Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Investor Day (December 2022)
90 slides from Bharat Forge's investor day presentation, Dec 9, 2022
Slide 1: Analyst Meet 2022
aY BHARAT FORGE & KALYANI a> ANALYST MEET 2022 g All Hands.One Goal. Inclusive & Sustainable Development < PLANET POSITIVE AN INITIATIVE BY KALYANI GROUP Zz snanar rorct | SO a KALYANI POWERTRAIN | —@ q Power electronics and Micro electronics www.bharatforge.com
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning Bharat Forge’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statemen
Slide 3: Recap of 2019 Analyst Meet
eal BHARAT FORGE Recap of 2019 Analyst Meet
Slide 4: 2019 Analyst Meet Recap
2019 Analyst Meet Recap Trends Strategy BFL investments ▪ Structural shifts in Automobile Industry: Light ▪ ▪ Support Lightweighting & e-Mobility ✓ Accelerate progress of technology players ▪ ▪ Focus to remain frugal ✓ ✓ weighting, EV, emission norms To establish vertically integrated companies lead
Slide 5: 2025 Projections: On Track To Surpass
2025 Projections: On Track To Surpass Exports 21.4% 38.1% Projected 19.1% 2.8% CAGR 5.3% 2018-19 Truck Pass Car Industrial Loco Aero 2024-25 Domestic 7.6% 39.8% 15.1% 3.0% 2018-19 Truck Pass Car Tractor Aero 2024-25 5
Slide 6: Product Overview | Defense & Aerospace
Product Overview | Defense & Aerospace ARTILLERY SYSTEMS PROTECTED VEHICLES Armoured Personnel Carrier Light Specialist Vehicle ✓ Bharat 52 (155 mm) Armoured Troop Carrier Light Bullet Proof Vehicle ✓ ATAGS STRUCTURAL LANDING GEAR JET ENGINE COMPONENTS BLADES ✓ FLAP TRACK FIXED WING ✓ IMPELLER BLISK
Slide 7: Aluminum Road map (2019 Meet)
Aluminum Road map (2019 Meet) • Currently aluminum component business is approx. 15% of total turnover of overseas subsidiaries • BFL group has undertaken expansion of aluminum business in different entities: • BF AT: 4th press line dedicated for aluminum business (SOP: 2020) ✓ • CDP: Conversion of
Slide 8: The Past decade: Financial performance
The Past decade: Financial performance 8
Slide 9: The Past Decade: story of two halves
The Past Decade: story of two halves FY12 - FY17 FY17 - FY22 EBITDA/ KG 76 62,546 56 36,860 38,648 42 16,804 9,168 11,024 FY 2012 FY 2017 FY 2022 FY 2012 FY 2017 FY 2022 Sustained uptrend in operational profitability… Particulars (CAGR) FY 12 - FY 17 FY 17 - FY 22 FY 12 - FY 22 Consol (CAGR) FY 12 -
Slide 10: Geographical Shift
Geographical Shift FY12 - Revenue by Geography FY22 - Revenue by Geography 2% 4% 17% 21% 41% 53% Balanced revenue stream 22% 40% NA exposure driven by broad based growth India NA EU Others India NA EU Others FY12 Revenue – Rs 36,860 million FY22 Revenue – Rs 62,546 million FY12 - Revenue by Business
Slide 11: Shareholder returns
Shareholder returns Share Price FY 2013 - FY 2022 • 15.9% CAGR over the past decade • Zero Equity Dilution • Consistent Dividend payout 11
Slide 12: Key highlights of the decade
Key highlights of the decade • Incubated Defence (2012), EV (2016) & Light weighting (2018) verticals. • Consistent dividend Payout ratio @30% • Invested close to Rs 4,500 crores in CAPEX • Invested ~Rs 1,100 Crores in Subsidiaries • Increased liquidity by ~Rs 1,500 Crores through the decade 12
Slide 13: A Big transition was at play....
