SONACOMSNSE27 July 2023

Sona Blw Precision Forgings Limited has informed the Exchange about Investor Presentation

Sona BLW Precision Forgings Limited

Date: - 27th July, 2023

BSE Ltd. Regd. Office: Floor - 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400 001. BSE Scrip Code: 543300

National Stock Exchange of India Ltd. Listing Dept., Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051 NSE Scrip: SONACOMS

Subject: Investor Presentation for the quarter ended 30 June 2023

In compliance with Regulation 30 read with Para 15(a) of Part A of Schedule III and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Investor Presentation inter-alia, encompassing an overview of the Company, its operations and Unaudited Standalone and Consolidated Financial Results for the quarter on ended 30 June 2023, subjected to Limited Review.

Kindly take the same on record.

Thanking you

Thanking you, For SONA BLW PRECISION FORGINGS LIMITED

Ajay Pratap Singh Vice President (Legal), Company Secretary and Compliance Officer

Enclosed: As above

Q1 FY24 Earnings Presentation

27 July 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.

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.

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.

Our Management

Mr. Kiran Manohar Deshmukh Group CTO

Mr. V. Vikram Verma CEO, Driveline Business

Mr. Sat Mohan Gupta CEO, Motor Business

Mr. Rohit Nanda Group CFO

Mr. Vivek Vikram Singh MD & Group CEO

Mr. Amit Mishra Head, Investor Relations

Q1 FY24 Financial Performance Highlights

7,322 mn | 24%

2,034 mn | 43%

1,120 mn | 48%

Revenue | YoY Growth

EBITDA | YoY Growth

PAT | YoY Growth

27.8% EBITDA Margin

15.3% PAT Margin

1,843 mn | 13%

BEV Revenue | YoY Growth

26% Q1 FY24 Revenue Share

from BEV

Update on our Strategic Priorities

Net formed differential gears coming out of our forging press

Update on our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

Sizeable and Increasing Presence in EVs

26%

1,843 mn

13%

Q1 FY24 Revenue Share

Q1 FY24 BEV segment

Q1 FY24 BEV revenue

from BEV

revenue

YoY growth

42 (10+10+22)1

EV Programs1 awarded across

26 customers as at the end of

Q4 FY23

46 (10+13+23)1

EV Programs1 awarded across

27 customers as at the end of

Q1 FY24

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 fully ramped up production + # of programs in ramp-up + # of programs not yet in production)

Three new EV order wins have strengthened our position both in the new segments and with existing customers

Differential Assembly

Hub-Wheel Traction Motor

Mid-Drive Traction Motor & Controller

For Class 5 Electric CVs

For Electric 2-Wheelers

For Electric OHVs

New Customer

Existing Customer

North American New Age OEM of Electric CVs

Indian OEM of Electric and ICE 2-Wheelers

Indian OEM of Electric OHVs and 3-Wheelers

₹ 4,050 mn

addition in our orderbook

₹ 3,600 mn

addition in our orderbook

₹ 900 mn

addition in our orderbook

Q4 FY25

Start of Production

Q4 FY24

Start of Production

Q4 FY24

Start of Production

Electrification: Our Approach to Market

Power Rating

> 600 kW

300 – 600 kW

100 – 300 kW

40 – 100 kW

15 – 40 kW

5 – 15 kW

<5 kW

Driveline Solutions

Core Strength: High Torque, High Power Density

Commercial

Personal

EV Products

Motor Solutions

Core Strength: Low Voltage, High Power Density

Personal

Commercial

Epicyclic Geartrain

Spool Gears

EDL

Final Drive assembly

Differential assemblies

Intermediate Gears & Input/Rotor Shaft

Differential gears

SRM Motor

Controllers

E-Axles

Drive Motors

Hub-wheel Motors

In serial production or in orderbook

To be added between CY23-25

Category added in orderbook during Q1FY24

46 EV programs across 271 different customers

No. of programs customers

23 10

Programs in fully ramped-up production

Programs in ramp-up or not yet in production

Programs for geartrain components

Programs for traction motors, IMCM and PHEV starters

Programs for e-Axle

North America 6 Customers 3 14

Europe2 5 Customers 1 5

6 2

Asia 4 Customers 2 2 3 1

India 16 Customers 4 7

16 11

+x denotes the change during Q1 FY24

Notes: 1. 2.

