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The Motherson story.

November 2017 The by Rajarishi brief introduction to Motherson Group was started in 1975 as a partnership between Late Mrs. SwaranLata Sehgal and her son Mr. Vivek Chaand name signifies a relationship of trust with all Motherson Group (SMG) is one of the world s fastest growing specialized automotive component manufacturing companies for with 24joint venture partners. Over 100, over 230 facilities in 37 $ Bnapprox. in yearly 's core business units. One of the largest manufacturer of IP modules, door trims and bumpers for passenger cars in Europe & India One of the largest manufacturers of wiring harnesses for passenger cars in India and for commercial vehicles globally One of the largest manufacturer of rear -view mirrorsglobally, 01 Modules, bumpers, door trims and plastic parts% of MSSL sales*.

Target (as set in 2010) Achievement (2015) Make MSSL a 5 Billion Dollar Company

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Transcription of The Motherson story.

1 November 2017 The by Rajarishi brief introduction to Motherson Group was started in 1975 as a partnership between Late Mrs. SwaranLata Sehgal and her son Mr. Vivek Chaand name signifies a relationship of trust with all Motherson Group (SMG) is one of the world s fastest growing specialized automotive component manufacturing companies for with 24joint venture partners. Over 100, over 230 facilities in 37 $ Bnapprox. in yearly 's core business units. One of the largest manufacturer of IP modules, door trims and bumpers for passenger cars in Europe & India One of the largest manufacturers of wiring harnesses for passenger cars in India and for commercial vehicles globally One of the largest manufacturer of rear -view mirrorsglobally, 01 Modules, bumpers, door trims and plastic parts% of MSSL sales*.

2 03 Rearview *Extrapolated to FY 2017-18To be by Ron W6 Formulated in 1997, the vision of the Group has been the same all 1999-2000 we started to print our targets for the next 5 year plans in our Annual Report. Today, Motherson only gives a 5-year guidancewith a focus on long term growth5 Year Plans7 Target (as set in 2010)Achievement ( 2015 )Make MSSL a 5 Billion Dollar CompanyAchieved USD Bn70% of our consolidated turnover should cater to the requirements of our customers outside India Sales from customers outside India is 85%Global Presence in 26-27 countriesPresence in 25 countriesAchieve ROCE of 40%26%* (on consolidated basis)36% (Excluding Acquisitions done post announcement of Vision 2015 )41% (on standalone basis)

3 Dividend Payout Ratio of 40% of our consolidated net profitDividend Payout Ratio 37% (on consolidated basis) 62% (on standalone basis)5 Year targets & our (as set in 2005)Achievement (2010)Make MSSL a Billion Dollar CompanyAchieved USD Bn60% of our consolidated turnover should cater to the requirements of our customers outside India Sales from customers outside India was 70%Contribution from any individual customer in our turnover shall not be more than 20% of the total turnoverSingle largest customer contributed 15% of the total turnoverStrive to maintain business ROCE of 40%ROCE of 37% (standalone basis) ROCE of 22% (consolidated basis)Shift our stated dividend policy of 40% payout of the company s profits to 40% payout of the consolidated ProfitsDividend Payout Ratio 44% (Standalone) 32% (Consolidated)Target (as set in 2000)Achievement (2005)To cross Rs.

4 1000 Crore (Consolidated) by the year 2005 Achieved Rs. 1029 Crores**taking full turnover of JVsAchieve 30% of sales from global customersSales from customers outside India was 29%Not to have dependence of over 25% on any one sourceLargest customer contributed 27% of the total turnoverAttaining Return on Capital Employed of 40%ROCE of 39% (on both Consolidated & Standalone Basis)Dividend Payout Ratio 40%Dividend Payout Ratio was 43% for 2004-05 Consistent Growth with Focus on Target ROCE of 40%89 Our 5th five -year 2020 ROCE(consolidated).40% of consolidated profit as billionFY19-20 (MSSL).$010204033CX15(No country, customer or component should be more than 15% of our total turnover)Our path of profitable 2 2,984 46,591 2,92,313 3,17,100 3,61,225 1931,5287,30620,43152,59048,70358,61762, 2001931,53010,29067,0223,44,9033,65,8034 ,82,0421993200020052010201520162017 Within IndiaOutside IndiaTotalDelivering growth while statying disciplined.

5 MSSL consolidated revenues11** Revenues of PKC group (acquired at the end of March 2017) of Euro million for 2016 on performa(Rs. in millions)12 The grouphas integrated 19 acquisitions since 2002, creating synergies while leaving companies to manage themselves as autonomously as metal components Reiner Precision Germany, (Asset purchase)03 Plastic injection moulding G&S Kunststofftechnik GmbHGermany, (Company purchase)01 Wiring Harness BusinessWexford Electronics Ireland,(Asset purchase)04 Plastic injection moulding FormagrauCzech Republic, (Company purchase)06 Wiring harness business ASL Systems UK, (Asset purchase)05 Door trim businessHuon Corporation Australia(Asset purchase)07 Rubber moulding business Empire Rubber Australia, (Asset purchase)09 Global Rear View Mirror business of VisiocorpUK (Rear view mirror business)

6 11 Thermoformed polyethylene and blow moulded components Vacuform 2000 pty Africa13 Extruded plastic parts Scherer & TrierGermany, (Asset Purchase)14 Plastic moulding Minda SchenkGermany, (Asset purchase)2002200520062007200920112014201 6201717 Plastic moulding Abraham and Co LtdHungary (automotive business unit)10 Interior & exterior polymer modulesPeguform, Germany08 Gear cutting toolsDagger Frost ToolsIndia, (Strategic business units purchase)201212 Powdered metal parts Sintermetal SASpain, (Share purchase)16 Magneti Marelli Shock Absorbers Pvt. LtdIndia (Stake purchase)18 Illumination solutionsKobek Siebdruck GmbH & Co. KG, Germany (Share Purchase)19 Wiring HarnessPKC Group Plc, Finland(Share purchase)15 Wiring Harness Business of Stoneridge (Wiring harness business)Acquisitions at the behest of our Payout : Stated Dividend 840 2,428 8,625 12,922 15,543 46 268 786 3,184 3,775 5,068 29%32%32%37%30%33%0%10%20%30%40% '- 4,000 8,000 12,000 16,000 20,000200020052010201520162017(Rs.)

