Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Q1 FY2024-25 Earnings Presentation
69 slides from Eicher Motors's earnings presentation, Aug 8, 2024
Slide 1: Exchange filing cover letter
August 8, 2024 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 Symbol
Slide 2: Eicher Motors Ltd Q1 FY 2024-25 Investor Presentation
EICHER MOTORS LTD Q1 FY 2024-25 INVESTOR PRESENTATION August, 2024
Slide 3: Safe Harbour Statement
SAFE HARBOUR STATEMENT All statements included or incorporated by reference in this presentation, other than statements or characterisations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and projections about ou
Slide 4: Contents
CONTENTS 1. EML Overview 2. Royal Enfield ● Company Overview ● India Business ● International Business ● Non-MC Business ● Operations Overview ● Brand ● Sustainability 3. JV UPDATE - VECV 4. Financial Review INVESTOR PRESENTATION August 2024
Slide 5: Group Structure - Eicher Motors Ltd
GROUP STRUCTURE - EICHER MOTORS LTD Foreign Institutional Domestic Promoter Group Investors Institutional Investors Others 49.1% 29.6% 12.3% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eicher Motors Limited (EML) Joint Venture Business Unit 45.6% 54.4% Royal Enfield (RE) RENA (Royal Royal Enfield R
Slide 6: EML Board
EML BOARD Leaders with a proven track record S Sandilya Siddhartha Lal B. Govindarajan Vinod K. Aggarwal Chairman, EML Managing Director and CEO, EML CEO - Royal Enfield, Whole Time Non-Executive Director Director Inder Mohan Singh Manvi Sinha S Madhavan Tejpreet Chopra Independent Director Independe
Slide 7: Royal Enfield
ROYAL ENFIELD INVESTOR PRESENTATION 6 August 2024
Slide 8: Our Purpose
OUR PURPOSE Royal Enfield’s philosophy of Pure Motorcycling has always been about a constant search for balance between people, machine and terrain. Today, in a world out of sync with itself, we must extend this quest to our business – so that we can restore equilibrium between commercial objectives,
Slide 9: Rebalance: Long Term Strategic Vision
REBALANCE: LONG TERM STRATEGIC VISION 1. ICE and EV 3. Brand Led CX Brand led Customer Experience Balance EV as a game changer versus transactional focus along with ICE products 2. Growth Focus 4. Sustainability Balance Social & Commercial Balance Profit & Profitability objectives CREATE AN AGILE, RES
Slide 10: Strong Management Team
STRONG MANAGEMENT TEAM Siddhartha Lal B. Govindarajan Mark Wells Mohit Dhar Jayal Simon Warburton Mahesh Tripathi Managing Director & CEO, EML CEO – Royal Enfield Chief of Design Chief Brand Officer Chief Program Manager Chief Operations Officer Yadvinder S. Guleria Vidhya Srinivasan Rajeev Sharma Sudh
Slide 11: Expansive Product Portfolio
EXPANSIVE PRODUCT PORTFOLIO Engine Platform Heritage Cruiser Roadster Scrambler Adventure Retro Sport P Platform 650cc | Twin cylinder Super Meteor 650 Interceptor INT650 Continental GT650 Air-oil cooled 47 PS | 52.4 N-m Shotgun 650 K (Sherpa) Platform 450cc | Single cylinder Liquid cooled 39.4 PS |
Slide 12: India Business
INDIA BUSINESS
Slide 13: Share of Mid-Size in Domestic Motorcycle Market Growing
SHARE OF MID-SIZE (250-750cc) IN THE DOMESTIC MOTORCYCLE MARKET GROWING INVESTOR PRESENTATION 12 August 2024
Slide 14: Motorcycle Volumes
LAUNCH OF CLASSIC IN 2009 WAS AN INFLECTION POINT Himalayan 450 | Shotgun 650 Transition of all 350 models to J Platform Launch of the twins Hunter 350 INT 650 / GT 650 Super Meteor 650 Launch of 411 New Classic 350 Himalayan OG Scram 411 Continental GT 535 Meteor 350 Motorcycle Volumes (‘000) Launc
Slide 15: Gaining Market Share in Domestic Motorcycles
GAINING MARKET SHARE IN DOMESTIC MOTORCYCLES INVESTOR PRESENTATION 14 August 2024
Slide 16: Expansive Premium Distribution Network in India
