Eicher Motors Limited · NSE:EICHERMOT
Eicher Motors — Investor Presentation (February 2020)
68 slides from Eicher Motors's investor presentation, Feb 6, 2020
Slide 1: Exchange intimation letter for investor presentation
February 6, 2020 Online intimation/submission The Secretary The Secretary BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street Plot No.C/1, G Block Mumbai-400 001 Bandra Kurla Complex, Bandra (E) Security Code: 505200 Mumbai-400 051 Symbol
Slide 2: Investor Presentation February 2020
Investor Presentation a February 2020
Slide 3: Contents
Contents EICHER MOTORS LIMITED - OVERVIEW ROYAL ENFIELD VE COMMERCIAL VEHICLES FINANCIALS APPENDIX Note: The Company followed “January-December” as its reporting year till December 2014. The Board of Directors in its meeting held on February 13, 2015 decided to align the reporting year of the Compan
Slide 4: Eicher Motors Limited - Overview
EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION February 2020 3
Slide 5: Key Milestones
Key Milestones India’s first Enters heavy Forms JV* with AB Volvo tractor rolls out Royal Enfield duty of Sweden; transfers Shutdown of of Eicher factory motorcycles trucks commercial vehicle operations of in Faridabad acquired segment business to the JV* Eicher Polaris 1959 1984 1991 1993 2002 2005
Slide 6: Shareholding Pattern (31st December 2019)
Shareholding Pattern (31st December 2019) Foreign Institutional Domestic Investors Institutional Promoter Group Investors Others 49.28% 31.19% 8.21% 11.32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Eicher Motors Limited (EML) Volvo Group Business Unit 45.6 54.4 VE Commercial Vehicles (VECV) Royal
Slide 7: Eicher Management Philosophy
Eicher Management Philosophy Break-through emerging Established Corporate Strong Values market business model Governance An evolved business model Fully empowered Corporate conduct rooted with 50+ years of management teams in highest standards of experience in automotive ethics, integrity & space in
Slide 8: Board
Board Eicher Motors Limited VE Commercial Vehicles S Sandilya Hakan Karlsson Non-executive Chairman Chairman Siddhartha Lal Siddhartha Lal Managing Director Director Vinod K. Dasari Vinod Aggarwal Whole Time Director & CEO - Royal Enfield Managing Director & CEO Vinod Aggarwal Jan Gurander Non-Execu
Slide 9: Business Highlights – FY 2018-19
Business Highlights – FY 2018-19^ 0 823,828 >90% EML continues to be Motorcycles sold in FY19, Royal Enfield’s market Debt free company 7x in last 7 years share in the mid-size motorcycles* segment 30.1% 29.4% Royal Enfield EBITDA VE Commercial Vehicles margin in FY19, benchmark market share in dome
Slide 10: Royal Enfield
ROYAL ENFIELD INVESTOR PRESENTATION February 2020 9
Slide 11: Oldest Motorcycle Brand in Continuous Production
Oldest Motorcycle Brand in Continuous Production INVESTOR PRESENTATION February 2020 10
Slide 12: Product Portfolio – Motorcycles
Product Portfolio – Motorcycles Royal Enfield range of motorcycles is able to address a unique mix of appeals – from its traditional customer base to urban, aspiration-driven youth Bullet Classic Thunderbird Himalayan Continental GT Interceptor Longest production Sense of Definitive highway Purpose-
Slide 13: Launch of BS VI Compliant Motorcycles
Launch of BS VI Compliant Motorcycles Lowered servicing cost by extending warranty and Enhanced riding experience roadside assistance to 3 years Classic 350 BS VI Himalayan BS VI First motorcycle under the Unit Construction Engine (UCE) Himalayan BS VI comes with Switchable ABS that allows a platfor
Slide 14: “Make Your Own” - Personalisation of Motorcycles
“Make Your Own” - Personalisation of Motorcycles with Factory Fitted Accessories Customisation and personalisation at the core of a ‘Pure Motorcycling’ experience “Make Your Own”, a first-of-its-kind initiative allowing a buyer custom build a motorcycle with choice of accessories at the time of book
Slide 15: Product Portfolio – Apparel Business
