Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Q2 FY2024-25 Earnings Presentation
72 slides from Eicher Motors's earnings presentation, Nov 13, 2024
Slide 1: Regulation 30 Investor Presentation Filing Letter
November 13, 2024 Online intimation/submission The Secretary The Secretary BSE Limited National Stock Exchange of India Ltd 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 Code: 505200 Sym
Slide 2: Q2 FY 2024-25 Investor Presentation
EICHER MOTORS LTD Q2 FY 2024-25 INVESTOR PRESENTATION November,2024
Slide 3: Safe Harbour Statement
SAFE HARBOUR STATEMENT All statements included or incorporated by reference in this presentation, other than statements or characterisations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and projections about ou
Slide 4: Contents
CONTENTS 1. EML Overview 2. Royal Enfield ● Company Overview ● India Business ● International Business ● Non-MC Business ● Operations Overview ● Brand ● Sustainability 3. JV UPDATE - VECV 4. Financial Review INVESTOR PRESENTATION November 2024
Slide 5: Group Structure - Eicher Motors Ltd
GROUP STRUCTURE - EICHER MOTORS LTD Foreign Institutional Domestic Promoter Group Investors Institutional Investors Others 49.1% 28.5% 13.8% 8.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eicher Motors Limited (EML) Joint Venture Business Unit 45.6% 54.4% Royal Enfield (RE) RENA (Royal Royal Enfield
Slide 6: EML Board
EML BOARD Leaders with a proven track record S Sandilya Siddhartha Lal B. Govindarajan Vinod K. Aggarwal Chairman, EML Managing Director and CEO, EML CEO - Royal Enfield, Whole Time Non-Executive Director Director Inder Mohan Singh Manvi Sinha S Madhavan Tejpreet Chopra Independent Director Independe
Slide 7: Royal Enfield
ROYAL ENFIELD INVESTOR PRESENTATION 6 November 2024
Slide 8: Our Purpose
OUR PURPOSE Royal Enfield’s philosophy of Pure Motorcycling has always been about a constant search for balance between people, machine and terrain. Today, in a world out of sync with itself, we must extend this quest to our business – so that we can restore equilibrium between commercial objectives,
Slide 9: Rebalance: Long Term Strategic Vision
REBALANCE: LONG TERM STRATEGIC VISION 1. ICE and EV 3. Brand Led CX Brand led Customer Experience Balance EV as a game changer versus transactional focus along with ICE products 2. Growth Focus 4. Sustainability Balance Social & Commercial Balance Profit & Profitability objectives CREATE AN AGILE, RES
Slide 10: Strong Management Team
STRONG MANAGEMENT TEAM Siddhartha Lal B. Govindarajan Mark Wells Mohit Dhar Jayal Simon Warburton Mahesh Tripathi Managing Director & CEO, EML CEO – Royal Enfield Chief of Design Chief Brand Officer Chief Program Manager Chief Operations Officer Yadvinder S. Guleria Vidhya Srinivasan Rajeev Sharma Sudh
Slide 11: Expansive Product Portfolio
EXPANSIVE PRODUCT PORTFOLIO Engine Platform Heritage Cruiser Roadster Scrambler Adventure Retro Sport P Platform 650cc | Twin cylinder Super Meteor 650 Interceptor INT650 Continental GT650 Classic 650 Bear 650 Air-oil cooled 47 PS | 52.4 N-m Shotgun 650 K (Sherpa) Platform 450cc | Single cylinder Li
Slide 12: India Business
. INDIA BUSINESS i
Slide 13: Share of Mid-Size in Domestic Motorcycle Market Growing
SHARE OF MID-SIZE (250-750cc) IN THE DOMESTIC MOTORCYCLE MARKET GROWING 7.5% INVESTOR PRESENTATION 12 November 2024
Slide 14: Royal Enfield Leads the Mid-Size Industry in India
ROYAL ENFIELD LEADS THE MID-SIZE INDUSTRY IN INDIA Himalayan 450 | Shotgun 650 Transition of all 350 models to J Platform Launch of the twins Hunter 350 INT 650 / GT 650 Super Meteor 650 Launch of 411 New Classic 350 Himalayan OG Scram 411 Continental GT 535 Guerrilla 450 Meteor 350 New classic 350
Slide 15: Gaining Market Share in Domestic Motorcycles
GAINING MARKET SHARE IN DOMESTIC MOTORCYCLES 27.0% 6.4% 12.6% 2.0% INVESTOR PRESENTATION 14 November 2024
