Ashok Leyland Limited · NSE:ASHOKLEY
Ashok Leyland — Investor Presentation (June 2023)
133 slides from Ashok Leyland's investor presentation, Jun 15, 2023
Slide 1: Intimation of schedule of investors meeting
June 15, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers C-1, Block G Dalal Street Bandra Kurla Complex Mumbai - 400 001 Bandra (E), Mumbai - 400 051 SCRIP CODE: ASHOKLEY SCRIP CODE: 500477 Dear Sir/Madam, Sub: Intimation of schedule of several / i
Slide 2: Ashok Leyland Investor Meet 2023
Ashok Leyland Investor Meet 2023 15th June 2023
Slide 3: Disclaimer
Disclaimer This presentation is for the consumption of a focused group of persons and is for information only This presentation is the property of Ashok Leyland Limited (“Company") and is subject to market conditions, risks and underlying assumption. This being a propriety material of the Company, t
Slide 4: The Hinduja Group
The Hinduja Group Our Founder’s Guiding Principles Work to Give Word is a Bond Act Local, Think Global Partnership for Growth Advance Fearlessly Shri. Parmanand Deepchand Hinduja (1901 – 1971) 3 Source: Company information.
Slide 5: The Hinduja Group
The Hinduja Group A Centenary of Entrepreneurship Automotive Oil & Specialty Banking & Information FOUNDED IN 1914 Chemicals Finance Technology INDUSTRY VERTICALS 11 Cyber Media & Energy Security Distribution PERSONNEL 200000+ COUNTRIES 38 Project Real Estate Healthcare Trading Development 4 Source:
Slide 6: Ashok Leyland – Hinduja Group Automotive Flagship
Ashok Leyland – Hinduja Group Automotive Flagship 75 years of Mobility ▪ 1948 Established ▪ 1987 Acquired by Hinduja / IVECO ▪ 2007 Self Reliance in MHCV ▪ 2011 Extended Product range with introduction of LCV ▪ 2020 Modular Platform of Trucks 5
Slide 7: Our Purpose
OUR PURPOSE Transforming Lives and Businesses through Leadership in Mobility
Slide 8: Our Vision
OUR VISION To bea Top 10 Global CV Player creating reliable and differentiated products and solutions, while delivering outstanding stakeholder value
Slide 9: Key Differentiation – People
Key Differentiation – People Homegrown • More Than 80% of the Leadership Team is Homegrown Leadership & • More than 90% of Senior management team are Career AL employees Management • More than 75% of population are Engineers Engineering • Focussed Groups on Innovation & Future Competence technologie
Slide 10: AL Board of Directors
AL Board of Directors Mr. Dheeraj G. Hinduja Dr. Andreas H Biagosch Dr. C. Bhaktavatsala Rao Mr. Jean Brunol Mr. Jose Maria Alapont Executive Chairman Independent Director Non-Executive Director Independent Director Independent Director Former Exec Board Former Exec Chairman & Former SVP Federal For
Slide 11: Our Team Today
Our Team Today Shenu Agarwal Gopal Mahadevan Dr N Saravanan Ganesh Mani MD & CEO Director & CFO CTO Chief of Operations Sanjeev Kumar Amandeep Singh KM Balaji President – MHCV President – LCV, Exports, Defence & PSB Deputy CFO 10
Slide 12: Our Values
OUR AGT, VALUES TRUST CUSTOMER CENTRICITY, PARTNERSHIP
Slide 13: Key Differentiation – Technology
Key Differentiation – Technology Self Reliance in Multiple Power Trains & Vehicle Architectures 2008 2013 2020 2022 2023 8 Litre Engine Next Gen Cab AVTR MHCV Truck EV Double Deck Launch H2 ICE Trucks H2 FC EV Truck Homologated LNG Truck MD15 Methanol Buses M100 Methanol Truck 12
Slide 14: Ashok Leyland – Expanding Horizons
Ashok Leyland – Expanding Horizons Opportunity Enhancement into Allied Avenues HINDUJA LEYLAND FINANCE HINDUJA Engineering Mobility HOUSING FINANCE 13
Slide 15: Road To School
Road To School Towards “Making a Difference to over 1 Million Children” ▪ Initiated at Hosur in 2015 ▪ Presently covering 5 states ▪ Extended into Road to Livelihood 4000+ 31000+ 70000+ 190000+ students students students students 2015 2018 2020 2022 1000000+ STUDENTS 14
Slide 16: ESG: Focus Areas & Targets
ESG: Focus Areas & Targets Environment Preparing for Large Commitments ▪ Carbon neutrality ▪ Water positive Carbon Neutral ▪ Resource efficiency Operations 2030 ▪ Diversity, Equity & inclusion Social ▪ Community development ▪ Health and safety ▪ Fair Labour practices Zero @ 100 Governance ▪ Board in
Slide 17: Koi Manzil Door Nahin
@ ASHOK LEYLAND Koi Manzil Door Nahin SS
Slide 18: Growth Strategy
Growth Strategy Shenu Agarwal Managing Director & CEO 17
Slide 19: FY23 - Remarkable Year for AL
