Investor Presentation a August 2017 Contents EICHER MOTORS - PowerPoint PPT Presentation

Investor Presentation a August 2017

Contents EICHER MOTORS LIMITED - OVERVIEW ROYAL ENFIELD VE COMMERCIAL VEHICLES EICHER POLARIS FINANCIALS APPENDIX Note: The Company followed “January - December” as its reporting year. The Board of Directors in its meeting held on February 13, 2015 decided to align the reporting year of the Company with the requirements of Companies Act, 2013. Therefore the reporting year for 2015-16 commenced on January 1, 2015 and ended on March 31, 2016, being a period of 15 months. However, to have comparability in the numbers from previous reported years, the presentation captures un-audited financials for FY15-16 (April 1st 2015 to March 31st 2016). INVESTOR PRESENTATION 2 AUGUST 2017

EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION 3 AUGUST 2017

Key Milestones Enters heavy India’s first Forms JV* with AB Volvo duty Commencement tractor rolls out Royal Enfield of Sweden; transfers trucks of business by of Eicher factory motorcycles commercial vehicle segment in Faridabad acquired business to the JV* Eicher Polaris 1959 1984 1991 1993 2002 2005 2008 2012 2015 JV* with JV* with Divests tractor & allied Forms JV* with Mitsubishi Mitsubishi businesses to focus on Polaris Industries Inc. Motors to make ended, enters commercial vehicle & USA, to design, ‘Canter’ trucks motorcycle businesses medium duty manufacture & market bus segment personal vehicles *Joint Venture INVESTOR PRESENTATION 4 AUGUST 2017

Shareholding Pattern (30 th June 2017) Domestic Foreign Institutional Investors Institutional Investors Promoter Group Others 50.56% 31.87% 4.32% 13.23% 20% 40% 50% 90% 100% 0% 10% 30% 60% 70% 80% Eicher Motors Limited Volvo Group Polaris Industries 45.6 Business unit of 50 50 Eicher Motors 54.4 Limited VE Commercial Royal Enfield (RE) Eicher Polaris (EPPL) Vehicles (VECV) RE Brazil (Royal RENA (Royal Enfield Brasil Enfield North Comercio de America Ltd.) Motocicletas Ltda) Eicher Trucks & Buses Motorcycles Business “Multix” 1 st Personal Volvo Trucks Utility Vehicle INVESTOR PRESENTATION 5 AUGUST 2017

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 India Annual 3 year rolling transparency business plan In-depth customer insights Highly professional work & market understanding Strategic quarterly board ethic based on mutual meetings – full review with respect Best-in-class capital management optimization : Very strong HR & IR culture Frugal engineering Strategic quarterly reviews and brand practices &regular monthly Extensive knowledge of operations review Long-term orientation suppliers Operational excellence Product board, Quality Long history of Global quality board, Customer institutionalized CSR & standards satisfaction board, Soft community activities product board (after- Low cost supply chain & market) held every quarter distribution – value chain along with other statutory meetings INVESTOR PRESENTATION 6 AUGUST 2017

Board Eicher Motors Limited VE Commercial Vehicles Eicher Polaris Pvt. Ltd S Sandilya Hakan Karlsson Michael D. Dougherty Non-executive Chairman Chairman Chairman Siddhartha Lal Vinod Aggarwal Pankaj Dubey Managing Director & CEO Managing Director & CEO CEO & Whole Time Director MJ Subbaiah Siddhartha Lal Siddhartha Lal Independent Director Eicher Nominated Director Eicher Nominated Director Prateek Jalan Jacques Michel Lalit Malik Independent Director Volvo Nominated Director Eicher Nominated Director Manvi Sinha Philippe Divry B Govindarajan Independent Director Volvo Nominated Director Eicher Nominated Director Raul Rai Michael Todd Speetzen Eicher Nominated Director Polaris Nominated Director Prateek Jalan Independent Director Lila Poonawalla Independent Director INVESTOR PRESENTATION 7 AUGUST 2017

Business Highlights – FY 2016-17 ^ 0 666,493 95% EML continues to be Motorcycles sold in FY17, Royal Enfield’s market Debt free company 6x in last 5 years share in the mid-size motorcycles* segment 31.3% 33.5% Royal Enfield EBITDA VE Commercial Vehicles margin in FY17, benchmark market share in domestic in automobile industry LMD # segment Source – SIAM and Company Analysis ^ All figures mentioned are Standalone for period 1 st April’16 to 31 st March ’17 INVESTOR PRESENTATION 8 *Mid size motorcycles refers to engine capacity between 250cc – 750cc AUGUST 2017 # Light to Medium Duty (4.9 to 15 ton)

