Professional Documents
Culture Documents
Presentation
November 2015
Safe Harbor
Contents
Key Milestones
Indias first
tractor rolls out
of Eicher factory
in Faridabad
1959
Enters heavy
duty
trucks
segment
Royal Enfield
motorcycles
acquired
1984
JV* with
Mitsubishi
Motors to make
Canter trucks
1991
1993
JV* with
Mitsubishi
ended, enters
medium duty
bus segment
2002
2005
2008
Commencement
of business by
Eicher Polaris
2012
2015
*Joint Venture
54.91%
0%
10%
20%
30%
Domestic
Institutional
Investor's Others
Foreign
Institutional
Investor's
4.27% 13.77%
27.05%
40%
50%
60%
70%
80%
90%
100%
45.6
Polaris Industries
54.4
VE Commercial
Vehicles (VECV)
Business unit
of Eicher
Motors
Limited
50
50
Motorcycles Business
Established Corporate
Governance
Fully empowered
management teams
Annual 3 year rolling
business plan
Strategic quarterly board
meetings full review with
management
Strategic quarterly reviews
®ular monthly
operations review
Product board, Quality
board, Customer
Satisfcation board, Soft
product board (aftermarket) held every quarter
along with other statutory
meetings
Strong Values
Corporate conduct rooted
in highest standards of
ethics, integrity &
transparency
Highly professional work
ethic based on mutual
respect
Very strong HR & IR culture
and brand
Long-term orientation
Long history of
institutionalized CSR &
community activities
Board
EML Board
VECV Board
EPPL Board
S Sandilya
Non-executive Chairman
Siddhartha Lal
Chairman & Managing Director
Siddhartha Lal
Chairman
Siddhartha Lal
Managing Director & CEO
Christophe Martin
Volvo nominated Director
Bennett Morgan
Polaris nominated director
Priya Brat
Independent Director
Philippe Divry
Volvo nominated director
Pankaj Dubey
Polaris nominated director
MJ Subbaiah
Independent Director
Raul Rai
Eicher nominated director
Michael Dougherty
Polaris nominated director
Prateek Jalan
Independent Director
Prateek Jalan
Independent director
B Govindarajan
Eicher nominated director
Manvi Sinha
Independent Director
Lila Poonawalla
Independent Director
Lalit Malik
Eicher nominated director
302,592
Debt free
company
22.5%
32.6%
VE Commercial Vehicles
market share in domestic
LMD# (5 - 14 tonne) segment
96%
3.7%
VE Commercial
Vehicles EBIT margin
in CY14, Best in Class
Total Revenue
Sales Volume
EBIT
(in nos)
12.2%
10.2% 10.1%
34,805
40,783
9.2%
7.3%
2014
Ratios
14.8%
525
2011
2012
2013
9M'14 9M'15
2011
17.5%
18.7%
11.5%
10.7%
2012
2013
ROCE
INV ESTOR P RESENTA TION
NOVEMBER 2 0 1 5
2014
9M'14 9M'15
0%
12.0%
3,27,069
24.1%
13.6%
521
2014
2013
Networth
1,493
475
2012
(in %)
24.6%
759
2011
23.5%
497
9M'15
VECV
702
9M'14
5%
2014
9M'15
2011
2012
2013
2014
3,185
RE
2013
467
652
2,525
2012
2,20,377
2011
1,046
583
2,516
9M'14 9M'15
525
2,055
2014
49,042
10%
8.6%
895
1,755
2013
48,831
1,78,121
2012
6,444
1,13,432
2011
6,810
74,626
5,684
6,390
41,251
8,607
3,02,592
31,291