Slide 16: Expansive Premium Dealership Network
EXPANSIVE PREMIUM DEALERSHIP NETWORK Royal Enfield currently ranks #2 in the FADA Dealer Satisfaction Survey 2024 INVESTOR PRESENTATION 15 November 2024
Slide 17: International Business
INTERNATIONAL BUSINESS
Slide 18: Royal Enfield's Global Footprint
ROYAL ENFIELD’s GLOBAL FOOTPRINT Europe Subsidiary Canada Subsidiary UK Subsidiary North America Tech Center Subsidiary Nepal (CKD) (Dis) Brazil CKD Bangladesh CKD & Brazil Subsidiary Thailand CKD Colombia (CKD) & Thailand Subsidiary India Tech Center Subsidiaries - 06 Manufacturing CKD units - 06 T
Slide 19: Global Mid-Size Market Is Underserved & a Huge Opportunity
GLOBAL MID-SIZE MARKET IS UNDERSERVED & IS A HUGE OPPORTUNITY Americas Market Share^ APAC Market Share EMEA Market Share 8% 9% 9% ● Launch of Tours & Rentals, Riders Club of Europe Membership crossed 31,250. ● RE is the top 4 mid-weight motorcycle brands in many countries around the world. ^Reflects
Slide 20: Rapidly Growing International Network
RAPIDLY GROWING INTERNATIONAL NETWORK 1,085+ premium global touchpoints Subsidiary - USA, Brazil Technology Centers – UK Subsidiary : Thailand Assembly Unit – Argentina, Colombia, Brazil Subsidiary – UK Assembly Unit – Thailand Exclusive Multi Brand Exclusive Multi Brand Exclusive Multi Brand Store
Slide 21: Revenue from International Business Growing
REVENUE FROM INTERNATIONAL BUSINESS GROWING International Business – Stellar Financial Performance over last 8 years First Slide school in APAC launched in Thailand Shotgun Launched in Japan | Korea | Philippines Himalayan 450 launched in Thailand | Indonesia | Malaysia | Americas INVESTOR PRESENTAT
Slide 22: Widening Reach in the Non-Motorcycle Business
WIDENING REACH IN THE NON-MOTORCYCLE BUSINESS Rally Kit INVESTOR PRESENTATION 21 November 2024
Slide 23: Spares and Service
SPARES AND SERVICE Royal Enfield Service Spares - 6 new product introduced No.1 After Sales Score in RE Essentials - FADA SURVEY, 2023 INVESTOR PRESENTATION 22 November 2024
Slide 24: Genuine Motorcycle Accessories
GENUINE MOTORCYCLE ACCESSORIES Genuine STYLE ➢ Colours Motorcycle ➢ Mirrors Accessories ➢ Oil cap filters COMFORT ➢ Windfield ➢ Panniers ➢ Seats ➢ Bactrest ➢ Footpegs PROTECTION ➢ Engine guard ➢ Sump guard ➢ Covers INVESTOR PRESENTATION 23 November 2024
Slide 25: Apparel
APPAREL 24
Slide 26: Exclusive Apparel Brand Store
EXCLUSIVE APPAREL BRAND STORE Royal Enfield marked a milestone in Pune with the launch of its exclusive apparel store at Amanora Mall, enhancing options for the motorcycling community. The store offers a range of riding jackets, helmets, and a diverse collection of lifestyle apparel for men and women
Slide 27: Apparel Announcements
APPAREL ANNOUNCEMENTS Royal Enfield Launches Royal Enfield Launches Women’s Wear Announcement Crossroader Riding Jacket Regional T Shirts Royal Enfield has introduced the Crossroader Royal Enfield has launched a new range of Royal Enfield unveiled its Regional T-Shirt jacket in India, expanding its ridin
Slide 28: Operations Overview
OPERATIONS OVERVIEW
Slide 29: Production Capacity
PRODUCTION CAPACITY THIRUVOTTIYUR ORAGADAM VALLAM No Assembly operations; Plating & Auto buffing 600,000 600,000 motorcycles per annum motorcycles per annum capacity capacity INVESTOR PRESENTATION 28 November 2024
Slide 30: Building Global Capabilities for Future
BUILDING GLOBAL CAPABILITIES FOR FUTURE UK CHENNAI ▪ UK Tech Centre at Bruntingthorpe to be a hub for the ▪ The Chennai tech centre has the engineering and design product development and research activities, driving the teams working under one roof and houses state-of-the-art mid-range motorcycle pl
Slide 31: EML - Stark Future Partnership
EML - STARK FUTURE PARTNERSHIP 01 Common tenets of long term vision 02 Deep understanding of EVs and connected - tech Technical Collaboration 03 Agreement - potential for joint development and sourcing 04 World class team - Faster product development Sourcing relationships 05 Sourcing relationships
