Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (November 2018)
63 slides from Eicher Motors's investor presentation, Nov 12, 2018
Slide 1: Disclosure to stock exchanges under Regulation 30
November 12, 2018 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 Symbo
Slide 2: Investor Presentation November 2018
Investor Presentation a November 2018
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 November 2018 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 September 2018)
Shareholding Pattern (30th September 2018) Foreign Institutional Domestic Investors Institutional Promoter Group* Investors Others 49.35% 31.46% 5.64% 13.55% 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) Roya
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 Vinod Aggarwal Managing Director & CEO Managing Director & CEO Prateek Jalan* Siddhartha Lal Independent Director Eicher Nominated Director Manvi Sinha Jacques Michel Independe
Slide 9: Business Highlights – FY 2017-18
Business Highlights – FY 2017-18^ 0 820,492 >90% EML continues to be Motorcycles sold in FY18, Royal Enfield’s market Debt free company 7x in last 6 years share in the mid-size motorcycles* segment 31.9% 32.2% Royal Enfield EBITDA VE Commercial Vehicles margin in FY18, benchmark market share in dome
Slide 10: Royal Enfield
ROYAL ENFIELD INVESTOR PRESENTATION November 2018 9
Slide 11: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION November 2018 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 Continental GT Himalayan Longest production Sense of Definitive highway Fun, youthful Purpos
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 120 journalists from 13 countries participated in the global media ride of the Interceptor 650 and the Continental GT 650 at Santa Cruz, California Continental GT 650 Interceptor 6
Slide 14: Royal Enfield aims to Lead and Expand the Mid-Weight Motorcycle 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 upgrade
Slide 15: 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 16: Royal Enfield - The Himalayan Sleet
Royal Enfield - The Himalayan Sleet Inspired by the mountains Built to inspire the explorer within New colourway INVESTOR PRESENTATION November 2018 15
Slide 17: Classic Signals 350
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 18: Product Portfolio – Gear
Product Portfolio – Gear ROYAL ENFIELD GEAR AUTUM WINTER 2018 – GEAR COLLECTION INSPIRED BY A MOTORCYCLING WAY OF LIFE Royal Enfield Gear extends the Our upcoming Autumn Winter 2018 collection, has a range of brand beyond the legendary made-to-detail apparel and lifestyle accessories which let a rid
Slide 19: 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 80% to “UCE” 68% 800,000 70% 700,000 57% 666,493 Launch of 52% 60% 600,000 508,099 “Classic” 42% 5
Slide 20: 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 Thousands) EBITDA & Margins Total revenue from operations (net of excise duty) 31.3% 31.9% 31.7% 31.5% 35% 27.6% 30% 25% 20% 13.9% 11
Slide 21: Our Footprint
Our Footprint UK USA Austria Milwaukee France Spain Portugal Mexico UAE Thailand Vietnam Colombia Philippines Malaysia Royal Enfield Exclusive Indonesia Stores (Overseas) - 38 USA – 1 | Mexico – 1 | Colombia – 7 | Brazil UK – 5 |UAE – 1 | France – 4 | Spain – 4 | Sao Paulo Indonesia – 3 | Thailand –
Slide 22: Industry Overview
Industry Overview Motorcycle Volumes (India) (in lacs) India - largest motorcycle market in world 126 111 107 107 FY15 FY16 FY17 FY18 Growth rate of various motorcycle segments 56.3% 52.2% 31.7% 28.6% 12.7% Indicates growing premiumisation 1.4% 2.3% of motorcycle market -2.1% FY15 FY16 FY17 FY18 Les
Slide 23: Opportunity – Domestic Market
Opportunity – Domestic Market India to become a US$3.55 trillion (current market India’s demographic profile (year-2015) price) economy by 2021 1% 9% Age Group US$ 3.55 Tn. 28% 0-14 US$ 1.99 Tn. US$ 2.57 Tn. 7.7% 15-59 7.3% 7.2% 60+ 80+ 2013 - 15 2016 - 18f 2019f - 21f 62% Indian Economy: A shift to
Slide 24: Opportunity – International Business
Opportunity – International Business The Oddity of the Motorcycle Industry Globally… is an opportunity Most Industries Developing Motorcycles > 750cc Markets Industry Premium 250-750cc Mid <250cc Segment CAGR: -2% Period: 2012-16 Mass Commuter Motorcycles Motorcycle Industry Leisure Motorcycles Prem
