Bajaj Mobility Ag · SIX:BMAG
Bajaj Mobility — KTM Industries — Investor Presentation (June 2019)
47 slides from Bajaj Mobility's investor presentation, Jun 27, 2019
Slide 1: Management Presentation
MANAGEMENT PRESENTATION June 2019
Slide 2: Disclaimer
DISCLAIMER This document is for information purposes only and shall not be treated as giving any investment advice and/or recommendation whatsoever. This presentation and any information (written or oral) provided to you does not constitute an offer of securities, nor a solicitation for an offer of
Slide 3: Highlights
HIGHLIGHTS Continuation of strong growth and market share gains Market increase in Europe exceeds Record drive continued in Business Year 2018 expectations in Q1 2019 ▪ 261,454 motorcycles sold (+10% vs 2017) ▪ Registration Europe +21.9% Successful launch of KTM 800cc mid-class & ▪ Market share Euro
Slide 4: Revenue and EBIT performance
THE LEADING EUROPEAN POWERED-TWO WHEELER GROUP Revenue and EBIT performance Revenue CAGR 11-18: ~ 12.6% EBIT CAGR 11-18: ~ 22.5% 1800 200 EBIT (in EURm) Revenues (in EURm) 1600 1,559.6 180 1,533.0 *) 1,343.0 160 1400 161,2 1,223.6 140 1200 1,086.3 132,5 120 1000 122,3 896,3 112,9 100 825,7 800 678,6
Slide 5: Group structure
THE LEADING EUROPEAN POWERED-TWO WHEELER GROUP Group structure 51.7% 40.0%*) 100% 100% 74% 100% 50% 99.9% 70% PTW Design, concept eMobility Powered two wheelers development & digitalization Source: KTM Industries AG Note: Simplified group structure as of April 30, 2019 5 *) PEXCO GmbH „at equity“; 4
Slide 6: Wholesale 2018
WHOLESALE 2018 Strong unit growth in 2018 vs. 2017 Source: KTM Industries AG 6
Slide 7: Global powered 2-wheeler market
GLOBAL POWERED 2-WHEELER MARKET NORTH AMERICA* EUROPE ~ 56 Million Units 1,100,000 520,000 thereof Units Units CHINA ▪ approx. 28 Million Motorcycles 15,800,000 ▪ approx. 28 Million Scooters Units ASEAN 16,900,000 Units INDIA 16,600,000 OCEANIA LATAM 47,13 Units AFRICA 8 100,000 2,500,000 Units Unit
Slide 8: KTM/Husqvarna addressable market
KTM/HUSQVARNA ADDRESSABLE MARKET NORTH AMERICA EUROPE ~ 6 Million Units 580,000 ▪ KTM/Husqvarna 430,000 Units addressable market: Units CHINA ▪ 10.7% of Global Powered 1,100,000 2-Wheeler Market Units ▪ Global Target Market Share: 8% ASEAN 1,400,000 Units INDIA 2,033,000 OCEANIA LATAM 47,13 Units AF
Slide 9: Market and competitive environment: market size and share
MARKET AND COMPETITIVE ENVIRONMENT 2019 MAY C Overall trends in market size and share Motorcycle registrations and market shares by region 2019 MAY C ▪ Strong increase in Europe, Total registrations KTM + Husqvarna registrations KTM + Husqvarna market share especially in France and Spain 2018 2019 D
Slide 10: Market and competitive environment: positioning and momentum
MARKET AND COMPETITIVE ENVIRONMENT 2019 MAY C Positioning and momentum Brand performance Relative market position and momentum Performance ranking by brand Units ranking by brand 2018 2019 Diff. to PY Change 2018 2019 Diff. to PY Change HONDA 73,207 82,001 8,794 12.01% HONDA 73,207 82,001 8,794 12.0
Slide 11: The key to success
KKTAA INDUSTRIES AG BRANDS EMPLOYEES 11
Slide 12: Brands
BRANDS Source: KTM Industries AG 12
Slide 13: Brands
BRANDS Source: KTM Industries AG 13
Slide 14: KTM Product Portfolio