Slide 32: Brand
BRAND
Slide 33: Guerrilla 450 Launch
GUERRILLA 450 LAUNCH Royal Enfield launched the all=new Guerrilla 450 in Barcelona, Spain with 140+ global attendees, garnering a reach of 4Bn. The motorcycle continues to draw attention to its neo-retro Design, and satisfactory engine performance, making it a solid contender in its segment. INVESTOR
Slide 34: Classic 350 Launch
CLASSIC 350 LAUNCH Royal Enfield launched the Classic 350, with an on-ground event in Mumbai followed by a price announcement. The Classic 350 launch showcased its legacy with a star-studded preview featuring icons like Milind Soman and Gul Panag, along with industry veterans. An exclusive partnershi
Slide 35: Royal Enfield at EICMA 2024
ROYAL ENFIELD AT EICMA 2024 At EICMA 2024, Royal Enfield took center stage with the highly anticipated launch of the Bear 650, and global showcase and Europe launch of Classic 650, and global unveil of Flying Flea C6 and S7. Our pavilion stood as a tribute to motorcycling passion, featuring an inspir
Slide 36: Flying Flea Launch
FLYING FLEA LAUNCH A new chapter in Royal Enfield’s 123-year journey of evolution. Global unveil of the first-ever electric brand “The Flying Flea’ - FF C6 & FF S6. Generated a reach potential reach of 737 M with 116 media and 217 social exposures and 10 electronic clips INVESTOR PRESENTATION November
Slide 37: Bear 650 First Global Ride and Price Unveil
BEAR 650 FIRST GLOBAL RIDE AND PRICE UNVEIL Based on the Interceptor, and inspired by Eddie Mulder historic win at the 1960 Big Bear Run; prices unveiled at EICMA post an embargoed media ride in LA. The Bear 650 is a symbol of the brand’s stylish ruggedness. Generated a reach potential reach of 606
Slide 38: Classic 650 Global Media Ride and Showcase
CLASSIC 650 GLOBAL MEDIA RIDE AND SHOWCASE The purest form of Royal Enfield’s DNA, craftsmanship with double the charm. Global showcase of the much-loved and anticipated masterpiece. Generated a reach potential reach of 327 M with 53 media and 88 social exposures. INVESTOR PRESENTATION November 2024
Slide 39: Brand Partnerships
BRAND PARTNERSHIPS Blue Tokai x RE Meteor 350 Royal Enfield x C.L.A.W collaboration Following the Uncover Coffee ride from 19-21 Royal Enfield has partnered with CLAW, a team January 2023, which marked the beginning of of Special Forces veterans and multidisciplinary Royal Enfield's partnership with Bl
Slide 40: Brand Announcements
BRAND ANNOUNCEMENTS Royal Enfield Launches Himalayan 450 Wire-spoked Factory Custom Program Borderless Warranty Program Tubeless Wheels Announcement Royal Enfield has introduced the 'Borderless Royal Enfield has introduced a new factory Royal Enfield Himalayan 450 customers can Warranty Program,' extend
Slide 41: Brand Announcements
BRAND ANNOUNCEMENTS Royal Enfield Art of Bullet 350 Battalion Black GT Cup 2024 Round 1 Motorcycling Season 4 Edition Following the success of three seasons of the Round 1 of the fourth edition of the Royal The Royal Enfield Bullet, known for its iconic Art of Motorcycling, Royal Enfield launched Enfiel
Slide 42: Rides and Community
RIDES AND COMMUNITY Himalayan 2 Years of Hunter 350 North Rajasthan and One Ride 13th Edition Odyssey 2024 Pan India ‘Hunter Day’ Ride Araku Valley The largest, fastest growing and the most engaged online motorcycle brand community in the world. On-ground and on-line communities come together to mak
Slide 43: Rides and Community
RIDES AND COMMUNITY Changthang 2024 Uncover North East Tranquil Tawang + Tides The Great Himalayan 2024 and Trail Exploration The largest, fastest growing and the most engaged online motorcycle brand community in the world. On-ground and on-line communities come together to make a vibrant and eager
