Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (November 2022)
78 slides from Eicher Motors's investor presentation, Nov 10, 2022
Slide 1: Regulation 30 intimation to stock exchanges
Novemberr 10, 2022 Online In ntimation/Su ubmission The Secre etary The Seecretary BSE Limitted National Stock Exxchange of Inndia Ltd Phiroze Jeeejeebhoy To owers Exchange Plaza, 5th t Floor, Plot No.C/1, Dalal Streeet G Blocck, Bandra Kurla Complex, Bandra (E) Mumbai‐4 400 001 Mumb bai‐400 051 Sec
Slide 2: Investor Presentation November 2022
November 2022 INVESTOR PRESENTATION November 2022 1
Slide 3: Contents
Contents 1 EICHER MOTORS LIMITED – OVERVIEW 2 ROYAL ENFIELD 3 VE COMMERCIAL VEHICLES LIMITED 4 ESG 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 reporting year
Slide 4: Eicher Motors Limited
Eicher Motors Limited INVESTOR PRESENTATION November 2022 3
Slide 5: Eicher Motors Ltd. (EML) - Group Structure
Eicher Motors Ltd. (EML) - Group Structure Promoter Group Domestic Foreign Institutional Others Institutional Investors Investors 49.21% 30.25% 10.05% 10.49% 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 6: Investor Presentation
INVESTOR PRESENTATION November 2022 5
Slide 7: 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 8: 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 Classic 350 received phenomenal respo
Slide 9: Significant Value Creation for all stakeholders
Significant Value Creation for all stakeholders Market Capitalisation (INR Billions) 168x returns over last 14 years INVESTOR PRESENTATION November 2022 8
Slide 10: Global
Global INVESTOR PRESENTATION November 2022 9
Slide 11: Opportunity – Domestic Market
Opportunity – Domestic Market India to become a US$6.5 trillion economy by 2030 India’s favorable demographics Indian Economy: A shift to a high growth path By 2031, the working age population i.e. 20-59 years is poised to increase by 300bps Source: Economic Survey 2019-20 Rising income Many India’s
Slide 12: Opportunity – Domestic Market
Opportunity – Domestic Market India Opportunity RE Customer Base Under 25 yrs 2 Wheeler: 21M Over 35 yrs 21% 26 - 35 yrs 33% 46% Motorcycles: 13.5 M >125cc: 3.2M Source: Internal- RE INVESTOR PRESENTATION November 2022 11
Slide 13: Established Premium Brand in India with expansive distribution network
Established Premium Brand in India with an expansive premium distribution network 1,083 stores and 1,047 studio stores across ~1,750 cities Dealer Network Store count ▪ Large stores ▪ Studio stores ars 7 ye North 4x in 332 | 358 East 227 | 254 West 199 | 137 City Category wise Distribution* Category
Slide 14: Global mid-size motorcycle market is underserved
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 Developing Motorcycles > Markets 750cc -2% Industry 250-750cc 3% Premium RE is driving upgrade along -2% with premiumisation in India and increasi
Slide 15: Global mid-size motorcycle market: brand, product, network
Global mid-size motorcycle market is underserved and is a huge opportunity 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 gl
Slide 16: One of the Largest Premium Motorcycle Distribution Networks
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 Subsidiary Mexico (Dis) Nepal (Dis) CKD
Slide 17: 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 18: Rapidly growing international network
Rapidly growing international network 880+ global touchpoints with 175 Exclusive stores & 710+ MBOs Developed Markets Developing Markets Multi Multi Exclusive Exclusive Brand Brand Store Store Outlet Outlet North APAC 50 102 1 157 Countries with exclusive stores America ■ Australia* – 1 ■ Mangolia –
Slide 19: Share of revenue from international markets has grown 5x
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 New Retail formats - Studio stores, Shop-in-shop for apparel, and 7 years motorcycle displays to increase customer reach.
