SONACOMSNSE23 January 2025

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

Sona BLW Precision Forgings Limited

Date: - 23rd January, 2025

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 and nine months ended on 31st December, 2024.

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 overview of the Company, its operations and unaudited Standalone and Consolidated Financial Results for the quarter and 31st December, 2024.

inter-alia, encompassing an

nine months ended on

Kindly take the same on record.

Thanking you

For SONA BLW PRECISION FORGINGS LIMITED

Ajay Pratap Singh Group General Counsel, Company Secretary and Compliance Officer

Enclosed: As above

Q3 & 9M FY25 Earnings Presentation

23 January 2025

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.

forward-looking

statements are not guarantees of

Certain matters discussed in this presentation may contains certain forward-looking statements concerning the Company’s future business prospects and business profitability. Such 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. V. Vikram Verma CEO, Driveline Business

Mr. Sat Mohan Gupta CEO, Motor Business

Mr. Praveen Chakrapani Rao Group CTO

Mr. Rohit Nanda Group CFO

Mr. Vivek Vikram Singh MD & Group CEO

Mr. Amit Mishra Head, Investor Relations

Business Performance Highlights

Complete Drivetrain of an Electric Vehicle

Q3 FY25 Financial Performance Highlights

8,680 mn | 12%

2,342 mn | 3%

1,512 mn | 14%

Revenue | YoY Growth

EBITDA | YoY Growth

PAT1 | YoY Growth

27.0% EBITDA Margin

17.4% PAT Margin2

3,291 mn | 48%

BEV Revenue | YoY Growth

39% Q3 FY25 Product Revenue

Share from BEV

Notes: 1. 2.

PAT includes an impact of ₹43 million in exceptional expenses related to potential acquisition opportunities PAT margin percentage calculated from PAT including non-controlling interest

9M FY25 Financial Performance Highlights

26,861 mn | 17%

7,403 mn | 13%

4,371 mn | 19%

Revenue | YoY Growth

EBITDA | YoY Growth

PAT1 | YoY Growth

27.6% EBITDA Margin

16.2% PAT Margin2

CY23

CY24

CY23

CY24

8.1% 8.8% Global Market Share of Differential Gears3

4.2% 4.4% Global Market Share of Starter Motors4

Notes: 1. 2. 3. 4.

PAT includes an impact of ₹126 million in exceptional expenses related to potential acquisition opportunities PAT margin percentage calculated from PAT including non-controlling interest As per CRISIL’s market size estimates for CY23 & CY24 Across light vehicles; as per CRISIL’s market size estimates for CY23 & CY24

Update on our Strategic Priorities

Tool and Die Shop in our Gurgaon Plant

Update on our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

Sizeable and Increasing Presence in EVs

36%

9,291 mn

52%

9M FY25 Product Revenue

9M FY25 BEV segment

9M FY25 BEV revenue

Share from BEV

revenue

YoY growth

56 (13+14+29)1

EV Programs1 awarded across

32 customers as at the end of

Q2 FY25

57 (15+14+28)1

EV Programs1 awarded across

32 customers as at the end of

Q3 FY25

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)

We have won another program for differential assembly for electric passenger vehicles for the Indian market

Differential Assembly

For Electric Passenger Vehicles

Existing Customer

Indian OEM of PVs, CVs, OHVs, and EVs

₹ 3,000 mn

addition in our orderbook

Q2 FY27

Start of Production

Our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

Our net order book1 stands at ₹232 billion (7.3x FY24 revenue)

231 bn

Orderbook at the end of Q2 FY25

6 bn

Orders consumed from matured and ramp-up programs during Q3 FY25

7 bn

Orders added for programs won in Q3 FY25

232 bn

Orderbook at the end of Q3 FY25

EV Rs. 176 Billion (76%)

Non-EV Rs. 56 Billion (24%)

# of Programs

# of Customers

56% 20 10

10% 13 11

10% 9 9

8% 18 11

6% 24 8

10% 61 20

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.

Our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

Diversified Product Revenue Mix – By Powertrain

Battery EV increasing as 36% of our revenue continues to be our dominant and secular theme

Our pure ICE dependence continues to reduce steadily going from 18% in FY22 to 9% in 9M FY25

FY22

FY23

FY24

9M FY25

25%

26%

31%

18%

26%

21%

38%

15%

29%

24%

37%

10%

36%

20%

35%

Battery EV

Micro-hybrid / Hybrid

Power source Neutral

ICE Dependent

Diversified Revenue Mix

By Geography

26%

40%

By Product

5% 1% 1%

10%

24%

FY24

28%

6% 0.4%

23%

43%

9M FY25

28%

32%

24%

2% 0.2%

9M FY25

30%

28%

20%

By Market segment

FY24

70%

14%

10%

E2W/E3W

Non-Automotive

9M FY25

72%

10%

Semiconductors & Embedded SW

1.0%

1.5%

Our Strategic Priorities

Electrification

Global Market Significance

Diversification

Technology

Our board has approved $4 million investment in ClearMotion’s current fundraising round