KTM PRODUCT PORTFOLIO 212.899 Units in 2018* SUPERMOTO / DUAL PURPOSE PERFORMANCE E-MOBILITY MOTOCROSS / ENDURO ADVENTURE / TRAVEL SUPERSPORT NAKED Source: KTM Industries AG | *261.454 units total sold in 2018, thereof 212.899 KTM’s 14
Slide 15: Husqvarna Product Portfolio
HUSQVARNA PRODUCT PORTFOLIO 48.555 UNITS in 2018* URBAN ENTRY E-MOBILITY MOTOCROSS / ENDURO BICYCLE / SCOOTER SUPER MOTO EXPLORER CLASSIC NAKED Source: KTM Industries AG | *261.454 units total sold in 2018, thereof 48.555 Husqvarna’s 15
Slide 16: KTM Performance - Mobility
KTM PERFORMANCE - MOBILITY Zero emission product strategy Freeride E 16kW Sport Mini 2kW Freeride Light 4kW ▪ Retail price: EUR ~11,290 ▪ 5 kW Top Performance ▪ In Development (incl. battery package EUR ~3,600) expected retail price: EUR ~5,000 SX-E5 2020 On the market SOP 4/2019 Market Launch 2020
Slide 17: KTM - Minicycles
KTM - MINICYCLES KTM und Husqvarna Electric Minicycles KTM SX-E5 MY 2020 HQV EE5 MY 2020 Technical information: battery (non-removable): Capacity 907 Wh usage/driving time: up to 2h for beginners, 25 minutes for racers charging time: 70 minutes for 100% 45 minutes for 80% Source: KTM Industries AG 1
Slide 18: Husqvarna Urban - Mobility
Husqvarna Urban - Mobility Zero emission product strategy GranUrban Husqvarna Scooter 4kW / 11kW ▪ Retail price: EUR 3,400 – 4,200 ▪ In Development Market Launch 2019 2020/21 Source: KTM Industries AG 18
Slide 19: PEXCO eBike
PEXCO eBike General International Roll-out Pexco 2019-2020 Market data 2019 Germany: 2019: > 1,000,000 units expected Acutal share of E in the market: >20% expected longterm: 35% Actual sales area In countries like Italy, UK, Spain unit sales of eBikes develops very rapidly; double-digit-% growth ex
Slide 20: PEXCO eBike model range 2019
PEXCO eBike Husqvarna and Raymon Model range 2019 GranUrban GranTourer MountainCross ▪ Retail price: EUR 3,400 – 4,200 ▪ Retail price: EUR 3,000 – 4,400 ▪ Retail price: EUR 4,400 – 6,200 21 models 20 models 56 models Source: Pexco GmbH 20
Slide 21: Globalisation - KTM production facilities
GLOBALISATION - KTM PRODUCTION FACILITIES ▪ Production Sites Austria 2 production sites & 7 CKD/CBU Mattighofen (HQ) facilities No capacity restriction in Chakan factory/India Transfer of production of Husqvarna model line 401 to Chakan/ India in Q4/2019 – Launch in India in 2020 China (Joint
Slide 22: Cooperation with Bajaj – stronger increase than planned
COOPERATION WITH BAJAJ – STRONGER INCREASE THAN PLANNED Production volume is expected to increase to over 200,000 units during the next years ▪ Stronger increase of sales Unit CAGR 17-22: ~17.1% volume (units) in India than ~200 planned ▪ Successful Launch of Duke 125 ~50 ▪ Already 450 KTM showrooms
Slide 23: Motorcycle growth driver - Cooperation with Bajaj
MOTORCYCLE GROWTH DRIVER - COOPERATION WITH BAJAJ Bajaj factory in Pune, India Source: KTM Industries AG 23
Slide 24: Joint venture with CF Moto
MOTORCYCLE GROWTH DRIVER Joint venture with CF Moto – High-end motorcycle market is growing 20% p.a. Joint venture with long-term Chinese partner CF Moto ▪ The joint venture will focus on the industrialization of components in China and the ASEAN region and the assembly of mid- class street motorcyc
Slide 25: Motorcycle growth driver – dealers & showrooms
