Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Investor Day (November 2022)
119 slides from Escorts Kubota's investor day presentation, Nov 18, 2022
Slide 1: Filing cover letter to stock exchanges
November 18, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400001 Bandra East, Mumbai – 400051 BSE – 500495 NSE – ESCORTS Sub: Presentation made during “Escorts Kubota Investor & Analyst Meet 2022” De
Slide 2: Mid Term Business Plan (MTBP)
Mid Term Business Plan (MTBP) 18 November 2022 BSE: Escorts 500495Kubota | NSE: Limited ESCORTS 1
Slide 3: Welcome
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Slide 4: Safe Harbor
Safe Harbor Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im
Slide 5: More than 76 Years of Spreading Prosperity, Impacting Lives
About Escorts Kubota Limited (Formerly Escorts Limited) More than 76 Years of Spreading Prosperity, Impacting Lives. Bringing World's best to India and offering India's best to the world Escorts Kubota Limited 4
Slide 6: Our Current Business
Our Current Business Revenue FY22: ₹ 7,197 Cr. (USD 950 million) Agri Machinery Construction Equipment Railway Equipment Division Our advanced Agri-machinery solutions that Our vast range of construction & material RED’s wide array of enhance agricultural productivity and add value handling equipmen
Slide 7: About Kubota Corporation
About Kubota Corporation Escorts Kubota Limited 6
Slide 8: Kubota Group
Kubota Group Group Companies Group Companies Group Companies Group Companies Group Companies 198 Company Globally > 43 thousand Employees Globally >2/3rd Revenue from outside domestic region As of Year ended December 2021 Escorts Kubota Limited 7
Slide 9: Key Business Segment & Revenue
Key Business Segment & Revenue Revenue CY21: USD 20 Billion Farm & Industrial Machinery Water & Environment Manufacturing and sales of products such Manufacturing and sales of pipe- and as farm equipment, agricultural-related infrastructure-related products and products, engines, and construction en
Slide 10: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 11: Update from Last Meet in 2018
Update from Last Meet in 2018 Mr. Bharat Madan President Finance, Group CFO & Corporate head Escorts Kubota Limited 10
Slide 12: Our Management Team
Our Management Team Ashutosh Rajiv Wahi Bharat Madan Ashwani Malik Neeraj Mehra Sanjeev Bajaj Ankur Dev Amit Singhal President Finance, Tripathi Chief Officer R&D & International Chief Executive- Rajan Chugh Group CHRO & Chief Officer Business Head PT, Business Head- Chief Executive Group CFO & Inno
Slide 13: EKL - Journey
EKL - Journey REFORM PERFORM TRANSFORM 2004 - 2012 2013 - 2022 2023 -2028 Starting of profitable Rebuild the Core Expand the Core growth Product Innovation Mechanization and Basic Processes and providing the total solution. MTBP Hygiene Capability & Cultural Transformation Expand int
Slide 14: Vision 2022… 1/2
Vision 2022… 1/2 Escorts Kubota Limited 13
Slide 15: Vision 2022… 2/2
Vision 2022… 2/2 Escorts Kubota Limited 14
Slide 16: Vision 2022 Achievements…
Vision 2022 Achievements… Dual Distribution South/West focus Domestic Tractor Market Share Emerging Business Construction Equipment revenue RED Expanding Core Improved Corporate Governance Products Innovations (Many first Electric, Hybrid, etc.) Plant Capability Escorts Kubota Limited 15
Slide 17: Vision 2022 Achievements…
Vision 2022 Achievements… Total Income (Rs. Cr.) Export % of Operating Revenue Target – 2.5 X Target – 10 % Achievement – 1.7 X 7,366 Achievement – 7%+ 7,084 8.0 % 7.4% 6,277 5.7% 7.0 % 5,853 6.0 % 5.0% 5.4% 5,075 5.0 % 4.4% 4.4% 4.0 % 4,211 3.0 % 2.0 % 1.0 % 0.0 % FY17 FY18 FY19 FY20 FY21 FY22 FY17
Slide 18: …a true wealth creator…
…a true wealth creator… (₹ Crores) Value Creation (Market Capitalization) 26,589 22,309 18,712 10,028 9,758 8,122 6,604 841 1,479 1,556 1,709 607 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 As of 17 November 2022 Credit Rating Upgrade from ICRA & CRISIL LBBB- In FY12 A In FY17 AA+ In FY22
Slide 19: Vibrant Board of Directors
Vibrant Board of Directors Nitasha Shailendra Hardeep Yasukazu Nikhil Nanda Seiji Fukuoka Singh Dai Watanabe Yuji Tomiyama Shiro Watanabe Nanda Agrawal Kamada Executive, Non-Independent Directors Non-Executive, Non-Independent Directors Sutanu Sunil Kant Tanya Harish N. Ravindra Chandra Kenichiro Vi
Slide 20: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 21: EKL Journey Ahead
EKL Journey Ahead Mr. Nikhil Nanda Mr. Seiji Fukuoka Chairman & Managing Director Deputy Managing Director Escorts Kubota Limited 20
Slide 22: Very different world today
Very different world today Image Courtesy Microsoft 365 Creative content Escorts Kubota Limited 21