Product Portfolio – Apparel Business Extension of One’s Personality The Madras Stripes One brush, two strokes and a Royal Enfield Apparels distinctive identity that has made aim to become an Royal Enfield Bullet stand out for extension of the owners’ years. Launched a collector’s edition - personali
Slide 16: Launch of “Classic” in 2009 was an Inflection Point
Launch of “Classic” in 2009 was an Inflection Point Launch of new “Thunderbird” and Launch of Launch of “apparel & accessories” “Continental GT” “Himalayan” Transition of all models 900,000 70% 820,492 823,828 80% to “UCE” 68% 800,000 70% 700,000 57% 666,493 Launch of 52% 60% 600,000 508,099 “Classi
Slide 17: Financial Highlights – Eicher Motors Ltd. (Standalone)
Financial Highlights – Eicher Motors Ltd. (Standalone) All figures are for Eicher Motors Limited Standalone (in Rs. cr unless specified) Total Revenue Sales Volume (in Nos) EBITDA & Margins Total revenue from operations (net of excise duty) 31.3% 31.9% 30.1% 30.8% 35% 25.4% 30% 25% 20% 15% 10% 666,4
Slide 18: Our Footprint
Our Footprint UK USA Austria Milwaukee France Spain Portugal Mexico UAE South Korea Thailand Vietnam Colombia Philippines Ecuador Malaysia Royal Enfield Exclusive Indonesia Stores (Overseas) - 67 Argentina – 5 | Australia – 1 | Austria – 1 | Brazil Brazil – 6 | Colombia – 8 | Ecuador – 3 | Sao Paulo
Slide 19: Industry Overview
Industry Overview Motorcycle Volumes (India) (in mn) India - largest motorcycle market in world 12.6 13.6 10.7 10.7 11.1 FY15 FY16 FY17 FY18 FY19 Growth rate of various motorcycle segments 24.9% 20.6% 15.1% 9.5% 7.6% 8.3% 6.6% Indicates growing premiumisation of motorcycle market -0.8% -1.8% -2.1% F
Slide 20: Opportunity – Domestic Market
Opportunity – Domestic Market India to become a US$4.72 trillion (current market India’s demographic profile (year-2015) price) economy by 2024 1% US$ 4.72 Tn. 9% Age Group 28% US$ 1.99 Tn. 7.5% 0-14 US$ 2.71 Tn. to 15-59 7.3% 7.7% 60+ 7.1% 80+ 2013 - 15 2016 - 18 2020 - 24f 62% Indian Economy: A sh
Slide 21: Opportunity – International Business
Opportunity – International Business The Oddity of the Motorcycle Industry Globally… is an opportunity Most Industries Developing CAGR : 2012-18 Motorcycles > 750cc Markets -2% Industry Premium 250-750cc 3% -2% Mid Only Mid-sized motorcycle segment <250cc (250-750cc) has grown in the recent Mass Com
Slide 22: Preparing for Future Growth
Preparing for Future Growth All the manufacturing facilities upgraded to produce BS VI compliant motorcycles Capacity Production ramp-up is underway at Phase-2 of plant at Vallam Vadagal near Chennai Technology centres in Chennai and the UK Product New Product Introduction (NPI) framework in place t
Slide 23: Technology Centres
Technology Centres UK Chennai UK Tech Centre at Bruntingthorpe to be a hub for the product The Chennai facility will have the engineering and design development and research activities, driving the mid-range teams working under one roof and will house state-of-the-art motorcycle platforms. engine, c
Slide 24: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives Rider Mania 2019 Himalayan Odyssey 2019 Rider Mania is Royal Enfield’s most definitive motorcycle The 16th edition of Royal Enfield ‘Himalayan Odyssey’ saw 60 festival and largest gathering of RE enthusiast in the world. motorcyclists ride for 15 days over 2
Slide 25: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives Royal Enfield Himalayan Australian Motorcycle Festival Adventure Rongbuk 2019 2019 First-of-it’s-kind Indian manufacturer led expedition that is The annual Australian Motorcycle Festival was held at Lang designed to take the riders to the base camp of three
Slide 26: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives Hot Rod and Moto Expo 2019 - Kustomfest 2019 - Indonesia Thailand Kustomfest is Asia’s largest customization event, held every Unveiled two new Twin based custom motorcycles at Hot Rod, year in Jogjakarta (Indonesia). It is a weekend dedicated to the biggest
Slide 27: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives International Motorcycle Shows - The Bike Shed Festival 2019 Long Beach and New York Bike Shed Festival, a event that celebrates motorcycles on the Royal Enfield participated at Long Beach and New York move; on track and on the dirt was held in October 2019
