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WABCO Confidential and Proprietary
WABCO INDIA LIMITED
Business Update
WELCOME
July 8, 2016
1
WABCO Confidential and Proprietary
Introduction
P. Kaniappan Managing Director
R.S. Raja Gopal Sastry Chief Financial Officer
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WABCO Confidential and Proprietary
Safe Harbor Statement
3
Statements in this document describing the Company's objectives, projections,
estimates and expectations may be "forward looking statements" within the meaning
of applicable securities laws and regulations. Actual results could differ materially
from those expressed or implied due to many factors. Important factors that could
make a difference to the Company's operations include, among others, economic
conditions affecting demand / supply and price conditions in the domestic and
overseas markets in which the Company operates, changes in the Government
regulations, tax laws and other statutes and incidental factors. The Company does
not undertake any obligation to update such forward-looking statements. All market
and industry data are based on Company estimates.
WABCO Confidential and Proprietary
WABCO INDIA
No.1 Supplier to Indian Market • 1962 : Sundaram Clayton Ltd established (TVS group and Clayton Dewandre, UK : JV)
• 1977 : WABCO acquired Clayton Dewandre
• 2009 : WABCO takes majority control in the brakes division of
Sundaram Clayton Limited - WABCO TVS
• 2011 : WABCO TVS became WABCO INDIA Limited
Well established to serve customers across India
2007
2005
2012
2011
2013
2008
2015 Market leader for more than five decades
Sales of ₹1838 Crores in 2015-16
3,200 employees (>300 engineers)
5 manufacturing sites
– fully aligned to customers’ needs
4
WABCO Confidential and Proprietary
WABCO INDIA Sales Drivers
Utilizing all levers to generate sales growth
• Industry Growth
• Market Outperformance through content increase
OE
• Increase in Vehicle Parc
• New product Introduction
Aftermarket
Exports
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WABCO Confidential and Proprietary
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M&
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V P
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ion
Y-o
-Y%
IIP
Y-o
-Y%
IIP Y-o-Y % M & HCV Production Y-o-Y%
Index of Industrial Production, GDP
Vs M&HCV Production
M&HCV production strongly correlated to macro economic indicators 6
0
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1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
GD
P in
'00
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r IN
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pro
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ctio
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n '0
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No
s
HCV GDP
WABCO Confidential and Proprietary
Commercial Vehicle Legislation Update
Growth opportunities created by convergence of safety legislation
red = in discussion
7
Region Status (April 2016)
2015 2016 2017 2018 2019 2020 2021 2022
100% ABS
EPA 10
100% ABS
trailer: 100% RSS
EURO VI
ABS N3 for
dangerous goods,
M3 tourist coach
ESC M & N > 11.8 t Autom. Driving permissible AEBS
light veh. AEBS V2X / DSRC light vehicles
ESC
AEBS & LDWS M & N > 3.5 t
ABS Agriculture < 60 km/h
Autom. Driving permissible
VRUD
ABS N2 for dangerous goods,
N3 & M3
ABS for heavy trailers
BS IV (EURO IV) nationwide
WABCO Confidential and Proprietary
Global Technology Adoption
Different rates of tech adoption present a rich reservoir of organic growth 8
WABCO Confidential and Proprietary
Differentiated through Sustained
Technology Innovation
The leading record of “industry first” innovations for commercial vehicles
1980’s 2009
2010
1996
2000 2004 2007 2008
2001
2003
2015
Anti-Lock Braking System (ABS)
Traction Control System
Pneumatic Transmission Automation System
Electronically Controlled Air Suspension (ECAS)
Trailer EBS
Electronic Braking System (EBS)
Roll Stability Support (RSS) for Trailers
Integrated Vehicle Tire Monitoring (IVTM TM)
ECAS for automotive
Electronic Stability Control (ESC)
Adaptive Cruise Control
d-compTM Dual Stage Compressor
Trailer EBS-E
Hydraulic Transmission Automation System
New Generation Air Disc Brake
Air System Protector
RSSplusTM Roll Mitigation System
OnGuardTM
Collision Mitigation System
h-compTM High Output Compressor
OptiDriveTM Transmission
Automation System
OnGuardMAXTM
Autonomous Emergency
Braking System