Slide 23: Partnering India's Growth Journey
Partnering India’s Growth Journey Escorts Kubota Limited 22
Slide 24: Synergies
Synergies Global Strategic Partner Scale of operation Access to World-class Technology Access to Best-in-class Quality / Business Processes Global Brand Association • Diversified • Frugal Strategic Sourcing Hub for Good & Services Global Manufacturing presence and revenue • Indian subcontinent • Tec
Slide 25: India Mega trends In the next Decade
India Mega trends In the next Decade POPULATION Demographics Digitalization Decarbonization Deglobalization World Population to reach Global temperature: Outsourcing India is aggressively 8.6 Billion by 2030 from current ~8 Billion pushing Digitalization of Increase by 1.5º by 2030 India Skilled lab
Slide 26: Mission Vision
Mission ● Establishing the measures for sustainable growth in response to issues in the mega trend of the world. ● Contributing to the creation of a living environment where people (especially, farmers, women and social vulnerable people) can live comfortably. ● Committing to the society in India &
Slide 27: Message from Kitao San
Message from Kitao San Yuichi Kitao President and Representative Director Kubota Corporation, Japan Escorts Kubota Limited 26
Slide 28: Escorts Kubota Limited
For Earth, For Life Kiybota
Slide 29: EKL Video
EKL Video Please Click here Escorts Kubota Limited 28
Slide 30: Way forward
Way forward Escorts Kubota Limited 29
Slide 31: Major Concepts, Target & Activities
Major Concepts, Target & Activities 【Existing Business Expansion】 【Manufacturing, Sourcing & Digital Transformation】 ● Mfg. : Green Field to produce Tractors & Engines ● Profitability : EBITDA in mid teens % as EKL ● Export Parts & Components Global Sourcing ● Tractor Domestic (Market Share) : Chall
Slide 32: Way forward
Way forward To become the total solution provider to solve the issues of society for a sustainable world. Aspiration Enablers Comprehensive Solution Provider, to Indian Brands & Product Enhancement farming sector Innovation Leadership in India Led Tractor Exports Digital Transformation Significant p
Slide 33: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 34: Manufacturing Excellence
Manufacturing Excellence Mr. Seiji Fukuoka Mr. Ashutosh Tripathi Deputy Managing Director Chief Officer Manufacturing– Agri & Construction Escorts Kubota Limited 33
Slide 35: Kubota Production System (KPS)
Japan – Quality & Customer Service Adoption of Kubota Production System (KPS) End-to-end deployment of Total Quality Management principles Streamlined manufacturing processes and Smart facilities KPS Improve the efficiency and productivity across the value chain Supplier development and capability e
Slide 36: Manufacturing Footprints
Manufacturing Footprints Manufacturing Footprint Current-2022 Aspiration-2028 Enablers Manufacturing Plant 5 6 Greenfield Capacity (Tractor & Engine) ~1.7 Lacs ~3.0 Lacs • State-of-art Engine Manufacturing Facility for Domestic & Export by 2024 • BS V readiness to meet the emission regulation • Glob
Slide 37: KBT Global Sourcing – India Opportunity
KBT Global Sourcing – India Opportunity Kubota Worldwide buying value of the components about $ 8.7 billion and growing Reasons for sourcing from India • Currently Kubota group is sourcing certain • Securing supply volume for KBT businesses. parts from India and growing • Cost reduction. • Even 5% s
Slide 38: Environment
Environment Aiming carbon neutral by 2050 in line with KBT vision Promoting resource recycling (environmental impact reduction + CO2 reduction) Zero landfill waste by 2026 Water positive organization by 2030 3x improvement in renewable energy share Tree Plantation drives to multiply green area cover
Slide 39: CSR (Corporate Social Responsibility)
CSR (Corporate Social Responsibility) Sustainable Agriculture practices Upliftment of safety and health in local communities • Model Farm Development at EAFI, Kurukshetra & • Safe driving training and awareness programs ETDC, Bangalore • Health care facilities for the underprivileged • Sustainable I
Slide 40: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 41: Agri Machinery
Agri Machinery Mr. Hisakazu Kitanobo Mr. Neeraj Mehra Chief Officer Agri Business Business Head Powertrac. Agri Business Escorts Kubota Limited 40
Slide 42: Agri Sector Mega Trends
Agri Sector Mega Trends POPULATION AGRICULTURE GDP FOOD DEMAND AGRI WORKFORCE AGRI PRODUCTIVITY India Agri GDP Growth: Global Food Demand: In developed countries, less USA & China lead in agriculture +35% increase by 2030 than 5% population is engaged yield. By 2020, Ag GVA is $276.4 in agriculture.
