Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (August 2022)
73 slides from Eicher Motors's investor presentation, Aug 10, 2022
Slide 1: Regulation 30 submission letter to stock exchanges
Augustt 10, 2022 Online in ntimation/su ubmission The Secrretary The Secretary BSE Limited National Stock Exchange E of India I Ltd th Phiroze Jeejeebhoy Towers T hange Plaza, 5 Floor, Plo Exch ot No.C/1, Dalal Strreet G Blo ock, Bandra Kurla Complex, Bandra (E) Mumbai‐400 001 Mummbai‐400 0511 Secur
Slide 2: Investor Presentation August 2022
INVESTOR PRESENTATION 1 August 2022
Slide 3: Contents
Contents 1 EICHER MOTORS LIMITED – OVERVIEW 2 ROYAL ENFIELD 3 VE COMMERCIAL VEHICLES LIMITED 4 ESG 5 FINANCIALS Note: The Company followed “January-December” as its reporting year till December 2014. The Board of Directors in its meeting held on February 13, 2015 decided to align the reporting year
Slide 4: Eicher Motors Limited
Eicher Motors Limited INVESTOR PRESENTATION 3 August 2022
Slide 5: Eicher Motors Ltd. (EML) - Group Structure
Eicher Motors Ltd. (EML) - Group Structure Domestic Promoter Group Foreign Institutional Others Institutional Investors Investors 49.21% 29.50% 10.13% 11.16% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eicher Motors Limited (EML) Joint Venture with Volvo Group Business Unit 45.6% 54.4% Royal Enfield
Slide 6: Royal Enfield
INVESTOR PRESENTATION 5 August 2022
Slide 7: Global leader in the middleweight motorcycle segment
Global leader in the middleweight motorcycle segment; Poised to become the first premium global consumer brand from India Royal Enfield is the global leader in the 250cc – 750cc, mid-segment motorcycles. With ~90% market share in the Indian mid-size segment, we have rapidly grown our presence across
Slide 8: Launch of the Classic in 2009 was an inflection point
Launch of the Classic in 2009 was an inflection point Volumes grew by ~22% CAGR between CY-2010 to FY-2018, prior to significant external headwinds Replacement opportunity awaits as most of the sales While FY2021-22 volumes were impacted due to COVID-19 happened in the past 7 years and production co
Slide 9: Significant Value Creation for all stakeholders
Significant Value Creation for all stakeholders Market Capitalisation (INR Billions) 127x returns over last 15 years Source: BSE INVESTOR PRESENTATION Excluding dividends 8 August 2022
Slide 10: Global
Global INVESTOR PRESENTATION 9 August 2022
Slide 11: Opportunity – Domestic Market
Opportunity – Domestic Market India to become a US$6.5 trillion economy by 2030 India’s favorable demographics Indian Economy: A shift to a high growth path By 2031, the working age population i.e. 20-59 years is poised to increase by 300bps Source: Economic Survey 2019-20 Rising income Many India’s
Slide 12: Established Premium Brand in India with an expansive premium distribution network
Established Premium Brand in India with an expansive premium distribution network 1,076 stores and 1,056 studio stores across ~1,750 cities Dealer Network Store count ▪ Large stores ▪ Studio stores North 335 | 361 East 224 | 252 West 198 | 151 City Category wise Distribution* Category Store Count Me
Slide 13: Global mid-size motorcycle market is underserved and is a huge opportunity
Global mid-size motorcycle market is underserved and is a huge opportunity The Oddity of the Motorcycle Industry Globally… is an opportunity CAGR:2012-18 Developing Motorcycles Most > Markets 750cc -2% Industry Industries 250-750cc 3% Premium RE is driving upgrade along -2% with premiumisation in In
Slide 14: Global mid-size motorcycle market: brand, product, network
