Welcome all to the Investor Meet 2022. We are very glad you are here, and we are honored to be hosting you today. Hopefully by now you've all had a chance to take a look at our Motherson Experience Centers. That was in the corporate office on the second floor. If not, don't worry, you will get another chance in the H2 of the day. Before we go any further, please let me call on stage our safety briefing coordinator for this event, Major Appetti. Major, please. Good morning, ladies and gentlemen. Welcome to Motherson. Safety brief. This arena has two locations called Conference Hall and Trend Zone. You are currently inside the Conference Hall. It has got five emergency exits. one exit each is towards your right, left, and in front of you. two exits are exactly behind you, and the assembly area is 75 meters behind you. In case of an emergency, please use these exits to reach the assembly area. Safety coordinator is available inside the hall, and trained security staff is available outside this hall to help you in case of an emergency. Similarly, Trend Zone has four emergency exits, and assembly areas remain the same. In the due course of this meet, you will also be visiting first floor. Like second floor, first floor has four emergency exits. It's as shown in the floor layout. One exit is near the lift and the other is at the back side of the floor. Floor emergency evacuation layouts and emergency exit signage are prominently displayed on the floors. In case of an emergency, please press the panic bar down on the emergency exit to approach stairs, climb down and reach the indicated assembly area at the ground floor. Trained security personnel are available on the floors to help guide during emergencies. Lift will not be functional during emergencies. Thank you very much. Have a safe stay and engaging event. Thank you, Major, for the information. Everyone, before we move forward, I wanted to remind you, everyone around you will see wearing these lanyards. You will see three different colors. Our organization team is the one wearing the orange lanyard. They'll be able to help you with anything you might need today in terms of, you know, logistical issues or any questions you might have. Anything we can help with, we're happy to be there. Ladies and gentlemen, up next, we do have the main event to get the ball rolling. Allow me to call on stage our silent CFO. Most of you know him as our lean, mean finance machine. Help me welcome Kunal Kothari. Thanks, Akshay. You're my best friend. If someone told me I'm lean, mean, I hope not. Killer machine, we'll see by the end of the day. Good morning, everyone. Great to have you here. It's a Saturday. I know it takes a lot of personal commitment to be here, so we're very, very grateful for your presence here. Actually, maybe I should be saying, more importantly, we should thank all your spouses and family members to have allowed you to come here on a Saturday. Look, we met here last in November 17. It's been five years. Some familiar faces, many new faces as well. You know, the world's quite changed. It looks like a completely different world now. You know, some things have remained a constant. As an example, you know, as you're aware, we have our five-year plans, and our endeavor to achieve these five-year plans have remained a constant. We are here today, in the halfway journey of our sixth five-year plan, the Vision 2025. We are very excited to show you where we are and, you know, how we will get towards achieving our Vision 2025. You know, when we announced this event, a number of you have reached out to us to tell us, you know, what you would like us to showcase here, what you would like to see and hear. We've tried to incorporate many of these elements into the day. You know, as an example, I hope everyone enjoyed the Motherson Experience Center, which showcases, you know, all our products and technologies. I shouldn't say all. It's actually only about 10% of what we do. That's what we could fit in here. Don't forget we have 300 facilities across 41 countries. Similarly, we've we have a Trend Zone after this, which will give you a flavor of how our products and technologies are evolving to meet some of the changing trends. We also have the entire team which actually makes this a reality. Please spend some time engaging with them and they can certainly convince you a lot more about why we do what we do and why we are so good at what we do. I hope it'll be a very engaging and, you know, a pretty packed day. Unfortunately, we're starting a little late, thanks to all the weather and traffic. I hope that by the end of the day, you know, you are as excited as we are on this journey and at the same time, as confident as we are to try and achieve our Vision 2025. Let me please invite Vaaman Sehgal to share his thoughts on our journey and where we are. Maybe I should say, drive us on Route 36. Thank you so much. Good morning, welcome everyone to our show here today. I take the cue from Kunal and thank you all for being here on a Saturday. I do apologize for the weather, but in Motherson, we are not allowed to apologize for traffic, because if traffic is there, that means business is doing well. Not apologizing for traffic, but yes, for the weather, you know, please excuse us. Welcome to our halfway point. It's a very important meet for us. We as a whole team are quite excited to show you where we have reached. It's important halfway point. It's exactly half of where we are in Motherson. I'm having some issues with the clicker, not working. As always, you plan for everything, but the easiest of thing s don't work. We can send people on the moon, but having a presentation work, you know, without any issues is always a problem. Anyway, I think they are bringing it back up. Please excuse me. Hopefully, it's gonna work now this time. Welcome again from my side. This is the halfway point. My presentation is gonna take you through exactly where we are. I might remind you also of our Vision 2025, what we stated to do back in 2020. The world was very different back then when we set on this journey, but that being that, we still have a long way to go. I'm sorry, it's not showing properly. Yeah. Thank you so much. I start again. I want to remind you what we started back in 2020. What is our Vision for 2025? Where is it that we stand right now at that halfway point? Why is it that we stand where we stand? I'm going to hopefully answer a lot of the questions that you have. How is it that we're still gonna get to that point of what we've set ourselves out to achieve at Vision 2025. After that, we're gonna open up the floors for question and answers, and you will have a chance to see the senior management team and ask questions if you do have any after my presentation. Let's get right into it. Everything starts at Motherson with purpose. We here at Motherson constantly aim to delight our customers and set ourselves seemingly impossible goals. The reason why we set ourselves impossible goals is that it's the only way we see that we can provide sustainable opportunities for growth for all our people here at Motherson and become part of something much larger than ourselves. We've been doing this for a long time. This is our sixth five-year plan. As you can see, if we hadn't set such large, ambitious targets, there is no way we would have been able to achieve a CAGR of 32% year-on-year from the time since our inception. Setting large goals, you know, seemingly impossible targets, what's really propels us to unleash our full potential and deliver stellar results for all of us. Again, you can really ask, why do we set such high targets? Frankly, it's the only way that we believe that we can create value for our stakeholders. While doing that, it's the also the way that we can create opportunities for all our people. Imagine if we were one product, one country, one company. How many opportunities could we give to the people that are part of Motherson? By setting very high goals, you know, trying to diversify, bring in more products, enter new countries, we give a lot of our people who have been with Motherson unlimited opportunity for growth. Finally, because we wanna do something amazing and something really valuable. You know, we believe that we have all the key ingredients in terms of an amazing team, sound principles of doing business, a strong philosophy, and we believe that we can really be the benchmark in the industry in manufacturing. That's why we really set these targets. Now, let me refresh what is it that we are trying to achieve by 2025. To be a $36 billion company, but it's not just the top line, it comes with the bottom line. We just don't want to do it for an ego purpose or something like that. We wanna be a $36 billion company with delivery of a 40% growth. On top of that, we want to be a diversified company. The reason for that is that if we are able to do different products in different geographies, so the 3CX stands for no country, no customer, no component to be more than 10% of our business. If we're able to do that, we can continue to grow no matter what market condition is really out there. For the first time ever, we are actually targeting to do non-automotive in this five-year period. This is stuff that I'll get into a little bit more in my presentation as well. This is what we set out to achieve. Finally, we're gonna triple up from where we are right now while maintaining financial discipline and making sure that all our financial policies are intact. Quite a heady mix. I think it's important that you understand that all these targets are not just, you know, one-offs. They are interrelated. They have to come with each other, not at the expense of each other. That is what ensures that we maintain good discipline and give comfort to all our investors that we're not doing acquisitions or not going for growth just for the sake of going after growth, but actually doing it in very proper, organized approach with financial discipline, head on our shoulders, and we'll be opportunistic in the market when we get windows to be able to achieve all these things. Where do we stand today? You can imagine. Announced it in 2020. As soon as that happened, COVID hit. We didn't say, "Okay, let's delay by a few years." In fact, we reorganized ourselves. We said that, you know, if we really want to be a $36 billion company in the next five years, some things in our structure have to change. There was a lot of feedback coming from our investors. The structure is complicated. We need it to be simplified. We listened to all of you. We actually went through an exercise of reorganizing our entire company and putting all of the group under one umbrella. We reorganized, now we have created two very successful and exciting companies. SAMIL, being the company which is completely diversified, has a large portion of the revenues, will house all the international acquisitions, of course, being a very focused entity called MSWIL, which is again, with our joint venture partner, Sumitomo San, where Motherson originally started, which is focused only on the Indian PAS car wire harness business, which in itself is a huge market opportunity, as we know that India has tremendous potential moving forward, in the automotive growth. Two very exciting companies, market leaders in their own domain. One will focus more on the international side, one will focus more on the Indian PAS car wire harness, creates two very exciting entities for all our investors while working as one. We've also not just simplified the structure, we've also simplified all our branding, all our logos. Instead of having multiple companies and people not really knowing that where they belong, now everybody belongs under one logo, one brand, which has unified all of us under one simple logo, Motherson, which you will see all around you and everywhere that you go. This is a start of a new chapter. It's something that we call Motherson 2.0. 2.0 is not just a number. It's an attitude in Motherson. It's a way that we are in... asking every single person in the Motherson family to imbibe certain principles, certain values. We want to be a company that becomes more agile now. As we grow in size, we're gonna triple up in size, we're gonna have to do something different than what we have done to get us to where we are. Especially in a world where there is so much volatility, there's so much uncertainty, we are pushing our people to have a fresh approach to deal with the challenges, be more dynamic, be more agile, be faster to react to any situation, and that's what we call is Motherson 2.0. I have a small movie that I hope you guys will enjoy and will explain more what I'm trying to say. As you can see, our platform is ready, and we were ready to really go after the 2025 targets. Since then, the world has become that much more uncertain and unpredictable. You see some research out there. Researchers from Stanford are saying that the level of uncertainty that there is in the world and the range of the unexpected events that are happening are reaching extremes, which means that it's really hard to predict anything that's really gonna happen. Extremes are getting more extreme. There's getting faster, unpredictable events that are happening in the world that is making it very difficult to really have a plan. You have to be the fastest to respond to any situation, which is a much bigger strength than trying to predict it, because obviously, that's not possible to do in our world anymore. When most of us, you know, thought, "Okay, COVID is going to be one year. You know, 2021 is going to be a much better year," hey, we were hit with even more challenges. COVID on hindsight was just the start of a domino effect of a lot more problems that happened. Chip shortage, rising commodity prices, geopolitical situation in Europe, crazy levels of inflation, rising labor costs, all these things have hit us one after another. There's two approaches, right? One say, "Hey, let's take a breather. Let's take a break. Let's postpone." The other approach, which Motherson adopted was that this is the reality of the world that we live in. If you think 2022 is coming to an end and 2023 is gonna be a better year, hey, don't hold your breath. I have got news for you. New challenges are gonna come up, and that's what Motherson 2.0 is about. That's what we are embracing ourselves and saying, "Hey, even in these tough times, even with these things that are constantly going to happen, we're not going to get a breather in a year. We're going to have to find ways and means to still grow, to still achieve our 2025 targets, no matter how difficult the world is really out there." Needless to say, we've had the most challenging start to any 5-year plan in the history of Motherson. Not only that, as we saw that post-COVID, the 2021 time that we had, everything started to go up, really unreasonably, irrationally, and there was a lot of cheap money available. There were a lot of acquisition opportunities available, and, you know, we had a lot of opportunities to really go and grab and bite, do a large acquisition, and actually have already achieved our $36 billion vision. You would have seen a lot of news articles that are saying that Motherson was, you know, trying to acquire quite large companies. Frankly, if we would have done any of those things, in hindsight, we would have significantly overpaid for these businesses. That's one of the reasons why you didn't hear large acquisitions that have not happened with Motherson because we did see a path to 40% growth. What I'm trying to say is we are patient. We've got a head on our shoulders. We're only gonna go after our $36 billion target when we find a sustainable path to a 40% growth. At the same time, we're not wasting time. Even though acquisition opportunities will come when the timing is right, we've actually focused on getting our house stronger. Reduce fat, leaner operations, and that has shown results on the organic side. Organic is in our control. The teams have worked extremely hard. As you can see, our revenues annualized will be $12 billion this year. It'll be a record for Motherson. This is in an environment where the passenger industry has actually declined. There is a degrowth in the industry, yet Motherson is growing, is outpacing the industry growth a good 8%, 9%. That is the magic of our teams. That is the hard work and commitment of these teams to make sure that even in the toughest of times we find ways to grow. We don't guide on EBITDA margins, but we do obviously focus on our profitability. That's why I think it's key for you to look at this chart and understand that we focus on absolute growth of EBITDA. We don't like to be judged on the percentages because, you know, the fact is we're not a cement or a tire company where the product largely remains the same year-on-year. After every single cycle of five to seven years of a particular program with a carmaker, we have an ability to completely re-engineer, redesign, completely create a new product. Let me give you an example. Let's say for our mirror business. Let's say the mirrors which are simple mirrors cost, and again, just giving you an illustrative example, a pair of simple mirrors cost EUR 10. We have an EBITDA margin of 10% on those EUR. We make EUR 1 in EBITDA. The next version and something that you will see in our Experience Centers, you're seeing mirrors coming up with highly embedded cameras, and the future will be perhaps only camera. These are also things which we have already developed in-house. These cameras will be priced, which will replace mirrors, which will be at perhaps EUR 100. These EUR 100 cameras, it's not that we're going to be producing every single part. There'll be a lot of stuff that we will be buying out. Our EBITDA margins, because there's a lot more bought out content, will actually come down from 10% to perhaps even half, 5%. The absolute growth in EBITDA from that 1x is now 5x. It's a 5x growth while the percentage of our EBITDA may look like it's halved. Please don't judge us on the percentages. Look at the absolute growth, and you can see in the chart that I'm displaying, there's been absolute growth on the profitability as well, 23% CAGR year-on-year. That is how you should be looking at Motherson, and don't get thrown off by the last few numbers why that's coming down. This is the performance in one of the worst conditions with significant headwinds. The companies are still maintaining profitability and just imagine what is possible when the market comes back and when the uptick happens, the effect that's gonna happen to our bottom line there as well. What we do guide on, what we do focus on is ROAS. Here again, you might say, "Why is it at that 8% when your target is 40%?" Here also you have to understand, ROAS is a journey. It's not something that happens overnight. For us to deliver ROAS, it takes a five to seven-year period for us to really make a company sustainable, put the necessary investments, win the new customer orders, and as those orders are taken by the company, the ROAS increases. If we remove all the new plants that we've invested in... By the way, we've set up 41 new greenfield and brownfield plants in the last five years that are ready for new business orders to take off as the market comes back. As we take out all these new investments in greenfield and brownfields, we take out the new acquisitions that we have done, because they, too, require investment, require for us to win the new orders from the customer and really show our true colors. If you take out one cycle, five to seven years, you will see that this growth is already sitting at 19%, and that too in a very tough environment that we have right now. Again, please do understand our numbers a bit more deeply. That will give you an understanding of how Motherson is performing. I am sure, as you will see, as the industry becomes better and stronger and some of this noise on the macroeconomic side goes down, this growth will get much closer to that 40%. Despite the tough times, despite all the challenges, the teams have worked extremely hard to maintain our leverage and conserve as much cash as possible. In fact, some of the toughest times Motherson has proven its capability by de-leveraging in these times and conserving cash. Don't get thrown off by the 22 number. This is when the merger of SAMIL happened, so it's not an apple to apple comparison. Even with that merger, you can see that we are well below our financial policy of being under 2.5 times net debt to EBITDA. As the situation improves, as the working capital gets to open up because of the numerous macroeconomic challenges that we are having, again, we significantly believe that these numbers will improve and show you the delivery of where we wanna be by 2025. In short, the world is uncertain. Yet Motherson has increased our revenues, maintained our profitability, is on a path of improving growth while keeping our leverage well under control. We are strong. We are