FY23 - Remarkable Year for AL Turnaround in MS & EBITDA in Last 6 Quarters 32.9% 32.0% 32.0% MHCV MS% 30.4% 30.0% 22.4% → 32.0% 26.1% 22.4% 11.0% EBITDA% 8.9% 8.8% 3.0% → 11.0% 6.5% 4.0% 4.4% 3.0% 1276 776 797 Quarter EBITDA (Rs. Cr) 537 135 → 1276 320 224 135 Q2FY22 Q3 Q4 Q1FY23 Q2 Q3 Q4 18
Slide 20: FY23 - Remarkable Year for AL: MHCV Domestic
FY23 - Remarkable Year for AL MHCV Domestic ▪ MS 31.8 % ➔ ~5% increase YoY ▪ Price realization ➔ ~7% Truck and ~5% Bus ▪ Holistic growth ➔ Product Segments & Geographies ▪ Parts Sales Revenue ➔ 31% Increase YoY 19
Slide 21: FY23 - Remarkable Year for AL: LCV, International
FY23 - Remarkable Year for AL LCV Domestic ▪ LCV: Highest ever Volume @67k ▪ LCV: Price realization ➔ ~5%; Higher margins in-spite of competition pressures International Operations ▪ Other OEM’s volume dropped ~30%, AL volumes up 2% Power Solutions Business ▪ Volume ➔ 9% Up; Revenue ➔ 26% Up 20
Slide 22: FY23 - Remarkable Year for AL: Financial Performance
FY23 - Remarkable Year for AL Financial Performance ▪ Highest-ever Revenue ➔ 36,144 Cr (67% Growth YoY) ▪ 3X EBITDA, 995 Cr ➔ 2,931 Cr ▪ 119X Operating Profit*, 17 Cr ➔ 2,026 Cr ▪ Highest Ever Material Cost Savings ▪ No Debt ➔ Cash surplus of 273 Cr at FY23 end 21 * Before exceptional items
Slide 23: FY23 - Investing in a New Future
FY23 - Remarkable Year for AL Investing in a New Future ▪ Auto Expo 2023 ➔ CNG, LNG, BEV, H2ICE, FCEV ▪ Investing in Switch (Electric Buses & LCVs) & Ohm (e-MaaS) ▪ Brand ➔ New Tagline: “Koi Manzil Door Nahi” ▪ DEI ➔ All-women Production Line @ Hosur ▪ ESG ➔ Preparing for Zero @ 100 ▪ Road to school
Slide 24: Macro Tailwinds
Macro Tailwinds India’s GDP is $3.5 Trillion in FY23 Increasing Capex as % of GDP 3.3% To reach $5 Trillion before FY30 3.5% 24.0% % of GDP % of TE 22.0% 3.0% 2.7% 8.0% 8.3% 9.1% 2.5% 22.2% 20.0% 6.8% 6.5% 7.2% 6.5% 2.5% 2.2% 18.0% 3.9% 2.0% 1.7% 17.4% 16.0% 1.5% 1.6% 15.6% 14.0% 1.5% 12.0% 12.3% 13
Slide 25: CV Growth Drivers
CV Growth Drivers Strong Replacement Demand Potential Truck Market expected to grow 4X by 2050 Average Age of MHCV increased to 10Y Truck stock (millions) 60.0 10.5 MHCV population (in Lakhs) MDT and HDT Tonne-km (trillion) Average of MHCVs (No.of years) 9.9 10.0 50.0 10.0 9.5 40.0 9.5 9.0 9.6 30.0
Slide 26: Growth Strategy: MHCV Business
Growth Strategy MHCV Business – Confidently Moving to 35%+ MS Geographical Play through %MS FY22 FY23 Action Network North 19 25 Expansion Penetrate North : East 21 24 Penetrate Central 30 35 Grow West 29 31 South 36 43 Defend Central Central : All India 27 32 East : 36% Grow 40% Penetrate West : Gr
Slide 27: Growth Strategy: LCV Business
Growth Strategy LCV Business – Become a Full-range Player Enhance Product & Geography Play 0-2T 2-3.5T 3.5-7.5T North : Penetrate TIV, FY23 193K (35%) 328K (59%) 34K (6%) 20% MS, FY23 - Despite Late 5% Central Central : Entry East : 36% Grow 40% Penetrate Grow to 25% West : Plan to Grow Improve Acti
Slide 28: Growth Strategy: International Business
Growth Strategy International Business – Doubling volumes Progressively Enter More Sophisticated Markets with New Products Market Sophistication Level 1 Level 2 Level 3 Countries SAARC, Africa, GCC ASEAN, GCC CIS, North Africa Addressable Volumes 70,000 +140,000 +40,000 E5/E6, FDSS, Features ABS, AC
Slide 29: Growth Strategy: Driving growth in non CV businesses
Growth Strategy Driving growth in non CV businesses Defence Mobility Aftermarket Power Solutions Business Have built capability; Doubled in Last 5 Years to 2000+ Cr; 23,000+ Engine Sales Already; Significant Top Line; Potential to Double Again; With Stringent Emissions, Can Leverage Manyfold Moving
Slide 30: Operational Excellence
Operational Excellence Efficiency, Cost control, Flexibility BS III BS IV BS VI Highest ever material 77.3% 77.1% cost savings achieved 80.0% 74.5% 78.0% 76.0% in FY23 71.2% 70.8% 74.0% 69.4% 69.9% 72.0% Unprecedented 70.0% Inflation 68.0% 66.0% 64.0% 13973 18431 20680 12369 11403 16761 27849 62.0%
Slide 31: Key Goals Going Forward
Key Goals Going Forward 1 2 3 Next-Gen Products: MHCV Market share: LCV & IO: Ready in next 24 months Safely at above 30% and Grow in North & East; with all Alternate Fuels; confidently moving to 35%+ Plan sub-2T entry ; Invest in Switch & Ohm Expand IO portfolio 4 5 6 Driving growth in Pursue Super
Slide 32: Driving Technology Leadership
Driving Technology Leadership Dr. N Saravanan Chief Technology Officer 31
Slide 33: DNA of being Industry-First
