ZFCVINDIANSE4 August 2022

ZF Commercial Vehicle Control Systems India Limited - Announcement under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015 - Investor Presentation for Inv...

ZF Commercial Vehicle Control Systems India Limited

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ZF Commercial Vehicle Control Systems India Limited – Quarterly Earnings Call

August 4,2022

MACRO ECONOMIC UPDATE

GDP Trend

5.5% 6.4% 7.4% 8.0% 8.2% 7.2% 7.0%

8.7% 7.2%

4.2%

FY 12-13

FY 13-14

FY 14-15

FY 15-16

FY 16-17

FY 17-18

FY 18-19

FY 19-20

FY 20-21

FY 21-22

FY 22-23

Freight and Diesel Index

-7.3%

Internal

▪ The GDP growth estimate for FY 22-23 is 7.2% down from 9.5% in view of the global geo-political situation arising out of the Russia-Ukraine conflict and elevated global commodity prices

▪ Risk to inflation have risen, RBI has revised up its

inflation forecast to 6.7% for Fiscal 2023

▪ Road, Metro projects, Power and Water projects have seen the maximum increase in infrastructure spend allocation

▪ Vehicle Scrappage policy announced and to be

implemented in 3 Phases & Phase 1 Implemented from April 2022

▪ In Q1, there was a drop in freight rates since

transporters passed on the full effect of a drop in diesel prices

▪ However, fleet utilization also dropped especially in Agri products, auto-carriers, FMCG/FMCD, petroleum tankers, and textiles & the segments, such as market load, parcel/loose goods, mining saw slower decline.

Air Brake Vehicle Production Trend

Internal

• VP in Q1 is 90,301 Vs 39,603 in PY; growth of 128.0%

In Numbers

▪ Q1 VP growth of 128.0% (Lower base due to Covid Second Wave)

▪ The VP growth is driven by

▪ Higher retail sales due to

increased truck utilization driven by infrastructure, real estate, mining sectors.

▪ ILCV growth due to eCommerce, intracity last mile connectivity and increase in penetration of CNG/LNG Vehicles

Q1Q2Q3Q4Apr-JunJul-SepOct-DecJan-Mar2021-2239,603 54,103 65,495 87,637 246,838 2022-2390,301 - - - 90,301 Growth %128.0%NOS.FYFinancials Summary

SEGMENT WISE SALES

AM ICO

247.6

84.6

226.6

229.3

87.4

275.9

220.1

60.8

163.1

247.3

259.1

101.2

102.5

365.5

372.7

14. 0%

12. 0%

10. 0%

8.0 %

6.0 %

4.0 %

2.0 %

0.0 %

PBT TREND

10.7%

8.0%

7.3%

6.9%

76.7

86.1

44.9

43.1

30.8

Internal

INR Cr

100 .0

90.0

11.7%

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

Q 1 F Y 2 2

Q 2 F Y 2 2

Q 3 F Y 2 2

Q 4 F Y 2 2

Q 1 F Y 2 3

Q1 FY 22

Q2 FY 22

Q3 FY 22

Q4 FY 22

Q1 FY 23

PBT

PBT %

Financials Summary

PAT TREND

EBITA TREND

7.9%

70.0

16. 0%

8.5%

Internal

INR Cr

15.0%

120 .0

5.6%

4.8%

5.4%

56.6

62.4

31.3

31.8

21.4

60.0

50.0

40.0

30.0

20.0

10.0

14. 0%

12. 0%

10. 0%

8.0 %

6.0 %

4.0 %

2.0 %

0.0 %

12.2%

12.6%

11.4%

13.7%

98.2

109.8

70.3

67.5

54.0

100 .0

80.0

60.0

40.0

20.0

Q1 FY 22

Q2 FY 22

Q3 FY 22

Q4 FY 22

Q1 FY 23

Q1 FY 22

Q2 FY 22

Q3 FY 22

Q4 FY 22

Q1 FY 23

PAT

PAT %

EBITA

EBITA %

9.0 %

8.0 %

7.0 %

6.0 %

5.0 %

4.0 %

3.0 %

2.0 %

1.0 %

0.0 %

PBT- Q1 FY 22-23 Vs Q1 FY 21-22 Profit Walk

+179.5%

-11.3

-7.4

15.5

58.4

30.8

Internal

₹ Cr Fav Unfav

86.1

Q1 FY 22

Vol Effect

Emp Cost

Other exp

Service & Other income

Q1 FY 22-23

Key aspects

• Volume gains and sorting out compensation from the customers for the inflation suffered

• Growth in the service income on tech services to group companies

PBT - Q1 FY 22-23 Vs Q4 FY 21-22 Profit Walk

+12.2%

0.1

1.1

-2.1

10.2

76.7

Internal

₹ Cr Fav Unfav

86.1

Q4 FY 22

Vol Effect

Emp Cost

Other exp

Service & Other income

Q1 FY 23

Internal

Autonomous Driving

Internal

Hill Start Aid Avoids unintended roll-backs to enhance driver comfort and safety

Helps prevent roll back

• Add-on functionality to Antilock Braking System (ABS)

• Can be activated on the ABS system and does not require any additional hardware / modifications on the vehicle.

