Schaeffler India Ltd · NSE:SCHAEFFLER
Schaeffler India — Q2 2023 Earnings Presentation
21 slides from Schaeffler India's earnings presentation, Jul 27, 2023
Slide 1: Investor Presentation – Q2 and 6M 2023
Schaeffler India Limited Investor Presentation – Q2 and 6M 2023 July 27, 2023 PUBLIC
Slide 2: Agenda
Agenda 1 Economy & Industry 2 2 Business Highlights - Q2 and 6M 2023 6 3 Financial Highlights - Q2 and 6M 2023 11 4 ESG 16 July 27, 2023 Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation 2 PUBLIC
Slide 3: Economy | Growth remains resilient
1 2 Economy & Industry Market Economy | Growth remains resilient GDP 1) 3) 13.1 IIP 1) 3) • Q1 GDP at 6.1%, on growth path backed by moderating inflation 12.8 • IIP growth in 2023 due to healthy run of 6.2 the capital goods sector 6.1 4.0 4.5 4.5 5.2 • YoY Q2 growth in PVs at 6.9%, muted 4.1 2.4 gro
Slide 4: Core sector performance | Growth momentum continues
1 Economy & Industry Core sector performance | Growth momentum continues 2022 2023 YTD CY2023 Growth Key comments Cement Production (mn T) 6.2% Steel Production (mn T) 12.0% Core industry growth YTD May’23 registered at 5.9% compared to 8.7% for 36 36 36 36 13 12 the same period last year 35 11 12 1
Slide 5: Automotive sector performance | Positive momentum remains
1 Economy & Industry Automotive sector performance | Positive momentum remains 2022 2023 YTD CY2023 Growth Two and three wheelers (mn Units) 1) 0.4% Passenger Vehicles (Th Units) 2) 9.8% 1.9 2.1 1.8 1.9 425 406 413 • 2W segment showing signs of 1.8 1.8 390 379 401 390 1.6 1.6 1.7 1.7 1.7 381 379 376
Slide 6: Agenda
Agenda 1 Economy & Industry 2 2 Business Highlights - Q2 and 6M 2023 6 3 Financial Highlights - Q2 and 6M 2023 11 4 ESG 16 July 27, 2023 Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation 6 PUBLIC
Slide 7: Q2 2023 | Strong domestic performance and earnings quality
2 Business Highlights - Q2 and 6M 2023 Q2 2023 | Strong domestic performance and earnings quality Key Messages Sales growth EBIT 1) margin Automotive Technologies growth continues despite subdued market conditions 4.6% vs Q2’22 16.1% Q2’23 Strong growth in Automotive Aftermarket on the back of netwo
Slide 8: Q2 Business developments | Trajectory of wins continues
2 Business Highlights - Q2 and 6M 2023 Q2 Business developments | Trajectory of wins continues Automotive Technologies Automotive Aftermarket Industrial Reliability and emission reduction Increased market coverage Precision and Efficiency Introduced Schaeffler TruPower Two- New business win in the I
Slide 9: Automotive Aftermarket | Introduced Schaeffler TruPower Batteries for Two Wheelers
2 Business Highlights - Q2 and 6M 2023 Automotive Aftermarket | Introduced Schaeffler TruPower Batteries for Two Wheelers Schaeffler TruPower Two-Wheeler Batteries Introduced in June 2023 Robust and Low Corrosive Terminals Imported AGM Special Active Separator for Material for Spill-Proof & High Vib
Slide 10: Industrial | Expansion of industrial production capacity at Savli
2 Business Highlights - Q2 and 6M 2023 Industrial | Expansion of industrial production capacity at Savli Expansion of manufacturing at Savli, Vadodara (Hall 2) Additional capacities of over 10,000 sq.m. of production space, to the existing state of the art manufacturing plant in Savli Investments fo
Slide 11: Agenda
Agenda 1 Economy & Industry 2 2 Business Highlights - Q2 and 6M 2023 6 3 Financial Highlights - Q2 and 6M 2023 11 4 ESG 16 July 27, 2023 Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation 11 PUBLIC
Slide 12: Revenue from operations | Growth momentum continues
3 Financial Highlights - Q2 and 6M 2023 Revenue from operations | Growth momentum continues Total revenue 2022 2023 Key aspects mn INR • YoY growth backed by strong domestic demand in Automotive Business 17,488 18,291 17,564 17,947 and signs of recovery in the Industrial Business 15,675 16,936 • Slo
Slide 13: Earnings Quality | Remains resilient
3 Financial Highlights - Q2 and 6M 2023 Earnings Quality | Remains resilient EBIT1) 2022 2023 Key aspects mn INR 2,941 2,913 • YoY earnings quality remains strong on the back of volume gains and 2,706 2,741 2,756 1,806 2,602 input cost stability 16.6% 16.0% 15.7% 16.1% 15.7% 16.2% • QoQ margins stab
Slide 14: Working capital, Capex | Focus remains
3 Financial Highlights - Q2 and 6M 2023 Working capital, Capex | Focus remains Working Capital 2022 2023 Key aspects mn INR 13,283 12,955 10,101 12,526 • Working Capital - optimal levels continue to be maintained 11,413 9,869 • Capex framework – focus remains, expansion at Savli and Hosur manufactur
Slide 15: Performance Indicators
3 Financial Highlights - Q2 and 6M 2023 Performance Indicators Unit Q2 2023 Q1 2023 Q2 2022 6M 2023 6M 2022 12M 2022 Revenue mn INR 18,291 16,936 17,488 35,228 33,163 68,674 Revenue growth (YoY) % 4.6% 8.0% 41.8% 6.2% 30.1% 23.5% Revenue growth (QoQ) % 8.0% -5.6% 11.6% - - EBITDA mn INR 3,480 3,230
Slide 16: Agenda
Agenda 1 Economy & Industry 2 2 Business Highlights - Q2 and 6M 2023 6 3 Financial Highlights - Q2 and 6M 2023 11 4 ESG 16 July 27, 2023 Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation 16 PUBLIC
Slide 17: Sustainability Roadmap | Long-term commitment with focus on short term goals
4 ESG Sustainability Roadmap |Long-term commitment with focus on short term goals Energy efficiency Renewable energy 4 GWH annual efficiency gain until 2024 100% purchased power from renewable sources CY19 until 2024 Base Year CY30 Climate-neutral supply chain Employee safety Climate-neutral CO2 red
Slide 18: CSR | Three consecutive awards for Project Jal Sahara
4 ESG CSR | Three consecutive awards for Project Jal Sahara Category Won by Schaeffler India: Award Won by Schaeffler India: Award Won by Schaeffler India: Rural Development and The CSR Journal CSR & Sustainability Awards 2022 - Infrastructure (Large) Excellence Award Excellence in Water Conservatio
Slide 19: In Summary
4 ESG In Summary 1 Strong performance for the quarter across all domestic businesses Exports performance moderated owing to global demand 2 conditions Focusing on our growth Volume and efficiency gains helped deliver strong earnings trajectory and long-term 3 performance value creation for our stake
Slide 20: Disclaimer
4 ESG Disclaimer The information contained in this presentation is provided by Schaeffler India Limited (“the Company”), to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any pa
Slide 21: Thank you
4 ESG Thank you July 27, 2023 Schaeffler India Limited | Q2 and 6M 2023 Investor Presentation 21 PUBLIC