Slide 43: India Domestic Tractor Industry
India Domestic Tractor Industry Volume in Million Increasing Trend towards 0.84 Mechanisation Minimum Support Prices for 0.58 0.53 Key Crops 0.30 Scarcity of Labour 0.23 Ease of Credit Availability from Govt. FY05 FY09 FY13 FY17 FY22 India is the largest manufacturer of farm equipment India acco
Slide 44: EKL Agri Machinery in India
EKL Agri Machinery in India Comprehensive Solution Provider Aspiration Enablers Challenger position in Domestic tractor as per Brand & Product Enhancement SOM Channel Expansion Winning Market No 1 in Combine Harvester and Rice Transplanter Retail Finance Digital transformation Top 3 in Implement Bus
Slide 45: Brand & Product Enhancement
Brand & Product Enhancement Right Positioning of Brands to Cover all Segments Brands Powertrac* Farmtrac Kubota Customer Entry Level Mass Segment Entry Level Premium Premium Positioning Portfolio Expansion 1.5~3X across brands FY22 FY28 * Powertrac includes Steeltrac & Digitrac Escorts Kubota Limite
Slide 46: Channel Expansion
Channel Expansion Dual Brand FT Dealer PT Dealer Dealers to become a multi-brand owner KAI Dealer Expanding Channel Reach Dealer Network Dealer Network EKL – 1.5X FT & PT – 1,100+ KBT – 300+ FY22 FY28 Escorts Kubota Limited 45
Slide 47: Winning Market
Winning Market FT Market PT Market KBT Market Different Zone EKL’s Business Base KBT to North EKL to South KBT’s Business Base FY22 FY28 Escorts Kubota Limited 46
Slide 48: Retail Finance
Retail Finance Partner with various banks and NBFCs Escorts Kubota Limited 47
Slide 49: Digital Transformation
Digital Transformation Digitrac Online Platform Contactless sales Digital Business Grow Revenue Deliver Models Experience Drive Operational Efficiency Escorts Care+ Escorts Kubota Limited 48
Slide 50: Farm Solution
Farm Solution Escorts Kubota Limited 49
Slide 51: Combine Harvester & Rice Transplanter
Combine Harvester(CH) & Rice Transplanter (RTP) Evolve from Track-type leader to the most Dominant Harvester Manufacturer in India. Contribute to food security of India by better productivity of rice through mechanization. Escorts Kubota Limited 50
Slide 52: Top 3 in Implement Business
Top 3 in Implement Business Product Range & Technology Rotary Tillers Orchard Sprayer Mini-Round Baler Plough Power tillers Self-propelled sprayer Supply Chain & Distribution Network Expansion project to be taken with Kubota Group companies Escorts Kubota Limited 51
Slide 53: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 54: Export Market
Export Market Mr. Rajiv Wahi Chief Executive – International Business Escorts Kubota Limited 53
Slide 55: India Tractor Export Industry
India Tractor Export Industry Volume in ‘000s Favorable government support – Policies 129 Shrinking Agri land due to urbanization 92 89 76 64 Growth in population – Food security Neighbouring countries have similar climate as that of India Shorter Tractor Replacement Cycle FY13 FY19 FY20 FY21 FY22 I
Slide 56: EKL Exports Way Forward
EKL Exports Way Forward Aspiration Enablers Multi Strategy ( Farmtrac /Powertrac & E- Kubota ) Leadership position in India Led Tractor Export Channel Expansion & Synergy with Kubota EKL targets 4 key high TIV markets with KBT presence - USA, EU, Thailand and Brazil Product Enhancement Strategic Hub
Slide 57: Channel Expansion: Target High TIV Markets
