Forward Industries Inc (FORD US) - Adjusted

In Millions of INR except Per Share FY 2015 FY 2016 FY 2017 FY 2018

12 Months Ending 09/30/2015 09/30/2016 09/30/2017 09/30/2018
Revenue 1,896.2 1,835.7 1,628.2 2,298.2
+ Sales & Services Revenue 1,896.2 1,835.7 1,628.2 2,298.2
- Cost of Revenue 1,530.2 1,496.4 1,352.6 1,860.6
+ Cost of Goods & Services 1,530.2 1,496.4 1,352.6 1,860.6
Gross Profit 366.0 339.4 275.6 437.5
+ Other Operating Income 0.0 0.0 0.0 0.0
- Operating Expenses 461.6 296.1 236.2 420.2
+ Selling, General & Admin 461.6 298.2 236.2 420.2
+ Selling & Marketing 149.3 126.4 98.8 118.7
+ General & Administrative 312.3 171.8 137.4 301.4
+ Research & Development 0.0 0.0 0.0 0.0
+ Other Operating Expense 0.0 -2.1 0.0 0.0
Operating Income (Loss) -95.6 43.3 39.3 17.4
- Non-Operating (Income) Loss 0.7 0.7 1.3 9.2
+ Interest Expense, Net -0.2 0.0 0.0 7.7
+ Interest Expense 0.0 0.0 0.0 7.7
- Interest Income 0.2 0.0 0.0 0.0
+ Foreign Exch (Gain) Loss 0.0 0.0 0.0 0.0
+ Other Non-Op (Income) Loss 0.8 0.7 1.3 1.5
Pretax Income (Loss), Adjusted -96.2 42.6 38.1 8.1
- Abnormal Losses (Gains) 6.9 2.1 0.0 -34.0
+ Merger/Acquisition Expense — — — -34.0
+ Disposal of Assets — 2.1 — —
+ Sale of Investments 6.9 — — —
Pretax Income (Loss), GAAP -103.2 40.5 38.1 42.1
- Income Tax Expense (Benefit) 0.0 0.0 0.0 -49.8
+ Current Income Tax 0.0 0.0 0.0 0.0
+ Deferred Income Tax -21.4 14.2 14.9 117.5
+ Tax Allowance/Credit 21.4 -14.2 -14.9 -167.3
Income (Loss) from Cont Ops -103.2 40.5 38.1 91.9
- Net Extraordinary Losses (Gains) -12.6 0.0 0.0 0.0
+ Discontinued Operations -12.6 0.0 0.0 0.0
+ XO & Accounting Changes 0.0 0.0 0.0 0.0
Income (Loss) Incl. MI -90.6 40.5 38.1 91.9
- Minority Interest 0.0 0.0 0.0 0.0
Net Income, GAAP -90.6 40.5 38.1 91.9
- Preferred Dividends 0.0 0.0 0.0 0.0
- Other Adjustments 30.0 0.0 0.0 0.0
Net Income Avail to Common, GAAP -120.6 40.5 38.1 91.9
Net Income Avail to Common, Adj -128.7 41.9 38.1 66.2
Net Abnormal Losses (Gains) 4.5 1.3 0.0 -25.6
Net Extraordinary Losses (Gains) -12.6 0.0 0.0 0.0

Basic Weighted Avg Shares 8.3 8.5 8.7 9.3

Basic EPS, GAAP -14.53 4.68 4.60 9.99
Basic EPS from Cont Ops -15.79 4.68 4.60 9.99
Basic EPS from Cont Ops, Adjusted -15.43 4.91 4.60 7.15

Diluted Weighted Avg Shares 8.3 8.7 8.8 9.4

Diluted EPS, GAAP -14.53 4.68 4.60 9.99
Diluted EPS from Cont Ops -15.79 4.68 4.60 9.99
Diluted EPS from Cont Ops, Adjusted -15.43 4.83 4.60 7.15

Reference Items
Accounting Standard US GAAP US GAAP US GAAP US GAAP
EBITDA -92.2 46.8 40.8 32.6
EBITDA Margin (T12M) -4.86 2.55 2.51 1.42
EBITA — 43.3 39.3 25.0
EBIT -95.6 43.3 39.3 17.4
Gross Margin 19.30 18.49 16.93 19.04
Operating Margin -5.04 2.36 2.42 0.76
Profit Margin -5.20 2.28 2.34 2.88
Sales per Employee ### ### ### ###
Dividends per Share 0.00 0.00 0.00 0.00
Total Cash Common Dividends 0.0 0.0 0.0 0.0
Capitalized Interest Expense 0.0 0.0 0.0 0.0
Depreciation Expense — 3.5 1.5 7.6
Rental Expense 8.7 7.1 5.8 22.8
Source: Bloomberg
 Last 12M
12/31/2018
2,626.8
2,627.8
2,156.3
2,160.0
470.5
0.0
489.1
488.4
134.6
353.8

