Sansera Engineering Limited has informed the Exchange about Investor Presentation

November 08, 2022

The National Stock Exchange of India Ltd Exchange Plaza, C-1, Block G Bandra – Kurla Complex Mumbai 400051

The Department of Corporate Services BSE Limited, P.J. Towers, Dalal Street Mumbai 400001

Scrip Symbol: SANSERA

Scrip Code: 543358

Dear Sir/ Madam

Subject: Investors Presentation

Please find attached a copy of Investors presentation that would be used in the earnings call on November 09, 2022 at 10.00 am (IST) on the Unaudited financial results of the Company for the quarter and half year ended September 30, 2022.

The above presentation will also be made available on the website of our Company at www.sansera.in.

Kindly take the same in your record.

Thanking you,

for Sansera Engineering Limited

Rajesh Kumar Modi Company Secretary and Compliance Officer M.No. F5176

Encls: a/a

SANSERA ENGINEERING LIMITED (Formerly Sansera Engineering Pvt Ltd) Reg Off: No. 143/A, Jigani Link Road, Bangalore-560 105, India, Tel: +91 80-27839081/82/83. Fax: +91 80-27839309 E-mail id: info@sansera.in Website: www.sansera.in CIN: L34103KA1981PLC004542

DIVERSIFICATION. EXPANSION. PROGRESSION.

SANSERA ENGINEERING LIMITED

INVESTORS PRESENTATION

NOVEMBER 2022 1

Safe harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sansera Engineering 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, accuracy,

completeness, fairness and reasonableness of the contents of this 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.

This presentation contains certain forward looking statements concerning the Company’s future business prospects and business

profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward

looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding

fluctuations in earnings, our ability to manage growth, 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, our ability to manage our international

operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company

does not undertake to make any announcement in case any of 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.

2

Performance Highlights

Performance Highlights

Achieved

Q2FY23

Rs. 6.4 Bn

Highest ever quarterly total revenues

Achieved

H1FY23

Rs.11.7 Bn

Highest ever half yearly total revenues

Rs in Mln

Total Revenues

EBITDA

PAT

Total Revenues

EBITDA

PAT

17%

6,362

5,418

20.1% 20.1%

17.1%

9.6%

7.4%

18.5%

17.2%

7.5%

7.0%

0%

1,088

1,086

25%

11,691

-9%

518

469

9,369

16%

2,008

1,732

16%

817

706

Q2FY22

Q2FY23

Q2FY22

Q2FY23

Q2FY22

Q2FY23

H1FY22

H1FY23

H1FY22

H1FY23

H1FY22

H1FY23

› Dynamic macro backdrop globally has impacted our international sales

› As of Sep-22, our order book with annual peak revenues stood at Rs 14.2 bn

negatively. However, growth in our domestic sales more than compensated for this degrowth allowing us to record highest ever quarterly and half yearly sales

›

›

In the quarter, we were able to pass on the commodity price increase to our domestic customers. However, the passing of costs optically makes the margin percentages appear narrower

In addition to the above gross margin saw some compression both sequentially and on a YoY basis due to reduction in exports

›

›

In H1FY23, the company generated cash from operations of Rs. 1,299 Mln as against Rs. 709 Mln in H1 last year

In H1FY23, we invested Rs. 1,282 Mln towards the purchase of property, plant and equipment, etc.

› On the debt front, our net debt stood at Rs. 6,250 Mln

4

Group CEO’s Message

Commenting on the performance Mr. B R Preetham Group CEO, Sansera Engineering Limited said,

“Building on vigorous momentum in the domestic market, we have recorded our highest ever quarterly sales of Rs. 6.4

bn this quarter. Over the years, diversified product portfolio, customers and markets have been our strong suit, and

this has helped us deliver a healthy performance once again.

As planned, our EV business is growing from strength to strength with the addition of new customers. This quarter close

to 3% of our total sales came from the xEV segment.

With a solid festive season, automakers are projecting a very healthy domestic demand in the coming times.

Mr. B R Preetham Group CEO

However, exports may continue to be a drag for the industry this year. Consequently, we expect our domestic sales

to register higher growth this year.

In addition, new products for xEV and hybrid segment for which the mass

production has started will also contribute meaningfully to our growth. We have already doubled our revenues from

xEV and tech agnostic segment in H1FY23, and we expect this trend to continue in FY23.

On the non-auto side, we should see a significant outperformance in the Aerospace & Defense business next year.

The last two-three years were rather dull for the sector but now the demand is coming back strongly. In FY23, we

expect our aerospace revenues to register a 35% to 40% growth.

These trends are very well reflected in our healthy orderbook of new business with annual peak revenues of Rs. 14.2

bn (Sep-22). Amongst major order wins, we have recently won an order of ~Rs. 1,300 Mln(1) from a global auto OEM

and secured a Rs. 250 Mln(1) from a well-known American company in the non-auto space.”

