Endurance Technologies Ltd. · NSE:ENDURANCE
Endurance Technologies — Investor Presentation (November 2023)
31 slides from Endurance Technologies's investor presentation, Nov 24, 2023
Slide 1: Corporate Presentation
Corporate Presentation 24th November 2023
Slide 2: Forward-looking statements disclaimer
The presentation may contain, without limitation, certain statements that could be considered forward-looking. Such forward-looking statements do not guarantee future performance; and may involve risks and uncertainties that could cause actual performance or results to be materially different from t
Slide 3: Company highlights and leadership positions
Commenced operations in 1985 (1) Largest Aluminium die-casting player in India(2) Largest 2W/3W auto-comp company in India(3) Leader in Suspension, Braking , Transmission Presence in Advanced Electronics through Maxwell Leading 4W aluminium die casting player in Europe Financial Strength: Profitabil
Slide 4: Growth strategy: technology, 4W and EV
Technology Leader Four Wheelers (4W) • Introduce high-end technologies for • Reach 45% of Consolidated Turnover in FY30 from 27% premium segment. in FY23 • Expand premium offerings to mid and • Ensure continued growth of our profitable low segment. European operations serving marquee OEMs • Ensure c
Slide 5: Endurance Technologies Ltd. group structure
Promoter Group - 75% Endurance Technologies Ltd. Aluminium Castings, Suspension, Public- 25% (ETL) Transmission and Braking Systems 95% Wholly Owned Maxwell Energy Systems Private Endurance Overseas Srl Endurance GmbH 5% Limited (MESPL), India (EOSrl, Turin, Italy) (Massenbachhausen, Germany) Embedd
Slide 6: Plants and R&D facilities across India, Europe and Africa
31 plants in multiple Locations across India , Europe and Africa Pantnagar R&D Facilities 2 Sanand and Halol Massenbachhausen, Germany Plants 2 3 Test Track Aurangabad 2 4 9 Technical Centre Pune 1 3 Kolar Hammas Sousse, Tunisia 1 1 Grugliasco (1) Italy Chivasso (2) Chennai 8 Lombardore (1) 2 Cirie
Slide 7: Corporate journey and milestones
Endurance Veicoli Adler IPO- public 17.5%. Endurance Maxwell, Full exit to PE. Castings SpA FY22 Frenotecnica, Newfren Partial promoter dilution FY21 FY19 FY23 FY17 EESRL FY14 OFS- Public 25%. Further promoter dilution SCPE stake acquired by Actis EOSRL Indian operations Endurance SpA FY12 consolida
Slide 8: Facility and collaboration timeline FY86-FY09
Chennai-Casting R&D Facility: Casting Pantnagar- Casting, Suspension, Transmission B22 Pune- FY08 FY09 Casting, Machining FY07 Collaboration with KTM- Inverted Front Forks, Monoshox B1/2, 1/3 Pune Casting, Machining L6/3 A’bad- Casting, Machining R&D Facility- Braking K226/2 A’bad- Braking, FY06 R&D
Slide 9: Facility and collaboration timeline FY12-FY23
L6/3 A’bad- Driveshaft A12 Pune- Alloy Wheels (Brownfield) K226/2 A’bad- ABS (Brownfield) E 71 A’bad- Braking FY23 FY22 R& D facility: Driveshaft Vallam- Casting Kolar- Suspension FY21 FY20 Halol- Suspension FGM Collaboration- FY19 AI. Forgings Sanand- Casting, Further Collaboration with Suspension
Slide 10: Endurance Proving Ground test tracks
T7 T8 T1 High Speed Performance Track T3 T5 T2 Ride and Evaluation Track T3 ABS and Evaluation Track T1 B1 T4 Handling Track T2 T4 T5 Gradient Track T6 Steering pad T6 T7 Mud, Water trough and Dust Tunnel T8 Country Track B1 Admin Building, Control Tower & Workshop EPG enables us to test our product
Slide 11: QCDDM focus leading to customer satisfaction
