Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (July 2019)
67 slides from Eicher Motors's investor presentation, Jul 31, 2019
Slide 1: Regulation 30 disclosure cover letter
July 31, 2019 Online intimation/submission The Secretary The Secretary BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/1, G Block Mumbai-400 001 Bandra Kurla Complex, Bandra (E) Security Code: 505200 Mumbai-400 051 Symbol: E
Slide 2: Investor Presentation July 2019
Investor Presentation a July 2019
Slide 3: Contents
Contents EICHER MOTORS LIMITED - OVERVIEW ROYAL ENFIELD VE COMMERCIAL VEHICLES FINANCIALS APPENDIX 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 of the Compan
Slide 4: Eicher Motors Limited - Overview
EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION July 2019 3
Slide 5: Key Milestones
Key Milestones India’s first Enters heavy Forms JV* with AB Volvo tractor rolls out Royal Enfield duty of Sweden; transfers Shutdown of of Eicher factory motorcycles trucks commercial vehicle operations of in Faridabad acquired segment business to the JV* Eicher Polaris 1959 1984 1991 1993 2002 2005
Slide 6: Shareholding Pattern (30th June 2019)
Shareholding Pattern (30th June 2019) Foreign Institutional Domestic Investors Institutional Promoter Group Investors Others 49.31% 33.15% 4.70% 12.84% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eicher Motors Limited (EML) Volvo Group Business Unit 45.6 54.4 VE Commercial Vehicles (VECV) Royal Enfi
Slide 7: Eicher Management Philosophy
Eicher Management Philosophy Break-through emerging Established Corporate Strong Values market business model Governance An evolved business model Fully empowered Corporate conduct rooted with 50+ years of management teams in highest standards of experience in automotive ethics, integrity & space in
Slide 8: Board
Board Eicher Motors Limited VE Commercial Vehicles S Sandilya Hakan Karlsson Non-executive Chairman Chairman Siddhartha Lal Siddhartha Lal Managing Director Director Vinod K. Dasari Vinod Aggarwal Whole Time Director & CEO - Royal Enfield Managing Director & CEO Vinod Aggarwal Jacques Michel Non-Exe
Slide 9: Business Highlights – FY 2018-19
Business Highlights – FY 2018-19^ 0 823,828 >90% EML continues to be Motorcycles sold in FY19, Royal Enfield’s market Debt free company 7x in last 7 years share in the mid-size motorcycles* segment 30.1% 29.4% Royal Enfield EBITDA VE Commercial Vehicles margin in FY19, benchmark market share in dome
Slide 10: Royal Enfield
ROYAL ENFIELD INVESTOR PRESENTATION July 2019 9
Slide 11: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION July 2019 10
Slide 12: Product Portfolio – Motorcycles
Product Portfolio – Motorcycles Royal Enfield range of motorcycles is able to address a unique mix of appeals – from its traditional customer base to urban, aspiration-driven youth Bullet Classic Thunderbird Himalayan Continental GT Interceptor Longest production Sense of Definitive highway Purpose-
Slide 13: The Twins are Here – Interceptor 650 and Continental GT 650
The Twins are Here – Heritage Inspired Machines that carry the Royal Enfield Legacy and Character into the 21st Century In September 2018, 120 journalists from 13 countries participated in the global media ride of the Interceptor 650 and the Continental GT 650 at Santa Cruz, California In November 2
Slide 14: Royal Enfield aims to Lead and Expand the Mid-Weight Segment Globally
Royal Enfield aims to Lead and Expand the Mid-Weight Motorcycle Segment Globally Parallel Twin Cylinder Engine Interceptor 650 & Continental GT 650 New platform is a single overhead cam, 8 valve, Attractive Proposition air/oil-cooled, 648cc parallel twin, producing 47bhp and 52Nm Compelling upgrad
Slide 15: Royal Enfield - Bullet Trials Works Replica
Royal Enfield - Bullet Trials Works Replica The Bullet Trials Works Replica Inspired by Royal Enfield’s victories at the launched in 350cc and 500cc variants International Six Days Trials Championships A tribute to Royal Enfield factory rider, the legendary Johnny Brittain Commemorates 87 years of t
