Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (February 2023)
76 slides from Eicher Motors's investor presentation, Feb 14, 2023
Slide 1: Regulation 30 Investor Presentation Intimation Letter
February 14, 2023 Online intimation/submission The Secretary The Secretary BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot No.C/1, Dalal Street G Block, Bandra Kurla Complex, Bandra (E) Mumbai-400 001 Mumbai-400 051 Security Code: 505200 Sym
Slide 2: Investor Presentation February 2023
February 2023 INVESTOR PRESENTATION February 2023 1
Slide 3: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement All statements included or incorporated by reference in this presentation, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and
Slide 4: Contents
Contents 1 EICHER MOTORS LIMITED – OVERVIEW 2 ROYAL ENFIELD 3 VE COMMERCIAL VEHICLES LIMITED 4 SUSTAINABILITY 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 repo
Slide 5: Eicher Motors Limited
Eicher Motors Limited INVESTOR PRESENTATION February 2023 4
Slide 6: Eicher Motors Ltd. (EML) - Group Structure
Eicher Motors Ltd. (EML) - Group Structure Promoter Group Domestic Foreign Institutional Others Institutional Investors Investors 49.21% 29.85% 10.06% 10.88% 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 7: Investor Presentation
INVESTOR PRESENTATION February 2023 6
Slide 8: 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 9: 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 While FY2021-22 volumes were impacted due to COVID-19 and production constraints, our new models including the New Hunter 350 received phenomenal respon
Slide 10: Significant Value Creation for all stakeholders
Significant Value Creation for all stakeholders Market Capitalisation (INR Billions) 146x returns over last 14 years INVESTOR PRESENTATION February 2023 9
Slide 11: Gaining Market Share in the >125cc segment
Gaining Market Share in the >125cc segment Note: Market share data from SIAM INVESTOR PRESENTATION February 2023 10
Slide 12: Global
Global INVESTOR PRESENTATION February 2023 11
Slide 13: 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 14: Brand led Customer Experience
Brand led Customer Experience BRAND PRODUCT NETWORK ▪ Strong brand salience ▪ Strong pipeline of new ▪ Focused approach for coupled with equity as products for next 5 international market a premium and years and beyond for expansion desirable brand the global consumer ▪ Investment in CKD facilities
Slide 15: 1 Million Opportunity
Global mid-size motorcycle market is underserved and is a huge opportunity Americas Market Share APAC Market Share EMEA Market Share Premium 8% 9% 10% ro wth m eG lu Vo 4x 1 Million Opportunity Note: Numbers are as per Royal Enfield's research for its priority international markets INVESTOR PRESENTA
Slide 16: One of the Largest Premium Motorcycle Distribution Network
One of the Largest Premium Motorcycle Distribution Network UK Subsidiary India Tech Center Tech Center Manufacturing APAC Vietnam Cambodia Canada South korea Subsidiary Japan North America Subsidiary Thailand CKD & Thailand Subsidiary Subsidiaries - 05 Brazil CKD Mexico (Dis) & Brazil Subsidiary Nep
Slide 17: Rapidly growing international network
Rapidly growing international network 950+ global touchpoints with 187 Exclusive stores & 760+ MBOs Developed Markets Developing Markets Multi Multi Exclusive Exclusive Brand Brand Store Store Outlet Outlet North APAC 45 103 1 161 Countries with exclusive stores America ■ Australia* – 1 ■ Mongolia –
Slide 18: Share of revenue from international markets has grown 5x over the last 7 years
Share of revenue from international markets has grown 5x over the last 7 years Network Expansion and Touch Points International Business – Stellar Financial Performance over last 7 New Retail formats - Studio stores, Shop-in-shop for apparel, and years motorcycle displays to increase customer reach.
Slide 19: Opportunity – Domestic Market
Opportunity – Domestic Market Rising income India Opportunity The expansion of the middle class and high-income segments 2 Wheeler: 21M Market will reshape future consumption and drive incremental consumption of US$ 4 trillion by 2030 Motorcycles: 13.5 M >125cc: 3.2M Source: World Economic Forum - F
Slide 20: Established Premium Brand in India with expansive distribution network
Established Premium Brand in India with an expansive premium distribution network 1,083 stores and 1,030 studio stores across ~1,750 cities Royal Enfield currently ranks #2 in the FADA Dealer Satisfaction Survey 2022 Store count ▪ Large stores s ▪ Studio stores year North in 7 4x 326 | 337 East 228
Slide 21: Milestone in our EV Journey: Partnership with STARK FUTURE S.L.