DNA of being Industry-First Working for last 8 years – Aim to Play a Leading Role 2021 2022 2023 2015 2019 BEV Bus Trial BEV BRTS Service BEV LCV Trial BEV Double Decker Launch H2 ICE Trucks H2 FC EV Truck Homologated LNG Truck MD15 Methanol Buses M100 Methanol Truck 32
Slide 34: Decade of Energy Transition
Decade of Energy Transition New Energy Pursuit CNG CNG H2 LNG ICE Propelled + - + - H2 Motor Propelled 33
Slide 35: Key Technologies for De-Carbonization
Key Technologies for De-Carbonization Alternate Fuel / Powertrains Trend (Next 10 Years) CNG LNG BEV H2 ICE H2 FC LCV ICV Trucks ICV Buses M&HCV Trucks MDV Buses Likely Trend Driven by TCO & Government Subsidy Green & Green for Heavy Key Drivers Increased CNG push of LNG & TCO Leverages IC Vehicles;
Slide 36: Collaborations
Collaborations High Low Ensuring Readiness & Speed to Market Partners for Technology Readiness Partners for Market Deployment 35
Slide 37: Skill Enhancement
Skill Enhancement High Low Gearing up the Workforce for the Future Needs Key Skills Targeted Reskilling & New Recruitment Engine Performance, FE, & Headcount Mix Calibration Emissions Compliance Vehicle BMS, FC, Controls Motor Controls FY21 FY22 FY23 FY24 FY25 Core ReSkill New Embedded Software Syst
Slide 38: Modular Architecture
Modular Architecture High Low Only OEM in India to offer Modular Range of Vehicles Common Interface One Platform – Over 6 Lakh Variants Configurable Vehicles Multiple Modules 37
Slide 39: Modularity – A Unique Advantage
Modularity – A Unique Advantage High Low Fastens our transition to Alternate Energy Propulsion CNG LNG H2 + - H2 38
Slide 40: Showcasing the Future – Auto Expo 2023
Showcasing the Future – Auto Expo 2023High Low CNG, LNG, H2 ICE, H2 FC, BEV Trucks Fully Operational Future Range 39
Slide 41: Ashok Leyland – New Energy Portfolio
Ashok Leyland – New Energy Portfolio High Will be ready in next 2 years – across fuel types, across segments H2 + - Diesel CNG LNG H2 ICE H2 FC BEV M&HCV Trucks P P P P P AVTR Long Haul Trucks P P P P P AVTR ICV Truck P P P P E-Comet Boss LCV Goods P P P Dost Bada Dost Partner MCV Bus P P P P P P Vi
Slide 42: Stepping Further: Other Technology Advancements
Stepping Further High Low Other Technology Advancements – For India & the World Flywheel Hybrid Predictive Maintenance Advanced Driver Accelerated Development Assistance Systems ✓ Energy recuperation and ✓ Actionable Insights using vehicle ✓ Exploration in progress – ✓ Faster , Optimized Designs to
Slide 43: Pioneers Always
Geared Up For the Future Keeping Alive - The Ashok Leyland’s Legacy Consistent Evolution & Industry leading Innovations Across Propulsions +- Consistent Upskilling for workforce to cater Future Tech Practising Modular Philosophy as the way of life PIONEERS ALWAYS 42
Slide 44: MHCV Business
MHCV Business Sanjeev Kumar President – MHCV 43
Slide 45: FY23 Performance, Industry Outlook, FY24 Roadmap
FY23 INDUSTRY FY24 PERFORMANCE OUTLOOK ROADMAP 44
Slide 46: FY23 Volumes
FY23 VOLUMES GROWTH IN 48 % MHCV TIV GROWTH IN 78 % AL VOLUMES 45
Slide 47: FY23 MS: Market Share Gained with Increased Margins
FY23 MS MARKET SHARE GAINED ~ 5% WITH INCREASED MARGINS 30.4% 32.0% 32.9% 32.0% 35.0% 30.0% 125000 30.0% 26.1% 25.0% 22.4% 75000 20.0% 15.0% 53.4k 63.9k 94.0k 75.7k 79.7k 85.7k 118.0k 25000 10.0% Q2FY22 Q3 Q4 Q1FY23 Q2 Q3 Q4 46 Market Share % TIV
Slide 48: AL Well Positioned for Segmental Shift
AL WELL POSITIONED FOR SEGMENTAL SHIFT 100% TIPPER 17% 20% 19% LONG HAUL 90% 21% 22% 27% GAINING 80% 70% 21% 22% M U LT I A X L E 3 3 % 22% 60% 30% 18% MOMENTUM 9% 50% 9% 12% 16% BUSES 12% 10% T R A C TO R 1 6 % 10% 9% 8% 40% REVIVAL 7% HAULAGE 30% 7% 22% 20% 22% UNDERWAY 26% 18% ICV TRUCK 20% 16% C
Slide 49: Winner Products Across Segments
WINNER PRODUCTS ACROSS SEGMENTS 4825 DTLA 5525 Tractor Ecomet 1615 Ecomet 1815 N4825 Tipper Viking MAV KMPL: 5%▲ KMPL: 14%▲ KMPL: 8%▲ KMPL: 12%▲ KMPL: 16%▲ KMPL: 2%▲ DEF: 18%▼ DEF: 20%▼ DEF: 18%▼ DEF: 22%▼ DEF: 27%▼ DEF: 11%▼ VOLUMES FROM 48k TOP MODELS 48
Slide 50: Network: Outlets Added in FY23
NETWORK NO OF MHCV OUTLETS 809 OUTLETS 79 ADDED IN FY23 679 730 FY21 FY22 FY23 49
Slide 51: FY23 Performance, Industry Outlook, FY24 Roadmap
FY23 INDUSTRY FY24 PERFORMANCE OUTLOOK ROADMAP 50
Slide 52: MHCV Industry Megatrends
MHCV INDUSTRY MEGATRENDS POLICY UPGRADES CUSTOMERS PM Gati Shakti Rising Costs – Vehicle, Fuel, Interest National Logistics Policy Long term loans Scrappage Policy Leasing Solutions National Infrastructure Pipeline Driver Shortages PRODUCT F U E L S & F E AT U R E S Customized to application Compres
