Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Investor Presentation (November 2024)
25 slides from Bharat Forge's investor presentation, Nov 17, 2024
Slide 1: Bharat Forge exchange filing cover letter
BHARAT FORGE November 17, 2024 To, BSE Limited National Stock Exchange of India Limited Corporate Relations Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G Block Dalal Street, Fort, Mumbai 400 001 Bandra Kurla Complex, Bandra (East) Maharashtra, India Mumbai 4
Slide 2: Company Presentation November 2024
Company Presentation November 2024
Slide 3: Presenters
Presenters Amit Kalyani Kedar Dixit Rajhagopalan S Vice-Chairman & Joint Managing Director Chief Finance Officer Vice President, IR and M&A • Associated with Bharat Forge for over 25 years • Working with Bharat Forge for over 22 years • Working with Bharat Forge for over 19 years 2
Slide 4: Bharat Forge Overview
Bharat Forge Overview
Slide 5: Bharat Forge at a Glance
Bharat Forge at a Glance Scaled, Truly Global Company with Capabilities Built Over Decades Global footprint with capacities Backed by more than 50 years of across 28 manufacturing locations experience in manufacturing wide spread across India, France, range of performance, critical and Germany, Swed
Slide 6: Diversified Product Offerings and Capabilities Across End Use Sectors
Diversified Product Offerings and Capabilities To Serve Customers Across Multiple End Use Sectors Automotive Segments Industrial Segments • Serves major Commercial Vehicle OEM’s and Passenger Vehicle OEM’s • Serves major customers across industrial sector • Includes crankshafts, connecting rods, fro
Slide 7: Compelling Market Opportunities
Compelling Market Opportunities Growth in Automotive, Castings and India Macro Tailwinds Increasing Demand for Defence Products Forgings Strong consumer demand Significant growth in automotive industry Rising global military spendings due to increasing geopolitical tension Rise in middle cla
Slide 8: Well Positioned to Benefit from Industry Tailwinds with Transcontinental Presence
Well Positioned to Benefit from Industry Tailwinds with Transcontinental Presence in all High Growth Markets Fungibility of Assets Allowing Us Flexibility to Address Different Customers, Products and Sectors 12 manufacturing facilities for forging and casting capacity Geographies and number of facil
Slide 9: Advance Research and Engineering Capabilities with Innovation DNA
Advance Research and Engineering Capabilities with Innovation DNA 18 Research Collaborations with Globally Renowned Institutions and Organizations Kalyani Center for Manufacturing and Innovation, Pune (India) Enhance efficiency in Expertise in 180+ engineering, manufacturing to transmissions, protot
Slide 10: Successfully Scaling Up Verticals via Research and Inorganic Growth
Successfully Scaling Up Verticals by Leveraging Research and Engineering Capabilities and Inorganic Growth Opportunities Broad-based forging product offering across Acquired JS Defence E-mobility Autocast various end use Manufacturing products with latest Foray into EV through Further enhances pre
Slide 11: Inorganic Growth Opportunities for Presence Across the Value chain
Inorganic Growth Opportunities for Presence Across the Value chain JS Auto Cast (Acquired in FY23) American Axle India (Signed Definitive Agreement in FY24) Established in 2006 as a supplier to automotive sector Signed agreement to acquire 100% interest in AAM India Manufacturing Corporation Pri
Slide 12: Strategic Roadmap to Drive Continued Growth
Strategic Roadmap to Drive Continued Growth E • Continue to pursue select inorganic D opportunities that allow us to gain customer access, C • Continue to integrate enter new segments, advanced and potential to cross- B technology in all sell solutions to facets of our business customers A • Continu
Slide 13: Board of Directors and Key Management
Board of Directors and Key Management Board of Directors Mr. B.N. Kalyani Mr. Amit B. Kalyani Mr. B. P. Kalyani Mr. S. E. Tandale Mr. Dipak B. Mane Chairman & Managing Director Vice-Chairman & Executive Director- Global Executive Director- Global Business Independent Director Joint Managing Director
Slide 14: Defence Business
Defence Business
Slide 15: Vertically Integrated Footprint
Vertically Integrated Footprint Process Material Designs and Forging and Machining and Precision Gear Cutting Specialized Simulations Precision Forging Machining Heat Treatment Infrastructure Forging & Steel Ordnance Ammunition Defence Fabrication & Assembly & Automotive Missile Manufacturing Manufa
Slide 16: Established Business Line
Strategic Focus Core Business Line Integrated Value Development Product Supplier of 9 Platforms Artillery Systems Protected Vehicles • Ordnance • Protected vehicles • Towed gun systems • Drive away chassis • Mounted gun systems • Driveline business • Ultra-light howitzers • Combat vehicles - tracked
Slide 17: Financial Performance
Financial Performance
Slide 18: Strong Performance Across Cycles
Strong Performance Across Cycles Consolidated Revenue from Operations(1) Diversified Streams of Consolidated Revenue from Operations INR MM Across Geographies and End Segments Providing Cushion in Downturns By Geography (FY24) By Segment (FY24) Defence USA India 10% 21.5% 25% 25% Others 1,56,821 5%
Slide 19: Improving Profitability
Improving Profitability Normalized EBITDA and Normalized Adj. PBT and Adj. PBT Margin PAT and PAT Margin EBITDA Margin INR MM | % INR MM | % INR MM | % 13.7% 16.3% 15.9% 17.8% 6.8% 9.3% 8.9% 10.7% 3.9% 5.8% 5.6% 5.4% 25,579 14,513 9,102 17,675 8,727 8,365 13,882 12,168 6,802 5,084 4,286 4,179 FY23 F
Slide 20: Value Creation for all Stakeholders
Value Creation for all Stakeholders Adj. Return on Capital Employed Adj. Net Debt and Adj. Net Debt to Return on Net Worth (RONW) (ROCE) Equity Ratio % % INR MM 0.7x 0.7x 13.7% 47,628 48,067 12.7% 9.3% 7.6% FY23 FY24 FY23 FY24 FY23 FY24 Improving ROCE Profile with Higher Asset Utilization AA+ (Stabl
Slide 21: Gradual Transition from Tonnage to Technology
Gradual Transition from Tonnage to Technology Reduction in capital intensity as new product driven business ramps Improving ROCE and margins Growth in revenue driven by new business and verticals 20 • 6
Slide 22: Deep Commitment to Sustainability
Deep Commitment to Sustainability ESG Milestones Key Performance Highlights (FY24) The following are the quintessential ESG milestones set forth for our business: 1.07 L MT 14 5.52L GJ Attainment of carbon neutrality by 2040 Waste recovered Energy saving projects to Energy consumed from through recy
Slide 23: Glossary
Glossary CCI Competition Commission of India EBITDA EBIDTA is calculated as Profit before tax as increased by Finance costs and Depreciation, amortization and impairment expense Normalized EBITDA Normalized EBIDTA is calculated as EBIDTA as reduced by Other income and Share of profit/(loss) of assoc
Slide 24: Disclaimer
Disclaimer This document is for the personal information of the authorised recipient(s) and does not constitute an offer or solicitation of an offer to buy/sell any securities. It does not constitute any investment, legal or taxation advice or recommendation in relation to holding, purchasing or sel
Slide 25: Disclaimer (Contd.)
Disclaimer (Contd.) This presentation and the accompanying slides contain selected information about the activities of the Company, its subsidiaries, joint ventures, associates and affiliates (together, the “Group”) as at the date of the presentation. It does not purport to present a comprehensive o