Slide 44: Digitally Enabled Customer Experience
DIGITALLY ENABLED CUSTOMER EXPERIENCE RE App - 3D configurator Vehicle Health Report - motorcycle guide for service RE Mechanic App & experience REApp INVESTOR PRESENTATION 43 November 2024
Slide 45: Motoverse Event Promotion
Slide 46: Leading Premium Motorcycle Brand
LEADING PREMIUM MOTORCYCLE BRAND #1 84% Consideration Culture Community Driven Builder #1 52% Top of Mind Awareness SHARE OF VOICE* NET SENTIMENT 47.3% 27 percentage 92.8% 34 percentage points points ahead of our ahead of our closest closest competitor competitor ● Our Top of Mind Awareness (first br
Slide 47: 11.6 Million Social Media Community
11.6 MILLION ONE OF THE WORLD’s STRONGEST FULLY ORGANIC ❏ ❏ ❏ 158K - Average Engagement per Brand post 169M - Total Engagement 326M - Total Reach SOCIAL MEDIA COMMUNITY INSTAGRAM LINKEDIN YOUTUBE FACEBOOK TWITTER INVESTOR PRESENTATION 46 November 2024
Slide 48: Sustainability
Ay TET SUSTAINABIC
Slide 49: Sustainability Focus
SUSTAINABILITY FOCUS Environmental ▪ Improve water positivity 80% targeted ( Scope 1 & 2) ▪ Commitments towards zero liquid discharge 01 emission intensity ▪ Eliminate utilisation of single use plastic reduction per motorcycle by ▪ Focus on increasing share of renewable energy FY 29-30*. ▪ Reducing
Slide 50: Social Mission x Royal Enfield
SOCIAL MISSION x ROYAL ENFIELD GREEN HUB HIMALAYAN KNOT GREEN PITSTOP ❏ Green Hub fellowship in ❏ Eri & Cotton Apparel production ❏ CAMP KHARU LAUNCH - progress with 20 fellows initiated. 8 & 9th of June 24. onboarded. ❏ Stock preparation for Ziro ❏ Introduction walkthrough ❏ Grants for conservation
Slide 51: Among the Industry Leaders in Sustainability Practices
AMONG THE INDUSTRY LEADERS IN SUSTAINABILITY PRACTICES – EML is member of S&P Global LargeMidCap ESG Index – Among Top 3 Automotive ESG leaders from India; Top 20%ile of Global Automakers in Corporate Sustainability Assessment. A 13.2 Low risk Among the top 10 Auto Rank #8 out of 90 in companies glo
Slide 52: Volvo-Eicher Commercial Vehicles
VOLVO-EICHER COMMERCIAL VEHICLES
Slide 53: 15 Years of Driving Modernisation
15 YEARS OF DRIVING MODERNISATION Leveraging the best of both worlds Respect Fair and Ethical ▪ Leadership in Light & Medium ▪ Global expertise Excellence Duty segments ▪ Leadership in product technology ▪ Frugal engineering & operations Customer Centric ▪ Well defined processes and ▪ After sales inf
Slide 54: VECV Board
VECV BOARD Leaders with proven track record Siddhartha Lal Sofia Helena Frandberg Joachim Rosenberg Vinod K. Aggarwal Chairman of the Board Chairperson - VE Commercial EVP and Executive Board Member, Managing Director & CEO VECV MD Eicher Motors Ltd Vehicles Ltd. Volvo Group Chairman of the Board, UD
Slide 55: Q2 & H1 FY25 - Performance Highlights
Q2 & H1FY 25 - PERFORMANCE HIGHLIGHTS ● Q2 FY 25 Highest ever Q2 and H1 for VECV. Eicher #1 in LMD (Light & Medium Duty) market share ● Highest ever second quarter sales of 20,774 units exceeding previous record of 19,551 units in Q2-FY’24 ● #1 in LMD Trucks – Q2 sales of 9,565 units ( FY24 Q2 – 9,5
Slide 56: Modernized Product Range
MODERNIZED PRODUCT RANGE Premium & Value segments with Electric, Natural Gas and Diesel Offerings INVESTOR PRESENTATION 55 November 2024
Slide 57: Prawaas 4.0 - Eicher & Volvo Buses
Prawaas 4.0-Eicher & Volvo Buses at India’s Premier Bus Show ➢ Showcased Volvo 9600 coach with refreshed interiors, Eicher electric 13.5 m intercity coach and Eicher Skyline Pro School Bus with AMT. ➢ Bus segment unique telematics solution- My Eicher well appreciated by customers. ➢ 6,000+ bus opera
Slide 58: MoU for Eicher Pro 6055 LNG Trucks with Baidyanath LNG
Signed MoU for deployment of 500 Eicher Pro 6055 LNG trucks with Baidyanath LNG Hon'ble Minister Nitin Gadkari flags Eicher Pro 6055 LNG Trucks at the newly inaugurated BLNG station in Nagpur. Aims to develop green trucking routes and scale up the LNG Corridor in India. Eicher Pro 6055 LNG Trucks com
