Greaves Cotton Limited · NSE:GREAVESCOT
Greaves Cotton — Investor Day (August 2022)
37 slides from Greaves Cotton's investor day presentation, Aug 25, 2022
Slide 1: Investor presentation cover letter to exchanges
GREAVES SINCE 1859 25th August, 2022 The Manager – Listing The Manager – Listing BSE Limited National Stock Exchange of India Limited BSE Code: 501455 NSE Code: GREAVESCOT Dear Sir/Madam, Sub: Investor Presentation In furtherance to our letter dated 24th August, 2022 and pursuant to Regulation 30 of
Slide 2: Accelerating Growth Through Customer Centricity
ACCELERATING GROWTH THROUGH CUSTOMER CENTRICITY Analyst & Investor Meet 2022 25th August 2022 Analyst & Investor Meet 2022 1
Slide 3: Capital markets day agenda
Capital markets day agenda Time Agenda Presenter 03:00 PM Business strategy Nagesh Basavanhalli (Executive Vice Chairman) 03:20 PM Manufacturing Dr. Arup Basu (Managing Director, GCL) 03:40 PM E-mobility Sanjay Behl (CEO & ED, GEMPL) 04:00 PM Financial overview Dalpat Jain (Group CFO) 04:10 PM Takea
Slide 4: Welcome address & business strategy
Welcome address & business strategy
Slide 5: Megatrends 2020 - 2030
Megatrends 2020 - 2030 In the next decade, global changes will be led by urbanisation & sustainability, driven by e-mobility 90% of world data created in last 2 years 1 SHIFTING ECONOMIC POWER To emerging markets and developing 1 trillion objects connected by 2022 economies, including China E7 econo
Slide 6: Accelerated growth strategy in alignment with the megatrends
Accelerated growth strategy in alignment with the megatrends Growth in Digital Sustainability urbanisation transformation Leading to building integrated operations Leading to higher demand on last mile Leading to higher government, public and management, faster product development and transportation
Slide 7: Diversifying business portfolio driven by customer centricity
Diversifying business portfolio driven by customer centricity for accelerated growth Strengthening product Customer centric Accelerating growth and service portfolio Pre 2017- 2022 & 2017 21 beyond Engines & Spares Engines & Spares Engines + + + E-mobility E-mobility Ampere Bestway MLR Ampere Bestwa
Slide 8: Corporate structure for accelerated growth
Corporate structure for accelerated growth MANUFACTURING MOBILITY Auto Farm, Infra, E-Scooters 3-Wheelers Engines Transportation, Marine RETAIL & SERVICES Multi-Brand Multi-Brand retail format service format Analyst & Investor Meet 2022 7
Slide 9: Sustained investment in clean energy mobility and customer focus
Sustained investment in clean energy mobility and “get closer to the consumer” focus, leap-frogging Greaves’ transformation & growth. Also attracting large international investors Increased share in the A major national brand emerging pay and use driving rapid shift to electric market & individual 2
Slide 10: Building our mega sites as integrated centres-of-excellence
Building our mega sites as integrated centres-of-excellence in manufacturing, application development and R&D, with the ability to double the capacity with limited investment across product lines is fueling growth Catering to diversified customer segments Hospitals Airports Industries from EV to Con
Slide 11: Retail, finance, engineering services and new applications
Retail, finance, engineering services and new applications for accelerating growth Strong EV financing - 15+ Investing in building 3S (Sales, banks & financial Service, Spares) network for institutions, pan India, high 2W & 3W retail, is positioning number of active vehicles Greaves as a multi-brand
Slide 12: E-Mobility: growth strategy
E-Mobility: growth strategy Timely entry and aggressive play in E2W / E3W mobility Extending Identified E-2W Portfolio Expansion Three acquisitions in 3 years 163 years trends before market shift • Acquisition led entry Ampere (100% owned) of trust & reliability to into E-Rick • Agreement for • Acqu
Slide 13: The drivers for accelerated growth
Growth strategy The drivers for accelerated growth EV Segment Organic Inorganic Brand Building Retail Acquisitions Value Unlock Business Diversification 2W 3W Tapping high growth segments Analyst & Investor Meet 2022 12
Slide 14: Committed to growth with sustainability and conservation at the core
Committed to growth with sustainability and conservation at the core ENVIRONMENTAL SOCIAL GOVERNANCE Green Approach ISO 45001 Zero Cases essential part of the company’s culture Certified regarding unfair trade practices, irresponsible advertising and anti-competitive behaviour UN Sustainable Develop
Slide 15: Board of directors
Board of directors Leaders with decades of experience in manufacturing, business strategy, product life cycle, divestment & acquisition, business transformation, and more MS. SREE PATEL Independent Director MR. KARAN THAPAR MR. NAGESH BASAVANHALLI DR. ARUP BASU MS. SREE PATEL Chairman of the Board E
Slide 16: Manufacturing business
Manufacturing business eC“;
Slide 17: Megatrends and economics influencing transportation preferences
Megatrends and economics influencing transportation preferences 4400 BCE 1900 BCE 1817 1886 1895 Analyst & Investor Meet 2022 16
Slide 18: Cleaner energy solutions representing profit pools of the future
Cleaner energy solutions representing profit pools of the future Customer-Centricity at the Core Farm Industrial Infrastructure Transportation -------------------------------------------------------------------------------------------------------------------------------------------------------------
Slide 19: Technology and digitization driving ecosystem disruption
Technology and digitization driving ecosystem disruption Single Cylinder- Mono and Bi Fuel Software wrapped Single Cylinder- Diesel 3W Diesel 4W CNG engine in Metal ---------------------------------------------------------------------------------------------------------------------------------------
Slide 20: Expanding portfolio of Solutions
Expanding portfolio of “Solutions” -------------------------------------------------------------------------- Power Solutions Farming Solutions ------------------------------------------------------------------------------------------------------------------------ -----------------------------------
Slide 21: E-mobility business
E-mobility business ann | eee eed)
Slide 22: E-mobility industry outlook
E-mobility industry outlook Total Electric 2-wheeler market with penetration%- FY2018-23 800000 5.00% • The total Escooters market is expected to achieve 4-5% Total E2W 4-5% 700000 (units) penetration in FY23 600000 4.00% Million Units 500000 • Ecommerce growth is expected to drive growth of City 3.