A Big transition was at play…. • Close to Rs 5,000 Crore accrual to Net Worth ! • Bill discounting increase led by Exports. ZERO debtor default. • Long Term Loan actually reduced by Rs 120 Crores over the past decade. 13 All amounts in Rs crores
Slide 14: Solid B/S creation and strong core ROCE
…. Solid B/S creation and strong core ROCE Particulars FY 2012 FY 2022 D/E 0.92 0.32 D/E(Net of LTL) 0.49 (0.03) Core ROCE%* 28.3% 28.6% Consol Core op ROCE%* 19.8% 20.1% * ROCE net of BD, Investments and Cash 14 All amounts in Rs crores
Slide 15: Kalyani Strategic Systems Limited – Defence Business
RESTRICTED Kalyani Strategic Systems Limited Investor Presentation – Defence Business Making In India for the world 15 09th Dec 2022
Slide 16: Defence Policy and Structural Reforms
Defence Policy and Structural Reforms – Forefront of Policy Framing Prime Minister Third Positive Make I , Make II, SPV, comments Indigenisation during a naval List iDEX Category event. Projects - Approval for design & dev. of 18 defence equipments by Indian industry ‘We have developed Opportunities
Slide 17: Defence Business Line – In 2019
Defence Business Line – In 2019 2019- Business poised for Exponential growth 2016- ATAGS / Exports Breakout 2014 - Development of Bharat 52 and GARUDA Complete 2013- Development of GARUDA, Signing of JVs, Other DRDO programs 2012 – Start of Development of first Indigenous gun - Bharat 52 Nov 2011 –
Slide 18: Our Business Philosophy
Our Business Philosophy Product Technology Intellectual Property Indian IP Frugality Passion Long Term View Accomplish more with less Commitment towards National Defence Looking beyond the present to deliver future value 19
Slide 19: Platform / Product Development
Technology + IP Creation → Capability Driven Strategy Platform/ Data Analytics Embedded Electronics, Control Systems, AI & Metallurgy & Material Science Platform / Product Development Embedded Product • Metallurgy • Ballistics • System Engineering Electronics, Development • Ordnance • Embedded Elect
Slide 20: Defence Product Line (1/2) – In 10 years
Defence Product Line (1/2) – In 10 years ARTILLERY SYSTEMS PROTECTED VEHICLES ARMOURED VEHICLES (MRO) UNMANNED SYSTEMS ECARS - UGV ATAGS Bharat ULH (Steel) KM4 Armoured Troop Carrier Mobility Solutions Fire Power Solutions Multi-rotor UAV Garuda 105 MArG 155-BR Armoured Personnel Carrier Armoured Tr
Slide 21: Our Product Mix | Key Business Segments
Our Product Mix |Key Business Segments Established Business Line Artillery Business Other Business • Towed Gun • Armoured Vehicle Spares • Mounted Gun • Marine MRO • NFMs • Shells Core Business Line 01 03 02 04 New Business Line Possible Future Vehicles Business Business • Precision Ammunition • Pro
Slide 22: Artillery Systems | Product Overview
Artillery Systems | Product Overview ATAGS MGS ATAGS – 8X8 ULH (High Strength Steel) Garuda 105_v2 Successfully Trial Ordnance Successfully Successfully Test Fired Successfully Trial Evaluated Test Fired Evaluated Awaiting Induction BHARAT 52 BHARAT 45 ULH (Extended Range) MaRG - BR (155mm /39 Cal)
Slide 23: Wheeled Vehicles | Product Overview
Wheeled Vehicles | Product Overview Kalyani M-4 Kalyani Maverick TC 6 : Light Tactical Vehicle TC 6 : Garuda 105 TC6 : Light Bullet Proof Vehicle Inducted in Indian Army Successfully Tested by Indian Successfully Tested by Indian Successfully Trail Evaluated Tested by Indian Army & & Military Agenci
Slide 24: Specialist Vehicles Portfolio
Specialist Vehicles Portfolio WHEELED VEHICLES WHEELED ARMORED FIGHTING VEHICLES TRACKED VEHICLES / TANKS & ( 15 Ton to 25 Ton) TRACKED RECOVERY VEHICLES TRUCKS PLATFORMS (25 Ton to 45-50 Ton ) ( 3 Ton to 20 Ton) • Military Logistic trucks /Load Carriers • IFV – Amphibious • Light Weight Tank • Spec