Slide 25: Preparing for Future Growth
Preparing for Future Growth Setting up Phase-2 of plant at Vallam Vadagal near Chennai Capacity Production capacity plan of 9,50,000 for FY2018-19 to be reassessed after the end of the strike 2 Technology centres in Chennai and UK Product Production of the new Twin motorcycles “Interceptor 650 and D
Slide 26: Preparing for Future Growth - UK Technical Centre
Preparing for Future Growth - UK Technical 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
Slide 27: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives One Ride 2018 Himalayan Odyssey July 2018 One Ride is a marquee event from Royal Enfield to encourage The 15th edition of Royal Enfield ‘Himalayan Odyssey’, its enthusiasts from around the world to ride as one. considered the holy grail of motorcycling, saw
Slide 28: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives In August, Royal Enfield organised Moto Himalaya where 28 riders from 11 countries rode up to Ladakh The 1st ever Tour of North East took place in October 2018 which saw participation from more than 30 riders INVESTOR PRESENTATION 27 November 2018 Continued…
Slide 29: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives The 7th edition of Tour of Bhutan was flagged off from Siliguri with 31 participants, riding 1,400 kms in 10 days The second edition of REUNION in Colombia was also organized with more than 130 riders participating in the event INVESTOR PRESENTATION November
Slide 30: 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 and Patna • Pre-owned, refurbished and restored motorcycles - a first-of-its-kind in two-wheeler industry • Accessible, hassle-free, transparent sale and purchase of pre-owne
Slide 31: 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 32: Royal Enfield Garage Café, Goa
Royal Enfield Garage Café, Goa A unique space that embodies the pure motorcycling culture and lifestyle INVESTOR PRESENTATION November 2018 31
Slide 33: 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 November 2018 32
Slide 34: 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 November 2018 33
Slide 35: 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 November 2018 34
Slide 36: VE Commercial Vehicles
VE COMMERCIAL VEHICLES INVESTOR PRESENTATION November 2018 35
Slide 37: 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 38: 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 39: 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) 2017: Pro 5000 Series launch 2016: Launch of Eicher Pro 1049 2015: Inauguration of ‘Customer (
Slide 40: Volumes
Volumes Eicher Light to Medium Eicher Heavy Duty Total CV* Volumes(in nos) Duty Trucks (5-15 tonne) (in nos) Trucks (16 tonne +) (in nos) 35,023 16,054 6,200 26,600 11,378 4,236 11,109 12,372 49,042 48,831 52,025 58,604 65,932 31,381 29,541 24,560 24,440 30,164 7,352 7,699 9,026 Buses (in nos) Expor
Slide 41: Market Share
Market Share Eicher Heavy Duty Trucks Eicher Light and Medium Duty Trucks (excluding exports) In % (excluding exports) In % 33.9 33.5 4.9 32.2 4.6 4.3 4.2 31.4 31.3 4.0 4.0 30.5 29.6 3.1 CY11 CY12 FY16 FY17 FY18 H1FY18 H1FY19 CY11 CY12 FY16 FY17 FY18 H1FY18 H1FY19 Buses (excluding exports) In % VECV
Slide 42: 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) 5,016 5,348 7,737 8,553 10,049 4,142 5,575 CY11 CY12 FY16 FY17 FY18 H1FY18 H1FY19 EBITDA & Margin* Profit After T
Slide 43: India Facilities – Manufacturing and Operations
India Facilities – Manufacturing and Operations Baggad *Abbreviation: EEC - Eicher Engineering Components Number of employees(VE Commercial Vehicle) – 4,869* VEPT - VE Power Train SEZ - Special Economic Zone (*permanent) (as of Sept 2018) HQ - Head Quarter INVESTOR PRESENTATION November 2018 42
Slide 44: VECV Trucks and Buses Distribution network
VECV Trucks and Buses Distribution network Eicher Truck & Bus Network Volvo Truck & Bus Network Dealer network 293 nos. including 15 COCO* outlets Hub and spoke network model 24 distributors, 93 Eicher Genuine Parts Shoppe and 2,764 multi-brand Sets benchmarks in the industry for vehicle uptime part
Slide 45: 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 46: 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 47: Eicher LMD Trucks: A Significant Player
