Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (September 2021)
57 slides from Eicher Motors's investor presentation, September 2021
Slide 1: Eicher Investor Presentation
@ = EICHER Investor —
Slide 2: Contents
Contents (1) EICHER MOTORS LIMITED — OVERVIEW (2) ROYAL ENFIELD (3) VE COMMERCIAL VEHICLES LIMITED ESG UPDATE - Environment | Social | Governance = E 1C¢. H E R INVESTOR PRESENTATION = September 2021
Slide 3: Eicher Motors Limited Overview
Eicher Motors Limited OVERVIEW =
Slide 4: Eicher Motors Ltd. (EML) - Group Structure
Eicher Motors Ltd. (EML) - Group Structure . wage Domestic Promoter Group Foreign Institutional Institutional Others 49.22% nvestors Investors 28.83% 12.46% ————— 90% 100% Eicher Motors Limited (EML) Volvo Group Business Unit 45.6% 54.4% ROYAL ENFIELD Royal Enfield (RE) VE Commercial Vehicles Ltd (V
Slide 5: Royal Enfield
ROYAL ENFIELD
Slide 6: Royal Enfield is the global leader in the 250-750cc mid-segment motorcycles
Royal Enfield is the global leader in the 250 — 750cc, mid-segment motorcycles. With ~90% market share in the Indian mid-size segment, we have rapidly grown our presence across the world — with more than 790 retail touchpoints across 60+ countries. Our world-class motorcycles are segment leading acr
Slide 7: Launch of the Classic in 2009 was an inflection point
Launch of the Classic in 2009 was an inflection point Volumes grew by ~40% CAGR between CY-2010 to FY-2018, prior to significant external headwinds Replacement opportunity awaits as most of the sales While FY20-21 volumes are impacted due to COVID-19, happened in the past 6 years our new models incl
Slide 8: Unprecedented Value Creation for all stakeholders
Unprecedented Value Creation for all stakeholders Market Capitalisation (INR Billions) to nnco en nconncc nec cnnnce nec c nnn 113x returns over last 13 years |iilaaiaaannnn > 772 695 712 697 560 520 500 + 431 357 161 69 Mar-O9 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Ma
Slide 9: Global Giant
Global Gi
Slide 10: Strongly established Premium Brand in India with an expansive premium distribution network
Strongly established Premium Brand in India with an expansive premium distribution network North 328 | 362 West 210 | 185 South 309 | 262 GS EICHER Store count = Large stores = Studio stores East 186 | 228 Chennai » Global Headquarters « Technology Centre » Manufacturing Facilities Tiruvottiyur Orag
Slide 11: Global mid-size motorcycle market is underserved and is a huge opportunity
Global mid-size motorcycle market is underserved and is a huge opportunity The Oddity of the Motorcycle Industry Globally... is an opportunity CAGR:2012-18 Most Developing > 750cc ; Motoreycles Industries Markets pee ustry 250-750cc REisdrivingupgrade along =si‘“‘(‘i‘iakhSO!™!™!™!™”™~*~<C~‘“‘<; 2 3O
Slide 12: Established brand with profitable business model backed by premium quality product
Established brand with profitable business model backed by premium quality product @ re) (eo) BRAND & PRODUCT te) NETWORK « Strong brand = Strong pipeline of new « Focused approach for salience coupled with products for next international markets equity as a premium 5-years & beyond for expansion an
Slide 13: Bruntingthorpe, UK New Product Introduction framework
Bruntingthorpe, UK New Product Chennai, India Introduction (NPI) framework in place to develop best-in-class products in an optimal timeframe Next five-year product pipeline in place Identify Visual design Engineering analysis, ; . : Continuous opportunities, of the product design and validation Def
Slide 14: Developed and Developing Markets
Developed Markets Exclusive tei Store Brand Outlet North 1 141 America Countries with exclusive stores = USA-1 Marketing Company - USA Exclusive (aati Store Brand Outlet Europe, 40 386 UAE Countries with exclusive stores Austria —1 Belgium —- 1 France — 16 Italy -3 Netherland — 1 Portugal — 3 Spain-
Slide 15: Share of revenue from international markets has grown 3x over the last 5 years
