Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q1 FY23 Earnings Presentation
33 slides from Sona Blw Precision Forgings's earnings presentation, Jul 28, 2022
Slide 1: Q1 FY23 Earnings Presentation
Q1 FY23 Earnings Presentation 28 July 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: Q1 FY23 Financial Performance Highlights
Q1 FY23 Financial Performance Highlights 5,892 mn | 18% 1,425 mn | 3% 758 mn | 5% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth1 24.2% EBITDA Margin 12.9% PAT Margin 1,627 mn | 68% 29% EV Revenue | YoY Growth Q1 FY23 Revenue Share from EV Notes: 4 1. Calculated after excluding exceptiona
Slide 5: We continue to grow despite the persistent challenges faced by the automotive sector
We continue to grow despite the persistent challenges faced by the automotive sector in the last two years +18% 5,857 5,892 5,393 5,500 5,007 4,941 4,681 3,648 23.62 21.47 21.46 21.70 1,355 20.71 19.86 18.63 18.02 16.14 -17% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY21 FY22 FY23 Sona Comstar Revenue (Rs. mn) Glo
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 29% 1,627 mn 68% Q1 FY23 Revenue Share Q1 FY23 BEV segment Q1 FY23 BEV revenue from BEV revenue YoY growth 30 36 +6 (9+21)1 (10+26)1 EV Programs1 awarded across EV Programs1 awarded across 19 customers as at the end of 23 customers as at the end of Q4 FY22 Q1
Slide 9: 3 significant EV program wins in Q1 to drive diversified EV growth
3 significant EV program wins in Q1 to drive diversified EV growth Final Drive Differential Traction Motors for Assembly for Electric 2-Wheelers Electric Cars & SUVs 1 program from 2 programs from Indian OEM of Electric and ICE 2 Wheelers European OEM of PVs and EVs ₹ 9,128 mn FY23 ₹ 16,071 mn FY26
Slide 10: 36 EV programs across 23 different customers
36 EV programs across 231 different customers No. of North America Europe2 Asia programs customers 4 Customers 5 Customers +1 4 Customers 3, 4, 5 3 3 6 1 6 2 2 19 10 - 4 4 5 2 9 3 1 4 3 3 7 6 - - 3 3 5 - 9 7 +3 4 16 +3 Programs in serial production India Programs in orderbook Programs for geartrain
Slide 11: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 11
Slide 12: With new wins of Rs. 28 billion our net order book grows to Rs. 205 billion
With new wins of Rs. 28 billion our net order book1 grows to Rs. 205 billion (9.6x FY22 revenue) 186 bn 9 bn Orders consumed from 28 bn 205 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q4 FY22 programs won in Q1 FY23 Q1 FY23 programs during Q1 FY23 EV Rs. 1
Slide 13: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 13
Slide 14: 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 Q1 FY23 FY20 FY21 FY22 Q1 FY23 2% 14% 25% 29% 29% 27% 26% 17% 42% 34% 31% 37% 27% 2
Slide 15: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 1% 1% 3% 18% 33% 17% 27% FY22 PV Q1 FY23 FY22 FY22 68% 67% 22% CV 25% 26% 16% 14% 26% 1% 4% 2% 8% 3% OHV 27% 13% 46% 17% 15% 15% Q1 Q1 FY23 FY23 E2W/E3W 1.5% 4% 17% 32% 30% 15
Slide 16: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 16
Slide 17: Technology Roadmap
Technology Roadmap Autonomous Electric /Connected High Voltage Liquid Cooled Inverter Inverter GaN Inverter High Voltage DC-DC Traction Motors Integrated Converter P4 e-Axle Motors for Bots and Industrial Magnet-free Motors, Automation EMSM and SRM designs Predictive Active Suspension Integrated Mot
Slide 18: Q1 FY23 Financial Update
Q1 FY23 Financial Update Our final drive gears
Slide 19: Q1 FY23 Financials
Q1 FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 3% YoY: -8% YoY: 18% 5,892 1,387 1,425 5,007 822 YoY: 5% 723 758 27.7% 1,627 24.2% 967 16.4% 14.4% 12.9% Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 2 Q1 FY22 Q1 FY22 (adj) Q1 FY23 o BEV Revenue higher by
Slide 20: 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 @25% increase Revenue 100.00 +11.25 111.25 Material Cost 45.00 +11.25 56.25 Material Profit 55.00 - 55.00 Material Margin 55.0% 560 bps 49.4% Ceteris paribus, 25%
Slide 21: We have largely contained margin impact amidst unprecedented RM inflation
We have largely contained margin impact amidst unprecedented RM inflation during the last year, through growth, passthrough and other measures +25% 27.7% 26.4% 26.4% 24.6% 24.2% -350 bps Q1 Q2 Q3 Q4 Q1 Q2 FY22 FY23 Indexed Sona Comstar Alloy Steel Cost EBITDA Margin 21
Slide 22: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 5.7 5.9 5.1 5.2 36.1% 32.4% 34.6% 36.3% 28.8% 28.8% 28.9% 30.4% Mar-20 Mar-21 Mar-22 Jun-22 Mar-20 Mar-21 Mar-22 Jun-22 Mar-20 Mar-21 Mar-22 Jun-22 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 4.7 4.5 3.9 3.9 3.9 3.9 0.76 0.43
Slide 23: Q&A New Product Development Discussion
Q&A New Product Development Discussion
Slide 24: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 25: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 25
Slide 26: 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 23,5
Slide 27: 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) 27
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 37x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 22x 37x *Q1FY23 6,508 Annualized 1.3x 1.2x 28.9% 5,042 24.8% 13.8% 2,057 1.3% 2.0% 174 234 1,627 Q1FY23 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 FY23* 3
Slide 33: 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
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