resilient. The good news about bad times is that they throw up some of the biggest opportunities. We doubled our turnover in the 2008-2009 financial crisis by the acquisition of Visiocorp. That's how SMR came into being. It's now one of our strongest companies, delivering a growth of over 40%. Similarly, with SMP, we believe that in these tough times is when the biggest opportunities for Motherson will come too. Not as is all that bad. I think even though we're in tough times, it's good times for Motherson as acquisition opportunities will present themselves. You can still ask me, "How is it that we are really gonna get there? We understand that the opportunity is there, but how is Motherson really gonna get there?" I'm gonna break down these targets one by one, but I'm not gonna do it by just standing here and constantly talking to you. I'm gonna do it in true Indian style, because in India we love Bollywood. We have created a movie here in eight parts, and I'm gonna take you on a journey with me. Instead of me just standing over here and taking through numbers on the presentation, we have created an 8-part movie, which is gonna take you with me to numerous plants of us around the world for you to understand how Motherson is on a solid foundation and on track to achieve our 2025 targets. Let's see the idea of the film in the first part. Hello, everyone. In April 2020, we started our sixth five-year plan. That was $36 billion on the top line with a 40% growth, of course, and we also added four new verticals. I think it's a great time to have a midway update as to what's happening. To do this, we have a perfect plan. We're gonna call it Route 36. With Route 36, we're gonna try and show you what we are doing to achieve our targets for 2025. It's also necessary to understand why. What is the purpose of why we are doing this particular thing that we do every five years? The reason for me has always been to create sustainability of jobs for our people who are working and contributing to the growth of the company. In this unsustainable world, very difficult world, with lots of challenges, new challenges coming on a day-to-day basis, we have to find a way by which we can tell our people, "This is where we want to be in five years from now. This is the way to go for it. We will look after our customers, we'll look after our investors, and most importantly, we will look after our associates and the whole team of Motherson globally." It's important to understand that we don't do it only for the top line. The whole idea is to grow in a manner that the top line grows, there is opportunity for everybody in the world to grow, and also bottom line is met, so there is a sustainable way by which you can achieve this particular target. It takes a lot. A lot of people think that, you know, a lot of companies are available for acquisitions, so we can go ahead and take any company possible. Please remember, acquisitions are a double-edged knife, you know. It goes in cutting, it comes out cutting. We have to be very careful, have a head on our shoulder to make sure that the acquisition that we do is a commitment to the workforce and as well to the customer that we will make it sustainable. It's also important to do something which is bigger than all of us. Something for the world, something for everybody. I believe that's an amazing target to get. There's Raman. Raman! Oi, Rinin. The car's ready. I'm coming. Hey, this car looks good. Come, sit down. Raman, I think you should drive, and I'll try and catch up with you wherever we are going. Do you have a list where all we are going? Yeah, Papa. I thought I'd go to Kecskemét, go to Mexico, go to our plant in Tuscaloosa. As many as I can do while driving all the best cars and all our exciting products in our cars. We just love our business, don't we? Catch up with all the teams 'cause I haven't seen them in a while. Yeah. I think, you know, corona times, it'll be a great thing for them to see us and all the new greenfields as well. We're gonna have a good time with that. Okay, Papa. I'm gonna pack my stuff and get ready to go. Yep. Ready. Let's do this. Bye, family. Bye. See you. See you. See you. Have a great trip. Bye. We'll see you soon. Bye, guys. Bye. Bye, family. Bye. Bye. Bye. Have a great trip. Bye. I'm really excited to go on this Route 36 journey with you and show you so much more about Motherson. Route 36. The first stop. Here we come. Welcome to Route 36 with me. I'm glad to have you on this journey. The first chapter of this movie is, of course, addressing revenue growth. Before I get into revenue growth, because that is a large part of how we are going to hit $36 billion, I want to take you to our strategy of growth in Motherson is the reason why we have grown to where we are today. It's what we call the value chakra. It all starts with having great performance. Focus on QCDDMSES. These are the parameters that the customer judges you on: quality, cost, design, delivery, management, safety, environment, sustainability. Phew, got that right. As long as you do great in these parameters, the trust of the customer keeps going up. You rank in the top 0.5% of their ratings. They build trust. You know what? They come back to you, and they ask you to do more. It could be different products. It could be growth in new countries. It could be acquisitions. It could be joint ventures. Whatever is the customer's problem right now, as long as they have trust in you, they'll come back and tell you to do more. They ask us to do more, we oblige. We take that on as a challenge. Our value content increases. As that increases, again, we become a preferred solution provider. We solve their problems. We focus on the QCDDMSES, and the chakra goes on and on and on. It is an endless upward spiral for us. As long as we do well, we are guaranteed growing business with our customers as we become an integral part of their supply chain. Now I'm gonna break down the organic growth into two parts. The revenue growth into two parts. First bit is, of course, the organic growth, which is more in our control. For that, I'm gonna take you on the journey with me again in the movie, and we're gonna talk to Pankaj Mital, sir, who is the head of our SAMIL and is well responsible for the entire wire harness division. I'm gonna show you two very fast-growing units in the group as well, in Mexico and in Hungary, and show you how they are helping us achieve our revenue targets. Let's see how they do it. Good morning, everyone. Welcome to Route 36. We are about to go on our first chapter. Hello. Hi, Pankaj Mital sir. How are you? Okay, I can meet you there. Okay, great. Bye. Pankaj Mital sir, hi. Hey, Raman sir. How are you? Good to see you. Good to see you too. How was your trip? Yeah, travel is back to pre-COVID levels. That's true. That's true. Seeing all the plant, meeting all the people. Everyone's very excited, asking me about our growth targets and our ambitions. You know, if we're still keeping on to our 2025 target. Sometimes people don't understand why we set these targets, but it's exactly what you said. We see the excitement when we visit our plants and the ambitions each one of them have. These targets keep everybody motivated, they take them to new places. The new verticals which you have decided to set up, they are also coming out as great growth avenues for people to use their knowledge literally, they're so excited about that. More than that, also our customers, like, they look up to us for something where they have issues or something new which they want, because we can do it either by ourselves or through joint ventures, partnerships, which we have made so many of them successfully, as well as through acquisitions wherever needed. Even though there is so much, you know, turbulence in the world, for us, growth is like this tree, right? It's has to always happen. It's ever growing. Absolutely. If we don't have these bottoms up target, which give them avenue of growth and utilizing their capabilities, it will be such a shame for us. It's been really great, so thank you very much for giving these great opportunities to everyone. Pankaj sir, it was great catching up with you, in this wonderful location under this beautiful tree. Where do you suggest I go next, to see more pockets of our growth? The, you know, we can go to Acuña. That's where we see the next organic growth coming. Kecskemét. MTSL, that's the software side of us, and also the new aerospace business. Mm-hmm. That's coming up in Bangalore, that's again very interesting. Yeah. Raman sir, another interesting location would be Japan. As you know, we have been working with the Japanese for such a long time to support the customers in India and other Asian countries. Now, we are able to support the customers in Japan as well, and we recently set up the Hamamatsu Center. I'm sure many more things will come, so it will be really good if you could visit Japan as well. That's a good idea. Yes. Fantastic. Thank you. See you sir. Now we're on our way to Kecskemét, our SMP plant, and this was our biggest plant actually before we built the Alabama plant. They were awarded with many new programs from our customers, Daimler and the Volkswagen Group, and we're about to go and talk to them. How are you? Raman. Doing great. You? Good to see you. In our plant in Kecskemét. Yes. Look at some awesome growth. How are you managing the growth here given to us by the customers? We are having a great team. In the last few years, we have been managing, you know, build-up of our talents. I am absolutely convinced that we will be able to convert this into a success, as well as this will help us utilize the plant assets. How many will you be with the new orders? Well, we are making about 480,000 bumpers in a year, and our orders are going to increase this number by about 300,000. Wow. Do we have the capacities available for... to be able to handle this order? We have been looking at several scenarios, Raman, and our approach was that by using our sister companies, we are going to ask them for help, built on collaboration, and some of the items that we produce currently will be managed by them, while we can concentrate on our core competence, which is the bumper fascia. Fantastic. we're sharing CapEx with our sister companies... We're sharing CapEx. not investing more, yet bringing more business in-house. Bringing more business in-house. Fantastic. Have you brought new customers to this plant? One of the customers has actually approached us, BMW, to do new product for them. New product that is not yet running in this facility. Mm-hmm. It is going to be one of the competencies that are existent in the Modules and Polymers Division, which we'll be bringing to Kecskemét. Fantastic. Great to see you. Congratulations on the success and keep growing MAHLE Sanden. Thank you very much and see you soon. Wow, that was really interesting. Motherson actually owns a lot of extra land in this area for our future growth ambitions. On to the next. Viva Mexico. We're here in Acuña to see our wire harness plants, because this facility has actually got explosive growth coming up in the next couple of years, we're gonna figure out how they did it. Here we are. We have arrived in the facility in Acuña. Heading up to our plant now. It's one of the largest plants that we have in the region. Almost 10,000 people. Mexico would be the second-largest place for us in wire harness after India. Also, a real statement of joy and pride is that we are the largest Indian employer here in Mexico. Rico, it's great to be here. What an amazing plant. Glad to have you. Thank you so much. To be here with us. I can see it. It goes all the way from one end to the other. I mean, some amazing explosive growth that you're having over here. I want to understand, how did you gain the customers' trust to give you so much business? You know what? A lot of times it comes down to executing on the business that you have today. You do a good job on what the customer's asking, you build the trust, that creates a demand for more. We spend a lot of time focusing on how our customers define success. Mm-hmm. It's not the same for everybody, but then we work relentlessly to try and position our business around delivering that success. Yeah, you're making it, you know, sound easier than it is. The training of the people, there was so much goes into it. That's true. such a large plant. That's true. What are you doing here that's made it so successful? We consider people, our people as our lifeblood. They're our best asset to serve the customer. It's very important that we start there. You know, it's active community involvement, being engaged with the community, making sure that the plant is an extension of their homes. It's clean, it's safe. It's a way for us to tell our people that we value them. From there, they deliver the value… Magic happens. that our customers are trusting us to deliver. Yes, you're absolutely right. Talking about great performance, I mean, you have your traditional boards here, you also got the new age tech boards here. That really enhances the performance of our response time to our customers as well, right? It does. It does. We have a mantra, you know, that, you know, means a lot to us in Mexico. The job of every employee in the company is to support the operator that's doing the value-added jobs that the customers are willing to pay for. This digital board is a perfect example of that. Even with this launch that we have right now, you know, we're humbled by the trust of the customer, our focus isn't to sit and say, "Look what we did. Mm. That's yesterday's job. Today's job is what are we gonna do to earn that trust tomorrow? You know, I can really see that you're living continuous improvement in everything that you do over here, and that's why you guys are so successful. Thank you so much. I'm so proud of you. Keep doing the great job, Rico. Appreciate it. Good. You know, I really wanna thank you for taking the time and coming and seeing, our launch activities here in Acuña 2. It's been great to have you here today. You know, I'd love to have you back to see the, see the production system running full bore for the customer. Absolutely. We'll show it to you again. Some tacos too. Yeah, I look forward to 'em. Thank you very much. Thank you. Thank you for everything. Travel safe. Thank you. Take care. Bye. Mexico check. Off to the next one. Here you saw in the movie real examples of how the Motherson Chakra works. You increase the customer's confidence, you're asked to do more, more products, more locations, more business, continue to perform, you keep on growing. Now, I wanna take you to more details on how we really grow on the organic side, and I'm gonna break it down into few key themes that we believe are gonna have a strong impact on why our organic growth is set for explosive growth coming up. The first one is obviously a no-brainer. We're actually at the lowest point of automotive vehicle production that we have seen in years, and we believe that this is bottoming out. We believe the worst is behind us, and as we move forward, volumes are definitely going to have an uptick. Why? There's a significant amount of demand backlog. two, after COVID, people have really changed their preferences towards having a personal mobility. Most people that could believe that they could do with public transportation or the Ubers and Olas of the world have now realized how vital it is to have a personal mobility option in case of any emergency or strife. In this uncertain world, as you can imagine, most people are gravitating towards it. There's a significant backlog. Volumes are at their lowest point. As the macroeconomic tensions start to ease, we believe that the next few years, and also looking at any of the industry estimates, we believe that volumes are going to uptick, and that obviously is gonna have a dramatic impact on our organic growth and make sure that we grow, outgrow the market as the volumes really pick up. The second important theme that we are seeing that I wanna share with all of you is change in customers' preferences towards high-end vehicles. We are seeing that not only in the developed countries, but also in the emerging countries, we are seeing people wanting to choose more the higher end version of cars, the SUVs, the premium vehicles over entry level. That means the sophistication, the maturity of the customers is getting there, and they're all opting for the premiumization that's happening in the vehicles, and that augurs very well for Motherson. As you know, Motherson is more exposed to the premium side, and our value and our content will keep growing as this continues to play out in the markets that we are present in. Even within the high-end models, there are a lots of variants. Let me give you an example. For our plant in Alabama, where we're making the doors, for Mercedes, there are more than 1,500 variants of just the doors that's possible. If that's mind-boggling, I wanna make you understand that for the, for the Porsches, the very select cars that we make, there are more than 50,000 bumper variants that we are making. That's the level of customization that is being offered to the customers in the premium segment, and that augurs obviously very well for us. When there is more customization, more selections that the consumer has, that obviously drives our content more, our value more. As you can see, for all our product groups, this means significant value and content increase as this is playing out for our markets. Now, this is an illustrative example. It is based on a set of vehicles that we have chosen. It will marginally change depending on the dataset, but largely the direction holds extremely true. To summarize, as the premiumization is happening, as the customization is happening, as the shift is going towards the premium vehicles, we believe that our products are gonna significantly increase in content and value as this shift really happens. Similarly, for as you can see, what I was talking about before, even in the model variants within the shift from low-end to high-end, this is a meaningful increase, and that augurs for all our product groups as well, some more than the others. Of course, this will depend on the country, on the offering that we have within the high-end models, what are the different variants. That's what I'm trying to tell you, that the customization and the selection that the consumers have now really helps Motherson to grow our value proposition as people are moving from low-end to high-end and the premium variant of that high-end as well. Let's talk about the elephant in the room. I'm sure a lot of you have a lot of questions about electrification, electric vehicles. Let me put all those questions to bed with one single comment. Motherson is powertrain agnostic. No matter what car is gonna be the car of the future, and we can really argue till the cows come home, debate endlessly when is it that electrification of vehicles is gonna happen, we believe that our products, bumpers, door trims, mirrors, wiring harnesses, et cetera, will all still be relevant, will all still be value accretive for us, and keep growing in value and content even when this shift happens. We have no meaningful products in the engine, which augurs very well for us. Now, we believe that there is a world out there where all cars will exist, all different options of powertrains, because there's a lot to be done to make only electric a reality. There is infrastructure problems. There is government support that is gonna come in. Regulations that are gonna come in. Technology developments that need to happen. I mean, there is so much out there that is currently unsolved. We believe that the future will be one of mixed reality. There will be ICE engines, there will be electric engines, there will be hybrids, there may be fuel cells. I mean, there is so much that is really out there and the market which is so big and diverse that everything will survive. Again, I would request you to go and see some of our trend zones because there you will see that no matter what is the future, Motherson's parts will be relevant, will have an opportunity for growth, and have a very exciting, bright future for us as the different levels of components do come in from our portfolio. Let's suppose for a minute that this EV does play out exactly how everybody is saying and that all the challenges are overcome. Even then, as you can see, for all our products, there is meaningful increase in our value and content as the shift happens. We are well prepared, we are well equipped, and this is also being shown by our order book. As you can see, our order book is at record levels at $18.2 billion. 