Zf Commercial Vehicle Control Systems India Limited · NSE:ZFCVINDIA
Zf Commercial Vehicle Control Systems India — WABCO India — Q3 FY2020-21 Earnings Presentation
49 slides from Zf Commercial Vehicle Control Systems India's earnings presentation, Feb 12, 2021
Slide 1: WABCO India Limited – Quarterly Earnings Call
WABCO INDIA LIMITED – Quarterly Earnings Call February 12, 2021 © ZF Friedrichshafen AG 1
Slide 2: About ZF Group
01 About ZF Group © ZF Friedrichshafen AG 2
Slide 3: ZF – a global technology company and solutions provider
ZF –a global technology company and solutions provider Shareholders: 93.8% Zeppelin Foundation and 6.2% Dr. Jürgen and Irmgard Ulderup Foundation Car Chassis Active Passive Electronics Electrified Commercial Commercial Industrial ZF Technology Safety Safety and ADAS Powertrain Vehicle Vehicle Techno
Slide 4: ZF's global presence enables a dense network of highly qualified contacts close to customers
ZF’s global presence enables to provide a dense network of highly qualified contacts close to customers As on December 2020, including WABCO North America Europe Locations 54 Locations 135 Employees 31,600 Employees 92,982 ~154,000 Employees Asia-Pacific Locations 55 271 locations in 42 countries Em
Slide 5: ZF & WABCO are highly successful and complementary companies
ZF & WABCO are highly successful and complementary companies See. think. act. €3.1 billion €0.3 billion €36.5 billion €1.5 billion Sales EBIT Sales Adj. EBIT 40 Countries €0.2 billion 41 Countries €2.7 billion 28 Factories R&D Expenditure 241 Factories R&D Expenditure ZF Friedrichshafen AG is one of
Slide 6: ZF - Ready to pivot and further grow in India
ZF - Ready to pivot and further grow in India Overview (CY 2020) 3 8 7 Service Partners? ZF Subsidiariest Engineering Centers? 288 Service Points? 5 128 37 Joint Venture Aftermarket Dealers/ Manufacturing Units? Partners Distributors? Over 6440 Employees 4 1. ZF Subsidiaries - WOS ( ZF India Pune &
Slide 7: ZF Group Strategy – Next Generation Mobility
02 ZF Group Strategy – Next Generation Mobility 2019 | ZF Friedrichshafen AG © ZF Friedrichshafen AG 7
Slide 8: ZF's mission - clean, safe, comfortable and affordable mobility
ZF’s mission - Provide clean and safe, automated, comfortable and affordable mobility for everyone, everywhere Next A clean, safe, comfortable Our mission Generation and affordable mobility Mobility for everyone, everywhere. Commercial Segments Passenger vehicles/ Industrial cars public applications
Slide 9: ZF & WABCO – Deal Rationale
03 ZF & WABCO – Deal Rationale © ZF Friedrichshafen AG 9
Slide 10: ZF shapes the future in 4 technology domains
ZF shapes the future in 4 technology domains, allowing vehicles to see, think and act Vehicle Motion Control Integrated Safety Software Digitalization Automated Driving Electric Mobility © ZF Friedrichshafen AG 10
Slide 11: ZF has strong systems expertise for passenger cars
ZF has a strong and proven systems expertise for passenger cars Occupant Safety Systems Active Chassis Systems Advanced Driver Axle Drives / Assistance Systems Electric Axle Drives Chassis Components Axle Systems Electric Drives Braking Systems Steering Systems Transmission Systems Damping Systems E
Slide 12: ZF and WABCO create a leading global integrated CV systems supplier
ZF and WABCO creates a leading global integrated CV systems supplier CONNECTIVITY «+--+ . SOLUTIONS a SAFETY ELECTRONICS ADAS / AD SYSTEMS. --- POWERTRAIN MODULES CHASSIS MODULES & COMPONENTS ----- AXLE SYSTEMS svesssssese++ (2) WABCO anmatan m
Slide 13: The transaction follows a clear strategic rationale
The transaction follows a clear strategic rationale... ZF Friedrichshafen AG and WABCO The combined company forms the world’s leading integrated systems provider for commercial vehicle technology Developing next generation technology in the field of Autonomous Driving (AD/ADAS) in both commercial an
Slide 14: Creating an integrated solutions provider
…creating an integrated solutions provider Division Division Aftermarket Industrial Integration approach: Division Technology Car Chassis Technology • Focus on customers and day-to day business • Speedy and seamless Division integration built on the Commercial legacy of successful Division Vehicle c
Slide 15: The power of a perfect match
The power of a perfect match Enhancing our technology portfolio, resources and presence to better serve the commercial vehicle sector. Complementary portfolio ADVANCED TECHNOLOGY Passion for breakthrough innovation Globalized and integrated supply chain INDUSTRY LEADERS Global manufacturing
Slide 16: Uniting WABCO and ZF created a customer-focused organization
Uniting WABCO and ZF created a customer-focused organization to advance CV technologies and digital services Sales 2019 Strengthen Commercial Vehicle business Increase CV Sales from 12% to close to 20% 30,000 $3.4 bn €3.7 bn Employees in Commercial WABCO ZF Vehicle Business 61 28 Sites in Commercial
