Bajaj Mobility Ag · SIX:BMAG
Bajaj Mobility — KTM Industries — Investor Presentation (July 2018)
27 slides from Bajaj Mobility's investor presentation, July 2018
Slide 1: Presentation July 2018
PRESENTATION July 2018 1
Slide 2: Disclaimer
Disclaimer This document is for information purposes only and shall not be treated as giving any investment advice and/or recommendation whatsoever. This presentation and any information (written or oral) provided to you does not constitute an offer of securities, nor a solicitation for an offer of
Slide 3: The leading European powered-two wheeler group: Revenue and EBIT performance
The leading European powered-two wheeler group Revenue and EBIT performance Revenue CAGR 11-17: 14.6% EBIT CAGR 11-17: 22.7% 1.800 180 EBIT (in EURm) Revenues (in EURm) 1.600 1,533.4 160 1.400 1.343,0 140 1.223,6 1.200 132.5 120 1.086,3 122,3 1.000 112,9 100 896,3 825,7 800 93,0 80 678,6 600 60 59,3
Slide 4: Group structure
The leading European powered-two wheeler group Group structure 98.2% 51.7% 49.9%2) 74% 100% 74% Sale and closing of Pankl-Group in June 2018 100% 26% 99.9%1) High PTW Design, concept eMobility performance Powered two development & components wheelers digitalization Source: KTM Industries AG Note: Si
Slide 5: Focus on the two-wheeler industry – Sale of Pankl-Group
Focus on the two-wheeler industry – Sale of Pankl-Group Rationale and impact on KTM Industries AG ▪ Reduction of Net Debt of about EUR 150 million ▪ Improvement of Gearing to ~ <50% and Net Debt/EBITDA => ~ 1,0 ▪ Reduction of balance sheet total; Equity Ratio will amount to ~ 40% ▪ Reduction of inte
Slide 6: Motorcycle growth
Motorcycle growth Long-standing growth track record with sales target of 400,000 units in 2022 Unit CAGR 93-17: 15.8% ~400 238.3 203.3 47,1 183.2 35,9 158.8 31,0 36,9 18,2 30,8 21,6 123.9 14,9 107.2 154,3 125,7 130,6 136,7 98,7 106,1 84,4 90,3 92,4 81,2 70,5 76,8 80,4 61,7 64,1 66,3 34,1 54.3 17,3 2
Slide 7: Market environment HY1 2018 vs 2017
Market environment HY1 2018 vs 2017 Overall trends in addressable market above > 120ccm Source: KTM Industries AG | Europe (AT, CH, DE, DK, ES, BE, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX) OC: ERG (incl. MX) 7 Note: Calcul
Slide 8: Motorcycle growth – Units sold
Motorcycle growth – Units solds Strong unit growth in USA and Europe in HY1 2018 ▪ India is seen as the most important future market ▪ Largest growth in absolute terms is still expected from Europe and North America ▪ Largest growth in relative terms is expected in emerging markets ▪ The revenue mix
Slide 9: Motorcycle growth driver - Husqvarna Street
Motorcycle growth driver - Husqvarna Street Leveraging the KTM product and distribution platform for Husqvarna Street STREET Platform project launch 2018 OFFROAD KTM 690 Duke Husqvarna 701 Vitpilen Already realized Unit CAGR 17-22: 28.3% platform strategy project ~128 KTM 450 Husqvarna 450 Unit CAGR
Slide 10: Motorcycle growth driver - 800cc parallel-twin
Motorcycle growth driver - 800cc parallel-twin Leveraging the new 800cc motor platform 77 KW Power in KW 169 KG Dry Weight Unit CAGR 18-22: 23.1% ~25.9 11,3 KTM 790 Duke Units in k 18E 22E Units of KTM 790 Duke Units of KTM 790 Adventure (market launch 2018) (market launch 2019) Prototype KTM 790 Ad
Slide 11: Motorcycle growth driver - Cooperation with Bajaj
Motorcycle growth driver - Cooperation with Bajaj Production volume is expected to increase to over 200,000 units during the next years Unit CAGR 17-22: ~17.1% ~200 90.9 Vitpilen 401 Svartpilen 401 Pune 47,1 43,7 390 Adventure DUKE 125/200/390 RC 200/390 2020 Units in k 17A 22E KTM units distributed
Slide 12: Bajaj factory in Pune / India
Motorcycle growth driver - Cooperation with Bajaj Bajaj factory in Pune / India Source: KTM Industries AG 12
Slide 13: Bajaj built-up 425 KTM showrooms in India
Motorcycle growth driver - Cooperation with Bajaj Bajaj built-up 425 KTM showrooms in India over the last 6 years Number CAGR 12-18: ~53.9% 425 Established and # KTM showrooms growing dealer network as strong base for the 354 rollout of Husqvarna street in India 275 Pune 176 124 70 32 March 12 March
