SONACOMSNSE15 February 2022

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

Sona BLW Precision Forgings Limited

Sona Comstar Electrifying Tomorrow

February 2021

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, this accuracy, completeness, 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.

fairness and reasonableness of

the contents of

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 fiscal costs generally prevailing in the economy. The Company does not other undertake to make any announcement 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.

in case any of

2

Electric, Autonomous and Connected – The Future of Mobility

Net formed differential gears coming out of our forging press

Globally LDVs and 2/3 Wheelers are expected to lead the electrification drive

Geography-wise EV penetration in 2030

20%

e-2/3 Ws

NA

5%

e-LDVs

*

25%

75%

*

54%

29%

44%

e-Buses

NA

NA

e-Trucks

3%

10%

2020 penetration

2025 penetration

2030 penetration

Source: Global EV Outlook 2021 – International Energy Agency (sustainable development scenario) * Company Analysis; LDV: Light Duty Vehicles

75%

70%

79%

59% 59%

54%

75%

66%

62%

0%

China Europe US

India RoW

China Europe US

India RoW

China Europe US

India RoW

China Europe US

India RoW

45%

30%

12%

30%

27%

30%

17%

18%

5%

8%

100%

92%

4

Increasing level of automation in vehicles

Level 0

Level 1

Level 2

Level 3

Level 4

Level 5

No System

Feet-off

Hands-off

Eyes-off

Brain-off

No driver

No Automation

Driver Assistance

Partial Automation

Conditional Automation

High Automation

Full Automation

is

driver

The in complete control of the vehicle at all times

The vehicle can assist the driver or take control of either the vehicle’s speed or its lane position

The vehicle can take control of both the vehicle’s speed and lane position in some situations

The vehicle is in full control some in situations, monitors the road and traffic, informs the driver when he/she must take control

The vehicle is in full control for the entire trip under certain conditions

The can vehicle operate without a human or occupant

driver

<2000

2000+

2010+

2021+

2025+

2030+

Source: SAE International (SAE J3016), Deloitte Insights

Expected start of commercial pilots and/or market introductions by established players 

5

Evolution of automotive systems towards automation

1900

1920

1940

1960

1980

2000

2020

Future

Mechanical

Steering

Passive

Suspension

Mechanical

Brakes

Transmission

Lighting

Mirrors

Manual

Electric Headlamps

No mirrors

No Driver Assistance

Driver Assistance

Source: Wikipedia

Hydraulic 1951, Chrysler

Electro-hydraulic 1965, Ford

Electric 1990, Honda

Active 2003, BMW

Hydraulic Active 1954, Citroen

Electronic Active 1999, Mercedes

Predictive Active 2020, Audi

Anti-lock Braking System 1971, Chrysler

Emergency Brake Assist 1996, Mercedes

Automatic Emergency Braking 2008, Volvo

Hydraulic Automatic 1939, GM

Electronic Automatic 1981, Toyota

Electric Drive Unit

Automatic Headlamp

Cornering Lights

Projector Headlamps

Intelligent Light System

Digital Matrix Lights

1950s, GM

1962, Cadillac

1981, Audi

2006, Mercedes

2021, Audi

Manual Antiglare Mirror

Automatic Dimming

1959, Chrysler

Reverse Camera 1991, Toyota

360 deg. Camera

Digital Mirrors

2007, Nissan

2018, Mercedes

Cruise Control

1965, Chrysler

Adaptive Cruise Control

Lane Keep Assist

Automated Valet Parking

1995, Mitsubishi

2003, Honda

2019, Mercedes

i

l

e c h e V s u o m o n o u A 5 - l e v e L

t

d e

r i

u q e R n o i t n e v r e t n

I

n a m u H o N

6

About Us

Final Inspection of Differential Assembly

Technology Roadmap

Autonomous /Connected

Electric

GaN Inverter

Liquid Cooled Inverter

High Voltage Inverter

DC-DC Converter

High Voltage Traction Motors

Integrated P4 e-Axle

Motors for Bots and Industrial Automation

Predictive Active Suspension Integrated Motor Controller Module

Low Voltage Inverter

Magnet-free, Axial Flux and Trapezoidal Stator designs

Mid-mount Drive Motor (PMSM)

Hub Wheel Motor (BLDC)

Belt-driven Starter Generator (BSG)

Rigid e-Axle

Active Biased Differential

Reduction Drive Unit

Diff Gears

Starter Motors

Diff Assembly

Independent suspension e-Axle

Net Spiral/ Hypoid Gears

Epicyclic Set

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

8

New Program Win – Project Glide1

Predictive Active Suspension Integrated Motor Controller Module

~ 4,050 mn peak annual revenue2

FY25 SOP Year

Integrated Motor Controller Module (Motor + Controller + Software)

~2 million lines of code per IMCM

Exploded View of IMCM

Controller + Software

Stator + Rotor

Notes: 1. 2.

Customer name is not disclosed due to confidentiality policy We have applied a discount to the customer estimate

This video is for illustration purpose only and may not be an exact representation of the product

9

Sizeable and Increasing Presence in EVs

23% 9M FY22 Revenue Share

from BEV

3,556 mn 9M FY22 BEV segment

revenue

168% 9M FY22 BEV revenue

YoY growth

20 (7+13)1

BEV Programs1 awarded

across 11 customers as at the

end of Q2 FY22

+4

24 (7+17)1

BEV Programs1 awarded

across 14 customers as at the

end of Q3 FY22

Notes: 1.

Include programs currently in serial production as well as in the orderbook; numbers in brackets to be read as  (# of programs in serial production + # of programs in orderbook)

10

24 EV Programs across 141 different customers

North America 4 Customers 3 8

5

8

Europe 3 Customers 3 2

1

3

Asia 3 Customers 1 2 3

3

Programs in serial production

Programs in orderbook

Programs for differential assemblies / gears

Programs for traction motors / predictive active suspension motors

Programs for e-Axle

Notes: 1.

2 customers are present in more than one geography

10

India 7 Customers 3 7 4 3

3

11

Scaled Player with High and Profitable Growth Outlook Our net order book1 at Rs. 176 billion is 11.2x FY21 revenue

136 bn

Orderbook at the end of Q2 FY22

4 bn

Orders consumed from matured and ramp-up programs during Q3 FY22

44 bn

Orders added for programs won in Q3 FY22

176 bn

Orderbook at the end of Q3 FY22

EV Rs. 116 Billion (66.4%)

Non-EV Rs. 59 Billion (33.6%)

# of Programs

# of Customers

59.3% 10 7

PV

6.8% 6 5

0.3% 1 1

14.6% 27 13

12.4% 17 9

6.6% 42 15

2W &3W

CV

PV

CV

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.

12

9M FY22 Financial Performance Highlights

15,806 mn | 54%

4,237 mn | 41%

2,569 mn | 65%

Revenue | YoY Growth

EBITDA | YoY Growth

PAT | YoY Growth

26.8% EBITDA Margin

16.3% PAT Margin

CY20

CY21

CY20

CY21

5.0%

6.3%

3.0%

4.6%

Global Market Share of Differential Gears1

Global Market Share of Starter Motors2

36.1%

RoCE3

Notes: 1. 2. 3.

As per Ricardo report Across light vehicles; as per Ricardo report ROCE = LTM EBIT/ Average tangible capital employed

13

Thank you

Our final drive gears

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