Slide 16: Royal Enfield - Thunderbird X
Royal Enfield - Thunderbird X A new custom-inspired motorcycle for urban explorers Designed to resonate with the new-age The Thunderbird X sports alloy wheels, tubeless motorcyclists’ sense of self-expression and tyres, ‘gunslinger’ styled seat and the new grab- individualism rail and shortened rear
Slide 17: Royal Enfield - The Himalayan Sleet
Royal Enfield - The Himalayan Sleet Inspired by the mountains Built to inspire the explorer within New colourway INVESTOR PRESENTATION July 2019 16
Slide 18: Classic Signals - An ode to Enfields in Service
Classic Signals 350 - An ode to Enfields in Service & those who ride them Tribute to Royal Enfield’s 65 years of association with the Indian armed forces Introducing Dual Channel Anti-lock Braking System (ABS) for better braking efficiency Available in two colours – “Airborne Blue” and “Stormrider S
Slide 19: Product Portfolio – Apparel Business
Product Portfolio – Apparel Business Extension of One’s Personality Make Your Own Royal Enfield Apparels In an effort to make the brand aim to become an more accessible and personal, extension of the owners’ Royal Enfield Apparel introduced a personality. Inspired by feature “MAKE YOUR OWN”, which t
Slide 20: Launch of Classic in 2009 was an Inflection Point
Launch of “Classic” in 2009 was an Inflection Point Launch of new “Thunderbird” and Launch of Launch of “apparel & accessories” “Continental GT” “Himalayan” Transition of all models 900,000 70% 820,492 823,828 80% to “UCE” 68% 800,000 70% 700,000 57% 666,493 Launch of 52% 60% 600,000 508,099 “Classi
Slide 21: Financial Highlights – Eicher Motors Ltd. (Standalone)
Financial Highlights – Eicher Motors Ltd. (Standalone) All figures are for Eicher Motors Limited Standalone (in Rs. cr unless specified) Total Revenue Sales Volume (in Nos) EBITDA & Margins Total revenue from operations (net of excise duty) 31.3% 31.9% 32.3% 35% 30.1% 25.9% 30% 25% 20% 15% 225,361 1
Slide 22: Our Footprint
Our Footprint UK USA Austria Milwaukee France Spain Portugal Mexico UAE South Korea Thailand Vietnam Colombia Philippines Ecuador Malaysia Royal Enfield Exclusive Indonesia Stores (Overseas) - 48 Argentina – 2 | Australia – 1 | Austria – 1 | Brazil Brazil – 3 | Colombia – 8 | Ecuador – 3 | Sao Paulo
Slide 23: Industry Overview
Industry Overview Motorcycle Volumes (India) (in mn) India - largest motorcycle market in world 12.6 13.6 10.7 10.7 11.1 FY15 FY16 FY17 FY18 FY19 Growth rate of various motorcycle segments 24.9% 20.6% 15.1% 9.5% 7.6% 8.3% 6.6% Indicates growing premiumisation of motorcycle market -0.8% -1.8% -2.1% F
Slide 24: Opportunity – Domestic Market
Opportunity – Domestic Market India to become a US$4.72 trillion (current market India’s demographic profile (year-2015) price) economy by 2024 1% US$ 4.72 Tn. 9% Age Group 28% US$ 1.99 Tn. 7.5% 0-14 US$ 2.71 Tn. to 15-59 7.3% 7.7% 60+ 7.1% 80+ 2013 - 15 2016 - 18 2020 - 24f 62% Indian Economy: A sh
Slide 25: Opportunity – International Business
Opportunity – International Business The Oddity of the Motorcycle Industry Globally… is an opportunity Most Industries Developing CAGR : 2012-18 Motorcycles > 750cc Markets -2% Industry Premium 250-750cc 3% -2% Mid Only Mid-sized motorcycle segment <250cc (250-750cc) has grown in the recent Mass Com
Slide 26: Preparing for Future Growth
Preparing for Future Growth Setting up Phase-2 of plant at Vallam Vadagal near Chennai Capacity Production ramup of the new Twin motorcycles “Interceptor 650 and Continental GT 650” underway Technology centres in Chennai and UK Product Preparedness for BS VI transition on track Development Five year
Slide 27: UK Technology Centre
UK Technology Centre UK Tech Centre at Bruntingthorpe to be a hub for the A team of over 120 employees comprising of engineers and product development and research activities, driving the designers with a wide range of international experience in all mid-range motorcycle platforms aspects of motorcy