(1) Peak annual revenues

5

Recent Awards & Accolades

Boeing Excellent Supplier Performance

Toyota Kirloskar Auto Parts Zero Defects Supplies

Toyota Kirloskar Motor Zero Defects Supplies

Strong and diverse business pipeline for future growth

304 LOIs/Purchase Orders from 80 customers in the auto and 37 customers in the non-auto sector

Orderbook (peak annual revenues for new business)

Rs. 14.9 Bn

Rs. 11.1 Bn

Rs. 14.2 Bn

Non-auto

16%

Auto-Tech Agnostic & xEV

21%

Auto-ICE

62%

Apr-22 

39%

61%

Domestic

Global

22%

31%

48%

Jul-22* 

60%

40%

20%

31%

49%

Sep-22 

52%

48%

xEV

Tech Agnostic

PV + CV

2W

18%

13%

30%

19%

Key Order Wins (Long-term framework orders as a part of regular business operations)

6 year order from a global auto OEM with peak annual revenues of

6 year order from a well- known American company in the non-auto space with peak annual revenues of

~Rs. 1,300 Mln

~Rs. 250 Mln

*Accounts for withdrawal of framework contract worth Rs. 3.0 Bn (intimated on stock exchanges on 26-Jul-22) Represents LOIs / POs for which production has started beyond 1-Apr-2022 or is yet to start. (1) Represents peak annual revenues

7

Update on Electrification

Sansera endeavors to be ahead of the curve in the EV space with a clear emphasis and focus on development of a new mobility world

Wealth of experience in ICE providing solid foundation for growth in the EV space

Strong R&D and design capabilities to meet the requirements of both OEMs and new- age players in the EV space

Broader product portfolio with a higher kit value

Leveraging longstanding relationships with OEMs to increase penetration

Recent wins with marquee global customers demonstrate momentum

12* xEV Customers

7 (2W) 3 (PV) 2 (CV)

18%

2.9%

of orderbook

Of Q2FY23 Sales

Sansera business from key Scooter OEMs

Traditional comps

1,467

Tech Agnostic/ xEV components

1,824

Peak Content per Vehicle (Rs.)

4 Customers

6 Customers

EV Penetration in the Indian Market

› Current EV penetration levels in India are very low (around 2.6% of the total automobile market in India)

› Government of India is targeting 30% EV

Penetration till 2030

*Some customers may appear in more than one category

8

Sales Mix: By End-Use Segments

Sales mix (%)

Q2FY23

Q2FY22

Q1FY23

H1FY23

H1FY22

Auto – ICE

Auto-Tech Agnostic & xEV

Auto-Tech Agnostic

xEV

Non-Auto

TOTAL

80.1%

10.3%

7.4%

2.9%

9.6%

82.0%

79.8%

79.9%

83.0%

6.8%

6.6%

0.2%

8.7%

6.8%

1.9%

9.6%

7.1%

2.5%

5.6%

5.4%

0.1%

11.2%

11.5%

10.5%

11.5%

100.0%

100.0%

100.0%

100.0%

100.0%

FY22

83.0%

6.0%

5.7%

0.4%

11.0%

100.0%

9

Sales Mix: By Geographies

Sales mix (%)

Q2FY23

Q2FY22

Q1FY23

H1FY23

H1FY22

India

Europe

USA

Other Foreign Countries

International

Exports from India

Sweden Sales

77%

16%

4%

3%

23%

18%

5%

64%

22%

11%

3%

36%

28%

8%

71%

17%

9%

3%

29%

22%

7%

74%

17%

6%

3%

26%

20%

6%

62%

24%

11%

3%

38%

29%

9%

FY22

63%

24%

9%

4%

37%

28%

9%

TOTAL

100%

100%

100%

100%

100%

100%

10

Consolidated Profit & Loss Account

Particulars (Rs. in Mln)

Total Revenue

Cost of goods sold (incl power & fuel cost)

Gross Profit

Gross Profit Margin

Employee benefit expenses

Other Expenses

EBITDA

EBITDA Margin

Depreciation and amortisation expense

EBIT

EBIT Margin

Finance Cost

Profit before Tax

Tax

Profit After Tax

Profit After Tax Margin

EPS – Basic (Rs.)

EPS – Diluted (Rs.)

YoY

17%

8%

Q2FY23

Q2FY22

6,361.9

3,939.8

2,422.1

38.1%

767.6

568.1

5,418.2

3,170.0

2,248.2

41.5%

675.2

485.4

1,086.5

1,087.5

0%

17.1%

315.3

771.2

12.1%

143.7

627.5

158.7

468.7

7.4%

8.72

8.53

20.1%

287.7

799.9

14.8%

112.7

687.2

169.6

517.6

9.6%

9.94

9.55

-4%

-9%

-9%

H1FY23

11,691.2

7,024.4

4,666.8

39.9%

1,542.0

1,116.5

2,008.4

17.2%

622.5

1,385.9

11.9%

280.4

1,105.5

288.9

816.6

7.0%

15.24

14.88

H1FY22

9,369.2

5,449.9

3,919.3

41.8%

1,309.8

877.5

1,732.0

18.5%

563.0

1,169.1

12.5%

228.9

940.1

233.8

706.3

7.5%

13.58

13.03

YoY

25%

19%

16%

19%

18%

16%

11

Consolidated Balance Sheet

Assets (in Rs. Mln)

Non - Current Assets

Property Plant & Equipments

CWIP

Goodwill

Intangible assets

Right of use assets

Financial Assets

i) Investments

ii) Loans

iii) Other Financial Assets

Current tax assets (Net)

