Amara Raja Energy & Mobility Ltd · NSE:ARE&M
Amara Raja Energy & Mobility — Amara Raja Batteries — Q4 FY2023 Earnings Presentation
32 slides from Amara Raja Energy & Mobility's earnings presentation, May 24, 2023
Slide 1: Intimation under Regulation 30 - Investor Presentation
May 24, 2023 National Stock Exchange of India Limited BSE Limited Listing Compliance Department Corporate Relations Department “Exchange Plaza” Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Fort Bandra East, Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: AMARAJABAT BSE SCRIP CODE: 50
Slide 2: Q4 & FY23 Earnings Presentation
Amara Raja Batteries Limited Q4 & FY 23 Earnings Presentation
Slide 3: Safe Harbor
Safe Harbor This document contains statements that are not historical facts and are forward looking statements. These forward looking statements inter-alia include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our busin
Slide 4: Our Core Purpose
Our Core Purpose To transform our increasing spheres of influence and to improve the quality of life by building institutions that provide better access to better opportunities, goods and services to more people. . . all the time. 3
Slide 5: The Amara Raja Way
&® The Amara Raja Way ) smazarain INNOVATION Element better ways of doing th Mind State iti Innovation to u: ENTREPRENEURSHIP Element performance to consistently produce Mind State courage and conviction to convert gaps int¢ Mind State outstanding results with lasting impact. Disciplined . opportuni
Slide 6: Journey So far
Journey So far • ARPSL the 1st • ARBL introduces • ARBL received ISO • AMARON brand • PowerZone Brand • New Amaron • 2nd automotive • Subsidiary AMARA company of the VRLA technology in certification automotive launched Logo unveiled battery plant RAJA ADVANCED group was India batteries launched inau
Slide 7: Structure
Structure Amara Raja Batteries Limited (ARBL) Amara Raja Advanced Amara Raja Circular Amara Raja Batteries Amara Raja Power Cell Technologies Solutions Private Middle East (FZE) Systems Limited Private Limited Limited (ARBME) (ARPSL) (ARACT) (ARCSPL) Ownership : 100% Ownership : 100% Ownership : 100
Slide 8: Energy & Mobility
Energy & Mobility Focus on lead acid batteries (LAB) value maximisation and transition to new age technologies. LEAD ACID BATTERIES (LAB) NEW ENERGY & MOBILITY • Focus on Improving Efficiencies by leveraging improved • Li Cell and Pack Manufacturing process/Product Technologies • EV Charging Product
Slide 9: Lead Acid Battery Business
Amara Raja Batteries Limited : Lead Acid Battery Business CURRENT CAPACITIES ARBL 4W Batteries ❖ 7 Battery Manufacturing Plants in two locations ▪ Annualised Capacity: 19 Mn Nos ❖ Largest Private Sector Employer in AP 2W Batteries ❖ Strong work force with average age of 29 years ▪ Annualised Capacit
Slide 10: Distribution Network
Distribution Network SALES & DISTRIBUTION NETWORK - INDIA 23 39 500+ Distribution Amaron Branches Points Franchisees 100,000+ 1000 + 2000 + Power Zone Extensive Points of Sale Retail stores Service hubs. 9
Slide 11: Brands, Applications and Business Outlook
Brands, Applications Business Outlook ➢ Demand for fuel efficient vehicles, meeting stringent regulatory norms, is increasing ➢ Increased use of ISS, EFB, AGM technologies will result in increased share of organized brands ➢ Auxiliary batteries for electric vehicle to enhance demand India 4W Product
Slide 12: Major Accomplishments
Major Accomplishments Market Gains Planned Initiatives MS gain in 4 Wheeler aftermarket New Products Going Digital MS gain in 2 Wheeler aftermarket Introducing New Products with Hyperlocal channel and Activity brand synergy Customer Connect Brand Identity Digital Warranty ➢ Launch of The brand ➢ Ama
Slide 13: Automotive growing footprint
Automotive growing footprint o 12% of Total Revenue from Exports Global motorization rates per 1000 inhabitants o Last 5 years Revenue CAGR of 14% ENTRY/FOCUS - HIGH DENSITY MARKETS Global average ~ 292 Europe BRP : 56M NAMR BRP : 84M A NORWAY 397 A A A A FINLAND RUSSIA 790 CANADA UK SWEDEN A A A A
Slide 14: Industrial Batteries: Double digit growth in FY23
Industrial Batteries: Double digit growth in FY 23 ➢ Strong growth due to 5G rollout & ➢ Demand for industrial UPS batteries ➢ Focus on emerging BESS market in related network Augmentation. continues to be robust. Commercial and Industrial Segments ➢ ARBL continues to have dominant ➢ ARBL meets more
Slide 15: LAB Strategy Outline: Target Revenue Growth of 11 to 12%
LAB Strategy Outline: TARGET REVENUE GROWTH OF 11 TO 12% Automotive International Industrial Drive Efficiencies Expand the presence Energy Solutions Cost Efficiencies with ASG/MSG Expand presence to Europe and Hold the current Market shares in technologies. American Markets Telecom and UPS Deepen th
Slide 16: Initiatives for Growth / Value Maximization