Global mid-size motorcycle market is underserved and is a huge opportunity BRAND PRODUCT NETWORK ▪ Strong brand ▪ Strong pipeline of new ▪ Focused approach for salience coupled with products for next 5 international market equity as a premium years and beyond for expansion and desirable brand the gl
Slide 15: Building capabilities to cater to global audience
Building capabilities to cater to global audience Bruntingthorpe, UK New Product Chennai, India Introduction (NPI) In English midlands with access framework in place to to global product development develop best-in-class capabilities and ecosystem products in an optimal timeframe World-class facilit
Slide 16: Rapidly growing international network
Rapidly growing international network 860+ global touchpoints with 169 Exclusive stores & 690+ MBOs Developed Markets Developing Markets Multi Multi Exclusive Exclusive Brand Brand Store Store Outlet Outlet North APAC 46 101 1 139 Countries with exclusive stores America ■ Australia* – 1 ■ New Zealan
Slide 17: Share of revenue from international markets has grown over 5x over the last 7 years
Share of revenue from international markets has grown over 5x over the last 7 years Network Expansion and Touch Points International Business – Stellar Financial Performance over last New Retail formats - Studio stores, Shop-in-shop for apparel, and 7 years motorcycle displays to increase customer r
Slide 18: Motorcycling
Motorcycling INVESTOR PRESENTATION 17 August 2022
Slide 19: Product Portfolio – Expanding presence in mid-weight segment
Product Portfolio – Expanding presence in mid-weight segment Royal Enfield motorcycles are able to address a unique mix of appeals – from its traditional customer base to urban, aspiration-driven youth Hunter 350 Bullet 350 Classic 350 Meteor 350 ▪ Trend-setter with modern features ▪ Oldest brand st
Slide 20: Product Portfolio – Expanding presence in mid-weight segment
Product Portfolio – Expanding presence in mid-weight segment Royal Enfield motorcycles are able to address a unique mix of appeals – from its traditional customer base to urban, aspiration-driven youth Scram 411 Himalayan Continental GT 650 Interceptor 650 ▪ Brand’s first ADV Crossover – ▪ Purpose-b
Slide 21: All-new Hunter 350
All-new Hunter 350 Royal Enfield range of motorcycles Great is able to address “URBAN” a unique mix of appeals – motorcycle from its traditional customer base to urban, aspiration-driven youth REBEL DAPPER FACTORY Enjoyable engine Premium Feel with Accessible, performance with Upright comfortable tr
Slide 22: All New Scram 411: The versatile ADV Crossover
All New Scram 411: The versatile ADV Crossover Unveiled for global audiences with retail Expanding Royal Enfield Adventure availability in India, and to debut in Europe portfolio, complementing Himalayan ADV and APAC by mid of 2022 "The SCRAM is a motorcycle “A proper Scrambler and a "Scram 411 is d
Slide 23: Scram 411: Vibrant colorways and wide range of accessories
Scram 411: Vibrant colorways and wide range of accessories What sets the All New Scram 411 apart? The all new Scram 411 is available in 7 different colour combinations INVESTOR PRESENTATION August 2022
Slide 24: Best-in-Class Technology Delivering Superior Quality
Best-in-Class Technology Delivering Superior Quality Royal Enfield range VEHICLE of motorcycles is able to address ASSEMBLY ENGINEa unique mix of appeals – ASSEMBLY SURFACE FINISHING from its traditional customer base to urban, aspiration-driven youth ▪ SRK methodology for new products ▪ Automated c
Slide 25: The quest for enhancing consumer experience