Slide 28: Brand Building Activities and Initiatives
Brand Building Activities and Initiatives Salao Duas Rodas – EICMA 2019 Sao Paulo, Brazil Royal Enfield participated in the 77th edition of International Salao Duas Rodas - one of the two largest motorcycle events Motorcycle and Accessories Exhibition (EICMA). Six new custom in all of Brazil which h
Slide 29: Passion with Responsibility
Passion with Responsibility Committed to drive an active agenda towards the sustainability and the environment at large Successfully organised Rider Mania and Himalayan Odyssey with zero single-use plastics. With a focus on ‘Leave every place better’, the team collected over 3,000 kgs of recyclable
Slide 30: Awards
Awards The recently launched Royal Enfield Interceptor 650 won the Indian Motorcycle of The Year ("IMOTY") 2019 award - the most prestigious award of the Indian 2-Wheeler Industry The Interceptor 650 won the Best Modern Classic Middle-Weight award at Thailand Bike of the Year 2019 Royal Enfield Inte
Slide 31: Royal Enfield Vintage – Opportunity in Pre-owned Motorcycle Segment
Royal Enfield Vintage – Opportunity in Pre-owned Motorcycle Segment Vintage Store opened in Chennai, Bangalore, Delhi, Mumbai, Patna, Kanpur, Indore, Patiala, Hyderabad • Pre-owned, refurbished and restored motorcycles - a first-of-its-kind in two-wheeler industry • Accessible, hassle-free, transpar
Slide 32: Royal Enfield – Studio Stores
Royal Enfield – Studio Stores • A unique compact store format • 3S store offering Sales, Service and Spares • Fully complaint with RE’s brand identity • Provide greater accessibility to sales and service in up-country markets • 500 studio stores opened till October 2019 INVESTOR PRESENTATION Februar
Slide 33: Royal Enfield Garage Café, Goa
Royal Enfield Garage Café, Goa A celebration of exploration - through motorcycling, food, entertainment and personal expression Royal Enfield has set up its first Royal Enfield Garage Cafe in Arpora - Baga, Goa. The cafe is an inclusive and engaging space that reflects Royal Enfield motorcycling way
Slide 34: Royal Enfield Garage Café, Goa
Royal Enfield Garage Café, Goa A unique space that embodies the pure motorcycling culture and lifestyle INVESTOR PRESENTATION February 2020 33
Slide 35: Royal Enfield Opens Store in Milan, Italy
Royal Enfield Opens Store in Milan, Italy Royal Enfield expanded its footprint in Europe with the opening of its first exclusive store in Italy INVESTOR PRESENTATION February 2020 34
Slide 36: Royal Enfield in Argentina, its Third Country in Latin America
Royal Enfield in Argentina, its Third Country in Latin America Flagship store in the heart of Buenos Aires INVESTOR PRESENTATION February 2020 35
Slide 37: Royal Enfield Store in Chiang Mai, Thailand
Royal Enfield Store in Chiang Mai, Thailand Royal Enfield’s 3rd store in Thailand and 1st outside of Bangkok INVESTOR PRESENTATION February 2020 36
Slide 38: Royal Enfield store in South Korea
Royal Enfield store in South Korea Flagship store in Seoul INVESTOR PRESENTATION February 2020 37
Slide 39: Royal Enfield’s Store in Saket, New Delhi
Royal Enfield’s Store in Saket, New Delhi A fusion between a living room and a The Saket store is our finest garage, the store stands testament to the example of Pure Motorcycling yet union of man, machine and terrain INVESTOR PRESENTATION February 2020 38
Slide 40: VE Commercial Vehicles
VE COMMERCIAL VEHICLES INVESTOR PRESENTATION February 2020 39
Slide 41: VECV was Established in 2008 with Strong Parentage
VECV was Established in 2008 with Strong Parentage EICHER VOLVO STRENGTHS STRENGTHS Strong player in LMD Global segment VECV expertise Specialist skills and vision Leadership in product technology experience in developing “To be recognised as low cost, better the industry leader Good infrastructure
Slide 42: Milestones