Slide 23: GEM is creating mass-market brands
GEM is creating mass-market brands Solving the last mile mobility needs of a large section of population 1% Rich 13% Middle Class 30% GEM’s target Aspirers customer 56% Bottom of the Pyramid # No. of Households GEM’s Value Proposition Parts and Service assurance 80%+ operating cost savings Affordabl
Slide 24: Greaves Electric Mobility portfolio
Greaves Electric Mobility portfolio • Sales volume have been scaling up from 10000 • Entered the last mile affordable units/quarter to 10000 E2W two-wheeler personal mobility units/month EV Segment segment with the acquisition of • Plant capacity of ~2.5 lakh Ampere in 2018 units from recently commi
Slide 25: Greaves Electric Mobility continues strong growth momentum
Greaves Electric Mobility continues strong growth momentum E2W + E3W Volumes E2W + E3W Consolidated Revenues 70000 140%600 Yearly Quarterly 62,531 522 251% 281.2 60000 129% 120%500 Y-o-Y 237 50000 100% 400 40000 80% 181 31% 300 Q-o-Q 29,577 30000 27,310 60% 18,536 47% 200 176 89 20000 14,329 40% 29%
Slide 26: Greaves Electric Mobility: new launches
Greaves Electric Mobility : 5 new launches Continous improvement in vehicle platforms components, product engineering, features & connectivity 2W 3W Next COMING Next COMING Pre - 18-24 SOON New model 18-24 SOON Power ePro 1.0 ePro 2.0 Next Gen – L5N FY23 Pre FY23 months months Magnus EX Zeal CA Reo
Slide 27: Financial overview
Financial overview a
Slide 28: Financial performance
Financial performance Greaves Consolidated Result Q1 FY23 Segment Revenues (INR Cr.) Revenue EBITDA PAT 1% 660 Engines Aftermarket 43% 38% 229 E- Mobility 38 16 Other -17 -22 19% Q1 FY22 Q1 FY23 Greaves Standalone Result Q1 FY22 Segment Revenues 0.00% 6% 374 Engines 214 27% Aftermarket 36 E-Mobility
Slide 29: Financial snapshot
Financial snapshot Particulars (Consolidated) Q1 Growth (%) Q4 Growth (%) (Rs. Cr.) FY23 FY22 Y-o-Y FY22 Q-o-Q Income from Operations 660 229 188% 621 6% RMC (%) 73.8% 71.4% 73.7% Employee Cost 46 42 42 Other Expenses 88 41 81 EBITDA 38 (17) NM 41 (5%) EBITDA Margin (%) 5.8% (7.4%) 6.5% PAT 16 (22)
Slide 30: Segment volume
Segment volume Q1 Growth (%) Q4 Growth (%) Volumes (Units) FY23 FY22 Y-o-Y FY22 Q-o-Q Auto Engines 16,112 9,426 71% 15,068 7% Non-Auto Engines 10,110 9,447 7% 10,401 (3%) Engines 26,222 18,873 39% 25,469 3% Genset 1,428 806 77% 1,254 14% Light Equipment 7,851 6,630 18% 10,748 (27%) Non-Auto Products
Slide 31: Balance sheet and cash flow trend
Balance sheet and cash flow trend Strong Working Capital Management 117 98 102 27 Mar -21 Jun-21 Mar -22 Jun-22 • Robust cash generation to fund expansion • Ranipet plant and experience Centre funded completely through internal accruals • Capital infusion from Abdul Latif Jameel will speed up the ne
Slide 32: Fund utilization to support Greaves Electric Mobility
Fund utilization to support Greaves Electric Mobility for the next phase of growth Building the customer facing brand to achieve customer resonance and support demand creation Developing new products to better serve the mobility needs of the market Building capacity and expanding of capabilities, se
Slide 33: Takeaways & concluding remarks
Takeaways & concluding remarks
Slide 34: Takeaways
Takeaways Greaves is driving growth in mobility • Higher penetration in the B2C individual ownership segment, as well as the pay & use segment • Building long term partnerships with e-commerce & logistics players to drive 3-wheeler growth • EV financing & multi-brand retailing, in addition to 3S dea
Slide 35: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Greaves Cotton (“Greaves” or the Company) future business developments an
Slide 36: Thank You
THANK YOU REGISTERED OFFICE For further information, please contact Greaves Cotton Limited Priti Tiwari, Anvita Raghuram / Bijay Sharma Unit No. 1A, 5th Floor, Tower 3 Equinox Business Park, LBS Marg, Kurla West, Mumbai 400070. Asst. Manager – Marketing & Corporate Communications Churchgate Partners
Slide 37: Entering the next phase of growth
Entering the next phase of growth • Abdul Latif Jameel has invested Rs. 1,171 crores in Greaves Electric Mobility for ESOP 3% 35.8% stake • The deal is one of the largest largest growth capital investments in the Indian E2W / E3W sector to date Abdul Lateef • Greaves Electric Mobility has an option