Ashok Leyland Limited · NSE:ASHOKLEY
Ashok Leyland — Investor Presentation (2016)
34 slides from Ashok Leyland's investor presentation, 2016
Slide 1: Ashok Leyland Investor Presentation
Ashok Leyland Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Ashok Leyland Limited (“Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminated, d
Slide 3: Contents
Contents • Company • Challenge • Transformation • Road ahead 3 Ashok Leyland Investor Presentation
Slide 4: Company
Company 4 Ashok Leyland Investor Presentation
Slide 5: Hinduja Group
Hinduja Group Presence in More than 37 countries 70,000 employees Business interests Ashok Leyland- across several verticals flagship of Hinduja Group 5 Ashok Leyland Investor Presentation
Slide 6: Hinduja Group: Businesses
Hinduja Group: Businesses Global BFSI International Initiatives Investments • Hinduja Bank, Trading • Healthcare • Automotive Switzerland • British Metal • Education • Oil & Gas • Indus Ind Bank Corporation • Social Welfare • Power • Hinduja Pvt. Ltd. • Arts & Culture • Information Leyland • Sports
Slide 7: Leading MHCV player in India
Ashok Leyland Leading MHCV player in India History of innovation 67 years of • Multi-axle trucks continuous • Articulated buses profits • Air brakes • CNG vehicles • Tractor Trailers Presence in Trucks, 4th largest Bus and 14th largest Truck Exports Buses, Defence, and to 34 countries Power solution
Slide 8: History & milestones
History & milestones 8 Ashok Leyland Investor Presentation
Slide 9: Profitable since inception
Profitable since inception 140 Sales volume (‘000s) 114 102 105 94 89 83 83 55 62 64 49 54 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY13 FY 14 FY 15 FY 16 198773 Sales revenue (gross) - Rs. Million 137208 132985 144859 121530 105608 83047 89471 78726 60531 66666 39273 48108 FY 04 FY 05
Slide 10: Challenge: 2012-2014
Challenge: 2012-2014 Ashok Leyland Investor Presentation
Slide 11: Industry collapsed
Industry collapsed +13% 363 +32% 320 -21% 286 242 -27% 208 FY ’10 FY ’11 FY ’12 FY ’13 FY ’14 Total Industry Volume in ‘000s 11 Ashok Leyland Investor Presentation
Slide 12: New competitors arrived
New competitors arrived <1997 1997 - 2010 >2010 Total Industry 99,000 244,000 265,000 Volume Players 2 5 10 12 Ashok Leyland Investor Presentation
Slide 13: High investments leading to high breakeven
High investments leading to high breakeven 60,000 58,444 55,000 50,000 45,000 40,816 40,000 36,147 35,000 30,000 Rs. Million 25,000 34,717 20,000 15,000 10,000 22,297 5,000 6,099 0 in 60 years ie., up to FY 08 in 5 yrs FY ’09 - FY ’13 Capital expenditure Investments (Equity) 13 Ashok Leyland Investo
Slide 14: Huge debt
Huge debt 50,000 1.42 1.5 45,000 47,217 40,000 1.08 1.08 35,000 0.96 0.91 1.0 Debt Equity (times) 34,534 30,000 27,067 35,795 24,350 24,576 25,000 Rs. Million 20,000 29,962 0.5 15,000 19,581 21,273 24,784 10,000 5,000 11,422 4,769 3,303 4,572 0 2,283 0.0 FY ’09 FY ’10 FY ’11 FY ’12 FY ’13 Debt equit
Slide 15: Transformation
Transformation Ashok Leyland Investor Presentation
Slide 16: Restructure for growth
“Restructure for growth” RESTRUCTURE: Manpower Fixed costs Working Capital Debt Non-core assets GROWTH: New products Network Exports New business Capabilities 16 Ashok Leyland Investor Presentation
Slide 17: Focus on operational efficiency
Focus on operational efficiency 2013-14 2014-15 2015-16 Fixed cost reduction Material cost reduction PRISM Sales and Marketing Excellence LEAD Leverage analytics to drive decisions Warranty cost reduction Customer vehicle configurator 17 Ashok Leyland Investor Presentation
Slide 18: New Products contributed to our growth