Slide 17: About WABCO India
04 About WABCO India © ZF Friedrichshafen AG 17
Slide 18: WABCO India – A leading supplier to the Indian CV industry
WABCO India – A leading supplier of technologies and services to the Indian CV industry Five decades of market leadership and delivering customer value PantNagar Strong cost competitiveness across the value chain Lucknow Strong , stable and recognized leadership Jamshedpur Customer centric, Total Qu
Slide 19: With a broad market focus well-positioned for a bright future
With a broad market focus well-positioned for a bright future Truck & Bus Trailer Off-Highway Car Fleets Customers (among others): x x x x x © ZF Friedrichshafen AG 19
Slide 20: Recognition for sustained and continuous value creation
Recognition for sustained and continuous value creation… • First company to win Deming Prize and Japan Quality Medal in India • Ranked by industry and media among India’s leading companies • Managing Director ranked among top CEOs by leading organization and business publications P Kaniappan awarded
Slide 21: Recognition for excellence in execution
…and recognition for excellence in execution • Strong relationship with domestic customers for over five decades • Recognized by leading customers for innovation, technology partnership, cost competitiveness, quality and excellence • Recipient of over 30 customer awards over the last decade • 9 awar
Slide 22: Trusted innovation partner for India's OEMs
Trusted innovation partner for India’s OEMs • First to bring advanced technology tailored for Indian CV 2018 market Launch of ADAS with TATA Motors • ABS, AMT, ESC, ADAS, ECAS, Intelligent Trailer Program 2018 • Advancing trailer safety and efficiency in India Launch of Intelligent Trailer • Develop
Slide 23: Excellently positioned to deliver advanced technologies at best cost
Excellently positioned to deliver advanced technologies at best cost • Advanced development organization seeds innovation, leads technology screening and concept validation. Advanced Best Frugal • Frugal engineering expertise with Development Solution Engineering an ability to redesign advanced tech
Slide 24: Successful journey from component supplier to complete systems provider
Successful journey from component supplier to complete systems provider 902 967 873 Exports (Rs crores) TPM Consistency award 635 676 490 469 Technology Center India 181 234 68 134 47 Design and manufacturing of subsystem for TPM Excellence award global OEMs Sales Services Design and Manufacturing o
Slide 25: Offering a powerful portfolio of solutions to empower fleets
Offering a powerful portfolio of solutions to empower fleets End-to-end solutions and services Spare parts along the lifetime of the vehicle Digital services Fleet Management Solutions Genuine spare parts encompassing all requirements OE certified premium quality parts of the fleet eco-system Delive
Slide 26: Driving aftermarket transformation to deliver better customer services
Driving aftermarket transformation to deliver better customer services Digital Distribution Fleet focus focus focus • e-commerce portal rolled out • WABCO shop concept initiated • Transition from product-centric for distributors, dealers and to customer solution centric retailers • Penetrate to 1000
Slide 27: Making trailers more intelligent in India
… and making trailers more intelligent in India Air Disc Brakes Applicable content per trailer EBS Intelligent Trailer Program Air Suspension ABS Air Brakes 2020 © ZF Friedrichshafen AG 27
Slide 28: WABCO India Positioned for Growth and Profitability
05 WABCO India Positioned for Growth and Profitability © ZF Friedrichshafen AG 28
Slide 29: Perfectly positioned to benefit from growth in India and global markets
Perfectly positioned to benefit from growth in India and the global markets Europe North America South America 637 618 579 596 167 142 422 454 104 2019 2020 2025 2019 2020 2025 2019 2020 2025 APAC India 2206 2158 477 1963 365 155 > 6 tonnes vehicles in 000s Source .: IHS Nov. 2020 2019 2020 2025 201
Slide 30: Creating value for WABCO India's shareholders
Creating value for WABCO India’s shareholders Value creation New Innovation Pipeline Partner of Choice for Extensive Technology India’s OEMs Reservoir Global Electrified Capability Partners for fleet Excellence in Execution Connected Innovation & CoE for export Technology manufacturing and Leadershi
Slide 31: Bringing customer & market-oriented, cost-optimized solutions to market quickly
Bringing customer & market-oriented, cost-optimized solutions to market quickly Solving the industry's key challenges Focused on efficiency Focused on safety Focused on digitalization Product and system solutions for the Assistance systems (ADAS) for the Connectivity and software solutions reduction
Slide 32: Applicable Content per Vehicle
Benefiting from increasing penetration of advanced technologies Advanced technology adoption Applicable Content per Vehicle Advanced technology adoption ~$3200 ~$3000 ~$1500 ~$1000 ~$1000 ~$600 ~$300 2014 Today Future * At constant FX © ZF Friedrichshafen AG 32
