Exide Industries Limited · NSE:EXIDEIND
Exide Industries — Investor Presentation (May 2022)
47 slides from Exide Industries's investor presentation, May 2022
Slide 1: Exide Industries – Investor Presentation
Exide Industries – Investor Presentation May 2022
Slide 2: Agenda
Agenda 1 Business Overview 2 Automotive Vertical 3 Industrial Vertical 4 New Business: Lithium-ion Batteries 5 Key Financial Highlights 6 Sustainability Initiatives & CSR 2
Slide 3: Business Overview
QEXIDE 7> Business Overview
Slide 4: Business at a snapshot
Business at a snapshot 75+ Years 57 million Rs.12,500 Automotive of Operations crore+ Batteries in India Market Capitalization produced p.a. Presence in 5 billion AH Rs.12,000 60+ of Industrial Power crore+ Countries Supply p.a. Revenues 10 2.4 million Rs.750 Units of Punch Manufacturing crore+ Grid
Slide 5: Key Milestones – A Cherished Journey
Key Milestones – A Cherished Journey Foray into • Forays into manufacturing of Chloride Acquisition Takeover of lead smelting Lithium-ion batteries and First factory R&D Industries of second industrial operations battery management established in established in Ltd. renamed home UPS undertakings thr
Slide 6: Comprehensive product portfolio serving multiple applications
Comprehensive product portfolio serving multiple applications We manufacture batteries for multiple We are a reliable power solution provider for all applications in automotive sector industrial applications Non- Vehicular Power Vehicular Exports Solar 4-Wheeler 3-Wheeler Industrial applications Rai
Slide 7: Eminent Board of Directors with rich experience and expertise
Eminent Board of Directors with rich experience and expertise Mr. Bharat Dhirajlal Shah Mr. R.B. Raheja Mr. Subir Chakraborty Chairman and Vice Chairman and Managing Director and Independent Director Non-Executive Director Chief Executive Officer Mr. Asish Kumar Mukherjee Mr. Arun Mittal Mr. Avik Ro
Slide 8: Shareholding pattern and major institutional investors
Shareholding pattern and major institutional investors SHAREHOL DING PATTERN AS ON Marquee Institutional Investors MARCH 31, 2022 Others 25% Promoters 46% FIIs 10% DIIs 19% 8
Slide 9: Manufacturing plants: Proximity to clients drives agility & efficiency
Manufacturing plants: Proximity to clients drives agility & efficiency Bawal Haridwar & Roorkee MC battery plant Home UPS manufacturing Ahmednagar Shamnagar MC battery plant First Exide plant Auto & Industrial batteries Prantij, Gujarat Nexcharge plant CML, Haldia Taloja Haldia Auto battery (SF) One
Slide 10: R&D focus enables delivery of advanced technical solutions
R&D focus enables delivery of advanced technical solutions Exide R&D Centre, Kolkata Key Highlights Established in 1976 • Launched first M3 level compliant ‘EFB’ battery for emission- controlled vehicles of leading German OEMs • Exide is supplying advanced ISS batteries to country’s largest OEM • In
Slide 11: Automotive Vertical
QEXIDE 7> Automotive Vertical
Slide 12: Comprehensive product portfolio under power-packed brands
Comprehensive product portfolio under 3 power-packed brands PVs CVs Tractors 3-WHs 2WHs Inverter HUPS 12
Slide 13: Wide distribution network ensures excellent customer experience
Wide distribution network ensures excellent customer experience Pan India distribution network ensures faster service Exide Care: Exclusive Exide Outlets to customer 1900+ 70,000+ Exide Care Direct & 650+ Members Outlets Indirect Dealers sales team Exide Batmobile – for ensuring hassle-free 75+ door
Slide 14: Resilient business model enables growth & market share gains
Resilient business model enables to deliver growth & market share gains Domestic markets Exports Double Digit Significantly high sales growth in all double digit verticals in FY22 Sales growth in (despite lockdown) auto exports in FY22 Market share gains Greater Penetration driven by higher than in
Slide 15: Automotive Vertical: Future Business Strategy
Automotive Vertical: Future Business Strategy A B Revenue Operational C Margin Growth Efficiency Expansion • Product Launches in aftermarket segment • Focus on creating • Supply chain • Partnering with OEMs for optimum product transformation project new launches mix – higher share of premium product
Slide 16: Auto volumes likely to see uptick in the demand scenario
Auto volumes likely to see uptick in the demand scenario Auto volumes are exhibiting a gradual recovery post the We are cautiously optimistic about further adverse impact in FY21 due to the coronavirus pandemic improvement in the demand Passenger Vehicles 3.5 3.8 4.0 4.0 3.4 3.7 • Experts estimate a
Slide 17: Aftermarket product launches serving evolving market demand
A Aftermarket product launches serving evolving market demand Exide SF Protubular and Protubular+ Exide ISS batteries for Integra Inverter Batteries the aftermarket segment • First-of-its-kind integrated power • Tall Tubular Technology with back-up system high pressure die-casted plates • After succ
