Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q4 FY2023 Earnings Presentation
39 slides from Sona Blw Precision Forgings's earnings presentation, May 3, 2023
Slide 1: Q4 & FY23 Earnings Presentation
Q4 & FY23 Earnings Presentation 03 May 2023
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
Our Management 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: Q4 FY23 Financial Performance Highlights
Q4 FY23 Financial Performance Highlights 7,440 mn | 35% 2,014 mn | 49% 1,198 mn | 54% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth1 27.1% EBITDA Margin 16.1% PAT Margin 2,037 mn | 37% 28% BEV Revenue | YoY Growth Q4 FY23 Revenue Share from BEV Notes: 4 1. Excluding exceptional income of
Slide 5: FY23 Financial Performance Highlights
FY23 Financial Performance Highlights 26,756 mn | 26% 6,958 mn | 25% 3,953 mn | 28% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth1 26.0% EBITDA Margin 14.8% PAT Margin 30.4% 26.6% RoCE2 RoE3 Notes: 1. Excluding exceptional income of FY22 2. ROCE = LTM EBIT/ Average tangible capital emplo
Slide 6: Rising against the Tide
Rising against the Tide 26,756 26% CAGR: 30% 21,306 36% 28% 15,663 85.29 12,201 83.15 79.91 79.22 -3% -4% -1% CAGR: -2% FY20 FY21 FY22 FY23 Global light vehicle sales volume (mn) Sona Comstar Revenue (Rs. mn) 6 Data source for global light vehicle sales: Nomura Global Autos Monthly
Slide 7: Update on our Strategic Priorities
Update on our Strategic Priorities Net formed differential gears coming out of our forging press
Slide 8: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 8
Slide 9: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 2.8x 3.3x 1.4x 26% 1.3x 42 25% 6,707 30 5,042 14% 15 2,057 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Revenue Share from BEV BEV segment revenue Cumulative No. of EV Programs awarded 41 42 +1 (10+9+22)1 (10+10+22)1 EV Programs1 awarded across EV Programs1 aw
Slide 10: New order win strengthens presence in Electric CVs
This new order win strengthens our presence in Electric CVs, with new products and increased revenue potential Final Drive Differential + Intermediate Gears + Input/Rotor Shaft For Class 4 Electric CV Our journey of increase in revenue potential North American New Age OEM of CV per electric vehicle
Slide 11: 42 EV programs across 26 different customers
42 EV programs across 261 different customers No. of North America Europe2 Asia programs customers 5 Customers +1 5 Customers 4 Customers - 3 9 1 6 2 2 22 10 5 5 12 5 2 3 1 - 12 7 3 3 9 8 - 3 3 - +1 4 19 Programs in fully ramped-up production India Programs in ramp-up or not yet in production 15 Cus
Slide 12: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 12
Slide 13: Orders worth Rs. 80 bn added to orderbook during FY23
Orders worth Rs. 80 bn were added to our orderbook during FY23 35 Programs won in FY23 49 71 7 New customers added in FY23 CY21 CY22 166 6.3% 7.2% Global Market Share of Differential Gears1 115 CY21 CY22 4.6% 4.1% Global Market Share of Starter Motors1 EV Non-EV Notes: 13 1. As per Ricardo’s market
Slide 14: EV contributes 77% to our net order book
EV contributes 77% to our net order book1 of ₹215 billion (8x FY23 revenue) 238 bn 28 bn Orders consumed from 5 bn 215 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q3 FY23 programs won in Q4 FY23 Q4 FY23 programs during Q4 FY23 Non-EV EV Rs. 166 Billion (77
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 15
Slide 16: 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 15% in FY23 FY20 FY21 FY22 FY23 2% 14% 25% 26% 29% 27% 26% 21% 42% 34% 31% 38% 27% 25% 18%
Slide 17: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 1% 1% 3% 18% 33% 17% 27% FY22 PV FY23 FY22 FY22 68% 69% 22% CV 25% 26% 16% 15% 26% 4% 1% 7% 1% 4% 23% OHV 43% 15% 20% 15% 12% FY23 FY23 E2W/E3W 21% 1.5% 4% 32% 29% 17
Slide 18: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 18
Slide 19: We introduced 4 new products to the market in FY23
We introduced 4 new products to the market in FY23 Autonomous Electric /Connected Integrated High Voltage Inverter Controller with GaN Inverter DC-DC Converter Liquid Cooled Inverter Motors for Bots Integrated and Industrial P4 e-Axle Automation Magnet-free Motors, High Voltage EMSM and SRM Traction
Slide 20: Q4 & FY23 Financial Update
