Earnings Presentation a Q4 & FY18 Management comment Royal - PowerPoint PPT Presentation

Earnings Presentation a Q4 & FY18

Management comment  Royal Enfield records highest ever sales of 820,121 motorcycles for FY 2017-18  EML recorded its highest ever total revenue from operations at Rs 8,965 crores, highest ever EBITDA at Rs 2,808 crores and highest ever Net Profit After Tax at Rs 1,960 crores for FY17-18  EML board recommends dividend of Rs.110 per share (1100%) Siddhartha Lal – CEO & MD Royal Enfield Royal Enfield posted its best ever performance in 4Q FY18 as the sales increased by 27% to 226,907 motorcycles over the corresponding quarter last year. Its revenue was also highest ever at Rs 2,528 crores for Q4 FY18, a growth of 34% over the corresponding period last year. The quarter also witnessed launch of "Himalayan Sleet" and "Thunderbird X" which received an encouraging response especially from younger audience. VE Commercial Vehicles In Q4 2017-18 VECV recorded a strong performance with a volume of 23,101 units, a growth of 33% over 17,341 units in the corresponding quarter last year. This growth in the quarter outpaced the industry, which grew by 21% over the corresponding quarter last year. With growing demand, VECV is witnessing increased interest in its Pro series of trucks, as customers continue to seek modern technology in the fast changing CV industry. Earnings Presentation 2 Q4 & FY18

Financial Highlights – Eicher Motors Limited All figures are for Eicher Motors Limited consolidated (in Rs. Crore unless specified) Total Revenue EBITDA & Margins (%) PAT* & Margins (%) Total revenue from operations (net of excise duty) 31.5% 24.3% 33.9% 31.0% 32.0% 470 25% 18.3% 31.0% 460 Q4FY18 20% 30.0% 450 29.0% 15% 440 28.0% 462 2,528 459 430 797 10% 27.0% 1,888 585 420 26.0% 5% 410 25.0% 400 24.0% 0% Q4FY17 Q4FY18 Q4FY17 Q4FY18 Q4FY17 Q4FY18 23.7% 31.3% 27.5% 32.0% 2100 25% 21.9% 30.9% 31.0% 1900 20% 30.0% 1700 FY18 29.0% 1500 15% 1300 28.0% 2,808 1,960 8,965 10% 2,174 1100 1,667 27.0% 7,033 26.0% 900 5% 700 25.0% 500 24.0% 0% FY17 FY18 FY17 FY18 FY17 FY18 *NOTE: PAT above includes an amount of Rs. 187.03 crores of exceptional nature representing the Company’s share of loss for 4Q FY18 relating to winding down of operations of EPPL. PAT = Profit After Tax Earnings Presentation 3 3 EBITDA – Earning Before Interest ,Tax, Depreciation and Amortisation (Excludes Other Income) Q4 & FY18 EBITDA Margin = EBITDA/Total revenue from operations (net of excise duty)

Motorcycle Volumes All figures are for Eicher Motors Limited consolidated Total Volumes Domestic Volumes Exports (in nos) (in nos) (in nos) 27.2% 27.9% 4.4% 250000 200000 Q4FY18 150000 226,907 5,139 221,768 4,923 178,345 100000 173,422 50000 0 Q4FY17 Q4FY18 Q4FY17 Q4FY18 Q4FY17 Q4FY18 23.1% 23.1% 25.7% 900000 800000 700000 600000 FY18 500000 18,891 801,230 400000 820,121 651,110 15,025 666,135 300000 200000 100000 0 FY17 FY18 FY17 FY18 FY17 FY18 Market share of Royal Enfield in 150cc and above motorcycle segment increased from 24% in FY17 to 27% in FY18 Earnings Presentation 4 Q4 & FY18

Dealer Network Dealer Network (International) Dealer Network (India) (in nos) (in nos) Store Addition Store Addition 39 39 37 33 31 36 19 64 1 2 6 4 1 4 5 1 825 36 761 35 742 706 30 675 642 26 605 25 566 21 15 13 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 36 stores spread over 17 countries as of 31 st March 2018 Pan India presence with 825 dealers in 600+ towns as of 31 st March 2018 Plans to add ~20-30 stores internationally in FY19 Consistently adding ~150 dealers per year in India Store locations are as below: since last 3 years USA – 1 Spain – 4 Portugal – 1 Plans to add ~100 to 120 dealers in FY19 Mexico – 1 Indonesia – 3 Austria – 1 Colombia – 7 Thailand – 2 Brazil – 1 UK – 5 Philippines – 1 Vietnam – 1 UAE – 1 Australia – 1 Argentina – 1 France – 4 New Zealand – 1 Earnings Presentation 5 Q4 & FY18

Royal Enfield launches Thunderbird X A new custom-inspired motorcycle for urban explorers Designed to resonate with the new-age The Thunderbird X comes with alloy wheels, motorcyclists’ sense of self-expression and tubeless tyres, ‘gunslinger’ styled seat and the new individualism grab-rail and shortened rear mudguard Boasting a bold yet elegant design treatment with Contemporary design with vibrant colors an overall blacked-out theme Earnings Presentation 6 Q4 & FY18

