Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q3 FY2022 Earnings Presentation
36 slides from Sona Blw Precision Forgings's earnings presentation, Feb 1, 2022
Slide 1: Q3 & 9MFY22 Earnings Presentation
Q3 & 9MFY22 Earnings Presentation 01 February 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: Q3 FY22 Financial Performance Highlights
Q3 FY22 Financial Performance Highlights 4,941 mn | 1% 1,305 mn | -11% 864 mn | 4% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 26.4% EBITDA Margin 17.5% PAT Margin 1,349 mn | 108% 29% BEV Revenue | YoY Growth Q3 FY22 Revenue Share from BEV 4
Slide 5: Passenger Vehicle Sales Trend in US + Europe
Passenger Vehicle Sales Trend in US + Europe 10.00 9.00 Apr-Dec 21 YoY: -1% 8.00 Q4 CY21 YoY: -22% 7.00 6.00 5.00 4.00 Impact of Global Covid-19 related Financial Crisis lockdowns 3.00 Q1 Q2 Q3 Q4E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 6: 9M FY22 Financial Performance Highlights
9M FY22 Financial Performance Highlights 15,806 mn | 54% 4,237 mn | 41% 2,569 mn | 65% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 26.8% EBITDA Margin 16.3% PAT Margin CY20 CY21 CY20 CY21 5.0% 6.3% 3.0% 4.6% 36.1% Global Market Share Global Market Share RoCE3 of Differential Gears1 of
Slide 7: Our Strategic Priorities
Our Strategic Priorities Net formed differential gears coming out of our forging press
Slide 8: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 8
Slide 9: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 23% 3,556 mn 168% 9M FY22 Revenue Share 9M FY22 BEV segment 9M FY22 BEV revenue from BEV revenue YoY growth 20 24 +4 (7+13)1 (7+17)1 BEV Programs1 awarded BEV Programs1 awarded across 11 customers as at the across 14 customers as at the end of Q2 FY22 end of Q
Slide 10: 24 EV Programs across 14 different customers
24 EV Programs across 141 different customers Europe Asia North America 3 Customers 3 Customers 4 Customers 1 2 3 3 5 2 1 3 8 8 3 3 10 India Programs in serial production Programs in orderbook 7 Customers Programs for differential assemblies / gears 3 7 Programs for traction motors / predictive acti
Slide 11: New Program Win – Project Glide
New Program Win – Project Glide1 Predictive Active Suspension Integrated ~ 4,050 mn FY25 Motor Controller Module peak annual revenue2 SOP Year Integrated Motor Controller Module (Motor + Controller + Software) ~2 million lines of code per IMCM Exploded View of IMCM Controller + Software Stator + Rot
Slide 12: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 12
Slide 13: Scaled Player with High and Profitable Growth Outlook
Scaled Player with High and Profitable Growth Outlook Our net order book1 at Rs. 176 billion is 11.2x FY21 revenue 136 bn 4 bn Orders consumed from 44 bn 176 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q2 FY22 programs won in Q3 FY22 Q3 FY22 programs durin
Slide 14: Our Strategic Priorities: Well diversified across categories
Our Strategic Priorities Electrification Global Market Diversification Technology Significance Well diversified across categories Powertrain, Geographies, Products and Vehicle segments 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 25.1% in FY21 to 18.8% in 9M FY22 FY19 FY20 FY21 9M FY22 1% 2% 14% 17% 23% 29% 27% 47% 27% 42% 24% 31% 35
Slide 16: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 3% 1% 11% 27% 24% 28% FY21 PV 9M FY22 25% FY21 FY21 68% 68% CV 18% 27% 14% 16% 36% 1% 3% 2% 20% OHV 24% 24% 18% 17% 15% 9M 9M FY22 FY22 E2W/E3W 0.1% 1% 24% 26% 27% 31% 16
Slide 17: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 17
Slide 18: Increasing level of automation
Increasing level of automation Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 No System Feet-off Hands-off Eyes-off Brain-off No driver Driver Partial Conditional High No Automation Full Automation Assistance Automation Automation Automation The driver is in The vehicle can assist The vehicle can t