Slide 28: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives Royal Enfield Rider Mania 2018 Rider Mania, Royal Enfield’s most definitive motorcycle festival was held from 16th to 18th November 2018. Rider Mania is the largest gathering of Royal Enfield enthusiasts in the world. This year Rider Mania saw around 20 new
Slide 29: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives One Ride 2019 Himalayan Odyssey July 2019 One Ride is a marquee event from Royal Enfield to encourage The 16th edition of Royal Enfield ‘Himalayan Odyssey’ saw 60 its enthusiasts from around the world to ride as one motorcyclists ride for 15 days over 2,200
Slide 30: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives Wheels & Waves 2019 Reunion South March 2019 Wheels and Waves is one of Europe’s iconic motorcycling Reunion South saw a gathering of the Royal Enfield riders and festivals, centred on classic as well as custom motorcycles enthusiasts from the southern state
Slide 31: Awards
Awards The recently launched Royal Enfield Interceptor 650 won the Indian Motorcycle of The Year ("IMOTY") 2019 award - the most prestigious award of the Indian 2-Wheeler Industry The Interceptor 650 won the Best Modern Classic Middle-Weight award at Thailand Bike of the Year 2019, a first for Royal
Slide 32: Royal Enfield Vintage – Opportunity in Pre-owned Motorcycle Segment
Royal Enfield Vintage – Opportunity in Pre-owned Motorcycle Segment Vintage Store opened in Chennai, Bangalore, Delhi, Mumbai, Patna, Kanpur, Indore, Patiala • Pre-owned, refurbished and restored motorcycles - a first-of-its-kind in two-wheeler industry • Accessible, hassle-free, transparent sale an
Slide 33: Royal Enfield Garage Café, Goa
Royal Enfield Garage Café, Goa A celebration of exploration - through motorcycling, food, entertainment and personal expression Royal Enfield has set up its first Royal Enfield Garage Cafe inArpora - Baga, Goa. The cafe is an inclusive and engaging space that reflects Royal Enfield motorcycling way
Slide 34: Royal Enfield Garage Café, Goa
Royal Enfield Garage Café, Goa A unique space that embodies the pure motorcycling culture and lifestyle INVESTOR PRESENTATION July 2019 33
Slide 35: Royal Enfield in Argentina, its Third Country in Latin America
Royal Enfield in Argentina, its Third Country in Latin America Flagship store in the heart of Buenos Aires INVESTOR PRESENTATION July 2019 34
Slide 36: Royal Enfield Opens Store in Chiang Mai, Thailand
Royal Enfield Opens Store in Chiang Mai, Thailand Royal Enfield opens 3rd store in Thailand and 1st outside of Bangkok INVESTOR PRESENTATION July 2019 35
Slide 37: Royal Enfield enters Seoul, South Korea
Royal Enfield enters Seoul, South Korea Flagship store in Seoul INVESTOR PRESENTATION July 2019 36
Slide 38: Royal Enfield’s Store in Saket, New Delhi
Royal Enfield’s Store in Saket, New Delhi A fusion between a living room and a The Saket store is our finest garage, the store stands testament to the example of Pure Motorcycling yet union of man, machine and terrain INVESTOR PRESENTATION July 2019 37
Slide 39: VE Commercial Vehicles
VE COMMERCIAL VEHICLES INVESTOR PRESENTATION July 2019 38
Slide 40: VECV was Established in 2008 with Strong Parentage
VECV was Established in 2008 with Strong Parentage EICHER VOLVO STRENGTHS STRENGTHS Strong player in LMD Global segment VECV expertise Specialist skills and vision Leadership in product technology experience in developing “To be recognised as low cost, better the industry leader Good infrastructure
Slide 41: Milestones
Milestones AUGUST 2008: Signing of definitive 2009: Inauguration of the new gear 2009: Launch of CSI-1 quality agreements component plant at Dewas improvement initiative Jul-Aug 2008: Commencement of JV 2012: CED paint shop inauguration 2010: Launch of VE-series of Eicher 2012: VEPDC inauguration HD