Structured product development to get "first time right" products Develop Focus on developing innovative, lean Facilities (including Proving and cost competitive designs to ground) for material, component, maintain a technological edge product and vehicle level testing across product range Testing &
Slide 12: Legacy, recently added and future products
FUTURE RECENTLY ADDED PRODUCTS PRODUCTS LEGACY PRODUCTS Electronic Suspension for 200cc+ motorcycles 2W ABS Modulator Aluminium Die-castings Embedded Electronic products 2W Aluminium 2W - 2 & 3 Pot Brake Caliper BMS Assembly 3W Driveshaft Alloy Wheels APTC (Assist & Slip) Transmission for 200cc+ mot
Slide 13: Products for 2, 3 and 4 wheelers
Endurance supplies a diverse range of technology-intensive products to 2W / 3W / 4W OEMs Front Forks 2 WHEELERS 3 WHEELERS Master Cylinder Clutch Cylinder Block Hydraulic Shock Absorbers Drum Brake Drum Brake Cylinder Cylinder Head Head Assembly Shock Absorbers Clutch Assembly Tandem Master Drive Sh
Slide 14: Castings in OEMs' light-weighting and Hybrid/EV plans
Endurance is a Tier 1 Supplier for multiple technology intensive products to 4W OEMs STRUCTURAL AND BODY PARTS ENGINE PARTS Steel Wheel Hub Head Axle Cam Carrier Specialty Plastic Cover Exhaust Manifold Cross Member Steering Housing EGR Plastic Pipe Oil Pan Various Brackets EV PARTS TRANSMISSION PAR
Slide 15: Brake system and transmission parts for 2W aftermarket
Endurance is building a strong presence in technology intensive products for 2W, particularly for the Aftermarket BRAKE SYSTEM PARTS TRANSMISSION & FRICTION PARTS Brake Discs Drum Clutch, Gear and Friction Plates Gear Brake Pads Steering Housing Clutch Actuator Torque Limiter 15
Slide 16: Product line: ICE and EV exposure
In India, based on current indications, it is believed that EV penetration in scooters and 3W would be ~75% by 2030 and much lower in motorcycles, at around 10-15%. In Europe, the transition to EV in high-end vehicles, and to Hybrid in mass segment is seen as fast-paced. % of Consol Product Line Sal
Slide 17: Market share in India and Europe
52% India 41% 36% 34% Market share based on internal estimates of 2W market size in India (for our product categories) 15% and quantity of parts sold in ETL in FY23 Front Fork Rear Shox Disc Brake Brake Discs Clutches Systems (1) (1) (2) (1) Percentage calculated on estimated 2W production in India,
Slide 18: Outperformance versus industry growth, FY13-23
Endurance has consistently outperformed growth in the broader industry by successfully expanding its customer base, focus on R&D, ability to manage costs and reducing new product development time. India Production (‘000s) Motorcycles Scooter Moped 2W Industry 3W Industry FY13 11,926 3,027 792 15,744
Slide 19: Revenue, EBITDA and PAT track record
PAT and PAT Margin(2) (Before Minority Interest) Total Revenue (INR mn) EBITDA and EBITDA Margin (INR mn / %) (INR mn / %) CAGR FY16-23: 7.7% 13.5% 14.0% 14.9% 15.3% 16.9% 16.3% 13.2% 12.2% 5.7% 5.9% 6.1% 6.6% 8.1% 7.9% 6.1% 5.4% CAGR FY16-23 : 6.1% CAGR FY16-23: 6.9% 75,375 11,784 5,655 65,777 10,0
Slide 20: Expansion strategy and capital efficiency
Focus on High-end Casting Products Focus on profitable growth • Long-standing relationships with High margin products renowned PV/CV OEMs. Engine Cover / cam carrier Suspension and Body Hub Transmission • Large orders in Expansion Clutch Housing EV/hybrid • Sole supplier status in Strategy Marquee c
Slide 21: Aftermarket sales and growth strategy