Slide 53: FY23 Performance, Industry Outlook, FY24 Roadmap
FY23 INDUSTRY FY24 PERFORMANCE OUTLOOK ROADMAP 52
Slide 54: Plan for Sustaining Profitable Market Share Growth
PLAN FOR SUSTAINING PROFITABLE MARKET SHARE GROWTH S U S TA I N P R O D U C T CONTINUED PORTFOLIO NETWORK COMPETITEVENESS E X PA N S I O N 1 2 D I F F E R E N T I AT I N G 3 4 ENHANCED AFTERMARKET CUSTOMER SOLUTIONS CONNECT 53
Slide 55: Targeting 35% MS
TARGETING 35% MS ▪ Zone-wise mandates to achieve targets ▪ Accelerate growth in high head-room markets North : Penetrate such as North and East ▪ Grow Western and Central markets into Central Central : East : 36% Grow 40% Penetrate West : strongholds Grow ▪ Defend and extend leadership position in S
Slide 56: Robust Product Launch Pipeline
ROBUST PRODUCT LAUNCH PIPELINE CONVENTIONAL FUELS ALTERNATE FUELS LNG BEV EDPTO RMC 1925 Tipper Ecomet Ecomet 1915 High power Tippers & Tractors Tipper FCEV ESC on Trucks Ecomet CNG 4825 OL Tipper 1922 CNG H2ICE PORTFOLIO COMPETITEVENESS Lynx Smart CNG Indigenized ULE Oyster Lite CNG Lynx Smart Wide
Slide 57: Legacy of Innovation in Moving People
LEGACY OF INNOVATION IN MOVING PEOPLE 1967 1976 1978 1982 1997 DOUBLE FRONT DOOR REAR ENGINE VESTIBULE CNG DECKER BUS FRONT ENGINE BUS BUS BUS 2008 2012 2016 2023 2024 LOW FLOOR SINGLE STEP ROLL-OVER 13.5M CNG M U LT I - A X L E BUS BUS COMPLIANT BUS COACH SCHOOL BUS 56
Slide 58: Buses: Globally Top 5 - Strategy for Growth
BUSES GLOBALLY TOP 5 - STRATEGY FOR GROWTH ICV BUS PRODUCT ▪ Address product gaps PORTFOLIO ▪ Cost competitiveness MARKET ▪ Coverage ACTIONS ▪ Performance benchmark ▪ Digital marketing O P E R AT I O N A L ▪ Delayed differentiation EFFICIENCY ▪ Managing seasonality PORTFOLIO COMPETITEVENESS S T R AT
Slide 59: Rapid Network Expansion
RAPID NETWORK EXPANSION NO OF MHCV OUTLETS 875 809 730 679 FY21 FY22 FY23 FY24 P F O C U S O N N O R T H , E A S T, NETWORK EXPANSION NORTH-EAST AND KEY MINING POCKETS (COAL, IRON ORE, A G G R E G AT E ) 58
Slide 60: Robust After Sales Support
ROBUST AFTER SALES SUPPORT FULL FLEDGED CUTTING EDGE INFRASTRUCTURE AFTERMARKET SOLUTIONS AFTERMARKET SOLUTIONS 59
Slide 61: Industry Best Skill Development Infra: Service Training Institutes
INDUSTRY BEST SKILL DEVELOPMENT INFRA 12 S E R V I C E T R A I N I N G I N S T I T U T E S AFTERMARKET SOLUTIONS OPERATIONAL LUDHIANA | PANTNAGAR | LUCKNOW | ALWAR | GUWAHATI | AHMEDABAD | PUNE | KOLKATA | BHUBANESHWAR | CHENNAI | NAGPUR | NAMAKKAL 60
Slide 62: Industry Best Skill Development Infra: Driver Training Institutes
INDUSTRY BEST SKILL DEVELOPMENT INFRA 14 D R I V E R T R A I N I N G I N S T I T U T E S 2L+ UPCOMING FY24 MALERKOTLA DRIVERS BATALA KEONJHAR TRAINED NAGPUR LAST BERHAMPUR AFTERMARKET YEAR DHONE SOLUTIONS OPERATIONAL KAITHAL | BURARI | RAILMAGRA | VADOADARA | DAHEJ |JAMBANAGA |HAZIRA | BONAI | CHHAT
Slide 63: Sustained Spare Parts Revenue Growth
SUSTAINED SPARE PARTS REVENUE GROWTH 31 % GROWTH IN SPARE PARTS REVENUE AFTERMARKET SOLUTIONS 62
Slide 64: Loyalty Program for Large Accounts
LOYALTY PROGRAM FOR LARGE ACCOUNTS E L I TE BY A S H O K L E YL A ND Top 2 0 0 F leet O wn ers L oya lt y p ro g ra m ta ilo re d fo r o u r p re miu m CUSTOMER c u sto me rs a ime d towa rd s fo ste rin g d e e p e r CONNECT e n ga ge me nt a n d b u ild in g st ro n ge r re lat io n sh ip 63
Slide 65: Fleet Management Solution
FLEET MANAGEMENT SOLUTION iA L E RT TE L E MATICS S U I TE 1 .6 Lakh veh ic les on road S tate o f t h e a rt te le mat ic s te c h n o lo gy CUSTOMER o ffe re d to f le et o p e rato rs fo r re a l - t ime f le et CONNECT u p d ate s a n d e a sie r f le et ma n a ge me nt 64
Slide 66: Service on the Go
SERVICE ON THE GO A L C A R E – M O B I L E A P P F O R A L L S E RV I C E N E E D S 1 . 9 L a k h re g i s te re d u s e rs A n a ll - e n co mp assin g a p p p rovid in g CUSTOMER co mp re he n sive so lu t io n s to c u sto me rs’ CONNECT af te rma rket re q u ire me nt s 65
Slide 67: Industry Best Parts Fulfilment
INDUSTRY BEST PARTS FULFILMENT L E Y K A R T - PA R T S AT YO U R D O O RS T E P 1 . 6 L a k h re g i s te re d u s e rs A p p licat io n o ffe rin g a h a ssle - f re e , o n e - CUSTOMER sto p - s h o p ex p e r i e n c e fo r p u rc h a s i ng s p a re CONNECT p a rt s a n d lu b rica nt s 66
Slide 68: Used Vehicles E-Marketplace
