Slide 1: Exchange filing cover letter: Investor Presentation
August 17, 2023 BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai - 400001. Mumbai – 400051. Scrip ID: KPITTECH Symbol: KPITTECH Scrip Code: 542651 Series: EQ Kind Attn: The Manager, Ki
Slide 2: Global Mobility Trends and Outlook
Global Mobility Trends and Outlook 17th Aug. 2023 Kishor Patil, Co-founder and CEO, KPIT Technologies Limited Reimagining Mobility with YOU 8/17/2023 1
Slide 3: Content of the presentation
Content of the presentation 2 1. 2. 3. Global Mobility Technology Automotive Trends enablers for Software spend Automotive 4. 5. 6. OEMs commitment Rise of Electric, Autonomous and Growing markets towards SDV Connected vehicles KPIT, a leading 7. independent Software Integration partner to OEMs 8/17
Slide 4: Mobility Trends shaping the Industry
Mobility Trends shaping the Industry Boosted by With CASE & CASE trend, Software in OEMs continue investing functions in vehicle rising, Rise of SDVs heavily in R&D key domains role of will bring to sustain continue software paradigm shift competitive getting integration for OEMs advantage complex a
Slide 5: Shift towards Software Defined Vehicles
Shift towards Software Defined Vehicles CV OEMs Mass-Production OEMs Leader Premium OEMs Leader Software defined 1 2 3 4 Distributed E/E Partial Consolidation of Domain centralized E/E Centralized HPC architecture with E/E architecture, L2 architecture, platform, L4+ ADAS minimum connectivity ADAS f
Slide 6: OEMs will transition to SDVs by 2030
OEMs will transition to SDVs by 2030 By 2026-2027 By 2030 & beyond Allocating 25-30% of their R&D Focus on connected services, Transition to central zonal budget to software to gain feature on demand and MaaS architectures from 2027 market share, diversify revenue as part of monetization onwards and
Slide 7: Technology enablers for Automotive
Technology enablers for Automotive Disruptive Technologies with high R&D focus Electrification and Energy Management Autonomous Driving Rise of Connected Vehicle Demand for Feature on demand (payment, music, location, comfort features) OEMs and ecosystem will continue to invest in these technologies
Slide 8: Automotive SW market is set to demonstrate high growth
Automotive SW market is set to demonstrate high growth A solid strong potential in range of $83 bn purely in automotive SW driven by autonomous and connected vehicles Source: McKinsey (Jan’23) 8/17/2023 7
Slide 9: Long term commitment by OEMs on SW spend
Long term commitment by OEMs on SW spend Targeting 100bn JPY operating profits from software related business in 2030. Software business will turn profitable in 2028 Achieving 30% revenue with software business by 2030. Software businesses include Mobility, Connectivity and Data business. Most of ke
Slide 10: Growth Opportunities (2020-2030)
Growth Opportunities (2020-2030) Spending by OEMs in traditional areas will come down as compared to in Electric, Autonomous and Connected Vehicles Source: EY and Goldman Sachs 8/17/2023 9
Slide 11: Rise in EV sales – Indication of increased electrification
Rise in EV sales – Indication of increased electrification Increase in sales of EVs highlights the increasing penetration of EVs globally. Source: Pwc report 8/17/2023 10 WE – Western Europe
Slide 12: Big revenue potential from Autonomous Vehicles
Big revenue potential from Autonomous Vehicles Passenger Cars installed with L3+ AD functions could rise to 17%+ by 2035. Source: McKinsey (Jan’23) 8/17/2023 11
Slide 13: Connected vehicles can offer incremental value to OEMs
Connected vehicles can offer incremental value ($) to OEMs through cloud analytics & data driven services By 2030, about 95 percent of new vehicles sold globally will be connected, around 45 percent of these vehicles will have intermediate and advanced connectivity Source: McKinsey 8/17/2023 12
Slide 14: Growing markets - Indian Automobile Industry (1/2)
Growing markets - Indian Automobile Industry (1/2) India is the third-largest automotive market in the world (by domestic sales) In FY23, total passenger vehicle sales reached 3.89 million In FY23, total automobile exports from India stood at 47,61,487. EVs set to drive the industry (Increas
Slide 15: Growing markets - Chinese Automobile Industry (2/2)
Growing markets - Chinese Automobile Industry (2/2) World’s largest vehicle market by both annual sales and manufacturing output Domestic production of China expected to reach 35 million vehicles by 2025 China’s EV sales rose by 35.2% year on year to 806,000 units in June It is the highest s
Slide 16: KPIT, a leading independent Software Integration partner to OEMs
KPIT, a leading independent Software Integration partner to OEMs
Slide 17: Independent software integration partner bringing scale and dependability
10+ 500+ Mn vehicles Production on road with programs KPIT software experience Independent software integration partner 25+ 75+ platforms, bringing scale and OEM/Tier-1’s count us as tools & accelerators dependability strategic partners to build and integrate software features to accelerate the jour
Slide 18: Our recent technology partnerships
Our recent technology partnerships KPIT to accelerate Honda’s Renault Group selects KPIT as a KPIT & ZF join hands to transformation towards strategic technology partner for promote an independent Software-Defined Mobility next generation Software- company “QORIX” Defined Vehicle (SDV) program The p
Slide 19: Recent acquisitions to strengthen our offerings in this area
Recent acquisitions to strengthen our offerings in this area Future Mobility PathPartner SOMIT solutions Technica Solutions (FMS Technology Engineering Gmbh) FMS group PathPartner SOMIT Solutions’ KPIT’s extensive strengthens KPITs strengthens software cloud-based platform software expertise gets of
Slide 20: Summary
Summary 1. Tremendous opportunities ahead in Automotive Software market on account of transition towards Software Defined vehicle 2. Automotive Software market is set to rise at a CAGR of 9%+ bringing huge potential of ~$83 bn by 2030 3. OEMs have committed larger part of their R&D spend on software
Slide 21: Thank You!
Thank You!