Slide 25: Armoured Vehicles – Spares & MRO | Product Overview
Armoured Vehicles – Spares & MRO |Product Overview Running Gear • Road Wheel Ordnance • Tracks • Barrel (100mm, 120mm & • Sprocket 155mm • Road Wheel arm • Breech • Supporting Wheel • Muzzle brake • Suspension Powertrain Ammunition • Crankshaft • 100mm to 155mm Shells • Connecting Rod (Only empties)
Slide 26: Unmanned Systems | Product Profile
Unmanned Systems | Product Profile UNMANNED GROUND VEHICLE (UGV) UNMANNED AERIAL VEHICLE (UAV) UNMANNED UNDERWATER VEHICLE (UUV) Tracked Multi Rotor (VTOL) Expendable Mobile Target Emulator Wheeled Loitering Ammunition Underwater Targets Speed: Up to 20 kmph Multi-role Modular UGV • Maximum Take off
Slide 27: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) PRINCIPLES Kalyani Strategic Systems Limted (KSSL), wholly owned subsidiary of Bharat Forge Limited (BFL), being a global engineering and technology organization with significant interest in Defence & Aerospace, aims to contribute to India’s strive towards
Slide 28: Aerospace
BHARAT FORGE Aerospace < KALYANI 30
Slide 29: Aerospace Business - Building a value-added product portfolio
Aerospace Business - Leveraging our expertise in components – Building a value-added product portfolio • Gas Turbines - Marine, Aerial (Microturbines & APUs) Integrated Systems & • Turbomachinery - Aerospace, IC. Engines-Railways, Projects Submarines, Tanks • Undercarriage Sub- Assemblies • Transmis
Slide 30: Aerospace Business – Focus areas
Aerospace Business – Focus areas Engine/Rotative Undercarriage Transmission Structures Projects – With Tier 1 & OEMs Atmanirbhar Bharat Composite Rotor Blade Marine Gas Turbine AMCA IMRH APU - Helicopters Landing Gears/Undercarriage MRO – Transmission – IAF MRO – LRUs – IAF MRO/Spares H/C MRO IAF Su
Slide 31: Aerospace Business – Focus areas
Aerospace Business – Focus areas Projects – Atmanirbhar Bharat Composite Rotor Blade Marine Gas Turbine AMCA IMRH APU - Helicopters Landing Gears/Undercarriage MRO – Transmission – IAF MRO – LRUs – IAF MRO/Spares H/C MRO IAF Turbo Machinery - IN Enhanced scope to do MRO/Spares & Integrated sub-syste
Slide 32: Global Aluminium Strategy
Global Aluminium Strategy Pune, 9th December 2022 34
Slide 33: A Compelling Market Opportunity for Aluminum
A Compelling Market Opportunity for Aluminum BFAL is well positioned to benefit from several key industry tailwinds which supports demand for castings and forgings MARKET LANDSCAPE ▪ Increasing auto production rates - as supply chain issues abate and the world recovers from COVID-19, global lightwei
Slide 34: Overview of BFAL's History
Overview of BFAL’s History BFAL has a long track record of launching new businesses in distinct markets across geographies; the creation of a holding company to manage these assets will enhance focus and drive growth TIMELINE AND KEY MILESTONES 1996 2014 2019 BFAT launched BFAT won multi-year order
Slide 35: Bharat Forge Aluminum Overview
Bharat Forge Aluminum Overview BFAL anticipates to comprise four plants leveraging relationships with marquee OEM customers, and portfolios of key products BFAT BFALUS CLWT Forging Forging Casting ▪ Aluminum forging facility located in Germany, ▪ Aluminum forging facility located in Sanford, ▪ Alumi
Slide 36: Extensive Product Development Capabilities
Extensive Product Development Capabilities Leading Research & Development at CLWT CLWT will allow BFAL to innovate and design various casting products quickly to meet customer needs OPERATING FOOTPRINT MANUFACTURING CAPABILITIES Distance from plant: Technologies ▪ Chennai Airport – 90km Design ▪ Che
Slide 37: Extensive Product Development Capabilities
