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

Investor Presentation a February 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 under review 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 FY14-15 (April 1st 2014 to March 31st 2015) and FY15-16 (April 1st 2015 to March 31st 2016). INVESTOR PRESENTATION 2 FEBRUARY 2017

EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION 3 FEBRUARY 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 FEBRUARY 2017

Shareholding Pattern (31 st December 2016) Domestic Foreign Institutional Investors Institutional Investors Promoter Group Others 50.59% 32.52% 3.84% 13.05% 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 FEBRUARY 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 FEBRUARY 2017

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

Business Highlights – FY 2015-16 ^ 0 508,099 96% EML continues to be Motorcycles sold in FY16, Royal Enfield’s market Debt free company 6x in last 5 years share in the mid-size motorcycles* segment 28.3% 33.9% Royal Enfield EBITDA VE Commercial Vehicles margin in FY16, benchmark market share in domestic in automobile industry LMD # segment Source – SIAM and Company Analysis ^ All figures mentioned are for period 1 st April’15 to 31 st March ’16 INVESTOR PRESENTATION 8 *Mid size motorcycles refers to engine capacity between 250cc – 750cc FEBRUARY 2017 # Light to Medium Duty (4.9 to 15 ton)

Financial Highlights – Eicher Motors Ltd. (Consolidated)* All figures are for Eicher Motors Limited consolidated (in Rs. Crore unless specified) Total Revenue Sales Volume EBITDA & Margins (in nos) Total revenue from operations (net of excise duty) 20.0% CAGR 21.8% 15.9% 39.8% 52,025 12.8% 13.4% 15.0% 10.4% 10.5% 41,822 8.6% 10.0% 40,783 2,081 13,121 5,08,099 41,251 9,382 5.0% 8,738 1,259 3,31,169 1,115 3,02,592 6,810 48,831 6,390 5,684 713 589 549 49,042 1,78,121 1,13,432 0.0% 74,626 CY11 CY12 CY13 CY14 FY15 FY16 CY11 CY12 CY13 CY14 FY15 FY16 CY11 CY12 CY13 CY14 FY15 FY16 The figures in % indicate EBITDA Margins. EBITDA Margin = EBITDA/Total revenue from operations RE VECV (net of excise duty) Profit After Tax Ratios Networth (in %) CAGR 23.9% CAGR 21.9% 28.0% 36.9% 62.2% 26.5% 24.6% 23.5% 18.7% 17.5% 16.2% 3,464 14.8% 1,236 12.5% 11.5% 10.7% 12.0% 2,707 2,516 2,055 762 702 1,755 1,493 525 497 475 CY11 CY12 CY13 CY14 FY15 FY16 CY11 CY12 CY13 CY14 FY15 FY16 CY11 CY12 CY13 CY14 FY15 FY16 ROCE ROA *As per Old Accounting standards (IGAAP) EBITDA – Earning Before Interest ,Tax, Depreciation & Amortisation INVESTOR PRESENTATION Profit After Tax is before minority interest 9 FEBRUARY 2017

ROYAL ENFIELD INVESTOR PRESENTATION 10 FEBRUARY 2017

Oldest motorcycle brand in continuous production INVESTOR PRESENTATION 11 FEBRUARY 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 12 FEBRUARY 2017

Product Portfolio – Gear Versatile, Functional, All- Season Protective Gear Royal Enfield Protective Gear has continued to expand Launched in October it’s portfolio of protective gear to support our riders 2012, Royal Enfield Gear aspirations of riding out. Whether it is a weekend ride bears quintessential out of the city or an odyssey in the mountains, there is a Royal Enfield hallmarks – solution for every situation. Designed exclusively for the craftsmanship, durability tropical Indian climate which is unlike any other in the and attention to detail. world, RE Gear is truly distinctive and one-of-its-kind. The launch of the Himalayan was accompanied by the Despatch Rider Range introduction of our flagship protective range, Darcha - a Urban Gear is an effort to extend the Royal Enfield lifestyle to beyond collaborative effort with Rev’it . This four-season just the motorcycle. A wide range of apparel and accessories for Royal protective gear range is true to the spirit of Himalayan Enfield enthusiasts to be true to the idea of Pure Motorcycling. and built to last for every terrain and weather. Every collection, since its inception in 2015, is inspired by an authentic story from our heritage or the places we ride to. Everything from our apparel range to accessories includes an element of the distinguished lifestyle motorcyclists live. INVESTOR PRESENTATION 13 FEBRUARY 2017

Launch of “Classic” in 2009 was an inflection point Launch of new “ Thunderbird ” and Launch of Launch of “ apparel & accessories ” “ Continental GT ” “ Himalayan ” 53.4% Transition of all models 6,00,000 80% to “ UCE ” 70% 5,08,099 70% 5,00,000 57% Launch of 60% 52% “ Classic ” 4,00,000 50% 3,31,169 42% 3,02,592 3,00,000 40% 30% 1,78,121 2,00,000 20% 18% 1,13,432 20% 13% 74,626 1,00,000 7% 51,955 52,576 43,298 36,786 10% 32,642 1% 0 0% CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 FY15 FY16 34.4% Volumes grew by 54% CAGR during the period CY10 to FY15-16 5,47,938 4,07,678 10M'FY16 10M'FY17 INVESTOR PRESENTATION 14 FEBRUARY 2017