Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — BofA Global EV / EV Battery Conference 2022
32 slides from Sona Blw Precision Forgings's conference presentation, May 17, 2022
Slide 1: BofA Global EV / EV Battery Conference
BofA Global EV / EV Battery Conference 17 May 2022
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: EV supply chain to be vastly different from ICE supply chain
With the requirement of new components, EV supply chain to be vastly different from ICE supply chain Share of FY20 Revenues for the Indian Auto Component Industry Body/Chassis 17% Suspension & Braking Parts 14% Drive Transmission & Steering 13% 45-50% 15-20% 3-5% 25-30% 40-45% 20-25% 5-7% 25-30% Int
Slide 4: Size of Opportunity: powertrain and connectivity systems with high barriers of entry
Many powertrain & connectivity systems are expected to have high opportunity, but with high barriers of entry Battery & Related High Components Transmission / Powertrain, Differential connectivity and Application control systems Motor software Controller Darker shade represents the PMSM Motor Produc
Slide 5: Every application has different requirement needing suitable powertrain technology
Every application has different requirement, which needs the most suitable powertrain technology Cost Vehicle Segment Application Torque Speed Robustness Effectiveness Electric 2-wheelers Short distance city commute, (city speed) speed limited to <60 kmph Long distance city / intercity Electric 2-wh
Slide 6: About Us
About Us Final Inspection of Differential Assembly
Slide 7: Our Value Proposition
Our Value Proposition Sizeable and Increasing We are one of the world’s Presence in EVs leading automotive technology companies, designing, manufacturing and supplying mission-critical complex systems Best-in-Class Scaled Player and components for both Financial with High and Performance Profitable
Slide 8: Our Strategic Priorities
Our Strategic Priorities Technology Electrification Global Market Diversification Significance 8
Slide 9: Progress on our technology roadmap with 3 new products in FY22
We have made progress on our technology roadmap by introducing 3 new products in FY22 Autonomous Electric /Connected High Voltage Liquid Cooled Inverter Inverter GaN Inverter High Voltage DC-DC Traction Motors Integrated Converter P4 e-Axle Motors for Bots and Industrial Magnet-free Motors, Automati
Slide 10: Products/solutions for almost every EV drivetrain architecture
For EV drivetrains, we now have products/solutions for almost every architecture Final Drive Differential Assembly Spool Gear Epicyclic Geartrain Final Drive Final Drive Differential Differential Spool Epicyclic Assembly Assembly Gear Geartrain Front Axle Rear Axle Front Axle Rear Axle Front Axle Re
Slide 11: Traction motors: mapping the right technology to the right application
For traction motors we aim to develop products by mapping the right technology to the right application >300 - Target serial production1 in 2023 150-300 - Target serial production1 in 2024 - Target serial production1 in 2026 Electrostatic 100-150 Power Rating (kW) Electrostatic 40-100 SRM Electrosta
Slide 12: Our Strategic Priorities
Our Strategic Priorities Technology Electrification Global Market Diversification Significance 12
Slide 13: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 25% 5,042 2x 30 2.5x 14% 15 2,057 FY21 FY22 FY21 FY22 FY21 FY22 Revenue Share from BEV BEV segment revenue Cumulative No. of EV Programs awarded 15 30 +15 (3+12)1 (9+21)1 EV Programs1 awarded across EV Programs1 awarded across 10 customers as at the end of 19
Slide 14: 30 EV Programs across 19 different customers
30 EV Programs across 191 different customers Europe Asia North America 4 Customers 4 Customers +3 +2 4 Customers 2 2 1 3 3 6 2 2 3 1 9 9 +2 4 +3 4 +2 13 +8 India Programs in serial production Programs in orderbook 10 Customers +6 Programs for geartrain components 3 10 Programs for traction motors,
Slide 15: Our Strategic Priorities
Our Strategic Priorities Technology Electrification Global Market Diversification Significance 15
Slide 16: EV contributes 62% to our net order book of Rs. 186 billion