Q4 & FY23 Financial Update Our final drive gears
Slide 21: Q4 FY23 Financials
Q4 FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 49% YoY: 14% 2,014 YoY: 57% YoY: 35% 1,198 1,223 7,440 1,047 5,500 1,354 778 27.1% 24.6% 19.0% 16.1% 14.1% 16.4% 1,486 2,037 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 (adj
Slide 22: FY23 Financials
FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 25% 6,958 YoY: 9% YoY: 29% YoY: 26% 26,756 3,953 3,978 5,591 3,615 21,306 3,088 26.2% 26.0% 17.0% 14.9% 14.8% 14.5% 5,042 6,707 FY22 FY23 FY22 FY23 FY22 FY23 FY22 (adj)2 FY23 (adj) o BEV Revenue g
Slide 23: FCFO of INR 1,996 mn in FY23
FCFO of INR 1,996 mn in FY23 Free Cash Flow from Operations: INR 1,996 mn Numbers in Rs. mn Opening Cash as Net Cash Flow from Capex Other Cash Closing Cash as on on 1st April 2022 Operations Deployments 31st March 2023 EBITDA 6,958 Investments (2,287) ∆ Working Net loan (812) 1,471 capital drawdown
Slide 24: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 30.4% 30.4% 26.6% Mar-20 Mar-21 Mar-22 Mar-23 Mar-20 Mar-21 Mar-22 Mar-23 Mar-20 Mar-21 Mar-22 Mar-23 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 4.7 3.9 3.9 3.9 4.2 3.9 0.76 0.43
Slide 25: ESG Update
ESG Update
Slide 26: Innovative solution to reduce waste disposal and recycle water
We implemented an innovative solution to reduce waste disposal by 75% and recycle 12,000 liters of water per day Previous Process Implementation of Zero Liquid Discharge Treatment Process Die Lubricant Die Lubricant Filtration of oil through (Graphite + Demineralized (Graphite + Rejuvenated Filtrati
Slide 27: Q&A New Product Development Discussion
Q&A New Product Development Discussion
Slide 28: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 29: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 29
Slide 30: 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) • 68 customers • 10 Products (5+5) • 9 plants • 17 products 26,7
Slide 31: Guided by Values
Guided by Values 34.5% Agility Growth 5-year Revenue CAGR 26.8% Vitality Margins Integrity 5-year Avg. EBITDA >25% Returns Frugality ROE Each Year (FY19-FY23) 31
Slide 32: Vertically-integrated electro-mechanical and autonomous solutions provider
Vertically-integrated and modular electro-mechanical and autonomous solutions provider for the new EPIC value chain Customer Mobility Interface Provider Integrated Powertrain Autonomous Solutions Solutions Provider OEM Provider • Radar Boards & Antenna Design • Embedded & Application Software Electr
Slide 33: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally 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 OEMs1a Cologne 3 of the world’s top 10 CV OEMs1b Mexico Location Capacity
Slide 34: Product Summary
Product Summary Belt Starter Generator Starter Motor Off Highway Differential Starter Motor Vehicles Assembly Differential Bevel Gears Passenger Vehicles 5 1 1 4 3 2 2 3 4 Spiral Bevel Gears Differential Bevel Gears Differential Reverse Idler Portal Axle Gears Assembly Starter Motor* Coupling/ Sleev
Slide 35: Product Summary
Product Summary Electric 2-Wheelers Electric Cars Electronically Locking Differential (EDL) Integrated Motor Controller Module 3 (for Predictive Active Epicyclic 1 2 Suspension) Geartrain 3 9 8 7 Spool Gears 5 4 5 6 1 2 Hub Wheel Motor Traction Motor* Drive Motor Electric 3-Wheelers Differential Ass
Slide 36: Electrification: Our Approach to Market
Electrification: Our Approach to Market Driveline Solutions Motor Solutions Core Strength: Core Strength: Power Rating High Torque, High Power Density EV Products Low Voltage, High Power Density Commercial Personal Personal Commercial > 600 kW 300 – 600 kW Epicyclic Spool EDL Geartrain Gears 100 – 3
Slide 37: Revenue share from BEV has grown 20x over 4 years
Revenue share from BEV has grown 20x over 4 years, with absolute BEV revenue growth at 39x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 39x 6,707 20x 5,042 25% 26% 14% 2,057 1.3% 2.0% 174 234 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 37
Slide 38: 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% CY22 7.2% Differential Gears1 Global Market Share of CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the
Slide 39: 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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