Sona Blw Precision Forgings Limited has informed the Exchange about Investor Presentation
Adding a New Pillar of Growth
09 January 2023
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.
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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 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.
© Sona BLW Precision Forgings Limited (Sona Comstar). Reproduction and distribution of this Presentation without the permission of Sona Comstar is prohibited.
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Software and Sensors are becoming critical in the EPIC automotive world (Electrified-Personalized-Intelligent-Connected)
Fully Autonomous Vehicle
500+
Lines of code in millions
Modern Car
100
61
Large Hadron Collider
Microsoft Office 2013
50
44
F-35 Fighter Jet
24
Android OS
12
US Military Drone
3.5
Sona Comstar IMCM
2
Space Shuttle
0.4
Avg. iPhone app
0.01
Data Source: www.informationisbeutiful.net, Deloitte Research 2018
3
Next Phase in Our Long Term Strategy
One Vision
To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders.
Non-EV Focused
EV Focused
E-AV Focused
4
With NOVELIC, we intend to grow in the area of autonomous/ connected in our technology roadmap
Autonomous /Connected
Electric
Motors for Bots and Industrial Automation
ADAS Sensors
GaN Inverter
Liquid Cooled Inverter
Integrated Controller with DC- DC Converter
High Voltage Traction Motors
High Voltage Inverter
Magnet-free Motors, EMSM and SRM designs
Integrated P4 e-Axle
Predictive Active Suspension Integrated Motor Controller Module
Low Voltage Inverter
Mid-mount Drive Motor (PMSM)
Hub Wheel Motor (BLDC)
Belt-driven Starter Generator (BSG)
Rigid e-Axle
Axial Flux Motors
Reduction Drive Unit
EV Rotor Shaft
EDL
Helical Gears
Independent suspension e- Axle
Epicyclic Set
Park Gear
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
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Diff Gears
Starter Motors
Spool Gear
Diff Assembly
Net Spiral Bevel Gears
Active Biased Differential
Non-ferrous Parts
Compelling Strategic Rationale for Transaction
Rare profitable high-tech, fast growing company, in $43 bn ADAS Sensors market1, with ~27% net profit margin
Unique and patented mmWave radar technology is the best solution for in-cabin sensing
Accretive to management bandwidth with shared cultural commitment to innovation, technology and profitability
Full vertical integration from chip and sensor design to signal processing software allows partnership across the value chain – auto OEMs, AV makers, Tier-1s & chip manufacturers
Accretive to Sona Comstar’s EPS and provides significant growth opportunities over medium-term
Note: 1. In 2030 as per McKinsey Report
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ADAS Sensors to be the largest segment in the total automotive sensors market; all types of sensors to co-exist
ADAS/AD sensors market size1 USD billions
Split of market by sensor types in ADAS/AD1 USD billions
63
3 8
9
43
43
2 7
9
25
29
2 5
10
12
2020
2025
2030
43
9
8
12
14
2030
13
5
4
4
2020
0
ADAS/AD
Powertrain
Chassis
Body
Radar
LiDAR
Camera
Others
Note: 1. Source: McKinsey
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NOVELIC has been profitable every year since its inception
9.3
6.1
3.5
3.8
3.1
1.8
2.5
1.7
0.2
0.0
0.3
0.0
0.6
0.7
0.1
0.1
0.4
0.6
1.0
0.9
CY 2013
CY 2014
CY 2015
CY 2016
CY 2017
CY 2018
CY 2019
CY 2020
CY 2021
Numbers in EUR mn
Revenue
PAT
Covid-19 impacted year
CY 2022 (est)
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Unique and patented mmWave radar technology is the best solution for in-cabin sensing
In-cabin sensing to become an essential safety requirement
NOVELIC’s mmWave radar technology is the best solution for in-cabin sensing
Children and pets left behind in locked cars have resulted in thousands of deaths around the world due to heatstroke
Government regulations and car safety assessment guidelines mandate to have child presence detection (CPD) in new car models
Euro NCAP 2023 requires child presence detection for 5-star rating; by 2025 might make it an obligation
High Accuracy
• Detects life presence, child presence and
seat occupancy
• Works in any lighting conditions (vs. camera) Sees behind seats, in the footwell space and • around the vehicle also
Low Cost
• • •
Lower cost compared to LiDAR Requires less sensors vs. cameras Supports seat occupancy detection (SOD), removing the need of existing weight sensors and wiring harness (saves ~€10-20 per seat)
Privacy Protection
• Anonymous detection resulting in no privacy