Extensive Product Development Capabilities CLWT Delivers Key Products in Aluminum Lightweighting CWLT’s mission-critical products are well-diversified across the parts spectrum and position the business to capitalize on the secular shift toward lighter-weight aluminum, as well as electric vehicles m
Slide 38: Strategic Investments in Global Footprint
Strategic Investments in Global Footprint Meaningful capital has been invested to establish a global footprint to support planned growth; locations strategically placed in close proximity to top customers GEOGRAPHIC OVERVIEW Operational [2021] Operational [1996] Operational [2019] Owned / Leased [Ow
Slide 39: BF Aluminum Strategy – Based on BFAT 10-years Journey
BF Aluminum Strategy – Based on BFAT 10-years Journey BFAT’s successful ramp highlights the potential in BFAL’s other facilities BFAT HISTORICAL PERFORMANCE ($MM) 120.0 17% 15% 17% Key Messages 15% Installation of 1st HCM line 100.0 at BFAT 91.6 13% ▪ 15+ years experience in the Aluminum Forgings sp
Slide 40: BFAL has Multiple Growth Levers
BFAL has Multiple Growth Levers BFAL has multiple levers to grow above and beyond what is in the financial forecast OPPORTUNITIES FOR GROWTH Capitalize on Market Tailwinds Capitalize on secular tailwind in vehicle lightweighting REVENUE GROWTH Expand with Existing Geographic Expansion Expand Existin
Slide 41: BF Aluminum Strategy – BFALUS
BF Aluminum Strategy – BFALUS Impressions of the New Plant in Sanford, NC 43
Slide 42: BF Aluminum Strategy – BFALUS
BF Aluminum Strategy – BFALUS Impressions of the New Plant in Sanford, NC - HCM Melting Furnaces & Casting Modules incl. Racking 44
Slide 43: BF Aluminum Strategy – BFALUS
BF Aluminum Strategy – BFALUS Impressions of the New Plant in Sanford, NC - Forging Line incl. Billet Heating & Heat Treatment, Shot Blasting & Testing & Lab BF AT Video 45
Slide 44: Kalyani Powertrain Limited
Kalyani Powertrain Limited e-Mobility presentation for 2022 BFL Analyst meeting BFL Analyst meeting | 09th Dec 2022 46
Slide 45: Bharat Forge | e-Mobility Journey
Bharat Forge | e-Mobility Journey Business Vertical set-up with strategic partnerships CLWT- Mambattu, in Electric Vehicle domain India Kalyani Mobility Inc, USA 2017 2018 2019 2020 2021 2022 © 2022 Kalyani Powertrain Limited - Confidential and Proprietary 47
Slide 46: KPTL: e-Mobility Business update
KPTL: e-Mobility Business update Kalyani Powertrain Locations KALYANI Mobility Inc. MI, USA GERMANY REFU Elektronik GmbH Pfullingen, Germany ElectroForge, CA, USA ElectroForge Ltd. Pune REFU Drive India Pvt. Ltd. Pune PUNE MAMBATTU Kalyani Centre for Lightweighting Technology Kalyani Powertrain Limi
Slide 47: Product Portfolio and Capabilities
KPTL: e-Mobility Business update Product Portfolio and Capabilities Advanced Technologies Product Portfolio aligned to EV markets Future products (2025) Embedded Systems Power Electronics Traction / Drivetrain H2 Fuel cell based powertrain solutions Data Analytics Advanced Electric Chassis Artificia
Slide 48: Electroforge JV status update
KPTL: e-Mobility Business update Electroforge JV status update • JV with Harbinger Motors “ElectroForge” unveiled on 14th Sep’22 at Detroit Auto show • Electroforge will operate from India for high volume production and cater to requirements of a) Harbinger for their Skateboard Chassis b) India Dome
Slide 49: Business Verticals
KPTL: e-Mobility Business update Business Verticals PLI Covered Electronic Components Manufacturing Make in India for global markets; Automotive Grade Power & Control Electronics Commercial Vehicle Re-Powering Immediate market necessity for existing mid-life Trucks / Buses 2W e-Bike & 3W Kits (TORK
Slide 50: TORK Motors Update
KPTL: e-Mobility Business update TORK Motors Update ✓ 500+ happy customers till date ✓ FAME-II certificate received on 19th Oct’22 ✓ Pune’s first experience centre inaugurated on 26th Nov’22 ✓ Cumulative Mileage covered 619,000 KM ✓ Dealers appointed in Hyderabad; Bangalore & Chennai ✓ YTD PAN India