37% of this is electric only. That means that the customer have the confidence and trust in us, even with the newer technologies, even with the new vehicles that are coming, Motherson is winning significant orders and is growing in value and in content. Regardless whether these vehicles are taken on by the consumers or they still prefer the ICE engines, Motherson will still find pockets of opportunity for growth and be able to deliver on our organic growth targets for 2025. I hope I was able to explain that to you too well. The final, but perhaps, the one that is most clear is the theme of increasing security and safety in the car. This is undeniably happening in all countries around us, and this is something which is a big force from the regulators as well. If you look at all the things that are going to improve the safety of the car, such as ADAS, airbags, lidar, radar, all these sophisticated sensors, cameras, which is gonna help the drivers be more safe, they're actually coming on our real estate in the car. What do I mean by that? If you look at the car, the front bumper, back bumper, and the two mirrors, that's the key real estate in the exteriors. All these sensors, cameras, et cetera, are all coming onto our products. You as drivers that are using these sensors, cameras to get the information, where are you getting it inside the car? The dashboard. Well, guess what? That's a big part of what Motherson makes as well. We have all the key real estate in the car and a huge opportunity to integrate all these technologies and give the customer one-stop-shop solution to be able to do that. We are completely free. We can design it ourselves, we can do joint ventures, we can do acquisitions, we can do technical assistances, we can work with startups. We have every option available to give the customer a solution that can help them drive into this direction. That is why we are placed in a very exciting point in history with all the key real estate in the car under Motherson's belt. Again, I would direct you guys to the trend zones. You will see a lot of this playing out with our different partnerships, with the new technologies that we are developing, and creating exciting new products for the car makers to be able to offer to the final end customers who are driving these cars. I think I've spoken enough on the automotive side, and you would have gotten a good idea of how we are going to grow on the organic side in the automotive. Now, let's shift the focus a little bit to talk about the non-automotive piece. I'm sure a lot of you have a lot of questions about that as well. I think first it's important for me to tell you, it's not that we've just chosen these new industries by chance. We actually seeded these new industries in the last five-year period. We first sat down and we thought about what are the strengths of Motherson? What is it that makes us really good and strong on the automotive side? Our engineering capability, our operational excellence, our ability to give the customers global supply chain solutions. All these good attributes and strengths came up of why we are strong on the automotive side. We picked them, we analyzed them, and we said, "Where is it that we can use these strengths to give us the highest chance of success in the new industries?" That's how we came up with these four verticals. Now, before I dig into each one of these verticals, I'm obviously going to take you into the next part of the movie, where again, you're going to go and see one of the new facilities in the aerospace, one of the acquisitions that we have done and how wonderfully that is supplementing our growth and also our technology division. MIND is the backbone. New name is MTSL. It's Motherson Technology Services Limited. You'll see how using software competence that we have built in the group over 20 years is really helping us to achieve our growth targets and make our company a secure one and be able to go for our 2025 targets. Let's see it together. Whoa! Mexico is really something, huh? Now we're off to MTSL, formerly known as MIND, the software company of Motherson, and also it's known as the backbone of our entire group. Rajesh, this is a very impressive security control center that we have here. What are some of the new products and features that you're launching to support the group? Beyond our Industry 4.0 solution, which is traditionally has got better adoption because of COVID. Everyone wants their plants to be up and running without the manpower. That is the expectation of people. We want to launch a future-ready Industry 4.0 services, which is completely integrated with cloud and along with our digital services. What happens is we also want to launch this as a PaaS, Platform as a Service. I want this to be easily adaptable and scalable. We want to work on a model where you use and you pay. If you want to use more, you pay more. If you're not using, you pay less. Rajesh, how is MTSL making sure that our company is secure today in this world of so many cyberattacks? Laksh, rightly said, this was there in our mind because we have seen that the cyberattacks have gone multifold in last one or two years. We have invested in world-class industrial security operations center, which you can see here. The first thing, if you see here on this dashboard, that every plant and in every country, we have networked and we are monitoring it live 24/ 7. Once we monitor it, you see here we have the threats which are being detected. As an average, we are getting around about 100 threats, which my team is proactively monitoring and stopping that. This is how we are making sure that the group is absolutely secure. I'm so glad we're keeping security in our own hands and, you know, doing everything proactively to stop it right here. Rajesh, that's really good that we are growing the business within the Motherson group. Tell me something about outside. I have targeted auto manufacturing, health, and pharma segment. The moment my person walks in and says he's from Motherson, he says, "Okay, come. We know you." They know that Motherson runs their plants very effectively. Their processes are very strong. They say, "Can you do the same thing for us?" We have more than now 200 external customers in less than two years. That's fantastic. Not only domestic traction, but internationally as well you are expanding. Yes, yes, now we are present. Well, let's hope you deliver them flawlessly. Thank you very much. Pleasure to be here with us. Thank you very much. Oh, shoot. I need to fill up the tank. Luckily, there's a petrol pump right over here on the left. Hi, Ma. Yeah, Ma. I'll be gone for a while, Ma. It's a long drive. Just started to do all the plants. Yeah, Ma. Seeing a lot of exciting things happening in our plants. Well, I'll be home soon, Ma. Ha, Ma. Yeah, Ma, it's been a long trip. It will take some time. Please don't put that on the film. I just love driving in India. Just such an adventure. We're in Bengaluru now, and we're here to see CIM Tools, the first acquisition of Motherson in the aerospace vertical, and our first step towards diversification as part of our 2025 plan. We are here. We are in the entire structure- Mm. which consists of doors. We are entire on this portion. We are on the ailerons, which is coming in the middle, which is going to balance your, wing movement. Today, except on the engines and the, landing gears and actuators, we are there in the entire aircraft. Today, what investments do you think we should make together as a group? Where is the opportunity? Today, for us to grow in aerospace, there are two key things. one is, how can we strengthen our engineering activity? How can we do this? Whether we do this by acquiring a designing capability or whether we do it in a JV. This is 1 of the key things which we need to do. Coming to the question, how is the integration going with Motherson so far? Seriously or joking? Bit of both. Okay, right. Integration has started off very well. Though as a individual standalone company, CIM Tools. Mm. We had a certain level of growth which we were foreseeing. The problem was of the constraints, what we had as promoters. Who are our investors? We were our investors. Our wife, our family was our investors. Yes. There was nobody else. Now today, it is more disciplined because, and we feel today we are sitting on public money. We can't put a number to integration. That much more responsible. responsibility we have. That much more accountable. That's much more accountable we are. Customers feel that is a huge advantage. You want an inorganic growth, you tell us, we are there. Yeah. What we as individuals dreamt, and five years down the line, I think that has gone X times. No, that's very kind. Very kind words. I love that. Kunal, great acquisition, fantastic people. Just blown away by the shop floor and the products. Where does Motherson go from here? Marvin, this is, you know, this has given us a lot of access to the customer, it's opened up doors not only in growing detailed parts business. Mm-hmm. There are other conversations we're having. We're talking about interconnect systems today. We're talking about plastics, we're talking about interiors, and of course, we're also looking to add capability to CIM Tools to provide better proposition to the customers and be a one-stop shop. Help me out with the stickers, please. Sure. Now that we've had this acquisition, Guna, how do you feel about our Vision 2025? I feel a lot better today. I think there's still a lot to be done, but the access that we have to our customers, just I feel very optimistic about the target. Never give up, buddy. Have a great drive. Thanks for everything. A safe one, and buckle up. Yeah. Absolutely. Wow. That was really awesome, yeah? Motherson's first step in diversification. Motherson CIM Tools, watch out. Big things coming. Now we're off to the next adventure. That was a real familiar face at the gas station, huh? It's not every day that your gas tank gets filled by a superstar. I hope you were able to get an insight on how we are growing with the new verticals as well. You saw that we are using our strengths that we built in the automotive side and moving to new industries such as the aerospace. For us, now I'm gonna dig a bit deeper into each one of these verticals. Each one of these verticals has strategic importance. Not to forget that with the strength that we have on the software side with MTSL, we are able to really transform these companies very fast. Let's get into it. On the aerospace side, I don't need to tell you this, the opportunity is quite large for the products that we are targeting on the top. We already have existing capabilities, and we are using the same machines in the automotive side. Of course, we have to change up what we do in the certifications, et cetera, but that's exactly what we were able to leapfrog with our acquisition with CIM Tools. Some fantastic people shared the similar philosophy, very hungry, very driven, focused on Motherson principles, quite similar to how they were doing their business. You know, that has been an excellent partnership for us. We have been able to obviously use the strength that we have on Motherson to bring it to CIM Tools. CIM Tools' strength with the customers already allowed us to increase the trust with the customers, give the strength of Motherson's capability on a global footprint, be able to expand their order book online, we have seen the results of that very fast. Already, together with Motherson CIM Tools, our order book has doubled in a very short period of time. We are building two more facilities for the increased order book, a lot more things are to come. This is the same play that we want to use for the different verticals that I'm gonna talk about. Partner, get in together, use the strengths of each other, significantly grow the order book, and look at international expansions that can really leapfrog the division into a new level altogether. Some of these products are available in our trend zones in the display center. Please go have a look at them. It makes us extremely proud that now, apart from vehicles that touch land, we are now looking at vehicles that fly in the air as well. The next vertical, the logistics side. The thinking over here was quite simple really. We have a very large internal opportunity in Motherson. We spend more than $300 million on our internal logistics. The idea was get in there, look at consolidating this fragmented supply base, drive synergies, drive benefits to our own group. Once we perfect it, we can take this as a service to outside as well. Already with the 3PL operations, we're handling more than 15,000 shipments per month. This is set to grow on an international base as a next step. We have also identified opportunities in XM and 3PL. Again, this is where we are going to grow moving forward internally first, setting the foundations, getting it right, understanding the business, then going outside, and then to external customers. Secondly, we've also identified packaging. Internal packaging for us is more than a $150 million spend. There's huge opportunities to consolidate this, drive efficiencies, and also have a sustainability angle by doing this in a more sustainable, environment-friendly way with returnable packaging, et cetera. There are new concepts that we are developing here that can address not only our internal spend, but be able to grow this as a service externally as well. Finally, we also have a joint venture. I'm proud to announce that we have partnered up with Hamakyorex Co. Ltd. of Japan. They are a industry leader of transporting finished vehicles from the dealerships... Sorry, from the car factories to the dealerships nationwide. In again, in a short period of time, we're already transporting more than 2,500 cars a month. As the Indian auto industry grows, I think you are all seeing that there is huge upside potential in the growth in the Indian automotive sector. This business is going to grow largely from there as well. Health and medical. As much as I would like to say that we are discovering the next COVID cure, unfortunately we are not. We're again using the strengths of what we have built in the automotive side, engineering, our competencies in plastics, electronics. These are all what we want to supply to OEM manufacturers who are manufacturing devices and are looking for good, reliable suppliers to help their supply chain. When we got a lot of these medical device manufacturers to our facilities on the automotive side, they were blown away. They saw our focus on quality, our focus on zero defect, how we can give them the same quality product regardless of where the world that they are in. While they have a very fragmented supply chain, this is something that excited them very much. As you can see, using the strengths that we have built in Motherson, using our competencies, a very big addressable market, using our synergies, we can grow quite rapidly in the medical space as well. In fact, from getting the confidence from the customers, executing small orders, we are now building our first greenfield plant, especially on the medical side. It's gonna come up in Chennai. It's 10,000 square meters. We're going to introduce new technologies here that are not available for our customers to be sourced from India. This is gonna help us grow the top line and have solid profitability margins as well to make sure that we can deliver 40% growth. This facility is almost up and ready. It will get all the certifications, and again, we'll make. We'll use the same play that we did in the other verticals, what we did in the automotive. Deliver on the customer, first orders, the pilot orders that they're giving us, give them the confidence, and scale this up rapidly, and as well, look at acquisitions to leapfrog the scale as well. Finally, perhaps the most important, the technology side. In the past, this company has only focused on Motherson. It's been a key reason of our success. Our software and technology company, MTSL, is the reason why we are successful in all our acquisitions. The most important thing for us when we do acquisitions is getting reliable data, and this is where MTSL comes in. They go to any facility of ours or the one that we have acquired in the world, very quickly plug into the data, give us the relevant information we need to drive process improvements, to drive operational improvements, to make sure that we can deliver that 40% growth and take good decisions in the business that can help us grow business. Focusing on cloud, focusing on infrastructure, which they have done for us, they're taking these same softwares and now for the first time going outside. Like Rajesh was saying in the video as well, they've got a significant feedback that this is very welcome from the external customers as well. While the Motherson business is growing, you can see that even external business is growing because of the huge pool and reputation that this company has at building very, very low cost, yet very stable, advanced technology and software for manufacturing companies. As you can see, the result is there in front of you, a CAGR of more than 20%, and I believe again, we'll have explosive growth in the future as well. Now that I've explained the organic side, let's tackle the inorganic side, which is going to be obviously the large part of the $36 billion is where that's gonna come from. Before I go in there, of course it's gonna be the next part of the movie, but this part of the movie is gonna focus on something very strategic and importance. We recently announced an acquisition in Japan. For us, this was a very, very strategic move because while we were present there, we didn't have a manufacturing facility in Japan. Now that we will have a manufacturing presence and facility in Japan, it completely changes the future for Motherson in that region and the possibilities we have with Japanese OEMs. Let's understand why. Papa, we're back in Japan. Yeah. where it all started. Absolutely. It was way back in 1979. Think about it, you know. I think the difference now is that this time we are also giving back. It's like a full circle, Papa. First we came, you know, looking for help to get started and now the customers are asking us to come and support them in their operations here. That's true, which is fantastic between the two countries, I think. Now we have our first manufacturing plant in Japan. Your dream. You'll have to stop. Can you put this off? Because it keeps talking. The lady keeps talking. Sorry. No problem. I think now the chance is very good for you to actually make it happen. I remember the guy called Mr. Ito, he tells me, "I have to teach you how to use chopsticks." Guess what? I try to catch the peas, and they go flying all over the room. Yet they care about greens. You see patches of green, small kind of lungs everywhere, wherever they get a chance. This opportunity that you got of owning the company in Japan will help us to pay back better. There's so much to learn from Japan. Yeah. Tremendous. How they use space, how disciplined they are. They will find ways and means to improve on almost anything and everything. They think about Kaizen, suggestions. Think about all those things. We're meeting the SAMIL team and the chairman of the Japan team today for lunch. Just the space and the Japanese food. The rice. Wow. Yamashita, which of the options looks most promising? One is, mirror business. This is the M&A. We're getting the facility in Japan in the group. Also we're getting a facility in Hamamatsu, supply to the passenger car maker. This is one of the big step for us. I agree with you because most probably, one of the thing that was missing was, engineering base, design base, production base, and Japanese people, Japanese plant, Japanese workforce, that gives a lot of confidence to the OEMs. The customer ask us always, "Do you have a facility?" No, we don't have any facility for logistics. Not so happy to say that, but now it's... I want to have a facility like our mirror business, so we can easily approach the Japanese customer in the future. Yes. The other, this thing is also that we have gone from commercial vehicles to passenger vehicles for the first time. This is very important to open up in the business. How did you do it? Everything had to be done, less than three months because the production was getting stopped with the customer. How did you do it? We asked Hamakyorex Co. Ltd. to help us because we had a relationship for this few years since when we had a joint venture with them named Hamax in India. They have helped us a lot. Yeah. They have sent the people and give the, you know, the premises for us, and we can set up the warehouse in Japan. Also they have sent technical advisors. With great communication, amazing teamwork, and using our strength of our partnerships, you were able to make it happen. Yes. That's one thing that Motherson has always done. It has kept all three avenues very strong. Can we do it ourselves? Can we do a joint venture? Then if nothing, can we do an acquisition? These three avenues, whatever happens in the future also must be kept open. Matsumo-san. Yes. How do you feel about... It looks very small, but I think it's important. What do you think about the HCO, this thing will do to