Milestones AUGUST 2008: Signing of definitive 2009: Inauguration of the new gear 2009: Launch of CSI-1 quality agreements component plant at Dewas improvement initiative Jul-Aug 2008: Commencement of JV 2012: CED paint shop inauguration 2010: Launch of VE-series of Eicher 2012: VEPDC inauguration HD
Slide 43: Milestones
Milestones 2013: EEC gear plant, Dewas Unit II 2014: Volvo Trucks launch of new range 2014: Inauguration of Eicher retail inauguration of products comprising FH, FM and FMX excellence center (VECV academy) 2016: Launch of Eicher 2015: Inauguration of 2017: Inauguration of Transmission 2017: Pro 5000
Slide 44: Volumes
Volumes Eicher Light to Medium Eicher Heavy Duty Total CV* Volumes(in nos) Duty Trucks (3.5-15 tonne) (in nos) Trucks (16 tonne +) (in nos) 11,109 12,372 13,281 58,604 65,932 72,969 51,959 37,092 26,027 33,010 37,706 26,853 20,735 9,689 5,547 FY17 FY18 FY19 9MFY19 9MFY20 FY17 FY18 FY19 9MFY19 9MFY20
Slide 45: Market Share
Market Share Eicher Heavy Duty Trucks Eicher Light and Medium Duty Trucks (excluding exports) In % (excluding exports) In % 31.5 31.3 4.9 29.4 29.8 28.7 4.9 4.6 4.5 4.5 FY17 FY18 FY19 9MFY19 9MFY20 FY17 FY18 FY19 9MFY19 9MFY20 Buses (excluding exports) In % VECV market share (including exports) In %
Slide 46: Financial Highlights – VE Commercial Vehicles
Financial Highlights – VE Commercial Vehicles All figures are for VE Commercial Vehicles (in Rs. Crore unless specified) Total Revenue* Total revenue from operations (net of excise duty) 8,553 10,049 11,600 8,391 6,423 FY17 FY18 FY19 9MFY19 9MFY20 EBITDA & Margin* Profit After Tax 1200 20% 18% 1000
Slide 47: India Facilities – Manufacturing and Operations
India Facilities – Manufacturing and Operations Baggad *Abbreviation: EEC - Eicher Engineering Components Number of employees(VE Commercial Vehicle) – 5,079* VEPT - VE Power Train SEZ - Special Economic Zone (*permanent) (as of December 2019) HQ - Head Quarter INVESTOR PRESENTATION February 2020 46
Slide 48: VECV Trucks and Buses Distribution network
VECV Trucks and Buses Distribution network Eicher Truck & Bus Network Volvo Truck & Bus Network Dealer network 296 nos. including 14 COCO* outlets Hub and spoke network model 25 distributors, 98 Eicher Genuine Parts Shoppe and 1,904 multi-brand Sets benchmarks in the industry for vehicle uptime part
Slide 49: VECV Edge – Opportunities / Discontinuities
VECV Edge Opportunities / Discontinuities VECV EDGE Investing early in fully-built vehicles & Stricter emission & Safety emission norms Building products apt for right-load & Stronger regulations for overloading mild over-load conditions Better infrastructure leading to higher Building more reliable
Slide 50: VECV Edge – Opportunities / Discontinuities
VECV Edge Opportunities / Discontinuities VECV EDGE Availability of trained drivers Driver training and regional academy Developing products aligned with Higher dependence on logistics evolving customer needs – Pro series Increased pressure on initial acquisition Institutionalization of cost reducti
Slide 51: Eicher LMD Trucks: A Significant Player
Eicher LMD Trucks: A Significant Player Eicher Pro 1000 series (3.5-15 Ton GVW) Volumes (in nos) 34,688 25,905 Eicher Pro 3000 series (12-15 Ton GVW) 10MFY19 10MFY20 INVESTOR PRESENTATION February 2020 50
Slide 52: Eicher LMD Trucks: Launch of Pro 2000 Series
Eicher LMD Trucks: Launch of Pro 2000 Series Unveiled India’s first BS VI Designed to deliver significantly higher profitability, compliant CV range enhanced reliability, safety, comfort and efficiency Commercial launch of existing BS IV range in June 2019 Introduction of many industry-first feature
Slide 53: Eicher HD Trucks: To Leverage Full Potential
Eicher HD Trucks: To Leverage Full Potential….. Volumes (in nos) Pro 8000 series 13,110 7,213 10MFY19 10MFY20 Pro 6000 series Steadily growing market share The ‘Pro’ series is gaining more traction with increased interest in technologically advanced trucks. The Value Trucks are witnessing good accep
Slide 54: Volvo Trucks: Market leader in Premium Truck segment
Volvo Trucks: Market leader in Premium Truck segment Volumes (in nos) Leadership in niche segments 935 937 10MFY19 10MFY20 FMX 10X4 (55 Ton dump trucks) FH 520 is the flagship model of the Volvo truck range Mining tipper Tunnel tipper Over dimensional cargo Source - SIAM INVESTOR PRESENTATION Februa
