Greaves Cotton Limited · NSE:GREAVESCOT
Greaves Cotton — Investor Day (November 2023)
38 slides from Greaves Cotton's investor day presentation, Nov 28, 2023
Slide 1: Revised Investor Presentation intimation to exchanges
28th November, 2023 The Manager - Listing The Manager - Listing BSE Limited National Stock Exchange of India Limited BSE Code - 501455 NSE Code - GREAVESCOT Dear Sir/Madam, Sub: Revised Investor Presentation In continuation to the intimation dated 27th November, 2023, please find enclosed the revise
Slide 2: Capital Market Day
Capital Market Day Nov 28, 2023
Slide 3: Greaves Ecosystem
Greaves Ecosystem Photo Photo • Applications in multiple • 100% focused on EV • E2E tech services providing • Extensive last mile • India’s leading EV multi- financing sectors: automotive, industrial, cutting-edge engineering, mobility experience & brand retail network (3S) infrastructure, construct
Slide 4: Greaves Cotton: Democratising Sustainable Mobility
Greaves Cotton: Democratising Sustainable Mobility Dr. Arup Basu – MD Mr. Sanjay Behl – CEO Mr. Narasimha Jayakumar - CEO E2W and E3W vehicles Spares and Service • Fuel-agnostic Engines and Engine Components Franchise Multi Brand EV Outlets Retail and Business Users • Drive Controls (Rods, Cables, L
Slide 5: Greaves Engineering
GREAVES GREAVES ENGINEERING
Slide 6: Megatrends: Urbanisation, Sustainability and Digital Transformation
Megatrends: In This Decade Changes Will Be Led By Urbanisation, Sustainability (energy transition) and Digital Transformation 5
Slide 7: Sectors Where-We-Play
Sectors Where-We-Play: Transportation, Farm, Industrial, Infrastructure & Aerospace 6
Slide 8: Geographies Where-We-Play: India, USA, EU
Geographies Where-We-Play: India, USA, EU 7
Slide 9: Sources Of Our Right-To-Win
Sources Of Our Right-To-Win From “Customised Products” to (7) Business Models “Customised Solutions” (6) Competence & • From largely Diesel to Fuel-Agnostic Capability Portfolio • From largely Mechanical to Mechanical + Mechantronics + Electronics (5) Understanding of operational duty cycles Extendi
Slide 10: Drivers Of Current And Future Profit Pools
Drivers Of Current And Future Profit Pools Ahead of Regulations OBD II -------------------------------------------------------------------------------------------------------------------------------------------------------------- Fuel-Agnostic --------------------------------------------------------
Slide 11: Greaves Retail
GREAVES RETAIL GREAVES RETAIL
Slide 12: Content
Content • Greaves Retail: Purpose and Strategy • Overview – Key business segments and business model • Competitive Advantages • Strategic growth areas 11
Slide 13: Business Purpose
Business Purpose: “To Enable Millions Of Livelihoods And Empowering Businesses Through Clean Mobility Solutions And Services.” End Fleet Owners Customers Buy a vehicle Access financing Sell Used Service vehicle Vehicle, Charge vehicle Re-cycle batteries Buy Insurance, AMCs Access spares Distributors
Slide 14: Greaves Retail: Financials (last 6Qs)
Greaves Retail: Financials (last 6Qs): Steady Growth And Profitability Business Model Asset Light De-risked portfolio Strong FCF High Tech Driven EBITDA% ROCE International peers FY22 revenue: $1bn; EBIDTA multiple 27x; Market cap (Mar’23): $3.8bn 13
Slide 15: Greaves Retail: Diversified Portfolio That Is Fuel Agnostic And Future Ready