Milestone in our EV Journey: Partnership with STARK FUTURE S.L. 1 2 3 4 5 Technical collaboration Deep Invested €50 mn for Common tenets of World class team - agreement: understanding of 11.4%* stake with a long term vision to co-develop - Joint development of EV EVs and connected seat on board of p
Slide 22: 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 23: 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 ▪ Brand’s first ADV Crossover – ▪Purpose-built adventure tourer Adventurer DNA
Slide 24: 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 Interceptor 650 Continental GT 650 Super Meteor 650 ▪The quintessential roadster ▪Authentic café r
Slide 25: All-new Super Meteor
All-new Super Meteor 650 “The Super Meteor 650 is now a benchmark for cruisers in “Yes the wait for the SM 650 was worth it, it has also the Indian market. The Super Meteor 650 is indeed a very worked on a lot of the flaws of the existing 650 Twins, special motorcycle.” as a cruiser it ticks a lot o
Slide 26: Best-in-Class Technology Delivering Superior Quality
Best-in-Class Technology Delivering Superior Quality VEHICLE ASSEMBLY ENGINE ASSEMBLY SURFACE FINISHING ▪ Assembly line flexibility - 256 SKUs ▪ Automation of critical sub assembly ▪ 46 robots deployed to achieve can be produced (including MiY) operations superior paint finish and better ▪ Number of
Slide 27: Best-in-Class Technology Delivering Superior Quality
Best-in-Class Technology Delivering Superior Quality MACHINING FABRICATION AUTO BUFFING 26 ▪ Total no of machining centers across ▪ Improved ride & handling experience ▪ Two stage automated buffing process plants - 340 achieved by 100% robotic welding of enhance the aesthetics of plating ▪ Process c
Slide 28: The quest for enhancing consumer experience
The quest for enhancing consumer experience SALES SERVICE PRODUCT Field Failure – Defects per Hundred Bike 5X R edu DPHB ctio n 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
Slide 29: 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 30: 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 Non Motorcycle Business - F
Slide 31: Product Portfolio – Apparel
Product Portfolio – Apparel 1:3 Scale Model Unveiled the Limited edition 1:3 Classic Collectible at Rider Mania for the public. The masterpiece is handcrafted to precision by using authentic parts that resemble motorcycle components. The collectible got a great response from both the public and medi
Slide 32: Brand
Brand INVESTOR PRESENTATION February 2023 31
Slide 33: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION February 2023 32
Slide 34: Celebration of Community | Motoverse 2022
Celebration of Community | Motoverse 2022 The true highlight being the Themed ‘Into The Motoverse’, unveiling of the New Super After a hiatus of a two years, Rider Mania witnessed multi Meteor 650 in it’s all seven this year’s Rider Mania saw space, multi theme event with striking new colorways 14,0
Slide 35: Engage Physically... Propagate Digitally
Engage Physically... Propagate Digitally Rider Mania I Himalayan Riders Club Of Slideschool One Ride Motoverse Odyssey Europe GT Cup - 2022 The Great Himalayan Himalayan 90° South Astral Ladakh Finale Round Exploration Zanskar The largest, fastest growing Strong global digital On-ground and on-line
Slide 36: Building a strong digital community
Building a strong digital community EICMA 2022 Rider Mania 2022 Royal Enfield x NFT Super Meteor 650 Total Average Total Reach* Engagement Engagement per 122.5 M 6.27 M Brand post 4222 Santanu x Royal UNESCO x Enfield Royal Enfield Total Views Engagement 70 M Rate^ The Great Himalayan Exploration 5.1%
Slide 37: Hybrid Engagement Leading to Strong Consumer Equity
Hybrid Engagement Leading to Strong Consumer Equity #1 82% Consideration #1 48% Top of Mind Awareness 22 percentage points ahead of our closest competitor 28 percentage points *Internal Kantar report on Brand Health ahead of our closest Track - OND’2022 scores competitor ▪ Among the host of brand he
Slide 38: Business Performance
Business Performance INVESTOR PRESENTATION February 2023 37
Slide 39: 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 40: 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 Net Cash 39 * Market Share in above 125cc segment So