The quest for enhancing consumer experience SALES SERVICE PRODUCT Field Failure – Defects per Hundred Bike DPHB 2016 2017 2018 2019 2020 2021 2022 Store and Online experience Service on Wheels & Ride Sure Product Quality Excellence ▪ Sales Process excellence ▪ The Ride Sure programme with a ▪ Vallam
Slide 26: Enhancing the pure motorcycling experience
Enhancing the pure motorcycling experience Studio Stores Royal Enfield Vintage Make It Yours - a unique Unique compact store format with Transparent sale and purchase motorcycle personalization 3S store offerings of pre-owned RE motorcycles initiative Royal Enfield Garage RE App Royal Enfield Café,
Slide 27: Make It Yours - A Royal Enfield. Made by you, for you
Make It Yours - A Royal Enfield. Made by you, for you Personalise your motorcycle from Day 1. Make it the way you want from style, safety to comfort ` Personalise your Give it a unique look Cover endless miles motorcycle your way with added comfort Cruise your own way. Get the joy of a From Day 1. p
Slide 28: Expanding the Pure Motorcycling Ecosystem
Expanding the Pure Motorcycling Ecosystem Provide frictionless experience for RE Riders Explore new revenue / profit pool from adjacencies In Store Opportunity In Use Opportunity Road Side Spares Assistance Annual Extended Maintenance Warranty Contract Accessories Apparel Solutions Business - Financ
Slide 29: Product Portfolio – Apparel
Product Portfolio – Apparel ALPINESTARS x RE NEW RIDING JACKETS PREVIEW WITH LEADING A riding apparel collection created for those who live to chase MOTORING JOURNALISTS adventures. The range brings you the motorcycling legacy, Partnered with the country's top 7 motoring journalists and experts expe
Slide 30: Brand
Brand INVESTOR PRESENTATION 29 August 2022
Slide 31: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION 30 August 2022
Slide 32: Engage Physically... Propagate Digitally
Engage Physically... Propagate Digitally Himalayan Riders Club Of Rider Mania Slideschool One Ride Odyssey Europe Continental GT Seema Bhawani 90° South Cup Shaurya Expedition The largest, fastest growing Strong global digital On-ground and on-line and the most engaged community with very high ‘Digi
Slide 33: Building a strong digital community
Building a strong digital community Himalayan Alpinestars X Busted Knuckles #LEPB Adventure Mustang Royal Enfield Build Off Environment Day Total Average Total Reach* Engagement Engagement per 38.1 M 2.8 M Brand post Tornadoes 4364 Militaria Monument Wall Total Views Engagement 10.1 M Rate^ Classic
Slide 34: Hybrid Engagement Leading to Strong Consumer Equity
Hybrid Engagement Leading to Strong Consumer Equity #1 86% Consideration #1 53% Top of Mind Awareness 2,800 bps ahead of our closest competitor 3,900 bps ahead of our *Internal Kantar report on Brand Health closest competitor Track - June’2022 scores ▪ Among the host of brand health metrics tracked
Slide 35: Business Performance
Business Performance INVESTOR PRESENTATION 34 August 2022
Slide 36: Consistent Delivery leading to strong cash accruals
Consistent Delivery leading to strong cash accruals All figures are in INR Crs unless specified Sales Volume Market Share* (India) Total Revenue (in Thousands) Total revenue from operations (net of excise duty) EBITDA and Margins Profit After Tax Net Cash Net Cash = Cash and cash equivalent – Total
Slide 37: YTD FY23 Highlights - Eicher Motors Ltd. (Standalone)
YTD FY23 Highlights - Eicher Motors Ltd. (Standalone) All figures are in INR Crs unless specified Sales Volume Market Share* (India) Total Revenue (in Thousands) Total revenue from operations (net of excise duty) EBITDA and Margin Profit After Tax 36 * Market Share in above 125cc segment Source - SI