Slide 59: Eicher E-Mobility
EICHER E-MOBILITY Delivered electric commercial vehicles ● The first Pro 2055 EV was handed to Safe-Express, marking a milestone, while a partnership with Amazon for 1000 Pro 2049 EVs showcased a commitment to sustainable logistics. ● Delivered EV 9m buses to the Indian Army and National Highway Rail
Slide 60: Established Industrial Footprint
ESTABLISHED INDUSTRIAL FOOTPRINT VPS, IoT 4.0, Sustainability driven New Truck Plant – Bhopal Truck Plant – Pithampur Capacity 40,000 p.a. Parts Distribution Center - Capacity 90,000 p.a. Pithampur VE Powertrain – Pithampur Gear Box Unit – SEZ Capacity 80,000 p.a Pithampur Eicher Bus Plant – Baggad
Slide 61: Stores Operationalized in Q2FY25
22 stores operationalized in Q2FY25, Overall touchpoints @ 972 INVESTOR PRESENTATION 60 November 2024
Slide 62: Growing Market Share in a Competitive Market
GROWING MARKET SHARE IN A COMPETITIVE MARKET Volvo Trucks India* Light & Medium Duty Trucks 97.3% 35.3% #1 #1 72.6% 25.3% FY 2009 2Q FY25 FY 2009 2Q FY25 *Market share in high end premium segment Buses (Combined) Heavy Duty Trucks (Combined) 20.6% 9.7% #3 2.0% #3 5.3% FY 2009 2Q FY25 FY 2009 2Q FY25
Slide 63: Q2 FY25 - Steady Growth in VECV Volumes
Q2 FY 25 - Steady growth in VECV volumes despite shrinking VTI, Recovery in Exports Q2 -Quarterly YTD Segments Volumes Market share (%) Volumes Market share (%) Growth % Growth % Q2'FY25 Q2'FY24 Q2'FY25 Q2'FY24 FY25 FY24 FY25 FY24 HD 5155 4764 8.2 9.5 7.3 9844 9426 4.4 8.9 7.8 LMD 9565 9571 -0.1 36.
Slide 64: Q2 FY25 VECV Financial Highlights
Q2 FY 25 VECV FINANCIAL HIGHLIGHTS 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 income (part of other income) has been excluded from Total Income The figure
Slide 65: Eicher Motors Financial Review
EICHER MOTORS FINANCIAL REVIEW
Slide 66: Significant Value Creation for All Stakeholders
SIGNIFICANT VALUE CREATION FOR ALL STAKEHOLDERS Market Capitalisation (INR Billions) INVESTOR PRESENTATION 65 November 2024
Slide 67: Q2 FY25 Financial Highlights
Q2 FY 25 FINANCIAL HIGHLIGHTS Total Sales Revenue from operations Motorcycle Volumes ('000) EBITDA and Margin PAT All figures refer to EML Consolidated numbers and are in INR Crs unless specified INVESTOR PRESENTATION 66 November 2024
Slide 68: Consistent Delivery Leading to Strong Cash Accruals
CONSISTENT DELIVERY LEADING TO STRONG CASH ACCRUALS Total Sales Total Revenue from operations EBITDA and Margin Motorcycle Volumes ('000) PAT Net Cash OCF Net Cash = Cash and cash equivalent – Total debt All figures are in INR Crs unless specified INVESTOR PRESENTATION 67 November 2024
Slide 69: Profit & Loss Statement (Consolidated)
PROFIT & LOSS STATEMENT (Consolidated) Profit and Loss Account FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Sales Volume: Two Wheelers (Nos.) 822,724 697,582 609,403 595,474 824,066 912,003 453,053 Total revenue from operations (net of 9,797 9,154 8,720 10,298 14,442 16,536 8,656 excise) Manufacturing and o
Slide 70: Balance Sheet (Consolidated)
BALANCE SHEET (Consolidated) Particulars FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Net Fixed Assets (including CWIP and 2, 324 2,690 2,748 2,929 3,162 3,469 3,719 Pre-operative Expenditure) Investments 4,923 5,749 3,902 7,721 12,101 13,346 13,527 Other Non Current Assets 180 102 125 165 252 2,161 1,339
Slide 71: Statement of Cash Flows (Consolidated)
STATEMENT OF CASH FLOWS (Consolidated) Particulars FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Profit before tax and after share of 3,297 2,355 1,798 2,203 3,800 5,202 2,803 profit of Joint venture Operating profit before changes in 2,941 2,236 1,912 2,172 3,552 4,404 2,295 working capital Net Changes in wor
Slide 72: Royal Enfield
Royal Enfield Royal Enfield Royal Enfield