Metair Investments Limited · JSE:MTA
Metair Investments — H1 2015 Earnings Presentation
38 slides from Metair Investments's earnings presentation, Aug 19, 2015
Slide 1: Interim Results for the Six Months Ended 30 June 2015
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2015 19TH AUGUST 2015 1 | AUGUST 2015
Slide 2: Agenda
AGENDA • Commentary and results overview PART 1 • Vision and strategy • Financial review PART 2 • Mutlu financial review • Operational review PART 3 • Prospects 2 |
Slide 3: Commentary & Results Overview
COMMENTARY & RESULTS OVERVIEW 3 |
Slide 4: Commentary & Results Overview
COMMENTARY & RESULTS OVERVIEW • Good performance from Turkey OE • Good performance from Turkey Aftermarket Main trading • Stable OE labour environment is SA observations • Good performance from Romania Aftermarket • Preparation in SA for new vehicle launch from major customer • Exports from Turkey t
Slide 5: Vision & Strategy
VISION & STRATEGY 5 |
Slide 6: Vision & Strategy
VISION & STRATEGY • “To generate value for all our stakeholders by managing and controlling businesses that through manufacturing, logistical and marketing excellence, Vision deliver quality, cost-competitive products to our customers in a sustainable manner” • Continue to target balance in the busi
Slide 7: Performance Against 3 x 50 Strategy (Internationalisation)
PERFORMANCE AGAINST 3 X 50 STRATEGY (INTERNATIONALISATION) Jun-14 Jun-15 OE Market 49% 50% 42% 44% 46% 48% 50% 52% 54% 56% 58% Aftermarket 51% & Non-Automotive 50% 42% 44% 46% 48% 50% 52% 54% 56% 58% 53% Batteries 54% 42% 44% 46% 48% 50% 52% 54% 56% 58% 7 |
Slide 8: Performance Against 3 x 5 Strategy (Globalisation)
PERFORMANCE AGAINST 3 X 5 STRATEGY (GLOBALISATION) • Established R & D Centre in Turkey Sale of spare • Established Metair International Battery (MIB) structure capacity • Met 2nd generation specification for AGM Start/Stop batteries initiatives • Sold ⅓ of spare capacity (Renault, Honda, Ford, Toyo
Slide 9: Automotive Battery Production & Capacity Utilisation
AUTOMOTIVE BATTERY PRODUCTION & CAPACITY UTILISATION 2014 Production in units 2014 Capacity in units 6.0 5.7 5.0 4.0 3.4 3.0 2.8 2.4 2.1 2.0 2.0 1.0 0.0 MUTLU FNB ROMBAT 9 |
Slide 10: Automotive Battery Production & Capacity Type
AUTOMOTIVE BATTERY PRODUCTION & CAPACITY TYPE 12.0 10.9 million 10.9 million 11.0 Remaining 1.6 million 0.9 million Start/Stop capacity 10.0 Remaining 9.0 conventional 1.5 million capacity 1.8 million 8.0 0.7 million 7.5 million Units in millions 0.3 million 7.0 6.0 5.0 7.5 million 8.5 million 69% 4
Slide 11: Performance Against 3 x 5 Strategy (Globalisation)
PERFORMANCE AGAINST 3 X 5 STRATEGY (GLOBALISATION) Strategic Stakeholder consultation on inter alia: delivery • Internationalise complete business execution • Internationalise battery business alternatives • Segmental optimisation of the business 11 |
Slide 12: Financial Review
FINANCIAL REVIEW 12 |
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS ITEM June 2014 June 2015 Mvt. R’million R’million Revenue 3 235 3 543 9% Income EBITDA 485 502 4% Statement Operating profit 319 346 8% Operating profit margin 9.9% 9.8% -0.1% Profit after tax 251 236 -6% • Revenue grew 9%, just more than half from battery products • Pleasing re
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS ITEM June 2014 June 2015 Mvt. R’million R’million Attributable profit 235 220 -6% Shareholder Earnings per share (cents) 120 112 -7% performance Weighted avg number of shares ('000) 195 099 197 066 1% Headline earnings per share 120 111 -8% Net debt (1 438) (1 684) 17% Dividend
Slide 15: Income Statement
INCOME STATEMENT June 2014 June 2015 ITEMS R’million R’million Revenue 3 235 3 543 Operating Profit Gross profit 722 738 Other operating income 68 58 Distribution, administrative and other expenses (471) (450) Operating profit 319 346 June 2014 June 2015 ITEMS R’million R’million Net interest expens
Slide 16: Balance Sheet - Assets
BALANCE SHEET - ASSETS Dec-14 Jun-14 Jun-15 ITEM R’million R’million R’million Non-current assets 4 394 4 402 4 145 Non-Current Property, plant and equipment 2 855 2 886 2 746 Assets Intangible assets 1 270 1 263 1 148 Investment in associates 252 215 246 Deferred tax 17 38 5 Current assets 3 541 3
Slide 17: Balance Sheet - Equity and Liabilities
BALANCE SHEET - EQUITY AND LIABILITIES Dec-14 Jun-14 Jun-15 ITEM R’million R’million R’million Total equity 4 239 3 964 3 988 Non-current liabilities 2 323 869 2 360 Equity & non-current Borrowings 1 671 214 1 752 liabilities Post employment benefits 110 104 106 Deferred taxation 375 383 339 Deferre
Slide 18: Capital and Debt Structure
CAPITAL AND DEBT STRUCTURE ITEM Dec-14 Jun-14 Jun-15 Capital Debt*:equity 42% 44% 47% structure Net debt**:equity 31% 37% 43% ITEM Dec-14 Jun-14 Jun-15 Debt 1 267 1 438 1 684 Net debt** (R'million) levels Net debt**:EBITDA 1.09 1.89 1.43 (LTM for interim) • Over time our target structure is c. 25% d
Slide 19: Cash Flow
CASH FLOW Jun-14 Jun-15 ITEM R’million R’million Cash Operating activities generated Profit before taxation 309 327 from operations Non-cash items 170 165 Working capital changes (144) (403) Cash generated from operations 335 89 • Cash generated from operations declined to R 89 million, or 26% of op
Slide 20: Working Capital
WORKING CAPITAL June 2014 June 2015 ITEM R’million R’million Working Inventory 1 385 1 648 capital Trade & other receivables 1 149 1 455 Trade & other payables (excluding Mutlu minority liability in 2014) (688) (869) Total 1 846 2 234 DAYS June 2014 June 2015 Working Inventory 77 84 capital Trade &
Slide 21: Overall Segmental Review (incl. Managed Associate)
OVERALL SEGMENTAL REVIEW (INCL. MANAGED ASSOCIATE) 2 500 1 792 1 977 2 000 1 530 1 568 R'million 1 500 Segmental revenue 1 000 337 402 500 Original equipment Aftermarket Non-auto Jun-14 Jun-15 200 16.0% 183 180 14.0% 14.0% 160 151 126 11.7% 12.0% 140 Segmental 114 11.4% 10.0% 120 R'million 9.9% PBIT
Slide 22: Overall Segmental Review - Export
OVERALL SEGMENTAL REVIEW (INCL. MANAGED ASSOCIATE) 600 544 500 405 400 Export R'million revenue 300 200 55 84 100 28 26 Original equipment Aftermarket Non-auto Jun-14 Jun-15 45 21.6% 22.0% 41 40 20.0% 18.0% 35 14.8% Export 14.1% 27 16.0% 30 14.0% PBIT R'million 25 12.0% 10.9% 20 10.0% 12 7.6% 8.0% 1
Slide 23: Overall Segmental Review - Local
OVERALL SEGMENTAL REVIEW (INCL. MANAGED ASSOCIATE) 2 000 1 893 1 738 1 800 1 600 Local PBIT 1 400 1 162 R‘million 1 200 & margins 986 1 000 800 600 376 400 308 200 Original equipment Aftermarket Non-auto Jun-14 Jun-15 180 16.0% Local OE margin 156 160 14.0% contraction 13.4% 13.3% 140 11.2% 12.0% -
Slide 24: Segmental Analysis – Additional Information
SEGMENTAL ANALYSIS – ADDITIONAL INFORMATION (INCL. MANAGED ASSOCIATE) Auto parts Battery 4 500 3 947 4 000 3 659 2 116 3 500 1 951 (54%) Product 3 000 (53%) R'million split 2 500 2 000 1 500 1 708 1 831 (46%) 1 000 (47%) 500 - Jun-14 Jun-15 SA International 4 500 3 947 4 000 3 659 3 500 1 210 (19%)
Slide 25: Mutlu Financial Review
MUTLU FINANCIAL REVIEW 25 |
Slide 26: Mutlu IFRS Income Statement – Stand Alone Pre-Consolidation
MUTLU ‘IFRS’ INCOME STATEMENT – STAND ALONE PRE-CONSOLIDATION ITEMS June 2014 June 2015 R’million R’million Sales revenue (incl dealer rebates) 843.4 881.5 Cost of sales (659.1) (676.2) Mutlu review Gross profit 184.3 205.3 Gross margin 21.9% 23.3% Operating expenses (excl dealer rebates) (108.8) (1
Slide 27: Operational Review
OPERATIONAL REVIEW 27 |
Slide 28: Combined Battery Volumes
COMBINED BATTERY VOLUMES (FNB, MUTLU & ROMBAT) Actual Actual Automotive Units Original June 2014 June 2015 Equipment Original Equipment 758 409 921 666 market - Local Actual Actual Automotive Units June 2014 June 2015 Aftermarket Aftermarket 1 260 753 1 347 791 - Local 1 016 326 836 546 - Export Tot
Slide 29: Vehicle Production per OEM in South Africa (NAAMSA)
VEHICLE PRODUCTION PER OEM IN SOUTH AFRICA (NAAMSA) Actual Actual OEM 2011 2012 2013 2014 June 2014 June 2015 BMW 52 908 44 229 66 087 71 004 36 855 37 149 MBSA 50 939 61 439 47 189 45 584 5 583 49 152 FMCSA 28 716 51 006 56 923 76 179 32 955 40 029 GM 32 530 38 199 40 019 41 491 21 670 20 493 NISSA
Slide 30: Vehicle Production per OEM in Turkey
VEHICLE PRODUCTION PER OEM IN TURKEY Actual Actual OEM 2011 2012 2013 2014 June 2014 June 2015 OYAK RENAULT 330 994 310 602 331 694 318 246 153 990 167 341 FORD 295 850 272 097 281 287 244 682 109 588 159 441 TOFAŞ 307 788 256 428 244 614 222 807 106 974 136 748 HYUNDAI 90 231 86 976 102 020 203 157
Slide 31: Mutlu Volumes
MUTLU VOLUMES Actual Actual Original Automotive Units June 2014 June 2015 Equipment market Original Equipment 290 531 410 642 - Local Actual Actual Automotive Units June 2014 June 2015 Aftermarket Aftermarket 442 099 533 314 - Local 486 430 254 122 - Export Total AM Volume 928 529 787 436 OE • Ford
Slide 32: Vehicle Production per OEM in Romania
VEHICLE PRODUCTION PER OEM IN ROMANIA YTD Actual YTD Actual OEM 2011 2012 2013 2014 June 2014 June 2015 Renault- Dacia 329 842 304 994 349 276 344 101 183 360 195 545 PSA 137 942 68 160 29 879 37 319 17 819 66 720 Nissan 1 176 38 868 37 930 23 011 14 247 - Total 468 960 412 022 417 085 404 431 215 4
Slide 33: Rombat Volumes
ROMBAT VOLUMES Actual Actual Original Automotive Units June 2014 June 2015 Equipment market Original Equipment 216 266 262 949 - Local Actual Actual Automotive Units June 2014 June 2015 Aftermarket Aftermarket 208 109 225 798 - Local 382 151 457 713 - Export Total Volume 590 260 683 511 OE • PSA and
Slide 34: 2015 Capital Expenditure Commitments
2015 CAPITAL EXPENDITURE COMMITMENTS* GROUP - Approved Sector Expansion Maintenance Total R’000 Efficiency OE 54 710 142 690 197 400 Aftermarket / Non-Auto 30 263 76 461 106 724 Property 2 198 950 3 148 Total 87 171 220 101 307 272 * Includes authorised and committed capex 34 |
Slide 35: Prospects
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Slide 36: Prospects Depend On …
PROSPECTS DEPEND ON … • Model changes and successful launch of new vehicle models Original • Continuation of stable labour environment Equipment (OE) • Continued increased vehicle production in Turkey and Romania • Successful negotiation of new OEM supply projects • European and export demand in win
Slide 37: Q & A
METAIR INVESTMENTS LIMITED automotive | industrial | retail WWW.METAIR.CO.ZA
Slide 38: Disclaimer
DISCLAIMER The information supplied herewith is believed to be correct but the accuracy thereof at the time of going to print is not guaranteed. The company and its employees cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision of this data does