Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Non-Deal Roadshow (March 2023)
30 slides from Bharat Forge's roadshow presentation, Mar 27, 2023
Slide 1: Investor Presentation: Asia Non Deal Roadshow
INVESTOR PRESENTATION ASIA NON DEAL ROADSHOW 27 – 29 MARCH 2023
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: Bharat Forge at a Glance
Bharat Forge at a Glance… 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 (OD) s
Slide 4: 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 5: 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 5
Slide 6: The Past Decade: Financial Performance
The Past decade: Financial performance 6
Slide 7: The Past Decade: Story of Two Halves
The Past Decade: story of two halves Figures in Rs Million 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
Slide 8: 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 9: Sustained Uptrend in Profitability
Sustained uptrend in Profitability EBITDA/ KG & EBITDA %* 80 30.0% 76 28.4% 27.3% 27.2% 26.9% 70 26.3% 24.6% 64 25.0% 60 22.9% 59 58 58 22.4% 20.8% 20.3% 51 20.0% 50 46 45 17.6% 40 38 38 39 15.0% 30 10.0% 20 5.0% 10 - 0.0% FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 * EBITDA% h
Slide 10: Solid B/S Creation and Strong Core ROCE
…. Solid B/S creation and strong core ROCE All amounts in Rs crores 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 10
Slide 11: Kalyani Strategic Systems Limited – Defence Business
Kalyani Strategic Systems Limited – Defence Business Making In India for the world 11
Slide 12: Defence Business Line – Time Lapse
Defence Business Line – Time Lapse • EW Systems • Umanned Systems • CIWS Trials completed Sucessfuly • First Large Artillery Export Order • ATAGS Trials completed Sucessfully • MArG – TC20 – 4X4 Developed • Armoured Vehicles • Start of KM4 deliveries • Garuda 105_v2 Developed • Start of TC-6 deliver
Slide 13: 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 • C4ISR Systems • Protected
Slide 14: Global Aluminium Strategy
Global Aluminium Strategy 14
Slide 15: 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 16: 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 17: 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 18: E-Mobility: Probable Impact & Growth Strategy
E – Mobility: probable Impact & Growth strategy 18
Slide 19: 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 20: 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 21: 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 Power Electronics Traction / Drivetrain Energy Storage Mechanical (Light Weighting) Battery Auxiliary PMSM B
Slide 22: KPTL: E-Mobility Business Verticals
KPTL: E-Mobility 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 Motors) * White
Slide 23: KPTL: E-Mobility Business Update: TORK Motors
KPTL: E-Mobility Business update: TORK Motors ✓ 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 1M+ KM ✓ Dealers appointed in Hyderabad; Bangalore & Chennai ✓ Successful launch of Kr
Slide 24: KPTL: E-Mobility Business Update: CV Re-Powering
KPTL: E-Mobility Business update: CV Re-Powering ✓ 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. 47K+km as on date ✓ 2 vehicle platforms and 3 model variants and end use application
Slide 25: KPTL: E-Mobility Business Update: Electronic Components
KPTL: E-Mobility Business update: Electronic Components business 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 filed on Architecture USP: CCS2 Charg
Slide 26: India Industrial Journey: Inorganic Approach
India Industrial Journey: Inorganic Approach 26
Slide 27: Overview: SFEL
Overview: SFEL ▪ SFEL is leading forging company based in Vadodara, Gujarat. Acquired by BFL through the IBC process in June 2021. ▪ SFEL is supplying forgings to OEMs and customers belongs to core sectors such as Oil & Gas, Hydro, Power, Space, Defence, Steel Making, Equipment Manufacturer etc. ▪ 4
Slide 28: 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 29: Vision 2030: Gradual Transition from Tonnage to Technology
Vision 2030: Gradual transition from Tonnage to Technology FY 2022 FY 2030 Steel components Al components E-Mobility Defence systems Castings
Slide 30: Let's outdo the future, together!
Let's o u t d o the future, together! 30