL

Re

se

arc

h r

ep

ort

pu

blis

he

d 0

9-A

pr-

201

5

“W

hile

th

e M

&H

CV

se

gm

en

t se

em

s t

o h

ave

bo

tto

me

d o

ut,

th

e L

CV

Tru

ck s

eg

me

nt is

still

exp

erie

ncin

g s

lug

gis

h tre

nd

s a

s

s

ign

ific

an

t ca

pa

city a

dd

itio

n o

ve

r th

e p

ast fe

w y

ea

rs a

nd

co

nstr

ain

ed fin

an

cin

g e

nviro

nm

en

t a

mid

st

risin

g d

elin

qu

encie

s

r

em

ain

s a

ch

alle

ng

e fo

r th

e s

eg

me

nt.

”…IC

RA

Re

se

arc

h r

ep

ort

pu

blis

hed

13

-Ap

r-2

01

5

•

Tra

cto

rs: “C

RIS

IL R

ese

arc

h e

xp

ects

do

me

stic tra

cto

r sa

les v

olu

me

s to

reco

ve

r a

nd

gro

w b

y 5

-8 p

er

ce

nt in

20

15

-16

a

ssu

min

g th

e m

on

so

on

s a

re n

orm

al. T

racto

r sa

les w

ill c

on

tin

ue

to

de

clin

e s

ha

rply

in H

1 2

01

5-1

6 o

win

g to

da

ma

ge

to

R

ab

i cro

ps fro

m u

nse

aso

nal r

ain

s.”

… C

RIS

IL R

ese

arc

h r

ep

ort

pu

blis

he

d 1

4-A

pr-

20

15

•

Ou

r ke

y c

usto

me

rs: In

du

str

y o

utlo

ok is c

au

tio

usly

op

tim

istic d

ue

to

gra

du

ally

im

pro

vin

g c

on

su

me

r se

ntim

en

t a

nd

p

rop

osed

ne

w m

od

el la

un

ch

es

Ind

ian

Ma

rke

t -

Fo

rec

as

t

23

Eu

rop

ea

n M

ark

et

- Tre

nd

s

Un

cert

ain

ty i

n m

ark

et

sen

tim

en

t

Sourc

e: A

CE

A

CV

Reg

istr

ati

on

s E

U

PV

Reg

istr

ati

on

s E

U

-

200,0

00

400,0

00

600,0

00

800,0

00

1,0

00,0

00

1,2

00,0

00

1,4

00,0

00

1,6

00,0

00

1,8

00,0

00

2,0

00,0

00

C 0

9

C 1

0

C 1

1

C 1

2

C 1

3

C 1

4

-

2,0

00,0

00

4,0

00,0

00

6,0

00,0

00

8,0

00,0

00

10,0

00,0

00

12,0

00,0

00

14,0

00,0

00

16,0

00,0

00

C 0

9

C 1

0

C 1

1

C 1

2

C 1

3

C 1

4

24

Eu

rop

e M

ark

et

Up

da

te -

Qu

art

erl

y

Pas

se

ng

er

Veh

icle

s:

Ste

ad

y;

Co

mm

erc

ial

Ve

hic

les :

Un

cert

ain

, esp

ecia

lly H

CV

s

Reg

istr

ati

on

Nu

mb

ers

So

urc

e: A

CE

A

Peri

od

F

15

F

14

Ch

an

ge

FY

1

2,8

23

,85

5

12

,10

5,7

05

5

.9%

Q4

3,5

27,4

07

3,2

45,8

46

8.7

%

Q3

2

,97

8,0

52

2

,84

9,2

50

4

.5%

Q2

2

,94

6,5

79

2

,79

5,4

82

5

.4%

Q1

3

,37

1,8

17

3

,21

5,1

27

4

.6%

Pass

en

ger

Veh

icle

s

Peri

od

F

15

F14

Ch

an

ge

FY

1

,90

7,5

18

1

,75

2,7

57

8

.8%

Q4

502,1

23

443,2

46

13.3

%

Q3

4

96

,39

9

48

1,1

43

3

.2%

Q2

4

39

,83

4

39

8,0

95

1

0.5

%

Q1

4

69

,16

2

43

0,2

55

8

.3%

Co

mm

erc

ial

Veh

icle

s

Peri

od

F

15

F14

Ch

an

ge

FY

224,9

00

236,7

95

-5.0

2%

Q4

60,3

81

52,2

34

15.6

%

Q3

61,3

54

79,5

75

-22.9

%

Q2

50,4

50

51,3

72

-1.8

%

Q1

52,7

15

53,6

14

-1.7

%

Co

mm

erc

ial V

eh

icle

s >

16

T*

No

te:

1.

CIE

Fo

rge

op

era

tes la

rge

ly in

th

e p

asse

ng

er

ve

hic

le s

eg

me

nt

2.