USED VEHICLES E-MARKETPLACE R E - A L - B U Y, S E L L U S E D V E H I C L ES Tap p in g 1 Lakh b u yer b ase D ig ita l p lat fo rm e n a b lin g c u sto me rs to CUSTOMER exc h a n ge c u rre nt ve h ic le s a n d p u rc ha se CONNECT n ew o n e s 67
Slide 69: In Summary
IN SUMMARY FY23 INDUSTRY FY24 PERFORMANCE OUTLOOK ROADMAP 5% MS GAIN ROBUST PRODUCT, AT HIGHER TAILWINDS NETWORK, MARGINS AFTERMARKET 68
Slide 70: LCV, Exports, Defence & PSB
LCV, Exports, Defence & PSB Amandeep Singh President – LCV, Exports, Defence & PSB 69
Slide 71: LCV Journey
LCV Journey High LCV segment contributes 70% of CV TIV Globally 2014 2017 2007 ❑ Dost plus Launch ❑ Dost RFS Launch ❑ Signing of JV ❑ Bada Dost New platform ❑ Partner, Mitr Launch ❑ Dost CNG RFS launch 2011 2016 2020 ❑ Start of production. ❑ JV bought over ❑ Bada Dost Launch Partner LHD: FY19 ❑ Dost
Slide 72: LCV - Hitting 20% MS despite late entry
LCV - Hitting 20% MS* despite late entry LCV Business is less cyclical, has grown fast and consistently 26% 32% FY23 Volume Growth FY23 Volume Growth Highest Ever Volumes in FY23 since inception Moved to No. 2 Player in the 2 – 3.5T Segment 71 *2-3.5T Segment
Slide 73: Targeting 25% MS (2 - 3.5T)
Targeting 25% MS (2 - 3.5T) Aggressive expansion underway in North and East MS MS TIV 61% 39% 30% 6% AL Vol 88% 12% South, West & Central North & East Network Expansion plan for Product launch plan for North & North & East East in FY24 Dost+ CNG Bada Dost CNG 350 Bada Dost Xpress Bada Dost Ambulance
Slide 74: LCV - Planning Significant Increase in Addressable TIV
LCV - Planning Significant Increase in Addressable TIV Entry into Sub-2T segment AL presence AL – no presence FY19 FY23 FY25 30+ % 50+ % 60+ % 80+ % New Products Bada Dost Platform Bada Dost Platform Bada Dost Xpress Sub 2T Partner/Mitr CNG Bada Dost Ambulance 73
Slide 75: LCV - Have Built Core Capabilities
LCV - Have Built Core Capabilities Digitalization Sales & Service process Customer centric digitization 75K+ enquiries generated per month through AL Reach App (80% of the total enquiries) Industry First 5 year Warranty 40K+ job cards per month raised AL Serve App(60% of the total job cards) After-M
Slide 76: International Operations
International Operations 75
Slide 77: IO – FY23 Performance
IO – FY23 Performance Exports from India CVs (>2T) FY23 vs FY22 Other -30% Indian OEMs Ashok 2% Leyland Total IO SAARC Non - SAARC 11014 11289 6551 4722 4463 6567 FY22 FY23 FY22 FY23 FY22 FY23 76
Slide 78: FY21 – Product Portfolio
FY21 – Product Portfolio High Addressable TIV 80,000 0 – 3.5T 5 – 7T Mini Bus 7M DOST RHD LCV Partner Mitr RHD 9-14T 15-25T Tippers TRUCKS BOSS Cargo Euro V Captain/N (9-25T) (9-12T) Tipper Mini Bus 8M 11M BUS Lynx/Eagle/ Falcon - Oyster 11m 77
Slide 79: FY23 – Product Portfolio Expansion
FY23 – Product Portfolio Expansion High 0 – 3.5T 5 – 7T Mini Bus 7M DOST RHD LCV Phoenix Partner Mitr RHD GAZL (RHD) 9-14T 15-25T Tippers HHP Tipper & Tractor TRUCKS BOSS Boss Cargo Euro V Captain/N HHP Tractor 13T (9-25T) HHP Tipper (9-12T) Tipper Mini Bus 8M 11M 12M City Bus BUS Lynx/Eagle/ Falcon
Slide 80: FY24 & Beyond Products
FY24 & Beyond Products High Significant increase in AL addressable TIV 0 – 3.5T 5 – 7T Mini Bus 7M 0 – 5T 5 – 7T DOST RHD LCV Phoenix Partner Phoenix Mitr RHD GAZL Partner Neo (RHD HS /ESC/ABS &LHD) 9-14T 15-25T Tippers HHP Tipper & Tractor Modular Trucks TRUCKS BOSS Boss Cargo Euro V Captain/N HHP
Slide 81: Geographic Expansion
Geographic Expansion High 28 Countries (FY21) Focus on key markets & revival of network in Africa • SAARC • GCC • East Africa • Rest of Africa (Govt. Projects) 80
Slide 82: Geographic Expansion
Geographic Expansion 28 Countries (FY21) Focus on key markets & revival of network in Africa • SAARC • GCC • East Africa • Rest of Africa (Govt. Projects) 38 Countries (FY23) • West Africa & Southern Africa (Retail) 81
Slide 83: Geographic Expansion
Geographic Expansion Significant increase in AL addressable TIV 28 Countries (FY21) Focus on key markets & revival of network in Africa • SAARC • GCC • East Africa • Rest of Africa (Govt. Projects) 38 Countries (FY23) • West Africa & Southern Africa (Retail) 50 Countries (FY24 & beyond) • South • No
Slide 84: Building Competitive Advantage
Building Competitive Advantage Morocco 9 Ghana Ukraine International Assembly Locations Senegal UAE Bangladesh Nigeria Sri Lanka Kenya All models in SKD Competitive Advantage Cabin CKD Supply Achieve Lowest Duty Ashok Leyland: Technology | Process | Training | 83