Slide 18: Fostering relationship with OEMs and expanding international footprints
A Fostering relationship with OEMs in the domestic markets and expanding footprints in the international markets Partner of choice by OEMs for their new launches Strong focus on Exports business New Models launched exclusively with Exide Batteries: ➢ Export revenues have doubled in the last 2 years
Slide 19: Enhancing customer engagement through digital initiatives & brand outreach
A Enhancing customer engagement through digital initiatives & brand outreach Sales & customer service powered by digital Interventions Legacy brands with a revamped identity and Analytics Exide Creating synergies • Data Collection and 100% between sub-brands with • Personalized visibility on seconda
Slide 20: Digitizing supply chain & energising distribution network
B Digitizing supply chain & energising distribution network Digitizing supply chain Energising Distribution network Manages the end-to-end supply chain and offers solutions for • Empowering distributors to enhance customer reach production and procurement planning though Direct Sales Representative
Slide 21: Industrial Vertical
QEXIDE 7> Industrial Vertical
Slide 22: Unique and Diverse Portfolio - Serving A wide gamut of industries
Unique and Diverse Portfolio - Serving A wide gamut of industries IUPS→ Solar→ Tr a c t i o n → Te l e c o m → Railways→ Power & Projects → 22
Slide 23: Strong performance delivered despite headwinds from pandemic and inflation
Strong performance delivered despite headwinds from pandemic and inflation Business Highlights 1 Market Leadership #Leading position in the overall Industrial battery space 2 Growth Outperformance High Growth in IUPS, Telecom & Traction verticals, (above relevant markets) 3 Very High Growth in Expor
Slide 24: Focus on building brand presence and enhancing customer connect
Focus on building brand presence and enhancing customer connect Creating Presence… 1 2 3 Foray into Microgrids Digitalizing Building Brand Resonance Customer Journey Material Handling Middle MEE 2021, region’s largest Lead Acid Battery Banks at a Creating new value for our East at Dubai Expo 2021 so
Slide 25: Betting on multiple technologies to address storage market
Betting on multiple technologies to address storage market Hosur ESS Hosur ESS Tata Power DDL Exide CESC BESS CESC Microgrid Gel Based VRLA Lithium Ion Lithium Ion Gel Based VRLA Gel Based VRLA Applications: Applications: Applications: Applications: Applications: Energy Shifting, Energy Shifting, Pe
Slide 26: Industry trends: Opportunities galore as India prepares to take the winning leap
Industry trends: Opportunities galore as India prepares to take the winning leap ‣ Data centre boom1 ‣ India’s ambition - 300GW ‣ Govt. impetus on Infra ‣ 5G rollout and demand for ‣ Rural internet penetration solar by 2030 spending greener infrastructure ‣ Digitalization ‣ Solar PLI scheme to add ‣
Slide 27: Enriched product range across verticals to address industry trends
Enriched product range across verticals to address industry trends YHP Plante ORC Traction Batteries Range Upgraded data centre End-to-End & rooftop Top of the line batteries EHP series batteries solar solutions for standby & traction 27
Slide 28: Strategy framework: Our operating model uniquely positions us to deliver results
Strategy framework: Our operating model uniquely positions us to deliver results Sustained Profitable Growth Guided by our Target Growth Focussed Return Focussed 1 2 3 4 Rooted in our Strategy Revenue Capacity Operational Margin Growth Utilization efficiency Expansion • Debottleneck • Industry 4.0 •
Slide 29: Revenue Growth and Capacity Utilization
By leveraging our industry leading products & strong sales network Revenue Growth Capacity Utilization Customer Outreach & Network Expansion Debottlenecking projects to maximize asset usage Exports as an engine of growth Augment Capacity – Investing in growing Digitalize customer journey markets (Tr
Slide 30: Operational efficiency and Margin Expansion
And anchoring ‘profitability focus’ into everything we do… Operational efficiency Margin Expansion Industry 4.0 – Improve Operational Improve Mix: Focus on aftermarket efficiency (implemented in Hosur) (IUPS & Traction) Automation Projects – To gain Enhance offerings: Premiumization to productivity
Slide 31: New Business: Lithium-ion batteries
1. Grow the Li-ion batteries pack and module business under our brand Nexcharge New Business: Lithium-ion batteries 2. Setting up a Lithium-ion cell manufacturing facility 31
Slide 32: India's annual lithium-ion battery demand expected to reach ~28 GWh by 2025 and ~90 GWh by 2030
India’s annual lithium-ion battery demand expected to reach ~28 GWh by 2025 and ~90 GWh by 2030 Segment Sub-segment 2025 Market Size (GWh) 2030 Market Size (GWh) 2 Wheelers 8.2 27.7 3 Wheelers 0.8 3.2 4 Wheelers 5.3 29.2 Mobility LCV + HC 0.9 3.1 Buses 1.4 4.8 Mobility 16.7 68 DG Set off 0.9 5.1 UPS
