Slide 1: Investor Presentation – Q4 and 12M 2022
Schaeffler India Limited Investor Presentation – Q4 and 12M 2022 February 17, 2023 PUBLIC
Slide 2: Agenda
Agenda 1 Economy & Industry 2 2 Business Highlights Q4 and 12M 2022 7 3 Financial Highlights Q4 and 12M 2022 10 4 Stakeholder value creation 15 2/17/2023 Schaeffler India Limited | Q4 and 12M 2022 Investor Presentation 2 PUBLIC
Slide 3: Economy | Economic growth eases
1 2 Economy & Industry Market Economy | Economic growth eases 2020 2021 CY2022 Growth GDP 1) 3) 7.7% IIP 1) 3) 4.5% • CY2022 GDP is expected to grow by 6.6% 44.4 20.1 • YTD Nov growth for mining, manufacturing, & electricity stands at 13.5 4.5%, 4.0%, and 8.2% respectively 8.4 12.8 • CY2022 automoti
Slide 4: Core sector performance | Moderate movement
1 Economy & Industry Core sector performance | Moderate movement 2020 2021 CY2022 Growth Key comments Cement Production (mn T) 10.1% Steel Production (mn T) 6.6% Overall core sector index performance for CY22 is 7.2% compared to the same 38 period previous year 34 32 34 35 12 32 32 31 11 11 11 11 30
Slide 5: Automotive sector performance | Robust demand in PVs & CVs
1 Economy & Industry Automotive sector performance | Robust demand in PVs & CVs 2020 2021 CY2022 Growth Two and three wheelers (mn Units) 1) 3.5% Passenger Vehicles (Th Units) 2) 21.5% • Growth in PVs on the back of easing 1.9 2.1 pandemic related challenges and 1.8 1.9 413 1.7 1.8 1.9 2.0 1.7 367 4
Slide 6: Union Budget | Key Highlights
1 Economy & Industry Union Budget | Key Highlights Total expenditure of INR 45 trillion 1. Real GDP growth of 6.5% and nominal growth of 10.5% for FY24 7 Priorities of budget 2023-24 Economy Real GDP growth of 6.5% and nominal growth of 10.5% for FY’24 2. Capital investment outlay increased by 33% t
Slide 7: Business Highlights Q4 and 12M 2022
Agenda 1 Economy & Industry 2 2 Business Highlights Q4 and 12M 2022 7 3 Financial Highlights Q4 and 12M 2022 10 4 Stakeholder value creation 15 2/17/2023 Schaeffler India Limited | Q4 and 12M 2022 Investor Presentation 7 PUBLIC
Slide 8: Q4 2022 | Sustained performance with strong quality of earnings
2 Business Q4 / 12MHighlights Q4 and 12M 2022 2021 Performance Q4 2022 | Sustained performance with strong quality of earnings Key Messages Sales growth EBIT 1) margin Resilient performance across our balanced business portfolio 17.8% vs Q4’21 16.2% Q4’22 Business wins in both Automotive and Industr
Slide 9: Q4 Business developments | Wins in e-mobility
2 Business Q4 / 12MHighlights Q4 and 12M 2022 2021 Performance Q4 Business developments | Wins in e-mobility Automotive Technologies Automotive Aftermarket Industrial Reliability and emission reduction Increased market coverage Precision and Efficiency Volume wins for our recently launched New busin
Slide 10: Financial Highlights Q4 and 12M 2022
Agenda 1 Economy & Industry 2 2 Business Highlights Q4 and 12M 2022 7 3 Financial Highlights Q4 and 12M 2022 10 4 Stakeholder value creation 15 2/17/2023 Schaeffler India Limited | Q4 and 12M 2022 Investor Presentation 10 PUBLIC
Slide 11: Revenue from operations | Growth momentum continues
3 Financial Highlights Q4 and 12M 2022 Revenue from operations | Growth momentum continues Total revenue Key aspects mn INR 17,488 17,564 17,947 • YoY growth on the back of exports and sustained domestic performance 15,675 • Strong CY 2022 performance across businesses, aided by accelerated 14,876 1
Slide 12: Earnings Quality | Robust performance
3 Financial Highlights Q4 and 12M 2022 Earnings Quality | Robust performance EBIT1) Key aspects mn INR 2,741 2,756 2,913 2,451 2,602 • Improved YoY performance due to better sales mix and sustained 2,216 1,806 1,708 1,604 countermeasures • Significant improvement in CY 2022, aided by sales mix, volu
Slide 13: Working capital, Capex | Significant improvement
3 Financial Highlights Q4 and 12M 2022 Working capital, Capex | Significant improvement Working Capital 2021 2022 Key aspects mn INR 12,526 12,932 11,413 11,451 8,713 10,101 9,869 • Working Capital levels improved, focused efforts on inventory 6,485 management and receivables • Capex framework – eff
Slide 14: Performance Indicators
3 2 Financial Q4 / 12MHighlights Q4 and 12M 2022 2021 Performance Performance Indicators Unit Q4 2022 Q3 2022 Q4 2021 12M 2022 12M 2021 Revenue mn INR 17,947 17,564 15,232 68,674 55,605 Revenue growth (YoY) % 17.8% 18.1% 19.6% 23.5% 47.8% Revenue growth (QoQ) % 2.2% 0.4% 2.4% EBITDA mn INR 3,443 3,2
Slide 15: Stakeholder value creation
Agenda 1 Economy & Industry 2 2 Business Highlights Q4 and 12M 2022 7 3 Financial Highlights Q4 and 12M 2022 10 4 Stakeholder value creation 15 2/17/2023 Schaeffler India Limited | Q4 and 12M 2022 Investor Presentation 15 PUBLIC
Slide 16: Schaeffler Group ESG Targets | Clear commitment to sustainability
4 Stakeholder value creation Schaeffler Group ESG Targets | Clear commitment to sustainability Climate Neutral Supply Chain Climate neutral supply chain until 2040 Climate Neutral Production Sustainable Suppliers At all Schaeffler production locations until 2030 90% of the purchasing volume of produ
Slide 17: Schaeffler India ESG Targets | Clear commitment to sustainability
4 Stakeholder value creation Schaeffler India ESG Targets | Clear commitment to sustainability Climate Neutral Supply Chain Climate neutral supply chain until 2040 Climate Neutral Production Sustainable Suppliers At all Schaeffler production locations until 2030 90% of the purchasing volume of produ
Slide 18: Jal Sahara | CSR Impact Award
4 Stakeholder value creation Jal Sahara | CSR Impact Award CSR Award Capacity building of Community Soil And Sustainability Water fund & Conservation Convergence Measures Water Security and Sustainable livelihood Development Livelihood Water Storage Generation for Landless Measures Impact Enhanced A
Slide 19: 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% 50% of net income* 24 16 7 8 • The Board of Directors of the Company has recommended a 6 dividend for the year ended December 31 2022, at the rate of
Slide 20: In Summary
4 Stakeholder value creation In Summary Strong performance for the year aided by broad based growth 1 across businesses and accelerated growth in exports • We remain committed to 2 Margins supported by increased volumes, sales mix and sustained our strategic roadmap of countermeasures realizing our
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 2/17/2023 Schaeffler India Limited | Q4 and 12M 2022 Investor Presentation 22 PUBLIC