MOTORCYCLE GROWTH DRIVER – DEALERS & SHOWROOMS Strong increase in KTM & Husqvarna dealers since 2016 – already > 200 dual brand dealers Flagship Store Wels/Austria 2,822 2,616 744 674 Husqvarna dealers KTM dealers 2 078 1 801 # of dealers 2016 2018 Source: KTM Industries AG Note: Chart includes subs
Slide 26: Development of employees
DEVELOPMENT OF EMPLOYEES 6 000 ▪ 150 apprentices ▪ 35 years average age 5 000 ▪ 23% female share 4,303 4 000 Flex-time Model ▪ great flexibility of time and place 3 000 2,039 2 000 ▪ Digital Intrapreneurship MBA ▪ YOUNG PIONEERS COLLEGE 1 000 678 271 0 2011 2012 2013 2014 2015 2016 2017 2018 F&E KTM
Slide 27: Investments
INVESTMENTS Facility Investments since 2009 – EUR 250 million Product Investments since 2009 – EUR 645 million*) 1 1. EXPANSION OF R&D MATTIGHOFEN 2 2. EXPANSION OF LOGISTICS CENTER MUNDERFING 3. MOTORSPORT 3 MUNDERFING *) R&D gross expenses 27
Slide 28: Outlook - strategic initiatives
OUTLOOK - STRATEGIC INITIATIVES Offensive market strategy in emerging Global production capacity markets ▪ Transfer of production of HUSQVARNA 401 model ▪ Market launch of Husqvarna street models in line to India (SOP 12/2019) India and emerging markets (Q3/2019) ▪ Successful ramp-up of Philippine J
Slide 29: KTM AG Mid Term 2022
KTM AG MID TERM 2022 400,000 units ▪ India is seen as the most important future market ▪ Largest growth in relative terms is expected in emerging markets ▪ New 390 ADVENTURE especially for emerging markets coming Q4 2019 ▪ Strong performance of inline twin cylinder (799cc) platform with more derivat
Slide 30: Financials and Outlook
3 P aN : OUTLO FINANCIALS A
Slide 31: Group structure
THE LEADING EUROPEAN POWERED-TWO WHEELER GROUP Group structure 51.7% 40.0%*) 100% 100% 74% 100% 50% 99.9% 70% PTW Design, concept eMobility Powered two wheelers development & digitalization Source: KTM Industries AG Note: Simplified group structure as of April 30, 2019 31 *) PEXCO GmbH „at equity“;
Slide 32: Financials
Financials Consolidated profit & loss figures under IFRS1) thereof Continued TOTAL operation ▪ Record sales of 261,454 in EURm 2016 2017 2018 ∆ 2017/18 ∆ 2017/18 1 motorcycles Revenues 1,343.0 1,533.0 1,559.6 +2% +8% 1 ▪ Revenue mix of street vs offroad is about 60:40 in 2018 EBITDA 198.4 218.9 252.
Slide 33: Impact of the sale of Pankl-Group on key figures
Financials Impact of the sale of Pankl-Group on the key-figures in EURm FY 2018 FY 2018 PROFIT AND LOSS before after Pankl Effect of 1 ▪ Positive deconsolidation effect from the sale of the Pankl- Pankl sale sale Pankl sale Group of € 26.2m included in total EBIT and EBITDA Revenues 1.559.6 1.559.6
Slide 34: EBIT margin bridge
Financials EBIT margin bridge Adjusted EBIT margin FY 2017 vs FY 2018 +1.7% -0.2% +0.2% 1 ▪ One-off cost impact due to four series launches Continued Deconsoli- ▪ Challenge for a view suppliers to keep up with growth of KTM PANKL operation dation Pankl 1 2 10.3% → Nearly compensated by initiated sus
Slide 35: Consolidated balance sheet and cash flow figures
Financials Consolidated balance sheet and cash flow figures under IFRS 2016 2017 2018 ∆ 2017/18 in EURm 1 ▪ Repayment of perpetual bond reduced Equity Balance sheet total 1,423.8 1,465.2 1,353.9 -8% about € 60m Equity 454.9 528.6 550.8 +4% 1 2 ▪ As a result of Pankl sale debt level improved Total in
Slide 36: Free Cash Flow and Net Debt Guidance 2019 – 2021
