Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Day (November 2015)
35 slides from Eicher Motors's investor day presentation, Nov 30, 2015
Slide 1: Eicher Motors Investor's Meet: Journey of VECV
Eicher Motors Investor’s Meet Nov 30th , 2015 - Chennai Journey of VECV Vinod Aggarwal, CEO 1
Slide 2: Contents
Contents Business Environment VECV Overview Strategies and Outlook 2
Slide 3: Indian Economy
Indian Economy India GDP by sector FY15 GDP growth % 12 *0.2% 9.5 9.6 9.3 10 8.6 8.9 *10.2% 8 6.7 6.7 6.9 7.3 Agriculture 6 5.1 16.1% 4 Percentage share of sectors at 2 Services current prices in the new series, 0 52.5% 2011-12 Industry 31.3% *6.1% • India Nominal GDP @ ~2 TUSD (2014) is 9th largest
Slide 4: India Infrastructure Outlook
12th Plan investments (2012-17) India Infrastructure Outlook Infrastructure investments Airports Oil and Gas,Storage 2% 4% Investment (TINR) Ports 60 55.7 3% 50 TINR (Rs. Lac Crore) Water Electricity supply,irrigation 14% 33% 40 Railways 30 24.2 11% 20 Roads and 9.2 bridges 10 16% Telecommuni 0 cati
Slide 5: Road Sector
Road Sector Roads expenditure - Union Budget (Rs. Cr.) 2014-15 Est. 2015-16 Bud. National Highways 38548 78244 Grants to States for roads 5960 7439 Rural roads including grants to states 14200 14291 Maintenance of National highways 2599 2071 Total 61307 102045 • Ministry of road transport and highwa
Slide 6: Automotive Mission Plan 2016-26 Key takeaways
Automotive Mission Plan 2016-26 .. Key takeaways • AMP 2026 aims to propel the Indian Automotive Industry to be the engine of the “Make in India” program. • “Vision 3/12/65” – By 2026, Indian Automotive industry to be among the top 3 in the world, and growing in value to over 12% of India’s GDP (fro
Slide 7: VECV Milestones since inception
…VECV Milestones since inception… 2009: Launch of CSI-1 quality improvement initiative May 2008: Signing of definitive agreements 2009: Inauguration of new gear component plant at Dewas 2010: Launch of VE-series of Eicher HD trucks Jul-Aug 2008: Commencement of JV 2010: VTI launched FH 520 - the mos
Slide 8: VECV Milestones since inception
…VECV Milestones since inception… 2013: Pro Series launch 2013: Start of cabin production in body shop 2013: EEC gear plant, Dewas Unit II inauguration 2013: Start of production at Bus body plant at Baggad (MP) 2015:Inauguration of ‘Customer Experience Center’ and ‘Vehicle display zone’ 2014:Volvo T
Slide 9: Strong Corporate Governance
Strong Corporate Governance • Institutionalized strong Corporate Governance at VECV • 2 members from Volvo AB, 2 members from EML, and 2 independent members on VECV Board. • Strong Professional Management. • Key Decision Fora driving the cooperation projects between Volvo AB & VECV. Viz Technology c
Slide 10: VECV Board
VECV Board Siddhartha Lal Christophe Lila Chairman Martin Poonawalla Philippe Raul Prateek Divry Rai Jalan 10
Slide 11: VECV - Executive Management Council
VECV - Executive Management Council Vinod Aggarwal CEO Amanppreet S Bhatia Gilles Boutte B Srinivas R S Sachdeva Rama Rao A S Rajesh Mishra Sr VP HR Sr VP & CFO Sr VP Strategy & Exec VP SVP Sales, Marketing Sr VP Corporate Product Planning & Aftermarket, Process & IT Technology Volvo Trucks India Ad
Slide 12: VECV Strategic Direction
VECV Strategic Direction • To be recognized as the industry leader driving modernization in commercial transportation in India and the developing world • Aspirational target to reach volumes > 100,000 units, with >10% from exports in next 3 to 4 years. • VEPT Engine volumes > 100000 units in next 3
Slide 13: VECV Establishment
VECV Establishment Pithampur Eicher CV Manufacturing Gurgaon VECV HQ Pithampur (SEZ) EEC Gearbox Facility Baggad (MP) Bus Body Plant Pithampur Pithampur VEPDC VEPT Plant Dewas EEC Gear Plant Unit 1 & 2 Bangalore Volvo Trucks HQ Thane EEC Gear plant 11976* Employees strong…. *Includes outsourced empl
Slide 14: Strong drivers for CV industry future growth
Strong drivers for CV industry…future growth • Focus on investment and execution of infrastructure projects. • Growing domestic economy with untapped rural market • Implementation of key reforms like GST, land acquisition • Strict implementation of ban on overloading • Smart cities and focus on sust
Slide 15: CV Industry on recovery path led by HD trucks
CV Industry on recovery path…led by HD trucks CV industry after worst recession lasting three years started recovering in 2014… Figures in brackets in all the graphs above are growth 15
Slide 16: CV Industry on recovery path exports too doing well
CV Industry on recovery path…exports too doing well Figures in brackets in all the graphs above are growth 16
Slide 17: VECV Performance
VECV Performance Revenue( Rs. Cr) Positive operating margin Figures in brackets are growth Figures in brackets are growth even during downturn in CV industry. (6884 (5366 MSEK) MSEK) Figures in brackets are EBIDTA margin) Figures in brackets are EBIDTA margin) Revenue and EBITDA includes other incom
Slide 18: VECV Performance
VECV Performance (In Rs. Cr.) Cumulative Capex Rs. Cr Historical YTD Sep’15 Parameters Cash generation 2418 since inception of JV Capex Incurred since 2633 inception of JV Dividend distributed (6884 440 (5366 MSEK) since inception of JV MSEK) • Almost entire capex expenditure met from internal cash
Slide 19: VECV Performance: market share
VECV Performance LMD truck market share Bus market share 35.0% 32.6% 33.0% 14.9% 15.2% 15.0% 13.5% 30.5% 30.5% 31.4% 30.4% 12.0% 30.0% 26.7% 9.7% 10.0% 25.0% 6.7% 5.7% 20.0% 5.0% 2009 2010 2011 2012 2013 2014 YTD 2009 2010 2011 2012 2013 2014 YTD Oct'15 Oct'15 HD Truck market share 5.0% 4.2%(5366 4.