Other Non Current Assets

Current Assets

Inventories

Financial Assets

(i) Investments

(ii) Trade receivables

(iii) Cash and cash equivalents

(iv) Bank balances other than cash and cash

equivalents

(v) Loans

(vi) Other financial assets

Other Current Assets

Total Assets

Sep-22

14,878.4

11,672.9

1,359.5

331.2

19.1

866.7

104.9

28.9

282.7

28.3

184.1

8,878.1

3,533.6

7.2

4,374.9

279.4

151.7

16.7

239.0

275.7

Mar-22

14,264.8

11,040.8

1,224.3

352.3

24.0

977.3

104.9

15.7

288.0

28.3

209.3

7,944.9

2,776.0

6.0

4,085.6

383.4

119.8

25.2

201.7

347.2

Equity & Liabilities (in Rs. Crs)

Total Equity

Equity Share Capital

Instruments entirely equity in nature

Other Equity

Non Controlling Interests

Non-Current Liabilities

Financial Liabilities

(i) Borrowings

(ia) Lease liabilities

(iii) Other Financial Liabilities

Provisions

Deferred Tax Liabilities (Net)

Other non-current liabilities

Current Liabilities

Financial Liabilities

(i) Borrowings

(ia) Lease liabilities

(iii) Trade payables

(iv) Other financial liabilities

Other Current Liabilities

Provisions

Current tax liabilities (Net)

Sep-22

11,105.0

105.8

0.0

Mar-22

10,353.2

104.3

-

10,863.3

10,129.5

135.9

4,173.1

2,212.3

811.5

67.8

576.0

505.5

119.3

4,479.7

2,335.0

910.6

-

82.2

641.9

509.8

8,478.5

7,376.9

4,468.7

94.8

3,206.1

226.9

299.8

53.5

128.8

4,116.4

102.5

2,653.0

121.8

263.5

111.1

8.5

23,756.5

22,209.7

Total Equity & Liabilities

23,756.5

22,209.7

12

Consolidated Cash Flow Statement

Particulars (in Rs. Mln)

Net Profit Before Tax

Adjustments to reconcile profit before tax to net cash flows:

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Income taxes paid, net

Net Cash from Operating Activities

Net cash used in investing activities

Net cash (used in)/generated from financing activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the year

Effect of exchange differences on translation of foreign currency cash and cash equivalents

H1FY23

1,105.5

921.9

2,027.4

(507.6)

1,519.8

(221.0)

1,298.9

H1FY22

940.1

816.0

1,756.1

(845.5)

910.7

(202.0)

708.7

(1,282.4)

(1,255.7)

(97.4)

(80.9)

383.4

(23.1)

653.7

106.7

365.0

(22.9)

Cash & Cash equivalents at the end of the year

279.4

448.8

Rs in Mln

13

Company Overview

Sansera Engineering Ltd.: Today

An engineering-led integrated manufacturer of complex and critical precision forged and machined components catering to OEMs globally

Well diversified business across……

Ready to capture upcoming opportunities with….

End-user applications

89%

Automotive

11%

Non-automotive

Products

43% 18% 16% 5% 4% 3% 1% 10% Others Connecting rods

Crank shaft assembly

Aerospace products

Gear shifter forks

Integral crankshaft

Rocker arms

Stem comp

Geographies

63%

India

Customers

37%

International

54

Auto

32

Non-Auto

86

Total

26

Countries

Integrated manufacturing facilities

›

Entire manufacturing process being carried out in- house & supported via concurrent engineering capabilities.

› Modular and fungible production lines

Strong in-house engineering capabilities

› High focus on engineering, machine building,

automation

17

Facilities

272

Dedicated team

Professional management

› Distinguished board and experienced management team

› Professional leadership – Group CEO, CFO & COO

Resilient financial performance & strong profitability

H1 FY23 (Rs. Mln)

FY22 (Rs. Mln)

11,691 2,008(17.2%) 20,045 3,491(17.4%)

Sales mix for H1 FY23 Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.

Total Revenues

EBITDA

Total Revenues

EBITDA

15

Toyota Industries Best Targets Achieved Supplier in Delivery of the year 2021

well recognized by vendors

HMSI

Honda Motorcycle & Scooter India Pvt. Ltd.

award for Environmental initiatives

General Motors

30th annual

supplier

of the year 2021

Knorr-Bremse

award for Technology

16

16

Sansera’s Vision

Sansera plans to continue to improve its market share, participate in the growing xEV opportunity and diversify into technology agnostic components and non-auto sectors

Auto-Tech Agnostic & xEV

15%

Auto-Tech Agnostic & xEV

Non-auto

6%

11%

FY22

83%

Auto-ICE

2W-Scooters

3W 1%

7%

HCV

13%

36%

2W-Motorcycles

26%

PV

% reflect percentage of total sales

Non-Auto

25%

Long term (5 years)

60%

Auto-ICE

ICE:

Internal Combustion Engine

17

Leading supplier of precision forged and machined components

The critical applications of Sansera’s products and stringent quality requirements, act as a strong competitive advantage for the company

Indian market

International market (Connecting Rods)

Sansera’s Market Share (LV)

Two wheelers

Light Vehicles

Light Vehicles

Largest supplier of connecting rods, rocker arms and gear shifter forks

Largest supplier of connecting rods and rocker arms

Commercial Vehicles

Top 10 supplier of connecting rods

1.1%

0.9%

2.3%

1.9%

1.6%

1.8%

Connecting Rods Rs. 11 bn

12% FY21 – 26 CAGR

Rocker arm Rs. 5 bn

10% FY21 – 26 CAGR

Connecting Rods(LV) 289 mn units

3% FY21 – 26 CAGR

Gear shifter forks Rs. 3 bn

13% FY21 – 26 CAGR

Crankshaft Rs. 17 bn

13% FY21 – 26 CAGR

Connecting Rods(CV) 35 mn units

1% FY21 – 26 CAGR

e z i s

t

e k r a M

CY15

CY16

CY17

CY18

CY19

CY20

Sansera’s Market Share (CV)

3.3%

3.0%

3.1%

3.0%

1.7%

0.9%

Stem Comp Rs. 8 bn

14% FY21 – 26 CAGR

Source: Prospectus, Ricardo report, CRISIL report.