Slide 38: Multiple Management Actions Taken to Optimize Cost Base
Multiple Management Actions Taken to Optimize Cost Base Business Material Employee Fixed Marketing Top Line Cost Cost Overhead Spend s Selling Price Material Cost control People Cost ▪ Restricted travel & ▪ Sharper Digital reset actions: initiatives: Initiatives: training resulted in marketing ▪ Ini
Slide 39: Awards and Achievements
Awards and Achievements All-New CLASSIC 350 BEST OF 2021 VIEWER’S CHOICE BIKE MOTORCYCLE OF THE YEAR OF THE YEAR RETRO BIKE OF MODERN CLASSIC BIKE BEST MODERN CLASSIC THE YEAR OF THE YEAR (LIGHTWEIGHT) METEOR 350 RETRO BIKE OF BEST BEGINNER COOLEST MOTORCYCLE OF THE YEAR MOTORCYCLE THE YEAR BEST MOD
Slide 40: RE in Summary
RE in Summary Poised to become the first premium global consumer brand from India Strong Brand Best-in-Class Extensive Non Products Network Motorcycle Solution Processes and systems People Sustainability: ESG INVESTOR PRESENTATION 39 August 2022
Slide 41: VE Commercial Vehicles Limited
INVESTOR PRESENTATION 40 August 2022
Slide 42: What drives us….Vision & Values
What drives us….Vision & Values To be recognised as Respect the industry leader Fair and Ethical driving modernization in commercial Excellence transportation in India Customer Centric and the developing world Passion INVESTOR PRESENTATION 41 August 2022
Slide 43: Businesses…Eicher Trucks and Buses, Volvo Trucks & Buses in India
Businesses…Eicher Trucks and Buses, Volvo Trucks & Buses in India, Drivelines and Components Eicher Trucks VECV Bus Division Engineering Engines & Drivetrain Volvo Trucks Components INVESTOR PRESENTATION 42 August 2022
Slide 44: Joint Venture since 2008… Merging the best of both worlds
Joint Venture since 2008… Merging the best of both worlds ▪ Global expertise ▪ Leadership in Light & Medium Duty segments ▪ Leadership in product technology ▪ Frugal engineering & operations ▪ Well defined processes and controls ▪ After sales infrastructure ▪ Brand image ▪ Cost effective operations
Slide 45: VECV JV Capability and Market Position strengthened over past 13 years
VECV JV Capability and Market Position strengthened over past 13 years… Successful synergies based on trust, mutual respect & win-win 2008-2013 JV formation and initial 2013-2020 2021 > Next step synergies Synergy projects Wave 2 Synergy -Commercial focus ▪ Product development initiatives ▪ Launched
Slide 46: Strengthened market share in all segments driven by modernisation
Strengthened market share in all segments driven by modernisation Light & Medium Duty Trucks Heavy Duty Trucks 29.3% 6.6% 25.3% 1.3% FY 2009 FY 2022 FY 2009 FY 2022 Buses Volvo Trucks India* 21.6% 83.9% 5.3% 72.6% FY 2009 FY 2022 FY 2009 FY 2022 *Market share in high end premium segment INVESTOR PRE
Slide 47: Consistent financial performance despite headwinds
Consistent financial performance despite headwinds All figures are in INR Crs unless specified Total CV# Volumes and Market Share Total Revenue (in nos and %) Total revenue from operations (net of excise duty) EBITDA^ and Margins Profit After Tax CV# - Commercial Vehicles EBITDA – Earning Before Int
Slide 48: YTD Financial Highlights - VE Commercial Highlights
YTD Financial Highlights - VE Commercial Highlights All figures are in INR Crs unless specified Total Revenue Total revenue from operations EBITDA^ and Margins Profit After Tax EBITDA – Earning Before Interest ,Tax, Depreciation and Amortisation ^For the purpose of EBITDA computation, only interest
Slide 49: Eicher BSVI Product Portfolio…Renewed range
