Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q3 FY23 Earnings Presentation
37 slides from Sona Blw Precision Forgings's earnings presentation, Jan 24, 2023
Slide 1: Q3 & 9M FY23 Earnings Presentation
Q3 & 9M FY23 Earnings Presentation 24 January 2023
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: Our Management
Our Management Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 4: Q3 FY23 Financial Performance Highlights
Q3 FY23 Financial Performance Highlights 6,850 mn | 39% 1,862 mn | 43% 1,071 mn | 45% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth1 27.2% EBITDA Margin 15.6% PAT Margin 1,733 mn | 29% 26% BEV Revenue | YoY Growth Q3 FY23 Revenue Share from BEV Notes: 4 1. Excluding exceptional income of
Slide 5: 9M FY23 Financial Performance Highlights
9M FY23 Financial Performance Highlights 19,316 mn | 22% 4,944 mn | 17% 2,755 mn | 18% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth1 25.6% EBITDA Margin 14.3% PAT Margin CY21 CY22 CY21 CY22 6.3% 7.2% 4.6% 4.1% Global Market Share Global Market Share of Differential Gears2 of Starter Mot
Slide 6: Update on our Strategic Priorities
Update on our Strategic Priorities Net formed differential gears coming out of our forging press
Slide 7: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 7
Slide 8: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 25% 4,670 mn 31% 9M FY23 Revenue Share 9M FY23 BEV segment 9M FY23 BEV revenue from BEV revenue YoY growth 37 41 +4 (10+27)1 (10+31)1 EV Programs1 awarded across EV Programs1 awarded across 23 customers as at the end of 25 customers as at the end of Q2 FY23 Q3
Slide 9: 41 EV programs across 25 different customers
41 EV programs across 251 different customers No. of North America Europe2 Asia programs customers 4 Customers 5 Customers 4 Customers - 3 8 1 6 2 2 22 10 4 4 11 5 2 3 1 - 11 7 3 3 9 8 - 3 3 - +2 4 19 +2 Programs in serial production India Programs in orderbook 15 Customers +2 Programs for geartrain
Slide 10: 2 significant EV program wins in Q3 and a new EV product
2 significant EV program wins in Q3 along with the introduction of a new EV product Electronically Differential Assembly for Locking Differential Electric Cars for Electric SUVs Global OEM of EVs US-European OEM of PVs & EVs ₹ 33,500 mn H2 FY24 ₹ 3,600 mn H2 FY24 addition in our orderbook SOP Year a
Slide 11: Electrification: Our Approach to Market
Electrification: Our Approach to Market Driveline Solutions Motor Solutions Core Strength: Core Strength: Power Rating High Torque, High Power Density EV Products Low Voltage, High Power Density Commercial Personal Personal Commercial > 600 kW 300 – 600 kW Epicyclic Spool EDL Geartrain Gears 100 – 3
Slide 12: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 12
Slide 13: Net order book grows to ₹238 billion
With new wins of ₹42 billion our net order book1 grows to ₹238 billion (11.2x FY22 revenue) 205 bn 9 bn Orders consumed from 42 bn 238 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q2 FY23 programs won in Q3 FY23 Q3 FY23 programs during Q3 FY23 EV Rs. 174 Bi
Slide 14: We are supplying to most of the major global OEMs
We are supplying to most of the major global OEMs 7 of the world’s top 10 PV OEMs1a 5 of the world’s top 15 EV OEMs1c 3 of the world’s top 10 CV OEMs1b 4 of the Indian top 15 Indian e-2-Wheeler OEMs1d 7 of the world’s top 10 tractor OEMs1b Global Market Share of CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 15
Slide 16: Diversified Revenue Mix – By Powertrain
Diversified Revenue Mix – By Powertrain Battery EV increasing as a % of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 25% in FY21 to 17% in 9M FY23 FY20 FY21 FY22 9M FY23 2% 14% 25% 25% 29% 27% 26% 20% 42% 34% 31% 38% 27% 2
Slide 17: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 1% 1% 1% 3% 18% 33% 17% 27% FY22 PV 9M FY23 FY22 FY22 68% 69% 22% CV 25% 26% 16% 14% 26% 3% 2% 7% 1% 4% 23% OHV 18% 45% 17% 15% 13% 9M 9M FY23 FY23 E2W/E3W 20% 1.5% 3.5% 29% 32% 17
Slide 18: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 18
Slide 19: We have introduced one more product to the market
We have introduced one more product to the market Autonomous Electric /Connected Integrated High Voltage Inverter Controller with GaN Inverter DC-DC Converter Liquid Cooled Inverter Motors for Bots High Voltage Integrated and Industrial Traction Motors P4 e-Axle Automation Magnet-free Motors, EMSM a