Slide 85: Building Competitive Advantage
Building Competitive Advantage Brand Building Best In Class Warranty Investing in Digital Broadcast/Advertising across geographies Jingles Financing Tie up for Project Sale 84
Slide 86: Defence
Defence 85
Slide 87: Defence: Leverage Expanded Product Portfolio
Light • Jeet 4x4 Light • LSV Duty • Garuda 4x4 Tactical • LBPV • MBPV Mk I Armoured • MPV 4x4 • MBPV Mk II Kits vehicles • MMPV 6x6 • Bagh ATT • Stallion 4x4 Medium Duty • Stallion 6x6 DEFENCE: • Oryx 4x4 Leverage Expanded Product Portfolio Medium • Bagh 4x4 • Ambulance 4x2/4x4 Duty • Guru 4x4 • TFF
Slide 88: New Vehicle Platforms & Variants: HMV 10x10 Bridge Launcher
New Vehicle Platforms & Variants (Last 5 Years) HMV 10x10 – 46 m Bridge Launcher 87
Slide 89: New Vehicle Platforms & Variants: HMV 6x6 GTV
New Vehicle Platforms & Variants (Last 5 Years) HMV 6x6 GTV (Gun Tow Vehicle) 88
Slide 90: New Vehicle Platforms & Variants: Light Bullet Proof Vehicle
New Vehicle Platforms & Variants (Last 5 Years) Light Bullet Proof Vehicle 4x4 89
Slide 91: New Vehicle Platforms & Variants: Stallion 6x6 MkV
New Vehicle Platforms & Variants (Last 5 Years) STALLION 6x6 MkV 90
Slide 92: New Vehicle Platforms & Variants: MPV 6x6
New Vehicle Platforms & Variants (Last 5 Years) MPV 6x6 (Mine Protected Vehicle 6x6) 91
Slide 93: New Vehicle Platforms & Variants: HMV 8x8 QRSAM
New Vehicle Platforms & Variants (Last 5 Years) HMV 8x8 – QRSAM (Quick Range Surface to Air Missile) 92
Slide 94: Defence Way Forward
Defence Way Forward % TENDERS VEHICLE PLATFORMS WON Land Mobility : Tender win rate WITH MoD 24 Platforms in Service with > 80% MoD (Last 5 yrs., 2000+ Cr) HMV 10x10, HMV 8x8 , GTV 6x6, GRAD BM-21, Stallion Troop Carrier, 5kL Water Bowser, 4kL ATF, Next 3 Yrs est. 3500+ Cr LRV 4x4, Ambulance 4x2 & 4
Slide 95: Power Solutions Business
Power Solutions Business 94
Slide 96: Power Solutions Business
Power Solutions Business High FY23 Performance – 23k+ Engines sold Segments addressed B2B transformation 11% 3% 1% Power Generation Industrial (76-450HP) B2B (5-650kVA) 34% 52% 58% Engines & Aggregates 55% Retail 45% 41% Agricultural Marine (76-220HP) (56-220HP) FY14 FY19 FY23 Powergen Industrial &
Slide 97: Power Generation
Power Generation High Segments Product range Key differentiators • H & A engines Own engines • Diesel & Gas fuel • Cost effective EATS • 15-250kVA • Compact packing • Inside silencer design • Indigenised 7.5-20kVA • Fully Built Genset option Traded engines • Imported 5-7.5kVA • Strategic HHP partner
Slide 98: Industrial
Industrial 20+ Key Equipment manufactures in AL fold High AL presence Compressor Excavator Front End Loader Paver Finisher Compactor Forklift Mobile Crane Motor Grader Backhoe Loader Concrete Mixer BS CEV* V emission migration to aid new applications & customer-base expansion 97 *Construction Equipm
Slide 99: PSB Market Outlook
PSB Market Outlook Outperforming the market CAGR Powergen Strong foot-print in non-auto Market AL segments Expected ~ 8% CAGR ~ 11% CAGR Growth Growth in HP range to aid new business Fuel agnostic engine platform Industrial Market AL Gas fuel to gain traction Expected ~ 13% CAGR ~ 16% CAGR progressi
Slide 100: Operational Excellence
Operational Excellence Ganesh Mani Chief of Operations 99
Slide 101: Manufacturing facilities across India & Overseas
Manufacturing facilities across India & Overseas Closer to Customer Subsidiary Mfg. Plants Mfg. Plants Alwar Pantnagar Truck & bus Integrated plant VBCL Bus body Current Mfg. Locations Bhandara Going forward Gear train Foundry- 2 Plants Hosur – I, II & III 100K MT/Annum Wide range Ennore Integrated
Slide 102: Capability - Multiple options to Customers
Capability - Multiple options to Customers AVTR – Modular Platform Trucks, 1350+ models produced till date and growing MBP Haulage MBP Tipper MBP Tractor Trailer 18 feet WB: 3100 20 feet WB: 3600 22 feet 24 feet WB: 3900 26 feet WB: 4600 Enhanced Efficiency: 1.5+ lakhs AVTR Trucks on road ▪ Quality:
Slide 103: Capability - Flexible Manufacturing
Capability - Flexible Manufacturing Trucks: 2 to 55Ton & Bus: 24 to 70 seater; ICE + eLCV in the same line AVTR ICV + LCH Passenger Export LCV/eLCV North South Preparing for future – H2 ICE, BEV, Fuel cell and LNG 102
Slide 104: Mantra of Manufacturing – Symphony of People & Machines