concerns unlike cameras
Timeline for CPD Implementation1
2021
2022
2023
2024
2025
Guidelines from
ASEAN NCAP (Southeast Asia)
ANCAP (Australia), NHTSA (USA)
EU-NCAP (Europe)
USDT (USA)
OEM Initiatives
Note: 1. Source: Infineon Presentation
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NOVELIC’s Products & Technology
YouTube Link: https://youtu.be/cklc4ti2vyA
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Accretive to management bandwidth with shared cultural commitment to innovation, technology and profitability NOVELIC’s operations will continue to be led by its founders, ensuring continuity while leveraging Sona Comstar’s scale and customer access
Darko Tasovac, CEO Operations, Organization, Finance Co-Founder
Veljko Mihajlović, CTO Products, Organization, Engineering Co-Founder
Dr. Veselin Branković, CSO Business Development, Sales, IPs Co-Founder
Phase 1 Capability Building
Phase 2 Platforms & IP Creation
Phase 3 Products & Solutions
160+ Employees
130+ Engineers
10 PhDs
10 Patents
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Vertically-integrated and modular ADAS solution for the new EPIC value chain
Customer Mobility Interface Provider
Powertrain Solutions Provider
OEM
Integrated Autonomous Solutions Provider
Electro- mechanical Modules Supplier (SW+HW)
Tier 1 Supplier
Autonomous Modules Supplier (SW+HW)
Radar Boards & Antenna Design Embedded & Application Software
• • • Artificial Intelligence • Machine Learning Algorithms •
Zonal architecture and multi-sensor systems
Electrical & Mechanical Components Supplier
Tier 2-n Supplier
Autonomous Components Supplier
Electric Vehicle Solutions
Traditional Auto Supply Chain
Autonomous Driving
.. or any other radar chip manufacturer
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EPS Accretive with significant growth opportunities
Transaction Structure
Post-transaction Shareholding1
Sona Comstar
€40.5 mn
NOVELIC Founders
Sona Comstar
NOVELIC Founders
54%
46%
• NOVELIC is valued at pre-money Enterprise Value1 of €64.5 mn and post-money EV1 of €75.0 mn
•
Implied transaction valuation is 26x CY22 Estimated PAT
• Total consideration will be €40.5 mn with staggered payment structure of 60:20:20 (On Closing:12M:24M)
• Sona Comstar will fund the transaction primarily from its existing resources
• Expected to close by Mar-23, subject to customary closing conditions
• Acquisition is expected to be EPS Accretive for Sona Comstar from Year 1
Note: 1. Subject to closing adjustments
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Q&A
Appendix
All types of ADAS sensors will co-exist in Autonomous Vehicles
No. of sensors in a vehicle to increase as the level of autonomy increases1
Split of market by sensor types in ADAS/AD1 USD billions
Level 2
Level 3
Level 4/5
Camera
Long-Range Radar
Short-/Medium-Range Radar
Long-Range LiDAR
Short-Range LiDAR
Total Sensors
5
1
2
-
-
8
5
1
4
2
-
8
4
4
4
4
12
24
Level 2
Level 3
Level 4/5
Note: 1. Source: McKinsey
43
9
8
12
14
2030
13
5
4
4
2020
0
Radar
LiDAR
Camera
Others
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Infineon has partnered with NOVELIC for in-cabin monitoring system
https://www.infineon.com/cms/en/partners/design-partners/novelic/
https://www.linkedin.com/posts/infineon-technologies_izb2022- incabinsensing-automotiveinnovation-activity-6985569733550993408-vZh2/
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Features of mmWave radar based In-cabin monitoring systems
1
2
3
4
Life Presence Detection – LPD
• Detects of human presence inside the car • 2023 onwards EU-NCAP will award points for having LPD feature • Can detect behind the seats or under the blanket unlike cameras
Child Presence Detection – CPD
• Detects life & classify it between an adult and a child with only one sensor for a 5-seater car • 2025 classification of child (CPD) is mandatory in EU-NCAP •
Low power consumption at system level and excellent thermal management
Seat Occupancy Detection – SOD
• Detects and localize reliably all 5 passengers in a 5-seater car with only one sensor • Occupant localization and classification can be used for optimizing seatbelt reminder systems
and airbag deployment
• Cost saving of €10-20 per seat by removing weight sensors and wiring harness
Intrusion Alert & Proximity Alert
• Can detect unauthorized access reliably if someone enters through a window, sunroof, or
trunk while the car is locked
• Can constantly monitor the nearby surroundings of the locked car and detect if someone is
trying to break-in
Source: Infineon
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