Share of revenue from international markets has grown 3x over the last 5 years. Network Expansion and Touch Points CKD Setup Evaluating opportunities to set up CKD facility in priority markets in APAC and LATAM region. Recently set-up a CKD facility in Argentina and Colombia GS EICHER New Retail for
Slide 16: Motorcycling ecosystem
Motorcycling chit
Slide 17: Product Portfolio — Continue to focus on mid-weight segment
Product Portfolio — Continue to focus on mid-weight segment & Royal Enfield range of motorcycles is able to address a unique mix of appeals — from its traditional customer base to urban, aspiration-driven youth i Int t Bullet Classic Meteor 350 Himalayan “Tega : cect a Hs — — — = Oldest brand = Sens
Slide 18: All-new Classic 350: Built Ground-Up
All-new Classic 350: Built Ground-Up Amazing reviews for the all new Classic 350 “The new Classic 350 is just like the current “The Classic 350 will spearhead appeal for Classic 350 but fresher, stronger, livelier and the modern classic, single cylinder Royal vastly more responsive- which is a job w
Slide 19: Manufacturing excellence and technology
SRK methodology for new products Automated critical sub-assemblies Best-in-class European technology Flexibility - Over 500 SKUs in 5 lines First-time right with 400 Poka Yokes 46 painting robots One bike every 50 seconds 100% Engine - tested and certified Handles over 50 different shades 300 high-p
Slide 20: The Customer at the centre
The Customer at the centre SALES 5x Sacto, 2015 2016 2017 2018 2019 Store Layout Service on Wheels Reduction in Defects = Process excellence = First time right = Adoption of “Shoki Ryudo Kanri = Brand retail identity = Extended warranty and AMC for (SRK)" process better upkeeping of motorcycles = Re
Slide 21: Royal Enfield customer initiatives
ROYAL ENFIELD Cruiseyour ‘own way with Meteor 350. Make It Yours - a unique Unique compact store format motorcycle personalization with 3S store offerings initiative Catalyst to deepen association 3D configurator motorcycle with riding enthusiasts & guide for frictionless service customers experienc
Slide 22: Building the Pure Motorcycling Ecosystem
Building the Pure Motorcycling Ecosystem Provide frictionless experience for RE Riders Explore new revenue / profit pool from adjacencies In Store Opportunity In Use Opportunity ) PN Road Side f £) a4 ‘ : Vp Spares Assistance Be osc 4 Annual = | e % Maintenance @) Extended Be) Contract A@ = Warranty
Slide 23: INVESTOR PRESENTATION
INVESTOR PRESENTATION September 2021 23
Slide 24: Royal Enfield history timeline
1926 A major fire br twin-port foot operate ompression les arrive from in early? h hardy and easy Johnny Brittain wins the prestigious “Sc Six Day Trial’ on. Bullet, HNP 331 field india’ the INVESTOR PRESENTATION September 2021 2017 Production commences at Royal Enfield’s third manufacturing facilit
Slide 25: On-ground and on-line communities
On-ground and on-line communities together make a vibrant and eager audience ‘Digital First’ approach INVESTOR PRESENTATION Note: Royal Enfield’s Marquee Rides - Rider Mania and Himalayan : September 2021 Odyssey were not conducted in FY 2020 due to COVID-19 pandemic
Slide 26: Digital campaigns and engagement
#TimelessClassic Meteor Watch Day #RESlideSchool | #BuildYourOwnLegend | eeoctioo Classic x GoPro World Plastic Bag free day Environment Day Royal Enfield x KNOX #LeaveEveryPlaceBetter Royal Enfield x American Flat Track “Reach - Total reach captures number of unique users reached in a digital campa
Slide 27: Hybrid Engagement Leading to Strong Consumer Equity
Hybrid Engagement Leading to Strong Consumer Equity #4 ROYAL ENFIELD 72% Consideration ROYAL ENFIELD FE 42% Top of Mind Awareness 400 bps ahead of our closest competitor 1400 bps ahead of our closest competitor *Internal Millward Brown Brand Health Report with sample size of ~3200) = Among the host
Slide 28: Business Performance
Business PA Performance,_=
Slide 29: Consistent Delivery leading to strong cash accruals
