Schaeffler India Ltd · NSE:SCHAEFFLER
Schaeffler India — Q4 2023 Earnings Presentation
22 slides from Schaeffler India's earnings presentation, Feb 19, 2024
Slide 1: Regulation 30 filing cover letter to stock exchanges
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 Sub: Investor Presen
Slide 2: Schaeffler India Limited Investor Presentation – Q4 and CY 2023
Schaeffler India Limited Investor Presentation – Q4 and CY 2023 February 19, 2024 PUBLIC
Slide 3: Agenda
Agenda 1 Economy & Industry 2 2 Business Highlights - Q4 and 12M 2023 7 3 Financial Highlights - Q4 and 12M 2023 10 4 Stakeholder Value Creation 16 Schaeffler India Limited | Q4 and 12M 2023 Investor Presentation PUBLIC
Slide 4: Economy | Fundamentals remain strong
1 2 Economy & Industry Market Economy | Fundamentals remain strong GDP 1) 3) 13.1 IIP 1) 3) Key comments 12.8 • Q3 GDP at growth at 7.6%, on growth 7.8 path supported by moderating inflation 7.6 6.2 6.1 7.3 driven by domestic demand 6.0 4.0 4.5 4.1 4.4 • IIP growth in 2023 due to healthy run of 1.8
Slide 5: Core sector performance | Remains robust for the year
1 Economy & Industry Core sector performance | Remains robust for the year 2022 2023 YTD CY2023 Growth Key comments Cement Production (mn T) 7.5% Steel Production (mn T) 13.3% Core industry growth for CY23 registered at 7.9% compared to 7.4% for the same 37 36 37 36 37 35 13 13 13 12 12 12 12 12 13
Slide 6: Automotive sector performance | Steady Growth
1 Economy & Industry Automotive sector performance | Steady Growth 2022 2023 YTD CY2023 Growth Two and three wheelers (mn Units) 1) 4.5% Passenger Vehicles (Th Units) 2) 7.9% 2.2 2.1 1.92.0 2.1 1.8 1.9 1.9 425 406 442 420 413419 434 • 2W sector demand from domestic 1.8 1.8 390 379 401 379 1.6 1.61.6
Slide 7: Interim Budget 2024 – Key Features
1 Economy & Industry Interim Budget 2024 – Key Features Budget Allocation Strategic Focus Areas for Amrit Kaal Fiscal Deficit Target for FY25 at 5.1 percent of the GDP Capital Expenditure At ₹11.1 lakh crore, increased by 11.1 percent Green Energy Measures Towards meeting the commitment to ‘net zero
Slide 8: Business Highlights - Q4 and 12M 2023
Agenda 1 Economy & Industry 2 2 Business Highlights - Q4 and 12M 2023 7 3 Financial Highlights - Q4 and 12M 2023 10 4 Stakeholder Value Creation 16 Schaeffler India Limited | Q4 and 12M 2023 Investor Presentation PUBLIC
Slide 9: Q4 2023 | Sustained domestic performance
2 Business Highlights - Q4 and 12M 2023 Q4 2023 | Sustained domestic performance Key Messages Sales growth EBIT 1) margin New business wins in select sectors and balanced business portfolio 3.4% vs Q4’22 14.9% Q4’23 helped sustain performance for the quarter 0.4% vs Q3’23 15.9% Q3’23 Board of Direct
Slide 10: Q4 Business developments | Trajectory continues
2 Business Highlights - Q4 and 12M 2023 Q4 Business developments | Trajectory continues Automotive Technologies Automotive Aftermarket Industrial Reliability and emission reduction Increased market coverage Precision and Efficiency 1 Business wins in PVs1) for valve train 1 Business wins continue fo
Slide 11: Financial Highlights - Q4 and 12M 2023
Agenda 1 Economy & Industry 2 2 Business Highlights - Q4 and 12M 2023 7 3 Financial Highlights - Q4 and 12M 2023 10 4 Stakeholder Value Creation 16 Schaeffler India Limited | Q4 and 12M 2023 Investor Presentation PUBLIC
