Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q2 FY23 Earnings Presentation
33 slides from Sona Blw Precision Forgings's earnings presentation, Oct 28, 2022
Slide 1: Q2 & H1 FY23 Earnings Presentation
Q2 & H1 FY23 Earnings Presentation 28 October 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: Our Management Team
Our Management Team Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 4: Q2 FY23 Financial Performance Highlights
Q2 FY23 Financial Performance Highlights 6,574 mn | 12% 1,657 mn | 7% 925 mn | 5% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 25.2% EBITDA Margin 14.1% PAT Margin 1,310 mn | 6% 21% BEV Revenue | YoY Growth Q2 FY23 Revenue Share from BEV 4
Slide 5: H1 FY23 Financial Performance Highlights
H1 FY23 Financial Performance Highlights 12,466 mn | 15% 3,082 mn | 5% 1,684 mn | 5% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth1 24.7% EBITDA Margin 13.5% PAT Margin 27.7% 27.3% RoCE2 RoE3 Notes: 1. Calculated after excluding exceptional income of Q1 FY22 2. ROCE = LTM EBIT/ Average t
Slide 6: Update on our Strategic Priorities
Update on our Strategic Priorities Net formed differential gears coming out of our forging press
Slide 7: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 7
Slide 8: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 25% 2,937 mn 33% H1 FY23 Revenue Share H1 FY23 BEV segment H1 FY23 BEV revenue from BEV revenue YoY growth 36 37 +1 (10+26)1 (10+27)1 EV Programs1 awarded across EV Programs1 awarded across 23 customers as at the end of 23 customers as at the end of Q1 FY23 Q2
Slide 9: 37 EV programs across 23 different customers
37 EV programs across 231 different customers No. of North America Europe2 Asia programs customers 4 Customers 5 Customers 4 Customers - 3 6 1 7 2 2 20 10 4 4 9 6 2 3 1 - 9 7 3 3 7 6 - 3 3 - 4 17 +1 Programs in serial production India Programs in orderbook 13 Customers Programs for geartrain compone
Slide 10: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 10
Slide 11: Our net order book is Rs. 205 billion (9.6x FY22 revenue)
Our net order book1 is Rs. 205 billion (9.6x FY22 revenue) 205 bn 4 bn Orders consumed from 4 bn 205 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q1 FY23 programs won in Q2 FY23 Q2 FY23 programs during Q2 FY23 EV Rs. 140 Billion (68%) Non-EV Rs. 65 Billion
Slide 12: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 12
Slide 13: 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 25% in FY21 to 17% in H1 FY23 FY20 FY21 FY22 H1 FY23 2% 14% 25% 25% 29% 27% 26% 21% 42% 34% 31% 37% 27% 2
Slide 14: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 1% 1% 3% 18% 33% 17% 27% FY22 PV H1 FY23 FY22 FY22 68% 67% 22% CV 25% 26% 16% 14% 26% 1% 4% 2% 7% 4% 21% OHV 42% 18% 17% 15% 15% H1 H1 FY23 FY23 E2W/E3W 21% 1.5% 4% 32% 31% 14
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 15
Slide 16: We have introduced one new product in Q2 and added five more to the roadmap
We have introduced one new product to the market in Q2 and added five more in the technology roadmap Autonomous Electric /Connected Integrated Controller with DC- Liquid Cooled DC Converter GaN Inverter Inverter ADAS High Voltage Sensors Traction Motors Integrated High Voltage P4 e-Axle Inverter Mag
Slide 17: Q2 FY23 Financial Update
Q2 FY23 Financial Update Our final drive gears
Slide 18: Q2 FY23 Financials
Q2 FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 7% YoY: 5% YoY: 12% 1,657 925 6,574 1,544 882 5,857 26.4% 25.2% 1,239 1,310 15.1% 14.1% Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 o BEV Revenue higher by 6% and constitutes o YoY drop of
Slide 19: H1 FY23 Financials
H1 FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: -1% YoY: 5% YoY: 15% 3,082 YoY: 5% 12,466 2,931 1,705 1,684 1,606 10,864 27.0% 24.7% 2,937 2,206 15.7% 14.8% 13.5% H1 FY22 H1 FY23 H1 FY22 H1 FY23 2 H1 FY22 H1 FY22 (adj) H1 FY23 o BEV Revenue
Slide 20: FCFO of INR 649 mn in H1 FY23
FCFO of INR 649 mn in H1 FY23 Numbers in Rs. mn Opening Cash as Net cash flow from Net cash flow from Net cash flow from Closing Cash as on on 1st April 2022 operating activities investing activities financing activities 30th September 2022 EBITDA 3,082 Capex (1,658) Net loan 1,070 drawn ∆ Working I
Slide 21: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 5.7 6.2 5.1 5.2 36.1% 32.4% 34.6% 36.3% 28.8% 30.4% 27.4% 27.7% Mar-20 Mar-21 Mar-22 Sep-22 Mar-20 Mar-21 Mar-22 Sep-22 Mar-20 Mar-21 Mar-22 Sep-22 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 4.7 3.9 3.9 3.9 3.9 3.8 0.76 0.43
Slide 22: Q&A / New Product Development Discussion
Q&A New Product Development Discussion
Slide 23: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 24: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 24
Slide 25: 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) • 60 customers • 10 Products (5+5) • 9 plants • 13 products 24,9
Slide 26: 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) 26
Slide 27: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally Sweden Gothenburg USA Location Capacity3 Tecumseh, MI 1 mn starter motors China Location Capacity3 Belgium Ypsilanti, MI Hangzhou 1 mn starter motors Genk Germany 7 of the world’s top 10 PV OEMs1 Cologne 3 of the world’s top 10 CV OEMs2 Mexico L
Slide 28: 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 Beve
Slide 29: 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 Cont
Slide 30: 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 31: Revenue share from BEV has grown 22x over 4 years
Revenue share from BEV has grown 22x over 4 years, with absolute BEV revenue growth at 34x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 19x *H1 FY23 34x 5,874 Annualized 5,042 25% 25% 14% 2,057 2,937 H 1FY23 1.3% 2.0% 174 234 FY19 FY20 FY21 FY22 H1 FY23 FY19 FY20 FY21 FY22 FY23* 31
Slide 32: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share of CY19 4.5% CY20 5.0% CY21 6.3% Differential Gears1 Global Market Share of CY19 2.5% CY20 3.0% CY21 4.6% Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the Indian market for Di
Slide 33: Illustration of change in margin with 100% RM cost passthrough
Illustration of change in margin with 100% RM cost passthrough Before RM price RM price increase After RM price (numbers in INR) increase @15% increase Revenue 100.00 +6.75 106.75 Material Cost 45.00 +6.75 51.75 Material Profit 55.00 - 55.00 Material Margin 55.0% 350 bps 51.5% Ceteris paribus, 15% R
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