Trailer Telematics
ESCsmartTM
Simulation System
Trailer OptiLoadTM
c-compTM Clutch Compressor
Trailer OptiTurnTM
OnGuardPLUSTM
Advanced Emergency Braking System
TrailerGUARDTM
Telematics
Air Disc Brake MAXXTM22
Trailer Remote Control
TailGUARDTM Rear Blind Spot Detection
FuelGuardTM Electronic Air Processing Unit
e-compTM Electrically Driven Compressor
New Generation Automated Manual Transmission
Improved Integrated Vehicle Tire Monitoring (IVTM TM)
MAXXUSTM Air Disc Brake
OnLaneTM - Lane Departure Warning System
2013
2011 2012
Modular EBS
OptiFlowTM SideWings
EBS for Hybrid Drivelines
mBSP TM Modular Braking Platform
EC-APU Air System Protector
OptiFlowTM Tail
OptiPaceTM
MAXX22TTM Air Disc Brake
OnGuardACTIVETM
Electronic Stability Control (ESC) for Hydraulic Braking
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WABCO Confidential and Proprietary
Global Engineering Footprint
Global Product Development
Local Product Development
System Application & Validation
INDIA
SOUTH KOREA
CHINA
GERMANY
JAPAN
POLAND
UNITED STATES OF AMERICA
BRAZIL
GREAT
BRITAIN
• Leverage Indian frugal engineering
globally in all designs
• SW Competence Center in India
• Focus on System and Advanced
Development in Europe
• Follows a rigorous Six Sigma approach
R&D SPEND AS % OF SALES
Year 2011 2012 2013 2014 2015
WABCO India 1.1% 1.1% 0.7% 0.7% 0.8%
WABCO Group 3.8% 4.2% 4.4% 5.1% 5.3%
• Global footprint with main development sites in India, Poland & Germany 10
WABCO Confidential and Proprietary
WABCO Value Proposition
Applying technology to support OEM and Fleet needs
Braking Systems
Stability Control
Collision Mitigation
Accident Mitigation
Accident Prevention
Fuel Efficiency
Emissions Reduction
Energy Recovery
Weight Reduction
Maintenance Costs
Driver Capability
Big Data
Driver Behavior
Autonomous Driving
Preventive Maintenance
Fleet Management Solutions
11
WABCO Confidential and Proprietary
WABCO Vision for Vehicle Safety
A roadmap towards a vision for zero accidents
Collision Mitigation
TailGUARDTM
Blin
d S
po
t M
on
ito
rin
g
Pedestrian Detection
mBSP Electronic Stability Control
Blind Spot Warning
Driver Behavior Monitoring
Blind Spot Monitoring
Collision mitigation → avoidance
Driver behavior monitoring
2025 2020 TODAY
Accident prevention
Active steering
Autonomous driving
Safety 360°
Active Steering
12
WABCO Confidential and Proprietary
WABCO Vision for Vehicle Efficiency
Leading in solutions to reduce total cost of operation
2025
Clutch Compressor/Electronic Air Processing Automated Manual Transmission Electronically Controlled Air Suspension Aerodynamics
2020 TODAY
Lightweight Air Disc Brake Next Gen Automated Manual Transmission Aluminum Compressor
Electro-Mechanical Hand Brake
Adaptive Cruise Control
Fuel Saving: 122gal/125,000ml
CO2 Saving: 2688lbs
Clutch Compressor Electronic Air Processing Unit
Fuel Saving: 343gal/125,000ml
CO2 Saving: 7596lbs
Tyre Pressure Monitoring
Fuel Saving: 370gal/125,000ml
CO2 Saving: 8181lbs
Aerodynamics for Trailers
Fuel Saving: 793gal/125,000ml
CO2 Saving: 17530lbs
Automated Manual Transmission
Fuel Saving: 819gal/125,000ml
CO2 Saving: 18114lbs
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WABCO Confidential and Proprietary
Supplier to domestic OEMs
WABCO INDIA’s Supply Chain Leadership
Leverage powerful capabilities to deliver differentiation and value
Local manufacturing of
global product
Design and manufacturing of
subsystem for global OEMs
Supplier of components for
global needs
Design and Manufacturing of global products
2006 2014 2008 2010 2012 2016
Centre of
excellence
for select
products
14
WABCO Confidential and Proprietary
2015 Sales by Product Group
• Supplying an extensive product and systems portfolio
EBS & ESC
Wheel End
Compressors Air Processing
Brake Controls
Electronic Controls &
Monitoring Systems
Suspension
Control
Transmission
Automation
ABS Car Products
11%
11%
12%
6% 10%
4%
9%
15%
10%
9%
Telematics
3%
15
WABCO
WABCO INDIA
WABCO Confidential and Proprietary
777 868 732 641
856
1,202
116 177
234 470
492
637
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Export
Domestic
WABCO India Performance
Performance driven by portfolio enhancement and execution excellence
SALES IN ₹ CRORES
893 1046
966
1111 1348
1838 PBT IN ₹ CRORES
191
216
185
161 177
271
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
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WABCO Confidential and Proprietary
Customer Awards
SML ISUZU “Product upgradation
through innovation” award for the
year 2015.