Slide 51: Unit-1 (contract mfg.): Plant readiness status update
KPTL: e-Mobility Business update Unit-1 (contract mfg.): Plant readiness status update First Micro-factory for e2W & e3W Kits mfg. Manufacturing of : Asset Lite model: Chakan – Phase II, Pune Plant SOP : Q1 / 2023 e-Motor Battery pack Bike Assembly 53
Slide 52: CV Re-Powering business update
KPTL: e-Mobility Business update CV Re-Powering business update STATUS : 6.12.2022 ✓ KPTL- Repowered Commercial Vehicle in N3 Category – 1st of its kind to get AIS123 (EV Retro-fitment) Certification in India ✓ Full load mileage accumulation – cumm. 11500+km as on date ✓ 2 vehicle platforms and 3 mo
Slide 53: Unit-2 (CV Re-Powering): Plant readiness status update
KPTL: e-Mobility Business update Unit-2 (CV Re-Powering): Plant readiness status update ✓ CV Repowering Pilot Plant : Chakan Phase II, Pune ✓ Capacity : 1000 CV Conversions / Annum ✓ 10 Production bays, 3 Inspection bays ✓ With additional scope for e-CV kitting External view of Construction site at
Slide 54: Electronic Components business update
KPTL: e-Mobility Business update Electronic Components business update – Power & Control tgt. products High Voltage DC-DC Convertor Vehicle Control Unit (VCU) 4 kW, 650VDC to 24VDC: Platform Hardware ready, EMI/EMC Certified First Application : Electric HCV First Application : Electric CV 1st patent
Slide 55: Unit-3 (Electronic Components): Plant readiness status update
KPTL: e-Mobility Business update Unit-3 (Electronic Components): Plant readiness status update Products : PCB-A for various products; VCU, DC-DC, OBC, Invertors, Motor Controllers, BMS. State of the art Electronic Manufacturing Plant ✓ EMS Solution under 1 roof: SMT, Conformal & Box assy line ✓ SMT
Slide 56: Overall Business Plan
KPTL: e-Mobility Business update Overall Business Plan “Strong Growth opportunity across segments” ✓ Clearly defined Market Go-To strategy, working as per plan ✓ Growth opportunities in all market segments & EV business verticals ✓ Market launch confidence via product testing & validation ✓ Building
Slide 57: Investor Presentation – JS Autocast
Investor Presentation – JS Autocast 59
Slide 58: Overview: JS Autocast
< Overview: JS Autocast qosaure cas¥ 60
Slide 59: Overview: JS Autocast
Overview: JS Autocast ▪ 18-year-old young company, initially supplying to the automotive sector. ▪ Leading manufacturer of high-grade machined ductile iron castings, which find applications in wind energy, hydraulics, automotive and power generation sectors. ▪ Manufactures machined castings of up to
Slide 60: Strong Growth Record
Strong Growth Record Revenue (Rs Crores) 404 • 37% CAGR since inception 292 • 23% CAGR in the past decade 251 261 • Annual growth in revenues continuously over the past 178 183 decade barring Covid 21 114 lockdown. 97 54 65 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 62
Slide 61: Uniqueness of JSA
Uniqueness of JSA ▪ Full-service supply capability ▪ Expertise in manufacturing and handling unique grades and critical components. “ We take up what others regret” ▪ Leader in small sized wind turbine castings ▪ New product development: First Time Right ▪ Environment conscious plant with focus on c
Slide 62: The Road ahead
The Road ahead ▪ Growth from Key Existing Customers ▪ Growth from Newly Acquired Customers ▪ Growth from Hydraulics, Earthmoving and off-Highway Segments ▪ Investing in New Technology leveraging KCTI & KCMI facilities ▪ Green Castings using 100% Renewable Energy ▪ Expand product portfolio across sma
Slide 63: Investor Presentation – ESG
Investor Presentation – ESG 65
