Investor Presentation a November 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 November 2017
EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION 3 November 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 Eicher Polaris in Faridabad acquired business to the JV* 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 medium duty motorcycle businesses manufacture & market bus segment personal vehicles *Joint Venture INVESTOR PRESENTATION 4 November 2017
Shareholding Pattern (30 th September 2017) Domestic Foreign Institutional Institutional Investors Investors Promoter Group Others 4.49% 12.87% 50.55% 32.09% 0% 10% 20% 30% 40% 50% 70% 80% 90% 100% 60% 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) “Multix” 1 st Personal Eicher Trucks & Buses Motorcycles Business Volvo Trucks Utility Vehicle INVESTOR PRESENTATION 5 November 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 ®ular 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 November 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 November 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 LMD # segment in automobile industry 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 November 2017 # Light to Medium Duty (4.9 to 15 ton)
ROYAL ENFIELD INVESTOR PRESENTATION 9 November 2017
Oldest motorcycle brand in continuous production INVESTOR PRESENTATION 10 November 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 Sense of Definitive Fun, youthful Purpose-built for Longest production exploring the motorcycle distinctiveness highway tourer Himalayas Classic -Sport Resolute, Post-war styling Long range & load- Versatile for riding unchanged form bearing capabilities Distinctive Style on- & off-road Timeless design Pride of the For the free- Fully ground-up armed forces spirited explorer with all-new engine Iconic cues – Touring capabilities thump, pinstripes, road presence Traditional & Iconic Urban, Lifestyle and now Adventure INVESTOR PRESENTATION 11 November 2017
The Twins are Here The Interceptor and the Continental GT, powered by the 650 Twin. Heritage-inspired machines that carry the Royal Enfield legacy and character into the 21st century Continental GT Interceptor INVESTOR PRESENTATION 12 November 2017
Royal Enfield aims to lead and expand the mid-weight motorcycle segment globally Parallel Twin Cylinder Engine Interceptor 650 & Continental GT 650 New platform is a single overhead cam, 8 valve, The new 650 twins offers a compelling upgrade to the large air/oil-cooled, 648cc parallel twin, producing 47bhp base in India and 52Nm An attractive proposition to customers from other developing Royal Enfield aims to lead and grow the mid-weight markets in South East Asia and Latin America to graduate to (250-750cc) motorcycle segment globally, and the middle weight segment Interceptor 650 and Continental GT 650 will help A very evocative option to customers in mature motorcycle grow this segment markets such as Europe, Australia and North America INVESTOR PRESENTATION 13 November 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 14 November 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 666,493 700,000 80% 70% to “ UCE ” 68% 70% 600,000 57% 508,099 60% 52% Launch of 500,000 “ Classic ” 386,863 50% 42% 400,000 302,592 40% 300,000 30% 20% 31% 178,121 18% 200,000 13% 20% 113,432 52,576 7% 74,626 100,000 51,955 43,298 32,642 36,786 10% 1% 0 0% CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 FY16 FY17 H1FY18 RE Volumes Y-o-Y Growth Note: Standalone volumes for Eicher Motors Limited 22.2% Volumes grew by 50% CAGR during the period 456,355 CY10 to FY17 373,551 7M'17 7M'18 INVESTOR PRESENTATION 15 November 2017
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