Ma

hin

dra

Forg

ing

Eu

rop

e o

pe

rate

s larg

ely

in

th

e

co

mm

erc

ial ve

hic

le s

eg

me

nt b

ut in

th

at se

gm

en

t a

larg

e p

art

of th

e r

eve

nu

es is d

ire

cte

d to

he

avy

co

mm

erc

ial ve

hic

les (

>1

6T

)

25

EU

Ma

rket

- F

ore

cas

t

Ou

tlo

ok

•E

U -

Cars

:

“A

CE

A e

xp

ects

pa

sse

ng

er

ca

r g

row

th to

co

ntin

ue

in 2

01

5, b

ut a

t a

co

nsid

era

bly

slo

we

r

pa

ce

, w

ith

a y

ea

r-on-y

ea

r fo

reca

st in

th

e r

eg

ion

of 2

%. In

te

rms o

f u

nits, th

is w

ou

ld

me

an

pa

sse

ng

er

ca

r re

gis

tra

tio

ns e

dg

ing

clo

se

r to

th

e 1

3 m

illio

n u

nits m

ark

.” –

AC

EA

Pre

ss R

ele

ase

07

Fe

b 2

01

5

“W

e a

nticip

ate

a s

ligh

t in

cre

ase

in d

em

an

d fo

r a

uto

mo

bile

s in

We

ste

rn E

uro

pe

an

d

exp

ect to

se

e s

ligh

t g

row

th in

th

e G

erm

an

ma

rke

t a

s w

ell.

Th

e c

en

tra

l a

nd

Ea

ste

rn-

Euro

pean m

ark

ets

are

lik

ely

to b

e d

ow

n y

ear-

on-y

ea

r d

ue

prim

arily

to

th

e s

ub

sta

ntia

l

fall

in d

em

an

d in

Ru

ssia

”- V

olk

sw

ag

en

AG

20

14

An

nu

al re

po

rt.

•E

U -

CV

s:

“A

co

ntin

ue

d d

em

an

d u

ptu

rn is to

be

an

ticip

ate

d fo

r W

este

rn E

uro

pe

.”

“O

ve

rall,

we

exp

ect a

sta

ble

de

ma

nd

fo

r va

ns in

Eu

rop

e in

20

15

.Th

at a

pp

lies to

me

diu

m-s

ize

d a

nd

la

rge

ve

hic

les a

s w

ell

as to

sm

all

va

ns.”

“W

e e

xp

ect a

slig

htly la

rge

r m

ark

et vo

lum

e fo

r b

use

s in

We

ste

rn E

uro

pe

in

20

15

th

an

in

20

14

.” –

Da

imle

r G

rou

p 2

01

4 A

nn

ua

l R

ep

ort

26

Co

nte

nts

•K

ey M

essa

ge

s

•A

llia

nce

be

twe

en

CIE

& M

ah

ind

ra G

rou

p

•A

bo

ut M

ah

ind

ra C

IE

•M

ark

et O

verv

iew

►P

erf

orm

an

ce

•S

trate

gy &

Ris

k M

anagem

ent

•A

bo

ut C

IE A

uto

mo

tive

27

Q4

F15

Pe

rfo

rman

ce

Sta

nd

alo

ne

C

on

so

lid

ate

d

No

tes

:

•R

efe

r p

ag

e 1

1 o

f th

is p

rese

nta

tio

n fo

r d

escri

ptio

n o

f M

CIE

Sta

nd

alo

ne

& M

CIE

Con

so

lida

ted

•F

ina

ncia

l fig

ure

s o

f fo

reig

n s

ub

sid

iari

es h

ave

be

en

co

nve

rte

d a

t t

he

exch

an

ge

ra

te o

f 1

Eu

ro =

R

s 7

7.3

1

•Q

4 F

15

C

on

so

lida

ted

PA

T in

clu

de

s e

xce

ptio

na

l co

sts

to

th

e e

xte

nt

of

Rs 2

40

2 M

io lik

e p

rovis

ion

of

Red

un

da

ncie

s, p

rovis

ion

fo

r e

mp

loye

e p

en

sio

n b

ase

d

on

actu

ari

al v

alu

atio

n a

nd

Go

od

will

wri

te o

ff in

co

nso

fin

an

cia

ls

•C

IE F

org

ing

s n

um

be

rs fo

r Q

4F

14

, a

re c

alc

ula

ted

on

Pro

ra

ta fo

r 3

mo

nth

s b

ase

d o

n C

Y 2

01

3 fin

an

cia

ls

All

figu

res in IN

R M

illio

ns

Para

mete

r Q

4F

15

Q4F

14

Ch

an

ge

Q

4F

15

Q4F

14

Ch

an

ge

Sale

s

4,1

40

4,4

70

-7.4

%

13,7

31

12,2

49

12.1

%

EB

ITD

A

255

374

-31.8

%

1147

958

19.7

%

EB

ITD

A %

6.2

%

8.4

%

-2.2

%

8.4

%

7.8

%

0.5

%

EB

ITD

A w

/o o

ne t

ime g

ain

s a

nd losses

335

374

-10.4

%

1,5

95

958

166.5

%

EB

ITD

A%

w/o

one t

ime g

ain

s a

nd

losse

s

8.1

%

8.4

%

-0.3

%

11.6

%

7.8

%

3.8

%

EB

IT

119

270

-55.9

%

-9

19

616

-249.1

%

EB

IT %

2.9

%

6.0

%

-3.2

%

-6

.7%

5.0

%

-11.7

%

EB

IT w

/o o

ne t

ime g

ain

s a

nd losses

199

270

-26.3

%

1,4

83

616

140.7

%

EB

IT %

w

/o o

ne t

ime g

ain

s a

nd losses

4.8

%

6.0

%

-1.2

%

10.8

%

5.0

%

5.8

%

PA

T

323

209

54.5

%

-9

60

1,5

01

-164.0

%

PA

T %

7.8

%

4.7

%

3.1

%

-7

.0%

12.3

%

-19.2

%

PA

T w

/o o

ne t

ime g

ain

s a

nd losses

403

209

92.8

%

1,4

42

1,5

01

-3.9

%

PA

T%

w/o

one t

ime g

ain

s a

nd losses

9.7

%

4.7

%

5.1

%

10.5

%

12.3

%

-1.8

%

28

Fu

ll Y

ea

r F

15

Pe

rfo

rma

nc

e

Sta

nd

alo

ne

C

on

so

lid

ate

d

No

tes:`

•R

efe

r page 1

1 o

f th

is p

resenta

tion f

or

descri

ption o

f M

CIE

Sta

ndalo

ne &

MC

IE C

onsolid

ate

d

•F

inancia

l figure

s

of

fore

ign s

ubsid

iari

es h

ave b

een c

onvert

ed a

t th

e e

xchange r

ate

( 1

Euro

= R

s 7

7.3

1)

•R

esults for

CIE

Forg

ings f

or

F 1

4 a

bove a

re f

or

Cale

ndar

year

2013.

•F

14 P

AT

for

both

sta

ndalo

ne &

consolid

ate

d f

inancia

ls inclu

des E

xceptional gain

on S

ale

of

Land a

nd I

nvestm

ents

in S

tam

pin

gs D

ivis

ion (

ers

twhile

MU

SC

O)

of

Rs. 1714 M

io

(Net of

Taxes)

•C

onsolid

ate

d

F1

5 P

AT

in

clu

des

exceptio

nal costs

to

the e

xte

nt

of

Rs 3

,187

Mio

lik

e p

rovis

ion o

f R

edundancie

s,

pro

vis

ion

for

em

plo

yee p

ensio

n b

ased o

n a

ctu

aria

l valu

atio

n

and

Goodw

ill w

rite

off

All

figu

res in IN

R M

illio

ns

Para

mete

r F

15

F1

4

Ch

an

ge

F

15

F

14

C

ha

ng

e

Sale

s

16,4

25

16,9

31

-3.0

%

55,6

99

56,7

51

-1.9

%

EB

ITD

A

1,3

32

1,6

00

-16.7

%

4,4

02

4,2

83

2.8

%

EB

ITD

A %

8.1

%

9.4

%

-1.3

%

7.9

%

7.5

%

0.4

%

EB

ITD

A w

/o o

ne t

ime g

ain

s a

nd

losse

s

1,4

12

1,6

00

-11.7

%

5,3

28

4,2

83

24.4

%

EB

ITD

A%

w/o

one t

ime g

ain

s a

nd

losse

s

8.6

%

9.4

%

-0.8

%

9.6

%

7.5

%

2.1

%

EB

IT

843

3315

-74.6

%

195

3126

-93.8

%

EB

IT %

5.1

%

19.6

%

-14.4

%

0.4

%

5.5

%

-5.2

%

EB

IT w

/o o

ne t

ime g

ain

s a

nd losses

923

1601

-42.3

%

3014

1412

113.5

%

EB

IT %

w

/o o

ne t

ime g

ain

s a

nd

losse

s

5.6

%

9.5

%

-3.8

%

5.4

%

2.5

%

2.9

%

PA

T

777

2,2

24

-65.1

%

-7

81

1,2

21

-164%

PA

T %

4.7

%

13.1

%

-8.4

%

-1

.4%

2.2

%

-3.6

%

PA

T w

/o o

ne t

ime g

ain

s a

nd losses

857

510

68.0

%

2,4

06

-493

-588%

PA

T%

w/o

on

e t

ime

ga

ins a

nd lo

sse

s

5.2

%

3.0

%

+2.2

%

4.3

%

-0.9

%

5.2

%

29

Ba

lan

ce

Sh

ee

t –

As

pe

r re

su

lts

su

bm

itte

d t

o S

toc

k E

xc

ha

ng

es

P

arti

cu

lars

Mar

31,

2015

Mar

31,

2014

Mar

31,

2015

Mar

31,

2014

Rs i

n L

akh

sR

s i

n L

akh

sR

s i

n L

akh

sR

s i

n L

akh

s

AEQ

UIT

Y A

ND

LIA

BIL

ITIE

S

1Sh

areh

old

ers' fu

nd

s

(a)

Share

capit

al

32,2

97.6

3

9,2

34.0

5

32,2

97.6

3

9,2

34.0

5

(b)

Reserv

e a

nd s

urp

lus

198,5

55.2

9

83,9

17.2

5

175,2

59.0

5

56,3

69.6

9

Su

b-

tota

l- S

hareh

old

ers' fu

nd

s

230,8

52.9

2

93,1

51.3

0

207,5

56.6

8

65,6

03.7

4

2Sh

are a

pp

licati

on

mon

ey p

en

din

g f

or a

llotm

en

t

2N

on

- cu

rren

t li

ab

ilit

ies

(

a)

Long t

erm

borr

ow

ings

2,2

31.0

4

1,4

60.9

4

189,6

00.7

5

31,5

75.5

5

(

b)

Defe

rred t

ax lia

bilit

ies (

Net)

1,7

49.1

7

545.8

9

3,3

31.0

7

556.9

1

(

c)

Oth

er

long t

erm

lia

bilit

ies

2,8

77.0

8

89.9

8

827.5

6

304.6

0

(

d)

Long-

term

pro

vis

ions

-

-

21,9

91.5

7

18,5

90.9

7

Su

b -

Tota

l N

on

- cu

rren

t li

ab

ilit

ies

6,8

57.2

9

2,0

96.8

1

215,7

50.9

5

51,0

28.0

3

3C

urren

t li

ab

ilit

ies

(a

) Short

-term

borr

ow

ings

1,2

18.4

1

5,9

20.7

9

95

37

.87

36,4

21.8

9

(b

) T

rade p

ayable

s

21,5

34.6

5

8,1

04.2

9

10

48

09

.59

27,2

01.2

8

(c

) O

ther

curr

ent

liabilit

ies

12,3

06.8

2

1,4

65.8

5

21

83

0.2

20,0

90.7

1

(d

) Short

-term

pro

vis

ions

753.6

6

229.8

0

3

60

9.9

11,3

15.8

6

Su

b-t

ota

l -C

urren

t li

ab

ilit

ies

35,8

13.5

5

15,7

20.7

3

139,7

87.5

7

85,0

29.7

4

TO

TA

L -

EQ

UIT

Y A

ND

LIA

BIL

ITIE

S273,5

23.7

6

110,9

68.8

4

563,0

95.2

0

201,6

61.5

1

BA

SSET

S

1N

on

-cu

rren

t assets

(a)

Fix

ed a

ssets

61,1

09.4

1

18,5

33.2

4

3

42

36

3.5

31

24

04

1.7

2

(b)

Non C

urr

ent

investm

ents

152,8

04.6

4

75,5

27.8

6

7

67

.95

21

8.1

7

(c)

Defe

rred T

ax a

ssets

(net)

-

-

13

07

3.0

86

55

4.6

1

(d)

Long -

term

loans a

nd a

dvances

10,3

05.0

3

934.3

0

6

11

01

.33

93

5.0

9

(e)

Oth

er

Non C

urr

ent

Assets

-

-

25

9.3

4

Su

b t

ota

l N

on

Cu

rren

t A

ssets

224,2

19.0

8

94,9

95.4

0

417,5

65.2

3

131,7

49.5

9

2C

urren

t A

ssets

(a)

Curr

ent

Investm

ents

4,9

33.1

8

5,5

65.1

1

49

33

.18

55

65

.11

(b)

Invento

ries

15,2

47.8

9

4,4

35.2

7

68

49

6.2

23

68

25

.31

(c)

Tra

de R

eceiv

able

s23,0

68.6

9

4,9

31.8

5

42

25

1.2

21

60

94

.14

(d)

Cash &

Cash E

quiv

ale

nts

1,7

77.0

1

605.2

2

8

92

7.2

34

35

9.4

8

(e)

Short

term

loans a

nd a

dvances

3,8

11.7

1

426.5

7

1

36

21

.26

70

58

.46

(f)

Oth

er

Curr

ent

Assets

466.1

9

9.4

2

7

30

0.8

69

.42

Su

b t

ota

l C

urren

t A

ssets

49,3

04.6

8

15,9

73.4

4

145,5

29.9

7

69,9

11.9

2

Tota

l A

ssets

273,5

23.7

6

110,9

68.8

4

563,0

95.2

0

201,6

61.5

1

Sr.

No.

ST

AN

DA

LO

NE

CO

NS

OLID

AT

ED

Note

:

1.

Fig

ure

s in

Rs L

akh

s

2.

10 L

akhs =

1m

illio

n

3.

Exchan

ge r

ate

assum

ed :

Rs77.3

1 =

1 E

uro

30

Q4F

15

/ F

ull Y

ea

r F

15

Perf

orm

an

ce

– D

isc

ussio

n

Sta

nd

alo

ne:

•W

ith India

n O

EM

s b

ein

g k

ey c

usto

mers

, gro

wth

has b

een a

challe

nge in t

he r

ecent

past,

•In

Q4F

15,

our

key c

usto

mers

shra

nk b

y 7

.5%

, M

CIE

sta

ndalo

ne r

evenues d

eclin

ed b

y 7

.4%

•In

F15,

Pro

duction a

t our

Key C

usto

mers

shra

nk b

y 1

1%

, and M

ahin

dra

CIE

revenues s

hra

nk b

y 3

%

•T

he

dro

p in

EB

ITD

A%

is larg

ely

du

e t

o t

he d

rop

in

Re

ve

nue

s.

Co

ns

oli

da

ted

:

MF

E

•E

uro

pean C

V M

ark

et

continues t

o b

e u

neven b

ut

pro

fita

bili

ty t

urn

aro

und r

em

ain

s o

n t

rack.

•S

hort

term

focus o

n c

ost

reduction:

Headcount, D

ow

ntim

e,

Pow

er

subsid

y,

Pro

cure

ment

& S

ale

s p

rice a

nd

pro

du

ctivity im

pro

ve

me

nts

:

•F

irst

phase o

f tu

rnaro

und b

y d

edic

ate

d t

urn

aro

und t

eam

com

ple

ted;

a n

ew

forg

ings m

anagem

ent

team

takin

g o

ver

•T

he n

ext

phase t

o f

ocus o

n im

pro

vin

g p

rofita

bili

ty b

y o

ptim

izin

g p

roduct-

pro

cess-

loca

tio

n c

om

bin

atio

n

Meta

lcaste

llo

•Top-lin

e r

em

ain

s a

concern

due t

o c

ontinued d

eclin

e in t

he E

uro

pean O

ff r

oad M

ark

et

•E

ffort

s t

o d

ivers

ify m

ark

ets

and d

evelo

p n

ew

pro

duct

mark

ets

underw

ay w

ith t

he h

elp

of

CIE

•S

hort

term

focus o

n c

ost

reduction ;

one t

ime c

osts

inclu

din

g r

edundancy c

osts

depre

ssin

g p

rofita

bili

ty t

his

financia

l year

•M

ost

of th

e o

rganiz

ational re

str

uctu

ring &

headcount

reduction h

as b

een c

om

ple

ted

CIE

Fo

rgin

gs E

uro

pe (

Sp

ain

+ L

ith

uan

ia)

•E

uro

pe

an C

ar

ma

rke

t co

ntin

ue

s t

o s

ho

w s

tea

dy g

row

th

•H

igh

pro

fita

bili

ty le

ve

ls b

ein

g m

ain

tain

ed

31

Co

nte

nts

•K

ey M

essa

ge

s

•A

llia

nce

be

twe

en

CIE

& M

ah

ind

ra G

rou

p

•A

bo

ut M

ah

ind

ra C

IE

•M

ark

et O

verv

iew

•P

erf

orm

an

ce

►S

trate

gy &

Ris

k M

an

ag

em

en

t •

Ab

ou

t C

IE A

uto

mo

tive

32

Ma

hin

dra

CIE

Str

ate

gy

E

xe

cu

tive S

um

mary

•In

dia

−M

ark

et p

lus g

row

th

−O

pe

ratio

na

l op

tim

iza

tio

n to

im

pro

ve

ma

rgin

s

−In

itia

te n

ew

pro

du

cts

& c

usto

me

rs

•M

ah

ind

ra E

uro

pe

(

Tru

cks &

Off

Ro

ad

/ G

erm

an

y +

UK

+ Ita

ly/ M

FE

+ M

C)

−T

urn

aro

un

d

−D

eve

lop

re

sili

en

ce

to

fa

ce

d

rop

in m

ark

et w

ith

ou

t

dro

p in

ma

rgin

s

•C

IE F

org

e E

uro

pe

(

Cars

/ S

pain

+ L

ithuania

/ C

IEF

)

−S

usta

in p

erf

orm

an

ce

•O

ve

rall

:

−C

on

tro

l ca

pe

x

−F

ocu

s o

n d

eb

t re

du

ctio

n

−A

ch

ieve

ke

y p

erf

orm

an

ce

no

rms

viz

.

E

BIT

%, R

ON

A, D

ebt/

EB

ITD

A, F

CF

/EB

ITD

A,

NO

A/E

BIT

DA

Phase 1

: 2

01

4-2

017

“C

on

so

lid

ate

”

Phase 2

: 2017-2

020*

“E

xp

an

d”

•In

dia

−C

apex for

gro

wth

−C

ap

acity E

xp

an

sio

n +

Ne

w p

rod

ucts

&

cu

sto

me

rs –

org

an

ica

lly &

th

rou

gh

M&

A

−E

ntr

y in

to p

lastics a

nd

/or A

lum

inu

m

co

mp

on

en

ts

•E

uro

pe

−S

ele

ctive C

apex

−R

ed

efin

e p

rod

uct p

ort

folio

at M

FE

& M

C

and o

ptim

ize

pla

nt lo

ca

tio

ns

•O

the

rs

−E

ntr

y in

to th

e A

SE

AN

ma

rke

t via

M&

A :

MC

IE to

drive

CIE

’s g

row

th in

Asia

−C

IE’s

re

ma

inin

g fo

rgin

g p

lan

ts in

Bra

zil,

Me

xic

o &

Ch

ina

to

me

rge

with

MC

IE

•O

ve

rall

:

−G

row

−C

on

tin

ue

to

be

gu

ide

d b

y C

IE’s

perf

orm

an

ce n

orm

s

MF

E: M

ahin

dra

Forg

ings E

uro

pe; M

C:

Meta

lcaste

llo;

CIE

F :

CIE

Forg

ings

RO

NA

: R

etu

rn o

n N

et A

ssets

; F

CF

: F

ree C

ash F

low

; N

OA

: N

et O

pera

ting a

ssets

* -

Dependin

g o

n a

vaila

bili

ty o

f M

&A

pro

posals

, P

hase 2

can

overlap w

ith P

hase 1

.

33

Ph

as

e 1

Str

ate

gy –

In

dia

F

oc

us :

Mark

et

plu

s g

row

th &

op

era

tio

nal o

pti

mis

ati

on

Ba

ck

gro

un

d

•In

dia

busin

esses a

re o

pe

rati

on

all

y s

ou

nd

•N

o c

ha

ng

e i

n m

an

ag

em

en

t after

CIE

-Mahin

dra

Alli

ance

•W

ith India

n O

EM

s b

ein

g k

ey c

usto

mers

, g

row

th h

as b

een

a c

hallen

ge

in the r

ecent

past

•O

ur

key c

usto

me

rs (

India

n O

EM

s)

are

ca

utio

usly

op

tim

istic

of

fu

ture

gro

wth

•E

xport

com

petitiven

ess o

f In

dia

n c

om

panie

s h

igh

Mark

et

Ou

tlo

ok

•T

he India

n a

uto

motive m

ark

et

is e

xp

ecte

d t

o g

row

fro

m 3

.7 t

o 1

0 m

ill

un

its in 1

0 y

ea

rs

Str

ate

gy

•M

ark

et

plu

s g

row

th

•In

dia

n O

EM

s lik

e M

ahin

dra

& T

ATA

Moto

rs in

tro

ducin

g n

ew

models

to s

pur

gro

wth

•F

ocus o

n e

xport

s e

.g.

Forg

ings

•In

tro

du

ce p

rod

ucts

fro

m C

IE S

tab

le &

Exp

lore

‘W

este

rn

OE

MS

’ – r

esults b

y 2

018

•O

ptim

ize c

osts

& o

pera

tions -

keep im

pro

vin

g m

arg

ins

Fo

rgin

gs

Casti

ng

s

Sta

mp

ing

s

Gears

Mag

neti

cs

34

Ph

as

e 1

Str

ate

gy –

In

dia

N

ew

Pro

du

cts

bein

g e

xp

lore

d a

lon

g w

ith

CIE

ass

ista

nce

Pro

sp

ecti

ve N

ew

Pro

du

cts

Carg

o A

ssem

bly

Fu

el T

ank A

ssem

bly

ST

A A

ssem

bly

LC

A A

ssem

bly

Tu

rbo m

anifold

Sta

mpin

gs

Forg

ings

Castings

Bala

ncer

Shaft

Assem

bly

35

Ba

ck

gro

un

d

•D

ow

ntu

rn o

f 2008

-09 h

andle

d w

ell

•O

pera

tional effic

iency

wors

ened w

hen

th

e m

ark

et

suddenly

ram

ped b

ack in 2

011

-12

•P

rob

lem

s m

ore

‘in

tern

al’

Mark

et

Ou

tlo

ok

•E

uro

pean C

V m

ark

et

rem

ain

s u

nc

ert

ain

,

w

e e

xpect

truck m

ark

et

to b

e s

table

Str

ate

gy

Phase I

(Oct1

3 t

o D

ec14):

•D

edic

ate

d ‘

Tu

rnaro

un

d’

Man

ag

em

en

t T

eam

•S

hort

term

focus o

n c

ost

reduction –

H

ea

dco

un

t, D

ow

ntim

e,

Po

we

r su

bsid

y,

Pro

cu

rem

en

t &

Sa

les p

rice

an

d p

rod

uctivity im

pro

ve

me

nts

Phase II

(D

ec14 o

nw

ard

s):

•D

ed

ica

ted

‘F

org

ing

’ M

an

ag

em

en

t T

eam

-

CIE

’s g

loba

l for

ging

s he

ad J

ustin

o N

amun

o in

cha

rge

•E

xp

lore

syn

erg

ies w

ith

CIE

Forg

ing

s

•S

trate

gic

appro

ach:

Pro

fita

bili

ty im

pro

vem

ent

via

optim

izin

g p

roduct-

pro

cess-location c

om

bin

ation

−JE

CO

(appro

x.

Euro

35 M

n s

ale

s)

clo

sed,

pro

ducts

tra

nsfe

rred t

o o

ther

Germ

an p

lants

−N

ew

pro

ducts

lik

e tru

ck c

rankshafts o

r car

part

s t

o b

e e

xplo

red

•E

nsure

pro

fita

bili

ty is m

ain

tain

ed e

ven if

mark

et

volu

mes a

re v

ola

tile

•G

oal: M

atc

h h

isto

ric h

igh

est

EB

ITD

A%

ach

ieve

d b

y M

FE

pre

Leh

man

cri

sis

in

2008

Ph

as

e 1

Str

ate

gy –

Mah

ind

ra F

org

ing

s E

uro

pe

F

oc

us :

Tu

rnaro

un

d b

y i

mp

rovin

g o

pera

tio

ns

36

Ph

as

e 1

Str

ate

gy –

Meta

lca

ste

llo

F

oc

us :

Tu

rnaro

un

d b

y i

mp

rovin

g v

olu

mes &

marg

ins

Ba

ck

gro

un

d

•E

xcelle

nt

opera

tions

•S

teady d

rop in v

olu

mes o

ver

the y

ears

leadin

g t

o

dro

p in E

BIT

DA

%

•P

rob

lem

s m

ore

‘exte

rnal’

Mark

et

Ou

tlo

ok

•T

he O

ff R

oad

mark

et

has d

eclin

ed

in t

he last

few

years

and t

he t

rend c

ontinues

Str

ate

gy

•R

educe C

ost

& C

apex –

headcount

reduction,

incre

ased p

roductivity,

insourc

ing o

f som

e o

pera

tions,

purc

hasin

g s

ynerg

ies w

ith C

IE,

invento

ry o

ptim

ization &

dro

ppin

g o

f unpro

fita

ble

part

s

•E

xplo

re n

ew

cu

sto

mers

in

exis

tin

g s

eg

men

ts –

Agricultura

l, E

art

hm

ovin

g &

Defe

nse

•E

nte

r n

ew

mark

et

seg

men

ts –

Auto

motive,

Marine

•Im

pro

ve v

olu

me a

nd m

arg

ins

37

Ris

ks &

Mit

iga

tio

nM

ark

et

slo

wd

ow

n in

bo

th In

dia

& E

uro

pe is t

he k

ey r

isk

Slo

wd

ow

n i

n I

nd

ia:

India

n a

uto

mark

et

especia

lly India

n O

EM

S h

ave b

een s

low

ing d

ow

n

−E

xplo

ring n

ew

pro

ducts

& m

ark

ets

as a

counte

r

Imp

act

of

un

cert

ain

ty i

n t

he E

uro

zo

ne

: E

uro

pe f

acin

g u

ncert

ain

econom

ic e

nvir

onm

ent

−M

onitoring the s

ituation s

o that

corr

ective a

ctions a

re im

media

tely

taken in r

espon

se t

o

any d

em

an

d m

ovem

ents

Inte

gra

tio

n:

Cultura

l diffe

rences d

uring inte

gra

tion o

f M

CIE

with C

IE s

yste

m

−C

IE c

hose to invest in

MC

IE b

usin

esses a

s there

was c

ultura

l sim

ilarity

and the r

isk o

f

cultura

l m

ism

atc

h is low

Tech

no

log

ical

ch

an

ges

: Lig

hte

r w

eig

ht auto

com

ponents

and g

reate

r usage o

f

Alu

min

um

an

d P

lastics m

ay s

ub

stitu

te o

ur

pro

du

cts

−In

novations focused a

round lig

hte

r w

eig

ht

com

pon

ents

and n

ew

er

mate

rials

Ab

ilit

y t

o s

erv

ice d

eb

t: H

igh d

ebt

subje

ct to

fin

ancia

l covenants

.

−F

ore

cast cash r

equir

em

ents

of

the C

om

pany a

re c

losely

monitore

d a

long w

ith a

ctu

al

an

d p

roje

cte

d a

dh

ere

nce

to

co

ve

na

nts

38

Co

nte

nts

•K

ey M

essa

ge

s

•A

llia

nce

be

twe

en

CIE

& M

ah

ind

ra G

rou

p

•A

bo

ut M

ah

ind

ra C

IE

•M

ark

et O

verv

iew

•P

erf

orm

an

ce

•S

trate

gy &

Ris

k M

anagem

ent

►A

bo

ut

CIE

Au

tom

oti

ve

39

CIE

Au

tom

oti

ve

: In

tro

du

cti

on

G

lob

al A

uto

-co

mp

on

en

t M

ult

inati

on

al

Sh

are

ho

ldin

g

31

/12

/20

14

§Fo

cuse

d o

n a

uto

mo

tiv

e s

ect

or.

§G

lob

al fu

ll s

erv

ice

su

pp

lie

r fo

r co

mp

on

en

ts a

nd

sub

ass

em

bli

es.

*

§Li

ste

d o

n M

ad

rid

an

d M

um

ba

i S

tock

Exch

an

ge

Ma

rke

ts.

§P

rofe

ssio

na

l h

igh

le

ve

l m

an

ag

em

en

t te

am

wit

h f

ull

com

mit

me

nt

on

co

rpo

rate

go

ve

rna

nce

.

CIE

AU

TO

MO

TIV

E i

s a

n i

nd

ust

ria

l g

rou

p

spe

cia

lise

d in

ma

na

gin

g h

igh

va

lue

-

ad

de

d p

roce

sse

s:

*Ad

ditio

na

lly C

IE A

uto

mo

tive

Gro

up

in

teg

rate

s a

Sm

art

In

no

va

tio

n p

roje

ct ca

lled

Do

min

ion

Corp

ara

cio

n

Gesta

mp

S.L

., 2

2.9

%

Mahin

dra

&

Mahin

dra

, 12.4

%

Managem

ent,

12.0

%

Elid

oza

Pro

mocio

n

De

Em

pre

sas,

9.6

%

Oth

ers

, 43.1

%

Key F

acts

Sale

s

:

Euro

2.2

B

Em

plo

yees

:

20000

Pla

nts

: 8

0

Con

tine

nts

: 4

R&

D C

ente

rs

: 7

40

CIE

Au

tom

oti

ve

: Te

ch

no

log

ies

Pre

sen

t acro

ss m

ult

iple

tech

no

log

ies in

all g

eo

gra

ph

ies

Off

eri

ng

a r

an

ge

of

dif

fere

nt

tech

no

log

ies

ke

y

Au

tom

oti

ve

ge

og

rap

hic

al

ma

rke

ts…

…E

na

bli

ng

th

e s

ele

ctio

n o

f th

e t

ech

no

log

y t

ha

t

fulf

ills

be

tte

r cu

sto

me

rs n

ee

ds.

…A

llo

win

g C

IE t

o f

ocu

s in

ve

stm

en

ts o

n w

inn

ing

tech

no

log

y a

ny

tim

e.

…A

nd

at

the

sa

me

tim

e p

roje

ctin

g C

IE a

s a

Po

we

r

tra

in p

rod

uct

s w

orl

dw

ide

le

ad

er.

41

CIE

Au

tom

oti

ve

: P

erf

orm

an

ce

His

tory

S

us

tain

ab

le &

Pro

fita

ble

Gro

wth

His

tory

Gro

wth

: 5

0%

Org

an

ic +

50%

Ac

qu

isit

ion

s

Net

Fin

an

cia

l D

eb

t in

lo

w levels

(vs.

EB

ITD

A)

(*)

Ne

t F

ina

nci

al

De

bt

= N

FD

= D

eb

t w

ith

ba

nks

an

d

oth

er

fin

an

cia

l in

stit

uti

on

s –

Ca

sh a

nd

eq

uiv

ale

nts

,

EB

ITD

A: N

et

Op

era

tin

g I

nco

me

+ D

ep

reci

ati

on

.

CA

GR

(C

om

po

un

d A

nn

ua

l G

row

th R

ate

) (*

) F

rom

20

06

to

20

14

, p

rofo

rma

va

lue

ca

lcu

late

d b

y d

ed

uct

ing

tu

rno

ve

r o

f d

iese

l o

il u

sed

fo

r b

len

din

g.

(*

*)

EB

ITD

A:

Ne

t O

pe

rati

ng

In

com

e +

De

pre

cia

tio

n.

42

CIE

: D

ive

rsif

ica

tio

n

A E

uro

2.2

B c

om

pan

y d

ivers

ifie

d a

cro

ss g

eo

gra

ph

ies &

cu

sto

mers

Sale

s b

y G

eo

gra

ph

ies (

2014)

Sale

s b

y C

usto

mers

(2014)

Bra

zil

13%

Asia

13%

Euro

pe

54%

Naft

a

20%

43

CIE

: D

iffe

ren

tiato

rs

A u

niq

ue b

us

iness m

od

el

geare

d t

o g

en

era

tin

g s

ha

reh

old

er

retu

rns

43

*

*CIE

mo

de

l fo

cu

se

s o

n e

ve

ry p

lan

t b

ein

g p

rofita

ble

& e

ntr

ep

ren

eurial a

nd

lo

w c

orp

ora

te o

ve

rhe

ad

s

Note

– R

ON

A:

Retu

rn o

n N

et A

sse

ts, F

CF

: F

ree

Ca

sh

Flo

w a

fte

r C

ap

ex, N

OA

: N

et

Op

era

tin

g A

sse

ts

*

BS

E:

532756

NS

E:

MA

HIN

DC

IE

ISIN

: IN

E536

H01010

Dis

cla

ime

r

Ma

hin

dra

CIE

Auto

motive

Lim

ite

d,

here

in r

efe

rred

to a

s M

CA

L p

rovid

es a

wid

e a

rra

y o

f p

rese

nta

tio

ns a

nd r

epo

rts,

with t

he c

ontr

ibutio

ns o

f va

riou

s p

rofe

ssio

na

ls.

The

se p

resenta

tio

ns a

nd r

epo

rts a

re f

or

info

rmatio

na

l p

urp

ose

s a

nd

do n

ot

co

nstitu

te a

n o

ffe

r to

buy o

r se

ll any s

ecu

rities m

entio

ne

d t

here

in.

Th

ey d

o n

ot

purp

ort

to b

e a

com

ple

te

descrip

tion o

f th

e m

ark

ets

co

nd

itio

ns o

r d

eve

lopm

ents

refe

rre

d t

o in t

he m

ate

ria

l. W

hile

utm

ost

care

has b

een t

ake

n

in p

rep

arin

g t

he a

bo

ve

, w

e c

laim

no r

espo

nsib

ility

for

their a

ccura

cy.

We s

hall

not

be lia

ble

for

any d

ire

ct

or

indire

ct

losses a

risin

g f

rom

th

e u

se t

here

of

and t

he v

iew

ers

are

req

ueste

d t

o u

se t

he i

nfo

rmatio

n c

onta

ined h

ere

in a

t th

eir

ow

n r

isk.

These p

resenta

tions a

nd r

eport

s s

hould

not

be r

epro

duced,

re-c

ircula

ted,

publis

hed in a

ny m

edia

, w

ebsite

or

oth

erw

ise

, in

any f

orm

or

ma

nn

er,

in p

art

or

as a

wh

ole

, w

ith

ou

t th

e e

xp

ress c

onse

nt

in w

ritin

g o

f M

CA

L o

r its

su

bsid

iari

es.

Un

less s

pecific

ally

note

d,

MC

AL

is n

ot

respo

nsib

le f

or

the c

onte

nt

of

these p

resenta

tio

ns a

nd/o

r th

e

opin

ions o

f th

e p

rese

nte

rs.

Indiv

idua

l situ

atio

ns a

nd lo

cal p

ractice

s a

nd s

tand

ard

s m

ay v

ary

, so v

iew

ers

and o

thers

utiliz

ing

info

rmatio

n c

onta

ined w

ith

in a

pre

senta

tio

n a

re f

ree t

o a

do

pt

diffe

ring

sta

nd

ard

s a

nd a

ppro

ach

es a

s t

hey

se

e

fit.

Yo

u

ma

y

not

repa

ckag

e

or

se

ll th

e

pre

se

nta

tio

n.

Pro

du

cts

and

n

am

es

me

ntio

ne

d

in

mate

ria

ls

or

pre

se

nta

tio

ns

are

th

e

pro

pe

rty

of

their

respective

o

wn

ers

and

the

me

ntio

n

of

them

does

not

co

nstitu

te

an

end

ors

em

ent

by M

CA

L.

Info

rmatio

n c

onta

ined

in a

pre

senta

tio

n h

oste

d o

r pro

mote

d b

y M

CA

L i

s p

rovid

ed

“as

is”

with

ou

t w

arr

anty

of

any k

ind,

eith

er

exp

resse

d o

r im

plie

d,

inclu

din

g a

ny w

arr

anty

of

merc

hanta

bili

ty o

r fitn

ess f

or

a

part

icu

lar

purp

ose.

MC

AL a

ssum

es n

o l

iab

ility

or

respo

nsib

ility

fo

r th

e c

onte

nts

of

a p

rese

nta

tio

n o

r th

e o

pin

ions

exp

resse

d b

y t

he p

rese

nte

rs. A

ll e

xp

ressio

ns o

f o

pin

ion a

re s

ubje

ct to

ch

an

ge

with

ou

t n

otice.

44

Th

an

k y

ou

vis

it u

s a

t m

ah

ind

ra-c

ie.c

om