Investor Presentation a June 2018
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 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 May 2018
EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION 3 May 2018
Key Milestones Enters heavy Forms JV* with AB Volvo India’s first duty of Sweden; transfers Shutdown of tractor rolls out Royal Enfield trucks commercial vehicle operations of of Eicher factory motorcycles segment business to the JV* Eicher Polaris in Faridabad acquired 1959 1984 1991 1993 2002 2005 2008 2012 2018 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 May 2018
Shareholding Pattern (31 st March 2018) Domestic Foreign Institutional Institutional Investors Investors Promoter Group Others 5.88% 12.66% 50.49% 30.97% 100% 0% 10% 20% 30% 40% 50% 70% 80% 90% 60% Eicher Motors Limited (EML) Volvo Group Business Unit 45.6 54.4 VE Commercial Royal Enfield (RE) Vehicles (VECV) RE Brazil (Royal RENA (Royal Enfield Brasil Enfield North Comercio de America Ltd.) Motocicletas Ltda) Eicher Trucks & Buses Motorcycles Business Volvo Trucks INVESTOR PRESENTATION 5 May 2018
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 May 2018
Board Eicher Motors Limited VE Commercial Vehicles S Sandilya Hakan Karlsson Non-executive Chairman Chairman Siddhartha Lal Vinod Aggarwal Managing Director & CEO Managing Director & CEO Prateek Jalan Siddhartha Lal Independent Director Eicher Nominated Director Manvi Sinha Jacques Michel Independent Director Volvo Nominated Director Philippe Divry Volvo Nominated Director Raul Rai Eicher Nominated Director Prateek Jalan Independent Director Lila Poonawalla Independent Director INVESTOR PRESENTATION 7 May 2018
Business Highlights – FY 2017-18 ^ 0 820,492 >90% EML continues to be Motorcycles sold in FY18, Royal Enfield’s market Debt free company 7x in last 6 years share in the mid-size motorcycles* segment 31.9% 32.2% Royal Enfield EBITDA VE Commercial Vehicles margin in FY18, 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’17 to 31 st March ’18 INVESTOR PRESENTATION 8 *Mid size motorcycles refers to engine capacity between 250cc – 750cc May 2018 # Light to Medium Duty (4.9 to 15 ton)
ROYAL ENFIELD INVESTOR PRESENTATION 9 May 2018
Oldest motorcycle brand in continuous production INVESTOR PRESENTATION 10 May 2018
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 Longest production Sense of Definitive Fun, youthful Purpose-built for 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 May 2018
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 May 2018
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 May 2018
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 individualism new grab-rail and shortened rear mudguard Boasting a bold yet elegant design treatment with Contemporary design with vibrant colors an overall blacked-out theme INVESTOR PRESENTATION 14 May 2018
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 INVESTOR PRESENTATION 15 May 2018
Limited edition ‘Classic 500 Pegasus’ Built to inspire the explorer in Inspired by the mountains everyone Inspired by Royal Enfield’s legacy of ‘Made Like a Gun’ - pedigree of making resilient longstanding machines 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 A tribute to the Royal Enfield RE/WD 125 ‘Flying Flea’, the legendary lightweight World War II British paratroopers’ motorcycle. Motorcycle Accessories The exclusive ‘Pegasus’ motorcycle is produced in official association with the British Army's Parachute Regiment INVESTOR PRESENTATION 16 May 2018
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