TALBROAUTONSE24 April 2023

Talbros Automotive Components Limited has informed the Exchange about Investor Presentation

Talbros Automotive Components Limited

Talbros Automotive Components Ltd. w w w . t a l b r o s . c o m

24th April, 2023

The Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers, Dalai Street, Fort Mumbai - 400 001

The National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051

Scrip Code - 505160

Company Code - TALBROAUTO

Sub: Investor Presentation for Investor & Analyst Meet - April 2023

Dear Sir/ Madam,

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith Investor Presentation for Investor & Analyst Meet - April 2023.

Investor Presentation

The https://www.talbros.com.

also available on

the website of

the Company at

This is for your information and records.

Thanking you,

Yours Sincerely For Talbros Automotive Components Limited

Seema Narang Company Secretary

< Faridabad ®

regd. Office : 14/1, mathura road, faridabad-121003 haryana, india . ph: + 91 129 2275434/35/36/37 . fax : +91 129 2277240, 2272263 . e-mail: talbros@talbros.com CIN : L29199HR1956PLC033107

talbn

Driving FutureLeadership

Investor & Analyst Meet April 2023

Safe Harbor

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Talbros Automotive Components Limited (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.

Talbros 2.0

Over 6 Decades of experience in Auto Component manufacturing

Diversified Auto Component Player Across Two Wheelers, PVs, CVs Off-Highway and Farm Equipments

Electric Vehicles – Supply to EV’s (Major OEM’s globally)

Diversified Product Portfolio – Gasket & Heat Shields, Forgings, Suspension Systems, Anti-vibration Products & Hoses

Wide Client Base; Orders from over 30 OEMs across products and geographies

International Technology Tie-ups including 3 JVs for Best-in-Class Products

Consistent Dividend Pay-out over 50 years

One of the Most Hedged Auto Component Players

Financial Overview (At Group Level)

FY18

FY20

FY23e

% of Sales

GP %

% of Sales

GP %

% of Sales

GP %

Gasket & Heat Shield

43%

293

44%

39%

265

45%

42%

423

43%

Forgings

17%

115

45%

19%

134

52%

22%

215

52%

Marelli Talbros Chassis Systems* (MTCS)

16%

109

37%

20%

137

37%

20%

210

35%

Talbros Marugo Rubber** (TMR)

45%

44%

38%

Nippon Leakless Talbros^ (NLT)

17%

118

33%

15%

106

32%

40%

* M T C S i s a 5 0 % J o i n t V e n t u r e w i t h M a r e l l i Su s p e n s i o n Sy s t e m s S p A * * T M R i s a 5 0 % J o i n t V e n t u r e w i t h M a r u g o R u b b e r ^ N L T i s a 4 0 % J V w i t h N i p p o n L e a k l e s s C o r p o r a t i o n ( J a p a n )

Rs. 676 crores

Rs. 688 crores

Rs. 1,016 crores

Strong Board of Directors

Mr. Naresh Talwar

Mr. Umesh Talwar

Mr. Varun Talwar

Mr. Anuj Talwar

Mr. Navin Juneja

Mr. Vidur Talwar

Chairman

Vice Chairman & MD

Joint Managing Director

Director & Group CFO

Non-Executive Director

Mr. Deepak Jain Independent Director

Mr Anil Kumar Mehra Independent Director

Mr. Amit Burman Independent Director

Mr. Tarun Singhal Independent Director

Mrs. Priyanka Gulati Independent Director

Mr. Ajay Kumar Vij Independent Director

Led by Focused Product wise Business Heads

Senior Management Team

Business Heads

Mr. Anuj Talwar

Joint Managing Director

Mr. Suresh Sharma President – Gasket & Heat Shield Business

Mr. Vivek Singh President – Forgings Business

Mr. Ashish Gupta CEO - MTCS

Mr. Rajiv Verma Business Head - TMR

Mr. Navin Juneja Director & Group CFO

Target Based Incentive structure created for all Business Heads

Revenue + EBITDA Targets given to all Business Heads

GASKET & HEAT SHIELD BUSINESS

Presented by Mr. Suresh Sharma President – Gasket & Heat Shield Business

Gasket & Heat Shield Business - Snapshot

Revenue from Gasket Business

GP%

44%

43%

+13%

700

+8%

423

293

FY18

FY23e

FY27e

13% CAGR

over the next 4 years

Increased Revenues from Heat Shield Business (~Rs. 90 crores p.a. from the Heat Shield Business)

Increased Focus on Exports (From 10% in FY18 to ~22% in FY27e)

FY18

FY23e

10%

90%

17%

83%

FY18

FY23e

FY27e

22%

FY27e

78%

Exports

Domestic

Diversified Segment Portfolio (PV’s to increase from 2% in FY18 to ~11% in FY27e)

FY18

12%

38%

43%

FY23e

12% 9%

30%

41%

FY27e

15%

24%

11%

41%

2&3 Wheelers

Agri & Off Highway

Others

In Rs. Cr.

