Schaeffler India Ltd · NSE:SCHAEFFLER
Schaeffler India — Q3 2021 Earnings Presentation
23 slides from Schaeffler India's earnings presentation, Oct 29, 2021
Slide 1: Schaeffler India Limited Investor Presentation - Q3/9M 2021
Schaeffler India Limited Investor Presentation - Q3/9M 2021 October 29, 2021 PUBLIC
Slide 2: Agenda
Agenda 1 Industry & economy 2 Q3 / 9M 2021 Highlights 3 Value creation for shareholders Oct 29, 2021 Schaeffler India Limited | Q3 & 9M 2021 Investor Presentation 2 PUBLIC
Slide 3: Economy | Poised for growth
1 Industry & economy Economy | Poised for growth Key comments GDP growth in YTD Jun-2021 is GDP Growth % (YoY) 1) IIP Growth % (YoY) 2) 20.1 133.5 1 recorded at 9.3% and Q3 is projected at 7.2 27.6 7.2%. 4.6 3.3 3.0 1.6 24.2 -24.4 -7.4 0.5 13.6 11.5 11.9 IIP growth in FY22 Apr-Aug is registered 4.5
Slide 4: Core sector performance | Growth momentum continues
1 Industry & economy Core sector performance | Growth momentum continues 2020 2021 Weight of sector within eight core sectors Cement Production (mn T) Steel Production (mn T) Key comments 5.4% 17.9% 35 11 11 30 31 30 28 30 28 10 10 9 10 10 10 Overall core sector performance in 31 25 11 31 10 10 10 1
Slide 5: Automotive production | PV and Tractors well above pre-covid levels
1 Industry & economy Automotive production | PV and Tractors well above pre-covid levels 2020 2021 Two and three wheelers (mn Units) 1) Commercial vehicles (Th Units) 1) Key Comments • PV and Tractors fairing better 1.9 1.9 2.0 2.3 1.7 1.9 2.5 78 than 2019 1.8 67 69 1.6 1.4 1.9 2.0 80 46 49 55 54 70
Slide 6: Agenda: Q3 / 9M 2021 Highlights
Agenda 1 Industry & economy 2 Q3 / 9M 2021 Highlights 3 Value creation for shareholders Oct 29, 2021 Schaeffler India Limited | Q3 & 9M 2021 Investor Presentation 6 PUBLIC
Slide 7: Q3 2021 | Continued growth momentum
2 Q3 / 9M 2021 Highlights Q3 2021 | Continued growth momentum Key Messages Sales in Q3 EBIT in Q3 32.7% vs Q3’20 56.5% vs Q3’20 Record revenue & profitability growth in Q3. Strong performance across all segments. 20.7% vs Q2’21 38.2% vs Q2’21 14,876 mn INR 2,216 mn INR Sustained strong performance f
Slide 8: Business developments Q3 | Key business wins
2 Q3 / 9M 2021 Highlights Business developments Q3 | Key business wins Automotive Technologies Automotive Aftermarket Industrial Reliability and emission reduction Increased market coverage Precision and Efficiency Key wins in CV and PV for DCT Breakthrough order for tractor 1 dampers and clutches f
Slide 9: Revenue from operations | Strong performance
2 Q3 / 9M 2021 Highlights Revenue from operations | Strong performance Total revenue 2020 2021 Key aspects mn INR 13,168 14,876, • Q3 sales out-performed the market in all business areas 12,329 12,738 11,207 9,285 Growth Q3 2021 vs Q2 2021 9M 2021 vs 9M 2020 Automotive Technologies 15.6% 74.7% 4,389
Slide 10: Earnings Quality | Significant improvement
2 Q3 / 9M 2021 Highlights Earnings Quality | Significant improvement EBIT1 development %Margin 2020 2021 Key aspects mn INR 2,216 • Strong revenue performance across segments, improved mix and 1,806 1,806 1,708 1,604 1,417 countermeasures led to robust EBIT margin in Q3 2021 934 • Record PAT margin
Slide 11: Working Capital, Capex | Continued focus
2 Q3 / 9M 2021 Highlights Working Capital, Capex | Continued focus Working Capital1 2020 2021 Key aspects mn INR 10,101 8,341 8,713 8,383 7,148 6,485 6,358 • Focused working capital management • Judicious capex spending • Improvement in Free Cash Flow Q1 Q2 Q3 Q4 3M’20 3M’21 6M’20 6M’21 9M’20 9M’21
Slide 12: Performance Indicators