Initiatives for Growth / Value Maximization Advanced Products • AGM batteries for ICE & Micro Hybrids • Auxiliary batteries (AGM) for EV’s • Nest Gen UPS and High Wattage Batteries • Batteries with Eco friendly FR components Process Technology • Complete migration to Stamped Grid range : Cost saving
Slide 17: New Energy Business... New Growth Engine
New Energy Business …New Growth Engine
Slide 18: Market Potential and Market Fit: Indian Market ~150 Gwh
Market Potential and Market Fit : Indian Market ~ 150 Gwh Market Fit Market Potential by FY 30 Pouch ------------ Application Potential in GwH LEV 45 to 50 Prismatic PV 50 to 55 CV 15 to 25 Storage 20 to 30 Cylindrical Total 130 to 160 NMC LFP
Slide 19: Market Potential and Market Fit: Underlying Demand Drivers
Market Potential and Market Fit : Indian Market ~ 150 Gwh Underlying Demand Drivers High customer pull for EVs ensuring market India manufacturing subsidies ensure that the delivered expansion in specific segments as a near given cost of the final product is efficient and competitive 18
Slide 20: EV Chargers
EV Chargers 12Channel Battery Off Board Charger AC Charger DC Fast Charger Swapping Station EV Chargers Input supply 230VAC/415VAC 415VAC 415VAC 150 to 280VAC Output 48-59VDC 230VAC/415VAC 200-1000 V DC 42-58VDC Range 500W to 3000W 3 KW to 22KW 30 KW to 300KW Max. Power of 20KW Conversion details AC
Slide 21: Giga Corridor Roadmap: Divitipally in Telangana
Giga Corridor Roadmap: Divitipally in Telangana FY 25 Phase 1 •Customer Qualification plant •2 Gwh Cell Capacity •2 Gwh Pack facility FY 28 Phase 2 •Cell Capacity of 8Gwh •Pack Capacity of 5 Gwh • Land allotment completed FY 32 • Capital subsidy & power cost subsidy Phase 3 •Cell Capacity of 16 Gwh
Slide 22: Key Strategic Building Blocks
Key Strategic Building Blocks Technology Customers (Cells, Packs and SCM Talent Chargers) • Build in-house competency in • Leverage Customer • Work with Strategic Vendors •Recruitment and on boarding of cell technology development Relationships and collaborate for Capital Equipment and subject matte
Slide 23: Acquisition of Amara Raja Power Systems Limited
Acquisition of Amara Raja Power Systems Limited ARBL to acquire 100% of shares of ARPSL from RFPL Pre-Transaction Structure Post-Transaction Structure ARPSL: Financial Highlights Rs in Cr RN Galla Family Private FY 22 FY 23 RN Galla Family Limited Private Limited (RFPL) Revenue 131 184 (RFPL) EBITDA
Slide 24: Financial Highlights
y U) AMARA RAIA yy») yy) Financial Highlights
Slide 25: Q4 FY23 Standalone Financial Highlights
Q4 FY23 Standalone Financial Highlights EBITDA (₹ Cr) & EBITDA Margin % Revenue (₹ Cr) 2,429 400 30.0% 11.4% 53.4% 337 350 25.0% 300 250 220 20.0% 200 15.0% 2,181 150 13.9% 10.0% 100 10.1% 50 5.0% - 0.0% Q4-FY22 Q4-FY23 Q4-FY22 Q4-FY23* ➢ Over all Automotive Volume growth of 10% to 13% except for tu
Slide 26: FY23 Financial Highlights
FY23 Financial Highlights EBITDA (₹ Cr) & EBITA Margin % Operating Income (₹ Cr) 1,600 32.5% 15.0% 1,355 1,400 14.0% 19.4% 10,386 1,200 1,023 13.0% 1,000 13.0% 12.0% 800 8,696 11.8% 11.0% 600 400 10.0% 200 9.0% - 8.0% FY22 FY23 FY22 FY23* ➢ Strong Volume Growth in Automotive Batteries around 13% and
Slide 27: Key Financial Ratios
Key Financial Ratios Current Ratio ROCE 22.55% 2.44 21.03% 20.44% 2.25 2.12 18.50% 2.02 1.85 14.99% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Asset Turnover Ratio EPS 3.65 3.64 3.28 3.38 40.65 38.69 37.87 2.75 29.93 28.30 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 26
Slide 28: Mission - Skilling Rural India To 'Make In India'
Mission - Skilling Rural India To 'Make In India' Objective to provide systematic technical & non-technical training to people from rural India A free of cost 18-month course including food and accommodation for all the students Spread over 5 acres of land Capacity for 800 students per year
Slide 29: Developed Villages
Developed 2 Villages: Diguvamagham Petamitta Village Skill Development Centre Bank Telephone Exchange Drinking Water Roads Complete Electrification Recreational Park Library Women Employment Primary Health Care School College
Slide 30: Social Forestry and Water Resources
Social Forestry Water Resources for Farming • 222 acres of barren hillock • 23 Check dams for water Adopted for greenery conservation development • De-silting of 3 water • 30 acres purchased and donated bodies to Government • Supply channels to harvest • 70,000 + saplings planted rain water • 40 Tri
Slide 31: Founder and Chairman quotes
Dr. Ramachandra Galla Jayadev Galla (Visionary, Founder Chairman) (Chairman and Managing Director) “ “ To be an entrepreneur is Gotta be a better way reflects our to be a social worker.” attitude of constantly looking for better ways to do things.”
Slide 32: Thank You
>» )) AMARA RAJA yy») yy) THANK YOU
Amara Raja Batteries — Q4 FY2023 Earnings Presentation on 6ix