CY15

CY16

CY17

CY18

CY19

CY20

18

Emphasis on diversification for four decades

Over the decades, adaptation and diversification into wider market has been the key for Sansera’s growth

Received first purchase order from Maruti Udyog Limited

1 8 9 1

Received investment from Monsoon India Inflection Equity Fund

1 9 9 1

8 0 - 4 0 0 2

Commenced supply of machined connecting rods to Kirloskar Toyota

4 1 0 2

Commenced operations of the dedicated facility for Aerospace

7 1 0 2

Commissioned • biggest plant in Bidadi,

Bengaluru

• manufacturing lines for

aluminium forged products

Commenced supplies of suspension products

0 2 0 2

• Commenced development of components for PV braking assembly and BEV (Battery Electric Vehicle) drivetrain Signed lease for a new facility (>3x current facility area) for aerospace & defence Secured business for machining of aircraft engine casings

•

•

Incorporated by Mr. S. Sekhar Vasan

6 8 9 1

Joining of 3 promoters (F R Singhvi, Unni Rajgopal & D Devaraj)

6 0 0 2

Commenced operations at new plants in Haryana, Maharashtra and Uttarakhand

3 1 0 2

Investment by Client Ebene and CVCIGP II Employee Ebene

5 1 0 2

Acquired Mape Sweden, European manufacturer of engine components for HCV

9 1 0 2

Commenced development of : suspension and drive train • components for a domestic e-2W OEM

• multiple drive train

components for Hybrid PVs and steering components for PVs

• braking assembly & chassis

components for HCVs

1 2 0 2

19

Wide range of product offerings: Auto

Sansera has a track record of developing complex and critical precision engineered components for the automotive sector over multiple decades. Most of the products are sold directly to OEMs in finished (forged and machined) condition, resulting in significant value addition by us

Two - Wheelers

Passenger Vehicles

Commercial Vehicles

Product Offerings

Sales Mix FY22

H1FY23

Roller RA

Integral CR

Crankshaft

GSF

Fractured CR

Split CR

Fractured CR

Split CR

Gear Shifter Fork

Stem Comp (Suspension)

Aluminium forged Comp. (Chassis)

Integral Crankshaft

Rocker Arm (DLC)

Gear Shifter Fork

Integral Crankshaft (Braking System)

Cabin Tilt System Comp. (Chassis)

Motorcycles 37%

38%

Scooters 10%

14%

28%

27%

13%

10%

Key Customers (Indian and Global)

Indian › 9 out of Top 10 Two

Wheeler OEMs

Global › European, US and

Japanese premium Two Wheeler OEMs

Indian › Major Japanese and European PV OEMs Indian multinational automotive manufacturing company

›

Global › Leading North American and European PV OEMs

› Global Tier 1

Supplier

Indian › Leading Indian and European OEMs › Global supplier of

actuation and motion control systems

Global › Leading European, Japanese and US OEMs

› Global suppliers of braking systems

Note: The remaining 1% of the auto segment’s revenues was contributed by Three-Wheelers in both FY22 and Q1FY23

CR: RA:

Connecting Rods Rocker Arms

20

Wide range of product offerings: Non-Auto

Over the years, the company leveraged its existing capabilities to manufacture precision components for several non- automotive sectors and established its presence in the aerospace, off-road and agriculture sectors

Aerospace

Off-road

Agriculture

Others

Product Offerings

Sales Mix FY22

H1FY23

Speciality Seating

Aerostructure

Equipment - Housings

Fractured Split

Gear Shifter Fork

Fractured CR

Cam Shaft

Cargo Systems

Actuation parts

Lighting parts

Crankshaft

Rocker Arms

3%

4%

3%

2%

Pump Barrel

3%

3%

Fractured CR

Split CR

Integral Crankshaft (Stationary Engine)

Crankshaft

Pump Barrel

2%

1%

Key Customers (Indian and Global)

Indian › Leading

Indian Tier 1 supplier

Global › Global Tier 1 suppliers › Global European aircraft

OEM

› Global North American

aircraft OEM

› Global Recreational Vehicle OEM

›

›

Indian arm of a global supplier of fuel injection systems Indian arm of a global engine-based fuel and air management systems manufacturer

› Global OEM of Earth Moving

›

Equipment Indian arm of a global manufacturing and supply chain management co.