Royal Enfield introduces the Himalayan Sleet Built to inspire the explorer in Inspired by the mountains everyone Inspired by the mountains, the new Himalayan Sleet sports a new colourway and pattern in shades of grey Long-travel suspension, natural upright riding position, dual purpose tyres combined with agile handling and a durable engine, all add up to a comfortable ride on the highway, city streets, or remote mountain roads. 500 exclusive Himalayan Sleets were launched as part of an online promotional event and were sold within 12 hours. These motorcycles were pre-fitted with the Explorer Kit, an assortment of Royal Enfield Genuine Motorcycle Accessories Earnings Presentation 7 Q4 & FY18

Royal Enfield Vintage – Foray into pre-owned motorcycle segment Vintage Store launched in Chennai • Pre-owned, refurbished and restored motorcycles - a first-of-its-kind in two-wheeler industry • Accessible, hassle-free, transparent sale and purchase of pre-owned Royal Enfield motorcycles • Quality tested and refurbished by trained Royal Enfield technicians Earnings Presentation 8 Q4 & FY18

Royal Enfield forays into Argentina, its third country in Latin America Flagship store in the heart of Buenos Aires Earnings Presentation 9 Q4 & FY18

Brand - Recent Milestones One Ride 2018 Tour de Colombia The eighth edition of Royal Enfield’s global marquee ride - Taking its marquee ride formats to international markets, Royal One Ride was held in 28 countries on Sunday, April 8th, 2018. Enfield flagged off the first ever edition of the Tour of Colombia This year, rides are being organised in more than 114 cities in from Bogota on February 24th, 2018. India. Over the 7 day ride, participants rode 1,400 kms through the One of the largest motorcycle community rides in the world, Colombian Northeast region, passing through villages and One Ride is a marquee event from Royal Enfield to encourage spectacular landscapes in the Eastern mountain range. its enthusiasts from around the world to ride as one. The camaraderie of thousands of Royal Enfield enthusiasts was witnessed on the day of the event. Earnings Presentation 10 Q4 & FY18 Continued…

Brand - Recent Milestones Air-Conditioned Workshop with White Out Open Lounge Royal Enfield’s new ride White Out is an attempt to take Royal Enfield opened an air-conditioned workshop with open extreme adventure, a notch higher than where it stood lounge in Delhi, which aims to reinforce the connect between earlier. Man and Machine by providing a first of a kind experience to its customers in the two-wheeler industry. 7 riders rode on extreme terrains, challenging their own grit not with the thought of conquering the Himalayas, but going This new workshop offers best of both worlds - OEM space and with the flow of these mystical snow-capped mountains on freelance mechanic workshop. this 9 day ride. With the fully air-conditioned lounge blended with a service The riders began their adventure from Shimla traversing area, the customers are able to witness the servicing of their Sangla – Nako – Tabo – Kaza – Pooh – Kalpa. motorcycles in real time and up close. Earnings Presentation 11 Q4 & FY18

VE COMMERCIAL VEHICLES Earnings Presentation 12 Q4 & FY18

Financial Highlights All figures are for VE Commercial Vehicles (in Rs. Crore unless specified) Total Revenue EBITDA & Margins (%) PAT & Margins (%) Total revenue from operations (net of excise duty) 29.9% 9.5% 10% 5.3% 6% 8.2% 9% 4.6% 5% 8% Q4FY18 7% 4% 6% 3,317 5% 3% 315 177 4% 2,554 2% 209 117 3% 2% 1% 1% 0% 0% Q4FY17 Q4FY18 Q4FY17 Q4FY18 Q4FY17 Q4FY18 4.7% 9.0% 17.5% 10% 5% 4.1% 7.9% 9% 5% 8% 4% 7% 4% FY18 6% 3% 5% 3% 472 905 10,049 4% 2% 348 678 8,553 3% 2% 2% 1% 1% 1% 0% 0% FY17 FY18 FY17 FY18 FY17 FY18 PAT = Profit After Tax Earnings Presentation 13 13 EBITDA – Earning Before Interest ,Tax, Depreciation and Amortisation (Excludes Other Income) Q4 & FY18 EBITDA Margin = EBITDA/Total revenue from operations (net of excise duty)

CV Volumes Eicher Light to Medium Eicher Heavy Duty Total CV* Volumes (in nos) Duty Trucks (5-15 tonne) (in nos) Trucks (16 tonne +) (in nos) 11,109 12,372 17,341 23,101 58,604 65,932 11,019 24,440 30,164 3,643 4,796 7,313 Q4FY17 Q4FY18 FY17 FY18 Q4FY17 Q4FY18 FY17 FY18 Q4FY17 Q4FY18 FY17 FY18 Buses Exports Volvo Trucks (in nos) (in nos) (in nos) 12,270 10,494 3,771 3,219 1,882 2,980 8,035 9,001 1,163 1,055 425 348 Q4FY17 Q4FY18 FY17 FY18 Q4FY17 Q4FY18 FY17 FY18 Q4FY17 Q4FY18 FY17 FY18 Earnings Presentation 14 CV* – Commercial Vehicles Q4 & FY18