Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Investor Presentation (April 2010)
23 slides from Bharat Forge's investor presentation, April 2010
Slide 1: Investor Presentation
, BHARAT FORGE Ww KALYANI INVESTOR PRESENTATION
Slide 2: Bharat Forge – A Leading Global Forging Company
Bharat Forge – A Leading Global Forging Company Auto Sector Revival – Bharat Forge Well-Positioned Non-Auto Sector – Emerging Growth Platform Financial Performance – Strong Revival Post The Downturn Conclusion 1
Slide 3: Bharat Forge Limited (BFL) - A Global Forging Company
Bharat Forge Limited (BFL) - A Global Forging Company Bharat Forge: Profile Global Forging Conglomerate Geography Capacity (MTPA) FY09 Consolidated Revenues: ~ US$1.1 bn. 11 Manufacturing locations across 5 countries. 365,000 Global Marquee Customer base of more than 35 OEM’s & Tier- 1 companies acr
Slide 4: Auto Sector Revival – Bharat Forge Well-Positioned
Bharat Forge – A Leading Global Forging Company Auto Sector Revival – Bharat Forge Well-Positioned Non-Auto Sector – Emerging Growth Platform Financial Performance – Strong Revival Post The Downturn Conclusion 3
Slide 5: Recent Pick up in Domestic CV Market Expected To Continue
Recent Pick up in Domestic CV Market Expected To Continue Month on Month Domestic CV Production Picking Up (units) 30,000 27,372 25,717 25,973 25,000 23,502 21,377 23,384 21,117 21,496 20,626 21,445 20,395 20,000 17,804 16,999 16,487 16,072 14,336 15,000 12,999 13,021 12,082 10,000 7,701 4,986 5,800
Slide 6: US Automotive Market
US Automotive Market Figures in ‘000 North American Class 8 Production North American Class 8 Production 400 376 339 80 300 269 58 253 50 52 47 212 205 60 200 142 28 30 33 116 40 25 100 20 0 - 2004 2005 2006 2007 2008 2009 2010 E 2011E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CY 2008 CY 2009 • BFL has a significant
Slide 7: European Automotive Market
European Automotive Market Figures in ‘000 Commercial Vehicle Production 250 199 190 200 176 156 163 150 151 158 150 100 67 70 54 54 50 - CY 2007 CY 2008 CY 2009 Q1 Q2 Q3 Q4 • Commercial vehicle production in CY 2009 was 245,000 units, a drop of 64% as against CY 2008 levels. • The industry witnesse
Slide 8: Outlook for Key Automotive Markets
Outlook for Key Automotive Markets Particulars Growth of 22.9% for CV sector volumes fell by Class 8 truck volumes were down M& HCV sector YTD FY about 50% in CY 2009. close to 70% compared to peak levels 2010 over corresponding (source: ACEA) of CY 2006. period. (source: SIAM) Volumes are expected
Slide 9: Capacity Utilization: Headroom for Growth in Auto Segment
Capacity Utilization: Headroom for Growth in Auto Segment • Robust financial performance even at low levels of capacity utilization • Enough headroom to reach previous peak utilization levels on the back of improvement in domestic CV markets & revival in US & Europe. 8
Slide 10: Non-Auto Sector – Emerging Growth Platform
Bharat Forge – A Leading Global Forging Company Auto Sector Revival – Bharat Forge Well-Positioned Non-Auto Sector – Emerging Growth Platform Financial Performance – Strong Revival Post The Downturn Conclusion 9
Slide 11: Expanding the Horizon – Focus on Non Automotive Infrastructure Supply Business
Expanding the Horizon – Focus on Non Automotive Energy Oil & Gas Aerospace Windmill shafts, gas engine Structural & rotating components Valve bodies, bonnets, choke components bodies, composite blocks Marine Railways Construction & Mining Engine components, GETs Engine components Engine components,