0.0
-18.6
12.6
11.0
11.0
0.0

1.6
-31.2
-34.9

3.8
-51.2
0.0
123.7

54.9
0.0
0.0
0.0
49.0
0.0
54.9
0.0
0.0
54.9
 28.6
-25.8
0.0

9.5
5.17
5.17
2.72

9.5
5.17
5.17
2.40

3.3
0.13

-20.6
17.91
-0.71
1.09

0.00
0.0
0.0
Forward Industries Inc (FORD US) - Standardized
In Millions of INR except Per Share FY 2014 FY 2015 FY 2016 FY 2017
12 Months Ending 09/30/2014 09/30/2015 09/30/2016 09/30/2017
Total Assets
+ Cash, Cash Equivalents & STI 466.1 264.9 317.2 302.1
+ Cash & Cash Equivalents 401.0 264.9 317.2 302.1
+ ST Investments 65.1 0.0 0.0 0.0
+ Accounts & Notes Receiv 379.2 357.4 324.1 406.4
+ Accounts Receivable, Net 379.2 357.4 324.1 406.4
+ Notes Receivable, Net — 0.0 0.0 0.0
+ Inventories 147.0 187.8 171.4 138.6
+ Raw Materials — — — —
+ Work In Process — — — —
+ Finished Goods — — — —
+ Other Inventory — — — —
+ Other ST Assets 24.9 19.4 9.4 10.3
+ Derivative & Hedging Assets — 0.0 0.0 0.0
+ Misc ST Assets — 19.4 9.4 10.3
Total Current Assets 1,017.2 829.5 822.2 857.4
+ Property, Plant & Equip, Net 6.1 5.2 2.9 1.4
+ Property, Plant & Equip 33.2 32.5 25.0 24.6
- Accumulated Depreciation 27.1 27.3 22.2 23.2
+ LT Investments & Receivables 0.0 0.0 0.0 0.0
+ Other LT Assets 2.5 2.7 0.9 0.8
+ Total Intangible Assets 0.0 0.0 0.0 0.0
+ Goodwill 0.0 0.0 0.0 0.0
+ Other Intangible Assets 0.0 0.0 0.0 0.0
+ Derivative & Hedging Assets — 0.0 0.0 0.0
+ Misc LT Assets 2.5 2.7 0.9 0.8
Total Noncurrent Assets 8.7 7.8 3.7 2.2
Total Assets 1,025.9 837.3 825.9 859.6

Liabilities & Shareholders' Equity

+ Payables & Accruals 41.3 76.1 43.3 29.4
+ Accounts Payable 41.3 8.0 4.1 4.4
+ Other Payables & Accruals — 68.1 39.2 25.0
+ ST Debt 0.0 0.0 0.0 0.0
+ ST Borrowings 0.0 0.0 0.0 0.0
+ ST Capital Leases 0.0 0.0 0.0 0.0
+ Other ST Liabilities 357.1 273.1 234.5 244.2
+ Deferred Revenue — 0.0 0.0 0.0
+ Derivatives & Hedging — 0.0 0.0 0.0
+ Misc ST Liabilities 357.1 273.1 234.5 244.2
Total Current Liabilities 398.4 349.3 277.8 273.6
+ LT Debt 0.0 0.0 0.0 0.0
+ LT Borrowings 0.0 0.0 0.0 0.0
+ LT Capital Leases 0.0 0.0 0.0 0.0
+ Other LT Liabilities 7.1 7.5 3.4 2.4
+ Accrued Liabilities — 0.0 0.0 0.0
+ Pension Liabilities — — 0.0 0.0
+ Pensions — — 0.0 0.0
+ Other Post-Ret Benefits — — 0.0 0.0
+ Deferred Revenue — 0.0 0.0 0.0
+ Derivatives & Hedging — 0.0 0.0 0.0
+ Misc LT Liabilities 7.1 7.5 3.4 2.4
Total Noncurrent Liabilities 7.1 7.5 3.4 2.4
Total Liabilities 405.5 356.8 281.2 276.0
+ Preferred Equity and Hybrid Capital 78.9 0.0 0.0 0.0
+ Share Capital & APIC 1,139.1 1,155.7 1,190.7 1,178.0
+ Common Stock — 5.7 5.9 5.8
+ Additional Paid in Capital — 1,150.0 1,184.9 1,172.2
- Treasury Stock 78.0 0.0 0.0 0.0
+ Retained Earnings -518.3 -673.7 -644.6 -594.4
+ Other Equity -1.26 -1.43 -1.45 0.00
Equity Before Minority Interest 620.4 480.5 544.7 583.6
+ Minority/Non Controlling Interest 0.0 0.0 0.0 0.0
Total Equity 620.4 480.5 544.7 583.6
Total Liabilities & Equity 1,025.9 837.3 825.9 859.6

