Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (September 2021)
58 slides from Eicher Motors's investor presentation, Sep 13, 2021
Slide 1: Regulation 30 SEBI intimation to exchanges
September 13, 2021 Online intimation/submission The Secretary The Secretary BSE Limited National Stock Exchange of India Limited 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 Cod
Slide 2: Investor Presentation September 2021
5/20/2020 Investor Presentation a September 2021
Slide 3: Contents
Contents 1 EICHER MOTORS LIMITED – OVERVIEW 2 ROYAL ENFIELD 3 VE COMMERCIAL VEHICLES LIMITED 4 ESG UPDATE - Environment | Social | Governance INVESTOR PRESENTATION September 2021 2
Slide 4: Eicher Motors Limited Overview
Eicher Motors Limited OVERVIEW INVESTOR PRESENTATION September 2021 3
Slide 5: Eicher Motors Ltd. (EML) - Group Structure
Eicher Motors Ltd. (EML) - Group Structure Promoter Group Domestic Foreign Institutional Others Institutional Investors Investors 49.22% 28.83% 9.49% 12.46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eicher Motors Limited (EML) Volvo Group Business Unit 45.6% 54.4% Royal Enfield (RE) VE Commercial
Slide 6: Investor Presentation
INVESTOR PRESENTATION September 2021 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 250 – 750cc, mid-segment motorcycles. With ~90% market share in the Indian mid-size segment, we have rapidly grown our presence across t
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 ~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 9: Unprecedented Value Creation for all stakeholders
Unprecedented Value Creation for all stakeholders Market Capitalisation (INR Billions) 113x returns over last 13 years Source: Capital IQ Excluding dividends INVESTOR PRESENTATION September 2021 8
Slide 10: Global
Global INVESTOR PRESENTATION September 2021 9
Slide 11: Strongly established premium brand with expansive distribution network
Strongly established Premium Brand in India with an expansive premium distribution network 1,033 stores and 1,038 studio stores across ~1,750 cities Dealer Network Store count ▪ Large stores rs ▪ Studio stores yea n5 4x i North 328 | 362 East 186 | 228 West City Category wise Distribution 210 | 185
Slide 12: 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 Most Developing Motorcycles > 750cc Industries Markets -2% Industry 250-750cc 3% Premium RE is driving upgrade along -2% Mid with premiumisation i
Slide 13: Established brand with profitable business model
Established brand with profitable business model backed by premium quality product BRAND PRODUCT 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 and desirable brand
Slide 14: 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 framework in place to access to global product develop best-in-class development capabilities and ecosystem products in an World-class optimal timeframe facilit
Slide 15: Rapidly growing international network
Rapidly growing international network 140 Exclusive stores opened in less than 6 years; 650+ MBO Developed Markets Developing Markets Multi Multi Exclusive Exclusive Brand Brand Store Store Outlet Outlet North APAC 48 82 1 141 America Countries with exclusive stores ▪ Australia* – 1 ▪ New Zealand* –
Slide 16: Share of revenue from international markets has grown 3x
Share of revenue from international markets has grown 3x over the last 5 years. Network Expansion and Touch Points New Retail formats - Studio International Business – stores, Shop-in-shop for Stellar Financial Performance over last 5 years apparel, and motorcycle displays to increase customer reach
Slide 17: Motorcycling
Motorcycling INVESTOR PRESENTATION September 2021 16
Slide 18: 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 Continental Interceptor Bullet Classic Meteor 350 Himalayan GT 650 650 ▪ Oldest brand ▪ Sen
Slide 19: 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 20: Best-in-Class Technology Delivering Superior Quality
Best-in-Class Technology Delivering Superior Quality VEHICLE ASSEMBLY ENGINE ASSEMBLY SURFACE FINISHING ▪ 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 pain
Slide 21: The Customer at the centre
The Customer at the centre SALES SERVICE PRODUCT Field Failure – Defects per Hundred Bike 5X R edu ctio n Store Layout Service on Wheels Reduction in Defects ▪ Process excellence ▪ First time right ▪ Adoption of “Shoki Ryudo Kanri (SRK)” process ▪ Brand retail identity ▪ Extended warranty and AMC fo