8,738
15%
9M'14 9M'15
ROA
EBIT Earning Before Interest & Tax
Profit After Tax is before minority interest
10
ROYAL ENFIELD
11
12
Classic
Iconic
Admired &
Respected
Different from
the boys
Premium
Adventure seeker
Thunderbird
Enjoy Youthful
pleasures
Fun loving, Playful
Enthusiastic,
Passionate
Fresh & New
Continental GT
Fun
Sporty
Classy and
Fashionable
Passionate,
Enthusiastic
13
14
4,00,000
70%
3,71,590
3,50,000
70%
3,00,000
57%
3,02,592
60%
52%
2,46,415
2,50,000
Launch of Classic
50%
42%
2,00,000
40%
1,78,121
1,50,000
30%
18%
1,00,000
13%
50,000
80%
32,642
36,786
2006
2007
43,298
1,13,432
20%
20%
74,626
51,955
52,576
10%
1%
0%
2008
2009
2010
2011
2012
2013
2014
15
Sales Volume
Total Revenue
(in nos)
22.5% 22.8%
24.8%
25%
20%
2012
2013
2014
9M'14
9M'15
2011
2012
2013
2014
3,27,069
2,20,377
1,13,432
2011
1,049
1,702
74,626
671
2,203
1,78,121
3,031
3,02,592
16.6%
3,359
9M'14
9M'15
10.0%
12.2%
834
682
67
128
2011
2012
503
2014
15%
10%
5%
283
2013
30%
9M'14 9M'15
0%
559
125
145
2011
2012
626
20.3%
435
14.7%
279
4.7%
2013
2014
9M'14
9M'15
2011
6.8%
2012
14.5%
10.5%
2013
198
2014
9M'14
9M'15
2011
249
2012
307
2013
392
2014
450
9M'15
16
Our Footprint
UK
Milwaukee
France
Spain
UAE
Colombia
Sao Paulo
Colombia 5 | UK 2
UAE 1 | France 1 | Spain 1
Marketing Companies
Tech Centers India (Chennai) | UK
Corporate Office - India (Gurgaon)
Number of permanent
employees (Royal Enfield)
1,547 (a s of Sept. 2015)
Manufacturing facilities
Tiruvottivur
Oragadam
Vallam Vadagal (upcoming)
Distribution Network
Total 467 (India)
17
Industry Overview
Motorcycle Volumes (India)
(in lacs)
99.25
2011
2012
109.14
102.75
2013
2014
82.71
78.66
9M'14
9M'15
6.5%
6.1%
1.3%
2012
1.8%
3.3%
1.3%
2013
2014
9M'15
-7.3%
18
US$ 7 Tn.
US$ 3.4 Tn.
7.20%
Age Group
1%
28%
0-14
9.40%
8.20%
9%
15-59
60+
80+
FY15
FY16 - FY20 f
62%
FY21 - FY25 f
Source: United Nations report "World Population Prospects: The 2015 Revision
Growth in urbanization
As a % of total population
21%
(In mn)
32%
286
314
351
388
2001
2005
2010
2015f
Population Shift
Source: Census of India 2001, population projection 2001-2016
INV ESTOR P RESENTA TION
NOVEMBER 2 0 1 5
425
2020f
61
62
66
70
39
38
34
30
FY12
FY15f
FY20f
FY25f
Basic
Discretionary spending
F: D&B forecast | Source: CSO, D&B India
19
Developing
Markets
Motorcycles
Industry
> 750cc
250-750cc
Mid
<250cc
Mass
Commuter
Motorcycles
Period: 2011-14
Motorcycle Industry
Premium
Motorcycles
Premium
> 750cc
Mid
Segment CAGR: 5%
Period: 2011-14
Mass
250-750cc
Mature
Markets
<250cc
Capacity
Product
Development
Distribution
21
Entering e-commerce
reaching riders and
non-riders seamlessly
DESPATCHED! our
Limited Edition tribute
22
VE COMMERCIAL VEHICLES
23
VOLVO
STRENGTHS
VECV vision
To be recognised as
the industry leader
driving modernisation
in commercial
transportation in India
and the developing
world
Global expertise