Slide 19: Technology Roadmap
Technology Roadmap 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 Automation Magnet-free, Axial Flux and Trapezoidal Stator Predictive Active designs Suspension
Slide 20: Q3 & 9MFY22 Financial Update
Q3 & 9MFY22 Financial Update Our armature used in starter motors
Slide 21: Q3 FY22 Financials
Q3 FY22 Financials Revenue (Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 4% 1,467 YoY: -11% 1,305 834 YoY: -12% 864 4,893 YoY: 1% 4,941 738 30.0% 26.4% 1,349 647 17.0% 17.5% 14.9% Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 (adj) Q3 FY22 o BEV Revenue higher by
Slide 22: 9M FY22 Financials
9M FY22 Financials Revenue (Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 41% 4,237 YoY: 65% 2,569 YoY: 54% 15,806 3,009 10,270 1,555 3,556 29.3% 26.8% 15.1% 16.3% 1,327 9M FY21 9M FY22 9M FY21 9M FY22 9M FY21 9M FY22 o BEV Revenue higher by 167%, constitutes o Posit
Slide 23: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 5.1 5.2 5.6 37.4% 36.1% 39.2% 36.0% 29.1% 32.4% Mar-20 Mar-21 Dec-21 Mar-20 Mar-21 Dec-21 Mar-20 Mar-21 Dec-21 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 5.1 4.4 3.9 3.9 0.77 0.43 (0.08) Mar-20 Mar-21 Dec-21 Mar-20 Mar-21 Dec
Slide 24: Q&A New Product Development Discussion
Q&A New Product Development Discussion
Slide 25: Thank you
Thank you Our final drive gears
Slide 26: Appendix
Appendix Outside 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. 27
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 • 2 Plants • 2 Plants • 47 Customers (37+10) public company • 1 Product • 2 Products • 8 Plants (4+4) • 10 Products (5+5) 21,075 Revenue in INR millions FY17– FY22 FY
Slide 29: Guided by Values
Guided by Values 33.9% Agility Growth 5-year Revenue CAGR 27.6% Vitality Margins Integrity 5-year Avg. EBITDA >28% Returns Frugality ROE Each Year (FY17-FY21) 29
Slide 30: Our Value Proposition
Our Value Proposition Sizeable and Increasing We are one of the world’s Presence in EVs leading automotive technology companies, designing, manufacturing and supplying mission-critical complex systems Best-in-Class Scaled Player and components for both Financial with High and Performance Profitable
Slide 31: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally 6 of the world’s top 10 PV OEMs1 3 of the world’s top 10 CV OEMs1 Sweden Belgium 7 of the world’s top 8 tractor OEMs1 Germany USA China Mexico India 6 3 9 3 1 8 1 5 Manufacturing R&D Tool & Warehouse Sales Office Plant Centre Die Shop Notes: 31
Slide 32: Product Summary
ELECTRIC CARS Product Summary 2 ELECTRIC 2 WHEELERS Drive Motor PMS) Traction Motor (PMSM)* : Controller+ ; Hub Wheel Motor — Lo) Differential Assembly ELECTRIC RICKSHAWS AND 3 WHEELERS Controller SONA COMSTAR 32
Slide 33: Product Summary
PASSENGER Product Summary ey, «> VEnICLes OFF HIGHWAY VEHICLES Storter Motor Bek starter Generator q a Ui | —=s = Pens \ Store oor Diferental Sevel Gears petirg 7 & ] Differential Alternator Reverse Idler Assembly Differential Bevel Gears Portal Axle Geors COMMERCIAL VEHICLES ‘Coupling / Sleeves ® é
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, High Power Density Europe, India BEV 100-350kw Performance Final Drive Differential Differential EDL assembly assemblies
Slide 35: Revenue share from BEV has grown 18x over 3 years
Revenue share from BEV has grown 18x over 3 years, with absolute BEV revenue growth at 27x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 18x 27x 4,742 1.7x 23.4% 2.3x 13.8% 2,057 3,556 2.0% 1.3% 174 234 FY19 FY20 FY21 9MFY22 FY19 FY20 FY21 9M FY22 Annualised 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
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