2 customers are present in more than one geography Europe geography includes the UK

Our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

Our net order book1 grows to ₹220 billion (8.2x FY23 revenue)

215 bn

Orderbook at the end of Q4 FY23

# of Programs

# of Customers

8 bn

Orders consumed from matured and ramp-up programs during Q1 FY24

EV Rs. 171 Billion (78%)

63% 18 8

13 bn

Orders added for programs won in Q1 FY24

220 bn

Orderbook at the end of Q1 FY24

Non-EV Rs. 49 Billion (22%)

9% 11 9

6% 7 7

6% 28 11

8% 23 9

8% 49 17

2W &3W

CV &OHV

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.

A significant order win from a global recreational OHV maker marks our entry into a new segment of mobility

For Recreational Off-Highway Vehicles

Final Drive Differential Assembly

New Customer

Global OEM of Recreational OHVs

₹ 4,300 mn

addition in our orderbook

Q2 FY25

Start of Production

Our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

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 25% in FY21 to 11% in Q1 FY24

FY21

FY22

FY23

Q1 FY24

14%

27%

34%

25%

26%

31%

18%

26%

21%

38%

15%

26%

22%

41%

11%

Battery EV

Micro-hybrid / Hybrid

Power source Neutral

ICE Dependent

Diversified Revenue Mix

By Geography

20%

43%

FY23

29%

5% 1%

23%

43%

Q1 FY24

28%

By Product

4% 1%

15%

32%

11%

37%

FY23

2.5%1%

Q1 FY24

23%

21%

23%

22%

By Vehicle segment

FY23

69%

15%

12%

Q1 FY24

OHV

E2W/E3W

72%

15%

10%

2.5%

Our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

We are adding High Voltage Traction Motors and Inverters to our product offerings Autonomous /Connected

Electric

GaN Inverter

Integrated Controller with DC-DC Converter

Liquid Cooled Inverter

High Voltage Inverter

Motors for Bots and Industrial Automation

High Voltage Traction Motors

Magnet-free Motors, EMSM and SRM designs

Integrated P4 e-Axle

ADAS Sensors

Predictive Active Suspension Integrated Motor Controller Module

Low Voltage Inverter

Mid-mount Drive Motor (PMSM)

Hub Wheel Motor (BLDC)

Input/Rotor Shaft

Intermediate Gears

Axial Flux Motors

Reduction Drive Unit

Belt-driven Starter Generator (BSG)

Independent suspension e-Axle

Rigid e-Axle

Net Spiral Bevel Gears

EDL

Park Gear

Non-ferrous Parts

Diff Gears

Starter Motors

Diff Assembly

Spool Gear

Epicyclic Set

Active Biased Differential

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

Equipmake’s spoke architecture is a proven technology making their motors amongst the best in the world in power density

Conventional Architecture

Spoke Motor Architecture

Power Density (kW/kg) Comparison1 – Equipmake vs Others

Magnets

Equipmake HTM-3500

Voith VEDS HD

Sinovation HC2U45PWT

Dana TM4 SUMO HD HV 3500

ZF CeTrax

2.0

1.3

1.2

1.1

Steel Rotor Hub

Magnetic Steel Laminations

Water channels for cooling

Aluminium Rotor Hub

TSA TME 43

0.5

Advantages of Spoke Architecture & Patented Rotor Design

Non-magnetic Aluminium Rotor Hub

Integrated Water Channels for Effective Rotor Cooling

Automated Process for Concentrated Winding

Effective Use of Magnets

Helix CTSM242

Yasa P400

Dana TM4 MV275

Equipmake APM-200

Phi 301

Turntide AF130

Brusa HSM1

4.6

2.9

1. Data Sources: Company Websites of respective motor makers

8.3

6.7

5.8

5.5

We have licensed their well-tested and delivered products for selected markets and will support them with manufacturing also