Greaves Retail: Diversified Portfolio That Is Fuel Agnostic And Future Ready • Spares distribution (multi-brand) covering 3W, 2W, e3W (E-rickshaw and E-Auto), small commercial vehicles (SCV) • Domestic and Exports (SAARC, Africa, LATAM etc.) • Deep distribution network Tier 1/2/3 markets (200+ distr
Slide 16: Greaves Retail: Competitive Advantages
Greaves Retail: Competitive Advantages Unique Capabilities / Resources Eco-system relationships Core Value Proposition: High Asset Uptime First Mover Advantage Brand Sourcing Supply Chain Analytics Technology Proprietary / Exclusive Fuel agnostic Tier 2/3/4 reach - India, suppliers International mar
Slide 17: Investing In Best-in-class Technology
Investing In Best-in-class Technology: Drive Better Efficiencies, Sales Throughput And Leverage Analytics GS Vehicle Supplier GR HQ Distributor Retailer/GC Mechanic OEM Warehouse Owner Distributor + Retailer Greaves Uphaar App E-commerce Smart Warehouse Management System Management Smart Dealer Q1 M
Slide 18: Strategic Growth Areas: Greaves Retail
Strategic Growth Areas: Greaves Retail Multi-brand parts Exports EV Solutions (EV parts, batteries, charging solutions and EV kits) EMS for Telecom Construction equipment Excel synergies 17
Slide 19: Greaves Electric Mobility
GREAVES ELECTRIC MOBILITY ELECTRIC GREAVES MOBILITY
Slide 20: Core Values Of Greaves Electric Mobility
Core Values Of Greaves Electric Mobility Championing affordable, green E-mobility while striving for global impact and brand leadership. Purpose Vision Mission • Democratise smart, sustainable • To be the go-to brand that • Enable every person to shift to mobility and do our bit to heal becomes the
Slide 21: Electric Mobility Portfolio
Electric Mobility Portfolio Prominent player with a footprint in the 2-wheeler, e-rickshaw, and 3-wheeler sectors. Brand Sector Business Model E-Scooters B2C / B2B / Swap E-Rickshaws B2C B2C / B2B 3-Wheelers 20
Slide 22: Portfolio of Wheelers
PORTFOLIO OF 2 & 3 WHEELERS 2W 2W Existing Upcoming REO (Swap / LT) Slow Speed Sporty City speed High speed scooter for City speed Stylish and Connected Personal scooter for family young families & family scooter for the Scooter the youth scooter Millennials scooter discerning 3WExisting 3WUpcoming
Slide 23: GEM Partners With Abdul Latif Jameel
GEM Partners With Abdul Latif Jameel Agreement for total investment of up to US$220 Million. Abdul Latif Jameel Strategic Rationale Background • Abdul Latif Jameel is an independent family- • Accelerate the Greaves Electric Mobility EV owned, diversified global investor and operator. penetration of
Slide 24: Integrated Excellence: Supply Chain, Manufacturing, Service, And Sales
Integrated Excellence: Supply Chain, Manufacturing, Service, And Sales Robust supply chain, efficient manufacturing, and exemplary service and sales capabilities Supply Chain Manufacturing Service & Sales Hyper local GTM strategy High degree of localisation. Target cities shortlisted ‘Make in India’
Slide 25: GEM Enjoys Strong Right To Win
GEM Enjoys Strong ‘Right To Win’ To Ensure Successful Business Plan Delivery 2W Business 3W Business • First mover advantage [200k+ vehicles on road] with 400+ • Threshold viable play with complete portfolio of ICE 3W, E- dealers covering 80%+ market centres by Scooter sales Rick and E3W • 10-15% RM
Slide 26: GEM | Subsidy Update
GEM | Subsidy Update • Greaves Electric Mobility Private Limited (GEMPL) is a proud Indian company and a leader in India's rapidly expanding EV sector. GEMPL was one of the first companies to enthusiastically support and deliver on the Government's localization vision. Our legacy of over 160 years r
Slide 27: Financials H1 FY24