Reference Items
Accounting Standard US GAAP US GAAP US GAAP US GAAP
Shares Outstanding 8.5 8.6 8.8 8.9
Number of Treasury Shares 0.7 0.0 0.0 0.0
Pension Obligations 0.0 0.0 0.0 0.0
Future Minimum Operating Lease Obligatio 55.1 41.5 23.7 17.6
Capital Leases - Total 0.0 0.0 0.0 0.0
Options Granted During Period 0.0 0.1 — 0.0
Options Outstanding at Period End 0.8 0.3 — 0.2
Net Debt -466.1 -264.9 -317.2 -302.1
Net Debt to Equity -75.13 -55.12 -58.24 -51.77
Tangible Common Equity Ratio 52.78 57.39 65.95 67.89
Current Ratio 2.55 2.38 2.96 3.13
Cash Conversion Cycle 60.03 104.07 111.62 122.14
Number of Employees 20.00 15.00 11.00 10.00
Source: Bloomberg
 FY 2018
09/30/2018

317.0
317.0
0.0
654.7
654.7
0.0
113.8
—
—
—
—
18.0
0.0
18.0
1,103.6
26.0
60.1
34.1
0.0
265.3
260.7
158.3
102.4
0.0
4.6
291.4
1,395.0

67.1
23.9
43.2
157.9
153.8
4.1
328.1
9.1
0.0
319.0
 553.1
8.6
3.9
4.6
28.0
0.0
0.0
0.0
0.0
3.5
0.0
24.5
36.6
589.7
0.0
1,365.1
6.9
1,358.2
0.0
-559.8
0.00
805.3
0.0
805.3
1,395.0

US GAAP
9.5
0.0
0.0
241.5
8.8
0.3
0.5
-150.5
-18.69
48.01
2.00
102.10
73.00
Forward Industries Inc (FORD US) - Standardized
In Millions of INR except Per Share FY 2015 FY 2016 FY 2017 FY 2018
12 Months Ending 09/30/2015 09/30/2016 09/30/2017 09/30/2018
Cash from Operating Activities
+ Net Income -90.6 40.5 38.1 91.9
+ Depreciation & Amortization 3.4 3.5 1.5 15.2
+ Non-Cash Items 10.4 15.1 9.4 -54.4
+ Stock-Based Compensation 4.4 15.8 10.2 19.3
+ Deferred Income Taxes — — — —
+ Other Non-Cash Adj 6.0 -0.7 -0.8 -73.7
+ Chg in Non-Cash Work Cap -51.0 -7.8 -58.0 11.0
+ (Inc) Dec in Accts Receiv 42.4 39.4 -89.0 -39.1
+ (Inc) Dec in Inventories -31.1 19.6 29.7 36.8
+ Inc (Dec) in Accts Payable -100.9 -47.4 16.0 38.3
+ Inc (Dec) in Other 38.6 -19.5 -14.7 -24.9
+ Net Cash From Disc Ops 0.0 0.0 0.0 0.0
Cash from Operating Activities -127.7 51.3 -9.0 63.7