Eicher BSVI Product Portfolio…Renewed range. Broad application segment coverage Sub 5T – 16T 4.9T to 16T Haulage 2.8CuM to 6.5CuM Tippers 18.5T to 55T 18.5T to 47.5T Haulage 7 CuM to 32 CuM Tippers/ Tip Trailers 39.5T to 55T Tractor Trailers 12 – 62 Seater Starline (School, Staff, RP) Skyline (Schoo
Slide 50: VECV Bus Division…Shaping the future of Indian Bus Industry
VECV Bus Division…Shaping the future of Indian Bus Industry Volvo Buses + Eicher Buses Distinct Comprehensive Offer Eicher & Volvo Brands New Markets & E-Mobility Transferred Volvo Buses India operations and people into VECV in 2020 to create an industry leader INVESTOR PRESENTATION 49 August 2022
Slide 51: Eicher Establishes New Standard In Inter-city Luxury Bus Travel
Eicher Establishes New Standard In Inter-city Luxury Bus Travel With New Coach & Sleeper Platform INVESTOR PRESENTATION 50 August 2022
Slide 52: Electric range… 9m bus for city application ready for commercialization
Electric range… 9m bus for city application ready for commercialization INVESTOR PRESENTATION 51 August 2022
Slide 53: Volvo Trucks India Introduced Next Generation Trucks
Volvo Trucks India Introduced Next Generation Trucks New Range of Volvo FM and FMX trucks introduced catering to the mining, construction & infrastructure and on-road transportation segments Volvo FY22 market share ~84% INVESTOR PRESENTATION 52 August 2022
Slide 54: Manufacturing… enhanced with Volvo buses and Industry 4.0 Bhopal plant
Manufacturing… enhanced with Volvo buses and Industry 4.0 Bhopal plant Vehicle Assembly plant - Bhopal Eicher Engineering Components – Unit I & Truck Plant-Pithampur II – Dewas Plant Truck Plant-Bhopal VE Powertrain – Pithampur Industrial Gear Box for Chassis Assembly Line - Bhopal Export (SEZ) – Pi
Slide 55: Strengthening distribution and service reach….#1 in Dealer Satisfaction
Strengthening distribution and service reach….#1 in Dealer Satisfaction #1 in Dealer Satisfaction* 660+ network count *Federation of Automobile Dealers Associations (FADA) Survey 2021 INVESTOR PRESENTATION 54 August 2022
Slide 56: Leading in Digitization…Focus on My Eicher App roll out
Leading in Digitization…Focus on My Eicher App roll out Digital Customer Digital Business Digital Enterprise INVESTOR PRESENTATION 55 August 2022
Slide 57: Awards and Accolades
Awards and Accolades CV of the Year ICV Cargo Carrier Of The Year awarded Received Apollo CV Award for LCV- ICV People Mover of to Eicher Pro 2114 XP CNG the Year for Skyline Pro 3010 L CNG staff bus Volvo 9400 B8R 13.5m Coach won the Coach Of The Year at Apollo CV Awards INVESTOR PRESENTATION 56 Au
Slide 58: ESG
ESG INVESTOR PRESENTATION 57 August 2022
Slide 59: Themes for Sustainability Journey
Themes for Sustainability Journey Environmental Social Governance ▪ Become water positive ▪ Ride for a cause ▪ Strategy, execution and ▪ Attain Carbon neutrality ▪ Disaster relief activities monitoring ▪ Work towards zero liquid discharge ▪ Village upgradation programmes ▪ Risk management ▪ Eliminat
Slide 60: Sustainability Efforts Gather Steam
Sustainability Efforts Gather Steam DJSI Inclusion Sustainability 4.0 Award 2021 In November 2021, Eicher Motors Limited made its debut In December 2021, Royal Enfield (A Unit of Eicher Motors on Dow Jones Sustainability Index (DJSI) 2021 - Emerging Limited) was recognized with the "Challengers Awar
Slide 61: Green Business Operations
Green Business Operations Energy and Emissions Conservation, efficiency, renewable energy, reduced emissions Minimise emission in raw material extraction and Reduce production amount of waste to Material Water and Effluent landfill EML Recycled material and Recyclable EML Rainwater Harvesting ZLD, m
Slide 62: Passion with Responsibility