EXPANSIVE PREMIUM DISTRIBUTION NETWORK IN INDIA WITH MORE THAN 2,000 STORES Royal Enfield currently ranks #2 in the FADA Dealer Satisfaction Survey 2023 INVESTOR PRESENTATION 15 August 2024
Slide 17: International Business
INTERNATIONAL BUSINESS
Slide 18: Royal Enfield's Global Footprint
ROYAL ENFIELD’s GLOBAL FOOTPRINT Europe Subsidiary Canada Subsidiary UK Subsidiary North America Tech Center Subsidiary Nepal (CKD) (Dis) Brazil CKD Thailand CKD & Brazil Subsidiary & Thailand Subsidiary Colombia (CKD) India Tech Center Subsidiaries - 06 Manufacturing CKD units - 05 Tech Centers - 0
Slide 19: Global Mid-Size Market Is Underserved
GLOBAL MID-SIZE MARKET IS UNDERSERVED & IS A HUGE OPPORTUNITY Americas Market Share^ APAC Market Share EMEA Market Share 8% 9% 9% ● Launched of Tours & Rentals, Riders Club of Europe Membership approaches 30,000. ● RE is the top 4 mid-weight motorcycle brands in many countries around the world. ^Refl
Slide 20: Rapidly Growing International Network
RAPIDLY GROWING INTERNATIONAL NETWORK 1,085+ premium global touchpoints Subsidiary - USA, Brazil Technology Centers – UK Subsidiary : Thailand Assembly Unit – Argentina, Colombia, Brazil Subsidiary – UK Assembly Unit – Thailand Exclusive Multi Brand Exclusive Multi Brand Exclusive Multi Brand Store
Slide 21: Revenue from International Business Growing
REVENUE FROM INTERNATIONAL BUSINESS GROWING International Business – Stellar Financial Performance over last 8 years Super Meteor 650 launched in Brazil Bullet 350 launched in Thailand & South Korea Shotgun launched in Australia & Malaysia INVESTOR PRESENTATION 20 August 2024
Slide 22: Widening Reach in the Non-Motorcycle Business
WIDENING REACH IN THE NON-MOTORCYCLE BUSINESS INVESTOR PRESENTATION 21 August 2024
Slide 23: Spares and Service
SPARES AND SERVICE Royal Enfield Service Know the service cost of your motorcycle with No.1 After Sales Score Royal Enfield Service - FADA SURVEY, 2023 cost calculator INVESTOR PRESENTATION 22 August 2024
Slide 24: Genuine Motorcycle Accessories
GENUINE MOTORCYCLE ACCESSORIES Genuine Motorcycle Accessories 23
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24
Slide 26: Apparel
APPAREL Helmet Thought Road Safety Week Royal Enfield Nirvik V2 Riding Cruising Lifestyle Leadership Collection We gave sustenance a Jacket To elevate the Helmet new picture and took a “Where Sports Meets Launched our Most With #CruisingCollection, business and establish quirky approach for Lifestyle
Slide 27: Operations Overview
OPERATIONS OVERVIEW
Slide 28: Production Capacity
PRODUCTION CAPACITY THIRUVOTTIYUR ORAGADAM VALLAM No Assembly operations; Plating & Auto buffing 600,000 600,000 motorcycles per annum motorcycles per annum capacity capacity INVESTOR PRESENTATION 27 August 2024
Slide 29: Building Global Capabilities for Future
BUILDING GLOBAL CAPABILITIES FOR FUTURE UK CHENNAI ▪ UK Tech Centre at Bruntingthorpe to be a hub for the ▪ The Chennai tech centre has the engineering and design product development and research activities, driving the teams working under one roof and houses state-of-the-art mid-range motorcycle pl
Slide 30: Brand
BRAND
Slide 31: Brand Partnerships
BRAND PARTNERSHIPS Royal Enfield Hunter 350 x Blue Tokai x RE Meteor 350 Spotify X Royal Enfield Huemn collaboration Royal Enfield and Huemn launched "A Shot of The Uncover Coffee ride from January 19-21, On June 21, marking World Music Day and Mumbai," a vibrant collection inspired by the 2023, introd
Slide 32: Guerrilla 450 Launched
GUERRILLA 450 LAUNCHED WEBSITE VISITS INSTAGRAM- Reach - 187 Mn Total Users New Users Trended #1 for 3 days on hot search 2,37,168 1,83,087 YOUTUBE- Engagement - 12.6 Mn INVESTOR PRESENTATION August 2024
Slide 33: Shackleton Collab
Own the Himalayas | Building the adventure culture through a Royal Enfield lens SHACKLETON COLLAB EUROPE LAUNCH DAINESE COLLAB ADAM RIEMANN VANESSA RUCK ABR