Aftermarket Sales (Net Revenue from Operations INR mn) 4.7% 5.5% 4.9% 2001 Higher Margin 4.3% Established Aftermarket 3.6% B2C Business Model Business 3.8% 3.7% KEY HIGHLIGHTS 4189 4311 2384 2707 2977 3116 32 Branding Program for increasing retailers / mechanics contact & loyalty towards the brand 2
Slide 22: Profitable, sustainable, faster-than-industry growth
Operations Technology/R&D • Operational Excellence • Technological Leadership • Winning new orders • Product Development with focus on cost, • Supply Chain Management durability & performance • Innovation • Customer Centricity • Quality • Delivery performance leading to People Governance Profitable,
Slide 23: Values and delivering a larger impact
Delivering a Larger impact SERVICE Achieving ETL’s goals by living the values Integrity & Transparency Honestly, accountability, work ethic, clarity, INTERNAL COHESION communication, openness, trust Innovation Value Creation & continuous improvement TRANSFORMATION Customer Centricity Result orientat
Slide 24: Management of change, culture and diversity
MANAGEMENT OF CHANGE CULTURE Prioritization of human life & environment in decisions Proactive, hardworking, result-oriented, Certification from EHS team for all material/ design / passionate, committed team players who layout changes, expansions, greenfield/ brown field lead by example, believe in
Slide 25: Driving carbon neutrality and zero waste to landfill
DRIVING CARBON NEUTRALITY » Effective utilization of natural resources. DRIVING ZERO WASTE TO LANDFILL & » Creating carbon sinks by developing dense HAZARDOUS WASTE REDUCTION forests and driving plantation. » Transitioning to renewable energy with wind energy and solar power plants across locations
Slide 26: GRI parameters for India business
GRI Parameters for Unit FY23 Achievement India business Carbon neutrality % 22.6 Specific electrical energy consumption 4.2% Reduction in Kwh/ INR Sales Specific thermal energy consumption Reduction in Mkcal/ INR Sales 5.1% Specific water footprint 3.8% Reducton in kL/INR Sales reduction Water recov
Slide 27: Community programs: education, healthcare, environment, livelihoods
HEALTHCARE & EDUCATION ENVIRONMENT LIVELIHOODS SANITATION Renovated 34 schools with libraries, Organized health camps for 5236 villagers Deepened 40kms of natural canals, creating Trained 1500+ individuals at ECOVE computer labs, and toilets with 137 cataract surgeries water capacity of 27 Cr. litre
Slide 28: Awards and recognition
Gold category Award in the India Manufacturing Excellence Awards 2019 by ‘Frost & Sullivan’ Grand Award for QCDDM Recognized amongst India’s “Best performance in 2016-17 by HMSI Managed Companies-2022” by Deloitte. Awarded as ‘Most Innovative, Disruptive & Supplier Quality Excellence Transformationa
Slide 29: Innovatively Agile
INNOVATIVELY AGILE
Slide 30: India entities history
Incorporated High Technology Transmission Systems Incorporated Endurance Systems (India) (India) Private Limited – HTTS, a JV with Adler Private Limited. (ESIPL merged with ETL in S.p.A., Italy for clutch assemblies and CVTs. (merged FY10) with ETL in FY14) ESIPL HTTS FY95 FY02 FY82 FY97 FY23 ESSIPL
Slide 31: Overseas entities history
Incorporated Endurance Overseas ESOrl acquired 15% & later full Assets & liabilities of Grana Srl, EOSrl acquired 99%, and later Srl (EOSrl) Italy, an SPV for stake in FOA SpA.Italy. (since Italy acquired by Endurance full stake in Adler SpA, Italy making strategic overseas renamed as Endurance SpA)
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