Slide 20: VECV Exports focus in emerging markets
VECV Exports…..focus in emerging Markets Exports Exports YTD 6000 4894 4393(-10.2%) 4000 2000 0 YTD Oct'14 YTD Oct'15 Figures in brackets are growth Figures in brackets are growth Presence in 25 Countries of South Asia, Middle East and Africa aided by 26 distributors 41000 plus overseas population
Slide 21: Eicher LMD Trucks: steadily gaining market share
Eicher LMD Trucks: steadily gaining market share Eicher Pro 1000 series (5-15 Ton GVW) Eicher Pro 3000 series (10-15 Ton GVW) • Best in class vehicle life time profitability and known as ‘Mileage ka badshah’. • Modern world-class spacious cabin • Designed to provide best in class driving comfort and
Slide 22: Eicher HD Trucks: to leverage full potential
Eicher HD Trucks: to leverage full potential….. Pro 6000 series Pro 8000 series • VEDX Engines (5 and 8 liter) – Volvo Group Euro-6 technology engines adopted for Euro-3 and Euro-4 for Indian needs. • EMS 3.0 - Volvo Group’s Engine Management System ensuring high performance. • Fuel coaching system
Slide 23: Volvo Trucks Range of Products
Volvo Trucks Range of Products Market leader in Premium Truck segment… Pushing the limits on what premium trucks can offer • Among technologically most advanced range in Leadership in niche segments India. • Fuel-efficient and high torque 13-litre engines ranging from 400 to 520 hp. Mining tipper •
Slide 24: Eicher Buses: strong growth
Eicher Buses: strong growth… • Best in class fuel efficiency • In-house bus body fabrication for superior build quality • Superior aesthetics • Bus body code & School bus code compliant school buses with 38 safety features • Parabolic suspension for better comfort 24
Slide 25: Pro Series HD trucks – customer testimonials
Pro Series HD trucks – customer testimonials 25
Slide 26: Pro Series trucks – customer testimonials
Pro Series trucks – customer testimonials 26
Slide 27: VECV Trucks and Buses Distribution network
VECV Trucks and Buses Distribution network Eicher Trucks & Buses Network Volvo Trucks Network • Dealer network 272 nos. • Over 150 touch points. including 10 COCO outlets • Hub and spoke network • Additional 40+ site support model facilities • Sets benchmarks in the • 23 distributors, 156 Eicher ind
Slide 28: After-market delivering value for customer delight
After-market….delivering value for customer delight EGP Shoppe Innovative site support models to delight customers Under commissioning People & process focus through driver engagement, Competence development, Genuine Service Process, e-DCS (Electronic High uptime Dealer Collaboration System) VE Part
Slide 29: World Class Manufacturing set up
World Class Manufacturing set up…. • Most productive plant to produce upto 66,000 trucks scalable to 100,000 trucks. • Cab weld shop with robotic welding and integrated testing facilities. • CED paint shop - best in class e-Rodip German technology with robotic painting. • Highly flexible vehicle ass
Slide 30: Sound Engineering Base
Sound Engineering Base…. Modern test facilities Cabin (5 Poster) test rig Engine development center Virtual reality lab Transmission test rig •Product Development spend is ~2.2% of the Turnover Rear axle test rig Chassis twist test rig Vehicle electrical testing Driveline test rig •Strong Product De
Slide 31: VE Powertrain
VE Powertrain • First engine plant in India producing Euro-6 compliant base engine supplying to Europe. • Exclusive manufacturing hub for medium duty engine requirements of Volvo Group. • Capacity scalable up to 100,000 engines • The 5 and 8 liter engines of this platform delivers power ranging from
Slide 32: Eicher Non-Automotive Engines and Aggregates
Eicher Non- Automotive Engines and Aggregates • Engines and drivelines for Power, Industrial and other off-highway applications • Sales of over 2500 Engines and aggregates • Widely reputed as most reliable and lowest operating cost engines in respective category • Pan India presence in Genset segmen
Slide 33: Other VECV Business Areas
Other VECV Business Areas Components and Engineering Solutions Eicher Engg Components (EEC) Eicher Engg Solutions (EES) • Strategic supplier of drive line components • Comprehensive product development services - Class to Eicher Trucks and Buses, Royal Enfield, A surfacing, CAD, CAE, prototyping, et
Slide 34: To Summarize
To Summarize… • Strongest business model and balance sheet in Indian Commercial Vehicle industry low operating capital/ working capital integrated manufacturing operations at Pithampur for Trucks and Buses • Light and medium duty trucks and buses are performing excellent with consistent growth o
Slide 35: Thank You!
Thank You! = VE COMBIERCIBE:, VERICLES =