Eicher LMD Trucks: A Significant Player Eicher Pro 1000 series (5-15 Ton GVW) Volumes 25,000 20,000 15,000 10,000 16,089 21,886 5,000 Eicher Pro 3000 series (12-15 Ton GVW) 0 7M'FY18 7M'FY19 INVESTOR PRESENTATION November 2018 46
Slide 48: Eicher HD Trucks: To Leverage Full Potential
Eicher HD Trucks: To Leverage Full Potential….. Volumes Pro 8000 series 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 6,537 1,000 9,371 0 7M'FY18 7M'FY19 Steadily growing market share Industry continues to show positive growth on account of strong demand from infrastructure Pro development
Slide 49: Volvo Trucks: Market leader in Premium Truck segment
Volvo Trucks: Market leader in Premium Truck segment Volumes Leadership in niche segments 700 600 500 400 300 200 100 386 596 FMX 10X4 (55 Ton dump trucks) 0 7M'FY18 7M'FY19 FH 520 is the flagship model of the Volvo truck range Mining tipper Tunnel tipper Over dimensional cargo Source - SIAM INVESTO
Slide 50: Eicher Buses: Steady Market Share in a Challenging Environment
Eicher Buses: Steady Market Share in a Challenging Environment Volumes 5,000 4,800 4,600 4,400 4,200 7,243 4,000 7,199 7M'18 7M'19 Electric Pro E Source - SIAM INVESTOR PRESENTATION November 2018 49
Slide 51: Tapping Global Potential
Tapping Global Potential Major focus markets are Southeast Asia, the Middle East and Exports Africa First establish in India-like markets such as Bangladesh, Nepal or Sri Lanka; Share in the overall truck and bus market already at over 20% in Bangladesh and about 15% in Nepal Export started to South
Slide 52: World Class Manufacturing set up
World Class Manufacturing set up... Most productive plant to produce up to 90,000 trucks and buses, scalable to 100,000 trucks and buses. Cab weld shop with robotic welding and integrated testing facilities CED paint shop - best in class e-Rodip German technology with robotic painting Highly flexibl
Slide 53: VE Powertrain
VE Powertrain First engine plant in India producing Euro-6 compliant engine. Exclusive manufacturing hub for medium duty engine requirements of Volvo Group. Current capacity of 50,000 engines, scalable up to 100,000 engines The 5 and 8 liter engines of this platform delivers power ranging from 180 t
Slide 54: Other VECV Business Areas
Other VECV Business Areas Eicher Engg 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. 816 cr in FY2018 INVESTOR PRESENT
Slide 55: Other VECV Business Areas
Other VECV Business Areas Eicher Non - Automotive Engines Presence in 11 countries, 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, industrial and other off-highway application
Slide 56: Proposed New Plant in Bhopal
Proposed New Plant in Bhopal Current Status Proposed ETB plant capacity 90,000, deliverable 80,000 with Proposed new plant in Bhopal with capacity of seasonal variations 40,000, scalable to 1,00,000 in future. Strategic step for future growth as current capacity Land acquired 150 acres at a special
Slide 57: Financials
FINANCIALS INVESTOR PRESENTATION November 2018 56
Slide 58: Quarterly Financial Highlights (Standalone)
Quarterly Financial Highlights (Standalone) Eicher Motors – Standalone* performance in last 4 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% 28.6% 30.0% 27.7% 700 26.1% 26.4% 24.9% 25.0% 23.6% 25.0% 600 20.0% 500 400 15.0% 300 10.0% 200 5.0% 100 18
Slide 59: Thank You
Thank You Get Social : Royal Enfield Royal Enfield INVESTOR PRESENTATION VE Commercial Vehicles November 2018
Slide 60: Appendix
APPENDIX INVESTOR PRESENTATION November 2018 59
Slide 61: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (In Rs. Cr.) Particulars Mar’17 Mar’18 Sept’18 Net Fixed Assets (including CWIP and Pre-operative Expenditure) 1,247 1,835 2,047 Investments 4,987 5,581 6,023 Other Non Current Assets 260 186 195 Current Assets Inventories 336 395 539 Debtors 50 68 47 Cash and Bank Balan
Slide 62: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) (In Rs. Cr.) Profit & Loss Account FY17 FY18 H1FY19 Sales Volume: Two Wheelers (Nos.) 666,135 820,121 435,249 Total revenue from operations (net of excise) 7,033 8,965 4,956 Manufacturing and other expenses 4,859 6,157 3,417 Earnings before interest, depreciati
Slide 63: 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
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