Slide 64: BFL ESG & Sustainability Framework – Approach adopted
BFL ESG & Sustainability Framework – Approach adopted Materiality Assessment ESG Assessments Customer Priorities Competition & Key Supplier’s Priorities 66
Slide 65: BFL ESG & Sustainability - Roadmap
BFL ESG & Sustainability - Roadmap • Scope 1 (35%) & Scope-2 (60%) lesser emissions by 2035 • Supplier Assessment (100% Suppliers) by 2023 • 50% lesser Carbon footprint by 2035 • Sustainability certifications for Suppliers (EX:ISO 14k / 45k / 50k) • Carbon Neutral by 2040 • 50% RE by Top suppliers b
Slide 66: BFL Decarbonization Roadmap
BFL Decarbonization Roadmap BFL Decarbonization Roadmap • Implement ISO 50001 Certification • Monitoring using Industry 4.0 Platform • Monitoring using Industry 4.0 Platform • Minimize losses in the • Connect & Coach Energy consumption Suppliers for RE Conversion / Energy efficiency • Energy efficie
Slide 67: BFL ESG & Sustainability – Key Initiatives
BFL ESG & Sustainability – Key Initiatives • Mapping & Certification by external agency • Water Consumption Monitoring & control Environment • Climate Change strategy (RE / Energy Efficiency / Clean • Sustainable packaging / Waste reduction & recycling Technology) • ISO Certifications - 14k, 45K, 27
Slide 68: BFL ESG & Sustainability – Planet Positive Initiative
BFL ESG & Sustainability – Planet Positive Initiative Sustainability Report – 2021-2022 BFL – ESG Webpage 70
Slide 69: BFL - ESG Rankings - 2021 & 2022
BFL - ESG Rankings - 2021 & 2022 2021 2022 Results Awaited 71
Slide 70: BFL ESG & Sustainability - Goals & Priorities – 2022-2023
BFL ESG & Sustainability - Goals & Priorities – 2022-2023 • Energy (Electrical) reduction by 2% YoY vs 2019 Baseline (260GWh) Environment – 5.2 GWh Reduction • Carbon Footprint Mapping & 3rd Party Validation • Renewable Energy – 50% in 2023 (PPA in place) • Water (freshwater) – 15% against 2019 BL (
Slide 71: Components Business
COMPONENTS BUSINESS Analyst Meet: 9th Dec, 2022 73
Slide 72: Bharat Forge at a Glance…FY 2022
Bharat Forge at a Glance…Y 2022 68% 60+ 40+ 15 700K TPA Exports Global Customers Domestic Customers Plants globally Global Forging Capacity 50+ years 30+ years 70% Materials Weights Manufacturing Exporting of Revenue Highly Engineered Steel, 1 kg – 2500 kg (CD) Experience Experience Up to 50,000 kg
Slide 73: Our Products…
Our Products… Drive 60+% HD CVs in US & EU; also in APAC and S. America Drive 2.7 Mln+ new PVs annually Drive severe-duty construction vehicles Reliably operate standby power for hospitals, nuclear energy, data centers Support high efficiency Frac operations Fly business jets; take off & land commer
Slide 74: Our Customers…India + Global
Our Customers…India + Global Commercial Vehicles Passenger Vehicles Industrial Segments All CV OEMS’ All leading Major OEMS’ across (except China) PV OEMS’ including some indicated segments E-Vehicles 76
Slide 75: Customer Accolades: 2021-22
Customer Accolades: 2021-22 Global Supplier of the Year Quality for the Year Supplier of the Year Performance Leader Sustainability Initiatives Lead Partner level performance Business alignment – Gold 77
Slide 76: Key Focus Areas…
Key Focus Areas… CUSTOMER THE RIGHT THE RIGHT NEW PRODUCTS LEANEST FIRST CAPACITY AGILITY & INNOVATION COST STRONG FOCUS ON EXECUTION, DESPITE ADVERSITY BFL 2.0 WILL BE THE KEY ENABLER 78
Slide 77: Recap: Exports Growth Commitment
Recap: Exports Growth Commitment CAGR projected 5% 19% 3% - 21% 38% in FY20 CAGR projection now1 -10% 70%+ of FY25 projected business is already secured O&G Loco Aero Market share expected to further Industrial increase in core products Pass Car Truck Increased penetration in PV and Aero segments Di
Slide 78: Recap: Domestic Growth Commitment