GREAVES | Financials H1 FY24
Slide 28: H1 FY24 Financial Highlights
H1 FY24 Financial Highlights Company reported consolidated revenue of Rs. 1,295 crore for H1FY24 GCL H1 FY24 highlights Revenue Rs. 855 Cr ▪ GCL Standalone Revenue at Rs. 855 Cr, up by 14% Y-o-Y Excel ▪ EBITDA at Rs. 108 Cr, up by 78% Y-o-Y. Greaves Revenue Electric ▪ Greaves Engine + Excel Revenue
Slide 29: Diversification Strategy Positively Contributing to Business Growth
Diversification Strategy Positively Contributing to the Business Growth GCL Group Revenue at Rs. 727 Cr 229 374 486 621 660 699 514 827 569 727 68 383 281 318 39 207 237 127 181 141 90 15 379 374 374 365 437 396 459 214 284 302 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GC
Slide 30: Financial Snapshot
Financial Snapshot Particulars (Consolidated) Q2 Growth (%) Q1 Growth (%) H1 Growth (%) (Rs. Cr.) FY24 FY23 Y-o-Y FY24 Q-o-Q FY24 FY23 Y-o-Y Income from Operations 727 699 4% 569 28% 1,295 1,359 (5%) RMC (%) 69.3% 73.3% 70.8% 69.9% 73.5% Employee Cost 73 50 72 144 96 Other Expenses 105 94 108 213 18
Slide 31: GCL Business Segment
GCL Business Segment Greaves Engines Revenue 10.5% 296 313 EBITDA Margin 253 240 257 7.8% 226 6.7% 5.5% 2.9% 3.5% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Greaves Retail Revenue 146 EBITDA Margin 140 140 139 20.7% 20.9% 134 19.8% 17.8% 17.9% 122 16.5% Q1FY2
Slide 32: GCL + Excel Business Segment
GCL + Excel Business Segment Greaves Cotton Standalone EBITDA Margin 13.9% Revenue 437 459 374 374 365 396 11.9% 11.3% 10.2% 8.9% 7.3% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Greaves Cotton + Excel Revenue 527 EBITDA Margin 16.3% 437 435 13.5% 374 374 365
Slide 33: Business Division Disclosures: Greaves Engines
Business Division Disclosures Greaves Engines Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 (Rs. Cr.) Revenues 253 240 226 296 257 313 EBITDA 7 8 12 23 17 33 EBITDA Margin (%) 2.9% 3.5% 5.5% 7.8% 6.7% 10.5% Greaves Retail Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 (Rs. Cr.) Revenues 122 134 140 140 139 1
Slide 34: Business Division Disclosures: Excel
Business Division Disclosures Excel Q1FY24 Q2FY24 (Rs. Cr.) Revenues 39 68 EBITDA 14 22 EBITDA Margin (%) 36.6% 33.0% GCL + Excel Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 (Rs. Cr.) Revenues 374 374 365 437 435 527 EBITDA 27 33 37 52 59 86 EBITDA Margin (%) 7.3% 8.9% 10.2% 11.9% 13.5% 16.3% E Mobili
Slide 35: Leverage Profile
Leverage Profile Consolidated (Rs. Cr.) Sep - 22 Mar - 23 Sep - 23 Standalone (Rs. Cr.) Sep-22 Mar-23 Sep-23 Cash & Cash Equivalent 1,336 1,145 901 Cash & Cash Equivalent 466 559 416 Short Term Debt 18 3 53 Short Term Debt NIL NIL NIL Long Term Debt 50 NIL 0 Long Term Debt NIL NIL NIL Total Debt 68
Slide 36: Segment Volumes
Segment Volumes Growth Growth Growth Q2 Q1 H1 Volumes (Units) (%) (%) (%) FY24 FY23 Y-o-Y FY24 Q-o-Q FY24 FY23 Y-o-Y Engines Auto 24,968 16,207 54% 16,169 54% 41,137 32,319 27% Non-Auto 11,199 9,563 17% 11,239 0% 22,438 19,673 14% Engines* 36,167 25,770 40% 27,408 32% 63,575 51,992 22% E2W 15,616 30
Slide 37: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Greaves Cotton (“Greaves” or the Company) future business developments an
Slide 38: Thank You
SOUND FUNDAMENTALS| STABLE CASHFLOW | AGILE STRUCTURE GROWING BRANDS | GROWING RETAIL FOOTPRINT | GROWING CUSTOMER BASE MOBILITY SOLUTIONS | MOVING PEOPLE | MOVING CARGO THANK YOU REGISTERED OFFICE For further information, please contact Greaves Cotton Limited Anvita Raghuram / Bhushan Khandelwal J-