Slide 55: Eicher Buses: Steady Market Share in a Challenging Environment
Eicher Buses: Steady Market Share in a Challenging Environment Volumes (including exports) (in nos) 9,132 8,581 10MFY19 10MFY20 Electric Pro E Source - SIAM INVESTOR PRESENTATION February 2020 54
Slide 56: Tapping Global Potential
Tapping Global Potential Exports (in nos) Market share gain across all regions of international business. Over 22 new products/variants introduced including completion of BS IV migration in Sri Lanka. Dispatched first ever left hand drive Heavy Duty product – Pro 6025T. Volume gain in Middle East re
Slide 57: World Class Manufacturing set up
World Class Manufacturing set up... Capacity to produce up to 90,000 trucks from single plant; new plant establishment under progress to take capacity to 130,000 per annum Highest ever production of 73,619 vehicles in FY19, a growth of 12.7% over FY18 Highly flexible vehicle assembly lines with righ
Slide 58: VE Powertrain
VE Powertrain First engine plant in India producing Euro-6 compliant base engine Exclusive manufacturing hub for medium duty engine requirements of Volvo Group Current capacity of 50,000 engines, scalable up to 100,000 engines Best executed project with Volvo Group technology with frugal approach Th
Slide 59: New Plant in Bhopal, Madhya Pradesh
New Plant in Bhopal, Madhya Pradesh Current Status ETB plant capacity 90,000, deliverable 80,000 with seasonal variations. Proposed Project commenced in October 2018 with proposed capacity of 40,000 per annum Overall project on track for 2020-21 start Planned capital outlay of around Rs. 400 crores
Slide 60: Other VECV Business Areas
Other VECV Business Areas Eicher Engineering Components (EEC) Strategic supplier of drive line components and aggregates for VECV, The Volvo group, exports and strategic domestic OEM customers Production facilities at: Thane, Dewas and SEZ, Pithampur Annual turnover of Rs.1,008 Crores in FY19 INVEST
Slide 61: Other VECV Business Areas
Other VECV Business Areas Eicher Non - Automotive Engines Presence in 10 countries, Genset Assembly in UAE & South Africa, pan India presence in Genset segment Reputed as most reliable and lowest operating cost engines, established in material handling segment Engines and drivelines for power, indus
Slide 62: Financials
FINANCIALS INVESTOR PRESENTATION February 2020 61
Slide 63: Quarterly Financial Highlights (Standalone)
Quarterly Financial Highlights (Standalone) Eicher Motors – Standalone* performance in last 5 years… (in Rs. Cr) 900 35.0% 31.8% 31.4% 31.4% 31.9% 31.7% 32.3% 32.3% 30.8% 31.3% 30.6% 800 29.6% 29.5% 28.6% 30.0% 27.7% 27.8% 700 26.1% 26.4% 25.9% 25.0% 25.0% 25.2% 23.6% 25.0% 600 500 20.0% 400 15.0% 3
Slide 64: Thank You
Thank You Get Social : Royal Enfield Royal Enfield INVESTOR PRESENTATION VE Commercial Vehicles February 2020 63
Slide 65: Appendix
APPENDIX INVESTOR PRESENTATION February 2020 64
Slide 66: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (In Rs. Cr.) Particulars Mar’18 Mar’19 Sept’19 Net Fixed Assets (including CWIP and Pre-operative Expenditure) 1,835 2,324 2,592 Investments 5,581 4,923 5,263 Other Non Current Assets 186 180 108 Current Assets Inventories 395 633 638 Debtors 68 90 126 Cash and Bank Bala
Slide 67: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) (In Rs. Cr.) Profit & Loss Account FY18 FY19 9MFY20 Sales Volume: Two Wheelers (Nos.) 820,121 822,724 534,499 Total revenue from operations (net of excise) 8,965 9,797 6,945 Manufacturing and other expenses 6,157 6,894 5,197 Earnings before interest, depreciati
Slide 68: Glossary
Glossary • 7M – 7 months starting April to October • JV – Joint Venture • 9M – 9 Months starting April to December • LCV – Light Commercial Vehicles • 10M – 10 Months starting April to January • LMD – Light to Medium Duty • 15M – 15 months ended on 31st March 2016 • M&HCV – Medium and Heavy Commerci
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