SMR? This HCO M&A will bring a lot to our company, SMR and Motherson as well, because this is our first manufacturing footprint in Japan. Also, it's the first development center we will get in Japan as well. Many of the Japanese OEM makes their global models, design their global models and develop in Japan, and we didn't have that access to those global models. Now with their strong technical support there, we'll be able to not only grow business in Japan, but also globally as well. Now that we have acquired the company in true Motherson spirit of ROAS of 40%, what are the opportunities to improve the bottom line so that we can deliver our return as well to the shareholders? The synergies will be to have the Motherson's global strength in purchasing or supplying and also opportunity to expand into other areas, locations outside of Japan. Well, thank you so much, gentlemen. It's been really amazing trip. What I'm taking with me from this trip is that we are really building a solid foundation for Motherson, for our growth, not only in the region for the customers here, but for their global ambitions of what they want to do. It's really exciting, and it's amazing to sit together with all of you and eat and talk and laugh face to face and celebrate the success that you have made in such a short time. Thank you so much. Thank you so much as well. Thank you. It's very good. Thank you very much. Good trip. It's really good. Thank you very much. Another chapter done. Off to the next one. I hope it was easy for you to understand how important actually being in Japan is for us. Actually, it was always my father's dream to have a manufacturing facility in Japan since we started our first business relationship in Japan, and it's finally a reality. Of course, the important bit is that look at the influence of Japanese OEMs in the world today. They have 30% market share of all cars that are produced in the world, they have a very prominent position and something that is extremely important for us. Like was explained in the video, a lot of the decisions for these platforms, not just in Japan, but globally for them, are made in Japan. When you do have a facility in the local area, talking real time to the carmakers, talking in their language with the local face, it has a completely different impact and opens up a lot more opportunities for Motherson to not just grow on the mirror side through the Ichiko acquisition, but also for our new footprints. Just like Ichiko, in the short period of time of two and half years, we have announced seven acquisitions. We have been extremely picky because of the tough market conditions, and all of these acquisitions have strategic importance to us. We only choose those acquisitions where we see a clear path to 40% growth. Because the world is actually quite a difficult place to be in, and there is a very tough market environment. Interest rates are at record levels. The leverage market has practically disappeared. Players are over-leveraged as they have taken on significant amounts of debt by mistiming the market. The result is that lesser deals are happening because there aren't enough players who have the appetite to go out and do acquisitions. Yet the macroeconomic problems remain. Our customers are having problems with suppliers who are not able to keep up. The result of that, Motherson becomes the partner of choice. Why? Because the customers are looking for strong partners who are able to absorb these underperforming assets. Motherson, with a strong balance sheet, being a trusted partner, and our ability to quickly turn around these companies becomes the partner of choice for car makers. Our pipeline is completely full. We are assessing more than 50 live opportunities right now, handheld by the customer. Again, the reason why customer is choosing us is because we are a focused long-term partner for them. Motherson does not buy and sell companies. Motherson buys and grows companies. Motherson invests in companies. We make these companies sustainable and competitive over the long term. Our pipeline is full. As you can see, it's not just in the products that we are in. It's in different products. It's also in different verticals. I'm sure that some of these will click, which will help us to get to our $36 billion figure. Don't be fooled. We don't get too excited just looking at the opportunities that are over there. We have a very clear and robust evaluation framework, which is very stringently controlled in our group. The first bit, of course, it has to have the customer's blessing. If the customer is not supporting the acquisition, Motherson will not even consider it, no matter how attractive it looks. It has to be able to mark the financial criteria, and we must see a path to be able to get it to 40%. Our operating teams must tell us what are the synergies that they can drive, what are the things that we can do to do better than what they're already doing, and have a better fate for this company than it was in the past. Every single acquisition is led by an operating team who will handhold it, who will take the responsibility to put the Motherson DNA, to put the Motherson values in it and make sure that it gets turned around in the shortest period of time, and not that it is just, you know, an orphan somewhere and hoping that things will change for the future. No. Very, very strong control over which acquisitions we go for. We're extremely picky. There has to be a leading team which will take the responsibility and say, "Yes, I will drive this acquisition. I will take the responsibility to make sure that it gets turned around." That's how we can do multiple acquisitions at the same time. Different teams focus on different parts, have responsibilities of different areas of growth, we can do multiple acquisitions at the same time. That's all great. The pipeline is full, I'm sure your question will be: Does Motherson have the financial wherewithal to go for these acquisitions? Let's look at another illustrative example. Based on the analyst reports that you guys are writing, what headroom does Motherson have? Based on the profitability that you guys envisage us to have, of course, I'm gonna push the teams to do even better than this. Envisaging on average, what is the profitability that you guys envisage Motherson to have in the next few years, and the evening up of the macroeconomic conditions which will, you know, help us with the working capital release, et cetera. We believe that on a conservative side, we will have about $2.3 billion of headroom growth for ammunition to go after acquisitions. $2.3 billion. You still have targeting to be $36 billion. What is $2.3 billion going to get us? $2.3 billion is a conservative headroom that we have. We believe that having still following the Motherson principles and the values of being value buys, we're not gonna go and buy something ridiculous. We are going to still stay, maintain our financial parameters. We will look for companies that are not operationally so well off, 'cause that's where we can really drive our synergies and deliver a 40% growth. Looking at companies and again, this is an illustrative example to give you an idea of what is possible for us to reach on the top line. Looking at a company at 5x enterprise value to EBITDA, with still maintaining the 2.5x financial leverage principle that we have with basic 6% EBITDA margins. We believe that a $15 billion top-line company is available for Motherson to acquire. This $15 billion might be three $5 billion ones, one big one, I don't know. It will depend on what opportunity comes at what time and which customer is allowing us to go and really do it. $36 billion is much closer than we do, you know, fear it to be like too far away. No, it's actually possible with just one acquisition. Even if these financial parameters are a little bit different to what we end up acquiring, we have more levers in our hand. For me and for my father, equity is very, very important. It's very, very valuable to us. For us to be able to hit our targets where all the financial metrics have been reached, and if there is some stress on the leverage policy, we will look to even at last, as a last case scenario, dilute or raise equity or use our equity as currency to do mergers or do partial stakes. Many opportunities are there. Like I said, for Vision 2025, we're going to have to have a different approach to what we have had so far to deal with the new circumstances that there are in the market. We are going to be creative, we are going to be imaginators true to our DNA, and we'll figure out a good path to get to $36 billion while maintaining our financial discipline. One acquisition can change the whole situation up for us. Please don't think that we are too far away from $36 billion. One acquisition in itself can change the whole game. We're not getting excited. We are driving with caution, and we are making sure that we stay, remain focused on value buys and don't make any mistakes with large acquisitions, making sure that everybody is well disciplined in this approach. I'd like to summarize now with what is it going to be that is going to get us to the $36 billion target. I have taken you through the organic side, I have taken you through the inorganic side. I wanna summarize that. The first step, like I said at the start, the volume growth. The industry is at the bottom. As the volume upticks, our organic growth is gonna grow. The second one is electrification. As electrification is going to happen, our content is going to grow. You saw that in the charts that I showed before. The content and value increase to the shift in consumer preferences on the preferences of car. As they move from the lower-end models to the next end, you will see that again our content and our sales is going to grow. Finally, supplementing that it with the acquisition opportunities, we layer that up with all these drives that are gonna happen on the organic side. The inorganic one large acquisition that could take us up to $15 billion on the conservative side. We are very close to the $36 billion. With that, I complete the chapter of revenue growth and move to the next chapter of our journey, which is 3CX10. This is a fundamental pillar of Motherson. The reason why we have been able to grow over our entire history is because we are focused on diversification. 3CX10 means no country, no customer, no component to be more than 10% of our business. This was all the way up to 90% when we started. As you can imagine, when my father started the business, we were only focused on Maruti Suzuki. Over the gradual five years times, we have got this further and further down. What this enables us to do is to be able to grow even though there are problems in the world today. As always, I'm gonna take you on the movie, on the journey with me in the movie, I'm gonna take you to three plants and talk with Char, who's the head of our polymer division, and show you three locations in Turkey, also in Hungary and Morocco, where we have significantly been able to grow through the diversification strategy. Let's see how. It's always nice to be back in nature and seeing you in your prime. We discussed with you about 3CX10, how that's going. You know, in the last five-year plan we had 3CX15. Yes. This 5-year plan we're moving to 3CX10. Do you think it's helping us? Oh, my God, this is absolutely quintessentially important for us. I mean, it's pivotal to have diversification of customers, product, and locations. Today one OEM is doing excellent, and the other ones are poorly, and if you don't have those multiples who use Soidas, then you are too exposed to one or another, and then you are following that pendulum from good days to bad days. So diversification in 3CX has been very, very important for us. Glad to hear that. You know, as these trends are coming towards electrification... Mm. et cetera, we must not forget that all these developments are happening in the core countries where the customers- Uh-huh. you know, have started from. Mm-hmm. Being close to them, like you were saying, enables us to get first view at the engineering, at the opportunity. True, true. To win those programs and to be their partners globally. Being in the premium vehicles like Porsche, like BMW, Daimler, and, and you name them, you know, helps to be in that forefront, that avant-garde of the technology. That has been a very important part of the diversification. Mm. you know, component diversification where, you know, we have a whole, spectrum of a proposition that makes us, so much stronger and more balanced in our portfolio. Our ambition is today, to go into aerospace, to logistics, medical, to capitalize on those lessons learned that we had, again, that excellence knowledge of how to run a business, successfully in very tough automotive environment and take those learnings and apply to those industries where we are not yet present. Next five-year plan we're gonna go for 3CX5. You wanna be ready for that? We are always looking forward to that. Well, it's a real pleasure to be here with you, Char. Mm-hmm. always great to have a chat with you and see how well the group is progressing. Glad to be on the journey with you, man. Where are you going next? Oh, who knows? Well, I would propose or suggest to you that you should go to Morfoma Drive Over. Mm. SMR has launched very successfully a new camera monitoring system. A good place to go is also Morocco. Just recently opened a new facility in Tangier. Well, I would suggest to go to Turkey, you know, Plast-Met. It's a new facility for SMR. Well, Bombardier in UK would be probably a good idea. Yeah. I mean, there is so many places, boss. Good luck. With this highly volatile world that we live in, we want to make sure that not all our eggs are at any time in one basket. Guys, we're in Turkey. We're taking the ferry across the Bosphorus. Turkey is very important because it's a new country for us. It opens up a completely new market, and we love the Bosphorus. Other than it being an amazing view, this also serves as a very important waterway between the Mediterranean and the Black Sea. Just for your information. Here we are. This is Maplasmat. Maplasmat. Hello, how are you? Yummy. Thank you. Tell me, how does it feel like being part of the Motherson family? It was very exciting period. What opportunities has that opened up for the business? Two opportunities for Motherson experienced tooling shop. For us also, we will have a chance to work Tier 1 to OEM. That makes sense. What are the real operational improvements now that are possible now that you're part of Motherson? Robust automotive process and the automations. Additionally, with these opportunities, we will improve our process. This shop floor produce the very detailed tools for OEMs. High accuracy, and it has to be high aesthetics also. Mm-hmm. They have a lot of skill to make the tools. Yes, of course. They are working more than 10 and 15 years. What does, you know, bringing a new country, Turkey, you think bring for Motherson? The new customers and the new product portfolio, and we can provide the tools, all Motherson companies all over the world, east and west. Yes. That's why we have a bridge for supply chain and material flow. It becomes an important hub that we can supply all our customers, not only in Europe... Yes. Also for the growth ambitions for other places in the world. Yes. A lot of capability here. That's what I've seen when I've walked around, and I've seen the people. They're very passionate. Turkish people really like work. They put their hearts. That's what we love at Motherson, you know? Yes. I'm sure it'll open up a lot of opportunities for us. Bye. Bye. For 3CX10 component, we are now going to SMR's plant in Hungary in Mosonmagyaróvár. This is an exciting new technology that they have put on the truck. Hi. How are you? Welcome to us. Come in. Which we can use for others because that's- Levente, what's your approach to 3CX10 here in Hungary? 3CX10 is extremely important for us. First of all, from the customer point of view. We started after the Motherson acquisition, six customers, and now 17 customers. This will give us a lot of opportunity to grow also our other product range. Levente, how did you go about developing this complex camera technology? The biggest difficulty was how to transfer from a mechanical world, mechanical engineering world, how to transfer everything into electronics, software, hardware, optics, safety, we did it. Tell me about these special yellow marker features that I'm seeing on the screen? It's called overlays. Mm-hmm. They support the truck driver to find the accurate position in a 10 centimeters accuracy. Ten centimeters. Maximum. Wow. It looks fantastic. Great job. Thank you. Warning that Mr. Levente is coming. Yes, there is a moving object. What were the advantages that the customer saw when they saw this product? The image quality improvements. We use two cameras per wings. The blind spot elimination by this system is the significant achievement on the development side. Very exciting product. Thank you very much. You're welcome. You know, 3CX10 is such a big driver for the group. Absolutely. That's why this facility is special because it's actually bringing in, you know, a new perspective to Motherson. Yes. We have a quite long relationship and cooperation in the rolling stock industry. Yeah ...which is a non-automotive business to Motherson. We were luckily joining the Motherson family in 2017. Shortly after that, our customer, Bombardier Transportation those days, gave us the opportunity to look into the assets here in the U.K. It would be for us, a new customer in U.K., it would be for us new products here in that country. We were so lucky to close the deal in 2019. We took over a great team here in U.K., and we also took over new products, which we are supplying here in the United Kingdom to the rolling stock market. Amazing. I see such long wire harness lines. I've never really seen that before, but, you know, you doing this complex job for the customer, I'm sure now the customer being happy with the work that we're doing here is opening up possibilities to doing even more. The customer wants us now, for instance, to go to Australia. He gave us opportunities in Mexico. He gave us opportunities in the U.S. We have started recently activities in India for the rolling stock market. It was an absolutely great move to expand, to grow. Oh, fantastic. You know, helps us to balance out what's happening in the automotive side by, you know, getting into more of the non-automotive. What I'm hearing from you is wire harness is not gonna be the end. There's gonna be multiple products that open up. That's exciting. This has opened up many doors with the customers, and I look forward that, you know, this will allow us to expand even faster and bring in diversification for the group. Great to see you, Andre. Yeah. Thank you, Vaaman. Take care. Cheers. Thank you. I'm really glad that we got to see that facility at Derby. You know, it's amazing to see how we are diversifying out of the automotive with new customers here in the U.K, but it's also gonna open up doors to do a lot more products for these new customers and help us deliver Route 36 and our Vision 2025. Off to the next one. We are going to the Moroccan plant now? The new one? Yes, the new one. Wow. In spite of the COVID, we've built the plant here. Amazing. Absolutely. It's a expansion for us in the region from the old plant to the new plant. Yeah. How far is the factory, Vaman? To be honest, though, we should have been there by now. I am actually not getting any good signal anymore. Might have missed a turn. Are you getting signal on your phone? No. At the roundabout, take the second exit. You're right, Papa. This definitely does not look like our factory. Boss, we are going to the beach. Oh. Wow. Better ask a camel person, yeah? You sure? You think he'll know? Yeah, sure. Why not? Bonjour, monsieur. We are, Motherson factory. Motherson. Motherson. Yes. Motherson. Yes. Yes, yes. Motherson that way. Looks nice, no? SMRC is proud to have added a spot on Motherson map, because we are the only company within Motherson who is in Morocco. We consider Morocco as a country that will align perfectly with the strategy of our group. Morocco is at the border of Southern Europe. Mm. Northern Africa, and we even export to Argentina. Oh. The target for the country is to reach 1 million cars. Wow. per year. How big is this plant as compared to the last plant? This plant is 3 times more than. Three times. old plant. Wow. Three times. That's amazing. In terms of customer, what we believe is that there will be OEM generalists from Germany coming here, and we know that there are important talks between the Morocco government. Mm. Asian OEMs. Wow. If you ask our plant manager, he'll tell you that his aspiration is $100 million. $100 million. We'll challenge him. You know, how are you building the Motherson brand here and attracting more and more people to come to