ALICON

ve a | CO i Casting the Future May 17, 2023 To To The Manager The Manager The Department of Corporate Services The Listing Department BSE Limited National Stock Exchange of India Limited Floor 25, P. J. Towers, Exchange Plaza, Bandra Kurla Complex, Dalai Street, Mumbai — 400 001 Bandra (East), Mumbai — 400 051 Scrip Code: 531147 Scrip Symbol: ALICON Dear Sir/ Madam, Sub: Earnings Presentation on Q4 & FY2023 Pursuant to the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached a copy of the presentation on the financials for the quarter and financial year ended March 31, 2023. This is for your information and records. Thanking you, Yours faithfully, For Alicon Castalloy Limited VEENA bDyig iVtEalElNyA signed VAIDY A Pate:2023.05.17 18:43:03 +05'30' Veena Vaidya Company Secretary Encl : as above Alicon Castalloy Limited, Gat No. 1426, Shikrapur, T: +91 21 3767 7100 www.alicongroup.co.in Tal. Shirur, Dist: Pune — 412 208, Maharashtra — India F: +91 21 3767 7130 Disclaimer Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", ", believe", "may", "expect", will continue", "anticipate", "estimate", "intend", "plan", “contemplate”, seek to", "future", "objective", "goal", "likely", "project", "should", "potential", "will pursue", and similar expressions of such expressions may constitute "forward-looking statements". These forward looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion plans, obtain regulatory approvals, our provisioning policies, technological changes, investment and business income, cash flow projections, our exposure to market risks as well as other risks. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof. ‘¥alicon Offers end-to-end solutions spanning the entire spectrum of aluminum casting needs across multiple user industries Offers - Design, Diversified Engineering, gt marquee Robust track Casting, , Customer record of 49 — processes of Operates one Leader s in the Machining and elo ~ Me lei ce)s5 years, further Road KSC) of the largest development , , Assembly, , 5 P core sectors enriched by y : a; Die Casting Aluminum of Pro-Cast , ; if a Painting and a in India 89 year Pe Ne (LPDC) and foundries in and Magma , eo Surface , , , , y coupled with legacy of \ A Nd (Sco iva)i= India space in India a. , Treatment of : steady rise in IlicAmMann , Casting , _ Aluminum International (OfeiKe] | (e)’, a (GDC) Components presence - Alicon Castalloy - At a Glance oS Gc 8 4 1,405 157 at’ with.. INR crore of Total INR crore of Manufacturing Income in FY23 EBITDA in FY23 81 5 Units Live Parts 1 33 Presence in 1,014 No. of product S No. of permanent innovations FY20-23 counires employees ‘¥alicon Alicon Castalloy — Blending the best attribut 1 5 e @DM Alicon Castalloy Largest Foundry in India — offering frugal engineering solutions hn » 4 = 49 years of track record 6 La» ¥ ¢ > Silicon Meadows 4 » ; a a Illichmann Support in ov Engineering, Tool European subsidia Design and Alicon's presen manufacturing European 20+ years of 89+ years o experience global trac alicon Gasting The Future One-stop shop for all engineering solutions related to aluminum alloy castings “Falicon Casting The Future Catering to key sectors of the Indian economy eh fal Y ed Y Ok, Automobile Infrastructure Aerospace Medical Energy Agriculture alicon Casing The Fulure Global Presence : Close-to-Demand Strategic locations enable shorter time-to-market and enhanced cost optimization 4 modern plants (1 international) High-end machines pS Slovakia Advanced Technology Centre Austria Binol a+ Globally competent Tool Pune Rooms (20 tools/ a month Full-edged Machine Shop (including assembly facility) Chinchwad, Pune Shikrapur, Pune Binola, Austria Slovakia Maharashtra, India Maharashira, India Haryana, India International Marketing * Manufacturing Plant * Manufacturing Plant * Manufacturing Plant * Manufacturing Plant Office *Tool Room *Tool Room * Technology Centre * Product Validation Lab * Product Validation Lab * Product Validation Lab * Product Validation Lab * Machine Shop * Machine Shop “Yalicon Gasting The Future Diversified base of marquee customers Diversity across markets and industries provides a natural hedge TWO WHEELER OEM FOUR WHEELER OEM TIER 1 & NON AUTO — © BO | ABB Atstom AVTEC IE Ei @ BOSCH ee eee eee EZ | Ashok Leyland Auol , Not reli e ant on :I I MY ge = I M D m AIML w E D R gidu + c r | t © NCENTRI < Go E:TeN = — /// GE cosive a single c‘ anchor 7 Ii Hero @q wonton LD, t | Bravery j 6 } @ Garrett Honeywell @P In rst. I ! WHusqvarna i [eee i ue ® ~ [Be @ ON or None ofthe ! nda a MARUTI}¢ S SUZUKI JAGUAR °c c co u n s t t r o i m b e u r t s e i + ~ _@ Ih > ne vene || Ca Ss sA F Gp A Ua L A r Way of Lite! || uepnerr MAAGGNNEEnT ) MAHLE : ca. (bine . Mahindra PSLARIS. ! 3 Oo ' Driven by performance MANN+ >15% of ! amhees | Mahindra RENAULT NISSAN! y y é turnover : ROYAL ae Jo.acr BeS iR Puiups as EP SAMSUNG SOI I ENFIELD 1 Gp I-A i NS crour tt nse and simpli eee eden 9 TATA | IUMP ; PIAGGIO ' F Ova I @<ia\ S TORK conta nis \ 0 10 alicon i \ ( I ) Casting The Future 4 & FY2023 Operational & Financial Highlights Q4 & FY23: Overview of Operating Environment (1/2) . _~ Business & Macro-demand Highlights: ° In Q4FY23, domestic automobile market witnessed 0.6% growth on a yoy basis, driven by - 13% growth in PV segment on a yoy basis - 6.5% growth in CV segment on a yoy basis - 3%decline in 2W segment on a yoy basis ° PVs witnessed strong growth ahead of initial expectations due to normalization of economic activity and new launches by OEMs ° CVs witnessed continued growth on the back of sustained infrastructure spend and strong demand for buses due to school and office movement ° 2W industry's demand remained sluggish due to regulations pertaining to onboard diagnostics (OBD) causing OEMs to recalibrate their production schedules. This situation was further aggravated by unseasonal rainfall in various parts of the country impacting rural demand. ° Apart from Europe, international markets, including the USA, Japan, and South-east Asia, have experienced improved growth rates. Energy costs in Europe have started to ease, which could benefit the overall macro environment ° The ongoing challenge of constrained chip availability has begun to gradually ease, leading to better outlook for production by OEMs . 12 ali Casting Q4 & FY23: Update on EV / Carbon Neutral Trends Key Highlights for the EV industry: ° Global EV Sales remained strong with a total of 10.5 million new BEVs and PHEVs delivered during CY2022, an increase of 55% compared to CY2021. ° Global light vehicle sales for CY2022 were 81 Million Units, still 0.5% lower than CY2021 and 15% below pre-COVID levels. EV Sales (BEV + PHEV) represented 13% of overall light vehicle sales. ° In India, the transition is slower in the segment due to phasing out of subsidy and lack of products in the mass market segment . In India, number of EVs sold increased from 3.2 lakh in CY2021 to around 10 lakh vehicles in CY2022, an increase of over 200%. While 1.8% of all vehicles sold in 2021 were EVs, in CY2022 that number increased to 4.7% ° Electric 2 wheeler (E2W) sales crossed 75,000 units for the first time in Oct 2022 at 75,294 and in Nov 2022 increased further to 76,148 Units. . Number of manufacturers has increased and there were over 30 pure EV manufacturers exhibiting products in Auto Expo 2023. Source: Ministry of Road Transport and Highways - Vahan, ev-vehicles.com 13 Q4 & FY23 - Operational Resilience Lower fixed expenses IN Q4 FY23, the Company has booked Lean and Agile manufacturing 2 new parts from 2 existing customers processes Sustainable Cost- New optimisation Business This includes 2 part from PV and both Focus on reducing overheads Tia parts pertain to the EV / Carbon Neutral segment Program to reduce interest cost 1 part is for international business and Plan to diversify energy mix Key Motto for 1 parts are for domestic business FY 23: 3R Alicon, as an organization is Future Manufacturing facilities operated at Ready to tap opportunities arising utilization levels of around 65% from: After delay due to congestion and Preference for Carbon Neutral tech onset of Russia-Ukraine conflict, the such as hybrid, EV, fuel cells and overseas transit times for exports have Manufacturing Future Ready hydrogen cells begun to normalise. As a_ result, processes Staggered introduction of vehicle overseas customers are now scrappage policy witnessing build up of inventory and Thrust on higher fuel efficiency compressing their immediate term Cost-optimisation & light-weighting of production schedules. products 14 “Yalicon Gasting The Future Alicon combating the 7Cs Auto Industry is faced with seven key challenges impacting demand & Alicon combated these 7Cs consumer sentiments through: —_ Focus on enriched product mix and driving improved volumes of higher margin products Collaboratively working with customers to undertake price hikes Sustained cost reduction initiatives using Kaizen principles that enabled cost reduction at a micro-level across operations Driving higher operational efficiencies across business model alicon Gasting The Future FY23 Highlights — Consolidated SSS SSS Sas @.. eee. ¢ Alicon outperformed the industry with Total Income robust revenue growth of 30% YoY in EBITDA FY23 rol 704.7 growth : 36% * Revenue growth has been driven by 1,081.4 a 156.9 higher volumes on a y-o-y basis and a 115.8 | start of production on new business. This has been supported by improved contribution from international subsidiary— Illichman FY22 FY23 Py22 PY28 * Gross profit of Rs. 689.68 crore, with : : margin at 49.2% in FY23 compared to 49.4% in FY22. Improved revenue mix PBT PAT and value engineering have led to stable gross margin despite sharp rise in . q\v . 4% input prices on a YoY basis at * ot oO ot * Reported an improved EBITDA margin of 11.2% in FY23, higher by 46 basis points YoY. New parts added with higher value addition have contributed = = | to structurally improved EBITDA margin FY22 FY23 FY22 FY23 * Reported sharp growth in PBT and PAT Figures in Rs. Crore PAT % on a YoY basis 16 Walicon Casting The Fulure Revenue Mix — FY23 ~ Non-Auto. 79, Global, 22% Domestic , Auto, 93% 78% 17 ‘¥alicon Q4 FY23 Highlights — Consolidated In Q4, Alicon delivered — stable revenues on a yoy basis and de- Total Income EBITDA growth of 11% on a qoq basis. Revenue and volume during the 321.4 362.0 320.7 42.4 quarter was impacted by dip in 2W 38.7 33.4 volumes due to scaled down production schedules by OEMs to incorporate upgrades in products as stipulated by regulations. Q4FY22 Q3FY23 QAFY23 Q4FY22 Q3FY23 QAFY23 Gross profit was Rs. 164.75 crore, with EBITDA % Pays 11.7% RK the gross margin at 51.6%. Gross Margin has improved both on yoy basis as well as gqoq basis due to PBT PAT richer product mix and_ softening 17.7 178 input prices. Operating de-leverage has 15.6 79 13.2 a 97 impacted EBITDA. However, EBITDA margin was resilient at 10.3%, lower by 171 Bps yoy. Higher other income and lower tax Q3FY22 Q3FY23 QAFY23 QA4AFY22 Q3FY23 Q4FY23 outgo has limited the impact on PAT, which was Rs. 9.7 crore in Q4, lower Figures in Rs. Crore by 27% on a YoY basis 18 “Yalicon Gasting The Future Revenue Mix — Q4FY23 Non-auto, 7 Global, 21% Auto, 92% Domestic , 79% 19 ‘¥alicon Abridged P&L — Consolidated Particulars (Rs. crore) Q4 FY23 Q4 FY22 Y-o-Y Shift FY23 a 7 Y-o-Y Shift 319.25 320.56 Net Revenue from Operations 0% 1,401.16 1,078.05 30% 1.42 0.81 Other Income 76% 3.50 3.32 6% 320.67 321.37 Total Income 0% 1,404.65 1,081.37 30% 287.53 282.65 Total Expenditure 2% 1,247.75 965.57 29% 154.50 158.91 Raw Material expenses -3% 711.88 545.48 31% 40.06 40.63 Employee benefits expense -1% 164.90 138.10 19% 92.97 83.11 Other expenses 12% 370.98 282.00 32% 33.14 38.72 EBITDA -14% 156.91 115.79 36% 10.33% 12.05% EBITDA margin (%) -171 Bps 11.17% 10.71% +46 Bps 8.56 7.14 Finance Costs 20% 31.24 30.12 4% 16.69 13.87 Depreciation and Amortization 20% 63.56 53.09 20% 7.89 17.70 PBT -55% 62.12 32.58 91% (1.81) 4.49 Tax Expenses -140% 10.69 8.40 27% 9.70 13.21 PAT -27% 51.42 24.18 113% 3.03% 4.10% PAT Margin (%) -107 Bps 3.66% 2.24% +142 Bps 20 “Yalicon Casting The Future Abridged Balance Sheet — Consolidated As on March As on March As on March As on March Liabilities (Rs. Crore) Assets (Rs. Crore) 31, 2023 31, 2022 31, 2023 <7) a) Shareholders’ Funds 487.85 449.07 a) Non-current Assets 459.13 441.98 b) Non-current Liabilities (NCL) 134.20 152.15 a) Current Assets 628.43 560.38 - Long-term Borrowings 108.56 114.90 - Inventories 152.83 131.00 - Other NCL 25.64 37.25 - Trade Receivables 440.33 396.33 - Cash & Bank balance 11.95 15.52 c) Current Liabilities (CL) 465.52 401.14 - Others 23.33 17.53 - Short-term Borrowings 192.30 146.17 - Trade Payables 219.82 211.73 Total 1,087.56 1,002.36 - Other CL 53.39 43.24 Total 1,087.56 1,002.36 21 ‘Walicon Casting The Future Management Message Commenting on the performance, Mr. Rajeev Sikand, Group CEO, Alicon Castalloy said, “We are pleased to end fiscal year 22-23 with a consolidated total income of Rs. 1,405 crore, representing 30% growth on a year-on-year basis. Our transformation initiatives, firmly rooted in our comprehensive 5-pillar strategy, consistently reinforce our position as the preferred partner for both domestic and global customers. Profit after tax for financial year 22-23 was Rs. 52 crore, higher by 114% on a year-on-year basis. This growth in profitability is attributed to higher volumes, driven by new parts and customers, as well as increased value addition and cost optimization measures. The Board has recommended an interim dividend of Rs. 2.5 per share in view of the performance. We have exerted substantial efforts to revamp our business model, positioning ourselves as an agile and diversified entity that capitalizes on our inherent strengths of design excellence, value engineering and consistent execution. Our global teams have actively fostered deeper customer engagements harnessing these capabilities leading fo an improving frack record and enhanced order wins. FY23 was a year of consolidation after experiencing significant macro-economic challenges for the last 3 financial years. We believe that we have reclaimed our pre-pandemic base and will look fo resume our longer ferm growth trajectory in FY24 on the back of a cautiously optimistic outlook." 22 ‘¥alicon Conference Call Details Alicon Castalloy’s Q4 & FY23 Earnings Conference Call Time & Date * 12:00 PM IST on Thursday, May 18, 2023 Local dial-in numbers ¢ +9| 22 6280 1141 * +91 227115 8042 International Toll Free Number * Hong Kong: 800 964 448 * Singapore: 800 101 2045 * UK0 :80 8 101 1573 ° USA: | 866 746 2133 24 —— ALLE) ||] AUN) 4 II fe alicon Casting The Future ease contact: Mayank Vaswani / Mit Shah CDR, India Tel: +91 22 98209 40953 / 99201 68314 Email: For more information, visit www.alicongroup.co.in