Channel Expansion: Target High TIV Markets Leverage KBT Channel KBT Sales Companies KBT/EKL Distributors NORTH EUROPE AMERICA THAILAND Asia BRAZIL Latin Africa America - Leverage KBT Global channel with EK brand - Strengthen EKL channel presence with FT/PT brand - Both KBT and EKL to streamline dist
Slide 58: Product & Channel Enhancement
Product & Channel Enhancement Expand Farmtrac/ Powertrac Brand via EKL Channel & E-KUBOTA Brand via KBT Global Channel Compact Segment Utility Segment Narrow Segment Electric Segment X 2X new Products across Segment Strengthen EV portfolio for mature markets and Expand product range in all tractor
Slide 59: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 60: Construction Equipment Business
Construction Equipment Business Mr. Sanjeev Bajaj Chief Executive Escorts Kubota Limited 59
Slide 61: India Story – Resilience Opportunity Growth
India Story – Resilience Opportunity Growth More so now for Construction Equipment Industry ~3X current size by 2030 3rd Largest CE Industry in world, projected to be 2nd largest by 2030 One of the champion sectors prominent for exporting from India Net exports ~15 – 20 % by FY30 Employment generate
Slide 62: Construction Sector Mega Trends
Construction Sector Mega Trends Government of India has focused on "infrastructure led growth" by deploying significant planned outlay across sectors Total Construction Equipment (CE) Industry is 85,000 units in FY22 (3rd biggest in the world), expected to be 2nd in 2030. Escorts Kubota Limited 61
Slide 63: CE Industry
CE Industry EKL Present in 3 major Segment of Material Earthmoving, Material Handling Processing Concrete and Road Equipment 1% Equipment 11% Road Equipment EKL Present in 54% by Volume of 6% total CE Industry Compactors 5% BHL – 38% Material Handling Cranes 9% BHL 9% CE 38% Industry Mini Excavator
Slide 64: EKL Construction Equipment's Way Forward
EKL Construction Equipment's Way Forward No.1 Brand that contributes to Nation-Building and Urbanization. Aspiration Enablers Wide Product Range No 1 Position in Material handling Pick & Carry Crane Customer & Market Segmentation No 1 Position in Mini Excavators Enhancing Product Offering & Innovati
Slide 65: Wide Product Range
Wide Product Range Cranes BHL Compactor Mini Excavator Create & Nurture Competitive Advantage • Market Shift towards strong • Products to cater both • Product range for • Common channel hold high capacity Segments Rental & Captive Mass Rental , Mass with BHL. Synergise markets Captive & Corporates &
Slide 66: Customer & Market Segmentation
Customer & Market Segmentation YELLOW LINE BRAND (Value) WHITELINE BRAND (Features) Mini Excavator Retail Fleet < 5units Fleet > 5units Corporate (60%) (40%) (70%) (30%) Customer Segmentation Product Individual/Rental Hirers Fleet/Contactors Owners Government/Corporate Crane ~60% ~20% ~20% BHL & Exc
Slide 67: Expand Product Offering & Innovation
Expand Product Offering & Innovation Expanding Core Products Rough Terrain Crane Mini Excavator Material Handling Earthmoving Material Handling Earthmoving Road Construction New technology Models with Better Features, More Productive & Connected Machines Safety, GPS, Remote monitoring, Theft prevent
Slide 68: Mini Excavator
Mini Excavator Product Strategy • Common channel with BHL EKL • Customer Experience Focus Channel • Add product range Strength • Localisation • Application based marketing KAI Channel Strength Escorts Kubota Limited 67
Slide 69: Channel Expansion