this factory to work? It's, it was difficulty in the first, because, changing the town- Mm. far from family. Mm. We bring the team here during the construction. Mm. We show the new plant with the best condition. Mm. We take in charge the transportation costs. How many of them moved from the old plant to the new plant? All. All. 100%. Wow. I think you have a wonderful team. You've demonstrated you can move from one plant to a much bigger plant, three times bigger, without compromising on quality or the customers. It's a wonderful job done by you, and I hope that we can build this plant even 10 times bigger. Papa, I actually got. Mm. Really interesting call from the customer. Oh. There's a big opportunity for us. Uh-huh. I have to go look at it today. You go. I'll stay back here for the inauguration tomorrow. Inauguration. Will do that. We'll catch up today, after tomorrow. Okay. See you. I'd like to say I'm really impressed by how this country has changed over the years and impressed how you have all built this great new facility. In case you guys are not believing our automotive ambitions, hopefully by now you are believing our theatrical and Bollywood ambitions. Just in case this doesn't work out, there is a future in something else. The next company will be launched will be called SOFHA Productions. Son, father, sofa. No? No? Okay. Anyway. Where are we with the 3CX10? On the customer side, we are practically there. No customer is larger than 10% of our business. That doesn't mean that we say no to business. We grow with the customers wherever there is opportunity and of course work on the other customers to make it more in balance as we get the growth opportunities. It's very important to realize that even on the country side, we have biggest focus in India. It is our deep, deep root. 24% of our business is still coming from our roots, which is India. Also important to realize that 57% of our exposure is in emerging markets, which is where we believe a lot of the growth is really gonna come. The merger of SAMIL has significantly helped the diversification and also opened up new opportunities for us for growth in these new verticals where we believe, just like we did with the mirror business, we will have opportunities to do large acquisitions and further balance this chart out. Again, we have to follow where the opportunities are, and as you can see, India still remains a core focus and market for us, and so does the emerging markets. On the component side, wire harness is the largest part of our business. It's about 29%. This is also changing as we continue to do more and more acquisitions. You have to understand, the biggest opportunities and acquisitions do come in the products that we're in, so we're not gonna say no to those opportunities. As the new verticals, the new industries, the new products continue to grow, these things will significantly help us to grow and balance out this 3CX10 component as well. The customer is giving us more opportunities, and we are confident that as we move towards 2025, you will see a lot more verticals and a lot more balance in this also come as we get closer to 2025. Now, I'm moving to the next chapter, which is the chapter of ROAS. This is, of course, the fundamental philosophy of Motherson. We do not guide by margins. We do stay focused on ROAS. This will take us to the next part of the movie where I will chat with Rajat, who's heading our vision systems, and we're going to visit two plants. One is SMR's plant in U.S.A, Michigan, and second, a polymer plant in Meeth, where you will see that even though they have grown significantly in size in these locations, they have still managed to not only defend their ROAS but increase ROAS, which is a bit counterintuitive to how people think about it. Let's see what they were able to achieve. Hey, Vaman. Hi, Rajat. How are you? How are you? Good to see you. Yeah. It's all good. How's your road trip going? Oh, so far, so good. Yeah. Traveling around the world. Yeah, I know. Must be warm out here for you, yeah? Yeah. Actually, it's, the weather is quite nice compared to the colder places I have to go after this. I'm sure. I'm sure. So... How are things going with you? Yeah, all good. All good. Yeah. How is our ROAS targets in the group looking, and why do you think they're so important? Well, ROAS, you know, I mean, our philosophy at Motherson has always been that top line is vanity, bottom line is sanity, and cash in bank is the reality. ROAS is one metric which I think combines the aspects of both cash in bank and profitability, and it's I think the real metrics to measure our operational performance. I think another thing, what makes ROAS very important is that it touches and connects to everything and everybody in the organization, right? If somebody's making an improvement on the shop floor, improving the machine utilization, for example, or somebody is saving space somewhere, all of that has always a positive effect on ROAS. People can relate to ROAS, and they can feel what difference they can make to the organization. Mm. Right? That's exactly the reason why I think ROAS is very, very important for us. You know, our group is so diversified, so many different products. It's not one product, so it's, you know, EBITDA margins are misleading, right? In that sense. I think you miss out on all these aspects, right? If you just focus on EBITDA, you don't worry about investments, you don't worry about efficiencies, you don't worry about utilization. Here now with ROAS, I think there is this very strong understanding in all the plants that we have to sweat our assets. We have to make the maximum out of them, right? Can we work in four shift pattern? Can we work six days? Can we work seven days? Yeah. Those are the finer aspects that come out, you know, when you really look at ROAS. Right. When it comes to ROAS, everybody can contribute in their small way, you know. Right ...in their own way. The tea is good. You can have some tea as well, yeah. Rajat, in Motherson, how are we dealing with all this volatility that's happening in the world today? Look, we follow our mantra of read the market, right? It's all about looking at all the costs. It is about eliminating the waste. It is about profit improvement projects that we start in the plants, we are also working very closely with our customers. Yes ...to address the inflationary impact that we are facing, right? That is definitely going to be bringing improvements. At the end, I think, we've all seen in the past that, you know, Motherson always emerges stronger, once all these things settle down. Motherson will always prevail. I'm looking forward to record those numbers from you in the future. Absolutely. For sure. Rajat Yeah. Rajat, which location should I go to next? I would suggest, you can go to Meeth, Pune. I think that's another good plant doing very well in the ROAS. Then, last but not the least, you should go to SMR, U.S.A, right? Yeah, absolutely. Yeah. Samrat, this plant looks completely different from where we started. You know, we had a lot of trouble in this plant when we first got it. It was completely negative ROAS. You've done a wonderful job. I think everything which could go wrong in a plant, this was an example of what went wrong. Low utilization, equipment not really maintained... Right ... people not really having so much focus, et cetera, which all resulted in a very demotivated team. What do you think was the single most important turning point of all this success? The biggest pivot was this paint shop. Paint shop, as you know, is a very high, CapEx-driven, item. When we changed the manual to an auto-automatic paint shop, that was our biggest turning point. Kudos to the team here which made that happen and did not stop any deliveries to the customer. It was a very difficult job because it was already running. Wow, you completely changed it without even stopping. Without- Affecting the customer design at all. Yes, sir. That is an amazing example of improvisation. Yes. Yes ... because you guys really got it right. Investing in the paint shop was one thing. Yeah. How did you change the morale of the people to get behind this, you know, improvement culture? What we did, actually, we have called all the people, and we have told them what is Kaizen. You know, all across the plant we were getting all suggestions. That was the key of the this thing. That dramatically improved your QCDDMSES rating. Yes. Yes Everything went up from there. Yes. Yes. CO2, we are flushing, flooding on this bumper to remove all particles. Same paint shop, just with the automation and nearly 1/3 of the workforce, which used to be in the paint shop. That productivity gain really motivated everybody and improved quality, improved productivity, and 100% delivery. Another great actual growth story of this plant is every equipment that you see is made by Motherson. This assembly line is made by Motherson. The Poka-yoke is made by Motherson. Yeah. The chilling plants are made by Matsui. Yeah. The robos on the machine are by Robis. Yeah. Everything that you can see. Amazing is a Motherson vertically integrated plant, and hence it's really a system. I actually remember coming to this plant when the customer was upset. It wasn't a, it was a customer meeting, it was a customer beating. Oh. Don't wanna do that ever. Gentlemen, what an amazing experience for me here. Saw such a transformation that's happened from where you guys were to the ultimate place, which is complete customer satisfaction. I'm really proud of what you guys are doing, and you're really taking Motherson to the next level. Keep it up. Thank you, sir. All the best for the growth. Thank you. Look forward to seeing you again. Thank you, sir. Great job done. Really proud of you. Thank you. All the best, Aman. Thank you. Take care. Thank you. Bye. Bye. Bye-bye. Which is the most popular color? Most all the color is white. The country with the maximum dust- Yeah the most popular is white. White. White. Here we are in Michigan to see SMR plant in Marysville. It's a very special plant. It has grown significantly in size since Motherson took this company over. In fact, 7x over the last 12 years. The more special bit is that it has maintained and grown its growth while growing in size. We're gonna go there and talk to Sri, who is heading this plant, exactly how he's done it. Sri, it's great to see you after such a long time. You too. Welcome, Vaman. Thank you. Been happy to be back in the plant, you know. We're super excited to see you. Thank you, what a amazing factory setup and floor that you have. It's always been one of the benchmark plants for the Visiocorp system. You know, it's been a benchmark for growth delivery, you know, significantly since we started. How have you done this? Thank you for the kind words, Vaman. It's the entire team, like entire team of Motherson that has contributed directly or indirectly onto this whole journey of it. When Motherson came on board, and as the stability came through, the customers came around, and then we started winning more business, and more and more business, which required us to grow in multiple folds. During that timeframe, we had to make a decision on whether we expand here. Mm. ... locally- Mm or we expand in another place. Mm. Like even in a different country. As a team, we all sat together with the guidance of the group and everyone. What we came around is the best way to capture or seize this moment of exponential growth is double down right here and bring in more people through training and all that. The results would be phenomenal. Rather than going somewhere completely new and starting from scratch. Exactly. The thing is, being close to the customer- Mm always pays back. You are right there, you can get the ideas from there. Mm. You can take the requirements from there. Mm. Be able to deliver them right away. Fantastic. You know, when you're growing, of course, there's pressure on growth, right? How did you break up this growth target and make sure that you guys never went down on growth and continued to increase it? With this growth, we were able to reduce our overhead structure. Mm. For example, you set up 2 plants. Mm. You need different management structure and all that stuff. Correct. Right now we operate 6 plants around over here. Wow. All in one management structure. Every level of the organization, they have objectives, like subset objectives, not just the growth number, that like what needs to be worked on, and it is drilled down to the entire organization. You break it down into subsegments, and if everybody delivers there, automatically. A-absolutely. you deliver the top line. To deliver in growth and all the other aspects of the business. Fantastic, Sri. Sri, I'm so excited to see all the new product launches that are gonna come on, not just the legacy cars, but also the new age platforms. It's so proud that, you know, your products here, our products here together are gonna be in those cars to be a part of Motherson. I'm so proud of you. Well done. Awesome. Thanks, Ron. Great to see you. Thank you very much. All the best. Thank you. We will be submitting this movie to the Oscars this year in the category of best corporate movie. Looking forward to your support and votes to make this a winner and add to our portfolio. In all seriousness, you saw real impacts of growth. Sometimes you have to invest in companies to be able to deliver a better growth. It is a bit counterintuitive sometimes. Sometimes, you know, you have to understand that they obviously, in the shorter impact, in the shorter time frame, putting more investments in reduces the growth. By doing that, if you can significantly improve the efficiencies, reduce the customer defects, delight the customer, actually that pays back in multifold. You saw a real example of how investing re-results in increase of growth. That's why we tell you that it is actually an art. It's actually something that takes five to seven years to really build a company with sustainable advantage. You have to think about the long term. That's why there's a journey where we give our plants up to five years to be able to hit that 40% growth, is not something that happens overnight. We also saw how engagement of the teams, really breaking it down, taking the growth, giving it to individual departments and the people, and investing in where we are already in high-cost countries right next to the car makers. Being able to take their direct feedback also results in significantly increasing business and therefore increasing growth. As I move forward to the next slide, CapEx is a big impact on growth. As you can see, Motherson over the last few years has significantly reduced our CapEx in the sense that all the investments that were required for the new order wins, for our order book that I showed you before of record, those investments are already there. Don't let again the FY 2022 number put you off. That's because of the merger of SAMIL and all of those increase in the SAMIL companies of CapEx also came. In general, as you can see, the overall trend is in a very positive direction. As the uptick in the volumes that I showed you earlier, this CapEx that we've already invested is good enough to take us into the future and deliver both top line and bottom line results, again, getting us close to the 2025 mark. The second thing that we do, which is very pertinent to increasing the growth, is keeping a focus on each and every unit. We don't look at companies on a consolidated basis. As you can imagine, we have more than 310 facilities in the group. It's very easy for us to consolidate and only look at it as a company. No, we go down to the unit level. Every single year, each and every unit gives us a budget of what they are going to produce, what CapEx they're going to use, and how are they gonna drive to profitability. As we are growing and we're acquiring different companies, sick companies in greenfield, there are gonna be companies which we call red units, which are EBITDA loss-making. Then there are companies that we classify as yellow units, which are EBITDA positive, but EBIT still negative. Green units, which are both EBITDA and EBIT positive. Our endeavor is to focus on these red and yellow units and push them towards green and push the green units even into further green with our focus and complete diligence, working with those teams in those units and pushing them further and further. I'm proud to say that as compared to 2015, 2016, where we had 37 red and yellow units, through very focused efforts and very diligent work done by the teams, already 26 of them are green. Even though 11 are red and yellow because of the current macroeconomic environment, I am sure these 11 will too in very short time be in green, which again will push the growth further up for those units. Next slide. I'm going to give you an example of a company. This was in the shock absorbers company, which again, we were asked by the customer, handpicked by them to look at this company. They were loss-making in FY 2016. Motherson came in, worked together with a partner. In a very short period of time, already got it down from a red unit to a yellow unit, achieved breakeven. Made the necessary investments in there, won the new customer orders, and now as you can see in the H1 is already delivering close to a 20% ROAS. This too, in the next couple of years will progress towards that 40% ROAS. This is an art at Motherson. This is something that we have perfected. There are many such examples where we go, where nobody else wants to go. Go to these troubled companies, go to these sick companies, use the Motherson DNA, the tried and tested formula of our operational excellence, our DNA, inject it, hand-hold it, and convert them to a green unit. If you move to the next slide, you will see this is a scattergraph of all our units. You will see that there is still a few units which are in the red and yellow category. This is what we're gonna be focusing on for the next two and half years. If we take these red and yellow units and convert them to break even, already our ROAS will double at the group level. If we are able to convert these red and yellow units and be able to deliver the average profitability of what we're having at the green, our ROAS triples up. In summary, we're not too far from being able to hit that 40% ROAS. It's completely possible. Of course, we have to have some luck with the macroeconomic environment as well, but every single effort is being made by our teams in a focused manner on every single unit to try and get them into that green zone and be able to hit that 40% ROAS. Not only on the operational side, this is where MTSL, this is where the software side, this is where the real genius of Motherson comes in. Of course, there are only so much you can drive on the operational side, but if you can supplement it with our own automation, low cost automation. What we are doing in Chennai, we are building our own AGVs, building our own software for cobots, using digital boards, using ways that we can reduce the cost in the high-cost countries by bringing Motherson designed software and hardware and be able to reduce the cost. That adds a huge layer for us to be able to increase our profitability and keep the business in-house where it would be give it to outside suppliers. Not only that, we have successfully built in the last five-year period, a global strategic procurement office based out of Dubai, which now with the use of technology, can give information to any unit of ours worldwide, which is the best supplier at the best cost for what they want to purchase. It's a huge database. It's a huge advantage because everything is consolidated in one area, and everybody can drive advantage and procure now at the best cost possible for the entire group. Finally, the management have a complete free hand in the sense they are completely empowered and responsible. They build and choose what MIS systems they wanna see. What are the information systems they need from the group, depending on their product, depending on their customer, depending on their location? What do they want to see? Our software company very quickly transforms that into a software which takes a lot of the value add work out, and the teams again can get real-time information from their operations and be able to drive business decisions which improves ROAS and helps Motherson, you know, hit that 40% target. I would like to summarize this chapter as well. What are the key drivers that is gonna help us get to that 40% ROAS? Of course, I spoke about the lower CapEx. We're at the end of the CapEx cycle. There is very little that needs to be invested now to be able to deliver on our order book. As the macroeconomic situation improves, there'll be normalization of the working capital. This will result in a lot of cash being freed up from the companies. As you can imagine with the semiconductor shortage, we've all had to sit on a lot of inventory because we don't know when the