Mantra of Manufacturing – Symphony of People & Machines FY28 AI ML FY26 MPAS-II FY24 Shop Engineer → Data Scientists Industry 4.0 enabled automation FY24 - Manufacturing Process Assurance System (MPAS) FY28 - Artificial Intelligence & Machine Learning 103
Slide 105: Resilient and Robust Green Supply Chain
Resilient and Robust Green Supply Chain Quality excellence Improved from 35% to Localization near plants 65% suppliers & import substitution Capacity Digitization alignment & 600+ Trusted Partners Cost competitive Suppliers <50km : 50% Next Gen Technology Co development – H2ICE, ADAS, partnership 43
Slide 106: Journey towards Cost Leadership
Journey towards “Cost Leadership” - Cost reduction @ 360° Mission Material Cost Reduction Drive: VAVE Workshop ▪ Structured cost reduction programs - VAVE ▪ Benchmarking & Clean sheet costing ▪ 2x cost reduction super drive – ICV Buses ▪ Box-1, Box-2 & Box-3 Ideas – Relentless execution Material Cos
Slide 107: Cost Reduction @ 360° - Inplant efforts
Cost Reduction @ 360° - Inplant efforts Twin Loading* @ Paint shop lead to Capacity ↑ 57K → 90K → 175K → 195K (250% ↑) Operations Efficiency % 65 77 85 95 FY21 FY22 FY23 FY24 P Key focus on: ▪ Modularity * Recognized by International Academy for Quality, USA ▪ In-house capability build & automation
Slide 108: Sustainable Manufacturing
Sustainable Manufacturing Focus on “Net Zero” - Mission RE95 – Renewable Energy ▪ 6 Plants to achieve 85% by Oct’23 ▪ 95% by FY26 Sustainable Water & Waste Management ▪ Water positive & Zero liquid discharge ▪ Zero waste to landfill – 100% plants by Q1FY24 107
Slide 109: Continuous contribution towards Nation Building
Continuous contribution towards “Nation Building” Committed to “Make in India” ▪ Export > Import value: 3X surplus ▪ 99% direct parts sourced locally (buy value) ▪ Defence vehicles parts: 75% ↓ in imports Employment opportunity 65,000+ people in Manufacturing & suppliers end (directly & indirectly)
Slide 110: Our plans to realise AL Vision
Our plans to realise AL Vision We commit Flexible, Cost efficient, Tech Savvy & Sustainable Operations 109
Slide 111: Digital Excellence, Subsidiaries & Financials
Digital Excellence, Subsidiaries & Financials Gopal Mahadevan Director & CFO 110
Slide 112: Full Suite Digital Adoption
Full Suite Digital Adoption Customer Process Data & Smart Industry Employee Experience Automation Analytics Products 4.0 Engagement Artificial Digital IoT Blockchain Chatbot Intelligence Twin Edge Analytics Mobility AR, VR Cloud Computing 111
Slide 113: Customer Connect Apps
Customer Connect Apps Telematic suite: App for all Service needs: Parts at your doorstep: Buy, Sell used vehicles: Loyalty program: 1.6 Lacs vehicles on road 1.9 Lakh registered users 1.6 Lakh registered users Tapping 1 Lakh buyer base Top 200 Fleet owners 112
Slide 114: i-Alert connected technology solutions
I-ALERT: A proprietary, connected technology solutions with 100+ connectivity features Fleet Management Vehicle Location Driver Leader Uptime Battery System Services Dashboard Solutions Management • Trip management • Vehicle tracking • Driver coaching • Assistance from • Live charging view • Route m
Slide 115: Value Unlocking
Value Unlocking 114
Slide 116: Subsidiaries
Subsidiaries HINDUJA HINDUJA LEYLAND FINANCE HOUSING FINANCE Engineering Mobility Housing Product Engineering Services NBFC Finance company Digital Technology Services Digital Marketplace e-Mobility Electric Vehicle Freight Aggregation as a Service 115
Slide 117: Hinduja Leyland Finance
Hinduja Leyland Finance Commercial Construction Small CV & Loan against Portfolio Tractor 2 wheelers vehicle equipment 3W property Buyouts 2008 30,239 Cr 2,755 Cr 277 Cr Inception Asset Under FY23 Revenue FY23 PAT Management 5,133 Cr 60.4% INR 60 Expected listing Networth AL Holding AL carrying valu
Slide 118: Hinduja Housing Finance
Hinduja Housing Finance Affordable Low income Loan against Portfolio Housing housing Property Buyout 2015 6,667 Cr 748 Cr 217 Cr Asset Under Inception Management FY23 Revenue FY23 PAT 65% 917 Cr 100% Further value AUM growth unlocking YoY Networth HLFL Holding opportunity 117
Slide 119: Hinduja Tech
Hinduja Tech Electric & Future Embedded & Frugal Powertrains Industry 4.0 Digital Twins Mobility Electronics Engineering 390 Cr 12.7% 1,600+ FY23 FY23 Total Revenue EBITDA Key Clients Headcount Acquired in Nov’22 2x 73.8% Positive upside in HTL Target revenue in UK next 2 years AL Holding future 118
Slide 120: Gro Digital Platforms Ltd.
