Zf Commercial Vehicle Control Systems India Limited · NSE:ZFCVINDIA
Zf Commercial Vehicle Control Systems India — Investor Presentation (November 2024)
41 slides from Zf Commercial Vehicle Control Systems India's investor presentation, Nov 12, 2024
Slide 1: Regulation 30 Investor Meet Presentation cover letter
Commercial Vehicle Solutions Department Finance From Muthulakshmi M ZF Group · ZF Commercial Vehicle Control Systems India Limited, Chennai 600058 Phone +91 044-4224 2000 Email muthulakshmi.m@zf.com Date November 12, 2024 The Manager Listing Department BSE Limited, Phiroze Jeejeebhoy Towers Scrip co
Slide 2: ZF Commercial Vehicle Control Systems India Limited
ZF Commercial Vehicle Control Systems India Limited November 2024
Slide 3: Today's Presenters
Today’s Presenters Periakaruppa Kaniappan Sweta Agarwal MD & CEO CFO © ZF Friedrichshafen AG 2
Slide 4: About ZF Group
01 About ZF Group ZF confidential
Slide 5: ZF: A Global Technology Company & Solutions Provider
ZF : A Global Technology Company & Solutions Provider ZF is among the leading global technology groups and supplies advanced mobility products & systems for passenger cars, commercial vehicles and industrial technology. The company is a frontrunner in contributing to reducing emissions, protecting t
Slide 6: ZF's Leading Presence Globally
ZF’s Leading Presence Globally Enables to Provide a Dense Network of Highly Qualified Contacts Close to Customers Key Highlights India(3) 2023A Europe Locations(1) 18 Locations(1) 75 Employees 15,400 Employees 95,725 Sales in €mn 1,092 Sales in €mn 20,289 74% 18% 8% Construction and Cars and light a
Slide 7: ZF CVS Division is the CV Industry's One-Stop-Shop
ZF CVS Division is the CV Industry’s One-Stop-Shop Vehicle Vehicle Repair & Upgrade & Fleet Operations Development Production Maintenance Update & Management Addresses diverse commercial transportation applications A powerful advantage for customers world-wide © ZF Friedrichshafen AG 6
Slide 8: ZF's Next Generation Mobility Strategy: Climate Neutrality
ZF’s Next Generation Mobility Strategy : Climate Neutrality A clean, safe, comfortable and affordable mobility for everyone, everywhere. Climate Neutrality: • Reduce CO2 emissions by 80% (compared to 2019) by using green energy until 2030 (Scope 1 and 2) • Reduce CO2 emissions of upstream value chai
Slide 9: ZF CVCS: Introduction & Strategy
02 ZF Commercial Vehicle Control Systems India Limited (“ZF CVCS”): Introduction & Strategy ZF confidential
Slide 10: ZF CVCS: Building on a Strong Heritage
ZF CVCS : Building on a Strong Heritage ZF Group Integration Inauguration Inauguration of Oragadam Inauguration of Ambattur Inauguration Expansion Jan 2022 Plant - Feb’24 Inauguration of Technology plant and of Pant Nagar of MWC WABCO integrated of MWC Plant center Inauguration 2022 Software Plant p
Slide 11: ZF CVCS: At a Glance
ZF CVCS : At a Glance Over 6 Decades as a Market Leader Pant Nagar 6 4 ~270 Lucknow Manufacturing Plants Global Engineering & Authorised Service Technology Centers Partners Jamshedpur 1 ~ 550 > 1,000 Test Track Aftermarket Dealers/ Engineers, Global center Distributors for Digitalization and Softwar
Slide 12: ESC Track
ESC Track • Developed a state-of-the-art ESC test track with a steering pad at the existing proving ground - Certified by TUV Rheinland and ARAI • Positions ZF as a holistic end–to–end systems solution partner for advanced braking and active safety systems • New track will cater towards end-to-end E
Slide 13: ZF Industrial Park, Oragadam
ZF Industrial Park, Oragadam • ZF CVCS’ 6th manufacturing facility in India & Cornerstone of ZF’s strategic intent for Make in India, for India & for the World • Facility powered by 100% renewable energy • Oragadam plant operated by ~80% women employees • MIPL: Advanced technology solutions towards
Slide 14: A Leading Supplier of Technologies and Services to the Indian CV Industry
ZFCVCS – A Leading Supplier of Technologies and Services to the Indian CV Industry 1 Six decades of market leadership with multiple growth levers 2 Well positioned to serve marquee clients through broad market focus 3 Customer centric, Total Quality Management (TQM) driven, lean organization 4 Stron
Slide 15: Sustained Focus on Value Creation for Shareholders