customer will start and go. Also, with the other issues that are there, we believe that this will settle down in the next couple of quarters and a ton of cash will be released. Our focus on the red and yellow units, again, on the budgeting cycle this time, we are going to be relentless trying to push the red and yellow units into the green zone and push the green units to do even better, and that again, will result in higher profitability and higher ROAS for the group. Finally, like I said, as the macroeconomic condition eases up, the volumes uptick, it's a no-brainer. We'll have economies of scale. We will be able to use the leverage, and we will get as close to that 40% target as we can. I'm quite confident you will see this happen in the next few years. With that chapter complete, I'm moving to one of the last two chapters in the entire presentation, which is on dividend payout. This is quite important to all of you as investors and us as shareholders as well. You will see that throughout the history of Motherson, we have maintained the dividend payout. Even in some of the most tough conditions, such as the global financial crisis or during COVID, we actually increased the payout ratio for our shareholders. This shows a lot of discipline by our operating teams, a lot of focus, made sure that we conserved cash and paid cash out when we knew that there was a need of cash to be paid out, yet conserving enough to be able to invest in our company and go for growth. So our payout ratio has been maintained. In fact, we've even exceeded it in the last few years in some of the most tough times that you've seen on the automotive side. That will remain for the foreseeable future. Now, I'm gonna take your attention away from numbers and go into another very key theme in Motherson that has been developing over the last few years. This chapter is about sustainability. Sustainability is becoming increasingly important for all of us. I think Motherson has taken a bold step and have declared our ambitions in sustainability, and we really want to be a leader here in the steps that we are taking to make sure that we can deliver our goals of sustainability as we move forward. Next part of the movie is me talking to Barry, who's responsible for sustainability in our group. He's here. You'll be able to talk to him afterwards as well. You will see how sustainability is taking center stage in Motherson in everything that we do, still while keeping our growth, ambition, and target intact for 2025. Let's have a look. Fancy a drink? Yeah, very much. Not that. Hey, you've taken up the responsibility of taking sustainability forward in our group. How do you think we're faring right now? You know what? I think the progress we've made in the last two years to really embrace all of the aspects of sustainability across the group is fantastic. Mm. I get. You see, this is all fresh erode. Yeah. Exactly. Where it's just come around here. Just nibbles away at it and then poof. Falls down. Don't get too close. It's too windy. Wow. Is the water usually cleaner just 'cause it's windy? Oh, it's just mucked up. Yeah. Sand. That's cold, huh? 10 degrees maybe. Yeah. Yeah. 12 at the top. Actually it's not at its coldest yet. It's still cooling down. You know, it's maybe wasn't the very first thing that we were thinking about when we started hearing about sustainability from the customers, but now all our stakeholders are interested. We've really addressed that topic within the group. Ultimately, of course, bringing it into our vision statement for the first time to change that since 1995, I think that's a fantastic thing because it's allowed everybody to understand how important that is to Motherson. It would be easy for us to just describe this and say, "Yeah, we can do this, we can do that," and everything. To have third-party organizations like the United Nations Global Compact or the assessments that are done by these, you know, rating providers looking at us and saying, "Where are we?" You know, that's really important because it gives a foundation that people then believe in. Mm-hmm. That we can build on. It's the first time I think that even the, you know, the entire ecosystem, customer, suppliers, are all saying, "Hey, we understand that, you know, initially it may be a solution where we have to invest some money in. Yeah. Eventually we'll get the cost efficiencies down the line. Everybody's really willing to make that investment, including us. It doesn't need to be seen as something that's gonna take a long period of time for us to see the benefits from, to balance that financial performance with doing the right thing from the point of view of our vision. I think that's a learning experience. You know, talking about economic circularity, how we learn that actually being more sustainable in what we do is actually good for profitability, good for the bottom line, good for return on capital employed when you talk about making those investments. That's fascinating, Barry. What I'm seeing when I'm going to some of the plants is that also we're investing in new materials which are actually more recycled. Yeah. which will be dumped away, thrown away. We're actually bringing them back and giving them a second life and saying- Yeah. you know, the customers are actually appreciating it and the end customers who are buying these products are saying, "Hey, they want more of these things." It's becoming a lot more normal to have. Exactly. -you know, reuse stuff than stuff which is, you know- Exactly. I think that reuse, it can be applied the whole way through the business. You know, we talk about reusing materials. We talk about reuse of energy, reuse of water, you know, and how water is used in our facilities. Mm-hmm. You know, looking at how we can get to that carbon neutral ambition that we've set for ourselves across all of our operations by 2040 or earlier for some customers of course, are pushing us for earlier dates, and we can do that. You know, introducing sustainability into our DO33 initiative is seeing the opportunity for the operating units and people in the shop floor to come up with their ideas and suggestions, and push those things forward and get visibility of that right up to the top with yourself and your father. You know, I think that's fantastic. The momentum is now there, you know, for sure, and what we're able to communicate and talk to both within Motherson and externally to our customers, the investors, to all of our stakeholders, there's so much that we can do now. It's fantastic. Barry, where do you think I should go from here to look at some of these things that are happening in our group? Well, the great thing about that is I could give you a really, really long list now because there's so much happening. If I was to narrow this down, we talk about planet, you know, what matters for us in terms of the environmental sustainability, probably in the U.K. plant for SMR division. For sure, the lighting and electronics division, probably Pune in India would be a great location. They're really advanced with energy management and how they're dealing with that. On the people side, I think you should go and see one of our biggest plants in Tuscaloosa, U.S.A. You know, a lot of people there, and I think you'll hear some great things about the people side of sustainability. Probably go to one of our newest plants in Serbia for the wiring harness. It's a new environment where Motherson's really growing. Okay. again, some great things to see there. Well, you put a lot of places on my list. As long as it's not as windy as this place. I can't guarantee that. All right? I can't guarantee that. We need to harness this wind too, right? We're doing environment. It's environment, you know, it matters to us. On governance, you see, we talk about governance as being the foundation. It sets a platform upon which we do everything we're doing. I think for that you should go back to the origins that you know well of the Motherson Group, the wiring harness in India, in Noida. You know, that'd be a great place to go and think about governance. Well, I'm excited to get going, Barry. All right. It's great to see you, mate. All right. All right. Good seeing you, mate. Take care, bud. The best post loads in the world here in U.K. You wouldn't have thought so. What are you hearing from the customers? How important is sustainability to them? The customer sees sustainability as a key part of our business now. They are telling us that there is an important roadmap that they want us to be part of. The Eco line's up here, so this is where we're making what we call the Eco Mirror. The customer asks us a question. Innovation starts with a question mark, doesn't it? How do we make it smaller? What have we gotta do? We've gotta reduce drag. We wanna electrify our fleet. What we did is we invented. This is the product here. I won't touch it, just in well, don't let the boss see me. Well, you are the boss. I can do what I like. We reduced the size of the mirror by 30%. If we took a range impact of that mirror, it's about 25% better than a conventional mirror. Completely engineered and concepted but here at SMR UK. Right here. We're selling from here today to China. Volvo want to talk to us about another product on their big sellers. It's all very good. First to market. Amazing. First in the world. Very proud. That makes me proud standing here and seeing it happen. Thanks for saying that. Well done. Thank you. I'm thinking, what are we doing specifically at this plant for sustainability? Well, it really plays into what you've just been seeing with Steve and the actual Eco Mirror itself, and therefore, we decided that we should look at our processes too. One of the things we started to look at first of all was our energy. I'm really proud to tell everybody that we have now wind energy as our only source of energy for our plant. Lean, clean, green for us is something that a little bit of a buzzword that we use around. Mm-hmm. Lean for us now is making sure that we invest in the processes and the plant. We've insulated, we're removing drafts from the building, and we're making sure that when we buy, we buy smart. With clean, we'll talk about the next stage of evolution, which is the transport costs. How do we wanna power our vehicles? That'll be the next stage of what we do, all the way through to the end game for us, which is 2040, or even earlier if we can do so, on that roadmap for actual green. Oh, phenomenal. SMR UK leading the way to our sustainable future. Thank you. Great job. Thank you. Safety first. It's really amazing to see all the solar panels on top of our plant. Yeah, we started very early. You know, it's really- In the entire process. always surprises me that, you know, you were doing this even before the ESG drive became a phenomenon. Well, I have to be honest here. We didn't know the word sustainability when we started. We started way back in 2014, and we looked at it purely as how to make our products more competitive. We looked at it from a very commonsensical point of view that every waste that you re-reduce will help make your product more competitive. We looked at energy, we looked at reuse of materials, we looked at water conservation. It just so became that the word sustainability became such a big thing, and we were already on our way to kind of move in that direction. Tell me about the certification? There's a special certification also now. Yes. There is a certification called ISO 50001. ISO 50001 certificate. Recognition from the government that we are making progress in sustainability. What it does is basically it validates all the work you're doing towards energy conservation. That's a very important step. It's a motivating factor as well for people. Does everybody know about the sustainability drive, and are they all into it? Last year we won it from the Government of India as the most energy efficient unit in the entire country. Mm-hmm. With that pride, there's a lot of motivation. I think they are very, very convinced that this is the way to go. I hope we can share all of this with all our plants, not just in India, but globally as well, all the learnings. We are trying our best, and we are using the sustainability program that we're driving globally to try and push this out to the entire Indian region and maybe to the globe as well. The only thing left to do, Vishal, is finding solar panels that work in the rain. Always make sure one hand is holding. Thank you. Thank you. Really enjoyed myself, literally being on the top of the roof. That was fun. Well- My first time. Thank you so much, Vaaman, for the visit. Thank you for everything. Keep up the great work. Thank you so much. See you. Later. Bye Off to the next one. Hello, everyone. Come sit in the car. We'll take you to PKC Serbia. Why PKC Serbia? PKC Serbia, when I came here first time, 2017, were just 200 people. They got a lot of orders from the truck companies all over the world, and this company had to grow from 200 people to 4,000 people. We are going to talk to George, who is the HR manager, to find out how he did it, the challenges, and how he overcame those particular things. People are at the heart of Motherson. Whatever technology, whatever business that we are into, and the local people here, the job comes to them, and they then create some of the most amazing products that our customers love. Our customers here are Volvo Trucks and Mercedes, and they do a phenomenal job in satisfying them continuously every day. Welcome, Mr. Sheth. Thank you so much. Welcome to Serbia. Thank you so much for having me. Last year, we had, I think, the most diverse plant in the whole Motherson Group. Oh, okay. We have all the ages coming from 18 to 65. Wow. Yeah. We are also pleased that we have two-thirds of our employees are ladies. Oh, that's excellent. Excellent. This is very, very nice. With new people and new different cultures, there are different views, this is basically enriching our environment with the ways how we are looking at things. You get so many new solutions. Exactly. Everybody has a point of view, but it's also inclusive. At the moment, we are hiring around 40, disabled, people, providing them with a good job and opportunity to earn money for themselves and their families. The people are the backbone, and if we can take care of them and the society where they are, that's great contribution back to them. Oh, that's excellent. We have a team spirit, open communication. It was a pleasure to talk to you. Me too. Thank you. Me too, very, very, very much. I'm learning Serbian, so I've learned the first word. We are now in the training center. This is where it all starts. We are here to grow our people from operator to technician to junior engineer and so on. You capture the spirit of Motherson very beautifully. Oh, that's a complicated harness. 360 trucks per day. Per day? Wow. Wow. When people don't see growth, they are very worried what will happen to the company. Growth gives them hope. Hope gives them stability to make a life. You mentioned, yeah, the growth gives perspective and the future. This is the case, but it also brings at the moment, lot of challenges. It makes your life interesting. If the challenges stop. It's boring. It's boring. Hey, mister. This is from heart. Oh. Oh, thank you. Made for you. Thank you. It's made of scraps, but it's from our hearts. Goodbye. Thank you. It's sustainable. Yeah, that's right. Goodbye. Goodbye. Bye-bye. Heading back to what used to be home. Passing by those little towns I know so well. 'Cause everything knows a new end. We're in Alabama now, the largest polymer plant for Motherson Group, making big parts for our customers here in the U.S. Look at these beauties. These are the parts that we make over here. I mean, if you look at a car from the front, our products are the first thing that you see on the car. Pretty impressive. John and Rhonda, it's great to see you back at the plant. It's been a few years. Yes. I must say that it's completely changed, and the energy is just infectious. You guys have done a wonderful job here. To be honest with you, the miracles aren't in here. The miracles are out there. The team members, when we did start, we had tremendous issues. I remember one quick thing in my... I was only here two weeks, we needed to work over Thanksgiving weekend. I asked team members, I had six team members that were willing to work with me in my first two weeks, all four days hand-building bumpers for the customer. Hey, how are you? That showed me the power of our team members here at Motherson. I have 1,600 people here that I work for, support to help them be successful, be safe, have opportunities to grow. If they did not have the tool, was to get them the tool, and the team members respond and grow. Through that process, we've grown more team members internally than we brought in from the outside into leadership roles. Completely visible in the things that you've done here, John. That's amazing. Rona, I remember your first day here. The situation was in such a chaos, you know, you showed true grit and leadership. You know, it was really bad that first day I came in. We walked around together and talked to the employees, understand what the issues were with the employees and, try to build their trust again, try to get systems in place that worked. It was a lot of work. It wasn't something we did overnight, but we had a good group of employees. You know, really looking forward to the growth opportunities here, and you guys are doing an amazing job. I'm so proud of everything that you guys have done here. Well, thank you. You think of how powerful empowerment is. 1,600 team members come up with one idea each. How powerful is that? it allows me to make an excellent part for Mercedes-Benz. Actually, I love those people because they wanna be part of our future success and growth. There was no promotion opportunities here before. Mm-hmm. We put that open door policy in place so that we could talk to the employees, understand, who had what skill sets we needed. We put that promotion opportunity in place and started promoting everybody. I began Motherson in 2018. I was homeless at the time. This Motherson has granted me the opportunity of becoming a junior quality engineer, which is really successful for me, and I'll look forward to the opportunities in the future. Sure. Great. Awesome. Smile. We're a family at home, and we're also a family at work. They are family. I can't say that enough. Now I know where your nickname Papa John comes from in the facility. That's true. It doesn't matter where you come from. We just need hard work, dedication to it. You have a good flow going on at this job. To be honest, in the electric engine, sometimes I miss the sound of the engine. The honking makes up for it, though. Now we're off to a wire harness plant in Noida, India, to explore more about sustainability and governance in Motherson. We do our awareness campaign and training for all the employees to understand how important the code of conduct is. It's a very new policy which has been introduced like inclusion and diversity policy, anti-harassment policy. This diversity and inclusion policy is bringing a lot of balance in the organization. We are making sure that all employees are covering by these training programs, and yeah. Anurag, what are the solutions that we are developing together with our customers to be able to hit their sustainability targets? We are developing the high voltage electrical system. It's in all the segment. It's not restricted to only PV. It's passenger vehicle, commercial vehicle, two-wheeler, across all the industry. It is not we have to, it's we want to be. I'm so glad to see that India is not behind any of the other countries. Yes. That's a fantastic feeling that we are leading, together with our global companies, this drive in Motherson. Yeah. Now let's have a glass of water. Yes, sir. Thank you. We saw real sustainability at work at Motherson. You saw that we are transitioning ourselves to renewables. I was on practically the roof of our facility in Pune, seeing the solar panels at work, not just driving electricity from renewable sources, but also driving our teams, such as our engineering teams, to be more sustainable. That resulted in development of the Eco Mirror, which you saw in U.K. Actually, driving sustainability in the group is opening up more platforms for revenue growth as well. The Eco Mirror has been a huge success. The customers are wanting more of it for the new vehicle programs, and you will see a lot of that come in the future as well. The units now do believe that sustainability and better financial performance go hand in hand. As you saw, Vishal's unit was able to demonstrate that with the investments that he had made in sustainability and those solar panels. That's again, something that is being replicated in our group worldwide. Finally, it is about people, it is about equality, it is about giving people all the opportunity in the world, equal opportunity