› Subsidiary of a leading global power

tools manufacturer

› Global marine engine manufacturer

21

CR:

Connecting Rods

Consistent track record of product development

New products coupled with addition of product capabilities laying a strong foundation for future growth

GSF (2W)

Split Connecting Rod (PV)

Fractured Connecting Rod (PV)

GSF (PV)

Integral Crankshaft (2W)

Suspension parts (2W)

Non-Auto (Agri, Industrial)

Cabin Tilt System (HCV)

Non-Auto/ (Engg. & Capital Goods)

Braking Assembly parts (PV, HCV)

Drive train parts (2W EV)

Fiscal year

1987

1997

2004

2006

2008

2010

2014

2016

2017

2018

2019

2020

2020

2021

2021

2022

Rocker Arms (PV)

Connecting Rod (2W)

Crankshaft (2W)

Aerospace parts

Drive Train / Chassis parts (PV)

Connecting Rod, Valve Bridge (HCV)

Aluminium Forged Parts (2W)

Drive train components (Hybrid EVs)

Rotor Parts (2W EV)

Steering parts (PV)

Engine Casing (Aerospace)

Suspension parts (Off-road) / Power transmission (Non-auto)

22

Diverse reach and customer base

Within India, relationship with 9 out of top 10 2 W OEMs

Globally, relationship with 6 out of top 10 LV OEMs

Globally, relationship with 3 out of top 10 MHCV OEMs

30+ years of relationship with the Leading PV OEM in India

Others

4%

USA

9%

Europe

24%

Sales Mix (FY22) (1)

Customer Relationship

Customer 1

17%

Others

46%

12%

Others

Integral CSFT Aerospace

10%

Stem comp

3%

4%

1%

GSF

5%

4+ Years

40%

CR

43%

20+ Years

20%

63%

India

7%

Customer 5

Customer 4

Customer 2

10%

Customer 3

CSFT Assembly

16%

8%

By Geography

By Customer

18%

RA

By Product

40%

10+ Years

Top 20 Customers

A wide portfolio of products across 70+ product families catering to auto and non-auto customers across 26 countries

Source: Ricardo report, CRISIL report. 1. Based on sale of products

23

Strong in-house engineering capabilities (1/2)

272 personnel working on design, engineering, machine building, automation & technical support functions

In- House Machine Building Capabilities

Automated Cells

Internal grinding machines

4 station special propose machines

Double disc grinding machines

Vertical honing machines

Highlights

› 1,000+ CNC Machines built in-house

› 49 machines manufactured in 2021-22

› 57 dedicated personnel in machine

building division

Outcomes

› Capital and operating efficiency

› Reduced reliance on third party

suppliers

› High responsiveness to customer needs

51

58

Automation Capabilities

34 Dedicated personnel in the automation division

Automated fracture and bolt assembly cells

Robotic final inspection cells

175 Robots installed across all facilities

Outcomes

›

›

Increased Productivity

Increased Cost Control

› Consistent Product Quality

69

70

d e

i l

p p u s

s e

i l i

m a

f

t c u d o r P

FY19

FY20

FY21

FY22

24

Strong in-house engineering capabilities (2/2)

Improved Productivity, Increased Automation, Reduced Manpower

Case Study: Evolution of fractured connecting rod (CR) lines over six generations over 8 years

Manpower / Shift

“Takt” Time(1)”

(# / shift)

23

(seconds)

18

15

13

Output per day

(# of pieces)

4200

4500

5200

12

8

CR Line - 1 (Dec-10)

CR Line - 4 (Feb-17)

CR Line - 6 (Jan-19)

CR Line - 1 (Dec-10)

CR Line - 4 (Feb-17)

CR Line - 6 (Jan-19)

CR Line - 1 (Dec-10)

CR Line - 4 (Feb-17)

CR Line - 6 (Jan-19)

Interchangeable capacity and product mix across all products categories (auto and non- auto) optimising productivity & efficiency

Designed and built automated gantry lines for suspension component - stem comp

Plan to deploy the automation capabilities across other manufacturing lines

Note: 1. takt time – average time between the start of production of one piece and the start of production of the next piece.

25

Integrated manufacturing facilities

Sansera has 16 plants under operation across India, 1 in Sweden and 1 under construction in India All its facilities are located in close proximity to the client production facilities

Manesar (Gurgaon) (1)

Pantnagar (1)

Shorter product development and delivery times

Mehsana (1)

Chakan (Pune) (1)

Greater control over key inputs & processes

Streamlined production processes

Fungible production lines Interchangeable capacity across sectors (auto & non- auto) and various product lines therein

Bengaluru and Bidadi (9)

Tumkur (3)

Better capex management

Lower inventory

Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.

26

Environment & Social Governance (1/2)

27

Environment & Social Governance (2/2)

Environment

› Waste Management

› Rejuvenation of Bommasandra Lake

›

›

Scholarship programme

Science kit support

›

Infrastructure support to Begur school

Education

› Renovation of Gurubhavan

›

School bus donated to Shivanahalli Vivekananda Ashram

› 5S implementation in School

› Distributed food packets

during COVID-19

› Donated Oxygen Concentrators

› Donated beds and ECG

› Encouraged blood donation

Healthcare

Machine to Corona Primary Health Care Centre

› Provided Oxygen

Concentrators & Bipap Donation

by Sansera employees

›

Supported Government Primary Healthcare centre

28

Way Forward

Clear path to accelerate growth

Diversify into tech-agnostic products and cater to the xEV opportunity

Consolidate and strengthen global market share in existing portfolio and diversify into technology agnostic products

Continue to leverage existing capabilities to diversify further into non-automotive businesses and expand addressable market

Retain and strengthen technological leadership through continued focus on engineering capabilities

30

Diversify into tech-agnostic products and cater to the xEV opportunity

Technologically agnostic and EV / Hybrid components developed / under development for each segment