Leadership in product
technology
Good infrastructure
facilities
Well-defined processes
and controls
Brand image and
customer relationships
Milestones
25
Milestones
26
Volumes
Eicher Light to Medium
Duty Trucks (5-14 tonne)
49,042 48,831
2011
2012
31,381 29,541
41,251 40,783
2013
2014
9M'14 9M'15
Buses
8,521
8,333
8,123
6,496
23,176
31,291 34,805
2011
7,040
2012
2013
2014
2013
8,340
9M'14 9M'15
2014
7,352
9M'14 9M'15
2011
2,501
2012
2013
5,629
2013
2014
4,190
4,005
9M'14 9M'15
705
2011
569
2012
701
2013
5,473
9M'14 9M'15
891
4,336
2014
2012
5,741
Volvo Trucks
(in nos)
5,824
3,300
2011
(in nos)
7,699
15,098 16,118
Exports
(in nos)
3,108
2011
2012
20,316
(in nos)
(in nos)
869
627
2014
9M'14 9M'15
27
Market Share
Eicher Heavy Duty Trucks
4.0
In %
4.4
3.6
3.5
30.5
3.1
30.5
31.4
In %
32.6
30.4
32.7
26.7
2.0
1.1
2009
2010
2011
2012
2013
2014
YTD
Sep'15
Eicher Buses
In %
2009
2010
2011
2012
2013
11.9
13.5
YTD
Sep'15
14.9
2014
15.4
9.3
9.7
11
12.4
13
In %
12
9.7
5.7
2009
6.7
2010
2011
2012
2013
2014
YTD
Sep'15
2009
2010
2011
2012
2013
2014
YTD
Sep'15
28
Total Revenue*
Total income from operations
5,016
5,348
5,130
2011
2012
2013
5,758
2014
9M'14
300
7.5%
200
506
7.7%
7.6%
6.7%
6.4%
10.0%
8.0%
6.0%
400
397
383
100
401
274
2012
2013
2014
9M'14
4.0%
414
330
2.0%
0
2011
9M'15
12.0%
10.1%
400
5,304
4,277
9M'15
0.0%
2011
2012
230
2013
189
2014
130
9M'14
189
9M'15
29
Baggad
*Abbreviation:
EEC - Eicher Engineering Components
VEPT - VE Power Train
SEZ - Special Economic Zone
HQ - Head Quarter
30
31
(in nos)
2,37,320
1,02,773
1,95,140
1,31,694
2011
2012
2013
1,54,879
2014
1,73,826
2011
71,042
2012
61,938
2013
54,697
2014
94,187
1,26,210
Buses
67,236
2011
2012
47,768
2013
62,285
2014
51,666
40,134
2011
34,367
2012
41,338
27,342
2013
2014
55,998
Exports
(in nos)
57,774
76,318
(in nos)
34,053
36,699
32
8.8
7.5
6.4
4.3
FY05
FY10
FY15 f
FY 20f
FY 25f
f: D&B forecasts
Source: Planning Commission, D&B India
In. km
1,00,000
92,850
2013-14
2017 E
33
VECV Edge
VECV EDGE
Challenges
Stricter emission & Safety
Professionalization of transportation
& logistics
34
VECV Edge
VECV EDGE
Challenges
Availability of trained drivers
35
16,893
2009
32.6%
20,316
2014
16,819
YTD Oct'14
33.0%
18,461
YTD Oct'15
36
3.6%
3.7%
5,629
1.1%
6,176
4,636
1,424
2009
2014
YTD Oct'14
YTD Oct'15
Pro
6000
series
37
62.6%
61.8%
64%
900
1,000
891
659
2009
2014
YTD Oct'14
YTD Oct'15
Mining tipper
Tunnel tipper
INV ESTOR P RESENTA TION
NOVEMBER 2 0 1 5
5.7%
8,123
15.2%
15.4%
7,367
8,760
3,282
2009
2014
YTD Oct'14
YTD Oct'15
Skyline Pro
INV ESTOR P RESENTA TION
NOVEMBER 2 0 1 5
39
40
VE Powertrain
41
42
43
Eicher Polaris Private Ltd. was established in 2012 with strong parentage
EICHER
Prominent player in Indian
commercial vehicle space
Iconic Royal Enfield
motorcycle brand
Proven expertise in frugal
engineering and lean
manufacturing
POLARIS
Eicher Polaris Pvt. Ltd.
