Schaeffler India Ltd · NSE:SCHAEFFLER
Schaeffler India — Investor Presentation (April 2023)
45 slides from Schaeffler India's investor presentation, Apr 5, 2023
Slide 1: Regulation 30 filing cover letter
Schaeffler India Limited · Pune · Maharashtra BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C – 1, Block G, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai-400001 Mumbai-400051 Company Code: 505790 Company Code: SCHAEFFLER 05/04/2023 Sub: Inve
Slide 2: Schaeffler India Limited Investor Presentation March 2023
Schaeffler India Limited Investor Presentation March 2023 PUBLIC
Slide 3: Disclaimer
Disclaimer The information contained in this presentation is provided by Schaeffler India Limited (“the Company”), to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part the
Slide 4: Agenda
Agenda 1 Schaeffler Group 2 Schaeffler India 3 Business Overview 4 ESG at Schaeffler India 5 Strategic Overview 6 Financial Overview Schaeffler India Limited | Investor Presentation 3 PUBLIC
Slide 5: A world-leading technology business
Schaeffler Group A world-leading technology business As a leading global supplier to the automotive and industrial sectors, the Schaeffler Group has been driving forward groundbreaking inventions and developments in the fields of motion and mobility for over 75 years. With innovative technologies, p
Slide 6: Facts and Figures
Schaeffler Group Facts and Figures sales of ~ 83,000 ~ 200 6.6% 76 plants 1,250+ employees locations in EBIT margin in patents ~ € 15.8 worldwide 20221 and 20 registered 50+ R&D centers in 2022 billion in countries 2022 1 Before special items Schaeffler India Limited | Investor Presentation 5 PUBLIC
Slide 7: A leading global technology company
Schaeffler Group A leading global technology company Sales by Divisions Schaeffler Group In % of CY 2022 27% Industrial Leading positions in technology and innovation Automotive 60% 13% Automotive 10 customer sectors Technologies Aftermarket Market leading offering from components and Sales by Regio
Slide 8: What sets us apart
Schaeffler Group What sets us apart | The internal strengths of our Company As a pioneer in motion, we Our extremely high quality ensures develop and produce innovative that we are able to meet our customers’ components, systems, and demands in terms of reliability, long services to address importan
Slide 9: Agenda
Agenda 1 Schaeffler Group 2 Schaeffler India 3 Business Overview 4 ESG at Schaeffler India 5 Strategic Overview 6 Financial Overview Schaeffler India Limited | Investor Presentation 8 PUBLIC
Slide 10: Schaeffler India at a glance
Schaeffler India At a glance 1 | GLOBAL EXPERIENCE 2 | QUALITY SERVICE 3 | TOP MANUFACTURER 4 | DEDICATED R&D 5 | PRESENCE & REACH 75+ Years of Global Serving customers 4 state-of-the-art Two dedicated 8 Sales Offices, 330 Experience and Parent across automotive and manufacturing facilities DSIR app
Slide 11: Our company overview
Schaeffler India Our company overview Schaeffler India Over six decades of presence in India, ‘One Revenue (in INR Mn) & EBITDA Margin % Schaeffler India’ entity in 2018, leveraging synergies 68,674 55,605 45,615 43,606 37,618 Diverse high-precision products, strong network across divisions 19.0% 16
Slide 12: Facts and figures
Schaeffler India Facts and figures A strong footprint Localization ratio R&D expenditure ~72,000+ 71% INR 3,927 million 2016 Ludhiana⚫ Total Manufacturing R&D expenditure in India over ⚫Gurgaon Floor Space (sq. mtr.) the past five years Udaipur⚫ ⚫Kanpur ~90,000 75% 2022 Ahmedabad ⚫ Total Manufacturi
Slide 13: Our Journey | Significant milestones in our company history
Schaeffler India Our Journey | Significant milestones in our company history Establishing the business Expanding and growing Leading ahead creating ‘One Schaeffler India’ entity Incorporated the Company LuK India established in Inaugurated INA Inclusion in PLI India Corporate HQ under the name Preci
Slide 14: Board of Directors
Schaeffler India Board of Directors | Emphasis on best-in-class corporate governance Eranti Sumithasri Renu Challu Arvind Balaji Amit Kalyani Dharmesh Arora 80% Chairperson Independent Director Independent Director Independent Director Non-Executive, Non-executive Independent Director Non-Independen
Slide 15: Executive Leadership Team
Schaeffler India Executive Leadership Team | Leading with passion and principles Leadership Principles Connect for Success Harsha Kadam Satish Patel Sameer Mathur Santanu Ghoshal Managing Director & CEO, Director - Finance, Chief Operating Officer Vice President Empower Manage for President (Industr
Slide 16: Agenda
Agenda 1 Schaeffler Group 2 Schaeffler India 3 Business Overview 4 ESG at Schaeffler India 5 Strategic Overview 6 Financial Overview Schaeffler India Limited | Investor Presentation 15 PUBLIC