2W / e-2W

PV / Hybrid / B-EV

CV

Drive Train Components

Suspension Components

›

›

LoI from a leading electric 2W OEM in FY21

SOP commenced from Oct-21

Steering parts

Drive Train Components

Braking System Components

Chassis Components (Cabin Tilt System)

Braking System Components

›

Supply of steering components started from Jun-21

› Developing proto samples for a

leading global BEV OEM

› Drivetrain components SOP

started from Jun-22

›

Supply of braking assembly components to start in FY23

›

›

Supply of cabin tilt system components started in FY21

Supply of braking system components started from Jul-22

Phase 1 of setting up a dedicated facility for hybrid and electric components within our existing Plant at Bengaluru has completed. Production lines for 2W-xEV and hybrid-PVs have begun mass production in Q4FY22

31

Leverage existing capabilities to diversify into non- automotive businesses & expand addressable market

Engine Casing

Suspension Components

Common Rail

›

›

Supply of machined engine casings to Aerospace segment started from FY22

Supply of suspension components for off-road started in FY22

Key Initiatives

Aerospace / Defence

› Dedicated facility for aerospace & defence under construction in Bengaluru

›

Secured orders from defence sector for applications in radar system and space telescope

› Developed multiple components including CR for industrial engines & construction equipment

Other sectors

› Developed precision components for power transmission & railways segment

›

Supply power tool components used in residential & industrial sectors

32

Strengthen technological leadership

Sansera focuses on providing high value-added and technology-driven components to capture shifts in customer preferences as well as evolving regulatory requirements, such as heightened emissions control standards. Further, this would increase opportunities for us to become a preferred supplier to our customers and consolidate our position

Leveraging engineering know-how in product design

Continued focus to enhance engineering capabilities

Multiple Drive Train Components

Hybrid and BEV Transmission Systems

Business from Global Japanese OEM

Commissioned Aluminium Forging Lines

Capitalise on growing demand for light-weight and environmentally friendly components

`

Five-axis Machining Capabilities

Aluminium Forged

Intricately shaped components for ICE and Electric 2W

GSF with Moly Coating

Finger Followers with diamond like coating

For Multiple Global OEMs

PVs

For machining large structural components for aerospace

Fatigue Testing Machine

Enhance product reliability, durability and performance

33

Historical Performance

Historical Performance Highlights

Total Revenues

EBITDA

PAT

18.6%

16.3%

18.8%

17.4%

17.2%

6.0%

5.4%

7.0%

6.6%

7.0%

16,408

14,731

15,724

20,045

11,691

3,055

2,952

2,407

3,491

2,008

981

799

1,319

1,099

817

Rs in Mln

Margins

FY19

FY20

FY21

FY22

H1FY23

FY19

FY20

FY21

FY22

H1FY23

FY19

FY20

FY21

FY22

H1FY23

Net Debt / Equity

ROCE(%)

ROE(%)

0.82

0.74

18.5%

15.5%

15.8%

15.4%

0.55

0.57

0.56

11.4%

15.3%

11.0%

13.2%

13.7%

13.8%

FY19

FY20

FY21

FY22

H1FY23

FY19

FY20

FY21

FY22

H1FY23

FY19

FY20

FY21

FY22

H1FY23

ROCE : TTM EBIT / Average Opening & Closing Capital Employed (Equity + Net debt) ROE : TTM PAT / Average Opening & Closing Networth

35

Consolidated Statement of Profit and Loss

Particulars (Rs. in Mln)

Total Revenue

Cost of goods sold (incl power & fuel cost)

Gross Profit

Gross Profit Margin

Employee benefit expenses

Other Expenses

EBITDA

EBITDA Margin

Depreciation and amortisation expense

EBIT

EBIT Margin

Finance Cost

Exceptional items

Profit before Tax

Tax

Profit After Tax

Profit After Tax Margin

EPS – Basic (Rs.)

EPS – Diluted (Rs.)

FY22

20,045.3

11,895.9

8,149.4

40.7%

2,773.6

1,885.0

3,490.8

17.4%

1,197.0

2,293.8

11.4%

510.1

-

1,783.7

464.8

1,318.9

6.6%

25.27

24.36

FY21

15,723.6

9,167.2

6,556.4

41.7%

2,137.5

1,466.8

2,952.1

18.8%

1,016.8

1,935.4

12.3%

473.9

-

1,461.5

362.8

1,098.6

7.0%

21.02

20.55

FY20

14,731.4

8,811.1

5,920.3

40.2%

2,134.2

1,379.4

2,406.7

16.3%

939.0

1,467.7

10.0%

580.9

-

886.8

87.7

799.1

5.4%

15.63

15.28

FY19

16,408.1

9,869.4

6,538.7

39.9%

2,174.1

1,309.8

3,054.8

18.6%

757.5

2,297.2

14.0%

512.8

134.9

1,649.5

668.9

980.6

6.0%

18.73

18.31

Note: Restated financial statements for FY19, FY20 and FY21

36

Consolidated Balance Sheet

Assets (in Rs. Mln)

Non - Current Assets

Mar-22

Mar-21

Mar-20

Mar-19

Equity & Liabilities (in Rs. Mln)