Gro Digital Platforms Ltd. Freight Exchange Shippers Fleet operations Service Mandi Savings Road-side assistance (Fuel, Toll) 2021 124 Cr 1,40,000+ 649 FY23 Vehicles on Shipper Inception Revenue Platform relationships 2,00,000+ 20,000+ 50% JV Further value unlocking Fuel cards issued Service garage
Slide 121: Switch Mobility/OHM
Switch Mobility/OHM 650+ 70 mn+ 2,000+ 6 400+ buses on road in Global e-Buses 4 New Bus Platforms Green kms. and 2 LCV Platforms India & 250 buses on road globally Order pipeline in London (98% uptime) launched 4 650+ 91.6% Valuation will be Global Employee an upside to AL Manufacturing Strength, 11
Slide 122: Global EV Bus market potential
Global EV Bus market potential INDIA UK E-BUS E-BUS 33,000 2,500 1,600 772 12,000 1,900 FY23 FY26 FY32 FY23 FY26 FY32 EUROPE CAGR E-LCV +19% E-BUS 314,000 19,000 10,000 26,000 3,928 4,000 FY24 FY26 FY32 FY23 FY26 FY32 121 Source: Internal estimates
Slide 123: Advantage Switch
Advantage Switch Comprehensive Proven Reliable Performance & 1 Product Offering & 2 World Class Technology leading to Fast ‘Time to Market’ Competitive TCO Comprehensive Product Portfolio with 4 New 71 Million Green KMs Globally Bus Platforms and 2 LCV Platforms launched 28 Million Green KMs in Indi
Slide 124: Future Products
Future Products E-BUS E-LCV 12m ULE 7M Bus IeV3 New 9M 5M Bus IeV4 123
Slide 125: OHM Bus Projects in India
OHM Bus Projects in India More than 350 e-Buses running across 5 cities and completed 29Mn Kms Patna – 25 Nos 15 nos of 9 m & 10 nos of 12 Chandigarh – 40 Nos m Electric, inducted in 2021. 98 % 3.6 Million KMs Covered 40 nos of 9 m AC electric Buses, inducted in 2020 98 % 4.1 Million KMs Covered 97
Slide 126: Financials
Financials 125
Slide 127: AL Financials – Growth after Covid
AL Financials – Growth after Covid Revenue & EBITDA PAT Rs. Cr. 36,144 1500 1,380 21,688 8.1% 1000 542 15,301 500 4.6% 3.5% 0 -500 -314 FY21 FY22 FY23 FY21 FY22 FY23 Networth Rs. Cr. Net Debt Rs. Cr. 3000 2,607 2500 10000 8,426 8000 6,977 7,337 2000 1500 6000 1000 720 4000 500 2000 0 0 -500 (243) FY
Slide 128: FY23 – Sequential Growth on all fronts
FY23 – Sequential Growth on all fronts CV Volumes Revenue Rs. Cr. 192,205 36,144 128,326 21,688 59,697 11,626 39,651 45,295 47,562 7,223 8,266 9,030 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 EBITDA% 11.0% PAT Rs. Cr. 1,380 8.8% 8.1% 6.5% 751 4.6% 4.4% 542 36
Slide 129: Achieving Mid-Teens EBITDA
Achieving Mid-Teens EBITDA Mid-Teens Targeted EBITDA Productivity and operating leverage Mfg. efficiency and supply chain 1. Driving digital & automation Reduction in raw material cost 1. Benefits of Modularity 8.1% Revenue 2. Industry 4.0 2. Optimisation of overheads enhancement 1. Value engineerin
Slide 130: Capex
Capex 600 Cr – 750 Cr 617 Cr 502 Cr 400 Cr FY21 FY22 FY23 FY24 Est. 129
Slide 131: AL Consolidated Net Debt (31 March 2023)
AL Consolidated Net Debt (31 March 2023) Comfortable Position AL Consolidated Net Debt 25,809 Cr Hinduja Leyland Finance Ltd. 24,668 Cr Others 1,141 Cr 130
Slide 132: Medium term goals
Medium term goals 35% 25% Mid-teens Surplus MHCV LCV Net Operating EBITDA % Market Share Market Share Cash 131
Slide 133: Ashok Leyland – Koi Manzil Door Nahin
‘S) ASHOK LEYLAND Koi Manzil Door Nahin 132