EV contributes 62% to our net order book1 of Rs. 186 billion 140 bn 30 bn Orders consumed from matured 76 bn Orders added for 186 bn Orderbook at the end of Orderbook at the end of and ramp-up programs during programs won during the Q1 FY22 Q4 FY22 the last 3 quarters last 3 quarters EV Rs. 115 Bill
Slide 17: Our global market share continues to increase across Differential Gears & Starter Motors
Our Global market share continues to increase across Differential Gears & Starter Motors Differential Gears1 CY19 4.5% CY20 5.0% CY21 6.3% Starter Motors1 CY19 2.5% CY20 3.0% CY21 4.6% While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the Indian market for Differential Ge
Slide 18: Our Strategic Priorities
Our Strategic Priorities Technology Electrification Global Market Diversification Significance 18
Slide 19: Diversified Revenue Mix – By Powertrain
Diversified Revenue Mix – By Powertrain Battery EV increasing as a % of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 24.8% in FY21 to 17.6% in FY22 FY19 FY20 FY21 FY22 1% 2% 14% 17% 25% 29% 27% 47% 26% 42% 34% 31% 35% 27%
Slide 20: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 3% 1% 11% 27% 24% 28% FY21 PV FY22 25% FY21 FY21 68% 68% CV 18% 27% 14% 16% 36% 1% 3% 2% 18% OHV 22% 17% 25% 17% 15% FY22 FY22 E2W/E3W 26% 0.1% 1.5% 33% 27% 26% 20
Slide 21: FY22 Financial Performance Highlights
FY22 Financial Performance Highlights 21,306 mn | 36% 5,591 mn | 27% 3,615 mn | 68% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 26.2% EBITDA Margin 17.0% PAT Margin 32.4% 36.3% RoCE1 RoE2 Notes: 1. ROCE = LTM EBIT/ Average tangible capital employed 2. ROE = LTM PAT/ Average tangible ne
Slide 22: Thank you
Thank you Our final drive gears
Slide 23: Appendix
Appendix Outside view of our manufacturing plant at Manesar, Haryana
Slide 24: Product Summary
Product Summary Belt Starter Generator Starter Motor Off Highway Differential Starter Motor Vehicles Assembly Differential Bevel Gears Passenger Vehicles 4 1 1 3 2 2 3 4 Portal Axle Gears Differential Bevel Gears Differential Reverse Idler Assembly Starter Motor Coupling/ Sleeves Differential Bevel
Slide 25: Product Summary
Product Summary Controller Electric 2-Wheelers Drive Motor (PMSM) Differential Bevel Gears Traction Motor (PMSM) Hub Wheel Motor (BLDC) 3 Electric Cars 1 2 3 6 Drive Motor (PMSM) 4 5 Electric 3-Wheelers 1 Controller 2 5 e-Axles Epicyclic Spool Gears Geartrain 1 2 3 Controller Integrated Motor Contro
Slide 26: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Started journey as • 2 Plants • 2 Plants • 47 Customers (37+10) public company • 1 Product • 2 Products • 9 Plants (5+4) • 57 customers • 10 Products (5+5) • 9 plants • 13 products 21,3
Slide 27: Guided by Values
Guided by Values 34.2% Agility Growth 5-year Revenue CAGR 27.4% Vitality Margins Integrity 5-year Avg. EBITDA >28% Returns Frugality ROE Each Year (FY17-FY22) 27
Slide 28: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally 7 of the world’s top 10 PV OEMs1 3 of the world’s top 10 CV OEMs2 Sweden Belgium 7 of the world’s top 8 tractor OEMs2 Germany USA China Mexico India 6 3 9 3 1 8 1 Manufacturing R&D Tool & Warehouse Sales Office 5 Plant Centre Die Shop Notes: 1.
Slide 29: Electrification: Our Approach to Market
Electrification: Our Approach to Market Power Rating Vehicle Segment Geography Products BEV Driveline Business 350-600kw High Performance Core Strength: High Torque - U.S., Asia, Epicyclic High Power Density Europe, India Spool Gears Geartrain BEV 100-350kw Performance Final Drive Differential Diffe
Slide 30: Revenue share from BEV has grown 19x over 3 years
Revenue share from BEV has grown 19x over 3 years, with absolute BEV revenue growth at 29x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 29x 5,042 19x 1.8x 24.8% 2.5x 13.8% 2,057 2.0% 1.3% 174 234 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 30
Slide 31: FY22 Financials
FY22 Financials Revenue (Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 27% 5,591 3,615 YoY: 36% 21,306 YoY: 68% YoY: 37% 3,088 4,410 15,663 2,152 2,256 5,042 17.0% 28.2% 13.7% 14.4% 14.5% 26.2% 2,057 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 (adj) (adj) o BEV Revenue h
Slide 32: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 30.4% Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 4.7 3.9 3.9 3.9 0.76 0.43 (0.01) Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar
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