Gasket & Heat Shield Business - Snapshot

Large Order Book for New Products

MSIL – Heat Shields Rs. 14 Crs. p.a.

Kia & Hyundai Heat Shields Rs. 13.5 Crs. p.a.

Kamaz –Gasket with Electrical Controls Rs. 12 Crs. p.a.

Cummins – Beagle CHG Rs. 11 Crs. p.a.

Escort Kubota - CHG Rs. 9 Crs. p.a.

Volvo Europe Heat Shield Rs. 7 Crs. p.a.

Kawasaki Motors USA- Secondary Gasket Rs. 5 Crs. p.a.

Ashok Leyland – Secondary Gasket Rs. 4 Crs. p.a.

and many more…

Orderbook span across 5 years

Strong Clientele

JLR – EV Heat Shield Rs. 2 Crs. p.a.

Innio - Powertrain Rs. 2 Crs. p.a.

BAJAJ

TATA MOTORS

IN/l /XRUTI SUZUKI

~50% Market share in Gaskets & 3x to the nearest competition

and many more…

Way Ahead – Gasket & Heat Shield Business

Expanding into new geographies

New Generation Heat Shields

EV Business

Non Automotive Segment

Russia HCV / LCV Segment

Japan 2W, LCV / HCV Segment

Additional line for Nimbus Heat Shields

MSIL, Hyundai, Kia - Heat Shields

Gaskets – Battery Casing, Convertor and Controller units

Heat Protector for JLR

Gaskets - Power Generation, General Purpose Engines

FORGINGS BUSINESS

Presented by Mr. Vivek Singh President – Forgings Business

Forgings Business - Snapshot

Revenue from Forgings Business

GP%

45%

52%

+23%

500

+13%

215

115

FY18

FY23e

FY27e

23% CAGR

over the next 4 years

Increased Focus On EV’s (Revenue of Rs. ~70 Crs. in FY27e with CAGR of 60%)

Increased Focus on Exports and expanding geographies (From 47% in FY18 to ~63% in FY27e)

+60%

FY23e

FY27e

51%

49%

FY23e

63%

37%

FY27e

Exports

Domestic

FY18

47%

53%

FY18

Increased Revenues from Agri & Off -Highway (Agri & Off-Highway to increase from 37% in FY18 to ~43% in FY27e)

FY18

37%

34%

19%

FY23e

4% 1%

37%

46%

12%

FY27e

1% 0%

31%

43%

25%

2&3 Wheelers

Agri & Off-Highway

Others

In Rs. Cr.

Forgings Business - Snapshot

Large Order Book for New Products

JCB UK – Dump End/ Eye End Rs. 75 Crs. p.a.

Meritor (North America) – End Yokes Rs. 50 Crs. p.a.

TATA Motors – Front Hub Rs. 20 Crs. p.a.

Sona Comstar – Gear Blanks Rs. 19 Crs. p.a.

Dana Italy – Ring Gears Rs. 17 Crs. p.a.

SIAP Italy– Gear Blanks Rs. 15 Crs. p.a.

BMW Car (Germany) – Ring Gear & Shaft) Rs. 13 Crs. p.a.

Other Customers Rs. 8 Crs. p.a.

and many more…

Orderbook span across 5 years

Strong Clientele

DANA

AUTOMOTIVE

JAGUAR

LAND*^ TROVER A

Strong Presence In Overseas Market & Supplier to Top Tier 1 Companies

and many more…

Way Ahead – Forgings Business

Focus on Technology Advancement

Product Focus

Market Focus

New Plant & Equipment

Building capabilities on Ring Rolling and material Gathering

Leveraging our capabilities to convert Casting into Forging

Increasing digitalization and IOT

Adding heavy weight parts from existing 15 Kgs. upto 30 Kgs.

Entry into new geography – North America and Mexico

Adding up Forging equipment's in existing setup

With increase depth of manufacturing & Sub-Assemblies as finished goods to OEM’s & Tier-I

Targeting customers from CV’s, Off Highway, Mining and Construction equipment ’s

Building new machine shop in existing premises for 200+ machines, Phase-I will be ready by July ’23

Marelli Talbros Chassis Systems (MTCS)

Presented by Mr. Ashish Gupta CEO - MTCS

Marelli Talbros Chassis Systems (MTCS) - Snapshot

Revenue from MTCS Business

GP%

37%

35%

+35%

700

+14%

210

109

FY18

FY23e

FY27e

35% CAGR over the next 4 years

Increased Focus on Exports (From 2% in FY18 to ~36% in FY27e)

Increased Focus On EV’s (Revenue of Rs. ~191 Crs. in FY27e with CAGR of 131%)

Improving EBITDA Margin Profile (From 7.9% in FY18 to ~14.0% in FY27e)

Exports

15%

85%

98%

FY18

FY23e

Domestica

FY27e

36%

64%

+131%

191

FY18

FY23e

FY27e

+610 bps

10.5%

14.0%

FY23e

FY27e

7.9%

FY18

MTCS – Leaders in Control Arms and Links Business in India

In Rs. Cr.