Slide 41: Multiple Management Actions Taken to Optimize Cost Base
Multiple Management Actions Taken to Optimize Cost Base Technical Levers Commercial Levers ● Value analysis & Value Engineering ● Alternate vendor sourcing (VAVE) & Supplier VAVE Program ● Make / Buy Restructuring ● 75% reduction in Platinum Group Metals ● Localisation of Imported parts (PGM) since
Slide 42: Awards and Achievements
Awards and Achievements All-New Classic CLASSIC 350 Hunter 350 Meteor 350 350 INDIAN BEST OF 2022 BEST OF 2021 VIEWER’S CHOICE RETRO BIKE OF COOLEST MOTORCYCLE MOTORCYCLE OF BIKE OF THE YEAR THE YEAR OF THE YEAR THE YEAR 2023 RETRO BIKE MODERN CLASSIC BEST MODERN BEST ENTRY LEVEL 2 WHEELER OF BIKE O
Slide 43: RE in Summary
RE in Summary REBALANCE : A LARGER PURPOSE FOR RE GROWTH FOCUS SUSTAINABILITY ICE AND EV BRAND LED CX Balance - Profit & Balance - Social & Balance - EV as game Brand led Customer Profitability Commercial Objectives changer along with ICE Experience versus transactional focus CREATE AGILE, RESILIENT
Slide 44: Investor Presentation
INVESTOR PRESENTATION February 2023 43
Slide 45: What drives us….Vision & Values
What drives us….Vision & Values To be recognised as the Respect industry leader driving Fair and Ethical modernization in commercial Excellence transportation in India Customer Centric and the developing world Passion INVESTOR PRESENTATION February 2023 44
Slide 46: 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 47: Q3 FY23 Highlights
Q3 FY 23 Highlights Highest ever Eicher Highest ever Showcased Highest Q3 sales at and Volvo HD trucks quarterly parts future-ready mobility 18,162 units sales in a quarter of business of INR 295 solutions aligned Released first ESG ( FY19 Q3 -16,936 5,241 units Crs registering more with vision of S
Slide 48: 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 30.1% 7.6% 25.3% 1.3% FY 2009 9MFY23 FY 2009 9MFY23 Buses Volvo Trucks India* 22.5% 95% 5.3% 72.6% FY 2009 9MFY23 FY 2009 9MFY23 *Market share in high end premium segment Source - SIAM INVE
Slide 49: 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 50: 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 51: VECV @ Auto Expo 2023 – Driving Smart Sustainability
VECV @ Auto Expo 2023 – Driving Smart Sustainability 16,000 sq ft. Distinct Eicher & Volvo brand areas ● Presented the strength of VECV Joint Venture through a combined yet brand distinct exhibit of Volvo & Eicher range ● Showcased future readiness through sustainable technology, products& innovativ
Slide 52: VECV@Auto Expo 2023 – Future Ready Product and Services Showcased
VECV@Auto Expo 2023 – Future Read Product and Services Showcased Presented Eicher & Volvo future readiness Volvo 9600 Volvo FM420 15m Coach 4x2 LNG Tractor Eicher Pro 8055 Tractor Eicher Pro 2049 Truck Eicher Intercity Electric LNG + CNG Hybrid Electric Mini Truck Coach 13.5m Coach Eicher Pro 3015 E
Slide 53: Introducing new products to enhance productivity of our customers
Introducing new products to enhance productivity of our customers EICHER PRO 2049 12ft EICHER PRO 3018 EICHER PRO 6019XPT Eicher Skyline Pro 3010 L CNG AC Premium School Bus Best-in-class cargo space in Sub Industry’s first 12.2 ton Built on the philosophy of “DO Premium range of Eicher 5 ton catego
Slide 54: 1st ESG Report published
1st ESG Report published INVESTOR PRESENTATION February 2023 53
Slide 55: #1 in Dealer Satisfaction for 2nd Year in a Row
#1 in Dealer Satisfaction for 2nd Year in a Row – Strengthening Customer Experience #1 in Dealer Satisfaction* 700+ network count *Federation of Automobile Dealers Associations (FADA) Survey 2022 INVESTOR PRESENTATION February 2023 54
Slide 56: Leading in Digitization…100% Connected Truck Fleet
Leading in Digitization…100% Connected Truck Fleet Digital Customer Digital Business Digital Enterprise INVESTOR PRESENTATION February 2023 55
Slide 57: Our Journey… Performing and Transforming
Our Journey… Performing and Transforming Profitable Sustainable Products & Operations Future Ready INVESTOR PRESENTATION February 2023
Slide 58: Sustainability
SUSTAINABILITY INVESTOR PRESENTATION February 2023 57
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: Green Business Operations
Green Business Operations Energy and Emissions 22% Reduction in GHG Emissions Intensity (tCO2e/Motorcycle) Minimise emission in raw material extraction and Zero production waste to Material Water and Effluent landfill Comprising over 90% of recycled EML aluminum and steel, Royal Enfield Minimising R
Slide 61: Among the Industry Leaders in Sustainability
Among the Industry Leaders in Sustainability ESG Score 62.0 Eicher Motors is listed in the DJSI Emerging Markets Index for the second year in a row, and has maintained its position among the top 3 automotive sector leaders in India and top 10 globally. ESG Reporting Eicher Motors has been reporting
Slide 62: ESG: Performance Overview
ESG : Performance Overview Eicher Motors ranks among the sector leaders in major ESG ratings Morgan Stanley Capital International (MSCI) Sustainalytics Morgan Stanley Capital Sustainalytics International (MSCI) #8 out of 89 in 8 out of 89 in 13.4 AmongAmong the topthe 10top auto A the Automotive com
Slide 63: Passion with Responsibility
Passion with Responsibility India USA Europe Committed to safeguard the Intangible Cultural Committed to support the affected communities Heritage of India during the pandemic ■ In a first of its kind endeavour, UNESCO and Royal Enfield have come ■ India: INR. 60 Crs were spent during COVID to suppo
Slide 64: EML - Inclusive Stakeholder Management Policies
EML - Inclusive Stakeholder Management Policies With global operational and retail footprints and social initiatives that span the length and breadth of India and International markets, EML has a diverse stakeholder base Gunning Improving Improving for Growth Returns Value Creation ▪ Rise in utiliza
Slide 65: EML Board: Leaders with proven track record
EML Board: Leaders with proven track record S Sandilya Siddhartha Lal B. Govindarajan Chairman, EML Managing Director and CEO, CEO - Royal Enfield, Whole EML Time Director Vinod K. Aggarwal Inder Mohan Singh Manvi Sinha Non-Executive Director Independent Director Independent Director INVESTOR PRESEN
Slide 66: Royal Enfield managed by seasoned professionals
Royal Enfield managed by seasoned professionals Siddhartha Lal B. Govindarajan Managing Director and CEO, EML CEO – Royal Enfield Mark Wells Chief of Design Mohit Dhar Jayal Yadvinder S. Guleria Simon Warburton Chief Brand Officer Chief Commercial Officer Chief Program Manager INVESTOR PRESENTATION
Slide 67: Royal Enfield managed by seasoned professionals
Royal Enfield managed by seasoned professionals Sudhakar Bhagavatula Vidhya Srinivasan Chief Information Officer Chief Financial Officer Rajeev Sharma Chief Human Resource Officer Paolo Brovedani Umesh Krishnappa Chief of Product Development Chief Technology Officer for EV INVESTOR PRESENTATION Febr
Slide 68: 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 69: VECV Management … Deep experience in Indian & Global CV industry
VECV Management … Deep experience in Indian & Global CV industry INVESTOR PRESENTATION February 2023 68
Slide 70: 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 71: Financials
Financials INVESTOR PRESENTATION February 2023 70
Slide 72: 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 9MFY23 Sales Volume: Two Wheelers (Nos.) 666,135 820,121 822,724 697,582 609,403 595,474 609,381 Total revenue from operations (net of excise) 7,033 8,965
Slide 73: Balance Sheet (Consolidated)
Balance Sheet Profit and Loss(Consolidated) Statement (Consolidated) (In INR Cr.) Particulars FY17 FY18 FY19 FY20 FY21 FY22 H1FY23 Net Fixed Assets (including CWIP and Pre-operative 1,247 1,835 2, 324 2,690 2,748 2,929 2,983 Expenditure) Investments 4,987 5,581 4,923 5,749 3,902 7,721 8,605 Other No
Slide 74: 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 H1FY23 Profit before tax and after share of profit of Joint 2,433 3,116 3,297 2,355 1,798 2,203 1,594 venture Operating profit before changes in working capital 2,19
Slide 75: 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 76: Thank You
Thank You Get Social Royal Enfield Royal Enfield Royal Enfield INVESTOR PRESENTATION February 2023
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