Recap: Domestic Growth Commitment CAGR Commitment 3% 15% 8% - made in FY20 CAGR Commitment Now1 Agri Industrial Truck Pass Car FY19 FY25 (P) 1. Basis current TIV projections for FY25 80
Slide 79: Market Outlook: Key Markets in 2023
Market Outlook1: Key Markets in 2023 GDP% 0.5% Flat GDP% 6.1% GDP% 1.0% +9.3% GDP% 1.0% +7% -4% Stable -15% +6.5% +6.5% Stable 6% Stable Stable Flat Stable Stable Stable Flat Europe2 Brazil North America India 1. Sources: Reports by IMF ACT, AFS, ACEA, SIAM and internal projections basis discussions
Slide 80: Our Playground – Exports: Technology Transition
Our Playground – Exports: Technology Transition 2030 View: Expected penetration of Electrification1 100% % Electrification by 2030 (US & EU) → Limited impact 50% expected in core Developing future ICE engine areas till 2033-34 program for EURO 7 and beyond; including Hydrogen ICE 20% 0% 43% 31% 21%
Slide 81: Our Playground – Domestic: Technology Transition
Our Playground – Domestic: Technology Transition 2030 View: Expected penetration of Electrification1 100% % Electrification by 2030 (India) → Only 3W & 2W to see significant EV transition 50% Among pass cars, EV transition to be slower in SUV segment3 10% 5% 0% 46% 23% 19% 12% CV Industrial PV Other
Slide 82: GOI Vision: Manufacturing – India @100- Y 2047
GOI Vision: Manufacturing – India @100- Y 2047 20X growth expected in Indian Auto Components Industry, including CV Auto industry expected to be $2 Trillion, with 30% Exports 6X growth expected in PV volumes Significant industrial growth expected, driven by infra growth in India and China+1 localiza
Slide 83: Our Strategy…
Our Strategy… Horizon 1 & 1.5 Horizon 2 (Segments expansion) (Aggregates and Products) 2020 – 2030 Beyond 2025 New Segments Last Man Standing Products & Technologies Core Components Expansion across Core + Industrial Electrification Aerospace BFL 2.0 WILL BE THE KEY ENABLER 85
Slide 84: Strategy Execution: Last Man Standing
Strategy Execution: Last Man Standing Maximize Asset Utilization Quantum Increase in Productivity Operate at Leanest Cost High Focus on Market Share Consolidation via M&A Priorities Alignment with Future Programs Customer LTAs till 2035 Global Expansion M&A Customer Strategy awarded in CV, PV Partne
Slide 85: Strategy Execution: All Segments
Strategy Execution: All Segments Components + Industrial Electrification Components Aerospace Support KPTL Products Increase Value Content Supply to Global OEMs Grow Aerospace Components Priorities Priorities Priorities Grow Customers Innovation Engines & Segments Expand Markets Velocity Aero Struct
Slide 86: Vision 2030: Capability Driven Strategy
Vision 2030: Capability Driven Strategy 88
Slide 87: Salient features of BFL 2.0
Salient features of BFL 2.0 • Securing more business as supply chain consolidation hastens. • China+1 and Europe+1 is real Traditional • ICE is the dominant power train for heavy load applications. Business • Transformation from a component supplier to a product/ system supplier within a decade. • 1
Slide 88: Salient features of BFL 2.0
Salient features of BFL 2.0 Salient features of BFL 2.0 Large TAM Right to Win Adjacencies Good Margins Large TAM Defence Good Margins Large TAM High Margins Castings Market Leader Aerospace Deep Moats High Margins Large TAM Automotive Right to Win New Markets High Margins High ROCE Large TAM EV Goo
Slide 89: Vision 2030: Capability Driven Strategy
Vision 2030: Capability Driven Strategy • 12 - 15% CAGR Revenues • Balanced revenues stream across components & products. Consol EBITDA% • 20%+ as the businesses grow/turnaround. Consol ROCE% • 500 bps improvement from FY22 levels of 20%. • Organic & In-organic growth Capital • Dividend at 30%+ Allo
Slide 90: Let's outdo the future, together!
Let's o u t d o the future, together! 92