2 Q3 / 9M 2021 Highlights Performance Indicators Unit Q3 2021 Q2 2021 Q3 2020 9M 2021 9M 2020 12M 2020 12M 2019 Revenue mn INR 14,876 12,329 11,207 40,373 24,881 37,619 43,606 Revenue growth (YoY) % 32.7% 180.9% 8.3% 62.3% -25.2% -13.7% -4.4% Revenue growth (QoQ) % 20.7% -6.4% 155.3% EBITDA mn INR 2
Slide 13: Agenda: Value creation for shareholders
Agenda 1 Industry & economy 2 Q3 / 9M 2021 Highlights 3 Value creation for shareholders Oct 29, 2021 Schaeffler India Limited | Q3 & 9M 2021 Investor Presentation 13 PUBLIC
Slide 14: COVID 19 | Continue to exercise utmost caution
3 Value creation for shareholders COVID 19 | Continue to exercise utmost caution • > 82 % employees vaccinated • All plants and warehouses working as per local government regulations Prevent Support Motivate • Stringent Covid19 safety • Vaccination camps in factories protocols continued at all and o
Slide 15: Stock split announced | Shareholder value creation
3 Value creation for shareholders Stock split announced | Shareholder value creation 5 for 1 stock split announced • The Board of Directors approved a subdivision of each equity share of face value of Rs 10 per share into five equity shares of face value of Rs 2 per share, subject to approval of the
Slide 16: Dividend payout | Shareholder value creation
3 Value creation for shareholders Dividend payout| Shareholder value creation Dividend History Dividend per share (INR) Dividend payout policy Target The Boarddividend payout of Directors also ratio approved the 30% payout target dividend to 50% 38 ofratio net of 30%-50% of the annual standalone pro
Slide 17: Schaeffler Group to be climate neutral by 2040
Sustainability focus | Schaeffler Group Roadmap for Sustainability and Engagement Own production facilities (Scope 1 and 2) planned to be climate neutral from 2030 Schaeffler Group By 2024, all Schaeffler sites worldwide will purchase electricity to be climate generated from 100 percent renewable so
Slide 18: ESG | Shareholder value creation
3 Value creation for shareholders ESG | Shareholder value creation • Carbon neutrality • Water neutrality • Energy consumption • Human capital development • Supplier capability development • Social and Community development • Leadership in governance • Robust risk management • Processes and systems
Slide 19: Future mobility | E-mobility focus
3 Value creation for shareholders Future mobility | E-mobility focus From component to system solutions Close R&D and application 1 engineering collaboration with competency development Active collaboration with Compact 2 Dynamics and Elmotec Statomet Germany for customer engagement Regulatory envir
Slide 20: Registered office relocation | Change of registered office
3 Value creation for shareholders Registered office relocation | Change of registered office Registered and Corporate Office Schaeffler India Limited 15th Floor, ASTP (Amar Sadanand Tech Park) Baner, Pune – 411045 2 floors – 20,000+ sq ft. Located within city Well connected to all limits travel hubs
Slide 21: Conclusion & Outlook
3 Value creation for shareholders Conclusion & Outlook 1 Consistent growth momentum for four quarters in a row 2 Record revenue and profitability growth in Q3 2021 • Strong performance driven by focused customer outreach. 3 Corporate actions announced - shareholder value creation • Value creation 4
Slide 22: Disclaimer
3 Value creation for shareholders Disclaimer The information contained in this presentation is provided by Schaeffler India Limited (“the Company”), to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither
Slide 23: Thank you for your attention
Thank you for your attention Oct 29, 2021 Schaeffler India Limited | Q3 & 9M 2021 Investor Presentation 23 PUBLIC