Slide 12: Revenue from operations | Domestic business continues to grow
3 Financial Highlights - Q4 and 12M 2023 Revenue from operations | Domestic business continues to grow Total revenue Key aspects mn INR 18,291 18,483 18,551 • YoY growth momentum in domestic business continues 16,936 15,675 17,488 17,564 17,947 • Adverse sales mix, due to slowdown in exports Growth
Slide 13: Earnings Quality | Sustained performance
3 Financial Highlights - Q4 and 12M 2023 Earnings Quality | Sustained performance EBIT1) Key aspects mn INR 2,741 2,756 2,913 2,706 2,941 2,933 2,757 2,602 • Sustained quality of earnings for the year on the back of efficient 1,806 utilization of resources and productivity measures Q1CY22 Q2CY22 Q3C
Slide 14: Working capital, Capex | Focused and effective management
3 Financial Highlights - Q4 and 12M 2023 Working capital, Capex | Focused and effective management Working Capital 2022 2023 Key aspects mn INR 13,283 12,955 12,526 10,101 13,076 • Working Capital – continues to be optimal levels 12,101 11,413 9,869 • Capex framework – trajectory of investments cont
Slide 15: Performance Indicators
3 Financial Highlights - Q4 and 12M 2023 Performance Indicators Unit Q4 2023 Q3 2023 Q4 2022 12M 2023 12M 2022 Revenue mn INR 18,551 18,483 17,947 72,261 68,674 Revenue growth (YoY) % 3.4% 5.2% 17.8% 5.2% 23.5% Revenue growth (QoQ) % 0.4% 1.0% 2.2% - - EBITDA mn INR 3,328 3,490 3,443 13,528 13,076 E
Slide 16: Schaeffler India Limited – Consolidated Financial Results
3 Financial Highlights - Q4 and 12M 2023 Schaeffler India Limited – Consolidated Financial Results • Seamless integration Schaeffler India KRSV Innovative Schaeffler India Limited Auto Solutions Limited Particulars (mn INR) Standalone Pvt. Limited Consolidated • Financial statements for Q4 2023 Q4 2
Slide 17: Stakeholder Value Creation
Agenda 1 Economy & Industry 2 2 Business Highlights - Q4 and 12M 2023 7 3 Financial Highlights - Q4 and 12M 2023 10 4 Stakeholder Value Creation 16 Schaeffler India Limited | Q4 and 12M 2023 Investor Presentation PUBLIC
Slide 18: Dividend payout | Consistent approach to value creation
4 Stakeholder Value Creation Dividend payout | Consistent approach to value creation Dividend per share (INR) Target dividend payout ratio, 30% to 50% 8% of net income* 26 24 16 7 8 • The Board of Directors of the Company has recommended a 6 dividend for the year ended December 31 2023, at the rate
Slide 19: Social Innovator Fellowship Program 2023 - Enabling Young Innovators
4 Stakeholder Value Creation Schaeffler India Social Innovator fellowship Program 2023 - Enabling Young Innovators 260 Total Applications Received 130 Fulfilled Eligibility Criteria 45 Shortlisted Candidates 30 Final Interview 10 Selected Application of Technology | Carbon Neutrality | Circular Econ
Slide 20: In Summary
4 Stakeholder Value Creation In Summary Domestic business continues to deliver, business wins across 1 sectors aided performance 2 Slowdown in exports owing to global demand conditions continues Strong basis to further Sustained quality of earnings on the back of countermeasures building the leading
Slide 21: Disclaimer
4 Stakeholder Value Creation 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
Slide 22: Thank you
4 Stakeholder Value Creation Thank you Schaeffler India Limited | Q4 and 12M 2023 Investor Presentation PUBLIC