Investor Presentation a November 2016 Contents EICHER MOTORS - PowerPoint PPT Presentation

Investor Presentation a November 2016

Contents EICHER MOTORS LIMITED - OVERVIEW ROYAL ENFIELD VE COMMERCIAL VEHICLES EICHER POLARIS FINANCIALS IMPACT OF IND-AS ON FINANCIALS APPENDIX Note: The Company followed “January - December” as its financial year. The Board of Directors in its meeting held on February 13, 2015 decided to align the financial year of the Company with the requirements of Companies Act, 2013. Therefore the financial 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 NOVEMBER 2016

EICHER MOTORS LIMITED - OVERVIEW INVESTOR PRESENTATION 3 NOVEMBER 2016

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 NOVEMBER 2016

Shareholding Pattern (30 th Sept. 2016) Domestic Foreign Institutional Investors Institutional Investors Others Promoter Group 50.60% 33.26% 3.48% 12.66% 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 NOVEMBER 2016

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 NOVEMBER 2016

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 NOVEMBER 2016

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% 8.1% Royal Enfield EBITDA VE Commercial Vehicles VE Commercial Vehicles margin in FY16, benchmark market share in domestic EBITDA margin in FY16, in automobile industry LMD # segment Best in Class ^ 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 NOVEMBER 2016 # 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 FY14-15FY15-16 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 EBITDA – Earning Before Interest ,Tax, Depreciation & Amortisation INVESTOR PRESENTATION Profit After Tax is before minority interest 9 NOVEMBER 2016

ROYAL ENFIELD INVESTOR PRESENTATION 10 NOVEMBER 2016

Oldest motorcycle brand in continuous production INVESTOR PRESENTATION 11 NOVEMBER 2016

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 NOVEMBER 2016

New Product launch- Himalayan • 411cc air cooled 4 stroke engine • 300mm front & 240 mm Bringing together 60 years of Himalayan riding experiences in a completely rear disc brakes ground-up design, and powered by a new LS 410 engine, the Royal Enfield Himalayan paves the way for a purer, non-extreme and more accessible form of • 220 mm ground clearance adventure touring in India INVESTOR PRESENTATION 13 NOVEMBER 2016

Product Portfolio – Gear Protective gear launched with Himalayan In October 2012, Royal Enfield launched its range Royal Enfield has also introduced of meticulously designed, meticulously designed, purpose-built purpose-built Accessories & protective riding gear that caters to the Apparel inspired by the long range tourer travelling to motorcycling way of life unpredictable places, terrains and climates. The protective gear range includes the 4-season Royal Enfield Darcha riding suit made in collaboration Despatch Rider Range with REV‘IT; versatile touring jackets and trousers with Cordura, protective Launched on 30 th May 2015 armour, removable thermal liners and this collection was inspired by breathable waterproof lining. The the Despatch riders of the collection also has riding gloves, riding world wars and the kit they trousers and riding boots. served in. The Gear blends classic military detailing with modern silhouettes. The range consisted of canvas, twill & leather jackets, urban riding boots, coated canvas bags, raw & selvedge denims, t-shirts and a host of leather accessories. INVESTOR PRESENTATION 14 NOVEMBER 2016

New launches led to surge in sales 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% Launch of “Classic” in 2009 was an inflection point 3,73,551 Volumes grew by 54% CAGR during the period CY10 to 2,78,746 FY15- 16, mainly due to high demand for “Classic” 7M'FY16 7M'FY17 INVESTOR PRESENTATION 15 NOVEMBER 2016