Slide 17: Customer recognitions for excellence
Business Overview Customer recognitions for excellence Best Quality Awarded for Best Vendor for Partner Level Best Supplier Best Supplier for Performance with Design and the year Award Award for Zero Outstanding Zero Defect Development of 2018-2019 Warranty and Zero Performance in Efficient Products
Slide 18: Manufacturing Footprint
Business Overview Manufacturing Footprint | Our state of the art manufacturing plants Maneja (Vadodara) Savli (Vadodara) Industrial Industrial est. 1962 est. 2012 Hosur Talegaon (Pune) Automotive Automotive est. 1977 est. 2001 Schaeffler India Limited | Investor Presentation 17 PUBLIC
Slide 19: Precision in manufacturing leveraging best-in-class technologies
Business Overview Precision in manufacturing leveraging best-in-class technologies Our manufacturing technologies Our key strengths Large forging Cold forming Heat treatment Innovation Superior Quality Combining 4 USPs to a unique strength Machining Grinding Injection System High-precision Understan
Slide 20: Our sectors | Facilitating motion across
Business Overview Our sectors| Facilitating motion across Two Wheelers Raw Materials Mobility Others 78% 22% Cars and Light Industrial Commercial Vehicles Bearings Engine & 60% Transmission Truck and Bus solutions Power Transmission 40% Offroad Wind Automotive Industrial (incl (incl aftermarket) dis
Slide 21: Automotive Technologies
Business Overview Automotive Technologies The Automotive division Schaeffler provides innovative Enhance Schaeffler’s wallet share with accounts for 39% share of solutions on a wide range of existing relationships and help add new the total business in CY technologies for the automotive clients acro
Slide 22: Automotive Technologies Product Portfolio
Business Overview Automotive Technologies Product Portfolio Engine Transmission Bearings E-Mobility Systems Systems LV HLA+RFF Roller Tappets OAP pulley LV-Clutches DMF Shift Tower CRS +CMC Wheel Bearing Strut Bearing DGBB E-Axle Systems E-motor & Components Mech tensioner HCP Central OCV Input Line
Slide 23: Industrial Division
Business Overview Industrial Division 35% of total business in Product spectrum with bearings Enhance Schaeffler’s wallet share with CY2022 with 40000+ support and components, existing relationships and help add new applications contributing to the quality of clients across the value chain industria
Slide 24: Industrials Product Portfolio
Business Overview Industrials Product Portfolio Rolling bearings and Plain bearings Linear guidance systems Ball Bearings Roller Bearings Other Rolling Bearings Monorail Track Roller Guidance Shaft Guidance System Miniature Plain Guidance System System Guidance System Radial Insert Ball Bearing Bear
Slide 25: Automotive Aftermarket Division
Business Overview Automotive Aftermarket Division 9% share Providing services playing an Intelligent solutions for all light of total business important role in growing reach & heavy commercial vehicles, and connect with mechanics and and tractor clutches other influencer groups 01 02 03 Light Comme
Slide 26: Automotive Aftermarket Portfolio
Business Overview Automotive Aftermarket Portfolio Clutch FEAD Kit Bearings Powering Puneri Paltan Shock Absorbers UJ Cross CJS Continued to maintain our position as ‘Power by’ sponsor with Puneri Paltan (Pune’s team in Pro-Kabaddi League) for the second consecutive year. Lubricants Wiper Blades Oil
Slide 27: Agenda
Agenda 1 Schaeffler Group 2 Schaeffler India 3 Business Overview 4 ESG at Schaeffler India 5 Strategic Overview 6 Financial Overview Schaeffler India Limited | Investor Presentation 26 PUBLIC
Slide 28: Path to Climate Neutrality
Schaeffler Group Path to Climate Neutrality Milestones Action Fields Customers Reduce production emissions and products by three-quarters by 2025 Environment and energy Climate Neutral production by 2030 Suppliers and materials Climate Neutral by 2040 Employees and society The base year for all calc
Slide 29: Schaeffler Group ESG Targets
Schaeffler Group Schaeffler Group ESG Targets | Clear commitment to sustainability Climate Neutral Supply Chain Climate neutral supply chain until 2040 Climate Neutral Production Sustainable Suppliers At all Schaeffler production locations until 2030 90% of the purchasing volume of production materi
Slide 30: Schaeffler India ESG Targets
ESG at Schaeffler India Schaeffler India ESG Targets | Clear commitment to sustainability Climate Neutral Supply Chain Climate neutral supply chain until 2040 Climate Neutral Production Sustainable Suppliers At all Schaeffler production locations until 2030 90% of the purchasing volume of production
Slide 31: Moving towards environment friendly manufacturing