Consistent Delivery leading to strong cash accruals La All figures are in Rs. Crs unless specified Total Revenue EBITDA Total revenue from operations (net of excise duty) Zi204 FY17 FY18 FY19 FY20* i a -= Profit After Tax Net Cash ea! PY17 FY18 FY19 FY20* FY2d? PYi7 Fyis Pyte Fyeor Frat Net Cash = C
Slide 30: Strong performance in Q1 '22 amidst pandemic
Strong performance in Q1 ‘22 amidst pandemic LA All figures are in Rs. Crs unless specified Sales Volume* Total Revenue* Z Market Share (India) QIFY22 In Thousand afl 116% QtFY21 QIFY22 EBITDA and Margins* Profit After Tax* TT 17.5% 2,125% 0.2% 1 12 Site Size QiFY21 QIFY22 “ Market share in above 12
Slide 31: Strong steps taken to mitigate short term supply chain challenges
Strong steps taken to mitigate short term supply chain challenges Challenge Mitigation Semiconductor Component Closely working with Shortage Part & electronic component suppliers Acute shortages of electronic I to ensure supplies by components (ICs, microprocessors, etc.,) globally impacting compone
Slide 32: Multiple Management Actions Taken to Optimize Cost Base
Multiple Management Actions Taken to Optimize Cost Base rialy Business Vig Top Line Selling Price reset actions: « Initiated quarterly selling price reset framework with an objective to review selling prices to protect gross contribution. = Price hikes initiated in India & International markets GS E
Slide 33: Back-to-back Champion
BACK-T0-BACK _ 7 CHAMPION @& rewnee INVESTOR PRESENTATION September 2021 MOTORING: *Source: As per MCIA data from January 2020 to December 2020 33
Slide 34: Poised to become the first premium global consumer brand from India
Poised to become the first premium global consumer brand from India Processes and systems Sustainability: ESG = EICWMEE INVESTOR PRESENTATION : . Tet 7, September 2021 34
Slide 35: VE Commercial Vehicles
‘) == VE COMMERCIAL VEHICLES == AVOLVO GROUP AND EICHER MOTORS JOINT VENTURE E ICHER INVESTOR PRESENTATION = September 2021 35
Slide 36: What drives us....Vision & Values
What drives us....Vision & Values To be recognised as the industry leader driving modernization in commercial transportation in India and the developing world = E 1C¢. H E R INVESTOR PRESENTATION September 2021 Respect Fair and Ethical Excellence Customer Centric Passion 36
Slide 37: Businesses...Eicher Trucks and Buses, Volvo Trucks & Buses in India, Drivelines and Components
Businesses...Eicher Trucks and Buses, Volvo Trucks & Buses in India, Drivelines and Components Eicher Trucks Eicher Buses 06¢ Engines & Drivetrain Engineering Components Volvo Trucks = E 1C¢. H E R INVESTOR PRESENTATION = September 2021 37
Slide 38: Joint Venture since 2008... Merging the best of both worlds
Joint Venture since 2008... Merging the best of both worlds VOLVO EICHER Global expertise Leadership in Light & Medium Duty segments Leadership in product technology « Frugal engineering & operations Well defined processes & controls After sales infrastructure = Brand image = Cost effective operatio
Slide 39: VECV JV Capability and Market Position strengthened over past 13 years
VECV JV Capability and Market Position strengthened over past 13 years... Successful synergies based on trust, mutual respect & win-win 2008-2013 2013-2020 2021 > JV formation and initial Wave 2 Synergy Aspiration & Focus Synergy projects -Commercial focus areas = Product development = Eicher Pro se
Slide 40: Strengthened market share in all segments through Driving Modernization
Strengthened market share in all segments through Driving Modernization Light & Medium Duty Trucks 30.1% 25.1% FY 2009 FY 2021 Buses 19.7% 5.3% FY 2009 FY 2021 = E 1C¢. H E R INVESTOR PRESENTATION = September 2021 Heavy Duty Trucks 6.9% 1.3% FY 2009 FY 2021 Volvo Trucks India* 84.3% 73.4% FY 2009 FY
Slide 41: Consistent financial performance despite headwinds