Tested and Delivered their technology to many customers

Scope and Terms of our Agreement with Equipmake

Products Covered

EV Powertrains (Power output: 100 kW to 440 kW) • HTM 3500 motor & inverter • APM 200 motor & inverter

Target Application

First Group (UK)

Repowered 12 buses; Secured another order for a double-deck bus

Scope Distribution

London Routemaster

Customer trials of an Equipmake converted fully-electric London Routemaster

Emergency One (UK)

Bespoke EV drivetrains for Emergency One Fire Trucks; Secured further orders

Agrale (Argentina)

Zero-emission powertrain fitted bus finished pre-service trails; started in-service trials also

• • • •

•

Electric Passenger Cars Electric Buses Electric CVs Electric OHVs including tractors

Equipmake to provide validated design

Sona Comstar has exclusive rights to sell these products in the licensed territory (India, Thailand, and select South Asian markets)

Sona Comstar will manufacture these products in India and supply to its customers in the licensed territory and to Equipmake for other markets

License Fee & Royalty

• One-time fee for each motor • Variable royalty payment

European Electric Hypercar

Long-term contract to supply ASIL-D compliant motor drive inverter

Target SOP

• Production is targeted to start in 2025

Q1 FY24 Financial Update

Our final drive gears

Q1 FY24 Financials

1 Revenue (Rs. mn)

BEV

YoY: 24%

7,322

5,892

1,627

1,843

EBITDA (Rs. mn)

EBITDA Margin (%)

PAT (Rs. mn)

PAT Margin (%)

YoY: 43%

2,034

1,425

24.2%

27.8%

YoY: 51%

YoY: 48%

1,120

1,142

758

12.9%

15.3%

15.6%

Q1 FY23

Q1 FY24

Q1 FY23

Q1 FY24

Q1 FY23

Q1 FY24 Q1 FY24 (adj)

o BEV Revenue grew by 13% and constitutes

26% of total revenue

o Non-BEV Revenue grew by a robust 28% while light vehicle sales in our top-3 markets (North America, India, and Europe) grew by 15%

o EBITDA Margin is higher by ~3.6% largely due to the positive impact of product mix and operating leverage

o PAT for Q1FY24 has been adjusted for to expenses

exceptional diligence work for acquisition

o Adjusted

PAT margin

improvement

reflects improved EBITDA margin

Notes: 1.

Revenue includes net gain from foreign exchange

Key Ratios

VA/Employee cost 6.4

5.7

5.1

5.2

RoCE (%)

RoE (%)

6.4

28.8%

36.1% 32.4% 30.4% 31.4%

30.4%

34.6% 36.3%

26.6% 27.1%

Mar-20 Mar-21 Mar-22 Mar-23 Jun-23

Net Debt to EBITDA

Working Capital Turnover

Fixed Asset Turnover

3.9

4.2

4.4

4.6

5.0

4.7

3.9

3.8

0.76

0.43

(0.01)

(0.12)

(0.23)

Mar-20 Mar-21 Mar-22 Mar-23 Jun-23

Note:

1) 2)

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 & mutual fund investments / 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

Q&A

New Product Development Discussion

Appendix

Inside view of our manufacturing plant at Manesar, Haryana

One Vision To become one of the World’s most Respected and Valuable Auto Technology companies for our Customers, Employees & Shareholders.

Our story so far…

Phase - 1

• 18 Customers • 2 Plants • 1 Product

Revenue in INR millions

FY99 – Q1FY24 annualized Avg EBITDA margin 26.6% Revenue CAGR 35.0% Industry CAGR 9.2%

FY99– FY11 Avg. EBITDA margin 21.5% Revenue CAGR 50.6% Industry CAGR 16.1%

Phase - 2

• 22 Customers • 2 Plants • 2 Products

Phase - 3

Phase - 4

• Acquisition of Comstar • 47 Customers (37+10) • 9 Plants (5+4) • 10 Products (5+5)

• Started journey as a public company • 71 customers • 9 plants • 17 products

29,328

Q1FY24 Annualized

26,756

FY12– FY16 Avg. EBITDA margin 25.0% Revenue CAGR 10.6% Industry CAGR 1.7%

21,306

FY17– Q1FY24 annualized Avg. EBITDA margin 27.2% Revenue CAGR 29.7% Industry CAGR 4.3%

15,663

12,201

6,992

6,088

5,033

7,332 Q1FY24

9 9 Y F

120

223

183

221

0 0 Y F

1 0 Y F

2 0 Y F

3 0 Y F

399

4 0 Y F

697

910

1,135

1,348

1,174

1,492

2,207

2,807

2,616

3,309

3,456

3,653

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

3 2 Y F

Notes: 1. 2.