Slide 42: Milestones
Milestones 2013: EEC gear plant, Dewas Unit II 2014: Volvo Trucks launch of new range 2014: Inauguration of Eicher retail inauguration of products comprising FH, FM and FMX excellence center (VECV academy) 2016: Launch of Eicher 2015: Inauguration of 2017: Inauguration of Transmission 2017: Pro 5000
Slide 43: Volumes
Volumes Eicher Light to Medium Eicher Heavy Duty Total CV* Volumes(in nos) Duty Trucks (3.5-15 tonne) (in nos) Trucks (16 tonne +) (in nos) 16,327 2,819 7,670 13,331 6,911 2,267 11,109 12,372 13,281 58,604 65,932 72,969 26,027 33,010 37,706 FY17 FY18 FY19 Q1FY19 Q1FY20 FY17 FY18 FY19 Q1FY19 Q1FY20 F
Slide 44: Market Share
Market Share Eicher Heavy Duty Trucks Eicher Light and Medium Duty Trucks (excluding exports) In % (excluding exports) In % 31.5 31.3 4.9 29.4 29.3 4.6 4.5 4.5 25.9 4.1 FY17 FY18 FY19 Q1FY19 Q1FY20 FY17 FY18 FY19 Q1FY19 Q1FY20 Buses (excluding exports) In % VECV market share (including exports) In %
Slide 45: Financial Highlights – VE Commercial Vehicles
Financial Highlights – VE Commercial Vehicles All figures are for VE Commercial Vehicles (in Rs. Crore unless specified) Total Revenue* Total revenue from operations (net of excise duty) 2,609 2,255 8,553 10,049 11,600 FY17 FY18 FY19 Q1FY19 Q1FY20 EBITDA & Margin* Profit After Tax 1200 20% 18% 1000
Slide 46: India Facilities – Manufacturing and Operations
India Facilities – Manufacturing and Operations Baggad *Abbreviation: EEC - Eicher Engineering Components Number of employees(VE Commercial Vehicle) – 5,009* VEPT - VE Power Train SEZ - Special Economic Zone (*permanent) (as of June 2019) HQ - Head Quarter INVESTOR PRESENTATION July 2019 45
Slide 47: VECV Trucks and Buses Distribution network
VECV Trucks and Buses Distribution network Eicher Truck & Bus Network Volvo Truck & Bus Network Dealer network 290 nos. including 15 COCO* outlets Hub and spoke network model 23 distributors, 98 Eicher Genuine Parts Shoppe and 2,500+ multi-brand Sets benchmarks in the industry for vehicle uptime par
Slide 48: VECV Edge: Opportunities / Discontinuities
VECV Edge Opportunities / Discontinuities VECV EDGE Investing early in fully-built vehicles & Stricter emission & Safety emission norms Building products apt for right-load & Stronger regulations for overloading mild over-load conditions Better infrastructure leading to higher Building more reliable
Slide 49: VECV Edge: Opportunities / Discontinuities
VECV Edge Opportunities / Discontinuities VECV EDGE Availability of trained drivers Driver training and regional academy Developing products aligned with Higher dependence on logistics evolving customer needs – Pro series Increased pressure on initial acquisition Institutionalization of cost reducti
Slide 50: Eicher LMD Trucks: A Significant Player
Eicher LMD Trucks: A Significant Player Eicher Pro 1000 series (3.5-15 Ton GVW) Volumes (in nos) 7,670 6,911 Eicher Pro 3000 series (12-15 Ton GVW) Q1 FY19 Q1 FY20 INVESTOR PRESENTATION July 2019 49
Slide 51: Eicher LMD Trucks: Launch of Pro 2000 Series
Eicher LMD Trucks: Launch of Pro 2000 Series Unveiled India’s first BS VI Designed to deliver significantly higher profitability, compliant CV range enhanced reliability, safety, comfort and efficiency Commercial launch of existing BS IV range in June 2019 Introduction of many industry-first feature
Slide 52: Eicher HD Trucks: To Leverage Full Potential
Eicher HD Trucks: To Leverage Full Potential….. Volumes (in nos) Pro 8000 series 2,819 2,267 Q1 FY19 Q1 FY20 Pro 6000 series Steadily growing market share The ‘Pro’ series is gaining more traction with increased interest in technologically advanced trucks. The Value Trucks are witnessing good accept
Slide 53: Volvo Trucks: Market leader in Premium Truck segment
Volvo Trucks: Market leader in Premium Truck segment Volumes (in nos) Leadership in niche segments 198 197 Q1 FY19 Q1 FY20 FMX 10X4 (55 Ton dump trucks) FH 520 is the flagship model of the Volvo truck range Mining tipper Tunnel tipper Over dimensional cargo Source - SIAM INVESTOR PRESENTATION July 2