Financials Free Cash Flow and Net Debt Guidance 2019 – 2021 3 – 5% Free Cash Flow in EURm FY 2017 FY 2018 Chg. EBITDA 218,9 252,5 33,6 thereof 50-60 EURm + / - Interest receipts and payments -13,2 -15,0 -1,8 additional Cash Flow - Taxes -10,3 -35,6 -25,3 potential in 2019 + / - Non cash expenses (in
Slide 37: Outlook: Financial guidance
Outlook Financial guidance Short- and mid-term 2019/2020 2021 guidance (without PEXCO) Revenue growth (p.a.) 1) 1 – 5% 9 – 11% EBIT margin 8 – 10% 8 – 10% Capex2) in EUR (incl. leasing) 3) 150 – 160 million 150 – 160 million Net debt / EBITDA 1.0 – 1.2x < 1.0x Free Cash Flow / sales (p.a.) 3 – 5% 3
Slide 38: KEEL INDUSTRIES AG |
KEEL INDUSTRIES AG |
Slide 39: Appendix
APPENDIX
Slide 40: Motorcycle registrations and market shares
MARKET AND COMPETITIVE ENVIRONMENT Overall trends in market size and share Motorcycle registrations and market shares as of 31/12/2018 1 200k 15,0% Motorcycle registrations Market share ▪ KTM Industries continues to gain market share in the US. These gains are mainly driven by the 1 000k 11.7% 12,5%
Slide 41: Motorcycle growth
MOTORCYCLE GROWTH Long-standing growth track record with sales target of 400,000 units in 2022 Unit CAGR 93-18: ~ 15.6% ~400 ~50 ~70 261,5 238,3 49,6 ~80 203,3 47,1 183,2 35,9 48,6 36,9 158,8 31,0 18,2 30,8 21,6 123,9 14,9 107,2 ~200 154,3 163,3 125,7 130,6 136,7 98,7 106,1 84,4 90,3 92,4 81,2 70,5
Slide 42: KTM Product Portfolio - Street and E-Mobility
KTM Product Portfolio - STREET and E-MOBILITY ADVENTURE SUPERMOTO Performance NAKED SPORT TRAVEL DUAL-PURPOSE E-MOBILITY 1290 FREERIDE E 690/790/890 4 - 18kW FREERIDE E Light A1 490 FREERIDE E AM 125/250 390 SPORT MINI E ADVENTURE SMC R/SM R SM T / ENDURO R DUKE RC 42
Slide 43: KTM Product Portfolio - Offroad
KTM Product Portfolio - OFFROAD 450 SX-F HERLINGS REPLICA 500 EXC-F 500 EXC-F SIX DAYS SPORT MINICYCLES 14 YEARS ENDURO SIX DAYS 450 SX-F 450 EXC-F 450 EXC-F SIX DAYS SPORT MINI-E 85 SX 19/16 MOTOCROSS ENDURO SX-E15 350 SX-F 350 EXC-F 350 EXC-F SIX DAYS 85 SX 17/14 250 SX-F 300 EXC TPI 300 EXC TPI S
Slide 44: Husqvarna Product Portfolio – Street & E-Mobility
HUSQVARNA Product Portfolio – STREET & E-MOBILITY URBAN ENTRY E-MOBILITY SUPER MOTO / ENDURO 901 1301 1301 E-SCOOTER E-BICYCLE EXPLORER CLASSIC NAKED 701 901 901 501 501 501 125/250/401 250/401 125/250/401 44
Slide 45: Husqvarna Product Portfolio - Offroad
HUSQVARNA Product Portfolio - OFFROAD 14 YEARS SPORT E-MINICYCLES FC 450 ROCKSTAR EDITION FE 501 TC 85 19/16 SPORT MINICYCLES MOTOCROSS FC 450 FE 450 TC 85 17/14 ENDURO 5++k W FC 350 FE 350 TE 300i TC 65 5+kW FC 250 TC 250 FE 250 TE 250i TC 50 3 5kW TC 125 TX 125 TC 50 MINI 45
Slide 46: Data sources for motorcycles market information
Appendix Data sources for motorcycles market information and intelligence Sources by market Europe Reported countries: AT, BE CH, DE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK Data source: ACEM, national data providers Motorcycles: >120cc & electric, no MX available North America Data source: MIC (
Slide 47: Management team & contact details
Management team & contact details Contact details KTM Industries AG KTM Industries AG Stefan Pierer Edisonstrasse 1 ▪ CEO ▪ DI 4600 Wels Austria Friedrich Roithner www.ktm-industries.com ▪ CFO ▪ Mag. Hubert Trunkenpolz ▪ CSO Mag. Michaela Friepess, IR ▪ Mag. Ing. E-mail: ir@ktm-industries.com Phone: