Subros LimitedInvestor Presentation

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Updated December 2015

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Contents

Industry Overview

Introduction to Subros Limited

Financial Information

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Source : ACMA(„000 units)

PV : CAGR 2011-15 : 2%

CV (SCV & LCV): CAGR 2011-15 : -2%

Auto industry in India

Source : IBEF

Due to infrastructure development focus of the Government in India, Vehicle sales potential for both (Car and Commercial vehicle ) segment is very high.

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CAGR : 11%

Turnover includes supply to OEMs, aftermarket Sales and Exports

Automotive component industry in India

Source : ACMA

Impact of Make in India movement of the government will be high in localisation level

achievement and emerging need of IPO (International Procurement Office) i.e.

source parts from India for overseas company use is high potential area for Auto

Component industry

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Introduction to Subros Limited

Subros : An Update

R&D

Sanand

Pune

Manesar

Die Casting

Noida

Established in 1985, Subros is the Largest AC company in India.

A Joint Venture company between

ChennaiTool Engineering Centre

Product Profile

Capacity 1.5M/Yr ISO 14001,TS 16949,OHSAH 18001 No. of Employee 1950nos

Board

Standing L to R-Row - 1 (Bottom)-MR. G.N. MEHRA, MR. K. R RAMAMOORTHY, MR. RAMESH SURI, MR. KENICHI AYUKAWAROW -2-MR. SHAILENDRA SWARUP, DR. JYOTSNA SURI, MS. SHRADHA SURI MARWAH, MRS. MEENA SETHI, (MR. KAJITA –ALTERNATE DIRECTOR TO MR. MAKINO)ROW-3- MR. D M REDDY,MR. M A PATHAN, MR. HANUWANT SINGH, MR.HEMANT AGARWAL (DY COMPANY SECRETARY), MR. MANOJ SETHI- SVP (FINANCE, HR & IT)

Management Team

Our Employees , Our Strength

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“To be the world-class Auto-Air

Conditioning and Thermal Engineering

System Manufacturer having Global

Competitiveness”

Guiding principles

"To maintain Market Leadership

through Total Customer

Satisfaction in terms of

Quality, Cost & Speed”

Vision Mission

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Customers Our Presence

Car Segment

Commercial Segment

Major milestones

Transformation from CKD* assembly in 1985 to “Full Systems developer in Thermal Engineering”

* CKD - Completely Knocked down

1985 1986 1995 2000 2001 2002 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Set up of Noida

Plant-1

SAP Implementation

Launch of MPS-Maruti

Production system for

manufacturing

excellence

Set up of Noida Plant-2

Start of Operations at

Manesar Plant

MF Condenser plant

Squeeze Die

Casting Plant

Pune Plant

Started

Start of Denso Subros

Engineering CentreEstablished in 1985

Completion of 25 years Capacity 1 Million AC kits

Capacity 1.2 Million AC

kits

Localisation of RS

Evaporator

Capacity 1.5 Million AC kits

Inauguration of Chennai plant

Launch of transport

Refrigeration System

Bus AC

Development

Inception of STEC

(Subros Tool

Engineering

Centre)

Introduction of New Customer "Renault

Nissan".

Development of new Product (10SL09)

compressor. Chennai Plant becomes

operational

New Tool Room being set up at Noida

Subros celebrated 30 Years of partnership

Radiator entrustment production started for Denso

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The transformation has been a meticulous identification, evaluation & mitigation of business risks for growth

Journey of Transformation

1. Single Plant ->> Multiple Plant structure

2. Capacity enhancement from 15,000 kits to 1.5 Mn

AC kits

Entry into Commercial Vehicle AC, transport refrigeration

systems, rail AC, engine cooling & aftermarket segment

1. Strong local designing capabilities - design JV in

India with Denso

2. Established R & D and testing facilities

3. Successful set up of tooling facility for captive &

customer tooling requirement

Successful launch of ERP system. Ranked among “Top 5

IT User companies in manufacturing segment in India” at

IT user Awards 2004 by Nasscom and ET

Capacity constraint

Skewed customer

profile

Limited product

portfolio

Technology

obsolescence

Internal controls /

governance

Threat Mitigation

Established supplier of OEMs like Maruti, Tata, Force

motors and M&M with market share of 40%

Cost rationalization through localization of high value

imported parts and VA-VE activitiesThreat of competition

2014-15

2013

MSIL Gold Trophy for overall performance.

MSIL Shield for System Audit Rating.

MSIL Shield for Focused Cost Down.

MSIL Certificate for Inner Part Localization.

The Economics Times Gold Award for India Manufacturing

Excellence.

Frost & Sullivan ratings of Indian Manufacturing Industry for sustainability

Adaptation and no. 1 in Innovation and no. 3 in Customer focus.

2014

MSIL Gold Trophy for overall performance.

MSIL shield for quality improvement

MSIL shield for system audit rating

Certificate for inner part localization

TCM-Cll Level V Ranking(2013)

2015

MSIL Shield for overall excellence

Certificate for superior performance in the field of "Design & Development"

Certificate for superior performance in the field of

"Safety"

Certificate for superior performance in the field of

"Spares schedule adherence"

ACMA Silver trophy for Manufacturing Excellence

Silver Trophy for ACMA HR Excellence Award in Special

Category 2015

Awards and Recognition

House of Quality

Quality Assurance Model

• NPD Quality

• Tier 2 Quality

• Inhouse Quality

• Field Quality1. C

ust

om

er

Re

qu

irem

en

ts

3. Technical Requirements

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Manufacturing Infrastructure

Compressor Assembly

(Clean Room)Condenser Assembly

RS Evaporator Line

Robotic Vision

inspection

Shop Floor Helium leak test

machine

Nocloc brazing furnace

for CondensorInjection moulding machine

Squeeze & vacuum pressure

die casting machine

Robotic manipulator

extractor

Robotic surface treatment

machine

HVAC assembly line Tube liquid line

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Product development infrastructure – R&D and tool

room

System Calorimeter Vibration Resistance

Testing

Environment Test ChamberComputer aided

engineering (CAE)

CAD-CAM Facility

CNC VMC VF6

Die spotting press

Corporate social responsibility

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Some examples of the work done by employee

teams at Subros

• Subros is a part of the Green Delhi campaign and sponsors trees

and green areas across the city. This initiative has now been

extended to all metros

• Clothes & Books distribution to under privileged people residing

in slum areas in Delhi NCR is conducted by Women Cell ‘Jagriti’ of

Subros

• Waste elimination is considered equally important as per Subros

environment policy. Mutual benefits are earned by implementing

waste recycling projects.

• Periodic activities are also been conducted every year in-line

with organization’s policy of continuously contributing to the

society. For e.g. blood donation camps, tree plantation etc.

Subros follows policies at company level, plant level and Individual level to

identify and execute CSR projects

Subros women committee

(Jagriti) clothes donating drive Blood donation camp

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Financial Information

9.61%

11.22% 11.42%12.46%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

FY13 FY 14 FY 15 FY16 Projected

Operating Profit %

14361314 1333

1480

500

1000

1500

2000

FY13 FY 14 FY 15 FY16 Projected

Gross Sales

Financial Performance

INR Crores

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11% growth

318 334 357 365

309

377

-

100

200

300

400

Q on Q Sales Trend

Q1-15

Q1-16

Q2-15

Q2-16

Q3-15

5% 2% 22%

30% improvement

74.62%71.07% 69.72% 67.18%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

FY13 FY 14 FY 15 FY16 Projected

Material Cost %age

10% improvement

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Financial Performance

• Major Focus Area is to realise the investment already done.

• All investment for infrastructure buildup to meet customer demand up to 2017 is already completed.

• Further, all future investment decisions are link to ROCE.

10.43

8.86 9.09

11.74

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

FY13 FY 14 FY 15 FY16 Projected

ROCE

2.4

2 1.922.18

0

0.5

1

1.5

2

2.5

3

FY13 FY 14 FY 15 FY16 Projected

Investment to Sales Ratio

32% improvement

The Subros advantage

Market leader in auto air conditioning (40% market share) for Car Market and

Commercial Vehicle segment

Strong lineage, experienced management and strong brand equity.

Strong partnership with foreign collaborators i.e. Suzuki Motor Corporation

(SMC), Japan and Denso Corporation (Denso) each hold 13% stake in Subros Limited.

Established supplier for Maruti, M&M, Tata Force Motor, Renault Nissan and Indian

Railways.

Strong technical collaboration with global leader in automotive air-conditioning i.e.

Denso, Japan. State of art R&D and Testing facilities. Strong local design capabilities

with the setup of Denso Subros engineering services center -Subros’ design JV with

Denso

High capability for in-house tool manufacturing allowing for vendor up gradation, in

house tool development as well as revenue diversification.

All India integrated infrastructure and network for manufacturing, R&D, New Product

Development (NPD) and after sales support

Excellence in ERP systems (SAP)

Committed vendor base

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Thank You

www.subros.com