Slide 20: Motorcycling
Motorcycling INVESTOR PRESENTATION November 2022 19
Slide 21: 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 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 Scram 411 Himalayan Continental GT 650 Interceptor 650 ▪ Brand’s first ADV Crossover – ▪Purpose-bu
Slide 23: All-new Hunter 350
All-new Hunter 350 Enjoyable engine Premium feel with Accessible, modern, performance with Upright comfortable tripper device, classic and compact distinctive sound, ergonomics for easy digi-analog vehicle proposition better throttle accessibility & instrument cluster with intimidating response, imp
Slide 24: All-new Hunter
All-new Hunter 350 TOTAL REACH EXPOSURES 6.5BN+ 2880+ PRESS OUTLETS INFLUENCERS ENGAGED ENGAGED TOTAL REVIEWS 500+ 120+ 240+ COVER STORIES 17+ “Democratic like jeans, the Hunter 350 is perfect for Hunter 350, with its compact geometry, is a The Hunter certainly meets the expectations of those who wa
Slide 25: All New Scram 411: The versatile ADV Crossover
All New Scram 411: The versatile ADV Crossover Unveiled for global audiences with retail Expanding Royal Enfield Adventure availability in India, as well as roll-out in portfolio, complementing Himalayan ADV international markets - RENA, APAC, Europe, Americas and MEA "The SCRAM is a motorcycle “A p
Slide 26: Best-in-Class Technology Delivering Superior Quality
Best-in-Class Technology Delivering Superior Quality Royal Enfield range VEHICLE of motorcycles is able to address ASSEMBLY ENGINEa unique mix of appeals – ASSEMBLY SURFACE FINISHING from its traditional customer base to urban, aspiration-driven youth ▪ SRK methodology for new products ▪ Automated c
Slide 27: 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 28: 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 29: Make It Yours - A Royal Enfield. Made by you, for you
Make It Yours - A Royal Enfield. Made by you, for you Personalise your motorcycle from Day 1. Make it the way you want from style, safety to comfort ` Personalise your Give it a unique look Cover endless miles motorcycle your way with added comfort Cruise your own way. Get the joy of a From Day 1. p
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 Solutions Business - Financ
Slide 31: Product Portfolio – Apparel
Product Portfolio – Apparel ART OF MOTORCYCLING X NFT SNEAKING OUT 2.0 Introduced the top 10 winning designs from seasons 1 and 2 of #ArtOfMotorcycling as our very first NFTs. The first two wheeler brand ROYAL ENFIELD X SOLE SEARCH in India to launch NFTs, joined the league of global brands like Unv
Slide 32: Brand
Brand INVESTOR PRESENTATION November 2022 31
Slide 33: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION November 2022 32
Slide 34: Global Investors Meet 2022
Global Investors Meet 2022 INVESTOR PRESENTATION November 2022 Click Here to View More 33
Slide 35: Engage Physically... Propagate Digitally
Engage Physically... Propagate Digitally Himalayan Riders Club Of Rider Mania Slideschool One Ride Odyssey Europe Continental GT The Great Himalayan Himalayan 90° South Astral Ladakh Cup - Round 1 Exploration Zanskar The largest, fastest growing Strong global digital On-ground and on-line and the mo
Slide 36: Building a strong digital community
Building a strong digital community Royal Enfield x Royal Enfield x Hunter Launch Royal Enfield x NFT Solesearch Born On Instagram Total Average Total Reach* Engagement Engagement per 103.4 M 4.6 M Brand post UNESCO x 5,699 Rider Mania 2022 Royal Enfield Total Views Engagement 19.4 M Rate^ World Motorcy
Slide 37: Hybrid Engagement Leading to Strong Consumer Equity
Hybrid Engagement Leading to Strong Consumer Equity #1 79% Consideration #1 47% Top of Mind Awareness 22% ahead of our closest competitor 30% ahead of our *Internal Kantar report on Brand Health closest competitor Track - JAS’2022 scores ▪ Among the host of brand health metrics tracked by Royal Enfi
Slide 38: Business Performance
Business Performance INVESTOR PRESENTATION November 2022 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 Business Material Employee Fixed Marketing Top Line Cost Cost Overhead Spend s Selling Price Material Cost control People Cost ▪ Optimized travel ▪ Sharper Digital reset actions: initiatives: Initiatives: resulted in savings marketing ▪ Initiat
Slide 42: Awards and Achievements
Awards and Achievements All-New CLASSIC 350 BEST OF 2021 VIEWER’S CHOICE BIKE MOTORCYCLE OF THE YEAR OF THE YEAR RETRO BIKE OF MODERN CLASSIC BIKE BEST MODERN CLASSIC THE YEAR OF THE YEAR (LIGHTWEIGHT) METEOR 350 RETRO BIKE OF BEST BEGINNER COOLEST MOTORCYCLE OF THE YEAR MOTORCYCLE THE YEAR BEST MOD
Slide 43: RE in Summary
RE in Summary Poised to become the first premium global consumer brand from India Strong Brand Best-in-Class Extensive Non Products Network Motorcycle Solution Processes and systems People Sustainability: ESG INVESTOR PRESENTATION November 2022 42
Slide 44: Investor Presentation
INVESTOR PRESENTATION November 2022 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 November 2022 44
Slide 46: Businesses…Eicher Trucks and Buses, Volvo Trucks & Buses
Businesses…Eicher Trucks and Buses, Volvo Trucks & Buses in India, Drivelines and Components Eicher Trucks VECV Bus Division Engineering Engines & Drivetrain Volvo Trucks Components INVESTOR PRESENTATION November 2022 45
Slide 47: 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 48: India CV industry… Poised for growth
India CV industry… Poised for growth…after 3 years of recession ▪ Growing economy with record tax collections ▪ Focus on import substitution (Aatmanirbhar) & Make in India ▪ Policy support for EV’s & scrappage of old & polluting vehicles ▪ Planned infrastructure investment of ₹145 trillion in next 5