Slide 33: Exide has built an early lead in lithium-ion market through pack & module business
Exide has built an early lead in the lithium-ion battery market through pack & module business… Our Headquarters in Prantij, Gujarat Our Facilities in Bengaluru, Karnataka • Nexcharge existing land: 53,261m2 • Facility 1: Offshore R&D center, • Existing built-up area: 9,528m2 Ozone Manay Technology
Slide 34: …which provides energy storage solutions across verticals
…which provides energy storage solutions across verticals Transportation Industrial & Utility Focus Areas Focus Areas Two wheelers: Light Duty, Medium Duty, & Heavy Duty Commercial & Industrial Three Wheelers: E-rickshaw, E-Auto & E-Loader EV Charging Passenger Vehicle and Commercial Vehicle (Buses
Slide 35: …and has 'state-of-the-art' manufacturing facility
…and has ‘state-of-the-art’ manufacturing facility Key features of the facility: • Developed in Switzerland with key controls on Safety and Process • Flexible to handle different variants of cell • All Stations supervised with MES Control Focusing on new technology developments: • In process of desi
Slide 36: Exide is establishing a state-of-the-art lithium-ion cell manufacturing plant
Exide is establishing a state-of-the-art lithium-ion cell manufacturing plant ➢ Wholly owned subsidiary set-up for lithium-ion cell manufacturing Exide Energy Solutions Ltd. ➢ Multi-gigawatt green field project ➢ Manufacturing of advanced chemistry cells (cylindrical, pouch, prismatic) ➢ Manufacturi
Slide 37: Key next steps on the lithium-ion cell manufacturing project
Key next steps on the lithium-ion cell manufacturing project Segment Key next steps • We are in advanced stages of procuring the land parcel for the green-field project in the state Land of Karnataka Technology • Continue jointly working with SVOLT to achieve key milestones across workstreams Projec
Slide 38: Key Financial Highlights
QEXIDE 7> Key Financial Highlights
Slide 39: Impressive revenue growth in Q4FY22, but input costs inflation lowered profitability
Impressive revenue growth in Q4FY22, but input costs inflation lowered profitability Revenues EBITDA Margin Rs.2,939 Cr. Rs.3,409 Cr. 14.0% 10.2% Q4FY21 Q4FY22 Q4FY21 Q4FY22 16% 379bps PBT Margin PAT Margin 11.2% 8.0% 8.3% 5.9% Q4FY21 Q4FY22 Q4FY21 Q4FY22 328bps 238bps Note:Q4FY22 PBT margin and PAT
Slide 40: Robust revenue growth in FY2022, though margins impacted by input cost inflation
Robust revenue growth in FY2022,though margins impacted by input cost inflation Revenues EBITDA Margin Rs.10,041 Cr. Rs.12,382Cr. 13.5% 11.3% FY21 FY22 23% FY21 FY22 223bps PBT Margin PAT Margin 10.1% 8.3% 7.6% 6.2% FY21 FY22 Q4FY21 Q4FY22 185bps 136bps Note: FY22 PBT margin and PAT margin excludes
Slide 41: Consistent financial performance delivered over the years
Consistent financial performance delivered over the years Revenues EBITDA Profit after tax (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) 12,382 1,411 1,396 10,588 1,365 1,356 10,041 9,857 844 1,241 826 9,186 766 758 668 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 • Strategic initiativ
Slide 42: Aim to maximize investor returns through multiple initiatives
Aim to maximize investor returns through multiple initiatives Revenue Operational Improved Dividend Growth efficiency Profitability payment • Product launches • Streamlining • Improving product • Regularly paid in Indian markets supply chain to mix towards dividends to optimise inventory higher marg
Slide 43: Strong Commitment to Sustainability and CSR
Strong Commitment to Sustainability and CSR 43
Slide 44: Committed to drive positive change through sustainable practices
Committed to drive positive change through sustainable practices Strong focus on sustainable business Battery Recycling – an initiative to practices protect the environment 18% green energy consumption in FY22 8% reduction in water intensity per rupee of turnover in FY22 • Chloride Metals is a 100%
Slide 45: CSR initiatives focuses on building equal and inclusive societies
CSR initiatives focuses on building equal and inclusive societies • Focus on 5 key pillars for socio-economic development- • Health and Sanitization • Education • Empowerment • Skill Development • Environment • CSR initiatives aligned to 9 Sustainable Development Goals Impact • More than 0.2 million
Slide 46: Disclaimer
Disclaimer In this document, we have disclosed forward-looking information to enable analysts and investors comprehend our prospects and take investment decisions. This document and other statements–written and oral–that we periodically make, contain forward-looking statements that set out anticipat
Slide 47: THANK YOU!
THANK YOU! Investor Contact Chhavi Agarwal, CFA Head- Investor Relations E-mail: investor.relations@exide.co.in 47