for all, and giving them an ability to drive their ambition to no limit. Finally, it has to be surrounded by governance, making sure that all these things that we are wanting to implement are happening with the highest code of conduct, and that's something that we are doing through our training programs and awareness for the people. To show you how strong sustainability really is and the importance it has in Motherson, for the first time, we've actually amended our vision since 1997 and added the word sustainable in our vision. It is now to be a globally preferred sustainable solution provider to show to all our employees, all our family members, and all our customers that everything that we are gonna do is going to be driven with that overhang of make sure that it is sustainable. We are serious about sustainability. We have also developed our own logo of sustainability, which encompasses three main areas that we're gonna focus on: the planet, the people, and having strong governance to make sure that everything that we are doing has a real impact, and we can continue to grow while making sure that we're sustainable while doing it. Just like our customers, we too have set an ambitious target to be carbon net zero for all our current operations by 2040. You will see a lot more progress on this as you read our annual reports, as we continue to disclose all our efforts in this direction. In summary, we are building Motherson for the long term. We want to be good global citizens while we are doing it. We want to help build a world which we are all happy to live in, and we can proudly pass it on to future generations even better than where we found it. Finally, I'm at the last chapter of our story here today, and I bring you back to where we started, our purpose. I'm gonna summarize everything that we do from this as well. Everything flows for us at Motherson from our purpose. Our ambition that I spoke to you about the start, how we create value for all our stakeholders, how we create sustainable jobs for all the people here at Motherson, finally, we become a something larger. What better way to show this to you by the final part of our movie? Here you will see how we really spread the philosophy of Motherson, keep it intact, even though we grow quite rapidly in these tough times. Please enjoy the last bit. Breakfast of champions. Here we are in Lisbon, Portugal. Just woken up in time for a meeting with Andreas, I'm gonna talk to him about something very important, the Motherson purpose. Wow. These waves are something. If only I was a surfer. Is that him? Andreas! Are you there? Come here. How did you get up there? Look at this. Whoo! We're talking about something very important. Why have you brought me here to talk about it? No. First of all, we're here because we have the HR conference in Portugal, and when I passed by, I saw that scenery and I thought, "What are we going to talk about?" You will talk about, well, Motherson is bigger than ourselves. This is exactly showing that there is something bigger. There is something bigger which we are creating for our own people, which we are creating for our stakeholders. Yeah, I just thought, "Wow, this is exactly what it is." It is more than us. There is more than me standing here. It resonates very well to that, to that. No, you're right. -thought. How are we really making sure that this purpose, this DNA, this culture that we talk about gets really imbibed in all the people that we are talking to? Because we're growing very fast. That's why we have started to create ambassadors to roll out that message and make sure that our HR people who are actually attracting. Mm. training talents. We're gonna grow very rapidly. The fear I have is that we don't lose this immaculate understanding of this DNA, and it gets lost somewhere. I think that's our job to protect it. I think that is where we start here in Portugal, to focus two days with the people and then convert it from there and grow it from there. Okay here, either. I think the waves are getting bigger and the people are waiting. Let's go do this. Can we go on the other side of the street, please? Yes. Otherwise, we are not reaching the conference. As you can see. Bye. Oh, my God. Been driving a bit. Oh, my God. It was very inspirational and very impressive. You inserted very well the messages to the HR community, which is very important to us. Thanks for that. You know, to go after such big goals, it's also important that they understand the purpose behind it. We just launched a program, an HR talent development initiative called Program Everest. We developed an HR methodology based on the Motherson DNA, which helps us to find the people on the labor market who are fitting to our core values. Great. Our army is ready for the next challenges. They are ready to climb the mountain. Fantastic. I'll see you safe. I'm off for my next. Art. The next art. Next art. When he says art, he's referring to acquisitions, because we believe at Motherson acquisitions is an art. Hey, buddy. Hey. How are you doing? I'm good. Comfortable driving here or... Yeah, I guess. It's like driving anywhere else. There's more chaos. There's a lot more chaos. You know, Sukhinay when I was, you know, been to all our plants... Right. -not all, a lot of them in so many different countries, people were asking me everywhere, you know, are our 2025 targets still intact? You know, how are we gonna get there? The only way I could really explain it to them was that, yes, you know, it's part of our purpose to keep growing. No, totally. I can't agree more. You know, the best of opportunities come when the times are not so good, as we've seen in the past as well. Yeah. We're seeing a lot more opportunities now than we have before. There's at least two or three a day. I guess you have to maintain a financial discipline, right? Yeah, 36 by itself, not a challenge, but I think, yeah, we always have to be pragmatic. I think stability is critical. We are building this for the long term. I think the first step here was to keep the ship stable in the volatile times that we were in. The customers, the investors that we are carrying is all feeling comfortable with what we are doing in a balanced way, which gives them long-term visibility of being here. You know, we hope they're part of our journey forever and we are able to take care of them. Mm. as we move ahead as well. I think that's what I really love about our company, is that we're looking after all the stakeholders, not just the investors, but also the communities, our people, and doing it in a sustainable and green manner. We're only doing what nature is telling us. If you think about, you know, revenue growth, in nature, you either grow or perish. Everything around is about growth. If you think about, you know, our three C extend, it adds diversity. In nature, again, we are looking at biodiversity. Again, if you think about roast targets, the fruits provide the seeds, and it kick-starts the life cycle again. That's what we do. We use the roast to replenish ourselves, reinvest, and keep growing. Hey, Bhavin, I know a great place for a coffee. You wanna stop by? Got great news as well. Oh, I'd love to. I've been driving for so long. Coffee would be great. It's the fun of the journey as well. It keeps us all together and focused, you know, looking at the future. Yeah. Bridging from here to the 36. That's right. Right place at the right time. Now we just need the right target. Bhavin, how was the journey? Papa, Route 36 was an incredible adventure. Sleeping in the car, lost roads, seeing camels. Everything was happening. On the brighter side, I think I saw such amazing things happening for our plans for Vision 2025. The customers asking us to do even more and building new platforms, and even in all the new verticals, I think we have strong momentum, and I think the customers are backing us to be able to grow fast. Actually, I'm surprised, pleasantly. They're responding very well and great achievements coming over there. Well, even for the roasts, I think the teams are doing a wonderful job. We are truly on our way to being a diversified company and can withstand anything in the future with our diversified portfolio. That's what should make all of us very proud. We are relevant, we are focused, and we can do well. We continue to make great progress on sustainability. Evolution has always been a very strong part of Motherson. In conclusion... I think, Papa, given the times that we are in, I think we have built an excellent foundation together with your guidance and our leadership. I think we are ready for Route 36. Excellent. It's not just for 2025. It's for 2025 and beyond. You hear that, guys? Yes, let's go! I hope that the movie showed you how precious our philosophy is. As we grow, we're gonna make every effort to preserve it. In fact, we are creating educational programs for all our people, so that not only do they understand what it is, but they also imbibe it. Our philosophy is at the center of every single thing that we do. Because of this philosophy, we've been able to create a business that is resilient, that is long-term, and that is sustainable. That, ladies and gentlemen, is how we're gonna get there to our targets of 2025. It's been a real honor to have you with us on this journey. Please do remember it's only halfway, because the foundation is set and the best is yet to come. Thank you very much. I apologize for the small glitches that we had, that just shows, you know, you can have the best of preparation, the best of equipment, the best of everything, yet the world will keep throwing curve balls at you. The most importantly, this show will continue, that we are geared up for no matter what comes, we will head towards the 2025 targets. Now I would request Papa and our senior management team to please come up on stage as we open up the Q&A session for all you answer your questions. On stage, we would request our Chairman, Mr. Vivek Chaand Sehgal, to join us. Along with us, the SAMIL CEO, Mr. Pankaj Mital, the MSWIL CEO and CFO, Mr. Anurag Gahlot and Mr. G.N. Gauba. Of course, back on stage, the SAMIL CFO, Kunal Malani. While we set up, just an FYI for everyone, after the Q&A, we will go straight into lunch and then a few more interesting things waiting for us. We're ready for any Q&A. If you have any questions, just raise your hand and we will find you and bring a mic to you. Hello sir. Thank you, thank you very much for the innovative and comprehensive presentation, especially like the part so far. Couple of questions, sir. Firstly, thanks so much for sharing that increase in content per vehicle, the potential from ICE to EV. If you can expand or elaborate on that, because there was this 8x increase happening in wiring harness when it came into two-wheelers and 2.4x for four-wheelers. Pankaj, sir, if you can elaborate what is leading to this increase in content? Also in the MSWIL, is this already started reflecting with our two-wheeler customers on the EV side, and how do you see this progressing forward? Yes, you're right that the content goes up when if there is a ICE car and a EV car, if we compare. You know, as we go forward, a lot of car makers are building platforms which are not ICE and EV together, but they will be just EV. The content goes up primarily because when there is a EV car, there are more features in the car. One is that which adds to the low voltage side also. In most of the cars, the low voltage side remains as it is, except for the engine. As engine goes off, the engine harness goes off, but nearly 75%, 80% of the low voltage harnesses will always remain in the vehicles forever. What goes as an addition are from the charging side to connecting all the motors, the high voltage stuff, which is made up of very heavy connections because it carries a lot of current, lot of amperage into those wires to charge up. When you go for fast charging, it's even more. That's what adds to the content, and that's how we see it going up in that ratio as we move forward. It's both in the past cars, as you mentioned, and also in the two-wheeler side as well. Even when we do business for buses or trucks also, the content goes up tremendously. question. Regarding the EV portion of our business at MSWIL, it's an area we are actively monitoring and developing. While currently a relatively small portion of our overall revenues, we anticipate significant growth in this segment in the coming years. I would just say that we are there with most of the customers. Definitely you'll see a lot of Motherson in all kinds of vehicles, including the EV vehicles as they come in India. As you rightly mentioned, that it's at a very nascent stage. The penetration of EV is step-by-step. On two-wheeler side, you will be seeing still some content coming in with the subsidies and the support coming from the government. On the fast car side, we are there. We are there with for the buses as well. We do see that we are there with the customers for their new platforms as they come. As they come and as the volumes come, you will definitely see us there. Thank you, sir. My second question was on the acquisition side, which you call the ARC. Couple of queries relating to that. Number one is, one of the objective for the restructuring was that company could focus on certain segments. Within that, wiring harness acquisitions which you are evaluating, how are you looking at getting into the passenger vehicle wiring harness in Europe or U.S.? Secondly, being a powertrain neutral entity, you know, like would you focus on remaining powertrain neutral? Or would you think of opportunities even on the say, ICE side, if recommended by customers? Okay, thanks for that question. I think, it's very important to realize that we have a very strong relationship with our joint venture partner, and that will continue. We're actually the oldest Indian-Japanese joint venture partnership there is. Even in the past with PKC, you have to understand that Sumitomo is still there on the Samil side. There is absolutely no issue whatsoever for us to grow in any wire harness segment. We do it through communication. We do it with complete transparency, and we have complete support of our partners in everything that we do. I think the second part was you talking about us getting into engine parts. Look, I think that's what we were talking about in the part of the presentation where I said, we really don't know what the future is really gonna hold. It'll depend on a lot of factors. If you look at the car numbers, there are still 1.5 billion cars on the road today, that will need products that go into the engine for servicing, for repair, for maintenance. I mean, we only make about 85 million cars a year. For the entire fleet of cars to be replaced, it's still gonna take 10, 15 odd years for that to really happen in the best case scenario. We see a lot of opportunities in there. Anywhere where we can see a 40% growth, the customer is again holding our hand, we see an opportunity to that, sure, we will definitely evaluate even those things, because we do believe in the world where there is still space for ICE engines. Of course, they will continue to become more efficient, less pollutant, as there is still more to happen over there. If there is a good opportunity for us to drive 40% growth and growth, we will definitely establish it on our merit. Open mind, and open heart for all possibilities that are really out there. Really, no issues to go into any segment or any product. Also, I think, Vaman, the customer is driving the acquisition. If the customer is saying, "Do it," we are nobody to say no. Of course, we will take the opportunity in the right spirit and make sure that it's sustainable. Thank you, sir. Thank you so much for the lovely presentation, I believe the movie can definitely be nominated for the Oscars. Just on the acquisition part, my question is slightly more medium to longer term, especially the newer businesses, which you're looking to grow. Are the thresholds a little more kind of more lenient, or can you be a little more aggressive on the newer businesses, the medical or the aeronautics part? You know, you look at everything at the same slate, especially because that's a newer verticals where you need to grow. Probably customers are there, but not as much as on the automotive side. Or the other way to look at it is when you're evaluating, are there more acquisitions which you're probably evaluating on some of the newer businesses versus the autos, where you're already deep-rooted, et cetera, right now? I think the financial premise of acquisitions remain exactly the same, right? We don't want to go after it if we're not able to see a line of sight to 40% ROC, right? Obviously in the set of evaluations, you did hear that, you know, we are inundated with the acquisition opportunities right now. You know, there are about two to three that come every day, and we really have a problem right now saying no rather than saying yes. So in that scheme of, let's say, the opportunity set that exists, it's also about capital allocation. So we would want to allocate capital rather wherever we can get the best returns. Hence that premise remains the same irrespective. At the same time, to achieve our 3CX10, we obviously have to keep in perspective what is it that we are acquiring? What is it that will lead to further level of diversity? There's also a target of 75/25, which is 75% of our business to be automotive, 25% to be non-automotive. These are parameters that are then considered in our evaluation as we are doing capital allocation. Sure. Just one added question, if I can ask, is life post-COVID, wherein, you know, there has been a lot of smaller guys who've kind of gone out of business, how do customers look at you, as in do they now find you a little more preferred partners? Do they kind of do a contracts which are slightly more longer term? Or probably it's just back, life back to usual and not so much has changed? Abhishek, our pipeline is completely full. I think you saw that we are a partner of choice because, see, the customers see longevity with us. We are not a financial partner that will come in, of course, buy it opportunistically, and then sell it. No, we will buy it. We will invest in it. We will grow it, grow together with our customers, and that's what they really want. One car platform lasts for five to seven years, so you at least need to give it that much time for it to really show its true colors and what you can put into it. The customers have seen. For example, with SMR, when we acquired it was Visiocorp, $500 million top line, is getting close to $2 billion now. That's happened through investment and growth for the customer together with the customer. They're very, very happy with that. They see the good job that we do there. SMP came along and so forth and so forth. All the acquisitions that Motherson will do will have the customer's blessing, will be directed either by the customer or be okayed by the customer for us to move forward. I showed you that in the, in the slide on the, you know, the decision matrix. First one is customer. If the customer is supporting us, standing behind us, no matter what it is, it could be a product that we have never done. We just acquired a company in Chennai that's doing frames for BharatBenz. We've never done that product before. If the customer is there supporting us, holding our hand, why not? That's how we really make a success and, you know, we are the preferred choice of the car makers because we go in with an open mind, we give them solutions, and we are a partner for the long term. Great. Thank you. Hi, this is Amin from JP Morgan. First of all, thank you for inviting us here and for the presentation. I think one of the things that I took from there, among the many other things, was the green, orange, and red classification that you put. Very interesting frame to look at your profitability. Since you've given us the frame, you know we'll also ask questions. The businesses in orange and red, like why are they there? Are they because they are mostly new acquisitions and obviously it'll take time? Or are there businesses which are, you know, in a tough geography or in a, you know, in a component which doesn't make margins inherently? Some color on that will actually help us, you know, evaluate how these things could move forward. Sure. I can start. The team can add on. Understand, Amin, that, you know, we always give you more information. We are careful about it because we know you're gonna ask more and more questions, still, I think it's important to be as transparent as we can. We acquire companies which are sick. At the same time, we're building greenfields. At the same time, we have companies in geographies where a macroeconomic event happens or a currency, you know, plays havoc. While we try to mitigate all those risks by being local, there's always some impact or the other that's happening. You know, there could be a customer impact, there could be