Slide 12: Advanced New Non-Auto Capacity has been commissioned
Advanced New Non-Auto Capacity has been commissioned Total Outlay: Rs 500 crores since FY 2008 Facilities Products & Industries Product Dimensions Heavy Forge Division II – Wind turbine components. Max Ingot weight upto 70T 4,000 MT Press & Machining Hydro, gas & steam turbine single piece Capacity
Slide 13: Power Sector: Opportunity Size
Power Power Sector: Sector: Opportunity Opportunity Size Size 1000 MW Power Plant 100% Turbine Generator: Boiler: BOP: EPC: 27-28% 28-29% 27-28% 17-18% Joint Ventures Focus Area Capacity Alstom - JV 1 Turbine Generator 5,000 MW Alstom – JV 2 Auxiliaries NTPC BOP 4,000 MW BFL will see additional bene
Slide 14: Select Non Auto Product Portfolio
Select Non Auto Product Portfolio 13 Import substitution of critical part for power sector
Slide 15: Select Non Auto Product Portfolio
Select Non Auto Product Portfolio Crankshaft for locomotive Length: 3.95 m Approx. Weight : 2.1 tons 14
Slide 16: Indian Power Sector
Bharat Forge – A Leading Global Forging Company Auto Sector Revival – Bharat Forge Well-Positioned Non-Auto Sector – Emerging Growth Platform Indian Power Sector Financial Performance – Strong Revival Post The Downturn Conclusion 15
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance Strong Historic Consolidated Revenue Growth (Rs. million) Consolidated EBITDA * (Rs. million) 1 US$ - Rs 41 India Overseas 17.3% 16.5% 12.9% 19.1% 7,826 30,812 34,277 37,378 5,907 19.1% 7,388 6,251 21,096 9,755 11,940 13,239 11,049 FY06 FY07 FY08 FY09 FY06 FY07 FY0
Slide 18: Unconsolidated Financial Performance
Unconsolidated Financial Performance Strong Historic Standalone Revenue Growth (Rs. million) Standalone EBITDA * (Rs. million)1 US$ - Rs 41 Domestic Exports 28.1% 25.6% 27.2% 23.4% 24.2% 9,610 5,845 7,513 10,014 19.1% 5,460 8,822 4,938 24.1% 6,555 4,432 4,358 4,912 3,167 11,940 13,239 9,755 11,049 9
Slide 19: Recovery in Unconsolidated Financial Performance On a Sequential Basis
Recovery in Unconsolidated Financial Performance On a Sequential Basis Tonnage (MT) Total Revenues(1) (Rs. mm) 40,000 16% 6,000 19% 37% 35,000 21% 42% 5,000 19% 36% 19% 30,000 1,998 4,000 25,000 1,487 26% 3,000 20,000 1,427 24% * 35,283 1,192 15,000 30,428 2,000 22,145 2,848 3,171 10,000 18,246 1,00
Slide 20: Historic Financial Performance
Historic Financial Performance Unconsolidated Consolidated FY 2010 FY 2009 Rs Million FY2007 FY2008 FY2009 9 Months 9 Months FY2007 FY2008 FY2009 Total Income 19,453 22,849 21,064 13,143 17,995 42,752 47,516 48,427 EBITDA 5,460 5,845 4,938 3,167 4,358 7,388 7,826 6,251 PBT before excp item & Ex. Gai
Slide 21: Conclusion
Bharat Forge – A Leading Global Forging Company Auto Sector Revival – Bharat Forge Well-Positioned Non-Auto Sector – Emerging Growth Platform Indian Power Sector Financial Performance – Strong Revival Post The Downturn Conclusion 20
Slide 22: Key Growth Drivers
Key Growth Drivers Auto Riding on strong growth in domestic market. Strong relationships with global OEMs due to global presence and full service capability. De-integration of OEM facilities to result in greater offshoring. Well positioned to increase market share from global OEMs due to ‘supplier c
Slide 23: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning our 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 statements. The ris