Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q4 FY2022 Earnings Presentation
37 slides from Sona Blw Precision Forgings's earnings presentation, May 5, 2022
Slide 1: Q4 & FY22 Earnings Presentation
Q4 & FY22 Earnings Presentation 05 May 2022
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 Team
Our Management Team 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 FY22 Financial Performance Highlights
Q4 FY22 Financial Performance Highlights 5,500 mn | 2% 1,354 mn | -3% 1,047 mn | 75% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 24.6% EBITDA Margin 19.0% PAT Margin 1,486 mn | 104% 29% EV Revenue | YoY Growth Q4 FY22 Revenue Share from EV 4
Slide 5: FY22 Financial Performance Highlights
FY22 Financial Performance Highlights 21,306 mn | 36% 5,591 mn | 27% 3,615 mn | 68% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 26.2% EBITDA Margin 17.0% PAT Margin 32.4% 36.3% RoCE1 RoE2 Notes: 1. ROCE = LTM EBIT/ Average tangible capital employed 2. ROE = LTM PAT/ Average tangible ne
Slide 6: Rising against the tide
Rising against the tide 21,306 36% 28% 15,663 85.25 12,201 82.27 79.47 -3% -3% FY20 FY21 FY22 Global light vehicle sales volume (mn) Sona Comstar Revenue (Rs. mn) 6 Data source for global light vehicle sales: Nomura
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 25% 5,042 2x 30 2.5x 14% 15 2,057 FY21 FY22 FY21 FY22 FY21 FY22 Revenue Share from BEV BEV segment revenue Cumulative No. of EV Programs awarded 24 30 +6 (7+17)1 (9+21)1 EV Programs1 awarded across EV Programs1 awarded across 14 customers as at the end of 19 c
Slide 10: 30 EV Programs across 19 different customers
30 EV Programs across 191 different customers Europe Asia North America 4 Customers 4 Customers +1 +1 4 Customers 2 2 1 3 3 6 2 2 3 1 9 9 +1 4 +1 4 +1 13 +3 India Programs in serial production Programs in orderbook 10 Customers +3 Programs for geartrain components 3 10 Programs for traction motors,
Slide 11: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 11
Slide 12: Orders worth Rs. 76 bn were added to our orderbook during the last 3 quarters
Orders worth Rs. 76 bn were added to our orderbook during the last 3 quarters 43 • 13 EV + 30 Non-EV Programs won • 14 with new customers + in the last 3 quarters 29 with existing customers 10 71 New customers added • 7 EV + 3 Non-EV in the last 3 quarters 60 CY20 CY21 5.0% 6.3% Global Market Share
Slide 13: EV contributes 62% to our net order book of Rs. 186 billion
EV contributes 62% to our net order book1 of Rs. 186 billion 176 bn 10 bn Orders consumed from 20 bn 186 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q3 FY22 programs won in Q4 FY22 Q4 FY22 programs during Q4 FY22 EV Rs. 115 Billion (61.6%) Non-EV Rs. 71 Bi
Slide 14: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 14
Slide 15: 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 24.8% in FY21 to 17.6% in FY22 FY19 FY20 FY21 FY22 1% 2% 14% 17% 25% 29% 27% 47% 26% 42% 34% 31% 35% 27%
Slide 16: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 3% 1% 11% 27% 24% 28% FY21 PV FY22 25% FY21 FY21 68% 68% CV 18% 27% 14% 16% 36% 1% 3% 2% 18% OHV 22% 17% 25% 17% 15% FY22 FY22 E2W/E3W 26% 0.1% 1.5% 33% 27% 26% 16
Slide 17: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 17
Slide 18: We have made progress on our technology roadmap by introducing 3 new products in FY22
We have made progress on our technology roadmap by introducing 3 new products in FY22 Autonomous Electric /Connected High Voltage Liquid Cooled Inverter Inverter GaN Inverter High Voltage DC-DC Traction Motors Integrated Converter P4 e-Axle Motors for Bots and Industrial Magnet-free Motors, Automati
Slide 19: For EV drivetrains, we now have products/solutions for almost every architecture
For EV drivetrains, we now have products/solutions for almost every architecture Final Drive Differential Assembly Spool Gear Epicyclic Geartrain Final Drive Final Drive Differential Differential Spool Epicyclic Assembly Assembly Gear Geartrain Front Axle Rear Axle Front Axle Rear Axle Front Axle Re
Slide 20: For traction motors we aim to develop products by mapping the right technology to the right application
For traction motors we aim to develop products by mapping the right technology to the right application >300 - Target serial production1 in 2023 150-300 - Target serial production1 in 2024 - Target serial production1 in 2026 Electrostatic 100-150 Power Rating (kW) Electrostatic 40-100 SRM Electrosta