whole bunch of things that happen. This is the live graph of all the units that are there. Some are greenfields, some are perhaps units that, you know, have had an impact. Maybe volumes have not taken off on that particular program. I mean, there could be variable reasons. There are some obviously red plants that move towards yellow and green. We have a plan for that. Some that could be surprise shocks that come from green back into yellow. The idea is that we keep constant focus on these plants and have kept their pulse live. We don't classify them as whether it is, you know, a greenfield or a new plant or. We have to solve that issue. Of course, greenfield we know if, as long as it's hitting its budget, it will move into the green. You saw a lot of those plants that have already moved into the green, yet there are 11 which are still there in yellow. It's a part of life. You know, you'll always have plants that are performing very well and some plants which for some reason or the other, you know, have certain small term issues. We fundamentally do not shut plants. It's very easy to close the plant and walk away and say, "Oh, we tried. It didn't work." No. We have a responsibility to the people. We have a responsibility to the customer. Whatever the defect is, we have to find a solution out of it, and that's an integral part of our DNA. Never give up. We will keep focusing. I am sure those 11 units that you saw will also push to yellow and green, and more challenges will come with some of those units drop back to yellow and red. It's a constant process, but our endeavor is to keep pushing them into the green side and those ones that are green, push them even higher into the green, and that's how we really deliver a 40% rose. We call that purple. Purple heart, purple color. The companies which are beyond 40% rose, units, which are beyond that, we are introducing the fourth color, which is called purple. You'll start to see that in the next presentations in two years, three years from now. Thank you. Hello. Hi. Hi. This is Hitesh from CDSA. My question is on EV versus IC asset turns. You know, you have shown that we have seen the complexity of the product in EV, especially, you know, like wiring harness and all we have seen. Just wanted to get a sense on the asset turns, how does the asset turns, you know, CapEx intensity or R&D are required in EV? How does that vary between EV part versus IC wiring harness, if we can take an example? See, it depends on a variety of reasons and projects, when you talk of asset turns, because in the very initial stage, when the volumes are very, very low, and, if we have to make a specific investment in a specific location just for one customer. The asset turn may look, to be, you know, lower than a regular one, but, I mean, it's not, so asset heavy. There are some specific processes which need to be built in, and, you have seen that what we have done on the low voltage side also. Lot of work is done by us internally. Our engineering is very capable, and they always continuously is working on what is needed by the company in the next two, three years to find better cost structures of doing things by ourselves or working together with partners to find better solutions. I personally feel that as the volumes are normalized and normal volumes will be there, it should be very good. My question is more on the similar volumes. Yeah. Not initially. Yeah, on a similar volume. Maybe the EV asset turns will be higher than IC? We do not have very high asset turns especially on the wiring harness side, and we do not see very high asset turns for high voltage as well. Thank you. Hello. This is Jay Kale from Elara Capital. Thanks for the presentation, as well as the product display earlier as well. My first question, you know, you know, Motherson's key strength historically has been, you know, your backward integration capabilities as well as increasing cross-selling your products to different products to different customers. If you could just give a, you know, broad direction of how your value of Motherson components in a particular vehicle has moved over the last three, four years. Going forward, what kind of scope further is there for cross-selling? You know, in a couple of years back, you'd mentioned that it's around 2%-3% of the cost of the vehicle are Motherson products. How do you see that going forward in the next five to seven years? How has that moved in the last five years? Just to get a direction of the opportunity of content increase. Look, I think there's definitely a drive in Motherson. We can go back and calculate all those things, but actually it's quite decentralized. We give all the authority and the autonomy for the operating units to decide from themselves how much backward integration that they want to do. For example, in some places we have done backward integration for the mirrors in producing our own glass factory. In some other certain areas, we say, "Hey, it's more cost effective to source it from a different supplier." That varies. I think each company and unit has its targets of how much more backward integration they want to do, what is the investments that that will require, and that all comes in the budgeting process. We do take your feedback. We will look at it from a consolidated level. Perhaps try to give you some more information on that in the future. Definitely it's Motherson's drive to be able to, you know, strengthen our supply chain as much as possible. That's how the polymer division is really growing, because all of the small plastic parts are done by MATE, you know? That helps to feed in for SMP, which is, you know, able to do the larger plastic parts and use the strength of our sister companies. That's happening. Even the tooling, we have our own tool rooms. We have eight tool rooms which are really state-of-the-art. Instead of buying a lot of tools from outside, we're enduring to bring a lot of those tool purchases in-house and setting up new tool room facilities as well. It is a constant effort. It is something that we have made progress on and we continue to make progress, and we take your feedback to give you more detailed numbers in the future. I think we all know last two and a half years have been really lost years, no? If you really go for five years, you won't really get the impact. I think wait for another two and a half years, you'll understand what I'm talking about. No matter what, you know, 2019 December, when COVID hit, our plants in China, we actually exported masks from Dubai to China. By three months, four months, China was exporting masks to the world, wasn't it? A lot of changes happened in the last two and a half years, still, it is important for you to understand, we're a not yet company. Not yet company means are we doing it now? No. Tomorrow, for sure. You are willing to pay for it, we will do it for you. No issues. In Motherson, we don't say no at all. I think last five years, how the content has gone, this thing has gone, you will all have an anomaly. It may not give you the kind of figures that you're looking for. All the other past five years, we can do the numbers out there in the annual reports. As Vaman said, he'll do it for you. Sure. Thank you. Just one more question. One of your slides you did mention on the EV versus ICE. You also mentioned about bumpers, instrument panels, et cetera, content moving 3x even higher than mirrors, which was around 1.4x. If you can just throw a little light on what exactly is changing so much in bumpers and door panels, et cetera, that there's such a big increase. I'll ask Char to answer that question. All right, good. Thank you, Vaman. Look, if we are talking about specifically bumpers, while you do not see direct impact on bumper versus EV versus ICE, but what we do see is that the fascias are evolving and changing to accommodate this new technology, the EV vehicles. With that, the technology and value additions increases. On top of it, you also are going to see more value and content and more features mounted in those bumpers. Where in the past you would be able to install sensors, radars, cameras, et cetera, directly in the bumper, now you are going to be talking about putting this technology behind the fascia, that it will require different more advanced materials that are going to allow the radiation to go through to detect the objects. All of that is going to create value addition and more money for our company. On interiors, again, we are very agnostic to that. Nevertheless, as the EVs are growing, you are going to also see penetration going towards autonomous driving. That is going to very much change experience of how you are going to drive and sit in the car. With the interiors will have to catch up with that. Thank you. Right. Thank you. Look, if I might just add, you know, just to bring it into perspective, while this is all about the content growth that we spoke about, not all of it is necessarily something we'll be making. By being the integrator as well, we do get access to a lot of this, and enables us to figure out the right time when we want to do vertical integration around those. Those are all additional opportunities that will keep coming up as more and more content get featured into our, into our product lines. If anyone has any more questions, please raise your hands now. As the mic comes to you, just a reminder, please do introduce yourself. There are a couple lights here that make it hard to see. Yeah, hi. This is Pramod from Incred. This is with regard to the order book increasing towards the EVs for international business. Can you just walk us through the experience in the sense how your partners, either in terms of Sumitomo or PKC, helped you to acquire this? One. Second, as the content is increasing drastically for wiring harness, will the R&D responsibility come over to you guys? Will it be an exciting opportunity in the next five, 10 years as the content is going up for wiring harness? Any thoughts on the same? I'll answer the order book question first, then I'll pass it to Pankaj Mital Sir for the wire harness. On the order book, we're showing you the new orders which are not executed yet. These orders will become zero in the next two years. This is our definition of order book that we have. That's how much it will start. It may be $100 million out of that, maybe $1 billion. All depends on, again, what the uptake of the customers is. What we're trying to show you is that the customer is awarding us with the new programs, even for electric vehicles, because we have the capability to further develop our components with the relevant technologies that they want to see on the electric vehicles. These are, again, bumpers, mirrors, dashboards, door trims, all SMRP BV parts that you are seeing in our order book, which again, with newer technologies, if you go to the experience zone, you go to the trend zone, you will see a lot of these new features which are coming up in these cars, and that much more prominent in the EV. Again, goes to see how much of these will be sold as compared to the ICE. For us, we are supporting both sides, but the whole idea of that is that, look, our parts are still relevant, growing in content, and extremely strong on the order book as the customer is shifting towards EV. My caveat, let's see how these, how these offerings really play out in the market. You had a question on wire harness, as to, how the partners are helping us, I suppose. Partners and with your responsibility as a in-house R&D. Because as the content is rising, right? You can add a lot of value to the customer. Will it be going to change as you progress more into EVs over the next 10 years? See, what happens is that definitely all partners are working together. PKC is not a partner, it's our own company, we are just one family. All the members, all the engineering folks work together, it's one team. What we learned from PKC in the very initial time was, since it was doing a rolling stock business, which meant doing high voltage harnesses for electric engines, the technology was evolving from there, how to join, how to combine. That has been running for years. That was a very stable know-how of putting the wires and the components together. That was translated into buses, into trucks. What we have done together is done for pass cars, for two-wheelers, all the segments. This has been done by us. Of course, all the partners, including Sumitomo, wherever there are needs for the Japanese car makers or, we are always working together and getting all the know-how. As far as the R&D is concerned, definitely over a period of last, two decades, we have our own product design capability. We are designing the products. We are working as test engineers at the customer sites. We design wiring harnesses, we design components, we are designing and developing junction boxes. We have our own tool room. We do all this stuff together. Wherever the design is done by us, we are developing our own product. Total responsibility definitely is ours. Together with the customer where there is a co-development- Where there is a build-to-print product, there are responsibility in terms of manufacturability of the product, that our product is manufactured as per the specs. That's how we work and, continue to work in that sense. Wonderful presentation, thank you for the opportunity. My name is Manish Ostwal from Nirmal Bang Securities. My question on the our known automotive business, which we are indicating 25% will be the share from that business by 2024-2025. The first question is: What is the total incremental CapEx in that business will be required to achieve that target? Number one. Number two, in terms of customer addition and the sales force to build that business, what are the initiatives? Can you talk about bit detail on that will be great. Okay, thank you for that. Look, we are going to be opportunistic for what are the opportunities that present ourselves for the new verticals. I think the great example is what we've done with CIM Tools. That was the aerospace company. We acquired it, and now it's become a partner with Motherson and together with the customer. The new orders that they've given us, we have configured the relevant investments as we make them for the new facilities have to drive towards 40% growth as well. Everything remains the same. Any investment criteria that we take, will depend on the business, will depend on the opportunity, and has to show a direction towards 40%. Obviously, that's not gonna happen overnight. We're going to have to make the investments. We've invested in a new plant in Chennai. As those volume picks up, again we have to give it at least a five-year period, we believe that this will trend closer to those 40% marks. You will see the total CapEx that we will spend as we announce it every single year. We gave you a guidance for last year. As these divisions are developing, all the CapEx is within that limit. We will continue to give you guidance next year as well, what we envisage the opportunities are. Obviously, acquisitions will supplement that on top. Any financial decision that we do take in investment has to hit our financial criteria. Even if we take a strategic one, it has to end towards that 40% in a particular time zone. Obviously, for the different industries, we will have to take some, you know, some tinkering with that depending on the strategic opportunity, but largely that holds strong. On the logistics on the interior side, that's the same. We're looking at building our own competencies in-house, putting investments in. That will drive better efficiencies, better profitability for our group. More consolidation should result in better profitabilities, and again, that 40% mark should be hit in a period of time. There is no change for the new verticals in terms of what we want, in terms of growth for all the investments that we do make. Also, Vaman, please don't forget, this is not a this five-year plan, this. The seeding was done the last five-year plan. It draws tremendous amount of power from existing. For example, CIM Tools, Motherson, they do a lot of machining. We are already making tools ourselves, so there's a lot of synergy that you may not be able to just see directly. All the seeding that we've done, these particular four projects that have come for new this thing and all that, they. You will see that they originated, the power really comes from Motherson existing plants. The CapEx and all that are, I think, quite reduced. It's not so, such a big thing. Unless a big thing is happening in that company, which we love, why not? We will do it. Thank you, sir. Thank you, sir, and all the best to Team Motherson to achieve Growth 36. Thank you. Hi, sir. This is Kaushal Maroo from DSP Mutual Fund. In over the last two, three decades, the business world has changed a lot. We have been getting into new geographies, into new business verticals. Have you ever considered that if we, you know, dilute the benchmark from 40% to 30%, it'll be easier for us to grow the way we want to grow? why do you want to? We want 40%. We are shareholders. We need our money, yeah. if you 30% is a good enough benchmark, just have you considered that? I know. I know. How do you think about it? Motherson is known for big, hairy, ambitious targets, so why not? I had to keep telling them FPR. FPR means 40% growth. I said, "The day you achieve 40%, I'll change the F again. I'll call it 50% growth." I think we have to be aggressive, and it changes the mindset of the team unbelievably. You cannot imagine. I still remember some of my friends here when we were taking over SMR, Visiocorp at that time. They said, "In India, how much of the business is in India?" We said, "2%." They said, "It's impossible for you to make a 40% growth." They asked us to dilute to 20% and then grow from there. We said, "No." In two years, three years, the hero is sitting here, Mr. Char, who was at that time looking at the SMR thing. They moved. They came to 38%. 98% of the business is outside. With the concept which Nimitbhai taught us at that time, it took us 6 months to understand 40% growth, how to calculate it. We liked that particular idea so much and appreciated his teaching to us that we today give it as a minimum benchmark. First is 40% FPR. Whatever target, okay, FPR 40%. FPR means 40% growth. Or 40%, but yeah, 50%. Or 50 people 60. We don't say sixty, we say sixty. Thank you, sir. Thank you. If anyone else has any questions, please raise your hand. I do want to remind everyone that you will get an opportunity to discuss a lot of things with a lot of senior management, even for the rest of the day. Any question that you would want answered right now? Good. I think we have the opportunity for lunch. Lunch. They must be really hungry. We either heard a question or somebody's tummy growling, so we will think it's the latter, and then we will go. Good to go? No questions? Good, everybody. Thank you again for all these great questions and all these great answers. Thank you again for all your time, and thank you for these great questions. Before we can jump into lunch, and I know some of you are looking forward to it, we would like to give a quick brief on what to expect next. As you might have heard a few times already, we do have these things called the trend zones, that's gonna be on your right. Everybody over here will have a trend zone map attached to your lanyard. You can see that on your right over there. You will see that you're assigned a zone to start in. Everybody's taking a look at their maps. They're seeing where they're gonna start. Please do start gathering in front of your assigned start zone by, let's say, 3:20 P.M. By 3:30 P.M., we will have our, who we're calling our group leaders, who are gonna be starting a guided tour of sorts. Let me give you a little bit more context here. These trend zones are breakout rooms focused on some of the key trends we are seeing here in Motherson. You will know who your trend zone leader is because they'll be wearing this red hat. Not everybody was easily convinced to wear this red hat, but they've all been convinced now, so you will know who to go towards. Here you will get an opportunity to talk to these key leaders in Motherson. Just an FYI, everybody, the trend zone leaders are gonna be senior Motherson, you know, family members as well. If you have any questions about the trends that you're looking at or about Motherson in general, anything that you've heard so far, those are the guys, right people to ask. Thank you again for your patience. We would like to now invite you all for lunch on the first floor of our corporate tower. As you can see here on the map, it's in the same direction as the experience center. We'll take an exit to your right, and we can go right over there. Again, everyone, 3:20 P.M. is when we are hoping to see you in the trend zones. 3:30 P.M. is when we'll start. If you have any questions, there'll be folks roaming around with these orange lanyards. Please do ask us for anything.