Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q1 FY22 Earnings Presentation
40 slides from Sona Blw Precision Forgings's earnings presentation, Aug 6, 2021
Slide 1: Q1 FY22 Earnings Presentation
Q1 FY22 Earnings Presentation 6 August 2021
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: Today's Speakers
Today’s Speakers 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 MD & Group CEO 3
Slide 4: Contents
Contents Introduction 05 Our Strategic Priorities 13 Q1 FY22 Financial Update 31 Appendix 37 4
Slide 5: Introduction
Introduction Inside view of our manufacturing plant at Manesar, Haryana
Slide 6: One Vision
One Vision To become one of India’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 6
Slide 7: 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) Revenue in INR millions 20,030 FY17– FY22 FY
Slide 8: Guided by Values
Guided by Values 32.8% Agility Growth 5-year Revenue CAGR 27.9% Vitality Margins Integrity 5-year Avg. EBITDA >28% Returns Frugality ROE Each Year (FY17-FY21) 8
Slide 9: Our Value Proposition
Our Value Proposition Sizeable and Increasing We are one of India’s leading Presence in EVs 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 elec
Slide 10: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 20% 967 mn 33% Revenue Share from BEV Q1 FY22 BEV segment revenue BEV revenue QoQ growth 1 of every 8 17 36% CAGR BEV Differential Assemblies BEV Programs awarded across Global BEV Market expected sold globally1 10 customers2 growth CY20-CY253 Notes: 1. As on
Slide 11: Scaled Player with High and Profitable Growth Outlook
Scaled Player with High and Profitable Growth Outlook Our net order book at Rs. 140 billion is 9.1x FY21 revenue EV Rs. 80 Billion (57.1%) Non-EV Rs. 60 Billion (42.9%) 52.5% 4.2% 0.3% 21.6% 16.9% 4.6% # of Programs 8 3 1 15 23 31 # of Customers 5 3 1 9 11 11 PV 2W &3W CV PV CV OHV Note: net order b
Slide 12: Best-in-Class Financial Performance: Q1 FY22 Highlights
Best-in-Class Financial Performance: Q1 FY22 Highlights 5,007 mn | 226% 1,387 mn | 27.7% 822 mn | 16.4% Revenue | YoY Growth EBITDA | Margin PAT | Margin 6.0% 4.6% 35.3% Global Market Share Global Market Share RoCE3 of Differential Gears1 of Starter Motors2 Notes: 1. As per Ricardo report 2. Across
Slide 13: Our Strategic Priorities
Our Strategic Priorities Our net formed differential gears
Slide 14: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 14
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 15
Slide 16: 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., China, Europe High Power Density Final Drive Differential Differential assembly assemblies gears BEV 100-350kw Performance 50-1
Slide 17: Revenue share from BEV has grown 15x over 3 years
Revenue share from BEV has grown 15x over 3 years, with absolute BEV revenue growth at 22x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 19.9% 3,868 13.8% 2,057 2.0% 1.3% 174 234 967 FY19 FY20 FY21 Q1FY22 FY19 FY20 FY21 Q1 FY22 Annualised 17
Slide 18: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 18
Slide 19: Our Global market share continues to increase
Our Global market share continues to increase across Differential Gears & Starter Motors Differential Gears1 CY19 4.5% CY20 5.0% H1 CY21 6.0% Starter Motors1 CY19 2.5% CY20 3.0% H1 CY21 4.6% While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the Indian market for Different
Slide 20: Our Strategic Priorities: Well diversified across categories
Our Strategic Priorities Electrification Global Market Diversification Technology Significance Well diversified across categories Products, Powertrain, Geographies, and Vehicle segments 20
Slide 21: Diversified revenue mix – Product wise
Diversified revenue mix – Product wise FY21 Q1 FY22 Our journey from components to sub- systems in driveline is proceeding well with revenue share of differential assemblies 2.8% 1.3% 2.5% 0.8% increasing from 5.6% in FY20 to 23.5% in Q1 27.8% FY22 19.4% 25.4% 23.8% Our traditional ICE starter motor
Slide 22: Diversified revenue mix – Powertrain wise
Diversified revenue mix – Powertrain wise 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 20.0% in Q1 FY22 FY19 FY20 FY21 Q1 FY22 1% 2% 14% 17% 20% 29% 27% 28% 47% 42% 24% 32%
Slide 23: Diversified revenue mix – Geography wise
Diversified revenue mix – Geography wise FY21 Q1 FY22 Our efforts to increase revenue share from China and Europe are showing visible results, however it is more pronounced this 4.8% 5.1% quarter since 7.6% 26.5% 17.5% 29.2% 1) Chip shortage has impacted our US customers relatively much more than in