7 In millions)PATD ividend PayoutDividend Payout Ratio13 Current share capital.(Rs. in millions)Total581052353888821,3231,404** As of 31stMarch of corresponding FY141458 58 58 58 58 58 58 58 4 4 4 4 12 12 12 12 12 12 12 35 165283 773 1,214 1,214 1,915 35 35 35 35 35 81 81 199320002005201020152016201730th Sep 2017 QIP & Preferential Share AllotmentFCCBB onus IssueRight IssueSMIIEL MergerOriginal IPO2,105*YearMode% 2005 FCCB10% "not so secret Motherson creates QualitySeamlessly fit global quality standards of the customer trust via CostWork at leading cost DesignProvide design support for current products and new DeliveryDeliver globally and be able follow the customer where they need EnvironmentMeet the highest environmental SustainabilityBe committed to long-term greatness rather than transactional SafetyWork to the highest standards of ManagementLead the organisationwith the highest governance content per car : a not yet on giving the best suited solutions to customers.

8 With an open mind. In the process, we increase content per vehicle, serve more geographies, get new technologies, make new acquisitions, TrimCockpitWiring HarnessBumperHVAC SystemsExterior MirrorFrontend ModuleInterior MirrorBody Control ModuleVehicle ElectronicsShock AbsorberAir Intake ManifoldPedal Box AssemblyFuse BoxConnectorsGrommets & Rubber PartsJunction BoxOutside HandleInside HandleHeadlightTail LightExtruded PlasticPartsTail GatesBattery TrayBox Floor ConsolePillar TrimScuff PlateSpoilerInterior LampAir Cleaner content per car19 Customer-wise revenue STOCKR olling stock has been added as a new customer segment.*Extrapolated to FY 2017-183CX15 Region-wise *FY2014- 2015 North & Central America12%22%South Africa1%1%South America2%3%Germany31%26%Spain16%11%Rest of Europe10%13%India14%13%China7%6%Asia Pacific6%4%Australia1%1%*Extrapolated to FY 2017-183CX15202102 Business-wise revenue Harness: : India: India: India: : India: 100% : : : & Others: Exteriors: Others: 11%SMP Interiors: 23%The wiring harness division has become much more 2017-18**Extrapolated to FY 2017-18 Sales to other divisionsTop line is line is in bank is pursue top line for the sake of topline strong focus on ROCE.

9 Return on Average Capital Employed (ROACE) for MSSL in our 5-year plans. All time high ROCE for Standalone at 48%40%39%22%26%27%28%24%39%37%41%43%48%2 000200520102015201620172323 ConsolidatedStandaloneTarget36%Consolida ted ROCE, excluding acquisitions done post announcement of Vision 2015 Stable and improving operating margins and ROCE -Case Study (SMR).6207558609931,1191,2761,3941, ,2001,7002,200FY10FY11FY12FY13FY14FY15FY 16FY17 RevenuesEBITDA %( m)6%25%13%17%31%34%41%47%0%5%10%15%20%25 %30%35%40%45%50%FY10FY11FY12FY13FY14FY15 FY16FY17FY10-17 CAGR: (%)Revenue and EBITDA marginsROCEF igures till FY15 are as per from FY16 onwards are as per INR 2,500 invested in the MSSL IPO is worth INR 9,146, 891 (including cumulative dividend)*.IPO8X85X268X3,659X which is equal to 365,776% return*As on 24thNovember 2017 Returns to ValueCumulative funds, while reducing financing costs.

10 Significant improvement in credit rating recognised and rewarded by investors. 500mn / 7yr / (SMRPBV) SMRP (BB+ / - / - ) MSSL ( -/ - / - ) SMRP ( BB+ Pos / - / BB+ Pos) MSSL ( -/ Baa3 /-)RatingsDebt raisingInterestrates $400mn yr eqvl. ~ (SMRPBV) 100mn / 10yr / (SMRPBV) 300mn 7 yr (SMRPBV) Lowest Indian linked non-Govt pricingFinance 230 facilities in customers REPUBLICUAERUSSIAAUSTRALIAMAURITIUSSINGA POREBRAZILUSAFRANCESPAINMEXICOHUNGARYCHI NASOUTH KOREAJAPANSOUTH AFRICAITALYTHAILANDSLOVAKIASRI LANKAPORTUGALINDIANETHERLANDSSERBIAFINLA NDESTONIALITHUANIAPOLANDCANADAHONGKONGCY PRUSIRELANDLUXEMBOURGMACEDONIAM otherson is trusted by OEMs & Technology Award from VWToyota Regional Contribution AwardGlobal Partner for DaimlerE&Y Entrepreneur of the Year 201630 South America Supplier of the year FordRenault NissanOverall Best QCDM Performance AwardsToyotaRegional Contribution Award Supplier of the Year Silver awardBest Project PerformanceZERO PPM AwardCertificate for QualityCertificate for DeliveryDaimlerSupplier Award forPartnership(support in global growth)


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