Slide 22: Variety of initiatives to enhance customer experience
Variety of initiatives to enhance customer experience Studio Stores Royal Enfield Vintage Make It Yours - a unique Unique compact store format Transparent sale and purchase of motorcycle personalization with 3S store offerings pre-owned RE motorcycles initiative Royal Enfield Garage RE App Royal Enf
Slide 23: 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 Road Side Spares Assistance Annual Maintenance Extended Contract Warranty Accessories Apparel Solutions Business - Financi
Slide 24: Brand
Brand INVESTOR PRESENTATION September 2021 23
Slide 25: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION September 2021 24
Slide 26: Engage Physically... Propagate Digitally
Engage Physically... Propagate Digitally Himalayan Riders Club Rider Mania Slideschool Odyssey Of Europe The largest, fastest On-ground and growing and the Strong global digital on-line communities most engaged online ‘Digital First’ community with very together make a motorcycle brand approach high
Slide 27: Building a strong digital community
Building a strong digital community #TimelessClassic Meteor Watch Day #RESlideSchool #BuildYourOwnLegend Total Average * Total Reach Engagement per Engagement 717M Brand post 69M 15,000+ Engagement Total Views Rate^ Classic x GoPro 282M 9.6% (Significantly above industry average) World Plastic Bag f
Slide 28: Hybrid Engagement Leading to Strong Consumer Equity
Hybrid Engagement Leading to Strong Consumer Equity #1 72% Consideration #1 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 of brand health metrics trac
Slide 29: Business Performance
Business Performance INVESTOR PRESENTATION September 2021 28
Slide 30: Consistent Delivery leading to strong cash accruals
Consistent Delivery leading to strong cash accruals All figures are in Rs. Crs unless specified Total Revenue EBITDA Total revenue from operations (net of excise duty) Profit After Tax Net Cash Net Cash = Cash and cash equivalent – Total debt Note: PAT for FY18 and FY19 includes an impairment loss o
Slide 31: Strong performance in Q1 '22 amidst pandemic
Strong performance in Q1 ‘22 amidst pandemic All figures are in Rs. Crs unless specified Sales Volume* Market Share^ (India) Total Revenue* (in In Thousands) Thousand 116% 148% EBITDA and Margins* Profit After Tax* 17.5% 2,125% 0.2% ^ Market share in above 125cc segment INVESTOR PRESENTATION Source
Slide 32: Steps 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 Acute shortages of electronic component suppliers components (ICs, to ensure supplies by microprocessors, etc.,) globally advance scheduling
Slide 33: 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 Overheads Spend Selling Price Material Cost People Cost ▪ Restricted travel ▪ Sharper Digital reset actions: control initiatives: Initiatives: & training marketing ▪ Initiated quarte
Slide 34: Awards and Achievements
Awards and Achievements Meteor 350 won the ‘Best modern classic Interceptor 650 Won MCN’s Best Retro Bike over 250cc’ Award at the Thailand Bike of of the Year Award (UK), for the second the Year Awards 2021 consecutive year. *Source: As per MCIA data from January 2020 to December 2020 INVESTOR PRES
Slide 35: 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 September 2021 34
Slide 36: Investor Presentation
INVESTOR PRESENTATION September 2021 35
Slide 37: What drives us….Vision & Values
What drives us….Vision & Values Respect To be recognised as Fair and Ethical the industry leader driving modernization Excellence in commercial transportation in Customer Centric India and the Passion developing world INVESTOR PRESENTATION September 2021 36
Slide 38: Businesses…Eicher Trucks and Buses, Volvo Trucks & Buses
Businesses…Eicher Trucks and Buses, Volvo Trucks & Buses in India, Drivelines and Components Eicher Trucks Eicher Buses Volvo Buses Engines & Drivetrain Engineering Components Volvo Trucks INVESTOR PRESENTATION September 2021 37
Slide 39: 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 ▪ Leadership in product technology segments ▪ Well defined processes & controls ▪ Frugal engineering & operations ▪ Brand image ▪ After sales infrastructure ▪ Cost effective operations VE
Slide 40: VECV JV Capability and Market Position strengthened over 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 seri
Slide 41: Strengthened market share in all segments