ROYAL ENFIELD INVESTOR PRESENTATION 9 AUGUST 2017

Oldest motorcycle brand in continuous production INVESTOR PRESENTATION 10 AUGUST 2017

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 Continental GT Himalayan Fun, youthful Sense of Definitive Purpose-built for Longest production distinctiveness highway tourer motorcycle exploring the Classic -Sport Himalayas Post-war styling Resolute, Long range & load- unchanged form bearing capabilities Versatile for riding Distinctive Style on- & off-road Timeless design Pride of the For the free- armed forces Fully ground-up spirited explorer with all-new engine Iconic cues – Touring capabilities thump, pinstripes, road presence Traditional & Iconic Urban, Lifestyle and now Adventure INVESTOR PRESENTATION 11 AUGUST 2017

Product Portfolio – Gear All Weather, All Terrain Protective Gear Royal Enfield Protective Gear has continued to expand Launched in October it’s portfolio to support our riders’ aspirations of riding 2012, Royal Enfield Gear out. Whether it is a weekend ride out of the city or an bears quintessential odyssey in the mountains, there is a solution for every Royal Enfield hallmarks – situation. Designed exclusively for the tropical Indian craftsmanship, durability climate which is unlike any other in the world, RE Gear is and attention to detail. truly distinctive and one-of-its-kind. This year, we launched our first thematic Royal Enfield Urban Gear Inspiration Gear campaign, which resonated deeply with the target Inspired by a way of life that celebrates the relationship of riders with group, owing to its realistic portrayal of gear, on 3 their machines. Meant to take their passion for motorcycling to places different extreme riding terrains. where they can't take their motorcycles, Royal Enfield Urban Gear is designed for riders by riders. A rich community has grown around the brand transcending one’s journey of individuality into a deeper pursuit. Urban Gear from Royal Enfield celebrates this motorcycling way of life. INVESTOR PRESENTATION 12 AUGUST 2017

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 6,66,493 7,00,000 80% 70% to “ UCE ” 68% 70% 6,00,000 57% 5,08,099 60% 52% Launch of 5,00,000 “ Classic ” 50% 42% 4,00,000 3,02,592 40% 3,00,000 30% 20% 31% 1,78,121 18% 2,00,000 20% 13% 1,13,432 52,576 7% 74,626 1,00,000 51,955 43,298 36,786 10% 32,642 1% 0 0% CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 FY16 FY17 RE Volumes Y-o-Y Growth Note: Standalone volumes for Royal Enfield 24% Volumes grew by 62% CAGR during the period CY10 to FY17 2,48,455 2,00,861 4M'17 4M'18 INVESTOR PRESENTATION 13 AUGUST 2017

Financial Highlights – Eicher Motors Ltd. (Standalone) All figures are for Eicher Motors Limited Standalone (in Rs. cr unless specified) Total Revenue Sales Volume EBITDA & Margins (in nos) Total revenue from operations (net of excise duty) CAGR 51.7% 35% 31.3% 31.4% 30.8% CAGR 56.5% 27.6% 30% 25% 20% 13.9% 11.9% 15% 2,206 6,66,493 7,038 24.8% 10% 5,08,099 28.41% 1,441 5,227 5% 628 480 80 2,000 1,47,483 1,83,998 145 1,557 0% 1,049 74,626 1,13,432 671 CY11 CY12 FY16 FY17 Q1FY17 Q1FY18 CY11 CY12 FY16 FY17 Q1FY17 Q1FY18 CY11 CY12 FY16 FY17 Q1FY17 Q1FY18 The figures in % indicate EBITDA Margins EBITDA Margin = EBITDA/Total revenue from operations (net of excise duty) Profit After Tax Market share* (India) Dealer Network (India) (in nos) CAGR 61.7% 706 1,560 25.4% 675 24.0% 46.64% 22.2% 566 21.0% 527 1,016 249 494 198 6.8% 337 4.7% 146 125 CY11 CY12 FY16 FY17 Q1FY17 Q1FY18 CY11 CY12 FY16 FY17 Q1FY17 Q1FY18 CY11 CY12 FY16 FY17 Q1FY17 Q1FY18 Note: Figures for FY16 and FY17 are as per IND AS. Figures from CY11 and CY12 are as per IGAAP. INVESTOR PRESENTATION 14 * Market share in 150cc and above segment AUGUST 2017 Source - SIAM