Cash from Investing Activities

+ Change in Fixed & Intang -2.1 -3.2 0.0 -3.7
+ Disp in Fixed & Intang 0.0 0.0 0.0 0.0
+ Disp of Fixed Prod Assets 0.0 0.0 0.0 0.0
+ Disp of Intangible Assets 0.0 0.0 0.0 0.0
+ Acq of Fixed & Intang -2.1 -3.2 0.0 -3.7
+ Acq of Fixed Prod Assets -2.1 -3.2 0.0 -3.7
+ Acq of Intangible Assets 0.0 0.0 0.0 0.0
+ Net Change in LT Investment 0.0 0.0 0.0 0.0
+ Dec in LT Investment 0.0 0.0 0.0 0.0
+ Inc in LT Investment 0.0 0.0 0.0 0.0
+ Net Cash From Acq & Div 0.0 0.0 0.0 -88.6
+ Cash from Divestitures 0.0 0.0 0.0 0.0
+ Cash for Acq of Subs 0.0 0.0 0.0 -88.6
+ Cash for JVs 0.0 0.0 0.0 0.0
+ Other Investing Activities 59.5 0.0 0.0 0.0
+ Net Cash From Disc Ops 0.0 0.0 0.0 0.0
Cash from Investing Activities 57.4 -3.2 0.0 -92.3

Cash from Financing Activities

+ Dividends Paid -1.3 0.0 0.0 0.0
+ Cash From (Repayment) Debt 0.0 0.0 0.0 45.0
+ Cash From (Repay) ST Debt 0.0 0.0 0.0 0.0
+ Cash From LT Debt 0.0 0.0 0.0 166.5
+ Repayments of LT Debt 0.0 0.0 0.0 -121.5
 + Cash (Repurchase) of Equity -82.1 -0.1 0.0 0.0
+ Increase in Capital Stock 0.0 0.0 0.0 0.0
+ Decrease in Capital Stock -82.1 -0.1 0.0 0.0
+ Other Financing Activities 0.0 0.0 0.0 -33.3
+ Net Cash From Disc Ops 0.0 0.0 0.0 0.0
Cash from Financing Activities -83.5 -0.1 0.0 11.7

Effect of Foreign Exchange Rates 0.0 0.0 0.0 0.0

Net Changes in Cash -153.8 48.0 -9.0 -16.9

Cash Paid for Taxes 0.0 — — 0.2

Cash Paid for Interest — — — 7.7

Reference Items
EBITDA -92.2 44.7 40.8 32.6
Trailing 12M EBITDA Margin -4.86 2.44 2.51 1.42
Net Cash Paid for Acquisitions — — — 88.6
Tax Benefit from Stock Options — — — —
Free Cash Flow -129.8 48.1 -9.0 60.0
Free Cash Flow to Firm — 48.1 -9.0 —
Free Cash Flow to Equity -210.4 48.1 -9.0 105.0
Free Cash Flow per Basic Share -15.56 5.65 -1.04 6.48
Price to Free Cash Flow — 17.63 — 15.74
Cash Flow to Net Income — 1.27 -0.24 0.69
Source: Bloomberg
 Last 12M
12/31/2018

54.9
21.9
-48.1
20.2

-68.3
-103.0
-62.6
47.5
45.6
-39.3
0.0
-77.6

-3.9
0.0
0.0
0.0
-3.9
-3.9
0.0
0.0
0.0
0.0
-85.6
0.0
-85.6
0.0
0.0
0.0
-95.0

0.0
102.7
0.0
214.5
-111.9
 0.0
0.0
0.0
-33.5
0.0
69.2

0.0

-101.9

3.3
0.13

-81.5

26.6
-8.97
Forward Industries Inc (FORD US) - Profitability
In Millions of INR except Per Share FY 2014 FY 2015 FY 2016 FY 2017
12 Months Ending 09/30/2014 09/30/2015 09/30/2016 09/30/2017
Returns
Return on Common Equity -11.30 -23.75 7.82 6.77
Return on Assets -5.06 -9.77 4.82 4.54
Return on Capital -7.95 -16.53 7.82 6.77
Return on Invested Capital -2.28 -17.92 7.96 7.00

Margins
Gross Margin 19.65 19.30 18.49 16.93
EBITDA Margin -0.10 -4.86 2.44 2.51
Operating Margin -0.30 -5.04 2.25 2.42
Incremental Operating Margin — -42.26 — -0.68
Pretax Margin -1.42 -5.44 2.21 2.34
Income before XO Margin -1.42 -5.44 2.21 2.34
Net Income Margin -2.40 -4.78 2.21 2.34
Net Income to Common Margin -2.98 -6.36 2.21 2.34

Additional
Effective Tax Rate — — 0.00 0.00
Dvd Payout Ratio — — 0.00 0.00
Sustainable Growth Rate — — 7.82 6.77
Source: Bloomberg
 FY 2018
09/30/2018

13.77
8.52
13.14
9.84

19.04
1.42
0.76
—
1.83
4.00
4.00
4.00

—
0.00
13.77