Slide 21: Q4 & FY22 Financial Update
Q4 & FY22 Financial Update Our armature used in starter motors
Slide 22: Q4 FY22 Financials
Q4 FY22 Financials Revenue (Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: -3% 1,047 YoY: 2% 1,401 1,354 YoY: 75% 5,393 5,500 YoY: 11% 778 701 597 26.0% 24.6% 1,486 19.0% 730 13.0% 14.1% 11.1% Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 (adj) (adj)
Slide 23: FY22 Financials
FY22 Financials Revenue (Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 27% 5,591 3,615 YoY: 36% 21,306 YoY: 68% YoY: 37% 3,088 4,410 15,663 2,152 2,256 5,042 17.0% 28.2% 13.7% 14.4% 14.5% 26.2% 2,057 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 (adj) (adj) o BEV Revenue h
Slide 24: Abridged Cash Flow
Abridged Cash Flow Numbers in Rs. mn Opening Cash as Net cash flow from Net cash flow from Net cash flow from Closing Cash as on on 1st April 2021 operating activities investing activities financing activities 31st March 2022 EBITDA 5,591 Capex (3,438) Net IPO 2,940 proceeds: ∆ Working (833) capital
Slide 25: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 30.4% Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar-22 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 4.7 3.9 3.9 3.9 0.76 0.43 (0.01) Mar-20 Mar-21 Mar-22 Mar-20 Mar-21 Mar
Slide 26: Q&A New Product Development Discussion
Q&A New Product Development Discussion
Slide 27: Appendix
Appendix Outside view of our manufacturing plant at Manesar, Haryana
Slide 28: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 28
Slide 29: 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) • 57 customers • 10 Products (5+5) • 9 plants • 13 products 21,3
Slide 30: Guided by Values
Guided by Values 34.2% Agility Growth 5-year Revenue CAGR 27.4% Vitality Margins Integrity 5-year Avg. EBITDA >28% Returns Frugality ROE Each Year (FY17-FY22) 30
Slide 31: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally 7 of the world’s top 10 PV OEMs1 3 of the world’s top 10 CV OEMs2 Sweden Belgium 7 of the world’s top 8 tractor OEMs2 Germany USA China Mexico India 6 3 9 3 1 8 1 Manufacturing R&D Tool & Warehouse Sales Office 5 Plant Centre Die Shop Notes: 1.
Slide 32: Product Summary
Product Summary Belt Starter Generator Starter Motor Off Highway Differential Starter Motor Vehicles Assembly Differential Bevel Gears Passenger Vehicles 4 1 1 3 2 2 3 4 Portal Axle Gears Differential Bevel Gears Differential Reverse Idler Assembly Starter Motor Coupling/ Sleeves Differential Bevel
Slide 33: Product Summary
Product Summary Controller Electric 2-Wheelers Drive Motor (PMSM) Differential Bevel Gears Traction Motor (PMSM) Hub Wheel Motor (BLDC) 3 Electric Cars 1 2 3 6 Drive Motor (PMSM) 4 5 Electric 3-Wheelers 1 Controller 2 5 e-Axles Epicyclic Spool Gears Geartrain 1 2 3 Controller Integrated Motor Contro
Slide 34: Electrification: Our Approach to Market
Electrification: Our Approach to Market Power Rating Vehicle Segment Geography Products BEV Driveline Business 350-600kw High Performance Core Strength: High Torque - U.S., Asia, Epicyclic High Power Density Europe, India Spool Gears Geartrain BEV 100-350kw Performance Final Drive Differential Diffe
Slide 35: Revenue share from BEV has grown 19x over 3 years, with absolute BEV revenue growth at 29x
Revenue share from BEV has grown 19x over 3 years, with absolute BEV revenue growth at 29x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 29x 5,042 19x 1.8x 24.8% 2.5x 13.8% 2,057 2.0% 1.3% 174 234 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 35
Slide 36: Our Global market share continues to increase across Differential Gears & Starter Motors
Our Global market share continues to increase across Differential Gears & Starter Motors Differential Gears1 CY19 4.5% CY20 5.0% CY21 6.3% Starter Motors1 CY19 2.5% CY20 3.0% CY21 4.6% While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the Indian market for Differential Ge
Slide 37: Illustration of change in margin despite RM price passthrough
Illustration of change in margin despite RM price passthrough (numbers in INR) Before RM price RM price increase After RM price 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% -3.5% 51.5% 37
Sona BLW Precision Forgings — Q4 FY2022 Earnings Presentation on 6ix