INDIA F O R T H E WO R L D A Snapshot REVENUE - Consolidated - PowerPoint PPT Presentation

INVESTOR PRESENTATION June 2018 | Bharat Forge Ltd. | Pune M A K I N G I N INDIA F O R T H E WO R L D

A Snapshot REVENUE - Consolidated Revenue : US$ 1.3 Billion; Standalone Revenue: INR 53,160 Million MANUFACTURING LOCATIONS - 10 Manufacturing locations across 5 countries WORKFORCE - Global Workforce of 5,000+ employees MARQUEE CUSTOMERS - Leading Automotive & Industrials OEMs & Tier 1 Suppliers LARGEST EXPORTER - of Auto Components from India GLOBAL LEADERSHIP - In Powertrain & chassis components TRANSFORMATION - From Preferred Supplier to Development Partners BHARAT FORGE BHARAT FORGE MAKING IN INDIA FOR THE WORLD 2 2

Key Differentiators help create an efficient organization Relationship • Development partners • Leveraging relationship 2 to increase content per vehicle 3 De-risked Business 1 Model • Extensive product portfolio Technology & Innovation across Auto & Industrials • Strong in – house R&D • Balanced business spread capabilities over Segments & Geography • Innovation led new product development Customers • Strong Marquee Clientele 4 • Biggest customer: 6% BHARAT FORGE MAKING IN INDIA FOR THE WORLD 3

Consolidated Financials REVENUES Commercial Vehicles Non-Auto Passenger Vehicles 27.5% 17% 84,146 65,982 33% 50% FY 2017 FY 2018 India USA Europe Asia-Pac EBITDA 2% 39.7% 30% 40% 17,761 12,717 28% FY 2017 FY 2018 BHARAT FORGE MAKING IN INDIA FOR THE WORLD 4

Strong balance sheet Particulars Standalone Consolidated FY 2018 FY 2017 FY 2018 FY 2017 Long Term D/E (Net) (0.06) 0.02 (0.01) 0.10 ROCE (Net) 22.5% 14.9% 19.8% 15.3% Return on Net Worth 17.7% 12.9% 16.1% 17.2% BHARAT FORGE MAKING IN INDIA FOR THE WORLD 5

Standalone Results - FY 2018 Domestic sales Export Sales 29,712 53.0% 15.8% 23,448 19,418 19,230 FY 2017 FY 2018 FY 2017 FY 2018 EBITDA PBT before exchange Gain/(Loss) & Exceptional 43.0% 15,763 56.2% 13,033 11,024 8,343 FY 2017 FY 2018 FY 2017 FY 2018 * All values in Rs. Million BHARAT FORGE BHARAT FORGE MAKING IN INDIA FOR THE WORLD 6

Standalone Results - Q4 FY 2018 Domestic sales Export Sales 8,148 35.1% 46.4% 6,518 5,972 5,285 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 PBT before exchange Gain/(Loss) & Exceptional EBITDA 35.1% 46.4% 4,376 3,709 3,240 2,533 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 * All values in Rs. Million BHARAT FORGE MAKING IN INDIA FOR THE WORLD 7

Segmental Breakup - Standalone Commercial Passenger Industrials Vehicles Vehicles 46% of total 46% of total 10% of total revenues revenues revenues FY 2018 : 23,187 FY 2018 : 4,846 FY 2018 : 21,997 FY 2017 : 17,935 FY 2017 : 3,760 FY 2017 : 14,399 +29.3% +28.9% +52.8% • Highest Revenue recorded in all the segments the company operates in. (Values In INR Million) BHARAT FORGE MAKING IN INDIA FOR THE WORLD 8

Geographical Breakup - Standalone India Americas Europe Rest of World 44% of total 38% of total 15% of total 3% of total revenues revenues revenues revenues FY 2018 : 23,448 FY 2018 : 20,208 FY 2018 : 8,085 FY 2018 : 1,419 FY 2017 : 19,230 FY 2017 : 10,903 FY 2017 : 7,303 FY 2017 : 1,212 +21.9% +85.3% +10.7% +17.1% • Strong growth across all geographies on the back of improved end markets and increased customer traction (Values In INR Million) BHARAT FORGE MAKING IN INDIA FOR THE WORLD 9

New order wins 1,500 New Business wins Won over past two years (FY 2016 – FY 2018) INR Driven by new product development Crores Of new order wins from Industrials 48% De-risking the revenue stream within Industrials sector-wise and customer- wise 40% Of new order wins from Passenger Vehicles Increasing contribution from Passenger Vehicles by new customer additions and value added products BHARAT FORGE MAKING IN INDIA FOR THE WORLD 10

Increasing resilience in every trough FY 2017 FY 2017 FY 2013 FY 2013 28.5% 21.6% FY 2009 FY 2009 14.2% 23.3% 21.7% 11.9% PBT MARGINS EBITDA MARGINS FY 2009 4.05 FY 2013 2.55 FY 2017 1.48 DEBT/EBITDA BHARAT FORGE MAKING IN INDIA FOR THE WORLD 11 11

Performance of International Operations (INR Million) Particulars CY 2017 CY 2016 Total Income 26,807 22,566 EBITDA 1,823 1,689 EBITDA % 6.8% 7.5% PBT before Exceptional Item 291 148 • The overseas operations continues to witness improvement in financial performance driven by product mix and focus on productivity and costs. BHARAT FORGE MAKING IN INDIA FOR THE WORLD 12 12

Addressing e-Mobility Opportunity  R&D facility in UK for powertrain solutions of  Strategic investment in EV Electric Vehicles start-up Develop solutions across the   Gain technical expertise on Technical Training entire spectrum of EV’s from EV powertrain development  Complementing capabilities low voltage powertrains in  Access technologies in and knowledge of KCTI & personal mobility to high personal E-mobility space KCMI voltage applications for  Benchmarking activities commercial vehicles BHARAT FORGE MAKING IN INDIA FOR THE WORLD 13

Way forward Focus on creating a Greenfield investment to footprint in the new increase forging and strategic businesses machining capacity Strategic Capacity Business expansion Improve free cash Strong Add new customers flow, maintain strong Market and increase share balance sheet and Financials expansion with existing improve return ratios customers New product Industry 4.0 Create a strong development Creating an advanced product pipeline and manufacturing facility to increase content per improve operational equipment efficiency BHARAT FORGE MAKING IN INDIA FOR THE WORLD 14

Disclaimer This presentation contains certain forward looking statements concerning Bharat Forge’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 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 the target countries for exports, 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 with respect to investments, fiscal deficits, regulations, interest rates 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. No part of this presentation shall be reproduced, copied, forwarded to any third party either in print of in electronic form without prior express consent of the company. BHARAT FORGE BHARAT FORGE MAKING IN INDIA FOR THE WORLD 15 15

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