Slide 49: Strong JV… Built on Trust, Mutual Respect & Win-Win
Strong JV… Built on Trust, Mutual Respect & Win-Win 2008-2013 2013-2021 2022 > JV formation and initial Launch of Pro series, Journey Future ready to become customer Synergy projects -oriented organization INVESTOR PRESENTATION November 2022
Slide 50: 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 28.6% 7.5% 25.3% 1.3% FY 2009 H1FY23 FY 2009 H1FY23 Buses Volvo Trucks India* 24.2% 94.6% 5.3% 72.6% FY 2009 H1FY23 FY 2009 H1FY23 *Market share in high end premium segment INVESTOR PRESENT
Slide 51: 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 52: 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 53: Among the Top 3 Indian CV manufacturers
Among the Top 3 Indian CV manufacturer Eicher Skyline Pro Electric Engines, Transmissions, Components Volvo Buses Range Volvo Trucks Range * >4.9T INVESTOR PRESENTATION November 2022
Slide 54: Manufacturing… enhanced with Volvo buses and Industry 4.0 Bhopal plant
Manufacturing… enhanced with Volvo buses and Industry 4.0 Bhopal plant Vehicle Assembly plant - Bhopal Eicher Engineering Components – Unit I & II Truck Plant-Pithampur – Dewas Plant Truck Plant-Bhopal VE Powertrain – Pithampur Industrial Gear Box for Chassis Assembly Line - Bhopal Export (SEZ) – Pi
Slide 55: Electric range… 9m City Bus operating in Chandigarh
Electric range… 9m City Bus operating in Chandigarh Flag off of Eicher Skyline Pro E Electric Buses in Chandigarh By Honorable Governor of Punjab and Haryana and Union Home Minister Shri Amit Shah INVESTOR PRESENTATION November 2022 54
Slide 56: VECV at Prawaas 3.0 Aug’22
VECV at Prawaas 3.0 Aug’22…Shaping the future of Indian Bus Industry Shaping the future of the Indian Bus Industry, resonating the strengths of two great brands one strong organisation INVESTOR PRESENTATION November 2022 55
Slide 57: Launch of Volvo 9600 Coach & Sleeper, Eicher 13.5m Coach
Launch of Volvo 9600 Coach & Sleeper, Eicher 13.5m Coach & Sleeper- New Standards In Inter-city Luxury Bus Travel INVESTOR PRESENTATION November 2022 56
Slide 58: #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 November 2022 57
Slide 59: Leading in Digitization…100% Connected Truck Fleet
Leading in Digitization…100% Connected Truck Fleet Digital Customer Digital Business Digital Enterprise INVESTOR PRESENTATION November 2022 58
Slide 60: Awards and Accolades
Awards and Accolades CV of the Year ICV Cargo Carrier Of The Year awarded to Received Apollo CV Award for LCV- ICV People Mover of the Eicher Pro 2114 XP CNG Year for Skyline Pro 3010 L CNG staff bus Volvo 9400 B8R 13.5m Coach won the Coach Of The Year at Apollo CV Awards # 1 in Dealer Satisfaction
Slide 61: Our Journey… Performing and Transforming
Our Journey… Performing and Transforming Profitable Sustainable Products & Operations Future Ready INVESTOR PRESENTATION November 2022
Slide 62: ESG
ESG INVESTOR PRESENTATION November 2022 61
Slide 63: 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 64: Sustainability Efforts Gather Steam
Sustainability Efforts Gather Steam DJSI Inclusion Sustainability 4.0 Award 2021 In November 2021, Eicher Motors Limited made its debut In December 2021, Royal Enfield (A Unit of Eicher Motors on Dow Jones Sustainability Index (DJSI) 2021 - Emerging Limited) was recognized with the "Challengers Awar
Slide 65: Second Consecutive Year of Listing in DJSI EM Index
Second Consecutive Year of Listing in DJSI EM Index DJSI Scorecard Sustainalytics Scorecard ESG Score Eicher Motors is listed in the DJSI Emerging Markets Index for the 62.0 second year in a row, and has maintained its position among the top 3 automotive sector leaders in India and top 10 globally.
Slide 66: Green Business Operations
Green Business Operations Energy and Emissions Conservation, efficiency, renewable energy, reduced emissions Minimise emission in raw material extraction and Zero production waste to Material Water and Effluent landfill EML Recycled material and Recyclable EML Rainwater Harvesting ZLD, material (19,
Slide 67: 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 68: 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 69: Royal Enfield managed by seasoned professionals
Royal Enfield managed by seasoned professionals Siddhartha Lal B. Govindarajan Mohit Dhar Jayal Managing Director and CEO, CEO – Royal Enfield Mark Wells Yadvinder S. Guleria Chief of Design Chief Brand Officer Chief Commercial Officer EML Sudhakar Simon Warburton Rajeev Sharma Paolo Brovedani Chief
Slide 70: 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 71: VECV Management … Deep experience in Indian & Global CV industry
VECV Management … Deep experience in Indian & Global CV industry INVESTOR PRESENTATION November 2022 70
Slide 72: 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 73: Financials
Financials INVESTOR PRESENTATION November 2022 72
Slide 74: 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 H1FY23 Sales Volume: Two Wheelers (Nos.) 666,135 820,121 822,724 697,582 609,403 595,474 389,483 Total revenue from operations (net of excise) 7,033 8,965
Slide 75: 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 76: 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 77: 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 78: Thank You
Thank You Get Social Royal Enfield Royal Enfield Royal Enfield INVESTOR PRESENTATION November 2022
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