Bharat Forge Ltd · NSE:BHARATFORG

Bharat Forge — Investor Presentation (December 2015)

14 slides from Bharat Forge's investor presentation, December 2015

1. Slide 1: Analyst Meet

   AUTOMOTIVE AUTOMOTIVE ENERGY OIL & GAS THERMAL POWER ANALYST MEET December 2015 | Bharat Forge Ltd. | Mumbai MAKING IN INDIA FOR THE WORLD AVIATION RAILWAYS MARINE MINING CONSTRUCTION

2. Slide 2: Global Truck Industry Outlook

   Global Truck Industry Outlook Heavy Trucks ‘000 Particulars 2014 2015 2016 2017 NA 290 320 270 245 EU 225 251 264 268 Brazil 93 45 45 50 Major Markets 608 616 579 563 % change 1.3% (6.0)% (2.8)% Trucks > 6T ‘000 Particulars 2014 2015 2016 2017 NA 502 535 497 484 EU 271 306 322 327 Brazil 127 62 62 6

3. Slide 3: State of Markets

   State of Markets Particulars INDIA NORTH AMERICA EUROPE Commercial Vehicles Passenger Vehicles – High End ----- Passenger Vehicles – Mass Market Oil & Gas ----- Construction Mining Aerospace ----- Power (Renewable & Thermal) ----- 12/9/2015 3

4. Slide 4: Outlook for FY2016

   Outlook for FY2016 Macro Environment • Increased volatility and uncertainty over the past 3 months. • Sharp volume drop in commodity and allied business (O& G, Construction & mining, HHP). • Temporary increase in inventory of class 8 trucks from 2 months to 3.5 months. Production at OEM’s to be adju

5. Slide 5: Coping with the new environment

   Coping with the new environment Despite uncertainty in some of our business segments, BFL continues to create and implement opportunities for growing business. New products/sectors & customers are being added. We continue to invest in R & D and Talent pool creation • Technology development Strategy

6. Slide 6: Revenue enhancement strategy

   Revenue enhancement strategy Quick response for NPD and execution in serial production Increase market share with existing customers– India & Global TRUCKS (known products) Broaden product offering. Add new customers in India and Global CARS Develop new products. Value Addition : Forging  Mac

7. Slide 7: Revenue enhancement strategy

   Revenue enhancement strategy  Complete approvals for engine components with OEM’s.  Other forgings under development  Trial order for new product/ assembly expected LOCO  Grow export business on existing products. Road-map in place and Actions initiated.  Targeting components services business.

8. Slide 8: Revenue enhancement strategy

   Revenue enhancement strategy  Preparing for the next upturn  Strong customer alignment being developed.  Penetrate sub-sea- no current share. Customer activity initiated. OIL & GAS  Identified new areas of business where exotic material is used, will provide good value addition potential.  Add

9. Slide 9: Key Internal Initiatives

   Key Internal Initiatives • High organizational focus on execution including velocity in responding to opportunities and engagement with customers • Strengthen CRM across all levels. • High focus on Short – Medium – Long term revenue enhancements • High focus on increasing Share of Business with Dome

10. Slide 10: Make In India focus

    Make In India focus • Derivative of the “Make In India” initiative is the focus on import substitution. • BFL has identified 4 sectors (Mining, Power, Railways, Marine & Defense) • These sectors are today catered to by huge imports of consumables. These are also the sectors where growth is expected

11. Slide 11: BFL Defense Opportunity

    BFL Defense Opportunity • BFL has been supplying components and sub systems for the Indian Defense establishments. • Opportunities BFL is pursuing are as below • Components • Artillery programs • DRDO Programs • Offset programs • Service business ALL CAPEX AND CAPABILITIES IN PLACE TO CAPTURE THE AB

12. Slide 12: Update on Strategic Goals - 2018

    Update on Strategic Goals - 2018 S . No Goals Status 1 Increase Passenger Vehicle Progressing smoothly with ramp of orders revenues from 5% to 15% of sales received from Export market. Witnessing traction from Domestic markets also. 2 Entry into Aerospace sector Signed contracts with 4 marquee custo

13. Slide 13: Disclaimer

    Disclaimer This presentation contains certain forward looking statements concerning Bharat Forge’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statemen

14. Slide 14: Thank You

    Thank You MAKING IN INDIA FOR THE Mal (SIRS EIB fF. BHARAT FORGE | KALYANI

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