Slide 33: Autonomous driving - driving into the future
Autonomous driving - driving into the future • Planted seeds towards autonomous driving level in India with truck & bus, off highway OEMs leveraging the product and global expertise • Launched ADAS in India in partnership with TATA Motors in 2018 • Launched India’s first autonomous tractor with Auto
Slide 34: Enabling connectivity - maximizing fleet profitability
Enabling connectivity - maximizing fleet profitability • Advanced fleet management solutions offering full connectivity for vehicles and fleets – hardware, firmware and services • Leverages ZF’s extensive expertise in providing connectivity solutions for OEMs and fleets worldwide • Launched with two
Slide 35: Setting the pace in electromobility solutions
Setting the pace in electromobility solutions - e-Machines - Braking and steering - Inverters systems • Fully integrated solutions provider for electric vehicles - integrated electric drivetrain solutions combining brakes, e-compressor, controllers, steering and acceleration Fully Integrated Electri
Slide 36: WABCO India Performance
06 WABCO India Performance © ZF Friedrichshafen AG 36
Slide 37: WABCO India performance – Q-on-Q revenue
WABCO India performance – Q-on-Q revenue Recovery of sales to pre-crisis levels (in Rs Crores) 0.2% 16.0% 0.6% Market outperformance 713.53 642.53 637.76 5.5% 17.5% 566.50 20.0% 1.9% 0.8 516.87 % 1.7% 5.9% 459.57 446.00 440.95 418.71 404.85 2.2% 165.97 FY 16 FY 17 FY 18 FY 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 38: WABCO India performance – profits before tax
WABCO India performance – profits before tax Translating sales growth to profit expansion (in Rs crores) 15.5% 15.7% PBT as % of product sales 102.73 13.5% 95.45 15.3% 15.6% 14.1% 79.83 75.11 13.8% 13.9% 67.79 73.04 11.7% 12.4% 53.19 50.92 45.80 44.51 FY 16 FY 17 FY 18 FY 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q A
Slide 39: WABCO India performance – profits after tax
WABCO India performance – profits after tax (in Rs crores) 37.19 35.96 Earnings per Share - Rs 70.54 68.21 28.87 28.14 26.97 27.64 54.76 53.37 51.15 17.85 52.43 20.40 18.51 33.86 16.61 38.70 35.11 31.50 FY 16 FY 17 FY 18 FY 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Avg Q Avg Q Avg Q Avg FY 20 FY 20 FY 20 FY 20 FY 2
Slide 40: WABCO India performance – EBITDA
WABCO India performance – EBITDA (in Rs Crores) 18.2% 18.3% EBITDA as % of product sales 120.6 17.3% 18.5% 111.3 18.4% 18.8% 102.3 95.6 90.6 19.7% 20.3% 17.1% 19.5% 81.9 76.0 74.3 67.3 69.8 FY 16 FY 17 FY 18 FY 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Avg Q Avg Q Avg Avg FY 20 FY 20 FY 20 FY 20 FY 21 FY 21 FY 21 -
Slide 41: WABCO India – Delivering increasing shareholder value
WABCO India – Delivering increasing share holder value Total Shareholder Return increased 37 x 8284.55 27 Times 8 Times 196.85 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 © ZF Friedrichshafen AG 41
Slide 42: WABCO India – A Responsible Corporate Citizen
07 WABCO India – A Responsible Corporate Citizen © ZF Friedrichshafen AG 42
Slide 43: WABCO India – A responsible corporate citizen
WABCO India – A responsible corporate citizen… WABCO CSR Safety Community Education Environment Supporting Skilling Environmental Road safety communities individuals responsibility © ZF Friedrichshafen AG 43
Slide 44: Focusing on road safety to reduce accidents and save lives
… focusing on road safety to reduce accidents and to save lives… 8000+ drivers upskilled in partnership with RTOs and STUs PAN India coverage - 6 States covered across South, West North Focused , hands on curriculum with practical sessions, 95% satisfaction Partnership with PRAXAIR for drivers of ha
Slide 45: Supporting local communities in the fight against COVID-19
…and supporting local communities in the fight against COVID-19 31,600 food packages and 300 ltr 16700 21000 10 water bottles sanitizer gloves masks Critical care Monitors distributed 1000 1500 50 100 5300 Disposable bed 4 Personal protective Hospital Pulse oximeters Face shields sheets and pillow H
Slide 46: WABCO India – Q3 Performance
08 WABCO India – Q3 Performance © ZF Friedrichshafen AG 46
Slide 47: Q3 2020-21 Financials
Q3 2020-21 Financials INR Lakhs QTD QTD Sales Profit & Loss Account %age %age vs PY Dec 20 Dec 19 OE Sales 21,904 42.2% 15,663 40.7% 6,241 39.8% AM Sales 7,338 14.1% 7,213 18.7% 125 1.7% A recovering market and an Export Sales 22,663 43.7% 15,635 40.6% 7,028 45.0% Sale of Products 51,905 100.0% 38
Slide 48: Mobilizing Commercial Vehicle Intelligence
Portfolio Innovation Intelligence Safety Efficiency “Mobilizing Commercial Vehicle Intelligence” Network Performance Connectivity Automation Speed 48
Slide 49: Thank you. Welcome your questions and feedback.
Thank you. Welcome your questions and feedback. © ZF Friedrichshafen AG 49