Our Rationale for Investment

1. Differentiated Technology

ClearMotion’s active suspension technology controlled by our BLDC motor-controller- based actuator has 5x lower latency compared to the other existing alternatives available in the market

2. Successfully commercialized technology

for a huge market opportunity For an immediate TAM of $14 billion for the premium car segment (E-class and above), ClearMotion has successfully commercialized this technology, and it is already under production for Nio ET9

Scalable Actuator Architecture

Chassis Control Software

Buffer

Gerotor

BLDC Motor

Software & Integrated ECU

Actuator Body

Activalve

3. Partnering in ClearMotion’s success

ASMC Software

Forming a closer collaboration to partner in their success as an investor and supplier both

In Q3 we commercialized one product and added two new future products to our technology roadmap

Connected

Zone Monitoring Sensors

Intelligent

Non-ferrous Parts

Robotics/EVTOL Gearbox

Lightweight Differential

Active Bias Gears

Park Gear

Steering Bevel Box

Spiral Bevel Gears

Final Drive Differential Assembly

EDL

LSD

Spool/Epicyclic Gears

Reduction Drive Unit

Electric

HV e-Axle

Input/Rotor Shaft

Intermediate Gears

HV Motor

Integrated HV Motor Controller

HV Inverter

Integrated Radar Sensor

Bot Motor

Magnetless Motor

Non-auto Mobility Motors

GaN Inverter

Integrated Drive Motor Controller

Liquid Cooled Inverter

Differential Assembly

Mid-drive Motor

Integrated Hub Motor Controller

360˚ Short-range Radar Sensors

In-cabin Sensors

Suspension Motor Controller

Differential Gear

Starter Motor

Hub-wheel Motor

LV Inverter

Personalized

Legacy Products

Current Products

Future Products

New Products Commercialized in Q3FY25

Future Products added in Q3FY25

Note: The product images shown are for illustration purposes only and may not be an exact representation of the products

With 180-degree field of view, we have made a breakthrough in short-range radar sensors

Single Sensor for Park Assist and More

180-degree view Radar Sensor

vs.

Ultrasonic Sensor

• Replaces 4 ultrasonic sensors

for park assist with a single hardware; hides behind bumper for better aesthetics than drilled holes for ultrasonic

• Outperforms ultrasonic

with a minimum detection distance of 5 cm and detection of lower height objects providing better safety

• Reduces system cost

by providing kick sensing and tailgate protection by the same parking sensor or by providing door protection in case of the sensor for lateral observation

• Universal utilization

of same HW for passenger, commercial, and off-highway vehicle application due to edge processing

• Also useful for affordable PVs and Two-wheelers

for parking support (PVs) and collision warning (2Ws) without needing expensive CPUs

For more information of the product, please click here

To see product demo at CES 2025, please click here

Q3 & 9M FY25 Financial Update

Cross Sectional View of Hub Type EV Traction Motor

Q3 FY25 Financials

1 Revenue (Rs. mn)

EBITDA (Rs. mn)

EBITDA Margin (%)

PAT (Rs. mn)

2 PAT Margin (%)

BEV

YoY: 12%

7,766

YoY: 3%

8,680

2,273

2,342

2,331

2,404

YoY: 14%

1,327

1,512

YoY: 17%

1,371

1,601

2,219

3,291

Q3 FY24

Q3 FY25

29.3%

27.0%

30.0%

27.7%

17.2%

17.4%

17.8%

18.4%

Q3 FY24 Q3 FY25 Q3 FY24

(adj)

Q3 FY25 (adj)

Q3 FY24 Q3 FY25 Q3 FY24

(adj)

Q3 FY25 (adj)

o BEV Revenue grew by 48% and constitutes

39% of total revenue

EBITDA margin is lower by ~2.3% largely due to product mix

o Total Revenue grew by 12% while light vehicle sales in our top-3 markets (North America, India, and Europe) grew by 1%

o Adjustment to EBITDA for Q3FY25 is on account of ESOP cost ₹62 mn under the approved ESOP scheme 2023. (₹58 mn in Q3FY24)

o Adjusted PAT margin is higher by 0.6% mainly due to net finance income from QIP proceeds

for Q3FY25

includes o Adjusted PAT adjustment for exceptional expenses (post-tax) related to potential acquisition opportunities ₹43 mn

Notes: 1. 2.