Daimler India Commercial Vehicles
“Innovation award” award for the year 2015
Recognition of excellence through awards
Ashok Leyland’s “Best in class
performance in Quality” award for the
year 2014-15
Tata Motors' “Supplier of the
year” award for the year
2014-15
Volvo Eicher “Overall
cost excellence” award
for 2015
17 17
WABCO Confidential and Proprietary
Total Employee Involvement Awards
Gold award in NIQR Six Sigma competition First prize in National productivity championship competition conducted by IMTMA
Recognition of excellence through awards
First Prize in Quality Month competition conducted by Ashok Leyland for suppliers
First prize in ACMA regional QCC competition
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WABCO Confidential and Proprietary
107 145
191
407 420 497
19
33
37
55 61
75
26
27
28
29
42
70
0
7
12
14
14
30
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Services Received
Purchases
Services Rendered
Sales
Gross Transactions With Group Entities
Expanding positive trade balance by successfully supporting “make in India”
IN RUPEES (CRORES)
Gross transaction = Sales + Purchase ( goods + capital) + Services + Royalty/Technical Fees
153
212 268
504 537
672
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WABCO Confidential and Proprietary
190
1,728
3,518 5,367
7,319
0
1000
2000
3000
4000
5000
6000
7000
8000
18-Jun-09 18-Jun-10 18-Jun-11 18-Jun-12 18-Jun-13 18-Jun-14 18-Jun-15
Share Price in INR
Share Price Trend
Solid generation of shareholder value
5,817
31-May-16
20
WABCO acquired
majority stake
WABCO Confidential and Proprietary
Conclusion
Generating future sales growth through regional content gap closure 2
Leader in technology innovation 1
3 Cyclical domestic OE business complemented by increasing exports
Perfectly positioned to convert market opportunities into shareholder value 21
WABCO Confidential and Proprietary
Discussions
22
WABCO Confidential and Proprietary
23
WABCO Confidential and Proprietary
Financials
24
WABCO INDIA LIMITED
Registered Office: Plot No.3 (SP),III Main Road, Ambattur Industrial Estate, Chennai 600058
CIN:L34103TN2004PLC054667,Ph.91 44 42242000 , Fax .91 44 42242009,www.wabcoindia.com, Email: [email protected]
Part I
STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31st MARCH 2016
(Rupees in lakhs)
3/31/2016 12/31/2015 3/31/2015 3/31/2016 3/31/2015
(Audited) (Unaudited) (Audited) (Audited) (Audited)
1 Income from operations
(a) Net Sales / Income from operations (Net of excise duty) 53,935.86 43,200.71 36,233.78 173,985.95 127,153.44
(b) Other operating income 2,716.02 2,579.01 2,085.94 9,841.13 7,642.90
Total income from operations (net) 56,651.88 45,779.72 38,319.72 183,827.08 134,796.34
2 Expenses
(a) Cost of materials consumed 38,111.51 28,775.86 22,247.80 112,109.99 79,003.25
(b) Changes in inventories of finished goods, work-in-progress and stock-in-
trade
(3,315.23) (1,385.76) 555.37 (2,135.97) 290.68
(c ) Employee benefits expense 4,669.45 4,534.70 3,940.25 17,378.38 14,344.87
(d) Depreciation and amortisation expense 1,467.11 1,420.33 1,209.11 5,623.69 4,666.37
(e) Other expenses 9,147.34 6,089.15 5,940.13 27,195.82 20,822.11
Total expenses 50,080.18 39,434.28 33,892.66 160,171.91 119,127.28
3 Profit from operations before other income and finance costs and
exceptional items
6,571.70 6,345.44 4,427.06 23,655.17 15,669.06
4 Other income 1,020.91 606.04 590.32 3,460.96 2,029.89
5 Profit from ordinary activities before finance costs and exceptional
items
7,592.61 6,951.48 5,017.38 27,116.13 17,698.95
6 Finance costs 0.06 - 16.95 0.06 36.09
7 Profit from ordinary activities after finance costs but before
exceptional items
7,592.55 6,951.48 5,000.43 27,116.07 17,662.86
8 Exceptional items - - - - -
9 Profit from ordinary activities before tax 7,592.55 6,951.48 5,000.43 27,116.07 17,662.86
10 Tax expense 1,864.01 1,799.04 1,960.53 6,654.46 5,596.82
11 Net profit from ordinary activities after tax 5,728.54 5,152.44 3,039.90 20,461.61 12,066.04
12 Extraordinary items (net of tax expense) - - - - -
13 Net profit for the period 5,728.54 5,152.44 3,039.90 20,461.61 12,066.04
14 Net profit after taxes, minority interest and share of profit of
associates
5,728.54 5,152.44 3,039.90 20,461.61 12,066.04
15 Paid-up equity share capital 948.38 948.38 948.38 948.38 948.38
(Face value of the Share: Rs 5/- each fully paid)