Passion with Responsibility India USA Europe Committed to drive an active agenda towards Committed to support the affected communities the sustainability and the environment at large during the pandemic ■ Royal Enfield announced its partnership with Helmets For India; aimed at ■ India: INR. 60 Crs w
Slide 63: EML Board: Leaders with proven track record
EML Board: Leaders with proven track record S Sandilya Siddhartha Lal B. Govindarajan Chairman- Non-Executive and Managing Director and CEO, CEO - Royal Enfield, Whole Independent Director EML Time Director Vinod K. Aggarwal Inder Mohan Singh Manvi Sinha Non-Executive Director Independent Director I
Slide 64: Royal Enfield managed by seasoned professionals
Royal Enfield managed by seasoned professionals Siddhartha Lal B. Govindarajan Kaleeswaran CEO – Royal Enfield Mark Wells Mohit Dhar Jayal Managing Director and CEO, Arunachalam Chief of Design Chief Brand Officer EML Chief Financial Officer Sudhakar Yadvinder S. Guleria Simon Warburton Rajeev Sharm
Slide 65: VECV Board…Proven track record of value delivery
VECV Board…Proven track record of value delivery Siddhartha Lal Joachim Rosenberg Vinod Aggarwal Chairman of the Board Jan Gurander EVP Volvo Group Managing Director & CEO MD Eicher Motors Ltd Deputy CEO Volvo Group President Volvo Energy VECV Philippe Divry Raul Rai Lila Poonawalla Inder Mohan Sing
Slide 66: VECV Management … Deep experience in Indian & Global CV industry
VECV Management … Deep experience in Indian & Global CV industry BK Bindiganavile SVP Strategy, Brand & Finance, Legal & Communication Audit Vinod Aggarwal MD & CEO Sudeep Dev Businesses Processes Rajesh Mishra SVP & CHRO Human and IT CDO Resources Volvo Eicher Trucks and Buses, VEPT Bus Division EE
Slide 67: Strong Governance Principles
Strong Governance Principles EML and VECV are compliant with applicable regulations No related party suppliers Board Sub-committees at EML with majority representation by independent directors and at VECV with Non-Executives No delinquencies towards banks/ institutions Professional management at CXO
Slide 68: Financials
Financials INVESTOR PRESENTATION 67 August 2022
Slide 69: Profit and Loss Statement (Consolidated)
Profit Profitand andLoss LossStatement Statement(Consolidated) (Consolidated) (In INR Cr.) Profit and Loss Account FY17 FY18 FY19 FY20 FY21 FY22 Q1 FY23 Sales Volume: Two Wheelers (Nos.) 666,135 820,121 822,724 697,582 609,403 595,474 186,032 Total revenue from operations (net of excise) 7,033 8,965
Slide 70: Balance Sheet (Consolidated)
Balance Sheet Profit and Loss(Consolidated) Statement (Consolidated) (In INR Cr.) Particulars FY17 FY18 FY19 FY20 FY21 FY22 Net Fixed Assets (including CWIP and Pre-operative 1,247 1,835 2, 324 2,690 2,748 2,929 Expenditure) Investments 4,987 5,581 4,923 5,749 3,902 7,721 Other Non Current Assets 26
Slide 71: Statement of Cash Flows (Consolidated)
Statement Profit and of Cash Loss Flows (Consolidated) Statement (Consolidated) (In INR Cr.) Particulars FY17 FY18 FY19 FY20 FY21 FY22 Profit before tax and after share of profit of Joint venture 2,433 3,116 3,297 2,355 1,798 2,203 Operating profit before changes in working capital 2,196 2,851 2,941
Slide 72: Glossary
Glossary ▪ CAGR – Compounded Annual Growth Rate ▪ LCV – Light Commercial Vehicles ▪ Consolidated – Consolidated includes financials of Royal Enfield, VE Commercial ▪ LMD – Light and Medium Duty Vehicles and 50% of Eicher Polaris Pvt. Ltd. ▪ MHCV – Medium and Heavy Commercial Vehicles ▪ CV – Commerci
Slide 73: Thank You
Thank You Get Social Royal Enfield Royal Enfield Royal Enfield INVESTOR PRESENTATION August 2022