Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Shareholder Meeting (July 2021)
50 slides from Escorts Kubota's shareholder meeting presentation, Jul 27, 2021
Slide 1: Presentation at the 75th Annual General Meeting
ESCORTS " July 27, 2021 BSE Limited National Stock Exchange of India Delhi Stock Exchange Phiroze Jeejeebhoy Towers, Limited Limited Dalal Street, Exchange Plaza, Bandra Kurla DSE House, 3/1, Asaf Ali Mumbai - 400051 Complex, Road, Bandra East, Mumbai-400051 New Delhi - 110002 Sub: Presentation at t
Slide 2: Welcome to the 75th AGM
Welcome to the 75th AGM of Spreading Prosperity. Impacting Lives. 27 July 2021 Escorts Ltd. 1
Slide 3: Board of Directors
Board of Directors Nikhil Nanda Hardeep Singh P.H. Ravikumar Vibha Paul Rishi Sutanu Behuria Nitasha Nanda Shailendra Agrawal Sunil Kant Munjal Tanya Dubash Harish N. Salve Dai Watanabe Yuji Tomiyama 27 July 2021 Escorts Ltd. 2
Slide 4: Key Executive Team
Key Executive Team CEO – Escorts Group CFO & CEO – Escorts Agri Group CHRO & Company Secretary Construction Corporate Head Machinery Dy. Corporate Head & Compliance Officer Equipment Bharat Madan Shenu Agarwal Ajay Mandahr Amit Singhal Satyendra Chauhan 27 July 2021 Escorts Ltd. 3
Slide 5: Auditors
Auditors Mr. Jayant Gupta Practicing Company Secretary 27 July 2021 Escorts Ltd. 4
Slide 6: Covid-19 Update
Covid-19 Update 27 July 2021 Escorts Ltd. 5
Slide 7: Work From Home
Work From Home 27 July 2021 Escorts Ltd. 6
Slide 8: Covid Appropriate Behavior
Covid Appropriate Behavior Daily Thermal Screening, Social distancing, Sanitization, Masks & PPE Kits 27 July 2021 Escorts Ltd. 7
Slide 9: 27 July 2021 Escorts Ltd.
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Slide 10: Covid Kavach Camps
Covid Kavach Camps Mass Vaccination across Escorts Dealerships (pan-India) 27 July 2021 Escorts Ltd. 9
Slide 11: 27 July 2021 Escorts Ltd.
27 July 2021 Escorts Ltd. 10
Slide 12: 27 July 2021 Escorts Ltd.
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Slide 13: Continued Serving Farmers during Lockdown
Continued Serving Farmers during Lockdown 27 July 2021 Escorts Ltd. 12
Slide 14: Adopting the New Normal! Digitization and IT Enablement
Adopting the New Normal! Digitization and IT Enablement 27 July 2021 Escorts Ltd. 13
Slide 15: Spreading Prosperity. Impacting Lives.
75 YEARS Spreading Prosperity. Impacting Lives. 27 July 2021 Escorts Ltd. 14
Slide 16: Visionary Founder
Visionary Founder 27 July 2021 Escorts Ltd. 15
Slide 17: Video
Video Escorts Ltd. 27 July 2021 16
Slide 18: 27 July 2021 Escorts Ltd.
27 July 2021 Escorts Ltd. 17
Slide 19: Powering farmers, nation building, rail transport
] Sea Y ofa es = Cc OQ o x 27 July 2021 POWERING tl ee OF FARMERS We will continue to fight against the global food security challenge by helping farmers grow enough food for the entire world, - 2 PREFERRED PARTNER IN NATION BUILDING We will contribute in building the nation with smart and state-of-
Slide 20: FY 2020-21
FY 2020-21 27 July 2021 Escorts Ltd. 19
Slide 21: Year of Records
YEAR OF RECORDS Ever Highest Ever highest Operating Margins consolidated revenue More than 1 Lac Ever Highest Domestic Sales Profit in Single Year Highest Ever Production 27 July 2021 Escorts Ltd. 20
Slide 22: Escorts Agri-Machinery
Escorts Agri-Machinery 27 July 2021 Escorts Ltd. 21
Slide 23: Tractor Industry
Tractor Industry 27 July 2021 Escorts Ltd. Data Source TMA & Escorts Annual Report FY2021 22
Slide 24: EAM Performance
EAM Performance 27 July 2021 Escorts Ltd. 23
Slide 25: Stronger Dealer Network
Stronger Dealer Network 1500 # Active Dealers (Year Closing) 1100+ 1000+ 900+ 800+ 800+ 750+ FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 Goal 27 July 2021 Escorts Ltd. 24
Slide 26: Exports from India