FY20 onwards financials include Comstar Industry data source: SIAM

4 2 Y F 1 Q

) . n n a (

Guided by Values

Agility

34.5%

Growth

5-year Revenue

CAGR

Vitality

Integrity

Frugality

26.8%

Margins

5-year Avg.

EBITDA

>25%

Returns ROE

Each Year

(FY19-FY23)

Vertically-integrated and modular electro-mechanical and autonomous solutions provider 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

Established Global Presence to Serve Customers Locally

USA Location

Capacity3

Tecumseh, MI 1 mn starter motors

Ypsilanti, MI

Belgium

Genk

China Location Capacity3

Hangzhou 1 mn starter motors

7 of the world’s top 10 PV OEMs1a

3 of the world’s top 10 CV OEMs1b

Germany

Cologne

7 of the world’s top 10 tractor OEMs1b

Irapuato 1 mn starter motors

India

Location Capacity3

Mexico Location Capacity3

5 of the world’s top 15 EV OEMs1c

4 of the Indian top 15 Indian e-2-Wheeler OEMs1d

9 3

1 8

Manufacturing Plant

R&D Centre

Tool & Die Shop

Warehouse

Gurugram 44.6 mn gears

Manesar

2.0 mn differential assemblies

Pune

11.8 mn gears

Chennai

3.8 mn starter motors 0.4 mn traction motors

Hosur, Sanand, Rudrapur, Mehsana

Notes: 1. 2.

Data Source: a) BofA Global Automobiles Report; b) Ricardo Report; c) EV-Volumes; d) Vahan Database; Company Analysis Capacity as of March 2023

Product Summary

Belt Starter Generator

Starter Motor

Differential Bevel Gears

Passenger Vehicles

Starter Motor

Off Highway Vehicles

Differential Assembly

Spiral Bevel Gears

Differential Assembly

Reverse Idler

Portal Axle Gears

Differential Bevel Gears

Starter Motor*

Inter-Axle Gear Set

Coupling/ Sleeves

Differential Bevel Gears

Commercial Vehicles

Epicyclic Geartrain/Gears

* Product under development

Product Summary

Electric Cars

Electronically Locking Differential (EDL)

7 5 6

Epicyclic Geartrain

Spool Gears

Integrated Motor Controller Module (for Predictive Active Suspension)

Traction Motor*

Differential Assembly

Electric Commercial Vehicles

Intermediate Gears

Controller*

Differential Bevel Gears

4 5

Electric 2-Wheelers

Hub Wheel Motor

Electric 3-Wheelers

Drive Motor

Controller

1 2

* Product under development

Input/Rotor Shaft

e-Axles

Revenue share from BEV has grown 20x over 5 years, with absolute BEV revenue growth at 42x

Revenue from BEV (%)

BEV Segment Revenue (Rs. mn)

20x

14%

1.3%

2.0%

25%

26%

5,042

42x

7,372

Q1FY24 Annualized

6,707

2,057

174

234

1,843

Q1FY24

FY19

FY20

FY21

FY22

FY23

Q1 FY24

FY19

FY20

FY21

FY22

FY23

FY24

Market Shares for Differential Gears and Starter Motors

Global Market Share of Differential Gears1

Global Market Share of Starter Motors1

While we continue to dominate the Indian market for Differential Gears

CY19

4.5%

CY20

5.0%

CY21

6.3%

CY22

7.2%

CY19

2.5%

CY20

3.0%

CY21

4.6%

CY22

4.1%

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 dated Feb 2021

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