Consistent financial performance despite headwinds All figures are in Rs. Crs unless specified Total Revenue Total revenue from operations (net of excise duty) FY17 FY18 FY19 FY20* FY21* EBITDA‘ and Margin Profit After Tax @ EBITDA = EBITDA Margin UL tL FY17 FY18 FY19 FY20* FY21* FY17 FY18 FY19 FY20
Slide 42: Eicher BSVI Product Portfolio...Renewed range
Eicher BSVI Product Portfolio...Renewed range. Broad application segment coverage Sub 5T — 16T 4.9T to 16T Haulage 2.8CuM to Pro 2000 Pro 2000 MD Range Pro 2000 CNG Range Pro 3000 MD Range 6 5CuM Tippers Pro 2049, Pro 2059XP, Pro 2110, Pro 2110xP, Pro 2049 , Pro 2059XP, Pro 3012, Pro 3014, Pro 2080X
Slide 43: Transferred Volvo Buses India operations and people into VECV in 2020
Transferred Volvo Buses India operations and people into VECV in 2020 to create an industry leader INVESTOR PRESENTATION September 2021 43
Slide 44: Electric range... ready for commercialization
Electric range... 9 m bus for city application ready for commercialization mon vill E ICHER INVESTOR PRESENTATION = September 2021 44 ‘)
Slide 45: Manufacturing... enhanced with Volvo buses and Industry 4.0 Bhopal plant
Manufacturing... enhanced with Volvo buses and Industry 4.0 Bhopal plant f Vehicle Assembly plant - Bhopal Eicher Engineering 1 Components — Unit I & Il sail Truck Plant-Pithampur — Dewas Plant Truck Plant-Bhopal VECV CorporatelOffice oe MadhyaPradesh_ == Eicher Engineering Volvo Bus Plant, Componen
Slide 46: Strengthening distribution and service reach....#1 in Dealer Satisfaction
Strengthening distribution and service reach....#1 in Dealer Satisfaction #1 in Dealer Satisfaction* Commercial Vehicie VECV Mahindra Tata Motors Ashok Leyiand Bharat Benz Force Motors. INVESTOR PRESENTATION September 2021 Focus on East @ 35 -Dealer @ Planned 35 - Dealer . 3S -COCO @ Planned 2S - De
Slide 47: Leading in Digitization...driven by 100% connected vehicle fleet
Leading in Digitization...driven by 100% connected vehicle fleet Fleet Monitor [27 VEHICLE US: ACE a x rap 273 < 4 1 321Kms 6.7Hrs 7 _ — es Cs = Ban — Digital Digital Digital Customer Business Enterprise E ICHER INVESTOR PRESENTATION = September 2021 47 ‘)
Slide 48: INVESTOR PRESENTATION
INVESTOR PRESENTATION September 2021 48
Slide 49: Themes for Sustainability Journey
Themes for Sustainability Journey = . "1 Environmental Become water positive Attain Carbon neutrality Work towards zero liquid discharge Eliminate utilization of single use plastic Focus on increasing share of renewable energy (primarily solar) Aim for zero wood usage in operations Reducing paper us
Slide 50: Greener Business Operations
Greener Business Operations Energy and Emissions Conservation, efficiency, renewable energy, reduced emissions Material Water and Effluent * Rainwater Harvesting ZLD, Water Efficiency, WASH Pledge Recycled material and Recyclable material Environmental Compliance Waste i Consent to establish and ope
Slide 51: Committed to drive an active agenda towards sustainability and the environment
Committed to drive an active agenda towards the sustainability and the environment at large Village development program, rural electrification and livelihood promotion in remote villages Working on conserving and harvesting water at the manufacturing facilities to turn them ‘Water Positive’. Organis
Slide 52: INVESTOR PRESENTATION
INVESTOR PRESENTATION September 2021
Slide 53: September 2021
September 2021 53
Slide 54: September 2021
September 2021
Slide 55: VECV Management ... Deep experience in Indian & Global CV industry
VECV Management ... Deep experience in Indian & Global CV industry Strategy, Brand & Finance, Legal & Anders Hager BK Communication Audit CFO Bindiganavile ‘ A SVP vine page Businesses Processes Rajesh Mishra Human Resources | and IT cDbo ee | Trucks ee | Eicher Trucks and Buses, VEPT § Technology a
Slide 56: Strong Governance Principles
Strong Governance Principles EML and VECV are fully 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
Slide 57: Thank You
Thank You Get Social © Royal Enfield tf) Royal Enfield £ ) VE Commercial Vehicles
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