New Products contributed to our growth JanBus U3718 Boss Captain 40-iT 18 Ashok Leyland Investor Presentation
Slide 19: Enhanced our network for sales and service
Enhanced our network for sales and service 1462 1289 1114 No. of outlets 746 557 FY12 FY13 FY14 FY15 FY16 SASSY Dealership Workshop on wheels Authorised Service Center Network Locator 19 Ashok Leyland Investor Presentation
Slide 20: Restructuring made us leaner
Restructuring made us leaner September March Initiatives 2013 2016 Manpower 12536 10352 Other expenses 11.6% 10.5% (% of Sale revenue) 13720 -222 Working capital (Rs. Million) (44 days) (0 days) Debt (net) (Rs. Million) 60510 11508 Debt Equity (times) 2.2: 1 0.24:1 Non-core assets disposed -- 16178
Slide 21: New products and expanded network enhanced market share
New products and expanded network enhanced market share Total Industry volume in ‘000s MS % MHCV Market share Total Industry Volume 21 Ashok Leyland Investor Presentation
Slide 22: FY 2015-16: A record year of growth
FY 2015-16: A record year of growth MHCV sales 109,762 Nos MHCV production 112,537 nos Revenue 188,216 Million Operating PAT 11,112 Million 22 Ashok Leyland Investor Presentation
Slide 23: Road ahead
Road ahead Ashok Leyland Investor Presentation
Slide 24: Environment trends
Environment trends • GDP growth in India to be steady • Growth in road projects, smart cities, mining • Regulations on emissions and safety • Guidelines on voluntary fleet modernization 24 Ashok Leyland Investor Presentation
Slide 25: Growing customer expectations
Growing customer expectations • Driver comfort and safety • Rigorous duty cycles • Enhanced product reliability • Digitally connected vehicles 25 Ashok Leyland Investor Presentation
Slide 26: Transformation initiatives
Transformation initiatives 1 2 3 Defend Set foundation Grow acyclical domestic for businesses Strategies market share international faster for growth expansion 4 Enhance productivity and asset utilization Strategic 5 Build culture of performance & innovation enablers 6 Win together with all our stak
Slide 27: 1. Defend domestic market share
1. Defend domestic market share • Build and enhance product portfolio • Expand network of touch-points • Enhance customer engagement 27 Ashok Leyland Investor Presentation
Slide 28: 1. Defend domestic market share (contd.)
1. Defend domestic market share (contd.) • Drive 2nd hemisphere innovation • Leverage digital technology • Develop Electric & Hybrids 28 Ashok Leyland Investor Presentation
Slide 29: 2. Set foundation for international expansion
2. Set foundation for international expansion CIS Middle East ASEAN Africa South Asia South America 29 Ashok Leyland Investor Presentation
Slide 30: 3. Grow acyclical businesses faster
3. Grow acyclical businesses faster 30 Ashok Leyland Investor Presentation
Slide 31: 4. Enhance productivity and asset utilization
4. Enhance productivity and asset utilization Enhance supply-chain productivity Reduce Variable costs Reduce Warranty costs Reduce Overheads 31 Ashok Leyland Investor Presentation
Slide 32: 5. Build culture of performance and innovation
5. Build culture of performance and innovation ELP Emerging Leaders Program Developing future leaders Innovation program LEAPS Leadership Excellence Awards for Problem Solving Rewards & recognition 6-sigma problem solving Research Papers and Patents 32 Ashok Leyland Investor Presentation
Slide 33: 6. Win together with all stakeholders
6. Win together with all stakeholders Investors Suppliers Customers Dealers Community 33 Ashok Leyland Investor Presentation
Slide 34: Thank You
THANK YOU