Slide 34: Rides and Community
RIDES AND COMMUNITY Himalayan Adventure East Zone Regional North Zone Ride Himalayan Adventure Manang Ride Tibet The largest, fastest growing and the most engaged online motorcycle brand community in the world. On-ground and on-line communities come together to make a vibrant and eager audience. INV
Slide 35: Customer Engagement Programs
Customer Engagement Programs ● 2 Large Format Zonal Rides successfully executed North Bengal Ride (Sikkim) and City to Sky (Amritsar to HP). ● Lost Customers Ride and DiY session engaging 25+ customers who were no longer availing RE services. ● Riders Rendezvous Gujarat 2024 inaugural edition ~290 +
Slide 36: Digitally Enabled Customer Experience
DIGITALLY ENABLED CUSTOMER EXPERIENCE RE App - 3D configurator Vehicle Health Report - motorcycle guide for service RE Mechanic App & experience REApp INVESTOR PRESENTATION 35 August 2024
Slide 37: Slide 37
Slide 38: Leading Premium Motorcycle Brand
LEADING PREMIUM MOTORCYCLE BRAND #1 86% Consideration Culture Community Driven Builder #1 51% Top of Mind Awareness SHARE OF VOICE* NET SENTIMENT 50.2% 30 percentage 92.3% 32 percentage points points ahead of our ahead of our closest closest competitor competitor ● Our Top of Mind Awareness (first br
Slide 39: One of the World's Strongest Fully Organic Social Media Community
11.4 MILLION ONE OF THE WORLD’s STRONGEST FULLY ORGANIC ❏ ❏ ❏ 173K - Average Engagement per Brand post 113M - Total Engagement 249M - Total Reach SOCIAL MEDIA COMMUNITY INSTAGRAM LINKEDIN YOUTUBE FACEBOOK TWITTER INVESTOR PRESENTATION 38 August 2024
Slide 40: Sustainability
SUSTAINABICBEM |
Slide 41: Sustainability Focus
SUSTAINABILITY FOCUS Environmental ▪ Improve water positivity 80% targeted ( Scope 1 & 2) ▪ Commitments towards zero liquid discharge 01 emission intensity ▪ Eliminate utilisation of single use plastic reduction per motorcycle by ▪ Focus on increasing share of renewable energy FY 29-30*. ▪ Reducing
Slide 42: Social Mission x Royal Enfield
SOCIAL MISSION x ROYAL ENFIELD GREEN HUB HIMALAYAN KNOT GREEN PITSTOP ❏ Green Hub fellowship in ❏ Eri & Cotton Apparel production ❏ CAMP KHARU LAUNCH - progress with 20 fellows initiated. 8 & 9th of June 24. onboarded. ❏ Stock preparation for Ziro ❏ Introduction walkthrough ❏ Grants for conservation
Slide 43: Among the Industry Leaders in Sustainability Practices
AMONG THE INDUSTRY LEADERS IN SUSTAINABILITY PRACTICES – EML is member of S&P Global LargeMidCap ESG Index – Among Top 3 Automotive ESG leaders from India; Top 15%ile of Global Automakers in Corporate Sustainability Assessment. A 13.2 Low risk Among the top 10 Auto Rank #8 out of 90 in companies glo
Slide 44: Volvo-Eicher Commercial Vehicles
VOLVO-EICHER COMMERCIAL VEHICLES
Slide 45: 15 Years of Driving Modernisation
15 YEARS OF DRIVING MODERNISATION Leveraging the best of both worlds Respect Fair and Ethical ▪ Leadership in Light & Medium ▪ Global expertise Excellence Duty segments ▪ Leadership in product technology ▪ Frugal engineering & operations Customer Centric ▪ Well defined processes and ▪ After sales inf
Slide 46: VECV Board
VECV BOARD Leaders with proven track record Siddhartha Lal Sofia Helena Frandberg Joachim Rosenberg Vinod K. Aggarwal Chairman of the Board Chairperson - VE Commercial EVP and Executive Board Member, Managing Director & CEO VECV MD Eicher Motors Ltd Vehicles Ltd. Volvo Group Chairman of the Board, UD
Slide 47: Q1 FY25 - Performance Highlights
Q1 FY 25 - PERFORMANCE HIGHLIGHTS ● The Indian economy has remained resilient through this period of geo-political turmoil, the elections and monsoons. This economic resilience is supporting CV demand across all key sectors. ● CV sales for June 2024 were 41,754 units, with a growth of 3.8% over LYM.
