Sona Blw Precision Forgings Limited has informed the Exchange about Investor Presentation
BofA Global EV / EV Battery Conference
17 May 2022
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 any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, this accuracy, completeness, Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
fairness and reasonableness of
the contents of
Certain matters discussed in this presentation may contains certain forward looking statements concerning the Company’s future business prospects and business profitability. Such forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that are difficult to predict. These risks and uncertainties include, but are not limited to, the Company’s ability to manage growth, the fluctuations in earnings, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, the Company’s ability to manage its international operations, Government policies and actions regulations, interest and fiscal costs generally prevailing in the economy. The Company does not other undertake to make any announcement these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
in case any of
2
With the requirement of new components, EV supply chain to be vastly different from ICE supply chain
Share of FY20 Revenues for the Indian Auto Component Industry
Body/Chassis
17%
Suspension & Braking Parts
14%
Drive Transmission & Steering
Interiors (Non Electronics)
13%
12%
Electricals & Electronics
10%
Cooling Systems
3%
Engine Components
26%
45-50%
15-20%
3-5%
25-30%
40-45%
20-25%
5-7%
25-30%
Exhaust Mgt Systems
5%
35-40%
20-25%
6-8%
30-35%
40-45%
20-25%
5-7%
30-35%
Products that can be upgraded to suite EV requirements
Products that will be obsolete with electrification
Indicative cost proportions
Battery & Related Components
Powertrain & Power Electronics
Connectivity and Control Systems
Chassis and Other Body Parts
Source: EV Landscape: Opportunities for India’s Auto Component Industry – Yes Bank & ACMA, Company Analysis
3
Many powertrain & connectivity systems are expected to have high opportunity, but with high barriers of entry
High
y t i n u t r
o p p O
f
o e z i S
l
d n a e m u o v y r t s u d n
i
s i s a B (
) y t i l i
b i s s o p n g a m
r
i
Application software
PMSM Motor
Transmission / Differential
Motor Controller
Telematics
BLDC Motor
Battery pack assembly
Wiring harness & connectors
DC-DC converter
Onboard charger
BMS
Thermal Management
Battery housing
Power distribution unit
Induction motor
Battery repurposing
Battery connectors
Battery swapping
BaaS
Battery recycling
Switched Reluctance motor
e-Axle
Software (firmware)
Battery & Related Components
Powertrain, connectivity and control systems
Darker shade represents the Products on Sona Comstar Technology Roadmap
Low
Barriers of Entry (Basis import dependency, competitive intensity & skills needed)
Illustrative Representation Source: EV Landscape: Opportunities for India’s Auto Component Industry – Yes Bank & ACMA, Company Analysis
High
4
Every application has different requirement, which needs the most suitable powertrain technology
Vehicle Segment
Application
Torque
Speed
Robustness
Cost Effectiveness
Electric 2-wheelers (city speed)
Short distance city commute, speed limited to <60 kmph
Electric 2-wheelers (high speed)
Long distance city / intercity commute, can run at >60 kmph speed
Electric 3-wheelers (passenger carrier)
Carry passengers for short distance city commute
Electric LCVs (3 or 4-wheelers)
Carry goods for last mile deliveries within city
Electric Off Highway Vehicles
Agriculture, and any other off highway heavy duty applications
Electric Cars (performance)
Daily commute within the city
Electric Cars (high performance)
Intra city commute and inter city commute at high speed
Electric Bus
Public transport within city for daily passenger commute
Electric Trucks
Carry goods for long hauls
Illustrative Representation
Low
Medium
High
5
About Us
Final Inspection of Differential Assembly
Our Value Proposition
We are one of the world’s
leading automotive technology
companies, designing,
manufacturing and supplying
mission-critical complex systems
and components for both
electrified and non-electrified
powertrain segments
Sizeable and Increasing Presence in EVs
Best-in-Class Financial Performance
Scaled Player with High and Profitable Growth Outlook
7
Our Strategic Priorities
Technology