•

Improves safety during “Stop & Go” situation on a gradient

• Helps to avoid roll-back on steep slopes and gradient

• Prevents accidents caused due to unintended vehicle roll

back

• Minimizes clutch and brake liner wear (esp. for vehicles

operating on hilly terrain)

• Extends tyre life and stabilizes vehicle when

supplemented with Automatic Traction Control

Automatic Traction Control (ATC)

• Add on functionality to ABS , ECU includes ATC

function

• ATC can be enabled by adding one 3/2 solenoid valve

• Prevents wheel spin during acceleration under different surface conditions (especially slippery surface like mining / sand / Ice)

• Prevents loss of traction of one or more wheels, helps to prevent wheel slip on different surface conditions

• Better vehicle stability management, increase tire life

• Helps while driving on gradient especially with lesser

adhesion between tire & ground

ESCsmart™ Electronic Stability Control Keeps the vehicle stable during dynamic and critical driving maneuvers

Next advancement in commercial vehicle safety

• Fundamental building block towards Advanced Emergency

Braking System (AEBS)

• Automatically intervenes to improve vehicle stability in

safety critical driving situations

• Launched in October 2017 with TATA Motors

• Regulation mandates ESC for buses from 2023

• Proactively started localization of ESC components to

make the technology more affordable

• Homologated >60% of M&HCV trucks with leading OEM

before regulation

Launch of ESCsmart In India – Oct 2017

A Complete Portfolio of ADAS, Safety Components and Systems

Front Camera S-CAM4T

Solid-State Lidar

IPM 2.0

ProAI

Front RADAR Gen21T

ADB

Electric Drive

Gen51 SR RADAR

VCM+

VCM

EBS & ESC

Software Solutions – ADOPT, OnGuardMAX™

see.

think.

act.

Trailer Electronic Braking System (T-EBS) New global electronic braking solutions for trailers

• Enables ZF’s award winning Intelligent Trailer Program, supporting more than 40 optional functions to improve operating safety and efficiency.

• With EBS-E, the braking system has evolved to

become an advanced control center.

• System development process complies with automotive safety standards ISO 26262, making the product more robust and reliable

• Optimizes the cost of building, operating and maintaining

a trailer throughout its operational life

• Can be mounted and retrofitted to all trailer types,

including road trains, bi-trains and tri-trains

Connectivity Solutions

Internal

Digital Solutions: India growth story

• Released by leading CV OEM as preferred solution provider for connectivity solutions in 2020

• AIS -140 and BS-VI compliant services offered

•

Indigenous solution now with advanced capabilities for FOTA update being built rapidly

• 46 functionalities being offered on the portal with support for

back end analytics

• Home-grown, modular, scalable cloud-based solution

• Released by another OEM for their bus platforms

•

Solutions offered in the aftermarket to improve fleet profitability

• Over 90K live connections

Driving the connectivity business to new levels

Growing fleet base & Customer base

Global Cloud Platform

Hardware Platform

Talent pool &

Competency

5X growth in last 3 years (~60K connected vehicles)

Potential to grow 3X further to 150k by 2024

New off shoots in trailer business

1st customer in Scalar– SOP started

Migrated H/W competency in-house

FOTA / 4G platform next gen Hw SOP planned in 2022

Digital center @ Bengaluru

(100 HC)

Dedicated teams for H/W, F/W & testing

Enhanced Security features (TLS, HSM) & legislation F/W

Trailer Pulse Success Story

2022

10K

2025

Customer Value Proposition

Customer developed Heat Map to identify Hazard location using API Data

2021

Customers

Applicable vehicle market size : 3K POC with Key customers.

Applicable vehicle market : 5K Focus to conduct POC of TEBS + TX trailer Pulse1combo kit in retro

Create market size : 20K Make mandatory as a part of contract.

Electric Mobility

Internal

Portfolio for Electric Vehicles

ADAS: Advanced driver assistance system ADB: Air disc brake AM: Air management DCS: Door control system

eComp: Electric compressor EBS: Electronic brake system ECAS: Electronically controlled air suspension TPMS: Tire pressure monitoring system

eComp

EBS

ADB

TPMS

EC-APU

Door Controls

ADAS

Expansion at Oragadam - Update

Canteen

Phase 1 Factory

Future expansion

4W parking

Security and lockers

Dockyard

Main entrance

2W parking

Material entrance

Portfolio

Innovation

Intelligence

Safety

Efficiency

“Mobilizing Commercial Vehicle Intelligence”

Network

Performance

Connectivity

Automation

Speed

Thank you

Internal

Welcome your questions and feedback.

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ZF Commercial Vehicle Control Systems India Limited - Announcement under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015 - Investor Presentation for Inv...

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