50:50 JV signed on
July 24, 2012
Investment till date:
INR 420 Cr
Launched Indias First
personal utility vehicle
(PUV) Multix, an
extremely adaptable
3 in 1 solution
44
Independent Businessmen
Some work for family & others for business. None works
for both
Estimated Population:
5.8 crores
45
3 in 1
Multix
Extremely adaptable 3 - in - 1 Solution
Comfortable seating for family of 5
1918 litres of space
Power Generation capacity of 3KW
Independent
Especially
designed
Pro-rideTM
Suspension & High ground clearance 225 mm
delivers best in class riding experience on all kinds of
roads
Safety: Tubular frame structure and Roll-Over
Protection System (ROPS) provides structural stability
and reinforced safety
Powered by proven and reliable diesel engine
delivering Fuel Efficiency of 28.45 Km/ ltr
FAMILY
BUSINESS
POWER
46
Journey: So Far
June 2015
Aug 2015
SOP/ Retail commence
across dealerships in 7
states
47
48
Multix Distribution
Gonda
Jaipur
Faizabad
Ajmer
Udaipur
Gorakhpur
Azamgarh
Varanasi
Kota
Patna
Jaunpur
Rajkot
Jalgaon
Bhavnagar
Dhule
Junagadh
Nashik
Nagpur
Akola
Available in 30 locations
Aurangabad
Vishakapatanam
Rajamundhry
Vijaywada
Nationwide in 2 years
Nellore
Tirupati
Vellore
Erode
Coimbatore
Salem
Villupuram
Trichy
Madurai
49
FINANCIALS
50
450
13.0%
12.1%
400
10.9%
350
10.2%
12.0%
11.3%
10.6%
10.0%
9.1%
300
250
7.6%
8.0%
405
200
352
150
229
100
50
14.0%
249
289
6.0%
4.0%
243
174
127
2.0%
0.0%
Q4'13
Q1'14
Q2'14
Q3'14
EBIT
INV ESTOR P RESENTA TION
NOVEMBER 2 0 1 5
Q4'14
Q1'15
Q2'15
Q3'15
EBIT margin
51
400
30.0%
350
23.4%
23.4%
24.4%
25.7%
25.0%
21.8%
21.4%
300
24.1%
20.0%
250
16.9%
15.0%
200
334
150
100
50
136
175
192
232
267
10.0%
181
5.0%
89
0.0%
Q4 '13
Q1 '14
Q2 '14
Q3 '14
EBIT
Q4 '14
Q1'15
Q2 '15
Q3 '15
EBIT margin
* Excludes any income/expenses from Treasury operations, dividend from subsidiary company
52
Thank You
Get Social :
Royal Enfield
Royal Enfield
VE Commercial Vehicles
Eicher Polaris Private Limited
53
APPENDIX
54
2010
2011
2012
2013
2014
881.61
1,341.01
2,030.35
2,762.86
3,556.16
454.71
856.71
1,496.17
2,119.73
2,728.13
Investments
458.59
512.62
638.45
825.41
917.09
Inventories
326.52
427.96
488.84
526.80
645.52
Debtors
260.93
344.58
445.87
512.50
562.17
1,245.68
1,191.51
803.50
682.56
480.58
216.89
460.00
598.65
669.59
1,074.08
933.21
1,397.56
1,644.94
2,061.00
2,567.30
1,116.81
1,026.49
691.92
330.45
195.05
Miscellaneous Expenditure
2,030.11
2,395.82
2,826.54
3,275.59
3,840.27
26.94
26.99
27.00
27.04
27.10
1,205.20
1,466.14
1,727.89
2,028.38
2,488.76
Net Worth
1,232.14
1,493.13
175.89
2,055.42
2,515.86
677.41
837.65
948.46
1,039.72
1,085.06
24.92
64.46
123.19
180.45
239.35
2,030.11
2395.82
2,826.54
3,275.59
3,840.27
Total
Share Capital
Minority Interest
Deferred Tax
Liability (net)
Borrowings
Total
INV ESTOR P RESENTA TION
NOVEMBER 2 0 1 5
55
2010
2011
2012
2013
2014
Sales Volume:
Commercial Vehicles (Nos.)
39,275
49,042
48,831
41,251
40,783
52,576
74,626
113,432
178,121
302,592
4,701.63
6,130.29
6,995.04
7,433.29
9,351.74
Other Income
127.57
142.48
136.64
95.29
107.44
Total Income
4,829.20
6,272.77
7,131.68
7,528.58
9,459.18
304.55
445.87
605.15
623.49
613.42
4,524.64
5,826.90
6,526.53
6,905.09
8,845.76
4,040.18
5,095.07
5,840.87
6,096.61
7,623.54
484.47
731.83
658.66
808.48
1,222.22
9.50
7.67
3.79
7.88
9.78
57.30
63.96
82.17
130.04
219.8
417.67
660.20
599.70
670.56
992.62
417.67
660.20
599.70
670.56
992.62
110.82
162.80
124.85
145.18
290.88
306.85
497.40
474.85
525.38
701.74
Minority Interest
117.93
188.63
150.59
131.44
86.38
188.92
308.77
324.26
393.94
615.36
56
Glossary
MD Medium Duty
CV Commercial Vehicles
CY Calendar Year
DIIs Domestic Institutional Investors
RE Royal Enfield
ROA Return on Assets = Profit After Tax / Avg Assets
E Estimated
EBIT Earnings Before Interest and Tax
57