Mar-22

Mar-21

Mar-20

Mar-19

14,264.4

12,461.6

11,899.8

11,213.7

Total Equity

10,353.2

8,887.4

7,768.6

6,945.2

Property Plant & Equipments

11,040.8

10,000.1

9,421.3

8,890.7

Share Capital

104.3

93.9

93.9

93.9

CWIP

Goodwill

Other Intangible assets

Right of use asset

Financial Assets

i) Investments

ii) Loans

iii) Other Financial Assets

Tax assets for current taxes (net)

Other Non-Current Assets

Current Assets

Inventories

Financial Assets

(i) Investments

(ii) Trade receivables

1,224.3

352.3

24.0

977.3

104.9

15.7

288.0

28.3

209.3

604.2

358.4

19.2

892.4

36.9

284.5

14.1

27.1

224.7

683.4

323.6

25.7

873.0

36.9

267.1

34.8

29.3

204.7

488.6

324.2

32.5

896.6

-

257.3

34.2

62.5

227.0

7,945.3

6,827.3

6,382.6

2,776.0

2,485.7

2,389.2

6,241.2

2,434.6

6.0

5.6

3.5

5.3

4,085.6

3,129.8

2,591.2

2,712.4

Instruments entirely equity in nature

-

105.0

105.0

105.0

Other Equity

Non-Controlling Interest

Non-Current Liabilities

Financial Liabilities

10,129.5

8,583.6

7,482.9

6,655.0

119.3

105.0

86.8

91.4

4,479.7

3,923.8

3,622.9

4,226.6

(i) Non-current borrowings

2,335.0

1,876.5

1,718.3

2,133.8

(ii) Lease liabilities

910.6

810.3

788.6

805.7

(iii) Other Financial Liabilities

Non-current provisions

Deferred Tax Liabilities

Other Non Current Liabilities

Current Liabilities

Financial Liabilities

-

-

82.2

641.9

509.8

151.8

618.0

467.2

11.0

126.9

552.3

425.9

76.9

85.8

703.0

421.3

7,376.9

6,477.7

6,890.9

6,283.1

(i) Current borrowings

4,116.4

2,552.3

3,554.1

3,043.1

(iii) Cash and cash equivalents

383.4

365.0

(iv) Bank balances other than cash and cash

equivalents

(v) Loans

(vi) Other Financial Assets

Other Current Assets

Total Assets

119.8

286.4

25.2

201.7

347.2

29.3

193.6

331.9

600.1

116.4

236.5

445.7

239.3

76.7

(ii) Lease liabilities

(iii) Trade payables

(iv) Other financial liabilities

-

-

Other Current Liabilities

256.5

516.4

Current Provisions

Current tax liabilities (net)

102.5

110.9

96.9

86.5

2,653.0

2,270.5

1,729.0

1,865.6

121.8

263.5

111.1

8.5

1,236.7

1,218.3

1,002.4

207.6

164.5

137.6

99.1

0.6

98.5

29.5

65.4

82.5

22,209.7

19,288.8

18,282.4

17,454.8

Total Equity & Liabilities

22,209.7

19,288.8

18,282.4

17,454.8

37

Note: Restated financial statements for FY19, FY20 and FY21

Consolidated Cash Flow Statement

Particulars (in Rs. Mln)

Net Profit Before Tax

Adjustments to reconcile profit before tax to net cash flows:

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Income taxes paid, net

Net Cash from Operating Activities

Net cash used in investing activities

FY22

1,784.6

1,713.0

3,497.6

(937.8)

2,559.9

(429.2)

2,130.7

FY21

1,461.5

1,375.4

2,836.9

54.1

2,891.0

(330.6)

2,560.4

FY20

886.8

1,522.7

2,409.4

257.6

2,667.0

(254.9)

2,412.1

FY19

1,649.5

1,266.6

2,916.1

(316.6)

2,599.5

(415.0)

2,184.5

(2,553.1)

(1,394.7)

(1,770.9)

(2,376.1)

Net cash (used in)/generated from financing activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the year

Effect of exchange differences on translation of foreign currency cash and cash equivalents

465.5

43.0

365.0

(24.5)

(226.3)

600.1

(8.8)

(1,392.0)

(289.2)

Cash & Cash equivalents at the end of the year

383.4

365.0

352.0

239.3

8.8

600.1

144.7

(48.1)

343.4

(56.0)

239.3

Note: Restated financial statements for FY19, FY20 and FY21

38

Annexure

Experienced Professional Management Team

Sansera is an employee driven, professionally managed organization. Majority of the senior management has been with the Company for more than 10 years and have led the expansion of our product families and customer base, resulting in business growth and diversification

B R Preetham Group CEO

Vikas Goel CFO

Praveen Chauhan COO

› 30+ years of experience and has oversight across all areas of business including developing and maintaining relationships with suppliers

›

›

› Bachelor of Engineering from Bangalore University

30+ years of experience

Previously worked with Ingersoll-Rand, Stanley Black & Decker, Weir and Motherson Sumi

› Member of ICAI; Associate member of ICWAI;

Bachelor of commerce from the University of Delhi

› 36+ years of experience, ~18 years at Sansera

› Previously worked with Maruti Udyog Limited

› Diploma in Automobile Engineering from Board of

Technical Education Delhi

Satish Kumar Head Business Development

Vidyadhar Janginamath Head Engineering Design

Rajesh Kumar Modi Head Legal & Secretarial

›

›

›

›

›

35+ years of experience in Operations, Business Development. 24+ years at Sansera