Revenue includes net gain from foreign exchange PAT margin percentage calculated from PAT including non-controlling interest

9M FY25 Financials

1 Revenue (Rs. mn)

EBITDA (Rs. mn)

EBITDA Margin (%)

PAT (Rs. mn)

2 PAT Margin (%)

BEV

YoY: 17%

22,995

26,861

YoY: 13%

YoY: 15%

6,540

7,403

6,606

7,630

YoY: 19%

3,686

4,371

YoY: 23%

4,666

3,801

6,133

9,291

9M FY24

9M FY25

o BEV Revenue grew by 52% and constitutes

36% of total revenue

o Total Revenue grew by 17% while light vehicle sales in our top-3 markets (North America, India, and Europe) grew by 2%

28.4%

27.6%

28.7%

28.4%

16.1%

16.2%

16.6%

17.3%

9M FY24

9M FY25

9M FY24 (adj)

9M FY25 (adj)

9M FY24 9M FY25 9M FY24

(adj)

9M FY25 (adj)

o Lower input cost and operating leverage had a positive impact on the EBITDA margin whereas change in product mix has pulled it down with a net margin impact of ~0.3%

o Adjustment to EBITDA for 9MFY25

is on account of ESOP cost ₹226 mn (₹67 mn in 9MFY24)

o Adjusted PAT margin is higher by 0.7% mainly due higher net finance income from QIP proceeds

o Adjusted

PAT

9MFY25|9MFY24 for includes adjustment for exceptional expenses (post-tax) related to acquisition opportunities|NOVELIC ₹126 mn|₹65 mn respectively

Notes: 1. 2.

Revenue includes net gain from foreign exchange PAT margin percentage calculated from PAT including non-controlling interest

Key Ratios

VA/Employee cost 6.4 6.2

5.7

5.8

5.2

RoCE (%)

RoE (%)

36.1% 32.4% 30.4% 31.0%

34.6% 36.3%

26.6% 28.5%

19.7%

17.6%

Mar-21 Mar-22 Mar-23 Mar-24 Dec-24

Net Debt to EBITDA

0.76

(0.01)

(0.12)

(0.08)

Working Capital Turnover

Fixed Asset Turnover

3.9

4.2

4.6

5.1

5.0

4.7

3.9

3.6

3.8

(2.66)

Mar-21 Mar-22 Mar-23 Mar-24 Dec-24

Note:

VA/Employee Cost (for manufacturing businesses only) = Material margin / (Employee cost + Manpower cost on hiring) ROCE = LTM EBIT/(Average tangible capital employed + capital deployed for acquiring NOVELIC) ROE = LTM PAT/(Average tangible net worth + capital deployed for acquiring NOVELIC) Net Debt to EBITDA = Short-term & long-term debt less cash, bank balances & mutual fund investments / LTM EBITDA

1) 2) 3) 4) 5) Working Capital Turnover = LTM Revenue/ Average net working capital 6)

Fixed asset turnover (for manufacturing businesses only) = LTM Revenue/ Average Tangible net block

Q&A

Appendix

Our Stall at Bharat Mobility Global Expo 2024

Our story so far…

Phase - 1

• 18 Customers • 2 Plants • 1 Product

Revenue in INR millions

FY99 – 9MFY25 annualized Avg EBITDA margin 26.9% Revenue CAGR 34.5% Industry CAGR 9.1%

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)

• Became publicly listed • 74 customers • 11 plants • 21 products

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

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

35,815

9MFY25 Annualized

31,866

26,756

26,861 9MFY25

FY17– 9MFY25 annualized Avg. EBITDA margin 27.4% Revenue CAGR 28.9% Industry CAGR 4.3%

21,306

15,663

12,201

6,992

6,088

5,033

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

4 2 Y F

Notes: 1. 2.

FY20 onwards financials include Comstar Industry data source: SIAM

5 2 Y F M 9

) . n n A

(

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

Guided by Values

Agility

35.4%

Growth

5-year Revenue

CAGR

Vitality

Integrity

Frugality

27.1%

Margins

5-year Avg.

EBITDA

>25%

Returns ROE

Each Year

(FY20-FY24)

Established Global Presence to Serve Customers Locally

USA Location

Capacity3

Tecumseh, MI 1 mn starter motors

Ypsilanti, MI

Belgium

Genk

Germany

Cologne

China Location Capacity3

Hangzhou -

7 of the world’s top 10 PV OEMs1a

3 of the world’s top 10 CV OEMs1b

7 of the world’s top 10 tractor OEMs1b

Irapuato 1 mn starter motors

Mexico Location Capacity3

Serbia

Belgrade

Novi Sad

Niš

3 of the world’s top 10 EV OEMs1c

3 of the Indian top 10 Indian e-2-Wheeler OEMs1d

Silao

11 4 1 8 3

Manufacturing Plant

R&D Centre

Tool & Die Shop

Warehouse

Engineering Capability Centre

India

Location Capacity3

Gurugram 45.8 mn gears

Manesar

2.5 mn differential assemblies

Pune

14.4 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 2024

Revenue share from BEV has grown 18x over 5 years, with absolute BEV revenue growth at 53x

Revenue from BEV (%)

BEV Segment Revenue (Rs. mn)

18x

53x

25%

26%

29%

36%

6,707

5,042

14%

2.0%

2,057

234

12,388

9MFY25 Annualized

8,859

9,291

9MFY25

FY20

FY21

FY22

FY23

FY24

9M FY25

FY20

FY21

FY22

FY23

FY24

FY25

57 EV programs across 321 different customers

No. of programs customers

28 10

13 10

North America 7 Customers 5 18

Europe2 4 Customers 3 5

3 1

Asia 6 Customers 4 2 3 2

Programs in fully ramped-up production

Programs in ramp-up or not yet in production

Programs for Driveline business

Programs for Motor business

Programs for Sensors and Software business

Notes: 1. 2.

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

India 18 Customers 4 13

+x denotes the change during Q2 FY25

Market Shares for Differential Gears and Starter Motors

Global Market Share of Differential Gears1

Global Market Share of Starter Motors1

CY19

4.5%

CY20

5.0% CY21

6.3%

CY22

7.2%

CY23

8.1%

CY24

8.8%

CY19

2.5%

CY20

3.0% CY21

4.6%

CY22

4.1%

CY23

4.2%

CY24 4.4%

While we continue to dominate the Indian market for Differential Gears

Passenger Vehicles

Commercial Vehicles

Tractors

Notes: 1. 2.

As per Ricardo report; starter motor market share across light vehicles As per CRISIL report dated Feb 2021

55-60%2

80-90%2

75-85%2

Product Summary

Passenger Vehicles

Electronically Locking Differential (EDL)

Spool Gears

Limited Slip Differential (LSD)*

In-Cabin Radar Sensors

360° Short Range Radar Sensors*

Epicyclic Geartrain

Intermediate Gears

Commercial Vehicles

Integrated Motor Controller Module (for Predictive Active Suspension)

Traction Motor*

Input/Rotor Shaft

Differential Assembly

Differential Bevel Gears

Park Gear

Controller*

Starter Motor

Steering Bevel Box*

Coupling/ Sleeves

Inter-Axle Gear Set

*Product under development

Product Summary

Buses

Differential Bevel Gears

Controller*

Steering Bevel Box *

360° Short Range Radar Sensors*

Traction Motor*

In-Cabin RADAR Sensors

*Product under development

In-Cabin Radar Sensors

Off Highway Vehicles

Spiral Bevel Gears

Portal Axle Gears

Traction Motor

360° Short Range Radar Sensors* Light Commercial Vehicles /3-Wheeler (Cargo)

Controller

Differential Assembly

Differential Bevel Gears

Starter Motor

Product Summary

Electric 2-Wheelers

Hub Wheel Motor

Integrated Drive Motor & Controller

360° Short Range Radar Sensors*

Industrial Automation, AGVs & Robots

Robotics Gears*

Integrated Hub Motor & Controller*

Drive Motor

Electric 3-Wheelers

360° Short Range Radar Sensors*

Controller

Bot Motors*

Zone Monitoring Sensors*

EVTOLs

Building Automation

2 3

*Product under development

EVTOL Gearbox*

ESG Performance Highlights

14.3

Low Risk

Top 9%

Negligible

Low

Medium

High

Severe

0-10

10-20

20-30

30-40

40+

Out of 15,104 global companies

ESG Risk Rating (Core)

We have published our third sustainability report in December 2023

Click on the image to read the report

Environmental

Social

Governance

• 10% and 15% improvement in emissions intensity and water intensity respectively, in FY24 from FY22

•

Setting up a total solar group captive capacity of 21.35 MWp across Maharashtra, Haryana, and Tamilnadu

• Pune Chakan Plant has been rated by IGBC in the Green Factory Building category with “IGBC Gold” Rating

• Great Place to Work Certified in Jan 2023 and recertified in Jan 2024 with a higher rating

• Driving incubation of 11 startups innovating for sustainability in partnership with IIT Delhi and IIM Ahmedabad

•

Improved the female participation in the total workforce from 3% to 6%

• Golden Peacock Award won in 2023 for excellence in corporate governance

• 5 independent directors and 2 women directors out of 7 board members

• Promoter holds the position of a non-executive chairman

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