Slide 48: Modernized Product Range
MODERNIZED PRODUCT RANGE Premium & Value segments with Electric, Natural Gas and Diesel Offerings INVESTOR PRESENTATION 47 August 2024
Slide 49: VECV forms JV with iTriangle Infotech
VECV forms JV with iTriangle Infotech VE Connected Solutions (VECS) ● JV Agreement signed between VECV & iTriangle on 15th May. ● VECS drives next step digital solutions for Commercial Vehicle industry ● Commercial operations in VECS to start from July. ● VECS will be in the business of telematics a
Slide 50: Connected Services & New Launches
Connected Services & New launches Pro 6028TM 2050 D Maxi Cab Single Window to monitor all Business KPI’s Sales, Service, Spares, EOS, My Eicher, Soft Products. Uptime centre focus on Remote Diagnostics and over 98% concerns resolved within a record time of 4 hours. Starline Next Pro 3019 My Eicher A
Slide 51: Eicher E-Mobility
EICHER E-MOBILITY Covering diverse applications for trucks & buses Landmark delivery of 6 EV buses to the Indian Army Delivery of 1st Pro 2055 EV VECV also commenced the use of Electric busses at Pithampur Plant for Staff Transportation INVESTOR PRESENTATION 50 August 2024
Slide 52: Eicher E-Mobility
EICHER E-MOBILITY Delivered electric commercial vehicles ● The first Pro 2055 EV was handed to Safe-Express, marking a milestone, while a partnership with Amazon for 1000 Pro 2049 EVs showcased a commitment to sustainable logistics. ● Delivered EV 9m buses to the Indian Army and National Highway Rail
Slide 53: Established Industrial Footprint
ESTABLISHED INDUSTRIAL FOOTPRINT VPS, IoT 4.0, Sustainability driven New Truck Plant – Bhopal Truck Plant – Pithampur Capacity 40,000 p.a. Parts Distribution Center - Capacity 90,000 p.a. Pithampur VE Powertrain – Pithampur Gear Box Unit – SEZ Capacity 80,000 p.a Pithampur Eicher Bus Plant – Baggad
Slide 54: Premium Distribution Network with 950 Touchpoints
PREMIUM DISTRIBUTION NETWORK WITH 950 TOUCHPOINTS INVESTOR PRESENTATION 53 August 2024
Slide 55: VECV Ranked Highly in Dealer & Customer Satisfaction Surveys
VECV RANKED HIGHLY IN DEALER & CUSTOMER SATISFACTION SURVEYS CUSTOMER SATISFACTION SURVEY 2024 #1 in LMD #1 in HD #2 in Buses Company 1 Trucks Trucks Company 2 on both in Customer on both Company 3 Customer Satisfaction Customer Satisfaction and and No. 2 in Satisfaction Company 4 Loyalty Index Loya
Slide 56: Awards & Recognition
AWARDS & RECOGNITION Best Brand of 2023 - ET Edge INVESTOR PRESENTATION 55 August 2024
Slide 57: Won National Awards for Excellence in Brand & Marketing
WON NATIONAL AWARDS FOR EXCELLENCE IN BRAND & MARKETING Eicher Nayi Soch wins My Eicher wins Best New Eicher Uptime Beat wins Marketing Campaign of Brand, Product or Service Marketing Excellence in the Year Launch Award CV Industry INVESTOR PRESENTATION 56 August 2024
Slide 58: Growing Market Share in a Competitive Market
GROWING MARKET SHARE IN A COMPETITIVE MARKET Volvo Trucks India* Light & Medium Duty Trucks 95.3% 34.0% #1 #2 72.6% 25.3% FY 2009 1Q FY25 FY 2009 1Q FY25 *Market share in high end premium segment Buses (Combined) Heavy Duty Trucks (Combined) 20.3% 9.0% #3 2.0% #3 5.3% FY 2009 1Q FY25 FY 2009 1Q FY25