Channel Expansion Delivering “World Class Customer Experience” through an efficient, sustainable and profitable channel , with a strong online presence Double by FY28 Channel Presence Channel Sustenance Brand Image Establish a robust channel, Be profitable, Act as a One Channel quality, Dealer last
Slide 70: Current Global Presence & Future Network Expansion
OUR CURRENT GLOBAL PRESENCE & FUTURE NETWROK EXPANSION 20+ COUNTRIES & GROWING Middle East – 3/2 South East Asia – 3/4 SAARC - 4 L AT M - 3 Africa – 8/7 Current Markets Future Markets TO TA L – 2 1 / 1 3 Escorts Kubota Limited 69
Slide 71: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 72: Engine Application Business
Engine Application Business Mr. Rajan Chugh Business Head – Emerging Business Escorts Kubota Limited 71
Slide 73: Industry Overview: Engine Market Size
Industry Overview Volumes in the Power Back-up and Construction machinery Continued volume growth and demand for cleaner technology industries have been growing will drive ~2x market size jump (by FY30) in the engine applications Last 3 year industry volume CAGR during FY20-22 FY23 FY30 MARKET SIZE
Slide 74: EKL Plan & Enablers
EKL Plan & Enablers Contribute to Indian Innovative power society & solutions for Indian environment consumers Enablers for EKL Low emission Hybrid, norms, fuel 1. Synergy between Indian and Japanese alternative fuel efficiency, engines technology durability 2. Introduction of CPCB-4 and BS-V norms
Slide 75: Spare Parts Business
Spare Parts Business Escorts Kubota Limited 74
Slide 76: Business Overview
Business Overview Beyond Customer Expectation in service responsiveness & cost Vision competitiveness Customer benefit: Best performance with Longer product life High quality parts For local and global markets Cost optimization Parts availability By Demand, Operations & At right time and right place
Slide 77: EKL Plan & Enablers
EKL Plan & Enablers • Capacity enhancement to service EKLs Spare-parts Sales growing customer base • India as procurement center for Kubota global Global Parts Center customers • Optimize Operational Cost by Centralizing Warehouses • Rationalize Inventory Management 2.4x Kubota Best • Standardize Pa
Slide 78: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 79: Global R&D and Innovation
Global R&D and Innovation Mr. Ashwani Malik Chief Officer R&D and Innovation Escorts Kubota Limited 78
Slide 80: Content
Content: 1. Current Product Portfolio 2. Global Product Development 3. Innovation & New Technology 4. Shared Services Escorts Kubota Limited 79
Slide 81: Current Product Portfolio
1. Current Product Portfolio 2. Global Product Development 3. Innovation & New Technology 4. Shared Services Escorts Kubota Limited 80
Slide 82: EKL Product Portfolio: 3 Brands
EKL Product Portfolio : 3 Brands Escorts Kubota Ltd. has Positioned itself as a change leader in the agriculture sector with over 1.5 million tractors, ranging from high-capacity engine to modern & rugged transmissions and multi-utility tasking capabilities. Comprehensive range with models catering
Slide 83: EKL Product Portfolio: Export Range
EKL Product Portfolio : Export Range Compact Narrow Trac Utility Segment Segment Segment - Narrow track width and low height in -General purpose tractor in - Compact size in 20-35 hp range 75 to 90 hp range 50 to 110 hp range - Specialized usage in Orchards & - Suitable for applications inside rows
Slide 84: EKL Product Portfolio: Construction Eq.