Slide 54: Eicher Buses: Steady Market Share in a Challenging Environment
Eicher Buses: Steady Market Share in a Challenging Environment Volumes (in nos) 3,665 3,067 Q1 FY19 Q1 FY20 Electric Pro E Source - SIAM INVESTOR PRESENTATION July 2019 53
Slide 55: Tapping Global Potential
Tapping Global Potential Exports (in nos) Over 10 new products/variants introduced to gain access across new segments in target markets Continued growth for spare parts business during last 6 years “Aftermarket Uptime Promises” rolled out and the design of the same is being deployed across markets f
Slide 56: World Class Manufacturing set up
World Class Manufacturing set up... Capacity to produce up to 90,000 trucks from single plant; new plant establishment under progress to take capacity to 130,000 per annum Highest ever production of 73,619 vehicles in FY19, a growth of 12.7% over FY18 Highly flexible vehicle assembly lines with righ
Slide 57: VE Powertrain
VE Powertrain First engine plant in India producing Euro-6 compliant base engine Exclusive manufacturing hub for medium duty engine requirements of Volvo Group Current capacity of 50,000 engines, scalable up to 100,000 engines Best executed project with Volvo Group technology with frugal approach Th
Slide 58: New Plant in Bhopal, Madhya Pradesh
New Plant in Bhopal, Madhya Pradesh Current Status ETB plant capacity 90,000, deliverable 80,000 with seasonal variations, running at full utilization Proposed Project commenced in October 2018 with proposed capacity of 40,000 per annum Overall project on track; start of production planned in April
Slide 59: Other VECV Business Areas
Other VECV Business Areas Eicher Engineering Components (EEC) Strategic supplier of drive line components and aggregates for VECV, The Volvo group, exports and strategic domestic OEM customers Production facilities at: Thane, Dewas and SEZ, Pithampur Annual turnover of Rs.1,008 Crores in FY19 INVEST
Slide 60: Other VECV Business Areas
Other VECV Business Areas Eicher Non - Automotive Engines Presence in 10 countries, Genset Assembly in UAE & South Africa, pan India presence in Genset segment Reputed as most reliable and lowest operating cost engines, established in material handling segment Engines and drivelines for power, indus
Slide 61: Financials
FINANCIALS INVESTOR PRESENTATION July 2019 60
Slide 62: Quarterly Financial Highlights (Standalone)
Quarterly Financial Highlights (Standalone) Eicher Motors – Standalone* performance in last 5 years… (in Rs. Cr) 900 35.0% 31.8% 31.4% 31.4% 31.9% 31.7% 32.3% 32.3% 30.8% 31.3% 30.6% 800 29.6% 29.5% 28.6% 30.0% 27.7% 27.8% 700 26.1% 26.4% 25.9% 24.9% 25.0% 23.6% 25.0% 600 500 20.0% 400 15.0% 300 10.
Slide 63: Thank You
Thank You Get Social : Royal Enfield Royal Enfield INVESTOR PRESENTATION VE Commercial Vehicles July 2019
Slide 64: Appendix
APPENDIX INVESTOR PRESENTATION July 2019 63
Slide 65: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (In Rs. Cr.) Particulars Mar’17 Mar’18 Mar’19 Net Fixed Assets (including CWIP and Pre-operative Expenditure) 1,247 1,835 2,324 Investments 4,987 5,581 4,923 Other Non Current Assets 260 186 180 Current Assets Inventories 336 395 633 Debtors 50 68 90 Cash and Bank Balanc
Slide 66: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) (In Rs. Cr.) Profit & Loss Account FY17 FY18 FY19 Sales Volume: Two Wheelers (Nos.) 666,135 820,121 822,724 Total revenue from operations (net of excise) 7,033 8,965 9,797 Manufacturing and other expenses 4,859 6,157 6,894 Earnings before interest, depreciation
Slide 67: Glossary
Glossary • 7M – 7 months starting April to October • JV – Joint Venture • 9M – 9 Months starting April to December • LCV – Light Commercial Vehicles • 10M – 10 Months starting April to January • LMD – Light to Medium Duty • 15M – 15 months ended on 31st March 2016 • M&HCV – Medium and Heavy Commerci