Slide 14: Motorcycle growth driver – Dual brand dealers
Motorcycle growth driver – Dual brand dealers Dual brand dealers almost tripled in three years. 840 Husqvarna dealers by end of 2017 Dual Brand Dealers # of dealers 54 145 549 695 1.986 1.842 15 17 Source: KTM Industries AG Note: Chart includes subsidiary and importer dealers 14
Slide 15: Strategic alliances: New joint venture with CF Moto
Strategic alliances New joint venture with CF Moto Joint venture with long-term Chinese partner CF Moto ▪ KTM entering into a joint venture with its long-term partner CF Moto in order to expand the market presence in China KTM 790 Duke ▪ The joint venture will focus on the industrialization of compo
Slide 16: eMobility
eMOBILITY 16
Slide 17: PEXCO – electric two-wheeler
PEXCO – electric two-wheeler Start with a comprehensive Husqvarna model range 2017/18 Husqvarna 1 offroad and street motorcycles EVOLUTION STREET EVOLUTION OFFROAD Different 2 model types for electric two- wheelers 10 models 7 models 4 models 4 models 3 models 3 models 2 models Grand Grand Tourer Li
Slide 18: KTM E-Mobility: Zero emission product strategy
KTM E-Mobility Zero emission product strategy Freeride E Sport Mini 2kW Freeride Light Husqvarna Scooter 16kW (5 kW Top Performance) 4kW 4kW / 11kW Market launch: On the market 2019 2020 2020/21 Source: KTM Industries AG 18
Slide 19: Outlook
OUTLOOK 19
Slide 20: Outlook: Financial guidance
Outlook Financial guidance Short- and mid-term guidance 2018 (NEW) 2021 (NEW) 2021 (OLD) Revenue growth 9 – 11% 9 – 11% CAGR 2018-21 7 – 9% CAGR 2018-21 Number of motorcycles sold1) – >360,000 units >300,000 units EBIT margin 8 – 10% 8 – 10% 8 – 10% Capex2) / sales 8 – 10% 8 – 10% 9 – 11% Net debt /
Slide 21: Appendix
APPEND ~ - FS > ee at [a
Slide 22: Management team and contact details
Appendix Management team and contact details Contact details KTM Industries AG KTM Industries AG Stefan Pierer Edisonstrasse 1 ▪ CEO ▪ DI 4600 Wels Austria Friedrich Roithner www.ktm-industries.com ▪ CFO ▪ Mag. Hubert Trunkenpolz Mag. Friedrich Roithner, CFO ▪ CSO E-mail: friedrich.roithner@ktm-indu
Slide 23: Consolidated profit & loss figures under IFRS
Financials Consolidated profit & loss figures under IFRS in EURm 2015 2016 2017 ∆ 2016/17 CAGR 2015-17 ▪ As a result of the cooperation 1 Revenues 1,223.6 1,343.0 1,533.4 +14% +12% 1 with Bajaj, the share of motorcycles sold in lower EBITDA 178.4 198.4 219.0 +10% +11% price segments (< 400cc) has fu
Slide 24: EBIT margin bridge and effects on tax rate
Financials EBIT margin bridge and effects on tax rate Adjusted EBIT margin 2016 vs 2017 Deviations from normalized tax rate 2016 vs 2017 +0.1% Normalized 2016 group tax rate 20171) 0,3% 0,3% 18.3% 25.0% 28.1% Sale of a New non-operating transmission -6.7ppts +3.1ppts property plant 1 2 9,1% 8,8% 8,6
Slide 25: Consolidated balance sheet and cash flow figures under IFRS
Financials Consolidated balance sheet and cash flow figures under IFRS 2015 2016 2017 ∆ 2016/17 in EURm 1 ▪ Decreased due to repayment of the bond Balance sheet total 1,175.9 1,423.81) 1,470.6 +3% issued by KTM AG (EUR 85m) in 2012 2 ▪ Net debt / EBITDA is at the lower end of Equity 386.6 454.9 528.
Slide 26: Development of sales mix since 2000
Appendix Development of sales mix since 2000 Revenue development and split by type 1.600 100%▪ KTM/Husqvarna is the largest Revenues (in EURm) 16% 14% 14% 15% 16% 16% manufacturer of offroad motorbikes 20% 19% 20% 19% 23% 22% 19% 18% 17% 17% 16% 16% 90% 1.400 worldwide 5% 6% 7% 6% 4% 4% 4% 6% 4% 4%
Slide 27: Data sources for motorcycles market information and intelligence
Appendix Data sources for motorcycles market information and intelligence Sources by market Europe Reported countries: AT, BE CH, DE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK Data source: ACEM, national data providers Motorcycles: >120cc & electric, no MX available North America Data source: MIC (