Slide 20: Q3 FY23 Financial Update
Q3 FY23 Financial Update Our final drive gears
Slide 21: Q3 FY23 Financials
Q3 FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 24% YoY: 43% YoY: 39% 1,862 YoY: 45% 1,071 6,850 864 1,305 4,941 738 26.4% 27.2% 17.5% 15.6% 14.9% 1,349 1,733 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 2 Q3 FY22 Q3 FY22 (adj) Q3 FY23 o Highest ever BEV
Slide 22: 9M FY23 Financials
9M FY23 Financials Revenue1(Rs. mn) EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%) BEV YoY: 17% YoY: 7% 4,944 YoY: 22% YoY: 18% 19,316 4,237 2,755 2,569 2,343 15,806 26.8% 25.6% 16.3% 14.8% 14.3% 3,556 4,670 9M FY22 9M FY23 9M FY22 9M FY23 2 9M FY22 9M FY22 (adj) 9M FY23 o BEV Revenue
Slide 23: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 28.5% 30.4% 26.6% Mar-20 Mar-21 Mar-22 Dec-22 Mar-20 Mar-21 Mar-22 Dec-22 Mar-20 Mar-21 Mar-22 Dec-22 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5.0 4.7 3.9 3.9 3.9 4.1 3.9 0.76 0.43
Slide 24: ESG Update
ESG Update
Slide 25: We have published our first sustainability report
We have published our first sustainability report Our ESG Goals Environment Social Governance • Providing low carbon • Maintaining highest • Zero tolerance for mobility solutions level of Quality, Health corruption and Safety • Resource efficiency improvement and • Becoming an equal • Zero non-compl
Slide 26: Q&A New Product Development Discussion
Q&A New Product Development Discussion
Slide 27: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 28: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders. 28
Slide 29: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Started journey as • 2 Plants • 2 Plants • 47 Customers (37+10) public company • 1 Product • 2 Products • 9 Plants (5+4) • 68 customers • 10 Products (5+5) • 9 plants • 15 products 25,7
Slide 30: Guided by Values
Guided by Values 34.2% Agility Growth 5-year Revenue CAGR 27.4% Vitality Margins Integrity 5-year Avg. EBITDA >28% Returns Frugality ROE Each Year (FY17-FY22) 30
Slide 31: Vertically-integrated and modular electro-mechanical and autonomous solutions provider
Vertically-integrated and modular electro-mechanical and autonomous solutions provider for the new EPIC value chain Customer Mobility Interface Provider Integrated Powertrain Autonomous Solutions Solutions Provider OEM Provider • Radar Boards & Antenna Design • Embedded & Application Software Electr
Slide 32: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally Sweden Gothenburg USA Location Capacity3 Tecumseh, MI 1 mn starter motors China Location Capacity3 Belgium Ypsilanti, MI Hangzhou 1 mn starter motors Genk Germany 7 of the world’s top 10 PV OEMs1a Cologne 3 of the world’s top 10 CV OEMs1b Mexico
Slide 33: Product Summary
Product Summary Belt Starter Generator Starter Motor Off Highway Differential Starter Motor Vehicles Assembly Differential Bevel Gears Passenger Vehicles 5 1 1 4 3 2 2 3 4 Spiral Bevel Gears Differential Bevel Gears Differential Reverse Idler Portal Axle Gears Assembly Starter Motor* Coupling/ Sleev
Slide 34: Product Summary
Product Summary Controller Electric 2-Wheelers Drive Motor (PMSM) Differential Bevel Traction Motor* Gears (PMSM) Hub Wheel Motor (BLDC) 3 Electric Cars 1 2 Controller* 3 7 Drive Motor (PMSM) 4 5 6 Electric 3-Wheelers 2 Controller 1 5 Epicyclic e-Axles Spool Gears Geartrain 1 2 3 Electronically Diff
Slide 35: Revenue share from BEV has grown 22x over 4 years
Revenue share from BEV has grown 22x over 4 years, with absolute BEV revenue growth at 36x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) *9M FY23 19x 36x 6,227 Annualized 5,042 25% 25% 14% 2,057 4,670 9M FY23 1.3% 2.0% 174 234 FY19 FY20 FY21 FY22 9M FY23 FY19 FY20 FY21 FY22 FY23* 35
Slide 36: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share of CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.2% Differential Gears1 Global Market Share of CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the
Slide 37: Illustration of change in margin with 100% RM cost passthrough
Illustration of change in margin with 100% RM cost passthrough Before RM price RM price increase After RM price (numbers in INR) increase @15% increase Revenue 100.00 +6.75 106.75 Material Cost 45.00 +6.75 51.75 Material Profit 55.00 - 55.00 Material Margin 55.0% 350 bps 51.5% Ceteris paribus, 15% R
Sona BLW Precision Forgings — Q3 FY23 Earnings Presentation on 6ix