Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q1 FY24 Earnings Presentation
35 slides from Sona Blw Precision Forgings's earnings presentation, Jul 27, 2023
Slide 1: Exchange filing cover letter for investor presentation
Date: - 27th July, 2023 BSE Ltd. National Stock Exchange of India Ltd. Regd. Office: Floor - 25, Listing Dept., Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai-400 001. Mumbai - 400 051 BSE Scrip Code: 543300 NSE Scrip: SONACOMS Subject: Investor
Slide 2: Q1 FY24 Earnings Presentation
Q1 FY24 Earnings Presentation 27 July 2023
Slide 3: 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 4: 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 5: Q1 FY24 Financial Performance Highlights
Q1 FY24 Financial Performance Highlights 7,322 mn | 24% 2,034 mn | 43% 1,120 mn | 48% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 27.8% EBITDA Margin 15.3% PAT Margin 1,843 mn | 13% 26% BEV Revenue | YoY Growth Q1 FY24 Revenue Share from BEV 4
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 6
Slide 8: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 26% 1,843 mn 13% Q1 FY24 Revenue Share Q1 FY24 BEV segment Q1 FY24 BEV revenue from BEV revenue YoY growth 42 46 +4 (10+10+22)1 (10+13+23)1 EV Programs1 awarded across EV Programs1 awarded across 26 customers as at the end of 27 customers as at the end of Q4 F
Slide 9: Three new EV order wins strengthened our position
Three new EV order wins have strengthened our position both in the new segments and with existing customers Mid-Drive Differential Hub-Wheel Traction Motor Assembly Traction Motor & Controller For Class 5 Electric CVs For Electric 2-Wheelers For Electric OHVs New Customer Existing Customer Existing
Slide 10: 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 11: 46 EV programs across 27 different customers
46 EV programs across 271 different customers No. of North America Europe2 Asia programs customers 6 Customers +1 5 Customers 4 Customers - 3 12 1 6 2 2 23 10 6 6 14 5 2 3 1 14 7 3 3 10 8 1 1 - 3 3 - +2 4 21 +2 Programs in fully ramped-up production India Programs in ramp-up or not yet in production
Slide 12: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 11
Slide 13: Our net order book grows to ₹220 billion
Our net order book1 grows to ₹220 billion (8.2x FY23 revenue) 215 bn 8 bn Orders consumed from 13 bn 220 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q4 FY23 programs won in Q1 FY24 Q1 FY24 programs during Q1 FY24 Non-EV EV Rs. 171 Billion (78%) Rs. 49 Bill
Slide 14: Significant order win from a global recreational OHV maker
A significant order win from a global recreational OHV maker marks our entry into a new segment of mobility For Recreational Off-Highway Vehicles Final Drive Differential Assembly New Customer Global OEM of ₹ 4,300 mn Q2 FY25 Recreational OHVs addition in our orderbook Start of Production 13
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 14
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 11% in Q1 FY24 FY21 FY22 FY23 Q1 FY24 14% 25% 26% 26% 27% 26% 21% 22% 34% 31% 38% 41% 25%
Slide 17: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 7% 1% 4% 1% 4% 23% FY23 PV Q1 FY24 20% 15% 43% FY23 FY23 69% 72% CV 21% 32% 29% 15% 15% 2.5% 1% 5% 1% 4% 23% OHV 11% 43% 23% 12% 10% Q1 Q1 FY24 FY24 E2W/E3W 4% 2.5% 22% 37% 28% 16
Slide 18: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 17
Slide 19: Adding High Voltage Traction Motors and Inverters to our offerings
We are adding High Voltage Traction Motors and Inverters to our product offerings 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 High Voltage Automation Traction M
Slide 20: Equipmake's spoke architecture is a proven technology
Equipmake’s spoke architecture is a proven technology making their motors amongst the best in the world in power density Conventional Architecture vs Spoke Motor Architecture Power Density (kW/kg) Comparison1 – Equipmake vs Others Magnets Equipmake 2.0 HTM-3500 Voith VEDS HD 1.3 Sinovation HC2U45PWT
Slide 21: Licensed Equipmake products and manufacturing support
We have licensed their well-tested and delivered products for selected markets and will support them with manufacturing also Tested and Delivered their technology to many customers Scope and Terms of our Agreement with Equipmake EV Powertrains (Power output: 100 kW to 440 kW) Products Covered • HTM
Slide 22: Q1 FY24 Financial Update
Q1 FY24 Financial Update Our final drive gears
Slide 23: Q1 FY24 Financials
Q1 FY24 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 43% YoY: 51% YoY: 24% 2,034 YoY: 48% 7,322 1,120 1,142 5,892 1,425 758 27.8% 24.2% 15.3% 15.6% 1,627 1,843 12.9% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY24 (adj) o BEV Revenue grew
Slide 24: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 6.4 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 30.4% 31.4% 30.4% 26.6% 27.1% Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5
Slide 25: Q&A New Product Development Discussion
Q&A New Product Development Discussion
Slide 26: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 27: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 26
Slide 28: 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 a public company • 2 Plants • 2 Plants • 47 Customers (37+10) • 71 customers • 1 Product • 2 Products • 9 Plants (5+4) • 9 plants • 10 Products (5+5) • 17 products Re
Slide 29: 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) 28
Slide 30: 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 31: 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 32: 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 33: 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 34: Revenue share from BEV has grown 20x over 5 years
Revenue share from BEV has grown 20x over 5 years, with absolute BEV revenue growth at 42x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 42x Q1FY24 20x 7,372 Annualized 6,707 25% 26% 26% 5,042 14% 2,057 1.3% 2.0% 174 234 1,843 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q1 FY24 FY19 FY20 FY21 FY22 FY23 FY24
Slide 35: 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
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