Strengthened market share in all segments through Driving Modernization Light & Medium Duty Trucks Heavy Duty Trucks 30.1% 6.9% 25.1% 1.3% FY 2009 FY 2021 FY 2009 FY 2021 Buses 19.7% Volvo Trucks India* 84.3% 5.3% 73.4% FY 2009 FY 2021 FY 2009 FY 2021 *Market share in high end premium segment INVEST
Slide 42: 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) * * EBITDA^ and Margin Profit After Tax EBITDA – Earning Before Interest ,Tax, Depreciation and Amortisation ^For the purpose of EBITDA comp
Slide 43: Eicher BSVI Product Portfolio…Renewed range
Eicher BSVI Product Portfolio…Renewed range. Broad application segment coverage Sub 5T – 16T ANGE 4.9T to 16T Haulage LMD R 2.8CuM to 6.5CuM Tippers 18.5T to 55T NGE 18.5T to 47.5T Haulage HD RA 7 CuM to 32 CuM Tippers/ Tip Trailers 39.5T to 55T Tractor Pro 6019T Pro 6028T/TM Trailers Pro 6035T 12 –
Slide 44: VECV Bus Division…Shaping the future of Indian Bus Industry
VECV Bus Division…Shaping the future of Indian Bus Industry Volvo Buses + Eicher Buses Distinct Comprehensive Offer New Markets & E-Mobility Eicher & Volvo Brands Transferred Volvo Buses India operations and people into VECV in 2020 to create an industry leader INVESTOR PRESENTATION September 2021 4
Slide 45: Electric range… 9 m bus ready for commercialization
Electric range… 9 m bus for city application ready for commercialization INVESTOR PRESENTATION September 2021 44
Slide 46: Manufacturing… enhanced with Volvo buses and Industry 4.0
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 47: Strengthening distribution and service reach
Strengthening distribution and service reach….#1 in Dealer Satisfaction #1 in Dealer Satisfaction* Focus on East 522 service locations INVESTOR PRESENTATION September 2021 *Federation of Automobile Dealers Associations (FADA) Survey 2021 46
Slide 48: Leading in Digitization
Leading in Digitization…driven by 100% connected vehicle fleet Digital Digital Digital Customer Business Enterprise INVESTOR PRESENTATION September 2021 47
Slide 49: ESG
ESG INVESTOR PRESENTATION September 2021 48
Slide 50: 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 ▪ Risk management ▪ Eliminate utilizati
Slide 51: Greener Business Operations
Greener Business Operations Energy and Emissions Conservation, efficiency, renewable energy, reduced emissions Minimise emission in raw material extraction and Reduce production amount of waste to Material Water and Effluent landfill EML Recycled material and EML Rainwater Harvesting ZLD, SERVICES R
Slide 52: Passion with Responsibility
Passion with Responsibility India USA Australia Committed to drive an active agenda Committed to support the affected towards the sustainability and the communities during the pandemic environment at large ▪ India: INR 60 Crs were spent during COVID to support ▪ Village development program, rural el
Slide 53: EML Board: Leaders with proven track record
EML Board : Leaders with proven track record S Sandilya Siddhartha Lal B. Govindarajan Chairman- Non-Executive Managing Director and Executive Director - Royal and Independent Director CEO, EML Enfield, Whole Time Director Vinod K. Aggarwal Inder Mohan Singh Manvi Sinha Non-Executive Director Indepe
Slide 54: Royal Enfield managed by seasoned professionals
Royal Enfield managed by seasoned professionals Siddhartha Lal B. Govindarajan Kaleeswaran Lalit Malik Managing Director and Executive Director - Royal Arunachalam Chief Commercial Officer CEO, EML Enfield, Whole Time Chief Financial Officer Director Mark Wells Rajeev Sharma Manhar Kapoor Sudhakar B
Slide 55: VECV Board…Proven track record of value delivery
VECV Board…Proven track record of value delivery Siddhartha Lal Jan Gurander Joachim Rosenberg Vinod Aggarwal Chairman of the Board Deputy CEO Volvo Group EVP Volvo Group Managing Director & MD Eicher Motors Ltd President Volvo Energy CEO VECV Philippe Divry Raul Rai Lila Poonawalla Inder Mohan Sing
Slide 56: VECV Management
VECV Management … Deep experience in Indian & Global CV industry Strategy, Brand & Finance, Legal & Anders Hager BK Communication Audit CFO Bindiganavile SVP Vinod Aggarwal Businesses Processes Rajesh Mishra MD & CEO and IT CDO Human Resources Volvo Trucks Eicher Trucks and Buses, VEPT Bus Division
Slide 57: 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 58: Thank You
Thank You Get Social Royal Enfield Royal Enfield VE Commercial Vehicles INVESTOR PRESENTATION September 2021 57
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