Note : MTCS is a 50% Joint Venture with Marelli Suspension Systems SpA

Marelli Talbros Chassis Systems (MTCS) - Snapshot

Large Order Book for New Products

TATA – NG EV 04 Cradle Assembly Rs. 34 Crs. p.a.

TATA – NG 04 Lower Control Arm Assembly Rs. 32 Crs. p.a.

MSIL – Y8 Upper and Lower Link Assembly Rs. 26 Crs. p.a.

MSIL – NG ED Lower Control Assembly Rs. 24 Crs. p.a.

JLR – NG EV BIW Assembly Rs. 20 Crs. p.a.

TATA – NG 54 Lower Control Assembly Rs. 8 Crs. p.a.

TATA – NG 51 Lower Control Assembly Rs. 8 Crs. p.a.

TATA – NG EV 45 Lower Control Assembly Rs. 7 Crs. p.a.

Orderbook span across 5 years

Strong Clientele

TATA MOTORS

MARUTI SUZUKI

MARELLI

J A G U A R

and many more…

^ BAJAJ

and many more…

Way Ahead - Marelli Talbros Chassis Systems (MTCS)

Expanding Product Portfolio

Increasing Customer Base

Covering Additional Markets

Growth in Existing Segment

Enter into large Suspension products - RTB Axle/ FCM assemblies as FSS supplier. There-by increasing car content from Rs. 1500/- to Rs. 6000/- Target of Rs. 80 Crs. p.a.

Exports to Marelli for its VA/VE & Insourcing Project– Lower Control Arm for its EMEA & NAFTA markets Target Rs. >100 Crs. p.a.

Expand manufacturing footprint in upcoming PV manufacturing hub - Setting up new plant in Gujarat to tap additional market & exports

Continue to grow and increase SOB with existing customers in current portfolio of Suspension arms, links & BIW parts. Target Rs. >100 Crs. p.a.

Talbros Marugo Rubber (TMR)

Presented by Mr. Rajiv Verma Business Head - TMR

Talbros Marugo Rubber (TMR) - Snapshot

Revenue from TMR Business

GP%

45%

38%

+22%

180

+15%

FY18

FY23e

FY27e

22% CAGR

over the next 4 years

Increased Focus On Biofuel Hoses (E-20 compliant fuel filler, breather and purge hose)

+65%

FY18

FY23e

FY27e

Improving EBITDA Margin Profile (From 8% in FY18 to ~13% in FY27e)

+500 bps

13%

FY18

FY23e

FY27e

TMR - A Global Leader In supply of Anti Vibration Product and Hoses

In Rs. Cr.

Note : TMR is a 50% Joint Venture with Marugo Rubber

Talbros Marugo Rubber (TMR) - Snapshot

Large Order Book for New Products

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*“""(cid:127) ***

MSIL –FKM /ECO Fuel Hose Rs. 29 Crs. p.a.

MSIL- FKM/ECO Breather Hose Rs. 8 Crs. p.a.

MSIL- FKM/ECO Purge Hose Rs. 13 Crs. p.a.

MSIL - Air Hose Rs. 6 Crs. p.a.

MSIL – Body Mounting Rs. 6 Crs. p.a.

Orderbook span across 5 years

Strong Clientele

MSIL- Trailing and Leading arm bushing Rs. 11 Crs. p.a.

and many more…

MARUTI SUZUKI DAIMLER

I S U Z U

HONDA

Ashok Leyland

and many more…

Way Ahead - Talbros Marugo Rubber (TMR)

Expanding Capacities

Expanding product portfolio

Growth in existing Segment

Increasing Customer Base

Covered area planned to increase from 50,000 Sq ft to 80,000 Sq ft. in FY24

Capex of Rs. 10 Crs. is planned in next 2 years to meet customers requirements

Engine mounting and silicon hose for automotive application

Suspension arm bushing and body mountings ,Mounting muffler and hangers, Intercooler hoses and air hoses

Targeting other OEM’s Such as Tata Motors, Mahindra and JLR

Nippon Leakless Talbros (NLT)

Presented by Mr. Sushant Sindwani Marketing Head - TACL

Nippon Leakless Talbros (NLT) - Snapshot

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Automotive Components

Revenue from NLT Business

GP%

33%

40%

118

-6%

+9%

120

High Margin Business (From 20% in FY18 to ~25% in FY27e)

+500 bps

20%

22%

25%

FY18

FY23e

FY27e

FY18

FY23e

FY27e

9% CAGR

over the next 4 years

Strong Clientele

5 Hero

HONDA

NLT – Gasket Manufacturer for 2 Wheelers in India

In Rs. Cr.