16 Reserve excluding revaluation reserves as per balance sheet of previous
accounting year
- - - 105,816.97 85,355.36
17 (i) Earnings per share (before extraordinary items) (not
annualised):
(a) Basic 30.20 27.16 16.03 107.88 63.61
(b) Diluted 30.20 27.16 16.03 107.88 63.61
(ii) Earnings per share (after extraordinary items) (not annualised):
(a) Basic 30.20 27.16 16.03 107.88 63.61
(b) Diluted 30.20 27.16 16.03 107.88 63.61
S.No. Particulars
Quarter ended Year ended
WABCO Confidential and Proprietary
Financials
25
Part II
(Rupees in lakhs)
(Audited) (Unaudited) (Audited) (Audited) (Audited)
A PARTICULARS OF SHAREHOLDING
1. Public Shareholding
- Number of Shares 4,741,900 4,741,900 4,741,900 4,741,900 4,741,900
- Percentage of shareholding 25% 25% 25% 25% 25%
2. Promoters and Promoter Group Shareholding
a) Pledged/ Encumbered
- Number of Shares NIL NIL NIL NIL NIL
- Percentage of shares (as a % of the total shareholding of promoter and
promoter group)
NIL NIL NIL NIL NIL
- Percentage of shares (as a % of the total share capital of the company) NIL NIL NIL NIL NIL
b) Non-Encumbered
- Number of Shares 14,225,684 14,225,684 14,225,684 14,225,684 14,225,684
- Percentage of shares (as a % of the total shareholding of promoter and
promoter group)
100% 100% 100% 100% 100%
- Percentage of shares (as a % of the total share capital of the company) 75% 75% 75% 75% 75%
Particulars Quarter ended 0 0 Year ended 0
WABCO Confidential and Proprietary
Financials
26
Statement of assets and liabilities (Rupees in lakhs)
Particulars As at
31.03.2016
As at
31.03.2015
(Audited) (Audited)
A EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital 948.38 948.38
(b) Reserves and surplus 105,816.97 85,355.36
Shareholders' funds 106,765.35 86,303.74
2. Non-current liabilities
(a) Deferred tax liabilities (net) 993.79 1,645.24
(b) Other long-term liabilities 3.00 3.00
(c) Long-term provisions 1,684.86 1,871.90
Non-current liabilities 2,681.65 3,520.14
3. Current liabilities
(a) Trade payables 34,661.89 17,790.05
(b) Other current liabilities 7,580.05 2,331.50
(c) Short-term provisions 716.88 1,402.50
Current liabilities 42,958.82 21,524.05
Equity and liabilities 152,405.82 111,347.93
B ASSETS
1. Non-current assets
(a) Fixed assets 37,326.79 34,137.03
(b) Non-current investments 220.24 220.24
(c) Long-term loans and advances 3,421.01 2,291.83
Non-current assets 40,968.04 36,649.10
2. Current assets
(a) Current investments 21,800.00 3,700.00
(b) Inventories 17,563.65 11,797.03
(c) Trade receivables 43,572.68 29,915.05
(d) Cash and cash equivalents 21,303.62 22,305.12
(e) Short-term loans and advances 7,058.20 6,812.57
(f) Other current assets 139.63 169.06
Current assets 111,437.79 74,698.83
Total Assets 152,405.82 111,347.93
B. INVESTOR COMPLAINTS
Particulars3 months ended
31-03-2016
Pending at the beginning of the quarter Nil
Received during the quarter 1
Disposed of during the quarter 1
Remaining unresolved at the end of the quarter Nil
NOTES:
1
2
3 The Company operates in one segment, namely automotive components.
4
5
6 The figures for the previous period / year have been regrouped wherever necessary to conform to the current year's classification.
For and on behalf of the Board
Chennai M Lakshminarayan
19th May 2016 Chairman
The above audited financial results for the quarter ended 31st March 2016 were reviewed by the Audit Commmittee and upon its recommendation, were approved
by the Board of Directors at its meeting held on 19th May 2016.
The Board of Directors have recommended a dividend of Rs.---- per equity share absorbing a sum of Rs……... lakhs (including dividend distribution tax) for the
year ended 31st March 2016, subject to the approval of the shareholders at the ensuring annual general meeting of the Company.
The Share Transfer books and register of members of the company will remain closed for a period of 2 days commencing from 28th July 2016 to 29th July 2016
(both days inclusive) for the purpose of annual general meeting of the company .
During the current quarter w.e.f January 1, 2016, the Company has entered into a revised royalty agreement for the use of technical knowhow, trademark and other
services availed from group / related party. Pursuant to this agreement, the Company has recognised a charge of Rs. 1,422.22 lakhs in the quarter ended March 31,
2016
WABCO Confidential and Proprietary
27