ESG at Schaeffler India Moving towards environment friendly manufacturing Environmental Impact 950 tons 0.24 MW of packaging material Renewable capacity optimized or Converted added during 2021 to Returnable 14% 13% More RE1 used More use of RE1 from over 2019 own production/ PPA2 over 2019 3% 550 M
Slide 32: Enabling holistic social development
ESG at Schaeffler India Enabling holistic social development Social Impact 107.3 Million 100% 1.6% ~48% 91,354 CSR Spend Vaccination of Employees Women in Leadership Reduction in injury rate Lives benefitted from CSR H 19.3 Million 80,000 Healthcare Spend Lives impacted 91,354 Lives impacted O Occup
Slide 33: Governance framework driven by integrity and accountability
ESG at Schaeffler India Governance framework driven by integrity and accountability Governance Framework Governance Structure Our Foundation Code of Conduct Terms of Reference Corporate governance Lay emphasis on integrity and accountability Articles of Association Strategy and Organization Board of
Slide 34: Agenda
Agenda 1 Schaeffler Group 2 Schaeffler India 3 Business Overview 4 ESG at Schaeffler India 5 Strategic Overview 6 Financial Overview Schaeffler India Limited | Investor Presentation 33 PUBLIC
Slide 35: Intact long-term growth story
Strategic Overview Intact long-term growth story Plan for alignment to Roadmap 2025 ESG Division plan Automotive Automotive We will continue to stay Technologies Aftermarket Industrial ahead by demonstrating agility, innovation and efficiency in all that we do. Sustainable and efficient operations f
Slide 36: Creating an integrated ecosystem
Strategic Overview Creating an integrated ecosystem Improve Productivity Better Data Automate & Analysis Streamline Processes Integrated Greater Supply Creating Inventory Chain Control value Best-in-class infrastructure for manufacturing, In addition to enhancing utilization and making Reduce storin
Slide 37: Divisional Strategies | Overarching global direction
Strategic Overview Divisional Strategies | Overarching global direction OUR PURPOSE We pioneer motion to advance how the world moves Automotive Technologies Automotive Aftermarket Industrial • Engine and Transmission Solutions • Product diversification • Sectoral Focus • Enhanced bearing technology
Slide 38: Investing in future
Strategic Overview Investing in future Innovation across all business fields Exports – Strategic Focus Leveraging Global E-Mobility solutions R&D footprint for conventional as well as new Capacity expansion and competence development across the Schaeffler as a “System Partner” for products aimed at
Slide 39: Agenda
Agenda 1 Schaeffler Group 2 Schaeffler India 3 Business Overview 4 ESG at Schaeffler India 5 Strategic Overview 6 Financial Overview Schaeffler India Limited | Investor Presentation 38 PUBLIC
Slide 40: Delivering consistent performance
Financial Overview Delivering consistent performance Revenues (INR Mn) EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 68,674 13,076 8,792 55,605 9,950 6,291 45,615 43,606 7,585 37,618 6,461 4,198 5,401 3,676 2,910 19.0% 12.8% 16.6% 17.9% 9.2% 11.3% 14.8% 14.4% 8.4% 7.7% CY18 CY19 CY20 CY21 CY22 CY1
Slide 41: Maximizing Shareholder Value
Financial Overview Maximizing Shareholder Value Dividend per share (INR) Market Cap Details 34% 11 yr. CAGR - MCap 11-year CAGR 50% 34%^ 24 16 3,751 mn Dividend Payout 7 8 6 2011 2016 2022 2018 2019 2020 2021 2022 43% Dividend Payout Ratio Pay out ratio (% to net profit before exceptional items) ^ A
Slide 42: Capital Market Data
Financial Overview Capital Market Data 1 year stock return (as on 31st Dec, 2022) 3-Jan-22 3-Mar-22 3-May-22 3-Jul-22 3-Sep-22 3-Nov-22 Schaeffler Sensex Price Data (As on 31st Dec 2022) Top 5 Shareholders (% holding) Shareholding Structure (As on 31st Dec, 2022) Face value (INR) 02 Public Kotak Mut
Slide 43: Income Statement
Financial Overview Income Statement Particulars (INR Mn) CY20 CY21 CY22 Revenue from Operations 37,618 55,605 68,674 Other Income 40 235 133 Expenses 32,257 45,890 55,731 EBITDA 5,401 9,950 13,076 EBITDA Margin (%) 14.4% 17.9% 19.0% Interest Income 563 489 644 Finance cost 52 37 36 Depreciation and
Slide 44: Balance Sheet
Financial Overview Balance Sheet Assets (INR Mn) CY20 CY21 CY22 Equity and Liabilities (INR Mn) CY20 CY21 CY22 Non-current Assets Equity Property, plant & equipment 9,259 9,960 10,191 Equity share capital 313 313 313 Right of use assets 798 725 1,031 Other equity 31090 36,224 42,546 Total Equity 31,
Slide 45: Thank you! Completes 60 years of its presence in India
Moving the world for decades Completes 60 years of its presence in India 1 1 Incorporation date 27th April 1962 Thank you! For more information Contact: investorsupport@schaeffler.com Schaeffler India Limited | Investor Presentation 44 PUBLIC
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