Electrification
Global Market Significance
Diversification
8
We have made progress on our technology roadmap by introducing 3 new products in FY22
Autonomous /Connected
Electric
GaN Inverter
Liquid Cooled Inverter
High Voltage Inverter
DC-DC Converter
High Voltage Traction Motors
Integrated P4 e-Axle
Motors for Bots and Industrial Automation
Predictive Active Suspension Integrated Motor Controller Module
Low Voltage Inverter
Magnet-free Motors, EMSM and SRM designs
Mid-mount Drive Motor (PMSM)
Hub Wheel Motor (BLDC)
Axial Flux Motors
Belt-driven Starter Generator (BSG)
Rigid e-Axle
Reduction Drive Unit
Independent suspension e-Axle
Epicyclic Set
Active Biased Differential
Diff Gears
Starter Motors
Diff Assembly
Spool Gear
Net Spiral/ Hypoid Gears
Future Products
Current Products
Legacy Products
Note: The product images shown are for illustration purposes only and may not be an exact representation of the products
9
For EV drivetrains, we now have products/solutions for almost every architecture
Final Drive Differential Assembly
Spool Gear
Epicyclic Geartrain
Final Drive Differential Assembly
Final Drive Differential Assembly
Spool Gear
Epicyclic Geartrain
Front Axle
Rear Axle
Front Axle
Rear Axle
Front Axle
Rear Axle
1 or 2 motor architecture
3 motor architecture
4 motor architecture
Apart from EVs it is used for CV gearbox/hub reduction application also
Currently in production
Order won and production to start in FY24
Order won for CV application and production to start in FY23
10
For traction motors we aim to develop products by mapping the right technology to the right application
>300
150-300
100-150
40-100
30-40
20-30
10-20
5-10
<5
- Target serial production1 in 2023
- Target serial production1 in 2024
- Target serial production1 in 2026
SRM
SRM
SRM
Electrostatic
Electrostatic
SRM
Electrostatic
SRM
Electrostatic
PMSM
EMSM
PMSM
EMSM
PMSM
EMSM
Electrostatic
BLDC
BLDC
BLDC
Already developed
Under development
To be developed
)
W k ( g n i t
a R r e w o P
Bots & Industrial Automation
Electric Scooter
Electric Motorcycle
Electric 3-wheeler
Electric LCV
Electric Off Highway Vehicle
Electric Car
Electric Bus
Electric Truck
Notes: 1.
Serial production is likely to commence in the year mentioned for the product(s) being developed under these strategic partnerships
11
Our Strategic Priorities
Technology
Electrification
Global Market Significance
Diversification
12
Sizeable and Increasing Presence in EVs
25%
2.5x
5,042
14%
2,057
30
2x
15
FY21
FY22
FY21
FY22
FY21
FY22
Revenue Share from BEV
BEV segment revenue
Cumulative No. of EV Programs
15 (3+12)1
EV Programs1 awarded across
10 customers as at the end of
FY21
+15
awarded
30 (9+21)1
EV Programs1 awarded across
19 customers as at the end of
FY22
Notes: 1.
Include only BEV and PHEV programs currently in serial production as well as in the orderbook; numbers in brackets to be read as (# of programs in serial production + # of programs in orderbook)
13
30 EV Programs across 191 different customers
North America 4 Customers 3 9
6
9
+2
Europe 4 Customers 1 2
3 2
+3
4
+3
Asia 4 Customers 2 2 3 1
+2
4
+2
Programs in serial production
Programs in orderbook
Programs for geartrain components
Programs for traction motors, IMCM and PHEV starters
Programs for e-Axle
Notes: 1.
2 customers are present in more than one geography
13
+8
India 10 Customers 3 5
10 5
+6
3
+x denotes the change in FY22
14
Our Strategic Priorities
Technology
Electrification
Global Market Significance
Diversification
15
EV contributes 62% to our net order book1 of Rs. 186 billion
140 bn
Orderbook at the end of Q1 FY22
30 bn
Orders consumed from matured and ramp-up programs during the last 3 quarters
76 bn
Orders added for programs won during the last 3 quarters
186 bn
Orderbook at the end of Q4 FY22
EV Rs. 115 Billion (61.6%)
Non-EV Rs. 71 Billion (38.4%)
# of Programs
# of Customers
54.5% 11 7
PV
6.3% 7 6
0.8% 3 3
19.9% 29 13
11.5% 15 9
7.0% 43 15
2W &3W
CV &OHV
PV
CV
OHV
Notes: 1.
Net order book means the aggregate revenue from awarded programs which are either yet to start production or are yet to fully ramp up, in the next 10 years, after adjusting for the negative impact of all programs that are expected to reach end of life or be phased out. We have also applied a discount to accommodate any unforeseen delays or changes in program launches that may happen in the future.
16
Our Global market share continues to increase across Differential Gears & Starter Motors
Differential Gears1
CY19
4.5%
CY20
5.0%
CY21
6.3%
Starter Motors1
CY19
2.5%
CY20
3.0%
CY21
4.6%
While we continue to dominate the Indian market for Differential Gears
Passenger Vehicles
Commercial Vehicles
Tractors
55-60%2
80-90%2
75-85%2
Notes: 1. 2.
As per Ricardo report; starter motor market share across light vehicles As per CRISIL report
17
Our Strategic Priorities
Technology
Electrification
Global Market Significance
Diversification
18
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 24.8% in FY21 to 17.6% in FY22
FY19
FY20
FY21
FY22
1% 17%
47%
35%
2%
29%
42%
27%
14%
27%
34%
25%
25%
26%
31%
18%
Battery EV
Micro-hybrid / Hybrid
Powersource Neutral
ICE Dependent
19
Diversified Revenue Mix
By Geography
1%
11%
27%
25%
FY21
1%
18%
36%
22%
FY22
26%
By Product
3%
1%
28%
27%
25%
24%
18%
17%
FY21
3%
2%
FY22
33%
27%
26%
By Vehicle segment
FY21
68%
14%
17%
PV
CV
OHV
FY22
68%
16%
15%
E2W/E3W
0.1%
1.5%
20
FY22 Financial Performance Highlights
21,306 mn | 36%
5,591 mn | 27%
3,615 mn | 68%
Revenue | YoY Growth
EBITDA | YoY Growth
PAT | YoY Growth
26.2% EBITDA Margin
17.0% PAT Margin
32.4%
RoCE1
36.3%
RoE2
Notes: 1. 2.
ROCE = LTM EBIT/ Average tangible capital employed ROE = LTM PAT/ Average tangible net worth
21
Thank you
Our final drive gears
Appendix
Outside view of our manufacturing plant at Manesar, Haryana
Product Summary
Belt Starter Generator
Starter Motor
Differential Bevel Gears
Passenger Vehicles
Starter Motor
Off Highway Vehicles
Differential Assembly
43
2
1
4
3
1
2
Differential Assembly
Reverse Idler
Inter-Axle Gear Set
Coupling/ Sleeves
Differential Bevel Gears
Portal Axle Gears
Differential Bevel Gears
Starter Motor
Commercial Vehicles
5
Epicyclic Geartrain/Gears
1
2
3
4
24
Product Summary
Controller
Electric 2-Wheelers
Drive Motor (PMSM)
Differential Bevel Gears
Traction Motor (PMSM)
Electric Cars
Hub Wheel Motor (BLDC)
1
3
2
3
4
6
5
Drive Motor (PMSM)
Electric 3-Wheelers
1
2
5
Spool Gears
Epicyclic Geartrain
e-Axles
1
2
3
Controller
Integrated Motor Controller Module (for Predictive Active Suspension)
Differential Assembly
Controller
25
Our story so far…
Phase - 1
• 18 Customers • 2 Plants • 1 Product
Revenue in INR millions
FY99 – FY22 Avg EBITDA margin 26.4% Revenue CAGR 36.6% Industry CAGR 8.9%
Phase - 2
• 22 Customers • 2 Plants • 2 Products
Phase - 3
• Acquisition of Comstar • 47 Customers (37+10) • 9 Plants (5+4) • 10 Products (5+5)
Phase - 4
• Started journey as public company
• 57 customers • 9 plants • 13 products
21,306
FY17– FY22 Avg. EBITDA margin 27.4% Revenue CAGR 34.2% Industry CAGR 1.4%
12,201
15,663
FY12– FY16 Avg. EBITDA margin 25.0% Revenue CAGR 10.6% Industry CAGR 1.7%
2,807
2,616
3,309
3,456
3,653
6,992
6,088
5,033
FY99– FY11 Avg. EBITDA margin 21.5% Revenue CAGR 50.6% Industry CAGR 14.6%
697
910
1,135
1,348
1,174
1,492
2,207
16
120
223
183
221
9 9 Y F
0 0 Y F
1 0 Y F
2 0 Y F
3 0 Y F
399
4 0 Y F
Notes: 1. 2.
FY20, FY21 and 9M FY22 include Comstar Industry data source: SIAM
5 0 Y F
6 0 Y F
7 0 Y F
8 0 Y F
9 0 Y F
0 1 Y F
1 1 Y F
2 1 Y F
3 1 Y F
4 1 Y F
5 1 Y F
6 1 Y F
7 1 Y F
8 1 Y F
9 1 Y F
0 2 Y F
1 2 Y F
2 2 Y F
26
Guided by Values
Agility
34.2%
Growth
5-year Revenue
CAGR
Vitality
Integrity
Frugality
27.4%
Margins
5-year Avg.
EBITDA
>28%
Returns ROE
Each Year
(FY17-FY22)
27
Established Global Presence to Serve Customers Locally
7 of the world’s top 10 PV OEMs1
3 of the world’s top 10 CV OEMs2
7 of the world’s top 8 tractor OEMs2
Sweden
Belgium
Germany
USA
Mexico
China
9 Manufacturing Plant
3 R&D Centre
1 Tool & Die Shop
8 Warehouse
1 Sales Office
Notes: 1. 2.
Source: BofA, Company Analysis Source: Ricardo report
India
6
3
5
28
Electrification: Our Approach to Market
Power Rating
Vehicle Segment
Geography
Products
Driveline Business Core Strength: High Torque - High Power Density
350-600kw
BEV High Performance
100-350kw
BEV Performance
U.S., Asia, Europe, India
Epicyclic Geartrain
Spool Gears
50-100kw
BEV
PHEV
EDL
Final Drive assembly
Differential assemblies
Differential gears
Motor Business (next phase; 2020-23)
30-50kw
PHEV
15-30kw
MHEV
5-15kw
E-3 Wheeler
Motor Business Core Strength: Low Voltage - High Power Density
India, China, Europe
India
BSG (Gen-3)
BSG
PMSM motors
Motor controllers
<5kw
E-2 Wheeler
SRM motors
BLDC drive motors
Wheel hub BLDC motor
PMSM motors
Motor controllers
e-Axle
29
Revenue share from BEV has grown 19x over 3 years, with absolute BEV revenue growth at 29x
Revenue from BEV (%)
BEV Segment Revenue (Rs. mn)
19x
1.8x
24.8%
13.8%
2.0%
1.3%
FY19
FY20
FY21
FY22
29x
5,042
2.5x
2,057
174
FY19
234
FY20
FY21
FY22
30
FY22 Financials
Revenue (Rs. mn)
BEV
YoY: 36%
21,306
15,663
2,057
FY21
5,042
FY22
o BEV Revenue higher by 145%, constitutes
25% of total revenue
o Non-BEV Revenue grew 20% despite a decline of automotive sales in our key markets of North America and Europe by ~4%
EBITDA (Rs. mn)
EBITDA Margin (%)
PAT (Rs. mn)
PAT Margin (%)
YoY: 27%
5,591
3,615
4,410
YoY: 68%
2,152
YoY: 37%
3,088
2,256
28.2%
26.2%
13.7%
17.0%
14.4%
14.5%
FY21
FY22
FY21
FY22
FY21 (adj)
FY22 (adj)
o Positive margin impact of ~1.4% and ~1.9% due to operating leverage and product mix respectively
o Net impact of change in depreciation and interest cost (as % of revenue) has improved PAT margin by ~0.7%
o Margin impact due to increase in RM cost
• Arithmetic effect despite pass through
~(2.9%)
• No pass-through impact ~(1.2%)
o ~(1.1%) margin impact due to lower forex
gain
o PAT for both years has been adjusted IPO expenses and one time tax
for impacts in FY22
31
Key Ratios
VA/Employee cost
5.1
5.2
5.7
RoCE (%)
RoE (%)
28.8%
36.1%
32.4%
30.4%
34.6%
36.3%
Mar-20
Mar-21
Mar-22
Mar-20
Mar-21
Mar-22
Mar-20
Mar-21
Mar-22
Net Debt to EBITDA
Working Capital Turnover
Fixed Asset Turnover
3.9
3.9
3.9
4.6
5.0
4.7
0.76
0.43
(0.01)
Mar-20
Mar-21
Mar-22
Mar-20
Mar-21
Mar-22
Mar-20
Mar-21
Mar-22
Note:
1) 2)
3)
VA/Employee Cost = Material margin/ (Employee cost + Manpower cost on hiring) ROCE = LTM EBIT/ Average tangible capital employed
ROE = LTM PAT/ Average tangible net worth
Net Debt to EBITDA = Short-term & long-term debt less Cash & bank balances / LTM EBITDA
4) 5) Working Capital Turnover = LTM Revenue/ Average net working capital
Fixed asset turnover = LTM Revenue/ Average Tangible net block
6) 7) Mar-20 numbers are based on pro-forma financials 8)
RoCE and RoE for earlier years have been recalculated due to merger
32