Sustained Focus on Value Creation for Shareholders… Value creation New Innovation Pipeline Partner of Choice for Extensive Technology India’s OEMs Reservoir Global Electrified Capability Partners for fleet Excellence in Execution Connected Innovation & CoE for export Technology manufacturing and Lea
Slide 16: Riding on India's Growth & Increasing Penetration of Advanced Technologies
… by (1) Riding on India’s Growth & Increasing Penetration of Advanced Technologies Advanced technology adoption Advanced technology Applicable Content per Vehicle adoption ~$3900 ~$3200 ~$3000 ~$1500 ~$1500 ~$1000 ~$1000 ~$950 2X Opportunity ~$600 Increase in adoption of new ~$590 technologies & ev
Slide 17: Pioneering Customer & Market-oriented, Cost-optimized Solutions
(2) Pioneering Customer & Market-oriented, Cost- optimized Solutions Solving the industry's key challenges Focused on efficiency Focused on safety Focused on digitalization Product and system solutions for the reduction Assistance systems (ADAS) for the protection Connectivity & SW solutions for eff
Slide 18: Preferred Technology and Systems Solutions Partner to CV OEMs and Fleets
(3) Preferred Technology and Systems Solutions Partner to CV OEMs and Fleets Digital fleet solutions Connectivity solutions Safety electronics ADAS / AD SYSTEMS Vehicle electronic systems Steering systems Suspension control solutions Brake & stability Electronic components control solutions Air mana
Slide 19: Leading the Path to ACE
(3A) Leading the Path to ACE Solutions for each technology path in place Leading player in ACE technologies and solutions FMS Extend Digital products eComp EBS & Solution offerings ECAPU AMT ECAS Transform braking, air Management technology S-CAM4T IPM Radar Extend intelligent control from ICE to eM
Slide 20: EV Market Poised for Exponential Growth
(3B) EV Market Poised for Exponential Growth EV Bus Sales India Factors Influencing the EV Penetration 3,708 2,008 2,031 1,194 Infrastructure Climate Concern & Urbanization 492 378 Government Initiatives initiatives of OEMs 147 development FY 19 FY 20 FY 21 FY22 FY 23 FY 24 FY 25 YTD EV Penetration
Slide 21: Technology Solutions Ready for EV Migration
(3B) Technology Solutions Ready for EV Migration Conventional ICE Electrified Engine Driven compressor Electric compressor solution dedicated to electric & hybrid CV applications eCompressor EBS based ESC with improved regen ABS Based ESC System efficiency & range EBS based ESC Electronic controlled
Slide 22: Advanced Driver Assistance Systems (ADAS)
(3C) Advanced Driver Assistance Systems (ADAS) Driving into the future • Advanced driver assisted system towards improving safety • Draft regulation approved by technology committee. Govt notification expected in H2 2024 (possible implementation time frame 24 to 36 months) • Launched in 2018 with TA
Slide 23: SCALAR: Digital Fleet Orchestration Solution
(3D) SCALAR : Digital Fleet Orchestration Solution Connectivity Digital services User portal ZF | PaaS | SaaS Connectivity Value Propositions Core services: ZF portal • Data Ingestion • Data Mapping PRODUCTIVITY UPTIME • GDPR • Uptime (99.98%) • Serviceability … COMPLIANCE SUSTAINABILITY Wl portal D
Slide 24: Connectivity Solutions to OEMs
(3E) Connectivity Solutions to OEMs Connected Vehicles Trend Highly secure hardware as per regulation 1,88,105 1,56,108 Data ingestion & API service to OEM cloud 1,17,996 SIM & KYC management 62,663 State level empanelment & vehicle tagging 15,163 Features in Pipeline 3 91 • Vehicle & prognostic ser
Slide 25: ZF CVCS India Day at IAA 2024
ZF CVCS India Day at IAA 2024 • ZF CVCS hosted ZF India Day at Jeversen Test Track during IAA Transportation 2024 • 30+ customer representatives from OEMs, including CXOs and teams from engineering, purchasing, and marketing attended • Customers experienced live demonstrations of ZF’s latest technol
Slide 26: ZFCVCS: Key Moats
03 ZFCVCS: Key Moats ZF confidential
Slide 27: Trusted Innovation Partner for India's OEMs
Trusted Innovation Partner for India’s OEMs Technology & Applicated • Launch of Electronically Controlled Platforms 2024 Air Suspension (ECAS) for Ultra Low Floor Entry buses (ULE) in ICE • First to bring advanced technology and EV buses tailored for Indian CV market ECAS • Launch of Pneumatic & Hyd
Slide 28: Excellently Positioned to Deliver Advanced Technologies at Best Cost