EKL Product Portfolio : Construction Eq. Traditional New Generation Cranes Cranes 10-15 TON 13-30 TON Backhoe Loaders Soil & Tandem Compactors 75-100 HP 3-11 TON Escorts Kubota Limited 83
Slide 85: Global Product Development
1. Current Product Portfolio 2. Global Product Development 3. Innovation & New Technology 4. Shared Services Escorts Kubota Limited 84
Slide 86: EKL KUBOTA Synergy
EKL KUBOTA Synergy To be the strategic development base for affordable products and leading innovation Combining strengths to create advanced and affordable Farm Mechanization solutions for the world Create Synergies Creating Specialized EKL Agile Product KBT Global Expertise Products for World Deve
Slide 87: MTBP Thrust Areas
MTBP Thrust Areas Bridging Portfolio Meeting Latest Gaps Emission norms THRUST AREAS Creating Application New Feature specific Tractors Enhancement Product Enhancement for Global Markets Escorts Kubota Limited 86
Slide 88: Innovation & New Technology
1. Current Product Portfolio 2. Global Product Development 3. Innovation & New Technology 4. Shared Services Escorts Kubota Limited 87
Slide 89: The Concept of Kubota's Smart Village
The Concept of Kubota’s Smart Village Click Here Escorts Kubota Limited 88
Slide 90: Industry & Technology Megatrends
Industry & Technology Megatrends ALTERNATE FUELS AUTONOMOUS DIGITIZATION SERVITIZATION Alternate fuel equipment's Vehicle, Process and task Digitized and connected Emerging Service Models Commercialisation will automation world is the new normal will disrupt the Market pace up Escorts Kubota Limited
Slide 91: Kubota Innovation Network
Kubota Innovation Network EKL Innovation Centre EKL Innovation Centre (1) Be part of Kubota Global R&D Network (2) To become a total solution provider, the Innovation Centre focuses on the advanced technology (3) To aim for early acquisition of technology by promoting an open innovation. Escorts Kub
Slide 92: Rajan Nanda Innovation Lab (RNIL)
11/18/2022 Rajan Nanda Innovation Lab RNIL RNIL as a platform for accelerating innovation at EKL RNIL is established as new vertical to Lead & Sustain Connect Growth, in today’s competitive world on Technology Real Time (Telematics) front. New Services & Go Digital – • Develop Next Gen Products (eg
Slide 93: Innovation Areas
Innovation Areas ALTERNATE FUEL PACS Guidance & Control Precision systems Agronomic Sensing & Electric Monitoring Autonomous Auto Turn & Auto Steer Improved farm productivity CNG Connected Operation, Safety & Service information Geo fencing for rental solutions Smart Hybrid Digital Scr
Slide 94: Shared Services
1. Current Product Portfolio 2. Global Product Development 3. Innovation & New Technology 4. Shared Services Escorts Kubota Limited 93
Slide 95: Shared Services
Shared Services KBT EKL Outsource Development Themes R&D KMC Develop and submit Drawing and/or test-report KBT R&D (Japan) KRDE EKL KMC KRDNA (France) Shared Services (USA) KRDA (Thailand) Escorts Kubota Limited 94
Slide 96: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 97: Railway Equipment Division
Railway Equipment Division Mr. Ankur Dev Chief Executive Escorts Kubota Limited 96
Slide 98: Industry Highlights – Indian Railways
Industry Highlights – Indian Railways Freight Modal Mix (2022 vs. 2050) Others 9-12% Others : Water, Air etc. Others 20-25% Road 25-30% Rail 27-30% Road 60% Rail 50-55% 2020 2050 Source: Logistic Policy, NRP and Ministry Interviews, CRISIL Focus On Upgrading Infrastructure Reduction In Carbon Footpr
Slide 99: Investment Plan – Indian Railways
Investment Plan – Indian Railways Key Take Away Track Infrastructure – 24.5 Lac Cr. Rolling Stock – 13.2 Lac Cr. Terminal Infrastructure – 0.9 Lac Cr. 15.0 8.4 9.6 4.8 0.1 0.8 Track Infrastrcture Rolling Stock Terminal Infra 2021-31 2031-51 All figure in INR Lakh Cr. Source: ICRA and Ministry
Slide 100: Railway Business Way forward
Railway Business Way forward Aspiration Enablers Leveraging Core Strength – 60+ Years of Industry Presence Catering to the vast network of the Rolling Expanding Market - Semi High Speed Trains, Metro & stock with components & systems Exports Ensuring Safety And Comfort Inorganic Growth – Technology
Slide 101: Global Presence
Global Presence Presence across 4 continents Exporting Railways Products To: - South Asia - South East Asia - Africa - Oceania - Europe Exported Products: - Air Brake System - Dampers - Brake Blocks - Test Benches - Spares Escorts Kubota Limited 100
Slide 102: Product Induction Journey Up to Year 2022