Bachelor of Engineering from Bangalore University

P R Suresh Head Corp. Training & Quality system

30+ years of experience in the fields of quality systems management

Supervises the corporate training and quality systems department

Bachelor of Engineering from University of Mysore and an MBA from Indira Gandhi National Open University

›

›

›

›

›

29+ years of experience, 15+ years at Sansera

Responsible for the engineering department

Bachelor of engineering from Karnataka University

›

›

23+ years of experience in the legal and secretarial field, 4+ years at Sansera

Bachelor of law and MBA from Barkatullah University, Bhopal, Member of ICSI

Rakesh S B Head Aerospace Division

30+ years pf experience in various fields including sales, marketing and aerospace engineering, 6+ years at Sansera

Bachelor of engineering from University of Mysore

40

Distinguished Board of Directors

S Sekhar Vasan Chairman and Managing Director

F R Singhvi Joint Managing Director

Raunak Gupta Non-Executive, Nominee Director

› 40 years of experience in the field of manufacturing

› 40+ years of professional experience with 15+ years

› Director at TRG Advisors

of precision products, with Sansera since incorporation

at Sansera guiding automobile and aerospace business

› PGDM from IIM Bengaluru and Bachelor of

› Previously with M/s. Singhvi, Dev & Unni (C.A.)

Technology from IIT Madras

Chartered Accountant

› Previously with Citi VC, Motilal Oswal, Rabo India

Securities and Infosys

› PGDCM from IIM Calcutta and Bachelor of

Technology from IIT Delhi

Muthuswami Lakshminarayan Non-Executive, Independent Director

Revathy Ashok Non-Executive, Independent Director

› Previously, held the position of MD at Bosch and

Harman International

› Masters’ degree in Technology from IIT Bombay

› Previously with Tishman Speyer & CFO of Syntel

› Awarded ‘Faculty medal for Best Performance’ –

Habitat & Environmental Studies

› PGDM from IIM Bengaluru

Samir Purushottam Inamdar Non-executive Independent Director

› Over 40 years of experience

› Previously, held President & CEO position of major

businesses of General Electric in South Asia and as the CEO & Managing Director of Tyco Electronics in South Asia, for over 11 years

› PGDM from IIM Calcutta and Bachelors in

Mechanical Engineering from Mumbai University

41

2-Wheeler | Scooters

ICE scooter

Electric scooter

Suspension parts

Engine parts

STEM COM STEERING

Rocker arms

Connecting Rod

Crankshaft

Suspension Parts

Drive Line Parts

42

2-Wheeler | Motorcycle

EV ROTOR PARTS

ENGINE PARTS

TRANSMISSION PARTS

ALUMINIUM FORGED PARTS

STEERING, SUSPENSION & CHASSIS PARTS

Rocker Arms

Connecting Rod

Finger Follower

Crankshaft Assembly

Balancer Shaft

Gear Shifter Fork

Arm Relay

Step Holder Rider

Step Holder Rider

Boss Handle

Step Folder Pillion

43

4-Wheeler | ICE

ENGINE PARTS

TRANSMISSION PARTS

STEERING, SUSPENSION AND CHASSIS PARTS

Rocker Arms

Connecting Rod

Housing Shift Lever

Shaft Control

Shifter Fork

Spacer Input Gear

Shaft Propeller

Attachment Lower Ball Joint (LH & RH)

Piece 5R Shift

Adapter

Sprocket

Housing Shift Lever-1

Housing Shift Lever-2

Rocker Shaft

Lever Shift

Arm Shift

Piece Back Shift

Input Shafts

44

4Wheeler | xEV

DRIVELINE PARTS

BEV

Clutch Assembly Part

HYBRID PV

TRANSMISSION PARTS

Pinion Differential Drive

Motor Generator Shaft

Gear Counter Driven

Gear Motor Counter Drive

45

Commercial Vehicle

Tilt cabin system

BRAKING ASSEMBLY PARTS

Crankshaft

Guide Bush

ENGINE PARTS

TRANSMISSION PARTS

Connecting Rod

Bracket

Support Injector

Valve Bridge

Gear shifter Fork

TRANSMISSION Intermediate Ring

46

AERO STRUCTURE PARTS

CARGO PARTS

Aerospace

LIGHTING PARTS

SEATING PARTS

ENGINE AUXILLARY

ENGINE PART

EQUIPMENT HOUSING PART

47

Off Road

ATV

ENGINE PARTS

Crankshaft Assembly

Connecting Rod Balancer Shaft

SUSPENSION PARTS

TRANSMISSION PARTS

Taper Housing

Bearing Housing

48

Agricultural and Other Non-Automotive Applications

AGRICULTURE

ENGINEERING & CAPITAL GOODS

Cam Shafts

Pump Housing

Connecting Rod

Common Rail

Body Flange

Valve Bridge

Integral Crank

Hub

POWER TOOLS

OTHERS (POWER TRANSMISSION)

Hand Tools (Residential and Industrial Applications)

Fuse cap

49

Thank You

For more information please contact: Company:

Investor Relations Advisor:

Sansera Engineering Limited CIN: L34103KA1981PLC004542 Mr. Rajesh Kumar Modi Company Secretary & Compliance Officer Email id: rajesh.modi@sansera.in

Strategic Growth Advisors Pvt Ltd. CIN: U74140MH2010PTC204285 Shikha Puri / Dharmik Kansara Email id: shikha.puri@sgapl.net / dharmik.k@sgapl.net Tel No: +91 9819282743 / +91 7208179323