Note : NLT is a 40% Joint Venture with Nippon Leakless Corporation

TALBROS 2.0 – THE WAY FORWARD

Mr. Anuj Talwar Joint Managing Director

Mr. Navin Juneja Director & Group CFO

Capex Plans - TACL

Utilization Levels (FY23e)

Addl. Capex to reach Revenues of FY27e

Gasket & Heat Shield

Forgings

Marelli Talbros Chassis Systems* (MTCS)

85%

77%

73%

Talbros Marugo Rubber** (TMR)

AV – 85% Hose – 80%

Rs. 50 Crores

Rs. 60 Crores

Rs. 80 Crores

Rs. 10 Crores

Nippon Leakless Talbros^ (NLT)

65%

Rs. 5 Crores

To be funded by Internal Accruals

Capex of Rs. 25-30 Crs. per annum

These amounts will be funded by respective Companies through internal accruals and some borrowings

Increased Focus on Electric Vehicles (EVs)

Revenue Breakup (FY23e)

Revenue Breakup (FY27e)

13.0%

6.0%

15.0%

7.0%

18.0%

4.0%

11.0%

15.0%

2.0%

39.0%

5.0%

15.0%

12.0%

38.0%

2 & 3 Wheeler

Passenger Vehicle

EVs

MHCV

LCV

Agri & Off Highway

Others

Talbros 2.0 (At Group Level)

Revenue (FY23e)

% of Sales

Growth (CAGR)

Revenue (FY27e)

% of Sales

Gasket & Heat Shield

42%

423

13%

32%

700

Forgings

22%

215

23%

500

Marelli Talbros Chassis Systems* (MTCS)

20%

210

Rs. 1,016 crores

35%

32%

700

Rs. 2,200 crores

Talbros Marugo Rubber** (TMR)

22%

180

Nippon Leakless Talbros^ (NLT)

120

Talbros 2.0 (At Actuals as per Economic Interest)

Revenue (FY23e)

% of Sales

Growth (CAGR)

Revenue (FY27e)

% of Sales

Gasket & Heat Shield

51%

423

13%

41%

700

Forgings

26%

215

23%

30%

500

Marelli Talbros Chassis Systems* (MTCS)

13%

105

Rs. 818 crores

35%

21%

350

Rs. 1,688 crores

Talbros Marugo Rubber** (TMR)

22%

Nippon Leakless Talbros^ (NLT)

Talbros 2.0 – The Way Forward

Increased Export Sales

Increased Margins

Higher Returns

Comfortable Debt Profile

25% in FY23e to 35% + in FY27e

EBITDA Margins to increase from ~14% to ~15-16% by FY27e

RoCE to increase to 20% + going ahead

Total Debt to remain under Rs. 100 crores

D R I V I N G F U T U R E L EA D E RS H I P

Financial Snapshot - Historical

Particulars (Rs. In crores)

Total Revenue from Operation

EBITDA

EBITDA Margin

EBIT

Share of Profits from JVs

Profit before Tax

Profit After Tax

PAT Margin %

Particulars (Rs. In crores)

Total Equity

Long Term Borrowings

Short Term Borrowings

TOTAL DEBT

Creditors

Property, Plant & Equipment

Inventories

Debtors

Cash & Cash Equivalents

9M FY23

476.5

66.7

14.0%

48.8

8.3

48.9

38.7

8.1%

Sept-22

329.8

6.5

93.0

99.5

161.8

159.7

130.9

162.4

4.2

FY22

584.9

83.2

14.2%

60.3

7.8

56.4

44.9

7.7%

Mar-22

301.9

7.6

81.4

89.0

153.1

153.3

114.3

151.5

5.4

FY21

453.2

64.6

14.3%

41.7

5.5

51.8

39.1

8.6%

Mar-21

247.5

14.1

88.7

102.8

149.4

145.4

102.1

155.0

11.8

FY20

391.0

43.1

11.0%

23.9

7.9

13.5

12.2

3.1%

Mar-20

197.9

20.1

121.1

141.2

105.6

149.2

107.9

125.2

7.6

THANK YOU !

For further information, please contact:

Company :

Investor Relations Advisors :

talbrfofe

Automotive CompooentsV

geostrategic Growth Advisors

Talbros Automotive Components Ltd. CIN: L29199HR1956PLC033107

Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285

Ms. Seema Narang seema_narang@talbros.com

Mr. Deven Dhruva/ Ms. Hinal Kothari deven.dhruva@sgapl.net/ Hinal.Kothari@sgapl.net

www.talbros.com

Tel: +91 98333 73300 / +91 99301 33428 www.sgapl.net

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