Product Induction Journey Up to Year 2022 2016 2019 2022 1962 1966 1968 1969 1978 1997 2011 2013 2015 Metro (Refurbishment & Dampers) Composite Brake Blocks Valves Axle mounted disk brake system Rev 3 Coupler Air Brake System Semi permanent couplers (ABDBS) Escorts Microprocessor con
Slide 103: Growth Trend & Strong Order Pad
Growth Trend & Strong Order Pad Revenue (₹ Crore) Covid Drivers Impact 636 477 479 Expanding Biz: 394 Through Private Wagon Builders 287 Exports to Africa & Asian Countries 228 242 Product Development: 182 Faster commercialization of products Competitive pricing: FY '15 FY '16 FY '17 FY '18 FY
Slide 104: International Railway Industry Standard (IRIS)
International Railway Industry Standard (IRIS) Jun Jun 2016 Stage-1 2015 Audit Passed IRIS Certification Dec Start 2016 International accreditation for Design, Development & Stage-2 Manufacturing in India Certification Audit Completed May 2017 Dec 2021 Aug 2017 Certification updated to Silver Level
Slide 105: Product Diversification
Product Diversification Existing Product Category Coupling Systems Suspension Systems Friction & Rubber Product Brake Systems Axle Mounted Break System (AMDBS) AARH – Passenger Coach Primary Secondary Brake Pad , Pad & Silent Blocks New Product Category (Future Products) HVAC’s Door’s Electrical Pan
Slide 106: Growing Aspirations
Growing Aspirations Revenue in ₹ Crore Catering to the vast network of the Railways with components ensuring safety and comfort 1 RED is targeting ~3X revenue growth over the next 6 years, leveraging the opportunities in the Railway segment 2 Product localization and entry into higher margin product
Slide 107: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 108: People & Culture
People & Culture Mr. Amit Singhal Group CHRO & Deputy Corporate head Escorts Kubota Limited 107
Slide 109: A future with many Possibilities & Opportunities
A future with many Possibilities & Opportunities Employees Customers ON YOUR SIDE Partners Community Escorts Kubota Limited 108
Slide 110: Our Employee Value Proposition
Our Employee Value Proposition Boldness , Fairness, Employer Brand for a Transparency & Sustainable Future Collaboration Believe Empower Customer First approach Inclusion Growth Mutual Respect with diversity & inclusion Nurture Opportunities to learn & innovate Escorts Kubota Limited 109
Slide 111: Key Levers for People & Culture
Key Levers for People & Culture Organization Structure Lean and Agile Structure • Building Capacity with right cost HR policies • Faster decision making with right • Benchmarked with reporting levels and span of control Industry • Aligned to context Competitive Pay • Role & Performance based Digitiz
Slide 112: Escorts Kubota Limited
E Kiybhota Escorts Kubota Limited
Slide 113: Mid Term Business Plan-Aspirations
Mid Term Business Plan-Aspirations Mr. Bharat Madan President Finance, Group CFO & Corporate head Escorts Kubota Limited 112
Slide 114: EKL - Journey
EKL - Journey REFORM PERFORM TRANSFORM 2004 - 2012 2013 - 2022 2023 -2028 Starting of profitable Rebuild the Core Expanding the Core growth Product Innovation Disruptive Tech led - Basic Processes and Innovation Hygiene Capability & Cultural Transformation Mechanization and Exit No
Slide 115: Mid-term Business Plan - Aspirations
Mid-term Business Plan - Aspirations FY2022 FY2028 (₹ Crore) (Actual) EKL Aspiration 2.5X EKL + EKI + KAI Revenue (Rs. Crore) 9,068 > 2.5X Export Revenue to Total Revenue% ~6.4% 15~20% Operating profit (EBIDTA %) 10.8% Mid Teens ROCE ~17% 25%~30% FY22 FY28 Aspirations ROE ~13% >18% 2.5X 2X 3X FY22 F
Slide 116: Capital Allocation Strategy > Profitable Growth
Capital Allocation Strategy > Profitable Growth EKL is focused on its key priorities for Cash Deployment Strategy through Mid-Term Business Plan Particulars Aspiration Investment in R&D & Innovation Upto 5% of Net Profit Shareholder return (including buyback) Upto 40% of Net profit Total Capital (Re
Slide 117: Contributing to society by earning trust of its customers
“Contributing to society by earning trust of its customers” Escorts Kubota Limited 116
Slide 118: Glossary
Glossary • EKL - Escorts Kubota Limited • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • YoY – Represents Year on Year • LY – Represents Last Year • CY – Represents Current Year • BHL – Backhoe Loader • KBT – Kubota ＊RNIL : Rajan Nanda Innovation Lab • R&D - Researc
Slide 119: Thank You
THANK YOU Contact Details Bharat Madan +91 129 2564837 (President Finance, Group CFO & Corporate head) bharat.madan@escorts.co.in Escorts Kubota Ltd. (CIN: L74899HR1944PLC039088) Corporate Centre 15/5 Mathura Road Faridabad – 121003 Phone: +91 129 2250222 www.escortsgroup.com Prateek Singhal +91 129