Exports from India # Tractors Sold FY'21 4,893 FY'20 3,766 FY'19 3,089 FY'18 1,971 FY'17 1,087 FY'16 757 +29.9% +16.5% 2x Industry EAM Growth Growth 27 July 2021 Escorts Ltd. 25
Slide 27: Escorts Tractors for Kubota Network
Escorts Tractors for Kubota Network 27 July 2021 Escorts Ltd. 26
Slide 28: Growing Profitably – Highest Ever EBIT Margins
Growing Profitably – Highest Ever EBIT Margins 18.2% 18.2% EBIT % 14.0% 13.6% 13.0% HIGHEST EVER EBIT FOR AGRI BUSINESS 10.3% FY'17 FY'18 FY'19 FY'20 FY'21 27 July 2021 Escorts Ltd. 27
Slide 29: TOTY Award Winners
TOTY AWARD WINNERS | I a AN! — a a M/ J J = 202 “1 ‘Z “ a) fc , t ~ 5 / uf BEST TRACTOR ,, Ni ¥ "4 ‘(BEST TRACTOR \9 y ELECTRIC TRACTOR \¢ \ BETWEEN Dy Sj) LAUNCH OF THE x4 FOR NA “, SMART TRACTOR)” SQ @1-40 HP) 9)” “0 YEAR) \), AGRICULTURE Sy OF THE YEAR)
Slide 30: Escorts Construction Equipment
Escorts Construction Equipment 27 July 2021 Escorts Ltd. 29
Slide 31: Tremendous recovery in Construction Equipment
Tremendous recovery in Construction Equipment 41% VOLUME GROWTH (H2-FY21) Served Industry ↑+34% (H2-FY21) H1FY21 affected due to Lockdown 27 July 2021 Escorts Ltd. 30
Slide 32: EBIT Maintained
3.6% EBIT MAINTAINED (Despite 3.2% drop in Sales) 27 July 2021 Escorts Ltd. 31
Slide 33: Dual Brand Strategy (Value & Premium)
Dual Brand Strategy (Value & Premium) YELLOW LINE BRAND (VALUE) WHITELINE BRAND (PREMIUM) Customer Segmentation & Differentiation Regaining Technology Leadership 27 July 2021 Escorts Ltd. 32
Slide 34: Escorts Railway Equipment
Escorts Railway Equipment 27 July 2021 Escorts Ltd. 33
Slide 35: RED Performance
RED Performance +0.4% SALES MARGINALLY UP 16.0% EBIT FOR FY21 (Despite Severe Covid Led Disruptions) 27 July 2021 Escorts Ltd. 34
Slide 36: Metro
59% METRO SALES FROM NEW PRODUCTS ENTRY IN NEW SEGMENTS 27 July 2021 Escorts Ltd. 35
Slide 37: Consolidated Highlights FY 2020-21
Consolidated Highlights FY 2020-21 27 July 2021 Escorts Ltd. 36
Slide 38: Key Financial Highlights (Consolidated FY2021)
Key Financial Highlights (Consolidated FY2021) YoY Change Recommended Total Dividend of 75% per Equity Share 27 July 2021 Escorts Ltd. 37
Slide 39: Our Real Heroes
Our Real Heroes 27 July 2021 Escorts Ltd. 38
Slide 40: Vision 2022 Update
Vision 2022 Update *Vision FY2022 was shared in Feb-2018 27 July 2021 Escorts Ltd. 39
Slide 41: Vision 2022 Update (Till FY2021)
1.7x Exports REVENUE 4% Plus of Operational turnover 16.3% 26% EBITDA ROCE Vision 2022 Update (Till FY2021) 27 July 2021 Escorts Ltd. 40
Slide 42: Our Domestic Market Share
Our Domestic Market Share 10.2% 11.6% 11.3% 2015-16 2019-20 2020-21 After 4 Years of Continuous Winning Streak Marginally Dropped LY HP Segments Market Share Increase in All Product Segments 27 July 2021 Escorts Ltd. Data Source TMA & Escorts Annual Report FY21 41
Slide 43: Mid-Term Business Plan
Mid-Term Business Plan 27 July 2021 Escorts Ltd. 42
Slide 44: Strategy Framework
Strategy Framework Group Strategic Business Objectives > Best in Industry Profitability >Enhancing Shareholder Value >Leveraging Strategic Partnerships >Innovation & Thought Leadership – Leader in electric >Reduction in Carbon Footprint tractor Divisional Strategic Business Objectives Agri Machinery
Slide 45: Model Farm
Model Farm 27 July 2021 Escorts Ltd. 44
Slide 46: 27 July 2021 Escorts Ltd.
27 July 2021 Escorts Ltd. 45
Slide 47: Some Pre-Covid Pictures
27 July 2021 Escorts Ltd. *Some Pre-Covid Pictures 46
Slide 48: 27 July 2021 Escorts Ltd.
27 July 2021 Escorts Ltd. 47
Slide 49: Narrations
Narrations • EAM – Escorts Agri Machinery • ECE – Escorts Construction Equipment • RED – Railway Equipment Division • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • FY2020 - Fiscal Year represents the 12 months period from 1st April 2019 to 31st March 2020 • FY2021
Slide 50: Safe Harbor
Safe Harbor Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im