Excellently Positioned to Deliver Advanced Technologies at Best Cost Intelligent Trailer Frugal engineering expertise with an Skilled application engineers Program ability to redesign advanced technologies provide excellent customer connectivity and mature products for price sensitive and support fo
Slide 29: EBS and ESC for EV applications
EBS and ESC for EV applications Applicated across all OEMs thus improving safety and regen efficiency • Optimal grip under tough environmental conditions • Ensures driving stability & steerability • Maintain control of vehicle even on slippery surface • Increased road safety • Control vehicle unde
Slide 30: ECAS – Electronically Controlled Air Suspension
ECAS – Electronically Controlled Air Suspension Applicated in ICE and EV buses with Ultra low Floor Entry • Modular and Scalable ECAS system • Maintains Constant below pressure while motions • Offers Outstanding suspension Quality • Intelligent Kneeling • Automatically returns to drive height when d
Slide 31: Entry into Light Duty CV Segment
Strategic Focus - ZF CVCS’s Entry into Light Duty CV Segment Vehicle Production Forecast (1000) LCV Market Share(1) FML Others AL 209, HCV EV Penetration CAGR 2024-30 : 6.5% 3% 6% 10% 21% 900 198, MSIL 800 850 MCV 7% 703 750 20% 620 660 30% 594, TML M&M 59% 35% 39% LCV 2% GVW 1.7 to 6.5T 2024 2025 2
Slide 32: ZF Portfolio for India LCV Market
ZF Portfolio for India LCV Market ADAS, Connectivity & Others Braking System ADAS Fleet Management Solution Rear Park Assist Hydraulic Antilock Braking System Foundation Brakes Electronic Stability Control System (ESC Integrated Brake Control (IBC) Vacuum Brake Booster Light Weight Cal
Slide 33: ZF Aftermarket: Empowering Fleets with Intelligent Future-Ready Solutions
ZF Aftermarket: Empowering Fleets with Intelligent Future-Ready Solutions End-to-end solutions and services Spare parts along the lifetime of the vehicle Digital Services Genuine Spare Parts Over 188k connected vehicles Certified premium quality parts on ZF’s SCALAR platform; 1000+ across 12k retail
Slide 34: Leveraging Digitalization & Data Analytics in Aftermarket
Leveraging Digitalization & Data Analytics to Unlock Growth Opportunities in Aftermarket Analysis of Vaahan Registration State Wise and Category Wise Insights from Vehicle Age Data Analytics State Level Analysis of Opportunities Sales Analytics © ZF Friedrichshafen AG 33
Slide 35: Recognition for Excellence in Execution
Recognition for Excellence in Execution • Strong relationship with customers for over six decades • Recognized by leading customers for innovation, technology partnership, cost competitiveness, quality and excellence • Recipient of 30+ customer awards over the last decade+ • 10 awards from Ashok Ley
Slide 36: ESG Focused Business Model
ESG Focused Business Model E S G Driving Decarbonization for a Focusing on Road Safety Building Success Through Greener World Governance • Implementing technologies to improve • 10,000+ drivers upskilled in • Robust & effective corporate vehicle efficiency and reduce carbon partnership with RTOs and
Slide 37: Sustainability at ZF CVCS
Sustainability at ZF CVCS Be ahead of Targets – Scope 1 & Scope 2 • Reduction of CO2 emissions to 90% by 2027 ahead of global targets 2030; all ZF CVCS plants to be driven by 100% renewable energy • Ambattur , MWC and Oragadam plants (3 / 6 plants) driven by 100% renewable energy sources • Group cap
Slide 38: ZFCVCS: Q2 FY25
04 ZFCVCS: Q2 FY25 ZF confidential
Slide 39: ZF CVCS India Quarter Performance
ZF CVCS India Quarter Performance (Rupees in crore) Total Revenue EBITDA -6.5% +5.6% -2.2% +9.1% 1,016 971 22.7% 950 19.0% 19.7% 449 430 366 118 126 123 170 179 164 323 278 300 138 162 125 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 OEM Aftermarket Exports Service Income Constitutes product sale
Slide 40: ZF CVCS India Annual Performance
ZF CVCS India Annual Performance (Rupees in crore) Total Revenue EBITDA % on Product sales +23.1% +10.8% +35.4% +85.2% 19.4% 3,816 +36.5% 3,444 17.2% 2,543 1,854 +18.6% 1,598 1,864 12.6% 1,031 661 429 479 14.7% 537 685 334 260 1,100 1,074 290 944 245 722 234 318 409 197 FY21 FY22 FY23 FY24 FY21 FY22
Slide 41: Thank you. Welcome your questions and feedback.
Thank you. Welcome your questions and feedback.
ZF Commercial Vehicle Control Systems India — Investor Presentation (November 2024) on 6ix