Slide 59: Q1 FY25 - Steady Overall Growth; Strong Export Recovery
Q1 FY 25 - Steady overall growth; Strong Export recovery Volumes Market Share (%) Growth Segments Q1'FY25 Q1'FY'24 % Q1'FY25 Q1'FY'24 HD 4689 4662 0.6 8.4 8.5 LMD 7842 8308 (5.6) 34.0 37.0 3.5-5T 332 433 (23.3) 25.4 25.1 HD Bus 391 415 (5.8) 6.5 14.6 LMD Bus 4841 4427 9.4 23.8 26.6 Total Bus 5232 48
Slide 60: Q1 FY25 VECV Financial Highlights
Q1 FY 25 VECV FINANCIAL HIGHLIGHTS 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 income (part of other income) has been excluded from Total Income The figure
Slide 61: Consistent Topline Profitable Through Business Cycles
CONSISTENT TOPLINE PROFITABLE THROUGH BUSINESS CYCLES Total CV# Volumes and Market Share Net revenue from operations (in nos and %) EBITDA^ and Margins Profit After Tax CV# - Commercial Vehicles (Domestic sales) The figures in % indicate EBITDA Margins EBITDA – Earning Before Interest ,Tax, Depreciati
Slide 62: Eicher Motors Financial Review
EICHER MOTORS FINANCIAL REVIEW
Slide 63: Significant Value Creation for All Stakeholders
SIGNIFICANT VALUE CREATION FOR ALL STAKEHOLDERS Market Capitalisation (INR Billions) INVESTOR PRESENTATION 62 August 2024
Slide 64: Q1 FY25 Financial Highlights
Q1 FY 25 FINANCIAL HIGHLIGHTS Total Sales Revenue from operations Motorcycle Volumes ('000) EBITDA and Margin PAT All figures refer to EML Consolidated numbers and are in INR Crs unless specified INVESTOR PRESENTATION 63 August 2024
Slide 65: Consistent Delivery Leading to Strong Cash Accruals
CONSISTENT DELIVERY LEADING TO STRONG CASH ACCRUALS Total Sales Total Revenue from operations EBITDA and Margin Motorcycle Volumes ('000) PAT Net Cash OCF Net Cash = Cash and cash equivalent – Total debt All figures are in INR Crs unless specified INVESTOR PRESENTATION 64 August 2024
Slide 66: Profit & Loss Statement (Consolidated)
PROFIT & LOSS STATEMENT (Consolidated) Profit and Loss Account FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Sales Volume: Two Wheelers (Nos.) 822,724 697,582 609,403 595,474 824,066 9,12,003 227,736 Total revenue from operations (net of 9,797 9,154 8,720 10,298 14,442 16,536 4,393 excise) Manufacturing and
Slide 67: Balance Sheet (Consolidated)
BALANCE SHEET (Consolidated) Particulars FY19 FY20 FY21 FY22 FY23 FY24 Net Fixed Assets (including CWIP and 2, 324 2,690 2,748 2,929 3.162 3,469 Pre-operative Expenditure) Investments 4,923 5,749 3,902 7,721 12,101 13,346 Other Non Current Assets 180 102 125 165 252 2,161 Current Assets Inventories
Slide 68: Statement of Cash Flows (Consolidated)
STATEMENT OF CASH FLOWS (Consolidated) Particulars FY19 FY20 FY21 FY22 FY23 FY24 Profit before tax and after share of profit 3,297 2,355 1,798 2,203 3,800 5,202 of Joint venture Operating profit before changes in working 2,941 2,236 1,912 2,172 3,552 4,404 capital Net Changes in working capital (457) 8
Slide 69: Royal Enfield
Royal Enfield Royal Enfield Royal Enfield