Slide 24: Diversified revenue mix – Vehicle segment wise
Diversified revenue mix – Vehicle segment wise Our diversification across vehicle segments is a source of great strength FY21 Q1 FY22 PV Recovery in domestic CV demand, when it 68.4% 68.4% revives, will provide an additional lever for growth in the medium term CV 14.4% 16.4% OHV 17.1% 15.0% 0.1% Oth
Slide 25: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 25
Slide 26: The Two Revolutions in Mobility
The Two Revolutions in Mobility Convenience Safety Convenience Safety • Horses needed time to • Frightened and out-of- • Need for more personal • Per capita deaths due to prepare control horse could time road traffic have create havoc remained stagnant for • Space for stable • Mobility as an end rat
Slide 27: Technology Roadmap
Technology Roadmap End Goal Integrated System High Voltage [Mix and match components; Inverter [250V-800V] Family of P4 e-Axle Units] DC DC Converter GaN Inverter High Voltage Traction Motors Liquid- [250V-800V] cooled Inverter Low Voltage Inverter [48V-96V] Magnet-free and Tripoidal Stator Designs
Slide 28: Development of Magnet-less Motors with IRP of Israel
Development of Magnet-less Motors with IRP of Israel Creating an #AatmaNirbharBharat Story • Target: Powertrain system of 2W/3W EVs for the global markets. • USP: Drive motor without permanent magnets. • Rights: Exclusive rights to manufacture the system in India. The absence of rare earth magnets i
Slide 29: Our commitment towards ESG will continue increasing
Our commitment towards ESG will continue increasing We are defining an ESG framework with Deloitte and will commence formal reporting next year • Partnered with IIM Ahmedabad to build new Environmental Social incubation space for innovators/entrepreneurs and provide mentorship to early-stage start-u
Slide 30: Covid health & safety support for employees and community
During the deadliest phase of Covid, our foremost priority has been to ensure the health & safety of our employees & the community Free Medical Food Support Vaccination equipment distribution We provided free We supplied 20 We distributed We extended our vaccination for all ventilators (BiPAPs) and
Slide 31: Q1 FY22 Financial Update
Q1 FY22 Financial Update Our armature used in starter motors
Slide 32: Q1 FY22 Financial Update: Revenue
Q1 FY22 Financial Update Revenue (Rs. million) 5,007 o Q1 FY22 revenue higher by 226% YoY due to: YoY: 226% 1,534 • Growth of 565% in EV revenue • Lockdown impact in the comparable quarter last year Q1 FY21 Q1 FY22 20,030 15,663 YoY: 28% o Q1 FY22 annualised revenue higher by 28% over full year reve
Slide 33: Q1 FY22 Financial Update: EBITDA
Q1 FY22 Financial Update Earnings Before Interest, Tax, Depreciation and Amortizations (EBITDA) EBITDA (Rs. mn) Margin (%) o Q1 FY22 EBITDA higher by 375% YoY due to: 1,387 • Growth of 565% in EV revenue YoY: 375% • Lockdown impact in comparable quarter last year 27.7% o EBITDA margin also improved
Slide 34: Q1 FY22 Financial Update: Profit After Tax
Q1 FY22 Financial Update Profit After Tax (PAT) Reported PAT (Rs. mn) Reported PAT Margin (%) Reported PAT 822 o Q1 FY22 PAT higher at Rs. 822 mn compared to nil in comparable 16.4% quarter last year because of lockdown impact YoY: NA o In Q1 FY22 there is Rs. 132 mn of exceptional gain related to 0
Slide 35: Q4 FY21 Vs. Q1 FY22
Q1 FY22 Financial Update Q4 FY21 Vs. Q1 FY22 Revenue (Rs. mn) BEV Revenue (Rs. mn) EBITDA (Rs. mn) Adj. PAT (Rs. mn) 5,393 EBITDA Margin (%) Adj. PAT Margin (%) 5,007 967 1,401 1,387 723 701 730 26.0% 27.7% 13.0% 14.4% Q4 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Q4 FY21 Q1 FY22 Q4 FY21 Q1 FY22 QoQ: (7%) QoQ: 33
Slide 36: Key Ratios
Q1 FY22 Financial Update Key Ratios VA/Employee cost RoCE (%) RoE (%) 5.1 5.2 5.4 34.8% 35.3% 35.2% 36.4% 33.5% 29.0% FY20 FY21 Q1 FY22 FY20 FY21 Q1 FY22 FY20 FY21 Q1 FY22 Annualised Annualised Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 0.77 3.9 3.9 3.6 3.7 4.3 3.1 0.43 0.02 FY
Slide 37: Appendix
Appendix State-of-the-art in-house tool and die shop at Gurugram, Haryana
Slide 38: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally 6 of the world’s top 10 PV OEMs 3 of the world’s top 10 CV OEMs Sweden Belgium 7 of the world’s top 8 tractor OEMs Germany USA China Mexico India 6 3 5 9 3 1 8 1 Manufacturing R&D Tool & Warehouse Sales Office Plant Centre Die Shop 38
Slide 39: Q&A
Q&A Net formed differential gears coming out of our forging press
Slide 40: Thank you
Thank you Our final drive gears
Sona BLW Precision Forgings — Q1 FY22 Earnings Presentation on 6ix